CHAPTER 1: GENERAL PROVISIONS

ART. 1156: An obligation is a juridical necessity to give, to do or not to do.

“A tie of Law which binds us, according to the rules of our civil law, to render something”

-The Institute of Justinian

“A legal relation between one person and another, who is bound to the fulfillment of a prestation which the
former may demand of him”

-Manresa

“The juridical necessity to comply with a prestation”

-Sanchez Roman

“A juridical relation whereby a person (called the creditor/obligee) may demand from another (called
debtor/obligor) the observance of a determinate conduct, and in case of breach, may obtain satisfaction from
the assets of the latter”

-J.B.L Reyes

 Obligation “to do” includes all kinds of work or service.

 Obligation “to give” is a prestation which consists in the delivery of a movable or immovable thing in order
to create a real right, or for the use of the recipient, or for its simple possession, or in order to return it to its
owner.

Right – is a claim or title to an interest to an interest in anything whatsoever that is enforceable by law.

- Is a power, privilege, or immunity guaranteed under a constitution, statute or decisional law, or

recognized as a result of long usage, constitutive of a legally enforceable claim of one person against to
other.

“for every right enjoyed by any person, there is a corresponding obligation on the part of another person to
respect such right”

Obligation:

Is a juridical relation whereby a person (creditor) may demand from another (debtor) the observance of a
determinative conduct (the giving, doing, or not doing), and in case of breach, may demand satisfaction from the
assets of the latter.

Civil Action: Is one by which a party sues another for the enforcement or protection of a right, or the prevention or
redress of a wrong.

Cause of Action: Is the act or omission by which party violates a right of another.

Complaint: contains the written statements alleging the plaintiff’s claim or cause or causes of actions.

Essential Elements of a cause of action:

 The legal right of the plaintiff

 The correlative obligation of the defendant
 The act or omission of the defendant in violation of said legal right.

Plaintiff: Is the person who files complaint in court.

Defendant: A person sued in the civil proceeding.

Real Obligation (Obligation to give): Obligation of the debtor or obligor to deliver thing, movable or immovable to
the creditor or obligee for the purpose of transferring ownership or for the use or possession of the recipient.

Kinds of Real Obligation:

1. Determinate or Specific Real Obligation: The obligation of the debtor or obligor to deliver a determinate or
specific thing to the creditor or obligee.
“A thing is determinate when it is particularly designated or physically segregated from all others of the same
class”
Example: The obligation to deliver a car with the plate number ABC123.
2. Indeterminate or Generic Real Obligation: The obligation of the debtor or obligor to deliver an
indeterminate or generic thing to the creditor or obligee.
“A thing is indeterminate when it is designated merely by its class or genus without any particular
designation or physical segregation from all others of the same class.”
Example: The obligation to deliver a car.

Personal Obligation (obligation to do and not to do): Obligation to do is also known as positive obligation while
obligation not to do is also known as negative personal obligation.

Kinds of Personal Obligation:

1. Positive Personal Obligation (Obligation to do): This is the obligation of the debtor or obligor to perform
some work or service for the creditor or oblige.
Example: The Obligation of B to construct the house of Y.
2. Negative Personal Obligation (Obligation not to do): This is the obligation of the debtor or obligor not to
perform some act in favor of the creditor or obligee.
Example: The obligation not to construct an extension on a house as per agreement in a contract.

Essential elements of an obligation:

1. Passive subject or debtor or obligor: He is the person who has the obligation to give, to do, or not to do.
2. Active subject or creditor or obligee: He is the person who has the right to demand compliance of the
obligation to give, to do or not to do.
3. Object: The fact, prestation or service. It is the particular conduct of the debtor or obligor which may consist
giving, doing, or not doing something.
“Prestation is the object of an obligation, and it is the conduct required by the parties to do, or not to do, or
to give.”
4. Juridical or legal tie or efficient cause or vinculum juris: It is which creates the relation between the passive
subject or obligor and the active subject or obligee.
 Legal relationship or tie
 The vinculum juris or juridical tie which is the efficient cause established by the various sources of
obligations.
 The object which is the prestation or conduct required to be observed.
 The subject-persons who, viewed from demandability of the obligation, are the active and the passive
subjects.
ART. 1157: Obligations arise from:

1. Law;
2. Contracts;
3. Quasi-contracts;
4. Acts or omissions punished by law; and
5. Quasi-delicts

Law – A rule of conduct, just, obligatory, promulgated by legitimate authority, and of common observance and
benefit.

Contracts – Is a meeting of minds between two parties whereby one bind himself, with respect to the other, to give
something or to render some service. (It is fundamental that a contract is the law between parties)

“Obligations arising from contracts have the force of law between the contracting parties and should be
complied with in good faith.”

Stages of Contracts:

 Negotiation – covers the period from the time the prospective contracting parties indicate interest in the
contract to the time the contract is concluded. (Perfected)
 Perfection of the contract takes place upon the concurrence of the essential elements thereof.
 Consummation begins when the parties perform their respective undertakings under the contract
culminating in the extinguishment thereof.

Culpa Contractual – The negligence in the performance of a contract.

Quasi – Latin term which means “as if”

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.

Conditions of unjust enrichment:

 A person is unjustly benefited

 Such benefit is derived at the expense of or to the damage of another.

Kinds of Quasi-Contracts:

1. Negotiorum Gestio – This refers to the voluntary administration of the property, business or affairs of
another without his consent or authority. It is creates the obligation to reimburse the gestor for necessary
and useful expenses.

There is no Negotiorum Gestio in either of these instances:

a. When the property or business is not neglected or abandoned;

b. If in fact the manager has been tacitly authorized by the owner.
2. Solution Indebiti – This refers to payment by mistake of an obligation which was not due when paid. It
creates the obligation to return the payment.

Requisites must be proven:

a. The absence of a right to collect the excess sums; and

b. The payment was made by mistake.
3. Other Quasi-Contracts – Those support given by strangers as enumerated under article 2164 to 2175 of the
New Civil Code.
Acts or Omissions Punished by Law – A violation of the law; especially a wrongful act or omission giving rise to a
claim for compensation.

Civil Liabilities in Delict:

1. Restitution – The restitution of the thing itself must be made whenever possible, with allowance for any
deterioration, or diminution of value as determined by the court.
2. Reparation of the damaged caused – The court shall determine the amount of damage, taking into
consideration the price of the thing, whenever possible, and its special sentimental value to the injured party,
and reparation shall be made accordingly.
3. Indemnification for consequential damages – Indemnification for consequential damages shall include not
only those caused the injured party, but also those suffered by his family or by a third person by reason of
the crime.

Quasi-Delicts (Quasi Ex-delicto) - also known as “tort” or “culpa aquiliana”. These are acts or omissions that cause
damage to another, there being fault or negligence but without any pre-existing contractual relation between the
parties.

Elements of Negligence:

1. The Fault or Negligence of the defendant;

2. The Damage suffered or incurred by the plaintiff; and
3. The relation of cause and effect between the fault or negligence of the defendant and the damage incurred
by the plaintiff.

Kinds of Negligence:

1. Culpa Aquiliana or Quasi-Delict: Negligence resulting from failure to observe the required diligence which
cause damage to another person.
2. Culpa Contractual: This is negligence in the performance of a pre-existing contract.
3. Culpa Criminal: This is also known as Criminal Negligence. This is negligence which results in the commission
of a crime.

Delict vs. Quasi-Delict

DELICT QUASI-DELICT
Wrong committed against the state. Wrong committed against a person.
Criminal intent is necessary for the existence of liability, Criminal intent is not necessary.
as a rule.
Applicable only when there is a penal law penalizing it. Actionable in any act or omission wherein fault or
negligence intervenes.
Requires proof beyond reasonable doubt Requires preponderance of evidence.
Employer’s liability is subsidiary Employer’s liability is primary.
LICIT ACTS – CONTRACTS & QUASI CONTRACTS

ILLICIT ACTS – DELICTS & QUASI-DELICTS

BILATIRAL ACTIONS – CONTRACTS

UNILATERAL ACTIONS – QUASI-CONTRACTS, DELICTS, QUASI-DELICTS

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.

LAW – regulates or declares the existence of such obligations.

E.G: The obligation of spouses to render mutual help and support in accordance with the provisions of the Family
codef the Philippines.

These obligations are regulated:

 By the precepts of the law which establishes them; and

 As to what has not been foreseen, by the provisions of Book IV of the Civil Code.

ART. 1159: Obligations arising from contracts have the force of law between the contracting parties and should be
complied with in good faith.

Good Faith – The essence of good faith lies in an honest belief in the validity of one’s right, ignorance of a superior
claim and absence of intention to overreach another.

Implied Contract - a legally-binding obligation that derives from actions, conduct, or circumstances of one or more
parties in an agreement.

ART. 1160: Obligations derived from quasi-contracts shall be subject to the provisions of chapter 1, Title XVII, of this
book.

“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.”

Quasi-Contracts principles:

1. It is presumed that a person agrees to that which will benefit him;

2. Nobody wants to enrich himself unjustly at the expense of another; and
3. We must do unto others what we want them to do unto us under the same circumtances.

Chapter 1, Title XVII, of the civil code explains Quasi-Contracts and its three kinds namely:

1. Negotiorum Gestio;
2. Solutio Indebiti; and
3. Other Quasi-Contracts

NEGOTIORUM GESTIO

 Form of quasi-contract which arises when a person, called the officious manager or gestor, voluntarily takes
charge of the agency or management of the business or property of another which has been neglected or
abandoned, without any power from the latter.
 Is the principal’s absence or inability to appoint a proper agent.
  The owner of the business or property must either be physically absent or has failed to appoint a proper
agent to administer the business or property because the concept explicity covers abandoned or neglected
property or business.
 It is necessary that the gestor must not have been tacitly authorized by the owner

Negotiorum Gestio Requisites:

1. A person called officious manager or gestor, voluntarily assumes the agency or management of the business
or property of another;
2. The property or business is neglected or bandoned;
3. There is no authorization from the owner, either expressly or implied; and
4. The assumption of agency or management is done in good faith.

Obligations created in Negotiorum Gestio:

On the part of the officious manager or gestor:

 He cannot just quit or abandon the property or the business;

 The law requires him to continue until the termination of the affair and its incidents or until the owner
appears and substitutes him in such management;
 He is obliged to observe the diligence of a good father of a family;
 If the owners suffers damage by reason of his fault or negligence, he is liable to pay damages to the owner;
 if the gestor abandons the property or the business after assuming management, he becomes liable to the
owner should the latter suffers damage.