NATURE AND EFFECT OF

OBLIGATIONS

Engr. Jasper Meynard P. Arana

Faculty, Electronics Engineering Department

1
Article 1163
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.

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

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Article 1163
Example:
If Ss obligation is to deliver to B a Rolex, S can deliver any
watch as long as it is a Rolex with calendar.
But if Ss obligation is to deliver to B a particular watch such
as Rolex GMT Master II ($33,250), 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.

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Article 1163
Duties of the debtor in an obligation to give a determinate
thing
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.
Deliver the fruits of the thing. discussed under Article 1164
Deliver the accessions and accessories. discussed under Article
1166
Deliver the thing itself.
Answer for damages in case of non-fulfillment or breach.
discussed under Article 1170

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Article 1163
Duties of the debtor in an obligation to give a generic thing
To deliver a thing which is of the quality intended by the parties
taking into consideration the purpose of the obligation and other
circumstances
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
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.
Kinds of fruit mentioned by law
Natural fruits are the spontaneous products of the soil, and the
young and other products of animals.
Grass; all trees and plants on lands produced without the intervention of
human labor
Industrial fruits are those produced by lands of any kind through
cultivation or labor.
Sugar cane; vegetables; rice; and all products of lands brought about by
reason of human labor
Civil fruits are those derived by virtue of a juridical relation.
Rents of buildings, price of leases of lands and other property and the
amount of perpetual or life annuities or other similar income

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Article 1164
Meaning of Personal right and Real right:
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.
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.

The creditor is entitled to the fruits of the thing to be delivered

from the time the obligation to make delivery arises

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Article 1165
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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Article 1165
Remedies of creditor in real obligation:
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:
demand specific performance or fulfillment (if it is still possible) of
the obligation with a right to indemnity for damages: or
demand rescission or cancellation (in certain cases) of the obligation
also with a right to recover damages (Article 1170.); or
demand payment of damages only, where it is the only feasible
remedy

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Article 1165
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).

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Article 1165
Remedies of creditor in real obligation:
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.

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Article 1165
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.

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Article 1165
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.
Accessions are the fruits of a thing or additions to or
improvements upon a thing (the principal).
House or trees on a land; rents or a building; air-conditioner in a car;
profits or dividends accruing from shares of stocks, etc.
Accessories are things joined to or included with the principal
thing for the latters embellishment, better use, or completion
Key of a house; frame of a picture; bracelet of a watch; machinery in
a factory; bow of a violin

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Article 1165
Right of creditor to accessions and accessories:
The general rule is that all accessions and accessories are
considered included in the obligation to deliver a determinate
thing although they may not have been mentioned.
Unless otherwise stipulated, an obligation to deliver the
accessions or accessories of a thing does not include the latter.

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Article 1167
Article 1167. If a person obliged to do something fails to do
it, the same shall be executed at his cost.
The 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.

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Article 1167
It contemplates three situations:
The debtor fails to perform an obligation to do;
The debtor performs an obligation to do but contrary to the terms
thereof; or
The debtor performs an obligation to do but in poor manner.
Remedies of creditor in positive personal obligation:
If the debtor fails to comply with his obligation to do, the creditor
has the right to:
to have the obligation performed by himself, or by another, unless
personal considerations are involved, at the debtors expense; and
to recover damages (Article 1170)
In case the obligation is done in contravention of the terms of the
same or is poorly done, it may be ordered (by the court upon
complaint) that it be undone if it is still possible to undo what was
done.

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Article 1167
Example:
X binds himself to construct a house for B. Among other things, it
was stipulated that the house shall have 3 bedrooms, each of
which to have an area of 5 meters by 4 meters and that the
kitchen shall be painted all white. If X does not construct the
house, B may ask C to construct the house at the expense of X.
Suppose X constructed the house but the size of the bedroom is
not 5 meters by 4 meters or the kitchen is not painted all white.
In this case, B can ask to have it done according to the
specifications. If X refuses, the obligation may be performed by C
at the expense of X.
Now, if the kitchen was painted white but the painting was
poorly done, B may ask X that it be undone or, in case of Xs
refusal, he may ask C to paint the kitchen at the expense of X.

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Article 1167
Example:
If the obligation contracted by X is to sing in a concert and
he fails to comply with his obligations, the performance of
the same by another would be impossible or would result to
be so different that the obligation could not be considered
performed.
Here the personal qualification of X is the determining
motive for the contract. In this case, the only practical
remedy of B is indemnification for damages.

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Article 1168
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.
Example:
B bought a land from S. it was stipulated that S would not
construct a fence on a certain portion of his land adjoining
that sold to B.
Should S construct a fence in violation of the agreement, B
can bring an action to have the fence removed at the
expense of S.

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Article 1168
Remedies of creditor in negative personal obligation:
In an obligation no to do, the duty of the obligor is to abstain from
an act. Here, there is no specific performance. The very obligation
is fulfilled in not doing what is forbidden. Hence, in this kind of
obligation the debtor cannot be guilty of delay.
As a rule, the remedy of the obligee is the undoing of the
forbidden thing plus damages. However if it is not possible to undo
what was done, either physically or legally, or because of the rights
acquired by third persons who acted in good faith, or for some
other reason, his remedy is an action for damages caused by the
debtors violation of his obligation.

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