REPUBLIC ACT NO
B. APPLICATION OF PAYMENTS – ARTS 1252-54,
2. LOSS OF THE THING DUE OR IMPOSSIBILITY OF PERFORMANCE
ARTS. 1262-69, 1189, 1174, 1165, 1268, 1942, 1979, 2147, 2159
SECTION 2. - Loss of the Thing Due
Art. 1262.
An obligation
o Which consists in the delivery o Of a determinate thing
Shall be extinguished
If it should be lost or destroyed
Without the fault of the debtor, and
Before he has incurred in delay. When by law or stipulation,
o The obligor is liable o Even for fortuitous events,
The loss of the thing
Does not extinguish the obligation, and He shall be responsible for damages. o The same rule applies when
o The nature of the obligation
Requires the assumption of risk.
Art. 1263. In an obligation to deliver a generic thing,
The loss or destruction Of anything of the same kind
o Does not extinguish the obligation.
Art. 1264. The courts shall determine whether,
under the circumstances,
The partial loss of the object of the obligation Is so important
o As to extinguish the obligation.
Art. 1265.
Whenever the thing is lost
o In the possession of the debtor, It shall be presumed that the loss Was due to his fault,
o Unless there is proof to the contrary, and o Without prejudice to the provisions of article
1165.
This presumption does not apply In case of
o Earthquake, o Flood, o Storm, or
o Other natural calamity.
Art. 1266. The debtor in obligations to do
Shall also be released
o When the prestation becomes o Legally or physically impossible
Without the fault of the obligor.
Art. 1267. When the service has become so difficult
As to be manifestly beyond The contemplation of the parties,
o The obligor may also be released therefrom,
o In whole or in part.
Art. 1268.
When the debt
o of a thing certain and determinate Proceeds from a criminal offense,
o The debtor shall not be exempted from o The payment of its price,
Unless the thing having been offered by him
To the person who should receive it, The latter refused
Without justification to accept it.
Art. 1269. The obligation having been extinguished
By the loss of the thing,
The creditor shall have all the rights of action o which the debtor may have
Against third persons
o By reason of the loss.
Art. 1189.
When the conditions have been imposed o With the intention of
o Suspending the efficacy of an obligation to give,
The following rules shall be observed
In case of the
o Improvement, o Loss or
o Deterioration of the thing
During the pendency of the condition: (1) If the thing is lost
Without the fault of the debtor, The obligation shall be extinguished; (2) If the thing is lost
Through the fault of the debtor, He shall be obliged to pay damages; It is understood that the thing is lost
i. When it perishes, or ii. Goes out of commerce, or
iii. Disappears in such a way that its existence is unknown or it cannot be recovered;
(3) When the thing deteriorates Without the fault of the debtor, The impairment is to be borne by the
creditor; (4) If it deteriorates
Through the fault of the debtor, The creditor may choose between
i. The rescission of the obligation and ii. Its fulfillment,
With indemnity for damages in either case;
(5) If the thing is improved By its nature, or By time,
The improvement shall inure to The benefit of the creditor; (6) If it is improved
At the expense of the debtor, He shall have no other right
Than that granted to the usufructuary.
Art. 1174.
General Rule: No person shall be responsible o For those events
o Which could not be foreseen, or
o Which though foreseen, were inevitable.
Exception: Except in cases
1. Expressly specified by the law, or
2. When it is otherwise declared by stipulation, or
Requires the assumption of risk,
Art. 1165. When what is to be delivered is A determinate thing,
o The creditor,
o In addition to the right granted him by Article 1170*,
o May compel the debtor o To make the delivery.
If the thing is indeterminate or generic, o He may ask that the obligation o Be complied with
o At the expense of the debtor. If the obligor
o Delays, or
o Promised to deliver the same thing to two or more persons who do not have the same interest,
o He shall be responsible for any fortuitous event
o Until he has effected the delivery.
Art. 1268.
When the debt
o of a thing certain and determinate Proceeds from a criminal offense,
o The debtor shall not be exempted from o The payment of its price,
o Whatever may be the cause for the loss, Unless the thing having been offered
by him
To the person who should receive it, The latter refused
Without justification to accept it.
Art. 1942. The bailee is liable for the loss of the thing,
Even if it should be through a fortuitous event:
(1) If he devotes the thing
To any purpose
Different from that
For which it has been loaned; (2) If he keeps it
Longer than the period stipulated, or
After the accomplishment of the use
o For which the commodatum has been constituted;
(3) If the thing loaned has been delivered
General Rule: With appraisal of its value, o Exception: Unless there is a
stipulation
o Exempting the bailee from responsibility
In case of a fortuitous event; (4) If he lends or leases the thing
To a third person,
Who is not a member of his household; (5) If, being able to save either
The thing borrowed or
His own thing,
He chose to save the latter (his own thing).
Art. 1979. The depositary is liable
For the loss of the thing Through a fortuitous event if:
1. It is so stipulated; 2. He uses the thing
Without the depositor's permission; 3. If he delays its return;
4. If he allows others to use it,
Even though he himself may have been authorized to use the same.
Art. 2147. The officious manager
Shall be liable for any fortuitous event: (1)
If he undertakes risky operations Which the owner was not
accustomed to embark upon; (2)
If he has preferred his own interest To that of the owner;
(3)
If he fails to return the property or business
After demand by the owner; (4)
If he assumed the management In bad faith.
Art. 2159. Whoever in bad faith accepts an undue payment,
Shall pay legal interest
o If a sum of money is involved, or
Shall be liable for fruits received or which should have been received
o If the thing produces fruits.
He shall furthermore be answerable
For any loss or impairment of the thing o From any cause, and
For damages to the person who delivered the thing,
3. CONDONATION OR REMISSION OF THE DEBT