Nature and Effects of Obligation -meat of the law

 There are only 4 objects of the prestation

o To give, to do, not to do, and (impliedly included) not to give
 REAL OBLIGATION – obligations with the prestation to give
 PERSONAL OBLIGATIONS – prestation consists either:
o To do - personal POSITIVE obli
o Not to do/give – personal NEGATIVE obli
 Importance of the classification of obligations
o For determination whether Chapter 2 provisions will be applicable to EITHER or both of the said obligations
o This is for the formation of a conclusion free from error

REAL OBLIGATIONS
 Classified on the basis of the object of the obligation (not the object of the prestation) =
-objects of the obligations are always either to give, to do, not to do/give
 Classification of real obligations is BASED on the nature of the prestation/thing to be delivered
 There are 2 types of REAL obligations EXPRESSLY PROVIDED/recognized by the CC
 But by Tolentino, there is the existence of the 3rd kind
 The following are the 3 different types of “to give” obligations:

SPECIFIC/DETERMINATE objects GENERIC/INDETERMINATE objects LIMITED-GENERIC OBJECT – not found in law

 the thing is ONE OF A
KIND-SEGREGATED/SEPARATED from its
class/genus
 Because of such segregation, the thing becomes
UNIQUE- the most important characteristic of
specific/determinate objects
 when the thing intended to be delivered is
lost/destroyed: Obligations BECOMES
IMPOSSIBLE, thus extinguished.
(Tolentino’s 3rd kind)
 Refers only to ONE of its class or genus  This 3rd type was not foreseen by the framers of
 If the initial object was lost/destroyed, it can just the civil law
be replaced by another object belonging to the  an obligation which initially has numerous genus
same Genus/Class but becomes scant.
 Indeterminate that becomes specific
 Is NEVER EXTINGUISHED when the thing
intended to be delivered is lost or destroyed

GOVERNING PROVISIONS GOVERNING PROVISIONS GOVERNING PROVISIONS

 1244 (principal prestation) - to do
– debtor of a thing CANNOT COMPEL the creditor to
receive a different object ALTHOUGH
-the latter is MORE VALUABLE or
-of SAME value
BUT if the debtor HAS DELIVERED THE THING
agreed upon properly,
-the debtor CAN COMPEL the creditor to accept the
same.
-Such non-acceptance by the creditor can give rise to
damages and cause of action
 1246 – the delivery of a generic thing whose  1244
quality and circumstances HAVE NOT BEEN
STATED:
-the creditor CANNOT DEMAND a thing
that has superior or higher value
-the debtor CANNOT DELIVER a thing of
inferior quality or low value
In the fulfillment of the obligation, the
circumstances and the purpose of the obligation
shall be considered
How many ways can an object be delivered?
A=1246,
-one is the delivery of an object of the SAME value,

-another is the acceptance of an object which has

HIGHER value than that agreed upon (one can
always the value in excess to that agreed upon)

 Supplemental obligation under 1163 IS NOT

 1163(supplemental prestation) - to give
-the debtor is obliged to take care of the thing to be
delivered with:
-The proper DILIGENCE of a GOOD FATHER
-UNLESS the LAW/STIPULATION in the agreement
requires ANOTHER standard of care.
-Takes place BEFORE the delivery of the thing or the
fulfillment of the obligation
APPLICABLE in generic objects.
-because the intended thing to be delivered can be
replaced/substituted with a thing from the same
genus if the former is lost/damaged/destroyed
before delivery  1163 is APPLICABLE under these type of
objects as a supplemental prestation
-because caring for LIMITED number of generic
objects before it is delivered will prevent the loss
of ALL the said limited objects.

Purpose of 1163
-it is to ENSURE that the debtor gets to fulfill the
principal obligation; to ensure the EFFICACY of the
fulfillment of the principal obligation

 1166(supplemental) – to give
-applicable to an obligation to deliver a specific object
only  1166 and 1164 IS NOT APPLICABLE in this
type of real object
-the delivery of accessions and accessories of the
principal thing even though such was not mentioned is
deemed included.
 1164(supplemental)
 Is 1166 and 1164 applicable under this type of
object?
 1165 IS NOT APPLICABLE under this because the
object in 1165 must be
INDETERMINATE/GENERIC, the failure of a
debtor to deliver such can be still sought by the  1165, par. 2 – if the thing is
creditor from other persons by making an INDETERMINATE/GENERIC, the creditor may
obligation. ask that the obligation be complied with AT THE
EXPENSE OF THE DEBTOR.

1165 is a remedial measure–a provision the creditor

may avail of if the debtor is no longer willing to fulfill  Is 1165 applicable to this type of object?
the principal obligation. Clue: DEPENDS

In such circumstance when the debtor fails to fulfill the

obligation, ONLY THE CREDITOR IS RELEASED
from the juridical tie. The creditor may now contract the
obligation from other persons BUT the initial debtor is
still bound to fulfill such at his expense and may be
complied by the creditor.
EXAMPLE EXAMPLE EXAMPLE
 a car with a distinct/unique description-  Car-the broad description or the GENUS  an agreement for the delivery of one of the limited
 money edition cars of Toyota, having a total of 3 of its
kind in the world

1. What if the nature of the object of the prestation is specific and was lost/damaged/destroyed, is the obligation extinguished?
a. YES, it becomes IMPOSSIBLE to be fulfilled

2. If a specific thing to be delivered is lost, cause is determined first; causes could be:
i. By the debtor’s fault
ii. By some event that was unforeseen
iii. By some event that could have been foreseen BUT inevitable
1174 – No person shall be responsible for:
-unforeseen events
-foreseen events BUT inevitable
EXCEPT when
-expressly provided by law
-declared in the stipulations of both parties
-when the obligation requires assumption of risk

3. Criterion in determining the nature of the object of the prestation:

a. If before delivery, the thing was lost and such obligation cannot be fulfilled by replacing the former with another, nature is DETERMINATE
i. Obligation results to IMPOSSIBILITY OF FULFILMENT.
b. If in the same circumstance, and from the tenor of the obligation the object lost can be substituted with one of its kind or from the same class or genus,
it is INDETERMINATE. The obligation IS NOT EXTINGUISHED.
i. In civil law, GENUS NEVER PERISHES

4. Why is it important that a debtor follows the correct manner prescribed by law or by an agreement in fulfilling an obligation?
a. The manner of fulfillment will be subordinated under the debtor’s will, which might be impracticable on the part of the creditor
BECAUSE the creditor will have no choice but to accept the said obligation and release the debtor from the juridical tie that binds the latter

When the debtor DOESNOT FOLLOW the manner or the how in fulfilling the obligation agreed upon, the creditor IS NOT BOUND to accept such.
-a cause of action arises

IF the debtor FOLLOWS the prescribed manner in fulfilling the obligation,

-the creditor IS DUTY BOUND to do his part in accepting the fulfillment of the obligation and to release the debtor from the juridical tie.

5. The provisions 1244 and 1246 under the 3 classes of Real obligations refers TO PRINCIPAL OBLIGATIONS
a. In fulfilling an obligation, there are PRINCIPAL obligations (the main) and SUPPLEMENTAL obligations

6. Supplemental obligations are those that the debtor needs to fulfill ASIDE from the principal or agreed-main obligation

7. The provisions for SUPPLEMENTAL obligations are the following:

a. Applicable to specific and limited generic obligations
 i. 1163
ii. 1166
iii. 1164
b. Applicable to Genus
i. 1165

8. Standards of Care or Quantum of Diligence refers to the amount or quantity of a care that is necessary of a person to protect the thing to be delivered

9. Under 1163, there are 3 standards of care according to their degree, (a) being the lowest:
a. Simple Diligence – a standard of care less than DOAGFOAF
b. DOAGFOAF – the default standard of care if the same was not prescribed
c. Extraordinary/Utmost Diligence – a standard of care more than DOAGFOAF
i. Ex. = diligence portrayed under 1733, the diligence required of common carriers

10. Necessity of finding out the proper standard of care to be exercised

a. It is to find out if the said standard was met/applied by the debtor before the delivery of the thing.
b. The standard of car is either PRESCRIBED BY LAW/AGREEMENT

11. Why is it important to determine whether or not the debtor applied the needed standard of care/diligence in the delivery of a thing?
a. Because if the thing is lost/destroyed/damaged and it was found that the debtor DID NOT apply the proper standard of care, the debtor will be
considered NEGLIGENT and Article 1173 of CC will apply.
i. If such negligence is proved, the debtor will be liable for damages

12. 1173 – fault or negligence of an obligor = CONSISTS in the OMISSION of that diligence which is required by the nature of the obligation,
-corresponds with the circumstances of the PERSONS, TIME, and of the PLACE
a. When negligence SHOWS BAD FAITH, = Arts 1171 and 2201(par. 2) shall apply
b. If the law/agreement/contract DOES NOT STATE the standard of care/diligence to be observed, DEFAULT IS DOAGFOAF
c. Negligence does not exclusively mean complete absence of negligence, it also pertains to observing a certain type of diligence that does not meet the
required standard

13. May the parties stipulate that a standard or care or diligence be not required-to waive 1163 and 1173?
a. NO, it will be an INVALID provision. It will be CONTRARY to PUBLIC POLICY
b. It is tantamount to letting debtor exercise negligence.

Justice Jurado: The public policy is that all individuals MUST BE PRUDENT, careful, and diligent in all their actuations = this is precisely the provisions of
quasi-delict.

14. How is Diligence Of A Good Father Of A Family (DOAGFOAF) measured?

a. It is based on the standard of care or prudence an ordinary person is expected of with regard to his own property-the care a prudent person exercises
insofar as his own property is concerned.
b. Diligence of a Good Father is GENERIC, meaning it applies also to women

15. There is NO PROPER CAUSE OF ACTION FOR NEGLIGENCE under generic real obligations.
-The only damages that can be claimed under this obligations is damages incurred from DELAY.

16. In determining the nature of the object of a real obligation, the classification whether it is a specific or generic IS NOT AUTOMATIC.
a. One should still check or look upon the contents of the obligation

Bishop Jaro v Dela Pena case – money was not automatically recognized as an indeterminate obligation by the supreme court.

17. 1174 – NO PERSON shall be responsible for those events which:

a. COULD NOT BE FORESEEN
b. Or which COULD BE FORSEEN BUT is INEVITABLE
EXCEPT in:
-cases EXPRESSLY specified by law
-or when it is OTHERWISE DECLARED by stipulation
-or when the nature of the obligation requires the assumption of RISK

PART 2 – 1st part

#s 18 to 23 APPLY ONLY TO SPECIFIC/DETERMINATE OBJECTS

18. 1166 – purpose of the delivery of accessions and accessories of principal obligations
a. Art. 440 – right accession – refers to fruits and accessories
1. Presumption that the ownership of a principal thing also pertains to the ownership of the latter’s fruits or accessories
ii. Accessories – refers to those contemplated by the provision (ex. Car, accessories are the a/c, radio, etc.)
1. Debtor is obligated also to deliver the principal thing’s accessories
 2. If one wants to waive the delivery of accessories, such must be EXPRESSLY STATED in the agreement
a. In the absence of an express stipulation excluding the delivery of accessories, such is deemed to be included in the
delivery of the principal object
b. Related – Article 441 – to the owner belongs the following:
i. Natural fruits – refers to the spontaneous products of the soil/young/products of animals – Art. 442 – ex. Mangoes, trees, baby cows
ii. Industrial fruits – refers to those produced by lands of ANY KIND through cultivation or labor – Art. 442 – ex. Harvest
iii. Civil fruits – refers to rents of buildings, price of leases of land/other properties, and the amount perpetual annuities or other similar
incomes. These are derived from civil relations. – Art. 442

Fruits are NOT deemed attached to the principal object

19. Is the debtor required to deliver these fruits?

a. 1164 – creditor shall only have right to these fruits FROM THE TIME THE OBLIGATION TO DELIVER IT ARISES.
i. he shall acquire NO REAL RIGHT over it UNTIL THE SAME HAS BEEN DELIVERED to him.
The reckoning point when these fruits are produced IS CRITICAL in determining whether such should be included in the delivery of the principal
object

20. When does the obligation to deliver arises in:

a. Obligation arising from LAW, QUASI-CONTRACT, QUASI-DELICT, Penal laws?
i. The law itself provides for such and when the cause of action arises
b. Obligation arising from CONTRACTS, when is the obligation to deliver is DUE and DEMANDABLE?
i. Found is in the law on sales- 1537
1. Debtor is BOUND to deliver the thing sold AND ITS ACCESSIONS and ACCESSORIES
a. IN THE CONDITION in which THEY WERE UPON THE PERFECTION OF THE CONTRACT.

21. How about in circumstances where a contract was entered into a certain date and it was agreed that the delivery of the object takes place at a later date, does 1537
apply even if the fruits were produced before the agreed delivery date?
a. There are 2 schools of thought for this matter:
i. 1st is YES because the fruits was produced AFTER the perfection of the contract
ii. 2nd is NO, the debtor is not obliged to deliver the fruits if we STRICTLY FOLLOW 1164, because under this article, fruits will be only
deemed included in the principal obligation if such is produced AFTER THE OBLIGATION TO DELIVER ARISES or the suspensive
condition of delivery.
b. THE 2nd SCHOOL OF THOUGHT SHOULD BE FOLLOWED – Dean Ulan the best
i. This is an example of contract which has a suspensive condition. This is based also on the subsequent provision regarding suspensive
conditions in a contract.

IMPORTANT: The law on equity CANNOT GOVERN upon a case IF there is a clear positive law that governs over such subject

22. REAL right versus PERSONAL right

a. PERSONAL right – a cause of action that can only be enforced upon a certain person
i. Example: parties in a contract regarding a specific performance where the other is bound to personally fulfill.
b. REAL right – there is no particular person that you can enforce it against
i. Can be enforced against THE WHOLE WORLD
1. Example – A was stolen by a thief his phone. B, A’s friend, bought from the thief in good faith.
a. A can claim the phone from B without aby court order because such was illegally taken from him.
b. Real right here is A can take the phone either from the thief or from his friend or from anyone who has it.

23. What does DELIVERY mean and the scope of its concept?
a. 1497 – ACTUAL/PHYSICAL delivery - delivery shall be understood as when the thing sold is PLACED IN THE CONTROL and POSSESSION of
the creditor.
b. 1498 – CONSTRUCTIVE delivery – delivery takes place in a sale UPON EXECUTION
-when such is MADE THROUGH A PUBLIC INSTRUMENT.
IF from the deed, the contrary DOES NOT APPEAR or CLEARLY be inferred

-to MOVABLE property, the delivery takes place upon the delivery of the keys of the place or depositary where it is stored or kept.

2nd PART – 2nd part – Damages – 1170 in relation to 1169, 71, 72, 73, 74

3rd PART – 1175 to 1178

23 March 2021

Personal Obligation
Positive Personal Negative Personal
1244 par. 2 – whatever obligation is agreed, that is the only act or object the debtor 1244 par. 2 – whenever one is obliged not to do something, the debtor is not allowed
needs to fulfill or give to substitute it from another “not to do” obligation.
-UNLESS there is a consent form the creditor.
 IMPORTANT:
IMPORTANT: NO compulsion of debtor in obligations NOT-to-do – it is tantamount to involuntary
NO compulsion of debtor in obligations to-do – it is tantamount to involuntary servitude, a criminal offense of coercion
servitude, a criminal offense of coercion -the creditor cannot demand or coerce specific performance under this type
-the creditor cannot demand or coerce specific performance under this type obligation
obligation
REMEDIES ON BREACH
REMEDIES ON BREACH
1167 – 1168 – when the debtor does something to which he is prohibited based on its
1st par: debtor fails to do an obligation, the same shall be executed by the creditor at the obligation, the same act or effect shall be undone at the debtor’s expense
former’s cost
-the creditor can seek the performance of such obligation from another or a 3rd person Remedy
-the effect can be undone by the debtor himself, at his expense
Remedy -the creditor can seek the same to be undone by a 3rd person, at the debtor’s expense
-in the failure of the debtor to do such obligation, when the creditor seeks the -damages under 1170.
performance of such to 3rd persons, the latter is RELEASED from the juridical tie
-Creditor can seek the payment for the later obligation from the initial debtor Instances when the UNDOING cannot be done anymore:
-Creditor may also ask/sue for damages under Art. 1170 -where there is LEGAL impossibility
ex. When the undoing is physically possible BUT will prejudice or damage a 3rd
2nd par: when the debtor does the obligation but in contravention to the tenor of the party who MUST be in good faith.
obligation. It may also be decreed that what has been done poorly be undone. -where there is PHYSICAL impossibility
Remedy
Remedy DAMAGES may be the only remedy.
-Same remedies found under par. 1.

1. When the debtor dies, the obligation, if positive, is extinguished. The same CANNOT be passed to his heirs.
a. However, it is different with negative obligations, the same not being extinguished and can be passed to the debtor’s heirs.
2. Javier Security and Watchman v Shell Craft Inc.
a. Mr Javier owns the petitioner company, the latter not having its own and distinct personality but is based solely on the personality of Javier.
b. Mr Javier dies.

2nd part – 1169 to 1170

COA – cause of action

1. COTOTO – in Contravention on the Tenor of the Obligation

2. Damages creates a new prestation = to give
3. What is this “Damages” referred to in Art. 1170?
a. Compensation or recompense for the injury or damages done by the debtor in its fulfillment of obligations to the creditor
i. Grounds for suing damages: Negligence, Fraud, Delay, COTOTO
b. Another word for “sum of money”
4. If the obligation is a payment of money, the COA can be
a. Compensation of the principal amount and money
b. Damages – payment of interest (2209)
5. Rules in determining the interest for damages
a. Case of Nacar v Gallery Frames (p.76)
i. If the obligation is the payment of a sum of money
1. Interest in accordance to the stipulation agreed by the parties
a. (Art. 1956) – no interest shall be due UNLESS it was EXPRESSLY stipulated (in writing)
b. Interest due SHALL itself EARN LEGAL INTEREST
2. If NO stipulated interest, interest is 6% annum from the time of the judicial/extra-judicial demand
ii. If the obligation DOES NOT CONSTITUTE a payment of sum of money
1. Interest is 6% per annum on the damages awarded by the court
iii. V
6. Delay – mora – concept contemplated under article 1170
7. 2 types of delay
a. Simple delay
b. Legal delay
8. Requisites of a COA to sue for legal delay - 1169
a. Obligation is due and demandable
b. The obligation was demanded
c. The demand must be “liquidated”
d. The debtor fails to deliver or fulfill the obligation
9. What is a liquidated demand?
a. The demand is determined
10. Example of an obligation that is due but NOT demandable
a. An obligation that was due but the creditor has failed to collect the same within a period of time allowed by a prescriptive period.
11. What is the difference of “judicial” or “extra-judicial” demand?
a. Judicial – thru court
b. Extra-judicial – out of court demand or only thru lawyers -the more common type
 i.Can be done Orally or in writing
1. With oral demand – it must be PROVED that the said demand was executed
12. With delay, a COA can only arise if proved that there was a legal delay
a. Exemptions to this rule – 1169
i. If the fulfillment of obligation is expressly stated in the law or
ii. When the fulfillment of obligation is expressly prescribed by the stipulation
1. Rivera v Spouses of Chua
2. SSS v Moonwalk development corp. – for a debtor to be liable for delay when the latter defaulted at the time of the fulfillment of the
obligation, such SHOULD BE EXPRESSLY STIPULATED in the agreement. If this is achieved, DEMAND IS NOT REQUIRED
anymore.
a. The contract should be examined properly to see if the penalties imposed either
i. refers only to the concept of consequence when default is committed or (here, demand is needed)
ii. refers to the expression of the consequence itself when default is committed (here, demand is NOT
needed)
iii. If it can be inferred that in the obligation, time is of the essence or the delivery on a specific time was the controlling motive of the obligation
1. Barzaga case
2.
iv. When the demand would be useless-when the obligor has rendered it beyond his power to perform the obligation
1. Anticipatory Breach
2. Constructive Breach
Presumption is “good faith” that the debtor was not able to fulfill his obligations due to some circumstances or fortuitous events

This just means that there’s no need to demand, an action for civil action may arise when the debtor fails to fulfill his obligations at the agreed due date
Criterion in determining when demand is useless:

a. Demand’s use: to determine may be held liable for damages

13. What is the justification of imposing interest in delays?
a. Compensation – for the loss of opportunity of the creditor to use or profit from his money that was not yet delivered due to debtor’s delay

April 6, 2021

DEFAULT

 American Express v Pantaleon

-SC explained the distinction between Mora solvendi and Mora Accipiendi
-Mora Accipinedi – delay on the part of the creditor to accept and to release the debtor from juridical tie
o Requisites
 The debtor has fulfilled the obligation
 The debtor has tendered the payment or fulfillment of the obligation
 Creditor refuses to accept the payment or release the debtor from the juridical tie
o TOPAC – 1256-1261 – steps that the debtor would have to take to hold the creditor liable for damages and for the debtor to be released from the
juridical tie when creditor refuses to release him.
 Compensatio Morae (found in RECIPROCAL obligation)
o When do you get to know that a party in an obligation is in default (legal delay) **if “delay” only, it refers to simple delay
 Answer is found on last par. of 1169 – thoroughly discussed by Nachura
 Remedy is 1165 and 1170
o When a party FUFILLS his obligation incumbent upon him, when the other FAILS to fulfill his, the default on the latter’s part occurs.
o Only applicable when THERE IS SIMULTANEOUS FULFILLMENT between the parties – both obligations are DUE and DEMANDABLE at the
same time
o If NOT simultaneous Fulfillment, this does not apply. RATHER, what applies is the 1st par. of 1169 – application of MORA SOLVENDI and
DEMAND IS NEEDED
o Contract of Loan is a reciprocal obligation

FRAUD

 Distinguish the fraud under 1171 from 1338

o In 1171 – fraud in the performance of an obligation.
 There is a PRE-EXISTING obligation, and it is in the fulfillment of this that the fraud was committed
o In 1338 – fraud is the use of insidious words or machination to lure a person to enter in a contract
 INDEPENDENT or NO pre-existing obligation
 The COA of each type of fraud is different
o In 1171 – there could a COA for
 DAMAGES and/or
 to compel the debtor for a specific performance
o In 1338 – the only COA is
 DAMAGES and
 annulment of the Contract =
 NO insistence of performance
 In 1171, waiver of an action for future fraud IS VOID
  What is fraud?
o Conscious and intentional design to evade the normal fulfillment of an existing obligation
o There is that AWARENESS of the violation of the normal requirement in fulfilling the obligation
 Consequences are damages
o There is BAD FAITH always
o In dealy/negligence/cototo – there may or may not be bad faith
 Related is the case of Cathay Pacific v Alvarez (assigned case)
o The only fraud in this case was the refusal of the ground stewardess to give the first-class seats to other business class passengers
 DOLO causante and DOLO incidente – refers to 1338

NEGLIGENCE

 Article 1172 and 1173 in relation to 1163

 1163 refers to the required degree of care in obligations
 If the debtor was not able to fulfill the obligation with the required diligence, the said failure is tantamount to Negligence
o Such failure, for a COA may arise, should be the proximate cause to the injury/loss/damages incurred by the creditor
o It is important to ascertain if the alleged negligence was the cause of the resulting damage/injury/loss on the part of the creditor.
 To be exempt from damages due to negligence
o Is 1174 – fortuitous events or force majeure, unforeseeable or foreseeable but inevitable
 Below are both Negligence – tackled in the case of Orien Freight v Keihen Everett

1171 – Culpa Contractual 2176 – Culpa Aquiliana – quasi-delicts

1. There is an EXISTING or PRE-EXISITING contractual obligation – Jurado 1. No contract but THERE IS OBLIGATION
-the said obligation is the requirement of prudence in each person – Art. 19
2. Negligence is PRESUMED once the contract is breached. It is for the debtor to 2. The negligence must be proven by the complainant, the burden of proof is on the
prove that there was no negligence on his part. complainant – negligence is NOT presumed
3. The negligence is INCIDENTAL to the performance of the contractual obligation 3. It is the negligence itself that calls for the guilty party to pay for damages, thus, the
negligence is INDEPENDENT

 Related is the case of Saludaga v FEU (assigned case)

o In CC, there has to be more evidence to show the utmost diligence
o In CA, not the same as in CC.
 In a negligent act, is it possible that bot culpa arises? Yes
 IF the contracting parties that breaches the contract would have given rise to a quasi-delict had there been no contract, the contract may be deemed breached by a
tort and held liable by 2176.
o Related is Carrascoso v Air France – opposite of the Cathay v Alvarez – Carrascoso‘s seat from first class was downgraded.
 SC held that the negligent was CA not CC, because it constituted CA, the discrimination committed in bad faith Carrascoso was subjected to
(pinoy kasi siya tapos nilagay sa upuan niya is European kasi di siya puti)
 Related case: Meralco v Ramoy (assigned case)

Third type of culpa – culpa criminal – it is in CRIM LAW

ARTICLE 1174 – Fortuitous Events

 When the creditor is to initiate an action for damages, debtors usually resort to 1174
 Fortuitous events sometimes refers to Force Majeure = WRONG
o Wrong to identify fortuitous events as act of God or act of man – they are only considered as fortuitous events BUT NOT TYPES
 Fortuitous events DEPENDS on the facts or circumstances accompanying the cases.
 Types of Fortuitous events
o An event that is UNFORSEEN or unforeseeable
o Event that was FORSEEN or foreseeable BUT INEVITABLE
 Requisites of Fortuitous Events
o The event MUST BE INDEPENDENT of the will of either of the parties = an act of GOD or Man
o Unforeseen OR Foreseen but Inevitable
o It must be the PROXIMATE CAUSE that renders the debtor impossible to fulfill the obligation
o The obligor is FREE from ANY PARTICIPATION in the aggravation of the injury resulting to the fortuitous event
 Acts of God
o Nakpil Company v CA
 The building that the petitioner built sustained damages from an earthquake. Petitioner invoked 1174
 SC found that petitioner, in building the subject property, deviated from the original plans drawn which consisted of the defenses from
earthquakes, thus, inferred that Nakpil indeed foresaw the occurrence of earthquakes
 SC held that the earthquake was NOT fortuitous event and that the damages sustained was out of the negligence or breach of Nakpil in
erecting the building
o Luzon Stevedoring v RP (assigned case) – collision of a boat by the petitioner to the Nagtahan bridge, causing the latter damages.
o Tanguilig v CA (assigned case) – windmill erected by petitioner was knocked down by a strong wind

 Acts of Man
 o Austria v CA
 Jewelry was entrusted to the defendant for its sale. When she was on her way to return the jewelry, failing to sell the same, a man robbed her
 Petitioner invoked fortuitous event
 SC agreed that it was a fortuitous event
 The event happened in 1963, decision was promulgated in 1970
 In 1963, criminality rates were low as to not foresee such event to happen. Were the robbery happened in 1970, the defense of
fortuitous event would have bee untenable
o Jimmy Co v CA, Broadway – carnapping (assigned case)
o Sicam v Jorge – pawnshop robbery (assigned case)
o Hernandez v COA – holdapping (assigned case)

 READ Abrogar v Cosmos Bottling Company and Intergames and Orient Freight v Keihen-Everret
 Discussions on the exemptions to the rule of fortuitous events
 NEVERMIND ART 1175 – dealt with banking laws
 READ 1176,
o 1235
o 1252 and 1253
o 1956
o MEMORIZE 1431