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• There is no debt without a credit, and the credit is an asset in the

patrimony of the creditor just as the debt is a liability of the obligor

(JBL Reyes)
• The sources of obligation can be reduced into two: law and contracts.
Obligations arising from quasi-contracts, crimes and quasi-delicts are
imposed by law. (Leung Ben v. O’Brien)
• Obligations derived from law must be set forth. They are not
• Thus, no matter how fair or logical an imposition of an obligation may
be, if the law does not provide for it, there is no basis for its existence
much less its enforcement.
• This rule can be used as a tool for statutory construction
• However, this does not mean the an obligation cannot in any way result from
an interpretation of statute by the courts.
• Obligations arising from contracts have the force of law between the
parties. (Art. 1159)
• Obligations imposed by contracts, as long as allowed by law to be
stipulated upon, are protected. Even the Constitution affirms their
• The contracting parties’ freedom to contract is limited by law, morals,
good customs, public order or public policy. (Art. 1306)
• This is an example of police power restriction to private acts.
• Contractual stipulations may supersede the standards imposed by law
except when said standards are matters of public policy matters,
which are non-derogable.
• The law gives signals: “unless otherwise agreed by the parties”; “in
the absence of stipulation”
An obligation is the result of the contract;
contract is just one of the sources of obligation
• A quasi-contract is that juridical relation resulting from a lawful,
voluntary, and unilateral act, and which has for its purpose the
payment of indemnity
• This may be referred to as the obligation arising from the application
of the unjust enrichment rule;
• Quasi-contract is not a contract because of the absence of the
element of meeting of minds.
• Negotiorum gestio and solutio indebiti
• .Prestation is return, refund, reimbursement or indemnity
• Art. 1161 pertains to civil obligation.
• Art. 100 of the Revised Penal Code states that every person criminally
liable for a felony is also civilly liable.
• Restitution
• Reparation of the damage
• Indemnity for consequential damages
• To illustrate the distinction: when a crime is committed, the obligation
against the community is physical punishment or fine; while the
obligation to the private complainant/family of the victim is
monetary, which may be the subject of a quitclaim or a compromise
• Quasi-delict / Tort / Culpa aquiliana
• Negligence can be tort, contractual negligence (breach) or criminal
• It is tort if the basis of liability is not a contract and the negligence is
not of such degree as to offend the State
• Negligence is the omission of that diligence which is required by the
circumstances of person, place, and time. (Civil Code defintion)
• Culp aquiliana – negligence as the source of obligation
• Culpa contractual – negligence in the performance of a contract
• Culpa criminal – criminal negligence