1. Which is the correct statement?

First Statement: In conditional obligations, the acquisition of rights, as well as the extinguishment or
loss of those already acquired, shall depend upon the happening of the event which constitutes the
condition.

Second Statement: If the perfection of a contract depends upon the fulfillment of a condition, non-
fulfillment thereof means the non-perfection of the contract since the suspensive condition should
have been first fulfilled.

Choices

Answer: Both statements are correct

2. Which of the following obligations is not demandable at once?

Answer: Jose to give his bar to Pedro. No date was fixed by the parties for the date of delivery

3. Statement I: A stipulation that demand shall not be required in order to make the debtor in
delay is generally to the advantage of the creditor

Statement II: The absence of stipulation on liability in case of fortuitous event is generally to the
disadvantage of the debtor.

Answer: Both statements are erroneous

4. Statement I: If a person obliged to do something fails to do it, the same shall be executed at his
cost.

Statement II: When the obligation consists in not doing, and the obligor does what has been
forbidden him, it shall also be undone at the expense of the obligee.

Answer: Only statement I is correct

5. Statement I: The debtor in alternative obligations is bound by different prestations, one of
which must be completely performed.

Statement II: In making of the choice, the law requires that the choosing party first secure the
conformity of the other party.

Answer: Both statements are correct

6. In an obligation to give an indeterminate thing, the loss or destruction of anything of the same
kind will extinguish the obligation if the cause of the loss is a fortuitous event."

Answer: False

7. In an alternative obligations, the creditor may be compelled to receive part of one and part of
another undertaking

Answer: True

8. Acts of men such as armed, robbery or piracy are considered fortuitous events if they occur
independently of the debtor's will."

Answer: False

9. One of the following is a valid obligation. Which is it?

Answer: Jose promised to give Pedro P100,000.00 if Pedro will not swim across the Pacific Ocean

10. Pacifico borrowed money from Ocsano. It was agreed that at the maturity of debt, Pacifico will
give Oceano either the sum lent or a particular house and lot. Is the stipulation valid?

Answer: No, because the debtor shall have no right to choose those prestations which are
Impossible, unlawful or which could not have been the object of the prestation.

11. Which of the following statements is incorrect?

Answer: When there is a right there is a corresponding obligation Right is the passive aspect
while obligation is the active aspect.

12. A, B and C are joint debtors of W, X, Y and Z, joint creditors, in the amount of P24, 000.00. In
this case, W can demand what?

Answer: P8, 000.00 from A, P8,000.00 from 8, and P8,000.00 from C

13. First statement: A penal clause is an accessory undertaking to assume greater liability in case
of breach. It is attached to obligations in order to insure their performance.
Second Statement: The nullity of the penal clause carries with it the nullity of the principal
obligation.
 Answer: Both statements are correct

14. Which of the following statements concerning delay is incorrect? *

Answer: Delay, as a rule, exists, when the debtor does not perform his obligation on the date it
is due.

15. Ordinary delay is different from legal delay (default)

First Statement: Ordinary delay is merely non-performance of an obligation at the stipulated
time.
Second Statement: Default is that day which amounts to a virtual nonfulfillment of the
obligation.

Answer: Only the second statement is correct

16. When the obligation consists in the delivery of a generic thing whose quality and circumstances
have not been agreed upon?

Answer: purpose and other circumstances shall be taken into consideration in determining the
quality of the object to be delivered.

17. Is that condition whereby a man's assets, if all made immediately available, would not be
sufficient to discharge his obligations or liabilities?

Answer: Assets is more than liabilities

18. Which of the following statements concerning facultative obligation is correct?

Answer: The loss of the principal thing due to fortuitous event will make the debtor obliged
to deliver the substitute.
19. Whenever a period is designated in an obligation, the said period shall be presumed to have
been established for the benefit of:

Answer: Both the debtor and the creditor

20. Which of the following illustrations is an obligation arising from quasl contract?

Answer: The duty of the recipient to return what was delivered to him by mistake (solution
indebiti.

21. Jose sold his only car to Mario tor P1.000.000.00. The parties agreed that 1 pont Jose shall
deliver the car within one month from their agreement. Nothing is mentioned in the
agreement on how the car will be cared for by Jose before delivery.

Answer: Jose must take care of the car with ordinary diligence
22. A is obliged to give this car or this ring or this cigarette case. Nothing is said in the contract as to
who was given the right of choice. Suppose B selects the car, is A bound by the choice made?

Answer: No, A is not bound by the choice made because it is not B but A who, in the absence of
any stipulation is given the right to choose the object he desires to give

23. As a general rule, the debtor incurs in delay if he does not perform his obligation on the date it
is due.

Answer: False

24. The obligation is not extinguished by reason of the loss of the thing through a fortuitous event
in three of the following cases. Which is the exception?

Answer: When the obligation is to give a determinate thing and the parties have not stipulated
whether or not there shall be liability in case of fortuitous events

25. A and B are joint debtors of C, D. E. and F, who are joint creditors to the amount of P1, 000.00.
When the obligation becomes due and demandable

Answer: C can collect only P250.00 from A and P250.00 from 8. D.E, and F, has the same

26. The following obligations are valid, except:

Answer: Jase promised to pay his debt to Pedra amounting to P50, 000.00 as soon as possible.

27. Jose borrowed P1, 000.000.00 with interest at 6% per annum from Pedro. Based on their
agreement, the loan obligation and the interest are due on October 30, 2020.
 Jose may compel Pedro accept payment before October 30, 2020.
 Pedro may compel Jose to make payment before October 30, 2020.
 Both A and B are correct

Answer: Both A and B are incorrect.

28. When the fulfillment of the condition results in the extinguishment of rights arising out of the
obligation is known as

Answer: Resolutory Condition

29. ……….no.5678 and with plate number ABC 00000010 on Soptember 15, 2020. On September
20, 2020 Jose had not yet delivers the car which was totally destroyed by lightning on such
date. Is Jose still liable?
 Answer: Yes. Jose Is In legal delay because he did not deliver the car September 15, 2020. Pedro
can claim damages.

30. Which of the following is not a requisite of fortuitous event?

Answer: Debtor contributed to the aggravation of the injury to the creditor

31. Statement I: "Force majeure is an event caused by the legitimate or illegitimate acts of persons
other than the obligor, while "fortuitous event is an event which is absolutely independent of
human intervention.
Statement II: In our law, fortuitous events and force majeure are identical in so far as they
exempt an obligor from liability. Both are independent of the will of the obligor.

Answer: Only statement I is correct

32. During a flood, the properties of Aldrid Pabaya (Aldrid) were saved from destruction by Ocsan
Matulungin (Ocsan) without the knowledge of Aldrid Pabaya who was then away. Ocsan
incurred necessary and useful expenses in the act of saving Aldric's property. For such
exponses:

Answer: Aldrid must reimburse Ocean although Ocsan acted without the consent of Aldrid.

33. A, B and C are joint debtors of W, X, Y and Z.joint creditors, in the amount of P24,000.00 In this
case, W can demand.

Answer: W can demand 2,000,000 from A, 2,000,000 from B and Same with to C.

34. An obligation where the debtor binds himself to pay when his means permits him to do so is a
conditional obligation.

Answer: False (Obligation is with a period)

35. The right of Jose before the delivery on one hand, and his right after the dellvery, on the other
hand, of the agricultural land and its fruits, to him are referred to as:

Answer: Personal right and real right, respectively

36. Jose, Pedro, and Juan executed the following promissory note. "I promise to pay Maria or order
the sum of P90, 000.00 on September 15, 2020. "I promise to pay Maria or order the sum of
P90, 000.00 on September 15, 2020.

(Sgd.) Jose

(Sgd.) Pedro

(Sgd.) Juan"

On September 15, 2020, Maria can collect from Jose:

Answer: P90,000.00

37. An obligation subject to a resolutory condition is demandable at once *

Answer: True

38. First Statement: A personal right is power demandable by one person of another. - to give, to
do, or not to do.
Second Statement: A real right is a power over a specific thing and is binding on the whole
world.

Answer: Both statements are correct

39. I'll give you my car now but should you pass the civil service professional examination, you
must return the car to me."

Answer: Suspensive condition

40. Buko, Fermin and Toti are solidarily debtors of Ayee. Twelve (12) years after the obligation
became due and demandable, Buko paid Ayee and later on asked for reimbursement of
Fermin's and Toti's share. Is Buko correct? Why?

Answer: Yes, because the obligation is solidary.

41. If the contract does not specify the quality.

I. The creditor can demand a thing of superior quality (but if he desires he may demand
and accept one of inferior quality)
 II. The debtor cannot deliver a thing of inferior quality, but if he so desires, he may deliver
one of superior quality (provided it is not a different kind)

Answer: Only Il is correct

42. If the debtor fails to perform an obligation to do, the creditor may compel the debtor to comply
with the obligation.

Answer: True

43. Three of the following statements pertain to natural obligation. Which one does not?

Answer: There is juridical necessity to perform it.

44. First Statement: If the condition is to do an impossible or illegal thing, only the condition is
void.
Second Statement: If the condition is negative, that is not do an impossible thing, just disregard
the condition but the obligation remains.

Answer: Both statements are correct

45. Statement I: Those obliged to deliver or to do something incur in delay from the time the
obligee judicially or extrajudicially demands from them the fulfillment of their obligation.

Statement II: Demand is always necessary to put a debtor in default.

Answer: Both statements are correct

46. First Statement: In an obligation with a term, the general rule is that the term is for the benefit
of the creditor.
Second Statement: In an alternative obligation, the general rule is that the debtor has the right
of choice.

Answer: Both statements are correct

47. In a joint indivisible obligation, a demand made by one of the joint creditors against all the joint
creditors is a valid demand.
 Answer: False

48. D is obliged to give C either object No. 1 or object No. 2 or object No. 3 at C's option. Before C
communicated his choice to D, object No. 1 had been destroyed thru D's fault and object No. 2
had been destroyed by fortuitous event. What are C's right, if any?

Answer: C can demand either object No. 3 (which is still there); or the price of object No. 1 (with
damages, in either case, because C has been deprived of the right to select).

49. In a joint indivisible obligation, a demand made by one of the joint creditors against all the joint
debtors is a valid demand.

Answer: False

50. Buko, Fermin and Toti bound themselves solidarily to pay Ayee the amount of P5, 000.00.
Suppose Buko paid the obligation, what is his right as against his co-debtors?

Answer: Buko can ask for reimbursement from Fermin and Toti
 INTRODUCTION TO LAW
Concepts of Law

 In its general sense, the term refers to all the laws taken together. It may be defined as "the
mass of obligatory rules established for the purpose of governing the relations of persons in
society”.
 In its specific sense, the term law has been defined as a "rule of conduct, just, obligatory.
Promulgated by legitimate authority and of common observance and benefit" (1 Sanchez
Roman 3.)

Examples of the use of law in general sense are:

 Law of the land

 Rule of law and not of men
 Equality before the laws
 Enforcement of the law, etc.

Characteristics of Law (in its specific sense)

 It is a rule of conduct
 It is obligatory
 It is promulgated by legitimate authority
 It is of common observance and benefit

Sources of Law

 The Constitution
 Legislation
 Administrative or executive orders, regulations and ruling
 Judicial decisions or jurisprudence
 Custom
 Other sources.

Constitution

It is a "body of rules and maxims in accordance with which the powers of sovereignty are
habitually exercised. With particular reference to the constitution of the Philippines, it is a written
instrument enacted by the direct action of the people by which the fundamental powers of the
government are established, limited and defined, and by which those powers are distributed among the
several departments for their safe and useful exercise for the benefit of the body politic.
Legislation

 It consists in the declaration of legal rules by competent authority.

1. Statute-enacted by congress
2. Ordinance-local government units

Administrative or executive orders, regulations and rulings

 They are those issued by administrative officials under legislative authority. Administrative rules
and regulations are intended to clarify or explain the law and carry into effect its general
provisions

Judicial decisions or jurisprudence

 The decisions of the courts, particularly the Supreme Court, applying or interpreting the laws or
the Constitution form part of the legal system of the Philippines.

Custom

 It consists of those habits and practices which through long and uninterrupted usage have
become acknowledge and approved by society as binding rules of conduct. It has the force of
law when recognized and enforced by the law.

Other sources

 Decisions of foreign tribunals, opinions of text writers, and religion. They are however, only
supplementary, that is, they are resorted to by the courts in the absence of all the other
sources. They are, however, not binding on the courts.

Nature of Obligations under the Civil Code

The Law of Obligations and Contracts

 The law of obligations and contracts is the body of rules which deals with the nature and sources
of obligations and the rights and duties arising from agreements and the particular contracts."

Nature of Obligation in Art. 1156

 The definition of obligation in Art. 1156 refers to civil obligations which are enforceable in court
when breached. It does not cover natural obligations (Arts. 1423-1430)because these
obligations cannot be enforced in court being based merely on equity and natural law and not
on positive law.

Civil Vs Natural Vs Moral Obligations

  Civil Obligation this is an obligation which if not fulfilled when it becomes due and demandable,
may be enforced in court through action.
 Natural Obligation - this is a special kind of obligation which cannot be enforced in court but
which authorizes the retention of the voluntary payment or performance by the debtor.
 Moral Obligation - this is an obligation which arises not from positive law but from the moral
law developed by the church and not enforceable in court.

Example of Civil Obligation

 Jose executed a promissory note in favor of "Pedro after the latter had given a loan of money to
the former. The note had become due and demandable. "Pedro can go to court for the
collection of the amount as the obligation being a civil obligation is enforceable in court.

General Provisions on Obligations

Requisites of an Obligation

 Active subject (creditor or obligee) – The person who has the right to demand the performance
of the obligation.
 Passive subject (debtor or obligor) – The person who is bound to person the obligation.
 Object or prestation (subject matter of the obligation) - It may consist of giving doing or not
doing.
 Juridical or legal tie (efficient cause)-binds or connects the parties to the obligation.

Obligations,Right and Cause Of Action (Wrong)

 Obligation - juridical necessity to give, to do or not to do (civil obligation)

 Right - power which a person has under the law, to demand from another any prestation
 Cause of action - act or omission which violates a right

Injury, Damage, and Damages

 Injury - act or omission which causes harm

 Damage - the harm done to a party
 Damages - sum of money recoverable by reason of damage done

Sources of Obligation
1. Law - Obligations derive from law are not presumed. Only those expressly determined in the
Civil Code or in special laws are demandable, and shall be regulated by the precepts of the law
which establishes them: and as to what has not been foreseen, by the provisions on obligations.
(Art. 1158).

Examples of Obligations Arising From Law

1. Duty of the spouses to render mutual support and respect to one another (Art. 68. Family

2. Duty of taxpayers to pay their taxes in the government (Internal Revenue Code) 3. Minimum
wage and 13 month pay law.

2. Contracts - is a meeting of minds between two persons whereby one binds himself, with respect
to the other, to give something or to render some service(Art. 1305). Obligations arising from
contracts have the force of law between the contracting parties and should be complied with in
good faith. (Art. 1159, NCC)

Example of Obligation Arising From Contract

If S agrees to sell his house to B and B agrees to buy the house of S, voluntarily and willingly,
then they are bound by the terms of their contract and neither party may, upon his own will,
and without any justifiable reason, withdraw from the contract or escape his obligations
thereunder.

3. Quasi contracts (obligations ex quasi contractu) - is that juridical relations resulting from lawful,
voluntary and unilateral acts, by virtue of which the parties become bound to each other, based
on the principle that no one shall be unjustly enriched or benefited at the expense of another

Kinds of Quasi-Contracts

 Negotiorum gestio - This refers to the voluntary administration of the property, business or
affairs of another without his consent or authority. It creates the obligation to reimburse
the gestor for necessary and useful expenses.
Example:
X went to Baguio with his family without leaving somebody to look after his house in
Manila While in Baguio a big fire broke out near the house of X Through the effort of Y a
neighbor, the house of X was saved from being burned. Y however, incurred expenses in this
case, X has the obligation to reimburse Y for said expenses although he did not actually give his
consent to the act of Y in saving his house, on the principle of quasi contract.

 Solutio Indebiti - This is a juridical relation which arises when something is received when
there is no right to demand it and it was unduly delivered through mistake, the obligation
to return it arises
Example:
This is a juridical relation which arises when something is received when there is no right
to demand it and it was unduly delivered through mistake, the obligation to return it arises.
4. Quasi delicts of Torts or culpa aquiliana (obligation ex quasi-delicto or ex quasi-maleficio) Art.
2176 - Whoever by act or omission causes damage to another, there being fault or negligence, is
obliged to pay for the damage done. Such fault or negligence, if there is no preexisting
contractual relation between the parties is called a quasi-delict.

Example:
If a person, while cleaning this window, causes a flower pot to fall through his negligence
thereby injuring someone passing by the former is liable for damages to the latter.

Quasi-Delicts Requisites:

 There must be fault or negligence

 There must be damage or injury 3. There must be a direct relation of cause and effect
between the fault or negligence on the one hand and the damage or injury on the other
 There is no pre-existing contractual relation

5. Acts of punished by law - these are crime or felonies. The commission of a crime makes the
offender civilly liable (Art. 100 Revised Penal Code) Such as civil liability includes restitution,
reparation of the damage caused and indemnification of consequential damages (Art. 104,
Revised Penal code)

Example

ID steals the carabao of CD's civil liability consists of returning the carabao paying for its
value the cannot return and indemnifying the consequential damages suffered not only by C but
also those of his family or by a third person by reason of the crime. This will be in addition to any
prison term or other penalty that may be imposed upon him by the court.

Unjust Enrichment

There is unjust enrichment when a person unjustly retains a benefit to the loss of
another, or when a person retains money or property of another against the fundamental
principles of justice, equity and good conscience.

Nature and Effect of an Obligation

Examples of Determinate Thing

1 Ford Expedition Max with engine no. 1234 body no. 5678, and plate no ABC891011.

2. My house located at 123 kaligayahan Street, Kaunlaran City.

3. The watch I am wearing.

4. This pen.

5. I promise to deliver my only car.

Examples of Indeterminate Thing

1. A car 5. A 2000 Ford car

2. A Tissot watch 6. A cavan of rice

3. A dog 7. A promise to deliver a car

4. The sum of P10, 000.00

Duties of the Debtor to Give a Determinate Thing

1 Deliver the thing

2. To take care of the thing with the diligence of a good father of a family

3. Deliver the fruits of the thing

4. Deliver the accessions and accessories

5. Answer for damages in case of breach of the obligation

Duties of the Debtor to Deliver A Determinate Thing

1. To deliver the thing

2. To take care of the thing

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 a family, unless the law or the stipulation of the parties requires another
standard of care.

Diligence Needed

 Diligence of a good father of a family – The phrase has been equated with ordinary care or that
diligence which an average (a reasonably prudent) person exercises over his own property.
 Another standard of care - extraordinary diligence provided in the stipulations of parties, or as
required by law.
To Take Care of the Thing

REASON: The debtor must exercise diligence to insure that the thing to be delivered would subsist in the
same condition as it was when the obligation was contracted without the accessory duty to take care of
the thing the debtor would be able to afford being negligent and he would not be liable even if the
property is destroyed, thus rendering illusory the obligation.

Duties of the Debtor to Deliver a Determinate Thing

3. To deliver the fruits of the thing

Kinds of fruits

a) Natural fruits are the spontaneous products of the soil, and the young and other products of
animals.

b) Industrial fruits are those produced by land of any kind through cultivation of labor.

c) Civil fruits are those delivered by virtue of a juridical relation.

ART. 1164. The creditor has a right to the fruits of the thing from the time the obligation to deliver it
arises. However, he shall acquire no real right over it until the same has been delivered to him.

Personal Right Vs Real Right

 Personal right - This is a right that may be enforced by one person on another, such as the right of
the creditor to demand the delivery of the thing and its fruits from the debtor. This is also called jus
in personam or jus ad rem.
 Real right - This refers to the right or power over a specific thing, such as possession or ownership,
which is a richt enforceable against the whole world. This is the right acquired by the creditor over
the thing and its fruits when they have been delivered to him This is also called jus in re.

Example:

Jose is obliged to give to Pedro on September 15, 2020 a particular cow. Before September 15,
2020, Pedro has no right over the cow Pedro will acquire a personal right against Jose to fulfill his
obligation only from September 15, 2020. If the cow is delivered on September 30, 2020, Pedro acquires
ownership or real right only from that date.

Duties of the Debtor to Deliver a Determinate Thing

4. To deliver the accessions and accessories

ART. 1166. The obligation to give a determinate thing includes that of delivering all its accessions and
accessories, even though they may not have been mentioned
 Meaning of Accessions and Accessories

NOTE: The obligation to give a determinate thing includes that of delivering all its accessions and
accessories. However, the parties may stipulate the certain accessions and accessories which shall be
excluded as they have freedom to stipulate.

Duties of the Debtor to Deliver a Determinate Thing

5. Answer for damages in case of breach of the obligation. At 1170, NCC)

Duties of the Debtor to Deliver a Generic Thing

1. To deliver a thing which is of the quality intended by the parties taking into account the purpose of
the obligation and other circumstances

2. To be liable for damages in case of fraud, negligence, or delay, in the performance of his obligation, or
contravention of the tenor thereof.

Remedies of the Creditor

Remedies of the Creditor

1. If the debtor fails to perform his obligation to deliver a determinate thing,

 To compel the debtor to make the delivery
 To demand damages from the debtor
Example of Remedy No. 1

D is obliged to give a specific car. On due date demands delivery but does not deliver in this
case, C can compel D to deliver the car because there is no other person in possession or control of it
can also demand payment of damages.

2. If the debtors fails to perform his obligation to deliver a generic thing.

3. If the debtor fails to perform his obligation in obligation to do.

a) If the debtor fails to perform the obligation of performs it but contravene the tenor thereof

 Creditor may have the obligation executed at the expense of the debtor
 He may also demand damages from the debtor

Example of Remedy No. 3-A

D is obliged to construct a hollow block fence for C by agreement the fence will be 2
meters high and 10 meters long fine-finished and painted D does not perform his obligation
upon Cs demand. C can ask another person to or he himself may, construct the fence at the
expense of DC can also ask for damages from DC because compulsion will violate D's night
against involuntary servitude. If construct the fence but did not follow the measurements
agreed upon file, there was contravention of the tenor of the obligation), will have the same
rights.

b) If the debtor performs the obligation but does it poorly

 Creditor may have the same be undone at the debtor's expense
 Creditor may also demand damages from the debtor.

Example of Remedy No. 3-8

If in the same illustration above (3a), D constructs the fence following the
measurements but it was not properly aligned, the finishing was rough and the fence be
demolished by another person or even by himself at D's expense C can also demand damages
from D.

4. If the debtor does what has been forbidden.

 The creditor may demand what has been done be undone.

Example of Remedy No. 4

Grounds for Liability to Pay Damages

1. Fraud

2. Negligence

3. Delay

4. Contravention of the tenor of the obligation

Damages

Damages signify the money compensation awarded to a party for loss or injury resulting from
breach of contract or obligation by the other. As a rule, the purpose of awarding damages is to place the
innocent party in the same (not better) position he would have occupied if the contract or obligation
had been performed according to its terms.

Grounds for Liability to Pay Damages

1. Fraud (deceit or dolo) - deliberate de intentional evasion of the fulfilment of an obligation.

Art. 1170 - refers to incidental fraud (dolo incidente committed in the performance of an obligation. It is
to be differentiated from causal fraud (dolo cause ) o fraud employed in the execution of the contract
which vitiates consent.

Example
 Jose entered into a contract with Pedro for the delivery of 500 bottles of pure rice wine.
They signed an agreement to this effect and the agreement contains all the essential requisites
of a valid contract. However, Jose delivered the rice wine polluted with tap water Here, as the
contract is valid, the remedy of Pedro to claim for damages and not for annulment of the
contract

2. Negligence or culpa - consists in the omission of that diligence which is required by the nature of the
option and corresponds with the circumstances of the persons of the time and place. Negligence
connotes the absence of intent to cause injury unlike fraud which is intentions in character.

Example:

a) Driving on a barangay road in a well populated place at an unjustified rate of speed causing an
accident which resulted in injuries to persons in this case, there is negligence which would make
the owner liable for damages.

b) Driving at nighttime without bean lights will be considered recent considering the circumstances
of nighttime require such light.

3. Delay (default of mora) - signifies the non fulfilment of the obligation with respect to time.

Requisites of Delay or Default

1. The obligation is already demandable

2. The debtor fails to perform his obligation

3. The creditor demands the fulfillment of the obligation either judicially or extrajudicially

4. The obligor fails to comply with such demand

Ordinary Delay and Legal Delay Distinguished

 Ordinary delay - is merely the failure to perform an obligation on time.

 Legal delay or default of mora - is the failure to perform an obligation on time which failure
constitutes a breach of the obligation

The delay contemplated in Art. 1169 is legal delay or default or mora.

GENERAL RULE: The debtor incurs in delay from the time the creditor demands fulfillment of the
obligation either judicially or extrajudicially but the debtor fails to comply with such demand no demand
no delay as a general rule.

Kinds Of Delay Or Default

1. Mora solvendi or delay on the part of the debtor to perform his obligation to give or to do.

2. Mora accipiendi or delay on the part of the creditor to accept the performance of the obligation

3. Compensatio more or the delay of the obligors in reciprocal obligations (like in sale), ie the delay of
the obligors cancels the delay of the obligee and vice versa.

Exceptions:

Delay will exist even without demand in the followings:

1 When the obligations provides

2. When the low so provides

3. When times of the essence

4. When demand would be useless

5. When there is performance by a party in reciprocal obligations

(1) When the obligation so provides

When the parties in a contract agreed that the performance shall be done on a certain specific date and
that no demand is needed.

Example:

Jose obliged to pay Mario the sum of without need of any demand. Therefore, Jose fails to pay on
November 30, 2020; he is automatically in default.

(2) When the law so provides

Example:

Under the law, taxes should be paid on or before a specified date; otherwise, penalties and surcharges
are imposed without need of demand for payment by the government.

(3) When time is of the essence

Example:

When the obligation is to construct a State-Of-The-Art Conference Center to be used as the site of an
impending International Conference set on a specific date. The contractor is liable if it fails to perform
the said obligation notwithstanding the absence of a demand since time was the controlling motive for
the establishment of the contract.
(4) When demand would be useless

Example:

When the obligor had rendered the prestation impossible of fulfillment as when the thing has been
destroyed through his fault.

(5) When there is performance by a party in reciprocal obligation In case of reciprocal obligations,
neither party incurs in delay if the other does not comply or is not ready to comply in a proper manner
with what is incumbent upon him. From the moment one of the parties fulfills his obligation, delay by
the other begins.