NATURE AND EFFECTS OF OBLIGATION

(Articles 1163-1178)

ACCOMPANYING OBLIGATIONS
I. OBLIGATION TO GIVEReal Obligation
Difference from OBLIGATION TO DO
Obligation to give there is a thing or object that s to be transferred
Obligation to do there is no object, the act involved is act of doing
Specific performance, a suit to compel performance of the obligation in court, is an available legal remedy in Obligation to
Give but not in Obligation to Do

OBJECT of Obligation to Give

GENERIC or INDETERMINATE SPECIFIC or DETERMINATE

Refers to class or genus Refers to a definite member of a class or genus
Cannot be singled out with particularity Can be singled out with particularity
Cannot be destroyed nor lost (Article 1263) Can be destroyed or lost
Genus Nunquam Perit: generic thing neverIrreplaceable
perishes
Can be replaced

Related Obligations of OBLIGATION TO GIVE SPECIFIC OBJECT

To TAKE CARE or to PRESERVE the object prior to its delivery. (Article 1163)
General Rule the proper diligence of a good father of a family
Exception:
1. If the law so provides (ex: extraordinary diligence of a very cautious person for common carrier)
2. If the parties stipulate another standard of care (may be higher or lower standard care but never absolute
exemption)
Rules and Limitations:
1. The diligence required depends upon the nature of the obligation and the circumstances of person, time,
and place.
2. If the diligence required is not observed due to fortuitous event, the obligor is not liable (Article 1174)

To deliver its FRUITS from the time the obligation to deliver the principal thing arises. (Article 1164)
Meaning of Fruit any product of a thing or or of a juridical relation
Kinds of Fruit
NATURAL FRUITS INDUSTRIAL FRUITS CIVIL FRUITS
Spontaneous products of the soil Those produced by lands of any kind Those derived by virtue of juridical
and the young and other products through cultivation or labor. relation.
of animals.

Examples: Examples: Examples:

Wild trees Grafted trees planted Rentals of boarding house
Eggs of chicken Cultured fishes Interest of loan
Young of animals produced Young of animals produced Dividends of stocks
through normal breeding through artificial fishing

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Time when the obligation to deliver arises

General Rule from the perfection of contract
Qualifications:
 1. If subject to a condition or a period from the time of the fulfillment of condition or expiration of
the period
2. If a contract of sale from the perfection of contract
3. If obligation arising from law, quasi-contract, delict, or quasi-delict determined by specific
provisions of law applicable

Concept of PERSONAL RIGHT and REAL RIGHT

PERSONAL RIGHT REAL RIGHT
There is a definite active subject and definite There is a definite active subject but no
passive subject passive subject
The right acquired is enforceable against a The right acquired is enforceable against the
particular person (against a definite passive whole world (against all persons)
subject) To give
To do

To deliver all its ACCESSIONS and ACCESSORIES even though they may not have been mentioned. (Article 1166)
ACCESSIONS ACCESSORIES
Fruits of a thing or additions to or improvements Things joined to another as an ornament to make it
upon a thing. complete.

Examples: Examples:
A house on a land Key to a house
Air conditioner of a car Ink of a ball pen
Cover of a ball pen Roof of a house

To deliver the THING itself.

Ownership and other real rights over property acquired and transmitted in consequence of certain contracts by
tradition (Article 712) or delivery. Mere agreements does not affect transfer of ownership.

To answer for damages in the event of FRAUD, NEGLIGENCE, DELAY, or CONTRAVENTION in any manner of
the tenor of the obligation. (Article 1170)

Related Obligations of OBLIGATION TO GIVE GENERIC OBJECT

To deliver a thing which is of the QUALITY intended by the parties taking into consideration the purpose of the
obligation and other circumstances.
Bear the EXPENSES of giving if he fails to perform his obligation to give.
To answer for damages in the event of FRAUD, NEGLIGENCE, DELAY, or CONTRAVENTION in any manner of
the tenor of the obligation. (Article 1170)

II. OBLIGATION TO DOPositive Personal Obligation

To do exactly what was agreed upon.
To bear the expenses of doing the obligation if he fails to perform. (Article 1167)
To undo what was poorly done. (Article 1167)
To pay damages in case of fraud, negligence, delay, or contravention of the tenor of the obligation. (Article 1170)

III. OBLIGATION NOT TO DONegative Personal Obligation

To abstain from doing the act prohibited to be done.
To pay damages in case of fraud, negligence, delay, or contravention of the tenor of the obligation. (Article 1170)

LIABILITY TO PAY DAMAGES

I. FRAUD
Meaning
the deliberate or intentional evasion of the normal fulfillment of an obligation
the voluntary and deliberate act to evade the fulfillment of an obligation
 Kinds
As to MANNER of commission
a) Incidental Fraud (Dolo Incidente) fraud committed in the performance of the obligation, performed after the
contract was made
Remedy: to recover damages
b) Causal Fraud (Dolo Causante) fraud committed in the execution of a contractual obligation (Article 1338).
This kind of fraud vitiates consent.
Remedy: to annul contract and recover damages

As to TIME of commission
a) Past Fraud fraud which already happened
b) Future Fraud fraud which is yet to happen
Waiver for action of future fraud is void (Article 1171)

Difference from negligence

FRAUD
Intentional and malicious
Waiver of action for future fraud is void
(Article 1171)
Must be clear, cannot be presumed
Liability arising from fraud cannot be
reduced
NEGLIGENCE
Unintentional and without malice
Waiver of action for future negligence is
valid (Article 1171)
Presumed in case of breach of contract
Liability arising from negligence can be
reduced

General Principles and Concepts

Responsibility arising from fraud is demandable in all kinds of obligations
Fraud involves deliberate intent and dishonesty

II. NEGLIGENCE
Meaning
any voluntary act or omission, there being no malice which prevents the normal fulfillment of any obligation
the omission of that diligence which is required by the nature of the obligation and corresponds with the
circumstances of the person, of the time, and of the place (Article 1173)

Kinds
General Principles and Concepts

III. LEGAL DELAY

IV. FORTUITOUS EVENT
Meaning
Kinds
General Principles and Concepts