Chapter 1 – General Provisions
I. Definitions
1. Obligation – derived from the Latin word obligaito which means 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 – and this may consist
in giving a thing, doing a certain act, or not doing a certain act.
2. Quasi-Contract – when they arise from lawful, voluntary and unilateral
acts which are enforceable to the end that no one shall be unjustly
enriched or benefited at the expense of another.
3. Compliance in good faith – compliance or performance in accordance
with the stipulations or terms of the contract or agreement.
4. Wrong – (cause of action), according to its legal meaning, is an act or
omission of one party in violation of legal right or rights (i.e.,
recognized by law) of another.
5. Solutio indebiti – is 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.
II. Discussions
1. What are the essential requisites of an obligation?
a. Passive subject (called debtor or obligor) – the person who is bound
to the fulfillment of the obligation; he was a duty.
b. Active subject (called creditor or oblige) – the person who is entitled
to demand the fulfillment of the obligation; he who has a right.
c. Object or prestation (subject matter of the obligation) – the conduct
required to be observed by the debtor. It may consist in giving,
doing, or not doing. Without the prestation, there is nothing to
perform. In bilateral obligations, the parties are reciprocally debtors
and creditors.
d. Juridical or legal tie (also called efficient cause) – that which binds
or connects the parties to the obligation. The tie in an obligation
can easily be determined by knowing the source of the obligation.
2. Why are obligations under the Civil Code a juridical necessity? Explain.
Because it is based on law and subject to court`s action. Obligations
under civil code are a judicial necessity in order to enforce local laws
that involve civil matters. Civil matters include matters that are
brought on by another party that causes injury or financial discord
among people of a local jurisdiction.
3. What are the elements or requisites in order that a person may acquire
a right of action in court against another to enforce the performance of
the latter’s obligation?
Right is the power a person has under the law to demand from another
any prestation. A person may acquire a right of action in court to
enforce the performance of another’s obligation if the obligation is a
civil obligation, that is, it is based on positive law.
4. May a person incur obligations even without entering into any contract
or voluntary agreement? Explain.
Yes, because obligations do not only arise from contracts. They can be
imposed by law, arise from quasi-contracts, from crimes or acts or
omissions punished by law and from quasi-delicts or torts. You can
have an obligation so that no one will be unjustly benefited or enriched
at the expense of someone else, or if you commit a crime, or if you
cause damage due to fault or negligence.
Chapter II – Nature and Effect of Obligations
I. Definitions
1. Generic or indeterminate thing – when it refers only to a class or genus
to which it pertains and cannot be pointed out with particularity.
2. Personal right – is the right or power of a person (creditor) to demand
from another (debtor), as a definite passive subject, the fulfillment of
the latter’s obligation to give, to do, or not to do.
3. Legal delay or default – or mora is the failure to perform an obligation
on time which failure constitutes a breach of the obligations.
4. Fortuitous event – is any event which cannot be foreseen, or which,
though foreseen, is inevitable. Stated otherwise it is an event which is
either impossible to foresee or impossible to avoid.
5. Diligence of a good father of a family
II. Discussions
1. Give the rules as to the liability of a person for loss or damage
resulting from a fortuitous event.
2. What rights are given by law to the creditor in case the debtor fails to
comply with his obligation to deliver a specific thing?
3. What are included to be delivered in an obligation to give a definite
thing? Explain them.
4. Suppose the obligation of the debtor is to do something and he fails to
do it or performs it in contravention of the agreement, what are the
remedies available to the creditor?
5. Can a debtor be put in delay and consequently, incur liability even
without demand from creditor? Explain.
6. May an action arising from fraud be waived? Explain.
7. May an action arising from negligence be waived? Explain.