CHAPTER 2: Nature and Effect of Obligations Creates the subsidiary obligation to do which is to

care for the thing to ensure the efficacy of the

Determining the manner of fulfilling the prestation
fulfillment of the principal obligation to avoid
of the obligation.
rendering the principal obligation impossible to
Fulfillment on the part of the debtor gives rise to the fulfill.
obligation of the creditor to accept and release the
 Stipulations of the party may agree to a higher
debtor from his obligation.
or less degree of diligence BUT not to none at all
2 Types of Prestation: (Important to classify to know (It violates public policy)
what provisions apply.)
Article 1164. The creditor has a right to the fruits of
Real: To give the thing from the time the obligation to deliver it
arises. However, he shall acquire no real right over it
Personal: To do or not to do
until the same has been delivered to him. (1095)
REAL OBLIGATIONS:
If the principal obligation produces fruits before the
 Classified based on the nature of the object of obligation, who has rights to the fruits?
the prestation:
BEFORE obligation to Creditor has no right
Specific Generic deliver arises
Separated from it class Merely points to a class DURING obligation to Creditor has a right
or genus. It becomes or genus deliver arises
one of a kind or unique AFTER obligation to Creditor has a right
If before fulfillment it Never perishes, deliver arises
gets lost, there is no therefore loss of thing
more possibility of never amounts
When does the obligation to deliver arise?
fulfillment (1244) extinguishment
substitution cannot be because loss of a For contracts: the day when the contract was
imposed by debtor. generic thing does not perfected (1537)
render the obligation
impossible. (1246) XPN: If there is a suspensive Term or Condition from
Loss of the thing You can compel perfection, there is no right of creditor to compel
extinguishes the creditor to accept as delivery. Only when the term arrives or the condition
obligation and gives rise long as same fulfilled shall he have the right to compel delivery.
to an obligation to pay genus/class.
for damages (1170) In such case, not compensation morae but mora
LIMITED GENERIC solvendi governs. Therefore demand is necessary.
If A is obligated to deliver 1 of 5 horses to B and 1 (Solar Harvest v. Davao Corrugated)
of the 5 horses dies, the obligation still subsists
JUS AD Enforce only If a thing is
(makes the obligation not specific) but if all the
REM against debtor transferred to a
remaining horses die, the obligation is
(prior to delivery) person in GF, the
extinguished. (This makes it non-generic)
creditor must run
after the debtor
Article 1163. Every person obliged to give something not the third
is also obliged to take care of it with the proper party in GF
diligence of a good father of a family, unless the law JUS IN Enforce only The creditor can
or the stipulation of the parties requires another REM against the run after the
third party in GF
standard of care. (1094a)
 whole world For Limited Generic:
(after delivery)
If A promises to give B, 1 of 5 cars. 2 have accessories
Anti-Fencing Law: Ignorance of the buyer does not
and 3 don’t. B cannot choose so 1166 is not
exclude him from liability.
applicable.
Article 1165. When what is to be delivered is a
Article 1167. If a person obliged to do something fails
determinate thing, the creditor, in addition to the
to do it, the same shall be executed at his cost.
right granted him by article 1170, may compel the
debtor to make the delivery. This same rule shall be observed if he does it in
contravention of the tenor of the obligation.
If the thing is indeterminate or generic, he may ask
Furthermore, it may be decreed that what has been
that the obligation be complied with at the expense
poorly done be undone. (1098)
of the debtor.
Article 1168. When the obligation consists in not
If the obligor delays, or has promised to deliver the
doing, and the obligor does what has been forbidden
same thing to two or more persons who do not have
him, it shall also be undone at his expense. (1099a)
the same interest, he shall be responsible for any
fortuitous event until he has effected the delivery. Specific performance is not applicable (constitutes
(1096) involuntary servitude)
1165(2) is not a third option but a remedial measure. Damages, fulfilled by another
 Creditor needs to show proof of inability to Not today  undo what has been done.
comply
 Legally impossible – prejudice to third
 This remedy enters into a new agreement
parties in good faith
 This provision cannot apply to specific or limited
 If possible (physically)
generic obligations.
 If not, damages
Article 1166. The obligation to give a determinate
Article 1169. Those obliged to deliver or to do
thing includes that of delivering all its accessions and
something incur in delay from the time the obligee
accessories, even though they may not have been
judicially or extra judicially demands from them the
mentioned. (1097a)
fulfillment of their obligation.
Obligation to deliver the accessions/accessories
However, the demand by the creditor shall not be
despite no mention of it in the contract.
necessary in order that delay may exist:
ONLY FOR SPEICIFC OBLIGATIONS
(1) When the obligation or the law expressly so
Reason for the provision: declare; or
 Law of accession (440) SSS v. Moonwalk “Express phrase”
 Presumption that whoever is the owner of the
Payment of taxes
principal is also the owner of the accession and
accessories (Presumption only) (2) When from the nature and the circumstances of
 The obligation is not just transfer of possession the obligation it appears that the designation of the
but also transfer of ownership. time when the thing is to be delivered or the service
 If there is express stipulation of exclusion of is to be rendered was a controlling motive for the
accession/accessories then this provision will not establishment of the contract; or
apply.
Barzaga v. CA
(3) When demand would be useless, as when the
obligor has rendered it beyond his power to perform.
When debtor denies existence of the obligation.
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)
Case Doctrines:
Lorenzo Shipping Corp v. BJ Marthel – Acceptance of
partial payment is a waivr of creditor of his right to
damages for delay
Pantaleon v. American Express – delay not in
approval/disapproval but in acting on the request
Solar Harvest v. Davao Corrugated
a) Fulfillment of both parties is simultaneous: Failure
of one will result in damages even without demand;
b) Fulfillment of parties not the same time: Mora
Solvendi applies and demand is necessary.
Article 1170. 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)
This is an obligation to give payment for damages.
GROUNDS:
1. Debtor is prevented from fulfilling his obligation
in accordance
2. It resulted to damage/injury to creditor
3. Proof of Fraud, Negligence, Delay, Contravention
of the tenor of the obligation.
(Absent this 1174/ if in GF
Article 1171. Responsibility arising from fraud is
demandable in all obligations. Any waiver of an
action for future fraud is void. (1102a)
Two kinds of Fraud:
1. Fraud in the performance of the obligation
(1171)
2. Fraud in the inducement of a party to a contract
(either dolo causante 1338; or dolo incidente
1334)
In 1171 there is already an existing obligation and the
fraud was used in fulfilling the obligation (for
performance and damages)
*Good Faith errors in judgment not included (Cathay
Pacific v. Sps. Vasquez)
Article 1172. 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)
Article 1173. 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 must have resulted in the debtor’s
prevention from fulfilling its obligation or there
should have been damage or injury.
*It must be the proximate cause
Requisites:
 There must be negligence (absence or lack of
standard of care)
 This negligence resulted to prevention, damage
or injury.
Culpa Contractual and Culpa Aquiliana
If a Bus hits pedestrians causing damage to them as
well as its passengers what is the liability of the bus?
a. Pedestrian (Quasi-Delict) Culpa Aquiliana
b. Passengers (Culpa contractual)
Article 1174. Except in cases expressly specified by Article 1178. Subject to the laws, all rights acquired
the law, or when it is otherwise declared by in virtue of an obligation are transmissible, if there
stipulation, or when the nature of the obligation has been no stipulation to the contrary. (1112)
requires the assumption of risk, no person shall be
responsible for those events which could not be Sample Problems:
foreseen, or which, though foreseen, were
inevitable. (1105a)
GR: If it is the cause for delay, injury, damage then no
liability (Unforeseen or although foreseen is
inevitable)
XPN: Law, Stipulation, Assumption of Risk
Requisites:
1. Event must be independent of the will of the
debtor
2. It must be either unforeseeable or inevitable
3. Must be of such character to render the
obligation impossible to be fulfilled by debtor in
normal means
4. Debtor is free from participation in the
aggravation of the injury resulting to the creditor.
*In GENERIC OBLIGATIONS there is no negligence
only fraud, delay or contravention of the tenor of the
obligation.
Article 1176. 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)
Presumptions in law
Article 1177. 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)