ART 1163 Every person obliged to give something is

also obliged to take care of it with the proper diligence

of a good father of a family, unless the law or the
stipulation of the parties requires another standard of
care

Obligation specific or determinate thing

- Particularly designated or physically segregated

- Identified by individuality
-

Generic or indeterminate

- Refers only to class or genus

- no particularity
- identified by its specie

Duties of a debtor to give a determinate thing

1. preserve the thing

- obligor has incidental duty to take care of the thing
with diligence

a. Diligence of good father of a family

- Ordinary care or that diligence over his own
property
b. Another standard of care
- Slight or extraordinary diligence
- If the law or stipulation of the parties provide for
another standard of care the aforesaid must prevail
Ex. Airline company ART 1755
- Parties may agree upon diligence more or less than
that of a good father but is absolute exemption
from liability for any fault or negligence is contrary
to public policy
C
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Responsibility arising from fraud demandable
- Refers to incidental fraud which is employed in the
fulfillment of an obligation
- Damages cannot be reduced by court
Waiver of action for future fraud is void
- Makes obligation illusory
Waiver of action for past fraud
- Act of generosity on the victim
- Renounces right to indemnity of the party entitled
ART 1172 Responsibility arising from negligence in the
performance of every kind of obligation is also
demandable but such liability may be regulated by
courts, according to the circumstances
Responsibility arising from negligence
- No deliberate intention to cause damage
- The court may increase or decrease the damages
recoverable
- When both parties are negligent, the fault of one
may cancel that of the other
Validity of waiver of action arising from negligence
- Action for future negligence may be renounced
except when it requires extraordinary diligence as in
the case of common carriers
- negligence shows bad faith= fraud
Kinds of negligence according to source of obligation
1. Contractual negligence (culpa contractual)
- Negligence in contract resulting to breach
- Not a source of obligation
- Makes debtor liable for damages
2. Civil Negligence (culpa aquiliana)
- Source of obligation between parties not related
- Tort or quasi-dilect
3. Criminal negligence (culpa criminal)
- Resulting in the commission of crime
- Aggrieved party ma choose between Civil Liability
(Art 100 Revised Penal Code) or;
- Quasi delict (Art 2176 Civil Code)
- Prohibited to recover twice
Ex.
Culpa contractual- the horse died before delivery
Culpa aquilana- the horse belongs to B. The negligence
of S results to the death of the horse
Culpa criminal- B can bring an action for reckless
imprudence, however he cannot recover damages
twice. Responsibility for quasi-delict and civil liability
arising from criminal offense cannot be claimed
altogether
Effect of negligence on the part of the injured party
ART 2179 Civil Code
- When the plaintiff’s own negligence is the
immediate cause of injury, he cannot recover
damages
- If his negligence is contributory, the plaintiff may
recover damages
Ex.
a. P jumped of the bus without any warning
therefore the bus company is not liable for
damages
b. P was standing on the running board of the bus,
he was repeatedly warned but to no avail. The
bus swerved to avoid collision throwing P off
the bus. The driver was intoxicated and was
driving recklessly
o P has contributory negligence but the
proximate cause is the negligence of
common carrier. Damages shall be
equitably reduced
c. P lost his balance when the bus rounded a
curve. The bus was travelling at moderate
speed
o P cannot recover damages
ART 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 person, of
the time and place. When the 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, that which is expected of a
good father of a family shall be required
Fault or negligence
Supreme court- the failure to observe protection of the
interests of another person, that degree of care,
precaution and vigilance which the circumstances justly
demand, whereby such other person suffers injury
Factors to be considered
1. Nature of the obligation
- Smoking while carrying inflammable
2. Circumstances of the person
- Guard sleeping while on duty
3. Circumstance of time
- driving without headlights at night
4. circumstances of place
- driving 100 km/hr in super highway
Measure of liability for damages
Damages- signify money compensation awarded to a
party for loss or injury resulting from breach.
- Purpose is to place the innocent party in the same
position he would have occupied if the obligation
had been performed
ART 2201 Civil Code
in contracts and quasi-contracts- obligor who acted in
good faith shall be liable for damages that are natural
and probable consequences of the breach and which
the parties have foreseen
fraud- obligor shall be responsible for all damages
attributed to non performance
Kinds of diligence required
a. That agreed upon by the parties (orally or in writing)
b. That required by law (in the absence of a)
c. Diligence expected of a good father of a family (if a
and b are silent)
ART 1174 Except in cases expressly specified by the
law, or when it is otherwise declared by stipulation, or
when the nature of the obligation requires the
assumption of risk, no person shall be responsible for
those events which could not be foreseen, or which
though foreseen were inevitable
Fortuitious event- event which cannot be foreseen,
though foresee, is inevitable
- Happening independent on the will of the debtor
a. Act of man- independent in the will of the obligor
but not of others. Ex. Robbery,murder
b. Acts of God (majeure)-totally independent will
Kinds of Fortuitous Events
1. Ordinary fortuitous events- common and could
reasonably foresee
2. Extra-ordinar foutuitous events- uncommon and
could not have reasonably foreseen ex.
Pest,earthquake, fire
Requisites of a fortuitous event
1. Independent of the human will or debtor’s will
2. Could not be foreseen ,if foreseen, inevitable
3. Render it impossible for the debtor to comply
with his obligation in a normal manner
4. Debtor must be free from participation in injury
to the creditor
*the absence of any would prevent the obligor from
being exempt from liability
Rules to inability in case of a fortuitous event
- His obligation is extinguished except:
a. When expressly specified by law
o the debtor is guilty of fraud , negligence or
delay or contravention of the tenor of
obligation
ex. The horse was struck by lightning after demand was
made by B, he is guilty of delay. The obligation to
deliver is extinguished and converted to payment of
damages
o the debtor promised to deliver the same
(specific thing) to 2 or more person who do
not have the same interest
o the obligation to deliver a specific thing
arises from a crime
o the thing to be delivered is generic
ex. The debtor can bring another thing of the same kind
b. when declared by stipulation
c. when the nature of obligation requires assumption
of risk
ex. Fire insurance
ART 1175 Usurious transactions shall be governed by
special laws
Simple loan (mutuum)- a contract whereby one of the
parties delivers to another, money or other consumable
thing upon the condition that the same amount of the
same kind quality shall be paid
Usury- receiving interest in excess of the amount
allowed by law for loan or credit
Requisites of recover of interest
1. the payment of interest must be expressly
stipulated
2. agreement must be in writing
3. the interest must be lawful
Central Bank Circular No. 905
- usury is now legally non-existent.
- Parties are free to stipulate interest
- Does not give absolute right to charge iniquitous or
unconscionable interest
Usury law- the rate of interest that shall be charged
shall not be subject to an ceiling
ART 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
Presumption- the inference of a fact not actually known
arising from its usual connection with another which is
known or proved
2 kinds of presumption
1. Conclusive presumption- everyone is conclusively
presumed to know the law
2. Disputable presumption- can be rebutted by
presenting proof
ex. It is presumed that C paid the interest along with the
principal because a receipt was issued by D. normally
payment of interest precedes that of the principal.
E failed to pay rents for Feb and March. In April, E paid
and R issued a receipt for April. It is presumed that Feb
and March had already been paid
When presumptions in ART 1176 does not apply
1. With reservation as the interest
2. Receipt without indication of particular installment
paid
3. Receipt for a part of the principal- such receipt
without mentioning the interest, implies that the
creditor waives his right to apply the payment first
to the interest
4. Payment of taxes
5. Non-payment proven-
ART 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
Remedies available to creditors for the satisfaction of
their claims
1. Exact fulfillment (specific) with right to damages
2. Pursue the leviable property of the debtor
3. After pursuing property of debtor, exercise rights
and bring all the actions to of the debtor ex. Right to
redeem and right to collect from the debtor of his
debtor)
4. Ask the court to rescind or impugn acts or contracts
which the debtor may have done to defraud him
Ex. D could not pay his obligation of P400,000 to C. D
owns a car worth P280 000 and X is indebted to him for
P40,000. Before the due date, D sold his land to Y for
P200 000
Rights granted to C
a. Bring action to collection of P400 000 plus damages
b. Ask for the attachment of D’s car to be sold
c. Ask the court to order X not to pay D so the
payment be made to him
d. Cancel the sale made by D to Y in case he cannot
recover in any other manner
ART 1178 Subject to the laws, all the rights acquired in
virtue of an obligation are the transmissible, if there
has been no stipulation to the contrary
 When obligation is demandable at once

Transmissibility of rights 1. When it is pure

2. When it is subject to resolutory condition
All rights acquired in virtue of obligation are
3. When it is subject to a resolutory condition
transmissible except:
Past events unknown to parties
1. Prohibited by law -
a. By the contract of partnership- 2 or more - Cannot be said to be a condition
persons bind themselves to contribute money - What is contemplated by law is the knowledge to be
to a common fund with the intention of dividing acquired in the future of a past event which is at the
profits moment unknown to parties
b. By the contract of commodatum- one of the
Ex. X won the case for a parcel of land but has not
parties delivers to another something not
received notice. X obliged himself to sell the land to B
consumable so that the latter may return it.
should he win the case
Gratuitous
c. Prohibited by stipulation of the parties- ex. ART 1180 When the debtor binds himself to pay when
Obligation is extinguished upon death his means permit him to do so, the obligation shall be
deemed to be one with a period, subject to the
SECTION 1- PURE AND CONDITIONAL OBLIGATIONS
provisions of article 1197
ART 1179 Every obligation whose performance does Where the duration of period depends upon the will of
not depend upon a future or uncertain event, or upon the debtor
a past event unknown to the parties is demandable at
once Period- is a future and certain event upon the arrival of
which the obligation subject to it either arises or is
Pure obligation- is one which is not subject to any
extinguished
condition and no specific date is mentioned for its
fulfillment and is, therefore, immediately demandable 1. the debtor promises to pay when his means permit
him
Conditional obligation- one whose consequences are
2. others(little by little, as soon as possible, from time
subject in one way or another to the fulfillment of a
to time, at any time I have money
condition
ART 1181 In conditional obligations, the acquisition of
Condition- future and uncertain event, upon the rights, as well as the extinguishment or loss of those
happening of which, the effectivity or extinguishment of already acquired shall depend upon the happening of
an obligation subject to it depends the event which constitutes the condition
Characteristics of a condition
Effect of happening of condition
1. Future and uncertain 1. acquisition of rights
2. Past but unknown - subject to suspensive condition- the acquisition of
Principal kinds of condition right depends upon the happening of the event
- if the suspensive condition does not take place and
Suspensive condition Resolutory condition certain that it will not be fulfilled, the parties would
Condition precedent or condition Condition subsequent
antecedent stand as if the obligation never existed
Fulfillment will give rise Will extinguish an 2. loss of rights already acquired
to obligation obligation - subject to resolutory condition- the happening of
If it does not take place The tie of law is - the event produced loss of rights ex. X bounds to
juridical tie does not consolidated support Y until he graduates college
appear
Until it takes place, the Its effects flow but
obligation is mere hope hovers the possibility of
termination
ART 1182 When the fulfillment of the condition
depends upon the sole will of the debtor, the
conditional obligation shall be void. If it depends upon
chance or upon the will of a third person, the
obligation shall take effect with the provision of this
code
Classification of conditions
1. as to effect
a. suspensive- give rise to the obligation
b. resolutory- extinguishes the obligation
2. as to form
a. express- condition is clearly stated
b. implied- merely inferred
3. as to possibility
a. possible- the condition is capable of
fulfillment, legally or physically
b. impossible- not capable of fulfillment
4. as to cause or origin
a. potestative- depends on will of contracting
parties
b. casual- depends on chance or upon the will of
a third person
c. mixed- partly upon chance and partly upon the
will of a third person
5. as to mode
a. positive- performance of an act
b. negative- omission of an act
6. as to numbers
a. conjunctive- there are several conditions and
all must be fulfilled
b. disjunctive- only one or some must be
fulfilled
7. as to divisibility
a. divisible- susceptible of partial performance
b. indivisible- not susceptible of partial
performance
potestative condition- suspensive in nature and which
depend upon the sole will of the contracting parties
where suspensive condition depends upon the will of the
debtor
1. conditional obligation void
- the potestative condition depends solely upon the
will of the debtor
- cannot be easily demanded; no juridical tie
2. only the condition void
- condition is imposed not on the birth of the
obligation but on its fulfillment
ex. D borrowed 10 000 from C payable within 2
mos. D promised to pay C after D sells his car to
which C agreed. Only the condition is void but not
the obligation to pay
where the suspensive condition depends upon the will of
the creditor the obligation is valid
where resolutory condition depends upon the will of
debtor
- right to repurchase in a sale with pacto de retro
- fulfillment depends on the sole will of the debtor
- the position of the debtor is exactly the same as
that of the creditor when the condition is
suspensive
causal condition- depends upon chance or will of a third
person
mixed condition- partly by chance and partly upon a
third person ex. X obliges himself to repair any damage
to the building after an earthquake if found that
construction defects contributed in any way
*conditional obligations whose fulfillment depends
partly upon the will of the debtor and partly upon the
will of a third person are perfectly valid
ART 1183 Impossible conditions, those contrary to
good customs or public policy and those prohibited by
law shall annul the obligation which depends upon
them. If the obligation is divisible, that part thereof
which is not affected by the impossible or unlawful
condition shall be be valid
The condition not to do an impossible thing shall be
considered as not having been agreed upon.
Refers to suspensive conditions, applies to cases where
impossibility existed at the time the obligation was
formed
2 kinds of impossible conditions
1. physically impossible conditions
2. legally impossible conditions- contrary to law,
morals, good customs, public order
Effect of impossible condition

1. conditional obligation is void

- impossible conditions annul the obligation which
depends upon them
- the obligor knows his obligation cannot be fulfilled
2. conditional obligation valid

negative condition- not to do an impossible thing the

obligation is pure and valid

3. only the affected obligation is void

ex. I will give you 10 000 if you sell my land and a
car if you kill Pedro

4. only the condition void

ex. The condition to kill X is void but the obligation
to pay C is valid