(MEMORIZATION) OBLIGATIONS 1 **From General Principles to OBLIGATIONS EX QUASI - DELICTO.

What are the ways in Determining whether an obligation arises from law or from some other source?

1. Arises from law if it establishes obligation; 2. Arises from the act itself if the law merely recognizes the existence of an obligation generated by an act (Manresa). e.g. 1. According to Art. 2014 of the NCC, a loser in a game of chance may recover his loss from the winner, with legal interest from the time he paid the amount lost (Leung Ben v. O'Brien, G.R. No. L-13602, April 6, 1918); 2. The obligation of the spouses to support each other; 3. The obligation of the employers under the Worker's Compensation Act; 4. The obligations of the owners of the dominant and servient estates in legal easements and others scattered in the NCC and in special laws (Jurado, 2009); 5. The obligation to pay taxes (Rabuya, 2017).

What are the Characteristics of a legal obligation ?

1. Does not need the consent of the obligor; 2. Must be expressly set forth in the law creating it and not merely presumed; and 3. In order that the law may be a source of obligation, it should be the creator of the obligation itself (NCC, Art. 1158).

What are the Characteristics of a quasi-contract (LUV)?

1. It must be Lawful; 2. It must be Unilateral; and 3. It must be Voluntary (Pineda, 2000).

What are the ELEMENTS OF AN OBLIGATION?

1. Juridical tie or vinculum juris or efficient cause - the efficient cause by virtue of which the debtor becomes bound to perform the prestation (Pineda, 2000). NOTE: The vinculum juris is established by: a. Law; b. Bilateral acts; c. Unilateral acts (Tolentino, 2002). 2. Active subject [creditor (CR) or obligee] - The person demanding the performance of the obligation. It is he in whose favor the obligation is constituted, established, or created (Pineda, 2000). 3. Passive subject [debtor (DR) or obligor] - The person bound to perform the prestation to give, to do, or not to do (Pineda, 2000). 4. Object or prestation - The subject matter of the obligation which has a corresponding economic value or susceptible of pecuniary substitution in case of noncompliance. It is a conduct that may consist of giving, doing, or not doing something (Pineda, 2000). NOTE: In order to be valid, the object or prestation must be: 1. Licit or lawful; 2. Possible, physically, & judicially; 3. Determinate or determinable; and 4. Pecuniary value or possible equivalent in money. Absence of any of the first three makes the object void. NOTE: Some writers add a fifth one: the form in which the obligation is manifested. This element, however, cannot be considered as essential. There is no particular form required to make obligations binding, except in certain rare cases (Tolentino, 1991).

What are the exclusive SOURCES OF OBLIGATIONS?

1. Law; 2. Contracts; 2. Quasi-contracts; 3. Delict; 4. Quasi-delict. This enumeration is exclusive. No obligation exists if its source is not one of those enumerated in Art. 1157 of the NCC (Navales v. Rias, G.R. No. L- 3489, September 7, 1907). Note: Actually, there are only two sources (i.e., law and contracts) because obligations arising from quasi-contracts, delicts, and quasi-delicts are imposed by law (Leung Ben v. O'Brien, 38 Phil. 182).

What is Solutio indebiti (SI) v. Accion in rem verso (AIRV)?

1. Mistake is an essential element in SI which is not necessary in AIRV; 2. An AIRV is merely an auxilliary action, available only when there is no other remedy on contract quasi-contract, crime or quasi-delict (Rabuya, 2017).

What are the Elements of a quasi-delict?

1. Negligent or wrongful act or omission; 2. Damage or injury caused to another; 3. Causal relation between such negligence or fault and damage; and 4. No pre-exisitng contractual relationship between the parties (NCC, Art. 2176).

What are the Principal forms of quasi-contracts?

1. Negotiorum gestio (inofficious manager) - Arises when a person voluntarily takes charge of the management of the business or property of another without any power from the latter (NCC, Art. 2144); 2. Solutio indebiti (unjust enrichment) - Takes place when a person received something from another without any right to demand for it, and the thing was unduly delivered to him through mistake (NCC, Art. 2154). NOTE: The delivery must not be through liberality or some other cause.

What is the Scope of civil liability (IRR)? IMPT. Under delict.

1. Restitution; 2. Reparation for damage caused; and 3. Indemnity for consequential damages (Art. 104, RPC).

What are the classification of obligations? PART 2

6. Existence of burden or condition a. Pure - not burdened with any condition or term. It is immediately demandable (Art. 1179); b. Conditional - subject to a condition which may be suspensive (happening of which shall give rise to the obligation) or resolutory (happening of which terminates the obligation) (NCC. 1181). 7. Character of responsibility or liability a. Joint - each debtor is liable only for a part of the whole liability and to each creditor shall belong only a part of the correlative rights (8 Manresa 194 ; NCC. 1207); b. Solidary - debtor is answerable for the whole of the obligation without prejudice to his right to collect from his co-debtors the latter's shares in the obligation (NCC. 1207). 8. Susceptibility of partial fulfillment a. Divisible - obligation is susceptible of partial performance (NCC. 1223; and 1224); b. Indivisible - obligation is not susceptible of partial performance (NCC. 1225). 9. Right to choose and substitution a. Alternative - obligor may choose to completely perform one out of the several prestations (NCC. 1199); b. Facultative - only one prestation has been agreed upon, but the obligor may render one in substitution of the first one (NCC. 1206). 10. Imposition of penalty a. Simple - there is no penalty imposed for violation of the terms thereof (NCC. 1226); b. Obligations with a penal clause - obligation which imposes a penalty for violation of the terms thereof (NCC. 1226; Pineda, 2000). 11. Sanction a. Civil - gives a right of action to compel their performance; b. Natural- not based on positive law, but on equity and natural law; does not grant a right of action to enforce their performance, but after voluntary fulfillment by the obligor, they authorize retention of what has been delivered rendered by reason thereof. Moral - cannot be enforced by action but are binding on the party who makes it in conscience and natural law.

What is OBLIGATION EX QUASI - CONTRACTU? or Quasi-Contract

A juridical relation arising from lawful, voluntary, and unilateral acts based on the principle that no one shall be unjustly enriched or benefited at the expense of another (NCC, Art. 2142).

What is Quasi-delict or tort?

An act or omission arising from fault or negligence which causes damage to another, there being no pre-existing contractual relations between the parties (NCC, Art. 2176). NOTE: A single act or omission may give rise to two or more causes of action. Thus, an act or omission may give rise to an action based on delict, quasi-delict, or contract. In negligence cases, prior conduct should be examined, that is, conduct prior to the injury that resulted, or in proper case, the aggravation thereof.

Quasi-contract distinguished from "implied contracts"

An implied contract, in the proper sense, is a contract which arises when the intention of the parties is not expressed, but an agreement in fact, creating an obligation, is implied or presumed from their acts, or where there are circumstances which show a mutual intent to contract. An implied contract requires consent while a quasi-contract, being a unilateral contract, does not. The basis of an implied contract is the will of the parties while the basis of a quasi-contract is law, to the end that there be no unjust enrichment (Rabuya, 2017).

What is an obligation?

An obligation is a juridical necessity to give, to do, or not to do (Art. 1156). It is a juridical relation or a juridical necessity whereby a person (creditor) may demand from another (debtor) the observance of a determinative conduct (giving, doing, or not doing), and in case of breach, may demand satisfaction from the assets of the latter (Makati Stock Exchange v. Campos, G.R. No. 138814, April 16, 2009).

What is contract vs quasicontract?

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What are OBLIGATIONS EX DELICTO or delict and its basis?

Delict An act or omission punishable under the law. Basis GR: Art. 100 of the RPC provides: "Every person criminally liable for a felony is also civilly liable." XPNs: Crimes of treason, rebellion, espionage, contempt and others wherein no civil liability arises on the part of the offender either because there are no damages to be compensated or there is no private person injured by the crime (Reyes, 2008).

What are the classification of obligations? PART 1

From the viewpoint of: 1. Creation a. Legal - imposed by law (Art. 1158); b. Conventional - established by the agreement of the parties (eg. Contracts). 2. Nature a. Personal - to do; not to do; b. Real - to give. 3. Object a. Determinate / specific - particularly designated or physically segregated from all others of the same class; b. Generic - designated merely by its class or genus; c. Limited generic - generic objects confined to a particular class or source (Tolentino, 2002). (e.g. An obligation to deliver one of my horses). 4. Performance a. Positive - to give; to do; b. Negative - not to do (ex. an obligation not to run for an elective post). 5. Person obliged a. Unilateral - only one party is bound; b. Bilateral - both parties are bound. NOTE : A bilateral obligation may be reciprocal or non-reciprocal. Reciprocal obligations are those which arise from the same cause, wherein each party is a debtor and a creditor of the other, such that the performance of one is conditioned upon the simultaneous fulfillment of the other.

When is the Time of perfection for an obligation?

GR: 3. Law - from the time designated by the law creating or regulating them; 4. Contracts -from the time of the perfection of the contract. e.g. meeting of the minds XPNs: a. When the parties made a stipulation on the right of the creditor to the fruits of the thing; b. When the obligation is subject to a suspensive condition, from which it arises upon fulfillment of the condition; c. When the obligation is with a period; there is already an existing obligation, but it is only demandable when the period expires or becomes due 5. Quasi Contracts, delicts, quasi-delicts - from the time designated by the law creating or regulating them.

What is the general rule and its exceptions in Acquittal in criminal case?

GR: The acquittal of the accused in criminal case on the ground of reasonable doubt does not preclude the filing of a subsequent civil action and only preponderance of evidence is required to prove the latter. XPNs: When the acquittal is on the basis that: 1. The accused did not commit the crime charged; or 2. There is a declaration in the decision of acquittal that no negligence can be attributed to the accused and that the fact from which the civil action might arise did not exist (NCC, Art. 29).

What is the general rule and exceptions in Obligations as to forms?

GR: The law does not require any form in obligations arising from contracts for their validity or binding force (Art. 1356). XPNs: 1) When the form is essential to the validity of the contract as required by law (Art. 1346); 2) When the contract is unenforceable unless it is in a certain form, such as those under the Statute of Frauds as formulated in Art. 1403. Obligations arising from other sources (Art. 1157) do not have any form at all (De Leon, 2010).

What are the Rules governing the obligations arising from contracts?

GR: These obligations arising from contracts shall be governed primarily by the stipulations, clauses, terms, and conditions of the parties' agreements. XPN: Contracts with prestations that are unconscionable or unreasonable (Pineda, 2009).

What is the Implied institution of the civil action in a criminal case?

GR: When a criminal action is instituted, the civil action for the recovery of the civil liability arising from the offense charged shall be deemed instituted with the criminal action (Sec. 1, Rule 111, Rules of Court). XPNs: When the offended party: 1. Waives the civil action; 2. Reserves the right to institute it separately; and 3. Institutes the civil action prior to the criminal action (Rule 111, Sec. 1, Rules of Court).

What is the rule in case of excess of payment of interest?

If the borrower pays interest when there has been no stipulation therefor, the provisions of the Code concerning solutio indebiti, or natural obligations, shall be applied, as the case may be. If the payment of interest is made out of mistake, solutio indebiti applies; hence, the amount must be returned to the debtor. If the payment was made after the obligation to pay interest has already prescribed, natural obligation applies; hence, the creditor is authorized to retain the amount paid.

What is OBLIGATION EX CONTRACTU or Contractual Obligation? And it requisites.

It is Obligations arising from Contracts. Requisites of a contractual obligation 1. It must contain all the essential requisites of a contract (NCC, Art. 1318); and 2. It must not be contrary to law, morals, good customs, public order, and public policy (NCC, Art. 1306).

What is an obligation in civil law?

It is a juridical necessity because in case of non compliance, the courts of justice may be called upon by the aggrieved party to enforce its fulfillment or, in default thereof, the economic value that it represents. Art. 1156 refers only to civil obligations which are enforceable in court when breached. It does not cover natural obligations (Arts. 1423 -1430) because the latter are obligations that cannot be enforced in court on equity and natural law and not on positive law (Pineda, 2000). When there is a right, there is a corresponding obligation. Right is the active aspect while obligation is the passive aspect. Thus, the concepts of credit and debt are two distinct aspects of unitary concept of obligation (Pineda, 2000).

Difference betweent delict and Quasi delict?

NOTE: Inasmuch as civil liability co-exists with criminal responsibility in negligence cases, the offended party has the option between an action for enforcement of civil liability based on culpa criminal under Art. 100 of the RPC and an action for recovery of damages based on culpa aquiliana under NCC, Art. 2177.

What are the different kinds of prestations?

Obligation to give - Consists in the delivery of a thing to the creditor. Obligation to do - Covers the rendering of works or services physical whether or mental. Obligation no to do - Refraining from doing certain acts.

What is the Binding force of obligation ex contractu?

Obligations arising from contracts have the force of law between the parties and should be complied with in good faith (NCC, Art. 1159). This is known as the "principle of obligatory force of contracts" (Rabuya, 2017). Good faith is performance in accordance with the stipulation, clauses, terms, and conditions of the contract (Pineda, 2000). GR: Neither party may unilaterally evade his obligation in the contract. XPNs: Unilateral evasion is allowed when the: 1. Contract authorizes such evasion; or 2. Other party assents thereto.

What is Obligation Ex Lege ?

Obligations derived from law are not presumed. Only those expressly determined in the Code or in special laws are demandable and shall be regulated by the precepts of the law which establishes them and as to what has not been foreseen by the provisions of Book IV of NCC (NCC, Art. 1158). NOTE: If there is conflict between the NCC and a special law, the latter prevails unless the contrary has been expressly stipulated in the NCC (NCC, Art. 18; Paras, 2008).

What is meant by presumptive consent?

Since a quasi-contract is a unilateral contract created by the sole act(s) of the gestor, there is no express consent given by the other party. The consent needed in a contract is provided by law through presumption (Pineda, 2000).

Instances when Art. 2176 is inapplicable? or Quasi delict?

a) When there was a pre-existing contractual relation because the breach of contract is the source of the obligation (Robles v. Yap Wing, 41 SCRA 267, G.R. No. L-20442, October 4, 1971); NOTE: However, if the act that breaches the contract is tortuous, the pre-existing contractual relation will not bar the recovery of damages (Singson v. BPI, G.R. No. L-24837, June 27, 1968); b) When the fault or negligence is punished by law as a crime, Art. 100 of RPC shall be applicable; c) If the action for quasi-delict is instituted after four years, it is deemed prescribed (Afialda v. Hisole, G.R. No. L-2075, November 29, 1949); d) When the injury suffered by a person is the result of a fortuitous event without human intervention; e) If there is no damage or injury caused to another (Walter A. Smith & Co., Inc. v. Cadwallader Gibson Lumber Company, G.R. No. L-32640, December 29, 1930).