NATURE AND

EFFECT OF
OBLIGATIONS
Baytec, Kirsten Althea
PRESENTED BY:
Hilario, Cate Krychan P.
Juanta, Francine Dione I.
Ocasla, Jeanmel P.
Yepes, Ella Marie L.
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.
DELAY
Obligation - A juridical necessity to give, to do, or not to do something.
Delay (or Mora) - The failure of the debtor to perform an obligation after it
has become due and demandable.
a. Ordinary Delay – is merely the failure to perform an obligation on time.
b. Legal Delay or default or mora – is the failure to perform an obligation on
time which failure, constitutes a breach of the obligation.
 KINDS OF DELAY OR DEFAULT
1. Mora solvendi – or the delay on the part of the debtor to fulfill his
obligation (to give or to do) by reason of a cause imputable to him;
2. Mora accipiendi – or the delay on the part of the creditor without
justifiable reason to accept the performance of the obligation; and
3. Compensatio morae – or the delay of the obligors in reciprocal
obligations (like in sale), ie., the delay of the obligor cancels the delay of
the obligee, and the vice versa.
REQUISITES OF THE DELAY OR DEFAULT BY THE DEBTOR.

1. Failure of the debtor to perform his (positive) obligation on the

date agreed upon.
2. Demand made by the creditor upon the debtor to comply with
his obligation which demand may either be judicial or
extrajudicial.
3. Failure of the debtor to comply with such
demand.
EFFECTS OF DELAY
(1) MORA SOLVENDI
(a) The debtor is guilty of breach or violations
of the obligation;
(b) He is liable to the creditor for interest or
damages
(c) He is liable even for fortuitous event when
the obligation is to deliver a determinate
(2) MORA ACCIPIENDI
(a) The creditor is guilty of breach of
obligations.
(b) He is liable for damages suffered, if any. By the debtor;
(c) He bears the risk of loss of the thing due;
(d) Where the obligation is to pay money,
the debtor is not liable for interest from
the time of creditor’s delay; and
(e) The debtors may release himself from the
obligation by the consignation or deposit in
court of the thing or sum due.

(3) COMPENSATIO MORAE

Legally speaking, there is no default or delay on
the part of both parties.(if it cannot bedetermined which
of the parties is guilty ofdelay, the contract shall be
deemed extinguished and each shall bear his own damages
(Art.1192)
WHEN DEMAND IS NOT NECESSARY TO PUT DEBTOR IN DELAY.

(1) When the obligation so privides.

(2) When the law so provides.
(3) When time is of the essence.
(4) When demand would be useless.
(5) When there is performance by a party in
reciprocal obligation
 FRAUD (ART. 1171) -
Art. 1171. Responsibility arising from fraud is demandable in all
obligations. Any waiver of an action for future fraud is void

There are several kinds of fraud, including

1. Misrepresentation -Providing false information to induce someone to enter into a

contract.
2. Concealment -Intentionally hiding important facts from the other party.
3. Nondisclosure- Failing to disclose relevant information that would affect the other
party's decision.
4. False pretenses - Making false statements about material facts to deceive someone into
a contract. These are just a few examples, but fraud can take various forms depending on
the circumstances of the case.
 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. Responsibility arising from
negligence demandable The debtor is liable for damages resulting from
negligence or culpa. The courts are given wide discretion in fixing the
measure of damages.The fault of one cancels the negligence of the other
if both parties are mutually negligent. Thus, their rights and obligations
are determined equitably under the law
 VALIDITY OF WAIVER OF ACTION
ARISING FROM NEGLIGENCE.
1. An action for future negligence (not fraud)
may be renounced except where the nature of
the obligation requires the exercise of
extraordinary diligence as in the case of
common carriers.
2. Where negligence is gross or shows bad faith,
it is considered equivalent to fraud.
KINDS OF NEGLIGENCE ACCORDING TO THE SOURCE OF
OBLIGATION
1. Contractual negligence (culpa contractual)
– or negligence in contracts resulting in their breach Article 1172 refers
to “culpa contractual.”

2. Civil negligence (culpa aquiliana)

– or negligence which by itself is the source of an obligation between
the parties not formally bound before by any pre-existing contract. It is
also called “tort” or “quasi-delict.” a person can excuse himself from
liability by providing that he had exercised diligence, a complete
defense. While this can only mitigate damages for culpa contractual.
 1. Criminal Negligence (culpa criminal)
– or negligence resulting in the commission of a crime. Effect of
negligence on the part of the injured party.Suppose the creditor
is also guilty of negligence, can he recover damages? Article
2179 of the Civil Code Provides: “When the plaintiff’s own
negligence was the immediate
and proximate cause of his injury, he cannot recover damages.
But if his negligence was only contributory, the immediate and
proximate cause of the injury being the defendant’s lack of due
care, the plaintiff may recover damages, but the courts shall
mitigate the damages to be awarded.”
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 person, 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.
DEGREES OF CULPA (NEGLIGENCE) UNDER ROMAN LAW
CULPA LATA– grave negligence Of light diligence is
required, it is only grave negligence that will make the
debtor liable.
CULPA LEVIS– Ordinary negligence If Ordinary diligence
is required, it is ordinary negligence that will make the
debtor liable.
CULPA LEVISSIMA– slight negligence If great diligence is
required, even slight negligence will make the debtor
liable.
Kinds of Diligence under the Civil Code
1. Agreed upon by the parties
1. It is stipulated in the contract or by the parties the kind of
diligence to be observes in the performance of the delivery or
service.
2. In the absence of (1), that required by the law (particular
provisions)
1. There are diligences that do not need to be agreed upon or
stipulate in the contract before diligence arises. The law has
implemented certain diligence (Extraordinary) that should be
observed.
3.In the absence of (b), that expected of a good father of a family
(bonum
pater familia)
1. 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.
 NEGLIGENCE VS. DILIGENCE
Negligence – “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.” (CIVIL CODE, Article 1173)
Negligence is the failure to observe for the protection of the interests of another person
that degree of care, precaution, and vigilance which the circumstances justly demand,
whereby such other person suffers injury. (Abrogar v. Cosmos Bottling Company and
Intergames, Inc., G.R. No. 164749, March 15, 2017, Per Bersamin, J.)
Diligence – The Supreme Court has defined “ diligence” as that extreme measure of care
and caution which persons of unusual prudence and circumspection observe for securing
or preserving their own property or rights. This exacting standard imposed is intended to
tilt the scales in favor of the shipper who is at the mercy of the common carrier once the
goods have been lodged for shipment. When employee’s negligence causes damage or
injury, there arises presumption juris tantum that the employer failed to exercise
diligentissime patris families in selection or supervision of employees.
CONTRAVENTION OF THE TENOR OF THE
OBLIGATION ( ART. 1170, NCC )
Article 1170 of the Civil Code of the Philippines states that
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. In simpler terms, if someone fails to fulfill their
obligation as agreed upon in a contract or agreement, they
can be held responsible for any resulting damages.
FORTUITOUS EVENT, Article 1174
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.
FORTUITOUS EVENT, Article 1174
Fortuitous Event– event which cannot be foreseen or even
can be foreseen, is inevitable.

It can be:
Act of man– independent will of the obligor but not of
other human wills. ( War, fire, robber, murder etc.)

Act of God (force majeure or majeure)– totally

independent will of every human being. (Earthquake,
flood, rain, lightning, eruption etc.)
 KINDS OF FORTUITOUS EVENT
Ordinary Fortuitous events– common and can
be seen by contracting parties (rain , etc.)

Extra-ordinary Fortuitous events– events which are

uncommon and contracting parties cannot
reasonably seen. (earthquake, fire, war, pestilence) .
REQUISITES OF A FORTUITOUS EVENT.
1. The event must be independent of the human will or
at least of the debtor’s will
2. The event could not be foreseen, or if foreseen, is
inevitable.
3. It is impossible for the debtor to comply with his
obligation in a normal manner.
4. The debtor must be free from any participation in the
injury to the creditor
EXCEPTIONS:
1. Law
2. Nature of the obligation requires the assumption of risk
3. Stipulation
4. The debtor is guilty of dolo, malice or bad faith, has Promised the same
thing to two or more persons who does not have the same interest
5. The debtor Contributed to the loss (Tan v. Inchausti & Co, G.R. No. L-6472,
Mar, 7, 1912)
6. The possessor is in Bad faith (Art. 552)
7. The obligor is Guilty of fraud, negligence or delay or if he contravened the
tenor of the obligation (Juan Nakpil v. United Construction Co., Inc. v. CA,
G.R. No. L-47851, Apr. 15, 1988)
References:

(Abrogar v. Cosmos Bottling Company and Intergames, Inc., G.R. No.

164749, March 15, 2017, Per Bersamin, J.)

Baron, T. ( 2018 ) Bus Law Article 1173-1192.

https://www.coursehero.com/file/31250335/BUSLAW-Article-1173-
to-1192docx/

Responsibility Arising From Negligence ( 2021 )

https://www.coursehero.com/file/p17t560/ARTICLE-1172-
Responsibility-arising-from-negligence-in-the-performance-of-
every

https://www.studocu.com/ph/document/baliuag-
university/accountancy/simple-reference-for-obligation-and-
contracts/11352705?
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