Article 1169 of the Code
Those obliged to ______________ or to _______________ incur in ______________ from the time the obligee judicially or extrajudicially _______________ from them the ________________________.
Article 1169 of the Civil Code states that
“Those obliged to deliver or to do something incur delay from the time the obligee judicially or extrajudicially demands from them the fulfillment of the obligation
Is demand necessary to incur delay?`
No, delay may exist on the following circumstances:
1. When the law expressly declares
2. When from the nature and the circumstances of the obligation, it appears that the DESIGNATION OF THE TIME when the thing to be delivered or the service is to be rendered was the CONTROLLING MOTIVE for the establishment of the contract.
3. When demand would be useless, as when the obligor has rendered it beyond his power to perform.
When does delay occur in reciprocal obligations?
From the moment the other party fulfills his obligation
In reciprocal obligations, is there delay if the other party cannot perform his obligations?
Not necessarily, according to article 1100a, delay would only begin if the other party fulfills his obligations.
Distinguish Ordinary delay from default or mora
Ordinary delay is the failure to fulfill an obligation while default or mora constitutes the FAILURE TO FULFILL AN OBLIGATION ON TIME, which would then constitute, a BREACH IN THE FULFILLMENT OF THE OBLIGATION.
What are the kinds of delay from default or mora
- Mora solvendi
- Mora accipendi
- Compensatio Morae
Define Mora Solvendi
Mora solvendi is delay on the part of the debtor to fulfill his obligation by reason of a cause imputable to him
What are the requisites for Mora Solvendi?
Mora Solvendi happens when:
1. The debtor fails to fulfill his positive obligation on the date agreed upon;
2. If demand has been made by the creditor
3. and that the debtor fails to fulfill his obligation upon the demand of the creditor
Is judicial demand necessary for a creditor to incur Mora Solvendi on the part of the debtor
No, Mora solvendi can be incurred if the creditor makes a demand for the fulfillment of the obligation whether judicially or extrajudicially, and that the debtor fails to perform his obligations on such demand.
When can the creditor demand for the fulfillment of an obligation?
According to article 1297, a creditor may create a demand if the obligation is already due and demandable and liquidated. Thus, there is no delay if the above requisites are not present before the demand.
When is a debt liquidated?
A debt is liquidated if an amount is known or determinable by inspection of the terms and conditions of relevant documents.
If the creditor fails to furnish a statement of account, does it mean that the debt is unliquidated?
No, according to Selegna Management and Dev Corp vs. United Coconut Planters Bank, it does not by ipso facto result in an unliquidated obligation.
Jurisprudence would further discuss that where the agreement clearly stipulates the amount due and its computation, the amount of total obligation is known or, at the very least, determinable.
What are the effects of Mora Solvendi?
- Debtor shall be guilty of breach of the obligation
- He is liable to pay interest (if obligation is to pay money)
- He is liable for any fortuitous event (if obligation is to deliver determinate thing)
- Also liable for any fortuitous event (if obligation is to deliver generic thing) and be compelled to deliver a thing of the same kind (Art. 163) or held liable for damages.
If Mora Solvendi is incurred and debtor is liable to pay interest, when does interest commence in cases of extrajudicial demands?
In this case, interest shall commence from the filing of the complaint
What happens if the reason for delay in Mora Solvendi is the loss of the determinate thing?
If the debtor can prove that the loss could have resulted in the same even if he was not in default, then the court may equitably mitigate the damages.
Define Mora Accipendi
Mora Accipendi is delay on the part of the creditor without justifiable reason to accept the performance of the obligations
What are the effects of Mora Accipendi?
The following are the effects of Mora Accipendi:
1. Breach of obligation by the creditor
2. creditor is liable for damages (if any) by the debtor
3. He bears the risk of the loss of the thing due (Art. 1162)
4. If the obligation is to pay money, the debtor will not be liable to pay interest from the time of the creditor’s delay
5. The debtor can release himself from the obligation by consignation of the thing or sum due.
If the obligation is to pay money and there is Mora Accipendi, when does interest commence for the debtor?
Accordingly, the debtor may not be liable for interest from the time of the creditor’s delay.
Define compensatio morae
Compensatio morae is the delay of the obligors in a reciprocal obligation.
What happens if the delay of one party is followed by that of the other?
According to article 1192, if the party guilty for the delay cannot be determined, then the contract shall be deemed extinguished and shall bear its own damages
What is the result if the delay of the obligor cancels out the delay of the obligee or vise versa?
There will be no actionable default on the part of both the parties, such that as if neither one is guilty of the delay.
When does delay begin in compensatio morae?
Delay only commences when one party fulfills his obligation and the other party does not. Thus, it won’t necessarily mean that there is delay if one party cannot perform his obligations, as long as the other party has not fulfilled his obligation yet.
Is there delay in negative personal obligation?
No, in obligations to not-to-do, non-fulfillment may take place but delay is impossible. Thus, there is no delay in negative personal obligations.
Is grace period a right or an obligation?
Grace period is a right and not an obligation on the part of the debtor according to Bricktown Dev’t Corp vs. Amor TIerra Dev’t Corp
