Articles 1165 to 1167 | The Law on Obligations and Contracts |Book IV, Civil Code of the Philippines
Summary
Highlights
Attorney Jen Estabilo introduces the discussion on Articles 1165 to 1167 of the Civil Code, building on previous lectures about earlier articles. Article 1165 covers obligations to deliver a thing.
For a determinate or specific thing (e.g., a car with plate number ABC 123), the creditor can compel delivery, seek rescission with damages, or claim damages if specific performance or rescission is not feasible. The delivery must be of the specific thing itself and legal recourse, not personal force, must be used to compel delivery.
For an indeterminate or generic thing (e.g., a sack of rice or a Toyota sedan), the creditor can demand compliance at the debtor's expense, or a third person can perform the delivery since 'genus never perishes.' The debtor is still liable for damages under Article 1170 if they fail to deliver.
The debtor is liable for fortuitous events if in delay or if they promised the same determinate thing to two or more creditors with conflicting interests, as this constitutes a breach of agreement. Ordinarily, fortuitous events excuse liability, but these are exceptions.
The Constitution prohibits imprisonment for debt due to financial incapacity. Subsidiary imprisonment is only applicable if the civil liability arises from a criminal case, not from mere indebtedness.
The obligation to deliver a determinate thing implicitly includes its accessions (additions/improvements, like trees or houses on land, dividends, rent) and accessories (items for better use or completion, like keys to a house, frames for paintings) even if not explicitly mentioned.
Generally, accessions and accessories are included with the principal unless expressly excluded by stipulation. The rationale is that they derive their existence or utility from the principal. Jurisprudence clarifies that buying improvements on land does not automatically transfer land ownership unless stipulated, but leasing a building implies leasing the land it stands on.
Accession is also an ownership right under Article 440, granting the owner rights over the fruits and accessories of the property, though it's not a mode of acquiring ownership itself.
Article 1165: Creditor remedies for specific things include compelling delivery, rescission, or damages; for generic things, performance by debtor or third party since 'genus never perishes.' Debtor is liable for fortuitous events in cases of delay or double promise. Article 1166: Obligation to deliver determinate things includes accessions and accessories unless stipulated otherwise.
Article 1167 covers positive personal obligations (to perform an act or render a service) in three scenarios: debtor fails to do what was promised, debtor does it in contravention of the agreement, or debtor performs it poorly. Creditors always have remedies for such breaches.
Creditors have three remedies: 1. Have the obligation executed at the debtor's expense (e.g., hiring another contractor). 2. Ask the court to undo improperly done acts if possible (e.g., ordering repainting). 3. Recover damages under Article 1170 (actual, moral, exemplary).
Specific performance cannot be compelled in obligations to do if it amounts to involuntary servitude (e.g., forcing a painter to paint). However, if the obligation doesn't involve the debtor's personal qualifications, another can execute it at the debtor's cost. If unique personal qualifications are involved, only damages can be claimed.
Case examples illustrate Article 1167: a debtor failing to repair a typewriter and returning it in worse condition is liable for repair costs and missing parts. A building collapse due to faulty construction makes the builder and architect solidarily liable for damages and reconstruction. Other examples include a contractor failing to construct a garage, a tailor using wrong fabric, and a mechanic leaving a car in worse condition, all resulting in the debtor incurring costs for correction or damages.
For failure to do, doing contrary to terms, or poorly done work: creditor can have it done at debtor's cost, undo the work, plus damages. If it's a personal service based on the debtor's unique skill, only damages are possible, with no substitute performance.
The next lecture will cover Article 1168, which deals with obligations 'not to do,' where if the obligor does what was forbidden, it shall be undone at their expense, distinct from obligations 'to do' in Article 1167.