As of my last knowledge update in January 2022, Article 1161 of the Civil Code of the Philippines is

related to the concept of "rescission" or "resolution" of contracts. Rescission is a legal remedy that
allows a party to a contract to terminate the agreement due to a breach by the other party. Please note
that legal codes can be subject to amendments, so it's always a good idea to check the most recent and
applicable legal sources for the latest information.

Here is a general explanation of the concept of rescission and Article 1161:

**Article 1161:**

"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.

However, the demand by the creditor shall not be necessary in order that delay may exist:

1. When the obligation or the law expressly so declares; or

2. When from the nature and the circumstances of the obligation it appears that the designation of the
time when the thing is to be delivered or the service is to be rendered was a controlling motive for the
establishment of the contract; or

3. When demand would be useless, as when the obligor has rendered it beyond his power to perform.

In 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."

**Explanation:**

Article 1161 primarily addresses the concept of delay or default in the performance of obligations under
a contract. It outlines the circumstances under which a party is considered to be in delay and when the
demand for performance is necessary. Key points include:
1. **Delay upon Demand:** Generally, the party obligated to deliver or perform something is considered
in delay when the obligee (the person to whom the obligation is owed) formally demands fulfillment
either through legal or extrajudicial means.

2. **Exceptions to the Demand Requirement:** There are situations where demand is not necessary for
delay to be recognized. These include cases where the obligation or the law explicitly declares that delay
occurs without demand, or when the nature of the obligation or the circumstances make demand
unnecessary or futile.

3. **Reciprocal Obligations:** In cases of reciprocal obligations (where both parties have mutual
obligations to each other), neither party is considered in delay until the other party fails to comply or is
not ready to comply in a proper manner. Once one party fulfills their obligation, delay by the other party
begins.

This article provides a framework for understanding when delay occurs in contractual relationships and
the conditions under which a demand for performance is necessary. It plays a crucial role in the
enforcement and resolution of contractual disputes.