Obligation – juridical necessity to give, to do or Indeterminate/Generic Thing – not particularly

not to do. designated or physically segregated from all

others of the same class; will not perish; can be
Requisites of Obligation
replaced with the same thing; in case of loss
1. Active Subject – party who has the right to during fortuitous event, obligation will not
demand (creditor). extinguish.
2. Passive Subject – party who is obliged to
Obligation of debtor to give determinate thing
perform (debtor).
3. Prestation – object or subject matter of the 1. Take good care of the thing with the diligence
obligation. of a good father of a family (ordinary care),
4. Efficient Cause – juridical tie that binds the unless law requires another standard of care
parties to the obligation. (extraordinary diligence).
2. To deliver the thing.
Civil Obligation – juridical necessity to give, to do
3. To deliver the fruits of the thing
or not to do; enforceable by court action.
Kinds of Fruits:
Natural Obligation – based on the natural law; a. Natural Fruits – products of the
exist in equity and moral justice; not enforceable. soil/animals.
b. Industrial Fruits – produced by land of
Sources of Obligation any kind through labor.
1. Law – obligation arises from the c. Civil Fruits – result of a juridical
stipulation/rule of the law. relation.
2. Contracts – obligation arises from the meeting Right of the creditor over the fruits
of the mind of two persons whereby one a. From the time the obligation to
binds himself in favor of another to give or to deliver arises; until delivered to him.
render something/service. Obligation of thing arises
3. Quasi-Contracts – obligation arises from a a. No suspensive period – date of
lawful, voluntary and unilateral acts that gives perfection
rise to a juridical relation where no one shall b. With suspensive period – arrival of
be unjustly enriched at the expense of the term/fulfillment of the obligation.
another. Rights of the creditor
a. Negotiorum Gestio – voluntarily a. Personal Rights – right that may be
administration of the property of enforced by one person to another.
another w/o his consent; creates b. Real Rights – right over a specific
obligation to reimburse. thing that may be enforced against
b. Solutio Indebiti – payment by the whole world.
mistake; creates obligation to return 4. To deliver its accessions and accessories,
the payment. mentioned or not.
4. Crimes/Delicts – obligation arises from illicit a. Accessions – fruits of a thing or
acts/doing; creates civil liabilities. additions to or improvements upon a
5. Quasi-Delicts (Tort/Culpa aquiliana) – thing (the principal); not necessary;
obligation arises from acts or omission that can exist w/o accessories.
cause damage to another (fault/negligence) b. Accessories – things joined to or
w/o pre-existing contractual relation between included to the principal thing for the
the parties. thing’s better use/completion; should
go together w/ the principal thing.
Determinate/Specific Thing – designated or
physically segregated from all others of the same Remedies of the creditor
class; irreplaceable; in case of loss during 1. If debtor fails to deliver determinate thing
fortuitous event, obligation will extinguish. a. Compel to make delivery
b. Demand damages
2. If debtor fails to deliver generic thing Kinds of Negligence
a. Ask that the obligation be complied
1. Culpa Contractual (contractual negligence) –
with at the expense of debtor
negligence in the performance of a contract;
b. Demand damages
master-servant rule, negligence of servant is
3. If debtor fails his obligation to do smthng
also negligence of master.
Contravene the tenor
2. Culpa Aquiliana (Quasi-delict) – act or
a. Creditor may have the obligation
omission that caused damage to another; no
executed at the expense of debtor
pre-existing contractual relation.
b. Demand damages
3. Culpa Criminal (Criminal negligence) –
Poorly performed
negligence that results in the commission of a
a. Creditor may have the same undone
crime.
at debtor’s expense
b. Demand damages Delay (Default/Mora) – non-fulfillment of an
4. If debtor does what has been forbidden him obligation with respect of time.
a. Creditor may demand debtor to undo
it Kinds of Mora
b. Demand damages 1. Mora Solvendi – delay on the part of the
Damage – actual physical harm/injury suffered debtor.
2. Mora Accipiendi – delay on the part of the
Damages – monetary compensation paid to the creditor.
one who suffered harm/injury 3. Compensatio Morae – delay in reciprocal
obligation; both parties are in default; as if
Fraud (Dolo) – deliberate or intentional evasion by
there has been no delay.
the debtor of the normal compliance of his
obligation. General Rule: No demand, No delay.
Kinds of Fraud Exception: * law/stipulation, *time is the
controlling motive, *demand would be useless
1. Causal Fraud (dolo causante) – fraud without
(thing to be delivered has been lost/destroyed or
which consent would not have been given;
delivered to another person).
occurs when one party deceives another to
gain their consent to a contract; voidable. Fortuitous Events – events that could not be
2. Incidental Fraud (dolo incedente) – fraud foreseen; can be foreseen but inevitable;
without which consent would have still been impossible to foresee or avoid.
given but the person giving it would have
agreed on terms; the party employing it Acts of men (force majeure) – event independent
should be liable for damages; valid. of the will of the obligor but not of other human
wills (war, robbery).
Future Fraud – waiver of action for future fraud
cannot be made; void. Acts of God (majeure) – event independent of the
will of every human being (natural calamities)
Past Fraud – waiver of action for past fraud can be
subject to a valid waiver; act of generosity. Kinds of fortuitous event

Negligence (Culpa) – omission of that diligence 1. Ordinary FE – can be reasonably foreseen.

which is required by the nature of obligation; no 2. Extra-ordinary FE – cannot be reasonably
bad faith or malice; failure to observe for the foreseen.
protection of the interest of another person, that General Rule: No person shall be liable for
degree of care, precaution and vigilance which the fortuitous event; obligation will extinguish.
circumstances justly demand, whereby such other
persons suffers injury. Exception: *law expressly provides for liabilities,
*stipulation of the parties, * nature of obligation
requires assumption of risk.
Interest Bearing Debt (rebuttable presumption) extinguished upon the happening of the
condition.
Receipt of principal w/o reservation as to the
b. Potestative – condition depends upon the
interest shall give rise to the presumption that the
will of one of the contracting parties.
interest has been paid.
i. Part of the debtor
Receipt of later installment w/o reservation as to  Suspensive – obligation is void
the prior installments shall give rise to the regardless if the condition is
presumption that such prior installments have fulfilled.
been paid.  Resolutory – obligation is valid.
ii. Part of creditor – obligation is
Presumption – interference of a fact not actually valid whether the condition is
known arising from its usual connection with suspensive/resolutory.
another which is known or proved. Casual – condition that depends upon
Kinds of presumption chances or the will of 3rd person
Mixed P&C – condition depends partly
1. Conclusive – cannot be contradicted. upon the will of one of the parties and
2. Disputable – can be contradicted by partly upon the chance/will of the 3rd
presenting proof to the contrary. person.
Stepping into the shoes of another c. Possible – obligation that is capable of
fulfillment in its nature and by law.
Remedies of creditor in case debtor does not Impossible – not capable of fulfillment in
comply with his obligation (hierarchy) its nature and by law; obligation &
condition is void.
1. Specific performance + damages
d. Positive – condition that some event
2. Pursue leviable property of the debtor
happen at a determinate time; obligation
3. Collect from the debtor of hid debtor (the
extinguish as soon as the time expires or
debtor of my debtor is my debtor)
it has become indubitable that the event
4. Rescission
will not take place.
Transmissibility of Rights Negative – condition that some even will
not happen at a determinate time;
General Rule: All rights acquired in virtue of an
obligation becomes effective as soon as
obligation are transmissible.
the time indicated has elapsed or it has
Exception: *law prohibits, *agreement of parties, become evident that the event will not
*nature of obligation is not transmissible. occur.
e. Divisible – capable of partial performance.
Different Kinds of Obligation Indivisible – not capable of partial
1. Pure Obligation – one w/o a term/condition; performance by its nature or by law.
demandable at once. Fulfillment of Suspensive Condition
2. Conditional Obligation – One whose
demandability or extinguishment depends Gen. Rule: The effect of the fulfillment of the
upon the happening of the condition. suspensive condition retroacts to the day of the
a. Suspensive – the happening of the constitution of the obligation.
condition gives rise to the obligation
Exception:
(condition precedent); demandability of
 Reciprocal Obligation – fruits and interest
obligation is suspended until the
shall be deemed to have been mutually
happening of the condition.
compensated.
Resolutory – the happening of the
 Unilateral Obligation – debtor keeps the
condition extinguishes the obligation
fruits and interest received before the
(condition subsequent); obligation is
fulfillment of the condition.
demandable at once but it shall be
Rights of the parties before the fulfillment of the
condition

1. Creditor – he may bring the appropriate

actions for the preservation of his right.
2. Debtor – he may recover what he has paid by
mistake.

Debtor voluntarily prevents fulfillment of the

condition (he did something para makawala sa
obligation niya)
 Condition is deemed fulfilled
 Obligation immediately becomes demandable
 There must be an intention of debtor

Loss, Deterioration, Improvement of determinate

thing before the fulfillment of Suspensive
Condition

1. Loss of the thing – perished/goes out of

commerce/disappeared where existence is
unknown or cannot be recovered.
a. Without the fault of debtor –
obligation extinguished.
b. With the fault of debtor – debtor is
obliged to pay for damages.
2. Deterioration of the thing
a. Without the fault of debtor –
impairment shall be borne by
creditor; no liability on the part of
debtor.
b. With the fault of debtor – creditor
may choose between:
i. Rescission + damages
ii. Fulfillment + damages
3. Improvement of the thing
a. By nature/time – improvement shall
inure to the benefit of creditor
b. At the expense of the debtor – debtor
will have the right to a usufructuary;
he can have the enjoyment of the use
of the improved thing and its fruits.

Reciprocal Obligation – arises from the same

cause and in which each party is a debtor and a
creditor of the other; obligation of one is
dependent upon the obligation of the other.

Remedies of injured party in reciprocal obligation

1. Rescission
2. Fulfillment of obligation + damages