Obligations | OBLIGATIONS AND CONTRACTS

In Philippine civil law, obligations and contracts form a crucial part of the Civil Code, specifically within Book IV, which governs obligations in general and particular contracts. Let’s delve into each aspect of obligations as stipulated under Philippine law, ensuring a comprehensive understanding.


A. Obligations

1. Definition of Obligation

  • Under Article 1156 of the Civil Code of the Philippines, an obligation is defined as a "juridical necessity to give, to do, or not to do." This means that an obligation imposes a binding legal duty on one or more persons (the obligor/s) in favor of another or others (the obligee/s).

2. Elements of an Obligation

  • An obligation consists of four elements:
    1. Active Subject (Obligee): The person who has the right to demand the performance of the obligation.
    2. Passive Subject (Obligor): The person who is bound to perform or fulfill the obligation.
    3. Object or Prestation: The conduct or act that is the subject of the obligation, which may involve giving, doing, or not doing something.
    4. Juridical or Legal Tie (Vinculum Juris): The legal bond that binds the obligor to the obligee, compelling the obligor to perform or fulfill the prestation.

3. Sources of Obligations

  • According to Article 1157, obligations arise from:
    1. Law: Obligations imposed by statutory law (e.g., tax obligations, obligations to support family members).
    2. Contracts: Obligations arising from the stipulations and agreements between parties, subject to the autonomy of contracts under Article 1306.
    3. Quasi-Contracts: Obligations imposed by law, arising from voluntary and lawful acts which do not involve contracts (e.g., negotiorum gestio, solutio indebiti).
    4. Delicts or Crimes: Obligations arising from criminal acts, where a civil liability may accompany the criminal liability (e.g., restitution, reparation for damages).
    5. Quasi-Delicts (Torts): Obligations arising from damages caused to another by fault or negligence, which are not criminal in nature (e.g., damages in cases of accidents).

4. Kinds of Obligations

  • According to the Subject Matter:

    • Real Obligation: Obligation to give a thing (e.g., delivery of a house, payment of a debt).
    • Personal Obligation: Obligation to perform an act (positive obligation) or to refrain from performing an act (negative obligation).
  • According to Performance:

    • Pure Obligation: An obligation with no condition or term and is demandable immediately.
    • Conditional Obligation: An obligation whose effectivity depends upon the fulfillment or non-fulfillment of a condition (suspensive or resolutory).
    • Obligation with a Period: An obligation whose demandability or termination is subject to a specified period or date.
  • According to Plurality of Subjects:

    • Joint Obligation: Where each obligor or obligee is liable only for their proportionate share.
    • Solidary Obligation: Where each obligor or obligee may be compelled to fulfill the entire obligation (e.g., solidary debtors).
  • According to Object/Prestation:

    • Divisible Obligation: An obligation that can be partially performed without defeating the purpose of the obligation.
    • Indivisible Obligation: An obligation that cannot be partially fulfilled, requiring complete performance.
  • According to Sanction for Non-Performance:

    • Civil Obligation: An obligation enforceable in court.
    • Natural Obligation: An obligation based on equity and natural law that cannot be enforced in court but may be complied with voluntarily.

5. Modes of Extinguishing Obligations

  • Obligations may be extinguished through the following modes:
    1. Payment or Performance: Fulfillment of the prestation by the obligor.
    2. Loss of the Thing Due: If the object of the obligation is lost or destroyed without fault of the obligor.
    3. Condonation or Remission of Debt: The obligee voluntarily waives or forgives the debt.
    4. Confusion or Merger of Rights: When the roles of obligor and obligee merge in one person.
    5. Compensation: When two persons are mutually creditors and debtors of each other.
    6. Novation: When the original obligation is extinguished and a new one is created in its place, involving a change of object, cause, or parties.

6. Breach of Obligation

  • Types of Breach:
    • Non-Performance: The obligor fails to fulfill the prestation.
    • Delay (Mora): Failure to perform the obligation on time.
    • Contravention of Tenor: Failure to comply with the terms or manner agreed upon.
  • Remedies in Case of Breach:
    • Demand for Specific Performance: Compelling the obligor to perform as agreed, if possible.
    • Rescission: Cancellation of the obligation with the right to damages if there is a substantial breach.
    • Damages: Compensation for losses suffered by the obligee due to the breach.

7. Types of Damages

  • Actual/Compensatory Damages: Damages for actual loss or injury sustained.
  • Moral Damages: Compensation for physical suffering, mental anguish, and similar injuries.
  • Nominal Damages: Symbolic damages awarded to recognize a legal right.
  • Temperate/Moderate Damages: Damages granted when there is some injury but the exact value is not proven.
  • Exemplary/Punitive Damages: Damages intended to punish the wrongdoer and serve as a deterrent.
  • Liquidated Damages: Damages agreed upon by the parties as a penalty for breach, usually stipulated in a contract.

Detailed Provisions and Special Considerations

1. Pure and Conditional Obligations (Articles 1179–1192)

  • Pure Obligation: Demandable at once without conditions.
  • Conditional Obligation: Dependent on a future or uncertain event.
    • Suspensive Condition: Obligation arises only upon fulfillment of the condition.
    • Resolutory Condition: Obligation is extinguished upon fulfillment of the condition.

2. Obligations with a Period (Articles 1193–1198)

  • Period or Term: A future certain event which determines the demandability or extinguishment of the obligation.
  • Suspensive Period: Obligation becomes demandable only when the period arrives.
  • Resolutory Period: Obligation ceases upon arrival of the period.

3. Joint and Solidary Obligations (Articles 1207–1222)

  • Joint Obligation: Each debtor is liable only for their proportionate part.
  • Solidary Obligation: Each debtor or creditor can demand or be compelled to perform the entire obligation.

4. Divisible and Indivisible Obligations (Articles 1223–1225)

  • Divisible Obligation: Capable of partial performance.
  • Indivisible Obligation: Cannot be performed in parts.

5. Alternative and Facultative Obligations (Articles 1199–1206)

  • Alternative Obligation: The obligor is bound to perform one of multiple prestations.
  • Facultative Obligation: The obligor is bound to a principal prestation but may substitute it with another.

Conclusion

The law on obligations in the Philippines outlines a highly structured and comprehensive framework, which mandates specific duties upon individuals and defines remedies in case of non-compliance. Each type of obligation—whether pure, conditional, divisible, or solidary—comes with distinct legal effects and implications for both the obligor and the obligee. This system ensures justice and fairness, providing means to enforce, compensate, or extinguish obligations depending on specific situations.