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    Obligations and Contracts: By: Atty. Wilfred Francis B. Martinez

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    Agatha Peter
    This document discusses fortuitous events and transmissibility of rights under obligations and contracts law. It defines fortuitous events as events that cannot be foreseen or avoided. It provides examples of fortuitous events and discusses when an obligor may still be liable even if a fortuitous event occurs. The document also discusses when an accident may be considered a fortuitous event exempting liability. It then explains that rights acquired from obligations are generally transmissible unless the parties agree otherwise or if precluded by law, and provides an example of rights being transmitted from one party to another.

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    Obligations and Contracts: By: Atty. Wilfred Francis B. Martinez

    Uploaded by

    Agatha Peter
    43 views19 pages
    This document discusses fortuitous events and transmissibility of rights under obligations and contracts law. It defines fortuitous events as events that cannot be foreseen or avoided. It provides examples of fortuitous events and discusses when an obligor may still be liable even if a fortuitous event occurs. The document also discusses when an accident may be considered a fortuitous event exempting liability. It then explains that rights acquired from obligations are generally transmissible unless the parties agree otherwise or if precluded by law, and provides an example of rights being transmitted from one party to another.

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    Obligations and contract 1

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    Lecture-5-Ver3Feb2019.pdf

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    This document discusses fortuitous events and transmissibility of rights under obligations and contracts law. It defines fortuitous events as events that cannot be foreseen or avoided. It provides examples of fortuitous events and discusses when an obligor may still be liable even if a fortuitous event occurs. The document also discusses when an accident may be considered a fortuitous event exempting liability. It then explains that rights acquired from obligations are generally transmissible unless the parties agree otherwise or if precluded by law, and provides an example of rights being transmitted from one party to another.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    43 views19 pages

    Obligations and Contracts: By: Atty. Wilfred Francis B. Martinez

    Uploaded by

    Agatha Peter
    This document discusses fortuitous events and transmissibility of rights under obligations and contracts law. It defines fortuitous events as events that cannot be foreseen or avoided. It provides examples of fortuitous events and discusses when an obligor may still be liable even if a fortuitous event occurs. The document also discusses when an accident may be considered a fortuitous event exempting liability. It then explains that rights acquired from obligations are generally transmissible unless the parties agree otherwise or if precluded by law, and provides an example of rights being transmitted from one party to another.

    Copyright:

    © All Rights Reserved
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    Download as pdf or txt
    of 19

    OBLIGATIONS AND

    CONTRACTS
    LECTURE 5
    By: Atty. Wilfred Francis B. Martinez
    NATURE AND EFFECTS OF
    OBLIGATIONS
    Breach of Obligations
    FORTUITOUS EVENTS / CASO
    FORTUITO
    Fortuitous Events
     Article 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 which could not be foreseen, or which,
    though foreseen, were inevitable.
    Fortuitous Events
     What is a fortuitous events?
     Any event which cannot be foreseen, or which, though foreseen,
    is inevitable.
     In other words: Any event which is either impossible to foresee or
    impossible to avoid.

     What are the general causes of a fortuitous event?


    1. Nature (Act of God)
     Storms, Earthquakes, Floods, Epidemics, Lightning, Eruption of
    Volcanos, etc.
    2. Force Majure (Act of Man)
     Invasion, Rebellion, Government Prohibition, Law, Robbery, etc.
    Fortuitous Events
     What are the requisites?
    1. The event must be independent of human will or, at the very
    least, of the will of the debtor;
    2. The event must be unforeseen or unavoidable;
    3. The event must render it impossible for the debtor to fulfill
    his obligation in a normal manner; and
    4. The debtor must be free from any participation in, or
    aggravation, of the injury to the creditor.
    Fortuitous Events
     Notes:
     Like all other discussions on requisites, the absence of any of the
    requisites would not exempt the debtor from liability.
     Mere financial inability or poverty is not an excuse for the non-
    fulfillment of an obligation.
     Mere difficulty to foresee the happening of an event is also not an
    excuse. Impossibility is a requirement for the exemption from
    liability.
    Fortuitous Events
     Case Study of the Requisites:
     Mr. Benjamin obligated himself to deliver 1000 sacks of
    Vietnamese rice to Mr. Juan Dela Cruz on 1 November 2017. The
    rice will be imported from China. Mr. Benjamin’s obligation was to
    deliver said rice on or before 1 January 2018.
     On 1 December 2017, due to the fear of fake or counterfeit rice
    entering the Philippines, the Food and Drugs Administration issued
    a regulation prohibiting the importation of rice from China for 1
    year (until 1 December 2018).
     On the date due, Mr. Dela Cruz demanded that Mr. Benjamin
    comply with his obligation. Mr. Benjamin refused citing the new
    regulation.
     Mr. Dela Cruz claims that Mr. Benjamin is in delay. Mr. Benjamin
    claims that he is free from liability due to a fortuitous event. Who
    is correct?
    Fortuitous Events
     Case Study of the Requisites (cont’d):
    1. The event must be independent of human will or, at the very
    least, of the will of the debtor;
     The new regulation prohibiting rice from China is outside of the control
    of Mr. Benjamin.
    2. The event must be unforeseen or unavoidable;
     Neither party was able to foresee the new regulation. Additionally, even
    if they were able to predict it, they would not have had any power to
    prevent it from happening.
    3. The event must render it impossible for the debtor to fulfill his
    obligation in a normal manner; and
     Due to the new regulation, Mr. Benjamin cannot legally comply with his
    obligation.
    4. The debtor must be free from any participation in, or
    aggravation, of the injury to the creditor.
     Based on the facts, Mr. Benjamin had nothing to do with the prohibition
    of rice importation from China.
    Fortuitous Events
     Are there cases wherein the obligor / debtor can still be
    held liable even if there was a fortuitous event? YES!
    1. Where such liability is expressly provided by law.
     Example: Article 552: A possessor in bad faith will always be liable
    for damage or deterioration even if it is due to a fortuitous event;
    2. If the parties stipulated that liability will still attached
    regardless of whether or not the non-performance was due to a
    fortuitous event;
    3. Where the nature of the agreement of the parties requires an
    assumption of risk.
     Example: X promises to deliver to B a shipment of goods from two
    countries with the knowledge that both countries may declare war
    from each other due to the political climate.
     Other example: Workmen’s Compensation Act;
    Fortuitous Events
     Are there cases wherein the obligor / debtor can still be
    held liable even if there was a fortuitous event? YES!
    4. Where the object of the obligation is generic or indeterminate;
    5. Where the loss of the object of the obligation happened after
    the debtor has already incurred in delay;
    6. Where the debtor has promised to deliver the same thing to
    two or more persons who do not have the same interest; and
    7. When the obligation to deliver arises from a criminal offense.
    Fortuitous Events
     Can an accident be considered as a fortuitous event?
     Yes but only if: (1) the accident is unavoidable; (2) the
    negligence cannot be attributed to the obligor / debtor.

     Case Studies:
     Roberto Sicam vs Lulu Jorge (G.R. No. 159617, 8 August 2007)
     Fil-Estate Properties, Inc. vs Spouses Go (G.R. No. 185798, 13
    January 2014)
    Fortuitous Events (SW7)
     On the morning of April 1, 1946, X, was a riding the early morning
    train of the Railroad Company from Laguna to Manila;
     That when the train reached the Paco Railroad station, Y, a train
    guard of the Railroad Company assigned in the Manila-San Fernando,
    La Union Line, happened to be in said station waiting for the same
    train which would take him to Tutuban Station, where he was going to
    report for duty;
     That Y had a long standing personal grudge against X, same dating
    back during the Japanese occupation;
     That because of this personal grudge, Y shot X with the carbine
    furnished to him by the Railroad Company for his use as such train
    guard, upon seeing him inside the train coach. X died instantly;
     The wife of X claims that the Railroad Company is liable for damages.
    The Railroad Company counters that they are free from liability
    because it was a Fortuitous Event or Caso Fortuito. WHO IS
    CORRECT? (4 Points)
    Fortuitous Events (SW7)
     ANSWER:
     Cornelia De Gillaco vs Manila Railroad Company (G.R. No. L-
    8034, 18 November 1955)
     The Court ruled that the situation can be considered as a
    Fortuitous Event, Manila Railroad cannot be held liable since:
    1. The Railroad company had no means to ascertain or anticipate that
    the two rivals would meet;
    2. The Railroad company could not be expected to foresee or would
    have known about the personal lives of each of their employees; and
    3. The Railroad company could not be expected to foresee any
    animosity or rancor between its employees and its thousands of
    passengers every single day.
    Transmissibility of Rights
    Transmissibility of Rights
     Art. 1178. Subject to the laws, all rights acquired in
    virtue of an obligation are transmissible, if there has
    been no stipulation to the contrary.
    Transmissibility of Rights
     General Rule:
     All rights acquired through an obligation is transmissible to
    another person.
     Exception:
    1. If the parties stipulate in their contract that the rights acquired
    by a party (or both parties) is non-transmissible.
    2. If the nature of the obligation prevents transmissibility.
     Example: Service of a prison sentence or any other criminal penalty
    imposed by a court of law.
    3. Where they are non-transmissible by operation of law.
    Transmissibility of Rights
     Example of a Right Being Transmitted:
     X lent money to Y in the amount of P1,000.
     X has the right to collect the P1,000.00 from Y as soon as it becomes
    due and demandable.
     X, however, owes A and B, P500.00 each.
     X has an obligation to pay back A and B, P500.00 each.
     Thus, X can tell A and B to collect P500.00 each from Y.
     In this situation, X is transmitting his right to collect the debt of Y to A
    and B.
    Thank you.
     Please prepare for LONG EXAM #1 next meeting.
     100 items.
     Coverage: INTRODUCTION TO LAW until
    TRANSMISSIBILITY OF RIGHTS

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