CHAPTER 2 NATURE AND EFFECT OF OBLIGATIONS

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.

• Speaks of an obligation to care of a DETERMINATE thing (that is one which is

specific; a thing identified by its individuality) which an obligor is supposed to deliver to
another.

Example of determinate thing: A car with the plate number TRL 219

Example of indeterminate thing: A car

• Reason: the obligor cannot take care of the whole class/genus

DUTIES OF DEBTOR:

• Preserve or take care of the things due.

DILIGENCE OF A GOOD FATHER – a good father does not abandon his family, he is
always ready to provide and protect his family; ordinary care which an average and
reasonably prudent man would do. Ordinary care.

- Defined in the negative in Article 1173

ANOTHER STANDARD OF CARE – extraordinary diligence provided in the stipulation

of parties.

FACTORS TO BE CONSIDERED – diligence depends on the nature of obligation and

corresponds with the circumstances of the person, time, and place.

** Debtor is not liable if his failure to deliver the thing is due to fortuitous events
or force majeure… without negligence or fault in his part.

Fortuitous Events: Act of God (calamities) and Act of man (robbery, riots, etc.)

• Deliver the fruits of a thing

• Deliver the accessions/accessories

• Deliver the thing itself

• Answer for damages in case of non-fulfillment or breach

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 exists:

• When the law or obligation so expressly declares; Ex. Paying taxes

• When from the nature of the contract, time us the essence and motivating factor for its
establishment; Ex. Orders that are time bound

• When demand would be useless (prestation is impossible);

• In reciprocal obligations, from the moment one of the parties fulfills his obligation;

• When the debtor admits he is in default

Clearly states that NO DEMAND, NO DELAY

ORDINARY DELAY – mere failure to perform an obligation at the appointed time.

LEGAL DELAY (DEFAULT) – tantamount to non-fulfillment of the obligation and arises

after an extrajudicial or judicial demand was made upon the debtor.

KINDS OF DEFAULT:

a) MORA SOLVENDI – delay on the part of the debtor to fulfill his obligation;
REQUISITES:

1. failure of the obligor to perform obligation on the DATE agreed upon;

2. demand (judicial/extrajudicial) by the creditor;

3. failure to comply with such demand

EFFECTS:

1) debtor – liable for damages and interests

2) debtor – liable for the loss of a thing due to a fortuitous event

KINDS:

1) mora solvendi ex re – default in real obligations (to give)

2) mora solvendi ex persona – default in personal obligations (to do)

b) MORA ACCIPIENDI – delay on the part of the creditor to accept the

performance of the obligation;
Effects:

1. creditor – liable for damages

2. creditor – bears the risk of loss of the thing

3. debtor – not liable for interest from the time of creditor’s delay

4. debtor – release himself from the obligation

c) COMPENSATIO MORAE – delay of the obligors in reciprocal obligation.

Effect: the default of one compensates the default of the other; their respective liabilities
shall be offset equitable.

⚫ Default / Delay in negative obligation is not possible. (In negative obligation, only
fulfillment and violation are possible)

1173. The fault or negligence of the obligor consists in the omission of that
diligence which is required by the nature of the obligation and corresponds with
the circumstances of the persons, of he time and of the place… If the law or
contract does not state the diligence which is to be observed in the performance,
that which is expected if a good father of a family shall be required.

- This provision provides for a negative definition of “proper diligence of a good

father of a family”

FRAUD distinguished from NEGLIGENCE

DILIGENCE – the attention and care required of a person in a given situation and is
opposite of negligence.

NEGLIGENCE – consists in the omission of that diligence which is required by the

nature of the particular obligation and corresponds with the circumstances of the
persons, of the time, and of the place.
KINDS of DILIGENCE:

1. DILIGENCE OF A GOOD FATHER – a good father does not abandon his family, he
is always ready to provide and protect his family; ordinary care which an average and
reasonably prudent man would do.

2. Diligence required by the law governing the particular obligation

3. Diligence stipulated by the parties.

CHAPTER 3 DIFFERENT KINDS OF OBLIGATIONS

Section 1 – Pure and Conditional Obligations

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.

PURE OBLIGATION – an obligation which does not contain any condition or term upon
which the fulfillment is made to depend; immediately demandable by the creditors and
the debtor cannot be excused from not complying with his prestation.

Ex. Promissory note

CONDITIONAL OBLIGATION – an obligation which depends upon a future or uncertain

event, or upon a past event unknown to the contracting parties. – an obligation subject
to a condition.

a) Suspensive Obligation – its fulfillment gives rise to an obligation; the demandability

of the obligation or the effectivity of the contract can take place only after the condition
has been fulfilled.

Ex. I will give Toni Rose 1,000,000 pesos if she will stop seeing my son.

b) Resolutory Obligation – its happening extinguishes the obligation which is already

existing;

Ex. The government will be giving 5,000 pesos worth of monthly financial aid to
the student until she reach 22 years old.
1182. When the fulfillment of the condition depends upon the sole will of the
debtor, the conditional obligation shall be void. If it depends upon chance or
upon the will of a third person, the obligation shall take effect in conformity with
the provisions of this Code.

• Applies only to suspensive conditions.

3 KINDS OF CONDITIONS UNDER THIS ARTICLE:

1. POTESTATIVE – a suspensive condition which depends upon the will of one of

the contracting parties = if at the sole will of the debtor, it is void; if at the creditor’s,
still valid. this is to prevent the establishment of illusory obligations.

Illusory obligations- not enforceable by law (…I feel like it)

Example: If you give me 100,000 I will sell you my car if I feel like it.

2. CASUAL – the condition depends upon chance or the will of a third person;(e.g.
cellphone warranty)

3. MIXED – the condition depends partly upon the will of the parties and partly
upon chance or the will of a third person; (example ni Atty. De Chavez: passing the
bar)

1184. The condition that some event happen at a determinate time shall
extinguish the obligation as soon as the time expires or if it has become
indubitable that the event will not take place.

Example: Mr. Green promised Ross that he will give him 20,000,000 if Ross will
marry his daughter, Rachel within the year 2020. If Rachel married Gunther or
died and still refused to marry Ross within the year 2020, then Mr. Green’s
promise/obligation to Ross is extinguished.

Positive condition – refers to the fulfillment of an event or performance of an act

Negative condition – refers to the non-fulfillment or non-performance of an act.

POSITIVE SUSPENSIVE CONDITION

The obligation is extinguished:

1. As soon as the TIME EXPIRES without the event taking place; 2. As soon as it has
become certain that the EVENT WILL NOT TAKE PLACE although the time specified
has not yet expired.
Section 2 – Obligations with a Period

1193. Obligations for whose fulfillment a day certain has been fixed, shall be
demandable only when that day comes. Obligations with a resolutory period take
effect at once, but terminate upon arrival of the day certain. A day certain is
understood to be that which must necessarily come, although it may not be
known when. If the uncertainty consists in whether the day will come or not, the
obligation is conditional, and it shall be regulated by the rules of the preceding
Section.

PERIOD / TERM – consists in a space or length of time upon the arrival of which,
the demandability or the extinguishment of an obligation is determined; it may be
definite (exact date or time is known) or indefinite (arrival of date is unknown but sure to
come). - Future + Certain event

GENERAL CLASSIFICATIONS:

a) EX DIE / SUSPENSIVE PERIOD – from a day certain give rise to the obligation;
suspensive effect.

Becomes effective only from the arrival of a certain day.

Example: Simon promised Daphne that he will marry her once she turned 18.

b) IN DIEM / RESOLUTORY PERIOD – arrival of a term certain terminated the

obligation; resolutory effect.

Effective up to a certain day but will be terminated upon the arrival of that day.

Example: Mark promised Sloan to let her stay at his house until Sloan gave birth.

Term – length of time sure to come Condition – fact or event uncertain to come