Chapter 4

• Obligation


  A legal duty that compels someone (debtor) to give, do, or not do something for another person (creditor)
• Four Elements of an Obligation

  • Active Subject (Creditor)
  • Passive Subject (Debtor)
  • Object or Prestation
  • Juridical Tie (Vinculum)
• Obligations of the Debtor

  • Obligations to Give a Specific Thing
  • Obligations to Do
• Sources of Liability (Damages)

  • Fraud
  • Negligence
• Kinds of Obligations

  • Pure vs. Conditional
  • Obligations with a Period
  • Alternative vs. Facultative Obligations
  • Joint vs. Solidary Obligations
  • Divisible vs. Indivisible Obligations
  • Obligation with a Penal Clause
• Secondary Classification of Obligations under the Civil Code

  • Unilateral and bilateral obligations
  • Real and personal obligations
  • Civil and natural obligations
  • Legal, conventional, and penal obligations
• Sources of Obligations

  • Law
  • Contracts
  • Quasi-contracts
  • Acts or omissions punishable by law
• Ways Obligations are Extinguished

  • Payment or Performance
  • Loss of the Thing Due
  • Condonation or Remission of Debt (Forgiveness)
  • Confusion (Merger) of Creditor and Debtor Rights
  • Compensation
  • Novation
• Contract


  An agreement between two people where one person agrees to give something or perform a service for the other
• Breach of contract


  An act of breaking the terms set out in a contract
• Elements of a Contract

  • Consent
  • Object Certain
  • Cause of Obligation
• Characteristics Of Contracts


  • Mutuality of Contracts
  • Autonomy of Contracts (Freedom of Contract)
  • Relativity of Contracts
  • Consensuality of Contracts
  • Obligatory Force of Contracts
• Consumer Contract


  A legally binding agreement between a seller and a consumer for the sale of goods, digital content, or the supply of services (with or without goods)
• Unique Features Of Consumer Contracts

  • Form of the Contract
  • Contract Terms
  • Price Gouging
  • Acceleration Clauses
• Types of Contract Invalidation

  • Void
  • Voidable
• Classification of Contracts in Relation to Other Contracts:

  Preparatory: Creates conditions for another contract (e.g., partnership for a future construction project).

  Principal: Stands alone and fulfills its purpose independently (e.g., sale of a car).

  Accessory: Depends on another existing contract (e.g., mortgage securing a loan).
• Classification of Contracts as to its Perfection:

  Consensual: Perfected by agreement only (e.g., sale of a book).

  Real: Requires both agreement and delivery of the object (e.g., loan of money).
• Classification of Contracts as to its Form:

  • Common (Informal): No specific form required (e.g., loan agreement).
  • Special (Formal): Requires a specific form (e.g., donation of property).
• Classification of Contracts as to its Purpose:

  Transfer of ownership (e.g., sale)

  Conveyance of use (e.g., lease)

  Rendition of services (e.g., employment contract)
• Classification of Contracts as to its Subject Matter:

  Things (e.g., sale of a house)

  Services (e.g., legal representation)
• Classification of Contracts as to its Nature of Obligation:

  Unilateral: Creates an obligation for only one party.

  Bilateral: Creates obligations for both parties.
• Classification of Contracts as to its Cause (Reason for Entering the Contract):

  Onerous: Both parties benefit (e.g., purchase of goods).

  Gratuitous: One party benefits without giving anything in return (e.g., gift).
• Classification of Contracts as to its Risk:

  Commutative: Value exchanged is certain at the time of the contract (e.g., rent).

  Aleatory: Value exchanged is uncertain at the time of the contract (e.g., insurance).
• Classifications of Contracts as to its Name or Governing Law:

  Nominate: Has a specific name and legal regulations (e.g., lease).

  Innominate: Lacks a specific name and may not have specific legal regulations