LAW OF OBLIGATION AND CONTRACTS

Activities for week 5 to 6

Chapter 2 (Article 1169 to 1178)
Answer the following questions.
1.Making anything happen more slowly than usual
2. Mora solvendi – default on the part of the debtor/obligor
a. Ex re – default in real obligations (to give)
b. Ex personae – default in personal obligations (to do)
Mora accipient – default on the part of the creditor/obligee
Compensation morae – default on the part of both the debtor and creditor
in reciprocal obligations
3. There are three conditions that must be present before mora solvendi can
exist or its effects arise:
(1) failure of the debtor to perform his (positive) obligation on
the date agreed upon;

(2) Demand (not mere reminder or notice) made by the creditor upon
the debtor to fulfil, perform, or comply with his obligation which demand,
may be either judicial (when a complaint is filed in court) or extra-judicial
(when made outside of court, orally or in writing); and
(3) Failure of the debtor to comply with such demand.
4. *Mora Solvendi – the following are the effects:
a. The debtor is guilty of breach of the obligation;
b. He is liable for interest in case of obligations to pay money (Art. 2209)
or damages in other obligations. (Art. 1170.) In the absence of extrajudicial
demand, the interest shall commence from the filing of the complaint; and
c. He is liable even for a fortuitous event when the obligation is to deliver a
determinate thing. (Art 1165, 1170). However, if the debtor can prove that
the loss would have been resulted just the same even if he had not been in
default, the court may equitably mitigate the damages
In an obligation to deliver a generic thing, the debtor is not relieved from
liability for loss due to a fortuitous event. He can still be compelled to deliver
a thing of the same kind or held liable for damages.
*Mora Accipiendi – the effect are as follows
a. The creditor is guilty of breach of obligation;
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 time of the creditor’s delay and
e. The debtor may release himself from the obligation by the
consignation of the thing or sum due.
*Compensation morae – the delay of the obligor cancels out the effects of
the delay of the obligee and vice versa. The net result is that there is no
actionable default on the part of both parties, such that as if neither one is
guilty of delay. If the delay of one party is followed by that of the other,
the liability of the first infract or shall be equitably tempered or balanced by
the courts. If it cannot be determined which of the parties is guilty of delay,
the contract shall be deemed extinguished and each shall bear his own
damages.
5.
1. Fraud
2. Negligence
3. Delay
4. Contradiction of the tenor of the obligation (art. 1170)
6. A breach of contract occurs when two or more people enter into an
agreement, and at least one party does not fulfill their part of the contract by
failing to meet the contract terms without a legal excuse.
7. Tax fraud is the deliberate misbehavior committed by a taxpayer in an
effort to evade paying a tax they are aware they owe. If convicted, anyone
found guilty of fraud might face fines of tens of thousands of dollars as well
as prison time. While on the other hand an unintended error committed by a
taxpayer is considered negligence. Most of these blunders happen when
taxpayers do their own tax calculations. Math calculations, credits, and
deductions are frequent blunders. The erroneous name or social security
number are examples of other mistakes. Errors of this nature are not
typically regarded as fraudulent. However, the taxpayer may incur additional
interest and penalties if these mistakes increase the amount of taxes
payable.
8. Article 1171. Responsibility arising from fraud is demandable in all
obligations. Any waiver of an action for future fraud is void. Article 1172.
Responsibility arising from negligence in the performance of every kind of
obligations is also demandable, but such liability may be regulated by the
courts, according to the circumstances.
9. GROSS NEGLIGENCE
Gross Negligence is the most serious form of negligence and is the term
most often used in medical malpractice cases. These cases are highlighted
by reckless behavior that a reasonable person would not commit.

An example could be a home care nurse not providing a patient with food or
water for several days.

CONTRIBUTORY NEGLIGENCE

Contributory negligence is when a person isn’t 100% at fault for a crime, but
did contribute in some way. An example is someone texting and driving that
gets into an accident with another driving that made an illegal turn.

COMPARATIVE NEGLIGENCE
Comparative negligence is when a party is partially responsible for the harm
they’ve experienced. In these situations, even being 1% responsible may
make the person unable to receive compensation. Maryland is one of only
four states where contributory negligence is practiced.

An example could be someone injuring themselves on a wet floor, even

though there was a wet floor sign present. In this scenario, the injured
person is usually deemed responsible for knowing their surroundings and
isn’t due any damages.

VICARIOUS NEGLIGENCE
Vicarious Negligence is when someone is indirectly responsible. The most
common example is a dog bite. Though the person themselves did not injure
someone, their dog did, and thus they are responsible to cover any injuries
caused by their dog.

10. Culpa contractual. Culpa Contractual, as governed by the Civil Code

provisions on Obligations and Contracts particularly Articles 1170 to
1174, refers to those, who in the performance of the obligation are guilty of
fraud, negligence, or delay, are liable for damages. Quasi-delict or Culpa
Aquiliana, as principally expressed in Article2176 of the Civil Code, refers to
the act or omission of whoever causes damage to another, there being
fault or negligence, becomes obliged to pay for the damage done even if
there is more-existing contractual relation between the parties.

11. Financial Due Diligence

Legal Due Diligence
Tax Due Diligence
Operational Due Diligence
Intellectual Property Due Diligence
Commercial Due Diligence
Information Technology Due Diligence
HR due diligence
Regulatory Due Diligence
Environmental Due Diligence
12. An event of natural or human origin that could not have been reasonably
foreseen or expected and is out of the control of the persons concerned (as
parties to a contract) : force majeure.
13. The party affected by Force Majeure is usually obligated to provide
prompt written notice to the counterparty of the occurrence of the Force
Majeure event (in reasonable detail) and the expected duration of the
event’s effect on the party. an event of natural or human origin that could
not have been reasonably foreseen or expected and is out of the control of
the persons concerned (as parties to a contract): force majeure. called also
cas fortuit. see also frustration compare inevitable accident.