EXPLAINED

OBLI PART II
NATURE OF OBLIGATIONS
AND ITS EFFECTS
WHAT DO YOU TRULY DESIRE?
What Do You Desire?
DETERMINATE / SPECIFIC
Particularly designated or segregated from
others of the same class; individuality; cannot
substitute with another w/o the consent of the
creditor
EX. I will pay you 500M in exchange for your black
convertible Chevrolet Corvette C1 from 1962 with a
plate number of DVL-666.
INDETERMINATE/GENERIC
Refers only to a class or genus; cannot be
pointed out with particularity; identified only by
species;debtor can give anything of the same
class as long it is of the same kind
EX. If you rescue mazakeen, upon her safe return I
can grant you 1 favor when you want to cash in the
favor.
DUTIES OF DEBTOR IN OBLIGATION
TO GIVE A DETERMINATE THING
1) PRESERVE THE THING – incidental duty to take care of the thing due with
the diligence of a good father of family
• DILIGENCE OF A GOOD FATHER OF A FAMILY - care need to be
exercised by a debtor to deliver/give determinate thing; equated with
ordinary care; diligence of an average person exercises on his
property
EXCEPTIONS
• When law/stipulation of parties requires a different standard of
care (slight/extraordinary diligence).
1) Deliver the fruits of the thing
2) Deliver the accession and accessories
3)Deliver the thing itself
4)Answer for damages in case of non-fulfillment or breach
Is There Another
Standard of Care?

• EXTRAORDINARY DILIGENCE - bound to carry the passengers

safely as far as human care and foresight can provide
• The diligence depends upon the nature of the obligation
• Debtor must exercise diligence to insure that the thing to be
delivered would subsist in the same condition
How About Generic Things?
• To deliver a thing which is of the quality intended by the
parties taking into consideration the purpose of the obligation
• To be liable for damages in case of fraud, negligence or delay
in the performance of an obligation.
WHAT IF THE TREE OF THE
OBLIGATION HAD FRUITS?
Kinds of “Fruits”
• (Art. 441) that the debtor is also obliged to deliver:

• Natural Fruits - They are the spontaneous products of the soil, and the
young and other products of animals. (Art. 442)
• Industrial Fruits - Industrial fruits are those produced by lands of any
kind through cultivation or labor. (Art. 442)
• Civil Fruits -They are the result of a juridical relation such as the rents
of buildings, the price of leases of lands and other property and the
amount of perpetual or life annuities or other similar income. (Art.
442)
When is the Creditor Entitled to
the Fruits?
• Rule: The creditor has personal right (right to ask for delivery)
from the time the obligation to deliver arises.
• But NO real right (right enforceable against the whole world)
until it is delivered; the obligation has been perfected
• Perfection – refers to the birth of contract
THE THINGS THAT WOULD COME
WITH THE OBLIGATION THAT ARE
NOT MUCH TALKED ABOUT.
Accessions Vs. Accessories
• Accessions - everything which is produced
thereby, or which is incorporated or attached
thereto, either naturally or artificially, (Art. 440)
such as those plants sown on a parcel of land
sold to a buyer.
• Accessories - joined to or included in the
principal thing for the latter's better use.
• This not applies to Generic Things
DELAY
#DelayingTactics
MEANING OF DELAY
• Those obliged to deliver or to do something incur
in delay from the time the obligee judicially or
extra-judicially demands from them the
fulfilment of their obligation. In reciprocal
obligations, neither party incurs in delay if the
other does not comply in a proper manner with
what is incumbent upon him. From the moment
one of the parties fulfills his obligations, delay by
the other begins. (Art. 1169, NCC)
KINDS OF DELAY
• 1. Mora Solvendi – default on the part of the debtor/obligor
• a. Ex re – default in real obligations (to give)
• b. Ex personae – default in personal obligations (to do)

• 2. Mora Accipiendi – default on the part of the

creditor/obligee

• 3. Compensatio Morae – default on the part of both the

debtor and creditor in reciprocal obligations
REQUISITES OF DELAY BY
DEBTOR
• 1. Obligation must be due, demandable and liquidated;
• 2. Debtor fails to perform his positive obligation on the date
agreed upon;
• 3. A judicial or extra-‐judicial demand made by the creditor
upon the debtor to fulfill, perform or comply with his obligation;
• 4. Failure of the debtor to comply with such demand. Note: In
reciprocal obligations, the moment one party is ready to
comply with his obligation, delay by the other begins. There is
no need for demand from either party.
EXCEPTIONS:
• Obligation or law declares
• Time is the Essence of the contract
• Demand is useless.
EFFECTS OF DELAY:
1. Mora solvendi
• - debtor is guilty of breach or violation
• - liable to the creditor for interest or damages
• - When to deliver determinate thing, STILL LIABLE in fortuitous event.
2. Mora accipiendi – creditor is guilty of breach; liable for damages by the
debtor; bears the risk of the loss of the thing; debtor is not liable for
interest in case of creditor’s delay; debtor may release himself from the
obligation by the consignation
3. Compensation morae – delay of the obligor cancels the delay of the
obligee and vice versa; no fault or delay on both parties
NOTES:
• There can be delay in to give and to do obligations.
• In reciprocal obligations one party incurs in delay from the
moment the other party fulfills his obligation, while he himself
does not comply or is not ready to comply in a proper manner
with what is incumbent upon him. The general rule is that
fulfillment by both parties should be simultaneous except when
different dates for the performance of obligation is fixed by the
Parties. by the
• Demand is still necessary when the respective dates are to be
fulfilled.
FRAUD AND NEGLIGENCE
FRAUD VS. NEGLIGENCE
FRAUD NEGLIGENCE
DELIBERATE and INTENTIONAL OMISSION of the DILIGENCE bythe nature required
evasion pf the fulfillment of an by the nature of the obligation or public policy and
corresponds with the circumstances, of the time
obligation. and place.

Future fraud CANNOT be waived as it can Negligence CAN be waived EXCEPT if policies
lead to an illusory obligation. requires extraordinary diligence.
2 TYPES OF FRAUD
INCEDENTAL FRAUD/ CASUAL FRAUD/
DOLO INCIDENTE (ART. 117O, NCC) DOLO CAUSANTE (ART. 1338, NCC)

Present during the performance a pre-existing Present during the time of birth or the
obligation. perfection of the obligation.
Purpose is to evade the normal fulfillment of the Purpose is to secure the consent of the other
obligation into a contract
Results in non-fulfillment or breach of Results in the vitiation of consent.
obligation.
Gives rise to a right to the creditor to recover Gives rise to a right of an innocent party annunl
damages from the debtor. the contract.
EXCEPTIONS:

• Obligation or law declares

• Time is the Essence of the contract
• Demand is useless as when obligor has rendered beyond of his
powers to perform.
TEST OF NEGLIGENCE
• The test of Negligence can be determined by this standard:

• If the defendant, in committing or causing the negligent act, had used

reasonable care and vigilance which a man of ordinary prudence
would have employed under the same situation, he is NOT guilty.

• Otherwise, HE IS GUILTY
 A SERIES OF
UNFORTUNATE EVENTS
FORTUITOUS EVENT /
FORCE MAJUERE
• Is one which could not be foreseen, or
which, though foreseen, was inevitable.
(Art. 1174). It may either be:

• Acts of God: If caused by nature

• Act of Man: If caused by humans other than
the obligor.
LOAN, MUTUUM, & USERY
MEANING OF SIMPLE LOAN OR
MUTUUM
• Contract whereby one of the parties delivers to another
money or another consumable thing with the
understanding that the same amount of the same kind and
quality shall be paid
• It involves the return of the equivalent only and not the
identical thing because the borrower acquires ownership
thereof
MEANING OF USURY
•Contracting for or receiving interest in
excess of the amount allowed by law
QUESTIONS?