When will you be liable for damages? (Arts. 1165-1173, Civil Code, Nature and Effect of Obligations)

Summary

In this video, Attorney Marty Chris Baton Lasko explains the concept of damages in law, focusing on the grounds for liability. He outlines the definition of damages as a monetary compensation for injury or wrong, whether from a breach of contract or a tort. Key grounds for liability include delay, fraud, negligence, and breach of contract, with detailed examples and explanations of each. The video emphasizes the importance of meeting obligations, the exceptions to delay, and the inability to waive fraud. Attorney Lasko simplifies complex legal principles, making them easier to understand in under 10 minutes.

Takeaways

• 😀 Damages refer to the sum of money awarded as compensation for injury or wrong caused by another party, often due to a breach of contract or a tortuous act.
• 😀 Liability for damages can arise from fraud, negligence, delay, or breach of contract, as stated in Article 1170 of the Civil Code.
• 😀 Legal delay occurs when a debtor fails to fulfill an obligation after the agreed time and after a demand has been made by the obligee.
• 😀 Three requisites for legal delay: (1) failure to fulfill the obligation, (2) a demand made by the obligee, and (3) failure to comply with the demand.
• 😀 A demand can be judicial (court action) or extrajudicial (e.g., a demand letter).
• 😀 There are exceptions to the need for demand to establish delay, such as when the law expressly declares it unnecessary, or when time is of the essence (e.g., wedding cake delivery).
• 😀 The law provides that demand is not necessary when the debtor has rendered performance beyond their power to fulfill.
• 😀 Fraud involves using deceptive words or actions to induce someone to enter a contract, leading them into a deal they would not have entered otherwise.
• 😀 Parties cannot waive the possibility of future fraud in a contract, as fraud is an intentional deceit that the law does not tolerate.
• 😀 Negligence is when a voluntary and deliberate act causes unintentional harm, such as recklessly driving a car and damaging another's vehicle.
• 😀 To determine negligence, ask whether a prudent person in the same situation would have acted the same way. If not, then negligence is likely present.
• 😀 A breach of contract or contravention of the terms of an agreement (e.g., painting a house the wrong color) is grounds for liability for damages.

Q & A

What are damages in legal terms?

Damages refer to the sum of money awarded by law as compensation for injury or harm caused by a breach of contract or a tortious act.

Does the Civil Code define damages?

No, the Civil Code does not provide a specific definition of damages, but it enumerates different types of damages.

What is the definition of damages according to the Supreme Court?

The Supreme Court defined damages as the sum of money awarded as pecuniary compensation for an injury or wrong sustained, either from a breach of a contractual obligation or a tortious act (ME Builders Incorporated vs. Court of Appeals, GR No. 121484, January 31, 2005).

What is the ground for liability for damages under Article 1170?

Article 1170 specifies that those who are guilty of fraud, negligence, or delay in the performance of their obligations, or who contravene the terms of the contract, are liable for damages.

What is the difference between delay and legal delay?

Delay refers to the failure to fulfill an obligation on time. Legal delay occurs when an obligation is not fulfilled after a demand has been made, and the debtor has failed to comply.

What are the three requisites for legal delay?

The three requisites for legal delay are: (1) failure to fulfill the obligation, (2) demand made by the obligee, and (3) failure to comply with the demand.

What are the exceptions to the general rule on no demand for legal delay?

The exceptions are: (1) when the contract or the law expressly declares no demand is necessary, (2) when time is of the essence, and (3) when demand would be useless because the debtor can no longer perform the obligation.

What is fraud in the context of liability for damages?

Fraud occurs when one party uses deceptive words or actions to induce another party to enter into a contract, and the other party would not have entered into the contract had they known the truth.

Can parties waive future fraud in a contract?

No, under Article 1171, any agreement to waive future fraud is void because the law does not tolerate intentional deceit.

What is negligence, and how does it relate to liability for damages?

Negligence is a voluntary and deliberate act that causes damage to another, even though the damage itself is unintentional. A person may be liable for damages if their negligent actions cause harm.

How is negligence determined in legal terms?

Negligence is determined by asking whether a prudent person, under the same circumstances, would have acted in the same way. If the answer is no, then negligence is considered to have occurred.

What is an example of contravention of the terms of an agreement?

An example is if a painter is hired to paint a house red but instead paints it black. This constitutes a breach of contract and makes the painter liable for damages.