Nature and Effect of Obligations THE OBLIGATION TO GIVE (Simplified for Business Law Students) Atty. Glenn Mar P. Acas, CPA September 2020 * REMEMBER: Obligations under Art. 1157: 1. obligation to give 2. obligation to do 3. obligation not to do * OBLIGATION TO GIVE (real obligation) may be an’ 1. obligation to give a determinate or specific thing, or 2. obligation to give an indeterminate or generic thing. + Determinate / Specific Thing vs. Indeterminate / Generic Thing Determinate or Specific Thing — is designated or physically segregated from others of the same class, and is capable of particular designation Ex. Toyota Vios with Plate No. ABC123, Land with TCT No. T-12345 Indeterminate or Generic Thing — refers to a class or genus to which it pertains and cannot be pointed out with particularity. Genus does not perish — genus nunquam pent Ex. A Toyota Car, A parcel of land * Obligation to Give a DETERMINATE THING — Specific Real Obligation Mustration Example: On January 1, 2020, Mr. Dy obliged himself to deliver to Mr. Chi a specific land on September 30, 2020. Active Subject / Creditor / Obligee: Mr. Chi Passive Subject / Debtor / Obligor: Mr. Dy Prestation / Object / Subject Matter: To deliver a specific land (an obligation to give a determinate thing) Efficient Cause / Juridical Tie / Legal Tie / Vinculum Juris: The promise made by Mr. Dy to Mr. ChiA. DUTIES OF THE DEBTOR as a Passive Subject in an obligation to deliver a determinate thing 1. To take care of or preserve the thing pending delivery 2. When the time to deliver arises, to deliver the thing, including its: a. fruits b. accessories c. accessions unless otherwise stipulated 3. To be liable for damages in case of non-fulfiliment or breach. 4, To be liable for damages in case of fraud (dolo), negligence (culpa) or delay (mora) in the performance of his obligation, or in contravention of the tenor thereof. How should the debtor take care of the thing pending delivery? 1. According to what is required by law, if any. 2. According to the stipulation of the parties, if any. 3. Ifthere is no law or stipulation, with the proper diligence of a good father of the family (bonum pater familia), which is also called ordinary care. (Art. 1163) When does the obligation to deliver arise? 1. If there is no term or condition, at the time of the perfection of the contract. 2. If there is a term or condition, then from the moment the term arrives or the condition happens. What are accessions and accessories? " Accessions — everything which is produced by a thing, incorporated or attached thereto, either naturally or scientifically. It includes natural accession, such as alluvion, and industrial accession, such as building, plantings and sowings * Accessories — those things which are for the embellishment, use or preservation of another thing of more importance (ex. keys to a house, hydraulic jack of a car) These two will follow the principal thingWhat are fruits? 1. Natural Fruits - spontaneous products of the soil without the intervention of human labor, and the young and other product of animals with or without the intervention of human labor 2. Industrial Fruits — products of the soil through cultivation or human labor/industry 3. Civil Fruits — fruits as a result of juridical relations, such as rents Who has the right to the fruits? The owner of the thing, of course, under the principle of accessory follows the principal (accessio ceait principali) When is the creditor entitled to the fruits? = He has no right to the fruits, BEFORE the time to deliver arises. * The creditor has a RIGHT (personal right) to the fruits of the thing from the time the obligation to deliver it arises, (Art. 1164) * PERSONAL RIGHT (jus in personam) — a right which is enforceable only against the debtor. Will the creditor automatically become the owner by then? * No * He shall acquire no REAL right over it until the same has been delivered to him (Ari. 1164). * REAL RIGHT (jus in rem) — a right which is enforceable against the whole world, Itis a direct and immediate juridical power over a thing. + General Rule: Delivery transfers ownership. How should the delivery be made by the debtor? Delivery or Tradition may be either ACTUAL or CONSTRUCTIVE.Actual Delivery — where the thing changes hands physically. Constructive Delivery, may be: 1 Traditio Simbolica (symbolical tradition) — like when the keys of a bodega are given 2. Traditio Longa Manu (delivery by mere consent or the pointing out of the object) — like when pointing out the car to be sold. 3. Traditio Brevi Manu (delivery by the short hand, whereby a possessor of a thing not as an owner, becomes the owner) — like when a tenant buys the house he is renting 4, Traditio Constitutum Possessiorum (the opposite of brevi manu, whereby an owner who is the possessor of the thing, retains possession not as an owner) — like when a house owner sells his house, but remains in possession as a tenant. 5. Tradition by Execution of Legal Forms and Solemnities — like when an absolute deed of sale is executed for the selling of the land. B. REMEDIES OF THE CREDITOR as an Active Subject in an obligation to deliver a determinate thing: 1 Demand SPECIFIC PERFORMANCE or Fulfillment, if itis still possible, with a right to indemnity for DAMAGES Demand RESCISION or Cancellation, in some cases, also with a right to recover DAMAGES. Demand for payment of DAMAGES only, where it is the only feasible remedy,Obligation to Give an INDETERMINATE THING - Generic Real Obligation Mlustration Example: On March 1, 2020, Daniel obliged himself to deliver to Carlo a car on October 31, 2020. Active Subject / Creditor / Obligee: Carlo Passive Subject / Debtor / Obligor: Daniel Prestation / Object / Subject Matter: To deliver a car (an obligation to give an indeterminate thing) Efficient Cause / Juridical Tie / Legal Tie / Vinculum Juris: The promise made by Daniel to Carlo A. DUTIES OF THE DEBTOR as a Passive Subject in an obligation to deliver an indeterminate thing: The duties of the passive subject in an obligation to deliver an INDETERMINATE thing, may not accrue unless and until the thing has been set aside from its genus. 1. To deliver a thing which is of the quality intended by the parties taking into consideration the purpose of the obligation and other circumstances To be liable for damages in case of non-fuffillment or breach. To be liable for damages in case of fraud (dolo), negligence (culpa) or delay (mora) in the performance of his obligation, or in contravention of the tenor thereof. ON B. REMEDIES OF THE GREDITOR as an Active Subject in an obligation to deliver an indeterminate thing) 1. Demand SPECIFIC PERFROMANCE or Fulfillment, if its still possible, with a right to indemnity for DAMAGES 2. He may ask that the obligation be complied with at the expense of the debtor. (Art. 1165) 3. Demand RESCISION or Cancellation, in some cases, also with a right to recover DAMAGES. 4. Demand for payment of DAMAGES only, where it is the only feasible remedy.