Civil Law and Land Titles and Deeds › Obligations and Contracts › Obligations › General Provisions

b. Sources of Obligation

Requisites before such custom could be considered a source of right

  • Plurality of acts;
  • Uniformity of acts;
  • General practice by the great mass of the people of the country or community;
  • Continued practice for a long period of time;
  • General conviction that the practice is the proper rule of conduct; and
  • Conformity with law, morals or public policy. (Tolentino, 1987)

Obligation v. Contract

While a contract is one of the sources of obligations, an obligation is the legal tie (vinculum juris) or relations itself that exists after a contract has been entered into.

Hence, there can be no contract if there is no obligation. But an obligation may exist without a contract.

LAW (OBLIGATION EX LEGE)

The law cannot exist as a source of obligation, unless the acts to which its principles may be applied exist.

Once the acts or facts exist, the obligations arising therefrom by virtue of the express provisions of the law are entirely independent of the agreement of the parties. (Manila Trading & Supply Co. v. Saez, G.R. No. 4386)

Obligations arising from law are not presumed and are demandable only when expressly determined in the Civil Code or in special laws. (Martinez v. Martinez, G.R. No. 858)

The Owner Must Always Reimburse the Officious Manager for All Expenses which have Inured for the Benefit or Advantage of the Owner

An Owner Who Enjoys the Advantages of Officious Management Must Reimburse the Officious Manager for Necessary and Useful Expenses under Article 2150

Although the officious management may not have been expressly ratified, the owner of the property or business who enjoys the advantages of the same shall be liable for obligations incurred in his interest, and shall reimburse the officious manager for the necessary and useful expenses and for the damages which the latter may have suffered in the performance of his duties.

The same obligation shall be incumbent upon him when the management had for its purpose the prevention of an imminent and manifest loss, although no benefit may have been derived. (Art. 2150, NCC)

Even if no benefit has been derived but the officious manager takes over to save the property or business from imminent loss, the officious manager should likewise be reimbursed for obligations incurred for the owner's interest, including useful and necessary expenses.

Authorities

  • Manila Trading v. Santos, G.R. No. 43861, 26 September 1938
  • Martinez v. Martinez, G.R. No. 858
  • Tolentino