Obligation and Contracts

OBLIGATION AND CONTRACTS Action - Ordinary suit in court of justice by
which one party prosecutes another for the

GENERAL PROVISIONS enforcement of protection for right of
prevention of a wrong.
Article 1156 -
An obligation is a judicial necessity Essential requisites of Obligation
to do or not to do.
Active subject - who has the power to
Definition of obligation establishes the demand prestation known as ( credior or
unilateral act of debtor to give, to do or not obligee)
to do as a patrimonial obligation.
Passive Subject - Bound to perform the
The debtor has the obligation while the prestation knows as the (debtor or obligor)
creditor has its rights. Object or Prestation - Consist in the act of
giving, doing or not doing something.
KINDS OF LAW
Physical law Vinculum Juris or Juridical Tie between two
deals with Science. subjects. It is legal to tie which constitute the
Moral law the source of obligation. (binds the debtor in
Right or wrong. favor of the creditor until obligation is
Natural law fulfilled.)
injustice, equity and fairness.
Divine law Contract vs. Obligation
religion and faith.
State law  Contract is only one of the sources of
body of rules promulgated by law obligation while obligation has other
makers for the common good. sources like law, quasi contract, delicts
of quasi delicts
Patrimonial Obligation  Contract is bilateral obligation whole
Those obligation with pecuniary obligation is a unilateral obligation
value in terms of money.  All contracts are obligation while not all
Accessible in terms of money with obligation are contracts
financial equivalent.
LAW of Obligations arises from
Characteristic of Patrimonial obligation: 1. Law. Obligations arise when imposed by
1. Represent and inclusively private the law itself and cannot be presumed.
interest ( transaction between parties [1] For example, an obligation arising
involve only) from law is the payment of taxes.
2. Create ties that are nature transitory 2. Contracts. Obligations arise from the
(temporary in nature, not forever stipulation of the parties; it has the force
bound ) ( you are free once obligation is of law and should be complied with in
full filled. ) good faith.[2] For example, a contract of
3. Exist to make a power in case of non sale between a buyer and a seller in
fulfillment, the economic equivalent which the obligation arises.
obtain at the patrimony of the debtor ( if 3. Quasi-Contracts. Certain lawful,
debtor don’t fulfill, you can run after voluntary and unilateral acts give rise to
financial equivalent ) the juridical relation of quasi-contract to
the end that no one shall be unjustly
Juridical necessity enriched or benefited at the expense of
Rights and duties arising from another.[3] For example, X owed Y
obligation are legally demandable. Php1,000. By mistake, X paid Y
Required to do or perform under the Php2,000. Y now has the obligation to
law. return the excess payment because
there was a mistake in the payment. This
is called solutio indebiti.
4. Acts or Omissions Punishable by Law.
Responsibility for fault or negligence
under a quasi-delict (Art. 2176, CC) is
entirely separate and distinct from the
civil liability arising from negligence
under the penal code. But the plaintiff
cannot recover damages twice for the
same act or omission of the defendant.
[4] For example, under the Revised Penal
Code murder and theft are prohibited. If
you commit any of them, you will have
the obligation to pay damages and fines
or be put in jail.
5. Quasi-Delicts. Obligations arise from
damages caused to another through an
act or omission, there being fault or
negligence but no contractual relations
exist between the parties.[5] For
example, X broke the car window of Y
while playing basketball. In this case, X
now has the obligation to pay the
damage caused to Y due to X's act
Article 1158 refers to legal obligations or

obligations arising from law. They are not
presumed because because they are
considered a burden upon the obligor. They
are the exception, not the rule. To be
demandable, they must be clearly set forth in
the law, i.e., the Civil Code or special laws.

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OBLIGATION AND CONTRACTS Action - Ordinary suit in court of justice by

which one party prosecutes another for the

Article 1158 refers to legal obligations or

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