Nature and Effect of Obligations THE OBLIGATION TO DO AND NOT TO DO (Simplified for Business Law Students) Atty. Glenn Mar P. Acas, CPA September 2020 OBLIGATION TO DO (positive personal obligation) The primary duty of the debtor is to perform the obligation to do in a proper manner, according to its terms If the debtor performs the obligation to do properly to the satisfaction of the creditor, then we have no problem Problematic situations: 1. The debtor fails to perform an obligation to do. 2. The debtor performs an obligation to do but contrary to the tenor thereof. 3. The debtor performs an obligation to do but in a poor manner. RIGHTS OF THE CREDITOR IN AN OBLIGATION TO DO (Positive Personal Obligation) 1. If the debtor fails to perform an obligation to do, the creditor has the RIGHT; a. To have the obligation performed, if possible, by another at the expense of the debtor, and b. To recover damages. 2. If the debtor performs an obligation to do poorly or contrary to the tenor thereof, the creditor has the RIGHT: ‘a. To UNDO what has been done, at the expense of the debtor, and b. To recover damages. Note: SPECIFIC PERFORMANCE cannot be ordered in case the debtor fails to perform an obligation to do because this may amount to involuntary servitude which is prohibited under the Constitution (Art. M, Sec. 18[2)) OBLIGATION NOT TO DO (negative personal obligation) The primary duty of the debtor is to abstain from doing an act. RIGHTS OF THE CREDITOR IN AN OBLIGATION NOT TO DO (Negative Personal Obligation) If the debtor performs the prohibited act, the creditor has the RIGHT; a, To UNDO what has been done, if stil possible, at the expense of the debior, and b. To recover damages.