Article 1163 to 1178 of the Civil Code of the Philippines covers various aspects of obligations

and contracts. These articles outline the nature and effects of obligations, the transmissibility of
rights acquired through obligations, the demand ability of obligations, and the concept of
consignation. Let's delve deeper into each of these articles:

Article 1163:
This article defines an obligation as a juridical necessity to give, to do, or not to do something. It
emphasizes that obligations arise from law, contracts, quasi-contracts, delicts, and quasi-delicts. In
simpler terms, an obligation is a legal duty that one party owes to another.

• A person is obligated to pay taxes to the government as required by law.

• A person is obligated to pay their rent to their landlord as stated in their lease agreement.

Article 1164:
Article 1164 states that an obligation is extinguished when the parties agree to release each other
from their respective obligations. This can be done through a mutual agreement or by fulfilling the
obligation itself.

• A contract between two parties is governed by the terms and conditions agreed upon in the
contract.
• A person is obligated to fulfill their duties as an employee based on the labor laws of the country.

Article 1165:
According to Article 1165, when an obligation consists of delivering a specific thing, the debtor is
responsible for its loss or deterioration, unless it is due to a fortuitous event or force majeure.

• A person enters into a contract to purchase a car from a dealership. Both parties are legally
bound to fulfill their obligations as stated in the contract.
• Two parties enter into a contract for the sale of a house. Both parties are legally bound to fulfill
their obligations, such as the payment of the agreed purchase price and the delivery of the
property.

Article 1166:
This article states that an obligation cannot be fulfilled through another person unless the law,
contract, or stipulation allows it. In general, the debtor is the one responsible for fulfilling their
obligations.

• A person is obligated to pay child support as mandated by the law. The parties involved cannot
modify or alter this obligation.
• A person is obligated to pay their income taxes according to the tax laws of the country. Neither
the taxpayer nor the tax authority can modify this obligation.
Article 1167:
Article 1167 highlights that if a person obligated to do something fails to fulfill their obligation,
they may be compelled to do so through specific performance or be held liable for damages.

• A contractor fails to complete a construction project as agreed upon in the contract. The client
can demand that the project be completed at the contractor's expense.
• A contractor fails to complete a renovation project within the agreed timeline. As a result, the
client hires another contractor to complete the remaining work, and the original contractor is
responsible for covering the additional expenses incurred.

Article 1168:
This article explains that when the obligation consists of not doing something, any act contrary to
the prohibition will render the obligor liable for damages.

• A person is prohibited from cutting down trees on a specific property. If they violate this
obligation and cut down the trees, they must restore the property to its original state at their
expense.
• A person is prohibited from using a trademark owned by another company. If they violate this
obligation and use the trademark, they must cease its use and be liable for any damages caused.

Article 1169:
Article 1169 states that obligations arising from contracts have the force of law between the
parties. This means that the terms and conditions agreed upon in a contract are binding and
enforceable.

• A person fails to pay their rent on time. The landlord sends a written demand for payment, which
starts the period of delay for the tenant.
• A supplier fails to deliver goods to a customer within the agreed timeframe. The customer sends
a written demand for delivery, and from that point, the supplier is considered to be in delay.

Article 1170:
According to Article 1170, those who, in the performance of their obligations, are guilty of fraud,
negligence, or delay, and those who violate any other contractual stipulation, are liable for
damages.

• A contractor performs substandard work on a construction project, causing damage to the

property. The contractor can be held liable for the damages caused.
• A professional accountant provides incorrect financial information to their client, leading to
financial losses. The accountant can be held liable for damages caused by their negligence.

Article 1171:
This article emphasizes that the responsibility for the non-performance of an obligation is
generally borne by the debtor, unless there is a stipulation to the contrary.
• A person intentionally provides false information in a contract, leading to financial loss for the
other party. The responsible party can be held accountable for the fraud.
• A person intentionally conceals defects in a product they sell. If the buyer discovers the defects
and suffers harm as a result, they can hold the seller responsible for fraud.

Article 1172:
Article 1172 states that responsibility arising from negligence in the performance of obligations is
demandable only when there is a legal or contractual provision requiring it.

Article 1173:
According to Article 1173, the fault or negligence of the obligor consists of the omission of that
diligence which is required by the nature of the obligation and corresponds with the circumstances
of the persons, time, and place.

Article 1174:
This article explains that except in cases expressly specified by 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 events that could not be foreseen or which, though foreseen, were
inevitable.
Article 1175:
Article 1175 states that the duties and rights arising from contracts are not transmissible, except by
the stipulation of the parties, by operation of law, or by the nature of the rights.

Article 1176:
This article highlights that the receipt of the principal by the creditor without reservation, with the
knowledge of the non-payment of interest, shall give rise to the presumption that the interest has
been waived.

Article 1177:
According to Article 1177, creditors who have pursued the property in possession of the debtor to
satisfy their claims may exercise all the rights and bring all the actions of the debtor for the same
purpose, except those inherent to the debtor's person. They may also challenge any fraudulent
acts committed by the debtor.

Article 1178:
Article 1178 states that, subject to the laws, all rights acquired through an obligation are
transmissible unless there is a stipulation to the contrary.
These articles provide a framework for understanding the nature, effects, and responsibilities
associated with obligations and contracts. It is important to consult the specific provisions of the
law and seek legal advice when dealing with legal matters to ensure accurate interpretation and
application.
• A person owes a debt to another person. If there is no agreement stating otherwise, the creditor
can transfer their right to collect the debt to a third party.
• A person owes a debt to their friend. If the creditor passes away, their right to collect the debt
can be transferred to their heirs, unless there is a specific agreement stating otherwise.