Sources of Obligation | General Provisions | Obligations | OBLIGATIONS AND CONTRACTS

CIVIL LAW > V. OBLIGATIONS AND CONTRACTS > A. Obligations > 2. General Provisions > c. Sources of Obligation

Under Philippine Civil Law, particularly governed by the Civil Code of the Philippines (Republic Act No. 386), obligations are defined as juridical necessities to give, to do, or not to do. The sources of obligation are essential as they form the legal basis for enforceability and accountability. Article 1157 of the Civil Code enumerates the following as the principal sources of obligation:

1. Law (Obligations Ex Lege)

• Definition: Obligations arising directly from statutes or legal provisions.
• Characteristics:
  • Obligations ex lege exist without the need for any contract or agreement.
  • They arise from legal mandates that require or prohibit certain actions.
• Examples:
  • Taxes: Obligation to pay taxes under the National Internal Revenue Code.
  • Environmental Compliance: Duties under environmental laws, like the Clean Air Act.
  • Parental Support: Legal obligation for parents to support their minor children under Article 195 of the Family Code.
• Enforcement:
  • Obligations arising from law are enforceable even if not explicitly stipulated in a contract.
  • Failure to comply can result in administrative, civil, or even criminal penalties.

2. Contracts (Obligations Ex Contractu)

• Definition: Obligations that arise from agreements made between parties.
• Characteristics:
  • A contract is a meeting of the minds where one party binds themselves to give something or render a service.
  • Article 1306 provides that contracts can have the force of law between contracting parties as long as they are not contrary to law, morals, good customs, public order, or public policy.
• Requirements:
  • Consent of the contracting parties.
  • Object certain and defined.
  • Cause of the obligation (lawful purpose).
• Examples:
  • Sales Contracts: An obligation to deliver the agreed-upon goods and to pay the price.
  • Leases: An obligation of the lessor to allow the lessee to use a property, and for the lessee to pay rent.
• Enforcement:
  • Breach of contractual obligations can lead to remedies, including specific performance, damages, or rescission.

3. Quasi-Contracts (Obligations Ex Quasi-Contractu)

• Definition: Arise from lawful, voluntary, and unilateral acts which bind the person to compensate or return something.
• Characteristics:
  • There is no agreement or contract between the parties, but one party is bound in justice and equity to prevent unjust enrichment.
• Types of Quasi-Contracts:
  • Negotiorum Gestio: Managing the affairs of another without authorization, where the manager must act in the best interest of the owner.
    • Example: Caring for a neighbor’s property during a natural disaster without their consent but to their benefit.
  • Solutio Indebiti: Involves the return of something received by mistake, where one is bound to return what was unduly given.
    • Example: Accidental overpayment of a debt must be returned.
• Enforcement:
  • Obligations under quasi-contract are enforced by demanding restitution or compensation for unjust enrichment.

4. Acts or Omissions Punished by Law (Obligations Ex Delicto)

• Definition: Arise from wrongful acts or crimes.
• Characteristics:
  • These obligations come from the civil liability inherent in criminal acts.
  • Civil obligations exist separately from criminal liability, and acquittal in a criminal case does not extinguish civil liability.
• Examples:
  • Damages from Assault: A victim of physical assault may demand damages for medical expenses, pain, and suffering.
  • Damage to Property: Acts of vandalism create an obligation to compensate the owner for repairs.
• Enforcement:
  • Civil obligations from delicts are typically enforced through civil actions alongside criminal proceedings.
  • If the accused is convicted, civil indemnity is often automatic.

5. Quasi-Delicts (Obligations Ex Quasi-Delicto)

• Definition: Arise from acts or omissions that cause damage to another, without contractual relations, due to fault or negligence.
• Characteristics:
  • Governed by Articles 2176 to 2194 of the Civil Code.
  • Requires the presence of fault or negligence but does not necessitate a pre-existing contractual relationship.
  • Establishes liability even when there is no malicious intent, focusing on accountability for harm caused by negligence.
• Elements of Quasi-Delict:
  • Act or Omission by the defendant.
  • Fault or Negligence attributable to the defendant.
  • Damage or Injury suffered by the plaintiff.
  • Causal Connection between the act/omission and the damage.
• Examples:
  • Vehicular Accidents: Causing injury or property damage due to careless driving.
  • Professional Negligence: A doctor's failure to meet the standard of care, resulting in harm to a patient.
• Enforcement:
  • Quasi-delicts are enforced through civil actions where the injured party seeks compensation for damages.

Principles Governing the Sources of Obligation

1. Principle of Restitution:

   • Particularly relevant to quasi-contracts and quasi-delicts, restitution aims to prevent unjust enrichment.

2. Principle of Autonomy:

   • Parties are free to contract as they see fit, provided that the contract is not against the law, public policy, or morals (Article 1306).

3. Fault-Based Liability vs. Strict Liability:

   • Obligations under quasi-delicts typically require fault or negligence.
   • Some legal provisions impose strict liability, particularly in cases of hazardous activities (e.g., torts involving hazardous materials).

4. Presumption of Good Faith:

   • Contracts and quasi-contracts presume parties act in good faith unless proven otherwise, and bad faith can increase liability.

Enforcement and Remedies

Each source of obligation provides for specific enforcement mechanisms:

• Damages: Monetary compensation for loss or injury.
• Specific Performance: Enforcing the exact performance stipulated in contracts.
• Rescission: Canceling a contract due to failure or impossibility of performance.
• Indemnity: In delicts and quasi-delicts, courts award indemnity to restore the injured party’s situation as close as possible to its original state.

Conclusion

Philippine law provides a structured approach to the sources of obligations, addressing various scenarios of human conduct and relationships that give rise to legal obligations. The Civil Code’s framework emphasizes fairness, good faith, and accountability. Understanding these sources is crucial for proper enforcement and equitable resolution in the event of disputes.