Source: The Law on Obligations and Contracts, 2014 by Hector De Leon

[GENERAL PROVISIONS]

• Right - the power under law to demand from another any prestation.
• Wrong - violation of a right which becomes cause of action.

• Obligation [Art. 1156]

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

Sources of Obligations [Art. 1157]

(1) Law
i.e. Taxation

(2) Contracts
- Definition [Art. 1305]
"A contract is a meeting of minds between two
persons whereby one binds himself, with respect to the other,
to give something or to render some service."

- Binding force [Art. 1159]

"Obligations arising from contracts
have the force of law between the contracting parties and
should be complied with in good faith."

- Freedom to Stipulate [Art. 1306]

"The contracting parties may establish such stipulations, clauses,
terms and conditions as they may deem convenient,
provided they are not contrary to law, morals, good customs, public
order, or public policy."

MemorAid: SCTC-LMGPP

(3) Quasi-contracts
lawful-voluntary-unilateral acts;
enforceable so that no one shall be unjustly enriched at the expense of
another.
Catch-provision for Contracts; infinite variety

Examples:
- Negotiorum gestio
Latin for "management of business";
Voluntary management of property or affairs of another without
knowledge or consent of the latter.

- Solutio Indebiti [ART. 2154]

"If something is received when there is no right to demand it,
and it was unduly delivered through mistake,
the obligation to return it arises."

(4) Delicts
Since crimes causes not only moral evil, but also material damage.
[Art. 100, RPC] "Every person criminally liable for a felony is also civilly
liable."

Scope of Civil liability:

 (4.1) Restitution - return of the thing
(4.2) Reparation - cannot be returned? 'Amount' or 'Value' of the thing.
(4.3) Indemnification - damages paid not for the thing, but for the
inconvenience to the offended party.
Examples: unearned income, hospital expenses, etc.

(5) Quasi-delicts
Not criminally liable, but civilly liable.
Damage caused through fault or negligence.

Examples:
- obligation of owner of pet/animal for damage it caused
- Art. 11(1), RPC: Self-defense
- Art. 12(4, & 7), RPC: Accident, & Failure to perform an act required
by law for some lawful insuperable cause.

Delicts vs. Quasi-delict

• Intent of offender = intentional/criminal negligence : negligence
• Rationale of payment = punishment : indemnification
• Concerning = public interest : private interest
• Guilt of accused = beyond reasonable doubt : preponderance