.

Nature and Effect of Obligations

· Specific v. Generic Thing
1. Specific is designated or physically segregated from
others of the same class.
2. Generic refers to a class or genus and cannot be
determined with particularity.

· Duties of debtor in delivery of generic thing

a. To delivery a thing which must neither be of superior
nor inferior quality (1246)
b. To pay damages in case of breach (1170)

· Duties of debtor in delivery of specific thing

a. To deliver the thing which he has obligated himself to give
b. To take care of the thing with the proper diligence of a
good father of a family
- The ordinary care that an average or reasonably prudent
- person exercises over his property

Another standard of c are may be required by law or by stipulation of the parties

3. To deliver all the accessions and accessories
4. To pay damages in case of breach

Remedies of Creditors in breach of obligation

1. To Give Determinate Thing

a. To compel specific performance
b. To recover damages
2. To Give Indeterminate Thing
a. To ask for performance of the obligation
b. To ask that obligation be complied with by
another at expense of debtor
c. To recover damages
3. To Do
a. To have the obligation performed at debtor’s expense
b. To recover damages
4. Not to Do
a. Undone at his expense
b. To recover damages

Rules on Fruits

1. Kinds of fruits
a. Natural – product of the soil, young and other products
 of animals
b. Industrial – produced thru cultivation or labor
c. Civil – derived by juridical relations
2. Creditor has rights to the fruits from the time the obligation
to deliver arises

3. Real rights acquired only when delivered to him

a. Real rights - right over a specific thing without and passive
subject, directed against the whole word.
b. Personal rights – right to demand fromanother
debtor the fulfillment of the latter’s obligation.

Accessions and accessories

Accessions – fruits of a thing or additions to or improvement upon a thing

Accessories – joined to or included with the principal thing for better use or completion.

1. Even if not mentioned, accessories follow the principal

2. But obligation to deliver accessions or accessories does not include the principal

Legal Delay

1. From the time oblige judicially or extra- judicially demand fulfillment; not
mere notice
2. No demand from creditor necessary in following cases:
a. When obligation or law expressly so declares
b. Time is of the essence (controlling motive)
c . When demand would be useless
3. In reciprocal obligation, from the moment oneparty fulfills
his obligation, delay by the other begins.
4. Kinds of Delay
a. Mora solvendi – delay on the part of debtor
b. Mora acccipiendi – delay of creditor
c. Compensatio more – delay in reciprocal obligation
5. Effects of Delay
a. Liable for interest and damages
b. Liable even for fortuitous event when the obligation is to
delivery a determinate thing

Fortuitous Events

1.1. Any event which cannot be foreseen or which though foreseen

is inevitable, independent of the will or from aggravation of
 the debtor, render impossible the fulfillment of obligation
2.2. No person shall be responsible for fortuitous events,
except:
a.a. Where expressly specified by law or stipulated in contract
b.b. When nature of the obligation requires assumption of risk
c.c. When debtor incurs delay
d.d. When debtor promises to deliver same thing to two or
more persons
e.e. When obligation to deliver arises from criminal offense
f.f. When obligation is generic

Fraud (deceit or dolo) Deliberate or intentional evasion of

the normal fulfillment of an obligation;
1.1. Dolo incidente (Incidental Fraud) – committed in the
performance of pre-existing obligation, remedy is damages
2.2. Dolo causante (Causal Fraud) – Fraud employed at the time
of the execution of a contract in order to secure consent,
remedy is annulment bec of vitiation of consent
3.3. Demandable in all obligations
4.4. Waiver of future fraud is void

Negligence (culpa) Omission of that diligence whichis required by the nature

of the obligation, but no malice

1.1. Culpa contractual – Negligence in the performance of contractual obligation,

a. Pre-existing contract
b. Liable for damages based on breach of contract
c. Proof of contract and breach is enough for recovery of damage
d. Negligence of employee conclusive presumption of employer’s negligence
e. Proof of due diligence in the selection of employee not a defense

2. Culpa aquiliana – Negligence between parties not so related

by any pre-existing contract,
a. Obligation for damages based on quasi delict
b. No pre existing contract
c. Negligence must be proved for recovery of damage
d. Negligence of employee prima facie presumption of
employer’s negligence
e. Due diligence in the selection and supervision of employee
is a valid defense
3. Can be regulated by the Court depending on circumstance
4. Waiver of future negligence allowed

Presumptions
 1. Receipt of principal without reservation as to
2. Receipt of later installment of debt without reservation
of prior ones = presumption that prior ones paid

Remedies to satisfy claim

1. Exhaust property of debtor
2. Subrogated to rights and actions of debtors,
except those inherent to person
3. Impugn all of acts by debtor done to defraud
Creditor