BOOK IV  Contracts (obligation ex contractu) – like the duty

Obligations and Contracts to repay a loan by virtue of an agreement.

TITLE I  Quasi-contracts (obligations ex quasi-contractu) –
Obligations like the duty to refund an “over change” of money
CHAPTER I because of the quasi-contract of solution indebiti
General Provisions or “undue payment.”
 Crimes or Acts of Omissions Punished by Law
ARTICLE 1156. (obligations ex maleficio or ex delicto) – like the
“An obligation is a juridical necessity to give, duty to return a stolen carabao.
to do or not to do. (n)”  Quasi-delicts or Torts- (obligation ex quasi-delicto
“Ang obligasyon ay isang Juridical necessity na or ex quasi-maleficio)- like the duty to repair
magbigay, gawin at hindi gawin.” damage due to negligence.

Obligation derived from the latin word ARTICLE 1158.

“obligatio” meaning tying or binding. Joridical “Obligations derived from law are not
necessity connote that in case of noncompliance, presumed. Only those expressly determined in
there will be legal sanction. this Code or in special laws are demandable, and
shall be regulated by the precepts of the law
Elements: which establishes them; and as to what has not
 Active Subject – the one is demanding the been foreseen, by the provisions of this Book.
performance (Creditor) (1090)”
 Passive Subject – the one bound to perform the “Ang mga obligasyon na hango sa batas ay hindi
prestation to give, to give, to do or not to do inaakala. Ang mga obligasyon lamang na hayagang
 Prestation or Object – the subject matter of the nakasaad sa Code na ito at sa mga espesyal na batas
obligation ang may bisa, at pinapatakbo ng mga utos ng batas
 Efficient Cause – the juridical tie or vinculum by na nagtatag ng mga ito; para sa mga obligasyon na
virtue of which the debtor has become bound to hindi inaasahan, sila ay bibigyang bisa ng probisyon
perform the prestation ng Libro na ito.”

ARTICLE 1157. Discussion:

Obligation arise from: When obligations are not expressly provided by
1. Law; law, they cannot be presumed to exist – thus making
2. Contracts; the not demandable nor enforceable.
3. Quasi-Contracts; When the act itself is the source of the obligation
4. Act or omissions punished by law; and and not the law:
5. Quasi-delicts The law merely acknowledges the existence of
an obligation generated by an act;
Ang obligasyon ay maaaring manggaling: It constitutes a contract, quasi-contract, delict or
1. Batas; quasi-delict;
2. Kontrata; Its only purpose is to regulate the obligation
3. Quasi-Kontrata which did not arise from the law.
4. Kilos o kilos na masama na pinaparusahan
ng batas; at When the source of the obligation is the law itself:
5. Quasi-delicts 1. The law creates the obligation;
2. The act upon which it is based is nothing more
Sources of Obligations than a mere factor for determining the moment
 Law (obligation ex lege)-like the duty to pay taxes when it becomes demandable.
and to support one’s family.
 multiple judicial relations which result in
ARTICLE 1159. obligations for the delivery of the thing or rendition
“Obligations arising from contracts have the of service.
force of law between the contracting parties and ARTICLE 1161.
should be complied with in good faith.” “Civil obligations arising from criminal
“Ang mga obligasyon na nag simula sa mga offenses shall be governed by the penal laws,
kontrata at nagkaroon ng bisa sa batas sa pagitan ng subject to the provisions of Article 2177, and the
mga nagkasundong partido ay dapat gampanan ito pertinent provisions of chapter 2, Preliminary
ng may mabuting kalooban.” title on Human Relations, and to Title XVIII of
this Book, regulating damages.”
*Distinction between Obligation and Contract “Ang mga obligasyong sibil na nagmumula sa
 Obligation – is a judicial necessity to give, to do mga criminal na opensa ay dapat pamunuan ng mga
or not to do (1156), while batas na pang penal, na naayos sa mga probisyon ng
 Contract – is the meeting of the minds between Artikulo 2177 at ng mga pertenenteng probisyon ng
two persons whereby one bind himself with Chapter 2, Prelimary Title sa Human Relations at ng
respect to the other, to give something or to render Title XVIII ng aklat na ito na nagsasaayos ng mg
some services. (Art.1305) danyos.”
 Obligation Arising from contracts – it is an
established doctrine of law and sustained by the Rules Governing Civil Obligations Arising fromm
settled practice of the courts, that a man obligates Criminal offenses.
himself to do that to which he promises to be 1. Penal laws like the Revised Penal Code. The
bound, because that which is agreed to in a Penal Code contains a Chapter on civil liability
contract is the law between such contracting (Articles 100 to 113)
parties. This rule, however, is subject to a 2. Article 2176 (Quasi – delict)
condition that a court is not contrary to law, 3. Pertinent provisions of chapter 2 (Preliminary
morals, good customs, public order, or public Title) on Human Relations – particularly
policy. Articles 26, 29, 30, 32, 33, 35 and 36, NCC;
4. Title XVII of this code involving damages
ARTICLE 1160. (Articles 2195 to 2235)
“Obligations derived from quasi-contracts
shall be subject to the provisions of Chapter I, ARTICLE 1162.
Title XVII of this Book.” “Obligations derived from quasi-delicts shall
“Ang mga obligasyong galing sa quasi-contracts be governed by the provisions of Chapter 2, Title
ay maipapasailalim sa mga probisyong nakasaad sa XVII of this Book, and by special laws. (1093a)”
Chapter I, Title XVII ng Librong ito.” “Ang mga obligasyon na nagmula sa quasi-
delicts ay nasasakupan ng probisyon ng Chapter 2,
Discussion: Title XVII ng Aklat na ito, at ng mga espesyal na
A quasi-contract is a juridical relation which batas.”
arises from a lawful, voluntary and unilateral act/s
executed by somebody for the benefit of another Discussion:
and for which the former must be indemnified to the A quasi delict is an act or omission by a person
end that no one shall be enriched or benefited at the which causes damage to another giving rise to an
expense of another (Article 2142). obligation to pay for the damage done, there being
Presumptive Consent - The consent in quasi- fault or negligence but there is no preexisting
contracts is referred to as presumptive consent. contractual relation between the parties. Requisites
Since a quasi-contract is unilateral contract created of Quasi delict.
by the act/s of the gestor, the consent is provided by
law through presumption. This consent gives rise to
Before a person can be held liable for quasi delict,  “The diligence of a good father of a family” is the
the following requisites must be present: diligence required on this article and if
1. There must be an act or omission; extraordinary diligence is required, then the
2. There must be fault or negligence obligor shall exercise extraordinary diligence.
3. There must be damage caused;
4. There must be a direct relation of cause and effect
between the act or omission and the damage; and ARTICLE 1164.
5.There is no preexisting contractual relation “The creditor has a right to the fruits of the
between the parties. thing from the time the obligation to deliver it
arises. However, he shall acquire no real right
Crime Distinguished from Quasi delict. over it until the same has been delivered to him.
1. In crime, there is criminal or malicious intent or (1095)”
criminal negligence, while in quasi delict, there is “And nagpautang ay may karapatan sa mga
only negligence; bunga ng bagay mula sa oras na ang obligasyon na
2. In crime, the purpose is punishment, while in ihatid ito ay nagsimula. Ngunit, Siya ay dapat
quasi delict, indemnification of the offended party; walang “real right” sa mga bagay na nasaad
3. Crime affects public interest, while quasi delict hanggang ang mga ito ay maihatid sa kanya.”
concerns private interest in crime, there are
generally two liabilities: criminal and civil, while in Discussion:
quasi delict, there is only civil liability; The Debtor’s Obligation to deliver arise when:
4. Criminal liability cannot be compromised or 1. When the obligation is based on law, quasi-
settled by the parties themselves, while the liability delict, quasi-contract or crime, specific provisions
for quasi delict can be compromised as any other of the applicable law shall determine when the
civil liability; delivery shall be done or affected.
5. In crime, the guilt of the accused must be proved 2. When the obligation is subject to a
beyond reasonable doubt, while in quasi de1ict the suspensive condition, the obligation to deliver
fault or negligence of the defendant need only be arises from the happening of the condition.
proved by preponderance (i.e., superior or greater 3. When the obligation is subject to a
weight) of evidence. suspensive term or period, the obligation to
deliver arises from the lapse of the term or period.
CHAPTER II 4. When there is no condition or term, the
Nature and Effect of Obligation obligation to deliver arises from the constitution,
creation or perfection of the obligation.
ARTICLE 1163.
“Every person obliged to give something is ARTICLE 1165.
also obliged to take care of it with the proper “When what is to be delivered is a
diligence of a good father of a family, unless the determinate thing, the creditor, in addition to the
law or the stipulation of the parties requires right granted him by Article 1170, may compel
another standard of care. (1094a)” the debtor to make the delivery.
“Ang bawat tao na obligado na magbigay ng If the thing is indeterminate or generic, he
isang bagay ay obligado rin na pangalagaan ito na may ask that the obligation be complied with at
may tamang pagkalinga tulad ng isang ama ng the expense of the debtor.
tahanan, maliban kung ang batas o ang stipulasyon If the obligor delays, or has promised to
ng mga partido ay nangangailangan ng iba pang deliver the same thing to two or more persons
pamantayan ng pagaalaga.” who do not have the same interest, he shall be
responsible for fortuitous event until he has
Discussion: effected the delivery.”
 “Kapag kung ano ang upang maihatid ay isang  Accessories – includes things that are united or
maliwanag na bagay, ang pinagkakautangan , bilang attached as ornaments to the principal thing, for
karagdagan sa kanan ipinagkaloob sa kanya ng the latter’s use or perfection (i.e. spare tire of a
Article 1170, maaaring pilitin ang may utang upang car, television antennas, cellphone chargers,
gawin ang paghahatid. moviehouse chairs, etc.)
Kung ang bagay ay hindi tiyak o generic, maaari Note: Although the delivery of determinate thing
niyang hilingin na ang obligasyon na nakasunod sa includes all its accessions and accessories, the
sa kapinsalaan ng ang may utang. parties in the contract may stipulate that certain
Kung ang obligor pagkaantala, o ipinangako accessions or accessories may not be included in the
upang maihatid ang parehong bagay sa dalawa o delivery. Both parties have the freedom to stipulate
higit pang mga tao na hindi magkaroon ng parehong such things.
interes, siya’y magiging responsable para sa di-
inaasahang pangyayari hanggang sa siya ay ARTICLE 1167.
maapektuhan ang paghahatid.” “If a person obliged to do something fails to
do it, the same shall be executed at his cost.
Yu Tek v. Gonzales This same rule shall be observed if he does it
Facts: A obligated himself to sell for a definite price in contravention of the tenor of the obligation.
a certain specified quantity of sugar of a given Furthermore, it may be decreed that what has
quality, without designating a particular lot. been poorly done be undone. (1098)”
Issue: In case the sugar is lost by a fortuitous event, “Kapag ang tao ay obligado na gumawa ng isang
who bears loss prior to delivery, the seller or the bagay ngunit hindi nya ito nagawa, ito ay
buyer? maipapataw sa kanya.
Held: In this case, the seller bears the loss because Itong panuntunan na ito ay dapat obserbahan
what was delivered was not a specific thing, but a kapag ito ay ginawa nya na kontra sa tenor ng
generic thing. And genus never perishers. obligasyon. Ito ay masasaad na kung ano ang
Incidentally, the sale here cannot be said to have napabayaang gawin ay hindi na dapat gawin.”
been already perfected because of the lack of
physical segregation from the rest of the sugar. *Coverage of Article
1. the obligor failed to fulfill a positive personal
ARTICLE 1166. obligation, that is, “to do” something;
“The obligation to give a determinate thing 2. he fulfilled the obligation but in contravention of
includes that of delivery of all its accessions and the agreement; and
accessories, even though they may not have been 3. there was fulfillment but the same is poor or
mentioned. (1097a)” inadequate.
“Kasama sa obligasyon na magbigay ng
determinadong bagay ang pagbibigay ng lahat ng ARTICLE 1168.
accessions at accessories nito kahit na hindi sila “When the obligation consists in not doing, and
nabanggit.” the obligor does what has been forbidden him, it
shall also be undone at his expense.”
Discussion: “Kapag ang obligasyon ay obligasyong hindi
 Accession – includes everything produced by a gawin ang isang bagay, at ginawa ng may
thing, as well as all incorporated or attached with obligasyon ang ipinagbabawal, ito ay kailangang
it, may it be natural or artificial ipasawalang bisa ng gumawa gamit ang sariling
 Accession discreta – right to the fruits gastos.”
 Accession continua – includes both accession
natural (i.e. alluvial deposits) and accession Discussion:
industrial (i.e. those built, planted or sowed on the This article pertains to negative personal
land of the landowner) obligation, or the obligation not to do. In addition to
the obligation of the obligor to undo the forbidden na ito sa tamang paraan. Kapag nagawa na ng isang
act of thing, he may also be made liable for piging ang kanyang obligasyon, ang balam ng isa ay
damages caused by doing that which was forbidden. magsisimula.

The delay contemplated in the article is legal

delay or default and not ordinary delay. To put an
ARTICLE 1169. obligor in default (or mora), there must be demand
Those obliged to deliver or to do something made upon him for the performance of the
incur in delay from the time the obligee obligation either judicially or extrajudicially.
judicially or extrajudicially demands from them
the fulfillment of their obligation. Demand is not necessary to place the obligor in
However, the demand by the creditor shall not default under the following circumstances:
be necessary in order that delay may exist: 1. When the law or obligation expressly declares;
(1) When the obligation or the law expressly so 2. When from the nature of the contract, it appears
declare; or that the time is of the essence and this is the
(2) When from the nature and the circumstances motivating factor in the establishment of the
of the obligation it appears that the designation contract;
of the time when the thing is to be delivered or 3. When demand would be useless;
the service is to be rendered was a controlling 4. When the debtor admits, he is in default.
motive for the establishment of the contract; or
(3) When demand would be useless, as when the Classes of Default
obligor has rendered it beyond his power to 1. Mora solvendi – the default on the part of the
perform. debtor/obligor;
In reciprocal obligations, neither party incurs 2. Mora accipiendi – the default on the part of the
in delay if the other does not comply or is not creditor/obligee;
ready to comply in a proper manner with what is 3. Compensatio morae – the default on the part of
incumbent upon him. From the moment one of both the debtor/obligor and creditor/obligee
the parties fulfills his obligation, delay by the which arises in reciprocal obligations the effect
other begins. (1100a) is the default of one party neutralizes the default
of the other.
Ang mga obligadong mag hatid o magsagawa ng
isang bagay ay mababalam mula sa oras na ang ARTICLE 1170.
obligee ay judicially o extra judicially na hiningi na “Those who in the performance of their
maisagawa o maihatid ang bagay na ito. obligations are guilty of fraud, negligence, or
Ngunit, ang paghingi o pag demand ng obligee o delay, and those who in any manner contravene
ng nagpautang ay hindi kinakailangan upang masabi the tenor thereof, are liable for damages. (1101)”
na mayroon nang balam sa mga sitwasyon na ito: “Ang mga nagsasagawa ng kanilang obligasyon
(1) Kapag nakasaad ito sa obligasyon o sa batas. na may kasalanan ng fraud, nagligence, o delay o
(2) Kapag ayon sa kallikasan ng obligasyon na ang balam at sa mga nagsasagawa ng kanilang
pag tatakda ng oras ay ang nag cocontrol na motibo obligasyon na hindi ayon sa napagkasunduan ay
ng pagtatala ng kontrata. mananagot sa mga danyos.”
(3) Kapag ang demand o paghingi ay walang bisa.
Katulad ng pagkakataon na naisakatuparan na ng Discussion
obligor ang bagay na ito ng higit pa sa kakayahan  Fraud – A false representation of a matter of fact
nyang maikumpleto o maisakatuparan ito. —whether by words or by conduct, by false or
Sa reciprocal obligations, wala sa sino mang misleading allegations, or by concealment of what
piging ay mababalam kung ang isa ay hindi should have been disclosed—that deceives and is
isasakatuparan o hindi handa na isagawa ang bagay
 intended to deceive another so that the individual ang mga probisyon ng Artikulo 1171 at 2201, talata
will act upon it to her or his legal injury. 2, ay dapat mag-apply.
 Negligence – Conduct that falls below the Kung ang batas o kontrata ay hindi ipinapahayag
standards of behavior established by law for the na kung saan ay na-obserbahan sa pagganap, na
protection of others against unreasonable risk of kung saan ay inaasahan ng isang mahusay na ama
harm. A person has acted negligently if he or she ng isang pamilya ay dapat atasan.
has departed from the conduct expected of a
reasonably prudent person acting under similar Far East Bank and Trust Co. v. Estrella O. Querimit
circumstances. Facts: Respondents filed a complaint against
petitioner bank and certain officials of the latter,
ARTICLE 1171. alleging that the they refused to allow her to
“Responsibility arising from fraud is withdraw her time deposit evidenced by four
demandable in all obligations. Any waiver of an certificates of deposit in the total amount of
action for future fraud is void.” $60,000. The trial court ordered petitioner-bank and
“Ang mga responsibilidad mula sa pandaraya ay its officials to allow respondent to withdraw her
maaaring hingin sa lahat ng obligasyon. Kahit time deposit plus accrued interests. The Court of
anong pagtalikdan sa aksyon sa pandaraya sa Appeals (CA) affirmed the decision of the trial
hinaharap ay walang bisa.” court with the modification that petitioner-bank was
solely liable because the latter has a personality
ARTICLE 1172. separate from its officers and stockholders. On
“Responsibility arising from negligence in the appeal, the Supreme Court affirmed the CA.
performance of every kind of obligation is also Held: Petitioner-bank failed to prove that it had
demandable, but such liability may be regulated already made payment considering that the subject
by the courts, according to the circumstances. certificates of deposit were still in the possession of
(1103)” the depositors. The principle that payment, in order
“Ang responsibilidad na sanhi ng kapabayaan ng to discharge a debt, must be made to someone
pag gawa ng bawat obligasyon ay demandable, authorized to receive it is applicable to the payment
subalit ang nasabing pananagutan ay regulated ng of certificates of deposit. Petitioner should, thus, not
hukuman na aayon sa pagkakataon.” have paid respondent’s husband or any third party
the amount of the time deposit without requiring the
ARTICLE 1173. surrender of the certificates of deposit. Laches
The fault or negligence of the obligor consists would also not defeat respondent’s claim as she did
in the omission of that diligence which is not withdraw her deposit because she relied on
required by the nature of the obligation and petitioner bank’s assurance that the interest would
corresponds with the circumstances of the accumulate annually even after maturity of the time
person, of the time and of the place. When deposit and she set aside the money therein for the
negligence shows bad faith, the provisions of retirement.
Articles 1171 and 2201, paragraph 2, shall apply.
If the law or contract does not state the ARTICLE 1174.
diligence which is to be observed in the Except in cases expressly specified by the law,
performance, that which is expected of a good or when it is otherwise declared by stipulation,
father of a family shall be required. or when the nature of the obligation requires the
Ang kasalanan o kapabayaan ng obligor ay assumption of risk, no person shall be
binubuo sa pagkukulang ng na sipag na kung saan responsible for those events which could not be
ay kinakailangan sa pamamagitan ng likas na foreseen, or which, though foreseen, were
katangian ng obligasyon at tumutugma sa mga inevitable. (1105a)
pangyayari ng mga tao, ng oras at ng lugar. Kapag Maliban sa mga kasong nasasaad sa batas, o ayon
kapabayaan ay nagpapakita masamang hangarin, sa mga napagusapan, o kung ang kalikasan ng
pananagutan ay nangangailangan ng nakikinitang hit by lightning, S is not liable if no demand was
panganib, walang sinumang tao ang may made by B. His obligation was extinguished. If the
pananagutan ukol sa mga pangyayaring hindi horse died after a demand was made by B, S is
inaasahan o kung ito man ay inaasahan ay hindi liable for damages because he is guilty of (legal)
mapipigilan o maiiwasan. delay. In this case the obligation of S to deliver the
horse is also extinguished but it is converted into
Discussion: monetary obligation to pay damages. (Art.1165). b)
This article is a continuance to ART. 1173. ART. the debtor has promised to deliver the same
1174 explains a fortuitous event that may have (specific)thing to two or more persons who do not
arisen during the event of doing the obligation. It is have the same interest. Example: If S sold and
an event which cannot be foreseen such as sudden promised to deliver.
coming of a storm which considered an Acts of God
or known as majeure or any other unexpected event ARTICLE 1175.
such as robbery, insurrection which is considered Usurious transactions shall be governed by
Acts of man. special laws.
Ang mga usurious transactions ay
The Philippine Civil Code distinguishes between papamamahalaan ng mga special laws.
two kinds of fortuitous events namely:
1. Ordinary fortuitous events or those which are Discussion:
common and which the contracting parties could What is Usury?
reasonably foresee e.g. rain. Usury, as defined in Black’s Law Dictionary, is
2. Extra-ordinary fortuitous events which are the charging of exorbitant and unconscionable rate
uncommon and which the contracting parties could of interest, higher than the interest allowed by law.
not have reasonably foreseen e.g. earthquake, fire, In layman’s term, it means loan sharking.
unusual flood.
Special Laws Regulating Usury:
To be declared that such circumstances are Central Bank Circular No. 905 which took effect
fortuitous events the following must be considered: on January 1, 1983 made the Usury Law legally
1. The event must be independent of the human will non-existent, as declared in the case of Liam Law vs
or the debtor Olympic Sawmill Co. 129 SCRA 439 (1984). An
2. The event could not be foreseen, or if foreseen, is excerpt from the case goes:
inevitable
3. The event must be of such a character as to The special laws that used to govern usury are:
render it impossible for the debtor to comply with 1. Act No. 2655 as amended by Act No. 3998
his obligation in a normal manner 2. Commonwealth Act No. 399
4. The debtor must be free from any participation 3. Republic Act No. 337 and
in, or the aggravation of, the injury to the creditor, 4. Presidential Decree No. 116, 858 and 1684
that is, there is no concurrent negligence on his part.
Rules governing interest rates in relation to usurious
In case of fortuitous event there are still rules to be transactions:
observed: When expressly specified by law.: a) the 1. CBC No. 905 does not repeal the Usury Law.
debtor is guilty of fraud, negligence, or delay, or Only a law can repeal a law. The circular merely
contravention of the tenor of the obligation. (Arts. suspended the law’s effectivity.
1170. 1165, par.3) 2. While the Usury Law ceiling on interest rates
was lifted by the CB Circular 905, nothing in the
Example: S is obliged to deliver a specific horse to said circular could possibly be read as granting
B on August 10. S did not deliver the horse on said carte blanche authority to lenders to raise interest
date. If, on August 11, the horse died because it was rates to levels which would either enslave their
 borrowers or lead to a hemorrhaging of their aksyon ng may utang para sa katulad na layunin,
assets (Almeda vs. CA, 256 SCRA 292 [1996]). maliban na lamang sa mga likas na karapatan sa
3. Increase of interest rate unilaterally without the isang tao; maaari rin nilang ikondena ang mga
consent of the debtor is illegal for it violates the aksyon na ginawa ng may utang upang lokohin sila.
principle of mutuality of contracts.
4. The determination of the illegality of a stipulated Discussion:
interest rate depends on the circumstances of the  Accion subrogatoria is an action where the
case. creditor hose claims had not been fully satisfied,
5. Jurisprudence shows that an interest rate of 12% may go after the debtors (third persons) of the
to 25% per annum is considered legal. defendant-debtor.
 Accion pauliana is an action where the creditor
ARTICLE 1176. files an action in court for the rescission of acts or
The receipt of the principal by the creditor contracts entered into by the debtor designed to
without reservation with respect to the interest, defraud the former.
shall give rise to the presumption that said
interest has been paid. ARTICLE 1178.
The receipt of a later installment of a debt Subject to the laws, all rights acquired in
without reservation as to prior installments, shall virtue of an obligation are transmissible, if there
likewise raise the presumption that such has been no stipulation to the contrary. (1112)
installments have been paid. (1110a) Naaayon sa batas, lahat ng karapatang nakamtan
Ang pagtanggap ng prinsipal ng pinagkautangan sa pamamagitan ng isang obligasyon ang maaaring
nang walang reserbasyon sa interest ay magbibigay ilipat, kung walang nakasaad na taliwas dito.
ng pag-aakala na na ang nabanggit na interes ay
bayad na. Discussion:
Ang pagtanggap ng pabaha-bahagyang Rights that do not fall under the exceptions are
kabayaran nang walang reserbasyon sa naunang considered assignable or alienable, but as a general
installment ay magbibigay rin ng pag-aakala na ang rule, rights are transmissible except for the
installment ay bayad na. following:
a.) those not transmissible by their nature like
Discussion: purely personal rights;
A receipt issued by the lessor dated June 1, 1904 b.) those not transmissible by provision of law.
to the lessee covering the rent for the month, shows
that the rent for the prior month (May) had already
been paid. The presumption is rebuttal and not
conclusive.

ARTICLE 1177.
The creditors, after having pursued the
property in possession of the debtor to satisfy
their claims, may exercise all the rights and
bring all the actions of the latter for the same
purpose, save those which are inherent in his
person; they may also impugn the acts which the
debtor may have done to defraud them. (1111)
Ang mga pinagkakautangan, pagkatapos
ipaglaban ang kanyang pagmamay-ari na nasa may
utang upang ma-satisfy ang claims nito ay maaaring
gamitin ang kanyang karapatan na dalhin lahat ng