CHAPTER 1 ART.

1157
GENERAL PROVISIONS “Obligations arise from:
Civil Code of the Philippines (1) Law;
(2) Contracts;
These articles explain what an obligation is and
(3) Quasi-contracts;
where it comes from.
(4) Acts or omissions punished by law; and
If you master this chapter, you understand the
(5) Quasi-delicts.”
foundation of all obligations.
This article answers one question.
ART. 1156
“An obligation is a juridical necessity to give, to Where do obligations come from?
do or not to do.”
Only five sources. No more.
Simple explanation
1. Law
An obligation is a legal duty. The law itself creates the duty.
If you do not comply, the law can force you to
Example 1
comply or pay damages.
Parents must support their children.
There are only three possible duties: Even without a contract, the Family Code
imposes this duty.
• To give
• To do Example 2
• Not to do You must pay taxes.
You did not sign a contract with the
To give means to deliver something.
government.
To do means to perform a service.
The obligation exists because of law.
Not to do means to stop or avoid an act.
2. Contracts
The words juridical necessity mean the court
A meeting of minds between parties.
can compel you.
Example 1
Example 1, To give
You sign a lease agreement.
You borrow 50,000 pesos from your friend.
You must pay rent because you agreed to it.
You have the duty to give back 50,000 pesos.
If you refuse, your friend can sue you. Example 2
You buy a phone on installment.
Example 2, To do
You must pay because of the contract.
You agree to repair someone’s roof for 20,000
pesos. 3. Quasi-contracts
You must perform the repair. There is no agreement, but the law
If you abandon the work without reason, you prevents unjust enrichment.
are liable.
Example 1
Example 3, Not to do You accidentally receive 10,000 pesos in your
You sign a contract not to open a competing bank account.
store within one kilometer. You must return it.
If you open one anyway, you violate an There is no contract, but the law requires
obligation not to do. fairness.
Example 2 The Family Code clearly provides this.
You mistakenly pay your neighbor’s electric bill. That obligation is demandable because the law
Your neighbor must reimburse you. says so.

4. Acts or omissions punished by law This article protects people from imaginary legal
These are crimes. duties.

Example 1 ART. 1159

Example 2 Meaning
Someone damages your car during a robbery.
A contract is binding like law between the
He must pay civil damages.
parties.
5. Quasi-delicts
Good faith means honesty and fairness.
Fault or negligence that causes damage,
but no crime and no contract. If you sign it, you must follow it.
Example 1 Example 1
A driver hits a pedestrian because he was You sign a one year lease.
texting. After three months you simply leave without
The driver must pay damages. legal reason.
You may be liable for unpaid rent.
Example 2
A store owner fails to fix a broken floor tile. Example 2
A customer slips and gets injured. You agree to deliver 1,000 hollow blocks.
The owner must compensate. You deliberately deliver substandard blocks.
That violates good faith.
ART. 1158
“Obligations derived from law are not This article supports the principle of pacta sunt
presumed. Only those expressly determined in servanda.
this Code or in special laws are demandable…” Agreements must be respected.
Key idea ART. 1160
“Obligations derived from quasi-contracts shall
You cannot say you have a legal obligation
be subject to the provisions of Chapter 1, Title
unless a law clearly says so.
XVII of this Book.”
Courts will not invent legal duties.
This article points you to detailed rules on quasi-
Example 1 contracts.
You help a stranger carry groceries.
The most common examples are:
Later you demand payment.
There is no law requiring payment. • Solutio indebiti, payment by mistake
No legal obligation exists. • Negotiorum gestio, managing another’s
business without authority
Example 2
A child demands support from a parent.
Example 1, Solutio indebiti There is no contract.
You transfer money to the wrong GCash There is no crime.
number. But there is fault.
The receiver must return it.
This is based on Article 2176.
Example 2, Negotiorum gestio
Example 1
Your neighbor is abroad.
A bus company driver carelessly hits a parked
A typhoon damages his roof.
car.
You pay for urgent repairs to prevent bigger loss.
The company must pay for repairs.
He must reimburse you.
Example 2
There is no agreement, but the law creates
A factory fails to maintain safety equipment.
fairness.
An explosion injures nearby residents.
ART. 1161 The factory must compensate.
“Civil obligations arising from criminal offenses
Key difference from crime
shall be governed by the penal laws…”
Crime requires criminal intent or violation of
Meaning
penal law.
If someone commits a crime, there is criminal Quasi-delict focuses on negligence.
liability and civil liability.
Big Picture Summary
Criminal liability means imprisonment or fine.
An obligation is a legal duty to give, to do, or not
Civil liability means paying damages.
to do.
Example 1 It comes only from five sources.
A person commits theft. Law. Contracts. Quasi-contracts. Crimes. Quasi-
He may go to jail. delicts.
He must also return the stolen item or pay its
If you analyze any problem in Obligations and
value.
Contracts, ask:
Example 2
What is the source of the obligation?
A person commits physical injuries.
What is the prestation?
Aside from criminal penalty, he must pay
Was there breach?
medical expenses and damages.
What is the remedy?
Even if the accused is acquitted in some cases,
civil liability may still exist if proven by
preponderance of evidence.

ART. 1162
“Obligations derived from quasi-delicts shall be
governed by the provisions of Chapter 2, Title
XVII of this Book…”

Quasi-delict means negligence that causes