ARTICLE 1156-1160
ito ay partikular na gawain ng may
What is an Obligation?
Obligation is a judicial necessity to
give,to do or not to do.
Obligation derived from the latin word
“obligatio” meaning tying or binding.
Juridical necessity connote that in
case of non compliance, there will be
legal sanction.
Ang ibig sabihin ng Judicial necessity ay
ang hidi pagsunod sa kasunduan ay
magdodolot ng kaparusahang naaayun
sa batas.
Oblegee or Creditor- One to whom an
obligation is due,(Ang pinag
kakautangan.)
Obligor or Debtor- One obliged to do
something,(may sagutin o pananagutan)
DISCUSSION:
ELEMENTS OF OBLIGATION
1. Active subject- Known as the
oblegee or creditor,who can demand the
fulfillment of the obligation;
2. Passive Subject-Known as the
obligor, againts whom the obligation is
juridically demandable;
3. Object or Prestation- The subject
matter of the obligation which has an
economic value or susceptible of
pecuniary substitution in case of
noncompliance.
4. Efficient cause- The vinculum or
juridical tie which bind the parties to the
obligation and which may arise from
either bilateral or unilateral acts of
persons.
PRESTATION- Ito ay hindi bagay ngunit
pananagutan (debtor)ito ay pweding
masalasay sa pag bigay, pag-gawa o
hindi pagawa.
KINDS OF PRESTATION
1. from the viewpoint of performance;
a) Positive obligation or the obligation
to give or to do.
b) Negative obligation or the obligation
not to do.
2. From the viewpoint of the subject
matter or prestation, it may be;
a) A personal obligation or the
obligation to do or not to do;
b) A real obligation or the obligation to
give;
i. Determinate or specific thing-
Object is particularly designated or
physical segregated from all others of
the same class;
ii. Generic-object is designated merely
by its class or genus;
iii. Limited generic thing- when the
generic objects are confined to a
particular class,
example; an obligation to deliver one of
my horse.
3. From the view point of sanctions, it
may be;
a) Civil obligation which give a right of
action to compel their performance;
b) Natural obligations which is not
based on positive law but on equity and
natural law, do not grant a right of action
to enforce their performance, but after
voluntary fulfillment by the obligor, they
authorize retention of what has been
delivered or rendered by reason thereof.
CLASSIFICATION OF OBLIGATION
1. As to the primary classification
under the civil code;
a) Pure and conditional (Art 1179-1192).
b) With a period (Art. 1193-1198)
c) Alternative and facultative (Art 199-
1206)
d) Joint and solidary (Art 1207-1222)
e) Divisible and indivisible
f) With a penal clause
2. classification of a secondary
character gathered from the scattered
provisions of the civil code.
a) Legal conventional, and penal (Art
1158-1162)
b) Real and personal (Art 1163-1168)
c) Determinate and generic (Art 1167-
1166)
d) Positive and negative (Art 1167-1168)
e) Unilateral and bilateral (Art 1169-
1191)
f) Individual and collective (art
1207,1223)
g) Accessory and principal (Art 1166-
1226)
3. As to judicial Quality;
a) Natural- the obligation is in
accordance with natural law.
b) Civil- the obligation is in accordance
with positive law;
c) Mixed-the obligation is in accordance
with both natural and positive law.
4. As to parties;
a) Unilateral and bilateral – unilateral,
where only one party is bound and
bilateral, where both parties are
mutually and reciprocally bound;and
b) Individual and collective – Individual,
where there is only one
obligor; and collective, where there are
several obligors. The latter may be (1)
joint, when each obligor is liable only for
his proportionate share of obligations, or
(2) solidary, when each obligor may be
held liable for the entire obligation.
5. As to object;
a) Determinate and generic –
determinate, when the object is specific;
and generic, when the object is
designated by its class or genus;
b) Simple and multiple – simple, when
there is only one undertaking; and
multiple, when there are several
undertakings. Multiple obligations
may be:
i. Conjunctive – when all the
undertakings are demandable at the
same
time; or
ii. Distributive – when only one
undertaking out of several is
demandable. Distributive obligations
may be:
1. Alternative – when the obligor is
allowed to choose one out of several
obligations which may be due and
demandable;
2. Facultative- when the obligor is
allowed to substitute another obligation
for one which is due and demandable.
c) Positive and negative- when the
obligor is obliged to give or do
something; and negative, when the
obligor must refrain from giving or doing
something;
d) real and personal-when the obligation
consists in giving something; and
personal, when the obligation consists in
doing or not doing something.
e) Possible and impossible- when the
obligation is capable of fulfillment in
nature as in law; and imposible, when
the obligation is not capable of fullfiment
either in nature of law;
f) Divisible and indivisible- Divisible
when the obligation is susceptible of
partial performance; Indivisible is when
the obligation is not susceptible of
partial performance.
g) Accessory and principal- principal is
when it is the main undertaking.
Accessory is when it is merely an
undertaking to guarantee the fulfillment
of the principal obligation.
6. As to perfection and
extinguishment
a) Pure-the obligation is not subject to
any condition or term and is immediately
demandable.
b) Conditional- The obligation is subject
to a condition which may be;
i. Suspensive- in which case the
happening or fullfilment of the condition
results in the birth of the obligation; or
ii. Resolutory- in which case the
happening or fulfillment of the condition
results in the extinguishment of the
obligation.
c) with a term of period- the obligation is
subject to a term or period which may
be;
i. Suspensive or from a day certain- the
obligation is demandable only upon the
expiration of the term.
ii. Resolution or to a day certain- the
obligation terminates upon the
expiration of the term.
ARTICLE. 1157
SOURCES OF OBLIGATION
Obligations arise from:
(1) Law;
(2) Contracts;
(3) Quasi-contracts;
(4) Acts or omissions punished by
law; and
(5) Quasi-delicts. (1089a)
ARTICLE 1158
Obigations 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 establishes them; and as to
what has not been foreseen, by the
provisions of this Book.
Ang mga obligasyon na hango sa batas
ay hindi inaakala. Ang mga obligasyon
lamang na hayagang nakasaad sa Code
na ito at sa mga espesyal na batas ang
may bisa, at pinapatakbo ng mga utos
ng batas na nagtatag ng mga ito; para
sa mga obligasyon na hindi inaasahan,
sila ay bibigyang bisa ng probisyon ng
Libro na ito.
DISCUSSION:
LAW (OBLIGATION EX LEGE)
• Must be expressly or impliedly set forth
and cannot be presumed
Obligation 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 establishes them; and as to what
has not been foreseen, by the provision
of this book.
SOURCES: Article 1090, old civil Code
Serrano vs Central bank
Petition for mandamus and prohibition,
with preliminary injunction that pursues
the creation of joint and solidary liability
against the respondent.
FACTS
Serrano filed a case against Overseas
Bank and Central bank so that they may
jointly separately liable, because, the
P350K worth of time deposits by
Serrano in overseas bank of Manila is
not successful when he made a series
of encashment, because on the alleged
failure of the Overseas Bank of Manila
to return the time deposits made by
petitioner and assigned to him, because
respondent Central Bank failed in its
duty to exercise strict supervision over
respondent Overseas Bank of Manila to
protect depositors and the general
public.
ISSUE
Whether the Central Bank is Liable for
the case filed?
HELD
No, Bank deposits are in the nature of
irregular deposits. They are really loans
because they earn interest. All kinds of
bank deposits, whether fixed, savings,
or current are to be treated as loans and
are to be covered by the law on loans.
Current and savings deposit are loans to
a bank because it can use the same.
The petitioner here in making time
deposits that earn interests with
respondent Overseas Bank of Manila
was in reality a creditor of the
respondent Bank and not a depositor.
The respondent Bank was in turn a
debtor of petitioner. Failure of the
respondent Bank to honor the time
deposit is failure to pay s obligation as a
debtor and not a breach of trust arising
from depositary’s failure to return the
subject matter of the deposit
WHEREFORE, the petition is dismissed
for lack of merit, with costs against
petitioner.
ARTICLE 1159
OBLIGATIONS ARISING FROM
CONTRACTS HAVE THE FORCE OF
LAW BETWEEN THE CONTRACTING
PARTIES AND SHOULD BE
COMPLIED WITH IN GOOD FAITH.
Ang mga obligasyon na nag simula sa
mga kontrata at nagkaroon ng bisa sa
batas sa pagitan ng mga nagkasundong
partido ay dapat gampanan ito ng may
mabuting kalooban. *Distinction
between Obligation […]
DISCUSSION:
CONTRACT (OBLIGATION EX
CONTRACTU)
• Must be complied with in good faith
• it is the “law” between parties;
• neither party may unilaterally evade his
obligation in the contract, unless:
a. Contract authorizes it
b. Other party assents
• Parties may freely enter into any
stipulations provided they are not
contrary to law, morals, good customs,
public order or public policy.
ARTICLE 1160
Obligations derived from quasi-
contracts shall be subject to the
provisions of Chapter I, Title XVII of
this Book.
Ang mga obligasyong galing sa quasi-
contracts ay maipapasailalim sa mga
probisyong nakasaad sa Chapter I, Title
XVII ng Librong ito.

DISCUSSION:

QUASI-CONTRACT (OBLIGATION EX
QUASICONTRACTU)

• Juridical relation resulting from lawful,

voluntary and unilateral acts, which has
for its purpose, the payment of
indemnity to the end that no one shall
be unjustly enriched or benefited at the
expense of another.
• Distinguished from other Sources
1. act giving rise to a quasi contract
must be LAWFUL distinguishing it from
delict;
2. act must be VOLUNTARY
distinguishing it from quasi-delict which
is based on fault or negligence;
3. act must be UNILATERAL
distinguishing it from contract which is
based on agreement.

KINDS OF QUASI-CONTRACT
• Negotiorum gestio:
unauthorized management; arises
whenever a person voluntarily takes
charge of the agency or management of
another’s abandoned business or
property without the latter’s authority
• Solutio indebiti:
undue payment. Arises when a person
unduly delivers a thing through mistake
to another who has no right to demand it
(must not be through liberality or some
other cause)