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Chapter 1 GENERAL PROVISIONS ARTICLE 1156. An obligation is a juridical necessity to give, to do or not to do Obligation- derived from the Latin word obligation which means tying or binding - Recognized by law by virtue of which one is bound in favor of another to render something -consist In giving a thing, doing a certain act, or not doing a certain act Juridical necessity- in case of noncompliance, the courts of justice may be called upon by the aggrieved party to enforce its fulfillment or, In default thereof, the economic value that It represents. Damages- sum of money given as a compensation for the injury or harm suffered by the creditor or oblige for the violatic of his rights Nature of obligation under the Civil Code Civil obligation. obligation which give to the creditor or oblige a rights under the law to enforce their performance in court of Justice; based on positive law Natural obligation. based on equity and conscience Essential requisites of an obligation Passive subject- bound to the fulfillment of the obligation; he who has a duty Active subject. entitled to demand; he who has a right or prestation- subject matter of the matter, consist in giving, doing, or not doing Juridical or legal tic- efficient cause; binds or connects the parties to the obligation Form of obli partly in wr General rule: the law does not require any form in obligations arising from contracts for their validity or binding force. tion- manner in which an obligation is manifested or incurred; maybe oral, or in writing, or partly oral and Obligation, right, and wrong distinguished (1) Obligation- the act or performance which the law will enforce. (2) Right - is the power which a person has under the law, to demand from another any prestation. (3) wrong (cause of action), according to its legal meaning, is an act or omission of one party in violation of the lega right or rights of another, causing injury to the latter *injury- wrongful violation of the legal right of another Kinds of obligation according to the subject matter. Real obligation- obligation to give Personal obligation- obligation to do or not to do 2 Kinds of personal obligation- 1. Positive personal obligation- obligation to do or to render service 2. Negative personal obligation- obligation not to do or not to give ART. 1157. Obligations arise from: (1) Law; (2) Contracts; (3) Quasi-contracts; (4) Acts or omissions punished by law; and (5) Quasi-delicts. (1089a) Sources of obligations (1) Law. — imposed by the law itself (2) Contracts. — when they arise from the stipulation of the parties (3) Quasi-contracts. — arise from lawful, voluntary and unilateral acts and which are enforceable to the end that nc one shall be unjustly enriched or benefited at the expense of another (4) Crimes or acts or omissions punished by law. — arise from civil liability which is the consequence of a criminal offense (5) Quasi-delicts or torts. — arise from damage caused to another through an act or omission, there being fault or negligence, but no contractual relation exists between the parties sources classified Actually, there are only two (2) sources: law and contracts, because obligations arising from quasi contracts, crime and quas|-delicts are really imposed by law. (see Leung Ben vs. O’Brien, 38 Phil. 182 [1918].) ART. 1158. Obligations derived from law are not presumed. Only those expressly determine: de or in special laws are demandable, and shall be regulated by the precepts of the law which establis what has not been foreseen, by the provisions of this Book. (1090) refers to legal obligations or obligations arising from law. Special Laws- all other laws not contained in the Civil Code. ART. 1159. Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith. (1091a) -speaks of contractual obligations or obligations arising from contracts or voluntary agreements. Contract- meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service. (1) Binding force - as a source of enforceable obligation, contract must be valid anc it cannot be valid if it is against the law. (2) Requirement of e valid contract — a contract is if it is not contrary te law, morals, good customs, public order, and public policy. (3) Breach of contract — takes place when a party fails or refuses to comply, without legal reason or justification, with his obligation under the contact as promised Compliance in good faith — It means compliance or performance in accordance with the stipulations or terms of the contract or agreement. ART. 1160. Obligations derived from quasi-contracts shall be sudject to the provisions of Chapter 1, Title XVII, of this Book. (n) - Obligation arising from quasi-contracts or contracts implied by law Kinds of quasi-contracts (1) Negotiorum gestio - voluntary management of the property or affairs of another without the knowledge ar consent of the latter (2) Solutio indebiti- something is received when there is no right to demand it and it was unduly delivered through mistake. Requisites (a) There is no right to receive the thing delivered; and (b) The thing was delivered through mistake ART. 1161. Civil obligations arising from criminal offenses shall be governed by the penal laws,14 subject to the provisions of Article 2177,15 and of the pertinent provisions of Chapter 2, Preliminary Tille on Hurnan Relations,16 and of Title XVIII of this Book, regulating damages. (10922) Deals with civil liability for damages arising from crimes or delicts. a) Civil llability In addition to criminal liability - every person who Is criminally liable for an act or omission Is also civil liable for damages suffered by the aggrieved party. Criminal liability without civil liability - in crimes, however, which cause no material damage, there is no civil liability to be enforced. (3) Civil liability without criminal liability — a person not criminally responsible may still be liable civilly Scope of civil liability (1) Restitution; (2) Reparation for the damage caused; and (3) Indemnif cation for consequential damages. gS ART. 1162. Obligations derived from quasi-delicts shall be governed by the provisions of Chapter 2, Title XVII of this Book, and by special laws. (1093a) = treats of obligations arising from quasi-delicts or torts. Requisites of quasi-delict Before a person can be held liable for quasi-delict, the following requisites must be present: (1) There must be an act or omission; (2) There must be fault or negligence; 3 There must be damage caus (4) There must be a direct relation or connection of cause and effect between the act or omission and the damage; 3 There is no pre-existing contractual relation between the parties. Crime distinguished from quasi-delict (1) Incrime or delict, there is criminal or malicious intent or criminal negligence, while in quasi-delict, there is only negligence: (2) Incrime or delict, the purpose is punishment, while in quasi-delict, indemnification of the offended party; (3) Crime affects public interest, while quasi-delict concems private intere: (4) Incrime, there are generally two liabilities: criminal and clvil, while In quas!-delict, there Is only clvil llability; S Criminal liability can not be compromised or sctiled by the parties themselves, while the liability for quasi-delic: net with WPS © ffirbesomeromised as any other civil tanitty; and