Obligations Chapter 2 part 3

Summary

This script discusses the legal implications of breaching obligations, detailing the conditions under which a debtor may be liable for damages. It covers the grounds for liability, including fraud, negligence, delay, and non-performance, and explains the exceptions such as fortuitous events. The script also outlines the remedies available to creditors and the transferability of rights and obligations, providing a comprehensive overview of the nature and effects of obligations in legal contexts.

Takeaways

• 📜 Obligations are considered juridical necessities, and non-performance can lead to the debtor being liable for damages.
• 💰 Damages are monetary payments meant to compensate for the injury or loss suffered by the obligee due to the breach of obligation by the obligor.
• 🔍 Article 1170 enumerates specific grounds for liability for damages, including fraud, negligence, delay, contravention of terms, and non-performance.
• 🚫 Fraud involves intentional or deliberate non-fulfillment of an obligation and is not allowed to be waived for future occurrences.
• 🚑 Negligence is defined as the absence of diligence or care required under the circumstances, and liability for negligence can vary on a case-by-case basis.
• ⏱️ Delay in fulfilling an obligation can incur liability unless it is due to a fortuitous event or other exceptions.
• 📝 Contravention of the terms agreed upon is a breach of obligation that can lead to liability for damages.
• 🚫 Non-performance of an obligation is a clear breach, but there are instances where the debtor may not be liable for damages despite the breach.
• 🌪 A fortuitous event, which is unforeseeable or beyond control, can excuse the debtor from liability for damages due to delay, loss, or non-performance.
• 📋 There are exceptions to the rule of fortuitous events, such as when the debtor has assumed the risk or there was already delay before the event occurred.
• 🔄 Rights and obligations are generally transmissible or transferable, allowing for assignment or performance by another person, except in cases deemed personal by the parties or the law.

Q & A

What are the consequences of a debtor failing to perform their obligations?

If a debtor fails to perform their obligations, they become liable for damages, which may include monetary payments to compensate for the injury or loss suffered by the creditor due to the breach of obligation.

What does Article 1170 enumerate in the context of liability for damages?

Article 1170 enumerates the grounds for liability for damages, which include specific kinds of breaches such as fraud, negligence, delay, contravention of terms agreed upon, and non-performance of the obligation.

Can you explain the concept of 'fraud' as a ground for liability in damages?

Fraud in this context refers to an intentional or deliberate non-fulfillment of a public obligation. It includes deception or deceit in the performance or non-performance of an obligation and can be further categorized into causal fraud and incidental fraud.

What is the rule regarding the waiver of the right to demand liability for future fraud?

The law does not allow for the waiver of the right to demand liability for future fraud. Any agreement to this effect is considered void because it could potentially encourage the debtor to commit fraud.

How is negligence defined in the context of breach of obligation?

Negligence is defined as the absence of diligence or care that a person would take in a particular circumstance. It is determined based on the degree of care required under the specific circumstances of time, place, or person.

What are the conditions under which a debtor may not be liable for damages due to a fortuitous event?

A debtor may not be liable for damages if the delay, loss, or non-performance of the obligation is due to a fortuitous event that is unforeseeable or beyond the control of the debtor, provided that the debtor did not assume the risk or contribute to the event.

What are the exceptions to the rule that a debtor is not liable for damages due to a fortuitous event?

There are exceptions where the debtor may still be liable for damages even if a fortuitous event occurred. These include if there was an assumption of risk or if there was already a delay before the fortuitous event happened.

What remedies are available to creditors for the satisfaction of their claims?

Creditors have alternative remedies such as exact fulfillment or specific performance with the right to damages, pursuing the seizable properties, exercising rights available to the debtor on behalf of the debtor, and asking the court to rescind or cancel the contract.

What does the term 'transmissibility' or 'transferability' of rights and obligations mean?

Transmissibility or transferability of rights and obligations means that rights can be assigned to another person to enjoy, and obligations can be performed by another person on behalf of the original obligor, unless the parties agree or the law considers the obligation to be personal and non-transferable.

What is the significance of the presumptions mentioned in Article 1176?

The presumptions in Article 1176 provide an inference of fact based on its usual connection with another thing. For example, there's a presumption that interest has been paid first in the payment of monetary obligations, and a presumption of payment of earlier liability in the case of later payments.

Outlines

00:00

📚 Legal Consequences of Non-Performance

This paragraph discusses the legal repercussions when a debtor fails to fulfill their obligations. It emphasizes that non-performance leads to the debtor being liable for damages, which are monetary payments to compensate for the loss or injury suffered by the creditor due to the breach. The paragraph introduces Article 1170, which lists the grounds for liability for damages, including fraud, negligence, delay, contravention of terms, and non-performance. It explains that fraud involves intentional non-fulfillment or deceit in the performance of an obligation, and that the law recognizes different types of fraud, such as causal and incidental fraud. The paragraph also mentions that the responsibility for fraud in obligations is demandable in all kinds of obligations, and that the law does not allow agreements to waive liability for future fraud.

05:02

🚸 Negligence and Its Legal Implications

Paragraph 2 delves into the concept of negligence as a ground for liability, defining it as the absence of diligence or care required under specific circumstances. It provides examples to illustrate negligence, such as a doctor prescribing an inadequate treatment or a driver not adjusting their speed in poor weather conditions. The paragraph explains that the extent of liability for negligence is determined on a case-by-case basis, and courts have the discretion to mitigate or reduce damages awarded, considering the degree of negligence and whether the other party also contributed to the negligence.

10:24

⏳ Delay and Breach of Obligation

This paragraph addresses the concept of delay in the context of obligations, stating that delay cannot be claimed if there is no demand or if the demand is made before the obligation's due date. It discusses the conditions under which a debtor is liable for delay and the various grounds for breach of obligation, such as non-performance. The paragraph also introduces Article 1174, which outlines circumstances where a debtor may not be liable for damages despite a breach, such as in the event of a fortuitous event—an unforeseeable occurrence that is beyond the control of the debtor. However, it notes exceptions where the debtor remains liable, like when there is an assumption of risk or if delay occurred before the fortuitous event.

15:25

🚫 Exceptions to Liability and Presumptions

Paragraph 4 continues the discussion on exceptions to liability, focusing on fortuitous events and their impact on a debtor's responsibility. It explains that a debtor is not liable for damages due to a fortuitous event if it is the direct cause of the breach of obligation. However, the paragraph also outlines exceptions to this rule, such as when there is an assumption of risk or pre-existing delay. The paragraph then transitions to discuss legal presumptions, which are inferences of fact based on usual connections with other facts. It mentions specific presumptions related to the payment of interests and the order of payments in obligations, noting that these presumptions can be overridden by concrete proof.

20:28

🔄 Rights and Remedies for Creditors

The final paragraph outlines the rights and remedies available to creditors when a debtor is liable for damages. It discusses the options for creditors, such as exact fulfillment, specific performance, the right to damages, and the ability to pursue the debtor's properties through legal means. The paragraph also touches on the transmissibility of rights and obligations, explaining that rights acquired through obligations are generally transferable, unless specified otherwise by the parties or by law due to the personal nature of the obligation. This paragraph concludes the chapter on the nature and effects of obligations.

Keywords

💡Juridical Necessity

Juridical necessity refers to the legal obligation that a person has to fulfill a duty or perform an action as mandated by law. In the context of the video, it is mentioned that the non-performance of an obligation, which is a juridical necessity, can lead to the debtor being liable for damages. This concept is central to understanding the legal consequences of failing to meet contractual or legal duties.

💡Damages

Damages are monetary payments awarded to compensate for a loss or injury suffered due to a breach of obligation. The video explains that if a debtor fails to perform their obligation, they may be held liable for damages to indemnify the creditor for the harm caused. This is a key concept in legal remedies, as it provides a means for the aggrieved party to seek compensation for the breach.

💡Breach of Obligation

A breach of obligation occurs when a party fails to fulfill the terms of a contract or legal duty. The video script discusses various grounds for liability for damages, which include different types of breaches such as fraud, negligence, and delay. Understanding breach of obligation is crucial as it sets the stage for the discussion on when a debtor may be liable for damages.

💡Fraud

Fraud in the context of the video is defined as an intentional or deliberate non-fulfillment of a public obligation, involving deception or deceit. The script mentions that there are different kinds of fraud, including causal fraud and incidental fraud. Incidental fraud, which is relevant here, refers to the deceit in the performance or non-performance of an obligation. Fraud is a ground for liability for damages, as it is a deliberate act that harms the obligee.

💡Negligence

Negligence is described as the absence of diligence or care required under the circumstances. It is a failure to observe the degree of care that a reasonable person would exercise in similar situations. The video uses the example of a doctor prescribing ordinary cough medicine for pneumonia, which would be considered negligent due to the doctor's specialized knowledge. Negligence is a ground for liability for damages, as it involves a failure to act with the necessary care.

💡Delay

Delay, as discussed in the video, refers to the failure to perform an obligation within the time agreed upon. The script specifies that there can be no delay if there is no demand, and the demand must be made upon the maturity or due date of the obligation. Delay is a breach of obligation that can lead to liability for damages, as it causes the creditor to suffer from the late fulfillment of the debtor's responsibilities.

💡Fortuitous Event

A fortuitous event is an unforeseeable event or one that is beyond the control of the parties involved. The video explains that if a delay or non-performance of an obligation is due to a fortuitous event, the debtor may be excused from liability for damages. However, exceptions apply, such as when there is an assumption of risk or if there was already delay before the event occurred. This concept is important in determining when a debtor can be held accountable for damages.

💡Usury

Usury refers to the practice of lending money at unreasonably high rates of interest. The video mentions that usury law has been suspended, but it historically set a cap on the maximum interest rates that could be charged. The courts have the power to reduce excessive interest, which is relevant to the discussion of legal limits on the charges that can be imposed on debtors.

💡Presumptions

Presumptions are legal assumptions made based on the usual connection between facts. The video explains that there are certain presumptions in payments, such as the presumption that interest has been paid when the principal is received, or that a payment is made towards the earlier liability. These presumptions are used to guide the interpretation of facts in the absence of direct evidence.

💡Transmissibility

Transmissibility refers to the ability to transfer or assign rights and obligations to another person. The video emphasizes that rights and obligations are generally transmissible, unless the parties agree otherwise or the law considers the obligation to be personal. This concept is important as it allows for flexibility in the fulfillment of obligations and the exercise of rights.

Highlights

Debtor's non-performance of obligations leads to liability for damages as a form of compensation for the creditor's loss.

Article 1170 enumerates specific grounds for liability for damages, including fraud, negligence, delay, contravention of terms, and non-performance.

Fraud in the performance of obligations is intentional and can be causal or incidental, affecting the debtor's liability.

Article 1171 states that fraud in obligations is demandable in all kinds, prohibiting waivers for future fraud.

Courts have no power to mitigate damages awarded for fraud, emphasizing the severity of fraudulent actions.

Negligence is defined as the absence of diligence or care, with liability depending on the specific circumstances.

Liability for negligence can be mitigated by the court based on the degree of negligence and potential concurring negligence by the other party.

Delay in obligations is only considered if there is a demand made on the due date, with exceptions for cases where demand is not needed.

Breach of obligation terms agreed upon and non-performance are grounds for the debtor's liability for damages.

Article 1174 discusses the impact of fortuitous events on liability, excusing the debtor if the event is unforeseeable or beyond control.

Exceptions to the excusal of liability due to fortuitous events include the assumption of risk and pre-existing delay by the debtor.

Article 1175 touches on the historical context of usury laws and the courts' power to reduce excessive interest.

Presumptions in law, such as the payment of interest before principal, are subject to change with concrete proof.

Article 1177 outlines the alternative remedies available to creditors, including specific performance and the pursuit of securities.

Rights and obligations are generally transmissible or transferable, allowing assignment to third parties, except in cases deemed personal by agreement or law.

The discussion emphasizes the importance of understanding the nature and effects of obligations in legal transactions.

Transcripts

okay so now what

if the debtor fails to perform his or

her

obligation as what we have been

repeatedly saying

that since an obligation is a juridical

necessity

the non-performance of that obligation

will make

the debt reliable for damages

so there will be sanctions there will be

penalties

in the form of damages damages here guys

we are referring to the monetary payment

to compensate or to indemnify

the injury suffered or the loss

suffered by the obligate creditor

because of the breach of obligation of

the death or

obligor but when will the debtor be

really liable for

damages when can we consider him to have

committed a breach of

obligation so let's go to article 11

17. as what i have mentioned earlier

article 1170 is attached all provision

because it has enumerated or it

enumerates

the grounds for liability for damages

therefore these are the specific kinds

of breaches

that the death or or obligor may be

liable

off if what are those number one

fraud number two negligence

number three delay number four

contravention of the tenor or

contravention of the terms agreed upon

and of course not enumerated here but

should be included

number five is the non-performance

of the obligation

of

let's have these specific grounds one by

one

floyd what is fraud i'm sure you have

already heard

the term foreign

there's deception there is deceit

fraud here guys is that intentional

okay intentional or deliberate

not fulfillment by the death or of his

or her public

obligation but please take note

that there are several kinds of frauds

recognized in our law

one is the causal fraud or the fraud in

getting the consent of

a party musa

and the other one is the incidental

fraud

and that is the fraud ref referred to

here

in article 1170 and article 1171

so incidental fraud is the flawed in the

performance

of the obligation

deliberate or intentional

deception or deceit in the performance

or

non-performance of his or her obligation

okay so what are the rules on fraud as

at the ground for

damages so in article 1171

the responsibility arising from fraud

is demandable in all kinds of

obligations

may it be a real obligation personal

obligation

or the other kinds of obligations that

we will be discussing in chapter 3

whether it be pure obligation

conditional subject to a period

anything as long as there is an

obligation

and as long as there is fraud in the

performance of the obligation then the

obliger

or the debtor will be liable for that

particular

form okay article 1171

further provides that a waiver

[Music]

in the performance of his or her

obligation

the creditor or the obligee can

actually waive his right to demand the

liability

of the death

[Music]

is not allowed by law any agreement to

that effect

is already considered as void why

because if the creditor would raise

the debtors responsibility for a future

fraud

this will give way to the debtor of

libor

to really commit fraud in the

performance of this obligation because

anyway

okay so that agreement the agreement to

that effect is

really void now if ever there is

also responsibility for fraud guys

please take note

that the courts have no power

to mitigate or to reduce the damages

that will be awarded to that creditor

let's say the debtor has performed his

obligations

for damages because although there was

fraud

he was able to perform his obligation

anyway

in this case no okay the reason behind

this

is because our law does not

[Applause]

[Music]

any commission of fraud on the part of

the

debtor or obliger there shall be no

mitigation

for the liability of damages and there

will be no

waiver for future fraud

okay next ground is negligious

so what is negligence negligence is

simply defined as the

absence of diligence diligence food

has been defined as the care that a

person would

take in a particular constant sense a

particular circumstances

so you will be considered negligent if

you

fail to observe the degree of care

required under the circumstances so case

the case basis

okay so it depends on the circumstance

of

time place or person let's say for

example you're a doctor

a

is already suffering from pneumonia

so as a doctor you should know

an ordinary medicine for a cough is no

longer enough or no longer sufficient

for pneumonia

so in that case because of your

knowledge of

medicine you are already considered as

negligent

because according to the circumstance of

time and place

you should have driven slowly under the

night time and it was training hard

negligence is the absence of care

or the absence of allegiance based on

circumstances a place

time person okay now

if there is a liability for negligence

guys or if there is a responsibility for

negligence

here the amount of liability

of the person actually depends good

on a case-to-case basis because the

court

can mitigate or the court can reduce the

amount of the damages

depending on how negligent the person

was or depending also if whether or not

the other party is also guilty of

concurring

negligence it's a for example

negligence

or responsibility for damages depending

on the

surrounding circumstances of the case

okay third ground guys is the

delay okay of the um what you call this

delay of that first one that's what we

have discussed in

article 1169 so there will be no delay

if there is no demand but please if not

guys that the demand

must be made upon the maturity

or on the due date of the obligation

because if the demand was made before

the

due date that's pretty much four so you

cannot be in delays okay

on the day that the obligation has to be

performed or in those exceptions that

the demand is not needed

then the debtor will be liable for delay

okay the fourth one conservation of the

terms agreed upon

example instead of colored

and the fifth one of course

non-performance

of the obligation right

obligation so you will be liable for a

breach of

that's the breach of

obligation and non-performance

okay so you will be liable for that

now the rule guys is if ever

there is a breach of obligation the

debtor will be liable for damages that's

what we have just discussed in

article 11 17. right

however there are instances or there

are cases wherein the death or

is liable for breach but even if there

was a breach of obligation

he will not be liable for damages

when would that be let's go to article

11 article

1174 provides

the rules if ever there is a fortuitous

event what is a fortuitous event

a fortuitous event guys is an event

which is um

unforeseeable right or even if it is

foreseeable

[Laughter]

but up until today guys we do not have

the technology to detect the

happening of an earthquake

but uh that is just belief

but

[Music]

there is still no way for us to stop the

happening

of that event what we can do

affording this event guys can be an act

of

god or an act of man if it is an

act of god

anna that is really good for twitter's

event in its truest

sense but even if the event is an act of

man it can still be considered as a

fortuitous event

provided that the obligor

or the therefore has no participation

or has no hand at all why

such event happened

all right so what is the effect of a

fortune to see there

because the free tweeters event is

unforeseeable

or even if foreseeable

it's beyond the control of the obligor

or the death or

so if ever there was a delay

or there was not loss or non-performance

of the obligation

because of the fortuitous event the

debtor

will not be liable for a

[Music]

so he will be excused from liability

provided that the reason for that

loss delay or for that reach of

obligation

is that for twitter's event in the

proximity cause

of the breach of obligation is a

forbidden event

then the debtor is accepted

from liability or is excused from his

or her obligation for damages

but in article 1174 night

exceptions now even if there is a

fortuitous event now supposedly

that is not liable the debtor will still

be liable

if hey when would that be number one

there is an assumption of risk

okay and number two if there was already

delay

before the happening of the fortuitous

event in article 1165 if i'm not

mistaken

if there was a promise to give or to

deliver the object same object

to two or more persons having different

interests so there will be liability for

for tweet to see that

assumption of risk assumption of risk

you're familiar with insurance

so insurance guys and business they

assume risk now they will pay or they

will indemnify the insured

person if that in the covered

event or instance has taken place like

for example

fire insurance

insurance company insurance company now

there is a possibility now

because that that is their main

agreement

so there's assumption of this okay

second delay before the happening of the

fortuitous event so for example

friday friday

[Music]

there was already a delay on his part

before the fortuitous event

happen so e in this case says guys

even if they support me to see there the

debtor or the obliger will still be

liable

for damages okay then

article 1175 you serious transactions

actually this is no longer

uh used today because usury law has

already been suspended

under the usury law there is a cap or

there is a maximum for

interiors

and if you go beyond that or more than

that you will be

criminally liable

but anyway the courts we we have the

legal interest and the courts

have the authority or the power to

reduce the interest if ever it is

exorbitant or if ever

it is very excessive okay article

1176 presumptions

what is a presumption it is an inference

of fact

although not actually

but because of its usual connection with

another thing

we can say now what happened in the past

will be the same thing

what the results in the past if same

facts similar facts are on

so unresolved anemia will be the same

result as in the past

event or in that other event okay so

presumption

the receipt of the principal there's a

presumption that the interest has

already been

paid this is in payment of obligations

monetary obligations

you pay first the interest before you

pay the principal obligation

obligation and presumption

interest okay a payment of a later

rental or a later uh jew

there's a presumption on earlier

liability or obligation so for example

rentals

the presumptions guys will not apply

okay these are just presumptions

this will not apply if there is

really proof

interest or paid

will not apply in this case and then

article 1177

the rights or the remedies available to

the creditors

for the satisfaction of their claims so

if ever

the debtor is now liable how what can

the creditor

do or what can what are the specific

rights that the creditor may avail off

so here we have the exact fulfillment

for specific performance with right to

damages

pursue the labelable properties embargo

or properties

uh exercise or rice available to

the debtor on behalf of the debtor and

ask the court to rescind or to cancel

the

quanta in article 1177 guys what you

have to take note here

is the fact that these remedies

available to the creditor

are alternative in

alternative remedies and lastly for this

chapter

article 1178 uh

subject to loss all rights acquired by

virtue

of the obligation are transmissible

or transferable this is an important

uh article you have to take note of this

because you can use this good

in your all other transactions

okay transferability or transmissibility

of

rights and obligations meaning you can

assign

you can let another person

enjoy your rights or you can let another

person perform your

obligation on your behalf but of course

if the parties would agree or if the law

uh considers an obligation to be

personal

that means

so it cannot be transferred it's no

longer transmissible

or transferable but only as an exception

because the look the rule

is the rights and obligations are

transmissible

or transferable so that

ends our discussion for chapter 2

the nature and effects of obligations