COMLAW

Introduction

General Provisions/ Obligation

Art. 1156. An obligation is a juridical necessity to give, to do, or not to do. Establishes the unilateral act of the debtor either to give, to do, or not to do as a patrimonial obligation. It means that the debtor has the obligation while the creditor has its rights.

What is in Art. 1156?

An obligation is juridical necessity to give, to do or not to do.

Patrimonial obligation

Those Obligations with pecuniary value or assessable in terms of money. Can be measured in money.

Characteristics of Patrimonial Obligations

-Represent an exclusively private interest.
-Create ties that are by nature transitory.
-Exist a power to make effective in case of non-fulfillment, the economic equivalent obtained at the patrimony of a debtor.

Juridical Necessity

It means the rights and duties  arising  from obligation are legally demandable and the  courts of  justice may be called upon through proper action  to order the  performance.

Action

Means an ordinary suit in court of justice by which one  party prosecutes another for the enforcement or protection for  a right or a prevention or redress of a wrong.

Essential requisites of an obligation

1. active  subject

2. passive  subject

3. object  or  the  prestation

4. vinculum juris or the juridical tie

active  subject

who  has  the  power  to  demand  the  prestation,  known as the creditor or obligee;

passive  subject

who  is  bound  to  perform  the  prestation,  known as debtor or obligor

vinculum juris

or the juridical tie between the two subjects by   reason of which the debtor is bound in favor of the creditor to  perform the prestation. It is the legal tie which constitutes the  source of obligation—the coercive force which makes the  obligation demandable.

Juridical Tie

Debtor Or Obligor → To give, to do, or not to do → Creditor or Obligee

Unilateral obligation

That is, the  obligation of the debtor to fulfill or comply his commitment.

ART. 1157. Obligations arise from: 

• Law;

• Contracts; 

• Quasi-contracts;

• Acts or omissions punished by law/delicts; and 

• Quasi-delicts. (1089a)

Source of Obligations

1. LAW as a source of obligations

2. CONTRACT as a source of obligations

3. QUASI-CONTRACT as a source of obligations

4. DELICTS or acts or omissions punished by law as a source of obligations

5. QUASI-DELICT as a source of obligations

LAW as a source of obligations

Refers to the legal obligations  or obligations  imposed by specific provisions of law, which means that obligations arising  form law are not  presumed and that to be demandable must be clearly  provided for, expressly or impliedly in the law.

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.

Contract as defined in Art. 1305

NCC is the meeting of minds between two person  whereby one binds himself with respect to the other, to give something or to render some  service.

Art.1159

Obligations arising from contracts have the force of law between the contracting parties  because that which is agreed upon in the contract by the parties is the law between them,  thus, the agreement should be complied with in good faith.

A Contract may be written or oral, except for:

•Consideration of marriage.

•Cannot be performed within one year.

•Sale of an interest in land.

•Executor of a will to pay a debt of the estate with his own  money.

•Sale of goods above a certain value.

•One party becomes a surety (acts as guarantor) for another party’s debt or other obligation.

•Donations above 5000php (movable property with  simultaneous delivery. If not simultaneous, must be written regardless of  amount. Donation of ALL immovable properties must be in writing and in a  public instrument.)

QUASI-CONTRACT as a source of obligations

Is the juridical relation resulting from a lawful,  voluntary and unilateral act which has for its purpose the  payment of indemnity to the end that no one shall unjustly  enriched or benefited at the expense of another. (Art. 2142,  NCC)

‘quasi’

‘as if’

Quasi-contracts in terms of concent

Contracts and quasi-contracts distinguished: there is no consent as the same is implied  by law;

Quasi-contract in terms of nature of obligation

Contracts and quasi-contracts distinguished: quasi-contract is a natural  obligation.

2 Kinds of Quasi-contract

1. Solutio Indebiti (Payment by mistake)

2. Negotiorum gestio (management of another’s property)

Solutio Indebiti (Payment by mistake)

It is the juridical relation which arises when a person is obliged to return something  received by him through error or mistake.

Example-

Arvin owed Ian the sum of P1, 000.00. By mistake, Arvin paid P2, 000.00. Ian has the  obligation to return the P1, 000.00 excess because there was payment by mistake.

Negotiorum gestio (management of another’s property)

It is the voluntary management or administration by a person of the abandoned business  or property of another without any authority or power from the latter. (Art. 2144, NCC)

Example-

Victor, a wealthy landowner suddenly left for abroad leaving his livestock farm  unattended. Ramon, a neighbor of Victor managed the farm thereby incurring  expenses. When Victor returns, he has the obligation to reimburse Ramon for the  expenses incurred by him and to pay him for his services. It is bases on the principle  that no one shall enrich himself at the expense of another.

DELICTS or acts or omissions punished by law as a source of obligations

Acts or omission punished by law is known as Delict or Felony or Crime. While an act or omission is felonious because it is punished by law, the criminal  act  gives rise to civil liability as it caused damage to another.

Delict or Felony or Crime

Acts or omission punished by law.

Civil liability arising from delicts:

Restitution
Reparation
Indemnification

Restitution

which is the restoration of or returning the object of the crime to  the  injured party.

Reparation

Which is the payment by the offender of the value of the object of the crime, when such object cannot be returned to the injured party.

Indemnification

The consequential damages which includes the payment of  other  damages that may have been caused to the injures party.

QUASI-DELICT as a source of obligations

Is one where whoever by act or omission causes  damage to another, there being fault or negligence, is obliged  to  pay for the damage done, if there  is no pre-existing contractual  relation between the parties.  (Art. 2176)

QUASI-DELICT as a source of obligations example:

If Pedro drives his car negligently and because of his  negligence  hits Jose, who is walking on the sidewalk of the  street, inflicting  upon him physical injuries. Then Pedro  becomes liable for  damages based on …….?

DELICTS or acts or omissions punished by law as a source of obligations example:

Illustration:

Mario was convicted and sentenced to imprisonment by the Court for the crime of theft,  the gold wrist watch, of Rito. In addition to whatever penalty that the Court may impose,  Mario may also be ordered to return (restitution) the gold wrist watch to Rito. If restitution  is no longer possible, for Mario to pay the value (reparation) of the gold wrist watch. In  addition to either restitution or reparation, Mario shall also pay for damages  (indemnification) suffered by Rito.

Requisites of a Quasi-delict

• There must be fault or negligence attributable to the  offended;

• There must be damage or injury caused to another;

• There is no pre-existing contract.

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  theprovisions.

ART. 1159

Obligations arising from contracts have the  force of law  between the contracting parties and should be  complied with in good  faith. (1091a)

Good faith

Is compliance or performance in accordance with the  terms of the contract.

ART. 1163.

Every person obliged to give something is also  obliged to take care of it with the proper diligence of a good  father of a family, unless the law or the stipulation of the  parties requires another standard of care.

ART. 1164

The creditor has a right to the fruits of the  thing from the time the obligation to deliver it arises.  However, he shall acquire no real right over it until the  same has been delivered to him.

3 kinds of fruits:

• Natural fruits

• Industrial fruits

• Civil fruits- those derived from juridical relations

  (rents, income)

Natural fruits

spontaneous products of the soil  and the young and other products of animals  (examples are grass, trees and plants on lands  produced without the intervention of human  labor)

  Industrial fruits

Those produced by lands of any  kind through cultivation or labor (sugarcane, rice)

Civil fruits

Those derived from juridical relations (rents, income)

When Obligation to deliver fruits arises 1

1. The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises. However, he shall acquire no real right over it unilt the same have been delivered to him (Art. 1164, NCC)

When Obligation to deliver fruits arises 2

Generally, the obligation to deliver the things due and the fruits thereof arises from the time of perfection of the contract.

Perfection

Means the birh of the contract/meeting of the minds.

When Obligation to deliver fruits arises 3

If obligation is subject to a suspensive condition or period, it arises upon the fulfillment of the condition or arrival of the term/period. However, the parties may make a stipulation to the contrary.

When obligation to deliver fruits arises 4

In a contract of sale, the obligation arises from the perfection of the

Example when obligation to deliver fruits arises

Example – A binds himself to sell his horse to B for P10, 000. No date nor  condition is stipulated for delivery of the horse.

Later, the horse gave birth to a colt.

If it is subject to a condition or period and the period has not arrived yet and B has  not paid the price yet, A as seller is entitled to the colt. But if B has paid the  horse, even if it was supposed to be delivered next month, B is already  entitled to the colt.

ART. 1165

When what is to be delivered is a determinate thing, the creditor, in addition to the right granted him by  article 1170, may  compel the debtor to make the delivery.

If the obligor delays, or has promised to deliver the same thing to two  or more persons who do not have the same interest, he shall be responsible for any fortuitous event until he has effected the delivery.

(1906)

ART. 1166

The obligation to give a determinate thing includes that of  delivering all its accessions and  accessories, even though  they may not have been  mentioned. (1097a)

Obligations of the Debtor To Give a  determinate thing- 1

To preserve or take care of the thing with the proper  diligence of a good father of a family. It means the  ordinary diligence that a prudent man would exercise in  taking care of his own property taking into consideration  the nature of the obligation, of the time and of the place,  like a person who is obliged to deliver a determinate  horse to another should, pending its delivery, preserve it  by taking care of the same as if the horse is his own.

Obligations of the Debtor To Give a  determinate thing- 2

Deliver  the  thing  itself,  the  Fruits,  Accessions  and  Accessories.

Accession

Fruits  of  a  thing  or  additions  to  or  improvements upon a thing (the principal).

Example-house  on  a  land,  rents  of  a  building,  aircondition of a car

Accessories

Are those things which are joined/attached to  the principal object for the latter’s embellishment, better  use or completion.

Key of a house, frame of a picture, bracelet of a watch,  machinery in a factory; bow of a violin

Obligations of the Debtor To Give a  determinate thing- 3

To be liable for damages in case of breach of obligation (Art.  1170, NCC)

Determinate thing

A thing is determinate when it is  particularly designated or physically segregated from all  others from the same class. (Art. 1460, NCC)

Indeterminate or generic thing

A thing is generic when it  refers to a class, thing, or genus and cannot be designated with particularity. (Art. 1460, NCC)

Fortuitous Events

Those events which could not be  foreseen or which though–foreseen were inevitable. (Art.  1174, NCC)

In specific real obligation-  determinate thing

• May demand specific performance or fulfillment  plus damages

• OR demand rescission or cancellation with right to

damages

• Demand of payment of damages only

In generic real obligation

• May demand from debtor to comply with right to  damages

• OR may ask another person to deliver with right to damages

Art. 1167

If a person obliged to do something fails to do it,  the same shall be executed at his cost.

This same rule shall be observed if he does it in  contravention of the tenor of the obligation. Furthermore,  it may be decreed that  what has been poorly done be  undone. ( 1098 )

Obligation of the debtor To Do

Being a personal positive obligation, The creditor has  the right to secure the services of third person to perform  the obligation at the expense of the debtor under the  following instances:

• When the debtor fails to do the obligation;

• When the debtor performs the obligation but contrary to the  tenor; or

• When the obligor poorly performs the obligation.

ART. 1168.

When the obligation consists in not doing, and the  obligor does has been forbidden him, it shall also be undone at  his expense. (1099a)

Obligation of the Debtor NOT To Do

This is negative personal obligation which is consisting of an  obligation, of not doing something. If the debtor does what has been  forbidden him to do, the obligee can ask the debtor to have it undone.  If it is impossible to undo what was done, the remedy of the injured  party is for an action of damages.

Obligation of the Debtor NOT To Do, Example:

A bought a land from B. It was stipulated that A would not construct a  fence in a certain portion of his land adjoining that land sold by B.  Should A construct a fence in violation of the agreement, B can bring  an action to have the fence removed at the expense of A.