Operational Definition of Terms

 Bonus Pater y Familia. The diligence of a good father of a family.

 Genus Nunquam Perit. Genus never perishes.

 “Accessory follows the principal.” It means that accessions and accessories are
included in the obligation to deliver.

 Fault or Negligence. The failure to observe the degree of care, precaution, and
vigilance which the circumstances justly demand, whereby such
other person suffers injury [US v. Barrias, 23 Phil 4334].
 Fortuitous Event. Any event which cannot be
foreseen, or which, though foreseen, is inevitable. The
happening, independent of the will of the debtor,
makes the normal fulfillment impossible. The
presence of the requisites constitutive of a fortuitous
event may exempt an obligor of liability.

Damages. Signify the monetary compensation

awarded to a party for loss or injury resulting
from a breach of contract or obligation by the
other. The purpose of this is to place the
innocent party in the same position if the
contract has not been breached.
• Pure Obligation. One which is not subject to a suspensive or
resolutory condition, and no specific date is mentioned for
its fulfillment, thus, immediately demandable.

• Conditional Obligation. An obligation that is subject to a

condition, either a suspensive or resolutory one.

• Suspensive Condition. The happening of which will give rise

to an obligation.
• Resolutory Condition. The happening of which will
extinguish an obligation.

• Potestative Condition. When the fulfillment of the

condition depends upon the sole will of the debtor, the
conditional obligation shall be void.

• Doctrine of Constructive Fulfillment. The condition

shall be deemed fulfilled when the obligor voluntarily
prevents its fulfillment. [Art. 1186]
• Unilateral obligations. Only one party is obliged to
perform.

• Bilateral obligations. Both parties are bound to perform.

They are both debtors and creditors of each other.

• Alternative Obligations. There are several prestations

due but the performance or delivery of one is sufficient.

• Facultative Obligations. Only one prestation is due but

the debtor, by his choice, may render another as
substitute.
• Joint Obligation. A kind of obligation where the entire obligation must be
paid proportionately by the debtors, or be demanded proportionately by
the creditors.

• Solidary obligation. A kind of obligation where each debtor is bound to

pay the entire obligation, or each creditor has the right to demand for the
entire obligation.

• Divisible obligation. The object of which is capable of partial fulfillment.

• Indivisible Obligation. The object of which is incapable of partial

fulfillment.

• Obligation with a penal clause. It consists of an accessory obligation to

pay a stipulated indemnity in case of breach in the principal obligation.
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.

This provision refers to an obligation to give a specific or determinate

thing.
A thing is GENERIC OR INDETERMINATE A thing is SPECIFIC OR DETERMINATE when
when indicated by its kind without being it is individualized and susceptible of
distinguished from others of the same specification or designation. It cannot be
kind. It becomes determinate or substituted without the consent of the
determinable once the obligation is creditor.
performed.
Ex. The dog named Scooby Doo
Ex. A Dog
 Duties of a debtor in obligation to give a Specific or
Determinate
Thing:
1. Observe the diligence of a Good Father of a Family(supra)- The
ordinary care or diligence of an average (reasonable prudent)
person exercised over his own property unless the law provides
otherwise; this is also considered as the standard degree of care.
2. Deliver the fruits of the thing [Art. 1164];
3. Deliver the accessions and accessories [Art. 1166];
4. Deliver the thing itself [Art. 1497]; and
5.Answer for damages in case of non-fulfillment or breach [Art.
1170].
 Duties of a debtor in obligation to give a Generic or
Indeterminate Thing:
1. Deliver the thing in a quality intended by the parties
considering the purpose and other circumstances [Art.
1246]; and
2. Liable for damages in cases of fraud, negligence, delay,
or contravention of the terms in the performance of
obligation [Art. 1170].
 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.

Different kinds of FRUITS:

i. Natural - Spontaneous products of ii. Industrial -Produced by lands of any iii. Civil -Products derived by virtue of
soil and offspring of animals kind with human intervention through juridical relation
Example: weeds, trees produced cultivation or by labor Example: rents, dividends, royalties
without human intervention Example: vegetables, rice, planted and the like
with human labor
When the obligation to deliver the fruits arises:
a. From the perfection of a contract. Perfection refers to the birth of the
contract or the meeting of the minds of the parties [Art. 1305]; and
b. If the condition is subject to a suspensive condition or period, upon the
fulfillment of the condition or arrival of the term except in contract of sale.
Real V. Personal Right
• A personal right is the right to demand • A real right is a right over a specific
(by the creditor) from another thing without a definite passive subject
(debtor-passive subject) the latter’s against whom the right may be
obligation to give, to do or not to do. personally enforced.

Note: The right to the fruits of the thing shall ONLY BE PERSONAL, and ONLY UPON DELIVERY of the thing,
fruits, accessory and accession shall the creditor acquire a REAL right over it.
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 v. Accessories
Accessions -fruits of a thing or additions or Accessories -things joined or included for
improvements on the principal thing. the principal thing’s better use or
-Not necessarily together with the completion
principal thing -Must go together with the principal thing
-Usually of significant value -Lesser value or replaceable

Ex. Aircon of car

Ex. Key of car

General Rule: ALL accessions and accessories are considered included in the obligation to deliver a
determinate thing.
Principle: The accessory follows the principal.
Exception: When the accessions and accessories are excluded from the agreement.
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; or
(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; 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 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.
Kinds of Delay:
As to the performance of obligation
i. Ordinary - Merely the failure to perform the obligation on time
ii. Legal -also called a Default/Mora; the failure to perform the obligation
on time which constitutes breach of obligation.

Kinds of Legal Delay/Default/Mora:

a. Mora Solvendi -delay on the part of the debtor
b. Mora Accipiendi -delay on the part of creditor
c. Compensatio Morae -delay of OBLIGORS in reciprocal obligation like a sale.

General Rule: Delay by the debtor begins only from the moment of demand (not mere
reminder or notice) made by the creditor upon the debtor to comply with his obligation
whether judicial (when a complaint is filed) or extra-judicial (when made outside of court,
orally or in writing).
What are the conditions before mora solvendi
effects may arise:
1. Failure of the debtor to perform his obligation on
the date agreed upon;
2. Demand is made; and
3. Failure of the debtor to comply.
Effects of Delay:
a. The debtor is guilty of a breach;
b. Liable to the creditor for interest in case of money
or damages in others; and
c. Liable even for fortuitous events when its
determinate thing.
In Compensation Morae
Delay of the obligor cancels the delay of
obligee thus no actionable default on both
parties. However, if the delay of one party is
followed by the other, the liability of the first
infractor shall be equitably reduced by the courts.
If it cannot be determined as to who is the first
infractor, each shall bear his own damages.
An Exception to General Rule: When Demand
is NOT necessary to put the debtor in delay.
1. When the obligation provides
2. When the law provides
3. When time is of the essence
4. When demand would be useless
5. When there is a performance by a party in
reciprocal obligations
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.

Four (4) grounds of liability for Damages:

i. Fraud (deceit or dolo)
ii. Negligence (fault or culpa)
iii. Delay (mora)
iv. Contravention of the terms of the agreement
Fraud. The deliberate or willful evasion of
the normal fulfillment of the obligation. It implies
malice or dishonesty but not tantamount to
mistakes or errors of judgment in good faith. An
intentional perversion of truth in order to induce
another to part with something of value or to
surrender a legal right. In this article, fraud pertains
to incidental fraud [dolo incidente].
NOTICE!!!
Waiver of action for future fraud
(incidental) is void. It is as if no waiver
being against the law and public policy. Fraud is
deemed serious and evil to be discouraged. Waiver
of action of past fraud, however, is valid as an act of
generosity of the victim. The waiver must be
expressed in clear language with no doubt as to
renunciation of his right against the obligor.
Negligence. Also called a fault.
It consists in the omission of diligence
required by the nature of the obligation
and corresponds with the
circumstances of the person, of the
time and of the place. If the law does
not require a certain degree of care, the
standard degree expected of a good
father of the family shall be observed.
Kinds of Diligence Required:
i. That agreed by the parties, orally or in writing;
ii. In the absence of agreement, that required by
law i.e. extraordinary diligence for common
carriers; and
iii. If both law and parties are silent, the
diligence of a good father of the family.
NOTICE!!!
If negligence is gross or there is a failure to observe
even slight care showing bad faith, it is equivalent
to fraud and be treated as such.
Waiver of future negligence may be
renounced except when the nature of the
obligation requires extraordinary diligence like
common carriers.
Kinds of Negligence [Culpa]:
i. Contractual Negligence - Culpa contractual; presumed negligence in
violation of the contracts/agreement. It is not
a source of obligation rather makes the debtor liable for damages.
ii. Civil Negligence -Culpa aquiliana; also called as tort; a source of
obligation
iii. Criminal Negligence -Culpa criminal; negligence resulting in the
commission of the crime; Based on Art. 100
of Revised Penal Code or Art. 2176 of Civil Code.

If the creditor is also negligent and was the immediate and proximate cause of his
injury, he cannot recover damages. But if his negligence is merely contributory, the
court may mitigate the damages to be awarded.
Delay [Supra. Art. 1169]

Contravention of the Terms of

agreement. Violation of the terms
and conditions of agreement must
not be due to a fortuitous event.
Article 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.

2 Types of Fortuitous Event:

a. Acts of Man Ex.War, fire, robbery, etc.
b. Acts of God Ex. Earthquake, lightning, shipwreck, flood, etc., also called a Force
Majeure.

2 Kinds of Fortuitous Events under Contract of Lease:

a.Ordinary -common and reasonably foreseen, ex. rain
b.Extraordinary -uncommon and could not be reasonably foreseen
ex. Earthquake, unusual flood, war
Requisites of a Fortuitous Event:
i. The event is independent of the human will or at least
of debtor’s will;
ii. The event could not be foreseen, or if foreseen is
inevitable;
iii. The event makes it impossible for the debtor to
comply in a normal manner; and
iv. The debtor must be free from any participation in, or
the aggravation of, the injury to the creditor, that is,
there is no concurrent negligence on his part.
General Rule: A person is NOT liable for the loss or
damage caused to another resulting from the non-
performance of his obligation due to fortuitous
events.

Exceptions: [Still liable despite the fortuitous event]

a. when expressly specified by law;
b. when by stipulation or agreement of the parties;
c. when the nature of the obligation requires the
assumption of risk