OBLIGATIONS AND CONTRACTS

PROF: ATTY. QUINTIN PREPARED BY: WSC

OBLIGATION
- It is a juridical necessity to give, to do or not to do. (Art. 1156)
JURIDICAL NECESSSITY
- In case of noncompliance, the courts of justice may be called upon by the
aggrieved party to enforce its fulfilment or, in default thereof, the economic
value that it represents.
CLASSIFICATION OF OBLIGATIONS (Art. 1423)
1. Civil Obligation
Obligation which if not fulfilled when it becomes due and demandable may
be enforced by court through an action.
2. Natural Obligation
Obligation which cannot be enforce by court action but which are binding
on the party who makes them, in conscience and according to equity and
natural justice.
i.e. if prescription period lapses, the voluntary payment of the debtor and
retention of payment by the creditor.
3. Moral Obligation
Duties of conscience completely outside of the field of law.
ESSENTIAL REQUISITES OF OBLIGATION
1. Active Subject
Who has the power to demand the prestation, known as the creditor or
oblige
2. Passive Subject
Who is bound to perform the prestation, known as the debtor or obligor
3. Prestation
The subject matter of the obligation
KINDS OF PRESTATION
1.) Real Obligation (Obligation to give)
-the subject matter is a thing which the obligor must deliver to the obligee.
2.) Personal Obligation (Obligation to do or not to do)
-the subject matter is an act to be done or not to be done
Kinds of Personal Obligation:
a.) Positive Personal Obligation Obligation to do or not to do
(Art. 1167)
b.) Negative Personal Obligation Obligation not to do/not to give
(Art. 1168)

4. Efficient cause/ Juridical tie

The reason why the obligation exists.
a.) By law: such as relation of husband and wife giving rise to the obligation
to support
b.) By bilateral acts: such as contracts giving rise to the obligations
stipulated there in
c.) By unilateral acts: such as crimes and quasi-delicts
SOURCES OF OBLIGATIONS (EFFICIENT CAUSES): ART. 1157
1. Law
The law cannot exist as a source of obligations, unless the acts to which its
principles may be applied exist.
But once those acts or facts exists, the obligations arising therefrom by
virtue of express provisions of the law are entirely independent of the
agreement of the parties.
Such obligations and their correlative rights are governed by the law which
by which they are created.
2. Contract
Meeting of minds between two parties whereby one is bound to do, to give,
not to do or not to give.
Created by mutual consents, without such no contract exists.
The terms of the contract should not be contrary to law, morals, good
customs, public policy, or public order.
If the contract does not violate any of the aforementioned limitations, it
should be given effect, notwithstanding the absence of any legal provision
at the time it was entered into which governs it.
3. Quasi-Contracts
Is a juridical relation which arises from certain lawful, voluntary, and
unilateral acts, to the end that no one may be unjustly enriched or
benefited at the expense of another.
Kinds of Quasi-Contract:
a. Negotiorum gestio (unauthorized management)
-Voluntary management of the property or affairs of another without the
knowledge or consent of the latter. (Art. 2144)
o The gestor must continue managing the business or property until
he is fired or officially appointed by the owner of property.
o The gestor is not entitled to use of the property personally but
entitled for reimbursement.

OBLIGATIONS AND CONTRACTS

PROF: ATTY. QUINTIN PREPARED BY: WSC
b. Solutio indebiti
-When something is received where there is no right to demand it, and
it was unduly delivered thru mistake. The recipient has the duty to
return it.
4. Delicts
When they arise from civil liability which is the consequence of a criminal offense.
(Art. 1161)
o Criminal ( Public Aspect) Civil ( Private Aspect)
o Twin liability except for victimless crime
How civil liability is enforced:
a. Restitution: restoration of the thing itself
b. Reparation: reparation of the amount of damage , considering the price
and sentimental value
c. Indemnification: giving compensation for loss of for consequential
damages caused to the injured party and his family or given a third
person.
Criminal Liability
Civil Liability
1. RPC Conviction
Yes
Yes, through reparation,
restitution or indemnification
2. Acquittal
a. Reasonable doubt
No
Yes, through preponderance of
evidence
b. Innocence/NonNo
No
authorship
c. Justifying Circumstance
No
No, except avoidance of grater
evil (Art. 11 (4))
d. Exempting
No
Yes, through guardian or person
Circumstance
exercising parental authority
3. Dismissal due to violation
No
Yes, either dependent or
of rights i.e. double
independent civil action
jeopardy, violation of
speedy trial
5.Quasi-Delicts
Art. 2176, whoever by act or omission causes damages to another, there being fault
or negligence, is obliged to pay for the damage done. Such fault or negligence, if
there is no pre-existing contractual relation between the parties is quasi-delict.

Damnum absque injuris (loss w/o injury): i.e. self-inflicted damages such as
when plaintiff cannot attribute damages to anyone except himself because
the injury is self-inflicted.
Negligence- is the failure to observe for the protection of the interests of
another person, that degree of care. Precaution and vigilance which the
circumstances justly demand, whereby such other person suffers injury.
Requisites of Liability for Quasi-delict:
a. That there exists a wrongful act or omission imputable to the
defendant by reason of his fault or negligence.
b. That there exists a damage or injury, which must be proved by the
person claiming recovery
c. That the negligence or fruit is the proximate cause of the damage or
injury.