Module 1 - Topic No. 1 - Part1

Introduction to
Obligation
Meaning of Obligation
• The term obligation is derived from the Latin word obligatio
which means tying or binding.
• It is a tie or bond recognized by law by virtue of which one is
bound in favor of another to render something- and this may
consist in giving a thing, doing a certain act, or not doing a
certain act.
Civil Code definition of Obligation
Under the New Civil Code,
Article 1156. An obligation is a juridical necessity to give, to
do or not to do.
• An obligation is a legal duty, however created, the violation of

which may become the basis of an action of law
Meaning of Juridical Necessity
Obligation is a juridical necessity because in case of noncompliance,
the courts may be called upon by the aggrieved party to enforce its
fulfillment or, in default thereof, the economic value that it represents. In
a proper case, the debtor may also be made liable for damages, which
represents the sum of money given as a compensation for the injury or
harm suffered by 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 obligation whether he
likes it or not; otherwise, his failure will be visited with some harmful or
undesirable consequences. If obligations were not made enforceable,
then people can disregard them with impunity. If an obligation cannot
be enforced, it may be only a natural obligation.
Definition of Obligation
“An obligation is a juridical relation whereby a person (called the
creditor) may demand from another (called the debtor) the
observance of a determinative conduct (the giving, doing, or not
doing), and in case of breach, may demand satisfaction from the
assets of the latter.”
Essential Requisites of an Obligation
Every obligation has four definite elements, without which no obligation can
exist, to wit:
1) A passive subject (called debtor or obligor) – the person who is bound to the
fulfillment of the obligation; he who has a duty;
2) An active subject (called creditor or obligee) – the person who is entitled to
demand the fulfillment of the obligation; he who has the right;
3) Object or prestation (subject matter of the obligation) – the conduct
required to be observed by the debtor. It may consist in giving, doing, or not
doing. Without the prestation, there is nothing to perform. In bilateral
obligations, the parties are reciprocally debtors and creditors; and
4) A juridical or legal tie (also called efficient cause) – that which binds or
connects the parties to the obligation. The tie in an obligation can easily be
determined by knowing the sources of the obligation.
It is important to identify the prestation in a certain obligation. Once
the prestation is identified, you can determine who the passive subject
is whom the active subject can demand fulfillment of the obligation
Kinds of prestation
1. To give- consist in the delivery of a movable or immovable thing in
order to create a real right or for the use of the recipient or for its
simple possession or in order to return to its owner
2. To do- all kinds of work or services, whether mental or physical.
3. Not to do- consist in abstaining from some act, includes “not to
give.” both being negative obligations
A contract of sale and a contract of loan are examples of prestations
to give; A contract of labor or a service contract is an example of a
prestation to do.
To illustrate
In an obligation to pay taxes, the passive subject is the taxpayer,
the active subject is the government through the Bureau of Internal
Revenue, the prestation is ―to give,‖ specifically to pay taxes, the
juridical tie is a source of obligation arising from law.
In an obligation to give products, the passive subject is the seller,
the active subject is the buyer, the prestation is ―to give,‖
specifically to deliver products, and the juridical tie is a source of
obligation arising from contract.
For Example
Under a building contract, A bound himself to build a house for B,
for ₱ 1,000,000.00
In the given example, it can be inferred that:
• A is the passive subject
• B is the active subject
• The building of the house is the object or prestation.
• The agreement or contract, which is the source of the obligation is the
juridical tie.

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Introduction to

• An obligation is a legal duty, however created, the violation of

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