CIVIL CODE OF THE PHILIPPINES

product of the codification of private law in the Philippines

the general law that governs family and property relations

enacted in 1950 & remains in force to date despite some significant

amendments

among the most widely studied and commented upon laws in the

Philippines due to its extensive coverage and impact

4 BOOKS:

1. Persons2. Property, Ownership, and Its Modifications3. Different Modes of Acquiring Ownership4. Obligations and Contracts

ARTICLE 1156. An obligation is a juridical necessity

to give, to do or not to do. (n)

OBLIGATION L. “obligatio” (tying or binding)

It is a tie or bond recognized by law by virtue of which one is bound in favor of

another to render something.

giving a thing

doing certain act

not doing a certain act

WHY A JURIDICAL NECESSITY?

An obligation is a juridical necessity because in case of noncompliance, the

courts of justice may be called upon by the aggrieved party to enforce its

fulfillment or, in default thereof, the economic value it represents.

NATURE OF OBLIGATIONS

1. CIVIL OBLIGATIONS

An obligation, if not fulfilled when it

becomes due and demandable, may

be enforced in court through action;

based on law.

2. NATURAL or MORAL

OBLIGATIONS

A special kind of obligation which

cannot be enforced in court but

which authorizes the retention of the

voluntary payment or performance

made by the debtor; based on equity

and natural law.

ESSENTIAL REQUISITES OR ELEMENTS OF OBLIGATION

1. ACTIVE SUBJECT (CREDITOR or OBLIGEE)

the person who is demanding the performance of the obligation;

he who has a right

2. PASSIVE SUBJECT (DEBTOR or OBLIGOR)

the one bound to perform the prestation or to fulfill the obligation or duty;

he who has a duty

3. OBJECT or PRESTATION (SUBJECT MATTER)

the conduct required to be observed by the debtor;

to give, to do, or not to do

4. JURIDICAL or LEGAL TIE (EFFICIENT CAUSE)

that which binds the parties to the obligation; source of the obligation

PRESTATIONS

1. TO GIVE

delivery of a thing to the creditor (in

sale, deposit, pledge, donation)

2. TO DO

covers all kinds of works or services

(contract for professional services)

3. NOT TO DO

consists of refraining from doing some

acts (in following rules and regulations)

EXAMPLE:

Under a building contract, Mr. Prilles bound himself to build a house for Mr.

Bautista for P1,000,000.00.

Mr. Prilles Mr. Bautista building of thehouse

agreement orcontract

PASSIVE SUBJECT ACTIVE SUBJECT PRESTATION JURIDICAL TIE

FORMS OF OBLIGATION

refers to the manner in which an obligation is manifested or incurred. It may be

any of the following:

oral

in writing

partly oral

partly in writing

OBLIGATION vs RIGHT vs WRONG

Obligation is the act or performance which the law will enforce.

Right is the power of the person to demand from another.

Wrong is an act or omission of one party in violation of legal right(s) of another.

Injury is the wrongful violation of the legal rights of another.

Damage is the result of injury (e.g. loss, hurt, harm).

KINDS OF OBLIGATION

1. REAL OBLIGATION

obligation to give

Example: Mr. Aureus (seller) binds himself to deliver a piano to Ms. Alayan(buyer).

2. PERSONAL OBLIGATION

POSITIVE PERSONAL OBLIGATION

obligation to do

Example: Mr. Aureus binds himself to repair the piano of Ms. Alayan.

NEGATIVE PERSONAL OBLIGATION

obligation not to do (naturally includes “not to give”)

Example: Ms. Alayan obliges Mr. Aureus not to tell anyone that she’s the one who broke the piano.

ARTICLE 1157. Obligations arises from: (1) law; (2)

contracts; (3) quasi-contracts; (4) acts or omissions

punished by law; and (5) quasi-delicts. (1089a)

SOURCES OF OBLIGATIONS

1. LAW – imposed by law itself

Example: obligation to pay taxes, obligation to support’s one family (Art. 291)

2. CONTRACTS – arise from the stipulation of the parties: meeting of the

minds or formal agreement (Arts. 1305-1306)

Example: obligation to repay a loan by virtue of an agreement

3. QUASI-CONTRACTS – arise from lawful, voluntary and unilateral acts

and which are enforceable to the end that no one shall be unjustly

enriched or benefited at the expense of another (Art. 2142)

Example: obligation to return money paid by mistake or which is not due (Art. 2154)

4. CRIMES OR ACTS OR OMISSIONS PUNISHABLE BY LAW – arise

from civil liability which is the consequence of a criminal offense (Art.

1161)

Example: obligation of the thief to return the car stolen by him; the duty of the killer to indemnify the heirs of his victim

5. QUASI-DELICTS OR TORTS – arise from damage caused to another

through an act or omission, there being fault or negligence, but no

contractual relation exists between the parties (Art. 2176)

Example: obligation of the possessor of an animal to pay for the damage which it may have caused (Art. 2183)

CLASSIFICATION OF SOURCES

1. emanating from LAW

2. emanating from PRIVATE ACTS

a. arising from licit acts (contracts and quasi-delicts)

b. arising from illicit acts (punishable or not punishable)

1. LAW

because obligations arising

from quasi-contracts, delicts

and quasi-delicts are really

imposed by law

2. CONTRACTS

SOURCES OF OBLIGATIONS

ARTICLE 1158. Obligations 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. (1090)

This article refers to legal obligation

or legal obligations arising from law. “believe something to be true”

To be demandable,

they must be clearly set

forth in the law, that is, the

Civil Code or special laws.

SPECIAL LAWS refer to all other laws not

contained in the Civil Code.

Corporation Code, Negotiable Instruments Law,

Insurance Code, National Internal Revenue Code,

Revised Penal Code, Labor Code, etc.

EXAMPLE:

A private school has no legal obligation to provide clothing allowance to its

teachers because no law which imposes this obligation upon schools.

But a person who wins money in gambling has the duty to return his

winnings to the loser.

ARTICLE 2014

No action can be maintained by the winner for the collection of what he

has won in a game of chance. But any loser in a game of chance may

recover his loss from the winner, with legal interest from the time he

paid the amount lost, and subsidiary from the operator or manager of

the gambling house. (1799a)

ARTICLE 1159. Obligations arising from contracts

have the force of law between the contracting parties

and should be complied with in good faith. (1091a)

CONTRACTUAL OBLIGATIONSare obligations arising from contracts or voluntary agreements.

WHAT IS A CONTRACT?

ARTICLE 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. (1254a)

REQUIREMENTS OF A VALID CONTRACT

All essential elements of a contract must be present. (Art. 1318)

It is not contrary to law, morals, good customs, public order and public

policy. (Art. 1306)

COMPLIANCE IN GOOD FAITH

means compliance or performance in accordance with the stipulations or

terms of the contract or agreement.

~END