fraud.

If there is bad faith, considered

Art. 1171 Responsibility arising from equivalent to fraud. Waiver is void.
fraud is demandable in all obligations. Kinds of negligence accdg to source of
Any waiver of an action for future obligation
fraud is void. (1102a) (1) Contractual negligence (culpa
refers to incidental fraud w/c is employed in contractual) – negligence in contracts
the fulfillment of an obligation. resulting in their breach. Negligence is not a
Incidental fraud – fraud at the time of the source of obligation but rather the contract
performance of the obligation that was entered bet the parties.
Responsibility is demandable in all (2) Civil negligence (culpa aquiliana) –
obligations arising from fraud, you can negligence itself is the source of the
demand for payment for damages. If the obligation. Also called “tort or quasi-delict”.
basis for damages is fraud, the court is not (3) Criminal negligence (culpa criminal) –
given the power to mitigate or reduce the negligence resulting in the commission of a
damages because in fraud there is bad faith crime. The negligent act causing damages
unlike negligence. may produce civil liability or create an action
Waiver – renunciation of right for quasi-delict.
Waiver of an action for future fraud is Ex. Driver of a taxi. (Reckless imprudence –
void. It encourages commission of fraud. To criminal act)
commit acts of bad faith. You can have all three as basis if they are
Waiver of action for past fraud is valid. connected in the same act but you can claim
Because it already happened, considered as only once. Under Art. 2177 of Civil code, it is
an act of generosity. Renounced: the effect of prohibited to recover twice for the same
the fraud, the right to indemnity of the party negligent act.
entitled. When the plaintiff’s own negligence was the
Note: Waiver should be voluntarily signed to immediate and proximate cause of his injury,
be valid. The signee should understand what he cannot recover damages. If his negligence
he/she enters into. is contributory, the immediate and proximate
Art. 1172 Responsibility arising from cause of the injury being the defendant’s
negligence in the performance of lack of due care, the plaintiff may recover
every kind on obligation is also damages but the court shall mitigate the
demandable, but such liability may be damages to be awarded.
regulated by the courts, according to **To be entitled to damages, it is not
the circumstance. required that the negligence of the
Unlike fraud, if there is negligence, the court defendant should be the sole cause of the
may reduce the damages depending upon damage.
the circumstances of each case because Art. 1173 The fault or negligence of
there is no bad faith, no intent to commit this the obligor consists in the omission of
act. that diligence w/c is req’d by the
Negligence is not as serious as fraud nature of the obligation and
because there is no deliberate intention to corresponds w/ the circumstances of
cause injury or damages. the person, of the time and of the
Past negligence, can be subject to waiver. place. When negligence shows bad
An action for future negligence may be faith, the provisions of arts. 1171 and
renounced, as long as it is not considered 2201, par 2, shall apply.
fraud, reckless that would cause damage to If the law or contract does not state
other person, not covered by those requiring the diligence w/c is to be observed in
extraordinary diligence, may be subject to the performance, that w/c is expected
of a good father of a family shall be
req’d. Fortuitous event – event cannot be foreseen,
Fault or negligence – the failure to observe or which though foreseen, is inevitable.
for the protection of the interests of another, Impossible to foresee or impossible to avoid.
that degree of care, precaution and vigilance Essence: consists of being a happening
whereby other person suffers injury. independent of the will of the debtor and w/c
Factors makes the normal fulfillment of the
(1) Nature of obligation obligation.
(2) Circumstances of the person Fortuitous event – Act of man (murder,
(3) Circumstance of time war, fire…)
(4) Circumstances of place
Force majeure – act of God (earthquake,
In contracts and quasi-contracts, the dames
calamities…)
for w/c the obligor who acted in good faith is
Under oblicon, they are identical. Both are
liable shall be those that are the natural and
independent of the will of the obligor.
probable consequences of the breach and
Kinds of Fortuitous events
w/c the parties have foreseen or could have
(1) ordinary fortuitous event – common,
reasonably foreseen at the time the
could reasonably foresee (rain, floods
obligation was constituted.
in davao)
In case of fraud, bad faith, malice or wanton (2) extra-ordinary fortuitous event –
attitude, the obligor shall be responsible for uncommon, could not have possibly
all damages w/c may be reasonably foreseen (earthquake, war, pestilence)
attributed to the non-performance of the Requisites:
obligation. (1) event must be independent of the
Ex. B suffered a heart attack and was human will or at least of the debtor’s
hospitalized for 5 days because of the breach will
by S resulting to loss of 5000 profit and this (2) event could not be foreseen and if
angered the former. If S acted in good faith, foreseen, inevitable
the damage w/c B ought to receive should be (3) event must of such a character as to
the amount of 5000, the profit w/c B failed to render it impossible for the debtor to
realize. comply w/ in a normal manner
If S acted in bad faith, he is also liable to pay (4) the debtor must be from any
for the hospitalization expenses w/c clearly participation in the aggravation or
originated from the breach. injury to the creditor, no negligence in
Kinds of Diligence (hierarchy) the part of the debtor.
(1) Agreement In the absence of any requisites would
(2) in the absence of agreement, required prevent the obligor from being exempt from
by law in the particular case liability.
(3) in the absence of agreement and law, Mere pecuniary inability or poverty, is not an
the diligence of a good father of a excuse for non-fulfillment of the obligation.
family Neither is mere difficulty to foresee an event;
Art. 1174 Except in cases expressly it is different from the impossibility to
specified by the law, or when it is foresee. The event must be unforeseeable or
otherwise declared by stipulation, or if foreseen, must be impossible to avoid.
when the nature of the obligation General rule: A person is not responsible for
requires the assumption of risk, no loss or damage caused to another resulting
person shall be responsible for those from fortuitous event, his obligation is
events w/c could not be foreseen, or extinguished.
w/c though foreseen, were inevitable. Exceptions: (1) when expressly defined
by law.
 (a) When there is fraud, negligence or (3) When the nature of the obligation
contravention of the tenor (1170, requires the assumption of risk
1165) Risk of loss or damage is an essential
(b) The debtor has promised to deliver element
the same specific thing to 2 or more Art. 1175 Usurious transactions shall
persons who don’t have the same be governed by special laws.
interest Simple loan/mutuum – contract where one of
(c) The obligation to deliver a specific the parties delivers to another upon the
thing arises from a crime condition that the same amt of the same
(d) The thing to be delivered is generic kind and quality shall be paid.
(2) When declared by stipulation Usury -
The intention to make the debtor liable even
in case of fortuitous event must be clearly
expressed