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DEFINITION
An obligation is a juridical necessity to give, to do or not to do.
(Art. 1156)
KINDS OF OBLIGATIONS AS TO
ENFORCEABILITY
Obligations are civil or natural. Civil obligations give a right of
action to compel their performance. Natural obligations, not
being based on positive law but on equity and natural law, do not
grant a right of action to enforce their performance, but after
voluntary fulfillment by the obligor, they authorize the retention
of what has been delivered or rendered by reason thereof. Some
natural obligations are set forth in the following articles. (Art.
1423)
KINDS OF OBLIGATIONS AS TO
ENFORCEABILITY
Examples of Natural Obligations:
1. When without the knowledge or against the will of the debtor, a third
person pays a debt which the obligor is not legally bound to pay
because the action thereon has prescribed, but the debtor later
voluntarily reimburses the third person, the obligor cannot recover
what he has paid. (Art. 1425)
2. When, after an action to enforce a civil obligation has failed the
defendant voluntarily performs the obligation, he cannot demand the
return of what he has delivered or the payment of the value of the
service he has rendered. (Art. 1428)
3. When a testate or intestate heir voluntarily pays a debt of the
decedent exceeding the value of the property which he received by
will or by the law of intestacy from the estate of the deceased, the
payment is valid and cannot be rescinded by the payer. (Art. 1429)
ESSENTIAL ELEMENTS OF AN
OBLIGATION
1. Active subject (creditor) - obligee
2. Passive subject (debtor) - obligor
3. Prestation/Object – subject matter of the obligation.
4. Vinculum/Efficient Cause/Juridical Tie – the reason why the
obligation exists, the source of the obligation.
SOURCES OF OBLIGATIONS
Obligations arise from:
1. Law;
2. Contracts;
3. Quasi-contracts;
4. Acts or omissions punished by law; and
5. Quasi-delicts.
SOURCES OF OBLIGATION; LAW
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 Civil Code. (Art. 1158)
SOURCES OF OBLIGATION;
CONTRACTS
Obligations arising from contracts have the force of law between
the contracting parties and should be complied with in good
faith. (Art. 1159)
SOURCES OF OBLIGATION; QUASI-
CONTRACTS
Certain lawful, voluntary and unilateral acts give rise to the
juridical relation of quasi-contract to the end that no one shall be
unjustly enriched or benefited at the expense of another. (Art.
2142)
Requisites:
a. That he who paid was not under obligation to do so; and
b. That payment was made by reason of an essential mistake of
fact. (Andres s. Mantrust)
SOURCES OF OBLIGATION; QUASI-
CONTRACTS
Examples of Quasi-Contracts:
3. When funeral expenses are borne by a third person, without
the knowledge of those relatives who were obliged to give
support to the deceased, said relatives shall reimburse the
third person, should the latter claim reimbursement. (Art.
2165)
SOURCES OF OBLIGATION; DELICT
Every person criminally liable for a felony is also civilly liable.
(Art. 100, Revised Penal Code)
The civil liability established in Articles 100, 101, 102, and 103 of
this Code includes:
1. Restitution;
2. Reparation of the damage caused;
3. Indemnification for consequential damages. (Art. 104, Revised
Penal Code)
SOURCES OF OBLIGATION; DELICT
Acquittal of accused:
1. Acquittal because the accused did not do the act complained
of – no civil liability
2. Acquittal due to reasonable doubt – there can still be civil
liability.
SOURCES OF OBLIGATION; QUASI-
DELICT
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 a quasi-delict and is
governed by the provisions of this Chapter. (Art. 2176)
Requisites:
1. There must be an act or omission;
2. There must be fault or negligence;
3. There must be damage caused;
4. There must be a direct relation of cause and effect between
the act or omission and the damage.
SOURCES OF OBLIGATION; QUASI-
DELICT
Double recovery not allowed: Responsibility for fault or
negligence under the preceding article is entirely separate and
distinct from the civil liability arising from negligence under the
Penal Code. But the plaintiff cannot recover damages twice for
the same act or omission of the defendant. (Art. 2177)
KINDS OF CIVIL OBLIGATIONS: AS TO
PERFECTION AND EXTINGUISHMENT
1. Pure Obligations - an obligation whose performance does
not depend upon a future or uncertain event, or upon a past
event unknown to the parties and is demandable at once.
2. Conditional Obligations - the acquisition of rights, as well
as the extinguishment or loss of those already acquired, shall
depend upon the happening of the event which constitutes
the condition.
3. Obligations with a term - obligations whose fulfillment a
day certain has been fixed or those which take effect at once,
but terminate upon arrival of the day certain. A day certain is
understood to be that which must necessarily come, although
it may not be known when
KINDS OF CIVIL OBLIGATIONS: AS TO
PERFECTION AND EXTINGUISHMENT
Obligations which are immediately demandable:
1. Pure obligations
2. Obligations with a resolutory condition
3. Obligations with a resolutory term
CONDITIONAL OBLIGATIONS
Kinds of Conditions
Kinds of Impossibility:
1. Physically impossible – those which are incapable of being
done physically; or
2. Legally impossible – those that are contrary to law, good
customs, public policy.
CONDITIONAL OBLIGATIONS
EFFECT OF HAPPENING OF THE CONDITION: The effects of
a conditional obligation to give, once the condition has been
fulfilled, shall retroact to the day of the constitution of the
obligation. (Art. 1187)
EXCEPTIONS:
1. If there is stipulation to the contrary;
2. If the debtor refuses to pay the penalty;
3. If the debtor is guilty of fraud in the fulfilment of the
obligation.
OBLIGATIONS WITH A PENAL CLAUSE
RULES AS TO ENFORCEMENT:
1. The debtor cannot exempt himself from the performance of the
obligation by paying the penalty, save in the case where this
right has been expressly reserved for him.
2. Neither can the creditor demand the fulfillment of the
obligation and the satisfaction of the penalty at the same time,
unless this right has been clearly granted him. However, if after
the creditor has decided to require the fulfillment of the
obligation, the performance thereof should become impossible
without his fault, the penalty may be enforced. (Art. 1227)
3. Proof of actual damages suffered by the creditor is not
necessary in order that the penalty may be demanded. (Art.
1228)
OBLIGATIONS WITH A PENAL CLAUSE
RULES AS TO ENFORCEMENT:
4. The penalty can be reduced:
a. When the principal obligation has been partly or irregularly
complied with.
b. When the same is iniquitous or unconscionable. (Art. 1229)
5. The nullity of the penal clause does not carry with it that of the
principal obligation.
6. The nullity of the principal obligation carries with it that of the
penal clause. (Art. 1230)
OTHER CLASSES OF OBLIGATIONS
As to subject matter Real – obligation to give
Personal – obligation to do or not to
do
Under this kind of fraud, the party would not have entered into
the contract were it not for the fraud; annulment is the remedy
of the party who’s consent was obtained through fraud.
Except:
1. When the thing goes out of commerce or by legal
impossibility;
2. Limited Generic: In such cases where the generic thing
belongs to a particular group of thing and the loss pertains to
the whole group and NOT ONLY to the thing itself, then the
obligation is extinguished
LOSS
Partial Loss: The courts shall determine whether, under the
circumstances, the partial loss of the object of the obligation is so
important as to extinguish the obligation.
LOSS
Presumptions of fault: Whenever the thing is lost in the
possession of the debtor, it shall be presumed that the loss was
due to his fault, unless there is proof to the contrary.
Requisites:
1. Must take place between the credit and the principal debtor;
2. Must involve the very same obligation;
3. Must be total.