General Provisions of Obligation

1. THE LAW ON OBLIGATIONS AND
CONTRACTS

2. WHAT IS OBLIGATION?

3. OBLIGATIONS
• A juridical necessity to give, to do or not to do.
• It is derived from the Latin word "OBLIGATIO" which means
tying or binding.
• It is a tie or bond recognized by law wherein one is bound to
render something in favor of another.

4. WHAT ARE THE ESSENTIAL
REQUISITES OF AN OBLIGATION?

5. REQUISITES OF AN OBLIGATION
• Passive subject/Debtor/Obligor
• Active subject/Creditor/Obligee
• Object or prestation
• Juridical tie/Efficient cause

6. REQUISITES OF AN OBLIGATION
Under a building contract, X bound himself to build
a house for Y for P1,000,000.00

7. WHAT ARE THE KINDS OF
OBLIGATION ACCORDING TO ITS
SUBJECT MATTER?

8. OBLIGATIONS ACCORDING TO SUBJECT
MATTER
• Real Obligation - obligation to give; the subject matter is a
thing
• Personal Obligation - obligation to do or not to do; the subject
matter is an act to be done to not to be done
a) Positive Personal Obligation - obligation to do or to render
service
b) Negative Personal Obligation - obligation not to do

9. WHAT ARE THE SOURCES OF AN
OBLIGATION?

10. SOURCES OF AN OBLIGATION
• Law
• Contracts
• Quasi-contracts
• Acts or omissions punished by law
• Quasi-delicts

11. LEGAL OBLIGATIONS
• Obligations derived from law are not presumed.
• Only those expressly determined by law are
demandable.

12. CONTRACTUAL OBLIGATIONS
• Contract is a meeting of minds between two or more
persons whereby one binds himself, with respect to the
other, to give something or to render some service.
• Obligations arising from contracts have the force of law
between the contracting parties and should be complied
with in good faith.

13. QUASI-CONTRACTUAL OBLIGATIONS
• Quasi- contract is that juridical relation resulting from
lawful, voluntary and unilateral acts by virtue of which the
parties become bound to each other to the ends that no
one will be unjustly benefited at the expense of another.
• In quasi-contract, there is no consent but the same is
supplied by fiction of law.

14. QUASI-CONTRACTUAL OBLIGATIONS
KINDS OF QUASI-CONTRACTS:
1) Negotiorum Gestio - the voluntary management of the property or
affairs of another without the knowledge or consent of the latter.
2) Solution Indebiti - the juridical relation which is created when
something is received when there is no right to demand it and it
was unduly delivered through mistake.

15. CIVIL LIABILITY ARISING FROM
CRIMES/DELICTS
• The extent of the civil liability for damages arising from crimes
is governed by the Revised Penal Code and the Civil Code.
• The civil liability includes:
• Restitution
• Reparation for the damage caused
• Indemnification for consequential damages

16. OBLIGATIONS ARISING FROM QUASI-
DELICTS
• Quasi-delict is an act or omission by a person which causes
damage to another in his person, property, or rights giving rise
to an obligation to pay for the damage done, there being fault
or negligence but there is no pre-existing contractual relation
between the parties.

17. X obliges himself to deliver to Y an
brand new Iphone 14 promax 128 gb,
color purple.

18. X obliges himself to deliver to Y his
Iphone 14 promax.

19. What are the kinds of thing?

20. KINDS OF THING
• Specific or Determinate - particularly designated
or described or physically segregated from others
• Generic or Indeterminate - it belongs to a class or
genus and cannot be pointed out with particularity.

21. What is the duty of a
debtor/obligor in obligation
to give a determinate thing?

22. OBLIGATION TO GIVE A DETERMINATE THING
• Preserve or take care of the thing due with the diligence
of a good father of a family. (Art 1163)
• Deliver the fruits of the thing. (Art 1164)
• Deliver the accessions and accessories. (Art 1166)
• Deliver the thing itself.
• Answer for damages in case of non-fulfillment or breach.
(Art 1167)

23. DILIGENCE OF A GOOD FATHER OF A FAMILY
• A good father does not abandon his family, he is
always ready to provide for his family
• Ordinary care
• That diligence which an average person
exercises over his own property.

24. EXTRAORDINARY DILIGENCE
• If the law or the stipulation of the parties
provides for another standard of care, said
law or stipulation must prevail.

25. X binds himself to deliver a specific dog to Y on
September 30, 2023.
OBLIGATION TO GIVE A DETERMINATE THING

26. KINDS OF FRUITS:
OBLIGATION TO GIVE A DETERMINATE THING
• Natural Fruits - spontaneous products of the soil, and the
young and other products of animals
• Industrial Fruits - those produced by lands of any kind
through cultivation or labor
• Civil Fruits - those derived by virtue of a juridical relation

27. KINDS OF RIGHTS:
OBLIGATION TO GIVE A DETERMINATE THING
• Personal Rights - a right enforceable only against a
definite person or group of persons
• Real Rights - a right enforceable against the whole
world

28. NOTE: Ownerships is transferred by the delivery of the thing.
1) Actual Delivery - actual delivery of a thing from the hand of
the grantor to the hand of the grantee
2) Constructive Delivery - representative of symbolical in
essence and with intention to deliver the ownership.
OBLIGATION TO GIVE A DETERMINATE THING

29. A sells his Casio watch to B for P500.00 and agrees to deliver
the same on September 10, 2023.
1) What is the remedy of B if A refuses to deliver the watch to
B?
OBLIGATION TO GIVE A DETERMINATE THING

30. A agreed to deliver any watch worth P500.00 to B and that he
will deliver it on September 10, 2023.
1) If A refuses to deliver the watch to B, can B ask C to deliver
another watch worth P500.00?
OBLIGATION TO GIVE AN INDETERMINATE
THING

31. • Genus never perishes.
• Fortuitous event is any event which cannot be be
foreseen, or which though foreseen, is inevitable.
GENUS NUNQUAM PERIT

32. What are the remedies of a
creditor in real obligation?

33. IN SPECIFIC REAL OBLIGATIONS:
• Demand specific performance or fulfillment of the
obligation with a right to indemnity for damages
• Demand rescission or cancellation of the obligation with a
right to recover damages
• Demand payment of damages only, if feasible
REMEDIES OF CREDITOR IN REAL
OBLIGATION

34. Accessions are the fruits of a thing or additions to or
improvements upon a thing (principal).
Accessories are things joined to or included with the
principal things for the latter’s embellishment, better use or
completion.
ACCESSIONS VS ACCESSORIES

35. A binds himself to construct a dog cage for the pet of B. Based
on their agreement, the cage is intended for a pure bred
belgian mallinois and that cage should be painted red.
REMEDIES OF CREDITOR IN POSITIVE
PERSONAL OBLIGATION

36. • If the debtor fails to comply with his obligation to do, the
creditor has the right to have the obligation performed by
himself or by another, unless personal considerations are
involved, at the debtor’s expense.
• Creditor has also the right to recover damages.
REMEDIES OF CREDITOR IN POSITIVE
PERSONAL OBLIGATION

37. • In case the obligation is done in contravention of the terms
of the same or is poorly done, it may be ordered that it be
undone if possible.
REMEDIES OF CREDITOR IN POSITIVE
PERSONAL OBLIGATION

38. • Undo the thing plus damages
• If not possible to undo what was done, creditor can file an
action for damages.
REMEDIES OF CREDITOR IN NEGATIVE
PERSONAL OBLIGATION

39. What is delay?

40. • Ordinary delay - the failure to perform an obligation on
time.
• Legal delay/Default/Mora - the failure to perform an
obligation which failure constitutes a breach of the
obligation.
DELAY

41. • Mora Solvendi - delay on the part of the debtor to fulfill his
obligation
• Mora Accipiendi - delay on the part of the creditor to
accept the performance of the obligation
• Compensation Morae - delay on the part of both parties
DELAY

42. • A obliged himself to deliver to B a specific television on
September 15, 2023.
DELAY

43. When is demand not
necessary to put debtor in
delay?

44. • When the obligation so provides.
• When the law so provides.
• When time is of the essence.
• When demand would be useless.
• When there is performance by a party in reciprocal
obligations.
DELAY

45. What are the grounds for
liability which may entitle the
injured party for damages?

46. • Fraud (Deceit or Dolo) - the deliberate or intentional evasion
of the normal fulfillment of an obligation. It can either be
incidental fraud or causal fraud.
• Negligence (Fault or Culpa) - any voluntary act or omission,
there being no bad faith or malice, which prevents the normal
fulfillment of an obligation. It can either be contractual
negligence, civil negligence and criminal negligence.
ENTITLEMENT OF DAMAGES

47. 3. Delay (Mora)
4. Contravention of the terms of the obligation
ENTITLEMENT OF DAMAGES