Chapter 1 

STUDY GUIDE 

I. Definitions
Define or give the meaning of the following:
1. Obligation
- Obligation is the moral or legal duty that requires an individual to perform, as
well as the potential penalties for the failure to perform. An obligation is also a
duty to do what is imposed by a contract, promise, or law. In the most general
sense, duty is a synonym of obligation. An obligation also refers to the tie that
binds a party to complete a task, perform an action, or pay a required amount of
money in accordance with the customs and laws of the country in which the
agreement has been made.
2. Quasi-Contract
- A quasi contract is a retroactive arrangement between two parties who have no
previous obligations to one another. It is created by a judge to correct a
circumstance in which one party acquires something at the expense of the other.
The contract aims to prevent one party from unfairly benefiting from the situation
at the other party's expense.
3. Compliance in good faith
- Compliance in good faith has been defined as honesty in a person’s conduct
during the agreement. The obligation to perform in good faith exists even in
contracts that expressly allow either party to terminate the contract for any reason.
“Fair dealing” usually requires more than just honesty. It generally requires that a
party cannot act contrary to the “spirit” of the contract, even if you give the
opposing party notice that you intend to do so.
4. Wrong
- In law, a wrong can be a legal injury, which is any damage resulting from a
violation of a legal right. A legal wrong can also imply the state of being contrary
to the principles of justice or law. It means that something is contrary to
conscience or morality and results in treating others unjustly.
 5. Solutio indebiti
- Solutio indebiti is the juridical relation which is created when something is
received when there is no right to demand it and it was unduly delivered through
mistake. This happens when something is delivered to a person by mistake and he
has no right to receive it. Therefore, he has the duty to return it.
II. Discussions
1. What are the essential requisites of an obligation? Give an example to illustrate them.
- There are four essential requisites of an obligation. A passive subject, it is a
person bound to the fulfillment of the obligation; he who has a duty. An active
subject, the person entitled to demand the fulfillment of the obligation; he who
has a right. Object or Prestation is the conduct required to be observed by
the debtor. A juridical or legal tie, it binds or connects the parties to the
obligation.
- A and B had an agreement that A will give a new phone to B. Here A is the
passive subject, B is the active subject, the giving of the new phone is the object
or prestation, and the agreement or contract is the juridical tie. 
2. Why are obligations under the Civil Code a judicial necessity? Explain.
- Obligation is a juridical necessity because in case of non-compliance, the courts
of justice may be called upon by the aggrieved party to enforce its fulfillment or
in default thereof, the economic value that it represents. Also, according to Article
1156, an obligation is a juridical necessity to give, to do or not to do. Obligation is
the requirement to do what is imposed by law, promise, or contract. Obligation is
synonymous with duty. It is a tie which binds us to pay or to do something
agreeably to the laws and customs of the country.
3. What are the elements or requisites in order that a person may acquire a right of
action in court against another to enforce the performance of the latter’s obligation?
- (1) A right in favor of the plaintiff by whatever means and under whatever law it
arises or is created; (2) An obligation on the part of the named defendant to
respect or not to violate such right; and (3) An act or omission on the part of such
defendant in violation of the right of the plaintiff or constituting a breach of the
 obligation of the defendant to the plaintiff for which the latter may maintain an
action for recovery of damages or other appropriate relief.
4. May a person incur obligations even without entering into any contract or voluntary
agreement? Explain.
- Yes, because obligations do not only arise from contracts. They can be imposed
by law, arise from quasi-contracts, from crimes or acts or omissions punished by
law and from quasi-delicts or torts.
III. Problems
Explain or state briefly the rule or reason for your answers.
1. X saw at about one (1:00 p.m.) in the afternoon a child alone in a shopping mall. The
child who strayed from Y, his mother, was in tears and appeared very hungry. Out of
pity, X took him to a restaurant to eat for which he spent P150. Y did not give her
consent to the good deed of X. Furthermore, they were on their way home before the
child got lost. Is X entitled to be reimbursed by Y for the amount of P150?
- Yes, Y is liable to X even if she did not give her consent. X fed Y’s child and
incurred expenses, and this should be reimbursed by X to prevent anyone being
unjustly enriched or benefited at the expense of other.
2. While the car of X was parked by the roadside, it was bumped at the rear by a jeep
belonging to Y. Only car of X suffered damage. Under the circumstances, does it
follow that Y is liable to X for the damage?
- Yes, because even if there is no pre-existing contractual relation between them,
X’s car was damaged due to the negligence of Y. If Y did not bump X’s car, X’s
car would not have been damaged. Thus, Y is liable to X for the damages.
3. In the same problem, has X the right to ask indemnity from R, employer of X, on the
ground that when the accident occurred X was then on his way to transact business
with a client of R?
- X does not have a right to ask for indemnity from R because there is no law that
requires.
4. D (debtor) borrowed P10,000 from C (creditor). On the due date of the loan, D could
not pay C because he lost to a robber the P10,000 intended for C. In addition, he
suffered financial reverses, and he was short of cash even for his current family’s
needs. Is D legally justified to refuse to pay C?
- No, because when D loaned from C, he entered in voluntary agreement and D was
willing and therefore contract is valid. Thus, D should comply with their
agreement in good faith and does not have a legal justification to refuse payment
to C.