Art. 1171 Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for future fraud is void. (1102a) refers to incidental fraud w/c is employed in the fulfillment of an obligation. Incidental fraud – fraud at the time of the performance of the obligation Responsibility is demandable in all obligations arising from fraud, you can demand for payment for damages. If the basis for damages is fraud, the court is not given the power to mitigate or reduce the damages because in fraud there is bad faith unlike negligence. Waiver – renunciation of right Waiver of an action for future fraud is void. It encourages commission of fraud. To commit acts of bad faith. Waiver of action for past fraud is valid. Because it already happened, considered as an act of generosity. Renounced: the effect of the fraud, the right to indemnity of the party entitled. Note: Waiver should be voluntarily signed to be valid. The signee should understand what he/she enters into. Art. 1172 Responsibility arising from negligence in the performance of every kind on obligation is also demandable, but such liability may be regulated by the courts, according to the circumstance. Unlike fraud, if there is negligence, the court may reduce the damages depending upon the circumstances of each case because there is no bad faith, no intent to commit this act. Negligence is not as serious as fraud because there is no deliberate intention to cause injury or damages. Past negligence, can be subject to waiver. An action for future negligence may be renounced, as long as it is not considered fraud, reckless that would cause damage to other person, not covered by those requiring extraordinary diligence, may be subject to
fraud. If there is bad faith, considered equivalent to fraud. Waiver is void. Kinds of negligence accdg to source of obligation (1) Contractual negligence (culpa contractual) – negligence in contracts resulting in their breach. Negligence is not a source of obligation but rather the contract that was entered bet the parties. (2) Civil negligence (culpa aquiliana) – negligence itself is the source of the obligation. Also called “tort or quasi-delict”. (3) Criminal negligence (culpa criminal) – negligence resulting in the commission of a crime. The negligent act causing damages may produce civil liability or create an action for quasi-delict. Ex. Driver of a taxi. (Reckless imprudence – criminal act) You can have all three as basis if they are connected in the same act but you can claim only once. Under Art. 2177 of Civil code, it is prohibited to recover twice for the same negligent act. When the plaintiff’s own negligence was the immediate and proximate cause of his injury, he cannot recover damages. If his negligence is contributory, the immediate and proximate cause of the injury being the defendant’s lack of due care, the plaintiff may recover damages but the court shall mitigate the damages to be awarded. **To be entitled to damages, it is not required that the negligence of the defendant should be the sole cause of the damage. Art. 1173 The fault or negligence of the obligor consists in the omission of that diligence w/c is req’d by the nature of the obligation and corresponds w/ the circumstances of the person, of the time and of the place. When negligence shows bad faith, the provisions of arts. 1171 and 2201, par 2, shall apply. If the law or contract does not state the diligence w/c is to be observed in the performance, that w/c is expected of a good father of a family shall be
req’d. Fault or negligence – the failure to observe for the protection of the interests of another, that degree of care, precaution and vigilance whereby other person suffers injury. Factors (1) Nature of obligation (2) Circumstances of the person (3) Circumstance of time (4) Circumstances of place In contracts and quasi-contracts, the dames for w/c the obligor who acted in good faith is liable shall be those that are the natural and probable consequences of the breach and w/c 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 w/c may be reasonably attributed to the non-performance of the obligation. Ex. B suffered a heart attack and was hospitalized for 5 days because of the breach by S resulting to loss of 5000 profit and this angered the former. If S acted in good faith, the damage w/c B ought to receive should be the amount of 5000, the profit w/c B failed to realize. If S acted in bad faith, he is also liable to pay for the hospitalization expenses w/c clearly originated from the breach. Kinds of Diligence (hierarchy) (1) Agreement (2) in the absence of agreement, required by law in the particular case (3) in the absence of agreement and law, the diligence of a good father of a family Art. 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 w/c could not be foreseen, or w/c though foreseen, were inevitable.
Fortuitous event – event cannot be foreseen, or which though foreseen, is inevitable. Impossible to foresee or impossible to avoid. Essence: consists of being a happening independent of the will of the debtor and w/c makes the normal fulfillment of the obligation. Fortuitous event – Act of man (murder, war, fire…) Force majeure – act of God (earthquake, calamities…) Under oblicon, they are identical. Both are independent of the will of the obligor. Kinds of Fortuitous events (1) ordinary fortuitous event – common, could reasonably foresee (rain, floods in davao) (2) extra-ordinary fortuitous event – uncommon, could not have possibly foreseen (earthquake, war, pestilence) Requisites: (1) event must be independent of the human will or at least of the debtor’s will (2) event could not be foreseen and if foreseen, inevitable (3) event must of such a character as to render it impossible for the debtor to comply w/ in a normal manner (4) the debtor must be from any participation in the aggravation or injury to the creditor, no negligence in the part of the debtor. In the absence of any requisites would prevent the obligor from being exempt from liability. Mere pecuniary inability or poverty, is not an excuse for non-fulfillment of the obligation. Neither is mere difficulty to foresee an event; it is different from the impossibility to foresee. The event must be unforeseeable or if foreseen, must be impossible to avoid. General rule: A person is not responsible for loss or damage caused to another resulting from fortuitous event, his obligation is extinguished. Exceptions: (1) when expressly defined by law.
(a) When there is fraud, negligence or contravention of the tenor (1170, 1165) (b) The debtor has promised to deliver the same specific thing to 2 or more persons who don’t have the same interest (c) The obligation to deliver a specific thing arises from a crime (d) The thing to be delivered is generic (2) When declared by stipulation The intention to make the debtor liable even in case of fortuitous event must be clearly expressed
(3) When the nature of the obligation requires the assumption of risk Risk of loss or damage is an essential element Art. 1175 Usurious transactions shall be governed by special laws. Simple loan/mutuum – contract where one of the parties delivers to another upon the condition that the same amt of the same kind and quality shall be paid. Usury -
