Article 1164 of the new civil code

3 kinds of fruits:

Natural fruits

 No human intervention

Ex. Papaya (thrown), Births of animal, Products of animals

Industrial fruits

 Cultivation of labor
 Human intervention

Ex. Rice

Civil fruits

 Juridical relation lessor, lease

 Rentor and landlord

Ex. Interest

Right of the creditor to the fruits arises (Specific) (Real obligation)

 Perfection (birth of contract)

 Meeting of minds
 Suspensive condition – suspend
 Contract of sale
o He whoever paid the thing has the right to the object even if it is suspensive
condition.
o If the creditor didn’t paid the in advance the thing the debtor has the right over
the fruit of the thing.

Personal right- Right of power of creditor to demand from debtor (to give, to do or not to do)

 There is active and passive subject

 Debtor vs. Creditor
Ex. Ownership of land

Real right- Interest of person over a specific thing

 Without definite passive subject

 Creditor only (active subject)
 Right is personally enforced
 Active subject only
 Assert you right to everybody as long as there is no claiming
 1 vs. many
Ex. Interest of 3rd party over the land
Ownership acquired by delivery

 Actual delivery (can deliver physically)

Ex. Lazada, Shoppee
 Constructive delivery (cant deliver physically)
 Acquired ownership
Ex. House and Lot, key of the house, certificate of the ownership
 If there is no delivery either actual or constructive the creditor isn’t the owner thereof.
 The proper court action of the creditor
1. Specific performance
2. Rescission of obligation (cancellation)
Article 1165
Remedies of creditor in real obligation (generic or specific)
Specific real obligation

 Demand specific performance of fulfilment to a right to damage

 Demand cancellation right to recover damages also
 Payment of damages (if it is the only remedy)
 Cannot avail remedies at the same time

 Alternative (1 remedy only)

 The very thing itself must be deliver
 Only the debtor can comply
 Creditor must not use force or violence
 Bring the matter to court
Ex. Paint of pictures of a family

Generic real obligation

 Can be performed by a 3rd person

 No specific performance
 Ask 3rd person to fulfill obligation at the expense of original debtor
Ex. Leo oblige himself to deliver a Facemask to reah, if leo failed to deliver a facemask at
the time they agreed, reah may buy a facemask at Reign at the expense of leo.

Where debtor delays or has promised delivery to separate creditors

 Specific thing
 Which comes first (delay or fortuitous events)
 General rule: The debtor is exempted from liability if his non-compliance is due to
fortuitous events
Exempt to the rule:
a. When the obligor delays
b. When the debtor promised to deliver the same thing to two or more persons
having different interest
 Specific thing cannot be the object of destruction by a fortuitous event
 Genus nunquam perit, Genus never perishes (generic thing never perishes, deliver a thing
of the same kind)
Article 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

Accessions

 Fruits of a thing
 Addition, improvement upon a thing (principal)
 Exclusion must expressly stipulate
 Not necessary
Ex. Cellphone and earphone, charger

Accessories

- included

- completion of principal

- needed by principal

Ex. Battery of cellphone, Key of the house, Picture in picture frame

Right of the creditor to accessions and accessories

 All accessions and accessories must be delivered with determinate thing even if not
mentioned.
 If excluded, there must be stipulation.
 Accessory follows the principal
Article 1167
 Positive Personal obligation
Situations contemplated
 Fails to do obligation
 Do the obligation but contrary to the terms
 Performs the obligation but in poor manner
Remedies of creditor in positive personal obligation
 The creditor has the right to
a. Performed by himself or other at the debtor’s expense (unless personal
considerations)
Ex. Moira dela torre
b. Recover damages
c. Contravention of the terms/poorly done- undone if it still possible to undone
at the debtor’s cost (ordered of the court)
Performance by a third person
 The creditor cannot compelled
 Specific performance cannot be ordered in a personal obligation to do, involuntary
servitude prohibited under our constitution.
 Personal qualification of the debtor would different to others
 Indemnification for damages is the only remedy
 If obligation can still be performed at the expense of debtor there is no grant of
damages to the creditor.
Ex. Painting of car
Article 1168
When the obligations consists in not doing and the obligor does what has been forbidden
him, it shall be undone at his expense
 Negative personal obligation
Rmedies of creditor in negative personal obligation
 Not to do the probihited
 No specific performance
 Obligation in not doing the forbidden
 Debtor cannot be guilty of delay (wala ngang act e)

 Undoing the forbidden things plus damages

 If it can’t be undone, actions for damages, in violation his obligation
Article 1169
Those obliged to deliver or to do something incur a delay from the time the oblige judicially
or extrajudicially demands from them the fulfillment of their obligation
The demand by the creditor shall not necessary in order that delay may exist:
-Legal delay

Delay
Ordinary delay
-failure to perform an obligation on time

Legal delay or default or mora

- failure to perform an obligation on time, there is breach of obligation

Kind of delay or default

Mora solvendi- part of debtor
Mora accipiendi- part of creditor
Compensatio morae – delay of both
 No actionable default to both parties
No delay in negative personal obligations
 Delay is impossible
 Not doing what has been forbidden him
Requisites of delay or default by the debtor (Mora solvendi)
1. Failure to perform his positive obligation on the date agreed upon
2. Demand (made by creditor) judicial or extrajudicial
3. Failure of debtor to comply in demand
 If it is not due, there is no delay
 There must be demand after the due date
 If there is no demand, it is assumed that he is giving extension to the debtor
 He is only liable to ordinary delay
When demand is not necessary to put debtor in delay
 When the obligation so provides
If it is stipulated that without the need of any demand, there is delay already and
it assumed legal delay
‘’the debtor will be in default’’
‘’I will be liable for damages’’
 When the law so provides
Ex. Paying of taxes
 When time is of the essence
Ex. Birthday party- balloons
 When demand would be useless ( not necessary)
Ex. Allysa bind himself to deliver a fruits to Ryan on march 15. Through the
negligence of the driver of allysa the fruits damaged. Under this situation, the
demand for the delivery for the fruit would be useless because it is impossible for
her to perform her obligation.
 When there is performance by a party in reciprocal obligations
(Compensatio Morae)
Ex. Online selling via meet up
Article 1170
Grounds for liability
-Voluntary
- breach

1. Fraud
- there is malice
- cannot cover errors of judgement in good faith
-there is intention to cause damage or injury
-Waiver of liability of future is void
- clearly proved
-Liability cannot be reduced
Incidental fraud- obligation arise because of contract
 Not ground for cancellation of contract but ground to liability to pay damages
Causal fraud- Execution of contract
 Ground for cancellation of contract

2.. Negligence
- no malice
-there is NO intention to cause damage or injury
-such waiver in certain cases is allowed
-presumed from the violation of contractual obligation
-liability may reduce according to circumstances
- prevents the normal fulfillment of obligation

3. Delay
4. Contravention of the terms of obligation
- Violation of terms and conditions in agreement
-not due to a fortuitous events or force majure
Article 1171
Responsibility arising from fraud demandable in all obligations. Any waiver of an action for
future fraud is void.
 Past or future
 Incidental fraud
 Demandable
 The court cannot reduce the damages
Waiver of action for future fraud is void
 Future fraud is void (no effect, no waiver)
 Because he knows that he is not liable to it even if he commit fraud
Waiver of action for past fraud valid
 Valid waiver
 Right to indemnity as an act of forgiveness to his part
Article 1172
Responsibility arising from negligence is demandable, but such liability may be reduced by
the courts in some circumstances
 Reduce damages
 No bad faith, delivered intention
 If mutually negligent to each other, the fault of one cancel the negligence of others
Validity of waiver of action arising from negligence
 An action for future negligence may be void unless;
 If the extraordinary diligence requires
 Bad faith = Fraud;
 Any waiver for future negligence is void
Kinds of negligence according to source of obligation
1. Contractual negligence (culpa contractual)
 Negligence ; Breach of contract
 Not source of obligation
 The debtor make liable for damages
2. Civil negligence (culpa aquiliana)
 Quasi delict
 Source of an obligation between 2 parties
 Negligence itself is the source of liability
3. Criminal negligence (culpa criminal)
 The crime is the source of obligation to pay damages
 Civil liability
 Action for quasi delict
 Criminal action or Civil actions for damages; cannot recover twice for the same
negligent
Effect of negligence on the part of injured party
 If the plaintiff was the cause of his own negligence; it cannot recover damagaes
 If the defendant was the cause of negligence; he can recover damages
 If his negligence is contrbibutory (konti lang) the proximate negligence is in the
defendant (mas Malaki kasalanan ng defendant) the court shall reduce the
damages to be awarded
Article 1173
 Diligence of a good father of a family

Factors to be considered when it comes to negligence

1. Nature of the obligation
Ex. Cellphone while driving
2. Circumstances of the person
Ex. A teacher playing online games while in classroom
3. Circumstances of time
Ex.
4. Circumstances of the place
Ex.

Kind of diligence required

1. Agreed upon by parties orally or writing
2. Follow law provides if there is no stipulation
3. Good father of a family if the above mentioned is silent
Article 1174
Fortuitous event- inevitable
 Impossible to foresee, avoid

 Requisites ;
 Independent of human will (wala sya kinalaman)
 Foreseen, inevitable
 The event is the reason why the obligation cannot perform in normal manner
 The debtor must no negligence in his part
 These 4 must be present in order to be exempt from liability
Rules as to liability in case of fortuitous event

 A person is not liable due to damage caused to another in not fulfillment of

performance of his obligation if there is fortuitous event

Exemption: (he is liable even if there is fortuitous event)

1. When expressly specified by law
a. When there is Fraud, negligence, or delay of contravention of the tenor of
obligation
b. The debtor has promised to deliver the same specific thing to 2 or more
persons who do not have the same interest
c. The obligation to deliver a specific thing arises from a crime
d. The thing to be delivered is generic (can be substitute)
-genus never perishes
2. When declared by stipulation
- even if there is fortuitous event, there is liability
-clearly stated, provided
3. When the nature of the obligation requires the assumption of risk
Ex. Insurance
Article 1175
Simple loan or mutuum
 Contract
 One party delivers to other
 Money or consumable thing
 Same amount or same kind , quality shall be paid
 With interest (Stipulation or gratuitous)
Usury
 Contracting or receiving interest in excess of the amount (money, goods, chattels
or credits)
 Excessive interest
 Non EXISTENT (di na sya nag eexist sa batas)
 There is interest only allowed by law
Requisites of recovery of interest
1. Interest must be stipulated
2. Writing in agreement
3. The interest is lawful (not excessive)
 Usurious interest is void
Article 1176
Presumption
 There is presumption unless there is evidence to prove that the presumption Is
wrong
2 kinds of presumption
1. Conclusive presumption
 Cannot be contradicted
2. Disputable (rebuttable) presumption
 Can be contradicted or rebutted by presenting proof

 Interest first before the principal

 Prior installment must be liquidated in rentals

PRESUMPTION DO NOT APPLY

1. With reservation of interest
- No interest on prior installment
- Writing or verbally
2. Receipt without indication of particular installment paid
- Particular month must not indicated to avoid presumption
3. Receipt for a part of principal
- If the principal is paid fully, then there’s only presumption as to pay the interest
4. Payment of taxes
- There is no presumption of payment of previous taxes as to the later ones
5. Non payment proven
- If there is proven fact
Article 1177
Remedies available to creditors for the satisfaction of their claims
1. Exact fulfilment or specific performance with the right to damages
-to demand for the fulfilment
2. leviable (pwede mabenta) the property of the debtor
- auction of things of the debtor in order to court to pay the liability to the creditor
3. Creditor may exercise the rights of the debtor with exceptions
- if the listed above is not enough;
- collect from the Debtor of the debtor
Except: Inherent personal (right to vote, hold office, legal support, revoke a
donation on the ground ingratitude)
4. If tatakas
- Ask the court to rescind or impugn acts or contracts which the debtor may defraud
him
- The debtor is liable with all his property present and future to fulfill his
obligations, unless the exemption
- Hierarchy of the 4, exact fulfilment
Article 1178
Transmissibility of rights
- General rule: All rights acquired in virtue of am obligation can be
transmissible/assignable

EXEMPTION:
1. Probihited by the law
a. Contract of partnership
o Contract of partnership
b. Contract of agency
o Consent on authority of the creditor
c. Contract of commodatum
o It must be return
o Not consumable
o Gratuitous
2. Probihited by stipulation by the parties
- It must be present to the contract itself