Preliminary

Considerations
• Preliminary Considerations:

1. Civil Code has been defined as a codification

of laws regulating the private relations of the
members of the society, determining their
respective rights and obligations.

2. The New Civil Code (NCC) became effective

August 30, 1950 following its publication in the
Official Gazette. Before such time, the Civil
Code in force was the Civil Code of Spain of
1889.
3. Sources of NCC: Spanish Civil Code of 1889;
Foreign Laws such as the Civil Codes of
Argentina, England, France, Germany, Italy,
USA, Mexico, Switzerland; Foreign Decisions of
the US Courts; Decisions of the Philippine
Supreme Court; 1935 Constitution; Report of
the Code Commission, etc.
4. Civil Code Distinguished from Civil Law:

• Civil Code is just the repository of some of

the civil laws. Civil Law which is broader in
term refers to the laws that regulate civil
relations of the members of the society. It
can be found in the New Civil Code,
Domestic Adoption Act, Child and Youth
Welfare Code, Family Code, etc.
 “Art. 2. Laws shall take effect after fifteen days
following the completion of their publication in the
Official Gazette, unless it is otherwise provided. This
code shall take effect one year after such publication.”

COMMENTS:
1.Publication through newspaper of general circulation is
also allowed. It is considered a newspaper of general
circulation if made within the court’s jurisdiction, published
at regular intervals for the dissemination of local news and
general information, with bona fide subscription list of
paying subscribers and if it is not devoted to the interest
of a particular class, profession, trade or calling.
2.Laws become effective depending if there is an
effectivity date provided or not. If there is an
indicated effectivity date, then it becomes effective
on the aforesaid date. If no effectivity date is stated,
follow the rule provided in Art. 2 that is on the 16th
day. If the law provides that it becomes effective
immediately you still need to follow the rule in Art. 2
since publication is indispensable to comply with
due process.

3.Internal rules need not be published.

 “Art. 4. Laws shall have no retroactive effect, unless the
contrary is provided.”

COMMENTS:
1.General Rule: Prospectivity meaning it applies to the future; it
moves forward

2.Exception: Retroactivity- there is retroactivity when a law is

made applicable to situations or acts already done before the
passage of the said law. It is a law that creates new obligations
and duties or impair vested rights.

3.Penal laws as long as favourable to the accused, curative laws,

emergency laws and remedial laws can have retroactive effects.
 “Art. 8. Judicial decisions applying or interpreting the laws or
the Constitution shall form a part of the legal system of the
Philippines.”

COMMENTS:
1.The cases decided by the Supreme Court, how it was decided, the
doctrines enunciated and comments made constitute jurisprudence.
In simple terms it may refer to as the science of law.

2.Although not laws, the decisions interpreting the laws form part of
our legal system. They have the force and effect of laws.

3.Stare Decisis (Principle of Adherence)- Once a question of law

has been decided in one case, any other case involving the same
issues must be resolved in accordance with the preceding decision.
General Principles on
Law on Obligations
 “Art. 1156. An obligation is a juridical necessity to
give, to do or not to do.”

COMMENTS:
1. The term obligation is derived from the Latin word
“obligatio” which means tying or binding.

2. The definition in Article 1156 is adopted from

Sanchez Roman’s definition. It is somewhat incomplete
because it only defines obligation on its passive aspect.
3. The definition of Manresa is more encompassing
which provides:

“An obligation is a juridical relation established

between one person and another, whereby the
latter is bound to the fulfillment of a prestation
which the former may demand of him and in
case of breach may obtain satisfaction from the
assets of the defaulting party.”
4 . The term obligation as used in the present article refers
only to a Civil Obligation. A civil obligation is one which has
a binding force in law. It gives the obligee or creditor the
right to enforce it against the obligor or debtor in the courts.
It should be distinguished with a natural obligation which
cannot be enforced by court action. It becomes binding on
the party based only on conscience and according to
natural law. Example: payment of a prescribed obligation

5. The term obligation as used in the present article also

refers to a Patrimonial Obligation. A patrimonial obligation is
an obligation with pecuniary value or assessable in terms of
money.
6. Essential Requisites of an Obligation:

5.1 Passive Subject- one bound to perform the

prestation; the party against whom the obligation
is demandable; he is called the obligor/debtor;
may be a natural or juridical person.
5.2 Active Subject- one who can demand the
fulfillment of the prestation; the party in whose
favor the obligation is constituted; he is called the
obligee/creditor; may be temporarily indefinite as
in the case of payable to bearer instruments
5.3 Juridical Tie/ Legal Tie or Vinculum Juris- the
efficient cause which creates the relation between
the obligor/debtor and obligee/creditor and is
established by: (a) Law; (b) Bilateral Acts or (c)
Unilateral Acts

5.4 Prestation- the particular conduct of the debtor

which may consist in giving, doing or not doing
something which constitutes the object of the
obligation
7. From the viewpoint of subject matter, an obligation
to give is a real obligation while an obligation to do or
not to do are personal obligations.

8. Requisites of Prestation:
a. Physically and juridically possible
b. Determinate or at least determinable
according to pre-established elements or criteria
c. Must be within the commerce of men
d. Must be licit; and
e. Possible equivalent in money
9. Form of contract is sometimes added as a fifth
essential requisite of an obligation.

Examples: (a) Donation of Personal Property

whose value exceeds P5,000, the law requires
that the donation itself and acceptance must be in
writing (b) In Simple Loan (Mutuum), the interest
must be expressly stipulated in writing to be
demandable
• Sources of Obligations:

✦ Law

✦ Contracts

✦ Quasi-Contracts

✦ Delicts; and

✦ Quasi-Delicts (Art. 1157, Civil Code)

• Case to be recited: Sagrado Orden vs. Nacoco; G.R.

No. L-3756, June 30, 1952
1. Law (Ex-Lege)

• Obligations derived from law are not

presumed. Only those expressly determined in
the New Civil Code or in Special Laws are
demandable, and shall be regulated by the
precepts of the law which establishes them
(Art. 1158, Civil Code)

• In case of conflict between the Civil Code and

a special law, the latter prevails unless the
contrary has been stipulated.
• Examples:

★ Itis the duty of the spouses to support each

other. (Art. 291, Civil Code)

★ Under the National Internal Revenue Code as

amended by the TRAIN Law, it is the duty of
every taxpayer to pay the taxes due.
2. Contracts (Ex-Contractu)

• Contract is the meeting of the minds between two persons

whereby one binds himself with respect to the other, to give
something or to render some service (Art. 1305)

• Obligations arising from contracts have the force of law between

the contracting parties and should be complied with in good faith
because that which is agreed upon in the contract by the parties
is considered the law between them (Art. 1159, Civil Code)

• Example: Juan and Pedro entered into a contract of lease for a

period of two years commencing on January 2019 up to
December 2021. The lessor and the lessee agreed for a 3
months advance deposit and that the monthly payment of
P15,000 should be deposited on or before the 5th day of the
month to which it is due. No sublease is allowed.
2. Contracts (Ex-Contractu)

• The contracting parties may establish such stipulations,

clauses, terms and conditions as they may deem
convenient provided that it is not contrary to law, morals,
good customs, public policy or public order. (Art. 1306)

• Generally, contracts are perfected by mere consent, and

from that moment, the parties are bound not only to the
fulfillment of what has been expressly stipulated but also to
all consequences which according to their nature may be
in keeping with good faith, usage and law.

• Whether the contract is consensual or real, the rule is that

from the moment it is perfected, obligations which may
either be reciprocal or unilateral arise.
3. Quasi-contracts (Quasi Ex-Contractual)

• Quasi means “as if”

• Juridical relations arising from lawful, voluntary

and unilateral acts by virtue of which the
parties become bound to each other, based on
the principle that no one shall be unjustly
enriched or benefited at the expense of
another (Art. 2142, Civil Code)
• Kinds of Quasi-contracts:

A. Negotiorum Gestio (Officious Management)

• Whoever voluntarily takes charge of the

agency or management of the business or
property of another, without any power from
the latter, is obliged to continue the same
until the termination of the affair and its
incidents, or to require the person
concerned to substitute him, if the owner is
in a position to do so. (Art. 2144)
• The essential requisites of negotiorum gestio are as
follows:

1. No meeting of the minds

2. Taking charge of another’s business or property

3. Property or business must have been abandoned or

neglected

4. The officious manager (gestor) must not have been

expressly or implicitly authorized

5. The officious manager must have voluntarily taken

charge
• Example:

Juan travelled to Korea without leaving anyone to look

after his house in Makati. During his absence, a fire
broke out near Juan’s house. Pedro saved Juan’s
house from the fire but incurred expenses in the
process.

Juan has an obligation to reimburse Pedro for the

latter’s expenses based on negotiorum gestio, even if
he did not give his consent to Pedro’s act of saving his
house.
• Gestor or Officious Manager

A person who voluntarily takes charge of the agency or

management of the business or property of another,
without any power from the latter.

The officious manager is obliged to continue the same until

the termination of the affair and its incidents. (Art. 2144)

The owner of the property or business shall reimburse the

officious manager for the necessary and useful expenses
and for the damages which the latter may have suffered in
the performance of duties. (Art. 2150)
B. Solutio Indebiti (Payment Not Due)

• If something is received when there is no right

to demand it, and it was unduly delivered
through mistake, the obligation to return it
arises (Art. 2154)
• The essential requisites of solutio indebiti are as
follows:

1. Receipt (not mere acknowledgment) of

something;

2. There was no right to receive/demand it

(because the giver had no obligation); and

3. The undue delivery was because of mistake

• Example:

Juan owed Pedro the sum of P1,000 evidenced by a

contract of loan. By mistake, Juan paid P10,000
instead of P1,000.

In this case, Pedro has the obligation to return the

P9,000 excess because there was payment by
mistake.

The source of the obligation is quasi-contract

particularly solutio indebiti or payment by mistake.
• Other kinds of quasi-contracts are found in Articles
2164-2175.

• A quasi-contract is a unilateral contract created by

the sole act or acts of gestor; no express consent is
given by the other party.

• However, the consent needed is provided by law

through presumption. This consent is referred to as
presumptive consent.
4. Delict (Ex-Delictu, Culpa Criminal)

• Acts or omissions punished by law are known

as Delict/ Crime/ Felony

• Civil liability is a necessary consequence of

criminal liability. Every person criminally liable
is also civilly liable. (Art. 100, Revised Penal
Code)
• Civil liability may be in the form of:

A. Restitution- restoration or the return of the

object of the crime to the injured party

B. Reparation- payment by the offender of the

value of the object of the crime, when such
object cannot be returned to the injured party

C. Indemnification- the consequential damages

are paid by the offender which includes but is
not limited to the payment of other damages
that may have been caused to the injured party
• Illustration:

Juan was convicted and sentenced to imprisonment by

the Court for the crime of theft of the gold wrist watch of
Pedro.

In addition to whatever penalty the Court may impose,

Juan may also be ordered to return (restitution) the gold
wrist watch to Pedro. If restitution is no longer possible,
for Juan to pay the value (reparation) of the gold wrist
watch. In addition to restitution or reparation, Juan shall
also pay for consequential damages (indemnification)
suffered by Pedro.
• Rule 111 of the Criminal Procedure provides that:
“When a criminal action is instituted, the civil action
for the recovery of the civil liability arising from the
offense charged shall be deemed instituted with
the criminal action unless the offended party
waives the civil action, reserves the right to institute
it separately or institutes the civil action prior to the
criminal action.
5. Quasi-delict (Quasi Ex-Delicto)

• 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 quasi-delict. (Art. 2176)
• The requisites of quasi-delict are as follows:

1. Act or omission by the defendant;

2. Fault or negligence of the defendant;

3. Damage or injury caused to the plaintiff;

4. 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:

Juan is driving his car in a busy street in Manila at 80km/hour

speed. Without noticing Pedro, who is walking at the side
street, Juan sideswiped the former (Pedro) inflicting upon him
serious physical injuries.

In this case, Pedro may opt to file a criminal negligence case

under Art. 365 of the Revised Penal Code (Reckless
Imprudence Resulting in Serious Physical Injuries) and claim
civil liability for damages in the same case.

Alternatively, Pedro may file a civil case for damages based

on quasi-delict due to the negligence of Juan in driving his
car. But Pedro cannot claim twice for damages based on the
same act of reckless driving of Juan.
• Concept of Fault or Negligence

✦ Negligence is the failure to observe for the

protection of the interests of another persons, that
degree of care, precaution, and vigilance which the
circumstances justly demand.

• Doctrine of Imputed Negligence (Vicarious Liability)

✦ Obligations arising from quasi-delicts are

demandable not only from the person directly
responsible for the damage incurred, but also
against the persons mentioned in Article 2180 of the
Civil Code.
• Necessity of Proving Negligence

✦ Negligence must be proved in a suit on a

quasi-delict, so that the plaintiff may recover.

• Kinds of Negligence:

1. Culpa Aquiliana- quasi-delict

2. Culpa Criminal- criminal negligence

3. Culpa Contractual- negligence in the

performance of contract
 Delict Quasi-Delict

Nature Affects public interest Private Concerns

There is a crime when Covers acts of fault/

Scope there is a law that negligence
punishes it.
Imprisonment, Fine or
Form of Redress both (Criminal and/or Civil Liability
Civil Liability)
Beyond Reasonable Preponderance of
Proof Required
Doubt Evidence
Subsidiary- the employee must
Employer’s Liability be convicted and sentenced Direct and Primary
to pay civil indemnity and must
be insolvent