Atty. Michael Vincent Z.

Cauilan
NOTES ON NATURE AND EFFECTS OF OBLIGATIONS
fruits thereof
Purposes of Obligations to • Once the thing and fruits are
Give 1. To transfer ownership delivered, the creditor acquires
2. To transfer mere possession or a real right over them, a right
right which is enforceable against
the whole world
Things to be delivered in an
obligation to give Personal Right vs. Real Right
• The thing may be real or • A personal right is a right
personal property, consumable pertaining to a person to
or non-consumable, fungible or demand from another the
non-fungible, or it may be fulfillment of a prestation to
generic or determinate things give, to do or not to do. It is a
jus ad rem or a right
Generic vs. Specific Thing enforceable only against a
• A generic thing is referred to definite person or group of
only by its class or genus persons
• A determinate or specific thing • A real right is a right
is one that is particularly pertaining to a person over a
designated or physically specific thing without a passive
segregated from the members subject individually determined
of its class against whom such right may
be personally enforced. It is a
When does the obligation to jus in rem or a right
deliver arise enforceable against the whole
• In case of obligations arising world
from law, quasi-contracts,
delicts and quasi-delicts, the Rights of the creditor in
obligation to deliver arises from determinate obligations
the time designated by the 1. To compel specific
provisions of the Civil Code or performance 2. To recover
of special laws creating or damages for breach of the
regulating them obligation
• In case of obligations arising
from contracts, the obligation Specific Performance
to deliver arises from the • The creditor may compel the
moment of perfection of the debtor to make the delivery
contract, as a general rule. (Art. 1165, par. 1 of the Civil
• In case of a contrary Code)
stipulation of the parties with • The debtor of a thing cannot
respect to the time when the compel the creditor to receive a
thing or fruits shall be different one, although the
delivered, such stipulation latter may be of the same value
shall govern or more valuable than that
which is due (Art. 1244, par. 1
Nature of the right of the creditor of the Civil Code)
• Before delivery, the creditor, in • Mere pecuniary inability to
obligations to give, has merely a fulfill the agreement does not
personal right against the debtor – discharge the obligation
a right to ask for
delivery of the thing and the
 Page 1 of 10
Atty. Michael Vincent Z. Cauilan
NOTES ON NATURE AND EFFECTS OF OBLIGATIONS
complied with at the expense of
such debtor
Recover Damages • Instead of the debtor, it is
• Besides the right to compel another person who will
specific performance, the substitute him in the
creditor also has the right to performance of an obligation
recover damages from the Obligations of the debtor in
debtor in case of breach of the determinate obligations
obligation through delay, 1. To perform the obligation
fraud, negligence or specifically
contravention of the tenor 2. To take care of the thing with
thereof the proper diligence of a good
• The creditor may file an action father of a family
against debtor for specific 3. To deliver all accessions and
performance under Art. 1165 accessories of the thing, even
and, at the same time, avail of though they may not have been
the action for damages against mentioned
the said debtor under Art. 4. To be liable for damages in
1170 case of breach of the
obligation
Rights of the creditor in generic
obligations To perform the obligation
1. To ask for performance of the specifically
obligation • In obligations to give a
2. To ask that the obligation be determinate thing, the obligor
complied with at the expense of or debtor binds himself to
the debtor deliver to the creditor a thing
3. To recover damages for breach or object which is particularly
of the obligation designated or physically
segregated from all others of
Performance of the obligation • In the same class
indeterminate or generic obligations • The debtor cannot comply with
to give, the creditor can only ask for his obligation by delivering a
delivery of a thing or object thing which is different from that
belonging to the class or genus which is designated
stipulated
which must be neither or Diligence
superior nor inferior quality • This obligation is applicable
only to determinate obligations •
Compliance with the obligation at As a general rule, the standard of
the expense of the debtor care which must be
• This is known as substitute exercised for the preservation
performance of the thing must be the
• If the debtor refuses or is diligence of a good father of a
unable to comply with his family (bonus pater familias) •
obligation, the creditor can The good father of a family is
even ask that the obligation be
 called a reasonable man or a is required to use the same
man of ordinary diligence or degree of care that a
prudence reasonably careful person who
has the same physical
Diligence required of disabled disability would use
persons
• One who is physically disabled
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Atty. Michael Vincent Z. Cauilan
NOTES ON NATURE AND EFFECTS OF OBLIGATIONS
Obligations of the debtor in
Exceptions to the due diligence generic obligations
requirement 1. To deliver a thing which is
1. When the law requires a neither of superior nor inferior
different degree of diligence – quality
Art. 1733 and 1755 of the Civil 2. To be liable for damages in
Code requires common carriers case of breach of the obligation
to exercise extraordinary or by reason of delay, fraud,
utmost diligence in the negligence or contravention of
vigilance over goods and the tenor thereof
passengers that they
contracted to carry
2. When the parties agree on or Genus Nunquam Peruit
stipulate a different standard • The genus of a thing can never
of care perish
• In an obligation to deliver a
Effect of failure to exercise due generic thing, the loss or
diligence destruction of anything of the
1. The debtor may be liable for same class or genus as that
damages which constitutes the object
2. The debtor is liable even if shall not extinguish the
there was a fortuitous obligation
event • In an obligation to deliver a
Accessions and Accessories • The determinate thing, the loss or
destruction of the object before
term accessions signifies all those delivery makes the debtor
things which are liable for such loss or
produced by the thing which is destruction, unless the loss or
the object of the obligation as destruction is caused by a
well as all of those which are fortuitous event
naturally or artificially
attached thereto Effects of breach in obligations to
• The term accessories signifies do
all of those things which have • In obligations to do, if the
for their object the debtor fails to do that which he
embellishment, use or has obligated himself to do, the
preservation of another thing creditor can have the
which is more important and obligation performed or
to which they are not executed at the expense of the
incorporated or attached. former, and, at the same time,
Those things which are demand damages by reason of
necessary or convenient for the the breach
perfection of another thing • The creditor does not possess
 the power to compel the obligor 1. To have the obligation
to comply with his obligation performed or executed at the
expense of the debtor
If there has been a performance of 2. To ask that what has been
the obligation, but in poorly done be undone
contravention of the tenor 3. To recover damages because of
thereof, the following rights are the breach of the obligation
available to the creditor:

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Atty. Michael Vincent Z. Cauilan
NOTES ON NATURE AND EFFECTS OF OBLIGATIONS
Breach of Obligations Voluntary breach through default
• The breach of an obligation or mora
may either be voluntary or • Default or mora signifies the
involuntary idea of delay in the fulfillment
• It is voluntary is the debtor in of an obligation with respect to
the performance of his time
obligation is guilty of default, Kinds of default or mora
fraud, or negligence, or in any 1. Mora solvendi or delay of the
manner contravenes the tenor debtor to perform his
thereof obligation
• It is involuntary if he is unable 2. Mora accipiendi or delay of the
to comply with his obligation creditor to accept the delivery
because of an event which of the thing
cannot be foreseen, or which, 3. Compensatio morae or delay of
though foreseen, was inevitable • the parties in reciprocal
In voluntary breach, the debtor is obligations
liable for damages
Kinds of mora solvendi
Requirements before the debtor 1. Mora solvendi ex re – when the
can be considered in default 1. obligation is an obligation to
The obligation is positive – to give give
or to do 2. Mora solvendi ex persona –
2. The obligation is demandable when the obligation is an
and liquidated obligation to do
3. The debtor delays for reasons
imputable to him Default in positive obligations •
4. There must be demand, In obligations to give or to do,
whether judicial or the debtor incurs delay from the
extrajudicial, and the debtor time the creditor demands from
failed to comply him the fulfillment of the
obligation
Liquidated • Demand may be judicial or
• A claim is considered extrajudicial
liquidated when the amount and • It is judicial if the creditor files
time of payment is fixed • If a complaint against the debtor
acknowledged by the debtor, for the fulfillment of the
although not in writing, the obligation
claim must be treated as • It is extrajudicial id the
liquidated creditor demands from the
debtor the fulfillment of the
 obligation either orally or in writing

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Atty. Michael Vincent Z. Cauilan
NOTES ON NATURE AND EFFECTS OF OBLIGATIONS
which are created or
Instances when demand by the established at the same time,
creditor is not necessary in order out of the same cause, and
that delay may exist which result in mutual
1. When the obligation or the law relationships of creditor and
expressly so declares debtor between the parties
2. When from the nature and the • The fulfillment of an obligation
circumstances of the obligation by one party depends upon the
it appears that the designation fulfillment of the obligation by
of the time when the thing is to the other
be delivered or the service is to • One party incurs delay from
be rendered was a controlling the moment the other party
motive for the establishment of fulfills his obligation, while he
the contract. In other words, himself does not comply or is
time is of the essence not ready to comply with what
3. When demand would be is incumbent upon him
useless, as when the obligor Effect of default
has rendered it beyond his • Once the debtor has incurred
power to perform delay, he can be held liable by
Default in negative the creditor for damages
• If the obligation consists in the
obligations • In negative payment of a sum of money and
obligations or obligations not to the debtor incurs delay, the
do, the indemnity for damages
debtor cannot possibly incur shall be the payment of the
delay interest agreed upon, and in
• Fulfillment and violation are the absence of stipulation, the
possible, but not default legal interest
• Such peculiarity is what • Interest due shall earn legal
differentiates this class of interest from the time it is
obligations from positive judicially demanded, although
obligations the obligation may be silent on
this point
Default in reciprocal obligations
• Reciprocal obligations are those
 performance of an obligation and
Voluntary breach through fraud or fraud in the constitution or
dolo establishment of an obligation
• Fraud or dolo consists in the 1. The first is present only during
conscious and intentional the performance of a pre
proposition to evade the existing obligation, while the
normal fulfillment of an second is present only at the
obligation time of the birth of the
• This type of fraud, which is obligation
present during the 2. The first is employed for the
performance of an obligation, purpose of evading the normal
must not be confused with the fulfillment of an obligation,
causal or incidental fraud, while the second is employed
which is present at the time of for the purpose of securing the
the birth of an obligation consent of the other party to
enter into the contract
Distinctions between fraud in the

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Atty. Michael Vincent Z. Cauilan
NOTES ON NATURE AND EFFECTS OF OBLIGATIONS
by the nature of the obligation • If
3. The first results in the non the law or contract does not state
fulfillment or breach of the the diligence which is to be
obligation, while the second observed in the performance of
results in the vitiation of his the obligation, that which is
consent expected of a good father of a
4. The first gives rise to a right of family shall be required
the creditor to recover damages • Civil negligence may either be
from the debtor, while the culpa contractual or culpa
second gives rise to a right of aquiliana (quasi-delict)
the innocent party to ask for
the annulment of the contract Kinds of Negligence
if the fraud is causal or to 1. Culpa Aquiliana – this is quasi
recover damages if it is delict where the negligence
incidental itself is the independent source
of obligation
Effect of Fraud 2. Culpa Contractual – This is
• If there is a breach or non negligence in the performance
fulfillment of the obligation by of contractual obligation
reason of fraud on the part of 3. Culpa Delicta – This is
the debtor, he can be held negligence that results in
liable for damages criminal liability
• As a ground for damages,
malice or dishonesty is implied • Distinctions between culpa
Waiver for future fraud is contractual and culpa aquiliana
contrary to law and public 1. Regarding definition: Culpa
policy contractual may be defined as the
fault or negligence of the debtor by
Voluntary breach through virtue of which he is unable to
negligence or culpa perform his
• Negligence is simply the obligation arising from a pre
absence of due care required existing contract because of
 the omission of the diligence substantive and independent
required by the nature of the 3. Regarding the relationship of
obligation, while culpa the parties: in culpa
aquiliana may be defined as contractual, there is always a
the fault or negligence of pre-existing contractual
person who, because of the relation; in culpa aquiliana,
omission of the diligence there may or may not be a pre
required by the nature of the existing contractual relation
obligation, causes damage to 4. Regarding the source of the
another obligation: in culpa contractual,
2. Regarding the character of the the source of the obligation of
negligence of the defendant: in the defendant to pay damages
culpa contractual, the to the plaintiff is the breach or
negligence of the defendant is non-fulfillment of the contract;
merely an incident in the in culpa aquiliana, the source
performance of an obligation; is the defendant’s negligent act
in culpa aquiliana, it is or omission itself

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Atty. Michael Vincent Z. Cauilan
NOTES ON NATURE AND EFFECTS OF OBLIGATIONS
and intentional proposition to
5. Regarding the proof required evade the normal fulfillment of
for recovery: in culpa the obligation
contractual, proof of the • If there is intent to cause
existence of the contract and of damage or injury, there is
its breach or non-fulfillment is fraud. If there is merely
sufficient prima facie to abandonment, inattention,
warrant a recovery; in culpa carelessness or lack of
aquiliana, the negligence of the diligence, there is negligence
defendant must be proved
6. Regarding the availability of Effects of Negligence
due diligence as a defense: in • If the debtor is unable to
culpa contractual, proof of comply with his obligation
diligence in the selection and because of his fault or
supervision of employees is not negligence, the creditor can
available as a defense; in culpa hold him liable for damages
aquiliana, it is available as a • This liability subsists even if he
defense has been acquitted in a
criminal action charging him
Negligence vs. Fraud with a criminal offense based
• Negligence or culpa signifies an on his negligent act or
act or omission which is omission
voluntary in character and by Effect of Good Faith
virtue of which another person • If the debtor has acted in good
suffers damage or injury due to faith, he shall be liable only for
a failure to observe the natural and probable
diligence required by the consequences of the breach of
nature of the obligation the obligation and which the
• Fraud or dolo is the conscious parties have foreseen or could
 have reasonably foreseen at • Itis of utmost importance to
the time the obligation was determine whether the
constituted negligence of the creditor was a
proximate cause of the
Effect of Bad Faith accident or event which led to
• If the negligence of the debtor the injury or merely
shows bad faith, then the contributory to his own injury
debtor can be held liable for all
damages which may be Instances when damages can be
reasonably attributed to the mitigated
non-performance of the 1. Where the plaintiff himself has
obligation contravened the terms of the
contract
Effect of Contributory 2. Where the plaintiff has derived
Negligence • If there was some benefit as a result of the
contributory contract
negligence of the creditor, the 3. Where the loss would have
effect is to reduce or mitigate resulted in any event
the damages which he can 4. Where upon the filing of the
recover from the debtor as a action, the defendant has done
result of the breach of the his best to lessen the plaintiff’s
obligation loss or injury

Page 7 of 10
Atty. Michael Vincent Z. Cauilan
NOTES ON NATURE AND EFFECTS OF OBLIGATIONS
Voluntary breach to Classifications of Fortuitous
contravention of tenor of Event
obligation 1. Act of God – refers to an event
• Every debtor who fails in the which is absolutely
performance of his obligations is independent of human
bound to indemnify the intervention
creditor for damages caused 2. Force majeure – refers to an
thereby event which arises from
• The phrase “in any manner legitimate or illegitimate acts of
contravene the tenor” of the persons other than the obligor 3.
obligation includes not only Ordinary – refers to an event
any illicit act which impairs the which usually happens or
strict and faithful fulfillment of which could have been
the obligation, but also every reasonably foreseen
kind of defective performance 4. Extraordinary – refers to an
event which does not usually
Fortuitous Event happen and which could not
• An event which could not be have been reasonably foreseen
foreseen, or which, though Effect of fortuitous event upon
foreseen, was inevitable the obligation
• The presence of either element • If the debtor is unable to
of unforeseeability or comply with his obligation by
inevitability would be sufficient reason of a fortuitous event,
to classify the event as the general rule is that he is
fortuitous in character exempted from any liability
whatsoever
 • Theobligation is extinguished • debtor cannot be held liable in
This effect is only applicable to case of his inability to comply due
determinate obligations to a fortuitous event
1. When the debtor is in default
Requisites before fortuitous event 2. When the debtor promised the
can be applied same thing to two or more
1. The event must be independent persons who do not have the
of the will of the obligor or same interest
debtor 3. When there is stipulation that
2. The event must either be the debtor will not be excused 4.
unforeseeable or inevitable When there is assumption of
3. The event must be of such a risk as required by the nature of
character as to render it the obligation
impossible for the obligor or 5. When the thing to be delivered
debtor to fulfill his obligation in is generic
a normal manner 6. When the debtor is also at
4. The obligor or debtor must be fault, the fortuitous event is in
free from any participation in effect humanized
the aggravation of the injury 7. When the nature of the
resulting to the creditor obligation makes the debtor
liable (Ex: Insurance)
Exceptions to the rule that the
Page 8 of 10
Atty. Michael Vincent Z. Cauilan
NOTES ON NATURE AND EFFECTS OF OBLIGATIONS
• Consequently, they may be
8. When the law makes the alienated or assigned to third
debtor liable persons
9. Liability from delict
Exceptions to transmissibility of
Assumption of Risk rights
• This refers to a situation in 1. Where they are not
which the debtor, with full transmissible by their very
knowledge of the risk, nature, such as in the case of
voluntarily enters into some purely personal rights
relation with the creditor 2. Where there is a stipulation of
• This is based on the doctrine of the parties that they are not
volenti non fit injuria – no transmissible
wrong is done to one who 3. Where they are not
consents transmissible by operation of
• If the debtor enters into an law
obligation which by its very
nature involves the assumption Cases to Digest:
of risks, he shall be liable to 1. Cruzado vs. Bustos and
the creditor for breach even in Escaler (34 Phil 17)
case of fortuitous events 2. Gutierrez Repide vs. Afzelius
(39 Phil 190)
Transmissibility of Rights 3. Martinez vs. Cavives (25 Phil
• Rights of obligations or those 581)
rights which are acquired by 4. Causing vs. Bencer (37 Phil
virtue of an obligation are, as a 417)
general rule, transmissible in 5. Picart vs. Smith (37 Phil 809)
character 6. U.S. vs. Juanillo (23 Phil
 212) 7. Southeastern College, Phil 75)
Inc vs. 18. La Mallorca vs. De Jesus
Court of Appeals, et al. (292 (17 SCRA 23)
SCRA 422) 19. Juntilla vs. Fontanar (136
8. De Guia vs. Manila Electric SCRA 625)
Railroad and Light Company 20. Yu Tek Co. vs. Gonzales (29
(40 Phil 706) Phil 384)
9. Rakes vs. Atlantic Gulf and 21. Tan Chiong Sian vs.
Pacific Co. (7 Phil 359) Inchausti & Co. (32 Phil 152)
10. Government vs. Bingham 22. Limpangco vs. Yangco
(13 Phil 185) Steamship Co. (34 Phil 597) 23.
11. Government vs. Nakpil & Sons, et al. vs. CA, et
Amechazurra (10 Phil 637) 12. al. (144 SCRA 596)
Brown vs. Robert (40 Phil 990) 24. Austria vs. Court of
13. Lizares vs. Hernaez (40 Appeals (39 SCRA 527)
Phil 981) 25. Vasquez vs. Court of
14. Palacio vs. Sudario (7 Phil Appeals (138 SCRA 553)
275) 26. Estate of Hernandez vs.
15. Crame vs. Gonzaga (10 Luzon Surety, Co. (100 Phil
Phil 646) 388)
16. Ampang vs. Guinco 27. Eastern Shipping Lines,
Trans. Co. (92 Phil 1085) Inc. vs. Court of Appeals (234
17. Necesito vs. Paras (104 SCRA 78)

Page 9 of 10
Atty. Michael Vincent Z. Cauilan
NOTES ON NATURE AND EFFECTS OF OBLIGATIONS
28. National Power
Corporation vs. Court of
Appeals (225 SCRA 415)
Page 10 of 10