NATURE AND EFFECT OF

OBLIGATION PART 1

Mr. Mansilla
LESSON OBJECTIVES:

At the end of this module, I can:

1. State the rights and duties of the debtor and
creditor
2. Identify the remedies available to creditor in
case of non-performance of obligation by the
debtor.
3. Differentiate accessions and accessories and
identify the different kinds of things and fruits
KINDS OF THINGS:
Before anything else, it is important for you to learn that there
are two kinds of thing.

First, determinate or specific thing which is particularly

designated or physical segregated others of the same class.
Example: Toyota Fortuner with Plate No. CAA2275, the ring I am
wearing and a cat named “Meowy”.

Second, indeterminate or generic thing – refers only to a class or

genus to which it pertains and cannot be pointed out with
particularity. Example: 2019 Toyota Fortuner, a ring, and a cat.
It is important that you can distinguish determinate and
indeterminate thing. Why? Because the effect differs in
case of loss.
Example: A sold to B a cat named “Meowy” but
unfortunately because the debtor failed to observe the
diligence required, the cat died while the same is in his
possession waiting for the delivery date. A cannot just
replace the cat with another cat. The death of Meowy
extinguishes the obligation. He needs to return the
payment if there is any and be answerable for damages.
The story is totally different if A sold to B a cat
and the cat died while in the possession of A
waiting for delivery. Even if they agreed with the
kind of specie of the cat, it will still be considered
an indeterminate or generic thing. If the cat died,
the obligation is not extinguished because A can
just get another cat of the same specie in
replacement. The word extinguished can be
understood as terminated.
DUTIES OF DEBTOR IN OBLIGATION TO
GIVE A DETERMINATE THING:
1. To deliver the thing itself (Art. 1163)
2. To take care of the thing with the proper diligence of a
good father of a family unless the law or the stipulation of
the parties requires another standard of care. (Art. 1163)
3. To deliver the fruits of the thing. (Art. 1164)
4. To deliver the accessions and accessories, though may not
have been mentioned in the agreement (Art. 1166)
5. To answer for damages in case of fraud, negligence, delay
in the performance or contravention of the tenor (breach of
contract) (Art. 1170)
DUTIES OF DEBTOR IN OBLIGATION TO GIVE
AN INDETERMINATE THING:
1. To deliver the thing which is of the quality intended by
the parties (Art. 1246)
2. To answer for damages in case of fraud, negligence,
delay in the performance or contravention of the tenor
(breach of contract) (Art. 1170)

One of the duties of the debtor is to deliver the fruits of

the thing. Let us discuss the different kinds of fruits,
shall we?
 KINDS OF FRUITS:
1. Natural Fruits – it is the spontaneous products of
the soil and the young and other animal products. To
be considered as natural fruit, all trees or plants on
lands must be without any human labor involved.
2. Industrial Fruits – are those produced by lands of
any kind through cultivation or labor.
3. Civil Fruits – are those derived by virtue of a
juridical relation. Example is the rents or leases of
lands, buildings and other properties.
 RIGHT OF THE CREDITOR
TO THE FRUIT:
Article 1164. The creditor has a right to the fruits of the thing from the time the
obligation to deliver it arises. However, he shall acquire no real right over it until the
same has been delivered to him.

This article is a little bit confusing at first. But the confusion will start to fade away
once you understand the difference between personal right and real right.

Personal right is the right of a creditor to demand from a specific debtor, as a

definite passive subject, the fulfillment of the obligation to give, to do or not to do.
In other words, a personal right is binding or enforceable only against a particular
person.
 
Real right is the right or interest of a person over a specific thing without a definite
passive subject. In other words, a real right is directed and binding against the
whole world.
“PERSONAL RIGHT” WHEN DELIVERY DATE COMES BUT STILL WAITING FOR
DELIVERY

“REAL RIGHT” ACQUIRED FROM THE TIME DELIVERY OF FRUITS IS MADE

Going back to Article 1164, it stated that the creditor has a right
to the fruits of the thing from the time the obligation to deliver
the thing arises. In other words, when the delivery day comes, the
creditor has the “personal right” against the debtor to demand
for the delivery of the fruits.  
The second sentence stated that “However, he shall acquire no
real right over it until the same has been delivered to him.”,
meaning, he shall only have “real right” from the time the fruit
has been delivered to him.
You might want to ask, when is ownership
acquired then?

Nice question! Ownership and other real rights

over property are acquired and transmitted in
consequence of certain contracts by tradition.
(Art. 712) Tradition is actually a Spanish term
for delivery.
 REMEDIES OF CREDITOR IN CASE OF NON-
PERFORMANCE OF REAL OBLIGATION:
1. Specific Real Obligation (obligation to deliver a determinate thing):
a. He can demand specific performance or fulfillment of the obligation with
right to damages.
b. He can demand rescission or cancellation of the obligation with the right to
recover damages.
c. He can demand payment of damages only where it is the only feasible
remedy.

2. Generic Real Obligation (obligation to deliver a generic thing):

a. He may ask the debtor for the performance of obligation or be performed by
a third person since the object is expressed only according to its family or
genus with right to recover damages in case of breach.
 REMEDIES OF CREDITOR IN POSITIVE
PERSONAL OBLIGATION:
To have the obligation performed by himself or by
another, unless personal considerations are involved, at
the debtor’s expense and to recover damages.

A positive personal obligation means that the debtor

has the obligation to do something for the creditor. Take
note, the creditor cannot compel the debtor to fulfill a
positive personal obligation against his will. Why? It is
because it may amount to involuntary servitude which is
prohibited by law.
REMEDIES OF CREDITOR IN NEGATIVE
PERSONAL OBLIGATION:
A negative personal obligation means that the
debtor has the duty to abstain from doing an act.
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.
 ACCESSIONS AND ACCESSORIES:
Accessions are the fruits of a thing or additions to or
improvements upon a thing.

Examples:
Trees on a land, air-conditioner in a car

Accessories are thing joined to or included with the principal

thing for the latter’s embellishment, better use or completion.

Examples:
Frame of a picture, bow of a violin