Article 1156: An obligation is a juridical necessity to give, to do or not to do.

 In every obligation to give, to do or not to do, there is always a concomitant right to demand
from someone to give, to do or not to do.
 The Civil Code was enacted on August 30, 1950.
 Complete definition of an obligation, Arias Ramos – A juridical relation whereby the creditor
may demand from the debtor the observance of a certain conduct known as the prestation (to
give, to do or not to do) and in case of breach (violation, non-observance/non-fulfillment of an
obligation) by the debtor, the creditor may obtain satisfaction from the assets of the latter.
 In an obligation, there can only be two parties, the active subject, and the passive subject.
 When we speak of persons, who can be a party? Natural and Artificial/Juridical Persons.
 Examples of juridical persons – corporations, cooperatives, partnership
 Requisites of an obligation
o passive subject (debtor or obligor) – the one to perform the prestation
personal
elements
o active subject (creditor or obligee) – the one entitled to demand the prestation
o object or prestation (subject matter of the obligation) – only to give, to do or not to do;
objective
element speaks about the detail object to be performed or to be given
juridical o juridical or legal tie (efficient cause) – reason for the obligation
 Requisites of Prestation – absence of any of the requisites will make the obligation void or will
element

invalidate the obligation

o must be legal
o must be physically possible
o must be determinate or determinable
o susceptible of economic interest – measurable, not necessarily by money but is
quantifiable somehow; it has value
 Should you already know the identity of the person before an obligation? You are not required
to know the identity of the person at the time when the obligation arises, but what is required is
that it must be ascertained that the other party is existing.
 void – as if it did not arise; not extinguishment because there is nothing to extinguish in the first
place

Article 1157: Obligations arise from: (1) Law; (2) Contracts; (3) Quasi-contracts; (4) Acts or omissions
punished by law; and (5) Quasi-delicts.

 Law – imposed by the law itself

 Contracts – arise from stipulation of the parties
 Quasi-contracts – unilateral acts which are enforceable to the end that no one shall be unjustly
enriched or benefited at the expense of another (Art. 2142)
o Negotiorum gestio – voluntary management of the property or affairs of another
without the knowledge or consent of the latter
o Solutio indebiti – no right to demand it but unduly delivered through mistake
 Delicts – criminal acts punishable by law; civil liability
o Restitution – restore
o Reparation for the damage caused – repair
o Indemnification for consequential damages – compensation
 Quasi-delicts or torts – arise from act of negligence
 There are no other sources of obligation, other than the five. Classified into two: Law and
Contracts.
 Can an obligation arise from two of the sources? No.

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 provisions of this Book.

 Special laws – laws which are enacted which focuses only on specific matters, example the
Family Code of the Philippines.
 Civil Code – general law which covers diverse relations of parties, examples of which are wills
and successions, donation, partnership, and other relations

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

 If the contract that was entered into by the parties complied with the requisites, the prestation
is valid, provided the contract is not contrary to law, morals, good customs, public order and/or
public policy.

Article 1160: Obligations derived from quasi-contracts shall be subject to the provisions of Chapter 1,
Title XVII of this Book.

 Quasi-contracts is the juridical relation resulting from lawful, voluntary and unilateral acts for
the purpose of providing compensation to the end that no one shall be unjustly enriched at the
expense of another.
 Other example of quasi-contracts is support from a third party. They should be compensated,
and their support should be reimbursed.

Article 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 Chapter 2, Preliminary
Title, on Human Relations, and of Title XVIII of this Book, regulating damages.

 Research Article 2176 to 2194

Article 1162: Obligations derived from quasi-delicts shall be governed by the provisions of Chapter 2,
Title XVII of this Book, and by special laws.

 Quasi-delicts, Culpa aquiliana or torts – must be differentiated from culpa contractual

 In culpa aquiliana, this is a source of damages, in case of breach of contract you can ask for
damages; in culpa contractual, this is a source of obligation.
 However, by act of omission causes damage to another there being fault or negligence obliged
to pay for the damage done.

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

 Duty to preserve it with the diligence of a good father of a family – ordinary care
 The kind of care that you would give to your own property.
 Can the party stipulate lower than the ordinary standard of care? No, because it is against the
public policy and there will be nothing to preserve anymore. It can render the obligation futile.
 Can it be higher? Yes, that’s what you call extraordinary diligence. It can either be stipulated by
the parties or required by law.
 Example of extraordinary diligence required by law: with respect to public transport; with
respect to banks (public funds)
 When does your obligation to preserve the thing commence? When the obligation is perfected,
or if you already have the thing to preserve. The obligation to preserve is only with respect to
prestations to give, it does not include prestations to do or not to do. So, the duty to preserve is
only limited to prestations to give. It is also a rule that the obligation to preserve only starts at
the perfection of the contract.
 When does a contract made perfect? First, you have to determinate what kind of contract are
you entering:
o Consensual contracts – from the time there is consent from the contracting parties;
when two minds meet
o Real contracts – from the time of delivery
o Formal/Solemn contracts – from the time of the execution of a document prescribed by
law
 It is for the benefit of the creditor that the debtor preserves a thing.
 Can the creditor waive the obligation? No, because it is against public policy and it will render
the obligation futile.
 Kinds of Things
o Specific/determinate things – individualized, particularized, and segregated
o Generic/indeterminate things – class or genus
 The duty to preserve is only applicable to determinate things because if it is a generic object,
how will you able to know which to preserve?
 You can always substitute a generic object, while in specific object, you should replace the item
and pay for damages
 Delimited generic object – limited to a group of generic objects

Article 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.
 Kinds of Fruits
o Natural fruits – spontaneous products of the soil, without human intervention
o Industrial fruits – there’s human intervention through cultivation
o Civil fruits – interest, rent, annuities
 Real right is a power which the law gives to a person over a specific thing but without a definite
passive subject against who it may be enforced. It can be enforced against the whole world like
ownership to real properties. “I am the owner of this land.”
 Personal right is the right or power to demand from another the fulfillment of the latter’s
obligation.
 You don’t have real right over the fruit until it has been delivered, however you have a personal
right over the fruits because you can demand delivery of it.
 Delivery of fruits, does it cover generic objects? It does not apply to generic objects for you do
not know which fruit to deliver unless it has been specified.
 Can delivery of the fruits done without stipulation? Yes, because it is in the law. The creditor is
entitled to deliver the fruits even without stipulation.
 Can the parties waive the delivery of the fruits? Yes, the creditor (only) can waive the delivery of
the fruits and instead just for the delivery of the principal thing. It does not violate public policy
because principal obligation can still be performed.
 Delivery of the fruits is an accessory obligation, and accessory obligations can be waived.
 Kinds of obligation (and when do they arise)
o Pure – immediately
o Conditional – a condition is a future uncertain event while term/period is a future and
certain event
 Suspensive condition (condition precedent/antecedent – after the fulfillment of
obligation will give rise to a condition
 Resolutory condition (condition subsequent) – the happening of which
extinguishes the obligation
o Obligation subject of a period
 Suspensive period – there is a certain date; on the arrival of the period
 Resolutory period – date is after the obligation
 When does an obligation to deliver arise? See above.

Article 1165: When what is to be delivered is a determinate thing, the creditor, in addition to the right
granted him by Article 1170, may compel the debtor to make the delivery. damages

If the thing is indeterminate or generic, he may ask that the obligation be complied with at the
expense of the debtor. reimbursement

If the obligor delays, or has promised to deliver the same thing to two or more persons who do not
have the same interest, he shall be responsible for fortuitous event until he has effected the delivery.
 What is Article 1170? “If you will not deliver to me what is due and demandable, what is
rightfully mine, then I can claim for damages. In case of fraud, negligence, delay, or
contravention of the tenor thereof, I can ask for damages” – first paragraph of 1165, for specific
thing.
 Conversion of a specific object to a monetary obligation. So instead of delivery the object, just
pay for damages (for specific thing).
 For generic thing, you can get the object through substitution. And you can also get
reimbursement for the expenses you incurred for the substitution.

Article 1166: The obligation to give a determinate thing includes that of delivering all its accessions
and accessories, even though they may not have been mentioned.

 Accession are fruits of a thing or additions to or improvements upon a thing (the principal)
o Artificial accession – building on a land; man-made
o Natural accession – trees on land; alluvion or soil deposits, added to land
 Accessories are things joined to or included with the principal thing for the latter’s
embellishment, better use, or completion; phone chargers
 They must be delivered even if not agreed upon.
 Can they be dispensed with? Yes, they can be removed.
 If it is a generic thing, you are not required to deliver the fruits, accessions and accessories
 Articles 1163, 1164, and 1166, only apply to deliver a specific thing.

Article 1167: If a person obliged to do something fails to do it, the same shall be executed at his cost.

This same rule shall be observed if he does it in contravention of the tenor of the obligation.
Furthermore, it may be decreed that what has been poorly done be undone.

 Starting from this, it pertains to the obligation to do.

 If he fails to do it, it can be done by other persons, and the cost shall be shouldered by the
debtor. But it must not be a very personal.
 If he did something he should not do, it should be undone by him or a third person.
 This 1167, this to do, must not be a very personal act, because if it is a very personal act, that no
other person can do it except the debtor, the remedy of the creditor is merely damages.

Article 1168: When the obligation consists in not doing, and the obligor does what has been forbidden
him, it shall also be undone at his expense.

 Obligation not to do
 Exceptions provided that it can be undone at his expense provided that it is legal, possible, and
must not prejudice the rights of the third person
o Legally possible – example, “I promise not to marry within three months” – can’t be
undone because there is a third person involved
o Impossible – you smoked, you can’t undo it
Article 1169: Those obliged to deliver or to do something incur in delay from the time the obligee
judicially or extrajudicially demands from them the fulfillment of their obligation.

However, the demand by the creditor shall not be necessary in order that delay may exist:

(1) When the obligation or the law expressly so declares; or

(2) When from the nature and the circumstances of the obligation it appears that the designation of
the time when the thing is to be delivered or the service is to be rendered was a controlling motive for
the establishment of the contract; or

(3) When demand would be useless, as when the obligor has rendered it beyond his power to
perform.

In reciprocal obligations, neither party incurs in delay if the other does not comply or is not ready to
comply in a proper manner with what is incumbent upon him. From the moment one of the parties
fulfills his obligation, delay by the other begins.

 General rule, there is no demand, there is no delay.

 There is no requirement for the government to demand for you to pay taxes or payment to
juridical persons.
 Controlling motive = events like wedding; time is of essence
 When the other performed his part of the obligation, delay on the other begins. The demand is
in the form of the performance of the other party’s obligation.
 Kinds of delay or default
o Mora solviendi – delay on the part of the debtor to fulfill his obligation
o Mora accipiendi – delay on the part of the creditor to accept the performance of the
obligation
o Compensatio morae – delay of the obligors in reciprocal obligations

Article 1170: Those who in the performance of their obligations are guilty of fraud, negligence, or
delay and those who in any manner contravene the tenor thereof, are liable for damages.

 Causal fraud (dolo causante) – vitiated consent plus damages or specific performance plus
damages; annulment is allowed; damages is also fine
 Incidental fraud (dolo incidente) – remedy annulment is not provided; it’s either specific
performance plus damages or damages only

Article 1171: Responsibility arising from fraud is demandable in all obligations. Any waiver of an
action for future fraud is void.

 Anything related to fraud, the debtor is liable.

 Responsibility arising from fraud can arise anytime.
 Waiver for future fraud is void; waiver for past fraud is valid.
Article 1172: Responsibility arising from negligence in the performance of every kind of obligation is
also demandable, but such liability may be regulated by the courts, according to the circumstances.

 In case of negligence, the debtor can still be liable.

 There can be a waiver for future negligence, because negligence is not intentional.

Article 1173: The fault or negligence of the obligor consists in the omission of that diligence which is
required by the nature of the obligation and corresponds with the circumstances of the person, of the
time and of the place. When negligence shows bad faith, the provisions of articles 1171 and 2201,
paragraph 2, shall apply.

If the law or contract does not state the diligence which is to be observed in the performance, that
which is expected of a good father of a family shall be required.

 Factors to be considered
o Nature of the obligation
o Circumstances of the person
o Circumstances of time
o Circumstances of the place
 The test is if you will put a prudent, diligent man under the circumstances, wherein the
negligent man is present, would the prudent man, would he have acted diligently?

Article 1174: Except in cases expressly specified by the law, or when it is otherwise declared by
stipulation, or when the nature of the obligation requires the assumption of risk, no person shall
be responsible for those events which could not be foreseen, or which though foreseen, were
inevitable.

 Fortuitous event is any event which cannot be foreseen, or which, through foreseen, is
inevitable.
 Requisites/Requirements for a fortuitous event to affect an obligation, because not all
fortuitous events affect an obligation.
o If it affects the normal fulfillment of the obligation by the debtor.
o It must be independent of the human will or at least of the debtor’s will.
o It must be unforeseen, but although foreseen, it is inevitable.
 General rule: The obligation is extinguished, and the debtor is not liable.
 Exceptions
o Default – legal delay (Art. 1165)
o Promised the same thing to two or more persons who do not have the same
interest (Art. 1165)
o Expressly specified by law
o Stipulation of the parties
o Nature of the obligation requires assumption of risk
o It is a generic thing
o Arising from crime
o Concurring negligence