Art. 1156.

An obligation is a juridical necessity

Definition of Obligation
to give, to do or not to do. (n)

Art. 1156. An obligation is a 1. Active subject (obligee/creditor): one in whose favor the obligation is constituted
juridical necessity 2. Passive subject (obligor/debtor): one who has the duty of giving, doing or not doing
to give, to do or not to do. (n) 3. Object: prestation; the conduct which has to be observed by the debtor/obligor

1. it must be licit (otherwise it is void)

2. it must be possible, physically and juridically (otherwise it is void)
3. it must be determinate or determinable (otherwise it is void)
4. it must have pecuniary value
REQUISITES OF AN OBLIGATION
a. Vinculum Juris: juridical/legal tie; binds the
parties to the obligation
b. Causa (causa debendi/causa obligationes):
why obligation exists
Art. 1157. Obligations arise from:
(1) Law;
(2) Contracts;
SOURCES OF OBLIGATION
(3) Quasi-contracts;
(4) Acts or omissions punished by law; and
(5) Quasi-delicts. (1089a)
SOURCE of OBLIGATION - LAW Must be expressly or impliedly set forth and
(OBLIGATION EX LEGE) cannot be presumed
• Must be complied with in good faith
• it is the "law" between parties;
SOURCE of OBLIGATION - • neither party may unilaterally evade his obligation in the contract, unless:
CONTRACT (OBLIGATION EX a. Contract authorizes it
CONTRACTU) b. Other party assents
• Parties may freely enter into any stipulations provided they are not contrary to law,
morals, good customs, public order or public policy
SOURCE of OBLIGATION - QUASI- Juridical relation resulting from lawful, voluntary and unilateral acts, which has for its
CONTRACT (OBLIGATION EX purpose, the payment of indemnity to the end that no one shall be unjustly enriched or
QUASICONTRACTU) benefited at the expense of another.
1. act giving rise to a quasi contract must be LAWFUL distinguishing it from delict;
QUASI-CONTRACT as distinguished 2. act must be VOLUNTARY distinguishing it from quasi-delict which is based on fault or
from other sources of obligation negligence;
3. act must be UNILATERAL distinguishing it from contract which is based on
agreement. (Tolentino, Volume IV, p. 68)
• Negotiorum gestio: unauthorized management;
arises whenever a person voluntarily takes
charge of the agency or management of
another's abandoned business or property
without the latter's authority
KINDS OF QUASI-CONTRACT
• Solutio indebiti: undue payment. Arises when a
person unduly delivers a thing through mistake to
another who has no right to demand it (must not
be through liberality or some other cause)
unauthorized management; arises whenever a person voluntarily takes charge of the
Negotiorum gestio agency or management of another's abandoned business or property without the
latter's authority
 Undue payment. Arises when a person unduly delivers a thing through mistake to
Solutio indebiti another who has no right to demand it (must not be through liberality or some other
cause)
SOURCES OF OBLIGATIONS -
DELICTS (OBLIGATION EX
RPC: Art. 100 Every person criminally liable for a felony is also civilly liable.
MALEFICIO OR EX
DELICTO )
1. Restitution
SCOPE OF CIVIL LIABILITY ARISING
2. Reparation for damage caused
FROM DELICTS
3. Indemnity for Consequential damages
EFFECT OF ACQUITTAL IN 1. When due to reasonable doubt - no civil liability
CRIMINAL CASE TO THE CIVIL 2. When due to exempting circumstances - there is civil liability
LIABILITY 3. When there is preponderance of evidence – there is civil liability
1. Contempt
2. Insults to persons in authority
CRIMES WITHOUT CIVIL LIABILITY
3. gambling
4. violations of traffic regulations (De Leon, 2003 ed.,p. 23)
SOURCES OF OBLIGATIONS -
QUASI-DELICT/TORTS It is an act or omission arising from fault or negligence which causes damage to
(OBLIGATION EX QUASIDELICTO another, there being no pre-existing contractual relations between the parties
Or EX QUASI MALEFICIO )
Elements of Quasi-Delict/Torts Elements of Quasi-Delict/Torts
Failure to observe for the protection of the interests of another person, that degree of
NEGLIGENCE care, precaution and vigilance which the circumstances justly demand, whereby such
other person suffers injury. (US v. Barrias, 23 Phil. 434 [1912])
1. Personal Obligations
NATURE OF OBLIGATIONS
2. Real Obligations
Obligations to do or not to do; where the subject matter is an act to be done or not to
be done
Personal Obligations
a. Positive - obligation to do
b. Negative - obligation not to do
Obligations to give; where the subject matter is a thing which the obligor must
deliver to the obligee
a. Determinate or specific - object is particularly designated or physically segregated
Real Obligations from all other things of the same class
b. Generic -object is designated by its class or genus
c. Limited Generic - generic objects confined to a particular class
Ex: An obligation to deliver one of my horses
1. To preserve or take care of the thing due with the diligence of a good father of a
family
2. To deliver the fruits of the thing: Right to the fruits of the thing from the time the
obligation to deliver it arises
3. To deliver its accessions and accessories
DUTIES OF DEBTOR IN AN
• Accessions - additions to or improvements upon a thing. Ex: air conditioner in a car.
OBLIGATION TO GIVE A
• Accessories - things joined to, or included with the principal thing for its better use,
DETERMINATE THING
embellishment or completion. Ex:key of a house; frame of a picture (De Leon, 2003 ed.,
pp. 37-38)
4. To deliver the thing itself
5. To pay damages in case of breach of the obligation by reason of delay, fraud,
negligence or contravention of the tenor of the obligation.
DILIGENCE OF A GOOD FATHER OF ordinary care or that diligence which an average or reasonably prudent person would
A FAMILY exercise over his own property
• That which the law requires; or
Rule on Standard of Care • That stipulated by the parties; or
• In the absence of the two, diligence of a good father of a family
 GENERAL RULE: From the time of the perfection of the contract (i.e. meeting of the
minds between the parties)
• EXCEPTIONS
WHEN OBLIGATION TO DELIVER
a. when the parties made a stipulation as regards the right of the creditor to the fruits
ARISES
of the thing
b. when the obligation is subject to a suspensive condition or period; arises upon
fulfillment of the condition or arrival of the period
Accessions additions to or improvements upon a thing. Ex: air conditioner in a car.
things joined to, or included with the principal thing for its better use, embellishment or
Accessories
completion. Ex:key of a house; frame of a picture (De Leon, 2003 ed., pp. 37-38)
DUTIES OF DEBTOR IN AN 1. To deliver the thing which is neither of superior nor of inferior quality
OBLIGATION TO GIVE 2. To pay damages in case of breach of the obligation by reason of delay, fraud,
A GENERIC THING negligence or contravention of the tenor of the obligation.
1. Specific Performance: Performance by the debtor of the prestation itself
REMEDIES OF THE CREDITOR IN
2. Substitute Performance: someone else performs or something else is performed at
CASE OF NONPERFORMANCE
the expense of debtor
(See Arts 1165 - 1168)
3. Equivalent Performance: damages
1. Voluntary - debtor in the performance of the obligation is guilty of:
• fraud (Dolo)
• negligence (culpa)
• delay (mora)
BREACH OF OBLIGATIONS
• contravention of the tenor of the obligation
• NOTE: debtor is liable for damages
2. Involuntary - debtor is unable to comply with his obligation due to fortuitous event/s
• NOTE: debtor is not liable for damages
It is the deliberate or intentional evasion of the normal fulfillment of an obligation. (8
FRAUD (Dolo)
Manresa 72)
1. Causal Fraud (Dolo Causante): fraud employed in the execution of the contract
TYPES OF FRAUD 3. Incidental Fraud (Dolo Incidente): fraud in performance of obligation already existing
because of a contract
Waiver to future fraud future fraud cannot be waived. Only past fraud.
• Insist on specific performance (Art 1233)
REMEDIES OF DEFRAUDED PARTY • Resolve contract (Art 1191)
• Claim damages, in either case
Consists in the omission of that diligence which is required by the nature of the
NEGLIGENCE obligation and corresponds with the circumstances of the persons, of the time and of
the place.
1. Quasi-Delict (Culpa aquiliana/culpa extra contractual)- source of obligation
2. Contractual Negligence (Culpa Contractual)- negligence in the performance of a
contract
KINDS OF NEGLIGENCE
NOTE: Negligence can be waived except in cases where the nature of the obligation or
public policy requires another standard of care.
• EXCEPTIONS: Nature of Obligation of a Common carrier
WIL
1. Intention - In fraud, there is intent.
2. Liability - In fraud, liability cannot be mitigated while in negligence, it can be
Fraud vs. Negligence
mitigated.
3. Waiver - waiver for future fraud is VOID while waiver for future negligence may be
allowed in certain cases.
1. Negligence - In Culpa Aquiliana, negligence in independent of the contract while in
culpa contractual, it merely is an incident of performance in obligation.
Culpa Aquiliana vs. Culpa
Contractual 2. Contract - In Culpa Aquiliana, there may or MAY NOT be a pre-existing contractual
obligation while in culpa contractual, there is.
 3. Source of Obligation - In Culpa Aquiliana, the source of obligation is the negligence
itself while in culpa contractual, the source is the breach of contract.

4. Negligence - In Culpa Aquiliana, negligence must be proved while in culpa

contractual, the proof of the existence of contract and its breach is SUFFICIENT.

5. Diligence - In Culpa Aquliana, diligence of a good father is a defense while in Culpa

Contractual, it is not.
EFFECTS OF CONTRIBUTORY • GENERAL RULE: Reduces or mitigates the damages which he can recover
NEGLIGENCE OFTHE CREDITOR • EXCEPTION: If the negligent act or omission of the creditor is the proximate cause of
(May sala man si Creditor) the event which led to the damage or injury complained of, he cannot recover.
1. Ordinary Delay - failure to perform an obligation on time
Types of DELAY (MORA) 2. Legal Delay/ Default - failure to perform an obligation on time which failure
constitutes a breach of the obligation.
1. Obligation must be due, demandable and liquidated;
2. Debtor fails to perform his positive obligation on the date agreed upon;
3. A demand (not merely a reminder or notice), judicial or extra-judicial, made by the
REQUISITES OF DELAY
creditor upon the debtor to fulfill, perform or comply with his obligation otherwise, he
will be in default; and
4. Failure of the debtor to comply with such demand.
1. Mora Solvendi- default on the part of the debtor:
2. Mora Accipiendi - default on part of creditor when he unjustifiably refuses to accept
KINDS OF DELAY the performance of the obligation.
3. Compensatio morae - both parties are in default (in reciprocal obligations); there is
no actionable default on the part of both parties
Mora Solvendi- default on the part of the debtor:
• Mora Solvendi Ex re - default in real obligations
• Mora Solvendi Ex persona - default in personal obligations
• REQUISITES:
Types of Mora Solvendi (Debtor)
a. The obligation must be due, enforceable and already liquidated or determinate in
amount;
b. There must be non-performance; and
c. There must be a demand, unless demand is not required.
a. When the obligation or the law expressly
so declare; or
b. When from the nature and the
circumstances of the obligation it
appears that the designation of the time
General rule: No demand, no when the thing is to be delivered or the
delay.When is demand not service is to be rendered was a
necessary? controlling motive for the establishment
of the contract; or

c. When demand would be useless, as

when the obligor has rendered it beyond
his power to perform
a. Debtor is guilty of breach of the obligation
b. Liability: If obligation to pay money- must pay interest. If no extra-judicial demand,
interest runs from the filing of the complaint. In other obligations, pay damages.
• EFFECTS of Mora Solvendi
c. Obligations to deliver a determinate thing, liable for fortuitous events. If debtor can
(Debtor)
prove that loss would have resulted even if he had not been in default, the court may
equitably mitigate the damages (Art. 2215[4])
d. Resolution (Art 1170, in proper cases)
REQUISITES of Mora Accidpiendi REQUISITES:
(Creditor) a. Offer of performance by the debtor
 b. Offer must be to comply with the prestation as it should be performed
c. Creditor refuses the performance without just cause
a. Responsibility of debtor is limited to fraud and gross negligence
b. Debtor is exempted from risk of loss of thing; creditor bears risk of loss
EFFECTS of Mora Accidpiendi c. Expenses by debtor for preservation of thing after delay is chargeable to creditor
(Creditor) d. If obligation bears interest, debtor does not have to pay from time of delay
e. Creditor liable for damages
f. Debtor may relieve himself of obligation by consigning the thing
In reciprocal obligations, neither party incurs in delay if the other does not comply or is
not ready to comply in a proper manner with what is incumbent upon him. From the
Rule in Reciprocal Obligations moment one of the parties fulfills his obligation, delay by the other begins.
• Performance must be simultaneous unless different dates for the performance of the
obligation were fixed by the parties
• renunciation (express or implied)
CESSATION OF THE EFFECTS OF
• prescription
MORA:
• NOTE: There is no delay in negative obligations and natural obligations.
FORTUITOUS EVENT An event which could not be foreseen, or which though foreseen, was inevitable
1. The cause of the breach of the obligation must be independent of the will of the
debtor
2. The event must be either unforeseeable or unavoidable
REQUIREMENTS of Fortuitous
3. The event must be such as to render it impossible for the debtor to fulfill his
Events: (Nakpil and Sons vs. CA):
obligation in a normal manner
4. The debtor must be free from any participation in, or aggravation of injury to the
creditor
• GENERAL RULE: No liability for fortuitous event
• EXCEPTIONS:
1. When expressly declared by law ( bad faith, subject matter is generic, debtor is in
delay )
RULE ON FORTUITOUS EVENT:
2. When expressly declared by stipulation or contract
3. When nature of obligation requires assumption of risk
4. When the obligor is in default or has promised to deliver the same thing to two or
more persons who do not have the same interest (Art. 1165[3])
1. Exact fulfillment of the obligation by specific or substitute performance with a right
to damages in either case;
2. In case of reciprocal obligations, petition the court to resolve the contract;
3. Pursue the leviable (not exempt from attachment under the law) property of the
debtor;
REMEDIES AVAILABLE TO 4. Accion directa (Arts. 1729 and 1652):Right of the lessor to go directly to sublessee for
CREDITORS FOR THE unpaid rents of the lessee. Right of the laborers or persons who furnish materials for a
SATISFACTION OF THEIR CLAIMS piece of work undertaken by a contractor to go directly to the owner for any unpaid
claims due to the contractor
5. Accion subrogatoria - to be subrogated to all the rights and actions of the debtor
save those which are inherent in his person
6. Accion Pauliana - asking the court to rescind or to impugn all the acts which the
debtor may have done to defraud the creditors (Arts. 1380-1389)