2. Nature and Effects of Obligations

3. Nature and Effects of Obligations

a. Breaches of Obligations b. Remedies for Breach of Obligations c. Defense of Fortuitous Event

Determination of “Non-Transmissibility” of Obligation

• Nature of the Obligation - intransmissible by its nature when performance depends on the obligor’s personal qualifications or skill (e.g., an engagement to sing)
• Intransmissibility by stipulation of the parties;
• Intransmissible by law

Duties of a Debtor in an Obligation To Give

• To give a determinate thing (CIVIL CODE, arts. 1163, 1164 & 1166)
• To deliver the determinate thing itself; (CIVIL CODE, art. 1165)
• To preserve or take care of the thing due with the diligence of a good father of a family (i.e., an objective standard of care), unless the law requires or the parties agree otherwise; (CIVIL CODE, art. 1163)

The law or contractual stipulation may require a different degree of diligence: greater or extraordinary diligence (diligentia exactissima), or less or slight diligence (diligentia levissima).

• To deliver fruits, whether civil, industrial, or natural fruits (obligor is liable for fruits only from the time the obligation to deliver arises); and
• To deliver accessions and accessories (CIVIL CODE, art. 1166)
• Accessions – incorporated or attached to the object to form part of the principal.
• Accessories – added for completion, use perfection or embellishment.
• To give a generic thing (CIVIL CODE, arts. 1246 & 1170)
• To deliver the thing of the quality intended by the parties, taking into consideration the purpose of the obligation, intent of the parties, and other circumstances. (CIVIL CODE, art. 1246)
• To pay damages in case of breach of the obligation. (CIVIL CODE, art. 1170)

Transmissibility of Obligations

General Rule: All rights acquired in virtue of an obligation are generally transmissible (CIVIL CODE, art. 1178)

Exception: Rights acquired by virtue of an obligation are NOT transmissible when:

• Prohibited by law – Examples:
• A partner’s interest in a partnership may be assigned, but the assignment does not, by itself, make the assignee a partner or confer management rights (CIVIL CODE, art. 1813)
• Contract of agency (CIVIL CODE, art. 1868)
• Contract of commodatum (CIVIL CODE, art. 1933)
• Prohibited by stipulation of the parties, as long as it is not contrary to public policy.
• The obligation is purely personal in nature — when the obligor’s personal qualifications and skill was the motive behind the contract.

Effect of remission in general

It extinguishes the obligation in its entirety or in the part or aspect thereof to which the remission refers.