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3 NATURE AND EFFECT OF OBLIGATIONS (1)

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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.
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Something in the above provision refers to an obligation involving a specific or determinate


thing.

A specific or determinate thing is a particularly designated or physically segregated thing from


others of the same class.

Examples:
-the watch I am wearing
-the car sold by X
-my dog named Brownie
-a car with plate number BBV 365

The debtor cannot substitute a determinate thing with another although the latter is of the same
kind and quality without the consent of the creditor.

A generic or indeterminate thing refers only to a class or genus to which it pertains and cannot
be pointed out with particularity.

Examples:
-a 2004 Mitsubishi car
-a cavan of rice
-the sum of Php 2000.00
-a Samsung cellphone

The debtor can give anything of the same class as long as it is of the same kind.

Example:

If Ss obligation is to deliver to B a Bulova calendar watch, S can deliver any watch as


long as it is a Bulova with calendar.

But if Ss obligation is to deliver to B a particular watch, the one S is wearing, S cannot


substitute it with another watch without Bs consent nor can B require S to deliver
another watch without Ss consent although it may be of the same kind and value.

3 Nature and Effect of Obligations (1)


Philippine Electronics Engineering (ECE) Law, Contracts, & Ethics
A. R. Sombilla Page 1
Duties of the debtor in an obligation to give a determinate thing

1. Preserve the thing. in obligations to give, the obligor has the incidental duty to take care of
the thing due with the diligence of a good father of a family pending delivery.

2. Deliver the fruits of the thing. discussed under Article 1164


3. Deliver the accessions and accessories. discussed under Article 1166

4. Deliver the thing itself.

5. Answer for damages in case of non-fulfillment or breach. discussed under Article 1170

Duties of the debtor in an obligation to give a generic thing

1. To deliver a thing which is of the quality intended by the parties taking into consideration the
purpose of the obligation and other circumstances

2. To be liable for the damages in case of fraud, negligence, or delay, in the performance of his
obligation, or contravention of the tenor thereof.

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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.
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Kinds of fruits mentioned by the law:

1. Natural fruits are the spontaneous products of the soil, and the young and other products of
animals.

Example:

Grass; all trees and plants on lands produced without the intervention of human labor

2. Industrial fruits are those produced by lands of any kind through cultivation or labor.

Example:

Sugar cane; vegetables; rice; and all products of lands brought about by reason of human
labor

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Philippine Electronics Engineering (ECE) Law, Contracts, & Ethics
A. R. Sombilla Page 2
3. Civil fruits are those derived by virtue of a juridical relation.

Example:

Rents of buildings, price of leases of lands and other property and the amount of
perpetual or life annuities or other similar income

The creditor is entitled to the fruits of the thing to be delivered from the time the obligation to
make delivery arises. The intention of the law is to protect the interest of the obligee should the
obligor commit delay, purposely or otherwise, in the fulfillment of his obligation.
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.

Meaning of Personal right and Real right:

1. Personal right is the right or power of a person (creditor) to demand from the another (debtor),
as a definite passive subject, the fulfillment of the latters obligation to give, to do, or not to
do.

2. Real right is the right or interest of a person over a specific thing (like ownership, possession,
mortgage), without a definite passive subject against whom the right may be personally enforced.

Ownership and other real rights over property are acquired and transmitted in consequence of
certain contracts by tradition (Article 712) or delivery.

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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
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.
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Remedies of creditor in real obligation:

1. In a specific real obligation (obligation to deliver a determinate thing), the creditor may
exercise the following remedies or rights in case the debtor fails to comply with his
obligation:

3 Nature and Effect of Obligations (1)


Philippine Electronics Engineering (ECE) Law, Contracts, & Ethics
A. R. Sombilla Page 3
a. demand specific performance or fulfillment (if it is still possible) of the obligation with a
right to indemnity for damages: or

b. demand rescission or cancellation (in certain cases) of the obligation also with a right to
recover damages (Article 1170.); or

c. demand payment of damages only, where it is the only feasible remedy.

In an obligation to deliver a determinate thing, the very thing itself must be delivered (Article
1244). Consequently, only the debtor can comply with the obligation. This is the reason why the
creditor is granted the right to compel the debtor to make the delivery (Article 1165, par. 1.)

It should be clear, however, that the law does not mean that the creditor can use force or violence
upon the debtor. The creditor must bring the matter to court and the court will be the one to order
the delivery.

Example:

Engr. S sold a machine to Mr. B for Php 20, 000.00. If Engr. S refuses to comply with his
obligation to deliver the machine, Mr. B can bring an action for fulfillment or rescission
of the obligation with the payment of damages in either case (Article 1191). In case of
rescission, the parties must return to each other what they have received (Article 1385).

2. A generic real obligation (obligation to deliver a generic thing), on the other hand, can be
performed by a third person since the object is expressed only according to its family or
genus. It is, thus, not necessary for the creditor to compel the debtor to make the delivery,
although he may ask for performance of the obligation. In any case, the creditor has the right
to recover damages under Article 1170 in case of breach or violation of the obligation. The
manner of compliance with an obligation to deliver a generic thing is governed by Article
1246.

Example:

Engr. S obliges himself to deliver to Mr. B the machine on June 25 for Php 100, 000.
If Engr. S does not comply with his obligation, Mr. B may buy the machine from Mr. C,
a third person. If Mr. B paid Mr. C Php 105, 000, he may recover the (assuming Mr. B
has not yet paid Engr. S) Php 5, 000 from Mr. S. Mr. B can also hold S liable for
damages in view of Article 1170 as in the case of the delivery of a determinate thing.

Reference: The Law on Obligations and Contracts 2011


by H. S. De Leon and H. M. De Leon, Jr.

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3 Nature and Effect of Obligations (1)


Philippine Electronics Engineering (ECE) Law, Contracts, & Ethics
A. R. Sombilla Page 4

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