II. General Provisions

II.
LAW ON OBLIGATIONS
GENERAL PROVISIONS
1156. An
obligation is a
juridical
necessity to
give, to do, or
not to do.
An obligation is a duty of a person
(obligor) to satisfy the rightful demand of
another person (obligee).
Youtube.com
JURIDICAL NECESSITY – connotes

that in case of noncompliance,
there will be legal sanctions.
EXAMPLE
JURIDICAL NECESSITY
X entered into a contract with Y whereby
X promise Y that she will complete the
bridal gown on or before August 30,
2019.
If X failed to do the bridal gown on

August 30, 2019 Y can sue her for
breach of contract.
OBLIGATION TO GIVE
It consist in the
delivery of a movable
or immovable thing to
the creditor.
EXAMPLE
OBLIGATION TO GIVE
X entered into an agreement with Y
whereby X bound herself to deliver to Y
10 sacks of Jasmine rice on or before
December 2019.
On or before December 2019 X need to

deliver the 10 sacks of jasmine rice.
OBLIGATION TO DO
It covers all
kinds of
works or
services
whether
physical or
mental.
slideshare.net
EXAMPLE
OBLIGATION TO DO
X entered into contract with Y
whereby X promise to fix the roof of
Y for P5,000 on or before August 15,
2019.
By August 15, 2019, the roof of Y

should have been fixed by X.
OBLIGATION
NOT TO DO
It consist
in
refraining
from doing
some
act/s.
EXAMPLE
OBLIGATION NOT TO DO
X and Y signed a contract

whereby X promised Y that he
will not remove the fence
separating their property for 3
years.
For 3 years X is prohibited from
removing the fence.
ELEMENTS OF OBLIGATION
a) ACTIVE SUBJECT
b) PASSIVE SUBJECT
c) PRESTATION
d) EFFICIENT CAUSE
e) CAUSA
ACTIVE SUBJECT
a) ACTIVE SUBJECT –
(Creditor / Obligee) the
person who is
demanding the
performance of the
obligation;
PASSIVE SUBJECT
b) PASSIVE SUBJECT –
(Debtor / Obligor) the
one bound to perform
the prestation or to
fulfill the obligation or
duty;
PRESTATION
c) PRESTATION – (to give,

to do, or not to do) object;
subject matter of the
obligation; conduct
required to be observed by
the debtor;
EFFICIENT CAUSE
d) EFFICIENT CAUSE –
the JURIDICAL TIE
which binds the parties
to the obligation; source
of the obligation.
JURIDICAL TIE
A juridical or legal tie

(efficient cause) — that
which binds or
connects the parties to
the obligation.
CAUSA
e) CAUSA (causa
debendi/causa
obligationes) - why
obligation exists.
EXAMPLE
ELEMENTS
X entered into a
contract with Y whereby
X will supply Y raw
materials needed in Y
manufacturing business
for one year.
Active subject – Y (he
demands supply of raw
materials.
Passive subject – X (he is
bound to deliver raw materials.
Prestation – delivery of raw
materials.
Efficient cause – contract
between the party for the
delivery and supply of raw
materials.
Causa- Y is in need of raw
materials. X can supply the raw
materials
SOURCE OF OBLIGATION
1157. Obligation arises from –
(1)law;
(2)contracts;
(3)quasi-contracts;
(4)acts or omissions punished
by law;
(5)quasi-delicts.
SOURCE OF OBLIGATION,
EXCLUSIVE
The enumeration of the
sources of obligations are
exclusive.
This means that no
obligation exist if its source is
not one of those enumerated in
Art. 1157 (Navales vs. Rias, 8
Phil. 508)
LAW
Law refers to a rule,
usually made by a
government, that is used
to order the way in which
a society behaves.
(Cambridge dictionary)
EXAMPLE
OBLIGATIO UNDER THE LAW
Duty of husband to support
the wife and the rest of the
family. (Art. 111 NCC)
Duty of taxpayer (can be

individual or corporate) to pay
their taxes to the government.
1158. Obligations from law are
not presumed. Only those (1)
expressly determined in this
code or (2) in special laws are
demandable, and shall be
regulated by the precepts of the
law which establishes them; and
as to what has not been
foreseen, by the provisions of
this code.
OBLIGATION DERIVED FROM LAW,
NEVER PRESUMED
These obligations are

expressly provided by law,
hence they are demandable and
enforceable.
If they are not provided by
law they are not demandable
and cannot be enforced.
EXAMPLE
OBLIGATION UNDER THE LAW
X is the biological father of Y. Y
can compel X to support him
even if there was no contract
because X is obliged to give
support under the law. (Under
Art. 111 of the Civil Code) and
(Art. 70 Family Code)
REGULATION OF OBLIGATION
ARISING FROM LAW
Regulation of Obligations
Arising from Law.
These obligation shall be

regulated by the provisions of
the law, which establishes them.
EXAMPLE
Regulation of Obligations Arising from Law
X being the father of Y is entitled to
provide support to his son Y under Art. 111
of the Civil Code and Article 70 of the
Family Code.
While X has the obligation to support

under Art. 111 of the NCC, his obligation to
support Y ceases if he cannot afford to do
so. This is provided for under Art. 303 (2)
Civil Code.
Article 303. The obligation to
give support shall also cease:
(2) When the resources of

the obligor have been reduced
to the point where he cannot
give the support without
neglecting his own needs and
those of his family;
CONTRACTS
(2) CONTRACTS
(Obligation ex contractu)
– arise from stipulations
of the parties: meeting of
the minds / formal
agreement.
WHAT IS A CONTRACT
A CONTRACT is a
meeting of minds between
two persons whereby one
binds himself, with respect
to the other, to give
something or to render
some service.
Contracts must be complied
with in good faith because it is
the “law” between parties.
Neither party may
unilaterally evade his obligation
in the contract, unless:
a) contract authorizes it
b) other party assents
EXAMPLE
OBLIGATION UNDER THE CONTRACT
X entered into an agreement with Y
for the delivery of raw materials urgently
needed by X company. The contract
specified payment of damages in case
of failure to fulfill the obligation.
If Y failed to fulfill his obligation X

can sue Y for breach of contract with
damages.
DAMAGES
DAMAGES – sum of
money given as a
compensation for the
injury or harm suffered
by the obligee for the
violation of his right.
EXAMPLE
OBLIGATION UNDER THE CONTRACT
Suppose the contract between X and Y
provides, “Y can assign the delivery of raw
materials to Z. In case of assignment, Y
cannot be held liable for damages in case Z
failed to deliver ”.
In this situation, if Y assigned the delivery
to Z and Z failed to deliver X cannot sue Y
for damages because the contract
specified Y cannot be held liable for
damages in case he assigned Z to deliver
the raw material.
QUASI-CONTRACTS (Obligation
ex quasi-contractu)
(3) QUASI-CONTRACTS
(Obligation ex quasi-contractu) –
arise from lawful, voluntary and
unilateral acts and which are
enforceable to the end that no
one shall be unjustly enriched or
benefited at the expense of
another.
QUASI-CONTRACT
QUASI-CONTRACTS- an
obligation of one party to
another imposed by law
independently of an
agreement between the
parties.
EXAMPLE
QUASI-CONTRACT
X hires Y to replace some
galvanized roof of his house because it
is leaking.
During work, Y found out that the

roof support is about to give way so he
decided to do the work and replace the
roof support.
EXAMPLE
QUASI-CONTRACT
Upon completion, X only
pays Y the amount for
replacing the galvanized
roof and did not pay Y for
the materials and work of
the roof support.
Y may have a case
for quasi-contract to
seek restitution for the
added work and
materials used to fix the
roof support.
TWO (2) KINDS
QUASI-CONTRACTS
a. NEGOTIORUM GESTIO
b. SOLUTIO INDEBITI
NEGOTIORUM GESTIO
a. NEGOTIORUM GESTIO -
unauthorized management;
This takes place when a
person voluntarily takes charge
of another’s abandoned
business or property without the
owner’s authority.
The gestor is only entitled to
reimbursement for expenses
and not to remuneration, the
underlying principle being that
negotiorum gestio is intended as
an act of generosity and
friendship and not to allow the
gestor to profit from his
intermeddling.
EXAMPLE
NEGOTIORUM GESTIO
X family went abroad for a
holiday. While abroad a typhoon
caused floods in the Philippines.
Y, a neighbor, contracted a
hauling services to remove X car
so it will not be submerged in
flood. Y paid 5K for the hauling
services.
Even if the act of Y is unauthorized by X, Y
can still ask for reimbursement because of
negotiorum gestio. if Y did not call the
hauling services, the car of X will surely
perish.
Y can only ask reimbursement of 5K which

is the amount he spent for the hauling
services.
Y cannot ask X to pay more than the 5K

because the law does not allow him to
profit for the unauthorized act he did.
X is the the 'principal.
Y is the 'gestor.
negotiorum gestio-the act

which saved the car.
SOLUTIO INDEBITI
b. SOLUTIO INDEBITI- undue
payment.
This takes place when

something is received when there is
no right to demand it, and it was
unduly delivered thru mistake
EXAMPLE
SOLUTIO INDEBITI
X owed Y the sum of
P10,000.00. By mistake, X
paid Y P20,000.00. Y has the
obligation to return the
P10,000.00 excess because
there was payment by
mistake.
DELICTS
(4) DELICTS
(Obligation ex maleficio
or ex delicto) – arise
from civil liability which
is the consequence of a
criminal offense.
DELICT
Delict is a term in civil law
jurisdictions for a civil wrong
consisting of an intentional or
negligent breach of duty of care
that inflicts loss or harm and
which triggers legal liability for
the wrongdoer. (Wikipedia)
EXAMPLE
DELICT
X after a drinking
session drive his car home.
On his way he hit the cart
of Y who was on the
sidewalk damaging the
goods.
X apart from facing criminal
charges (reckless
imprudence resulting to
damage to property), will also
be liable for civil damages as
driving drunk is a willful and
conscious wrongful act,
strictly prohibited by law.
QUASI-DELICTS / TORTS
(5) QUASI-DELICTS / TORTS
(Obligation ex quasi-delicto or ex quasi-
maleficio) – Whoever by act or omission
causes damage to another, there being
fault or negligence, is obliged to pay for
the damage done. Such fault or
negligence, if there is no pre-existing
contractual relation between the parties,
is called a quasi-delict.
QUASI-DELICT
QUASI-DELICT- refers to
an act or omission which
causes damage to another,
there being fault or
negligence, and there is no
pre-existing contractual
relation between the parties.
REQUISITES OF QUASI-DELICT
(a) there must be an act or omission;

(b) such act or omission causes damage
to another;
(c) such act or omission is caused by
fault or negligence; and
(d) there is no pre-existing contractual
relation between the parties. (Chan, Jr. v.
Iglesia Ni Cristo, Inc., G.R. No. 160283,
October 14, 2005).
EXAMPLE OF QUASI-DELICTS
X broke the window of Y's car while
playing soccer. The accident would not
have happened had X played away from
the car of Y.
In this situation, X has the obligation to

pay the damage caused to Y although
there is no pre-existing contractual
relations between X and Y.
APPLICATION OF THE REQUISITES
(a)there must be an act or omission-

the act or omission is the damage to the
car window.
(b)such act or omission causes damage

to another-
the damage caused was the window of
the car was broken/damaged.
(c)such act or omission is caused by
fault or negligence-
The fault or negligence is when X
played soccer near the car of Y.
(d)there is no pre-existing contractual

relation between the parties-
X and Y do not know each other and
there was no agreement between
them.
REFERENCE
www.shutterstock.com
www.slideshare.com
Wikipedia
Cambridge dictionary
Youtube.com
E.O 209 (Family Code of the Philippines)
R.A. 386 (Civil Code of the Philippines)
www.google.com

II. General Provisions

Uploaded by

Copyright:

Available Formats

II. General Provisions

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

II. General Provisions

Uploaded by

Copyright:

Available Formats

II.

JURIDICAL NECESSITY – connotes

If X failed to do the bridal gown on

On or before December 2019 X need to

By August 15, 2019, the roof of Y

X and Y signed a contract

c) PRESTATION – (to give,

A juridical or legal tie

Duty of taxpayer (can be

These obligations are

These obligation shall be

While X has the obligation to support

(2) When the resources of

If Y failed to fulfill his obligation X

During work, Y found out that the

Y can only ask reimbursement of 5K which

Y cannot ask X to pay more than the 5K

negotiorum gestio-the act

This takes place when

(a) there must be an act or omission;

In this situation, X has the obligation to

(a)there must be an act or omission-

(b)such act or omission causes damage

(d)there is no pre-existing contractual

You might also like