Title 1 – Obligations

Chapter 1: General Provisions

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

Quasi-Contractual Obligations
] Article 1160 treats of obligations arising from quasi-contracts implied in law.

] Quasi-contract
} Is that juridical relations resulting from lawful, voluntary and unilateral acts by virtue of which the parties become
bound to each other to the end that no one will be unjustly enriched or benefited at the expense of another. (Article
2141)
 Article 2142.
▪ 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. (n)
} It is not, properly, a contract at all.
} In contract, there is a meeting of the minds or consent (See Articles 1318, 1319); the parties must have deliberately
entered into a formal agreement.
 Article 1318.
▪ There is no contract unless the following requisites concur:

(1) Consent of the contracting parties;

(2) Object certain which is the subject matter of the contract;
(3) Cause of the obligation which is established. (1261)

] In a quasi-contract, there is no consent but the same is supplied by fiction of law.

} The law considers the parties as having entered into a contract, although they have not actually done so, and
irrespective of their intention, to prevent injustice or the unjust enrichment of a person at the expense of another.

Kinds of Quasi-Contracts
] Principal Kinds of Quasi-Contracts:
1. Negotiorum Gestio
2. Solutio Indebiti

(1) Negotiorum Gestio

} It is the voluntary management of the property or affairs of another without the knowledge or consent of the latter
(Article 2144)
 Article 2144.
▪ Whoever voluntarily takes charge of the agency or management of the business or property of
another, without any power from the latter, is obliged to continue the same until the termination of
the affair and its incidents, or to require the person concerned to substitute him, if the owner is in
a position to do so. This juridical relation does not arise in either of these instances:

(1) When the property or business is not neglected or abandoned;

(2) If in fact the manager has been tacitly authorized by the owner.

In the first case, the provisions of articles 1317, 1403, No. 1, and 1404 regarding unauthorized contracts
shall govern.
In the second case, the rules on agency in Title X of this Book shall be applicable. (1888a)
Title 1 – Obligations
Chapter 1: General Provisions

Example:
X went to Baguio with his family without leaving somebody to look after his house in Manila. While in
Baguio, a big fire broke out near the house of X. Through the effort of Y, a neighbor, the house of X was saved
from being burned. Y, however, incurred expenses.

In this case, X has the obligation to reimburse Y for said expenses, although he did not actually give
his consent to the act of Y in saving his house, on the principle of quasi-contract.

(2) Solutio Indebiti

} It is the juridical relation which is created when something is received when there is no right to demand it and it
was unduly delivered through mistake (Article 2154).
 Article 2154.
▪ If something is received when there is no right to demand it, and it was unduly delivered through
mistake, the obligation to return it arises. (1895)
} It is based on the principle that no one shall enrich himself unjustly at the expense of another.
} The requisites are:
(a) There is no right to receive the thing delivered; and
(b) The thing was delivered through mistake

Example:
D owes C P1,000. If d paid T believing that T was authorized to receive payment for C, the obligation to
return on the part of T arises. If D paid C P2,000 by mistake, C must return the excess of P1,000. The presumption
(see Article 1176), however, is that “money paid by one to another was due to the latter,” unless the payor proves
otherwise.
 Article 1176.
▪ The receipt of the principal by the creditor without reservation with respect to the interest, shall
give rise to the presumption that said interest has been paid.

(3) Other examples of Quasi-Contracts

} They are provided in Articles 2164 to 2175 of the Civil Code.
} The cases that have been classified as quasi-contracts are of infinite variety, and when for some reason recovery
cannot be had on a true contract, recovery may be allowed on the basis of quasi-contract.

SECTION 3
Other Quasi-Contracts *
{ Article 2164.
} When, without the knowledge of the person obliged to give support, it is given by a stranger, the latter
shall have a right to claim the same from the former, unless it appears that he gave it out of piety and
without intention of being repaid. (1894a)

{ Article 2165.
} 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. (1894a)

{ Article 2166.
} When the person obliged to support an orphan, or an insane or other indigent person unjustly refuses
to give support to the latter, any third person may furnish support to the needy individual, with right of
reimbursement from the person obliged to give support. The provisions of this article apply when the
father or mother of a child under eighteen years of age unjustly refuses to support him.
Title 1 – Obligations
Chapter 1: General Provisions

{ Article 2167.
} When through an accident or other cause a person is injured or becomes seriously ill, and he is treated
or helped while he is not in a condition to give consent to a contract, he shall be liable to pay for the
services of the physician or other person aiding him, unless the service has been rendered out of pure
generosity.

{ Article 2168.
} When during a fire, flood, storm, or other calamity, property is saved from destruction by another
person without the knowledge of the owner, the latter is bound to pay the former just compensation.

{ Article 2169.
} When the government, upon the failure of any person to comply with health or safety regulations
concerning property, undertakes to do the necessary work, even over his objection, he shall be liable
to pay the expenses.

{ Article 2170.
} When by accident or other fortuitous event, movables separately pertaining to two or more persons
are commingled or confused, the rules on co-ownership shall be applicable.

{ Article 2171.
} The rights and obligations of the finder of lost personal property shall be governed by articles 719 and
720.

{ Article 2172.
} The right of every possessor in good faith to reimbursement for necessary and useful expenses is
governed by article 546.

{ Article 2173.
} When a third person, without the knowledge of the debtor, pays the debt, the rights of the former are
governed by articles 1236 and 1237.

{ Article 2174.
} When in a small community a majority of the inhabitants of age decide upon a measure for protection
against lawlessness, fire, flood, storm or other calamity, any one who objects to the plan and refuses
to contribute to the expenses but is benefited by the project as executed shall be liable to pay his share
of said expenses.

{ Article 2175.
} Any person who is constrained to pay the taxes of another shall be entitled to reimbursement from the
latter.