LAW ON OBLIGATIONS
CHAPTER I General Provisions
ART. 1156. An obligation is a
juridical necessity to give, to do
or not to do.
Juridical Necessity – rights and duties arising from
obligation are legally demandable and the courts of
justice may be called upon through proper action to
order the performance.
Action – means an ordinary suit in court of justice by
which one party prosecutes another for the enforceable
or protection for a right or a prevention or redress of a
wrong (Sec. 1. Rules of court).
Example: John Snow bought a car from Ygritte but John
Snow did not pay the car. If after demand, John Snow
still did not pay, Ygritte can sue John Snow in Court
either to demand payment or for recovery of the car.
OBLIGATIONS a juridical relation whereby a person
(creditor) may demand from another (debtor) the
observance of a determinate conduct, and, in case of
breach, may obtain satisfaction from the assets of the
latter. (Arias Ramos)
Essential requisites of an obligation
1. SUBJECT
a. Active subject (creditor/obligee) - has the power to
demand the prestation;
b. Passive subject (debtor/obligor) - is bound to
perform the prestation;
2. OBJECT or PRESTATION - consists in the act of
giving, doing or not doing something;
3. VINCULUM JURIS - the juridical tie between the two
subjects by reason of which the debtor is bound in favor
of the creditor to perform the presentation.
- constitutes the source of obligation – the coercive
force which makes the obligation demandable.
Illustration of Requisites in Different Obligations
1. Obligation to give - consists of delivery of a movable
or an immovable thing to the creditor.
Ex. Cersei enters into a contract with Jamie whereby
Jaime said that she will deliver a horse. Cersei did not
deliver the horse.
• Cersei is the passive subject or debtor and Jamie is
the active subject or creditor.
• The object or prestation is the horse and
• the obligation to deliver is the legal tie or the
vinculum juris which binds Cersei and Jamie.
2. Obligation to do – all kinds of work or services
whether physical or mental. Contract of professional
services like painting, construction of houses, etc
3. Obligation not to do – refraining from doing acts.
Obligation of a building owner to refrain from committing
nuisance through noise, offensive odor, smoke, heat,
etc. (Art 682, Law on Property)
SOURCES OF OBLIGATIONS
Art. 1157. Obligations arise from:
(1)Law;
(2)Contracts;
(3)Quasi-contracts;
(4)Acts or omissions punished by law; and
(5)Quasi-delict.
1. LAW – refers to the legal obligations or obligations
imposed by specific provisions of law
Art. 1158. Obligations arising from law are not
presumed and that to be demandable must be clearly
provided for, expressly or impliedly in the law.
Examples:
Obligation to support one’s family (Art. 195, Family
Code) National Internal Revenue Code, it is the duty of
every person having an income to pay taxes.
2. CONTRACT - the meeting of minds between two
person whereby one binds himself with respect to the
other (Art. 1305, New Civil Code)
Obligatory force of contracts
Art. 1159. Obligations arising from contracts have the
force of law between the contracting parties and should
be complied with in good faith.
- that which is agreed upon in the contract by the parties
is the law between them. Ex. A contract of lease was
executed between John as the lessee and Marsha as
the lessor for the rent of an apartment. Governed by the
law on lease but parties may stipulate as to the terms
and conditions of the same so long as they are not
contrary to law, morals, good custom, public order or
public policy (Art. 1306, NCC).
3. Quasi-contract - the juridical relation resulting from a
lawful, voluntary and unilateral act which has for its
purpose the payment of indemnity to the end that no
one shall unjustly enrich or benefited at the expense of
another. (Art. 2142, NCC)
•qua si – “as if”
Contracts and quasi-contracts distinguished:
In a contract, consent is essential requirement for its
validity while in quasi-contract, there is no consent as
the same is implied by law;
Contract is a civil obligation while quasi-contract is a
natural obligation.
SOURCES OF OBLIGATIONS (QUASI-CONTRACTS)
Two Kinds of Quasi-Contract:
1. Solutio Indebiti (Payment by mistake)
•arises when a person is obliged to return something
received by him through error or mistake.
E.g. A owed B the sum of P1, 000.00. By mistake, A
paid P2,000.00. B has the obligation to return the P1,
000.00 excess because there was payment by mistake.
2. Negotiorum gestio (management of another’s
property)
•voluntary management or administration by a person of
the abandoned business or property of another without
any authority or power from the latter. (Art. 2144, NCC)
E.g. Victor left for abroad leaving his livestock farm
unattended. Ramon, a neighbor of Victor managed the
farm thereby incurring expenses. When Victor returns,
he has the obligation to reimburse Ramon for the
expenses incurred by him and to pay him for his
services. It is bases on the principle that no one shall
enrich himself at the expense of another.
4. DELICTS or acts or omissions punishable by law as
a source of obligations
*Criminal act gives rise to civil liability as it caused
damage to another.
• Article 100, Revised Penal Code
Civil liability arising from delicts:
(1) Restitution - restoration of or returning the object of
the crime to the injured party;
(2) Reparation - payment by the offender of the value
of the object of the crime, when such object cannot be
returned to the injured party ; and
(3) Indemnification - consequential damages which
includes the payment of other damages that may have
been caused to the injures party
5. QUASI-DELICTS - whoever by act or omission
causes damage to another, there being fault of
negligence, is obliged to pay for the damage done.
Such fault of negligence, if there is no pre-existing
contractual relation between the parties. (Art. 2176)
E.g. If Pedro drives his car negligently and because of
his negligence hits Jose, who is walking on the sidewalk
of the street, inflicting upon him physical injuries. Then
Pedro becomes liable for damages based on quasi-
delict.
Requisites of a quasi-delicts:
(1) There must be fault of negligence attributable to the
offended;
(2) There must be damage or injury caused to another;
(3) here is no pre-existing contract.
E.g. If Pedro drives his car negligently and because of
his negligence hits Jose, who is walking on the sidewalk
of the street, inflicting upon him physical injuries. Then
Pedro becomes liable for damages based on quasi-
delict.
NEGLIGENCE - failure to observe, for the protection of
the interests of another person, that degree of care,
precaution and vigilance which the circumstances justly
demand, whereby such other person suffers injury.
(Judge Cooley)
Test of Negligence
For the existence of negligence, the following are
necessary:
(1) a duty on a party of the defendant to protect the
plaintiff from the injury of which the latter complains;
(2) a failure to perform that duty; and
(3) an injury to the plaintiff through such failure.
Kinds of Negligence
1. Culpa Aquiliana - quasi-delict or negligence as a
source of obligation.
e.g. Rakes v. Atlantic, Cangco v. MRC
2. Culpa contractual - negligence in the performance
of a contract.
Example showing this difference is found in Gutierrez
vs. Gutierrez , 56 Phil 177-
While trying to pass each other on a narrow bridge, a
passenger truck and private automobile collided, and
the plaintiff, passenger in the truck, was injured. The
owner of the passenger truck was made a defendant,
although a driver was driving the truck and the owner of
the car was also made a defendant, although he was
not in the car but which was being driven by his 18 year
old son and in which members of his family were then
riding. The court found both drivers negligent, basing
the liability of the owner of the truck to the plaintiff on
the contract of carriage; while the liability of the owner of
the car was based on Quasi-delict of the Civil Code. As
against the owner of the truck, there was Culpa
Contractual, while as against the owner of the car there
was Culpa Aquiliana.
CHAPTER II NATURE AND EFFECT OF
OBLIGATIONS
1. Personal Obligations
- Obligations to do or not to do; where the subject
matter is an act to be done or not to be done.
a. Positive – obligation to do.
b. Negative – obligation not to do.
2. Real Obligations
•Obligations to give; where the subject matter is a thing
which the obligor must deliver to the oblige.
a. Determinate or specific – object is particularly
designated or physically segregated from all other
things of the same class.
b. Generic or Indeterminate – when it refers only to a
class or genus to which it pertains and cannot be
pointed out with particularity.
EFFECTS OF OBLIGATIONS
NATURE AND EFFECT OF OBLIGATIONS
ART. 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. (1904a)
ART. 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. (1905)
ART. 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 any fortuitous
event until he has effected the deliver. (1906)
ART. 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. (1097a)
DEFINITION OF TERMS
1. Determinate thing –when a thing is particularly
designated or physically segregated from all others from
the same class. (Art. 1460, NCC)
2. Indeterminate or generic thing –refers to a class or
thing or genus and cannot be designated with
particularity. (Art.1460, NCC)
MEANING OF PERSONAL RIGHT AND REAL RIGHT
• Personal Right – is the right or power of a person
(creditor) to demand from another (debtor).
• Real Right – is the right or interest of a person over a
specific thing (like ownership, possession, and
mortgage).
OBLIGATIONS OF THE DEBTOR TO GIVE A
DETERMINATE THING
1. To preserve or take care of the thing with the proper
diligence of a good father of a family. (Art. 1163)
DILIGENCE OF A GOOD FATHER OF A FAMILY
Ordinary care or that diligence which an average or
reasonably prudent person would exercise over his own
property.
• ordinary diligence that a prudent man would exercise
in taking care of his own property taking into
consideration the nature of the obligation, of the time
and of the place,
Example: a person who is obliged to deliver a
determinate horse to another should, pending its
delivery, preserve it by taking care of the same as if the
horse is his own.
NOTE: RULE ON STANDARD OF CARE
§ That which the law requires; or
§ That stipulated by the parties; or
§ In the absence of the two, diligence of a good father
of a family.
CASES ON TEST OF DILIGENCE
• 1. Rakes v. Atlantic, 7 Phil. 395
• 2. Cangco v. MRC, 38 Phil. 768
• 3. Gutierrez v. Gutierrez, 56 Phil. 177
OBLIGATIONS OF THE DEBTOR TO GIVE A
DETERMINATE THING
2. To deliver the object or thing when the obligation to
deliver arises, including:
(a) Fruits of the thing, if any (Art. 1164)
Kinds of fruits
— Natural - spontaneous product of the soil; the young
and other products of animal. E.g. tress, plants on lands
without he intervention of man.
— Industrial - produced by lands of any king through
cultivation and labor. E.g. sugar cane, vegetables, rice.
— Civil - derived by virtue of juridical relations. E.g.
rents of a building; prices of leases of lands and other
similar income.
Exceptions:
a. When the parties made a stipulation as regards the
right of the creditor to the fruits of the thing.
b. When the obligation is subject to a suspensive
condition or period; arises upon fulfillment of the
condition or arrival of the period
NOTE:
When does creditor acquire a right to the thing to be
delivered and its fruit?
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
have been delivered to him. (Art. 1164, NCC)
Example – A binds himself to deliver his horse to B. No
date nor condition is stipulated for delivery of the horse.
Later, the horse gave birth to a colt. B has right to the
colt-- the same being the natural fruit of the horse. Said
right, however is personal.
Before delivery, B does not acquire real right over it.
3. To deliver its accessions and accessories (Art.
1166)
• Accessions – addition to or improvements upon a
thing.
• Law Property – mode of acquiring ownership
Accessories – things joined to, or included with the
principal thing for its better use, embellishment or
completion.
Accessions and accessories.
— Accession – is the right pertaining to the owner of a
thing over its products and whatever is attached thereto
either naturally or artificially.
— Accretion which refers to the gradual and addition of
sediment to the shore by action of water.
— Accessories – are those things which are joined
attached to the principal object as ornament or to render
it perfect.
Example: Radio attached to a car; or key to a car.
4. To deliver the thing itself.
5. To pay damages in case of breach of the obligation
by reason of delay, fraud, negligence or contravention
of the tenor of the obligation (Art. 1170, NCC)
OBLIGATIONS TO DO
• Art. 1167. If a 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. (1098)
OBLIGATION OF THE DEBTOR TO DO VS NOT TO
DO
TO DO – Being a personal positive obligation, the
creditor has the right to secure the services of third
person to perform the obligation at the expense of the
debtor under the following instances:
• When the debtor fails to do the obligation;
• When the debtor performs the obligation but contrary
to the tenor; or
• When the obligor poorly performs the obligation.
OBLIGATION OF THE DEBTOR NOT TO DO
ART. 1168. When the obligation consists in not doing,
and the obligor does has been forbidden him, it shall
also be undone at his expense, (1099a)
Obligation of the Debtor NOT To Do –
This is negative personal obligation which is consisting
of an obligation, of not doing something. If the debtor
does what has been forbidden him to do, the oblige can
ask the debtor to have it undone. If it is impossible to
undo what was done, the remedy of the injured party is
for an action of damages.
BREACH OF OBLIGATION
- WHERE A PARTY FAILS TO DO WHAT IS OBLIGED
OF HIM/ HER
OBLIGATION OF THE DEBTOR NOT TO DO
Example- A bought a land from B. It was stipulated that
A would not construct a fence in a certain portion of his
land adjoining that land sold by B. Should A construct a
fence in violation of the agreement, B. can bring an
action to have the fence remove at the expense of A.
BREACH OF OBLIGATIONS:
1. Voluntary – debtor in the performance of the
obligation is guilty of:
(a) Fraud (Dolo); or
(b) Negligence (Culpa); or
(c) Delay (Mora): or
(d) Contravention of the tenor of the obligation
Note: Debtor is liable for damages.
2. Involuntary – debtor is unable to comply with his
obligation due to fortuitous event/s.
FORTUITOUS EVENT – An event which could not be
foreseen, or which though foreseen, was inevitable.
Note: Debtor is NOT liable for damages.
DELAY (Mora)
- means a legal delay or default and it consists of failure
discharge a duty resulting to one’s own disadvantaged.
— ART. 1169. Those oblige to deliver or to do
something incur in delay from the time the oblige
judicially or extra – judicially demands from theme 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 declares;
or
( 2 ) When from the nature and the circumstances of the
obligation it appears that the destination of the time
when the thing is to be delivered or the service is to
rendered was controlling motive for the establishment of
the contract; or
( 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 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.
(1100a)
The debtor incurred delay if:
—The debtor fails to perform his obligation when it falls
due; and
— A demand has been made by the creditor judicially or
extra judicially.
Example – Gaya obliged herself to deliver a determinate
horse to Tito on June 20. this year. Gaya failed to
delivered on the agreed date, Is Gaya already on delay
on June 20, only when Tito makes a judicial or extra-
judicial demand and from such date of demand when
Gaya is on default or delay.
However, there are instances when the demand by the
Creditor is not necessary to place the debtor on delay:
1. When the obligation expressly so provides
The mere fixing of the period is not sufficient to
constitute a delay. An agreement to the effect that
fulfillment or performance is not made when the
obligation becomes due, default or delay by the debtor
will automatically arise.
2. When the law so provides
The express provision of law that a debtor is in default.
For instance, taxes must be paid on the date prescribed
by law, and demand is not necessary in order that the
taxpayer is liable for penalties.
3. When time is of the essence
Because time is the essential factor in the fulfillment of
the obligation. Example, Gaya binds herself to sew the
wedding gown of Maya to be used by the latter on her
wedding date. Gaya did not deliver the wedding gown
on the date agreed upon. Even without demand, Gaya
will be in delay because time of the essence.
4. When demand would be useless
—When the debtor cannot comply his obligation as
when it is beyond his power to perform. Like when the
object of the obligation is lost or destroyed through the
fault of the debtor, demand is not necessary.
6. In a reciprocal obligation, from the moment one
of the parties fulfills his obligation, delay to the
other begins
— For instance, in a contract of sale, if the seller delivers
the object to the buyer and the buyer does not pay, then
delay by the buyer begins and vice versa, if the buyer
pays and the seller did not deliver the object, then the
seller is on delay.
Kinds of Delay
• Mora solvendi – delay on the part of the debtor.
• Mora accipiendi – delay on the part of the creditor,
like when the creditor unjustifiably refused to accept
payment at the time it was due, is in delay.
• Compensatio morae – delay both parties in a
reciprocal obligation.
CASES ON DELAY
• 1. Adiarte v. Court of Appeals, 92 Phil. 758
• 2. Manalac v. Garcia, 76 Phil. 216
• 3. Siuliong v. Ylagan, 43 Phil. 393
ART. 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. (1101)
ART. 1171. Responsibility arising from fraud is
demandable in all obligations. Any waiver of an action
for future fraud is void. (1120a)
ART. 1172. Responsibility arising from negligence in the
performance of every king of obligation is also
demandable, but such liability may be regulated by the
courts, according to the circumstances. (1130)
ART. 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.
If the law or contract does not state the diligence of
which is to be observed in the performance, that which
is expected of a good father of a family shall be
required. (1104a)
Sources of liability for damages:
1. Fraud (dolo) – is the intentional deception made by
one person resulting in the injury of another.
—The fraud referred to is incidental fraud, that is, fraud
incident to the performance of a pre-existing obligation.
2. Negligence (culpa) – consists in the omission by the
obligor of that diligence which is required by the nature
of the obligation and corresponds with the
circumstances of the person, of the time and of the
place. (Art. 1173, NCC)
3. Delay (Mora) – like when there has been judicial or
extra-judicial demand and the debtor does not comply
his obligation, delay will occur.
4. In contravention of the tenor of the obligation –
refers to the violation of the terms and conditions or
defects in the performance of the obligation, like when a
landlord fails to maintain a legal and peaceful
possession of a tenant being leased by the latter
because the landlord was not the owner and the real
owner wants to occupy the land, there is contravention
of the tenor of the obligation.
Other sources of liability for damages
• Loss of the thing with the fault of debtor.
• Deterioration with the fault of debtor. (Art. 1189)
KINDS OF DAMAGES
(1) Moral
(2) Exemplary
(3) Nominal
(4) Temperate
(5) Actual
(6) Liquidated
1. Moral damages – include physical sufferings, mental
anguish, fright, serious anxiety, besmirched reputation,
wounded feeling, moral shock, social humiliation and
similar injury.
2. Exemplary damages – imposed by way of example
or correction for the public good.
— Like in quasi-delicts, if the defendant acted with gross
negligence. (Art. 2231, NCC)
3. Nominal damages – are adjudicated in order that a
right of the plaintiff, which has been violated by the
defendant, may be vindicated or recognized and not for
the purpose of indemnifying the plaintiff for any loss
suffered by him. (Art. 2221, NCC)
4. Temperate or moderate damages – are more than
nominal but less than compensatory damages may be
recovered when the courts finds that its amount cannot,
from the nature of the case, be proved with certainty.
Pecuniary loss means loss of money, or of something
by which money or something of money value may be
acquired. (Black Law Dict. P. 1131)
5. Actual or compensatory damages – except as
provided by law, or a stipulation, one is entitled to an
adequate compensation only for such pecuniary loss
suffered by him as he has duly proved. (Art. 2199, NCC)
— Damages may be recovered:
— For loss or impairment of earning capacity in cases of
temporary or permanent personal injury;
— For injury, to the plaintiff’s business standing or
commercial credit.
6. Liquidated damages – are those agreed upon by
parties to a contract to be paid in case of breach
thereof. (Art. 2226, NCC)
Distinguish Fraud (Dolo) from Negligence (culpa)
FORTUITOUS EVENTS
FORTU ITOUS EVENT – I S AN EVENT WHICH
CANNOT BE FORESEEN WHICH THOUGH
FORESEEN IS INEVITABLE.
ART. 1174. Except in cases expressly specified by the
law, or when it is 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 (1105a)
A FORTUITOUS EVENT MAY EITHER BE AN ACT
OF MAN OR ACT OF GOD
• Act of Man – strictly speaking, fortuitous event is an
event independent of the will of the obligor but not of
other human wills.
• Act of God – They refer to what is called majeure or
those events which are totally independent will of every
human being.
Fortuitous event proper are acts of God such as
volcanic eruption, earthquake, lightning, etc. is now
similar with force majuere or acts of man such as
conflagration, war, robbery, etc.
Requisite necessary to constitute fortuitous event
—The failure of the debtor to comply with the obligation
must be independent from the human will;
—The occurrence makes it impossible for the debtor to
fulfill the obligation on a normal manner, and the obligor
did not take part as to aggravate the injury of the
creditor. (Vasquez v.C.A. G.R. 42926)
2. As a general rule, no person shall be held
responsible for fortuitous events
— Example – Gaya obliged herself to deliver a
determine car to Tito on Dec. 30, 1998. Before the
arrival of the period, the car was struck by lightning and
was totally destroyed. Gaya cannot be held responsible
for the destruction of the car, hence her obligation to
deliver is extinguished.
— Exceptions (when the person is responsible despite
the fortuitous even).
a. When the law expressly so provides, such as:
—The debtor is guilty of fraud, negligence or in
contravention of the tenor of the obligation. (Art, 1170,
NCC)
—The debtor has proved to deliver the same thing to
two or more persons who do not have the same
interest. ( Art. 1165,NCC )
—The thing to delivered is generic.
—The debtor is guilty of default or delay. ( Art.
1169,NCC )
—The debtor is guilty of concurrent negligence.
c. When declared by stipulation;
e. When the nature of obligation requires the
assumption of risk. An example of this is a contract of
insurance.
CASES ON FORTUITOUS EVENTS
• 1. National Power Corp. v. Court of Appeals, G.R.
Nos. 103442-45, 21 May 1983
• 2. PHILCOMSAT v. Globe Telecom, G.R. No. 147324,
25 May 2004
ART. 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.
(1110a)
Presumption means “the inference as to the existence
of a certain fact which if not contradicted is considered
as true.”
The presumption in the above article is a disputable
presumption, whereby one which can be contradicted
by presenting proof to the contrary while a conclusive
presumption does not admit any evidence or proof,
hence, it is considered as a fact.
— Presumption under this article:
1. Receipt of the principal, without reservation as to the
interest, shall give rise to the presumption that the said
interest has been paid.
2. When the creditor issues a receipt of a later
installment of a debt without reservation as to prior
installment is presumed to have been paid.
— ART. 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. (1111)
— Rights of Creditors –
In order to satisfy their claims against the debtor,
creditors have the following successive rights:
1. to levy by attachment and execution upon all the
property of the debtor, except such as are exempt by
law from execution;
3. to exercise all the rights and actions of the debtor,
except, such as are inherently personal to him; and
5. to ask for the rescission of the contracts made by the
debtor in fraud of their rights.
RIGHTS OF CREDITOR
SPECIFIC
• To compel specific performance.
• To recover damages, in case of breach of the
Obligation and Entitlement to the fruits.
GENERIC
• To ask for the performance of the
obligation.
• To ask that the obligation be complied
with at the expense of the debtor.
• To recover damages, in case of breach of the
obligation.
— ART. 1178. Subject to the laws, all rights acquired in
virtue of an obligation are transmissible, if there has
been no stipulation to the contrary. (1112)
— As a rule, all rights acquired in virtue of an obligation
are transmissible, except in the following cases:
1. When the law so provides.
3. When the parties stipulate otherwise – by agreement
of parties that the rights acquired by them will not be
transmitted to any other person.
5. When the obligation is purely personal in nature.