Law On Obligations and Contracts: Art. 1156 New Civil Code of PH

Law on Obligations and Contracts
CHAPTER 1
GENERAL PROVISIONS
Law on Obligations – study of rules governing the NATURE and SOURCES of obligations.
Deals with basic rights and duties of a debtor and a creditor.
Law on Contracts- study of different kinds of contracts, their character, its rights and
liabilities of parties and remedies of parties to an agreement.
Art. 1156 New Civil Code of PH- An obligation is a juridical necessity to give, to do
or not to do.
These are Civil Obligations (Why is it a juridical necessity?
(KAILANGANG GAWIN) in case of non compliance the courts of justice may be
called upon to enforce its fulfillment or in default thereof economic value that it
represents.
TO DO= kinds of work or service
Obligation to take care of children ( to do)
Obligation of anyone NOT to steal (not to do)
TO GIVE= delivery of a movable/ immovable thing in order to create a real right.
Obligation to pay tuition fees (to give)
Right- a claim or title to an interest in anything whatsoever that is enforceable by law.
It is a POWER, PRIVILEGE, IMMUNITY granted under a constitution/law.
For every right enjoyed by any person, there is a corresponding obligation on the
part of another person to respect such right.
COMPLETE DEFINITION BY ARIAS RAMOS:

An obligation is a juridical relation whereby a person (creditor*nagpapautang) may
demand from another (debtor*may utang) the observance of a determinative conduct
(giving, doing, or not going), and in case of breach, may demand satisfaction from the
assets of the latter.- J.B.L. Reyes.
CIVIL ACTION- a party sues another. For protection of a right, or prevention or redress
of a wrong. (rule 1 Sec 3 1997 Rules of Civil Procedure)
CAUSE OF ACTION-act or omission by which party violates a right of another. (rule 2, sec
2)
COMPLAINT- contains written statements alleging the plaintiff’s claim or causes of action.
Starts civil action. Gives defendant a notice about claim. (rule 6, sec 1)
Complaint contains 3 essential elements of a cause of action:

LEGAL right of the plaintiff
Correlative OBLIGATION of the defendant.
The act or omission of the defendant in violation of said legal right.
PLAINTIFF- Party who brings or files a civil suit in a court of law.
DEFENDANT- A person sued in a civil proceeding and required to answer the complaint
in court.
REAL OBLIGATION- to give PERSONAL OBLIGATION- to do not to

Obligation of the debtor/obligor to give, do.
(move or not moveable) to the oblige
creditor. Positive Personal Obligation
Kailangan ng may utang na magbigay sa Obligation of obligor to obligee to perform
kinauutangan. some service.
Determinate or Specific Real Negative Personal Obligation

Obligation Obligation of obligor to obligee on acts not
Obligation to deliver a determinate specific to perform.
thing to creditor.
Indeterminate or Generic Real

Obligation
Obligation to deliver an indeterminate/
generic thing to creditor.
Determinate- physically segregated from all

others of the same class. (specifc/ custom
made)
E.g. To deliver A bracelet with Violet Gem
and J engraved on it.
Indeterminate- designated merely by its

class or genus
E.g. To deliver a Bracelet with Gemstone.
ESSENTIAL REQUISITES/ELEMENTS OF AN OBLIGATION

-Essential requisites is parts of obligation na kapag wala siya ay di maituturing na
obligation.
1. Passive Subject ( Obligor) – Is the one bound to fulfill the obligation
2. Active Subject ( Obligee) – Is entitled to demand fulfillment of the obligation
3. Object/Prestation/ Subject Matter- particular conduct of obligor (giving,doing,not
doing)
4. Juridical /Legal Tie/ Efficient Cause/ Vinculum Juris- Binds or CONNECTS
parties to the obligation.
Damage- na incur na harm Damages- Pwedeng marecover from the

defendant
Obligations Arising from LAW
When imposed by the law itself
It is a rule of conduct, just, obligatory, promulgated by legitimate authority, and of
common observance and benefit.
EG: Pay taxes (Tax Code)

Obligations of parents to family (Family Code)
Obligations arising from CONTRACTS (ART. 1305)

A contract is a meeting of minds between 2 persons whereby one binds himself, respect to
the other, to give something or to
render some service. (BILATERAL COMMODATUM. A contract, by which one of
ACT- nagkaroon ng kasunduan. the parties binds himself to return to the other
Contract of sale.) certain personal chattels which the latter
delivers to him, to be used by him, without
Obligations arising from contracts reward; loan -for use
have the force of law between the *Culpa Contractual = the negligence in the
contracting parties and should be
performance of a contract
complied with in good faith
A contract undergoes various
stages:
Negotiation/ Preparation- covers the period from the time the prospective contracting
parties indicate interest in the contract to the time the contract is concluded (perfected).
Perfection-of the contract takes place upon the concurrence of the essential elements
thereof.
Consummation- begins when the parties perform their respective undertakings under
the contract culmination in the extinguishment thereof
Obligations arising from QUASI-CONTRACTS (as if) (ART. 2142)
Is that juridical relation resulting from certain lawful, voluntary, and UNILATERAL acts by
virtue of w/c the parties become bound to eachother to the end that no one will be
unjustly enriched or Benefited at the expense of another.
Negotiorum Gestio- – This refers to the voluntary administration of the property, business
or affairs of another without his consent or authority.
Solutio Indebiti - this refers to payment by mistake of an obligation which was not due
when paid
Other Quasi-Contracts- Those support given by strangers as enumerated under article

2164 to 2175 (ARTICLE 1160 of the New Civil Code)
Obligations arising from DELICTS “ Acts or Omissions Punished by Law
A violation of the law, a WRONGFUL act or omission (to give rise for compensation).
crime or felony. Punishable by law

Delicts produce both criminal and civil liabilities. (Art 100 Revised Penal Code)
-Civil Liabilities Delicts—

1. Restitution- restitution of the thing itself must be made whenever possible, with
allowance for any deterioration, or diminution in value as determined by the court.
2. Reparation- For damage caused- The court shall determine the amount of damage,
taking into consideration the price of the thing, whenever possible, and its special
sentimental value to the injured party, and reparation shall be made accordingly.
3. Indemnification- For consequential damages. It shall include not only those caused
the injured party, but also those suffered by his family or by a third person by reason of
the crime.
Note: Art. 89. How criminal liability is totally extinguished – Criminal liability is totally
extinguished:
(1) by the death of the convict, as to the personal penalties; and as to pecuniary
penalties, liability therefore is extinguished only when the death of the offender occurs
before final judgment;
Obligations arising from QUASI-DELICTS (Negligience-kapabayaan)
Also known as “tort” or “culpa- aquiliana”
ELEMENTS OF NEGLIGENCE
1. The fault or negligence of the defendant;
2. The damage suffered or incurred by the plaintiff
3. The relation of cause and effect between 1 and 2.
KINDS OF NEGLIGIENCE:
Culpa Aquiliana- resulting from the failure to observe the required diligence which causes
damage to another person. (Civil negligience)
Culpa Contractual- This negligence in the performance of a pre-existing contract. (Civil

Neglegience)
Culpa Criminal - Criminal Negligence. This is negligence which results in the commission of
a crime.
Main Coverage
Civil Code Art 11-56-1304 Obligations
Civil Code Art. 1305-1422 Contracts
ART 1158 Obligation arising from LAW

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 established them; and as to what has not been forseen….
- “laws are not presumed” – huwag ka mag assume na may obligation ang isang tao
UNLESS expressed or specified by the law.
- “Code or special laws” – Tinutukoy ng code ay Civil code.
Art 1159 Obligations arising from Contracts

….have the FORCE OF LAW between contracting parties and should be amplified
with GOOD FAITH.
-Ang dalawang tao ay binded ssa contract. It should be complied in good faith.
Good Faith – it is intangible and abstract. Being honest/ having pure intentions.
Wala kang hidden agenda/ malice, absence of fraudulent ideas.
Art 1161 Obligations Arising from Delicts

Civil obligations arising from CRIMINAL OFFENSES shall be governed by PENAL
LAWS, subject to the provisions of Article 2177, and of the pertinent provisions of Chap 2,
Preliminary Title, on Human Relations, and of Title XVIII (18) of this book, regulating
damages.
Art. 2142 Obligations arising from Quasi-Contracts

….certain LAWFUL, VOLUNTARY, and UNILATERAL acts give rise to the juridical
relation of quasi-contracts to the end that no one shall be unjustly enriched or benefited at
the expense of another.
(Nominate Quasi-Contracts) (sila ung may pangalan)
1. Negotiorum Gestio (Art 2144-2153)
2. Solutio Indebiti (Art 2154-2163)
(Innominate Quasi-Contracts- walang pangalan)

3. Other Quasi-Contracts (Art 2164-2175)
Negotiorum Gestio – voluntarily takes charge of the

agency/management/business/property without any power from the latter. (hindi alam ng
owner)
Juridical relation does not aries in either of these instances;

1. When the property or business is not neglected/abandoned.
(Unauthorized Contract)
2. If the fact the manager has been tacitly authorized by the owner.
(Contract Agency)
Solutio Indebiti- something is received when there is no right to demand it , unduly
delivered through mistake. Thus the obligation to return it arises.
Other Quasi-Contracts-
1. When without the knowledge of the person obliged to give support, it is given by
a stranger, the latter shall have a right to claim the same from the former, unless
it appears that he gave it out of piety and without intention of being repaid.
(Good Samaritans, some ppl did not seek to be repaid)
Art. 2176-2194 Quasi-delicts
The obligation imposed by Article 2176 is demandable not only for one’s own acts
or omissions, but also for those of persons for whome one is responsible.
Art 1162 Obligations derived from quasi-delicts.
Whoever by act or omission caused damage to another, there being FAULT OR

NEGLIGIENCE, if there is no pre-existing contractual relation between the parties is called
a quasi-delict.
-Sa quasi-delicts may kapabayaan yan na technically di sinasadya.

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Law on Obligations and Contracts

COMPLETE DEFINITION BY ARIAS RAMOS:

Complaint contains 3 essential elements of a cause of action:

REAL OBLIGATION- to give PERSONAL OBLIGATION- to do not to

Determinate or Specific Real Negative Personal Obligation

Indeterminate or Generic Real

Determinate- physically segregated from all

Indeterminate- designated merely by its

ESSENTIAL REQUISITES/ELEMENTS OF AN OBLIGATION

Damage- na incur na harm Damages- Pwedeng marecover from the

EG: Pay taxes (Tax Code)

Obligations arising from CONTRACTS (ART. 1305)

Obligations arising from QUASI-CONTRACTS (as if) (ART. 2142)

Other Quasi-Contracts- Those support given by strangers as enumerated under article

Obligations arising from DELICTS “ Acts or Omissions Punished by Law

crime or felony. Punishable by law

-Civil Liabilities Delicts—

Also known as “tort” or “culpa- aquiliana”

Culpa Contractual- This negligence in the performance of a pre-existing contract. (Civil

ART 1158 Obligation arising from LAW

- “Code or special laws” – Tinutukoy ng code ay Civil code.

Art 1159 Obligations arising from Contracts

Art 1161 Obligations Arising from Delicts

Art. 2142 Obligations arising from Quasi-Contracts

(Innominate Quasi-Contracts- walang pangalan)

Negotiorum Gestio – voluntarily takes charge of the

Juridical relation does not aries in either of these instances;

Art. 2176-2194 Quasi-delicts

Art 1162 Obligations derived from quasi-delicts.

Whoever by act or omission caused damage to another, there being FAULT OR

-Sa quasi-delicts may kapabayaan yan na technically di sinasadya.

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