up to ART 1166

NATURE AND EFFECT OF OBLIGATIONS Kinds of Thing 1. Specific or Determinate – particularly designated or physically segregated others of the same class.- it is identified by its individuality- the debtor cannot substitute it with another although the latter is of the same kind and quality without the consent of the creditor. 2. Generic or Indeterminate – refers only to a class or genus to which it pertains and cannot be pointed out with particularity .-it is identified only by its specie- the debtor can give anything of the same class as long as it is of the same kind. Duties of debtor in obligation to give a determinate thing 1. Preserve the thing a. Diligence of a good father of a family – with ordinary care or diligence which an average person exercises over his own property b. Another standard of care – slight or extraordinary diligence c. Factors to be considered i. force majeure ii. fortuitous events d. Reason for debtor’s obligation 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 debtor in obligation to deliver a generic / indeterminate thing 1. To deliver a thing this is of the quality intended by the parties taking into consideration the purpose of the obligation and other circumstances. 2. To be liable for damages in case of fraud, negligence, or delay, in the performance of his obligation Kinds of Fruits 1. Natural fruits – spontaneous products of the soil, and the young and other products of animals. 2. Industrial fruits – produced by lands of any kind through cultivation or labor. 3. Civil fruits – those derived by virtue or juridical relation. Right of the creditor to the fruits The creditor is entitled to the fruits from the time the obligation to make delivery arises. When obligation to deliver fruits arise

1. Upon the perfection of the contract 2. Upon the fulfilment of a suspensive condition or arrival of the term 3. In a contract of sale, it arise from the perfection of the contract. Kinds of Rights 1. Personal right – right or power of creditor to demand from debtor, as a definite passive subject, the fulfilment of the latter’s obligation to give, to do, or not to do. There is a definite active subject and a definite passive subject. 2. Real right – right or interest of a person over a specific thing (like ownership, possession, mortgage), without a definite passive subject against whom the right may be personally enforced. There is only a definite active subject without any definite passive subject. Acquisition of ownership Ownership is acquired through tradition or delivery. Remedies of creditor in real obligation 1. In a specific real obligation (obligation to deliver a determinate thing) a. Demand specific performance or fulfilment of the obligation with a right to indemnity for damages; or b. Demand rescission or cancellation of the obligation also with a right to recover damages; or c. Demand payment of damages only, where it is the only feasible remedy 2. A generic real obligation (obligation to deliver an indeterminate thing) a. Can be performed by a third person since the object is expressed only according to its family or genus in the expense of the debtor. b. The creditor has the right to recover damages in case of breach or violation of the obligation.  An indeterminate/generic thing cannot be the object of destruction by a fortuitous event because genus nunquam perit (genus never perishes).