ATENEO DE

DAVAO
UNIVERSITY Sch
ool of Business
and
GovernanceCPA
Review
CenterBUSINESS
LAW(May 23,
2009)REVIEW

ON LAW ON
OBLIGATIONS(A
rticles 11561304 of the Civil
Code)I. Obligati
ons
General Provisio
ns
1. Meaning of

Law on
Obligations and
Contracts
? The law on
obligations and
contracts is the body
of rules which deals
with the nature and
resources
of obligations and
rights and duties

arising from
agreements and
contracts.2. Source of
the Law
on Obligations and
Contracts is the Civil
Code of the
Philippines (Republic
Act No. 388)which
took effect August 30,
1950. The Civil Code

is derived from the

Civil Code of Spain of
1889.3. Meaning of o
bligation:Code basis
Article 1158
obligation is
juridical
necessity to give
to do or not to
do.

4. Criticism as to the
definition of the Civil
Code by Justice
J.B.L. Reyes.It views
obligation from the
debit side. There
is no debt with credit
and the credit is
an asset
in thepatrimony of the
creditor just as the

debt is the liability of

the obligor.Better
definition: the one
given by Arias
Ramos, one of the
commentators of the
Civil Code:
An obligation is
a juridical
relation
whereby a

person (called
creditor) may
demand
fromanother (ca
lled debtor)
the observance
of a determinati
ve conduct (the
giving, doing
or notdoing)

and in case of
breach, may
demand
satisfaction from
assets of the
latter.
5. Kinds of obligations
based on its
definition:Real
obligation obligation
to givePersonal

obligation obligation
to do or not to do Two
kinds of personal
obligationa) Positive
personal obligation
to dob) Negative
personal obligation
not to do