COURSE OUTLINE IN 

OBLIGATIONS AND CONTRACTS 

(Atty. Elmer T. Rabuya) 

BOOK IV 
OBLIGATIONS AND CONTRACTS 

Title I. – OBLIGATIONS 

CHAPTER I. – GENERAL PROVISIONS 

Textbook : Tolentino, Vol. IV & Obligations and Contracts by Jurado 

Article 1156 

1. Concept of Obligation 
2. Essential Elements of Obligation 
(see : Ang Yu Asuncion vs. CA, 238 SCRA 602) 

3. Civil Obligation Distinguished From Natural Obligation 

(see : Arts. 1423 – 1430, Civil Code) 

3.1 Concept of Natural Obligation 

3.2 Natural Obligation Distinguished From Civil Obligation 
3.3 Natural Obligation Distinguish From Moral Obligation 
3.4 Meaning of “Voluntary Fulfillment” (see Arts. 1956 and 1960, Civil Code) 
3.5 Guaranty of Natural Obligations 
See : Art. 2052, Civil Code 

Article 1157 

1. Sources of Obligations 

Article 1158 
Cases : 
Leung Ben vs. O’Brien, 38 Phil. 182 
Pelayo vs. Lauron, 12 Phil. 453 
Bautista vs. Borromeo, 35 SCRA 119 
Manila Trading & Supply Co. vs. Saez, 66 Phil. 237 
Dela Cruz vs. Northern Theatrical Enterprises, 50 O.G. 4225 
Noel vs. CA, 240 SCRA 78 

Article 1159 
1. Definition of Contract : See Art. 1305. 
2. Various Stages of Contract : see Ang Yu Asuncion vs. CA, 238 SCRA 602 
3. As To Perfection 
(a) Consensual Contract : See Art. 1315, CC 
(b) Real Contracts : See Art. 1316, CC 
(c) Solemn Contract : See Art. 1357, CC 

4. Obligatory Force of Contract 

Cases : 
Ang Yu Asuncion vs. CA, 238 SCRA 602 
Pichel vs. Alonzo, 111 SCRA 341 
Allied Banking Corp. vs. CA, 284 SCRA 357 
Intestate Estate of the Late Ricardo P. Presbiterio, Sr. vs. CA, 
217 SCRA 372 
Sangalang vs. IAC, Dec. 22, 1988 
Article 1160 

1. Concept of Quasi Contract : See Art. 2142-2143, CC 

Cases: 
Leung Ben vs. O’Brien, 38 Phil. 182 
Tangco vs. CA, 89 Phil. 395 
Lao Chit vs. Security Bank and Trust Co., Inc., 105 Phil. 490 
BPI vs. Pineda, 156 SCRA 404 

2. Two Kinds of Quasi-Contract 

(a) Negotiorum Gestio : see Arts. 2144 – 2153, CC 

2. (a) (1) - Distinguished From Implied Agency. 
2. (a) (2) - Art. 2144 

Cases: 
Adille vs. CA, 157 SCRA 455 
Sison vs. Balgos, 34 Phil. 885 
Rotea vs. Delupio, 67 Phil. 330 

2. (a) (3) – Art. 2145 

Case: 
MRR Co. Cia. Vs. Transatlantica, 38 Phil. 875 
US vs. Lim, 36 Phil. 682 

2. (a) (4) – Art. 2149 

Case: 
Gutierrez Hermanos vs. Orense, 28 Phil. 571 
(b) Solutio Indebiti : See Arts. 2154 – 2163 

2. (b) (1) - Requisites of Solutio Indebiti 

Cases: 
Power Commercial & Industrial Corp. vs. CA, 274 SCRA 597 
City of Cebu vs. Piccio, 110 Phil. 558 
Velez vs. Balzarza, 73 Phil. 630 

2. (b) (2) - Examples of Solutio Indebiti 

Cases: 

Aquinena and Co. vs. Muertequi, 32 Phil. 261 

Velez vs. Balzarza, 73 Phil. 630 
Puyat and Sons, Inc. vs. Sarmiento, L-17447, April 30, 1963 
Andres vs. Manufacturers Hanover Trust Corp., 177 SCRA 618 

2. (b) (3) - No Solutio Indebiti 

Cases: 
Monte de Piedad vs. Rodrigo, 63 Phil. 312 
Manila Surety and Fidelity Co., Inc., l-9343, Dec. 29, 1959 

2. (b) (4) - Art. 2155 

Cases: 
Gonzalo Puyat & Sons, Inc. vs. City of Manila, 117 Phil. 985 
Globe Mackay Cable and Radio Corp. vs. NLRC, June 29, 1988 

(c) Other Quasi-Contracts : Arts. 2164 –2175 

Article 1161 

1. Civil Liability Arising From Criminal Offenses: See Arts. 100 - 103, Revised Penal Code 

2. Basis of Civil Liability 

Cases: 
Banal vs. Tadeo, Jr., 156 SCRA 325 
Occena vs. Icamina, 181 SCRA 328 

3. Implied Institution of Civil Action. 

Read : Sec. 1, Rule 111 of the 2000 Rules on Criminal Procedure 

4. Dual Concept of Civil Liability 
Cases: 
Barredo vs. Garcia and Almario, 73 Phil. 607 
Diana vs. Batangas Transportation Co., 93 Phil. 392 
Elcano vs. Hill, 77 SCRA 93 
Jarantilla vs. Court of Appeals, 171 SCRA 429 

5. Two kinds of acquittal: (Manantan v. CA, 350 SCRA 387) 

(A) Acquittal of the Accused Based on Reasonable Ground 

(a) See: Art. 29, CC 

(b) Cases : 
Padilla vs. Court of Appeals, 129 SCRA 558 
People vs. Jalandoni, 131 SCRA 454 
Maximo vs. Gerochi, Jr., 144 SCRA 325 
Castillo vs. CA, 176 SCRA 591 
Heirs of the Late Teodoro Guaring, jr. vs. CA, 269 SCRA 283 

(B) Acquittal Based on Ground That Accused Not Author of Act or Omission 
(a) See: Sec. 2, Rule 111 of the 2000 Rule on Criminal Procedure 
(b) Cases: Manliclic v. Calaunan, 512 SCRA 642 (2007) 
Ching v. Nicdao, G.R. No. 141181, April 27, 2007 

6. Effect of Death of Accused During Pendency of Appeal 

Cases: 
People vs. Bayotas, 236 SCRA 239 
Villegas vs. Court of Appeals, 271 SCRA 148 

Article 1162 

1. Concept of Quasi-delict 
see : Art. 2176, CC 

2. Elements of Quasi-delict 

Cases: 
Taylor vs. Manila Electric Co., 16 Phil. 8 
Philippine Bank of Commerce vs. CA, 269 SCRA 695 

3. Culpa Aquiliana Distinguished From Culpa Contractual 

Case: 
Rakes vs. Atlantic Gulf & Pac. Co., 7 Phil. 395 
Cangco vs. Manila Railroad Co., 33 Phil. 768 
De Guia vs. Manila Electric Co., 40 Phil. 706 
Gutierrez vs. Gutierrez, 56 Phil. 177 

4. Culpa Aquiliana Distinguish From Culpa Criminal 

Cases: 
Barredo vs. Garcia and Almario, 73 Phil. 607 
Elcano vs. Hill, 77 SCRA 98 

5. Scope of Quasi-delicts 

(a) Quasi-Delict and Delict. 

Cases: 
Barredo vs. Garcia and Almario, 73 Phil. 607 
Elcano vs. Hill, 77 SCRA 98 
Diana vs. Batangas Transportation Co., 93 Phil. 392 

(b) Quasi-Delict and Breach of Contract 

Cases; 
Air France vs. Carrascoso, 18 SCRA 155, Sept. 28, 1966 
Singson vs. BPI, 23 SCRA 1117 
LRTA v. Natividad, G.R. No. 145804, Feb. 6, 2003 

6. Prohibition Against Double Recovery 

See: Art. 2177, CC 

Cases: 
Diana vs. Batangas Transportation Co., 93 Phil. 391 
Tactaquin vs. Palileo, 21 SCRA 346 
Tactaquin vs. Palileo, 21 SCRA 1433 
Jocaon vs. Glorioso, 22 SCRA 316 
Padua vs. Robles, 66 SCRA 485 
Virata vs. Ochoa, 81 SCRA 472 
Mendoza vs. La Mallorca Bus Co., 82 SCRA 243 
Mendoza vs. Arrieta, 91 SCRA 113 
Joseph vs. Bautista, 170 SCRA 540 
Jarantilla vs. CA, 171 SCRA 429 
Imson vs. CA, 239 SCRA 58