Note: In order to be valid, the object must be:
1. licit or lawful;
2. possible, physically & judicially;
3. determinate or determinable; and 4. pecuniary value or possible equivalent
in money.
Note: Absence of either of the first three (licit, possible and/or determinate) makes the object void.
Form is not generally considered essential, though sometimes it is added as the 5threquisite.There is no particular form to make obligations binding, except in certain rare cases. (Tolentino, Civil Code of the Philippines, Vol. IV, 2002 ed. p. 57)
III. DIFFERENT KINDS OF PRESTATION Q: What are the different kinds of prestation?
Note: It is the conduct that must be observed by the debtor/obligor. (Pineda, Obligations and Contracts, p.
2, 2000)
Q: What are the requisites of a valid prestation?
A:
1. Possible, physically and juridically;
2. Determinate, or at least determinable according to pre-established elements or criteria; and
3. Has a possible equivalent in money (Tolentino, Civil Code Vol. IV, p. 58, 1999 ed).
IV. CLASSIFICATION OF OBLIGATIONS Q: What are the kinds of obligation?
A: From the viewpoint of:
1. Sanction
a. Civil – gives a right of action to compel their performance
b. Natural – not based on positive law but on equity and natural law; does 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/ rendered by reason thereof.
c. Moral – cannot be enforced by action but are binding on the party who makes it in conscience and natural law.
2. Performance
a. Positive – to give; to do b. Negative – not to do 3. Subject matter
a. Personal – to do; not to do b. Real – to give
4. Object
a. Determinate/specific – particularly designated or physically segregated from all others of the same class.
b. Generic– is designated merely by its class or genus.
c. Limited generic– generic objects confined to a particular class (e.g. an obligation to deliver one of my horses) (Tolentino, Civil Code of the Philippines, Vol. IV, 2002 ed, p. 91) 5. Person obliged
a. Unilateral – only one party is bound b. Bilateral – both parties are bound
6. Creation
a. Legal – imposed by law (Art. 1158) b. Conventional – established by the
agreement of the parties like contracts
7. Susceptibility of partial fulfillment a. Divisible – obligation is susceptible of
partial performance (Art. 1223;
1224)
b. Indivisible – obligation is not susceptible of partial performance (Art. 1225)
8. Existence of burden or condition
a. Pure – is not burdened with any condition or term. It is immediately demandable (Art. 1179)
b. Conditional – is subject to a condition which may be suspensive (happening of which shall give rise to the obligation) or resolutory (happening of which terminates the obligation). (Art. 1181)
9. Character of responsibility or liability a. Joint – each debtor is liable only for a
part of the whole liability and to each creditor shall belong only a part of the correlative rights (8 Manresa 194; Art. 1207)
b. Solidary – a debtor is answerable for the whole of the obligation without prejudice to his right to collect from his co-debtors the latter’s shares in the obligation (Art. 1207)
10. Right to choose and substitution
a. Alternative – obligor may choose to completely perform one out of the several prestations (Art. 1199) b. Facultative – only one prestation has
been agreed upon, but the obligor may render one in substitution of the first one (Art. 1206)
11. Imposition of penalty
a. Simple – there is no penalty imposed for violation of the terms thereof (Art. 1226)
b. Obligation with penalty – obligation which imposes a penalty for violation of the terms thereof (Art. 1226;
Pineda, Obligations and Contracts, 2000 ed, p. 5-7)
V. SOURCES OF OBLIGATIONS A. SOURCES OF OBLIGATIONS Q: What are the sources of obligations? Distinguish.
A: LCQ-DQ
Sources Obligations Perfection
Law ex lege From the time designated by the law creating or regulating them.
Contracts ex contractu
GR: From the time of the perfection of the contract (i.e. meeting of the minds)
XPNs:
1. When the parties made stipulation on the right of the creditor to the fruits of the thing
2. When the obligation is subject to a suspensive condition or period;
arises upon fulfillment of the condition or expiration of the period.
Quasi-contracts ex quasi-contractu
From the time designated by the law creating or regulating them.
Delicts ex maleficio or ex delicto
Quasi-delict
ex quasi maleficio or ex quasi- delicto
Note: No obligation exists if its source is not one of those enumerated in Article 1157. (Navales v. Rias, 8 Phil. 508)
1. OBLIGATION EX LEGE
Q: Are obligations derived from law presumed?
A: No. Obligations derived from law are not presumed. Only those expressly determined in the 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 Book IV of NCC. (Art.
1158)
Note: If there is conflict between the NCC and a special law, the latter prevails unless the contrary has been expressly stipulated in the NCC. (Art. 18, Paras, Civil Code of the Philippines Annotated, Vol. IV, 2008 ed., p.
86)
Q: What are the characteristics of a legal obligation or an obligation ex lege?
A:
1. Does not need the consent of the obligor;
2. Must be expressly set forth in the law creating it and not merely presumed; and
3. In order that the law may be a source of obligation, it should be the creator of the obligation itself. (Art. 1158)
2. OBLIGATION EX CONTRACTU
Q: Do obligations arising from contracts have the force of law between the parties?
A: Yes. Obligations arising from contracts have the force of law between the parties and should be complied with in good faith. (Art. 1159)
Q: What are the requisites for a contract to give rise to obligations ex contractu?
A:
1. It must contain all the essential requisites of a contract; (Art. 1318) and
2. It must not be contrary to law, morals, good customs, public order, and public policy. (Art. 1306)
Q: What is “compliance in good faith”?
A: It is performance in accordance with the stipulation, clauses, terms and conditions of the contract. (Pineda, Obligations and Contracts, 2000 ed., p. 12)
Note: The contract is the “law” between the parties.
(Art. 1159)
Q: May a party unilaterally evade his obligation in the contract?
A: GR: Neither party may unilaterally evade his obligation in the contract.
XPNs: Unilateral evasion is allowed when the:
1. contract authorizes such evasion
2. other party assents thereto
Q: What governs obligations arising from contracts?
A: GR: These obligations shall be governed primarily by the stipulations, clauses, terms and conditions of the parties’ agreements.
XPN: Contracts with prestations that are unconscionable or unreasonable. (Pineda, Obligations and Contracts, 2000 ed., p. 12-13)
3. OBLIGATION EX QUASI - CONTRACTU
Q: What is quasi-contract?
A: It is a juridical relation arising from lawful, voluntary and unilateral acts based on the principle that no one shall be unjustly enriched or benefited at the expense of another. (Art. 2142)
Q: What are the characteristics of a quasi-contract?
A:
1. It must be lawful.
2. It must be voluntary.
3. It must be unilateral. (Pineda, Obligations and Contracts, p.14, 2000)
Q: What is presumptive consent?
A: Since a quasi-contract is a unilateral contract created by the sole act or acts of the gestor, there is no express consent given by the other party. The consent needed in a contract is provided by law through presumption. (Pineda, Obligations and Contracts, p. 15, 2000)
Q: What are the principal forms of quasi-contracts?
A:
1. Negotiorium gestio (inofficious manager) – arises when a person voluntarily takes charge of the management of the business or property of another without any power from the latter. (Art. 2144)
2. Solutio indebiti (unjust enrichment)–takes place when a person received something from another without any right to demand for it, and the thing was unduly delivered to him through mistake. (Art. 2154)
Note: The delivery must not be through liberality or some other cause.
4. OBLIGATIONS EX DELICTO Q: What is delict?
A: It is an act or omission punished by law.
Q: What is the basis for civil liability arising from delicts as according to the penal code?
A: Art. 100 of the Revised Penal Code provides that:
“Every person criminally liable for a felony is also civilly liable.”
A crime has dual character: (1) as an offense against the state because of the disturbance of the social order; and (2) an offense against the private person injured unless it involves the crime of treason, rebellion, espionage, contempt and others wherein no civil liability arises on the part of the offender either because there are no damages to be compensated or there is no private person injured by the crime. (Reyes, The Revised Penal Code, Criminal Law, Book One, 2008, ed., p. 875)
Q: What is the scope of civil liability?
A: RRI
1. Restitution;
2. Reparation for damage caused; and 3. Indemnity for consequential damages.
(Art. 104, RPC)
Q: Is civil action implicitly instituted in criminal case?
A: GR: Yes. When a criminal action is instituted, the civil action for the recovery of the civil liability arising from the offense charged shall be deemed instituted with the criminal action. (Rule 111, Sec.
1, Rules of Court)
XPNs: No. When the offended party:
1. Waives the civil action
2. Reserves the right to institute it separately
3. Institutes the civil action prior to the criminal action. (Rule 111, Sec. 1, Rules of Court)
Q: What is the effect of acquittal in criminal case?
A: GR: The acquittal of the accused in criminal case on ground of reasonable doubt does not preclude the filing of a subsequent civil action and only preponderance of evidence is required to prove the case.
XPN: When the acquittal is based on the reason arise did not exist. (Art. 29)
5. OBLIGATIONS EX QUASI – DELICTO
Q: What is quasi-delict or tort?
A: It is an act or omission arising from fault or negligence which causes damage to another, there being no pre-existing contractual relations between the parties. (Art. 2176)
Q: What are the elements of a quasi-delict?
A: NDCN
1. Negligent or wrongful act or omission;
2. Damage or injury caused to another;
3. Causal relation between such negligence or fault and damage;
4. No pre-exisitng contractual relationship between the parties (Article 2176).
B. NATURAL OBLIGATIONS Q: What are natural obligations?
A: Natural obligation, not being 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 the retention of what has been delivered or rendered by reason thereof. (Art. 1423 )
Note: They are real obligations to which the law denies an action, but which the debtor may perform voluntarily.
Q: What are the conditions for natural obligations to arise?
A:
1. The obligation is not prohibited by law or contrary to morals and good customs.
2. There must be a previous juridical relationship between two persons but due to certain intervening circumstances, it lost its legal enforceability leaving its fulfillment entirely to the free will or discretion of the supposed debtor. (Pineda, Obligations and Contracts, 2000 ed, p. 633)
Q: Distinguish natural obligation from civil obligation.
A:
NATURAL OBLIGATION CIVIL OBLIGATION