Article 1156 - Overview of Obligations

1. What are Obligations?

- It is a juridical necessity (basically the rights, duties and the responsibilities
arising from an obligation can be legally enforced) to give, to do, or not to do.
- Examples of Civil Obligations
1. Obligation to pay your tuition fee at school (to give)
2. Obligation of a parent to take care of children (to do)
3. Obligation of anyone not to steal. (not to do)

2. Why is civil obligation a juridical necessity?

- In case of non-compliance, the courts of justice may be called upon to enforce its
fulfillment or, in default thereof, the economic value that it represents.
- If one doesn’t fulfill its obligation, they can be sued and trialed by the courts of
justice.
- Examples of not juridical necessities (thus not considered to be civil obligations)
1. Your obligation to attend masses (moral obligation).
2. To pay back your debt of gratitude or utang na loob (natural obligation).

3. Essential Requisites
- Parts of an obligation in a sense, so if one of it is not part of the obligation, then it
won’t be considered as such.
- Unilateral Obligation: one party has an obligation to the other party.
- Bilateral Obligation: two parties have obligations to each other.
- Note: Obligor and Obligee are the people who take part in the obligation, not the
subject of what the Obligor must fulfill for Obligee.
1. Passive Subject (Obligor/Debtor) - person who is bound to fulfill the
obligation
2. Active Subject (Obligee/Creditor) - person who is entitled to demand the
obligation to be fulfilled.
3. Prestation/Object/Subject Matter - conduct or action required to be
observed by the debtor which are the to give, to do, and not to do.
4. Juridical Tie/Vinculum/Vinculum juris - the binds or the connection of the
parties to the obligations
- Example of what Essential Requisites look like:
Satoru Gojo is obliged to pay his income taxes.
1. Passive Subject/Obligor - Satoru Gojo
2. Active Subject/Obligee - the government (due to taxes falling under the
control of the government)
3. Prestation/Object/Subject Matter - to give money (to pay said taxes)
4. Juridical Tie/Vinculum/Vinculum Juris - the Law (falling under the Tax
Code)

3.1 Essential Requisites Examples

 Contract of Sale
Hanezuka sold a sword to Tanjiro for P2,000.

Obligations 1 (POV of Seller) Obligations 2 (POV of Buyer)

Passive Subject Hanezuka Tanjiro

Active Subject Tanjiro Hanezuka

Prestation Deliver the sword Pay P2,000

Juridical Tie Contract

4. Obligations, Right, Cause of Action (Wrong)

- Obligation - juridical; necessity to give, to do or not to do
- Right - if there is an obligation, there’s always a corresponding right. It is a power
which a person has under the law, to demand from another any prestation.
- Cause of Action - act or omission which violates a right.

5. Injury, Damage, and Damages

- Injury - act or omission which causes harm
- Damage - the harm done to a party
- Damages - sum of money or compensation to make up for the damage caused
by the obligor to the obligee.
Types of Damages that can be granted by the Court:
a. Moral Damages
- Physical, mental and social suffering
b. Exemplary Damages
- Correction for public good
c. Nominal Damages
- Damages in a violation of rights
d. Temperate Damages
- Nominal Damages < Temperate Damages < Actual
Damages
e. Actual Damage
- Actual loss suffered and profits not realized.
f. Liquidated Damage
- Damages agreed in case of breach of contract.
- Example:
Diluc sold a bottle of wine to Venti for P1,000

Obligations Rights
 Diluc Has delivered the bottle of wine to Venti Demand collection of P1,000

Venti Has not paid P1,000 to Diluc Demand delivery of bottle of wine

If Diluc has completed his end of the deal and Venti does not pay Diluc the P1,000, then
Diluc will have a right of action as Venti has violated Diluc’s rights.

Diluc - Plaintiff
Venti - Defendant

- Cause of Action - omission on part of Venti (not paying for the bottle of wine)
- Damage - a decrease of profit or incurred loss on the sale from Diluc’s side.
- Damages - sum of money recoverable (P1,000+ [this depends on whether or not Diluc
demands for extra charges or fees])

Note: Cause of Action is the action that has violated the rights while Rights of Action is basically
the counterattack of Cause of Action.

Note: Plaintiff is the person who files a case against the person in a court of law who has a
cause of action while Defendant is the person who committed the violation who has to defend
his/her side against the case.

6. Types of Obligations according to the Prestation

- Real Obligation: to give
- Personal Obligation:
1. Positive Personal - to do
2. Negative Personal - not to do

Article 1157 - Sources of Obligations

● Law
● Contracts
● Quasi-contracts
● Acts or omission punished by law
● Quasi-delicts

Note: Quasi-contracts, acts or omissions punished by law and quasi-delicts are also considered
as sources of law. So by technicality, there’s only two main sources, Law and Contracts.

1. Obligations arising from Law

- When imposed by the law itself.
- Basically, you have to fulfill obligations because there are actual laws made for it.
- Examples:
1. Paying taxes (an obligation under the Tax Code)
 2. Fulfilling the responsibilities as parents to the family (an obligation under
the Family Code)

2. Obligations arising from Contracts

- A contract is a meeting of minds between two persons whereby one binds
him/herself, with respect to the other, to give something or to render some
service.
- A contract isn’t necessarily in writing for it is only one form. A contract can still
exist even if there’s no written document for it, a verbal contract is an example of
a non-written contract.
- Notarization of documents will now become public.

3. Obligations arising from Quasi-contracts

- A quasi-contract is that juridical relation resulting from certain lawful, voluntary
and unilateral acts by virtue of which the parties become bound to each other to
the end that no one will be unjustly enriched or benefited at the expense of
another.
- Not really an actual contract as it is more of an “as if contract”.
- Examples:
1. You received excessive change after buying from a store, it is your
obligation to return the excessive change. (solutio indebiti)
- Once the transaction is made and completed, it’s not really your
obligation to return the excessive change as there’s no contract
made between you and the seller. However, even if there’s nothing
made between two parties, you still have the obligation to return it.
2. Another person took care of your dog while you’re away, it is your
obligation to reimburse him for the necessary expenses he incurred
(negotiorum gestio).

4. Obligations arising from Delicts (Acts or Omissions punished by Law)

- Also known as crime or felony
- Unlike other sources of obligations, delicts produce both criminal and civil
liabilities.
- Criminal liabilities are technically under the penal code instead of civil code but
they are also civilly liable.
- Examples:
1. Estafa
2. Murder
3. Rape

Note: Doing these crimes could get you imprisoned. Additionally, a violation would be
considered as criminal liability if the act is punishable by imprisonment.
 5. Obligations arising from Quasi-delicts
- Also known as tort or culpa.
- This is an act or omission by one part which causes damage to another party
wherein there is no pre-existing contract.
- Summary: negligence of fulfilling the obligations.
- Examples:
1. Because of the organizers’ negligence, the audience was hurt during an
event.
2. Because you are not careful while running on a busy sidewalk, you
bumped into a child and the child suffered injuries.

In both cases, the tortfeasors (the ones who neglect the situation) will answer for the
medical expense of the audience (first case) and the child (second case).

Note: In short, if you’re the one at fault and it has resulted in possible injuries, you’re obliged to
help the victim/s as you’re the one who caused their injuries.

6. Scope of Civil Liabilities

- Restitution: The restitution of the thing itself must be made whenever possible,
with allowance for any deterioration or diminution of value as determined by the
court.
- Reparation for the Damage Caused: Court shall determine the amount of
damage, taking into consideration the price of the thing, whenever possible, and
its special sentimental value to the injured party, and reparation shall be made
accordingly.
- Indemnification for Consequential Damages: Shall include not only those caused
by the injured party, but also suffered by his/her family or by a third person by
reason of the crime.
- Example:

Dazai stole the vehicle of Kunikida. Dazai was sighted by the authorities and was
engaged in a car chase. After a while, Dazai was apprehended by the authorities but the vehicle
he stole from Kunikida got damaged. Furthermore, Kunikida should have presented the vehicle
in a car show the same day Dazai stole the said vehicle. As a result, Kunikida lost potential
income from the car show.

Restitution - return the vehicle (though it got damaged)

Reparation - answer for the damage caused to the vehicle
Indemnification - since Dazai’s act resulted to Kunikida’s potential loss, Dazai will now
also answer for the said loss.

Note: If the object stolen cannot be recovered nor returned fully, then the person who omitted
must pay for the fair value or the monetary value of the object as restitution.
Article No. 1158 - Obligation Arising from Law
- Obligations derived from law are not presumed. Only those expressly determined in this
Code (Civil Code) or in special laws (Law on Corporations, Regulated and Negotiable
Instruments, etc.) 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 of this
Book.
- There’s no assumption that there’s no obligation for it has to be expressed by the law.
- Examples:
1. An employer has no obligation to furnish free legal assistance to his employees
2. A private school has no legal obligation to provide clothing allowance to its
teachers.

Article No. 1159: Obligations Arising from Contracts

- Obligations arising from contracts have the force of law between the contracting parties
and should be complied with in good faith.

Article No. 1160: Obligations Arising from Quasi-contracts

- Certain lawful, voluntary, and unilateral acts give rise to the juridical relation of
quasi-contract to the end that no one shall be unjustly enriched or benefited at the
expense of another.
- Examples of Quasi-Contracts:
1. Negotiorum gestio (Art. 2144–2153) - Nominate
- This juridical relation does not arise in either of these instances:
- When the property or business is not neglected or abandoned.
- If in fact the manager has been tacitly authorized by the owners.
First Scenario - Unauthorized Contract
Second Scenario - Contract of Agency
2. Solutio Indebiti (Art. 2154-2163) - Nominate
- Basically payment by mistake (sobra or kulang na sukli).
3. Other Quasi-contracts (Art. 2164-2175)
- Innominate
- When, without the knowledge of the person obliged to give support, it is
given by a stranger, the latter shall have a right to claim the same from
the former, unless it appears that he gave it out of piety and without
intention of being repaid.
- When funeral expenses are borne by a third person, without the
knowledge of those relatives who were obliged to give support to the
deceased, said relatives shall reimburse the third person, should the latter
can claim reimbursement.
- When the person obliged to support an orphan, or an insane or other
indigent person unjustly refuses to give support to the latter, any third
person may furnish support to the needy individual, with the right of
reimbursement from the person obliged to give support. The provisions of
this article apply when the father or mother of a child under eighteen
 years of age unjustly refuses to support him/her. In short, either the
parents are dead and someone took them in that aren’t his/her relatives
or the parents are alive but a 3rd person took care of the kid and no child
support was given.
- When through an accident or other cause a person is injured or becomes
seriously ill, and he is treated or helped while is not in a condition to give
consent to a contract, he shall be liable to pay for the services of the
physician or other person aiding him, unless the service has been
rendered out of pure generosity.

Article No. 1161: Obligations Arising from Delicts

- Civil obligations arising from criminal offenses shall be governed by the penal laws,
subject to the provisions of Article 2177, and of the pertinent provisions of Chapter 2,
Preliminary Title, on Human Relations, and of Title XVIII of this Book (The Law on
Obligations and Contracts), regulating damages.
- Delicts = Crimes or the Acts and Omissions punishable by Law

Note: Concubinage - Husband who committed the affair and Adultery - Wife who committed the
affair.

Article No. 1162: Obligations arising from Quasi-delicts

- 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
pre-existing contractual relation between the parties, is called a quasi-delict and is
governed by the provisions of this Chapter.
- The obligation imposed by Article 2176 is demandable not only for one’s own acts or
omissions, but also for those of persons for whom one is responsible.
- May kapapabayaan o hindi niya sinasadya = quasi-delict
- Examples:
The father and, in case of his death or incapacity, the mother, are responsible for
the damages caused by the minor children who live in their company.

Article No. 1163 - Obligations of the Debtor

1. Types of Obligations according to its Prestation
- Real Obligations
1. To give specific thing: 1) Particularly designated, or 2) Physically
segregated.
2. To give generic thing: Remember that money is a generic object no matter
if there’s a designated amount.
Example of to Give Specific Thing:
a. Nick bound himself to deliver you his only dog tomorrow.
b. Dazai obliged himself to give Chuuya as a birthday gift his Cheval Blanc
1947.
Example of to Give Generic Thing:
 a. Gary bound himself to give Ricardo P10,000 tomorrow.
b. Blake obliged himself to deliver a pig on John;s birthday.

- Personal Obligations
1. Positive Personal Obligations (To Do)
a. Gojo bound himself to save Megumi before the end of the last arc.
b. Hua Cheng obliged himself to create the best weaponry for Xie
Lian before he comes back from the Heavens.
2. Negative Personal Obligations (Not to Do)
a. Kars and Wamuu agreed not to build any structures on their
boundaries.

2. Obligations of the Debtor

- Obligations in obligation to deliver a specific thing:
a. To deliver the thing
b. To take care of the thing before delivery (Art. 1163)
c. To deliver the fruits of the thing (Art. 1164)
d. To deliver accessions and accessories although they were not mentioned
(Art. 1166)
e. To pay damages if guilty of fraud, negligence, delay or contravention of
the terms of the obligation. (Art. 1170)

- Obligations in obligation to deliver a generic thing:

a. To deliver the thing
b. To bear the expenses of having someone else comply with the obligation
(Art. 1165 par.2)
c. To pay damages if guilty of fraud, negligence, delay or contravention of
the terms of the obligation. (Art. 1170)

- Obligations in obligation to do:

a. To do the obligation
b. To bear the expenses of having someone else comply with the obligation.
(Art. 1167 par.1)
c. To undo what has been poorly done (Art.1167 par.2)
d. To bear the expenses of having someone else undo what has been poorly
done (Art. 1167 par. 2)
e. To pay damages if guilty of fraud, negligence, delay and contravention of
the terms of the obligation (Art. 1170).

- Obligations in obligation to not to do

a. Not to do what has been forbidden
b. To undo what has been done that is forbidden. (Art. 1168)
c. To bear the expenses of having someone else undo what has been done
that is forbidden. (Art. 1168)
 d. To pay damages if guilty of fraud, negligence, delay or contravention of
the terms of the obligation. (Art. 1170)

Article No. 1164 - Rights of Creditors to the Fruits of the Thing

- Determinate things are those who cannot be replaced or substituted with another same
kind and quality without the passive subject (obligor) seeking consent from the active
subject (obligee). This most likely means that the things contain value, be it sentimental
or not, to the obligee.
- Indeterminate things are the opposite of Determinate things where those who have a
lack of identifying limits.

Obligations of the Debtor Rights of the Creditor

● Obligation to give a specific ● Principal Rights

thing

● Obligation to give a generic ● Subsidiary Rights

thing

● Obligation to do

● Obligation to give a generic

thing

Note: Don’t confuse the Rights of the Creditor with Rights of Creditors over a Thing which
includes Real Rights and Personal Rights.

Enforceable When Acquired? Example Civil Code Provision

Against whom?

Personal A specific From the time On Jan. 1, 2020, Art. 1164. The
passive subject obligation to X bound himself creditor has a right to
deliver arises to give Y his only the fruits of the thing
(which is upon dog. This is to be from the time the
Jan. 10, 2020) delivered on Jan. obligation to deliver it
10, 2020 arises. However, he
Real Anyone Delivery shall acquire no real
(Once the right over it until the
person has same has been
received the delivered to him.
dog)

In short:
Personal Right: May utang sa’yo si beshie so may right ka over kay beshie kasi nag-utang siya
sayo and manunullify lang yan if nagbayad na si bes.

Real Right: Ownerships are one of the examples where Real Rights can be applicable.

1. Personal and Real Rights

● Personal Rights
- The right or power of a person (creditor) to demand from another person
(debtor), as a definite passive subject, the fulfillment of the latter’s
obligation to give, to do or not to do.

● Real Rights
- The right or interest of a person over a specific thing (like ownership,
possession, mortgage), without a definite passive subject against whom
the right may be personally enforced.

2. Difference between Personal Rights and Real Rights

- In personal right, there is a definite active subject and a definite passive subject
while in real right, there is only a definite active subject without any definite
passive subject.
- A personal right is, therefore, binding or enforceable only against a particular
person, while a real right is directed against the whole world.

Example:
Marley is the owner of a parcel of land under a torrens title registered in his name in the
Registry of Property. His ownership is a real right directed against everybody. There is no
definite passive subject.

If the land is claimed by Reiss who takes possession, Marley has a personal right to
recover from Reiss, as a definite passive subject, the property.

If the same land is mortgaged by Marley to Jaeger, the mortgage, if duly registered, is
binding against third persons. A real purchaser buys the land subject to mortgage which is a
real right.

Extra:
Principal Rights
a. Ask Specific Performance - Obligation to give specific thing
b. Ask Performance - Obligation to give generic thing and obligation to do.
c. Ask Substituted Performance - Obligation to give generic thing and obligation to do.
d. Ask Damages - All obligations
e. Rescission - Specific Scenarios only
f. Attachment and Execution of Debtor’s Properties - Usually the last remedy if ever the
creditors aren’t satisfied with the letters A-E.
Subsidiary Rights
a. Accion Subrogatoria - exercise all the rights of the debtor.
b. Accion Pauliana - to impugn contracts that were entered to defraud the creditor.

Example:
X borrowed from Y P1,000,000 pesos. On the due date, X failed to pay despite
the demands of Y. Y also exhausted all his principal rights. Supposed X has a receivable
from Z amounting to P500,000 and another receivable from W amounting to P500,000.

Note: Subsidiary Rights can’t be exercised unless you have already exercised the Principal
Rights/Remedies first.

3. Ownership acquired by Delivery

- Ownership and other real rights over property are acquired and transmitted in
consequence of certain contracts by tradition (Art.712) or delivery.
- Basically, ownership will be transferred to the buyer once he/she has received
the parcel. If it has not been delivered yet, then the ownership is still with the
seller.

Article No. 1165 - Determinate and Indeterminate Thing, and Delays

1. Remedies of creditor in Real Obligation
- In specific real obligation (or the obligation to deliver a determinate thing), the
creditor may exercise the following remedies in case the debtor fails to comply
with his obligation:
a. Demand for Specific Performance of the obligation with a right to
indemnity for damages.
b. Demand Damages/Monetary Compensation only where it is the only
feasible remedy.
c. Demand Rescission or Cancellation (in certain cases) of the obligation
also with a right to recover damages.

Note: In an obligation to deliver a determinate thing, the very thing itself must be delivered (Art.
1244). Consequently, only the debtor can comply with the obligation.

- A generic real obligation (or the obligation to deliver a generic thing), on the other
hand, can be performed by a third party/person since the object is expressed
only according to its family or genus. It is, thus, not necessary for the creditor to
compel the debtor to make the delivery, although he/she may ask for
performance of the obligation. In any case, the creditor has the right to recover
damages under Article 1170 in case of breach or violation of the obligation.

Example:
 Kenji obliges himself to deliver to Lucy 100 sacks of rice on December 4
for P50,000.

If Kenji does not comply with his obligation, then Lucy can look for
another seller (in this instance, it would be Fritz) who’s a third person in the
transaction. If Lucy paid Fritz P55,000, she may recover (assuming that she has
not paid Kenji yet) P5,000 more from Kenji. Furthermore, Lucy can also hold
Kenji liable for damages in view of Article 1170 as in the case of the deliver of a
determinate thing (par. 1).

2. Where debtor delays or has promise delivery to separate creditors

- An indeterminate thing cannot be the object of destruction by a fortuitous event
because genus nunquam perit (genus never perishes).
- Genus nunquam perit is a legal principle that applies to obligations involving
generic things rather than specific things. This implies that destruction of generic
things by a fortuitous event does not discharge the obligation.

Article No. 1166 - Accessions and Accessories

1. Meaning of Accessories and Accessions
- Accessions are the fruits of a thing or additions to or improvements upon a thing
(the principal). Basically any results or add-ons in short.
Example:
House or trees on a land; rents of a building; air-conditioner in a car;
profits or dividends accruing from shares of stocks, etc.

- Accessories are things joined to or included with the principal thing for the
latter’s.
Example:
Key of a house; frame of a picture; bracelet of a watch; machinery in a
factory; bow of a violin.

Note: While accessions are not necessary to the principal thing, the accessory and the principal
must go together. Both can exist only in relation to the principal. Accession is also used in the
sense of a right, i.e.m right to the fruits and/or accessories of a thing.

2. Right of creditor to accessories and accessions

- All accessions and accessories are considered included in the obligation to
deliver a determinate thing although they may not have been mentioned.
- This rule is based on the principle of law that the accessory follows the principal
thing.
- In order that they will be excluded, there must be a stipulation to that effect.
- Unless otherwise stipulated, an obligation to deliver accessions or accessories of
a thing does not include the latter.
Article No. 1167 - Remedies of Creditor in Positive Personal and Performance by a
Third Person
1. Situations contemplated in Article 1167
- The debtor fails to perform an obligation to do.
- The debtor performs an obligation to do but contrary to the terms thereof.
- The debtor performs an obligation to do but in poor manner.
2. Remedies of Creditor in Positive Personal
- If the debtor fails to comply his obligation to do, the creditor has the rights:
1. To have the obligation performed by himself, or by another, unless
personal considerations, are involved, at the debtor’s expense.
2. To recover damages. (Art. 1170)
- In case the obligation is done in contravention of the terms of the same or is
poorly done, it may be ordered (by the court upon complaint) that it be undone if
it is still possible to undo what was done.
3. Performance by a Third Person
- A personal obligation to do, like a real obligation to deliver a generic thing, can be
performed by a third person.
- While the debtor can be compelled to make the delivery of a specific thing (Art.
1165), a specific performance cannot be ordered in a personal obligation to do
because this may amount to involuntary servitude which is prohibited under the
Constitution.

Article No. 1168 - Remedies of Creditor in Negative Personal

- As a rule, the remedy of the obligee is the undoing of the forbidden thing plus damages.
- However, if it is not possible to undo what was done, either physically or legal, or
because of the rights acquired by third persons who acted in good faith, or for some
other reason, his remedy is an action for damages caused by the debtor’s violation of his
obligation.

Article No. 1169 - Delays

- Delay, as used in the law, is not to be understood according to its meaning in common
parlance. A distraction, therefore, should be made between ordinary delay and legal
delay (default or mora) in the performance of an obligation.
a. Ordinary delay is merely the failure to perform an obligation on time.
b. Legal delay or default or mora is the failure to perform an obligation on time
which constitutes a breach of the obligation.

1. Kinds of delay or default

a. Mora Solvendi - delay of debtor
b. Mora Accipiendi - delay of creditor
c. Compensatio Morae - delay of both creditor and debtor (no delay)
 2. No delay in negative personal obligation
- In an obligation not to do, non-fulfillment may take place but delay is impossible
for the debtor to fulfill by not doing what has been forbidden to him.

3. Requisites of delay or default by the debtor

- There are three conditions that must be present before Mora Solvendi can exist
or its effects may arise:
a. Failure of the debtor to perform his (positive) obligation on the date
agreed upon.
b. Demand (not mere reminder or notice) made by the creditor upon the
debtor to comply with his obligation which demand may be either judicial
(when a complaint is filed in court) or extrajudicial (when made outside of
court, orally or in writing).
c. Failure of the debtor to comply with such demand.
- The creditor has the burden of proving that the demand has been made.
Similarly, it is incumbent upon the debtor to prove that the delay was not caused
by his/her fault to relieve him/herself from liability.

4. Effects of delay
- Mora Solvendi: the following are the effects:
a. The debtor is guilty of breach or violation of the obligation.
b. He/she is liable to the creditor for interest (in case of obligations to pay
money) or damages (in other obligations). In the absence of extrajudicial
demand, the interest shall commence from the filing of the complaint.
c. He/she is liable even for a fortuitous even when the obligation is to deliver
a determinate thing. However if the debtor has proven that the results
would still be the same even without the delay then the court may
equitably mitigate or reduce the damages.

Note In obligation to deliver a generic thing, the debtor is not relieved from liability for loss due
to a fortuitous event. He/she can still be compelled to deliver a thing of the same kind or held
liable for damages.

- Mora Accipiendi: the effects are as follows:

a. The creditor is guilty of break of obligation.
b. He/she is liable for damages suffered, if any, by the debtor.
c. He/she bears the risk of loss of the thing due.
d. Where the obligation is to pay money, the debtor is not liable for interest
from the time of creditor’s delay.
e. The debtor may release himself from the obligation by the consignation or
deposit in court of the thing or sum due.
 - Compensatio morae: The delay of the obligor cancels the delay of the obligee
and vice versa. Legally speaking, there is no default or delay on the part of both
parties.

Note: If the delay of one part is followed by that of the other, the liability of the first infractor shall
be equitably tempered or balanced by the courts. If it cannot be determined which of the parties
is guilty of delay, the contract shall be deemed extinguished and each shall bear his own
damages. (Art. 1192).

5. When demand is not necessary to put debtor in delay

- Delay by the debtor begins only from the moment a demand, judicial or
extrajudicial, for the fulfillment of the former’s obligation is made by the creditor.
Without such an amount, the effect of default will not arise. The exceptions are
mentioned in the following:
a. When the obligation so provides.
b. When the law so provides.
c. When time is of the essence.
d. When demand would be useless.
e. When there is performance by a party in reciprocal obligations.

Article No. 1170 - Breaches in Obligations

- Those who in the performance of their obligation are guilty of fraud, negligence, or delay,
and those who in any manner contravene the tenor thereof, are liable for damages.

Grounds for Liabilities:

1. Fraud
- Deceit or Dolo
- The deliberate or intentional evasion of the normal fulfillment of an obligation.
- As a ground for damages, it implies some kind of malice or dishonesty and it
cannot cover cases of mistake and errors of judgment made in good faith
- It is synonymous to bad faith in that, it involves a design to mislead or deceive
another.
a. Causal Fraud (dolo causante) - Fraud in obtaining consent
b. Incidental Fraud (dolo inicdente) - Fraud in the performance of the
obligation.

Example:
You obliged yourself to deliver 100kg of premium sugar. The sugar is read
but before actual delivery, you decided to mix 50kg of low quality sugar to cut
cost.

Note: There can also be incidental fraud while obtaining consent.

 2. Negligence
- It is any voluntary act or omission, there being no bad faith or malice, which
prevents the normal fulfillment of an obligation.
a. Culpa aquiliana (quasi-dilect)
- If there’s signs of negligence in a vehicular accident and the most
grievous result would be victims sustaining injuries from said
accident, you have the obligation to answer for any hospital fees
of the victims with negligence as the source of obligations as it is
derived from quasi-delict (in short, culpa aquiliana is the source).
- From what I can understand, the difference between culpa
aquiliana and culpa criminal is that culpa aquiliana stems from the
suspect being more negligent to his/her surroundings that can
cause incidental effect without breaking any laws???
b. Culpa contractual (contract)
- A school doesn’t have enough staff to maintain the facility properly
thus having a more lax security system where anyone can enter. A
stranger went inside the school and harassed some students
within said building. The school will now have the obligation to
answer the damages as their negligence of upholding the contract
between the school and students was breached due to not having
proper security system which is supposed to be their obligations
(in short, culpa contractual is the source).
- Note: It’s the breach of contract being the turning point to make
culpa contractual as the cause of the source of obligation.
c. Culpa criminal (delict)
- Going back to the vehicular accident, if the result of said accident
led to a death or two of victims, then it is now considered as culpa
criminal.
- Though not all cases with culpa criminal ends with death as it
could also only lead to injuries at most, such as reckless driving
(or reckless imprudence) resulting in physical injuries.

3. Delay
- Refer to Article No. 1169.
a. Mora Solvendi - delay of debtor
b. Mora Accipiendi - delay of creditor
c. Compensatio Morae - delay of both creditor and debtor (no delay)

Note: There’s only a delay if there’s further demand for an object or service and it hasn’t been
delivered or given in it’s agreed time.

4. Contravention of the terms of the Obligation

- This is the violation of the terms and conditions stipulated in the obligation.
 - The contravention must not be due to a fortuitous event or force majeure. (Art.
1174).

Fraud and Negligence Distinguished:

- Fraud may be distinguished from negligence as follows:
1. In fraud, there is deliberate intention to cause damage or injury, while in
negligence, there is no such intention.
2. Waiver of the liability for the future fraud is void (Art. 1171), while such waiver
may, in a certain sense, be allowed in negligence (Art. 1172).
3. Fraud must be clearly proved, while negligence is presumed from the violation of
a contractual obligation.
4. Lastly, liability for fraud cannot be mitigated or reduced by the courts, while
liability for negligence may be reduced according to the circumstances. (Art.
1173).

Article No. 1171 - Responsibilities arising from fraud demandable

1. Responsibility arising from fraud demandable
- This provision refers to incidental fraud which is employed in the fulfillment of an
obligation. (Art. 1170).
- Responsibility arising from fraud can be demanded with respect to all kinds of
obligation and unlike in the case of responsibility arising from negligence (Art.
1172), the court is not given the power to mitigate or reduce the damages to be
awarded.

2. Waiver of action for future fraud void

- According to the time of commission, fraud may be past or future.
- A waiver of an action for future fraud is void (no effect) as being against the law
and public policy. (Art, 1409).
- A contrary rule would encourage the perpetration of fraud because the obligor
knows that even if he/she should commit fraud, he would not be liable for it, thus
making the obligation illusory.

3. Waiver of action for past fraud valid

- What the law prohibits is waiver anterior to the fraud and to the knowledge
thereof by the aggrieved party.
- A past fraud can be the subject of a valid waiver because the waiver can be
considered as an act of generosity and magnanimity on the part of the party who
is the victim of the fraud.
- The waiver must be expressed in clear language which leaves no doubt (or
loopholes) as to the intention of the obligee to give up his/her right against the
obligor.