Note: Although the delivery of determinate thing includes all its accessions and accessories, the
parties in the contract may stipulate that certain accessions or accessories may not be included in
Art. 1163 Every Person obliged to give something is also obliged to take care of it with
proper diligence of a good father of a family unless the law or the stipulation of the parties
requires another standard of care.
Ang bawat tao na obligado na magbigay ng isang bagay ay obligado rin na pangalagaan ito
na may tamang pagkalinga tulad ng isang ama ng tahanan, maliban kung ang batas o ang
stipulasyon ng mga partido ay nangangailangan ng iba pang pamantayan ng pagaalaga.
Reason for provision – the obligation to deliver the thing would be illusionary if the debtor and will
pertain to another it is a condition suitable for its enjoyment by the obligee for the purpose of
contemplated.
Diligence Required – preserving the thing ,law requires the diligence of a good father of a family
Effect of Breach – the obligation to preserve the thing to be delivered has its sanction in the liability
for damages imposed upon the debtor who fails the exercise of diligence of a good father of a family
preserving the thing. But if the failure of the debtor to preserve the thing is due to no fault or
negligence of his but fortuitous event or force. He is exempted from the responsibility
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. (1097a)
Kasama sa obligasyon na magbigay ng determinadong bagay ang pagbibigay ng lahat ng
accessions at accessories nito kahit na hindi sila nabanggit.
Gen. Rule :
Obligation to deliver the object includes with it the accessories and accessions.
Exception to the Rule:
a. Required by law
b. Exclusion is expressly stipulated by the parties.
Accession – includes everything produced by a thing, as well as all incorporated or attached with it,
may it be natural or artificial
Accession discreta – right to the fuits
Accession continua – includes both accession natural (i.e. alluvial deposits) and accession
industrial (i.e. those built, planted or sowed on the land of the landowner)
Accessories – includes things that are united or attached as ornaments to the principal thing, for the
latter’s use or perfection (i.e. spare tire of a car, television antennas, cellphone chargers, moviehouse
chairs, etc.)
the delivery. Both parties have the freedom to stipulate such things.
ACCESSORIESThose things which are used for the preservation of another thing or more important,
have for their object the completion of the latter for which they are indispensable or convenient.
ACCESSIONS
Includes everything which is produced by a thing, or which is incorporated or attached thereto,
either naturally or artificially.
Article 1169
Those obliged to deliver or to do something incur in delay from the time the obligee judicially or
extrajudicially 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 declare; 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. (1100a)
Ang mga obligadong mag hatid o magsagawa ng isang bagay ay mababalam mula sa oras na ang
obligee ay judicially o extra judicially na hiningi na maisagawa o maihatid ang bagay na ito.
Ngunit, ang paghingi o pag demand ng obligee o ng nagpautang ay hindi kinakailangan upang
masabi na mayroon nang balam sa mga sitwasyon na ito:
Kapag nakasaad ito sa obligasyon o sa batas.
Kapag ayon sa kallikasan ng obligasyon na ang pag tatakda ng oras ay ang nag cocontrol na motibo
ng pagtatala ng kontrata.
Kapag ang demand o paghingi ay walang bisa. Katulad ng pagkakataon na naisakatuparan na ng
obligor ang bagay na ito ng higit pa sa kakayahan nyang maikumpleto o maisakatuparan ito.
Sa reciprocal obligations, wala sa sino mang piging ay mababalam kung ang isa ay hindi
isasakatuparan o hindi handa na isagawa ang bagay na ito sa tamang paraan. Kapag nagawa na ng
isang piging ang kanyang obligasyon, ang balam ng isa ay magsisimula.
The delay contemplated in the article is legal delay or default and not ordinary delay. To put an
obligor in default (or mora), there must be demand made upon him for the performance of the
obligation either judicially or extrajudicially.
Demand is not necessary to place the obligor in default under the following circumstances:
When the law or obligation expressly declares;
When from the nature of the contract, it appears that the time is of the essence and this is the
motivating factor in the establishment of the contract;
When demand would be useless;
When the debtor admits, he is in default.
Classes of Default
Mora solvendi – the default on the part of the debtor/obligor;
Mora accipiendi – the default on the part of the creditor/obligee;
Compensatio morae – the default on the part of both the debtor/obligor and creditor/obligee which
arises in reciprocal obligations the effect is the default of one party neutralizes the default of the
other.
What is Delay?
Delay or default or mora is the non fulfillment of an obligation with respect to time. It is when
someone does not fulfill an obligation within the time given unto him.
There are three kinds of delay namely:
I. Mora solvendi - it is a delay on the part of the debtor
a. Ex re - delay in real obligations (to give)
b. Ex persona - delay in personal obligations (to do)
Tips: to easily memorize the two, re for real, persona for personal. Always keep in mind that the
debtor can only have an obligation to give, to do, and not to do, so he can only be delayed between
the two, to give and to do, because there is no delay in not to do. One cannot be in delay for not
doing at all.
II. Mora accipiendi - it is a delay on the part of the creditor
How can a creditor be in delay?
A creditor can be in delay if the debtor fulfills his obligation but the creditor refuses to accept the
thing due without justifiable reason. It must be an unjustifiable reason so as delay to exist.
Tips to easily remember: accipiendi sounds the same with accept. And who accepts? it is the
creditor. So accipiendi is delay in accepting a fulfillment of an obligation by the creditor.
III. Compensatio morae - it is a delay in reciprocal obligations. It is therefore the creditor and debtor
who are in default. If both is in delay therefor in effect there is no delay at all.
When can a debtor be considered in delay?
General Rule: No demand no delay!
The debtor incurs in delay from the time the obligee judicially or extrajudicially demands from them
the fulfillment of their obligation but the debtor failes to perform his obligation. Again the general
rule apply that if there is no demand there is no delay. Demand is a must.
For delay to exist the following must be present:
a. The obligation must be due and demandable
b. The debtor does not perform his obligation
c. The creditor demands for the performance of the obligation judicially or extra-judicially
d. The debtor fails to comply to such demand
Example: Asbonclz obliged to give Heda a specific car on January 1, 2018. On Jan. 1, 2018 Asbonclz failed to
give and deliver a specific car to Heda. Since Heda wanted a car, she extra-judicially demand Asbonclz's
performance by summoning him to Baranggay Saray Hall to execute what they had agreed upon. Though
Kapitan Tiago, Baranggay Saray Chairman, mediated for the two to settle their disagreements by making the
two agreed to a common understanding that the car will be delivered on Jan. 10 instead. But when Jan. 10
came still Asbonclz failed to deliver the car to Heda..
From the example, Asbonclz is in delay. First, his obligation to give is already due and demandable. Second,
Asbonclz did not give the specific car ( a non-performance of obligation. Third, Heda extrajudicially demanded
the delivery of such specific car. And lastly, Asbonclz failed to comply to such demand by not delivering the car
again after Heda's extrajudicial demand. Hence Asbonclz is really in delay.
Exceptions to the General Rule:
Article 1169 are the exceptions to the general rule in where demand is not necessary in order for delay to
exist.
There is no need for demand in order for delay to exist in the following cases:
a. The obligation or the law expressly so declare
Examples:
(LAW) In paying taxes, if someone does not pay on time then such person would be penalized in accordance
with the law. There is no need for the BIR to demand in order for delay to exist because the law clearly
expresses so. Hence, such person would be penalized automatically because he is already in delay from the
time the due date to pay taxes elapse.
(OBLIGATION) There is no need for demand when both parties agreed to an obligation to give that when the
debtor fails to deliver the thing on time such debtor would be penalized. The stipulation of the parties renders
the need for demand in order for penalty to materialize is unimportant
b. When time is of the essence of the contract
Example: Juliet is about to be married with Romeo on Nov. 1, 2018 at 5PM in Hotel California. She made a
contract with Asbonclz, a famous tailor, to make her bridal gown according to her specifications. On Nov.
1,2018 Asbonclz failed to make the gown. Since the gown is to be used only on its intended purpose which is
their wedding day on Nov. 1, Asbonclz is already in delay and will be liable since after Nov. 1 the gown would
be useless anymore to Juliet. There is no need of demand for delay to exist because time was the controlling
motive for the establishment of the contract.
c. Demand would be useless
When the performance of the obligation is beyond the power of the debtor then such demand would be
useless. Demand would be useless if the thing the debtor is obliged to give has been destroyed through his
fault or he has delivered it to another person not of the same interest.
d. 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.
What are the effect of delay?
As to debtor:
a. Debtor shall be liable for damages (Art. 1170)
b. If obligation to deliver determinate thing, debtor shall be responsible for any fortuitous event until he has
effected the delivery. (Art. 1165)
As to criditor:
a. Debtor may resort to consignation of the thing due. (Art 1258)
b. Creditor shall bear the risk of loss and shoulders the expenses for preservation of the thing.
Consignation - depositing the thing due to a court of law, when the creditor unjustifiably refuses to accept such thing, as an act of fulfillment of his obligation to free
himself from burden.
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. (1101)
Ang mga nagsasagawa ng kanilang obligasyon na may kasalanan ng fraud, nagligence, o delay o balam at sa
mga nagsasagawa ng kanilang obligasyon na hindi ayon sa napagkasunduan ay mananagot sa mga danyos.
Discussion
Fraud – A false representation of a matter of fact—whether by words or by conduct, by false or
misleading allegations, or by concealment of what should have been disclosed—that deceives and is
intended to deceive another so that the individual will act upon it to her or his legal injury.
Negligence – Conduct that falls below the standards of behavior established by law for the protection
of others against unreasonable risk of harm. A person has acted negligently if he or she has departed
from the conduct expected of a reasonably prudent person acting under similar circumstances.
Fraud may be defines as the voluntary execution of wrongfull act or willful ommission,knowing and
intending the effects which naturally arise from such ommission. In this article fraud is referred to
as the deliberate evasion from an obligation. Fraud in this article also involves malice in the act of
evasion from an obligation.
Non-performance by fault or negligence is known as Culpa Contractual or the fault of the debtor as
an incident if fullfilling an existing obligation.
Excuse for non-performance of an obligation is only valid if it is due to fortuitous event.
Damages are refered to as any damage caused in any human being. It can be in the form of money,
Physical damage,moral damage, mental damage etc.
If the damage is in the form of money and the damage to be incurred from is not indicated in the contract, a
legal interest of 6 percent per year will be observed in computing for damage
Grounds for Liability to Pay Damages
Fraud or Dolo
Negligence or Culpa
Delay or Mora
Contravention of the term of the agreement
Fraud– voluntary execution of a wrongful act, or willfull omission, knowing and intending the effects
w/c will arisefrom such acts or omissions
Incidental Fraud(dolo incidente) – c o m m i t t e d i n t h e performance of an obligation already
existing because ofcontract
Causal Fraud(dolo causante) – f r a u d e m p l o y e d i n t h e execution of a contract
.Kinds of Damages
M– Moral and Physical AnguishE – Exemplary – corrective or to set an exampleN– Nominal – to vindicate the
rightT–Temperate – exact amount cannot be determinedA– Actual – actual losses and unrealized profitL–
Liquidated–pre-determined beforehand by agreement
Damage– r e f e r s t o t h e h a r m d o n e a n d w h a t m a y b e recovered
Injury– Refers to the wrongful or unlawful act
Grounds for liability to pay damages (Art. 1170)
a. Fraud
b. Negligence
c. Delay
d. Contravene the tenor of an obligation.
What is Damages?
The word "damage" is used in two concepts: the "harm" done and "reparation" for the harm done.
And with respect to harm it is plain that it includes both injuries to person and property since
"harm" is not limited to personal but also to property injuries. (Cinco vs Canonoy, G.R. No. L-33171
May 31, 1979)
What are the kinds of damages?
Tips to Easily Memorize: MENTAL
a. Moral damages - They include physical suffering, mental anguish, fright, serious anxiety,
besmirched reputation, wounded feelings, moral shock, social humiliation, and similar injury.
Though incapable of pecuniary computation, moral damages may be recovered if they are the
proximate result of the defendant's wrongful act for omission. (Art. 2217)
b. Exemplary or corrective damages - They are imposed, by way of example or correction for the
public good, in addition to the moral, temperate, liquidated or compensatory damages. (Art. 2229)
c. Nominal damages - They refer to damages to vindicate a right (Art. 2221)
d.Temporate or moderate damages - They are more than nominal but less than compensatory
damages, may be recovered when the court finds that some pecuniary loss has been suffered but its
amount can not, from the nature of the case, be provided with certainty. (Art. 2224)
e. Actual or compensatory damages - These refers to adequate compensation for pecuniary loss
suffered and has been duly proved that may be recovered. It includes not only the value of the loss
suffered, , but also that of the profits which the obligee failed to obtain. (Art. 2199 & 2200)
f. Liquidating damages - are those agreed upon by the parties to a contract, to be paid in case of
breach thereof. (Art. 2226)
What is Fraud and Negligence?
Fraud is the intentional deception of a person or entity by another made for monetary or personal
gain. Also, fraud is the deliberate or intentional evasion by the debtor to perform his obligation on a
normal way. Fraud when, through insidious words or machinations of one of the contracting parties,
the other is induced to enter into a contract which, without them, he would not have agreed to.
(Art. 1338) While negligence is a failure to behave with the level of care that someone of ordinary
prudence would have exercised under the same circumstances. The behavior usually consists of
actions, but can also consist of omissions when there is some duty to act (e.g., a duty to help victims
of one's previous conduct). Negligence consists in the omission of that diligence which is required by
the nature of the obligation and corresponds with the circumstances of the persons, of the time and
of the place. (Art. 1173)
FRAUD or dolo
What are the different kinds of fraud?
A. According to meaning
1.Fraud employed in obtaining consent
a. dolo causante or causal fraud
fraud used to obtain the consent of the other party. It refers to fraud without which consent would
not have been given. It makes a contract voidable
Example: Romeo sell his ring that is aluminum plated with gold to Juliet telling her that the ring is
made of 18 karat gold. Romeo knew all along that it was not made of 18 karat gold but made it looks
like. Juliet bought the ring relying upon what Romeo told him. Juliet here gave her consent to buy
Romeo's ring because of the fraud employed by Romeo. Hence, Romeo will be liable for damages and
the contract of sale between the two is voidable.
b.dolo incidente or incidental fraud
This refers to fraud without which consent would still been given but the person giving it would not
have agreed but may agree on different terms. The person employing fraud will be liable for
damages.
Example: Juliet applied to be an IT specialist of ABC company owned by Romeo. Romeo upon
reading Juliet's resume learned that Juliet is an IT expert with a masters degree. However, Juliet was
in fact an IT graduate only with no masters degree. Romeo hired Juliet and gave her $10000 salary a
month. If Romeo would have hired Juliet even if she didn’t have a masters degree but that Romeo
would have given a salary of $5000 a month to Juliet. Juliet in this example committed an incidental
fraud and it would entitle Romeo to recover damages.
2. Fraud employed in the performance of an obligation Negligence that results to a commission of a crime.
(Art. 2176)
It is the deliberate or intention act to evade the performance of an obligation in a normal manner.
This will not have any effect on the validity of a contract since it was employed after the perfection
of such contract. The party employing such fraud will be liable for damages.

B. According to the time of the commission of the fraud

Past fraud committed can be waived by the creditor. The waiver of such fraud is an act of liberality
on the part of the creditor

Future Fraud

Any waiver of an action for future fraud is void. If the parties agreed for a waiver of a fraud that is to
be committed is void. The law discourages the employment of fraud even if consent for its
commission has been granted. Thus, a debtor will still be liable for fraud committed even if there is
such a waiver.

Example: Romeo went to Juliet gasoline station to fuel up his car. Romeo and Juliet agreed that on
his next fueling up Juliet can mix water to the gasoline in fueling his car and that he will waived his
rights. During Romeo's next fueling in the station Juliet fuel up his car with a water mixed gasoline.
In this example, though Romeo gave a waiver to Juliet still Juliet will be liable for fraud committed
since such waiver is void. And the law does not want any employment of fraud.

Negligence
What are the different kinds of negligence?
Culpa Contractual (contractual negligence)

Negligence on the performance of a contract.

Culpa Aquiliana (tort or quasi-delict)

Act or omission causes damage to another, ... there being no pre-existing contractual relation
between the parties.
(Art. 2176)

Culpa Criminal (criminal negligence)