ART. 1163.
Every person obliged to Kapag generic pede mong palitan as long as
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.
Care – thing kung paano iingatan ang
pamilya. Obliged tayo na alagaan ang mga
bagay like family or property. Kailangan
nating alagaan ang mga bagay na obliged
tayo na ibigay sa iba.
Sa LAW ang tawag dito ay ordinary care.
Extra ordinary diligence/extra ordinary care
Example
Liability ng driver pertaining to his
passenger, the driver has to exercise extra
ordinary care. Merong ganun sa batas natin
pero dito sa 1163 Unless the law or the
contract kapag walang binabanggit na kung
ano care or extra ordinary care na ibibigay
or apply na bagay na obliged na ibigay sa
iba so we apply ordinary care.
SPECIFIC VS GENERIC THING
Kapag specific ay yun na, it cannot be
substituted without the consent of the
creditor. Di basta basta napapalitan. Lalo na
kapag very specific.
Example it is pertaining to someone
 The watch I am wearing.
 My dog named “Terror.”
 The Toyota car with Plate No. AAV
344.
 This cavan of rice.
 The money I gave you. Segregated
kasi pinili nya.
 Babalikan ko tong petchay na to ah,
babalik ako, itago mo yan.
it is same kind. Di pedeng sabihin na
naiwala ko yung kelangan kong ibigay sayo
papalitan mo ito ng same kind.
Example not pertaining to someone or not
specific
 A watch
 A dog
 Toyota car
 A cavan of rice
 The money gave to you
 Babalikan ang petchay.
 Bumili ka ng paracetamol ito ay
generic. Kapag sinabing biogesic that
is specific.kapag sinabing bumili
kang biogesic na isang paracetaol,
that is specific.
Obligation to take care of the thing due.
 Diligence of a good father of a
family.
 Another standard of care
 Factors to be considered
 Reason for debtor’s obligation
ART. 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.
Ang real right ay di pa mapapasa kanya
hanggat di pa nadedeliver ang thing.
Different kinds of fruits
 Natural fruits – trees, plants,
grass, mga tumutubo sa ating
property. Kumbaga nanganak
ang iyong alagang hayop. Pag
sinabing natural fruits kusang
 nagkaroon without human
intervention, hindi mo
tinanim,and a hayop.
 Industrial fruits – cultivation or
labor. It means may ginawa na
tayo.
Example : corn and other crops, rice or
palay.kapag binenta ang land and and farm
tas may nakatanim. Kanina na yung
nakatanim?
 Civil fruits – juridical virtue dahil
sa contract or agreement .
Example : rent of building. Kapag binili ni
buyer and building matic na mapapapunta
sa kanya ang rent ng building.
Right of creditor to the fruits
When obligation to deliver arises?
 arises from the time of the
perfection of the contract.
meeting of minds
 it arises upon fulfillment of the
condition or arrival of the
period. May kondisyon bago
ideliver
 Time specified by law . when
the thing delivered, may
karapatan na si creditor sa
fruits.
Example: S sold his horse to B for
P15,000.00. No date or condition was
stipulated for the delivery of the horse.
While still in the possession of S, the horse
gave birth to a colt. Who has the right to
the colt?
Contract of sale,Kapag binayaran na ni B is
entitled to the colt kahit di pa nadedeliver
ni S.
But may right si S sa colt bago madeliver
ang horse and kapag di pa bayad si B.
Meaning of personal right and real right.
Real right - kapag may nagtangkang kunin
sayo gamit mo you have the real right and
sabihin na sayo yung gamit nayun, di
pedeng kunin ng kung sino sino. right or
interest of a person over a specific thing
(like ownership, possession, mortgage,
lease record) without a definite passive
subject. It is enforceable and can be
asserted against the world.
Personal right – jenny owes Jericho 10,000.
Jericho has the right to receive the payment
which is personal right which is enforceable
only against Jenny. Hindi pede kung sino
sino sisingilin nya. Enforceable against
specific individual. Right to demand from
another, it is the fulfillment of the
obligation to give, to do or not to do.
“he shall acquire no real right over it until
the same has been delivered to him,”
creditor does not become the owner
hanggan sa ang isang bagay ay di pa
nadedeliver sa kanya.
 ART. 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.
Pinepertain dito ay specific thing.
 If the thing is indeterminate
or generic, he may ask that the
obligation be complied with at
the expense of the debtor.
Kapag generic thing pwede si creditor or
ipagawa sa iba pero magbabayad ay si
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.
Salawahan,
Binigyan si creditor ng mga pamamaraan
pano marereso;ba problema sa real
obligations.
specific real obligation - obligation to
deliver a determinate thing.
 demand specific performance or
fulfillment.
 demand rescission or cancellation
 demand the payment of damages
only. Mga remedies ni creditor
incase of specific real obligation.
Example
Sensui sell his piano to raizen 20,000. Sensui
refuses to comply with his obligation to
deliver the piano, raizen can bring an
action:
1. ipadeliver, igagrant ng court yun
with damages
2. recission with damages.
3. Payment of the damages (if this only
possible action)
generic real obligation - obligation to
deliver a generic thing.
 Ask for delivery of fulfillment.
Masira man or mawala man pinag
usapan nyo, pedeng palitan ito
 Ask sa iba na ideliver ang thing with
damages na pedeng iclaim with
debtor or obligor.
Where debtor delays or has promised
delivery to separate creditors - fortuitous
event. Fire,flood , earthquake and other
disaster, bombing. Mga bagay ng
uncontrolled. Kapag nadelay liable sa mga
disaster.
ART. 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.
Specific thing.
Accessions -
Example: trees on land. Kahit wala yang
tree matataniman mo pa din yung land.
Offspringof animal. Kahit wala yan anak
pede po ba din magamit yung inahin or
yung hayop na binili mo.
Rents of a building. Kahit walang reants ay
meron ka pa dong building.
Dividends accrruing from investments.
Specific things kasama nag accessions.
Accessories - yung bagay na yun ay hindi
gagana kung wala itong accessories.
Example: key of a house. Nagbenta ka ng
bahay dapat kasama ang susi sa ibibigay.
Right of creditor to accessions and
accessories.
general rule is that all accessions and
accessories are considered included in the
obligation to deliver a determinate thing.
Accesory follows the principal.
Accession as a right.
Accession is also used in the sense of a
right. In that sense, it may be defi ned as
the right pertaining to the owner of a thing
over its products and whatever is
incorporated or attached thereto, either
naturally or artifi cially. (3 Sanchez Roman
89; Art. 440.) Accession includes, therefore,
the right to the fruits and the right to the
accessory. It is one of the rights which go to
make up dominion or ownership. (3
Manresa 166.) But it is not, under the law, a
mode of acquiring ownership. (see Art.
712.)
ART. 1167. Obligation to do
 If a person obliged to do
something fails to do it, the same
shall be executed at his cost.
Di nya nagawa? Pedeng ipagawa sa iba and
pedeng ikaw gumawa pero si debtor pa din
magbabayad.
 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.
Ang sabi mo pinturahan ang kotse mo ng
red, pero orange anag nilagay.
Situations contemplated in Article 1167.
Article 1167 refers to an obligation to do,
i.e., to perform an act or render a service. It
contemplates three situations:
(1) The debtor fails to perform an obligation
to do; o
(2) The debtor performs an obligation to do
but contrary to the terms thereof; or
(3) The debtor performs an obligation to do
but in a poor manner
Remedies of creditor in positive personal
obligation.
(1) If the debtor fails to comply with his
obligation to do, the creditor has the right:
(a) to have the obligation performed by
himself, or by another unless personal
considerations are involved, at the debtor’s
expense; and
(b) to recover damages. (Art. 1170.)
(2) In case the obligation is done in
contravention of the terms of the same or is
poorly done, it may be ordered (by the
court) that it be undone if it is still possible
to undo what was done.
Example : emma binds himself to construct
a house for yumi. It was stipulated that the
house shall have 3 bedrooms, each of which
have an area of 5 meters by 4 meterss and
the kitchen shall been painted all white.
If emma does not construct the house. Pede
mag ask sa third person (mokuro) na
iconstruct ang bahay sa expense ni emma.
Suppose emma constructed the house,
peroang bedroom ay hindi 5 x 4 meters,
pede sabihin ni yumi na ayusin and kapag di
pumayag, pedeng ipaga nya ito kay mokuro
and expense pa din ni emma.
White paint sa kitchen pero naging dirty
white. Ayaw ayusin ni emma pedeng
ipagawa kay moruko pero expense ni
emma.
ART. 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. Obligatiin not to do.
Kapag ginawa mo di dapat ipapagawa
magiging expense mo ito.
Example: bui bought a land from hagiri pero
may usapan na wag lalagyan ng bakod ang
certain portion of his land adjoining that
sold to Bui. Hagiri violated the agreement,
dapat gawing or may karapatan sya na alisin
yung bakod na yun. At the expense of
hagiri.
ART. 1169. Those obliged to deliver
or to do something incur in delay
from the time the obligee judicially
or extra-judicially demands from
them the fulfillment of their
obligation.
Ang obligation to deliver ay real obligation.
Ang to do something ay personal obligation.
Ang obligor ay delay kapa nagdemand na si
obligee , hindi dinabi na dumating period na
to in delay. Kapag nagkaroon ng demand,
judicial or extra judicial. It means nagfile ng
action sa court for the fulfillment of the
obligation. Pag extra judicial ay pedeng
pinuntahan ka or sinulatan ka to demand to
fulfillment the obligation. That is the
general rule.
However, the demand by the
creditor shall not be necessary in
order that delay may exist: tinutukoy
dito ay automatic delay. Kahit di
magdemand si creditor. Consider the delay
si debtor.
(1) When the obligation or the law
expressly so declares; nasa kasulatan or
agreement ninyo or sa law may nakalagay
ns sched na kung kelan ba icomply without
any need of any demand ikaw ay
considered na delay
(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;
(3) When demand would be useless,
as when the obligor has rendered it
beyond his power to perform. Di na
kayang iperform ni debtor or nawala ang
item.
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. Both parties dun sa
agreement meron kailangan ideliver or
ibigay.pareho silang di nagdedeliver or di
ginagawa na dapat gawin walang in delay
sa kanila kahit in fixed na na period na
kelan ideliver or gawin it means no delay
kapag wala pang magcomply. Pero kapag
may isang nagcomply na dito na papasok
ang in delay. This is an example of
automatic delay.
Pinag uusapan dito ay delay, saka
magkakaroon ng delay kapag may
demand.
Meaning of delay
 Ordinary delay is merely the failure to
perform an obligation on time. Di mo
ginawa on time, late.
 Legal delay or default or mora is the
failure to perform an obligation on time
which failure, constitutes a breach of
the obligation. Mora means delay. Di
mo naperform on time.kapag sa legal
delay ibig sabihin nun ay breach of the
obligation. Kapag merong breach ay
may karapatan si obligee or creditor to
 claim for damages. Saka nangyayare
ang legay delay ay kapag nagdemand
na si obligee.
Kinds of delay (mora).
 Mora solvendi or the delay on the part
of the debtor to fulfi ll his obligation (to
give or to do) by reason of a cause
imputable to him; kapag si debtor ang
nadelay. Pedeng madelay sa kaniyang
obligation to give or to do. Kapag sya ay
nadelay in real obligation tawag dito ay
Ex re. Kapag delay in personal
obligation tawag dito ay Ex persona.
 Mora accipiendi or the delay on the
part of the creditor without justifi able
reason to accept the performance of
the obligation; delay on the part of
creditor to accept the performance.
Dito nagkakaroon cerain rights si
debtor.
 Compensatio morae or the delay of the
obligors in reciprocal obligations (like in
sale), i.e., the delay of the obligor
cancels the delay of the obligee, and
vice versa. Parehas ay delay.
Requisites of delay or default by the debtor.
There are three conditions that must be
present before mora solvendi can exist or
its effects arise:
(1) failure of the debtor to perform his
(positive) obligation on the date agreed
upon; ito ay ordinary delay pa lang
(2) demand (not mere reminder or notice)
made by the creditor upon the debtor to
fulfill, perform, or comply with his
obligation which demand, may be either
judicial (when a complaint is filed in court)
or extra-judicial (when made outside of
court, orally or in writing); legal
delay/default or tinatawag na Mora
(3) failure of the debtor to comply with such
demand. Si debtor ang delay
Example: Saitama obliges himself to deliver
to Genos a black 2019 Hyundai Accent with
plate number AAB 8256 on September 15.
 If Saitam fails to deliver the car on
September 15 and no demand was
made by Genos, Saitama is only in
ordinary delay. Hindi pa in legal default
si Saitama dahil pa nag dedemand si
Genos.
 If Genos made a demand on September
20 and Saitama fails to deliver the car,
Saitama is considered in default. Dahil
nagdemand na si Genos ito na ay legal
default/delay na si Saitama. September
20 nagkaroon ng demand kaya ito ang
date ng delay.
 If an action for specific performance is
filed by Genos on September 20, the
payment of damages for default must
commence on September 15 , when he
made the extra-judicial demand.
September 20 nagkaroon ng judicial
demand. Nagfile ng court of action si
Genos for the fulfillment of obligatopn,
para madeliver yung car pero extra
judicial na nung September 15 kung
siya ay nagdemand na ideliver na
ngunit di pa din nadedeliver ni Saitama.
Dun magsisimula ang the right to claim
for damages or dun magsisimula ang
period kung saan delay na si debtor.
Effects of delay.
1. Mora Solvendi: debtor is delay
 The debtor is guilty of breach of the
obligation;
 He is liable for interest in case of
obligations to pay money or damages
in other obligations. May karapatan na
 si creditor na manghingi ng interests sa
loan or damages.
 He is liable even for a fortuitous event
when the obligation is to deliver a
determinate thing. Kahit sa mga bagay
na di inaasahan, liable oa din si debtor
na gawin ang kanyang obligation na
ideliver.
2. Mora Accipiendi: creditor ang delay
(a) The creditor is guilty of breach of
obligation;
(b) He is liable for damages suffered, if any,
by the debtor; magbabayad pa sya ng
danyos
(c) He bears the risk of loss of the thing due;
pedeng mawala yung thing. Di na ito
kasalanan ni debtor si creditor na may
kasalanan di pedeng sisihiin si debtor.
(d) Where the obligation is to pay money,
the debtor is not liable for interest from the
time of the creditor’s delay;
(e) The debtor may release himself from the
obligation by the consignation of the thing
or sum due.
3. Compenstatio Morae: both parties are
in delay.
 There are no delay on the part of both
parties.
 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. Kapag
walang nagpeperform ng kanilang
obligation ay walang delay or
magkeclaim ng damages.
When demand not necessary/ automatic
delay.
(1) When the obligation so provides.
Example: Dr. Kuseno promised to pay
Charanko the sum of P20,000.00 on or
before November 30 without the need of
any demand. Therefore, if D fails to pay on
November 30, he is automatically in
default.kahit di pa magdemand si Charanku
automatic demand ang mangyayare dahil
clear na ang nakalagay ay without the need
of any demand.
The contract of loan between D and C
provides that failure of D to pay any
installment therein stipulated would
mature the entire obligation. Malabo ang
agreement. Kapag installment yan and di
nakabayad ang isa magiging due lahat ng
utang.
It does not state that in such an event, D
shall thereafter be in default. Demand is still
necessary to hold D in default upon failure
to pay any such installments. He is not liable
for interest for default for the whole debt
except from the time that judicial or
extrajudicial demand for payment is made
upon him.
(2) When the law so provides.
Example: payment of taxes such as income
tax,percentage tax or VAT, expanded
withholding tax,etc. May schedule ng
payment yan, Kapag di nabayaran on time
automaticly magsisimula ang computation
ng mga charges &interests, etc.
The partner is liable for the fruits of the
thing he may have promised to contribute
to the partnership from the time they
should have been delivered without the
need of any demand.
(3) When time is of the essence.
Example: delivery of a wedding dress on a
particular date before the wedding. Natural
dapat ideliver to on time or dapat before
the wedding day.
Delivery of balloons on a particular date
when a children’s party will be held.
Delivery of a car to be used in a trip at a
particular time or date.
(4) When demand would be useless
EXAMPLE: S obliged himself to deliver a
specific horse to B on December 5. Through
S’s negligence or deliberate act, or by
reason of a fortuitous event for which S has
expressly bound himself responsible, the
horse died on December 2.
(5) When there is performance by a party in
reciprocal obligations.
Example: peach terry agreed to sell snek his
tv set for 10,000. obligation ni oeach terry
ay ideliver ang tv set pero si snek ay hindi
magbayad. So si snek ang in default /delay.
Kapag nagperform na ang isa matic
indefault or delay na yung isa.
Saka lang magkakaroon ng delay kapag
meron nagdemand. ang demand ay pedeng
judicial and extra judicial.
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.
FNDC - damages
Pede magclaim ng damages si creditor
kapag si debtor ay guilty of FNDC.
GROUNDS FOR LIABILITY
1. FRAUD (DECEIT OR DOLO)
- deliberate or intentional evasion of the
normal fulfillment of the obligation.
-pandaraya or panloloko.nandaya in the
perfoemance of the obligation.
Example: Sisa obliged himself to deliver to
Basilyo 20 bottles of wine, of Yellow Tail
Wine. Sisa delivered 20 bottles knowing
that they contain cheaper wine.
-sisa is guilty of fraud and is liable for
damages to Basilyo.
-incodental fraud dahil committed in the
performance. Nagawa na.
2 TYPES OF FRAUD
 incidental fraud (dolo
incidente)contract obligation
Committed in the performance of an
obligation already exist because of the
contract. It means nung pinerform mo dun
ka nagloko, may panloloko or pandarayang
nagawa. Naperform na ang pandadaya.
 causal fraud (dolo causante)
Fraud employed in the execution of a
contract which vitiates consent. Kung ito ay
may obligation na existing na tapos in the
performance saka nameet ang fraud. Ito
yung sitwasyong kung saan to get the
consent from othe party , nagloko or may
pandaraya na ginawa. Ginamitan ng
matataas na salita pero niloko pa din. Kapag
alam nya na niloloko lang sy ani debtor.
2. NEGLIGENCE (FAULT OR CULPA)
kapabayaan
- any voluntary act or omission, there being
no bad faith or malice, which prevents the
normal fulfillment of an obligation.
-kaya di naperform ang obligation dahil
merong negligence
-failure to exercise the required amount of
care to prevent injury to others.
-kapag ang requirement ay extra ordinary =
care. Kapag ordinary = liable
Example: King is a passenger in a taxi. If an
accident occurs because the driver is going
at 180 kph, and as a result King was injured.
- the owner of the taxi ay liable for damages
or obligation nya na ipagamot or bayaran
ang mga gastusin ni King dahil naging
pabaya syang driver. COMMON CARRIER
3. DELAY (MORA)
- failure to perform an obligation on time
which failure comstitute a breach of the
obligation.
4. CONTRAVENTION OF THE TENOR OF THE
OBLIGATION
- kung ano nakalagay dun at hindi yun ang
sinunod mo. Kapag ginawa mo yung bawal.
Nilabag mo ang pinagbabawal. Ikaw na
mismo ang gumawa hindi fortuitous event.
Example: Taro leased the apartment of
Kong for 20,000 a month to be paid in
advance during the first week of every
month. The obligation of Taro as lessee, is
to pay the stipulated rent. The obligation of
Kong as lessor, is to maintain Taro in the
peaceful possession of the apartment
leased.
- if Taro violates her obligation to pay the
rent , Kong is entitled to eject her from
premises and recover damages.
ART. 1171. Responsibility arising
from fraud is demandable in all
obligations. Any waiver of an action
for future fraud is void.
NOTES:
1. Article 1171 refers to incidental fraud.
Fraud committed in the performance of the
obligation.
2. The court has no power to mitigate or
reduce the damages to be awarded.
Waiver of action
Baka lokohin or lolokohin kita in the future
ah kaya pineform ko na obligation ko. Wag
mo ako kakasuhan. Pirmahan tayo ng
waiver dimo ako kakasuhan.
1. Waiver of action fot future fraud.
- it is void because it is against the law and
public policy. Kahit puamyag ka sa
agreement na yun wala pa din saysay dahil
ito ay void.
Example: Rai promise to deliver 120 cavans
of rice of a particular brand and quality to
Mumen at the rate of 10 cavans a motnh.
- rai cannot make an agreement to Mumen,
hindi porket ay walang agreement ay pede
ka ng magfraud. Kasi void pa din ang waiver
kung sakaling sabihin mo man na lolokohin
mo sy ain the future. Mumen can still bring
action against rai sa damages dahil sa fraud.
- kapag committed na yung fraud or past na
pede na sya humingi ng forgiveness and di
na void yung waiver.
Waiver of action for past fraud
-Nangyare na yung fraud and nanghihingi ng
waiver si debtor na kung pedeng wag mo na
sya kasuhan from past fraud. It is valid.
-the waiver can be considered as an act of
generosity and magnanimity on the part of
the victim.
ART. 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.
NOTES
1. The court has a wide discretion in fixing
the measure of damages. Depending on
circumtances kung magkano ba ang
ichacharge na damages. So hindi pa sya
fixed.
2. Negligence is not as serious as fraud
because it is not deliberate. Kaya mas
magaan ng konti.
3. When both parties are negligent, the
fault of one may cancel or neutralize the
negligence of the other.
Waiver of action
(1) Waiver of action for future negligence is
VALID except where the nature of the
obligation requires extraordinary diligence.
(2) Negligence showing bad faith is
considered equivalent to fraud (waiver for
future negligence of this kind of void).
KINDS OF NEGLIGENCE
1. CONTRACTUAL NEGLIGENCE (CULPA
CONTRACTUAL) - negligence in contracts
resulting in their breach.
2. CIVIL NEGLIGENCE (CULPA AQUIALIANA) -
quasi-delict or tort. One of the sources of
obligation.
3. CRIMINAL NEGLIGENCE (CULPA
CRIMINAL) - negligence resulting in the
commission of a crime. Kapag nakapatay or
self defense.
Example: Boros is the driver of a carefully
driven taxi owned by Monster
Incorporated. In a busy of street of
Morayta, Boros was mesmerized by a
beautiful girl standing at the side of the
street and because of that he didn’t notice
Garo while crossing pedestrian lane. Garo
died upon getting hit by Boros. Kabuto, his
passenger, suffered serious injury.
- hindi sinasadya na makapatay.
Kabuto may bring an action against
Monster Incorporated on the ground of
culpa contractual. (contract of carriage)
- kabuto and monster inc, meron silang
contract.
ART. 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.
Deligence Required
1. That agreed upon by the parties
2. In the absence of stipulation, that
required by law in the particular case
3. In the absence of any provision in the
contract or law, the diligence required of a
good father of a family.
FACTORS TO CONSIDER WHEN
DETERMINING THE ISSUES IN NEGLIGENCE
1. Nature of the Obligation
Example:
- smoking while carrying materials known to
be flammable constitute negligence.
2. Circumtances of the person
- a sleeping seciurity guard while on duty is
guilty of negligence.
3. Circumtances of time
- driving without headlights at night is gross
negligence but doing the night does not
constitute negligence.
4. Circumtances of the place
- driving 100kph in NLEX is permissible but
doing the same Ayala Avenue, Makati is
gross recklessness.
MEASURES OF LIABILITY FOR DAMAGES
Dirk agreed to sell and deliver to Kudo on a
certain date 1,000 kilos of denorado rice for
1,000,000. then, Kudo agreed to sell to be
received from dirk to Buta for 1,100,000.
this contract with Buta was made known to
Dirk. On the date of delivery, Dirk did not
deliver the rice. Kudo bought the rice from
another supplier for 1,100,000.
- kudo is the obligee and dirk is the obligor.
- kudo got so angry so he suffered a heart
attack for which he was hospitalized for 5
days.
-If dirk acted ingood faith, kudo may be
entitled to damages amounting 100,000.
- kapag bad faith naman, magbabayad si
dirk ng 100,000 at ng expenses ni kudo sa
hospital.
ART. 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.
A fortuitous event is any 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 impossible to
avoid.
- di natin kayang hulaan or mapredict ang
dapat mangyare.
FORTUITOUS EVENT OR FORCE MAJEURE
1. ACTS OF MAN- an event independent of
the will of the obligor but not other human
wills. Tao ang may gawa pero di si obligor
ang may kasalanan.
Example: War, fire murder, insurrection
2. ACTS OF GOD (MAJEURE) - events which
are totally independent of the will of every
human being. Hindi ito magagawa ng isang
taoor sinomang tao
Example: Earthquake, flood, rain,
shipwreck, etc.
KINDS OF FORTUTIOUS EVENT
1. Ordinary fortuitous common and which
the contracting parties could reasonably
foresee
Example : rain kaya nating ipredict ang rain
pero di kayang iwasan at pigilan.
2. Extraordinary fortuitous uncommon
and which the contracting parties could
not have reasonably foreseen
Example: fire, war
Requisites of a fortuitous event.
Whether an act of man or an act of God, to
constitute a fortuitous event, it is essential
that:
1. The event must be independent of the
human will or at least of the obligor’s will;
walang may gusto lalong di si debtor ang
may gusto na mangyare.
2. The event could not be foreseen
(unforeseeable), or if it could be foreseen,
must have been impossible to avoid
(unavoidable); di natin maiiwasan. Walang
involve na tao
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; fortuitous event ang dahilan kung
bat di maperform ang obligation. Kung di na
kaya ideliver or masira man.
(3) The obligor must be free from any
participation in, or the aggravation of the
injury to the obligee. Hindi si debtor ang
dahilan or caused. Kunware nasunog bahay
ng kapitbahay nyo and nadawit lang bahay
nyo so di mo kasalanan ito.
Rules as to liability in case of fortuitous
event.
General rule: A person is not responsible
for loss or damage resulting from fortuitous
events. In other words, his obligation is
extinguished. Di naman sinadya nag
forfuitous event.
The exceptions are enumerated below.
(1) When expressly specified by law
(2) When declarded by stipulation. Napag
usapan,napagkasunduan na si debtor ang
may responsibility kung sakali mang may
fortuitous.
(3) When the nature of the obligation
requires the assumption of risk.
ART. 1175. Usurious transactions
shall be governed by special laws.
Meaning of 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. It may be gratuitous or
with a stipulation to pay interest.
-kapag umutang pedeng may gratuitous or
interest.
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.
- sumobra ang taas ng interest.
- 20 %
Requisites for recovery of monetary
interest.
(1) The payment of interest must be
expressly stipulated (Art. 1956.); dapat
napag usapan
(2) The agreement must be in writing;
(3) The interest must be lawful. (Art. 1957.)
dapat ay may sapat na interest.
Kinds of interest
(1) Simple interest. — when the rate of
interest is stipulated by the parties (Art.
2209.);
(2) Compound interest. — when the
interest earned is upon interest due (Arts.
2212, 1959.);
(3) Legal interest. — when the rate of
interest intended by the parties is
presumed by law, as when the loan
mentions interest but does not specify the
rate thereof. (Art. 2209.) The same rate is
allowed in judgments where there is no
express contract between the parties in
anticipation of the same. Its use is not
justified where there is a stipulated rate of
interest in the loan contract;
(4) Lawful interest. — when the rate of
interest is within the maximum allowed by
(usury) law (Secs. 2, 3, Usury Law, Act No.
2655, as amended.); and
(5) Unlawful interest. — when the rate of
interest is beyond the maximum fixed by
law.
Interest rules.
(1) Legal rate. — 12% per annum
(2) Maximum rate:
(a) 12% per annum
(b) 14% per annum
(c) The rate prescribed by the Monetary
Board of the Central Bank.
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. Binayadan ng principal ang
presumption ,binayaran na din interest.
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.
Meaning of presumption is meant the
inference of a fact not actually known
arising from its usual connection with
another which is known or proved.
- di mo talaga alam ang nangyare. Base sa
nakita nating isang bagay, naassume natin
na ganto nangyare dito. Or presumption.
Example: zeno was shot dead. Nobody
witnessed the shooting. Illumi, however,
was seen at the scene of the crime just after
its commission holding a fatal gun. In this
crime, Illumi will be presumed as the person
who killed zeno unless contradicted by
competent evidence.
- assume na si Illumi ang bumaril dahil sy
ang may hawak ng baril.
Two kinds of presumption.
(1) Conclusive presumption. — one which
cannot be contradicted
- even magprovide ng evidence di na
macocotradict ang tinatawag na conclusive
presumption
(2) Disputable (or rebuttable) presumption.
— one which can be contradicted or
rebutted by presenting proof to the
contrary
- di naman talaga sy ang pumatay, pinulot
nya ang baril. Kapag nagpresent sya ng
evidence na di sya pumatay ay lusot na sa
Illumi.
When presumptions in Article 1176 do not
apply.
(1) With reservation as to interest. — di pa
bayad ang interest so di na applicable ang
presumption in art 1176. sinabi na ni
creditor na di pa bayad ang interest
(2) Receipt for a part of principal. —
nakacollect ng 1/4 ng principal. Binayaran
ay portion so it means di applicable ang art
1176.
(3) Receipt without indication of particular
installment paid. —
(4) Payment of taxes. —
(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 to creditors for the
satisfaction of their claims.
(1) exact fulfillment with the right to
damages;
(2) pursue the leviable property of the
debtor;
exercise all the rights and bring all the
actions of the debtor except those inherent
in or personal
(4) ask the court to rescind or impugn acts
or contracts which the debtor may have
done to defraud him when he cannot in any
other manner recover his claim.
(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) (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.
Commodatum is essentially gratuitous. (Art.
1933.)
(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.

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.
- right in obligation is transmissable
Transmissibility of rights.
(1) Prohibited by law. — When prohibited
by law, like the rights in partnership,
agency, and commodatum which are purely
personal in character.