ART. 1262.

An obligation which consists in the delivery of a determinate thing shall be extinguished if

it should be lost or destroyed without the fault of the debtor, and before he has incurred in delay. When
by law or stipulation, the obligor is liable even for fortuitous events, the loss of the thing does not
extinguish the obligation, and he shall be responsible for damages. The same rule applies when the
nature of the obligation requires the assumption of risk. (1182a)

When a thing considered lost.

It is understood that the thing is lost when it perishes, or goes out of commerce or disappears in such a
way that its existence is unknown or it cannot be recovered. (Art. 1189, par. 2.)

the thing is lost through the fault of the debtor, he shall be obliged to pay damages; it is
understood that the thing is lost when it perishes, or goes out of commerce, or
disappears in such a way that its existence is unknown or it cannot be recovered;

Loss of a determinate thing under Article 1262 (par. 1.) is the equivalent of impossibility of performance
in obligations to do referred to in Article 1266.

Which will be later discussed by the next reporter.

But “loss of the thing due,” as used in Article 1231(1) and the above section, extends to both obligations
to give and obligations to do.

When loss of thing will extinguish an obligation to give.

In order that an obligation to give may be extinguished by the loss of the thing, the following requisites
must be present:

(1) The obligation is to deliver a specific or determinate thing;

(2) The loss of the thing occurs without the fault of the debtor; and

(3) The debtor is not guilty of delay.

Lastly when do you consider the loss of a thing will not extinguish liability.

There are cases, however, when the loss of the specific thing even in the absence of fault and delay will
not exempt the debtor from liability. They are:

(1) when the law so provides (Arts. 1170, 1165[par. 3], 1263.);

ARTICLE 1170. Those who in the performance of their obligations are guilty of fraud, negligence,
or delay, and those who in any manner contravene the tenor thereof, are liable for damages.
(1101)
 ARTICLE 1165. When what is to be delivered is a determinate thing, the creditor, in addition to the
right granted him by article 1170, may compel the debtor to make the delivery.

If the thing is indeterminate or generic, he may ask that the obligation be complied with at the
expense of the debtor.

If the obligor delays, or has promised to deliver the same thing to two or more persons who do
not have the same interest, he shall be responsible for any fortuitous event until he has effected
the delivery. 

ARTICLE 1263. In an obligation to deliver a generic thing, the loss or destruction of anything of
the same kind does not extinguish the obligation.

(2) when the stipulation so provides;

(3) when the nature of the obligation requires the assumption of risk (par. 2; see Art. 1174.); and

(4) when the obligation to deliver a specific thing arises from a crime. (see Art. 1268.)