Ramon Magsaysay Memorial Colleges, General Santos City LAW ON OBLIGATION & CONTRACTS

CHAPTER 2. NATURE AND EFFECT OF OBLIGATIONS

1. PRESTATION

2. BREACH OF OBLIGATION

3. REMEDIES OF CREDITORS

3.1. TRANSMISSIBILITY OF RIGHTS

3.1.1. General Rule: All rights acquired in virtue of an obligation are generally transmissible. (Art.
1178)
3.1.2. Exceptions:
3.1.2.1. Prohibited by law
3.1.2.2. Prohibited by stipulation of the parties

3.2. PRIMARY REMEDIES OF THE CREDITOR (PRESS) Art. 1165 -1168

3.2.1. SPECIFIC PERFORMANCE performance by the debtor of the prestation itself
3.2.2. SUBSTITUTED PERFORMANCE someone else performs or something else is performed
at the debtors expense
3.2.3. EQUIVALENT PERFORMANCE right to claim damages (in either performance or
rescission)
3.2.4. RESCISSION right to rescind or cancel the contract
3.2.5. PURSUE THE LEVIABLE to attach the properties of the debtor, except those exempt by
law from execution

3.3. SUBSIDIARY REMEDIES OF THE CREDITOR

3.3.1. Accion Subragatoria After having pursued the property in possession of the debtor,
exercise all the rights (like the right to redeem) and bring all the actions of the debtor22
(like the right to collect from the debtor of his debtor) except those inherent in or personal
to the person of the latter (such as the right to vote, to hold of ce, to receive legal support,
to revoke a donation on the ground of ingratitude, etc.)
3.3.2. Accion Pauliana Ask the court to rescind or impugn acts or contracts which the debtor
may have done to defraud him when he cannot in any other manner recover his claim
3.3.3. Accion Directa The right of lessor to go directly to a sublessee for unpaid rents of the
lessee
3.3.4. The right of laborers or persons who furnish materials for a piece of work undertaken by a
contractor to go directly to the owner for any unpaid claim due to the contractor
3.3.5. The right of vendor against every possessor whose right is derived from the vendee
3.3.6. The right of a principal against a substitution appropriated by an agent

4. USURY LAW

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