Art.

1163 NATURE AND EFFECTS OF OBLIGATION 29

Gutierrez vs. Gutierrez

Facts: A passenger bus and a private car collided while trying to pass each other on a narrow
bridge. A passenger riding in the passenger bus was injured. He sued for damages. The plaintiff
made as defendants the following: (a) the owner of the bus although a chauffeur was driving the
bus: (b) the owner of the private car as a defendant although he was not in the car. His car was
driven by his 18-year old son. In the car were some members of his family.

Held: Both drivers were found negligent. The owner of the passenger bus was made liable based
on the breach of the contract of carriage; the owner of the car was made liable based on Art.
2180 of the Civil Code. There was culpa contractual on the part of the owner of the passenger
bus and culpa aquiliana on the part of the owner of the car.

Chapter 2
NATURE AND EFFECT OF OBLIGATIONS

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 the family, unless the law of the stipulation of the parties
requires another standard of care. (1094)

Source: Art. 1094, Old Civil Code.

COMMENT:

Duty of an Obligor Obliged To Deliver A Determinate Thing. – The Article speaks of an

2. When the Obligation is subject to a suspensive condition, the obligation to deliver arises from
the happening of the condition.

3. When the obligation is subject to a suspensive term or period, the obligation to deliver arises
upon the lapse of the term or period.

4. When there is no condition or term (period), the obligation to deliver arises from the
constitution, creation or perfection of the obligation (8 Manresa 44-45).

Duty of Trustees to Account for Fruits. – Possession of lots which produce should make
an accounting thereof to the beneficiaries from the time they become aware that they were only
trustees of the property in accordance with Art. 1164 (De Leon vs. Molo-Peckson, 116 Phil.
1267; Molo-Peckson vs. Tanchuco, 100 Phil. 344).

Classes of Delivery or Tradition. –

1. Real or Actual Tradition – This contemplates he actual delivery of the thing from the
hand of the grantor to the hand of the grantee if the thing is a personalty.” If it is a realty,
it is manifested by certain possessory acts executed by the grantee with the consent of the
grantor such as by taking over the property; or by entering it and occupying it.
2. Constructive Tradition – There is constructive tradition when the delivery of the thing is
not actual but representative or symbolical in essence. But there must be the intention to
deliver the ownership (10 Manresa 132). The following are the kinds of constructive
condition—
a. Tradicion Symbolica – It consists in the delivery of certain symbols or things
representing the thing being delivered such as keys or titles (See Art. 1501):
b. Tradicion Instrumental – It consists in the delivery of the instrument of
conveyance to the grantee by the grantor (See Art 1498: Tablante vs. Aquino,
28 Phil. 35: Marella vs. Reyes, 12 Phil. 1).”
c. Tradicion Longa Manu – It consists in the pointing of the thing (movable
property) within sight, by the grantor to the grantee but which at the time of
the transaction, the thing could not be placed yet in the possession of the
grantee”
d. Tradicion Brevi Manu – It consists in the grantee’s continuation of his
possession over the thing delivered but now under a title of ownership. This is
exemplified in the case of a lessee who had purchased the property leased to
him and thereafter continues to possess it as the owner thereof ( See Art.
1499)
e. Tradicion Constitutum Possessorium – It consists in the owner’s continuous
possession of the property he had sold to another possession of the property he
had sold to another person, and his present possession thereof is no longer that
 of an owner but under another capacity like a lessee, pledgee, depository, etc.
(See Art. 1500).
In effect, it is the opposite of tradition brevi manu.
f. Tradicion by Operation of Law – It consists in the delivery of the thing by
operation of law such as in intestate succession where inheritance is
transferred to the heir upon death of the decedent.
g. Quasi-tradicion – It consists in the delivery of incorporeal property like rights
and credits done through the (a) placing titles of ownership in the hands of the
grantee or his representative or (b) by allowing the grantee to make use of the
rights with the consent of the grantor. (Art.1501)

Ownership is not transferred by the mere perfection of the contract but by delivery which could
be either actual or constructive (Sampaguita Pictures vs. Jalwindor Manufacturers, 93 SCRA
420). Our law does not adhere to the Italian and French doctrine of transfer of ownership by
mere consent. Ownership vests only from the delivery of the thing (Tan Leonco vs. Go Inqul, 8
Phil. 531).

Effect of Lack of Delivery in Sale – A sale of a parcel of land which is simulated or even if it is
real one, where there was no delivery, no transfer of ownership is effected (See Cruzado vs.
Bustos and Escaler, 34 Phil. 17). In certain contracts, it is delivery that transfers ownership and
not the agreement (10 Manresa 339; Fidelity and Deposit Co. vs. Wilson, 8 Phil. 51).

Remedy of Buyer when there is no Delivery in Sole of Property. – The remedy of the buyer
when there is no delivery despite demand is to file a complaint for “Specific Performance and
Delivery.” Because he is not yet the owner of the property before the delivery. An accion reivin
–dicatoria is not the proper remedy because such action presupposes ownership on the part of the
buyer.