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CHAPTER 1 – GENERAL PROVISIONS Topic: When strangers or third persons affected by a

contract; Stipulations Pour Autrui

Topic: Limitations on contractual stipulations.
8. D owes C 10k payable after 1 year at 12% interest. It was
1. A contract whereby X promised to live as the common-law agreed that the interest of 1,200 pesos would be given to
wife of Y without the benefit of marriage in consideration T to whom C is indebted for the same amount.
of 100k is immoral, and therefore, void.
In this case, T must communicate his acceptance to D
2. An agreement whereby X is to render service as a servant before the revocation of the stipulation by the parties in
to Y without compensation as long as X has not paid his order that the same will be effective. From the moment
debt is reprehensible and censurable. It is also contrary to communication of acceptance is duly made, T becomes a
law. part to the contract. The promise (C) in a contract
containing a stipulation pour autrui is entitled to bring an
3. X entered into a contract whereby X binds himself to slap action for its enforcement or to prevent its breach in the
his father. This contract is void because it is against the same manner as the beneficiary (T) thereof.
good custom of showing respect to our parents.
9. X contracts with Y for the erection of a building which will
4. X stole the car of Y. Later, they entered into a contract enhance the value of Z/s adjoining property. The fact that
whereby Y would not prosecute X in consideration of 50k. Z may incidentally derive some benefit from the contract
gives him no right to sue X for breach of the contract.
It is the interest of society that crimes be punished. This
agreement between X and Y is contrary to public policy Topic: Third persons bound by contracts creating real rights
because it seeks to prevent or stifle the prosecution of X (exception to the general rule that a contract binds only the
for theft. To permit X to escape the penalties prescribed by parties).
law by the purchase of immunity from Y, a private
10. D mortgaged his parcel of land in favor of C as a security
individual, would result in a manifest perversion of justice.
for his debt. The mortgage is duly registered in the
Topic: Contract binds both contracting parties. Registry of Property. Later on, D sold the same land to T.

5. S agreed to sell his car to B for 100k. The contract is In this case, T bought the land subject to the mortgage
binding upon both contracting parties and either of them constituted thereon. IOW, T is bound by the contract
can enforce the contract against the other. between D and C although he is a stranger to said contract
because the right of C to the mortgage, being a real right,
A stipulation in the contract that the contract shall be follows the property wherever it goes.
considered invalid if so declared by S or that S can comply
with his obligation if he want without the same privilege Topic: Right of creditor to impugn contracts intended to
be given to B is VOID because the contract does not bind defraud them.
both of them. Nor can S alone determine the price of the
11. D is indebted to C in the amount of 10k. D sells a parcel of
which price is binding upon B whether he accepts it or not.
land to T in order that C may not attach the land in
payment of his debt, and D has no other property.
A contract is a meeting of the minds, and thus, there must
be mutual consent.
C, who is a stranger to the contract between D and T, is
given by law the right to ask for the rescission or
But if the price fixed by S is accepted by B, the sale is
cancellation of the sale in order that he may be paid by his
perfected. If S of B alleges fraud, he must adduce
satisfactory evidence.
Topic: Liability of third person responsible for breach of
6. S sold his parcel of land to B. It was agreed that C, a real contract.
estate appraise would be the one to determine the
12. S agreed to sell his parcel of land to B for 1M. S sells the
reasonable price of the land. C, then, fixed the price after
land to C instead because of the inducement of D.
considering all the circumstance and factors affecting the
value of the land.
In this case, B can sue D for damages. However, the liability
In this case, C must make known his decision to S, and B of D for damages cannot be more than that of S for the
who will be bound by the same. latter’s violation of his contract. To hold D liable for
damages in excess of those can be recovered against S
Topic: Generally, contracts take effect only between parties,
“would lead to a result once grotesque and unjust”.
their assigns, and heirs. (Except, contracts are only effective Almost, D would be solidarily liable with S.
between parties when rights and obligations are not
transmissible by law, stipulation, or by nature.) D’s source of obligation would be based on the theory of
7. D is indebted to C in the amount of 10k. D and C are the quasi-delict.
parties to the contract. Topic: Consummation and termination of contracts
If C dies, D must pay the heirs of C. If C assigns his credit 13. S offers to sell his car to B for 500k. B asks S to show him
to X, then D is liable to pay X. the car. Later, S brings the car and shows it to B. B offers
If D dies, and H is the heir, then H assumes the obligation to pay 400k for the car.
of D to C. H is bound by the contract entered into by D, his
predecessor in interest, in view of the privity of interest Here, the parties are taking all the steps that may lead to
between him and D. However, H is not liable beyond the the perfection of the contract.
value of the property he inherits from D, the decedent.
If S agrees to sell the car for 400k, the contract is perfected person. Can S or B refuse to be bound by T’s determination
because there is a meeting of the minds upon the subject of the price if he does not agree with the amount thereof?
matter and the cause of the contract.
20. D owes C 20k. Both are house painters. It was agreed that
The contract will be consummated after S delivers the car D instead of paying C, will paint the house of E to which E
to B and B pays 400k. B becomes the owner of the car and expressed his conformity to C whose service as painter was
S, the owner of the money paid by B. The contract is previously contracted by E. Has B the right to enforce the
completely executed. It ceases to be an active or existing stipulation between C and D?
agreement and it is valuable only in case later dispute or
existing agreement and it is valuable only in case dispute 21. X made an office desk for Y. S told Y that the latter may
should arise between S and B about the agreement. pay whatever amount he would like to pay for it. When the
desk was finished Y offered to pay 2k but instead X
S and B may terminate their contract by mutual agreement demanded 3k for its fair value. Is X entitled to 3k?
thereby releasing them from their respective obligation as
seller and buyer.

Topic: Perfection of consensual and real contracts. CHAPTER 2: ESSENTIAL REQUISITES OF CONTRACTS
14. Today S and B enter into a contract whereby S binds SECTION 1 – CONSENT
himself to sell his car to B for 200k.
Topic: Offer must be certain and seriously intended.
The contract is deemed perfected although there no
22. S intending to play a joke, offered his expensive watch
delivery yet of the car, and payment of the price. Both
worth 50k to B who knew the value of the watch for 500
parties acquire the right to demand from the other the
pesos. Here, there is no valid offer. But if S offered his
fulfillment of his obligation: to deliver the car on the part
watch for 30k to B who did not realize that S was joking
of S, and to pay the amount of 200k.
and accepted the seemingly serious offer, there is a true
meeting of the minds resulting in the existence of a
15. D borrowed from C 5k. As security for the debt, D promised
binding contract of sale.
to pledge his diamond ring to C.
Topic: Acceptance must be clear and absolute.
Before the delivery of the ring to C, the contract of pledge
is not yet perfected. 23. S asked B this question: “will you buy my (specific) car for
200k”. If B answers “yes I accept your offer” or “yes I agree”
If D alter on refuses to pledge the ring, C can demand the or just “yes” the acceptance of is absolute or unconditional.
payment of the obligation although it is with a period. But
C cannot require D to deliver the ring as security because But, if B proposes to pay only 160k for the car or to buy
there is no real contract of pledge yet. There is merely a instead another car or a land for S for 200k, his acceptance
consensual contract to constitute a pledge. What exists is is qualified and becomes a counter-offer. In this case, B is
a personal right, the right of action on the part of C to now the new offerer, and S the new offeree.
demand the constitution of the pledge. Topic: Withdrawal of offer where period stipulation for
Topic: Unauthorized contracts can be cured only ratification.
24. X offers to construct the house of Y for a very reasonable
16. D borrowed 10k from C in whose favor he executed a
price of 1M giving the latter 10 days within which to make
promissory note. In the note it is state that D is acting as
up his mind.
the agent of P and that the money is intended for P. P
never authorized D to borrow money from C.
X may withdraw the offer even before the lapse of 10 days,
unless Y has already accepted the offer. After acceptance,
In this case, the contract of D is not enforceable against P.
withdrawal is not possible as there no more offer to
However, P can subsequently approve or sanction the
contract unless it has been revoked by C. Ratification
cleanses the contract from all its defects from the moment
Even before acceptance, X may not withdraw the offer if
the contract was entered into. If the contract has already
the option is covered by a consideration as when Y paid or
been ratified by P, it can no longer be revoked by C.
promised to pay a sum of money to X for giving him the
Topic: When a person is bound by the contract of another. 10-day period. There is here an option contract. After the
10-day period, in the absence of acceptance, the offer
17. P authorized A to sell his car for 200k cash. A sold the car
becomes ineffective.
to C for 200k payable in 10 monthly installments.

In this case, P cannot be compelled by C to accept the Topic Mistake or error

monthly installments and to deliver the car because A
25. Mistake re object – A is buying from B a breeding cow but
acted beyond his powers unless there has been ratification
B is selling a barren cow.
by P. A is personally liable to C for damages.
26. Mistake re condition of the contract – A is selling his parcel
STUDY GUIDE QUESTIONS FOR CHAPTER I of land for 200k cash but B is buying the land thinking that
the price is payable in installments.
18. A and B entered into a contract not specifically provided in
27. Mistake re identity or qualifications –
the Civil Code. Is the contract valid and binding?  A sold his car to B. A thought that B was a lawyer, but
instead B was a doctor. The mistake here is not
19. S (seller) and B (buyer) entered into a contract of sale. It material as to avoid the contract.
was agreed that the price shall be determined by T, a third  A donated his car to B. A thought that B was his half-
brother. It turned out that B is not related to A. The
mistake as to the identity in this case is material If X does not want to sell the piano but he is compelled to
because his identity was the principal reason for the sell it because of his financial situation, the sale may be
donation. avoided on the ground of undue influence.

Topic: Effect of knowledge of risk. Topic Causal Fraud

28. B bought a parcel of land from S who informed him before 37. S offered to sell to B a ring, claiming that the stone on the
the contract was perfected that the land was involved in a ring is diamond. S knows that is not diamond but ordinary
litigation in which C is the claimant. glass. If B buys the ring relying on the truth of the
representation of S, the sale may be annulled on the
In case the land is recovered later on by C, B cannot allege ground of fraud.
mistake in his contract because he knew the risk that the
land might later on recovered by C. 38. S sold to B a parcel of land representing that the same was
absolutely free of all liens and encumbrances. S gave his
Topic: Mutual error as to the legal effect of an agreement
consent on the faith of B’s representation. When the sale
when the real purpose of the parties is frustrated, may
was registered, it was found that lis pendens notice was
vitiate consent (1334)
annotated on the title of the land.
29. D borrowed 10k from C. As security for the debt, it was
agreed that D should mortgage his parcel of land in favor Concealment constitutes fraud such as justifies that
of C. However, the document as written is one of avoidance of sale, and entitles B to damages.
antichresis, the parties erroneously believing that it has the
same effect as mortgage. In this case, the contract is 39. S sold to B a house and lot, misrepresenting that the place
voidable because there is no meeting of the minds. was easily accessible to means of public transportation.
The sale is voidable on the ground of fraud if B was
If the parties really agreed on a sale, but the document as induced to give his consent because of the representation.
written discloses a mortgage, there is meeting of the
minds but the document does not show their true If B purchased the property without any inducement from
intention. In this case, the remedy is reformation. S, his mistaken belief that it was accessible does not vitiate
30. C delivers as a deposit a movable property to D who consent because the error refers merely to an incidental
receives it as a loan. quality or condition.

Topic: Fraud by concealment.

Here, the mutual error is not on the legal effect but on the
nature of the contract entered into. D must return the 40. X and Y are partners engaged in the real estate business.
property as there is neither a deposit nor a loan. Here, the parties are bound by confidential relations. X
learned that C was interested in buying a certain parcel of
Topic: Nature of violence, and intimidation. land owned by the partnership even for a high price.
31. If X signs a document because every time he refuses he is Without informing Y, X was able to make Y sell to him his
hit by the butt of a gun which causes blood to flow from share in the partnership. Then, X sold the land at a big
his head, there is violence because serious or irresistible profit.
force is employed.
32. If X signs the document because a gun is pointed at him In this case, X is guilty of fraudulent concealment because
by Y who threatens to kill him, and he no reason to believe he as under the duty to make disclosure of facts having a
that Y will not carry out his threat, the intimidation would bearing on the value of the interests of Y in the partnership
vitiate consent. which were not known to Y.
33. But if X was merely intimidated that he would be shot by Y
and the latter had no gun at the time of the threat, there If the sale was at the initiative of Y and Y unintentionally
is no intimidation because the fear is not reasonable and failed to inform Y of C’s offer, the cause for annulment is
well-grounded. mistake or error on the part of Y.

Topic: Threat to enforce just or legal claim. 41. S sold to B stocks traded in the stock exchange at a certain
price. S believed that the price of the stocks would go
34. D owes C 5k. If D fails to pay his obligation, a threat by C
down at a certain price, and it did. This sale is valid because
that he would enforce collection through a court does not
S was not bound to make disclosure of his reasons for his
vitiate consent.

But if C knows that D is not obligated to him and D pays C Topic: Expression of an opinion.
5k or a larger amount because of the threat, there is
intimidation sufficient to vitiate consent. 42. X, a farmer, found a ring. He does not know anything about
precious stones. He sells the ring to Y honestly believing,
35. X committed a violation of law. Y threatens to report X to and telling Y that it a diamond ring.
the police unless the latter gives him 5k. Here, the threat
of Y amounts to intimidation because the claim is not just In this case, there is no fraud even if it turned out that the
or legal. ring is not diamond because his statement is merely an
expression of an opinion.
Topic: Undue influence
However, if X is an expert on precious stones and he sells
36. X, a tenant, is in need of 10k to pay his landlord who is
the ring to Y saying “I believe this is a diamond ring”, and
seeking to eject him for failure to pay the rents. X tries to
Y knowing that X is an expert, relies on his special
borrow form Y but the latter instead tells him to sell his
knowledge, the contract is voidable on the ground of
piano for 10k. X has nobody to turn to for assistance.
fraud. X being an expert, is making a misrepresentation of
fact and he cannot escape liability by expressing it in the 51. S sold to B commercial land for 1M. S assured B that it is
form of an opinion. certain that in two years’ time, the land would increase in
market value by 50% or 1.5M. It turned out that the market
Topic: Fraud by third persons.
value of the land even decreased to about 800k. Is S liable
43. B bought the land of S for 2k per sqm. The reasonable price to B for misrepresentation?
of lands in the same vicinity is 2, 500 pesos per sqm but S 52. Suppose in the same problem, what S sold to B, hardware
sold it only for 2k because C had deceived him regarding owner, are 500 bags of cement. S had every reason to
its market value. believe that the price of cement would go down. After two
weeks, it did go down. Has B the right to have the sale
In this case, the contract cannot be annulled unless it can annulled?
be shown that B was a party to the fraud.
44. B wants to buy a parcel of land on which to build a house. Topic: Quantity of object need not be determinate.
S owns a land on which he wants to construct a commercial
building. C tells B and S that the area where the land is 53. S sold to B all the chickens in his poultry. Here, the object
located is residential zone. B and S then enter into a chickens is determinate but the quantity though not yet
contract of sale. It turns out that the area is a commercial determined can be ascertained without the necessity of
zone. entering in a new contract.
54. S binds himself to deliver one of his carabaos to B. Here,
Under the facts, the sale may be annulled because of the object is determinable without the need of a new
substantial mistake which is mutual. contract between the parties. It becomes determinate the
moment it is delivered.
Topic: Misrepresentation in good faith. 55. If the subject matter of the agreement is a parcel fo
45. S sold a ring to B. S honestly believed that what he sold to agricultural land owned by S and S happens to own many
B was a diamond ring. It turned out that it was not a agricultural lands, the contract is void if the particular land
diamond ring. sold cannot be determined without a new agreement
between parties.
The misrepresentation of B is a mere mistake and contract 56. S obligates himself to sell to B for a price certain (4k) a
is voidable on the ground and not on the ground of fraud. specified quantity of sugar (200kgs) of a given quality (first
or second grade) without designating a particular lot of
Topic: Simulation of Contracts sugar.

46. D is indebted to C. Upon learning that C is going to enforce

The contract is not perfected until the quantity agreed
his credit, D pretended to sell his land to B, his father-in-
upon has been selected and is capable of being physically
law. D did not receive a single centavo for the transaction
designated and distinguished from all other sugar. In this
and he continued in possession of the land as the contract
case, the contract is merely an executory contract to sell.
was merely simulated.
The promise of S is to deliver a generic thing which
determinable. The moment it is delivered, it becomes
There is no contract of sale ins this as the parties do not
intend to be bound at all.
57. S obligates himself to deliver a “thing” or “property” to B.
47. D and C entered into a contract of mortgage. But wanting
The contract is void because the object is not determinate
to hide the mortgage, it was made to appear in the form
as to its kind, nor is it capable of being made determinate
of a deed of sale.
without the need of a new or further agreement between
the parties.
Here, there are two acts involved: the ostensible or
apparent act: the contract of sale, and the concealed or STUDY GUIDE QUESTIONS
hidden act: the contract of mortgage.
58. S sold to B for 100k a parcel of land belonging to S located
As far as D and C are concerned, the contract entered into in his hometown without specifying its exact location and
between them is a contract of mortgage. As to third area. Is the sale valid?
persons, the apparent contract, the contract of sale, is the 59. S has several pigs. Under the contract of sale, S binds
one entered into. Consequently, if C is the mortgagee but himself to deliver a pig to B for 3k if the pig has a weight
is made to appear as the buyer and C sells the land to B, of at least 30kgs. State the binding effect of the sale.
the latter will acquire ownership. D and C are estopped or
barred from claiming that the real agreement entered into
by them is a contract of mortgage. SECTION 3 – CAUSE OF CONTRACTS

STUDY GUIDE QUESTIONS Topic: Cause vs Motive

48. In a contract containing an option period, when is the 60. S sells his land to B for 100k. For S, the cause is the 100k.
offerer not allowed to withdraw his offer even before But his motive may be to use the money in business. The
acceptance by the offeree? When is the offerer allowed to motive which impel one to a sale or purchase are not
withdraw his offer even after acceptance? always the cause of the contract as that term is understood
49. S sold his house to B believing that B was C. Can S legally in law. With one’s motives, the law is not concerned.
withdraw from the contract on ground of mistake?
50. S agreed to deliver B 500 cavans of rice at 600 pesos per If the motive of S in selling his land is to defraud C, a
cavan. S delivered only 490 cavans deliberately creditor, who has a right to go after the land for its
misrepresenting that the delivery consisted of 500 cavans. satisfaction of an indebtedness of S, C may ask the court
Can B asked the court to annul the contract on the ground for the rescission or cancellation of the sale.
of fraud?
Topic: Falsity of cause. 70. Suppose the contract is a sale of real property but it is
entered into orally. The contract is valid but it is
61. D promised to give C 1k as payment for past services
enforceable because the law requires that it be in writing
allegedly rendered by C which in truth and in fact have not
to be enforceable.
rendered; or for a carabao which unknown to D is already
71. If the contract of sale is in private writing, there in is valid
and binding, although it is still executory, but only as
Here, the cause for D, the service remunerated or the
between the parties and not as against third persons
promise of C to sell the carabao, is erroneous as it is based
without notice until the sale is registered in the Registry of
upon facts believed to be existing, but really inexistent.

62. S sells to B a parcel of land. In the deed of sale, 1M is stated

If E is the vendee, he has the right to compel R to put the
as the price of the land. If this statement is false, then there
contract in a public instrument so that it can be registered
is no contract of sale.
to affect third persons, even in the absence of express
agreement between them to the effect. Inasmuch as the
However, if S can prove that the contract is founded upon
contract is both valid and enforceable, the execution of a
another consideration, as when B has exchanged his car
public instrument becomes a mere matter of form and
for the land, then the contract of barter shall be valid. In
this case, the statement of the price is simulated because
it is willfully made. STUDY GUIDE QUESTIONS
Topic: Cause presumed to exist and lawful. 72. Seller and buyer entered into a contract of sale of a parcel
of land. The sale is embodied only in a private document
63. M issued in favor of P a promissory note which recites:
and not in a public instrument because it was not
thirty days after date, I promise to pay P or order the
acknowledged before a notary public as required by law.
amount of 10”. Signed M.
Is the sale valid?
73. In the same example, what rights if any are acquired by the
Although the promissory note does not mention the
contracting parties?
consideration, the law presumes that M must have
received a consideration for the debt and that the same is
lawful. If M claims OW, then he has the burden to prove

Topic: Effect of lesion. Topic: Reformation vs Annulment

64. S sold to B his land worth 100k for only 80k. This contract 74. S sold his land to B. It was agreed that the sale will include
of sale is valid although the price is inadequate. The fact all the improvements. However, the contract as signed by
that the bargain is unequal because of inadequacy of price the parties, states that the land is being sold excluding the
when both parties are in a position to form an independent improvements thereon. In this case, the remedy is
judgment concerning the transaction is not sufficient reformation because there has been a meeting of the
ground for the cancellation of a contract. Profits or minds.
benefits gained through skillful bargaining are the basis of
free competition. If S was selling his land “excluding” the improvements and
B was buying his land “including” the improvements, there,
However, if it is shown that B induced S to sell the land there has been no meeting of the minds and the remedy
through fraud, mistake, undue influence, the contract may is annulment. Reformation cannot be the remedy because
be annulled in court. it would not make the instrument express the real
intention of the parties.

65. S sold his fishing boat to B who intends to use the boat for 75. S sold his horse “X” to B under written contract of sale.
smuggling. Is the contract of sale illegal? What B though S was selling him is horse “Y”. Can S ask for
66. S sold to B a specific parcel of land for 500k. B failed to the reformation of the contract against the object of B who
pay. Has C the right to have the sale declared void by the is agreeable to the sale of Horse X?
court on the ground of absence of cause for non-payment 76. Suppose in the same example, S was intending to sell his
of the price? Horse Y. Give the 3 cases when he can ask for the
67. X gave 10k to Y who signed a receipt stating: this is to reformation of the contract.
acknowledge payment by X in the amount of 12k. X later
complains that he received nothing from Y for the 10k. Is
Y bound to return the 10k? CHAPTER 4 – INTERPRETATION OF CONTRACTS
68. S sold his B to his car worth 250k for only 200k. There is no
Topic: Literal meaning controls.
question that the purchase price is grossly inadequate. Has
S the right to have the sale annulled? 77. One of the conditions specified in a fire insurance policy is
that “the insured must give notice of the existence of other
policies against fire upon the property insured; OW, the
CHAPTER 3 – FORM OF CONTRACTS policy shall be null and void”. The insured violated this
condition and the property was destroyed by fire.
Topic: Form for validity, enforceability and convenience.
Though the contract may be rather onerous, the insured
69. R donated real property to E in a private instrument. The
cannot recover. As its terms are clear an unambiguous,
donation is void because a donation of real property is
they must be taken in their plain and ordinary sense
required to be in a public instrument to be valid.
Obligations arising from contracts have the force of law Topic: Rule in case doubts impossible to settle; gratuitous
between the contracting parties. and onerous contracts.

Topic: Evident intention of parties prevails over terms of 84. R have his car to E. It is not clear whether the contract is a
contract. donation or commodatum.

78. S sold to B a parcel of agricultural land. It is not disputed The contract should be presumed as a mere commodatum
that the reasonable value of the land is 50k. However, the because it would transmit lesser rights that a donation
contract of sale states that the purchase price is 500k. since R retains his ownership of the car.
85. D borrowed from C 5k at 12% interest. It cannot be
In this case, as the amount of 500k appears to be contrary determined from the terms of the contract whether the
to the evident intention of the parties, the latter shall loan is payable in 6 months or in 1 year.
prevail (50k).
It must be assumed that the period agreed upon is 1 year
79. R entered into a contract called “contract of lease” with E which results in a greater reciprocity of interests since D
whereby R leased his car to E. It is stipulated that E shall can use the money for one year, and C can earn interest
pay 100k upon the signing of the contract, and 5k by way due for one year instead of only 6 months.
of “rental” on or before the 5th fay of every month and that
at the end of one year, E would become the absolute STUDY GUIDE QUESTIONS
owner of the car. The contract fixed the value of the car to
86. S Sold to B his condo unit “including all its contents”. In the
be 160k.
unit, there is an antique chair belonging to X which X
agreed to sell to S. Is the chair included in the sale of the
There can hardly be any question that the contract is not a
lease of the car, but a sale on installments. The so called
87. X, architect, designed and supervised the construction of
rent must necessarily be regarded as payment of the price
the house of Y. The parties failed to agree beforehand the
in installments inasmuch as the due payment of the agreed
professional fee of X. How much is Y bound to pay X?
amount results, by the terms of the bargain, in the transfer
of title to E, the alleged lessee.
88. Suppose in the same problem, the professional fee was
Topic: Contemporaneous and subsequent acts. agreed upon, but it is not clear from the written contract
prepared by X upon the requires of Y whether it should be
80. R and E entered into a contract entitled “Contract of Lease” fixed amount of 200k or 1% of the cost of construction.
Although the contract refers to R as lessor, and to E as How much is Y liable to pay?
lessee, it states that the possession and ownership of the
land are transferred to E. The title to the land was given by
R to E who registered the land in his name. Before the date
of the contract, E wrote a letter to R offering to buy the

By their acts, the parties clearly indicated their evident

intention to make E the owner of the land. Hence, the
contract should be interpreted as one of sale.

Topic: Special intent prevails over general intent.

81. S sold parcels of land to B. IN the deed of sale, the

description stated a greater extension that the actual area
of the lands sold thereby including a piece of land
belonging to C.

This piece of land cannot be among the subject matter of

the sale simply because it was included in the description.

82. R mortgaged his land to secure the debt of D to C, without

expressly assuming the personal liability for the debt. In
case there is deficiency remaining after the mortgage is
foreclosed, R cannot be compelled to pay the same.

Topic: Interpretation of various stipulations.

83. R leased his house to E. In the contract, it was stated that

E should not sublease the house without the written
consent of R. Another stipulation stated that E should pay
1k as additional rent should he violate this condition. E
subleased the house without the consent of R. Has R the
right to eject E?

No, in the light of the clause stating the penalty for the
violation of the condition.