Obligations and Contracts Quasi-Contract

2 major Kinds of Quasi-Contracts

OBLIGATIONS 1. Negotiorum Gestio
2. Solutio Indebiti
An obligation is a juridical necessity to give, to do,
Other kinds of quasi-contracts
or not to do. (Art 1156) 1. Finder of Lost Property
2. Payment by Third Party
Elements of an Obligation: 3. Obligations Imposed by Law
Active Party
Passive Party Negotiorum Gestio
Prestation
Juridical Tie/Vinculum Juris
Gestor – the person who took possession of the
property.
Sources of Obligation (Art 1157)
1. Law
Elements of a Negotiorum Gestio
-obligations based on law are not presumed, must be
1. The property was abandoned and neglected
expressly provided in the law
2. The person who took over the possession is not
-ultimate source of obligation
authorized to do so.
2. Contracts
(3. Voluntary )
-has the force of law between the contracting parties
-binds only those who are privy to the contract
Obligations of a Gestor
3. Quasi-contracts
1. Take care of the property until the owner
-there exist no contractual obligation, but in the spirit of
returns.
equity and justice as well as fair play, an obligation
2. Take care of the property with the due diligence
nevertheless arises
of a good father.
4. Acts or omission punishable by law
3. Return the property to the owner
-crimes. There must be a law prohibiting the act or
omission before it becomes punishable
Obligation of the Owner
5. Quasi-delict
1. Reimburse the gestor of all his expenses which
-may be committed by fault or negligence
are necessary and desirable to the property
-the failure to exercise the required diligence is the
source of obligation.
General Rule:
The gestor shall be liable for the damage caused to the
Effects and Nature of Obligation
property while it is under his management.
-the default diligence required in fulfilling an obligation
is the diligence of a good father.
Exception:
-any person who is obliged to deliver something is also
If the property was damaged through fortuitous event
required to deliver the fruits of the thing after it was
overdue. It shall also include all the accessories and
Exception to the Exception:
accessions.
1. When the gestor undertakes risky operation
-if the obligation is deliver a generic thing, the loss of
which the owner is not accustomed to embark
the object does not extinguish the obligation
upon
-if the obligation if deliver a specific thing, the loss of
2. If he has preferred his own interest to that of
the object extinguishes the obligation, but if the thing
the owner
was lost due to the fault of the debtor, he shall be liable
3. If he fails to return the property after the
for damages.
demand of the owner
-if the debtor fails to deliver the goods on time, in
4. If he assumed the management in bad faith.
contravention of tenor, negligently or through fraud, he
shall also be liable for damages.
A gestor is liable for the damage to property if:
1. He is manifestly unfit to manage the property
 2. He prevented a more qualified person to take -after 6 months, should the owner fails to retrieve the
over the management property, it shall be awarded to the finder. The fidner
Except: if he undertook the management to save the however is liable to pay the expenses of the state.
property from imminent danger -should the owner claims the property, he shall be
obliged to give 1/10 of the value of the property to the
3 kinds of Delay (Mora) finder as a finder’s fee. He is also liable to pay the
1. Mora Solvendi (delay by the debtor) expenses of the state.
2. Mora Accipiendi (delay by the creditor)
3. Compensation Morae (delay by both) Obligations imposed by Law
Solutio Indebiti (Payment by Mistake)
1. Obligation to reimburse a stranger who
2 Kinds of Solutio Indebiti provided support without the knowledge of the
1. Delivery by Mistake person obliged to give support.
2. Payment before due 2. Obligation to reimburse anyone who paid for
the funeral expenses of a deceased
Delivery by mistake 3. Obligation to reimburse a person who provided
-anyone who receives something by mistake is obliged support because the person obliged to give
to return the same to: 1.) The person entitled to receive support refuses to do so.
it, 2.) The person who sent the property, 3.) The person 4. Obligation to reimburse a person who aided
who delivered the property. another whose life was in imminent danger by
-Should the property produces fruits, he shall be liable reason of calamity or natural disaster
to deliver the same together with the property 5. Obligation to reimburse the state in the event
-The person who returns said property is entitled to be that a person who is obliged to comply with any
reimbursed for his expenses in preserving and returning health or safety regulation fails to do so and the
the thing state performed the necessary task for him.

Payment before due Crimes

-should payment be made before it was due, anyone
who receive said payment is obliged to return the same
Anyone who is criminally liable is also civilly liable. (Art.
to the payor.
100, RPC)

Payment by Third Party Causes of Action

-Creditor is not obliged to receive payment from third
party because he is not privy to the contract(Art 1159) Civil Action
-Should the creditor accepts the payment, the third -There must be a right possessed by the claimant
party will acquire all the rights of the creditor -There was a violation of said right by the respondent
-except when the debtor objects to the payment by -The respondent has the obligation to respect the right
third party, in which case, the debtor shall only be liable of the claimant
to the third party up the extent that he was benefitted.
Criminal Action
-There must be a law prohibiting an act or omission
Finder of Lost Property -There is a violation of such prohibition
-The accused is not justified or excused in the violation
-involves only personal or movable property
-if the owner is known, return to owner
 Civil action and criminal action may be
-if not, must deposit it with the mayor’s office
instituted separately
-the mayor’s office must publicly announce the find for
two consecutive weeks, through the means he deems  Should the claimant fails to file a separate civil
fit. (2 notices in 2 public places) action, it is deemed instituted together with the
-if the property is perishable, it must be auctioned 8 criminal action.
days after publication.
In case the criminal and civil action were instituted in 5. State – for damage or injury caused by special
the same case: agents, or for faulty or damaged public
-If the accused dies before the final judgment, both the structures and utilities
criminal and civil liability shall be extinguished 6. Teacher or School Administration – for damage
-if the accused dies after the final judgment, only the or injury caused by students who are under
criminal liability will be extinguished and the civil their care or supervision
liability will survive 7. Guardian of insane person – for damage or
injury caused by insane person under their
Kinds of Damages guardianship
Moral 8. Pet Owner – for damage or injury caused by
Exemplary unrestrained pets, unless the pet escaped due
Nominal to fortuitous event
Temperate 9. Owner of Vehicle – for damage or injury caused
Actual by his driver where the owner was a passenger
Liquidated in the vehicle when the incident occurred
10. Manufacturer – for damage or injury caused by
Quasi-delict a product produced by the manufacturer. (toxic
torts)

Anyone who by fault or negligence causes injury or

damage to another without any pre-existing contractual
obligation shall be liable for quasi-delict

Element s of Quasi-delict
1. Committed through fault or negligence
2. Caused injury or damage to another
3. There being no exiiting contractual obligation

Proximate Cause – that cause, which, in natural and

continuous sequence, unbroken by any efficient
intervening cause, produces the injury, and without
which the result would not have occurred.

Direct cause – that which actually caused the injury.

Quasi-delict may be due to the negligence of a person in

the performance of his duty or his negligence in the
supervision or management of another person.

The defense against a quasi-delict is the prove that the

person in question exercised the diligence required of
him.

Who are liable for quasi-delict?

1. Father, or in his absence or incapacity, the
mother – for damage or injury caused by minor
child.
2. Guardian – for damage or injury caused by ward
3. Manager or Owner of Establishment – for
damage or injury caused by employees within
the establishment
4. Employer – for damage or injury caused by
household helpers