Book I - Persons and Family Relations

Book II - Property

Book III Succession

Book IV Obligations and Contracts

Juridical necessity to comply with a prestation

Legal relation established between an obligor

and obligee, the first us bound to the
fulfillment of a prestation which the second
may demand of him

Juridical or legal tie (Vinculum juris; efficient cause)

Active subject (obligee/creditor)

Passive subject (obligor/debtor)

Fact/ prestation/ service (object of the obligation)

Form*

(*not

essential)

Application of the essential

requisites of an obligation
Under a building contract, X bound himself to
build a house for Y for P 1,000,000.00.
On or before April 15 of each year, T, a doctor,
pays his income tax and file the necessary income
tax return with the BIR.

obligation, right and

wrong
obligation is the act or performance which the law
will enforce
right is the power which a person has under the
law, to demand from another any prestation
wrong/cause of action is the act or omission of
one party in violation of the legal right/s of another;
use of the term injury

Enforcement
(a) civil obligation
(b) natural obligation

Subject matter
(a) real obligation (to give)
(b) personal obligation (to do/not to do/not

to give)

-positive personal vs. negative personal obligation

Persons obliged
(a) unilateral
(b) bilateral

Pure and conditional (Arts. 1179-1192)

With a period (Arts. 1193-1198)

Alternative and facultative (arts. 1199- 1206)

Joint and solidary (Arts. 1207-1222)

Divisible and indivisible (Arts. 1223-1225)

With a penal clause (Arts. 1226- 1230)

Law (Art. 1158)

Contracts (Art. 1159)

Quasi-contracts (Art. 1160)

Delicts (Art. 1161)

Quasi- delicts (Art. 1162)

Examples:
(1)Gambling:.No

action can be maintained by the winner for

the collection of what he has won in a game of chance. But

any loser in a game of chance may recover his loss from
the winner, with legal interest from the time he paid the
amount lost, and subsidiarily from the operator or
manager of the gambling house (Art. 2014, Civil Code)

(2) Obligation of a spouse (Family Code of the

Philippines)
(3) Obligation of employers (Labor Code of the
Philippines)
(4) Easements/ servitudes (Property, Civil Code)

Art. 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.

Governed by the agreement of parties (binding force; valid

contract)

Not contrary to law, morals, good customs, public order or

public policy

Compliance in good faith

Negotiorum gestio

Art. 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.

Solutio indebiti

Art. 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.

Short Quiz (5 points each)

1. Explain the objective of a quasi- contract.
2. Enumerate the obligations of one obliged to give a determinate thing.
3. Why are obligations arising from contract have the force of law? Explain.

A person who is criminally liable is also civilly

liable. (exception- justifying circumstances in
criminal cases like self-defense, obedience to a
lawful order)

Effect of acquittal

Mang Piolo, a taxi driver, failed to check the

brake fluid of his car. As a result, while passing
the Macapagal Road in Pasay City, he collided
with another vehicle owned by Mang Maeng,
causing (a) damage to the latters vehicle and (b)
physical injuries of Neneng,
passenger that time

the taxi drivers

The ordinary care that an average or reasonably

prudent person exercises over his property
(preservation of thing)

Another standard of care may be required by

law or by stipulation of the parties

FORCE MAJURE /act of GOD

Right to the Fruits from the time obligation to

deliver arises

Real right over the fruit until delivered

Specific Thing v. Generic Thing

Specific is designated or physically segregated

from others of the same class.
Generic refers to a class or genus and cannot be
determined with particularity.

To deliver a thing which must neither be of

superior nor inferior quality

To pay damages in case of breach

To deliver the thing which he has obligated

himself to give

To take care of the thing with the proper

diligence of a good father of a family

To deliver all the accessions and accessories

(Art. 1166)

To pay damages in case of breach

Accessions fruits of a thing or additions to or improvement upon a

thing
Accessories joined to or included with the principal thing for
embellishment, better use or completion.
Rules:

Accessories follow the principal

But obligation to deliver accessions or accessories does not include

the principal

Accessions are not necessary to the principal thing

Accessory and principal thing must go together

Both can exist in relation to the principal

OBLIGATION
To Give Determinate Thing
(specific real obligation)

To Give Indeterminate Thing

(generic real obligation)

REMEDY
(1) To compel specific performance
(2) To recover damages

(1) To ask for performance of the obligation

(2) To ask that obligation be complied with
by another at expense of debtor
(3) To recover damages

To Do

(1) To have the obligation performed at

(positive personal obligation) debtors expense

(2) To recover damages

Not to Do

(1) Undone at his expense and/or

(negative personal obligation) (2) To recover damages

Voluntary Breach

Default/Delay

Fraud

Negligence

In contravention of the tenor

Involuntary Breach

Fortuitous event

Failure of the debtor to perform his obligation

on the date agreed upon

Demand made either judicial or extrajudicial

Failure to comply with such demand

Queries:

Is the obligation due and demandable?

Who has the burden to prove the above?

When obligation or law expressly so declares

Time is of the essence (controlling motive)

When demand would be useless

In reciprocal obligation, from the moment one party fulfills

his obligation, delay by the other begins

Deliberate or intentional evasion of the normal

fulfillment of an obligation

Dolo incidente (Incidental Fraud) vs. Dolo

causante (Causal Fraud)

Demandable in all obligations

Waiver of future fraud is void

Omission of that diligence which is required by the

nature of the obligation, but no malice

Culpa contractual (contractual negligence)

-Negligence in the performance of contractual obligation

Culpa aquiliana (civil negligence)

-Negligence between parties not so related by any pre-existing contract

Culpa criminal (criminal negligence)

- Negligence resulting in the commission of a crime

FRAUD

NEGLIGENCE

Deliberate intention to cause damage No intention

or injury
Waiver of liability for future fraud is
void
Must be clearly proved

Cannot be mitigated or reduced by

the courts

Waiver may be allowed

Presumed in contracts
May be reduced by the courts

Nature of the obligation

Circumstances of the person

Circumstances of time

Circumstances of the place

Any event which cannot be foreseen or which though foreseen

is inevitable, independent of the will or from aggravation of
the debtor, render impossible the fulfillment of obligation

Obligor is not liable EXCEPT WHEN:

Where expressly specified by law or stipulated in contract

When nature of the obligation requires assumption of risk

When debtor incurs delay

When debtor promises to deliver same thing to two or more persons

When obligation to deliver arises from criminal offense

When obligation is generic

Simple loan or mutuum

Recovery of interest vs. usury

Presumption of payment of interest

Presumption of payment of prior installment

Kinds of presumption: conclusive vs. disputable

Presumptions do not apply:

1. reservation as to interest
2. receipt without indication of particular installment
3. payment of taxes
4. non-payment proven

Exact fulfillment with damages

Attachment

Exercise other rights (like collect from the

debtor of the debtor)

Rescind/impugn acts to defraud the debtor

All rights are generally transmissible EXCEPT:

1. Prohibited

by law partnership, agency,

commodatum
2. Prohibited

by stipulation of parties

Pure and conditional (Arts. 1179-1192)

With a period (Arts. 1193-1198)

Alternative and facultative (arts. 1199- 1206)

Joint and solidary (Arts. 1207-1222)

Divisible and indivisible (Arts. 1223-1225)

With a penal clause (Arts. 1226- 1230)

Unilateral and bilateral

Real and personal

Determinate and generic

Civil and natural

Legal, conventional and penal

Arts. 1179 to 1192

Suspensive condition- fulfillment give rise to an

obligation acquisition of rights

Resolutory condition- fulfillment extinguishes

obligation loss of rights acquired

Obligation subject to a period future and

certain event an obligation arises or is
extinguished

When debtors means permits him to pay is an

obligation with a period

Rule: Apply Article 1197, Civil Code- court to fix

the period

CRITERIA

KINDS OF CONDITIONS

As to effects

Suspensive

As to form

Express

As to possibility

Possible

As to cause or origin

Potestative

As to mode

Mixed
Positive

As to numbers

Conjunctive

As to divisibility

Divisible

Resolutory
Implied

Impossible
Casual

negative
Disjunctive
Indivisible

Acquisition of rights

Loss of rights aquired

Potestative, suspensive (debtor) void

Potestative, resolutory (debtor) - valid

Potestative,suspensive (creditor) valid

Casual ( chance /3rd person)- valid

Mixed (combination of chance and 3

valid

rd

person-

Physical impossible conditions

Legally impossible conditions

Not applicable to negative obligations

Applicable to affected obligations

Divisible obligations

Obligation is extinguished:
(1) as soon as the time expires(without the
event)
(2) it has become indubitable that the event
not take place although the time has

will

not expired

Obligation will become effective:

(1)From

the moment the time indicated has

elapsed without the event taking place;

(2)From

the moment it has become evident that

the event cannot occur, although the time

indicated has not yet elapsed

Obligor voluntarily prevents its fulfillment

Also applicable to resolutory condition

Obligation to give on the day obligation is

constituted

Fruits and interests in obligation to give- no

retroactive effect (being reciprocal)

Unilateral- generally not retroactive (being

gratitous vs. onerous)

CREDITOR action for the preservation of his

rights

DEBTOR- Recover payment by mistake (solutio

indebiti)

Conditions

Effect/s

Loss without the debtors fault

Obligation is extinguished debtor not

Loss with the debtors fault

liable
Creditor to demand damages

Deterioration without the debtors

Creditor will suffer the deterioration

debt

rescission of the obligation and its

Improvement by its nature, or by

damages
inure to the benefit of the creditor

fault
Deterioration through the fault of the creditor may choose between the

time
Improvement at the expense of the
debtor

fulfillment, with indemnity for

Right of usufructuary of the debtor

In obligations to give (specific thing; cash)

In obligations to do/not to do- Court determine

the retroactive effect

Unilateral

Bilateral (reciprocal/non-reciprocal)

Remedies in reciprocal:
- specific performance with damages OR
- rescission of obligation with damages

First infractor known- reduced liability(equitably

tempered by the courts)

First infractor cannot be determined contract

deemed extinguished ; each bear his own
damages

(ARTICLES 1193-1198)

The consequences are subjected in a way or another to

the expiration of a period or term

future and certain event

Period vs. condition

(fulfillment, time, effect on debtors will, retroactive

effect)

kinds of periods
(effect, source, definiteness)

Applies to obligation to give

Principle of unjust enrichment (solutio indebiti);

recovery of advance payment with interests/
fruits

Debtor presumed to be aware of the period he

must prove that he is unaware or believing that
the obligation has become due and demandable

Presumption: benefit of both the creditor and

obligor

Computation of period (Art. 13, Civil Code)

Exceptions:

(1) term for the benefit of the debtor alone;

(2) Term for the benefit of the creditor alone.

If the obligation (a) does not fix a period but a period

was intended (b) depends upon the will of the debtor

Note suspensive period vs. suspensive condition as to

will of the debtor

When period cannot be changed by the courts

(1) period agreed and lapsed
(2) period fixed by the court with the consent
of the parties

Debtor becomes insolvent, unless he gives guaranty or

security

When debtor does not furnish guaranties or securities

promised

When guaranties or securities impaired or disappeared

When debtor violates an undertaking

When debtor attempts to abscond

(ARTICLES 1199 TO 1206)

Alternative several objects or prestations but performance of one

sufficient, choice belongs to the debtor unless expressly given to the

creditor

Facultative One object or prestation but debtor may substitute

Conjunctive -all prestations must be performed to extinguish obligation

Disjunctive- one or some prestations must be performed to extinguish

obligation

Rule: DEBTOR (facultative)

Exception: expressly granted to the CREDITOR

(alternative)

Limitations to the right to choose:

1. impossible
2. unlawful
3. could not be the object of obligation
4. only one prestation is practicable
5. part of one and part of another prestation

Effect of notice

Proof and form of notice

Condition: the other prestation becomes

impossible

Obligation is no longer alternative but becomes

a simple obligation

Concept of rescission

Creditor is at fault why debtor cannot make a

choice

1.

the object of the obligation have been lost, or

2.

the compliance of the obligation has become

impossible

If lost due to fortuitous event

If two or more objects remain, the obligation subsists

If only one object remain, it becomes simple

obligation

If none remains, obligation is extinguished

If lost due to fault of debtor

If lost due to fault of debtor

When right of choice belongs to debtor

If 2 or more objects remain, debtor can choose from remaining, not
liable for damages

If only one remain, simple obligation to deliver remaining

If none remains, debtor indemnify damages based on value of last

object

When right of choice belongs to creditor

If alternative object still remain, creditor can choose the one lost and

ask value of object lost and damages; if creditor choose the remaining
object, debtor cannot be liable for damages

If none remains, debtor to indemnify for damages based on the price of

the object chosen by the creditor plus consequential damages

Right of choice only to debtor

If lost before substitution, debtor not liable.

Debtor liable for loss due to his fault once

substitution has been made

If after substitution, it is lost thru fortuitous

event, obligation extinguished, debtor not liable

As to:

ALTERNATIVE

FACULTATIVE

Number of

Several due but one is

Only one prestation is

prestations

sufficient

due but with a

substitute

Right of choice

Creditor or 3rd person

Debtor

Loss through

Does not extinguish the

Loss of the thing due

fortuitous event

Loss through fault

of debtor

obligation

extingushed the
obligation

(a)Loss of one of the

Debtor liable

the debtor

before the substitution

alternatives no liability of
(b) If choice belongs to the
creditor, the loss of one
alternative-liability

Loss of substitute
not liable

Articles 1207- 1222

Joint Obligation Each of creditor has right to demand,

and each debtor is bound to render compliance, with his
proportionate part of the prestation

Solidary Obligation Each creditor has a right to

demand, and each debtor is bound to render compliance,

with the entire prestation; but as to co-debtor he is liable

only for his share

Default rule is obligation is JOINT

Joint creditor cannot act in representation of the

other creditors

Joint debtor cannot be compelled to answer for

liability of other debtors

Jointly, We promise to pay, Pro rata,

proportionately, mancomunada

Each creditor has a right to demand, and each

debtor is bound to render compliance, with the
entire prestation

but as to co-debtor he is liable only for his

share

When obligation expressly states so

When law requires solidarity (see enumeration)

When nature of obligation requires solidarity

(example, the Kabit system in
transportation)

1. If 2 or more heirs take possession of estate

2. Partners in partnership
3. If principal allowed agent to act as though
he has full power
4. If 2 or more appointed an agent for
common undertaking or transaction
5. 2 or more bailees to whom a thing is
loaned

6. 2 or more officious managers, unless

management was assumed to save thing from
imminent danger
7. 2 or more persons liable for quasi delict
8. 2 or more payees when there has been
payment of what is not due
9. Principal, accomplices, and accessories of a
felony.

Solidarily

Jointly and severally

in solidum, together and/or separately

I promise to pay signed by 2 or more

Creditors and debtors need not be bound in the same

manner and by the same periods and conditions

As to parties bound:

Passive (debtors)
Active (creditors)
Mixed (creditor/s and debtor/s)

As to source:

Conventional
Legal
Real

Joint liability of parties is proportionate

Indivisible object/subject matter is not

physically divisible

Liability converted as damages

INDIVISIBILITY

SOLIDARITY

Refers to prestation

Refers to the juridical tie

Only the debtor guilty of breach is

All of the debtors are liable for the

Can exist even if there is only one

At least 2 debtors/creditors

Others are not liable in case of

Other debtors are proportionately

liable for damages

debtor/creditor

insolvency of one debtor

breach committed by a debtor

liable

Accessory undertaking to assume greater

responsibility

the penalty shall substitute the indemnity for

damages and the payment of interests in case of
noncompliance, if there is no stipulation to the
contrary.

As to purpose:

Punitive
B. Reparatory

As to effect:

Subsidiary
B. Complimentary

As to source:

Conventional
B. Legal

damages shall be paid if the obligor refuses to

pay the penalty or is guilty of fraud in the
fulfillment of the obligation.

The debtor cannot exempt himself from the

performance of the obligation by paying the

penalty, save in the case where this right has

been expressly reserved for him.

Neither can the creditor demand the fulfillment

of the obligation and the satisfaction of the

penalty at the same time, unless this right has

been clearly granted him. Exception: impossible

without his fault, the penalty may be enforced

Suffered by the creditor is not necessary in

order that the penalty may be demanded

(1)

When the principal obligation has been partly

or irregularly complied with by the debtor ; or

(2)

If its iniquitous or unconscionable

The nullity of the penal clause does not carry

with it that of the principal obligation.

The nullity of the principal obligation carries

with it that of the penal clause