02B-BA222-WK2 DEVELOPMENT OF THE LESSON

I. NATURE OF OBLIGATIONS TO GIVE

As a general rule, every person obliged to give something is also obliged to take care of it with
the proper diligence of a good father of a family.

Exceptions:

1) law or 2) stipulations of the parties.

This diligence refers to an obligation to deliver a specific or determinate thing. A thing is said to
be specific or determinate when it is particularly designated or physical segregated from others
of the same class.[ Article 1459, Civil Code.] An example of a determinate thing is a Maroon
Toyota 2018 model with plate no. NDI 1492 and chassis no. 78901234.

Duties of a Debtor in Obligation to Give a Duties of a Debtor in Obligation to Give a

Determinate Thing
1) Preserve the thing
2) Deliver the fruits of the thing
3) Deliver the accessions and accessories
4) Deliver the thing itself
5) Answer for damages
nonfulfillment or breach
Generic Thing
1) Deliver a thing which is of the quality
intended by the parties taking into
consideration the purpose of the obligation
and other circumstances
2) To be liable for damages in case of fraud,
negligence or delay or contravene the tenor of
the obligation
in case of

Duties of a Debtor in Obligation to Give a Determinate Thing

1) Preserve the thing

Diligence of a good father of a family means ordinary care or that diligence which an average
(a reasonably prudent) persons exercise over his own property. There are exceptions based on
either law or agreement by the parties.

2) Deliver the fruits of the thing

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.[ Article
1164, Civil Code.]

a) Natural fruits are the spontaneous products of the soil and the young and other products
of animals. (ex. calf, wild grass)
 02B-BA222-WK2 DEVELOPMENT OF THE LESSON

b) Industrial fruits are those produced by lands of any kind through cultivation or labor.
c) (ex. rice, vegetables)
d) Civil fruits are those derived by virtue of a juridical relation. (ex. rent, amount of life
annuities)

Personal Right Real Right

Right or power of a person to demand from Right or interest of a person over a specific
another the fulfillment of the latter’s obligation thing without a definite passive subject
to give, to do or not to do. against whom the right may be personally
enforced.

Requires a definite active subject and a Requires only a definite active subject without
definite passive subject any passive subject

Binding and enforceable against a particular Directed against the whole world
person

II. NATURE OF OBLIGATIONS TO DO

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.[ Article 1167, Civil
Code.

The creditor may perform the obligation himself or ask somebody else to do it. In any case,
he has a right to ask for damages.

III. NATURE OF OBLIGATIONS NOT TO DO

When the obligation consists in not doing, and the obligor does what has been forbidden him, it
shall be undone at his expense.[ Article 1168, Civil Code.

IV. BREACHES OF OBLIGATIONS

A voluntary breach of an obligation may occur in any of the following forms: (a) delay or
mora, (b) fraud or dolo, (c) negligence or (d) contravention of the tenor of the obligation. In any
of these four (4) instances, the guilty party shall be liable for damages.

A. DELAY
Default or mora signifies the idea of delay in the fulfillment of an obligation with respect to
time.[ Jurado, D.P. (2010). Comments and Jurisprudence on Obligations and Contracts.
Quezon City, Rex Printing Company, Inc.]
 02B-BA222-WK2 DEVELOPMENT OF THE LESSON

Default or mora has three kinds:

1. Mora solvendi or the delay of the obligor or debtor to perform his obligation. It is called
mora solvendi ex re for obligations to give and mora solvendi ex persona for obligations to
do.
2. Mora accipiendi is the delay of the creditor to accept the delivery of the things which is
the object of the obligation.
3. Compensatio morae is the delay of the parties in reciprocal obligations which results to a
no actionable default on the part of both parties.

Kind of Delay Effects

Mora Solvendi 1. Debtor is guilty of breach of an obligation
2. Debtor is liable for interests or damages.
In order for interest to be recovered, the same must
be
a. expressly stipulated1
b. in writing
c. lawful2
3. Debtor is liable even in cases of fortuitous events.
Mora Accipiendi 1. Creditor is guilty of breach of an obligation
2. Creditor is liable for interests or damages.
3. Creditor bears the risk of lost
4. Debtor is not liable for interest
Compensatio Morae 1. The breach of both parties cancel each other as if
there is no default

Three requisites in order that the debtor may be considered in default:

1. the obligation is demandable and already liquidated;
2. the obligor or debtor delays performance;
3. the creditor demands the performance judicially or extra judicial

Except:
a. When the obligation provides that demand is not necessary
b. When the law so provides (ex. Payment of taxes)
c. When time is of the essence (ex. Wedding dress)
d. 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.[ Article 1169, Civil
Code. ]
e. When demand would be useless as when the obligor has rendered it beyond his
power to perform.
 02B-BA222-WK2 DEVELOPMENT OF THE LESSON

B. FRAUD
Fraud or dolo consists in the conscious and intentional proposition to evade the normal
fulfillment of an obligation.

Incidental Fraud (Dolo Incidente) Causal Fraud (Dolo Causante)

Present during the performance of an existing Present during the birth of the obligation
obligation

Employed for the purpose of evading the Employed to secure the consent of the other
normal fulfillment of the obligation party to enter into the contract

Results to a nonfulfillment of the contract Results to a vitiation of consent

Creditor may recover damages Creditor may seek the annulment of the
contract

C. NEGLIGENCE
Negligence or culpa consists in the omission of that diligence which is required by the nature
of the obligation and corresponds with the circumstances of the persons, time and
place.[ Article 1173, Civil Code.] It is practically a question of fact whether the proper degree of
care has been exercised taking into consideration what a reasonable and prudent man would
have done under the circumstances.[ Picart vs. Smith, 37 Phil. 809]

Culpa may either be culpa contractual which requires a preexisting contractual relationship
between the parties or culpa aquiliana, also called tort or quasi delict, when there is no
preexisting contractual relationship between the parties.

The question to be asked is: “Did the defendant in doing the alleged negligent act use the
reasonable care and caution which an ordinarily prudent person would have used in the same
situation?”
 02B-BA222-WK2 DEVELOPMENT OF THE LESSON

FRAUD NEGLIGENCE
Consists of a deliberate intent to cause No such deliberate intent
damage or injury

Waive of liability for future fraud is not Waiver of liability is allowed4

allowed (Article 1171)3

Fraud must be clearly proven Presumed from a violation of contractual

obligations

Liability cannot be mitigated Liability may be reduced depending on the

circumstances (Article 1172)

D. CONTRAVENTION OF THE TENOR OF THE OBLIGATION

This breach includes not only any illicit acts which impairs the strict and faithful fulfillment of the
obligation but also every kind of defective performance.
Remedies available to Creditors in case the Debtor fails to comply with his obligation
1. Exact fulfillment by way of specific performance with right to damages;
2. Pursue the debtor’s property not exempt from attachment;
3. Exercise all rights and bring all the actions of the debtor except those which are
purely personal;
4. Ask the court to rescind or annul acts or contracts which the debtor may have done to
defraud him (Articles 1380 to 1389, Civil Code)

V. FORTUITOUS EVENTS
As a general rule, no person shall be responsible for those events which could not be
foreseen, or which, though foreseen, were inevitable.[ Article 1170, Civil Code.]

Fortuitous event may be defined as an event which could not be foreseen, or which, though
foreseen, were inevitable. It may be produced by two (2) causes: (a) by nature such as
earthquakes, storms, floods, epidemics (fortuitous event proper) and (b) by acts of man such
as an armed invasion, attack by bandits, governmental prohibitions, robbery, etc. (force
majeure). Essentially, there is no substantial difference between the two since both refer to an
event or cause which is independent of the will of the obligor.[ University of Santo Tomas vs.
Descals, 38 Phil. 267.]
 02B-BA222-WK2 DEVELOPMENT OF THE LESSON

Four (4) Essential Conditions:

1. The event must be independent of the will of the obligor
2. The event must either be unforeseeable or inevitable;
3. The event must be of such character as to render it impossible for the obligor to fulfill his
obligation in a normal manner;
4. The obligor must be free from any participation in the aggravation of the injury resulting to
the obligee or creditor.[ 5 Encyclopedia Juridica Espanola, 309 cited in Lasam vs. Smith,
45 Phil 990.] In other words, there must be an entire exclusion of human agency from the
cause of injury or loss.[ Virginia Real vs. Sisenando H. Belo, G.R. No. 146224, January 26,
2007.]

Note: In order to relieve the obligor or debtor of any liability, the act of God or fortuitous event
must not only be the proximate cause of the loss or destruction, it must be the sole cause.[ Tan
Chiong Sian vs. Inchausti & Co., 32 Phil. 152, Limpangco vs. Yangco Steamship Co., 34 Phil.
597, Nakpil & Sons, et. al. vs. Court of Appeals (144 SCRA 596)]

Exceptions:
A. When expressly specified by law
1. Debtor is guilty of delay, fraud, negligence or contravention of the tenor of the
obligation;
2. Debtor promise to deliver the thing to two (2) or more persons who do not have the
same interest.
3. Obligation to deliver a specific thing arises from a crime.
4. The thing to be delivered is generic.
B. When by stipulation of parties, debtor may still be held liable[ Article 1306, Civil Code.]
C. When the nature of the obligation requires the assumption of risk. (ex. Insurance
contracts)