Art.

1169 – When in delay

Ordinary delay – failure to perform an obligation on time
Legal delay or default – failure to perform an obligation on time even after judicial
or extrajudicial demand is made.
- No legal delay in negative personal obligation.

Kinds of legal delay or default

a) Delay of the debtor to perform his obligation (mora solvendi)
b) Delay of the creditor to accept the performance of the obligation (mora
accipiendi)
c) Delay in reciprocal obligations (compensation morae)

Demand is not necessary and debtor is still in delay.

a) Stipulated
b) Provided by law i.e. payment of taxes
c) Nature and circumstances of the obligation i.e. wedding gown
d) Demand is useless i.e. when the thing was lost due to negligence of the
debtor
e) In reciprocal obligations when the other party fulfills or is ready to fulfill his
obligation i.e. sale

Art. 1170 – grounds for liability for damages

1) Fraud
2) Negligence
3) Delay
4) Contravention or violation of the terms of the obligation.

1) Fraud
- incidental fraud or fraud in the performance (damages)
- Not causal fraud or fraud employed in getting ones consent (voidable)
- any waiver of an action for future fraud is void (Art. 1171) based on law
and public policy
- a past fraud can be subject of a valid waiver of action.

2) Negligence
- voluntary act or omission, there being no malice, which prevents the
normal fulfilment of the obligation
- either contractual negligence (culpa contractual), civil negligence (culpa
aquiliana/quasi-delict), or criminal negligence (culpa criminal)
- waiver of action for future negligence is valid except those which requires
extraordinary care (common carrier)
- waiver of action for past negligence is also valid
- when negligence shows bad faith or deliberate, considered fraud (Art.
1173)
Other provisions
Art. 1175 – usurious transactions (legally non-existent)
Art. 1176 – disputable presumption as to the payment of interest and the
payment of a prior installment
- Interest is presumed paid if the principal is paid unless
reserved.

- Later installment is presumed paid if prior installment is

paid unless indicated that prior installment is not paid.
- Presumption does not apply to the payment of taxes

Art. 1177 – remedies of the creditor to satisfy their claims (damages)

1) Levy the property of the debtor (except those exempt from attachment)
2) Redeem the property of the debtor which is mortgaged.
3) Collect from the debtor of the debtor
4) Ask for cancellation of the contracts that defraud the creditor.

Art. 1178 – transmissibility of rights acquired in an obligation

- All rights acquired by virtue of an obligation is transmissible
except:
a) Prohibited by law i.e. partnership, agency, and
commodatum
b) Prohibited by stipulation (death of the creditor)