APC Notes

Obligations and Contracts

Chapter 2 – Nature and Effects of Obligations does not become the owner until the specific thing has been
delivered to him. Hence, when there has been no delivery yet,
ART. 1163. Every person obliged to give something is also the proper action of the creditor is not one for recovery of
obliged to take care of it with the proper diligence of a good possession and ownership but one for specific performance or
father of a family, unless the law or the stipulation of the rescission of the obligation.
parties requires another standard of care.
ART. 1165. When what is to be delivered is a determinate
Determinate Thing Indeterminate Thing thing, the creditor, in addition to the right granted him by
Identified by its individuality Identified by its specie. Article 1170, may compel the debtor to make the delivery.
The debtor cannot substitute it The debtor can give
with another although the latter anything of the same class If the thing is indeterminate or generic, he may ask that the
is of the same kind and quality as long as it is of the same obligation be complied with at the expense of the debtor.
without the consent of the kind.
creditor. (Art. 1244) If the obligor delays, or has promised to deliver the same
thing to two or more persons who do not have the same
Duties of the Debtor in Obligation to give a Determinate interest, he shall be responsible for any fortuitous event until
Thing: P A T A D he has effected the delivery.
1. To preserve or take care of the thing due;
2. To deliver the fruits of the thing; Remedies of Creditor in Real Obligation (To GIVE):
3. To deliver its accessions and accessories; • Specific Real Obligation:
4. To deliver the thing itself; and Any of the following:
5. To answer for damages in case of non-fulfillment or 1. Demand specific performance or fulfillment of the
breach. obligation with a right to indemnity for damages;
2. Demand recission or cancellation of the obligation also
Duties of the Debtor in Obligation to give an Indeterminate with a right to recover damages;
Thing:
3. Demand the payment of damages only where it is the
1. To deliver the thing which is of the quality intended by
only feasible remedy.
the parties taking into consideration the purpose of the
obligation and other circumstances (see Art. 1246.);
In an obligation to deliver a determinate thing, the very
2. To be liable for damages in case of fraud, negligence,
thing itself must be delivered. (Art. 1244.) Consequently,
or delay, in the performance of his obligation, or
only the debtor can comply with the obligation. This is the
contravention of the tenor thereof. (see Art. 1170.)
reason why the creditor is granted the right to compel the
debtor to make the delivery.
ART. 1164. The creditor has a right to the fruits of the thing
from the time the obligation to deliver it arises. However, he
It should be made clear, however, that the law does not
shall acquire no real right over it until the same has been mean that the creditor can use force or violence upon the
delivered to him.
debtor. The creditor must bring the matter to court and the
court will be the one to order the delivery.
Kinds of Fruits:
1. Natural Fruits – are the spontaneous products of the
• Generic Real Obligation:
soil, and the young. (all trees and plants on lands
He may ask the performance of the obligation by the debtor
produced without the intervention of human labor)
or by a third person with a right to recover damages in case
2. Industrial Fruits – are those produced by lands of any
of breach of obligation.
kind through cultivation or labor (sugar cane,
vegetables, rice, and all products of lands brought
Paragraph 3 of Art. 1165 gives two instances when a fortuitous
about by reason of human labor)
event does not exempt the debtor from responsibility to deliver
3. Civil Fruits – are those derived by virtue of a juridical
a determinate thing:
relation (rents of buildings, prices of leases of lands)
1. Obligor delays; or
2. Obligor has promised to deliver the same thing to two
Personal Right Real Right
or more persons who do not have the same interest.
Power of a person to demand Interest of a person over a
from another, as a definite specific thing without a
passive subject, the definite passive subject An indeterminate thing cannot be the object of destruction by a
fulfillment of the latter’s against whom the right may fortuitous event because genus nunquam perit (genus never
obligation be personally enforced. perishes)
Binding or enforceable Directed against the whole
against a particular person world Art. 1166. The obligation to give a determinate thing
✓ Definite Active Subject ✓ Definite Active Subject includes that of delivering all its accessions and accessories,
✓ Definite Passive Subject No Definite Passive Subject even though they may not have been mentioned.

Rights of the creditor to the fruits:
By law, the creditor is entitled to the fruits of the thing to be
delivered from the time the obligation to make delivery of the
thing arises. The intention of the law is to protect the interest of
the obligee should the obligor commit delay, purposely or
otherwise, in the fulfillment of his obligation.
The meaning of the phrase “he shall acquire no real right over it
until the same has been delivered to him,” is that the creditor
Accessions – are the fruits of, or additions to, or improvements
upon a thing/principal.
Accessories – things joined to or included with the principal for
the latter’s embellishment, better use or completion.
The general rule is that all accessions and accessories are
considered included in the obligation to deliver a determinate
thing although they may not have been mentioned. This rule is
 APC Notes
Obligations and Contracts

based on the principle of law that the accessory follows the

principal. However, the demand by the creditor shall not be necessary
in order that delay may exist:
Art. 1167. If a person obliged to do something fails to do it, (1) When the obligation or the law expressly so
the same shall be executed at his cost. declares; or
(2) When from the nature and the circumstances of the
This same rule shall be observed if he does it in obligation it appears that the designation of the
contravention of the tenor of the obligation. Furthermore, it time when the thing is to be delivered or the service
may be decreed that what has been poorly done be undone. is to be rendered was a controlling motive for the
establishment of the contract; or
Situations contemplated in Remedies (3) When demand would be useless, as when the
Art. 1167 obligor has rendered it beyond his power to
(1) The debtor fails to a. have the obligation perform.
perform an obligation performed by himself, or
to do; by another unless In reciprocal obligations, neither party incurs in delay if the
personal considerations other does not comply or is not ready to comply in a proper
are involved, at the manner with what is incumbent upon him. From the
debtor’s expense;
moment one of the parties fulfills his obligation, delay by the
AND
other begins.
b. recover damages
(2) The debtor performs an Meaning of Delay:
obligation to do but
The court may order that it 1. Ordinary Delay – merely the failure to perform an
contrary to the terms
be undone if it is still obligation on time.
thereof;
possible to undo what was 2. Legal Delay – failure to perform an obligation on time
(3) The debtor performs an done. which failure, constitutes a breach of the obligation.
obligation to do but in a
poor manner.
Kinds of Delay:
1. Mora solvendi – delay on the part of the debtor to
Can a personal obligation to do be performed by a third
fulfill his obligation by reason of a cause imputable to
person? YES.
him.
2. Mora accipiendi – delay on the part of the creditor
When will it not be considered as fulfilled?
without justifiable reason to accept the performance of
When the personal qualifications of the debtor are the
an obligation; and
determining motive for the obligation contracted.
3. Compensatio morae – delay of the obligors in
reciprocal obligations.
What is the remedy of the creditor in such case?
Indemnification for damages BUT where the obligation can still
Is there a delay in Negative Personal Obligation?
be performed at the expense of the debtor notwithstanding his
NONE. The debtor fulfills his obligation by not doing what has
failure or refusal to do so, the court is not authorized to merely
been forbidden him.
grant damages to the creditor.
Requisites of Delay by the Debtor:
Can a debtor be compelled to fulfill an obligation?
(1) failure of the debtor to perform his (positive) obligation
• Real Obligation to deliver a DETERMINATE THING
on the date agreed upon;
– YES (Art. 1165)
(2) demand made by the creditor upon the debtor to fulfill,
• Positive Personal Obligation – NO. It may amount to perform, or comply with his obligation which demand,
involuntary servitude which, as a rule, is prohibited
may be either judicial (when a complaint is fi led in
under our Constitution. court) or extra-judicial (when made outside of court,
orally or in writing); and
ART. 1168. When the obligation consists in not doing, and (3) failure of the debtor to comply with such demand.
the obligor does what has been forbidden him, it shall also
be undone at his expense. There is no delay if the obligation is not yet due and
demandable.
What is the obligation of the debtor in an obligation not to
do? To abstain from an act. Here, there is no specific The creditor has the burden of proving that demand has been
performance. The very obligation is fulfilled in not doing what made.
is forbidden. Hence, in this kind of obligation the debtor cannot
be guilty of delay. It is incumbent upon the debtor, to relieve himself from liability,
to prove that the delay was not caused by his fault, i.e., there was
Remedies of creditor in negative personal obligation no fraud or negligence on his part.
Possible to be undone • Undo the Act
• Damages
Impossible to undo what was done
either physically or legally or because Action for damages
Effects of Delay:
of the rights of the third persons
Kind of Delay Effects
ART. 1169. Those obliged to deliver or to do something
Mora Solvendi (1) The debtor is guilty of breach of
incur in delay from the time the oblige judicially or extra-
the obligation;
judicially demands from them the fulfillment of their
obligation.

Kind of Delay Effects
(2) He is liable for interest in case of
obligations to pay money or
damages in other obligations. In
the absence of extrajudicial
demand, the interest shall
commence from the filing of the
complaint; and
(3) He is liable even for a fortuitous
event when the obligation is to
deliver a determinate thing.
(Arts. 1165, 1170.)
However, if the debtor can prove
that the loss would have resulted
just the same even if he had not
been in default, the court may
equitably mitigate the damages.
(Art. 2215[4].)
In an obligation to deliver a
generic thing, the debtor is not
relieved from liability for loss
due to a fortuitous event. He can
still
Mora Accipiendi (1) The creditor is guilty of breach
of obligation;
(2) He is liable for damages
suffered, if any, by the debtor;
(3) He bears the risk of loss of the
thing due (see Art. 1162.);
(4) Where the obligation is to pay
money, the debtor is not liable
for interest from the time of the
creditor’s delay; and
(5) The debtor may release himself
from the obligation by the
consignation of the thing or sum
due. (see Art. 1256.)
Compensatio Morae The delay of the obligor cancels out
the effects of the delay of the obligee
and vice versa. The net result is that
there is no actionable default on the
part of both parties, such that as if
neither one is guilty of delay.
If the delay of one party is followed
by that of the other, the liability of
the first infractor shall be equitably
tempered or balanced
by the courts.
If it cannot be determined which of
the parties is guilty
of delay, the contract shall be
deemed extinguished and each shall
bear his own damages. (Art. 1192.)
When demand is NOT necessary to put debtor in delay:
(1) When the obligation so provides;
APC Notes
Obligations and Contracts
* The mere fixing of the period is not enough. The
arrival of the period merely makes the obligation
demandable. Before its arrival, the
creditor cannot demand performance. The obligation
must expressly so declare that demand is not necessary
or must use words to that effect, as for instance, “the
debtor will be in default” or “I will be liable for
damages.”
(2) When the law so provides;
(3) When the time is of the essence;
*The debtor is fully aware that the performance of the
obligation after the designated time would no longer
benefit the creditor.
When the time of delivery is not fixed or is stated in
general and indefinite terms, time is not of the essence
of the contract. In such cases, the delivery must be
made within a reasonable time, in the absence of
anything to show that an immediate delivery was
intended.
It is not necessary for the contract to categorically state
that time is of the essence; intent is sufficient.
(4) When demand would be useless;
(5) When there is performance by a party in reciprocal
obligations.
* The performance of one is conditioned upon the
simultaneous fulfillment on the part of the
other.
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 a party in reciprocal obligations
fulfills or is ready to fulfill his obligation, delay by the
other begins. Where
the parties fix a period for the performance of their
reciprocal obligations, neither party can demand
performance nor incur in delay before the expiration of
the period. The parties may provide different dates for
performance of their respective obligations.
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.
Breach of contract – failure without justifiable excuse to
comply with the terms of the contract.
Grounds for liability for voluntary breach of obligation:
1. Fraud – deliberate or intentional evasion of the normal
fulfillment of an obligation.
As a ground for damages, it implies some kind of malice
or dishonesty and it cannot cover cases of mistake and
errors of judgment made in good faith. It is synonymous
to bad faith in that it involves a design to mislead or
deceive another.
2. Negligence – any voluntary act or omission, there being
no malice, which prevents the normal fulfillment of an
obligation.
3. Delay
 APC Notes
Obligations and Contracts

4. Contravention of the terms of the obligation – law prescribing unjust enrichment - No one shall enrich himself
violation of the terms and conditions of stipulated in the at the expense of another.
obligation.
An action for future negligence may be renounced EXCEPT
Fraud vs. Negligence where the nature of the obligation requires the exercise of
Particulars Fraud Negligence extraordinary diligence.
As to presence There is deliberate There is NO
of intent to intent to cause such intent Kinds of Diligence according to source of obligation:
cause damage damage or injury 1. Contractual Negligence (Culpa Contractual)
As to waiver of Waiver for future Waiver may be - negligence in contracts resulting in their breach. This
liability for void is VOID allowed in kind of negligence is not a source of obligation. (Art.
future acts negligence 1157.) It merely makes the debtor liable for damages in
Evidence Must be clearly Presumed from view of his negligence in the fulfi llment of a pre-
proved, mere the breach of existing obligation resulting in its breach or non-
preponderance of contractual fulfillment. (Arts. 1170-1174, 2201.) It is a kind of civil
evidence is not obligation. negligence if it does not amount to a crime;
sufficient.
2. Civil Negligence (Culpa Aquilana)
Mitigation of Cannot be May be reduced
liability mitigated by the according to the - negligence which by itself is the source of an obligation
courts circumstances. between the parties not formally bound before by any
pre-existing contract. It is also called “tort” or
“quasidelict.”
When negligence is equivalent to fraud:
Where the negligence shows bad faith or is so gross that it 3. Criminal Negligence (Culpa Criminal)
amounts to malice or wanton attitude on the part of the - Negligence resulting in the commission of a crime.
defendant.
Can a creditor recover damages if he is also guilty of
Gross negligence is negligence characterized by want or negligence? It depends if the plaintiff’s own negligence was:
absence of or failure to exercise even slight care or diligence, or • Immediate and proximate cause of injury – he cannot
the entire absence of care, acting or omitting to act on a situation recover the damages
where there is a duty to act, not inadvertently but willfully and • Only contributory and the immediate and proximate
intentionally. cause of the injury being the defendant’s lack of due
care – the plaintiff may recover damages but the courts
ART. 1171. Responsibility arising from fraud is demandable
shall mitigate the damages to be awarded.
in all obligations. Any waiver of an action for future fraud is
void.
ART. 1173. The fault or negligence of the obligor consists in
Waiver of action for future fraud is VOID: the omission of that diligence which is required by the
A contrary rule would encourage the perpetration of fraud nature of the obligation and corresponds with the
because the obligor knows that even if he should commit fraud circumstances of the persons, of the time and of the place.
he would not be liable for it thus making the obligation illusory. When negligence shows bad faith, the provisions of Articles
1171 and 2201, paragraph 2, shall apply.
Waiver of action for past fraud is VALID:
The waiver can be considered as an act of generosity on the part If the law or contract does not state the diligence which is to
of the party who is the victim of the fraud. Here, what is be observed in the performance, that which is expected of a
renounced is the effects of the fraud, that is, the right to good father of a family shall be required.
indemnity of the party entitled thereto.
Negligence - is conduct that creates undue risk or harm to
ART. 1172. Responsibility arising from negligence in the another. It is the failure to observe for the protection of the
performance of every kind of obligation is also demandable, interests of another person, that degree of care, precaution and
but such liability may be regulated by the courts, according vigilance which the circumstances justly demand, whereby such
to the other person suffers injury.
circumstances.
Negligence is a question of fact, its existence being dependent
Courts are given wide discretion in fixing the measure of upon the particular circumstances of each case.
damages in cases of responsibility arising from negligence:
The reason is because negligence is a question which must Diligence – is the attention and care required of a person in a
necessarily depend upon the circumstances of each particular given situation.
case. Moreover, negligence is not as serious as fraud because in
the case of the former, there is no bad faith or deliberate Kinds of Diligence required:
intention to cause injury or damages. The courts, however, may 1. That agreed upon by the parties;
increase the damages. 2. That required by law in the particular case; and
3. The diligence of a good father of a family or ordinary
When BOTH parties to a transaction are mutually negligent diligence.
in the performance of their obligations: ART. 1174. Except in cases expressly specified by the law, or
The fault of one cancels the negligence of the other. Thus, their when it is otherwise declared by stipulation, or when the
rights and obligations may be determined equitably under 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.
Fortuitous event – an extraordinary event which cannot be
foreseen, or which, though foreseen, is inevitable. In other
words, it is an event which is either impossible to foresee or to
avoid.
The essence of a fortuitous event consists of being a happening
independent of the will of the obligor and which happening,
makes the normal fulfillment of the obligation impossible.
Fortuitous Event Force Majeure
Acts of Man Acts of God
Event independent of the Events which are totally
will of the obligor but not independent of the will of
of other human wills every human being
War, fire, robbery, murder Earthquake, flood, rain,
or insurrection shipwreck, lighting,
eruption of a volcano
*In our law, fortuitous evet and force majeure are identical in so
far as they exempt an obligor from liability. Both are
independent of the will of the obligor.
Kinds of fortuitous events:
1. Ordinary fortuitous events – those events which are
common and which the contracting parties could reasonably
foresee; and
2. Extraordinary fortuitous events – those events which are
uncommon and which the contracting parties could not have
reasonably foreseen.
Requisites of fortuitous events:
1. The event must be independent of the human will or at
least of the obligor’s will;
2. The event could not be foreseen (unforeseeable), or if it
could be foreseen, must have been impossible to avoid
(unavoidable);
3. The event must be of such a character as to render it
impossible for the obligor to comply with his obligation
in a normal manner; and
4. The obligor must be free from any participation in, or the
aggravation of the injury to the obligee.
There must be no concurrent or previous negligence or
imprudence on the part of the obligor by which the loss or injury
may have been occasioned.
The loss or injury could have been avoided by human
precaution, the defense of fortuitous event cannot be
successfully invoked. In other words, in order to be exempt from
liability arising from a fortuitous event, there should have been
no human participation amounting to a negligent act.
It should be pointed out that for the purpose of releasing the
debtor from his obligation, the occurrence of the fortuitous event
does not suffice. The impossibility of fulfilling the obligation
must be the direct consequence of the event. If notwithstanding
its occurrence, the obligation can be fulfilled, it will subsist even
if only in part. In order to see whether or not the fortuitous event
produces the impossibility of fulfilling the obligation, the nature
of the obligation must be considered, and according to whether
it be specific or general, etc., it will or will not be extinguished.
Rules as to liability in case of fortuitous event:
General Rule: A person is not responsible for loss or damage
resulting from fortuitous events. Hence, the obligation is
extinguished.
APC Notes
Obligations and Contracts
Exceptions:
(1) When expressly specified by law:
(a) The debtor is guilty of fraud, negligence, or delay,
or contravention of the tenor of the obligation.
(Arts. 1170, 1165, par. 3.)
(b) The debtor has promised to deliver the same
(specific) thing to two or more persons who do not
have the same interest for it would be impossible
for the debtor to comply with his obligation to two
or more creditors even without any fortuitous event
taking place.
(c) The debt of a thing certain and determinate
proceeds from a criminal offense, unless the thing
having been offered by the debtor to the person who
should receive it, the latter refused without
justification to accept it. (Art. 1268.)
(d) The thing to be delivered is generic (Art. 1263.) for
the debtor can still comply with his obligation by
delivering another thing of the same kind in
accordance with the principle that “genus never
perishes” (genus nunquam perit).
(2) When declared by stipulation
(3) When the nature of the obligation requires the assumption
of risk.
Art. 1175. Usurious transactions shall be governed by
special laws.
Simple loan or mutuum – is 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 and
quality shall be paid.
Usury - is contracting for or receiving interest in excess of the
amount allowed by law for the loan or use of money, goods,
chattels, or credits.
Kinds of interest:
1. Simple interest – when the rate of interest is stipulated by the
parties.
2. Compound interest – when the interest earned is upon the
interest due.
3. Legal interest – when the rate of interest intended by the
parties is presumed by law, as when the law mentions
interest but does not specify the rate thereof.
4. Lawful interest – when the rate of interest is within the
maximum allowed by law.
5. Unlawful interest – when the rate of interest is beyond the
maximum fixed by law.

Interest Rules under the Usury Law:
(1) Legal Rate – 12% per annum
The legal rate is 12% (from default until fully paid) if
the transaction is a loan or forbearance of money,
goods, or credits or the judgment involves a loan or
forbearance of money, goods or credits, as prescribed
in Central Bank Circular No. 416 (infra.); otherwise
(e.g., indemnity for damages occasioned by an injury
to person or loss of property), it is only 6% as
provided in Article 2209 of the Civil Code.
(2) Maximum Rate
• 12% - if the loan is secured in whole or in part
by a mortgage upon real estate with a Torrens
Title or by any agreement conveying such real
estate or an interest therein.
• 14% - if the loan is not secured.
• The rate prescribed by the Monetary Board of
the Central Bank.
Under Section 2 (secured loan) of the Usury Law, the taking or
receiving (not mere agreeing) of usurious interest is the act
penalized. Under Section 3 (unsecured loan), the mere
demanding or agreeing to charge excessive interest is also
punishable. In either case, it is only the creditor who is
criminally liable.
NOTE: By virtue of Central Bank Circular No. 905 (Dec. 10,
1982, effective Jan. 1, 1983.) issued by the Monetary Board
under the authority granted to it by the Usury Law (Secs. 1-a, 4-
9, and 4-b thereof.), the rate of interest and other charges on a
loan or forbearance of money, goods, or credit, regardless of
maturity and whether secured and unsecured, that may be
charged or collected shall not be subject to any ceiling
prescribed under the Usury Law. Usury is now legally non-
existent. Interest can be charged as lender and borrower may
agree upon.
According to the Supreme Court, the circular did not repeal or
in any way amend the Usury Law but simply suspended the
latter’s effectivity. Only a law can repeal or amend another law.
While the Usury Law ceiling on interest rates was lifted by C.B.
Circular No. 905, nothing in said circular grants lenders carte
blanche authority to raise interest rates to levels which will
either enslave their borrowers or lead to a hemorrhaging of their
assets.
Liability for legal interests:
(a) For loan or forbearance of money, the rate of interest due
is that stipulated; otherwise, 12% per annum computed
from judicial or extrajudicial demand until fully paid. In
addition, interest due shall earn legal interest (compound
interest) from the time it is judicially demanded.
(b) For other than loan or forbearance of money, the interest
shall be 6% as indemnity at the discretion of the court.
When the amount of the obligation is reasonably
established, the interest shall run from judicial or extra-
judicial demand; otherwise, from the time the amount is
finally adjudged.
(c) Where a judgment awarding a sum of money under (a)
or (b) above, has become fi nal and executory, the legal
rate of interest shall be 12% from such fi nality, based on
the adjudged principal and unpaid interest, until full
satisfaction.
APC Notes
Obligations and Contracts
Requisites for recovery of monetary interest:
1. The payment of interest must be expressly stipulated;
2. The agreement must be in writing; and
3. The interest must be lawful.
A stipulation for the payment of usurious interest is void, that is,
as if there is no stipulation as to interest.
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 – inference of a fact not actually known arising
from its usual connection with another which is known or
proved.
Two Kinds of Presumption:
1. Conclusive Presumption – one which cannot be
contradicted;
2. Disputable Presumption – one which can be
contradicted or rebutted by presenting proof to the
contrary.
When presumptions under Art. 1176 do not apply:
1. With reservation as to interest;
2. Receipt for a part of principal;
3. Receipt without indication of a particular installment
paid;
4. Payment of taxes; and
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 for the creditors for the satisfaction of
their claims: E P E A
1. Exact fulfillment with the right to damages;
2. Pursue the leviable – those not exempt from attachment
under the law – property of the debtor;
3. Exercise all the rights and bring all the actions of the
debtor except those inherent in or personal to the
person of the latter;
4. Ask the court to rescind or impugn the acts or contracts
which the debtor may have done to defraud him when
he cannot in any other manner recover his claim.
ART. 1178. Subject to the laws, all rights acquired in virtue
of an obligation are transmissible, if there has been no
stipulation to the contrary.
General Rule: All rights acquired by virtue of an obligation are
transmissible.
Exceptions:
• Those prohibited by law like the rights in partnership,
agency and commodatum
• Those prohibited by the stipulation of the parties.