Art. 1156 An obligation is a juridical necessity to give to do or not to do.

Obligation (Latin word: obligatio) tying or binding

- tie or bond recognized by law by virtue of w/c one is bound in favor of another to render something in giving a thing, doing a certain act, or not doing a certain act.

Art. 1156: definition of obligation in its passive aspect. Stresses the duty of the debtor or obligor when it speaks of obligation as a juridical necessity.

----> in case of noncompliance, the courts may be called upon to enforce its fulfillment or the economic value that it represents. The debtor must comply with his obligation whether he likes it or not; otherwise, his failure will be visited with some harmful or undesirable consequences.

Nature of obligations

Civil obligations obligations w/c give to the creditor or oblige a right under the law to enforce their performance in courts of justice

Natural obligations - not being based on positive law but on equity and natural law, do not grant a right of action to enforce their performance

Essential requisites of an obligation

(1) Passive subject (debtor/obligor) bound to the fulfillment of the obligation; he who has a duty

(2) Active subject (creditor/obligee) entitled to demand the fulfillment of the obligation; he who has a right.

(3) Object/prestation (subject matter) the conduct required to be observed by the debtor

(4) Juridical/Legal tie (efficient cause) w/c binds or connects the parties to the obligation.

Forms of obligation

- refer to the manner in w/c an obligation is manifested or incurred. May be oral, in writing or part oral/writing.

GR: law does not require any form in obligations arising from contracts for their validity or binding force.

2) Obligations arising from other sources do not have any form at all.

(1) obligation the act or performance w/c the law will enforce

(2) right the power w/c a person has under the law, to demand from another any prestation

(3) wrong (cause of action) an act or omission of one party in violation of the legal right/s of another.

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

Essential elements of a legal wrong or injury

(a) Legal right in favor of a person (creditor/plaintiff/obligee)

(b) A correlative legal obligation on the of another (obligor/debtor/defendant); to respect or not to violate said right

(c) Act or omission by the latter in violation of said right w/ resulting injury or damage to the former.

*a wrong or cause of action only arises at the moment a right has been transgressed or violated.

Kinds of obligation according to subject matter

(1) Real obligation (obligation to give) that in w/c the subject matter is a thing w/c the obligor must deliver to the obligee.

(2) Personal obligation (obligation to do or not to do) that in w/c the subject matter is an act to be done or not to be done.

2 kinds of personal obligation

(A) Positive personal obligation (obligation to do or to render service)

(B) Negative personal obligation (obligation not to do)

Art. 1157 Obligations arise from:

(1) Law;

(2) Contracts;

(3) Quasi-contracts;

(4) Acts or omissions punished by law;

(5) Quasi-delicts

Source of obligations

(1) law when they are imposed by law itself.

(ex. Obligation to pay taxes)

(2) contracts when they arise from the stipulation of the parties.

(ex. Obligation to repay a loan or indebtedness by virtue of an agreement)

(3) quasi-contracts arise from lawful, voluntary and unilateral acts w/c are enforceable to the end. (obligations may be considered arising from law)

(4) crimes or acts or omissions punished by law arise from civil liability w/c is the consequence of a criminal offense.

(5) quasi-delicts or torts arise from damages caused to another through an act or omission, there being fault or negligence, but no contractual relation exists between the parties.

Examples: the obligation of the head of a family that lives in a bldg. or a part thereof to answer for damages caused by things thrown or falling from the same; the obligation of a possessor of an animal to pay for the damage w/c it may have caused.

Sources of obligation

(1) Those emanating from law

(2) Those emanating from private acts:

a. Arising from licit acts, in the case of contracts and quasi-contracts

b. Arising from illicit acts, w/c may be either punishable in the case of delicts/crimes, or not punishable in the case of quasi-delicts/torts

*actually, there are only 2 sources: law and contracts, because obligations arising from quasi-contracts, delicts and quasi-delicts are really imposed by law.

Art. 1158 Obligations derived from law are not presumed. Only those expressly determined in this code or in special law are demandable, and shall be regulated by the precepts of the law w/c establishes them; and as to what has not been foreseen, by the provisions of this book.

Art 1158 refers to legal obligations or obligations arising from law. They are not presumed because they are considered a burden upon the obligor. They are the exception, not the rule. To be demandable, they must clearly set forth in the law.

1) an employer has no obligation to furnish free legal assistance to his employees because no law requires this. An emp may not recover from his employer the amount he may have paid

2) private school has no legal obligation to provide clothing allowance because there is no law which imposes this obligation upon schools. But a person who wins money in gambling has the duty to return his winnings to the loser.

Art. 1158 special laws refer to all other laws not contained in the civil code. (corpo code, negotiable..)

Art. 1159 Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith.

-- speaks of contractual obligations or obligations arising from contracts or voluntary agreements. It presupposes that the contracts entered into are valid and enforceable.

Contract meeting of the minds bet. two persons whereby one binds himself, w/ respect to the other, to give something or to render some service.

(1) Binding force contract must be valid and it cannot be valid if it is against the law.

(2) Requirement of a valid contract - contract is valid (assuming all essential elements are present) if it is not contrary to law, morals, good customs, public order and public policy. Invalid if it is against abovementioned.

*in the eyes of the law, a void contract does not exist. No obligations will arise. A contract may be valid but cannot be enforced.

Compliance in good faith compliance or performance in accordance with the stipulations or terms or the contract. Sincerity and honesty must be observed.

Ex. (1) if S agrees to sell his house to B and B agrees to buy it, voluntary and willing, then they are bound by the terms of their contract. They cant withdraw or escape from the obligations. That w/c is agreed upon in the contract is the law between S and B and must be complied with in good faith.

(2) a contract whereby S will kill B in consideration of 1000 to be paid by C is void and non-existent because killing a person is contrary to law. Rendering domestic service gratuitously until the loan is paid is contrary to law and morals. Both in (2) cases, S has no obligation to comply.

Art. 1160 Obligations derived from quasi-contracts shall be subject to the provision of Chap. 1, Title XVII of this Book.

--- treats of obligations arising from quasi-contracts or contracts implied in law.

Quasi-contract that juridical relation resulting from lawful, voluntary, and unilateral acts by virtue of w/c the parties become bound to each other to the end that no one will be unjustly enriched or benefited at the expense of another.

*not exactly a contract because there is no meeting of the minds, there is no consent. The law considers the parties as having entered into a contract although they have not actually did so.

Principal Kinds of quasi-contracts

(1) Negotiorum Gestio voluntary management without the knowledge or consent of the latter.

(2) Solutio indebiti juridical relation which is created when something is received when there is no right to demand it and it was unduly delivered through mistake. (payment by mistake) requisites are:

a. There is no right to receive the thing delivered

b. The thing was delivered through mistake

Art. 1161 Civil obligations arising from criminal offenses shall be governed by the penal laws, subject to the provisions of article 2177, and of the pertinent provisions of Chap. 2, Preliminary Title, on Human Relations, and of the Title XVIII of this Book, regulating damages.

--- deals w/ civil liability arising from crimes or delicts

(1) rule: that every person criminally liable for an act or omission is also civilly liable

(2) in crimes which cause no material damage, there is no criminal liability to be enforced. But a person not criminally responsible may still be liable civilly. (failure to pay a debt, causing damage to anothers property w/o malicious or criminal intent or negligence.

Civil liability includes:

(1) Restitution

(2) Reparation for the damage caused

(3) Indemnification for consequential damages

Ex. X stole Ys car. If X is convicted, the court will order X: (1) return the car (or pay its value if lost/destroyed); (2) pay for any damage caused to the car; and (3)pay such other damages suffered by Y as a consequence of the crime

Art. 1162 Obligations derived from quasi-delicts shall be governed by the provisions of Chap. 2, Title XVII of this book, and by special laws.

--- treats of obligations arising from quasi-delicts/torts

Quasi-delicts act or omission by a person (tortfeasor) w/c causes damage to another in his person, property or rights giving rise to an obligation to pay for the damage done, there being fault or negligence but there is no pre-existing contractual relation bet parties.

Requisites of quasi-delict

(1) There must be an act or omission

(2) There must be fault or negligence

(3) There must be damage caused

(4) There must be a direct relation or connection of cause and effect bet the act or omission and the damage; and

(5) There is no pre-existing contractual relation bet the parties

Crime vs quasi-delict

(1) Crime = criminal or malicious intent or criminal negligence while quasi-delict = only negligence

(2) Crime = purpose is punishment, while quasi-delict = indemnification of the offended party

(3) Crime = affects public interest; quasi-delict = concerns private interest

(4) Crime = 2 liabilities: criminal and civil; quasi-delict = only civil

(5) Criminal liability cant be compromised or settled by the parties themselves; quasi-delict can be compromised

(6) Crime = guilt of the accused must be proven beyond reasonable doubt; quasi-delict = fault or negligence need only be proved by the preponderance (superior/weight) of evidence.

Art. 1163 Every person obliged to give something is also obliged to take care of it with proper diligence of a good father of a family unless the law or the stipulation of the parties requires another standard of care.

--- refers to an obligation specific or determinate thing

Specific/determinate thing particularly designated or physically segregated others of the same class

Generic/indeterminate thing refers only to a class/genus to w/c it pertains and cant be pointed out with particularity

Determinate thing identified by its individuality. The debtor cant substitute it with another although the latter is of the same kind and quality w/o the consent of the creditor.

Generic thing identified only by its specie. The debtor can give anything of the same class as long as it is of the same kind.

Duties of debtor in obligation to give a determinate thing

(1) Preserve the thing in obligations to give (real obli.) the obligor has the incidental duty to take care of the thing due w/ the diligence of a good father of a family pending delivery.

a. Diligence of a good father equated w/ ordinary care or average (a reasonable prudent) person

b. Another standard care exception: if the law or the stipulation of the parties provides for another standard of care (slight/extraordinary diligence), said law or stipulation must prevail

c. Factors to be considered diligence required necessarily depends upon the nature of the obligation & corresponds w/ the circumstances of the person, time and place. GR: the debtor is not liable of his failure to preserve the thing is not due to his fault or negligence but to fortuitous events or force majeure

Ex. S binds himself to deliver a specific horse to B on a certain date.

Pending delivery, S has the additional or accessory duty to take care of the horse w/ the diligence of a good father of a family, like feeding the horse regularly, keeping it in a safe place, etc. S must exercise that diligence w/c he would exercise over another horse belonging to him w/c he is not under obligation to deliver to B.

But S cant relieve himself from liab in case of loss by claiming that he exercised the same degree of care toward the horse as he would toward his own, if such care is less than that required by the circumstances. If the horse dies or is lost or become sick as a consequence of Ss failure to exercise proper diligence, he shall be liable to B for damages.

The accessory obligation of S to take care of the horse is demandable even if no mention thereof is made in the contract.

d. Reason for debtors obligation debtor must exercise diligence to insure that the thing to be delivered would subsist in the same condition as it was when the obligation was contracted.

(2) Deliver the fruits of the thing Art. 1164

(3) Deliver the accessions and accessories Art. 1165

(4) Deliver the thing itself

(5) Answer for damages in case of non-fulfillment or breach Art. 1170

Duties of debtor in obligation to deliver generic thing

(1) To deliver a thing w/c is of the quality intended by the parties taking into consideration the purpose of the obligation and other circumstances

(2) To be liable for damages in case of fraud, negligence or delay in the performance of his obligation or contravention of the tenor thereof.

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.

Different Kinds of Fruits

(1) Natural Fruits spontaneous products of the soil, and the young and other products of animals. (no human intervention)

(2) Industrial Fruits produced by lands of any kind through cultivation or labor.

(3) Civil Fruits derived by virtue of a juridical relation

Ex. Rents of bldg, price of leases of lands and other property, interest income

When is the creditor entitled to the fruit?

From the time the obligation to deliver arises.

When will the obligation to deliver arise?

GR: on obligation to deliver upon perfection of the contract.

(Perfection birth of the contract, meeting of the minds bet. the parties)

Exception: (1) agreement

Ex.) S sold horse to B, no date or condition stipulated for the delivery of the horse. While the horse was in possession w/ S, the horse gave to a colt. The contract was perfected today, June 15, w/o any other agreement for delivery. If the horse gave birth to a colt, June 20, apply general rule, the time the contract was perfected. B owns the colt.

If theres agreement, delivery is June 30, colt was born on June 20, S has the right over the colt.

Art. 1164 refers to the real obligation to deliver.

Real obligation obligation to give

Real right binding against the whole world.

Personal obligation obligation to do or not to do

Personal right right you can assert to an individual

***Delivery is the act that transfers ownership.