Chapter 2: Nature and Effect of Obligations

Specific or Determinate
Duties of Debtor in Obligation to Give a Determinate
- a thing particularly designated or
Thing
physically segregated from other of 1. Preserve or take care of the thing
the same class. a. Diligence of a good father of a
Generic or Indeterminate family
- class or genus to which pertains and b. Another standard of care (if the
cannot be pointed out with Law requires)
particularity. c. Factors to be considered
Main Difference between Specific and d. Reason for debtor’s obligation
Generic 2. Deliver the fruits of the thing
SPECIFIC GENERIC 3. Deliver the accessions and
 a determinate  a generic thing accessories
thing is is identified only 4. Deliver the thing itself
identified by its by its specie. 5. Answer for damages in case of non-
individuality.  the debtor can fulfillment or breach
 the debtor give anything of Duties of Debtor in Obligation to Give a Generate Thing
cannot replace the same class 1. To deliver a thing which is of the
it with another as long as it is quality intended by the parties
although the of the same taking into consideration the
latter of the kind. purpose of the obligation and other
same kind and circumstances.
quality without 2. To be liable for damages in case of a
the consent of fraud, negligence or delay, in the
others. performance of his obligation, or
contravention of the tenor thereof.

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
stipulation of the parties requires another standard of care.

Different Kinds of Fruit (Civil Code) arises upon the fulfillment of the
1. Natural Fruits – the spontaneous condition or arrival of the term.
products of the soil, and the young 3. In a contract of sale, the obligation
and other products to animals. arises from the perfection of the
2. Industrial Fruits – those produced contract even if the obligation is
by lands of any kind through subject to a suspensive condition or
cultivation or labor. a suspensive period where the price
3. Civil Fruits – derived by virtue of a has been paid.
juridical relation or contracts. 4. In obligations arising from law, quasi-
When Obligation to Deliver Fruit Arises contracts, delicts, and quasi-delicts,
1. Generally, the obligation to deliver the time of performance is
the thing due and, consequently, the determined by the specific
fruits thereof, if any, arises from the provisions of the law applicable.
time of the “perfection of the Types of Rights of Creditor over the Thing and its
contract.” Fruits
refers to the a. Real Right – the power belonging to
birth of the a person over a specific thing,
contract or to without a passive subject individually
the meeting of determined, against whom such
the minds right may be personally exercised.
2. If the obligation between
is subject theto a  directed against the whole
suspensive condition or
parties. period, it world.
 b. Personal right – the power belonging c. Action for damages
to one person to demand of another, 2. Generic Real Obligation – can be
as a definite passive subject, the performed by a third person since
fulfillment of a prestation to give, to the object is expressed only
do or not to do. according to its family or genus.
 binding or enforceable Rescission in Reciprocal Obligations
against a particular person. Reciprocal Obligation – a type of
obligation which arises from the
Ownership Acquired by Delivery same cause and in which each party
- ownership and other real rights over is a debtor and creditor of the other,
property are acquired and such that the obligation of one is
transmitted in consequence of dependent upon the obligation of the
certain contracts by tradition or other.
delivery.
“He shall acquire no real right over it Ordinary Delay Legal Delay/
until the same has been delivered to Default (Mora)
him” – the creditor does not become the failure to perform failure to perform
owner until the specific thing has been an obligation on an obligation on
delivered to him. time time which
constitutes breach
Article 1164. The creditor has a right of the obligation.
to the fruits of the things from the
time the obligation to deliver it arises. Article 1165. When what is to be
However, he shall acquire no real delivered is a determinate thing, the
right over it until the same has been creditor, in addition to the right granted
delivered to him. him by Article 1170, may compel the
Remedies of Creditor in Real Obligation
debtor to make the delivery.
1. Specific Real Obligation
If the thing is indeterminate or generic,
a. Action for specific performance
he may ask that the obligation be
with damages
complied with at the expense of the
b. Action to rescind the obligation
debtor.
with damages
If the obligor delays, or has promised to
deliver the same thing to two or more
persons who do not have the same
- the fruits
interest, of a thing
he shall or additions to
be responsible foror
Article 1166. The
improvements upon a thing
fortuitous event until he has effected the (the
obligation to give a
principal).
delivery.
determinate thing includes
Accessories
that of delivering all its
- the things joined to or included with
accessions and
the principal thing for the latter’s
accessories, even though
embellishment, better use, or
they may not have been
Accessions completion.
mentioned.

Remedies of Creditor in Positive Personal that it can be undone if it is still

Obligation possible to undo what was done.
1. If the debtor fails to do his
obligation, the creditor has the right:
a. to do the obligation himself or by
another, unless personal
considerations are involved, at
the debtor’s expense Personal by a Third Person
b. to recover damages. 1. Compelling performance by
2. If the obligation is done but at the debtor prohibited
expense of violating a law or is  a personal obligation to do,
poorly done, it is may be ordered like a real obligation to
deliver a generic thing, can
 be performed by a third  the personal qualifications of
person. While the debtor can the debtor are the
be compelled to make the determining motive for the
delivery of a specific thing, a obligation contracted, the
specific performance cannot performance of the same by
be ordered in a personal another would be impossible
obligation to do. or would result to be so
2. Indemnification of creditor for different that the obligation
damages could not be considered
performed.
.

Remedies of Negative in Positive Personal Obligation

Article 1169. Those obliged to deliver or to do something incur in delay from the time the
oblige judicially or extra judicially demand from them the fulfillment of their obligation.
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
2. When from the nature and the circumstances of the obligation it appears that the
designation of the tome when the thing is to be delivered or the service is to be
rendered was a controlling motive for the establishment of the contract.
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 in
a proper manner with what is incumbent upon him. From the moment one of the
parties fulfills his obligation, delay by the other begins.
wounded feelings, moral shock,
social humiliation, and similar injury.
Grounds for Liability to Pay Damages c. Nominal Damages – damages to
1. Fraud vindicate a right.
2. Negligence d. Temperate or Moderate Damages –
3. Delay more than nominal but less than
4. Contravention of the tenor of the compensatory damages, but may be
obligation recovered if the court finds that
some pecuniary loss has been
Damages suffered but its amount cannot, from
DAMAGES INJURY the nature of the case, proved with
the harm done and The wrongful, certainty.
the sum of money unlawful, or e. Liquidated Damages – those agreed
that may be tortuous act which upon by the parties to a contract, to
recovered in causes loss or harm
be paid in case of breach.
reparation for the to another.
f. Exemplary or corrective damages –
harm done.
Legal wrong to be imposed by way of example of
redressed. correction for public good, in
additions to the moral, temperate,
KINDS OF DAMAGES liquidated, or compensatory
a. Actual or Compensatory Damages – damages.
pecuniary loss (such as loss in
business or profession) that may be PROOF OF PECUNIARY LOSS
recovered. a. Actual Damages – proof is required
- includes the value of the unless provided by law or stipulation.
loss suffered and profits b. Other Damages -
not realized.
b. Moral Damages – physical suffering,
mental anguish, fright, serious
anxiety, besmirched reputation,