1170 - 1177 Flashcards
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.
Simplify: If someone fails to meet their obligations due to fraud, negligence, or delay, or goes against the agreed terms, they must pay for the damages caused.
Example:
Fraud: A seller knowingly sells a car with a hidden engine problem, misrepresenting it as in excellent condition. The buyer discovers the issue only after purchase and incurs repair costs. The seller is liable for damages due to fraudulent misrepresentation.
Negligence: A company hires a painter to paint the office but fails to ensure the painter uses appropriate quality paint. The paint starts peeling off shortly after application, causing damage to the office walls and furniture. The painter is liable for damages due to their negligence in choosing the right materials.
Delay: A supplier is contracted to deliver 500 units of a product by a specific date but fails to do so on time. The delay causes the buyer to miss important sales deadlines, resulting in lost revenue. The supplier is liable for damages caused by their delay in delivery.
1170 (Fraud, negligence, and delay)
Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for future fraud is void.
Example: If someone commits fraud in fulfilling an obligation, they are liable to compensate for it. Additionally, you can’t contract away your right to address fraud if it occurs.
Example: If a contractor falsely promises to use high-quality materials but actually uses cheap ones, you can demand compensation for the fraud. Even if you signed a contract saying you wouldn’t hold them responsible for future fraud, that clause would be invalid.
1171 (No waiving future fraud claims)
Responsibility arising from negligence in the performance of every kind of obligation is also demandable, but such liability may be regulated by the courts, according to the circumstances.
Simplify: If someone is careless and it affects their obligation, they are responsible for any damage caused. However, how much they are responsible for can be decided by the court based on the situation.
Example: If a contractor is negligent in building a house, causing defects, they are liable for the damage. The court will decide how much the contractor needs to pay based on the details of the case.
1172 (Liable for damages due to negligence; courts regulate the extent)
The fault or negligence of the obligor consists in the omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the persons, of the time and of the place. When negligence shows bad faith, the provisions of articles 1171 and 2201, paragraph 2, shall apply.
If the law or contract does not state the diligence which is to be observed in the performance, that
which is expected of a good father of a family shall be required.
Simplify: Negligence is when someone is not careful enough. If they show bad faith, they face stricter consequences. If the rules aren’t clear, they must act as a reasonable person would.
Example: If a mechanic doesn’t fix a car properly and it causes an accident, they are responsible if they were careless or ignored proper procedures. If they acted with bad intent, they face harsher penalties.
1173 (If negligence involves dishonesty, stricter rules apply)
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 which could not be foreseen, or which, though foreseen, were inevitable.
Simplify: You are not responsible for unforeseen or unavoidable events, except when the law specifically says otherwise, or if you agreed to accept the risk, or if the nature of the obligation inherently involves risk.
Example: If a natural disaster destroys your property and you had no way of predicting or preventing it, you are not responsible for the damage. However, if you agreed in your contract to take on such risks, or if the contract explicitly requires you to be responsible for such events, then you might still be held accountable.
1174 (Protected from unforeseen event, unless otherwise stated)
Usurious transactions shall be governed by special laws.
Simplify: Usurious transactions, which involve excessively high-interest rates on loans, are regulated by specific laws designed to control and prevent such practices.
Example: If someone lends money at an interest rate that is much higher than the legal limit, this transaction is subject to special laws that aim to protect borrowers.
1175 ( Usurious transactions)
The receipt of the principal by the creditor without reservation with respect to the interest, shall give rise to the presumption that said interest has been paid. The receipt of a later installment of a debt without reservation as to prior installments, shall likewise raise the presumption that such installments have been paid.
Simplify: Paying the loan principal or a later installment without mentioning prior payments means all previous payments (including interest) are considered settled.
Example: If you repay a loan and the creditor doesn’t say anything about unpaid interest, it is assumed that you have paid all the interest due.
1176 (Interest is already payed when not mentioned)
The creditors, after having pursued the property in possession of the debtor to satisfy their claims, may exercise all the rights and bring all the actions of the latter for the same purpose, save those which are inherent in his person; they may also impugn the acts which the debtor may have done to defraud them.
Simplify: Creditors can use the debtor’s property and legal rights to collect what they’re owed, except for personal rights, and challenge any actions the debtor took to avoid payment.
Example: Imagine Sam owes you $5,000 and is unable to pay. You, as the creditor, can pursue Sam’s assets (like his car or house) to satisfy the debt. If Sam had a car loan with another creditor and sold the car to avoid paying you, you can challenge this sale as fraudulent and try to reclaim the car for yourself.
However, you can’t exercise personal rights of Sam, such as making personal decisions or accessing private information not related to the debt.
1177
Subject to the laws, all rights acquired in virtue of an obligation are transmissible, if there has been no stipulation to the contrary.
Simplify: Rights from an obligation can be transferred to someone else unless the agreement says otherwise.
Example: If you have a right to receive a payment from a job you did, you can transfer that right to someone else (like if you sell that payment right). However, if the agreement says you can’t transfer it, then you must keep it yourself.
1178 (Transferring rights)
Every obligation whose performance does not depend upon a future or uncertain event, or upon a past event unknown to the parties, is demandable at once. Every obligation which contains a resolutory condition shall also be demandable, without prejudice to the effects of the happening of the event.
Simplify:
Immediate Obligations: If there are no future uncertainties or unknown past events, the obligation must be fulfilled immediately.
Conditional Obligations: If the obligation depends on a future condition that could cancel it, you can demand fulfillment now, but keep in mind that the condition might affect it later.
Example:
Conditional Obligation: You agree to sell your bike to a friend, but only if they pass their driving test within a month. Even though the sale depends on passing the test, you can still ask for payment right away. If they don’t pass, you can cancel the sale, but they have already paid.
Immediate Obligation: You purchase a phone from a store, and you must pay $500 at checkout. The payment is due immediately as there are no conditions or future events involved.
1179 (Conditional obligation)
When the debtor binds himself to pay when his means permit him to do so, the obligation shall be deemed to be one with a period, subject to the provisions of article 1197.
Simplify: Once you have the means to pay, you are required to fulfill the obligation. The payment becomes due when you are financially able to make it.
Example: Suppose John agrees to pay Jane $1,000 when he has enough money. If John’s financial situation improves and he now has the funds, he must pay Jane the $1,000. The obligation to pay becomes due as soon as John has the means to do so.
1180 (Pay when able to)
