Short answer. No. Article 1170 expressly covers fraud, negligence, and delay as independent grounds for damages — you do not need fraud. A party who merely delayed performance without any fraudulent intent is still liable for damages resulting from that delay, as is anyone who contravenes the terms of an obligation in any manner.
What the law says
Those who in the performance of their obligations are guilty of fraud, negligence, or delay, and those who in any manner contravene the tenor thereof, are liable for damages.
Civil Code, Article 1170 — Liability for Fraud, Negligence, Delay. Read the full provision →
Four separate bases for damages
Article 1170 lists four distinct ways a party performing an obligation can become liable for damages: fraud, negligence, delay, and contravening the tenor of the obligation. These are not ranked or dependent on one another. Fraud is the most serious — it involves deliberate deceit — but the statute does not require it. A party who simply slept on their delivery obligation and caused you to lose income is already within the statute's reach under delay alone. The defenses available differ, but the liability itself arises from any one of the four.
Delay as its own ground
Delay — or mora in civil law terminology — occurs when a debtor fails to perform on time and the creditor demands performance. Once the debtor is in delay, they become responsible for the damages that flow from the tardiness: losses the creditor suffered by not having the thing or service when promised, costs incurred in covering the gap, and in some cases even fortuitous events that would otherwise excuse the debtor. The Civil Code treats delay seriously as a breach of the obligation to perform, not as a minor inconvenience that excuses liability.
Contravening the tenor — the catch-all
The final clause — those who in any manner contravene the tenor thereof — is the broadest. It captures performance that is technically on time but defective in quality, incomplete, or delivered in a way that departs from what was agreed. A contractor who finishes a building but uses inferior materials, a supplier who delivers half the ordered quantity, or a service provider who performs in a way that defeats the purpose of the contract can all be reached by this clause. It ensures that creative interpretations of "not fraud" cannot insulate a party who clearly failed to honour what they promised.
What damages you can claim
The type and extent of damages recoverable depend on which ground applies and whether the breach was fraudulent or merely negligent or dilatory. Fraud exposes the defaulting party to a broader range of damages, including foreseeable and some unforeseeable consequences. For negligence and delay, the general rule limits recovery to damages that were foreseen or could have been foreseen at the time the obligation was constituted. In all cases, you must show an actual loss or injury traceable to the breach. A lawyer can help you identify and document the damages that flow directly from the delayed delivery and present them to the court.
Cases citing this provision
These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.
- Sps. Romeo Pajares and Ida T. Pajares vs. Remarkable Laundry and Dry Cleaning, represented by Archemedes G. Solis, G.R. No. 212690, February 20, 2017 — read the decision on LawPhil →
- Camarines Sur Teachers and Employees Association, Inc., represented by its President, Dr. Antonio A, G.R. No. 199666, October 7, 2019 — read the decision on LawPhil →
- Ma. Luisa A. Pineda vs. Virginia Zuñiga Vda. De Vega, G.R. No. 233774, April 10, 2019 — read the decision on LawPhil →
- D.M. Ragasa Enterprises, Inc., vs. Banco De Oro, Inc. (Formerly Equitable Pci Bank, Inc.), G.R. No. 190512, June 20, 2018 — read the decision on LawPhil →