OBLIGATION IN GENERAL

Articles 1156
I. Kinds of Obligations
a. Moral
i. Readings: On Moral Obligations and Our Chances of Fulfilling Them -
Introduction.1
b. Natural
i. Legal Provision:
1. Definition - Republic Act No. 386, also known as the New Civil
Code (herein referred to as “NCC”), – See definition in discussions
found under Arts. 1423-1430.
ii. Cases:
1. Enforceability
a. Is 20% Christmas bonus mandatory? - Ansay v. National
Development Company, G.R. No. L- 13667 (29 April
1960)2
i. Please answer: Is the subject Christmas bonus a
natural or civil obligation?
c. Civil vs Natural obligations

Civil Natural
Civil Obligations arises from law, Based on equity and natural law
contracts, quasi- contracts, delicts
and quasi-
delicts (Art. 1557)

Civil obligations give a right of No action to compel

action in courts of justice to fulfillment or performance
compel their fulfillment or
performance (Art. 1156)

d. Questions:
i. What will happen to the Civil obligation if the action
prescribes?
ii. What will happen to the Natural obligation if the action
prescribes?

II. Overview of Civil Obligations

a. Concept, Definition, Essential requisites of an Obligation, NCC, Art. 1156
i. Meaning - Obligation, juridical necessity
ii. Real vs Personal Obligation
b. Essential requisites of an Obligation, NCC, Art. 1156
i. Active Subject (oblige or credit)
ii. Passive Subject (obligor or debtor)
iii. Object or Prestation
 1. To give, to do, or not to do
iv. Efficient Cause or vinculum juris

1. General Rule: NCC, Art. 1356

2. Cases:
a. Form requirement for contracts - Dauden-Hernaez
v. De Los Angeles, Hollywood Far East Productions, Inc.
and Valenzuela, G.R. No. L- 27010 (10 April 1969)4
i. Please answer: Is the contract entered by Marlene
Dauden-Hernaez and Hollywood Far East
Productions, Inc. required to be in writing?
3. Exceptions: NCC, Arts. 1358 and 1403(2)
a. Donation of immovable - Art. 749, NCC
b. Donation of movable - Art. 748, NCC
c. Loan contracts with interest – Art. 1956, NCC
d. Statute of frauds – Art. 1403(2), NCC
c. Cause of Action, elements
i. Elements
1. Right
2. Obligation
3. Violation
ii. When to file; Prescription
1. Written contract, NCC, Art. 1144
2. Oral Contracts, NCC, Art. 1145

OBLIGATION IN GENERAL CLASSIFICATION AND SOURCES OF OBLIGATION

Articles 1157-1162
I. Sources of Obligation, NCC, Art. 1157
a. Law - NCC, Arts. 1157(1) and 1158
i. Medical assistance, who pays? - Pelayo vs. Lauron, G.R. No. L-4089, 12
January 1909.5
1. Please answer: Who should pay for medical expenses, the
husband or the parents-in-law?
ii. Property purchased by a person for his own benefit but paid by another -
Martinez vs. Martinez, G.R. No. 858, 23 January 1903.6
1. Please answer: Who owns the vessels, Francisco (Father) or
Pedro(son)?
iii. Examples:
1. Support - Family Arts. 194 and 195, Family Code of the
Philippines7
2. Gambling - Art. 2014, NCC
b. Contracts, Art. 1159
i. Definition – Art. 1305
ii. Contracts are law between the parties - Perla Compania de Seguro vs.
CA, G.R. No. 78860 (28 May 1990)8
1. Please answer: Did Cayas fulfilled her obligations in the
insurance contract?
c. Quasi-Contracts, Art. 1160
i. Definition – Art. 2142, NCC
ii. Solutio Debiti, NCC, Art. 2154
1. Erroneous payment from 1,000 to 1,000,000 – Mellon Bank vs.
Hon Celso L. Magsino et. al.9
a. Please answer: Applying the rule on solution indebiti,
should the Javier spouses return the excess money?
2. Erroneous payment - UST Cooperative Store vs. City of manila
G.R. No. L-17133 December 31, 1965.11
a. Please answer: May UST recover the payment?
iii. Negotiorum Gestio, NCC, Art. 2144
d. Acts or omission punishable by law, Art. 1161
i. A crime produces two liabilities:
1. Criminal liability – imprisonment and/or fine
a. Covered by the Revised Penal Code
2. Civil liability – payment of damages (Art. 100, Revised Penal
Code12 and Arts. 2202, 2204-2206, 2208, 2211,
2219, 2220, and 2230 of the NCC)
a. Art. 2206, Damages for Death — Reason for Awarding
Damages - “Human life has heretofore been very cheap, in
law and the practice thereunder.” Because under the
present article, the amount of damages for death caused
by a crime or quasi-delict shall be at least three thousand
pesos xxx.
i. Civil indemnity as a civil obligation in cases of
death - People vs Honorio Tibon, G.R. No. 188320,
June 29, 2010.
1. Please answer: How much now is the
prevailing indemnity for death?
e. Quasi-Delicts, Art. 1162 (Culpa Aquiliana)
i. Definition – Art. 2176, NCC
ii. Kinds of culpa
1. Culpa Aquiliana – based on negligence
2. Culpa Criminal – based on criminal act
3. Culpa Contractual – based on contract
iii. Doctrines
1. Res ipsa loquitur - literally translates to “the thing speaks for
itself."
a. Fire in a gasoline station - Bernabe Africa, et al. v. Caltex,
et al., G.R. L-12986, Mar. 31, 196613
2. Damnum Absque Injuria – means “although there was physical
damage, there was no legal injury.”
3. Doctrine of last clear chance

a. Automobile vs Horseback-rider - Picart v. Smith,

G.R. No. L-12219, March 15, 1918.
 I. Introduction to Law
- What is Law?
In a general sense, a law is any rule of action or any system of uniformity.
Examples of law under this definition include the law of gravity and the laws of motion.
Characteristics of Law
1. It is a rule of conduct
2. It is obligatory
3. It is promulgated by legitimate authority
4. It is of common observance and benefit
- General Divisions of Law
Strict Legal Sense Non-Legal Sense
Promulgated by the State (Legislative Branch) Not promulgated by the State
Enforced by the State (Executive Branch) Not enforced by the State
Example: State Law Examples: Divine Law, Natural Law &
Physical Law

- Subjects of Law – subjects of law are generally divided into two categories:
1. Law as a rule of action – this means that the laws under this category provide for
standards that define right and wrong actions and uniformity.

Law as a Rule of
Action
Divine Law Natural Law Moral Law State Law
Law of religion & faith Defined by inner Norms of good and Promulgated rules
dictates of reason right conduct of conduct.
Source is God Source is Fairness & Varies Law as defined in
Righteousness the strict
from culture, legal
conditions sense.
and time.
Reward or Punishment in Reasonable basis for No Punishments are
life or afterlife State Laws. defined under
definite promulgated
punishment for its rules.
violation.

2. Law in the figurative sense – not a law per se but treated as such because of the
uniformity it creates among all things

Physical law – generally speaking, these are laws of physical science that affects all things, including
human beings. Though it may be perceived by the human senses, in most cases, it cannot be
altered.
a. Order or Regularity in Nature – This refers to the natural order of things in nature.
 These are laws of science which all things cannot disobey.
Example: The food chain in the wild dictates that the lion is the predator and the gazelle is the prey.
b. Law by Analogy – These are rules that create a regularity or order of
things. Example: Law of Gravity
 Necessity of Law
1. The law promotes compliance with rules
2. The law provides:
a. Justice
b. Order
c. Conflict Resolution
d. Protection of Interest
e. Control of Personal and Social Relations
3. The law requires members of society to abide by a GENERAL social order

- Substantive Law vs. Procedural Law – the distinction lies in the purpose of the law.
Substantive Law Procedural Law
Creates or defines rights and duties Prescribes the manner or procedure by
which may be private or public. which rights may be enforced.
Example: Obligations and Contracts Example: Katarungang Pambarangay,
Civil Procedure, Criminal Procedure and
Special Proceedings

- Public Law vs. Private Law – the distinction lies in the relationship governed.
Public Law Procedural Law
Governs relationship between the State Governs relationships between
and individuals.
the people
Example: Criminal Law & Constitutional Example : Obligations and Contracts &
Law Persons and Family Relations (both
under Civil Law)
- Sources of Law
1. Constitution – the Constitution is the supreme law of the land. The current one that we
have right now is the 1987 Philippine Constitution.
2. Legislation – these are the laws that have been passed by the legislature (Congress and
Senate)
3. Administrative or Executive Orders, Regulations and Rulings – These are what we
call administrative laws. Examples of this are laws implemented by the DOLE, DENR and
other similar government agencies.
4. Judicial Decisions (Jurisprudence) – The Supreme Court, as the head of the judiciary,
can hear and decide cases. The rulings to such cases become part of the interpretation
and application of the law.
5. Customs – These are habits and practices of a community which have ripened into a rule
of conduct. An example of this are the practices of indigenous communities in the
mountain provinces.
- Basic Legal Concepts
1. Parens Patriae – This is the concept that the government must protect the citizens.
2. Equal Protection Clause (Sec. 1, Art. III, 1987 Phil. Constitution) – This means that
the law applies equally to all individuals without bias.
3. Non-Impairment Clause (Sec. 10, Art. III, 1987 Phil. Constitution) – This means that
a law that changes the terms of a contract will be declared null and void.
4. Publication Requirement (Art. 2, New Civil Code) – Laws need to be published for
them to take effect. This is a necessary requirement for conclusive presumption to apply.
 5. Conclusive Presumption (Art. 3, NCC) – Ignorance of the law excuses no one from
compliance therewith.
6. Duty to Render Judgement (Art. 8, NCC) – Judges have the duty to make judgements
on cases before them.
7. Presumption of Intent (Art. 10, NCC) – it is presumed that the intention of the law-
making body was to promote justice and what is right.
8. Applicability of Custom (Art. 11 & 12, NCC) – Customs must be proven as a fact and
must not be contrary to laws, public order or public policy.
9. Applicability of Penal Laws (Art. 14, NCC) – In general, all people, including foreigners,
are covered by criminal laws in the Philippines. Therefore, if a foreigner does a crime in
the Philippines, he/she will be made liable.
10. Human Relations (Arts. 19 to 21, NCC) – Any person who causes damage to another,
either with intent or unintentionally, shall be made liable to the person to whom the
damage was caused.
11. Unjust Enrichment (Art. 22, NCC) – No person shall be unjustly enriched at the expense
of another.
- Hierarchy of Courts (Exhaustion of Remedies)
1. Barangay – in some cases, barangay procedures are a necessary requirement before going
to any court. A “Certificate to File Action” may be required for minor cases.
2. Administrative Bodies – As a rule in Philippine Administrative Law, the exhaustion of
administrative remedies requires that ALL other remedies must be used before going to
courts.
3. Metropolitan Trial Court or Metropolitan Circuit Trial Court – this is the lowest court
in the judicial system.
4. Regional Trial Court – this is the court of general jurisdiction, cases which are beyond
the scope of the MTC or MCTC are filed in the RTC.
5. Court of Appeals – this is the court where most cases from the MTC, MCTC or RTC are
sent for appeal.
6. Court of Tax Appeals – this is the court where tax cases are usually appealed after
exhaustion of administrative remedies.
7. Sandiganbayan – this is a special court for government officials with a salary grade of SG
27 or higher.
8. Supreme Court – the highest Court in the Philippines, rulings of the Supreme Court form
part of the legal system and of the laws of the land. It has the power of control over all
courts and even the study of law.
- Law in the Philippines
The law degree in the Philippines is divided into eight (8) major subjects.
1. Constitutional Law – The field of law that deals with the 1987 Philippine Constitution.
Since the constitution is the supreme law of the land, all laws must comply with the
Constitution. This is why for every subject of law, a constitutional basis is always being
given.
2. Remedial Law – The field of law that deals with the procedures in enforcements of rights.
3. Criminal Law – The field of law that defines the acts or omissions that are punishable by
law.
4. Civil Law – The field of law that defines the relations and obligations between persons.
5. Commercial Law – This is a branch of law that deals with the kinds of business
organizations that can be established and the relations it may have with other persons.
6. Taxation Law – This field of law that deals with the fiscal obligations of natural
individuals and business organizations to contribute to the national fund.
7. Labor Law – This field of law generally pertains to the relations and transactions
between employers, employees and the government agencies regulating laws on
 employment.
8. Legal Ethics – This is a field of law that dictates the rules of conduct for lawyers.
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