NATURE AND EFFECT OF OBLIGATIONS

Duties of the Debtor:

1. Preserve the thing. (1163)
2. Deliver the fruits of the thing. (1164)
3. Deliver the accessions and accessories. (1166)
Specific/determinate 4. Deliver the thing itself.
5. Answer for damages in case of breach. (1170)
(1163) Remedies of the creditor: (alternative)
1. demand specific performance + damages (court)
To give 2. demand rescission or cancellation + damages (return)
(RO) 3. demand damages (where it is the only feasible remedy)
Duties of the debtor:
1. to deliver the thing which is of the quality intended.
2. to be liable for damages in case of breach. (1170)

Juridical Generic/indeterminate Remedies of the creditor: (alternative)

1. to ask that the obligation be complied with at the expense of
Necessity the debtor (1165)
OBLIGATION (gives the 2. demand damages. (1170)
Remedies of the creditor: 1167
(1156) creditor a 1. Debtor fails to perform:
right of a. have the obligation be performed at the debtor’s expense. (personal considerations)
b. to recover damages. (1170)
action)
2. Done in contravention of the terms of the same or is poorly done.
a. Have the same be executed at the debtor’s expense. (1167)
To do b. demand damages. (1170)
(PPO)
3. If the debtor performs but does it poorly.
a. Have the same be undone at the debtor’s expense. (1167)
b. demand damages. (1170)

Note: you cannot compel someone to do something for you, this will be in violation
of his constitutional right against involuntary servitude! (Art. 3 Sec. 18)
Not to do Remedies of the creditor: (Art. 3 Sec. 18) 1168
a. Have the same be undone at the debtor’s expense. (1167)
(NPO) b. demand damages. (1170)

Other obligations in an obligation to deliver a determinate thing:

Preserve the Default: Diligence of a good father of a family – ordinary care/reasonable person/his property
Exception: Unless required by law or stipulation of the parties. (carriage/banks – extraordinary care;)
thing Exception to the exception: Absolute exemption = not allowed because it is contrary to public policy.
1163
Kinds of fruits:
(1) Natural Fruits – spontaneous product of soil, animals (no human intervention)
(2) Industrial Fruits – produced by lands through cultivation and labor
(3) Civil Fruits – derived by virtue of a juridical relation (rent)

Creditor has the right to the fruits of the thing from the time the obligation to make delivery arises.
When?
(a) upon perfection of the contract. (birth of the contract)
(b) upon happening of condition in an obligation with a suspensive condition or period. (can be changed by
Deliver the Fruits stipulation)
1164 (c) In a contract of sale, upon perfection (even if subject to a suspensive condition or period).
(d) obligations arising from law and other sources (except contract) – specific provision of law.

He shall acquire no real right over it until the same has been delivered to him. (1164)
Personal right – right or power to demand from another, the fulfillment of the latter’s obligation.
Real right – right or interest over a specific thing (ownership, possession, mortgage) – indefinite subject

Real right → delivery

(1) Accessions – are the fruits of the thing or additions to or improvements upon a thing (principal)
Examples:
House or trees on a land; rent of a building; air-conditioner in a car;

(2) Accessories – are things joined together to or included with the principal thing for the latter’s embellishment,
better use or completion.
Accessories and Examples:
Accessions Key of a house; frame of a picture; bracelet of a watch; machinery in a factory; bow of a violin.
1166
GR: All accessions and accessories are included in the obligation to deliver a determinate thing although they may not
have been mentioned. “The accessory follows the principal.”
Exception: Excluded if stipulated.

Not applied vv. Except stipulated.

 It is the deliberate or intentional evasion of the normal fulfillment of an obligation.
Synonymous to bad faith.
- employed in the performance of the obligation – “there is already an existing valid
Incidental Fraud
Fraud (dolo) contract.”
(dolo incidente)
Remedy: Damages
(1170)
*court has no
power to mitigate Waiver of action for future fraud – void (it will encourage perpetration of fraud)
1171 Waiver of action for past fraud – valid (act of generosity of the victim)
Causal Fraud
Fraud employed in the execution of a contract – vitiates the consent
(dolo causante)
Remedy: 1390,1391 – annulment or set aside on the ground of the fraud.
(1338)
It is any voluntary
act or omission, Contractual Negligence* – negligence in contracts resulting to their breach.
there being no bad
faith or malice, Civil Negligence – which by itself is the source of an obligation between the parties not
which prevents the so related before any pre-existing contract. (Quasi-Delict)
normal fulfillment of
an obligation.
Negligence Criminal Negligence – negligence in the commission of a crime.
(fault or How to know if *in negligent cases, the aggrieved party may choose between a criminal action (RPC
culpa) there is a 100) or a civil action for damages under 2176.
negligence?
*question of fact/ 2177 – double recovery of damages for the same offense is not allowed by law.
*court has power
depends upon the Example: Reckless imprudence resulting to homicide.
to mitigate
It is a crime and also a quasi-delict (because there is negligence)
Grounds 1172 circumstance of The person is liable for:
the: Damages because of quasi-delict
for 1. Nature. Damages because of the criminal offense.
Liability 2. Person. *Double recovery od damages from the same offense is not allowed by the law!
3. Time.
to pay 4. Place.
damages
Mora Solvendi – delay on the part of the debtor to fulfill his obligation (to give, to do)
(1170) Requisites:
Applicable to all 1. failure on the date agreed upon,
kinds of Legal delay – is 2. Demand (not mere reminder or notice) made by the creditor upon the debtor to
obligation the failure to
(1157)
comply with his obligation. (judicial – filed in court; extrajudicial – orally/writing)
perform an 3. failure of the debtor to comply with such demand.
*Breach is obligation on time
voluntary which failure Effects of Delay:
constitutes a 1. debtor is guilty of breach or violation of the obligation.
breach of 2. he is liable to the creditor for interest (obligations to pay money) or damages(other).
obligation. 3. He is liable even for a fortuitous event when the obligation is to deliver a determinate
thing.
“No delay in obligation Exception: if debtor can prove that the thing would still be lost even if not in delay, the
Delay not to do” court may mitigate the damages.
(mora)
Legal delay Demand is not Mora Accipiendi – delay on the part of the creditor to accept the performance of the
1169 needed to incur a obligation.
delay:
1. Stipulation. Effects of Delay:
2. Law. 1. The creditor is guilty of breach of obligation
3. Time is the 2. He is liable for damages suffered, if any, by the debtor.
essence of the 3. he bears the risk of loss of the thing due. 1262
obligation. 4. Where the obligation is to pay money, the debtor is not liable for interest from the time
4. demand would of the creditor’s delay.
be useless. 5. the debtor may release himself from the obligation by the consignation or deposit in
5. Reciprocal court of the thing or sum due.
Obligations. Compensation morae – delay of the obligors in reciprocal obligations (sale), no
actionable default on the part of both parties.
There is no default or delay on the part of both parties.

Contravention
of the tenor

Fortuitous Event
• Any event which cannot be foreseen, or which, through foreseen, is inevitable.
• It is an event which is either impossible to foresee or impossible to avoid.
• The essence of a fortuitous event consists of being a happening independent of the will of the debtor which happening, makes
the normal fulfillment of the obligation impossible.

Fortuitous events vs. Force Majeure

• Fortuitous events – acts of man
• Force Majeur – acts of God

Requisites of a Fortuitous event:

1. event must be independent of the human will or at least of the debtor’s will.
2. the event could not be foreseen, or if foreseen, is inevitable.
3. the event must be of such a character as to render it impossible for the debtor to comply with his obligation in a normal manner;
and
4. the debtor must be free from any anticipation in, or the aggravation of, the injury to the creditor, that is there is no concurrent
negligence on his part.

*Absence of any would prevent the debtor from being exempt from liability.
*Mere pecuniary inability or poverty is not an excuse for the non-fulfillment of an obligation.
*mere difficulty to foresee the happening of an event is different from impossibility to foresee.

General Rule: A person is not responsible for loss or damage caused to another resulting from the non-performance of his obligation
due to a fortuitous events. “His obligation is extinguished”

Except: (not exempted even though there is a fortuitous event)

1. Expressly specified by law.
a. guilty of fraud, negligence, delay, or contravention of the tenor of the obligation. (1170)
b. debtor promised to deliver the specific thing to 2 or more persons
c. the obligation to deliver a specific thing arises from a crime. 1268
d. the thing to be delivered is generic. 1263
2. When declared by the stipulation.
*liberty of contracts.
*should be clearly expressed.
3. When the nature of the obligation requires the assumption of risk.
The loss or damage is an essential element of an obligation.