NATURE AND EFFECTS OF OBLIGATION KINDS OF DELIVERY

Article 1163 (take care with proper diligence of a good father unless 1. Actual Delivery (tradition) -property changes hands physically
law/stipulation of parties require another standard of care) 2. Constructive Delivery -physical transfer of property is implied
a. Traditio Simbolica
PRESTATIONS IN OBLIGATION -symbolical tradition
b. Traditio longa manu
 To give -delivery by mere consent/pointing out the
 To do object
 Not to do c. Traditio brevi manu
-delivery by short hand
DETERMINATE/SPECIFIC VS. INDETERMINATE/GENERIC -possessor of a thing not an owner becomes
the possessor as owner
*Determinate/Specific -object is particularly designated/physically
d. Tradtio constitutum possessorium
segregated from all others of the same class
-opposite of brevi manu
*Indeterminate/Generic -object is designated merely by its class or genus -possessor of a thing as owner retains
without any particular designation/ physical segregation from possessions not as owner, but in some
others of the same class other capacity
e. Tradition by execution of legal forms
DILIGENCE OF A GOOD FATHER OF A FAMILY

Accepted notion: No father would ever want to risk his family

Article 1165 (if determinate thing is to be delivered, creditor may compel
DILIGENCE REQUIRED debtor to make delivery. If indeterminate thing, he may ask that the
obligation be complied at the expense of the debtor. If debtor delays/
(if another standard of care is required) promised to deliver to 2 or more persons with different interest he is liable
for any fortuitous event until he has effected the delivery)
1. By Provision of the Law
Ex: Article 1733 of the Civil Code (Common Carriers) RIGHTS OF CREDITOR IF DEBTOR FAILED TO DELIVER
2. By Stipulation of the Parties
Stipulation shall not be one that waives the most If thing is Determinate:
standard care
3. In the absence of law and stipulation 1. Compel the debtor to make the delivery (specific performance)
the diligence of a good father of a family shall apply 2. Demand damages from the debtor if debtor is guilty of fraud,
negligence or contravention in the performance of the obligation
OBLIGATIONS OF A PERSON OBLIGED TO GIVE SOMETHING
If thing is Indeterminate:
1. To preserve and take good care of the thing
2. To deliver the thing including the fruits of the thing 1. Ask for compliance of obligation by debtor/third person at
3. To deliver the accessions and accessories of the thing debtor’s expense (thing must neither be of superior/inferior
quality charging all the expenses to the debtor)
2. Demand damages from debtor

Article 1164 (creditor has a right to the fruits of the thing) EFFECT OF FORTUITOUS EVENTS

KINDS OF FRUITS *Fortuitous Event -event which could not be foreseen or foreseen but not
inevitable
1. Natural Fruits
-spontaneous products of the soil, young, and other Obligation to deliver:
products if animals (ex: plants & tress that grow
without human intervention)  Determinate Thing -extinguished by fortuitous event
2. Industrial Fruits  Indeterminate Thing -not extinguished by fortuitous event
-produced by lands of any kind through because genus never perishes (genus nunquam perit)
cultivation/labor (ex: crops planted & cared for by
man) WHEN FORTUITOUS EVENT DOES NOT EXEMPT
3. Civil Fruits
1. If obligor delays; legal delay/default is required
-derived by virtue of juridical relation (ex: rents of
*There is delay when there is demand for the
building, price of leases of lands & other properties)
fulfilment of the obligation, be it judicially or
PERSONAL VS. REAL RIGHTS extrajudicially
2. If obligor has promised to deliver the same thing to 2 or more
*Personal Right/Jus In Personam -power demandable by one person to persons with different interest; debtor is guilty of bad faith
another to give, to do, or not to do
Here, obligor shall be responsible for any fortuitous event until he has
*Real Right/Jus In Re -power over a specific thing and is binding on the effected the delivery.
whole world

CREDITOR’S RIGHTS TO FRUITS

Article 1166 (obligation to deliver the thing with its accessions and
Creditor has PERSONAL RIGHT to the fruits of the thing from the time the accessories though not mentioned)
obligation to deliver it arises. No REAL RIGHT over it unless it has been
delivered to him. ACCESSIONS VS. ACCESSORIES

WHEN OBLIGATION TO DELIVER ARISES *Accessions -things produced by a thing which is the object of the contract
and those which are naturally/artificially attached thereto
1. No Term/Condition -from the perfection of the contract; when
there’s meeting of minds between the parties (ex: natural, industrial, civil fruits; in land -those built, planted,
2. There’s Term/Condition -from the moment the term and sown thereto)
arrives/condition happens
*Accessories -things which have for their object the embellishment, use, or
preservation of another thing which is important and to which they are not
incorporated or attached

(ex: equipment of a factory, tools of a machine, key of a house)

EFFECT OF STIPULATION DELAY IN RECIPROCAL OBLIGATIONS

There is no stipulation as to the inclusion of accessions & accessories in the  Fulfillment of obligation by one party depends upon the
delivery of the determinate thing, but there should be a stipulation to the fulfillment of obligation by the other
contrary if they are not to be included.  Fulfillment of obligation is simultaneous
 One party must comply/ready to comply so the other incurs in
delay
 If both parties do not comply, delay of one compensates delay of
Article 1667 (refers to personal obligation “to do”; if a person obliged to do
the other. Here, no delay is incurred by either party
something fails to do it, he shall be executed at his cost. It shall also be
observed if done in contravention of the tenor of the obligation; what is
poorly done, be undone)
Article 1170 (those guilty of fraud, negligence, delay of contravention of
REMEDIES OF THE CREDITOR tenor, shall be liable for damages)
1. To have the obligation performed/executed by debtor/third party GROUNDS FOR DAMAGES
at the expense of the debtor
a. Debtor cannot be order specific performance as this 1. Fraud (or dolo)
may amount to involuntary servitude 2. Negligence (or culpa)
b. Not possible to third person if personal qualification of 3. Delay (or mora)
debtor is the primary consideration of the contract 4. Contravention of term of the agreement (includes not only any
2. To claim damages because of breach illicit act, but also every kind of defective performance)

Also applies when obligation is performed in contrary to the terms KINDS OF DAMAGES
agreed upon/when obligation is poorly done
1. Actual/Compensatory -to adequately compensate for pecuniary
loss suffered including profits; may be recovered for
loss/earning capacity
Article 1668 (refers to personal obligation “not to do”; if debtor does what 2. Moral -include physical suffering, mental anguish, fright, serious
has been forbidden of him, it shall be undone at his expense) anxiety, besmirched reputation, wounded feelings,
moral shock, social humiliation ad similar injury; may
Obligation is fulfilled so long as debtor refrains from doing what has been
be recovered in criminal offense & quasi-delict
forbidden of him
3. Nominal -only token damages awarded to parties who have
CREDITOR’S RIGHT AGAINST DEBTOR experienced an injury to their legal rights but no actual
loss; purpose: vindicate the right that has been violated
1. Ask that what has been done be undone at the expense of the 4. Temperate/Moderate -amount of pecuniary loss suffered cannot
debtor be proven with certainty; more than nominal but less
2. Entitled to claim damages than compensatory
5. Liquidated -agreed upon by the parties to a contract in case of
breach; must be realistic & in proportion to the losses
that might be reasonably anticipated should be there a
Article 1669 (those obliged to deliver/do something incur in delay; speaks of
breach
legal delay)
6. Exemplary/Corrective -to set example or to correct for the public
ORDINARY DELAY VS. LEGAL DELAY good; cannot be recovered as a matter of right

*Ordinary Delay -failure to perform an obligation on time that does not CONTRAVENTION OF THE TENOR OF THE AGREEMENT
constitute breach
 Debtor who acted in good faith shall be liable to damages
*Legal Delay (default/mora) -failure to perform an obligation on time which that are natural and probable consequences of the breach of
constitute a breach of obligation obligation & which parties might have foreseen/could have
reasonably foreseen at the time the obligation was
KINDS OF DEFAULT OR MORA constituted
 In case of fraud, bad faith, malice or wanton attitude, debtor
1. Mora solvendi -delay of debtor to perform his obligation shall be responsible to all damages reasonably attributed to
a. Mora solvendi ex re -delay to give non-performance of obligation
b. Mora solvendi ex persona -delay to do
2. Mora accipiendi -delay of creditor to accept delivery of object
3. Compensatio morae -delay of parties in reciprocal obligations
Article 1171 (responsibility arising from fraud -demandable;
REQUISITES OF MORA

1. In positive obligations (to give/to do), debtor incurs delay from

the time creditor demands the fulfillment of obligation from him
2. Demand may be judicial/extra-judicial
a. Judicial -when creditors file complaint in court against
the debtor in fulfillment of the obligation
b. Extra-judicial -when creditors demand debtor orally/in
writing
3. If after demand, debtor fails to deliver, he shall be in mora
solvendi & shall be liable for damages

WHEN DEMAND IS NOT NECESSARY

1. When law/obligation expressly declares so; obligation must

include a statement to the effect that demand is not necessary in
order that debtor shall not incur in delay
2. When it appears from nature & circumstances of the obligation
that the designation of the time was a controlling motive for the
embellishment of the contract; time is of essence
3. When demand would be useless; when debtor rendered beyond
his power to perform (ex: car to be delivered was destroyed)