BREACH OF OBLIGATION

2 TYPES
• VOLUNTARY
Arises from modes of breach
• INVOLUNTARY
Arises because of fortuitous events
Modes of Breach

Art 1170
Those who in the performance of their obligations are guilty of fraud,
negligence, or delay and those who in any manner are liable for
damages.
MODES OF BREACH
• Fraud (Dolo)
– is the voluntary execution of a wrongful act knowing and intending
the effects which naturally and necessarily arise from such act or
omission.
MODES OF BREACH
• Negligence (culpa contractual)
– mere want of care of diligence, not the voluntariness of act or
omission
MODES OF BREACH
• Delay (Mora)
– non- fulfillment of obligation with respect to time
However, the demand by the creditor shall not be necessary in order
that delay may exist:

• When the OBLIGATION/ LAW expressly declares

• When from the nature and the circumstances of the obligation it appears that
the designation of the time when the thing to be delivered or the service is to
be rendered was a controlling motive for the establishment of the contract
• 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
fulfill his obligation, delay by the other begins.
There can only be delay in positive obligations (to give and to do) and
not in the negative obligations (not to give and not to do)
Kinds of Mora

• Mora solvendi- delay on the part of the debtor

• Mora accipiendi – delay on the part of the creditor, like when the
creditor unjustifiably refused to accept payment at the time it was
due
• Compensation morae – delay both parties in a reciprocal obligation
Effects of Mora

• Mora solvendi
When it has for its object a determinate thing, the delay places
the risk of the thing on the debtor
Debtor becomes liable for damages of the delay
Mora accipiendi
• Responsibility of the debtor for the thing is reduced and limited to fraud
and gross negligence
• Debtor is exempted from the risks of loss of thing, which automatically
pass to the creditor
• All expenses incurred by the debtor for the preservation of the thing after
the mora shall be chargeable to the creditor.
• If the obligation bears interest, the debtor does not have to pay it from the
moment of the mora
• The creditor becomes liable for damages
• The debtor may relieve himself of the obligation by the consignation of the
thing.
Compensation morae
• Exceptio non adempleti contractus – one is not compelled to perform
his prestation when the other contracting party is not yet prepared to
perform his prestation; default of one compensates the default of the
other.
When demand is not necessary

• When the obligation expressly so declares

• Example In the obligation it is stipulated that “ D shall incur in delay if
he does not pay the obligation upon the arrival of the designated date
for payment.”
When the law so provides
• Example Taxes would be paid on or before a specific date, otherwise,
penalties are imposed without the need to demand payment by the
government.”
When demand would be useless
• Where performance has become impossible|
Example S obliged himself to deliver a specific horse to B on September
5. Through S’s negligence, or by reason of fortuitous event for which S
expressly bound himself responsible, the horse died on September 2.
• When there is performance by a party in reciprocal obligations
• Fulfillment of an obligation by one party depends upon the fulfillment
of the obligation by the other
• The fulfillment by the parties should be simultaneous; where both are
in default, their respective liability for damages shall be offset
equitably