ART. 1099. The provisions of the second paragraph of the preceding article shall also be observed when the obligation consists in not doing and the debtor should do what he has been forbidden.

ART. 1100. Persons obliged to deliver or to do something are in default from the moment when the creditor demands the fulfillment of their obligation, judicially or extrajudicially.

However, the demand of the creditor, in order that default may exist, shall not be necessary—

1. If the obligation or law declares it expressly. 2. If by reason of its nature and circumstances it may appear that the fixing of the period within which the thing was to be delivered or the service rendered was a determinate cause to constitute the obligation.

In mutual obligations none of the persons bound shall incur default if the other does not fulfill or does not submit to properly fulfill what is incumbent upon him. From the time one of the persons obligated fulfills his obligation the default begins for the other party.

ART. 1101. Those who in fulfilling their obligations are guilty of fraud, negligence, or delay, and those who in any manner whatsoever act in contravention of the stipulations of the same, shall be subject to indemnify for the losses and damages caused thereby.

ART. 1102. Liability arising from fraud is demandable in all obligations. The renunciation of the action to enforce it is void.

ART. 1103. Liability arising from negligence is also demandable in the fulfillment of all kinds of obligations; but it may be mitigated by the court, according to the case.

ART. 1104. The fault or negligence of the debtor consists of the omission of the steps which may be required by the character of the obligation, and which may pertain to the circumstances of the persons, time, and place.

Should the obligation not state what conduct is to be observed in its fulfillment, that observed by a good father of a family shall be required.

ART. 1105. No one shall be liable for events which could not be foreseen, or which having been foreseen were inevitable, with the exception of the cases expressly mentioned in the law or those in which the obligation so declares.

ART. 1106. Indemnity for losses and damages includes not only the amount of the loss which may have been suffered, but also that of the profit which the creditor may have failed to realize, reserving the provisions contained in the following articles:

ART. 1107. The losses and damages for which a debtor in good faith is liable, are those foreseen or which may have been foreseen, at the time of constituting the obligation, and which may be a necessary consequence of its nonfulfillment.

In case of fraud, the debtor shall be liable for all those which clearly may originate from the nonfulfillment of the obligation.

ART. 1108. Should the obligation consist in the payment of a sum of money, and the debtor should be in default, the indemnity for losses and damages, should there not be a stipulation to the contrary, shall consist in the payment of the interest agreed upon, and should there be no agreement, in that of the legal interest.

Until another rate is fixed by the government,

interest at the rate of 6 per cent per annum shall be considered as legal.

ART. 1109. Interest due shall earn legal interest from the time it is judicially demanded, even if the obligation should have been silent on this point.

In commercial transactions the provisions of the code of commerce shall be observed.

Pawn shops and savings banks shall be governed by their special regulations.

ART. 1110. A receipt from a creditor for the principal, without any stipulation regarding interest, extinguishes the obligation of the debtor with regard thereto.

The receipt for the last installment of a debt, when the creditor has made no reservation, shall also extinguish the obligation with regard to the previous installments.

ART. 1111. Creditors, after having attached the property of which the debtor may be in possession, in order to collect all that is due them, may exercise all the rights and actions of the latter for the same purpose, excepting those inherent in his person; they may also impugn the acts which the debtor may have performed in fraud of their right.

ART. 1112. All the rights acquired by virtue of an obligation are transmissible, subject to law, should there be no stipulation to the contrary.

CHAPTER III.

DIFFERENT KINDS OF OBLIGATIONS.

SECTION 1. PURE AND CONDITIONAL OBLIGATIONS. ART. 1113. Every obligation, the fulfillment of which should not depend upon a future or uncertain

event or upon a past event, unknown to the parties in interest, shall be immediately demandable.

Every obligation, containing a condition subsequent, shall also be demandable without prejudice to the effect of the performance.

ART. 1114. In conditional obligations, the acquisition of rights, as well as the extinction or loss of those already acquired, shall depend upon the event constituting the condition.

ART. 1115. If the fulfillment of the condition should depend upon the exclusive will of the debtor, the conditional obligation shall be void. If it should depend upon chance or upon the will of a third person, the obligation shall produce all its effects in accordance with the provisions of this code.

ART. 1116. Impossible conditions, those contrary to morality, and those forbidden by law, shall annul the obligation depending upon them.

The condition of not doing a thing which is impossible is considered as not imposed.

ART. 1117. The condition that a certain event shall happen within a fixed period, shall extinguish the obligation from the time the period lapses or when there is no doubt that the event will not take place.

ART. 1118. The condition that a certain event shall not occur within a fixed period shall render the obligation binding from the time the period fixed elapses, or when it becomes evident that such event can not occur.

Should there not be a fixed period, the condition shall be considered as fulfilled within the time which would probably have been fixed, in view of the nature of the obligation.

ART. 1119. The condition shall be considered

as fulfilled when the obligated party should voluntarily prevent its fulfillment.

ART. 1120. The effects of a conditional obligation to give after the condition has been fulfilled shall retroact to the day on which it was constituted. Nevertheless, if the obligation should impose mutual prestations on the parties concerned, the fruits and interest for the time during which the condition has been pending shall be understood as compensating each other. Should the obligation be unilateral, the debtor shall become the owner of the fruits and interest collected, unless by reason of the nature and circumstances of the obligation it must be inferred that the will of the person constituting it was otherwise.

In the obligations of doing or of not doing, the courts shall determine in each case the retroactive effect of the condition fulfilled.

ART. 1121. The creditor may, before fulfilling the conditions, enforce the actions which may be proper for the preservation of his right.

The debtor may recover what he may have paid during the same period.

ART. 1122. Should the conditions be established for the purpose of suspending the efficiency of the obligation to give, the following rules shall be observed in case the thing should improve, or be lost or impaired while the condition is pending:

1. If the thing was lost without fault of the debtor, the obligation shall be extinguished.

2. If the thing was lost by the fault of the debtor, he is obliged to make good the losses and damages.

It is understood the thing is lost when it perishes, becomes unsalable, or disappears in such a manner