Obligations and Contracts

• Determinate Thing: Identified by its individuality. The debtor cannot substitute
• Generic Thing: Only by its specie, debtor can give anything of the same class as long its the same kind
• Duties of the Debtor (determinate thing)

  1. Preserve the thing
  2. Deliver the fruits of the thing
  3. deliver the accessions and accessories
  4. Deliver the thing itself
  5. Answer for damages in case of non-fulfilment or breach
• Duties of the Debtor (Generic Thing)

  1. To Deliver a thing which is of quality intended
  2. Liable for damages
• Different Kinds of Fruits

  1. Natural Fruits
  2. Industrial Fruits
  3. Civil Fruits
• Natural Fruits

  • Spontaneous Products of the Soil
  • Without intervention of human labor
• Industrial Fruits


  Through cultivation or labor
• Civil Fruits


  By virtue of a juridical relation
• Perfection of the Contract

  Birth of the contract / Meeting of the Minds
• Personal Right

  • right or power of a person (creditor) to demand from another (debtor)
• Real Right


  Right over a specific thing, against the whole world
• Art. 1165 (1) When what is to be delivered is a DETERMINATE THING, the creditor in addition to the right granted him by Art. 1170, may compel the debtor to make the delivery
• Art. 1665 (2) If the thing is INDETERMINATE orGENERIC he may ask that the obligation be complied with at the expense of the debtor.
• Art. 1165 (3) 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
• Remedies of Creditor in Real Obligations

  Demand specific performance or fulfillment, right to indemnity for damages

  Demand rescession or cancellation, right to recover damages

  Demand payment of damages only
• Art . 1166 The obligation to give a determinate thing includes that of delivering all its accessions an accessories, even though they may not have been mentioned
• Accessions


  Fruits of the thing, additions or improvements
• Accessories


  Included with the principal thing, embellishment, better use or completion
• Art. 1167 If a person obliged to do something fails to do, 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 ay be decreed that what has been poorly done be undone
• Situations contemplated in Article 1167


  Debtor Fails to Perform

  Contrary to the terms

  Poor Manner
• Remedies of creditor in positive personal obligation

  (To Do)

  Recover damages (Art 1170)

  May ask a 3rd Person
• Remedies of the Creditor in Negative Personal Obligation

  (Not to Do)

  Undoing the forbidden thing plus damages
• Ordinary Delay


  Simple Delay

  Failure to perform an obligation on time
• Legal Delay

  Failure constitutes a breach of contract

  There must be DEMAND
• Kinds of Delay

  Mora Solvendi

  Mora Accipiendi

  Compensation Morae
• Mora Solvendi


  Delay of the Debtor to fulfill obligation
• Mora Accipiendi 


  Delay of the creditor to accept the performance of the obligation
• Compensatio Morae


  Delay of the obligors in reciprocal obligations

  (No actionable default both parties)
• 3 Conditions for Mora Solvendi can exist

  -failure of the debtor to perform on the date agreed upon

  -demand made by the creditor to comply with his obligation

  -failure of the debtor to comply with such demand
• Effects of Delay: Mora Solvendi


  Guilty of breach / violation of the obligation

  Liable for interest (if obligation is money)

  Liable even for a fortuitous event (determinate)
• Effects of Delay: Mora Accipiendi

  -Guilty of breach of obligation

  -Liable for damages

  -Bears the risk of loss of the thing due

  -To pay money, debtor is not liable for interest

  -Debtor may release himsel, consignation or deposit in court of the thing/sum due
• Effects of Delay: Compensation Morae


  No default or delay on the part of both parties
• When DEMAND IS NOT NECESSARY to put debtor in delay

  Stipulated

  Law Provides

  Time of the Essence

  Useless

  Performance by a party
• Grounds for Liability

  Fraud

  Negligence

  Delay

  Contravention of the terms of the Obligation
• Incidental Fraud


  Committed in the performance of an oblgation already existing because of contract
• Causal Fraud


  In the execution of a contract (Art 1338) vitiates consent
• Fraud


  -Intentional evasion

  -Malice or Dishonesty

  -Bad Faith

  -To Mislead or Deceive Another
• Negligence (Fault / Culpa)


  -Act or Omission

  -No Bad Faith or Malice

  -Prevents the Normal Fulfilment
• Contravention of the terms of the obligation

  -violation of the terms and conditions