Interactive Explorer: Obligations and Delays
Use the explorer below to understand the different types of obligations and the concept of delay (mora), which is highly relevant in construction schedules.
Liquidated Damages Calculator
Calculate liquidated damages for project delay (typically 1/10 of 1% of the cost of the unperformed portion per day of delay).
Calculation Result
Torts and Damages
In civil engineering, liability often arises not just from a breach of contract, but from negligence that causes harm to third parties.
Understanding Torts (Quasi-Delicts)
0 of 2 Steps CompletedImportant
Article 1723 of the Civil Code: The engineer or architect who drew up the plans and specifications for a building is liable for damages if within fifteen (15) years from the completion of the structure, the same should collapse by reason of a defect in those plans and specifications, or due to the defects in the ground. The contractor is likewise responsible for the damages if the edifice falls, within the same period, on account of defects in the construction or the use of materials of inferior quality furnished by him, or due to any violation of the terms of the contract.
- A quasi-delict (tort) requires fault or negligence without a pre-existing contract.
- The standard of care is the diligence of a "good father of a family".
- Article 1723 holds engineers liable for 15 years for structural collapse due to defects.
Mora and Damages
Example
Scenario: Mora and Damages
Contractor ABC was supposed to finish a building for Owner XYZ by December 31. On January 15, the building is still unfinished, but Owner XYZ has never formally demanded that Contractor ABC finish the work. On January 16, Owner XYZ demands the building be turned over.
Explanation: Under the Civil Code, a mere delay in time does not automatically constitute legal delay (Mora). The general rule is "No Demand, No Delay." Until Owner XYZ made the demand on January 16, Contractor ABC was not legally in default. Therefore, damages and penalties (like Liquidated Damages) generally start accruing from the time the demand is made, not the target completion date, unless the contract explicitly states that "time is of the essence" and demand is not necessary.
Sources of Obligations & Contracts
Example
Scenario: Defective Contracts - Vitiated Consent
Contractor A threatens Owner B with physical harm if Owner B does not sign a contract awarding the construction of a building to Contractor A. Owner B signs out of fear.
Application: This contract is voidable. The consent of Owner B was vitiated by intimidation. In obligations and contracts, consent must be freely given for a contract to be perfectly valid. Owner B can file a case to annul the contract.