a) Diligence of a good father of
ARTICLE 1163
SPECIFIC AND GENERIC
OBLIGATION
Every person obliged to give something
is also obliged to take care of it with
proper diligence of a good father of the
family, unless the parties requires
another standard of care
SPECIFIC/DETERMINATE THING
- It is the specific real obligation
- It refers to thing that are
particularly designated or
physically segregated
- It is unique (only one thing)
Example: The watch I am wearing, the
dog named “whiskey”, and money with a
specific serial number
GENERIC/INDETERMINATE
THING
- It cannot be pointed out with
particularity
- It only refers to a class or
genus.
Example: Bulgari watch, a brown dog,
and the sum of 100 pesos
DUTIES OF DEBTOR IN
OBLIGATION TO GIVE SPECIFIC
THING
1. Preserve or take care of the thing
- It is the debtor’s obligation to take care
of the thing with the proper diligence of
a good father
the family
- Also known as ordinary diligence/
average diligence
b) Another standard of care
- Also known as extraordinary
diligence
- If this exist, debtor is obliged to
follow.
c) Factors to be considered
- Debtor is not liable for the damages
if it is not his fault
2. Deliver the fruits of the thing- see
Art. 1164
3. Deliver the accession and
accessories- see Art. 1166
4. Deliver the thing itself- see Arts.
1163, 1233, 1244
5. Answer for damages in case of
non-fulfillment or breach- see Art.
1170
DUTIES OF A DEBTOR IN
OBLIGATION TO GIVE GENERIC
THING
1. To deliver a thing which is of the
quality intended by the parties
- However, when the quality is not
stated, creditor cannot demand
for a superior quality.
2. To be liable for damages in case of
fraud, negligence, and delay of the
tenor thereof
 ARTICLE 1164
DELIVERY OF THE FRUITS OF
THE THING
The creditor has the right to the fruits
from the time when the delivery arises.
However, he has no real right over it
when delivered.
DIFFERENT KINDS OF FRUITS
1. Natural Fruits
- It is the spontaneous product of
the land or animals
- It has no exerted human labor
Example: Lays of a chicken, all trees
and plants with no human labor.
2. Industrial Fruits
- It is the product of the land with
an exerted effort of human labor
Example: Vegetables, rice, sugar cane
3. Civil Fruits
- Those derived from a virtue of a
juridical relation.
Example; rents of buildings, interest in a
loan
RIGHT OF THE CREDITOR TO
THE FRUITS
- It only applies to specific real
obligations
- Creditor has the right to the
fruits when the delivery arises
to protect his interest of from the
obligor’s delay in fulfilling the
obligation
WHEN IS OBLIGATION TO
DELIVER ARISES?
- Generally, the delivery will start
right after the contract is
perfected
- Unless the obligation is subject to
suspensive period (delay)
- So, obligation to deliver upon the
fulfillment of the condition
(delivery after the delay)
PERSONAL RIGHT AND REAL
RIGHT
1. Personal Right
- Creditor has the power to
demand for the fulfillment of the
obligation to give, to do, and not
to do
- It has a definite active and
passive subject (creditor vs
debtor)
2. Real Right
- Creditor has a right to a specific
thing (ownership)
- It has a definite active subject but
has no definite passive subject
(creditor vs everyone)
OWNERSHIP AQUIRE BY THE
DELIVERY
- Creditor has no real right if it is
not yet delivered because it is no
in your possession yet.
- However, creditor can demand
for specific performance of
rescission (to cancel) of the
obligation, plus the payment for
damages.
ARTICLE 1165
REMEDIES OF THE CREDITOR IN
REAL OBLIGATION
SPECIFIC REAL OBLIGATION
a.) Creditor can demand for specific
performance with a right for
indemnity of damages (demand to
deliver + pay damages)
b.) Creditor can demand rescission
of obligation with a right to recover
damages (cancel the delivery +
recover the damages)
c.) Creditor can demand payment for
damages, if it is the only possible
remedy.
GENERIC REAL OBLIGATION
- It can be performed by a third
person to fulfill the original
debtor’s obligation
- It is not necessary to demand for
specific performance.
EXEMPTION DUE TO
FORTUITOUS EVENT
- Debtor is not liable for damages
when there is a fortuitous event
- However, according to paragraph
3, there are 2 exemptions to the
law
1. When the obligor/ debtor delays in the
delivery
2. when the obligor promised the same
specific thing to two or more persons
with different interests.
Note: Generic thing can be replaced,
so, it is not exempted from liability
(genus nunquam perit = genus never
perishes)
 ARTICLE 1166
DELIVERY OF ACCESSIONS AND
ACCESSORIES
In specific real obligations, all
accessions and accessories must be
delivered, even though it is not
mentioned
ACCESSIONS
- Fruits or addition to the principal
thing
Example: house and trees in a land
ACCESSORIES
- Things included in the principal
thing
Example: house key
Note: Accessions are not necessary
to the principal thing while
accessories must always go with the
principal thing
ARTICLE 1167
POSITIVE PERSONAL
OBLIGATIONS
What has been poorly done should be
undone
SITUATIONS CONTEMPLATED IN
ART 1167
- It refers to an obligation to do to
perform an act or render service.
- It contemplates with 3 situations:
debtor fails to comply with
obligation to do, debtor
complies but contrary to the
terms thereof, debtor complies
with obligation to do but is
poorly done.
REMEDIES OF CREDITOR IN
POSITIVE PERSONAL
OBLIGATION
1. If a debtor fails to comply with the
obligation to do
a.) to have the obligation
performed by himself or a third
person, but with the expense of
the debtor.
b.) to recover damages.
2. If a debtor performs an obligation
to do but contrary to the terms or it is
poorly done.
- It may be ordered by the court
that it be undone if it still possible
to undo what is done, at the
expense of the debtor
REMEDY PERFORMED BY A
THIRD PERSON
1. Compelling Performance by Debtor
Prohibited
- Creditors cannot demand for a
specific performance because it
may amount to involuntary
servitude.
 - Creditors cannot compel to the
debtor to comply with the
obligation to do, however, the
expense for third person to do the
obligation, should be shouldered
by the debtor.
2. Indemnification of Creditor for
Damages
- Personal qualifications of the
debtor are determining the
obligation to do, so, the
performance of the other is
not the same.
ARTICLE 1168
NEGATIVE PERSONAL
OBLIGATIONS
When an obligation not to do has been
done, it shall also be undone, at the
expense of the debtor
REMEDIES OF CREDITOR IN
NEGATIVE PERSONAL
OBLIGATION
- Creditor may demand to the
debtor of undoing the
forbidden, plus the payment
for the damages. (demand to
undo + payment for
damages)
- If not possible to undo,
creditor may demand for an
action for damages caused
by the violation of the debtor.
ARTICLE 1169
DELAY
Those obliged to deliver or to do
something in delay from the time the
oblige judicially/extra judicially demands
from them the fulfillment of their
obligation
MEANING OF DELAY
It is an ordinary delay or a legal delay
1. Ordinary delay
- only a failure to perform an
obligation on time.
- There is no demand set by the
creditor
2. Legal delay
- Failure to perform an obligation,
which failure constitutes a breach
of obligation (delay + breach of
contract)
KINDS OF DELAY
1. Mora solvendi- delay from the debtor
2. Mora accipiendi- delay from the
creditor to accept the obligation
3.Compensatio morae- delay are from
both sides (there is no actionable delay)
Note: there is no delay in negative
personal obligations (obligation not to
do)
REQUISITES OF DELAY BY
DEBTOR
How can you say that there is a legal
delay?
1. There is a failure to perform the
obligation on time
2. When there is a demand made by
the creditor for the debtor to comply
3. when the demand is not complied
by the debtor
Note: delay is considered ordinary when
there is no demand set.
EFFECTS OF DELAY
1. Mora Solvendi
a.) debtor is guilty of breach of
obligations
b.) he is liable for the damages
c.) he is liable for specific things,
regardless of fortuitous events.
2. Mora Accipiendi
a.) creditor is guilty of breach of
obligations
b.) he is liable for the damages of
the debtor
c.) bears the risk of the loss of
the thing
d.) when money is involved,
debtor is not liable for any
interest2
e.) debtor may release from the
obligation
3. Compensatio Morae
- There is no delay on both parties.
WHEN IS DEMAND NOT
NECESSARY TO PUT DEBTOR
ON DELAY?
- When there is no demand, there
is no delay. So, the debtor is not
liable for any damages.
- However, there are exemptions:
1. When the obligation so provides-
- The obligation that is expressedly
provided or declared in the
contract doesn’t need for demand
- So, when you fail to comply,
debtor is automatically on delay
2. When the law so provides
- Penalties and charges are
automatically imposed to the
debtor when the debtor failed to
comply to his obligation to the
law.
3. When time is of the essence
- When the debtor is aware that
the performance of the obligation
after the designated time would
no longer benefit the creditor.
4. When the demand would be
useless
- When there is prior refusal of the
debtor to fulfill the obligation
before the agreed date.
5. When there is performance by a
party in reciprocal obligation
- In case of reciprocal obligations,
the performance of one is
conditioned upon the
simultaneous fulfillment on the
part of the other.
ARTICLE 1170
FRAUD AND NEGLIGENCE
Those who in the performance of
obligations are guilty of fraud,
negligence, or delay and those who
contravene the tenor thereof, are liable
for damages.
GROUNDS FOR LIABILITY (4)
- This is where obligations are
complied, but the debtor is
already guilty of breach or delay.
- Art. 1170 is focused on the
voluntary breach of the obligation
1. Fraud
- Also known as deceit or dolo
- It is to deliberate or intentional
evasion of the normal
fulfillment of the obligation
- It is synonymous to bad faith as it
aims to mislead or deceive
Note: Article 1170 only focuses on
the intentional fraud.
a.) Intentional fraud (dolo
incidente)
- It is committed in the
performance of the
obligation due to contract
- Remedy is to claim for
damages against the
debtor
b.) Causal fraud (dolo
causante)
- Committed in the
execution of the contract
- Remedy is to annul or void
the contract
2. Negligence
- Also known as fault or culpa
- It is the failure of the debtor to
exercise the degree of care
required for the obligation
- There is no bad faith and malice.
3. Delay
- Also known as mora
- Failure to comply with the
obligation on time
- Discussed under Article 1169
4. Contravention of the terms of
obligation
- It is the violation of the terms
and condition in the contract
- It must not be due to fortuitous
event.
FRAUD AND NEGLIGENCE
DISTINGUISHED
1. Fraud is intentional, while
negligence is not intentional
2. Waiver of liability is void in fraud,
while it may be allowed in
negligence
3. Fraud must be clearly proved,
while negligence id presumed
from the contract
4. Liability for fraud cannot be
reduced, while liability for
negligence may be reduced.
Note: Negligence may be considered as
fraud
ARTICLE 1171
FRAUD
Responsibility arising from fraud is
demandable in all obligations. Any
waiver of an action for future fraud is
void.
RESPONSIBILITY ARISING FROM
FRAUD DEMANDABLE
- This article pertains to incidental
fraud
- Fraud can be demanded in all
kinds of obligation
- The court is not given the power
to reduce charges or damages
due to fraud.
WAIVER OF ACTION FOR
FUTURE FRAUD: VOID
- Fraud can be past or future
- Any waiver of an action for future
fraud is void. (no effect, no
waiver)
WAIVER OF ACTION FOR PAST
FRAUD: VALID
- Past fraud can be a subject of a
valid waiver because waiver for
past fraud is considered as an act
of generosity and magnanimity
- Creditor can give up the right
against the debtor as an act of
forgiveness.
ARTICLE 1172
NEGLIGENCE
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 circumstance.
RESPONSIBILITY ARISING FROM
NEGLIGENCE: DEMANDABLE
1. Discretion of court to fix amount
damages
- In negligence, the court may
mitigate or reduce amount of
damages to be awarded
because it is not as serious as
fraud
2. Damages where both parties are
mutually negligent
- When they show mutual
negligence, fault of one may
 cancel the negligence of the
other so no one can be enriched
or benefited.
VALIDITY OF WAIVER OF
ACTION ARISING FROM
NEGLIGENCE
1. Future negligence may be
renounced (creditor giving up his
right) except where the nature
of the obligation requires the
exercise of extraordinary
diligence
2. When negligence shows bad faith
(gross negligence), it is
therefore considered as fraud.
So, any kind of this negligence is
void from waiver of action.
KINDS OF NEGLIGENCE
ACCORSING TO THEIR SOURCE
OF OBLIGATION
1. Contractual negligence
- It is the negligence in contracts
resulting from their breach.
- It is not a source of obligation
but it makes the debtor liable for
damages
- The source of obligation for
this is the contract itself.
2. Civil negligence
- Negligence is the source of the
obligation by not so related
parties who are not formally
bounded by any pre-existing
contract.
- It is also called as quasi-delict
3. Criminal negligence
- It is the negligence resulting from
a crime.
- Criminal negligence that
causes damage may also
produce civil liability
- However, the aggrieved party
should only choose between
criminal or civil action because
double recovery from the same
negligence is prohibited.
EFFECT OF NEGLIGENCE ON
THE INJURED PARTY
- The effect depends of the
circumstances.
- When the negligence of the
plaintiff (injured party) is
immediate and proximate cause
of his injury, then, he cannot
recover damages
- When plaintiff’s negligence is
only contributory, he may recover
damages but the court shall
reduce damages to be awarded.
ARTICLE 1173
FAULT OR NEGLIGENCE
 - It is the failure to observe for the
protection of the interest of
another person, that degree of
care, precaution, and vigilance.
FACTORS TO BE CONSIDERED
- Negligence is a question of fact
because its existence is being
dependent upon the particular
circumstances.
- Negligence is never presumed
but must be proven by the party
who alleges it.
1. Nature of obligation
2. Circumstances of the person
3. Circumstances of time
4. Circumstances of the place
MEASURE OF LIABILITY FOR
DAMAGES
- It is awarded to the person from a
breach of contract
- It purpose is to place the innocent
party in the same position if the
contract is performed
KINDS OF DILIGENCE
1. That agreed upon the parties, orally
or in writing.
- The terms agreed by both parties
should be followed
2. In the absence of the stipulation, that
required by the law in particular case.
- If contract is not present,
diligence required by the law
must be followed.
3. If both contract and law are silent,
then the diligence is expected to be the
good father of a family (ordinary
diligence)
ARTICLE 1174
FORTUITOUS EVENT
No person shall be responsible for those
events which could not be foreseen, or
is inevitable
MEANING OF FORTUITOUS
EVENT
- It is any event which cannot be
foreseen, or if foreseen, is
inevitable
- It is an event that is impossible to
foresee or avoid.
FORTUITOUS EVENT
DISTINGUISHED FROM FORCE
MAJEURE
- It can be either be an act of a
man or an act of God.
1. Acts of man
- It is an event independent of the
will of the obligor, but not of other
human wills.
Example: war, fire, robbery, murder, etc.
2. Acts of God
 - It is also called as the majeure.
- It is an event independent of the
will every human.
Example: Flood, rain, earthquake
REQUISITES OF FORTUITOUS
EVENT
1. Event must be independent of the
human or debtor’s will
2. It could not be foreseen, or if
foreseen, is inevitable
3. Impossible to be performed in
normal manner
4. Debtor must be free from
participation in aggravation of the
creditor
Note: The absence of any of these
requisites will make the debtor liable
for damages.
RULES AS TO LIABILITY IN CASE
OF FORTUITOUS EVENT
- A person is not responsible for
damage resulting from non-
compliance due to fortuitous
event.
- However, there are exemption to
the rule:
1. When expressly specified by the
law
a) Debtor is guilty of fraud,
negligence, delay, contravention
of the tenor
b) The debtor has promised to
deliver the same (specific) thing
two 2 or more persons who do
not have the same interest
c) The obligation to deliver a
specific thing arises from a crime
d) The thing to be delivered is
generic
2. When declared by stipulation
- It is when both parties agreed
that regardless of fortuitous
event, debtor will still be liable for
damages when obligation is not
complied.
3. When the nature of the obligation
requires the assumption of risk.
ARTICLE 1175
USURY
Usurious transactions shall be governed
by special laws.
MEANING OF SIMPLE LO AN OR
MUTUUM
- It is a contract where one of the
parties deliver to another (money
or any consumable things) upon
the condition that the same
amount of the same kind and
quality shall be paid.
 MEANING OF USURY
- It is receiving excess interest
than the required amount by law.
REQUISITES FOR RECOVERY OF
INTEREST
1. The payment of interest must be
expressly stipulated
2. The agreement must be in writing
3. The interest must be lawful
Note: Agreement for the payment of
usurious transactions are considered
null and void. But, the creditor may still
recover the principal amount of loan and
may demand compliance to other terms
in the contract as long as it is valid.
ARTICLE 1176
PRESUMPTION
- It is the inference or
assumption of fact not actually
known arising from is usual
connection with another which is
known and proved.
TWO KINDS OF PRESUMPTION
1. Conclusive presumption
- It cannot be contradicted
Example: everyone is presumed to
know the law
2. Disputable or rebuttable
presumption
- It can be contradicted or
rebuttable by presenting proofs.
WHEN PRESUMPTION IN
ARTICLE 1176 DO NOT APPLY
1. With reservation as the interest
- Presumption do not arise when
there is a reservation that no
payment has been made as to
interest or prior installments
2. Receipt without indication of
particular installment period
- If the receipt does not dictate
that it was issued for a
particular installment due when
the receipt is only dated
Example: It only says “payment of
10,000 pesos,” So, there is no
presumption that it was a payment for a
specific month of rent
3.Receipt for a part of principal
- Interest are paid first. So, when
the principal is paid, it is
presumed that the interest is
already paid.
4. Payment of tax
- There is no presumption that
previous taxes are paid by the
payment of the later ones
5. Non-payment proven
- Presumption is not applicable
when the non-payment of prior
obligations has been proven.
Note: Presumption cannot prevail over
a proven fact.
ARTICLE 1177
REMEDIES OF THE CREDITOR
TO SATISFY THEIR CLAIMS
- In case that the debtor does not
comply with his obligations, the
creditor may avail himself of the
remedies to satisfy his claims.
1. Creditors may demand for specific
performance with the right to
damages.
2. Creditors may pursue the leviable
property of the debtor
- They may ask the court to levy
(get/acquire) the leviable
properties of the debtor to fulfill
his obligations
3. Creditor may exercise the right of
the debtor with exemptions
4. Creditor may ask the court to
rescind or impugn acts made by the
debtor to defraud him.
Note: This remedies are arranged by
hierarchy. So, you can’t choose on what
remedy you will use and it is not
necessary to use all this remedies.
ARTICLE 1178
TRANSMISSIBILITY OF RIGHTS
All rights acquired in virtue of an
obligation is transmissible, if there is no
stipulation to the contrary.
TRANSMISSIBILITY OF RIGHTS
- All rights acquired in virtue of an
obligation are generally
transmissible or assignable. (it
can be passed to another
person)
Exemptions:
1. Prohibited by law
- It is not transmissible as it is
considered as purely personal
in character
a.) By the contract of
partnership
- Two or more people bind
themselves to a common fund,
then divide the profits among
themselves.
b.) By the contract of agency
- A person binds themselves to
render some service or to do
something in behalf of the other,
with the consent of the latter.
 c.) By the contract of
commodatum

- One of the parties delivers to

another something that is not
consumable.

Example: borrowed book

2. Prohibited by the stipulation of the

parties

- Contract is the law between the

parties. So, when they agreed
that the right is not transmissible,
then it is prohibited to assign to
another person
- However, it should be clearly
expressed or stated in the
contract.