The LAW on

OBLIGATIONS and
CONTRACTS
Celez, Jenny T.
GROUNDS FOR LIABILITY
(1)Fraud
Incidental Fraud
Causal Fraud
ARTICLE
(2) Negligence
1170
(3) Delay
(4) Contravention of the terms of the
obligation
FRAUD AND NEGLIGENCE DISTINGUISH

FR AU D
• Intention
• Void NEGLIGENCE ARTICLE
1170
• Clearly Proved • Without Intention
• Can’t reduce • Sometimes allowed
• Violation
• Can reduce
RESPONSIBILITY ARISING FROM
FRAUD DEMANDABLE

Future Fraud: Past Fraud: ARTICLE

1171

VO I D !
VAL ID !
RESPONSIBILITY ARISING
FROM NEGLIGENCE ARTICLE
1172
DEMANDABLE
VALIDITY OF WAIVER OF
ACTION ARISING FROM ARTICLE
1172
NEGLIGENCE
 KINDS OF NEGLIGENCE
ACCORDING TO SOURCE OF
OBLIGATION
ARTICLE
• Contractual Negligence (Culpa 1172
Contractual)
• Civil Negligence (Culpa Aquiliana)
• Criminal Negligence (Culpa Criminal)
EFFECT OF NEGLIGENCE ON
THE PART OF THE INJURED ARTICLE
PARTY 1172
 FAULT OR NEGLIGENCE
ARTICLE
Failure to observe for the protection of 1173
the interest of another person
FACTORS TO BE CONSIDERED
• Nature of the obligation ARTICLE
• Circumstances of the person 1173
• Circumstances of time
• Circumstances of the place
MEASURE OF LIABILITY FOR ARTICLE
DAMAGES 1173
KINDS OF DILIGENCE ARTICLE
REQUIRED 1173
FORTUITOUS EVENT ARTICLE
1174
FORTUITOUS EVENT
DISTINGUISH FROM FORCE
MAJEURE ARTICLE
1174
• Act of Man
• Act of God
KINDS OF FORTUITOUS EVENT
ARTICLE
• Ordinary fortuitous event 1174
• Extra ordinary fortuitous event
REQUISITES OF A FORTUITOUS ARTICLE
EVENT 1174
 RULES AS TO LIABILITY IN ARTICLE
CASE OF FORTUITOUS EVENT 1174
SIMPLE LOAN OR MUTUMN ARTICLE
AND USURY 1175
REQUISITES FOR RECOVERY OF ARTICLE
INTEREST 1175
PRESUMPTION
ARTICLE
• Conclusive presumption 1176
• Disputable presumption
REMEDIES AVAILABLE TO
CREDITORS FOR THE ARTICLE
SATISFACTION OF THEIR 1177

CLAIMS
TRANSMISSIBILITY OF RIGHTS
• Prohibited by law
Contract of Partnership ARTICLE
Contract of Agency 1178
Contract of Commodatum
• Prohibited by stipulation of the parties