Those who in the performance of their obligations are guilty of fraud, negligence, or delay, or who in any manner contravene the tenor of the obligation, are liable for damages. These are the modes of breaching an obligation. Delay (mora) is the failure to perform on time; it generally requires a demand from the creditor (mora solvendi), unless the law or the obligation expressly so declares, or time is of the essence, in which case delay is automatic. Fraud (dolo) is the deliberate and intentional evasion of the fulfillment of the obligation; liability for future fraud cannot be waived, and a waiver of an action to enforce liability for past fraud is void. Negligence (culpa) is the omission of the diligence required by the nature of the obligation; the required diligence is generally that of a good father of a family unless the law or the parties provide otherwise, and courts may moderate the liability for negligence according to the circumstances. Contravention of the tenor is any other manner of improper performance. A debtor is generally not liable for a fortuitous event, except where the law or the contract provides, or the debtor is in delay or otherwise at fault. When there is breach, the creditor may demand fulfillment or rescission, with damages.
The Modes of Breach
Those guilty of fraud, negligence, or delay, or who otherwise contravene the tenor of the obligation, are liable for damages.
Delay (Mora)
Delay is failure to perform on time; it generally requires a demand (mora solvendi), unless the law/obligation so declares or time is of the essence (then delay is automatic).
Fraud and Negligence
Fraud (dolo) is the deliberate evasion of performance — liability for future fraud cannot be waived. Negligence (culpa) is the omission of the required diligence (generally that of a good father of a family), and courts may moderate it.
Practical Takeaways
- Breach can be by delay, fraud, negligence, or improper performance — all give rise to damages;
- Delay usually needs a demand unless time is of the essence;
- Waiver of future fraud is void, and negligence liability can be moderated.
Frequently Asked Questions
What are the ways to breach an obligation? By fraud (deliberate evasion), negligence (lack of required diligence), delay (failure to perform on time), or otherwise contravening the tenor of the obligation. All make the debtor liable for damages.
When is a debtor in delay? Generally from the time the creditor demands performance (mora solvendi), unless the law or the obligation expressly declares that demand is not needed, or time is of the essence, in which case delay is automatic.
Can liability for fraud be waived? Liability for future fraud cannot be waived, and any waiver of an action to enforce liability for past fraud is void.
Is a debtor liable for a fortuitous event? Generally no, except where the law or the contract provides, or the debtor is already in delay or otherwise at fault when the fortuitous event occurs.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
If you have questions about your rights or options under Philippine law, our firm is available to assist. You may reach us via Viber or WhatsApp, call us at 0995 433 5550, or send an email to vivasnobles@gmail.com. We look forward to hearing from you.