OBLIGATION & CONTRACTS Art. 1156 - 1161

Obligation & Contracts

By: Pineda

Article 1156

Obligation - An obligation is a juridical necessity to give, to do or not to do.  The term obligation is derived from the Latin word " Obligatio " which means tying or binding. The words " juridical necessity " connote that in case of noncompliance, there will be legal sanctions.

As per Brugi, Obligation is a juridical tie between two persons, by virtue of which one of them, the creditor, has the right to demand of the other, the debtor, a definite prestation.

On the other hand, Manresa defined it as a legal relation established between one party and another whereby the latter is bound to the fulfillment of a prestation which the former may demand of him.

Arias defined obligation is a juridical relation  whereby a person (called the creditor) may demand from another (called the debtor) the observance of determinate conduct, and, in case of breach, may obtain satisfaction from the assets of the latter.

An obligation is nothing more than the duty of a person (called debtor or obligor) to satisfy a specific and demandable claim of another person (called creditor or obligee) which if breached is enforceable in court.

Elements of Obligation

1. Active subject - the one who is demanding the performance of the obligation. It is he who in favor, the obligation is constituted, established or create. He is called the creditor or obligee.

2. Passive subject - the one bound to perform the prestation to give, to do, or not to do. he is called the debtor or obligor.

3. Prestation or object - the subject matter of the obligation which has an economic value or susceptible of pecuniary substitution in case of noncompliance.

4. Efficient cause -  the juridical tie or vinculum by virtue of which the debtor has become bound to perform the prestation.

Right and Obligation

Right is the active aspect, while Obligation is the passive aspect. The concepts of credit and debt are two distinct aspects of unitary concept of obligation,

Prestation

Prestation is not the thing but the particular conduct of the debtor. It may consist in giving, doing or not doing.

1. Obligation to give - consists in the delivery of a movable or immovable thing to the creditor. Eg. Obligations to deliver the thing in sales, deposit, pledge, donation, anti-chresis.

2. Obligation to do -  covers all kinds of works  or services whether physical or mental. Eg. Contract for professional services like painting, modeling & singing.

3.Obligation not to do - consists in the refraining from doing some acts like the obligation of a building proprietor to refrain from committing nuisance through noise, offensive odor, smoke, heat, etc. An obligation not to deliver is included in obligation not to do.

Kinds Of Obligations

(a)  As  to judicial enforceability

1. Civil Obligation - this is an obligation, which if not fulfilled when it becomes due  and demandable, maybe enforced in court through action.

2. Natural Obligation - this is a special kind of obligation  which cannot be enforced in court but which authorizes the retention of the voluntary payment or performance made by the " debtor."

3. Moral Obligation -  this is an obligation which arises not from positive law but from the moral law developed by the church and not enforceable in court. A moral obligation deals with the spiritual obligation  of a person in relation to his God or Church.

(b) As to the subject matter

1. Real obligation - refers to the obligation to give.

2. Personal obligation - refers to the obligation to do or not to do.

(c) As to the number of persons bound to perform

1. Unilateral obligation - kind of obligation where only one of the parties is bound to fulfill a prestation.

2. Bilateral obligation - kind of obligation where both parties are bound to perform a part in the obligation.

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 from the moment of the parties fulfills his obligation. delay by the other party begins.

(d) As to the capability of fulfillment

1. Possible obligation - when the obligation is capable of accomplishment or fulfillment in nature or in law.

2. Impossible obligation - when the obligation is not capable of accomplishment or fulfillment in nature or in law.

(e)  As to susceptibility of partial fulfillment

1. Divisible obligation - when the obligation is susceptible of partial performance.

2. Indivisible obligation - when the obligation is not susceptible of partial performance.

(f) As to their dependance upon one another

1. Principal obligation - this is the main obligation created by the parties.

2. Accessory obligation - this is the secondary obligation created  to guarantee the fulfillment of the principal obligation.

(g) As to the existence of a burden or condition

1. Pure obligation - the kind of obligation which is not burdened with any condition or term.

2. Conditional obligation - the kind of obligation which is subject to a condition.

3. Obligation with a term - the kind of obligation subject to the happening of an event which surely will happen, although the date may not be known as of the moment. The obligation becomes demandable only after the expiration of the term and the obligation terminates upon the expiration of the term.

(h) As to the nature of performance

1. Positive obligation - when the debtor is obliged to give or do something in favor of the creditor.

2. Negative obligation - when the debtor is obliged not to do something, that is, he must refrain from doing something.

(i) As to the nature of creation of the obligation

1. Legal obligation - that obligation imposed by law.

2. Conventional obligation - the obligation established by the agreement of the parties like contracts.

(j) As to the character of responsibility or liability

1. Joint obligation - this is the kind of obligation where each debtor is liable only for a part of the whole liability and each creditor shall belong only a part of correlative rights.

2. Solidary obligation -  this is the kind of obligation where a debtor is answerable for the whole of the obligation without prejudice to his right to collect from his co-debtors the latter's share in the obligation.

(k) As to grant of the right to choose one prestation out of several, or to substitute the first one

1. Alternative obligation - the kind of obligation where the obligor may choose to completely perform one out the several prestation.

2. Facultative obligation - the kind of obligation where only one prestation has been agreed upon, but the obligor may render one in substitution of the first one.

(l) As of the imposition of penalty

1. Simple obligation - the kind of obligation where there is no penalty imposed for violation of the terms.

2. Obligation with penalty - the obligation which imposes a penalty for violation of the terms.

Article 1157

Obligations arise from the following:

(1) Law
(2) Contracts
(3) Quasi-contracts
(4) Acts or omissions punished by law
(5) Quasi-delicts

Illustrations Of The Sources Of Obligations.

1. Obligation arising from Law
2. Obligation arising from Contract
3. Obligation arising from a Quasi-contract
4. Obligation arising from Quasi-delict or tort