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SECTION 2 LOSS OF THE THING DUE

(Arts. 1262-1269)

STUDY GUIDE :

1. %hen is & thing consi'ere' lost [Art. 1189(2)]

A thing is consi'ere' lost )hen it *

(a) +erishes

(b) goes out of co--erce

(c) 'is&++e&rs in such & )& th&t itse/istence is un0no)n or

(d) 'is&++e&rs in such & )& th&t it c&n nolonger 1e recoere'.

2. As a general rule,)hen the o1lig&tion is to 'elier & s+ecific or 'eter-in&te thing, ifthe thing is lost or 'estroe' )ithout the f&ult of the 'e1tor, or 1 re&son of &fortuitous eent, the o1lig&tion is e/tinguishe' &n' the 'e1tor )ill 1e rele&se' fro-&n li&1ilit to the cre'itor. (Art. 1262, par. 1; Art. 1174)

3. Enu-er&te the c&ses )hen the 'e1tor is still li&1le 'es+ite the loss of the thing 'ue *

(a) %hen the s+ecific or 'eter-in&te thing is lost or 'estroe' 'ue to his f&ult, the'e1tor sh&ll 1e li&1le for '&-&ges. (Art. 1262, par. 1; Art. 1170)

(b) %hen the 'eter-in&te thing is lost or 'estroe' &fter he h&s incurre' in 'el&,the 'e1tor sh&ll &lso 1e li&1le for '&-&ges. (Art. 1262, par. 1; Art. 1165, par.3; Art. 1170)

(c) %hen, 1 l&) or sti+ul&tion, he is li&1le een for fortuitous eents.(Art. 1262, par. 2; Art. 1174)

(d) %hen the n&ture of the o1lig&tion re3uires the &ssu-+tion of ris0.(Art. 1262, par. 2; Art. 1174)

(e) %hen the o1lig&tion to 'elier the 'eter-in&te thing &rises fro- & cri-e (e.g.,theft$, unless the loss occurs &fter the cre'itor refuse' to &cce+t the thing)ithout 4ustific&tion. (Art. 1268)

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(f) %hen the generic or in'eter-in&te thing o14ect of the o1lig&tion is lost or'estroe', the o1lig&tion is not e/tinguishe' un'er the +rinci+le genus neverperishes. (Art. 1263) The 'e1tor is still o1lige' to 'elier & thing of the s&-e0in'. The cre'itor, ho)eer, c&nnot 'e-&n' & thing of su+erior 3u&lit, &n'

neither c&n the 'e1tor 'elier & thing of inferior 3u&lit. (Art. 1246)

4. %h&t is +&rti&l loss

(a) In & s+ecific re&l o1lig&tion, there is +&rti&l loss )hen onl & +ortion of the thingis lost or 'estroe', or )hen it suffers 'e+reci&tion or 'eterior&tion. (E/&-+le*%hen +ortion of the 1o' of & c&r is s-&she', &n' nee's re+&ir &n' re+&inting,there is 'e+reci&tion of the c&r or +&rti&l loss of the thing.$

(b) In & +erson&l o1lig&tion, there is +&rti&l loss )hen *

(b.1.) the +rest&tion h&s 1eco-e leg&ll &n' +hsic&ll i-+ossi1le. (Art. 1266)

(b.2.) the +rest&tion h&s 1eco-e -or&ll i-+ossi1le or i-+r&ctic&1le, 'ue toch&nge of cert&in con'itions. (Art. 1267)

5. %hen is +&rti&l loss consi'ere' &s tot&l loss &s to e/tinguish the 'e1tor5s o1lig&tion

In & re&l o1lig&tion, the +&rti&l loss of the thing -& 1e consi'ere' &s & tot&l

loss if the loss is so -&teri&l th&t the re-&ining +ortion of the o14ect is ren'ere'insignific&nt or i--&teri&l. In such & c&se, the 'e1tor )ill 1e rele&se' fro- li&1ilit, &n'his o1lig&tion e/tinguishe'. (Art. 1264) This is, of course, su14ect to the gener&l3u&lific&tion th&t the loss )&s not 'ue to the f&ult of the 'e1tor. (Arts. 1170 & 1174)(E/&-+le* The c&r )&s )rec0e' in &n &cci'ent. The tires, c&r se&ts, &n' stirring )heel&re &ll th&t re-&in of the c&r. Here, )hile there is onl +&rti&l loss 1ec&use -&n +&rts)ere still recoere', the s&-e is 'ee-e' e3ui&lent to tot&l loss of the o14ect of theo1lig&tion.$

In & +erson&l o1lig&tion, the e3ui&lent +roisions &re Arts. 1266 an 1267. It

is, ho)eer, i-+er&tie th&t in or'er th&t the o1lig&tion of the 'e1tor -& 1e e/tinguishe',the i-+ossi1ilit (Art. 1266) or i-+r&ctic&1ilit (Art. 1267) of the +erfor-&nce of the+rest&tion shoul' *

(a) t&0e +l&ce &fter the est&1lish-ent of the o1lig&tion &n'

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(b) 1e )ithout f&ult on the +&rt of the 'e1tor.

6. %h&t is the +resu-+tion )hen the thing 'ue is lost )hile in the +ossession of the'e1tor %hen )ill the +resu-+tion not &++l

%hen the thing 'ue is lost )hile in the custo' of the 'e1tor, the 'is+ut&1le

+resu-+tion &rises th&t the loss )&s 'ue to the 'e1tor5s f&ult. This +resu-+tion,ho)eer, )ill not &++l if the loss occurre' 'uring & n&tur&l c&l&-it. (Art. 1265)

APPLICATION/PROBLEMS:

1. 6n 7&nu&r 8, 292, Arthur le&se' his 299 s3u&re"-eter lot loc&te' in S&nP&1lo Cit to Ir)in. It )&s &gree' u+on 1 the +&rties th&t Ir)in )&s to use the lot for his+oultr f&r- for & +erio' of t)o e&rs or until 7&nu&r :, 29:. The -onthl rent&l &gree'u+on )&s P29,999. The +&rties5 le&se contr&ct &lso +roi'e' for & +en&l cl&use )hichsti+ul&te' th&t shoul' Ir)in ter-in&te the contr&ct 1efore the ter- +roi'e' in the le&se,Ir)in )ill 1e li&1le for '&-&ges e3ui&lent to &ll un+&i' rent&ls until 7&nu&r :, 29:. 6n;e1ru&r , 292, the Cit Council of S&n P&1lo +&sse' &n or'in&nce recl&ssifing thele&se' lot fro- co--erci&l to +urel resi'enti&l. The or'in&nce )&s to t&0e effect on 7ul, 292. Hence, on

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(b) Assu-e th&t on