INTRODUCTION TO LAW Right – power which a person has under the law, to Requisites: Consent; object; consideration or cause

demand from another any prestation (Article 1318)

GENERAL NATURE OF LAW Wrong – violation of legal rights Contract – meeting of minds
Law – any rule pf action or any system of uniformity; Essential elements of legal wrong or injury are: Contract cannot be valid if it against the law.
determines not only the activities of men as rational
beings but also the movements or motions of all 1. Legal right A breach will happen if a party fails or refuses to
objects of creation 2. A correlative legal obligation comply, without legal reason or justification, with his
3. A violation act obligation under the contracts as promised.
CHAPTER 1
Kinds of obligations Compliance in good faith – compliance or
GENERAL PROVISIONS performance in accordance with the stipulations or
1. Real obligation terms of the contract or agreement
Article 1156. An obligations is a juridical necessity 2. Personal obligation
to give, to do or not to do. a. Positive Article 1160. Obligations derived from quasi-
b. Negative contracts shall be subject to the provisions of
Obligation – Latin word obligatio which means tying or Chapter 1, Title XVII of this Book.
binding Article 1157. Obligations arise form:
Kinds of quasi-contracts
Nature of obligations under civil code: 1. Law
2. Contracts 1. Negotiorum gestio –
 Civil Obligations – which give to the creditor 3. Quasi-Contracts 2. Solutio indebiti
or oblige a right under the law to enforce 4. Acts or omissions punished by law 3. Other examples of quasi-contracts
their performance in courts of justice 5. Quasi-delicts
 Natural obligations – which do not grant a Article 1161. Civil obligations arising from criminal
right of action to enforce their performance Sources classified: offenses shall be governed by the penal laws,
although in case of voluntary fulfillment by subject to the provisions of Article 2177, and of
1. Law the pertinent provisions of Chapter 2, Preliminary
the debtor, the latter may not recover what 2. Private Acts
has been delivered or rendered by reason Title, on Human Relations, and of Title XVIII of this
a. Licit acts (Contracts and Quasi- Book, regulating damages.
thereof. (Article 1423-1430) contracts)
Essential requisites of an obligation b. Illicit acts (delicts and quasi-delicts)  Civil liability in addition to criminal liability
 Criminal liability without civil liability
 A passive subject Note: actually, there are only two (sources): law and  Civil liability without criminal liability
 An active subject contracts, because obligations arising from quasi-
 Object or prestation contracts, delicts, and quasi-delicts are really imposed The civil liability includes:
 A juridical tie or legal tie by law.
1. Restitution
Form of an obligation may be oral, writing or partly Article 1158. Obligations derived from law are not 2. Reparation for the damage caused; and
oral and partly in writing presumed. Only those expressly determined in 3. indemnification for consequential damages
this Code or in special laws are demandable, and
 From contracts – does not require any form shall be regulated by the precepts of the law Article 1162. Obligations derived from quasi-
 From other sources – do not have any form which establishes them; and as to what has not delicts shall be governed by the provisions of
at all been foreseen, by the provisions of this Book. Chapter 2, Title XVII of this Book, and by special
laws.
Obligation, right, and wrong distinguished Reason: They are not presumed because they are
considered a burden upon the obligor. Requisites of Quasi-delicts:
Obligation – act or performance which the law will
enforce Article 1159. Obligations arising from contracts 1. act or omission
have the force of law between the contracting 2. fault or negligence
parties and should be complied with in good faith. 3. there must be damaged caused
 4. there must be a direct related or connection - Industrial fruits – produced by lands of c. Demand payment of damages only, where it
of cause and effect between the act or any kind through labor and cultivation is the only feasible remedy
omission and the damage; and - Civil fruits – derived by virtue of a
5. there is no pre-existing contractual relation juridical relation Remedies of generic real obligation
between the parties.
When obligation to deliver fruits arises Not necessarily to compel the debtor; the
Note: Distinguished crime form quasi-delict creditor has the right to recover damages under
- Obligation to deliver the thing is due and Article 1170 in case of breach or violation
NATURE AND EFFECT OF OBLIGATIONS arises from the time of the “perfection of
the contract” or the birth of the contract; Genus nunquam perit – genus never perishes
Article 1163. Every person obliged to give it includes contract of sale
Article 1166. The obligation to give a determinate
something is obliged to take care of it with the - If the obligation is subject to suspensive
thing includes that of delivering all its
proper diligence of a good father of the family, condition or period, it arises from the
accessories, even though they many not have
unless the law or the stipulation of the parties fulfillment of the condition
mentioned.
requires another standard of care. - If the obligation did not arise from
contracts, time of performance is Accessions – fruits of a thing or additions to or
TO GIVE SOMETHING determined by the specific provisions of improvements upon a thing
 Specific or determinate thing – cannot be the law applicable
Accessories – things joined to or included with the
substitute with another Personal and real right principal thing for the latter’s embellishment
- Duties
1. Preserve or take care of the thing, 1. Personal – right or power of a person to General principle – accessory follows the principal
unless the law or the stipulation of demand from another
the parties provides for another 2. Real right – right or interest of a person over Article 1167. If a person obliged to do something
standard of care (ex. Common a specific things, without the definite passive fails to do it, the same shall be executed at his
carrier); the debtor is not liable to subject whom the right may be personally cost.
preserve the thing is not due to his enforced; directed against the whole world
fault but to fortuitous events or force This same rule shall be observed if he does it in
majeure Ownership acquired by delivery contravention of the tenor of the obligation.
2. Deliver the fruits of the thing Furthermore, it may be decreed that what has
Article 1165. When what is to be delivered is a been poorly done be undone.
3. Deliver the accessions and
determinate thing, the creditor, in addition to the
accessories Situations contemplated:
right granted him by Article 1170, may compel the
4. Deliver the thing itself
debtor to make the delivery.
5. Answer for damages in case of non- - Debtor fails to perform an obligation to
fulfillment or breach If the thing is indeterminate or generic, he may do
 Generic or indeterminate thing – can be ask that the obligation be complied with at the - The debtor performs an obligation to do
substitute with the same kind expense of the debtor. but contrary to the terns thereof; or
- Duties - Debtor performs an obligation to do but
1. To deliver the thing If the obligor delays, or has promised to deliver in poor manner
2. To be liable for damages the same thing to two or more persons who do
not have the same interest, he shall be Remedies
Article 1164. The creditor has the right to the fruits responsible for fortuitous event until he has
of the thing from the time the obligation to deliver - If the debtor fails to comply with his
effected the delivery.
it arises. However, he shall acquire no real right obligation to do, the creditor has the
over it until the same has been delivered to him. Remedies of specific real obligation right:
1. To have the obligation performed by
Different kinds of fruits a. Demand specific performance or fulfillment himself, or by another, unless
plus damages personal considerations are
- Natural fruits – fruits without the b. Demand rescission or cancellation plus involved, at the debtor’s expense
intervention of humans; spontaneous damages 2. To recover damages
 - If it is done in contravention of the terms Delay Article 1170. Those who in the performance of
or is poorly done, it may be ordered in their obligations are guilty of fraud, negligence, or
court upon complaint that it be undone 1. Ordinary delay delay and those who in any manner contravene
2. Legal delay or default or mora the tenor thereof, are liable for damages.
Performance by a third person
Kinds of delay or default 4 grounds of liability
- Compelling performance by debtor is
prohibited but it can be performed by 1. Mora solvendi 1. Fraud (deceit or dolo) / incidental fraud –
third person Requisites deliberate or intentional evasion of the
- If personal qualifications is the - Failure of the debtor to perform his normal fulfillment of an obligation; bad faith;
determining motive of an obligation , the positive obligation on the date agreed however, it is committed in the performance
only remedy is the indemnification of upon of an obligation already existing
damages - Demand 2. Negligence (fault or culpa) – failure to
- Failure of the debtor to comply with such exercise the degree of care required by the
Article 1168. When the obligation consists in not demand circumstances
doing, and the obligor does what has been 3. Delay (mora)
forbidden him, it shall also be undone at his Effects
4. Contravention of the terms of the obligation –
expense violation of the terms and conditions
- The debtor is guilty of breach or violation
of the obligation stipulated in the obligation without justifiable
- The debtor cannot be guilty of delay
- Liable to the creditor for interest or excuse or reason. The contravention must
- Remedy: undoing of the forbidden thing
damages not due to fortuitous event
plus damages
- He is liable even for a fortuitous event
Fraud and Negligence
Article 1169. Those obliged to deliver or to do when the obligation is to deliver a
something incur in delay from the time the oblige determinate thing - Intention
judicially or extrajudicially demands from them 1. Mora accipiendi - Waiver of the liability
the fulfillment of their obligation. Effects - Evidence
- The creditor is guilty of breach - Mitigation or reduction of liability
However, the demand by the creditor shall not be - Liable for the damages suffered
necessary in order that delay may exist: - Bears the risk of loss of the thing due Article 1171. Responsibility arising from fraud is
- Where the obligation to pay money, the demandable in all obligations. Any waiver of an
1. When the obligation or the law expressly
debtor is not liable for interest from the action for future fraud is void.
so declares; or
time the creditor’s delay
2. When from the nature and the Exception.
- The debtor may release himself from the
circumstances of the obligation it
obligation
appears that the designation of the time A past fraud can be the subject of a valid waiver
2. Compensatio morae
when the thing is to be delivered or the because the waiver can be considered as an act of
- Delay of the obligor cancels the delay of
service is to be rendered was a generosity and magnanimity on the part of the
the oblige and vice versa.
controlling motive for the establishment aggrieved party.
of the contract; or No delay in negative personal obligations
3. When the demand would be useless, as Article 1172. Responsibility arising from
when the obligor has rendered it beyond When demand is not necessary to put debtor in negligence in the performance of every kind of
his power to perform. delay? obligation is also demandable, but such liability
may be regulated by the courts, according to the
In reciprocal obligations, neither party incurs in 1. When the obligations so provides circumstances.
delay if the other does not comply or is not ready 2. When the law so provides
to comply in a proper manner with what is 3. When the time is of the essence Responsibility arising from negligence demandable
incumbent upon him. From the moment one of the 4. When demand would be so useless
1. Discretion of court to fix amount damages
parties fulfill his obligation, delay by the other 5. When there is performance by a party in
begins. reciprocal obligations
 2. Damages where both parties mutually 4. Circumstances of the place 3. Impossible for the debtor to comply his
negligent (no responsibility; equitable obligations
principle) Damages – signify the money compensation awarded 4. Debtor must be free from any participation
to a party for loss or injury resulting from breach of
Validity of waiver arising from negligence (except contract or obligation by the other. Obligations that are exempted from fortuitous event
when it is a common carrier or is gross or shows bad
faith) Diligence – attention and care required of a person in 1. When expressly specified by law
a given situation - The debtor is guilty of fraud, negligence,
When negligence is gross or shows bad faith, it is or delay, or contravention of the tenor of
considered equivalent to fraud. Under Article 1173, the following kinds of diligence are the obligations
required: - The debtor has promised to deliver the
Kinds of negligence according to source of obligation same thing to two or more persons who
1. That agreed upon by the parties, orally or in
do not have the same interest
1. Contractual negligence (article 1172) – writing;
- The obligation to delivered is generic
results in breach; not a source of obligation; 2. In the absence of stipulation, that required by
2. When declared by the stipulation
merely makes the debtor liable for damages law in the particular case (like the
3. When the nature of the obligation requires
in view of his negligence in the fulfillment of a extraordinary diligence required of common
the assumption of risk
pre-existing obligation carriers); and
2. Civil negligence (culpa aquilana) – tort or 3. If both the contract and law are silent, then Article 1175. Usurious transactions shall be
quasi-delict the diligence expected of a good father of a governed by special laws.
3. Criminal negligence – negligence resulting in family
the commission of crime Simple loan or mutuum
Article 1174. Except in cases expressly specified
The aggrieved party may choose between a criminal by the law, or when it is otherwise declared by Usury – contracting for or receiving interest in excess
action under article 100 of the Revised Penal Code of stipulation, or when the nature of the obligation of the amount allowed by law for the loan or use of
the Philippines or civil action for damages under requires the assumption of risk, no person shall money, goods, chattels or credits.
Article 2176 of the civil Code. be responsible for those events which could not
be foreseen, or which though foreseen, were Requisites of recovery of interest
Effect of negligence on the injured party inevitable.
1. The payment of interest must be expressly
- The court shall decide Fortuitous events – any event which cannot be stipulated
foreseen, or which though foreseen, is inevitable. 2. The agreement must be in writing
Article 1173. The fault or negligence of the obligor 3. The interest must be lawful
consists in the omission of that diligence which is 1. Acts of man
required by the nature of the obligation and 2. Acts of God Article 1176. The receipt of the principal by the
corresponds with the circumstances of the creditor, without reservation with respect to the
person, of the time and of the place. When Kinds of fortuitous event interest, shall give rise to the presumption that
negligence shows bad faith, the provisions of the said interest has been paid.
Articles 1171 and 2201, paragraph 2, shall apply. 1. Ordinary fortuitous event – common and
which the contracting parties could The receipt of a later installment of a debt without
If the law or contract does not state the diligence reasonable foresee reservation as to prior installments, shall likewise
which is to be observed in the performance, that 2. Extra-ordinary fortuitous events – uncommon raise the presumption that such installments have
which is expected of a good father of a family and which contracting parties could not have been paid.
shall be required. reasonably foresee
Presumption- interference of a fact not actually known
Factors must be considered in determining the issue Requisites arising from its usual connection with anotherwhich is
of negligence. known or proved.
1. Independent of human will or at least the
1. Nature of obligation debtors will Two kinds:
2. Circumstances of the person 2. Event could not be foreseen
3. Circumstances of the time 1. Conclusive presumption
 2. Rebuttable presumption 1. Generic or indeterminate thing – refers only - Demand rescission or cancellation plus
to a class or genus to which it pertains and indemnity for damages
When presumption in Article 1176 do not apply? cannot be pointed out with clarity. - Demand payment of damages only
2. Personal right – right or power of a person 3. What are included to be delivered in an
1. With reservation as the interest.
(creditor) to demand from another (debtor), obligation to give a definite thing?
2. Receipt without indication of particular
as a definite passive subject, the fulfillment
installment paid. Article 1166. The obligation to give a determinate
of the latter’s obligation to give, to do, or not
3. Receipt for a part of the principal thing includes that of delivering all its accessions
to do.
4. Payment of taxes and accessories, even though they may not have
3. Legal delay or default – failure to perform an
5. Non-payment proven been mentioned.
obligation on time which failure constitutes a
Article 1177. The creditors, after having pursued breach of the obligation
4. Suppose the obligation of the debtor to do
the property in possession of the debtor to satisfy 4. Fortuitous event – any event which cannot
something and he fails to do it or performs it
their claims, may exercise all the rights and bring be foreseen, or which, though foreseen, is
in contravention of the agreement, what are
all the actions of the latter for the same purpose, inevitable.
the remedies available to the creditor?
save those which are inherent in his person; they 5. Diligence of a good father of a family –
may also impugn the acts which the debtor may ordinary care or that diligence which an Article 1182. When the fulfillment of the condition
have done to defraud them. average (a reasonably prudent) person depends upon the sole will of the debtor, the
exercises over his own property. conditional obligation shall be void. If it depends
Remedies available to creditors for the satisfaction of upon chance or upon the will of the third person,
the claims II.
the obligation shall take effect in conformity with
1. Give the rules as to the liability of a person the provisions of this Code.
1. Exact fulfillment with the right to damages
2. Pursue the leviable property of the debtor for loss damage resulting from a fortuitous
Classifications of conditions:
3. Right to retention event.
4. Ask the court to rescind or impugn acts or 1. As to effect:
They are not responsible for the loss or damage
contracts which the debtor may have done to - Suspensive
caused by fortuitous event. However, there are
defraud him - Resolutory
exceptions:
2. As to form:
Article 1178. Subject to the laws, all rights - Express
- When expressly specified by law
acquired in virtue of an obligation are - Implied
The debtor is guilty of fraud, negligence,
transmissible, if there has been no stipulation to 3. As to possibility:
or delay or contravention of the tenor of
the contrary. - Possible
the obligation
The debtor has promised to deliver the - Impossible
Exceptions to transmissibility of rights
same (specific) thing to two or more 4. As to cause or origin:
1. Prohibited by law: persons who do not have the same - Protestative – depends upon the sole
- By the contract of partnership interest will of one of the contracting parties;
- By the contract of agency The obligation to deliver a specific thing condition suspensive in nature
- By the contract of commodatum arises from crime - Casual
2. Prohibited by stipulation of the parties The thing to be delivered is generic - Mixed
- When declared by stipulation 5. As to mode:
- When the nature of the obligation - Positive
requires the assumption of risk - Negative
2. What rights are given by law to the creditor in 6. As to numbers:
case the debtor fails to comply with his - Conjunctive
obligation to deliver a specific thing? - Disjunctive
STUDY GUIDE - Demand specific performance or 7. As to divisibility
fulfillment plus indemnity for damages - Divisible
- Indivisible