Page 16 - Obligations & Contracts Module 1-2

IRREGULARITY OF PERFORMANCE/BREACH

B. Causes “Not Attributable” to Debtor

2. Fortuitous Events

- Event which could not be foreseen, or which though foreseen, were inevitable.

Requirements of Fortuitous Event:

1. The cause of the breach of the obligation must be independent of the will of

the debtor

2. The event must be either unforeseeable or unavoidable

3. The event must be such as to render it impossible for the debtor to fulfill his

obligation in a normal manner

4. The debtor must be free from any participation in, or aggravation of injury to

the creditor

Rules on Fortuitous Event:

1. General Rule – no liability for fortuitous event

2. Exemption to the Rule:

a) when expressly declared by law

( e.g. in bad faith, subject matter is generic, debtor is in delay )

b) when expressly declared by stipulation or contract

c) when nature of obligation requires assumption of risk