Elements of Obligation

Elements of Obligation An obligation has the following essential elements: 

Parties - the actors involved in an obligation: 

active subject (creditor/obligee) - one who demands the fulfillment of an obligation.



passive subject (debtor/obligor) - one who has the duty to fulfill an obligation.



Prestation - the conduct to be performed by the passive subject for the active subject.



Juridical Tie (efficient cause) - the relation that binds the parties to an obligation.

Example: Under a contract of sale, D agreed to deliver a book to C for Php1000. 

C is the active subject



D is the passive subject



the delivery of the book is the prestation



the contract of sale is the juridical tie that binds X and Y.

Suppose X had already delivered the book but Y has not yet paid for it.In this case, X becomes the active subject and Y is the passive subject. The active subject has the right to go to court in case of non-performance by the passive subject. The passive subject should hence comply with the obligation to avoid civil action against him.

Sources of Obligation An obligation can arise from: 

Law - when there is an enforcement of law itself; the obligation cannot be presumed, and should be expressly or clearly provided for in the law in order to demandable;;[2] such as the obligation of income earning persons to pay taxes demandable according to the National Internal Revenue Code.



Contract - when there is a meeting of the minds between the parties; the obligation have the force of law and should be complied with in good faith ;[3] such as the contract of sale of a book for Php1000.



Quasi-contract - when there is no meeting of the minds between parties, but one party benefited at the expense of the other party; there is an obligation to pay for compensation so that no one shall be unjustly enriched or benefited at the expense of another.[4] 

Negotiorum gestio - if one (the officious manager) voluntarily takes charge of the agency or management of another person's property on his behalf without his consent or authority ;[5] such as the obligation to reimburse the expenses incurred by someone who voluntarily saved your abandoned house from fire.



Solutio indebiti - if one received something that does not rightfully and legally belong to him;[6] such as the obligation to return a money received by mistake.



Delict - when there is a civil liability resulting from criminal offense; should be governed by the penal laws;[7]such as the obligation of a thief to return the money he had stolen.



Quasi-delict - when there is fault or negligence that causes damage on another, there being no prior meeting of the minds between the parties; there is an obligation to pay for the damage done ;[8] such as the obligation of a driver to pay for the damages he caused to another due to negligence.

Effects of Obligation The duties of the debtor in the delivery of a determinate thing, which is identified by its individuality: 

deliver the thing itself.



preserve or take care of the thing due 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.[9]



deliver the fruits of the thing from the time the obligation to deliver it arises .[10]



deliver the accessions and accessories of the thing, even though they may not have been mentioned.[11]

in the delivery of a generic thing, which is identified by its class/type: 

deliver the thing which is neither superior nor inferior quality .[12]

The debtor is also liable for damages in case of non-performance or breach of obligation by reason of delay, fraud, negligence or contravention of the tenor.[13]

The remedies of the creditor in case of breach of obligation in the delivery of a determinate thing: 

demand specific performance or fulfillment of the obligation by the debt (if it is still possible).[14]



demand rescission or cancellation of the obligation (in certain cases) .[15]

in case of breach of obligation in the delivery of a generic thing: 

demand the delivery of the thing which is neither superior nor inferior quality [12] at the expense of the debtor.[16] This can be performed by a third party.

In either case, the creditor has a right to recover damages.[13] The other remedies can be demanded in addition to this right.

Kinds of Obligation The primary classification of obligations according to the peculiarities of the prestation: 

Pure obligation - performance is not subject to any condition, and can be immediately demandable.[17]



Conditional obligation - performance is subject to a condition, and can only be demandable upon the happening of an event .[18]



Obligation with a period - performance is subject to a period, and can on;y be demandable when that period expires .[19]

according to the number prestations: 

Simple obligation - there is only one prestation.



Compound obligation - there are two or more prestations. 

Conjunctive obligation - there are several prestations and all of them can be performed separately.



Disjunctive obligation - only one of the several prestations can be performed. It may be alternativeor facultative.

according to the number of parties: 

Individual obligation - there is one debtor and one creditor.



Collective obligation - there are two or more debtors and two or more creditors. 

Joint obligation - the prestation is divided among each debtor and/or the demand for it is divided among each creditor .[20]



Solidary obligation - the prestation may be performed by any one of the debtors, and/or its entire compliance may be demanded by any one of the creditors.[21]

according to divisibility/indivisibility of the prestation: 

Divisible obligation - the prestation can be partially performed.



Indivisible obligation - the prestation cannot be partially performed .[22]

according to the value of the prestation: 

Principal obligation - the main/principal prestation that is essential and from which the accessory obligation/s arise.



Accessory obligation - the secondary/accessory prestation that should be performed in connection with the primary obligation. 

Obligation with a penal clause - the accessory prestation imposes a penalty that shall substitute the indemnity for damages and the payment of interests in case of noncompliance to the principal prestation . [23]

The secondary classification of obligations according to the involvement of the parties: 

Unilateral obligation - only one party is bound to perform a prestation.



Bilateral obligation - both parties are bound to each other in performing their respective prestations. 

Reciprocal obligation - one party is bound to perform a prestation in exchange for the other party's performance .[15]

according to the nature of the obligation 

Civil obligation - has legal basis; give a right of action to compel its performance.[24] 

Legal obligation - arises from laws.[2]



Conventional obligation - arises from contracts with the force of the law .[3]



Penal obligation - arises from delicts and criminal offences .[7] (not to be confused with the 'obligation with a penal clause' which is an accessory obligation)



Natural obligation - has no legal basis; does not give a right of action to enforce its performance but is based on equity and natural law, and should be voluntary.[24]

according to the nature of the prestation: 



Personal obligation - the prestation is to do or not to do an act: 

Positive obligation - to do an act



Negative obligation - not to do an act

Real obligation - the prestations is to give or deliver a thing: 

Determinate obligation - to deliver a determinate thing.



Generic obligation - to deliver a generic thing.



Limited generic obligation - to deliver a thing confined to a particular class/kind.

Obligations may have multiple classifications, but not with contradictory characteristics.

Extinguishment of Obligation main article: Extinguishment of Obligation

An obligation can be extinguished by :[25] 

payment or performance - the delivery of a thing, or the doing of an act or not doing of an act for the fulfillment of an obligation .[26]



the loss of the thing due - the determinate thing is lost or destroyed without the fault of the debtor, and before he has incurred in delay .[27]



the condonation or remission of the debt - the gratuitous renunciation by the creditor of his right against the debtor with the latter's acceptance .[28]



the confusion or merger of the rights of creditor and debtor - the characters of creditor and debtor are merged in the same person .[29]



compensation -  the simultaneous balancing of two obligations wherein two persons are reciprocally debtors and creditors of each other .[30][31][32]



novation - the creation of a new and different obligation through the total or partial modification of an old obligation that it substituted .[33][34]



annulment - the invalidation of a voidable contract by a court action on the grounds of incapacity to give consent, mistake, violence, intimidation, undue influence, and fraud.[35]



rescission - the revocation, cancellation, or repeal of a contract and the return of the parties to the positions they would have had if the contract had not been made.[15]



fulfillment of resolutory condition .[36]



prescription - the loss of certain rights upon the lapse of time .[37]

In addition, other causes are: 

happening of a fortuitous event.[38]



arrival of resolutory period.[39]



impossibility of fulfillment of the obligation .[40]



death of a party in case the obligation is purely personal .[41]



compromise, by making reciprocal concessions .[42]



mutual desistance or withdrawal (mutuo disenso) .[43]

Resources General References: Websites: Citations: 1. ↑ Civil Code, Article 1156 2. ↑ 2.0 2.1 Civil Code, Article 1158 3. ↑ 3.0 3.1 Civil Code, Article 1159 4. ↑ Civil Code, Article 2142 5. ↑ Civil Code, Article 2144 6. ↑ Civil Code, Article 2154 7. ↑ 7.0 7.1 Civil Code, Article 1161 8. ↑ Civil Code, Article 2176 9. ↑ Civil Code, Article 1163 10. ↑ Civil Code, Article 1164 11. ↑ Civil Code, Article 1166 12. ↑ 12.0 12.1 Civil Code, Article 1246 13. ↑ 13.0 13.1 Civil Code, Article 1170 14. ↑ Civil Code, Article 1165, par. 1 15. ↑ 15.0 15.1 15.2 Civil Code, Article 1380 16. ↑ Civil Code, Article 1165, par. 2 17. ↑ Civil Code, Article 1179

18. ↑ Civil Code, Article 1181 19. ↑ Civil Code, Article 1193 20. ↑ Civil Code, Article 1208 21. ↑ Civil Code, Article 1207 22. ↑ Civil Code, Article 1125 23. ↑ Civil Code, Article 1226 24. ↑ 24.0 24.1 Civil Code, Article 1423 25. ↑ Civil Code, Article 1231 26. ↑ Civil Code, Article 1232 27. ↑ Civil Code, Article 1262 28. ↑ Civil Code, Article 1270 29. ↑ Civil Code, Article 1275 30. ↑ Civil Code, Article 1278 31. ↑ Civil Code, Article 1279 32. ↑ Civil Code, Article 1290 33. ↑ Civil Code, Article 1291 34. ↑ Civil Code, Article 1292 35. ↑ Civil Code, Article 1390 36. ↑ Civil Code, Article 1271 37. ↑ Civil Code, Article 1106 par.2 38. ↑ Civil Code, Article 1174 39. ↑ Civil Code, Article 1193, par.2 40. ↑ Civil Code, Article 1266 41. ↑ Civil Code, Article 1311, par.1 42. ↑ Civil Code, Article 2028 43. ↑ Saura Import and Export Co., Inc v. DBP; G.R. No. L-24968 (1972)