ACT180 Module 1

LAW ON OBLIGATIONS AND CONTRACTS
(Civil Code of the Philippines,

Articles 1156 – 1430)
MODULE 1
(Art. 1156 – 1178)
OBLIGATION, CONCEPT
An obligation is a juridical necessity to give, to do, or not to do (Art.

1156, Civil Code of the Philippines). Juridical Necessity means that the court
may be asked to order the performance of an obligation if the debtor refuses to
perform it. A civil obligation is enforceable by court action, unlike natural
obligations.
REQUISITES / ELEMENTS OF AN OBLIGATION:
1. Passive Subject (Debtor/Obligor) – the person who is bound to the

fulfillment of the obligation; he who has a duty;
2. Active subject (Creditor/Obligee) – the person who is entitled to
demand the fulfillment of the obligation; he who has a right;
3. Object or Prestation (Subject matter of the obligation) – the conduct
required to be observed by the debtor. It may consist in giving, doing,
or not doing.
4. Juridical or Legal Tie (Efficient cause) – that which binds or connects
the parties to the obligation. It is the source of the obligation.
KINDS OF OBLIGATION ACCORDING TO THE SUBJECT MATTER:
Real Obligation (Obligation to give) – that in which the subject matter is

a thing which the obligor must deliver to the obligee.
Personal Obligation (Obligation to do or not to do) – that in which the

subject matter is an act to be done or not to be done. There are two kinds of
personal obligation: Positive Personal Obligation or obligation to do or to render
a service and Negative Personal Obligation or the obligation not to do, which
naturally includes the obligation not to give.
SOURCES OF OBLIGATIONS (Art. 1157):
1. Law – it is a rule of conduct, just and obligatory, laid down by

legitimate authority for common observance and benefit.
2. Contracts – it is the meeting of the minds between two or more
persons whereby one binds himself with respect to the other, to give
something or to render some service. It has the force of law between
the parties and must be complied with in good faith.
3. Quasi-contracts – they refer to certain lawful, voluntary and
unilateral acts giving rise to a juridical relation to the end that no one
shall be unjustly enriched at the expense of another.
Kinds of Quasi-contract:
Negotiorum Gestio – this refers to the voluntary administration or

management of the property, business or affairs of another without
the knowledge or consent of the latter. There is now the obligation to
reimburse the gestor for the necessary and useful expenses.
Solution Indebiti – this refers to the payment by mistake of an

obligation, in excess of what should have been paid or payment to a
person not due to receive it.
4. Delicts – acts or omissions punishable by law; this refers to crimes or

felonies defined under the law to be punishable as such. The rule is
that every person criminally liable is also civilly liable.
Scope of civil liability under delicts:
a. Restitution;
b. Reparation for the damage caused; and
c. Indemnification for consequential damages.
5. Quasi-delicts or Torts – these are acts or omissions that cause

damage to another there being fault or negligence but without any
existing contractual relation between the parties. There is now an
obligation to pay for damages.
Requisites of Quasi-delict:
a. There must be an act or omission;

b. There must be fault or negligence;
c. There must be damage caused;
d. There must be a direct relation of cause and effect between the act
or omission and the damage; and
e. There is no pre-existing contractual relation between the parties.
CRIME AND QUADI DELICT DISTINGUISED:
1. In crime, there is criminal or malicious intent or criminal negligence,

while in quasi-delict, there is only negligence;
2. In crime, the purpose is punishment, while in quasi-delict,
indemnification of the offended party;
3. Crime affects public interest, while quasi-delict concerns private
interest;
4. In crime, there are generally two liabilities: criminal and civil, while in
quasi-delict, there is only civil liability;
5. Criminal liability can not be compromised or settled by the parties
themselves, while the liability for quasi-delict can be compromised as
any other civil liability; and
6. In crime, the guilt of the accused must be proved beyond reasonable
doubt, while in quasi-delict, the fault or negligence of the defendant
need only be proved by preponderance (superior or greater weight) of
evidence.

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LAW ON OBLIGATIONS AND CONTRACTS

(Civil Code of the Philippines,

An obligation is a juridical necessity to give, to do, or not to do (Art.

REQUISITES / ELEMENTS OF AN OBLIGATION:

1. Passive Subject (Debtor/Obligor) – the person who is bound to the

KINDS OF OBLIGATION ACCORDING TO THE SUBJECT MATTER:

Real Obligation (Obligation to give) – that in which the subject matter is

Personal Obligation (Obligation to do or not to do) – that in which the

SOURCES OF OBLIGATIONS (Art. 1157):

1. Law – it is a rule of conduct, just and obligatory, laid down by

Negotiorum Gestio – this refers to the voluntary administration or

Solution Indebiti – this refers to the payment by mistake of an

4. Delicts – acts or omissions punishable by law; this refers to crimes or

Scope of civil liability under delicts:

5. Quasi-delicts or Torts – these are acts or omissions that cause

a. There must be an act or omission;

CRIME AND QUADI DELICT DISTINGUISED:

1. In crime, there is criminal or malicious intent or criminal negligence,

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