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General Provisions and Nature and Effects of

Obligation

NATURE AND EFFECTS OF OBLIGATIONS

ESSENTIAL ELEMENTS OF AN OBLIGATION

1. Juridical tie/Efficient Cause Law

Contracts

Quasi-contracts

Delicts

Quasi-delicts

2. Object/Prestation To give

To do

Not to do

3. Subject-persons Creditor/oblige (active)

Debtor/obligor (passive)

Article 1163

Every person obliged to give something is also obliged to take care of it with proper
diligence of a good father of a family unless the law or the stipulation of the parties
require another standard of care

REMEDIES OF THE CREDITOR IN AN OBLIGATION TO GIVE A SPECIFIC THING

VS. A GENERIC THING

Specific Thing Generic Thing

Demand the delivery of the specific Demand delivery of the generic thing
thing from the debtor (Specific from the debtor (specific performance)
 performance) (Art. 1165 [1])

Demand damages in case of fraud, Demand delivery of the generic thing

negligence, delay, or contravention of from a third person at the cost of the
the tenor of the obligation (Art. 1170) debtor (substitute performance) (Art.
1165 [2])

Rescission with damages in reciprocal Creditor may obtain the generic thing
obligations (Art. 1191) himself and charge the cost to the
debtor (substitute performance)

Demand damages in case of fraud,

negligence, delay, or contravention of
the tenor of the obligation (Art. 1170)

Rescission with damages in reciprocal

obligations (Art. 1191)

Article 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.

Article 1165
When what is to be delivered is a determinate thing, 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 expenses 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 any fortuitous event until
he has effected the delivery.

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.
DUTIES OF THE DEBTOR IN AN OBLIGATION TO GIVE A SPECIFIC THING VS. A
GENERIC THING

Specific Thing Generic Thing

1. Take care of the thing with diligence 1 Deliver the generic thing (Art. 1165)
of a good father of a family (Art.
1163)
2. Deliver the fruits of the thing (Art. 2 Pay damages in case of fraud,
1164) negligence, delay or contravention of
tenor of the obligation (Art. 1170)

3. Deliver the specific thing (Art. 1165)

4. Deliver the accessions and

accessories of the thing (Art. 1166)
5. Pay damages in case of fraud,
negligence, delay, or contravention
of tenor of the obligation (Art. 1165
and 1170)

Article 1167
If the 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.

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.

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 declare;
(2) When from the nature and the circumstances of the obligation it appears that the
designation of the time when the thing is to be delivered or the service is to be rendered
was a controlling motive for the establishment of the contract;
(3) When demand would be useless, as when the obligor has rendered it beyond his
power to perform.
In reciprocal obligations, 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 the other begins

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.

Article 1171
Responsibility arising from fraud is demandable in all obligations. Any waiver of an
action for future fraud is void.

Article 1172
Responsibility arising from negligence in the performance of every kind of obligation is
also demandable, but such liability shall may be regulated by the courts, according to
the circumstances.

Article 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 the time and of the place. When negligence shows bad faith, the provisions
of articles 1171 and 2201, paragraph 2, shall apply.

FRAUD vs. NEGLIGENCE

Fraud Negligence

Intentional evasion of the fulfillment of Omission of diligence required by the

the obligation nature of the obligation

Liability for past fraud may be waived, There is liability of the negligence of the
waiver of future is void. guilty party is the proximate cause of
the damage; such liability for damages
is mitigated by the contributory
negligence of the injured party.

The debtor is liable for all the damages The debtor is liable for the damages
reasonably attributed to the breach of due to the natural and probable
 the obligation consequences of the breach of the
obligation, as well as the damages
foreseen, if he is negligent in good faith

The debtor is liable for all the damages

reasonably attributed to the breach of
the obligation, if he is negligent and in
bad faith.

Article 1174
Except in cases expressly specified by law, or when it otherwise declared by stipulation,
or when the nature of the obligation requires the assumption of risk, no person shall be
responsible for those events which could not be foreseen, or which, though foreseen,
were inevitable.

FORTUITOUS EVENTS

General Rule Elements Exceptions

No one is liable 1.Cause of event is independent of 1. Law specifies that a

for fortuitous human will party is liable for
events fortuitous events

2. Event is impossible to foresee 2. Parties declare by

or impossible to avoid stipulation that a party is
liable for fortuitous events

3. Occurrence renders it 3. Nature of obligation

impossible for debtor to fulfill his requires the assumption
obligation in a normal manner of risk

4. Debtor did not participate in the

aggravation of the result due to a
fraud, fault, or negligence

Article 1175
Usurious transactions shall be governed by special laws.

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.

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.

Self Help: You can also refer to the sources below to help you further
understand the lesson:

De Leon, H.S. & De Leon, H.M. (2014). The Law on Obligations and
Contracts.Revised Edition. Manila: Rex Bookstore.

Samson, Anna Rhea Valle Esq..(2016). Law on Obligations and Contracts. Quezon
City :C & E Publishing, Inc.