Damages. Article 1170.

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. (1101) Article 1165. If the obligor delays, or
has promised to deliver the same thing to two or more persons who
do not have the same interest, he shall be responsible for any
fortuitous event until he has effected the delivery.

i. Kinds of Damages (MENTAL)

1. Moral. Article 2217. Moral damages include physical suffering,
mental anguish, fright, serious anxiety, besmirched reputation,
wounded feelings, moral shock, social humiliation, and similar
injury. Though incapable of pecuniary computation, moral damages
may be recovered if they are the proximate result of the
defendant's wrongful act for omission. Article 2219. Moral
damages may be recovered in the following and analogous cases:
(1) A criminal offense resulting in physical injuries; (2) Quasi-delicts
causing physical injuries; (3) Seduction, abduction, rape, or other
lascivious acts; (4) Adultery or concubinage; (5) Illegal or arbitrary
detention or arrest; (6) Illegal search; (7) Libel, slander or any
other form of defamation; (8) Malicious prosecution;(9) Acts
mentioned in article 309;(10) Acts and actions referred to in
articles 21, 26, 27, 28, 29, 30, 32, 34, and 35.The parents of the
female seduced, abducted, raped, or abused, referred to in No. 3 of
this article, may also recover moral damages.The spouse,
descendants, ascendants, and brothers and sisters may bring the
action mentioned in No. 9 of this article, in the order named.

Article 2220. Willful injury to property may be a

legal ground for awarding moral damages if the court
should find that, under the circumstances, such
damages are justly due. The same rule applies
to breaches of contract where the defendant
acted fraudulently or in bad faith. General Rule, not
recoverable in breaches of contract.

2. Exemplary. Article 2229. Exemplary or corrective damages are

imposed, by way of example or correction for the public good, in
addition to the moral, temperate, liquidated or compensatory
damages.
3. Nominal. Article 2221. Nominal damages are adjudicated in
order that a right of the plaintiff, which has been violated or
invaded by the defendant, may be vindicated or recognized, and not
for the purpose of indemnifying the plaintiff for any loss suffered by
him. When no other kind of damages may be recovered.
a. Cannot co-exist with compensatory damages and exemplary.
b. Nominal and temperate cannot be awarded at the same time.

4. Temperate. Article 2224. Temperate or moderate damages,

which are more than nominal but less than compensatory damages,
may be recovered when the court finds that some pecuniary loss
has been suffered but its amount cannot, from the nature of the
case, be provided with certainty.

5. Actual. Pecuniary losses suffered and duly proved by the

plaintiff. This is the only type of damage that would require proof.

a. Article 2201. In contracts and quasi-contracts, the damages for

which the obligor who acted in good faith is liable shall be those
that are the natural and probable consequences of the breach of
the obligation, and which the parties have foreseen or could have
reasonably foreseen at the time the obligation was constituted.
In case of fraud, bad faith, malice or wanton
attitude, the obligor shall be responsible for all
damages which may be reasonably attributed to the
non-performance of the obligation. (1107a)

b. Article 2202. In crimes and quasi-delicts, the defendant shall be

liable for all damages which are the natural and probable
consequences of the act or omission complained of. It is not
necessary that such damages have been foreseen or could have
reasonably been foreseen by the defendant.

i. Death Indemnity (P50,000) - separate and distinct from other

forms of indemnity for damages and is automatically awarded
without need of further proof other than the fact of death and the
responsibility of the accused therefor.
ii. Loss of earning capacity - he indemnity for the deceased’s lost
earning capacity is meant to compensate the heirs for the income
they would have received had the deceased continued to live.
iii. Support -
iv. Moral Damages - But only the spouse, legitimate and
illegitimate descendants and ascendants of the deceased may
demand moral damages for mental anguish by reason of the death
of the deceased. Brothers and sisters and other collateral blood
relatives are not included among the persons entitled to recover
moral damages for mental anguish by reason of the death of the
deceased.

6. Liquidated. Article 2226. Liquidated damages are those

agreed upon by the parties to a contract, to be paid in case of
breach thereof.

ii. Specific Circumstances affecting obligations in general

1. Fraud. Article 1171. Responsibility arising

from fraud is demandable in all obligations. Any waiver of an action
for future fraud is void. Why? Contrary to law and public policy for
such will encourage the commission of crime(1102a) liability for
past fraud may be waived provided public interests are not
involved. However, if the past fraud involves a public crime,
the waiver of civil damages made by the private complainant in
favor of the defendant will not bar the state from continuing the
prosecution of criminal case. What is public crime?

a. Dolo causante (causal fraud) – fraud in obtaining

consent/applicable only to obligations where consent is necessary
such as contract affecting the validity thereof making it
voidable. Article 1338. There is fraud when, through insidious
words or machinations of one of the contracting parties, the other
is induced to enter into a contract which, without them, he would
not have agreed to. (1269) what is the remedy of the party whose
consent was obtained through fraud? Annulment.
b. Dolo incidente (incidental fraud) – the deliberate and intentional
evasion of the normal fulfillment of the obligation. what is the
proper remedy? Action for damages. Why not annulment? Because
the contract is valid.

2. Negligence. Article 1173. The fault or negligence of the

obligor consists in the omission of that diligence which is required
by the nature of the obligationand corresponds with
the circumstances of the persons, 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 diligencewhich is to be observed in the performance, that
which is expected of a good father of a family shall be required.
(1104a) 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. (1103)

a. What is negligence? 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.
b. What are factors to be considered?
i. nature of the obligation
ii. circumstances of the persons
iii. circumstances of time
iv. circumstances of the place
c. Degree of care required
i. Required by law; or
1. Contract of common carrier – extraordinary diligence
2. Contract of necessary deposit – extraordinary diligence
3. Banks - extraordinary diligence
ii. Agreed upon by the parties. Orally or in writing;
iii. In the absence of the two above, diligence of a good father of a
family.
d. Kinds of Negligence as to SOURCE
Culpa Contractual Culpa Aquiliana Culpa Criminal

Negligence is merely Negligence is direct, Negligence is

incidental to the substantive, and direct, substantive,
performance of an independent and independent
obligation arising from
contract

Pre-existing contractual No Pre-existing No Pre-existing

relations contractual relations contractual
relations

Defense of a good father of a Defense of a good Not a proper

family in the selection and father of a family in defense.
supervision of employees the selection and Employee’s guilt is
is not a proper complete supervision of automatically the
defense. Though this may employees is a employer’s civil
mitigate. MASTER AND proper complete guilt, if the former
SERVANT RULE defense. is insolvent.
When the contract is not Ordinarily, the victim Presumption of
carried out, it is presumed has to prove the innocence,
that the debtor is negligent, negligence of the prosecution has the
and it is his duty to prove defendant. burden of proving
otherwise the negligence of
the accused

Preponderance of evidence Preponderance of Guilt beyond

evidence reasonable doubt

e. Negligence on the part of the supposed creditor/injured party

i. If his negligence was the immediate and proximate cause – no
recovery of damages
ii. If his negligence was only contributory – may still recover
damages, but the courts can mitigate or reduce the same
f. Fraud distinguished from Negligence
Fraud Negligence

Deliberate intention to Although voluntary, still there is no deliberate

cause damage intention to cause damage

Liability arising from Liability may be mitigated in certain

dolo cannot be mitigated cases. Discretion of the court to fix amount of
or reduced by the courts damages.
Damages where both parties are mutually
negligent, the fault of one may cancel or
neutralize the negligence of the other (in pari
delicto)

Waiver of an action to Waiver of an action to enforce liability due to

enforce liability due to future culpa may in a certain sense be
future fraud is void allowed
Except where the nature of the obligation
requires the exercise of extraordinary
diligence

3. Delay. 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. There is no
delay in obligation not to do.
However, the demand by the creditor shall not be
necessary in order that delay may exist:
(1) When the obligation or the lawexpressly 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.
In reciprocal obligations, neither party incurs in delay if
the other does not comply or is not ready to comply in a
proper manner with what is incumbent upon him. From
the moment one of the parties fulfills his obligation,
delay by the other begins. (1100a)
a. Meaning of delay
i. Ordinary delay – merely failure to perform an obligation on time
ii. Legal delay – failure to perform an obligation which failure
constitutes a breach of the obligation
b. To put a debtor in default, demand is needed.
i. Exceptions:
1. When stipulated.
2. When the law so declares.
a. Article 1786. Every partner is a debtor of the partnership for
whatever he may have promised to contribute thereto.
He shall also be liable for the fruits
thereof from the time they should have
been delivered, without the need of any
demand. (1681a)
3. 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
4. When demand would be useless
5. In reciprocal obligations
c. Kinds of Delay
i. Mora Solvendi – delay on the part of the debtor
1. Effects:
a. The debtor becomes liable for damages; The debtor becomes
liable for the interest
i. Article 2209. If the obligation consists in the payment of a sum
of money, and the debtor incurs in delay, the indemnity for
damages, there being no stipulation to the contrary, shall be
the payment of the interestagreed upon, and in the absence of
stipulation, the legal interest, which is six per cent per annum.
(1108)
ii. Article 1170. Those who in the performance of their
obligationsare guilty of fraud, negligence, or delay, and those who
in any manner contravene the tenor thereof, are liable for damages.
(1101)
b. when it has for its object a determinate thing, the delay or
default places the risk of loss on the debtor. Liable for fortuitous
events
i. Article 1165. If the obligor delays, or has promised to deliver the
same thing to two or more persons who do not have the same
interest, he shall be responsible for any fortuitous event until he
has effected the delivery. (1096)
ii. Article 2215. In contracts, quasi-contracts, and quasi-delicts,
the court may equitably mitigate the damages under circumstances
other than the case referred to in the preceding article, as in the
following instances: (4) That the loss would have resulted in any
event;
iii. Article 1263.In an obligation to deliver a generic thing, the loss
or destruction of anything of the same kind does not extinguish the
obligation. (n) Article 1170. Those who in the performance of their
obligationsare guilty of fraud, negligence, or delay, and those who
in any manner contravene the tenor thereof, are liable for
damages. He can still be compelled to deliver a thing of the same
kind or held liable for damages.
2. Requisites:
a. Failure of the debtor to perform his positive obligation on the
date agreed upon;
b. Judicial or extrajudicial demand. What is the difference between
judicial or extrajudicial demand?
c. Failure of the debtor to comply with such demand
ii. Mora Accipiendi – delay on the part of the creditor
1. Effects:
a. The creditor becomes liable for damages
b. The debtor may relieve himself of the obligation by the
consignation of the thing after a valid tender of payment
c. The creditor bears the risk of the loss of the determinate thing
i. Article 1256. If the creditor to whom tender of payment has
been made refuses without just cause to accept it, the debtor shall
be released from responsibility by the consignation of the thing or
sum due.
Consignation alone shall produce the
same effect in the following cases:
 (1) When the creditor is absent or
unknown, or does not appear at the
place of payment;
(2) When he is incapacitated to
receive the payment at the time it is
due;
(3) When, without just cause, he
refuses to give a receipt;
(4) When two or more persons claim
the same right to collect;
(5) When the title of the obligation
has been lost. (1176a)
d. The responsibility of the debtor for the loss of the determinate
thing is reduced and limited to fraud and gross negligence.
e. All expenses for the preservation of the thing after the delay or
the default shall be chargeable to the creditor
iii. Compensatio Morae – delay on the part of both
parties. Compensated or offset
1. Article 1192. In case both parties have committed a breach of
the obligation, the liability of the first infractor shall be equitably
tempered by the courts. If it cannot be determined which of the
parties first violated the contract, the same shall be deemed
extinguished, and each shall bear his own damages. (n)
4. Any other manner of contravention – violation of the terms and
conditions or defects in the performance of the
obligation. Except: 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. (1105a)
5. Fortuitous events- 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. (1105a)
a. Elements of Fortuitous Events:
i. The cause or the failure of the debtor to comply with obligations
must be independent of human will;
ii. It must be impossible to foresee or if it can be foreseen, it must
be impossible to avoid;
iii. The occurrence must be such as to render it impossible for the
debtor to fulfill obligations in a normal manner; and
iv. The obligor must be free from any participation in the
aggravation of the injury or loss.
b. Exceptions:
i. Declared by stipulations; clearly expressed
1. Article 1306. The contracting parties may establish such
stipulations, clauses, terms and conditions as they may deem
convenient, provided they are not contrary to law, morals, good
customs, public order, or public policy.
ii. When the nature of the obligation requires the assumption of risk
(contract of insurance). Risk of loss or damage is an essential
element in the obligation.
iii. Expressly specified by law:
1. The debtor is guilty of fraud, negligence or delay or
contravention of the tenor of the obligation
a. Article 1170. 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. Article 1165. If the obligor delays, or has promised to
deliver the same thing to two or more persons who do not have the
same interest, he shall be responsible for any fortuitous event until
he has effected the delivery.
i. Article 1262.An obligation which consists in the delivery of a
determinate thingshall be extinguished if it should be lost or
destroyed without the fault of the debtor, and before he has
incurred in delay.
When by law or stipulation, the obligor is
liable even for fortuitous events, the loss
of the thing does not extinguish the
obligation, and he shall be responsible
for damages. The same rule applies
when the nature of the obligation
requires the assumption of risk.
2. promised to deliver the same thing to two or more persons who
do not have the same interest. the reason is because it would
impossible to comply with obligation to both even without any
fortuitous event taking place.
3. the obligation to deliver a specific thing arises from a crime
a. Article 1268. When the debt of a thing certain and
determinate proceeds from a criminaloffense, the debtor shall not
be exempted from the payment of its price, whatevermay be the
cause for the loss, unless the thing having been offered by him to
the person who should receive it, the latter refused without
justification to accept it. (1185) mora accipiendi
4. The thing to be delivered is generic. Genus never perishes
a. Article 1263. In an obligation to deliver a generic thing, the loss
or destruction of anything of the same kind does not extinguish the
obligation. (n)
iv. When negligence, delay or fraud concurred with the fortuitous
event