RFBT

ARTICLE 1156 – An obligation is a juridical necessity to give, to do or not to

do.

ARTICLE 1157 - Obligation arises from:

Law, Contracts, Quasi Contracts, Delicts, Quasi Delicts

ARTICLE 1158 – Obligation derived from law are not presumed. Only those
expressly determined in this code or in special laws are demandable, and
shall be regulated by the precept of the law which establishes them; and as to
what has not been foreseen, by the provision of this book.

ARTICLE 1163 – 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 stipulation of the parties required another standard of care.

ARTICLE 1166 – the obligation to give a determinate thing includes that of

delivering all its accessions and accessories, even though they may not have
been mentioned.

ARTICLE 1191 – the power to rescind obligation is implied in reciprocal ones,

in case one of the obligors should not comply with what is incumbent upon him.

The injured party may choose between fulfilment or rescission, with the
payment of damages in either case. He may also seek rescission even after he has
chosen fulfilment if the latter should become impossible.

The court shall decree the rescission claimed, unless there be just cause
authorizing the fixing of the period.

This is understood to be without prejudiced to the right of the third

persons who have acquired the thing, in accordance with the articles 1385 and
1388 and the Mortgage Law.
ARTICLE 1231 – Obligations are extinguished;

- By payment or performance;
- By the loss of the thing due;
- By the condonation or remission of the debt;
- By confusion or merger of the right of the creditor and debtor;
- By compensation;
- By novation;
And other causes of extinguishment of the obligation, such as annulment,
rescission, fulfilment of a resolutory condition and in prescription are
governed elsewhere in this code.

ARTICLE 1305 – a contract is a meeting of minds between two person where by

one binds himself with respect to the other, to give something or to render
some services.

ARTICLE 1306 – the contracting parties may establish such stipulation,

clauses, terms and conditions as they may been convenient provided that they
are not contrary to law, morals, good customs, public order and public
policy.

ARTICLE 1308 - the contract must bind both the contracting parties, its
validity or compliance cannot be left to the will one of them.

ARTICLE 1311 – Contract take effect only between the contracting parties,
their assigns and heirs, except in case where the rights and obligations are not
transmissible by their nature, or by stipulation, or by provision of law. The heir is
not liable beyond the value of the property he received from the decedent.

If a contract contain some stipulation in favor of a third person, he may

demand fulfilment provided he communicated his acceptance to the obligor before
its revocation. A mere benefit or interest of a third person is not sufficient. The
contracting parties must have clearly and deliberately conferred a favor upon a
third person.
ARTICLE 1315 – Contracts are perfected by mere consent, and from the
moment the parties are bound not only to the fulfilment of what has been expressly
stipulated but also to all the consequences which, according to their nature, may
be keeping with good faith, usage and law.

ARTICLE 1318 – there is no contract unless the following requisites concur.

- Consent of the contracting parties;

- Object certain which is the subject matter of the contract;
- Cause of the obligation which is established.
-

ARTICLE 1319 – Consent is manifested by the meeting of the offer and

acceptance upon the thing and the cause which are to constitute the
contract. The offer must be certain and the acceptance absolute. A qualified
acceptance constitutes a counter-offer.

Acceptance made by letter or telegram does not bind the offerer except
from the time it came his knowledge. The contract, in such a case, is presumed to
have been entered into in the place where the offer is made.

ARTICLE 1347 – All things which are not outside the commerce of men,
including future things, may be the object of a contract. All rights which are not
transmissible may also be the object of the contract.

No contract may be entered into upon future inheritance except in cases

expressly authorized by law.

All services which are not contrary to law, morals, good customs, public
order and public policy may likewise be the object of a contract.

ARTICLE 1350 – In onerous contracts the cause is understood to be, for each
contracting party, the prestation of a promise of a thing or service or benefits which
is remunerated; and in contracts of pure beneficence, the mere liability of the
benefactor.
ARTICLE 1390 - the following contracts are voidable or annullable, even though
there may have been no damage to the contracting parties;

1. Those where one of the parties is incapable of giving a consent to a

contract;
2. Those where the consent is vitiated by mistake, violence, intimidation,
undue influence or fraud.

These contracts are binding, unless they are annulled by a proper action in
court. They are susceptible of ratification.

ARTICLE 1409 – the following contracts are inexistent and void from the
beginning.

1. Those whose cause, object or purpose is contrary to law, morals,

good customs, public order and public policy;
2. Those which are absolutely simulated or fictitious;
3. Those whose cause or object did not exist at the time of the
transaction;
4. Those whose object is outside the commerce of men;
5. Those which contemplate an impossible service;
6. Those where the intention of the parties relative to the principal object
of the contract cannot be ascertained;
7. Those expressly prohibited or declared void by law.

ARTICLE 1767 - By the contract of partnership two or more persons bind

themselves to contribute money, property, or industry to a common fund, with the
intention of dividing the profits among themselves.

Two or more persons may also form a partnership for the exercise of a profession.
(1665a)

ARTICLE 1768 - The partnership has a juridical personality separate and

distinct from that of each of the partners, even in case of failure to comply with the
requirements of article 1772, first paragraph. (n)
ARTICLE 1770 - A partnership must have a lawful object or purpose, and
must be established for the common benefit or interest of the partners.

When an unlawful partnership is dissolved by a judicial decree, the profits

shall be confiscated in favor of the State, without prejudice to the provisions of the
Penal Code governing the confiscation of the instruments and effects of a crime.
(1666a)

ARTICLE 1771 - A partnership may be constituted in any form, except where

immovable property or real rights are contributed thereto, in which case a public
instrument shall be necessary. (1667a)

ARTICLE 1777 - A universal partnership may refer to all the present property
or to all the profits. (1672)

ARTICLE 1778 - A partnership of all present property is that in which the

partners contribute all the property which actually belongs to them to a common
fund, with the intention of dividing the same among themselves, as well as all the
profits which they may acquire therewith. (1673)

ARTICLE 1784 - A partnership begins from the moment of the execution of the
contract, unless it is otherwise stipulated. (1679)

ARTICLE 1786 - Every partner is a debtor of the partnership for whatever he

may have promised to contribute thereto.

He shall also be bound for warranty in case of eviction with regard to specific
and determinate things which he may have contributed to the partnership, in the
same cases and in the same manner as the vendor is bound with respect to the
vendee. He shall also be liable for the fruits thereof from the time they should
have been delivered, without the need of any demand. (1681a)

ARTICLE 1790 - Unless there is a stipulation to the contrary, the partners shall
contribute equal shares to the capital of the partnership. (n)

ARTICLE 1791 - If there is no agreement to the contrary, in case of an

imminent loss of the business of the partnership, any partner who refuses to
contribute an additional share to the capital, except an industrial partner, to save
the venture, shall he obliged to sell his interest to the other partners. (n)

ARTICLE 1793 - A partner who has received, in whole or in part, his share of a
partnership credit, when the other partners have not collected theirs, shall be
obliged, if the debtor should thereafter become insolvent, to bring to the
partnership capital what he received even though he may have given receipt
for his share only. (1685a)