Chapter 4, Section 2:

Loss of Things Due

Group Members : Sulmaca, Van Jay
Villapando, Christian Joseph
Campos, Christian Razel
Castor, Celine Margaret
ECE70/C11
Loss of the Thing Due

1. Perishes

2. Goes out of business

3. Disappears in such a way that its existence is

unknown or it cannot be recovered
 Effect of Loss in Determinate Obligation to
Give
Requisites:
1.The thing which is lost must be determinate

2.The thing is lost without any fault of the debtor (if with fault: the obligation is
not extinguished; it is simply converted into an obligation to reimburse the
creditor for damages.)

3.The thing is lost before the debtor has incurred in delay

GEN RULE: If the loss is due to a fortuitous event, the debtor cannot be held
liable. (obligation is extinguished)
Effect of loss in Generic Obligation to Give

The loss and destruction of anything of the same kind doesnot

extinguished the obligation

EXCEPTION: the objectis a particular class or group with

specific or determinate qualities

Example:
Cattles in a particular ranch
Effect of Partial Loss

Shall depend upon the sound discretion of the court :

1. Whether loss is significant may be enough to extinguish

obligation

2. Whether loss is insignificant , not enough to extinguish

obligation
Presumption if Thing is loss in the debtors
possession (determinate)

Disputable presumption that the

loss was due to his fault; the obligation is not
extinguished that the is still liable for damages

EXCEPTION:
Presumption does not apply in case of earthquake, flood,
storm or other natural calamity
Effect of Impossibility of Performance in
Obligation to Do and Not to Do

Impossibility must have occurred after the constitution of

the obligation

TWO CAUSES:
May arise from the law (legal impossibility)
Physical impossibility (death, disabled)

EFFECT:
without the fault of the debtor the obligation is extinguished.
Obligation Arises from Criminal Offense

GEN RULE:
When a thing certain and determinate proceeds from a criminal
offense, the debtor shall not be exempted from the payment of its
price whatever may be the cause for the loss

EXCEPTION:
the thing having been offered by him to the person who
should receive it, the latter refused without justification
PROBLEM 1

X obliges himself to deliver a specific thing to Y on a

certain date. The thing was lost by X without his fault
and before he has incurred in delay. Does its mean that X
is already exempt from liability?
 ANSWER
Art 1262. An obligation which consists in the delivery
of a determinate thing shall be extinguished if it
X is exempted from the should be lost or destroyed without the fault of the
debtor, and he has incurred in delay
liability due to article
1262. where If the loss is 1. The thing which is lost must be determinate

due to a fortuitous event, 2. The thing is lost without any fault of the debtor (if
with fault: the obligation is not extinguished; it is
the debtor cannot be simply converted into an obligation to reimburse
the creditor for damages.)
held liable. (obligation
3. The thing is lost before the debtor has incurred in
is extinguished) delay
PROBLEM 2

Suppose in problem 1 , the thing was lost through the

fault of Z, a third person. State the effect of the loss as
far as X, Y, Z are concered.
 ANSWER

This case is affected by PERSON AFFECTED EFFECT

Article. 1269 where the
obligation having been The obligation of X is
extinguished by the loss X extinguished and he is not liable
of the thing, the creditor to Y .
shall have all the rights
Y has all the right to bring action
of action which the
debtor may have against Y against Z to recover the item
with damages compensation.
third persons by reason
of the loss. Z is solely liable to Y to
Z compensate Y for the damage
that Y received .