Creditor's remedies in cases of breach

In cases where the obligor breached his/her obligation, s/he shall be liable for damages.[1] If the obligation to give a specific thing is breach by the debtor, the creditor may either compel the debtor to make delivery (specific performance)[2] or rescind.[3] Moreover, if the debtor fails to comply with his obligation to do and give a generic thing, the creditor may: a) to have the obligation performed by himself, or by another unless personal considerations are involved, at the debtor’s expense; b) in case the obligation is done in contravention of the terms of the same or is poorly done, it may be ordered (by the court) that it be undone if it is still possible to undo what was done[4]; and c) to recover damages.When a negative (not to do) obligation is breached, as a rule, the remedy of the obligee is the undoing of the forbidden thing plus damages.[5] However, if it is not possible to undo what was done, either physically or legally, or because of the rights acquired by third persons who acted in good faith, or for some other reason, his remedy is an action for damages caused by the debtor’s violation of his obligation.[6]

[1] Article 1170, Civil Code.

[2] Par. 1, Art. 1165, Civil Code.

[3] Article 1191, Civil Code.

[4] De Leon. (2014). Obligations and Contracts.

[5] Article 1170, Civil Code.

[6] 8 Manresa 58.

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