9 the obligation

OBLIGATION a juridical necessity to give, to do, or not to do. (1156) Resolutory happening of the obligation results in the
A juridical necessity to comply with a prestation. (Sanchez Roman) extinguishment of the obligation
A legal relation established between one person and another whereby the latter is bound to the Subject to a term or period
fulfillment of a prestation which the other may demand of him. (Manresa) With a Suspensive or from a day certain obligation is demandable
Types term or only upon the expiration of the term
1. Civil has a binding force in law, may be enforced in courts of justice, and based on positive law. period Resolutory or to a day certain the obligation terminates upon
2. Natural cannot be enforced by action, binding on the party who makes it in conscience, and based the expiration of the term
on natural law.
Sources (1157)
Requisites (JAPP) 1. Law not presumed. It must be expressly determined by the Civil Code or special law establishing
1. Juridical or legal tie which binds the parties to the obligation them. (1158)
2. Active subject the creditor or obligee who can demand the fulfillment of the obligation 2. Contracts have the force of law between the parties and should be complied with in good faith.
3. Passive subject the debtor or obligor to whom the obligation is juridically demandable (1159)
4. Prestatation the object of the obligation o Compliance in good faith performance in accordance with the stipulations, clauses, terms and
- Form of obligation (in writing) is required only in obligations arising from contracts. conditions
3. Quasi-contracts result from the lawful, voluntary and unilateral act of a person which makes the
Classification parties bound to each other, based on the principle of unjust enrichment such as Negotiorum Gestio
Natural Based on natural law and Solutio Indebiti.
Juridical o Presumptive consent consent required to perfect contracts are provided by law through
Civil Based on positive law
Quality
Mixed Based on both presumption.
Unilatera 4. Acts and omissions punishable by law (1161) based on Article 100 of the RPC Every person liable
Only one party is bound for a felony is also civilly liable.
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Bilateral Both parties are mutually and reciprocally bound 5. Quasi-delicts Requisites: 1) Fault or negligence of the defendant; 2) Damage or injury by the plaintiff;
Individua and 3) Relation of cause and effect between the first two.
Only one obligor o Article 2176 includes not only fault or negligence, but also acts with are intentional or voluntary.
Parties l
Several obligors. Damages from criminal acts may still be recovered in a separate civil action even if the accused is
Collectiv Joint Each obligor is liable only for his proportionate share of the found guilty or acquitted, provided that the plaintiff will not recover in both scores.
e obligation o Only the civil liability arising from the crime (under Article 100) is deemed to be instituted with
Solidary Each obligor may be held liable for the entire obligation the criminal action and requires reservation. Independent civil actions under Article 32, 33, 34,
Determin and 2176, is not waived and do not need reservation.
Object is specific How to determine the source of obligation? According to Manresa
ate
Generic Object is designated by its genus or class Source is law If the law establishes the obligation, and the act upon which it is based only
Simple Only one undertaking determines when it becomes demandable
Several undertakings. Source is the act itself If the law merely recognizes or acknowledges the existence of the obligation,
Conjunctive all are demandable at the same time its only purpose is to regulate the obligation.
Distributive only one out of several is demandable
Multiple Nature and Effect of Obligations
Alternative Obligor may choose one out of several obligations
Facultative Obligor is allowed to substitute for another obligation Obligation to Give
which is due and demandable Types
Positive Obliged to give or to do something 1. Determinate object is particularly designated, physically segregated from all others of the same
Object Negative Must refrain from giving or doing something class
Real Giving something 2. Generic designated merely by its class or genus
Personal Doing or not doing something
o Rights of the Creditor
Possible Capable of fulfillment in nature, as well as in law
To the thing and the fruits from the time the obligation to deliver arises (1164)
Impossib
Not capable of fulfillment either in nature or in law When? If based on law, quasi contracts, crime, quasi delicts time designated by the
le
Divisible Susceptible of partial performance Civil Code and special laws creating or regulating them.
If based on contracts perfection of the contract. XPN: stipulation of the parties
Indivisibl
Not susceptible of partial performance Nature of the right:
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Principal Main undertaking Before delivery: only a personal right (right to demand from another, as a definite
Accessor Merely an undertaking to guarantee the fulfillment of the principal passive subject, enforceable only against a definite person)
y obligation After delivery: real right (right pertaining to a person over a specific thing, without a
Perfection and Pure Not subject to any condition and term, immediately demandable passive subject, enforceable against the whole world)
Extinguishmen Conditio Subject to condition
t nal Suspensive the happening of the condition results in the birth of Rights of Determinate Compel specific performance (1165)
 Recover damages for breach (caused by delay, fraud, negligence, or Reciprocal obligations established at the same time, for the same cause, and result in
contravention of the tenor) mutual relationships of creditor and debtor between the parties.
Ask for the performance Delay When the other party fulfills his obligation while the other does not or is not
the
Ask that the obligation be complied with at the expense of the debtor ready to comply in a proper manner with what is incumbent upon him.
Creditor
Generic (1165) Effect: Liable for Damages
Recover damages for breach (caused by delay, fraud, negligence, or b. Fraud conscious and intentional proposition to evade the normal fulfillment of an
contravention of the tenor) obligation; synonymous with bad faith (1173)
Perform the obligation specifically Fraud in the Performance Fraud in the Est
Take care of the thing with the proper diligence of a good father of a family Present in the performance Present in th
(1163) For the purpose of evading the normal fulfillment For the purpose of securing t
XPN: 1. Law provides otherwise; and 2) Parties stipulation party
Deliver all accessions and accessories even though not mentioned. (1166) Results in the nonfulfillment of the obligation Results in the vitiati
Accessions all those which are produced by the thing and those which are Liability for damages Annulment of
Obligation Determinate
naturally or artificially attached thereto. Effect: Liable for Damages (1171) the extent of which comprehends all consequences
s of the
Accessories necessary for the perfection, use embellishment of the reasonably attributed to the fraud
Debtor
object Waiver for future fraud void for being contrary to public policy (1171)
Liable for damages ONLY in case of voluntary breach: 1) delay; and 2) Only the waiver for fraud not yet committed, not that which has already been
promises to deliver to two or more persons who do not have the same committed.
interest (1165) c. Negligence (1172) omission of the diligence required by the obligation and
Deliver the thing which is neither of inferior or superior quality. corresponds with the circumstances of persons, time, and place.
Generic
Liable for damages Degree of diligence required is not stated diligence of a good father of a family
(1173)
Obligation to Do (1167) Types:
Obligor fails to do Obligee can have the obligation performed at the expense of the obligor + Culpa Contractual Culpa Aquiliana
damages Negligence merely an incident in the performance of Negligence is independent an
XPN: Where the personal and special qualification of the obligor is the principal motive for the obligation.
the establishment of the obligation. The only remedy is to recover damages. There is always a pre-existing contractual relation. There may or may not be a pr
Cannot compel obligor to perform the act relation.
Done in contravention of the tenor Source of obligation to pay damages is the breach Source is the act itself
Have the obligation performed at the expense of the obligor + damages Due diligence in selection and supervision of This defense is available.
Ask that what has been poorly done be undone + damages employees is not available.
Obligation Not to Do (1168) Prima facie proof of contract and its breach is The negligence of the defend
If the obligor does what has been forbidden 1) have it undone at the obligors expense; or 2) sufficient.
damages (in case that it cannot be undone because of the permanent consequences of the act, or
physical or legal impossibility to undo, or conflicting rights of third persons) Negligence vs. Fraud The difference is the intent to cause injury, presence of bad faith.
Test of negligence Whether the defendant used reasonable care and caution which
Breach an ordinary prudent man would have used in the same situation.
Types Involuntary caused by an event which cannot be foreseen, or which though
1. Voluntary There is liability for damages. Causes: foreseen, is inevitable; no liability for damages.
a. Default (1169) delay in the fulfillment of the obligation with respect to the time.
Types: PURE AND CONDITIONAL OBLIGATIONS
i. Mora Solvendi delay of the debtor to perform the obligation Pure one whose effectivity or extinguishment does not depend upon the fulfillment or non-
ii. Mora Accipiendi delay of the creditor to accept the delivery fulfillment of a condition, or expiration of a term or period, and as a consequence, is immediately
iii. Compensatio Morae delay in reciprocal obligations demandable.
o Requisites: Conditional one whose effectivity is subordinated upon a future and uncertain fact or event.
1. Obligation is demandable and already liquidated o Past unknown event not a condition because it lacks the requisites of futurity and certainty.
2. Obligor delays performance Types
3. Creditor requires the performance judicially (by filing a complaint) or extrajudicially Divisible Susceptible of partial realization
(either orally or in writing) (1169). Indivisible Not susceptible of partial realization
When demand is not necessary? Conjuncti There are several conditions, all of which must be realized.
1. When the obligation or law expressly declares ve
2. When from the nature and the circumstances it appears that the designation of the Alternativ There are several conditions but only one must be realized.
time is the controlling motive for the establishment of the obligation e
3. When demand would be useless, when the obligor has rendered it beyond his power Expressed When the condition is stated expressly.
to perform. Implied When the condition is tacit.
There is no default in negative obligations.
 Suspensive Condition (condition precedent) a future and uncertain event upon the
happening or fulfillment of which rights arising out of the obligation are acquired. (1181)
The effectivity of the obligation is suspended until the happening or fulfillment of the
condition.
If the suspensive condition does not take place, the obligation will not exist.
Effect: Upon the constitution of the obligation and pending the happening of the
condition, what is acquired is only a mere hope or expectancy, which is however,
protected by law.
Doctrine of Constructive Fulfillment (1186) The condition shall be deemed fulfilled
when the obligor voluntarily prevent its fulfillment. (only to suspensive, and not to
resolutory conditions)
During the pendency of the condition (1188)
Creditor may bring actions for the preservation of his right
Debtor his obligation is held in suspense until the fulfillment of the condition.
Hence, he can recover what he has paid by mistake.
Principle of Retroactivity (1187) the effects of the conditional obligation to give,
once the condition has been fulfilled, shall retroact to the day of the constitution of the
obligation.
Ratio: The condition is only an accidental, not an essential element of the obligation.
Potestative Condition one whose fulfillment depends upon exclusively upon the will of
either parties to the obligation.
Upon the will of the creditor VALID
Ratio: The creditor is naturally interested in the fulfillment of the condition.
Upon the will of the debtor VOID (1182)
Ratio: The obligation is illusory.
It applies only as to suspensive condition. If resolutory, it is valid. Ratio: Debtor
is naturally interested with reacquisition of his rights which became vested with
the creditor.
It does not apply to a pre-existing obligation made as a condition.
Casual Condition one whose fulfillment depends upon chance and/or the will of a third
person.
Mixed Condition one whose fulfillment depends partly upon the will of a party to the
obligation and partly upon chance and/or the will of a third person.
Effect: The obligor will be deemed to have sufficiently performed his part of the
obligation if he has done all in his power, even if the condition has not been fulfilled in
reality.
Possible Condition capable of realization according to nature, law, public policy, good
customs
Impossible Condition not capable of realization according to nature, law, public policy,
good customs
Effect: The obligation is VOID. (1183)
XPNs:
1. Obligation is pre-existing, only the condition is void, but the obligation is valid.
2. Obligation is divisible, the part not affected by the impossible condition is valid.
Condition to do an impossible thing Condition is deemed as not agreed upon, the
obligation is valid, deemed as pure obligation.
Positive Condition involves the performance of an act or the fulfillment of an event.
Effect: The condition that some event happen at a determinate time shall EXTINGUISH
the obligation 1) as soon as the time expires, or 2) it becomes indubitable that the event
will not take place. (1185)
Negative Condition - Involves the non-performance of an act or the non-fulfillment of an
event.
Effect: The condition that some event will not happen at a determinate time shall render
the obligation EFFECTIVE 1) from the moment the time indicated has elapsed, or 2) it has
become evident that the event cannot occur.
If no time has been fixed, the condition shall be DEEMED FULFILLED at such time as may
have probably been contemplated, bearing in mind the nature of the obligation.
Power to Rescind in Reciprocal Obligations when one of the obligors should not comply with
what is incumbent upon him.
o Remedies: Choose between 1) Specific Performance + damages or 2) Rescission + damages
Alternative remedies, not cumulative. But the parties may make a prayer for
alternative remedies, which it is deemed to leave for the court to decide.
Rescission may still be availed of even after specific performance was first chosen if
the latter should become impossible. (1191)
Must be invoked judicially. XPN: When the contract contains a resolutory provision,
provided it is not contrary to law, morals, good customs, public order, or public
policy.
o Not applicable in the following cases:
1. Reciprocal contracts with resolutory provisions
2. Contracts of partnership when one partner failed to pay the amount he bound
himself to contribute
3. Governed by Recto Law
4. Governed by Maceda Law
o Nature of the breach must be substantial as to defeat the object of the parties in entering
into the agreement
o Rescission is not absolute. The court may, if the circumstances warrant, fix a term for the
debtor to fulfill his obligation.
o Effects of Rescission:
1. The parties must surrender whatever they may have received from the other.
2. As to third parties:
a. If a third person who has not acted in bad faith, has already acquired the
thing, rescission is no longer possible. The only remedy is to proceed
against the person who caused the transfer.
b. If the third person is in bad faith, he can still go after the property.
o If both parties have committed a breach, the liability of the first infractor shall be equitably
tempered by the courts. If it cannot be determined which of the parties first violated the
contract, the same shall be deemed extinguished, and each shall bear his own damages.
DIVISIBLE AND INDIVISIBLE OBLIGATIONS
Divisible the object of the prestation is susceptible of partial performance without its essence being
changed.
Indivisible not susceptible of partial performance because its essence will be changed.
When is a thing/object divisible?
Divisible if separated into parts, its essence is not changed or its value is not decreased
disproportionately because each parts is homogenous and analogous to each other, as well as to the
thing itself. It is possible to reconstruct
Indivisible if separated into parts, its essence is changed or its value is decreased
disproportionately
Test of Divisibility
o Obligations to Give
Object is by its very nature indivisible obligation is indivisible. (This is absolute.)
Object is by its nature divisible GR: divisible obligation.
XPNs:
1. If provided by law
2. Intended by the parties, express or implied (if although divisible, each parts
complements the other parts or when the purpose of the obligation requires
the delivery of all parts.
 o Obligation to Do 2. When the different prestations are subject to different terms and conditions
Prestation is not susceptible of partial performance indivisible (This is absolute.) 3. When the obligation is in part liquidated, and unliquidated
By nature is susceptible of partial performance divisible if Breach of joint indivisible obligations gives rise to damages. The debtor who is ready to fulfill shall not
1. Certain number of days work contribute beyond his part (1224). The debtor who is not ready shall bear the burden of paying all the
2. Accomplishment of work by metrical units damages to the creditors, and to the co-debtors if they also suffered damages.
3. Things which by their nature are susceptible of partial performance (1225)
XPNs:
1. If provided by law
2. Intended by the parties, express or implied
o Obligation Not to Do depends upon the character of the prestation
GR: The creditor cannot be compelled to partially receive the prestation, neither may the debtor be
required to make partial payments.
XPNs:
1. Obligation expressly stipulates the contrary