B.

Nature and Effects of Obligations

1. Kinds of Prestation
A. To give
a) specific thing
· to preserve the thing (Art. 1163)
· to deliver the accessions and accessories (Art 1166) • to
deliver the fruits (Art. 1164, par. 1)
· to deliver the
thing itself
(Art. 1244)
b) generic thing (Art. 1246)
B. To do (Art. 1244)
C. Not to do (Art. 1244)

2. Breach of Obligation
A. Concept
Song Fo v. Hawaiian Philippines, 47 Phil. 821
(1928) Velarde et al. v. Court of Appeals, 361 SCRA
56 (2001) Angeles v. Calasanz, 135 SCRA 323
(1985)
Delta Motor Corporation v. Genuino, 170 SCRA 29 (1989)
Vermen Realty v. Court of Appeals, 224 SCRA 549 (1993)

B. Modes of Breach
· Delay or mora (Art. 1169)
i. mora solvendi

Cetus Development v. Court of Appeals, 176 SCRA

72 (1989) Aerospace Chemical Industries v. Court of
Appeals, 315 SCRA 92 (1999)
Santos Ventura Hocorma Foundation v. Santos,
441 SCRA 472 (2004)
Vazquez v. Ayala Corporation, 443 SCRA 231(2004)
Abella v. Francisco, 55 SCRA 447 (1931)
dela Cruz v. Legaspi, 98 SCRA 43 (1955)

ii. mora accipiendi (See also 1268)

Villaroel v. Manila Motor Co., Inc., 104 Phil. 926
(1958)

iii. compensation morae

Central Bank v. Court of Appeals, 139 SCRA 46
(1985)
 · Fraud or dolo (Art. 1171)
dolo incidente and dolo causante
Woodhouse v. Halili, 93 Phil. 526
(1953) Geraldez v. Court of Appeals
(1994)

· Negligence (Art. 1172, 1173)

culpa v. dolo
culpa aquiliano v. culpa contractual
standard of care required

Gutierrez v. Gutierrez, 56 Phil. 177 (1932)

Vasquez v. Borja, 74 Phil. 560 (1944)
de Guia v. Manila Electric Corporation, 40
Phil 706 (1920)
US v. Barias, 23 Phil 434 (1912)
Sarmiento v. Spouses Cabrido, 401 SCRA
122 (2003)
Crisostomo v. Court of Appeals, 409 SCRA 528
(2003)

· Contravention of the tenor (Art. 1172)

Chaves v. Gonzales, 32 SCRA 547 (1970)

Telefast v. Castro, 158 SCRA 445 (1988)
Arrieta v. NARIC, 10 SCRA 79 (1964)
Magat v. Medialdea, 206 Phil 341 (1983)

C. Remedies in case of breach

· Performance
Specific performance (Art. 1165; Section 10, Rule 39,
Rules of Court)
· Substituted performance
o in an obligation to give generic thing (Art. 1165,
par. 2)
o undoing of poor work in an obligation to do (Art.
1167)
 Chaves v. Gonzales, 32 SCRA 547 (1970)
Tanguilig v. Court of Appeals, 266 SCRA
78 (1997)
o undoing in an obligation not to do (Art 1168)

· Rescission (Art. 1191‐1192)

· Damages (Art. 1170)

D. Subsidiary Remedies of Creditor

i. Accion Subrogatoria (Art. 1177)
ii. Accion Pauliana (Art. 1177; 1381, par. 3)
Khe Hong Cheng v. Court of Appeals, 355
SCRA 701 (2001) Siguan v. Lim, 318
SCRA
725 (1999)
iii. Other Specific Remedies (Art. 1652, 1729, 1608, 1893)

E. Fortuitous Event (Art. 1174)

i. Effect: Extinguishment of Liability
· Exceptions to Extinguishment (Art. 1174,
1165 par. 3, 552, 1942, 1979, 2001, 2147)

Juan Nakpil & Sons v. Court of Appeals, 144

SCRA 597 (1986)
Republic v. Luzon Stevedoring Co., 21
SCRA 279 (1967)
Dioquino v. Laureano, 33 SCRA 65 (1970)
Austria v. Court of Appeals, 39 SCRA 527
(1971)
National Power Corporation v. Court of
Appeals, 161 SCRA 334 (1988) Yobido v.
Court
of Appeals, 281 SCRA (1997
Bacolod Murcia Milling v. Court of Appeals,
182 SCRA 24
Philcomsat v. Globe Telecom, 430 SCRA (2004)

F. Usurious Transactions (Art. 1175, 1413, 1961); PD 858; PD

1685; Central Bank Circular 416 Monetary Board Circular No.
905; No. 2209
Eastern Shipping Lines v. Court of Appeals, 234 SCRA
781 (1994) Crismina Garments v. Court of Appeals, 304
SCRA
356 (1999) Keng Hua Products v. Court of Appeals,
286 SCRA 257 (1998) Security Bank v. Regional Trial
Court Makati, 263 SCRA 453 (1996) Almeda v. Court of
Appeals,
256 SCRA 292 (1996) Angel Warehousing v. Chelsea, 23
SCRA 19 (1968) First Metro Investment v. Este del Sol,
369 SCRA (2001)