This document discusses two exceptions to the rule that incomplete fulfillment of an obligation does not discharge the obligation. Article 1234 allows for partial recovery if there is substantial performance in good faith, less any damages to the obligee. Article 1235 allows for full recovery if the obligee accepts incomplete or irregular performance without objection, knowing of the issues. Both articles aim to balance fairness to both parties in cases of non-strict fulfillment.
This document discusses two exceptions to the rule that incomplete fulfillment of an obligation does not discharge the obligation. Article 1234 allows for partial recovery if there is substantial performance in good faith, less any damages to the obligee. Article 1235 allows for full recovery if the obligee accepts incomplete or irregular performance without objection, knowing of the issues. Both articles aim to balance fairness to both parties in cases of non-strict fulfillment.
This document discusses two exceptions to the rule that incomplete fulfillment of an obligation does not discharge the obligation. Article 1234 allows for partial recovery if there is substantial performance in good faith, less any damages to the obligee. Article 1235 allows for full recovery if the obligee accepts incomplete or irregular performance without objection, knowing of the issues. Both articles aim to balance fairness to both parties in cases of non-strict fulfillment.
1. S obliged himself to deliver 100 sacks of rice to B. S
delivered only 90 sacks. Under the law, there is no payment by S, and B can refuse to pay for the 90 sacks if S does not deliver what is lacking.
2. D promised to pay C P1,000. D is giving only P900. C
can refuse to accept P900 because the fulfillment is not complete. Examples: 3. X agreed to paint the house of Y for P20,000. X did not paint the kitchen anymore and instead asked Y to pay him P20,000 less the cost of painting the kitchen. Y can refuse to pay X because the debt of Y (to deliver money) will arise only after the debt of X (to paint the house) is completely rendered. ART. 1234. If the obligation has been substantially performed in good faith, the obligor may recover as though there had been a strict and complete fulfillment, less damages suffered by the obligee. (Art. 1234, NCC) Recovery allowance in case of substantial performance in good faith Article 1234 is the first exception to the rule laid down in Article 1233. The reason for the exception given by the Code Commission is as follows: “The above rule (ART. 1234) is adopted from American Law. Its fairness is evident. In case of substantial performance, the obligee is benefited. So the obligor should be allowed to recover as if there had been a strict and complete fulfillment less damages suffered by the obligee. This last condition affords a just compensation for the relative breach committed by the obligor.” Requisites for the application of Article 1234
1. There must be substantial
performance; and
2. The obligor must be in good
faith. Example: S obliged himself to deliver 500 bags of cement to B. However, despite diligent efforts on his part, S was able to deliver only 400 bags because of cement shortage. Take note that S wants to comply with his obligation to deliver the entire 500 bags but he could not do so for reasons beyond his control. Under Article 1234, S can recover as though there had been complete delivery less the price of the 100 bags. S must show, however, that he attempted in good faith to com ART. 1235. When the obligee accepts the performance, knowing its incompleteness or irregularity, and without expressing any protest or objection, the obligation is deemed fully complied with. (Art. 1235, NCC) Recovery allowed when incomplete or irregular performance is waived The above provision is the other exception to Article 1233. It is founded on the principle of estoppel. If the payment is incomplete or irregular, the creditor may properly reject it. In case of acceptance, the law considers that he waives his right. The whole obligation is extinguished. Requisites for the application of Article 1235 1.The obligee knows that the performance is incomplete or irregular; and
2.He accepts the
performance without expressing any protest or objection. Example: X agreed to paint the house of Y. According to their stipulation, X would use a particular brand of paint. If Y accepted the performance of X, knowing that the paint used was another brand and without expressing any protest or objection, the obligation is deemed fully complied with. Unlike in Article 1234, where there is substantial performance, X is not liable for damages that may be suffered by Y. The reason is that the performance is