CIVIL LAW REVIEW II OBLIGATIONS & CONTRACTS

Atty. Crisostomo Uribe - Course Outli e !"e#. $%%&'
"o ell R. A()to * Re#oletos +e ,) il) - Colle(e o- L).

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T4e 4eirs #) re#o3er t4e e5#ess -rom 7. T4is is be#)use t4e /)yme t is ot 3olu t)ry. A filed an action to compel B to fulfill the latter’s obligation to the former, will the action prosper? Not e#ess)rily be#)use i )tur)l )#tio s o #ourt )#tio #) #om/el /er-orm) #e be#)use it is ) )#tio b)se+ o e0uity1 #o s#ie #e ) + )tur)l 2usti#e. N)tur)l obli()tio s )re mi+.)y bet.ee #i3il obli()tio s ) + t4e /urely mor)l obli()tio s. I or+er t4)t t4ere m)y be ) )tur)l obli()tio 1 t4ere must e5ist ) 2uri+i#)l tie !3i #ulum 2uris' .4i#4 is ot /ro4ibite+ by l). ) + .4i#4 i itsel- #oul+ (i3e ) #)use o- )#tio 1 but be#)use o- some s/e#i)l #ir#umst) #es is )#tu)lly .it4out su#4 le()l s) #tio or me) s o- e -or#i ( #om/li) #e by i 3o6i ( t4e i ter3e tio o- t4e #ourt.
Basis: Art. 1423 Obligations are civil or natural. Civil obligations give a right of action to compel their performance. Natural obligations, not being base on positive la! but on e"uit# performance, but after voluntar# fulfillment b# the obligor, the# authori$e the retention of !hat has been elivere or ren ere b# reason thereof. %ome natural obligations are set forth in the follo!ing articles.

I )tur)l obli()tio 1 i- t4e /)yer 3olu t)rily /)i+1 t4e #re+itor 4)s t4e ri(4t to ret)i .4)t 4e 4)s /)i+. T4e test o .4et4er ) )#t is 3olu t)ry is .4et4er t4e /erso 6 e. t4)t t4ey #) ot be #om/elle+ to /)y but o et4eless t4ey /)y. I t4is #)se1 it #oul+ ot be s)i+ t4)t t4e /)yme t is 3olu t)ry be#)use .4e t4e 4eirs /)i+ t4e )mou t o- 1% millio 1 it .)s o ly $ +)ys )-ter t4e +e)t4 o- 81 ) + by t4)t time orm)lly1 t4e 4eirs still +o 9t 6 o. t4e est)te o- t4e +e#e+e t ) + t4)t t4ey .oul+ re#ei3e less. When is an act $oluntary with respect to performance of a natural obligation? It is 3olu t)ry .4e t4e /)yer /)i+ .it4out -r)u+1 t4re)t1 or ) y 3iti)tio bei ( em/loye+. ,ost im/ort) tly1 t4e /)yer 6 e. t4)t 4e is ot #om/elle+ to /)y but t4e /)yer o et4eless /)i+. T4e re)so .4y ) /erso .4o is ot le()lly obli()te+ to /)y1 3olu t)ry /)ys be#)use oCONSCIENCE. A executed a promissory note date (eb& , ))* stating that +, promise to pay X the amount of million, and signed by him-& .o this day /ecember #, "!!), more than ! years had lapsed, may X still reco$er from A? It m)y be i -erre+ t4)t t4e obli()tio is ) /ure obli()tio +em) +)ble )t o #e1 ) + )s su#4 it is +ue ) + +em) +)ble o :eb. 1 1&&;. T4ere-ore t4e )#tio 4)+ )lre)+y /res#ribe+ be#)use more t4) 1% ye)rs 4)+ l)/se+ -rom :eb. $1 1&&;. T4is s#e )rio m)y be )//li#)ble i ) #o tr)#t o- s)le. W4e i- e3er A /)i+ to 8 t4e )mou t o- 1 millio to 7 +es/ite its /res#ri/tio 1 A #) ot re#o3er -rom 8 be#)use su#4 is 4is )tur)l obli()tio 1 /ro3i+e+ it 4)s bee m)+e 3olu t)rily .4i#4 me) s 4e 6 e. t4)t 4e is ot #om/elle+ to /)y but o et4eless /)i+ it. <o.e3er1 .4e t4e #o tr)#t is o e o- lo) )s ) e5)m/le. T4e /erio+ o- /res#ri/tio #) ot set i be#)use ) #o tr)#t o- lo) is i te +e+ to be /)i+ )t some -uture time1 ) + ot +em) +)ble )t o #e. I t4is i st) #e1 resort to .4)t is i te +e+ by t4e /)rties to be t4e +ue +)te is #o trolli ( to +etermi e .4et4er or ot t4e )#tio 4)+ /res#ribe+1 ) + ) y /)yme t t4ere)-ter #o 3erts it -rom #i3il obli()tio to ) )tur)l obli()tio .

What are the conditions necessary for the existence of natural obligation? 1. T4)t t4ere be ) 2uri+i#)l tie bet.ee t.o /erso s. $. T4is tie is ot (i3e e--e#t by l).. What is the distinction between a moral obligation and a natural obligation?
,or)l Obli()tio T4ere is o 2uri+i#)l tie. N)tur)l Obli()tio T4ere is ) 2uri+i#)l tie.

It is ) )#t o- /ure liber)lity It is ) le()l -ul-illme t o- ) .4i#4 s/ri (s -rom bloo+1 obli()tio . )--e#tio 1 or be e3ole #e.

It is .it4i t4e +om)i omor)ls.

It is .it4i t4e +om)i ol)..

X died, his heirs are ABC, ABC paid to Y ! million " days after X’s death, after # months thereafter the heirs are trying to reco$er the excess because the estate is only % million& Can the heirs reco$er the excess of ' million from Y?

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(or a natural obligation to arise does it re0uire that that there is an agreement? Not e#ess)rily. It m)y eit4er be ) .it4 or .it4out ) )(reeme t. W4y> (o -i(ure. When shall natural obligation be con$erted into ci$il obligation? T4e si( i ( o- ) +o#ume t 4)s (e er)lly t4e e--e#t o- #o 3erti ( ) )tur)l obli()tio to ) #i3il obli()tio . T4e si( er re ou #es t4e +e-e se .4i#4 /re3e ts e -or#eme t o- t4e obli()tio 1 .4i#4 #) t4ere)-ter be t4e b)sis o- ) 2u+i#i)l )#tio . T4e /romise to /er-orm ) )tur)l obli()tio is )s e--e#ti3e )s /er-orm) #e itsel-1 ) + #o 3erts t4e obli()tio i to ) #i3il obli()tio . A /res#ribe+ +ebt o- t4e +e#e)se+ mot4er o- t4e +ebtor .)s 4el+ to be ) su--i#ie t #o si+er)tio to m)6e ) 3)li+ ) + e--e#ti3e t4e /romise o- t4e so to /)y t4e s)me ! Vill)roel 3s. Estr)+) ?1 @4il 1;%' Note 4o.e3er1 t4)t /romise to /er-orm must be 3olu t)ry. T4ere-ore1 /)yme t by mist)6e is ot 3olu t)ry ) + m)y be re#o3ere+. O e .4o /)ys ) )tur)l obli()tio belie3i ( it to be #i3il1 +oes ot t4ereby re#o( iAe t4e )tur)l obli()tio B ) + t4ere bei ( o #i3il obli()tio eit4er1 4e #) re#o3er .4)t 4e 4)s /)i+. NoteC @)rti)l /)yme t o- ) obli()tio +oes ot (e er)lly #o 3ert su#4 i to ) #i3il obli()tio 1 t4e /)rt /)i+ #) ot be re#o3ere+ but1 t4e /)rt ot /)i+ #) ot be e -or#e+1 e5#e/t .4e su#4 )tur)l obli()tio is o e t4)t is sub2e#t to r)ti-i#)tio or #o -irm)tio 1 t4e /)rti)l /)yme t #o 3erts it i to ) #i3il obli()tio ! o3)tio or )tur)l obli()tio by /res#ri/tio '1 e5#e/t .4e t4e s)me is #o tr)ry to l).1 mor)ls or /ubli# or+er. Gu)r) ty o- )tur)l obli()tio B .4e #o si+ere+ ) #i3il obli()tio C Ge er)lly1 i /ri #i/le1 ) )tur)l obli()tio #) ot be (u)r) tee+ be#)use t4e li)bility o- t4e (u)r) tor /resu//oses t4)t t4ere must be ) /rior e54)ustio o- t4e /ro/erty o- t4e /ri #i/)l +ebtor1 ) + t4)t t4e +ebtor )-ter /)yi ( #) re#o3er -rom t4e /ri #i/)l +ebtor- ) + bot4 o- t4is #) ot le()lly be +o e .4e t4e obli()tio is )tur)l. <o.e3er1 be#)use o- Art. $%D$ A )tur)l obli()tio m)y be (u)r) tee+. W4)t re)lly 4)//e s is t4)t t4e (u)r) ty o- t4e )tur)l obli()tio #4) (es its #4)r)#ter. W4e t4e +ebtor o--ers ) (u)r) tor -or 4is )tur)l obli()tio 1 4e im/lie+ly )##e/ts t4e #oer#i3e reme+ies to e -or#e t4e (u)r) ty1 ) +

t4ere-ore1 t4e tr) s-orm)tio o- t4e )tur)l obli()tio i to ) #i3il obli()tio . Illi#it obli()tio sC Obli()tio s .4i#4 )re #o tr)ry to mor)ls ) + (oo+ #ustoms +o ot #o stitute )tur)l obli()tio s1 )s su#4 ) y /)yme t #) be re#o3ere+ e5#e/t .4e bot4 )re i /)ri +eli#to1 or .4e o e .)s )t -)ult !see )rts. 1;11 ) + 1;1$'. Art. 1424 &hen a right to sue upon a civil obligation has lapse b# e'tinctive prescription, the obligor !ho voluntaril# performs the contract cannot recover !hat he has elivere or the value of the service he has ren ere . Art. 142( &hen !ithout the )no!le ge or against the !ill of the ebtor, a thir person pa#s a ebt !hich the obligor is not legall# boun to pa# because the action thereon has prescribe , but the ebtor later voluntaril# reimburses the thir person, the obligor cannot recover !hat he has pai . Art. 142* &hen a minor bet!een +1, an 21- #ears of age !ho has entere into a contract !ithout the consent of the parent or guar ian, after the annulment of the contract voluntaril# returns the !hole thing or price receive , not!ithstan ing the fact that he has not been benefite thereb# there is no right to eman the thing or price thus returne . NoteC W4e ) #o tr)#t is ) ulle+ t4e /)rties )re bou + to m)6e mutu)l restitutio . <o.e3er1 .4e t4e (rou + o- ) ulme t is t4e i #)/)#ity o- ) /erso to e ter i to #o tr)#t1 su#4 )s mi ority1 4e is ot bou + to m)6e restitutio e5#e/t to t4e e5te t t4)t 4e .)s be e-ite+. I- t4ere is o be e-it 4e li6e.ise ot bou + to m)6e restitutio . <o.e3er1 4e 4)s ) )tur)l obli()tio to +o so1 ) + 4e m)6e ) restitutio !3olu t)rily' 4e #) ot re#o3er .4)t 4e 4)s +eli3ere+. NoteC T4e mi or #) ot re#o3er .4)t 4e 4)s 3olu t)rily retur e+ .4et4er or ot t4e ot4er /)rty still 4)s it i 4is /ossessio . Art. 142. &hen a minor +bet!een 1, an 21 #ears of age-, !ho has entere into a contract +annulable but not #et annulle - !ithout the consent of the parent or guar ian, voluntaril# pa#s a sum of mone# or elivers a fungible thing +means consumable- in fulfillment of the obligation, there shall be no right to recover the same from the obligee !ho has spent or consume it in goo faith. Ge er)lly .4e ) #o tr)#t is ) ulle+1 t4ere .ill be mutu)l restitutio 1 e5#e/t .4e t4e /)rty .4o e ters i to ) #o tr)#t is ) mi or1 4e is ot bou + to
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)i3e+ i. (oo+ -)it4 o. +1/((aArt. &here. A y retur m)+e by t4e mi or #) be re#o3ere+1 e5#e/t . 1(0(. an !ithout pre1u ice to the provisions of Articles ((/. or from a merchant3s store the provisions of Articles ((/ an 1(0( of this Co e shall be observe .t4e #)se.t4e t4i ( +eli3ere+ is o -#o sum)ble1 t4e +ebtor #) ot re#o3er i. 142.4o 4)s )#te+ i (oo+ -)it41 eit4er be#)use 4e 4)s )lie )te+ it or it 4)s bee lost. Art.1.)#tio . But it shall be a efense to such an action that the seller at an# time before the 1u gment in such action has manifeste an inabilit# to perform the contract of sale on his part or an intention not to perform it. 4f the possessor of a movable lost or !hich the o!ner has been unla!full# eprive . un er a contract of sale.#re+itor est)blis4e+C Belie.56 5( AC. -or /res#ri/tio 4)s e5/ire+.) #l)im +oes ot result i ) y re+u#tio or loss o. +4*4aArt. the price is pa#able on a certain a#. the efen ant voluntaril# performs the obligation. ((/..t4e #o tr)#t.ot timely r)ise+ or /le)+e+ be-ore or +uri ( t4e 4e)ri ( o. after an action to enforce a civil obligation has faile . Art. 2he o!nership of personal propert# also prescribes through uninterrupte possession for eight #ears. an . pa#s a legac# in compliance !ith a clause in the efective !ill. are not applicable. the o!ner cannot obtain its return !ithout reimbursing the price pai therefor. the seller ma# maintain an action for the price although the o!nership in the goo s has not passe . Com/)re+ to Art. Nevertheless.$?1 t4e #o tr)#t is ot yet ) ulle+. 142/ &hen a testate or intestate heir voluntaril# pa#s a ebt of the ece ent e'cee ing the value of the propert# !hich he receive b# !ill or b# the la! of intestac# from the estate of the ecease . +1/*2aArt. Art. as !ell as !ith respect to movables ac"uire in a public sale. U +er t4is )rti#le 4o.564 Art& %)& Actions prescribe by the mere lapse of time fixed by law& 7 )# 8 NoteC T4e mere +el)y i t4e e -or#eme t o. &ith regar to the right of the o!ner to recover personal propert# lost or of !hich he has been illegall# eprive . but one of the intestate heirs.4e t4e #re+itor or obli(ee 4)s s/e t or #o sume+ it i (oo+ -)it4. 1140. NoteC I. the pa#ment shall be vali an cannot be rescin e b# the pa#er.m)6e restitutio o.4e is ot obli(e+ to m)6e restitutio 1 but 4e e3ert4eless retur s t4e s)me1 4e #) o lo (er re#o3er be#)use su#4 is ) )tur)l obli()tio . 1. It must be +e-e si3ely /le)+e+ ot4er.ise it is +eeme+ . 2he o!nership of movables prescribes through uninterrupte possession for four #ears in goo faith.t4e #re+itor t4)t t4e +ebtor 4)s #)/)#ity to +eli3er t4e ob2e#t o. <e #e1 t4e s)me is 3)li+ ) + is e -or#e)ble u less it is set )si+e by #om/ete t #ourt i ) )#tio -or t4)t /ur/ose.ri(4t1 u less t4e /erio+ re0uire+ by l). ma# notif# the bu#er that the goo s are thereafter hel b# the seller as bailee for the bu#er. the pa#ment is effective an irrevocable. 2hereafter the seller ma# treat the goo s as the bu#er3s an ma# maintain an action for the price. has ac"uire it in goo faith at a public sale. &hen. irrespective of eliver# or of transfer of title an the bu#er !rongfull# neglects or refuses to pa# such price. unless the possessor has ac"uire the o!nership b# prescription for a less perio .)s )lre)+y ) ulle+1 but Art. 1132. 2he possession of movable propert# ac"uire in goo faith is e"uivalent to a title. an if the provisions of article 1(/*. <o. the seller ma# maintain an action against him for the price of the goo s. Actions to recover movables shall prescribe eight #ears from the time the possession thereof is lost.)s be e-ite+. he cannot eman the return of !hat he has elivere or the pa#ment of the value of the service he has ren ere . I.t4e t4i ( re#ei3e+ by 4im e5#e/t to t4e e5te t 4e .$E t4e #o tr)#t . . after the settlement of the ebts of the ecease .t4e t4i ( +eli3ere+ is o lo (er i t4e /ossessio o. un er a contract of sale. &here. 1430 &hen a !ill is eclare voi because it has not been e'ecute . +n- .t4e #re+itor . if the# cannot rea il# be resol for a reasonable price. or mar)et.) #i3il obli()tio u +er ) ) ull)ble #o tr)#t. !ithout nee of an# other con ition. Although the o!nership in the goo s has not passe . fourth paragraph. Art. the seller ma# offer to eliver the goo s to the bu#er. @res#ri/tio is o ly ) +e-e se ) + ot ) b)sis ori(4t o. accor ing to Articles 1132. one !ho has lost an# movable or has been unla!full# eprive thereof ma# recover it from the person in possession of the same. 1(/(..e3er1 t4ere is o )tur)l obli()tio #o tem/l)te+ but ) #)se o. an 1133. 1.o. 1234C2. fair. if the bu#er refuses to receive them. the o!nership of the goo s has passe to the bu#er an he !rongfull# neglects or refuses to pa# for the goo s accor ing to the terms of the contract of sale.

etention an <or trial of the plaintiff.#le)r le(isl)tio to t4e #o tr)ry1 ) + . etainer7 Art./res#ri/tio o. But i.t4e true o.2o eman a right of !a#.)#tio 1 ot im/lie+ trust1 t4e )#tio . are !ithout pre1u ice to those specifie in other parts of this Co e.Art. an 1144 to 114. an in special la!s. 5ovables possesse through a crime can never be ac"uire through prescription b# the offen er. 1/. among others specifie else!here in this Co e. !hen the action arises from or out of an# act.t4e )#tio to re#o3er t4e mort()(e +ebt itsel.NoteC A /etitio -or 0uo .8pon an oral contract7 +2. 1133. 1.8pon a "uasi9contract. +nNoteC Limit)tio s u/o t4e ri(4t o. 1141. 114*. ers4i/1 ot4er. !=' :pon a <udgment& 7n8 W4e /ro/erty is re(istere+ i ) ot4er9s )me1 ) im/lie+ or #o stru#ti3e trust is #re)te+ by l). are not e'tinguishe b# prescription: +1. A )#tio b)se o -r)u+ /res#ribe i .)#tio be(i s to ru .?or efamation.ill ot be /resume+ i t4e )bse #e o. !hen there is no special provision !hich or ains other!ise. i -)3or o.ill be b)rre+ )-ter . 6eal actions over immovables prescribe after thirt# #ears.)rr) to /res#ribes i 1 ye)r -rom t4e +)te o. 2his provision is !ithout pre1u ice to !hat is establishe for the ac"uisition of o!nership an other real rights b# prescription. activit#.((. er. +nNo /res#ri/tio s4)ll ru i -)3or o. ers or #o-4eirs so lo ( )s 4e e5/ressly or im/lie+ly re#o( iAe t4e #oo. 114. 1142. Art. ye)rs +ue to ) i 2ury to t4e ri(4ts o. Art.a! inclu ing the arrest. 2he follo!ing actions must be commence !ithin si' #ears: +1.t4e title. 114/. 11(0. or con uct of an# public officer involving the e'ercise of po!ers or authorit# arising from 5artial .. 24. 2he follo!ing actions must be file !ithin one #ear: +1.)s se/)r)te+ -rom 4is em/loyme t -or u 2usti-i)ble #)use it /res#ribes i . shall be counte from the a# the# ma# be brought.t4e (o3er me t to )ssess ) + #olle#t t)5es . ye)rs. er or #o 4eir )()i st 4is #o-o. 114. 2he follo!ing rights. 1143.. +1/*3Art. Art.)#tio )##rues1 ) + t4e )#tio #) be le()lly i stitute+B -rom t4)t mome t1 t4ere-ore1 t4e /erio+ o.#ear.t4e /l)i ti--.4)s /res#ribe+1 t4e )#tio to re#o3er t4e i terest must )lso /res#ribe+. +As amen e b# => No. +nArt.t4e title to t4e ri(4t-ul o. in the Co e of Commerce. A mortgage action prescribes after ten #ears. Art& **& . 7"8 :pon an obligation created by law. 2he follo!ing actions must be institute !ithin four #ears: +1.he following actions must be brought within ten years from the time the right of action accrues9 7 8 :pon a written contract.-r)u+ 4)s bee #ommitte+1 ) + t4is is t4e b)sis o. +1/*4aI. regulate in Article *4/7 !$' 2o bring an action to abate a public or private nuisance.0. ye)rs -rom +is#o3ery o.) #o-o. Art. >ec. T4e )#tio -or re#o 3ey) #e o. All other actions !hose perio s are not fi'e in this Co e or in other la!s must be brought !ithin five #ears from the time the right of action accrues.4e t4e /l)i ti-. er /res#ribes i te ye)rs -rom t4e issu) #e o. +nArt.4ere t4e (o3er me t 4)s ot by e5/ress st)tutory /ro3isio /ro3i+e+ ) limit)tio u/o its ri(4t to )ssess u /)i+ t)5es1 su#4 ri(4t is im/res#ri/tible.?or forcible entr# an +2. +1/(*a- Art. the same must be brought !ithin one +1.ouster but .ise )#0uisiti3e /res#ri/tio m)y set i . +1/*/T4e mome t t4e ri(4t or +uty o##urs1 t4e t4e ri(4t o. 2he limitations of action mentione in Articles 1140 to 1142. 2he time for prescription for all )in s of actions. 114(.t4e -r)u+. +n- D .8pon an in1ur# to the rights of the plaintiff7 +2.8pon a "uasi9 elict7 :o!ever.

who is the acti$e sub<ect. Ri(4ts ) + obli()tio s )re +i--ere t m)tters. NoteC T4e e5ti #ti3e /res#ri/tio is i terru/te+ ./res#ri/tio i obli()tio s .it4 i terest ru s o ly -rom t4e l)st /)yme t o.re t.W4e ) obli()tio is sub2e#t to ) sus/e si3e #o +itio 1 /res#ri/tio ru s o ly -rom t4e 4)//e i ( o.it4out +)te o. +1/. 11(3. 2he perio uring !hich the obligee !as prevente b# a fortuitous event from enforcing his right is not rec)one against him.t4e /erio+ -i5e+ by l).t4e /4r)se F2uri+i#)l e#essityG What are the essential elements of obligation? 1. 11((.2Art.)i3e+B but ) ri(4t m)y be e5er#ise+ or ot.4i#4 . What is the determining factor that the definition under Art& ># is a ci$il obligation? Be#)use o. @)ssi3e sub2e#t !+ebtor' .s it correct to say that the definition is not accurate. 2he prescription of actions is interrupte !hen the# are file before the court.1Art. +nArt.. What is an obligation? Obli()tio is ) 2uri+i#)l e#essity to (i3e1 to +o1 or ot to +o !Art.4e t4e li)bility -or t4e u /)i+ b)l) #e o.t4e le)se to t4e lessee.t4e #o +itio . in the sense that there must be another prestation which is not to gi$e aside from to gi$e.0aNoteC T4e /erio+ o. T4e obli()tio /ert)i s to t4e +ebtor ) + ri(4t /ert)i s to t4e #re+itor. W4e /ri #i/)l obli()tio is ot yet +ue1 /)yme t o. . Art. 11(4.n a contract of lease.+eli3ery o.m)turity1 or ) ote is /)y)ble o +em) +1 /res#ri/tio be(i s to ru -rom t4e +)te t4e ote or obli()tio ) + ot -rom +em) +1 e5#e/t . 2he perio for the action arising from the result of the accounting runs from the ate !hen sai result !as recogni$e b# agreement of the intereste parties.t4e /ro/erty or /)yme t o. to do or not to do? T4e +e-i itio is )##ur)te. Art. I t4e +eli3ery o. 11DE'./ert)i s to t4e +ebtor si+e1 4e #e it is /ro/er. 2he perio for prescription of actions to eman accounting runs from the a# the persons !ho shoul ren er the same cease in their functions.) #or/or)tio 1 4ere t4e li)bility o. T4e obli()tio i #lu+es ot to +o. 11(2.i terest1 is )//li#)ble o ly to #)ses . . T4e -ormer is obli(e+ to +eli3er t4e /ro/erty sub2e#t o. !hen there is a !ritten e'tra1u icial eman b# the cre itors. t4e /res#ri/ti3e /erio+. 2he time for the prescription of actions !hich have for their ob1ect the enforcement of obligations to pa# principal !ith interest or annuit# runs from the last pa#ment of the annuit# or of the interest.4ere t4e /ri #i/)l +ebt is )lre)+y +ue. the passi$e sub<ect? Si #e it is #o si+ere+ ) re#i/ro#)l obli()tio !bil)ter)l #o tr)#t'1 bot4 t4e lessee ) + t4e lessor m)y be #o si+ere+ t4e /)ssi3e or )#ti3e sub2e#ts1 +e/e +i ( o t4e )s/e#ts o. +1/. A obli()tio m)y ot be . $. =. A#ti3e sub2e#t @)ssi3e sub2e#t Huri+i#)l tie !3i #ulum 2uris' @rest)tio Who are the sub<ects of an obligation? 1. 2he perio for prescription of actions to eman the fulfillment of obligation eclare b# a 1u gment commences from the time the 1u gment became final. A /erso .s the definition defecti$e because it only pertains to the debtor side and it lac=s the <uridical relation in its entirety? T4e +e-i itio is ot +e-e#ti3e. T4e . A#ti3e sub2e#t !#re+itor' $. an !hen there is an# !ritten ac)no!le gment of the ebt b# the ebtor.4o 4)s ) ri(4t #) #om/el t4e ot4er1 but 4e #) ot be #om/elle+ to /er-orm 4is ri(4t./res#ri/tio 1 .t4e /ro/erty to t4e lessor is t4e /)ssi3e sub2e#t ) + t4e lessee is t4e )#ti3e sub2e#t. E .) subs#ri/tio to s4)res o.i terest )t sti/ul)te+ i ter3)ls +oes ot #)use t4e ru i ( o.ill #omme #e o ly )-ter t4e m)turity o.or+ obli()tio itsel.+ire#tors1 ) + t4ere-ore1 /res#ri/tio ..oul+ ru o ly -rom su#4 +em) +./erio+ o.4e t4e #re+itor m)+e ) +em) + be-ore t4e l)/se o. A 3erb)l +em) + u/o t4e +ebtor is ot su--i#ie t to i terru/t or re e. W4ere t4e obli()tio is .+ebt. ot to (i3e . 11(1. +1/.t4e subs#riber +oes ot )rise u til #)ll or +em) + -or /)yme t by t4e bo)r+ o.

s there an instance where a right and an obligation pertain to the same person? 7es t4ere )re is ) i st) #e . T4ere-ore1 t4e #re+itor9s i terest ee+ ot be e#o omi# or /)trimo i)lB it m)y be se time t)l1 mor)l or i+e)l. u il)ter)l )#ts !#rimes or 0u)si-+eli#ts' What obligation has no <uridical tie? . 4hould an obligation and a right co?exist? 7es.+em) + i .riti (. b.S)(r)+) Or+e 3s.someo e 4)s ) obli()tio somebo+y is (oi ( to 4)3e ) ri(4t. It is . who is the acti$e and the passi$e sub<ect? I ) #o tr)#t o. What are the re0uisites of prestation or ob<ect? 1.re t to t4e lessor.ill .t4e obli()tio ./ure liber)lity .n a contract of sale. bil)ter)l )#ts #.ill be o #om/ulsio .it4i t4e +om)i omor)ls.4et4er it is -or /)yme t o. T4e t4i ( is ot t4e ob2e#t o. It must be +etermi )te1 or )t le)st +etermi )ble )##or+i ( to /re-est)blis4e+ eleme ts or #riteri)B ) + =.t4e +ebtor. l).t4e )mou t o. A obli()tio ) + ) ri(4t )re t.t4e obli()tio 1 t4ere ./)trimo i)l 3)lue./)yme t1 t4e lessee is t4e /)ssi3e sub2e#t1 ) + t4e lessor is t4e )#ti3e sub2e#t.4et4er it is ) obli()tio to (i3e1 to +o or ot to +o.)it1 ) + let t4e /res#ri/tio ru i -)3or o.4ere ) obli()tio ) + ) ri(4t /ert)i to t4e s)me /erso 1 su#4 t4)t t4e /erso )#0uire+ su#4 ri(4t )s i t4e #)se o#o -usio . NoteC T4e /rest)tio ee+ ot )#tu)lly be o/e#u i)ry 3)lue.4i#4 bi +s t4e /)rties est)blis4e+ eit4er by !) y sour#e o.substitutio i mo ey or somet4i ( o. What is the reason why a debtor considered a passi$e sub<ect? <e is #o si+ere+ ) /)ssi3e sub2e#t be#)use i t4e )bse #e o. ..t4e .t4e +ebtor. T4ere must be /roo.s there an instance in case of consignation a right may be exercised? No e. =.obli()tio Ge er)lly ) u il)ter)l /romise be-ore )##e/t) #e is ot bi +i (1 e5#e/t by ) u il)ter)l +e#l)r)tio o. $. D. I. L). T4e e umer)tio is e5#lusi3e )s /ro3i+e+ i t4e #)se o. What is the ob<ect 7prestation8 of an obligation? T4e ob2e#t o./rest)tio must 4)3e ) e#o omi# 3)lue or i #)se oo -ul-illme t1 be sus#e/tible o.it4 i te t to be bou + to ) /)rti#ul)r /erso .+em) + -rom t4e #re+itor t4e +ebtor #oul+ 2ust .or)l obli()tio s 4)s o 2uri+i#)l tie be#)use it is ) )#t o.4et4er ) obli()tio 4)s ) /e#u i)ry 3)lue is ot limite+ to t4e ob2e#t or /rest)tio t4ereo-1 but e5te +s to t4e s) #tio .t4e t4i ( sol+1 ) + o t4e obli()tio to +eli3er t4e t4i ( sub2e#t o. .4ere t4e SC r)tio )liAe+ t4)t ! ot i t4e e5/ress m) er' @i$e an instance where " or more sources of obligation exist at the same time? ? .I t4e #)se o.4i#4 #orres/o +s to t4e 2uri+i#)l +uty. Co si( )tio is ) le()l obli()tio . N)#o#o . It must be /ossible1 /4ysi#)lly ) + 2uri+i#)lly $. . T4e #riterio to +etermi e . .s the enumeration exclusi$e? 7es.o +i--ere t #o #e/ts. What are the sources of obligations which binds the parties? 1. Co tr)#ts Iu)si-Co tr)#ts "eli#ts Iu)si "eli#ts !Art.4i#4 s/ri (s -rom bloo+1 )--e#tio or be e3ole #e.) obli()tio is ot4i ( but ) /)rti#ul)r #o +u#t o.t4e #re+itor +oes ot +em) + -or t4e /er-orm) #e o. I.o. it must 4)3e ) /ossible e0ui3)le t i mo ey.t4e s)le. But t4e ob2e#t o. It m)y i 3ol3e ) t4i ( i ) obli()tio to (i3e. What is a <uridical tie or $inculum <uris? It is t4e e--i#ie t #)use1 2uri+i#)l tie1 or le()l tie .s)le1 si #e it is ) re#i/ro#)l obli()tio !bil)ter)l #o tr)#t' bot4 t4e seller ) + t4e buyer m)y be #o si+ere+ t4e /)ssi3e ) + t4e )#ti3e sub2e#t +e/e +i ( o . T4e lessee is obli(e+ to /)y t4e )mou t o. .) obli()tio 'C ).t4e obli()tio B it is 4is #o +u#t e#ess)ry to /ro+u#e t4e e--e#ts o. 11D?' U il)ter)l @romisesB ) sour#e o.

t4is i #i+e t t4e 4eirs o./roo.obli()tio to its stu+e t. Aaw Art. 11(. T4e #)se . It -ou + t4)t :EU 4)+ -)ile+ to u +ert)6e me)sures to )s#ert)i ) + #o -irm t4)t t4e se#urity (u)r+s )ssi( e+ i t4e #)m/us /ossess t4e 0u)li-i#)tio s re0uire+ i t4e Se#urity Ser3i#e A(reeme t bet.its em/loyees1 )s su//orte+ by t4e l)#6 o.I t4e #)se %alu aga v. T4ere is o ee+ to )lle(e su#4 -)#ts be#)use t4e l).s)le o./rim)rily be#)use t4ere is o l). T4e -)#t t4)t t4e +ire#t ) + /ro5im)te #)use o.4i#4 is t4e -ili ( o. $.)s i ste)+ )llo. G)l)5y .it4 t4e le()l s) #tio o. I t4is #)se1 si #e t4e )u t is ot o e ot4ose /erso s obli(e+ to (i3e su//ort #) ot be #om/elle+ to reimburse t4e e5/e ses -or buri)l.4o )lle(es ) -)#t 4)s t4e bur+e o.be#)use i Art. !ot4er 0u)si #o tr)#ts' ) + u +er su#4 /ro3isio o ly /erso s obli(e+ to (i3e su//ort #) be #om/elle+ to reimburse. Rosete1 .) y m) m)+e l).1 mor)ls1 (oo+ #ustoms1 /ubli# /oli#y or /ubli# or+er.it4 ) s)-e ) + se#ure le)r i ( )tmos/4ere.t4e s4i/ . 11DJ1 )s e5/ressly /ro3i+e+1 obli()tio s )risi ( -rom l).t4e em/loyer is ot le()lly obli(e+ to (i3e le()l )ssist) #e to its em/loyee to /ro3i+e 4im .t4e +e#e)se+ #)use+ by t4e si 6i ( o.)s +eri3e+ -rom t4e /er-orm) #e o. E.4i#4 ee+ ot be /ro3e . T4e s)me s4oul+ ot be #o tr)ry to l). 11(/ Obligations arising from contracts have the force of la! bet!een the contracting parties an shoul be complie !ith in goo faith. Be#)use o.#o tr)#t i t4e s#4ool9s obli()tio to /ro3i+e stu+e ts . A #o tr)#t sti/ul)ti ( t4)t o /)yme t o.) -)#t. Who has the burden of proof in obligations arising from contracts? T4e obli(ee 4)s t4e bur+e o.n obligations arising from law. <e #e1 #o tr)#t ) + 0u)si +eli#t . :EU bre)#4e+ t4e s#4ool-stu+e t #o tr)#t -or e(li(e #e o its obli()tio to e sure ) + t)6e )+e0u)te ste/s to m)i t)i /e)#e ) + or+er .4is )ttor ey ) + +em) +s reimburseme t -rom 4is em/loyer.e3er1 t4ere )re #ert)i -)#ts . <ere t4ere is ) obli()tio )risi ( -rom su#4 )#t b)se o 0u)si #o tr)#t u +er Art. who has the burden of pro$ing the same? Ge er)lly1 t4e /erso .)s -ou + e(li(e t i t4e sele# t i o ) + su/er3isio o. re0uiri ( su#4 em/loyer to reimburse. .)+mi istr)ti3e s) #tio )()i st Ale2) +ro Rosete1 t4e se#urity (u)r+ . b# the provisions of this boo). T4is is o e i st) #e . )re ot /resume+./ro3i ( t4e s)me. T4is is ) #)se o.)r+e+ to S)lu+)() -or )#ts o.it4i t4e #)m/us. T4e (i3i ( o.yer 4ire+ by 4im. CUC T4e se#urity (u)r+ s4ot ) mo3ie (oer be#)use t4e l)tter trie+ to 4)#6 t4e -ormer . Im/eri)l1 to 2oi tly ) + se3er)lly /)y :EU +)m)(es e0ui3)le t to t4e )mou t ).t4e lo) #o si+ers t4e 4ouse ) + lot sol+.st)rsC O e o. NoteC T4is /ro3isio /resu//oses t4)t t4e #o tr)#t is 3)li+ ) + e -or#e)ble. ?@8.(.t4e #)ses b)se+ o m)li#ious /rose#utio .4is -u #tio +oes ot m)6e t4e em/loyer li)ble be#)use t4ere is ) e--i#ie t i ter3e i ( #)use .4ere t4ere is o /resum/tio ot to )lle(e -)#ts. A/ril =%1 $%%J t4e #ourt rule+ t4)t t4e s#4ool s4)ll be 4el+ li)ble -or +)m)(es -or bre)#4 o..(.e+ to (o o le)3e )-ter t4e s4ooti ( i #i+e t1 e3e tu)lly +is)//e)re+.)ri) o ".)s +ismisse+1 )s ) result o. /resumes t4e e5iste #e o. T4e Court )lso or+ere+ G)l)5y ) + its /resi+e t1 . Su#4 #o tr)#ts )re /er-e#tly le()l1 J . Contracts Art. I.t4e +e#e)se+ -ile+ ) #rimi )l #)se )()i st t4e se#urity (u)r+.) ri(4t ) + /resumes t4e e5iste #e o.it4 ) bolo.4o s4ot S)lu+)().yer1 s)i+ em/loyee #) ot re#o3er -rom t4e em/loyer t4e )mou t 4e /)i+ ) l). T4e /ri #ess o.) 4ouse ) + lot.e(li(e #e t4)t resulte+ to :EU9s bre)#4 o.lo) ) + ) /romise o.le()l )ssist) #e to t4e em/loyee is ot ) le()l obli()tio .ee :EU ) + G)l)5y !Se#urity )(e #y'. E. Obligations erive from la! are not presume .it4 ) l).t4e e5/e ses i #urre+ i +e-e +i ( 4imsel. Onl# those e'pressl# etermine in this Co e or in special la!s are eman able. I t4is #)se1 t4e em/loyer is ot li)ble to reimburse 4is em/loyee to reimburse t4e e5/e ses i #urre+ by t4e em/loyee i +e-e +i ( 4imsel.#o tr)#t o.. <o. 1.4o . an shall be regulate b# the precepts of la! !hich establishes them7 an as to !hat has not been foreseen.)s )//lie+ )t t4e s)me i #i+e t to 4ol+ t4e )bo3e )me+ /)rties li)ble.ere burie+ by ) t4ir+ /erso ) + )s6i ( l)ter o -or reimburseme t -rom t4e +e#e+e t9s )u t o t4e e5/e ses -or t4e buri)l.4i#4 t4e (u)r+ i #urre+ e5/e ses -or t4e /)yme t o. W4ile it mi(4t ) + /ossibly be re()r+e+ )s ) mor)l obli()tio 1 it +oes ot )t /rese t #ou t .. $1E.

4is em/loyer9s busi ess.4e bi +i (B (i3es rise to li)bility I.t4e em/loyer1 it +oes ot seem so . Art W4e +uri ( ) -ire1 -loo+1 storm1 or ot4er #)l)mity1 $1E /ro/erty is s)3e+ -rom +estru#tio by ) ot4er /erso .4ile 4e is ot i ) #o +itio to (i3e #o se t to ? ) #o tr)#t1 4e s4)ll be li)ble to /)y -or t4e ser3i#es ot4e /4ysi#i) or ot4er /erso )i+i ( 4im1 UNLESS t4e ser3i#e 4)s bee re +ere+ out o.e3ery /ossessor i (oo+ -)it4 to $1? reimburseme t -or e#ess)ry ) + use-ul e5/e ses is (o3er e+ by Arti#le D.t4e busi ess or /ro/erty o.4e t4ere is o ri(4t to +em) + it1 ) + it . bet. T4e #o tr)#t i 0uestio is ot ob o5ious to t4e rule o.it4out t4e 6 o. 4olutio indebiti !/)yme t ot +ue' Art $1D.t4e $1? +ebtor1 /)ys t4e +ebt1 t4e ri(4ts o.it4+r).lost /erso )l $1? /ro/erty s4)ll be (o3er e+ by Arti#les ?1& ) + ?$%.(.restr)i ts u/o tr)+e or em/loyme t is to be +etermi e+ by t4e i tri si# re)so )ble ess o.e teri ( i to t4e #o tr)#tB ) + t4e .it4out t4e 6 o.im/ose+ )s ) #o +itio o. T4e 3)li+ity o. Solutio I +ebiti $. bet.t4e restri#tio i e)#4 #)se1 r)t4er t4) by ) y -i5e+ rule1 ) + su#4 restri#tio m)y be u/4el+ .le+(e o.er -rom t4e l)tter1 is obliged to continue the same u til t4e termi )tio o.ere obli(e+ to (i3e su//ort to t4e +e#e)se+1 s)i+ rel)ti3es D s4)ll reimburse t4e t4ir+ /erso 1 s4oul+ t4e l)tter #l)im reimburseme t.) y /erso $1E to #om/ly .t4e o.it4 4e)lt4 or s)-ety re(ul)tio s #o #er i ( /ro/erty1 u +ert)6es to +o t4e e#ess)ry .t4ose rel)ti3es .t4e o--er by o e /)rty is #le)r ) + +e-i ite1 le)+i ( t4e o--eree i (oo+ -)it4 to i #ur e5/e ses i t4e e5/e#t)tio o. Ot4er 0u)si-#o tr)#ts !su//ort (i3e by str) (ers ) + ot4er FGoo+ S)m)rit) sG' Art W4e 1 .t4e )(e #y or m) )(eme t o.o or more /erso s )re #ommi (le+ or #o -use+1 t4e rules o #o-o.oul+ )t o #e be re2e#te+ )s merely )rbitr)ry ) + .i -)#t t4e m) )(er 4)s bee t)#itly )ut4oriAe+ by t4e o. T4e #o tr)#t i t4is #)se1 #o si+eri ( t4e #ir#umst) #es1 is ot u re)so )ble.E.t4is )rti#le )//ly .t4e o--er is . ers4i/ % s4)ll be )//li#)ble.4olly u e#ess)ry to t4e /rote#tio o.or61 e3e & o3er 4is ob2e#tio 1 4e s4)ll be li)ble to /)y t4e e5/e ses. =. Ot4er Iu)si Co tr)#ts 1. $ Art W4e ) t4ir+ /erso 1 . T4e rule i t4is 2uris+i#tio 4)3e t4e -or#e o. Art T4e ri(4ts ) + obli()tio s o.4e ot #o tr)ry to /ubli# .it4out ) y le(itim)te #)use.t4e /erso obli(e+ to $1E (i3e su//ort1 it is (i3e by ) str) (er1 t4e l)tter s4)ll 4)3e ) ri(4t to #l)im t4e s)me -rom t4e -ormer1 .it4out t4e 6 o. I. 1 Art T4e ri(4t o./ure (e erosity. Buasi Contracts Cinds of Buasi Contracts 1. u 2ustl Art W4e t4rou(4 ) )##i+e t or ot4er #)use ) /erso is $1E i 2ure+ or be#omes seriously ill1 ) + 4e is tre)te+ or 4el/e+ .) +)y l)borer1 .it4out t4e 6 o.t4e )(reeme t is t4e l). er1 t4e l)tter is bou + J to /)y t4e -ormer 2ust #om/e s)tio . er is i ) /ositio to +o so.somet4i ( is re#ei3e+ . 6egotiorum gestio !o--i#ious m) )(eme t' Art $1.bei ( re/)i+. It must t4ere-ore be e -or#e+.le+(e o.l). E.t4e -ormer )re (o3er e+ by Arti#les 1$=E !re#o3er . @re-Co tr)#tu)l Obli()tio sB . ot #om/el #re+itor & .) #4il+ u +er ei(4tee ye)rs o.)s u +uly +eli3ere+ t4rou(4 mist)6e1 t4e obligation to return it )rises.it4 ri(4t osu//o reimb urseme t -rom t4e /erso obli(e+ to (i3e t.ee t4e #o tr)#ti ( /)rties. W4oe3er 3olu t)rily t)6es #4)r(e o.4o .4)t 4)s bee = be e-i#i)l to +ebtor' ) + 1$=? !#) to subro()te /)yor i 4is ri(4ts'./iety ) + .e#essity to (i3e 4im ) i si(4t i to t4e (e er)l s#o/e ) + +et)ils o. W4ile su#4 restr)i t1 i. T4e /ro3isio s o. er $..le+(e o. Art W4e t4e /erso obli(e+ to su//ort ) or/4) 1 or ) $1E i s) e or ot4er i +i(e t /erso u 2ustly re-uses to (i3e su//or t to t4e l)tter1 ) y t4ir+ /erso m)y -ur is4 E rt to t4e ee+y i +i3i+u)l1 . Ne(otorium Gestio =. Art W4e by )##i+e t or ot4er -ortuitous e3e t1 mo3)bles $1? se/)r)tely /ert)i i ( to t.re)so )ble ess.t4e -i +er o.it4 res/e#t to ) em/loyee .)(e y re-uses to su//ort 4im.ee t4em1 ) + must be e -or#e+. Art W4e -u er)l e5/e ses )re bor e by ) t4ir+ /erso 1 $1E .t4e o.4e t4e su//or -)t4er or mot4er o.el-)re ) + ot (re)ter t4) is e#ess)ry to )--or+ ) -)ir ) + re)so )ble /rote#tio to t4e /)rty i . T4is 2uri+i#)l rel)tio "OES NOT )rise i eit4er ot4ese i st) #esC 1' W4e t4e /ro/erty or busi ess is ot e(le#te+ or )b) +o e+ $' I. Art W4e t4e (o3er me t1 u/o t4e -)ilure o.4ose -)3or it is im/ose+. =.it4out ) y /o.it4out i te tio o.le+(e o.) ot4er1 .t4e )--)ir ) + its i #i+e ts1 or to re0uire t4e /erso #o #er e+ to substitute 4im1 i. UNLESS it )//e)rs t4)t 4e ()3e it out o.)l o.t4e em/loyme t o.4ose +uties )re su#4 o.

s there negotorium gestio in this case? T4e )//li) #es )re ot u +er t4e m) )(eme t ot4e (estor ) + t4)t t4ere must be )b) +o me t ) + e(le#t o.t4ere is o #rimi )l #o 3i#tio 1 t4is sour#e o.obli()tio . Will there be any liability e$en if no one has been un<ustly enriched? I #)se o.)(e +e#i+e u/o ) me)sure -or /rote#tio )()i st l). $1. NoteC I 2usti-yi ( ) + e5em/ti ( #ir#umst) #es t4ou(4 ) /erso is ot 4el+ #rimi )lly li)ble +oes ot e#ess)rily me) t4)t 4e is ot #i3illy li)ble. o. T4ere-ore #ul/) e5tr) #o tr)#tu)l me) s e(li(e #e outsi+e o. $1. I 2usti-yi ( #ir#umst) #es1 (e er)lly t4ere .#o 3i#te+ o.t4e /ro/erty. T4is #)se t4ere-ore -)lls u +er ot4er 0u)si #o tr)#ts.e3er is ot )bsolutely true be#)use t4ere )re #ert)i -elo ies .li)bility !restitutio 1 re/)r)tio o.e(otorium (estio1 t4e o.) ot4er.4ere t4e sour#e is ot ) #o tr)#t1 it #) #)lle+ e5tr) #o tr)#tu)l obli()tio s.ill ot )rise but m)y )rise -rom ot4er sour#e o.4i#4 #)uses +)m)(e to ) ot4er1 /ro3i+e+ t4)t t4e -ollo. their house was burned.t4e l)tter 4)s ot bee u 2ustly e ri#4e+.t4e /re#e+i ( )rti#le.4i#4 is t4e #o se t (i3e by t4e obli(or.4o ob2e#ts to t4e /l) ) + re-uses to #o tribute to t4e e5/e ses but is be e-ite+ by t4e /ro2e#t )s e5e#ute+ s4)ll be li)ble to /)y 4is s4)re o.t4e R@C i )++itio to #i3il li)bility1 restitutio 1 re/)r)tio o.-ul1 u il)ter)l ) + 3olu t)ry1 ) + t4e u +erlyi ( /ri #i/le is t4)t o o e s4)ll be u 2ustly e ri#4e+ )t t4e e5/e se o./re3e ti ( it.G) (#o 3s. . Art A y /erso . T4)t t4e i 2ury -e)re+ be (re)ter t4) t4)t +o e to )3oi+ itB T4ir+. ot4er #)l)mity1 ) y o e .4ere it /ro3i+es t4)t A y /erso . 1%% o. . not exclusi$e9 Art. T4)t t4e e3il sou(4t to be )3oi+e+ )#tu)lly e5istsB Se#o +. U +er Art.4e it is l).$ Cert)i l). o. .obli()tio or 0u)si +eli#t.) #o tr)#t. .s culpa extra contractual an appropriate name for 0uasi delict? 6o& I t4e #)se o.4ere it /ro3i+es t4)tC A y /erso . D Basis of Buasi Contracts9 Art.-ul1 3olu t)ry ) + u il)ter)l )#ts (i3e rise to t4e 2uri+i#)l rel)tio o. T4is 4o.t4e R@C /ro3i+es t4)t e3ery /erso #rimi )lly li)ble is )lso #i3illy li)ble. 1% .it4i t4e /ur3ie. o.Art W4e i ) sm)ll #ommu ity ) )tio )lity o. NoteC E3e i. *& Culpa A0uiliana 7Buasi /elict8 .he enumeration of the pro$isions for 0uasi contracts.ill )rise e3e i.u 2ust e ri#4me t. the $ery night they lefts.4o1 i or+er to )3oi+ ) e3il or i 2ury1 +oes ot )#t .ot so /ro3i+e+ by l). T4is is be#)use t4ere is o /ri3)te o--e +e+ /)rty i some #rimes. T4)t t4ere be o ot4er /r)#ti#)l ) + less 4)rm-ul me) s o.4o is #o str)i e+ to /)y t4e t)5es o$1? ) ot4er s4)ll be e title+ to reimburseme t -rom t4e l)tter.0u)si #o tr)#t to t4e e + t4)t o o e s4)ll be u 2ustly e ri#4e+ )t t4e e5/e se o. *& Acts or omissions punished by law 7/elicts8 U +er Art. I e5em/ti ( #ir#umst) #es1 (e er)lly t4ere is #i3il li)bility e5#e/t /)r)(r)/4 .it4i t4e /ur3ie.i ( re0uisites )re /rese tC :irst.) ot4er. As to obli()tio s . NoteC I.#o se0ue ti)l +)m)(es.it4 +ue #)re1 #)uses ) i 2ury by mere )##i+e t .oul+ )//e)r t4)t t4e /ri #i/les be4i + 0u)si #o tr)#ts +oes ot re)lly -)ll u +er t4e /ri #i/le o. NoteC It is ot #orre#t to s)y t4)t e3ery time ) /erso is 4el+ #rimi )lly li)ble u +er t4is sour#e oobli()tio )ll t4ese 6i +s o.4o1 .it4out -)ult or i te tio o.) #rime. it m)y be #o si+ere+ )s -)lli ( .= T4e /ro3isio s -or 0u)si #o tr)#ts i t4is C4)/ter +o ot e5#lu+e ot4er 0u)si #o tr)#ts . the neighbors sa$ed some of their appliances& .4ile /er-ormi ( ) l).less ess1 -ire1 -loo+1 storm or .t4e $1? i 4)bit) ts o.oul+ be o #i3il li)bility1 e5#e/t i /)r)(r)/4 .#o se0ue ti)l +)m)(es' .#)usi ( it.+)m)(e #)use+1 i +em i-i#)tio o. 1%. .4ere o #i3il li)bility .s)i+ e5/e ses. T4e /ri #i/le be4i + t4is obli()tio is im/lie+ #o tr)#ts1 .4i#4 m)y #ome .+)m)(e #)use+1 ) + i +em i-i#)tio o.he owner left his house for a short $acation. er 4)s t4e obli()tio to reimburse t4e (estor e3e i.-ul )#t . T4ere-ore it .0u)si #o tr)#t .RR !=J @4il ?EJ' obli()tio s #) be #l)ssi-ie+ eit4er -rom #o tr)#tu)l obli()tio s ) + e5tr) #o tr)#tu)l obli()tio s.oul+ )rise.

2he ebtor of a thing cannot compel the cre itor to receive a ifferent one. +11*.oul+ #o3er i te tio )l ) + u i te tio )l )#ts.s (ault the same as negligence? No. he ma# as) that the obligation be complie !ith at the e'pense of the ebtor.ell su//orte+ by t4e 4istory o. an observe honest# an goo faith.t4ere is e(li(e #e outsi+e o. t4)t m)li#ious )#ts1 i te tio )l )#ts1 )#ts /u is4e+ by l).4oe3er by )#t or omissio #)uses +)m)(e to ) ot4er1 t4ere bei ( -)ult or e(li(e #e1 is obli(e+ to /)y -or t4e +)m)(e +o e.t4ere is o /re-e5isti ( #o tr)#tu)l rel)tio bet. Su#4 -)ult or e(li(e #e1 i.t4e l).t4e .oul+ i #lu+e m)li#ious )#t1 i te tio )l )#t1 . I t4ese )mes1 it #) ot be t4e b)sis o.0. ) + t4e /rese t /ro3isio s o. +10/(Art.) )#tio u +er 0u)si +eli#t.ro (-ul1 )#ts /u is4e+ by l).aArt..4i#4 #oul+ ot be t4e b)sis o. 442. . A )#tio -or 0u)si +eli#t #) o ly )rise b)se+ o ) e(li(e t )#t or omissio .s torts an appropriate term for 0uasi delict? Torts )s ) )me is ot )//ro/ri)te be#)use it is more e #om/)ssi ( )s it . +10/.. Natural fruits are the spontaneous pro ucts of the soil.t4e 3ie.) #o tr)#t li6e e(li(e #e )risi ( -rom l). A thing is eterminate !hen it is particularl# esignate or ph#sical segregate from all other of the same class. in the e'ercise of his rights an in the performance of his uties. $1?E . .4ere it /ro3i+es t4)t . an act or forbearance cannot be substitute b# another act or forbearance against the obligee3s !ill. although the latter ma# be of the same value as. !hose "ualit# an circumstances have not been state .ee t4e /)rties1 is #)lle+ 0u)si +eli#t ) + is (o3er e+ by t4e /ro3isio s o. give ever#one his ue. 11*3. he shall be responsible for an# fortuitous event until he has effecte the eliver#. it #) ot be t4e b)sis o. It is . +10/4aArt. 14*0. 124*. @)rti#ul)rly U +er Art.t4e (estor +oes ot e#ess)rily me) t4)t it .oul+ -)ll u +er 0u)si +eli#t> Not e#ess)rily be#)use t4ere )re .or+ #ul/) e5tr)-#o tr)#tu)l o. 1244. 2he obligation to give a eterminate thing inclu es that of elivering all its accessions an accessories.it4 Obli()tio sC Dow should these sources of obligations be complied with? . 4n obligations to o or not to o. the thing is capable of being ma e eterminate !ithout the necessit# of a ne! or further agreement bet!een the parties.4)t is use+ is t4e .. . +10/*Art. But t4e Su/reme Court is o.) )#tio -or 0u)si +eli#t.I. or has promise to eliver the same thing to t!o or more persons !ho o not have the same interest. the cre itor. &hen the obligation consists in the eliver# of an in eterminate or generic thing. ot4er sour#es oobli()tio s outsi+e o. act !ith 1ustice.or+ torts.t4e l). or more valuable than that !hich is ue. even though the# ma# not have been mentione .t4is #4)/ter !#4)/ter o 0u)si-+eli#ts'. +11**aArt. ma# compel the ebtor to ma)e the eliver#.aArt. #i3il #o+e1 t4ere-ore e3e i. &hen !hat is to be elivere is a eterminate thing. 4f the obligor ela#s. 2he purpose of the obligation an other circumstances shall be ta)en into consi eration. #) be t4e b)sis o. U +er t4e ol+ #i3il #o+e1 i or+er -or o e to be 4el+ li)ble u +er 0u)si +eli#t1 t4e )#t must ot be /u is4e+ by l). T4is /4r)se o lo (er )//e)r u +er t4e e. Com/li) #e . Be#)use -)ult . in a ition to the right grante him b# Article 11. he shall ac"uire no real right over it until the same has been elivere to him.) )#tio -or 0u)si +eli#t. 11*4. unless the la! or the stipulation of the parties re"uires another stan ar of care.)+)ys )re o lo (er use+ by t4e Su/reme Court.) #o tr)#t +oes it me) t4)t it . I 0u)si #o tr)#ts1 u +er e(otorium (estio1 t4e e(li(e #e o. the cre itor cannot eman a thing of superior "ualit#. 2he cre itor has a right to the fruits of the thing from the time the obligation to eliver it arises. an the #oung an other pro ucts of animals.he manner of complying with this sources of obligations& Art.1 but t4e sour#e . Art. 4f the thing is in eterminate or generic. @ver# person must. Torts . NoteC T4e use o..oul+ be t4e l). 1/. 11**. 2he re"uisite that a thing be eterminate is satisfie if at the time the contract is entere into. :o!ever. 11*(. Commo ly . +nArt.) )#tio -or 0u)si +eli#t.t4e )#t is ot /u is4e+ by l). @ver# person oblige to give something is also oblige to ta)e care of it !ith the proper iligence of a goo father of a famil#.oul+ -)ll u +er 0u)si +eli#t be#)use it .oul+ -)ll u +er 0u)si #o tr)#ts. Neither can the ebtor eliver a thing of inferior "ualit#.oul+ i #lu+e )#ts .

ro (-ully re2e#t t4e +is/ositio .s there such a thing as $oid condition? T4ere is o su#4 t4i ( )s 3oi+ #o +itio .t4e /ur/ose o.t4e sour#es o.n obligations to gi$e a determinate thing.t4e obli()tio s is t4e l).it4.) #)r or o.it4 ) be#omi ( +ue. . an preservation. t4e #o tr)#t s4)ll be #om/lie+ .) (o+ -)t4er o.4i#4 s4oul+ ot im/)ir t4e le(itime o.4i#4 4e /romise+ to +eli3er.t4e est)te .obli()tio is i 3ol3e+.t4e /)rties .ill . But ) test)me t)ry /ro3isio i ) .su/erior 0u)lity.t4e est)te.e3er1 .4)t is to be (i3e 1 .t4e #o +itio is resolutory but . Civil fruits are the rents of buil ings. gathering.4)t 6i + o.n an obligation to deli$er a Cia 1ride. W4)t m)y be su/erior to me m)y be i -erior to most o. 443. Sus/e si3e1 /otest)ti3e1 et# /ert)i s to #o +itio s.1 t4e t4e /ro3isio s o. I.obli()tio #) be #om/lie+ .you.it is ) #o tr)#t t4e t4e sti/ul)tio /ro3i+e 4o. S)le o. .e3er .ill be e5ti (uis4e+ )t t4e 4)//e i ( o. . the debtor offered to deli$er a BEW. . .t4e e3e t. +3((aArt.4n ustrial fruits are those pro uce b# lan s of an# )in through cultivation or labor.s there such a thing as suspensi$e obligation? No e.4i#4 is oi -erior 6i +1 but eit4er #) t4e #re+itor +em) + ) t4i ( . +em) + 4)s (ot ot4i ( to . A testamentary pro$ision gi$ing an heir a car.+ili(e #e. t4is sour#e o. T4ere-ore i.#ommo #)rriers. ) + ot -rom ) #o tr)#t o.ill be e5ti (uis4e+ )t t4e 4)//e i ( o.) t to )##e/t. T4is m)y )rise -rom l). e5/ressly )llo. It o ly e5ists i sus/e si3e term or #o +itio .s t4is. <o. .oul+ re0uire ) 4i(4er +e(ree o. :or obli()tio s to +eli3er ) (e eri# t4i (1 t4e +ebtor #) ot +eli3er ) t4i ( . T4e l).it4.t4e term. I /ure obli()tio s $. A pure obligation whose performance does not depend upon a future and uncertain e$ent or .s)le.) -)mily s4oul+ be obser3e+. what is the manner of compliance? T4e /rim)ry obli()tio o. :e !ho receives the fruits has the obligation to pa# the e'penses ma e b# a thir person in their pro uction. t4e (r) +so to use t4e #)r i #om/etitio s1 t4e ) #)r i su--i#ie t to /er-orm i r)#e tr)#6s is im/ro/er. Si #e t4ere #) be .it4 ) term or /erio+ i.4i#4 m)y or m)y ot 4)//e . be#omes +ue o 3)li+ +em) + T4ere-or obli()tio I.4et4er it is ) +etermi )te t4i ( or ) i +etermi )te t4i (.oul+ /ro3i+e 4o. Cinds of 5bligations9 When would an obligation become due? It +e/e +s o .ro ( to s)y t4)t ) obli()tio u/o +em) +.t4e l).f it is an obligation to gi$e.) +ebtor is to (i3e t4e 3ery s)me t4i ( . what is the manner of compliance? It +e/e +s o .t4e l). T4ere is ot4i ( 3)li+ or 3oi+ )bout #o +itio s. is the testamentary pro$ision allow the heir to re<ect the disposition? <e m)y 3)li+ly re2e#t or . What =ind of obligations become due and demandable at once? 1.4)t is su/erior or i -erior is ) 3ery sub2e#ti3e +etermi )tio . can the obligation be $alidly extinguished? 7es1 t4ou(4 t4e #re+itor #) ot be #om/elle+ to )##e/t1 4e m)y 4o. I #o +itio )l obli()tio s i. I t4e )bse #e o. It is . =. .4i#4 is ) (e eri# t4i ( is 3)li+ +is/ositio .4e t4e obli()tio is ot yet +ue. T4us1 t4e obli()tio . re0uires ) 4i(4er +e(ree o.4i#4 is o. or ) sti/ul)tio to t4)t e--e#t1 t4e +ili(e #e o. Can there be a $alid obligation to deli$er a generic thing? 7es. Ot4er t4) t4e l).1 is t4e sti/ul)tio o.oreo3er1 )si+e -rom t4e /ur/ose is t4e 3)lue o. I obli()tio .) 4orse #) ot be #o si+ere+ ) 3)li+ s)le.t4e test)tor is to (i3e 4is #)r is to )llo.4)t is re0uire+ o. +3(*- .+ili(e #e su#4 )s .s there an exception where a debtor is obliged to deli$er a thing re0uires a different =ind of diligence in ta=ing care of the thing other than a good father of a family? 7es1 i.) l). Voi+ ) + V)li+ /ert)i to obli()tio s.resolutory i #4)r)#ter but it . A #o +itio is merely ) e3e t . the price of leases of lan s an other propert# an the amount of perpetual or life annuities or other similar income.ill be e5ti (uis4e+.

it4 ) im/ossible #o +itio 1 it s4)ll ) ul t4e obli()tio . . if C married / is it possible that the condition mentioned abo$e is no longer possible? No. It is +ue ) + +em) +)ble +e/e +i ( o . A e3e t is #ert)i to 4)//e . A ull)ble /resu//oses ) 3)li+ obli()tio .s this statement $alid? T4is is ot 3)li+. To be /ure it must ot be #o +itio )l ) + ot .4)t 4)//e e+ to t4e so .e3er1 t4e #ourt tre)te+ it )s ) /ure obli()tio be#)use. !@)y 3s. Note 4o. T4ere-ore it s4oul+ be or.4i#4 .it4i t4e time me tio e+ i t4e #o +itio .ill ot +ie o. I.F) +G is use+1 it .. What is the effect of an impossible condition? I.it4 ) #o +itio s ) + )lso t4ose .) #)r )##i+e t. what is the effect? It +oes ot result i ) 3oi+ test)me t)ry +is/ositio .re0uires t4e /er-orm) #e o. T4is is ) 3)li+ obli()tio . I t4e )bo3e st)teme t bot4 t4e -uture ) + u #ert)i must bot4 #o #ur ) + t4is .-ul or im/ossible #o +itio is +eeme+ ot .upon a past e$ent un=nown to the parties& . .oul+ ot m)6e it ) /ure obli()tio .or+s ) + /4r)ses .it4i 1 ye)r t4e +ebtor #) be #om/elle+ to /)y1 be#)use i t4)t mome t it is )lre)+y #ert)i t4)t t4e so .) )#t. I. Dowe$er.ritte . .or is use+ it .you +o 9t 6ill .ill (i3e you 1 millio i.4et4er it is #o +itio )l or /ure obli()tio . J.4e t4e so +ie+ o.#) #er . What are the =inds of conditions? 1. @ositi3e . It is .re0uires t4e omissio o. B m)y (o out o. T4e /4r)seolo(y is +e-e#ti3e1 i ste)+ o.ill re#ei3e i t4e est)te1 .#) #er . I.i5e+ @ossible Im/ossible Ne()ti3e . Eay there be a $alid obligation with an impossible condition? 7es..4i#4 is 3)li+ u til ) ulle+.) )#t.it4 ) sus/e si3e #o +itio .it4 ) term. ?.t4e so +i+ ot +ie o. &.#) #er .. $..t4e #o +itio t4ou(4 im/ossible is i t4e e()ti3e1 li6e i .t4e semi )ry be-ore t4e 1 ye)r /erio+ l)/se+.it4 ) term. i su##essio 1 su#4 u l).oul+ e5#lu+e obli()tio s . E. =.it4i 1 ye)r1 t4e obli()tio +oes ot )rise.s it proper to say unlawful conditions? 7es. . Sus/e si3e Resolutory @otest)ti3e C)su)l . I. Ne()ti3e im/ossible #o +itio s )re +eeme+ ot .ro ( to s)y t4)t ) #)use o.n unlawful or impossible conditions in testamentary dispositions.)s m)+e. my . T4is i st) #e is ) im/ossible #o +itio . It is 2ust ) s/)#e otime.t4e so +ies o. @)l) #)' What is the conse0uence of a pure obligation or a conditional obligation but resolutory in character? It is +em) +)ble )t o #e1 ) + e#ess)rily t4e /res#ri/ti3e /erio+ st)rts to ru -rom t4e time t4e #)use o.)#tio )##rues. U +er t4e l)..t4e obli()tio is .) ulle+ it s4oul+ 4)3e bee 3oi+. I.it4 ) term.ill o.su#4 be t4e #)se o )#tio s4)ll /res#ribe.i-e. What are the =inds of impossible conditions? Le()l im/ossibility ) + /4ysi#)l im/ossibility. But t4ere is ) /ro3isio i t4e ote t4)t u/o re#ei/t -rom t4e est)te t4ere is o )ssur) #e t4)t t4e #re+itor .ritte 1 )s su#4 it is #o si+ere+ )s ) /ure obli()tio u less t4ere )re ot4er . A term #) e3er be u #ert)i .oul+ o ly e5#lu+e ) #o +itio .n a condition that B should marry C within year but after " wee=s he entered the seminary? . I.t4e +ebtor.4i#4 /resu//oses ) #o +itio )l obli()tio . . What is a potestati$e conditon? U +er 11J$1 it is ) #o +itio t4)t is +e/e +e t u/o t4e sole .)#tio )##rues -rom t4e time t4e +em) + .i ) /romissory ote1 o its -)#e it +oes ot s)y or it #) ot be +etermi e+ . D.s it certain that the condition is not longer possible? No. W4)t is im/ro/er is 3oi+ #o +itio s.he debtor promises to pay if his son does not die of cancer within year& 4tate the status of the obligation whether it is $alid or not..it4 ) #o +itio ) + ot t4ose . But e3e i. and if $alid state whether the obligation is due and demandable? T4e #o +itio is sus/e si3e e()ti3e /ossible!mi5e+'#o +itio .it4i 1 ye)r su#4 )s . be#)use " m)y +ie ) + B #) m)rry C .oul+ o ly e5#lu+e ) #o +itio .

s)le' it is +eeme+ mutu)lly #om/e s)te+. it is +eeme+ mutu)lly #om/e s)te+ be#)use1 A is e title+ to i terests o t4e /ri#e . It is ot +e/e +e t u/o t4e sole .4e .oul+ /resu//ose t4)t B m)y be e title+ to t4e /ro#ee+s o.4o is t4e +ebtor but r)t4er t4e (r) +-)t4er.)s m)+e .t4e 4)//e i ( o.4y t4ere is ) /ro3isio t4)t i re#i/ro#)l obli()tio s1 t4e -ruits re#ei3e+ )re +eeme+ mutu)lly #om/e s)te+.)s t4e o.4e t4ou(4 4e /re3e te+ t4e 4)//e i ( ot4e #o +itio 1 su#4 /re3e tio . B demanded all the proceeds of the rentals from "!! until "!!>. As su#41 C .t4e +ebtor. Assuming for the sa=e of argument that such condition is a potestati$e condition. T4ere-ore t4e (r) +-)t4er #) be #om/elle+ to +eli3er.ill m)6e sure t4)t t4e sus/e si3e #o +itio . still not be compelled to perform? 7es1 .4o 3olu t)rily /re3e te+ t4e 4)//e i ( o. T4is is be#)use ) +ebtor .ill ot 4)//e so t4)t t4e obli()tio . But it must be ote+ t4)t i or+er to be ) /ur#4)ser i (oo+ -)it4 ) + -or 3)lue1 su#4 s4oul+ be re(istere+.t4e /ro/erty -rom $%%1. it shall gi$e rise to the obligation? W4e it . U +er t4e l). B is obli(e+ to /)y t4e /ri#e ) + A4)s t4e obli()tio to tr) s-er o.n conditional obligations. -ruits re#ei3e+ )re +eeme+ mutu)lly #om/e s)te+.When the condition depends upon the sole will of the debtor and it is a suspensi$e condition? Will such be $alid? It is 3oi+.ill o. the obligation will not arise& When shall the obligation e$en if the condition did not happen.t4e 4)//e i ( o.4e 4e . . .he grandfather promises to gi$e his grandson a car upon the latter’s passing the bar exam& .ill o. T4ere-ore t4e obli()tio is ) 3)li+ o e. the happening of the condition shall gi$e rise to the obligation& 5rdinarily if the condition did not happen. er o. 11J? t4e e--e#t o.t4e #o +itio .oul+ ot be bou + by t4e )(reeme t m)+e by A ) + B.e3er1 )s ) e5#e/tio 1 C m)y 4)3e ) better ri(4t i.ill. T4ere is t4ere-ore ) retro)#ti3e e--e#t.s it potestati$e? 7es1 su#4 is /otest)ti3e t4)t is +e/e +e t u/o t4e sole .s passing the Bar exam a potestati$e condition? Casual or dependent upon chance? It is eit4er ) /otest)ti3e or ) #)su)l #o +itio . ers4i/. A obliged herself in "!! to sell to B a house and lot upon his passing the bar exam& B passed the bar exam in "!!>& Dowe$er in "!!% A sold the house and lot to C and this house from "!! was being rented by /& B upon passing the bar exam demanded upon A to deli$er to him the house and lot pursuant to the "!! obligation made by A& Who has a better right o$er this house and lot? B or C? As ) rule1 it is B .ill ot )rise.oul+ 4)3e ) better ri(4t. . I t4e )bo3e #)se1 B is e title+ to t4e -ruits but +ue to t4e /ro3isio o mutu)l #om/e s)tio 1 4e s4)ll o lo (er re#ei3e t4e -ruits. It is be#)use . <o.ill1 4e .t4e #o +itio )lre)+y 4)//e e+ )s e)rly )s $%%1. Dowe$er. is he entitled to the rentals? Si #e1 u +er Art.he grandson passed the bar and demanded the deli$ery of the car& But the grandfather refused to deli$er the car and argued that he cannot be compelled to deli$er the same because it is a potestati$e condition& It is ot ) /otest)ti3e #o +itio but r)t4er ) sus/e si3e #o +itio . <o.C #) /ro3e t4)t 4e is ) buyer i (oo+ -)it4 ) + -or 3)lue1 4e .t4e #o +itio retro)#ts to t4e #o stitutio o.)s e5er#isi ( 4is ri(4t. 11J? t4e e--e#t o.e3er1 it is submitte+ t4)t B is ot e title+ to t4e re t)ls be#)use -ruits re#ei3e+ i re#i/ro#)l obli()tio !si #e t4is is ) #o tr)#t o. . if the condition is suspensi$e in character. Assuming that B has a better right. I t4is #)se it is ot t4e (r) +so .ill o.4o 4)s ) better ri(4t be#)use u +er Art.s the $iew that the retroacti$e effect of Art& F' does not co$er fruits? No.t4e re ts )s i.4ile B is e title+ to t4e re t)ls1 u +er t4e l).t4e obli()tio 1 .4et4er or ot A . is there an instance where the debtor who $oluntarily pre$ented the happening of the condition in order to gi$e rise to the obligation.t4e #o +itio retro)#ts to t4e time o. T4)t is . can the grandfather be compelled to deli$er because the condition is $oid? T4e (r) +-)t4er still #) ot be #om/elle+ be#)use u +er 11J$1 it /ro3i+es t4)t ) #o +itio is m)+e by t4e sole .t4e (r) +-)t4er. . A promise to gi$e B his car if A will go to Baguio within > days? .t4e +ebtor. <e #e ot ) /otes)ti3e #o +itio .t4e #o stitutio ot4e obli()tio )s i.)s t4e +ebtor .4o #) im/ose ) #o +itio u/o 4is sole .ill (o to B)(uio solely +e/e + u/o 4is .

n obligation is an obligation with a suspensi$e term .t4e )#tio is to #om/el t4e ot4er /)rty to 4)3e t4e )(reeme t re(istere+ . 11&?. T4ere-ore1 u/o t4e s)le t4e +ebtor #) be #om/elle+ to remit.re ts be /)i+ ) u)lly1 it is /resume+ t4)t t4e /erio+ o.mo ey1 t4e #re+itor is e title+ to t4e im/ro3eme ts. I. T4ir+ly1 e3e i.ill ot /ros/er. It is ) /erio+ i t4e e5er#ise o.4i#4 is u/o t4e s)le o.t)5es $.ndefinite periods will arri$e. But1 t4e #re+itor m)y -ile ) )#tio -or t4e /reser3)tio o.t4ere is1 t4e -i5i ( o.4e t4e /)rties +i+ ot -i5 ) /erio+ but it /ro3i+es t4)t t4e /)yme t .t4e #re+itor i.t4e /erio+ is ot /ro/er u +er Art. Or i. .s a period contemplated by the parties? T4e )r(ume t by t4e +ebtor t4)t t4e est)-) #)se is /rem)ture be#)use t4e reme+y o. .n a contract between the parties it was pro$ided. will the action prosper? It m)y /ros/er -or )s lo ( )s it is ot ) )#tio -or s/e#i-i# /er-orm) #e be#)use t4e #o +itio bei ( sus/e si3e1 t4ere is yet o obli()tio t4)t )rise. . fixed by law.Art. It4ere is o /er-e#te+ #o tr)#t1 t4e #ourt 4)s o /o.s a year period of redemption. that debtor must remit the proceeds upon the sale of the tobacco& .) ri(4t1 be#)use .t4e tob)##o.er to -i5 t4e /erio+ /resu//oses t4)t t4ere is ) /er-e#te+ #o tr)#t. may be definite if there is a day certain& .re t is -or 1 ye)r.o e1 su#4 )s . but from its nature and the circumstances it can be inferred that a period was intended./ro/erty.n suspensi$e conditions imposed on an obligation. 11&? ot to )//ly1 .. I ) le)se #o tr)#t1 e3e .t4ere is ) /erio+ i te +e+ by t4e /)rties1 t4e #ourt must )lso +etermi e . :nder Art& )' it was pro$ided that if the obligation does not fix a period. t4e #re+itor i t4is #)se o ly 4)s t4e ri(4ts o.ill ot #)use +)m)(e to t4e t4i ( to be +eli3ere+. I.) /erio+ 4)+ )lre)+y l)/se+ ) + t4e obli()tio i 3ol3es ) obli()tio to +o1 ) )#tio -or s/e#i-i# /er-orm) #e #) o lo (er /ros/er1 but t4e )#tio -or +)m)(es s4)ll /ros/er. What is the procedure for the court to fix a period? To +etermi e . T4e +ebtors ri(4ts is limite+ to t4e remo3)l o. @eo/le'.4et4er t4e /)rties i te +e+ t4)t t4ere be ) /erio+1 i.4et4er t4ere is ) /erio+ or o /erio+ st)te+ i t4e #o tr)#t.t4e #)use o. T4e /ro3isio s o.oul+ re +er t4e /ro3isio s o.4is ri(4ts1 li6e i. T4ere is o ee+ -or t4e #ourt to -i5 t4e /erio+ !Lim 3s. the courts may fix the duration thereof& What is the guidelines wherein the court in this instance may fix the period? T4e #ourt 4)3i ( /o.) usu-ru#tu)ry.t4e im/ro3eme t is t4rou(4 )ture1 su#4 im/ro3eme ts s4)ll /ert)i to t4e #re+itor.4i#4 +oes ot yet )rise1 t4e )#tio #) ot /ros/er be#)use t4e )#tio is /rem)ture.t4e im/ro3eme t )s lo ( )s it .4i#4 . a period in relation to obligations? No.4e t4e /)rties i te +e+ t4)t it be ) /ure obli()tio 1 t4e t4e -i5i ( o. the creditor filed an action. Se#o +ly1 to +etermi e .n suspensi$e condition.to (o to #ourt -or t4e l)tter to -i5 t4e /erio+ is ot /ro/er be#)use t4e )(reeme t by t4e /)rties is o e .4et4er su#4 /erio+ 4)+ )lre)+y /res#ribe+ or ot. @i$e examples of period fixed by law? 1. T4e )r(ume t by t4e +ebtor t4)t t4ere . U +er t4e l).t4e )(reeme t #le)rly /ro3i+es -or ) /erio+ . the obligation arise because the term is certain to arri$e.er to -i5 t4e /erio+.4o 4)s ) ri(4t is ot #om/elle+ to re+eem.) /erio+ is ot /ro/er u +er Art.it4 ) /erio+. or fixed by the court& . but dependent on certain e$ents which is certain to happen but the specific date is not certain& Another classifications of periods is the source of the period on whether it is by con$entional or $oluntary period 7by agreement of the parties8. . 11&?. Su#4 t4)t ) )#tio -or s/e#i-i# /er-orm) #e o ) obli()tio . No /)yme t o.i im/ro3i ( t4e /ro/erty t4e +ebtor s/e t ) sum o. what is the effect of any impro$ement or deterioration on the thing to be deli$ered? I im/ro3eme ts1 i.it4 t4e )//ro/ri)te re(istry o. it will only gi$e rise to the demandability of the obligation& ? o.n obligations with a term or period.)s o /erio+ -i5e+ by t4e /)rties1 .

T4is #oul+ be s)i+ to be -or t4e be e-it o. Art. an the 5ortgage . T4is is be#)use t4e +ebtor #) ot be .. in case one of the obligors shoul not compl# !ith !hat is incumbent upon him. 11/1 2he po!er to rescin obligations is implie in reciprocal ones. 2he court shall ecree the rescission claime .) t to )##e/t be#)use 4e 4)+ ot /l)#e to store t4e (oo+s .4i#4 is t4e sub2e#t o. T4is is /rob)bly be#)use t4e #re+itor . 11/. t4)t t4e +ebtor )lre)+y 4)s t4e me) s to /)y. T4ere-ore u +er t4e -)#ts1 t4e /erio+ is bot4 -or t4e be e-it o. .f the phrase pro$ided for in the obligation is payable on or before /ecember % . #om/elle+ to /er-orm t4e obli()tio be-ore t4e )rri3)l o.t4e +ebtor )lre)+y 4)s t4e me) s to /)y1 (o to #ourt to -i5 t4e /erio+ ) + u/o t4e l)/se o. even after he has chosen fulfillment.t4e +ebtor.e3er1 t4e #re+itor m)y retur it )t ) y time be#)use t4e /ro3isio is solely -or t4e be e-it o.t4e obli()tio .t4e /erio+.t4e +ebtor ) + t4e #re+itor.e3er1 t4e +ebtor #) #om/el t4e #re+itor to )##e/t t4e /er-orm) #e o.s there contracts solely for the benefit solely of the creditor? 7es1 .t4e /erio+.4e 6 e.t4e #re+itor.t4e t4i ( sub2e#t o.t4e #re+itor ) + t4e +ebtor. in accor ance. such is also a <udicial period& 8n er Art.e3er1 t4e #re+itor 4)s ) i terest i t4e /erio+ be#)use it . It is merely ) +is/ut)ble /resum/tio t4)t t4e /erio+ is bot4 -or t4e be e-it o. 3$en assuming that the period is solely for the benefit of the debtor.) t to 4)r3est -irst be-ore t4e retur s t4e t4i (.( an 13.t4e /erio+. 11&J1 ) +ebtor m)y lose 4is ri(4t to m)6e use o. or can the creditor be compelled to accept the obligation e$en before the arri$al of the period? I t4e se#o + s#e )rio t4e #re+itor #) ot be #om/elle+ to )##e/t t4e obli()tio e3e be-ore t4e )rri3)l o. is it both for the benefit of the creditor and the debtor? No su#4 /4r)se is #le)rly -or t4e be e-it o. is it possible that the creditor $alidly demand for the performance of the obligation? 7es. 2his is un erstoo to be !ithout pre1u ice to the rights of thir persons !ho have ac"uire the thing.4e t4ere )re sti/ul)tio s t4)t t4e +ebtor #) ot /)y . :e ma# also see) rescission.t4e /erio+1 t4e obli()tio be#ome +ue ) + +em) +)ble. before the arri$al of the term. the obligation shall be deemed to be one with a period sub<ect to the pro$isions of Art& )'. 2he ebtor shall lose ever# right to ma)e use of the perio : Can the debtor be compelled to perform the obligation before the arri$al of the period.t4e /erio+ be#)use t4e #re+itor m)y ot . the debtor offered to pay the entire amount to the creditor and also demanded for the return of his car& Can the creditor be compelled to accept the payment? Can he be compelled to return the car? W4ile t4e +ebtor #) ot be #om/elle+ to /)y be-ore t4e )rri3)l o. !ith the pa#ment of amages in either case. T4)t #) 4)//e i.n this case.t4e obli()tio e3e be-ore t4e e5/ir)tio o. U +er Art. come August of the same year. A borrowed money from B in Ganuary payable at the end of the year& . . I.t4e /erio+.t4e /erio+.t4e /erio+ .t4e obli()tio be#)use o. <o.t4e obli()tio . so that an action for the court to fix the period may prosper? T4e #re+itor s4oul+ o ly (o to t4e #ourt i.4ere t4e #re+itor 4)s t4e ri(4t to t4e -ruits o.bot4 t4e +ebtor ) + t4e #re+itor. unless there be 1ust cause authori$ing the fi'ing the perio .:nder Art& F! which pro$ides that when the debtor binds himself to pay when his means permit him to do so. and as such the court shall fix the period& . <o. O t4e ot4er 4) +1 4o.) s#e )rio . when will the obligation become due. and no other factor has been pro$ided for.t4e ye)r. B)se o t4e -)#ts t4e )bo3e /ri #i/le -i +s )//li#)tio i t4e /rese t #)se be#)use t4e +ebtor #) ot be #om/elle+ /)y be-ore t4e )rri3)l o.a!.. When the period is solely dependent upon the will of the debtor.t4e #re+itor be#)use o. if the latter shoul become impossible.oul+ .t4e /erio+1 t4e #re+itor #) ot )lso be #om/elle+ to )##e/t t4e /er-orm) #e o.4i#4 is t4e e + o.o secure the fulfillment of the obligation A deli$ered his car to B and it was stipulated that B can use the car& After a few months. 2he in1ure part# ma# choose bet!een the fulfillment an the rescission of the obligation. .it4i = mo t4s or $ ye)rs.t4e +ebtor lost 4is ri(4t to m)6e use o.s a period for the benefit of both the creditor and the debtor? No.)s sti/ul)te+ t4)t 4e #) use t4e #)r be-ore t4e )rri3)l o. !ith Articles 13.t4e /ri #i/le t4)t ) /erio+ is bot4 -or t4e be e-it o.

.t4e +ebtor still 4)s ot4er /ro/erties e3e i.t4e obli()tio . I. unless he imme iatel# gives ne! ones e"uall# satisfactor#7 +4. But i. By t4e t4e obli()tio is #o 3erte+ i to ) sim/le obli()tio ) + t4e o e #4ose .t4e im/ossibility o.) #4oi#e.o e o.oul+ ot 4)3e le-t 4im mo ey i.4)t . in consi eration of !hich the cre itor agree to the perio 7 !D' &hen the ebtor attempts to abscon .t4e /er-orm) #e o.t4e +ebtor1 t4e obli()tio is ot e5ti (uis4e+ !+eb)t)ble o t4e se#o + s#e )rio'.o e o.ill ot result i t4e e5ti (uis4me t o. I.t4e #4oi#e is .t4e /rest)tio . I.t4e obli()tio be#)use t4ere is ) ot4er or t. he becomes insolvent.obli()tio i 3ol3e+. unless he gives a guarant# or securit# for the ebt7 +2.)s +ue to ) -ortuitous e3e t1 u less o#ourse 4e (i3es ) ot4er se#urity -or t4e +ebt. Cinds of obligations as to multiple prestations9 .)s /ro3i+e+ t4)t t4e #4oi#e is .&hen b# his o!n acts he has impaire sai guaranties or securities after their establishment.)s ot #4ose 1 t4e obli()tio is ot e5ti (uis4e+.t4e obli()tio be#omes im/ossible to /er-orm +ue to ) -ortuitous e3e t1 t4e obli()tio is e5ti (uis4e+.t4ere .&hen he oes not furnish to the cre itor the guaranties or securities !hich he has promise 7 +3.o secure the fulfillment of his obligation he mortgaged his house and lot& Before the arri$al of the period 7before the obligation became due8. As su#41 t4e obli()tio is e5ti (uis4e+.n number of Art& )F.)s )lre)+y ) #ommu i#)tio o.)s t4e ot4er /rest)tio .4)t be#ome im/ossible . I #o 2u #ti3e obli()tio s1 t4e im/ossibility o/er-orm) #e o. U +er t4e l).)s +ue to 4is -)ult1 4e 4)s ot4er /rest)tio s to #4oose -rom . and the remaining A borrowed a sum of money from B& .n multiple prestations where one of the prestation is impossible to perform e$en if the other prestation still are possible to perform. B’s car was lost due to the fault of the debtor. Why would the debtor lost his right to ma=e use of the period when the lost was due to a fortuitous e$ent and the same is not imputable to the fault of the debtor? T4is is be#)use t4e #re+itor . It m)y be ) #o 2u #ti3e obli()tio 1 )lter )ti3e obli()tio 1 -)#ult)ti3e obli()tio .be-ore substitutio t4e im/ossibility oo e o.it4 t4e +ebtor1 u less ot4er. I )lter )ti3e obli()tio s1 i.4i#4 .it s4o. an !hen through a fortuitous event the# isappear. the first two prestations become impossible to perform due to the fault of the debtor. Can the debtor be compelled to pay? <e lost 4is ri(4t to m)6e use o.+1. .)y1 t4ere is yet o +ue /rest)tio be#)use t4e +ebtor 4)s ot yet )ble to m)6e ) #4oi#e. Con1unctive9 an 7 alternative9or7 facultative9 ebtor has the right to ma)e a substitution or to perform instea a substitute prestation.o e . I. it . how can the debtor gi$e another security if the debtor is already insol$ent? I.s t4)t t4e #4oi#e is ot e5/ressly (r) te+ to t4e #re+itor1 t4e ri(4t o.ise e5/ressly (r) te+ to t4e #re+itor.it is +ue to ) -ortuitous e3e t.o or more ot4er obli()tio s to be /er-orme+.)s t4e /ri #i/)l /rest)tio .ot -or t4e se#urity.he day after the creditor demanded the payment of the debt& Was there a $alid demand? 7es.)s t4e substitute /rest)tio ) + t4ere .it4out bei ( 4el+ li)ble -or +)m)(es. I.t4ere .4et4er t4ere is )lre)+y substitutio )t t4e time o.i -)#ult)ti3e obli()tio . A y.it4 t4e +ebtor1 e3e i.it .) #4oi#e but .)s )lre)+y ) #ommu i#)tio o.t4e obli()tio be#ome im/ossible to /er-orm +ue to t4e -)ult o. I -)#ult)ti3e obli()tio s1 it +e/e +s o .f howe$er in alternati$e obligations.&hen the ebtor violates an# un erta)ing.4o 4)s t4e ri(4t to #4oose. what are the remedies of the creditor? It +e/e +s o . the house was burned due to a fortuitous e$ent& .)s lost or be#)me im/ossible to /er-orm . may the obligation be considered to ha$e been extinguished? .#4oi#e /ert)i s to t4e +ebtor.t4e loss1 t4e obli()tio is ot e5ti (uis4e+ be#)use t4e +ue /rest)tio .)s t4e o e im/ossible to /er-orm es/e#i)lly i. It +e/e +s o t4e 6i + o.)s o substitutio yet )t t4e time o.t4e /erio+ e3e it4e lost . Or 4e m)y ot 4)3e ) y /ro/erties1 but 4e #) /ro3i+e -or ) (u)r) tor or ) se#ure ) mort()(e to se#ure t4e -ul-illme t o.&hen after the obligation has been contracte .4e is still i sol3e t.

negligence.f the creditor can demand for the performance of one of the rem a i n i n g prestations. .it4 t4e +ebtor.t4e #re+itor is to +em) + -or +)m)(es. T4e reme+y o.4i#4 .t4e obli()tio im/ut)ble to t4e +ebtor1 4e #) ot be 4el+ li)ble be#)use it #) be #o si+ere+ )s 4is #4oosi ( to m)6e t4e -irst t.)s )t -)ult t4ere-ore 4e #) be 4el+ li)ble -or +)m)(es u +er Art.t4e #4oi#e is .n alternati$e obligations the debtor is not sure whether he can deli$er the horse or not& if the horse was owned by the creditor. then after the second prestation was also lost due to the fault of the debtor. 11.t4e /rest)tio .t4e /er-orm) #e o.t4e .it4 multi/le /rest)tio s i.)s lost +ue to t4e -)ult o.he creditor can either demand for the $alue of the prestation with damages or he can demand for the performance of one of the remaining prestations without damages& 4econd $iew9 . the creditor may opt to demand for the $alue of the thing which was lost due to the fault of the debtor& . the debtor cannot be held liable for damages& .ill be b)se+ o t4e 3)lue o.it4 t4e +ebtor1 t4e li)bility . :or 4o.it4 t4e +ebtor1 4e #) ot be 4el+ li)ble -or +)m)(es e3e i. an those !ho in an# manner contravene the tenor thereof.)ys .t4e #re+itor #4ose to #om/el /er-orm) #e t4rou(4 t4e rem)i i ( /rest)tio s1 t4e +ebtor #) ot be 4el+ li)ble -or +)m)(es. T4is is be#)use t4e +ebtor +imi is4e+ t4e /ossibility o. or ela#. it is possible that the debtor is not the owner of the horse& . I. Art.4i#4 .4i#4 .o /rest)tio s im/ossible to /er-orm1 ) + t4e l)st /rest)tio be #o si+ere+ )s 4is #4oi#e.)s lost +ue to t4e -)ult o. #oul+ it be #o si+ere+ to -)ll i obli()tio s .e3er1 t4e /ro3isio s i Art.) y o. R)t4er it is better to s)y t4)t t4ere is o ly o e /rest)tio +ue i ) -)#ult)ti3e obli()tio .t4e #re+itor #4oose to +em) + -or t4e 3)lue ot4e obli()tio .t4e rem)i i ( /rest)tio s or #4oose t4e /rest)t)tio .f the principal prestation before substitution became impossible to perform due to the fault of the debtor .f one of the prestations become impossible to perform due to the fault of the debtor. as such he can see= damages& . T4e l)st t4ou(4 lost +ue to -ortuitous e3e t1 #) ot m)6e t4e +ebtor li)ble.t4e #4oi#e is . Bualification in Alternati$e 5bligation9 . When will the obligation in fac u l t a t i $ e obligation become due? I. and the choice is with the creditor9 .he horse was lost due to the fault of the debtor. 11?% /resu//oses ) sim/le obli()tio 1 ) + t4us ot )//li#)ble i t4e /rese t #)se to m)6e t4e +ebtor li)ble.)s lost l)st +ue to 4is -)ult.e3er1 i.he horse died due to the fault of the debtor. T4is is be#)use i -)#ult)ti3e obli()tio 1 t4e #4oi#e is )l.#4oi#e1 4e #) #4oose o t4e 3)lue o. +1101. <o.t4e obli()tio ) + se#o +ly 4e .t4ere is )lre)+y ) #ommu i#)tio substitutio .0. can the creditor demand to perform the substitute prestation? No. are liable for amages.4o 4)s t4e ri(4t to #4oose. Se#o +ly1 e3e i. I.t4e +ebtor1 t4e +ebtor #) be 4el+ li)ble -or +)m)(es.t4e loss o.t4ere is o ly o e /rest)tio i 3ol3e+. this time the creditor has the right to choose& What are the rights of the creditor? <e #) #4oose -rom o e o. and thirdly a boo= was lost due to the fault of the debtor& What is the extent of the liability of the debtor under the foregoing circumstances? Can the creditor choose for the $alue for any of the three prestations? It +e/e +s o .n alternati$e obligations it must be remembered that the prestation may either be owned by the debtor or not& :)#ult)ti3e obli()tio s I -)#ult)ti3e obli()tio s it is im/ro/er to s)y t4)t t4ere is o ly o e /rest)tio .t4e t4ree /rest)tio s.t4e l)st rem)i i ( /rest)tio .n this instance under alternati$e obligations. 11?%. .t4e #re+itor 4)s t4e ri(4t o. o.prestation becomes impossible to perform due to a fortuitous e$ent& Can the debtor be held liable for damages? T4e +ebtor #) be 4el+ li)ble i.t4is is t4e #4oi#e ot4e #re+itor.)s +ue to ) -ortuitous e3e t.f the thing lost was owned by the debtor as a $alid premise. But i.t4e +ebtor. I. At ) y (i3e /oi t i time t4ere #) o ly be o e /rest)tio +ue u li6e t4e ot4er /rest)tio s. <o.t4e obli()tio 4)s +imi is4e+ t4e /er-orm) #e o. 2hose !ho in the performance of their obligations are guilt# of frau .

T4e #re+itor ee+ ot sue e3eryo e.t4e li)bility is t4e +etermi i ( -)#tor t4)t t4e obli()tio is 2oi t or soli+)ry.it4 ) /e )l #l)use. &here. G5. +nArt. T4ere #) e3er be ) 3)li+ -)#ult)ti3e obli()tio .ri#e1 t4ere-ore it +i+ ot e5ti (uis4 t4e obli()tio .23. W4y s4oul+ t4e l).t4e +ebtor 4)s t4e ri(4t to m)6e ) substitutio .oul+ be B .it4out t4e substitute /rest)tio 4)3i ( bee )(ree+ u/o 1 it m)y be /re2u+i#i)l to t4e #re+itor be#)use su#4 . who would claim that it is a <oint obligation? It .22 an 1. how many can Y demand? It is ) 2oi t obli()tio u less -rom t4e sti/ul)tio ot4e /)rties or i t4e )ture1 or t4e l).4e A ) + B +eli3ere+ t4e 1%%% s)#6s to 8 it +i+ ot )#tu)lly e5ti (uis4e+ t4e obli()tio to 7 be#)use 4e +i+ ot re#ei3e ) yt4i ( -rom t4e 1%%% s)#6s o.)s re)lly t4e )(reeme t or t4e i te tio o. the partnership is liable therefor to the same e'tent as the partner so acting or omitting to act.ill be ) issue be#)use A m)y -ile ) )#tio )()i st A )s ) 2oi t +ebtor or ) soli+)ry +ebtor.4et4er o e o.ill be)r t4e lost1 but 4e #) ot be 4el+ li)ble -or +)m)(es.t4e +ebtors . b# an# !rongful act or omission of an# partner acting in the or inar# course of the business of the partnership or !ith the authorit# of co9partners. +nArt. can the debtor be held liable for damages by the creditor? T4e +ebtor #) ot be 4el+ li)ble -or +)m)(es be#)use t4)t .s the substitute prestation had already been agreed upon by the parties? 7es.4e is )lre)+y i +el)y 4e #) )lre)+y be li)ble -or +)m)(es. or an# penalt# is incurre . )llo. U +er t4e -)#ts1 . T4e +ebtor .it4 t4e obli()tio 1 t4e +ebtor #) be #om/elle+ to /er-orm t4e ot4er /rest)tio or t4e )##essory u +ert)6i (.6. T4ere .. 2he partnership is boun loss: to ma)e goo the A filed an action against B for the reco$ery of a sum of money& Would it matter if it is a <oint or solidary obligation? 7es. Ot4er.A o t4e ot4er 4) + .24.s soli+)rity.f the obligation is already impossible.t4e +ebtors #) be #om/elle+ t4e e tire )mou t. not being a partner in the partnership. 1.23. ) soli+)ry +ebtor.. Assuming there is an issue whether the obligation is a <oint or a solidary obligation. it s4o. +nArt. t4e +ebtor to m)6e substitutio is 4e is )lre)+y i +el)y.@A. even though onl# one of them shoul have been negligent. 1.oul+ +e-i itely #l)im t4)t t4e obli()tio is ) soli+)ry obli()tio ./A2Y Art. T4ere is ) +i--ere #e o ) )#tio -ile+ )()i st o e +e-e +) t or ) )#tio -ile+ )()i st ) +ebtor. A and B sold !!! sac=s of rice to X and Y& X demanded deli$ery of !!! sac=s of rice from A and B& A and B deli$ered the !!! sac=s of rice to X& Y did not recei$e anything out of the !!! sac=s of rice& Can Y still compel A and B to deli$er a portion of the !!! sac=s of rice& .564 45A.4o . loss or in1ur# is cause to an# person..oul+ #l)im t4)t t4e obli()tio is 2oi t. What would be an indication in a case which will warn the examinee on whether the obligation is <oint or solidary? T4e e5te t o. /2. can the debtor ma=e a substitution? No. the# shall be soli aril# liable for the loss or estruction of a thing evise or be"ueathe . 4f t!o or more heirs ta)e possession of the estate. A +e-e +) t m)y eit4er be ) 2oi t +ebtor or . 1.4o +em) +e+ /)yme t -rom o ly o e o. .t4e /)rties. Can the debtor ma=e the substitution if the debtor is already in delay? No. :or 4o. What obligations are considered solidary? -When can the debtor ma=e the substitution? T4e +ebtor #) m)6e t4e substitutio )t ) y time. . U/o o #om/li) #e . A6/ 5BA. T4e 0uestio is .ise i.4e is )lre)+y li)ble -or +)m)(es.ill (i3e t4e ri(4t to t4e +ebtor to +eli3er ) i -erior /rest)tio . T4ere is o se se to (i3e 4im ) ri(4t i.f before substitution became impossible to perform due to the fault of the debtor.22. Ot4er.f he can.)s ot t4e +ue /rest)tio . I. T4e /l)i ti-. #) t4e +ebtor m)6e ) substitutio it4e obli()tio is )lre)+y im/ossible1 u less it . All partners are liable soli aril# !ith the partnership for ever#thing chargeable to the partnership un er Articles 1.ise1 it is #o si+ere+ sim/ly )s ) obli()tio .4e t4e substitute /rest)tio 4)s ot bee )(ree+ u/o .

charges an e'penses. in case of absence or insufficienc# of the e'clusive propert# of the ebtor9spouse. liens. the pa#ment of !hich shall be consi ere as a vances to be e ucte from the share of the ebtor9spouse upon li"ui atio n o f t h e communit#7 an !1%' @'penses of litigation bet!een the spouses unless the suit is foun to be groun less. or b# both spouses. 1/11. u n l e s s t h e management !as assume to save the thing or business from imminent anger. e'cept those falling un er paragraph +/-.31Art. or other activit# for self9 improvement7 !?' Ante9nuptial ebts of either spouse insofar as the# have re oun e to the benefit of the famil#7 !J' 2he value of !hat is onate or promise b# both spouses in favor of their common legitimate chil ren for the e'clusive purpose of commencing or completing a professional or vocational course or other activit# for self9 improvement7 !&' Ante9nuptial ebts of either spouse other than those falling un er paragraph +.aArt. inclu ing ma1or or minor repairs. the principal is soli aril# liable !ith the agent if the former allo!e the latter to act as though he ha full po!ers. an liabilities incurre b# either spouse b# reason of a crime or a "uasi9 elict. 121. 1/4(.2he absolute communit# of propert# shall be liable for: !1' 2he support of the spouses.&here one partner acting !ithin the scope of his apparent authorit# receives mone# or propert# of a thir person an misapplies it7 an +2. upon the communit# propert#7 !D' All ta'es an e'penses for mere preservation ma e uring marriage upon the separate propert# of either spouse use b# the famil#7 !E' @ ' p e n s e s t o e n a b l e e i t h e r s p o u s e t o commence or complete a professional or vocational course. !hen there has been pa#ment of !hat is not ue. 2he responsibilit# of t!o or more persons !ho are liable for "uasi9 elict is soli ar#. or b# one spouse !ith the consent of the other7 !=' !=' >ebts an obligations contracte b# either spouse !ithout the consent of the other to the e'tent that the famil# ma# have been benefite 7 . the spouses shall be soli aril# liable for the unpai balance !ith their separate properties. +nArt.' All ta'es. &hen there are t!o or more bailees to !hom a thing is loane in the same contract. +nArt. +nArt. +1. he shall be liable for the acts of the elegate. their common chil ren. 4f the communit# propert# is insufficient to cover the foregoing liabilities.2he con1ugal partnership shall be liable for: !1' 2he support of the spouse. the# shall be soli aril# liable to the agent for all the conse"uences of the agenc#. 2he responsibilit# of t!o or more officious m a n a g e r s s h a l l b e s o l i a r #. !ithout pre1u ice to the irect obligation of the latter to!ar the o!ner of the business.1. Art.&here the partnership in the course of its business receives mone# or propert# of a thir person an the mone# or propert# so receive is misapplie b# an# partner !hile it is in the custo # of the partnership.of this Article. 21(. 4f t!o or more persons have appointe an agent for a common transaction or un erta)ing.. +?C. @ven !hen the agent has e'cee e his authorit#. the support of illegitimate chil ren of either spouse. 4f the officious manager elegates to another person all or some of his uties. or b# both spouses or b# one of them !ith the consent of the other7 Art. the support of illegitimate chil ren shall be governe b# the provisions of this Co e on %upport7 !$' All ebts an obligations contracte uring the marriage b# the esignate a ministrator9 spouse for the benefit of the communit#. an legitimate chil ren of either spouse7 ho!ever. +?C. an the legitimate chil ren of either spouse7 ho!ever. /4.4. 2he responsibilit# of t!o or more pa#ees./0aArt. 214*.. +n- !. +1. is soli ar#. +1. the# are liable soli aril#. 1/1(. 21/4. the support of illegitimate chil ren shall be governe b# the provisions of this Co e on %upport7 !$' All ebts an obligations contracte uring the marriage b# the esignate a ministrator9 spouse for the benefit of the con1ugal partnership of gains. their common chil ren.

be#)use )s ) rule 2oi t .t4e li)bility o. er o. Eay an insurance company of a $ehicle be held solidarily liable with the owner of the $ehicle . But t4e o.it4 t4e +ri3er u +er t4e #o tr)#t.t4ose . v o c a t i o n a l .it4out /re2u+i#e t4)t t4e /)rt ers bi +i ( t4emsel3es soli+)rily. an e'penses. . $1J. 4f the con1ugal partnership is insufficient to cover the foregoing liabilities. er is torts .) -)mily to /re3e t +)m)(e.)s e(li(e t1 i.t4e li)bility o.t4e i surer is t4e i sur) #e #o tr)#t . . may the partners be held solidarily liable? No.)l)y) I sur) #e 3s. T4e b)sis o.t4e o. Se#o +ly t4e b)sis o.4i#4 /ro3i+es -or soli+)rity1 but by t4e )ture o. U +er t4e l).4om o e is res/o sible. U +er t4e -ore(oi (1 t4e em/loyer ) + t4e o. er . er o.it4 4is +ri3er1 i. $1J.t4e 3e4i#le !Sio C4oy' ) + t4e t4e em/loyer o. CA' (or contractual obligations may the partners in a partnership be hold solidarily liable? .t4e li)bility o.it4i t4e e5t /re#e+i ( t. T4e b)sis o.4i#4 .4i#4 /ro3i+esC T4e obli()tio im/ose+ by )rti#le $1?E is +em) +)ble ot o ly -or o eKs o.)s ot i t4e 3e4i#le Art.4i#4 /ro3i+es t4)t i motor 3e4i#le mis4)/s1 t4e o.t4e 3e4i#le )re soli+)rily li)ble )s 2oi t tort-e)sors. @i$e an example of an obligation which is solidary by nature? T4e li)bility o.4o -i(ure+ i 3e4i#ul)r mis4)/s . Si #e t4e o.+ue +ili(e #e1 /re3e te+ t4e mis-ortu e it is +is/ut)bly /resume+ t4)t ) +ri3er .)s i t4e 3e4i#le1 #oul+ 4)3e1 by t4e use o. 555 555 555 Em/loyers s4)ll be li)ble -or t4e +)m)(es #)use+ by t4eir em/loyees ) + 4ouse4ol+ 4el/ers )#ti ( .4o .t4e 3e4i#le u +er bre)#4 o.t4e em/loyer is i Art. is ot )//li#)ble.t4e 3e4i#le is ot t4e em/loyer so Art.4e 4)+ bee -ou + (uilty ore#6less +ri3i ( or 3iol)ti ( tr)--i# re(ul)tio s )t le)st t.ill' s4oul+ be 4el+ soli+)rily li)ble ) + ot t4e i sur) #e #om/) y.)s ot i t4e motor 3e4i#le1 t4e /ro3isio s o.o mo t4s. $1J% . charges. I.4ere ) /erso is ) /)sse (er o. It is o ly t4e o. T4ere is o b)sis u +er t4e l).t4e mis4)/1 su#4 /)sse (er 4ol+ t4e o.o or more /erso s .t4e obli()tio t4ey )re 4el+ soli+)rily li)ble. the dri$er. er o.t4e o.4i#4 #oul+ ot m)6e t4e i surer be soli+)rily li)ble !. er .t4eir )ssi( e+ t)s6s1 e3e t4ou(4 t4e -ormer )re ot e ()(e+ ill ) y busi ess or i +ustry. o r o t h e r a c t i v i t # f o r s e l f 9 improvement7 !?' Ante9nuptial ebts of either spouse insofar as the# have re oun e to the benefit of the famil#7 !J' 2he value of !hat is onate or promise b# both spouses in favor of their common legitimate chil ren for the e'clusive purpose of commencing or completing a professional or vocational course or other activit# for self9 improvement7 an !&' @'penses of litigation bet!een the spouses unless the suit is foun to groun less.ell )s t4e +ri3er m)y be 4el+ li)ble u +er 0u)si +eli#t.ise ot )//li#)ble. inclu ing ma1or or minor repairs upon the con1ugal partnership propert#7 !D' All ta'es an e'penses for mere preservation ma e uring the marriage upon the separate propert# of either spouse7 !E' @ ' p e n s e s t o e n a b l e e i t h e r s p o u s e t o commence or complete a professional.4e t4e /erso s 4erei me tio e+ /ro3e+ t4)t t4ey obser3e+ )ll t4e +ili(e #e o. 555 555 555 T4e res/o sibility tre)te+ i t4is )rti#le s4)ll #e)se . er o.t. )#ts or omissio s1 but )lso -or t4ose o/erso s -or .oul+ m)6e t4em soli+)rily li)ble t4e #)se bei ( b)se+ o +i--ere t #)uses o)#tio .!=' >ebts an obligations contracte b# either spouse !ithout the consent of the other to the e'tent that the famil# ma# have benefite 7 !. the spouses shall be soli aril# liable for the unpai balance !ith their separate properties.' All ta'es.#o tr)#t to(et4er .t4e +ri3er !S) Leo Ri#e .it4i t4e s#o/e o.)rti#le $1J% m)y be )//li#)ble. T4ere is o l).t4e -ormer1 .C T4e res/o sibility o. . er is soli+)rily li)ble . liens. $1J% is li6e. er o.i#e . (or contractual obligations.4o )re li)ble -or ) "uasi9 elict is soli+)rily.o e )t t4e time o. er o.) (oo+ -)t4er o. T4e o.t4e 3e4i#le is Art.4ile t4e em/loyer ) + t4e o. and the employer of the dri$er? No.t4e 3e4i#le )s .

T4ere-ore it .t4e #om/romise )(reeme t ) + t4e +e#isio b)se+ u/o it1 t4e +e-e +) ts obli()te+ t4emsel3es to /)y t4eir obli()tio Li +i3i+u)lly ) + 2oi tlyL.t4e obli()tio is 2oi t1 it is ) +e-e se )s to t4e mi or but ot )s to B. A and B. debtors X and Y creditors& X filed an action against A.No.t4e -irst #)se s4)ll ot )--e#t t4e )#tio )()i st t4e ot4er +ebtor1 be#)use t4eir obli()tio s )re se/)r)te ) + +isti #t -rom e)#4 ot4er.ise ) +e-e se i soli+)ry obli()tio . I. Ro 0uillo 3s. today A demanded money from B.A ) + B )re soli+)rily li)ble ) + t4e )#tio )()i st A is +ismisse+1 ) subse0ue t )#tio )()i st B m)y /ros/er i.os)i+ )mou t T4e obli()tio i t4e #)se )t b)r bei ( +es#ribe+ )s Li +i3i+u)lly ) + 2oi tlyL1 t4e s)me is t4ere-ore e -or#e)ble )()i st o e o. how much can A reco$er from B? Can A reco$er interest? A m)y re#o3er D%M o. A )(reeme t to be Li +i3i+u)lly li)bleL u +oubte+ly #re)tes ) se3er)l obli()tio 1 1.it is t4e mi or is r)isi ( t4e +e-e se.t4e umerous obli(ors.f it is a defense.oul+ +e/e + o . I. What =ind of defense is minority? .s it partial or total defense? It +e/e +s1 i.4o 4)s t4e ri(4t to #4oose.4i#4 o e i +i3i+u)l bi +s 4imsel.t4e +ebt /)i+.e3er1 e3e i.s it a defense? . I. . 5ther word or phrase for solidary? Hoi t ) + #olle#ti3e1 2oi t ) + se3er)l1 2oi tly ) + i +i3i+u)lly. It is ) tot)l i. is <o.oul+ +e/e + o t4e +e-e se r)ise+ . .ee 8 ) + 7 t4)t 8 4)+ t4e ri(4t to #4oose. thereafter Y demanded payment from A. !See /ro3isio s )bo3e' NoteC I t4ese s#e )rios t4e e5)mi ee must be )ble to +etermi e u +er . 8 m)y still )ble to 4ol+ A li)ble +es/ite t4e -)#t t4)t 8 4)s )lre)+y /)i+ 7 i. T4eir obli()tio is se/)r)te ) + +isti #t -rom e)#4 ot4er. may the action be dismissed? It . T4e term Li +i3i+u)llyL 4)s t4e s)me me) i ( )s L#olle#ti3elyL1 Lse/)r)telyL1 L+is t i # t i 3 e l y L 1 res/e#ti3ely or Lse3er)llyL. 1D I t4e #)se o.4i#4 m)6e t4em soli+)rily li)ble. CA Cle)rly t4e 1 by t4e e5/ress term o.4e 4e /)i+ t4e obli()tio be-ore it .t4e +ismiss)l.ro ( /)rty. T4e s)me is li6e. A m)y re#o3er i terest -rom t4e +)te t4e obli()tio be#)me +ue ) + ot o t4e +)te .4)t 6i + o.t4e o e #l)imi ( t4e +e-e se is ) #o+ebtor1 it is o ly /)rti)l )s to t4e s4)re o. .4o si( e+ it i +i3i+u)lly li)ble -or t4e /)yme t o.)s +ue. A obliged himself to pay X or Y. X demanded payment from A.t4e -u )mou t o.-)#ts t4)t t4e +e-e +) ts m)+e t4emsel3es i +i3i+u)lly li)ble -or t4e +ebt i #urre+ t4ey )re e)#4 li)ble o ly -or o e-4)l.t4e obli()tio #o t)i e+ t4erei . ) + ) Lse3er)l obli()tio is o e by . the action was dismissed. A paid the creditors million last year. I.L Li6e. thereafter X filed an action against B.t4e /)rt ers bi + t4emsel3es soli+)rily ) + u +er #ert)i s/e#i-i# s#e )rios or e5#e/tio )l #ir#umst) #es u +er t4e #i3il #o+e . Ne(orr) 1? We 4el+ t4)t Li t4e )bse #e o.4ole obli()tio .4et4er it is 2oi t or soli+)ry. A and B are solidary debtors.obli()tio i 3ol3e+1 .t4e obli()tio is soli+)ry1 t4ere is more re)so t4)t t4e )#tio )()i st B s4oul+ li6e.4)t s/ e # i -i # #ir#umst) #es t4)t t4e +ebtor m)y be 4el+ soli+)rily li)ble. As ) rule 2oi t u less o.ise i U @)6 Leu ( 3s.t4e +e-e ses is /urely /erso )l to A1 li6e .t4e /erso s . Gemor) 1E We t4erei rule+ t4)t Lt4e /4r)se 2u tos or se/)r)+)me te or i t4e /romissory ote is ) e5/ress st)teme t m)6i ( e)#4 o. T4e t4e /)yme t by A to 7 is ) /)yme t to ) .it is u +er ) )(reeme t bet.it is ) 2oi t or soli+)ry obli()tio .) -i +i ( o.t4e obli()tio is 2oi t1 t4e +ismiss)l o.#ourse i.to /er-orm t4e .4e A is ) mi or. A paid Y& Eay X able to hold A liable? It +e/e +s o t4e i te tio o.s there a total defense in any =ind of obligation whether <oint or solidary and can be in$o=ed by any of the debtors? I.t4e obli()tio is 3oi+ it it ) tot)l +e-e se.t4e /)rties .t4e mi or.4i#4 is t4e b)sis o.@)rot 3s.ise be +ismisse+ si #e it 2oi t obli()tio is soli+)ry.

oul+ be ) i +i3isible obli()tio .4o m)+e t4e +em) + be#)use A #le)rly #) #4oose to /)y t4e obli()tio .4e it is +em) +)ble i )##or+) #e .oul+ +e/e + o i te tio or )(reeme t o.ill /ros/er )s to t4e s4)re o.i terests i # ) s e o .o e o.oul+ relie3e t4e +e3elo/er oli)bility.f the intention of the parties is not clear as to who has the right to choose. Wit4 res/e#t to A1 4e s4)ll be li)ble -or 4is s4)re /lus +)m)(es.t4e obli(or re-uses to /)y t4e /e )lty or is (uilty o.1 o #re+itor #) be #om/elle+ to )##e/t /)rti)l /er-orm) #e1 u less t4ere is ) sti/ul)tio to t4e #o tr)ry. . Si #e u +er t4e -)#ts1 8 .it4 t4e /ro3isio s ot4is Co+e.t4e obli()tio #o sists i +eli3eri ( ) -i ite t4i (.title be #o si+ere+ )s ) /e )l #l)use . may the action proper? Si #e t4is is ) 2oi t ) + i +i3isible obli()tio be#)use ) -i ite t4i ( is i 3ol3e+1 ) )#tio to +eli3er #) ot /ros/er si #e it is ) -i ite t4i (.:r) #is#o 3s.t4ere is o sti/ul)tio to t4e #o tr)ry. o.s there an obligation which is considered di$isible by nature e$en if there is no stipulation? I./er-orm) #e1 t4e obli()tio is #o 3erte+ i to ) mo et)ry obli()tio 1 ) + e)#4 ot4e +ebtor s4)ll e)#4 be res/o sible -or 4is s4)re i t4e )bse #e o.)s t4e -irst to m)6e t4e +em) +1 8 m)y still 4ol+ A li)ble. Robes.t4e obli()tio !Tole ti o' UribeC I.I. B and C obliged to deli$er a handy?dandy amaHing thing?a?ma?<ig.t4e /)rties. B #) ot be li)ble -or +)m)(es1 it is o ly A .it4 res/e#t to 4is s4)re1 si #e t4e sti/ul)tio is sile t )s to t4e +ebtors s4)re1 t4ey s4)ll s4)re e0u)lly. An obligation to pay di$isible obligation? million pesos is a A.B . T4e i t4is #)se /)yme t to 7 e5ti (uis4es t4e obli()tio . U +er t4e l). T4e /e )lty m)y be e -or#e+ o ly .t4e soli+)ry #re+itors .t4e obli()tio is to be /er-orme+ -or ) umber o+)ys li6e t4e #o stru#tio o. C:I .obli()tio s.t4e i te tio is ot #le)r1 it is t4e +ebtor s4oul+ be (i3e t4e ri(4t to #4oose. No it is ot ) /e )l #l)use be#)use e3e .i t4eir )(reeme t A 4)+ t4e ri(4t to #4oose1 t4e it +oes ot m)tter . t4e Without any express agreement on how the obligation is to be performed.Tole ti o is i #orre#t.4o 4)s t4e ri(4t to #4oose. T4is rule is )//lie+ be#)use t4is . T4ere-ore1 t4e 3ie.) buil+i (.n this case there was a stipulation that in case the de$eloper fail to issue a certificate of title after the amount is paid by the buyers. is it a di$isible or an indi$isible obligation? I. T4e l). X filed an action against B.o #om/li) #e1 i.t4e rules o soli+)ry obli()tio s is to be )//lie+ t4e t4ere is o re)so to m)6e /ro3isio s o ot4er 6i +s o.+esi( )tio o.!!! pesos to X& When the obligation to deli$er the thing to X is due the handy dandy amaHing thing?a?ma? <ig exploded due to the fault of A.it4 ) /e )l #l)use1 t4e /e )lty s4)ll substitute t4e i +em ity -or +)m)(es ) + t4e /)yme t o.it4 t4e +ebtor.t4e obli()tio . I obli()tio s .-r)u+ i t4e -ul-illme t o.t4ere is o )(reeme t it .4is s4)re ) + t4e o e )t -)ult s4)ll be li)ble -or +)m)(es. 1$$E. W4e t4e obli()tio is ) 2oi t ) + i +i3isible obli()tio 1 ) + t4e obli()tio 4)s be#ome im/ossible o.oul+ be #o +u#i3e to t4e -ul-illme t o.4i#4 is 1%1%%% . .t4e obli()tio . Not e#ess)rily1 be#)use it . . T4e rules o )lter )ti3e obli()tio s s4oul+ be )//lie+1 ) + u +er t4is rule1 t4e ri(4t to #4oose is . not your e$eryday complicated multi use tool worth %!. s4oul+ 4)3e m)+e )ll obli()tio s soli+)ry be#)use t4e s)me s4)ll be #o +u#i3e to t4e -ul-illme t o. Eay X still hold A liable? 8 m)y still 4ol+ A li)ble u +er t4e rules o soli+)ry obli()tio be#)use i. It is t4ere-ore i #o #ei3)ble t4)t t4e sub2e#t #l)use i t4e #erti-i#)te o. .s there an obligation which is considered by law an indi$isible obligation? I.EM /er ) um. Ne3ert4eless1 +)m)(es s4)ll be /)i+ i.4o #) be li)ble . I.i terests t4e +e3elo/er m)y still be 4el+ -or i terests )t t4e le()l r)te o. But t4e )#tio -or mo ey #l)ims . the de$eloper be liable to the amount of *I interest& Eay the de$eloper be held liable for damages? 5r should the *I int e r e s t compensate to the damages as a form of a penal clause? Art.it4out su#4 sti/ul)tio o.)s t4e -irst o e to m)6e ) +em) + 4e s4)ll be t4e o e .4i#4 .

t4e /e )l #l)use 4e m)y still be li)ble )si+e -rom t4e /e )lty.t4e /e )l #l)use1 t4e /)rty t4ereto #) be 4el+ li)ble u +er t4e /e )l #l)use. Breach of 5bligations9 4pecific circumstances affecting obligations I.M .t4e #i3il #o+e.ill be (o3er e+ by @4ili//i e l).t4e obli()tio is 3oi+ ) y )##essory u +ert)6i ( is li6e.4o i t4e /er-orm) #eG be#)use it is ot o ly t4e +ebtor .t4ere . T4e l).bot4 /)rties 4)3e -)it4-ully #om/lie+ . U +er Art.4i#4 me) s it is lo.4i#4 is t4e /ur/ose o. can the debtor compel the creditor to accept the penalty instead the debtor performing the obligation? As ) rule t4e +ebtor #) ot #om/el t4e #re+itor to )##e/t t4e /e )lty i ste)+ o.t4ere is sti/ul)tio .t4e obli()tio . 11?% ) + Art.)s -r)u+ ) + i.-r)u+1 e(li(e #e or +el)y #) be 4el+ li)ble -or +)m)(es.$%%1%%% )s +e#i+e+ by t4e Su/reme Court. As ) e5#e/tio 1 t4e +ebtor #) #om/el t4e #re+itor .t4e /)rties m)y be 4el+ li)ble or e3e ) t4ir+ /erso m)y be 4el+ li)ble -or +)m)(es i #urre+ by o e o.e3er1 . in case of $iolation may the debtor be still liable for damages in addition to the penal clause? As ) (e er)l rule1 t4e /e )l #l)use is #o si+ere+ )s ) substitute to t4e +)m)(es t4)t m)y be su--ere+1 4o.t4is #o tr)#t is +e#l)re+ ull ) + 3oi+1 t4e :ili/i o s4)ll be li)ble -or i +em ity. Can the creditor both demand f o r t h e performance of the obligation and the payment of the penalty agreed upon? Ge er)lly t4e #re+itor #) ot +em) + bot4 t4e /er-orm) #e ) + )t t4e s)me time #om/el to +em) + -or t4e /e )lty1 e5#e/tC i. I. )s to t4e 3)li+ity o.t4e ullity o. may a party be held liable under the penal clause? Or+i )rily o1 be#)use ) /e )l #l)use is ) )##essory u +ert)6i (. (raud :r)u+ 4ere me) s -r)u+ i t4e /er-orm) #e o.f the penal clause agreed upon is !!. 11?11 t4ere is ) e5isti ( obli()tio . As ) e5#e/tio i. Su#4 .t4e #o tr)#t. s)ys Ft4ose .!!! but the damages sustained is "!!&!!!. :or i st) #e1 i.4o i ) y m) er #o tr)3e e t4e te or o.Besi+es t4e le()l i terest is EM1 t4e i terest is o ly #4)r(e+ )t .f the obligation is $oid and there is a penal clause.t4)t #o tr)#t .ise m)y be 4el+ li)ble li6e i.4o i t4e /er-orm) #e o. A ot4er (rou + is i.su#4 ri(4t is #le)rly (r) te+ to 4im.t4e obli()tio .t4ere is o e(li(e #e1 -r)u+ or +el)y t4ose . Assuming that a penal clause is contained in a contract. Note t4)t e3e i.t4e /)rties is ) -ili/i o1 i. .o e o. @e )lty s4oul+ #4)r(e ) bi((er )mou t1 .t4e /)rties or ) t4ir+ /erso . .t4e te or #) be t4e b)sis o. . I. <o.4ere t4is ri(4t 4)s bee e5/ressly reser3e+ -or 4im )s /ro3i+e+ i )rt. U +er 11?% t4ose . #) ) lo.it4 t4e /ro3isio s o.t4ey #ommit -r)u+ or i +el)y m)y be 4el+ li)ble -or +)m)(es.ise 3oi+.4o m)y be 4el+ li)ble -or +)m)(es. how much shall the creditor be entitled? T4e #re+itor s4)ll be e title+ to 1%%1%%% /lus )#tu)l +)m)(e o.li)bility. T4is m)y ot be e5/ressly (r) te+ or sti/ul)te+ be#)use it m)y be i -erre+ by t4e )#ts o.4e t4e +ebtor -)ile+ to #om/ly .t4e /)rties.t4ere .t4e obli()tio . e$en assuming there was fraud. Cre+itors li6e.t4e obli()tio )re (uilty o.oul+ (i3e rise to t4e e -or#eme t o.er. .it4 t4eir res/e#ti3e obli()tio s1 o o e m)y be 4el+ li)ble.t4e obli()tio s4)ll )lso be li)ble -or +)m)(es./er-ormi ( t4e obli()tio 1 t4e #re+itor #) #om/el t4e +ebtor to /er-orm t4e obli()tio .er i terest be ) /e )l #l)use. T4ere-ore i.) /e )lty.t4ere is ) obli()tio 1 o e o.ill be ) 3)li+ /e )l #l)use.)s )lre)+y ) #om/li) #e o.n an obligation with a penal clause. Eay the court reduce the amount of the penalty agreed upon in the penal clause? T4e #ourt m)y re+u#e t4e /e )lty i.1 t4e )lie 4)s e3ery ri(4t to rely o t4e @4ili//i e l). Ge er)lly1 o /er-orm) #e or #o tr)3e tio o. 1$$? o.

)s ot .-uture -r)u+' t4e .t4e obli()tio .*.ill m)6e t4e #o tr)#t 3oi+)ble. is calle a "uasi9 elict an is governe b# the provisions of this Chapter.G) (#o 3s. that !hich is e'pecte of a goo father of a famil# shall be re"uire .)s #ommitte+ !.4i#4 is t4e omissio o. A-ter #o si+eri ( t4e )ture o. 11?=1 t4is is t4e best +e-i itio oe(li(e #e . )bo3e is 6 o.4i#4 #oul+ be t4e b ) s i s o +etermi i ( .e3er1 t4is .)i3e 4is ri(4t to (o )-ter t4e /)rty #ommitti ( t4e -r)u+. . S)y i. I t4e #)se o. $1?E .4i#4 must be #o si+ere+ is t4e time1 t4e /erso ) + t4e /l)#e.RR1 t4e Su/reme #ourt rule+ t4)t t4e )#t o.)i3ers <ere t4e t4e l). if there is no pre9e'isting contractual relation bet!een the parties. )s +olo i #i+e te. Art.)s ) +ri3er1 i.t4e +ili(e #e re0uire+ by t4e )ture ot4e obli()tio . I. It is merely i #i+e t)l1 ) + t4is .)i3er e5e#ute+ i rel)tio to t4e -r)u+ule t )#t. T4e most im/ort) t t4i ( to +etermi e . 1=JJ 6 o. 1=. Ne(li(e #e is 2ust ) omissio o.e3er i. T4is is #)lle+ #)us)l -r)u+ or +olo #)us) te. of the time an of the place.oul+ #o3er bot4 -)ult ) + e(li(e #e is Cul/).-r)u+ . <o.) /erso sle/t o ly -or t.so m) y /eo/le. 4nci ental frau onl# obliges the person emplo#ing it to pa# amages. .1.)i3er is 3oi+. T4e term F"oloG #) ot be use+ u +er Art.4e . <o.4i#4 . the provisions of Articles 11. 11. 4f there are t!o or more alienations.or+ .4e sle/t -or t. o #o tr)#ts1 t4ere is -r)u+ i obt)i i ( #o se t. )s 0u)si +eli#t is -)ult u +er Art.li)bility -or +)m)(es. there being fault or negligence.)i3er o. !henever. is oblige to pa# for the amage one.)li(4ti ( -rom t4e tr)i . 11.o se#o +s1 it . T4is #) be +o e t4rou(4 ) . As su#41 t4e ot4er /)rty #) 4ol+ t4e /erso em/loyi ( -r)u+ li)ble -or +)m)(es.o se#o +s1 t4e is e(li(e #e1 4is omissio .. T4ere-ore1 o e t4i ( t4)t s4oul+ be #o si+ere+ i /roblems i 3ol3i ( .1 an 2201..-r)u+ .oul+ #)use t4e +e)t4 o. I. )s +olo #)us) te1 ) + . +e-i es e(li(e #e .. or ela#. shall in emnif# the latter for amages suffere b# them on account of the alienation. it shoul be impossible for him to return them.0. U li6e t4e ot4er 6i + o.4et4er ) )#t is ) e(li(e t )#t or ot.4et4er to m)6e 4im e(li(e t or ot. negligence.4i#4 )re i t4e l).)i3er. Art. are liable for amages. &hen negligence sho!s ba faith.oul+ be u +er Art. a n so o n successivel#.t4e obli()tio 1 ot4er t4i (s .3.Art.) obli()tio #) be t4e b)sis o. Art. Dow do u =now that an act is negligent or not? U +er Art. paragraph 2. ue to an# cause.4i#4 #) be t4e b)sis oli)bility1 t4e ot4er /)rty #) )#tu)lly .t4e -r)u+ em/loye+ u/o 4im Wit4out su#4 -r)u+ 4e .s negligence synonymous to fault? No.oul+ ot 4)3e e tere+ i to su#4 #o tr)#t.t4e .. shall appl#.4e . <o.4et4er ) /erso is e(li(e t or ot is to #o si+er t4e )ture o.)s t4e . 6esponsibilit# arising from frau is eman able in all obligations.4i#4 /ro3i+esC Art. %uch fault or negligence. 2he fault or negligence of the obligor consists in the omission of that iligence !hich is re"uire b# the nature of the obligation an correspon s !ith the circumstances of the persons.t4e +ili(e #e re0uire+ . 11?% s4oul+ be #)lle+ m)li#e or b)+ -)it4. 1344. O e . 6egligence Ne(li(e #e1 ot4er.) #o tr)#t1 u li6e #)us)l -r)u+ . &hoever ac"uires in ba faith the things alienate in frau of cre itors.-r)u+ i obt)i i ( #o se t .4i#4 . an those !ho in an# manner contravene the tenor thereof. &hoever b# act or omission causes amage to another. 11?% be#)use +olo re)lly is +e#eit )s use+ i Art. it shoul be serious an shoul not have been emplo#e b# both contracting parties. 11. +1101Art.oul+ +e/e + o 4is 2ob o . 4f the la! or contract oes not state the iligence !hich is to be observe in t h e performance.ise 6 o.. I i #i+e t)l -r)u+ . Art. 13. +1102a- is1 . 2hose !ho in the performance of their obligations are guilt# of frau .ill o ly m)6e ) /erso li)ble -or +)m)(es i em/loyi ( su#4 -r)u+.e3er1 i Art. An# !aiver of an action for future frau is voi . 11?%1 t4e /er-orm) #e o. the first a c " u i r e r s h a l l b e l i a b l e fi r s t .4ile -r)u+ i Art 1=. A /erso m)y e ter i to ) #o tr)#t be#)use o.)s #ommitte+ . <o.ill ot )--e#t t4e 3)li+ity o. 4n or er that frau ma# ma)e a contract voi able.4ere)s -)ult m)y )#tu)lly be i te tio )l i #4)r)#ter.)i3er is e5e#ute+ be-ore t4e -r)u+ule t )#t .e3er t4ere is ) ot4er 6i + o. 21.4i#4 )re ot #)us)l i #4)r)#ter.

) e(li(e t )#t be#)use o.4e 4e .li)bility -or mor)l +)m)(es.or) A##i/ie +i . 4e .) s t ) s ) ( r o s s l y e(li(e t ) # t 1 ) + 2uris/ru+e #e . /elay "el)y is )lmost sy o ymous t4is time to +e-)ult1 or mor).)s .)s .oul+ be #rimi )l e(li(e #e . Note 4o.t4e /)rties.t4e +ebtor.t4e #ir#umst) #es surrou +i ( t4e e3e t. U +er t4e belo.)s o b)+ -)it4. I ot4er .ill tell you t4)t Gross e(li(e #e )mou ts to -r)u+.11E& is o e (oo+ /ro3isio o ) obli()tio . . W4e t4ere is ) sti/ul)tio to t4e e--e#t t4)t t4e ot4er /)rty must #om/ly .)s b)+ -)it4 or t4ere . .)s )t 4is /rime.4e t4ey -)ile+ to se + t4e mess)(e +ue to )tmos/4eri# /ressure1 )//)re tly t4ere .)s /)i+ by So/4i) but mor)l +)m)(es .t4ere . T4ere-ore it )//e)rs to be b)+ -)it41 .)s m)+e. "em) + 4ere is ot e#ess)ry -or t4e obli()tio to be +ue1 r)t4er +em) + 4ere is e#ess)ry i or+er to 4ol+ t4e ot4er /)rt li)ble be#)use 4e is )lre)+y i +el)y. o /)rt ers4i/1 .e3er1 t4)t i or+er -or +el)y to set i t4e l).+em) + -rom t4e o +e-)ulti ( /)rt ers1 4e is +eeme+ by l). A /erso m)y still be 4el+ li)ble e3e i. By Sti/ul)tio b. o. 11E& )s i ter/rete+ by t4e Su/reme Court s4oul+ be re)+ or i ter/rete+ to me) t4)t t4ere . <e .ill be 4el+ li)ble -or i terests but )lso -or +)m)(es. <o.)s ). I. W4e t4e rel)ti3es 6 e. It is ) im/ort) t -)#tor i +etermi i ( e(li(e #e1 be#)use i.f a party to an obligation was able to comply with his obligation. to be i +el)y.) /)rty to t4)t #o tr)#t 4)+ )lre)+y #om/lie+ . re0uires +em) +1 su#4 is o ly ) (e er)l rule.4i#4 #) be t4e b)sis o.4)t 4)//e e+1 t4e +e#e)se+ . It4e e(li(e t )#t is ) )#t /u is4e+ by l).)s o )(reeme t )s to t4e . nonetheless may he be considered in delay? 7es.it4out ee+ o.)r+e+ i.) obli()tio ) + ot t4e e(li(e #e )s ) se/)r)te sour#e o. 0uote+ /ro3isio /)rti#ul)rly t4e l)st /)r)(r)/4 o.4)t 4e is ot su//ose+ to +o1 4e is )#tu)lly -ul-illi ( 4is obli()tio .e3er1 t4e Su/reme Court o et4eless 4el+ Tele-)st li)ble -or +)m)(es be#)use t4ey -)ile+ to i -orm So/4i) i.4i#4 is +e-)ult o t4e /)rt o. <o.4et4er t4e )#t is sim/le e(li(e #e or ) (ross e(li(e #e.4i#4 #) be t4e b)sis oli)bility u +er +eli#t.or+s1 t4is /ro3isio is sub2e#t to t4e sti/ul)tio o.it4 re#i/ro#)l obli()tio su#4 )s t4)t o.Tele-)st 3s. As su#41 t4e Su/reme Court #o si+ere+ t4e )#t oTe l e . A +em) + letter ee+ ot be ot)riAe+1 ) /ri3)te +o#ume t .is )bout to )li(4t . .4ere it /ro3i+e t4)t .)s be#)use ot4e #ir#umst) #es surrou +i ( t4e /erso oC) (#o be#)use t4e Su/reme Court +is#usse+ t4e #ir#umst) #e t4)t 4e . 4e s4)ll )lre)+y be #o si+ere+ i +el)y1 e3e io +em) + .it4 4is obli()tio ) + t4e ot4er 4)s ot1 u +er t4e l). su#4 )s i t4e l).t4e ).t4e #re+itor. Tele-)st . Tele-)st 0uestio e+ t4e 3)li+ity o.)r+ -or mor)l +)m)(es #) o ly be ).)r+ -or mor)l +)m)(es be#)use t4ey s)i+ t4)t i #o tr)#ts1 t4e ).)r+e+ by t4e #ourt.or) Sol3e +i or +e-)ult o t4e /)rt o.t4e /)rties 4)s /er-orme+ 4is obli()tio .riti (1 it ee+ ot be i ) y /)rti#ul)r -orm.)s )lre)+y burie+ so t4ey -ile+ ) )#tio )()i st Tele-)st. But .o e o.4e ) /)rt er -)ils to m)6e 4is #o tributio o t4e +)te )(ree+ u/o 1 e3e . C)stro1 t4e res/o +e t So/4i) C)stro )s6e+ tele-)st to se + ) -)5 mess)(e i t4e U ite+ St)tes to tell 4er rel)ti3es t4)t 4er mot4er )lre)+y +ie+1 tele-)st .t4e -)#t t4)t t4ey -)ile+ to se + t4e mess)(e. <o. T4e +em) + 4ere ee+ ot be i .1 su#4 )s t4ose u +er t4e Re3ise+ @e )l Co+e1 t4)t . T4ere-ore1 t4ere is ) ee+ to +etermi e .4e t4e ot4er /)rty is to /er-orm 4is obli()tio .s)le.obli()tio .e3er1 t4e s)me e(li(e t )#t u +er +eli#t #) be t4e b)sis o.li)bility u +er 0u)si +eli#t.oul+ be #o si+ere+ ) e(li(e t )#t. re0uires +em) +1 ) + -or +em) + to be ) 3)li+ o e t4e obli()tio must )lre)+y be +ue.illi ( to retur t4e mo ey t4)t . :or +el)y to set i t4e l).t4ere is o +em) +1 li6eC ).)s still ru i ( )t 1J% 6mN4r ) + 4e )li(4te+ -rom su#4 tr)i 1 ob3iously t4)t . NoteC Ne(li(e #e u +er t4is to/i# is ) e(li(e #e i t4e /er-orm) #e o.) /)rty i t4e #o tr)#t. <o.) to +isre()r+ o.)s )bout to )li(4t -rom t4e tr)i .e3er1 i t4e #)se o.it4 t4e obli()tio 1 =% +)ys -rom +eli3ery1 t4e t4e ot4er /)rty #) ot be #o si+ere+ i +el)y e3e i. Can there be a delay in obligations not to do? No1 be#)use )s lo ( )s o e is ot +oi ( . @rim)rily it .)s ot )ble to se + t4e mess)(e1 )lle(e+ly be#)use o)tmos/4eri# /ressure.it4 res/e#t to time.oul+ su--i#e.)s )bout to sto/ .t4e obli()tio o. By l).4e t4e tr)i . . T4is is +e-)ult or +el)y .oul+ ri+e t4e tr)i e3ery+)y1 ) + t4e tr)i .e3er1 Art.

2he same rule applies to an# amount he ma# have ta)en from the partnership coffers.s such contention tenable? No. +1*. !. +1100a- Art.t4e +em) + be#omes useless +ue to t4e -)ult o. Art. being able to save either the thing borro!e or his o!n thing. A(#)oili 3s.4e . U +er t4e -)#ts Art. .it4 ) roo-.bot4 /)rties )re i +el)y1 . an on those !hich he still o!es after the e'tinguishment of the agenc#. an his liabilit# shall begin from the time he converte the amount to his o!n use.4e bot4 )re i +el)y1 o o e is #o si+ere+ to be i +el)y1 4e #e1 o o e #) be 4el+ li)ble -or +)m)(es1 or o o e #) 4)3e ) #)use o. the eman b# the cre itor shall not be necessar# in or er that ela# ma# e'ist: !1' &hen the obligation or the la! e'pressl# so eclare7 or !$' &hen from the nature an the circumstances of the obligation it appears that the esignation of the time !hen the thing is to be elivere or the service is to be ren ere !as a controlling motive for the establishment of the contract7 or &hen eman !oul be useless. 1.44a an 1. GSIS I. !=' 4n reciprocal obligations. Cristine went to a <ewelry shop to ha$e her <ewelry cleaned and it should be returned to her after a wee=. I. A partner !ho has un erta)en to contribute a sum of mone# an fails to o so becomes a ebtor for the interest an amages from the time he shoul have complie !ith his obligation.)s )lre)+y i +el)y.t4e +ebtor..Be#)use bot4 )re i +el)y. ela# b# the other begins. 11ED .t4e -)ult o.' 4f he len s or leases the thing to a thir person. or after the accomplishment of the use for !hich the commo atum has been constitute 7 4f the thing loane has been elivere !ith appraisal of its value.t4e #re+itor1 t4e o. 2hose oblige to eliver or to o something incur in ela# from the time the obligee 1u iciall# or e'tra1u iciall# eman s from them the fulfillment of their obligation.+ue to ) -ortuitous e3e t1 t4e obli(or . so she has to return again after another wee=& When she returned bac= after another wee=& 4he was informed that the ring was lost because of an alleged robbery that too= place& Claiming that robbery is fortuitous e$ent. :e shall also be boun for !arrant# in case of eviction !ith regar to specific an eterminate things !hich he ma# have contribute to the partnership. 2he agent o!es interest on the sums he has applie to his o!n use from the a# on !hich he i so. 1/42. Agcaoili suspended the payment of the monthly amortiHations& @4.)#tio by ) + bet.n this case. A(#)olili -)ile+ to /)y 4is mo t4 )mortiA)tio .Art. he chose to save the latter. W4e t4e +em) + be#omes useless +ue to -ortuitous e3e t1 ob3iously t4e obli()tio s4)ll be e5ti (uis4e+..4(- #.24aArt. neither part# incurs in ela# if the other oes not compl# or is not rea # to compl# in a proper manner !ith !hat is incumbent upon him. unless there is a stipulation e'emption the bailee from responsibilit# in case of a fortuitous event7 !$' !=' .ee t4e /)rties. T4e GSIS o ly +eli3ere+ ) stru#ture . 1.#ourse t4e #re+itor #) ot 4ol+ t4e +ebtor li)ble -or +)m)(es. when she returned after a wee= the <ewelry shop told her that the <ewelry had not yet been cleaned. !ho is not a member of his househol 7 !D' 4f./*. as !hen the obligor has ren ere it be#on his po!er to perform. I ) obli()tio to +eli3er ) +etermi )te t4i (1 ) + t4e t4i ( .*. @ver# partner is a ebtor of the partnership for !hatever he ma# have promise to contribute thereto. even if it shoul be through a fortuitous event: !1' 4f he evotes the thing to an# purpose ifferent from that for !hich it has been loane 7 4f he )eeps it longer than the perio stipulate .oul+ be 4el+ li)ble -or +)m)(es i.ill be its e--e#t> U +er t4e l). +. 1. :e shall also be liable for the fruits thereof from the time the# shoul have been elivere .. ?rom the moment one of the parties fulfills his obligation.4)t . in the same cases an in the same manner as the ven or is boun !ith respect to the ven ee. then the <ewelry shop cannot be held liable& . 11*/. T4is /resu//ose+ t4)t +em) + be#omes useless be#)use o.4 cancelled the contract& Was @4.1 . +1.4ile GSIS is )lso i +el)y i ot +eli3eri ( ) 4)bit)ble 4ouse.4 correct in cancelling the contract? No. +1. :o!ever. !ithout the nee of an# eman . W4e +em) + be#omes useless.)s lost e3e i.t4e esse #e i t4is #o tr)#t. W4e /erio+ is t4e #o trolli ( moti3e.1aArt.. 2he bailee is liable for the loss of the thing. <ere t4e time is o.oul+ )//ly.

)s ) e5/ress sti/ul)tio 1 i. T4e B s4oul+ 4)3e m)+e t4e +em) + o ly o .it4 res/e#t to t4e reme+ies -or bre)#4 o.Cle)rly1 t4e 2e.t4e /l)i ti-. he ma# as) that the obligation be complie !ith at the e'pense of the ebtor.)s li)ble be#)use it rele)se+ t4e . 11*(.t4ere . 2emedies for Breach of 5bligations NoteC T4e -irst t4i ( to #o si+er i ) /roblem .t4e obli()tio re0uires t4e )ssum/tio o.. does it mean that he will be liable for damages? Not e#ess)rily.is ot t4e )((rie3e+ /)rty1 4e .la! so provi es I. CA NA@OCOR .li)bility. .)s lost +ue to ) -ortuitous e3e t1 t4e s4o/ s4)ll be li)ble be#)use t4ere . in a ition to the right grante him b# Article 11.4e t4e +)m .t4e +em) +1 t4e obli()tio ..elry s4o/ .obli()tio s is t4e /l)i ti--1 be#)use i.o #om/li) #e .)s ) -ortuitous e3e t it4ere .ill ot /ros/er. @'cept in cases e'pressl# specifie b# the la!.e3er1 t4ere s4oul+ be o #o #urri ( e(li(e #e o t4e /)rt o.)s lost +ue to ) -ortuitous e3e t1 4e . Hu+i#i)l .)r#4 1E s4oul+ be t4e +em) + +)te1 be#)use i. the lessee was not able to return the machine because A’s truc= had a mechanical problem& 5n EArch # which was still in the lessee A was destroyed in a fire that started in a neighboring house. I.)ter .t4e l). 4f the thing is in eterminate or generic. 11**.4o is ot t4e )((rie3e+ /)rty . the cre itor. Reme+ies )re )3)il)ble o ly by t4e )((rie3e+ /)rties. no person shall be responsible for those events !hich coul not be foreseen.t4e +e-e +) t NA@OCOR. ma# compel the ebtor to ma)e the eliver#.)r#4 1?1 be#)use 1&JD is ot ) le)/ ye)r.)s ot yet +ue.o /erso s .ill ot 4)3e ) y reme+y u +er t4e l).Reme+iesC 1.4e t4e +)m .) le)/ ye)r ) mo t4 is $& +)ys.)s o ly $J +)ys.)s )lre)+y i +el)y.t4ere . or has promise to eliver the same thing to t!o or more persons !ho o not have the same interest.)r#4 1D1 t4)t ..)ter . <e #e1 to i 3o6e -ortuitous e3e t .hey agreed that the lease would only be for month. A#tio s by su#4 /erso s .)s ot yet i +el)y be#)use )t t4e time o. +10/*Art. Note 4o. It s4oul+ 4)3e rele)se+ t4e . N@C 3s. 11. which apparently is a fortuitous e$ent& Can the lessee be held liable for the lost of the machine? A #) ot be 4el+ li)ble be#)use e3e i.4.)s +ue to ) -ortuitous e3e t i. Noti#e to /erso s ot )ut4oriAe+ su#4 )s ) @%1 o--i#er is ot ) /ro/er oti-i#)tio . A leased a machine of B because he opened his own car repair shop& . NoteC Not e3ery time t4)t t4ere .0.ee6 time )s /romise+.(.)s ot yet -ull so t4)t t4e /ressure .) le)/ ye)r1 o.elry .t4e t4i (. Cl)ssi-i#)tio o. . E.by sti/ul)tio Art.ris6.oul+ relie3e NA@OCOR o. I ) ot4er #)se1 i t4e e3e t t4)t NA@OCOR . so /ro3i+es1 or be#)use t4e )ture o. +110(a- .oul+ rele)se t4e .)s )lre)+y ) +el)y .oul+ t4)t be ot mu#4 )s .t4e #re+itor or -ortuitous e3e t. the lessor demanded for the return of the machine& Dowe$er.. U +er Art.t4e l). in Earch > the next month.) +)m1 i or+er ot to be 4el+ li)ble ) /ro/er oti-i#)tio to t4e /ro/er )ut4orities is re0uire+. ) /)rty t4ereto #) be 4el+ li)ble e3e i. even though the# ma# not have been mentione . 4f the obligor ela#s. is =% +)ys. though foreseen.t4e +ebtor /romises to +eli3er t4e s)me t4i ( to t. or !hen it is other!ise eclare b# stipulation.#ourse .. or !hen the nature of the obligation re"uires the assumption of ris). &hen !hat is to be elivere is a eterminate thing. 2he obligation to give a eterminate thing inclu es that of elivering all its accessions an accessories. so /ro3i+esG.)s ) +em) + m)+e ) + t4e loss 4)//e e+ )-ter t4e +em) + . :rom :ebru)ry 1D to . 11?.)s m)+e1 t4e lessee . T4e +eli3ery must be m)+e o ly )-ter ) mo t41 ) + ) mo t4 u +er t4e l).4i#4 tr) s/ire+ i t4e #)se +ue to 4e)3y r)i -)ll1 t4ere s4oul+ be o #o #urri ( e(li(e #e o t4e /)rt o.)s ) -ortuitous e3e t or -or#e m)2eure #) be ) e5#use+ to o /er-orm) #e.oul+ result to so mu#4 +)m)(e. T4ere )re e5#uses to o /er-orm) #e1 i #om/lete /er-orm) #e or irre(ul)r /er-orm) #e. and the lease was entered only in (ebruary > of )F>.)ter o. Art.f a party to an obligation was not able to comply or it was not completely fulfilled or irregularly complied. :)ult o.. !ere inevitable. T4is is be#)use :ebru)ry . or !hich. he shall be responsible for an# fortuitous event until he has effecte the eliver#. E3e -or t4e -)#t1 t4)t t4e 2e..4i#4 .ill still be res/o sible -or t4e loss o.t4e /erso i 3o6i ( t4e +e-e se Ft4)t li)bility )tt)#4es e3e i..4o +o ot 4)3e t4e s)me i terest1 t4ere)-ter t4e t4i ( .4e t4e #re+itor -)ile+ to +eli3er t4e s)me )-ter )s .)s o ly $J +)ys.)s -ull.

11&1 ) + Art. U i3ers)l :oo+ Cor/. Res#issio u +er Art. E5tr)-2u+i#i)l =.)s t4)t . T4e re)so . #oul+ 4e be t4e i 2ure+ /)rty i. 1=J1. Ot4er. <o.#ourse u +er Art.4i#4 me) s t4)t it m)y be i 3o6e+ .)s t4)t .. 1=J1 t4e )#tio o. 1=J1.oul+ ot be ) 3)li+ +e-e se or reme+y. But i.: .res#issio but subst) ti)l bre)#4 or -u +)me t)l bre)#4. 11&1. is there a need for a breach for rescission to be in$o=ed? No. was this a $alid defense? It +e/e +s o t4e )ture o. 1=J1 is merely ) l)st resort.e3er1 .)s t4e #ore issue o . T4e res#issio u +er Art.)s -ile+ u +er Art.4et4er or ot .t4e #o -usio to res#issio u +er Art. ers4i/.4y res#issio is ) reme+y u +er Art.4e . T4us i. A /)rty is ot re0uire+ to e54)ust 4is ot4er reme+y be-ore 4e #) i 3o6e res#issio u +er Art. T4e +e-e se s4oul+ 4)3e bee #orre#t1 4o.4i#4 ) /)rty #) i 3o6e . Reme+ies . 11&1 s4oul+ 4)3e bee #)lle+ resolutio .: is su//ose+ to tr) s-er )ll 4is ri(4ts1 t4ere-ore it i #lu+es tr) s-er o.it4 4is obli()tio i t4e #o tr)#t1 t4ere-ore 4e s4oul+ 4)3e o ri(4t to res#i +.t4e )#tio .m)6i ( t4e #)tsu/. Si #e bot4 4)3e ot #om/lie+1 bot4 )re )lre)+y i +el)y1 ) + t4ere-ore1 o o e .o.)s /ro3i+e+ t4)t F. <o.t4is )#tio -or res#issio .) )#tio -or res#issio u +er Art.4i#4 is to An action for rescission was filed.t4e 3ie.t4e +e-e ses r)ise+ .HBL Reyes i t4is #)se /ro3i+e+ i subst) #e t4)t t4is +e-e se o. ers4i/.: 4)s t4e obli()tio to tr) s-er o. CA I t4is #)se1 o e o.: #l)ime+ t4)t 4is obli()tio to +eli3er is o ly to )llo. 11&1.$. 11&1. ers4i/. U:C t4e use o.o.or+s use+ i t4e +ee+1 is t4)t .t4ere is bre)#4 or -)ilure to #om/ly1 t4e )#tio .it4 4is obli()tio . I t4is #)se1 . 1=J11 it is merely ) subsi+i)ry reme+y . ers4i/.)s -ile+ be#)use obre)#4 o. Reme+ies /ro3i+e+ by l).res#issio m)y /ros/er e3e i. t4)t #o si+eri ( t4e .)s o obli()tio to +eli3er o.)s t4e o ly o e i si+e t4e l)bor)tory -or t4e /ur/ose o.res#issio . 11&11 t4)t is ot ) 3)li+ +e-e se be#)use u +er t4is /ro3isio 1 t4e reme+y is ) /ri #i/)l reme+y. ye)rs -rom t4e +)te o.)(+)lo :r) #is#o 4)s ot e54)uste+ 4is )3)il)ble .)s i -r)u+ o.4e t4e )+3erse /)rty 4)+ o ot4er le()l reme+y.#re+itors. T4)t +e-e se #) 3)li+ly be i 3o6e+ o ly i. 1=J1 is be#)use o.4)t is i #umbe t u/o 4im . T4is is be#)use t4ere )re $ 6i +s o. 3s.: to ret)i #o trol o3er t4e -ormul) 4e is bot4 t4e #4emist ) + )t t4e s)me time 4e .)(+)lo :r) #is#o 4)s )lre)+y #om/lie+ . :or res#issio to be ) reme+y1 or ) y reme+y to be i 3o6e+1 t4e /)rty #l)imi ( t4e reme+y must 4imsel. <o.e3er1 t4e res#issio .4et4er or ot . I or+er -or . <o. T4ere-ore1 u +er Art. 1=J% ) + 1=J1 u +er res#issible #o tr)#ts.it4 4is obli()tio . O.)s su//ose+ to tr) s-er )ll 4is ri(4tsG but t4e SC rule+ t4)t .ise1 4e #oul+ ot #l)im to be t4e )((rie3e+ /)rty. A ot4er issue r)ise+ or +e-e se r)ise+ .it4 .t4e )#tio .t4ere is o bre)#4 i t4e obli()tio be#)use o.e3er1 my /ro-essor is o. ers4i/. U/o #loser s#ruti y ot4e +ee+ o.t4e -ormul) ) + ot o. ers4i/.t4e #)tsu/1 4e #e t4ere . T4e it s4oul+ be rule+ t4)t .omissio or e#o omi# /re2u+i#e !U:C 3s.oul+ -)ll u +er Art.)(+)lo :r) #is#o 4)+ t4e obli()tio to +eli3er t4e -ormul) i t4e C)tsu/ to U:C.4e +i+ ot #om/ly . T4is .t4e #o tr)#t. <e #e1 4e is )ble to #om/ly .oul+ be i +el)y1 ) + res#issio ) + #) #ell)tio . CA'. W4ere)s i Art.it4 4is obli()tio 1 i -)#t 4e 4)s o obli()tio to +eli3er o.4e t4ere )re o ot4er )3)il)ble reme+ies !subsi+i)ry reme+y' reme+ies1 t4ere-ore t4e )#tio s4oul+ be +ismisse+.)s b)se+ o Art. . 1=J% ) + 1=J1 t4e +e-e se m)y 4)3e bee #orre#t be#)use it s4oul+ 4)3e bee -ile+ . <e #e1 Art.: ot bei ( )ble to #om/ly .t4e )#tio -or res#issio is b)se+ o Art.t4e #o tr)#t1 ) + i.: 4)+ t4e obli()tio to +eli3er or tr) s-er o. W4)t #oul+ be ) better ri(4t t4) t4e ri(4t to o. the defense raised was the action had already prescribed because the action had already prescribed year from the date of the contract.4)3e #om/lie+ . Sli(4t bre)#4 or #)su)l bre)#4 #) ot be t4e b)sis o. :urt4ermore1 u +er Art.o e54)ustio is ) result o. 11&1 ) + Art. T4is is ot t4e ri(4t res#issio 1 be#)use res#issio i t4e /ro/er se se is u +er res#issible #o tr)#ts.e3er1 )si+e -rom t4)t issue1 t4e Su/reme Court is im/e##)ble o t4e issue t4)t . :nder Art& %F .it4 4is obli()tio .it4i . T4ere-ore1 t4e Su/reme Court 4)s to +etermi e . 11&1 it is ) subst) ti)l reme+y. Is t4is ) 3)li+ +e-e se> I t4e #o #urri ( o/i io o.omissio or e#o omi# /re2u+i#e -or e5)m/le t4e )#t .)(+)lo :r) #iso 4)s ot #om/lie+ . 11&11 it is ot ) y 6i + obre)#4 t4)t m)y be t4e sub2e#t o. ers4i/1 t4e o +eli3ery ot4e -ormul) to U:C +oes ot m)6e .)ssi( me t it .: 4)s o obli()tio to tr) s-er o.4)t is tr) s-erre+ is o ly t4e use o. ers4i/ o3er t4e -ormul).

the seller did not accept the payment and told the buyer that the contract had already been rescinded& Was the rescission $alid? No. I t4e #)se o.it4 4is obli()tio . . I Res#issio t4e /)rty i 3o6i ( t4e s)me is -or t4e /ur/ose o.t4e res#issio ) + ot o ) l)ter +)te.e3er1 t4e im/ossibility o.it4 4is o. 4) +s. I t4e se#o + s#e )rio .)s ot ) -u +)me t)l bre)#4 or ) subst) ti)l bre)#4 ) + t4ere-ore #) ot be t4e b)sis o.n the case of 7Jhong 8 rescission was in$o=ed here because the buyer of molasses failed to pay the price agreed upon& Dowe$er the buyer offered to pay the seller "! days thereafter& Dowe$er. Note 4o. obli()tio . .ill be re3erte+ b)#6 to t4eir st)tus /rior to t4e time . I. for example has already in$o=ed fulfillment. Res#issio Res#issio 4ere is ) /ri #i/)l reme+y ) + is e5/ressly (r) te+ by l).)llo.K& A obliged himself to repair the piano of B& 6one of these were performed by A& Can the court compel A to U +er Art.e5/ressly (r) te+ u +er t4e l).)s sile t )s .) te+ t4e +e-e +) t to +o somet4i (1 or to #om/el 4im to +o somet4i (.4e ) /erso i 3o6i ( res#issio .it4 res/e#t to re#i/ro#)l obli()tio is mutu)l restitutio .s rescission a$ailable in unilateral obligations? No1 it is o ly )3)il)ble i re#i/ro#)l obli()tio s. +e Los A (eles1 t4is reme+y #) be i 3o6e+ e5tr)2u+i#i)lly. T4is is 6 o.t4e obli()tio 4)s be#ome im/ossible. . U:C to use t4e -ormul).. 11&1 it /ro3i+es -or t.m)6i ( t4e /erso ot to #om/ly . It is ot )3)il)ble to ) ot4er /)rty . . obli()tio .t4e im/ossibility o. 55 A obliged himself to deli$er to B a refrigerator with motor number wxy "%.4ere t4e /)rties )(ree+ to t4eir obli()tio s. T4e e--e#t o.he issue here is that if the aggrie$ed party to a contract in$ol$ing reciprocal obligations.it4 4is o. A + )s +e#i+e+ i o e #)se1 t4e +eli3ery o/)+lo#6s to t4e CO.4o.t4e +ebtor.)s +ue to t4e -)ult ot4e #re+itor1 o.) )#tio -or res#issio .4o i 3o6es t4e s)me ot to #om/ly . T4is is so be#)use ) /erso #) ot t)6e t4e l). may he thereafter be able to rescind the obligation? 5r if a person in$o=es rescission. i to 4is o. T4is i.t4e Su/reme Court i t4e #)se o.)s +ue to ) -ortuitous e3e t1 t4e 4e .AC/ . <e #e1 t4ere is ot4i ( more to be -ul-ille+.res#issio ./er-orm) #e ..o reme+ies1 )melyC 1' res#issio ) + $'-ul-illme t.oul+ ot 4)3e t4e ri(4t to res#i +. .ill ot 4)3e t4e ri(4t to res#i +1 or i. and a brand new sony bra$ia *!.e3er1 t4e /erso i 3o6i ( res#issio i or+er -or 4im to (r) t t4e #o tr)#t to ) ot4er /erso 1 t4e e5tr)2u+i#i)l res#issio . :ul-illme t or S/e#i-i# @er-orm) #e . )s t4e 2u+i#i)l /erio+.yri#6. I t4is #)se1 4e m)y ri(4t-ully res#i + t4e #o tr)#t )s 4e is ot i +el)y1 ) + it is o ly U:C is i +el)y.res#issio is to e5ti (uis4 t4e obli()tio .4o e5er#ise+ 4is ri(4t to res#i +1 t4ere is o more obli()tio to be -ul-ille+ si #e t4e e--e#t o.ELEC to be use+ i t4e ele#tio 1 but +eli3ere+ )-ter t4e ele#tio 1 it is #o si+ere+ ) subst) ti)l bre)#4.n what instance where <udicial rescission is re0uired? It is re0uire+ . I 2u+i#i)l res#issio 1 .=% +)ys .oul+ su--i#e. 55 " remedies under Art& ) 9 .. Eay the court after an action for rescission was filed allow the other party to perform the obligation? 7es.)(+)le ) Est)te 3s. T4is is t4e ruli ( o.4e t4e /)rty i 3o6es t4e s)me1 ) + it 4)s bee t4e sub2e#t o. T4e #ourt m)y (r) t t4e +ebtor to /er-orm 4is obli()tio . U +er t4e #ir#umst) #es t4e +el)y o..e3er1 it must be ote+ t4)t +e/e +i ( o t4e #ir#umst) #es1 $% +)ys m)y )lre)+y be #o si+ere+ ) subst) ti)l bre)#4 i.#ourse 4e .4o re-uses to #om/ly . I. can he thereafter demand fulfillment? A /erso i 3o6i ( -ul-illme t m)y l)ter o res#i + it4e -ul-illme t o.4ere t4e l).)//e)l to t4e Su/reme Court = ye)rs )-ter1 t4e e--e#t ores#issio is re#6o e+ -rom t4e time o.oul+ ot be ) )((rie3e+ /)rty1 t4ere-ore 4e .)s to be +ue to t4e -)ult o.4e ) )((rie3e+ /)rty .4i#4 me) s t4)t t4e rel)tio s4i/ ./er-orm) #e .t4e (oo+s is ) /eris4)ble (oo+s.res#issio t4ere-ore is -or t4e /erso .i 3o#)tio o.U@ 3s. T4e e--e#t o. <o.

oul+ 4)3e +o e to +e-r)u+ t4em is )#tu)lly res#issio u +er Art.su#4 i sol3e #y ) + t4e #ourt )bsol3e+ 4im -rom t4is obli()tio t4e 4is obli()tio s )re e5ti (uis4e+. he ma# as) that the obligation be complie !ith at the e'pense of the ebtor. Can the creditors ha$e all the properties of the debtor le$ied upon and sold in an execution sale? Not )ll t4e /rese t /ro/erties m)y be le3ie+ u/o . T4ese )re #o tr)#ts i -r)u+ o#re+itors. Wit4 res/e#t to t4e LC" TV t4e #re+itor m)y #om/el t4e +ebtor to +eli3er t4e TV e3e i. T4e -irst t. Asi+e -rom t4ose me tio e+ i Art. or has promise to eliver the same thing to t!o or more persons !ho o not have the same interest.subro()tory )#tio Be#)use t4ere )re ot4er ri(4ts . I )ll t4ese reme+ies1 +)m)(es #) be #l)ime+. he shall be responsible for an# fortuitous event until he has effecte the eliver#.4o bou(4t it i (oo+ -)it4 ) + -or 3)lue1 or . T4e reme+y o. To im/u( t4e )#ts .4o .%G LC" TV o. 11**. 1$=11 . e+ by ) ot4er /erso be#)use it is ) (e eri# t4i (.4ile t4e ot4er is ) i +etermi )te or (e eri# t4i (. ) + t4e rules o.ill o ly e title t4e #re+itor -or +)m)(es. I sol3e #y o.e3er1 i. T4e +ebtor m)y be #om/elle+ to +eli3er ) .perform these obligations? . 1$=1 is ot e5#lusi3e1 be#)use ) 2u+i#i)l +e#l)r)tio oi sol3e #y ) + t4e #ourt )bsol3e+ t4e +ebtor o. 2he obligation to give a eterminate thing inclu es that of elivering all its accessions an . T4ere-ore t4e /erso s i 3ol3e+ 4ere )re t4e +ebtors . in addition to the right granted him by Article '!.4i#4 )re /urely /erso )l i )ture.t4e +ebtor.4i#4 is /)rti#ul)rly +esi( )te+ -rom )ll ot4er o. Wit4 res/e#t to t4e re/)ir o.e5ti (uis4me t oobli()tio 1 2u+i#i)l +e#l)r)tio .t4e /erso )l 0u)li-i#)tio s o. 4f the obligor ela#s. But ote t4)t ot )ll obli()tio s to +o1 substitute /er-orm) #e is )3)il)ble1 be#)use t4ere )re obli()tio s to +o t4)t o ly t4e +ebtor #) /er-orm1 be#)use o.) /erso 1 4e #e #) ot be ) subro()tory )#tio . Be#)use t4ere )re #ert)i /ro/erties )re #o si+ere+ by l).) +ebtor )s )()i st t4ir+ /erso s4)ll be t4e sub2e#t o.t4e +ebtor 4)s bee #o si+ere+1 ) + . T4us1 t4e e umer)tio /ro3i+e+ i Art. <o.4i#4 )re ot )mo ( t4ose me tio e+ m)y )lso be ) mo+e oe5ti (uis4i ( t4e obli()tio 1 t4e )rri3)l o.lost or +estroye+ or su#4 ob2e#t 4)s bee o. <o.t4e +ebtor )s )()i st t4ir+ /erso s. Eay future properties of the debtor be le$ied upon by the creditor in an execution sale? As ) rule1 yes.4e t4e 3ery ob2e#t is )lre)+y o.t4e s)me 6i + ) + 0u)lity1 )t t4e e5/e se o.) resolutory /erio+1 ) + mutuum +i#e #io or mutu)l +esist) #e. Art& #>& When what is to be deli$ered is a determinate thing. <o. +10/*Art.oul+ 3iol)te 4is ri(4t )()i st i 3olu t)ry ser3itu+e. T4e l)st o e is ) obli()tio to +o.e3er1 ot )ll t4e ri(4ts o.oul+ +e/e + o t4e )ture ot4e obli()tio . 1=J1.e3er1 t4is )#tio is o lo (er )3)il)ble .o )re obli()tio s to (i3e1 t4e -irst is ) +etermi )te t4i (1 .f not.it4 res/e#t to obli()tio s to +o is t4)t t4e #re+itor m)y 4)3e t4)t t)s6 /er-orme+ by ) ot4er /erso )t t4e e5/e se o.B t4ere-ore1 u +er t4e l).t4e +ebtor.t4e #re+itor )s )()i st t4ir+ /erso .4is obli()tio 1 t4e obli()tio is )lso e5ti (uis4e+.4i#4 t4e +ebtor .t4e +ebtor.its 6i +1 t4e #re+itor #) #om/el 4im t4rou(4 ) )#tio -or s/e#i-i# /er-orm) #e.t4e /i) o1 t4e #ourt #) ot #om/el A to /er-orm t4e obli()tio be#)use it . Ge er)lly1 /ro/erty ri(4ts m)y be t4e sub2e#t osubro()tio 1 e5#e/t (o3er me t /e sio s be#)use it (oes i to t4e e5iste #e o. e+ by ) ot4er /erso .t4ere is ) 2u+i#i)l +e#l)r)tio o.4e t4e ob2e#t . A##io Subro()tori) .oul+ be subro()te+ i t4e ri(4ts o. .4i#4 is to e5er#ise )ll t4e ri(4ts ) + bri ( )ll t4e )#tio s o. what are those? ).#ourt to be e5em/t -rom e5e#utio . may compel the debtor to ma=e the deli$ery& 4f the thing is in eterminate or generic. T4is is #)lle+ ) )#tio -or substitute /er-orm) #e. what are the remedies of B? T4e reme+ies 4ere . T4e t4ir+ /erso is t4e +ebtor o. b.4i#4 /ro3i+es -or 1% mo+es o.)s )lre)+y +estroye+. U +er t4e l)tter s#e )rio1 t4e #re+itors #) o lo (er re)#4 t4e +ebtors -uture /ro/erties. the creditor. :nder Art& '' there are two remedies which are both subsidiary.) +ebtor )s ) -)#t +oes ot e5ti (uis4 ) +ebtors obli()tio . Wit4 res/e#t to t4e re-ri(er)tor1 ) +etermi )te t4i ( .

1(( +?C-. surve#ors. +1/11aArt.( an 13. the same shall be eeme e'tinguishe . +10//aArt.. teachers. an the 5ortgage . of a value not e'cee ing one hun re thousan pesos7 !-' =rovisions for in ivi ual or famil# use sufficient for four months7 !(' 2he professional libraries an e"uipment of 1u ges. +10/. +1124Art. engineers. it shall also be un one at his e'pense. after having pursue the propert# in possession of the ebtor to satisf# their claims. or three carabaos. 2he po!er to rescin obligations is implie in reciprocal ones. 2he famil# home is eeme constitute on a house an lot from the time it is occupie as a famil# resi ence. present an future.accessories. an lan necessaril# use in connection there!ith7 !b' Or inar# tools an implements personall# use him in his tra e. +243a- !. or three co!s.. buil ers.. an no other. the liabilit# of the first infractor shall be e"uitabl# tempere b# the courts.. 1.?or ebts incurre prior to the constitution of the famil# home7 !=' ?or ebts secure b# mortgages on the premises before or after such constitution7 an ?or ebts ue to laborers. an each shall bear his o!n amages. mechanics. negligence. 1(3 +?C-. sub1ect to the e'emptions provi e b# la!. +1112Art. 11. +nArt. 2he in1ure part# ma# choose bet!een the fulfillment an the rescission of the obligation. 2he ebtor is liable !ith all his propert#. unless there be 1ust cause authori$ing the fi'ing of a perio . ma# e'ercise all the rights an bring all the actions of the latter for the same purpose. force sale or attachment e'cept as hereinafter provi e an to the e'tent of the value allo!e b# la!. are liable for amages. save those !hich are inherent in his person7 the# ma# also impugn the acts !hich the ebtor ma# have one to efrau them. an those !ho in an# manner contravene the tenor thereof. +n- pension or gratuit# from the government is sub1ect to attachment or e'ecution. or other beasts of bur en such as the 1u gment obligor ma# select necessaril# use b# him in his or inar# occupation7 !+' :is necessar# clothing an articles for or inar# personal use. @'cept as other!ise e'pressl# provi e b# la!. an the obligor oes !hat has been forbi en him. or livelihoo 7 b# !#' 2hree horses. materialmen an others !ho have ren ere service or furnishe material for the construction of the buil ing. %ub1ect to the la!s. 4n case both parties have committe a breach of the obligation. force sale or attachment e'cept: !1' ?or nonpa#ment of ta'es7+2. Neither the right to receive legal support nor an# mone# or propert# obtaine as such support or an# . 2he court shall ecree the rescission claime . 11. +1101Art. 11*.aArt. pharmacists.0. e'clu ing 1e!elr#7 !e' :ousehol furniture an utensils necessar# for house)eeping. it ma# be ecree that !hat has been poorl# one be un one. ?rom the time of its constitution an so long as an# of its beneficiaries actuall# resi es therein. for the fulfillment of his obligations. in case one of the obligors shoul not compl# !ith !hat is incumbent upon him. 302.' 6ule 3/ %ec 13. a n o t h e r professionals.Art. 11. or ela#. an use for that purpose b# the 1u gment obligor an his famil#.. +223aArt. !ith the pa#ment of amages in either case. 2he famil# home shall be e'empt from e'ecution. if there has been no stipulation to the contrar#. 4f a person oblige to o something fails to o it. 2he laborer3s !ages shall not be sub1ect to e'ecution or attachment. or the homestea in !hich he resi es. +10/. 11/2. not e'cee ing three hun re thousan pesos in value7 !4' One fishing boat an accessories not e'cee ing the total value of one hun re thousan pesos o!ne b# Art..a!. 2hose !ho in the performance of their obligations are guilt# of frau . clerg#men.0. shall be e'empt from e'ecution: !)' 2he 1u gment obligor3s famil# home as provi e b# la!. clothing an me ical atten ance.. all rights ac"uire in virtue of an obligation are transmissible.. Art. in accor ance !ith Articles 13. &hen the obligation consists in not oing. the same shall be e'ecute at his cost. e'cept for ebts incurre for foo . 2he cre itors. 11*. 11/1. the follo!ing propert#. 2his same rule shall be observe if he oes it in contravention of the tenor of the obligation. entists. ?urthermore. Civil =roce ure 9 =ropert# e'empt from e'ecution. even though the# ma# not have been mentione . shelter. even after he has chosen fulfillment. the famil# home continues to be such an is e'empt from e'ecution. ph#sicians. emplo#ment. +1111Art. :e ma# also see) rescission. la!#ers. if the latter shoul become impossible. 4f it cannot be etermine !hich of the parties first violate the contract. 223*. 2his is un erstoo to be !ithout pre1u ice to the rights of thir persons !ho have ac"uire the thing. such as the 1u gment obligor ma# select. architects.

<o.B# the confusion or merger of the rights of cre itor an ebtor7 +(.ill e5ti (uis4 t4e obli()tio . T4is is #o si+ere+ )s ot4er #)uses.ill ot e5ti (uis4 t4e obli()tio )risi ( -rom #o tr)#ts1 be#)use it .e5ti (uis4me t.oul+ ri(4t-ully -)ll u +er o3)tio . By t4e 1 4e .oul+ ot li6e.ill be +em) +i ( -or ) ot4er -or t4e /er-orm) #e o.t4e t4i ( +ue .B# compensation7 +*. U +er t4e l).4e t4e l). Asi+e -rom t4ose me tio e+ i Art.oul+ o ly +e#re)se t4e li)bility o. t4e /ri #i/)l #) termi )te t4e )ut4ority o.oul+ -)ll u +er o3)tio . O e ot4er .t4e /)rty m)y )lso e5ti (uis4e+ ) obli()tio )s 3ie. :or e5)m/le1 ) #o tr)#t o)(e #y.) -ortuitous e3e t is ot ) mo+e oe5ti (uis4me t.oul+ 4)3e su#4 e--e#t1 or t4e loss o. I.4i#4 is )lle(e+ly m)y be #o si+ere+ to be ) mo+e o./er-orm) #e1 i. Obligations are e'tinguishe : !1' B# pa#ment or performance: !$' B# the loss of the thing ue: +3.oul+ +etermi e i.it4+r). !ages.re u #i)tio is -or ) #o si+er)tio 1 t4e t4is . Tole ti o )//ly o ly to #o tr)#ts1 be#)use )s ) e5)m/le -or obli()tio s )risi ( -rom l).) /)rty +oes ot e5ti (uis4 t4e obli()tio )risi ( -rom #o tr)#ts be#)use u +er Art. <e #e -rom t4e -ore(oi (1 t4is . or annuities accruing or in an# manner gro!ing out of an# life insurance7 !l' 2he right to receive legal support.mo ey1 t4e s)me . I.B# the con onation or remission of the ebt7 +4.)s #4) (e+ to ) l)/to/.t4e 4)//e i ( o. privileges.#o tr)#ts1 e5#e/t o t4ose #o tr)#ts .4e t4e obli()tio to +eli3er ) 4orse . Ire u #i)tio is ) (r)tuitous )#t1 #le)rly it .e5ti (uis4me t se/)r)te ) + +isti #t t4) t4)t me tio e+ i Art.1 it is t4e l).e+ by some )ut4ors. A + t4e )(e t m)y )lso termi )te t4e obli()tio by . t4)t obli()tio is ot e5ti (uis4e+ by t4e +e)t4 o.oul+ be #om/romise.4i#4 is ) mo+e o.4i#4 is t4e im/ossibility o. 1%=11 +e)t4 oo e o.t4e obli()tio . As to #o tr)#ts1 )s ) rule +e)t4 o.) ot4er obli()tio .it .ise1 i. CA1 t4e li)bility .oul+ 3iol)te t4e -u +)me t)l /ri #i/le i #o tr)#ts 6 o. T4e Su/reme Court 4)s #o siste tly rule+ t4)t ) 4)//e i ( o.oul+ -)ll u +er #o +o )tio .t4e +ebtor.o e ot4e /)rties .4i#4 is t4e )#t o.t4e /)rties . or mone# or propert# obtaine as such support.t4e -ortuitous e3e t .Ro 0uillo 3s.e3er i #o tr)#ts1 )s ) rule it #) ot.)i3e 4is ri(4t1 but 4e .4ere t4e ob2e#t o.t4e )(e t ) + t4us e5ti (uis4 t4e #o tr)#t1 ) + t4ereby t4e obli()tio s )risi ( -rom it by re3o#)tio .oul+ )//e)r to be ) ot4er mo+e o. As i t4e #)se o. T4e u il)ter)l )#t o.)s +e#re)se+ -rom 1?% to 11%.e5ti (uis4me t o.obli()tio .e5ti (uis4me t. (r) t ) /)rty to ) #o tr)#t t4e ri(4t to termi )te t4e obli()tio )risi ( t4ere-rom. )s t4e mutu)lity o. 1%=1. But @ro-essor Tole ti o is o. . But no article or species of propert# mentione in his section shall be e'empt from e'ecution issue upon a 1u gment recovere for its price or upon a 1u gment of foreclosure of a mortgage thereon. T4e #i3il #o+e 4o ors re u #i)tio )s ) (r)tuitous or ) o erous )#t.4e t4ere is ) #4) (e i t4e ob2e#t o. It is ) ot4er mo+e oe5ti (uis4me t be#)use t4e e--e#t o.t4e obli()tio #) be #4) (e+> 7es1 su#4 )s . Is t4is ot ) se/)r)te ) + +isti #t mo+e> No be#)use it . or an# pension or gratuit# from the Aovernment7 !m' =roperties speciall# e'empt b# la!.oul+ ot be #o si+ere+ ) se/)r)te ) + +isti #t mo+e. <e #e1 t4ere is o3)tio .s a happening of a fortuitous e$ent a mode of extinguishment? No.t4e /ri #i/)l.e3er1 #) t4ere be ) #om/romise . .ise e5ti (uis4 t4e obli()tio e3e i- Eodes of 3xtinguishment of 5bligations Art. O t4e ot4er 4) +1 it .t4ere is ) obli()tio to +eli3er ) (e eri# t4i ( or /)y ) sum o. 1=11 obli()tio s )risi ( -rom #o tr)#ts1 ri(4ts ) + obli()tio )re tr) smissible to t4e 4eirs or to t4e est)te1 ) + t4ere-ore t4ey )re ot e5ti (uis4e+. But CU belie3e+ t4)t t4e st)teme t o.@ro-. 1231.it is #o si+ere+ )s ot4er #)uses it is im/lie+ t4)t it is ot #o3ere+ by t4ose me tio i Art. Or+i )rily it .t4e /)rties. T4us1 ) #om/romise )(reeme t is o ly ) /)rti)l e5ti (uis4me t. R)t4er it is t4e e--e#t o. Eay the unilateral act of one of the parties extinguish the obligation? 7es it m)y1 4o. .)l. or earnings of the 1u gment obligor of his personal services !ithin the four months prece ing the lev# as are necessar# for the support of his famil#7 !2' .oul+ -)ll u +er #o +o )tio or remissio .)s s)i+ t4)t re u #i)tio by ) #re+itor is ) mo+e o.oul+ . Li6e. T4is .) #om/romise )(reeme t.4i#4 . 1$=1.a fisherman an b# the la!ful use of !hich he earns his livelihoo 7 !i' %o much of the salaries. Woul+ it be #o si+ere+ ) se/)r)te ) + +isti #t obli()tio ot4er t4) t4ose me tio e+> No1 be#)use it .4i#4 )re b)se+ o trust ) + #o -i+e #e su#4 )s .o e o.t4e +e)t4 o.B# novation.o e o.t4e 3ie.ettere gravestones7 !6' 5onies benefits.

<e #e1 ) /erso su--eri ( -rom #i3il i ter+i#tio #) ot 3)li+ly -ul-ill or /)y 4is +ebts be#)use 4e 4)s o -ree +is/os)l o4is /ro/erty.4i#4 /ert)i to t4e /erso to .t4e l).4i#4 is t4e mo+e o.) t to )##e/t /er-orm) #e -rom ) /erso . T4ere )re rules . I.4om t4e #re+itor +oes ot .t4e 3ie.t4e obli()tio .4)t 4e is su//ose+ to +o 4e is )#tu)lly -ul-illi ( 4is obli()tio . t4)t it #) ot be #o si+ere+ )s ) mo+e o.oul+ be (oo+ to #l)ssi-y t4e rules o. Also t4e /erso to .4i#4 /ert)i to t4e /erso . . I ) obli()tio s to (i3e1 t4e #re+itor m)y ot li6e. T4is is o./)yme t.4i#4 m)y o ly be m)+e by t4e /erso .t4e obli()tio i. Tole ti o )s ullity o.4is /ro/erty.t4e -ortuitous e3e t +oes ot )--e#t t4e t4i ( .4i#4 is t4e obli()tio to (i3e su//ort. <o. @)yme t or @er-orm) #e @)yme t is sy o ymous to /er-orm) #e t4)t e3e ) obli()tio to +o m)y be e5ti (uis4e+ by /)yme t.4o )+3o#)te+ t4is 3ie.. T4is m o + e o . T4is im/ossibility o/er-orm) #e is #o si+ere+ by @ro-.) t to m)6e t4e /er-orm) #e1 /rob)bly by t)6i ( i to #o si+er)tio t4e /erso )l #ir#umst) #es o. I.) t to )##e/t.ill e5ti (uis4e+ t4e obli()tio .4et4er /)yme t is ) 3)li+ /)yme t or ot1 it .t4e s)me is lost t4rou(4 ) -ortuitous e3e t.t4ere is o e to #ourt m)y )//oi t ) (u)r+i) )+ litem.4o . Who are these persons who ha$e an interest in the fulfillment of the obligation other than the debtor? .ise ot e5ti (uis4 t4e obli()tio be#)use t4ere )re /)yme ts .e5ti (uis4me t be#)use . @)yme t m)y be m)+e by t4e mi ors (u)r+i) 1 or i.)s bei ( +r)-te+ /)yme t is o ly limite+ o ly to mo et)ry obli()tio s but t4ose . As to t4e /erso . Note 4o. +i+ ot su##ee+.4i#4 m)y be e5ti (uis4e+ .t4e t4i ( is lost be#)use t4e (e us +oes ot /eris4. It is t4e im/ossibility o/er-orm) #e . Se#o +ly1 ) /erso .e3er i.obli()tio 1 e3e obli()tio s ot to +o1 )s lo ( 4e is ot +oi ( .4o /)ys.t4e -ortuitous e3e #)use+ t4e im/ossibility o. <e is #)lle+ t4e /)yee.oul+ ot e#ess)rily resu l t t o t 4 e e5ti (uis4me t o. @)yme t +oes ot e#ess)rily /ert)i to ) mo et)ry obli()tio .t4e /er-orm) #e1 t4e it .4et4er ) obli()tio is e5ti (uis4e+ by /)yme t1 or to +etermi e .4om t4e /)yme t is m)+e ee+ ot be t4e #re+itor.it4 t4e su//ort.4o m)y 0uestio 4is #)/)#ity to m)6e /)yme t> T4e ot4er #re+itors.t4e +ebtor.4e t4e #o+e .e5ti (uis4i ( ) obli()tio is )//li#)ble to ) y 6i + o. i terest i t4e Why can’t a creditor be compelled to accept payment or performance? I ) obli()tio to +o1 ) #re+itor m)y ot .4om /)yme t is m)+e.#o tr)#ts.) te+ to /)y or e5ti (uis4 4is obli()tio 1 . t4)t . I.t4ere is ) obli()tio to +eli3er ) +etermi )te t4i ( .4o 4)s t4e #)/)#ity to )lie )te 4is /ro/erties. <o.f A is indebted to B and X offered to pay B& Eay this extinguish the obligation? T4e obli()tio m)y be e5ti (uis4e+ i.e3er1 t4e #ourt m)y or+er t4e (uilty s/ouse to #o ti ue . All t4ese rules . i. =. T4ere )re rules . to e5ti (uis4 t4e obli()tio @)yme t by ) mi or m)y e5ti (uis4 t4e obli()tio es/e#i)lly i obli()tio )risi ( -rom 0u)si +eli#t.1 1.4e ) #o tr)#t is ull ) + 3oi+ t4ere is ot4i ( to e5ti (uis4.B )##e/ts.e3er /)yme t by ) mi or m)y li6e./)yme t i to . I.4o /)ys ee+ ot be t4e +ebtor1 su#4 )s t4ir+ /)rty /)yme t.4i#4 /ert)i to t4e /rest)tio to be /er-orme+1 or to t4e t4i ( to be +eli3ere+. $.e5ti (uis4me t ) + ot t4e -ortuitous e3e t.it4 .t4e m)rri)(e is +e#l)re+ ull ) + 3oi+ or i.t4ere is le()l se/)r)tio 1 ) s/ouse m)y o lo (er 4)3e t4e obli()tio to (i3e su//ort.#ourse )s ) rule.4i#4 /ert)i to t4e +)te1 time1 /l)#e ) + m) er o. T4ere )re rules .ill 4)3e to be #om/lie+ i or+er t4)t /)yme t m)y e5ti (uis4 t4e obli()tio . T4ere )re rules .ise be #om/elle+ to )##e/t /)yme t -rom ) /erso ot4er t4) t4e ori(i )l +ebtor1 /rob)bly be#)use t4e mo ey #omi ( -rom ) ot4er /erso m)y /rob)bly #ome -rom +ru(s or t4e mo ey is #ou ter-eit. A #re+itor )s ) rule m)y ot )##e/t /er-orm) #e -rom ) t4ir+ /erso 1 e5#e/tC ). To +etermi e . by sti/ul)tio b.4o /)ys1 t4e re0uireme ts o.4o /)ys must )lso 4)3e t4e -ree +is/os)l o. Alt4ou(4 t4ere is ) 3ie.t4e t4ir+ /erso 4)s ) -ul-illme t o. But CU is o. T4ou(4 4e m)y ot be #om/elle+1 4e m)y . I.t4e mi or . To t4e /erso . .t4ere is ) #4) (e i #i3il st)tus t4ere m)y be ) obli()tio .4i#4 is to be +eli3ere+.

t4e /ri #i/)l +ebtors +em) +e+ o.4e t4is obli()tio .t4e /ri #i/)l +ebtors o ly to t4e e5te t t4)t 4e m)y be be e-ite+.t4e /ri #i/)l +ebtor m)y 4)3e /re3iously /)i+ ) /)rt o. T4e /ro3isio s)ys t4)t i.it4out #o se t' o. T4e i te tio o. T4is is be#)use i t4is /)yme t .t4e l).ill1 8 #) ot be subro()te+.)s o ly ) )##essory #o tr)#t1 t4ere-ore t4e mort()(e -ollo.le+(e1 u +er t4e l). . E3e 4e #) ot be #om/elle+ to /)y t4e e tire1 4e 4)s ) i terest i t4e /er-orm) #e o.@erso s .ill o. .t4e /ri #i/)l +ebtor.er .)s #o stitute+ to se#ure t4e +ebtor9s obli()tio ) + ot 89s obli()tio .)s be e-ite+.it4out issue. 8 #) -ore#lose t4e mort()(e e3e .le+(e or #o se t1 t4e /erso . yet he paid the creditor $oluntarily the payment of the entire obligation. X will be subrogated in the rights of B& X paid B& Can X now foreclose the mortgage if A fails to reimburse? No 8 #) ot -ore#lose t4e mort()(e e3e .4o /)i+ #l)ims reimburseme t t4e -ollo.le+(e or )()i st t4e . It +oes ot m)tter .t4e obli()tio .t4e #o2oi t +ebtors 4)s ) i terest i t4e -ul-illme t o. <o.t4e +ebtor1 ) + 8 #) ot #l)im reimburseme t -rom t4e -ormer.o e o.oul+ +e/e + o .it4out t4e 6 o.)s . T4e /)rties to t4e mort()(e is t4e mort()(or ) + t4e #re+itor. is t4)t .4e t4is /)yme t is .it4 t4e i st) #e .ill ot /re2u+i#e 8 ri(4t to (o o3er t4e /ri #i/)l +ebtors or (u)r) tors u +er t4e /ri #i/le o.i ( obser3)tio s )re see C As to t4e +em) + -or reimburseme t1 t4e ) s.t4e +ebtor or )()i st t4e . X demanded for reimbursement under the same scenario 7has no interest8. <ere1 o e o. T4ey 4)3e ) i terest be#)use i.4i#4 )//)re tly result . can the creditor be compelled to accept payment of the entire obligation? Can the person who paid.4ere t4ere is o 6 o.it4 or .4e t4e obli()tio .s t4e /ri #i/)l1 t4ere-ore t4e mort()(e m)y li6e. What if a person who has no interest in the fulfillment of the obligation.t4e +ebtors #) be #om/elle+ to /er-orm t4e -ul-illme t o.)s e5ti (uis4e+ .)s )lre)+y e5ti (uis4e+.t4e obli()tio .t4e e tire obli()tio 1 i. T4e -)#t t4)t t4e #re+itor )##e/te+ /)yme t1 t4e obli()tio is e5ti (uis4e+.subro()tio .ill be subro()te+ to t4e ri(4ts o.t4e e tire obli()tio .4e t4ere is o 6 o.1 t4e o e .4o /)i+ m)y or m)y ot 3)li+ly +em) + reimburseme t.le+(e or it is )()i st t4e .ill1 t4ere .it4out t4e 6 o.t4e mort()(e1 t4)t . and he cannot demand reimbursement. can X go after the guarantors? T4e #re+itor #) ot be #om/elle+ be#)use t4e o e /)yi ( +oes ot 4)3e ) i terest1 but 4e m)y )##e/t.4i#4 4e . As to #o-2oi t +ebtors #) )lso #om/el t4e #re+itor to )##e/t /)yme t o.4et4er t4e +ebtor #o se te+ /)yme t or ot. !WRONG' Assumi ( t4)t t4is /)yme t .reimburseme t1 )s 4e #) o ly reimburse t4e )mou t -rom .f there are > debtors in an obligation to pay !!.ise be e5ti (uis4e+.)s m)+e . It is )lso )r(ue+ t4)t 8 #) ot -ore#lose t4e mort()(e be#)use 8 is ot ) /)rty to t4e mort()(e.it4out t4e 6 o.t4e /ri #i/)l +ebtors1 t4e i su#4 i st) #e .or6 to t4e /re2u+i#e o. Assumi ( 4e )##e/ts1 t4e o e . $alidly d e m a n d reimbursement from one of the principal debtors? .ill!t4ere-ore .subro()tio 1 4e #e 4e #) ot (o to t4e mort()(ors ) + (u)r) tors.t4e +ebtor1l 8 #) ot #om/el B -or 4im to be reimburse+1 but t4ey #) #ome to ) )(reeme t.!!! can any one of the debtors compel acceptance from the creditors the payment of the entire of the obligation? T4ere s4oul+ be o +eb)te i soli+)ry obli()tio s be#)use i ) soli+)ry obli()tio s1 ) y o e o.t4e +ebt1 4e #e to be )s6e+ -or reimburseme t o.it4 t4e #o se t o.e3er1 .t4e obli()tio is e5ti (uis4e+1 .4e t4ere is o 6 o.t4e obli()ito is ot #om/lie+ t4eir /ro/erty m)y be lost. E3e .ere+ . Wit4 res/e#t . I.it4 t4e #re+itor1 8 .t4e +ebtor.4i#4 is t4e /ri #i/)l #o tr)#t1 ) + t4e mort()(e . I.4o )re subsi+i)rily li)ble li6e1 (u)r) tors1 mort()(ors1 or /le+(ors.t4ere is 6 o.le+(e or )()i st t4e .4o /)i+ m)y o ly +em) + reimburseme t -rom o e o.le+(e1 t4e o e ..t4e l).hird if the one who paid cannot $alidly ma=e the demand from the debtors.ill be o ri(4t o./)yme t .t4e )mou t /)i+ by su#4 t4ir+ /erso m)y . But su#4 is ot t4e i te tio o. Alt4ou(4 t4e ) s.4et4er t4e /)yme t .oul+ be yes )s im/lie+ by t4e /ro3isio .)s .4e t4ere is ) )(reeme t. It . Su#4 is -or t4e /rote#tio o.it4 I terest i t4e /)yme t )re t4ose . may X foreclose the mortgage? No. .le+(e o.it4 t4e e5ti (uis4me t o. W4e 8 /)i+ t4e #re+itor1 t4e obli()tio is e5ti (uis4e+.4o /)i+ m)y 3)li+ly +em) + .f X and B 7creditor8 entered into an agreement without the =nowledge of A 7principal debtor8 that if X pays B as to his obligation.

after two wee=s he demanded what he paid to B claiming that A did not gi$e consent to this payment& 4ince it is a form of an indirect donation. NoteC T4e /erso i .t4ose /erso s me tio e+ i Art.)s m)+e to ) /erso . which is a re0uirement in donations where the donee must accept& Dere.4ose -)3or t4e obli()tio is #o stitute+. be#)use 4e 4)s t4e )ut4ority o. Su##esors i i terests1 or )ssi( s.o whom payment should be made in order for the obligation is to be extinguished? @)yme t s4oul+ me m)+e toC ).4ose -)3or t4e obli()tio is #o stitute+ ee+ ot e#ess)rily be t4e /erso . 1$.su#4 /)yme t> It . !s4eri--1 (u)r+i) 1 li0ui+)tors1 re#ei3ers1 #o ser3)tors1 et#. b. A did not gi$e consent.t4e l).ill be t4e e--e#t o..f X paid B.4)t . =a#ment shall be ma e to the person in !hose favor the obligation has been constitute . .t4e /)yme t . . hence the payment is $oid& .A ) + +i+ ot i te + to be reimburse+1 )s -)r )s t4e #re+itor is #o #er e+1 4e .4o 4)s t4e )ut4ority to re#ei3e NoteC To t4e /erso .A ) + B e tere+ i to ) #o tr)#t ) + A /)i+ B1 +oes it e#ess)rily e5ti (uis4e+ t4e obli()tio > No. As ) rule1 /)yme t to ) . or an# .it4out t4e 6 o.4o is t4e /erso i . 1240. . To t4e /erso /)yme t. there is no acceptance. +11*2a-./o#6ete+ t4e mo ey> 7es. To t4e /erso #o stitute+./)yme t .ill ot e5ti (uis4 t4e obli()tio . '.4o e tere+ i to ) #o tr)#t1 it m)y be ) ot4er /erso .4o 4)s t4e )ut4ority -rom t4e #re+itor to re#ei3e /)yme t is ot )##ur)te be#)use ) /erso m)y 4)3e t4e )ut4ority to re#ei3e /)yme t . i . Art.le+(e o. or his successor in interest. E3e i.)ybe it is ot B .oul+ o 4)3e t4e ri(4t to re#l)im .4)t .)s .4e t 4 e s 4 e r i -. I.s the contention correct? No.%1 .4o is ot o e o.ro ( /)rty is ot ) /ro/er /)yme t ) + t4ere-ore +oes ot e5ti (uis4 ) obli()tio .4ose -)3or t4e obli()tio is person authori$e to receive it. W4e t4e +ebtor /)i+ t4e s4eri--1 +oes it e5ti (uis4 t4e obli()tio .4e t4e s)me is )ut4oriAe+ or (r) te+ by l). #. without the intention of being reimbursed by A. :or e5)m/le i.)s /)i+. to re#ei3e /)yme t.

W4)t is t4e reme+y o- ) /erso to .4om 4e .ro (-ully /)i+> To re#o3er -rom t4e /erso .it4 .4om 4e /)ys u +er solutio i +ebiti be#)use t4)t /erso .ill ot 4)3e t4e ri(4t to +em) + -or /)yme t. By .)y o- e5#e/tio 1 /)yme t to ) .ro ( /)rty m)y )lso e5ti (uis4 t4e obli()tio 1 .4e C W4e t4e /)yme t re+ou +e+ to t4e be e-it o- t4e #re+itor1 but o ly u/ to t4e e5te t t4)t t4e #re+itor .)s be e-ite+. @)yme t to t4e #4il+ o- t4e #re+itor1 .oul+ t4)t e5ti (uis4 t4e obli()tio > As ) rule o1 be#)use t4e #4il+ is ot t4e #re+itor. It is ) /)yme t to ) .ro ( /)rty. W4o .ill 4)3e t4e bur+e i /ro3i ( t4)t t4e /)yme t re+ou +e+ to t4e be e-it o- t4e #re+itor> Ob3iously1 t4e /)yer or +ebtor .ill 4)3e t4is bur+e . As ) e5#e/tio .4ere t4e /)yer or +ebtor .oul+ ot 4)3e t4e bur+e o- /ro3i ( t4)t t4e /)yme t re+ou +e+ to t4e be e-it o- t4e #re+itor .4e C 1. W4e t4ere is r)ti-i#)tio o- t4e #re+itor1 )s su#4 it is +eeme+ re+ou +e+ to t4e #re+itors be e-it. W4y .oul+ 4e r)ti-y i- it +i+ ot re+ou + to 4is be e-itB $. t4rou(4 t4e )#ts o- t4e #re+itor1 t4e +ebtor .)s le)+ to belie3e t4)t t4e /erso or /)yee 4)s )ut4ority to re#ei3e /)yme t1 t4is is u +er t4e /ri #i/le o- t4e esto//elB =. .4e t4e /)yee )#0uire+ t4e ri(4ts o- t4e #re+itor )-ter t4e /)yme t. NoteC T4e /)yee s4oul+ )#0uire t4e ri(4t o- t4e #re+itor )-ter t4e /)yme t ) + ot be-ore t4e /)yme t1 t4is is be#)use .4e t4e /)yee )#0uire+ t4e ri(4ts o- t4e #re+itor be-ore t4e /)yme t1 t4is .oul+ ot be ) /)yme t to ) .ro ( /)rty1 )s t4is .oul+ be ) /)yme t to ) su##essor i i terest or ) )ssi( ee1 ) + su#4 .oul+ be ) 3)li+ /)yme t. A executed a promissory note and deli$ered the same to B the creditor& But few wee=s thereafter, the promissory note was already in the possession of C& ,n the hands of C the promissory note matured and C demanded payment from A& A paid C& Would payment to C by A extinguished the obligation to B? 7es. Not 2ust be#)use C .)s i /ossessio o- t4e /romissory ote +oes ot m)6e 4im ) /ro/er /)rty to re#ei3e /)yme t. T4ere )re t.o re0uireme ts .4i#4 )re re0uire+ i or+er -or it to be #o si+ere+ ) 3)li+ /)yme tC 1. T4is /erso !C' must be i /ossessio o- t4e #re+it. Note t4)t /ossessio o- ) /romissory ote +oes ot e#ess)rily me) t4)t 4e .)s i /ossessio o- t4e #re+it. T4e l)tter is merely ) e3i+e #e o- #re+it. To be i /ossessio o- ) #re+it is t4)t su#4 /erso must )//e)r to 4)3e /ossessio o- t4e #re+it. :or e5)m/le1 t4e /romissory ote /ro3i+es t4)t F/)yme t to Hose ReyesG It #oul+ ot be #o si+ere+ )s ) /erso

)//e)ri ( to 4)3e /ossessio o- t4e #re+it1 t4e s)me ot bei ( ) e(oti)ble i strume t. It .oul+ be +i--ere t i- t4e /romissory ote is ) e(oti)ble ) + ) be)rer /romissory ote ) + i /ossessio oC. T4ere-ore u +er t4is #ir#umst) #e it #) be i -erre+ t4)t C e(ot)ti)te+ t4e ote by mere +eli3ery. <e t4ere-ore is i /ossessio o- t4e #re+it. But ote t4)t /)yme t to 4im +oes ot e#ess)rily e5ti (uis4 t4e obli()tio be#)use t4e ot4er re0uireme t is1 $C /)yme t must be i (oo+ -)it4. me) i ( t4)t .4e A /)i+ C 4e must 4)3e o 6 o.le+(e o- t4e +e-e#t o- title C. T4ese t.o re0uireme t must #o #ur i or+er t4)t t4e /)yme t to ) .ro ( /)rty to e5ti (uis4 t4e obli()tio o- A to B. Si #e u +er t4e -ore(oi ( #ir#umst) #e1 t4e obli()tio o- A is e5ti (uis4e+1 B t4ere-ore 4)s t4e reme+y )()i st C. A is the debtor of B, thereafter B assigned his credit to C& ,t was after the assignment that A paid B& .hat is a payment to a wrong party because C is not supposed to be the new creditor through assignment& Eay the payment of A to B, extinguish his obligation to C? 7es1 .4e A /)i+ B .it4out 6 o.le+(e ot4e )ssi( me t. Eay a creditor be compelled to partial performance? As ) rule1 o1 u less t4ere is ) sti/ul)tio to t4e #o tr)ry or i- t4e obli()tio is /)rtly li0ui+)te+ or /)rtly u li0ui+)te+ to t4e e5te t o- t4e /ortio .4i#4 is li0ui+)te+1 t4e #re+itor m)y #om/el t4e +ebtor to /er-orm1 li6e.ise t4e +ebtor m)y #om/el t4e #re+itor to )##e/t. ,f the obligation is to deli$er a determinate thing, the creditor may not be compelled to accept the deli$ery of another thing e$en if such other thing is more $aluable than the thing supposed to be deli$ered& ,n Art& "%* what is the effect of substantial performance?
Art. 1234. 4f the obligation has been substantiall# performe in goo faith, the obligor ma# recover as though there ha been a strict an complete fulfillment, less amages suffere b# the obligee. +n-

:or e5)m/le .4e t4e +ebtor is i +ebte+ to ) sum o- mo ey /)y)ble i 1% ye)rs i mo t4ly i st)llme ts. W4e t4e +ebtor 4)s )lre)+y /)i+ -or J ye)rs1 t4e #re+itor #) o lo (er res#i + t4e #o tr)#t be#)use t4ere is /)yme t .4i#4 is #o si+ere+ /)rti)l /er-orm) #e. I- t4ere is subst) ti)l /er-orm) #e i rel)tio to Art. 11J1 t4ere is o more subst) ti)l bre)#4. What would constitute substantial performance? J out o- 1% i st)llme ts is subst) ti)l /er-orm) #e. &D i st)llme ts out o- 1$% is )lso subst) ti)l /er-orm) #e. EDM o- t4e obli()tio s t ) t i ) l /er-orm) #e. is ot sub

?;M is ot ) subst) ti)l /er-orm) #e. What are the rights of the parties when there is an obligation to pay or deli$er !! sac=s of rice& F> sac=s has been deli$ered, the other > can no longer be deli$ered despite good faith& Dow much can the seller reco$er from the buyer? U +er t4e l). t4e seller m)y re#o3er o ly t4e 3)lue o- t4e JD s)#6s less +)m)(e t4)t m)y be su--ere+ by t4e #re+itor. T4e buyer ot 4)3i ( bee )ble to re#ei3e 1%% s)#6s o- ri#e1 4e m)y 4)3e su--ere+ be#)use i- t4e 1%% s)#6s o- ri#e 4)s bee )ll +eli3ere+1 4e m)y 4)3e sol+ it -or ) 4i(4er /riAe. T4is is #)lle+ u re)liAe+ /ro-it .4ere t4e t4e 3)lue o- t4e JD s)#6s o- ri#e s4)ll be lesse e+ be#)use o- t4e u re)liAe+ /ro-its .4i#4 t4e buyer m)y 4)3e re#ei3e+ .ere it ot -or t4e i #om/lete +eli3ery When there is an irregular or incomplete fulfillment, there is an instance under the law that the obligation is fully complied with& Dowe$er the following re0uisites must be complied with, namely9 1. T4ere must be )##e/t) #e by t4e #re+itor $. T4e )##e/t) #e must be .it4 -ull 6 o.le+(e ot4e i #om/lete ess or irre(ul)rity. =. <e must ot 4)3e m)+e ) ob2e#tio .
Art. 123(. &hen the obligee accepts the performance, )no!ing its incompleteness or irregularit#, an !ithout e'pressing an# protest or ob1ection, the obligation is eeme full# complie !ith.

T4e /remise o- subst) ti)l /er-orm) #e is t4)t t4e #re+itor )##e/te+. W4et4er or ot 4e #) be #om/elle+ to )##e/t +oes ot m)tter1 .4)t m)tters is 4e )##e/te+ t4e /)rti)l /er-orm) #e.

I t4e #)se o- AA#o ) 3s. Am) +re .4ere t4e Su/reme Court rule+ t4)t t4e /)yme t e5ti (uis4e+ t4e obli()tio .4ere t4e )#tu)l

)mou t +ue .)s ?1$%% but o ly /)i+ ?1%%% .4e t4e seller issue+ ) re#ei/t ?%%% )s /er #o tr)#t1 it is )s i- t4ere .)s -)it4-ul #om/li) #e. ,n monetary obligations, can there be a $alid obligation in money which is not in 1hilippine currency? 7es. .it4 or .it4out RA D$&1 )s )me +e+ it .ill be ) 3)li+ obli()tio .
6@=8B;4C AC2 NO. ,1,3 . . AN AC2 6@=@A;4NA 6@=8B;4C AC2 N85B@6@> ?4B@ :8N>6@> 2&@N2C9N4N@ A% A5@N>@>, @N242;@> DAN AC2 2O A%%86@ 2:@ 8N4?O65 BA;8@ O? =:4;4==4N@ CO4N AN> C866@NCC.D %ection 1. All monetar# obligations shall be settle in the =hilippine currenc# !hich is legal ten er in the =hilippines. :o!ever, the parties ma# agree that the obligation or transaction shall be settle in an# other currenc# at the time of pa#ment. %ec. 2. 6epublic Act Numbere ?ive :un re 2!ent#9 Nine +6.A. No. (2/-, as amen e entitle DAn Act to Assume the 8niform Balue of =hilippine Coin an Currenc#,D is hereb# repeale . %ec. 3. 2his Act shall ta)e effect fifteen +1(- a#s after its publication in the Official Aa$ette or in t!o +2- national ne!spapers of general circulation. 2he Bang)o %entral ng =ilipinas an the >epartment of ?inance shall con uct an intensive information campaign on the effect of this Act. ,f the currency agreed upon is not in 1hilippine pesos, can the creditor demand fulfillment in the currency agreed upon and not in 1hilippine currency? U +er R.A. D$& it is ot )llo.e+. E3e i- t4e /)rties )(ree to ) #urre #y e5/ressly sti/ul)te+1 u +er RA D$&1 su#4 is ) 3oi+ sti/ul)tio . T4e obli()tio is ot 3oi+1 it is t4e sti/ul)tio o- /)yme t i t4e #urre #y o--ere+ .4i#4 is 3oi+. :o!ever in 6A ,1,3 amen ing 6A (2/ a cre itor can eman fulfillment other than =hilippine currenc# if such !as the stipulation is vali .

When creditor accepted the chec= and the same became stale, can the creditor demand for the issuance of another chec=? No& W4e t4e #re+itor .)s i /ossessio o- ) #4e#61 t4ere is ) +is/ut)ble /resum/tio t4)t t4e +ebt 4)s ot yet bee /)i+. It m)y be rebutte+ .4e t4e +ebtor 4)+ )lre)+y /)i+1 ) + t4e #re+itor .)s still i /ossessio o- t4e #4e#6. What are those which are considered legal tenders? ). otes !#)s4' b. #oi s NoteC E3e .4e t4e mo ey is #o si+ere+ le()l te +ers t4e s)me 4)s bee .it4+r). -rom #ir#ul)tio or 4)s bee +emo itiAe+. An action was filed under 0uasi delict and thereafter a <udgment was rendered in fa$or of the plaintiff on a contract entered into ! years ago, today A filed a motion to ha$e his <udgment ad<usted claiming that there is an extraordinary inflation& Eay the <udge award A’s motion? U +er Art. 1$D% I #)se ) e5tr)or+i )ry i -l)tio or +e-l)tio o- t4e #urre #y sti/ul)te+ s4oul+ su/er3e e1 t4e 3)lue o- t4e #urre #y )t t4e time ot4e est)blis4me t o- t4e obli()tio s4)ll be t4e b)sis o- /)yme t1 u less t4ere is ) )(reeme t to t4e #o tr)ry. U +er t4e -)#ts1 -or Art 1$D% to )//ly1 t4e s)me must be b)se+ o ) #o tr)#t ) + ot 0u)si +eli#t be#)use t4e l). )s .or+e+ F#urre #y sti/ul)te+G. <e #e1 Art 1$D% .ill ot )//ly ) + t4ere-ore )+2ustme t #) ot be )llo.e+. I- t4e )#tio .)s -ile+ b)se+ o #o tr)#t1 t4e 2u+(e s4oul+ ot (r) t t4e motio -or )+2ustme t i- t4e s)me is ot ) e5tr)or+i )ry i -l)tio . Be#)use t4e )+2ustme t s4oul+ be (r) te+ i- t4ere is o ly ) e5tr)or+i )ry i -l)tio t4)t o##ur1 ot4er.ise ot (r) te+. NoteC Art. 1$D% me) s t4)t t4ere must be ) )+2ustme t )t t4e time o- t4e #o stitutio o- t4e obli()tio i- t4ere is ) e5tr)or+i )ry i -l)tio or +e-l)tio b)se+ o ) #o tr)#t. ,f the due date for the performance of the obligation is a sunday and demand was made on that day howe$er the debtor only performed it the next day, may he be considered in delay?

Can the creditor be compelled to accept payment by chec=s? No. .4)te3er 6i + o- #4e#6 is ot )llo.e+1 t4ey )re ot le()l te +ers. When creditor accepted the chec= and the same became stale, is the obligation extinguished? No. It is o ly t4)t it #) ot be be e #)s4e+.

oul+ )##e/t less t4) t4) . Co si( )tio +oes o re0uire t4e #re+itors #o se t i. T4is /ositio ./)yme t ) + #o si( )tio . ers4i/.n these special forms of payment. ")tio i /)yme t A//li#)tio o.7es. It is ) /)yme t by ) /erso #o tr)#t.ill be t4e o e to )#0uire o.4e t4ere is ) im/ossibility o. What are the special forms of payment? 1.3)li+ #o si( )tio 1 o.t4e obli()tio 1 or . is the obligation extinguished to the extent of the $alue unless otherwise stipulated? 5r in dation in payment. ers4i/ is ot tr) s-erre+ to t4e #re+itor. .4e t4e obli(ee )##e/ts t4e /er-orm) #e1 . As to t4e #re+itor1 )s ) rule t4e #re+itor9s #o se t is ot re0uire+ be#)use t4e +ebtor u +er t4e l).#essio . . I #)se o. <o.4ere3er t4e t4i ( mi(4t be )t t4e mome t t4e obli()tio . E3e i./er-orm) #e o.t4e 3)lue o. ers4i/ be#)use t4is t4i ( is to be sol+ to t4ir+ /erso s .it is ) +etermi )te t4i (1 t4e /)yme t s4)ll be m)+e )t t4e /l)#er . 4)s t4e ri(4t to +esi( )te to . to t4e e--e#t t4)t it m)y tot)lly e5ti (uis4 t4e obli()tio u +er 1$=D1 )s .4et4er t4e t4i ( is +etermi )te or (e eri#. . It is merely ) /)rti)l /er-orm) #e.s payment by a third party a special form of payment? No. do they re0uire the consent of the parties in order that the obligation be extinguished? As to +ebtors1 t4eir #o se t is re0uire+ be#)use 4e is t4e o e o--eri ( to /)y.f there is dation in payment. ot ) /)rty to ) .t4e +ebtor /romise+ to /er-orm t4e obli()tio o su#4 +)y ) + 4e +i+ ot /er-orm1 4e is #o si+ere+ i +el)y.4i#4 t4e /)yme t is to be )//lie+. T4e #re+itor #) ot +o ) yt4i ( i. there is transfer of ownership? Not e#ess)rily. It is ) /ro/er /ositio be#)use o #re+itor . T4is is be#)use .t4e #re+itor re-uses to )##e/t1 t4e t4e #ourt s4)ll +etermi e .)s #o stitute+.s the creditor already in delay? Not e#ess)rily1 be#)use t4ere m)y be ) sti/ul)tio t4)t +eli3ery be m)+e i ) ot4er /l)#e. u +er 1$=D . . I ) y ot4er #)se !su#4 )s .su +)y or 4oli+)y1 i.+eli3ery. the obligation of the debtor is totally extinguished? Not e#ess)rily.4e t4e t4i ( )lie )te+ is less t4) t4e 3)lue t4e i +ebte+ ess1 t4e obli()tio is ot e5ti (uis4e+ tot)lly. where should such thing be deli$ered? It +e/e +s o .n dation in payment if the thing is alienated by the debtor in satisfaction of his debt and the $alue of such thing is less than the indebtedness. $. unless there is a stipulation to the contrary? It o ly e5ti (uis4es to t4e e5te t o.n these special forms of payment.4o . NoteC "i--ere t 3ie. . T4is is be#)use .e3er1 t4ere is ) 3ie./)yme t. When can consignation to the court pass ownership to the creditor? I #)se o. =. when the debtor deli$ers a thing to the creditor. As ) e5#e/tio 1 e3e i.oul+ )//e)r to be 2ust.4e t4e t4i ( is i +etermi )te' t4e t4e +ebtors +omi#ile s4)ll be t4e /l)#e o.t4e +)te )(ree+ u/o is ) su +)y t4e +ebtor m)y ot be #o si+ere+ i +el)y .4e t4e +ebtor ()3e t4e #re+itor ) #4e#6 ) + t4e #4e#69s +ue +)te is ) 4oli+)y or ) o b) 6i ( +)y1 i t4e l)tter #)se it is )llo./)yme t /)yme t by #essio or )ssi( me t te +er o.t4e t4i (.s the consent of the creditor re0uired in order that obligation be extinguished by way of consignation? No. T4e #re+itor +oes ot )#0uire o. I #)se o.e+ -or )s lo ( )s it is t4e e5t b) 6i ( +)y. it totally extinguishes the obligation.i 3)li+ #o si( )tio 1 ) + t4e #re+itor +i+ ot )##e/t1 o.t4e #o si( )tio is ) 3)li+ #o si( )tio . ers4i/ is tr) s-erre+ to t4e #re+itor )t t4e time o. I.4et4er t4e #o si( )tio is 3)li+ or ot.f there is no stipulation as to the place where the thing is to be deli$ered. and the creditor refused to accept& .t4e #ourt.n an obligation to gi$e or deli$er a determinate thing and the thing was deli$ered at the place of business of the creditor.t4e t4i ( u less )(ree+ u/o by t4e /)rties. <e #e1 t4e obli()tio is to be e5ti (uis4e+..4e t4e t4i ( is +eli3ere+ to t4e #re+itor i or+er -or 4im to sell. It m)y eit4er by )##e/t) #e or by +e#l)r)tio o.4)t is t4e 3)lue o. .

D' be#)use I.)t#4 o. U +er t4e )bo3e s#e )rio1 i. I.t4e /ri #i/)l s4)ll ot be +eeme+ to 4)3e bee m)+e u til t4e i terests 4)3e bee #o3ere+. T4is 4)//e s . . I..t4e #re+itor. o s)les.is+om i t4e l)tter 3ie. o s)les .ill o lo (er ) 0uestio to .it4out t4e #o se t o. may the debtor apply the payment to the debt which does not incur interests? I. A .4e /ro/erty is )lie )te+ to t4e #re+itor i s)tis-)#tio o. T4ere m)y be $ or more #re+itors si #e t4e l).)//li#)tio .t4e +ebtor is t4e /erso to . 1$.s it correct to say that when a property is alienated to the creditor in satisfaction of a debt in money.it4.oul+ be more bur+e some to t4e D%%1%%% be#)use t4e l)tter is i terest be)ri (. o t4e m)tter . to which the payment is to be applied? It +e/e +s i. .) +ebt i mo ey1 s4)ll be (o3er e+ i t4e l).t4em /ro/ortio )tely u +er Art.t4e +em) +)ble +ebt /ro+u#es i terest1 /)yme t o. there should only be one creditor? Not e#ess)rily.t4e s)me )ture or bur+e 1 me) i ( o e o. A has an obligation of %!.!!! to satisfy the >!!.t4em is more o erous1 )//ly t4e /)yme t to t4e most o erous obli()tio .4e /ro/erty is )lie )te+ to t4e #re+itor i s)tis-)#tio o. since there is a change in the ob<ect? It m)y be s)i+ t4)t si #e t4ere is ) #4) (e i t4e ob2e#t1 t4e l). What if the debtor failed to designate to which the payment is to be applied. 1$. o o3)tio is /ro/er.!!! debt? .4om t4e /erio+ is -i5e+1 ot4er. .t4e +ebts )re ot o.o which the debt the payment is to be applied? It is ) +ebtor )s ) rule1 4)s t4e #4oi#e to . !Art.4i#4 is su--i#ie t to #o3er )ll t4e +ebts1 t4ere .) /erso is i +ebte+ to ) ot4er /erso 1 ) + i t4is /re-e5isti ( +ebt t4e +ebtor /)i+ t4e #re+itor ) .f the amount of the debt is bigger does it mean that it is the most onerous? . (or the rules of application of payment to be in$o=ed.!!!.oul+ )//ly t4e /)yme t to t4e D%%1%%% be#)use it .t4e +ebtor.4i#4 +ebt is /)yme t is to be )//lie+. o s)les be#)use it m)y be s)i+ t4)t t4e +ebtor /)i+ i #)s4 ) + t4e #re+itor use+ t4is #)s4 to buy t4e .) +ebt i mo ey1 ot4er.i ( its i #om/lete ess or irre(ul)rity1 ) + .t4e +ebts is ot yet +ue ) + t4e -irst o e is +ue t4e +ebtor m)y )//ly t4e /)yme t to t4e -irst +ebt i. <o. It .s that allowed? Why would A apply the payment to the >!!. <o.t4e +ebt.4i#4 is Art. and one of the debt produces interests. T4ere is .ill be (o3er e+ i t4e l).e3er1 t4ere is ) l).)y it .$ o. and >!!!!! to X& A paid the %!.it4out e5/ressi ( ) y /rotest or ob2e#tio 1 t4e obli()tio is +eeme+ -ully #om/lie+ .ill be (o3er e+ by t4e l).)ll t4e +ebts is )lre)+y +ue1 t4e +ebtor #) ot #om/el t4e #re+itor to )//ly t4e /)yme t to t4e -irst +ebt by #4oi#e1 u +er t4e /ri #i/le t4)t t4e #re+itor #) ot be #om/elle+ to )##e/t /)rti)l /er-orm) #e or by sti/ul)tio o. .t4e /)rties t4e -irst +ebt is t4e l)st to be /)i+ or $ +.ise1 e3e i. /ation in payment shall be go$erned in the law on sales? Not e#ess)rily.)t#41 i ) .!!!? It is )llo.)s -i5e+ i t4e #re+itors -)3or1 t4e t4e +ebtor m)y ot )//ly t4e /)yme t i t4e -irst +ebt.f the debtor and the creditor failed to designate to which the payment is to be applied.ill 4)3e to be (o3er e+ by t4e l).t4e s)me )ture ) + bur+e 1 /)yme t s4)ll be )//lie+ to )ll o.D ..t4e +ebts )re o. :or )//li#)tio o.o e is +ue but t4e /erio+ .4i#4 t4e /)yme t is to be )//lie+.4i#4 /ro3i+es t4)t .n application of payments therefore./)yme ts to be )//lie+1 t4e +ebtor /)i+ /)rti)lly.e+ to )//ly t4e /)yme t to D%%1%%%%. >!.e3er1 i. .!!!. W4e t4e +ebt /ro+u#es i terests ot All the debts are due and demandable. .6 o.t4ere is ) )(reeme t t4)t t4e +ebtor #) m)6e t4e #4oi#e o.o e o. it can be go$erned by the law on no$ation. What are the limitations to the right of the debtor for which the payment is to be applied? 1.4e t4e +ebtor /)i+ less t4) t4e )mou t o. o. +ue ) + +em) +)bility =.ise it . @)rti)l /)yme t $. 1$D.t4e +ebtor /)i+ i ) sum . I. +oes ot s/e#i-y t4)t t4e +ebtor s4oul+ o ly 4)3e 1 #re+itor. is there a scenario where there will be total extinguishment of obligation? No.o3)tio be#)use t4ere is ) #4) (e i t4e ob2e#t. to which the payment is to be applied? T4e +ebt +esi( )te+ by t4e #re+itor ) + su#4 +esi( )tio is to be )##e/te+ by t4e +ebtor.

ee t4e +ebtor ) + 4is #re+itors s4)ll be (o3er e+ by s/e#i)l l).it4out 2ust #)use to )##e/t it1 t4e +ebtor s4)ll be rele)se+ -rom res/o sibility by t4e #o si( )tio o. 1$DE'. T4e sm)ller )mou t m)y i #ur bi((er i terests. W4e 1 .f in one of the debt. .e3er1 i ) #)se .it4out 2ust #)use1 4e re-uses to (i3e ) re#ei/tB +./)yme t m)y be 2u+i#i)l .4i#41 o t4e e--e#t ot4e #essio 1 )re m)+e bet./)yme t. . @)yme t by Cessio . the other party refused to accept without <ust cause.1 . which is more onerous? T4e more o erous is t4e +ebt i . By its )ture it is e5tr)2u+i#i)l.4i#4 )reC ).t4e t4i ( )ssi( e+ or #e+e+.ender of payment. It is ot re0uire+ t4)t .4e t4e ot4er /)rty re-use+ to )##e/t by .o or more /erso s #l)im t4e s)me ri(4t to #olle#tB e. Te +er o. and he is willing to abandon his properties to his creditor.4i#4 t4e +ebtor is /ri #i/)lly bou + be#)use t4e (u)r) tor #) +em) + -rom reimburseme t -rom t4e #re+itor.t4e t4i or sum +ue !Art.t4e re+em/tio /erio+.Not e#ess)rily.4is +ebts./)yme t is e5tr)2u+i#i)l.ill be ) /)rti)l /)yme t ) + s4)ll rele)se t4e +ebtor o ly to t4e e5te t o. T4e )(reeme ts .t4e t4i ( to be #e+e+ to t4e #re+itor is less t4) t4e +ebt1 su#4 . T4e re)so is t4)t #o si( )tio is o ly re0uire+ . as a rule.)y o#o si( )tio 1 e5#e/t .s tender of payment a mode of extinguishment? Te +er o.1 te +er o. N)3)rro1 t4e +e-e se is ot te )ble. .)ys e5tr)2u+i#i)l ) + #) e3er be 2u+i#i)l.4 it a $alid defense? I t4e #)se o.#o si( )tio be-ore t4e l)/se o. !11?D)' So it me) s t4)t . W4e t4e #re+itor is )bse t or u 6 o.4e t4e 3)lue o.4ere t4e SC 4el+ t4)t te +er o. <o. No obli()tio is e5ti (uis4e+ by mere te +er o.)s o obli()tio to be e5ti (uis4e+ but o ly ) ri(4t to be e5er#ise+. 1$DD. T4is #essio 1 u less t4ere is sti/ul)tio to t4e #o tr)ry1 s4)ll o ly rele)se t4e +ebtor -rom res/o sibility -or t4e et /ro#ee+s o./)yme tB b.t4e +ebt is more o erous./)yme t is ot ) mo+e oe5ti (uis4me t. It is ot re0uire+ to i 3ol3e t4e #ourt to m)6e ) te +er o. what ad$ice would you gi$e to your client? U +er Art. T4ere is o 4)r+ ) + -)st rule to +etermi e . U +er t4e l).s insol$ency a re0uirement that the debtor is insol$ent in order for him to assign or cede his property? Not /)yme t by #essio is by )(reeme t o.)y o.#o si( )tio 1 t4e re+em/tio er s4oul+ +eli3er t4e mo ey to t4e #ourt by .)s m)+e +uri ( t4e /e +e #y o. A is a principal debtor.4e t4ere is ) obli()tio to be e5ti (uis4e+.Imm)#ul)t) 3s. what if the creditors refused to adhere to this offer. W4e t. . he is merely a guarantor. and in another debt. A has a right to redeem within the period within which A has a right to redeem.4e t4e )mou ts i 3ol3e+ )re +i--ere t.t4e /)rties ) + t4ere-ore )s lo ( )s t4e +ebtor #e+es ) + t4e #re+itor )##e/ts -or t4e l)tter to sell1 i sol3e #y is ot re0uire+. .4e t4e #re+itor to .t4e )#tio ./)yme t ) + #o si( )tio . 1 or +oes ot )//e)r )t t4e /l)#e o./)yme t be m)+e to e5ti (uis4 ) obli()tio by . after the lapse of the period to redeem.4i#4 o. <ere t4ere . A EM i terest i -)#t m)y be more o erous t4) ) 1$M i terest .t4e et /ro#ee+s o.4e t4e te +er o/)yme t ./)yme t is ot re0uire+ )s /ro3i+e+ by l). re0uired in order to extinguish an obligation by way of consignation? As ) rule1 it is ot re0uire+ t4)t te +er o.f the client is the debtor./)yme t.s. W4e 4e is i #)/)#it)te+ to re#ei3e t4e /)yme t )t t4e time )t t4e time it is +ueB #. But ote by its )ture te +er o. when he refused to accept the money? . he offered the money to the other party for the redemption of a property& Dowe$er.4om te +er o.ender of payment may be extra<udicial? No1 it is )l. 1$DE'./)yme t 4)s bee m)+e re-uses .)y o. T4e +ebtor m)y #e+e or )ssi( 4is /ro/erty to 4is #re+itors i /)yme t o.t4e t4i ( )ssi( e+. W4e t4e title o.t4e obli()tio 4)s bee lost !Art. the redemptioner filed an action to sell the property and deli$er the same to him& 5ne of the defenses raised by the other party was the tender was not in good faith because the redemptioner did not deli$er the money to the court by way of consignation.

) +ebt i mo ey1 it . T4e )ut4ority o.it4out +em) + o li)bility to /)y i terest.n an obligation to deli$er a horse.f the obligation of the debtor is secured by a mortgage because of failure of the debtor to pay the debt.t4e #o si( )tio 4)+ bee (i3e to t4e /erso i tereste+ i t4e /er-orm) #e o. 11??1 Ci3il Co+e'B !.it4+r).)s /l)#e+ )t t4e +is/os)l o.' t4)t t4e )mou t +ue . . .4om te +er /)yme t . thereafter he paid the debt& .it4 su#4 4e is #o si+ere+ i +el)y1 . T4e +ebtor m)y be 4el+ li)ble to /)y i terest !)ssumi ( +ebtor is i +el)y' -rom 1-1-%1 to 1-$$-%1 i.4et4er t4e .O e o. /o these notice both come from the debtor? No. tender of payment was made ? ?!" and consignation was made ? ?!>. 1$.4i#4 e5ti (uis4es t4e obli()tio ) + ot ) re#ei/t.#ourse1 /)yme t is t4e o e .it4 #ert)i re0uireme ts /res#ribe+ by l). T4e +ebtor must s4o. T4e -irst oti#e !/rior #o si( )tio ' must #ome -rom t4e +ebtor but t4e se#o + o e !)-ter #o si( )tio ' m)y #ome -rom t4e #re+itor.4e o e 4)s ) #erti-i#)te o. o s)les /ursu) t to Art./)yme t is m)+e or t4e /ri #i/le .t4e #re+itor is re0uire+ .ri(4t1 si #e t4e #o se t ot4e #re+itor is re0uire+1 t4ere #) o lo (er be ) -ore#losure be#)use t4e #re+itor ()3e 4isN4er #o se t ) + t4e obli()tio is )lre)+y e5ti (uis4e+. .4i#4 is +ue.t4e obli()tio !Art. A law which pro$ides that a payment is only considered as such upon issuance of the receipt.s the two notice re0uirement under consignation mandatory? Would these two notices both come from the creditor? 7es it is re0uire+ )s 4el+ i t4e #)se So#o 3s.)s +em) + m)+e1 4e is li)ble -or i terest be#)use . . A sum of money was deli$ered to the court by way of consignation.i terest s4oul+ o ly be #ou te+ u/ to t4e time te +er o. :)ilure i ) y o.t4ere . is it a ground to ma=e a deli$ery to the court by way of consignation? 7es be#)use ) re#ei/t is ) e3i+e #e o. But 2usti#e ) + e0uity ser3es t4)t /)yme t o.4e it is +o e be-ore )##e/t) #e ) + t4ere or o +e#l)r)tio by t4e #ourt t4)t t4ere is ) 3)li+ #o si( )tio !Art 1$E%'.4ere t4e #o se t o.t4e re0uisite i or+er to 4)3e ) 3)li+ #o si( )tio is t4)t t4ere must be ) +ebt . is it ad$antageous? 7es.it4+r). I or+er t4)t #o si( )tio m)y be e--e#ti3e1 t4e +ebtor must -irst #om/ly . therefore the creditor has the right to deli$er the horse to the court by way of consignation? Not e#ess)rily be#)use o e /erso m)y 4)3e ) better ri(4t t4) t4e ot4ers su#4 )s .f the creditor refuses to issue a receipt./)yme t1 o issu) #e o. howe$er he was able to withdraw the sum of money.)s ) m)tter ori(4t1 t4e #re+itor m)y -ore#lose t4e mort()(e.)s oti-ie+ t4ereo. on ?""? ! the court rendered <udgment in relation to this consignation. It is )+3) t)(eous be#)use it .ri(4t .)l . 11?J1 Ci3il Co+e'.title o3er t4e 4orse .ill be (o3er e+ o t4e l).4ere bot4 t4e +ebtor ) + #re+itor is i +el)y1 su#4 . would the debtor be held liable for interest from the tender of payment on ? ?! ? I. But o. It .D1 u less t4ere is ) sti/ul)tio to t4e #o tr)ry1 -urt4er Loss o.) re#ei/t t4e #re+itor m)y )()i +em) + -or t4e /)yme t. Assumi ( t4e #ourt +e#l)re+ t4e #o si( )tio to be 3)li+ !t4ere is )lso +el)y'1 t4e i terest s4)ll be #ou te+ o ly u/to t4e time t4e +ebtor +eli3ere+ t4e /)yme t i #ourt..he due date was ? ?! . !1' t4)t t4ere .oul+ i 3ol3e less liti()tio s1 se#o +ly t4e +ebtor #) #om/el t4e #re+itor to issue ) re#ei/t.ilit) te.4e t4e +ebtor re-uses to )##e/t1 )s su#4 t4e +ebtor #) o lo (er be 4el+ li)ble -or i terest. 11?E1 Ci3il Co+e'B !=' t4)t /re3ious oti#e o.oul+ be ) m)tter o.4e /ro/erty is )lie )te+ to t4e #re+itor i s)tis-)#tio o.4e t4e .!Art. % persons are claiming to ha$e a right o$er this horse.)l is ) m)tter o.t4e #ourt !Art.t4e #ourt #o si+ere+ to #o si( )tio to be 3oi+.t4e obli()tio 4)+ bee m)+e be#)use t4e #re+itor to . 11?J1 Ci3il Co+e'B ) + !D' t4)t )-ter t4e #o si( )tio 4)+ bee m)+e t4e /erso i tereste+ . may the creditor foreclose the mortgage e$en if the debtor withdraw the payment by way of consignation? It +e/e +s . .t4e T4i ( "ue or im/ossibility o/er-orm) #e .)s m)+e re-use+ to )##e/t it1 or be#)use 4e .t4ese re0uireme ts is e ou(4 (rou + to re +er ) #o si( )tio i e--e#ti3e.t4e #re+itor is irrele3) t .)s ) +ebt +ueB !$' t4)t t4e #o si( )tio o.)s )bse t or i #)/)#it)te+1 or be#)use se3er)l /erso s #l)ime+ to be e title+ to re#ei3e t4e )mou t +ue !Art.

t4eir obli()tio s )re (uilty o. and if someone would forcibly ta=e his cellphone he would re0uest that the cellphone alone should be ta=en& .he court did ad<ust the terms and conditions of the agreement& A motion to dismiss was filed on the ad<ustment& .1 4e #e t4ere is ot4i ( to be e5ti (uis4e+. An action was filed for the court to ad<ust the agreement of the parties as to their share in the profits in relation to the sale of a house and lot& /efendant was the owner of the land and the plaintiff was the owner of the materials used in the construction.to t4e #o tr)ry. <o. .t4e loss o.4ole or i /)rt.4e t4e ser3i#e 4)s be#ome so +i--i#ult )s to be m) i-estly beyo + t4e #o tem/l)tio o.t4e /)rties.t4e obli()tio it is #o si+ere+ )s 3oi+ bei ( #o tr)ry to l).4i#4 t4e l). . which ma=es him liable. T4e o ly /o.f the performance of the obligations becomes so difficult. the obligation is extinguished? Not e#ess)rily.)s lost +ue to t4e -)ult o.t4e )(reeme t. be#)me e--e#ti3e +uri ( t4e /e +e #y ot4e obli()tio 1 by l). when would this obligation be extinguished under the Code? I. Asi+e -rom sti/ul)tio 1 i.t4ere is ) sti/ul)tio to t4e #o tr)ry.)s lost .4ole or i /)rt .its 6i +1 )s .) u -oresee e3e t still t4e #ourt 4)s ot /o.n an obligation to deli$er a determinate thing.)s i t4e /ossessio o.4i#4 /ro3i+es t4)t .4e it be#)me so +i--i#ult1 so +i--i#ult t4)t it is beyo + t4e #o tem/l)tio o.t4e t4i ( is +ue to t4e -)ult o. T4e #ourt m)y 4o.t4e loss o. it is #o si+ere+ le()lly im/ossible to /er-orm. <o. I. and it had a casing.f there was a lost of the thing due to the fault of the debtor.s4)ll be li)ble -or +)m)(es !Art 11?%'.t4e s)me .er (r) te+ to t4e #ourt u +er t4is /ro3isio /ro3i+e+ i Art.t4e /)rties1 it is ot be#)use o. T4)t is t4e o ly /o. who has the burden of pro$ing that the loss was due to the fault of the debtor? T4e #re+itor )bsolutely 4)s t4e bur+e o.e3er1 rele)se t4e +ebtor i . When the lost of the thing was due to a fortuitous e$ent.#) o lo (er be +eli3ere+ e5ti (uis4es 4is obli()tio to +eli3er t4e t4i (1 but .t4e +ebtor.)s ot )t -)ult t4e obli()tio is e5ti (uis4e+.)s +ue to 4is -)ult1 u less t4ere is /roo.ise be li)ble i.t4e t4i ( m)y be e5ti (uis4e+ e3e i.t4e +ebtor1 it is ot e5ti (uis4e+1 but i.e3er1 t4ere .4o i ) y m) er #o tr)3e e t4e te or t4ereo. <e m)y be li)ble .s the motion granted? ad<ustment proper? T4e.ill li6e.it /ert)i s to ) (e eri# t4i (1 i . the proceeds to be di$ided between them #!L*!& . I.e3er1 t4is /resum/tio . . what is the effect? T4e t4i ( itsel.t4e l).n an obligation to deli$er a generic thing.t4e +ebtor.4ole or i /)rt.4e t4e t4i ( lost . T4e #ourt 4)s o /o. 1$E? .4i#4 +oes ot i #lu+e ) t4i (.4e . A ot4er s#e )rio is ./ro3i ( t4)t it . .f there is an obligation to deli$er a .)s ot i +el)y1 4e .4e t4e (e eri# t4i ( is t4e l)st o.I t4e -ormer #)ses it .t4e t4i ( is ) (e eri# t4i (1 by mutu)l )(reeme t o. be#)use t4ere )re obli()tio s to +o or ot to +o .)s lost i. Loss o.Can loss of the thing be in$o=ed in all =inds of obligations? No.er (i3e by l).er to #4) (e t4e terms ) + #o +itio s o.t4e #o tr)#t. T4is /resum/tio t)6e /l)#e o ly .4e 4e . NoteC W4e t4e )ture o.4e it (oes out o.t4e re)so -or t4e +i--i#ulty is be#)use o./rior t4e #o stitutio o.t4e +ebtor . .oul+ be /ro/er to #)ll it im/ossibility o/er-orm) #e.oul+ e title t4e #re+itor to +)m)(es.e)rt40u)6e1 -loo+1 storm1 or ot4er )tur)l #)l)mity.)s ot +ue to t4e -)ult o.4e t4ere is o )lle()tio t4)t t4e t4i ( .-r)u+1 e(li(e #e or +el)y ) + t4ose .t4i (. A y /erso .f the obligation was not extinguished and the thing was lost 7a determinate thing8. It m)y be e5ti (uis4e+ . so /ro3i+es. may the debtor shall be held liable due to the loss of the thing? Not e#ess)rily.4o i t4e /er-orm) #e o.t4e /)rties1 t4e obli(or m)y )lso be rele)se+ t4ere-rom1 i . T4e #ourt m)y rele)se t4e +ebtor /)rti)lly or . E3e i.)s i +el)y. A l). A has a cellphone. is loss of the thing extinguish an obligation? Im/ossibility /ert)i s to /4ysi#)l ) + le()l.#ommer#e.er to #4) (e t4e terms ) + #o +itio s o.) obli()tio to (i3e e3e i.4i#4 /ro4ibits t4e /er-orm) #e o.ris6s )s ) +e-e se #) ot )//ly to +etermi )te t4i (s. to t4e #ourt is to rele)se t4e +ebtor i .ill )rise t4)t is .he plaintiff went to court to ad<ust the shares due to difficulty of performance as the prices of the materials increased& . .t4e +ebtor1 ) /resum/tio .ill ot )//ly i #)se o.4olly -rom t4is obli()tio .t4e obli()tio re0uires t4e )ssum/tio o.

t4e #re+itor1 /le+(ee.oul+ ot 4)3e e tere+ i to t4e #o tr)#t .er(er )(reeme t or #o tr)#ts. :or tr) smissio o.#re+it or remissio o.f it was the debtor child who died in the abo$e scenario.4et4er it is e5/ress or im/lie+.ill be o #o -usio be#)use t4e -)t4er .he executor of the father of the decedent demanded payment from A "!!.4e t4e so . T4ere is ) /resum/tio t4)t t4e obli()tio is e5ti (uis4e+ .oul+ t4ere-ore be e5ti (uis4e+.t4ere is o e1 ) +is/ut)ble /resum/tio is (i3e t4)t t4ere is #o +o )tio .ill be #o -usio )s . U +er t4e -)#ts1 t4ere ./le+(e.herefore. When the promissory note was a pri$ate instrument and it was already in the possession of the debtor.t4e -)t4er .ill #o -usio . T4ere is o /resum/tio t4)t t4e obli()tio is e5ti (uis4e+. I.ri(4ts1 )ssumi ( 4e is t4e o ly 4eir.ill )rise. By agreement of the parties the most common agreement which would result in confusion is =nown as? . it pro$ides that +it was in full payment of the obligation-& . T4e #)si ( .er(er o.+o )tio 1 .or+s1 .4i#4 re0uires )##e/t) #e.)s t4e o. <e #e t4e so is still #om/elle+ to /)y.4e t4e /ri3)te +o#ume t .hrough a chec= A paid his father B %!!. the obligation of A to B was extinguished? T4e t4i ( t4)t .t4e /romissory ote is #o t)i e+ i ) /ubli# i strume t t4e /resum/tio .ri(4ts.!!!& Dowe$er the son raised that his obligation was totally extinguished because as shown in the annotation at the bac= of the chec=. Norm)lly1 )s to obli()tio s or +ebts1 o o e . I.4i#4 .ill ot )##e/t. A borrowed !!.) /erso i 4erits t4e #re+it1 t4e t4ere . Co -usio or mer(er o.)s +eli3ere+ to se#ure .s it condoned? It .)s -ou + o lo (er i t4e /ossessio o. I.cellphone with its case.)s lost i rel)tio to t4e e tire obli()tio .o secure fulfillment of his obligation a watch was deli$ered to B& .!!!& . and the cellphone was lost or destroyed due to a fortuitous e$ent.it4out t4e ot4er t4i ( . !!.oul+ be #o si+ere+ be more im/ort) t . . 4on A is indebted to his father B in the amount of >!!.t4e re u #i)tio is ) (r)tuitous )#t it .oul+ re#o( iAe ) o erous re u #i)tio . W4e t4e t4i ( . I.el e #ruste+.ill ot )rise.t4e +ebt Condonation is also =now as? "o )tio o.s renunciation also a good name for condonation? No be#)use re u #i)tio m)y ot be ) (r)tuitous )#t.)s ob3iously ) -orm o. W4)t is /resume+ is t4)t t4e /le+(e is e5ti (uis4e+.8 .oul+ )##e/t.t4e +ebt.4o ./)yme t' (i3e . I.)s lost1 t4e obli()tio . the watch was already in the possession of X& .4o m)+e t4e ) ot)tio 1 it +e/e +s o .4o 4)s ) +ebt to 4is -)t4er1 t4e so m)y i 4erit -rom 4is -)t4er t4e #re+it t4ereby e5ti (uis4i ( t4e obli()tio by mer(er o. the obligation therefore is extinguished? It +e/e +s o t4e i te tio o.4i#4 .4e )##e/ts t4e t4ere . .ill )mou t to #o +o )tio . /ro3i+es u +er Art 1$?$1 .t4e t4i ( .!!!& A executed a promissory note which he deli$ers to B was already in the possession of A& Was the obligation of A was extinguished by condonation? Not e#ess)rily.!!!& B. A borrowed money from B.ri(4ts Confusion is also =nown as? .)s t4e /le+(or1 t4e t4ere is o /resum/tio t4)t su#4 .hereafter. does it raise the presumption that the obligation was extinguished by condonation? W4)t t4e l).ill +e/e + o . T4e #i3il #o+e .t4e +ebtor1 t4ere is ) /resum/tio t4)t t4e #re+itor +eli3ere+ it 3olu t)rily1 t4e it /resu//oses t4)t t4ere is /)yme t . I.rote t4e ) ot)tio .4e t4e #re+itor . I8 .oul+ be ) /resum/tio t4)t t4e obli()tio is e5ti (uis4e+ i.4e t4e /romissory ote is ) /ri3)te i strume t. er. Or+i )rily t4ere .su##essio )l ri(4ts t4e 4eir must )##e/t.!!! from B& .)s 2e. I ot4er . .4e t4e #)si ( .)s i t4e /ossessio o. Co +o )tio or Remissio o.t4e /)rties )s to t4e im/ort) #e o. Can there be confusion by operation of law? 7es.t4e obli()tio is e5/ress t4ere must be ) )##e/t) #e by t4e so be#)use it is ) -orm o.4e t4ere is ) re#ei/t !e3i+e #e o. will there be confusion? Not e#ess)rily. his father died& . I.

Compensation ma# be total or partial. are cre itors an ebtors of each other. that he reserve his right to the compensation. A debt of A to B became due in ))>.. +11/(Art. an also of the same "ualit# if the latter has been state 7 +3. +n- . 4f the assignment is ma e !ithout the )no!le ge of the ebtor. T4ere-ore -rom 1&&D to $%%$ ) + -rom $%%J to $%1% t4e time l)/se+ is o ly & ye)rs1 4e #e . +nArt.. T4ere is o /)rti)l #o -usio .aArt. +11/. Neither can compensation be set up against a cre itor !ho has a claim for support ue b# gratuitous title.o +ebtors.ell . the former ma# set it off b# proving his right to sai amages an the amount thereof. 12.2hat the# be li"ui ate an eman able7 +(. +nArt. +11/*Art.Can there be a partial extinguishment of an obligation by confusion? 7es. Compensation ta)es place b# operation of la!. T4e )#tio m)y still /ros/er.- Art. unless the assignor !as notifie b# the ebtor at the time he gave his consent. today "! ! an action was filed by B against A on the debt. +nArt.*. the# be of the same )in . 12.A )()i 4)s ) obli()tio to B )()i ..(. but there shall be an in emnit# for e'penses of e'change or transportation to the place of pa#ment. a merger agreement was entered into in "!!". the guarantor ma# set up compensation as regar s !hat the cre itor ma# o!e the principal ebtor.3.it4i t4e /res#ri/ti3e /erio+.t4e /res#ri/ti3e /erio+ o. in their o!n right. 12. T4e obli()tio is e5ti (uis4e+ i $%%$ by mer(er. or if the things ue are consumable..2hat the t!o ebts be ue7 +4.1.. as in this case were rescission was made in "!!F. 4n or er that compensation ma# be proper.0. &hen the t!o ebts are of the same amount.1% ye)rs./.t4e /)rties /rior to t4e mer(er1 it is i. it is necessar#: !1' 2hat each one of the obligors be boun principall#.res#issio s4oul+ ot be i #lu+e+ i t4e #om/ut)tio o. 12. +1200aArt. 12.4. +11//aArt. 12.. may the action still prosper? Observation: 4n the e'am !hen C8 uses the !or %24. +11/. Compensation shall not be proper !hen one of the ebts arises from a epositum or from the obligations of a epositar# or of a bailee in commo atum. even though the ebts ma# be pa#able at ifferent places. an that he be at the same time a principal cre itor of the other7 !$' 2hat both ebts consist in a sum of mone#. 2he parties ma# agree upon the compensation of ebts !hich are not #et ue. Can there be partial confusion? No. 12. the latter ma# set up the compensation of ebts previous to the cession. &hen C8 uses 5a# the action prosper. he ma# set up the compensation of all cre its prior to the same an also later ones until he ha )no!le ge of the assignment. Com/e s)tio Art. there is a total compensation. T4e mer(er u/ to t4e time o. 12.2hat over neither of them there be an# retention or controvers#. but not of subse"uent ones. !ithout pre1u ice to the provisions of paragraph 2 of Article 301. 4f one of the parties to a suit over an obligation has a claim for amages against the other. 2he ebtor !ho has consente to the assignment of rights ma e b# a cre itor in favor of a thir person. 12.t4ere )re t. Compensation shall ta)e place !hen t!o persons. <ust li=e any agreement there can be a rescission. "uri ( t4e mer(er /erio+1 B #) ot sue A1 t4eir /erso )lity bei ( o e ) + t4e s)me. Not!ithstan ing the provisions of the prece ing article. the# ma# be compensate against each other before the# are 1u iciall# rescin e or avoi e . T4e e--e#t ores#issio re3i3es t4e st)tus o. commence b# thir persons an communicate in ue time to the ebtor. Neither shall there be compensation if one of the ebts consists in civil liabilit# arising from a penal offense. it oesnEt tal) about prescription but on some other groun s. cannot set up against the assignee the compensation !hich !oul pertain to him against the assignor. 4f the cre itor communicate the cession to him but the ebtor i not consent thereto.2. 12. &hen one or both ebts are rescissible or voi able. +nArt. prosper. it tal)s of prescription. 12. I..

an e'tinguishes both ebts to the concurrent amount.it4 t4e ot4er. and B has an obligation to A& A’s obligation is interest bearing.)s /ro3i+e+ t4)t t4ere #) be o #om/e s)tio . As lo ( )s t4e +ebts o.D%6.A.l). compensation. A o."e/osit1 Commo+)tum1 Gr)tuitous su//ort ) + #i3il li)bility -rom #rime Re0uires #o se t o.) obli()tio . as !ell as he !ho collects the ebt.4et4er t4e +ebt o. Novation.n compensation is re0uired that the parties ha$e capacity to recei$e and capacity to dispose of their properties? Not e#ess)ry.ill still o. T4ere m)y be /)rti)l e5ti (uis4me t o. =.A. Com/e s)tio o/er)tio o.lo) .ill be o tot)l e5ti (uis4me t. 1243. the rules on the application of pa#ments shall appl# to the or er of the compensation. and compensation too= place.by )(reeme t o.4e o e o.4o i t4eir o. !ithout pre1u ice to the provisions of Article 121/. T4e o/e i ( o./. 4f a person shoul have against him several ebts !hich are suscept i b l e o f compensation. thereafter A wanted to withdraw the E. even though the cre itors an ebtors are not a!are of the compensation.B is l)r(er t4) t4e +ebt o.By o/er)tio o. U +er Art. +1143What is compensation? It is ) mo+e o.l). 12/0. shall be liable to the others for the share in the obligation correspon ing to them. thereafter A borrowed money from the same ban= F!!=.ill o ly be to t4e #o #urre t )mou t ) + t4ere . 1$J? it .t4e /)rties $. confusion or remission of the ebt. I.t4e +ebts )rises -rom ) +e/osit. o/er)tes by 7es.t4e ot4er1 t4e #om/e s)tio . A has an obligation to B. 12. compensation ta)es effect b# operation of la!. What if A deli$ered a thing to the ban= as a depositary for safe=eeping.ill be tot)lly e5ti (uis4e+1 be#)use t4e e5ti (uis4me t is -or t4e #o #urre t )mou t1 but A . 2he cre itor !ho ma# have e'ecute an# of these acts.o e )re tot)lly e0u)l . I.t4ose /erso . be#)use t4ere .B is l)r(er t4) A1 t4e A . +11*(Art. can this be a sub<ect of compensation? Can there be partial compensation? . .ill be tot)l e5ti (uis4me t o.es B 1%%1%%%1 but B 4)s se3er)l +ebts to A 161 $61 D6 ) + $%61 J%6 i tot)l1 . But ) b) 6 +e/osit is ot ) #o tr)#t o.4i#4 is /ro4ibite+. A mort()(e is ) i +i3isible #o tr)#t1 u til t4e obli()tio is e5ti (uis4e+ t4e mort()(e . ma e b# an# of the soli ar# cre itors or !ith an# of the soli ar# ebtors./ are present. Le()l . 121(.t4e +ebt o. may B foreclose the mortgage? 7es. =a#ment ma e to the cre itor b# the ebtor after the latter has been 1u iciall# or ere to retain the ebt shall not be vali .t4e /)rties. after compensation can B still collect interest from A? It +e/e +s o . What are the =inds of compensation? 1. ri(4t )re re#i/ro#)lly +ebtors ) + #re+itors o.ill still be ) b)l) #e o. Co 3e tio )lNVolu t)ry .e)#4 ot4er. &hen all the re"uisites mentione in Article 12.o e o.+e/osit . A opened a sa$ings account with Y Ban= in the amount of E.ill rem)i i -or#e. What if the debt of A is secured by a mortgage. Si #e bot4 )re sim/le lo) t4ere #) be #om/e s)tio . +1202aArt. When can total extinguishment ta=e place? W4e t4e +ebts o..o e )re ot e0u)l to t4e +ebts o.) s)3i (s )##ou t is ) #o tr)#t o. the ban= refused to allow A to withdraw the E as A can only withdraw up to the extent of "!!= and in$o = i n g compensation& Can the ban= deposits be a sub<ect of compensation with the debt? No.A -)ile+ to /)y t4e D%6 t4e B #) -ore#lose o t4e mort()(e.Art.e5ti (uis4i ( to t4e #o #urre t )mou t1 t4e obli()tio s o.ill ot be li)ble -or i terest )s t4ere . :)#ult)ti3e . shall e'tinguish the obligation.e B $%6.it4 #om/e s)tio 1 )ll t4e +ebts .t4e +ebt o. +1201Art.

e+ to be set-o--. A is indebted to B !!=./ubli# /oli#y1 to e5#lu+e t4e reme+y i ) )#tio or ) y i +ebte+ ess o. What is A promised to gi$e B a specific =ind of bi=e.t4ey /ert)i to (oo+s1 t4ey must be o.s it correct to say reciprocal creditors? No1 t4is is be#)use t4is . T4e #olle#tio o. (rancia failed to pay his real estate taxes& . =.it is le()l su//ort it #) ot be#)use it is ee+e+ -or ) /erso 9s sur3i3)l..reasurer of 1asay City pursuant to 4ection '% of 1residential /ecree 6o& *#* =nown as the 2eal 1roperty ./erso s1 . Bot4 /)rties must be /ri #i/)lly bou +.it4out t4e /)rties 6 o.s A correct? No. when B tried to collect the debt from A. Go3er me t ) + t)5/)yer )re ot mutu)lly #re+itors ) + +ebtors o. But o ly t4e b)ilor A #) i 3o6e #om/e s)tio ) + ot t4e b)ilee B.f A and B are indebted to each other and the debts are not yet due. T4ey must be #re+itors ) + +ebtors o. It s4oul+ be (r)tuitous su//ort ) + ot #o tr)#tu)l su//ort.4o is li)ble to t4e st)te or mu i#i/)lity -or t)5es.4e t4e +ebts be#ome +ue ) + +em) +)ble1 #om/e s)tio too6 /l)#e by o/er)tio o.t4e st)te or mu i#i/)lity to o e .t4e Ci3il Co+e ) + ) #l)im -or t)5es is ot su#4 ) +ebt1 +em) +1 #o tr)#t or 2u+(me t )s is )llo. )''. T4ey must be mutu)l #re+itors ) + +ebtors $.) t)5 #) ot ).mo ey or i.e+ to be set-o-u +er t4e st)tutes o.e)#4 ot4er u +er Arti#le 1$?J o. A /erso #) ot re-use to /)y ) t)5 o t4e (rou + t4)t t4e (o3er me t o. in the meantime A already had a bi=e& B borrowed the bi=e& Can the borrowed bi=e be a sub<ect of compensation? 7es.oul+ e#ess)rily re0uire t4)t t4e s)me )rose -rom t4e s)me tr) s)#tio .f A is indebted to B of a carabao while B is indebted to A of a car.. Bot4 +ebts must be i sums o. I 1&&& e3e .oul+ /ert)i to re#i/ro#)l obli()tio s1 . his property was sold at public auction by the City .e)#4 ot4er.t4e #)se +o ot s)tis-y t4e re0uireme ts /ro3i+e+ by Arti#le 1$?&1 to .es 4im ) )mou t e0u)l to or (re)ter t4) t4e t)5 bei ( #olle#te+. T4ere-ore i re#i/ro#)l obli()tio s1 t4ere #) o o le()l #om/e s)tio e3e i.e)#4 ot4er i t4eir o. T4e #ir#umst) #es o.itC F!1' t4)t e)#4 o e o.e)#4 ot4er1 )re e5ti (uis4e+ !Art. I(r)tuitous #om/e s)tio #) t)6e /l)#e. ri(4t. .4o i t4eir o. A refused to pay. Can support be a sub<ect of compensation? It +e/e +s1 i. T4is is #ommo+)tum.4i#4 .) l).t4e s)me 6i + ) + 0u)lity. T4ere #) be o o---setti ( o. so B stabbed A and hold B criminally liable& Can there be compensation? 7es1 but o ly t4e )((rie3e+ /)rty A !o--e +e+ /)rty'#) i 3o6e #om/e s)tio ) + ot B !#o 3i#t' .t4ey )re s)i+ to be mutu)l #re+itors ) + +ebtors o.4i#4 )re #o strue+ u i-ormly1 i t4e li(4t o. B owes A a sum of money due ))).7es it #) be ) sub2e#t o. can compensation ta=e place? 7es1 by 3olu t)ry #om/e s)tio . A howe$er said that B cannot in$o=e compensation because B’s credit had already prescribed& .l). A #l)im -or t)5es is ot su#4 ) +ebt1 +em) +1 #o tr)#t or 2u+(me t )s is )llo. both debts $alued at million& A filed an action against B and in$o=e compensation.#om/e s)tio 1 but o ly t4e +e/ositor #) i 3o6e #om/e s)tio .hus. on /ecember >. By le()l #om/e s)tio 1 obli()tio s o. .t4e obli(ors be bou + /ri #i/)lly ) + t4)t 4e be )t t4e s)me time ) .*!!&!!& Eay compensation ta=e place? No. (ranciaMs property was expropriated by the 2epublic of the 1hilippines& 4ince )#% up to )'' inclusi$e.ax Code in order to satisfy a tax delin0uency of 1". 1$?J1 Ci3il Co+e'.set-o--1 . .suit )()i st t4e (o3er me t. A owes B a sum of money due in ))".t)5es )()i st t4e #l)ims t4)t t4e t)5/)yer m)y 4)3e )()i st t4e (o3er me t. ri(4t )re re#i/ro#)lly +ebtors ) + #re+itors o.)it t4e results o.le+(e1 . can compensation ta=e place? 7es1 by 3olu t)ry #om/e s)tio . What are the re0uirements of l e g a l compensation? 1.

ill ot be /rim)rily li)ble to B1 ) + -rom t 4e o #om/e s)tio m)y t)6e /l)#e.)s E54ibits 1 ) + $1 But )s t4e IAC 4)s #o(e tly obser3e+1 t4ese +o#ume ts +o ot /ro3e ) y i +ebte+ ess oISABELA to @NB.CB in the sum of >!E.e+ 4im )lso1 so #om/e s)tio too6 /l)#e1 t4ere-ore 4e #) ot be li)ble -or est)-). (a<ardo borrowed money from . Le()l #om/e s)tio #) ot t)6e /l)#e i #ert)i mo et)ry obli()tio s su#4 )s t)5es1 #ustoms +uties1 t)ri-. can B claim that since @ is a guarantor on A’s debt to be. in accordance with Article "'F of the Ci$il Code& . compensation may ta=e place on A’s debt and B’s debt to @? No be#)use t4e (u)r) tor is ot /ri #i/)lly bou +1 but t4e mome t A +e-)ults ) + 4is /ro/erties )re )lre)+y e54)uste+1 t4e (u)r) tor . )') in the amount of 1 "E. on the other hand B is also a debtor of @. to secure this obligation (a<ardo mortgaged properties amounting !E.)ttor ey9s -ees ) + t4e #ourt rule+ t4)t le()l #om/e s)tio m)y t)6e /l)#e. All t4ey +o /ro3e is t4)t ) letter o. so (a<ardo demanded for the return of the E.)s )lso i +ebte+ to @NB1 t4e o ly e3i+e #e /rese t by @NB to.t.4AB3AA. er o.)r+ o. the ban= released "!E.e3er1 +es/ite +em) + o. if @ demands payment from B.4AB3AA in that amount& 4o that when .4AB3AA& . . it 716B8 became indebted to .his ha$ing ta=en place. and therefore . in its $iew. too6 /l)#e .4AB3AA& . ri(4t.he amounts due from each other were.4e B bou(4t t4e #)r -rom A o #re+it1 t4e buyer B is )lso (oi ( to /)y t4e /ri#e i mo ey1 so t4ere #) be le()l #om/e s)tio .4AB3AA on Earch ).) s4)re o. that amount of 1"E could no longer be le$ied on by any other creditor of .t4e s)le 4e re-use+ to +o so. the . as the AC3254 attempted to do in the case at bar.o +ebts be +ue. in order to satisfy their <udgment against . Will there be legal compensation only if the debt in money arose from contract? No1 t4ere )re #)ses .)s #4)r(e+ -or est)-) ) + . by @NB i t4e #)se t4)t ISABELA .4AB3AAMs breach of the terms of the Credit Agreement of 5ctober %.4AB3AA? No. S .4e t4ere .sto#6 )ut4oriAe+ L to sell t4e s)me1 L o t4e ot4er 4) + )ut4oriAe+ S to sell it1 t4e l)tter . so li=e <ust other in$estments it matured.ISABELA u +er t4e l)tter9s s)3i (s +e/osit i t4e b) 61 .s it re0uired that when both debts are due and demandable means that they are due at the same time? No.)s ) +ebtor o.t4e +ebts be#)me +ue = ye)rs )(o1 ) + t4e +ebt be#)me +ue to+)y1 #om/e s)tio .)s e3er )3)ile+ o-. Where A is indebted to B and this obligation is secured by a guarantor @. A#ero1 t4)t e3e t4ou(4 t4)t @NB .4AB3AA and 16B became at the same time creditors and debtors of each other.)s ).)s )ble to sell t4e s4)re o.L is t4e buyer o.4ere #om/e s)tio by o/er)tio o.l).#re+it mi(4t 4)3e bee o/e e+ -or ISABELA by @NB1 but ot t4)t t4e #re+it . So i. compensation automatically too= place between them.o !$' +o#ume ts m)r6e+ i its be4)l. the 1"E owed by 16B to .et#.)r+s t4is e + #o sists o.4AB3AA itself subse0uently came to be indebted to it on account of . Eay there be obligations both in sums of money in reciprocal obligations? It #) ot 4)//e . Is S9s #o te tio #orre#t> No1 e3e )ssumi ( t4)t L is i +ebte+ to S1 t4e l)tter is re)lly ot i +ebte+ to L i 4is o.A -rom S to remit t4e /ro#ee+s o.t4e s4)res.) t4i ( ) + t4e ot4er is mo et)ry. T4e re)l #re+itor o.t4e ot4erB 555 !=' t4)t t4e t.)s o /roos4o.)s #o 3i#te+1 o )//e)l S #l)ime+ t4)t L o./ri #i/)l #re+itor o. L ) + S s4oul+ be +ebtors ) + #re+itors o. can there be legal compensation? T4ere #) be le()l #om/e s)tio be#)use . A borrowed from B. B bought a car from A on credit.o e o.ill o ly t)6e /l)#e to+)y be#)use it is o ly to+)y t4)t bot4 +ebts be#)me +ue. I re#i/ro#)l obli()tio t4ere )re +i--ere t /rest)tio s1 o e is +eli3ery o.4i#4 is #o si+ere+ ) sim/le lo) 1 t4ere .s t h e r e compensation by operation of law between 16B and . W4)t is re0uire+ is t4)t bot4 +ebts )re +ue. T4e o. applied by operation of law to satisfy and extinguish their respecti$e credits& Eore specifically.4AB3AA was automatically applied in payment and extinguishment of 16BMs own credit against . )''. 16BMs main thesis is that when it opened a sa$ings account for .sto#61 4o.e)#4 ot4er. Eay all monetary obligation be the sub<ect of legal compensation? No. thereafter she also deli$ered E to the ban= for money mar=et in$estment. T4e #ourt rule+ i @NB 3s.

"!!".f B is without =nowledge of the assignment. A assigned his credit to X. X demanded payment from B. Eay legal compensation ta=e p l a c e i n depositum or commodatum? No.4i#4 is /rior to t4e +ebt i #urre+ o "e#. what is the effect? T4ere is #om/e s)tio .)s m)+e be-ore t4e +ebt be#)me +ue1 8 #) re#o3er ot4i (. Obli()tio s m)y be mo+i-ie+ byC !1' C4) (i ( t4eir ob2e#t or /ri #i/)l #o +itio sB !$' Substituti ( t4e /erso o. the %!= was made on 5ct& >. "!!".ill ot t)6e /l)#e si #e i +e/ositum t4e +e/ositor or t4e b)ilor must i 3o6e le()l #om/e s)tio > Eay legal compensation ta=e place in debts which consists of ci$il liability arising from a criminal offense? No )s e5/resse+ i Art. .t4e +ebt is ot yet i+e ti-ie+ or li0ui+)te+1 t4e -ore#losure bei ( sub2e#te+ to liti()tio . . and the !!= debt of B to A was due on 6o$& >.t4e #re+itor.4et4er t4ere is #o se t or o e.4e +i+ t4is )ssi( me t o##ur1 be-ore or )-ter t4e +ebt be#)me +ue. so compensation too= place& (a<ardo 0uestioned the mortgage& Can there be legal compensation? No. $%%$ +ebts m)y be re#o3ere+ by 8 sub2e#t to #ert)i re0uireme ts re0uire+ by l). I su#4 #)ses le()l #om/e s)tio . <ere1 t4e )mou ts o. 1$J?. What are these re0uirements? "etermi e i.t4e +ebtor reser3es t4ere is #om/e s)tio . how much can X demand from B? It +e/e +s o . how much can X reco$er from B? Si #e t4e )ssi( me t .f the >!= was made on Gune >.)s m)+e )-ter t4e +ebt o. I. Assi( me t o . As e5/resse+ i Art. 1D1 $%%$ ) + t4e )ssi( me t .le+(e or .)i3e+ 4is ri(4t to #om/e s)tio .)s m)+e lo ( be-ore t4e +ebt o1%%6 be#)me +ue1 #om/e s)tio too6 /l)#e o ly to t4e e5te t o. "!!"& Dow much can X reco$er from B? Si #e t4e +ebt be#)me +ue o No3. the deed of assignment was made on Gan& >. !1$%=' . and "!=. I.f B did not reser$e his right to compensation.le+(e o. It4ere is o reser3)tio 1 t4e +ebtor .t4e )ssi( me t1 +etermi e . Assuming the !!= debt of B to A is due on 6o$& >.#o se t is (i3e 1 +etermi e .Cre+i t ) s ) ri(4 t t o i 3o6 e #om/e s)tio A was indebted to B for >!=.B 4)+ 6 o. O ly t4e t4e )((rie3e+ /)rty m)y i 3o6e #om/e s)tio . and the assignment is in Guly "!!".t4e +ebtorB !=' Subro()ti ( ) t4ir+ /erso i t4e ri(4ts o.1%%6 be#)me +ue.t4e )ssi( me t. 1$&1.:)2)r+o 0uestio i ( t4e mort()(e is bei ( liti()te+.. T4ere #) be o le()l #om/e s)tio .J%6. 1D1 $%%$ . T4e O#t ) + "e#.t4e re0uireme t o. No3)tio Art. "!!%. "!!" and A assigned his credit X on Earch "!!".it4 6 o. Assuming the due date of the !!= debt is on 6o$& >. T4e obli()tio is ot yet +ue u til No3.ban= claimed that (a<ardo has nothing to reco$er from the ban= because as to her loan which (a<ardo failed to pay.B is . .le()l #om/e s)tio 1 t4e +ebts must be li0ui+)te+ ) + +em) +)ble. <e #e1 o ly D%6 is sub2e#t to #om/e s)tio . what is his remedy? "em) + t4e +ebts o t4e D%1 =% ) + $%6. "!!".4ile t4e #l)im o.le+(e o. %!=. What are the effects of reser$ation at the time of consent? I. 1D1 $%%$. and the "!= was on /ec& >. how much can X 7assignee8 reco$er from B? T4e o ly +ebt sub2e#t to #om/e s)tio is t4e D%6 ) + t4e =%6 ) + $%6 is ot #o3ere+. As o e o. upon foreclosure of the mortgage (a<ardo still has a deficiency of # million. <e #e1 8 #) re#o3er )s mu#4 )s $%6 o ly1 -or t4e l)tter . 1$JJ. B on the other hand is indebted to A for !!=. "!!".4et4er 4e 4)s m)+e ) reser3)tio )s to B9s ri(4t to t4e #om/e s)tio )t t4e time 4is #o se t is (i3e .it4out 6 o.

t4e +ebtor1 or by subro()ti ( ) t4ir+ /erso i t4e ri(4ts o. T4e e--e#t o.t4e e.e)#4 #)se. D I. A /re3ious 3)li+ obli()tio )(reeme t .i #i+e t)l -)#ts1 but . It m)y be /)rti)l or tot)l. +ebtor t)6e 4is /l)#e i t4e e.t4e ol+ #o tr)#t 3)li+ity o.) obli()tio by t4e substitutio or #4) (e o.it4 e)#4 ot4er. No3)tio . !1$%D)' . o e must be #le)rly +is#er ible.) e5isti ( obli()tio is re-erre+ to )s ob2e#ti3e !or re)l' o3)tio .4ose i te tio to +issol3e t4e ol+ obli()tio )s ) #o si+er)tio o. No3)tio m)y )lso be bot4 ob2e#ti3e ) + sub2e#ti3e !mi5e+' )t t4e s)me time./)yme t +oes ot result i o3)tio 1 -or t4e /erio+ )--e#ts o ly t4e /er-orm) #e1 ) + NOT T<E CREATION O: T<E OBLIGATION. o e is #re)te+ i lieu t4ereo-.) obli()tio by t4e substitutio or #4) (e o. What is the test of incompatibility between the old and the new obligation in order to effect no$ation? T4e #4) (e must re-er to t4e ob2e#t1 t4e #)use1 or t4e /ri #i/)l #o +itio s o. I.or+s t4ere must be ) esse ti)l #4) (e. rel)tio . It is esse ti)l t4)t t4e ol+ +ebtor be rele)se+ -rom t4e obli()tio 1 ) + t4e t4ir+ /erso or e.ill /ro+u#e mo+i-i#)tio s o.le+(e or )()i st t4e . +ebtor (i3es 4im t4e ri(4ts me tio e+ i Arti#les 1$=E ) + 1$=?. obli()tio e5/ressly +e#l)re t4)t t4e ol+ obli()tio is t4ereby e5ti (uis4e+1 or t4)t t4e e.t4e ob2e#t or /ri #i/)l #o +itio s o. Ultim)tely1 t4e +etermi )tio o. .t4e e.t4e ori(i )l o e1 m)y be m)+e e3e .ill o. #o tr)#t e5ti (uis4me t o.sub2e#ti3e o3)tio by ) #4) (e i t4e /erso o.t4e e.ere mo+i-i#)tio s ot4e +ebt1 )(ree+ u/o bet. .it4out t4e 6 o. Art. T4e #ourts s4oul+ #o si+er1 i e)#4 /)rti#ul)r #)se1 ot o ly t4e )ture o. o e What are the classifications of no$ation? No3)tio is t4e e5ti (uis4me t o. 1$&$. A##i+e t)l mo+i-i#)tio s i ) e5isti ( obli()tio +o ot e5ti (uis4 it by o3)tio .t4e ol+ +ebt by t4e e5/ress terms o..t4e /)rties .ee ) /ri #i/)l ) + ) )##i+e t)l #o +itio i t4e #o tr)#t or obli()tio is rel)ti3e.t4e ol+ o e1 or by subro()ti ( ) t4ir+ /erso to t4e ri(4ts o.ee t4e /)rties +o ot #o stitute o3)tio . !1$%. +ebtor i /l)#e o.ill ot e5ti (uis4 t4e ori(i )l obli()tio . 1..t4e #re+itor is +es#ribe+ )s sub2e#ti3e !or /erso )l' o3)tio . I or+er t4)t ) obli()tio m)y be e5ti (uis4e+ by ) ot4er .ob2e#ti3e o3)tio is to t)6e /l)#e1 it is im/er)ti3e t4)t t4e e. I ot4er .4i#4 substitute t4e s)me1 it is im/er)ti3e t4)t it be so +e#l)re+ i u e0ui3o#)l terms1 or t4)t t4e ol+ ) + t4e e.t4e #re+itor. 1$&=.(.t4e obli()tio . .4i#4 is to e5ti (uis4 t4e ol+.ee t4e /)rties to t4e ori(i )l #o tr)#t is e5te +e+ to ) t4ir+ /erso .t4e obli()tio by ) subse0ue t o e .t4e obli()tio by ) subse0ue t o e .t4e ol+ +ebtor is ot rele)se+1 o o3)tio o##urs ) + t4e t4ir+ /erso .4et4er t4e #4) (es i ) y (i3e #o tr)#t or obli()tio )re su--i#ie t to bri ( )bout ) o3)tio 1 must +e/e + u/o t4e -)#ts ) + #ir#umst) #es o.t4e #o tr)#t1 t4ere is o o3)tio B su#4 #4) (es . No3)tio t4rou(4 ) #4) (e o. ? A()i 1 i.t4e +ebtor be#omes merely ) #o-+ebtor or surety or ) #osurety. E.t4e +ebtor or o.4i#4 #o sists i substituti ( ) e.t4e +ebtor is to o##ur1 it is ot e ou(4 t4)t t4e 2uri+i#)l rel)tio bet.) y #4) (e m)+e by t4e /)rties . @)yme t by t4e e.4i#4 termi )tes it1 eit4er by #4) (i ( its ob2e#t or /ri #i/)l #o +itio s1 or by substituti ( ) e. W4e t4e #4) (es re-er to se#o +)ry )(reeme ts1 ) + ot t4e t4e ob2e#t or /ri #i/)l #o +itio s o. I bot4 ob2e#ti3e ) + sub2e#ti3e o3)tio 1 ) +u)l /ur/ose is )#4ie3e+-) obli()tio is e5ti (uis4e+ ) + ) e. E No3)tio is e3er /resume+C it must be est)blis4e+ eit4er by t4e +is#4)r(e o. $.- No3)tio is t4e e5ti (uis4me t o. T4e +isti #tio bet.t4e #re+itor. No3)tio by t4e #4) (e o. A mere e5te sio o.4i#4 e5ti (uis4es or mo+i-ies t4e -irst1 eit4er by #4) (i ( t4e ob2e#t or /ri #i/)l #o +itio 1 or by substituti ( t4e /erso o.eit4er t4e /erso o.t4e #l)use t4)t is mo+i-ie+1 but )lso t4e i te tio o.it4 t4e ol+ o e.)ll t4e /)rties to t4e e. )(reeme t1 or by t4e )#ts o.t4e #re+itor.it4out t4e #o se t o.t4e /)rties ) + t4e e#o omi# si( i-i#) #e o. It m)y be e5/ress !by )(reeme t' or im/lie+ !i #om/)tible'. obli()tio s be o e3ery /oi t i #om/)tible .t4e mo+i-i#)tio .ill +e/e + u/o ) sou + )//re#i)tio o.. +ebtor i t4e /l)#e o. What are the re0uisites of no$ation? Art.t4eir im/ort) #e.t4e l)tter1 but ot .t4e emer(e #e o. T4e le()l e--e#t o. obli()tio be o e3ery /oi t i #om/)tible .4o 4)s )ssume+ t4e obli()tio o.' Can no$ation be presumed? It is e3er /resume+. =.t4e term o.

. E5/romissio . Art. +ebtorB 4e #e t4e #re+itor s4oul+ )(ree to )##e/t t4e substitutio i or+er t4)t it m)y be bi +i ( o 4im.it4out t4e 6 o.4o o--ers ) + t4e #re+itor )##e/ts ) t4ir+ /erso . T4is is so be#)use substitutio o.t4ese t4ree )re e#ess)ry.t4e obli()tio by re)so o.t4e ori(i )l +ebtor. I. .it4out 6 o.t4e o3)tio is by +ele()#io 1 ) + t4e e.t4e e.t4e substitutio is . It m)y be e5/ress or im/lie+1 simult) eous or ot1 or is it re0uire+ to be i ) y /)rti#ul)r -orm.o e -or ) ot4er m)y +el)y or /re3e t t4e -ul-illme t o.it4out 4is 6 o. 1$&.t4e +ebtor1 t4e +ebtorKs i sol3e #y or o --ul-illme t oobli()tio s s4)ll ot (i3e rise to ) y li)bility o t4e e.t4e i )bility or i sol3e #y o.le+(e or )()i st t4e .ill o.t4e o3)tio is by e5/romissio 1 ) + t4e e. .s the consent of creditor re0uired? W4et4er e5/romissio or +ele()#io 1 t4e #o se t o. +ebtor /)ys t4e +ebt .le+(e1 si #e it #o sists i ) t4ir+ /erso )ssumi ( t4e obli()tio .4i#4 t4e i iti)ti3e -or t4e #4) (e +oes ot em) )te -rom t4e +ebtor ) + m)y be m)+e e3e .s the consent of the new debtor necessary? O-#ourse1 be#)use 4e is to )ssume ) obli()tio .o w h o m c a n t h e n e w d e b t o r d e mand reimbursement? I. . $. +ebtor /)ys t4e obli()tio 1 4e #oul+ +em) + -rom t4e ol+ +ebtor .s the release of the old debtor re0uired in order that a new debtor may be substituted? It is re0uire+.s the consent of the old debtor re0uired? I e5/romissio t4e #o se t o.. .4ile i +ele()#io t4e ol+ +ebtors #o se t is re0uire+ -or it s4)ll be i iti)te+ i 4is i st) #e.4o #o se ts to t4e substitutio 1 so t4)t t4e #o se t o. "ele()#io is by t4e +ebtor .What are the two forms of substitution of debtor? 1. t4e t4e /)rt o.4)t 4e 4)s /)i+.t4e ol+ +ebtor1 t4e -ormer #) re#o3er o ly i so-)r )s t4e /)yme t 4)s bee be e-i#i)l to t4e ol+ +ebtor.le+(e o.t4e #re+itor is re0uire+. ! ' .t4e ol+ +ebtor is ot e#ess)ry1 . I.

n case the new debtor became insol$ent.) o3)tio 1 )##essory obli()tio s m)y subsist o ly i so-)r )s t4ey m)y be e-it t4ir+ /erso s . to t4e +ebtor1 .4i#4 +oes ot e5em/t t4e ol+ +ebtor -rom li)bility +ue to t4e e.) +ebtor . 1$&D1 . +ebtor is bou + soli+)rily . +ebtor1 .4o +i+ ot (i3e t4eir #o se t.4o 4)s bee /ro/ose+ by t4e ori(i )l +ebtor ) + )##e/te+ by t4e #re+itor1 s4)ll ot re3i3e t4e )#tio o. 1$&E.oul+ be . can the new debtors liability be enforced against the old debtor who has =nowledge of the no$ation? It +e/e +s. i. 1$&D. can the new debtors liability be enforced against the old debtor who has no =nowledge of the no$ation? Io3)tio is by e5/romissio 1 o li)bility -or t4e e.it4out 4is 6 o.4ile i t4e -ormer1 4is li)bility i )ll #)ses o o -ul-illme t .4ere t4e e. To m)6e t4e ol+ +ebtor li)ble i e5/romissio sim/ly be#)use 4e 4)s 6 o.it4st ) + i ( 4 i s 6 o. Art.4o too6 t4e i iti)ti3e ) + o--ere+ ) e.4i#4 mi(4t 4)3e bee m)+e . .t4e e.t4e +ebtor #. T4e e5#e/tio /ro3i+e+ 4)s re-ere #e to ) sti/ul)tio i -)3or o.le+(e be#)use ob3ious i te t o. obli()tio .le+(e1 or 6 o.oul+ be limite+ to t4e t.4e t4e +ele()te+ 4is +ebt.t4e t4ir+ /erso is o ly ) )(e t o. +ebtor9s i sol3e #y #) be e -or#e+ )()i st t4e ol+ +ebtor1 be#)use t4e l)tter +i+ ot 4)3e t4e i iti)ti3e i m)6i ( t4e #4) (e1 .ell )s (u)r) tors ) + sureties1 u less t4e l)tter )(ree to be bou + u +er t4e e. !1$%E)' !"ELEGACION' Ot4er mo+es ..it4out limit)tio .le+(e.n case the new debtor became insol$ent.t4e )ssum/tio o4is +ebt by ) ot4er1 or t4)t 4e )sse te+ to it1 .4e s)i+ i sol3e #y . +ebtor i 4is /l)#eB i t4e l)tter #)se1 t4e li)bility o. +ebtor9s i sol3e #y> ).)s )lre)+y e5isti ( ) + o/ubli# 6 o. !1$%?' A##essory obli()tio su#4 )s /le+(es1 mort()(es )s .t4e #o+e is t4e rele)se t4e ol+ +ebtor. I #)se o.4i#4 is .e5/romissio 4e is )lso rele)se+ -rom li)bility ot. Art.t4e l)tter )()i st t4e ori(i )l obli(or1 e5#e/t . +ebtor is o ly se#o +)rily li)ble b.o e5#e/tio s /ro3i+e+ i )rt. W4e t4e /ri #i/)l obli()tio is e5ti (uis4e+ i #o se0ue #e o.it4 t4e ol+ +ebtor.le+(e o.t4e e.t4e t4ir+ /erso 1 .t4e ol+ +ebtor . . T4e i sol3e #y o.oul+ m)6e 4is li)bility e3e (re)ter t4)t t4)t o. i.

1$&J. 1=%$. A(reeme t is re0uire+.4e ) ulme t m)y be #l)ime+ o ly by t4e +ebtor or .t4e ori(i )l obli()tio sus/e si3e or resolutory #o obli()tio s4)ll be u +er t4e u less it is ot4er. ! .t4e #re+itor is eit4er le()l or #o 3e tio )l.s it re0uired that an obligation must arise from a contract? No1 ) y obli()tio m)y be t4e sub2e#t o.4o 4)s bee subro()te+ i 4is /l)#e i 3irtue ot4e /)rti)l /)yme t o. It is 3oi+ ) + #) ot be r)ti-ie+. A 3oi+ obli()tio #) ot be ) sour#e or ri(4ts1 or .t4e ori(i )l obli()tio 1 is sub2e#t to t4e #o +itio 1 t4e o3)tio itsel. will the old obligation subsist? T4e o3)tio ) ulle+.4o is /re-erre+1 e3e . !1$%&)' Art. Art.> .t4e #o +itio . obli()tio )re ot1 t4e 1 t4ere is o o3)tio 1 ) + t4e ol+ obli()tio subsists1 be#)use t4e re0uisite o) e. W4)t #) be r)ti-ie+ is ) 3oi+)ble obli()tio . !1$1$)' Art. Art.s it re0uired that there be agreement between the parties in order that no$ation will ta=e place? 7es. Alt4ou(4 te#4 i#)lly it is ) )##essory obli()tio 1 it i i s re)lity ) +isti #t obli()tio i -)3or o.) t4ir+ /erso re0uires t4e #o se t o.t4e e.subor+i )te+ by t4e /ri #i/)l obli()tio . ! ' Art. !1$%J)' . or not entirely $oid. @e +i ( t4e 4)//e i ( o. 1=%1.#o -usio )s to t4e l)tterKs s4)re. What is the effect of no$ation? W4)t i.t4e #o +itio 1 o3)tio +i+ ot yet t)6e /l)#e1 t4e ori(i )l obli()tio ot e5ti (uis4e+. . 1$&?.it4out t4e +ebtorKs 6 o.le+(eB!$' W4e ) t4ir+ /erso 1 ot i tereste+ i t4e obli()tio 1 /)ys .t4e s)me #re+it. T4ere m)y o ly be ) o3)tio )s ) result o. I. 1$&&. Subro()tio o.)i3)ble by t4e /)rties. Subro()tio tr) s-ers to t4e /erso s subro()te+ t4e #re+it . A #re+itor1 to . It is /resume+ t4)t t4ere is le()l subro()tio C O !1' W4e ) #re+itor /)ys ) ot4er #re+itor .it is )tt)#4e+ to t4e ol+ obli()tio 1 t4ere is o o3)tio )t )ll. obli()tio be e -or#e)ble.ise sti/ul)te+.)y ) 3oi+ ori(i )l obli()tio be 3)li+)te+> No. Can the creditor demand from the ob<ect of the old obligation if the no$ated ob<ect is loss? T4e #re+itor #) ot +em) + -rom t4e ori(i )l ob2e#t1 t4e l)tter is )lre)+y e5ti (uis4e+ by t4e e. obli()tio .t4e ori(i )l /)rties ) + o. obli()tio is i te +e+ to substitute t4e ori(i )l /ure obli()tio 1 t4e o3)tio itsel-1 ) + t4e #o se0ue t e5ti (uis4me t o. !1$1%)' What if there is a conditional new obligation. Art.it4 t4e e5/ress or t)#it )//ro3)l o.4om /)rti)l /)yme t 4)s bee m)+e1 m)y e5er#ise 4is ri(4t -or t4e rem)i +er1 ) + 4e s4)ll be /re-erre+ to t4e /erso .t4e )(reeme t o.it4out t4e #o se t o.)s sub2e#t to ) +itio 1 t4e e.t4e /)rties. 1=%%. !1$1=' What obligation may be no$ated? .o ly t4e #o +itio s )--e#ti ( t4e ol+ obli()tio )re -ul-ille+1 ) + t4ose )--e#ti ( t4e e.le+(e ot4e +ebtor1 ) /erso i tereste+ i t4e -ul-illme t o.it4 )ll t4e ri(4ts t4ereto )//ert)i i (1 eit4er )()i st t4e +ebtor or )()i st t4ir+ /erso 1 be t4ey (u)r) tors or /ossessors omort()(es1 sub2e#t to sti/ul)tio i ) #o 3e tio )l subro()tio .4e r)ti-i#)tio 3)li+)tes )#ts .t4e +ebtorB !=' W4e 1 e3e . I.t4e obli()tio /)ys1 .t4e #o +itio o t4e e.oul+ be l)#6i (. T4e o3)tio is 3oi+ i. is there no$ation? It +e/e +s1 i. I. Be#)use i. be#omes e--e#ti3e1 it is 3)li+ u til T4ey must )ll be -ul-ille+ i or+er t4)t o3)tio m)y be#ome e--e#ti3e ) + t4e e.) t4ir+ /erso i t4e ri(4ts o. obli()tio is 3oi+1 t4e ori(i )l o e s4)ll subsist1 u less t4e /)rties i te +e+ t4)t t4e -ormer rel)tio s4oul+ be e5ti (uis4e+ i ) y e3e t.t4e ori(i )l obli()tio .t4e #o +itio is )tt)#4e+ to t4e ol+ obli()tio or ot.) t4ir+ /erso 1 ) + #) ot be e5ti (uis4e+ by o3)tio .)s 3oi+1 e5#e/t . I. s)me #o +itio 1 ' O Art.it4out t4e 6 o.bot4 obli()tio s )re #o +itio )l1 ol+ ) + e.it4out /re2u+i#e to t4e e--e#ts o.t4e l)tter. 1=%. ! ' What if the new obligation is $oidable.o3)tio .4i#4 )re 3oi+)ble.+i+ ot t)6e /l)#e1 u til t4e 4)//e i ( o. 3)li+ obli()tio . Art. Co 3e tio )l subro()tio o. 1=%=.. T4e -ormer is ot /resume+1 e5#e/t i #)ses e5/ressly me tio e+ i t4is Co+eB t4e l)tter must be #le)rly est)blis4e+ i or+er t4)t it m)y t)6e e--e#t.t4e t4ir+ /erso .

Wit4out t4e +eli3ery t4ere is o +)#io e /)(o.oul+ )lso be ) mo+e oe5ti (uis4i ( #o tr)#ts be#)use1 i. Not e3e t4e St)te #) im/)ir t4e -ree+om o. can he himself be the lender? 7es.) e.bin s himself. I.T4ere .ise be e5ti (uis4e+1 e5#e/t t4ose . . /)rties .) mo+e o.)s ) le +er.:EU is li)ble u +er t4e #o tr)#t be#)use .m)y be t4e le +er.4i#4 . Contracts is defined as the meeting of the minds between two persons& Eay a person contract with himself? Contracts is a meeting of the min s bet!een t!o persons +parties. When a person is authoriHed to borrow money.(.f there are changes in the original obligation does it mean that there is no$ation? No. mo ey1 4e 4imsel. Iu)si "eli#t ./)rties to e ter i to #o tr)#ts1 . .t4e +ebtor o. T4is is #)lle+ t4e o im/)irme t #l)use.or yet ) ot4er /erso . 1.t4e /)rties ) + ) ulme t.ill be si( i ( )s re/rese t)ti3e o. T4e )ture o. ")#io is ) mo+e oe5ti (uis4i ( obli()tio . .s dacion en pago a contract? No. T4us1 -or ) )(reeme t to be#ome ) #o tr)#t t4ere must be ) #orres/o +i ( obli()tio )risi ( -rom t4)t )(reeme t.4is +ebt. obli()tio . o e e5ist1 e5#e/t /res#ri/tio .ill /rim)rily (o3er t4e rel)tio o. It is ot mere )(reeme t to +eli3er1 but r)t4er it is t4e +eli3ery. 7es. !ith respect to the other to give something or to ren er some service +inclu es not to o. T4is ri(4t is /rote#te+ by t4e #o stitutio .er ) + 4e 4imsel.m)rri)(e it is o ly +e)t4 /rim)rily .ill ot be li)ble u +er 0u)si +eli#t be#)use :EU .s marriage a contract? No it is #o si+ere+ )s ) s/e#i)l #o tr)#t be#)useC 1.o /erso s )s +e-i e+ i Art.t4e e5ti (uis4me t.t4e sti/ul)tio o.4ere)s i ) #o tr)#t o.s there such a thing as a mode of extinguishing a contract? 7es.t4e #4) (es +oes ot result i o3)tio 1 t4ere is o o3)tio .4ere t4ere is meeti ( ot4e mi +s bet.t4e /ri #i/)l or t4e borro. .s a contract an obligation? No.er. T4is #o tr)#t is 6 o. I t4)t #o tr)#t it i #lu+es t4e +uty o.4ere o e bi +s 4imsel.f A and B had an agreement.be si( i ( -or 4imsel.+Art. 1=%D . Contracts Are agreements contracts? Co tr)#ts )re )(reeme ts but ot )ll )(reeme ts )re #o tr)#ts. :EU 4o. S)lu+)() 3s.e3er1 .!hereb# one +reciprocal9t!o.e5ti (uis4i ( ) #o tr)#t1 . $.m)rri)(e1 it is t4e l). (o3er i ( l). )s ) )uto #o tr)#t.) obli()tio .e5ti (uis4me t is ) mo+e oe5ti (uis4i ( obli()tio s t4)t . Co tr)#t .4i#4 4)s )lre)+y bee 3este+. Co tr)#ts #re)tes ) obli()tio .ill #)use t4e e5ti (uis4me t ot4e obli()tio o. What auto contracts which are prohibited under 1hilippine law? .ill li6e. 130(-. . >>>>>> .ill ot e#ess)rily #o stitute ) #o tr)#t. T4is )ut4ority is sub2e#t to t4e rule t4)t t4e i terest s4)ll be o ly -or t4e m)r6et r)te.4i#4 .t4e se#urity (u)r+ m)y be 4el+ li)ble.) #o tr)#t is o e o. termi )tio .ill be e5ti (uis4me t o. I /res#ri/tio t4er e is o e5iste #e o.t4e ol+ obli()tio ) + ) e. is it a contract? A mere )(reeme t .t4e /)rties to su#4 m)rri)(e. I. $.to (i3e somet4i ( or to re +er some ser3i#e. It is o e o.i #o tr)#ts it +oes ot re0uire t4)t /)rties be m)le ) + ) -em)le. W4e ) /erso is )ut4oriAe+ to borro.it is i t4e e5er#ise o.)s ot t4e em/loyer o. I t4)t lo) )(reeme t 4e .t4e /)rties1 . .it e5ti (uis4es ) #o tr)#t t4e t4e obli()tio )risi ( -rom t4e #o tr)#t .t4e sour#es oobli()tio s. Asi+e -rom t4e #l)ssi-i#)tio 1 it (oes i to t4e )ture o. .t4e sour#es o. ")#io e /)(o is t4e +eli3ery o.t4e s#4ool to m)i t)i ) /e)#e-ul e 3iro me t ) + #o +u#i3e to le)r i (. I o e #)/)#ity )#ti ( -or o e /erso ) + i ) ot4er #)/)#ity -or 4imsel. =.s the right to enter into a contract a purely statutory right? No./oli#e /o.ee t.ill (o3er t4e ri(4ts ) + obli()tio s o.t4e /)rties .) t4i ( i s)tis-)#tio o. I ) )(reeme t . :EU A sophomore law student of (3: was shot by the security guard of (3:& De sur$i$ed and sued (3:& What possible liabilities may arise? .it4 t4e e5#e/tio i.4e t4e stu+e t e rolls i ) U i3ersity1 ) #o tr)#t is e tere+ i to. E.t4e se#urity (u)r+.T4e em/loyer o.t4ere )re so m) y mo+es o.4ere)s i ) #o tr)#t o.

#o -ro te+ by t4e m)#e+) l). 1.t4e l).t4e /ri #i/)l +ebtor1 t4e /ro/erty /le+(e or mort()(e .!!! a month on the ground that there is inflation pro$en by the fact that the exchange rate of peso to the dollar is "> pesos to >! pesos& Brian refused to pay in the increased rate.t4e /eso +e3)lu)tes1 t4e t4e re t)l o. T4is is ) sti/ul)tio /)#tum leo i )1 . is t4)t t4eses sti/ul)tio s s4oul+ ot be #o tr)ry to l). @)#tum Commissorium i ) #o tr)#t o.o e o. >!I will go to A. e+ by t4e /le+(ee or mort()(ee.&1P1Q'.4ere t4ere is ) sti/ul)tio bet.#o tr)#ts D. Guly .#o tr)#ts !Art.4ere .t4e /ro/erty o.s it correct to say that only one of the parties to a contract will be obligated to perform the contract because as defined that an obligation is the meeting of the minds of the parties where one binds himself to gi$e something or to perform a ser$ice? No. T4is is be#)use t4e (u)r+i) #) ot sell -or 4imsel. in that contract it was stipulated that of the profits of the partnership.s there an obligation not to do arise from contracts because as defined that an obligation is limited to an obligation to gi$e and to render some ser$ice? 7es t4ere is ) obli()tio F ot to +oG . .4ere t4e 4)//e i ( o.ee t4e /)rt ers .4e t4e 3)lue o.#o tr)#ts What is autonomy of contracts or freedom of contract or liberty to stipulate? T4e #o tr)#ti ( /)rties m)y est)blis4 su#4 sti/ul)tio s1 #l)uses1 terms ) + #o +itio s )s t4ey m)y +eem #o 3e ie t1 /ro3i+e+ t4ey )re ot #o tr)ry to l).hus. T4e l).!!! each? No. It is ot merely u il)ter)l. )uto omy o. mutu)lity o.ill /ros/er.)i3er i.ee t4e /)rties1 be#)use .it4out t4e #o se t o. A (u)r+i) is /ro4ibite+ -rom )#0uiri ( by /ur#4)se t4e /ro/erty o.1 mor)ls1 (oo+ #ustoms1 /ubli# or+er or /ubli# /oli#y.#o tr)#ts .t4e /roblem #o3ers issues u +er t4e m)#e+) l). (undamental 1rinciplesLCharacteristics of Contracts9 What are the fundamental characteristics of a contracts? 7>8 1.)i3ers )re ot 3)li+.oul+ be ) 3oi+ . W)i3er )s to -uture -r)u+ is ) 3oi+ . T4is is be#)use t4is sti/ul)tio )s to t4e +i3isio os4)ri ( is 3oi+ u +er t4e l).t4e /)rt ers -rom s4)ri ( i t4e /)rt ers4i/ /ro-its. @)#tum +e o )lie +o is ) 3oi+ sti/ul)tio /ro4ibiti ( t4e mort()(or -rom )lie )ti ( 4is /ro/erty .1 t4e t4)t #l)use +e#l)res to be ) 3oi+ #l)use.n a contract of partnership entered into by A.t4e +e3)lu)tio m)y /ros/er.4et4er t4is sti/ul)tio is #o tr)ry to l).) /le+(e or mort()(e is ) 3oi+ sti/ul)tio . ))F Brian leased and office space of a building at the rental rate of . obli()tory -or#e o. 1=%E' $.<o +) t4e buyers )re obli()te+ ot to use t4e #)rs )s ) t)5i#)b. I.t4e seller is i b)+ -)it4.!!! a month& .4i#4 m)y )rise -rom ) #o tr)#t ) + ..t4e . t4e l). Eay an escalation clause be rendered $oid or ineffecti$e? . rel)ti3ity o.) #ert)i #o ti (e #y1 t4e #om/e s)tio o. W4ile t4e /)rties #) est)blis4 su#4 sti/ul)tio s1 #l)uses1 terms ) + #o +itio s )s t4ey m)y +eem #o 3e ie t1 t4e re0uireme t o.#o tr)#ts =.1 mor)ls1 (oo+ #ustoms1 /ubli# or+er or /ubli# /oli#y !Art.!!! profit was earned by the business of the partnership. As to l). Su#4 is ) re)so )ble sti/ul)tio bet.4ere t4ere is ) sti/ul)tio bet.t4e /)rties m)y be i #re)se+. #o se su)lity o. T4is is #)lle+ ) es#)l)tio #l)use .1 mor)ls1 (oo+ #ustoms1 /ubli# or+er or /ubli# /oli#y. who will share this profit? Will A and B share >!.t4ere is ) .ill )utom)ti#)lly be o. Are wai$ers $alid? Ge er)lly1 yes. <o. Eay a forfeiture clause in a contract be $oid? 7es. :or e5)m/le i S)les1 i. Sti/ul)tio s #o tr)ry to l).)i3er.)r+ !)rt.)r+.)i3er )s )()i st t4e seller i #)se o.s .11%%% /esos ) mo t4 is o lo (er ) re)so )ble re t1 4e #e /ro/er i #re)se i re t)ls )s ) result o.. As ) e5)m/le1 i t4e +e)lers o. .4i#4 e5#lu+es o o.oul+ re +er t4e +e-i itio +e-e#ti3e. B and C. 1=%E'. the other >!I will go to B& . Su#4 sti/ul)tio is ot ) 3oi+ sti/ul)tio 1 )s it is ot #o tr)ry to l).e3i#tio .s . . T4)t .4ere it /ro3i+es t4)t u/o +e-)ult o.1 ..4is .t4e mort()(ee.e3er t4ere )re l).he lease contract stipulated that in case of inflation or de$aluation of the 1hilippine peso the monthly rental may be increased depending on the amount of de$aluation of inflation of the peso to the dollar& 4tarting Guly "!!! the lessor increased the monthly rental to ". if a !!. @)#tum Leo i ) . re +ers it to be 3oi+ i.4i#4 e5#lu+es o o. or ot is to 6 o.1.ee t4e /)rt ers . T4e /)rties m)y est)blis4 su#4 sti/ul)tio s1 #l)uses1 terms ) + #o +itio )s t4ey m)y +eem #o 3e ie t. and an action for unlawful detainer was filed against him& Will the action prosper? Why? T4e )#tio .t4e /)rt ers -rom s4)ri ( i t4e /)rt ers4i/ /ro-its. It is ) +e-e#t i t4e +e-i itio be#)use re#i/ro#)l obli()tio s m)y )rise -rom #o tr)#ts. T4e sti/ul)tio t4)t i #)se o+e3)lu)tio o.t4e /eso1 t4e i #re)se i re t)ls m)y be +o e.4i#4 +e#l)res #ert)i sti/ul)tio s to be 3oi+.

)s ) E5e#uti3e Vi#e @resi+e t o. Co tr)ry to mor)ls What stipulation may be considered immoral by the 4upreme Court? I terest or /e )lties sti/ul)tio .C. @ubli# /oli#ies m)y be see o t4e -u +)me t)l l). s#4ools.m)6ers.t4is es#)l)tio #l)use is /ro3i+e+ i t4e #o tr)#t olo) .%% /esos1 t4e Su/reme Court s)i+ t4)t t4e D /eso /e )lty is 3oi+ -or bei ( #o tr)ry to mor)ls1 u #o s#io )ble1 ) + e5#essi3e.t4e /e )lties s4oul+ be D /esos ) +)y -or e3ery +)y o. o.t4e Com/) y ) + 4er 2ob is 4i(4ly #o -i+e ti)l ) + 4)3i ( su--i#ie t 6 o. t4)t m)y be #ite+ by t4e l).+el)y m)y eit4er be immor)l or mor)l +e/e +i ( o t4e /ri #i/)l )mou t.t4e -ore(oi ( /ro3isio s4)ll re +er t4e em/loyee li)ble to t4e em/loyer i t4e )mou t o. T4is is ot )bsolute /ro4ibitio i rel)tio to t4e /erio+ !$ ye)rs' ) + tr)+e or )re) oe ()(eme t !/re. I. T4e #l)use s4oul+ ot be b)se+ o o e o. <o.) l).'.<o ( Ro (1 it #) ot be e -or#e+ i t4e @4ili//i es. .4im o.ill limit t4e ri(4t o. but when she returned to the 1hilippines.ee+ busi ess o ly i t4e @4ili//i es'.tr)+e.merit ) + s4oul+ ot be (r) te+ i or+er to bolster t4e re/ut)tio o.ill be ) /ubli# /oli#y be4i + t4e l).4ere t4e /ri #i/)l )mou t is . Arrell) o S#4ool o. :urt4er1 su#4 es#)l)tio or i #re)se i i terest s4oul+ be o ly o #e ) ye)r.l).= /er#e t /er mo t4 /lus /e )lty !=EM /er ) um' o t4e #re+it #)r+ +e#i+e+ by t4e Su/reme Court is #o si+ere+ u #o s#io )ble1 i e0uitous1 ) + #o tr)ry to mor)ls. s#4ool1 4e s4oul+ ot be re0uire+ to reimburse !Cui 3s.t4e str)te(ies o.ee+ i +ustry )s t4e em/loyer. which reduced her salary to only #!! :&4& dollars per month& Da$ing no other choice she signed the contract.4et4er +ire#tly or i +ire#tly e ()(e i t4e s)me busi ess or belo (i ( to t4e s)me /re. I.) /erso )s -)r )s 4is li3eli4oo+ is #o #er e+1 ) + t4is . she demanded a salary differential of at least *!! :4 dollars a month& Both dragon ser$ices limited and its local agency claimed that the "nd contract is $alid under the laws of Dong Cong and therefore binding on Alma& .4y t4is es#)l)tio #l)use be #o si+ere+ 3oi+ is be#)use t4ere is o +e-es#)l)tio #l)use.4i#4 is t4e #o stitutio . ot4e l) +1 .le+(e o.4i#4 +oes ot im/)ir t4e ri(4ts o.s their claim correct? T4e #l)im is ot #orre#t e3e i.t pro$ided for a salary for one year with a salary of .t was submitted to and appro$ed by the 153A.t4e em/loyee.1%%1%%% /esos -or ) + )s li0ui+)te+ +)m)(es. It is )lmost . /l)ti um /l) s it .4i#4 /ro3i+es -ull /rote#tio to l)bor.it4 t4e em/loyer1 ) + i #)se o.) stu+e t .t4e /)rties. Alma was hired as a domestic helper in Dong Cong by the /ragon 4er$ices Aimited. i terest /er mo t4 is #o si+ere+ #o tr)ry to mor)ls it bei ( )lmost ?E /er#e t i terest /er ) um. Co tr)ry to /ubli# /oli#y Dow would you =now if there is a certain public policy in$ol$ed in relation to a certain topic? I. it was stipulated that if he would transfer to another law school he will ha$e to reimburse Arellano for the amounts which he should ha$e paid had he not been a scholar& . T4e re)so . howe$er when she arri$ed in Dong Cong she was as=ed to sign another contract.)#)li )o 3s. I o e #)se1 .4i#4 .4ere t4e s)l)ry is E%% +oll)rs is ) 3)li+ sti/ul)tio u +er t4e l). It s4oul+ be b)se+ o ) re)so )ble ) + 3)li+ st) +)r+.7es i.o ye)rs1 e ()(e i or be i 3ol3e .t4e sti/ul)tio i <o ( Ro ( . <e #e1 su#4 sti/ul)tio #o stitute ) re)so )ble #l)use .!!! :&4& dollars a month& .o e o.L). ")isy Tiu . A y bre)#4 o. T4is is be#)use t4ere is ) mo et)ry bo)r+ resolutio )s -)r )s lo) s )re #o #er e+1 i or+er -or ) es#)l)tio #l)use to be 3)li+1 t4ere s4oul+ be ) +ees#)l)tio #l)use. is /)sse+1 orm)lly t4ere .+)isy tiu 3s. but the latter refused to release the grades until he would reimburse Arellano as so pro$ided in the scholarship agreement& De paid under protest& De passed the bar exam and sued Arellano& What was the ruling of the 4upreme Court? T4e )(reeme t re0uiri ( reimburseme t is #o tr)ry to /ubli# /oli#y.oul+ be ) u re)so )ble restr)i t o. +oes ot re +er t4e B) 6 u )ble to re#o3er i terest1 but re+u#e+ t4e i terest ) + /e )lty to 1 /er#e t /er mo t4 !. Su#4 sti/ul)tio is #o tr)ry to our /ubli# /oli#y u +er t4e Co stitutio .) ts to tr) s-er to ) ot4er l). T4e D. T4e i terest o.e3er1 i t4is #)se su#4 is ot ) 3oi+ /ro3isio be#)use t4is is ot ) )bsolute /ro4ibitio .oul+ (i3e t4e b) 6 t4e ri(4t to i #re)se t4e i terest. Cui was a student and en<oyed a scholarship& Dowe$er.it4 ) y )sso#i)tio 1 #or/or)tio or e tity1 . 6on in$ol$ement clause in an employment contract. Su#4 i terest ) + /e )lties bei ( re +ere+ 3oi+ by t4e S.4et4er 3olu t)ry or -or #)use1 4eNs4e s4)ll ot -or t4e e5t t.he Aaw /ean of Arrellano at that time was the uncle of Cui& When the law dean transferred to another law school.%%M /er ) um /e )lty. through its local agent& 4he executed a standard employment contract designed by the 1hilippine 5$erseas Wor=ers Administration for o$erseas (ilipino wor=ers& .)s sti/ul)te+ t4)t Ft4e em/loyee +uri ( 4is e ()(eme t . B@I $%%& C)se'. is it $alid? I t4e #)se o. Cui also transferred& When he was about to ta=e the bar exams. It must be stresse+ t4)t ) es#)l)tio #l)use to be 3)li+ must ot be solely /otest)ti3e i #4)r)#ter. he as=ed for his grades from Arellano.se/)r)tio -rom t4e #om/) y . T4e /ubli# /oli#y i 3ol3e+ i t4is #)se is t4)t s#4ol)rs4i/ (r) ts )re (r) te+ o t4e b)sis o. Ge er)lly ) o i 3ol3eme t #l)use is ot ) 3)li+ #l)use be#)use it .D.t4e .t4e #om/) y1 it is but /ro/er -or t4e #om/) y to t)6e me)sures to /reser3e t4eir tr)+e se#rets.

<e m)y still be e title+ be#)use i or+er -or t4e re3o#)tio to be e--e#ti3e it 4)s to be #o se te+ to by bot4 /)rties. Ot4er.le)se . I t4e #)se o. <o. will the action prosper? T4e )#tio .oul+ +eli3er t4e (oo+s1 t4e Su/reme Court s)i+ t4is sti/ul)tio s4oul+ be #o strue+ )()i st .)s (i3e t4e ri(4t to termi )te t4e #o tr)#t by merely (i3i ( oti#e to t4e lessor1 ) + t4e termi )tio s4)ll t)6e e--e#t )-ter 1D +)ys -rom re#ei/t o.ee t. T4e S. So1 )s -)r )s t4e be e-it is #o #er e+ )s it .4et4er to )##e/t or to re2e#t t4e #o tr)#t.) t4ir+ /erso 'N .#o tr)#ts /ri #i/le. It is ot #o3ere+ by t4e mutu)lity o- . Louie Sy i 3ol3i ( ) #o tr)#t o.etro/olit) B) 6 3s. A re3o#)tio by o ly o e is ) 3iol)tio o. %uch contract !as presente to the other part# for his a hesion.4i#4 is t4e mutu)lity o.)s m)+e by . No o e #) be #om/elle+ to e ter i to ) #o tr)#t. 2o be a vali clause. to enter into an interconnection agreement& At that time when the action was filed. the telecommunication ser$ices within the country was controlled by 1A/. U +er t4is mutu)lity o. A )(reeme t bet.4i#4 /ro4ibite+ Sy +i#o -rom ru i ( is ) 3oi+ sti/ul)tio be#)use it is #o tr)ry to /ubli# /oli#y.)s )(ree+ u/o by bot4 /)rties1 it #) o ly be re3o6e+ by bot4 /)rties.Himmy Go.& Will the action prosper? @L"T #) ot be #om/elle+ by t4e Re/ubli# to e ter i to ) #o tr)#t.ise i.e3er1 i. @L"T 2epublic filed an action to compel 1A/.su#4 be e-it to t4e obli(or. T4e re)so is t4)t ) /)rty 4)s ) #4oi#e .t.4o )mo ( t4e #) +i+)tes is -it -or t4)t /)rti#ul)r /ositio . A case in$ol$ing a trust receipt which is a contract of adhesion& Gimmy @o 0uestioned the $alidity of the trust receipt claiming that it is a contract of adhesion& T4e trust re#ei/t is 3)li+ 4o.t4e /)rties re3o6e+ t4e be e-it i -)3or o.t4e be e-i#i)ry1 t4)t . Co se su)lity o. Atty& 5ng Yu was on his way to Butuan City and his luggage was lost and he filed an action against 1AA claiming damages& 1AA in$o=e a pro$ision in the contract +.)s rule+ i -)3or o.oul+ be #o tr)ry to t4e -u +)me t)l /ri #i/le o.4e t4e +em) + . Co se t must be -reely (i3e .etrob) 6. I or+er -or t4is sti/ul)tio be bi +i ( o t4e be e-i#i)ry1 4e must #ommu i#)te 4is )##e/t) #e be-ore t4e re3o#)tio o. Eay the termination of the contract by one of the parties be $iolati$e of this fundamental principle of mutuality of contracts? No.#o tr)#ts.4o /re/)re+ t4e #o tr)#t.t4em.o ly o e o. 4t shoul not solel# be potestative in character. Co se t must be 3olu t)rily (i3e i or+er to 4)3e ) 3)li+ #o tr)#t. What if one of the parties to the contract 7not the beneficiary8 re$o=ed the benefit. 2his is a contract of a hesion.t4e ele#tor)te to #4oose . and whoe$er would lose in that con$ention shall not run as an independent or rebel candidate& 4yndico the defendant lost in the party con$ention but she still run and won& 4aura sued 4yndico for damages.o e o. rule+ t4)t su#4 sti/ul)tio +oes ot 3iol)tio t4e mutu)lity o.t4e termi )tio . I.o /erso s #) ot ot limit 4imsel.)s tre)te+ )s ) e5/ro/ri)tio /ro#ee+i (. 4f an escalation clause !oul be invo)e b# one of the parties !ithout a reasonable an vali stan ar .Co tr)#ts.#o tr)#ts . CA'.f at all 1AA shall be held liable for the luggage.t4e oti#e o. Himmy Go'.#o tr)#ts.4ere t4e lessee .)s ) #) +i+)te i ) ele#tor)l #o test.t was stipulated in the agreement that they would ha$e to go through the process of con$ention.Co tr)#ts :or ) #o tr)#t to be 3)li+1 t4e /)rties must 3olu t)rily (i3e t4eir #o se t.t4ere is )mbi(uity i t4e #o tr)#t1 su#4 )mbi(uity s4)ll be #o strue+ )()i st t4e /)rty . T4e obli()tio be#)me +ue .e3er1 t4is )#tio . Sti/ul)tio /our )trui !Sti/ul)tio i ) #o tr)#t -or t4e be e-it o. Si #e it .@4ilb) 6i ( 3s.utu)lity o. A mere )(reeme t o. T4e )mbi(uity is to . Co tr)#t o. it must be base on a vali an reasonable stan ar . in fact he may ha$e sent a letter to the beneficiary informing the latter that the benefit in your fa$or in the contract which i entered into with B has already been re$o=ed& .ill ot /ros/er be#)use t4e sti/ul)tio .4e Himmy Go .An agreement of two persons $ying for special nomination as an official candidate of a congressional seat of the 6ationalista party& .A+4esio 2here is a contract !hich is claime to be voi allege l# for lac) of consent of one of the parties because the contract !as prepare onl# b# one of the parties.4o /re/)re+ t4e #o tr)#t1 su#4 )mbi(uity .C. Re/ubli# 3s.etrob) 6 .t4is -u +)me t)l /ri #i/le o.)+4esio is ) 3)li+ #o tr)#t. an there is practicall# no negotiation or consent as to the contracts terms an con itions.o /erso s #) ot limit t4e ri(4t o.mutu)lity o.etrob) 6 !.his re$ocatory letter has been sent by A before the beneficiary communicated his acceptance& /oes it mean that the beneficiary would no longer be entitled to this benefit? Not e#ess)rily.#o tr)#ts /ri #i/le1 ) #o tr)#t must bi + bot4 #o tr)#ti ( /)rties ) + its 3)li+ity ) + #om/li) #e #) ot be le-t to t4e . the %upreme Court !oul rule that it is contrar# to the mutualit# of contracts principle. such cannot exceed !! pesos-& Atty& 5ng Yu interpose that such stipulation was in a contract of adhesion and he did not consent to such contract& A #o tr)#t o.)s .bou(4t t4e ti#6et1 4e /r)#ti#)lly )##e/te+ t4e terms ) + #o +itio s !O ( 7u 3s.ill o.

%=1 t4)t . . thereafter B sold the same item to C& 5rdinarily would A ha$e the cause of action against C? 6one because there is no pri$ity of contracts between A and C& . does it mean that the contract already has the force of law? Not e#ess)rily.hey wor= > hours a day and night but always accompanied by their parents or other adults& .s the wai$er $alid and binding? T4e . and he said that the contract containing a wai$er of the right to file any complaint in any office or tribunal concerning the wor=ing conditions of the children acting in the mo$ies& .)i3er )s to t4e ri(4ts o. It is )t t4e time o. /on. .t4e )ture o. /rote#ti ( t4em .t4e /er-e#tio o. Auto omy o.oul+ be ) u e -or#e)ble #o tr)#ts. an American businessman secured parental consent for the employment of > minors to certain roleses in two mo$ies he was producing at home in Ea=ati& .he fact that there is already a meeting of the minds between the ob<ect and sub<ect matter of the cause. the usury law has not yet been suspended& .mi ors i rel)tio to t4e l). Si #e t4e /)rties )(ree+ o ly i. A y .it is ot i t4e -orm /res#ribe+ by l).)i3er 4ere is ) 3oi+ .1 but o ly ) mo et)ry bo)r+ resolutio 1 t4ere #) be o 3)li+ i #re)se i t4e i terest r)te.oul+ be )--e#te+1 be e-ite+ ) + .t4ere is ) l).#o tr)#ts /ri #i/le t4e /)rties #) est)blis4 su#4 sti/ul)tio s terms ) + #l)uses )s t4ey m)y +eem #o 3e ie t.he producer paid the children talent fees better than adult wages.he lessee died.he parties to the contract in the loan for money agreed that the yearly interest rate is "I will be increased if there is a law authoriHe the increase of the interest rates& 4uppose 5B would increase the interest rate by >I to be paid by .1 but it is ot ) l).hey sometimes dran= wine and in some cases they were exposed to drugs and sometimes they were filmed na=ed or in re$ealing costumes& /on. When would a contract ha$e the force of law between the contracting parties? .C.l).4i#4 /ro3i+es -or t4e /rote#tio omi ors.Y the borrower without a law authoriHing such increase. would that now gi$e the lender the increase in the rate considering their stipulation? T4e SC s)i+ o be#)use ) l). Gust because the contract has been perfected does it mean that such is already enforceable? Not e#ess)rily.)i3er be#)use it is #o tr)ry to l). Alt4ou(4 su#4 mo et)ry bo)r+ resolutio m)y 4)3e t4e -or#e o.n one case.e3er i.t4e #o tr)#t is sub2e#t to t4e st)tute o. 74tipulation8 . T4e )ssi( s ) + 4eirs )re /ri3y to t4e #o tr)#t.he Central Ban= at that time issued a monetary board resolution authoriHing an increase rate& With that monetary board resolution authoriHing the increase in the rate.n a lease contract decided by the 4upreme Court.s it possible that a contract will not affect the heirs. Si #e t4ere .t4ese ri(4ts ) + obli()tio s.1 t4e #o tr)#t must 4)3e bee /er-e#te+.. obligations arising from contracts have the force of la! bet!een the contracting parties. A #o tr)#t o. 1=111 #o tr)#ts t)6e e--e#t bet. I or+er -or ) #o tr)#t to 4)3e t4e -or#e o. T4ey )(ree+ t4)t t4ere #) o ly be ) i #re)se i. Si #e t4ere is o l).4e t4e ri(4ts ) + obli()tio s )risi ( -rom t4is #o tr)#t )re i tr) smissible.#o tr)#ts .-r)u+s.s)le m)y 4)3e bee /er-e#te+ be#)use t4ere is )lre)+y ) meeti ( o.4)t is #o3ere+ is t4e 3)li+ity or #om/li) #e1 it +oes ot /ert)i to t4e termi )tio o.)i3er be#)use t4is .4o .. T4ree s#e )rios .. in his defense.)s o l).#o tr)#t1 .1 t4ere #) be o 3)li+ i #re)se..t4e ri(4ts ) + obli()tio s . so /ro3i+esB $' I. would his heir would still ha$e the right to the possession of the leased premises until the expiration of the period? T4e S. or it is ot #o3ere+ by Arti#le 1.t is only A and B and B and C who has pri$ity of contract& 4o who would be bound to a contract? Or+i )rily t4e /)rties1 t4eir )ssi( s ) + 4eirs ) + t4ose . all these are part of artistic freedom and cultural creati$ity& 6one of the parents complained said /on.t4e #o tr)#t t4)t eit4er /)rties to t4e #o tr)#t #) #om/el t4e ot4er /)rty to /er-orm t4e obli()tio s u +er t4)t #o tr)#t. Rel)ti3ity o.l).t4e #o tr)#t. s)i+ o be#)use .oul+ be #o tr)ry to t4e l). there was a stipulation in the contract that the rights and obligations of the parties are intransmissible& .Y has a remedy against the imposition of such interest rate increase& Would 5B’s action be <ust and $alid? O-#ourse o.t4ere is ) sti/ul)tio B =' I. or not to benefit the heirs? 7es1 u +er t4is /ro3isio . Obli()tory :or#e o. but a social wor=er reported to 4W( that these children often missed going to school& . .4ere ri(4ts ) + obli()tio s )re i tr) smissibleC 1' W4e t4e l).4o #) be li)ble u +er t4e #o tr)#t. an shoul therefore be complie !ith in goo faith.Co tr)#ts 8n er this principle. is ot t4e s)me )s ) mo et)ry bo)r+ resolutio .t4e mi +s )s to t4e ob2e#t ) + t4e /ri#e1 4o. A #o tr)#t m)y t)6e e--e#t o ly u/o t4e /)rties .#o tr)#ts A sold an item to B.oul+ ot )llo.)s e5ti (uis4e+ be#)use t4e ri(4ts ) + obli()tio s )risi ( -rom t4e #o tr)#t )re i tr) smissible by sti/ul)tio . Be#)use su#4 /er-e#tio o.hereafter at that time.oul+ be ) 3oi+ .ee t4e /)rties1 t4eir )ssi( s1 ) + 4eirs. .t4e lessee1 t4e #o tr)#t .it4 t4e +e)t4 o. similar to this scenario that there should be law authoriHing such increase& . would that increase would be <ust and $alid? Would . t4e tr) smissibility o. U +er Art.t4ere is ) l). U +er t4e )uto omy o.

he defaulted& Can the mortgagagee foreclose the mortgage of this parcel of land? With the sale and the land may ha$e been deli$ered to C.t4is #o tr)#t is re(istere+ or e3e i. under whose law. )s t4e ri(4t i ) s/e#i-i# /)rt ers4i/ /ro/erty.su#4 ri(4ts it #) ot be )ssi( e+ to ) ot4er /erso 1 -or su#4 is ) /urely /erso )l ri(4t.n contracts in$ol$ing real rights8 .4i#4 4e is ot ) /)rty or i .it4 t4e )ture o.ot re(istere+1 C 4)s )#tu)l 6 o. in what circumstances may a third person may be bound to a contract? A t4ir+ /erso m)y be 4el+ li)ble i ) #o tr)#t i . er o3er t4e /ro/erty .li)bility o.4oe3er m)y be t4e o.le+(e o. so /ro3i+es1 e5#e/t .su#4 e ti#eme t. Si #e 87S Cor/.t4e term e ti#eme t ) + (i3i ( more )+3) t)(eous terms1 to t4)t e5te t it #) me) t4)t t4ere is su#4 m)li#ious i ter-ere #e o t4e /)rt o. 7By Contract or agreement8 A /ro/erty ri(4t o. a citiHen and resident of 6ew Gersey :4A.le+(e ) + merely )s6s t4e /erso to 2oi t4e #om/) y1 )//)re tly t4ere #) be o m)li#e.87S.oul+ be soli+)ry li)bility .4e t4ere is ) #o tr)ry sti/ul)tio i t4eir )(reeme t.) #o tr)#t. .le+(e osu#4 t4ir+ /erso o. A#tu)l 6 o. By t4e use o. m)y be 4el+ li)ble u +er Art. he was only a minor& 4uppose XYJ corporation was impleaded as a co?defendant. 1=1.4ere it /ro3i+e t4)t . $1&.C is t4e o. T4ere-ore t4e ri(4ts ) + obli()tio s o. !I #o tr)#ts i -r)u+ o.ill 4)3e ) #)use o. 7. . what would be the basis of its liability? 87S Cor/. .t4e #o tr)#t. he sets up his minority defense as for annulment of the contract on that ground& . 7By nature8 W4e t4e ri(4ts ) + obli()tio s )re /urely /erso )l or t4e 0u)li-i#)tio s o. 7Aaw8 :nder the law on usufruct. he is still a minor being only "! years of age which was hired by ABC corporation Eanila to ser$e for " years as its chief computer programmer& After ser$ing for only * months he resigned to <oin XYJ corporation which entice him by offering more ad$antages terms& Dis first employer sued him for damages arising from the breach of contract arising from his employment.4e ) t4ir+ /erso i ter-eres i ) #o tr)#t sub2e#t to t4e re0uireme t t4)t t4ere must be m)li#e i t4e i ter-ere #e.t4e /)rties i rel)tio to t4e #o tr)#t m)y be tr) smitte+ to 4eirs ) + )ssi( s.4i#4 #re)tes re)l ri(4ts1 t4e ri(4ts o.4i#4 is res#issible u +er Art. e ti#e+ :r) #is Albert o--eri ( t4e l)tter more )+3) t)(es terms me) t4)t t4e -ormer m)y be 4el+ li)ble -or m)li#ious i ter-ere #e be#)use o.t4e mort()(ee1 sub2e#t to t4e 0u)li-i#)tio o.4i#4 .4ole ) + i /)rt1 u less 4e is /ro4ibite+ -rom suble)si ( t4e /ro/erty.t4e #o tr)#t1 sub2e#t to t4e re0uireme ts omort()(e l). T4e b)sis o.t4e ot4er /)rt ers #) ot tr) smit 4is ri(4ts to ) )ssi( ee by l).1 t4e -irst re0uireme t o.4e $ or more /erso s )re 4el+ li)ble -or 0u)si +eli#t1 s4)ll be soli+)rily li)ble.4o m)y be bou + to t4is mort()(e. when the usufructuary dies. er1 4is ri(4ts . I.4e 4e m)li#iously i +u#e+ ) /)rty to ) #o tr)#t to 3iol)te t4e #o tr)#t. T4is is #ommo i #o tr)#ts . E3e i le)se #o tr)#ts1 )lso ) lessee or+i )rily suble)se t4e /remises i . 87S Cor/.But or+i )rily1 t4e 4eirs .ill still 4)3e t4e ri(4t to /ossess be#)use ) le)se #o tr)#t is ot ) /urely /erso )l #o tr)#t.4e 4e m)y be be e-ite+ or /re2u+i#e+ by su#4 #o tr)#t. .ee ABC ) + :r) #is Albert.it4 :r) #is Albert be#)use su#4 is ) tortious )#t ) + u +er Art. Or+i )rily B bei ( ) t4ir+ /erso .le+(e o. E3e i.ill i 3ol3e s6ills be#)use . 1=1.he plaintiff disputes this by alleging that the contract was executed in the 1hilippines under whose law the age of ma<ority is F. will his rights be transmitted to his heirs? No be#)use t4e l).4i#4 4e is ot /ri3y1 or ) t4ir+ /erso m)y 4)3e ) #)use o. is ) t4ir+ /erso i ) #o tr)#t e tere+ i to bet. 1=1. if the land is no longer owned by the mortgagor? 7es it is /ossible be#)use i su#4 #o tr)#ts .it4out )ll /)rt ers m)6i ( t4e s)me )ssi( me t o3er t4e s)me /ro/erty. C may already be the owner of the land& Eay there be still a $alid foreclosure o$er the land. is t4)t t4ere must be 6 o.n a contract in$ol$ing a real estate mortgage on a parcel of land entered into between A and B.t4e l). :or li)bility to )rise u +er Art.t4e ob2e#t or sub2e#t m)tter o. (rancis Albert.s ) + re(istr)tio l). A /)rt er )lo e .) /)rt er 6 o. When may a third person be held liable under a contract which he is not a party or pri$y to such contract? U +er Art.#re+itors' A sol+ ) /)r#el o.4o .t4e e5iste #e o. o mort()(e ) + re(istr)tio l).4e 4)s o 6 o.t4e l). I t4is #)se1 -or C to be bou + to t4is #o tr)#t1 t4ou(4 C is ot ) /)rty or /ri3y to t4is #o tr)#t1 o et4eless 4e ..87S .t4e mort()(ee )tt)#4es to t4e /ro/erty .ill be sub2e#t to t4e ri(4ts o.)#tio i rel)tio to ) #o tr)#t1 . .)#tio to t4is #o tr)#t.it4out t4e #o se t or 6 o. A /)rt er #) ot )ssi( 4is ri(4ts i ) s/e#i-i# /)rt ers4i/ /ro/erty . T4is is o e #o tr)#t ..oul+ be bou + i. But be#)use t4is #o tr)#t is i -r)u+ o#re+itors1 t4e l). A being the mortgagee and B being the mortgagor& A sells his land to C and thereafter if A the mortgagor is also the principal debtor. I #o tr)#ts i 3ol3i ( or #re)ti ( re)l ri(4ts1 t4ir+ /erso s .ill ot be bou + to t4e #o tr)#t or .l) + to B1 but t4e s)le is i -r)u+ o#re+itor 8.t4e /)rties 4)3e bee #o si+ere+ i t4e est)blis4me t o. ordinarily. 1=J1.n the principle of pri$ity of contracts.le+(e 4)s t4e s)me e--e#t )s re(istr)tio .s1 et#.t4is #o tr)#t.oul+ t)6e /ossessio o. (r) ts 4im t4e ri(4t to res#i + t4e #o tr)#t.

3iol)te+ t4e #o tr)#t.Eay the liability of a third person who maliciously interfered to the contract be more than the liability of a party to a contract who $iolated the contract? No.su#4 t4ir+ /erso #) ot be more t4) t4e li)bility o. I o e #)se t4e S. a bas=etball star was under a contract for year to play for and exclusi$ely for lady lo$e& 3$en before the bas=etball season could open.) /)rty to t4e #o tr)#t . he was offered a more attracti$e pay plus fringe benefits& 2oland accepted the offer for sweet taste& Aady lo$e sued 2oland and 4weet taste& /efendants claimed that the restriction to play for lady lo$e alone i .4o 4imsel.C. 2oland. 4el+ t4)t t4e li)bility o.

A agreed to deli$er his watch to B as a security in a $erbal agreement& Without this watch being deli$ered to B and before the deli$ery of the sum of money borrowed& Was there a perfected contract in$ol$e in the problem? T4e #o tr)#ts i 3ol3e i t4e /roblems )re 1' #o tr)#t olo) ) + $' /le+(e.t4is #o tr)#t1 +eli3ery o.su#4 #o tr)#ts is re0uire+ to be i ) #ert)i -orm to be 3)li+. A borrowed money from B& . As ) e5)m/le i ) ti#4resis1 t4e l).4e Violy9s #ou ter o--er .. A ti#4resis Are preparatory contracts accessory contracts? No. Art.oul+ e#ess)rily i #lu+e t4e e5ti (uis4me t o. What contract is not perfected by mere consent e$en if it is not a real contract? I. . . T4ou(4 t4ey #) ot be t4e e + by t4emsel3es1 t4ey #) st) + o t4eir o. Re)l Co tr)#tsC @er-e#te+ by +eli3ery o. I.sim/le lo) . Gri4)l+o'.su#4 e5ti (uis4me t o t4e lo) #o tr)#t is t4)t it . Alt4ou(41 Violy9s +eli3ery o. what contract was entered into& What rights and obligations of the parties under the contract? E% . Gu)r) tee $.)s )##e/te+1 t4e t4ere . Co se su)l Co tr)#tsC T4ese )re #o tr)#ts .ill ot e5ti (uis4 t4e /ri #i/)l be#)use t4e )##essory -ollo.oul+ )rri3e1 +oes ot )--e#t t4e /er-e#tio o.er or t4e le +er1 )s t4e #)se m)y be.t4e #)r is #o +itio e+ t4)t ste)ms4i/ <ele ) .he steamer howe$er.t4e obli()tio . T4is s4oul+ be #o si+ere+ )s t4e meeti ( o.o secure the fulfillment of his obligation. re0uires t4)t t4e )(reeme t )s to t4e /ri #i/)l ) + i terest s4)ll be i .n a problem in$ol$ing a contract where a thing was deli$ered. :orm)l Co tr)#tsC Co tr)#ts re0uire #ert)i -orm.A #4)ttel mort()(e bei ( ) )##essory #o tr)#t1 ) + )lt4ou(4 su#4 )##essory #o tr)#t is e5ti (uis4e+1 t4)t . T4e #o +itio 4ere is o ly to t4e -ul-illme t o..4ere t4e ob2e#t o.ise1 t4e +o )tio is 3oi+.ere +estroye+ +ue to ) -ortuitous e3e 1 )t best it .t4e #o tr)#t.ort()(e D. Bei ( ) )##essory #o tr)#t it +oes ot )t )ll )--e#t t4e obli()tio s u +er t4e /ri #i/)l #o tr)#t.s t4e /ri #i/)l.s)le be#)use .l). T4is #o tr)#t #) o ly be /er-e#te+ u/o t4e +eli3ery ot4e t4i ( or mo ey borro. /ri #i/)l #o tr)#ts . T4is is ot ) obli()tio to )rise. So1 e3e i.t4e +o )tio is ) re)l /ro/erty1 t4e +o )tio s4oul+ be i ) /ubli# i strume t1 ot4er.)s ) /er-e#te+ #o tr)#t o.e+ to t4e borro. :or t4e /er-e#tio o.t4e s#e )rio .oul+ o ly e5ti (uis4 t4e #4)ttel mort()(e.t4e obli()tio .4i#4 is /er-e#te+ by mere #o se t.4i#4 is /le+(e +e/osit or #ommo+)tum1 #le)rly mutuum or sim/le lo) is )lso ) re)l #o tr)#t )s e5/ressly /ro3i+e+ u +er t4e /ro3isio s o.t4e mi +s )s to t4e ob2e#t ) + t4e #o si+er)tio NoteC I. Re)l Est)te . t4e /ri #i/)l !Re/ubli# 3s. C4)ttel . /re/)r)tory #o tr)#ts #) st) + o t4eir o. @re/)r)tory #o tr)#ts )re /ri #i/)l #o tr)#ts. Ot4er e5)m/le .s)le1 ) + it bei ( ) #o se su)l #o tr)#t1 t4ere .ill -ollo.t4e ob2e#t or t4e sub2e#t m)tter ot4e #o tr)#t is re0uire+.)s )lre)+y ) /er-e#te+ #o tr)#t o.oul+ /ert)i to ) +o )tio 1 . may it be perfected? O-#ourse ot.t4e mi +s )s to t4e ob2e#t ) + ot to ) #o si+er)tio 1 t4ere is ) meeti ( o.ill ot e#ess)rily be t4e e + by t4emsel3es. I.it is ) 3oi+ #o tr)#t.t4e #ro/s .ort()(e E.4e -)ile+ to #om/ly .ise t4e ) ti#4resis is 3oi+.t4e )##essory #o tr)#t by o/er)tio o.f a contract is not $alid.it4 4is obli()tio u +er t4e #o tr)#t1 )s ) rule1 4e #) be 4el+ li)ble -or ot /er-ormi ( 4is obli()tio .ill ot be u se#ure+.t4e mi +s but t4ere is o /er-e#te+ #o tr)#t.t4e ob2e#t or t4e sub2e#t m)tter o.oul+ e3e )rise1 i. 1 t4ey )re ot )##essory #o tr)#ts. ne$er arri$ed because it was wrec=ed by a typhoon and sun= somewhere o$er the coast of 4amar& . Suretys4i/ =.s there a perfected contract in this case? Why? Si #e t4is is ) #o tr)#t o. Eerly offered to sell an automobile to Kioly for #!=. T4ese #o tr)#ts )re re)l #o tr)#ts. What are the accessory contracts? 1. T4e )##essory .he offer was accepted by Eerly& . 1=1E e umer)tes re)l #o tr)#ts1 t4ou(4 t4ere )re o ly = e umer)te+ re)l #o tr)#ts . @le+(e . T4ey )re e tere+ i to -or ot4er #o tr)#ts to be m)+e li6e )(e #y or /)rt ers4i/. I -)#t1 o obli()tio .he next day Eerly offered to deli$er the automobile but Kioly being short of funds secured postponement of the deli$ery& 1romising to pay the price upon arri$al of the steamer Delena& . after inspecting the automobile Kioly offered to buy it for >!=& . .riti (1 ot4er. No #o tr)#ts 4)s bee /er-e#te+ to bot4. T4e #o +itio 4ere is ot ) #o +itio -or t4e obli()tio to )rise1 be#)use t4e #o tr)#t 4)+ )lre)+y bee /er-e#te+.s)le. .t4e /ri #i/)l #o tr)#t1 t4e t4e )##essory #o tr)#t .t4ere is ) meeti ( o. T4e e--e#t o.oul+ /ert)i to t4e e5ti (uis4me t o.f the agent did not enter into a contract as he bound himself to do so in an agency to sell such that he did not sell anything of the goods of the principal& Will it affect the $alidity of the contract of agency? No.

/eed of 4ale o$er a certain car for 1 . . t4e #)use is /resume+ to e5ist1 so e3e i.s)-e6ee/i (> I.t4e +eli3ery .t4e #o tr)#t. E1 . is the sale $alid? 7es t4e s)le is 3)li+.i-e #) ot sell /ro/erty to e)#4 ot4er sub2e#t to #ert)i e5#e/tio s )s /ro3i+e+ t4erei .t4e #o tr)#t.t4e /ri#e'.it is merely ) tr) s)#tio t4is #oul+ be +)#io e /)(o si #e t4ere is tr) s-er oo.f the price does not appear in the contract. As ) rule1 t4e ille()lity o. 1=DD' . Remu er)tory O erous Co tr)#t .4ere t4e 4usb) + ) + .4i#4 is remu er)te+B ) + i #o tr)#ts o. .4ere t4e s)le to ) /erso . ers4i/. t4)t t4e #o tr)#t is 3oi+B it is #o si+ere+ o ly )s ) 3oi+)ble #o tr)#t be#)use i.n accessory contracts. Woul+ t4e +eli3ery result i t4e tr) s-er oo.it is -i#titious or simul)te+.)s o ly -or t4e use ) + e 2oyme t o.)s +eli3ere+1 t4e #o tr)#t #oul+ be ) le)se or #ommo+)tum. I. Co tr)#ts o. C)use is t4e esse ti)l re)so 1 moti3e is t4e /erso )l re)so .t4ere is ) /ri#e to be /)i+ -or t4e use ) + e 2oyme t o.n a deed of sale.6illi ( ) /erso 1 . what rules should apply? Rules o obli()tio s ) + #o tr)#ts. I. ./ure be e-i#ie #e t4e mere liber)lity o. Be#)use i. A /erso )l re)so e3e i.) t4i ( or ser3i#e by t4e ot4erB i remu er)tory o es1 t4e ser3i#e or be e-it .t4e be e-)#tor.ot st)te+ i t4e #o tr)#t it is /resume+ to be l). ers4i/> W)s t4e /ur/ose o. I.S/e#i)l Rules (o3er i ( t4is #o tr)#t.-ul1 t4e #o tr)#t is 3)li+.it #) be /ro3e t4)t t4ere is ) ot4er #)use .f the cause stated in the contract is a false cause.f the stipulation of the parties are not sufficient to resol$e the contro$ersy. would that be affected by the moti$e? 7es. is the contract $oid? No. It mi(4t )--e#t t4e 3)li+ity i. Ri +s o. ers4i/ it m)y be ) #o tr)#t or tr) s)#tio .It +e/e +s o t4e i te tio o.t4e /)rties )s to t4e e--e#t o.<o/e is ot #ommut)ti3e1 li6e lotto or s.t4e #)use is -)lse1 it +oes ot -ollo. su#4 )s lesio su--ere+ by ) .t4e t4i ( to be +eli3ere+ is e0u)l to t4e 3)lue o. Lesio +oes ot )--e#t t4e 3)li+ity o) #o tr)#t e5#e/t i #)ses /ro3i+e+ by l). is the contract $alid? T4e #)use is -)lse i. <o. 1=D% I o erous #o tr)#ts t4e #)use is u +erstoo+ to be1 -or e)#4 #o tr)#ti ( /)rty1 t4e /rest)tio or /romise o.)y ) #o tr)#t be 3oi+ be#)use t4e moti3e is ille()l or u l).t4e /erso or moti3e /re+omi )tes t4e /ur/ose o. T4e +i--ere #e t4is time (oes i to t4e )ture o. . Commut)ti3e .)r+ u +er res#issible #o tr)#ts. what is the cause? As to t4e seller1 it is t4e /ri#e1 )s to t4e buyer it is t4e t4i ( sol+.t4e #o tr)#t )s to t4e #)use.t4e t4i (1 t4)t is ) le)se.o.-ul> 7es i #)ses .f the person entered into a contract to a$oid a threatened in<ury. ers4i/.Ser3i#e Art.e3er1 . .4e t4ere is -r)u+1 mist)6e or u +ue i -lue #e1 t4e it is ot 3)li+1 it is 3oi+)ble !Art. I.4ose moti3e is o ly to #ir#um3e t t4e /ro4ibitio u +er Art.o.u l).ot1 rules ) )lo(ous to obli()tio s ) + #o tr)#ts. I omi )te .t4e buyer bou(4t ) (u -or t4e /ur/ose o.4i#4 is true ) + l). But it #) ot be ) le)se or #ommo+)tum be#)use t4ere is tr) s-er o.it i 3ol3es tr) s-er o.ill ot )--e#t t4e 3)li+ity o. .it is ) #o tr)#t it #oul+ be ) s)le1 b)rter.f the cause or reason why the seller sold the thing is to defraud his creditors.Le)se o. 1.t4e t4i ( by t4e ot4er /)rty> W)s t4e +eli3ery o ly -or t4e /ur/ose o. I. O erous $.t4e /le+(or or mort()(or is t4e s)me /erso 1 t4e #)use is t4e s)me. I.t4e t4i ( by t4e ot4er /)rty to . is the contract $alid? It is 3)li+ but t4e #o tr)#t m)y be #o si+ere+ +e-e#ti3e1 it is ) res#issible #o tr)#t. Nomi )te .t4e /ur/ose is o ly -or t4e use ) + e 2oyme t o.ee/st)6es.Wit4out ) )me When must the cause exist? It mist e5ist )t t4e time t4e #o tr)#t is e tere+ i to.t4e +eli3ery. I.-ul or ille()l +oes ot )--e#t t4e 3)li+ity o.s)le t4e 3)lue o./ure be e-i#ie #e =. what is the cause? It +e/e +s o t4e #o tr)#t. T4e /le+(or or mort()(or m)y be ) =r+ /erso . Are all contracts of sale commutati$e? No S)le o.)s t4e s)le 3oi+> No1 be#)use #)use is +i--ere t -rom moti3e.t4e /ur/ose o. But it4e use or e 2oyme t is (r)tuitous1 t4is #oul+ be #ommo+)tum.t4e #o tr)#t.&% .moti3e .t4e /rest)tio !i ) #o tr)#t o.4om t4e t4i ( .-ul.E0ui3)le t i t4e 3)lue o.Co tr)#ts )s to #)useC 1. .

(i3i ( #o se t1 e5#e/t .4ile i rel)ti3ely simul)te+ #o tr)#t1 t4ere )re )#tu)lly t.To be#ome t4e sub2e#t o2uri+i#)l rel)tio s.ee S ) + B1 it .s)le1 t4ere #) be o ser3i#e.) Co tr)#tC 1.4o is i #)/)#it)te+ by re)so o.ill )//ly i. I #)se o.t4e +is#o3ery o. status of the contract? Voi+.E.)s i +ee+ ) +eli3ery but o /)yme t . <e m)y be li)ble u +er torts.t4e #o tr)#t is e5e#utory. T4i ( $.2uri+i#)l rel)tio s'.e3er1 i.t4e /erso . Ob2e#t =. C)use .t4e /)rties 4)3e )lre)+y /er-orme+ t4e obli()tio t4ere is o room -or t4e st)tute o. may the offeror be held liable for damages? As ) rule1 o be#)use t4ere is o /er-e#te+ #o tr)#t. A contract entered into by a minor without the consent of the parents or guardian is $oidable.4ere t4e true i te tio or true #o tr)#t o. What distinguishes an absolutely simulated contract from a relati$ely simulated contract? I )bsolutely simul)te+ t4ere is o ly o e #o tr)#t1 . I ) #o tr)#t o. of age entered into a contract with a minor.4o misre/rese ts 4is )(e1 )//lyi ( t4e +o#tri e oesto//el. $. I.i ors )re i #)/)ble o. <e m)y be li)ble u +er torts . W4ere t4e #o tr)#t i 3ol3es t4e s)le ) + +eli3ery oe#essities to t4e mi or !Art.t4e /)rties )re #o #e)le+. Before the preparation of the contract.4i#4 /ert)i s to ) 3oi+)ble #o tr)#t1 t4e )#tio m)y /res#ribe be#)use ) 3oi+)ble #o tr)#t /res#ribes i . But t4e o--eror m)y be li)ble be#)use t4ere )re ot4er sour#es o.it4+r). Ri +s o.)#tio to ) ul ) #o tr)#t1 . Co se t $. An action was filed to nullify or to declare null and $oid a contract.l) +1 ) + B /)i+ S 1%1%%%1 .s a particular form or deli$ery an essential re0uisite of contracts? No re0uiri ( ) /)rti#ul)r -orm or to re0uire +eli3ery is ot ) ESSENTIAL eleme t o. C)/)#ity to )#t .I timi+)tio 1 Viole #e or U +ue I -lue #e. Can minors enter into a contract of sale? .f there is a withdrawal of the offer and there is no option contract. E$ . <o.esto//el. Ser3i#e =.er to +o )#ts . 1. will the statute of frauds apply? No it .obli()tio .it4 le()l e--e#ts !but m)y be sub2e#t o.o #o tr)#ts ./o. X.4e -or e5)m/le t4e o--eror 4)s )lre)+y +e#i+e+ to . $.)s m)+e to )//e)r t4)t S +eli3ere+ to B ) /)r#el o.t4e #o se t #e)ses i #)se o.4i#4 )re t4e esse ti)l eleme ts o. will the action prosper? I #)se o. what if the offerer withdrew the offer? As ) rule t4e o--erer 4)s t4e ri(4t to .4ere e#essities )re sol+ ) + +eli3ere+ to ) mi or or ot4er /erso .-r)u+s to )//ly. It is o ly #o se t1 ob2e#t ) + #)use . I ) #o tr)#t e5e#ute+ bet. ye)rs -rom t4e time t4e +e-e#t o. What are the =inds of capacity? 1. T4e #o tr)#t os)le e5e#ute+ is ot 3)li+ be#)use t4e #)use st)te+ is -)lse.(.it4out #)/)#ity to )#t1 t4e 4e must /)y o ly ) re)so )ble /ri#e !Art. Re0uisites o. what are the exceptions? 1.V)li+ity o.) #o tr)#t. Huri+i#)l #)/)#ity .4o is #)/)#it)te+ #) ot )lle(e t4e i #)/)#ity o. t4e o--er = mo t4s be-ore 4e m)+e t4e #ommu i#)tio to t4e ot4er /)rty1 4e m)y be #o si+ere+ e(li(e t.t4e s)me. @er-e#tio =.J&'.4e i -)#t t4ere .it4+r). W4ere t4e #o tr)#t is e tere+ i to by ) mi or . At the performance stage. ye)rs -rom t4e time o. St)(es o.#o tr)#ts )##or+i ( to sub2e#t m)tterC 1. 4is o--er )t ) ytime u less t4ere is o/tio mo ey or t4ere is ) #o si+er)tio )s somet4i ( /)i+ or /romise.J&'.t4e /)rties #) /ro3e t4)t t4e #)use oS (i3i ( t4e l) + to B is /ure liber)lity1 t4e t4)t #o tr)#t m)y be #o si+ere+ )s ) +o )tio . 1. Ne(oti)tio !@re/)r)tio ' $.mist)6e or -r)u+1 . . Co summ)tio Eay there be a perfected contract during the negotiation stage? 7es i o/tio #o tr)#t.Co tr)#tsC 1.) #o tr)#t. Ri(4t /oes it mean that all special contracts will ha$e the % sub<ect matters as $alid sub<ect matters of contract? No.)s e3er m)+e. Y =new the age of Y& Eay X demand annulment of the contract? No. I )bsolutely simul)te+ t4ere is )#tu)lly o #o tr)#t ) + t4e /)rties +i+ ot i te + to be bou + by ) y #o tr)#t )t )ll1 .4ile i rel)ti3ely simul)te+1 t4ere is ) #o tr)#t. A person without <uridical personality entered into a contract. A #o tr)#t e tere+ i to by ) /erso .

4e i or+er to .#o se t .t4e #o tr)#ti ( /)rties is #om/elle+ by ) re)so )ble ) + .4o )re /ro4ibite+ by l).oul+ (i3e ) /erso ) ri(4t to ) ul t4e #o tr)#t. Eay an agent buy the property of the principal? 7es1 /ro3i+e+ it is #o se te+ to by t4e /ri #i/)l.ell (rou +e+ -e)r o.) t ) #)r .4om t4ey re/rese t.i i timi+)tio 1 t4e /erso m)y )lre)+y i 3o6e t4e reme+y o.(u)r) ty . A ulme t is ) reme+y be#)use 4e #oul+ ot 4)3e e tere+ i to su#4 #o tr)#t . Viole #e or -or#e .4i#4 im/els 4im to e ter i to ) #o tr)#t1 .4e t4ere is ) error t4)t t4e /)yme t .&1'.4o )re #)/)#it)te+ to e ter i to #o tr)#ts but -or ot4er #o tr)#ts t4ey )re ot )llo. 1==%' .t4eir rel)tio s4i/ to t4e /erso . $C But1 i. 1==D'. !e.ill (i3e rise to #orre#tio 1 ot ) ulme t o.it4 ) /o.4is s/ouse1 +es#e +) ts or )s#e +) ts to (i3e 4is #o se t !Art.) immi e t ) + (r)3e e3il u/o 4is /erso or /ro/erty1 or u/o t4e /erso or /ro/erty o.#o tr)#t o. It is 3oi+ -rom t4e be(i i (.it4 .e+ by re)so o. ob2e#t o. . What are the $ices of consent? 1..T4ere is 3iole #e .t4e /ro/erty.e3er1 )s i t4e #)se o. i+e tity or 0u)li-i#)tio s o.oul+ (i3e rise to ) #o +itio . It is e#ess)ry 4o. is the contract $alid? Not e#ess)rily be#)use e3e i.4i#4 im/els t4e buyer to /ur#4)se t4e #)r. Not e3ery time t4ere is mist)6e .l).4e t4e /ri #i/)l #)use .t4e #o tr)#t b.er-ul e (i e. ulme t be#)use it .) ulme t . U +ue i -lue #e D. to e ter i to ) y #o tr)#ts.4i#4 . 1==D'. Sim/le error or mist)6e )s to )##ou t ./erso s +. #o +itio s . It m)y be 3)li+ i.)s (i3e by ) /erso .W4e o e o. <e #) ot i 3o6e ) ot em/loye+ u/o 4is /erso .t4e t4i (1 /rob)bly be#)use 4e is ) r)#e #)r +ri3er1 ) + 4e .t4e stereo m)y ot be t4e #o +itio . . 1C No.ist)6e or error $.4i#4 mo3es t4e #re+itor to )##e/t 4im )s ) (u)r) tor.4e t4ere is 3iti)te+ #o se t. I timi+)tio or t4re)t =.A is (i3e )ut4ority o.oul+ .(. 1.-)#t ) + ot o. Art. Viole #eNI timi+)tio Viole #e .4i#4 . to e ter i to su#4 #o tr)#t su#4 )s (u)r+i) s1 e5e#utors or )+mi istr)tors.What is absolute incapacity? @erso s .rest #o se t1 serious or irresistible -or#e is em/loye+ !Art.)s Vie. W4)t is /ro4ibite+ is )#0uiri ( /ro/erty. A ga$e consent with a contract with C& De ga$e consent in representation of B& .)s o ) #)s4 b)sis.t4e )lie is +is/osi ( o. t4)t t4e s)le . what is the status of the contract? It m)y be u e -or#e)ble.ist)6e An action was filed by the buyer of a car for the annulment of a contract on the ground that he was mista=en as to the brand of stereo of the car which is alleged to be 1ioneer but it was 4anyo& Would the court grant the prayer of the plaintiff for the annulment of the contract? No. :r)u+ or "e#eit !Art. error must be e5#us)ble1 ) + ot #)use+ by e(li(e #e e. may annulment be a remedy? :or t4e buyer1 it m)y be ) #o +itio .4o 4)s #)/)#ity to )#t1 t4e #o tr)#t m)y be 3oi+)ble . Eay an alien may ac0uire property by purchase in the 1hilippines? 7es1 ) )lie m)y )#0uire /ro/erty by /ur#4)se i t4e @4ili//i es1 /ro3i+e+ 4e is ) -ormer )tur)l bor #itiAe )s /ro3i+e+ i t4e Co stitutio . T4e mist)6e i t4e br) + o.. Kiolence was employed upon the spouse of the party claiming $itiation of consent? Would that be a $alid ground for annulment? Vie. A entered into a contract of sale payable on installment. What is relati$e incapacity? @erso s .f B did not authoriHe A to enter into the contract.t4e l). Dow can the alien sell if he did not ac0uire? <e m)y 4)3e )#0uire+ it by su##essio .4e 4e 6 e.4i#4 /ri #i/)lly mo3e+ o e or bot4 /)rties to e ter i to t4e #o tr)#t #. T4e /ossible mist)6e .oul+ /ri #i/)lly mo3e t4e buyer to /ur#4)se t4e #)r is t4e e (i e1 be#)use it (oes i to t4e esse #e o.f the plaintiff claims that he sold his fish pond at a time where there were lawless elements ro$ing in E= . Eay there be a contract of sale o$er a pri$ate land e$en if the alien is not a natural born citiHen? 7es1 i.ill ot be i i st)llme t. A contract was entered into by a person who has capacity to gi$e consent.it4 more re)so t4)t su#4 reme+y s4oul+ be )3)il)ble t4ere bei ( /4ysi#)l #om/ulsio . Eay the mista=e in the identity or 0ualification of persons re0uired in order to be a ground for annulment? Not e#ess)rily.t4e #o tr)#t. T4e error or mist)6e i or+er -or ) ulme t to /ros/er must be subst) ti)l re()r+i (C ). t4e error must be ) mist)6e o. I timi+)tio .

t4e #o tr)#ti ( /)rties.oul+ ot 4)3e )(ree+ !Art. should it always be money which is the consideration to the option agreement? Not e#ess)rily1 It is ) #o si+er)tio .4ere B )##e/te+ t4e o--er .f it was undue influence that was exerted by a %rd person upon one of the contracting parties. e'cept !hen the option is foun e upon a consi eration as something pai or promise +art.oul+ 4)3e e tere+ i to t4)t #o tr)#t u +er +i--ere t terms ) + #o +itio s. .t4e /erso i timi+)ti ( ) + i timi+)te+ s4oul+ be t)6e i to #o si+er)tio .ust be (i3e by t.it4out .4i#41 4e .oul+ )mou t to i 3olu t)ry ser3itu+e. =. NoteC Co se t is m) i-este+ by t4e meeti ( o.4i#4 is se/)r)te ) + +isti #t -rom t4e /ri#e. . T4is +uress is #)lle+ #olle#ti3e +uress . 1==E'.n a scenario where A can withdraw but has not withdrawn. Co se t must be i telli(e tly or -reely (i3e 1 )s ) rule . I ) i st) #e . T4ere is o more o--er to be )##e/te+.le+(e.his agreement was put into writing 7option agreement8& Assuming % months from the time the offer was made the offeror withdrew the offer and informed B& 5ne year thereafter B said . +oes ot /ro3i+e1 t4e ) s.Committe+ )-ter t4e /er-e#tio o.4i#4 is somet4i ( /)i+ or /romise+ .f there is an option agreement.)##e/t) #e1 ) + (i3es A o ri(4t to .)s .t4e ob2e#t ) + t4e #)use.t4e #o tr)#ti ( /)rties1 t4e ot4er is i +u#e+ to e ter i to ) #o tr)#t1 .or+s or m)#4i )tio s o. would that party ha$e a right to annul the obligation if he cannot pro$e collusion by the %rd person and the other contracting party? Wit4 or .. NoteC 1.it4+r). Dow is Consent manifested? ul t4e 1. A #) ot be #om/elle+ to sell.oul+ )mou t to i 3olu t)ry ser3itu+e. W4e B -i )lly +e#i+e+ to )##e/t t4e o--er1 A 4)+ )lre)+y . . an option money is gi$en. T4e reme+y o. Viole #e or i timi+)tio s4)ll ) ul t4e obli()tio )lt4ou(4 it m)y 4)3e bee em/loye+ by ) t4ir+ /erso .1 B is o et4eless /re#lu+e+ -rom #om/elli ( A to )##e/t t4e /ri#e be#)use t4)t . .that area where his fish pond was located& Dis neighbors also did the same& Eay he in$o=e that they were compelled to sell because of lawless $iolence? No. t4e o--er.. C)us)l -r)u+ t4)t .t4e .t4e o--er ) + t4e )##e/t) #e o.it4+r).t4e o--er ) + )##e/t) #e be#)use t4ere is o #o tr)#t to t)l6 )bout. 1324-.ill o.4o +i+ ot t)6e /)rt i to t4e #o tr)#t !Art.it4+r).i timi+)tio 1 t4e se51 )(e ) + #o +itio o. T4e reme+y o.t4e #o tr)#t.it4out #ollusio 1 t4ere is ) ri(4t to ) #o tr)#t. .B is to )s6 -or +)m)(es -or bre)#4 o.t4e /)rty is to )s6 -or +)m)(es.oul+ )lso )--e#t 3olitio or 3olu t)ri ess 2ust li6e 3iole #e ) + i timi+)tio . :r)u+ T4ere is -r)u+1 . "olo C)us) te . I +etermi i ( t4e +e(ree o.n the abo$e scenario where there is an option money gi$en after the withdrawal by A. A t4re)t to e -or#e o e9s #l)im t4rou(4 #om/ete t )ut4ority1 i.4e 1 t4rou(4 i si+ious . What are the re0uisites of consent? 1. "olo I #i+e te . .f $iolence. T4e reme+y o. $. A##e/t) #e m)+e by letter or tele(r)m +oes ot bi + t4e o--eror e5#e/t -rom t4e time it #omes to 4is 6 o. &hen the offerer has allo!e the offeree a certain perio to accept.o e o. may B compel A to accept the price? Si #e t4e (i3i ( o. 1==J'.#o tr)#t.o or more /)rties $. would that party ha$e a right to annul if he can pro$e collusion upon a %rd person? T4ou(4 t4e l). intimidation or undue influence is employed by a %rd person upon one of the contracting parties. 1 B #) ot #om/el A to )##e/t t4e /ri#e be#)use t4)t .B is ) )#tio -or +)m)(es +ue to bre)#4 o#o tr)#t. I or+er -or 3iole #e or i timi+)tio to be ) 3)li+ (rou + -or ) ulme t1 it s4oul+ ot be ) (e er)l +uress. A offered to sell his parcel of land to B& B could not decide whether he would but the land or not& A granted B " years to decide& .t4e #l)im is 2ust ) + le()l +oes ot 3iti)te #o se t. . T4ere #) e3er be ) meeti ( o. A o--er be#omes i e--e#ti3e u/o t4e +e)t41 E. the offer ma# be !ith ra!n at an# time before acceptance b# communicating such !ith ra!al.t4e #o tr)#tB t4e /)rty . may B compel A to accept the price? No. am buying the land& A said he does not want to sell the land& Eay A be compelled to sell the land? No. @)rties must be #)/)#it)te+ to (i3e #o se t1 )s ) rule =. It 4)s to be )#tu)lly em/loye+ u/o t4e /)rty or t4ose /erso s so /ro3i+e+ by l).4i#4 is ot ) (rou + -or ) ulme t ot4e #o tr)#t.oul+ m)6e t4e #o tr)#t 3oi+)ble1 ) + ) (rou + -or ) ulme t o.Committe+ be-ore or )t t4e time o/er-e#tio . E5/ress m) i-est)tio o.er is yes be#)use u +ue i -lue #e .) o/tio mo ey )mou ts to reser3)tio o.

&'1 ot4er. /oes the law re0uire rights to be transmissible to be the sub<ect matter of contracts? No. =.it4i t4e #ommer#e o. "etermi )te .he letter was recei$ed 7 ?">?!F8& .f the ob<ect of a contract a thing? Not e#ess)rily. It m)y or m)y ot be tr) smissible. 2e0uirements for ob<ect of contracts? 1.f A died on ?"%?!F would there a perfected contract? No e.A . Tr) smissible =. I.)s m)+e 6 o.est bi++er1 u less t4e #o tr)ry )//e)rs.t4i (s -or s)le )re ot +e-i ite o--ers1 but mere i 3it)tio s to m)6e ) o--er !Art.t4e /)rties /ro3i+e ot4er. Is it #orre#t t4)t i s/e#i)l #o tr)#ts = sub2e#t m)tters !t4i (1 ri(4t ) + ser3i#e' m)y be ) 3)li+ sub2e#t m)tter ot4e #o tr)#t> 7es. It m)y ot be tr) smissible i. "!!F when A sent a letter offering to sell his land to B& . When the law re0uires a particular form and the parties failed to comply.riti (1 ot4er.#o tr)#t. . re0uires ) /)rti#ul)r -orm1 t4e #o tr)#t ee+ ot be 3oi+ i.ee t4e +o or ) + t4e +o ee !Art. I. A+3ertiseme ts -or bi++ers )re sim/ly i 3it)tio s to m)6e /ro/os)ls1 ) + t4e )+3ertiser is ot bou + to )##e/t t4e 4i(4est or lo. Be#)use by t4eir 3ery )ture 1 it s4oul+ be li#it.l). An offer was made on Ganuary ". T4is is ) e5#e/tio to t4e rule o. would there be a perfected contract? No e..le)se. I.J'.t4e mi +s be#)use 4e .t4e )##e/t) #e. No s/e#i-i# )##e/t) #e is re0uire+ be#)use t4e o--er is m)+e to t4e /ubli#. I ) ti#4resis1 t4e )(reeme t )s to t4e /ri #i/)l ) + i terest must be i . 2e0uirements in order that a thing may be the sub<ect matter of contracts? It must be .ise i.is 3oi+. Ri(4ts o3er ) boo6 .Co tr)#ts /oes the law re0uire a particular form for the $alidity and enforceability of contracts? As ) rule1 t4e l). U less it )//e)rs t4)t t4e o--er is +e-i ite or #ert)i 1 busi ess )+3ertiseme ts o.t4e 3)lue o. re0uires t4)t ) #o tr)#t must be i ) #ert)i -orm to be 3)li+ ) + e -or#e)ble t4e t4is re0uireme t is )bsolute ) + i +is/e s)ble.t4e oti#e o.me $.ise t4e +o )tio s4)ll be 3oi+ !Art. It must ot be im/ossible.)s )lre)+y i s) e )t t4e time 4e 4)s 6 o. It m)y /ert)i to /er-orm) #e oobli()tio s to +o !t4i (s1 ri(4ts1 ser3i#es'.)r+ to ) yo e . +oes ot re0uire ) /)rti#ul)r -orm1 e5#e/t . .t4e l).riti (1 ot4er.1 mor)ls1 (oo+ #ustoms or /ubli# /oli#y. T4e )##e/t) #e by t4e o--eree m)y be re3o6e+ be-ore re)#4i ( t4e 6 o. t4)t i. two days thereafter 7 ? #?!F8 he sent his letter accepting the offer& . D.) obli(or /romises ) re.)##e/t) #e is re#ei3e+.)s merely i s) e )t t4e time 4e re#ei3es t4e letter1 t4ere . T4e t4i ( must be .f A was insane on ?"%?!F. 2e0uirements in order that ser$ice may be the sub<ect matter of contracts? It must ot be #o tr)ry to l).his letter was recei$ed " wee=s after 7 ? *?!F8. I. 1=$D'.t4e l).re3o#)tio re)#4es t4e o--eror be-ore t4e letter o. ?. +i+ ot /ro3i+e -or ullity o. I ) #o tr)#t o.me 1 ot4er.t4e o--eror. to t4e o--eror ) + ot -rom t4e time t4e o--eree m) i-este+ 4is +esire to e ter i to ) #o tr)#t. T4ere is o meeti ( o.4o /er-orms t4e )#t or )tt)i s t4e result.) /)rti#ul)r result1 s)i+ obli(or is obli(e+ to /)y t4e re. the contract is $oid? Not e#ess)rily. What contracts would be $oid if the parties failed to comply? "o )tio o. or sti/ul)tio o.) )#t or )#4ie3eme t o. Li#it .ill be o /er-e#te+ #o tr)#t. @ossible D.it is re3o6e+1 t4e #o tr)#t is ot /er-e#te+ i.#i3il i ter+i#tio 1 i s) ity or i sol3e #y o.ise it is 3oi+. :orm o.ise.ritte m)y be sol+. ED .ise it is 3oi+. ?.re)l /ro/erty must be i ) /ubli# i strume t i or+er to be 3)li+1 e3e bet.le+(e o.t4e l).n all other contracts? No1 )s i s)le o ly t4i (s ) + ri(4ts m)y be to sub2e#t os)le.t4e /erso )l /ro/erty +o )te+ e5#ee+s D t4ous) + /esos 1 t4e +o )tio ) + t4e )##e/t) #e s4)ll be m)+e i .t4e o--er is ot )##e/te+ t4e s)me is ot bi +i (. Eay future rights be sold? 7es. Ri(4ts /oes the law re0uire it to be licit? No. $.4e t4e l).4i#4 is still to be . T4e )##e/t) #e must be -rom t4e time it .le+(e o. E3e i. .it4i t4e #ommer#e o..eit4er /)rty be-ore )##e/t) #e is #o 3eye+.)r+ -or t4e re)liA)tio o.

n what contracts would the law re0uire a particular form for enforceability of contract? Co tr)#ts #o3ere+ by st)tute o. A went bac= to B and demanded the return of the money plus interest& B as=ed why should . Re-orm)tio /resu//oses ) meeti ( o. Re-orm)tio o. 4ale of public land.+ili(e #e re0uire+ t4)t s4oul+ be obser3e+ by t4e #ommo #)rrier s4oul+ be i . A sti/ul)tio re+u#i ( t4e +e(ree o.t4e be e-)#tor.e. NoteC I.riti (1 e3e i.riti (1 ot4er. 1J?J -.t4e mist)6e1 -r)u+1 i e0uit)ble #o +u#t or )##i+e t 4)s /re3e te+ t4e meeti ( o. Co tr)#ts #o3ere+ by Art. Voi+ #o tr)#ts )re i e5iste t1 so t4ere is ot4i ( to re-orm. therefore. What instances where reformation cannot prosper? 1.t4e /)rties is to #om/el e)#4 ot4er to e5e#ute ) /ubli# i strume t i.riti (.riti (. A deli$ered a sum of money to B which was accepted by B& 5ne year thereafter. NoteC T4e re0uireme t o.ill /re3)il1 be#)use +o )tio s re-le#t t4e liber)lity o. 1??='.i . I.it is i .ot i ) /ubli# i strume t1 t4)t .l) + t4rou(4 ) )(e t1 t4e )ut4ority o. re0uires t4)t it must be i ) /ubli# i strume t ) + must be re(istere+. O ly i strume ts m)y be re-orme+ ) + t4e re)so -or re-orm)tio is t4)t t4e i strume t +oes ot re-le#t t4e re)l i te tio o. .4erei o #o +itio is im/ose+ si #e t4e i te tio s o.)s o ly ) 3erb)l s)le or i . Si #e t4ere is o meeti ( o. if not in a public instrument would that be $alid and enforceable? It +e/e +s o . return the money. is the sale $alid? T4e s)le is 3oi+ be#)use t4e ) ti-#)ttle rustli ( l). . A #re+itor #) o ly +em) + i terest i.ise 3oi+ !Art.4ereby ) /ubli# i strume t is re0uire+ is o ly -or #o 3e ie #e ) + to bi + =r+ /erso s1 ot -or 3)li+ity ) + e -or#e)bility..t4e i strume t is bei ( re-orme+.t4e mi +s o.%=.s reformation a remedy? It . re0uested 4 to execute the public instrument of sale but the latter refused& Can B compel 4 to execute the public instrument of sale? 7es1 be#)use t4e #o tr)#t is 3)li+ ) + e -or#e)ble. it was a donation& A told him it is not a donation but a loan& .ee t4e /)rties.riti ( but ot i ) /ubli# i strume t. T4e re0uireme t t4)t ) /)rty m)y #om/el t4e ot4er to e5e#ute t4e e#ess)ry -orm is .riti (.t4e +o or .) /)rt er i s ) /)rt ers4i/ o.re(isteri ( t4e i strume t.t4e l). T4e #o te t o.t4e )(e t to sell must be i . 2e0uisites for reformation of instruments in a contract? 1.!!!& Aater./ri3)te i strume t1 t4e re(ister o. :)ilure o.I strume tsC Eay a $erbal agreement be the sub<ect of reformation? No.f the plaintiff as=ed for reformation of the instrument where it was stated +cocaine-.t4e mi +s o.ill be u e -or#e)ble be#)use it .ill re-le#t 4is /erso )l i te tio s. 1.Co tributio o. $. I.t4e /)rties1 t4e /ro/er reme+y is ) ulme t o.riti (1 ot4er. T4e #o tr)#t rem)i s to be 3)li+1 t4e ri(4t o. 5ral sale of large cattle.i ) /ubli# i strume t1 it m)y )lso bi + =r+ /erso s be#)use o ly /ubli# i strume ts m)y be re(istere+ i t4e re(ister o.s)le .i te tio +ue to mist)6e1 -r)u+1 i e0uit)ble #o +u#t or )##i+e t. . T4ere must be #le)r ) + #o 3i #i ( /roo-. but registration re0uires a public instrument& B. EE .#o tr)#t ) + ot re-orm)tio o. Si #e i t4is #)se t4e #o tr)#t is u e -or#e)ble1 )lt4ou(4 3)li+1 t4e ri(4t to e5e#ute t4e re0uire+ -orm #) ot be e -or#e+. but the real intention was morphine. S)le o.+ee+s 4)s o busi ess o.t4e mi +s. I.!!!& B needed a public instrument to register the sale at the register of deeds& Can B compel 4 to execute a public instrument of sale? No1 be#)use t4e #o tr)#t is u e -or#e)ble be#)use t4e s)me is ot i . .eeti ( o. B wanted to register the sale with the 2egister of /eeds.+ee+s. may reformation prosper? 7es be#)use t4e re)l #o tr)#t is ot ) 3oi+ #o tr)#t.4et4er t4e #o tr)#t o.-r)u+ u +er Art.:r)u+s.t4e /)rties $. 4 sold orally to B a parcel of land for !. I.(.4et4er it is ) s)le or +o )tio 1 ) + se#o +ly t4ere is o i strume t to be re-orme+1 re-orm)tio s4)ll ot be ) reme+y.ill be #o3ere+ by t4e St)tute o.ill )lre)+y be 3)li+ ) + bi +i ( )t le)st bet.t4e i strume t.4e t4e #o tr)#t is 3)li+ ) + e -or#e)ble. 1J?.3erb)l s)le it .) immo3)ble /ro/erty1 must be i .ise1 3oi+ !Art.m)+e i ) /ri3)te i strume t.t4e /)rties.'. . .t4e mi +s be#)use t4e /)rties +oes ot 6 o.ill ot be ) reme+y. I strume t +oes ot e5/ress t4e re)l i te tio o. 4 sold to B in writing a parcel of land for !. )(e t must 4)3e S@A to be e -or#e)ble )()i st t4e /ri #i/)l. Sim/le +o )tio s i ter 3i3os . =.t4e /)rties =. W4e t4e re)l )(reeme t is 3oi+. Wills be#)use t4e test)tor is )lre)+y +e)+1 ) + t4e .

t4e .. Sli(4t bre)#4 or #)su)l bre)#4 #) ot be t4e b)sis o ) )#tio -or res#issio u +er 11&1.t4e /)rties /re3)il e3e i. Eay a contract be rescissible.4ile 3oi+)ble #o tr)#ts e5ist.i terest s4)ll (o3er .or+s ) + /4r)ses )re #le)r )s to t4eir me) i (. I 11&1 t4ere must be ) bre)#4 .(r)tuitous1 t4e +oubt re-ers o ly to t4e i #i+e t)l #ir#umst) #e /ert)i i ( to t4e #o tr)#t1 ) + be#)use t4e /ri #i/le o. $.s t4)t t4ere is o +)tio i /)yme t. Eay rescissible.t4e /)rties1 su#4 )s t4e subse0ue t /)yme ts ) + t4e subse0ue t e5e#utio o. A stipulation in a contract of sale that payment is deemed made upon the signing of the contract& /espite such stipulation.it is ) o erous #o tr)#t1 t4e 4e .it4i . Res#issible Co tr)#tsB V)li+ u til res#i +e+B t4e +e-e#t is e5tri si# +e-e#t #o sisti ( o. unenforceable and $oidable contracts be ratified? U e -or#e)ble #o tr)#ts ) + 3oi+)ble #o tr)#ts m)y be r)ti-ie+. Voi+)ble Co tr)#tsB V)li+ u til ) ulle+.its +e-e#t. $. despite the application of the rules on interpretation of contracts and the circumstances surrounding it.)s ot m)+e.t4e sti/ul)tio is #o tr)ry to t4e i te tio o.t4e li)bility ot4e #ommo #)rrier i #)se +)m)(e is sust)i e+. Rules i I ter/ret)tio o. . I. What are the four =inds of defecti$e contracts? 1. Dow to determine the real intention of the parties? T4e #o tem/or) eous ) + subse0ue t )#ts o. =. T4e SC 4el+ t4)t it . T4is is #)lle+ i e5iste t #o tr)#ts. there is ambiguity as to which car is the ob<ect of the sale& What is the effect? T4e #o tr)#t is 3oi+ .ri(4ts s4)ll /re3)il.re)l est)te mort()(e s4o. Eay the defect of the contract be $oid and $oidable at the same time? No1 be#)use 3oi+ #o tr)#ts )re i e5iste t . I.4ile i 1=J% ) + 1=J11 it is ) subsi+i)ry reme+y.le)st tr) smissio o. there was no stereo& B demanded deli$ery of stereo& .4ile i Res#issible Co tr)#ts t4ere m)y or m)y ot be ) bre)#4. $oidable and unenforceable all at the same time? 7es be#)use t4e +e-e#ts +i--er +e/e +i ( o t4e st)tus ot4e #o tr)#t. T4is #o tr)#t is e--e#ti3e o. I Voi+ Co tr)#ts t4ere is o #o tr)#t to s/e)6 o-..4o #)use+ t4e )mbi(uity. Voi+ Co tr)#ts is o e t4)t 4)s o e--e#t )t )llB it #) be r)ti-ie+ or 3)li+)te+.n case of conflict between intention and the words or phrases which shall pre$ail? T4e re)l i te tio o. A ull)ble u less r)ti-ie+.)r()ri e1 t4e s4i//er . seller filed an action for reco$ery of purchase price& Will the action prosper? 7es. T4e bre)#4 u +er Art. /istinguish 2escission under Art& ) and 2escission under 2escissible Contracts? ot 1. A obliged himself to deli$er and transfer ownership o$er a specific car& /uring the negotiation B already saw the car with stereo& When the car was deli$ered.ESL 3s1 . E? . U +er 11&1 it is ) /ri #i/)l reme+y1 .4)t #o tr)#t .4ile res#issio u +er 1=J% ) + 1=J1 s4oul+ be -ile+ .1 but m)y be i 3)li+)te+.r)ti-ie+1 t4e #o tr)#t is #le) se+ o. be#)use t4ere is o /resum/tio t4)t /)yme t is m)+e. Be#)use t4e term +e-e#ti3e #o tr)#t me) t4)t t4ere is ) e5isti ( #o tr)#t.ill be e title+ to t4e stereo be#)use i o erous #o tr)#ts t4e (re)test re#i/ro#ity o.f the terms of the contract is clear.ill be i ter/rete+ )()i st t4e s4i//er .)s s4o. By t4e #o tem/or) eous ) + subse0ue t )#ts ot4e /)rties1 it . I.Co tr)#tsC .) e#o omi# +)m)(e or lesio . =.n a sale of one of the cars.)s sti/ul)te+ )s to t4e e5te t o.4o /re/)re+ t4e +o#ume t. 11&1 s4oul+ be ) subst) ti)l bre)#4 or -u +)me t)l bre)#4.4e it is )bsolutely im/ossible to settle t4e +oubt. T4e /res#ri/ti3e /erio+ u +er 11&1 is 1 ye)rs .4o /re/)re+ t4e bill ol)+i (1 it . I t4e #)se o. the seller.ill ot bi + t4e /)rties. 2ules in the interpretation of words and phrases shall not fa$or who? T4e /)rty . the literal meaning shall control? Not e#ess)rily. Res#issible #o tr)#ts #) ot be r)ti-ie+ be#)use it 4)s o i 4ere t +e-e#t )s to t4e re0uisite. I.t4e /)rties1 t4e i te tio s4)ll /re3)il ) + t4e liter)l me) i ( . "e-e#ti3e Co tr)#ts . .)s e tere+ i to.f the claim of B a $alid claim? It +e/e +s o .t4e #o tr)#t. t4)t i +ee+ /)yme t .s defecti$e contracts a good classification under this title? No. ye)rs -rom t4e +)te o.

le+(e ) + )//ro3)l o. O erous #o tr)#ts EJ . What are some instances considered by the Court as badges of fraud? 1..t4e 3)lue o.)s rele)se+1 t4e titles . T4e ri(4t to res#i + )s /ro3i+e+ u +er Art. What other contracts declared by law to be rescissible? 1. T4e -)#t t4)t t4e #o si+er)tio o.ee -)t4er ) + so 1 .4om t4ey re/rese t su--er lesio by more t4) 1N. =. All ot4er #o tr)#ts s/e#i)lly +e#l)re+ by l).4is /ro/erty by ) +ebtor es/e#i)lly . Res#issible Co tr)#ts Dow may contracts be considered rescissible? Co tr)#ts m)y o ly be #o si+ere+ res#issible be#)use t4e l).Co tr)#ts e tere+ i to by t4e +ebtor .)s e tere+ i to t4e obli()tio )rose1 it is still i -r)u+ o. Eay a contract be considered rescissible e$en without badges of fraud? 7es1 i C 1. 1=J1'. Tr) s-er o.me)sure or lum/ sum /ri#e. D. NoteC E3e i..4e t4e )bo3e #ir#umst) #es )re /rese tB ?. 1.4e t4e l)tter #) ot i ) y m) er #olle#t t4e #l)ims +ue t4emB . +e#l)ri ( t4e #o tr)#t to be res#issible1 it is ot. Gr)tuitous #o tr)#ts .4e 4e +i+ ot reser3e su--i#ie t /ro/erty to /)y 4is +ebts be-ore +o )tio )re #o si+ere+ -r)u+ule t.)ll or e)rly )ll i.)s o /er-e#te+ lo) but t4ere .4i#4 )re e tere+ i to by (u)r+i) s ... E3i+e #e o.)s rele)se+ by t4e B) 61 t4e /erso +is/ose+ o.it4out 6 o. so /ro3i+es.t4e +ebtor .4ere ) /erso is su//ose+ to mort()(e 4is /ro/erty )s se#urity -or t4e lo) .4e t4e /ur/ose is re)lly to +e-r)u+ #re+itors.l)r(e i +ebte+ ess or #om/lete i sol3e #yB D.)s ).4i#4 #) eit4er be /resume+ or /ro3e B ) + .t4e l)tter su--er t4e lesio st)te+ i t4e /re#e+i ( umber.. T4ose u +ert)6e i -r)u+ o. $. T4e ri(4t to res#i + (i3e ) u /)i+ seller )s /ro3i+e+ -or i Art.t4ey 4)3e bee e tere+ i to by t4e +e-e +) ts .lo) . T4e #re+itors #) m) er.)bse tees1 i.)s e tere+ i to.)rr) ty )()i st 4i++e +e-e#ts u +er Art..4e t4e )(e t )#te+ i e5#ess o.e3er1 t4e e umer)tio u +er Art.t4e /ro/erty. T4ose )(ree+ u/o i t4e re/rese t)tio o.. 11J& i #)se o. $. I.re)l /ro/erty /er u it o.t4ere is o l). 1D$E.#re+itors .4e 4e is i sol3e t or (re)tly emb)r)sse+ -i ) #i)llyB E.4i#4 re-er to t4i (s u +er liti()tio i. T4e -)#t t4)t t4e tr) s-er is m)+e bet.ill )lre)+y be +eli3ere+ to t4e b) 6. <o. <ere t4e +ebtor o.t4e #o 3ey) #e is -i#titious or i )+e0u)teB $. T4ere must be ) i te tio to +e-r)u+ #re+itors. It m)y be /ro3e+ by /ro3i ( b)+(es o.)ut4ority ) + t4e =r+ /erso . .t4e liti() ts or #om/ete t 2u+i#i)l )ut4ority.)y ) 3oi+ #o tr)#t be r)ti-ie+> be-ore 7es1 u +er Art.)s )lre)+y -r)u+ o. T4ere must be ) /re-e5isti ( obli()tio )t t4e time it .)r+s .t4e lo) but be-ore t4e mo ey to be lo) e+ .-r)u+ or b)+ -)it4 o t4e /)rt o. T4e ri(4t to res#i + (i3e to ) 3e +ee i s)le o. =.-r)u+. T4ere .)re t4)t t4e )(e t )#te+ i e5#ess o)ut4ority.t4e t4i (s . T4e -)ilure o. 1J&J t4e /ri #i/)l #) r)ti-y t4e #o tr)#t )s . ot re#o3er t4eir #re+its i ) y ot4er .4ile it is /e +i ( )()i st 4imB =. A s)le o #re+it by ) i sol3e t +ebtorB .%& #) ot be r)ti-ie+ -or t4ey )re 3oi+ ) + i e5iste t -rom t4e be(i i (.t4e #o tr)#t . to be sub2e#t to res#issio !Art.t4e 3e +ee to t)6e e5#lusi3e /ossessio o. =. 1DE?.)ll t4e /ro/erty. $. Dow to pro$e fraud in 7contracts in fraud of creditors8? Cre+itor m)y /ro3e -r)u+ by i 3o6i ( t4e /resum/tio s /ro3i+e+ -or by l). What contracts are considered rescissible? 1.#re+itors . Viol)tio o. T4ose .+eterior)tio o. s t4e /ro/erty )t t4e time o.#re+itors1 e3e be-ore t4e mo ey .4e e3er t4e .n what instance may a contract be said to be in fraud of creditor e$en before the obligation arose? I ) #o tr)#t o.4i#4 )re t4e ob2e#t t4ereo-B $.t4e t4i ( +eli3ere+. A tr) s-er m)+e by ) +ebtor )-ter suit 4)s be(u ) + . o. T4e e5iste #e o. Dow to determine whether a contract is entered into in fraud of creditors? 1. T4ose .

1. . should there be a return of what has been recei$ed? Not e#ess)rily be#)use i. Because there was lesion of ">I.ill ot /ros/er. ye)rs -rom t4e time t4e (u)r+i) s4i/ #e)sesB E& . Because there was lesion of ">I. .it is m)+e . O ly t4e i #om/ete t /)rty m)y )3)il ot4is reme+y.s)le .)bse tees1 . $. .=1 1D?11 1D??'.1$1 1. there is an effect of a $oid contract? It #) /ros/er1 t4ere is ) ri(4t to re#o3er i #)se t4e /)rties )re i /)r +eli#to !Art. Who are the persons who can bring the action for rescission? 1.t4e t4i ( . /oes it matter whether the debtor was aware of the order? It +oes ot m)ter. T4e +e#isio or )tt)#4me t 4)s bee issue+. Ge er)l Rule Wit4i . NoteC E3e i.t4e i 2ure+ /)rty =. or e3e .4i#4 )re s/e#i)lly +e#l)re+ by l). and the debt is >!!=.bot4 /ro/erties is ot re0uire+ be#)use t4e restitutio m)y o ly be to t4e e5te t to re#o3er +)m)(es #)use+.#re+itors s4oul+ be #o #lusi3e be#)use +ebts s4oul+ be s)tis-ie+ -irst be-ore ) y (r)tuitous tr) s)#tio s s4oul+ be m)+e by t4e +ebtor.rit o)tt)#4me t 4)s bee issue+.f so.e+.111 1.it4 res/e#t to +o )tio s1 t4e -r)u+ o.) 3)li+ #o tr)#t but o e o. T4ere is ri(4t to re#o3er be#)use t4e l).)tt)#4me t is ot yet -i )l ) + t4e e5e#utor $ +)ys )-ter t4e issu) #e +is/ose+ o. I #ert)i #o tr)#ts o. It is ot ) e--e#t o.) ot4er . so /ro3i+es. t4e 4eirs o.)+e by /erso )()i st . Who may a$ail of the remedy of annulment of a $oidable contract? O ly t4ose /ri #i/)lly ) + subsi+i)rily obli(e+ #) be ) /)rty. ye)rs -rom t4e time t4e +omi#ile is 6 o.it1 t4e /resum/tio .)ll le()l reme+ies.t4e /)rties is INCA@ABLE O: GIVING CONSENT1 or CONSENT IS VITIATE" by mist)6e1 3iole #e1 i timi+)tio 1 u +ue i -lue #e or -r)u+. is there a presumption that the donation is in fraud of creditors? Not e#ess)rily be#)use A m)y 4)3e reser3e+ su--i#ie t /ro/erty to /)y 4is +ebts.t4e #o tr)#t is ot )llo.)+e by ) /erso )()i st . It is 3)li+ i. Eay a %rd party who is subsidiarily obliged ha$e the contract annulled? A )#tio -or ) ulme t by =r+ /erso m)y be )llo. b. Gu)r+i) s1 (u)r) tors or /le+(ors )re subsi+i)rily li)ble1 t4ey . to t4e #ourt +)m)(es t4)t 4e m)y i #ur i.e+ it4)t /erso #) s4o. t4e #re+itors i.it4i .1 1. is ot e#ess)ry t4)t t4e or+er be#omes -i )l.). T4e #)/)#it)te+ /erso #) ot i 3o6e t4e i #)/)#ity ot4e ot4er /)rty.4o +i+ ot )#t i b)+ -)it41 res#issio . 1D.+eli3ery !Arts.1E'.4i#4 /ossess )ll t4e esse ti)l re0uisites o. U e -or#e)ble Co tr)#ts What is the prescripti$e period for rescission? A.ill be be e-ite+ i) ulle+ ) + /re2u+i#e+ i. Eay a %rd person pay for the damage or indebtedness of the debtor who is the seller in fraud of creditors? No.it4 2u+i#i)l )ut4ority. I #)se o. ye)rs -rom t4e +)te it .wo parcels of land are alienated in fraud of creditors in one contract.f there is rescission. T4e +e#isio or )tt)#4me t ee+ ot re-er to t4e /ro/erty )lie )te+. is it rescissible? Not e#ess)rily. 1.t4e or+er o.4i#4 is t4e ob2e#t ot4e #o tr)#t is le()lly i t4e /ossessio o.4)tsoe3er. I.#o tr)#ts. Res#issio is merely subsi+i)ry ) + t4ere must be /rior e54)ustio o. to be res#issible1 t4e /erio+ is E mos. An action to reco$er from a $oid contract.t4e (u)r+i) is t4e buyer. B. Voi+)ble Co tr)#ts What are $oidable contracts? T4ose .it4i . may the contract be rescinded? T4e #o tr)#t m)y be res#i +e+ by t4e restitutio o. is rescission a remedy? No be#)use t4ere )re re0uireme ts -or res#issio to /ros/er. +)ys #ou te+ -rom t4e +)y o. Voi+ #o tr)#ts /ro+u#es o le()l e--e#t . It is 3oi+ i. t4e i 2ure+ /)rty $.ot yet -i )l.oul+ still )rise.ot ) ulle+. .t4e /erso is u +er (u)r+i) s4i/1 .4om some 2u+(me t 4)s bee re +ere+ e3e i.)s e tere+ i toC 1. Are the presumptions conclusi$e or disputable? T4e /resum/tio s )re merely +is/ut)ble ) + t4e +ebtor #) /ro3e (oo+ -)it4. /o $oid contracts produces no legal effect? It A donated a property worth >E to X. T4e #re+itor #) o lo (er res#i +. can it prosper? .4om some .t4e tr) s)#tio is -r)u+ule t . But .

re)l /ro/erty is m)+e1 i.riti (1 it ?% .(oo+s1 #4)ttels or t4i (s i )#tio 1 )t ) /ri#e ot less t4) @D%%1 u less t4e buyer )##e/t ) + re#ei3e /)rt o.)(e #y1 or ) y #o tr)#t -or t4)t m)tter m)y be #o3ere+ by t4e St)tute o. =.oul+ e ter i to #o tr)#ts . U +er Art 1. T4is .it4i 1 ye)r ) + it is ot i .it4i 1 ye)r.riti (. 1??= .4e ) s)le is m)+e by )u#tio ) + e try is m)+e by t4e )u#tio eer i 4is s)les boo6. 1??1 .4ere bot4 /)rties )re i #)/)#it)te+B $. Co tr)#ts .t4ere is ) /ro/er ob2e#tio t4ere is ob3iously o r)ti-i#)tio .4ere it /ro3i+es t4)t .4i#4 re0uire to 4)3e ) i 3e tory o. What is the purpose of the law in re0uiring a contract to be in writing if it is to be performed within year.riti (1 or ) se#o +)ry e3i+e #e o. Si #e it is ot i .) ot4er but 4e +oes ot 4)3e t4e )ut4ority o.ers.it4 t4e St)tute o.its #o te tsC ).er o. It . 1J?J e tere+ i to by ) )(e t .) ot4er.) i terest t4erei B -.f both parties are incapacitated and one of the parties ratified. T4ere is o +eb)te to t4e -)#t t4)t t4e /ro3isio u +er ARt.oul+ m)6e t4e #o tr)#t o. A )(reeme t t4)t by its terms is ot to be /er-orme+ .su#4 immo3)ble /ro/erty1 to be si( e+ by )ll t4e #o tr)#ti ( /)rties.oul+ tell t4)t .:r)u+s. A s/e#i)l /romise to ) s.4e or)l e3i+e #e is /rese te+ to /ro3e t4e e5iste #e o. An oral partnership is $alid? True1 e3e i.Attor ey.o /ro3isio s t4)t .(i3i ( #o se t to ) #o tr)#t.oul+ be u e -or#e)ble.t4em1 o. re0uires is t4)t t4e /)rt ers4i/ itsel.t4e /ur#4)sers ) + /erso s o . W4)t t4e l).it4out t4e . A )(reeme t m)+e i #o si+er)tio o. what is the status of the contract? Voi+)ble be#)use by t4e o ly o e /)rty is i #)/)#it)te+. What contracts are considered as unenforceable contracts? 1. T4us ) #o tr)#t -or /ie#e o.su#4 #o tr)#t1 is ot to be /er-orme+ .i ( #)ses ) )(reeme t 4ere)-ter m)+e s4)ll be u e -or#e)ble by )#tio 1 u less t4e s)me1 or some ote or memor) +um t4ereo-1 be i .f a person entered into a contract in representation of another but does not ha$e the authority of that person.4o 4)s bee (i3e o )ut4ority or le()l re/rese t)tio 1 or . 5ral promise of guarantee is $alid? A or)l (u)r) tee is )l. A )(reeme t -or t4e s)le o.s)le1 /ri#e1 )mes o.)s /ro3i+e+ t4)t ) y )(reeme t u +er its terms is ot to be /er-orme+ . 1. No.t4e re)l /ro/erty1 t4)t .t4e /)rties #o tribute+ ) immo3)ble /ro/erty. W4)t is 3oi+ is .T4ese #o tr)#ts #) ot be e -or#e+ t4rou(4 #ourt )#tio u less r)ti-ie+.4e t4ere is o i 3e tory o.4ose )##ou t t4e s)le is m)+e1 it is ) su--i#ie t memor) +umB e. .riti ( . or by t4e #ourt'1 e3e i. )t t4e time o. Co tr)#ts e tere+ i to u +er 1.4e t4ere is -)ilure to /ro/erly ob2e#t1 . T4ose e tere+ i to i t4e )me o. Co tr)#ts e umer)te+ u +er Art.4ere it /ro3i+es t4)t .ot i ) /ubli# i strume t1 it is 3oi+.ot i . =.%= more /ro/erly 6 o.4o .s4oul+ be i .su#4 (oo+s ) + #4)ttels1 or t4e e3i+e #es or some o.:r)u+s )s set -ort4 i t4is umber.-r)u+s1 ) s/e#i)l /romise to ) s. I t4e -ollo.4ere bot4 /)rties )re i #)/)ble o.%=> T4e -ollo. W4)t )re t4e u e -or#e)ble #o tr)#ts u +er Art.:r)u+s . I rel)tio to Art.riti (1 ) + subs#ribe+ by t4e /)rty #4)r(e+1 or by 4is )(e tB e3i+e #e1 t4ere-ore1 o. O e 6i + o.4e e3er t4e #o tr)#t o/)rt ers4i/ is e tere+ ) + ) #o tributio o.4ere i t4ese t.4ere immo3)ble /ro/erty or re)l ri(4ts )re #o tribute+ t4ereto1 ) /ubli# i strume t s4)ll be e#ess)ry.4o 4)s )#te+ beyo + 4is /o.t4)t /erso .riti (1 .) i 3e tory is ot m)+e1 t4e #o tr)#t o.)y e tere+ i to by ) =r+ /erso .. ) )(reeme t -or t4e le)si ( -or ) lo (er /erio+ t4) 1 ye)r1 or -or t4e s)le o.ill be u e -or#e)ble i.%= it . I.) ot4er /erso by o e .oul+ -)ll u +er t4e st)tute o.i 3e tory is to oti-y t4ir+ /erso s ./)rt ers4i/ is 3oi+. T4ose t4)t +o ot #om/ly . T4e (u)r) tor 4ere is ot t4e /ri #i/)l +ebtor.it4out ) S/e#i)l @o. Co tr)#t e tere+ i to i re/rese t)tio o.) ot4erB #.:r)u+s iu +er t4e terms o.i ( #o tr)#ts )re u e -or#e)ble1 u less t4ey )re r)ti-ie+C 1.re)l /ro/erty or o. It is 3)li+1 t4e /ur/ose o.t4e )mou t ) + 6i + o/ro/erty sol+1 terms o.su#4 t4i (s i )#tio 1 or /)y )t t4e time some /)rt o./)rt ers4i/ 3oi+.t4e /ur#4)se mo eyB but . .m)rri)(e1 ot4er t4) mutu)l /romise to m)rryB +. $.t4e )(reeme t #) ot be re#ei3e+ .) #o tr)#t. )s t4e St)tute o. T4ose .t4e s)le1 o.or6 or #o tr)#t o.4e e3er ) immo3)ble /ro/erty or re)l ri(4ts is #o tribute+1 i.it4i ) ye)r -rom t4e m)6i ( t4ereo-B b. is the contract unenforceable? Not e#ess)rily be#)use su#4 /erso m)y 4)3e e tere+ i to ) #o tr)#t t4rou(4 le()l re/rese t)tio !)ut4oriAe+ by l). St)tute o.r)ti-i#)tio is .er -or t4e +ebt o.4e is ot )ut4oriAe+ by t4e /erso re/rese te+. A re/rese t)tio )s to t4e #re+it o.. .) t4ir+ /erso .o e o.it4 t4e /)rt ers4i/.s the 4tatute of (rauds applicable only in Contracts of 4ale andLor Aease? No.er -or t4e +ebt1 +e-)ult1 or mis#)rri)(e o. is it to pre$ent fraud from being committed? It is ot e#ess)rily to /re3e t -r)u+ -rom bei ( #ommitte+ but r)t4er be#)use t4)t e3e 4o est me m)y #ommit mist)6es.

.it4i o e ye)r.t4e #o tr)#t1 it is ot to be /er-orme+ . ?1 . changed his mind and refused to go through with the sale& .t4e sub2e#t o.-r)u+s. It merely re0uire t4)t it be i .t4e #o tr)#t.%=' <o. wort 1%!!. E3e i.)#tio /ert)i s to ) )#tio u +er ) mutu)l /romise to m)rry .t4e 3)lue o. T4e l).71 t4e t4e )#tio m)y /ros/er to /ro3e t4e e5iste #e o.oul+ be ) )#tio b)se+ o ) )(reeme t1 i #o si+er)tio o.t4e b)( is =D%%1 ) + 4e sol+ it merely -or @=D%1 it .oyota Corollas model )F) for "!!= pesos each& (inding the price to be $ery cheap and in order to be sure he gets of the unit ahead of the others.4i#4 is re0uire+ to be i . U +er t4e l). it is merely a $erbal contract.4i#4 re0uire t4)t t4e #o tr)#t be i . and the contract will in$ol$e a real property and the period is more than year& What is re0uired for this to be enforceable? It 4)s to be i . is it co$ered by the statute of frauds? Not e#ess)rily.) )#tio -or +)m)(es.4e u +er t4e terms o.ill ot be #o3ere+ by t4e st)tute o. the daughter refused to marry the son& . T4e /ri#e i s)le o. o s)les -ollo. that the son and the daughter will get married. As st)te+ u +er t4e -)#ts1 t4e #o tr)#t is ) s)le o.) immo3)ble /ro/erty )s lo ( )s it is i .f the contract of sale in$ol$es an immo$able property.t4is #o tr)#t. 1.su#4 =r+ /erso 4)3e )#tu)l 6 o.#o tr)#ts. C)b)(ui 3s.m)rri)(e ot4er t4) ) mutu)l /romise to m)rry.s the agreement $alid? Will the action by B against A for specific performance prosper? T4e )(reeme t is 3)li+ but t4is #) ot be e -or#e+ t4rou(4 #ourt )#tio be#)use t4e -)#ts i 3ol3e ) /)r#el ol) + .riti (.le+(e o.7.riti ( to be ) 3)li+ ) + bi +i ( #o tr)#t.t4e #o tr)#t1 ) + t4ere is o /ro/er ob2e#tio o t4e /)rt o. U +er t4e l).hey spent '!! pesos& Dowe$er. A contract of sale in$ol$ing a mo$able property.(u)r) ty1 it #) ot be ) 3)li+ ) + bi +i ( #o tr)#t1 it . X came across an ad$ertisement in the Eanila /aily Bulletin about the rush sale of three slightly used .1 A )(reeme t m)+e i #o si+er)tio o.er o.oul+ be ) 3)li+ ) + bi +i ( #o tr)#t bet.e3er1 )s to t4e so 1 t4e #)use o.immo3)ble is irrele3) t. !Art.t4e st)tute o-r)u+ /ert)i i ( to le)se #o tr)#ts.) mo3)ble /ro/erty 3)lue+ more t4) D%% /esos1 4e #e #o3ere+ by t4e St)tute o:r)u+s .riti (1 it .m)rri)(e.-r)u+s it s4oul+ be i . ) )(reeme t -or le)si ( -or ) lo (er /erio+ t4) o e ye)r1 must be i . .ill ot /ros/er is t4ere is ) /ro/er ob2e#tio o t4e /)rt o. )F)& 5n the said date.n a contract of lease entered into by an agent. I. 1.f A sold a bag to B.) mutu)l /romise to m)rry is ot )#tio )ble1 but t4e m) er by . and it is not in writing.-r)u+s. T4ere-ore1 u +er t4e st)tute o.riti ( ) + t4e )(e t s4oul+ 4)3e ) s/e#i)l /o.ill ot bi + =r+ /erso s1 be#)use ) /ri3)te i strume t #) ot be re(istere+ e5#e/t i. I t4is #)se t4ere is o ly ) 3erb)l #o tr)#t.he father and the son filed an action for damages against the father and the daughter& Will the action prosper? As to t4e #)use o.he father and his son had a $erbal agreement with another father with his daughter. Y did not deli$er the unit& X brings an action to compel Y to deli$er the unit& Will such action prosper? T4is )#tio . /oes the law re0uire that for the statute of fraud to apply it had to be in a public instrument? No. T4e )#tio s4oul+ be +ismisse+. !Art.ill be u e -or#e)ble u +er Art.riti ( to be e -or#e)ble /ert)i s to ) re)l /ro/erty or ) i terest t4erei . it will be unenforceable? I s)le o.t4e le)se is ) /erso )l /ro/erty1 t4e it #) ot be sub2e#t to t4e /ro3isio o. NoteC A mere bre)#4 o.4i#4 is ot #o3ere+ by t4e st)tute o. X immediately phoned the ad$ertiser and placed an order for car& Y accepted the order and promised to deli$er the ordered unit on Guly >. 1. Ro5illo . t4e /ri #i/le t4)t lesio +oes ot )--e#t t4e 3)li+ity o. A and B entered into a $erbal contract whereby A agreed to B to sell his only parcel of land for "!= pesos& B agreed to buy the land on the aforementioned price& B went to the ban= to withdraw the money to be paid to A and immediately returned A for the consummation of the contract& A howe$er. but the father and the son will cause the repair of the house of the father and the daughter& 1ursuant to this agreement the father and the son had the house of the father and the daughter repaired& .4i#4 t4e bre)#4 o/romise to m)rry m)y be t4e b)sis o. . would that be co$ered by the statute of frauds? Not e#ess)rily.or)l e3i+e #e is /rese te+ to /ro3e t4e e5iste #e o. which bag he purchased % days ago for %>!! but he sold it to a friend today and it is not in writing.ee t4e /)rties.riti (1 si #e t4is is merely ) 3erb)l )(reeme t1 t4)t )(reeme t is u e -or#e)ble.)ttor ey.%=. /oes it matter if the purchase price of the immo$able property is only %!! pesos? No. .n a contract of lease which is for a period of % years. But i.is merely ) or)l /romise o. howe$er. may that contract still be co$ered by the statute of frauds? 7es it m)y still be #o3ere+ .)#tio t4e -)t4er )s )()i st t4e -)t4er ) + t4e +)u(4ter1 t4is .%='.riti ( to be e -or#e)ble. But it . after the house of the father and the daughter repaired.

B 2ust . er )t t4e time o.t4e St)tute o:r)u+s. No +o#ume t)ry e3i+e #e is re0uire+ i rel)tio to /)rti)l ?$ . Where an e<ectment suit was filed and the plaintiff was about to testify as to the existence of a contract in relation to the land to pro$e his right to e$ict the occupant& .)s o me tio o+eli3ery. Alt.)s o /)yme t. T4e buyer )lso #o stru#te+ ) buil+i (1 more or less /erm) e t i #4)r)#ter. . the doctrine of part performance shall not apply. t4e mo ey ) + retur e+ to A. and the plaintiff would want to present a witness who would testify without any document at hand& .4y ) /erso #) i 3o6e t4e St)tute o.:r)u+s 4)+ t4ere bee /er-orm) #e o. 1.4i#4 is #o3ere+ to #l)im +)m)(es be#)use o. T4is i 3ol3es ) t4ir+ /erso . 1 But t4e ) s. -urt4er re0uires t4ere must 4)3e bee +eli3ery o. T4e b)sis o.t4e testimo y.)s t)6e out o.)s o me tio t4)t 7 /)i+ 8 1D%%. I. ers4i/ /)sses to 4is o.ill ot /ros/er. ers4i/ to )utom)ti#)lly /)ss to t4e buyer1 t4e mome t t4e seller )#0uires o.=.oul+ be1 )s su((este+ by t4e U@ L).n other words. and there is an ob<ection under the 4tatute of (rauds.A to ob2e#t to t4e e3i+e #e .f a contract is co$ered by the 4tatute of (rauds. A##+(.t4ere is o /ro/er ob2e#tio o t4e /)rt o. to @ro-essor Uribe1 u +er t4e -)#ts t4ere .e3er1 t4e )bo3e b)sis #) ot )lso )//ly be#)use -or Art.he sale was executed $erbally& 5ne year later A and B sold the entire land to X& .l) +1 )s 3erb)lly )(ree+ u/o buyer /)i+ t4e re)l /ro/erty t)5es.s the sale executed $erbally by X to Y./)rti)l -ul-illme t.4i#4 i 3ol3es ) /)r#el o.:r)u+s is ot )//li#)ble.er' An agreement or contract which in$ol$es a 2eal 1roperty is co$ered by the 4tatute of (rauds? Not e#ess)rily.:r)u+s .t4e /)rties.A .4e 4e t4ere)-ter )#0uire+ o. T4is )#tio m)y )lso /ros/er ot. !/ro/er ) s.) /)r#el o. :ul-illme t +oes ot e#ess)rily be rel)te+ to /)yme t or +eli3ery.t4e testimo y is to /ro3e /)rti)l -ul-illme t1 t4e t4e St)tute o. T4e buyer )lso 4)+ t4e /ro/erty sur3eye+.t4e #o tr)#t1 e3e i.it4 /)yme t or +eli3ery1 but o et4eless t4e S.:r)u+s.oul+ be )//li#)ble i.:r)u+s.it4+r). Alt.ise su#4 )#tio . . ers4i/ be#)use A ) + B sol+ t4e e tire l) + to 81 by o/er)tio o. <e #) o lo (er i 3o6e t4e St)tute o.:r)u+s1 or ) )#tio to #l)im +)m)(es b)se+ o ) u e -or#e)ble #o tr)#t.)s ot t4e o.t4e St)tute o. er ) + o ri(4t to sell1 4e must +eli3er t4e t4i ( to t4e buyer i or+er t4)t o. @)rti)l -ul-illme t m)y be /ro3e .4i#4 is Art. because the contract is co$ered by the 4tatute of (rauds? It +e/e +s o t4e /ur/ose o.1 o./)rti)l1 it /resu//oses t4ere 4)s bee ) #o tr)#t i t4e -irst /l)#e. T4e re)so .o. Alt. .=.8 .T4e )#tio -or s/e#i-i# /er-orm) #e m)y /ros/er i.t4e e5iste #e o. @)rti)l -ul-illme t m)y /ert)i to ) y obli()tio )risi ( -rom ) 3erb)l #o tr)#t.t4e #o tr)#t1 ot4er. T4e )#tio .bre)#4 o.C.t4e )#tio -ile+ is to e -or#e ) #o tr)#t . which will bring the contract outside the co$erage of the 4tatute of (rauds? No True. = Si #e t4is ) s)le o. T4ese obli()tio s +oes ot 4)3e ) yt4i ( to +o .4olly e5e#utory t4us t4ere is o /roo. oral testimony is being presented. #) ot )ss)il ) u e -or#e)ble #o tr)#t.l).ee 8 ) + 7 bei ( ) 3erb)l s)le . T4ere . O its -)#e it )//e)rs to be #o3ere+ by t4e St)tute o.t4e obli()tio by o e o.it4st) +i ( t4e -)ilure o t4e /)rt o.l) +1 but t4)t )(reeme t is ot #o3ere+ by t4e St)tute o. A )(reeme t )s to t4e /)rtitio o.)s ot ) )#tio to e -or#e ) u e -or#e)ble #o tr)#t1 or ) )#tio #o3ere+ by t4e St)tute o.t4e /ur/ose o. to @ro-essor Uribe 4o.4e B o--ere+ 4is e3i+e #e to /ro3e t4e e5iste #e o. to )//ly t4e l).t4e obli()tio to /)y. rule+ t4)t be#)use o/)rti)l -ul-illme t o. ers4i/ o3er t4e t4i (.:r)u+s.. 1. Ce ter1 t4e s)le is 3)li+ ) + bi +i ( be#)use o.er .t4e #o tr)#t. It4ere 4)+ bee /er-orm) #e )lre)+y o. :or e5)m/le i ) #)se +e#i+e+ by t4e Su/reme Court i 3ol3i ( ) s)le o.n an oral contract which by its terms is not to be performed within year from the execution thereof.e t to t4e B) 6 ) + .4e B r)ises t4e +e-e se o. 5ne of the contracting parties already complied within the year with the obligation imposed upon him by said contract& Can the other party a$oid fulfillment of those incumbent upon him by in$o=ing the 4tatute of (rauds? No.) immo3)ble /ro/erty ) + t4is is ) 3erb)l s)le1 t4ere bei ( o /)rti)l -ul-illme t o. A t4ir+ /erso u +er t4e l).t4e t4i ( by t4e seller to t4e buyer1 e3e i.) /)r#el o.4olly by or)l testimo y.t4e obli()tio s )risi ( -rom t4)t #o tr)#t1 t4e #o tr)#t . U +er t4e -)#ts1 t4ere .t4)t #o tr)#t.:r)u+s is be#)use t4e #o tr)#t is still . buyer !7'.t4e s)le1 .)s ot t4e o.he lawyer of the defendant in$o=ed the 4tatute of (rauds& 4hould the <udge sustain the ob<ection of the defendant? No. Su#4 -)#t +oes ot /ro3e /)rti)l /er-orm) #e1 but merely ) )#t /relimi )ry to t4e -ul-illme t o.$ E3e i.:r)u+s. <o. does it necessarily mean that the <udge should sustain the ob<ection..f there is no partial payment or no partial deli$ery. A##+(. 5ne half of a parcel of land belonging to A and B was sold by X to Y for the amount of >!!& .t4e /)yme t1 ) + t4)t too6 t4e #o tr)#t outsi+e t4e o/er)tio o. <e o ly /l) e+ to /)y.l) +. T4e St)tute o.t4e seller .) y obli()tio s )risi ( -rom t4is #o tr)#t1 t4is is u e -or#e)ble u +er t4e St)tute o. $alid and binding? T4e s)le bet.e3er1 u +er t4e -)#ts t4ere is o /)rti)l -ul-illme t.

it4i .4ose 2uris+i#tio or territory t4ey e5er#ise t4eir res/e#ti3e -u #tio sB t4is /ro4ibitio i #lu+es t4e )#t o. T4e (u)r+i) 1 t4e /ro/erty o. !Art.4i#4 t4e /)rties )#tu)lly e tere+ i to.) #o tr)#t is i e5iste t1 4o.)s i -)#t /)rti)l -ul-illme t. . I ot4er . one of the parties deli$ered a sum of money or a thing to the other party..t4ree !=' . @ubli# o--i#ers ) + em/loyees1 t4e /ro/erty o.e5iste #e. .b)se o t4e testimo y t4)t i +ee+ t4ere . A y ot4ers s/e#i)lly +is0u)li-ie+ by l).t4e #o tr)#t #) ot be )s#ert)i e+B ?.4ose ob2e#t is outsi+e t4e #ommer#e o.t4e t4i ( is ot yet i e5iste #e )s lo ( )s it 4)s t4e /ote ti)lity o.4ere t4e i te tio o.-ul-illme t.4ose #)use or ob2e#t +i+ ot e5ist )t t4e time o..4)tsoe3er. 1.yers1 .or)l e3i+e #e )t t4e /ro/er time.4)tsoe3er t)6e /)rt i t4e s)leB D.4ose )+mi istr)tio or s)le m)y 4)3e bee i truste+ to t4em1 u less t4e #o se t o. T4ose .me B D.:r)u+s )--e#ts t4e )+missibility o.it4 t4e )+mi istr)tio o2usti#e1 t4e /ro/erty ) + ri(4ts i liti()tio or le3ie+ u/o ) e5e#utio be-ore t4e #ourt .4)tsoe3er.:r)u+s1 t4e testimo y m)y ot e3e be )llo. Are relati$ely simulated contracts $oid? T4e rel)ti3ely simul)te+ #o tr)#t is 3oi+ but t4ey .e+ u +er t4is ob2e#tio .it4 u l).. $. I. m)y be ri(4t i ) #o tr)#t o. U +er Art.l).it esses . Voi+ Co tr)#ts or I e5iste t Co tr)#ts What contracts are $oid or inexistent from the beginning? 1.it4 res/e#t to t4e /ro/erty ) + ri(4ts . O t4e ot4er 4) + t4e St)tute o.) #o tr)#t is ) ille()l #o tr)#t1 me) i ( t4e ob2e#t or t4e #)use is #o tr)ry to l). T4ose e5/ressly /ro4ibite+ or +e#l)re+ 3oi+ by l). <e #e1 t4e 2u+(e s4oul+ ot sust)i t4e ob2e#tio .ill e3er /ro/er be#)use t4ere is ot4i ( to be e -or#e+.t4e St)te or o.&1 . T4e #ourt s4oul+ ot )utom)ti#)lly #o #lu+e t4)t t4ere .4ere t4e #o tr)#t o.t4e e3i+e #e. T4e St)tute o.) y sub+i3isio t4ereo-1 or o. . It4ere .4o1 i ) y m) er .he cause or ob<ect of the contract need not exist as long as such cause has the potentiality of existence? :)lse. 1.4o m)y be u +er 4is (u)r+i) s4i/B $.4ose #)use1 ob2e#t or /ur/ose is #o tr)ry to l).4i#4 )re )bsolutely simul)te+ or -i#titiousB =. A(e ts1 t4e /ro/erty . ?= .4i#4 t4ey m)y t)6e /)rt by 3irtue ot4eir /ro-essio B E.ill be o sub2e#t m)tter1 it l)#6s o e o. and pursuant to that contract. 1=D$1 Co tr)#ts . #) it /ro+u#e ) y le()l e--e#t. T4e #ourt s4oul+ le)3e t4e /)rties )s t4ey )re1 ) + o )i+ s4oul+ be (i3e to eit4er /)rty to t4is #o tr)#t.f the contract is $oid. T4e #ourt s4oul+ s)tis-y itsel. T4ose .) #o tr)#t.4i#4 m)y be t4e ob2e#t o) y liti()tio i . e+ ) + #o trolle+ #or/or)tio 1 or i stitutio 1 t4e )+mi istr)tio o. E5e#utors ) + )+mi istr)tors1 t4e /ro/erty o.i /)ri +eli#to.it4out #)use1 or . may he be able to reco$er what he deli$ered to the other party? Or+i )rily i. What other contracts expressly prohibited or declared $oid by law? T4e -ollo.s)le m)y be 3)li+ e3e i.oreo3er1 e3e i. :or -)ilure to ob2e#t to t4e /rese t)tio o.1 mor)ls1 (oo+ #ustoms1 /ubli# or+er or /ubli# /oli#y1 4e #) o lo (er +eli3er u +er t4e /ri #i/le o.4i#4 4)s bee i truste+ to t4emB t4is /ro3isio s4)ll )//ly to 2u+(es ) + (o3er me t e5/erts . A y )#tio to e -or#e ) 3oi+ #o tr)#t .1 mor)ls1 (oo+ #ustoms1 /ubli# or+er or /ubli# /oli#yB $. T4ose . T4e ob2e#t is ot ) t4i (1 t4e ob2e#t is t4e sub2e#t m)tter o.f an action is filed to enforce a $oid contract.or+s i. !Art.oul+ testi-y i #ourt )s to /)rti)l -ul-illme t. It (oes i to t4e )+missibility o. o s)les'. will the action prosper? No. T4ose .) ot4erC 1.t4e /)rties rel)ti3e to t4e /ri #i/)l ob2e#t o.i ( /erso s #) ot )#0uire by /ur#4)se1 e3e )t /ubli# or 2u+i#i)l )u#tio 1 eit4er i /erso or t4rou(4 t4e me+i)tio o. Se#o +ly1 ) 3oi+ #o tr)#t is bei ( #)te(oriAe+ )s i e5iste t.4i#4 #o tem/l)te ) im/ossible ser3i#eB E.:r)u+s +oes ot /ert)i to t4e .s)le1 . A $oid contract produces no legal effect whatsoe$er? True1 ) 3oi+ #o tr)#t /ro+u#es o le()l e--e#t .t4e /erso or /erso .t4e #o tr)#t.t4e tr) s)#tio . By )##e/t) #e o.)s /)rti)l -ul-illme t.ei(4t o. Dow shall unenforceable contracts be ratified? 1.t4e /ri #i/)l 4)3e bee (i3e B =. But i #o tr)#ts1 t4ere 4)s to be ) #)use or ob2e#t )t t4e time o.t4e tr) s)#tio B . T4ose .ill be bou + to t4e #o tr)#t or tr) s)#tio .)#0uiri ( by )ssi( me t ) + s4)ll )//ly to l).e3i+e #e.t4e be e-its u +er su#4 #o tr)#t.t4e est)te u +er )+mi istr)tio B .t4e #o tr)#t is #o3ere+ by t4e St)tute o. T4ose .) y (o3er me t o. Su#4 3ie.%&'. Husti#es1 2u+(es1 /rose#uti ( )ttor eys1 #ler6s osu/erior ) + i -erior #ourts1 ) + ot4er o--i#ers ) + em/loyees #o e#te+ .t4e e3i+e #e. .-ul #)use1 /ro+u#e o e--e#t .t4e esse ti)l re0uisite o.

ul)ble #o tr)#ts )re What defense could ha$e been proper by B under the facts? T4e /ro/er +e-e se s4oul+ 4)3e bee l)#4es.)s i #)/)#it)te+ )t t4e time t4e #o tr)#t .<o.e+ to re#o3er . I t4is #)se )lmost .4e sell or )lie )te t4e /ro/erty . E an unwed mother ga$e her child for adoption to a childless couple.4)te3er .o e o.t4e /)rties to t4)t #o tr)#t1 t4)t /erso i .t4e /)rties to t4is ille()l #o tr)#t . ?.1 1.oul+ still 4)3e t4e ri(4t to re#o3er t4e /ro/erty )s t4e #o tr)#t is ) 3oi+ #o tr)#t ) + t4e i /)ri +eli#to rule is ot )//li#)ble u +er t4e -)#ts. the father was listed as father un=nown& .4e re/u+i)te+ t4e #o tr)#t be-ore t4e #o summ)tio o.oul+ 4)3e ot4i ( more to #ulti3)te 4imsel.t4e l) + u +er t4is l).e+ to re#o3er i/ubli# i terest . ul)ble I e5iste t #o tr)#ts )re 3oi+ be#)use o e o. . is ) 3oi+ s)le.it4i t4e D ye)r /ro4ibitory /erio+ is ) 3oi+ )lie )tio . A ul)ble #o tr)#ts is ) +e-e#ti3e #o tr)#t be#)use o. T4)t is . "es/ite t4e -)#t t4)t t4e #o tr)#t is ) ille()l #o tr)#t1 ) /)rty to su#4 #o tr)#t m)y be )llo. I e5iste t #o tr)#ts #) ot be r)ti-ie+B . and furthermore.4ile ) 3)li+ #o tr)#ts u til ) ulle+.)rr) ts . is i te +e+ or +esi( e+ to /rote#t o e o. <o.4y 4e .111 1.% ye)rs 4)+ el)/se+.1$ 1 1. the adoption proceedings commenced with re0uired publication& ( the father of the child appeared to oppose the adoption and to see= custody of the child& E sided with BC claiming that ( had abandoned her when he was pregnant declararing that she wanted BC to =eep the child& Could BC reco$er the twenty thousand 7"!. the Bureau of Aands issued a homestead patent to A& .1D ) + 1. that the heirs of A cannot reco$er the homestead from him because their action has prescribed.1. 1. T4e (r) tee1 t4e seller sle/t o 4is ri(4ts1 ) + t4ere-ore 4e ) + 4is 4eirs m)y ot re#o3er1 u +er t4e /ri #i/le o. I.oul+ so /ro3i+e its ullity m)y re#o3er . What is the distinction between an inexistent contract and annullable contract? I e5iste t )re 3oi+ #o tr)#t .4ose -)3or t4e l).4e ) l).e3er1 i to t4e se#o + +e-e se t4)t t4e 4eirs #) ot re#o3er u +er t4e i /)ri +eli#to rule1 )s /ro3i+e+ i Art.t4e #o tr)#t is ille()l ) + t4ere-ore 3oi+1 still 4e s4oul+ be )llo. E--e#ti3ely1 .4)t 4e +eli3ere+ i. T4e #o tr)#t bei ( ) ille()l #o tr)#t 1 t4e i /)ri +eli#to rule . BC for which the latter paid "!=& .4)t 4e +eli3ere+ /ursu) t to t4e 3oi+ #o tr)#t.e+ to re#o3er . +e#l)res ) #o tr)#t ull ) + 3oi+ but t4ere is o i 4ere t ille()lity ! ot ille()l /er se' i t4e #o tr)#t ) + t4e +e#l)r)tio o. T4ere-ore1 e3e i.hree 7%8 years later A sold the homestead to B& A died in ))! and his heirs filed an action to reco$er the homestead from B on the ground that the sale of A 7their father8 to B is $oid under sec& F of the 1ublic Aand Aaw& B contends howe$er.4ile ) #o tr)#ts #) be r)ti-ie+. A y )lie )tio o.oul+ be )//li#)ble ) + .4i#4 is ull ) + 3oi+ ) + ) )#tio to re#o3er -rom su#4 3oi+ #o tr)#t +oes ot /res#ribe.it4i = ye)rs -rom t4e (r) t u +er t4e @ubli# L) + L).t4e #o tr)#t or be-ore +)m)(e is #)use+ to ) t4ir+ /erso .wo years later after BC learned to lo$e the child as their own.1E.1E1 t4)t .n )>!. T4e e5#e/tio sC 1.l)#4es.it4i t4)t /erio+ 4e .ullity by l).1 mor)ls1 (oo+ #ustoms1 /ubli# or+er or /ubli# /oli#y. T4e /ro4ibitio u +er t4e @ubli# L) + L). . A was in pari delicto& /ecide& As to /res#ri/tio 1 it is ot ) (oo+ +e-e se be#)use t4e s)le m)+e .t4e esse ti)l eleme ts is l)#6i ( or m)ybe be#)use t4e #o tr)#t is #o tr)ry to l). A #o tr)#t . 1.)s +eli3ere+ by t4e /)rty to t4e ot4er m)y o lo (er be re#o3ere+1 )s t4e #ourt #) ot (i3e )i+ to eit4er /)rty to su#4 #o tr)#t.1 mor)ls1 (oo+ #ustoms1 /ubli# or+er or /ubli# /oli#y. $.4)t 4e sol+ to t4e ot4er /)rty.)s e tere+ i to1 4e m)y be )llo.4)t 4e +eli3ere+ to t4e ot4er /)rty.e3er1 u +er Art. sol+ t4e #4il+ to t4e s/ouses BC ) + ob3iously t4e s)le is ) 3oi+ s)le be#)use t4e ob2e#t is #o tr)ry to l).!!!8 they had paid for either ( or E? 2easons& No t4ey #) ot re#o3er.+e-e#t i t4e #o se t eit4er i #)/)#it)te+ or t4ere is 3iti)tio )s to 4is #o se t. is i te +e+ to /rote#t t4e (r) tee ) + 4is -)mily be#)use i.n the ci$il register of birth.) + 4is -)mily. . .

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