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Art.

1170: 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. Fraud in this provision of the Civil Law equates to the deliberate and intentional evasion of the faithful fulfillment of an obligation. For example, A owes B P5, 000.00. The contract says that the debt is payable on or before November 25, 2013. A day before the debt became due, B reminded A of his obligation. November 25 passed and A deliberately failed to pay his debt by concocting a story. Despite Bs repeated demands days after due date, A still shirked from his obligation to pay. As act could be akin to fraud as he deliberately and intentionally evades his obligation to pay B for As debt. By negligence, we mean the voluntary act or omission of diligence, there being no malice, which prevents the normal fulfillment of an obligation. For example, A promised to B to send pieces of chinawares in exchange of P10, 000.00. Since A will be coming from an island, he has to ride a boat to go to Bs domicile. On the agreed date of delivery, a storm was brewing in. Notwithstanding, A still pursued to deliver the chinawares. Due to the inclement weather, the chinawares were shattered into smithereens on the boat where A was riding. As such, A reasoned that he will not be liable to B as it was attributed to a force majeure. But, in hindsight, A was negligent as he could have postponed the delivery due to the inclement weather. His act of negligence does not exempt him from his obligation, and at the same time, he will be liable for damages to B. Delay in Civil Law is contemplated as the default or tardiness in the performance of an obligation after it has been due and demandable. Although quite similar to fraud, delay lacks the element of deliberate and intentional evasion. For example, A owes B P5,000.00. The debt is due on November 27, 2013. For some reasons, A failed to B on the stipulated due date. As such, B became irate and repeatedly demanded A for the fulfillment of his obligation but to no avail. A, in this scenario, shall be liable to B for damages for depriving B the money he could have had on November 27, 2013. The last condition in the provision means any violation of terms and conditions stipulated in the obligation. For example, A owes B P10,000.00. A stipulation of the agreement states that A shall pay it in five installments for a period of three (3) months. However, A failed to pay it according to the agreement. As such, A is liable to B for damages for he violated a condition stipulated in the obligation.