Summary
Highlights
Understanding Delay (Mora) - Article 11690:00:05
Article 1169 defines delay as occurring when the obligee judicially or extrajudicially demands fulfillment of an obligation. The general rule is 'no demand, no delay.' Exceptions include when the law or obligation expressly declares it, when time is of the essence, or when demand would be useless. Extrajudicial demands can be verbal, written, or electronic, while judicial demands are made through courts. Delay can be intentional (dolo) or due to negligence (culpa).
Kinds of Mora (Delay)0:03:17
There are three types of mora: Mora Solvendi (delay by the debtor to perform, categorized into 'ex re' for obligations to give and 'ex persona' for obligations to do), Mora Accipiendi (delay by the creditor to accept delivery), and Compensatio Morae (default by both parties in reciprocal obligations, where delay begins for one party when the other fulfills their obligation).
Exceptions to Demand0:05:52
Demand is not necessary in three cases: when the obligation or law expressly states it (e.g., income tax payment deadlines), when time is the controlling motive (e.g., birthday cakes, wedding dresses), or when the obligor has rendered performance impossible (e.g., property executed by the court).
Reciprocal Obligations and Delay0:10:36
In reciprocal obligations, like a contract of sale, neither party incurs delay if the other doesn't comply. Delay for one party begins the moment the other fulfills their obligation. For example, if the buyer pays but the seller doesn't deliver, the seller is in delay without a demand.
Liability for Damages - Article 11700:12:48
Article 1170 states that those guilty of fraud, negligence, or delay in performing obligations, or contravening the tenor of the obligation, are liable for damages. It clarifies the distinction between 'injury' (legal invasion of a right), 'damage' (hurt resulting from injury), and 'damages' (compensation for damage suffered).
Voluntary Breach of Obligation: Fraud and Negligence0:14:12
Voluntary breaches include fraud (dolo), negligence (culpa), delay (mora), and contravention of the obligation's tenor. Fraud involves deception and can be 'dolo causante' (causal fraud, inducing a contract, making it voidable) or 'dolo incidente' (incidental fraud, fraud in the performance of an existing obligation, leading to damages). Negligence (culpa) is the failure to exercise diligence, without deliberate intent, and is contextual.
Kinds of Damages (MENTAL)0:21:04
The six kinds of damages are Moral (for physical suffering, mental anguish), Exemplary (corrective, for public good), Nominal (to vindicate a violated right when actual damages can't be proven), Temperate (more than nominal, less than compensatory, for pecuniary loss unquantifiable with certainty), Actual (proved through receipts), and Liquidated (agreed upon by parties in the contract in case of breach). Only one of Actual, Nominal, or Temperate damages can be claimed.
Fraud and Negligence in Obligations - Articles 1171-11730:25:37
Article 1171 states that responsibility for fraud is always demandable, and any waiver of action for future fraud is void. Article 1172 holds that responsibility for negligence is also demandable but may be regulated by courts due to its contextual nature. Article 1173 defines negligence as the omission of diligence required by the obligation's nature and circumstances. Negligence in bad faith is treated as fraud.
Fortuitous Events - Article 11740:29:01
Article 1174 dictates that no one is responsible for unforeseen or inevitable events (fortuitous events or 'acts of God') unless specified by law, stipulation, or the nature of the obligation. Elements include being unforeseen/inevitable, impossible to avoid, rendering fulfillment impossible, and the obligor being free from aggravation. Carnapping, unlike typhoons, is generally not considered a fortuitous event as it can be foreseen and prevented.
Usury, Presumptions of Payment - Articles 1175-11760:33:43
Article 1175 relates to usury laws, which govern interest rates, though current usury laws may be suspended. Article 1176 establishes disputable presumptions regarding payment: receipt of the principal without reservation suggests interest is paid, and receipt of a later installment suggests prior installments are paid. These presumptions can be contradicted by evidence.
Remedies of a Creditor - Article 11770:36:43
Article 1177 outlines three successive remedies for creditors: first, exhaust the debtor's properties through attachment and execution; second, exercise the debtor's rights (Action Subrogatoria) if the first is insufficient; and third, seek rescission of contracts made by the debtor to defraud creditors (Action Pauliana), which requires proving fraudulent intent.
Transmissibility of Rights - Article 11780:40:14
Article 1178 states that all rights acquired by virtue of an obligation are transmissible, meaning they can be transferred, unless prohibited by law or stipulation. This applies to the right to receive the obligation, not necessarily the right to perform it.