ART 1169 NO DEMAND, NO DELAY
Kapag kunwari namatay, nadestroy
Ordinary delay – lapse of agreed time but no
demand yet
Legal delay – lapse of agreed time and demand
has already been made (debtor will be liable
for damages)
NOTE: IF THERE IS NO DEMAND THEN THERE IS
NO LEGAL DELAY
NOTE: NO LEGAL DELAY, NO DAMAGES
IN CASE OF FORTUITOUS EVENT:
Ordinary delay: Debtor is not liable for loss
due to fortuitous event
Legal delay: Debtor is liable for loss due to
fortuitous event.
No Demand No Delay EXCEPT:
R – Reciprocal obligation
Ex. Contract of sale (pagbili sa tindahan)
T – Time is of the essence
Ex. Wedding cake sa kasal sa specific na
date, kapag lumagpas sa date ofcourse di mo na
need
O – Obligation expressly provides
Ex. Nakalagay mismo sa contract na di
na need ng demand kasi nakalagay na dun sa
contract
L – Law provides or when the law expressly so
declares
Ex. Income tax law
D – Demand will be useless
Ex.
yung car
Judicial Demand – when complaint is filed in
court
Extra Judicial Demand – When made outside
the court, orally or in writing
KINDS OF DELAY OR DEFAULT:
Mora Solvendi – debtor’s delay
Mora accipiendi – delay of oblige to accept
Compensatio morae – delay on both parties
ART 1170 SI CREDITOR MAY KARAPATAN
MANGHINGI NG DAMAGES IN CASES OF:
When is the debtor liable for damages?
1. Guilty of Fraud
2. Guilty of Negligence
3. Guilty of Delay
4. Contravention of the tenor of the
obligation
Incidental fraud (dolo incidente) – committed
in the performance of an obligation already
existing because of contract.
Causal Fraud (dolo causante) – fraud employed
in the execution of a contract
Kinds of damages:
1. Moral – U can ask for moral damages if
u can prove the u suffered anxiety,
sleepless nights, besmirched reputation
and wounded feeling. THIS MUST BE
PROVED AND NOT MERELY ALLEGED.
2. Exemplary – To correct a wrong or to
set an example for the wrong that was
done
 3. Nominal – To vindicate a right when no commission of fraud by the
other type of damage or damages can debtor.
be awarded to you.
4. Temperate – being asked of when exact ART 1172
amount of damages cannot be NEGLIGENCE – Kapabayaan (Culpa)
determined.
5. Actual – when there is actual loss like  Regulated by COURTS according
loss of profit. THISMUST BE PROVED to the circumstances
6. Liquidated – In contract there is already (difference sa 1171)
a predetermined amount that must be  Needs to prove if there’s a
paid in case of breach of the NEGLIGENCE (ORDINARY
agreement. NEGLIGENCE OR GROSS
NEGLIGENCE)
FRAUD – Pandaraya (Dolo) (Deceipt)
 Test the negligence if DUE
NEGLIGENCE – Kapabayaan DILIGENCE is exercised (Good
father of a family)
Negligence shows bad faith = equal  CONTRACT OF CARRIAGE
fraud (Nonperformance of the (COMMON CARRIER) –
obligation) EXTRAORDINARY DILIGENCE
(ex. Sa jeep)
DELAY – Pagkaantala
Kinds of negligence:
CONTRAVENTION – Hindi pagsunod sa napag-
usapan 1. Contractual negligence (culpa
contractual)
ART 1171
- negligence in the performance of a
FRAUD – Pandaraya (Dolo) (Deceipt) contract
- Master-servant rule (if the servant is
 Past fraud – pwede i-waive (Consent) negligent then the master is also
yung past fraud po is nakaraan na yung negligent (NEGLIGENCE NI EMPLOYEE
nagawa and ang pwede gawin is AY NEGLIGENCE DIN NI EMPLOYER)
patawarin since yung batas natin is - Diligence of a good father of a family is
nirerecognize ang pagpapatawad. not proper defense
 NANGYARI NA. Creditor already
has knowledge on the
commited fraud by the debtor. 2. Civil negligence (culpa acquiliana) aka.
Quasi delicts or culpa extra-contractual
 Future fraud – bawal i-waive, hindi - Acts or omission that cause
kinukunsinte ng batas ang pandaraya damage to another without any
 GAGAWIN PALANG. The pre-existing contract
Creditor doesn’t have the - Master –servant rule does not
knowledge on the possible apply.
 - Diligence of a good father of a
family is a proper defense
- Rules of Fortuitous event
3. Criminal negligence (culpa criminal)
- Negligence that result in the
commission of a crime
- Diligence of a good father of a
family is not proper defense
Ordinary negligence
Gross negligence – kapag masyadong mabigat
yung kapabayaan
ART 1173
Omission of that diligence – nawala yung
ordinary care
Negligence shows bad faith = equal fraud
(Nonperformance of the obligation) DEBTOR IS
LIABLE FOR ALL DAMAGES THAT ATTRIBUTED
TO THE NON-PERFORMANCE OF THE
OBLIGATION
Measure of liability for damages - awarding
damages is to place the innocent party in the
same position of when if the contract or
obligation had been performed according to its
terms
ART 1174
Fortuitous event (force majeure) – event which
cannot be foreseen (earthquake) or although
foreseen, it is inevitable (typhoon)
1. Acts of God – earthquake, flood, rain,
lightning
2. Acts of Man – War, fire, robbery,
murder
Kinds of Fortuitous event:
1. Ordinary fortuitous event
2. Extra-ordinary fortuitous event
General Rule: No person shall be responsible
for fortuitous event (determinate thing).
DEBTOR IS LIABLE FOR FORTUITOUS EVENT
(ONLY IF IT IS A SPECIFIC OR DETERMINATE
THING)
- THIS IS NOT APPLICABLE TO
GENERIC THINGS because it can be
replaced.
Exemption to the rule:
1. When it is a generic thing (generic thing
never perishes)
2. When expressly specified by law (ex.
article 1165) (IF MAY LEGAL DELAY)
3. When there is bad faith, debtor is still
liable
4. When declared by stipulation or by
contract(contract provision) KAPAG
NAPAG USAPAN SA CONTRACT NA
KAHIT MAY FORTUITOUS EVENT TULOY
PARIN OBLIGATION
5. When the nature of the obligation
requires assumption of the risk
Loss due to a fortuitous event in a SPECIFIC
REAL OBLIGATION extinguishes the obligation.
Exception: If the debtor delays and if
the debtor is guilty of bad faith
A GENERIC THING is NEVER LOSS (Genus nun
quam perit) Genus never perishes
ART 1175
Usury – contracting for or receiving interest in
excess of the amount allowed.
Usurious Transaction = High interest loans (EX.
5, 6) SOBRA SOBRANG INTEREST NA INIIMPOSE
SA LOAN
Allowed by the government interest rate = 12%
In 5, 6, in every 5 pesos = 6pesos (1peso
interest) 20% interest rate = usurious
transaction
USURY LAW – BAWAL ANG USURIOUS
TRANSACTION (BUT NOW LEGALLY
INEFFECTIVE) Right now there is no ceiling as to
how much interest rate they can impose AS
LONG AS it is not unconscionable or
unreasonable.
ART 1176
1st – Interest bearing debt
2nd – Debt payable in installments
Kapag nagbayad ka ng principal tapos di mo
binayaran interest tapos di naman nagreklamo
si creditor, ang assumption ng batas is bayad
mo na pati yung interest.
Presumption – pwede marebutt by contrary
evidence
Two kinds of presumption:
1. Conclusive presumption – cannot be
contradicted
2. Disputable or rebuttable presumption
– can be contradicted or rebutted by
presenting proof to the contrary
Principal + interest = total na babayaran
ART 1177
Remedies of the creditor (CUMULATIVE
REMEDIES) – meaning first remedy muna bago
yung sunod
1. Exact fulfillment – creditor can give a
demand letter demanding to pay and if
debtor did not fulfill then the creditor
can file a case for specific performance
or collection of sum of money.
2. To pursue leviable properties of the
debtor – find properties that you can
attach na enough para dun sa debt.
3. Subrogate in debtor’s rights against
third persons (accion
subrogatoria/subrogatory action)-
creditor will look if the debtor has a
receivable.
4. Action for rescission (accion pauliana)
– SUBSIDIARY REMEDY. Cancel
contracts entered into by the debtor
with third party persons. Ex. If may
contract of sale yung debtor or nag
donate ng something then pwede mo
ito ipa-cancel IF YOU CAN PROVE THAT
THE DONATION WAS MADE BY THE
DEBTOR TO DEFRAUD YOU then you
can ask the court for the donation to be
rescind.
NOTE: you can only exercise accion
pauliana ONLY AFTER EXHAUSTING ALL
OTHER REMEDIES because it is a
SUBSIDIARY REMEDY.
ART 1178
Transmissibility of Rights – rights are
transmissible
GENERAL RULE: All rights arising from an
obligation are transmissible
Exemptions to general rule:
1. When by nature, it is NOT transmissible
– PURELY PERSONAL RIGHT (Ex. Right
to vote)
2. Parties agree that the right will not be
transmissible
3. When the law declares that it is not
transmissible
TWO PRINCIPAL KINDS OF CONDITION
Suspensive condition – GIVE RISE TO THE
OBLIGATION the obligation is suspended until
the happening of the uncertain event which
constitutes the obligation (ex. Bibigyan kita ng
1M kapag nanalo ka sa boxing)
Resolutory conditions – the happening of the
event will EXTUNGUISH the obligation. (ex. I
will give u 10k monthly allowance until u
graduated in college)

You can inherit the debt of your parents after
their death
Limitation on inheriting debts: The
limitation is the extent of the value of the
properties that you inherited. KUNG ANO
YUNG HALAGA NA NAIWAN NG PARENTS MO
GANUN LANG BABAYARAN MO. Ex. 10M
utang then yung property nung parents mo is
8M lang then 8M lang babayaran mo
ART 1180
If the agreement or contract will provide that
the debtor binds himself to pay or promises to
pay when his means permit him to do so
(kapag kaya na magbayad)
The acquisition of the means to pay is a PERIOD
or certain to happen. OBLIGATION WITH A
PERIOD

You can still collect the debt owed to your If debtor and creditor CANNOT AGREE as to
parents after their death specific time then the court will fix the period of
time as to when the debtor will perform his
ART 1179 obligation.

Pure obligation – obligation whose fulfillment is

not dependent upon a condition (future,
uncertain or past event unknown to the parties)
DEMANDABLE AT ONCE

- Characterized by its IMMEDIATE

DEMANDABILITY. Pwede mag
demand agad yung creditor.

Conditional obligation – dependent upon the

happening or non-happening of a future and
uncertain event (BOTH MUST BE PRESENT)

If the obligation is dependent a FUTURE and

CERTAIN EVENT that is called OBLIGATION
WITH A PERIOD