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OBLIGATIONS AND
CONTRACTS
Laguna State Polytechnic University – Juris Doctor, Class
of 2019
 CHAPTER 2. NATURE
AND EFFECT
OF OBLIGATIONS
Posted on 20 Feb 2019

ARTICLE 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. 

BY: JOHANNES AQUINO

Lahat ng may obligasyon mag bigay ng isang

bagay ay meron ring tungkulin na alagaan ito
katulad ng pag-aruga ng isang mabuting padre
de familia, maliban na lang kung ang batas o
ang napagkasunduan ng magkabilang panig ay
nangangailangan ng ibang antas ng
pangangalaga.

The article refers to obligation to give a

determinate thing
 Determinate/specific – identified by
individuality

Generic/indeterminate – refers to class or

genus

Requirements

Diligence of a good father of the family. Bonus

pater familias: The concept involves giving the
care which the nature of the thing cared for
demands.

Another standard of care – The degree of

diligence must not be inferior to the diligence
of a good father  of the family. Anything lower
than this would be against public policy and
good customs.

Duties of debtor in obligation to give a

determinate thing

 (1) To preserve or take care of the thing due;

(2) To deliver the fruits of the thing;

(3) To deliver its accessions and accessories;

(4) To deliver the thing itself

(5) To answer for damages in case of non-

fulfillment or breach.
Duties of debtor in obligation to deliver a
generic thing

(1) To deliver a thing which is of the quality

intended by the parties taking into
consideration the purpose of the obligation
and other circumstances; and

(2) To be liable for damages in case of fraud,

negligence, or delay, in the performance of his
obligation, or contravention of the tenor
thereof.

Illustration:

If Autobot Car Dealer’s obligation is to

deliver a brand new Toyota Alphard to
Rody Dutz, Autobot can deliver any
unit of Toyota Alphard as long as it is
brand new regardless of whatever
conduction sticker, chassis number or
engine number the vehicle has. But if
Autobot’s obligation is to deliver to
Rody Dutz a particular Toyota Alphard,
like the one used by the Sultan of
Brunei in the latest APEC summit,
Autobot cannot substitute it with
another unit of Toyota Alphard nor can
Rody Dutz require Autobot to deliver a
different Toyota Alphard without
Autobot’s consent although it may be of
 the same kind and value. determinate
upon its delivery.

ARTICLE 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. 

BY: KRISTIA CAPIO

Artikulo 1164. Ang nagpapautang ay may

karapatan sa mga bunga ng mga bagay na
mula sa panahon na naipagkaloob na. Gayun pa
man, hindi nya makakamit ang tunay na
karapatan hanggang ang nasabing karapatan
ay naipagkaloob sa kanya.

The general rule is that the creditor has the

right to the fruits of the thing from the time
the obligation to deliver it arises.
Ownership over the thing though, is only
required when such an object is delivered to
him. The essential element therefore of
ownership is delivery. Therefore, although the
creditor has the right has the right to the
fruits of a thing from the time the obligation
to deliver the thing itself arises, his ownership
will start when the thing is delivered to him.
 WHEN OBLIGATION TO
DELIVER THE FRUITS ARISES
Example:
 

Anne sold her dog to Janine for 15,000 pesos

and while in the possession of Anne, the dog
gave birth to a puppy in which Janine is the
one entitled to the puppy if Janine has already
paid the amount of 15, 000 pesos to Anne.
PERSONAL RIGHT  is the right or power of a
person to demand from another — to give, to
do, or not to do.
REAL RIGHT is a power over a specific thing
(like the right of ownership or possession) and
is binding on the whole world.
Example:
 
If Anne was a creditor to a house and Janine
was the debtor and both agreed that the
payment for the rent of the house would be
monthly. Janine upon paying is what we call
REAL RIGHT. But upon Anne expecting Janine
to pay every month is what we call PERSONAL
RIGHT.
Case
 A. A. ADDISON vs. MARCIANA FELIX and
BALBINO TIOCO
G.R. No. L-12342. August 3, 1918.
FISHER, J.
Facts:
Petitioner Addison sold four parcels of land to
Defendant spouses Felix and Tioco located in
Lucena City. Respondents paid P3, 000.00 for
the purchase price and promised to pay the
remaining by installment. The contract
provides that the purchasers may cancel the
contract within one year after the issuance of
title on their name.

The petitioner went to Lucena for the survey

designaton and delivery of the land but only 2
parcels were designated and 2/3 of it was in
possession of a Juan Villafuerte.

The other parcels were not surveyed and

designated by Addison.

Addison demanded from petitioner the

payment of the first installment but the latter
resists that there was no delivery and as such,
they are entitled to get back the 3,000
purchase price they gave upon the execution
of the contract.

 
Issue:
 
Whether or not there was a valid delivery.
Ruling:
The record shows that the plaintiff did not
deliver the thing sold. With respect to two of
the parcels of land, he was not even able to
show them to the purchaser; and as regards
the other two, more than two-thirds of their
area was in the hostile and adverse possession
of a third person.
 
It is true that the same article declares that
the execution of a public instruments is
equivalent to the delivery of the thing which is
the object of the contract, but, in order that
this symbolic delivery may produce the effect
of tradition, it is necessary that the vendor
shall have had such control over the thing sold
that, at the moment of the sale, its material
delivery could have been made. It is not
enough to confer upon the purchaser the
ownership and the right of possession. The
thing sold must be placed in his control. When
there is no impediment whatever to prevent
the thing sold passing into the tenancy of the
purchaser by the sole will of the vendor,
symbolic delivery through the execution of a
public instrument is sufficient. But if there is
an impediment, delivery cannot be deemed
effected.
 ARTICLE 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.

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. 

BY: BRYAN GLENN FABIAÑA

Kapag ang dapat ihatid ay isang tiyak na

bagay, ang nag papautang maliban sa
karapatang ipinagkaloob sa kanya ng Artikulo
1170 ay maaring pilitin ang nag kakautang na
ihatid o ibigay ang napagkasunduan.

Kapag ang dapat ihatid o ibigay ay isang hindi

tiyak na bagay, maarin nitong pilitin ang nag
kakautang na tupadin ang napag kasunduan at
bayaran ang mga nagastos.”
Kapag ang taong may obligasyon ay na antala o
nangako na ihatid ang parihong bagay sa
dalawa o higit pang katao na mag kaiba ang
hangad, siya ay may pananagutan dahil sa di
inaasahang pangyayari na kagagawan ng tao o
kalikasan hanggang sa matupad nito o
maibigay ang napagkasunduan.

COMMENT

A determinate or specific thing is something

which is susceptible of particular designation
or specification. (ex.) Mercedez Benz Car
Model 2000, Chasis No. 12345678910 with Plate
No. BBB 2222.

An indeterminate or generic thing is

something which is not particularized or
specified but has reference only to class or
genus. (ex) a money, a car etc.

Paragraph 1 does not mean that the creditor

can use force or violence upon the debtor. The
creditor must bring the matter to the court
and the court and will be the one to order the
delivery. When a debtor does not fulfill his
obligation to deliver a determinate thing the
creditor may avail himself of the following
actions:
(1.) Complaint for specific performance;

(2.) Complaint fore recission of the obligation;

(3.) Compalint for damages.

An obligation to deliver a determinate thing as

a general rule is extinguished if the thing is
lost due to fortuitous events. Whereas an
obligation to deliver an indeterminate or
generic thing is not extinguished by fortuitous
events.

Genus Nunguam Perit (Genus Never Perishes)

A fortuitous event is an extra ordinary event

which cannot be foreseen or which though
foreseen is inevitable. As a general rule no
person shall be responsible for those events
which could not be foreseen or which though
foreseen were inevitable except:

1.) In cases expressly specified by law;

2.) When it is stipulated by the parties;

3.) When the nature of the obligation requires

assumption of risk.

Article 1165 paragraph 3 is an example of an

exception expressly provided by law. Thus id
the debtor is guilty of delay in the
performance of his obligation or has promised
to deliver the same thing to two or more
persons who do not have common interest he
shall be liable for the loss of the thing by
reason of fortuitous event until he has effected
the delivery thereof. Delay in paragraph 3
speaks of extra ordinary or legal delay and not
ordinary delay. Extra ordinary delay is a delay
tantamount to non-fulfillment of obligation
and arises after an extrajudicial or judicial
demand had been made upon the debtor.

Illustration:

ABC company contracted to deliver a vessel to

ZZZ company on January 10, 2019. The former
failed to deliver on the stipulated period. On
January 30, 2019 the vessel sunk because of a
raging storm. ABC company is not liable
because the obligation was extinguished. It
does not commit legal delay.

However, if there was demand for delivery of

the vessel before January 10, 2019 and ABC
company failed to deliver and the vessel sunk
on Jawnuary 30, 2019 by reason of the storm,
the company is liable. The obligation to deliver
the vessel is converted into a money claim for
damages.
 ARTICLE 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. 

BY: JANINE GUMANGOL

Ang obligasyon sa pagbigay ng tiyak na bagay

ay kasama ang paghatid ng lahat ng
karagdagan, pagpapaunlad at palamuti, kahit
na ang mga ito ay hindi nabanggit sa
kasunduan.

Determinate/Specific Things

–things that are distinct and can be physically

classified or determined from all others. Ex:
vehicle, Iphone

Accessories—those joined or included with the

principal for the latter’s better use, perfection,
or enjoyment. Ex: Keys to a house, Key to a car

Accessions-additions to or improvements upon

a thing. Ex: Alluvium (soil of a riverbank,
plants.

Effect of Stipulation
Of course, if there is a stipulation to said effect,
accessions and accessories do not have to be
included.

The fault or negligence of the obligor consists

in the omission of that diligence which is
required by the nature of the obligation and
corresponds with the circumstances of the
person, of the time and of the place. When
negligence shows bad faith, the provisions of
Articles 1171 and 2201, paragraph 2, shall
apply.

If the law or contract does not state the

diligence which is to be observed in the
performance, that which is expected of a good
father of a family shall be required.

ARTICLE 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 THE OBLIGATION. FURTHERMORE, IT MAY
BE DECREED THAT WHAT HAS BEEN POORLY
DONE BE UNDONE. 

BY: ALGY RIGUER

 KUNG ANG ISANG TAO NA MAY OBLIGASYON
NA GUMAWA NG ISANG BAGAY AY HINDI
NAGAGAWA ITO, ANG PAREHONG AY
IPAPATUPAD SA KANYANG GASTOS.

ANG PAREHONG PATAKARAN AY DAPAT

SUNDIN KUNG GINAWA NIYA ITO SA PAGLABAG
SA TENOR NG OBLIGASYON. HIGIT PA RITO
MAARI ITO MAITAKDA NA ANG HINDI
MAGANDA ANG NAGAWA AY MAIBABALIK.

A PERSON WHO HAS AN OBLIGATION NEGLECT

TO DO IT, HE WILL PAY FOR HIS FAILURE.

SAME RULE IS OBSERVED IF HE FULFILL THE

OBLIGATION BUT CONTRAVENTION OF THE
AGREEMENT, BUT THE SAME IS POOR OR
INADEQUATE.

It contemplates three situations:

1. The debtor fails to perform an obligatio
n to do; or 
2. The debtor performs an obligation to d
o but contrary to the  terms thereof; or 
3. The debtor performs an obligation to d
o but in a poor manner.

 
CASE DIGEST

Chavez, Plaintiff vs Gonzales, Defendant.

G.R. No. L-27454

April 30, 1970

Reyes, J;

Facts: Rosendo Chavez plaintiff, delivered to

Fructuoso Gonzales defendant, a typewriter
repairer, portable typewriter for cleansing and
servicing. Defendant was not able to finish the
job after some time despite repeated
reminders made by plaintiff. Finally defendant
returned the typewriter unrepaired and some
of the parts missing. Plainfitt had the
typewriter repaired by Freixas Business
Machine, and the repair job cost him Php 58.75
for labor and service of Php 31.10 fir the
missing parts or a total of Php 89.85.

  Issue; Whether or not the defendant is liable

for the cost of repair.

Held: Yes, for such contravention, he is liable

under Art. 1167 of the Civil Code. For the cost
of executing the obligation in a proper
manner. The cost of the execution of the
obligation in this case should be the cost of the
labor or service expended in the repair of the
typewriter.

ARTICLE 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. 

BY: ROSE ANN VILLANUEVA

Kapag ang isang obligasyon ay

nangangahulugan ng hindi paggawa, at ang
may obligasyon ay ginawa ang ipinagbabawal,
ang may obligasyon ay may pananagutan na
ibalik sa dati ang kanyang ginawa.

The duty of the obligor is to abstain from

doing. The very obligation is fulfilled in not
doing what is forbidden.

Example:

Kristia bought a land from Bryan, it is

stipulated in the contract that Bryan will not
build a fence on a certain portion of his land
adjoining that sold to Kristia. If Bryan
constructs a fence in violation of the
agreement, Kristia can bring an action to have
the fence removed at the expense of Bryan.
Article 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:

(1) When the obligation or the law expressly

so declare; 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. 
 ARTICLE 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.

BY: JOHANNES AQUINO

Lahat ng nakagawa ng panloloko, pagpapabaya,

o pag-antala sa pagtugon sa kanilang
obligasyon, at ano pa mang pagsalungat sa
tuntunin ng kasunduan ay may pananagutang
magbayad ng pinsala.

Grounds for liability

1. Fraud (dolo) – There is fraud or willful

violation of the obligation
2. Negligence (culpa) – Refers to
negligence arising from contractual
obligations, which are not fully and
faithfully complied by the obligor. This
is distinguished from culpa aquiliana,
which refers to negligence independent
of any contractual obligation
3. Delay (mora) – The delay must be either
malicious or negligent.
4. Contravention of the tenor of the
obligation – Violation of the terms and
 condition stipulated in the obligation

Damages may include moral, nominal,

temperate, liquidated and exemplary

Illustration:

Gloria Arrovo obliged himself to deliver to

socialite Imee Narcos 20 bottles of expensive
wine. Gloria Arrovo delivered 20 bottles
knowing that they contain cheaper wine.
Gloria Arrovo is guilty of fraud and is liable for
damages to Imee Narcos.

If Imee Narcos bought the 20 bottles of Dom

Perignon wine on the false representation of
Gloria Arrovo that the wine is that as
represented by the labels, the fraud committed
by Gloria Arrovo is causal fraud. Without the
fraud, Imee Narcos would not have given his
consent to the contract. He has the right to
have the contract annulled or set aside on the
ground of the fraud. In the first situation, the
remedy of Imee Narcos is not annulment of the
contract of sale which is not affected by the
incidental fraud but to claim damages. If the
fraud employed by Gloria Arrovo to get Imee
Narcos’ consent was not the principal
inducement that led Imee Narcos to enter into
the contract, the fraud is also incidental under
Article 1344 and it will likewise give rise only
to an action for damages.

ARTICLE 1171. RESPONSIBILITY ARISING

FROM FRAUD IS DEMANDABLE IN ALL
OBLIGATIONS. ANY WAIVER OF AN ACTION
FOR FUTURE FRAUD IS VOID.

BY: KRISTIA CAPIO

Artikulo 1171. Ang mga responsibilidad mula sa

pandaraya ay maaaring hingin sa lahat ng
obligasyon.  Kahit anong pagtalikdan sa aksyon
sa pandaraya sa hinaharap ay walang bisa.

According to time of commission, fraud may

be past or future. The fraud referred to in this
article is the fraud that refers to the
fulfillment of an obligation rather than the
fraud which is the origin of the obligation.

Two different articles refer to two different

frauds or dolos:

Dolo causante or causal fraud

(Article 1338) is a deception of a
serious character employed by one
party and without which the other
party would not have entered into a
contract.  
 This is when fraud used to induce a person
to agree to a contract. This kind of fraud is
a ground for annulment of the contract
plus damages

Example:

There was an ad offering work to female

college graduates to work as English tutors
to rich Hong Kong families but in truth
that was recruitment to work in a red light
district or pleasure district.

Dolo incedente or incidental fraud

(Article 1144)  those which are not
serious in character and without which
the other party would still have
entered into the contract.

Example:

Anne enter into a contract to deliver 500

cavans of rice to Noel with a price per
cavan of 1,300 pesos, Anne delivered 400
cavans but withheld the delivery of the
remaining, stating that the price went up
and priced the rice to 1,600 per cavan. The
fraud here is dolo incidental because it is
committed to the existing contract.

Case: 
 MARIANO C. PAMINTUAN vs. 

COURT OF APPEALS and YU PING KUN CO.,

INC 

G.R. No. L-26339. December 14, 1979.

AQUINO, J.

Facts:

Mariano Pamintuan was in an agreement  with

Yu Ping Kun Co., Inc. to sell plastic sheetings
imported by the former from Japan through a
barter license he had for the export of white
flint corn to Toyo Menka Kaisha, Ltd. While
the plastic sheetings were arriving in Manila,
Pamintuan informed the President of Yu Ping
Kun Co., Inc. that he was in dire need of cash
with which to pay his obligations to the
Philippine National Bank.

Consequently, the two parties fixed a price to

the plastic sheetings regardless of the kind,
quality or actual invoice value thereof and
based it on dividing the total price of the
shipment with its aggregate quantity. After
the shipments arrived in Manila (4 shipments
in total), Pamintuan only delivered a portion
or 224, 150 yards of the expected 339, 440
yards of plastic sheetings he received to Yu
Ping Kun’s warehouse.

Furthermore, he delivered plastic sheetings of

inferior quality that were valued at a lesser
price than what Yu Ping Kun had paid.

Subsequently, Yu Ping Kun filed an action to

enforce a provision in their contract of sale
which states that any violation of the
stipulations of that contract would entitle the
aggrieved party to liquidated damages in the
amount of 10, 000 Php from the offending
party.

Issue:

Whether or not Pamintuan committed fraud in

the performance of his obligation.
Ruling:

Yes, the petitioner is guilty of fraud and

should pay the damages to the defendant.

Pamintuan’s contention cannot be sustained

because the second sentence of article 1226
itself provides that “nevertheless, damages
shall be paid if the obligor is guilty of fraud in
the fulfillment of the obligation”.
“Responsibility arising from fraud is
demandable in all obligations” (Art. 1171).
The Court also found that Pamintuan was
guilty of fraud because (1) he was able to make
the company agree to change the manner of
paying the price by falsely alleging that there
was a delay in obtaining confirmation of the
suppliers’ acceptance of the offer to buy; (2) he
caused the plastic sheetings to be deposited in
the bonded warehouse of his brother and
control the disposal of the goods; (3) he
overpriced the plastic sheetings which he
delivered to the company.

ARTICLE 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.

BY: BRYAN GLENN FABIAÑA

Ang pananagutan na nagmumula sa

kapabayaan nang pag-ganap sa bawat
obligasyon ay maaring hingin sa korte ngunit
ang nasabing pananagutan ay maaring iwasto
ng korte ayon sa pangyayari.

Comment:
In determining the liability of a party for
damages resulting from his negligence in the
fulfillment of contractual obligation, the
courts have discretionary power to moderate
the liability according to the circumstances of
the case.

However, this mitigation of damages is applied

only to liability arising from culpa as there is
no deliberate intention to cause damage or
injury as against fraud where there is a
deliberate intention to cause damage.

Illustration:

(Ex.) If a passenger was himself is negligent

then the liability of the common carrier due to
negligence will be reduced.

ARTICLE 1173. THE FAULT OR NEGLIGENCE OF

THE OBLIGOR CONSISTS IN THE OMISSION OF
THAT DILIGENCE WHICH IS REQUIRED BY THE
NATURE OF THE OBLIGATION AND
CORRESPONDS WITH THE CIRCUMSTANCES
OF THE PERSONS, OF THE TIME AND OF THE
PLACE. WHEN NEGLIGENCE SHOWS BAD
FAITH, THE PROVISIONS OF ARTICLES 1171
AND 2201, PARAGRAPH 2, SHALL APPLY.

IF THE LAW OR CONTRACT DOES NOT STATE

THE DILIGENCE WHICH IS TO BE OBSERVED
IN THE PERFORMANCE, THAT WHICH IS
EXPECTED OF A GOOD FATHER OF A FAMILY
SHALL BE REQUIRED.

BY: JANINE GUMANGOL

Ang kamalian o kapabayaan ng taong may

pananagutan ay mababangkas sa hindi
pagsagawa o pagpabaya na kinakailangan sa
katangian ng obligasyon at naaayon sa mga
tao, ng panahon at ng lugar. Kung ang
kapabayaan ay nagpapakita ng masamang
hangarin, ang probisyon ng Artikulo 1171 at
2201, ikalawang talata, ang maipapatupad.

        Kung hindi isinasaad ng batas o

kasunduan ang kasipagan na dapat maisagawa
sa pagsasakatuparan ng pananagutan, iyong
kasipagan na inaasahan sa mabuting padre de
pamilya ang dapat maisagawa.

ARTICLE 1174. EXCEPT IN CASES EXPRESSLY

SPECIFIED BY THE LAW, OR WHEN IT IS
OTHERWISE DECLARED BY STIPULATION, OR
WHEN 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.

BY: ALGY RIGUER

Maliban sa mga kaso tinukoy ng batas, o kung
ito ay ipinahayag sa pamamagitan ng
panuntunan, o kapag ang likas na katangian ng
obligasyon ay nangangailangan ng pag-aakala
ng peligro, walang sinuman ang magiging
responsable para sa mga pangyayaring hindi
na makitang, o kahit na nakikita, ay hindi
maiiwasan.

THIS ARTICLE AS A GENERAL RULE EXCUSING

THE OBLIGOR IN THE NON-PERFORMANCE OF
THE OBLIGATION IF SUCH NON-
PERFORMANCE IS CAUSE BY ANY FORTUITOUS
EVENT.

Fortuitous event – is any extraordinary event

which cannot be foreseen, or which,   though
foreseen is inevitable.

Classes of Fortuitous Events

As to origin of cause

1. Fortuitous event – This refers to an

event which is absolutely independent
of human   intervention. It is also called
an act of God.
2. Force majeure (fuerza mayor) – This
refers to an event caused by the
 legitimate and   illegitimate acts of
persons other than the obligor. In brief,
in force majeure, there is   human
intervention.

As to foresee ability

1. Ordinary fortuitous events – These are

events which ordinarily happen or
which could   be reasonably foreseen
but are inevitable.
2. Extraordinary fortuitous events –
Those which do not usually happen and
could not   be reasonably foreseen.

CASE DIGEST

Roman Catholic Bishop of Jaro, Plaintiff-

appellee,

vs

Gregorio Dela Peña, Defendant-appellant.

G.R. No. L-6913

November 21, 1913

Moreland, J;

Facts: In 1898 Fr. De la Peña assigned as trustee

of the sum of P6,641, collected by him for the
charitable purposes he deposited in his
personal account P19,000 in the Hong Kong
and Shanghai Bank at Iloilo. During the war of
the revolution, Father De la Peña was arrested
by the military authorities as a political
prisoner. The arrest of Father De la Peña and
the confiscation of the funds in the bank were
the result of the claim of the military
authorities that he was an insurgent and that
the funds deposited had been collected by him
is for revolutionary purposes. The money was
taken from the bank by the military
authorities by virtue of such order, was
confiscated and turned over to the
Government.

Issue: Whether or not Father De la Peña is

liable for the loss of the funds.

Held: No, he is not liable because there is no

negligent act on the part of Fr. De la Peña. It
was so happened that during that time the
money was taken from him by the U.S.
military forces which is unforeseen event.
Although the Civil Code states that “a person
obliged to give something is also bound to
preserve it with the diligence pertaining to a
good father of a family”, it also provides,
following the principle of the Roman law that
“no one shall be liable for events which could
not be foreseen, or which having been
foreseen were inevitable, with the exception of
the cases expressly mentioned in the law or
those in which the obligation so declares.”

ARTICLE 1175. USURIOUS TRANSACTIONS

SHALL BE GOVERNED BY SPECIAL LAWS. 

BY: ROSE ANN VILLANUEVA

Ang mga transakyon na may labis na

pagpapatubo ay sasaklawin ng espesyal na
batas.

Usury- is the contracting for or

receiving something in excess of the
amount allowed by law for the loan or
use of money, goods, chattels (
something that a person owns other
than land or buildings. e.g furniture,
tools) or credits.

Usury law is now legally non-existent.

Special Laws that use to govern usury:

1. Commonwealth Act No. 399

2. Act No. 2655 as amended by Act No.
3998
3. Republic Act No. 337
 4. Presidential Decree No. 116, 858 and
1684

Loan- giving a sum of money, goods, or

credit to another, with a promise to
repay but not a promised to return the
same thing
Interest- income produced by money in
relation to its amount and to the time
that it cannot be utilized by its owner.
Interest s may either be moratory (paid
in contractual obligations to pay a sum
of money, or as the stipulated advanced
determination of the damages due to
the delay in fulfillment of the
obligation) or compensatory (interest
on obligations which have an extra
contractual or delictual origin)

Article 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. 
 ARTICLE 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. 

BY: JOHANNES AQUINO

Ang mga kreditors ay may karapatang habulin

ang mga pag-aari ng may obligasyon, kasama
na ang mga karapatan nito maliban sa mga
personal na karapatan.

Remedies of the creditors to satisfy their

claims:

1. Pursue the property of the debtor still

in his possession
2. Exercise all rights of the debtor except
those that are personal to such debtor
3. File judicial actions to collect the credit
including writ of attachment and
execution upon all leviable property of
the debtor
 4. Contest or seek the annulment of acts
executed by the debtor to defraud
collectors

Contracts that may be rescinded by the

creditors:

1. Alienations by gratuitous title by the

debtor who does not reserve enough
property to satisfy previous debts
2. Alienations by onerous title if the
debtor has been issued a writ of
attachment or there is a judgement
against him

Creditors may also petition the court to

accept the inheritance of a repudiating
heir

Illustration:

On the due date, Chiz Caldero could not pay

Tony Thrillyanez his obligation in the amount
of P300,000.00. However, Chiz Caldero owns a
car worth about P160,000.00 and Alan Peter
Cayetanose is indebted to him for P40,000.00.
Before the due date of the obligation, Chiz
Caldero sold his farm land worth P200,000.00
to real estate magnate Cynthia Billiards.
Under the circumstances, the rights granted to
Tony Thrillyanez under the law are as follows:

(a) He may bring an action for the collection of

the amount of P300,000.00 with the right to
damages.

(b) If, inspite of the judgment rendered, Chiz

Caldero fails to pay the amount due, Tony
Thrillyanez can ask for the attachment of Chiz
Caldero’s car so that the car may be sold and
payment made from the proceeds of the sale.

(c) He may ask the court to order Alan Peter

Cayetanose not to pay Chiz Caldero so that
payment may be made to him (Tony
Thrillyanez).

(d) He may ask the court to rescind or cancel

the sale made by Chiz Caldero to Cynthia
Billiards on the ground that the transaction is
fraudulent in case he cannot recover in any
other manner his credit. Note that this last
remedy can be resorted to only if Tony
Thrillyanez could not collect in full his credit.
He must first exhaust the properties of the
debtor or subrogate himself in the latter’s
transmissible rights and actions.

ARTICLE 1178. SUBJECT TO THE LAWS, ALL

RIGHTS ACQUIRED IN VIRTUE OF AN
OBLIGATION ARE TRANSMISSIBLE, IF THERE
HAS BEEN NO STIPULATION TO THE
CONTRARY. 

BY: KRISTIA CAPIO

Artikulo 1178. Naaayon sa batas, lahat ng

karapatang nakamtan sa pamamagitan ng
isang obligasyon ang maaaring ilipat, kung
walang nakasaad na taliwas dito.

General Rule:

All rights that are acquired by virtue of an

obligation are transmissible. 

Subject to such laws, all rights acquired by

virtue of an obligation are transmissible. Heirs
shall be liable only to the extent of what they
stand to inherit.

Transmissibility is that character whereby an

act, a deed or a title whereby it passes on to
one’s heirs or assigns.

Intransmissible rights are rights that do not

pass on to one’s heirs or assigns. 

Exceptions:
(1) Prohibited by law. — When prohibited by
law, like the rights in partnership, agency, and
commodatum which are purely personal in
character.
(a) By the contract of partnership, two or more
persons bind themselves to contribute money,
property or industry to a common fund, with
the intention of dividing the profits among
themselves. (Art. 1767.)
(b) By the contract of agency, a person binds
himself to render some service or to do
something in representation or on behalf of
another, with the consent or authority of the
latter. (Art. 1868.)
(c) By the contract of commodatum, one of the
parties delivers to another something not
consumable so that the latter may use the
same for a certain time and return it.

(2) Prohibited by stipulation of parties. —

When prohibited by stipulation of the parties,
like the stipulation that upon the death of the
creditor, the obligation shall be extinguished
or that the creditor cannot assign his credit to
another. The stipulation against transmission
must not be contrary to public policy. Such
stipulation, being contrary to the general rule,
should not be easily implied, but must be
clearly proved, or at the very least, clearly
implied from the provisions of the contract
itself.

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SECTION 2. LOSS SECTION 1. PURE CHAPTER 1.

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Author:
Laguna State Polytechnic
University
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