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.
Delivery of a determinate thing – obliged to exercise diligence of a good father of a family before
delivery. Unless the parties stipulate a different kind of standard of care.
Relate to Article 1175 - “A common carrier is bound to carry the passengers safely as far as human
care and foresight can provide, using the utmost diligence of a very cautious persons, with a due
regard for all the circumstances” – Extraordinary diligence is required in a contract of carriage
because of its nature
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 fruits:
1. Natural - spontaneous products of the soil, and the young and other products of animals,
e.g., grass; all trees and plants on lands produced without the intervention of human labor;
a. question - if a person plants banana
2. Industrial - produced by lands of any kind through cultivation or labor
a. throwing mango seed after eating, and it grows to become a mango tree and bore
fruits, is it considered industrial fruit? – No, there needs to be cultivation or labor
3. Civil - derived by virtue of a juridical relation, e.g., rents, prices of leases, other similar
income.
Kinds of Deliver:
1. Actual Delivery - where physically, the property changes hands
2. Constructive delivery - the physical transfer is implied
When obligation to deliver arises.
Generally, the obligation to deliver the thing due and, consequently, the fruits thereof, if any, arises
from the time of the perfection of the contract. Perfection in this case refers to the birth of the
contract or to the meeting of the minds between the parties. (Arts. 1305, 1315, 1319.)
IOW: It depends – if no term or condition, then from the perfection of the contract
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 q
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.
Take Note - Classification of obligation from the viewpoint of Subject Matter (object):
1. Real obligations (to give):
a. to give a specific thing
b. to give a generic or indeterminate thing
2. Personal Obligations (to do or not do)
What are the remedies of a creditor in a real obligation
1. Obligation to deliver a determinate thing:
a. demand specific performance or fulfillment with damages
b. demand rescission or cancellation of the obligation with damages;
c. damages only
2. Deliver a Generic thing
a. Can be performed by a third person in addition to the right to claim damages
Effects of Fortuitous Events:
1. Determinate or specific obligation - not extinguish when any of the following circumstances
is present:
a. delay on the part of the debtor/obligor;
b. debtor promised to deliver the thing to two or more persons who do not have the
same interest (double sale)
2. Generic obligation - not extinguished
Art. 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.
Example: Selling of a production warehouse, does not specifically mention the conveyor belts – still
included applying art. 1166, its accessions and accessories.
Meaning of accessions and accessories:
1. Accession - additions or improvements on a thing or principal object of the contract. e.g.,
house, trees, airconditioners of the car;
2. accessories - joined or included with the principal for the latter’s better use, perfection, or
enjoyment.
Unless otherwise stipulated, an obligation to deliver the accessions or accessories of a thing does
not include the latter.
Art. 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.
Remedies of CR in a positive personal obligation
1. if DR fails to comply with his obligation to do, the CR has the right:
a. to perform the obligation himself (creditor) or by another, at the DR’s expense; and
b. recover damages.
2. if the obligations is done in contravention of the terms or is poorly done – can be undone at
the expense of the DR
Note: no specific performance in a personal obligation since it may amount to involuntary servitude
– prohibited by the Constitution
Article. 1168 - When an obligation consists in not doing, and the obligor does what has been
forbidden him, it shall also be undone at his expense.
Art. 1169 - Those obliged to deliver or to do something incur in delay from the time the
obligee judicially or extra-judicially 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 delcars; 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:
1. Mora Solvendi - delay in the part of the debor to fulfill his obligation by reason of a cause
imputable to him;
2. mora accipiendi - delay on the part of the CR without justifiable reason to accept the
performance of the obligation; and
3. Compensatio morae - delay of the obligors in reciprocal obligations
Note: No delay in negative personal obligations
Requisites of delay or default by the Debtor
1. failure to perform his obligation on the agreed date;
2. demand by the CR to fulfill, perform, or comply
Effects of Delay
Mora Solvendi (DR’s Delay)
1. guilty of breach of obligation;
2. liable for interest;
3. liable even for a fortuitous event.
Mora Accipiendi (CR’s delay)
1. guilty of breach of obligation;
2. liables for damages suffered by the DR, if any;
3. bears the risk of loss of the thing due;
4. DR is not liable for interest from the time of the CR’s delay;
5. DR may release himself from the obligation by consignation of the thing or sum due
Compensatio Morae
When demand not necessary
1. when the obligation so provides
2. when the law so provides
3. when time is of the essence
When is Time of the Essence Without Express Stipulation?
There are situations where the importance of time can be implied, even if it is not expressly stated.
For example:
1. Nature of the Agreement – In contracts where timing is critical to achieving the intended
purpose, it is implied that time is of the essence.
a. Example: A contract to deliver fresh goods (e.g., seafood) requires strict adherence to
the delivery schedule because the goods will spoil if delayed.
2. Circumstances of the Contract – If the parties' actions or communications show that meeting
a specific time frame is essential, courts can interpret time as being of the essence.
a. Example: A builder contracts to finish constructing a stage for an event on a specific
date.
Even if "time is of the essence" is not explicitly stated, the event date makes the
deadline critical.
3. Express but Indirect Language – Even if the contract doesn’t use the exact words “time is of
the essence,” phrases like “delivery must be on or before [specific date]” or “strict compliance
is required” can indicate that time is important.
Example when time is not of the essence
A contractor agrees to build a residential house for the owner within six months, but the contract
does not explicitly state that "time is of the essence."
Circumstances: The house is not intended for urgent use, such as a business or event, and the owner
does not emphasize the importance of the deadline during negotiations or in the contract.
Art. 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.
Fraud (deceit) - the deliberate or intentional evasion of the normal fulfillment of an obligation.
Art. 1171
Art. 1172 - 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
Article talks about liability when there is breach of obligation due to negligence
Validity of waiver of action arising from negligence
1. an action for future negligence may be renounced except where the nature of the obligation
requires the exercise of extraordinary diligence as in the case of common carries. (Art. 1173)
– make a problem if it is stated in a contract of common carrier, there is a stipulation to
exercise lesser due diligence
2. where negligence is gross or shows bad faith, it is considered equivalent to fraud. Any waiver
of an action for future negligence of this kind is VOID.
Difference between Culpa Contractual and Culpa Aquiliana
Requistes of Cula Aquiliana (quasi-delict)
1. there is an act or omission
2. there is fault or negligence
3. there is damage or injury suffered by the plaintiff or complainant
4. there is DIRECT CAUSAL connection between the negligent act and the damage
5. there is NO PRE-EXISTING contractual relationship between the parties
Requisites of Culpa Contractual (Breach of Contract Due to Negligence)
1. there is a VALID and EXISTING contract
2. there is a breach of contractual obligationn
3. breach is due to NEGLIGENCE not wilfull refusal
4. damage or injury must have resulted from the breach
5. negligence is the PROXIMATE CAUSE of the damage
