OBLICON REVIEWER

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

Meaning of obligation “ob” and “ligare” = to bind

“obligatio
 Initially a physical act of being in shackles
 Time of Cicero: changed to vinculum juris (bond of law) than vinculum of chains

Gives obligation a passive definition

 Only stresses duty of debtor or obligor

Meaning of juridical necessity Debtor must answer to his obligation whether he likes it or not, otherwise he shall face legal
consequences

Nature of obligations in CC Civil obligation

 Binding force in law
 Gives creditor right to enforce against the debtor

Natural obligation
 no grant of right to enforce performance
 based on equity and natural law
 HOWEVER, if debtor voluntarily performed the obligation, the obligor cannot
retrieve the what has been delivered
 ALSO, if the civil obligation has prescribed, the natural obligation still subsists

EXAMPLE
If X has a cause of action evidenced through a promisory note, where he has to pay 10k
to Y within 10 years, even if the contract already prescribed, X is still bound to pay the 10k
because of equity and natural law.

Requisites of an obligation (P2AJ) Passive subject

 Debtor or obligor

Prestation/ object/ service

 Subject matter of the obligation
 Conduct to be observed by the obligor = to give, to do or not to do
 In bilateral relations, the parties are reciprocally creditors and obligors

Active subject
 Creditor or oblige

Juridical/ legal tie

 What binds or connects the parties to the obligation
 Determined by knowing the source of the obligation

EXAMPLE:
Under a building contract, X bound himself to construct a house for Y for 1 million pesos

Passive = X
Active = Y
Prestation = construct a house
Juridical tie = building contract

Form of obligation Form is sometimes considered as the 5th requisite in obligation

General rule
 obligation arising from contracts do not have any required form

Obligation arising from other sources

 do not have any form

Obligation, right and wrong Obligation

 act which the law shall enforce
(cause of action) distinguished
Right
 power to demand from another prestation

Wrong (cause of action)

  act or omission of one party violating the right of the other, causing injury to the
latter
Breach of contract Subject matter  contract violated (item which controversy has risen; right, thing, or
contract under dispute)

breach  cause of action

Essential elements of cause of 1. Legal right in favor of a person (creditor)

2. Correlative legal Obligation of the debtor
action (LOA)
 Governed by substantive law
 Springs from cause of action but does not accrue until all facts which constitute
the cause of action arises
3. Act or omission in breach
 Only time where cause of action arises
 Governed by procedural law

If any of these are absent, the complaint is vulnerable of being dismissed due to lack of
cause of action

Cause of action based on written Should be brought within 10 years from the time the right of action accrues
contract
Period of prescription commences from the breach not from the execution of the contract

Start of the cause of action

 Rescind contract of sale in installment basis  time installment was last not paid
 Obligation payable on demand  upon demand
 Loan with real estate mortgage where creditor could unilaterally increase interest
 date when debtor discovered the increased interest rate
 Agreement to buy and sell was conditioned upon the completion of the survey
 upon completion of survey
 Money claims from contract of employment (prescribe in 3 years from time cause
of action accrues)  date employer made denial of employee’s claims
 Reformation of contract  contract appeared disadvantageous
 Nature of the product sold  depends (for example, if it is an oil product, the
buyer assumes that the agreed volume is already in those drums, but in case of
short deliveries, it shall arise from the discovery of the same certainty)