1156-1162
work against the other party for 5
1. In MARTIN vs. MARTIN, the Court
held that where the parties to a
compromise agreement signed and
executed the same willingly and
voluntarily, they are bound by its
terms, even if the court before which
it was made had no jurisdiction over
the case. In a regime of law and
order, the repudiation of an
agreement validly entered into
cannot be made without any
justifiable reason.
2. The right to enter into lawful
contracts constitutes one of the
liberties of the people of the State. If
that right be struck down or
arbitrarily interfered with, a relation which arises from a lawful,
substantial impairment of
constitutional rights would result
(People vs. Pomar, 46 Phil 440)
a. In contracts where public
interest is involved, the
government has the right to
intervene for the protection of
the whole (Leyte Land Trans.
Vs. Leyte Farmer’s Union,
GR L-1977)
3. In Conrado vs Judge Tan, the Court
ruled that only the additional
provisions inserted should be
disregarded and not the original
terms in a validly made contract,
where some provisions were later on
inserted by a falsifier.
4. Pactum Commissorium is the
automatic appropriation of the thing
pledged or mortgaged upon the
failure of the debtor to pay for the
obligation.
5. In Ollendorf vs. Abrahamson, the
Court ruled that a stipulation in the
contract restricting a contracting
party from engaging in competitive
years is valid and reasonable.
Parties may enter into any
stipulations, and such shall have the
force of law between them, provided
that they are not contrary to law,
morals, good customs, public order
or public policy.
6. Innominate Contracts
a. Do/des – Give
b. Facio/facias – Do
7. In Aldaba vs CA the Court ruled that
when a person does not expect to
be paid for his services, there cannot
be a contract implied in fact to give
compensation for such services.
8. Quasi Contracts is that juridical
unilateral, and voluntary act which
has for its purpose the payment of
indemnity to the end that no one
shall be unjustly enriched or
benefited at the expense of another.
9. Negotorium gestio takes place when
a person takes charge or another’s
abandoned business or property
without the owners authority.
10. Solutio indebiti takes place when
something is received when there is
no right to demand it. The recipient
has the duty to return it.
11. If the obligation arises from law,
contract, quasi-contract, or quasi-
delict, a person may file an
independent civil action without
making any reservation.
12. If an obligation arises from delict, a
person must make a reservation
before he can file an independent
civil action in accordance with
Section 1 of Rule 111 of the Rules of
Court together with Article 100 of the
Revised Penal Code.
13. In Sales vs Balce, the court held that
parents may be held subsidiary
liable for the act of their child who
committed a crime with discernment
should they fail to prove due
supervision.
14. Civil Liability arising from crime
includes restitution, reparation for
the damage causes, and
indemnification for consequential
damages.
15. An accused acquitted in a criminal
case can still be held civilly liable if
a)the acquittal is through an
exempting circumstance or b)if there
is an independent civil action
allowed by law, and the defedant’s
liability is proved by mere
preponderance of evidence.
16. In Padilla vs. CA, the Court ruled
that a person acquitted on
reasonable doubt may still be in the
very same case be held liable for
damages if warranted by the
evidence that had been adduced.
17. In Badiong vs. Judge Apalisok, the
Court ruled that in a criminal case,
civil liability may be claimed even if
there is no specific allegation of
damages in the information or
complaint that has been filed.
18. A quasi-delict is a fault or act of
negligence which causes damages
to another, there being no pre-
existing contractual relations
between the parties.
19. Under the Civil Code, negligence is
the omission of that diligence which
required by the circumstances of the
person, place, and time.
20. Elements of quasi-delicts
a. Act or omission
b. Injury or damage
c. Fault and Negligence
d. Proximate Cause
e. No pre-existing contractual
relations between the parties
21. In Amadora vs CA, the Court has
held that teachers or head of school
of arts and trade may be held liable
in a civil action for torts committed
by one of their students when said
incident occurred in their premises.
In that case, the court ruled that
what is important in determining
existence of responsibility is to
determine whether that the student
is within the school’s custody. In that
case, the court likewise held that
there is no distinction as to the
diligence required between
academic and non-academic
institutions and suit for torts will
prosper in any of said institutions.
However, as the court interpreted art
2180 of the Civil Code in that case, it
has held that there still lies a
distinction as to will be held liable. In
that case the court held that a
teacher in an academic institution
may be held liable for his students
torts while it is the head in the
institution for arts and trade.
NATURE AND EFFECTS OF
OBLIGATIONS
1. Diligence of a good father
pertains to that diligence
required by the circumstances of
the person, place, and time.
a. Reasonably prudent
person would exercise
over his own property.
2. Under the Civil Code, every
person obliged to give something
is also obliged to take care of it
with the proper diligence of a
good father of a family unless
 the law or the stipulations of the v. Execution of legal
parties requires for another forms and
standard of care. solemnities –
3. The creditor has a right to the execution of
fruits of the thing from the public instrument
moment the obligation arises. 5. A thing is determinate if is
However, he shall acquire no particularly designated or
real right over it until the same physically segregated from all
has been delivered to him other things of the same class
a. When a person is obliged 6. A thing is generic when it is
to give something, the designated by its class or genus
obligee already has a 7.
personal right over the
fruits. However, real right
does not transfer until the
said thing has been
delivered to the obligee.
b. Exception
i. When the parties
made a stipulation
as regards the
right of the
creditor to the
fruits of the thing
ii. When the
obligation is
subject to
suspensive
condition or
period
4. Kinds of delivery
a. Actual delivery
b. Constructive delivery
i. Simbolica -
symbols
ii. Longa manu -
pointing
iii. Brevi manu –
possessor
becomes owner
iv. Constitutom
possesorium –
possessor looses
ownership