- Statute
- Philippine Civil Code
- Article
- Art. 2200
- Topic
- Actual or Compensatory Damages
- Status
- In force
- Book
- BOOK IV Obligations and Contracts
- Title
- TITLE XVIII DAMAGES
- Chapter
- CHAPTER 2 Actual or Compensatory Damages
- Formerly
- Art. 1106 of the old Civil Code
- Year
- 1949
- Cited by
- A Supreme Court decision
The provision
Indemnification for damages shall comprehend not only the value of the loss suffered, but also that of the profits which the obligee failed to obtain. (1106)
Intellegal Wiki · In plain terms
Damages awarded to an injured party cover not only the actual loss suffered but also the profits or gains the party was prevented from earning. Compensation therefore aims to make the injured party whole for both the money lost and the money that would have been made.
An editorially maintained plain-language explanation of this provision — not legal advice.
Intellegal Wiki · How the courts apply it
In Uy v. Puzon, the Supreme Court held: A partner who fails to contribute the agreed capital, misapplies partnership funds, and ousts a co-partner from management is liable for the co-partner's investments and for unrealized profits (lucrum cessans, Article 2200).
One leading Supreme Court case applying this provision.