Friday, March 9, 2012

Delay in contract law - G.R. Nos. 180631-33

G.R. Nos. 180631-33

"x x x.


Art.  1169.  Those obliged to deliver or to do something incur in delay from the time the obligee judicially or extrajudicially demands from them the fulfillment of their obligation.

The civil law concept of delay or default commences from the time the obligor demands, judicially or extrajudicially, the fulfillment of the obligation from the obligee.   In legal parlance, demand is the assertion of a legal or procedural right.[43]  Hence, DPCC incurred delay from the time CCP called its attention that it had breached the contract and extrajudicially demanded the fulfillment of its commitment against the bonds. 

It is the obligor’s culpable delay, not merely the time element, which gives the obligee the right to seek the performance of the obligation.  As such, CCP’s cause of action accrued from the time that DPCC became in culpable delay as contemplated in the surety and performance bonds. xxx."