TITLE

OBLIGATIONS
(Arts. 1156-1304, Civil Code.)

Chapter1
GENERAL PROVISIONS

ARTICLE 1156. An obligation is a juridical

necessity to give, to do or not to do. (n)

Meaning of obligation.
is derived from the Latin
word
The term obligatiorn
obligatio which means kying or binding
virtue of which
Itis a tie or bond recognized by law by
one is bound in favor of another to rendera something-and
certain act, or not
this may consist in giving a thing, doing
doing a certain act.
Civil Code definition.
Code definition of
Article 1156 gives the Civil
Obligation, in its passive aspect. merely
lt stresses the duty
who has the duty
under the law of the debtor or obligor (he
it speaks of obligation
of giving doing, or not doing) when
as a juridical necessity.

17
 18 THE LAw ON OBLIGATIONS AND
Art. 1156
CONTRACTS

Meaning of juridical necessity.

Obligation is a juridical necessity because in case of
noncompliance, the courts of justice may be called upon byy
the aggrieved party enforce its fulfillment or, in default
to
thereof, the economic value that it represents. In a proper
case, the debtor or obligor may also be made liable for
damages, which represents the sum of money given as a
compensation for the injury or harm sufferedby the creditor
or
obligee (he who has the right to the performance of the
obligation) for the violation of his rights.
In other words, the debtor must
comply with his obli-
gation whether he likes it or not; otherwise, his failure will
be visited with some harmful or undesirable
If consequences.
obligations were not made enforceable, then
people can
disregard them with impunity. There are, however, obliga-
tions that cannot be cnforced because
nized by law as binding.
they are not recog-

Nature of obligations under

the Civil Code.
Obligations which give to the creditor or obligee a
right under the law to enforce their
performance in courts
of justice are known as civil obligations. They are to be dis-
tinguished from natural obligations, which, not being based
on
positive law but on equity and natural law, do not grant
a
right of action to enforce their performance although in
case of voluntary fulfillment by the debtor, the latter may
not recover what has been delivered or rendered by reason
thereof. (Art. 1423.)
Natural obligations are discussed under the Title deal-
ing with "Natural Obligations." (Title I1, Arts. 1423-1430.))
Art. 1156 GENERAL PROVISIONS 19

Essential requisites of an obligation.

Every obligation has four (4) essential requisites,
namely:
(1) A passive subject (called debtor or obligor).- the
Derson who is bound to the fulfillment of the obligation; he
who has a duty;

(2) An active subject (called creditor or obligee).

of the
the person who is entitled to demand the fulfillment
obligation; he who has a right;
Object or prestation (subject matter of the obliga-
(3) debtor.
tion). the conduct required to be observed by the
Without the
It may consist in giving, doing, or not doing.
In bilateral obliga-
prestation, there is nothing to perform. and
a r c reciprocally debtors
tions (see Art. 1191.), the parties
creditors; and
called efficient cause).
(4) A juridical or legal tie (also
connects the parties to the obligation.
that which binds o r determined by knowing
can easily be
The tie in an obligation
(Art. 1157.)
the source of the obligation.

EXAMPLE:
himself to build a
contract, X bound
Under a building
house for Y for P1,000,000.
Y is the active subject,
Here, X is the passive subject, and the
o r prestation,
house is the object
the building of the is the s o u r c e
of the obligation,
or contract, which
agreement
is the juridical tie. it
constructed the house and
already
Suppose X had
construction
after the
that Y would pay X and Y the
was the agreement the active subject
becomes
1S finished, X then
passive subject.

Form of obligations. manner in which

refers to the in
or

ne form ofman obligationor incurred. It may be oral,

anifested
obligation is in writing
oral and partly
"ung, or partly
 OBLIGATIONS AND Art. 1156
20 THE LAW ON
CONTRACTS

(1) As a general rule, the law does not require any

from contracts for their validity
form in obligations arising
or binding force. (see
Art. 1356.))
from other sources (Art. 1157.)
(2) Obligations arising
do not have any form at all.

Obligation, right, and wrong distinguished.

which the law
(1) Obligation is the act or performance
will enforce.
(2) Right, on the other hand, is the power which a
person has under the law, to demand from another any
prestatioon.
(3) A wrong (cause of action), according to its legal
meaning, is an act or party in violation of
omission of one
the legal right or rights (i.e., recognized by law) of another.
In law, the term injury is also used to refer to the wrongful
violation of the legal right of another.
The essential elements of a legal wrong or injury are:
(a) a legal right in favor of a person (creditor/
obligee/plaintiff);
b) a correlative legal obligation on the part of
another (debtor/obligor/defendant); to respect or not
to violate said right; and
(c) an act or omission by the latter in violation
said right with resulting the
offormer. injury or damage to

An obligation on the part of a person cannot exist

without a corresponding right in favor of another, and vice
versa. A Wrong or cause ot actron only arises at the moment
a
right has been transgressed or violated.
EXAMPLE:
In the preceding example, Y has the legal right to have
his house constructed who has the
by X
correlative legal
Art. 1156 GENERAL P'ROVISIONS
21

obligation to build the house of Y under their contract. X

has the right to be paid the agreed compensation provided
the house is built according to the terms and conditions of
the contract. The failure of either party to comply with such
terms and conditions gives the other a cause of action for
the enforcement of his right and/or recovery of indemnity
for the loss or damage caused to him for the violation of his
right.

Kinds of obligation according

to the subject matter.
From the viewpoint of the subject matter, obligation
may be either real or personal.
(1) Real obligation (obligation to give) is that in which
the subject matter is a thing which the obligor must deliver
to the obligee.

EXAMPLE:
binds himself to deliver a piano to Y
X (e.g., seller)
(buyer).

(2)Personal obligation (obligation to do or not to do) is

to be done or not to
that in which the subject matter is an act
be done. There are two (2) kinds of personal obligation:
obligation to do
(a) Positive personal obligation
or

or to render service. (see Art. 1167.)

EXAMPLE
of Y.
X binds himself to repair the piano

is obligation not
(b) Negative personal obligation
includes obligations "not to
to do (which naturally
give"). (see Art. 1168.)
 Art. 1157
TIE LAWON OBLICATIONS ANLD
22 CONTRACTS

EXAMPLE:
not to build a fence on a certain
X obliges himself
of his lot in favor of Y
who is entitled to a right of
portion
over said lot.
way

ART. 1157. Obligations arise from:

(1) Law;
(2) Contracts;
(3) Quasi-contracts;

(4) Acts or omissions punished by law;

and

(5) Quasi-delicts. (1089a)

Sources of obligations.
The sources of obligations are enumerated below:

(1) Law.- when they are imposed by law itself.

EXAMPLES:

Obligation to pay taxcs; obligation to support one's

family. (Art. 291.)

(2) Contracts, - when they arise from the stipulation

of the parties. (Art. 1306.)

EXAMPLE:
The obligation to repay a loan or indebtedness by
virtue of an
agreement.
(3) Quasi-contracts. - when they arise from lawful,
voluntary and unilateral acts which are enforceable to the
end thatno one shall be
unjustly enriched or bencfited at the
expense of another. (Art. 2142.) In a sense, these obligations
may be considered as arising from law.
Art. 1157 GENERAL PROVISIONS 23

EXAMPLE
The obligation to return money paid by. mistake or
which is not due. (Art. 2154.)

(4) Crimes or acts or omissions punished by lawu. - when

they arise from civil liability which is the consequence of a
criminal offense. (Art. 1161.)

EXAMPLE:
The obligation of a thief to return the car stolen by him;
the duty of a killer to indemnify the heirs of his victim.

(5) Quasi-delicts or torts. - when they arise trom

damage caused to another through an act or omission, there
being fault or negligence, but no contractual relation exists
between the parties. (Art. 2176.)

EXAMPLES
The obligation of the head of a family that lives in a
building or a part. thereof to answer for damages caused
by things thrown or falling from the same (Art. 2193.);
the obligation of the possessor of an animal to pay for the
damage which it may have caused. (Art. 2183.)

Sources classified.
The law enumerates five (5) sources of obligations.
They may be classified as follows:
(1) Those emanating from law; and

(2) Those emanating from privateacts which may be

further subdivided into:
(a) Those arising trom licit acts, in the case of
contracts and quasi-contracts (infra.); and
(6) Those arising from illicit acts, which may be
either punishable in the case of delicts or crimes, or not
punishable in the case of quasi-delicts or torts. (infra.)