Oblicon Reviewer
Oblicon Reviewer
Oblicon Reviewer
Illustration
OBLIGATION A has a right of action, evidence by a promissory note, to collect P1M
A legal relation established between one person and another, from B, and such promissory note prescribes after the expiration of 10 years
whereby the latter is bound to the fulfillment of a prestation which from the time it accrues, although the latter is no longer bound to pay the
the former may demand of him (Manresa). obligation in accordance with the statute of limitations, he is still bound to
A juridical necessity to give, to do, or not to do (Art. 1156, CC). pay in accordance with equity and natural law (Agoncillo v Javier, 38 Phil.
424).
JURIDICAL NECESSITY
Obligation is a juridical necessity because in case of non- ELEMENTS OF OBLIGATION [PATO]
compliance, the courts of justice may be called upon to enforce its 1. Passive subject – Known as the obligor or debtor, against
fulfillment or, in default thereof, the economic value that it whom the obligation is juridically demandable; one who is
represents. In a proper case, the debtor may also be made liable for bound to perform a prestation;
damages, which represent the sum of money given as a compensation 2. Active subject – Known as the obligee or creditor, who can
for the injury or harm suffered by the creditor or obligee for the demand the fulfillment of the prestation; he who in his
violation of his rights. (PINEDA, 1). favor, the obligation is constituted or created;
3. Juridical tie or Vinculum Juris – Binds the parties to the
PRESTATION obligation, and which may arise from either bilateral or
Not the thing or object but the particular conduct of the debtor unilateral acts of persons; the efficient case which creates
which may consist in giving, doing, or not giving, or not doing the relation between the obligor/debtor and
something (TOLENTINO, 57). obligee/creditor and is established by:
a. Law;
REQUISITES OF PRESTATION [PE-CoLD] b. Bilateral acts (contracts and quasi-contracts);
1. Physically and juridically possible; c. Unilateral acts (Crimes and quasi-delicts).
2. Possible equivalent in money; 4. Prestation/Object of obligation – the particular conduct of
3. Must be within the commerce of man; the debtor which may consist in giving, doing, or not doing
4. Must be licit; something which constitutes the object of the obligation
5. Determinate or at least determinable according to pre-
established elements or criteria. NOTE: Object of Obligation (the prestation) is different from object
of prestation. The former is the conduct of the debtor as defined in
NOTE: Form is sometimes added as a sixth requisite of prestation Art. 1156; to give, to do or not to do. On the other hand, the latter is
but as a general rule however, it cannot be considered as essential. what constitutes the thing to give or the certain act to do or not to do
An obligation arising from law ccan be said to have no form at all (e.g., to give a specific horse, to paint the house, not to leave the country).
(TOLENTINO, 56-57).
NOTE: Subjects pertain to both natural and juridical persons. They
NOTE: Pecuniary interest need not be for the benefit of one of the need not be determined in the act constituting the obligation, but they
parties, it may be for the benefit of a third person. must be determinable in some manner. When either subject cannot
be determined, the obligatory tie can have no effect (TOLENTINO,
PECUNIARY INTEREST NEED NOT BE OF AN ECONOMIC 57).
CHARACTER
It is a generally established principle that the prestation should NOTE: The active subject may be temporarily indefinite, as the
be susceptible of pecuniary appreciation. However, it need not be of case of a negotiable instrument payable to bearer.
an economic character, even moral ones in view of the protection
given to them by law, have some pecuniary value (Id., 58). CLASSIFICATION OF OBLIGATIONS
1. Pure and Conditional (Arts. 1179-1192, CC);
KINDS OF PRESTATION a. Pure – demandable at once;
1. To give – obligation to deliver a movable or an immovable b. Conditional – fulfillment or extinguishment
thing in order to create a real right, or for the use of the depends upon a future and uncertain event.
recipient or for its simple possession, or in order to return 2. With period or term (Arts. 1193-1198, CC);
to its owner (e.g., sale, deposit, pledge, donation); Its fulfillment or extinguishment depends upon a
2. To do – covers all kinds of works or services whether future and certain event.
physical or mental. It may involve some work on the part 3. Alternative and Facultative (Arts. 1199-1206, CC);
of the debtor such as in contracts of employment, or a. Alternative – involves multiple prestations but
professional services, but in other cases, it may be merely debtor will only perform one or some but not all,
the necessity of concluding a juridical operation, such as, depending whose choice it is;
when a person promises to give a bond; b. Facultative – multiple prestations with a
3. Not to do – consists in abstaining from doing some act. principal obligation and substitute prestations
This obligation includes the obligation “not to give” (Id.). choice is generally given to the obligor.
4. Joint and Solidary (Arts. 1207-1222, CC);
TYPES OF OBLIGATION a. Joint – each can be made to pay only his share in
CIVIL OBLIGATION NATURAL OBLIGATION the obligation;
It is one which has a binding It is one which cannot be b. Solidary – one can be made to pay for the whole
force in law, and which gives to enforced by action, but which is obligation subject to reimbursement.
the obligee or creditor the right binding on the party who makes 5. Divisible and Indivisible (Arts. 1223-1225, CC);
of enforcing it against the obligor it in conscience and according to Performance of the prestation, not to thing, whether it
or debtor in a court of justice; the natural law. A natural can be fulfilled in parts or not
obligation still subsist although 6. With Penal Clause (Arts. 1230, CC).
the civil obligation is Accessory undertaking to assume greater liability in
extinguished in accordance with case of breach (JURADO, 3-4).
the statute of limitations;
FAULT OR NEGLIGENCE
QUASI-DELICTS (CULPA AQUILIANA)
It is the failure to observe that degree of care, precaution, and
It is an act or omission by a person which causes damage to
vigilance which the circumstances justly demand (PNR v CA, GR No.
another in his person, property, or rights giving rise to an obligation
157658).
to pay for the damage done, there being fault or negligence but there
It is the omission of that diligence which is required by the
is no pre-existing contractual relation between the parties (see Art.
nature of the obligation and corresponds with the circumstances of
2176).
the persons, of the time and of the place (see Art. 1173, CC).
NOTE: Art. 2176, CC, where it refers to fault or negligence, covers
TEST OF NEGLIGENCE
not only acts not punished by law but also acts criminal in character,
Would a prudent man, in the position of the person to whom
whether intentional or voluntary or negligent (Elcano v Hill, GR No. L-
negligence is attributed, foresee harm to the person injured as a
24303 [26/05/1977]).
reasonable consequence of the course about to be pursued? If so, the
law imposes a duty upon him to refrain from that course or take
KINDS OF NEGLIGENCE
1. Culpa Aquiliana – quasi-delict; negligence as a source of
obligation;
2. Culpa Contractual – negligence in the performance of a
contract;
3. Culpa criminal – criminal negligence
CULPA CULPA
CULPA CRIMINAL
AQUILIANA CONTRACTUAL
As to Negligence
Negligence is Negligence is merely Negligence is direct,
substantive and incidental to the substantive and
independent; performance of an independent of a
obligation already contract;
existing because of a
contract.
4. When demand would be useless (Art. 1169, CC): NOTE: A mere reminder cannot be considered a demand for
a. Caused by some act or fault of the debtor; performance, because it must appear that the tolerance or
b. Impossibility cause by fortuitous event. benevolence of the creditor must have ended. Commencement of a
suit is sufficient demand (TOLENTINO, 102).
Illustration:
If A has promised to deliver his automobile to B on 1 Jan WHEN DEMAND IS MADE
2019, but a few days before such date, the automobile was If extra-judicial, date of demand and if judicial, date of filing of
completely destroyed through his fault, and the fact of its complaint (Id., 103). Commencement of a suit is sufficient demand
destruction was known to B, demand by the latter would be (Palmares v CA, GR No. 126490 [31/03/98]).
useless
NOTE: There is no mora solvendi in negative obligations – one
5. When the obligor has expressly acknowledged that he cannot be late in not doing or giving something (PARAS, 125).
really is in default, but it should be noted that his mere Moreover, there is no mora solvendi in natural obligations (Id.).
asking for extension of time is not an express
acknowledgement of the existence of default of his part EFFECTS OF MORAL SOLVENDI
(PARAS, 124). 1. Debtor is guilty of breach (Art. 1170, CC);
2. Liable for interest in case of obligations to pay money (Art.
JUDICIAL DEMAND 2209, CC) or to pay for damages (Art. 1170, CC);
If the creditor files a complaint against the debtor for the 3. Liable even for a fortuitous event when the obligation is to
fulfillment of the obligation. deliver a determinate thing (Art. 1165, par. 3). HOWEVER:
when the debtor proved that the loss would have resulted
EXTRAJUDICIAL DEMAND just the same even if he had not been in default, the court
If the creditor demands from the debtor the fulfillment of the may equitably mitigate the damage (PINEDA, 47).
obligation either orally or in writing.
DELAY FOR GENERIC THINGS
PURPOSE OF DEMAND For generic things, debtor may still be compelled to deliver a
For the presumption of good faith. thing of the same kind (Art. 1163, CC), or be held liable for damages
(Lee v De Guzman, Jr., GR No. 90926 [06/06/90]).
REASON One can never be late in not giving or doing
something (DE LEON, 42). B.) MORA ACCIPIENDI
The delay on the part of the creditor to accept the performance
Illustration: of the obligation (DE LEON, 42).
On 1 Jan 2014, A borrowed P10,000 from B evidenced by a promissory
note whereby he undertook to pay the indebtedness on 1 Jan 2016. On 1 June
NOTE: Read in relation to Arts. 1252-1261, CC (Tender of Payment
2017, B brought an action against A for the payment of the obligation as
and Consignation).
well as legal interest from the date of maturity by way of damages. There is
no evidence that any demand for payment was ever made prior to the
REQUISITES
presentation of the complaint. From what time shall the legal interest be
1. Offer of performance by the debtor who has the required
computed — shall it be computed from 1 Jan 2016, when the obligation
capacity;
became due and demandable, or from 1 June 2017, when the complaint was fi
led? According to the decided cases, the interest shall be computed from 1 2. Offer must be to comply with the prestation, as it should be
June 2017, when the complaint was filed, because it was only then that the performed;
debtor had incurred in delay. 3. Creditor refuses the performance without just cause
(TOLENTINO, 108).
CESSATION OF THE EFFECTS OF DELAY (MORA)
The benefits arising from default or delay may cease upon NOTE: If an obligation arises ex delicto, the debtor-criminal is
1. Renunciation by the creditor; responsible for loss, even though this be through a fortuitous event,
2. Prescription. unless the creditor is in mora accipiendi (PARAS, 126; see also Art. 1268, CC).
GRACE PERIOD Q: What should the debtor do if the creditor refuses without just
A grace period is whereby the buyer was given an additional cause to accept the performance of the obligation?
period within which to complete payment of the purchase price as a
matter of equity and justice (Taguba v Vda. de De Leon, 132 SCRA 722 A: 1.) Consign it to court, expenses chargeable to creditor (Arts.
1252-1261);
4.) CONTRAVENTION OF TENOR NOTE It is based on the doctrine of volenti non fit injuria (no
Includes not only any illicit act which impairs the strict and wrong is done to one who consents).
faithful fulfillment of the obligation, but also every kind of defective
performance, unless excused in proper cases for fortuitous event. 4. When the object of the obligation is lost due partly to the
fault of the debtor;
THE FOLLOWING DO NOT EXCUSE FULFILLMENT 5. When the object of the obligation is lost after the debtor has
1. Increase in cost of performance; incurred in delay;
2. Poverty; 6. When the debtor promised to deliver the same thing to two
3. War. or more persons who do not have the same interest; when
the obligation to deliver arises from a criminal offense;
7. When the obligation is generic.
ART. 1174
Except in cases expressly specified by the law, or when it is NOTE There must be NO concurrent or previous negligence or
otherwise declared by stipulation, or when the nature of the imprudence on the part of the obligor by which the loss or injury may
obligation requires the assumption or risk, no person shall be have been occasioned, otherwise the defense of fortuitous event
responsible for those events which, could not be foreseen, or which cannot be invoked.
foreseen, were inevitable. There should have been no human participation amounting to a
negligent act in order to be exempt from liability arising from a
FORTUITOUS EVENTS fortuitous event.
An extraordinary event which could not be foreseen, or which
though foresee, was inevitable (Art. 1174). It is an event which is EFFECTS OF FORTUITOUS EVENT
either impossible to foresee or impossible to avoid. 1. On determinate obligation – the obligation is extinguished
(see Art. 1174);
KINDS OF FORTUITOUS EVENTS 2. On generic obligation – the obligation is not extinguished,
1. Fortuitous event proper – an event which is absolutely genus nunquam peruit (see Art. 1263).
independent of human intervention;
2. Force majeure (fuerza mayor) – an event which arises from EFFECTS OF FORTUITOUS EVENT ON PERIOD PROVIDED
legitimate or illegitimate acts of persons other than the The period of time when the contract was suspended due to
obligor; fortuitous event cannot be deducted from the term of the contract.
3. Ordinary fortuitous event – an event which usually happens
or which could have been reasonably foreseen; REASON To do so would in effect be an extension of the
4. Extraordinary fortuitous event – an event which does not contract.
usually happen and which could not have been reasonably
Illustration:
foresee.
A received from B a pendant with diamonds valued at P500,000 to be
sold on commission basis or to be returned on demand. In the evening of Feb.
REQUISITES OF FORTUITOUS EVENT [IF - ASO]
1, 2018, while walking home to her residence, two men snatched her purse
1. The event must be independent of the human will or at
containing the pendant and ran away. Subsequently, the snatchers were
least of the obligor’s will;
apprehended and charged. During the pendency of the criminal case, B
2. The event could not be foreseen (unforeseeable or
brought an action against A for recovery of the pendant or of its value and
inevitable), or must have been impossible to avoid damages. The latter interposed the defense of fortuitous event, but the former
(unavoidable); contends: (a) that the defense of fortuitous event is untenable because there
3. The event must be of such a character as to render it was negligence on the part of the defendant; and (b) that if the defense is
impossible for the obligor to comply with his obligation in tenable, nevertheless, there must be a prior conviction for robbery before it
a normal manner; can be availed of.
4. The obligor must be free from any participation in, or the All the requisites of a fortuitous event are present in this case. It is
aggravation of the injury to the obligee. undeniable that in order to completely exonerate the debtor by reason of a
fortuitous event, such debtor must, in addition to the casus itself, be free of
NOTE It must not only be the proximate cause but it must be the any concurrent or contributory fault or negligence.
only and sole cause. If the negligence was the proximate cause, the
obligation is not extinguished but rather, it is converted into a
monetary obligation for damages. ART. 1175
Usurious transactions shall be governed by special laws.
NOTE Where the accident is due to a defect of an equipment or of
an appliance purchased from a manufacturer, it is not considered
USURY
fortuitous event within the meaning of the law.
It is the contracting for or receiving something in excess of the
amount allowed by law for the loan or forbearance of money, goods
NOTE Contributory negligence of the debtor renders him liable
or chattels.
despite the fortuitous event; courts may equitably mitigate damages.
It is the taking of more interest for the use of money, goods or
EFFECT UPON OBLIGATION chattels or credit than the law allows.
GENERAL RULE
INTEREST