UNIVERSITY OF NUEVA CACERES

COLLEGE OF BUSINESS AND ACCOUNTANCY

LAW ON OBLIGATIONS
MADBOLIVAR
1.0 LAWS ON BUSINESS TRANSACTIONS

1.1 OBLIGATIONS
DEFINITION
An obligation is a juridical necessity to give, to do or not to do.
ELEMENTS OF AN OBLIGATION
(1) ACTIVE SUBJECT (Obligee/Creditor): The person who has the right or power to demand the
prestation.
(2) PASSIVE SUBJECT (Obligor/Debtor): The person bound to perform the prestation.
(3) PRESTATION (Object): The conduct required to be observed by the debtor/obligor (to give, to
do, or not to do).
(4) VINCULUM JURIS (Juridical or Legal Tie; Efficient Cause): That which binds or connects the
parties to the obligation.

DIFFERENT KINDS OF PRESTATIONS

(1) TO GIVE: real obligation; to deliver either (a) a specific or determinate thing, or (b) a generic
or indeterminate thing.
(2) TO DO: positive personal obligation; includes all kinds of work or service.
(3) NOT TO DO: negative personal obligation; to abstain from doing an act; includes the obligation
not to give.

CLASSIFICATION OF OBLIGATIONS
1. AS TO SANCTION
(1) CIVIL OBLIGATION (or perfect obligation) – give a right of action to compel their performance;
the sanction is judicial process
(2) NATURAL OBLIGATION – midway between civil and purely moral obligations; there is a
juridical tie, but performance is left to the will of the debtor; after voluntary fulfillment by the
obligor, the sanction is the law
(3) MORAL OBLIGATION (or imperfect obligation) – the sanction is conscience or morality. These
obligations are not judicially demandable. Moral duty is not a valid consideration.

Civil obligations give a right of action to compel their performance. Natural obligations, not being
based on positive law but on equity and natural law, do not grant a right of action to enforce
their performance, but after voluntary fulfillment by the obligor, they authorize the retention of
what has been delivered or rendered by reason thereof.

Natural obligations are midway between civil obligations and purely moral obligations. It is
distinguished from moral in that it produces some juridical effects (ex. Right to retention), but is
distinguished from civil in that it does not give rise to an action to compel its performance.
2. As to Subject Matter
(1) REAL – obligation to give
(2) PERSONAL – obligation to do or not to do

3. As to the Affirmativeness or Negativeness of the Obligation

(1) POSITIVE/AFFIRMATIVE – obligation to give or to do
(2) NEGATIVE: obligation not to give or not to do

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4. As to Persons Obliged
(1) UNILATERAL – only one of the parties is bound
(2) BILATERAL – both parties are bound
a. Reciprocal – performance by one is dependent on the performance by the other
b. Non-reciprocal – performance by one is independent of the other

1.1.1 Sources of obligations and their concepts

A single act or omission may give rise to different causes of action.
1.1.1.1 Law
Obligations derived from law are not presumed. Only those expressly determined in this Code or
in special laws are demandable, and shall be regulated by the precepts of the law which
establishes them; and as to what has not been foreseen, by the provisions of this Code.

It is imposed by the state and is generally imbued with public policy considerations.

1.1.1.2 Contracts
Obligations arising from contracts have the force of law between the contracting parties and
should be complied with in good faith.

A contract is a meeting of minds between two persons whereby one binds himself, with respect
to the other, to give something or to render some service.

1.1.1.3 Quasi-contracts
Certain lawful, voluntary and unilateral acts give rise to the juridical relation of quasi-contract to
the end that no one shall be unjustly enriched or benefited at the expense of the other.
Good examples of an obligation arising from a quasi-contract are
Solutio Indebiti- If something is received when there is no right to demand it, and it was unduly
delivered through mistake, the obligation to return it arises.
Negotiorum Gestio- Whoever voluntarily takes charge of the agency or management of the
business or property of another, without any power from the latter, is obliged to continue the
same until the termination of the affair and its incidents, or to require the person concerned to
substitute him, if the owner is in a position to do so. This juridical relation does not arise in either
of these instances:
(1) When the property or business is not neglected or abandoned;
(2) If in fact the manager has been tacitly authorized by the owner.

1.1.1.4 Delicts
Civil Obligations arising from criminal offenses shall be governed by the penal laws, subject to
the pertinent provisions of Civil Code, regulating damages.
Civil liability attaches to any individual who is found to be criminally liable.

1.1.1.5 Quasi-delicts
Whoever by act or omission causes damage to another, there being fault or negligence, is obliged
to pay for the damage done. Such fault or negligence, if there is no pre-existing contractual
relation between the parties, is called a quasi-delict.

1.1.2 Kinds of obligations in general under the Civil Code

A. PURE OBLIGATIONS- Its effectivity or extinguishment does not depend upon the fulfillment or
nonfulfillment of a condition or upon the expiration of a term or period. A pure obligation is
IMMEDIATELY DEMANDABLE.

B. CONDITIONAL OBLIGATIONS- In conditional obligations, the acquisition of rights, as well as the

extinguishment or loss of those already acquired, shall depend upon the happening of the event
which constitutes the condition.
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A condition is a future and uncertain event. This includes acquisition of proof/knowledge of a
past event unknown to the parties.
B.1. KINDS OF CONDITIONS
1) As to effect on the obligation
a. Suspensive- Obligation shall only be effective upon the fulfillment of the condition. The obligee
acquires a mere hope or expectancy, protected by law, upon the constitution of the obligation.
Before Fulfillment-The demandability and acquisition/ effectivity of the rights arising from the
obligation is suspended. After Fulfillment- The obligation arises or becomes effective. The obligor
can be compelled to comply with what is incumbent upon him.
DOCTRINE OF CONSTRUCTIVE FULFILLMENT OF SUSPENSIVE CONDITIONS-The condition shall be
deemed fulfilled when the obligor voluntarily prevents its fulfillment.

b. Resolutory- The obligation is demandable at once, without prejudice to the effects of the
happening of the event. The rights are immediately vested to the creditor but always subject to
the threat or danger of extinction by the happening of the resolutory condition. Before
Fulfillment-Preservation of creditor’s rights, demandable at once. After Fulfillment- Whatever
may have been paid or delivered by one or both of the parties upon the constitution of the
obligation shall have to be returned upon the fulfillment of the condition. However, when the
condition is not fulfilled, rights are consolidated and they become absolute in character.

2) As to cause/ origin
a. Potestative- The fulfilment of the condition depends on the sole act or decision of a party.
b. Casual- The fulfilment of the condition depends upon chance or upon the will of a third person.
c. Mixed- The fulfilment of the condition depends partly upon the will of a party to the contract
and partly upon chance and/or will of a third person.

Exclusively upon the Creditor’s Will Condition and obligation are valid.
Exclusively upon the Debtor’s Will in case of a Condition and obligation are void because to
Suspensive Condition allow such condition would be equivalent to
sanctioning obligations which are illusory. It
also constitutes a direct contravention of the
principle of mutuality of contracts. There is
nothing to demand until the debtor wishes to.
Exclusively upon the Debtor’s Will in case of a Condition and obligation are valid because in
Resolutory Condition such situation, the position of the debtor is
exactly the same as the position of the
creditor when the condition is suspensive. It
does not render the obligation illusory.

Impossible Conditions- those contrary to good customs or public policy and those prohibited by
law shall annul the obligation which depends upon them. If the obligation is divisible, that part
thereof which is not affected by the impossible or unlawful condition shall be valid. The condition
not to do an impossible thing shall be considered as not having been agreed upon.

OBLIGATIONS WITH A PERIOD OR TERM

Obligations for whose fulfillment a day certain has been fixed, shall be demandable only when
that day comes. Obligations with a resolutory period take effect at once, but terminate upon
arrival of the day certain. A day certain is understood to be that which must necessarily come,
although it may not be known when.
When the debtor binds himself to pay when his means permit him to do so, the obligation shall
be deemed to be one with a period.

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Period or Term: Interval of time, which either suspends demandability or produces
extinguishment. The period must be: future, certain, and possible. A fortuitous event does not
interrupt the running of the period. It only relieves the contracting parties from the fulfillment of
their respective obligations during the period.

Kinds of Period
(1) Ex die – period with a suspensive effect. Obligation becomes demandable after the lapse of
the period.
(2) In diem – period with a resolutory effect. Obligation becomes demandable at once but is
extinguished after the lapse of the period.

Benefit of the Period-Whenever in an obligation a period is designated, it is presumed to have

been established for the benefit of both the creditor and the debtor, unless from the tenor of the
same or other circumstances it should appear that the period has been established in favor of
one or of the other.

If the period is for the benefit of the debtor alone, he shall lose every right to make use of it-
Result- The obligation immediately becomes due and demandable even if the period has not yet
expired. The obligation becomes a pure one:
(1) When after the obligation has been contracted, he becomes insolvent, unless he gives a
guaranty or security for the debt;
(2) When he does not furnish to the creditor the guaranties or securities which he has promised;
(3) When by his own acts he has impaired said guaranties or securities after their establishment,
and when through a fortuitous event they disappear, unless he immediately gives new ones
equally satisfactory;
(4) When the debtor violates any undertaking, in consideration of which the creditor agreed to
the period;
(5) When the debtor attempts to abscond
(6) When required by law or stipulation;
(7) If parties stipulated an acceleration clause

When Courts May Fix Period-If the obligation does not fix a period, but from its nature and the
circumstances it can be inferred that a period was intended, the courts may fix the duration
thereof. The courts shall also fix the duration of the period when it depends upon the will of the
debtor. In every case, the courts shall determine such period as may under the circumstances
have been probably contemplated by the parties. Once fixed by the courts, the period cannot be
changed by them.

D. ALTERNATIVE OR FACULTATIVE OBLIGATIONS

Alternative obligations: Several prestations are due but the performance of one is sufficient.
Right of Choice belongs to the debtor, UNLESS— (1) it is expressly granted to the creditor (2) it is
expressly granted to a third person
Consent of other party-The law does not require the other party to consent to the choice made
by the party entitled to choose. The only possible exception is when the debtor has chosen a
prestation which could not have been the object of the obligation; the creditor’s consent would
bring about a novation of the obligation.

Facultative obligations: Only one prestation is agreed upon, but the obligor may render another
in substitution.

E. DIVISIBLE AND INDIVISIBLE OBLIGATIONS

Divisible Obligations-Ones which are susceptible of partial performance, that is, the debtor can
legally perform the obligation by parts and the creditor cannot demand a single performance of
the entire obligation.
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Indivisible Obligations-Ones which cannot be validly performed in parts.
Effects
Creditor cannot be compelled to receive partially the prestation in which the obligation consists;
neither may the debtor be required to make the partial payment, UNLESS:
(1) The obligation expressly stipulates the contrary.
(2) The different prestations constituting the objects of the obligation are subject to different
terms and conditions.
(3) The obligation is in part liquidated and in part unliquidated.

F. OBLIGATIONS WITH A PENAL CLAUSE

Penal Clause An accessory undertaking to assume greater liability in case of breach. If the
principal obligation is void, the penal clause shall also be void. However, the nullity of the penal
clause does not carry with it the nullity of the principal obligation.

Rules on Penalty
(1) The penalty shall substitute the indemnity for damages and payment of interest in case of
non-compliance UNLESS:
a. There is an express provision to that effect
b. The obligor refuses to pay the penalty
c. The obligor is guilty of fraud in non-fulfillment
In this case, damages and interest aside from the penalty may be awarded.

JOINT AND SOLIDARY OBLIGATIONS

JOINT OBLIGATIONS The whole obligation, whether capable of division into equal parts or not, is
to be paid or performed by several debtors (joint debtors) and/or demanded by several creditors
(joint creditors). Each debtor is liable only for a proportionate part of the debt, and each creditor
is entitled only to a proportionate part of the credit.

Terms used for Joint Obligations (1) Mancomunada (2) Mancomunada simple (3) Pro rata (4) “We
promise to pay”, followed by signatures of two or more persons

Presumption of Joint Obligation-An obligation is presumed joint if there is a concurrence of

several creditors, or of several debtors, or of several creditors and debtors in one and the same
obligation
Exceptions:
(1) When the obligation expressly states that there is solidarity
(2) When the law requires solidarity, i.e. quasi-delicts (Art. 2194), joint payees by mistake (Art.
2157), acts under articles 19- 22 if committed by two or more persons acting jointly
(3) When the nature of the obligation requires solidarity
(4) When a charge or condition imposed upon heirs or legatees, and the testament expressly
makes the charge or condition in solidum
(5) When the solidary responsibility is imputed by a final judgment upon several defendants

Presumption of Divisibility in Joint Obligations-Credit or debt shall be presumed to be divided

into as many equal shares as there are creditors or debtors, the credits or debts being considered
distinct from one another.

SOLIDARY OBLIGATIONS
An obligation where there is concurrence of several creditors, or of several debtors, or of several
creditors and several debtors, by virtue of which, each of the creditors has the right to demand,
and each of the debtors is bound to render, entire compliance with the prestation which
constitutes the object of the obligation (obligacion solidaria). Each debtor is liable for the entire
obligation (solidary debtor or passive solidarity), and each creditor is entitled to demand the
entire obligation (solidary creditor or active solidarity).
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Solidarity may exist although the creditors and the debtors may not be bound in the same
manner and by the same periods and conditions.
Terms used for Solidary Obligations (1) Mancomunada solidaria (2) Joint and several (3) In
solidum (4) Juntos o separamende (5) “I promise to pay”, followed by signatures of two or more
persons (6) Individually and collectively (7) Individually liable (8) Individually and jointly liable

Distinguished from Indivisibility-The indivisibility of an obligation does not necessarily give rise to
solidarity. Nor does solidarity of itself imply indivisibility.

Kinds of Solidary Obligations

As to Source
(1) Legal – imposed by law
(2) Conventional – agreed upon by parties
(3) Real – imposed by the nature of the obligation

As to Parties Bound
(1) Active (solidarity among creditors) – Each creditor has the authority to claim and enforce the
rights of all, with the resulting obligation of paying everyone what belongs to him. The debtor
may pay any one of the solidary creditors; but if any demand, judicial or extrajudicial, has been
made by one of them, payment should be made to him.
(2) Passive (solidarity among debtors) – Each debtor can be made to answer for the others, with
the right on the part of the debtor-payor to recover from the others their respective shares. The
creditor may proceed against any one of the solidary debtors or some or all of them
simultaneously. The demand made against one of them shall not be an obstacle to those which
may subsequently be directed against the others, so long as the debt has not been fully collected.
(3) Mixed (solidarity among creditors and debtors) – Solidarity is not destroyed by the fact that
the obligation of each debtor is subject to different conditions or periods. The creditor can
commence an action against anyone of the debtors for the compliance with the entire obligation
minus the portion or share which corresponds to the debtor affected by the condition or period.

1.1.3 Specific circumstances affecting obligations in general

Those who in the performance of their obligations are guilty of fraud (dolo), negligence (culpa),
or delay (mora), and those who in any manner contravene the tenor thereof, are liable for
damages.

1.1.3.1 Fortuitous events

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.

Fortuitous Event - a happening independent of the will of the debtor and which makes the normal
fulfillment of the obligation impossible.
(1) Act of God: An accident, due directly or exclusively to natural causes without human
intervention, which by no amount of foresight, pains or care, reasonably to have been expected,
could have been prevented.
(2) Act of Man: Force majeure is a superior or irresistible force, which is essentially an act of man;
includes unavoidable accidents, even if there has been an intervention of human element,
provided that no fault or negligence can be imputed to the debtor.

Liability in case of Fortuitous Event

No person shall be responsible for fortuitous events, UNLESS:
(1) expressly specified by law
(2) liability specified by stipulation
(3) the nature of the obligations requires assumption of risk
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(4) debtor is guilty of concurrent or contributory negligence
(5) debtor has promised to deliver the same thing to two or more persons who do not have the
same interest
(6) the thing is lost due to the obligor’s fraud, negligence, delay or contravention of the tenor of
the obligation
(7) the obligation to deliver a specific thing arises from a crime
(8) the object is a generic thing, i.e. the genus never perishes

Requisites of Exemption Based on Force Majeure

(1) The event must be independent of the debtor’s will (fraud or negligence).
(2) The event must be unforeseeable or inevitable.
(3) The event renders it impossible for debtor to fulfill his obligation in a normal manner.
(4) The debtor must be free from any negligence or participation in the aggravation of the
injury to the creditor
(5) It must be the sole cause, not merely a proximate cause.

1.1.3.2 Fraud
FRAUD (DOLO) IN THE PERFORMANCE OF THE OBLIGATION
Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for
future fraud is void.
Fraud (dolo) is the deliberate or intentional evasion of the normal fulfilment of an obligation.
A waiver of future fraud is void but past fraud may be subject of a valid waiver by the aggrieved
party.

Distinguished from Causal Fraud

Fraud in the Performance Causal Fraud (dolo causante and dolo
incidente)
Definition
The deliberate and intentional evasion of the Every kind of deception for the purpose of
normal fulfilment of obligations. leading another party into error and execute a
particular act.
When Present
During the performance of a pre-existing During the time of birth or perfection of the
obligation obligation
Purpose
To evade normal fulfilment of obligation To secure consent of another to enter the
contract(dolo causante)
To influence a party regarding an incident to
the contract (dolo incidente)
Result
Breach of the obligation Vitiation of consent
Remedy
Obligee may recover damages Innocent party may annul the contract (if dolo
causante) Damages (both dolo causante or
incidente)
Obligation Involved
Valid obligation Voidable obligation (if dolo causante)
Valid obligation (if dolo incidente)

Dolo Causante – that which determines or is the essential cause of the contract
Dolo Incidente – refers only to some particular or accident of the obligation

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In order that fraud may vitiate consent, it must be the dolo causante and not merely the dolo
incidente, inducement to the making of the contract.
Example:
The false representation was used by plaintiff to get from defendant a bigger share of net profits.
This is just incidental to the matter in agreement because despite plaintiff’s deceit, respondent
would have still entered into the contract.

Requisites for Fraud to Vitiate a Contract:

(1) It must have been employed by one contracting party upon the other;
(2) It must have induced the other party to enter into the contract;
(3) It must have been serious; and
(4) It must have resulted in damage or injury to the party seeking annulment.

1.1.3.3 Negligence
Responsibility arising from negligence in the performance of every kind of obligation is also
demandable, but such liability may be regulated by the courts, according to the circumstances.

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.

Diligence Required
(1) By stipulation of the parties
(2) By law, in the absence of stipulation
(3) Diligence of a good father of a family, if both the contract and law are silent.
(4) Future negligence may be waived except in cases where the nature of the obligation or the
public requires another standard of care (i.e. common carriers)
Note: Only future simple negligence may be waived. Future gross negligence may not be waived
since such negligence amounts to fraud.

Exceptions: extraordinary diligence for Common Carriers and Hotel and Inn-keepers

Test of Negligence “Whether or not the defendant, in doing the alleged negligent act, used the
reasonable care and caution, which an ordinary and prudent person would have used in the same
situation” If not, then he is guilty of negligence.

Kinds of Civil Negligence

Culpa Contractual
Negligence is merely incidental in the
performance of an obligation.
There is always a preexisting contractual
relation.
The source of obligation of defendant to pay
damages is the breach or nonfulfillment of the
contract.
Proof of the existence of the contract and of
its breach or nonfulfillment is sufficient prima
facie to warrant recovery.
Proof of diligence in the selection and
supervision of the employees is NOT available
as defense.
Culpa Aquiliana
Negligence is substantive and independent.
There may or may not be a pre-existing
contractual obligation.
The source of obligation is the defendant’s
negligence itself.
The negligence of the defendant must be
proved.
Proof of diligence in the selection and
supervision of the employee is a defense.

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1.1.3.4 Delay
Failure to perform an obligation on time which constitutes breach of the obligation.

Rules on Default, Delay, or Mora

Unilateral Obligations
General Rule: “No demand, No delay.” The
mere expiration of the period fixed by the
parties is not enough in order that the debtor
may incur in delay. 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.
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.
No delay if neither performs.

Demand may be judicial or extrajudicial.

When demand is not necessary in order that delay may exist (Art. 1169 par 2)
(1) When demand would be useless, as when the obligor has rendered it beyond his power to
perform. 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 the law or the obligation expressly so declare; Note: It is insufficient that the law or
obligation fixes a date for performance. It must further state expressly that after the period
lapses, default will commence;

Kinds of Delay; Requisites and Effects

(1) Mora Solvendi
(2) Mora Accipiendi
(3) Compensatio Morae

Mora solvendi – Delay on the part of the debtor to fulfil his obligation either to give (ex re) or to
do (ex persona).
Requisites:
1. Obligation must be liquidated, due and demandable
2. Non-performance by the debtor within the period agreed upon
3. Demand, judicial or extra-judicial, by the creditor, unless demand is not necessary under the
circumstances.

There is no mora solvendi in:

a) Negative obligations because delay is impossible
b) Natural obligations

Effects:
1. The debtor is liable for damages.
2. For determinate objects, the debtor shall bear the risk of loss, even if the loss is due to
fortuitous events.

Mora accipiendi – Delay on the part of the creditor to accept the performance of the obligation
Requisites:
(1) Debtor offers performance.
(2) Offer must be in compliance with the prestation as it should be performed.
(3) Creditor refuses performance without just cause.

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Effects:
(1) The debtor is exempted from risk of loss of the thing, which is borne by the creditor.
(2) The expenses incurred by the debtor for the preservation of the thing after the mora shall be
chargeable to the creditor.
(3) If the obligation bears interest, the debtor does not have to pay from the time of delay.
(4) The creditor is liable for damages.
(5) The debtor may relieve himself of the obligation by consigning the thing.

Compensatio morae – Delay of both parties in reciprocal obligations.

Effects:
1. Delay of the obligor cancels delay of obligee (and vice versa) hence it is as if there is no default.
2. The liability of the first infractor shall be equitably tempered by the courts. If it cannot be
determined which of the parties first violated the contract, the same shall be deemed
extinguished, and each shall bear his own damages.

1.1.3.5 Breach of contract

Substantial Breach
1. Total breach
2. Amounts to nonperformance, basis for rescission (resolution) under Art. 1191 and payment of
damages
Slight or Casual Breach
1. Partial breach
2. There is partial/ substantial performance in good faith
3. Gives rise to liability for damages only (1234)

If the obligation has been substantially performed in good faith, the obligor may recover as
though there had been a strict and complete fulfillment, less damages suffered by the obligee.

REMEDIES AVAILABLE IN CASE OF BREACH

1. ACTION FOR SPECIFIC PERFORMANCE (IN OBLIGATION TO GIVE SPECIFIC THING) The
creditor has a right to compel the debtor to perform the prestation.
2. ACTION FOR SUBSTITUTED PERFORMANCE (IN OBLIGATION TO GIVE GENERIC THING)
3. RESCISSION (RESOLUTION IN RECIPROCAL OBLIGATIONS)- The unmaking of a contract, or
its undoing from the beginning, and not merely its termination. It extinguishes the
obligatory relation as if it had never been created, the extinction having a retroactive
effect. Both parties must surrender what they have respectively received and return each
other as far as practicable to their original situation.
4. DAMAGES, IN ANY EVENT

1.1.4 Duties of obligor in obligation to do or not to do

OBLIGATION “TO GIVE”
TYPE OF THINGS:
Specific Thing- Particularly designated or physically segregated from all others of the same class.
Identified by individuality. Cannot be substituted against the obligee’s will.
Generic Thing- Object is designated only by its class/ genus/ species. Can be substituted by any
of the same class and same kind.

RIGHTS AND DUTIES OF PARTIES

Duties of the Debtor/ Obligor Rights of the Creditor/Obligee
To Give a Specific Thing
1. To preserve or take care of the thing due 1. To compel delivery
2. To deliver the thing itself 2. To recover damages in case of breach,
3. To deliver the fruits of the thing exclusive or in addition to specific performance

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4. To deliver its accessions and accessories 3. To fruits from the time the obligation to
(a) accessions – everything which is produced deliver arises
by a thing, or which is incorporated or 4. Not to be compelled to receive a different
attached thereto, excluding fruits one, although of the same value as, or more
(b) accessories – things destined for the valuable than that which is due.
embellishment, use or preservation of
another thing of more importance
5. To pay damages in case of breach
To Give a Generic Thing
1. To take care of the thing 1. To ask that the obligation be complied with
2. To deliver a thing of the quality intended by 2. To ask that the obligation be complied with
the parties taking into consideration the by a third person at the expense of the debtor
purpose of the obligation and other 3. To recover damages in case of breach
circumstances - Creditor cannot demand a 4. Not to be compelled to receive a different
thing of superior quality; neither can the one, although of the same value as, or more
debtor deliver a thing of inferior quality. valuable than that which is due
3. To pay damages in case of breach

OBLIGATION “TO DO” OR “NOT TO DO”

RIGHTS AND DUTIES OF PARTIES:
Duties of the Debtor Rights of the Creditor
To Do
1. To do it 1. To have the obligation executed at the cost
2. To shoulder the cost of execution should he of the debtor
fail to do it 2. To recover damages in case of breach
3. To undo what has been poorly done Note: The debtor cannot be compelled to
4. To pay damages in case of breach perform his obligation. The ultimate sanction
of civil obligations is indemnification of
damages. This would be tantamount to
involuntary servitude.
Not To Do
1. Not to do what should not be done 1. To ask to undo what should not be done, at
2. To shoulder cost of undoing what should the debtor’s expense.
not have been done 2. To recover damages, where it would be
3. To pay damages in case of breach physically or legally impossible to undo what
should not have been done, because of :
a. the very nature of the act itself;
b. rights acquired by third persons who acted
in good faith;
c. when the effects of the acts prohibited are
definite in character and will not cease even if
the thing prohibited be undone.

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