OBLICON REVIEWER

Article 1156 - Definition of Obligation

An obligation is a (judicial necessity) duty to give, do, or not do something.

Article 1157 - Sources of Obligations

There are five sources of obligations:
1. Law: Obligations that the law imposes (e.g., parents must support their children).
2. Contracts: Agreements between people (e.g., you agree to buy a car).
3. Quasi-contracts: Situations where one person benefits from another without a formal
agreement, and fairness demands repayment (e.g., if you accidentally pay someone else's bill).
4. Acts or omissions punished by law (Crimes): When someone commits a crime, they must
compensate for damages.
5. Quasi-delicts: When someone's negligence causes damage to another (e.g., if you break
someone’s window by accident, you have to pay for it).

Article 1158 - Obligations Imposed by Law

“Obligations derived from law are not presumed. Only those expressly determined in this 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 this Book. (1090)”
Some obligations exist because the law requires them, even without a contract.
Example: Parents are obligated by law to care for their children.

Article 1159 - Obligations Arising from Contracts

“Obligations arising from contracts have the force of law between the contracting parties and should
be complied with in good faith. (1091a)”
Contracts must be followed like laws between the parties involved. Once both sides agree, they
are bound to what was promised.
Example: If you sign a contract to rent a house, you must pay rent on time, and the landlord
must provide you with a livable house.

Article 1160 - Obligations Arising from Quasi-Contracts

“Obligations derived from quasi-contracts shall be subject to the provisions of Chapter 1, Title XVII,
of this Book. (n)”
These obligations happen when one person benefits from another without a contract, but
fairness requires repayment.
Example: If a neighbor accidentally repairs your fence, you are obligated to pay for the work
done.

Article 1161 - Obligations Arising from Crimes

“Civil obligations arising from criminal offenses shall be governed by the penal laws, subject to the
provisions of article 2177, and of the pertinent provisions of Chapter 2, Preliminary Title, on Human
Relations, and of Title XVIII of this Book, regulating damages. (1092a)”
When a person commits a crime, they are obligated to compensate for damages.
Example: If someone damages your car during a robbery, they must pay for the repairs.

Article 1162 - Obligations Arising from Quasi-Delicts

“Obligations derived from quasi-delicts shall be governed by the provisions of Chapter 2, Title XVII of
this Book, and by special laws. (1093a)”
If someone causes harm through negligence (without intending to), they must pay for damages.
Example: If you accidentally cause a car accident, you have to pay for the damages to the other
person’s car.

Article 1163 - Duty to Take Care of Specific Things

“Every person obliged to give something is also obliged to take care of it with the proper diligence of
a good father of a family, unless the law or the stipulation of the parties requires another standard of
care. (1094a)”
If the obligation is to give a specific thing (like a particular car or painting), the debtor (the one
obligated) must take care of it like a responsible person.
Example: If you borrow a specific car from someone, you have to take care of that exact car.

Article 1164 - Rights of the Creditor

“The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises.
However, he shall acquire no real right over it until the same has been delivered to him. (1095)”
The creditor (the one owed) has the right to claim the thing owed to them, along with any
benefits or increase in value it gains over time (called "fruits"), once the obligation is due.
Example: If you promise to give someone a cow in a year and the cow has a calf before the
year is up, the creditor has the right to both the cow and the calf.

Article 1165 - Duty to Deliver a Specific Thing

“When what is to be delivered is a determinate thing, the creditor, in addition to the right granted him
by article 1170, may compel the debtor to make the delivery.”

If the thing is indeterminate or generic, he may ask that the obligation be complied with at the
expense of the debtor.

If the obligor delays, or has promised to deliver the same thing to two or more persons who do not
have the same interest, he shall be responsible for any fortuitous event until he has effected the
delivery. (1096)

If you fail to deliver a specific thing, the creditor can demand either the delivery or compensation
for damages. If the debtor destroys or loses the item due to their fault, they must pay damages.

Example: If you’re supposed to deliver a specific car but it gets damaged before delivery, you
might have to pay for the loss.

Article 1166 - Delivery of Accessories

“The obligation to give a determinate thing includes that of delivering all its accessions and
accessories, even though they may not have been mentioned. (1097a)”
When you deliver a thing, you also have to deliver all the accessories or things that come with it,
even if not explicitly mentioned.
Example: If you sell a car, you should include the car’s key, spare tire, and manuals.

Article 1167 - Obligation to Do Something

“If a person obliged to do something fails to do it, the same shall be executed at his cost.”

This same rule shall be observed if he does it in contravention of the tenor of the obligation.
Furthermore, it may be decreed that what has been poorly done be undone. (1098)
If the debtor fails to do what was promised, the creditor can have it done by someone else and
charge the debtor for the cost.

Example: If a builder is hired to construct a house but fails to do so, the homeowner can hire
someone else and ask the builder to pay for it.

Article 1168 - Obligation Not to Do Something

“When the obligation consists in not doing, and the obligor does what has been forbidden him, it
shall also be undone at his expense. (1099a)”
If someone does what they’re not supposed to do, the creditor can have it undone at the
debtor’s expense.
Example: If you agree not to build a fence, but you do it anyway, the other party can demand the
fence be torn down, and you must pay for it.

Article 1169 - Delay in Fulfilling Obligations

Those obliged to deliver or to do something incur in delay from the time the obligee judicially or
extrajudicially demands from them the fulfillment of their obligation.

However, the demand by the creditor shall not be necessary in order that delay may exist:

(1) When the obligation or the law expressly so declare; or

(2) When from the nature and the circumstances of the obligation it appears that the designation of
the time when the thing is to be delivered or the service is to be rendered was a controlling motive
for the establishment of the contract; or

(3) When demand would be useless, as when the obligor has rendered it beyond his power to
perform.

In reciprocal obligations, neither party incurs in delay if the other does not comply or is not ready to
comply in a proper manner with what is incumbent upon him. From the moment one of the parties
fulfills his obligation, delay by the other begins. (1100a)

If the debtor delays fulfilling their obligation, they are liable for damages. However, the creditor
must first demand that the obligation be fulfilled before the debtor can be considered in delay.
Example: If you’re supposed to deliver a product on Monday but deliver it on Friday instead, the
creditor can ask for compensation for any loss caused by the delay.

Article 1170 - Fraud, Negligence, and Delay

“Those who in the performance of their obligations are guilty of fraud, negligence, or delay, and
those who in any manner contravene the tenor thereof, are liable for damages. (1101)”
Anyone who commits fraud (intentional deception), negligence (carelessness), or delays
fulfilling an obligation is liable for damages.
Example: If you intentionally damage a car you borrowed, or if you’re careless and it gets
damaged, you’ll have to pay for the repairs.

Article 1171 - Fraud on the Part of the Debtor

“Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for future
fraud is void. (1102a)”
If the debtor commits fraud in fulfilling an obligation, they are liable for damages.
Example: If you lie about the condition of a car you’re selling, and it breaks down immediately,
you must compensate the buyer.

Article 1172 - Liability from Negligence

“Responsibility arising from negligence in the performance of every kind of obligation is also
demandable, but such liability may be regulated by the courts, according to the circumstances.
(1103)”
If a debtor is negligent, they are still liable for damages, but the amount of negligence is
considered in deciding how much they should pay.
Example: If you are careless while handling someone’s item and it gets damaged, you have to
compensate them.

Article 1173 - What Constitutes Negligence

“The fault or negligence of the obligor consists in the omission of that diligence which is required by
the nature of the obligation and corresponds with the circumstances of the persons, of the time and
of the place. When negligence shows bad faith, the provisions of articles 1171 and 2201, paragraph
2, shall apply.”

If the law or contract does not state the diligence which is to be observed in the performance, that
which is expected of a good father of a family shall be required. (1104a)
Negligence depends on how much care a reasonable person would have used in a similar
situation. If the law or a contract specifies a certain level of care, it must be followed.
Example: If a contract says to store goods in a cool place, and you don’t, you are liable if they
spoil.

Article 1174 - Fortuitous Events (Acts of God)

“Except in cases expressly specified by the law, or when it is otherwise declared by stipulation, or
when the nature of the obligation requires the assumption of risk, no person shall be responsible for
those events which could not be foreseen, or which, though foreseen, were inevitable. (1105a)”
If the failure to fulfill an obligation is caused by unforeseen events beyond the control of the
debtor (like natural disasters), they are not liable for damages.
Example: If a storm destroys the house you were supposed to build, you’re not responsible for
the damage.

Article 1175 - Excessive Interest Rates

“Usurious transactions shall be governed by special laws.”
Usurious (excessively high) interest rates are not allowed. This is to prevent lenders from
charging unfairly high interest on loans.
Example: If someone loans you money with a 100% interest rate, the law does not allow it.

Article 1176 - Presumption of Payment of Interests

“The receipt of the principal by the creditor without reservation with respect to the interest, shall give
rise to the presumption that said interest has been paid.

The receipt of a later installment of a debt without reservation as to prior installments, shall likewise
raise the presumption that such installments have been paid. (1110a)”

If a debtor pays the principal amount without mentioning interest, it’s assumed that any interest
has already been paid.
Example: If you pay off a loan without saying anything about the interest, the lender can’t claim
that you still owe interest.
Article 1177 - Protection of Creditor’s Rights
“The creditors, after having pursued the property in possession of the debtor to satisfy their claims,
may exercise all the rights and bring all the actions of the latter for the same purpose, save those
which are inherent in his person; they may also impugn the acts which the debtor may have done to
defraud them. (1111)”
If the debtor doesn’t fulfill their obligation, the creditor can take legal action to seize the debtor’s
property to satisfy the debt.
Example: If someone refuses to pay a loan, the creditor can go to court to have the debtor’s
assets sold to cover the debt.

Article 1178 - Transfer of Rights

“Subject to the laws, all rights acquired in virtue of an obligation are transmissible, if there has been
no stipulation to the contrary. (1112)”
The rights a person has can be passed on to their heirs, unless the obligation is personal and
can’t be transferred (e.g., painting a portrait).
Example: If you inherit a house, you also inherit the right to collect rent from its tenants.

Article 1179 - Pure Obligations

“Every obligation whose performance does not depend upon a future or uncertain event, or upon a
past event unknown to the parties, is demandable at once.”
A pure obligation is one that does not depend on any condition and is immediately demandable.
Example: If you agree to sell a car for cash, you must deliver the car as soon as the buyer pays.

Article 1180 - Obligations with a Time Period

“When the debtor binds himself to pay when his means permit him to do so, the obligation shall be
deemed to be one with a period, subject to the provisions of article 1197.”
If an obligation is based on a time period, it becomes demandable when the period ends.
Example: If rent is due on the 1st of every month, it becomes demandable on the 1st.

Article 1181 - Conditional Obligations

“In conditional obligations, the acquisition of rights, as well as the extinguishment or loss of those
already acquired, shall depend upon the happening of the event which constitutes the condition.
(1114)”
If an obligation depends on a future event, it only becomes effective when the event happens.
Example: If you agree to sell a house only if a specific project is completed, the sale depends on
that project being finished.

Article 1182 - Impossible or Unlawful Conditions

“When the fulfillment of the condition depends upon the sole will of the debtor, the conditional
obligation shall be void. If it depends upon chance or upon the will of a third person, the obligation
shall take effect in conformity with the provisions of this Code. (1115)”
If the condition is impossible or illegal, the obligation is void.
Example: If a contract requires something illegal, like stealing, it’s automatically invalid.

Article 1183 - When Conditions Depend on Will of Debtor

“Impossible conditions, those contrary to good customs or public policy and those prohibited by law
shall annul the obligation which depends upon them. If the obligation is divisible, that part thereof
which is not affected by the impossible or unlawful condition shall be valid.

The condition not to do an impossible thing shall be considered as not having been agreed upon.
(1116a)”
If the condition depends only on the will of the debtor, the obligation is void.
Example: If a contract says, “I’ll pay you whenever I feel like it,” it’s not valid.

Article 1184 - Positive Conditions (Doing Something)

“The condition that some event happen at a determinate time shall extinguish the obligation as soon
as the time expires or if it has become indubitable that the event will not take place. (1117)”
If the condition requires something to happen within a certain period and it doesn’t happen, the
obligation is void.
Example: If a deal is made to sell a car only if the buyer gets a loan by a certain date, and the
loan is not approved, the obligation is canceled.

Article 1185 - Negative Conditions (Not Doing Something)

“The condition that some event will not happen at a determinate time shall render the obligation
effective from the moment the time indicated has elapsed, or if it has become evident that the event
cannot occur.
If no time has been fixed, the condition shall be deemed fulfilled at such time as may have probably
been contemplated, bearing in mind the nature of the obligation. (1118)”
If the condition is not to do something within a time period, and that time passes without the
condition being violated, the obligation becomes demandable.
Example: If a contract says someone must not sell a house for one year, and they don't, the
condition is fulfilled after one year.

Article 1186 - Voluntary Prevention of Condition

“The condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfillment. (1119)”
If a debtor prevents the condition from happening on purpose, the condition is considered
fulfilled, and the obligation is demandable.
Example: If someone is supposed to buy your house after getting a loan, but they purposely
don’t apply for the loan, you can treat the condition as fulfilled and demand payment.

Article 1187 - Retroactive Effect of Fulfilled Conditions

“The effects of a conditional obligation to give, once the condition has been fulfilled, shall retroact to
the day of the constitution of the obligation. Nevertheless, when the obligation imposes reciprocal
prestations upon the parties, the fruits and interests during the pendency of the condition shall be
deemed to have been mutually compensated. If the obligation is unilateral, the debtor shall
appropriate the fruits and interests received, unless from the nature and circumstances of the
obligation it should be inferred that the intention of the person constituting the same was different.”
When a condition is fulfilled, its effects are considered to have started from the day the contract
was made.
Example: If a deal is conditional upon passing an exam, once the exam is passed, the contract
applies as if it had been in place since the agreement.

Article 1188 - Duties While Waiting for Condition

“The creditor may, before the fulfillment of the condition, bring the appropriate actions for the
preservation of his right.
The debtor may recover what during the same time he has paid by mistake in case of a suspensive
condition. (1121a)”
While waiting for the condition to be fulfilled, both the debtor and creditor must act in good faith,
meaning they should protect each other’s rights until the condition is resolved.
Example: If you’re waiting for someone to get a loan to buy your car, you should keep the car in
good condition in the meantime.
Article 1189 - Loss or Deterioration of Thing While Waiting for Condition
“Article 1189. When the conditions have been imposed with the intention of suspending the efficacy
of an obligation to give, the following rules shall be observed in case of the improvement, loss or
deterioration of the thing during the pendency of the condition:

(1) If the thing is lost without the fault of the debtor, the obligation shall be extinguished;

(2) If the thing is lost through the fault of the debtor, he shall be obliged to pay damages; it is
understood that the thing is lost when it perishes, or goes out of commerce, or disappears in such a
way that its existence is unknown or it cannot be recovered;

(3) When the thing deteriorates without the fault of the debtor, the impairment is to be borne by the
creditor;

(4) If it deteriorates through the fault of the debtor, the creditor may choose between the rescission of
the obligation and its fulfillment, with indemnity for damages in either case;

(5) If the thing is improved by its nature, or by time, the improvement shall inure to the benefit of the
creditor;

(6) If it is improved at the expense of the debtor, he shall have no other right than that granted to the
usufructuary. (1122)”

If the thing is lost or damaged while waiting for the condition, here’s what happens:

- If lost by chance (e.g., a natural disaster), the obligation is canceled.

- If lost due to the debtor’s fault, they must pay damages.
- If damaged by chance, the creditor shares in the loss.
- If damaged by the debtor’s fault, the debtor must compensate for the damage.
Example: If a car being sold under a condition is damaged in an accident caused by the seller,
the seller must fix or compensate for the damage.