What are fortuitous events? (Art. 1174, Civil Code, Nature and Effect of Obligations)

Summary

In this video, Attorney Marty Chris Baton Lasko explains the concept of fortuitous events and their effect on obligations and contracts. Fortuitous events are unforeseen or inevitable occurrences, such as typhoons, earthquakes, or pandemics, that can impact contractual agreements. Lasko discusses how individuals are not liable for damages caused by such events, provided the object in the contract is specific and not generic, like money. He also outlines exceptions to this rule, including legal delay, bad faith, specific contractual stipulations, and assuming risk in certain situations.

Takeaways

• 😀 Fortuitous events are events that cannot be foreseen, or though foreseen, are inevitable.
• 😀 Examples of fortuitous events include natural disasters like typhoons, earthquakes, and pandemics.
• 😀 A typhoon is a fortuitous event because, even though it can be forecasted, it is inevitable and unavoidable.
• 😀 Earthquakes are considered fortuitous events because they cannot be predicted with current technology.
• 😀 The global pandemic is a prime example of a fortuitous event that could not be anticipated.
• 😀 According to Article 1174 of the Civil Code, individuals are not responsible for fortuitous events that prevent them from fulfilling an obligation.
• 😀 In contract law, if a house is destroyed due to a fortuitous event like a typhoon, the seller is no longer liable to deliver the house.
• 😀 The principle of not being liable for fortuitous events only applies to specific things, not generic things like money.
• 😀 Generic things, like money, cannot be exempt from liability if they are lost due to a fortuitous event because they can be replaced.
• 😀 Exceptions to the rule include legal delay, bad faith, contractual stipulations, and situations where the obligation requires assuming a risk.

Q & A

What is a fortuitous event according to Article 1174 of the Civil Code?

A fortuitous event is an event that cannot be foreseen, or though foreseeable, is inevitable.

Can you give examples of fortuitous events?

Examples of fortuitous events include a typhoon, an earthquake, and a pandemic. These events are either unforeseeable or unavoidable, or both.

Why is a typhoon considered a fortuitous event?

A typhoon is considered a fortuitous event because, while it can be forecasted, it is inevitable and cannot be avoided.

What is the effect of a fortuitous event on an obligation or contract?

The effect is that a person is not liable for damages if the fulfillment of the contract or obligation is impossible due to a fortuitous event.

If my house is destroyed by a typhoon before I fulfill a contract to sell it, am I still liable to deliver it?

No, you are not liable. Since the house was destroyed by a fortuitous event, you cannot be held responsible for delivering it.

Does the principle of non-liability for fortuitous events apply to generic items?

No, the principle only applies to specific items. For example, if you promise to deliver a particular house, the loss due to a fortuitous event excuses you. However, if it's a generic thing like money, you remain liable even if lost in a fortuitous event.

What is the distinction between a specific thing and a generic thing in contract obligations?

A specific thing is one that is uniquely identified and segregated from a class (e.g., a particular house or car). A generic thing is replaceable and not uniquely identified (e.g., money).

Can a contract explicitly state that a fortuitous event will not excuse performance?

Yes, parties can stipulate in their contract that the obligation will still stand despite losses caused by a fortuitous event, provided the stipulation is not contrary to law, morals, customs, public order, or public policy.

What are the exceptions to the rule that you are not liable for fortuitous events?

Exceptions include legal delay, bad faith, stipulations in the contract, and cases where the obligation involves an inherent risk (e.g., carrying dangerous cargo).

What does legal delay mean in relation to fortuitous events?

Legal delay refers to situations where a party is already in default or has failed to perform their obligation before the fortuitous event occurs. In such cases, the party may still be liable even if the event was unforeseen.