1.
Discuss the concept of obligation
● An obligation is a juridical necessity to give, to do, or not to do.
● Juridical necessity: because in case of non-compliance, the courts of justice may be called upon
to enforce its fulfillment.
2. Is the definition in Art. 1156 complete?
● No. It only defines obligation in the perspective of the debtor/obligor.
3. Elements of an obligation (JAPO)
1. Vinculum Juris / juridical tie
i. That which binds the parties to the obligation
ii. The efficient cause established by the sources of obligation (LCQAQ)
2. Active subject (obligee/creditor): can demand the fulfillment of the obligation
3. Passive subject (obligor/debtor): against whom the obligation is demandable
4. Object
i. The prestation or conduct required to be observed (such as to give, to do, or not to
do)
4. Requisites of a valid object
● Lawful, determinate, within the commerce of man
5. I give you 5 pesos to do something. Is this valid?
● No? No valid object. “Something” is too vague in order for the obligor to determine the conduct
which he is required to do??
6. Law as a source of obligation
● Article 1158. Obligations derived from law are not presumed. Only those expressly determined in
this Code or 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 Book.
7. When do we say that the law itself is the source of obligation.
● When the law establishes the obligation and the act or condition upon which it is based is
nothing more than a factor for determining the moment when it becomes demandable, then the
law itself is the source of the obligation.
● When the law merely acknowledges the existence of an obligation generated by an act which
may constitute a contract, quasi-contract, criminal offense or quasi-delict, and its only purpose is
to regulate such obligation, then the act itself is the source of the obligation and not the law
(JURADO).
8. Other obligations created by law
● Ano to??
9. Contract as a source of obligation
● Article 1159. Obligations arising from contracts have the force of law between the contracting
parties and should be complied with in good faith.
10. What is a contract?
● Article 1305. 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.
11. Limitations in contracts
● Article 1306. The contracting parties may establish such stipulations, clauses, terms and
conditions as they may deem convenient, provided they are not contrary to law, morals, good
customs, public order, or public policy. (di ko sure if ito na yun hahaha)
12. What is a quasi-contract?
● Article 2142. Certain lawful, voluntary and unilateral acts give rise to the juridical relation of
quasi-contract to the end that no one shall be unjustly enriched or benefited at the expense of
another.
13. Gave consent to the contract. Is there a quasi-contract?
● No. A quasi-contract is a unilateral contract created by the sole act/s of the gestor; no express
consent given by the other party.
● The consent needed is provided by law through presumption (PINEDA)
14. Concept of delict
● Article 1161. Civil obligations arising from criminal offenses shall be governed by the penal laws
● Every person criminally liable for a felony is also civilly liable (Art. 100, RPC)
○ Reason: crime has dual character: offense against the state and offense against the
private person.
15. If accused was acquitted of a crime, can the accused be still liable for damages/civil liability?
● Yes. Article 29. When the accused in a criminal prosecution is acquitted on the ground that his
guilt has not been proved beyond reasonable doubt, a civil action for damages for the same act
or omission may be instituted.
● However, if criminal liability was extinguished on the ground that the accused was NOT THE
AUTHOR of the acts complained of as a felony, no civil liability arises.
16. Concept of quasi-delict
● Article 2176. 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 and is governed by
the provisions of this Chapter.
● Requisites:
○ Damages suffered by the plaintiff
○ Fault or negligence of the defendant
○ Connection of cause and effect between the fault or negligence of the defendant and the
damages incurred by the plaintiff.
17. Any other source?
● Parang na-tackle na lahat?
● Note that the list is exclusive
18. Classifications of obligations
● ***See page 220 (technically 187) of 2018 memaid for full discussion*** pero nvm tinanong na ni
sir lahat sa subsequent qs haha
● As to viewpoint of sanction
○ Civil obligations
○ Natural obligations
○ Moral obligations
● Viewpoint of performance
○ Positive obligation
○ Negative obligation
● Viewpoint of subject matter
○ Personal obligation
○ Real obligation
■ Determinate / specific
■ Indeterminate / generic
■ Limited generic
● As to efficacy? (see mentioned reference)
○ What is a natural obligation?
○ Distinguish natural and civil obligation
■ (1) A civil obligation is based on positive law, while a natural obligation is based
on equity and natural law; and
■ (2) The former is enforceable in courts of justice, while the latter is not.
■ A civil obligation is one which has a binding force in law, and which gives to the
obligee or creditor the right of enforcing it against the obligor or debtor in a court
of justice. This is the obligation which is defined in Art. 1156 of the Code
■ A natural obligation is one which cannot be enforced by action, but which is
binding on the party who makes it in conscience and according to the natural law.
● Thus, when an action has prescribed in accordance with the statute of
limitations, a natural obligation still subsists, although the civil obligation
is extinguished
○ What is a moral obligation?
■ Those that are not demandable in law, but only in conscience.
■ Note: Although the terms “natural obligations’’ and “moral obligations’’ are used
interchangeably in this jurisdiction, strictly speaking, there are two essential
differences between the two. They are:
● (1) in natural obligations there is a juridical tie between the parties which
is not enforceable by court action, while in moral obligations there is no
juridical tie whatsoever, and
● (2) voluntary fulfillment of natural obligations by the obligor produces
legal effects which the courts will recognize and protect, while voluntary
fulfillment of moral obligations, on the other hand, does not produce any
legal effect which courts will recognize and protect.
19. Moral obligations can be enforced in court?
● No. Moral obligations are those that are NOT demandable in law, but only in conscience.
● Example of moral obligation?
20. As to the relations created?
● It may be unilateral or bilateral
● Difference between the two?
○ Unilateral: unilateral, where only one party is bound
○ Bilateral, where both parties are mutually or reciprocally bound.
● Difference between reciprocal and bilateral/mutual obli?
○ Parties may be mutually obliged to each other, but the prestations of these obligations
are not necessarily reciprocal.
○ The reciprocal prestations must necessarily emanate from, the same case that gave rise
to the existence of the contract (TOLENTINO. Lakas maka-cite mermaid lang naman
galing hahahah)
● What kind of contract is a donation?
21. As to the number of parties involved?
● Joint and solidary
● Difference between joint and solidary obli?
○ Joint: each of the creditors is entitled to demand the payment of only a proportionate
part of the credit, while each of the debtors is liable for the payment of only a
proportionate part of the debt.
○ Solidary: each of the creditors is entitled to demand the payment of the entire credit,
while each of the debtors is liable for the payment of the entire debt.
● GR: obligation is joint.
● Exceptions: solidary when the obligation expressly so states, or when the law or the nature of the
obligation requires solidarity.
● What are the kinds of obligations as to the number of prestations?
○ Alternative and facultative
■ Alternative: juridical relations which comprehend several objects or prestations
which are due, but the payment or performance of one of them would be
sufficient.
■ Facultative: juridical relations where only one object or prestation has been
agreed upon by the parties to the obligation, but the obligor may deliver or render
another in substitution.
○ What is a conjunctive obligation? Alternative?
■ Multiple obligations may be conjunctive, when all of the undertakings are
demandable at the same time, or distributive, when only one undertaking out of
several is demandable.
■ Distributive obligations, on the other hand, may be alternative, when the obligor
is allowed to choose one out of several obligations which may be due and
demandable, or facultative, when the obligor is allowed to substitute another
obligation for one which is due and demandable.
22. What is a positive and negative obligation?
● Positive, when the obligor is obliged to give or do something;
● Negative, when the obligor must refrain from giving or doing something.
23. Real and personal?
● Real, when the obligation consists in giving something;
● Personal, when the obligation consists in doing or not doing something.
24. Specific v. Generic
● Specific
○ Article 1460. A thing is determinate when it is particularly designated or physical
segregated from all others of the same class.
The requisite that a thing be determinate is satisfied if at the time the contract is entered
into, the thing is capable of being made determinate without the necessity of a new or
further agreement between the parties.
● Generic
○ Designated merely by its class or genus without any particular designation or physical
segregation from all others of the same class.
25. Principal and accessory?
● Principal, when it is the main undertaking;
● Accessory, when it is merely an undertaking to guarantee the fulfillment of the principal obligation.
26. Instantaneous obligation?
● Omg ano to??? Feeling ko pure? Immediately demandable ganern.
Additional notes:
Obligations as to perfection and extinguishment
(a) Pure — when the obligation is not subject to any condition or term and is immediately demandable.
(b) Conditional — when the obligation is subject to a condition which may be suspensive, in which case
the happening or fulfillment of the condition results in the birth of the obligation, or resolutory, in which
case the happening or fulfillment of the condition results in the extinguishment of the obligation.
(c) With a term or period (a plazo) — when the obligation is subject to a term or period which may be
suspensive or from a day certain, in which case the obligation is demandable only upon the expiration of
the term, or resolutory or to a day certain, in which case the obligation terminates upon the expiration of
the term.
27. Basic rules that govern the manner of performing an obligation
● Specific:
○ To deliver the thing which he has obligated himself to give
○ To take care of the thing with the proper diligence of a good father of a family
○ To deliver all accessions and accessories
○ To pay damages in case of breach
● Generic:
○ To deliver a thing which must be neither of superior nor inferior quality.
○ To pay damages in case of breach.
28. Identity of obligation
● Only the prestation agreed upon and no other must be complied with.
29. Integrity of obligation
● Comepleteness of performance.
30. Standard of performance of obligation
● Article 1163. Every person obliged to give something is also obliged to take care of it with the
proper diligence of a good father of a family, unless the law or the stipulation of the parties
requires another standard of care.
● Article 1173 (2): If the law or contract does not state the diligence which is to be observed in the
performance, that which is expected of a good father of a family shall be required.
● Common carrier
○ Article 1733. Common carriers, from the nature of their business and for reasons of
public policy, are bound to observe extraordinary diligence in the vigilance over the goods
and for the safety of the passengers transported by them, according to all the
circumstances of each case.
31. Example of obligation to deliver a specific thing?
● Car with plate number
● Blue car belonging to X
32. In obligation to deliver a determinate car with place number ganyan, are there accessory
obligations?
● Yes.
● Obligation to take care of the thing
○ Article 1163. Every person obliged to give something is also obliged to take care of it with
the proper diligence of a good father of a family, unless the law or the stipulation of the
parties requires another standard of care.
● Obligation to deliver the fruits (Art. 1164, see next number)
● Obligation to deliver accessions and accessories
○ Article 1166. The obligation to give a determinate thing includes that of delivering all its
accessions and accessories, even though they may not have been mentioned.
33. What is the rule on delivery of the fruits?
● Article 1164. The creditor has a right to the fruits of the thing from the time the obligation to
deliver it arises. However, he shall acquire no real right over it until the same has been delivered
to him.
34. Ano ang treatment natin sa fruits of the thing, say car? Meron bang fruits ang car? What is
your understanding of fruits?
● Fruits may pertain to natural, industrial, and civil fruits
○ Natural fruits are the spontaneous products of the soil, and the young and other products
of animals.
○ Industrial fruits are those produced by lands of any kind through cultivation or labor.
○ Civil fruits are the rents of buildings, the price of leases of lands and other property and
the amount of perpetual or life annuities or other similar income (Article 442).
● Parang walang fruits ang car?
35. What is the treatment of fruits if the obligation is reciprocal?
● But if it is unilateral?
● May difference ba? Ang sabi lang “the obligation to deliver arises from the perfection of the
contract”.
● Both naman ata is perfected upon the meeting of the minds. Difference lang is as to the
prestration (kung sino at if both ba may obligation?)
36. Paano naman pag generic thing?
● Illustration of an obligation to deliver a generic thing
○ Delivery of a car / horse / 100 sacks of rice etc.
● Are there accessory obligations?
○ None.
37. Obligation to do? How will you perform that?
A. Example of obligation to do? Obligation of an auto company to repair the damaged car of the
buyer
B. Failure of obligation to do: can you compel obligor to do?
Article 1167. If a person obliged to do something fails to do it, the same shall be executed at his cost.
This same rule shall be observed if he does it in contravention of the tenor of the obligation. Furthermore,
it may be decreed that what has been poorly done be undone
38. How about an obligation not to do? How will you perform that?
Article 1168. When the obligation consists in not doing, and the obligor does what has been forbidden
him, it shall also be undone at his expense
A. Can the obligation be delegated to another person? An obligation not to do cannot be
delegated
B. Failure of obligation not to do
The same shall be undone at his expense
C. Can there be accessory obligations? If obligation is determinate, then it includes delivering all of
its accessions even though they may not have been expressly mentioned ???
39. What are the different modes of breach of obligation?
There are four types of breaches
A. Minor breach
B. Material breach
C. Fundamental breach
D. Anticipatory breach
A minor or partial breach is when the non-breaching party of the contract is not entitled to an order for
performance of its obligations but only to collect the damages for which they are owed. For instance, if a
homeowner hires a contractor to install new windows in a home and asks for wind resistant windows but
the contractor uses windows that aren’t wind resistant the homeowner will ask the contractor for damages
incurred. Since there is no difference in value between the two windows, the homeowner will not be
awarded any damages. If there was a difference between the two windows then the homeowner would
have been awarded damages that amount to the difference between the two windows.
A material breach is when there is a failure to perform a part of a contract that permits the other party of
the contract to ask for damages because of the breach that has occurred. For example, if the contractor
mentioned above uses windows that aren’t wind resistant and the windows break, the homeowner can
collect damages for replacing the windows with the wind resistant ones
A fundamental breach of a contract is when the person that has had the contract breached against can
sue the breaching party for damages incurred as well as terminate the contract if they wish to do so.
An anticipatory breach of a contract is when the non-breaching party realizes that the other party of the
contract will fail to perform his or her part of the contract in the future and can terminate the contract and
sue for damages before the breach happens.
40. What is fraud?
According to Manresa, fraud or dolo consists in the conscious and intentional proposition to evade the
normal fulfillment of an obligation.
41. Extent of liability for malice
A. Malice in the execution of contracts, in performance of obligations?
Performance of a pre-existing obligation Perfection of contract
Present only during the performance of a Present only at the time of the birth of the
pre-existing obligation obligation
Employed to evade the normal fulfillment Employed to secure the consent of the
of an obligation other party to enter into the contract
Results in non-fulfillment or breach of the Results in vitiation of consent
obligation
Gives rise to a right to recover damages Gives rise to a right to ask for the
from the debtor annulment of the contract if the fraud is
causal (dolo causante) or to recover
damages if it is incidental (dolo incidente).
B. What kind of damages? According to FEBTC vs. CA, it shall comprehend ALL DAMAGES which
may be reasonably attributed to the breach or nonfulfillment of the obligation, regardless of
whether such consequences are NATURAL, UNNATURAL, PROBALE OR IMPROBABLE,
FORESEEABLE OR UNFORSEEABLE. In addition to such damages, the obligee can ALSO
RECOVER MORAL AND EXEMPLARY DAMAGES (p. 64, Jurado).
I. Can there be exemplary damages? Yes.
Article 2201. In contracts and quasi-contracts, the damages for which the obligor who acted in good faith
is liable shall be those that are the natural and probable consequences of the breach of the obligation,
and which the parties have foreseen or could have reasonably foreseen at the time the obligation was
constituted.
In case of fraud, bad faith, malice or wanton attitude, the obligor shall be responsible for all damages
which may be reasonably attributed to the non-performance of the obligation.
42. Can you renounce your action based on future fraud? No. Any waiver of an action for future fraud
is void.
43. How about fraud which has been committed already, can right of action be waived? Yes.
Prohibition only refers to future fraud.
44. Extent of the liability? Same as in 41? Liable for ALL DAMAGES?
A. Will it cover only what was at the mind of the debtor at the time of the fraud or includes
unimaginable consequences of the fraudulent act?
45. Distinction between fraud in the constitution and performance of an obligation?
Fraud in the constitution is one which induces another to enter into the said obligation. It is present at the
time of the birth of the obligation. Whereas in the latter, it is present during the performance of the
obligation (p. 63, Jurado).
46. What is negligence?
Article 1173. Negligence of the obligor consists in the omission of that diligence which is required by the
nature of the obligation and corresponds with the circumstances of the persons, of the time and of the
place. When negligence shows bad faith, the provisions of articles 1171 and 2201, paragraph 2, shall
apply.
47. What is the degree of diligence required in an obligation?
Article 1163. Every person obliged to give something is also obliged to take care of it with the proper
diligence of a good father of a family, unless the law or the stipulation of the parties requires another
standard of care.
48. Culpa contractual vs. Culpa aquiliana
As to relationship of the parties, In culpa contractual, there is a pre existing contractual relations. In culpa
aquiliana there may or may not be a pre existing contractual relations.
As to the character of negligence, In culpa contractual, negligence of the defendant is merely an incident
in the performance of an obligation. In culpa aquiliana, negligence of defendant is substantive and
independent.
As to source of liability, In culpa contractual, source of liability is the breach of contract; in culpa aquiliana
source of liability is defendant’s act or omission.
In culpa contractual, liability the employer is based on the principle that - the negligence of the employee
is conclusively presumed to be the negligence of the employer - primarily liable; In culpa aquiliana, the
negligence of the employee is prime facie presumed to be the negligence of the employer - subsidiary
As to the availability of due diligence as a defense, in culpa contractual, proof of diligence in the selection
of employees is not a defense. In culpa aquiliana, it is.
49. Culpa contractual, is there a need to prove negligence or is it presumed?
There is presumption of negligence
50. How about in aquiliana? No presumption. Negligence of the defendant must be proven.
51. Can you ask for moral damages?
A. Aquiliana? Yes.
B. Contractual? In culpa contractual, moral damages may be recovered where the defendant is
shown to have acted in bad faith or with malice in the breach of the contract.
52. How about defense of diligence?
In culpa contractual, defense of a good father of a family is NOT a complete and proper defense in the
selection and supervision of the employees. (Cangco vs. MRC). In Culpa Aquiliana, defense of a good
father of a family is a complete defense insofar as parents, guardians, employers are concerned. (Art.
2180 last par).
53. In case of vehicular accidents. Yung isa may passenger, tas may nadamay na pedestrian. Can
there be several causes of action against the driver?
Yes. Insofar as the passenger and the driver is concerned, there is a breach of contract of carriage. As to
the pedestrian and the driver, obligation is a quasi-delict. (not sure????)
54. Culpa criminal ng driver, is the liability of the company the same in culpa aquiliana? In what
respect is it different?
In culpa criminal, the negligence of the employee is conclusively presumed to be the negligence of the
employer - primarily liable; In culpa aquiliana, the negligence of the employee is prime facie presumed to
be the negligence of the employer - subsidiary. ????
Differences:
Culpa criminal is imposed only if there is a penal law covering them, while quasi-delict or culpa aquiliana
includes all acts in which any kind of fault or negligence intervenes. Hence, the latter is broader in
concept.
Culpa criminal affects public interest, while culpa aquiliana or quasi-delitos are only of private concern.
Culpa criminal punishes and corrects the criminal act, while culpa aquiliana by means of indemnification,
merely repairs the damage.
55. What is delay?
Delay or default or mora is the non fulfillment of an obligation with respect to time. It is when someone
does not fulfill an obligation within the time given unto him.
There are three kinds of delay namely:
I. Mora solvendi - it is a delay on the part of the debtor
a. Ex re - delay in real obligations (to give)
b. Ex persona - delay in personal obligations (to do)
II. Mora accipiendi - it is a delay on the part of the creditor
III. Compensatio morae - it is a delay in reciprocal obligations. It is therefore the creditor and debtor who
are in default. If both is in delay therefore in effect there is no delay at all.
56. Requisites for delay to set in? Delay on the part of the debtor?
For delay to exist the following must be present:
a. The obligation must be due and demandable
b. The debtor does not perform his obligation
c. The creditor demands for the performance of the obligation judicially or extra-judicially
d. The debtor fails to comply to such demand
57. Can there be delay in all obligations? No. ARTICLE 1199. A person alternatively bound by different
prestations shall completely perform one of them.
58. Can there be delay in alternative obligations? There is no delay in alternative obligations.
(samplex)
59. In what instances when demand is not necessary in order for delay to set in?
Article 1169. The demand by the creditor shall not be necessary in order that delay may exist:
(1) When the obligation or the law expressly so declare; or
(2) When from the nature and the circumstances of the obligation it appears that the designation of the
time when the thing is to be delivered or the service is to be rendered was a controlling motive for the
establishment of the contract; or
(3) When demand would be useless, as when the obligor has rendered it beyond his power to perform.
In reciprocal obligations, neither party incurs in delay if the other does not comply or is not ready to
comply in a proper manner with what is incumbent upon him. From the moment one of the parties fulfills
his obligation, delay by the other begins.
60. Contravention?
Article 1170. Those who in the performance of their obligations are guilty of fraud, negligence, or delay,
and those who in any manner contravene t he tenor thereof, are liable for damages
61. Fortuitous events - Those events which could not be foreseen, or which, though foreseen, were
inevitable.
62. Elements of fortuitous event:
1. Cause is independent of the will of the debtor;
2. The event is unforeseeable or unavoidable;
3. Occurrence renders it absolutely impossible for the debtor to fulfill his obligation in a normal manner;
impossibility must be absolute not partial, otherwise not force majeure; and
4. Debtor is free from any participation in the aggravation of the injury to the creditor.
he fortuitous event must not only be the proximate cause but it must also be the only and sole
Note: T
cause. Contributory negligence of the debtor renders him liable despite the fortuitous event. (Pineda,
Obligations and Contracts, 2000 ed, p. 62)
63. In relation to non-performance of obligations, how did the SC differentiate those which are
fortuitous and those which are not fortuitous events? If fortuitous, not liable. If not, it will not
exonerate the obligor from his liability.
64. Nadukot pera niya, can he invoke fortuitous event? No. Not free from any participation
65. What are the remedies of a creditor in case of breach of contract?
Remedies of Creditors in breach of obligation
1. To Give Determinate Thing
a. To compel specific performance
b. To recover damages
2. To Give Indeterminate Thing
a. To ask for performance of the obligation
b. To ask that obligation be complied with by another at expense of debtor
c. To recover damages
3. To Do
a. To have the obligation performed at debtor’s expense
b. To recover damages
4. Not to Do
a. Undone at his expense
b. To recover damages
66. In an obligation to give, what are the remedies? (Already discussed above)
A. Determinate thing, can you have specific performance?
B. Generic thing, can there be action for specific performance?
a. Can you demand performance to the debtor himself?
67. What is the remedy under Art. 1191? Alternative remedies of the injured party. Injured party may
choose between the fulfillment and the rescission of the obligation, with payment of damages in either
case
68. Action for rescission under Art. 1380
Article 1380. Contracts validly agreed upon may be rescinded in the cases established by law.
A. What is the usual reason for rescission here? The usual causes are lesion, fraud and other
causes expressly specified by law
B. How about in 1191? Failure of one of the parties to comply with what is incumbent upon him.
69. In 1191, can there be extrajudicial rescission?
Yes. In Zulueta v. Mariano (111 SCRA 206 [1982]) where we held that extrajudicial rescission has legal
effect where the other party does not oppose it (Tolentino, Civil Code of the Philippines, Vol. IV, 1962
ed., p. 168, citing Magdalena Estate v. Myrick, 71 Phil. 344). In other words, resolution of reciprocal
contracts may be made extrajudicially unless successfully impugned in Court. If the debtor impugns the
declaration, it shall be subject to judicial determination
70. Can the court demand resolution under Art. 1191?
Yes. According to the third paragraph of Art. 1191, the court is given the discretionary power to fix a
period within which the obligor in default may be permitted to comply with what is incumbent upon him (p.
142, Jurado).
71. How about in 1380, is there an option for the court to modify the agreement?
Under Cuizon vs. CA, it is not in the province of the court to alter a contract by construction or to make a
new contract for the parties. Its duty is confined to the interpretation of the one which they have made for
themselves without regard to its wisdom or folly as the court cannot supply material stipulations or read
into the contract words which it does not contain.
