LAW ON OBLIGATIONS

I.

DEFINITION
It is the juridical necessity to give, to do or not to do. (Art. 1156, NCC)

II. ELEMENTS OF AN OBLIGATION

1
2
3
4

Active subject (obligee or creditor);

Passive subject (obligor or debtor);
Object - the prestation or conduct required to be observed (to give, to do or not to do);
and
Juridical tie (vinculum juris) - the efficient cause between the two subjects by reason
of which the debtor is bound in favor of the creditor to perform the prestation.

III. DIFFERENT KINDS OF PRESTATIONS

Real if the prestation involved is that of giving or obligation to give.
Personal if the prestation involved is that of doing or not doing, i.e. obligation to do or not
to do.
IV. CLASSIFICATION OF OBLIGATIONS
a. As to judicial enforceability
1
2
3

Civil obligations which, if not fulfilled when it becomes due and demandable, may
be enforced in court through action;
Natural obligations which cannot be enforced by court action but are binding on
the party who makes them;
Moral obligations that arise from the moral law developed by the church and not
from positive law, and are not enforceable in court. Moral obligation of a person in
relation to his God or Church.
Mixed Obligation obligations that are in accordance with both natural and
positive law.

Natural Obligation v. Moral Obligation

Juridical tie

Legal effects

NATURAL OBLIGATION
Yes (except that the same is
rendered ineffective by some special
circumstance, such as prescription)
The law recognizes the following
legal effects:

MORAL OBLIGATION
No

If does not produce legal

effects.

If
the
natural
obligation
is
voluntarily performed, the creditor
is authorized to retain the payment
(Art. 1423, NCC); and

Negligence is

Vinculum juris

A natural obligation can be

guaranteed (Art. 2052, 2nd par., NCC)
Merely
incidental
to
the
performance of an already existing
obligation
Exists
independently
of
the
negligence

Substantive
independent

and

Is created by the negligence

itself

Good father of a
family
Presumption of
negligence

Is not a defense

Is complete and
defense (Art. 2180)

Yes

No

proper

b. As to the subject matter

1.
2.

Real obligation an obligation to give;

Personal obligation an obligation to do or not to do.

c. As to the number of persons bound to perform

Unilateral obligation an obligation where only one of the parties is
bound to fulfill a prestation;
2.
Bilateral obligation an obligation where both parties are bound to
perform a part in the obligation.
1.

a) Reciprocal;
b) Non Reciprocal where performance by one is non dependent upon the
performance of the other.)
d. As to the capability of fulfillment
Possible obligation an obligation that is capable of
accomplishment or fulfillment in nature or in law;
2.
Impossible obligation an obligation that is not capable of
accomplishment or fulfillment in nature or in law (Art. 1183)
1.

e. As to susceptibility of partial fulfillment

Divisible obligation - when the obligation is susceptible
of partial performance (Art. 1223; 1224);
2.
Indivisible obligation when the obligation is not
susceptible of partial performance. (Art. 1225)
1.

f.

As to their dependence upon one another

1. Principal obligation refer to the main obligation created by the parties;
2. Accessory obligation refers to the secondary obligation created to guarantee the
fulfillment of the principal obligation.

g. As to the existence of a burden or condition

Pure obligation an obligation which is not burdened with any condition or term.
It is immediately demandable (Art. 1179);
2. Conditional obligation an obligation which is subject to a condition. The
condition may be suspensive, wherein its accomplishment shall give rise to the
obligation; the condition may also be resolutory, wherein the fulfillment of the
condition terminates the obligation. (Art. 1181);
3. Obligation with a term an obligation that is subject to the fulfillment of an event
that will surely happen, although the date may not be known as of the moment. The
term may be suspensive (from a day certain), if the obligation becomes demandable
only after the expiration of the term. On the other hand, a term is resolutory (to a
day certain) if the obligation terminates upon the expiration of the term (Art. 1193).
1.

h. As to the nature of performance

1. Positive obligation when the debtor is obliged to give or do something in favor of
the creditor. (Art. 1167)
2. Negative obligation when the debtor is obliged not to do something, that is, he
must refrain from doing something. (Art. 1168)
i.

As to the nature of creation of the obligation

1. Legal obligation obligations imposed by law (Art. 1158);
2. Conventional obligation obligations established by the agreement of the parties
like contracts.

j.

As to the character of responsibility or liability

1. Joint obligation an obligation wherein each creditor shall be liable only for a part
of the whole liability and to each debtor belongs only a part of the correlative rights
(8 Marensa 194; Art. 1207);
2. Solidary obligation an obligation wherein the debtor is accountable for the whole
of the obligation without prejudice to his right to collect from his co-debtors the
latters shares in the obligation. (Art. 1207)

k. As to the grant of right to choose one prestation out of several, or to substitute

the first one.
1. Alternative obligation an obligation wherein the obligor may choose to completely
perform one out of the several prestations (Art. 1199)
2. Facultative obligation an obligation wherein only one prestation has been agreed
upon, but the obligor may render one in substitution of the first one (Art. 1206).
l.

As to the imposition of penalty

1. Simple obligation an obligation wherein no penalty is imposed for the violation of
its terms (Art. 1226;
2. Obligation with penalty an obligation that imposes a penalty for violation of its
terms (Art. 1226).