Oblicon - Week 6 To 8

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Atty. Maria Almira L.

Fandialan - Saniano
BREACH – violation of a duty or promise.

Basis: Article 1170. Those who in the


performance of their obligations are guilty
of fraud, negligence, or delay, and those
who in any manner contravene the tenor
thereof, are liable for damages.
1. Delay or Mora - The debtor can be held liable for
the delay or default in the fulfillment of his obligation
only after the creditor has made a demand, judicial or
extrajudicial, on the debtor, except: (Instances when
demand is no longer necessary)

 When the law expressly provides that demand is not


necessary;
 When the contract expressly stipulates that demand is
not necessary;
 When time is of the essence (Sale of mining property);
 When demand would be useless (Prestation is
impossible).
1. MORA SOLVENDI – delay on the part of the debtor to fulfill his
obligation.

EFFECT: debtor is liable for damages and interests.

2. MORA ACCIPIENDI – delay on the part of the creditor to accept


the performance of the obligation

EFFECT: creditor is liable for damages and bears the risk of loss of
the thing; debtor is not liable for interest from the time of creditor’s
delay and may release himself from the obligation.

3. COMPENSATIO MORAE – delay of the obligors in reciprocal


obligation.

EFFECT: the default of one compensates the default of the other;


their respective liabilities shall be offset equitable.
2. Fraud or Dolo - deliberate intentional evasion
of the faithful fulfillment of an obligation.

Types:

a. INCIDENTAL FRAUD – fraud incident to the


performance of an obligation.

b. CAUSAL FRAUD – employed in the execution of


contract in order to secure consent; remedy is
annulment of contract because of vitiation of
consent.
3. Negligence or Culpa - consists in the omission
of that diligence which is required by the nature of
the obligation and corresponds with the
circumstances of the persons, or the time and of
the place.

Types:

a. Culpa Aquiliana (Quasi-delict) - Negligence


between parties not so related by pre-existing
contract.

b. Culpa Contractual (Breach of contract) -


Negligence in the performance of contractual
obligation.
EFFECTS OF CONTRIBUTORY
NEGLIGENCE OF THE CREDITOR

GENERAL RULE: Reduces or mitigates the


damages which he can recover.

EXCEPTION: If the negligent act or omission


of the creditor is the proximate cause of the
event which led to the damage or injury
complained of, he cannot recover.
4. Contravention of the tenor -
Performance in contravention of the tenor
or terms of the obligations means where
performance is contrary to what is agreed
upon or stipulated thus making the
debtor liable for damages.

Ex: A bought a business class ticket


from ABC Airline, then he was transferred
to economy class. ABC is liable for
damages.
5. Fortuitous Event - an event which could
not be foreseen, or though foreseen, was

inevitable.

Kinds:

a. Acts of God - if due to a natural


occurrence,
like an earthquake, storm, flood.

b. Acts of Man (Force Majeure) - caused by


man, like war, riot, strike.
(1) The event must be independent of the human will or
at least of the obligor’s will;

(2) The event could not be foreseen (unforeseeable), or


if it could be foreseen, must have been impossible to
avoid (unavoidable);

(3) The event must be of such a character as to render it


impossible for the obligor to comply with his
obligation in a normal manner; and

(4) The obligor must be free from any participation in, or


the aggravation of the injury to the obligee.
GENERAL RULE: No liability for fortuitous event.

EXCEPTIONS:

1. When expressly declared by law (bad faith, subject


matter is generic, debtor is in delay);

2. When expressly declared by stipulation or contract;

3. When nature of obligation requires assumption of risk;

4. When the obligor is in default or has promised to


deliver the same thing to two or more persons who do

not have the same interest.


1. Specific performance - remedy of
requiring exact performance of a contract
in the specific form in which it was made,
or according to the precise terms agreed
upon. It is the actual accomplishment of
a contract by a party bound to fulfill it.

Ex: If a defendant has breached a contract


in which he agreed to deliver a Picasso
painting to the plaintiff, the Court may
order specific performance - for
defendant to deliver to plaintiff said
painting.
2. RESCISSION - cancellation of
an agreement or contract either
through mutual agreement of the
parties or for cause. A party
can rescind a contract when the other
party fails to comply with his legal
obligation. This is done through judicial
rescission (in court).

3. DAMAGES – monetary compensation,


given to a person who has suffered a
loss or harm due to the unlawful act or
omission of another.
a. MORAL DAMAGES - Awarded only to
enable the injured party to alleviate the
mental anguish, sleepless nights,
besmirched reputation he suffered, by
reason of defendant’s culpable action.

b. ACTUAL / COMPENSATORY DAMAGES


– awarded simply to make good or replace
the loss caused by the wrong; Must be
proven by evidence.

c. EXEMPLARY / CORRECTIVE DAMAGES


- intended to serve as a deterrent to
serious wrongdoings.

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