CHAPTER 1 : GENERAL PROVISIONS CRIMINAL LIABILITY INCLUDES: 1166. The obligation to give a determinate thing includes 1173.

The obligation to give a determinate thing includes 1173. The fault or negligence of the obligor consists in the
1156. An obligation is a juridical necessity to give, to (a) RESTITUTION – restoration of property previously taken that of delivering all its accessions and accessories, even omission of that diligence which is required by the nature of
do, or not to do. away; the thing itself shall be restored, even though it be though they may not have been mentioned. the obligation and corresponds with the circumstances of
JURIDICAL NECESSITY – juridical tie; connotes that in case of found in the possession of a third person who has acquired it ACCESSIONS – fruits of the thing or additions to or the persons, of he time and of the place… If the law or
noncompliance, there will be legal sanctions. by lawful means, saving to the latter his action against the improvements upon the principal those which are naturally contract does not state the diligence which is to be observed
- An obligation is nothing more than the duty of a person proper person who may be liable to him. or artificially attached to the thing in the performance, that which is expected if a good father
(obligor) to satisfy a specific demandable laim of another (b) REPARATION OF THE DAMAGE CAUSED – court ACCESSORIES – things included with the principal for the of a family shall be required.
person (obligee) which, if breached, is enforceable in court. determines the amount of damage: price of a thing, latter’s embellishment, better use, or completion FRAUD distinguished from NEGLIGENCE
- A contract necessarily gives rise to an obligation but sentimental value, etc. When does right to fruits arise? – from the time the There is deliberate intention to cause damage.
an obligation does not always need to have a contract. (c) INDEMNIFICATION FOR CONSEQUENTIAL DAMAGES – obligation to deliver arises ; There is no deliberate intention to cause damage.
DAMAGES – sum of money given as a compensation for the includes damages suffered by the family of the injured party - Conditional – from the moment the condition happens Liability cannot be mitigated.
harm suffered by the obligee for the violation of his right. or by a third person by reason of the crime. - With a term/period – upon the expiration of the term ; Liability may be mitigated.
KINDS OF OBLIGATION Effect of acquittal in criminal case: - Simple – from the perfection of the contract Waiver for future fraud is void.
A. From the viewpoint of “sanction” a. when acquittal is due to reasonable doubt – no civil 1167. If a person obliged to do something fails to do it, ; Waiver for future negligence may allowed in certain cases:
(a) CIVIL OBLIGATION is an obligation, if not fulfilled when it liability the same shall be executed at his cost. This same rule 1. gross – can’t be excused in advance; against public policy
becomes due and demandable, may be enforced in court b. when acquittal is due to exempting circumstances – there shall be observed if he does it in contravention of the 2. simple – may be excused in certain cases
through action; based on law. is civil liability tenor of the obligation … it may be decreed that what 1174. Except in cases expressly specified by the law, or when
(b) NATURAL OBLIGATION – a special kind of obligation c. when there is preponderance of evidence – there is civil has been poorly done be undone. it is otherwise declared by stipulation, or when the nature of
which cannot be enforced in court but which authorizes liability THREE SITUATIONS: the obligation requires the assumption of risk, no person
the retention of the voluntary payment or performance 1162. Obligations derived from quasi-delicts shall be a) Debtor’s failure to perform an obligation shall be responsible for those events which could not be
made by the debtor; based on equity and natural law. the governed by the provisions of chapter 2, title 17 of this - creditor may do the obligation, or by another, at the foreseen, or which, though foreseen, were inevitable.
sanction is the law, but only conscience had book, and by special laws. expense of the debtor; recover damages FORTUITOUS EVENT – an occurrence or happening which
originally motivated the payment. REQUISITES OF QUASI-DELICTS b) Performance was contrary to the terms agreed upon could not be foreseen or even if foreseen, is inevitable;
(c) MORAL OBLIGATION – the sanction is conscience or a. omission - order of the court to undo the same absolutely independent of human intervention; act of God.
morality, or the law of the church. b. negligence at the expense of the debtor FORCE MAJEURE - an event caused by the legitimate or
B. From the viewpoint of subject matter - c. damage cause to the plaintiff c) Performance in a poor manner illegitimate acts of persons other than the obligor; there is
(a) REAL OBLIGATION – the obligation to give d. direct relation of omission, being the cause, and - order of the court to undo the same at the human intervention.
(b) PERSONAL OBLIGATION – the obligation to the damage, being the effect expense of the debtor ACTS OF MAN - Independent of the will of the obligor but
do or not to do (e.g. the duty to paint a house, or to e. no pre-existing contractual relations between 1168. When the obligation consists in NOT DOING and not of other human will.
refrain from committing a nuisance) parties the obligor does what has been forbidden him, it shall ACTS OF GOD - Events totally independent of human being
C. From the affirmativeness and negativeness of the Fault or Negligence – consists in the omission of that also be undone at his expense. Conditions which exempt obligor from liability:
obligation - diligence which is required by the nature of the obligation 1169. Those obliged to deliver or to do something incur 1. event is independent of the will of obligor
(a) POSITIVE OR AFFIRMATIVE OBLIGATION – and corresponds with the circumstances of the person, time, in delay from the time the obligee judicially or extrajudicially 2. it must either be unforeseeable or unavoidable
the obligation to give or to do and of the place. demands from them the fulfillment of their obligation. 3. occurrence must render it impossible for the debtor
(c) NEGATIVE OBLIGATION – the obligation not BASIS OF DELICTS & QUASI-DELICTS However, the demand by the creditor shall not be to fulfill the obligation in a normal matter
to do (which naturally inludes not to give) 1. INTENT - Criminal / malicious ; Negligence necessary in order that delay may exists: 4. the obligor is free of partiipation in injury to creditor.
D. From the viewpoint of persons obliged - 2. INTEREST - Affects PUBLIC interest ; PRIVATE interest - When the law or obligation so expressly declares; REQUISITES OF FORTUITOUS EVENT:
“sanction” - 3. LIABILITY - Criminal and civil liabilities ; Civil liability - When from the nature of the contract, time us the 1. Independent of the human will (or at least of the obligor’s)
(a) UNILATERAL – where only one of the parties is bound 4. PURPOSE - Punishment ; Indemnification essence and motivating factor for its establishment; 2. Unforeseen or unavoidable
(e.g. Plato owes Socrates P1,000. Plato must pay Socrates.) 5. COMPROMISE - Can’t be compromised ; Compromisable - When demand would be useless (prestation is impossible); 3. Of such character as to render it impossible for the obligor
(d) BILATERAL – where both parties are bound 6. GUILT - Proved beyond reasonable doubt ; - In reciprocal obligations, from the moment one of to comply with his obligation in a normal manner
(e.g. In a contract of sale, the buyer is obliged to deliver) Preponderance of evidence the parties fulfills his obligation; 4. Obligor – free from any participation/aggravation of the
(b.1) reciprocal CHAPTER 2 : NATURE AND EFFECT OF OBLIGATIONS - When the debtor admits he is in default injury to the obligee (no negligence or imprudence)
(b.2) non-reciprocal – where performance by one is non 1163. Every person obliged to give something is also obliged ORDINARY DELAY – mere failure to perform an obligation at EXEPTIONS:
dependent upon performance by the other to take care of it with the proper diligence of a good father the appointed time. 1. When it is expressly stipulated that he shall be liable
ELEMENTS OF OBLIGATION of a family, unless the law or the stipulation of the parties LEGAL DELAY (DEFAULT) – tantamount to non-fulfillment of even if non-performance of the obligation is due to
a) ACTIVE SUBJECT – (Creditor / Obligee) the person who requires another standard of care. the obligation and arises after an extrajudicial or judicial fortuitous events;
is demanding the performance of the obligation; DUTIES OF DEBTOR: demand was made upon the debtor. 2. When the nature of the obligation requires the
b) PASSIVE SUBJECT – (Debtor / Obligor) the one bound to 1. Preserve or take care of the things due. KINDS OF DEFAULT: assumption of risk;
perform the prestation or to fulfill the obligation or duty; - DILIGENCE OF A GOOD FATHER – a good father does not a) MORA SOLVENDI – delay on the part of the debtor to 3. When the obligor is in delay;
c) PRESTATION – (to give, to do, or not to do) object; abandon his family, he is always ready to provide and fulfill his obligation; 4. When the obligor has promised the same thing to two or
subject matter of the obligation; conduct required to be protect his family; ordinary care which an average and REQUISITES: more persons who do not have the same interest;
observed by the debtor; reasonably prudent man would do. 1. failure of the obligor to perform obligation on 5. When the possessor is in bad faith and the thing lost
d) EFFICIENT CAUSE – the JURIDICAL TIE which binds the - ANOTHER STANDARD OF CARE – extraordinary the DATE agreed upon; or deteriorated due to fortuitous event;
parties to the obligation; source of the obligation. diligence provided in the stipulation of parties. 2. demand (j/ej) by the creditor; 6. When the obligor contributed to the loss of the thing.
e) CAUSA (causa debendi/causa obligationes) - why - FACTORS TO BE CONSIDERED – diligence depends on the 3. failure to comply with such demand 1175. Usurious transactions shall be governed by
obligation exists nature of obligation and corresponds with the circumstances EFFECTS: special laws.
PRESTATION (Object) of the person, time, and place. 1) debtor – liable for damages and interests USURY – contracting for or receiving interest in excess of the
1. TO GIVE – delivery of a thing to the creditor (in sale, ** Debtor is not liable if his failure to deliver the thing is due 2) debtor – liable for the loss due to a fortuitous event amount allowed by law for the loan or use of money, goods,
deposit, pledge, donation); to fortuitous events or force majeure… without negligence or KINDS: etc.
2. TO DO – covers all kinds of works or services fault in his part. 1) ms ex re – default in real obligations (to give) SIMPLE LOAN – one of the parties delivers to another,money
(contract for professional services); 2. Deliver the fruits of a thing 2) ms ex persona – default in personal obligations (to do) or other consumable thing upon the condition that the same
3. NOT TO DO – consists of refraining from doing some 3. Deliver the accessions/accessories b) MORA ACCIPIENDI – delay on the part of the creditor to amount of the same kind and quality shall be paid.
acts (in following rules and regulations). 4. Deliver the thing itself accept the performance of the obligation; USURY LAW – makes the usurers criminally liable if the
REQUISITES OF PRESTITUTION / OBJECT 5. Answer for damages in case of non-fulfillment or breach EFFECTS: interest charged on loans are more that the limit prescribed
1) licit (if illicit, it is void) 1164. The creditor has a right to the fruits of the thing 1. creditor – liable for damages by law.
2) possible (if impossible, it is void) from the time the obligation to deliver it arises. 2. creditor – bears the risk of loss of the thing This law is repealed – Circular No. 905 of the Central Bank
3) determinate or determinable (or else, void) However, he shall acquire no real right over it until the 3. debtor – not liable for interest from the time of has expressly removed the interest ceilings
4) pecuniary value same has been delivered to him. creditor’s delay prescribed by the USURY LAW.
INJURY – wrongful act or omission which causes loss REAL RIGHT (jus in re) – right pertaining to person over a 4. debtor – release himself from the obligation REQUISITES FOR RECOVERY OF INTEREST
or harm to another. specific thing, without a passive subject individually c) COMPENSATIO MORAE – delay of the 1. The payment of interest must be expressly stipulated.
1157. Obligation arises from – (1) law; (2) contracts; determined against whom such right may be personally obligors in reciprocal obligation. 2. It must be in writing.
(3) quasi-contracts; (4) acts or omissions punished by enforced.a right enforceable against the whole world Effect: the default of one compensates the default of 3. It must be lawful; unconscionable or inquitous
law; (5) quasi-delicts. PERSONAL RIGHT (jus ad rem) – right pertaining to a person the other; their respective liabilities shall be offset equitable. 1176. The receipt of the principal by the creditor without
(1) LAW (Obligation ex lege) – imposed by law itself; must to demand from another, as a definite passive subject, the Default / Delay in negative obligation is not possible. reservation with respect to the interest, shall give rise to the
be expressly or impliedly set forth and cannot be presumed fulfillment of a prestation to give, to do or not to do. A right (In negative obligation, only fulfillment and violation presumption that said interest has been paid.
(2) CONTRACTS (Obligation ex contractu) – arise from enforceable only against a definite person or group. are possible) The receipt of a later installment of a debt without
stipulations of the parties: meeting of the minds. Once the thing and the fruits are delivered, then he WHEN DEMAND IS NOT NECESSARILY PUT IN DELAY reservation as to prior installments, shall likewise raise
- must be complied with in good faith because it is the “law” acquires a real right over them. 1. When the obligations so provides the presumption that such installments have been paid.
between parties; neither party may unilaterally evade his Ownership is transferred by delivery which could be 2. When the law so provides These are mere presumptions.
obligation in the contract, unless: either actual or constructive. (Art. 1477) 3. When time is of the essence To be sure – write the interest and the dates covered
a) contract authorizes it The remedy of the buyer when there is no delivery 4. When demand would be useless by such payment in the receipt.
b) other party assents despite demand is to file a complaint for “SPECIFIC 5. When there is performance by a party 1177. The creditors, after having pursued the property
(3) QUASI-CONTRACTS (Obligation ex quasi-contractu) – PERFORMANCE AND DELIVERY” because he is not in reciprocal obligation in possession of the debtor to satisfy their claims, may
arise from lawful, voluntary and unilateral acts and which are yet the owner of the property before the delivery. 1170. Those who in the performance of their exercise all the rights and bring all the actions of the
enforceable to the end that no one shall be unjustly enriched � ACTUAL DELIVERY – actual delivery of a thing from the obligations are guilty of fraud, negligence, or delay, latter for the same purpose, save those which are
or benefited at the expense of another hand of the grantor to the hand of the grantee (presonally), and those who in any manner contravene the tenor inherent in his person; they may also impugn the acts
a. Negotiorum gestio - unauthorized management; or manifested by certain possessory acts executed by the thereof, are liable for damages. which the debtor may have done to defraud them.
This takes place when a person voluntarily takes grantee with the consent of the grantor (realty). FRAUD (dolo) – deliberate intentional evasion of the faithful REMEDIES AVAILABLE TO CREDITORS FOR THE
charge of another’s abandoned business or � CONSTRUCTIVE TRADITION – representative of symbolical fulfillment of an obligation; SATISFACTION OF THEIR CLAIMS:
property without the owner’s authority in essence and with intention to deliver the ownership. NEGLIGENCE (culpa or fault) – voluntary act or omission of 1. Exact fulfillment with right to damages
b. Solutio indebiti - undue payment; This takes place when FRUITS: diligence, there being no malice, which prevents the normal 2. Pursue the leviable property of the debtor.
something is received when there is no right to demand it, 1. NATURAL – spontaneous products of the soil, the fulfillment of an obligation; Exhaustion of the debtor’s properties still in his
and it was unduly delivered thru mistake young and other products of animals; DELAY (mora) - is the failure to perform an obligation on possession – writ of attachment (before judgment)
(4) DELICTS (Obligation ex maleficio or ex delicto) – arise 2. INDUSTRIAL – produced by lands of any cultivation time which failure, constitutes a breach of contract or writ of execution (for final judgment not yet
from civil liability which is the consequence of a criminal or labor; CONTRAVENTION OF TERMS OF OBLIGATION (violatio)– executed)
offense 3. CIVIL – those derived by virtue of juridical relation. violation of terms and conditions stipulated in the obligation; 3. ACCION SUBROGATORIA – an action where the
(5) QUASI-DELICTS / TORTS (Obligation ex quasi-delicto 1165. When what is to be delivered is a determinate thing, this must not be due to a fortuitous event. creditor whose claims had not been fully satisfied,
or ex quasi-maleficio) – arise from damage caused to the creditor may compel the debtor to make delivery. If the 1171. Responsibility arising from fraud is demandable may go after the debtors (3rd person) of the
another through an act or omission, there being no fault or thing is indeterminate or generic, he may ask that the in all obligations. Any waiver of an action for future defendant debtor.
negligence, but no contractual relation exists between the obligation be complied with at the expense of the debtor. If fraud is void. 4. ACCION PAULIANA – an action where the creditor
Parties. the obligor delays or has promised to deliver the same ting To allow such waiver will necessarily render the files an action in court for the RESCISSION of acts or
1158. Obligations from law are not presumed. Only to two or more persons who do not have the same interest, obligatory force of contracts illusory. contracts entered into by the debtor designed to
those (1) expressly determined in this code or (2) in he shall be responsible for any fortuitous event until he has The law does not prohibit waiver of an action for defraud the former.
special laws are demandable, and shall be regulated by effected the delivery. damages based on fraud already committed. 1178. Subject to the laws, all rights acquired in virtue
the precepts of the law which establishes them; and as DETERMINATE THING - something which is susceptible of Any deliberate deviation from the normal way of of an obligation are transmissible, if there has been no
to what has not been foreseen, by the provisions of this particular designation or specification; obligation is fulfilling the obligation may be a proper basis for stipulation to the contrary.
code. extinguished if the thing is lost due to fortuitous events. claim for damages against the guilty party. EXCEPTIONS:
Unless such obligations are EXPRESSLY provided by INDETERMINATE THING - something that has reference only INCIDENTAL FRAUD – committed in the performance of an a) Those not transmissible by their nature like
law, they are not demandable and enforceable, and to a class or genus; obligation to deliver is not so obligation already existing because of a contract. purely personal rights;
cannot be presumed to exist. extinguished by fortuitous events. CAUSAL FRAUD – employed in the execution of contract in b) Those not transmissible by provision of law;
Special laws – refer to all other laws not contained in REMEDIES FOR FAILURE OF DELIVERY (determinate thing) order to secure consent; remedy is annulment bec of 1. By the contract of agency
the Civil Code. 1. Complaint for specific performance – an action to vitiation of consent. 2. By the contract of partnership
1159. Obligations arising from contracts have the force compel the fulfillment of the obligation. 1172. Responsibility arising from negligence in the 3. By the contract of commodatum
of law between the contracting parties and should be 2. Complaint for rescission of the obligation – action to performance of every kind of obligation is also c) Those not transmissible by stipulation of parties.
complied with in good faith. rescind demandable, but such liability may be regulated by the In the case of death of the person
In the eyes of law, a void contract does not exist and 3. Complaint for damages – action to claim for courts, according to circumstances. WILL - It is the written will of the deceased person on how
no obligation will arise from it. compensation of damages suffered 1. Nature of the Obligation he/she would like his wealth to be distributed.
OBLIGATIONS ARISING FROM CONTRACTS – primarily As a general rule, “no person shall be responsible for 2. Circumstances of a Person When the deceased person has will (Testator) :
governed by the stipulations, clauses, terms and conditions those events which could not be foreseen, or which, 3. Circumstances of the Time The person who will manage the distribution is the Executor
of their agreements. though foreseen, are inevitable, except: 4. Circumstances of the Place The wealth of the deceased person is called Estate
If a contract’s prestation is unconscionable (unfair) 1. in cases expressly specified by the law Imprudence – lack of skill or precaution 50% Legitime , 50% Free Portion
or unreasonable, even if it does not violate morals, 2. when it is stipulated by the parties KINDS OF NEGLIGENCE The wealth inherited by the family is called Legitime
law, etc., it may not be enforced totally. 3. when the nature of the obligation requires 1. Contractual Negligence (culpa contractual) - negligence in The people who manages the free portion is Administrator
1160. Obligations derived from quasi-contracts shall be assumption of risk contract resulting in breach. When the deceased person has no will (Decedent) :
subject to the provisions of chapter 1, title 17 of this book. An indeterminate thing cannot be object of 2. Civil Negligence (culpa aquiliana) - negligence by itself is The people who will distribute the estate is Administrator
1161. Civil obligations arising from criminal offenses destruction by a fortuitous event because genus the source of the obligation. 100% Legitime
shall be governed by the penal laws, subject to the never perishes. 3. Criminal Negligence (culpa criminal) - negligence resulting
provisions of Article 2177, in the commision of crime.