Art. 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.

Art. 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.

Art. 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 the delivery. 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 any fortuitous event until he has
effected the delivery.

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.

▶ 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.

▶ Art. 1168. When the 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 declares; 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.

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.

Art. 1171.

Responsibility arising from fraud is demandable in all obligations.

Any waiver of an action for future fraud is void.

Refers to INCIDENTAL FRAUD

▶ Responsibility arising from fraud can be demanded with respect to all kinds of obligation;

▶ Unlike in the case of responsibility arising from negligence, the court is not given the power
to mitigate or reduce the damages to be awarded in case of fraud. This is so because fraud is
deemed serious and evil that its employment to avoid the fulfilment of one’s obligation should
be discouraged.

Waiver of action for future fraud - VOID

▶ According to the time of commission, fraud may be past or future.

▶ A waiver of an action for future fraud is void (no effect, as if there is no waiver) as being
against the law and public policy.

▶ A contrary rule would encourage the perpetration of fraud because the obligor knows that
even if he should commit fraud he would not be liable for it, thus making the obligation illusory.
1. Rights and obligations a. Creditors 1) To demand that a thing to be given
is taken cared of 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. (1094a) (CIVIL CODE) 2) To compel delivery of a thing
subject of an obligation 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 the delivery… (1096) (CIVIL
CODE) a) Generic thing Article 1165. x x x If the thing is indeterminate or
generic, he [the creditor] may ask that the obligation be complied with at
the expense of the debtor. … (1096) (CIVIL CODE) b) Determinate thing
Article 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) (CIVIL CODE) c) Fortuitous event liability Article
1165. x x x 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 any fortuitous event until he has effected the delivery.
(1096) (CIVIL CODE) Thus, the obligor is liable despite fortuitous in case of:
1) Delay; or 2) Promised to deliver the same thing was made to two or more
persons. 3) To receive the fruits of a thing 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. (1095) 4) To have obligation done by another at
obligor’s expense a) Where obligor fails to do so Article 1167. If a person
obliged to do something fails to do it, the same shall be executed at his cost.
(1098) (CIVIL CODE) b) Where obligor contravenes tenor of obligation
Article 1167. x x x 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. (1098) (CIVIL CODE) 5) To have
obligation undone by another at obligor’s expense Article 1168. When the
obligation consists in not doing, and the obligor does what has been
forbidden him, it shall also be undone at his expense. (1099a) (CIVIL CODE)
NB: The above-mentioned rights and obligations are not exhaustive.
Additional rights and obligations may be provided for by other legal
provisions and/or laws. b. Debtors 1) To take care of a thing to be given
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.
(1094a) (CIVIL CODE) 2) To deliver a thing subject of an obligation 3) To
deliver the fruits of a thing 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. (1095) 4) To pay for expenses on obligations done by another a) Where
obligor fails to do so Article 1167. If a person obliged to do something fails
to do it, the same shall be executed at his cost. (1098) (CIVIL CODE) b)
Where obligor contravenes tenor of obligation Article 1167. x x x 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. (1098) (CIVIL CODE) 5) To pay for expenses for acts requiring
undoing by another Article 1168. When the obligation consists in not doing,
and the obligor does what has been forbidden him, it shall also be undone at
his expense. (1099a) (CIVIL CODE) NB: The above-mentioned rights and
obligations are not exhaustive. Additional rights and obligations may be
provided for by other legal provisions and/or laws.