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Obligations and Contracts the passengers transported by them, according to

Assignment II all the circumstances of each case.


Important Provisions
Such extraordinary diligence in the vigilance over
the goods is further expressed in articles 1734,
Article 1163. Every person obliged to give 1735, and 1745, Nos. 5, 6, and 7, while the
something is also obliged to take care of it with extraordinary diligence for the safety of the
the proper diligence of a good father of a family, passengers is further set forth in articles 1755 and
1756.
unless the law or the stipulation of the parties
requires another standard of care. (1094a)
SUBSECTION 2. Vigilance Over Goods

Article 1734. Common carriers are responsible


Article 1244. The debtor of a thing cannot for the loss, destruction, or deterioration of the
compel the creditor to receive a different one, goods, unless the same is due to any of the
although the latter may be of the same value as, following causes only:
or more valuable than that which is due.
(1) Flood, storm, earthquake, lightning,
or other natural disaster or calamity;
Article 1246. When the obligation consists in the
delivery of an indeterminate or generic thing, (2) Act of the public enemy in war,
whose quality and circumstances have not been whether international or civil;
stated, the creditor cannot demand a thing of
(3) Act or omission of the shipper or
superior quality. Neither can the debtor deliver a
owner of the goods;
thing of inferior quality. The purpose of the
obligation and other circumstances shall be taken
(4) The character of the goods or defects
into consideration. (1167a) in the packing or in the containers;

(5) Order or act of competent public


Article 1458. By the contract of sale one of the authority
contracting parties obligates himself to transfer
the ownership and to deliver a determinate thing, SUBSECTION 3. Safety of Passengers
and the other to pay therefor a price certain in
money or its equivalent. Article 1755. A common carrier is bound to carry
the passengers safely as far as human care and
A contract of sale may be absolute or conditional. foresight can provide, using the utmost diligence
(1445a) of very cautious persons, with a due regard for all
the circumstances.
Article 1459. The thing must be licit and the
vendor must have a right to transfer the ownership Article 1164. The creditor has a right to the fruits
thereof at the time it is delivered. (n) of the thing from the time the obligation to deliver
it arises. However, he shall acquire no real right
Article 1460. A thing is determinate when it is over it until the same has been delivered to him.
particularly designated or physical segregated (1095)
from all others of the same class.
Article 1166. The obligation to give a
The requisite that a thing be determinate is determinate thing includes that of delivering all
satisfied if at the time the contract is entered into, its accessions and accessories, even though they
the thing is capable of being made determinate may not have been mentioned. (1097a)
without the necessity of a new or further
agreement between the parties. (n) Article 440. The ownership of property gives the
right by accession to everything which is
Article 1461. Things having a potential existence produced thereby, or which is incorporated or
may be the object of the contract of sale. attached thereto, either naturally or artificially.
(353)
The efficacy of the sale of a mere hope or
expectancy is deemed subject to the condition Article 441. To the owner belongs:
that the thing will come into existence.
(1) The natural fruits;
The sale of a vain hope or expectancy is void. (n)
(2) The industrial fruits;
Article 1733. Common carriers, from the nature
of their business and for reasons of public policy, (3) The civil fruits. (354)
are bound to observe extraordinary diligence in
the vigilance over the goods and for the safety of
Article 442. Natural fruits are the spontaneous If the thing is indeterminate or generic, he may
products of the soil, and the young and other ask that the obligation be complied with at the
products of animals. expense of the debtor.

Industrial fruits are those produced by lands of If the obligor delays, or has promised to deliver
any kind through cultivation or labor. the same thing to two or more persons who do not
have the same interest, he shall be responsible for
Civil fruits are the rents of buildings, the price of any fortuitous event until he has effected the
leases of lands and other property and the amount delivery. (1096)
of perpetual or life annuities or other similar
income. (355a) Article 1167. If a person obliged to do something
fails to do it, the same shall be executed at his
Article 1475. The contract of sale is perfected at cost.
the moment there is a meeting of minds upon the
thing which is the object of the contract and upon This same rule shall be observed if he does it in
the price. contravention of the tenor of the obligation.
Furthermore, it may be decreed that what has
From that moment, the parties may reciprocally been poorly done be undone. (1098)
demand performance, subject to the provisions of
the law governing the form of contracts. (1450a) Article 1168. When the obligation consists in not
doing, and the obligor does what has been
Article 1537. The vendor is bound to deliver the forbidden him, it shall also be undone at his
thing sold and its accessions and accessories in expense. (1099a)
the condition in which they were upon the
perfection of the contract. Article 1170. Those who in the performance of
their obligations are guilty of fraud, negligence,
All the fruits shall pertain to the vendee from the or delay, and those who in any manner contravene
day on which the contract was perfected. (1468a) the tenor thereof, are liable for damages. (1101)

Article 1495. The vendor is bound to transfer the Article 1169. Those obliged to deliver or to do
ownership of and deliver, as well as warrant the something incur in delay from the time the
thing which is the object of the sale. (1461a) obligee judicially or extrajudicially demands
from them the fulfillment of their obligation.
Article 1496. The ownership of the thing sold is
acquired by the vendee from the moment it is However, the demand by the creditor shall not be
delivered to him in any of the ways specified in necessary in order that delay may exist:
articles 1497 to 1501, or in any other manner
signifying an agreement that the possession is (1) When the obligation or the law
transferred from the vendor to the vendee. (n) expressly so declare; or

SECTION 2 (2) When from the nature and the


Delivery of the Thing Sold circumstances of the obligation it appears
that the designation of the time when the
Article 1497. The thing sold shall be understood thing is to be delivered or the service is to
as delivered, when it is placed in the control and be rendered was a controlling motive for
possession of the vendee. (1462a) the establishment of the contract; or

Article 1501. With respect to incorporeal (3) When demand would be useless, as
property, the provisions of the first paragraph of when the obligor has rendered it beyond
article 1498 shall govern. In any other case his power to perform.
wherein said provisions are not applicable, the
placing of the titles of ownership in the In reciprocal obligations, neither party incurs in
possession of the vendee or the use by the vendee delay if the other does not comply or is not ready
of his rights, with the vendor's consent, shall be to comply in a proper manner with what is
understood as a delivery. (1464) incumbent upon him. From the moment one of
the parties fulfills his obligation, delay by the
other begins. (1100a)

Article 1171. Responsibility arising from fraud is


demandable in all obligations. Any waiver of an
Article 1165. When what is to be delivered is a action for future fraud is void. (1102a)
determinate thing, the creditor, in addition to the
right granted him by article 1170, may compel the Article 1172. Responsibility arising from
debtor to make the delivery. negligence in the performance of every kind of
obligation is also demandable, but such liability
may be regulated by the courts, according to the latter refused without justification to accept it.
circumstances. (1103) (1185)

Article 1173. The fault or negligence of the Article 1942. The bailee is liable for the loss of
obligor consists in the omission of that diligence the thing, even if it should be through a fortuitous
which is required by the nature of the obligation event:
and corresponds with the circumstances of the
persons, of the time and of the place. When (1) If he devotes the thing to any purpose
negligence shows bad faith, the provisions of different from that for which it has been
articles 1171 and 2201, paragraph 2, shall apply. loaned;

If the law or contract does not state the diligence (2) If he keeps it longer than the period
which is to be observed in the performance, that stipulated, or after the accomplishment of
which is expected of a good father of a family the use for which the commodatum has
shall be required. (1104a) been constituted;

Article 2176. Whoever by act or omission causes (3) If the thing loaned has been delivered
damage to another, there being fault or with appraisal of its value, unless there is
negligence, is obliged to pay for the damage done. a stipulation exempting the bailee from
Such fault or negligence, if there is no pre- responsibility in case of a fortuitous
existing contractual relation between the parties, event;
is called a quasi-delict and is governed by the
provisions of this Chapter. (1902a) (4) If he lends or leases the thing to a third
person, who is not a member of his
household;

Article 1174. Except in cases expressly specified (5) If, being able to save either the thing
by the law, or when it is otherwise declared by borrowed or his own thing, he chose to
stipulation, or when the nature of the obligation save the latter. (1744a and 1745)
requires the assumption of risk, no person shall be
responsible for those events which could not be Article 2147. The officious manager shall be
foreseen, or which, though foreseen, were liable for any fortuitous event:
inevitable. (1105a)
(1) If he undertakes risky operations
which the owner was not accustomed to
embark upon;
Article 1165. When what is to be delivered is a
determinate thing, the creditor, in addition to the (2) If he has preferred his own interest to
right granted him by article 1170, may compel the that of the owner;
debtor to make the delivery.
(3) If he fails to return the property or
If the thing is indeterminate or generic, he may business after demand by the owner;
ask that the obligation be complied with at the
expense of the debtor. (4) If he assumed the management in bad
faith. (1891a)
If the obligor delays, or has promised to deliver
the same thing to two or more persons who do not Article 2148. Except when the management was
have the same interest, he shall be responsible for assumed to save property or business from
any fortuitous event until he has effected the imminent danger, the officious manager shall be
delivery. (1096) liable for fortuitous events:

Article 552. A possessor in good faith shall not (1) If he is manifestly unfit to carry on the
be liable for the deterioration or loss of the thing management;
possessed, except in cases in which it is proved
that he has acted with fraudulent intent or
(2) If by his intervention he prevented a
negligence, after the judicial summons.
more competent person from taking up
the management. (n)
A possessor in bad faith shall be liable for
deterioration or loss in every case, even if caused
Article 2159. Whoever in bad faith accepts an
by a fortuitous event. (457a)
undue payment, shall pay legal interest if a sum
of money is involved, or shall be liable for fruits
Article 1268. When the debt of a thing certain received or which should have been received if
and determinate proceeds from a criminal the thing produces fruits.
offense, the debtor shall not be exempted from the
payment of its price, whatever may be the cause
He shall furthermore be answerable for any loss
for the loss, unless the thing having been offered
or impairment of the thing from any cause, and
by him to the person who should receive it, the
for damages to the person who delivered the
thing, until it is recovered. (1896a)

Article 1175. Usurious transactions shall be


governed by special laws. (n)

Article 1176. The receipt of the principal by the


creditor without reservation with respect to the
interest, shall give rise to the presumption that
said interest has been paid.

The receipt of a later installment of a debt without


reservation as to prior installments, shall likewise
raise the presumption that such installments have
been paid. (1110a)

Article 1235. When the obligee accepts the


performance, knowing its incompleteness or
irregularity, and without expressing any protest or
objection, the obligation is deemed fully
complied with. (n)

Article 1956. No interest shall be due unless it


has been expressly stipulated in writing. (1755a)

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)

Article 1178. Subject to the laws, all rights


acquired in virtue of an obligation are
transmissible, if there has been no stipulation to
the contrary. (1112)

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