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Course Syllabus Law 101 Obligations and Contracts
Course Syllabus Law 101 Obligations and Contracts
The basic text is Tolentino, Arturo. Commentaries and Jurisprudence on the Civil Code of the Philippines.
Any edition will do.
Unless otherwise indicated, numbers below refer to articles of the New Civil Code. Students are required
to read the all commentaries corresponding to the provisions indicated. Students are strongly advised to
read all cases in the original.
The schedule of assignments over the course the semester is laid out in the table at the end of these
instructions. Such assignments are to be followed strictly unless otherwise instructed by the professor.
More than ample allowance has been made for possible holidays, calamities, absences, or other
contingencies.
Where the syllabus points to an unfamiliar technical word, phrase, classification, or language, students
are expected to exercise due diligence and determine their meaning.
Electronic devices of any kind or any printed material are NOT permitted to be used during class hours.
Electronic devices shall be turned OFF, and printed materials (codals and cases) shall be kept HIDDEN.
They may be taken out only upon instruction. Only handwritten notes are permitted. During recitation,
students may glance at notes, but shall NOT read them. Every violation of this rule merits one failing mark
for recitation.
Students shall have ready at all times, at least 2 sheets of yellow intermediate pad paper for quizzes.
Each quiz is equivalent to one recitation.
Although attendance is not checked, if a student called for recitation turns out to be absent, s/he
shall be given one failing mark for recitation.
The final grade shall have only two components: recitations/quizzes and the final exam.
PART 1: OBLIGATIONS
In General
o Nature
Definition 1156
Sources 1157-61, 2142, 2176-7, 2180, RPC 218-9, RoC Rule 111
CASES
o Barredo v. Garcia, 73 Phil 607 (1942)
o Mendoza v. Arrieta, 91 SCRA 113 (1979)
o PSBA v. CA, 205 SCRA 729 (1992)
o Amadora v. CA, 160 SCRA 315 (1988)
Transmissibility - 1178
o Possible Classifications
By enforceability
Civil, natural 1423-9
o CASES
Villaroel v. Estrada, 71 Phil 140 (1940)
Fisher v. Robb, 69 Phil 101 (1939)
o Breach
Concept/Distinction
Standard of care/diligence 1163, 1173
o CASES
De Guia v. Manila Electric Co, 40 Phil 706 (1920)
US v. Barias, 23 Phil 434 (1912)
Sarmiento v. Sps. Cabrido, 401 SCRA 122 (2003)
Crisostomo v. CA, 409 SCRA 528 (2003)
Types of Breach
o Substantial
o Casual
CASES
Song Fo v. Hawaiian Philippines, 47 Phil 821
(1925)
Velarde v. CA, 361 SCRA 56 (2001)
Modes
Fraud (dolo): 1171
o CASES
Woodhouse v. Halili, 93 Phil 526 (1953)
Geraldez v. CA, 230 SCRA 329 (1994)
Negligence (culpa): 1171-73, 2201.2
o CASES
Gutierrez v. Gutierrez, 56 Phil 177 (1932)
Vasquez v. Borja, 74 Phil 560 (1944)
Delay (mora)
o In unilateral obligations
Mora solvendi: 1169
CASES
o Cetus Development Corp. v. CA, 176
SCRA 72 (1989)
o Santos Ventura Hocorna Foundation v.
Santos, GR 153004, 04 Nov 2004
o Vasquez v. Ayala Corp., GR 149734, 19
Nov 2004
o Abella v. Francisco, 55 Phil 447 (1931)
Mora accipiendi
CASES
o Vda. de Villaruel v. Manila Motor Co.,
104 Phil 926 (1958)
o Tengco v. CA, GR 49852, 19 Oct 1989
Compensatio morae
CASES
o Central Bank v. CA, 139 SCRA 46
(1985)
o In reciprocal obligations: 1159, 1192
Contravention of tenor of obligation
o CASES
Chavez v. Gonzales, 32 SCRA 547 (1970)
Telefast v. Castro, 158 SCRA 445 (1988)
Arrieta v. NARIC, 10 SCRA 79 (1964)
Magat v. Medialdea, GR L-37120, 20 Apr 1983
Compensation (1231.5)
Concept. 1278, 1286, 1289-90
Requisites, 1279, 1287-88, 1282-84
o CASES
Gan Tion v. CA, 28 SCRA 235 (1969)
Silahis Marketing v. lAC, 180 SCRA 29 (1989)
BPI v. Reyes, 255 SCRA 571 (1996)
PNB v. Sapphire Shipping, 259 SCRA 174 (1996)
Mirasol v. CA, 351 SCRA 44 (2001)
Kinds, 1281
3rd persons' interests
o Guarantor (of the debt), 1280
o Assignee (of the credit), 1285
Novation (1231.6)
Concept, 1291-92
o Changing their object or principal conditions (objective novation),
1292
CASES
Miller v. CA, 38 SCRA 642 (1971)
Dormitorio v. Fernandez, 72 SCRA 388 (1976)
Magdalena Estate v. Rodriguez, 18 SCRA 967
(1966)
Reyes v. Secretary of Justice, 264 SCRA 3 5 (
1996)
Conchingyan v. RB Surety and Insurance, 151
SCRA 339 (1987)
Broadway Centrum Condominium Corp v.
Tropical Hut, GR 79642, 05 Jul 1993
California Bus Lines v. State Investment, GR 14
79 50, 11 Dec 2003
o Substituting the person of the debtor (subjective novation), 1293-
95
CASES
Garcia v. Llamas, 417 SCRA 292 (2003)
Quinto v. People, GR 126715, 14 Apr 1999
o Subrogating a 3rd person in rights of the creditor (subrogation),
1303
Legal, 1300, 1303
CASE: Astro Electronics Corp v. Philippine
Export and Foreign Loan Guarantee Corp., GR
136729,23 Sep 2003
Conventional, 1300-01
CASE: Licaros v. Gatmaitan, GR 142838, 09
Aug 2001
Effects, 1296-99, 1304
Others (1231, p. 2)
Annulment
Rescission
Fulfillment of a resolutory condition
Prescription
o Definition, 1305
CASE
GSIS v. CA, 228 SCRA 183 (1993)
o Kinds
By name
Nominate
lnnominate, 1307
o CASE
Dizon v. Gaborro, 83 SCRA 688 (1978)
By perfection
Consensual, 1315
Real, 1316
By subject matter: things, services
By relationship to other contracts: preparatory, principal, accessory
By nature of the vinculum produced: unilateral, bilateral, reciprocal
By cause: onerous, gratuitous
o In General
Stipulations
Freedom of contract, 1306,1490-91,1782,1799,2088, 2130, Family Code 87
o CASES
Gabriel v. Monte de Piedad, 71 Phil 497 (1941)
Pakistan International Airlines v. Ople, 190 SCRA 90 (1990)
Cui v. Arellano, 2 SCRA 205 (1961)
Arroyo v. Berwin, 36 Phil 386 (1917)
Filipinas Compania de Seguros v. Mandanas, 17 SCRA 391
(1966)
Bustamante v. Rosel, 319 SCRA 413 (1999)
Interpretation
o Plain meaning, 1370
o Evident intention, 1370-71
o Stipulations with different possible meanings, 1375
o Interpretation of terms, 1372-73, 1376-77
o Settlement of doubts, 1374, 1378
o Application of the Rules of Court, 13 79
o CASES
Borromeo v. CA, 47 SCRA 65 (1972)
Kasilag v. Rodriguez, 69 Phil 217 (1939)
Simulation of contracts, 1345-46
o CASES
Rodriguez v. Rodriguez, 28 SCRA 229 (1914)
Suntay v. CA, 251 SCRA 430 (1995)
Blanco v. Quasha, 318 SCRA373 (1999)
Reformation
Requisites, 1359, 1365, 1368
o CASES
Garcia v. Bisaya, 97 Phil 609 (1955)
Beutir v. Leande, 330 SCRA 591 (2000)
When not allowed, 1365, 1367
Concurrence of grounds, 13 61 -62
3rd party fault, 1364
Applicable law, 1350, 1369
o CASES
Atilano v. Atilano, 28 SCRA 2232 (1969)
Carrantes v. CA, 76 SCRA 524 (1977)
Sarming et al v. Dy et al, 383 SCRA 131 (2002)
Defective Contracts
o Rescissible Contracts
Nature, 1383-85
When rescissible, 13 80-82, 13 86-87
CASES
o Oria v. Mcmicking, 21 Phil 24 3 (1912)
o Siguan v. Lim et al, 318 SCRA 725 (1999)
o Suntay v. CA, 251 SCRA 430 (1995)
o Universal Food Corp. v. CA, 33 SCRA 1 (1970)
When available, 1385, 1388
Prescription, 1389
o Voidable Contracts
Nature, 1390
Parties, 1397, 1402
CASES
o Singsong v. Isabela Sawmill, 88 SCRA 623 (1979)
o Caldwallader & Co. v. Smith, Bell & Co., 7 Phil 461 (1907)
o Velarde v. CA, 361 SCRA 56 (2001)
Ratification, 1392-96
CASE
o Uy Soo Lim v. Tan Unchuan, 38 Phil 552 (1918)
Effect of loss of thing due, 1400-01
Effect of annulment, 1398-99
Prescription, 1391
o Unenforceable Contracts
Nature, 1317
When unenforceable, 1403, 1405
CASES
o Carbonnel v. Poncio, 103 Phil 655 (1958)
o PNB v. Philippine Vegetable Oil Co., 49 Phil 857 (1927)
o Limketkai Sons Milling Inc. v. CA, 261 SCRA 464 (1995)
o Swedish Match v. CA, 441 SCRA 1 (2004)
Who may bring action, 1408
Ratification, 1317, 1407
Form, 1406
o Void/Inexistent Contracts
Nature, 1409-10, 1420
When void/inexistent, 1345-46, 1490-91 , 1378, 1409, 1422, 1782, FC 87
Remedies, 1413-16
CASES
o Liguez v. CA, 102 Phil 577 (1957)
o Rellosa v. Gaw Cheen Hum, 93 Phil 827 (1953)
o PNB v. Lui She, 21 SCRA 52 (1967)
o Frenzel v. Catitu, 406 SCRA 55 (2003)
Who may bring action/defense, 1411-12, 1421 ,
CASES
o Ubarra v. Mapalad, AM MT J 91-622 ( 1993)
o Modina v. CA, 317 SCRA 606 (1999)
Contracts imbued with public interest, 1417-19