Week 2-General Provisions on Obligations (Articles 1156-1162) Definition:
Art. 1156. An obligation is a juridical necessity to give, to do or
Book IV-Obligations & Contracts not to do.
While the title is Obligations and Contracts, it should only be Critics say that this definition is substantially inadequate or at the very
Obligations, since by including; least, incomplete, because it only considers the point of view of the
-Contracts in the title, it is putting the latter on equal footing with the debtor. Obligations are bilateral. For it to be complete, it must cover
former, but this is not correct since contracts is only one of the both the point of view of the debtor and the creditor.
sources of obligations.
An obligation is a juridical relation whereby a person (called the
Obligations is the most important, most abstract and most difficult of creditor) may demand from another (called the debtor) the observance
all of civil law. It is the entirety of private law. If you don't know of a determinative conduct (the giving, doing or not doing), and in
obligations and contracts, you will never understand commercial law. case of breach, may demand satisfaction from the assets of the latter. -
Arias Ramos
Etymology
"Ob" "Ligare"-To Bind Characteristics of Obligations
1. It represents an exclusively private interest.
Initially it referred to the physical act of being chained with
shackles. 2. It creates ties which are by nature transitory.
In early Roman Society, the term ligation (bond), was
frighteningly literal. The creditor could, upon breach by the debtor, Because obligations are extinguished. But the period is relative could
put the poor violator in chains, have him sold into slavery, and even be seconds (eg, buying softdrinks) and could be years (eg.,
have him chopped to pieces. parmership, lease)
As time passed, cruelty softened. The law on obligations, like
all organic things, has undergone, and continues to undergo, a process 3. It involves the power to make the juridical tie defective in case of
of evolution. Eventually, obligation did not mean anymore vinculum non-fulfillment through satisfaction of the debtor's property.
of chains but vinculum juris (bond of law). Obligation became
metaphorical and not literal
Essential Elements/Requisites of Obligations Example:
A makes a promissory note payable to B or order. In this case, the
1. Active Subject (Creditor/Obligee) creditor is not necessarily C. The creditor is either C or to whomever
The active subject is called a creditor if the obligation is to the promissory note is endorsed.
give. The active subject is called an obligee if the obligation is to do
If A issues a check payable to bearer. The passive subject, A, is
2. Passive Subject (Debtor/Obligor) determinate but the active subject, the bearer of the check, is
The passive subject is called a debtor if the obligation is to determinable.
give. The passive subject is called an obligor if the obligation is to do
At the time of the birth of the obligation, the payee is not yet known
Re 1 & 2 but the obligation is valid.
-Subjects are always persons whether juridical or natural
-Active and Passive Subjects must be Determinate or Determinable C. Subjects are determined on the basis of their relation to a thing and
therefore change as the ownership of the thing changes hands. (eg.
Variations of Determinability Mortgage obligations)
a. Subjects are completely and definitely identified at the moment of Example:
constitution of the obligation. (eg. Contract of Sale between X as
vendor and Y as vendee) A mortgaged property to B pursuant to a loan. The mortgage attaches
to the property. If A sells the property to C, the annotation in the
b. One party is determined at the time of the constitution of the Certificate of Title will follow the property and C becomes the liable
obligation and the other is to be determined subsequently in with respect to the said property even if C is not the original
accordance with the criterion initially established. (eg, Negotiable mortgagor. If A does not pay, B goes against C with respect to the
instruments payable to beater or order) property.
The passive subject in this case is whoever owns the land. B does not
care whether it is A or C
3. Object (Prestation) Example of determinable.
I promise to sell you my rice field in Bicol in November (will
The object of the obligation is the prestation to be performed become determinate when time comes).
by the debtor. Thus, the object always constitutes an act, or conduct,
or activity (or in negative obligations, abstention from an activity).
4. Legal Bond/Tie (Vinculum Juris)
The object of the obligation always consists in an activity or conduct
to be observed by the debtor towards the creditor. This conduct to be The vinculum juris is the central element of the obligation, its very
observed is also known as the prestation. essence. Basically, the vinculum juris is what compels the debtor to
perform, it is that which makes the performance of the obligation
In a contract of sale of a car, the object of the obligation is the demandable and enforceable in the courts of law.
delivery of the ownership of the car by the vendor to the vendee. It is
not the car, but the act of delivery that constitutes the object or Article 1347. All things which are not ourade the commurce of
prestation. The car, properly speaking, is the object of the prestation, men, including future things, may be the object of a contact.
not of the obligation.
All rights which are not intransimissible may also be the
Requisites of Object or Prestation object of contracts
a. It must be Licit (Art. 1347 and 1409(1) No contract may be emered to open future inheritance except
Example: Parties cannot validly enter into a contract for sale in cases expressly authorized by law.
of sexual services All services which are not contrary to law, morals, good
customs, public order or public policy may likewose be the object of a
b. It must be Possible (Art. 1348 and 1409(5)) contract. (1271a).
This is determined by rules of experience.
Article 1409. The following contract are inexistent and void from
c. It must be Determinate or Determinable (Art. 1349 and the beginning
1409(6)") (1) Those whose cause, object or purposes contrary law, morals, good
Example of not determinate or determinable: customs, public order or public policy.
Cannot say that I promise to sell you something.
Example of determinate Article 1348. Impossible things or service cannot be the object of
I promise to sell you my car. contract (1272)
The object of an obligation answers the question - What
Article 1409. The following contract are inexistent and void from (quid) is owed?
the beginning The causa answers the question -Why (cur) is it owed?
(5) Those which contemplate an impossible service
Example: A will deliver a car to B since A expects to get Php500,000.
Article 1349. The object of every contract must be determine as to The Php300,000 is the causa of the obligation.
its kind. The fact that the quantity is not determinate shall not be
an obstacle to the existence of the contract, provided it is possible 2. Form - This does not imply that there is a certain specific form that
to determine the same, without the need of a new contract an obligation must take, but that there must exist certain external
between the parties. (1273) manifestations or bases from which the obligation arises.
Article 1409. The following contracts are inexistent and void from Three species of obligations:
the beginning: To Give - Real Obligation (Positive Real Obligation)
(6) Those where the intention of the parties relative to the principal To Do-Personal Obligation (Positive Personal Obligation)
object of the contract cannot be ascertained; Not To Do - (Negative Personal Obligation) (Embraces all negative
obligations including Not To Give - Negative Real Obligation)
The vinculum juris is the legal tie. It consists of the
enforceability of the obligation. If the debtor does not conform, the Article 1157. Obligations arise from:
creditor has the power to go to court to make the debtor perform-
coercive. (1) Law;
What makes an obligation is the power of the creditor to haul (2) Contracts,
the debtor before the court, summoning powers of the state if needed. (3) Quasi-contracts;
Voluntariness goes into entering into an obligation. But once (4) Acts or omissions punished by law, and
you enter, it becomes involuntary. (5) Quasi-delicts. (1089)
Some commentators, in addition to these four elements, mention Law
two others: Article 1158. Obligations derived from law are not presumed. Only
1. Causa (causa debendi or causal obligationis) - raison d'etre those expressly determined in this Code or in special laws are
(reason for being or existence) demandable, and shall be regulated by the precepts of the law which
establishes them, and as to what has not been foreseen, by the enumerated in Article 1157. Law is therefore both an immediate and
provisions of this Book (1090) ultimate source
Law is the ultimate source, and only the ultimate source, of all Contracts
obligations. An obligation exists because of the vinculum juris which Article 1305. A contract is a meeting of minds between two persons
is created by law. Without law, there is no legal tie (which is what whereby one binds himself, with respect to the other, to give
vinculum juris means). something or to render some service. (12543)
Law as a proximate source: Article 1159. Obligations arising from contracts have the force of law
between the contracting parties and should be complied with in good
In what sense, then, is law one among several sources of obligations? faith. (10912)
In the proximate sense. Law, therefor, is both the sole ultimate source
and one of various proximate sources of obligations. It is in this latter Legal Principles embodied in Article 1159
sense that this article, and the preceding one, should be understood. Pacta Sunt Servanda-Agreements must be kept
Bena Fides-Compliance in Good Faith
Many obligations arise directly or proximately from law, without any
contractual transaction, or tortious or criminal act, or any conduct Article 1306. The contracting parties may establish such stipulations,
which may constitute a squasi-contract clauses, terms and conditions as they may deem convenient, provided
they are not contrary to law, morals, good customs, public order, or
Obligations derived proximately from law are scattered throughout public policy. (1255a)
the Code and are found in numerous special laws. For this reason, the
Code does not devote any separate portion in this Book (Book IV) to This is the basis of the parties freedom to stipulate. The parties to a
law as a source of obligations, as it does to other sources. contract can validly make stipulations or agreements as long as those
are not contrary to law, morals, good customs, public order, or public
There is really only one source of obligations just law. Without the policy.
law saying that a particular contract is enforceable, the contract will
not give rise to an obligation. However, source can be understood in
both the ultimate and immediate sense. In the ultimate sense, law is
the solitary source. In the immediate sense, there are 5, those
Quasi-Contracts Personal Injury-Injury caused to the private offended party or the
Article 1160. Obligations derived from quasi-contracts shall be victim by reason of the actions of the offender which resulted to a
subject to the provisions of Chapter 1, Title XVII, of this Book. (n) crime. During trial, the victim is treated as the man witness to the
commission of the crime. The interest of the private offended party in
The provisions on quasi-contracts are found in Articles 2142 to 2175 a criminal case is limited only to the civil aspect, that is, more often
of the Civil Code of the Philippines than not, the payment of damages.
Negotiorum Gestis (Art. 2144 to 2153) General Rule: If you commit a crime, you are liable both
Solutio Indebiti (Art. 2154 to 2175) criminally and civilly.
Delicts Exception: When there is no private offended party (victimless
Article 1161. Civil obligations arising from criminal offenses shall be crimes). You are only liable criminally.
governed by the penal laws, subject to the provisions of article 2177,
and of the pertinent provisions of Chapter 2, Preliminary Title, on Quasi-Delicts
Human Relations, and of Title XVIII of this Book, regulating Article 1162 Obligations derived from quasi-delicts shall be
damages. (1092a) governed by the provisions of Chapter 2, Title XVII of this Book,
and by special laws. (1093)
Revised Penal Code Article 100. Civil liability of a person guilty of
felony. Every person criminally liable for a felony is also civilly liable Article 2176. Whoever by act or omission causes damage to
another, there being fault or negligence, is obliged to pay for the
Public and Private Aspects of a Crime: damage done. Such fault or negligence, if there is no pre-existing
contractual relation between the parties, is called a quasi-delict
When a person commits a crime, such person causes two classes of and is governed by the provisions of this Chapter. (1902a)
injuries, namely:
Article 2177. Responsibility for fault or negligence under the
Social Injury Injury caused to the State or Society due to the preceding article is entirely separate and distinct from the civil
violation of its laws which should not have been transgressed. The liability arising from negligence under the Penal Code. But the
public offended party is the State, hence, a criminal case is entitled plaintiff cannot recover damages twice for the same act or
People of the Philippines vs. Accused. Criminal liability entails omission of the defendant. (n)
imprisonment, or fine, or both, as penalty.
Article 2178. The provisions of articles 1172 to 1174 are also Employers shall be liable for the damages caused by their employees
applicable to a quasi-delict. (п) and household helpers acting within the scope of their assigned tasks,
even though the former are not engaged in any business or industry.
Article 2179. When the plaintiff's own negligence was the
immediate and proximate cause of his injury, he cannot recover The State is responsible in like manner when it acts through a special
damages. But if his negligence was only contributory, the agent, but not when the damage has been caused by the official to
immediate and proximate cause of the injury being the whom the task done properly pertains, in which case what is provided
defendant's lack of due care, the plaintiff may recover damages, in article 2176 shall be applicable
but the courts shall mitigate the damages to be awarded. (n)
Lastly, teachers or heads of establishments of arts and trades shall be
Vicarious Liability liable for damages caused by their pupils and students or apprentices,
Article 2180. The obligation imposed by article 2176 is so long as they remain in their custody.
demandable not only for one's own acts or omissions, but also for
those of persons for whom one is responsible. The responsibility treated of in this article shall cease when the
persons herein mentioned prove that they observed all the diligence of
The father and, in case of his death or incapacity, the mother, are a good father of a family to prevent damage. (1903a)
responsible for the damages caused by the minor children who live in
their company. There can be multiple sources of civil liability:
Guardians are liable for damages caused by the minors or Example Scenarioc There is a vehicular accident in which the
incapacitated persons who are under their authority and live in their passenger was injured
company.
Calpa Contractual-Breach of Contract
The owners and managers of an establishment or enterprise are The employer/owner/operator alone should be sued. The
likewise responsible for damages caused by their employees in the employee/driver cannot be held Hable
service of the branches in which the latter are employed or on the
occasion of their functions. Culpa Aquiliana-Quasi-Delict
Injured party may proceed against the employer alone
(without impleading the employee), the employee alone, or both the
employer and the employee as solidary obligors,
Liability of the employer is direct and immediate negligence in the of the voluntary duty assumed by the parties when entering into the
selection and supervision contractual relation.
Delito-Crime Quasi-delict is a civil law term while tort is a common law term.
The employee should be sued, since he is the person sought to
be held criminally liable Difference between Contractual Liability and Quasi-Delict:
The final conviction of the employee will make him liable for
the civil liability arising from crime. If the debtor is insolvent, the In quasi-delict, the obligation arises only when there is a violation.
employer (who is subsidiarily kable) will be liable to pay the civil Without violation, there is no obligation. It is the breach itself which
indemnity. gives rise to the obligation.
Cangos r. Mamla Ratimad (G.R. No. L-12191, October 14, 1918) In contracts, there is already an obligation which exists prior to or
even without a breach. The breach of the contract is immaterial to the
Every legal obligation must of necessity be extra-contractual or legal obligation.
contractual. Extra-contractual obligation has its source in the breach
or omission of those mutual duties which civilized society imposes Example for Contract: Contract of sale of watch. If both parties
upon it members, or which arise from these relations, other than perform their obligation, the contract is extinguished. There is no
contractual, of certain members of society to others, generally breach, but there is an obligation.
embraced in the concept of status. The legal rights of each member of
society constitute the measure of the corresponding legal duties, Example for Quasi-Delict: Driving recklessly, A hits a child. When
mainly negative in character, which the existence of those rights did the obligation came to being? When there was injury due to
imposes upon all other members of society. The breach of these negligence. (Negligence per se does not give rise to a quasi delict
general duties whether due to willful intent or to mere inattention, if unless there is injury.)
productive of injury, give rise to an obligation to indemnify the
Breach and quasi-delict are inseparable.
injured party. The fundamental distinction between obligations of this
character and those which arise from contract, rests upon the fact that But contract and breach may be separable.
in cases of non-contractual obligation it is the wrongful or negligent
act or omission itself which creates the vinculum juris, whereas in
contractual relations the vinculum exists independently of the breach
