Obligations : Definition and Sources

Question 1

What is an obligation according to the Civil Code?

Answer 1

Article 1156 provides that, ‘An obligation is the juridical necessity to give, to do or not to do.’

Question 2

What does juridical necessity of an obligation mean?

Answer 2

It means in case of non-compliance, the courts of justice may be called upon to enforce its fulfillment or, in default thereof, the economic value that it represents.

Question 3

What are the requisites of Obligation?

Answer 3

1. Juridical/Legal Tie –vinculum juris, efficient cause arising from bilateral and unilateral acts of persons(various sources-see Art. 1157)
2. Active subject (the obligee/creditor) who can demand the fulfillment of an obligation
3. Passive subject(obligor/debtor) against whom the obligation is demandable
4. Prestation or service which is the object of obligation

Question 4

Identify the requisites of an obligation in the scenario below:
Under a building contract, X bound himself to construct a house for Y for P1,000,000.00.

Answer 4

Here, X is the passive subject, Y is the active subject, the building of the house is the object or prestation, and the agreement or contract, which is the source of the obligation, is the juridical tie.
Suppose X had already constructed the house and it was the agreement that Y would pay X after the construction is finished. X, then, becomes the active subject and Y, the passive subject.

Question 5

What are the sources of an obligation?

Answer 5

Article 1157 states that the sources of obligation are:

1. Law
2. Contract
3. Quasi-Contract
4. Delict
5. Quasi-Delict

Question 6

Where does obligations generally emanate from?Where do Contract, Quasi-Contract, Delict and Quasi-Delict come from?

Answer 6

Generally obligations emanate from law.Contract, Quasi-Contract, Delict and Quasi-Delict come from Private Acts.

Question 7

What are the sources of private acts?

Answer 7

Contracts are from bilateral acts, while Quasi-Contract, Delict and Quasi-Delict come from unilateral acts; whereas quasi contract emanate from lawful acts while delicts and quasi delicts emanate from unlawful acts.

Question 8

Describe obligations arising from law.

Answer 8

Obligations arising from laws are not presumed.(1158)

Question 9

Which obligations are demandable?

Answer 9

Only those arising from this code or special laws are demandable-governed and regulated by laws creating them.(1158)

Question 10

What does Article 1158 provides?

Answer 10

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.

Question 11

Define the Obligatory force of Contracts

Answer 11

Article 1159 provides that obligations arising from contract have the force of law binding before the contracting parties and should be complied with in good faith.

Question 12

What does Article 1159 provide?

Answer 12

Obligations arising from contracts have the

force of law between the contracting parties and should be complied with in good faith.

Question 13

What governs an obligation arising from quasi-contract?

Answer 13

Article 1160 provides that Obligations derived from quasi-contracts shall be subject to the provisions of Chapter 1, Title XVII, of this Book?

Question 14

What is a quasi-contract?

Answer 14

Article 2142 of the New Civil Code provides that Quasi Contract is a juridical relation arising from lawful, unilateral and voluntary acts (Article 22)to the end that no one shall be unjustly enriched or benefited at the expense of another.

Question 15

How is quasi contract different from implied contract?

Answer 15

1. An implied contract requires consent of the parties, quasi-contract is a unilateral act.
2. An implied contract is based on the will of the parties while quasi- contract is to the end that no one shall be unjustly enriched or benefited at the expense of another.

Question 16

What are the two most famous forms of quasi contracts?

Answer 16

The two most famous forms of quasi contracts are

1. negotiorum gestio
2. solutio indebiti

Question 17

What does negotiorum gestio mean?

Answer 17

It means Unauthorized Management

Question 18

What are the requisites of negotiorum gestio?

Answer 18

(Article 2144)
G-estator or Officious manager who voluntarily assumes the management or agency of the business or property of another.
A-bandoned or neglected (1)
N-o authorization from the owner expressed or implied
G-ood faith (2)

Question 19

What does solutio indebiti mean?

Answer 19

It means undue payment

Question 20

What are the requisites of solutio indebiti?

Answer 20

(Article 2154)

1. No binding relation between the payor and the one who took the payment
2. Payment made by mistake