Art.

1171 Responsibility arising from

fraud is demandable in all obligations.
Any waiver of an action for future
fraud is void. (1102a)
refers to incidental fraud w/c is employed in
the fulfillment of an obligation.
Incidental fraud fraud at the time of the
performance of the obligation
Responsibility
is
demandable
in
all
obligations arising from fraud, you can
demand for payment for damages. If the
basis for damages is fraud, the court is not
given the power to mitigate or reduce the
damages because in fraud there is bad faith
unlike negligence.
Waiver renunciation of right
Waiver of an action for future fraud is
void. It encourages commission of fraud. To
commit acts of bad faith.
Waiver of action for past fraud is valid.
Because it already happened, considered as
an act of generosity. Renounced: the effect of
the fraud, the right to indemnity of the party
entitled.
Note: Waiver should be voluntarily signed to
be valid. The signee should understand what
he/she enters into.
Art. 1172 Responsibility arising from
negligence in the performance of
every kind on obligation is also
demandable, but such liability may be
regulated by the courts, according to
the circumstance.
Unlike fraud, if there is negligence, the court
may reduce the damages depending upon
the circumstances of each case because
there is no bad faith, no intent to commit this
act.
Negligence is not as serious as fraud
because there is no deliberate intention to
cause injury or damages.
Past negligence, can be subject to waiver.
An action for future negligence may be
renounced, as long as it is not considered
fraud, reckless that would cause damage to
other person, not covered by those requiring
extraordinary diligence, may be subject to

fraud. If there is bad faith, considered

equivalent to fraud. Waiver is void.
Kinds of negligence accdg to source of
obligation
(1)
Contractual
negligence
(culpa
contractual) negligence in contracts
resulting in their breach. Negligence is not a
source of obligation but rather the contract
that was entered bet the parties.
(2) Civil negligence (culpa aquiliana)
negligence itself is the source of the
obligation. Also called tort or quasi-delict.
(3) Criminal negligence (culpa criminal)
negligence resulting in the commission of a
crime. The negligent act causing damages
may produce civil liability or create an action
for quasi-delict.
Ex. Driver of a taxi. (Reckless imprudence
criminal act)
You can have all three as basis if they are
connected in the same act but you can claim
only once. Under Art. 2177 of Civil code, it is
prohibited to recover twice for the same
negligent act.
When the plaintiffs own negligence was the
immediate and proximate cause of his injury,
he cannot recover damages. If his negligence
is contributory, the immediate and proximate
cause of the injury being the defendants
lack of due care, the plaintiff may recover
damages but the court shall mitigate the
damages to be awarded.
**To be entitled to damages, it is not
required that the negligence of the
defendant should be the sole cause of the
damage.
Art. 1173 The fault or negligence of
the obligor consists in the omission of
that diligence w/c is reqd by the
nature
of
the
obligation
and
corresponds w/ the circumstances of
the person, of the time and of the
place. When negligence shows bad
faith, the provisions of arts. 1171 and
2201, par 2, shall apply.
If the law or contract does not state
the diligence w/c is to be observed in
the performance, that w/c is expected
of a good father of a family shall be

reqd.
Fault or negligence the failure to observe
for the protection of the interests of another,
that degree of care, precaution and vigilance
whereby other person suffers injury.
Factors
(1) Nature of obligation
(2) Circumstances of the person
(3) Circumstance of time
(4) Circumstances of place
In contracts and quasi-contracts, the dames
for w/c the obligor who acted in good faith is
liable shall be those that are the natural and
probable consequences of the breach and
w/c the parties have foreseen or could have
reasonably foreseen at the time the
obligation was constituted.
In case of fraud, bad faith, malice or wanton
attitude, the obligor shall be responsible for
all damages w/c may be reasonably
attributed to the non-performance of the
obligation.
Ex. B suffered a heart attack and was
hospitalized for 5 days because of the breach
by S resulting to loss of 5000 profit and this
angered the former. If S acted in good faith,
the damage w/c B ought to receive should be
the amount of 5000, the profit w/c B failed to
realize.
If S acted in bad faith, he is also liable to pay
for the hospitalization expenses w/c clearly
originated from the breach.
Kinds of Diligence (hierarchy)
(1) Agreement
(2) in the absence of agreement, required
by law in the particular case
(3) in the absence of agreement and law,
the diligence of a good father of a
family
Art. 1174 Except in cases expressly
specified by the law, or when it is
otherwise declared by stipulation, or
when the nature of the obligation
requires the assumption of risk, no
person shall be responsible for those
events w/c could not be foreseen, or
w/c though foreseen, were inevitable.

Fortuitous event event cannot be foreseen,

or which though foreseen, is inevitable.
Impossible to foresee or impossible to avoid.
Essence: consists of being a happening
independent of the will of the debtor and w/c
makes the normal fulfillment of the
obligation.
Fortuitous event Act of man (murder,
war, fire)
Force majeure act of God (earthquake,
calamities)
Under oblicon, they are identical. Both are
independent of the will of the obligor.
Kinds of Fortuitous events
(1) ordinary fortuitous event common,
could reasonably foresee (rain, floods
in davao)
(2) extra-ordinary fortuitous event
uncommon, could not have possibly
foreseen (earthquake, war, pestilence)
Requisites:
(1) event must be independent of the
human will or at least of the debtors
will
(2) event could not be foreseen and if
foreseen, inevitable
(3) event must of such a character as to
render it impossible for the debtor to
comply w/ in a normal manner
(4) the debtor must be from any
participation in the aggravation or
injury to the creditor, no negligence in
the part of the debtor.
In the absence of any requisites would
prevent the obligor from being exempt from
liability.
Mere pecuniary inability or poverty, is not an
excuse for non-fulfillment of the obligation.
Neither is mere difficulty to foresee an event;
it is different from the impossibility to
foresee. The event must be unforeseeable or
if foreseen, must be impossible to avoid.
General rule: A person is not responsible for
loss or damage caused to another resulting
from fortuitous event, his obligation is
extinguished.
Exceptions: (1) when expressly defined
by law.

(a) When there is fraud, negligence or

contravention of the tenor (1170,
1165)
(b) The debtor has promised to deliver
the same specific thing to 2 or more
persons who dont have the same
interest
(c) The obligation to deliver a specific
thing arises from a crime
(d) The thing to be delivered is generic
(2) When declared by stipulation
The intention to make the debtor liable even
in case of fortuitous event must be clearly
expressed

(3) When the nature of the obligation

requires the assumption of risk
Risk of loss or damage is an essential
element
Art. 1175 Usurious transactions shall
be governed by special laws.
Simple loan/mutuum contract where one of
the parties delivers to another upon the
condition that the same amt of the same
kind and quality shall be paid.
Usury -