LAWS-1013

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Laws 1013 - Code 653

PRELIM LEARNING RESOURCES AND ASSESSMENT
Week 1: Introduction to Law

Law in its broadest sense means any rule of action or norm of conduct applicable to all kinds of action and to all objects of creation. It is in this sense that law includes all
“laws” whether they refer to state la, physical law, divine law, precepts and others.
In its strict sense, law is an ordinance of reason promulgated by competent authority for the common good.
Characteristics:
1. It is a rule of conduct (ordinance).

a. Law serves as a guide of an individual in relation to his fellow and to the community.
b. It is not a mere request, but a decree/order or a command that OUGHT to be followed or obeyed.
c. obligatory
2. a product of reason (just)
a. law is a result of a deliberate process, not whimsical
b. it is in harmony with higher laws
c. must be practical. Must meet the demands not only of the present time but of the future
3. promulgated
a. law in order to effect order or to serve as a guide or rule of conduct must be made known
b. basis of law as obligatory
c. method of promulgation is through publication
d. ignorantia legis non excusat
4. competent authority (source of law)
a. addresses the issue of legitimacy
b. if laws are not prescribed by legitimate authority, the people could not be expected to observe them.
5. For the common good/benefit
a. Ultimate goal of law
b. Laws should be applied not only to a particular group of people. They should be applied to all citizens, regardless of religion, political persuasion and status in
life
c. Salus populi est suprema lex
Classification of law
1. Natural law (eternal law) - Laws derive its force and authority from God. It is superior to other laws. It is binding to the whole world, in all countries at all times
a. Physical law – universal rule of action that governs the conduct and movement of things which are non-free and material
b. Moral law – set of rules which establishes what is right and what is wrong as dictated by human conscience and inspired by the eternal law
2. Positive law - enacted (positive act)
a. Divine law
i. Divine positive law (ten commandments)

ii. Divine human positive law (precepts of church authorities or religious leaders)
a. Public law
i. Constitutional law – fundamental law of the land which defines the powers of the government
ii. Administrative law – fixes the organization and determines the competence of the administrative authorities and which regulates the methods by which the functions
of the government are performed
iii. International law – body of rules which regulated the community of nations
a. Private (civil) law – body of rights which creates duties, rights and obligations and the means and methods of setting courts in motion for the enforcement of rights or
of a redress of wrong
1. Substantive private law – rules which declare legal relations of litigants when the courts have been properly moved to action upon facts duly presented to them
2. Procedural or adjective private law – refers to the means and methods of setting the courts in motion and making the facts known to them and effectuating their
judgments
NOTE: the classification is incomplete, but is sufficient for purposes of introduction to law
Sources of Law
a. Constitution
b. Statutes/Legislation
c. International treaty
d. Executive issuances
e. Administrative orders
f. Ordinance
g. custom
h. court decisions (precedent/ doctrine of stare decisis)
CIVIL LAW
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Branch of Law that treats the personal and family relations of a person, his property and successional rights, and the effects of obligation and contracts. "Civil" is derived
from the Latin "civiles", a citizen. Originally, the word pertained to a member of "civitas" or a free political community (Black's Law Dictionary)
Four of the most important types of civil law deal with 1) contracts, 2) property, 3) family relations, and 4) civil wrongs causing physical injury or injury to property (tort).
CIVIL CODE OF THE PHILIPPINES (Republic Act 386) (June 18, 1949)
HISTORY OF THE CIVIL CODE
The Civil Code is strongly influenced by the Spanish Civil Code, which was first enforced in 1889 within the Philippines, then a colony of Spain. The Spanish Civil Code
remained in effect even during the American colonization of the Philippines. However, by 1940, the Commonwealth Government of President Manuel Quezon had created a
Commission to create a new Civil Code. The Commission was initially headed by Chief Justice Ramon Avanceña. However, the work of the Commission was interrupted by
the Japanese invasion of the Philippines, and its records were destroyed during the Battle of Manila in 1945.
In 1947, President Manuel Roxas created a new Code Commission, this time headed by the former Dean of the University of the Philippines College of Law Jorge Bocobo.
Among the members who sat on the new Commission were future Supreme Court Associate Justice Francisco R. Capistrano, and future Vice-President Arturo Tolentino.
The Commission completed the final draft of the new Civil Code by December 1947, and this was submitted to Congress, which enacted it into law through Republic Act
No. 386. The Civil Code took effect in 1950.
FEATURES OF THE CIVIL CODE
The Civil Code is divided into 5 “books”, with a specific book covering persons and family relations; property; succession; obligations and contracts; and special contracts.
Special contracts encompasses several classes of contracts as sales, agency, and partnership. The law on torts and damages is found in Book V, although developments in tort
and damages law have been guided less by the Code than by judicial precedents.
Reference:
https://thecorpusjuris.com/legislative/republic-acts/ra-no-386.php (accessed August 14, 2021)
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Week 2: General Provisions

Week 2/ Lesson 2 – General Principles/Provisions
Articles 1156 - 1162
Introduction to Obligations
Topic:
Learning Outcomes:
To guide students in the study of legal principles relating to obligations and contracts by exposing them to relevant primary and seco
materials and facilitating discussions on the application of these principles to actual or hypothetical cases.
LEARNING CONTENT
Introduction:
“The law is the witness and external deposit of our moral life. Its history is the history of the moral development of the race. The practice of it, in
spite of popular jests, tends to make good citizens and good men.”
― Oliver Wendell Holmes Jr., The Path of the Law
Dear my Students,
Welcome to your new journey into studying one of the imperative facets of law, as part of your curriculum for your particular college degree, you
will be needed be take courses on particular subjects in law. This is your first one – LAWS 1013 – Obligations and Contracts. As we commence
your studies, I want you to reflect on the terms “OBLIGATION” and “CONTRACT” how are these terms relevant to you now as student. Take a
moment to think deep and reflect. Read the quote or passage above that I provided for you.
I hope that studying this course will remind you of your “obligation” to do well on you studies as well as all your endeavors in life.
On another note, in order to appreciate the lessons in this course, it is important to always go back and read side by side with this module the
provisions of the law itself. A soft copy of the Civil Code of the Philippines will be sent to your email or included in the LMS as resource for your
ready reference. Please do not treat the modules as stand-alone reference for the subject, the lessons here are expositions of the provisions of
the law which we are studying together.
Further, the explanations, principles and doctrines which the law is ought to be understood and interpreted come from Supreme Court decided
cases which from time to time are discussed and mentioned in the modules, they too, would be of great contribution in understanding the
lessons. We shall in one of our synchronous classes labor to understand how Supreme Court decisions play important role in understanding our
subject.
Lesson Proper:
PRELIMINARY TOPICS:
An obligation is a juridical necessity to give,to do or not to do. – Article 1156 Civil Code
The term obligation is derived from the Latin word “obligatio” which means a “tying” or “binding.”
1) It is a tie of law or a juridical bond by virtue of which one is bound in favor of another to render something — and this may consist in giving a thing,
doing a certain act, or not doing a certain act.
2) Manresa defines the term as “a legal relation established between one party and another, whereby the latter is bound to the fulfillment of a
prestation which the former may demand of him.”
3) Article 1156 gives the Civil Code definition of obligation, in its passive aspect. Our law merely stresses the duty of the debtor or obligor (he who has
the duty of giving, doing, or not doing) when it speaks of obligation as a juridical necessity.
Obligation is a juridical necessity because in case of non-compliance, the courts of justice may be called upon to enforce its fulfillment or,
in default thereof, the economic value that it represents. In a proper case, the debtor may also be made liable for damages, which represent the
sum of money given as a compensation for the injury or harm suffered by the creditor or obligee (he who has the right to the performance of the
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obligation) for the violation of his rights. In other words, the debtor must comply with his obligation whether he likes it or not; otherwise, his failure will
be visited with some harmful or undesirable legal consequences. If obligations were not made enforceable, then people can disregard them with
impunity. If an obligation cannot be enforced, it may be only a natural obligation.
NATURE OF OBLIGATIONS UNDER THE CIVIL CODE
Obligations which give to the creditor or obligee a right of action in courts of justice to enforce their performance are known as civil obligations. They
are to be distinguished from natural obligations which, not being based on positive law but on equity and natural law, do not grant a right of action to
enforce their performance although in case of voluntary fulfillment by the debtor, the latter may not recover what has been delivered or rendered by
reason thereof. (Art.* 1423.)
ESSENTIAL ELEMENTS OF AN OBLIGATION
The following are the essential elements of an obligation:
1.JURIDICAL TIE OR VINCULUM JURIS OR EFFICIENT CAUSE- the efficient cause by virtue of which the debtor becomes bound to perform the
prestation (Pineda, 2000).
2.ACTIVE SUBJECT [CREDITOR OR OBLIGEE]- The person demanding the performance of the obligation. It is he in whose favor the
obligation is constituted, established, or created.
3.PASSIVE SUBJECT [DEBTOR OR OBLIGOR] - The person bound to perform the prestation to give, to do, or not todo.
4.OBJECT OR PRESTATION - The subject matter of the obligation which has a corresponding economic value or susceptible of pecuniary
substitution in case of noncompliance. It is a conduct that may consist of giving, doing, or not doing something.
NOTE: Absence of any of the first three makes the object void.
EXAMPLE
A promises to paint B’s picture for B as a result of an agreement.
(Here A is the obligor, B is the Obligee; the painting of B’s picture is the object or prestation; the agreement or contract is the efficient
cause.)
CONCEPT OF PRESTATION
A prestation is an obligation; more specifically, it is the subject matter of an obligation - and may consist of giving a thing, doing or not doing a certain
act. The law speaks of an obligation as a juridical necessity to comply with a prestation. There is a “juridical necessity” for non-compliance can result
in juridical or legal sanction.
Reminder: It is NOT THE OBJECT which is the prestation but rather it is the act of giving, doing or not doing.
So using the example above, B’s picture is not the prestation but it is the act of painting B’s picture.
FORMS OF OBLIGATION
(1) As a general rule, the law does not require any form in obligations arising from contracts for their validity or binding force.
(2) Obligations arising from other sources do not have any form at all.
KINDS OF OBLIGATION ACCORDING TO SUBJECT MATTER
Note: More of the kinds of obligation will be discussed in the succeeding modules
From the viewpoint of the subject matter, obligation may either be:
(1) Real obligation (obligation to give) or that in which the subject matter is a thing which the obligor must deliver to the obligee; or
(2) Personal obligation (obligation to do or not to do) or that in which the subject matter is an act to be done or not to be done.
There are thus two (2) kinds of personal obligation:
(a) Positive personal obligation or obligation to do or to render service (see Art. 1167.); and
(b) Negative personal obligation or obligation not to do (which naturally includes obligations “not to give”). (see Art. 1168.)
SOURCES OF OBLIGATIONS (how obligation arise)
1. Law (obligation ex lege)- like the duty to pay taxes and to support one’s family
2. Contracts (Obligation ex contractu)– like the duty to repay a loan by virtue of an agreement
3. Quasi-contracts (Obligations ex quasi contractu) – like the duty to refund an “over change” of money because of the quasi-contract of
solution indebiti or “undue payment”
4. Delict, crimes or Acts or Omissions Punishable by Law (Obligation ex malificio or ex delicto) – like the duty to return a stolen carabao;
5. Quasi-delicts or torts – (obligation ex quasi-delicto or ex-quasi-maleficio, Culpa aquiliana) – like the duty to repair damage due to
negligence.
This enumeration is exclusive. No obligation exists if its source is not one of those enumerated in Art. 1157 of the NCC (Navales v. Rias,
G.R. No. L3489, September 7, 1907).
NOTE: ACTUALLY, THERE ARE ONLY TWO SOURCES (I.E., LAW AND CONTRACTS) BECAUSE OBLIGATIONS ARISING FROM
QUASICONTRACTS, DELICTS, AND QUASI-DELICTS ARE IMPOSED BY LAW (LEUNG BEN V. O’BRIEN, 38 PHIL. 182).
Time of perfection (when will obligation arise)
General Rule:
Law – from the time designated by the law creating or regulating them;
Contracts– from the time of the perfection of the contract e.g. meeting of the minds
Exemption:
1. When the parties made a stipulation on the right of the creditor to the fruits of the thing;
2. When the obligation is subject to a suspensive condition, from which it arises upon fulfillment of the condition;
3. When the obligation is with a period; there is already an existing obligation, but it is only demandable when the period expires or becomes due.
Quasi Contracts, delicts, quasi-delicts – from the time designated by the law creating or regulating them.
LEGAL OBLIGATIONS or Obligation Ex Lege (article 1158)
Obligations derived from law are not presumed. Only those expressly determined in the Code or in special laws are demandable and shall be
regulated by the precepts of the law which establishes them and as to what has not been foreseen by the provisions of Book IV of NCC (NCC, Art. 1158).
Characteristics of a legal obligation
1. Does not need the consent of the obligor;

2. Must be expressly set forth in the law creating it and not merely presumed; and
3. In order that the law may be a sourceof obligation, it should be the creator of the obligation itself (NCC, Art. 1158).
Determining whether an obligation arises from law or from some other source
1. Arises from law if it establishes obligation;

2. Arises from the act itself if the law merely recognizes the existence of an obligation generated by an act (Manresa).
Examples:
1. According to Art. 2014 of the NCC, a loser in a game of chance may recover his loss from the winner, with legal interest from the time he paid the
amount lost (Leung Ben v. O’Brien, G.R. No. L-13602, April 6, 1918);
2. The obligation of the spouses to support each other;
3. The obligation of the employers under the Worker’s Compensation Act;
4. The obligations of the owners of the dominant and servient estates in legal easements and others scattered in the NCC and in special laws
5. The obligation to pay taxes.
CONTRACTUAL OBLIGATIONS (Article 1159)
Requisites of a contractual obligation
1. It must contain all the essential requisites of a contract (NCC, Art. 1318); and
2. It must not be contrary to law, morals, good customs, public order, and public policy.
Rules governing the obligations arising from contracts
General Rule:These obligations arising from contracts shall be governed primarily by the stipulations, clauses, terms, and conditions of the
parties’ agreements.
Exemptions: Contracts with prestations that are unconscionable or unreasonable (Pineda, 2009).
Binding force of obligation ex contractu
Obligations arising from contracts have the force of law between the parties and should be complied with in good faith (NCC, Art. 1159). This
is known as the “principle of obligatory force of contracts” the contract (Pineda, 2000).
Good faith is performance in accordance with the stipulation, clauses, terms, and conditions of the contract.
General Rule:Neither party may unilaterally evade his obligation in the contract.
Exemptions: Unilateral evasion is allowed when the:
1. Contract authorizes such evasion; or

2. Other party assents thereto.
Difference between an Obligation and Contract
An OBLIGATION is the result of a contract (or some other source). Hence, while a CONTRACT, if valid, always results in an obligation, not all
obligations come from contract.
Be it noted that, however, from another viewpoint that a contract may itself be the result of an obligation. Thus, if P engages A as the former’s agent,
we have the contract of agency. As an agent, A has the obligation, say to look around for clients or buyers, as in the real estate business. As a result
of such obligation, A may enter into a contract of sale with C, a costumer. The contract of sale itself results in the obligations to pay and to deliver. The
obligation to deliver may result in a contract of carriage.
The so-called INNOMINATE CONTRACTS
For want of an express name, the following are termed “contratos innominados”
Do ut des – I gave that you may give.

Do ut facias – I give that you may do.
Faciout des – I do that you may give.
Faciout facias – I do that you may do.
QUASI-CONTRACT (Art. 1160)
A juridical relation arising from lawful, voluntary, and unilateral acts based on the principle that no one shall be unjustly enriched or benefited at the
expense of another (NCC, Art. 2142).
Distinguished from “implied contracts”
An implied contract, in the proper sense, is a contract which arises when the intention of the parties is not expressed, but an agreement in fact,
creating an obligation, is implied or presumed from their acts, or where there are circumstances which show a mutual intent to contract. An implied contract
requires consent while a quasi-contract, being a unilateral contract, does not. The basis of an implied contract is the will of the parties while the basis of a
quasi-contract is law, to the end that there be no unjust enrichment (Rabuya, 2017).
Characteristics of a quasi-contract
1. It must be Lawful;
2. It must be Unilateral; and
3. It must be Voluntary
Presumptive consent
Since a quasi-contract is a unilateral contract created by the sole act(s) of the gestor, there is no express consent given by the other party. The
consent needed in a contract is provided by law through presumption (Pineda, 2000).
Principal forms of quasi-contracts
1. Negotiorum gestio (inofficious manager) – Arises when a person voluntarily takes charge of the management of the business or property of another
without any power from the latter (NCC, Art. 2144);
2. Solutio indebiti (unjust enrichment) – Takes place when a person received something from another without any right to demand for it, and
the thing was unduly delivered to him through mistake
NOTE: The delivery must not be through liberality or some other cause.
Query: is a Quasi-Contract an Implied Contract?
Ans: No, because in a quasi-contract (unlike in an implied contract) there is NO meeting of the minds.
Examples of Quasi-Contracts
When
1. during a flood, fire, or other calamity, property is save from destruction by another person without the knowledge of the owner, the latter is
bound to pay the former just compensation. (Article 2168, Civil Code)
Any
2. person who is constrained to pay the taxes of another shall be entitled to reimbursement from the latter. (Article 2175, Civil Code)
DELICT or EX DELICTO
Pertinent Provision of the Revised Penal Code (RPC)
Article 100, RPC says, “Every person criminally liable for a felony is also civilly liable.” The reason lies in the fact oftentimes the commission of a crime
causes not only moral evil but also material damage. If no material damage is done, civil liability be enforced.
Civil Action Implicitly Instituted in Criminal Case
As a general rule, whenever a criminal action is instituted, the civil action for the civil liability is also impliedly instituted together with the criminal
action. (Rule 3, Section 1, Revised Rules of Court)
Liability of an Insane Criminal
An insane man who commits a crime is exempted from criminal liability, but his guardian can be held civilly liable unless the latter was diligent in his
task of taking care of the insane. If there is no guardian or the guardian is insolvent, the property of insane man can be held liable. (See Arts. 12 and
101, RPC).
Effect of DEATH of Criminal Offender pending trial
Buenaventura Belama vs. Marcelino Polinar
L-24098, Nov. 18, 1967
FACTS: the defendant in a criminal case for physical injuries died before final judgment.
ISSUE: is his civil liability extinguished?
HELD: No, his civil liability is not extinguished for, after all, in Art. 33 of the Civil Code, there can, in the case of physical injuries, still be an independent action. The
action will be directed against the administrator of the estate, the obligation having become the obligation of the heirs; but of course the liability cannot exceed the
value of inheritance.
Effect of ACQUITTAL in criminal Case
Suppose the defendant in a criminal case is acquitted, can he still be held liable civilly?
ANS: it depends
1. If the reason why there was an acquittal was because the accused could not have acquitted the act, , no civil action can later on be brought.
2. If the reason for acquittal was because of exempting circumstance (as in case the defendant is insane) he would still be civilly liable
3. If there is an independent civil action allowed by the law, civil liability may still arise if this action is instituted and the defendant’s liability is proved by mere
preponderance of evidence (because while guilt beyond reasonable ground might not have proved, it would be a simpler matter to prove guilt by mere
preponderance of evidence) eg.Estafa case
QUASI-DELICT (Art. 1162)
A quasi-delict is a fault or act of negligence (or omission of care) which causes damages to another, there being no pre-existing contractual relations between the
parties.
Culpa Aquiliana (quasi-delicts) can refer to acts which are criminal in character, whether the same be voluntary or negligent.
Examples
1. While driving a car recklessly, Pedro injured a pedestrian.

2. Pedro while cleaning his window sill, caused a flower pot to fall on the street, breaking the arms of his neighbor.
Note: in the above examples, Pedro can also be charged with the crime of physical injuries thru simple or reckless imprudence.
Definition of NEGLIGENCE (Culpa )
1. Negligence is the failure to observe, for the protection of the interest of another person, that degree of care, precaution and vigilance which the circumstances justly
demand, whereby such other person suffers injury. (U.S. vs Barrias, 23 Phil. 434)
2. As defined by the Civil Code, negligence is the omission of that diligence which is required by the circumstances of person, place, and time. (Art. 1173)
Test for determination of Negligence
“The test in determining whether a person is negligent…is this: Would a prudent man (in his position) foresee harm to the person injured as a reasonable
consequence of the course about to be pursued? If so, the law imposes a duty on the actor to refrain from that course, or to take precaution against its mischievous
results, and the failure to do so constitutes negligence. Reasonable foresight of harm, followed by the ignoring of the admonition born of this provision, is the
constitute fact of negligence.” (Picart vs Smith, 37 Phil. 890)
Requirements before a person can be held liable for Quasi-Delict
1. there must be fault or negligence attributable to the person charged;

2. there must be damage or injury
3. there must be a direct relation of cause and effect between the fault or negligence on the one hand and the damage or injury on the other hand (proximate cause)
NOTE:
1.
Proximate Cause is that adequate and efficient cause, which in the natural order of events, necessarily produces the damages or injury complained of.
in the case of Tuason vs Luzon Stevedoring Corp..,L-13541, January 28, 1961, the Supreme Court held that since the plaintiff, Eduardo Tuazon, was
travelling at a very high speed and on the wrong side of the road, his negligence was the proximate cause of the accident which badly injured him, and
therefore he cannot recover damages from the other party in the collision.
There are instances when “although there is damage, there is no legal injury or wrong” (damnum absque injuria – damage without legal injury ) .
(Example: if carefully driven car causes damage to a pedestrian because the driver was suddenly struck by lightning, this is an instance of damage
without injury)
*** END of LESSON 1***
REFERENCES
Textbooks
De Leon, Hector S & De Leon , Hector Jr.. (2010). Obligations and Contracts (pp.1-9)
Paras, Civil Coe of the Philippines (Annotated),Book IV, 16th Edition 2008
Online Reference
https://www.goodreads.com/work/quotes/1590051-the-path-of-the-law
www.lawphil.net
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Week 3 and 4: Nature and Effect of Obligation

LAWS 1013/1023 - Law on Obligations and Contracts
Week 3-4/ Lesson 3-4 – Nature and Effect of Obligations
Articles 1163 - 1178
Topic: Nature and Effect of Obligations
Learning Outcomes:
To guide students in the study of legal principles relating to the nature and effects of obligations by exposing them to relevant prim
secondary materials and facilitating discussions on the application of these principles to actual or hypothetical cases.
LEARNING CONTENT
Article 1163. Every person obliged to give something is also obliged to take care if 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. (1094a)
Reason behind Art.1163:
the obligation to deliver a thing would be illusory if the debtor were not also obliged to preserve it. (Tolentino)
Effect of breach: Debtor who fails to exercise the diligence of a good father of a family in preserving the thing can be held liable for damages. (Tolentino)
* Note: Art. 1163 can be read in conjunction with Art. 1173.
3 kinds of prestation in obligations:
To give - real (there is some physical thing which may be the subject of possession, the delivery of which completely discharges the obligation)
To do - positive personal obligation
Not to do - negative personal obligation (non-fulfillment is resolved in the end by the payment of an indemnification of damages)
Obligation to do or not to do
Perfection of the obligation devolves upon the person himself who is bound by the obligation
Obligation to give/to deliver
Intimately connected with the thing that is the subject matter of relation
Definition: That which has for its object the delivery of a thing which the obligor must deliver to the obligee because of whatever right the latter may
have acquired over the same (Caguioa)
Classification of Obligation to give/deliver:(distinction lies purely and exclusively on the will of parties or under the norms of law)
1. Specific obligation
2. Generic obligation
SPECIFIC OBLIGATION
an obligation to give a specific or determinate thing
*SPECIFIC/DETERMINATE THING
a thing determined individually in such a manner that it cannot be substituted with another
object is particularly designated or physically segregated from all others of the same class; object is a concrete, particularized thing, indicated by its
own individuality (Jurado)
one that is individualized and can be identified or distinguished from others of its kind (Tolentino)
- examples: white horse which won the Senior Grand Derby in 1979, Samsung G600 G-660#1-1G-6608 PC
NOTE:
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the very same thing promised must be delivered by the debtor and he cannot substitute said thing with another although the substitute is more
valuable than that agreed upon unless the creditor agrees to the substitution (Art. 1206 par.1)
3 accessory obligations of debtor in an obligation to give (deliver)
1. obligation to take care of it with the proper diligence of a good father of a family (Art.1163);
2. to deliver the accessions and accessories although the same may not have been mentioned (Art.1166);
3. to deliver the fruits from the moment the obligation to deliver arises (Art.1164)
GENERIC OBLIGATION
has for its object a genus an object that is determined only by the class to which it pertains (incertum corpus)
delivery of a thing belonging to a specie stipulated, usually those which are fungible and those which are determined by amount, number or measure
an obligation to give a generic thing
*GENERIC/INDETERMINATE THING
the object is one whose determination is confined to that of its nature – to the genus to which it pertains (Jurado)
one that is indicated only by its kinds, without being designated and distinguished from others of the same kind (Tolentino)
examples: ten white horses, Samsung G600, Acer laptop
2 Purposes of obligations to give/deliver: (Caguioa)
1. To transfer title/ownership (e.g. contract of sale or barter)

2. To transfer merely possessions (commodatum—Art. 1933, by the contract of loan, one of the parties delivers to another, either something not
consumable so that the latter may use the same for a certain time and return it, in which case the contract is called a commodatum )
Kinds of Delivery
Delivery may be either actual or constructive.
1. Actual delivery (or tradition) –where physically, the property changes hands. Example: if A sells B a fountain pen, the giving by A to B of the fountain
pen is actual tradition.
2. Constructive delivery – that where the physical transfer is implied. This may be done by:
a. Tradition simbolica (symbolical tradition – (as when the keys of a bodega are given)
b. Tradition longa manu (delivery by mere consent or the pointing out of the object) – Example: pointing out the car, which is the object of the sale.
c. Tradition brevi manu–(delivery by the short hand; that kind of delivery whereby a possessor of a thing not as owner, becomes the possessor as
owner) (example: w hen a tenant already in possession buys the house he is renting)
d. Traditio constitutum possessorium– the opposite of brevi manu; thus, th e delivery whereby the possessor of a thing as an owner, retains
possession no longer as an owner, but in some other capacity (like a house owner, who sells a house, but remains in possession as tenant of the
same house)
e. Tradition by the execution of legal forms and solemnities(like the execution of public instrument selling land)
Other form of classifying obligations in general: (Caguioa)
1. Positive- obligations which have for their object to give or to do

2. Negative - restrains the obligor from delivering or doing something which he could do where it not for the obligation
Diligence of a good father of a family (BONUS PATER FAMILIAS)
That reasonable diligence which an ordinary prudent person would have done under the same circumstances
general legal standard of care or degree of diligence the law requires in obligation to deliver a thing
Degree of diligence required
That agreed upon; that which is required by the nature of the obligation an d corresponds with the circumstances of a person, time and plaace. (Art.
1173, Civil Code). This is really a diligence of a good father of a family.
In the absence of such, that which is required by the law;
General Rule: In the absence of the foregoing, diligence of a good father of a family (minimum standard of dilgence)
Exceptions:
1. Common carriers requiring extraordinary diligence (NCC, Arts. 1998-2002);

2. Banks require the highest degree of diligence, being imbued with public interest.
Circumstances that should be taken into consideration in determining the degree of diligence: (Caguioa)
nature of the obligation depending on the circumstances of the debtor

nature of the obligation depending on the time of the performance of obligation
nature of the obligation depending on the place of the performance of the obligation
OBLIGATIONS OF A DEBTOR IN AN OBLIGATION TO GIVE/DELIVER:
BASIS Specific Generic
What the obligation consist of Deliver the thing agreed upon (NCC, Art 1165). Deliver the thing which is neither of superior nor inferior quality if
quality and circumstances have not been stated by the parties. (NCC,
Art.1246).
Take care of the thing with the proper diligence of a good father of a
If the object is generic, but the source is specified or delimited, the
Required diligence to be observed family unless the law requires or parties stipulate another standard of
obligation is to preserve the source
care (NCC, A rt.1163).
Delivery of another thin g within the same genus as the thing promised
Deliver all accessions, accessories, and fruits of the thing even though
What delivery comprises of if such thing is damaged due to lack of care or a general breach is
they may not have been mentioned (NCC, A rt. 1166)
committed.
Pay damages in case of breach of obligation by reason of delay, fraud Pay damages in case of breach of obligation by reason of delay, fraud,
Effects of breach of obligation
, negligence, contravention of the tenor thereof (NCC, Art. 1170). negligence, contravention of the tenor thereof (NCC, Art. 1170).
Obligation is not extinguished (genus nun quam peruit – genus never

Effect of fortuitous event Fortuitous event extinguishes the obligation.
perishes).
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. (1095)
General rule: The creditor or obligee, in an obligation to deliver a determinate thing, is entitled to the fruits from the time the obligation to deliver arises.
KINDS OF FRUITS
1. Natural fruits – spontaneous products of the soil and the young and other products of animals (Art.442)
2. Industrial fruits – produced by lands of any kind through cultivation or labor (Art. 442)
3. Civil fruits – rents of buildings, price of leases of lands and other property and the amount of perpetual or life annuities or other similar income (Art.442)
Nature of the right of the creditor with respect to fruits
Before delivery – Personal right;

After delivery – Real right.
Distinctions between personal and real rights
Personal Right Real Right
power belonging to one person to demand of another, as a definite passive subject, the power belonging to a person over a specific thing, without a passive subject individually
fulfillment of a prestation to give, to do, or not to do (Tolentino) determined, against whom such right may be personally exercised
jus in re - right enforceable against the whole world (e.g. right of ownership, possession,
jus ad rem - right enforceable only against a definite person or group of persons
usufruct, or easement)
Note:
Before delivery, the creditor, in obligations to give, has merely a personal right against the debtor – a right to ask for delivery of the thing and the fruits
thereof; ownership does not pass to the creditor
Once the things and fruits delivered, the creditor acquires real right over such which is enforceable against the whole world à the creditor only acquires the
right of ownership over the thing and the fruits once they are delivered to him.
*When does the obligation to deliver the thing and the fruits arise?
1. Obligations arising from contracts
From the time designated by the provisions of the Civil Code or of special laws creating or regulating them
General rule: from the moment of the perfection of contract (basis: Art.1537)
Exceptions to the general rule:
In case there is a contrary stipulation of the parties with respect to the time when the thing or fruits shall be delivered.
If the obligation is subject to a suspensive condition à obligation to deliver the thing as well as the fruits shall arise only from the moment of the
fulfillment of the obligation; otherwise stated, from the moment the condition happens (Art.1187)
suspensive condition – the happening or fulfillment of the condition results in the birth of the obligation
If the obligation is subject to a suspensive term or period à obligation to deliver arises only upon the expiration of the designated term or period
Reason/justification of the article: found in the corresponding liability of the creditor for any loss that is occasioned to the property, since he bears
the same from the moment of the perfection of the contract.
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.
Remedies of the creditor in case of failure to deliver the thing due:
The following are the remedies of the creditor in case of failure to deliver the thing due (Pineda, 2000)
Determinate Generic
To compel specific performance, for the debtor to make the delivery of the very thing
agreed upon (when the debtor does not comply with what he has promised and the creditor
demands that he fulfill the same) To ask for performance of the obligation
NOTE: Under Art. 1244 par.1, the debtor of a thing cannot compel the creditor to receive a NOTE 1: the delivery of a thing belonging to the species stipulated will be sufficient and
different one, although the latter may be of the same value as, or more valuable than that hence, it is not absolutely necessary for the debtor to make the delivery himself, since the
which is due. delivery of anything of the same species will fulfill the obligation. It may be performed by
another, but at the expense of the debtor. (substitute performance)
NOTE 2: Creditor can only ask for the delivery of a thing or object belonging to the class or
genus stipulated which must be neither of superior nor inferior quality (Art.1246)
Rescission (action to rescind under NCC, Art.1380). To ask that the obligation to be complied with at the expense of the debtor
The creditor may ask a third person to perform the obligation and all expenses incurred
Resolution (action for cancellation under NCC, Art.1191).
shall be charged against him
To recover damages for breach of the obligation, in both cases (NCC, Art. 1170).
NOTE: May be exclusive or in addition to the above-mentioned remedies
Requisites for substitute performance:
There be non-fulfillment of the obligation either totally or partially whether non-performance or mere delay, and the same is imputable to the debtor
Specific performance is not possible
There exists a compensable damage or injury
There is a casual relation as of cause and effect between the non-fulfillment of the obligation and the damage done. The indemnification for damages
covers both the injury suffered (damnum emergens or daño emergente) and the loss of profits (lucrum cesans or lucro cesante)
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. (1097a)
Accessions—those things incorporated or attached to the principal either naturally or artificially (e.g., alluvion, buildings, constructions, etc.)
Accessories—those things which although not incorporated to the principal are added to the same for its completeness, use, perfection or embellishment
(e.g., keys to a house, tools of a car, etc)
General Rule: Everything that is attached, naturally or artificially, to the principal thing, as well as that which serves to complete it, even if not attached to it,
must be delivered together with it.
Exception: When the parties agree to exclude any accession or accessory of the thing.
Right by accession – right corollary to ownership of property which gives the owner the right to everything produced by the property (FRUITS) or which is
incorporated or attached thereto, either naturally or artificially. (Art.440)
Summary:
1. Obligations of debtor in determinate obligations:
To perform the obligation specifically.

To take care of the thing with the proper diligence of a good father of a family.
To deliver all accessions and accessories of the thing even though they may not have been mentioned.
To be liable for damages in case of breach of the obligation by reason of delay, fraud, negligence or contravention of the tenor thereof.
2. Obligations of debtor in generic obligations:
To deliver a thing which is neither of superior nor inferior quality. (Art. 1246)
To be liable for damages in case of breach of the obligation by reason of delay, fraud, negligence or contravention of the tenor thereof.
an obligation to deliver a generic thing, the loss or destruction of anything of the same class or genus as that which constitutes the object thereof
shall not extinguish the obligation (the genus of a thing can never perish) (art. 1263)
Art. 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. (1098)
Obligations to do
those obligations which have for their object a prestation consisting of performing a certain activity, physical or intellectual, distinct from that of the
delivery of a thing (Caguioa)
difference from an obligation to give:
obligee or creditor does not possess the power to compel the obligor to comply with his obligations
reason: the law recognizes the individual’s freedom or liberty to choose between doing that which he has promised to do and not doing it.
General rule in obligations to do (or not to do):
The debtor must perform the act as promised and cannot substitute the same with another act of forbearance, unless of course with the consent of the
creditor or in case the obligation is facultative. (Art.1244, par.2)
Note: (from Caguioa)
The act to be performed is either very personal or not.

*if very personal - when the qualifications of the debtor are involved; the debtor is the only one that must perform it (specific singer or painter)
*if not personal – performance by an agent is permitted (substitute performance)
Effects of breach
In positive personal obligations to do, if the obligor fails to do that which he has obligated himself to do, the obligee can have the obligation performed
or executed at the expense of the former. (Art. 1167, par.2)
In case the debtor should have performed the act agreed upon in contravention of the agreement, or in a manner that is improper or inappropriate, the
same thing shall be ordered undone and performed by another at the expense of the debtor should he refuse to do it all over again.
Obligee can also demand for damages by reason of the breach. (Art. 1170)
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.
(1099a)
Obligation not to do
Negative personal obligations –
the object of the obligation is realized or fulfilled so long as that which is forbidden is not done by the obligor (Jurado)
those obligations whose object is the abstention of the debtor from whatever act which otherwise he could perform (Caguioa)
This type of obligation carries with it no accessory obligation and by its nature is purely personal to the debtor and consequently, he himself must
abstain or refrain from performing the conditions prohibited and cannot delegate the same to an agent, except when there is consent from the
creditor.
Delay or mora is NOT possible unlike in positive obligations; obligation is either fulfilled or not (Jurado)
General rule: The debtor must perform the act as promised and cannot substitute the same with another act of forbearance. (Art. 1244, par.2)
Effects of breach:
In case the debtor breaches the obligation, the same shall be ordered undone at his expense. (Art.1168)
In those cases where it is not possible to undo the act done either physically or legally, or because the rights of third persons are involved, or for some
other reason, the only feasible remedy on the part of the creditor is an indemnification for the damage caused. (Art.1170)
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.
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. (1100a)
Fulfillment of the obligation: (how)
Performance of the obligation or payment, juridically speaking, presupposes the exact and complete execution of the prestation on the part of the
debtor. (Caguioa)
Traditionally, performance or fulfillment of the obligation has been expressed in the term “payment” or “solutio,” which expression has also the concept
of extinction of the juridical relation.
NOTE: The Civil Code regulates fulfillment or payment among the models of extinguishing obligations
Default or Mora (1st kind of voluntarily breaching obligation, a defect and partial non-fulfillment of obligation) (DEBTOR’S DEFAULT)
Principles:
1. covers all non-fulfillment in point of time in its broadest sense; juridically, however, it pertains only to culpable delay where fulfillment or compliance
with the obligation, although late, is still possible (Caguioa)
2. signifies the idea of delay in the fulfillment of an obligation with respect to time (Jurado)
3. delay in the fulfillment of obligations; it is non-fulfillment with respect to time (Tolentino)
Note: There can be delay ONLY in positive obligations (to do and to give); but there can be NO delay in negative obligations
Kinds of delay
Ordinary delay – This is the mere failure to perform an obligation at the stipulated ti me.
Extraordinary delay or legal delay – T his delay already equates to non-fulfillment of the obligation and arises after the extrajudicial or judicial demand has
been made upon the debtor (Pineda, 200 0).
Classification of Mora/Default:
Mora solvendi – delay on the part of the debtor
mora solvendi ex re - when demand by the creditor is not necessary to make the debtor in mora (Caguioa) (refers to obligations to give)
mora solvendi ex persona - if demand by the creditor is necessary in order to make the debtor in mora (Caguioa) (refers to obligations to do)
Mora accipiendi – delay on the part of the creditor to accept the delivery of the thing which is the object of the obligation (Jurado); generally, delay on the
part of the creditor
Compensatio morae – delay of the parties or obligors in reciprocal obligations; where mora of the creditor neutralizes the mora of the debtor (Caguioa)
3 requisites which should be present in order that the obligor or debtor may be considered in default (Jurado)
1. Obligation is demandable and already liquidated

2. Obligor or debtor delays performance
3. Creditor requires (demand) the performance judicially or extra-judicially
Mora solvendi
requisites: (Caguioa)
1. Obligation consists of a positive prestation (to do or to give)

2. Obligation should be demandable, due, determined or liquidated
3. Debtor delays in the performance due to causes imputable to him
4. Creditor should demand performance of the debtor
When does the obligor incur in delay?
The obligor or debtor incurs in delay from the time the obligee or creditor demands from him the fulfillment of the obligation;
the demand may be judicial or extrajudicial
judicial: if the creditor files a complaint against the debtor for the fulfillment of the obligation
extrajudicial: if the creditor demands from the debtor the fulfillment of the obligation either orally or in writing (Jurado); sending of a bill or
demand letter (Caguioa)
Notes:
A mere reminder or any act which cannot be qualified as a demand for payment will not be considered a demand since the code requires that the
tolerance and benevolence of the creditor has terminated (Castan as cited in Caguioa)
The proof of the demand will be incumbent upon the creditor (Tolentino)
Demand is generally necessary even if a periof has been fixed in the obligation (Tolentino)
Where there has been an extrajudicial demand before action for performance was filed, the effects of default arise from the date of such extrajudicial
demand. But where the evidence does not disclose any particular date on which the creditor made extrajudicial demand upon the debtor, the payment
of interest or damages for the default must commence from the filing of the complaint. (Tolentino)
The demand must refer to the prestation that is due and not to another (Tolentino)
When demand is NOT necessary
when the obligation or the law expressly so declares

the obligation or the law itself must expressly declare that the demand is not necessary in order that the debtor shall incur in delay
example: in the obligation it is stipulated that, “D shall incur in delay if he does not pay the obligation upon the arrival of the designated date for payment”.
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
basis: the time element for the fulfillment of the obligation is of the essence of the contract
examples:
(1) where a building was to be completed on a certain date because it was to be opened as a school on a fixed date;
(2) where goods were to be delivered on a specified date because they were to be loaded on a boat leaving on such date
when demand would be useless, as when the obligor has rendered it beyond his power to perform
where performance has become impossible either through
(1) some act or fault of the debtor or
(2) as that caused by fortuitous event but the debtor has bound himself to be liable in cases of such events.
*Note: 4th instance when demand is not necessary according to some authors (acknowledged by Tolentino):
when the debtor expressly recognizes or acknowledges that he has incurred in delay. There must, however, be an express recognition of the default
and not merely requests for extension to time to perform.
Effects of mora solvendi:
1. to indemnify the creditor for damages which his delay has occasioned in obligations to give and to do (Caguioa)
2. to answer for the loss or deterioration of the thing due even if caused by fortuitous event (Caguioa)
3. When it has for its object a determinate thing, the delay places the risks of the thing on the debtor (Tolentino)
Non-applicability of mora solvendi
Mora solvendidoes not apply in natural obligations because performance is optional or voluntary on the debtor’s part. One can never be late in not
giving or doing something.
MORA ACCIPIENDI
constitutes non-acceptance (on the part of the creditor) without reason (justifiable) (Caguioa)
delay in the performance based on the omission by the creditor of the necessary cooperation, especially acceptance on his part (Tolentino)
Requisites: (Caguioa)
1. That there exists an obligation which has already matured and for whose fulfillment an act of cooperation on the part of the creditor is required
2. That the debtor has performed al that is incumbent upon him under the obligation and made tender of payment to the creditor
3. That the creditor refused to accept payment or to cooperate in the fulfillment of the obligation without any justifiable reason
When does the creditor incur in delay?
The creditor incurs in delay when the debtor tenders payment or performance, but the creditor refuses to accept it without just cause.
Effects of mora accipiendi:
1. it excludes the mora of the debtor and destroys the effects of the latter (Caguioa)
2. it transfers the risk to the creditor for fortuitous events which formerly belonged to the debtor (Caguioa & Tolentino)
3. debtor can obtain his freedom from the obligation by the consignation of the thing due, and consequently, after consignation, his obligation to pay
interest is extinguished (Caguioa & Tolentino)
4. the responsibility of the debtor for the thing is reduced and limited to fraud and gross negligence (Tolentino)
5. all expenses incurred by the debtor for the preservation of the thing after the mora shall be chargeable to the creditor (Tolentino)
6. creditor becomes liable for damages (Tolentino)
COMPENSATIO MORAE
Reciprocal obligations –
those which are created or established at the same time, out of the same cause, and which result in mutual relationships of the creditor and debtor
between the parties.
are conditional in the sense that fulfillment of an obligation by one party depends upon the fulfillment of the obligation by the other
General rule in reciprocal obligations:
the fulfillment by the parties should be simultaneous. Where both are in default, their respective liability for damages shall be offset equitably.
When does delay or mora begin?
Delay or mora begins from the moment the other party fulfills or tenders fulfillment of his obligation in a proper manner (Caguioa)); otherwise put,
delinquency commences when one of the contracting parties fulfills his obligation and becomes invested with power to determine the contract because
of failure on the part of the other to carry out the agreement. (Tolentino)
How is demand made in reciprocal obligations?
Demand is made in only one way and that is by actual performance or tender of performance of the obligation of the party claiming delay or default by
the other. (Caguioa)
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. (1101)
enumerated herein are those kinds of voluntary breaches of obligation: (1) through fraud; (2) negligence; (3) delay; (4) contravention of the tenor
of the obligation.
General rule: in cases where there is voluntary breach of obligation, one of the rights of the creditor is to ask for indemnification of damages under this
article.
Notes:
“Damages” as used in the above provision include any and all damages that a human being may suffer in any and all manifestations of his life:
physical or material, moral or psychological, mental or spiritual, financial, economic, social, political and religious. (Tolentino)
Breach of contractual obligation entitles the other party damages even if no penalty for such breach is provided in the contract.
The responsibility for damages arising from non-fulfillment of a contractual obligation cannot be divided nor can it be extended to persons who have
nothing to do with the obligation (Tolentino)
Contravention of the tenor of obligation (also another kind of voluntary breach of obligation or partial non-fulfillment of obligation)
Any illicit act which impairs the strict and faithful fulfillment of the obligation or every kind of defective performance.
example: an architect who made plans that contain defects and inadequacies which led to the collapse of the building
2 kinds of Breach of Obligations: (Jurado)
Voluntary – if the debtor or obligor in the performance of his obligation is guilty of default, fraud, negligence, or in any manner contravenes the tenor thereof;
debtor is liable for damages
Voluntary breach through default or mora (Art.1169)

Voluntary breach through fraud or dolo (Art. 1171)
Voluntary breach through negligence or culpa (Art. 1172)
Voluntary breach through contravention of tenor of the agreement (Art. 1170)
Involuntary – if the non-fulfillment is brought about by circumstances foreign to the will of the debtor (Caguioa); otherwise put, if the debtor is unable to
comply with his obligation because of some fortuitous event; debtor is NOT liable for damages (Art. 1174)
Art. 1171. Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for future fraud is void. (1102a)
Fraud or Dolo
voluntary execution of a wrongful act, or a willful omission, knowing and intending the effects which naturally and necessarily arise from such act or
omission. (Tolentino)
consists in the conscious and intentional proposition to evade the normal fulfillment of the obligation (Jurado)
2 kinds of Fraud: deceit and malice
Distinctions:
Deceit (Fraud in the performance) Malice/Bad Faith (fraud in the performance)
Exists in the celebration of contracts/

Exists in the fulfillment of obligations
Exists ahead of the contractual obligation, or at the birth of
As to time
the obligation Present only during the performance of a pre-existing
obligation
Consent is free and not vitiated. there is no question of

Results in a vitiation of consent and a possible annulment of
annulment and the remedy granted by law is
the same
Consent/Result indemnification for damages
Securing the consent of the other party to enter into the

As to purpose Evading the normal fulfillment of an obligation
contract
Gives rise to a right of the innocent party to ask for the

Gives rise to a right of the creditor or obligee to recover
As to rights that arise annulment of the contract if the fraud is causal or to recover
damages from the debtor or obligor
damages if it is incidental
What type of fraud is contemplated under Art.1171?
The fraud referred to in this article is malice or bad faith.
Malice or bad faith
any voluntary and willful act or omission which prevents the normal realization of the prestation, knowing and intending the effects which naturally and
necessarily arise from such act. (Tolentino)
Manresa: deliberate and intentional purpose to evade the normal compliance of an obligation (as cited in Caguioa)
Responsibility for malice or bad faith:
For the consequences of his malicious act, the debtor is liable not only for the results intended but also for their natural and probable consequences
even though they haven’t been foreseen by the debtor or they exceeded its intention
This responsibility for malice or bad faith is demandable in all kinds of obligations but it is necessary that it must be proved and not simply presumed
and results in an aggravation of the damages that are recoverable
Waiver of action for malice or bad faith:
if in advance, e. a waiver for a fraud which has not yet been committed à void; prohibited because it is against law and public policy
if past, i.e. a waiver for a fraud already committed à valid; is deemed an act of generosity on the part of the creditor
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. (1103)
Culpa or fault or negligence
1. 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 (Art. 1173)
2. omission of that diligence required in social relations which if observed would have prevented the contrary and undesired result (Caguioa)
3. simply the absence of due care required by the nature of the obligation (Jurado)
Kinds/classes:
According to form
Culpa in faciendo (positive act)
Culpa in non faciendo (omission)
According to degree of culpa / diligence
Culpa lata (grave which is the omission of the most minimum diligence)
Culpa leve (omission of the diligence of an ordinary layman or bonus pater familias)
Culpa levissima (omission of the maximum diligence of a very careful man)
Culpa contractual (Most important classification)
fault or negligence in the performance of a pre-existing contractual obligation resulting in a breach of obligation (Caguioa & Tolentino)
fault or negligence of the obligor by virtue of which he is unable to perform his obligation arising from a pre-existing contract because of the omission
of the 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
(Jurado
Culpa extra-contractual or aquiliana
failure to observe the care required by law with respect to other persons not connected by contract or of any juridical relation whatsoever save the
generic one which is common to all men of not damaging another (Caguioa)
fault or negligence of a person, who, because of the omission of the diligence which is required by the nature of the obligation and which must
correspond with the circumstances of the persons, of the time and of the place, causes damage to another. (Jurado)
fault or negligence which constitutes an independent source of obligation between parties not previously bound. (Tolentino)
Distinctions:
CULPA CONTRACTUAL CULPA AQUILIANA
There is pre-existing contractual relation None.
The negligence involved is substantive and independent.

The negligence of the defendant is merely an incident in the performance of an obligation
Source of liability—breach or non-fulfillment of the contract Source of liability—negligent act or omission itself
Plaintiff must prove the existence of negligence

There is presumption of negligence from the breach of the contract
The master is free from liability upon proof of such diligence

The master cannot exempt himself by proving due diligence in the selection and
supervision of employee
Damages may be claimed only by the parties, their heirs and privies A stranger may claim damages such as the relatives and dependents
Negligence referred to in Art.1173 Negligence referred to in Art. 217
Fraud Negligence
There is malice or dolo when there is non-fulfillment due to a cause of which the debtor is There is culpa when there is non-fulfillment due to a cause which the debtor could or ought
aware; to have foreseen;
there is actual knowledge there is possibility of knowledge
Liability cannot be mitigated. Liability may be mitigated
Distinguishing element: INTENTION

mere abandonment, inattention, carelessness, lack of diligence
presence of intent to cause damage or injury
The guilty party is responsible for all the consequences attributable to his act whether The guilty party only answers for the damages which are foreseen or could have been
intended or not or foreseen or not foreseen at the time the obligation was constituted
Waiver in advance is not allowed Allowable (waiver) unless contrary to public policy
Responsibility for fault or negligence:
If the debtor or obligor is unable to comply with his obligation because of his fault or negligence, the creditor or obligee can hold him liable for damages.
The liability arising from negligence in the performance of every kind of obligation may be regulated by the courts. The court may increase or decrease
the liability of the party at fault depending upon the circumstances of each case.
Exemptions from liability:
in which a party to a contract is relieved from the effects of his fault or negligence by a third person
in which one party to a contract renounces in advance the right to enforce liability arising from the fault or negligence of the other.
Notes:
Test of negligence: If the defendant in doing the alleged negligent act DID NOT use the reasonable care and caution which an ordinarily prudent person
would have used in the same situation, he is guilty of negligence.
Waiver of action for negligence:
Future negligence - can be waived, unless the nature of the obligation and public policy should require extraordinary diligence; or if the negligence is so
gross that it amounts to malice or bad faith
Past negligence - all the more valid
Effect of good/bad faith
If the obligor has acted in good faith, he shall be liable only for natural and probable consequences of the breach of the obligation and which the parties
have foreseen or could have reasonably foreseen at the time the obligation was constituted.
If the negligence of the obligor shows bad faith, provisions of Arts. 1171 and 2201, par.2[1] shall apply. It is in this case that the boundary line, at least
with regard to effects, between negligence and fraud disappears altogether; otherwise put, when negligence shows bad faith the rules on fraud or dolo
shall govern.
Effect of contributory negligence:
If there was contributory negligence of the obligee or creditor, the effect is to reduce or mitigate the damages which he can recover from the obligor or
debtor as a result of the breach of the obligation. BUT, if the negligent act or omission of the obligee or creditor was a proximate cause of the event
which led to the damage or injury complained of, he cannot recover. (Jurado)
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. (1104a)
General degree of diligence required:
When neither the law nor the obligation itself states the degree of diligence required of the obligor or debtor in the performance or fulfillment of the
obligation, the standard diligence required is “that which would be observed by a good father of a family”.
Exceptions:
when the parties stipulated another degree of diligence required

when the law requires a higher degree of diligence
example: common carriers (Art.1733, par.1)
GOOD FATHER OF A FAMILY (bonos paterfamilias)
a person of ordinary or average diligence
3 quantum of diligence:
extraordinary diligence
diligence of a good father of a family (DOAGFOAF)
A general degree of diligence expected of an owner of a property
simple diligence
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. (1105a)
Fortuitous Event
an event which could not be foreseen, or which, though foreseen, was inevitable.
includes unavoidable accidents, even if there has been an intervention of human element, provided fault or negligence cannot be imputed to the
debtor. (Tolentino)
Negative Definition: that incident not imputable to the debtor which impedes the exact fulfillment of the obligation. (Caguioa)
Positive Definition: event not imputable to the debtor which is unforeseen or although foreseen is inevitable and which renders impossible to exact
fulfillment of the obligation (Caguioa)
DISTINCTIONS:
fortuitous event proper force majeure/act of man
or that which is caused by an “act of God” where there is human intervention
examples: earthquakes, floods, storms, epidemics, fires, etc. examples: armed invasion, attack by robbers, attack by bandits
*Note: Essentially, there is NO substantial difference between the two, they both refer to an event or cause which is independent of the will of the obligor.
As to foreseeability:
ordinary fortuitous event - refers to an event which usually happens or which could have
been reasonably foreseen extraordinary fortuitous event - refers to an event which does not usually happen and which
could not have been reasonably foreseen
example: tropical storms, floods

examples: fire, war, pestilence, unusual flood (Ondoy), locust, earthquake
CHARACTERISTICS/REQUISITES:
1. the cause of the unforeseen and unexpected occurrence, or the failure of the debtor to comply with his obligations, must be independent of the human
will
2. it must be impossible to foresee the event which constitute the caso fortuito, or if it can be foreseen, it must be impossible to avoid
3. possibility of foreseeing the event – should be appreciated rationally according to the circumstances
4. inevitableness of the event – varies according to the case and circumstances and must have a relation with the means of the debtor and therefore with
the degree of diligence he should have exercised.
5. the occurrence must be such as to render it impossible for the debtor to fulfill his obligation in a normal manner
6. the obligor must be free from any participation in the aggravation of the injury resulting to the creditor
Effects of fortuitous event on liability:
General rule: The effect of fortuitous event is to exempt the debtor from liability for the non-fulfillment of the obligation and to the payment of damages
to the creditor. His obligation is extinguished.
Exceptions:
The law expressly so provides (as in the case of aleatory contracts)
example: Arts. 552, par.2
The parties expressly so stipulated
The nature of the obligation requires the assumption of risk as in the case of insurance contracts
Assumption of risk
– refers to a situation in which the obligor or debtor, with full knowledge of the risk voluntarily enters into some relation with the obligee or creditor
- ordinarily requires knowledge and the appreciation of the risk and the voluntary choice to encounter it.
- doctrinal basis: no wrong is done to one who consents (volenti non fit injuria)
- based on social justice; it is based on an ethico-economic sensibility of modern society, which has noted the injustices which industrial civilization
has created
NOTE:
The debtor is guilty of dolo, malice or bad faith as when he promises to deliver the same thing to two or more persons who do not have the same
interest (Art. 1165, par.3)
The debtor is already in mora at the time the fortuitous event happens
The liability arises from a criminal act unless the loss occurs after the debtor tendered the thing to the creditor and the creditor refused to accept the
same without justifiable cause. (Art. 1268)
In order that a fortuitous event may exempt a person from liability, it is necessary that he be free from any previous negligence or misconduct by reason
of which the loss may have been occasioned. (Southeastern College Inc. vs. CA); otherwise put, the fortuitous event must not only be the proximate
cause of the loss or destruction, but that it must be the SOLE cause.
Art. 1175. Usurious transactions shall be governed by special laws. (n)
Usury à contracting for or receiving something in excess of the amount allowed by law for the loan or forbearance of money, goods or chattels; the
taking of more interest for the use of money, goods or chattels or credit than the law allows.
The special laws referred to are the Usury Law (Act. No. 2655) and the different laws amending it. Usury Law provided for a legal rate interest of 6%
per annum and a contractual rate not exceeding 12% per annum if the loan is secured by a duly registered real estate, and 14% if not so secured.
Usury Law was repealed during the martial law period, leaving parties free to stipulate higher rates.
There is now no longer any ceiling in interest rates on loans pursuant to Central Bank Circular No. 224 issued last Dec.1, 1982.
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 reservation as to prior installments, shall likewise raise the presumption that such installments have
been paid. (1110a)
The presumptions enunciated in the above provision are rebuttable and not conclusive
2 presumptions stipulated by Art.1176:
Par. 1 à If the debtor is issued a receipt by the creditor and on the face of the receipt it is shown that the principal has been paid without any
reservation with respect to the interest, there arises a disputable presumption that the interest has also been paid.
Basis: If a debt produces interest, payment of the principal shall not be deemed to have been made until the interests have been covered. (Art.
1253)
Par. 2 à If the debtor is issued a receipt by the creditor acknowledging payment of a latter installment of a specified debt without any reservation with
respect to prior installments, there also arises a disputable presumption that such prior installments have already been paid. (This rule is in conformity
with the rule stated in Rule 131, Sec.5, subsec. (i) of the New Rules of Court.)
Estoppel (Art. 1431, Civil Code) – a condition or state by virtue of which an admission or representation is rendered conclusive upon the person making it
and cannot be denied or disproved as against the person relying thereon.
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)
2 distinct aspects/elements of an obligation: (Caguioa)
Debtor
Guaranty/responsibility
duty of the debtor to answer for his obligation with his entire patrimony
Rights of creditors in satisfying their claims against the debtor:
to levy by attachment and execution upon all the property of the debtor, except such as are exempt by law from execution
exhausting the property in possession of the debtor
For the fulfillment of the obligation of the debtor responds with all his property present and future.
All the property of the debtor is answerable for the obligation not only those properties existing at the time of birth of the obligation but also
all those which later on become or form part of the patrimony of the debtor.
in conformity with Art. 2236 of the Civil Code which states that the debtor is liable with all his property, present and future for the fulfillment
of his obligations subject to the exemptions provided by law.
to exercise all the rights and actions of the debtor, except such as are inherently personal to him
creditor being subrogated to all of the rights and actions of the debtor save those which are inherent in his person
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. (1112)
General rule: Rights of obligations or those rights which are acquired by virtue of an obligation are as a general rule transmissible in character – they
may be alienated or assigned to third persons.
Exceptions:
where they are not transmissible by their very nature (personal right)
where there is a stipulation of the parties that they are not transmissible
where they are not transmissible by operation of law
Note: Intransmissibility by stipulation of the parties, being exceptional and contrary to the general rule, should not be easily implied, but must be clearly
established, or at the very least, clearly inferable from the provisions of the contract itself. (Jurado)
*** END of LESSON ***
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Week 5: Kinds of Obligations (part 1)

KINDS OF CIVIL OBLIGATIONS
PURE AND CONDITIONAL OBLIGATIONS
Pure Obligation
An obligation whose performance does not depend upon a future or uncertain event, or upon a past event or upon a past event unknown to the parties,
demandable at once (NCC, Art. 1179). One without a condition or a term (hence, demandable at once), provided there will be no absurdity.
Examples:
1. I promise to pay you P 1million. [this is demandable at once, unless a period was really intended, as when a loan has just been contracted(Floriano v.
Delgado, 11 Phi.. 154), when some time is reasonably necessary for the actual fulfillment of the obligation, as when a person binds himself to pay
immediately for the subscription of corporate shares of stock. (Paul Schenker vs. William F. Gemperle, L-16449, August 31, 1962)
2. “I‟ll pay you P1million on demand.” (Abarri Inc vs Galan, 47 O.B. 6241) but instant performance is not a necessity, otherwise absurd consequences will
NOTE: Other obligations which are demandable at once are:
1. Obligations with a resolutory condition; and

2. Obligations with a resolutory term or period [NCC, Arts. 1179 (2) and 1193 (2)].
The most distinctive characteristic of a pure obligation is its immediate demandability. This quality, however, must not be understood in such a way as to lead to
absurd interpretations which would literally require the obligor or debtor to comply immediately with his obligation. A distinction must be made between:
1. The immediate demandability of the obligation; and

2. Its performance or fulfillment by the obligor or debtor. Although the obligee or creditor can demand the performance of the obligation immediately, the
quality of immediate demandability is not infringed or violated when a reasonable period is granted for performance (Jurado, 2009).
Conditional Obligation
An obligation subject to a condition and the effectivity of which is subordinated to the fulfillment or non-fulfillment of a future and uncertain event, or upon a past
event unknown to the parties (Pineda,2000).
Condition
A condition is an event which is future and uncertain, upon which the efficacy or extinguishment of an obligation depends. It has two requisites: first, futurity; and second,
uncertainty.
Period v Condition
BASIS PERIOD CONDITION
May refer to past event unknown to the parties

As to time Refers to the future
It will happen at an exact date or at an indefinite

time, but is definite to arrive
As to fulfillment May or may not happen
Futurity and uncertainty

Characteristic Futurity and certainty
May give rise to an obligation (suspensive) or

The effect of its happening to the No effect upon the existence of the obligation but the cessation of one already existing
obligation only in its demandability (resolutory)
If fulfillment is dependent upon the Valid. But the court is empowered to fix the
sole will of the debtor duration of the period.
Annulled.
The moment the condition is fulfilled, the effects

will retroact on the day of
the constitution of the obligation.
Retroactivity No retroactivity.
Suspensive Condition
A condition the fulfillment of which will give rise to the acquisition of a right. While the condition has not arrived yet, in the meantime, the rights and obligations of
the parties are suspended.
NOTE: In suspensive condition or condition precedent, the efficacy or the obligatory force is subordinated to the happening of a “future and uncertain event”; if the
suspensive condition does not take place the parties would stand as if the conditional obligation never existed (Gaite v. Fonacier, GR L-11827, July 31, 1961;
Cheng v. Genato, 300 SCRA 722, GR 129760, December 29, 1998; Pineda, 2000).
Effect of loss, deterioration and improvement in an obligation to deliver a determinate thing subject to a suspensive condition
BASIS WITH DEBTOR’S FAULT WITHOUT DEBTOR’S FAULT
Obligation is not extinguished.

Debtor pays damages. Obligation is extinguished.
Loss
Creditor may choose between rescission of obligation or

fulfillment (with indemnity for damages in either case) Impairment borne by creditor.
Deterioration
a.By the thing‟s nature or through time – inure to the benefit of the creditor
Improvement b.At the debtor‟s hand - Debtor shall have no right other that granted to a usufructuary
NOTE: The abovementioned do not apply to indeterminate or generic things on the basis of the maxim “genus nun quam peruit” (genus never perishes). It will
only apply when the object or thing to be given is specific.
Positive Suspensive Condition
A condition which requires a positive act on the part of the obligor that gives rise to the acquisition of rights
In case of a contract to sell, the obligation to deliver the subject properties becomes demandable only upon the happening of the positive suspensive condition
(payment of full purchase price). Without full payment, there can be no breach of contract to speak of because the seller has no obligation yet to turn over the title
(Reyes v. Tuparan, G.R. No. 188064, June 1, 2011).
Resolutory Condition
A condition where the rights already acquired are lost upon fulfillment of the condition. It is also known as condition subsequent.
Suspensive Condition vs. Resolutory Condition
BASIS SUSPENSIVE CONDITION RESOLUTORY CONDITION
Effect of Obligation arises or becomes

Obligation is extinguished.
fulfillment effective.
Effect of non- If not fulfilled, no juridical If not fulfilled, juridical relation is

fulfillment relation is created. consolidated.
When rights are Rights are not yet acquired, but Rights are already vested, but subject
acquired there is hope or expectancy that to the threat or danger of extinction.
they will soon be acquired.
Negative Resolutory Condition
An act, which if not done, would give rise to a cause of action against the obligor. It contemplates a situation where rights are already acquired but subject to an
obligation, the non- fulfillment of which does not affect the rights already acquired but merely gives a cause of action in favor of the other party. In a contract of
sale, the buyer‟s non-payment of the price is a negative resolutory condition. In such case, the seller has lost and cannot recover the ownership of the property
unless he takes action to set aside the contract of sale (Heirs of Atienza v. Espidol, G.R. No. 180665, August 1, 2010).
Potestative Condtion
A condition which depends upon the will of one of the contracting parties (NCC, Art. 1182).
Effects of potestative conditions upon the obligation
If the condition is potestative in the sense that its fulfillment depends exclusively upon the will of the debtor, and the same is suspensive, both the
condition and obligation are VOID.
However, if the condition is a pre-existing one or the condition is resolutory, only the condition is void, leaving the obligation itself valid because what is left to the
sole will of the debtor is not the existence or the fulfillment of the obligation but merely its extinguishment.
If the condition is potestative in the sense that its fulfillment depends exclusively upon the will of the creditor, the obligation shall be valid. This is so because the
provision of the first sentence of Art. 1182 extends only to conditions which are potestative to the obligor or debtor. Besides, the creditor is naturally interested in
the fulfillment of the condition since it is only by such fulfillment that the obligation arises or becomes effective (Jurado, 2009 citing NCC, Art. 1181 and Manresa).
Casual Condition
It is the performance or the fulfillment of the condition which depends upon chance and/or the will of a third person.
Mixed Condition
It is the performance or fulfillment of the condition which depends partly upon the will of a party to the obligation and partly upon chance and or the will of a third
person.
NOTE: Casual and mixed conditions are valid, unlike purely potestative conditions.
Impossible Conditions
General Rule: Impossible conditions annul the obligation which depends upon the parties but not of a third person.
Exceptions:
1. Pre-existing obligation;
2. Obligation is divisible;
3. In simple or remuneratory donations;
4. In case of conditions not to do an impossible thing; and
5. In testamentary
NOTE: In the foregoing, the obligations remain valid, only the condition is void and deemed to have not been imposed. it is applicable only to
obligations not to do and gratuitous obligations.
Other types of conditions
1. Positive – It involves the doing of an act;

2. Negative –Itinvolves the omission of an act;
3. Divisible – Itis susceptible of partial performance;
4. Indivisible – It is not susceptible of partial performance;
5. Conjunctive – There are several conditions in an obligation all of which must be performed;
6. Alternative – There are several conditions in an obligation but only one must be performed;
7. Possible – Itis capable of fulfillment according to the nature, law, public policy or good customs; and
8. Impossible – It is not capable of fulfillment according to nature, law, public policy or good customs (NCC, Art. 1183).
OBLIGATIONS WITH A PERIOD
Obligation with a period or a term
Obligations for whose fulfillment a day certain has been fixed, shall be demandable only when that day comes (NCC, Art.1193).
Term or period
A certain length of time which determines the effectivity or the extinguishment of the obligations.
Requisites of a valid period or term
1. Future;
2. Certain; and
3. Possible, legally and physically (Paras, 2008).
“Day certain”
It is understood to be that which must necessarily come, although it may not be known when.
Kinds of terms or periods
1. Ex die – This is a term or period with suspensive effect. The obligation begins only from a day certain, in other words upon the arrival of the
2. In diem – A period or term with a resolutory effect. Up to a certain extent, the obligation remains valid, but upon the arrival of said period, the obligation
3. Legal – A period granted under the provisions of the
4. Conventional or voluntary – The period agreed upon or stipulated by the
5. Judicial – The period or term fixed by the courts for the performance of an obligation or for its
6. Definite – The exact date or time is known and
7. Indefinite – It is something that will surely happen but the date of happening is
e.g. “I will pay when my means permit me to do so.” When the debtor
When the debtor binds himself to pay when his means permit him to do so, the obligation is deemed with a period (NCC, Art. 1180). This is valid because it
is not the payment itself that is dependent upon the will of the debtor, but the moment of payment.
As the time of payment is not fixed, the court must fix the same before any action for collection may be entertained, unless, the prior action of fixing the term or
period will only be a formality and will serve no purpose but delay (Tiglao v. Manila RailroadCo., 98 Phil. 181, GR. L-7900, January 12, 1956).
Effect of a fortuitous event to an obligation with a period
It only relieves the contracting parties from the fulfillment of their respective obligation during the term or period.
ALTERNATIVE OBLIGATIONS
Alternative obligation
It is one where the debtor is alternatively bound by different prestations but the complete performance of one of them is sufficient to extinguish the obligation.
Facultative obligation
It is one where the debtor, who has a reserved right to choose another prestation or thing, is bound to perform one of the several prestations due or to deliver
a thing as substitute for the principal.
Conjunctive obligation
One where the debtor has to perform several prestations; it is extinguished only by the performance of all of them.
BASIS FACULTATIVE OBLIGATIONS ALTERNATIVE OBLIGATIONS
Number of
prestation Only one object is due. Several objects are due.
Manner of May be complied with by substitution of one that is May be complied with by fulfilling any of those
compliance
due. alternately due.
Choice pertains only to debtor. GR: Choice pertain to debtor.
Right to choose
XPN: Expressly granted to creditor or third

person.
Effect of fortuitous
Fortuitous loss of all prestations will extinguish the
loss Fortuitous loss extinguishes the obligation.
obligation.
Effect of culpable Culpable loss obliges the debtor to deliver Culpable loss of any object due will give rise to
loss substitute prestation without liability to debtor. liability to debtor.
The creditor shall have the right of indemnity for

When substitution has been made and
damages when, through the fault of the debtor, all
communicated to the creditor, the obligor is liable for
the things which are alternatively the object of the
Liability of the the loss of the thing on account of delay, negligence
obligation have been lost or the compliance of the
debtor or fraud.
obligation has become impossible.
If principal obligation is void, the creditor cannot If one prestation is void, the others that are free
Void prestation
compel delivery of the substitute. from any vices of consent preserve the validity of
the obligation.
If some prestations are impossible to perform

except one - this one must be delivered.
If there is impossibility to deliver the principal thing
or prestation, the obligation is extinguished, even if
Impossibility the substitute obligation is valid. If all prestations are impossible to perform, the
of prestation obligation is
extinguished.
Loss of the substitute before the substitution is Where the choice is given to the creditor, the loss
Loss of substitute made through the fault of the debtor doesn‟t make of the alternative through the fault of the debtor
him liable. renders him liable for damages.
Right to choose prestation in an alternative obligation
General Rule: The right of choice belongs to the debtor
Exception: Unless it has been expressly given to the creditor (NCC, Art. 1200).
Limitations on debtor’s right to choose
1. The debtor must absolutely perform the prestation chosen. He cannot compel the creditor to receive part of one and part of the other undertaking;
2. The debtor shall have no right to choose those prestation which are impossible, unlawful or which could not have been the object of the obligation
(NCC, Art. 1200);
3. The debtor shall lose the right to choice when among the prestation whereby he is alternatively bound, only one is practicable (NCC, Art. 1202);
4. The selection made by the debtor (or the creditor when it has been expressly granted to him) cannot be subjected by him to a condition or a term
unless the creditor (or debtor in case the choice is with the creditor) consents thereto (Tolentino, 2002).
Effectivity of the choice in alternative obligations
The choice made takes effect only upon communication of the choice to the other party and from such time the obligation ceases to be alternative (NCC, Art. 1201; NCC,
Art. 1205).
NOTE: The notice of selection or choice may be in any form provided it is sufficient to make the other party know that the election has been made
(Tolentino,2002).
When alternative obligation becomes a simple obligation
1. When the debtor has communicated the choice to the creditor;

2. When debtor loses the right of choice among the prestations whereby the debtor is alternatively bound, only one is practicable (NCC, Art. 1202).
NOTE: The choice made by the debtor does not require the concurrence of the creditor. Otherwise, it would destroy the very nature of the right to select given to
the debtor.
Impossibility of choice due to creditor’s acts
When choice is rendered impossible through the creditor‟s fault, the debtor may bring an action to rescind the contract with damages (NCC, Art. 1203).
Plurality of parties
When there are various debtors or creditors and the obligation is joint, the consent of all is necessary to make the selection effective, because none of them
can extinguish the entire obligation.
If the obligation is solidary and there is no stipulation to the contrary, the choice by one will binding personally upon him, but not as to the others. Thus, if A and B
solidarily bind themselves to deliver a horse or a carabao to C, the selection of A of the horse, when communicated to C will bind him and he cannot later on
deliver the carabao. But it is not binding on B who may extinguish the obligation by delivering the carabao (Tolentino, 2002).
Effect of loss of objects in alternative obligations
Due to fortuitous event Due to debtor’s fault
Choice belongs to Debtor
Creditor shall have a right to be indemnified for

damages based on the value of the last thing
which disappeared or last
All are lost Debtor released from the obligation.
service which became

impossible.
Debtor shall deliver that which he shall choose

Debtor shall deliver that which he shall from among the remainder without
Some but not choose from among the remainder.
all are lost damages
Only one
Deliver that which remains.
remains
Choice belongs to Creditor

Creditor may claim the price or value of any of
them with indemnity
All are lost Debtor released from the obligation for damages.
Creditors mat claim any of those subsisting OR

he may choose any of those were lost, but it is
Creditor may choose from among the the price or value of which right to damages
remainder or that which remains if only that can be
Some but not one subsist. claimed.
all are lost
Only Deliver that which remains. In case of fault of debtor, creditor has a right to indemnify for
one damages.
remains
*** END of LESSON ***
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Week 6: Kinds of Obligations (part 2)

KINDS OF CIVIL OBLIGATIONS
JOINT AND SOLIDARY OBLIGATIONS
Joint Obligation
One where the credit or debt shall be presumed to be divided into as many equal shares as there are creditors or debtors, the credit or debts being considered
distinct from one another (NCC, Art. 1208). Each debtor is liable only for a proportionate part of the debt and each creditor to his proportionate share to the credit.
Other terms for joint obligations are:
1. joint simply;
2. man communada; or
3. pro rata
Solidary Obligations
It is where each of the debtors obliges to pay the entire obligation while each one of the creditors has the right to demand from any of the debtors, the payment or
fulfillment of the entire obligation (NCC, Art. 1207; Pineda, 2000).
Other terms for solidary obligations are:
1. Joint solidarily;
2. Jointly and severally; or
3. In solidum
Joint Obligation vs. Solidary Obligation
SOLIDARY OBLIGATION
JOINT OBLIGATION
Not presumed. Must be expressly stipulated by the

Presumption by law Presumed by law. (NCC, Art. parties, or when the law or the nature of the obligation
1208). requires solidarity (NCC, Art. 1207).
Proportionate part of the entire

Liability of each debtor Obliged to pay the entire obligation.
debt.
Each creditor, if there are several, is Each creditor has the right to demand from any of the
Right of the creditor to the
entitled only to a proportionate part debtors, the payment or fulfillment of the entire obligation
fulfillment of the obligation
of the credit.
(Tolentino, 1999).
GENERAL RULE : When two or more creditors or two or more debtors concur in one and the same obligation, the presumption is that the obligation is joint.
EXCEPTIONS: The obligation shall only be solidary when:
1. Law requires solidarity;

2. Expressly stipulated that there is solidarity;
3. Nature of the obligation requires solidarity; (e.g. Civil liability arising from crime.)
4. Charge or condition is imposed upon heirs or legatees and the will expressly makes the charge or condition in solidum (Manresa); or
5. Solidary responsibility is imputed by a final Judgment upon several defendants (Gutierrez v.utierrez, 56 Phil 177, GR 34840, September 31, 1931).
JOINT INDIVISIBLE OBLIGATIONS
The obligation is joint because the parties are merely proportionately liable. It is indivisible because the object or subject matter is not physically divisible into different
parts. In other words, it is joint as to liabilities of the debtors or rights of the creditors but indivisible as to compliance (De Leon, 2010).
A joint indivisible obligation gives rise to indemnity for damages from the time anyone of the debtors does not comply with his undertaking. The debtors who may
have been ready to fulfill their promises shall not contribute to the indemnity beyond the corresponding portion of the price of the thing or of the value of the service in
which the obligation consists (NCC, Art. 1224).
Effects of different permutations of joint indivisible obligations
1. If there are two or more debtors, compliance with the obligation requires the concurrence of all the debtors, although each for his own share. The
obligation can be enforced only by preceding against all of the debtors;
2. If there are two or more creditors, the concurrence or collective act of all the creditors, although each of his own share, is also necessary for the
enforcement of the obligation;
3. Each credit is distinct from one another; therefore a joint debtor cannot be required to pay for the share of another with debtor, although he may pay if
he wants
In case of insolvency of one of the debtors, the others shall not be liable for his shares. To hold otherwise would destroy the joint character of the
obligation (NCC, Art. 1209).
Effect of breach of a joint indivisible obligation by debtor
If one of the joint debtors fails to comply with his undertaking, and the obligation can no longer be fulfilled or performed, it will then be converted into one of indemnity
for damages. Innocent joint debtor shall not contribute to the indemnity beyond his corresponding share of the obligation.
SOLIDARY OBLIGATIONS
Each one of the debtors is obliged to pay the entire obligation, and each one of the creditors has the right to demand from any of the debtors the payment or
fulfillment of the entire obligation.
Kinds of solidary obligation
1. Passive – Solidarity on the part of the debtors;

2. Active –Solidarity on the part of the creditors ;
3. Mixed –Solidarity on both
Active solidarity
The essence of active solidarity consists in the authority of each creditor to claim and enforce the rights of all, with the resulting obligation of paying every one
what belongs to him; there is no merger, much less a renunciation of rights, but only mutual representation. It is thus essentially a mutual agency. Its juridical
effects may be summarized as follows:
1. Since it is a reciprocal agency, the death of a solidary creditor does not transmit the solidarity to each of his heirs but to all of them taken together;
2. Each creditor represents the others in the act of receiving payment, and in all other acts which tend to secure the credit or make it more advantageous.
Hence, if he receives only a partial payment, he must divide it among the other creditors. He can interrupt the period of prescription or render the
debtor in default, for the benefit of all other creditors;
3. One creditor, however, does not represent the others in such acts as novation (even if the credit becomes more advantageous), compensation and
remission. In these cases, even if the debtor is released, the other creditors can still enforce their rights against the creditor who made the novation,
compensation or remission;
4. The creditor and its benefits are divided equally among the creditors, unless there is an agreement among them to divide differently. Hence, once the
credit is collected, an accounting and a distribution of the amount collected should follow;
5. The debtor may pay to any solidary creditor, but if a judicial demand is made on him, he must pay only to the plaintiff; and
6. Each creditor may renounce his right even against the will of the debtor, and the latter need not thereafter pay the obligation to the
Passive solidarity
In passive solidarity, the essence is that each debtor can be made to answer for the others, with the right on the part of the debtor-payor to recover from the others
their respective shares. In so far as the payment is concerned, this kind of solidarity is similar to a mutual guaranty. Its effects are as follows:
1. Each debtor can be required to pay the entire obligation; but after the payment, he can recover from the co-debtors their respective shares;
2. The debtor who is required to pay may set up by way of compensation his own claim against the creditor, in this case, the effect is the same as that of
payment;
3. The total remission of a debt in favor of a debtor releases all the debtors ; but when this remission affects only the share of one debtor, the other
debtors are still liable for the balance of the obligation;
4. All the debtors are liable for the loss of the thing due, even if such loss is caused by only one of them, or by fortuitous event after one of the debtors
has incurred in delay;
5. The interruption of prescription as to one debtor affects all the others; but the renunciation by one debtor of the prescription already had does not
prejudice the others, because the extinguishment of the obligation by prescription extinguishes also the mutual representation among the solidary
debtors; and
6. The interest due by reason of the delay by one of the debtors are borne by all of them.
NOTE: Example of words that connote solidary obligation: a) joint and several; b) in solidum; c)individually and collectively; d) each will pay the whole value; e) “I
promise to pay” and there are two or more signatures; and f) juntos o separada mente
Solidarity v. Indivisibility
BASIS SOLIDARITY INDIVISIBILITY
Refers to the vinculum existing between the

As to the kind of unity it subjects or parties Refers to the prestation or object of the
refers to contract
As to the requirement of
plurality of parties or subjects Does not require plurality of subjects or
Requires the plurality of parties or subjects
parties.
In case of breach, it is converted to one of

In case of breach, the liability of the solidary indemnity for damages and the indivisibility of
debtors although converted into one of the the obligation is terminated and
indemnity for damages remains solidary so each debtor is liable only for his part of the
As to the effect of breach indemnity
Death of solidary debtor terminates the

solidarity, the ties or vinculum being
As to the effect of death of a intransmissible to the Heirs of the debtor remain bound to perform
party heirs the same prestation.
DIVISIBLE AND INDIVISBLE OBLIGATIONS
Divisible obligations
Those which have as their object a prestation which is susceptible of partial performance with the essence of the obligation being change
Indivisible obligations
Those which have as their object a prestation which is not susceptible of partial performance, because otherwise the essence of the obligation will be changed. The
obligation is clearly indivisible because the performance of the contract cannot be done in parts, otherwise, the value of what is transferred is diminished (Nazareno
v. CA, G.R. No. 138842, October 18, 2000).
NOTE: The divisibility of the object does not necessarily determine the divisibility of the obligation; while the indivisibility of the object carries with it the indivisibility
of the obligation.
Test of divisibility
Whether or not the prestation is susceptible of partial performance, not in the sense of performance in separate or divided parts, but in the sense of the possibility of
realizing the purpose which the obligation seeks to obtain. If a thing could be divided into parts and as divided, its value is impaired disproportionately, that thing is
indivisible (Pineda, 2000).
Obligations that are deemed indivisible
1. Obligations to give definite things;

2. Those which are not susceptible of partial performance;
3. Even the object or service may be physically divisible, an obligation is indivisible if so provided (i) by law or (i) intended by the parties (NCC, Art. 1225).
NOTE: A pledge or mortgage is one and indivisible by provision of law, and the rules apply even if the obligation is joint and not solidary (NCC, Art. 2089).
Obligations that are deemed divisible
When the object of the obligation involves:
1. Certain number of days of work;
2. Accomplishment of work by metrical unit;
3. Analogous things which are by their nature susceptible of partial performance (NCC, Art.1225).
Factors to determine whether an obligation is divisible of indivisible
1. The will or intention of the parties (express or implied);

2. The objective or purpose of the stipulated prestation;
3. The nature of the thing; and
4. The provisions of law affecting the
OBLIGTIONS TO GIVE OBLIGATIONS TO DO
In obligations to do, invisibility is also presumed, and it is only when ther are under
In obligations to give, those for the delivery of certain objects such as an animal or
the exceptional cases mentioned in New Civil Code (NCC), Art 1225 (2) that they
a chair are invisible [(NCC, 1225 (1)]
are divisible.
Effect of Illegality of a part of a contract
1. Divisible contract – The illegal part is void and unenforceable. Legal part is valid and enforceable (NCC, Art. 1420).
2. Indivisible contract – The entire contract is indivisible and Partial in indivisible obligation
GENERAL RULE : In indivisible obligations, partial performance is equivalent to non-performance.
EXCEPTIONS:(NCC, Articles 1234 and 1235).
1. Where the obligation has been substantially performed in good faith, the debtor may recover as if there had been complete performance, minus the
damages suffered by the creditor; and
2. Where the creditor accepts performance knowing its incompleteness and without protest, the obligation is deemed fully
OBLIGATIONS WITH A PENAL CLAUSE
An obligation with a penal clause is one with an accessory undertaking by virtue of which the obligor assumes a greater liability in case of breach of the obligations
(Jurado, 2009).
Penal clause
A penal clause is an accessory undertaking to assume greater liability in case of breach. It is attached to an obligation in order to insure performance. The penalty is
generally a sum of money. But it can also be any other thing stipulated by the parties, including an act or abstention.
Double functions:
1. To provide for liquidated damages; and

2. To strengthen the coercive force of the obligation by the threat of greater responsibility in case of breach
Kinds of penalties
as to origin
a. Legal - it is legal when it is constituted by law

b. Conventional – it is constituted by agreement of the parties
as to purpose
1. compensatory – it is compensatory when it is established for the purpose of indemnifying the damages suffered by the oblige or creditor in case of
breach of the obligation
2. punitive – it is punitive when it is established for the purpose of punishing the obligor or debtor in case of breach of obligation
as to effect
1. subsidiary – it is subsidiary when only the penalty may be demanded in case of breach of the obligation
2. joint – it is joint when injured party may demand the enforcement of both the penalty and the principal
Can the debtor just choose penalty over non-fulfillment?
GENERAL RULE: The debtor cannot exempt himself from the performance of the obligation by paying the penalty (NCC, Art. 1227).
EXCEPTION: When the right has been expressly reserved to the debtor (NCC, Art. 1227).
Creditor cannot demand both the fulfillment of the principal obligation and the penalty
GENERAL RULE: The creditor cannot demand the fulfillment of the obligation and the satisfaction of the penalty at the same time (NCC, Art. 1227).
EXCEPTIONS:
1. When the right has been clearly granted to him;

2. If the creditor has decided to require the fulfillment of the obligation, the performance thereof should become impossible without his fault, the penalty
may be enforced (NCC, Art. 1227).
NOTE: The creditor need not present proof of actual damages suffered by him in order that the penalty may be demanded (NCC, Art. 1228). In this jurisdiction,
there is no difference between a penalty and liquidated damages, so far as the results are concerned. Whatever differences exist between them as a matter of
language, they are treated the same legally (Rabuya, 2017).
Effect of incorporating a penal clause in an obligation
GENERAL RULE: the Penalty fixed by the parties is a compensation or substitute for damages in case of breach.
EXCEPTIONS: Damages shall still be paid even if there is a penal clause if:
1. There is a stipulation to the contrary

2. The debtor refuses to pay the agreed penalty; or
3. The debtor is guilty of fraud in the fulfillment of the obligation (NCC, Art. 1126).
NOTE: The nullity of penal clause does not carry with it that of the principal obligation. For example, the penal clause may be void because it is contrary to law,
morals, good custom, public order or public policy. In such case, the principal obligation subsists if valid.
NOTE: When there are several debtors in an obligation with a penal clause, the divisibility of the principal obligation among the debtors does not necessarily carry
with it the divisibility of the penalty among them
*** END of LESSON***
REFERENCES
Textbooks
Online Reference
www.lawphil.net

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1/20/22, 11:11 AM Laws 1013 - Code 653 - https://usl-tuguegarao.neolms.com/student_lesson/show/3143650?

Laws 1013 - Code 653

Week 1: Introduction to Law

1. It is a rule of conduct (ordinance).

i. Divine positive law (ten commandments)

HISTORY OF THE CIVIL CODE

FEATURES OF THE CIVIL CODE

https://thecorpusjuris.com/legislative/republic-acts/ra-no-386.php (accessed August 14, 2021)

Laws 1013 - Code 653

Week 2: General Provisions

Articles 1156 - 1162

― Oliver Wendell Holmes Jr., The Path of the Law

NATURE OF OBLIGATIONS UNDER THE CIVIL CODE

ESSENTIAL ELEMENTS OF AN OBLIGATION

The following are the essential elements of an obligation:

A promises to paint B’s picture for B as a result of an agreement.

KINDS OF OBLIGATION ACCORDING TO SUBJECT MATTER

There are thus two (2) kinds of personal obligation:

SOURCES OF OBLIGATIONS (how obligation arise)

Time of perfection (when will obligation arise)

LEGAL OBLIGATIONS or Obligation Ex Lege (article 1158)

Characteristics of a legal obligation

1. Does not need the consent of the obligor;

1. Arises from law if it establishes obligation;

CONTRACTUAL OBLIGATIONS (Article 1159)

Requisites of a contractual obligation

Rules governing the obligations arising from contracts

Binding force of obligation ex contractu

Exemptions: Unilateral evasion is allowed when the:

1. Contract authorizes such evasion; or

Difference between an Obligation and Contract

The so-called INNOMINATE CONTRACTS

Do ut des – I gave that you may give.

QUASI-CONTRACT (Art. 1160)

Distinguished from “implied contracts”

2. It must be Unilateral; and

Principal forms of quasi-contracts

Query: is a Quasi-Contract an Implied Contract?

Civil Action Implicitly Instituted in Criminal Case

Liability of an Insane Criminal

Effect of DEATH of Criminal Offender pending trial

Buenaventura Belama vs. Marcelino Polinar

L-24098, Nov. 18, 1967

ISSUE: is his civil liability extinguished?

Effect of ACQUITTAL in criminal Case

QUASI-DELICT (Art. 1162)

1. While driving a car recklessly, Pedro injured a pedestrian.

Definition of NEGLIGENCE (Culpa )

Test for determination of Negligence

Requirements before a person can be held liable for Quasi-Delict

1. there must be fault or negligence attributable to the person charged;

*** END of LESSON 1***

Laws 1013 - Code 653

Week 3 and 4: Nature and Effect of Obligation

Week 3-4/ Lesson 3-4 – Nature and Effect of Obligations

Articles 1163 - 1178

Topic: Nature and Effect of Obligations

Reason behind Art.1163:

* Note: Art. 1163 can be read in conjunction with Art. 1173.

3 kinds of prestation in obligations:

Obligation to give/to deliver

an obligation to give a specific or determinate thing

3 accessory obligations of debtor in an obligation to give (deliver)

2 Purposes of obligations to give/deliver: (Caguioa)

* END of LESSON 1*