General Provisions (Obligations)

Notes from:
● De Leon, Hector S., and Hector M. De Leon. The Law on Obligations and Contracts.
Rex Book Store, 2014.
● Civil Code

Civil Code definition of obligation

Article. 1156. An obligation is a juridical necessity to give, to do or not to do.

Meaning of obligation
● “Obligatio” – tying or binding
● It is a tie or bond recognized by law by virtue of which one is bound in favor of
another to render something—and this may consist in giving a thing, doing a certain
act, or not doing a certain act.

Meaning of juridical necessity

● Debtor must comply whether he likes it or not
● If obligations are not made enforceable, then people can disregard them with
impunity
● In cases of noncompliance, the courts of justice may be called upon by the aggrieved
party to enforce its fulfillment
● Debtor may be liable for damages
● What are damages? Damages represent the sum of money given as compensation
for the injury or harm suffered by the creditor for the violation of his rights.

Nature of obligations under the Civil Code

● Civil obligations – Obligations which give to the creditor or obligee a right under the
law to enforce their performance in courts of justice. Ex. If I borrow money from a
bank, it is my civil obligation to pay it back. If I don’t pay back the money, I can be
sued in court for the performance of my obligation.
● Natural obligations – Based on equity and natural law which do not grant a right of
action to enforce their performance, but after voluntary fulfillment by the obligor, they
authorize the retention of what has been delivered or rendered by reason thereof. Ex.
When a minor between 18 and 21 years of age, who has entered into a contract
without the consent of the parent or guardian, voluntarily pays a sum of money or
delivers a fungible thing in fulfillment of the obligation, there shall be no right to
recover the same from the obligee (creditor) who has spent or consumed it in good
faith. (Article 1427)

Essential requisites of an obligation

● Passive subject (called debtor or obligor) - Person bound to fulfill the obligation.
Person who is required to give a thing, to do an act, or to not do an act.
● Active subject (called creditor or obligee) – Person entitled to demand fulfillment of
the obligation. Person to whom a promise has been made.
● Object or prestation (subject matter of the obligation) – Giving, doing or not doing
something.

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 ● Juridical tie or legal tie (efficient cause) – What binds parties. The source of
obligation.

Example: Under a loan agreement, Alice bound herself to pay Baron a loan amounting to
P100,000 and pay interest of 1% per month. The entire amount plus interest is payable in
two (2) months. Who is the passive subject? Alice. Who is the active subject? Baron. What
is the object? Money plus interest. What is the juridical tie? A contract, specifically a loan
agreement. What happens if you do not pay? Since this is a civil obligation, Alice can be
sued by Baron in court (juridical necessity).

Form of obligation
● An obligation may be oral or in writing. It can also be partly oral and partly in writing.
● As a general rule, the law does not require any form in obligations arising from
contracts for their validity or binding force.
● Obligations arising from other sources (i.e. quasi-contracts, quasi-delicts, arising from
crime) do not have any form at all.

Kinds of obligation according to subject matter

● Real obligation – Obligation to give. The subject matter is a thing. Ex. I promise to
give you a car.
● Personal obligation – Obligation to do or not do;

to sing at your wedding. [Note: If I make this promise, stop me

2. Negative personal obligation – Obligation not to do.
😄
1. Positive personal obligation – Obligation to do or render service. Ex. I promise
]

Examples:
● I will sell to you half of my land, but you cannot construct a fence.
● I will donate to you my house and lot so you can run an orphanage but
you cannot use it to conduct a business.

Sources of obligation
Article 1157. Obligations arise from:
(1) Law;
(2) Contracts;
(3) Quasi-contracts;
(4) Acts or omissions punished by law; and
(5) Quasi-delicts.
Each one is discussed below

Law
Article 1158. Obligations derived from law are not presumed. Only those expressly
determined in this Code or in special laws are demandable, and shall be regulated by the
precepts of the law which establishes them; and as to what has not been foreseen, by the
provisions of this Book.
● Obligations based on law are not presumed
● To be demandable it should be clearly stated in the law
● What are examples of obligations arising from law? Obligation to pay taxes, to pay
family support, to obey traffic rules, etc.

Contracts

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 Article 1159. Obligations arising from contracts have the force of law between the
contracting parties and should be complied with in good faith.
● Contract is a meeting of the minds
● Binding force of contracts – Force of law between parties
● Requirement of a valid contract – Must comply with law, morals, good customs,
public order and public policy
● Breach of contract – in whole or part; fails or refuses to comply with no legal reason
or justification
● We will discuss this further in the next module.

Quasi-contracts obligations
Article 1160. Obligations derived from quasi-contracts shall be subject to the provisions of
Chapter 1, Title XVII, of this Book.
● Definition of quasi-contracts: Juridical relations resulting from lawful, voluntary and
unilateral acts by virtue of which the parties become bound to each other to the end
that no one shall be unjustly enriched or benefited at the expense of another.
● Not a proper contract
● The parties did not enter into a contract BUT the law considers the parties as
having entered into a contract based on equity.

Kinds of quasi-contracts
There are two main types of quasi-contracts: Negotiorum gestio and solutio indebiti
1. Negotiorum gestio – voluntary management of property or affairs of another without
knowledge or consent of the latter.
● Example of negotiorum gestio (business management) – Your neighbor went
on vacation to Baguio. He did not ask you to look after his house. One night,
you look out the window and see your neighbor’s house is on fire! You call
911 then go next door with your fire extinguisher. You use up your fire
extinguisher. You suffered second degree burns on your hand which you had
treated at the hospital.The cost of the fire extinguisher is P5,000 and the cost
for treatment for the burn is P15,000. Can you charge your neighbor for these
costs? Yes, under the concept of negotiorum gestio, a kind of quasi-contract.

2. Solutio indebiti – If something is received when there is no right to demand it, and it
was unduly delivered through mistake, the obligation to return it arises.1 This is
delivery by mistake.
● Example of solutio indebiti- Cathy and Katie are identical twins. Ben owed
Cathy P1,000. On the due date, Ben pays Katie (wrong twin!). Can Ben still
get back the money from Katie? Yes, under the concept of solutio indebiti, a
kind of quasi-contract, Katie is legally obligated to return it to Ben.

Civil liability arising from crimes or delicts (Acts or omissions punished by law)
Article 1161. Civil obligations arising from criminal offenses shall be governed by the penal
laws, subject to the provisions of article 2177, and of the pertinent provisions of Chapter 2,
Preliminary Title, on Human Relations, and of Title XVIII of this Book, regulating damages.
● Crimes cause not only moral evil but also material damage
● A person criminally liable is also civilly liable for damages

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Article 2154 of the Civil Code.

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 ● What is civil liability? Being liable to compensate another because of an unlawful
injury to his person or property
● What is criminal liability? The liability that arises out of committing a crime which is
punished by imprisonment or payment of fines.
● Why is there civil liability if one commits a crime? For example, Juan stole Kelly’s car
which is a crime under Republic Act No. 6539. Aside from imprisonment, Juan also
needs to pay civil liabilities to Kelly which includes: returning the car or paying the
value thereof if the car is lost (restitution), paying for any damages to the car
(reparation), and compensating Kelly for deprivation of the use of the car
(indemnification).

Scope of civil liability

● Restitution
● Reparation for the damage caused
● Indemnification for consequential damages
● Example: In the example above, where Juan stole Kelly’s car.
○ Restitution – returning the car or paying the value thereof if the car is lost.
○ Reparation – pay for damages to the car
○ Indemnification – pay other damages suffered by the victim, Kelly, like paying
for additional transportation costs.

Quasi-delicts
Article 1162. Obligations derived from quasi-delicts shall be governed by the provisions of
Chapter 2, Title XVII of this Book, and by special laws
● A quasi-delict is an act or omission by a person (tortfeasor) which causes damage to
another in his person, property, or rights giving rise to an obligation to pay for the
damage done, there being fault or negligence but there is no pre-existing contractual
relation between the parties.

Requisites of quasi-delict
● There must be an act or omission;
● There must be fault or negligence;
● There must be damage caused;
● There must be a direct relation or connection of cause and effect between the act or
omission and the damage; and
● There is no pre-existing contractual relation between the parties [Note, however, that
the existence of a contract between the parties does not bar the commission of a tort
(quasi-delict). Otherwise put, liability for quasi-delict may still exist despite the
presence of contractual relations. 2]

What are quasi-delicts or torts?

Article 2176. Whoever by act or omission causes damage 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 called a quasi-delict and is
governed by the provisions of this Chapter. (1902a)
● For example, Sara was with her boyfriend Miguel in a mall when they started fighting.
Sara was so mad she threw her phone at Miguel but missed. She instead hit a

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Coca-Cola Bottlers Philippines, Inc. vs. Court of Appeals, G.R. No. 110295, October 18, 1993

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 stranger, Bea. Bea suffered head injuries and had to be treated at a hospital. Can
Bea sue Sara? Yes, based on quasi-delict.
● Note: There are Supreme Court (SC) cases where there was a pre-existing contract
and yet the SC ruled that the existence of a contract does not bar the application of a
quasi-delict.

Article 2177. Responsibility for fault or negligence under the preceding article is entirely
separate and distinct from the civil liability arising from negligence under the Penal Code.
But the plaintiff cannot recover damages twice for the same act or omission of the
defendant.(n)
..
Article 2179. When the plaintiff's own negligence was the immediate and proximate cause
of his injury, he cannot recover damages. But if his negligence was only contributory, the
immediate and proximate cause of the injury being the defendant's lack of due care, the
plaintiff may recover damages, but the courts shall mitigate the damages to be awarded.
(n)
Article 2180. The obligation imposed by article 2176 is demandable not only for one's own
acts or omissions, but also for those of persons for whom one is responsible.
The father and, in case of his death or incapacity, the mother, are responsible for the
damages caused by the minor children who live in their company.
Guardians are liable for damages caused by the minors or incapacitated persons who are
under their authority and live in their company.
The owners and managers of an establishment or enterprise are likewise responsible for
damages caused by their employees in the service of the branches in which the latter are
employed or on the occasion of their functions.
Employers shall be liable for the damages caused by their employees and household
helpers acting within the scope of their assigned tasks, even though the former are not
engaged in any business or industry.
The State is responsible in like manner when it acts through a special agent; but not when
the damage has been caused by the official to whom the task done properly pertains, in
which case what is provided in article 2176 shall be applicable.
Lastly, teachers or heads of establishments of arts and trades shall be liable for damages
caused by their pupils and students or apprentices, so long as they remain in their
custody.
The responsibility treated of in this article shall cease when the persons herein mentioned
prove that they observed all the diligence of a good father of a family to prevent damage.
(1903a)
Article 2181. Whoever pays for the damage caused by his dependents or employees may
recover from the latter what he has paid or delivered in satisfaction of the claim. (1904)
Article 2182. If the minor or insane person causing damage has no parents or guardian,
the minor or insane person shall be answerable with his own property in an action against
him where a guardian ad litem shall be appointed. (n)
Article 2183. The possessor of an animal or whoever may make use of the same is
responsible for the damage which it may cause, although it may escape or be lost. This
responsibility shall cease only in case the damage should come from force majeure or
from the fault of the person who has suffered damage. (1905)
Article 2184. In motor vehicle mishaps, the owner is solidarily liable with his driver, if the
former, who was in the vehicle, could have, by the use of the due diligence, prevented the
misfortune. It is disputably presumed that a driver was negligent, if he had been found
guilty of reckless driving or violating traffic regulations at least twice within the next

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preceding two months.
If the owner was not in the motor vehicle, the provisions of article 2180 are applicable. (n)
Article 2185. Unless there is proof to the contrary, it is presumed that a person driving a
motor vehicle has been negligent if at the time of the mishap, he was violating any traffic
regulation. (n)
Article 2186. Every owner of a motor vehicle shall file with the proper government office a
bond executed by a government-controlled corporation or office, to answer for damages to
third persons. The amount of the bond and other terms shall be fixed by the competent
public official. (n)
Article 2187. Manufacturers and processors of foodstuffs, drinks, toilet articles and similar
goods shall be liable for death or injuries caused by any noxious or harmful substances
used, although no contractual relation exists between them and the consumers. (n)
Article 2188. There is prima facie presumption of negligence on the part of the defendant
if the death or injury results from his possession of dangerous weapons or substances,
such as firearms and poison, except when the possession or use thereof is indispensable
in his occupation or business. (n)
Article 2189. Provinces, cities and municipalities shall be liable for damages for the death
of, or injuries suffered by, any person by reason of the defective condition of roads,
streets, bridges, public buildings, and other public works under their control or supervision.
(n)
Article 2190. The proprietor of a building or structure is responsible for the damages
resulting from its total or partial collapse, if it should be due to the lack of necessary
repairs. (1907)
Article 2191. Proprietors shall also be responsible for damages caused:
(1) By the explosion of machinery which has not been taken care of with due diligence,
and the inflammation of explosive substances which have not been kept in a safe and
adequate place;
(2) By excessive smoke, which may be harmful to persons or property;
(3) By the falling of trees situated at or near highways or lanes, if not caused by force
majeure;
(4) By emanations from tubes, canals, sewers or deposits of infectious matter, constructed
without precautions suitable to the place. (1908)
Article 2192. If damage referred to in the two preceding articles should be the result of
any defect in the construction mentioned in article 1723, the third person suffering
damages may proceed only against the engineer or architect or contractor in accordance
with said article, within the period therein fixed. (1909)
Article 2193. The head of a family that lives in a building or a part thereof, is responsible
for damages caused by things thrown or falling from the same. (1910)
Article 2194. The responsibility of two or more persons who are liable for quasi-delict is
solidary. (n)