Tittle I: Obligations
(Chapter 1: General Provisions)
(1) As a general rule, the law does not require any
Article 1156. An obligation is a juridical form in obligations arising from contracts for
necessity to give, to do or not to do. (n) their validity or binding force. (see Art. 1356.)
Meaning of obligation. (2) Obligations arising from other sources (Art.
The term obligation is derived from the Latin 1157.) do not have any form at all.
word “obligatio” which means a “tying” or “binding.”
It is a tie of law or a juridical bond by virtue of Obligation, right, and wrong (cause of action)
which one is bound in favor of another to render distinguished.
something — and this may consist in giving a thing, doing (1) Obligation is the act or performance which the
a certain act, or not doing a certain act. law will enforce.
(2) Right, on the other hand, is the power which a
Civil Code definition. person has under the law, to demand from another
Article 1156 gives the Civil Code defi nition of obligation, any prestation.
in its passive aspect. Our law merely stresses the duty of (3) A wrong (cause of action), according to its legal
the debtor or obligor (he who has the duty of giving, meaning, is an act or omission of one party in
doing, or not doing) when it speaks of obligation as a violation of the legal right or rights of another,
juridical necessity. causing injury to the latter;
Essential elements of cause of action.
Meaning of juridical necessity. (1) a legal right in favor of a person
Obligation is a juridical necessity because in case (creditor/plaintiff) by whatever means and
of non-compliance, the courts of justice may be called under whatever law it arises or is created;
upon to enforce its fulfillment or, in default thereof, the (2) a correlative legal obligation on the part of
economic value that it represents. In a proper case, the another (debtor/defendant) to respect or not
debtor may also be made liable for damages, which to violate said right; and
represent the sum of money given as a compensation for (3) an act or omission in breach or violation of
the injury or harm suffered by the creditor or obligee (he said right by resulting injury or damage to the
who has the right to the performance of the obligation) for former
the violation of his rights.
Kinds of obligation according to subject matter.
Essential requisites of an obligation. From the viewpoint of the subject matter, obligation
Obligations which give to the creditor or obligee may either be:
a An obligation as defined in Article 1156 is constituted (1) Real obligation (obligation to give) or that in
upon the concurrence of the four (4) essential elements which the subject matter is a thing which the
thereof, namely: obligor must deliver to the obligee; or
(1) A passive subject (called debtor or obligor) or the (2) Personal obligation (obligation to do or not to do)
person who is bound to the fulfillment of the or that in which the subject matter is an act to be
obligation; he who has a duty; done or not to be done. There are thus two (2)
(2) An active subject (called creditor or obligee) or kinds of personal obligation:
the person who is entitled to demand the a. Positive personal obligation or obligation
fulfillment of the obligation; he who has a right; to do or to render service (see Art. 1167.);
(3) Object or prestation (subject matter of the and
obligation) or the conduct required to be observed b. Negative personal obligation or
by the debtor. It may consist in giving, doing, or obligation not to do (which naturally
not doing. (see Art. 1232.) Without the prestation, includes obligations “not to give”). (see
there is nothing to perform. In bilateral Art. 1168.)
obligations (see Art. 1191.), the parties are
reciprocally debtors and creditors; and Article 1157. . Obligations arise from:
(4) A juridical or legal tie (also called efficient (1) Law;
cause) or that which binds or connects the parties (2) Contracts;
to the obligation. The tie in an obligation can (3) Quasi-contracts;
easily be determined by knowing the source of (4) Acts or omissions punished by law;
the obligation. (Art. 1157.) and
(5) Quasi-delicts. (1089a)
Form of obligation.
Tittle I: Obligations
(Chapter 1: General Provisions)
Sources of obligations. they must be clearly set forth in the law, i.e., the Civil
(1) Law. — when they are imposed by the law itself, Code or special laws.
e.g., obligation to pay taxes; obligation to support
one’s family (see Art. 195, Family Code.); Article 1159. Obligations arising from
(2) Contracts. — when they arise from the contracts have the force of law between the
stipulation of the parties (Art. 1306.), e.g., the contracting parties and should be
obligation to repay a loan by virtue of an complied with in good faith. (1091a)
agreement;
(3) Quasi-contracts. — when they arise from lawful, Contractual obligations.
voluntary and unilateral acts and which are The above article speaks of contractual
enforceable to the end that no one shall be obligations or obligations arising from contracts or
unjustly enriched or benefited at the expense of voluntary agreements.
another (Art. 2142.), In a sense, these obligations A contract is a meeting of minds between two
may be considered as arising from law; persons whereby one binds himself, with respect to the
(4) Crimes or acts or omissions punished by law. — other, to give something or to render some service.
when they arise from civil liability which is the (1) Binding force. — Obligations arising from
consequence of a criminal offense (Art. 1161.) contracts are governed primarily by the
(5) Quasi-delicts or torts. — when they arise from agreement of the contracting parties. This does
damage caused to another through an act or not mean, however, that contract is superior to the
omission, there being fault or negligence, but no law
contractual relation exists between the parties (2) Requirements of a valid contract. —A contract is
(Art. 2176.) valid (assuming all the essential elements are
present, Art. 1318.) if it is not contrary to law,
Sources classified. morals, good customs, public order, and public
The law enumerates five (5) sources of policy. It is invalid or void if it is contrary to law,
obligations. They may be classified as follows: morals, good customs, public order, or public
(1) Those emanating from law; and policy.
(2) Those emanating from private acts which (3) Breach of Contract. A contract may be breach or
may be further subdivided into: violated by a party in whole or in part. A breach
a. those arising from licit acts, in the oof contract takes place when a party fails or
case of contracts and quasi-contracts; refuses to comply, without legal reason or
and justification, with his obligation under the
b. those arising from illicit acts, which contract as promised.
may be either punishable by law in
the case of delicts, or not punishable Compliance in good faith.
in the case of quasi-delicts. Compliance in good faith means compliance or
Actually, there are only two (2) sources: law and performance in accordance with the stipulations or terms
contracts, because obligations arising from quasi- of the contract or agreement. Sincerity and honesty must
contracts, crimes, and quasi-delicts are really imposed by be observed to prevent one party from taking unfair
law. advantage over the other.
Non-compliance by a party with his legitimate
Article 1158. Obligations derived from law obligations after receiving the benefits of a contract would
are not presumed. Only those expressly constitute unjust enrichment on his part.
determined in this Code or in special laws
are demandable, and shall be regulated by Article 1160. Obligations derived from
the precepts of the law which establishes quasi-contracts shall be subject to the
them; and as to what has not been provisions of Chapter 1, Title XVII, of this
foreseen, by the provisions of this Book. Book. (n)
(1090)
Quasi-contractual obligations
Legal obligations. A quasi-contract is that juridical relation
Article 1158 refers to legal obligations or resulting from certain lawful, voluntary and unilateral acts
obligations arising from law. They are not presumed by virtue of which the parties become bound to each other
because they are considered a burden upon the obligor. to the end that no one will be unjustly enriched or
They are the exception, not the rule. To be demandable, benefited at the expense of another. (Art. 2142.)
Tittle I: Obligations
(Chapter 1: General Provisions)
In a quasi-contract, there is no consent but the (3) Civil liability without criminal liability. A person
same is supplied by fiction of law. In other words, the law not criminally responsible may still be liable
considers the parties as having entered into a contract, civilly, such as failure to pay contractual debt.
although they have not actually done so, and irrespective
of their intention, to prevent injustice or the unjust Scope of civil liability.
enrichment of a person at the expense of another. The extent of the civil liability arising from
crimes is governed by the Revised Penal Code and the
Kinds of quasi-contracts. Civil Code.18 This civil liability includes:
The principal kinds of quasi-contracts are negotiorum 1. Restitution;
gestio and solutio indebiti. 2. Reparation for the damage caused; and
1. Negotiorum gestio is the voluntary management 3. Indemnification for consequential damages. (Art.
of the property or affairs of another without the 104, Revised Penal Code.)
knowledge or consent of the latter. (Art. 2144.)
2. Solutio indebiti is the juridical relation which is Article 1162. Obligations derived from
created when something is received when there is quasi-delicts shall be governed by the
no right to demand it and it was unduly delivered provisions of Chapter 2, Title XVII of this
through mistake. (Art. 2154.) Book, and by special laws. (1093a)
The requisites are:
a. There is no right to receive the thing Obligations arising from quasi-delicts
delivered; and A quasi-delict is an act or omission by a person
b. The thing was delivered through mistake. (tort feasor) which causes damage to another in his
3. Other examples of quasi-contracts. — They are person, property, or rights giving rise to an obligation to
provided in Article 2164 to Article 2175 of the pay for the damage done, there being fault or negligence
Civil Code. The cases that have been classified as but there is no pre-existing contractual relation between
quasi-contracts are of infinite variety, and when the parties.21 (Art. 2176.)
for some reason recovery cannot be had on a true
contract, recovery may be allowed on the basis of Requisites of quasi-delict.
a quasi-contract. Before a person can be held liable for quasi-
delict, the following requisites must be present:
Article 1161. Civil obligations arising from 1. There must be an act or omission by the
criminal offenses shall be governed by the defendant;
penal laws, subject to the provisions of 2. There must be fault or negligence of the
Article 2177, and of the pertinent defendant;
provisions of Chapter 2, Preliminary Title 3. There must be damage caused to the plaintiff;
on Human Relations,16 and of Title XVIII 4. There must be a direct relation or connection of
of this Book, regulating damages. (1092a) cause and effect between the act or omission and
the damage; and
Civil liability arising from crimes or delicts.. 5. There is no pre-existing contractual relation
This article deals with civil liability arising from between the parties.
crimes or delicts.
(1) Civil liability in addition to criminal liability. Crime distinguished from quasi-delict.
Oftentimes, the commission of a crime causes not The following are the distinctions:
only moral evil but also material damage. From 1. In crime or delict, there is criminal or malicious
this principle, the rule has been established that intent or criminal negligence, while in quasi-
every person criminally liable for a felony is also delict, there is only negligence;
civilly liable for damages suffered by the 2. Crime affects public interest, while quasi-delict
aggrieved party.. concerns private interest;
(2) Criminal liability without civil liability. In 3. In crime, there are generally two liabilities:
crimes, however, which cause no material criminal and civil, while in quasi-delict, there is
damage (like contempt, insults to person in only civil liability;
authority, gambling, violations of traffic 4. In crime or delict, the purpose is punishment,
regulations, etc.), there is no civil liability to be while in quasi delict, indemnification of the
enforced. offended party;
5. Criminal liability cannot be compromised or
settled by the parties themselves, while the
Tittle I: Obligations
(Chapter 1: General Provisions)
liability for quasi-delict can be compromised as
any other civil liability;
6. In crime, the guilt of the accused must be proved
beyond reasonable doubt, while in quasi-delict,
the fault or negligence of the defendant need only
be proved by preponderance of evidence;
