SPECIFIC CIRCUMSTANCES
AFFECTING OBLIGATIONS IN
GENERAL;
SOURCES OF DAMAGES
ATTY. GLESSA ROSE A. JANOLINO
SOURCES OF DAMAGES OR LIABILITY
1. Fraud
2. Negligence
3. Delay
4. Contravention of the tenor of the obligation
FRAUD
KINDS OF FRAUD
DOLO CAUSANTE DOLO INCIDENTE
(CAUSAL FRAUD) (INCIDENTAL DECEIT)
It is the efficient cause to the Not the efficient cause
giving of consent to the
contract
Renders the contract Does not affect the validity
voidable of the contract
Annulment with damages Claim for damages only
WAIVER OF FRAUD
´ Only those fraud committed in the past may be waived.
The creditor has the right to forgive any fraud committed
in the past by the debtor.
´ An agreement to waive an action for future fraud is
void.
NEGLIGENCE
NEGLIGENCE (CULPA)
´ Negligence is the failure to use the care and diligence
demanded by the special relationship between the
plaintiff and defendant under the circumstances that
arise from inattention, careless conduct, or want of care.
KINDS OF NEGLIGENCE
a. Culpa Contractual (Contractual Negligence)
b. Culpa Aquiliana (Quasi-delict)
CULPA CONTRACTUAL
(Contractual Negligence)
´ Fault or negligence incident in the performance of an
obligation which already existed, and which increases
the liability from such already existing obligation.
DELAY
DELAY (Mora)
´ Failure to perform an obligation on time.
KINDS OF DELAY
a. Mora solvendi – the delay on the part of the
debtor to fulfill his obligation.
b. Mora accipiendi – the delay on the part of the
creditor to accept the performance of the
obligation.
c. Compensatio morae – the delay of the obligors
in reciprocal obligations.
REQUISITES TO MAKE DEBTOR LIABLE
FOR DELAY
a. Failure of the debtor to perform his obligation on the
date agreed upon.
b. Judicial or extrajudicial demand made by the creditor
upon the debtor to comply with his obligation.
c. Failure of the debtor to comply with such demand.
GENERAL RULE:
“No demand, no delay.”
EXCEPTIONS:
a. When the obligation so provides
b. When the law so provides
c. When time is of the essence
d. When demand is useless
EFFECT OF DELAY ON THE PART OF THE
DEBTOR
´ The debtor will be liable:
1. For breach of obligation or contracts;
2. For damages;
3. Even if the loss of the thing was due to a fortuitous event
because of the delay.
EFFECT OF DELAY ON THE PART OF THE
CREDITOR
1. Breach of obligation or contract;
2. The debtor shall be relieved from responsibility if the
thing is lost;
3. The creditor is liable to pay for the expenses incurred by
the debtor in preserving the object; and
4. The debtor’s obligation may be extinguished by
consignation by the debtor.
WAYS TO DEMAND THE FULFILLMENT
OF THE OBLIGATION
1. Judicial demand
2. Extrajudicial demand
CONTRAVENTION OF THE TENOR OF
THE OBLIGATION
CONTRAVENTION OF THE TENOR OF THE
OBLIGATION
Ø If the debtor promised to deliver something and failed to
fulfill it, the debtor has the right to file an action against
the debtor.
REMEDIES OF THE CREDITOR
Ø Exact fulfillment
Ø Pursue leviable property of debtor
Ø Bring all rights and actions of the debtor against another
person
Ø Rescission
REMEDIES/ACTION TO PROTECT THE
CREDIT EXTENDED BY THE CREDITOR
1. Exhaust the properties of the debtor through levying by
attachment and execution upon all the property of the
debtor, except those that are exempt by law from
execution;
2. Exercise all the rights and actions of the debtor, save
those personal to him (accion subrogatoria);
3. Seek rescission of the contracts executed by the debtor
in fraud of their rights (accion pauliana)
ACCION SUBROGATORIA: Requisites
a. The assets of the debtor must be insufficient to satisfy
the claims against him by the creditor;
b. The creditor must have pursued all the properties of the
debtor;
c. The right of action must be personal; and
d. The debtor whose right of action is exercised must be
indebted to the creditor.
ACCION PAULIANA: Requisites
a. The plaintiff asking for rescission has a credit prior to the
alienation, although demandable later;
b. The debtor has made a subsequent contract
conveying a patrimonial benefit to a third person;
c. The creditor has no other legal remedy to satisfy his
claim;
d. The act being impugned is fraudulent;
e. The third person who received the property conveyed,
if it is by onerous title, has been an accomplice in the
fraud.
RIGHT OF RESCISSION
´ this retaliatory remedy is given to the contracting party
who suffers the injurious breach on the premise that it is
“unjust that a party be held bound to fulfill his promises
when the other violates his.”
´ The general rule is that rescission of a contract will not be
permitted for a slight or casual breach, but only for
substantial and fundamental violations as would defeat
the very object of the parties in making the agreement.
THE REMEDY OF RESCISSION IS
ALTERNATIVE
the injured party may:
a. File a case for specific performance, or
b. To file a case for rescission,
With payment of damages in either case.
However, the debtor may only choose one of those
remedies.
THANK YOU!