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Chapter 2

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CHAPTER 2

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.

Proper Diligence of a Good Father of a Family = Ordinary care (Bonum Pater Familia)
Law or the stipulation of the parties requires another standard of care = will prevail if it is
given within the said agreement of the two parties or persons.

Specific or Determinate Thing = pointed out with Particularity


Generic or Indeterminate Thing = not pointed out with Particularity

Duties of a Debtor in Obligation to Give a Determinate Thing.


1. Preserve the thing
a. Bonum Pater Familia
b. Another Standard of Care
c. Factors to be Considered = nature of the obligation
d. Reason for debtor’s Obligation = exercise diligence
2. Deliver the Fruits of the thing.
3. Deliver the Accessions and Accessories
4. Deliver the Thing Itself
5. Answer for Damages in case of Non-fulfillment or breach.

Art. 1164. The Creditor has a right to the fruits of the thing from the time the obligation to
deliver it arises. However, he shall acquire no real right over it until the same has been
delivered to him. (1095).

Kinds of Fruits:
1. Natural Fruits = spontaneous products
2. Industrial Fruits = cultivation or labor
3. Civil Fruits = juridical relation

Kinds of Rights:
1. Personal right = Power to demand (Definite Active and Passive Subject)
2. Real Right = Right or interest over a specific thing (Definite Active Subject)

Article 1165. When what is to be delivered is a determinate things, the creditor, in


addition to the right granted him by Article 1170, may compel the debtor to make the
delivery.

If the thing is indeterminate or generic, he may ask that the obligation be complied
with at the expense of the debtor.
If the obligor delays, or has promised to deliver the same thing to two or more
persons who do not have the same interest, he shall be responsible for fortuitous
event until he has effected the delivery.
Remedies of a Creditor In Real Obligation
1. In a Specific Real Obligation
a. Demand specific performance or fulfillment
b. Demand rescission or cancellation (Art. 1385 - to give back or return what both
parties have received)
c. Demand payment of damages only.
2. Generic Real Obligation
a. Third Person

Article 1166. The Obligation to give a Determinate thing includes that of delivering all its
accessions and accessories, even though they may not have been mentioned. (1097a)

1. Accessions = additions or improvements


2. Accessories = joined to or included for the latter’s completion.

Article 1167. If a Person Obliged to do something fails to do it, the same shall be executed at
his cost.
This same rule shall be observed if he does it in contravention of the tenor of the
obligation. Furthermore, it may be decreed that what has been poorly done be undone.
(1098).

1. Debtor fails to perform an obligation;


2. Debtor performs an obligation to do but contrary to the terms thereof; or
3. Debtor performs an obligation to do but in poor manner.

Remedies of Creditor in Positive Personal Obligation.


1. If the debtor fails to comply with his obligation with his obligation to do, the creditor has the
right.
a. Have the obligation performed by himself, or by another, unless personal
considerations are involved, at the debtor’s expense; and
b. To recover damages (art. 1170).
2. Obligation is done in contravention of the terms of the same or is poorly done = undone if
it is possible to undo what was done.

Article 1168. When the obligation consists in not doing, and the obligor does what has been
forbidden him, it shall also be undone at his expense. (1099a).

Obligation is fulfilled from the time the the act is not done.
No specific performance.
Debtor cannot be guilty of delay.
Article 1169. Those obliged to deliver or to do something incur in delay from the time the
obligee judicially or extrajudicially demands 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; Or

(2) When from the nature and the circumstances of the obligations it appears that the
designation of the time when the things is to be delivered or the service is to be rendered
was a controlling motive for the establishment of the contract; or

(3) When demand would be useless, as when the obligor has rendered it beyond his power
to perform.

In reciprocal obligation, neither party incurs in delay if the other does not comply or is not
ready to comply in a proper manner with what is incumbent upon him. From the moment one
of the parties fulfills his obligation, delay by other begins.(1100a)

1. Ordinary Delay = Failure to perform an obligation on time


2. Legal Delay (default or mora) = Failure to perform an obligation on time which failure
constitutes a breach of the obligation.

Kinds of Delay:
1. Mora Solvendi = delay on the debtor
2. Mora Accipiendi = delay on the creditor
3. Compensatio Morae = delay of the obligors in reciprocal obligations

Requisites of Delay or Default by the Debtor


1. Failure of the debtor to perform his positive obligation on the date agreed upon
2. Demand made by the creditor upon the debtor to comply with his obligation which demand
may be either judicial ir extrajudicial; and
3. Failure of the debtor to comply with such demand

Effects of Delay
1. Mora Solvendi
a. Debtor is guilty of breach or violation of the obligation
b. He is Liable to the creditor for interest or damages.
c. He is Liable even for a fortuitous event when the obligation is to deliver a determinate
thing.
2. Mora Accipiendi
a. Creditor is guilty of breach of obligation
b. He is Liable for damages suffered
c. He bears the risk of loss of the thing due
d. Where the obligation is to pay money, the debtor is not liable for interest from the
time of creditor’s delay
e. Debtor may release himself from the obligation by the consignation or deposit in
court of the thing or sum due.
3. Compensatio Morae - Delay of the obligor cancels the delay of the obligee and vice versa.

When Demand is not necessary to put debtor in delay.


G.R. Delay by the debtor begins only from the moment a demand, judicial or extra-judicial,
for the fulfillment of the former’s obligation is made by the creditor. Without such amount, the
effect of default will not arise. The exceptions are mentioned below
1. When the Obligation so Provides
2. When the Law so Provides
3. When time is of the essence
4. When Demand would be Useless
5. When there is performance by a party in reciprocal obligations

Article 1170. Those who in the performance of their obligations are guilty of fraud,
negligence, or delay and those who in any manner contravene the tenor thereof are liable for
damages. (1101).

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