Obligations and Their Requisites

Article 1156: Obligations

• An obligation is a juridical necessity to give, to do, or not to do.
• It's derived from the Latin word obligatio, meaning tying or binding.
• Obligations involve a tie or bond that binds one party to another to render something. This can include giving a thing, performing an action, or refraining from an action.

Essential Requisites of an Obligation

• Passive Subject (Debtor/Obligor): The person bound to fulfill the obligation.
• Active Subject (Creditor/Obligee): The person entitled to demand fulfillment.
• Object/Prestation: The subject matter of the obligation. This can be giving, doing, or not doing.
• Juridical/Legal Tie: The efficient cause or the connection binding the parties to the obligation.

Article 1157: Sources of Obligations

• Law: Obligations imposed by law itself.
• Contracts: Obligations arising from agreements or stipulations between parties.
• Quasi-Contracts: Obligations based on a retroactive arrangement between parties lacking previous agreements.
• Quasi-delicts: Obligations arising from fault or negligence when no contractual relationship exists between parties.

Article 1158: Obligations from Law

• Obligations from law are not presumed.
• Examples include legal obligations, like a private school not being obligated to provide clothing allowances to teachers as there is no law specifying this.

Article 1159: Contractual Obligations

• Obligations from contracts have the force of law between parties.
• These obligations must be fulfilled in good faith.
• A contract acts as a meeting of minds between two persons where they are bound to give something or render services.

Article 1160: Quasi-Contracts

• Quasi-contracts result from lawful, voluntary, and unilateral acts creating a juridical relationship binding parties.
• No previous obligation exists between parties.
• Kinds of quasi-contracts:
  • Negotiorum gestio: Voluntary management of another's property/affairs without knowledge/consent.
  • Solutio indebiti: Something is received when there's no right to claim it, by mistake.

Article 1161: Obligations from Criminal Offenses

• Civil liabilities arising from criminal offenses are governed by penal laws.
• Scope of civil liability:
  • Restitution: Returning the stolen or damaged property.
  • Reparation: Payment for damages caused.
  • Indemnification: Payment for consequential damages.

Article 1162: Obligations from Quasi-Delicts

• Obligations from quasi-delicts (negligence and fault) are governed by special laws.
• Requisites of quasi-delicts:
  • An act or omission.
  • Fault or negligence.
  • Damage caused.
  • Direct relation/connection between act/omission and damage.
  • No pre-existing contractual relation.

Article 1163: Obligations to Deliver a Thing

• A person who is obligated to deliver a specific thing has a responsibility to take care of it with the prudence of a good father of a family.

Article 1164: Creditor's Right to Fruits

• The creditor is entitled to fruits (natural, industrial, civil) of the thing from the time the obligation to deliver it arises.

Article 1165: Remedies of Creditor in Real Obligations

• Specific real obligation: Demand specific performance, rescission or cancellation, or damages.
• Generic real obligation: Similar to specific obligations but less specific performance options; general types of obligations.

Article 1166: Delivery of Accessions and Accessories

• The obligation to deliver a determinate thing includes its accessions and accessories.

Article 1167: Obligations to Do

• If the obligor fails to do their obligation, the obligation will be executed at their expense.
• Remedies of Creditor: specific performance, damages, or forcing someone else to do the work.

Article 1168: Negative Obligations

• The obligor, if they do what they were obligated not to do, the corresponding act must be undone at their expense.

Article 1169: Delay (Mora)

• Delay occurs when the obligor fails to perform their obligation at the stipulated time.
• It can be ordinary (failure to perform at the agreed upon time) or legal (failure causing breach of contract).
• Requisites of delay for the debtor:
  • Obligation is demandable.
  • The debtor fails to perform.
  • Demand was made.

Article 1170: Liability for Damages

• The obligor is liable for damages through fraud, negligence, or delay.

Article 1171: Fraud

• Fraud is demandable and any waiver for future fraud are void.
• Obligations from fraud are demandable regardless of type.

Article 1172: Negligence

• Negligence in fulfilling obligations is also demandable.
• Waiver of action for future negligence is permitted unless the obligation requires extraordinary diligence.

Article 1173: Kinds of Negligence

• Contractual Negligence (culpa contractual): Negligence in contractual obligations.
• Civil Negligence (culpa aquiliana): Negligence that gives rise to civil obligations between parties with no pre-existing contract.
• Criminal Negligence (culpa criminal): Negligence resulting in criminal offenses.

Article 1174: Fortuitous Events

• A fortuitous event is an unexpected event that cannot be foreseen or is inevitable.
• A fortuitous event relieves the obligor of liability for non-performance.

Article 1175: Usurious Transactions

• Usurious transactions are prohibited by law.
• Charging excessively high interest rates is prohibited.

Article 1176: Presumptions

• Presumptions are inferences based on a fact that is known.
• Presumptions in obligations are used when there is no proof.

Article 1177: Creditor's Remedies

• Creditors can take actions to ensure they are paid, like going after assets or executing the contract.

Article 1178: Transmissibility of Rights

• Rights and obligations related to the obligation may be transferred, unless prohibited by law or contract.

Article 1179: Pure Obligations

• Pure obligations are immediately due and demandable, not dependent on any condition or period.

Article 1180: Obligations with a Period (Term)

• Obligations with a period are not considered conditional, but are due once the specified period arrives.

Article 1181 -1187: Conditional Obligations

• Suspensive condition: The obligation is effective (or not) based on a condition occurring (or not).
• Resolutory condition: The obligation is extinguished (or not) based on a condition occurring (or not).
• Kinds of conditions:
  • Potestative: Dependent on the will of one party.
  • Casual: Dependent on the chance of a third party.
  • Mixed: Dependent on the will of one party and events beyond that party.

Article 1188

• Creditors may take action to protect their interests before the happening of a condition.
• Debtors may recover funds paid in advance by mistake before a condition is met.

Article 1189: Loss or Deterioration of the Thing

• Loss or deterioration of an object without fault does not relieve the obligor from their obligation.
• Loss or deterioration with fault does have implications for liability.

Article 1190: Resolutory Condition

• When the condition is met, the obligation is immediately extinguished; effect is retroactive and covers all rights and duties created by the obligation since its inception.

Article 1191: Breach of Reciprocal Obligations

• If one party breaches a reciprocal obligation, the other party can choose to either compel performance or rescind the contract (with damages).
• If both parties breach, the court will consider circumstances to determine which party is primarily at fault and to distribute damages accordingly.

Article 1192: Multiple Breaches in Reciprocal Obligations

• When both parties breach a reciprocal obligation, the courts will consider the situation to equitably distribute the liability.