CIVIL CODE-OBLIGATIONS (1)

Article 1167 Chapter 2 - Nature and Effect of Obligations

If a person obliged to do something fails to do it, the same shall be executed at his cost.

This same rule shall be observed if he does it in contravention of the tenor of the obligation. Furthermore, it may be decreed that what has been poorly done be undone. (1098)

Article 1168 Chapter 2 - Nature and Effect of Obligations

When the obligation consists in not doing, and the obligor does what has been forbidden him, it shall also be undone at his expense. (1099a)

Article 1169 Chapter 2 - Nature and Effect of Obligations

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.

Demand

the creditor's act of requiring the debtor to comply with the obligation. Non-compliance will cause the debtor to be delayed.

Instances where demand is not needed

(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.

Reciprocal Obligation

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

PARTIES

are creditors and debtors at the same time

OBLIGATIONS

arise from one and the same cause

PERFORMANCE OF ONE

dependent upon the performance of the obligations

THERE IS a DELAY

when one of the parties is ready to perform, but the other is not yet ready to perform

Article 1170 Chapter 2 - Nature and Effect of Obligations

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. (1101)

Dolo Incidente

Incidental Fraud

Dolo Causante

Causal Fraud

Basis for Damages

Negligence, delay, and contravention

negligence

culpa contractual

culpa aquiliana (tort)

delay

mora-begins from the time of demand for the fulfillment of obligation

contravention

Contrary to what is agreed upon

Article 1171 Chapter 2 - Nature and Effect of Obligations

Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for future fraud is void. (1102a)

Article 1172 Chapter 2 - Nature and Effect of Obligations

Responsibility arising from negligence in the performance of every kind of obligation is also demandable, but such liability may be regulated by the courts, according to the circumstances. (1103)

Article 1173 Chapter 2 - Nature and Effect of Obligations

The fault or negligence of the obligor consists in the omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the persons,of the time and of the place. When negligence shows bad faith, the provisions of Articles 1171 and 2201, paragraph 2, shall apply

Expected of a good father of a family shall be required

If the law or contract does not state the diligence which is to be observed in the performance

Article 1174 Chapter 2 - Nature and Effect of Obligations

Except in cases expressly specified by the law, or when it is otherwise declared by stipulation, or when the nature of the obligation requires the assumption of risk, no person shall be responsible for those events which could not be foreseen, or which, though foreseen, were inevitable. (1105a)

Article 1179 Section 1 - Pure and Conditional Obligations

Every obligation whose performance does not depend upon a future or uncertain event, or upon a past event unknown to the parties, is demandable at once.

Demandable

Every obligation which contains a resolutory condition shall also be __________, without prejudice to the effects of the happening of the event.

Suspensive Condition

The happening of this condition gives rise to an obligation Makes the obligation demandable

Makes the obligation demandable

Suspensive Condition Example

“Mrs Gomez must provide proof that she has resigned as a director by 15 March 2018 or such later date as may be agreed between the parties”

Resolutory Condition

There is a pre-existing obligation being performed by the debtor or passive subject; The happening of this condition extinguishes the obligation

Resolutory Condition Example

“In the event Mrs Gomez does not provide proof that she has resigned as a director of ABC Company by 15 March 2018 the contract will be deemed to be cancelled and be of no force or effect.

Pure Obligations

are demandable at once when the obligation falls due; dependent upon a past event unknown to both parties

Article 1183 Section 1 - Pure and Conditional Obligations

Impossible conditions, those contrary to good customs or public policy and those prohibited by law shall annul the obligation which depends upon them. If the obligation is divisible, that part thereof which is not affected by the impossible or unlawful condition shall be valid.

Article 1186 Section 1 - Pure and Conditional Obligations

The condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfillment. (1119)

Article 1192 Section 1 - Pure and Conditional Obligations

In case both parties have committed a breach of the obligation, the liability of the first infractor shall be equitably tempered by the courts.

Article 1226 Section 6 - Obligations with a Penal Clause

In obligations with a penal clause, the penalty shall substitute the indemnity for damages and the payment of interests in case of noncompliance, if there is no stipulation to the contrary. Nevertheless, damages shall be paid if the obligor refuses to pay the penalty or is guilty of fraud in the fulfillment of the obligation.

Article 1227 Section 6 - Obligations with a Penal Clause

The debtor cannot exempt himself from the performance of the obligation by paying the penalty, save in the case where this right has been expressly reserved for him.

Neither can the creditor demand the fulfillment of the obligation and the satisfaction of the penalty at the same time, unless this right has been clearly granted him

Article 1228 Section 6 - Obligations with a Penal Clause

Proof of actual damages suffered by the creditor is not necessary in order that the penalty may be demanded. (n)

Article 1229 Section 6 - Obligations with a Penal Clause

The judge shall equitably reduce the penalty when the principal obligation has been partly or irregularly complied with by the debtor. Even if there has been no performance, the penalty may also be reduced by the courts if it is iniquitous* or unconscionable**.

Article 1231 Extinguishment of Obligations

Obligations are extinguished:

(1) By payment or performance;

(2) By the loss of the thing due;

(3) By the condonation or remission of the debt;

(4) By the confusion or merger of the rights of creditor and

debtor;

(5) By compensation;

(6) By novation (new legal obligation for an old one).