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1nstructions \ .,
Digests of CasJ ,~ [Revie,v Subjects]
Prof Crisosto1110 A. Uribe
f

c, ,.:.-~

Coverage Cases decided by the Supreme Comi this year and_prior year covered by
Civil Law Review 1, Civil Law Review 2 OR Civil Law Review.

Form Printed. Legal-size bond paper. font size : 11 or 12.


Not n1ore than 2 pages per issue/case.

The Table of Cbntents must follow the course outline/s. A case should
be under a specific topic like Legal Separation or Nova~ion.

Substance Title should be con1plete including the G..R. Number, date of


promulgation and the name of the ponente (state division or en bai1c)
-- -
Nature of the action:

Facts: Summary of facts relevant to the issue

Issues: .General issues ; Controlling issues

Rulings: State first how the issue was resolved. Do not rephrase the
rulings.

Basis of the Grade Nuinber and "quality of digests.


;

The grade will _be treated as 1 or 2 quizzes. It will replace the lowest
grade/grades in quizzes.

Date of Submission 2 weeks before the last day of m eeting/classes. Submit to the beadles_.
ARELLANO UNIVERSITY-SCHOOL OF LAW
CIVIL LAW REVIEW II
ATTY. CRISOSTOMO A. URIBE

Instructions for FINAL Examination:

1. Alphabetically arranged; at least one (1) seat apart with name on the chair including
those absent;
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numbers (class number must be written at the upper right corner of the perm.it) before
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3. No one will be allowed to go out of the exa minati on ven ue unless he has submitted the
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Example: .
Class Number: 1
Name: Cruz, Pedro
Section : Sunday 8:00-12:00

6. ALL GADGETS (Mobile Phones/Tablets/Smart Watches/Apple Watches) should be out of


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NSWER SHEETS must stay on the armchair. Ra ising it while taking
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you submit personally the test pape r with the MCQ answer sheet on top of the
questionnaire. DO NOT FOLD.

SUNDAY; MAY 21, 2017; 9:00-12:00 N.N.


REVIEW ROOM

REMINDER: You should be inside the room at 8:30 A.M .


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Syllabus

Course Title Civil Law Review 2


Course Credit Fow (4) mlits . . .
Obligations & Co"ntracts; Sales, Lease, Agency, Partnership
Pre-requisites
& Trusts, Credit Transactions and Torts & Dan1ages
Pre-requisites t.o None
Type of Course Maj or Subject
Faculty Atty. Crisostomo A. Uribe

Course Description

Civil Law Review 2 is an integration of the principles in Civil Law relating to obligations
& contracts, sa~es, lease, quasi-contracts, age1icy, partnership, trust, credit transactions,
quasi-delicts and dan1ages.
It is basically covered by Book IV, Titles I, II, III, IV, V, VI, VII, VIIl,' IX, X, XI, XII:
XIII, XV, XVI, XVII, XVIII & XIX of the Civil Code of the Philippines.

'
Course Objectives

-1. Understand the basic principles applicable to obligations and its different sources.
2. Identify the rights and obligations of parties to these obligations.
3. Appreciate and apply these fundainental principles to actual business transactions.
4. Encourage diligence and the observance_of honesty ai1d fair dealings at all tin1es.
2
, . .

Course Outline

J. ' Obligations - Art~. 1156-1304

A. In General

1. Definition - Art. 1156


2. Kinds of Obligations as to basis & enforceability-Ali. 1423-1430; RA 6809
3. Prescription of Actions- 1139-1155

Villa.roel v. Estrada, 7 1 Phil 140


A.nsay v. NDC, 107 Phil 997
DBP v. Confessor, 161 SCRA 307 (1988)

4. Elements of 9bligations

B. Sources of Civil Obligations-Ali. 1157

Sagrada Orden v. NACOCO, 91 Phil 503


/ The Metropolitan Bank and Trust Company v. Rosales and Yo Yuk To,
G.R. No.183204, January 13, 2014

1. Law-Ali. 1158
2. Contr!lcts - Arts. 1159, 1305
3. Quasi-contracts-Alis. 1160, 2142-2175

a. Negotiorum Gestio
b. Solutia Indebiti
c. Other Quasi-Contracts

4. Acts or omissions punished by law - .Alis. 1167, 2177, A,rts. 100 &104 RPC
5. Quasi-delicts,.... A.Jis. 1162, 2176

Saludaga v. FEU, G.R: No. 179337 April 30, 2008


People's Car v . Commando Secmity, 51 SCRA 40
Cruz v. Tuazon & Co., 76 SCRA 543
Gutien-ez Henna.nos v. Orense, 28 Phil 571
Adille v. CA, 157 SCRA 455
Andres v. Mantrust, 177 SCRA 618 (1989)
Puyat & Sons v. Manila, 7 SCRA 970
/CBK Power Co. Ltd. v. Commissioner of Internal Revenue.
G.R. Nos. 198729-30, January 15, 2014
Cangco v. MRR, 38 Phil 768
Gutien-ez v. Gutierrez, _56 Phil 177

C. Compliance with Obligations -Arts. 19, 1163-1166, 1244, 1246, 1460, 442, 440

D. Kinds of Civil Obligations

l. As to Perfection & Extinguislm1ent

a. pme - Arts. 1179, 1197


b. conditional - Arts. 1181-1190
c. with a tenn or period - Arts . 1180, 1193-1198
3
' .~'

Hongkong and Shanghai Banking Corp. vs. Spouses Broquez.a.


G.R. No. 178610 November 17, 20 10
Pay v . Palanca, 57 SCRA 618
Smith Bell v. Sotelo Matti, 44 Phil 874
Chavez v. Gonzales, 32 SCRA 547
Encarnacion v. Baldomar, 77 Phil 470
Eleizegui v. Lawn Tennis Club, 2 Phil 309
Ph.ilbanking v. Lui She, 2 1 SCRA 53
Lim v. People, 133 SCRA 333
.Asaneta, Inc. v. Phil. Sugar Estates, 20 SCRA 330
Millare v. Hernando, 151 SCRA 484

2. As to Plmality of Prestation

a. conjunctive
b. alternative -Arts. 1199-1205
c. facultative - Art. 1206

Arco Pulp and Paper Co., Inc. and Santos v. Lim, G.R. No. 206806, June 25, 2014

3. As to rights & obligations of multiple parties -Arts. 1207-1222

a. Joint
b. Solidary-Aiis. 927, 1824, 1911, 1915, 1945, 2157, 2194, 2146
Arts. 94, 121 FC; Art. 90 RPC
c. Disjunctive

Ronquillo v. CA, 132 SCRA 274


Malayan Insurance v. CA, 165 SCRA 536
Pl\TB v. Independent Planters, 122 SCRA 113
Calang and Ph..iltra11co vs. People, G .R. No. 190696 August 3, 2010
Ruks Konsult and Construction vs. Adworld Sign and Advertising Corp.
and Tra11Sworld Media Ads, G.R. No. 204866 January 21, 2015

4. As to perfom1ru1ce of prestation - Alis. 1221-1225, 1209- 1210

a. Divisible
b. Indivisible
c. Joint indivisible
d. Solidary indivisible

5. As to the presence of ru1 accessory tmde1iaking in case of breach

a. with a Penal Clause -Arts. 1226-1230


D istinguish from Liquidated Damages

. Bachrach v. Espiritu, 52 Phil 346


Robes-Francisco v. CFI, 86 SCRA 59
v.
Pamintuan CA, 94 SCRA 556

E. Breach of Obligations - Art. 1170

Honrado v s. GMA Network Films, Inc., G.R. No. 204702, Januruy 14, 2015

Mam1er of Breach
1. fraud-Aii s. 1171, 1338, 1344
2. negligence - Arts. 1171-1173
4

3. delay - Arts. 11 69, 11 65, 1786, 1788, 1896, 1942


4. any other mruu1er of contravention

Excuses for non-performance


1. Fortuitous Event - Arts. 1174, 552, 11 65,2 14.7,2 159
2 . Act of creditor

Cangco v. MRR, 38 Phil 768


Telefast v. Castro, 158 SCRA 445
Meralco v. Ramoy, G.R. No. 158911 March 4, 2008
Mindanao Terminal v , Phoenix Assmance, G.R. No. 162467 May 8, 2009
Jimenez v. City of Manila, 150.SCRA 510
Nakpil & Sons v. CA, 144 SCRA 596; 160 SCRA 334
Gilat Satellite Networks, Ltd. v . .UCPB General Insurance Co., Inc.,
G.R. No.189563 , April 7, 2014
Rivera vs. Spouses Chua, G.R. No. 184458, January 14, 2015
Solar Harvest, Inc. v. Davao Conugated Carton Corp. ,
G.R. No. 176868 July 26, 2010
Agcaoili v. GSIS, 165 SCRA 1
Arrieta v. N aric, 10 SCRA 79
Sicam v. Jorge, G.R. No. 1_59617 August 8, 2007
NPC v. CA, 161 SCRA 334
Fil-Estate, Inc. and Fil-Estate Network, Inc. v. Spouses Ronquillo,
G.R. No. 185798, January 13, 2014

F. Remedies for Brea.ch of Obligations - Arts. 1165-1168, 1170, 1177-1178,


1191-1192, 2236,302, 1708; Alts: 153 , 155FC;Rule39Sec. 13

1. Extra-judicial remedies
a. expressly granted by law - Arts. 1786, 178 8, 1526
b. stipulated

2. Judicial remedies
a. principal remedies - AIts. 1191 , 11 70
b. subsidiary remedies - Alis. 1380, 1177
c. ancillary remedies - Rules of Court

Universal Food Corp. v. CA, 33 SCRA 1


Magdalena Estate v. Myrick, 71 Phil 344
UP v. de los Angeles, 35 SCRA 102
Zulueta v. Mariano, 111 SCRA. 206
Palay, Inc. v. Clave, 124 SCRA 638
Angeles v. Calasanz, 135 SCRA 323
Boysaw v. Interphil Promotions, 148 SCRA 63 5
Pilipinas Bank v. I.AC, 151 SCRA 546
Central Bank v. CA, 139 SCRA 46
Unlad Resources Developmentv. Dragon, G.R. N o. 149338 July 28, 2008
Swire Realty Dev't Corp. ys. Jayne Yu, G.R. No. 207133, March 9, 2015
Olivarez Realty. Corp. and Dr. Pablo Olivarez,
. v. Castillo ,
G.R. N o. 19625 1, July 9, 2014

G. Modes of Extinguishment of Obligations -A.it. 1231

Saura v. DBP, 44 SCRA 445

1. Payrnentorperfom1ance- Arts. 1232-1244, 1246-125 1, 1302;


RA 529, RA 8183; PD 72, Secs. 31 -32 .
National.Power Corp. v. Lucman M. Ibrahim, et al. , G.R. No. 175863
February I 8, 2015
Land Bank of the Philippines v. Alfred o Ong, G .R . No. J 9075 5, Nov. 24,2010
J.M. Tuason v. Javier, 31 SCRA 829
Legarda v. Saldana, 55 SCRA 324
Azcona v. Jamand.re, 151 SCRA 317
Aranas v. Tutaan, 127 SCRA 828
Kalalo v. Luz, 34 SCRA 337
Ponce v. CA, 90 SCRA 533
New Pacific Timber -v. Sefieris, 101 SCRA 686
Roman Catholic Bishop ofMalolos, Inc. v. IAC, 191 SCRA 411, Nov. 16, 1990
Tibaj ia, Jr. v. CA, 223 SCRA 163, January 4, 1993
Bognot v. RR1 Lending Corp., G.R. No. 180144 September 24, 2014
Velasco v. Meralco, 42 SCRA 556
Conunissioner v. Burgos, 96 SCRA 831
Filipino Pipe & F0tmdry Corp. v. NAWASA, 161 SCRA 32
Del Rosario v. Shell, 164 SCRA 556

Special Forms of Payment .


a. Dation in Payment - A.it. 1245
b. Application of Payments - Arts. 1252-1254, 1248
c. Payment by Cession or assignment - A.11. 1255
d. Tender of Payment and Consignation - AIts. 1256 - 1261

Filinvest v. Phil Acetylene, 111 SCRA 421


Citizens Sw-ety v. CA, 162 SCRA 738
PNB v. DEE, Antipolo Properties, Inc., (now Prime East Properties, Inc.)
and AFP-RSBS, Inc., O.R. No. 182128, February 19, 2014
Soco v . Militante, 123 SCR..A.. 160
Immaculata v. Navarro, 160 SCRA 211
Del Crumen v. Spouses Sabordo, G.R. No. 181723, August 11 , 2014

2. Loss-of the thing due or Impossibility of Performance - Arts. 1262-


1269, 1189, 1174, 1165, 1268, 1942, 1979, 2147, 2159

People v. FrankJin, 39 SCRA 363


Laguna v. Mru1abat, 58 SCRA 650
Occefia v. J abson, 73 SCRA ~37

3. Condonation or remission of the debt -A.its. l270-1274, 748,749


I

4. Confusion or Merger of Rights - A.its. 1275-1277, 1215, 1217

5. Co'mpensation -Aits. 1278-1 290, 1243 , 1215

Kinds of Compensation
a. legal
b. conventional
facultative
c. judicial

.Gan Tian v. CA, 28 SCR.A 235


PNB v. Ong Acero, 148 SCRA 166
Francia v. IAC, 162 SCRA 753
R epubli c v . de los Angele s, 98 SCRA 103
Solinap v . de] Rosario, 123 SCRA 640
6

Sycipv.CA, 134SCRA317 .
Cia M aritima v. CA, 135 SCRA 593
lnt' l. Cotporate Bank v. IAC, 163 SCRA 296
Mindanao Portland Cement v. CA, 120 SCRA 930
Bank of the Philippines v. CA, G.R. No. 136202 January 25, 2007
Uruon Bank v. DBP, G.R. No.191555, January 20, 2014

6. Novation-Arts. 1291-1304, 121 5

Kinds of Novation
a. As to its nature
i) subjective or personal
ii) objective or real

b. As to its form .
i) expre~s
ii) implied

Fua v. Yap, 74 Phil 287


Japan Airlines v. Sin1angan, G.R. No. 170141, April 2008
Anamer Salazar v. J.Y. Brothers Marketing C()rp., G.R. No. 171998, Oct. 20, 2010
Metropolitan Bank vs. Rural Bank of Gerena, Inc., G.R. No. 159097, July 5, 2010
Arco Pulp and Paper Co., Inc. and Santos v. Lim, G.R. No. 206806, June 25, 2014
Millar v . CA, 38 SCRA 642
Sandico v . Piguing, 42 SCRA 322
NPC v. Dayrit, 125 SCRA 849
Integrated Construction v. Relova, 146 SCRA 360
Cochingyau v. R & B Surety, 151 SCRA 339
Balila v . IAC, 155 SCRA 262
People's Bnk v. Syvel ' s, 164 SCRA 247
Rodriguez v. Reyes, 37 SCRA 195

7. Other Modes

II. Contracts -Arts. 1305-1422

A. In General

1. Definition - Arts. 1305


Auto-contract-Arts. 1491, 1646, 1890

2. Elements of Contracts
a. essential
b. natural
c. accidental

Batchelder v. CB, 44 SCRA 45

B. FW1darnental Characteristics/Principles of Contracts

1. Consensuality of Contracts - Arts. 1305, 1317

Contract of Adhesion
7

Republic v. PLDT, 26 SCRA 620


Corpus v. CA, 98 SCRA 424
Ejercito, et.al. y . .Oriental Assurance Corp., G.R. No. 192099 July 8, 2015

2. Autonomy of Contracts - Arts. 1306, 1799, 2088, 2130

Daisy Tiu v. Platinw11 Plans, G.R. No. 163512 Febrnary 28, 2007
Cui v. Arellano University, 2 SCRA 205
Saw-av. Sindico, 107 Phil 336
Leal v . IAC, 155 SCRA 394

3. Mutuality.of Contracts - Alis. 1308-1310, 1182

Acceleration Clause
Escalation Clause

Banco Filipi.no Savings V. Navarro, 152 SCRA 346 (1987)


Florendo v. CA, 265 SCRA 678 (1996)

4. Obligatory Force of Contracts - Arts. 1159, 1315- 1316, 749

New World Developers and Management, Inc. y. AMA Computer


Learning Center, G.R. No. 187930, February 23, 2015

5. RelativityofCont:racts-Alts. 1311-1314, 1177-1178, 1381(3)


Privity of Contracts

Saluda, Jr. vs. Security Bank Corp., G.R. No. 184041, October 13, 2010
Metropolitan Bank and Trust Company vs. Reynado and Adrandea,
G.R. No. 164538 August 9, 2010
Prudential Bank vs. Abasolo, G.R. No. 18673 8 September 27, 2010
Asian Cathay Finance and Leasing Corporation vs. Spouses Cesario
Gravado~ and Norma de Vera.,et. al, G.R. No. 186550 July 5, 2010
Velasco v. CA, 95 SCRA 616
Kauffman v. PNB, 42 Phil 182
Bonifacio Bros. v. Mora, 20 SCRA 261
Florentino v. Encarnacion, 79 SCRA 192
Bank of Alnerica v._IAC, 145 SCRA 419
Marimperio v. CA, 156 SCRA 368
Daywalt v. Corp de PP Agustinos, 39 Phil 587
Gilchrist v. Cuddy, W Phil 542 (191 5)
Estate of K.H. Hemady v. Luzonsmety, 100 Phil 389 (1956)
So Ping Bun v. CA, 314 SCRA 751 (1 999)

C. Classification of Contracts

1. according to degree of dependence


a. preparatory-Arts. 1479, 1767, 1868
b. principal-Arts.1458, 1638, 1642, 1933, 1962
c. accessory - Arts. 204 7, 2085

2. according to perfection
a. consensual - Arts.1315, 14 75
b. real - Alis. 13 16, 1934
c. fom1al - Arts. 1356
8

3. according to solemnity or form -Arts. 1356


a. any form
b. special form

4. according to purpose
a. transfer of oVvTiership - Arts. 725, 1458, 1638
b . conveyance of use - Arts. 562, 1642, 1933
c. rendition of service - Alts. 1642, 1868

5. according to nature of obligation produced


a. bilateral -Al-ts.1642, 1458
b. unilateral - A.11s. 2047, 2093

6. according to cause - Alts. ] 350


a. onerous-Alts. 1458, 1638, 1642
b. gratuitous or lucrative - Alis. 725, 1933
c. rennmeratory

7. according to risk
a. commutative
b. aleatory -Alts. 2010

8. according to name
a. nominate
b. limominate-Arts. 1307

9. according to subject matter


a. thing
b. right
c. service

D. Stages of Contracts

1. Negotiation

Contract of Option - Alts. 1324, 14 79, 1482

Sanchez v. Rigos, 45 SCRA 368

2. Perfection

Tong Brothers Co. v . IAC, 156 SCRA 726


Velasco v. CA, 51 SCRA 439

3. Perfonnance
4. Conslm1mation

E. Essential Elements of Contracts - Arts. 1318


1. consent of the contracting paities -
Alts. 1319-1346,"37-42, 739, 1476(4), 1490-1491, 1533(5), 1646, 1782,
1409(7)
Alts. 87, 124, 234 FC; RA 6809; Art. XII, Secs. 7 & 8 1987 Constinrtion

Cognition Theory
Manifestation Theory
.' 9
!, :

2. object ce1iain which is the subject matter oftl1e contract -


Arts. 1347-1349, 1311 , 1178
3. cause of the obligation - Arts. 1350-1355
4. Delivery
5. Due observance of prescribed formaliti es

Clemente v. CA, Jalandoon, GR No. 175483, October 14, 2015


Pentacapital Investment Corp: vs. Mahinay, G.R. No. 171 736 July 5, 2010
Ong Yiu v. CA, 91 SCRA 223
Weldon v. CA, 154 SCRA 618
C & C Conuuercial Corp. v. Menor, 120 SCRA 112
Tang v. CA, 90 SCRA 236
Carino v. CA, 152 SCRA 529
Lagunzad v . Goll2ales, 92 SCRA 476
Law v. Olympic Sawmill, 129 SCRA 439

F. Form of Contracts-Alts. 1356-1358

1. any form - oral


2. special fom1

a. validity.-Arts. 748, 749, 1744, 1773, 1874, 1956, 2134,


Act 1147, Sec. 22
b. enforceability- Alts. 1403, 1878
c. greater efficacy or convenience -Arts. 1358

Lao Sok v. Sabaysabay, 138 SCRA 134


Gallardo v. IAC, 155 SCRA 248
Paredes v. Espino, 22 SCRA 1000

G. Refom1ationofContracts-Aits. 1359-1 369

H. Interpretation of Contracts - ~ts. 13 70-13 79

Lim v. _CA; 99 SCRA 668


Republic v. Castellvi, 58 SCRA 336
Eastern Shipping v. Margarina-Verkaufs-Union, 93 SCRA 256

I. Kinds of Contracts as to Validity


l. Valid and binding
2. Valid but defective
i) Rescissible Contracts -Alts. q80-1389, 1191
ii) Voidable Contracts -Alis. 1390-1402, 1327-1328, 1330
iii) UnenforceableContracts-Alts.1403 -1408, 1317, 1878
3. Void.or Inexistent - Alts. 1409-1422, 1318, 1353, 1378, 1491,
1898

Rescissible Contracts
Cabaliw v. Sadona, 64 SCRA 310
Hongkong & Shanghai Bank v. Pauli, l 61 SCRA 634

Voidable Contracts
Felipe v. Heirs of Aldon, 120 SCRA 628
H ouse Int'l. v. IAC, 15 l SCRA 703
JO

Unenforceable Conhacts
Ortega v. Leonardo, 103 _Phil 870
Carbonel v. Poncio, 103 Phil 655
Babao v. Perez, 102 Phil 756
Cabague v. Auxilio, 92 Phil 294
Yuvienco v . Dacuycuy, 104 SCRA 668
Clari11 v. Rulona, 127 SCRA 512
Bisaya Land Traiisportation v. Sanchez, 153 SCRA 532

Void or Inexistent
Clen1ente v. CA, Jalandoon, GR No. 175483, October 14, 2015
Hernai1dez v. CA, 160 SCRA 821
Rubias v . Batiller, 51 SC.RA 120
Javier v. vda. De Cruz, 80 SCRA 343
Menil v. CA, 84 SCRA 413 .
Director ofLmds v. Alba, 88 SCRA 513
Tongoy v. CA, 123 SCRA 99
Lita Enterprises v. IAC, 129 SCRA 79
Arsenal v . IAC, 143 SCRA 40
Manotok Realty v. IAC, 149 SCRA 372
Portugal v. IAC, 159 SCRA 178
Yanas v. Acaylar, 136 SCRA 52
Barsobia v. Cuenco, 113 SCRA 547
Godinez V. Fong, 120 SCRA 223
Yap V. Grageda, 121 SCRA 244
Pineda v . de la Rai11a, 12-1 SCRA 671
Ligu.ez v. CA, 102 Phil 577 .
Philbanking v. Lui She, 21 SCRA 52
A_vila v. CA, 145 SCRA 541
Teja Maiketing v. IAC, 148 SCRA 347
Briones v. Canunayo, 41 SCRA 404
r, ;

11

Special Contracts

SALES
A. Iri General
Definition - Art. 1458, 1488
Characteristics - Art. 1458, 1475
Kinds of Sale-Alt. 1458, 1463
Distinguished from other transactions -Art. 1245, 1466, 1467, 1468

B, Elements of a Contract of Sale

Essential Elements - A.i-t. 1459-1465, 1469-1474, 1489, 1327,.1390, 1403, 1489, 1490,
1491, 1492, 1348, 1347, 1624-1627
l. consent of the contracting parties
2. determinate subject matter [thing or right]
3. price certain in money or its equivalent
Natural Elements
Accidental Elements

C, Perfection of the Contract

Contract of Option
Fonnalities of Contract of Sale - Ai1. 1483

D. Rights and Obligations of the Vendor

To transfer ownership - Ast. 1459, 1477-1478


Double Sales .
Risk of Loss - 1480
To deliver the object -
Warranties

E. Rights and Obligations of the Vendee

Paynient of Price
Right of Inspection
Acceptance

Maceda Law - Realty Installment Buyer Act [RA 6552)

F. Remedies for Breach of Contract

Remedies of an Unpaid Seller


Remedies of the Buyer - An. 1481

Recto Law - Sale of Movables on Installment - Ai1. 1484, 1486

G. Extinguishment of Sale .

Causes
Redemption [Conventional & Legal)

Quiroga v. Parsons Hardware, 38 Phil 501


Sanchez v. Rigas, 45 SCRA 368
First Optima Realty Corporation, vs. Securitron Security Services Inc.
G.R. No. 199648, January 28, 2bl5
Martinez v. CA, 56 SCRA 647
Mapalo v . Mapalo, 17 SCRA 114
Paredes v. Espino, 22 SCRA 1000
12

Kuenzle & Streiff v. Macke & Chandler, 14 Phil. 610


Sun Bros. V. Velasco, 54 O.G. 5143
Bautista v. Sioson, 39 Phil 615
Lawyer's Cooperative v. Tabora, 13 SCRA762
Carumba v. CA, 31 SCRA 558
Katigbak;v. CA, 4 SCRA 243
Song Fo & Co. v. Hawaiian Phil. Co., 47 Phil ?21
Gerardino v. CA, 50 SCRA 646
Doron1al v. CA, 66 SCRA 575
Heirs of Jose Reyes, Jr. v. An1anda Reyes, G.R. No. 158377 August 13, 2010
Cebu State College of Science & Teclu1ology v. Misterio, et. al., GR No. 179025,
June 17, 2015

'3arter or Exchange

Murphy v. Trinidad, 44 Phil 649


Biagtan v. Oller, 62 Phil 933

f
13

LEASE
J. Nature

A. Kinds of Lease

I. Lease ofthings [Art. 1642]


2. Lease of work or-service [Art. 1642]
a. household service
b. contract oflabor (employment contract)
c. contract for a piece of work
d. contract witb common carriers(con!Tacl of caniage)
3. Lease ofrigbt - License/Franchise

B. Definitions
C. Characteristics
D. Distinguished from other contracts/legal relations

II. Essential E lements

A. consent
B. object /purpose: period
C. cause
Formalities

III. Rights and Obligations of the Lessor & Lessee


A. Necessary repairs
B. lJ11provements
C. Collapse of a building
D. Reduction oftbe Rent
E. Extension of the Lease
F. Right of First Refusal
G. ?ublease & Assignment of the Lease

IV. R ights an d Obliga tions of Third Pe rsons


A. Suppliers
B. Buyers

V. Te r minatio n of the L ease

A . Loss of the tli.ing


B. Death of either party .
C. Expiration of the period
Implied New Lease or Tacita Reconduccion

Spouses Chtmg v . Ulanday construction, Inc., G.R. No. 156038, October 11, 2010
Cebu Bionic Builders Supply, Inc. v . DBP, G.R. No. 154366, November 17, 2010
Mores v .. Yu~Go, G.R. No. 172292 July 23, 2010
Dee v. CA, 176 SCRA 651 (1989)
Henera v. Herrera, 7 Phil 274
Gonzales v. Mateo, 74 Phil 573
Dakudao v. Judge Consolacion, 122 SCRA 877 (1983)
Man.lapat v. Salazar, 98 Phil 356
Equatorial R ealty Dev't, Inc. v. Mayfair Theater, Inc., 264 SCRA 483,
November 21, 1996
Pamintuari v ..CA, 42 SCRA 344
Heirs ofDimaculangan v. IAC, 170 SCRA 393 (1989)
Fermin v. CA , 196 SCRA 723
j4

"AGENCY
l. In General : Nature
A. Definition
' B. Characteristics
C. Distinguished from/compared with other relations
[Features of a contract of agency]

II. Kinds of Agency


A. Actual agency
Kinds of Actual Agency
l. As to manner of creation: express & implied
2. As to compensation
3. As to scope of authority
B. Apparent or Ostensible Agency (Art. 1473)
C. Agency by Estoppel (.AJ1.' 143 1)

III. Essential Elem,ents of a Contract of Agency


(1) Consent of the contracting parties: principal & agent only
(2) Object :. execution of a juridical act
(3) Cause : presumed to be for compensation
Form : 1869, 1874, 1878

IV. Obligations of the Agent


A. To cany out the a:gency
1. TO' act within the scope of his authority. (M. 1881)
2. To act on behalf of his principal. (Alt. 1868)
Liability of two or more agents ... :

B. To render an accounting ofhistransactions and to deliver. .. (Art. 1891)


C. To be responsible for the acts of the substitute. (Att. 1892)
D. Rules applicable to a commission agent :
Rules applicable to a guarantee conunission agent: Del credere agent

V. Rights and Obligations of the Principal


A. To comply with all the obligations which the agent may have contracted
within the scope .. . and ii1 representation of the principal. (Art. 1910)
B. To advance to the agent the sums necessary .... Art. 1912)
C. To reimburse the agent the sums advanced . .. (Art. 1912, 1918)

Liability when there are two or more principals : solidary (A.rt. 1915)
Rights of Third Persons in Incompatible contracts with agent and principal

VI. Modes of Extinguishment of Agency: Art 1919

Rallos v. Felix Go Chan & Sons Realty Corp, 81 SCRA 251


Fressel v. Mariano Uy Chaco Sons & Co., 34 Phil 122
Rallos v. Yangco, 20 Phil 269
Macke v. Camps, 7 Phil 553
Jimenez v. Rabat, 38 Phil 357
Insular Drug v. PNB, 58 Phil 683
Domingo v. Domingo, 42 SCRA 13 1
Austria v. CA, 39 SCRA 527
Barretto v . Santa M aria, 26 Phil 440
Coleongco v. Claparols, 10 SCRA 577
IS

PARTNE RSHJP

I. ln General
A. Defm.ition
B. Characteristics of Prut nership as a Contract
C. Disting uished from other Combinations and Rel_ations

11. Essential Requisites


A. Consent of the contracting parties;
B. Object ce1iain : to engage in lawful activity
C. Cause
Fomial Requirements

Ill . Classes of Partnerships


A. As t o its Object : Universal & Particular Partnership
B. As to Liability of Partners : General & Limited Partnership
C. As to tenn : Fixed Term, Pa1i.icular Unde1iak.ing & Pa1inership at Will

IV. Classes of Pa11ners


A. According to their liability : General & Limited Partners
B. According to their contribution : Capitalist Partner & Industrial Partner
C. According to the time they join the partnership: Incoming
D. According to Special Duties : Managing [Article 1792]

V. The property rights of a partner are: [Articles 1800 to 18 14]


A. His rights in specific paiinership prope1iy;
B. His interest in the partnership; and
C. His right to participate in the management.

VI. Obligations of Paiiners Among TheD1selves


A. To mal<e good his promised contribution
B. Fiduciary Duty
C. To participate in the losses
Nature of Liabilityof individual paiiners:
Pro-rata, Subsidiary, Joint or Solidaiy

VII. Obligations of Pa1tners w ith Regard to Third Persons

VIII . Dissolution, Winding Up and Term.1ation


A Nature & Effect of Dissolution
B. Causes of Dissolution
C. Distribution of Assets

IX. Limited Partnership

Yulo v ..Yang Chiao Seng, I 06 Ph.ii 111


Tuazon v. Bolanos, 95 Phil 106
A.bong v. Wee, 54 SCRA 54 .(1973)
A..rbes v . Polistico, 53 Phil 489
Gatchalian v. Collector, 67 Phil 606
Campos Rueda & Co. v. Pacific Commercial Co., 44 PluJ916
CIR v. Suter, 27 SCRA 152
D auden-H ernaez v. de las Angeles, 27 SeRA 1276
Sancho v. Lizanaga, 55 Phil 601
Pang Lim v. L9 Seng, 42 Phil 282
Catalan v. Gatchalian, 105 Plul 1270 (1959)
Island Sales, Inc. v. United Pioneers, 65 SCRA 554
16

T ru ts

1. ln General
2. Kinds of Trusts
a. Express
b: lmplied

Valdez v. Olarga, 5 ] SCRA 71


Uy Aloe v. Cho Jan Jing, 19 Phil 202
Escober v. Locsin, 74 Phil 86

Credit T ransactions : Loan, Deposit, Guaran ty & Suretyship

1. Nature of Credit Transactions

A. Definition
B. Scope
C. Distinguished from Bailments

Il . Loans
A. Definition : Pw-pose
B. Kinds of Loan :
I. Commodatum : Preccirium
11. Mutuum or Simple Loan
C. Characteristics
D. Essential Elements: Consent, Object, Cause
F orma lit ies

E. Rights & Obligations of Bailor & Bailee in Commodatum


Liability for loss/deterioration due to a fo1tuitous event (Art. 1942/ 1943)

F. Rights & Obligations of Bailor & B ailee in Mutuum


To pay interest : Kinds : Rate

G. Modes of E>..'tinguishment

Macalinao v. BPl G.R. No. 175490 September 17, 2009


Catholic Vicar Apostolicv. CA , 165 SCRA 51 5 (1988)
Republic v. Bagtas, 6 SCRA 262 (1 962)
Saura lm pmt & Export v. DBP (1 972)
He1Tera v . Petrophil Corp., 146 SCRA 385
Integrated Realty Corp v. PNB, 174 SCRA 295 (1989)
Republic v. CA, 146 SCRA 15 (1986)
Quintos v . B eck, 69 Phi l 108 (1939)
Republic v: Grij aldo, 15 SCRA 638 (L-20240, Dec. 31 , 1965)
De Jos Santos v. Jana, 15 Phil 147 (1910)
M ina V. Pascual, 25 Ph.ii 540 (19 13)
Briones v. Can1mayo, 41 SCRA 404 (1 971)
Lopez v. de! Rosario, 44 Phil 98 (1922)
Zobel v. City of Manila, 47 Phil 169 (1 925)
Refonnina v. Toma!, 139 SCRA 260 (1985)
Liam Law v. Olympic Sawmill Co., 129 SCRA 439 (1984)
Banco Filipino v. Navano, 152 SCRA 346 (1987)
PNB v. lAC and Maglasang, 183 SCRA 133 (1 990)
PNB v. CA and Padilla, 196b SCRA 536 (1991)
PNB v. CA and Fernandez, 238 SCRA 80 (1994)
Florencio v . CA, 265 SCRA 678 (1996)
17

lll. Deposit

I. Nature : Definition : Purpose


t
2. Kinds of D eposit .
1. Extra-judicial: Conventional & Necessary : 1rregular Deposit
2." Judicial
3. Characteristics
4. Essential Elements : Subject Matter
5. Rights & Obl_igations of D epositor and Depositary
6. Modes of Extinguishment

BPI v. IAC, 164 SCRA 630 (1988)


BPI v. CA, 232 SCRA 302 (1994) .
Serrano v. CB, 96 SCRA 96 (1980)
Lua Kian v. Manila Railroad, 19 SCRA 5 (1967)
Javellana v. Lim, 11 Phil 141 (1908)
Baron V. D avid, 51 Prul 2 (1927)
Vintola v. lBAA, 150 SCRA 578, G.R. # 73271 May 29, 1987
Sia v. People, 121 SCRA 661 (1983)
Gonzales v. Go Tieng and Luzon Smety, 104 Phil 492 (1958)
Consolidated Tenninals v. Artex D evelopment Co., 63 SCRA 46 (1975)
Roman Catholic Bishop v. de la P eiia, 26 Phil 144 (1913)

III. Al_eatory Contracts - Insuiance_, Gambling, Life Annuity

Rivera v. People's Bank & Trust Co., 73 Phil 546


Leung Ben v. O ' Brien, 38 Phil 182

IV. Guaranty and Suretyship : Distinctions

A. Natme :.Definition: Pmpose


B. Characteristics
C. Effects of Guaranty .
1. Between the Guarantor and the Creditor: Benefit of Excussion
2. Between the Guarru1tor and the Debtor : Subrogation
3. Between Co-Gm1rru1tors : Benefit of Division

D. Modes of Extinguishment

Imperial Insmance, Inc. v. De los Angeles, 111 SCRA 24 (1982)


Machetti v. Hospicio de San Jose, 43 Phil 297 (1922)
Castellvi v. Sellner, 4 l Phil 142 (1920)
Severino v. Severino, 56 Phil 187 (1931 )
Wise & Co. v. Tru1glao, 63 Phil 372 (1936)
Manila Surety & Fidelity v. Almeda, 34 SCRA 136
RCBC v. Arra, 115 SCRA 777 (1982)
Republic v. Pa l-Fox Lumber Co., _4 3 SCRA 365 (1972)
Southern Motors, fo e. v. Brubosa, 99 Phil 263 (1956)
Cen~al Smety ru1d Insurance v . Ubay, 135 SCRA 58 (1985)
Marul~ Surety & Fidelity v . Almeda, 34 SCRA 136 (1970)
Associated Insurru1ce & Surety Co., Inc. v. Bacolod, 105 Phil 246 (1959)
18

Credit Transactions -: Pledge, Mortgage & Antichresis


'
l. Provisiops common to Pledge and Mortgage !Arts. 2085-2092)

A. Nature : Definition : Purpose


B. ~ssential elements
C. Indivisibility of the Contract
D. Pactum Commissoriurn
E. Right to recover deficiency : Who is entitled to excess?
F. Equity & Ri ght of Redemption

II. Pledge [Arts. 2093-2 123 NCC]

1. In general
a. Kinds of Pledge
b. Characteristics of Pledge
c. Extent/Coverage of the Pledge
B. Rights and Obligations of the Pledgor [Debtor or Third Person]
C. Rights and Obligations of the Pledgee [Creditor]
D. Modes of Exti.nguislm1ent

Ill. Chattel & Real Estate Mortgage


(A.Its. 2 140-2 141 , 1484-1485 NCC, Act No. 1508, Chattel M01t gage Law ( 1906),
A.It. 3 l 9, RPC] .
[A.Its. 2124-2131 NCC, Rule 68, Act. No. 3135]

A In general
1. Characteristics
2. Subject Matter
3. Ex.tent/Coverage of the M01tgage
B. Essential Requisites
Fmmal Requisite; Affidavit of Good Faith
C. Rights and Obligations of the Mortgagor [Debtor or Third Person]
D. Rights and Obligations of the M01igagee [Creditor]
E. Modes of Extinguishment

IV. Antichresis [Arts. 2132-2139 NCC]

A N ature and Characteristics


B. Rights and Obligations of the Debtor and Creditor

V. Concurrence and Preference of .Credit [Arts. 2236-2251 NCC;


Act No. 1956, as amended, Insolvency Law]
A. General Provisions
B. Classification ofCredits
C. Order of Preference of Credits

Rural Bank of Caloocan, lnc. v. CA, 104 SCRA 151(198 1)


Vda. De Bautista v. Marcos, 3 SCRA 434 (196 1)
19

Dayrit v. CA, 36 SCRA 549 (1970)


Yuliongsiu v. PNB, 22 SCRA 585 (1968)
Manila Surety & Fidelity v. Velayo, 21 SCRA 515 (1967)
~ Piansay v. David, 12 SCRA 227 (1964)
Makati Leasing and Finance Corp v. Wearever Textile, 122 SCRA 296 (1983)
Northe1n Motors, Inc. v. Coquia, 68 SCRA 374 (] 975)
Lanuza v . de Leon, 20 SCRA 369 (1967)
Bundalian v. CA, 129 SCRA 645 (1984)
Rosales v. Yboa, 120 SCRA 869 (1983)
Tioseco v. CA, 143 SCRA 705 (1986)
Dulay v . Casiaga, 123 SCRA 794 (1-983).
PNB v. CA, 140 SCRA 360 (1985)
DBP y. M irang,-66 SCRA 141 (1975)
Co v. PNB, 114 SCRA 842 (1982) .
Alph a l.i1Stu-ai1ce and Surety v. Reyes, 106 SCRA 274 (1981)
Marcelo Steel Corp v . CA, 54 SCRA 89 (1973)
PNB v. Adil, 118 SCRA 110 (1982)
Ocampo v. Dori1alanta, 20 SCRA 1136 (1967)
Sainonte v. CA, 14 1 SCRA 189 (1986)
Rai11irez v. CA, 144 SCRA 292 (1986)
20

: .

Torts & Damages


I. Introduction
A. Nature of Quasi-delict
B . Quasi-delict disti.ngujshed from Tort, Crime, Contract
C. Scope/Sources of Law

II. Elements of Quasi-Delict


A. Act or Omission, there being Fault or Negligence

1. Concept of Negligence
2. Standard of Care: Degree of Diligence
3. Proof of Negligence : Bmden of Proof

P resumptions of Negligenc~
Doctrine of Res Ipsa Loquitur

B. Damage or lnjury
C. Causal Connection between the Act or Omission and the Damage

III. Persons liable


A. The Tortfeasor
B. Vicarious Liability: Persons liable for Toiiious Acts of another
C. Nature of Liability
D. D efenses
1. Absence of an element
2. Fortuitous Event
3. Contributory Negligence
4. . Prescription
5. D octrine of Last Clear Chance
6. Double Recovery
7. Lack of Jmisdictiou

Air France v. Carrascoso, 18 SCRA 155 [1 966]


Calalas v.-CA, 332 SCRA 356 (2000]
Heirs of Guari.n g, Jr. v. CA, 269 SCRA-283 [1 997]
BLTB Co. Inc. v. CA, 64 SCRA 427 (1975]
Phil Bank of Commerce v. CA, 269 SCRA 695 [1997]
Soliman v . Tuason, 209 SCRA 47 [1 992]
Dulay v . CA, 243 SCRA 220 [1995]
Garcia v. Florido, 52 SCRA 420 [1973]
Valenzuela v. CA, 253 SCRA 303 (1996]
Canlas v. Asian Savings Bank, 326 SCRA 415 (2000]
Hedy Gan v. CA, 165 SCRA 378 [1 988]
Ong v . Metropolitan Water District, 104 Phil 398 [1958]
D.M. Consunji v. Juego, 357 SCRA 249 [2001]
Ramos v. cA & de los Santos Medical Center, 321 SCRA 584 [1999]
Reyes v . Sisters of Mercy Hospital, 341 SCRA 760 [2000]
Heirs of Ildefonso Cosculluela v . RGIC, 179 SCRA 5 11 [ 1989)
Board of Liquidators v. Heirs of Kalaw, 20 SCRA 987 [1967]
Gabeto v. Araneta, 42 Phil 252 [1921]
Fernando v. CA, 208 SCRA 714 [1992]
Javellana v. Tayo, 6 SCRA 1042 [1 962]
PNB v. CA, 83 SCRA 237 (1978]
City of Manila v. Teotico, 22 SCRA 267 [J 968]
Cuadra v. Monfort,3 5 SCRA 160 [1970]
Libi v. lAC, 214 SCRA 16 [1992]
21
,.

Tamargo v. CA, 209 SCRA 518 [1992]


BA Finance Corp v. CA, 2 15 SCRA 715 [ 1992)
Phil. Rabbit Lines v. Phil. American Forwarders, 63 SCRA 231 [1 975)
0
Ramos v. Pepsi Cola Bottling Co. of the Phils, 19 SCRA 289 [1967]
Menit v. Government of P.l., 34 Phil 311 [1916]
P alafox v, Province ofllocos No1ie, 102 Phil 1186 [1958]
St. Francis High School v. CA, 194 SCRA 341 (1991]
Palisoc v. Brillantes, 41 SCRA 548 [1971]
Worcester v. Ocampo, 22 Phil 42 [1912]
Metro Manila Transit Corp. v. CA, 223 SCRA 52 1 [1993]
Singapore Airlines v. Pajo, 122 SCRA 671 [1983]
Bachelor Express v . CA, 188 SCRA 216 [1990]
Gotesco Investment Co1p v . Chatto, 210 SCRA 18 [ 1992]
Board of Liquidators v . Heirs of Ka.law, 20 SCRA. 987 (1967]
PNR v. CA &Tupang, 139 SCRA 87 (1985)
Escueta v. Fandialan, 61 SCRA 278 (1974]
Picart v . Smith, 37 Phil 809 [1918]'
LBC Air Cargo v. CA, 241 SCRA 619 [1995]
Tayag v . Alcantara, 98 SCRA 723 (1980]
Fernandez v. Manila Electric & Railroad Co., 14 Phil 274 [1909)
UE v. Jader, 325 SCRA 804 [2000]
Grand Union Supermarket v. Espino & CA, 94 SCRA 953 [1979]
Hennosisima v . CA., 109 Phil 629 [1960]
Tanj anco v. CA, 18 SCRA 994 [1966]
Velasco v . Mera.lea, 40 SCRA 342 [1971]
City ofMarula v . Garcia, 19 SCRA 413 [1967]
Dr. Jaime Cruz v. Agas, GR No. 204095, JmJe 15, 2015

IV: Liability for Torts Damages

A. In General

B. Kinds of Damages

1. Actual or Compensatory
2. Moral
3. Nominal
4. Temperate or Moderate
5. Liquidated
6. Exemplary or corrective

Villarey Transit v. CA, 31 SCRA 511 [1970]


People v. Quilaton, 205 SCRA 279 [1992)
People v. Bala.nag, 236 SCRA 474 [1994]
Cojuangco v. CA, 309 SCRA 602 [1999]
LBC Express v. CA, 236 SCRA 602 [1994]
Ponce v. Legaspi, 208 SCRA 377 [1992]
Bayani v. Pa.nay Electric Co, 330 SCRA 759 (2000)
M ayo v . People, 204 SCRA 642 [1991]
Solis & Yarisantos v. Salvador, i4 SCRA 887 [1 965]
Radiowealth Fimmce v. Del Rosario, 335 SCRA 288 [2000]
Wassmer v. Velez, 12 SCRA 64 8 [1964]
Sa.skies Tours v.lAC, 124 SCRA 588 [1 983)
22

Pn~scribed Textbooks:

"
A.rtmo M. Tolentino, Commentaries & Jurisprudence un the CivU Code ofthe
Philippines, Vol. 4 , Central LawBook Pub., 1987

Araceli Baviera, SALES, UP Law Center, 19 81

Esteban B. Bautista, Treatise on Philippine Partnership Law, Rex Book Store, 1978

Hector S. De Leon, Comments and Cases on Partnership, Agency, and Trusts, Eighth
Edition , R ex Printing Company, Inc., 201 0

}-kctor S. De Leon, Comments and Cases on Credit Trnnsactions, Eighth Edition, Rex
Printing Con).pany, Inc., 2010

References :

l. Melencio S. St a. Maria, Obligations and Contracts, Texts aild Cases, Rex Book
Store., 2 003
2. Hector S. D e Leon, Comments and Cas.es on Sales and Lease, Si>-.1 h Edition, Rex
Printing Company, Inc., 2005
3. D. P. Jurado, Comments & Jurisprudence on Obliga!Tons and Contrncts, Rex
Bookstore, Twelfth Revised Edition 2009

Teaching Meth ods/Strategies

A question-and-answer format will basically be employed to determine whether the


student read an d lmderstood the provisions of the law and the decisions of the Supren'Je
Court. Quizzes will also be administered to check lmowledge, m1derstanding and the
anal);zing skills of the sh1dents. Lechues, group discussions and visual aids may be used
when applicable..

Grading Criteria:
AUSL DLSU & LPU SSC
MidTerm Exam . 30% 20% 30%
Recitation & Quizzes 30% 30% 40%
Final Exam 40% 50% 30%