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in the first place, then he's still liable. – Something is considered lost when it perishes, it cannot be recovered or its existence is unknown. – Law or stipulation? Nature of obligation requires assumption of risk? Obligation arises from a crime? The obligor is still liable then, even for fortuitous events. – PREREQUISITES: the thing is specific or determinate; loss occurs without fault of debtor; debtor did not delay. ARTICLE 1263 If the thing is lost, but it was generic, then obligation is not extinguished. – A generic thing never perishes. → FIND A NEW ONE. ARTICLE 1264 The courts shall determine whether partial loss equals extinguishment. – If a part is harmed or compromised, then courts na bahala if game parin. – Takes into consideration circumstances of obligation. Like, is the part that was lost the entire point of the obligation? Can the obligation still function without that part? ARTICLE 1265 Assume the loss is the debtor's fault. But if there was a natural calamity, assume it wasn't. ARTICLE 1266 Obligation to do? If it becomes legally or physically impossible, obligation extinguished. – Must be realized after constitution of obligation. → If the obligation is impossible from the beginning, the obligation is void. – PHYSICALLY IMPOSSIBLE: physically incapacitated, or obligor dies. – LEGALLY IMPOSSIBLE: impossible by provision of law even though it is physically possible. ARTICLE 1267 If the obligation is too hard to complete, wag nalang. – Applicable to personal obligations to do and real obligations to give or deliver. ARTICLE 1268 If the obligation is because of a crime, the debtor still has to pay the price, whatever the cause, unless the person receiving says iz okay lung. – If you stole it and harmed it, even if you give it back, you hafta pay parin, because you are at fault. Unless the dude says, wag na, bro, okay na tayo. ARTICLE 1269 If an obligation was extinguished because of loss, and someone else—but not the debtor—was responsible, the creditor can go after the other guy. – Rights of action of the debtor are transferred to the creditor. ARTICLE 1270 Condonation or remission requires explicit or implicit acceptance by obligor. – CONDONATION/REMISSION: creditor forgives debt. A form of donation. – REQUISITES: must be gratuitous [free of charge]; accepted by obligor; parties must have capacity; must not be inofficious [contrary to moral obligation]; if made expressly, must
comply with forms of donation. – KINDS 1. EXTENT a. COMPLETE: when it covers the entire obligation. b. PARTIAL: does not cover entire obligation. 2. FORM a. EXPRESS: verbal or in writing. b. IMPLIED: can only be inferred from conduct. 2. DATE OF EFFECTIVITY a. INTER VIVOS: while still donor is still alive. b. MORTIS CUASA: effective when donor dies, must comply with will. – since it's a donation, you can't give more than you can. ARTICLE 1271 If there is a private document from creditor to debtor saying iz all good, then you give up right of action. Wanna nullify? Must be inofficious, and the debtor has to agree with you. – If obligation is joint, the presumption of remission is only to the share of the dude holding the document; if solidary, to the total obligation. – Debtor must prove that document was in payment, not remission of debt. ARTICLE 1272 If private document where the debt appears is with the debtor already, presume the creditor delivered it voluntarily. – And if he delivered it voluntarily, see 1271. – Normally kasi, the document with the debt is with the creditor., and if it's with him, then you assume that it hasn't been paid yet. So if it's with the debtor, then the automatic assumption is the creditor gave it, meaning it's been paid. – If there was no payment though and the debtor has the document already, then presume remission. ARTICLE 1273 Renunciation of principal obligations extinguishes all accessory obligations, but not vice versa. – Accessary follows the principal, not the other way around. ARTICLE 1274 If a principal obligation has the accessary obligation of a pledge, once the pledge is found back with the debotor, then presume creditor said na the obligation can carry on without the pledge. – When the debtor pledges something, he gives it to the creditor or a third party to keep [sort of as a guarantee] until the obligation is extinguished. – Debtor is still indebted for principal obligation though. Suckerz. ARTICLE 1275 Obligation is extinguished once creditor and debtor become the same person. – CONFUSION/MERGER: one person becoming the creditor and debtor in respect to the same obligation. – REQUISITES: must take place between the principal debt and creditor; has to be complete. – Basta mega six-degree obligation happeningz. ARTICLE 1276 Merger extinguishes the principal obligation, so the accessory one follows also. However, if the accessory obligation is extinguished, that doesn't mean the principal one has been also.
” ARTICLE 1278 Compensation will take place when two people are each others' creditors and debtors. both debts must be due. unless it happens in all the debtors of the joint obligation. doesn't change. EXTENT a. however. both debts are liquidated. – COMPENSATION vs. FACULTATIVE: set up by one party. Compensation has two obligations. ARTICLE 1277 Confusion does not extinguish a joint obligation. – In a solidary obligation. LEGAL: takes place by operation of law without knowledge of parties. d. and every debtor is individually responsible for the payment of the whole obligation. ARTICLE 1281 Compensation may be total or partial. 2. a debtor has a corresponding creditor [and vice versa]. TOTAL: both obligations balance out to the same amount. confusion. → Thus. it only affects them. JUDICIAL: ordered by court. PARTIAL: balance remains out of the meeting of both obligations. Entirely extinguished. – If it's partial compensation. – KINDS 1. Basically balancing out the obligations and if there is excess. b. – Guarantor has the right to set up compensation. The amount however. – Must be valid and agreed upon and blah blah. guarantor is only liable to the remaining balance. there is only one obligation. c. → Cause in a solidary obligation. VOLUNTARY: takes place by agreement of parties. . pay that nalang. Compensation is indirect payment. ARTICLE 1279 Prerequisites for compensation: obligations must be principal. both are creditors and debtors. confusion has one. b.– Extinguishment of accessory obligation of guarantee? Guarantor is off the hook. CAUSE/ORIGIN a. Compensation. ARTICLE 1280 Accessory obligation of a guarantor is extinguished by total compensation. it shits on article 1279. a debtor can ask for reimbursement from other debtors for him “paying their shares. 2. – Because in a joint obligation. 3. The other debtors still owe the other creditors the same amount. no controversy by a third party. one is creditor and debtor. so if confusion happens. CONFUSION 1. – Voluntary or conventional compensation such as this do not require the abovementioned prerequisites. both debts must be money or something consumable or of the same kind. – Yes. the entire obligation is extinguished. ARTICLE 1282 Compensation may be agreed upon if both debts are not yet due. confusion is impossibility of payment. – COMPENSATION: extinguishment of the debts of two people who are each others' creditors and debtors.
– Basically if you don't pay and the other guy goes psycho. but not after. wala ring point. you can still collect from whoever was originally in the obligation. then you can sue him for damages and then use whatever that was as compensation for whatever you had to pay. Assignment with the consent of debtor: if you reserve your right to the compensation while consenting to assignment. ARTICLE 1286 When an exchange is made. then the amount charged to the other can be used for compensation. they can be used for compensation before the courts rescind them. ARTICLE 1288 Compensation can't be done if one of the debts is a civil liability arising from a crime. 2. – Rescissible and voidable obligations are valid until judicially rescinded. you are only liable to the remaining. 2. – Whoever claims compensation must pay for the expense of exchange. you have to do it all over again. important is when debtor learns of the assignment. Assignment without knowledge of the debtor: compensation can be set up before or after assignment. One of the debts arises from a depositum: a DEPOSIT [same thing as depositum] is basically giving something to someone for safe-keeping. However. . because should the annulment be retroactive. One of the debts arises from civil liability arising from a penal offense: you can't use whatever you acquired illegally for compensation. then you lose the right to the defense of compensation versus a third party. okay. it's as if there was no compensation in the first place. 3. ARTICLE 1287 Compensation can't be done when one of the debts arises from a gratuitous act. 3.ARTICLE 1283 If one of the parties in a case over an obligation can claim for damages against the other. ARTICLE 1285 In compensation. everyone else has to as well. So although you are now liable to a third party. even to include a third party. Pertains only to the accused. 4. One of the debts arises from a claim for support due by gratuitous title: basically has to do with your parents not saying that since they take care of you. like paying for bail money. The good thing is. ARTICLE 1284 If debts are rescissible or voidable. Assignment with knowledge but without the consent of debtor: compensation is possible to debts before assignment was made. – WHEN IS LEGAL COMPENSATION NOT ALLOWED BY LAW? 1. – BUT. – COMPENSATION BEFORE ASSIGNMENT: Assuming you did compensation already. Affects “pending” debts. compensation must also happen for the expenses incurred in order for the exchange to be made. – If you give consent to assignment. – COMPENSATION AFTER ASSIGNMENT 1. One of the debts arises from a commodatum: a COMMODATUM is when you lend someone something not consumable to use for some time that will be eventually returned. it can't be used for compensation if you owe them a certain amount of money. rights can be reassigned. then okay. if you gave consent to assignment already. Breach of trust daw. if the victim wants it.
ARTICLE 1290 When all prerequisites for compensation are present. SUBJECT a. DELEGACION: creditor accepts the new debtor to take old one's place. IMPLIED: when the old and the new obligations are essentially incompatible. EXTENT a. b. ARTICLE 1293 In novation. but not without consent of the creditor. capacity and intention of parties to modify or extinguish the obligation. c. one has to give. – KINDS OF PERSONAL NOVATION 1. . – NOVATION: relative extinguishment of an obligation by creating a new one in substitution of it. you have to specify which debt you are paying. creditor] must agree. ORIGIN a. subrogating a third person in the rights of the creditor. with creditor consent. b. b. – That is. all parties [old debtor. 3. etc. REAL/OBJECTIVE: change in object or principal conditions. the rules of application of payments will apply to the order of compensation. – Consent of parties not required. you can substitute a new debtor even without the knowledge of the old debtor. it must be declared so in unequivocal terms. – Payment by the new debtor allows him rights in 1236 and 1237. SUBSTITUTION: debtor is substituted. new debtor. a. substituting the person of debtor. – REQUISITES OF NOVATION: a previous valid obligation. CONVENTIONAL: takes place by agreement of parties. Old debtor being released from his obligation is KEY. creation of a new valid obligation. → They must both be impossible to make them incompatible. even without the knowledge of the creditors and debtors. 2. MIXED: combination of real and personal. → Compensation by mere operation of law. EXPRESS: when it is declared in unequivocal terms. Right of new debtor who pays: reimbursement and subrogation. – Novation is never presumed. TOTAL: old obligation completely gone. ARTICLE 1291 Obligations may be modified by changing the object or principal conditions. b. – KINDS: 1. b. PERSONAL/SUBJECTIVE: when the person of the debtor is substituted or the subrogation of a third person in the right of the creditor. LEGAL: takes place by operation of law. Right of new debtor who pays: beneficial reimbursement. compensation is automatic. modification or extinguishment of old obligation. PARTIAL/MODIFICATORY: modifications to original obligation. ARTICLE 1292 For novation to happen. EXPROMISION: new debtor takes initiative.ARTICLE 1289 If a person has several debts. – TEST OF INCOMPATABILITY: Whether they have an independent existence of each other. 4. old one doesn't know. HOW IT IS CONSTITUTED a.
=)) ARTICLE 1297 If the new obligation is void. ARTICLE 1300 Subrogation of a third person in the rights of the creditor is either legal or conventional. ARTICLE 1298 Novation is void if the old obligation was void. ARTICLE 1299 If the old obligation had a suspensive or resolutory condition. – SUBROGATION: substitution of a creditor (subroger) for another (subrogee) in reference to a right or lawful claim. then yes parin to novation. unless stipulated.2. you can't go back to the old debtor. CONVENTIONAL: takes place by express agreement of debtor. 2. new creditor. old debtor is still liability-free. – “Conventional” must be clearly established in order to take effect. the old obligation will make a comeback unless the parties say that the old obligation should really be extinguished. The old debtor is liability-free. old creditor. – KINDS OF SUBROGATION 1. LEGAL: takes place without agreement but by operation of law. . – Efficacy of the new obligation depends upon whether the condition which affects the old obligation is complied with or not. =)) – Unless the new debtor's insolvency was known to the old debtor or was public knowledge [even if old debtor didn't know] or was already existing. old creditor. – Ratification says yes to the obligation even though you'd be stupid to. ARTICLE 1295 When the new debtor fucks up. accessory obligations may exist only to benefit the third person who did not give consent to novation. If it is annulled though. new creditor. ARTICLE 1296 When principal obligations are extinguished by novation. – DEBTOR because he's still the liable one. – Only in delegacion. – If the new obligation is only voidable. – Only in expromision. ARTICLE 1301 Conventional subrogation requires the consent of debtor. ARTICLE 1294 If substitution is done without the knowledge or against the will of the old debtor. the new obligation will also have it.” and the old obligation can be enforced. if the new one fucks up. EXCEPT when annulment may be claimed only by debtor or when ratification validates acts which are voidable. SUBROGATION: a third person is subrogated in the rights of the creditor. – Parang love. – “Legal” is not presumed. he gets to stand at the sidelines and laugh. novation “did not happen. → Just insolvency though. If it's nonfulfillment. – If the third person gives consent. then never mind na talaga.
MORALS: deal with norms of good and right conduct. No contract. LAW: duh. – An offer to the fulfillment of a prestation by one party is accepted by another. DO UT FACIAS: I give that you may do 3. ARTICLE 1304 If partial payment has been made to a creditor. (3) a person interested in the fulfillment of the obligation pays. POLICE POWER: the power of state to enact laws. 2. Obligation is the legal tie that exists after a contact is made. – CONTRACT vs. AGREEMENT: Contracts are agreements enforceable through legal proceedings. . and basta regular law. no obligation. – CONTRACT vs. he is preferred to the subrogated creditor. LAW: duh nga. 2. PUBLIC POLICY: the common good. – NEW CREDITOR: because he may not trust the debtor. 4. DO UT DES: I give that you may give 2. KINDS 1. B. 2. the obligation carries on as if nothing changed. 3. ARTICLE 1307 Innominate contracts are regulated by stipulations of parties. de wag ka na sumali. even without debtor knowledge. (2) when a third person [without any tie to the obligation] pays with the approval of the debtor. clauses.– OLD CREDITOR: because his rights are extinguished. ARTICLE 1303 In subrogation. PUBLIC ORDER: keep the public safe. All contracts are agreements but not all agreements are contracts. but an obligation made exist without a contract. but norms may differ with people. terms and conditions. all the rights and actions of the old creditor are transferred to the new creditor. WHY DO WE NEED THEM? It is impossible to anticipate all kinds of contracts. C.] ARTICLE 1302 Presume legal subrogation when (1) a creditor pays another creditor who is preferred. – INNOMINATE CONTRACTS: no specific name or designation in law. Oh life. Agreements that are not enforceable by that means are not contracts. even with knowledge of debtor. FACTO UT FACIAS: I do that you may do. Civil Code. 3. This part is really lame. – LIMITS TO CONTRACTUAL STIPULATIONS 1. – Basically. – CONTRACT MUST NOT BE CONTRARY TO 1. [Labo mo. rules governing analogous contracts. OBLIGATION 1. RULES GOVERNING THEM Governed by agreement of the parties. FACTO UT DES: I do that you may give 4. Contract is a source of obligation. without prejudice to effects of confusion. ARTICLE 1305 A contact is a meeting of minds between two people whereby one binds himself to give something or to render some service. a. ARTICLE 1306 The contracting parties may establish stipulations. 5. GOOD CUSTOMS: habits and practices of society.
Neither contracting party represents third party. → Keeps the creditor safe from getting played like a nigger. assuming he says yez to the obligor. ARTICLE 1311 Contacts affect only the parties. . ARTICLE 1314 Contracting party that induces a third party to violate the contract is liable for damages. the assigns. by provision of law. – Third person who did not take part in the contract but is affected by it? You have no right to demand anything. – A third person can appraise the value of obligation to either party. Third person must have communicated acceptance to obligor before revocation. Stipulation in favour of third person must only be a part of the contract. 3. – Stranger and his unwarranted interference with a contract. ARTICLE 1315 Contracts are perfected by mere consent. third persons who come into possession of the object of the contract are included. ARTICLE 1309 The determination of the performance is left to a third person whose decision is not binding until it is made known to both contacting parties. 2. the heirs. its validity or compliance cannot be left to the will of one of them. – Presupposes the contract is valid and the third person has knowledge of the contract. 5. b. PREREQUISITES 1.customs. by stipulation. – If it sucks forreal. – In case third parties or attachments are made to the obligation. CLASSES 1. the courts handle it. ARTICLE 1312 In contracts creating real rights. Should not be compensated by any kind of obligation. – NOMINATE CONTRACTS: specific name or designation in law. – EXCEPTIONS: contracts that are not transmissible by their nature [involving personal qualifications]. a. Clearly agreed upon favour to the third person. – This is the exception to the rule that a contract only binds involved parties. ARTICLE 1310 The determination of performance made by a third person [in 1309] is not obligatory if it sucks. Obligation is due from the promisee to the third person. ARTICLE 1313 Creditors are protected in cases of contracts intended to defraud them. – STIPULATION POUR AUTRUI: favour to a third person who has a right to demand fulfillment. ARTICLE 1308 The contact must bind both parties. Stipulation is intended for the benefit of such person. 4. 2.
cause of the obligation is established. AND person whose name it was made in must act within his power. interest. Must be clear and express. – CLASSES OF ELEMENTS OF A CONTRACT 1. penalty. – PERFECTION means they are bound to the fulfillment of contract and its consequences. but on a different basis. REAL CONTRACT: perfected by the delivery of the thing. Must be absolute. – CLASSIFICATION OF CONTRACTS ACCORDING TO PERFECTION 1. the guy who made the contract in his name is liable. CONSUMMATION/TERMINATION: parties have performed respective obligations. contract is fully accomplished. → Basically rejection of the original offer. ACCIDENTAL ELEMENTS: stipulations established by parties. commodatum are not perfected until delivery of the object of the obligation.as regards to CONSIDERATION or cause.as regards to SUBJECT MATTER. a. 2. PREPARATION/NEGOTIATION: no definite agreement yet. – Ratification has to be before the other contracting party revokes it. Must be certain. periods. 3. ARTICLE 1318 There is no contract unless these prerequisites are met: consent of the contracting parties. . PERFECTION/BIRTH: definite agreement over subject matter and cause of the contract and essential elements. ARTICLE 1319 Consent is the meeting of an offer and the acceptance upon the thing and the cause which are to constitute the contract. Without this. SOLEMN CONTRACT: that which requires compliance with certain formalities prescribed by law. becomes an attempt by parties to enter into a contract. . – PERSON BOUND BY THE CONTRACT OF ANOTHER? Guy who did the contract has to be authorized or he as to have right by law to represent the guy whose named he used. cause.as regards to FORM. b. etc. COMMON: those present in all contracts. The contract is presumed to have been entered into in the place where the offer was made. SPECIAL: present in specific cases. – If person in whose name the contract was made is not given notice. resulting to extinguishment. . 3. . Perfected by acquiring special form.ARTICLE 1316 Real contracts such as deposit. like conditions. object. 3. – QUALIFIED ACCEPTANCE: constitutes a counter offer. 2. ESSENTIAL ELEMENTS: requisites of a contract. the contract does not validly exist. – ACCEPTANCE: manifestation of approval of the offeree to the offerer. CONSENSUAL CONTRACT: perfected by mere consent. object certain which is the subject matter. NATURAL ELEMENTS: those presumed to exist in certain contracts in relation to the nature of the contracts themselves. steps leading to perfection. like consent. – OFFER: proposal made by one party to another to enter into a contract. – STAGES IN THE LIFE OF A CONTRACT 1. Any made like dut is unenforceable unless ratified by person in whose name it was made. pledge. ARTICLE 1317 No one may contract in the name of another without authorization or right by law to representation. 2. Acceptance made by letter or telegram binds the offerer only at the time when he came into the knowledge.
ARTICLE 1320 Acceptance may be express or implied. ARTICLE 1322 An offer made through an agent is accepted once acceptance has been communicated to the guy who offered. the offer may be withdrawn anytime before acceptance. unless the contrary appears. insanity. – OPTION MONEY: money paid or promised to be paid in consideration for the option. you must accept the offer personally at this brothel to Charity. Advertiser is not bound to accept the highest or lowest bidder. civil interdiction. – In real life.] Like. – Basically a deadline for agreeing to a contract. ARTICLE 1324 When the offerer allows a certain period for acceptance. – May be oral or written. or inferable by act or conduct. ARTICLE 1326 Advertisements for bidders are invitations to make proposals.Must eventually be absolute. – The above must be at the time of contracting. – Agent is an extension of the guy in question. – Applies only if the offer was made through the agent in the first place. except when the option is founded upon a consideration. insolvency of either party before acceptance is conveyed. ARTICLE 1325 Advertisements of stuff for sale are not definite offers. – OPTION CONTRACT: allowance period for acceptance. manner of acceptance. [You're so malandi naman. ARTICLE 1328 Contracts entered into during a lucid interval are valid. [Di ko gets. the sheriff or auctioneer is bound to accept the highest bid. Not earnest money. but invitations to make offers. deafmutes who do not know how to write. Contracts agreed upon while you're drunk or . ARTICLE 1323 An offer becomes ineffective upon death. considered proof of perfection. – In judicial sales.] – OPTION PERIOD: period given within which the offer must be accepted. however.] – EXCEPTION: all details necessary to make a contract are already given. k. the insane/demented. kainis. in between her second and third customers. – OBLIGATION ON THEN unless it was a gratuitous act pala. place. → EARNEST MONEY: partial payment of purchase price. blah blah blah. the bidder is the one making an offer. as something paid or promised. ARTICLE 1327 The following cannot give consent to a contract: unemancipated minors. =)) ARTICLE 1321 Offerer fixes time. [Arte mo.
3. 8. 4. 5. Mistake in quality or amount. 4. . – HAHAHA saving your asses. ARTICLE 1330 A contract where consent is given through mistake. intimidation or threat. fraud or deceit. Conscious. intimidation. undue influence. Intelligent. 10. 2. violence. ARTICLE 1329 The incapacity declared in 1327 is subject to the modifications determined by law. 5. – VICES OF CONSENT: these make a contract voidable. Other people especially disqualified by law. – MISTAKES THAT DO NOT VITIATE CONSENT: 1. Contact is valid if minor between 18-21 voluntarily fulfills an obligation. mind. Identity or qualifications of a party. and is understood to be without prejudice. 3. Deaf and dumb who are can't read and write. and obligee gives it two thumbs up. Think Ellis Grey in Grey's Anatomy. fraud is voidable. 2. 3. – EXCEPTIONS TO 1327: 1. Must be for him. cannot take care of themselves slash manage their own property. okay. 7. Prodigals. not void. Contract is valid if minor is smarter than the other guy and gets him to believe in his legal capacity. undue influence. Voluntary. error or mistake. When necessities are sold to a minor who can't pay. 5. Whatta law. – Voidable. ARTICLE 1331 A mistake invalidates a contract only if it refers to the thing/object of the contract. 3. Mistakes in identity or qualifications of one of the parties is okay only if the identity and qualifications are actually involved in the contract. Married women is certain cases. 3. Hospitalized lepers. – LUCID INTERVAL: temporary period of sanity. 2. he must pay a reasonable price. etc. – CHARACTERISTICS OF CONSENT 1. violence or force. – MISTAKE/ERROR: false notion of a thing or a fact material to the contract. Those who by reason of age. Those of unsound mind [even if they have lucid intervals]. 9. Contract is valid if entered through a guardian or legal representative. disease. 6. 1. Minor may contract for life. Insolvents unless discharged. Error in regard to motives of the contract.under a hypnotic spell are voidable. – MORE DISQUALIFICATIONS 1. Husband and wife in sale of property to each other. 2. health and accident insurance. 2. People under the accessory penalty civil interdiction. 4.
mental weakness. and the person enforcing the contract must provide proof that terms have been fully explained. serious or irresistible force is employed. must be in bad faith. as when the parties are bound by . 2. ARTICLE 1338 There is fraud when. – PREREQUISITES 1. a party is induced to enter a contract which he would not have agreed to otherwise. the presumption is that he has the full knowledge of its content. To determine the degree of the intimidation. through insidious words. – UNDUE INFLUENCE: influence that overpowers the mind of a party as to destroy his free will. – When a people signs a document. spiritual relations between parties. Error must mutual. – If a party knew beforehand the doubt. – CAUSAL FRAUD: fraud committed by one party to secure the consent of the other.4. A threat to enforce one's claim through competent authority does not vitiate consent. sex and condition of the person shall be remembered. contingency or risk affecting the object of the contract. must have induced the consent of the other contracting party. ARTICLE 1333 There is no mistake if the party alleging it knew the doubt. – CIRCUMSTANCES TO CONSIDER: confidential. It must frustrate the parties. ARTICLE 1334 Mutual error as to the legal effect of an agreement when the real purpose of the parties is frustrated. financial distress. family. age. it must be serious. when there is a duty to reveal them. ignorance. There is intimidation when one of the contracting parties is compelled by fear of an imminent/grave evil to give consent. contingency. may vitiate consent. and mistake or fraud is alleged. proved by clear and convincing evidence. ARTICLE 1335 There is violence when in order to wrest consent. It must be as to the legal effect of an agreement. he can't claim mistake. 3. ARTICLE 1332 When one party is unable to read or if the contract is in a language not understood by him. risk affecting the object of the contract. ARTICLE 1337 There is undue influence when a person deprives the latter of reasonable freedom of choice. – Even if performed by a third party. Errors as regards to the incidents of a thing. ARTICLE 1336 Violence or intimidation shall annul the obligation. it must have been employed by only one of the contracting parties. – PREREQUISITES OF CAUSAL FRAUD: there must be misrepresentation or concealment. ARTICLE 1339 Failure to disclose facts.
are not in themselves fraudulent. okay. ARTICLE 1344 In order that fraud may make a contract voidable. ARTICLE 1341 A mere expression of an opinion is not fraud. ARTICLE 1342 Misrepresentation by a third person does not vitiate consent. . RELATIVE: contract entered is different from their true agreement. morals. The object is the obligation created. may be the object of a contract. ABSOLUTE: contract does not really exist. parties do not intend to be bound. ARTICLE 1343 Misrepresentation made in good faith is not fraudulent but may constitute error. All services not contrary to goody goody crap may be the object of a contract. ARTICLE 1346 An absolutely simulated contract is void. – KINDS OF SIMULATION: 1. Incidental fraud only obliges the person employing it to pay damages. – INCIDENTAL FRAUD: only renders the party who employs it liable because the fraud was not the principal inducement that led the other to give consent. – See 1338 for requisites of causal fraud. including future things. unless made by an expert and the other party relied on the former's knowledge. – OBJECT OF A CONTRACT: subject matter. 2. the latter when the parties conceal their true agreement. ARTICLE 1340 The usual exaggerations in trade. – SIMULATION OF A CONTRACT: act of deliberately deceiving others of the apperance of a contract. A relative simulation binds the parties to their real agreement. etc. All rights when not intransmissible may be the object of a contract. ARTICLE 1347 All things which are not outside the commerce of men. the normal goody goody crap. – Yay for advertising and comm theory and propaganda. ARTICLE 1348 Impossible things or services cannot be the object of contracts.confidential reasons. inexistent and void. ARTICLE 1345 Simulation of a contract may be absolute or relative. when the other party had an opportunity to know the facts. it should be serious and should not have been employed by both contracting parties. unless such misrepresentation has created substantial mistake and the same is mutual. Cannot prejudice a third person and not intended to be contrary to law. The former takes place when the parties do not intend to be bound at all. No contract may be entered into upon future inheritance except in cases expressly authorized by law. constitutes fraud. – CONCEALMEANT.
RELATIVE: when it arises from special circumstances of the case. the mere liability of the benefactor. In remuneratory ones. Must not be impossible. Must within the commerce of man. – CAUSE: purpose of the contracting parties for entering the contract. motive is not. Cause is an essential element of a contract. ARTICLE 1349 The object of every contract must be determinate as to its kind. 3. 3. without the need of a new contract. – ABSENCE/WANT OF CAUSE: no valid consideration for the contract. direct reason. . provided it is possible to determine the same. ARTICLE 1353 The statement of a false cause in contracts shall render them void. Cause is unlawful when contrary to goody goody crap.– KINDS OF OBJECT OF CONTRACT: Object certain is the second essential element of a valid contract-. 4. legally or physically. the service or benefit which is renumerated [paid for]. 2. parties are reciprocally obligated. – CAUSE vs. 4. RUNUMERATORY: reward the thing or service rendered. motive is remote. LEGAL: when object is contrary to goody goody crap. PHYSICAL: when the thing or service cannot exist or be performed. Cause is the immediate. 2. not in existence or capable of determination at the time of contract. if it should not be proved that they were founded upon another cause which is true and lawful. GRATUITOUS: basta the benefactor just gave it. that a person may eventually inherit. → Can legally be the subject of a commercial transaction. Cause is known to the other contracting party. – CAUSE vs. 3. a. must be lawful. – MOTIVE: personal reason a party has for entering a contract. Must be determinate or determinable without the need of a new contract between the parties. 2. The fact that the quantity is not determinate shall not be an obstacle to the existence of the contract. – FUTURE INHERITANCE: any property or right. indirect. An illegal cause affects contract validity. MOTIVE: 1. OBJECT: act in order to get object. Must be in existence or capable of coming into existence.may be things. – KINDS OF IMPOSSIBILITY 1. ARTICLE 1351 The motives of a party for entering a contract are not the same as the cause. ARTICLE 1352 Contracts without cause or with unlawful cause produce no effect. – CLASSIFICATIONS OF CONTRACT ACCORDING TO CAUSE 1. – REQUISITES OF A CAUSE: must exist when contract is entered into. In contracts of pure beneficence. an illegal motive does not. ARTICLE 1350 In onerous contracts the cause is understood to be the promise of a thing or service to each other. ONEROUS: promise of a thing or service. must be true and real. rights or services. – REQUISITES FOR OBJECTS 1. b. ABSOLUTE: when the act cannot be done in any case so that nobody can perform it. motive is not. 2.
– CESSION: formal giving up of rights. ARTICLE 1359 A party can ask for reformation of an instrument if true intention was not expressed or by reason of mistake. 3. ARTICLE 1356 Contracts shall be obligatory. 2. renunciation of hereditary rights or conjugal gain. written instrument does not express the true agreement or intention of the parties. it has to happen. ILLEGALITY OF CAUSE: there is a cause but it's illegal. as long as all essentials are there. ARTICLE 1354 Although the cause is not stated in the contract. repudiation. undue influence. the right of the parties cannot be exercised. the contracting parties may compel each other to observe that form upon contract perfection. 3. failure to express the true intention is due to mistake. – LESION: damage caused by the fact that the price is unjust or inadequate. fraud. – REFORMATION: remedy where a written instrument is amended or rectified so as to express to the real agreement or intention of the parties. – REQUISITES OF REFORMATION: 1. – THE FORM IS REQUIRED IN THE FOLLOWING CASES 1. (3) power to administer property or any other power for its object. Law requires contract to be in some form for convenience of parties or third parties. INFORMAL: any form. transmission. accident. ARTICLE 1357 If the law requires a document or special form. 2. inequitable conduct. Law requires contract to be valid. presume it exists and is lawful. But if the law requires that a contract be in some form in order to be valid/enforceable. In such cases. unless debtor says otherwise. Law requires to be enforceable/proved. inequitable conduct. – Assume a person will not part with property unless there is reason to. the creation. mistake. FALSITY OF CAUSE: contract may state a valid consideration but iz nat true. – FORM OF A CONTRACT: refers to the manner which a contract is executed. modification or extinguishment of real rights over immovable property. accident. unless there is fraud. meeting of the minds of parties. fraud. FORMAL: required by law to be in a specific form. – EXCEPTIONS: fraud. mistake. – CLASSIFICATIONS OF CONTRACTS: 1. undue influence. ARTICLE 1358 The following must appear in a public document: (1) acts and contract which have for their object. 2. (4) the cession of actions or right proceeding from an act appearing in a public document. ARTICLE 1355 Lesion or inadequacy of cause does not invalidate a contract. should all essential requisites for validity be present. . (2) the cession.– – – – INADEQUACY OF CAUSE: what do YOU think? :| FAILURE OF CAUSE: doesn't mean contract is void.
fraud. ARTICLE 1365 If two parties agree upon property. (3) When real agreement is void. accident. ARTICLE 1366 No reformation when: (1) simple donations when no condition is imposed. the courts can order reformation. he can't ask na for reformation. their present and future acts are the principal considerations. reformation of the instrument is proper. If the words are contrary to the intention of the parties. facts upon which relief by way of reformation is sought. 4. use the literal meaning of its stipulations. (2) Wills. the instrument states that the property is sold absolutely or with a right to repurchase. ARTICLE 1369 Procedure for reformation shall be governed by the Supreme Court. 5. Mistake must be of fact. ARTICLE 1360 Use the principles of the general law on reformation. ARTICLE 1361 When a mutual mistake of parties causes failure of instrument. ARTICLE 1363 Concealment of mistake in instrument by one party? The other can ask for reformation. inequitable conduct on the other? Mistaken party can ask for reformation. . intention of the parties for the win nalang. inequitable conduct. – INTERPRETATION OF A CONTRACT: determination of the meaning of the terms or words used by parties in a contract. 2. ARTICLE 1364 If the person drafting the instrument sucks. ARTICLE 1367 When a party asks to enforce the instrument. ARTICLE 1368 Heirs may ask for reformation. ARTICLE 1370 If the terms of a contract are clear and leave no doubt. Must be mutual. 3. Must be proved by clear and convincing evidence. clear and convincing evidence of mistake. ARTICLE 1362 Mistake by one party and fraud.4. – MUTUAL MISTAKE 1. REFORMATION ON. Must cause failure of instrument. ARTICLE 1371 In order to judge the intention of the contracting parties.
ARTICLE 1377 The interpretation of obscure words/stipulations shall not favour the party who caused the obscurity. Contract must be valid. Doubts still and parties' intention is unclear? Contract is null and void. ARTICLE 1375 Keep all words within the context of the contract. (3) Those undertaken in fraud of creditors when the latter cannot collect claims due to them. ARTICLE 1376 The usage or custom of the place shall be borne in mind in the interpretation of contract ambiguities. Onerous contract? Settle in favour of the greatest reciprocity of interests. Party asking to rescission must be able to return what he is obliged to restore. ARTICLE 1381 The following contracts are recissible: (1) those entered by guardians whose wards suffer lesion by more than ¼ of the value of the object. but by representatives. – RESCISSIBLE CONTRACTS: validly agreed upon because all essential elements exist but its enforcement would cause injustice. . There must be no other legal remedy to obtain reparation for damages. 7. ARTICLE 1374 Various stipulations of a contract must be interpreted altogether. they shall not be seen as different than what the parties intended. (2) Same as above. 2. – RESCISSION: remedy granted by law to the contracting parties in order to make amends for damages caused by a valid contract. go with the meaning where the contract can be carried out. (4) Those with objects under litigation. 6. 5. There must be lesion or pecuniary prejudice to one of the parties or a third party. 4. ARTICLE 1379 Principles of interpretation should also be observed in the construction of contract. Rescission must be based on a case provided by law. the period for filing rescission action must not have prescribed. ARTICLE 1378 Impossible to settle doubts? Least transmission of rights and interest shall prevail. – REQUISITES OF RESCISSION: 1.ARTICLE 1372 Even though a contract's terms are general. ARTICLE 1380 Contracts validly agreed upon may be rescinded in the cases established by law. Object of the contract must not be in the possession of a third party. 3. ARTICLE 1373 If some stipulation of any contract should admit of several meanings.
violence. they become absolutely valid and can never be annulled na. – VOIDABLE: those which possess all the essentials of a valid contract but yun nga. discovery of mistake or fraud. those four years begin once you take control. =)) – ANULMENT: remedy provided by law for the declaration of the inefficacy of a contract.. :)) They are valid and binding unless annulled. ARTICLE 1389 The action to claim rescission must happen within four years. =)) KAINIS.(5) All other contracts declared by law to be subject to rescission. ARTICLE 1387 All contracts by virtue of which the debtor alienates property by gratuitous title are presumed to have been entered into by fraud of creditors. ARTICLE 1384 Rescission shall only be to the extent of covering the damages caused. From the time: guardianship ceases. – KINDS OF VOIDABLE CONTRACTS: Voidable when.. violence. when the donor did not reserve sufficient property to pay all debts contracted before the donation. defect of the consent due to intimidation. intimidation. – “Insolvency” can just be incapability to fulfill obligation. undue influence. ARTICLE 1385 Rescission creates the obligation to return things. For those under guardianship or whatever. . ARTICLE 1392 Ratification extinguishes the action to annul a voidable contract. (2) When consent is vitated by mistake. how can you afford to give someone shit when you haven't even paid off your debts? ARTICLE 1388 Whoever acquires in bad faith the things alienated in fraud of creditors shall indemnify the latter for damages if it's impossible to return them. fraud. ARTICLE 1382 Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled at the time they were effected are also rescissible. Once ratified. ARTICLE 1386 Rescission shall not take place with contracts approved by the courts. LOOK UP NGA. ARTICLE 1383 Rescission happens only when there are no other means for reparation. undue influence ceases. look up. Can't be in someone else's possession. ARTICLE 1390 The following contracts are voidable to annullable even though there may have been no damage to the contracting parties: (1) when a party is capable of giving consent to a contract. – Basically. ARTICLE 1391 Period of action for annulment is four years.
ARTICLE 1395 Ratification does not require the conformity of the contracting party who has no right to bring the action for annulment. he only has to give back to the extent that he has benefitted. – Exception to 1398. ARTICLE 1402 If you can't restore what you have to return. . ARTICLE 1399 When the defect in the contract is due to incapacity of a party. ARTICLE 1400 If you have to return the object and you can't cause you lost it. you have to return the value of the thing + fruits of it. ARTICLE 1396 Ratification cleanses the contract from all its defects. – REQUISITES OF RATIFICATION 1. ARTICLE 1401 The action for annulment is extinguished when the object to be returned is lost through fraud or fault of the person who has a right to institute the proceedings. Injured party must have executed an act which necessarily implies an intention to waive his right. the value is the basis for damages. etc. – Right of action is based on the incapacity of any of the contracting parties. It “cleans” the contract. 2. like silence. ARTICLE 1394 Ratification may be effected by a guardian. 2. EXPRESS – oral or written. IMPLIED/TACIT – may take diverse forms. ARTICLE 1393 Ratification may be expressed expressly or tacitly. Such reason must have ceased. 3. It is understood that there is a tacit ratification if the person who has the right to invoke it acts in implication to waive his right. Must be knowledge of the reason which renders the contract voidable. etc. In obligations to render service. the contracting parties shall restore to each other the objects of the obligation. and you can't annul it anymore. – KINDS OF RATIFICATION 1. or acts showing approval of the contract.– RATIFICATION: you voluntarily say yes to defective crap in the contract which would not have been binding until you decided to do diz. there is no annulment. ARTICLE 1398 An obligation having been annulled. with interest from the same date. but not the bad people who did intimidation. ARTICLE 1397 The action for the annulment can be brought in by strangers. – Even due to fortuitous events.
. (5) Those which contemplate an impossible service. the parties may avail themselves of the right under article 1357. – VOID CONTRACTS: generally produce no effects whatsoever. contract is valid from inception. agreement for the sale of goods for less than PhP500. 2. special promise to answer for the debt. representation to the credit of a third person. agreement made in consideration of marriage other than a mutual promise to marry. ARTICLE 1407 If both parties cannot give consent. miscarriage of another. – KINDS OF UNENFORCEABLE CONTRACTS: see above. – UNENFORCEABLE CONTRACTS: cannot be enforced by law due to contract defects until cured or ratified. – INEXISTENT CONTRACTS: agreements that lack elements or do not comply with formalities essential in a contract. The following can be done upon authorization in writing: an agreement that can't be performed within a year of making it. (4) Those whose object is outside the commerce of men. No effects. authorize someone to. If ratification is made by the authorized for both parties. (2) Those which absolutely simulated. Right to set up defense of illegality can't be waived. ARTICLE 1405 Contracts infringing the State of Frauds are ratified by the failure to object and by the acceptance of benefits in the contract. – UNAUTHORIZED CONTRACTS: those entered in the name of another without authorization to. Can't be ratified. 3. (3) Those with a cause or object that did not exist at the time of transaction. a leasing agreement longer than a year. (7) Those expressly prohibited or declared void by law. ARTICLE 1404 Unauthorized contracts are governed by 1317. (3) Those where both parties can't give consent. ARTICLE 1408 Unenforceable contracts cannot be assailed by a third person. ARTICLE 1409 The following contracts are inexistent and void from the beginning: (1) those against the goody goody crap. – CHARACTERISTICS OF VOID/INEXISTENT CONTRACTS: 1.ARTICLE 1403 The following contracts are unenforceable unless ratified: (1) those entered in the name of another without authorization to. ARTICLE 1406 When a contract is enforceable under the Statute of Frauds and a public document is necessary for its registration in the Registry of Deeds. (2) Noncompliance with the State of frauds. default. (6) Those where the intention of the parties relative to the object is not clear. – One party lang? Voidable.
ARTICLE 1418 A laborer can demand compensation for service rendered beyond time limit. (2) If one party is at fault. and the act constitutes a criminal offense. The other may demand the return of what he gave without any obligation to comply on his end. – Secure its voidness judicially. The innocent one can just return his crap. They will instead be prosecuted. Can't give rise to a valid contract. with interest thereon from the date of payment. ARTICLE 1419 If a laborer accepts a wage lower than minimum. if the illegal terms can be separated from the legal ones. he can recover his crap. The defense of illegality is not available to third persons whose interests are not directly affected. – The legal parts are still enforceable. the whole contract is void and unenforceable. ARTICLE 1414 When money is paid or property delivered for an illegal purpose. he can recover the difference. the latter may be enforced. ARTICLE 1413 Interest paid in excess of interest allowed by the usury laws may be recovered by the debtor. ARTICLE 1417 If an object has a set price. any amount paid over that price is recoverable. – If indivisible and illegal. ARTICLE 1420 In case of a divisible contract. ARTICLE 1410 Action or defense for the declaration of its inexistence does not prescribe. 6. neither can recover what he was given by virtue of the contract or demand the performance of the other's undertaking. ARTICLE 1421 . 5. ARTICLE 1416 If the agreement is prohibited but not illegal. the contract may be rejected by one of the parties before it has been completed. there will no be no action against teach other. ARTICLE 1415 If one party in an illegal contract can't give consent. – Rule is applicable when one party is guilty. he cannot recover what he was given or ask for fulfillment of what has been promised to him. parties may recover what was paid or delivered. ARTICLE 1412 If the act above doesn't constitute a criminal offense: (1) If both parties are at fault.4. Action or defense for the declaration of its inexistence does not prescribe. ARTICLE 1411 When the contract is null because the cause or object is illegal.
ARTICLE 1422 A contract which is the direct result of a previous illegal contract is also void and inexistent. – Void and illegal? Third person can make epal if his interest is directly affected. – Voidable and unenforceable? Third person can't make epal. .The defense of illegality if contracts is not available to third persons whose interests are not directly affected.
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