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San Beda College of Law

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MEMORY AID IN CIVIL LAW

OBLIGATIONS AND CONTRACTS
I. OBLIGATIONS
OBLIGATION  A juridical necessity to give, to do, or not to do (Article 1156), one impressed with the character of enforceability.  Requisites: a. juridical or legal tie or efficient cause b. active subject (obligee or creditor) c. passive subject (obligor or debtor) d. fact, prestation or service constituting the object of the obligation  Requisites: i) it must be licit ii) it must be possible, physically & juridically iii) it must be determinate or determinable iv) it must have a possible equivalent in money 1. 2. 3. 4. 5. Law Contracts Quasi-contracts Delicts Quasi-delicts through mistake to another who has no right to demand it. QUASI-DELICTS  An act or omission by a person (tortfeasor) which causes damage to another giving rise to an obligation to pay for the damage done, there being fault or negligence but there is no pre-existing contractual relation between the parties (Article 2176).  Requisites: 1. There must be an act or omission; 2. There must be fault or negligence; 3. There must be damage caused to the plaintiff; 4. There must be a direct relation of cause and effect between the act or omission and the damage; and 5. There is no pre-existing contractual relation between the parties. NOTES:  The same negligent act or omission causing damage may produce civil liability arising from crime under Art. 100 of the RPC or create an action for quasi-delict under Article 2176.  While it is true that in order that a person may be liable for quasidelicts, there must be no preexisting contractual relationship between the parties, yet, “the act that breaks the contract may also be a tort.” (Air France vs. Carrascoso, 18 SCRA 155). Nature of Obligations 1. Personal Obligations - obligations to do a. Positive – obligation to do b. Negative – obligation not to do 2. Real Obligations - obligations to give a. Determinate or specific – object is particularly designated or

QUASI-CONTRACTS  Those juridical relations arising from lawful, voluntary and unilateral acts, by virtue of which the parties become bound to each other, based on the principle that no one shall be unjustly enriched or benefited at the expense of another. Principal Kinds of Quasi-contracts: 1. Negotiorum gestio - arises whenever a person voluntarily takes charge of the agency or management of the business or property of another without any power or authority from the latter. 2. Solutio indebiti - arises whenever a person unduly delivers a thing CIVIL LAW COMMITTEE

CHAIRPERSON: Romuald Padilla ASST.CHAIRPERSON: Vida Bocar, Joyce Vidad EDP: Alnaiza Hassiman, Dorothy Gayon  SUBJECT HEADS: Christopher Rey Marasigan (Persons and Family Relations), Alejandro Casabar(Property), Ma. Rhodora Ferrer(Wills and Succession), Ian Dominic Pua(Obligations and Contracts), Sha Elijah Dumama(Sales and Lease), John Stephen Quiambao(PAT), Christopher Cabigao(Credit Transactions), Ligaya Alipao(Torts and Damages), Anthony Purganan(LTD), Ma. Ricasion Tugadi (Conflict of Laws)

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2005 CENTRALIZED BAR OPERATIONS

physically segregated from all other of the same class b. Generic – object is designated merely by its class or genus c. Limited generic thing – when the generic objects are confined to a particular class, e.g. an obligation to deliver one of my horses (Tolentino, Volume IV, p. 91). PERSONAL vs. REAL RIGHT Personal Real
1. jus ad rem, a right enforceable only against a definite person or group of persons 2. right pertaining to the person to demand from another, as a definite passive subject, the fulfillment of a prestation to give, to do or not to do. 1. jus in re, a right enforceable against the whole world 2. right pertaining to a person over a specific thing, without a passive subject individually determined against whom such right may be personally enforced

if, under the circumstances of the case, the result of the specific performance of the contract would be harsh, inequitable, oppressive or result in an unconscionable advantage to the plaintiff. The courts may adjust the rights of the parties in accordance with the circumstances obtaining at the time of rendition of judgment, when these are significantly different from those existing at the time of generation of those rights. (Agcaoili vs. GSIS, G.R. No. 30056, August 30, 1988) OBLIGATIONS OF THE DEBTOR Determinate Generic
1. deliver the thing which he has obligated himself to give 2. take care of the thing with the proper diligence of a good father of a family 3. deliver all accessions and accessories of the thing even though they may not have been mentioned 4. pay damages in case of breach of the obligation by reason of delay, fraud, negligence or contravention of the tenor thereof 1. deliver the thing which is neither of superior nor inferior quality 2. pay damages in case of breach of the obligation by reason of delay, fraud, negligence or contravention of the tenor thereof

RIGHTS OF A CREDITOR Determinate
1. compel specific performance 2. recover damages in case of breach of the obligation, exclusive or in addition to specific performance 3. entitlement to fruits, interests from the time the obligation to deliver arises.

Generic

1. ask for performance of the obligation 2. ask that the obligation be complied with at the expense of the debtor

3. recover damages in case of breach of the obligation

EFFECTS OF BREACH Positive Personal Negative Personal Obligations Obligations
The creditor can: 1. have the obligation performed or executed at the expense of the obligor (except in cases where the personal qualifications of the debtor are taken into account in which case the only remedy is an action for damages) 2. ask that what has If the obligor does what has been forbidden him, the creditor can: 1. have it undone at the expense of the obligor; and 2. ask for damages

Principle of Balancing of Equities as Applied in Actions for Specific Performance  In decreeing specific performance, equity requires not only that the contract be just and equitable in its provisions, but that the consequences of specific performance likewise be equitable and just. The general rule is that this equitable relief will not be granted

2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT CHAIRPERSONS Maricel Abarentos (Over-all Chairperson), Ronald Jalmanzar (Over-all Vice Chair), Yolanda Tolentino(VC-Acads), Jennifer Ang(VC- Secretariat), Joy Inductivo (VC-Finance), Elaine Masukat (VC-EDP), Anna Margarita Eres (VC-Logistics). Jonathan Mangundayao (Political Law), Francis Benedict Reotutar (Labor Law), Romuald Padilla (Civil Law), Charmaine Torres (Taxation Law), Mark David Martinez (Criminal Law), Garny Luisa Alegre (Commercial Law), Jinky Ann Uy (Remedial Law), Jackie Lou Bautista (Legal Ethics)

Ma. or because of conflicting rights of 3rd persons NOTE: In either case. while he himself does not comply or is not ready to comply in a proper manner with what is incumbent upon him.CHAIRPERSON: Vida Bocar. 1. Ex re – obligation is to give b.San Beda College of Law 87 MEMORY AID IN CIVIL LAW been poorly done be undone 3. Where the effects of the act which is forbidden. Mora solvendi . Ian Dominic Pua(Obligations and Contracts). are definite in character. Joyce Vidad EDP: Alnaiza Hassiman. demand is useless as when obligor has rendered beyond his power to perform 4. contravention of the tenor of the obligation NOTE: debtor is liable for damages 2.debtor is unable to comply with his obligation because of fortuitous event NOTE: debtor is not liable for damages  3 Kinds: 1. There can be no delay in negative obligations (not to give/not to do). time is of the essence of the contract 3. default (mora) b. even if it is possible for the obligee to ask that the act be undone at the expense of the obligor. Ma. The creditor requires performance judicially or extra-judicially CIVIL LAW COMMITTEE CHAIRPERSON: Romuald Padilla ASST. Alejandro Casabar(Property). Ligaya Alipao(Torts and Damages). is guilty of: a.delay of the creditor to accept the delivery of the thing w/c is the object of the obligation 3. fraud (dolo) c. John Stephen Quiambao(PAT). Involuntary .debtor. Obligation is demandable and already liquidated 2. Christopher Cabigao(Credit Transactions). Ricasion Tugadi (Conflicts of Law) . in the performance of the obligation. Ex persona – obligation is to do 2. The debtor delays performance 3. negligence (culpa) d. in which case. The general rule is that fulfillment by both parties should be simultaneous except when different dates for the performance of obligation is fixed by the parties.delay of the parties or obligors in reciprocal obligation There must be a demand (judicial or extra-judicial) before delay may be incurred. obligation or law expressly so declares 2. Sha Elijah Dumama(Sales and Lease). Voluntary .  Demand is still necessary if their respective obligations are to be performed on separate dates FRAUD  Deliberate and intentional evasion of the fulfillment of an obligation DEFAULT or DELAY  Non-fulfillment of the obligation with respect to time  Requisites: 1. Compensatio morae . Anthony Purganan(LTD). Mora accipiendi . recover damages because of breach of the obligation Cases where the remedy granted under Article 1168 is not available: 1. consequences contrary to the object of the obligation will have been produced which are permanent in character 2. Dorothy Gayon  SUBJECT HEADS: Christopher Rey Marasigan (Persons and Family Relations). Where it would be physically or legally impossible to undo what has been undone because of the very nature of the act itself or because of a provision of law. It may be: a.  In reciprocal obligations one party incurs in delay from the moment the other party fulfills his obligation. Rhodora Ferrer(Wills and Succession). the remedy is to ask for damages. BREACH OF OBLIGATIONS 1.delay of the debtor to perform his obligation. there is acknowledgment of default NOTES:  There can be delay only in positive obligations (to give/to do).

Luzon Stevedoring. the aggravation of the injury resulting to the creditor (Lasam vs. FORTUITOUS EVENT  An event which could not be foreseen or which though foreseen was inevitable. Purpose is to evade the normal fulfillment of the obligation 3. diligence of a good father of a family Concept of Diligence of Good Father of a Family without fault of the injured person. Jonathan Mangundayao (Political Law).  Requisites: 1. Doctrine of Res Ipsa Loquitur as Applied in Negligence Cases  The thing or transaction speaks for itself  When the thing which caused injury. Charmaine Torres (Taxation Law). That agreed upon by the parties 2. Joy Inductivo (VC-Finance). 16 SCRA 448 and Republic vs. in committing or causing the negligent act. is under the exclusive control of the defendant and the injury is such as in the ordinary course of things does not occur if he having such control use proper care. Elaine Masukat (VC-EDP). Ronald Jalmanzar (Over-all Vice Chair).  That reasonable diligence which an ordinary prudent person would have done under the same circumstances 2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT CHAIRPERSONS Maricel Abarentos (Over-all Chairperson). Results in the non-fulfillment or breach of the obligation 4. debtor must be free from any participation in 5. Francis Benedict Reotutar (Labor Law). If both the contract and law are silent. Otherwise. cause is independent of the will of the debtor 2.88 2005 CENTRALIZED BAR OPERATIONS NOTE: Future fraud cannot be waived because it would result to illusory obligation. Yolanda Tolentino(VC-Acads). Jennifer Ang(VC. that required by law in the particular case 3. he is not guilty of negligence.Secretariat). it affords reasonable evidence. Romuald Padilla (Civil Law). Anna Margarita Eres (VC-Logistics). Smith. Present during the performance of a pre-existing obligation 2. had used reasonable care and vigilance which a man of ordinary prudence would have employed under the same situation. In the absence of stipulation. in the absence of explanation from the defendant. Diligence Required 1. Jackie Lou Bautista (Legal Ethics) . of the time and of the place NOTE: Negligence can be waived unless the nature of the obligation or public policy requires extraordinary diligence as in common carrier. Results in the vitiation of consent determined by this standard: If the defendant. the event must be unforeseeable or unavoidable 3. Garny Luisa Alegre (Commercial Law). occurrence must be such as to render it impossible for the debtor to fulfill his obligation in a normal manner 4. Gives rise to a right of an innocent party to annul the contract NEGLIGENCE  Omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the persons. 21 SCRA 279). Present during the time of birth or perfection of the obligation 2. Caltex. that the injury arose from defendant’s want of care (Africa vs. Purpose is to secure the consent of the other to enter into a contract 3. Gives rise to a right of the creditor to recover damages from the debtor Test of Negligence  The test of negligence can be Causal Fraud/dolo causante (Article 1338) 1. Jinky Ann Uy (Remedial Law). Mark David Martinez (Criminal Law). 4. 45 Phil. he is guilty. Incidental Fraud/dolo incidente (Article 1170) 1. 657) NOTE: It must not only be the proximate cause but it must be the ONLY and SOLE CAUSE.

to be subrogated to all the rights and actions of the debtor save those which are inherent in his person. purely personal right 2. Suspensive . 1165(3). When they are not transmissible by their very nature e. 2148 and 2159 of the Civil Code. Anthony Purganan(LTD). public policy and good customs 7.impugn all the acts w/c the debtor may have done to defraud them. Joyce Vidad EDP: Alnaiza Hassiman. John Stephen Quiambao(PAT).fulfillment of the condition results in the acquisition of rights arising out of the obligation 2. Possible .g. CONDITIONAL OBLIGATION  One whose effectivity is subordinated to the fulfillment or non-fulfillment of a future AND uncertain fact or event Kinds of conditions: 1. 2 When expressly declared by stipulation or contract 3 When the nature of the obligation requires the assumption of risk 4 When the obligor is in default or has promised to deliver the same thing to 2 or more persons who do not have the same interest [Article 1165(3)]. Potestative . 3. Christopher Cabigao(Credit Transactions). Dorothy Gayon  SUBJECT HEADS: Christopher Rey Marasigan (Persons and Family Relations). law.condition involves the omission of an act 10. 1268. EFFECT OF FORTUITOUS EVENT Determinate Generic Obligation Obligation obligation is extinguished obligation is not extinguished based on the rule that a genus never perishes (genus nunquam peruit) 1. Positive . 2147. Article 552(2). Negative . Casual . Ma. law.San Beda College of Law 89 MEMORY AID IN CIVIL LAW GENERAL RULE: No liability in case of fortuitous event. EXCEPTIONS: 1 When expressly declared by law NOTE: e. Ian Dominic Pua(Obligations and Contracts). Exhaustion of debtor’s property 2. Divisible . Resolutory . Mixed . 1942. NOTE: 2nd & 3rd remedies are subsidiary to the first Rights acquired by virtue of an obligation are transmissible in character CIVIL LAW COMMITTEE CHAIRPERSON: Romuald Padilla ASST. Ligaya Alipao(Torts and Damages).fulfillment of the condition depends partly upon chance and/or the will of a third person 6.condition involves the performance of an act 9. Accion pauliana .fulfillment of the condition depends upon the will of a party to the obligation 4. Ma. Sha Elijah Dumama(Sales and Lease).  REMEDIES OF CREDITOR TO PROTECT CREDIT: 1.condition is capable of realization according to nature.fulfillment of the condition depends upon chance and/or upon the will of a third person 5. Alejandro Casabar(Property). Impossible . the receipt must specify the installment for which payment is made. Not transmissible by operation of law PURE OBLIGATION  One whose effectivity or extinguishment does not depend upon the fulfillment or nonfulfillment of a condition or upon the expiration of a term or period and is demandable at once. When there is a stipulation of the parties that they are not transmissible 3. Accion subrogatoria . Ricasion Tugadi (Conflicts of Law) .condition is susceptible of partial realization 11.condition is not susceptible of partial realization PRINCIPLE UNDER ARTICLE 1176  Before the presumption that a prior installment had been paid may arise.CHAIRPERSON: Vida Bocar.fulfillment of the condition results in the extinguishments of rights arising out of the obligation 3.condition is not capable of realization according to nature. Rhodora Ferrer(Wills and Succession). public policy and good customs 8. Indivisible .g.

rights are not yet acquired. If the obligation is unilateral. Joy Inductivo (VC-Finance). In obligations to do or not to do. Jackie Lou Bautista (Legal Ethics) . Jennifer Ang(VC. When the obligation imposes reciprocal prestations upon the parties. such condition is valid. if not fulfilled.90 2005 CENTRALIZED BAR OPERATIONS 12. the court shall determine the retroactive effect or the conditions that has been complied with Constructive fulfillment of Suspensive Condition  The condition shall be deemed fulfilled when the obligor actually prevented the obligee from complying with the condition and such prevention must have been voluntary and willful in character.where there are several conditions. Anna Margarita Eres (VC-Logistics). If the fulfillment depends exclusively upon the will of the creditor. Charmaine Torres (Taxation Law). 5.where there are several conditions but only one must be realized Rule in Potestative Conditions a. but subject to the threat or danger of extinction 2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT CHAIRPERSONS Maricel Abarentos (Over-all Chairperson). the fruits & interests shall RESOLUTORY CONDITION 1. If the fulfillment of the potestative condition depends upon the sole will of the debtor.) b. obligation is extinguished 2. right of first refusal. obligation arises or becomes effective 2. Effects of Resolutory Condition 1. 2. Yolanda Tolentino(VC-Acads). Alternative . the demandability as well as the acquisition or effectivity of the rights arising from the obligation is suspended 2. if fulfilled. 4. The effects of a conditional obligation to give. Francis Benedict Reotutar (Labor Law). Conjunctive . the debtor shall appropriate the fruits & interests received. It renders the obligation illusory. rights are already acquired. NOTE: In case of simple potestative condition. once the condition has been fulfilled. If condition is not fulfilled. Jonathan Mangundayao (Political Law). 2. pre-existing obligation if obligation is divisible in simple or renumeratory donations in testamentary dispositions in case of conditions not to do an impossible thing be deemed to have been mutually compensated 5. Romuald Padilla (Civil Law). juridical relation is consolidated 3. the parties shall return to each other what they received including the fruits SUMMARY: SUSPENSIVE CONDITION 1. all of which must be realized 13. the right which the creditor has already acquired by virtue of the obligation is subject to a threat of extinction.g. Jinky Ann Uy (Remedial Law). (Applicable only to a suspensive condition and to an obligation which depends for its perfection upon the fulfillment of the potestative condition and not to a pre-existing obligation. the obligation arises or becomes effective 3. 1. Garny Luisa Alegre (Commercial Law). 3. no juridical relation is created 3. if fulfilled. the condition as well as the obligation itself is void.Secretariat). e. Mark David Martinez (Criminal Law). Before the fulfillment of the condition. Upon fulfillment of the condition. rights are consolidated. unless from the nature & circumstances it should be inferred that the intention of the persons constituting the same was different 6. they become absolute. if not fulfilled. but there is hope or expectancy that they will soon be acquired Effects of Suspensive Condition 1. Elaine Masukat (VC-EDP). shall retroact to the day of the constitution of the obligation 4. After the fulfillment of the condition. Ronald Jalmanzar (Over-all Vice Chair). Rule in Impossible Conditions They shall annul the obligation which depends upon them. 3. Before fulfillment of the condition. both the condition and obligation is valid.

not cumulative. in which case such stipulation must prevail. suspensive (ex die) – obligation becomes demandable only upon arrival of a day certain A Thing is Lost when it: 1. legally and physically CLASSIFICATION OF TERM OR PERIOD 1. Deterioration and Improvement in real obligations (during the pendency of the condition) 1. OBLIGATION WITH A PERIOD  Those whose demandability or extinguishment is subject to the expiration of a term or period  Requisites: 1.  Rescission will be ordered only where the breach is substantial as to defeat the object of the parties in entering into the agreement. without debtor’s fault obligation is extinguished b. Ma.creditor may choose between the rescission of the obligation and its fulfillment with indemnity for damages in either case 3. Ricasion Tugadi (Conflicts of Law) . However. Improvement a. When the debtor voluntarily returned the thing NOTES:  Article 1191 refers to judicial rescission. Rhodora Ferrer(Wills and Succession). the injured party may also seek rescission. 1. Ian Dominic Pua(Obligations and Contracts). John Stephen Quiambao(PAT). and which result in mutual relationships of creditor & debtor between the parties TACIT RESOLUTORY CONDITION with what is incumbent upon him. Dorothy Gayon  SUBJECT HEADS: Christopher Rey Marasigan (Persons and Family Relations). These remedies are alternative. with the payment of damages in either case. It does not apply if there is an express stipulation to rescind. Ma. should fulfillment become impossible. perishes 2. There is nothing in the law which prohibits the parties from entering into an agreement that violation of the terms of the contract would cause its cancellation without court intervention. there is a right on the part of the other to rescind the obligation. future 2. a. 135 SCRA 323). Joyce Vidad EDP: Alnaiza Hassiman. Ligaya Alipao(Torts and Damages). Deterioration a. without debtor’s fault impairment to be borne by the creditor b. If there is an express stipulation of automatic rescission 2. CIVIL LAW COMMITTEE CHAIRPERSON: Romuald Padilla ASST. Said stipulation is in the nature of facultative resolutory condition (Angeles vs.debtor pays damages 2. goes out of commerce 3. Calasanz. possible. certain 3. with debtor’s fault .debtor shall have no other right than that granted to a usufructuary NOTE: things Applies only to determinate RIGHT TO RESCIND (ART 1191) The right to rescind needs judicial approval. out of the same cause.  The right to rescind belongs exclusively to the injured party. Anthony Purganan(LTD). by the thing’s nature or by time .CHAIRPERSON: Vida Bocar. at the debtor’s expense . Christopher Cabigao(Credit Transactions). Loss a. Alejandro Casabar(Property).San Beda College of Law 91 MEMORY AID IN CIVIL LAW Effects of Loss.  The injured party may choose between fulfillment and rescission of the obligations. Sha Elijah Dumama(Sales and Lease). with debtor’s fault . disappears in such a way that its existence is unknown or it cannot be recovered RECIPROCAL OBLIGATIONS Those which are created or established at the same time.improvement shall inure to the benefit of the creditor b.

does not have any retroactive effect unless there is an agreement to the contrary 5. he becomes insolvent. Jinky Ann Uy (Remedial Law). Anna Margarita Eres (VC-Logistics). future and uncertain fact or event w/c may or may not happen 3. the existence of the obligation is not affected 3. unless he gives new ones equally satisfactory when debtor violates any undertaking. but from its nature and circumstances it can be inferred that a period was intended by the parties 2. conventional – stipulated by parties c. if the duration of the period depends upon the will of the debtor. Yolanda Tolentino(VC-Acads). Romuald Padilla (Civil Law). and ALTERNATIVE Obligations 1. the very existence of the obligation is affected When a period is designated for the performance or fulfillment of an obligation. Jackie Lou Bautista (Legal Ethics) . When it appears from the tenor of the obligation or other circumstances that the period has been established in favor of one or of the other. When court may fix period: 1. definite – date/time is know beforehand b. and when through fortuitous event they disappear. comprehends only one object or prestation which is due. However. indefinite – the date/time of day certain is unknown TERM 1. If the debtor binds himself when his means permit him to do so (Article 1180) NOTE: The only action that can be maintained is an action to ask the court to fix the duration of the term or period. legal – granted by law b. Mark David Martinez (Criminal Law). if the obligation does not fix a period. Ronald Jalmanzar (Over-all Vice Chair). When debtor loses right to make use of period: (IGIVA) 1. Charmaine Torres (Taxation Law). interval of time w/c must necessarily come. unless he gives guaranties or securities for the debt (the insolvency need not be judicially declared) 2.Secretariat). it is presumed to have been established for the benefit of both creditor and debtor. The fulfillment of the obligation itself cannot be demanded until after the court has fixed the period for compliance therewith. 47 SCRA 65). comprehends several objects or prestations which are due but may be complied with by the delivery or performance of only one of them 2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT CHAIRPERSONS Maricel Abarentos (Over-all Chairperson). Jonathan Mangundayao (Political Law). Reason for Fixing the Period (ART 1197)  There can be no possibility of any breach of contract or failure to perform the obligation unless the period is fixed by courts. and such period has arrived. when by his own act he has impaired said guaranties or securities after their establishment. a. Garny Luisa Alegre (Commercial Law). Francis Benedict Reotutar (Labor Law).exerts an influence upon the time of demandability or extinguishment of an obligation 4. when he does not furnish to the creditor the guaranties or securities he promised 3. but it may be complied with by the delivery of another object or performance of CONDITION 1. when after the obligation has been contracted. Elaine Masukat (VC-EDP). has retroactive effect 5. such technicality need not be adhered to when a prior and separate action would be a mere formality and would serve no other purpose than to delay (Borromeo vs.92 2005 CENTRALIZED BAR OPERATIONS b. when it is left exclusively to the will of the debtor. in consideration of which the creditor agreed to the period or 4. fact or event w/c is future and uncertain 2. a. exerts an influence upon the very existence of the obligation itself 4. although it may not be known when 3. Joy Inductivo (VC-Finance). when it is left exclusively to the will of the debtor. judicial – fixed by courts 3. when debtor attempts to abscond FACULTATIVE Obligations 1. interval of time w/c is future & certain 2. Jennifer Ang(VC. CA. resolutory (in diem) – arrival of day certain terminates the obligation 2.

CHAIRPERSON: Vida Bocar. Dorothy Gayon  SUBJECT HEADS: Christopher Rey Marasigan (Persons and Family Relations). Rhodora Ferrer(Wills and Succession). 3. choice takes effect only upon communication of the choice to the other party and from such time the obligation ceases to be alternative. 2. Ma. the concurrence or collective act of all the creditors. If 1 of the things is lost through a fortuitous event. the creditor may claim any of those subsisting. culpable loss of any object due will give rise to liability to debtor b. If there are 2 or more creditors. If there are 2 or more debtors. although each for his own share. Christopher Cabigao(Credit Transactions). is also necessary for the enforcement of the obligation. Alejandro Casabar(Property). Anthony Purganan(LTD). If right of choice belongs to the creditor a. or the price of that which. Effect of breach – If one of the joint debtors fails to comply with his undertaking. creditor cannot hold the debtor liable for damages because the debtor can still comply with his obligation. has disappeared with a right to damages c. 1. choice pertains only to debtor 2. the choice by the creditor shall fall upon the price of any 1 of them. Ian Dominic Pua(Obligations and Contracts). Ma. 2. through the fault of the former. the fulfillment of or compliance with the obligation requires the concurrence of all the debtors. JOINT INDIVISIBLE OBLIGATIONS 1. when expressly stated that there is solidarity when the law requires solidarity when the nature of the obligation requires solidarity 4.San Beda College of Law 93 MEMORY AID IN CIVIL LAW another prestation in substitution 2. John Stephen Quiambao(PAT). Sha Elijah Dumama(Sales and Lease). Ricasion Tugadi (Conflicts of Law) . Consequently. fortuitous loss of all prestations will extinguish the obligation 3. or that which remains if only 1 subsists JOINT DIVISIBLE OBLIGATIONS  Each creditor can demand for the payment of his proportionate share of the credit. If the loss of 1 of the things occurs through the fault of the debtor. EFFECT OF LOSS OF OBJECT OF OBLIGATION: 1. culpable loss obliges the debtor to deliver substitute prestation without liability to debtor 4. unlawful or w/c could not have been the object of the obligation. fortuitous loss extinguishes the obligation 3. also with indemnity for damages JOINT AND SOLIDARY OBLIGATIONS Obligation is presumed joint if there is concurrence of two or more debtors and/or creditors. Joyce Vidad EDP: Alnaiza Hassiman. although each for his own share.  A joint creditor cannot act in representation of the other creditors while a joint debtor cannot be compelled to answer for the acts or liability of the other debtors. If through a fortuitous event debtor cannot be held liable for damages b. while each debtor can be held liable only for the payment of his proportionate share of the debt. 2. If right of choice belongs to debtor a.  The debtor cannot choose those prestations or undertakings which are impossible. the debtor shall perform the obligation by delivering that which the creditor should choose from among the remainder. Ligaya Alipao(Torts and Damages). If all the things are lost through the fault of the debtor. choice may pertain to creditor or even third person NOTES:  In alternative obligations. the obligation can be enforced only by proceeding against all of the debtors. the obligation can no CIVIL LAW COMMITTEE CHAIRPERSON: Romuald Padilla ASST. If 1 or more but not all of the things are lost or one or some but not all of the prestations cannot be performed due to the fault of the debtor.

plurality of subjects is indispensable 3. but also all the rights which correspond to the other creditors. the relation between the other creditors not substituted and the debtor or debtors is maintained. If it is beneficial and the creditor who effected the novation is able to secure performance of the obligation. Joy Inductivo (VC-Finance). refers to the legal tie or vinculum juris & consequently to the subjects or parties of the obligation 2. Ronald Jalmanzar (Over-all Vice Chair). 4. Elaine Masukat (VC-EDP). Jonathan Mangundayao (Political Law). the solidary creditor who effected the novation is liable for the acts of the new debtor in case the is deficiency in performance or in case damages are incurred by the other solidary creditors as a result of the substitution. Anna Margarita Eres (VC-Logistics).94 2005 CENTRALIZED BAR OPERATIONS longer be fulfilled or performed. If the novation is effected by subrogating a third person in the rights of the solidary creditor responsible for the novation. when there is liability on the part of the debtors because of the breach. refers to the prestation which constitutes the object of the obligation 2. Active solidarity  solidarity of creditors  each creditor is empowered to exercise against the debtor not only the rights which correspond to him. obligation is converted into 1 of indemnity for damages because of breach. plurality of subjects is not required 3.Secretariat). but also in the benefits 3. Innocent joint debtors shall not contribute to the indemnity beyond their corresponding share of the obligation. with the consequent obligation to render an accounting of his acts to such creditors  creates a relationship of mutual agency among solidary creditors 2. Mark David Martinez (Criminal Law). If the novation is prejudicial. INDIVISIBILITY 1. Jackie Lou Bautista (Legal Ethics) . This is without prejudice to the right of other creditors who have not caused the confusion or compensation to be reimbursed to the extent that their rights are diminished or affected. it is converted into one of indemnity for damages. Jennifer Ang(VC. 2. If the novation is effected by substituting another person in place of the debtor. Passive solidarity  solidarity of debtors  liability of each debtor for the payment of the entire obligation. If the confusion or compensation is total. what is left is the ensuing liability SOLIDARITY 1. Garny Luisa Alegre (Commercial Law). the solidary creditor who effected the novation shall reimburse the others for damages incurred by them 2. the solidarity among the debtors remains KINDS OF SOLIDARITY 1. with the consequent right to demand reimbursement from the others for their corresponding shares once payment has been made 3. the obligation is extinguished. Yolanda Tolentino(VC-Acads). assignee is third person – cocreditors and debtors are not bound by the assignment Effect of Novation upon Solidary Obligation 1. in case of breach. Effect of Compensation and Confusion upon Solidary Obligation 1. not only in the obligation. Jinky Ann Uy (Remedial Law). Charmaine Torres (Taxation Law). the rules regarding application of payment shall apply. If the confusion or compensation is partial. the others shall not be liable for his share. assignee is co-creditor – no violation of Article 1213 because there can be no invasion of the personal or confidential relationship 2. Consequently. Mixed solidarity  solidarity among creditors and debtors 2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT CHAIRPERSONS Maricel Abarentos (Over-all Chairperson). Francis Benedict Reotutar (Labor Law). Effect of insolvency of a debtor – If one of the joint debtors should be insolvent. such creditor shall be liable to the others for the share which corresponds to them. indivisibility of the obligation is terminated Effect of Assignment by Solidary Creditor Without Consent of Others 1. Romuald Padilla (Civil Law).

otherwise. John Stephen Quiambao(PAT). If the remission is for the benefit of one of the debtors and it covers only a part of his share in the obligation. Sha Elijah Dumama(Sales and Lease). Anthony Purganan(LTD). Ligaya Alipao(Torts and Damages). INDIVISIBLE OBLIGATIONS  Prestation is not susceptible of partial performance. 2. Defenses personal to him or pertaining to his own share 3. If it is not due to the fault of the solidary debtors. If the loss or impossibility is due to the fault of one of the solidary debtors or due to a fortuitous event after one of the solidary debtors had already incurred in delay. 2. the obligation is converted into an obligation of indemnity for damages but the solidary character of the obligation remains. If the remission covers the entire obligation. The creditor cannot be compelled partially to receive the prestation in which the obligation consists. the obligation is totally extinguished and the entire juridical relation among the debtors is extinguished all together. neither may the debtor be required to make partial payments. Effect of Remission upon Solidary Obligation 1. Defenses derived from the very nature of the obligation 2. 3. Joyce Vidad EDP: Alnaiza Hassiman. When the obligation is in part liquidated and in part unliquidated.CHAIRPERSON: Vida Bocar. Whole or partial extinguishment of debt 2. the essence of the obligation will be changed NOTES:  Divisibility or indivisibility of the obligation refers to the performance of the prestation and not to the thing which is the object thereof. Right to recover against co-debtor 3. Dorothy Gayon  SUBJECT HEADS: Christopher Rey Marasigan (Persons and Family Relations). 1. Defenses personal to the others. the obligation is extinguished. Ricasion Tugadi (Conflicts of Law) . Christopher Cabigao(Credit Transactions). If the remission is for the benefit of one of the debtors and it covers his entire share in the obligation. Effect of Payment by Solidary Debtor 1. Defenses available to a Solidary Debtor 1. but only as regards that part of the debt for w/c the latter are responsible DIVISIBLE OBLIGATIONS  Those which have as their object a prestation which is susceptible of partial performance without the essence of obligation changed. When the obligation expressly stipulates the contrary. 2. Ian Dominic Pua(Obligations and Contracts). Ma.  Intention of parties should be taken into account to determine whether obligation is divisible or not. CIVIL LAW COMMITTEE CHAIRPERSON: Romuald Padilla ASST. Alejandro Casabar(Property). his character as a solidary debtor is not affected. and 3. When the different prestations constituting the objects of the obligation are subject to different terms and conditions. he is completely released from the creditors but is still bound to his codebtors. The creditor causing the confusion or compensation is obliged to reimburse the other creditors b. Right to recover interest from time the obligation becomes due Effect of Loss or Impossibility of Performance 1.San Beda College of Law 95 MEMORY AID IN CIVIL LAW for reimbursement within each group: a. Rhodora Ferrer(Wills and Succession). The debtors benefited by the extinguishments of the obligation are obliged to reimburse the debtor who made the confusion or compensation possible. OBLIGATIONS WITH A PENAL CLAUSE  One to which an accessory undertaking is attached for the purpose of insuring its performance by virtue of which the obligor is bound to pay a stipulated indemnity or perform a stipulated prestation in case of breach. Ma.

Yolanda Tolentino(VC-Acads). 2. Romuald Padilla (Civil Law). Anna Margarita Eres (VC-Logistics). condonation or remission of the debt 5. must be performed or observed Persons who may pay the obligation: 1. knowing its incompleteness or irregularity & w/out expressing any protest or objection. Joy Inductivo (VC-Finance). in certain exceptional cases. in any other manner. NOTES:  The debtor cannot exempt himself from the performance of the principal obligation by paying the stipulated penalty unless when the right has been expressly reserved for him. the debtor himself or his legal representative 2. 2. ULE: The penalty fixed by the parties is a compensation or substitute for damages in case of breach. MODES OF EXTINGUISHMENT OF OBLIGATIONS (LFC3NARP2) 1. Jackie Lou Bautista (Legal Ethics) . 2.  The creditor cannot demand the fulfillment of the principal obligation and the satisfaction of the stipulated penalty at the same time unless the right has been clearly granted him. Mark David Martinez (Criminal Law). when made by a third person who has an interest in the fulfillment of the obligation. when there is a stipulation to the contrary.Secretariat). When the obligation has been substantially performed in good faith. when there is a stipulation to the contrary. Charmaine Torres (Taxation Law). When the debt is in part liquidated and in part unliquidated. when the debtor is sued for refusal to pay the agreed penalty. 1. and 3. If the principal obligation has been irregularly complied with. To insure the performance of the obligation. fulfillment of resolutory condition 3. of an obligation. Francis Benedict Reotutar (Labor Law). as the case may be.96 2005 CENTRALIZED BAR OPERATIONS  Purpose of Penalty: 1. as the object of the prestation. any third person Creditor is not bound to accept payment or performance by a third person. Jonathan Mangundayao (Political Law). loss of the thing due 2. Elaine Masukat (VC-EDP). and 3. Garny Luisa Alegre (Commercial Law). 1. and 4. 1. compensation 4. 2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT CHAIRPERSONS Maricel Abarentos (Over-all Chairperson). Jinky Ann Uy (Remedial Law). to liquidate the amount of damages to be awarded to the injured party in case of breach of the principal obligation (compensatory). there must be proof of actual damages. 2. to punish the obligor in case of breach of the principal obligation (punitive). annulment 8. and 3. service or forbearance. 3. payment or performance Payment or Performance  Means not only the delivery of money but also the performance. When the obligee accepts performance. novation 7. Integrity of Payment A debt shall not be understood to have been paid unless the thing or service in which the obligation consists has been completely delivered or rendered. 2. Ronald Jalmanzar (Over-all Vice Chair). When penalty may be reduced 1. rescission 9. prescription 10. When there is an express stipulation. confusion or merger of rights of the creditor and debtor 6. when debtor is guilty of fraud NOTE: Article 1228 does not apply to these exceptions. If the penalty is iniquitous or unconscionable even if there has been no performance. Identity of Payment  requires that the very thing. Jennifer Ang(VC. If the principal obligation has been partly complied with.

Obligation to Deliver a Generic Thing  If the quality and circumstances have not been stated. Any person authorized to receive it.  If the creditor ratifies the payment to the third person. Such benefit to the creditor is presumed in the following cases:  If after the payment.  Section 52. provided that it has redounded to the benefit of the creditor. Rhodora Ferrer(Wills and Succession).  Legal tender of the Philippines would be all notes and coins issued by the Central Bank.CHAIRPERSON: Vida Bocar. can recover entire amount paid b.  Applies only to contractual obligations  Requisites: a. he can recover only insofar as the payment has been beneficial to the debtor. when it has been impaired through the fault of the creditor. Payment in cash . 2. R. when it has been cashed or b. Ricasion Tugadi (Conflicts of Law) . The decrease in the value of the currency could not have been reasonably foreseen by the parties or beyond their contemplation at the time the obligation was established . then in the currency which is legal tender in the Philippines. 2. LEGAL TENDER  Such currency which may be used for the payment of all debts. b. Joyce Vidad EDP: Alnaiza Hassiman. or 3.San Beda College of Law 97 MEMORY AID IN CIVIL LAW Rights of 3rd person who paid the obligation: 1. John Stephen Quiambao(PAT).  If by the creditor’s conduct. Christopher Cabigao(Credit Transactions). If payment is made to a person other than those enumerated. Ma. There must be a declaration of such extraordinary inflation or CIVIL LAW COMMITTEE CHAIRPERSON: Romuald Padilla ASST. it shall not be valid. Rules in Monetary Obligations: 1. legal tender up to P20 Extraordinary inflation or deflation  unusual or beyond the common fluctuation in the value of currency. 2.A. the creditor cannot demand a thing of superior quality. To whom payment must be made: 1. Ligaya Alipao(Torts and Damages). If payment was made without knowledge or against the will of the debtor. No. 25c and above. if it is not possible to deliver such currency. His successor in interest. whether private or public. If payment was made with knowledge and consent of the debtor: a. the debtor has been led to believe that the third person had authority to receive the payment. Dorothy Gayon  SUBJECT HEADS: Christopher Rey Marasigan (Persons and Family Relations). 10c and below. provided that it was made in good faith. not considered legal tender and may be refused by the creditor. which the parties could not have reasonably foreseen or which was manifestly beyond their contemplation at the time the obligation was established.must be made in the currency stipulated. the third person acquires the creditor’s rights. Payment made to a 3rd person. The person in whose favor the obligation has been constituted. can be subrogated to all the rights of the creditor. legal tender up to P50 2. 2. Ma. neither can the debtor deliver a thing of inferior quality. 7653 1. Ian Dominic Pua(Obligations and Contracts). Payment made to the possessor of the credit. Sha Elijah Dumama(Sales and Lease). 1. It shall only produce the effect of payment: a. The kind of currency which a debtor can legally compel a creditor to accept in payment of a debt in money when tendered by the debtor in the right amount. Payment in check or other negotiable instrument not considered payment. Anthony Purganan(LTD). Alejandro Casabar(Property).

Without such declaration. existence of a money obligation b. CA. and d. plurality of debts b. debtor must be partially or relatively insolvent 3. c. Jennifer Ang(VC. all of the debts must be due. the creditors cannot demand an increase. Payment by Cession d. amount paid by the debtor must not be sufficient to cover the total amount of all the debts. plurality creditors of 2. Jonathan Mangundayao (Political Law). 2. payment shall be applied to all of them proportionately. (Ramos vs. one creditor 2. Elaine Masukat (VC-EDP). partial or relative insolvency of the debtor c. payment shall be made at the place where the thing might be at the time the obligation was constituted. Place stipulated by the parties. alienation to the creditor of a property by the debtor with the consent of the former c. and debtors a decrease. b. the debt which is most onerous to the debtor. the payment shall be made at the domicile of the debtor. The right to designate the debt to which the payment shall be applied primarily belongs to the debtor. there must be 2 or more debts of the same kind. Joy Inductivo (VC-Finance).Secretariat). universality of property of debtor is what is ceded 2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT CHAIRPERSONS Maricel Abarentos (Over-all Chairperson).  Requisites: a. among those which are due. Tender of payment Consignation Legal Application of Payment (ART1254) 1. Ronald Jalmanzar (Over-all Vice Chair). not necessarily in state of financial difficulty 3. b. acceptance of the cession by the creditors DATION IN PAYMENT 1. satisfaction of the money obligation of the debtor c. No stipulation and the obligation is to deliver a determinate thing. Jackie Lou Bautista (Legal Ethics) . Special Forms of Payment: a. If neither the debtor nor the creditor makes any application of payment. of what is due to or from them. Anna Margarita Eres (VC-Logistics). Mark David Martinez (Criminal Law). Francis Benedict Reotutar (Labor Law). Jinky Ann Uy (Remedial Law). Application of Payment  Designation of the debt to which the payment must be applied when the debtor has several obligations of the same kind in favor of the same creditor. thing delivered is considered as equivalent of performance and a. the latter may obtain payment of their credits. CA. Yolanda Tolentino(VC-Acads). If the debtor does not avail of such right and he accepts from the creditor a receipt in which the application is made. Romuald Padilla (Civil Law). vs. If the debts due are of the same nature and burden. Application of payment b.  Requisites: a. Charmaine Torres (Taxation Law). Dation in Payment c. shall be deemed to have been satisfied.98 2005 CENTRALIZED BAR OPERATIONS deflation by the Bangko Sentral. 2. In any other case. there must be only 1 debtor & only 1 creditor. 275 SCRA 167 and Mobil Oil Phils. Garny Luisa Alegre (Commercial Law). Payment by Cession  Debtor abandons all of his property for the benefit of his creditors in order that from the proceeds thereof. except: if there’s stipulation to the contrary. PAYMENT BY CESSION 1. Dation in Payment (DACION EN PAGO)  Delivery and transmission of ownership of a thing by the debtor to the creditor as an accepted equivalent of the performance of the obligation. 180 SCRA 651) Place of payment 1. or if it cannot be inferred from other circumstances. 3. or application of payment is made by the party for whose benefit the term has been constituted.  Requisites: a.

 If tender is made by means of a check. and 3. Tender of Payment and Consignation Tender of Payment  Manifestation of he debtor to the creditor of his decision to comply immediately with his obligation.CHAIRPERSON: Vida Bocar. b. or does not appear at the place of payment 2. The consignation having been made. Ian Dominic Pua(Obligations and Contracts). Consignation shall produce effects of payment only if there is a valid tender of payment.San Beda College of Law 99 MEMORY AID IN CIVIL LAW efficacy of the consignation. and e.  Special Requisites: a. Article 1249 is not applicable. Christopher Cabigao(Credit Transactions). creditor incapacitated to receive payment at the time it is due 3. the obligation is extinguished. proved or implied from the conduct of the creditor 4. Ricasion Tugadi (Conflicts of Law) . If the creditor contests the validity or efficacy of the consignation or if the creditor is not interested or unknown or is absent. 2. The thing is lost before the debtor has incurred in delay. Ligaya Alipao(Torts and Damages). c. The consignation of the thing due must first be announced to the persons interested in the fulfillment of the obligation. LOSS OF THE THING DUE In Determinate Obligations to Give Obligation is extinguished. If the creditor accepts the thing or amount deposited without contesting the validity or CIVIL LAW COMMITTEE  It is the consignation which constitutes a form of payment and must follow.  Requisites: 1. after the tender of payment has been refused or because of circumstances which render direct payment to the creditor impossible or inadvisable. when without just cause creditor refuses to give a receipt NOTES: 4. Consignation  Deposit of the object of the obligation in a competent court in accordance with the rules prescribed by law. The thing is lost without the fault of the debtor. the interested parties shall also be notified thereof. merely releases debtor for net proceeds of things ceded or assigned. 2. creditor is absent or unknown. John Stephen Quiambao(PAT). Joyce Vidad EDP: Alnaiza Hassiman. Alejandro Casabar(Property). Ma. CHAIRPERSON: Romuald Padilla ASST.  A valid tender of payment has the effect of exempting the debtor from payment of interest and/or damages. Ma. when two or more persons claim the right to collect 4. d. when the title of the obligation has been lost 5. If the debtor complied with all the requisites. Sha Elijah Dumama(Sales and Lease). payment extinguishes obligation to the extent of the value of the thing delivered as agreed upon.  Effects of consignation: 1. The thing which is lost is determinate. unless there is contrary intention d. the result is a litigation. the obligation is extinguished. The debt sought to be paid must be due. supplement or complete the tender of payment in order to discharge the obligation. Dorothy Gayon  SUBJECT HEADS: Christopher Rey Marasigan (Persons and Family Relations). such tender is valid because it is an exercise of a right. There must be a valid and unconditional tender of payment or any of the causes stated by law for effective consignation without previous tender of payment exists. Anthony Purganan(LTD). Consignation shall be made by depositing the things due at the disposal of judicial authority. 1.  It is the preparatory act and extrajudicial in character.  It is the principal act and judicial in character. Rhodora Ferrer(Wills and Succession).

Yolanda Tolentino(VC-Acads). It must be accepted by the debtor 2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT CHAIRPERSONS Maricel Abarentos (Over-all Chairperson). In case of generic obligations whose object is a particular class or group with specific or determinate qualities (Limited Generic Obligations) In Obligations to Do Obligation is extinguished when prestation becomes legally or physically impossible. as a result of which it is extinguished in its entirety or in that part or aspect of the same to which the remission refers. Ronald Jalmanzar (Over-all Vice Chair). in whole or in part.Secretariat).  It is the gratuitous abandonment by the creditor of his right. Thus. Elaine Masukat (VC-EDP). and 7. The event must not be due to the act of any of the parties. If the loss or impossibility was due to a fortuitous event. the performance by the debtor of the obligation undoubtedly becomes impossible. 336) Effect of Loss on Reciprocal Obligations  First view (Tolentino. Failure of performance is imputable to the debtor. In this case. The debtor is released from liability but he cannot demand the prestation which has been stipulated for his benefit. when the nature of the obligation requires the assumption of risk. 6. obligor is liable even for fortuitous event. Charmaine Torres (Taxation Law). Effect of Relative Impossibility or Doctrine of Unforeseen Events (ART 1267)  When the service has become difficult as to be manifestly beyond the contemplation of the parties. Garny Luisa Alegre (Commercial Law). 2. He who gives nothing has no reason to demand anything. the injured party may ask for rescission under Article 1191 plus damages. Joy Inductivo (VC-Finance).  Requisites: 1. It must be gratuitous b. 4. p. and 4. when by law. 3. pp.  Second View (JBL Reyes) – The loss or impossibility of performance must be due to the fault of the debtor. The event or change in circumstances could not have been foreseen at the time of the execution of the contract. obligor is liable even for fortuitous event. the debtor must indemnify the creditor for the damages suffered by the latter. Jennifer Ang(VC. the counter-prestation is also extinguished. when the debtor promised to deliver the same thing to two or more persons who do not have the same interest. the obligor may also be released therefrom. Francis Benedict Reotutar (Labor Law). Jonathan Mangundayao (Political Law). when the loss of the thing is due partly to the fault of the debtor. 2. Romuald Padilla (Civil Law). renounces the enforcement of the obligation. when the loss of the thing occurs after the debtor incurred in delay. when by stipulation. CONDONATION OR REMISSION OF THE DEBT  An act of pure liberality by virtue of which the obligee. The contract is for a future prestation. 337-338) – If an obligation is extinguished by the loss of the thing or impossibility of performance through fortuitous events. Volume IV. 3. It makes the performance of the contract extremely difficult but not impossible. Principle of Subjective Impossibility  When there is no physical or legal loss but the thing object of the obligation belongs to another. Mark David Martinez (Criminal Law). 5. Anna Margarita Eres (VC-Logistics). without receiving any price or equivalent. Jinky Ann Uy (Remedial Law). Volume IV.100 2005 CENTRALIZED BAR OPERATIONS 1. when the debt of a certain and determinate thing proceeds from a criminal offense In Generic Obligations to Give Obligation is not extinguished because the genus of a thing cannot perish. (Tolentino. Jackie Lou Bautista (Legal Ethics) .  Requisites: a. the other party is still obliged to give the prestation due to the other.

Must be pleaded to be effectual Kinds of Compensation 1. one person where qualities of debtor and creditor are merged CIVIL LAW COMMITTEE CHAIRPERSON: Romuald Padilla ASST. are principal creditors & principal debtors of each other (except in case of guarantor. Ian Dominic Pua(Obligations and Contracts). Dorothy Gayon  SUBJECT HEADS: Christopher Rey Marasigan (Persons and Family Relations).San Beda College of Law 101 MEMORY AID IN CIVIL LAW c. The requisites prescribe by law for compensation are different from those prescribed by law for payment. CONFUSION OR MERGER OF RIGHTS  Merger of the characters of the creditor and the debtor in one and the same person by virtue of which the obligation is extinguished. Article 1280). both debts must be liquidated & demandable. Judicial – takes effect by judicial decree 4. there must be at least two obligations 2. Compensation 1. Christopher Cabigao(Credit Transactions). obligations arising from criminal offenses 5. Ligaya Alipao(Torts and Damages). Rhodora Ferrer(Wills and Succession). same kind and quality 2. Voluntary – agreed upon by the parties 3. Ricasion Tugadi (Conflicts of Law) . they must be of the same kind & quality. partial complete and indivisible Compensation 1. Ma.CHAIRPERSON: Vida Bocar. and f. The obligation demandable must be 2. Requires 2 debts must consist in money or if fungibles. Facultative – when it can be claimed by one of the parties who. both debts must be due. b. who. it is 4. Joyce Vidad EDP: Alnaiza Hassiman. Takes effect by operation of law act of the parties 3. Anthony Purganan(LTD). in their own right. has the right to object to it Debts not subject to Compensation: 1. 2. e. Capacity to give give and to and to acquire is acquire is not essential necessary 4. it must be complete & definite COMPENSATION  Extinguishment in the concurrent amount of the obligation of those persons who are reciprocally debtors and creditors of each other. there must be 2 parties. or if the things due are fungibles. two persons who are mutual debtors and creditors of each other Compensation Payment 1. Both debts must be liquidated 3. Not necessary 2. Sha Elijah Dumama(Sales and Lease). d. Capacity to 3. b. Takes effect by 2. c. Does not require that debts be liquidated 3. that it must take place in the person of either the principal creditor or the principal debtor. only one obligation NOTE: Express condonation or remission must comply with the formalities of donation. that the characters of creditor & debtor must be in the same person. As a rule. both debts must consist in money. and c.  Requisites: a.  Requisites: a. Need not be pleaded Counterclaim 1. Alejandro Casabar(Property). there must be no retention or controversy commenced by 3rd persons over either of the debts & communicated in due time to the debtor. debts arising from contracts of commodatum 3. compensation must not be prohibited by law. certain obligations in favor of government Confusion 1. claims for support due by gratuitous title 4. As a rule. Legal – takes effect by operation of law 2. debts arising from contracts of deposit 2. Ma. John Stephen Quiambao(PAT). however.

agreement of the parties to the new obligation. If they cannot stand together. consequently. Volume IV.when it is declared in unequivocal terms that the old obligation is extinguished by a new one w/c substitutes the same. Requisites: a. resulting in its extinguishment or modification. Romuald Padilla (Civil Law).Secretariat). Delegacion – the creditor can sue the old debtor only when the insolvency was prior to the delegation and publicly known or when the old debtor knew of such insolvency at the time he delegated the obligation. Anna Margarita Eres (VC-Logistics). Expromision – the new debtor’s insolvency or nonfulfillment of the obligation shall not revive the original debtor’s liability to the creditor whether the substitution is effected with or without the knowledge or against the will of the original debtor. Yolanda Tolentino(VC-Acads). Mixed 2. Ronald Jalmanzar (Over-all Vice Chair). Charmaine Torres (Taxation Law). Expromision . or by subrogating a third person in the rights of the creditor. As to its form/constitution a. b. Mark David Martinez (Criminal Law).refers to the change either in the cause. 1. 367) NOVATION  Substitution or change of an obligation by another. It differs from conventional compensation because it is unilateral while the latter depends upon the agreement of both parties. either by changing its object or principal conditions. Jinky Ann Uy (Remedial Law). there is incompatibility. Francis Benedict Reotutar (Labor Law). Kinds: As to its essence a. object or principal conditions of the obligations b. Facultative Compensation  This is compensation which can be set up only at the option of a creditor. The latter can renounce his right to oppose the compensation and he himself can set it up. Objective/Real . IAC. or by substituting another in place of the debtor. Consent of the creditor to the substitution 2. Delegacion . validity of the new obligation. Subjective/Personal . Requisites: a. Jennifer Ang(VC. there is novation.  Requisites: a. Jackie Lou Bautista (Legal Ethics) . there is no novation. 2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT CHAIRPERSONS Maricel Abarentos (Over-all Chairperson). If they can stand together. and d. Jonathan Mangundayao (Political Law). with the concurrence of the new debtor.refers to the substitution of the person of the debtor or to the subrogation of a 3rd person in the rights of the creditor c. Garny Luisa Alegre (Commercial Law). 162 SCRA 753). consequently. Consent of the new debtor c.when the old & new obligation are incompatible w/ each other on every point. (Tolentino. Joy Inductivo (VC-Finance). each having its own independent existence. Elaine Masukat (VC-EDP). Test of Incompatibility  Whether or not the old and new obligations can stand together. Forms of Substitution of Debtors: 1. c. there is no incompatibility. Initiative for substitution must emanate from the new debtor b. extinguishment of the old obligation. Express . Initiative for substitution must emanate from the old debtor b.102 2005 CENTRALIZED BAR OPERATIONS NOTE: Taxes are not subject to set-off or legal compensation because the government & taxpayers are not mutually creditors & debtors of each other (Francia vs.effected with the consent of the creditor at the instance of the new debtor even without the consent or even against the will of the old debtor. when legal compensation cannot take place because of want of some legal requisites for the benefit of the creditor. a previous valid obligation. Acceptance by the creditor Effect of insolvency of new debtor 1. b.effected with the consent of the creditor at the instance of the old debtor. p. Implied . 2.

Cause or Consideration 2. to give something or to render some service (Article 1305). Ricasion Tugadi (Conflicts of Law) . Do ut des . 1. Obligatory Force and Consensuality (ART 1315) 3. CONVENTIONAL SUBROGATION 1. debtor’s consent is required 3. Alejandro Casabar(Property). 2. Even without debtor’s knowledge. a person interested in the fulfillment of the obligation pays without prejudice to the effects of confusion as to the latter’s share. CIVIL LAW COMMITTEE CHAIRPERSON: Romuald Padilla ASST. or an addition of such elements to an obligation. barter or exchange (Article 1638).e.CHAIRPERSON: Vida Bocar. the new creditor and the debtor.  Kinds: a. takes effect upon notification 4. Ma. governed by Arts. with respect to the other. debtor’s consent is not required 3. Autonomy (ART 1306) ASSIGNMENT OF RIGHTS 1. Legal – takes place without agreement but by operation of law because of certain acts (Article 1302). 3. by rule governing the most analogous nominate contracts and by the customs of the place.I give that you do c. do ut des in no longer an innominate contract. a. Conventional – takes place by agreement of the parties. CONTRACTS CONTRACT  A contract is a meeting of minds between two persons whereby one binds himself. unless otherwise expressed by the parties. i. It has already been given a name of its own. Sha Elijah Dumama(Sales and Lease). Facio ut facias . 1624 to 1627 2. transmission of right of the creditor to third person without modifying or extinguishing the obligation 4. Nominate contracts  Those which have their own distinctive individuality and are regulated by special provisions of law. Ligaya Alipao(Torts and Damages). Legal subrogation cannot be presumed. Accidental – those which exist only when the parties expressly provide for them for the purpose of limiting or modifying the normal effects of the contract. Characteristics of Contracts: (ROMA) 1. defects and vices in the old obligation are cured 5. A third person not interested in the obligation pays with the express or tacit approval of the debtor. Ian Dominic Pua(Obligations and Contracts). governed by Arts. will not result in its extinguishment. 2. Consent b.I do that you do NOTE: According to some authorities. Do ut facias . Joyce Vidad EDP: Alnaiza Hassiman. extinguishes the obligation and gives rise to a new one II. Anthony Purganan(LTD). John Stephen Quiambao(PAT).  Elements 1. Rhodora Ferrer(Wills and Succession). this kind of subrogation requires the intervention and consent of 3 persons: the original creditor.San Beda College of Law 103 MEMORY AID IN CIVIL LAW NOTE: A change in the incidental elements of. Essential – those without which there can be no contract. without debtor’s knowledge. 1300 to 1304 2.  Regulated by the stipulations of the parties. Dorothy Gayon  SUBJECT HEADS: Christopher Rey Marasigan (Persons and Family Relations). defects and vices in the old obligation are not cured 5. as far as the debtor is concerned. Innominate contracts  Those which lack individuality and are not regulated by special provisions of law. Natural – those derived from the nature of the contract and ordinarily accompany the same. Object or Subject Matter c. Facio ut des .I do that you give d.I give that you give b. Creditor pays another creditor who is preferred. Christopher Cabigao(Credit Transactions). by the general provisions of the Civil Code on obligations and contracts. takes effect upon moment of novation or subrogation  Kinds of Subrogation 1. Ma. Mutuality (ART 1308) 4. Relativity (ART 1311) 2. or 3.

471). Jennifer Ang(VC. the favorable stipulation should not be conditioned or compensated by any kind of obligation whatever. CONSENT  Manifested by the concurrence of the offer and acceptance upon the thing and the cause which are to constitute the contract. Romuald Padilla (Civil Law). usage and law. not the whole of the contract. Test of Beneficial Stipulation – the fairest test to determine whether the interest of a 3rd person in a contract is a stipulation pour atrui or merely an incidental interest is to rely upon the intention of the parties as disclosed by their contract. according to their nature may be in keeping with good faith.104 2005 CENTRALIZED BAR OPERATIONS Relativity Contracts take effect only between parties. spontaneous and free from all vices of consent d. knowledge of contract by third person. 1. not a mere incidental benefit or interest. neither of the contracting parties bears the legal representative or authorization of the third person. (ART 1306) Consensuality  Contracts are perfected by mere consent and from that moment. Leonard.Secretariat). Mark David Martinez (Criminal Law). or (b) to determine whether or not the contract shall be fulfilled. Jackie Lou Bautista (Legal Ethics) . Existence of a valid contract. Determine whether the contracting parties desired to tender him such an interest (Uy Tam vs. cause. 3. Elaine Masukat (VC-EDP). and c. Francis Benedict Reotutar (Labor Law). When a third person induces a party to violate contract (ART1314)  Requisites: a. the third person must have communicated his acceptance to the obligor before its revocation. 30 Phil. Autonomy  The parties are free to stipulate anything they deem convenient provided that they are not contrary to law. Third persons who come into possession of the object of the contract creating real rights 4. Contracts entered into in fraud of creditors Mutuality  The contract must bind both parties. and e.  Requisites: a. b. its validity or compliance must not be left to the will of one of them. the terms and conditions of the contract must be intelligent. 2. Anna Margarita Eres (VC-Logistics). Garny Luisa Alegre (Commercial Law). Manifestation of the conformity of the contracting parties c. interference by third person without legal justification or excuse. Yolanda Tolentino(VC-Acads). Legal capacity of the contracting parties b. Jonathan Mangundayao (Political Law). Charmaine Torres (Taxation Law). good customs. the stipulation must be a part. Ronald Jalmanzar (Over-all Vice Chair). the contracting parties must have clearly and deliberately conferred a favor upon a third person. morals. their assigns and heirs. d. Joy Inductivo (VC-Finance). c. the parties are bound not only to the fulfillment of what has been expressly stipulated but also to all consequences which. b. The said conformity must be real and not simulated or fictitious 2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT CHAIRPERSONS Maricel Abarentos (Over-all Chairperson).  Requisites: a. (ART 1308)  The contract cannot have any stipulation authorizing one of the contracting parties (a) to determine whether or not the contract shall be valid. Jinky Ann Uy (Remedial Law). The parties’ conformity to the object. Stipulation pour atrui stipulation in favor of a third person. public order and public policy.

p.  It must me absolute. Ma.. Insane or demented persons.  An offer made inter praesentes must be accepted IMMEDIATELY. NOTE: Acceptance may be revoked before it comes to the knowledge of the offeror.  A qualified acceptance constitutes counter-offer. Rhodora Ferrer(Wills and Succession). John Stephen Quiambao(PAT). Offers are not interrelated – single acceptance of each offer results in a perfected contract unless the offeror has made it clear that one is dependent upon the other and acceptance of both is necessary. while transactions under the Code of Commerce use the Manifestation Theory (it is perfected from the moment the acceptance is declared or made).San Beda College of Law 105 MEMORY AID IN CIVIL LAW Offer  A proposal made by one party to another to enter into a contract.  It must be certain or definite. unless the contract was entered into during a lucid interval 3. CA. health or accident insurance taken on the life of the minor 2. NOTES:  Consensual contracts are perfected from the moment there is a manifestation of concurrence between the offer and the acceptance regarding the object and the cause. Ma. # 125761. donation of real property). Joyce Vidad EDP: Alnaiza Hassiman.. Dorothy Gayon  SUBJECT HEADS: Christopher Rey Marasigan (Persons and Family Relations). 2003)  Contracts under the Civil Code generally adhere to the Cognition Theory (contract is perfected from the moment the acceptance comes to the knowledge of the offeror). If the CIVIL LAW COMMITTEE CHAIRPERSON: Romuald Padilla ASST. (Malbarosa vs. It is necessary .e. Ian Dominic Pua(Obligations and Contracts). Ricasion Tugadi (Conflicts of Law) parties intended that there should be an express acceptance.CHAIRPERSON: Vida Bocar. Christopher Cabigao(Credit Transactions). plus a new offer which is contained in the amplification. Alejandro Casabar(Property). (Tolentino. Minors EXCEPTIONS:  Contracts where the minor is estopped to raise minority as a defense through his own misrepresentation  Contracts for necessaries  Contracts by guardians or legal representatives  Voluntary fulfillment of a natural obligation provided that the minor is between 18-21 years of age  Contracts of life. G.  Real contracts like deposit. such prescribed form being an essential element (i. 452) Rule on Complex offers 1. the contract will be perfected only upon knowledge by the offeror of the express acceptance by the offeree of the offer. complete and intentional. Acceptance  Manifestation by the offeree of his assent to the terms of the offer. Deaf-mutes who do not know how to read and write Effect of Misrepresentation of Age by the Minor  Misrepresentation by minors with regard to their age when entering into a contract shall bind them in the sense that they are estopped subsequently from impugning the validity of the contract on the ground of minority.R. 2. April 30.  Solemn contracts are those which requires compliance with certain formalities prescribed by law. Amplified Acceptance  Under certain circumstances. Volume IV. et al. Anthony Purganan(LTD). NOTE: Offer/proposal may be withdrawn so long as the offeror has no knowledge of acceptance by offeree. Offers are interrelated – contract is perfected if all the offers are accepted. PERSONS INCAPACITATED TO GIVE CONSENT: 1. An acceptance which is not made in the manner prescribed by the offeror is NOT EFFECTIVE BUT A COUNTER-OFFER which the offeror may accept or reject. pledge and commodatum requires delivery of object for perfection. Sha Elijah Dumama(Sales and Lease). Ligaya Alipao(Torts and Damages). a mere amplification on the offer must be understood as an acceptance of the original offer.

Joy Inductivo (VC-Finance). VICES OF CONSENT (VIMFU) 1. good customs. Jinky Ann Uy (Remedial Law). or to those conditions which have principally moved one or both parties to enter into the contact. descendants or ascendants. Jennifer Ang(VC.when in order to wrest consent. to give his consent. good customs.106 2005 CENTRALIZED BAR OPERATIONS that the misrepresentation must be active (e. Impossible things or services 6. Garny Luisa Alegre (Commercial Law). public order or public policy 5. right or service which is the subject matter of the obligation arising from the contract.when a person takes improper advantage of his power over the will of another. public order or public policy. morals. Cause should be true 2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT CHAIRPERSONS Maricel Abarentos (Over-all Chairperson). except in cases expressly authorized by law 4. Mistake . not merely constructive. It must be licit or not contrary law. Jonathan Mangundayao (Political Law). serious or irresistible force is employed. Reluctant Consent  A contract is valid even though one of the parties entered into it against his wishes and desires or even against his better judgment. A relatively simulate contract binds the parties to their real agreement. Cause should be in existence at the time of the celebration of the contract b.g. Undue influence . Absolute – when the contracting parties do not intend to be bound by the contract at all. Anna Margarita Eres (VC-Logistics). Objects which are not possible of determination as to their kind CAUSE  The immediate. without them. Charmaine Torres (Taxation Law). 2. Francis Benedict Reotutar (Labor Law).  Requisites under Article 1334: a. Romuald Padilla (Civil Law). Yolanda Tolentino(VC-Acads). Mistake must be with respect to the legal effect of an agreement b. depriving the latter of a reasonable freedom of choice.Secretariat). Relative – when the contracting parties conceal their true agreement. 5. morals. It must be w/in the commerce of man b. Contracts are also valid even though they are entered into by one of the parties without hope of advantage or profit. Intimidation . Ronald Jalmanzar (Over-all Vice Chair).when 1 of the contracting parties is compelled by a reasonable & well-grounded fear of an imminent & grave evil upon his person or property. Jackie Lou Bautista (Legal Ethics) . except under Article 1334. Cause should be licit or lawful c. Fraud . Violence . Thus. Elaine Masukat (VC-EDP). Real purpose of the parties must have been frustrated. It must be possible d. an absolutely simulated contract is VOID. or upon the person or property of his spouse. Mistake must be mutual c. 252) Simulation of Contracts 1. OBJECT  The thing.  Must be mistake of fact and not of law. the other is induced to enter into a contract which. 2. through insidious words or machinations of 1 of the contracting parties. Services which are contrary to law. when minors specifically stated in a contract that they were of age). he would not have agreed to. 15 Phil. Things which are outside the commerce of men 2. Future inheritance.when. when it does not prejudice a 3rd person and is not intended for any purpose contrary to law.should refer to the substance of the thing which is the object of the contract. Intransmissible rights 3. 4.  Requisites: a. Hongkong and Shanghai Bank.  Requisites a. public order or public policy c. Mark David Martinez (Criminal Law). 3. morals. It must be determinate as to its kind Things which Cannot be the Object of Contract 1. (Martinez vs. direct and most proximate reason which explains and justifies the creation of obligation. good customs.

Anthony Purganan(LTD). 2. meeting of the minds to the contract b.San Beda College of Law 107 MEMORY AID IN CIVIL LAW  Rules: 1. Joyce Vidad EDP: Alnaiza Hassiman. Ian Dominic Pua(Obligations and Contracts). Ligaya Alipao(Torts and Damages). the mere liberality of the donor or benefactor. fraud. In remuneratory contracts. When the agreement is void. unless (a) there is fraud. clear and convincing proof of mistake. the service or benefit w/c is remunerated. Absence of cause 2. Lesion FORM OF CONTRACTS Contracts shall be obligatory. accident. In onerous contracts. Failure of cause 3. 4. accident. the prestation of promise of a thing or service by the other. Ma. When the law requires that a contract be in some form in order that it may be valid CIVIL LAW COMMITTEE CHAIRPERSON: Romuald Padilla ASST. 1. provided all the essential requisites for their validity are present. or inequitable conduct c. (Article 1357)  Contracts under Art 1358 which are required to be in some specific form is only for the convenience of parties and does not affect its validity and enforceability as between them. 3. true intention is not expressed in the instrument by reason of mistake. for each contracting party.COMMERCE ACT) provides that the formal requirements to make contracts effective as against third persons and to establish the existence of a contract are deemed complied with provided that the electronic document is unaltered and can be authenticated as to be usable for future reference. John Stephen Quiambao(PAT). relative simulation. in whatever form they may have been entered into. no subsequent reformation can be asked. Ma. Dorothy Gayon  SUBJECT HEADS: Christopher Rey Marasigan (Persons and Family Relations). unless the parties show that there is another cause which is true and lawful does not invalidate the contract. the loan from which it derives its life and existence. In contracts of pure beneficence. RA 8792 (E. the cause is understood to be. EFFECT the contract confers no right and produces no legal effect does not render the contract void the contract is null and void the contract is void. Illegality of cause 4. that is. Alejandro Casabar(Property). or inequitable conduct Instances when there can be no reformation: 1. Ricasion Tugadi (Conflicts of Law) . Falsity of cause 2. CAUSE 1. Rhodora Ferrer(Wills and Succession). REFORMATION OF INSTRUMENTS  Requisites: a. In accessory contracts (mortgage or pledge). Wills.CHAIRPERSON: Vida Bocar. relative simulation. 2. When one of the parties has brought an action to enforce the instrument. fraud. When the law requires that a contract be in some form in order that it may be enforceable NOTES:  Parties may compel each other to comply with the form required once the contract has been perfected. 3. Christopher Cabigao(Credit Transactions). Simple unconditional donations inter vivos. the cause is identical with the cause of the principal contract. Sha Elijah Dumama(Sales and Lease). or (b) when the parties intended a donation or some other contract 5. mistake or undue influence.

4. those agreed upon in representation of absentees. Action for the declaration or nullity or inexistence or defense of nullity or inexistence does not prescribe Valid and enforceable until they are annulled by a competent court Action for annulment or defense of annulability may prescribe 4. 3. if there was total or partial performance of the unenforceable contract under No. Jennifer Ang(VC. What contracts are rescissible 1. Ronald Jalmanzar (Over-all Vice Chair). Cannot be ratified 6. by reason of lesion or economic prejudice may be rescinded in cases established by law. to obtain reparation for the damages suffered by him d. or capacity of both parties not cured by prescription Cannot be enforced by a proper action in court Corresponding action for recovery. Jackie Lou Bautista (Legal Ethics) . 2. Francis Benedict Reotutar (Labor Law). Assailed not only by a contracting party but even by a third person whose interest is directly affected 7. the party asking for rescission must have no other legal means c. if the latter suffer lesion by more than ¼ of the value of the things which are subject thereof. Elaine Masukat (VC-EDP). Defect is caused by lack of essential elements or illegality VOIDABLE Defect is caused by vice of consent RESCISSIBLE Defect is caused by injury/ damage either to one of the parties of to a 3rd person Valid and enforceable until they are rescinded by a competent court Action for rescission may prescribe UNENFORCEABLE Defect is caused by lack of form. Assailed directly or collaterally Assailed directly collaterally or Assailed directly or collaterally RESCISSIBLE CONTRACTS  Contracts validly agreed upon but. Anna Margarita Eres (VC-Logistics). those which refer to things under litigation if they have been entered into by the defendant without the knowledge and approval of the litigants and the court. all other contracts especially declared by law to be subject to rescission. Joy Inductivo (VC-Finance). Mark David Martinez (Criminal Law). Jonathan Mangundayao (Political Law). 1 or 3 of Article 1403 may prescribe Not cured prescription Can be ratified Assailed only by a contracting party by 2.108 2005 CENTRALIZED BAR OPERATIONS COMPARATIVE TABLE OF DEFECTIVE CONTRACTS VOID 1. those undertaken in fraud of creditors when the latter cannot in any manner claim what are due them. Romuald Padilla (Civil Law). Yolanda Tolentino(VC-Acads). the person demanding rescission must be able to return whatever 2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT CHAIRPERSONS Maricel Abarentos (Over-all Chairperson). authority. Charmaine Torres (Taxation Law). the contract must be rescissible b. as a general rule produce any legal effect 3. those entered into by guardians where the ward suffers lesion of more than ¼ of the value of the things which are objects thereof. Not cured prescription by Cured by prescription Can be ratified Assailed only by contracting party a Cured by prescription Need not be ratified Assailed not only by a contracting party but even by a third person who is prejudiced or damaged by the contract Assailed directly only 5. Jinky Ann Uy (Remedial Law). payments made in a state of insolvency on account of obligations not yet enforceable  Requisites: a.Secretariat). Garny Luisa Alegre (Commercial Law). Do not. and 6. 5.

2. It applies only to reciprocal obligation 4. Evidence of indebtedness or complete insolvency 5. Transfer made between father & son. the time the violence. b. Those where one of the parties is incapable of giving consent to a contract 2. 4. undue influence or fraud Causes of extinction of action to annul: 1. Failure of the vendee to take exclusive possession of all the property Rescission in Article 1191 1. Non-performance by the other party is not important. 3. Consideration of the conveyance is inadequate or fictitious. Anthony Purganan(LTD). Rhodora Ferrer(Wills and Succession). There are 5 grounds to rescind. intimidation. 5. Ma. PRESCRIPTION  the action must be commenced within 4 years from: a. or c. intimidation or undue influence ends. It is a principal action retaliatory in character. CIVIL LAW COMMITTEE CHAIRPERSON: Romuald Padilla ASST. Only a party to the contract may demand fulfillment or seek the rescission of the contract. 6. VOIDABLE CONTRACTS  Those in which all of the essential elements for validity are present. 2. Registration constitutes constructive notice to the whole world. It applies to both unilateral and reciprocal obligations. Christopher Cabigao(Credit Transactions). 3. It is a subsidiary remedy. the time the mistake or fraud is discovered. The only ground is non-performance of one’s obligation/s or what is incumbent upon him. Its purpose is to cancel the contract. 5. 6. Transfer was made by a debtor after a suit has been begun and while it is pending against him. the time the incapacity ends. there must be knowledge of the reason which renders the contract voidable b. Ricasion Tugadi (Conflicts of Law) . Those where the consent is vitiated by mistake. Alejandro Casabar(Property). the things w/c are the object of the contract must not have passed legally to the possession of a 3rd person acting in good faith f. Court cannot grant extension of time for fulfillment of the obligation. (Carantes vs. 4.San Beda College of Law 109 MEMORY AID IN CIVIL LAW he may be obliged to restore if rescission is granted e. RATIFICATION  Requisites: a. What contracts are voidable 1. Sha Elijah Dumama(Sales and Lease). 6.CHAIRPERSON: Vida Bocar. 2. CA. Dorothy Gayon  SUBJECT HEADS: Christopher Rey Marasigan (Persons and Family Relations). although the element of consent is vitiated either by lack of capacity of one of the contracting parties or by VIMFU. Ligaya Alipao(Torts and Damages). such reason must have ceased and c. violence. Even a 3rd person who is prejudiced by the contract may demand the rescission of the contract. the injured party must have executed an act which expressly or impliedly conveys an intention to waive his right Rescission Proper in Article 1381 1. 3. Sale upon credit by an insolvent debtor. the action for rescission must be brought w/in the prescriptive period of 4 years BADGES OF FRAUD: 1. John Stephen Quiambao(PAT). thus allowing partial rescission of the contract. Its purpose is to seek reparation for the damage or injury caused. where there is present any of the above circumstances 7. Transfer of all his property by a debtor when he is financially embarrassed or insolvent. Ian Dominic Pua(Obligations and Contracts). Joyce Vidad EDP: Alnaiza Hassiman. 76 SCRA 514) 2. Ma. NOTE: Discovery of fraud must be reckoned to have taken place from the time the document was registered in the office of the register of deeds. Court may fix a period or grant extension of time for the fulfillment of the obligation.

INEXISTENT CONTRACTS  Those where one or some or all of the requisites essential for the validity of a contract are absolutely lacking. Those whose cause. Agreements not to be performed within one year from the making thereof. the said contracts shall be unenforceable. and 5. 6. Agreement for the sale of goods. those which do not comply with the Statute of Frauds Agreements within the scope of the Statute of Frauds (EXCLUSIVE LIST): 1. Ratification of contracts in violation of the Statute of Frauds 1. NOTE: This does not refer to the original or independent promise of the debtor to his own creditor. Agreements for the sale of real property or interest therein. Garny Luisa Alegre (Commercial Law). but without interest thereon. Jonathan Mangundayao (Political Law).00. public order or public policy. and 7. otherwise. Mark David Martinez (Criminal Law). Special promise to answer for the debt. Acceptance of benefits under these contracts VOID CONTRACTS  Those where all of the requisites of a contract are present but the cause.  The contracts/agreements under the Statute of Frauds require that the same be evidenced by some note. It refers rather to a collateral promise. Ronald Jalmanzar (Over-all Vice Chair). good customs. default or miscarriage of another. morals good customs. memorandum or writing. but the person obliged to return the same can be held liable only for the value of the thing at the time of the loss. Those where the intention of the parties relative to the principal object of the contract cannot be ascertained. the contract can still be annulled. public order or public policy. Agreement in consideration of marriage other than a mutual promise to marry. and 3. Those whose object is outside the commerce of men. those entered into in the name of another by one without or acting in excess of authority. 4. Jennifer Ang(VC. Francis Benedict Reotutar (Labor Law). subscribed 2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT CHAIRPERSONS Maricel Abarentos (Over-all Chairperson). Contracts of lease for a period longer than one year. 3. 4. Representation as to the credit of a third person. object or purpose is contrary to law. Romuald Padilla (Civil Law). those where both parties are incapable of giving consent.110 2005 CENTRALIZED BAR OPERATIONS 3. Anna Margarita Eres (VC-Logistics). 2. 2. NOTE: If the object is lost through fortuitous event. Elaine Masukat (VC-EDP). Jackie Lou Bautista (Legal Ethics) . 5. What contracts are inexistent 1. or contract itself is prohibited or declared void by law. NOTE: The principle of In Pari Delicto is applicable only to void contracts and not as to inexistent contracts. What contracts are void 1. Those which contemplate an impossible service. Yolanda Tolentino(VC-Acads). at a price not less than P500. By loss of the thing which is the object of the contract through fraud or fault of the person who is entitled to annul the contract. etc. object or purpose is contrary to law. 2. Failure to object to the presentation of oral evidence to prove such contracts 2. not to those that are partially or completely fulfilled. Charmaine Torres (Taxation Law). UNENFORCEABLE CONTRACTS  Those which cannot be enforced by proper action in court unless they are ratified What contracts are unenforceable 1. Those whose cause or object did not exist at the time of the transaction.Secretariat). morals.  The statute of frauds applies only to executory contracts. and 2. Those which are absolutely simulated or fictitious. 3. Jinky Ann Uy (Remedial Law). NOTES: by the party charged or by his agent. Those expressly prohibited or declared void by law. Joy Inductivo (VC-Finance).

4. Sha Elijah Dumama(Sales and Lease). 6.  The binding tie of these obligations is in the conscience of man. b. Ma. Contract whereby a laborer accepts a wage lower than the minimum wage fixed by law. and presupposes a prestation. and 7. Estoppel by record c. Performance after the civil obligation has prescribed. Executory Contracts .Neither of the contracting parties can demand for the fulfillment of any obligation from the contract nor may be compelled to comply with such obligation NATURAL OBLIGATIONS  They are real obligations to which the law denies an action. the law refuses them every remedy and leaves them where they are. Performance after action to enforce civil obligation has failed. Technical Estoppel a. but which the debtor may perform voluntarily. Estoppel in Pais (by conduct) a. 3. Examples of natural obligations enumerated under the Civil Code: 1. Rhodora Ferrer(Wills and Succession). Rules when only one of the parties is at fault: 1. 3 (b). 2. Payment of legacy after will have been declared void. Estoppel by laches CIVIL LAW COMMITTEE CHAIRPERSON: Romuald Padilla ASST.  It is patrimonial. 5. Ian Dominic Pua(Obligations and Contracts). Agreement or contract which is not illegal per se & the prohibition is designed for the protection of the plaintiff 5. Contract whereby a laborer undertakes to work longer than the maximum # of hours fixed by law. Estoppel by acceptance of benefits 2. Payment by heir of debt exceeding value of property inherited. Alejandro Casabar(Property). Guilty party is barred from recovering what he has given to the other party is barred from recovering what he has given to the other party by reason of the contract. Innocent party may demand for the return for the return of what he has given. 7. Payment of any amount in excess of the maximum price of any article or commodity fixed by law or regulation by competent authority. 1. Estoppel by silence b. Payment of usurious interest 2. or before any damage has been caused to a 3rd person. 2.San Beda College of Law 111 MEMORY AID IN CIVIL LAW Principle of In Pari Delicto RAL RULE: When the defect of a void contract consists in the illegality of the cause or object of the contract and both of the parties are at fault or in pari delicto. Ligaya Alipao(Torts and Damages). Payment of money or delivery of property made by an incapacitated person 4. Reimbursement of a third person for a debt that has prescribed. One who lost in gambling because of fraudulent schemes practiced on him is allowed to recover his losses [(Art. 8. Ma. Joyce Vidad EDP: Alnaiza Hassiman. 3. 315. Delivery by minor of money or fungible thing in fulfillment of obligation.CHAIRPERSON: Vida Bocar. Christopher Cabigao(Credit Transactions). they do not have the necessary efficacy to give rise to an action. Restitution by minor after annulment of contract. Payment of money or delivery of property for an illegal purpose. RPC] even if gambling is a prohibited one. where the party who paid or delivered repudiates the contract before the purpose has been accomplished. ESTOPPEL  A condition or state by virtue of which an admission or representation is rendered conclusive upon the person making it and cannot be denied or disproved as against the person relying thereon. Ricasion Tugadi (Conflicts of Law) . Estoppel by judgment d. for under the law. Anthony Purganan(LTD). Estoppel by deed b. 6. Executed Contracts: a. Dorothy Gayon  SUBJECT HEADS: Christopher Rey Marasigan (Persons and Family Relations).  Kinds: 1. John Stephen Quiambao(PAT).

concerned with fact of delay 2. Garny Luisa Alegre (Commercial Law). Charmaine Torres (Taxation Law). question of inequity of permitting the claim to be enforced 3.112 2005 CENTRALIZED BAR OPERATIONS LACHES or “STALE DEMANDS”  Failure or neglect. of the defendant’s conduct and having been afforded the opportunity to institute a suit c. giving rise to the situation of which complaint is made and for which the complaint seeks a remedy b. question matter of time or 3. by exercising due diligence. Elaine Masukat (VC-EDP). not statutory 4. Jonathan Mangundayao (Political Law). Injury to the defendant in the event relief is accorded tot the complainant. the complainant having knowledge or notice. Mark David Martinez (Criminal Law). for an unreasonable and unexplained length of time. Conduct on part of the defendant.Secretariat). statutory 4. Francis Benedict Reotutar (Labor Law). Jinky Ann Uy (Remedial Law). concerned with effect of delay 2. Romuald Padilla (Civil Law). could or should have been done earlier. or of one under whom he claims. not based on a fixed time PRESCRIPTION 1. Yolanda Tolentino(VC-Acads). it is negligence or omission to assert a right within reasonable time. Ronald Jalmanzar (Over-all Vice Chair). Joy Inductivo (VC-Finance). applies in equity 5. to do that which. warranting a presumption that the party entitled to assert it either has abandoned it or declined to assert it. Jackie Lou Bautista (Legal Ethics) . based on a fixed time 2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT CHAIRPERSONS Maricel Abarentos (Over-all Chairperson). Lack of knowledge or notice on the part of the defendant that the complainant would assert the right on which he bases his suit d. or the suit in not held to be barred LACHES 1. applies at law 5. Jennifer Ang(VC.  Elements: a. Anna Margarita Eres (VC-Logistics). Delay in asserting the complainant’s rights.