Practice question
An obligor’s contractual nonperformance is proved fraudulent and in bad faith. The obligor insists that only the narrower good-faith foreseeable-loss rule can ever apply. Which is correct?
- Article 2201 separately makes the bad-faith obligor responsible for damages reasonably attributable to nonperformance
- Bad faith removes every causal requirement
- The same narrow rule applies regardless of the article’s second paragraph
- Fraud necessarily earns any amount demanded
- Only criminal court can assess any civil consequence
Legal references
- Civil Code, Article 2201: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/53360
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