AUF School of Law Obligations and Contract

2
nd
Semester/2009-2010 jmvdg 1


Civil obligation vs Natural
obligation
Gives to the obligee
or creditor the right
of enforcing it
against the obligor
or debtor in a court
of justice.
(right of action)
effect Cannot be
enforced by court
action
Positive law source Equity and natural
law.

Primary Secondary
pure and conditional
with a period
alternative
and facultative
joint and solidary
divisible and indivisible
with a penal clause
legal, conventional,
penal
real and personal
determinate and
generic
unilateral and bilateral
individual and
collective
accessory and
principal

As to juridical quality -Natural
-civil
-mixed
As to parties -Unilateral and bilateral
-individual and
collective
As to object -Determinate and
generic
-simple and multiple
-positive and negative
-real and personal
-possible and
impossible
-divisible and divisible
-principal and accessory


BOOK IV
OBLIGATIONS and CONTRACTS
TITLE I OBLIGATIONS


Art. 1156. Obligation is a juridical necessity to
give, to do or not to do.

Juridical necessity to comply with a prestation-
Sanchez Roman

Legal relation established between one person and
another, whereby the latter is bound to the
fulfillment of a prestation which the former may
demand from him. - Manresa
interest be specified in writing. (Art. 2134,
CC)
---Donation of immovable property be made
in a public document and the acceptance
be made in the same document or separate
public document (Art. 749, CC)
---contribution of immovable property or
real rights to common fund (partnership)
must be in a public instrument with
attached inventory signed by the parties.
(Art. 1771, 1773, CC)
---Chattel Mortgage, personal property
must be recorded in the Chattel Mortgage
Register (Art. 2140, CC)
---sale or transfer of large cattle, such
transfer or sale must be registered. (Sec.
22, Act No. 1147, Art. 1581, CC)

Classifications of obligation











Requisites of Obligation
juridical or legal tie
-bilateral
-unilateral
active subject
passive subject
fact, prestation or service

**As a general rule, the form of the obligation is not
an essential element/requisite. Except (the non-
compliance of the following formalities would have
the effect of rendering the contract agreement void
or inexistent):
---donation of personal property whose
value exceeds P5,000.00, contract in
writing. (Art. 748, CC)
---sale of a piece of land or any interest
therein through an agent, authority of such
agent be in writing. (Art. 1874, CC)
---Interests in a contract of simple loan or
mutual, agreement with respect to such be
in writing. (Art. 1956, CC)
---anticheresis, principal amount and






classifications according to Manresa
AUF School of Law Obligations and Contract
2
nd
Semester/2009-2010 jmvdg 2



As to perfection and
extinguishment
-Pure
-conditional
-with term or period

faith. (1091a)

Contract-meeting of minds between two persons
whereby one binds himself, with respect to the
other, to give something or to render some service.
Consensual contracts- contracts perfected by
Art. 1157. Obligations arise from:
law
contracts
quasi contracts
acts or omissions punished by law; and
quasi-delicts


**The addition of lege has been criticized as
theoretically erroneous.

**The enumeration is exclusive.

Art. 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. (1090)

**obligations derived from law cannot be
presumed. (unlike other obligations)

**requisites to determine whether an obligation
arises from law or from other sources.
law that establishes or recognizes the obligation
act or condition upon which the obligation is
based.

** when the law merely recognizes the existence of
an obligation generated by an act which may
constitute a contract, quasi-contract, criminal
offense, or quasi-delict and its only purposeisto
regulatesuchobligation, then the ACT itself is the
source of the obligation and NOT the law.

Pelayo vs Llauron-obligation of support between
spouses.
Art. 2014 obligation of the winner in a gambling to
return the money to the one who lost.



Art. 1159. Obligations arising from contracts
have the force of law between the contracting
parties and should be complied with in good
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 of the
consequences which according to their nature may
be in keeping with good faith, usage and law.
Real Contracts- perfected upon the delivery of
the obligation.

Obligation arises from the moment of
perfection of the contract.
Reciprocal obligation- parties are mutually
obliged to do or to give something.
Unilateral obligation- only one party (obligor) is
obliged to do or to give something.

**Obligations arising from contract are governed
primarily by the agreement of the contracting
parties.

Compliance in good faith- performance in
accordance with the stipulations, clauses, terms
and conditions of the contract.

Unjust enrichment

**In default of agreement, the provisions of the
Civil Code regulating such obligations are
applicable.

General Rule: The contract is the law between the
contracting parties.
Ex: Macasaet vs COA

exception to general rule: Agcaoili vs GSIS


Art. 1160. Obligations derived from quasi-
contracts shall be subject to the provisions of
Chapter 1, Title XVII, of this Book. (n)



Quasi-contracts- juridical relations arising from
lawful, voluntary, and unilateral acts, by virtue
which the parties become bound to each other,
based on the principle that no one shall be unjustly