Obligations and Contracts
Nature and Effects
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.
- Art. 1163 refers to an obligation of a specific or
determinate thing.
Types of Obligation According to its Prestation
1. Real Obligation – an obligation to give.
➢ To give specific or determinate thing
➢ To give generic or indeterminate thing.
2. Personal Obligation _ an obligation to do or not
to do.
➢ Positive Obligation (to do)
➢ Negative Obligation (not to do)
Real Obligation: Specific /Determinate Thing
- A thing is specific or determinate if its particularly
designated or physically segregated to others of the
same class. (naka-identify yung thing. kung ano yung
sinabi, yun dapat.)
*Note that In a Specific or Determinate Thing the
debtor cannot substitute the thing with another even
though it has the same class and quality. The debtor
cannot change the thing without the consent of the
creditor.
Example Situations
1. A Honda Civic with a plate number of ABC 123.
2. The D’heygre pierced 02 eyeglasses from gentle
monster.
3. The necklace sold by Kyla
Duties of Debtor to deliver a SPECIFIC/DETERMINATE
Thing
1. Preserve/Take Care of the thing - the debtor has
the duty to take care of the thing due with the
diligence of a good father of a family pending
delivery.
a) Diligence of a good father of a family –
ordinary care.
b) Another standard of care - if the law or the
stipulation of the parties provides for another
standard of care, that said law or stipulation
must prevail.
c) Factors to be considered – the diligence is not
necessarily the standard of care one always
uses in protection of their property. General
Rule: debtor is not liable if his failure to
preserve the thing is due to fortuitous event
(force majeure)
d) Reason for debtor’s obligation – debtor must
exercise the diligence to ensure that the thing
to be delivered would subsist in the same
condition as it was when the obligation was
contracted.
2. Deliver the fruits of the thing (Art. 1164)
3. Deliver the accessions and accessories (Art. 1166)
4. Deliver the thing itself
5. Answer for damages in case of non-fulfillment or
breach (Art. 1170)
Real Obligation: Generic /Indeterminate Thing
- A thing is generic or indeterminate when it refers
only to a class or genus. (naka-identify lang sa class
nung thing. so kahit ano ibigay mo pwede.)
*Note: In a Generic or Indeterminate Thing the debtor
can give anything of the same class as long as it’s the
same kind.
Example Situations
1. A Rolex watch.
2. A sack of rice.
3. If Zeijan’s obligation is to deliver to Dash a Rolex
watch, Zeijan can deliver any watch as long as it’s
a rolex watch.
*note that money is a generic thing
Duties of the Debtor to deliver a
GENERIC/INDETERMINATE 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. (Article 1246)
Obligations and Contracts
Nature and Effects
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.
Personal Obligation: Positive (to do)
- a positive personal obligation is an obligation to
render a service.
Example Situation
1. Dash bound himself to fix Zeijan’s car tomorrow.
2. Itadori bound himself to wash Gojo’s uniform.
Obligations of the Debtor in Positive Personal
Obligation (to do)
a. to do the obligation
b. to bear the expenses of having someone else
comply with the obligation
c. to undo what has been poorly done
d. to bear the expenses of having someone else undo
what has been poorly done
e. To be liable for damages in case of fraud,
negligence, or delay, in the performance of his
obligation, or contravention of the tenor thereof.
Personal Obligation: Negative (not to do)
- a negative personal obligation is an obligation not
to do.
Example Situation
1. Suguru and Nanami agreed not to build any
structure on the boundaries of their properties.
Obligations of the Debtor in Negative Personal
Obligation (not to do)
a. not to do what has been forbidden
b. to undo what has been done that is forbidden (art.
1168)
c. to bear the expenses of having someone else do
what has been done that is forbidden
d. To be liable for damages in case of fraud,
negligence, or delay, in the performance of his
obligation, or contravention of the tenor thereof.
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.
- Art. 1164 refers to the duties of the debtor over a
specific thing, which is to deliver the fruits of the thing.
Different Kinds of Fruits
a) Natural Fruits – spontaneous products of soil, the
young and other products of animals.
e.g., grass, trees, plants on lands without human
labor intervention.
b) Industrial Fruit – produced by lands of any kind
through cultivation of labor.
e.g., vegetables, rice, all products of lands
brought by reason of human labor.
c) Civil Fruits – derived by virtue of juridical relation.
e.g., rents of buildings, price of leases of lands.
*Note: example rin ng fruits is: If si X is nag-deliver ng
dog kay Y then yung dog na yun is buntis, then
considered na fruits yung mga tuta.
Right of creditor to the fruits
The creditor is entitled to the fruits of the thing to be
delivered from the time the obligation to make
delivery arises.
When obligation to deliver fruits arises
1. At the time of “perfection of the contract” - birth of
the contract or the meeting of the minds of the
parties.
2. If the obligation is subject to a suspensive condition
or period, it arises upon the fulfillment of the condition
or arrival of the term. However, the parties may make
a stipulation to the contrary as regards the right of
the creditor to the fruits of the thing.
3. In a contract of sale, the obligation arises from the
perfection of the contract even if the obligation is
Obligations and Contracts
Nature and Effects
subject to a suspensive condition or period where the
price has been paid.
4. In obligations to give arising from law, quasi-
contracts, delicts, and quasi-delicts, the time of
performance is determined by the specific provisions
of the law applicable.
Meaning of personal and real right
1. Personal Right
- is the right or power of a person (creditor) to
demand from another (debtor), as a definite passive
subject, the fulfillment of the latter’s obligation to
give, to do, or not to do.
- It is binding or enforceable only against a particular
person.
- Acquired from the time obligation to deliver arises.
e.g., may utang yung kaibigan mo sa’yo, so may
personal right ka to demand payment.
2. Real Right
- is the right or interest of a person over a specific
thing (like ownership, possession, mortgage) without
a definite passive subject against whom the right
may be personally enforced.
- It is binding or enforceable against the whole world.
- Acquired from delivery (pag delivered na sa’yo
yung thing, may real right ka na)
e.g., may-ari ka ng lupa, tapos may squatter area na
natayo doon, so as a may-ari nung lupa na yun, may
right ka na paalisin sila.
Kinds of Delivery
1. Actual or Constructive delivery (tradition) - the
property changes hands physically.
e.g., A buys cake from B. The delivery made by
B is the actual delivery of the thing due.
2. Constructive Delivery - the physical transfer of
the property is implied.
a) Tradition simbolica (symbolical tradition)
e.g., When the keys of a house are given to
the new owner, the house being the object of
the sale.
b) Traditio longa manu - delivery by mere
consent or pointing out the object
e.g., When pointing out to a van which is the
object of the sale
c) Tradition brevi manu (delivery by short
hand)
e.g., When a tenant already in possession of
a house buys the house, he is renting.
d) Traditio constitutum possessorium
e.g., A house owner, who sells his house,
but remains in possession as tenant of the
same house.
e) Tradition by execution of legal forms
e.g., The execution of public instrument in
selling real properties.
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.
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.
Rights of Creditor if Debtor Failed to Deliver
1. If the thing is SPECIFIC or DETERMINATE:
a) An action for Specific Performance with a right
to indemnity for damages if the debtor is guilty
of fraud, negligence, delay, or contravention in
the performance of the obligation. The
Creditor can compel the debtor to make the
delivery. OR
b) Demand for Rescission or Cancellation of the
obligation with a right to indemnity for
damages if the debtor is guilty of fraud,
negligence, delay, or contravention in the
performance of the obligation. OR
Obligations and Contracts
Nature and Effects
c) Demand payment for damages only, where it *sa accessory, hindi mo na magagamit yung
is the only feasible remedy. principal thing pag walang accessory. (e.g., key of a
house) hindi mo na magagamit yung house if walang
key.
2. If the thing is GENERIC or INDETERMINATE:

a) Ask for compliance of the obligation by the

Rights of creditor to Accessions and Accessories
debtor himself or by third person at the
debtor’s expense. (substituted performance) General Rule: All accessions and accessories are
b) Demand damages from the debtor if the considered included in the obligation to deliver a
debtor is guilty of fraud, negligence, delay, or determinate thing although they may not have been
contravention in the performance of the mentioned. Accessory follows the principal.
obligation.
Exception: It is stipulated otherwise.
*for letter a, if the debtor has obligation to deliver a
generic thing simply ask the debtor to deliver that
generic thing. however, if the debtor is not capable to Art. 1167. If a person obliged to do something fails to
perform that obligation, then he will ask someone do it, the same shall be executed at his cost.
rd
else (3 person) to do the obligation but the debtor
This same rule shall be observed if he does it in
(which is the original debtor) will still bear the
contravention of the tenor of the obligation.
expenses.
Furthermore, it may be decreed that what has been
Where the debtor delays or has promised delivery poorly done be undone.
to separate creditors, he shall be responsible even in
fortuitous events
Three (3) instances contemplated under Art. 1167:
1. Delay (Art. 1169)
1. The debtor fails to perform an obligation to do;
2. Fortuitous Events (Art. 1174)
2. The debtor performs an obligation to do but
contrary to the terms thereof; or
Art. 1166. The obligation to give a determinate thing
3. The debtor performs an obligation to do but in poor
includes that of delivering all its accessions and
manner
accessories, even though they may not have been
mentioned.

Remedies of creditor in positive personal obligation

Meaning of Accessions and Accessories 1. The debtor fails to perform an obligation to do;

a) Accession – fruits of a thing/additions or a) To have the obligation performed by himself,

improvements upon a thing (the principal).
*sa accession magagamit pa rin yung principal thing
whether or not may accession. (e.g., house or things
on a land.) magagamit mo parin naman yung land di
’ba kahit wala yung mga house and trees.
b) Accessories – joined to or included with the
principal thing for the principal thing’s
embellishment, better use, and completion.
or by another, unless personal considerations
are involved, at the expense of the debtor; and
b) To recover damages.
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 upon proper filing of
Complaint) that it be undone if it is still possible to do
what was done.
*in a real obligation where a debtor is to deliver a
generic thing, it can be performed by a third person.
Obligations and Contracts
Nature and Effects
*in the delivery of a specific thing, the debtor can be (2) When from the nature and the circumstances of
compelled to. the obligation it appears that the designation of the
time when the thing is to be delivered or the service
*a specific performance can’t be ordered in a
is to be rendered was a controlling motive for the
personal obligation to do because it may amount to
establishment of the contract; or
involuntary servitude which is prohibited under the
constitution. (3) When demand would be useless, as when the
obligor has rendered it beyond his power to
perform.
Art. 1168. When the obligation consists in not doing,
In reciprocal obligations, neither party incurs in
and the obligor does what has been forbidden him,
delay if the other does not comply or is not ready to
it shall also be undone at his expense.
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.
In an obligation not to do, the duty of the obligor
(debtor) is to abstain from an act. Here, there is no
specific performance. The very obligation is fulfilled in
Meaning of DELAY
not doing what is forbidden. Hence, in this kind of
obligation, the debtor cannot be guilty of delay. 1. Ordinary delay is merely the failure to perform an
obligation on time.
2. Legal delay or default or mora is the failure to
As a rules, the remedy of the obligee is the undoing of perform an obligation on time which failure
the forbidden thing plus damages. However, if it is not constitutes a breach of the obligation.
possible to undo what was done, either physically or
legally, or because of the rights acquired by third
persons who acted in good faith, or for some other Kinds of Delay or Default
reason, his remedy is an action for damages caused
1. Mora solvendi or the delay on the part of the debtor
by the debtor’s violation of his obligation.
to fulfill his obligation (to give or to do);

2. Mora accipiendi or the delay on the part of the

Example: B bought a land from S. It was stipulated
that S would not construct a fence on a certain
portion of his land adjoining that sold to B. Should S
construct a fence in violation of the agreement, B can
bring an action to have the fence removed at the
expense of S.
creditor to accept the performance of the obligation;
and
3. Compensatio morae or the delay of the obligors in
reciprocal obligations (like in sale), teh delay of the
obligor cancels the delay of the obligee, and vice
versa. The net result is that there is no actionable
default on the part of both parties

Art. 1169. Those obliged to deliver or to do something *magkakaroon lang ng delay pag merong demand.
incur in delay from the time the obligee judicially or
extrajudicially demands from them the fulfillment of
their obligation. However, the demand by the Requisites of delay or default by the debtor
creditor shall not be necessary in order that de lay
(mora solvendi)
may exist:
1. Failure of the debtor to perform his (positive)
(1) When the obligation or the law expressly so
obligation on the date agreed upon;
declare; or
2. Demand (not mere reminder or notice) made by
the creditor upon the debtor to comply with his
Obligations and Contracts
Nature and Effects
obligation which demand may be either judicial Unilateral Obligation – only 1 party is liable
(when a complaint is filed in court) or extrajudicial
General Rule: NO DEMAND, NO DELAY.
(when made outside of court, orally or in writing); and
EXCEPTIONS:
3. Failure of the debtor to comply with such demand.
1. When the obligation so provides

e.g., D promised to pay C the sum of P20,000.00 on

Effects of delay
or before November 30, 2020, without the need of
1. Mora solvendi any demand. Therefore, if D fails to pay on November
30, 2020, he is automatically in default.
a) The debtor is guilty of breach or violation of
the obligation;
b) He is liable to creditor for interest;
2. When the law so provides
c) He is liable even for a fortuitous event when
the obligation is to deliver a determinate e.g., under the law, taxes should be paid to the
thing. government on or before a specific date; otherwise,
penalties and surcharges are imposed without the
2. Mora accipiendi
need of demand for payment
a) The debtor is guilty of breach or violation of
the obligation;
b) He is liable for damages suffered, if any, by 3. When time is of the essence
the debtor;
e.g., The making of a wedding dress and the
c) He bears the risk of loss of the thing due;
obligation to deliver it on a specific time to be used by
d) Where the obligation is to pay money, the
the bride on her wedding. Failure to comply with the
debtor is not liable for interest from the time
obligation on a specific date will no longer benefit the
of creditor’s delay;
creditor. In this example, time element is important
e) The debtor may release himself from the
as performance itself.
obligation by the consignation or deposit in
court of the thing or sum due.

3. Compensatio morae - The delay of the debtor
cancels the delay of the creditor and vice versa.
Legally speaking, there is no default or delay of both
parties.
When demand is not necessary to put debtor in
delay
As a general rule, delay by the debtor begins only
from the moment a demand, judicial or extra-
judicial, for the fulfillment of the former’s obligation is
made by the creditor. Without such amount, the
effect of default will not arise. The following are the
exceptions:
4. When demand would be useless
e.g., S obliged himself to deliver specific horse to B on
September 5, 2019. Through S’ negligence or
deliberate act, the horse died on September 02, 2019.
Under this situation, any demand for the delivery of
the horse on September 2 would be useless as S has
made it impossible for him to perform his obligation,
Demand is also unnecessary where it is apparent
that it would be unavailing, as where there has been
a prior absolute refusal by S.
5. When there is performance by a party in reciprocal
obligations

In case of reciprocal obligations, the performance of

one is conditioned upon the simultaneous fulfillment
There are 2 types of obligations in Delay: the
on the part of the other. So, neither party incurs in
unilateral and reciprocal obligations.
delay if the other does not comply or is not ready to
Obligations and Contracts
Nature and Effects
comply in a proper manner with what is incumbent
upon him. This is compensatio morae. From the
moment, however, a party fulfills or is ready to fulfill
his obligation, delay by the other begins.
e.g., S agreed to sell to B his television set for
P10,000.00. The obligation of S is to deliver the
television set while that of B, to pay P10,000.00.
Since no date is set for performance of their
respective obligations, it is understood that it must be
simultaneous. S cannot demand payment if he
himself cannot deliver the television set. From the
moment S delivers the television set, B is in default if
he does not pay S without the need of any demand.
Reciprocal Obligation – obligation where there is no
specific time or period when the obligations or the
corresponding respective obligations of the 2 parties
will be made.
General Rule: delay occurs the moment one party
fulfills his undertaking, while the other does not
comply or is not ready to comply in a proper manner
with what is incumbent upon him.
Exception: Different dates for the performance of
respective obligations are fixed by the parties.
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.
Different Types of Breaches in Obligations
1. Fraud (deceit or dolo)
As a ground for damages, it implies some kind of
malice or dishonesty and it cannot cover cases of
mistake and errors of judgment made in good faith.
It is synonymous to bad faith in that, it involves a
design to mislead or deceive another.
Types of Fraud
a.) Causal Fraud (dolo causante) – fraud in obtaining
consent. (ito yung fraud na tinutukoy sa contracts)
b.) Incidental Fraud (dolo incidente) – fraud in the
performance of the obligation. (this type of fraud is
what art. 1170 is referring to.)
(e.g., Jungwon obliged himself to deliver 15 kilo of
premium coffee beans to Heeseung. The coffee beans
are ready, but before the actual delivery, Jungwon
decided to mix 5 kilos of low-quality coffee beans to
cut cost.)
*yung causal fraud, ginagawa siya before palang ng
pagmi-meet of minds/para maka-kuha ng consent
or mapapayag yung tao, nagawa ka na ng fraud.
Para mapapayag mo yung tao na binibentahan mo,
magsisinungaling ka para lang mapapayag siya.
Example: binibentahan kita ng second hand phone,
tapos habang mina-market ko siya sa’yo sabi ko
hindi siya sira tapos maganda yung quality nya. Pero
nung binili mo na yung phone nalaman mo na sira
pala siya.
*yung incidental fraud naman, ito yung meron ng
meeting of minds, kaso gumawa ka ng fraud nung
mismong thing na binibentahan mo/ginagawa mo.
(see example para mas maintindihan)
2. Negligence (fault or culpa)
It is any voluntary act or omission, there being no bad
faith or malice, which prevents the normal fulfillment
of an obligation.
Types of Negligence
a.) Culpa Aquiliana (quasi-delict) – failure to act
e.g., Wonwoo was playing volleyball in the streets,
while wonwoo was playing, Mingyu, who was walking
back to their home got hit with the ball that wonwoo
was playing, the hit had caused mingyu a wound. In
this situation, is wonwoo obligated to what
happened? Is he liable?
A: yes, wonwoo is liable because he had cause
damage to mingyu. In culpa aquiliana the person
who caused such damages must compensate to their
victim.
Obligations and Contracts
Nature and Effects
b.) Culpa Contractual (contract) – breach of contract

e.g., Ayoko Na University had stated in a contract When is Negligence equivalent to Fraud?
between their university and their student that they
- when there is gross negligence
would provide a proper learning environment to their
student. However, their university isn’t really that - sa gross negligence totally wala ng diligence na ine-
tight in security. One day Sukuna, an outsider, had exert
entered the university and he beaten up Gojo, a
- in an ordinary negligence there’s a lack of diligence
student of Ayoko Na University. In this situation, was
there a culpa contractual in the part of the
university?
Preponderance of Evidence – the more evidence you
A: yes, there is a culpa contractual in the part of the have with the matter, the more likely you’ll win the
university. Since the university lacks security and case.
stated in their contract that they would provide a Proof Beyond Reasonable Doubt – tumitingin sa
proper learning environment (which they didn’t since
quality ng evidence that will really point out that the
an outsider got in and hurt a student.) there is a
person is guilty of what crime they did.
breach of contract since they didn’t comply with
what they stated in the contract.
Art. 1171. Responsibility arising from fraud is
demandable in all obligations. Any waiver of an
c.) Culpa Criminal (delict) – negligence arising from action for future fraud is void.
criminal act.

Art. 1172. Responsibility arising from negligence in

3. Delay (see discussion in Art. 1169)
the performance of every kind of obligation is also
demandable, but such liability may be regulated by
the courts, according to the circumstances.
4. Contravention of the terms of the obligation

This is the violation of the terms and conditions

stipulated in the obligation. The contravention must Art. 1173. The fault or negligence of the obligor
not be due to a fortuitous event or force majeure consists in the omission of that diligence which is
required by the nature of the obligation and
e.g., E leased the apartment of R for P10,000 a month
corresponds with the circumstances of the persons,
to be paid in advance during the first week of every
of the time and of the place. When negligence shows
month. The obligation of E, as lessee, is to pay the
bad faith, the provisions of Articles 1171 and 2201,
stipulated rent. The obligation of R, as lessor, is to
paragraph 2, shall apply. If the law or contract does
maintain E in the peaceful possession of the
not state the diligence which is to be observed in the
apartment leased. If E violates his obligation, R is
performance, that which is expected of a good
entitled to eject him from the premise and recover
father of a family shall be required.
damages. If R does not maintain E in the peaceful
possession of the apartment (as when R is not the
owner), and E is ejected, R may be held liable for Art. 1174. Except in cases expressly specified by the
damages for violation of the terms of his obligation. law, or when it is otherwise declared by stipulation,
The measure of damages to be awarded to E or to R, or when the nature of the obligation requires the
as the case may be, is left to the sound discretion of
assumption of risk, no person shall be responsible
the court in accordance with the provisions of the for those events which could not be foreseen, o r
Civil Code on Damages.
which, though foreseen, were inevitable.
Obligations and Contracts
Nature and Effects
Meaning of fortuitous events 2. When declared by stipulation

A fortuitous event is any event which cannot be 3. When the nature of the obligation requires
foreseen, or which though foreseen, is inevitable. assumption of risk
Stated otherwise, it is an event. Which is either
impossible to foresee or impossible to avoid.
Art. 1175. Usurious transactions shall be governed by
The essence of a fortuitous event consists of being a
special laws.
happening independent of the will of the debtor and
which happening, makes the normal fulfillment of the Requisites for recovery of interest
obligation impossible.
1. The payment of interest must be expressly
stipulated; and

Fortuitous event distinguished from force majeure 2. The agreement must be in writing

1. Act of man - Strictly speaking, a fortuitous event is

an event independent of the will of the obligor but not
of the other human wills
Example: War, robbery, murder, insurrection
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.

The receipt of a later installment of a debt without

2. Act of God - they refer to what is called as force
reservation as to prior installments, shall likewise
majeure or those events which are totally
raise the presumption that such installments have
independent of the will of every human being
been paid.
Examples: Earthquake, flood, rain, shipwreck,
lightning, eruption of volcano
Meaning of Presumption

- a rule of law which permits a court to assume a fact

Requisites of a fortuitous event
1. the event must be independent of the human will;
2. The event could not be foreseen, or if foreseen, is
inevitable;
is true until such time as there is a preponderance
(greater weight) of evidence which disproves or
outweighs (rebuts) the presumption.

3. the occurrence must render it impossible for the

2 Kinds of Presumptions
debtor to fulfill the obligation in a normal manner;
and 1. Conclusive presumption – cannot be rebutted by
additional evidence or arguments. (ina-assume ng
4. the obligor must be free of participation in, or
court na alam ng lahat yung law)
aggravation of, the injury to the creditor

2. Disputable Presumptions - can be rebutted by

Rules as to liability in case of fortuitous event
additional evidence or argument.
A person is not, as a rule, responsible for loss or
damages caused to another resulting from the non-
performance of his obligation due to a fortuitous
event. In other words, his obligation is extinguished.
The exceptions are as follows:

1. When expressly specified by law

Obligations and Contracts
Nature and Effects
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. (1111)

Remedies available to creditors for the satisfaction of

their claims

1. Specific performance with the right to damages;

2. Pursue the leviable property of the debtor;

3. Exercise all the rights and bring all the actions of

the debtor (subrogation); or

4. Rescission

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.

Transmissibility of Rights