E.

Breach of Obligations

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. (1101)

Manner of Breach
Fraud
Article 1171.
● Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for future fraud is void. (1102a)

Article 1338.
● There is fraud when, through insidious words or machinations of one of the contracting parties, the other is induced to enter
into a contract which, without them, he would not have agreed to. (1269)

Article 1344.
● In order that fraud may make a contract voidable, it should be serious and should not have been employed by both
contracting parties.

Negligence
Article 1171.
● Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for future fraud is void. (1102a).

Article 1172.
● 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.
 ● 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.

If the law or contract does not state the diligence which is to be observed in the performance, that which is expected of a good
father of a family shall be required. (1104a)

Delay
Article 1169.
● 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.
However, the demand by the creditor shall not be necessary in order that delay may exist:

(1) When the obligation or the law expressly so declare; 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.

In reciprocal obligations, 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.
(1100a)

Article 1165.
● When what is to be delivered is a determinate thing, the creditor, in addition to the right granted him by article 1170, may
compel the debtor to make the delivery.

If the thing is indeterminate or generic, he may ask that the obligation be complied with at the expense of the debtor.
 If the obligor delays, or has promised to deliver the same thing to two or more persons who do not have the same interest, he
shall be responsible for any fortuitous event until he has effected the delivery. (1096)

Article 1786.
● Every partner is a debtor of the partnership for whatever he may have promised to contribute thereto.

Article 1788.
● A partner who has undertaken to contribute a sum of money and fails to do so becomes a debtor for the interest and
damages from the time he should have complied with his obligation.

The same rule applies to any amount he may have taken from the partnership coffers, and his liability shall begin from the
time he converted the amount to his own use. (1682)

Article 1896.
● The agent owes interest on the sums he has applied to his own use from the day on which he did so, and on those which he
still owes after the extinguishment of the agency. (1724a)
Article 1942.
● The bailee is liable for the loss of the thing, even if it should be through a fortuitous event:

(1) If he devotes the thing to any purpose different from that for which it has been loaned; cd i

(2) If he keeps it longer than the period stipulated, or after the accomplishment of the use for which the commodatum has
been constituted;

(3) If the thing loaned has been delivered with appraisal of its value, unless there is a stipulation exempting the bailee from
responsibility in case of a fortuitous event;

(4) If he lends or leases the thing to a third person, who is not a member of his household;

(5) If, being able to save either the thing borrowed or his own thing, he chose to save the latter. (1744a and 1745)

Any other manner of contravention

Excuses for non-performance
Fortuitous Event

Article 1174.
● 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 552.
● A possessor in good faith shall not be liable for the deterioration or loss of the thing possessed, except in cases in which it is
proved that he has acted with fraudulent intent or negligence, after the judicial summons.

A possessor in bad faith shall be liable for deterioration or loss in every case, even if caused by a fortuitous event. (457a)

Article 1165.
● When what is to be delivered is a determinate thing, the creditor, in addition to the right granted him by article 1170, may
compel the debtor to make the delivery.

If the thing is indeterminate or generic, he may ask that the obligation be complied with at the expense of the debtor.

If the obligor delays, or has promised to deliver the same thing to two or more persons who do not have the same interest, he
shall be responsible for any fortuitous event until he has effected the delivery. (1096)

Article 2147.
● The officious manager shall be liable for any fortuitous event:

(1) If he undertakes risky operations which the owner was not accustomed to embark upon;
 (2) If he has preferred his own interest to that of the owner;

(3) If he fails to return the property or business after demand by the owner;

(4) If he assumed the management in bad faith. (1891a)

Article 2159.
● Whoever in bad faith accepts an undue payment, shall pay legal interest if a sum of money is involved, or shall be liable for
fruits received or which should have been received if the thing produces fruits.

He shall furthermore be answerable for any loss or impairment of the thing from any cause, and for damages to the person
who delivered the thing, until it is recovered. (1896a)

Act of creditor

Remedies for Breach of Obligations

Article 1165.
● When what is to be delivered is a determinate thing, the creditor, in addition to the right granted him by article 1170, may
compel the debtor to make the delivery.

If the thing is indeterminate or generic, he may ask that the obligation be complied with at the expense of the debtor.

If the obligor delays, or has promised to deliver the same thing to two or more persons who do not have the same interest, he
shall be responsible for any fortuitous event until he has effected the delivery. (1096)

Article 1166.
● The obligation to give a determinate thing includes that of delivering all its accessions and accessories, even though they may
not have been mentioned. (1097a)

Article 1167.
 ● 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.
● 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 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. (1101)

Article 1177.
● The creditors, after having pursued the property in possession of the debtor to satisfy their claims, may exercise all the rights
and bring all the actions of the latter for the same purpose, save those which are inherent in his person; they may also impugn
the acts which the debtor may have done to defraud them. (1111)

Article 1178.
● Subject to the laws, all rights acquired in virtue of an obligation are transmissible, if there has been no stipulation to the
contrary. (1112)

Article 1191.
● The power to rescind obligations is implied in reciprocal ones, in case one of the obligors should not comply with what is
incumbent upon him.

The injured party may choose between the fulfillment and the rescission of the obligation, with the payment of damages in
either case. He may also seek rescission, even after he has chosen fulfillment, if the latter should become impossible.

The court shall decree the rescission claimed, unless there be just cause authorizing the fixing of a period.
 This is understood to be without prejudice to the rights of third persons who have acquired the thing, in accordance with
articles 1385 and 1388 and the Mortgage Law. (1124)

Article 1192.
● In case both parties have committed a breach of the obligation, the liability of the first infractor shall be equitably tempered by
the courts. If it cannot be determined which of the parties first violated the contract, the same shall be deemed extinguished,
and each shall bear his own damages. (n)

Article 2236.
● The debtor is liable with all his property, present and future, for the fulfillment of his obligations, subject to the exemptions
provided by law. (1911a)

Article 302.
● Neither the right to receive legal support nor any money or property obtained as such support or any pension or gratuity from
the government is subject to attachment or execution. (n) cdtai

Article 1708.
● The laborer’s wages shall not be subject to execution or attachment, except for debts incurred for food, shelter, clothing and
medical attendance.

Article 153, FC.

● The family home is deemed constituted on a house and lot from the time it is occupied as a family residence. From the time of
its constitution and so long as any of its beneficiaries actually resides therein, the family home continues to be such and is
exempt from execution, forced sale or attachment except as hereinafter provided and to the extent of the value allowed by
law. (223a)

Article 155, FC.

● The family home shall be exempt from execution, forced sale or attachment except:

(1) For nonpayment of taxes;

 (2) For debts incurred prior to the constitution of the family home;

(3) For debts secured by mortgages on the premises before or after such constitution; and

(4) For debts due to laborers, mechanics, architects, builders, materialmen and others who have rendered service or
furnished material for the construction of the building. (243a)

Rule 39, Sec. 13. Rules of Court.

● Property exempt from execution. — Except as otherwise expressly provided by law, the following property, and no other, shall
be exempt from execution:

(a) The judgment obligor's family home as provided by law, or the homestead in which he resides, and land necessarily used
in connection therewith;

(b) Ordinary tools and implements personally used by him in his trade, employment, or livelihood;

(c) Three horses, or three cows, or three carabaos, or other beasts of burden, such as the judgment obligor may select
necessarily used by him in his ordinary occupation;

(d) His necessary clothing and articles for ordinary personal use, excluding jewelry;

(e) Household furniture and utensils necessary for housekeeping, and used for that purpose by the judgment obligor and his
family, such as the judgment obligor may select, of a value not exceeding one hundred thousand pesos;

(f) Provisions for individual or family use sufficient for four months;

(g) The professional libraries and equipment of judges, lawyers, physicians, pharmacists, dentists, engineers, surveyors,
clergymen, teachers, and other professionals, not exceeding three hundred thousand pesos in value;

(h) One fishing boat and accessories not exceeding the total value of one hundred thousand pesos owned by a fisherman and
by the lawful use of which he earns his livelihood;
 (i) So much of the salaries, wages, or earnings of the judgment obligor for his personal services within the four months
preceding the levy as are necessary for the support of his family;

(j) Lettered gravestones;

(k) Monies, benefits, privileges, or annuities accruing or in any manner growing out of any life insurance;

(l) The right to receive legal support, or money or property obtained as such support, or any pension or gratuity from the
Government;

(m) Properties specially exempted by law.

But no article or species of property mentioned in this section shall be exempt from execution issued upon a judgment
recovered for its price or upon a judgment of foreclosure of a mortgage thereon. (12a)

Extra-judicial remedies
Expressly granted by law

Article 1786.
● Every partner is a debtor of the partnership for whatever he may have promised to contribute thereto.

He shall also be bound for warranty in case of eviction with regard to specific and determinate things which he may have
contributed to the partnership, in the same cases and in the same manner as the vendor is bound with respect to the vendee.
He shall also be liable for the fruits thereof from the time they should have been delivered, without the need of any demand.
(1681a)

Article 1788.
● A partner who has undertaken to contribute a sum of money and fails to do so becomes a debtor for the interest and
damages from the time he should have complied with his obligation.

The same rule applies to any amount he may have taken from the partnership coffers, and his liability shall begin from the
time he converted the amount to his own use. (1682)
Article 1526.
● Subject to the provisions of this Title, notwithstanding that the ownership in the goods may have passed to the buyer, the
unpaid seller of goods, as such, has:

(1) A lien on the goods or right to retain them for the price while he is in possession of them;

(2) In case of the insolvency of the buyer, a right of stopping the goods in transitu after he has parted with the possession of
them;

(3) A right of resale as limited by this Title;

(4) A right to rescind the sale as likewise limited by this Title.

Where the ownership in the goods has not passed to the buyer, the unpaid seller has, in addition to his other remedies, a right
of withholding delivery similar to and coextensive with his rights of lien and stoppage in transitu where the ownership has
passed to the buyer. (n)

Stipulated

Judicial Remedies
Principal remedies

Article 1191.
● The power to rescind obligations is implied in reciprocal ones, in case one of the obligors should not comply with what is
incumbent upon him.

The injured party may choose between the fulfillment and the rescission of the obligation, with the payment of damages in
either case. He may also seek rescission, even after he has chosen fulfillment, if the latter should become impossible.

The court shall decree the rescission claimed, unless there be just cause authorizing the fixing of a period.
 This is understood to be without prejudice to the rights of third persons who have acquired the thing, in accordance with
articles 1385 and 1388 and the Mortgage Law. (1124)

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. (1101)

Subsidiary remedies

Article 1380.
● Contracts validly agreed upon may be rescinded in the cases established by law. (1290)

Article 1177.
● The creditors, after having pursued the property in possession of the debtor to satisfy their claims, may exercise all the rights
and bring all the actions of the latter for the same purpose, save those which are inherent in his person; they may also impugn
the acts which the debtor may have done to defraud them. (1111)

Ancilliary remedies

● Rules of Court