OBLIGATIONS AND CONTRACTS TITLE 1 - OBLIGATION Art. 1156. An obligation is a juridical necessity to give, to do or not to do. (n) CHAPTER 1. GENERAL PROVISIONS See Arts. 1156 - 1162 ELEMENTS OF AN OBLIGATION: 1. Active subject (obligee/creditor): one in whose favor the obligation is constituted 2. Passive subject (obligor/debtor): one who has the duty of giving, doing or not doing 3. Object: prestation; the conduct which has to be observed by the debtor/obligor REQUISITES 1. it must be licit (otherwise it is void) 2. it must be possible, physically and juridically (otherwise it is void) 3. it must be determinate or determinable (otherwise it is void) 4. it must have pecuniary value a. Vinculum Juris: juridical/legal tie; binds the parties to the obligation b. Causa (causa debendi/causa obligationes): why obligation exists SOURCES OF OBLIGATION Art. 1157. Obligations arise from: (1) Law; (2) Contracts; (3) Quasi-contracts; (4) Acts or omissions punished by law; and (5) Quasi-delicts. (1089a) LAW (OBLIGATION EX LEGE) Must be expressly or impliedly set forth and cannot be presumed CONTRACT (OBLIGATION EX CONTRACTU) Must be complied with in good faith it is the law between parties neither party may unilaterally evade his obligation in the contract, unless: a. Contract authorizes it b. Other party assents Parties may freely enter into any stipulations provided they are not contrary to law, morals, good customs, public order or public policy