Articles 1167 1170 Summary

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Articles-1167-1170 - Summary
Law On Business Organization (Cavite State University)
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ART. 1167. If a person obliged to do something fails to do it the same shall be

executed at his cost.
This same rule shall be observed if he does it in contravention of the tenor of

the obligation. Furthermore, it may be decreed that what has been poorly done
be undone. (1098)
Article 1167 refers to an obligation to do, i.e., to perform an act or render a service. It
contemplates three situations whereas the debtor fails to perform an obligation to
do, perform obligation to do but contrary to the terms thereof, and performs an
obligation to do but in a poor manner.
Here are the remedies of creditor in positive personal obligation:
If the debtor fails to comply with his obligation to do, the creditor has the right to have
the obligation performed by himself, or by another unless personal considerations
are involved, at the debtor’s expense; and to recover damages. In case the
obligation is done in contravention of the terms of the same or is poorly done, the
court may order (upon complain) that it be undone if it is still possible to undo what
was done. If the debtor fails to perform the obligation to do, note that the creditor
could ask someone else (a third person) to perform the obligation to do at the
expense of the debtor.
ART. 1168. When the obligation consists in NOT DOING, and the obligor does
what has been forbidden him, it shall also be undone at his expense. (1099a)
It pertains to negative personal obligation, or the obligation not to do. Also, to the
obligation of the obligor to undo the forbidden act of thing, he may also be made
liable for damages caused by doing that which was forbidden.
ART. 1169. Those obliged to deliver or to do something incur in DELAY from

the time the obligee judicially or extra-judicially demands from them the
fulfillment of their obligation.
However, the demand by the creditor shall not be necessary in order that delay
may exist:

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(1) When the obligation or the law expressly so declares; 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)
Article 1169 covers the delay--- its meaning, kinds, and its effect. The first sentence
of the article states the general rule where the obligor is in delay if the obligee
demands already the fulfillment of their obligation but it is also indicated on the latter
part that there are situations where we could consider automatic delays even without
the demand of the creditor.
Meaning of delay
For distinction, the ordinary delay is the failure to perform an obligation on time
while in law (Art.1169), legal delay or default or mora it is define as the failure to
perform an obligation on time which failure, constitutes a breach of the obligation.
Kinds of delay
1. Mora solvendi or the delay on the part of the debtor

2. Mora accipiendi or the delay on the part of the creditor
3. Compensatio morae or the delay of both creditor and debtor (no delay)
Requisites of delay or default by the debtor.
1. Ordinary delay
2. Legal delay or mora or default
3. Failure of the debtor to comply with such demand.
Effects of delay.

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In the case of 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. (Arts. 1165, 1170.) However, if the debtor can prove that the loss
would have resulted just the same even if he had not been in default, the court may
equitably mitigate the damages. (Art. 2215[4].)
In the case of Mora Accipiendi, the following are the effects:
(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 (see Art. 1162.);
(d) Where the obligation is to pay money, the debtor is not liable for interest from the
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. (see Art. 1256.)
In the case of Compensatio morae, the following are the effects:
(a) There is no delay in both parties.
(b) If it cannot be determined which of the following parties is guilty of delay, the
contract shall be deemed extinguished and each shall bear his own damages.
Demand is not necessary to put debtor in delay when the obligation so provides,
the law so provides, the time is of the essence, the demand would be useless, and
when there is performance by a party in reciprocal obligations. In case of reciprocal
obligations (see Art. 1191.), the performance of one is conditioned upon the
simultaneous fulfillment on the part of the other.

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ART. 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)
Obligee could claim damages when the debtor is guilty of fraud, negligence, or delay,
and those who in any manner contravene the tenor
Grounds for liability.
1. Fraud (Deceit or dolo)- deliberate or intentional evasion of the normal

fulfillment of an obligation
(a) Casual fraud (dolo causante)- fraud in obtaining consent
(b) Incidental fraud (dolo incidente)- committed in the performance of the
obligation already existing
2. Negligence (fault or culpa)- Not intentional: It is any voluntary act or
omission, there being no malice, which prevents the normal fulfillment of an
obligation.
3. Delay (mora)- the failure to perform an obligation on time which failure,
constitutes a breach of the obligation.
4. Contravention of the terms of the obligation- violation of the terms and
conditions stipulated in the obligation. The contravention must not be due to a
fortuitous event or force majeure.
Note that FRAUD is intentional and must be clearly proved. Waiver for future
fraud id void. The liability for this is cannot be mitigated. On the other hand,
NEGLIGENCE is not intentional and it is presumed from a violation of a
contractual obligation. Liability for this may be reduced according to
circumtances.

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lOMoARcPSD|7321929

Law On Business Organization (Cavite State University)

StuDocu is not sponsored or endorsed by any college or university

ART. 1167. If a person obliged to do something fails to do it the same shall be

This same rule shall be observed if he does it in contravention of the tenor of

Here are the remedies of creditor in positive personal obligation:

ART. 1169. Those obliged to deliver or to do something incur in DELAY from

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(1) When the obligation or the law expressly so declares; or

1. Mora solvendi or the delay on the part of the debtor

Requisites of delay or default by the debtor.

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In the case of Mora Solvendi, the following are the effects:

(a) The debtor is guilty of breach of the obligation;

In the case of Mora Accipiendi, the following are the effects:

(a) The creditor is guilty of breach of obligation;

(b) He is liable for damages suffered, if any, by the debtor;

In the case of Compensatio morae, the following are the effects:

(a) There is no delay in both parties.

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1. Fraud (Deceit or dolo)- deliberate or intentional evasion of the normal

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