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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
A breach of contract occurs when one party fails to fulfill the obligations agreed upon in the contract, without a valid legal justification. The Civil Code of the Philippines provides protection to the aggrieved party and offers several remedies to enforce or recover what is due. These include invoking the binding force of the contract, demanding fulfillment of the obligation, claiming damages, rescinding the contract in case of substantial breach, and filing a civil action before the proper court.
A breach of contract occurs when one party fails to fulfill the obligations agreed upon in the contract, without a valid legal justification. The following provisions under the Civil Code of the Philippines protect the aggrieved party and provide remedies to enforce or recover what is due.
(1) Invoke the binding force of the contract.
The Civil Code emphasizes in Article 1159 that obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith.
(2) Demand performance or fulfillment of the obligation
The law also explains in Article 1165 that When what is to be delivered is a determinate thing, the creditor, in addition to the right granted him by Article 1170, may compel the debtor to make the delivery. If the thing is indeterminate or generic, he may ask that the obligation be complied with at the expense of the debtor. If the obligor delays, or has promised to deliver the same thing to two or more persons who do not have the same interest, he shall be responsible for any fortuitous event until he has effected the delivery.
(3) Claim damages for breach of contract
Under Article 1170, it is stated that 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.
(4) Rescind the contract if the breach is substantial.
The law clarifies in Article 1191 that the power to rescind obligations is implied in reciprocal ones, in case one of the obligors should not comply with what is incumbent upon him. The injured party may choose between the fulfillment and the rescission of the obligation, with the payment of damages in either case. He may also seek rescission, even after he has chosen fulfillment, if the latter should become impossible. The court shall decree the rescission claimed, unless there be just cause authorizing the fixing of a period.
(5) File a civil action before the proper court.
If amicable settlement or written demand does not result in compliance, you may file a civil action for specific performance or damages under Section 3(a), Rule 1 of the Rules of Court, which states: A civil action is one by which a party sues another for the enforcement or protection of a right, or the prevention or redress of a wrong.
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 09175772207/ 09778050020.
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