Oblicon Personal Notes Jan 12 2021

NATURE AND EFFECTS OF OBLIGATION
OBGLIGEE/ CREDITOR
OBLIGOR/DEBTOR
KINDS OF PRESTATION\
OBLIGATION TO GIVE
A. A SPECIFIC THING
B. A GENERIC THING
SPECIFIC OR DETERMINATE THING – a thing is determinate when it is
particularly designated or physically segregated from all other of the same
class.
GENERIC OR INDETERMINTATE THING:
a. A thing is generic or indeterminate in the sense that it is designated
merely by the class or genus without any particular designation or
physical segregation from all others of the same class
b. The loss or destruction of anything of the same kind even without the
debtor’s fault and before he has incurred delay will not have the effect
of extinguishing an obligation.
c. Gaisano Cagayan Inc. vs. Insurance Company of North America G.R. No.
147839, June 8, 2006
Obligations of a OBLIGEE/DEBTOR to give DETERMINATE/SPECIFIC THING:

1. To preserve or TAKE CARE of the thing due with the proper diligence of a
good father of the family UNLESS another standard of care is required by
law or stipulated by the parties.
Art. 1163. Every person obliged to give something (determinate thing) 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.
2. To deliver the FRUITS of the thing.
Art. 1164. The creditor has a right to the fruits of the thing from the time
the obligation to deliver arises. However, he shall acquire no real right over
it until the same has been delivered to him.
3. To deliver all ACCESSIONS and ACCESSORIES of the thing although not

mentioned.
Art. 1166. The obligation to give a determinate thing includes that of

delivering all its ac cessions and accessories, even though they may not
have been mentioned.
4. To DELIVER the thing itself. (Art. 1163, 1233, 1244, Kinds of Delivery
Arts. 1497-1501)
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Art. 1233. A debt shall not be understood to have been paid unless the
thing or service in which the obligation consists has been completely
delivered or rendered, as the case maybe.
Art. 1244. The debtor of a thing cannot compel the creditor to receive a
different one, although the latter may be of the same value as, or more
valuable that which is due.
Obligations to do or not to do, an act or forbearance cannot be substituted

by another act or forbearance against the obligee’s will.
Art. 1497. The thing sold shall be understood as delivered, when it is

placed under the control and possession of the vendee.
5. To be liable for DAMAGES in case of delay, fraud, negligence or

contravention of the tenor thereof.
Art. 1170. Those who are 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.
ANNOTATIONS OF ARTICLES MENTIONED UNDER OBLIGATIONS OF A

DEBTOR TO GIVE A SPECIFIC/DETERMINATE THING:
ART. 1163 – To preserve and take care of the thing due with proper diligence of
a good father of the family unless another standard of care is required by law
or stipulation by the parties.
1. GR: Diligence of a good father of the family
2. Exception: However, if the law or contract provides for different standard
of care, the said law or stipulation must prevail.
3. Example of a case where the law requires extraordinary care.
a. Art. 1755. A COMMON CARRIER is bound to carry the passengers
safely as far as human care and foresight can provide, using the
utmost diligence of a very cautious person, with a due regard for all
the circumstances.
4. Leading cases:
a. Obejera et. al. vs. Iga Sy
b. Bishop of Jaro vs. De la Pena
c. Ronquillo et. al. vs. Singson
ART. 1164 – To deliver fruits of the thing

1. A is obliged to give B on Dec. 3, 2004, a parcel of land.
a. Before Dec. 3 he has no right whatsoever over the fruits.
b. After Dec. 3, 2004, the creditor is entitled right to the fruits.
c. But if the fruits are actually or constructively delivered on dec. 15,
2**4, B becomes owner of said fruits and land only from said date.
d. Bet. Dec. 3 and Dec. 15 B had only personal right (enforceable
against A) enforceable against A.
e. After Dec. 15, he has real right over the properties, a right that is
enforceable against the whole world.
2
f. Personal Right or jus in personam is a power demandable by one
person against the other to give, to do, or not to do.
g. Real Right or jus in re is a power over a specific thing like the right of
ownership or possession and binding on the whole world.
2. Leading cases:
a. Cruzado vs. Bustos & Escaler
3. Fruits contemplated under Art. 1164
a. Natural fruits which are spontaneous products of the soil and the
young and other products of animals.
b. Industrial fruits which are those produced by lands of any kind
through cultivation or labor.
c. Civil fruits which may be rents of buildings, the price of leases of
lands and other property and the amount of perpetual or life
annuities or other similar income.
ART. 1166 – To deliver all accessions and accessories of the thing although not
mentioned
1. ACCESSION signifies all of those which are produced by the thing which
is the object of the obligation as well as those which are incorporated or
attached thereto, either naturally or artificially. These included alluvium
and whatever is built, planted or sown on a person’s parcel of land.
ALLUVIUM – soil deposited or added to the lands adjoining the banks of

rivers and gradually receive from the effects of the current of the waters.
2. ACCESSORIES signifies all those things which have for their object the
embellishment, use or preservation of another thing which is more
important and to which they are not incorporated or attached. (Example:
The keys to a house and dishes in a restaurant).
KINDS OF DELIVERY:
1. ACTUAL DELIVERY – where physically the property changes hands.
(Example: If A sells B a fountain pen, the giving of A to B of the fountain
pen is actual tradition or delivery.
2. CONSTRUCTIVE DELIVERY – that where the physical transfer is implied.
a. TRADITIO SYMBOLICA – as when the keys of bodega are given.
b. TRADITIO LONGA MANU – delivery by mere consent or the pointing
out of the object.
c. TRADITIO BREVI MANU – the kind of delivery whereby a possessor of
a thing not as an owner, becomes the possessor owner.
d. TRADITIO CONSTITUTUM POSSESSORIUM- the delivery whereby a
possessor of a thing as an owner retains possession, no longer as an
owner but in some other capacity.
e. TRADITION BY THE EXECUTION OF LEGAL FORMS &
SOLEMNITIES.
WHEN DOES THE OBLIGATION TO DELIVER ARISE:
1. Generally, the obligation to deliver the thing due and consequently the
fruits thereof, if any, arises from the time of the perfection of the
contract.
3
Art. 1305. A contract is a meeting of minds between two persons whereby
one binds himself, with respect to the other, to give something or to render
some service.
2. If the obligation is subject to a resolutory condition or period, it arises

upon the fulfillment of the condition or arrival of the period.
Art. 1179. Every obligation whose performance does not depend upon a
future or uncertain event or upon a past event unknown to the parties, is
demandable at once.
Every obligation which contains a resolutory condition shall also be

demandable, without prejudice to the effects of the happening of the event.
3. In a contract of sale, the obligation arises from the perfection of the

contract even if the obligation is subject to a suspensive condition or
period where the price has been paid.
Art. 1495. The vendor is bound to transfer the ownership of and deliver as
well as warrant the thing which is the object of the sale.
DAMAGES IN CASE OF BREACH
DIFFERENT MODES OF BREACH OF OBLIGATIONS: Those who in the
performance of their obligation are guilty of:
1. FRAUD
2. NEGLIGENCE
3. DELAY
4. THOSE WHO IN ANY MANNER CONTRAVENE THE TENOR THEREOF
shall be liable for DAMAGES.
FRAUD IN ART. 1170
Art. 1170. Those who are 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.
1. FRAUD in Art. 1170
a. INCIDENTAL FRAUD/DOLO INCIDENTE/FRAUD IN PERFORMANCE
b. Fraud is the deliberate intention to cause damage or prejudice.
c. It is voluntary execution of a wrongful act, or a willful omission,
knowing and intending the effects which naturally and necessarily
arise from such act or omission.
d. The fraud referred to in Art. 1170 is the deliberate and intentional
evasion of the normal fulfillment of the obligation.
e. SEE: International Corporate Bank vs. Gueco 351 SCRA 516 *w/
digested case*
FRAUD IN ART. 1171

Art. 1171. Responsibility arising from fraud is demandable in all obligations.
Any waiver of an action for future fraud is void.
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1. FRAUD in Art. 1171
a. CAUSAL FRAUD/DOLO CAUSANTE
b. In order that fraud may vitiate consent, it must be the CASUAL
FRAUD not merely incidental fraud.
c. Inducement to the making of the contract.
d. It must be sufficient to or lead an ordinary prudent person into error,
taking into account the circumstances of each case.
e. Dolo causante must be that which determines or is the essential
cause of the contract.
f. It is the use of insidious words or machination of one of the
contracting parties which induced the other to enter into a contract
and without them, he would not have agreed to.
g. Leading cases:
g.1 Caram Jr. vs. Laureta 103 SCRA 7
g.2 Samson vs. Court of Appeals 238 SCRA 397
DISTINGUISH DOLO INCIDENTE/FRAUD IN PERFORMANCE & DOLO

CAUSANTE/ FRAUD IN CONSTITUTION
DOLO INCIDENTE DOLO CAUSANTE
COMMENCEMENT OF EXISTENCE
Present only during the performance Present only at the time of the birth
of a pre-existing obligation. of the obligation.
PURPOSE OF EMPLOYMENT
Employed for the purpose of evading Employed for the purpose of securing
normal fulfillment of an obligation. the consent of the other party to
enter into the contract.
RESULT
Results in the non-fulfillment of the Result in the vitiation of the
obligation. consent; it is the reason for the other
party upon whom it is employed for
entering the contract.
REMEDY
It gives rise to the right of the creditor It gives rise to the right of the
or oblige to recover damages from innocent party to ask for the
the debtor or obligor. annulment of contract if the fraud is
causal (dolo causante) or to recover
damages if it is incidental (dolo
incidental).

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NATURE AND EFFECTS OF OBLIGATION

Obligations of a OBLIGEE/DEBTOR to give DETERMINATE/SPECIFIC THING:

Art. 1163. Every person obliged to give something (determinate thing) is

2. To deliver the FRUITS of the thing.

3. To deliver all ACCESSIONS and ACCESSORIES of the thing although not

Art. 1166. The obligation to give a determinate thing includes that of

Obligations to do or not to do, an act or forbearance cannot be substituted

Art. 1497. The thing sold shall be understood as delivered, when it is

5. To be liable for DAMAGES in case of delay, fraud, negligence or

ANNOTATIONS OF ARTICLES MENTIONED UNDER OBLIGATIONS OF A

ART. 1164 – To deliver fruits of the thing

ALLUVIUM – soil deposited or added to the lands adjoining the banks of

2. If the obligation is subject to a resolutory condition or period, it arises

Every obligation which contains a resolutory condition shall also be

3. In a contract of sale, the obligation arises from the perfection of the

FRAUD IN ART. 1171

DISTINGUISH DOLO INCIDENTE/FRAUD IN PERFORMANCE & DOLO

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