TITLE 1 obligations.
They are to be distinguished from
OBLIGATIONS natural obligations which, not being based on
(Article 1156-1304, Civil Code) positive law but on equity and natural law, do
not grant a right of action to enforce their
Chapter 1 performance although in case of voluntary
GENERAL PROVISIONS fulfillment by the debtor, the latter may not
recover what has been delivered or rendered
Article 1156. An obligation is a juridical necessity by reason thereof. (Art.* 1423.)
to give, to do or not to do. (n) Natural obligations are discussed under the
Title dealing with “Natural Obligations.” (Title
Obligation III, Arts. 1423-1430.)
The term obligation is derived from the Latin Essential requisites of an obligation
word obligation which means tying or binding. Every obligation has 4 essential requisites namely:
It is a tie or bond recognized by law by virtue of 1. Passive subject (called debtor or obligor)
which one is bound in favor of another to The person who is bound to the
render something- and this may consist in fulfillment of the obligation; he who has
giving a thing, doing a certain act, or not doing a duty;
a certain act. 2. Active subject (called creditor or obligee)
The person who is entitled to demand
Civil Code Definition the fulfillment of the obligation; he who
Article 1156 gives the civil code definition of has a right;
obligation, in its passive aspect. It merely 3. Object or prestation (subject matter of the
stresses the duty under the law of debtor or obligation)
obligor (he who has the duty of giving doing or The conduct required to be observed by
not doing) when it speaks of obligation as a the debtor. It may consist in giving,
juridical necessity. doing, or not doing. Without the
prestation, there is nothing to perform.
Juridical Necessity In bilateral obligations (see Art. 1191.),
Obligation is a juridical necessity because in the parties are reciprocally debtors and
case of non-compliance, the courts of justice creditors;
may be called upon by the aggrieved party to 4. Juridical or legal tie (also called efficient cause)
enforce its fulfillment or, in default thereof, the That which binds or connects the
economic value that it represents. parties to the obligation. The tie in an
In a proper case, the debtor may also be made obligation can easily be determined by
liable for damages, which represent the sum of knowing the source of the obligation.
money given as a compensation for the injury (Art. 1157.)
or harm suffered by the creditor or obligee (he EXAMPLE:
who has the right to the performance of the Under a building contract, X bound himself to
obligation) for the violation of his rights. construct a house for Y for P1,000,000.00.
In other words, the debtor must comply with his Here, X is the passive subject, Y is the active subject,
obligation whether he likes it or not; otherwise, his the building of the house is the object or prestation, and
failure will be visited with some harmful or the agreement or contract, which is the source of the
undesirable legal consequences. If obligations obligation, is the juridical tie.
were not made enforceable, then people can Suppose X had already constructed the house and it
disregard them with impunity. There are, however, was the agreement that Y would pay X after the
obligations that cannot be enforced because they construction is finished. X, then, becomes the active
are not recognized by law as binding. subject and Y, the passive subject.
Nature of obligations under Civil Code Form of obligations.
Obligations which give to the creditor or Refers to the manner in which an obligation is
obligee a right of action in courts of justice to manifested or incurred. It may be oral, or in
enforce their performance are known as civil writing, or partly oral and partly writing.
1) As a general rule, the law does not require (2) Personal obligation (obligation to do or not
any form in obligations arising from to do) or that in which the subject matter is an
contracts for their validity or binding force. act to be done or not to be done.
(see Art. 1356.) There are thus two (2) kinds of personal obligation:
2) Obligations arising from other sources (Art. (a)Positive personal obligation or obligation
1157.) do not have any form at all. to do or to render service (see Art. 1167.)
Ex. X binds himself to repair the piano for Y.
Obligation, right, and wrong (cause of action)
distinguished. (b)Negative personal obligation is obligation
(1) Obligation is the act or performance which not to do (which naturally includes obligations
the law will enforce. “not to give”). (see Art. 1168.)
(2) Right, on the other hand, is the power Ex. X obliges himself not to build a fence on a
which a person has under the law, to demand from certain portion of his lot in favor of Y who is
another any prestation. entitled to a right of way over said lot.
(3) A wrong (cause of action), according to its
legal meaning, is an act or omission of one party in ART. 1157. Obligations arise from:
violation of the legal right or rights (i.e., recognized (1) Law;
by law) of another. In law, the term injury is also (2) Contracts;
used to refer to the wrongful violation of the (3) Quasi-contracts;
legalright of another. (4) Acts or omissions punished by law;
The essential elements of a legal wrong or and
injury are: (5) Quasi-delicts. (1089a)
Legal right in favor of a person
(creditor/plaintiff) by whatever means and Sources of obligations
under whatever law it arises or is created;
Correlative legal obligation on the part of (1) Law. — when they are imposed by the law
another (debtor/defendant) to respect or itself,
not to violate said right; and EXAMPLE. Obligation to pay taxes; obligation
Act or omission in breach or violation of to support one’s family (Art. 291);
said right by the defendant with (2) Contracts. — when they arise from the
consequential injury or damage to the stipulation of the parties (Art. 1306.)
plaintiff for which he may maintain an EXAMPLE. The obligation to repay a loan by
action for the recovery of damages or other virtue of an agreement;
appropriate relief. (3) Quasi-contracts. — when they 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 (Art. 2142.) In a sense, these
obligations may be considered arising from law.
EXAMPLE. the obligation to return money paid
by mistake or which is not due. (Art. 2154.) In
a sense, these obligations may be considered
as arising from law;
Kinds of obligation according to subject matter (4) Crimes or acts or omissions punished by
From the viewpoint of the subject matter, law. — when they arise from civil liability which
obligation may either real or personal is the consequence of a criminal offense (Art.
(1)Real obligation (obligation to give) or that in 1161.),
which the subject matter is a thing which the EXAMPLE. The obligation of a thief to return
obligor must deliver to the obligee. the car stolen by him; the duty of a killer to
Ex. X (e.g., seller) binds himself to deliver a indemnify the heirs of his victim; and
piano to Y (buyer)
Quasi-delicts or torts. — when they arise from damages caused to said employee by a stranger or
damage caused to another through an act or strangers while in the performance of his duties.
omission, there being fault or negligence, but (De la Cruz vs. Northern Theatrical Enterprises, 95
no contractual relation exists between the Phil. 739 [1954].)
parties (Art. 2176.), (2) A private school has no legal obligation to
EXAMPLE. The obligation of the head of a provide clothing allowance to its teachers because
family that lives in a building or a part thereof there is no law which imposes this obligation upon
to answer for damages caused by things schools. But a person who wins money in gambling
thrown or falling from the same (Art. 2193.); has the duty to return his winnings to the loser.
the obligation of the possessor of an animal to This obligation is pro- vided by law. (Art. 2014.)
pay for the damage which it may have caused.
(Art. 2183.) Under Article 1158, special laws refer to all other
laws not contained in the Civil Code. Examples of
Sources classified. such laws are Corporation Code, negotiable
The law enumerates five (5) sources of obligations. Instrument Law, insurance Code, National Internal
They may be classified as follows: Revenue Code, Revised Penl Code, Labor Code, etc.
(1)Those emanating from law; and
(2) Those emanating from private acts which ART. 1159. Obligations arising from contracts have
may be further subdivided into: the force of law between the contracting parties
(a) those arising from licit acts, in the case of and should be complied with in good faith.
contracts and quasi-contracts (infra); and (1091a)
(b) those arising from illicit acts, which may be
either punishable by law in the case of delicts Contractual obligations.
or crimes, or not punishable in the case of The above article speaks of contractual obligations
quasi-delicts or torts. (infra). or obligations arising from contracts or voluntary
Actually, there are only two (2) sources: law and agreements.
contracts, because obligations arising from quasi- A contract is a meeting of minds between two
contracts,delicts, and quasi-delicts are really persons whereby one binds himself, with
imposed by law. respect to the other, to give something or to
render some service. (Art. 1305.)
ART. 1158. Obligations derived from law are not (1) Binding force. — Obligations arising from
presumed. Only those expressly determined in contracts are governed primarily by the agreement
this Code or in special laws are demandable, and of the contracting parties.
shall be regulated by the precepts of the law i.e., they have same binding effect of
which establishes them; and as to what has not obligations imposed by laws. This does not
been fore- seen, by the provisions of this Book. mean, however, that contract is superior to
(1090) the law. As a source of enforceable obligation,
contract must be valid if t’s against the law.
Legal obligations. (2) Requirements of a valid contract- a
Article 1158 refers to legal obligations or contract is valid (assuming all the essential
obligations arising from law. They are not elements are present, Art. 1318.) if it is not
presumed because they are considered a contrary to law, morals, good customs, public
burden upon the obligor. They are the order, and public policy. It is invalid or void if it is
exception, not the rule. To be demandable, contrary to law, morals, good customs, public
they must be clearly set forth in the law, i.e., order, or public policy. (Art. 1306)
the Civil Code or special laws. Thus: In the eyes of the law, a void contract does not
(1) An employer has no obligation to furnish exist. (Art. 1409.) Consequently, no obligations will
free legal assistance to his employees because no arise. A contract may be valid but cannot be
law requires this, and, therefore, an employee may enforced. This is true in the case of unenforceable
not recover from his employer the amount he may contracts. (see Arts. 1317, 1403)
have paid a lawyer hired by him to recover
(3) Breach Contract.- a contract may be breached a contract, irrespective of their intention, to
or violated by a party in whole or in part. A breach prevent injustice or to the unjust enrichment of
of contract takes place when a party fails or refuses a person at the expense of another.
to comply , without legal reason or justification,
with his obligation under the contract as promised. Kinds of quasi-contracts.
The principal kinds of quasi-contracts are
Compliance in good faith. negotiorum gestio and solutio indebiti.
It means compliance or perfor- mance in (1)Negotiorum gestio is the voluntary
accordance with the stipulations or terms of management of the property or affairs of
the contract or agreement. Sincerity and another without the knowledge or consent of
honesty must be observed to prevent one party the latter. (Art. 2144.)
from taking unfair advantage over the other. EXAMPLE. X went to baguio with his family
Non-compliance by a party with his legitimate without leaving somebody to look after his
obligations afrter receiving the benefits of a house in Manila. While in Baguio, a big fire
contract would constitute unjust enrichment on broke out near the house of X. through the
his part. effort of Y, a neighbor, the house of X was
saved from being burned. Y, however, incurred
expenses.
In this case, X has the obligation to reimburse
Y for said expenses, altjough he did not
actually give his consent to the act of Y in
saving his house, on the principle of quasi
contract.
(2) Solutio indebiti is the juridical relation
which is created when something is received
when there is no right to demand it and it was
unduly delivered through mistake. (Art. 2154.)
The requisites are:
a. There is no right to receive the thing
delivered
b. The thing was deliverd through mistake.
EXAMPLE: C owes D P1000. If D paid T
ART. 1160. Obligations derived from quasi-
believing that T was authorized to received
contracts shall be subject to the provisions of
payment for C, the obligation to return on the
Chapter 1, Title XVII of this Book. (n)
part of T arises. If D paid C P2000 by mistake,
C must return the excess of P1000.
Quasi-contractual obligations.
Article 1160 treats of obligations arising from (3)Other cases. — Other examples of quasi-
quasi-contracts or contracts implied in law. contracts are provided in Article 2164 to Article
A quasi-contract is that juridical relation 2175 of the Civil Code. The cases that have
resulting from certain law- ful, voluntary and been classified as quasi-contracts are of infinite
unilateral acts by virtue of which the parties variety, and when for some reason recovery
become bound to each other to the end that no cannot be had on a true contract, recovery may
one will be unjustly enriched or benefited at be allowed on the basis of a quasi-contract.
the expense of another. (Art. 2142.)
It is not, properly, a contract at all. In a
contract, there is a meeting of the minds or
consent; the parties must have deliberately
entered into a formal agreement. In a quasi-
contract, there is no consent but the same is
supplied by fiction of law. In other words, the
law considers the parties as having entered into
ART. 1161. Civil obligations arising from criminal pre-existing contractual relation between the
offenses shall be governed by the penal laws,14 parties.21 (Art. 2176.)
subject to the provisions of Article 2177,15 and of
the pertinent provisions of Chapter 2, Preliminary Requisites of quasi-delict.
Title on Human Relations,16 and of Title XVIII of Before a person can be held liable for quasi-delict,
this Book, regulating damages. (1092a) the following requisites must be present:
(1) There must be an act or omission by the
Civil liability arising from crimes or delicts. defendant;
This article deals with civil liability arising from (2) There must be fault or negligence of the
crimes or delicts. defendant;
(3) There must be damage caused to the
plaintiff;
(4) There must be a direct relation or
connection of cause and effect between the act or
omission and the damage; and
(5) There is no pre-existing contractual
relation between the parties.
EXAMPLE. While playing softball with his
friends, X broke the window glass of Y, his
neightbor. The accident would not have
happened had they played a little farther
Scope of civil liability. from the house of Y
The extent of the civil liability for damages arising
In this case, X is under obligation to pay the
from crimes is governed by the Revised Penal Code
damage caused to Y by his act although
and the Civil Code. This civil liability includes:
there is no pre-existing contractual relation
(1) Restitution;
between them because he is guilty of fault
(2) Reparation for the damage caused; and
or negligence.
(3) Indemnification for consequential
damages. (Art. 104, Revised Penal Code.)
Crime distinguished from quasi-delict.
EXAMPLE. X stole the car of Y. If X is The following are the distinctions:
convicted, the court will order X: (1) to (1) In crime, there is criminal or malicious
return the car (or to pay its value if it was intent or criminal negligence, while in quasi-delict,
lost or destroyed); (2) to pay for any damage there is only negligence;
caused to the car; and (3) to pay such other (2) In crime, the purpose is punishment, while
damages suffered by Y as a consequence of in quasi-delict, indemnification of the offended
the crime. party.
(3) Crime affects public interest, while quasi-
ART. 1162. Obligations derived from quasi-delicts delict concerns private interest;
shall be governed by the provisions of Chapter 2, (4) In crime, there are generally two liabilities:
Title XVII of this Book, and by special laws. criminal and civil, while in quasi-delict, there is only
(1093a) civil liability;
(5) Criminal liability can not be compromised or
Obligations arising from quasi-delicts. settled by the parties themselves, while the liability
The above provision treats of obligations arising for quasi-delict can be compromised as any other
from quasi-delicts or torts. (see Arts. 217619 to civil liability;
2194.) (6) In crime, the guilt of the accused must be
A quasi-delict is an act or omission by a person proved beyond rea- sonable doubt, while in quasi-
(tort feasor) which causes damage to another delict, the fault or negligence of the de- fendant
in his person, property, or rights giving rise to need only be proved by preponderance of
an obligation to pay for the damage done, evidence.
there being fault or negligence but there is no
CHAPTER 2 But if S’s obligation is to deliver to B a particular
NATURE AND EFFECT OF OBLIGATIONS watch, the one S is wearing, S cannot substitute it
with another watch without B’s consent nor can B
ART. 1163. Every person obliged to give require S to deliver another watch without S’s
something is also obliged to take care of it with consent although it may be of the same kind and
the proper diligence of a good father of a family, value. (see Arts. 1244, 1246.)
unless the law or the stipulation of the parties (2) If S’s obligation is to deliver to B one of his
requires another standard of care. (1094a) cars, the object refers to a class which in itself is
determinate.
Meaning of specific or determinate thing. Here, the particular thing to be delivered is
The above provision refers to an obligation to give determinable without the need of a new contract
a specific or determinate thing. between the parties (see Art. 1349.); it becomes
A thing is said to be specific or determinate determinate upon its delivery.
when it is particularly designated or physically
segregated from all others of the same class. Duties of debtor in obligation to give a
(Art. 1459.) determinate thing.
EXAMPLES: They are:
(1) The watch I am wearing. (1) To preserve the thing- in obligations to give
(2) The car sold by X. (real obligations), the obligor has the incidental
(3) My dog named “Terror.” duty to take care of the thing due with the
(4) The house at the corner of Rizal and Del diligence of a good father of a family pending
Pilar Streets. delivery.
(5) The Toyota car with Plate No. AAV 344. a) Diligence of a good father of a family- the
(6) This cavan of rice. phrase has been equated with ordinay care
(7) The money I gave you. or that diligence which an average (a
reasonably prudent) person exercises over
Meaning of generic or indeterminate thing. his own property.
A thing is generic or indeterminate when it b) Another standard of care- however, if the
refers only to a class or genus to which it law or the stipu- lation of the parties
pertains and cannot be pointed out with provides for another standard of care (slight
particularity. or extraordinary diligence), said law or
EXAMPLES: stipulation must prevail. (Art. 1163.)
(1) a Bulova calendar watch. Under the law, for instance, a
(2) the sum of P1,000. common carrier (person or company
(3) a 1995 toyota car engaged in the transportation of persons
(4) a cavan of rice. and/or cargoes) is “bound to carry the
(5) a police dog. passengers safely as far as human care and
foresight can provide, using utmost
Specific thing and generic thing distinguished. (extraordinary) diligence of very cautious
(1) A determinate thing is identified by its persons, with a due regard for all the
individuality. The debtor cannot substitute it with circumstances.” (Art. 1755.) In case of
another although the latter is of the same kind and accident, therefore, the common carrier will
quality without the consent of the creditor. (Art. be liable if it exercised only ordinary
1244.) diligence or the diligence of a good father of
(2) A generic thing is identified only by its a family.
specie. The debtor can give anything of the same The parties may agree upon
class as long as it is of the same kind. diligence which is more or less than that of
EXAMPLES: a good father of a family, it is contrary to
(1) If S’s obligation is to deliver to B a Bulova public policy (see Art. 1306.) to stipulate for
calendar watch, S can deliver any watch as long as absolute exemption from liability for any
it is Bulova with calendar. fault or negligence. (see Arts. 1173, 1174.)
c) Factors to be considered. — The diligence (1) To deliver a thing which is of the quality
required depends upon the nature of the intended by the parties taking into
obligation and corresponds with the consideration the purpose of the obligation and
circumstances of the person, of the time, other circumstances (see Art. 1246.); and
and of the place. (Art. 1173.) It is not (2) To be liable for damages in case of fraud,
necessarily the standard of care one always negligence, or delay, in the performance of his
uses in the protection of his own property. obligation, or contravention of the tenor
As a general rule, the debtor is not liable if thereof. (see Art. 1170.)
his failure to preserve the thing is not due
to his fault or negligence but to fortuitous ART. 1164. The creditor has a right to the fruits of
events or force majeure. (Art. 1174.) the thing from the time the obligation to deliver it
EXAMPLE: arises. However, he shall acquire no real right
over it until the same has been delivered to him.
(1095)
Different kinds of fruits.
The fruits mentioned by the law refer to natural,
industrial, and civil fruits.
(1)Natural fruits are the spontaneous products of
the soil, and the young and other products of
animals, e.g., grass; all trees and plants on lands
produced without the intervention of human
labor.
(2)Industrial fruits are those produced by lands of
any kind through cultivation or labor, e.g., sugar
cane; vegetables; rice; and all products of lands
d) Reason for debtor’s obligation. — The brought about by reason of human labor.
debtor must exercise diligence to insure
that the thing to be delivered would subsist (3)Civil fruits are those derived by virtue of a
in the same condition as it was when the juridical relation, e.g., rents of buildings, price of
obligation was contracted. Without the leases of lands and other property and the
accessory duty to take care of the thing, the amount of perpetual or life annuities or other
debtor would be able to afford being similar income. (Art. 442.)
negligent and he would not be liable even if
the property is lost or destroyed, thus Right of creditor to the fruits.
rendering illusory the obligation to give. (8 The creditor is entitled to the fruits of the thing
Manresa 35-37.) to be deliv- ered from the time the obligation
to make delivery of the thing arises. The
(2) To deliver the fruits of the thing (see Art. intention of the law is to protect the interest of
1164.); the obligee should the obligor commit delay,
(3) To deliver its accessions and accessories purposely or otherwise, in the fulfillment of his
(see Art. 1166.); obligation.
(4) To deliver the thing itself (see Arts. 1163, When obligation to deliver arises.
1233, 1244; as to kinds of delivery, Arts. 1497 to (1) Generally, the obligation to deliver the thing
1501.); and due and, conse- quently, the fruits thereof, if
(5) To answer for damages in case of non- any, arises from the time of the perfection of
fulfillment or breach. (see Art. 1170.) the contract. Perfection in this case refers to
the birth of the contract or to the meeting of
Duties of debtor in obligation to deliver a generic the minds between the parties. (Arts. 1305,
thing. 1315, 1319.)
They are:
(2) If the obligation is subject to a suspensive Personal right and real right distinguished.
condition or period (Arts. 1179, 1189, 1193.), it While in personal right there is a definite active
arises upon fulfillment of the condition or subject and a definite passive subject, in real
arrival of the period. However, the parties may right, there is only a definite active subject
make a stipulation to the contrary as regards without any definite passive subject.
the right of the creditor to the fruits of the A personal right is, therefore, binding or
thing. enforceable only against a particular person
(3) In a contract of sale, the obligation arises while a real right is directed against the whole
from the perfection of the contract even if the world.
obligation is subject to a suspensive condition EXAMPLE:
or a suspensive period where the price has X is the owner of a parcel of land under a
been paid. torrens title registered in his name in the Registry
(4) In obligations to give arising from law, of Property. His ownership is a real right directed
quasi-contracts, delicts, and quasi-delicts, the against everybody. There is no definite passive
time of performance is determined by the subject.
specific provisions of law applicable. If the land is claimed by Y who takes
EXAMPLE: possession, X has a personal right to recover from
S sold his horse to B for P15,000.00. No date or Y, as a definite passive subject, the property.
condition was stipulated for the delivery of the If the same land is mortgaged by X to Z, the
horse. While still in the possession of S, the horse mortgage, if duly registered, is binding against third
gave birth to a colt. persons. A purchaser buys the land subject to the
Who has the right to the colt? mortgage which is a real right.
In a contract of sale “all the fruits shall pertain
to the vendee from the day on which the contract
was perfected.” (Art. 1537, 2nd par.) Hence, B is
entitled to the colt. This holds true even if the
delivery is subject to a suspensive condition (see
Art. 1179; e.g., upon the demand of B) or a
suspensive period (see Art. 1193; e.g., next month)
if B has paid the purchase price.
But S has a right to the colt if it was born
before the obligation to deliver the horse has
arisen (Art. 1164.) and B has not yet paid the
purchase price. In this case, upon the fulfillment of
the condition or the arrival of the period, S does
not have to give the colt and B is not obliged to pay
legal interests on the price since the colt and the
interests are deemed to have been mutually
compensated. (see Art. 1187.)
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.
