OBLIGATIONS – CHAPTER 2
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NATURE AND EFFECTS
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.
TYPES OF OBLIGATIONS ACCORDING TO
PRESTATION
1. Real Obligations
- to give specific thing
- to give generic thing
2. Personal Obligation
- Positive (to do)
- Negative (not to do)
SPECIFIC OR DETERMINATE THING
- specific
- identified by its INDIVIDUALITY
- particularly designated
- physically segregated
 when buying something from a
selection and you specifically pick
something then it is physically
segregated from the others
Examples:
- the watch I am wearing
 I am obliged to deliver the watch I
am wearing to Jin
- his dog named “Holly”
 Yoongi bound to deliver Eljeane his
dog ‘Holly’
- the Hyundai Palisade with Plate No.
BTS 0613
 the Hyundai company obliged
themselves to give BTS the
Hyundai Palisade with Plate No.
BTS 0613 as a gift on the success
of their endorsement
GENERIC OR INDETERMINATE THING
- refers only to a class or genus
- cannot be pointed out with particularity
- identified only by its SPECIE
- everything else is generic if it is not
particularly designated or physically
segregated.
Examples:
- a watch
 I am obliged to deliver a watch to
Jin
- a dog
 Yoongi bound to deliver Eljeane a
dog
- a Hyundai Palisade
 the Hyundai company obliged
themselves to give BTS a Hyundai
Palisade as a gift on the success of
their endorsement
- money
 He is obliged to give me 10K
tomorrow
SPECIFIC THING AND GENERIC THING
DISTINGUISHED
Why do we distinguish
- Different things are treated differently
1. Determinate thing – specific / individuality
- debtor cannot substitute it with another
although it’s with the same kind / quality
without the consent of the creditor
Example:
Hobi is obliged to deliver a particular vintage
camera he had to Taehyungie. Hobi cannot
substitute it with another one without
Taehyungie’s consent nor can Taehyungie
require Hobi to deliver another camera without
Hobi’s consent even if it is with the same kind
and value.
2. Generic thing – specie
- debtor can give anything as long as it is
the same kind and quality
- we do not have to take care of it at all as
long as we will deliver (fulfill the
obligation) it with the same kind and
quality because generic can be
substituted
Example:
Jimin obliged himself to deliver a cake on
Yoongi’s birthday.
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 Jimin can deliver any cake since
there is no special request so as
long as it is a cake then it is
acceptable
Joon bound himself to deliver glassware to Jin. It
was shattered into pieces due to his clumsiness.
 Joon is still obliged since generic
can be substituted (genus nunquam
perit – genus never perishes)
DUTIES OF DEBTOR IN OBLIGATION
TO GIVE
1) TO DELIVER A SPECIFIC THING:
A. To deliver the thing which he obliged
himself to deliver
B. To take care of the thing with the proper
diligence of a good father of a family
before delivery (Art. 1163)
- Incidental duty for pending delivery
i. Diligence of a good father of a family
- ordinary care
- an average of diligence a person
exercise over his property
ii. Another standard of care
- If there is a stipulation or demand of the
other party provides for slight or
extraordinary diligence, said stipulation
or law must prevail
iii. Circumstances of the person, time and
place
- as a general rule: no one is liable in
fortuitous events. (Art. 1174)
iv. Reason
- to insure that thing would be delivered is
in the same condition as it is when the
obligation was contracted.
C. To deliver its fruits (Art. 1164)
- its produces/ products/ offspring
ART. 1164. The creditor has a right to the
fruits of the thing from the time the
obligation to deliver it arises. However,
he shall acquire no real right over it until
the same has been delivered to him.
(1095)
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THREE (3) DIFFERENT KINDS OF FRUITS
1. Natural fruits
- products of the earth/soil or animals
Example:
- plants, trees, bushes
- cat – kitten, chicken – chick, duck –
duckling, pig – piglet, horse – foal, rabbit
– bunny, sheep – lamb
2. Industrial fruits
- produced by lands of any kind through
cultivation or labor/human effort
Example:
- corns, crops, sugar canes = they are
produced when a person plant a seed
(human labor)
3. Civil fruits
- derived by virtue of juridical relation/act
Example:
- rentals, interest, price of leases of land
Right of creditor to fruits
- When the obligation to make delivery
arises
 from the time of the ‘perfection of
the contract’ – birth of the contract
or the meeting of minds between
the parties
 even if it’s in suspensive
condition or period and the
price has been paid
Example:
Jin sold his rabbit to Jeongguk for 20K. While
still in the stipulation of Jin the rabbit gave birth.
 Jeongguk is entitled to the bunny
since all the fruits will be given to
him on which the contract was
perfected even if is in suspensive
condition/period if Jeongguk
already paid the price.
PERSONAL RIGHT AND REAL RIGHT
1. Personal right
- right or power of a person to demand
the fulfilment of his obligation (to give, to
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do, or not to do) against a specific
passive subject.
Example:
JK is obliged to deliver a sack of rice to Jin.
 Jin has a right over JK (a specific
person) to deliver (obligation) a
sack of rice. Jin also has a personal
right on the sack of rice as the time
the obligation to deliver arises.
2. Real right
- Right or interest of a person over a
specific thing without a definite passive
subject/against the whole world.
(ownership, possession, mortgage)
- Ownership and other real rights over a
property are acquired and transmitted by
tradition (pamana), or upon delivery
- he shall acquire no real right over it until
the same has been delivered to him
Example:
Hobi is the owner of a land and is legally
registered on his name.
 Hobi’s ownership is a real right
directed against everybody. (siya
lang may karapatan dun kasi sa
kanya yun)
Example scenario (personal right real right):
On October 8, 2020, Yoongi bound himself to
give Jimin his only dog, Holly. This is to be
delivered on October 13, 2020.
 From October 8, 2020, Jimin has a
personal right over the dog since
the obligation to deliver arises.
Then upon delivery on October 13,
2020, he will have a real right over
‘Holly’. Jimin now owns ‘Holly’
ART. 1165. When what is to be delivered
is a determinate thing, the creditor, in
addition to the right granted him by
article 1170, may compel the debtor to
make the delivery.
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If the thing is indeterminate or generic,
he may ask that the obligation be
complied with at the expense of the
debtor.
If the obligor delays, or has promised to
deliver the same thing to two or more
persons who do not have the same
interest, he shall be responsible for any
fortuitous event until he has effected the
delivery. (1096)
REMEDIES OF THE CREDITOR IN
REAL OBLIGATION (TO GIVE)
1. To give determinate thing
a. to compel specific performance
- only the debtor can comply with
the obligation thus the creditor
has the right to compel
- does not mean that he can use
force or violence upon the
debtor
- bring the matter to court and the
court will be one to order action
b. demand rescission (return to each other
what they have received) or cancellation
(in certain cases)
c. to recover damages in case of breach
(Art. 1170)
- payment of damages if it is the
only feasible remedy
2. To give generic thing
a. to ask for performance of the obligation
b. to ask that the obligation be complied
with at the expense of the debtor
- the thing is generic thus it is not
necessary for the creditor to
compel the debtor to make the
delivery
c. to recover damages in case of breach
(Art. 1170)
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D. To deliver the accessories or accessions
even though they were not mentioned
(Art. 1166)
ART. 1166. The obligation to give a
determinate thing includes that of
delivering all its accessions and
accessories, even though they may not
have been mentioned. (1097a)
1. Accession
- additions or improvements upon a thing
- anything attached to the principal thing
either naturally or artificially (magagamit
pa rin principal whether na nadun o wala
yung accession)
Example:
- house and trees on a land
- air-conditioner in a car
- inclusions of an album (daming inclusion
ng BE mygoodness may polaroid bhie)
2. Accessory
- necessary for the perfection/completion
- better use and preservation of the thing
Example:
- key of a house
- key of the car
- album of case
- charger of a phone
Right of Creditor to Accessions/Accessory
- accessory follows the principal (based
on the principle of law)
- excluded when there is a stipulation
- also when selling accessory/accession,
the principal is not included.
 selling of a charger (phone is
not included only the charger)
ART. 1167. If a person obliged to do
something fails to do it, the same shall
be executed at his cost.
This same rule shall be observed if he
does it in contravention of the tenor of
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the obligation. Furthermore, it may be
decreed that what has been poorly done
be undone. (1098)
OBLIGATIONS OF THE DEBTOR
1. Obligations in obligation to do
- Personal obligation can be done by
other or third person at the expense of
the debtor
a. If the debtor fails to do what he is
obliged to do, it will be done at his
expense.
Example:
Yoongi binds himself to repair the ceiling of
Namjoon.
- If Yoongi does not repair the ceiling of
Namjoon, Namjoon may ask Hoseok (third
person) to repair it at the expense of Yoongi.
b. If the work is done in contravention of
the tenor of the obligation, it will be re-
done at debtor‘s expense.
Example:
Yoongi binds himself to repair the ceiling
Namjoon, instead of repairing he painted the
ceiling.
- Namjoon can asked Yoongi to have it done
according to what he said which is to repair
not to paint and if Yoongi refuses, he can
ask Hoseok to perform the obligation at the
expense of Yoongi.
c. If the work is poorly done, it will be re-
done at debtor‘s expense.
Example:
Yoongi repaired the ceiling but it was poorly
done and the ceiling cracks got worsen.
Namjoon may ask Yoongi to redone and if
he refuses, he can ask Hoseok to redone
the ceiling at the expense of Yoongi.
 specific performance cannot be ordered or
asked to anyone due that it may result to
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involuntary servitude, and is prohibited
under our constitution.
 personal qualifications of the debtor are the
motive in the contract thus performance of
others may be different – thus the obligation
may be deemed not performed.
o Remedy – indemnification of
consequential damages
 Example:
JK is a singer and did not comply to appear as a
special guest singer on a singer’s alumni and RM
a rapper was the one who performed. Even if
he’s the best among the best rapper in the world
but the qualification needed as a singer was not
met then the obligation may not be considered
perform.
ART. 1168. When the obligation consists
in not doing, and the obligor does what
has been forbidden him, it shall also be
undone at his expense. (1099a)
2. Obligations in not to do
- Not to do what is forbidden
- To undo what has been done that is
forbidden
- To bear the expenses of having
someone else to undo what has been
done that is forbidden
- To pay damages (Art. 1170)
Example:
Bang Sihyuk bought land from Jin. It was
stipulated that Bang Sihyuk would not build
anything on the land owned by Jin.
But Sihyuk build a fence and a mailbox on a
portion that was owned by Jin. Jin has the right
and can ask Sihyuk to remove those and if
Sihyuk can’t remove those, Jin can ask other
person to remove it but Sihyuk will bear the
expenses.
ART. 1169. Those obliged to deliver or to
do something incur in delay from the
time the obligee judicially or
extrajudicially demands from them the
fulfillment of their obligation.
However, the demand by the creditor
shall not be necessary in order that
delay may exist:
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(1) When the obligation or the law
expressly so declares; or
(2) When from the nature and the
circumstances of the obligation it
appears that the designation of the
time when the thing is to be delivered
or the service is to be rendered was a
controlling motive for the
establishment of the contract; or
(3) When demand would be useless,
as when the obligor has rendered it
beyond his power to perform.
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)
DELAY
 Ordinary delay – failure to perform an
obligation on time
Example 1:
JK obliged himself to deliver his own artwork to
V on September 1. V did not demand to deliver
it.
- If JK did not deliver it on September 1,
he is only in ordinary delay and the
court may presume that V gives him an
extension to deliver the artwork.
 Legal delay / default / mora – failure to
perform an obligation on time which failure
constitute a breach on the obligation.
Example 1.5:
JK obliged himself to deliver his own artwork to
V on September 1. Supposed on September 1,
V demands to deliver it but JK fails to deliver it
on that day.
- JK is on legal delay / default since there
was a demand by the creditor and he
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fails to deliver it causing a breach on his
obligation.
THREE (3) KINDS OF DELAY/DEFAULT
1. Mora solvendi
- delay on the part of the debtor
2. Mora accipiendi
- delay is on the part of the creditor
3. Compensatio morae
- delay of both creditor and debtor
(reciprocal obligations) – no delay
* one of the parties fulfill his
obligation, delay by the other
begins
REQUISITES – MORA SOLVENDI
1. Failure to perform the obligation on the
agreed date
2. Failure to comply with such demand:
a. judicial demand – complaint was filed on
court
b. extrajudicial demand – complaint was made
orally or written
EXCEPTIONS:
1. obligation so provides
- when there is a stipulation between
parties that there is no demand then
there is no delay
2. law declares
- payment of taxes, taxes should be paid
on or before a specific date; otherwise
penalties, charges and etc. will be
imposed without the need of demand by
the government
3. time is the controlling motive
- delivering of cake and balloons on a
particular date for a birthday, delivery of
the car that will be used for a trip, and
etc.
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- this must be fulfilled by the debtor on
the designated time stipulated by the
creditor since the creditor wound no
longer benefit him if delay occurs.
4. demand would be useless
Example:
Vhope’s dog will perform at Jin’s party but the
dog died before the event. The delay would be
useless since it would be impossible for Vhope
to perform his obligation.
5. reciprocal obligations
- compensation morae
Example:
Yoongi is obliged to deliver a set of books to
Namjoon worth 3K. (no agreed date)
* when Yoongi delivers the book
Namjoon is obliged to pay and
vice versa (Namjoon pays Yoongi
delivers) and if one party fulfill the
delay of the other begins.
E. To pay damages if guilty of fraud,
negligence, delay, or contravention of
the terms of the obligation / in case of
breach of obligation (Art. 1170)
ART. 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)
LIABILITY FOR DAMAGES ARISES FROM
1. Fraud (deceit or dolo)
- deliberate or intentional evasion of
the fulfilment of obligation.
- Implies some kinds of malice and
dishonesty (bad faith)
TWO KINDS OF FRAUD
 Causal Fraud (dolo causante)
- fraud in the execution of the contract
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NATURE AND EFFECTS

Example: ART. 1171. Responsibility arising from

Yoongi bought branded wine from Jin but it
was only a false representation on the labels.
- Without the fake labels, Yoongi would
definitely not agree on the contract
with Jin.
fraud is demandable in all obligations.
Any waiver of an action for future fraud
is void. (1102a)
 fraud can be demanded with respect to all
kinds of obligation

 Incidental Fraud (dolo incidente)  fraud is deemed serious and evil

- fraud in the performance of the
obligation
Example:
Jimin obliged himself to deliver Hobi 10
branded mini bags. The mini bags are ready
but before delivering Jimin change 5 mini
bags into cheaper quality to cut cost.
- Jimin did the fraud while performing
the obligation
2. Negligence (fault or culpa)
 fraud may be past or future thus waiver of
an action:
a. for future fraud is void
o as being against the law and
public policy
b. for past fraud is valid
o as an act of generosity and
magnanimity on the part of the
party who is the victim of the
fraud

- Any voluntary act or omission which

prevents the normal fulfilment. (no
bad faith or malice)
3. Delay (mora)
- not fulfilled on time that causes a
breach of the obligation
4. Contravention of the terms of the
obligation
- violation of terms and conditions
stipulated in the obligation
ART. 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)
 the debtor is also liable for damages
resulting from his negligence or culpa.
 when both parties are mutually negligent in
the performance of their obligations, the
fault of one cancels the negligence of the
other (kwits hahaha)

 waiver of action arising from negligence

FRAUD NEGLIGENC
(DOLO) E (CULPA)
intentio Deliberat
no intention
n e
waiver
allowed in
of future Void
certain cases
action
must be presumed
proved clearly from the
proved violation
cannot be
mitigated may be
liability
or reduced
reduced

a. action for future negligence (not fraud)

may be renounced
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NATURE AND EFFECTS

o except when extraordinary

diligence is required