BUSINESS LAW

Onego, Joselito R. March 28, 2022

Prof. Lino Malapascua BSBA 1P

OBLIGATIONS AND CONTRACTS

Questions WFH#3
1. Distinguish the Specific or Determinate Thing; Generic or Indeterminate
Thing.
The specific or determinate is identified by its individuality. For example
“the shirt I am wearing”. And the generic or indeterminate is identified only by
its specie. For example a police dog.

2. What are the duties of Debtor in Obligation?

I. Preserve the thing- in obligations to give the obligor has the incidental
duty to take care of the thing.

A. Diligence of a good father of a family - the phrase has been equated with
ordinary care or that diligence which an average person exercises over his
own property.

B. Another standard of care - however, if the law or the stipulation of the

parties provide for another standard of care said law or stipulation must
prevail. Under the law, for instance, a common carrier ( person or company
engaged in the transportation of persons and or cargoes) is "bound to carry
the passengers safely as far as human care and foresight can provide.

C. Factors to be considered - the diligence required necessarily depends

upon the nature of the obligation and corresponds with the circumstances of
the person, of the time, and of the place. As a general rule, the debtor is not
liable if his failure to preserve the thing is not due to his fault or negligence but
to fortuitous events or event or effect that cannot be anticipated or controlled.
 For example the seller binds himself to deliver a specific car to a buyer on
a certain date. Pending delivery, Seller has the additional or accessory duty to
take care of the car with the diligence of a good father of a family, like
cleaning it regularly, keeping it in a safe place, etc. In other words, Seller must
exercise that diligence which he would exercise over another car belonging to
him and which he is not under obligation to deliver to buyer.

D. Reason for debtor's of obligation - the debtor must exercise diligence to

insure that the thing to be delivered would subsist in the same condition as it
was when the obligation was contracted.

II. 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.

III. Deliver the accessions and accessories

The obligation to give a determinate thing includes that of delivering all its
accessions and accessories, even though they may not have been
mentioned.

IV. Deliver the thing itself

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
stipulation of the parties requires another standard of care.

V. Answer for damages in case of non fulfillment or breach.

Those who in the performance of their obligations are guilty of fraud,
negligence, or delay, and those who in any manner contravene the tenor
thereof, are liable for damages.
3. What are the different kinds of fruits? Explain each.
I. Natural fruits - are the spontaneous products of the soil, and the young and
other products of animals.
For example: Trees and plants on lands produced without the intervention
of human labor.

II. Industrial fruits are those produced by lands of any kind through
cultivation or labor. For example Sugar cane, corns, rice and all products of
plants brought about by reason of human labor.

III. Civil fruits are those derived by virtue of a juridical relation. For example
rents of buildings and price of leases lands and properties.

4. Discuss the Right of Creditor to the fruits.

Creditor is entitled to the fruits of the thing to be delivered from the time
the obligation to make delivery arises. The intention of the law is to protect the
interest of the obligee should the obligor commit delay, purposely or
otherwise, in the fulfillment of his obligation.

5. Give the 4 situations when obligation to deliver fruits arises.

I. Generally, the obligation to deliver the thing due and, consequently, the
fruits thereof, if any, arises from the time of the " perfection of the contract".
Perfection, in this case, refers to the birth of the contract or the meeting of the
minds between the parties.

II. If the obligation is subject to a suspensive condition or period, it arises upon

the fulfillment of the condition or arrival of the term. However, the parties may
make a stipulation to the contrary as regards the right of the creditor to the
fruits of the thing.
III. In a contract of sale, the obligation arises from the perfection of the
contract even if the obligation is subject to a suspensive condition or a
suspensive period where the price has been paid.

IV. In obligations to give arising from law, quasi contracts, delicts and quasi-
delicts, the time of performance is determined by the specific provisions of the
law applicable.

6. Give the meaning of Personal Right and Real Right.

I. Personal right is the right or power of a person to demand from another as a
definite passive subject, the fulfillment of the latter's obligation to give, to do or
not to do.

II. Real right is the right or interest of a person over a specific thing like
ownership, possession, without a definite passive subject against whom the
right may be personally enforced

7. Distinguish Personal Right from Real Right.

I. in personal right there is a definite active subject and a definite passive
subject, while in real right, there is only a definite active subject without any
definite passive subject.

II. A personal right is, therefore, binding or enforceable only against a

particular person, while a real right is directed against the whole world.
Example:

8. Discuss how Ownership is acquired by delivery.

Ownership and other real rights over property are acquired and
transmitted in consequence of certain contracts by tradition or delivery.
Ownership of the thing sold may be acquired by the buyer from the moment it
is delivered to him.
In sale, for example mere agreement on the terms thereof does not affect
transfer of ownership of the thing sold in the absence of delivery actual or
constructive of the thing.
 For example Seller is obliged to give to Buyer on July 25 a particular
horse. Before July 25,Buyer has no right over the horse. Buyer will acquire a
personal right against Seller to fulfill his obligation only from July 25.

9. Give the remedies of Creditor in Specific Real Obligation.

In a 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 indemnity for damages.

B. The demand rescission or cancellation in certain cases of the obligation

also with a right to recover damages.

C. Demand payment of damages only, where it is the only feasible remedy.

In an obligation to deliver a determinate thing, the very thing itself must be
delivered.

10. How about the remedies in a Generic Real Obligation?

A 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.

For example
Seller 1 obliges himself to deliver to buyer a 100 sacks of rice on December 4
for P50,000.
If seller 1 did not comply with his obligation, Buyer may buy rice from
seller 2 a third person.