BOOK

IV, TITLE I: OBLIGATIONS • Not foreseen by Civil code ;no express

Chapter 2: Nature & Effects of Obligations provision
• When there is a specific pen, how do I deliver?
INTRODUCTION o By giving that specific pen – no delay
• Important to know the requisites and sources • If the debtor fulfills the debt in accordance
of an obligation with the law or contract – strictly agree to give
• Not left to the debtor as how it is fulfilled; the obligation on the part of the debtor. The
should abide by procedures duty of the creditor is a prestation “to do” – to
• HOW –how do you fulfill the obligation – ways accept the obligation and release the debtor
you are required to fulfill the obligation from the juridical tie.
• CLASSIFIED BASED ON THE OBJECT OF • DELAY
PRESTATION o delay of debtor and creditor
• Prestation- to give, to do or not to do o mora accipiendi – if debtor fulfills
• Personal Obligation obligation with the law or agreement,
o Do – positive obligation CREDITOR IS BOUND TO ACCEPT AND
o Not to do – negative obligation RELEASE THE DEBTOR OF THE
• Real Obligation JURIDICAL TIE
o Specific/determinate – unique, one of o Article 1256 – If the creditor to whom
a kind tender of payment has been made
o Generic/indeterminate – referring to a refuses without just cause to accept it,
class or genus the debtor shall be released from
o To determine, ask if the object in responsibility by consignation of the
relation to the effect of loss of the thing or sum due.
thing on the obligation • How should the debtor fulfill an obligation?
To determine if generic or specific, iff it is lost, would o Deliver the thing specified
it extinguish the obligation because it is impossible? o The law gives the process that the
Ø NO – generic – regardless of how many times debtor has to go through
you lost it o Pilitin – if di tanggapin otherwise delay
Ø YES – specific – obligation extinguished if it is on the creditor
lost There is onLY ONE way to deliver a specific thing.
The genus of a thing can never perish. Ø If she refuses to accept it, then there is a
Ø No longer on 1170 – not delivery but payment cause for damages.
of damages
SPECIFIC GENERIC LIMITED • If I owe you 50,000 pesos, I paid 25,000 pesos
GENERIC first, can you reject it? Yes.
PRINCIPAL Art. 1244- Art. 1246 • If I pay you 50,000 pesos, accept? Yes
1 way – to - 2 ways o Ways to deliver?
give o Art. 1235
SUPPLEMENTAL Art. 1163 – NA o Art. 1430
to do o If only 25,000 , accept but tell you’d
Accessories, Art. IBID still pay the balance
accessions, 1166,1164 o If I pay you 100,000 pesos, but I owe
fruits you only 50,000 pesos, will you reject
Ask to deliver NA Art. 1165 it? Can I compel you to reveive it? YES.
(2) But cannot compel the creditor to
LIMITED GENERIC OBLIGATION deliver something superior.

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 o Art. 1246 – nothing that say debtor o If released from any care , contrary to
cannot receive more public policy – allowing the debtor to
• 2 ways to deliver: commit negligence without sanctions
1. effect delivery of same genus or value o DOAGFOAF for generic? NO.
2. deliver something superior at the option
of the debtor (if creditor refuses without • PURPOSE OF ART. 1163:
cause, liable for delay and damages) o To protect the specific thing; it only
ARTICLE 1163 – “also” – most important word in the applies to specific things
provision o It is protected to ensure the efficacy of
• the also provides another obligation – to take performance of principal – put to knot
care of the thing the principal obligation
• to do – to take care of the thing o does not apply to generic – no casue
• once there is an obligation to deliver, he is of action on negligence on generic obli
also obliged to take care ; if the thing is lost, because it may be replaced
you won’t be able to fulfill the obligation to • You asked a boy to watch your care. What
give. standard of care?
ARTICLE 1172/1173 o Just to watch – not defend the thieves
• negligence – not absence of diligence or care who are trying to seize it – simple duty
but ABSENCE of diligence by time, place, o Own car – you will protect, doagfoaf
persons of that object
• provides the certain standards of care ACCESSIONS
• know what standard is required of the debtor • Principle: owner also owns the accessories
– If not fulfilled and the thing to deliver is lost, and accessions
debtor is negligent – Art. 1170 – pay damages • Deliver also because there is a transfer of
• If art. 1163 is not fulfilled – 1172,1173,1170 ownership
shall apply • Stereo, keys, vroom – accessories of the car –
• If the original obligation is extinguished, it attached for the maximization of the use of
gives rise to a new obligation to pay due to his the principal
failure to abide by the to do of Art. 1163 – due • Fruits
care. • Produced thereby
• Art. 441: natural, civil, industrial
3 STANDARDS OF CARE • Not only from trees
1. Diligence of a good father of the family • Savings/deposit: interest – civil
(DOAGFOAF) – expected standard of care – • Detached
owner of a thing shall exert effort to care for • If obli to deliver – art. 1164
the obligation • When to deliver?
2. Simple Diligence 1. Time to deliver according to the law, quasi
3. Extraordinary care contract, delict, or quasi delict
Ø if the law or stipulation of parties provide for 2. Contract –upon agreement of the parties –
the standard of care, that shall prevail upon the perfection of the contract
Ø Eg: art. 1733- Common carriers require How do you exclude such accessories?
extraordinary care; if DOAGFOAF is used, it’s • Remove it
negligent and shall be a cause for damages • Expressly exclude it from the beginning
Ø In the absence of stipulations or laws, Art. o once it is attached, they’re considered
1163 will apply; may be applied to all accessories. If not mentioned,
occasions presumed included.
Ø Parties may stipulate only simple care. • Art. 1537 – when a contract is perfected
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 o Concept of: o Acquire real right
o Offer – determined and complete o Before delivery, personal right
o Accept – unconditional
o Where the obli to deliver arises PERSONAL RIGHT
DALMATIAN EXAMPLE • Enforceable only against a party
• I’ll sell you a Dalmatian, gave birth to 101 • I’ll give you this notebook. If I give to
dalmatians, no mentioning if pregnant. May someone else, may you get it from him? No.
buyer ask to deliver puppies? only to the person. There is no real right
o Puppies are fruits
o NO because it is not the time of the Principle of Equity and Justice
obligation to deliver it arises • Art. 1164/1166 – does not apply to generic
• QUALIFY: because statement of facts not clear • Art. 1165(2) – not another of performing an
o Dalmatian gives birth BEFORE – not obligation
included o Remedial provision
o Dalmatian gives birth AFTER perfection o Solution of failure of debtor to fulfill
– yes deliver the obligation
• Exception: even if the fruits are produced after o Cannot use this unless proven that the
perfection, the fruits may not be delivered as debtor refuses to deliver
well. o EXHAUSTION of effect against debtor –
• General rule: Even if a contract is perfected, Art. 1246
no need to deliver fruits. o Does not apply to specific obligations
• SUSPENSIVE CONDITION because only principal debtor can
o I’ll deliver you my Dalmatian on deliver
12/25/2016 – Contract perfected • Theory of Pauli Exclusion
NOW. o No two places can occupy a space
o Dalmatian gave birth on 10/15/2016 – single space at the same time
give baby Dalmatians on 12/25? NO – DELAY
because supensive condition not met, • Must be demanded
only if after 12/25 • To incur legal delay:
o Need to wait for the arrival of the term o Obli is due and demandable
• Article 1537 – general rule – absence of o No performance of obligation
suspensive condition/term – immediately o Obligee demands judicially or
demandable extrajudicially
o No fulfillment
REAL RIGHT • Default is simple negligence
• Enforceable against the whole world – my
eyeglasses- anti-Fencing Law ART. 1169 (2)
• Delivery under Civil Code – Art. 1497-1501
1. Actual – physical • Even when there is no demand, the debtor
2. Constructive may be liable.
a. Legal forms • Can sue without demand.
b. Traditio symbolica
EXCEPTIONS TO THE RULE:
c. Traditio longa manu
1. WHEN STIPULATED BY THE PARTIES
d. Traditio brevi manu
• When it expressly stated that no
e. Tradition constitutum
demand is necessary, it cannot be
possessorium
presumed or implied.
• Symbolic delivery

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 • “No demand necessary” should be good faith, demand would be useless. (Eg:
stated Bankruptcy, debtor denies the obli)
• In regard to providing demand, you *IN ALL OTHER CASES, DEMAND IS NECESSARY.
need proof to show you asked demand
= effect it in writing = write a demand ARTICLE 1169 (3) : COMPENSATIO MORAE
letter • Delay of one of the parties in fulfilling
2. WHEN THE LAW PROVIDES an obligation
• Example: paying taxes • Example: buyer-seller
3. WHEN TIME IS AN IMPORTANT MOTIVE
• Time is of the essence When does buyer-seller have a cause of action?
• Wedding gown and seamstress 1. When the obligations are both due and
example : consider if couturier can demandable
deliver the gown on time for your 2. One of them has already performed the
weding obligation incumbment upon him
• If she cannot deliver, continue? YES. 3. Buyer/Other party failed to fulfill obligation
Dramatize your anxiety ; no need to *NOTE: SOLAR HARVEST V. DAVAO CARTON CORP
demand ; go file a suit JULY 26, 2010 – GR NO. 176868
• Show proof that time is of the essence • In reciprocal obligations, delivery of
4. WHEN DEMAND WOULD BE USELESS obligations are often simultaneous
• The debtor has rendered it impossible • Does not apply to cases where payment is
to perform made first before delivery ( online shopping)
How would we know if demand is useless? • No demand is necessary ; additional exception
• Find the reason of the law that needs to the rule
the demand before it can be useless *NOTE: APPLICABLE ONLY TO RECIPROCAL
• Example: there is a contract of loan OBLIGATIONS
between A and B. B asks to borrow
money to be paid on Feb. 18. He canot ART. 1171: FRAUD
pay. He already breached the • Cathay Pacific Case
agreement. There is already a cause of • Dishonesty is inherent
action • There should be an obligation existing
• The receipt of final demand – 3-5 days- • SC: rejected “fraud” of Cathay case
may be extended • Cannot cover errors of mistake and judgments
• There is an impairment of tenor of made in good faith
obligation • Art.1338- obligations arising from fraud – dolo
causante
Why can’t the creditor be immediately sue the • If fraud in Art. 1171, there is dolo incidente-
debtor? there is a cause of action- not only for
• PRESUMPTION OF GOOD FAITH damages but also for specific performance to
• Debtor’s delay or default may have compel delivery
been brought about by his fault or • If fraud in Art. 1338 – there is dolo causante –
negligence but because of other things no action for performance, only remedy
that cannot be foreseen or are aspect is payment for damages
inevitable *NOTE: important to identify what negligence
Ø If after demand, still cannot fulfill, now there committed to know what causes may be instituted
is a ground for damages.
Ø When circumstances would not allow the ART. 1172/1173: NEGLIGENCE:
fulfillment of an obligation, presumption of
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Culpa contractual – committed in the performance of EXCEPTIONS
an obligation when this culpa is committed 1. Stipulated by Parties
• due to negligence ; lacking DOAGFOAF or any 2. Law expressly provides (1165[3], 1268, 1942,
standard of care stipulated by the parties or 2147/48, 2159, 552[2], 2991)
required by law
• if debtor does not meet the standard of care *rewind
and fails to meet it and fulfill the obligation,
he shall be liable for damages. ART. 1165 (3)
• Negligence in the perfomance of an existing 1. Legal Delay – creditor has a right to sue for
obli (culpa contractual) damages
Culpa Aquiliana 2. If debtor promises to deliver some object, to
• Art. 2176 one or more persons of not similar interest, it
• No pre-existeng obligation and the negligent constitutes bad faith
act results to the obligation Ø will never be able to perform such obligation
• Know the distinction of this and culpa contract in delivery
• Both of them involves fault or negli. Diff: Ø no intentions of effecting a delivery to any
existence of pre-existing obli
NECESSARY: Prudence and care in all our human ART. 1168
actuations; be cautious in our human relations • to do
Culpa Criminal • no to do
• Art. 365 RPC If he does not do the obli to do, can he compel
• Not included in the test performance? NO.
Questions: • Not allowed to ask for specific perofmrance
Ø Is there liable for damages in culpa aquiliana? • Tantamount to involuntary servitude that
Ø What are the sources? violates Art. III Sec. 18 of the Consti
Ø Tips: always make a qualification – up to you • Remedies:
to make the presentation- always answer “it 1. Sue for damages
depends” 2. Ask another to perform the obligation at
Example: Vehicular accident. Taxi cab example in the expense of the debtor.
Jurado notes If poorly done, have it undone. NOT by the obligor,
• Note : facts of question are limited to but of someone else.
accidents. Thus, always make a qualification. 1. may also sue for damages
Only liability thru negligence ; may be 2. ask another to undo it at the expense of the
negligent but did not lead to damage or injury debtor
Cases: Meralco v. Ramoy, Areola v. Santos
NOT TO DO
ART. 1174: FORTUITOUS EVENTS • you just don’t do it
• Valid defense • it will NEVER incur delay
• 3 exceptions to the rule • Remedies:
• general rule: no liability o Undo – cannot compel the same
• inevitability : reason why the obligation was person because of involuntary
not rendered servitude
• Check Caguioa book o Ask a third party to undo it
FORTUITOUS EVENTS: o File for damages
• Refer to acts of God and Acts of Man *NOTE: No cause of action for specific performance
• No substantial difference with force majeur – for to do and undo a performance of not to do
just spelling
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ART. 1176 demandable. X paid Y only 3.5 million pesos. It was
• So-called misplaced provision accepted by Y, happily without reservations or
• Refers to extinguishment objections. However, after a few days, Y collects the
• PRESUMPTION of the extinguishment of the difference. A suit was filed against X, will Y be able to
obligation get the balance?
DISPUTABLE INNOCENCE – not conclusive ; may ANSWER:
dispute by showing proof
Ø Interest of loan – if principal payment done
without interest and accepted by creditor
without complaint on interest, presumed that ART. 1178 : Rights transmissible
the interest had already been paid. • Except : when law prohibits, nature of the
Ø Installments- backlogs which have not yet obligation, agreement of parties.
been paid ; debtor pays sufficient only for a
current installment and creditor accepts
without complaint ; presumed paid for arrears
and current
*NOTE: Art. 1431: Estoppel
CONCLUSIVE INNOCENCE – check De Leon Book

WHY???
Ø It is based on Estoppel
Ø His representation tells you that you are not
the only one ( cheater bf)
Ø Your representation is conclusive upons you
and cannot deney against me
Ø May also be a conclusive presumption
Art. 1956 :for interest to be enforceable, must be in
writing.
• No more interest If not in writing
• Interests should adhere to a certain form =
certain contracts
• May the principal recover interest? NO.
ART. 1176 ONLY APPLIES IF THERE IS COMPLIANCE IN
ART. 1956

Art. 1235
• Obligation is deemed extinguished
• Conclusive presumption
• If not yet fulfilled and there is proof, no longer
recoverable because of estoppel ( may appear
in MT)
• Problem: if there is an agent who shall pay
interest and did not pay, Art. 1235 applies.

MIDTERM QUESTION:
X borrowed from Y 5 million pesos. X agrees to have a
10% interest when the obligation is due and
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