ART. 1156.

An obligation is a juridical necessity Form of obligation

to give, to do or not to do. 1. General rule - law does not require any form
in obligations arising from contracts for their
Obligation – a juridical bond by virtue of which validity or binding force
one is bound in favor of another to render 2. Obligations arising from other sources (Art.
something 1157.) do not have any form at all
-relation established between one party and
another, where the latter is bound to the Obligation, right vs wrong? (Cause of Action)
fulfillment of a prestation which the former may (1) Obligation - is the act or performance which
demand of him/her the law will enforce.
(2) Right - is the power which a person has
Juridical necessity - Obligation is a juridical under the law, to demand from another any
necessity because in case of non-compliance, prestation.
the courts of justice may be called upon to (3) A wrong (cause of action) - is an act or
enforce its fulfillment or the debtor may be liable omission of one party in violation of the legal
for damages right or rights of another, causing injury to the
latter;
Nature of obligations under the Civil Code
Civil Obligations - Obligations which give to Essential elements of cause of action
the creditor or obligee a right of action in courts (a) a legal right in favor of a person
of justice to enforce their performance (creditor/plaintiff) by whatever means and under
Natural Obligations – based on equity and whatever law it arises or is created;
natural law and do not grant a right of action to (b) a correlative legal obligation on the part of
enforce their performance although in case of another (debtor/defendant) to respect or not to
voluntary fulfillment by the debtor, the latter may violate said right;
not recover what has been delivered or rendered (c) an act or omission in breach or violation of
said right by the defendant with consequential
Essential requisites of an obligation injury or damage to the plaintiff for which he may
(1) A passive subject (called debtor or maintain an action for the recovery of damages
obligor) or the person who is bound to the or other appropriate relief
fulfillment of the obligation; he who has a duty;
(2) An active subject (called creditor or -If any of these elements is absent - the
obligee) or the person who is entitled to demand complaint becomes vulnerable to a motion to
the fulfillment of the obligation; he who has a dismiss on the ground of failure to state a
right; cause of action
(3) Object or prestation (subject matter of the -A cause of action only arises when the last
obligation) or the conduct required to be element occurs, i.e., at the moment a right has
observed by the debtor. It may consist in giving, been transgressed
doing, or not doing. (see Art. 1232.) without the
prestation, there is nothing to perform. In Cause of action based upon a written
bilateral obligations (see Art. 1191.), the parties contract - should be brought within 10 years
are reciprocally debtors and creditors; and from the time the right of action accrues; The
(4) A juridical or legal tie (also called efficient accrual refers to the cause of action
cause) or that which binds or connects the -an action based on a contract accrues only
parties to the obligation. The tie in an obligation when an actual breach or violation occurs
can easily be determined by knowing the source -cause of action resulting from breach of
of the obligation contract is dependent on the facts of the case
Injury vs damage vs and damages (b) Negative personal obligation or
(1) Injury - the illegal invasion of a legal right; it obligation not to do (which naturally
is the wrongful act or omission which causes includes obligations “not to give”)
loss or harm to another,
Damage is the loss, hurt, or harm which results ART. 1157. Obligations arise from:
from the injury. (1) Law;
Damages - denote the sum of money (2) Contracts;
recoverable as amends for the wrongful act or (3) Quasi-contracts;
omission; (4) Acts or omissions punished by law; and
(2) Injury - the legal wrong to be redressed, (5) Quasi-delicts. (1089a)
while damages - compensation awarded or
recoverable for the damage or loss suffered. Sources of obligations.
(1) Law — when they are imposed by the law
Existence of one without the other. itself,
There may be injury without damage and (2) Contracts. — when they arise from the
damage without injury stipulation of the parties
(1) Proof of loss for injury. — A wrongful (3) Quasi-contracts. — when they arise from
violation of his legal right is not sufficient to lawful, voluntary and unilateral acts and which
entitle a person to sue another in a court for the are enforceable to the end that no one shall be
enforcement of said right. As a rule, there must unjustly enriched or benefited at the expense of
be, in addition, loss or damage caused to him by another
the violation of his right. But except for actual or (4) Crimes or acts or omissions punished by
compensatory damages (Art. 2199.), no law. — when they arise from civil liability which
pecuniary proof is necessary in order that moral, is the consequence of a criminal offense
nominal, temperate, liquidated, or exemplary (5) Quasi-delicts or torts. — when they arise
damages may be awarded. from damage caused to another through an act
(2) Liability for damages of a person for or omission, there being fault or negligence, but
exercising his legal rights. — A person has no contractual relation exists between the
the right to take all legal steps to enforce his parties
legal and/ or equitable rights. One who makes
use of his legal right does no injury. “Qui jure Sources classified - law enumerates five (5)
suo utitur mullum damnum facit”. If damage sources of obligations which are classified into:
results from a person’s exercising his legal (1) Those emanating from law; and
rights, it is “damnum absque injuria” (damage (2) Those emanating from private acts which
without injury) may be further subdivided into:
(a) those arising from licit acts, in the
Kinds of obligation according to subject case of contracts and quasi-contracts;
matter (b) those arising from illicit acts, which
(1) Real obligation (obligation to give) or that may be either punishable by law in the
in which the subject matter is a thing which the case of delicts, or not punishable in the
obligor must deliver to the obligee case of quasi-delicts.
(2) Personal obligation (obligation to do or -obligations arising from quasi-contracts, crimes,
not to do) or that in which the subject matter is and quasi-delicts are really imposed by law
an act to be done or not to be done
Kinds of Personal Obligation ART. 1158. Obligations derived from law are not
(a) Positive personal obligation or presumed. Only those expressly determined in
obligation to do or to render service (see this Code or in special laws are demandable,
Art. 1167.); and and shall be regulated by the precepts of the law
which establishes them; and as to what has not (4) Compliance in good faith - compliance or
been foreseen, by the provisions of this Book performance in accordance with the stipulations
or terms of the contract or agreement
Legal obligations - obligations arising from law; (5) Liability for breach of contract - law on
-They are not presumed because they are contracts recognizes the principle that actionable
considered a burden upon the obligor. They are injury inheres in every contractual breach
the exception, not the rule. To be demandable, - Interest may, in the discretion of the court, on
they must be clearly set forth in the law equitable grounds, be allowed upon damages
E.g. Civil Code or special laws; An employer has awarded for breach of contract
no obligation to furnish free legal assistance to (6) Preservation of interest of promise -
his employees because no law requires this, breach upon the contract confers upon the
and, therefore, an employee may not recover injured party a valid cause for recovering that
from his employer the amount he may have paid which may have been lost or suffered to
a lawyer hired by him to recover damages preserve the interest of the promisee of having
caused to said employee by a stranger or the benefit of his bargain
strangers while in the performance of his duties
ART. 1160. Obligations derived from quasi-
ART. 1159. Obligations arising from contracts contracts shall be subject to the provisions of
have the force of law between the contracting Chapter 1, Title XVII, of this Book.
parties and should be complied with in good faith
Quasi-contractual obligations - juridical
Contractual obligations. - obligations arising relation resulting from certain lawful, voluntary
from contracts or voluntary agreements and unilateral acts by virtue of which the parties
become bound to each other to the end that no
Contract - meeting of minds between two one will be unjustly enriched or benefited at the
persons whereby one binds himself, with respect expense of another.
to the other, to give something or to render some -not, properly, a contract at all because in a
service contract, there is a meeting of the minds or
-formal expression by the parties of their rights consent. In a quasi-contract, there is no
and obligations they have agreed upon with consent but the same is supplied by fiction of
respect to each other law
(1) Binding force - valid contracts have the -Quasi-contracts are governed by the Civil Code,
force of law between the parties who are bound more particularly, by Articles 2142-2175
to comply therewith in good faith, and neither
one may without the consent of the other, Kinds of quasi-contracts.
renege therefrom (1) Negotiorum gestio is the voluntary
(2) Requirements of a valid contract - contract management of the property or affairs of another
is valid (assuming all the essential elements are without the knowledge or consent of the latter.
present) if it is not contrary to law, morals, good (2) Solutio indebiti is the juridical relation which
customs, public order, and public policy is created when something is received when
-invalid or void if it is contrary to law, morals, there is no right to demand it and it was unduly
good customs, public order, or public policy delivered through mistake.
(3) Where contract requires approval by the
government. — required to be verified and ART. 1161. Civil obligations arising from criminal
approved by the government before it can take offenses shall be governed by the penal laws,14
effect subject to the provisions of Article 2177,15 and
e.g. contract for overseas employment must be of the pertinent provisions of Chapter 2,
approved by the POEA Preliminary Title on Human Relations,16 and of
Title XVIII of this Book, regulating damages.
 (2) There must be fault or negligence of the
Civil liability arising from crimes or delicts - defendant;
the commission of a crime may cause not only (3) There must be damage caused to the
moral evil but also material damage. From this plaintiff;
principle, the rule has been established that (4) There must be a direct relation or connection
every person criminally liable for a felony is also of cause and effect between the act or omission
civilly liable and the damage
(5) There is no pre-existing contractual relation
Reservation of right to recover civil liability - between the parties
only the civil liability arising from the offense
charged is deemed instituted with the criminal Crime vs Quasi-delict
action (1) In crime or delict, there is criminal or
unless the offended party waives the civil malicious intent or criminal negligence, while in
action, reserves his right to institute it separately, quasi-delict, there is only negligence;
or institutes the civil action prior to the criminal (2) Crime affects public interest, while quasi-
action. delict concerns private interest;
-The reservation and waiver referred to refer (3) In crime, there are generally two liabilities:
only to the civil action for the recovery of the civil criminal and civil, while in quasi-delict, there is
liability arising from the offense charged. This only civil liability;
does not include recovery of civil liability under (4) In crime or delict, the purpose is
Articles 32, 33, 34 and 2176 of the Civil Code of punishment, while in quasi-delict,
the Philippines arising from the same act or indemnification of the offended party;
omission which may be prosecuted separately (5) Criminal liability cannot be compromised or
even without a reservation settled by the parties themselves, while the
liability for quasi-delict can be compromised as
Scope of civil liability - governed by the any other civil liability;
Revised Penal Code and the Civil Code (6) In crime, the guilt of the accused must be
This civil liability includes: proved beyond reasonable doubt, while in
(1) Restitution; quasi-delict, the fault or negligence of the
(2) Reparation for the damage caused defendant need only be proved by
(3) Indemnification for consequential damages preponderance of evidence;
(7) In crime, the liability of the person
ART. 1162. Obligations derived from quasi- responsible for the author of the negligent act or
delicts shall be governed by the provisions of omission is subsidiary, while in quasi-delict, it is
Chapter 2, Title XVII of this Book, and by special direct and primary
laws
Recovery of damages twice for the same act
Obligations arising from quasi-delicts. or omission prohibited
Quasi-delict - act or omission by a person The two causes of action (ex delicto or ex quasi
(tort feasor) which causes damage to another in delicto) may be availed of subject to the caveat
his person, property, or rights giving rise to an (caution) that the offended party cannot recover
obligation to pay for the damage done, there damages twice for the same act or omission or
being fault or negligence but there is no pre- under both causes. Since these two (2) civil
existing contractual relation between the parties liabilities are distinct and independent of each
other, the failure to recover in one will not
Requisites of quasi-delict. necessarily preclude recovery in the other
(1) There must be an act or omission by the
defendant; Nature and Effects of Obligations
ART. 1163. Every person obliged to give (2) Another standard of care. — However, if the
something is also obliged to take care of it with law or the stipulation of the parties provides for
the proper diligence of a good father of a family, another standard of care (slight or extraordinary
unless the law or the stipulation of the parties diligence), said law or stipulation must prevail.
requires another standard of care. (1094a) (3) Factors to be considered. — The diligence
required depends upon the nature of the
-Provision refers to an obligation to give a obligation and corresponds with the
specific or determinate thing circumstances of the person, of the time, and of
the place.
Specific or determinate thing- a thing is said (4) Reason for debtor’s obligation. — The debtor
to be specific or determinate when it is must exercise diligence to insure that the thing
particularly designated or physically segregated to be delivered would subsist in the same
from all others of the same class condition as it was when the obligation was
E.G. The car sold by A to B contracted.

Generic or indeterminate thing - refers only to Duties of debtor in obligation to deliver a

a class or genus to which it pertains and cannot generic thing
be pointed out with particularity (1) To deliver a thing which is of the quality
E.g. a big dog intended by the parties taking into consideration
the purpose of the obligation and other
Specific thing vs. Generic thing circumstances (see Art. 1246.)
(1) A determinate thing is identified by its (2) To be liable for damages in case of fraud,
individuality. The debtor cannot substitute it with negligence, or delay, in the performance of his
another although the latter is of the same kind obligation, or contravention of the tenor thereof.
and quality without the consent of the creditor.
(Art. 1244.) ART. 1164. The creditor has a right to the fruits
(2) A generic thing is identified only by its of the thing from the time the obligation to deliver
specie. The debtor can give anything of the it arises. However, he shall acquire no real right
same class as long as it is of the same kind over it until the same has been delivered to him.

Duties of debtor in obligation to give a Different kinds of fruits - refer to natural,

determinate thing. industrial, and civil fruits.
(1) To preserve or take care of the thing due; (1) Natural fruits are the spontaneous products
(2) To deliver the fruits of the thing (see Art. of the soil, and the young and other products of
1164.); animals,
(3) To deliver its accessions and accessories e.g., grass; all trees and plants on lands
(see Art. 1166.); produced without the intervention of human
(4) To deliver the thing itself (see Arts. 1163, labor
1233, 1244; as to kinds of delivery, Arts. 1497 to (2) Industrial fruits are those produced by
1501.) lands of any kind through cultivation or labor,
(5) To answer for damages in case of non-fulfi e.g., sugar cane; vegetables; rice; and all
llment or breach. (see Art. 1170.) products of lands brought about by reason of
human labor
Obligation to take care of the thing due (3) Civil fruits are those derived by virtue of a
(1) Diligence of a good father of a family - obligor juridical relation,
has the incidental duty to take care of the thing e.g., rents of buildings
due with the diligence of a good father of a
family pending delivery Right of creditor to the fruits.
- the creditor is entitled to the fruits of the thing right, there is only a definite active subject
to be delivered from the time the obligation to without any definite passive subject.
make delivery of the thing arises
ART. 1165. When what is to be delivered is a
When obligation to deliver arises. determinate thing, the creditor, in addition to the
(1) the obligation to deliver the thing due and, right granted him by Article 1170, may compel
consequently, the fruits thereof, if any, arises the debtor to make the delivery.
from the time of the perfection of the contract If the thing is indeterminate or generic, he
*Perfection - refers to the birth of the contract may ask that the obligation be complied with at
or to the meeting of the minds between the the expense of the debtor.
parties If the obligor delays, or has promised to
(2) If the obligation is subject to a suspensive deliver the same thing to two or more persons
condition or period (Arts. 1179, 1189, 1193.), it who do not have the same interest, he shall be
arises upon fulfi llment of the condition or arrival responsible for any fortuitous event until he has
of the period effected the delivery. (1096)
(3) In a contract of sale, the obligation arises
from the perfection of the contract even if the Remedies of creditor in real obligation.
obligation is subject to a suspensive condition or (1) In a specific real obligation (obligation to
a suspensive period where the price has been deliver a determinate thing), the creditor may
paid exercise the following remedies or rights in case
(4) In obligations to give arising from law, the debtor fails to comply with his obligation:
quasi-contracts, delicts, and quasi-delicts, the (a) demand specifi c performance or fulfi
time of performance is determined by the specifi llment (if it is still possible) of the obligation with
c provisions of law applicable. a right to indemnity for damages; or
e.g. S sold his horse to B for P15,000.00. No (b) demand rescission or cancellation (in
date or condition was stipulated for the delivery certain cases) of the obligation also with a right
of the horse. While still in the possession of S, to recover damages (Art. 1170.); or
the horse gave birth to a colt. Who has the right (c) demand the payment of damages only
to the colt? (see Art. 1170.) where it is the only feasible
>>> In a contract of sale “all the fruits shall remedy.
pertain to the vendee from the day on which the (2) A generic real obligation (obligation to deliver
contract was perfected.” (Art. 1537, 2nd par.) a generic thing), on the other hand, can be
Hence, B is entitled to the colt. performed by a third person since the object is
expressed only according to its family or genus
Meaning of personal right and real right.
(1) Personal right is the right or power of a
person (creditor) to demand from another
(debtor), as a definite passive subject, the
fulfillment of the latter’s obligation to give, to do,
or not to do.
(2) Real right is the right or interest of a person
over a specific thing (like ownership, possession,
mortgage, lease record) without a definite
passive subject against whom the right may be
personally enforced.

Personal right vs Real right

While in personal right there is a definite active
subject and a definite passive subject, in real