General Provisions - Obligation - The object or subject matter of the obligation.

It may consist of
giving, doing or not doing something. (not thing but rather the
What is the Law on Obligations and Contracts? conduct)
The law on obligations and contracts is the body of rules which deals with the nature 4. Efficient cause
and sources of obligation and rights and duties arising from agreements and - The vinculum or the legal or juridical tie which binds the parties to
contracts. an obligation. The efficient cause of an obligation may be any of the
five sources of obligation.
Sources of “Law on Obligations and Contracts” Five sources of obligation:
The source of the Law on Obligations and Contracts is the Civil Code of the 1. Law 4. Acts or omissions
Philippines(Republic Act No. 386). 2. Contracts punished by law
Civil Code of the Philippines - approved on June 18, 1949 3. Quasi-contracts 5. Quasi delicts.
- took effect on August 30 Example 1:
- is based on the Civil Code of Spain, which D is obliged to give C P10,0000 with interest at 12% per annum on December 31.
took effect in the Philippines on December 7, 2021 pursuant to a contract of loan.
1889 passive subject - D
Definition of Obligation active subject - C
Art. 1156. An obligation is a juridical necessity to give, to do, or not to do. prestation - the giving of P10,000 with 12% interest
Juridical necessity- means that the court may be asked to order the performance efficient cause - contract of loan
of an obligation if the debtor refuses to perform it. The obligation here is unilateral. (only one party is required to perform a particular
2 parties in an obligation conduct and thet is D)
1. Debtor/ obligor - the party who is obliged to perform the obligation. (has Example 2:
duty) D is obliged to transport the goods of C from Manila to Cebu, and C is obliged to pay
2. Creditor/ obligee- the party who has the right to demand performance of the D P1,000 as transport costs, under a contract of carriage.
obligation (has right to demand)
Kinds of Obligation As regard the tarasport of the goods: As regard the payment of transport
costs:
1. Real Obligation - Obligation to give
active subject- C active subject - D
2. Personal Obligation - obligation to do or not to do. passive subject - D passive subject - C
a. Positive Personal Obligation - to do prestation - transport of the goods prestation - payment of transport costs
b. Negative Personal Obligation - not to do/give efficient cause - contract of carriage efficient cause - contract carriage
Requisites of Obligation/ Essential Elements of an Obligation
The obligations here are bilateral. (two parties are required to perform a particular
1. Active subject ( creditor or obligee)
conduct)
- The party who has the right to demand performance of the
obligation
2. Passive subject (debtor or obligor) Civil Obligation Natural Obligation
- based on positive law - Based on natural law
- The party who is obliged to perform the obligation
(enforceable by a court action) (not enforceable by a court
3. Prestation
action)

The obligation in Art. 1156 is a civil obligation.

Art. 1157. Obligation arise from * the person is not force to perform the act
1. Law; - imposed by law itself * in unilateral there is only one person to perform the act
2. Contracts; - stipulation of the parties * unjust enrichment - there is an unjust enrichment “when a person
3. Quasi-contracts; unjustly retains a benefit to the loss of another, or when a person
4. Acts or omissions punished by law; and retains money or property of another against the fundamental
5. Quasi-delicts. principles of justice , equity and good conscience
Examples:
Source of Obligation
a. Negotiorum gestio (gestor - spanish, manager - english)
1. Law
- refers to the voluntary administration of property,
- A rule of conduct, just and obligatory, laid down by legitimate
business or affairs of another without his consent or
authority for common observance and benefit.
authority
* rule of conduct because it guide us to action
- it creates the obligation to reimburse the gestor for
* the treatment of law should be equal, law should observed and
necessary and useful expenses.
followed
There is no negotiorum gestio in either of these instances:
* law is created and enacted in order for it to be observed and to be
i. When the property or business is not neglected or
followed
abandoned;
Examples:
ii. If in fact the manager has been tacitly authorized by the
1. The National Internal Revenue Code (NIRC)
owner.
- provides for the payment of taxes
b. Solutio indebiti
2. The Family Code of the Philippines
- refers to payment by mistake of an obligation which was
- provides for the obligation to support one’s family
not due when paid
2. Contracts
- it creates the obligation to return the payment.
- A contract is a meeting of minds between two persons whereby one
4. Acts or omissions punished by law
binds himself with respect to the other, to give something or to
- Also known as delicts
render some service.
- these are crimes or felonies
Examples
- the commission of a crime makes the offender civilly liable
1. Contract of lease
Civil Liabilities in Delicts
- provides for the payment of rental by the lessee
a. Restitution
- the 2 parties are lessor and lessee
- the thing itself shall be restored, even though it be found
2. Contract of sale
in the possession of a third person who has acquired it by
- requires the seller to deliver the thing sold anf the buyer
lawful means, saving to the latter his action against the
to pay the price
proper person, who may liable to him
- the 2 parties are seller and buyer
b. Reparation of the damage caused
- the court shall determine the amount of damage, taking
3. Quasi-contract (QUASI - Latin term which means “as if”
into consideration the price of the thing, whenever
- They refer to certain lawful, voluntary and unilateral acts giving
possible, and its special sentimental value to the injured
rise to a juridical relation to the end that no one shall be unjustly
party, and reparation shall be made accordingly.
enriched at the expense of another
* the acts are legal, they are not contrary to law
 c. Indemnification for consequential damages Art. 1158. Obligations derived from law are not presumed. Only those expressly
- Indemnification for consequential damages shall include determined in this Code or in special laws are demandable, and still be regulated by
not only those caused the injured party, but also those the precepts of the law which establishes them; and so to what has not been foreseen,
suffered by his family or by a third person by reason of the by the provisions of this Book.
crime * obligations derived from law are not assumed. Only those expressly
Example; determined or stated in the Civil Code of the Philippines or in special laws.
If D steals the carabao of C, * refers to the legal obligations or obligations imposed by specific provisions
D’s civils liability consists of: of law, which means that obligations arising from law are not presumed and that to
i. returning the carabao be demandable must be clearly provided for, expressly or impliedly in the law.
ii. Paying for its value if he cannot return it Examples: It is the duty of the Spouses to support each other. (Art. 291, New Civil
iii. Indemnifying the consequential damages suffered not Code). And under the National Internal Revenue Code, it is the duty of every person
only by C but allso those of his family or by third person having an income to pay taxes.
by reason of the crime
This will be in addition to any prison term or other Art. 1159. Obligations arising from contracts have the force of law between the
penalty that may be imposed upon him by the court. contracting parties and should be complied with in good faith.
* Every person criminally liable for a crime or felonies, is also civilly liable. * The parties may freely stipulate their duties and obligations in their
contract.
5. Quasi-delicts *Their agreement should not be contrary to law, morals, good customs,
- also known as “Quasi Ex-delicto” public order, or public policy.
- equivalent of the term “torn” in Anglo-American law * The agreement entered into between the parties must be respected and
- these are acts or omissions that cause damage to another , there being fault given the force of law between them.
or negligence but without any pre-existing contractual relation between the
parties Art. 1160. Obligation derived from quasi-contract shall be subject to the provisions of
Element of Negligence Chapter 1, Title XVII, of this Book.
1. The fault or negligence of the defendant; *
2. The damage suffered or incurred by the plaintiff; and
3. The relation of cause and effect between the fault or negligence of Art. 1161. Civil Obligations arising from criminal offenses shall be governed by the
the defendant and the damage incurred by the plaintiff. penal laws, subject to the provisions of Art. 2177, and of the pertinent provisions of
defendant - is the person sued in a civil proceeding Chapter 2, Preliminary Title, on Human Relations, and of the Title XVIII of this Book,
plaintiff - is the party who brings a civil suit in a court of law regulating damages
(complainant)
Example of Quasi-delict Art. 1162. Obligations derived from quasi-delicts shall be governed by the provision
If a person. While cleaning his window, causes a flower pot to fall through of Chapter 2, Title XVII of this Book, and by special laws.
his negligence thereby injuring someone passing by, the former is liable for
damage to the latter
NATURE AND EFFECT OF OBLIGATIONS General Rule: To take good care of the thing with diligence of a good father
Determinate thing of a family.
- A thing is determinate when it is particularly designed or physically Exceptions:
segregated from all others of the same class (Art. 1460) 1. Law requires another standard of care.
Generic thing This is a case where the debtor or obligor in obligation to give must
- A thing is indeterminate or generic when it is not particularly designated or observe a higher standard of care than ordinary diligence or
physically segregated from all others of the same class. diligence of a good father of a family because a specific law
As a rule, the loss of a determinate thing through a fortuitous event extinguishes the provides.
obligation. (Art. 1262) 2. The agreement of the parties requires another standard of care.
The loss of a generic thing through a fortuitous event does not extinguish the This is a case where the debtor or obligor and the creditor or
obligation. obligee agree on a higher standard of care which is higher than
- This rule is based on the principle that the genus of a thing can never perish. ordinary diligence or diligence of a good father of a family.
Fortuitous event 2. To deliver the thing (Art. 1163)
- Is any event which cannot be foreseen, or which, though foreseen, is This involves placing the thing in the possession or control of the creditor
inevitable either actually or constructively.
- It is not enough that the event should not have been foreseen or anticipated, Kinds of Delivery
but it must be one impossible to foresee or avoid. a. Actual Delivery - the act of ggiving real and immediate possession
- May either be: to the creditor
(a.) acts of God Example:
-natural calamities or occurrences S, the seller, entered into a contract of sale with B, the buyer,
Ex: earthquake, typhoon, lightning, flood involving a particular cell phone. The ging by S to B of that
(b.) acts of man particular cell phone is actual delivery.
Ex: wars, armed robbery. Riots b. Constructive Delivery - an act that amounts to a transfer of title by
Elements of Fortuitous Event operation of law when actual transfer is impractical or impossible.
a. The cause must be independent of the debtor’s will. Example:
b. There must be impossibility of foreseeing the event or of avoiding it even if S sold to B a particular parcel of land. They went to a notary public
it can be foreseen to assist them in the execution of a contract of sale. Such execution
c. The occurrence of the event must be of such character as to render it of a public instrument was done through constructive delivery.
impossible for the debtor to perform his obligation in a normal manner. 3. To deliver the fruits of the thing. (Art. 1164)
a. Kinds of Fruits
Obligations of One Obliged to Give a Determinate Thing. i. Natural fruits - they are the spontaneous products of the soil and
(Specific or Determinate Real Obligation) the young and other products of animals (Art. 442)
1. To take good care of the thing with diligence of a good father of a family Note: For the young and other products of animals, they are natural
unless the law or agreement of the parties requires another standard of care fruits even with the intervention of human labor.
(Art. 1163) Examples
Diligence of a good father of a family - the ordinary care that an average 1. The trees that grow naturally on the soil
person exercise in taking care of his property without the intervention of human labor
2. The colt delivered by a mare.
 3. Eggs and chicks of a chicken
ii. Industrial fruits - they refer to those produced by land of any
kind through cultivation or labor. (Art. 442)
b. When creditor has a right to the fruits of a determinate thing
c. When obligation to deliver the thing arises
d. Rights of the creditor

4. To deliver its accessiossions and accessories even if they have not been
mentioned (Art. 1166)
5.