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Understanding Breach of Obligation and Remedies
Aug 30, 2024
Lecture on Breach of Obligation and Remedies
Understanding Breach
Definition
: Breach is a failure to comply with obligations without legal reason.
General Remedy
: Damages are the typical remedy.
Damage vs. Damages
:
Damage
: Physical injury or harm.
Damages
: Monetary compensation for injury or harm.
Purpose of Damages
Aim to place the innocent party in the same position had the obligation been performed correctly.
Not intended to improve the party's position beyond the original terms.
Situations for Damages
Damages are applicable in cases involving:
Default
Fraud
Negligence
Contravention of obligation terms
Default
Definition
: Also known as legal delay.
Conditions for Default
:
An obligation exists.
Failure to perform on time.
Demand by creditor and subsequent failure to perform.
Types of Obligations
Unilateral Obligations
:
No default without demand unless specific conditions apply (stipulation, law provision, time is of the essence, or demand is useless).
Reciprocal Obligations
:
Delay occurs when one party is ready to perform and the other is not.
Types of Default
Mora Solvendi
: Debtor's delay or default.
Effects include breach, liability for interest and damages, and liability for loss due to fortuitous events in determinate things.
Demand is not always necessary.
Mora Accipiendi
: Creditor's delay in accepting performance.
Remedies include court consignment.
Compensation Morae
: Delay by both parties.
Results in cancellation of delays, no actionable default, tempered liability, or contract extinguishment.
Fraud
Types
:
Dolo Causante
: Fraud inducing contract formation (grounds for annulment).
Dolo Incidente
: Fraud in performance (grounds for damages).
Waiver of Fraud
:
Waivers for future fraud are void.
Waivers for past fraud are valid as acts of generosity.
Negligence
Definition
: Failure to observe required diligence.
Remedy
: Damages to restore the injured party.
Types
:
Culpa Aquiliana
: Negligence as the source of obligation without a pre-existing contract.
Culpa Criminal
: Negligence leading to a criminal offense.
Culpa Contractual
: Negligence incidental to an existing contract.
Contravention of Obligation
Definition
: Any illicit act preventing the performance of an obligation.
Results in claims for damages.
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