When are you considered in delay? When are you liable for damages? (Articles 116-1170, Civil Code)

Summary

In this video, Attorney Chris Batan Lasko explains the concept of delay (mora) in obligations under Article 1169 of the Civil Code. He covers the conditions under which delay occurs, including judicial or extrajudicial demands, as well as the exceptions to the general rule. The video also explores reciprocal obligations and different types of delay, such as mora solvendi and mora accipiendi. Additionally, Lasko touches on grounds for claiming damages, such as fraud, negligence, and delay, and the various types of damages like moral, exemplary, and actual damages, offering practical insights into how the law handles breaches of obligation.

Takeaways

• 😀 Legal delay occurs only when there is a judicial or extrajudicial demand, and it leads to the obligation of paying damages.
• 😀 Ordinary delay refers to a lapse in the agreed time, but no legal delay occurs unless a demand is made.
• 😀 Legal delay is different from ordinary delay, and it entitles the obligee to claim damages only after a formal demand.
• 😀 There are exceptions where demand is not required for delay to occur, such as when it is explicitly stated in the contract, or when time is of the essence.
• 😀 Taxes are an example of situations where legal delay occurs without any demand, as the tax code automatically sets the time for payment.
• 😀 In cases where time is of the essence, such as ordering a wedding cake, delay occurs regardless of a demand from the obligee.
• 😀 Demand is considered useless if the obligor has made it impossible to fulfill the obligation, as in the case of a destroyed item that can no longer be delivered.
• 😀 In reciprocal obligations, neither party is in delay unless the other party fails to fulfill their obligation. Once one party performs, the other is in delay if they don't fulfill their side.
• 😀 There are three types of delay in obligations: mora solvendi (delay of the debtor), mora accipiendi (delay of the obligee), and compensation mora (delay by both parties).
• 😀 Delay isn't the only cause for claiming damages; fraud, negligence, and violation of contract terms can also lead to damages, as outlined in Article 1170.
• 😀 Different types of damages include moral damages (for emotional distress), exemplary damages (to correct a wrong), nominal damages (for rights vindication), and actual damages (for actual loss), among others.

Q & A

What does Article 1169 state regarding delay?

Article 1169 states that delay occurs when those obliged to deliver or perform something fail to do so after the obligee has judicially or extrajudicially demanded the fulfillment of the obligation.

What is the difference between ordinary delay and legal delay?

Ordinary delay occurs when there is a lapse of the agreed time without any legal consequences such as damages, whereas legal delay allows the obligee to claim damages, and this happens only after a judicial or extrajudicial demand.

What are the exceptions to the rule that delay requires a demand?

The exceptions include: 1) When the obligation or the law expressly declares no demand is needed to incur delay, 2) When time is of the essence, and 3) When making a demand would be useless, such as when the obligor can no longer perform the obligation.

Can you give an example of a situation where time is of the essence?

An example is when you order a wedding cake for a specific date. The supplier cannot claim they are not in delay if the cake is not delivered on the agreed date, even if no demand was made.

What happens if the obligor renders it impossible to perform the obligation before the demand is made?

If the obligor intentionally makes it impossible to perform the obligation, such as destroying the specific car they were supposed to deliver, a demand would be useless, and legal delay would not be applicable.

What happens in reciprocal obligations when one party fails to fulfill their obligation?

In reciprocal obligations, one party incurs delay if the other is ready and willing to fulfill their obligation but fails to do so. For example, if the seller delivers but the buyer does not pay, the buyer is considered in delay.

What are the three types of delay mentioned?

The three types of delay are: 1) Mora solvendi (delay by the debtor), 2) Mora accipiendi (delay by the obligee), and 3) Compensation mora (delay by both parties in reciprocal obligations).

Are there other grounds to claim damages aside from delay?

Yes, other grounds for claiming damages include fraud, negligence, and contravention of the terms of the obligation as stated in Article 1170.

What are the different types of damages one can claim?

The types of damages are: 1) Moral damages (for anxiety, sleepless nights, etc.), 2) Exemplary damages (to correct a wrong), 3) Nominal damages (to vindicate a right), 4) Temperate damages (when the exact amount of damage is hard to determine), 5) Actual damages (for actual loss like loss of profits), and 6) Liquidated damages (pre-determined in the contract).

What is the significance of liquidated damages in a contract?

Liquidated damages are pre-determined amounts specified in the contract that must be paid in case of a breach. These are agreed upon by the parties in advance to avoid disputes over the value of damages.