Oblicon Week 1 Module v5 10 15 20
Oblicon Week 1 Module v5 10 15 20
Oblicon Week 1 Module v5 10 15 20
1. This module is intended as an easy reference for students. Art. 1162. Obligations derived from Quasi-Delicts
Due to space limitations, not everything will be discussed
here. The obligations arising from quasi-delicts are those done without
malicious intention. In order that an act or omission can be considered as
2. Students are encouraged to read the codal provisions a quasi-delict, it is necessary that the negligence or fault in question is not
wherein this module is based. Please refer to any book or punished by law. It the fault or negligence is punished by law, it ceases to
material for further learning. be a quasi-delict and becomes a crime or misdemeanor.
CHAPTER 2
Title I
NATURE AND EFFECT OF OBLIGATIONS
OBLIGATIONS
Art. 1163. Obligation to Give; Diligence to be Observed
Chapter 1
“Good father of a Family”
GENERAL PROVISIONS
Pending the deliver of a thing, the law requires of the giver to take care of
Art. 1156. Obligations defined. it with the proper diligence of a good father of a family meaning, the
ordinary diligence that a prudent man would exercise in taking care of his
Obligation comes from the latin word “obligare” which means “to bind”. own property and which depends upon the nature of the obligation and the
circumstances of the person, time and place.
A person may bind himself to perform an obligation which may consist in
giving, doing or not doing something. This standard of care prescribed by law may be changed if the law itself or
the parties stipulate otherwise.
Although the article specifically enumerates three (3) acts (i.e. to give, to
do or not to do), it is submitted that “not to give” is also included in the Art. 1164. When Creditor is Entitled to the Fruits
definition.
The creditor or oblige does not acquire a real right or the right of
“Juridical Necessity.” The rights and duties arising from obligations are ownership until the property has been delivered to him.
legally enforceable in case of non-compliance.
Take note that the delivery of thing includes fruits because the obligation
Essential requisites of an Obligation: to give a determinate thing includes the deliver of its accessions and
accessories. Fruits may refer to natural, industrial and civil fruits.
1. Juridical or legal tie: This is the vinculum or the link which
binds the parties to an obligation. Art. 1165. Classification of Obligation from the Viewpoint of Subject
Matter or Object
2. Prestation: This may consist in giving, not giving, doing or not
doing something. From the viewpoint of subject matter or object of the obligation, obligations
are divided into:
3. Active subject: The person who can demand the
performance of an obligation otherwise known as the a. Real Obligations (to give)
CREDITOR or OBLIGEE.
1. Specific or Determinate thing. A thing is determinate
4. Passive subject: The person from whom the prestation (duty) when it is particularly designated or physically
is demandable, otherwise known as the DEBTOR or
segregated from all others of the same class.
OBLIGOR.
2. Generic or Indeterminate thing. A thing is generic when
Art. 1157. Sources of Obligation it refers to a class of things or genus and is so indefinite
that it cannot be designated specifically.
There are five (5) sources of obligations namely: Law, Contracts, Quasi-
Contracts, Acts or Omissions punished by Law and Quasi-delicts. b. Personal Obligations (to do or not to do)
Art. 1158. Legal Obligations or Obligations Ex Lege Remedies of the Creditor when the Debtor fails to comply with his
obligation
These obligations are not presumed inasmuch legal obligations create
burdens upon the obligor. 1. Demand specific performance. This is true whether the
obligation is specific or generic.
Art. 1159. Obligations Ex-Contractu or Contractual Obligations 2. Demand rescission or cancellation.
3. Demand damages either with or without the first two
It is an established doctrine of law and sustained by the settled practice of mentioned remedies earlier.
the courts, that a man obligates himself to do that to which he promises to
be bound, because that which is agreed to in a contract is the law Art. 1166. What the Obligation to Give a Determinate Thing Includes
between such contracting parties. This rule is however subject to the
condition that the contract is not contrary to law, morals, good customs, It includes all its accessions and accessories even though no mention of
public order or public policy. them was made in the contract.
A quasi-contract is not the same as a contract because in a quasi- This provision refers to a personal obligation “to do.” If the obligor fails to
contract, there is no consent and the same is supplied by fiction of law comply with his obligation to do a particular thing, the same shall be
while in the case of a contract, consent is essential for validity. The executed at his cost. This is so for the reason that a person cannot by
principle involved in a quasi-contract is that no person shall be unjustly means of force or violation be compelled to do an act against his will.
enriched or benefitted at the expense of another.
Art. 1168. Negative Personal Obligations
Two Principal Kinds of Quasi-Contract
As a rule, the remedy is the undoing of the prohibited thing plus damages.
1. Negotiorum Gestio (unauthorized management)
2. Solutio Indebiti (undue payment) Art. 1169. When Obligor Incurs in Delay.
Art. 1161. Civil Obligations arising from Crimes Two conditions that must be complied with before an obligor can be
considered to have delayed the performance of his obligation.
1. The obligor fails to fulfill the obligation on the date agreed
upon; AND However, if the thing lost by reason of a fortuitous event is generic, its loss
2. There must have been a DEMAND by the creditor either does not produce the extinction of the obligation because in such case the
judicially or extra-judicially, which may be made orally or in principle will be genus nunquam perit (the genus never perishes).
writing, personally or through an authorized agent.
Art. 1175. Usury Defined.
Cases where demand is not necessary
It is contracting for or receiving something in excess of the amount
1. When the obligation expressly so declares. allowed by law for the loan or use of money, goods, chattels, or credits. In
2. When the law expressly so declares. other words, usury is the exaction of excessive interest.
3. When time is of the essence of the contract.
4. When demand will be useless. Rule on Interest Payments
Kinds of Delay (Mora) The rule is “no interest shall be due unless it has been expressly
stipulated in writing.”
1. Mora Solvendi ex re – Delay in giving or delivering a thing.
2. Mora Solvendi ex persona – Delay in obligations to do or If there is a stipulation as to the interest but the rate is not fixed, then the
perform personal service. creditor may recover only the legal rate. The legal rate of interest at
3. Mora Accipiendi – Delay in accepting the delivery of the present as fixed by the Monetary Board of the Bangko Sentral ng Pilipinas
is 12% per annum.
object or thing due.
4. Compensatio Morae – Delay in reciprocal obligations.
Therefore, to entitle the creditor to recover interest, three (3) requisites
must be complied with:
In reciprocal obligations, the performance of one is conditioned on the
simultaneous fulfillment of the other. When one party to a reciprocal
1. It must be stipulated in the contract;
obligation refuses to assume and perform the obligation imposed on him, 2. It must be in writing; and
the other party does not incur in delay. But the moment one performs his 3. It must be lawful and not usurious.
obligation and the other does not, then the latter incurs in delay.
Art. 1176. Presumption as to the Receipt of Principal Without
Art. 1170. Grounds for Liability in the Performance of Obligation Reservation as to Interest and Receipt of Later Installment
1. Fraud (deceit or dolo) By presumption, it means that the inference as to the existence of certain
2. Neglience (fault or culpa) facts which if not contradicted is considered true.
3. Default (or mora)
4. Violation of the terms of the obligation Two Kinds of Presumption
Art. 1171. Liability for Fraud or Dolo 1. Conclusive – a presumption which is conclusive is one which
cannot be contradicted.
Any waiver of an action for future fraud is void. 2. Disputable – a presumption which is disputable is one which
can be contradicted by presenting satisfactory proof to the
Art. 1172. Liability for Negligence or Culpa contrary.
Fraud distinguished from Negligence
Example of Receipt of Principal Without Reservation as to Interest
DOLO CULPA
A owes B the amount of PHP 100,000.00 with interest at 10% per annum
a. There is deliberate intention to a. No deliberate intention to (year). A paid the amount of the principal (PHP 100,000.00) and for which
cause damage or prejudice cause damage B issued a receipt without stating whether or not the interest has been
b. Liability arising from dolo b. Liability due to negligence paid. Under the circumstances, the law presumes that A has paid the
cannot be mitigated or reduced may be reduced in certain cases. interest because normally the interest is paid ahead of the principal. This,
by the Courts. however, is only a disputable presumption for the reason that evidence is
c. Waiver of an action to enforce c. Waiver of an action to enforce admissible to show that such interest had not been paid.
liability due to future fraud is liability due to future culpa may in
void. certain sense be allowed Example of Receipt of a Later Installment
General Rule (GR): No liability for a fortuitous event ( caso fortuito) (that Art. 1178. Transmissibility of Rights
which could not be foreseen, or which even if foreseen, was inevitable.
GR: Rights are transmissible
Exceptions (EX): The debtor is responsible for a fortuitous event in the
following cases: EX: 1. If the law provides otherwise;
2. If the contract provides otherwise;
1. When expressly declared by law. 3. If the obligation is purely personal.
2. When expressly declared by stipulation or contract.
3. When the nature of obligation requires the assumption of risk. CHAPTER 3
Effect of Fortuitous Event upon the thing to be delivered Pure Obligation – one without a condition or a term hence it is
demandable at once, provided there will be no absurdity.
The happening of a fortuitous event extinguishes the obligation to deliver,
yet that is true only when the thing to be delivered is a specific or Example: I promise to pay you PHP 1,000.000.00.
determinate thing, following the principle of res perit domino (the thing Conditional Obligation – when there is a condition.
perishes with the owner).
A casual condition depends on chance or upon the will of a third person.
Example: I’ll buy you a Slurpee if you do a Tiktok video of “It Really
Hurts.” Example: “I’ll give you 1 million pesos if I win the lotto.”
A condition is defined as an uncertain event which wields an influence on A mixed condition depends partly on the will of one of the parties and
a legal relationship. partly on chance or the will of a 3rd person.
On the other hand, a term or period is defined as that which necessarily Example: “I will give you 1 million pesos if you get accepted as an
must come (i.e. like 25 December 2020) whether the parties know when it employee at the Asian Development Bank (ADB).” It can be seen that the
will happen or not (i.e. like death of a person since this is not sure). condition here depends partly upon the will of the obligor and so also
partly upon the will of the third party, ADB. Even if you apply as an
When is an Obligation Demandable at Once? employee, you may not be hired by ADB.
6. Divisible – capable of partial performance. Example: I’ll give you my car if you marry Maria O this year. If by the end
7. Indivisible – not capable of partial performance because of of the year, Maria O is already dead, or you have not yet married her, the
the nature of the thing, or because of the intention of the obligation is extinguished.
parties.
Art. 1185. Negative Conditions
8. Positive – an act is to be performed.
9. Negative – something will be omitted. This has reference to a negative condition that some event will not happen
at a determinate time. The obligation will arise after the lapse of the
10. Express – the condition is stated. determinate time and it is evident that the event will not happen.
11. Implied – the condition is merely inferred.
Example: Pedro bound himself to give Juan a NMAX motorcycle if Juan
12. Possible – capable of fulfilment in nature and in law. would not make “ligaw” to Maria before the end of the year. If after the
13. Impossible – not capable of fulfilment due to nature or due to year Juan had not proposed love to Maria, then the obligation of Pedro to
the operation of the law or morals or public policy; or due to a give Juan a NMAX motorcycle arose.
contradiction in its terms.
Art. 1186. Rule When Debtor Voluntarily Prevents Fulfillment of the
14. Conjunctive – if all the conditions must be performed. Condition
15. Alternative – if only a few of the conditions have to be
performed. This provision contemplates of a case where the obligor intentionally
prevents the fulfilment of a condition which would entitle the oblige to
Art. 1180. Debtor to Pay “When His Means Permit” exact performance from the obligor; and an assumption underlying the
provision is that the obligor prevents the oblige from performing some act
In this provision, what depends really on the debtor is not his payment but which the oblige is entitled to perform as a condition precedent to the
the time when payment is to be made. Hence, the law considers this exaction of what is due him.
obligation as one with a term or period.
Example: A engaged the services of B to construct a road. Without
In determining the term or period of payment, the general rule is, the justification, A ordered the construction stopped when it was almost
creditor should ask the Court first for the fixing of the term, and it is only finished. B demanded payment from A for the whole price of the
when that term set arrives that he can demand fulfilment. construction. A refused to pay on the ground the construction was not
finished. Should A pay in full or not? A should pay in full for it was he who
voluntarily prevented the fulfilment of the condition (i.e. construction of the
Art. 1181. Suspensive and Resolutory Conditions
entire road) and so is as if the work had been completed.
Suspensive Condition: It is a condition which suspends the demandability Art. 1187. Effects of Fulfillment of a Suspensive Condition
of the obligation until the fulfilment of the condition. It is also known as
condition precedent. What is the effect once a suspensive condition is fulfilled? The obligation
becomes effective.
Example: I will give you a brand new Toyota Vios if you finish your
Financial Management course in the Pamantasan ng Lungsod ng From what day? It RETROACTS as a general rule to the day of the
Valenzuela (PLV). obligation was constituted.
Here the obligation to give you a car is not demandable at once but Example: On 01 December 2018, A obliged himself to give B a house
depends upon the event of your graduation in PLV. and lot if B passed the CPA examinations. In May 2019, B passed the
CPA examinations. The obligation of A to deliver the house of lot became
Resolutory Condition: It produces the extinguishment of an obligation effective on the day the obligation was constituted (01 December 2018)
upon the happening of an event. and not on B’s passing the CPA examination in May 2019.
A potestative condition depends on the exclusive will of the debtor and With regard to the fruits, who shall own them?
hence, it is void. This is due to the fact that the debtor will be placed in a
position where he can dictate whether he should or should not perform the The fruits from 01 December 2018 up to May 2019 should belong to A.
obligation. On the other hand, in case interest was agreed by the parties, B is not
Example: “I will give you 1 million pesos if I so desire.” obliged to pay the interest on the principal amount of PHP 1,000,000.00.
Art. 1188. Action to Preserve Creditor’s Rights & Right of Debtor to Example: The sound that a violin produces improves as the
Recover What Was Paid by Mistake violin grows older, so that if it takes B eight years to finish his
Financial Management course in PLV and in the intervening
Action to Preserve Creditor’s Rights period the sound of the violin is improved by time, the
improvement shall inure to the benefit of B.
Pending the fulfilment of the condition, the law gives the creditor certain
measures of protection for the preservation of his rights so that his right 6. Through the expense of the debtor.
may not be defeated by the dispositions or alienations that the debtor may
make before the happening of a condition. Example: If during the period that B has not yet finished his
Financial Management course, A had the violin varnished and
Example: Pedro obliges himself to deliver to Juan a one hectare lot in its parts adjusted so as to produce the desired sound at A’s
Arbortown, GTDL, Valenzuela City if Juan marries Maria. Juan, in order expense, A shall have no other right than that granted to a
to preserve his right against Pedro, may cause the annotation of Pedro’s usufructuary, that is, A may use the violin in the meantime
obligation at the back of the Torrens Certificate of Title of the land that B is finishing his course in PLV.
promised by Pedro to Juan so that even if Pedro decides to sell or
alienate the lot, Juan can legally claim the lot upon marrying Maria. Art. 1190. Effects When a Resolutory Condition is Fulfilled
Payment by Mistake in a Suspensive Condition The obligation is extinguished. Since the obligation had been
extinguished and considered to have had no effect, the parties should
When a suspensive condition is imposed, the law also allows the debtor to restore to each other what they received.
recover what he has paid by mistake similar to solution indebiti in quasi-
contracts. The parties are also obliged to make mutual restitution of whatever may
have been received by reason thereof.
Example: Suppose A promised to give B a 2020 Mitsubishi Expander if a
Cebu Pacific plane crashes on Mt. Apo. Now, a PAL plane crashes on Mt. Example: A gave B a parcel of land on the condition that B will never go
Pinatubo, and A mistakenly believes the condition to have been fulfilled, to the casino. A month later, B went to the casino. What happens to A’s
so he delivers the car to B. In this case, A can recover that car, under the obligation?
second paragraph of this article.
Answer: A’s obligation is extinguished, and therefore it is as if there
Art. 1189. Loss, Deterioration and Improvement During the Pendency of a never was an obligation at all. B will therefore have to return both the land
Condition and the fruits he had received therefrom from the moment A had given
him the land.
Take note that this Article applies only if:
Art. 1191. Meaning of Reciprocal Obligations
1. The suspensive condition is fulfilled; and
2. The object is specific (not generic). A reciprocal obligation is one where two parties are mutually obliged to do
or give something.
What are the three (3) things that may happen to the object of an
obligation pending the fulfilment of a suspensive condition? Example: In a contract of sale, the buyer can rescind or cancel the
contract if the seller does not deliver the thing sold, or the seller can
The object may be: 1. Lost; rescind if the buyer does not pay the purchase price.
2. Deteriorate (the value is reduced or impaired);
3. Improved. Take note that the right to rescind is implied or presumed to exist and
therefore, need not be expressly stipulated upon.
The object may be lost:
Art. 1192. Rule if Both Parties Have Committed a Breach
1. Without the fault of the debtor.
The rules enunciated under this provision are deemed just. The first one
Example: A obliges himself to give his one and only violin to B if B is fair to both parties because the second infractor also derive or thought
finishes his Financial Management course in PLV. If through a he would derive some advantage by his own act or neglect. The second
fortuitous event, A’s violin disappears without his fault, A’s obligation rule is likewise just, because it is presumed that both at about the same
to B is extinguished. time tried to reap some benefit.
Example: In the preceding example, if A negligently leaves the OBLIGATIONS WITH A PERIOD
violin in an E-trike and it is lost, certainly the loss is due to his fault
and would entitle B to demand damages. Art. 1193. Meaning of a Period
When is a thing considered “Loss?” A period is a certain length of time which determines the effectivity or the
extinguishment of obligations.
1. When it perishes (such as when a house is burnt to ashes).
2. When it goes out of commerce (when an object which is not Kinds of Period
prohibited becomes prohibited).
3. When it disappears in such a way that its existence is 1. Ex Die – It is a period with a suspensive effect. The
unknown (ex. carnap vehicle; it has been missing for some obligation begins upon the arrival of a day certain.
time).
4. When it disappears in such a way that it cannot be recovered Example: “I will support you, beginning the first day of next
(ex. diamond in Titanic). year.” Here, the obligation only becomes effective on the day
stipulated.
The object may deteriorate:
2. In Diem – It is a period with a resolutory effect. The validity of
3. Without the fault of the debtor. the obligation is up to a certain date. Upon the arrival of the
date, the obligation is extinguished.
Example: In the previous example, supposing the violin is tarnished
through no fault of A, then the impairment should be borne by B. Example: “I will support you until January 01 of next year.”
Here, the obligation is immediately demandable and will end
4. With the fault of the debtor. only on January 01 of the next year.
Example: In the same example, if A fails to keep the violin in a 3. Other Kinds:
proper place, and it is eaten by termites before delivery, B may
choose between the following: a. Legal Period – the period established by law.
b. Voluntary Period – the period agreed to by the parties.
a. Rescission of the obligation; or c. Judicial Period – the period authorized by the court.
b. Fulfillment of the obligation
Differences between Condition and Period
With indemnity for damages in either case. Condition Period
1. As to fulfillment A condition is an A period is an event
The object may improve: uncertain event. which must happen
sooner or later, at a
5. By nature or by time. date known
beforehand or at a
time which cannot be
determined.
2. As to time: A condition may refer A period always refer
to the past. to the future.
3. As to influence on A condition causes an A period fixes the
the obligation: obligation to arise or time for the
to cease. efficaciousness of an
obligation.
Art. 1195. Payment or Delivery Made Before the Arrival of the Period
Art. 1198. When the Debtor Loses the Benefit of the Period