COMLAW

Article 1156

an obligation is a juridical necessity to give, to do, or not to do

Definition of Obligation

Obligations arise from:

Law;

Contracts;

Quasi-contracts;

Acts or omissions punished by law; and

Quasi-delicts. (1089a)

ARTICLE 1157.

Obligations derived from law are not presumed

ARTICLE 1158.

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

ARTICLE 1159.

Obligations derived from quasi-contracts

ARTICLE 1160.

Civil obligations arising from criminal offenses shall be governed by the penal laws

ARTICLE 1161.

obligatio, tying/binding

Obligation - Latin word _________ which means a _________ or _________

obligation

It is a tie of law or a juridical bond by virtue of which one is bound in favor of another to render something — and this may consist in giving a thing, doing a certain act, or not doing a certain act.

in case of non-compliance, there will be legal sanctions

An obligation is a juridical necessity because ____________________________ or, in default thereof, the economic value that it represents.

liable for damages

The debtor may also be made _____________ which represent the sum of money given as a compensation for the injury or harm suffered by the creditor or obligee for the violation of rights.

he likes it or not

The debtor must comply with his obligation whether ____________ otherwise, his failure will be visited with some harmful or undesirable legal consequences.

Civil obligations

Natural obligations

Nature of Obligations under the Civil Code

binding force

enforceable

positive/state law

creditor/obligee a right of action

Civil obligation

Has a_______________in law.

_______________ in courts of justice.

Based on _______________.

Gives the_______________ in the courts of justice to enforce their performance.

Obligation mentioned in Article 1156.

conscience

not enforceable

equity and natural law

right to enforce an obligation has already lapsed

natural obligation

Binding on the party who makes it in _______________, according to natural law.

_______________ in court.

Based on _______________

Born when the _______________ or been prescribed.

After the voluntary performance of the debtor, he can no longer recover what he has given.

Passive subject

Active subject

Object

Juruducal tie/vindiculum juris

Essential Requisites/elements of an Obligation

Passive subject

obligor

debtor

Bound to the fulfillment of the obligation.

Passive subject

obligor

debtor

He who has the duty of giving, doing, or not doing

Active subject

obligee

creditor

He who is entitled to demand the fulfillment of the obligation.

Active subject

obligee

creditor

He who has the right.

Object

The conduct required to be observed by the debtor.

Object

It may consist in giving, doing, or not doing.

nothing

without prestation there is __________ to perform

bilateral obligations, 1191

In ___________ (see Art. ______.), the parties are reciprocally debtors and creditors.

Juridical Tie

Binds or connects the parties to the obligation.

Juridical Tie

The reason why the obligation exists.

Juridical Tie

Coercive force which makes the obligation demandable.

Juridical Tie

Constitutes the source of obligation. The tie in an obligation can easily be determined by knowing the source of the obligation. (see Art. 1157.)

no form

(1) As a GENERAL RULE, there is _______ required in obligations by the law, arising from contracts for their validity or binding force. (see Art. 1356.)

(2) Obligations arising from other sources (Art. 1157.) _______ have any form at all.

true

As a general rule, a contract is valid and binding even if it is:

Oral

Written on paper

Made through text message

Or even implied by actions

As long as these exist:

Consent

Object

Cause

Obligation

The act or performance which the law will enforce.

Right

The power which a person has under the law, to demand from another any prestation.

Wrong/injury

An act or omission of one party in violation of the legal right or rights of another, causing injury to the latter.

wrong/injury

used to refer to the wrongful violation of the legal right of another.

cannot exist, at the moment a right has been transgressed or violated.

An obligation on the part of a person ___________ without a corresponding right in favor of another, and vice-versa. A wrong or cause of action only arises _______________ ​

wrong/injury

The illegal invasion of a legal right.

wrong/injury

It is the wrongful act or omission which causes loss or harm to another.

damage

The loss, hurt, or harm which results from the injury.

damage

Denote the sum of money recoverable as amends for the wrongful act or omission or the recompense or compensation awarded or recoverable for the damage or loss suffered.

Real obligation

Personal obligation

Kinds of Obligation According to Subject Matter

Real Obligation

(Obligation to Give)

The subject matter is a thing which the obligor must deliver to the obligee.

Personal Obligation

(Obligation to Do or Not to Do)

The subject matter is an act to be done or not to be done.

Positive Personal Obligation

Obligation to do or to render service.

Negative Personal Obligation

Obligation not to do (which includes obligations “not to give”).

law

contracts

quasi contracts

delicts

quasi delicts

Sources of obligation

Law

Imposed by law itself; must be expressly or impliedly set forth and cannot be presumed.

law

Examples:

Obligation to pay taxes

Obligation of spouses to support each other in accordance with the provisions of the family code

Contracts

Arise from stipulations of the parties; meeting of minds. Must be complied with in good faith because it is the “law” between parties. Neither party may unilaterally evade his obligation unless:

contract authorizes it

other party assents or approves

Contracts

Examples:

Contract of Sale

Contract of Agency

lawful, voluntary, unilateral acts

unjustly enriched or benefited at the expense of another.

Quasi-contracts Arise from _____________ which are enforceable to the end that no one shall be _______________________

Negotiorum Gestio

Solutio Indebiti

example of quasi contracts

Negotiorum Gestio

Unauthorized Management; A juridical relation which arises when a person voluntarily takes charge of the agency or management of another’s abandoned or neglected business or property without the owner's authority.

Solutio Indebiti

Undue Payment; It is a juridical relation which arises when something is received when there is no right to demand it and it was unduly delivered through mistake.

Delicts

Arise from civil liability which is the consequence of criminal offense. Every person criminally liable for a felony is also civilly liable. ​

Quasi delicts

Arise from damage caused to another through act or omission, there being fault or negligence, but NO CONTRACTUAL RELATION EXISTS between the two parties.

Requisites

Damage suffered by the plaintiff.

Fault or negligence of the defendant​.

Connection of cause and effect between the fault or negligence of defendant and the damage incurred by the plaintiff.

Example

Dog owned by X is let loose and attacks his neighbor Y.

emanating from law

emanating from private acts

Classification of Sources

Licit acts(lawful)

Illicit acts(unlawful)

examples of private acts

Licit acts

Contracts and Quasi-Contracts

Illicit acts

May be either punishable by law (Delicts), or not punishable (Quasi-Delicts).​

article 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 civil code.

article 1158

unless the law expressly or plainly states, the obligation is not demandable or enforceable, and cannot be presumed to exist. There must be a clear provision.

obligor

Obligations from laws are not presumed because they are considered as a burden to the _____

Legal obligations

as the obligation to pay taxes, are obligations that must be followed and obediently abided, as it is stated by the law, may it be the Civil Code or in Special Laws (other laws not contained in the Civil Code).

article 1159

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

A meeting of minds between two (2) (or more) persons whereby one binds himself, with respect to the other, to give something or to render some service

what is a contract

contract

It is the formal expression by the parties of their rights and obligations they have agreed upon with respect to each other.

agreement

Obligations derived from contracts are unique because they are governed primarily by the __________ of the contracting parties.

contracts

are perfected by mere consent, and from that moment the parties are bound not only to the fulfillment of what has been expressly stipulated but also to all of the consequences which according to their nature may be in keeping with good faith, usage and law.

binding force

requirements for Valid contract

breach of contract

3 requirements for contracts

binding force

Contractual obligations have the force of law between the contracting parties. A contract must be valid and must not be against the law.

law, morals, good customs, public order, and public policy.

A contract is valid if it is not contrary to _____________

breach of contract

takes place when a party fails or refuses to comply, without legal reason or justification, with his obligation under the contract as promised.

good faith

Contracts must be complied with in ______

It means the performance is in accordance with the stipulations, clauses, terms and conditions of the contract.

good faith

is observed to prevent one party from taking unfair advantage over the other party.

article 1305

A contract is a meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service. (1254a)

Doctrine of obligatory/binding force

has the same binding effect as obligations arising from law. To be obligatory, the contract must be perfected,
VALID, and enforceable

article 1306/ Doctrine of autonomy

The contracting parties may establish such stipulations, clauses, terms and conditions as they may deem convenient,

Article 1308/Doctrine of mutuality of contracts

The contract must bind both contracting parties; its validity or compliance cannot be left to the will of one of them. (1256a)

right to enter into lawful contracts

constitutes one of the liberties of the people of the State.

government

In contracts where public interest is involved, the _________ has a right to intervene for the protection of the whole.

No. because before a contract can be enforced, it must first be valid, and it cannot be valid if it is against the law. ​

Are laws inferior to contracts

obligation

Result of a Contract, May be sourced elsewhere, no meeting of the minds

contract

Source of an Obligation, Only one source of an obligation, Presupposes a meeting of the minds.

quasi contract, 2142

A juridical relation 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. (Art. ______________)

quasi contract

There is no consent but the same is supplied by fiction law. In other words, 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. Meaning, consent is PRESUMED.

nominate, innominate

Kinds of Quasi-Contracts

nominate

quasi contracts Those which have been given a particular name.

innominate

Those which have not been given a particular name and not regulated by special provisions of the law. These are regulated by Arts. 2164 to 2175 of the NCC

negotiorum gestio, solutio indebiti

kinds of nominate quasi contracts

negotiorum gestio

Officious or voluntary management of the property or affairs of another without the knowledge or consent of the latter.

negotiorum gestio

Owner shall reimburse the gestor for necessary and useful expenses incurred by the latter for the performance of his function as gestor.

voluntary management

property must be neglected

voluntary management must not be authorized by the owner

management must be made in good faith.

Requisites of negotiorum gestio

no negotiorum gestio

This juridical relation does not arise in either of these instances:​

When the property or business is not neglected or abandoned, in which case the provisions of the Civil Code regarding unauthorized contracts (Arts. 1317, 1403[1], 1404.) shall govern; or​

If, in fact, the manager has been tacitly authorized by the owner, in which case the rules on agency shall govern. (Art. 2144.)​

the quasi-contract ceases to exist

what happens when the owner of the property or business has knowledge of the management?

produces the effects of an express agency, even if the business may not have been successful

what is the effect of the ratification of the owner of the business​?

risky operations

own interest to that of the owner

fails to return the property

management in bad faith

when is the gestor or officious manager liable for fortuitous events? ROFM

Solutio Indebiti 2154

Juridical relation which is created when something is received when there is no right to demand it and it was unduly delivered through mistake.

solutio indebiti

The obligation to pay money mistakenly paid arises from the moment said payment was made, and not from the time the payee admits the obligation to reimburse.

must be a payment for the delivery made by one person to another;​

paid was under no obligation to do so;​

payment by reason of a mistake.

Requisites of solutio indebiti

PUR

Payment is made when there exists no binding relation between the payor, who has no duty to pay, and the person who received the payment; and

The payment is made through mistake

elements of solutio indebiti

2156

If the payer was in doubt whether the debt was due, he may recover if he proves that it was not due