168) [21 [31 Part One: OBLIGATION DEFINITION AND SOURCES Definition: Obligation is the juridical necessity to give to do or not to do.’ It is also defined as a juridical relation whereby person (creditor) may demand from another (debtor) the observance of a determinate conduct, and in case of breach, may obtain satisfaction from the assets of the latter Essential Elements of Obligation: 1, Juridical tie or vinculum juris — the efficient cause established by the various sources of obligations (law, contracts, quasi-contracts, delicts and quasi-delicts), 2. Object — the prestation or the particular conduct required to be observed by the debtor (to give, to do or not to do); 3. Active subject (called the obligee or creditor) — the person who can demand the fulfillment of the obligation; and 4. Passive subject (called the obligor or debtor) — the person from whom the obligation is juridically demandable.* NOTE: Every obligation has two aspects, From the standpoint of the active subject, the obligation is a right. However, from the standpoint of the passive subject, it is a debt. ‘Sources of Obligations:* 1. Law 2. Contract ‘Art. 1366, NCC. “Makati Stock Exchange, Inc. v. Campos, G:R. No. 138814, April 16, 2009. *Ang Yu Asuncion v. CA, G.R. No, 109125, December 2, 1994. ‘art. 1287, NCC.3. 4. 5. REEDS ae ena Quasi-contract = Deliet Quasi-delict NOTE: In general, obligations emanate in one hand, from Jaw; and on the other hand, from private acts (such as contracts, quasi-contracts, delicts and quasi-delicts). Those emanating from private acts, in turn, are produced either by bilateral acts (as in contract) or by unilateral acts (as in quasi-contract, delict and quasi-delict). Those arising from. unilateral acts, in turn, are produced either by lawful acts (such as quasi-contract) or by unlawful acts (such as delict and quasi-delict). (4) Obligations Arising From Law (Ex Lege): [4.1] Notpresumed: These obligations are not to be presumed: (4.21 because they constitute a limitation upon individual freedom, imposing duties which the obligor cannot avoid. Only those expressly determined in the New Civil Code of the Philippines or in special laws* are demandable. They are thus governed and regulated by the law creating them. However, the provisions of Book IV of the Civil Code have suppletory effect. e fi > 5) Here, the employer cannot relieve himself of ability by proving that he exercised alll the ance of a good father of a family in the sition and supervision of his employees. ‘This is so because of the very nature of the obligation. [8.6.3] Quasi-Delict: 1) Note that the same act or omission, charac- terized by fault or negligence, may produce two distinct sources of obligations: (1) delict; or (2) quasi-delict. Note further that the ex- *Calang v. People, supra; se also Joaquin +, Aniceto, 120 Phil. 1110; Pajarito ¥. Sneris, 87 SCRA 275: Carpio V. Doroja, G.I, No. 64516, December 5, 1968. on Carpio v. Doroja, sup) Vida. de Paman v. Seneris, 116 SCRA 709.CIVIL LAW REVIEWER istence of a contract between the parties is not. a bar to the recovery of eivil liability un- der quasi-delict, if the same act that breaks the contract is also a tort. Hence, in the giv- en situation, quasi-delict is another possible source of obligation. 2) Who shall be liable under quasi-delict? a) The employee, under Article 2176 of the OBLIGATIONS & CONTRACTS D yond the range of employment, such as when the employees are staging a strike, in which case, they are considered acting on their own and beyond the range of their employment.» In quasi-delict, the employers are liable for the damages caused by their employees acting within the scope of their assigned tasks.° Under the law on common carriage, however, the common carrier or employer is NCC; and/or liable for the death of or injuries to passen- b) The employer, under Artiele 2180 of the gers through the negligence or willful acts of NCC. the former's employees, although such em- 8) In quasi-delict, the neyligence or fault should iployees may havaiacted beyond the seape.cf be clearly established because it is the basis of the action. 4) Whenever an employee's negligence causes damage or injury to another, there instantly arises @ presumption juris tantum that the employer failed to exercise diligentissimi patris families in the selection (culpa in eli- giendo) or supervision (culpa in vigilando) of its employees. 5) In an action based on quasi-delict, the li ability of the employer under Article 2180 of the NCC is direct and primary, subject to the defense of due diligence in the selection and supervision of the employee. If the em- ployee and the employer are sued together, their liability is solidary.” 6) Anemployer’s liability for acts of its employ- ces attaches only when the tortuous conduct of the employee relates to, or is in the course of, his employment. Hence, an employer in- curs no liability under quasi-delict when an employee's conduct, act or omission is be- their authority or in violation of the orders of the common carrier or employer." And such Viability does not cease upon proof that the common carrier or employer exercised all the diligence of a good father of a family in the selection and supervision of its employ- ees." Note that in the latter, the source of the employer's obligation is not quasi-deliet but the contract of common carriage. KINDS OF OBLIGATIONS A. Civil and Natural Obligations {9] Basis of Classification: From the view point of their juridical quality and/or efficaciousness, obligations are classified into— Civil Obligations — Those that are based on positive law and give a right of action to compel their performance;"* and Natural Obligations — Those that are based on equity and natural law and which do not grant a right of action to enforce “Universal Aquarius, Inc, v.@Q.C. Human Resources Management Corp., 533 SCRA 147, 332 SCRA 356. "Mendara v. Soriano, 524 SCRA 260. Real v. Bolo, §13 SCRA 111; Manlielic v. Calaunan, 612 SCRA 642, Zan. 1769, NCC. ‘Aguila v. Baldovizo, 517 SCRA 91 Mercury Drug Corp. v. Huang, 525 SCRA 427 art, 1423, NOC.28 CIVILLAW REVIEWER, CHAPTER ONE 29 OBLIGATIONS & CONTRACTS their performance, but after voluntary fulfillment by the obligor, they authorize the retention of what has been delivered or rendered by reason thereof." (11) Examples of Natural Obligations under the Civil Code: 1) When the right to suc upon a eivil obligation has lapsed by extinctive prescription (or barred by statute of {10} Natural and Purely Moral Obligations, Distinguished: While Limitations), thecebligation Ja convarted Infa:ayneturel both kinds of obligations are not enforceable in courts and their obligation.” performance depend upon one’s conscience, they differ in the 2) ‘The debtor may not be compelled to pay monetary following respects — interest on a loan unless the same has been expressly 1)_ In natural obligation, there is a juridical tie (although the same has been rendered ineffective by some special circumstance, such as prescription or statute of limitations); while there is none in a purely moral obligation.” 2) Asa consequence, the law does not recognize any legal consequence arising from a purely moral obligation while the law recognizes certain legal effects flowing out of @ natural obligation, as follows: a, In case~of-voluntary fulfillment of a natural obligation by the debtor, the creditor is authorized to retain what has been delivered or rendered by reason thereof. But in order for the performance or fulfillment of a natural obligation to be considered “voluntary,” the debtor must have acted with knowledge that he cannot be compelled to perform the obligation. If the performance of the obligation was by reason of mistake, the debtor can recover the payment on the basis of sulutio indebiti~ Note that Article 1960 of the NCC recognizes the distinction between solutio indebiti and voluntary payment of natural obligations. b. A natural obligation ean be ratified and converted into a civil obligation. ©. A natural obligation can be guaranteed which, in effect, results in the ratification and conversion of the same into a civil obligation. ‘ear. 2166, NCC. ‘art. 2052, 2d par., NCC. stipulated in writing." However, if the borrower voluntarily pays the monetary interest in the absence of stipulation therefore, he cannot recover the same because such voluntary payment is a case of natural obligation. But if the payment of the interest was by reason of mistake, the debtor may still recover it pursuant to solutio inde 3) When without the knowledge or against the will of the debtor, a third person pays a debt which the obligor is not legally bound to pay because the action thereon has preseribed, the third-party payor may not demand reimbursement from the debtor because such payment has not been beneficial to the latter. The obligation of the debtor to the third-party payor is not civil, but a natural one. Hence, if the debtor later voluntarily reimburses the third person, he cannot recover what he has paid." 4) When, after an action to enforce a civil obligation has failed, the defendant voluntarily performs the obligation, he cannot demand the return of what he has delivered or the payment of the value of the service he has rendered." 5) The rule is that an heir is not liable beyond the value of the property he received from the decedent. But when he voluntarily pays a debt of the decedent exceeding the value of the property which he received by will or Wart, 1424, NCC. Art. 1956, NCC. wart 1960, NCC. "Art, 1286, 2nd par, NCC. Mart, 1425, NC "Art. 1428, NCC. Art. 1211, 1st par., NCC.30 CIVIL LAW REVIEWER by the law of intestacy from the estate of the deceased, the payment is valid and cannot be rescinded by the payor. 6) When a will is declared void because it has not been executed in accordance with the formalities required by law, the estate shall pass to the legal or intestate heirs by the law of intestacy. But if one of the intestate heirs, after the settlement of the debts of the deceased, pays a legacy in compliance with a clause in the defective will, the payment is effective and irrevocable. B. Real and Personal Obligations [12] Basis of Classification: From the view point of the kind of prestation present in an obligation, it is classified either as — @) Real Obligation — which involves an obligation to give or to deliver. A real obligation, in turn, is either: Determinate or Specific Obligation — which involves an obligation to deliver a determinate or specific thing; or Indeterminate or Generic Obligation — which involves the obligation to deliver an indeterminate or generic thing. 8) Personal Obligation — which involves an obligation to door not to do. A personal obligation, in turn, is either: Positive — which involves an obligation to do; or Negative — which involves an obligation not to do. [13] Determinate or Specific Obligation: (13.1] When considered determinate: A thing is considered determinate or specific when it has been particularly designated or physically segregated from all others of the same class or species." ‘Art. 1429, NCC. tart, 1490, NCC, Ware, 1460, Ist par., NCC. ‘CHAPTER ONE. an OBLIGATIONS & CONTRACTS [13.2] Accessory obligations in determinate ones: In a deter- ‘minate obligation, the principal obligation of the debt- or is to deliver the specific or determinate thing due. In every determinate obligation, however, the following obligations are considered accessory — (13.2.1) Reminders: 18.2.2) ‘The obligation to preserve the thing to be delivered with the proper diligence of a good father of a family, unless the law or the stipulation of the parties requires another standard of care." ‘The parties may validly agree on a kind of diligence which is lower than that of a good father of a family, eg., slight care. ‘The parties may also validly agree on a degree of diligence which is higher than that of a good father of a family, eg., extra-ordinary diligence. ‘The parties may also validly agree to make the debtor liable even if the loss or deteriora- tion is by reason of fortuitous event. But the parties may not validly agree to make the debtor absolutely exempt from any li ability arising from his own negligence. Such waiver is contrary to public policy. ‘The obligation to deliver the fruits if the creditor is already entitled to it." Reminders: - a “Are. 1169, NCC. “art. 1174, NCC, "art. 1164, NCC. id. ‘The creditor acquires a right to demand for the delivery of the fruits of the determinate thing due from the time the obligation to de- liver the determinate thing arises."(13.3) CIVIL LAW REVIEWER b. The obligation to deliver the determinate thing ordinarily arises at the time of the per- fection of the contract, if contract is the source of the obligation,'* except if the obligation to deliver is made to depend upon the happening of a suspensive condition, in which case, the obligation arises only upon the happening of the said condition.= ¢. But if the obligation to deliver the specific thing is subject merely to a term or period, as when another date has been fixed for the delivery of the thing, it must be understood that the right of the creditor to the fruits be- gins from the moment the vinculum attaches or upon the perfection of the contract. Note that Article 1164 of the NCC speaks of the arising or birth of the obligation to deliver, and-not of the demandability of its perfor mance," [13.2.3] The obligation to deliver the accessions and accessories, even though they may not have been mentioned. . as arts at prisaahiat inate obligation: y 2) 3) Right to compel the debtor to deliver the deter- minate thing due in an action for specific perfor- ‘mance, with a right to recover damages." Right to rescind the obligation, in proper cases, with a right to recover damages. Right to recover damages where it is the only feasible remedy. 1815, NCC. “eArt, 1181, NCC. UAIV Vieonte Francisco, Civil Code of the Philippines, p. 60. ta, Ast, 1166, NCC. ast. 1165, lot par., NCC. (CHAPTER ONE 38 OBLIGATIONS & CONTRACTS. [141 Indeterminate or Generic Obligations: [14.1] When considered generic: A thing is generic if it has been designated merely by its class or genus. (14.2) Remedies in case of breach: In case of breach of generic or indeterminate obligations, the following are the alternative remodies of the creditor: n 2) 3) Right to compel the debtor to make the deliv- ery of the generic thing, with a right to recover damages. Right to ask another person to make the de ery, at the expense of the debtor,"* with a right to recover damages." Right to rescind the obligation, in proper cases, with a right to recover damages. (15] Positive Personal Obligation: [15.1] When considered breached: a) b) If the debtor fails to do the obligation; or Even in case of performance but the same is ane either in a poor manner or in contraven- tion of the tenor of the obligation.» (15.21 No compulsion of debtor: In case of breach of an ‘obligation to do, the creditor may not compel the debtor to perform the act required against the latter's will because the same amounts to involuntarily servitude, which is prohibited under the Constitution," and such compulsion may amount to coercion, which is penalized under the Revised Penal Code." 116.3) to ask In case of non-per- ‘Remedy in case of non-performance: formance of an obligation to do, the creditor is entitled another person to perform the obligation and Art. 1165, 2nd par., NCC. "Art, 1170, NCC. "Art, 1167, NCC. *8Soe, 18(2), Art. IIL, 1987 Philippine Constitution. "Art. 286, RPC.