University of the Philippines College of Law

OUTLINE IN OBLIGATIONS AND CONT ACTS
Prof. Eduardo A. Labitag
Title I! O"ligations Chapter I General Provisions I. Concept A. Definition- Art. 1156 - criticism of definition B. Elements 1. Active Subject 2. !ssive Subject ". rest!tion or #bject $. Efficient c!use or juridic!l tie or vinculum juris C. Distinction Bet%een &!tur!l !nd Civil #bli'!tions 1. As to enforce!bilit( 2. As to b!sis II. Sources of #bli'!tions- Art. 115) A. *!%- Art. 115+ B. Contr!cts- Art. 115,- 1".5 C. /u!si-Contr!cts- Art.116.- 21$2 1. 0inds !. Negotiorum gestio- Art.21$$ b. Solutio indebiti- Art. 215$ c. #t1er 2u!si-contr!cts- Arts. 216$ to 21)5 D. Acts or omissions punis1ed b( l!%- Art. 1161 E. /u!si-Delicts- Art.1162- 21)6

1. Distinction bet%een 2u!si-delicts !nd crimes 2. *i!bilit( for f!ult of ot1ers- Art. 21+.3 Art. 21+- 21, of 4C ". Civil li!bilit( !risin' from crime- Art. 11613 5ules on Crimin!l rocedure 62...7- 5ule 111 Cases Barre#o v! Gar$ia% &' Phil! ()& *+,-./ 0en#o1a v! Arrieta% ,+ SC A ++' *+,&2/ PSBA v! CA% .)2 SC A &., *+,,./ A3a#ora v! CA +() SC A '+2 *+,44/ Air 5ran$e vs! Carras$oso +4 SC A +22 *+,((/ III. Cl!ssific!tion of #bli'!tions A. rim!r( Cl!ssific!tion 8nder t1e Civil Code 1. ure !nd Condition!l 6Arts. 11),-11,27 2. 9it1 ! period or term 6Arts. 11,"-11,+7 ". Altern!tive !nd 4!cult!tive 6Arts. 11,,-12.67 $. :oint !nd Solid!r( 6Arts. 12.)-12227 5. Divisible !nd Indivisible 6Arts. 122"-12257 6. 9it1 ! pen!l cl!use 6Arts. 1226-12".7 B. Second!r( Cl!ssific!tion 1. *e'!l 6Art. 115+73 Convention!l 6Art. 115,73 en!l 6Art. 11617 2. ". $. 5. 6. ). +. 5e!l 6to 'ive7 !nd erson!l 6to do or not to do7 Determin!te !nd ;eneric 6!s to subject m!tter of obli'!tion7 ositive 6to 'ive- to do7 !nd &e'!tive 6not to 'ive- not to do7 8nil!ter!l !nd Bil!ter!l Individu!l !nd Collective Accessor( !nd rincip!l As to object or prest!tion< Simple =ultiple Conjunctive Distributive Altern!tive 4!cult!tive ,. ossible !nd Impossible

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Chapter .! Nat6re an# Effe$ts of O"ligations I. 0inds of rest!tion A. #bli'!tion to 'ive 1. ! specific t1in' !. Duties of t1e obli'or i. >o deliver t1in' itself- Art. 12$$ ii. >o preserve t1in'- Art. 116" iii. >o deliver t1e !ccessions !nd !ccessories- Art. 1166 - distinction bet%een !ccession !nd !ccessor( iv. >o deliver t1e fruits- Art.116$ p!r. 1 2. ! 'eneric t1in'- Art. 12$6 B. #bli'!tion to do- Art.12$$ C. #bli'!tion not to do- Art. 12$$ II. Bre!c1 of #bli'!tion A. Concept 1. Distinction bet%een subst!nti!l !nd c!su!l?sli'1t bre!c1 Cases7 Song 5o v! 8awaiian Phils! -& Phil 4.+ *+,.4/ 9elar#e% et al v! CA '(+ SC A 2( *.))+/ Angeles% et al! vs! Urs6la Calasan1% et al!% G! ! No! L: -..4'% 0ar$h +4% +,42 Delta 0otor Corp! vs! Gen6ino ; CA% G! ! No! 22((2% 5e"r6ary 4% +,4, 9er3en ealty vs! CA% G +)+&(.% <6ly (% +,,'% ..SC A B. =odes of Bre!c1- Art.11). 1. 4r!ud 6dolo7 !. Concept i. dolo 611)17 vs. dolo incidente ii. dolo 611)17 vs. dolo causante Case

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=oo#ho6se v! 8alili% ,' Phil! 2.( *+,2'/ Ly#ia L! Geral#e1% vs! CA ; >enstar Travel Corporation% G! ! No! +)4.2'% 5e"r6ary .'% +,,-! b. &on%!iver- Art. 11)1 c. Effects 2. &e'li'ence- Art. 11)2 !. Concept- Art. 11)" i. culpa v. dolo ii. culpa aquiliana v. culpa contractual Cases G6tierre1 v! G6tierre1% 2( Phil! +&& *+,'./ 9as?6e1 v! Bor@a% &- Phil! 2() *+,--/ b. St!nd!rd of c!re re2uired- Art. 11)" p!r. 2 Cases De G6ia v! 0anila Ele$tri$ Co!% -) Phil! &)( *+,.)/ US v! Barias% .' Phil! -'- *+,+./ Sar3iento v! Sps! Ca"ri#o% -)+ SC A +.. *.))'/ Crisosto3o v! CA% -), SC A 2.4 *.))'/ c. Effects ". Del!( 6Mora7- Art. 116, !. Concept b. 0inds i. mora solvendi - re2uisites - ;ener!l 5ule< Creditor s1ould m!@e dem!nd before debtor incurs del!(- Art. 116, Case Cet6s Develop3ent Corp! v! CA % SC A &. *+,4,/ Aerospa$e Che3i$al In#6stries vs! CA% G No! +)4+.,% Septe3"er .'%+,,,% '+2 SC A Santos 9ent6ra 8o$or3a 5o6n#ation vs! Santos% G +2')(-% Nove3"er -% .))--+ SC A

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( *+.Art.see !lso 126+ Case 9#a! De 9illar6el v! 0anila 0otor Co!% In$!% +). Sec.Phil! . SC A 2-& *+.))-! EAceptions<. 2 2 .&)/ Telefast v! Castro% +24 SC A --2 *+.re2uisites Case Central BanA v! CA% +'.Art.1165 p!r.Dr! Daniel 9a1?6e1 .re2uisites .Art.)( Phil '-+/ III..% .22! ii. 5emedies #f Creditor in C!se of Bre!c1 A.(-/ 9i$toriano 0agat vs! 0e#ial#ea *. Action for perform!nce 1. compensatio morae .13 5#C ". SC A -( *+.'+/ E6se"io De La Cr61 vs! Apolonio Legaspi .24/ iii.44/ Arrieta v! NA IC% +) SC A &. Action for specific perform!nce in obli'!tion to 'ive ! specific t1in'. Case A"ella v! 5ran$is$o% 22 Phil! --& *+. Action for substituted perform!nce in obli'!tion to 'ive ! 'eneric t1in'.-! Nove3"er .42/ c. mora accipiendi . 1165 p!r. 2.. *+. 0a! L6isa 0! 9a1?6e1% vs! Ayala Corporation% G! ! No! +-. 116. Con$or#ia Sa3peroy% G! ! No! L:4). 1. Contr!vention of t1e tenor Cases Chave1 v! Gon1ales% '.&'-% Nove3"er +. Effects $.% +.

EAception B." B.% +.. 116) Cases7 Chave1 v! Gon1ales% supra Tang6ilig v! CA% .1. Act of =!n ( .+.&/ !. " 1.(( SC A &4 *+. 5e2uisites Case >he 8ong Cheng v! CA% '22 SC A &)+ *.Art. 11)$ A. Accion Pauliana. 11.1"+1 p!r.Art. Distinction bet%een accion pauliana !nd accion subrogatoria 2.Art. Accion Subrogatoria. 1652.16.1)2. C.in1erent ri'1ts of debtor3 Art.! C.Art.od 2.11).Art. Concept of 4ortuitous Event 1. #t1er Specific 5emedies. Action for d!m!'es. Subsidi!r( 5emedies of Creditor A.. 5e2uisites ". 116+ !.Art.))+/ 0aria Antonia Sig6an vs! osa Li3% Lin#e Li3% Ingri# Li3 an# Neil Li3% G! ! No! +'-(42% Nove3"er +. EAceptions..1+. ))2 B. Concept 2. 11)). Action for rescission.11.".. EAception $.11)) 1.Art. Action for undoin' in obli'!tion not to do. EAtin'uis1ment of *i!bilit( in C!se of Bre!c1 Due to 4ortuitous Event.2 IB.Art. Concept !. Action for substituted perform!nce or undoin' of poor %or@ in obli'!tion to do . Act of .

& *+.(/ Angel =areho6sing vs! Chel#ea .. D +5+3 D 16+5 B.1.).1165 p!r..SC A '2( *+. SC A Phil$o3sat vs! Glo"e Tele$o3% G No! +-&'. 22. see Chapter 4: Payment B. *+. ".44/ Bo"i#o v! CA% .&.B.4+ SC A + *+..(4/ 5irst 0etro Invest3ent vs! Este! Del Sol *Nov! +2% ...4( SC A . *+. resumptions in p!(ment of interests !nd inst!llments..-/ Cris3ina Gar3ents v! CA% ')..% +(+ SC A ''.$21.(&/ Dio?6ino v! La6reano% '' SC A (2 *+.-% 0ay . SC A/ BII. Centr!l B!n@ Circul!r $16 C. 8surious >r!ns!ctions. SC A 2.+ SC A .6vs.2& *+.4/ Se$6rity BanA v! TC 0aAati% .1.2.(/ Al3e#a v! CA% .5 liftin' t1e interest r!te ceilin'. *+. Sons v! CA% +-. Effect of concurrent f!ult Cases <6an NaApil .. 5e2uisites 1.4(/ ep6"li$ v! L61on Steve#oring Co!% . 11)5.7 Cases Eastern Shipping Lines v! CA% .(' SC A -2' *+. >r!nsmissibilit( of 5i'1ts.)% +4. 4ulfillment of #bli'!tions A./ >eng 86a Pro#6$ts v! CA% .Art.1$1".552.))-% -') SC A C.*+.2( SC A .' SC A +. EAtin'uis1ment of *i!bilit(3 EAceptions.. 11)$.&)/ A6stria v! CA% '. 11)+ Chapter '! Different >in#s of O"ligations & .SC A 2.))+% '(.&/ Ba$olo#:0ar$ia 0illing vs! CA an# Gat6slao% G ! No! 4++)): )+% 5e"! &% +.... 11)6 BIII.2% .'.Art.Art. =onet!r( Bo!rd Circul!r C ..&+/ NPC v! CA% G! ! No! L:-&'&.61 A.& *+.21$) BI..Art.1.SC A &4+ *+.

4! b.Art... As to c!use or ori'in.&/ Central Philippine University v! CA% ..Art. eriod?>erm Cases Gaite v! 5ona$ier% .(! . 11+) o36lo A! Coronel% et! al!% vs! CA an# Con$ep$ion D! Al$ara1 % G! ! No! +)'2&&% O$to"er &% +.Art.2/ Alfonso C6i@a#a% et al!% vs! CA% G! ! No! +. 1 B. *+.Art. Condition v.retro!ctive effect %1en condition is fulfilledArt.I.-( SC A 2++ *+. As to effect on obli'!tion. Suspensive 6condition precedent7 .. Concept b.effect if fulfillment of condition depends solel( on t1e %ill of t1e debtor 6Cf. 0inds of Conditions !. term7 . ure !nd Condition!l #bli'!tions A..(---% De$e3"er -% +./ 2.(+/ Gon1ales v! 8eirs of Tho3as% '+.debtorDs promise to p!( %1en 1e c!n is not ! condition!l obli'!tion. otest!tive . SC A 4') *+.Art. 11). 5esolutor( 6condition subse2uent7 Cases ParAs v! Provin$e of Tarla$% -. ure #bli'!tions. 11++ ii. Condition!l #bli'!tions. Phil! +-..ri'1ts of creditor !nd debtor before fulfillment of condition. Condition !. p!r.Art. 4 ..SC A 242 *+. 11+./ i. 11+2 i. 11+1 1.. 11+1 Gon1ales v! 8eirs of Tho3as% '+.SC A 242 *+.

.+..-! iii.Art..2) SC A c. Effect of loss or deterior!tion i.Phil! .effect Case o3an Catholi$ Ar$h of 0anila v! CA% +. %it1out debtorDs f!ult ... C!su!l Naga Telephone Co!% In$! *NATELCO/ vs! CA% G! ! No! +)&++.. 5ules in c!se of loss. . ositive./ 9irgilio o3ero vs! CA% G No! +)&.Art..5ran$is$o Lao Li3 vs! CA% G! ! No! 4&)-&% O$to"er '+% +../ 6stan P6lp an# Paper 0ills v! IAC% .SC A ((2 *+..))'! !.Phil! 4&2 *+..deterior!tion or improvement pendin' t1e 1!ppenin' of t1e condition. As to possibilit(.). 8eirs of Ti3oteo 0oreno vs! 0a$tan E Ce"6 International Airport A6thority% G! ! No! +2(.-% +. 11+" i. ossible ii. 11+$ ii.G2H7. 11+.Art. As to mode i.&'% O$to"er +2% .Edeterior!tionF !nd EimprovementF b. 11+5 ".+/ d.4 SC A ')) *+./ 8er3osa v! Longora% .2'/ Taylor v! Uy Tieng Piao% -' Phil! 4&' *+.&+ *+.' Phil! .2% .)&% Nove3"er . =e!nin' of ElossF 6Art.)! ii. *+./ S3ith Bell v! Sotelo 0atti% -.. 11+. =iAed Cases Os3eDa v! a3a% +.Art. Impossible . &e'!tive.% 5e"r6ary ...'% +.11.

/ Angeles v! Calasan1% +'2 SC A '. SC A Ernesto Deiparine vs! CA an# Trini#a#% G ! .&-4.Art. %1en fulfillment no lon'er possible3 effect b. 11+6 Case Taylor v! Uy Tieng Piao% supra <ose 9! 8errera vs! Leviste% G! ! No! 22&--% 5e"r6ary .11. Altern!tive remedies of injured p!rt( in c!se of bre!c1 !. !t t1e debtorDs eApense $.4. re2uisites ii.' *+./ Iringan v! CA% '(( SC A -+ *. Concept 2.' Gra$e ParA Engineering Co!% In$! vs! 0oha3a# Ali Di3aporo% G! ! No! L:.))+/ 9isayan Saw 0ill vs! CA an# < Tra#ing% G ! 4'42+% 0ar$h '% +.4% +.2/ Boysaw v! Interphil Pro3otions% +-4 SC A '(2 *+.&)/ De Er?6iaga v! CA% +&4 SC A + *+.4+! +) .2 1.1.+. Effect of improvement i....'% +... Action for 5escission i.'% . Action for 4ulfillment i. %it1 debtorDs f!ult c.((-'% April . 11.! Septe3"er +)% +.4&/ U!P! v! De Los Angeles% '2 SC A '(2 *+.42/ <a3es G! Ong v! CA% '+) SC A + *+.Art.42! II. Effect of prevention of t1e fulfillment of t1e condition b( t1e obli'or.ii.+ *+. 1o% m!de iii. b( n!ture or time ii. 5eciproc!l #bli'!tions. effects Cases Song 5o v! 8awaiian:Philippines% -& Phil! 4.

Art. Bolunt!r( b. Indefinite $. 11. As to definiteness !. #bli'!tion 9it1 ! eriod. Effect of p!(ment in !dv!nce.1)++3 Arts. " E.11. 5ules in c!se of loss. Concept 2. 11. 1$+$-+63 5A 6552 II. bot1 2. 0inds of eriod?>erm 1.deterior!tion or improvement before !rriv!l of periodArt. eriod?>erm vs. *e'!l c. 11. :udici!l C. creditor b. A.$. EApress b.) p!r.Art." p!r.5 &ote< Art." p!r. As to eApression !. As to effect !. Effects ++ .'% <6ne ')% +. 2 2. eriod or >erm 1.11+.". 5esolutor( 6!n diem7. Benefit of eriod 1.4)! 0argarita S6ria vs! IAC% G! ! No! &'4.11. Suspensive 6E die7.Art. 11. debtor c. Condition B. D.4&! See !lso Art. As to source !. Definite b.5elipe C! o?6e vs! Ni$anor Lap61% G! ! No! L: '. Implied ".Art. 4or %1ose benefit !.11+. 1)+6. 1 b.4++% 0ar$h '+% +.

12.-. 2. resumption.Art.(+% + SC A III.Art.". SC A +2+ *.. 91en debtor loses ri'1t to m!@e use of period.) Phil! '++ *+.2 to 12. Concept 2.)))/ $. Pon$e #e Leon v! Sy@6$o% .Art.6 1. C. Concept.+ 4. 91en Court =!( 4iA eriod. Altern!tive #bli'!tions A.5 4. 12. 4!cult!tive #bli'!tion. Effect of notice of c1oice D. .) 1..Art. Concept +. Effect of Substitution IB. 11.% A6g6st -% +. 12. condition7 Cases Araneta v! Philippine S6gar Estate Develop3ent Co!% .) SC A '') *+.Art.(&/ Central Philippine University v! CA% s6pra 5loren$io De6#or vs! <0 T6ason% G +'&(4% 0ay ')% +. 12.2+/ B6$e v! CA% ''.1 E.Art. :oint !nd Solid!r( #bli'!tions A.. eriod is implied eriod depends solel( on %ill of debtor 6Cf. B. 91en notice produces effect.11.6 Cases La$hi$a v! Araneta% -& OG No! ++% 2(. 5i'1t of c1oice. Distin'uis1ed from Altern!tive #bli'!tion ".11. Effect of loss or impossibilit( of one or !ll prest!tions.Art. 11. :oint #bli'!tions 1.Art.

=iAed c..$5.&4 *+.Art.Phil! . 8niform ii. *e'!l.+ !.12.Art. 5e2uisites b.Art.(% O$t +.% +&4 SC A Lafarge Ce3ent Phil vs! Continental Ce3ent% G +22+&'% Nove3"er .).1. EAtent of li!bilit( of debtor b.'% .4. Effects. EAtent of ri'1t of creditor c.compens!tion. 5e2uisites b.!.$3 Art. As to p!rties bound i.+ i.(% +.Art. 1. 5e!l b. Convention!l iii.).+(/ Bal#o3ero In$iong vs! CA et al% G .2& SC A CBC vs! CA% G 42'.21. 0inds !. !ssive iii. 12))7remission B. 9ords used to indic!te solid!r( obli'!tions 2.(-)2% <6ne . 12.12. 12. In c!se of nov!tion.effects Case Bn$ha6sti v! B6lo% '. 11.+ ". resumption. Active ii. 12.confusion 6Art.(% . Effects +' . B!ried?&on-uniform. Concept !. 1211 . Solid!r( #bli'!tions 1. As to source. As to uniformit( i. 9ords used to indic!te joint obli'!tions 2.15.Art. of 5 C ii.))-% --' SC A ".

1215 p!r. 12. 1221 Cases <a6$ian v! C6erol% '4 Phil! &+4 *+. solid!r( co-debtor .(/ $.confusionremission b( ! creditor.compens!tion.!. 1 ii. Solid!r( debtor in rel!tion to< i. solid!r( co-creditor?s . 1215 p!r. 1215 p!r. t1ose person!ll( belon'in' to t1e ot1er co-debtors b.ri'1t to dem!nd.Art.Art.Art.2 *+.)))/ +- . . >(pes i. common creditor .Art.-(& C6io3"ing v! CA% +4.Art. 1215..) .in c!se of fortuitous event. SC A '.121) p!r.confusionremission b( ! creditor.obli'!tion to perform.Art.!ssi'nment of ri'1ts not !llo%ed. 1 ii.in c!se of p!(ment b( ! co-debtor. t1ose derived from t1e n!ture of t1e obli'!tion ii. common debtor .122. Defenses !v!il!ble to ! solid!r( debtor !'!inst t1e creditor. 121" b.in c!se of nov!tion.121$.2& SC A 2&4 *+.confusionremission. 2 .Art.121..)/ In$iong v! CA% .prejudici!l !cts pro1ibited.compens!tion. 1222 !.Art.in c!se of nov!tion.compens!tion.Art.in c!se of nov!tion.1216. 1 . 1212 . defenses pert!inin' to 1is s1!re iv.+4/ 5C v! CA% O!G! No! (% p! .. Effects Cases Bn$ha6sti v! B6lo% supra Alipio v! CA% '-+ SC A --+ *. Solid!r( creditor in rel!tion to< i. 121)121+.Art. person!l defenses iii.

*e'!l. 1225 p!r. Concept !.see "oint !ndivisible #bligations 6.12"". 1225 p!r. 2 $. *i!bilit( for d!m!'es in c!se of bre!c1. 122$ B. 122". Indivisibilit( distin'uis1ed from solid!rit(. 1 b.C. 121. Distin'uis1ed from :oint #bli'!tions ii. :oint Indivisible #bli'!tions 1. 0inds !. Divisible !nd Indivisible #bli'!tions A. Convention!l. Effects.Art.12"" B. #f indivisibilit(. #bli'!tions %it1 ! en!l Cl!use +2 .Art.Art.Art. &!tur!l.Art. Concept i.Art. 1225 p!r. 1225 p!r. Distin'uis1ed from solid!r( obli'!tions 2. 1225 p!r. 1225 p!r.Art. 12. Distin'uis1ed from Solid!r( #bli'!tions 2.Art.Art.Art. 1 b. Divisibilit( !nd indivisibilit( in obli'!tions not to do. #f divisibilit(. " c. !. " 5. Indivisible #bli'!tions 1. Cess!tion of indivisibilit( BI. 122".Art.122$ . resumptions !. Divisible #bli'!tions 1. Effects. Effects. ".. " ". Concept 2.

Convention!l b. 2 D. 5ep!r!tor( C. 122) $. Concept 1.+% ..Art. 122) ".Art.) SC A 22& *+.% +. Dem!nd!bilit( of en!lt(. EAceptions.Art. EAception. As to effect !. unitive b. As to purpose !. 1226 +( .Art. 1226 Cases 0aAati Develop3ent Corp! v! E3pire Ins6ran$e Co!% . $. Complement!r( 2. EAception. 1226 !.Art. Effects of en!l Cl!use 1. *e'!l ".A.Art. As to source !.)+ SC A 2.(&/ Antonio Tan v! CA% '(& SC A 2&+ *. rincip!l vs. 5.Art. Subsidi!r( b. Substitute for indemnit( for d!m!'es !nd p!(ment of interest. Creditor c!nnot dem!nd bot1 perform!nce !nd pen!lt( !t t1e s!me timeArt. 122) !. 2. 0inds of en!l Cl!use 1. 1226 !.u!r!nt( B. Creditor c!nnot collect ot1er d!m!'es in !ddition to pen!lt(. 1226 p!r.Art. ". &ot eAempt debtor from perform!nce. EAceptions. Accessor( #bli'!tion Distin'uis1ed from Condition!l #bli'!tions Distin'uis1ed from Altern!tive #bli'!tions Distin'uis1ed from 4!cult!tive #bli'!tions Distin'uis1ed from . 122) !.))+/ Co6ntry BanAers Ins6ran$e vs! CA% G ! 42+(+% Sept .

12"6 p!r. 12".2G"H c. effect of inc!p!cit( +& .1$2) i.1 e.Art. 12".. t1ird person %1o does not intend to be reimbursed. effects. t1ird person %1o is !n interested p!rt( i. Concept. 12"2 B. .12"6 p!r. 2. B. in 'ener!l b. 12"+ f. 1". 12"1 A. E. t1ird person %1o is not !n interested p!rt( !nd %it1out @no%led'e or !'!inst t1e %ill of t1e debtor i. effects.Art.Art. 1 d. 122.12"). 1". 12"6 p!r. 5!tion!le Chapter -! EFting6ish3ent of O"ligations I. 4. &ullit( of rincip!l #bli'!tion or en!l Cl!use 1. !(ment or erform!nce *oss or Impossibilit( Condon!tion or 5emission Confusion or =er'er Compens!tion &ov!tion #t1er C!uses II.Art. in obli'!tion to 'ive. D. effects.Art.Art.Art. 4.2G2H.Art. 91en pen!lt( s1!ll be e2uit!bl( reduced.E. 91o c!n p!( !. 5e2uisites 1. Effects. 2. C. me!nin' of Einterested p!rt(F ii. =odes of EAtin'uis1ment. !(ment or erform!nce A..Art. t1ird person %1o is not !n interested p!rt( but %it1 consent of debtor i.

3 5.Art. 121$ 2. 12$+ EAceptions<.Art. 12$$ ii. inc!p!cit!ted person. b.&)/ St! Pa6l 5ire an# 0arine Ins6ran$e v! 0a$on#ray% &) SC A +. 12$6 iii.A.Art.56 $.Art. 12"$ +4 . %1en proof of benefit not re2uired. 12$1 p!r..Art. p!( mone(. 12$1 p!r. 91!t is to be p!id 6EIdentit(F7 !.'.. in 'ener!l. 12$. re2uisites ii.Art.ener!l 5ule< !rti!l p!(ment is not !llo%ed. $1.Art. in c!se of !ctive solid!rit(. "12$2 d.4/ PAL vs! CA +4+ SC A 22& *+. 2 i.Art.)/ c.&(/ Papa v! A!9! 9alen$ia% et!al% .Art. 12$+ b.Art. 1 i. 52. subst!nti!l perform!nce in 'ood f!it1. p!(ment of interest.A.Art.. 1. re2uisites c.SC A (-' *+. >o %1om p!(ment m!( be m!de !. 12"" . in obli'!tions to< i. in 'ener!l.4. *+.SC A '&& *+.Art.Art. in 'ener!l b. t1ird person. Io% is p!(ment to be m!de 6EInte'rit(F7 !.5. 12$.Art. 12$1 p!r. 'ive ! specific t1in'.... 'ive ! 'eneric t1in'. Cases Arrieta v! NA IC% supra >alalo v! L61% '. 121$ ".125. in c!se of !ctive solid!rit(.

1251 p!r. 1255 2. if no pl!ce is eApressl( desi'n!ted. 1 !.*.Art. Concept. .Art.*+. Applic!tion of !(ments 1.Art. $ ). !(ment b( Cession 1. 5ules in !pplic!tion of p!(ments. 11)6 5. EApenses of m!@in' p!(ment. Concept. 12$5 !.Art. estoppel. if rules in!pplic!ble !nd !pplic!tion c!nnot be inferred. 5e2uisites ". 1252.&4/ Pa$6l#o v! egala#o% '-2 SC A +'.Art.Art. 12$) C.Art.% <an6ary 2% +. 91ere p!(ment is to m!de. b. 116. 91en p!(ment is to be m!de !. 2 to p!r.Art. Concept. me!nin' of Emost onerous to debtorF D.Art. in 'ener!l. 1252 Cases eparations Co33ission v! Universal Deep Sea 5ishing% 4' SC A &(. 125$ i.)))/ 2. 1251 p!r.4! +. 12"5 d.Art. see Chapter $: %elay 6..125" !.Art. Effects E. D!tion in !(ment 1. distin'uis1ed from !(ment b( Cession Develop3ent BanA of the Philippines vs! Co6rt Of Appeals% G! ! No! ++4'-.c. 5e2uisites ". presumptions in p!(ment of interests !nd inst!llments.

%it1 creditorDs !pprov!l3 effects ii. purpose b. >ender of !(ment !nd Consi'n!tion 1.Art.4 SC A +& *+. 5e2uisites ".SC A/ Li$6anan vs! Dia1 *+&2 SC A% <6ly ./ L: .(.4.125.Art.' SC A +() *+. Effects Case 5ilinvest Cre#it Corporation vs! Philippine A$etylene% G 2)--. 2 ii. %1en tender !nd refus!l not re2uired.&. Effects.SC A (. 1261 i.4+% +).effects of noncompli!nce c. p!r. >ender of !(ment !. Concept b. Concept i. 1256 p!r.42/ TLG International Continental Enterprising% In$! v! 5lores% -& SC A -'& *+. 2 ../ eisen"e$A vs! CA% .126.Art. t%o notice re2uirement.' *+.).125+ p!r.+% +. 5e2uisites 2. 1 d.4(/ So$o v! 0ilitante% +./ 6ral BanA of Caloo$an vs! CA *April .% <an +.+% +. SC A (2& *+.Art.2. 125) p!r. p!r.Art. 9it1dr!%!l b( debtor !fter proper consi'n!tion. Cases De G613an v! CA% +'& SC A &') *+./ 0$La6ghlin v! CA% +-. 5e2uisites i. %it1out creditorDs !pprov!l3 effects f. Consi'n!tion !.Art.4.% +++ SC A 4.4'/ Sotto v! 0i@ares% . EApenses of consi'n!tion.. 2 e.) . 9it1dr!%!l b( debtor before !ccept!nce b( creditor or !pprov!l b( court3 effects. 126. 1.

') SC A/ 0eat Pa$Aing Corp vs! San#igan"ayan *<6ne . in obli'!tion to 'ive ! specific t1in'. 1265. As to eAtent i. %1en not !pplic!ble 5.))+% '2. Concept. 5e2uisites.% .+ .1165 !. As to eAtent i. 126. !rti!l b.Art.-% . 0inds !.. *oss or Impossibilit( A. d. SC A/ III. 1266. resumption. b.Art.126) 2.126+ in obli'!tion to 'ive ! 'eneric t1in'. 11+. le'!l ii. 5e2uisites.G2H 2. Effects . >ot!l ii. c. Concept. !rti!l ".Art. 1266 $. 126" in c!se of p!rti!l loss. 0inds !.Art. Impossibilit( of erform!nce 1.Art. >ot!l ii.Art..Art. 1262. *oss of >1in' Due 1.Art. 1262 $. B.Chan vs! CA *0ar$h '% +. As to source i.Art. Effects !. p1(sic!l ". 126$ !ction !'!inst t1ird persons.

%1en form!lities re2uired.1262 p!r. Condon!tion or 5emission A. resumptions. !rti!l 2. in c!se of p!rti!l impossibilit(.12)$ E.Art.Art..Art.. EApress b.&. p!r. Effects 1.. 2 BA0 vs! CA% G! ! No! +)-&. Concept B.(% 0ay 2% +. in 'ener!l 2. As to form. 12).Art. in obli'!tions to do. effects.!. 5e2uisites !. 0inds 1.overnin' 5ules. 1 !. Concept . r!tion!le B. 2 6b( !n!lo'(7 i.&% . . Eimpossibilit(F distin'uis1ed from Edifficult(F Cases O$$eDa v! CA% &' SC A ('& *+. 12)" 2. As to eAtent !. 126$ IB. 1266.&(/ Naga Telephone Co! v! CA% . 12)1. SC A b.. >ot!l b. Confusion or =er'er of 5i'1ts A.Art. p!r. 12).12)2.Art.! D. . 12).126). . 5enunci!tion of rincip!l or Accessor( #bli'!tion 1.(% 5e"r6ary ++% +. in c!se of joint or solid!r( obli'!tions 4...-/ PNCC vs! CA% G ++(4. Implied C.') SC A '2+ *+.Art.

12)+ 1.12+2 c.&.12+. in!pplic!ble.*+. Compens!tion A.4 SC A . *e'!l Compens!tion 1. SC A/ Pere1 vs! CA *G 2(+)+% 5e"r6ary +..'2 *+. !. 12)6 BI.B. Confusion in rincip!l or Accessor( #bli'!tion. in 'ener!l.2.(. 12).& SC A/ .&% G +++4. !rti!l 2..))-/ 9illan6eva vs! 5ran$is$o Tant6i$o <r! *G ! 2'242% 5e" +2% +. SC A/ 0irasol vs! CA *G +. EdueF distin'uis1ed from Edem!nd!bleF Cases Gan Tion v! CA% .. 12+" d. Convention!l. *e'!l b.Art. Concept.)% .Art. >ot!l b.4--4% 5e" +% . 0inds 1. 12)5 2.))+% '2+ SC A/ Asso$iate# BanA vs! 9i$ente 8enry Tan *G +2(.Art. 5e2uisites C. As to ori'in !.(/ C>8 In#6strial Develop3ent vs! CA *0ay &% +. in c!se of joint 6Art.(/ PNB v! Sapphire Shipping% .4-% +./ BPI v! eyes% . Distin'uis1ed from Confusion B. :udici!l.. Effects 1. 12). 12))7 or solid!r( obli'!tions D.' . As to eAtent !.Art.22 SC A 2&+ *+..Art.)% 4.Art. 5e2uisites. SC A +&.-)% De$! +-% . 4!cult!tive C.

*+.1 B.12++ E.SC A '2 *+.4&% +2+ SC A/ .Art.Silahis 0arAeting Corp vs! IAC *De$ &% +.Art.(.(& *+.Art. As to object !. 91en Compens!tion is &ot Allo%ed.Art. 12+5 p!r. Concept. 12+$ . 2 ". *e'!l ". %it1 @no%led'e but %it1out consent of debtor. r!tion!le BII.12+.((/ eyes v! Se$retary of <6sti$e% . Effect of &ullit( of Debts to be Compens!ted.4. 12. " !. 12+). Compens!tion of Debts !(!ble in Different l!ces.Art. %it1out @no%led'e of debtor.% +4) SC A/ BPI vs! CA *G ++(&.. EApress b. As to ori'in !. 12+6 4. Convention!l b. D. 0inds 1.Art. 5e2uisites.% 0ar$h .22 SC A/ 2. As to form !. Effects. Implied 2.&+/ Dor3itorio v! 5ernan#e1% &. 1 2. SC A '44 *+. Effects of Assi'nment of Credit 1. 12+5 p!r... 12.% +. 12.Art...(/ Con$hingyan vs! B S6rety an# Ins6ran$e *<6ne ')% +.Art. %it1 consent of debtor.(% .Art. 12+5 p!r.. &ov!tion A.&(/ 0ag#alena Estate v! o#rig6e1% +4 SC A . Subjective or erson!l C..2 Cases 0illar v! CA% '4 SC A (-. #bjective or 5e!l b.- .

Art.. #bjective &ov!tion 1. re2uisites. 12..Art. B( c1!n'e of debtor !.Art.(&+.. 1"... nullit( or void!bilit( of ne% obli'!tion.))'/ C6into vs! People% G! ! No! +.. 12. 12.))+% '(' SC A/ o3eo Gar$ia vs! Dionisio Lla3as *G ! +2-+. Effects 1.6vs..Art.2)% De$e3"er ++% .2 . re2uisites.'. Art. Effect of t1e St!tus of t1e #ri'in!l or &e% #bli'!tion 1. 12."7 ii.Art. 12. nullit( or void!bilit( of ori'in!l obli'!tion.1 .% April +-% +. in 'ener!l.6 E. 12.. re2uisites. !.Art. E promision i.Art. Convention!l subro'!tion i. 12.(% .Art. B( c1!n'e of creditor< Subro'!tion of ! t1ird person in t1e ri'1ts of t1e creditor.. %elegacion i.))'% -+& SC A/ California B6s Line vs! State Invest3ent *G +-&.&% De$e3"er 4% .Art. me!nin' of Eprincip!l conditionsF .! 2.4% <an! .))'% -+4 SC A/ Chester Ba"st vs! CA *G .) ".SC A/ 0olino vs! Se$6rity Diners International *G +'(&4)% A6g! +(% .+ 2. effects.6 2.. 12. %1en !ccessor( obli'!tion m!( subsist. 4.Broa#way Centr63 Con#o3ini63 Corp vs! Tropi$al 86t *<6ly 2% +.$ b.. suspensive or resolutor( condition of ori'in!l obli'!tion.))+% '2) SC A/ D. Subjective &ov!tion 1.Art. 1". *. effects. 12.'% .5 Case Gar$ia v! Lla3as% -+& SC A ." ii.

distin'uis1ed from Assi'nment of Credit iii.% .". 1". %1en presumed.1".( .ii. 1". effects.1".". re2uisites ii.Art.Art.))'! .'% .$ Li$aros 9s! Gat3aitan% G! ! No! +-.4'4% A6g6st . effects.$ Astro Ele$troni$s Corp! vs! Philippine EFport An# 5oreign Loan G6arantee Corporation% G! ! No! +'(&. 1". *e'!l subro'!tion i.))+! b.2 iii..% Septe3"er .Art.

) *+.in&ra7 !. &!tur!l elements ". 1$)"7 Case GSIS v! CA% . 1". =utu!lit( J Arts. +).)))/ b7 &o one m!( contr!ct in t1e n!me of !not1er J Art. Essenti!l elements 6see C1!pter II. 6see !lso Art.& . 4reedom to contr!ct J Art.5 B. SC A ((( *.+4/ D>C 8ol#ings Corp! v! CA% '.. 1"1) Case G6tierre1 83nos! v! Orense% .) SC A ..t1eir !ssi'ns !nd 1eirs Art.% 0ar$h +-% ..6 Cases Ga"riel v! 0onte #e Pie#a#% &+ Phil! -. 1".4!mil( Code 27 Arts.+ 2.Title II! Contra$ts Chapter I! General Provisions A.+-1"1.. Elements 1. 5el!tivit( !7 Contr!cts t!@e effect onl( bet%een t1e p!rties.4 SC A +4' *+.. Consent b. !rties 1. #bject c. Accident!l elements 6see D. Auto-contr!cts 2. 1$.. 1". 1"11 Cases 0anila ailroa# Co! v! La Co3paDia Trasatlanti$a% 4' Phil! 4&2 *+.in&ra7 C.)/ !. !nd 1$. C1!r!cteristics 1.))2!/ ".+-/ D.CC .4 Phil! 2&+ *+.". Definition J Art.'/ Professional A$a#e3i$ Plans% In$! 5ran$is$o Colay$o an# Ben@a3in Dino vs! Crisosto3o *G! ! No! +-42.& *+.. Speci!l dis2u!lific!tions 17 Art.. 1". #bli'!tor( force J Art.-+/ PaAistan International Airlines v! Ople% +.1. C!use 2.

1).7 "7 pactum de non alienado 6Art.. 6.+&/ 5ilipinas Co3paDia #e Seg6ros v! 0an#anas% +& SC A '. .(+/ Arroyo v! Berwin% '( Phil! '4( *+. rincip!l c. B( deliver( of t1e object 6re!l7 J Art./ E. 91!t t1e( m!( not stipul!te J Art. $..)2 *+. Cl!ssific!tion 1. d.CC ". Contr!r( to mor!ls Contr!r( to 'ood customs Contr!r( to public order Contr!r( to public polic( Cases C6i v! Arellano% . Common or inform!l b. SC A . rep!r!tor( b. 1"16 Accordin' to its rel!tion to ot1er contr!cts !..< 17 pactum commissorium 6Art. >1in's b. Accordin' to subject-m!tter !. 21". Innomin!te J Art. SC A -+' *+. 5.&4/ CorpuK vs. Speci!l or form!l Accordin' to purpose ".((/ B6sta3ante v! osel% '+. Services 2.++7 27 pactum leonina 6Art.7 b.e. c. 1". 2. Contr!r( to l!%.+ *+. e. CA 6. 1)+2." SC5A $2$7 17 do ut des 27 do ut &acias "7 &acio ut &acias $7 &acio ut des Accordin' to perfection !.6 !. Accordin' to n!me !.) Case Di1on v! Ga"orro% 4' SC A (44 *+. &omin!te b. 1". Accessor( Accordin' to form !. 1"15 b.4 ."7 Art. B( mere consent 6consensu!l7 J Art.'.

e. 0ar3ont esort vs! G6iang *+(4 SC A '&'/ +.. 1"1$ Cases Daywalt v! Corp!% '. Stipul!tions in f!vor of t1ird persons 6stipul!tions pour autrui7 J Art. 9it1 respect to t1ird persons 1.4. Accordin' to t1e n!ture of t1e vinculum produced !. SC A . Consumm!tion or de!t1 . Commut!tive b.commod!tum c.e. >r!nsfer of o%ners1ip. Ale!tor( 4. Conve(!nce of use.+.. Consent 1. Cases 5lorentino v! En$arna$ion% &.&+/ Bo6ng vs! CA *+(./ So Ping B6n v! CA% '+.r!tuitous or lucr!tive . Creditors of t1e contr!ctin' p!rties J Art. SC A .))2/ Chapter II! Essential e?6isites of Contra$ts A. ossession of t1e object of contr!ct b( t1ird persons J Art.+'/ +. #nerous b. 5eciproc!l +. Accordin' to ris@ !. As distin'uis1ed from ! perfected promise !nd !n imperfect promise 6policitacion7 I. 1"12 ".'. . St!'es 1. *+.!.. 1"11.(4/ Constantino v! Espirit6% '. Accordin' to c!use !. 5e2uisites J Art. Interference b( t1ird persons J Art.+)&! 0ar$h +4% ..!'enc( ).'.2& SC A 2'4/ +. erfection ".( SC A +&4 *+. SC A +. 1"1" $. rep!r!tion 2.SC A &2+ *+.2nd p!r. 8nil!ter!l b.'.e. .. !... 1"1. Phil! 24& *+. =ust be m!nifested b( t1e concurrence of t1e offer !nd !ccept!nce . Bil!ter!l c.)( *+. 5endition of services.44 0an#arin 9illa vs! CA *../ <ose Lagon vs! CA an# Lap61 *G! ! No! ++..( 2..s!le b.&&/ Co?6ia v! 5iel#3enGs Ins6ran$e Co!% .

4our t1eories on %1en t1e contr!ct is perfected< 1. b7 0inds i. 1"2$ Case San$he1 v! igos% -2 SC A '(4 *+.! <an6ary .-1"$6 17 Effect J Art. b7 91!t m!( be fiAed b( t1e offeror J Art. EApress J Art. 1"25 f7 Advertisements for bidders J Art. c7 If m!de b( letter or tele'r!m J Art. ii.+& *+.))'/ 17 #ffer !7 =ust be cert!in J Art.))2/ 00DA vs! <an$o3 *G! ! No! +-&-(2! <an6ary ')% . 1"".2nd p!r. 1"2. &ecess!r( le'!l c!p!cit( of t1e p!rties 17 91o c!nnot 'ive consent J Art.&.Cases osensto$A v! B6rAe% -( Phil! . 1"1./ 0al"arosa vs! CA *G! ! No! +.))'/ San Loren1o Develop3ent Corporation vs! CA *G! ! No! +. Implied J Art.. Co'nition t1eor( J Art.. 27 Bices of consent !7 =ist!@e or error ') . 1"22 d7 Circumst!nces %1en offer becomes ineffective J Art. 1"1.-.2nd p!r. =!nifest!tion t1eor( 2. 5eception t1eor( $.. 1"2) 27 91en offer !nd?or !ccept!nce is m!de !7 durin' ! lucid interv!l b7 in ! st!te of drun@enness c7 durin' ! 1(pnotic spell c.-. SC A +(4 *.)). >1e consent must be intelli'ent. 1"2. 1"1./ e7 Contr!ct of option J Art. 1"2$ b. 1"26 27 Accept!nce !7 =ust be !bsolute J Art.+% . EApedition t1or( ". i.spont!neous. iii. 1"21 c7 91en m!de t1rou'1 !n !'ent J Art. 1"". 1"1. 1"1.free. 1"2" e7 Business !dvertisements of t1in's for s!le J Art.2&(+! April ')% .!nd re!l J Arts. d7 eriod of !ccept!nce J Art.-/ 0al"arosa v! CA% -). /u!lified J Art.

(&)% Sept! +2% +.)/ L6stan vs! CA *G! ! +++.4. Error of l!% !.( *+... 1""5 i. SC A 2)+ *.&% +..+(/ 0aFina 8e3e#es v! CA% '+( SC A *+.))-/ iii. 1""6 Case '+ .2-42! Septe3"er +'% . 1""2 Cases D63as6g v! 0o#elo% '. 1""" b7 Biolence !nd intimid!tion J Art.-% <an .()+'% 5e" +.ener!l rule< !gnorantia legis neminem e cusat J Art./ Spo6ses Theis vs! CA *G L+. Effect J Art.. . 1""$ ii. !s to subst!nce of t1e object b.2./ Leonar#o vs! CA et al *G! ! No! +.'/ 8eirs of =illia3 Sevilla% et!al v! Leopol#o Sevilla% -). IneAcus!ble mist!@e J Art. !s to identit( or 2u!lific!tions of one of t1e p!rties d. " b.!s distin'uis1ed from ! simple mist!@e of !ccount Case Asiain v! <alan#oni% -2 Phil! .&/ 2.. EAception< =utu!l error of l!% J Art.))'/ Do3etilla An#res vs! 0an6fa$t6rers 8anover an# Tr6st *G 4..&/ >atip6nan vs! >atip6nan *G! ! No! +'.Phil! . =ist!@e of f!ct !. !s to princip!l conditions c. 91en one of t1e p!rties is un!ble to re!d J Art. @inds 1.% +. *+.i.-+2! <an6ary ')% . !s to 2u!ntit(.)).

+/ c7 8ndue influence J Art.*+../ '.)-. .4/ La6reta Trini#a# v! IAC% . Cases T6ason v! 0ar?6e1% -2 Phil! '4+ *+. Phil! 2.../ iii.+2 *+. *+.+2/ =oo#ho6se v! 8alili% supra Geral#e1 v! CA% ..&)% <6ly . 1"$$..*+.. =ere eApression of !n opinion J Art. 1"$1 1. Active?p!ssive Cases 0er$a#o an# 0er$a#o v! Espirit6% '& Phil! .') SC A '.2.'% Septe3"er (% +.SC A . 0inds 1. ii.). Cases A1arraga v! Gay% 2. 1"$" iii. 1"".-% +. 1"$$ Case Song$o v! Sellner% '& Phil! . 4!ilure to disclose f!cts3 dut( to reve!l t1em J Art.2.+/ iv. Effects J Art.+&/ e7 =isrepresent!tion i.../ i.. =!de in 'ood f!it1 J Art.2.2nd p!r. 8su!l eA!''er!tions in tr!de3 opportunit( to @no% t1e f!cts J Art.-/ Sierra vs! CA *G! ! No! .0artine1 v! 8ongAong an# Shanghai BanA% +2 Phil! .)SC A 2. B( ! t1ird person J Art.) *+.+)/ Lee vs! CA *G! ! No! . dolo causante J Art 1""+ 2.'/ 6ral BanA of Sta! 0aria v! CA% '+. 1"") d7 4r!ud or dolo J Art.22 *+. 1"$. 1"$2 ii. dolo incidente J Art.. 1""+ Cases 8ill v! 9eloso% '+ Phil! +(+ *+.+&/ Bragan1a v! 9illa A"rille% +)2 Phil! -2( *+. *+..

4.public. !. 5e2uisite . 1"55 '' . In remuner!tor( contr!cts c./ U3ali et al vs! CA *G! ! No! 4.))2!/ ii. As distin'uis1ed from motive J Art. 1"$+ C.. 4uture in1erit!nce.2+ SC A -') *+. Absence of c!use !nd unl!%ful c!use J Art.or public polic( 2. Effects J Art.2/ Panga#il et al vs! C5I *G! ! No! L:'. *+. All services not contr!r( to l!%. 1"$. In contr!cts of pure beneficence 2. Phil! 2&& *+. C!use of Contr!cts 1.2&/ b. St!tement of ! f!lse c!use in t1e contr!ct J Art. Defective c!uses !nd t1eir effects< !. All t1in's not outside t1e commerce of m!n b. 1"$5 1. 1"$) Case Blas v! Santos% + SC A 4.(+/ <!L!T! Agro% In$! vs! Balansag an# Ca#ay#ay *G! ! No! +-+44.mor!ls.))2/ b. ".'ood customs.2(+! Septe3"er +'% +.f7 Simul!tion of Contr!cts Cases o#rig6e1 v! o#rig6e1% . Impossible t1in's or services J Art. 91!t m!( not be t1e objects of contr!cts !. 5el!tive 0a$apagal vs! e3orin% Cal61a *G! ! No! +24'4)! 0ay +(% .. 1"$6 B. Absolute 2..must be determin!te !s to its @ind J Art. *+.! 0ar$h ++% . 1"51 ". 1"5.eAcept %1en !ut1oriKed b( l!% J Art.)/ i.+-/ S6ntay v! CA% . In onerous contr!cts b. =e!nin' of c!use J Art.-'&! A6g6st '+% +. All ri'1ts not intr!nsmissible c. 91!t m!( be t1e objects of contr!cts J Art. *esion or in!de2u!c( of c!use J Art... #bject of Contr!cts 1.4 SC A . 1"$) !. 0inds J Art. 1"52 Case Lig6e1 v! CA% +). 1"5" c.

>1ose re2uired for t1e v!lidit( of contr!cts.t1ou'1 it is not st!ted in t1e contr!ct J Art. EAception< 91en t1e l!% re2uires t1!t ! contr!ct be in some form in order t1!t it m!( be v!lid or enforce!ble. )$+)$. ./ C.1))"3 2.provided !ll t1e essenti!l re2uisites for t1eir v!lidit( !re present.)+! 0ar$h .Art.".1+)$. *+.&&/ Sps! B6enavent6ra% et! al! v! CA% -+( SC A .))-!I B. 1"56 B. =eetin' of t1e minds upon t1e contr!ct3 2. >1ose re2uired.% . >1ose re2uired for t1e purpose of provin' t1e eAistence of t1e contr!ct.))'/ $. 1"6) '- . 1"5. >1e f!ilure of t1e instrument to eApress t1e true !'reement is due to mist!@efr!ud.ine2uit!ble conduct.(' *. 1$. 6An'lo-Americ!n principle7 .(.))2/ Chapter I9! efor3ation of Instr63ents A.)))/ C6iros vs! Ar@ona HG! ! No! +24. Cases Gar$ia v! Bisaya% .4% . 6ESpiritu!l s(stemF of t1e Sp!nis1 Code7 .Cases Carantes v! CA% &( SC A 2+.& Phil! ().Art.1))1.& SC A +.Art..not for v!lidit(.*+.22/ Bentir v! Lean#e% '') SC A 2. Implied 5!tific!tion J Art.7< 1. 5e2uisites 6Art.&( *+. 1"56 Case 8ernae1 v! De los Angeles% .but to m!@e t1e contr!ct effective !s !'!inst t1ird persons. 1"5) !nd 1"5+3 !nd ".+ *.suc1 !s t1ose referred to in Arts.4''4! 0ar$h .suc1 !s t1ose covered b( Arts.or !ccident. 0inds of form!lities re2uired b( l!%< 1.in %1!tever form t1e( m!( 1!ve been entered into. >1e true intention of t1e p!rties is not eApressed in t1e instrument3 !nd ". resumption of t1e eAistence !nd l!%fulness of ! c!use. 1"66 C. Case es6ena vs!CA *G! ! No! +. C!ses %1ere no reform!tion is !llo%ed .ener!l rule< Contr!cts s1!ll be obli'!tor(.21"$. 1"5$ Chapter III! 5or3 of Contra$ts A.suc1 !s t1ose under t1e St!tute of 4r!uds in Art.

/ Carantes v! CA% supra Sar3ing% et! al! v! Cresen$io Dy% et! al!% '4' SC A +'+ *.)). 1")5 $.2% +.(. 1")1 apan6t vs CA . *+. 91en it cont!ins %ords t1!t 1!ve different si'nific!tions J Art..I '2 .2% .some of %1ic1 !re doubtful J Art.:('% A6g6st '% +. rim!c( of intention J Arts.. 1")+ !. 91en it is !bsolutel( impossible to settle doubts b( t1e rules !bove J Art. 1")$ Spo6ses igor vs! Consoli#ate# OriF Leasing An# 5inan$e Corporation HG! ! No! +'(-.-( SC A '. Io% to interpret ! contr!ct 1./ Santi vs! CA *G .'.'..'/ B..)% .4!I 2.22! April ..'% +.(.'! A6g6st . Cases Atilano v! Atilano% .2/ C. 1")) i1al Co33er$ial BanAing Corporation vs! Co6rt Of Appeals HG! ! No! +''+)&% 0ar$h .'! <6ly ..'(.))'!I 5.& SC A 2-+% +. Phil! .. 1"6+ E.!I ". 91en it cont!ins v!rious stipul!tions. Io% to determine intention J Art./ >asilag v! o#rig6e1% (. 1"). 1"6.+& *+. 91en it cont!ins stipul!tions t1!t !dmit sever!l me!nin's J Art.1")2 Cases Borro3eo v! CA% -& SC A (2 *+. in 'r!tuitous contr!cts Ga$os vs! Co6rt Of Appeals HG! ! Nos! 42.' *+.I 6. 1")" Oil An# Nat6ral Gas Co33ission vs! Co6rt Of Appeals HG! ! No! ++-'. 9it1 respect to t1e p!rt( %1o c!used t1e obscurit( J Art.4 SC A . 91o m!( !s@ for reform!tion JArt.D.)).. 1")6 Ch6a vs! Co6rt Of Appeals HG! ! No! ++. 91en it cont!ins !mbi'uities !nd omission of stipul!tions J Art./ Chapter 9! Interpretation of Contra$ts *Co3pare with 6les on Stat6tory Constr6$tion/ A....% . rocedure of reform!tion J Art.&.

C. 5. >1e p!rt( !s@in' for rescission 1!s no ot1er le'!l me!ns to obt!in rep!r!tion J Art. 1.7 DE5ECTI9E CONT ACTS Chapter 9I! es$issi"le Contra$ts A.(% .+% .))2/ Sps! Cann6 vs! Sps! Galang HG! ! No! +'.! A6g6st 4% +.-1. 1"+1 B. >1e( c!n be !tt!c@ed directl( onl(.(!I c. 2. Definition 2. 1")+ D.'-! <an6ary +2% .! Nove3"er .. 5escission J Art.))-!I E?6atorial ealty Develop3ent vs! 0ayfair Theatre *G! ! No! +''4&.))+/ ". >1e( c!n be !tt!c@ed onl( eit1er b( ! contr!ctin' p!rt( or b( ! t1ird person %1o is injured or defr!uded.. 0inds J Art. 1. >1eir defect consists in injur( or d!m!'e eit1er to one of t1e contr!ctin' p!rties or to t1ird persons.!nd not coll!ter!ll(.))+!I ivera vs! Del osario HG! ! No! +--. Ie is !ble to return %1!tever 1e m!( be obli'ed to restore if rescission is 'r!nted J Art 1"+53 ivera vs! Del osario HG! ! No! +--.))2!I Iringan vs! Co6rt Of Appeals HG! ! No! +. ". $. 11. >1e( c!n be conv!lid!ted onl( b( prescription.(% .))-!I '( . 1"+"3 The Union Ins6ran$e So$iety Of Canton vs! Co6rt Of Appeals HG! ! No! +))'+.+)&! Septe3"er .b. Applic!bilit( of 5ule 12". 91en t1e doubts !re c!st upon t1e princip!l object so t1!t t1e intention c!nnot be @no%n J Art. in onerous contr!cts ).!nd not b( r!tific!tion.2. 5e2uisites< !. As distin'uis1ed from rescission under Art..1 Case Universal 5oo# Corp! v! CA% '' SC A + *+. C1!r!cteristics 1.&)/ Pry$e Corporation vs! PAGCO *G! ! No! +2&-4)! 0ay (% .5ule 1". 1"+. >1e( !re v!lid before rescission.'-! <an6ary +2% . >1e contr!ct is rescissible3 b.'! 0ay .5ules of Court 6no% Secs.

..4/ C.+.) Case Singsong v! Isa"ela Saw3ill% 44 SC A (.. 1". >1e( !re susceptible of conv!lid!tion b( r!tific!tion or b( prescription./ Sig6an v! Li3% et! al! % '+4 SC A &. resumptions of fr!ud J Art. 5. 2./ 6.(--! 0ar$h &% .rounds J Art. 1"+5 !. 1"+53 e.. 1"+5.' *+. B. 0inds J Art.-' *+./ Sa3ahan Ng 0agsasaAa Sa San <osep vs! 9alisno HG! ! No! +24'+-! <6ne '% . Annulment 1.+ Phil! . *i!bilit( for !c2uirin' in b!d f!it1 t1e t1in's !lien!ted in fr!ud of creditors J Art.)))!I 0 8ol#ings Lt# vs! Carlos *G! ! No! +'4+)-! April ++% ./ S6ntay v! CA% s6pra China BanAing Corporation vs! Co6rt Of Appeals HG! ! No! +. ".))-!I 0ala"anan vs! Gaw Ching *+4+ SC A 4-% +. As distin'uis1ed from rescission 2.. 1"++ Chapter 9II! 9oi#a"le or Ann6lla"le Contra$ts A. ". 91o m!( !nd m!( not institute !ction for !nnulment J Art.)/ '& . 1"+) !. 1"+$ Sig6an v! Li3% et! al! % '+4 SC A &. Effect of rescission J Art. EAtent of rescission J Art..)). >1e !ction for rescission is brou'1t %it1in t1e prescriptive period of four 6$7 (e!rs J Art 1"+. >1e object of t1e contr!ct 1!s not p!ssed le'!ll( to t1e possession of ! t1ird person !ctin' in 'ood f!it1 J Art..d.&.2 *+. %it1 respect to t1ird persons %1o !c2uired t1e t1in' in 'ood f!it1 J Art.) SC A (.2 *+. $. >1eir defect consists in t1e viti!tion of consent of one of t1e contr!ctin' p!rties.2nd !nd "rd p!r. B!d'es of fr!ud Cases Oria v! 0$3i$Aing% . >1e( !re bindin' until t1e( !re !nnulled b( ! competent court../ ).. 1". C1!r!cteristics 1. . 1". Case 5elipe vs! 8eirs of Al#on *+.

1 Case Carantes vs! CA *&( SC A 2+-/ 5.1 D.2 Cases Ca#walla#er . EAtin'uis1ment of t1e !ction !. 2. 1". >1e r!tific!tion is m!de %it1 @no%led'e of t1e c!use for nullit(3 c.. 6. rescription J Art. 1$.-+2! <an6ary ')% . 5!tific!tion 1. 1". Co!% & Phil! -(+ *+. >atip6nan vs! >atip6nan HG! ! No! +'.))-/ 17 91en one of t1e p!rties is inc!p!cit!ted .Ar3entia vs! Patriar$a *+4 SC A +." b..2 b. 1". 91en t1e t1in' is lost t1rou'1 t1e f!ult of t1e person %1o 1!s t1e ri'1t to file t1e !ction J Art.+4/ '4 . 4orms !. *+.!I 27 91en t1e t1in' is lost t1rou'1 t1e f!ult of t1e p!rt( obli'ed to return t1e s!me J Art. Effect !. =utu!l restitution J Arts. >1e contr!ct is void!ble3 b. B( t1e p!rties t1emselves or b( t1e 'u!rdi!n in be1!lf of !n inc!p!cit!ted p!rt( J Art.)&/ 9elar#e v! CA% s6pra Davi# Ines vs!Co6rt Of Appeals HG! ! No! ++-)2+! A6g6st +-% +. 5e2uisites< !. 1". EApress or t!cit J Art. Co! v! S3ith% Bell .+ !nd 1$.2!I Arra ealty Corporation vs! G6arantee Develop3ent Corporation *G! ! No! +-. At t1e time of t1e r!tific!tion.2'% +. Effects< !. 1". 1$.t1e c!use of nullit( 1!s !lre!d( ce!sed to eAist.'+)! Septe3"er .)).. 1". Action to !nnul is eAtin'uis1ed J Art.2 Case Uy Soo Li3 v! Tan Un$h6an% '4 Phil! 22.$ ".)% .((/ $. 1".Art. B( r!tific!tion J Art.

5 Cases Car"onnel v! Pon$io% et al!% +)' Phil! (22 *+. 1".'/ Ba"ao vs! Pere1 *+). Effect of r!tific!tion b( t1e p!rents or 'u!rdi!n of bot1 p!rties J Art. SC A &)'/ Li3AetAai Sons vs! CA *. 1$. >1e( c!nnot be !ss!iled b( t1ird persons.$ 2. Contr!cts covered b( t1e St!tute of 4r!uds Case Asia Pro#6$tion Co!% In$! vs! PaDo HG! ! No! 2+)24! <an6ary . 0inds J Art. Io% r!tified J Art. 1$. 1$.(/ c. >1e( c!nnot be enforced b( ! proper !ction in court.&/ b.6 Chapter 9III! Unenfor$ea"le Contra$ts A.) b. >1e( !re susceptible of r!tific!tion. . Contr!cts eAecuted b( p!rties %1o !re bot1 inc!p!ble of 'ivin' consent to ! contr!ct !. 2.overnin' rules J Art.24/ 5irst Philippine International BanA vs! CA *G! ! No! ++24-. B.!I =estern 0in#anao Co! vs! 0e#alle *&.2) SC A 2.-! <an6ary .. Phil! 42& *+.&% +. 1$...&/ !.b. C1!r!cteristics 1.! <an6ary ." 1. Phil &2(/ eiss vs! 0e3i@e *+2 Phil '2)/ 9illan6eva vs CA *G! ! No! +)&(. 5i'1t of t1e p!rties %1en ! contr!ct is enforce!ble but ! public document is necess!r( for its re'istr!tion J Art. ".) '. urpose of St!tute Case Philippine National BanA v! Philippine 9egeta"le Oil Co!% -. 1$. Effect of r!tific!tion b( t1e p!rents or 'u!rdi!n of one of t1e p!rties J Art. 8n!ut1oriKed contr!cts !.4% +. >1e contr!ct is cle!nsed retro!ctivel( from !ll its defects J Art.6 ".-% +. ... 1$.

-/ G6iang vs! CA *.or purpose is contr!r( to l!%.))2/ -) . 1$15 Cases Lig6e1 v! CA% supra ello1a v! Gaw Cheen 863% .% . 0inds JArt./ C6i vs! Arellano University *.' SC A .)2/ Chave1 vs! PCGG *')& SC A '.+ SC A '&.' Phil! 4. >1ose %1ose c!use.object. SC A .public order or public polic( 17 91en t1e !ct constitutes ! crimin!l offense J Art. Contr!cts t1!t !re void !. 1$1$ $7 91en t1e contr!ct is ille'!l !nd one of t1e p!rties is inc!p!ble of 'ivin' consent J Art..(&/ 5ren1el v! Catito% -)( SC A 22 *. 1$16 Cases Philippine BanAing Corp! v! L6i She% .(/ B. C1!r!cteristics 1. 1$. 1$. 1$12 !7 in pari delicto rule Cases 0en$ha$e1 vs! Teves *G! ! No! +2'.!nd mone( is p!id or propert( delivered t1erefor J Art. Cases Tongoy vs! CA *+. Boid from t1e be'innin' 2. 1$11 !7 in pari delicto rule 27 91en t1e !ct is unl!%ful but does not constitute ! crimin!l offense J Art.mor!ls'ood customs.(% .))2/ Angel vs 0o#ales*G! ! No! +-2)'+! <an6ary .)+! <an6ary .Chapter IJ! 9oi# or IneFistent Contra$ts A.))-/ "7 91en t1e purpose is ille'!l. roduces no effect %1!tsoever ". C!nnot be r!tified J Art..& *+..))'/ A$a"al an# Ni$olas vs! A$a"al *G! ! No! +-4'&(! 0ar$h '+% ./ Castillo vs! Galvan *42 SC A 2...2'/ 57 91en t1e !'reement is not ille'!l per se but is pro1ibited J Art.+ SC A 2. 1. *+.

1$2" C. 2. Phil! +)+ *+. 1$22 >1ose %1ose object is outside t1e commerce of m!n >1ose %1ic1 contempl!te !n impossible service >1ose %1ere t1e intention of t1e p!rties rel!tive to t1e princip!l object of t1e contr!ct c!nnot be !scert!ined >1ose eApressl( pro1ibited or decl!red void b( l!% b. 1$1+ +7 91en ! l!borer !'rees to !ccept ! lo%er %!'e t1!n t1!t set b( l!% JArt. >1ose %1ic1 !re !bsolutel( simul!ted or fictitious 6see Arts.'. B( nov!tion -+ . does not prescribe J Art. 2.24! <6ly ++% . >1ose %1ose c!use or object did not eAist !t t1e time of t1e tr!ns!ction C. Conversion to civil obli'!tion 1. 1"$5 !nd 1"$67 b. e. 1$1.7 91en t1e contr!ct is t1e direct result of ! previous ille'!l contr!ct J Art. is not !v!il!ble to t1ird persons %1ose interest is not directl( !ffected J Art.5ren1el vs! Catito *G! ! No! +-'.. c. 1$. Definition J Art. 1$1) )7 91en b( virtue of ! contr!ct ! l!borer undert!@es to %or@ lon'er t1!n t1e m!Aimum number of 1ours of %or@ fiAed b( l!% J Art. 1$1.))'/ 67 91en t1e !mount p!id eAceeds t1e m!Aimum fiAed b( l!% J Art.-)/ 5isher v! o""% (. 1. 5i'1t to set up defense of ille'!lit( c!nnot be %!ived J Art. d./ D. As distin'uis1ed from mor!l obli'!tions Cases 9illaroel v! Estra#a% &+ Phil! +-) *+. 1$2.7 91en t1e contr!ct is divisible J Art. Contr!cts t1!t !re ineAistent !. 1$21 Title III! Nat6ral O"ligations A. 1$2" B. . As distin'uis1ed from civil obli'!tions J Art. >1e !ction or defense for t1e decl!r!tion of t1e ineAistence of ! contr!ct 1. D.

&(/ D. 0inds J Art. . >rustee ". 1$$2 C. 1. !rties J Art. Definition B.SC A ''& *+. >rustor 2.&)/ B.4'/ Title 9! Tr6sts C1!pter I./ ea#7 Annotation% '. Title I9! Estoppel A. 1$". SC A 2-. 0inds 1. Benefici!r( or cestui que trust D. E2uit!ble estoppel or estoppel in pais J Art.*+.2. . 1$2$-1$". B( record b. >ec1nic!l estoppel !. ersons bound J Art.overnin' rules J Art. B( deed J !rt. 1$$. 1$"$-1$"+ Case 0ig6el v! Catalino% . 1$"" C. Definition J Art. EA!mples J Arts.(. C!ses %1ere estoppel !pplies J Arts. B( r!tific!tion E. 0en#o1a vs! eyes an# CA *G! ! No! L:'+(+4! A6g6st +&% +. . 1$$1 -. 1$"1 Case >alalo v! L61% '.ener!l rovisions A. 1$"" ".'. Case 0anila Lo#ge No! &(+ Benevolent an# Prote$tive Or#er of the ElAs v! CA% &' SC A +(4 *+.( SC A .

(. EApress >rusts !.))2/ -' .'+ *+. 1$$1 b. Implied >rusts !.% . *+. 1$5) c. 1$$5 d. 1$$" b.&(/ 1.&.(4/ B6eno v! eyes% ./ Ta3ayo v! Calle@o% -( SC A .Case Salao v! Salao% &) SC A +(4 *+.. 1$$+-1$56 Cases 5a"ian v! 5a"ian% . 9!nt of trustee J Art. 1$$$ c. 4orm J Art. Io% est!blis1ed J Art.& *+. 1$$1 2.& SC A ++&.))2/ A1nar Brothers ealty Co3pany vs! Aying *G No! +--&&'! 0ay +(% . Io% proved J Art./ 8eirs of San@or@o vs! C6i@ano *G ! No! +-)-2&! <an6ary +. EA!mples J Arts. roof re2uired J Art. SC A . Accept!nce b( t1e benefici!r( J Art.

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