Obligations and contracts

I. Obligations A. Definition of Obligation Art. 1156. An obligation is a juridical

necessity to give, to do or not to do.
An obligation is a juridical relation whereby a person (called a creditor) may demand from
another (called the debtor) the observance of a determinate conduct, and, in case of
breach, may obtain satisfaction from the assets of the latter (Arias Ramos).

Four essential requisites of an obligation: JAPF

1. A juridical or legal tie
Which binds the parties to the obligation and which arise either from bilateral or
unilateral acts of persons.
2. An active subject
Known as the creditor or obligee, who can demand the fulfillment of the obligation
3. A passive subject
Known as the debtor or obligor, from whom the obligation is juridically demandable.
4. The fact, prestation or service
Which constitutes the object of the obligation.

Sources of obligation:
1.
2.
3.
4.
5.

LCQA/DQ- Art 1157, NCC

Law
Contracts
Quasi-contracts
Acts or omissions punished by law, Delicts
Quasi-delicts

Article 1164 (NCC)- the creditor acquires a right to the fruits of the thing from the moment
that the obligation to deliver such thing arises.

Personal right- to ask for the delivery

To give:
Different rights available to the creditor:
Determinate thing:
1. To compel specific performance
2. To recover damges in case of breach of the obligation.
Indeterminate thing:
1. To ask for performance of the obligation
2. To ask that the obligation be complied with at the expense of the debtor.
3. To recover damges in case of breach of obligation.
Different rights available to the debtor
Determinate thing
1.
2.
3.
4.

To
To
To
To

deliver the thing which he has obligated himself to give.

take care of the thing with proper diligence of a good father of a family.
delver all accessions and accessories
py damages in case of breach of the obligation.

Indeterminate thing:
1. To deliver a thing which must be neither of superior nor inferior quality.
2. To pay damages in case of breach of the obligation.

To do (Article 1167) Art. 1167. If a person obliged to do something fails to do it, the
same shall be executed at his cost. This same rule shall be observed if he does it in
contravention of the tenor of the obligation. Furthermore, it may be decreed that
what has been poorly done be undone.

Different acts or ommisions of the obligor or debtor which wil result in the breach of
the obligation for which he can be held liable for damages:
1.
2.
3.
4.

Default or mora
Fraud or dolo
Negligence or culpa
Contravention of the tenor of the obligation

Default- delay in the fulfillment of an obligation with respect to time.

Different kinds of default or mora:
1. Mora solvendi- delay of the debtor to perform his obligation, ex re to give , ex
persona-to do
2. Mora accipiendi delay of the creditor to accept the delivery of the thing
which is the object of the obligation.
3. Compensation morae- delay of the parties or obligors in reciprocal obligations
General Rule: Demand is necessary. (mora solvendi ex persona). Thus, no demand, no
delay.
Exceptions: (mora solvendi ex re) Article 1169
a. When the obligation or the law expressly so declares
Mere setting of due date is not enough. This does not constitute automatic delay.
There must be an express stipulation to the following effect: Non-performance on that
day is delay without need of demand. (Dela Rosa vs. BPI)
b. When it appears from the nature and circumstances of the obligation that time was a
controlling motive for the establishment of the contract.
Example: The wedding gown has to be ready before the wedding.
c. When demand would be useless, when obligor has rendered it beyond his power to
perform.