ARTICLE 3 - “Ignorance of law excuses no one from compliance therewith”

ARTICLE 1246 - When the obligation consists in the delivery of an indeterminate or generic thing,
whose quality and circumstances have not been stated, the creditor cannot demand a thing of
superior quality. Neither can the debtor deliver a thing of inferior quality. The purpose of the
obligation and other circumstances shall be taken into consideration.

ARTICLE 1305 - A contract is a meeting of minds between two (2) persons whereby one binds
himself, with
respect to the other, to give something or to render some service.

ARTICLE 1477 - "The ownership of the thing sold shall be transferred to the vendee upon the actual
or constructive delivery thereof."

ARTICLE 1156 - An obligation is a juridical necessity to give, to do or not to do.

ARTICLE 1157 - Obligations arise from Law, Contract, Quasi-contracts, Acts or omissions punished by
law, and Quasi-delicts.

ARTICLE 1158 – “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 Book.”

ARTICLE 1159 - Obligations arising from contracts have the force of law between the contracting
parties and should be complied with in good faith.

ARTICLE 1160 - "Obligations derived from quasi-contracts shall be subject to the provisions of
Chapter 1, Title XVII of this Book."

ARTICLE 1161- Civil obligations arising from criminal offenses shall be governed by the penal laws,
subject to the provisions of Article 2177, and of the pertinent provisions of Chapter 2, Preliminary
Title, on Human Relations, and of Title XVII of this book, regulating damages.

ARTICLE 1162 - Obligations derived from quasi-delicts shall be governed by the provisions of
Chapter 2, Title XVII of this Book, and by special laws.

ARTICLE 1163 - Every person obliged to give something is also obliged to take care of it with the
proper diligence of a good father family, unless the law or the stipulation of the parties requires
another standard of care.

ARTICLE 1164 - The creditor has a right to the fruits of the thing from the time the obligation to
deliver it arises.
he shall acquire no real right over it until the same has been delivered to him.

ARTICLE 1165 – (1ST PARAGRAPH) “When what is to be delivered is a determinate thing, the
creditor, in addition to the right granted to him by Art. 1170, may compel the debtor to make delivery.
(2ND PARAGRAPH) 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 delivery."

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.
ARTICLE 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.

ARTICLE 1168 - When the obligation consists in not doing, and the obligor does what has been
forbidden him, it shall be undone at this expense.

ARTICLE 1169 - (1st paragraph) Those obliged to deliver or to do something incur in delay from the
time the oblige judicially or extra judicially demands from them the fulfilment of the obligation.
(2nd paragraph) 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 declares; 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 for the establishment motive of the
contract, or (3) When demand would be useless, as when the obligor has rendered it beyond his
power to perform.
(3rd paragraph) 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 fulfils his
obligation, delay by the other begins.

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."

ARTICLE 1171 - If the debtor will be found guilty of fraud, he shall be responsible for damages and
his obligation can be demanded with respect to all kinds of obligations. His damages cannot be
mitigated. Waiver of an action for future fraud is void but any waiver of an action for past fraud is
valid.

ARTICLE 1172 - If the debtor will be found guilty of negligence, he shall be responsible for damages
and his obligation can be demanded with respect to all kinds of obligations. His damages can be
mitigated as being regulated by the courts. Waiver of an action for future negligence is void IF IT
SHOWS BAD FAITH but any waiver of an action for future negligence may be renounced except in
cases where the obligation requires extraordinary diligence.

ARTICLE 1173 - (1st paragraph) 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 person, of the time and of the place. When negligence shows bad faith, the
provisions of articles 1171 and 2201, paragraph 2, shall apply.
(2nd paragraph) If the law or contract does not state the diligence which is to be observed in the
performance, that which is expected of a good father of a family shall be required.

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.

ARTICLE 1175 - Usurious transactions shall be governed by special laws.

ARTICLE 1176 (1st paragraph) - The receipt of the principal (the main amount in a loan/debt) by the
creditor, without reservation with respect to the interest, shall give rise to the presumption that said
interest has been paid.
(2nd paragraph) 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.

ARTICLE 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.

ARTICLE 1178 - Subject to the laws, all rights acquired in virtue of an obligation are transmissible, if
there has
been no stipulation to the contrary.