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THE LAW ON OBLIGATIONS AND CONTRACTS REVIEWER

INTRODUCTION TO LAWTHE GENERAL NATURE OF LAW

Law- any rule of action or any system of uniformity.

GENERAL DIVISIONS OF LAW

1. Law (in the STRICT LEGAL SENSE)- which ispromulgated and enforced by the state and known asthe state law; and. Law (in the NON-LEGAL SENSE)- which is notpromulgated and enforced by the state and includesdivine law, natural law, moral law and physical law.

SUB!ECTS OF LAW

A. R"#e $% a&ti$n- apply to men as rational beingsonly.

• State law

• Divine law

• Natural law

• Moral law

B. Fi'"atie#* +,eain'-Operates on all things

without regard to the latters use of their will power

and intelligence.• !hysical law

DIVINE LAW• is the law of religion and faith which concerns

itself with the concept of sin "as contrasted withcrime# and salvation.

NATURAL LAW

• divine inspiration in man of the sense of $ustice,fairness, and righteousness, not by divined

revelation or formal promulgation, but byinternal dictates of reason alone.

ORAL LAW• the totality of the norms of good and right

conduct growing out of the collective sense of

right and wrong of every community.

/H0SICAL LAW• there are uniformities of actions and orders of

se%uence which are the physical phenomenathat we sense and feel.

STATE LAW• the law that is promulgated and enforced by the

state.• &lso called positive law, municipal law, civil law,

or imperative law.

CONCE/TS OF STATE LAW1. Genea# Sen+e- the mass of obligatory rulesestablished for the purpose of governing therelations of persons in society.. S,e&i%i& Sen+e- a rule of conduct, $ust,

obligatory, promulgated by legitimate authority, and

of common observance and benefit.

CHARACTERISTICS OF LAW1. R"#e $% &$n"&t- 'aw tells us what shall be doneand what shall not be done. (t takes cogni)ance ofe*ternal acts only.. O2#i'at$*- considered a positive commandimposing a duty to obey and involving a sanction

which forces obedience;

PAGE1 SOCIA,G.A.




3. /$4"#'ate 2* #e'iti4ate a"th$it*- thelegitimate or competent authority is the legislature.+nder the onstitution, law called -statutes.

5. O% &$44$n $2+ean&e an 2ene%it- intendedby man to serve man.

What $e+ #aw $6... it secures $ustice, resolves social conflict, orderssociety, protects interests, control social relations.

SOURCES OF LAW/. onstitution0. 'egislation

1. &dministrative or e*ecutive orders, regulations

and rulings2. 3udicial decisions or $urisprudence4. ustoms5. Other sources such as principles of $ustice ande%uity, decisions of foreign tribunals, opinions of te*twriters, and religion. 6hey are, howeversupplementary, that is, they resorted to by courts inthe absence of all other sources; not binding in

courts.

CONSTITUTION• the fundamental law, supreme law, or highest

law of the land because it is promulgated by

people themselves, binding on all individualciti)ens, all agencies of the government; the

law to which all other laws enacted by the

legislature, as well as administrative or

e*ecutive acts, orders, and regulations havingthe force of law, must conform.

ORGANI7ATION OF COURTS1. Re'"#a C$"t+- ourt of &ppeals, 7egional 6rial

ourts, 7egional ircuit 6rial ourts, Municipal 6rial

ourts, Metropolitan 6rial ourts. S,e&ia# C$"t+8 Sandiganbayan, ourt of 6a*&ppeals3. 8"a+i-9"i&ia# A'en&ie+ - National 'abor7elations ommission, Securities and 9*changeommission, 'and 6ransportation :ranchising and7egulatory oard, and the independent

onstitutional ommissions like OM9'9,

ommission on &udit

AIN CLASSIFICATION OF LAWA. C#a++i%i&ati$n $% Law a+ t$ it+ ,",$+e1. S"2+tantie #aw - that portion of the body of lawcreating and defining rights and duties which may beprivate or public in character; e*ample, law ofobligations and contracts.

. A9e&tie #aw - procedural law or remedial law;that portion of the body of law prescribing themanner or procedure by which rights may be

enforced or their violations redressed.B. C#a++i%i&ati$n $% Law a+ t$ it+ +"29e&t 4atte

1. /"2#i& #aw - the body of legal rules whichregulates the rights and duties arising from therelationship of the state to the people; e*ample,

criminal law, includes international law 8 governs therelations among nations and states, and

PAGE2 SOCIA,G.A.




constitutional law 8governs the relations between thestate and its citi)ens. /iate #aw - the body of rules which regulates

the relations of individuals with one another forpurely private ends; e*ample, civil law, mercantile

law, and civil procedure.

The Law $% O2#i'ati$n+ an C$nta&t+ e%ine• the body of rules which deals with the nature

and sources of obligations and the rights andduties arising from agreements and theparticular contracts; found in 7epublic &ct No.1<5, otherwise known as the ivil ode of the!hilippines. ook (= of the ivil ode deals with

Obligations and ontracts.• (t is based mainly on the ivil ode of Spain

which took effect in the !hilippines on

December >, /<<?. (t was approved as 7epublic&ct No. 1<5 on 3une /<, /?2? and took effect

on &ugust 1@, /?4@.• (t is divided into four books.

Cii# C$e ,$i+i$n+ $n $2#i'ati$n+ an&$nta&t+.

B$$ IV $% the Cii# C$e: deals with obligationsand contracts.

• Tit#e I; Ati&#e+ 11<=-13>5- general

provisions on obligation• Tit#e II; Ati&#e+ 13><-15- contracts

• Tit#e III; Ati&#e+ 153- 153>- newprovisions dealing with natural obligations

TITLE I : OBLIGATIONS( Articles 1156-1304, Civil Code)

CHA/TER 1

GENERAL /ROVISIONS

ARTICLE 11<=. An $2#i'ati$n i+ a 9"ii&a#

ne&e++it* t$ 'ie; t$ $; $ n$t t$ $.

O2#i'ati$n- is derived from the 'atin word -obligatio” which means tying or binding.

• it is a tie or bond recogni)ed by law by virtue

of which one is bound in favor of another torender something 8 and this may consist ingiving a thing, doing a certain act, or not doing

a certain act.

Cii# C$e e%initi$n• merely stresses the duty of the debtor or

obligor "he who has the duty of giving, doing,

or not doing# when it speaks of obligation as a $uridical necessity.

Cii# O2#i'ati$n+• Obligations which give to the creditor or

obligee a right under the law to enforce theirperformance in courts of $ustice.

!URIDICAL NECESSIT0 : in case onnoncompliance, the courts of $ustice may be called

upon by the aggrieved party to enforce its fulfilment

or, in default thereof, the economic value that itrepresents.

PAGE3 SOCIA,G.A.




NATURE OF OBLIGATIONS UNDER THE CIVILCODE.Cii# O2#i'ati$n+- Obligations which give to the

creditor or oblige a right under the law to enforcetheir performance in courts of $ustice.

Nat"a# O2#i'ati$n+- not being based on positive

law but on e%uity and natural law, do not grant aright of action to enforce their performance althoughin case of voluntary fulfilment by the debtor, thelatter may not recover what has been delivered orrendered by reason thereof.

ESSENTIAL RE8UISITES OF AN OBLIGATION

1. A ,a++ie +"29e&t (e2t$ $ $2#i'$) -

person bound to the fulfillment of the obligation; hewho has a duty. An a&tie +"29e&t (&eit$ $% $2#i'ee) - person entitled to demand the fulfillment of theobligation; he who has a right3. O29e&t $ /e+tati$n (+"29e&t 4atte) - theconduct re%uired to be observed by the debtor5. A 9"ii&a# $ #e'a# tie (e%%i&ient &a"+e) - that

which binds or connects the parties to the obligation

FOR OF OBLIGATIONS

& manner in which an obligation is manifested orincurred, it may be oral or in writing or part of each.

/. &s a general rule, the law does not re%uire anyform in obligations arising from contracts for theirvalidity or binding force.

0. Obligations arising from other sources do not haveany form at all.

OBLIGATION; RIGHT; AND WRONGDISTINGUISHED1. O2#i'ati$n is the act or performance which the

law will enforce.. Ri'ht is the power which a person has, under the

law, to demand from anther any prestation.

3. W$n'; also called (n$ury, is an act of omission of one party in violation of the legal right or rights ofanother.

THE ESSENTIAL ELEENTS OF LEGAL WRONGOR IN!UR0 ARE?A. & legal right in favour of a person "creditorA

obligeeA plaintiff#;

B. & correlative legal obligation on the part ofanother "debtorAobligorAdefendant#; to respect ornot to violate said right; andC. &n act or omission by the latter in violation of saidright with resulting in$ury or damage to the former.

@INDS OF OBLIGATION ACCORDING TO THESUB!ECT ATTER.

:rom the viewpoint of the sub$ect matter, obligationmay be either real or personal.

(1) Rea# $2#i'ati$n - obligation to give; is that in

which the sub$ect is a thing which the obligor must

deliver to the obligee.

() /e+$na# $2#i'ati$n - obligation to do or not

to do; is that in which the sub$ect is an act to be

done or not to be done.

PAGE4 SOCIA,G.A.




Thee ae in+ $% ,e+$na# $2#i'ati$n?

a. !ositive personal obligation or obligation to do or

render service.

2. Negative personal obligation is obligation not to

do or not to give.

ART. 11<. O2#i'ati$n+ ai+e %$4?1. Law. C$nta&t+3. 8"a+i-&$nta&t+5. A&t+ $ $4i++i$n ,"ni+he 2* #aw<. 8"a+i-e#i&t+

SOURCES OF OBLIGATIONS1. Law - when they are imposed by law itself.

. C$nta&t+ - when they arise from the stipulationof the parties.

3. 8"a+i-&$nta&t+ - when they arise from lawful,

voluntary and unilateral acts that no one shall beun$ustly enriched or benefitted at the e*pense ofanother.5. Ci4e+ $ a&t+ $ $4i++i$n+ ,"ni+he 2* #aw- when they arise from civil liability which is aconse%uence of a criminal offense.<. 8"a+i-e#i&t+ $ t$t+ - when they arise from

damaged caused to another through an act or

omission.

SOURCES CLASSIFIED./. 6hose emanating from the #aw0. 6hose emanating from ,iate+ a&t+; which

maybe subdivide into the followingBa. 6hose arising from #i&it a&t+; in case of contracts

and %uasi8contracts

b. 6hose arising from i##i&it a&t+; which may beeither punishable in the case delicts or crimes, or notpunishable in the case of %uasi8delicts or torts.

CC&ctually, there are only 0 sourcesB law andcontracts, because obligations arising from %uasi8contracts, delicts, and %uasi8delicts are really

imposed by law.

ART. 11<. O2#i'ati$n+ eie %$4 #aw aen$t ,e+"4e. On#* th$+e e,e++#*ete4ine in thi+ C$e $ in +,e&ia# #aw+ aee4ana2#e; an +ha## 2e e'"#ate 2* the,e&e,t+ $% the #aw whi&h e+ta2#i+he+ the4an a+ t$ what ha+ n$t 2een %$e+een; 2* the,$i+i$n+ $% thi+ B$$. (1>>)

LEGAL OBLIGATIONS.&rticle //5< refers to legal obligations or obligations

arising from law.

ART. 11<. O2#i'ati$n+ ai+in' %$4 &$nta&t+hae the %$&e $% #aw 2etween the &$nta&tin',atie+ an +h$"# 2e &$4,#ie with in '$$

%aith. (1>1a).

PAGE5 SOCIA,G.A.




CONTRACTUAL OBLIGATIONS.• Obligations arising from contracts or voluntary

agreements.• & contract is a meeting of minds between two

persons whereby one binds himself, with

respect of the other, to give something or to

render some service. "&rt. /1@4# Binin' F$&e- Obligations arising from

contracts have the force of law between the

contracting parties; contract cannot be valid if itis against the law.

Re"ie4ent $% a a#i &$nta&t- & contract

is valid if it is not contrary to the law, morals,good customs, public order, and public policy;

contract does not e*ist.

CO/LIANCE IN GOOD FAITH. Means compliance or performance in

accordance with the stipulations or terms of thecontract or agreement.

ART. 11=>. O2#i'ati$n+ eie %$4 "a+i-

&$nta&t+ +ha## 2e +"29e&t t$ the ,$i+i$n+ $%Cha,te 1; tit#e VII $% thi+ B$$.

8UASI-CONTRACTUAL OBLIGATIONS.• is that $uridical relation resulting form lawful,

voluntary, and unilateral acts by virtue of whichthe parties become bound to each other to theend that no one will be un$ustly enriched or

benefitted at the e*pense of another.

@INDS OF 8UASI-CONTRACTS1. Ne'$ti$"4 'e+ti$ - the involuntarymanagement of the property or affairs of another

without the knowledge or consent of the latter.. S$#"ti$n ine2iti - the $uridical relation which is

created when something is received when there is no

right to demand it and it was unduly deliveredthrough mistake.

The e"i+ite+ ae?a. 6here is no right to receive the thing delivered.b. 6he thing was delivered through mistake.

ART. 11=1. Cii# $2#i'ati$n+ ai+in' %$4

&i4ina# $%%en+e+ +ha## 2e '$ene 2* the,ena# #aw+; +"29e&t t$ the ,$i+i$n+ $% ati&#e1; an $% the ,etinent ,$i+i$n+ $%Cha,te ; /e#i4ina* Tit#e; $n H"4anRe#ati$n+; an $% Tit#e VIII $% thi+ B$$;e'"#atin' a4a'e+. (1>a).

CIVIL LIABILIT0 ARISING FRO CRIES OR

DELICTS.• &rising from crimes or delicts.

• (s governed by the 7evised !enal ode and the

ivil ode. "&rt. //50#

SCO/E OF CIVIL LIABILIT0.1. Re+tit"ti$n

. Re,aati$n %$ the a4a'e &a"+e an

3. Ine4ni%i&ati$n %$ &$n+e"entia# a4a'e+.

PAGE6 SOCIA,G.A.




OBLIGATIONS ARASING FRO 8UASI-DELICTS. &risng from %uasi8delicts or torts. "&rt. 0/>5 to

0/?2# (s an act or omission by a person "tortfeasor#

which causes damage to another in his person,

property, or rights giving rise to an obligation to

pay for the damage done, there being fault ornegligence but there is no pre8e*istingcontractual relation between parties.

RE8UISITIES OF 8UASI-DELICT.1. 6here must be an act or omission;. 6here must be fault or negligence;3. 6here must be damage caused;

5. 6here must be a direct relation or connection ofcause and effect between the act or omission andthe damage; and

<. 6here is no pre8e*isting contractual relationbetween the parties.

DELICTS 8UASI-DELICTS

Does not necessarily cause

a4a'e

&ll kinds of %uasi8delict

cause a4a'e...

&s long as the act is,"ni+ha2#e by law, then

the act is a delictAcrime.

but none is ,"ni+ha2#eby law

May not necessarily be

based on %a"#t or

ne'#i'en&e.

ased on %a"#t or

ne'#i'en&e.

CONTRACTS OTHER SOURCES

Obligation is provided by

the &$nta&t itself.

Obligation is provided by

#aw.7e%uires the &$n&"en&e Does n$t re%uire the

of both parties. &$n&"en&e of both

parties.

ased on what was a'ee

",$n by the parties.

ased on what was

provided by #aw+.

CHA/TER

NATURE AND EFFECT OF OBLIGATIONS

ART. 11=3. Ee* ,e+$n $2#i'e t$ 'ie+$4ethin' i+ a#+$ $2#i'e t$ tae &ae $% it withthe ,$,e i#i'en&e $% a '$$ %athe $% a%a4i#*; "n#e++ the #aw $ the +ti,"#ati$n $% the,atie+ e"ie+ an$the +tana $% &ae.(1>5a).

S/ECIFIC OR DETERINATE THING.• !articularly designated or physically segregated

others of the same class.

GENERIC OR INDETERINATE THING.• Ehen it refers only to a class or genus to which

it pertains and cannot be pointed out with

particularity.

S/ECIFIC GENERIC

by its individuality only by specie

6he debtor cannot

substitute it with another

although the latter is of the

same kind and %uality

without the consent of the

creditor. "&rt. /022#

6he debtor can give

anything of the same class

as long as it is of the same

kind.

PAGE7 SOCIA,G.A.




D"tie+ $% e2t$ in $2#i'ati$n t$ 'ie aete4inate thin'6hey areB

(1) /e+ee the thin'. (n obligation to give "realobligations#, the obligor has the incidental duty to

take care of the thing due with the diligence of a

good father of a family pending delivery.• Di#i'en&e $% a '$$ %athe $% a %a4i#*.

9%uated with ordinary care or that diligencewhich an average "a reasonably prudent#person e*ercises over his own property.

• An$the +tana $% &ae.

6he stipulation of the parties provides foranother standard of care "slight or

e*traordinary diligence#, said law or stipulationmust prevail.

• Fa&t$+ t$ 2e &$n+iee.

&s a general rule, the debtor is not liable if hisfailure to preserve the thing is not due to his

fault or negligence but to fortuitous events orforce majeure.

If Generic:

/. 6o deliver the thing of the same class but ofneither inferior nor superior %uality.

0. (f the thing is lost due to fortuitous event ordue to his "the obligor# own fault, to look for

another item of the same class elsewhere anddeliver the same to the creditor.

If Determinate:

/. 6o tae &ae of the thing with the i#i'en&e $%

a '$$ %athe $% a %a4i#*. Fowever, if theresa hi'he +tana $% &ae e*pressly stated bythe provisions of law or e*pressly stipulated bythe contract, that higher standard of care

should be followed.0. 6o deliver the thing.

1. 6o deliver the %"it+ of the thing from themoment the obligation to deliver arises.

:ruits are those that the thing has given e*istence

to. Normally, the delivery of these is included as

obligation from the moment the obligation to

deliver the prestation arises.

PAGE8 SOCIA,G.A.




When $e+ the 4$4ent the $2#i'ati$n t$

e#ie ai+e6

(t depends upon the kind of obligationB

(n obligations with$"t a &$niti$n $ a ,ei$,

this moment arises at the ,e%e&ti$n $% the

&$nta&t. "!+79 obligation#

(n obligations with a ,ei$, this moment arises$n the ate $% "e.

(n obligations with a +"+,en+ie &$niti$n, this

moment arises at the 4$4ent the &$niti$n

$&&"+.

(n obligations with a e+$#"t$* &$niti$n, this

moment arises at the ,e%e&ti$n $% the

&$nta&t.

2. 6o deliver the accessions and accessories evenif they have not been mentioned.

&ccessions G these are improvements of the thing.

&ccessories G those $oined to or included with the

principal for the latters completion, better use,

perfection or en$oyment.

Ri'ht+ $% the Ceit$

If the restation is a Generic !hin":

/. Fe may ask for performance of the obligation.

0. Fe may possess anything within the same classat the e*pense of the debtor.

1. Fe may demand damages.

If the restation is a Determinate !hin":

/. Fe may compel the debtor to deliver the thing.

Nobody else is in possession of the same thingin this entire world.

0. Fe may demand damages.

PAGE9 SOCIA,G.A.




If the restation is a #ervice$Act:

(n all cases, the debtor cannot be compelled to do

the act for this would violate his right against

involuntary servitude. Fowever, the creditor can still

have the following remedies depending on the

following casesB

a. (f the debtor fails to perform or if he did perform

but in contravention of the tenor 8

/. 6he creditor may perform the act or may asksomebody else to perform the act at thee*pense of the debtor.

0. 6he creditor may demand damages.

b. (f the debtor performs the obligation poorly G

/. 6he creditor may have the same be undone atthe e*pense of the debtor.

0. 6he creditor may demand damages.

If the restation is a #ervice$Act that is

%or&idden:

/. 6he creditor may demand the debtor what has

been done be undone at the e*pense of thedebtor.0. 6he creditor may demand damages.

#'ea(in" of Dama"es, hat is it* Damages refers

to the harm done and the compensation that can be

received by the offended party as a result of such

harm.

+hat are the "ronds for lia&ilit to 'a

Dama"es* 6hese are Fa", Ne'#i'en&e, De#a*,

and C$ntaenti$n $% the ten$ $% the

$2#i'ati$n.

De#a* G this is the non8fulfillment of the obligationbeyond the due date.

@in+ $% De#a*

/. Mora Solvendi G delay on the part of thedebtor "delay in fulfilling the obligation#

PAGE10 SOCIA,G.A.




0. Mora &ccipiendi G delay on the part of thecreditor. 6his happens when on the duedate, the creditor refuses to accept the

prestation due without any $ustifiablereason.

1. ompensation Morae G delay in reciprocal

obligations; i.e., both parties are indefault. Fere, it is as if there is n$ delay.

Re"i+ite+ $% De#a*

/. Due date has arrived.

0. 6he creditor has already e4ane performance of the obligation.

1. 6he debtor does not perform the obligationeven after the creditor has already demanded.

Eithout creditors e4an, theres no e#a*.

Fowever, there are instances when demand is no

longer necessary for the delay to e*ist. 6hese are thefollowingB

/. Ehen the law so provides.0. Ehen the obligation e*pressly so declares

"depends upon the agreement of both parties#.1. Ehen time is of the essence.

2. Ehen out of the fault of the debtor, the demandhas become useless "such as when theprestation is lost#.

4. (n reciprocal obligations where the obligationsarise from the same cause and the date of due

is the same between parties, once one of the

parties fulfills his obligation, the other partyautomatically incurs delay without the need fordemand.

(n an obligation not to do, there is never a delay for

one cannot be in delay for not doing something.

E%%e&t+ $% De#a*

/. 6he offending party shall be liable for damages.0. (f the prestation is a determinate thing and a

fortuitous event caused the debtor to lose thething, he shall be liable for the amount of thething.

What ha,,en+ t$ the $2#i'ati$n i% a %$t"it$"+

eent tae+ ,#a&e an &a"+e+ the #$++ $% the

,e+tati$n6 &s stated earlier, the answer would

depend on whether the prestation is a determinate

thing or a generic thing. (f generic, the obligation

PAGE11 SOCIA,G.A.




subsists. (f determinate, the obligation is generally

e*tinguished e&e,t in the following casesB

/. Ehen the law e*pressly provides. 9*ampleB

under &rt. //54 of the ivil ode, the debtorwould still be liable if he has incurred a delay orhas promised himself to deliver the thing to twopersons of different interests.

0. Ehen the parties have agreed to declareliability even in case of fortuitous event.

1. Ehen the nature of obligation re%uires theassumption of risk. 9*ampleB the liability of aninsurer in case of a loss. +nlike any otherobligation, the liability of an insurer is e*actlythe oppositeB it arises after a fortuitous eventoccurs.

Re4eie+ Aai#a2#e t$ Ceit$+ t$ En%$&e the

O2#i'ati$n

(n the event of breach of obligation, the creditor has

the following remediesB

/. /"+"e the e2t$+ ,$,etie+ e&e,tth$+e ee4,t 2* #aw. 6his is usually done

through atta&hin' the properties. (f the courthas decided in favor of the creditor, the court

may order that the properties belonging to thedebtor be sold and the proceeds thereof beapplied as payment of his obligation.

0. Ee&i+e the i'ht+ 2e#$n'in' t$ the e2t$

e&e,t th$+e ,e+$na##* 2e#$n'in' t$ hi4.accion s&ro"atoria). (n case the debtor hashis own debtor in another obligation, the

creditor may file a court action directing thedebtors debtor to pay the creditor. (n effect,

the creditor is e*ercising the right to collectfrom the debtors debtor which is a right thatbelongs to the debtor.

1. I4,"'n the a&t+ 4ae 2* the e2t$ that

4a* hae 2een $ne t$ e%a" hi+&eit$+ .accion 'aliana). (n cases where

the determinate thing is sold by the debtortowards another person, the creditor may askthe court to rescind the sale made by thedebtor.

Fa" is the $#"nta* ee&"ti$n of a w$n'%"#

a&t, or a wi##%"# $4i++i$n, knowing and intenin'

the effects which will arise from such act or

omission.

@in+ $% Fa"

PAGE12 SOCIA,G.A.




&ccording to meaning/. Fa" in $2tainin' &$n+ent G this kind of

fraud has an effect on the validity of thecontract as this occurs 2e%$e an "in' the

formulation of &$nta&t. 6he remediesavailable to the offended party would depend if the fraud is causal or incidental.

a. Ca"+a# Fa" or D$#$ Ca"+ante : frauddone that without it, consent w$"#e

n$t been given. 6his renders the contractvoidable.

b. In&ienta# Fa" or D$#$ In&iente :fraud done that without it, the creditorwouldve agreed in different terms. 6hecontract remains valid but the partyoffended is entitled to damages.

0. Fa" in the ,e%$4an&e $% the$2#i'ati$n G the deliberate or intentionalevasion by the debtor of the fulfillment of his

obligation in a normal manner. 6his type offraud does not affect the validity of the

contract.b. &ccording to time of commission

/. F"t"e Fa". (f the two parties agreed to

waive an action on future fraud, such waiver is

considered void because permitting such advance

renunciations would practically leave the obligation

without effect. 6hus, the debtor will still be liable

for damages if he commits fraud in the

performance of his obligation despite the waiver.

0. /a+t Fa". (f the two parties agreed to waive

an action on past fraud, such waiver may be

considered valid. 6his can be validly renounced

because it is deemed an a&t $% 'ene$+it* of the

creditor. Ehat is renounced is the effect of fraud,

particularly the i'ht t$ ine4nit*. 6his is an act

of liberality on the part of the creditor.

Ne'#i'en&e (C"#,a) G this is the $4i++i$n of the

i#i'en&e e"ie by the nature of the obligation"as stated by law or stipulated in the contract# and

corresponds with the circumstances of the person,

time, and of the place.

(f neither the law nor the contract state the standard

of care that is needed while the thing is in the handsof the debtor, the debtor must observe the diligence

of a good father of a family.

@in+ $% Ne'#i'en&e

PAGE13 SOCIA,G.A.




/. C"#,a C$nta&t"a# (&$nta&t"a# ne'#i'en&e) G

this is the omission of the diligence re%uired by the

contract.

0. C"#,a A"i#iana (&ii# ne'#i'en&et$t"a+i-

e#i&t&"#,a eta-&$nta&t"a#) G these are

omissions that cause in$ury to another, there beingno e*isting contractual relationship between the

parties.

1. C"#,a Ci4ina# (&i4ina# ne'#i'en&e) G this is

an omission that is punishable by law. 6his is a crime

known as Re&#e++ I4,"en&e.

Di+tin&ti$n 2etween Fa" an Ne'#i'en&e G the

element of intention to cause damage is present in

:raud but is absent in Negligence.

PAGE14 SOCIA,G.A.

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