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THE LAW ON OBLIGATIONS AND CONTRACTS

Answer the following questions:

1. Define the following:
A. Obligation
The word obligation is derived from the Latin word “obligatio”, which means tying
or binding. This condition is recognized by law wherein one is committed to give a
thing, doing a certain act, or not doing. To the extent, according to Article 1156 under
Civil Code definition, it is the duty under the law of the debtor or obligor when it speaks
of obligation as juridical necessity; in its passive manner. Thus, the rights and duties
arising from obligation are legally demandable and the courts of justice may be called
upon through proper action, in case of noncompliance.
B. Civil Obligation
As defined by the nature of obligation under the Civil Code, civil obligation is
derived from binding force from positive law which gives the creditor or obligee the right
under the law to enforce performance by court action of the coercive power of public
authority.
C. Natural obligation
On the other hand, natural obligation is derived from binding forces based from
equity and natural justice or law. The fulfillment of natural obligation cannot be
compelled by courts of justice as it depends on the good science or voluntary action by
the debtor.
D. Juridical Necessity
Obligation could be consider as juridical necessity. Juridical necessity means that
if the obligation is not fulfilled or in case of noncompliance, the rights and duties arising
from obligation are legally demandable and the courts of justice may be called by
aggrieved party upon through proper action to enforce the fulfillment of the obligation.
Other than this, the obligor could also be liable for damages as a compensation for the
harm or injury suffered by the creditor for the violation of his rights.
E. Right
Right is a legal entitlement a person has as it is under the law. It is an interest
recognized and protected by the rule of right; to demand something from another
whatever object or prestation is as long as it does not violate the law itself.

F. Wrong

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Legally defining this, it is an act or omission of one party in violation of the legal
rights of another. This means that if a person violates what has been agreed between
another, which is recognized by law, this could be say that this situation shows that the
person ho has the duty to fulfill has wrongfully violated the legal right of the another
party.
2. What are the essential requisites of obligation? Explain
The following are the elements or the essential requisites of an obligation:
A. A passive subject- This element is also called as the debtor or obligor. A
person who has the duty to fulfill his obligation to give, to do, or not to do.
B. An active subject- This element is known as the creditor or obligee who is a
person who has the right to demand to the fulfillment of the obligation.
C. Object or prestation- This element refers to the subject matter of the
obligation which can be observed by the debtor through giving, doing, or not doing.
It is the reason why the obligation between two parties exist.
D. A juridical or legal tie- This is also called as efficient cause that binds or ties
the parties to the obligation. It is determined through knowing the source of
obligation (law, contracts, quasi-contract, crimes or acts of omission punished by
law, and quasi-delict).

3. What are the forms of obligation?

A. According to Article 1356, as a general rule, the law does not require any form in
obligations arising from contracts for their validity or binding force.
However, when the law requires that a contract be in some form in order that it may
be valid or enforceable, or that a contract be proved in a certain way, that
requirement is absolute and indispensable.
B. If the obligation arise from other sources, it does not have any form at all.
4. What are the kinds of obligation according to the subject matter? Explain
Obligation has two kinds or forms according to its subject matter:
A. Real Obligation- Real obligation refers to the obligation where a person who
has the duty is entitled to give something. Its primary difference is the subject
matter which is tangible and should be delivered by the obligor to the obligee.
B. Personal Obligation- This obligation refers to do or not to do. Its subject
matter is an act to be done or not to be done. Personal obligation has two kinds
which are:
a. Positive Personal Obligation- It is a kind of personal obligation which
refers to the obligation to do or render certain service/s. Example of

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this is to always go to the school as an obligation to attend classes as a

student.
b. Negative Personal Obligation- This is a kind of personal obligation
wherein the subject matter is to not to do or not to render certain
services. This is completely in contrary to the other kind of personal
obligation. A concrete example for this is to not violate the rules and
regulations of the school as a student in order to sustain the peace and
order of the school.
5. What are the sources of obligation?
As stated in Article 1157, obligations arise from law; contracts; quasi-contracts; acts or
omissions punished by law and; quasi-delicts.
A. Law- It is one of the sources of obligation that is imposed by the law itself.
This refers to the legal obligations decreed by specific provision of law which means
that obligations arising from law are not presumed and that to be demandable
must be clearly provided for, expressly implied by the law.
B. Contracts- This source of obligation is obtained when a meeting of minds
between two persons whereby one person binds himself, with respect to the
other, to give or do something. It arises from the stipulation of the parties on their
voluntary agreement.
C. Quasi-contracts- As source of obligation, it arises from lawful, voluntary, and
unilateral acts which are enforceable to the end that no one shall be unjustly
enriched or benefited at the expense of another.
D. Crimes or acts of omissions punished by law- Crimes or acts of violating
the law does not present be criminal liability, but also civil liability as the
consequence of criminal offense.
E. Quasi-delicts- This source of obligation arises from damage caused to
another through an act or omission, there being fault or negligence, but no
contractual relation exists between the parties.

6. What are the types of quasi-contract? Explain

As stated in Article 2142, quasi-contract is a juridical relation from lawful,
voluntary, and unilateral acts by virtue of which the parties become bound to each to the
end that no will be unjustly enrich or benefited at the expense of another. This obligation
arises in order to prevent injustices as the law considers the parties as having entered
into a contract, although it is not actually done.

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There two types or kinds of quasi-contract such as follows:

A. Negotiorum gestio- This type of quasi-contract refers to the voluntary
management of the property or affairs of another without the knowledge or
consent of the latter.
B. Solutio indebiti- It is type of quasi-contract which happens when something
is received by a person who has no right to demand and it was mistakenly
delivered.
7. What are the scope of civil liability?
To the extent, according to Revised Penal Code and civil Code of the Philippines,
the extent of the civil liabilities of a person charged with a crime are the:
A. Restitution;
B. Reparation for damages caused and;
C. Indemnification for consequential damages.
8. What are the requisites of quasi-delict?
According to Article 1162, the essential requisites in order to consider an
obligation as a quasi-delict are as follow:
A. There must be an act or omission;
B. There must be fault or negligence;
C. There must be damage caused;
D. There must be a direct relation or connection of cause and effect between the
act or omission and the damage and lastly;
E. Both parties must not have pre-existing contractual relation between the
parties.

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