Below is a detailed and comprehensive overview on the topic of obligations under Civil Law in the Philippines, focusing on the Nature and Effects of Obligations, which falls under Obligations and Contracts.

CIVIL LAW > V. OBLIGATIONS AND CONTRACTS > A. Obligations > 3. Nature and Effects of Obligations

I. Nature of Obligations

An obligation is a juridical necessity to give, to do, or not to do (Article 1156 of the Civil Code of the Philippines). The essential characteristics of obligations under Philippine law include the following:

Juridical Tie (Vinculum Juris) – This is the legal bond that ties the obligor (the one who has a duty) to the obligee (the one who has a right to demand fulfillment).
Active Subject (Obligee) – The person entitled to demand the performance of the obligation.
Passive Subject (Obligor) – The person who is bound to perform the obligation.
Object or Prestation – The conduct required to be done or not done, which can be:
- To give – Deliver or transfer ownership of an object.
- To do – Perform an action.
- Not to do – Abstain from a certain act.
Cause or Juridical Reason – The reason behind the obligation, whether contractual, delictual, quasi-contractual, or arising from law.

II. Sources of Obligations

Under the Civil Code (Art. 1157), obligations can arise from:

Law – When the obligation is imposed by law itself.
Contracts – Obligations arising from agreements that the parties bind themselves to.
Quasi-Contracts – Arising from certain lawful, voluntary, and unilateral acts that create obligations on one party in favor of another.
Acts or Omissions Punishable by Law (Delicts) – Arising from crimes or civil liabilities from criminal actions.
Quasi-Delicts (Torts) – Arising from fault or negligence not criminal in nature but causing damage to another.

III. Effects of Obligations

A. When Obligation is to Give a Determinate Thing

The obligor must deliver the specific item agreed upon and is responsible for its care with diligence of a good father of a family (ordinary diligence).
Rights of the creditor include possession, fruits, and accessories, and preservation of the property.
If the obligor fails to deliver, he may be liable for damages due to delay or breach.

B. When Obligation is to Give an Indeterminate or Generic Thing

The obligor must deliver a thing of the quality and type specified but can choose within the agreed-upon class or description.
The obligor is responsible only if the thing has perished due to his fault or delay.

C. When Obligation is to Do or Not to Do

To Do – The obligor must perform as agreed, and failure to comply may require specific performance or damages.
Not to Do – The obligor must abstain from a certain act, and any violation may result in the obligation being undone or liability for damages.

IV. Breach of Obligations and Remedies

The Civil Code provides remedies for breach of obligations:

Demand for Performance – The creditor may demand the specific fulfillment of the obligation.
Substitute Performance or Repair – In obligations to do or deliver, another person may fulfill the obligation at the obligor's expense.
Damages – When specific performance is not possible, the creditor may demand damages.

V. Kinds of Breach

Mora (Delay)
- Mora Solvendi – Delay by the debtor in fulfilling the obligation.
- Mora Accipiendi – Delay by the creditor in accepting the performance.
- Compensatio Morae – Both parties delay, nullifying delays on either side.
Negligence (Culpa)
- Culpa Contractual – Negligence arising from breach of contract.
- Culpa Aquiliana – Negligence arising from quasi-delicts.
- Culpa Criminal – Negligence in criminal actions.
Fraud (Dolo) – Intentional and malicious non-compliance that results in damages, obligating the obligor to cover compensatory damages.
Fortuitous Events – Incidents beyond control, which excuse non-performance, provided they meet certain criteria:
- The event must be unforeseen or unavoidable.
- The event must render compliance impossible.
- No contributory negligence from the obligor.

VI. Extinguishment of Obligations (Art. 1231)

The following are ways in which obligations can be extinguished:

Payment or Performance – Fulfillment of the obligation as agreed.
Loss of the Thing Due – Applies only to obligations to deliver a determinate thing, when loss is due to fortuitous events.
Condonation or Remission of the Debt – Voluntary forgiveness or release from the obligation by the creditor.
Confusion or Merger – Occurs when the qualities of creditor and debtor unite in the same person.
Compensation – Mutual extinguishment of debts between two persons.
Novation – Substitution of a new obligation for the old one, extinguishing the original obligation.

VII. Liability for Damages

In case of breach, damages are awarded based on the following categories:

Actual or Compensatory Damages – To cover loss or injury.
Moral Damages – To compensate for physical suffering, mental anguish, and similar harm.
Nominal Damages – Awarded to recognize the right violated, even if no substantial loss occurred.
Temperate or Moderate Damages – Awarded when actual damages cannot be proven with certainty.
Exemplary Damages – Imposed by way of example or correction for the public good.

VIII. Summary of Key Principles

Good Faith and Fair Dealing – Obligations are expected to be performed in good faith.
Requisites for Demanding Performance – The creditor must comply with certain conditions before demanding performance.
Prohibition on Waivers in Advance – Rights and remedies arising from fraud or liability cannot be waived in advance.
Interpretation of Obligations – Contracts and obligations are interpreted according to their spirit, rather than strictly by literal wording, especially where ambiguities exist.

This overview encapsulates the nature and effects of obligations under Philippine civil law, highlighting legal principles and remedies available in various scenarios of non-performance or breach. The Civil Code serves as the primary guide in resolving disputes and providing recourse for both obligors and obligees, ensuring that obligations are honored or remedied in accordance with Philippine legal standards.