What Counts as a Breach of Obligation? (Art. 1170)

Short answer: Under Philippine law, an obligation is breached when the person bound to give, do or not do something is guilty of fraud, negligence or delay in performing it, or “in any manner” contravenes its tenor — that is, fails to perform, performs badly or does what was forbidden (Civil Code, Art. 1170). Each kind of breach makes the debtor liable for damages, unless a fortuitous event or another legal excuse applies.

This guide is the checklist for deciding whether there is a breach at all and what kind it is. It applies to every obligation, not only contracts. Once you know the type of breach, the companion guide on breach of contract: rights, proof and remedies covers how to build the case.

What is an obligation, and where does it come from?

An obligation is “a juridical necessity to give, to do or not to do” (Art. 1156). It can arise from five sources: law, contracts, quasi-contracts, acts or omissions punished by law, and quasi-delicts (Art. 1157). That matters because a breach is always measured against what the obligation actually required, and each source sets that requirement differently:

Contracts have the force of law between the parties and must be complied with in good faith (Art. 1159). The contract terms define what performance means.
Law creates obligations only when the Civil Code or a special law expressly provides for them; they are not presumed (Art. 1158).
Quasi-contracts (such as money paid by mistake) are governed by their own chapter of the Code (Art. 1160).
Crimes carry civil liability governed mainly by the penal laws (Art. 1161).
Quasi-delicts — damage caused by fault or negligence where there is no pre-existing contract — are governed by Art. 2176 and the articles after it (Art. 1162). See contractual liability vs quasi-delict for how the two differ.

The first question is therefore not “did they break a promise?” but “what exactly did the obligation require of them, and by when?” If the obligation was conditional or had a period that has not yet arrived, there may be nothing to breach yet; see kinds of obligations.

What are the four ways to breach an obligation?

Article 1170 names four grounds of liability. They often overlap in one dispute, but each has its own test.

Type of breach	What it means	Everyday example	Key rule
Fraud (dolo)	Deliberate, intentional evasion of the normal performance of the obligation	A seller knowingly delivers a substitute item and hides the switch	Always demandable; a waiver of future fraud is void (Art. 1171)
Negligence (culpa)	Failure to use the diligence the obligation and the circumstances require	A warehouse leaves stored goods exposed to rain	Liability may be regulated by the courts (Arts. 1172–1173)
Delay (mora)	Failure to perform on time after demand, or without demand in the cases the law allows	A contractor misses the agreed completion date after a written demand	Demand generally required (Art. 1169)
Contravention of the tenor	Any other violation of the terms: non-performance, defective or partial performance, or doing what was prohibited	A tenant uses a residential unit as a shop despite a residential-only clause	Liable for damages “in any manner” (Art. 1170); poor work may be undone (Arts. 1167–1168)

Fraud in performance

Fraud under Art. 1170 is fraud in performing an obligation that already exists. It is different from fraud that tricks someone into entering a contract, which can make the contract voidable (Arts. 1338 and 1344). A party in bad faith answers for all damages reasonably attributable to the non-performance, not only those that were foreseeable (Art. 2201, second paragraph), and bad faith is also what opens the door to moral damages in a contract case (Art. 2220). Because Art. 1171 voids any advance waiver of liability for future fraud, a clause saying “the seller is not liable for anything, even fraud” will not protect a dishonest seller.

Negligence: what standard of care applies?

Negligence is “the omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the persons, of the time and of the place” (Art. 1173). If neither the law nor the contract sets a standard, the default is the diligence of a good father of a family — ordinary, reasonable care. Anyone obliged to deliver a thing must take care of it with that diligence until delivery, unless the law or the contract requires another standard (Art. 1163). A contract can raise the standard (for example, a promise of “extraordinary care”), and some special rules impose a higher one by law. If negligence shows bad faith, it is treated like fraud for damages purposes (Art. 1173).

Delay: when does lateness become a breach?

Being late is not automatically legal delay. Under Art. 1169, a debtor obliged to deliver or to do something falls into delay only from the time the creditor demands performance, either in court or out of court. Demand is not needed in three cases:

The obligation or the law expressly says so (for example, a clause that the debtor is in default “without need of demand”).
The time of delivery or service was the controlling motive for the contract — a wedding cake due on the wedding day.
Demand would be useless because the debtor has made performance impossible.

In reciprocal obligations, neither side is in delay if the other has not complied or is not ready to comply; once one side performs, the other’s delay begins (Art. 1169, last paragraph). Delay has a further consequence for obligations to deliver a determinate thing: a debtor in delay bears the risk of a fortuitous event until delivery (Art. 1165). For when delay is serious enough to cancel a contract, see can delay alone be a substantial breach?

Contravention of the tenor

This catch-all covers every other way of not doing what was agreed: delivering the wrong quantity, building with cheaper materials than specified, finishing only part of the job, or doing something the obligation prohibited. If a person obliged to do something fails to do it, or does it contrary to the terms, it can be done at that person’s cost, and poorly done work may be ordered undone (Art. 1167). In an obligation not to do, whatever was done in violation is also undone at the obligor’s expense (Art. 1168). Partial or irregular performance is still a breach: a debt is not paid unless the thing or service is completely delivered or rendered (Art. 1233).

What does not count as a breach?

Before accusing the other side, rule out these common defenses. Each one, if proven, defeats or reduces the claim.

Situation	Why it may not be a breach	Legal basis
Fortuitous event	No liability for events that could not be foreseen or were inevitable, unless the law, the contract or the nature of the obligation places the risk on the debtor	Art. 1174
Obligation not yet due	A suspensive condition has not happened or the period has not arrived	Arts. 1179–1198
No demand yet	Lateness without demand is generally not legal delay, unless an exception applies	Art. 1169
Creditor did not perform first	In reciprocal obligations, a party not ready to comply cannot hold the other in delay	Art. 1169, last paragraph
Defective performance accepted	A creditor who knowingly accepts incomplete or irregular performance without protest is deemed fully paid	Art. 1235
Obligation arose from nothing	An obligation said to come from law exists only if a law expressly creates it	Art. 1158

A fortuitous event excuses the debtor only if the debtor did not contribute to it and was not already in delay. For the full test, see when a fortuitous event excuses performance. If both sides broke the agreement, the first infractor’s liability is equitably reduced, and if it cannot be determined who breached first, the obligation is deemed extinguished and each side bears its own damages (Art. 1192); see what if both parties breach?

What can you recover once there is a breach?

The type of breach shapes the remedy and the size of the claim.

Performance. For a determinate thing, the creditor may compel delivery; for a generic thing, the creditor may have the obligation fulfilled at the debtor’s expense (Art. 1165). For an obligation to do, the work may be done by another at the debtor’s cost (Art. 1167).
Resolution (rescission) of reciprocal obligations. The injured party may choose between fulfillment and rescission, with damages in either case (Art. 1191). Courts generally require a substantial breach; see what counts as a substantial breach.
Actual damages. Only proven pecuniary loss is compensated (Art. 2199), covering both the loss suffered and the profits the creditor failed to obtain (Art. 2200).
Good faith vs bad faith. A debtor in good faith answers only for the natural and probable consequences the parties foresaw or could reasonably have foreseen; a debtor in fraud or bad faith answers for all damages reasonably attributable to the non-performance (Art. 2201).
Moral damages in a contract case require fraud or bad faith (Art. 2220). Temperate damages may be awarded when some loss is certain but its amount cannot be proved (Art. 2224), and nominal damages vindicate a violated right even without loss (Art. 2221).
Penalty clause. If the contract has one, the penalty generally replaces damages and interest, unless the debtor refuses to pay it or acted fraudulently (Art. 1226); courts may reduce an iniquitous penalty (Art. 1229). See penalty clauses.

For worked computations, see how damages are calculated in a civil case.

How long do you have to act?

Source of the obligation	Period to sue	Basis
Written contract	10 years from accrual of the right of action	Art. 1144(1)
Obligation created by law	10 years	Art. 1144(2)
Oral contract	6 years	Art. 1145(1)
Quasi-contract	6 years	Art. 1145(2)
Quasi-delict	4 years	Art. 1146(2)

The period is interrupted by filing in court, by a written extrajudicial demand from the creditor, or by a written acknowledgment of the debt by the debtor (Art. 1155). A written demand therefore does double work: it puts the debtor in delay and interrupts prescription. More detail is in prescription of contract actions.

Your options and what to do next

If you think the other side breached

Pin down the obligation. Write one line stating what was owed, by whom, and by when, with the clause or law it comes from. Confirm it was already due (no pending condition or period).
Classify the breach. Use the four-type table above. Note any facts showing fraud or bad faith, since they change the damages you can claim.
Check your own side. In a reciprocal deal, confirm you performed or were ready to perform. Do not accept defective performance without a written protest (Art. 1235).
Send a written demand. State the obligation, the breach, what you want done (perform, fix, pay or return), and a deadline. Keep proof of receipt. This fixes delay under Art. 1169 and interrupts prescription under Art. 1155. See is a demand letter required?
Try settlement, then barangay conciliation. If both parties are individuals living in the same city or municipality, most civil disputes must first go to the barangay (Lupong Tagapamayapa) before a court case can be filed, under the Katarungang Pambarangay provisions of the Local Government Code (RA 7160). Disputes involving a corporation generally do not go through the barangay.
Choose the court route. For a purely money claim within the small-claims ceiling, small claims is faster and does not allow lawyers to appear for the parties at the hearing; confirm the current ceiling with the Supreme Court or the court clerk, and see how to file a small claims case. For specific performance, rescission or larger claims, an ordinary civil action is needed; compare remedies in specific performance vs resolution vs damages.
Get help if you need it. The Public Attorney’s Office (PAO) assists litigants who qualify under its indigency test.

If you are accused of breaching

Check whether the obligation was due, whether a valid demand was made, and whether the other side performed first.
Gather proof of any fortuitous event, of the other side’s acceptance without protest, or of their own breach.
If you can still perform, offer to do so in writing; if the creditor refuses a proper payment, consider tender and consignation.
Reply to the demand in writing and bring your documents to any barangay hearing. Do not ignore a court summons.

Who must prove what, and where to file

The person claiming a breach carries the burden of proving the obligation, the breach and the resulting loss, and in a civil case must do so by a preponderance of evidence (Rules of Court, Rule 131, Sec. 1 and Rule 133, Sec. 1, as amended in 2019). The burden of proof never shifts, so the accused party who raises payment, a fortuitous event or the other side’s own breach must present evidence of that defense. As for the forum, a case to compel performance or to rescind is generally treated as one incapable of pecuniary estimation and goes to the Regional Trial Court (BP 129, Sec. 19(1)), while a claim for a sum of money goes to the first-level court if it does not exceed ₱2,000,000 and to the Regional Trial Court if it does (RA 11576).

What to bring

The contract, purchase order, receipt or other document showing the obligation, with all amendments
Proof of your own payment or performance
Delivery records, photos, inspection reports or expert findings showing the defect or non-performance
The demand letter and proof of receipt, and any reply
Messages showing deadlines, excuses, admissions or bad faith
Receipts and computations of your losses

First action today: write the one-line statement of the obligation and the date it fell due, then draft a dated written demand that names the type of breach and the remedy you want.

Key takeaways

Article 1170 recognizes four kinds of breach: fraud, negligence, delay and contravention of the tenor of the obligation.
The breach is measured against what the obligation actually required, which depends on its source and terms.
Lateness becomes legal delay only after demand, unless one of the three Art. 1169 exceptions applies.
Fortuitous events, an obligation not yet due, the creditor’s own non-performance and acceptance without protest can defeat a breach claim.
Fraud or bad faith widens the damages a debtor must pay and is needed for moral damages in contract cases.
A written demand puts the debtor in delay and interrupts prescription.

Related: Once you know there is a breach, see remedies for non-payment or non-performance for the remedy that fits each type of obligation.

Frequently asked questions

Is a late payment automatically a breach?

Not as legal delay. A debtor generally incurs delay only after the creditor demands payment, unless the contract or the law says demand is unnecessary, time was the controlling motive, or demand would be useless (Art. 1169).

Can a contract excuse a party from liability for negligence?

A contract may set the standard of care, and courts may regulate liability for negligence according to the circumstances (Arts. 1172–1173). But any waiver of an action for future fraud is void (Art. 1171), and negligence that shows bad faith is treated like fraud.

Is partial performance a breach?

Yes. An obligation is not paid unless the thing or service is completely delivered or rendered (Art. 1233). However, if the creditor accepts incomplete performance knowing it is incomplete and without protest, the obligation is deemed fully complied with (Art. 1235).

Does a typhoon or flood always excuse non-performance?

No. Art. 1174 excuses unforeseeable or inevitable events, but not where the law or the contract places the risk on the debtor or the nature of the obligation requires assuming it. A debtor already in delay in delivering a determinate thing is also liable for fortuitous events until delivery (Art. 1165).

Sources

Sources rechecked as of: October 5, 2026

This article is general legal information, not legal advice for your situation. For advice on a specific dispute, consult a lawyer or the Public Attorney’s Office.

What Counts as a Breach of Obligation Under Philippine Law?