OBLIGATIONS Form of Obligation

Article 1156. An obligation is a juridical necessity to give, to do or not (1) As a general rule, the law does not require any form in
to do. obligations arising from contracts for their validity or
binding force. (see art 1356)
“Obligatio” – Latin word meaning tying or binding (2) Obligations arising from other sources (Art. 1157.) do not
have any form at all.
“Obligation is a LEGAL RELATION established between one party
and another whereby the latter is bound to the fulfillment of a Obligation, right and wrong (cause of action distinguished)
PRESTATION (the conduct which has to be observed by the
Debtor/Obligor) which the former may demand from him (1) Obligation is the act or performance which the law will
enforce.
(2) Right, on the other hand, is the power which a person has
Juridical Necessity – in case of non-compliance the courts may call under the law, to demand from another any prestation.
upon to enforce its fulfillment or, the economic value it represents. (3) A wrong (cause of action), according to its legal meaning, is
an act or omission of one party in violation of the legal right
or rights of another, causing injury to the latter.
Damages – represents the SUM OF MONEY given as a
compensation for the injury or harm suffered by the “In a breach of contract, the contract violated is the subject
creditor/oblige for the violation of his rights. matter, while the breach thereof by the obligor is the cause of
action.”
Creditor or Obligee – he who has the RIGHT TO THE PERFORMANCE Subject matter – the item with respect to which the controversy
of the Obligation. has arisen or concerning which the wrong has been done, and is
ordinarily the right, the thing or the contract under dispute.
Debtor or Obligor – he who has the Obligation to comply otherwise
shall be visited by Harmful/ Undesirable Legal Consequences
ESSENTIAL ELEMENTS OF THE CAUSE OF ACTION:

NATURE OF OBLIGATIONS (CC): 1. Essential Elements:

1. Civil Obligations – obligations which give to the

creditor/obligee a RIGHT OF ACTION in courts of justice to a. There is a LEGAL RIGHT in favor of a person
enforce their performance.
2. Natural Obligations –
b. There is a LEGAL OBLIGATION on the
part of another
NOT based on Positive Law (Law recognized by gov’t
authority); but on EQUITY and NATURAL LAW (derived
from nature and binding upon society); c. There is an ACT or OMISSION in breach
or violation of the said right by the
defendant (one being sued in civil action
does NOT grant a Right of Action to enforce their or prosecuted in a criminal action) with
performance; if voluntary fulfillment by debtor, cannot consequential injury or damage to the
recover what has been delivered plaintiff (one who brings an action at
law) for which he may maintain an act
for damages or appropriate relief
ESSENTIAL ELEMENTS/REQUISITES OF OBLIGATIONS: (assistance)

2. If any element is absent, complaint becomes

(1) Active Subject (Creditor/Obligee) – or the person who is
vulnerable to motion to dismiss on the ground of
entitled to DEMAND the fulfillment of the obligation; he
failure to state a cause of action
who has the RIGHT <power a person has under the law to
demand from another any prestation>
3. A cause of action only arises when the last element
occurs the moment a right has been transgressed
(2) Passive Subject (Debtor/Obligor) – person who is bound to
(trespassed).
the fulfillment of the obligation; he who has the
DUTY/OBLIGATION <act or performance which the law will
enforce> a. Right of action distinguished from maintain

b. Right of action/Right to commence

(3) Object/Prestation – SUBJECT MATTER of the obligation or <procedural law – laws which establish
the CONDUCT required to be observed by the debtor procedure and rules of court and the
(giving, doing, or not doing) court

(4) Juridical Tie/Legal Tie – EFFICIENT CAUSE or that system and which matters are conducted>

ii. Right to maintain an action <substantive

which BINDS OR CONNECTS the parties to the obligation. law – written law controlling rights and
The tie can be be easily determined by knowing the actions of persons within jurisdiction>
source of obligation.

For every Right enjoyed by a person, there is a corresponding

obligation on the part of another to respect such right.
Example:

X bound himself to construct a house for Y for 1M, contract X

– is the debtor/obligor/passive subject

Y – is the creditor/oblige/active subject

House – object/prestation

Contract – juridical tie

Cause of action based upon a written contract. KINDS OF OBLIGATIONS (SUBJECT MATTER):

- Actions based upon a written contract should be brought

within 10 years from the time the right of action accrues.
(Art. 1144). 1. Real Obligations (obligation to give)-The subject matter is a
thing which the obligor must deliver to the oblige;
o (Contracts) accrues only when an actual 2. Personal Obligation (obligation to do or not to do)- The
breach or violation occurs subject matter is an act to be done or not to be done;
a. Positive Personal Obligation – Obligation to do or
to render service.
o Period of Prescription – from the occurrence of b. Negative Personal Obligation – Obligation not to
breach do, includes “not to give”
ART 1157. Obligations arise from:
(1) Law;
o Injury – the ILLEGAL INVASION of a legal
(2) Contracts;
right; wrongful act or omission which
(3) Quasi – contracts;
causes loss or harm to another
(4) Acts or omissions punished by law; and
(5) Quasi-delicts. (1089a)
o Damage – Is the LOSS, HURT, or HARM
which results from the injury Sources of Obligations
1. Law – when they are imposed by the law itself.
2. Contracts – when they arise from stipulation of the parties.
o Damages – denotes the SUM OF MONEY 3. Quasi-contracts - when they arise from lawful, voluntary
recoverable as amends <compensation for and unilateral acts and which are enforceable to end that
loss or injury> for the wrongful act or no one shall be unjustly enriched or benefited at the
omission expense of another.
4. Crimes or acts or omissions punished by law - when they
arise from civil liability which is the consequence of a
o Injury – is the LEGAL WRONG to be criminal offense (Art. 1161)
redressed <remedied/compensated> 5. Quasi-delicts or torts – when they arise from damage
caused to another through an act or omission, there being
Injury, damage, and damages extinguished fault or negligence, but no contractual relation exists
between the parties.

Injury – is the legal invasion of a legal right; it is the wrongful Art. 1158. Obligations derived from LAW are not presumed. Only
act or omission which causes loss or harm to another; while those expressly determined in the CC or in special laws <other laws
damage is the loss, hurt, or harm which results from the no in CC> are demandable and shall be regulated by the percepts
injury. On the other hand, damages denote the sum of of the law which establishes them; as to what has not been
money recoverable as amends for wrongful act or omission; foreseen, by the provisions of this book.
and

Injury – is the legal wrong to be redressed, while damages

are the recompense or compensation awarded or
recoverable for the damage or loss suffered.

Existence of one without the other.

There may be injury without damage and damage without injury.

1. Proof of loss for injury – A wrongful violation of his legal

right is not sufficient to entitle a person to sue another in a
court of justice for the enforcement or protection of said
right. As a rule, there must be, in addition, loss or damage
caused to him by the violation of his right. But except for
actual and compensatory damages. ( Art. 2199), no
pecuniary proof is necessary in order that moral, nominal,
temperate, liquidated, or exemplary damages may be
awarded. ( Art. 2216.)

2. Liability for damages of a person for exercising his legal

rights – A person has the right to take all legal steps to
enforce his legal and/ or equitable rights. One who makes
use of his legal right does no injury. Qui jure suo utitur mullum
damum facit.. If damage results from a person’s exercising his
legal rights, it is damnum absque injuria (damage without injury)

Art.19. Every Person must in the exercise of his rights and in the
performance of his duties, act with justice, give everyone his due
and observe honesty and good faith.

damnum absque injuria – does not apply when there is an

abuse of a person’s right.