OBLIGATIONS AND CONTRACTS
It is of common observance and
Law on Obligations and Contracts
Defined
The Law on Obligations and Contracts is
the body of rules which deals with the
nature and sources of obligations, rights
and duties arising from agreements and
contracts.
Nature of Agreement and Contract
All contracts contain agreements, but
not all agreements are contracts. An
agreement may or may not be legally
enforceable.
An agreement to take your friend to a
basketball game would not be a legally
enforceable agreement because your
friend has not given you anything in
exchange for that promise. However, an
agreement to buy your friend a ticket to
the Valentine’s Day concert of Martin
Nievera in exchange for your friend’s
repairing your leaking faucet would be
legally enforceable. In this case, there
has been an exchange of value that
binds each party to the other, hence, a
contract is created.
To be enforceable, an agreement must
conform to the law of contracts. The
courts have never been agreeable to the
enforcement of social agreements such
as dinner engagements, agreements to
date or to marry one another, or to live
together without the benefit of a
marriage contract.
Characteristics of law, in its Specific
Sense
1. It is a rule of conduct - law tells us
what shall be done and what shall not be
done.
2. It is obligatory - law is considered a
positive command imposing a duty to
obey and involving sanction which forces
obedience.
3. It is promulgated by legitimate
authority - laws are enacted by congress
the legislative branch of the
government.
4.
benefit - it regulates the relation of
men to maintain harmony in society and
make order and co-existence possible.
Characteristics of law, in its Purpose
1. Substantive Law - that portion of
the body of the law creating and
defining rights and duties which may be
private or public character;
Example; law of obligations and
contracts
2. Adjective Law - procedural law or
remedial law; that portion of the body of
law prescribing the manner or procedure
by which rights may be enforced or their
violation released.
Characteristics of law as to its Subject
Matter
1. Public Law - the body of legal rules
which regulates the rights and duties
arising from the relationship of the state
to the people;
Example; Criminal law, includes
international law that governs the
relations among nations and states, and
constitutional law - governs the relations
between the state and its citizen.
2. Private Law - the body of rules
which regulates the relation of
individuals with one another by purely
private ends,
Example; civil laws, mercantile law, and
civil procedure
ARTICLE 1156. An obligation is a
juridical necessity to give, to do, or
not to do.
Obligation Defined
An obligation is a juridical necessity to
give, to do or not to do. The word
obligation is derived from the Latin word
“obligare” which means “to bind,”
Manresa, a Spanish commentator in Civil
Law, defines obligations as a legal
relation established between one person
and another whereby the latter is bound
to the fulfillment of a prestation which
the former may demand of him.
Obligations may be either civil or
natural. Civil Obligations give a right of
action to compel their performance (Art.
1423.) Hence, the obligee or creditor
has a right to enforce the obligations
against the obligor or debtor in a court
of justice. This is the obligation referred
to in Art. 1156 of the Civil Code.
On the other hand, natural obligations,
not being based on positive law but on
equity and natural law, do not grant a
right of action to enforce their
performance, but after the voluntary
fulfillment by the obligor, they authorize
the retention of what has been delivered
or rendered by reason thereof (Art.
1423.)
Elements of Obligation
1. Active Subject. The active
subject is the oblige or creditor.
He is the possessor of a right. It
is in his favor that the obligation
is constituted. He is the
contracting party to whom the
obligor owes an obligation.
2. Passive Subject. The passive
subject is the obligor or debtor.
He has the duty of giving, doing,
or not ding. He is the party who
is obligated to deliver on a
promise or to undertake some act
of performance.
3. Object or Prestation. It is the
subject matter of the obligation.
The prestation may be to give, to
do or not to do.
4. Efficient Cause. It is also known
as the vinculum juris or juridical
tie. It is in this consideration that
the obligation exists.
Illustration: Under an agreement, A
obliges himself to render tutorial
services to B.
Here, A is the obligor; B is the
obligee; the prestation is the
rendering of tutorial services; and
the agreement between A and B is
the efficient cause.
There may be cases when obligations
arising from certain contracts need
to be manifested in the form
prescribed by law. For example, in a
contract involving a donation where
the value of the personal property
donated exceeds P5,000.00, the law
requires that the donation and the
acceptance by the donee be made in
writing. Non-compliance with this
formality shall render the contract
void or inexistent.
Kinds of Obligation
Viewpoint of Sanction
1. Civil Obligations. There is
juridical tie between the
parties enforceable by court
action.
2. Natural Obligations. There
is juridical tie between the
parties which is not
enforceable by court action.
Voluntary fulfillment of
natural obligations by the
obligor produces legal effects
which the courts will
recognize and protect.
3. Moral Obligations. There is
no juridical tie between the
parties. Voluntary fulfillment
of moral obligations does not
produce any legal effect which
courts will recognize and
protect.
Viewpoint of Performance
1. Positive Obligation. The
obligor is obliged to give or to
do something.
2. Negative Obligation. The
obligor is obliged not to give
or not to do something.
Viewpoint of Subject Matter
1. Real Obligation. The
obligation consists in giving
something.
 2. Personal Obligation. The Obligations ex lege are not
obligation consists in doing or presumed. The Civil Code and special
not doing something. laws are specific as to which
obligations are demandable. The
Viewpoint of Persons
rules set forth under special laws
Obligated to Perform
regulate obligations established
1. Unilateral Obligation. Only therein. Obligations not foreseen in
one party is bound in this the special laws, however, shall be
obligation. regulated by the provisions of Book
2. Bilateral Obligation. The two IV of the Civil Code, Obligations and
parties are mutually or Contracts.
reciprocally bound in this
If regarding an obligation ex lege,
obligation.
there is a conflict between the new
ARTICLE 1157. Obligations arise Civil Code and a special law, the
from: latter prevails unless the contrary
has been expressly stipulated in the
(1) Law; new Civil Code (Art. 18.)
(2) Contracts;
(3) Quasi-contracts; Obligations Derived from Law
(4) Acts or omissions
Examples of obligations derived from
punished by law; and
law are the obligation of husband
(5) Quasi-delicts.
and wife to render mutual help and
Sources of Obligations support under the Family Code; and
the obligation of taxpayers to pay
1. Law (Art. 1158) – manifested in their taxes to the government under
the law the National Internal Revenue Code.
2. Contracts (Art. 1159) –
stipulations provided by the ARTICLE 1159. Obligations
contracting parties arising from contracts have the
3. Quasi-contracts (Art. 1160) – force of law between the
arises from voluntary, unilateral, contracting parties and should be
and lawful which are enforceable complied with in good faith.
in the end and that no person
Contract Defined
shall be unjustly enriched or
benefited at the expense of A contract is a meeting of minds
another. between two persons whereby one
4. Acts or omissions punished by binds himself, with respect to the
law (Art. 1161) other, to give something or to render
5. Quasi-delicts (Art. 1162) – some service.
arises from the damage caused
Freedom of Contract
by the person to the other th

ARTICLE 1158. Obligations

derived from law are not
presumed. Only those expressly
determined in this Code or in
special laws are demandable,
and shall be regulated by the
precepts of the law which
established them; and as to what
has not been foreseen, by the
provisions of this Book.
Obligations arising from contracts
can be enforced between the
contracting parties provided such
contract is not contrary to law.
Although the contracting parties
have the right to establish terms as
may be convenient to them, this
right is limited. For a contract to be
valid, stipulations therein must not
be contrary to law, morals, good
customs, public order, or public
policy (Art. 1306.)
Contracting parties of a valid
contract must comply with its terms
and conditions in good faith.
Illustration: A, borrower, agrees to
pay his debt to B. In their
agreement, they state that in case of
non-payment by A, A shall render
“free” service to B as B’s servant. Is
the obligation valid?
Here, A’s obligation to pay his debt
to B is valid. However, A’s rendering
of free domestic service to B in case
A fails to pay his debt to B is
contrary to law and morals as this
will result to slavery. The term “free”
indicates that the service shall be
gratuitous.
ARTICLE 1160. Obligations
derived from quasi-contracts
shall be subject to the provisions
of Chapter 1, Title XVII, of this
Book.
Title XVII of Book IV deals with
Extra-Contractual Obligations, under
which is Quasi-Contracts as Chapter
1.
Quasi-Contract Defined
Quasi-contract is the juridical
relation that arises from certain
lawful, voluntary and unilateral acts
to the end that no one shall be
unjustly enriched or benefited at the
expense of another (Art. 1160.)
A quasi-contract can be imposed by
a court when someone is unjustly
enriched. It is used when a contract
cannot be enforced or when there is
no actual written or oral agreement.
Applying reasons of justice and
fairness, a court may obligate one
who has unfairly benefited at the
innocent expense of another.
In a quasi-contract, there is no
meeting of the minds between two
persons. It may be distinguished
from a contract where there is
mutual consent.
Two Principal Kinds of Quasi-
Contract
1. Negotiorum Gestio
2. Solutio Indebiti
Negotiorum Gestio
In this case, a person voluntarily
takes charge of the agency or
management of the business or
property of another, without any
power or authority from the latter
(Art. 2144).
(There must be NO PRE-EXISTING
contracts between the parties).
Here, there is unauthorized
management. The power of the
business or property must reimburse
the officious manager necessary and
useful expenses, and for the
damages which the manager may
have suffered in the performance of
his duties (Art. 2150.)
Illustration: A owns a three-hectare
strawberry farm in La Trinidad,
Benguet. While on a three-day trip to
Hong Kong, a strong typhoon struck
the province. B, A’s long-time
neighbor, took the initiative of
harvesting the fruits with the help of
four other neighbors. He incurred
total expenses of P3,000.00
A, here, has an obligation to
reimburse B P3,000.00 on the
principle that no one must be
 unjustly enriched at the expense of
another.
In negotiorum gestio, once the
officious manager has assumed the
agency or management of the
business or property, he is obliged to
continue the same until the
termination of the affair and its
incidents (Art. 2144.) The officious
manager shall perform his duties
with all the diligence of a good father
of a family, and pay the damages
which through his fault or negligence
may be suffered by the owner of the
property or business under
management (Art. 2145.)
Solutio Indebiti
In this case, a person receives
something when he has no right to
demand it. Here, there is undue
payment or undue delivery resulting
from a mistake.
(There must be NO PRE-EXISTING
contracts between the parties).
The recipient, therefore, is obliged to
return the thing (Art. 2154.)
Illustration: A, a grocery cashier, is
supposed to give B, a customer, P40 as
change. A mistakenly gave B P400
instead.
B here has an obligation to return the
P360 excess change. This is based on
the principle that no one must be
unjustly enriched at the expense of
another. If B here did not return the
excess change, A
will have to cover the shortage with her
own money. B will be unjustly enriched
by P360 at the expense of A.
Liability in Case of Undue Payment
or Delivery
In an undue payment, the person who
accepts such payment in bad faith shall
be liable for legal interest; while in an
undue delivery of a thing that produces
fruits, the person shall be liable for fruits
received or fruits which should have
been received. Furthermore, he shall
also be answerable for any loss or
impairment of the thing from any cause,
and for damages to the person who
delivered the
thing, until it is recovered (Art. 2159.)
In quasi-contracts, the damages for
which the obligor who acted in good
faith is liable shall be those that are the
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, in case of
fraud, bad faith, malice or wanton
attitude, the obligor shall be responsible
for all damages which may be
reasonably attributed to the non-
performance of the obligation (Art.
2201.)
Examples of Quasi-Contract
A quasì-contract is likewise created in
each of the following situations:
1. A third person who supports an
orphan, insane or other indigent person
has a right to be reimbursed by the
person obliged to give support. This
provision also applies to a person who
gives support to a child under eighteen
years of age when the child's father or
mother unjustly refuses to support the
child (Art. 2166.)
2. When through an accident or other
cause, a person is injured or becomes
seriously ill, and he is treated or helped
while he is not in a condition to give
consent to a contract, he shall be liable
to pay for the services of the physician
or other person aiding him, unless the
service has been rendered out of pure
generosity (Art. 2167.)
3. When the government, upon the
failure of any person to comply with
health or safety regulations concerning
property, undertakes to do the
necessary work, even over the person's
objection, such person shall be liable to
pay the expenses borne by the
government (Art. 2168.)
4. When in a small community a
majority of the inhabitants of age decide
upon a measure for protection against
lawlessness, fire, flood, storm or other
calamity, any one who objects to the
plan and refuses to contribute to the
expenses but is benefited by the project
as executed shall be liable to pay his
share of said expenses (Art. 2174.)
5. Any person who is constrained to pay
the taxes of another shall be entitled to
reimbursement from the latter (Art.
2175.)
ARTICLE 1161. Civil obligations
arising from criminal offenses shall
be governed by the penal laws,
subject to the provisions of Article
2177, and of the pertinent provision
of Chapter 2, Preliminary Title, on
Human Relations, and of Title XVII
of this Book, regulating damages.
Rules Governing Obligation Ex
Delicto or Ex Maleficio
1. Revised Penal Code (RPC) and other
penal laws, subject to the provisions of
Article 2177 of the Civil Code. Under Art.
2177, in quasi-delicts, the responsibility
for fault or negligence is entirely
separate and distinct from the civil
liability arising from negligence under
the Revised Penal Code. But the plaintiff
cannot recover damages twice for the
same act or omission of the defendant.
2. Chapter 2. Preliminary Title of the
Civil Code, on Human Relations,
3. Title 18, Book IV of the Civil Code, on
Damages
Felony and Crime Defined
Felony is an act or omission punishable
by law. Felonies are committed not only
by means of deceit (dolo) but also by
means of fault (culpa). There is deceit
when the act is performed with
deliberate intent and there is fault when
the wrongful act results from
imprudence, negligence, lack of
foresight, or lack of skill (Art.3.)
A violation of the Revised is called a
felony while a violation of any other
penal statute is called a crime. In
practice the two terms are used
interchangeably.
When a Person Liable for Felony is
Civilly Liable
As a rule, every person liable for a
felony is also civilly liable (Art. 100,
Revised Penal Code.) This article merely
states a general rule. The general rule
that a person criminally liable is also
civilly liable stems from the fact that a
crime does not only cause moral evil but
material damage as well. But not every
felony or crime carries with it a civil
liability. When a crime did not cause
material damage, no civil action may be
brought because there is no civil liability
in the first place. Generally, crimes
against persons, property, and chastity
result in civil liability.
Although the criminal aspect and the
civil aspect of a particular crime are
distinct in that the former affects social
order while the latter private rights,
these two are in a sense intertwined
because the basis of civil liability is the
criminal liability itself. Another thing that
distinguishes one aspect from the other
is that in a criminal case, the purpose
is to punish the offender while in a civil
case, the purpose is to repair the
damage suffered by the aggrieved party.
Enforcement of Civil Liability
Generally, the following rules shall be
observed in the enforcement of civil
liability arising from criminal offenses:
1. Criminal and civil actions. When
the offended party institutes a criminal
action, a civil action arising from the
same offense is impliedly instituted.
Here, the guilt of the offender as to the
crime committed must be proved
beyond reasonable doubt. However, the
offended party may expressly reserve
his right to institute a separate civil
action.
2. Independent civil action. The
offended party expressly reserving his
right to institute a separate civil action
may bring an independent civil action
during the pendency of the criminal
case. Such civil action shall require only
a preponderance of evidence. This
applies to cases provided in Articles 31,
32, 33, 34 and 2177 all of the Civil
Code. Examples of independent civil
actions may be those for defamation,
fraud and physical injuries.
What Civil Liability Arising from
Crime Includes
1. Restitution. The restitution of the
thing itself must be made whenever
possible, with allowance for any
deterioration or diminution in value as
determined by the court. The thing itself
shall be restored, even though it be
found in the possession of a third person
who has acquired it by lawful means,
saving to the after his action against the
proper person who may be liable to him
(Art. 105, Revised Penal Code.)(law of
gain-based recovery)
2. Reparation of the damage caused.
The court shall determine the amount of
damage, taking into consideration the
price of the thing, whenever possible,
and its special sentimental value to the
injured party, and reparation shall be
made accordingly (Art. 10s.)
3. Indemnification for consequential
damages. It shall include not only those
caused the injured party, but also those
suffered by his family or by a third
person by reason of the crime (Art. 107.
Revised Penal Code.) Indemnification for
damages shall comprehend not only the
value of the loss suffered, but also that
of the profits which the obligee failed to
obtain (Art. 2200.)
In crimes, the defendant shall be liable
for all damages which are the natural
and probable consequences of the act or
omission complained of. It is not
necessary that such damages have been
foreseen or could have reasonably been
foreseen by the defendant (Art. 2202.)
Interest, as a part of damages may, in a
proper case, be adjudicated in the
discretion of the court. Interest due shall
earn legal interest from the time it is
judicially demanded, although the
obligation may be silent upon this point
(Arts. 2211 and 2212.)
Illustration: A, B's newly-hired driver,
stole B's Sfarex van. A, on his way to
Pampanga to hide, bumped into a
Tamaraw FX injuring the driver of said
FX.
The van's front bumper was smashed
and damages amount to P20,000.
Should A be convicted, the court would
most probably order him to return the
car, pay the P20,000 damage, and he
may also be required to shoulder the
repairs made on the FX, the
hospitalization expenses of the FX driver
and such other damages as the court
may find justifiable by reason and as a
consequence of the crime
Effect of Acquittal in a Criminal Case
A defendant in a criminal case was
acquitted. May he still be held liable
civilly? It depends on the basis of
acquittal, as follows:
1. If the reason for the acquittal was
because the accused could not have
committed the crime, no civil action can
be brought subsequently.
2. If there was an exempting
circumstance for an acquittal as when
the accused-defendant is insane, his
guardian is still civilly liable. He shall be
personally liable civilly if he has no
guardian or if his guardian is insolvent.
3. If a person is acquitted because guilt
was not proven beyond reasonable
doubt and there is an independent civil
action, civil liability may still arise and
the defendant's liability is proved by
mere preponderance of evidence.
Effect of Defendant's Death Pending
Trial
The death of the defendant in a criminal
case before final judgment does not
extinguish his civil liability. The civil
action shall be directed against the
administrator of the defendant’s estate.
The heirs shall be the ones civilly liable
but such liability shall not exceed the
value of their inheritance.
Damages Recoverable in Case of
Death
The amount of damages for death
caused by a crime or quasi- delict shall
be at least three thousand pesos (Art.
2206.) This minimum amount has now
been raised to P50,000. In addition, the
defendant shall be liable for the loss of
the earning capacity of the deceased,
moral damages and others as may be
deemed necessary.
Persons Exempt From Criminal
Liability
Under Article 12 of the Revised Penal
Code, the following persons are exempt
from criminal liability:
1. An imbecile or insane person. But if
he acted during or lucid interval, then,
he may be held criminally liable.
2. A person under 9 years old.
3. A person over 9 years old but below
15, But if he acted with discernment,
then, he may be held criminally liable.
4. Any person who acts under the
compulsion of an irresistible force,
5. Any person who acts under the
impulse of an uncontrollable fear of an
equal or greater injury.
Let it be noted that these persons are
exempt from criminal liability but not
from civil liability. Thus, this civil liability
shall be the responsibility of their
guardians whose care and authority they
are under.
ARTICLE 1162. Obligations derived
from quasi-delicts shall be governed
by the provisions of Chapter 2, Title
XVIl of this Book, and by special
laws.
Rules Governing Obligation Ex
Quasi-Delict
1. Chapter 2, Title 17, Book IV of the
Civil Code
2. Special Laws
Quasi-delict is that fault or negligence
where a person causes damage to
another in the absence of a contractual
relation between the parties. In such
case, the person at fault is obliged to
pay for the damage done. Quasi-delict is
also known as tort or culpa aquiliana.
Negligence is 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. 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
(Art. 1173).
To Determine Negligence
"The test in determining whether a
person is negligent... is this: Would a
prudent man (in his position) foresee
harm lo 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 v. Smith, 37 Phil.
809.)
Illustration: X Corporation, softdrinks
manufacturer, released a batch of
bottled softdrinks without passing the
Quality Control Department in order to
meet production deadline. A consumer
after taking a bottle of softdrink from
said batch had severe stomach ache,
was brought to a hospital and was
diagnosed to have suffered liquid
poisoning. The physician was positive
that the harmful chemical found in the
softdrink taken caused the same.
In this case, there is an apparent
negligence on the part of X Corporation
because under the usual and normal
circumstances, all bottled softdrinks
manufactured should pass the Quality
Control Department.
Manufacturers and processors of
foodstuffs, drinks, toilet articles and
similar goods shall be liable for death or
injuries caused by any noxious or
harmful substances used, although no
contractual relation exists between them
and the consumers (Art. 2187.)
Illustration: A owns a forty-year old
building in Sta. Cruz, Manila. The
building partially collapsed and a
pedestrian was hit and wounded.
The pedestrian must appropriately be
indemnified for the injuries he suffered.
The proprietor of a building or structure
is responsible for the damages resulting
from its total or partial collapse, if it
should be due to the lack of necessary
repairs (Art. 2190).
Persons Civilly Liable
The obligation arising from quasi-delict
is demandable not only for one's own
acts or omissions, but also for those of
persons for whom one is responsible.
The following persons shall be civilly
liable:
1. The father and, in case of his death or
incapacity, the mother, are responsible
for the damages caused by the minor
children who live in their company,
2. Guardians are liable for damages
caused by the minors or incapacitated
peons who are under their authority and
who live in their company,
3. The owners and managers of an
establishment of enterprise for damages
caused by their employees in the service
of the branches in which the latter are
employed or on the occasion of their
functions,
4. Employers shall be liable for the
damages caused by their employees and
household helpers acting within the
scope of their assigned tasks, even
though the former are not engaged in
any business or industry.
5. The State when it acts through a
special agent; but not when the damage
has been caused by the official to whom
the task done properly pertains.
6. Teachers or heads of establishments
of arts and trades for damages caused
by their pupils and students or
apprentices, so long as they remain in
their custody.
The responsibility of the enumerated
persons shall cease if they can prove
that they observed all the diligence of a
good father of a family to prevent
damage (Art. 2180.)
Requisites to Civil Liability
The plaintiff or the offended party in a
civil action arising from quasi-delict must
prove the following facts before he could
recover damages from the defendant:
1. The fault or negligence of the
defendant.
2. The damage or injury suffered by the
plaintiff
3. The direct relation between fault or
negligence of the defendant and the
damage suffered by the plaintiff.
Illustration: A was driving his car in a
highway at a speed above that required
frequently beating the red light. His car
collided with another. A was badly
injured.
Here, A cannot recover damages from
the other party in the collision because it
is his negligence which caused the
accident.
Unless there is proof to the contrary, it
is presumed that a person driving a
motor vehicle has been negligent if at
the time of the mishap, he was violating
any traffic regulation (Art. 2185.)
Kinds of Negligence
1. Culpa aquiliana or quasi-delict. In
culpa aquilliana, the source of the
obligation is negligence with no criminal
intent. There may or may not be an
existing contract.
2. Culpa contractual. In culpa
contractual, the source of the obligation
is the contract. There is negligence in
carrying out the terms and conditions
under an existing contract.
Quasi-Delict as Distinguished from
Crime
1. Quasi-delict affects private interests
while crime, public interest.
2. Civil Code provisions that primarily
govern quasi-delicts merely repair
damages sustained or incurred while the
Revised Penal Code and other penal laws
punish and correct criminal acts.
3. Quasi-delicts include all acts in which
any kind of fault or negligence
intervenes while crimes are punished
only if there are laws that clearly cover
them.
Article 1163. 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
unless the law or the stipulations of
the parties require another standard
of care.
Specific or determinate thing
Particularly designated or physically
segregated of all of the same class. It is
indicated by its individuality. The debtor
cannot substitute the thing although of
the same kind and quality without the
consent of the creditor.
Generic or indeterminate thing
Refers to the specie or genus to which it
pertains and need not to be pointed out
by its particularity. It is indicated by its
specie or genus. The debtor can
substitute the thing as of the same class
as long as of the same kind.
Duties of the debtor in obligation to
deliver a specific thing
1. Preserve the thing with the
proper diligence of a good father
of a family.
2. Deliver the fruits of the thing.
3. Deliver the accession and
accessories.
4. Deliver the thing itself.
5. Answer for damages in case of
non-fulfillment or breach.
Duties of the debtor in obligation to
deliver a generic thing
 1. To deliver a thing of which the
quality intended by the parties
taking into the consideration and
purpose of the obligation and
other circumstances.
2. To be held liable for damages in
case of fraud, negligence, or
delay, in the performance of the
obligation, or the contravention
of the tenor thereof.
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.
Different kinds of fruits
The fruits mentioned by the law refer to
natural, industrial, and civil fruits.
1. Natural fruits are the
spontaneous products of the soil,
and the young and other
products of animals. (without
intervention of human labor)
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.
Meaning of Personal Right and Real
Right
1. Personal right is the right or
power of a person (creditor) to
demand from another (debtor),
as a definite passive subject, the
fulfillment of the latter’s
obligation to give, to do, and not
to do.
2. Real right is the right or interest
of a person over a specific thing
(like ownership, possession,
mortgage), without a definite
passive subject against whom the
right may be personally enforced.
Article 1165. When what is to be
delivered is a determinate thing, the
creditor, in addition to the right
granted to him by Article 1170, amy
compel the debtor to make the
deliver.
If the thing is indeterminate thing or
generic, he may ask that the
obligation be complied with at the
expense of the debtor.
If the obligor delays, or has
promised to deliver the same thing
to two or more persons who do not
have the same interest, he shall be
responsible for fortuitous event until
he has effected the delivery.
Remedies of creditor in real
obligation.
1. Specific real obligation (obligation
to deliver a determinate thing),
the creditor may exercise the
following remedies or rights in
case the debtor fails to comply
with his obligation:
(a) Demand specific performance
or fulfillment (if it is still
possible) of the obligation
with a right to indemnify for
damages; or
(b) Demand rescission or
cancellation (in certain cases)
of the obligation also with a
right to recover damages; or
(c) Demand payment of damages
only, where it is the only
feasible remedy.
2. Generic real obligation (obligation
to deliver a generic thing), on the
other hand, can be performed by
a third person since the object is
expressed only according to its
family or genus. It is, thus, not
necessary for the creditor to
compel the debtor to make the
delivery, although he may ask for
performance of the obligation.
Article 1166. The obligation to give
a determinate thing includes that of
delivering all its accessions and a. To have the obligation
accessories, even though they may performed by himself, or by
not have been mentioned. another, unless personal
considerations are involved,
at the debtor’s expense; and
Meaning of accessions and b. To recover damages.
accessories. 2. In case the obligation is done in
contravention of the terms of the
1. Accessions are the fruits of a same or is poorly done, it may be
thing or additions to or ordered (by the court upon
improvements upon a thing (the complaint) that it be undone if it
principal) is still possible to undo what was
2. Accessories are things joined to undone.
or included with the principal
thing for the latte’s Performance by a third person.
embellishment, better use, or
A personal obligation to do, like a real
completion.
obligation to deliver a generic thing, can
General Rule: All accessions and be performed by a third person. While
accessories are considered included in the debtor can be compelled to make
the obligation to deliver a determinate the delivery of a specific thing, a specific
thing although they may not have been performance cannot be ordered in a
mentioned. This rule is based on the personal obligation to do because this
principle of law that the accessory may amount to involuntary servitude
follows the principal. which, as a rule, is prohibited under our
Constitution.
Article 1167. If a person obliged to
do something fails to do it, the same Where, however, the personal
shall be executed at his cost. qualifications of the debtor are the
determining motive for the obligation
This same rule shall be observed if contracted (to sing in a night club), the
he does it in contravention of the performance of the same by another
tenor of the obligation. would be impossible or would result to
Furthermore, it may be decreed that be different that the obligation could not
what has been poorly done be be considered performed. Hence, the
undone. only feasible remedy of the creditor is
indemnification for damages. But where
Situations contemplated in Article
the obligation can still be performed at
1167.
the expense of the debtor
1. The debtor fails to perform an notwithstanding his failure or refusal to
obligation to do; do so, the court is not authorized to
2. The debtor performs an merely grant the damages to the
obligation to do but contrary to creditor.
the terms thereof; or
Article 1168. When the obligation
3. The debtor performs an
consists in not doing, and the
obligation to do but in poor
obligor does what has been
manner.
forbidden him, it shall also be
Remedies of creditor in positive undone at his expense.
personal obligation.
Remedies of creditor in negative
1. If the debtor fails to comply with personal obligation.
his obligation to do, the creditor
In an obligation not to do, the duty of
has the right:
the obligor is to abstain from an act.
Here, there is no specific performance.
The very obligation is fulfilled in not
doing what is forbidden. Hence, in this
kind of obligation the debtor cannot be
guilty of delay.
As a rule, the remedy of the oblige is the
undoing of the forbidden things plus
damages. However, if it is not possible
to undo what was done, either physically
or legally, or because of the rights
acquired by third persons who acted in
good faith, or for some other reason, his
remedy is an action for damages caused
by the debtor’s violation of his
obligation.
Article 1169. Those obliged to
deliver or to do something incur in
delay from the time the oblige
judicially or extra-judicially
demands from them the fulfillment
of their obligation.
1. Ordinary delay is merely the
failure to perform an obligation
on time.
2. Legal delay or default or more is
the failure to perform an
obligation on time which failure
constitutes a breach of the
obligation.
Kinds of delay or default.
1. Mora solvendi or the delay on
the part of the debtor to fulfill his
obligation (to give or to do);
2. Mora accipiendi or the delay on
the part of the creditor to accept
the performance of the
obligations; and
3. Compensatio morae or the
delay of the obligors in reciprocal
obligation; the delay of the
obligor cancels the delay of the
obligee, and vice versa.

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 declares; pr
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 incumber upon him. From
the moment one of the parties
fulfills his obligation, delay by the
other begins.

Meaning of delay.