Obligations and Contracts

Obligations and Contracts: Modules 1-5
Module 1
Article 1156 of the Civil Code of the Philippines,
- New Civil Code of the Philippines
- mga batas na nagsasaad kung pano makitungo sa bawat isa
- took effect on August 30,1950
An obligation is a juridical necessity to give, to do or not to do.

- juridical necessity: maari kang i-demanda sa korte kung hindi mo na-comply yung naipangako
mong gagawin mo sa ibang tao
● A civil obligation is enforceable by court action unlike natural obligations.
Natural obligations are civil obligations but because of the long passage of time, your rights about that
subject matter “expire” or be prescribed.
Example of prescriptive period:

- obligations arising from a written contract
Under the Law, 10 years lang bago mag prescribed yung rights mo.
● ex: ikaw ay nagpautang, at yung utang na yon ay nasa written contract, sabi sa batas sa loob ng 10
years you need to do things and exert effort such as give a demand letter for you to collect yung
mga utang sayo. After 10 years nag-eexpire or nag-prescribe na ang karapatan mong makakolekta
● May civil obligation ka at yung nangutang sayo sa loob ng 10 years
● After 10 years kung wala kang ginawang paniningil ng utang, yung civil obligation mo magiging
natural obligation na lang
○ May obligation pa rin siyang magbayad sayo pero hindi mo na siya pwedeng kasuhan
○ Voluntarily na lang yung pagbabayad niya sayo since nagprescribed na yung katapatan
mo, hindi mo na siya pwedeng takutin na dadalhin sa korte
● Question: Yung mga utang ba na nag prescribed na pwede pa rin bayaran?
○ YES especially if the payor is voluntarily paying even after the prescriptive period
● Question: What if after ng bayaran bigla siyang nagipit and kailangan na niya ulit yung pera?
Pwede niya ba bang bawiin sayo yung binayad niya na sayo dati para sa isang nagprescribed na
utang?
○ NO hindi na pwedeng bawiin. The amount paid sa isang natural obligation na lamang ay
hindi na pwede ma-recover kasi it’s considered a valid payment.
○ The manner of paying is an admission on the part of the debtor na may kailangan pa
siyang bayaran na utang. Kahit nagprescribed or nag-expire na, in-acknowledge pa rin
niya na may utang pa siya and bawal na bawiin yung binayad nya.
Requisites/ Elements of an obligation:

a. Active subject (creditor or obligee) - the party who has the right to demand performance of the
obligation
○ Sa oras ng singilan, siya yung mas may gustong may push through yung event kaya
active subject
b. Passive Subject (debtor or obligor) - the party who is required to perform the obligation
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○ Ang mga may utang usually tahimik lang hangga’t hindi ka pa sinisingil or hindi agad
mag-volunteer kasi ikaw yung mawawalan ng pera. Tahimik: passive
c. Prestation (object or subject matter) - it may consist of giving, doing, or not doing something.
○ ito yung kailangang gawin
d. Efficient cause (vinculum juris or juridical tie) - that which binds the parties of an obligation
○ Reason why need gawin ni passive subject yung obligation niya kay active subject
Illustration:
Through a contract of loan, Diego borrowed P1,000,000 from Cardo a year ago. On the maturity date,
who/what is the active subject, passive subjective, prestation and the efficient cause?
● Active subject: Cardo
● Passive subject: Diego
● Prestation: the giving of P1,000,000
● Efficient cause: contract of loan
Forms of an obligation:
a. Oral
b. In writing
c. Partly oral and partly in writing
Kinds of obligation according to the subject matter

a. Real Obligations
○ latin word “res”- object
○ Real obligations is the giving of an object
○ represents to give
○ Example: magbigay ka, magdeliver ka ng cellphone
b. Personal Obligations
1. Positive personal obligation
■ represents to do
■ Gumawa ng bahay, kumanta sa concert
2. Negative personal obligation
■ represents not to do
■ Huwag mong gawin yung bagay na yon
■ Huwag mong harangan yung daanan ng kapitbahay (right of way)
Sources of Obligation:
Article 1157. Obligations arise from:
1. Law
○ It is a rule of conduct, just and obligatory, laid down by legitimate authority for common
observance and benefit.
○ Article 1158
- Obligations 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
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precepts of the law which established them; and as to what has not been foreseen,
by the provisions of this Book.
- not presumed: dapat may actual or specific law bago mo masabi na may
obligation ang tao
- Example: Tax Laws or Train Law - obligation to pay taxes
- Family Code of the Philippines: obligations of family members to each other
- Obligation ng mga magulang na alagaan ang mga anak lalo na ang mga
menor de edad kasama na dito ang pagbigay ng sustento
- Civil obligation and criminal liability ang hindi pagbibigay ng sustento
2. Contracts
○ It is the meeting of the minds between two or more persons or more persons whereby one
binds himself with respect to the other to give something or to render some service.
○ At any time that there is a meeting of the minds or si buyer at seller magkapareho sila ng
pananaw or they came into an agreement, meron na silang contract
○ Article 1159
- Obligations arising from contracts have the force of law between the contracting
parties and should be compiled with in good faith.
- Once may contract, such as contract of sale, may force of law. Para sa inyo
(buyer and seller), yon ang batas and anoman ang nailagay sa contract as long as
it is not contrary to law, public morals, policy and good customs pwede,
mag-stipulate (demand or specify) kung ano gusto niyo ilagay na provisions sa
contract.
3. Quasi-Contracts
○ They refer to certain lawful, voluntary and unilateral acts giving rise to a juridical relation
to the end that no one shall be unjustly enriched at the expense of another.
○ “Parang contract” hindi siya full-pledged contract because of “unilateral” - isa lang ang
nag decide to push through unlike sa regular contract na bilateral
○ The two most common examples are:
■ Negotiorum gestio
- This refers to the voluntary administration of the property, business or
affairs of another without his consent or authority. There is now an
obligation to reimburse the gestor for the necessary and useful expenses.
- Example: nagpunta sa ibang bansa yung kapitbahay mo tapos biglang
nagkaroon ng calamity, and nasira yung bubong ng mga hawla ng hayop,
so there is a tendency na makatakas sila. Bilang mabuting kapitbahay, on
your own initiative, pinaayos mo yung hawla ng hayop
- Ikaw lang, unilaterally, ang nagdecide
- Upon returning of your neighbor, may obligation na siya to reimburse
yung mga ginastos mo even though initially he didn’t give any approval
- Question: what if sinabi ng kapitbahay mo na bakit mo pinaayos,
sino nagbigay ng consent? ANG BATAS MISMO ANG
NAGSABI OR NAGBIGAY NG CONSENT.
- Ang point of view ng batas is if yung may-ari ang nasa bahay
and nakikita niya na sira na ang hawla, yon din naman ang
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gagawin niya. And kung may ibang tao na gumawa non para
sayo, it is your obligation to reimburse.
■ Solutio indebiti
- This refers to the payment by mistake of an obligation, in excess of what
should have been paid or payment to a person not due to receive it.
- Namali ang bayad or sumobra ang bayad, may obligation tayo na ibalik
ito.
- Hindi ka pwedeng makinabang at the expense of another person.
4. Delicts
- These are acts or omissions punishable by law. This refers to crimes or felonies defined
under the law to be punishable as such.
- Revised Penal Code: laws about crimes, special penal laws
- Pinagmumulan ng obligation ang crimes kasi may criminal liability na makukulong ka at
meron ding civil liability na kailangan may babayaran ka
- A person that is criminally liable is also civilly liable.
- Example: crime of arson (panunuyog ng bagay na pagmamay-ari ng ibang tao)
makukulong ka na at kailangan mo pa i-reimburse yung halaga ng nasunog mo
5. Quasi-Delicts
- tort or culpa aquiliana
- There are acts or omissions that cause damage to another. There being fault or negligence
but without any existing contractual relation between the parties. There is now an
obligation to pay for damages.
- “Parang crime”
- Intent: meron sa crime wala sa quasi-delict
- Sa crime, nandon yung intention mo na makasakit
- Sa quasi-delict walang intention na makasakit pero nakasakit ka pa rin due to
negligence
- Example: nagmamaneho ka ng sasakyan pero dahil sa pagmamadali ka, nakasagasa ka
(wala kang intent pero dahil sa negligence mo nakaasksidente ka) so you have to pay for
the damages such as bill sa hospital
Nature and Effect of Obligations

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 the stipulation of the parties requires another
standard of care.
- tulad ng isang pag-aalaga ng isang ama sa isang pamilya: gagawin mo ang lahat para hindi
mapahamak ang iyong mag-ina
- Example: nagtitinda ka ng pets at may bumili sayo ng aso tapos iddeliver mo sa buyer
next week. Hindi porket bayad na, pababayaan mo na lang yung aso. Proper diligence of
a good father of a family implies na kailangan alagaan mo pa rin siya.
- Unless nanghihingi pa ng higher standard of care
- Example: everytime sumasakay tayo sa jeep and other public transportation, we enter a
contract of carriage. Under the law, it requires the kind of care na extraordinary diligence,
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ibig sabihin na ganon ka dapat alagaan ng mga transportation vehicles. Pinapangako ng

drivers na safe ka makakarating ka sa pupuntahan mo and if naaksidente kayo, that is a
breach of contract dahil hindi nasunod ng driver yung extraordinary diligence
- Pagsasakay ka ng jeep at hindi ka pa nakakaupo at nasubsob ka, liable pa rin
yung driver dahil hindi niya in-exercise yung extraordinary diligence. It is a
violation to take good care of the passengers.
Determinate/specific thing vs. Generic thing

● A thing is considered to be determinate if it is particularly designated and physically
segregated from all other objects of the same class.
Example:
1. I will give you a Toyota vios with plate number ABC123. - Naging mas specific with the plate
number kasi bawat kotse ay may plate number but sya lang yung may number na ganon.
2. I will give you a house located at 54B Scout Tuazon, Quezon City. (Specific because of the
location)
3. I will give you the pen that I am holding right now. - Kahit hindi mo pangalanan, but you are
pertaining to a specific object.
● A generic thing is identified only by its species. The debtor can give anything of the same class
as long as it is of the same kind.
Example: I will give you a car. - Generic object kasi maraming uri ng kotse.
You need to identify kung ano ang determinate or specific kasi yun yung kailangan mo alagaan sa
obligation mo. Correlating sa example in the pet shop: hindi lang basta aso yung aalagaan mo, kundi si
Casper na binili mo. And if hindi i-specify like: I will give you a dog; pwedeng hindi mo alagaan ng todo
yung aso kasi kung mamatay man, matutupad mo pa rin yung pangako or obligation mo na magbigay ng
aso.
- Genus nungram perit: genus never perishes, na kahit mamatay yung aso may iba pa
namang aso sa ibang lugar
What are the obligations of a debtor obliged to give a determinate thing?

1. To take good care of the thing with the diligence of a good father of a family unless
the law or agreement of the parties requires another standard of care.
2. To deliver the thing.
- Ang delivery ng subject matter ang nakapagpapalit ng ownership
- Pag nadeliver na ni seller kay buyer yung subject matter, that’s the only time na nalilipat
yung ownership.
3. To deliver the fruits of the thing.
a. Natural fruits: they are the spontaneous products of the soul and the young and other
products of animals.
- tumubo na lang nang hindi na kailangan ng tulong ng tao
- anak ng hayop (puppy, cattle)
- hayop na ipinanganak na may tulong ng veterinary
- Under the law, ang mga hayop ay natural fruits
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b. Industrial fruits: they refer to those produced by land of any kind through cultivation or
labor.
- kailangan ng tulong ng magsasaka bago tumubo (palay, mais, tobacco)
c. Civil fruits: refer to fruits that are the result of a juridical relation.
- Interest income, fruit from the loan
- Rent income, from your property
Article 1164
- The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises.
However, he shall acquire no real right over it until the same has been delivered to him.
- In this instance, the creditor is considered a buyer or the active object
- Illustration: On August 1, Mr. A promised to give a specific dog to Mr. B. Based on their
agreement, the dog should be delivered to Mr. B on August 15. Unfortunately, the dog was
delivered on August 31. Unknown to Mr. B, the dog gave birth to 3 puppies on August 21. Who
should be entitled to the three puppies?
- Under the law, lahat ng fruits of the right kay creditor dapat from the time the obligation
to deliver it arises. So on August 15, lahat ng fruits (natural fruits) ng dog are entitled to
Mr. B kahit na nanganak sa bahay ni Mr. A.
- What if the dog gave birth on August 10? The puppies are entitled to Mr. A kasi hindi pa
dumarating yung time para i-deliver yung dog.
- If hindi napag-usapan yung date of delivery sa isang contract of sale, dapat itong
madeliver immediately. Example: if the dog gave birth the night before your supposed
delivery, the puppies are entitled na sa buyer. (Kasi immediately demandable yung
delivery kung walang napag-usapan.)
Personal right VS Real right

● Personal right is the right to demand from another, the fulfillment of the latter’s obligation to
give, to do or not to do.
● Real right is the right or interest of a person over a specific thing without a definite passive
subject against whom the right may be personally enforced. It is binding against the whole world.
Example:
Si seller may ibinentang specific dog, hanggang hindi pa naiddeliver ni seller yung specific dog kay
buyer, ang tanging meron lang si buyer mula kay seller dahil may perfected contract naman is personal
right. Hanggang wala pa sa kanya yung aso, wala pa siyang karapatan don sa aso. Since personal right
lang meron siya, pwede niya kulitin si seller na ideliver na yung dog, pwede siya magdemand or ilaban
against that person. Ang real right naman, magkakaroon ka nito pag na-deliver na yung mismong aso
sayo. Yung karapatan niya sa aso pwede niya na ilaban against the world world. Ikaw na yung mismong
owner since na tanggap mo na upon delivery, kaya hindi na pwedeng kunin sayo. If ever may kumuha
nung aso sayo, pwede mo na kasuhan.
Yung personal right mo magiging real right pag na-delivery na sayo. Pag wala pang delivery, ang pwede
mo lang habulin ay yung nagtitinda.
- Ownership over properties are acquired and transmitted by delivery.
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Accessions VS Accessories
Article 1166
- The obligations to give a determinate thing includes that of delivering all its accessions and
accessories, even though they may not have been mentioned.
● Accessions: they are everything that is incorporated or attached to a thing, either naturally or
artificially.
○ Example: bumili ka ng lupa and may nakatanim na puno ng mangga. Kahit hindi sinabi
sa contract kung kasama yung puno sa pagmamay-ari mo o delivery, kasama ito dahil ito
ay considered na accession kasi naka-incorporate ito sa lupa. But kung explicitly sinabi sa
contract na hindi kasama yung puno ng mangga, hindi ito kasama sa delivery.
● Accessories: those joined to or included with the principal thing for the latter’s better use,
perfection or enjoyment.
○ Example: wristwatch. The principal thing is the watch itself and the strap is considered an
accessory kasi hindi mo ito magagamit ng matino without the strap.
○ Cellphone. Yung battery considered as an accessory kasi pag tinanggal mo yung battery
hindi na gagana yung cellphone.
● Yung accession kahit tanggalin mo, kaya pa mag-function nung principal object but yung
accessory if tinanggal mo, (may effect sa principal object) hindi mo na magagamit or ma-eenjoy
nang maayos yung principal object.
○ Jelly case of a cell phone: accession
Remedies of the creditor

● If the debtor fails to perform his obligations to deliver a determinate thing:
○ To compel the debtor to make the delivery
○ To demand damages from the debtor
Yan lang option mo because it is a determinate thing, hindi pwedeng bumili sa iba kasi specific
yon
● If the debtor fails to perform his obligation to deliver a generic thing:
○ To ask that the obligation be complied with at the expense of the debtor.
■ Sa iba na bibili, pero si seller na ang magsshoulder ng expenses
○ To demand damages from the debtor.
Pwede mong hanapin sa ibang seller yung bagay, kasi meron pang same kind sa iba.
● If the debtor fails to perform his obligation in obligations to do:
○ If the debtor fails to perform the obligation or performs it but contravenes the tenor
thereof, the creditor may have the obligation executed at the expense of the debtor or he
may also demand damages from the debtor.
■ Nag-usap kayo ng karpintero na magpapagawa ka ng bahay, pero biglang ayaw
nya na. As a customer pwedeng sa ibang karpintero mo na ipagawa pero yung
charges shoulder na nung unang karpintero. Pero kung hindi ka makahanap ng
iba, pwede mong singilin sa damages. Hindi mo siya pwedeng pilitin gawin yung
bahay kung labag na sa loob niy dahil it is a violation of his right against
involuntary servitude.
○ If the debtor performs the obligations but does it poorly, the creditor may have the same
be undone at the debtor’s expense or he may also demand damages from the debtor.
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● If the debtor does what has been forbidden him:

○ The creditor may demand that what has been done be undone but at his expense.
○ He may also demand damages from the debtor.
Grounds for liability to pay for damages:

Article 1170
- Those who in the performance of their obligation are guilty of fraud, negligence or delay, and
those who in any manner contravene the tenor, thereof, are liable for damages.
Damages VS Injury
Damages: refer to the harm done or the sum of money that may be recovered in reparation for the harm
done.
- sum of money na makukuha mo sa perwisyong napala
- harm done: may isang criminal na sumunog ng bahay mo/ na-damage bahay mo, ang damage ay
tumutukoy sa naging pinsala sa iyong ari-arian dahil sa ginawa ng ibang tao
Injury: refers to the wrongful, unlawful or tortious act which causes loss or harm to another. It is the legal
wrong to be redressed.
- focused sa karapatan mong na-violate
DAMNUM ABSQUE INJURIA

- Damage without injury
- Normal scenario: nasira yung property mo, na-violate karapatan mo
- Example: sinunog yung kotse mo: na-damage yung kotse mo kasi sinunog, na-injure kasi
na-violate yung karapatan mo bilang may-ari
- But hindi sa lahat ng pagkakataon, sa damage may injury
- Example: ikaw ay isang squatter, kapag pinapaalis na kayo ng may-ari dahil gagamitin na niya
yung lupa and hindi kayo sumunod, magpapadala sila ng demolition team. Pag inararo yung
barong-barong niyo, may damage pero legally wala kang karapatan masaktan, walang injury dahil
una pa lang alam mo nang ganon yung mangayayari dahil hindi naman talaga sa inyo yung lupa.
Kinds of damages:
1. Actual/ Compensatory Damages
- These refer to the pecuniary loss that was actually incurred by the plaintiff. It includes the actual
value of the loss suffered and profits not realized.
- Example: ikaw ay nakaaksidente ng dumadaan, pag siya ay naospital, yung gastos niya sa ospital
ay actual damages.
- Sa Actual/ Compensatory Damages, bago siya makahingi ng danyos need niya ng proof of actual
damages or resibo ng gastos
2. Moral Damages
- They include physical suffering, mental anguish, fright, serious anxiety, besmirched reputation,
wounded feelings, moral shock and social humiliation
- Example: mga pinagsamantalahan, may karapatan silang humingi ng moral damages
- As an accountancy student kahit naramdaman mo na yan, hindi mo pwedeng kasuhan ang school
mo dahil sa damnum absque injuria, damage without injury, hindi na-violate yung karapatan mo
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dahil expected mo na dapat yon na mahihirapan ka sa accountancy and dahil wala namang namilit
sayo hindi ka entitled sa moral damages
3. Nominal Damages
- Damages awarded to a party whose right has been violated
- Hindi ganon kalaki yung damages to the point na hindi kailangan malaman yung actual damages
- Example: nagkabanggan kayo and maliit lang naman gasgas, inaareglo na lang nila, tinatansya na
lang and nag aagree sa amount. Such as 2k na lang yung ibabayad sa gasgas, yon yung nominal
damages, hindi na kailangan ng resibo
4. Temperate or moderate Damages
- they are more than nominal but less than actual damages. The court may award temperate
damages if the court finds some pecuniary loss has been suffered but its amount cannot, from the
nature of the case, be proved with certainty.
5. Liquidated Damages
- Damages agreed upon by the parties to a contract, to be paid in case of breach.
- Sa simula pa lang ng contract, pinag-uusapan na nila na kung may hindi sumunod sa contract,
magbabayad ng damages
- Hindi na kailangan i-prove na yung effect or abala sayo ay nagkakahalaga ng *200,000 kasi sa
simula pa lang, napag-usapan niyo na kapag may hindi sumunod or gumawa ng obligasyon niya
ganong amount ang babayaran niya
6. Exemplary or corrective Damages
- These are imposed by way of example or correction for public good, in addition to the moral,
temperate, liquidated or compensatory damages.
- Example: gumagawa ng mga karumal dumal na krimen katulad ng massacre bukod sa
pagbabayad sa moral damages at compensatory damages, nagdadagdag din ang korte ng
exemplary damages upang magsilbing warning ito sa publiko upang huwag tularan o pamarisan
Fraud
- Is the deliberate or intentional evasion by the debtor of the normal compliance of his obligation.
● Art. 1170 - refers to the fraud committed by the debtor at the time of the performance of the
obligation.
● Art. 1338-1344 - refers to fraud employed in obtaining consent
Kinds of Fraud:
A. Fraud in obtaining consent:
- niloko ka para makuha yung consent mo
1. Causal Fraud or Dolo Causante
- fraud of a serious kind, without which, consent would not have been given. It renders the contract
voidable for it is a defect in one of the essential elements of a contract, “consent”.
- fraud ang naging dahilan para makuha mo consent niya
- Example: gusto mo maglasing, pagpunta mo sa tindahan ubos na yung alak nila pero sa
kagustuhan niyang makabenta ang inabot niya sayo ay suka
- Ito ay panloloko at para makuha yung consent mo (agree na bumili), pinaniwala ka
niyang alak yung binebenta niya. Kung sa simula pa lang sinabi niya nang hindi ito alak,
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suka ito, kung hindi ka niya niloko, hindi niya makukuha consent mo, wala rin siyang
benta.
2. Incidental Fraud or Dolo Incidente
- This refers to fraud without which consent would have still been given but the person giving such
consent would have agreed on different terms. It would not render the contract void but the party
committing the fraud shall be liable for damages.
- Ito yung klase ng pangloloko na kahit niloko mo siya, may consent pa rin pero different terms
yung maibibigay niya
- Example: “Ate pabili ng alak” pag tingin ng tindera sa shelf may alak naman talaga. Pero nung
tinanong mo kung magkano, sabi niya “sir 10,000 yung isang bote ng alak” so nagtaka ka bakit
ang mahal, sagot niya naman “kasi po 20 years old na yung alak.” Dahil inom na inom ka na,
pumayag ka naman pero in reality 2 month old pa lang yung alak.
- May panloloko, pero kahit may panloloko makukuha pa rin sana ang consent mo. Sinabi
mong ate pabili ng alak, kung sinabi nung tindera yung totoo, matutuloy pa rin yung
transaction, bibili ka pa rin ng alak pero hindi sa halagang 10,000.
B. Fraud in the performance of the obligation

- This is the deliberate act of evading fulfillment of an obligation in a normal manner. The party
committing fraud shall be liable for damages
- after makuha yung consent mo, nung i-perform na yung obligation doon nagloko
- Example: “Ate pabili ng alak.” This time totoong alak na yung binigay sayo and siningil ka ng
tama. Walang fraud sa pagkuha ng consent mo para pumayag ka sa contract of sale. Bago umuwi,
naki-cr ka and tumikim si ateng tindera sa alak. So nabawasan, para hindi ka magalit dahil
nabawasan, tinubigan niya.
- Ang pagbebenta ng isang alak na natubigan niya ay isang panloloko. Pag napatunayan ng
buyer na tinubigan ng seller, the seller should be liable for damages.
Rules in waiver of Fraud:

● Past Fraud or fraud committed in the past can be waived. Such an act is considered as liberality
on the part of the creditor.
- naganap na yung panloloko, pwede mo patawarin or i-waive yung kaso
● Future Fraud or fraud still to be committed cannot be waived even if there is an agreement to
that effect. Such stipulation is void for being contrary to public policy.
Example:
- nanloko yung jowa mo last week (past fraud) so pag humingi ng tawad pwede mo pa patawarin
- “Tutal pinatawad mo na ako sa ginawa kong panloloko, baka pwedeng patawarin mo na ulit ako
kasi gagawin ko ulit.” Hindi mo pwedeng hingan ng waiver yung gagawin mong future fraud.
Delikadong i-allow ng batas na pwedeng i-wave ang future fraud dahil magiging prone to abuse.
Negligence
- is the omission of that diligence which is required by the nature of the obligation and corresponds
with the circumstance of the person, of the time, and of the place. It is the failure to observe the
required degree of care, precaution and vigilance that the circumstances justly demand.
- depende sa tao, oras o lugar
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- Examples:
- circumstance of the person: pagtulog (normal thing to do), pagpapabaya ang pagtulog
kung ikaw ay isang security guard habang nakaduty
- circumstance of the time: okay lang kung nasira ang mga ilaw ng jeep mo habang
namamasada ka ng umaga ngunit pumapasada ka pa rin ng gabi at sira pa rin ang
headlights mo, negligence na yon
- circumstance of the place: ang pagpapatakbo ng 80-100 kph ay normal lang kung nasa
TPLEX, pero considered as negligence kung nagpatakbo ka nang ganon kabilis sa labas
ng isang eskwelahan o simbahan.
- Diligence to be observed
- If the law or contract does not state the diligence which is to be observed in the
performance of that obligation, the debtor must observe the diligence of a good father of
a family, as required by the nature of the obligation and which corresponds with the
circumstances of the person, of the time or of the place.
Kinds of Negligence:
● Culpa Contractual: negligence in the performance of a contract. It supposes a pre-existing
contractual relationship between the parties. This is negligence in the performance of the
obligation arising from a contract resulting in damages.
○ violation of contract of carriage, pag naaksidente kayo habang nakasakay ka sa jeep
● Culpa Aquiliana (civil negligence, or tort or quasi-delict or culpa extra contractual): this is
quasi-delict where the negligence itself is the independent source of the obligation.
○ may nasagasaan na dumaraan, therefor an obligation arises to pay the damages
● Culpa Criminal (Criminal Negligence): this is negligence that results in commission of a crime.
○ naging pabaya ka dahil may masama kang intensyon, nanunog or nanira ng gamit ng iba
Kahit isa lang yung event or aksidente pwedeng magresult sa dalawang kind ng negligence, depende sa
kung sino ang nabiktima. Halimbawa, taxi driver ka tapos may nasagasaan kang dumaraan yung
obligation mo to pay for the damages arises sa negligence mo (culpa aquiliana dahil wala naman kayong
pre-existing contract) tapos nasugatan pa yung mga pasahero mo, dahil may contract na kayo which is
contract of carriage and naviolate mo yon babayaran mo siya ng damages (culpa contractual).
Delay or Default or Mora

● Delay is the non-fulfillment of an obligation with respect to time or delay in the fulfillment of an
obligation, contrary to what was agreed upon.
○ hindi natupad ang usapan niyo kung kailan dapat mangyari
● Kinds:
○ Mora Solvendi - delay on the part of the debtor
■ Ex.: usapan niyo is magbabayad ng December 31, pero lumagpas na hindi pa rin
nagbabayad yung debtor
○ Mora Accipiendi - delay on the part of the creditor. It exists when the creditor unjustly
refuses to accept the thing.
■ Ex.: ayaw pa tumanggap ng creditor ng bayad dahil gusto pa nila tumakbo yung
interest (kahit bawal din ito). Pag due date na at gusto na magbayad ng debtor,
required mong tanggapin.
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○ Compensatio Morae - delay in reciprocal obligations, both parties are in default. It is as

if there is no delay.
■ Ex.: si buyer hindi pa nakapagbayad and si seller hindi pa maibibigay yung
product
● When is there delay? (Legal delay)
○ As a rule, the debtor incurs delay from the time the creditor demands fulfillment of the
obligation (either juridically or extra-juridically) and the debtor fails to comply with such
demand. Hence, no demand, no delay.
■ Due date is December 31 and January 1 na naghihintay ka lang hindi pa siya
nagbabayad, that person is on ordinary delay
■ Legal delay: liable ka na for damages and interest. If January 5 na, tinext mo sya
and hindi pa rin siya nagbayad, that person is on legal delay. Pag mag-compute
for damages and interest, mag-start sa January 5 kung kelan ka nag-demand na
bayaran ka na niya.
● Exceptions to the no demand, no delay rule:
○ When the law or the obligation so provides
- When there is an express provision of the law or stipulation by the parties that there is no
need for a demand for the performance of the obligation
- Example 1: In paying taxes, the due date is April 15. Hindi ka na kailangan pang
paalalahanan ng gobyerno na magbayad ng buwis mo. In April 16, mag-start na agad
yung computation mo for damages and interest.
- Example 2: On December 31, bayaran mo yung utang mo na 2,000, without need of
demand. Ibig sabihin pag January 1 na, hindi ka na kailangan pang paalalahanan,
automatic magiging liable ka na for damages and interest.
● When the time is of the essence of the contract
- When the designation of the time for the performance of the obligation is the controlling
motive for the establishment of the obligation.
- Example: Nagpagawa ka ng gown for your debut at August 21. Then, at August 21 na
wala pa rin yung gown. Hindi mo na kailangan mag-demand sa tailoring shop kasi alam
naman nilang Aug. 21 yung debut mo and dapat na-deliver na nila yon.
● When demand would be useless as when the obligor has rendered it beyond his
power to perform.
- In reciprocal obligations, from the moment one of the parties fulfills his obligation, delay
by the other begins notwithstanding the absence of a demand.
- Example: yung seller na bibilhan mo ng specific na aso, binenta na pala yung aso sa iba.
So wala nang sense na mag-demand ka pa don sa seller kasi hindi niya na kayang
i-perform yung obligation niya, magstart na agad yung delay niya.
● Effects of Delay:
○ On the part of the debtor:
■ The debtor shall be liable for the payment of damages.
■ If the obligation consists in the delivery of a determinate thing, he shall be liable
even if the thing is lost due to a fortuitous event.
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- Ex. On September 1, tinawag mo yung seller na dapat madeliver na yung aso

sayo. But on September 3, tinamaan ng kidlat ang aso (kahit fortuitous event),
liable na yung seller dahil in legal delay na sya.
○ On the part of the creditor:
■ He shall bear the risk of loss and shall shoulder the expenses for the preservation
of the thing.
■ The debtor may resort to the consignation of the thing due.
- Ex. Usapan natin na Sept. 1, idedeliver ko yung aso sayo, pero ikaw yung
humihindi, pag may nangyaring masama sa aso, ikaw yung mawawalan and ikaw
yung liable sa expenses habang inaalagaan ko yung aso dahil ayaw mo pang
tanggapin.
Fortuitous Events
Article 1174
- Except in cases expressly specified by law, or which it is otherwise declared by stipulation, or
when the nature of the obligation requires the assumption of risk, no person shall be responsible
for those events which could not be foreseen (ex. lindol), or which, though foreseen, were
inevitable (ex. bagyo).
- These are events that could not be foreseen or which, though foreseen are inevitable. It is
not enough that the event should not be foreseen or anticipated, but it must be one
impossible to foresee or avoid.
Requisites of fortuitous event to be accepted as a justification for the non-performance of an

obligation to deliver a determinate thing:
● The cause must be independent of the debtor’s will
● There must be impossibility of foreseeing the event or if it can be foreseen, it must be impossible
to avoid
● The occurrence must be of such magnitude as to render it impossible for the debtor to perform his
obligation.
● The debtor must be free from participation in the non-performance, damage or loss of the
property brought about by the fortuitous event.
ex. Ikaw yung seller at natamaan yung specific na aso na iddeliver mo ng kidlat, pag lahat ito present,
hindi na liable yung seller/ debtor, wala na siyang obligation sa buyer dahil yung obligation niya
na-extinguish na because of the fortuitous event.
General Rule: If the foregoing requisites are present in a case, then the debtor shall not be liable for
non-performance of the obligation due to a fortuitous event. His obligation is extinguished.
Exceptions:
● When the debtor is in delay
● When the debtor promised the same thing to two or more persons who don't have the same
interest
● When the parties stipulate or agree that the debtor will not be exempted from liability even if
non-performance of the obligation is due to a fortuitous event
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● When the nature of the obligation requires the assumption of risk (ex. Insurance company)
● When the thing to be delivered is generic
Article 1175. Usurious transactions shall be governed by special laws

● Usury is contracting for or receiving interest in excess of the amount allowed by law for the loan
or use of money, goods, chattels or credits.
● Usury is now legally non-existent. Parties are now free to stipulate any amount of interest. This is
due to Central Bank Circular No. 905 that took effect on January 1, 1983.
● It does not, however, give absolute right to the creditor to charge the debtor interest that is
“iniquitous or unconscionable.” (wala nang limit sa interest ngayon pero wag naman yung
masyadong abusado)
Presumptions on receipts of principal and installment payments (Art. 1176)

● The receipt of the principal without reservation as to interest, shall give rise to the presumption
that the interest has been paid
- ex. Pinautang kita 1,000 ang usapan natin after one year ay 100 so ang total na utang mo sakin is
1,100. Nung bayaran na 1,000 lang yung inaabot mo. Ang tamang pag resibo ay yung 100 ay
bayad don sa interest at yung 900 ay bayad sa principal. Hindi mo pwedeng resibo na yung 1,000
lang (yung principal lang) dahil may nag-aarise na isang presumption: na dahil ini-indicate mo na
ang payment, yung 1,000 ay para sa buong payment ng principal, iniimply mo na bayad na yung
interest, which in reality hindi pa bayad interest. Logic states na una mo dapat bayaran yung
interest bago yung principal.
- Kung magresibo ka ng 1,000 na for principal lang, ilagay mong “Received 1,000 for the
payment of principal but the interest is not yet paid.” , para hindi mag-arise yung
presumption
● The receipt of a later installment without reservation as to prior installments, shall give rise to the
presumption that prior installments have been paid.
- ex. I have a boarding house, per room is 5,000 per month. Yung isang nagdorm, tatlong buwan na
hindi nakapagbayad, January-March. Then nung nakasalubong mo siya, nagbayad siya ng 5,000.
Under the law, ang pinaka tamang buwan para sa resibo ng 5,000 ay para sa buwan ng January.
Kasi kung ang nilagay mo na ang bayad niya ay para sa February or March, it gives rise to the
presumption: na dahil nagreresibo ka na para sa March, bayad na siya ng January at February.
- Kung gagawin mong for March yung bayad sa resibo idagdag mo na January and
February has not yet been paid. Para hindi mag give rise sa assumption na bayad na yung
ibang buwan.
The foregoing are mere disputable presumptions (not conclusive) and the creditor may rebut such with
clear and convincing evidence to the contrary.
Different remedies of the creditor to enforce payment of his claims against the debtor (Art. 1177):
a. Specific performance - Exact fulfillment of the obligation by specific or substitute performance
with a right to damages in either case
- if may utang sayo yung isang tao, pwede ka mag-file ng collection case at yung judge ang
mag-uutos sa debtor na magbayad ng utang niya sayo
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b. Attachment - Pursue the property in the possession of the debtor, except those exempt by law
- Hihilain ng korte ang mga ari-arian ng debtor, ibebenta para ikaw ay mabayaran
- Properties exempt by law: Family home unless ito yung nakasangla, gamit sa paghahanapbuhay,
clothing and kailangan mag-iwan ng provision for at least 3 months.
c. Accion subrogatoria - To be subrogated to all the rights and actions of the debtor save those
which are inherent in his person
- Si A may utang sayo, si B naman may utang kay A. Pwedeng utusan na lang ng korte si B na
direktang magbayad sayo, this process is called process of garnishment
d. Accion pauliana - Asking the court to rescind or to impugn all the acts which the debtor may
done to defraud the creditors
- minsan may loko-lokong debtors na, pinapasok sa sa deed of sale yung properties nila para hindi
mo ma-attach or mahila. Pwede mo i-request sa korte na i-impugn or i-cancel yung mga kontrata
na pinasok nung loko-lokong debtors sa ibang tao, para bumalik yung ownership sa debtor at
pwede mo na ma-attach.
Before using the remedy of accion pauliana, you need to exhaust the three remedies first, making it your
last resort, because in accion pauliana, there is a third party affected.
Relativity of Contracts
- A contract can only bind the parties who have entered into it or their successors who have
assumed their personality or their juridical position and that, as a consequence, such contract can
neither favor nor prejudice a third person.
- Ang pwede lang maapektuhan ng isang kontrata ay kung sino lang mismo ang pumasok doon at
yung successors nila. Ang hahabulin lang nung kontrata ay kung sino ang nakapirma.
- Hindi mo pwedeng manahin ang utang ng ibang tao. Under the relativity of contracts, hindi mo
dapat utang yon. Lumalabas lang na utang ang minana mo dahil konti na lang ang matitira sa
assets niya pagkabayad sa mga utang ng lolo mo.
- Bago makuha ng successors ang mana sa assets ng lolo nila, kailangan bayaran muna
yung utang ng lolo noong buhay pa siya. Lahat ng hindi mababayaran na liabilities ng
lolo niya, kailangan i-write off na ito ng creditors. Hindi ka dapat habulin o hindi dapat
maapektuhan yung personal assets mo para pambayad sa utang ng lolo mo.
- Yung ibang tao na binabayaran yung utang ng kamag-anak nila, it is not a civil obligation
but more of a moral obligation.
Exceptions are intransmissible rights and obligations :

● By their nature as when the special or personal qualification of the obligor constitutes one of the
principal motives for the establishment of the contract
● By stipulation of the parties, as when the contract expressly provides that the obligor shall
perform an act by himself and not through another
● By provision of law, as in the case of those arising from a contract of partnership or of agency
○ A, B and C ay partners sa isang partnership. Namatay si A, hindi pwedeng successor
yung anak niya. Hindi transmissible ang karapatan maging miyembro sa isang
partnership dahil ang isang partnership ay dapat may mutual trust at confidence.
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Module 2
Kinds of Obligations:
1. Pure Obligation - is one without a term or condition and is demandable immediately.
○ Article 1179. Every obligation whose performance does not depend upon a future or
uncertain event, or upon a past event unknown to the parties, is demandable at once.
○ Ex. Sabi ko sayo, “Bibigyan kita ng ₱20,000.” Ito ay isang pure obligation, walang
kasunod na condition, walang hinihintay na period of time na dumaan muna.
■ Kailan mo ko pwedeng hingan ng ₱20,000? IMMEDIATELY DEMANDABLE
2. Conditional Obligation - an obligation where its demadability or creation depends on the
fulfillment of a condition
Classifications of Conditions:
A condition must be both a future and uncertain event.
(If it is a future but certain event, it is not a condition but is called a period)
● Suspensive - a condition where the happening of which will give rise to the obligation, also
known as condition antecedent or condition precedent.
○ Condition na kapag nangyari na yung bagay na yon (yung condition na yon), doon pa
lang magkakaroon ng obligation yung nangako
○ Ex.: “I will give you ₱20,000 kapag pumasa ka sa paparating na CPA na Board Exam.”
Ang tawag sa condition ay suspensive condition dahil yung obligation sayo na bibigyan
ng ₱20,000 ay nakadepende pa kung matutupad mo yung condition.
○ Kailan lang ako magkaroon ng obligation na magbigay ng ₱20,000? KAPAG NAPASA
MO NA YUNG PAPARATING NA BOARD EXAM. pag hindi ka pumasa, walang
obligation na magbigay ng ₱20,000
○ Kapag nangyari o natupad yung condition, doon pa lang magkaroon ng obligation
● Resolutory - a condition where the happening of which extinguishes the obligation, also known
as condition subsequent. The obligation is demandable immediately but shall be extinguished
upon the happening of the Resolutory condition.
○ Kabaliktaran ng suspensive condition
○ Kapag natupad na yung Resolutory condition, titigil na yung obligation ko sayo
○ Ex.: “Anak, bibigyan kita ng sustento every month hangga’t hindi ka pa nakapagtatapos
ng college.” Tawag dito ay Resolutory condition dahil nakadepende na kung titigil yung
obligation ko sayo kung ikaw ay makakatapos ng college. Kung hindi man makakatapos
ng college, hindi titigil yung obligation ko na magbigay ng allowance every month.
○ Kailan mo ko pwede kulitin tungkol don sa allowance? AGAD-AGAD. (Demandable
immediately)
○ Pag nangyari na yung condition, titigil na yung obligation.
● Potestative - a condition that depends upon the will of one of the contracting parties
○ Either will ng debtor or will ng creditor
○ Article 1182. When the fulfillment of the condition depends upon the sole will of the
debtor, the conditional obligation shall be void.
■ Ex.: “Bibigyan kita ng ₱20,000 kapag gusto ko na.” Ako yung magbibigay/
debtor, ikaw yung tatanggap/creditor, pero yung condition ay nakadepende sa
will ko.
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■ This is called a Purely Potestative Condition, dahil nakadepende sa will ng

debtor, which is considered void. Void dahil possible na hindi magkatotoo ang
condition, dahil puwedeng gumawa ng paraan si debtor na hindi magkatotoo
yung condition para hindi magkaroon ng obligation. May risk na pwedeng hindi
mag-arise yung obligation dahil nakadepende sa debtor.
○ Allowed pag yung condition nakadepende sa will ng creditor
■ Ex.: “Bibigyan kita ng ₱20,000 kapag gusto mo na.” Kapag sinabi mong gusto
mo na, mag aarise na yung obligation ng debtor.
● Casual - a condition that depends upon chance or upon the will of a third person
○ Ex.: “Bibigyan kita ng ₱20,000 kapag nag-champion sa NBA ang Los Angeles Lakers.”
Nakadepende upon chance, walang assurance na sila ang magiging champion.
○ Ex.: “Bibigyan kita ng ₱20,000 kapag sinagot ka ng nililigawan mo.” Nakadepende sa
will ng nililigawan mo, kapag sinagot ka na, mag aarise na yung obligation na bigyan ka
ng ₱20,000.
● Mixed - a condition that depends partly upon the will of one of the parties and partly upon the
will of a third person.
○ Ex.: “Bibigyan kita ng ₱20,000 kapag nag-apply ka sa SGV at natanggap ka.” Dalawa
yung condition, nakadepende sayo kung mag-apply ka at nakadepende sa HR ng SGV
kung tatangapin ka.
● Possible - one that is capable of fulfillment by nature or law
○ Ex.: “Bibigyan kita ng ₱20,000 kapag natapos mong basahin yung libro ni Atty. De Leon
na Oblicon.” Possible mo makuha kapag natapos mo na, medyo mahirap pero possible.
● Impossible - one that is not capable of fulfillment in its nature, or impossible in law; the effect
would be to nullify both the condition and the obligation.
○ Imposibleng gawin o bawal sa batas
○ impossible by nature: “Bibigyan kita ng ₱20,000 kapag nakapag-dunk ka mula sa half
court line.” Walang bisa ang ganitong condition dahil parang sinabi mo na rin na hindi ka
makakapagbigay dahil hindi naman talaga kakayanin.
○ impossible by law: “Bibigyan kita ng ₱20,000 kung papatayin mo yung kaaway ko.”
Possible pero sa mata ng batas impossible o mali kaya considered na null o void.
● Positive - a condition that is supposed to happen or occur or something that must be done
○ Ex.: “Bibigyan kita ng ₱20,000 kapag nilinis mo ang kwarto mo.” Kailangan mong gawin
● Negative - a condition characterized by an event not supposed to happen or something that must
not be done.
○ Ex.”Bibigyan kita ng ₱20,000 kapag hindi ka muna lalabas ng bahay ngayong weekend.”
Something negative: hindi mo dapat gawin. Hindi ka dapat lumabas ng bahay, pag
natupad mo yung condition, mag-arise na yung obligation ko na magbigay
Article 1186. The condition shall be deemed fulfilled when the obligor voluntarily prevents its
fulfillment.
● Ex.: “Bibigyan kita ng ₱20,000 kapag sinagot ka na ng nililigawan mo na si Maria.” Ngunit di mo
alam, kinakausap ko si Maria at sinisiraan kita para hindi ako mawalan ng ₱20,000. Kapag
nalaman mo na ganoon pala nangyayari, the condition shall be deemed fulfillment. The
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debtor/obligor shall be liable na para sa ₱20,000 dahil voluntarily ako yung nag-prevent para
hindi matupad yung condition na ako rin naman ang nag-establish.
Rules in case of loss, deterioration or improvement of determinate thing before the fulfillment of a
Suspensive condition. (Art. 1189)
Ex. “Ibibigay ko sayo ang aking kotse na may plate number na ABC123 kapag nakapasa ka sa October
2021 CPA Board Exam.”
(500,000 yung worth ng kotse, 13 months pagitan from the time na nangako ako sayo to the time na
pwede mong matupad yung condition)
Article 1189. When the conditions have been imposed with the intention of suspending the efficacy of an
obligation to give, the following rules shall be observed in case of the improvement, loss or deterioration
of the thing during the pendency of the condition:
1. If the thing is lost without the fault of the debtor; the obligation shall be extinguished;
○ Ex.: “Habang hindi ka pa pumapasa, nasa akin pa rin yung kotse. Habang naka-park yung
kotse ko sa labas, tinamaan ng kidlat yung kotse at sumabog.”
○ Question: Pagdating October 2021 at pumasa ka sa board exam, may obligation pa ba ang
debtor sayo na magbigay ng kotse? WALA NA kasi yung pinangakong kotse na may
number na ABC123 (determinate thing) ay nasira nang walang kasalanan si debtor.
2. If the thing is lost through the fault of the debtor, he shall be obliged to pay damages; it is
understood that the thing is lost when it perishes, or goes out of commerce, or disappears in such
a way that its existence is unknown or it cannot be recovered;
○ Ex. “Bibigyan kita ng kotse kapag pumasa ka sa Board Exam.” Ngunit habang hinihintay
na matupad yung condition, ginagamit siya at nabangga ang kotse at nasira. Dumating
yung October 2021, at pumasa ka.
Question: Obligado pa rin ba ako sayo na magbigay ng kotse? YES, but hindi na yung
mismong kotse dahil sa negligence ni debtor. Obliged na si debtor na magpay ng
damages.
Kinds of losses:
○ Physical loss - when a thing perishes as when a house is burned.
Ex. nasira yung bahay, sumabog yung kotse
○ Legal loss - there was a time na hindi naman bawal ang marijuana, naging bawal lang
siya nung may batas nang nagsasabi na kasama siya sa prohibited drugs. Kaya nung
pinagbawal na, it goes out of commerce, bawal na ibenta sa market.
○ Civil loss - blue diamond sa Titanic ay inihagis sa dagat. Hindi siya physical loss dahil
hindi naman nasira o nadurog. Civil loss siya dahil nawala at wala nang pwedeng
makinabang because its existence is unknown or it cannot be recovered. Alam naman
nating nasa ilalim na ng dagat pero hindi na ganun kadaling i-recover.
3. When the thing deteriorates without the fault of the debtor, the impairment is to be borne by the
creditor;
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○ Kapag ang PPE (kotse) ay ginagamit over a certain period of time, mag-depreciate siya.
Habang naghihintay sa October 2021, ginagamit yung kotse. From ₱500,000 naging
₱400,000 na lang yung value ng kotse dahil nag-depreciate.
Question: Pumasa ka sa October 2021 Board Exam, may obligation pa rin ba si debtor
sayo? YES.
Required ba ako mag-abono dahil nag-depreciate yung kotse or hayaan na lang na
tig-400,000 na lang yung value nung kotse, sino ang parang ng nawalan ng ₱100,000 na
nag-depreciate? The impairment is to be borne by the creditor. Dahil wala namang
kasalanan si debtor sa pagbaba ng value ng pinangako niyang bagay, wala nang
magagawa si creditor. Hindi pwedeng mag-abono si debtor, dahil kasama ang
pag-deteriorate sa risk na matagal ma-comply yung condition.
4. If it deteriorates through the fault of the debtor, the creditor may choose between the recission of
the obligation and its fulfillment, with indemnity for damages in either case;
○ Yung kotse may mga gasgas na dahil nabangga ni debtor, may choice si creditor kung
hindi niya na kukunin yung kotse (recission/ i-cancel na yung usapan pero magbabayadsi
debtor ng damages) o kukunin niya yung kotse na may mga gasgas pero liable pa rin si
debtor for damages.
5. If the thing is improved by its nature, or by time, the improvement shall inure to the benefit of the
creditor;
○ Habang hinihintay na matupad yung condition, biglang naging in demand yung kotse
(ex.naging collector’s item). From ₱500,000 bigla naging ₱2,000,000 yung value. Walang
ginawa si creditor at debtor pero tumaas yung value in time.
Question: Sino dapat ang makinabang sa increase na ₱1,500,000? It shall inure to the
benefit of the creditor. Si creditor na ang makikinabang sa pagtaas, hindi pwedeng
magbigay ng pera si creditor kay debtor dahil sa pagtaas ng value.
6. If it is improved at the expense of the debtor, he shall have no other right than that granted to the
usufructuary.
○ Usufruct - it is the right to use a certain property. Hindi lang basta gamit, sayo pa
mapupunta yung fruits of the thing.
○ Ex.: Pinahiram mo sakin yung bahay niyo. (called commodatum/ pagpapahiram) Pero
pagpinahiram mo yung bahay mo at pwede ko pa iparenta sa iba para kumita ako ay
tawag doon ay usufruct. Pinagamit mo na yung bahay at yung fruits ay ako pa rin
makikinabang.
○ Ang tawag doon sa pinahiram mo ay usufructuary. Habang hindi ko pa binabalik yung
bahay, pwede ko i-improve katulad ng pagpipintura at pagpapalagay ng divider. Sa dulo,
kailan niyo iconsider kung mababawi niya pa yung improvements na inilagay niya.
○ Under the rule, yung mga improvements ay mapupunta na sa may-ari, the only time na
pwede kong tanggalin yung improvements ay kung yung mga idinagdag ay pwede
matagal nang hindi nasisira yung subject matter. Any improvements na dinagdag o ako
yung nagpagaw ay pwede ma off-set.
○ Yung pintura, hindi na mababawi dahil masisira yung walls.
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○ Ganon din ang karapatan ng debtor, same sa karapatan ng usufruct sa isang usufructuary.
○ Ex.: “Ibibigay ko yung kotse kong ABC123, kapag pumasa ka.” Habang hinihintay yung
condition, pinapinturahan at pinalagyan ko ng bagong seat cover. Kapag pumasa ka na sa
Board Exam (na-comply mo na yung suspensive condition), anong karapatan ni debtor sa
mga bago niyang idinagdag? Kapag may improvement na idinagdag ang isang
usufructuary, pwede niyang mauwi kung in the process of pagtanggal nito ay hindi
masisira yung subject matter. Ang pwede ko lang iuwi yung seat cover dahil pwede
naman kalasin. Ang benefit na lang ni debtor sa pagpintura sa kotse, kunyari nagasgasan
niya yung kotse habang ginagamit niya, pwedeng pang offset yon. Hindi niya na
kailangan bayaran nang buo yung damages sa pagkakagasgas, i-offset na lang sa gastos
dahil may bago namang pintura.
Article 1191. The power to rescind obligations 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 the fulfillment and the rescission of the obligation, with the
payment of damages in either case. He may also seek rescission, even after he has chosen fulfillment, if
the latter should become impossible.
● Ex. reciprocal obligations: contract of sale, buyer- obligation magbayad, seller-kailangan
magbigay ng product
● Pwedeng i-cancel yung obligations pag reciprocal, just in case yung isang party ay hindi na
makapag-comply sa kanyang ipinangako. The injured party may choose kung i-fulfill o i-cancel
yung obligation, with the payment of damages.
Article 1192. In case both parties have committed a breach of the obligation, the liability of the first
infractor shall be equitably tempered by the courts. If it cannot be determined which of the parties first
violated the contract, the same shall be deemed extinguished, and each shall bear his own damages.
● Ex.: contract of sale, yung seller na-delay sa pag-deliver. Pero nung na-deliver na, na-delay
naman si buyer sa pagbabayad. May injury silang na-cause sa isa’t isa kaya liable sila for
damages. Kung ano man ang liability ng first infractor (seller), dahil na-delay yung pag-deliver,
shall be equitably tempered by the courts. Babawasan yung magiging damages niya kay buyer
dahil si buyer din ay may pagkukulang.
● Kung hindi malaman kung sino unang nag-violate, i-ooffset na lang yung atraso niyo sa isa’t isa
and each shall bear his own damages.
Obligations with a period

An obligation with a period is one whose demandability or extinguishment depends on the arrival of a
period that is certain to come. If a condition is a future and uncertain event, a period is a future and certain
event.
● parehas na future pero sa condition, walang assurance na mangyayari ang bagay na yon. Sa period
sure na mangyayari yon or darating yon.
● Ex.: sure na darating ang December 1,2020
● Ex.: kamatayan ng isang tao
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● “Bibigyan kita ng ₱120,000 pag namatay na ang kapitbahay nyo.” obligation with a period, hindi
mo lang alam kelan ngunit mangyayari yon
● Hindi mo kailangan ma-pinpoint kung kailan mangyayari in the future, ang kailangan lang ay
sigurado na mangyayari yon.
Article 1180. When the debtor binds himself to pay when his means permit him to do so, the obligation
shall be deemed to be one with a period, subject to the provisions of article 1197.
● pag sinabi ng debtor na magbabayad siya ng kanyang utang when his means permit him to do so,
hindi ito considered a condition, but a period
● Terms for when his means permit him to do so: Little by little, as soon as possible, from time to
time, at any time I have the money
● Ex.: “I will pay you ₱5,000 when my means permit me to do so.” Babayaran kita kapag kaya ko
na
○ one with a period kasi isa siyang future and certain event
○ magkaiba yung kapag gusto ko na (purely potestative - void because it depends on the
will of the debtor) sa kapag kaya ko na (hindi pwedeng never niya kakayanin ng debtor,
hindi physically possible na mangyari na never niyang kayanin kasi ang isang tao
hanggang siya ay nabubuhay, meron siyang pag-asa na kayanin mabayaran ang utang)
Article 1193.
Obligations for whose fulfillment a day certain has been fixed, shall be demandable only when that day
comes. Obligations with a resolutory period take effect at once, but terminate upon arrival of the day
certain.
● “Babayaran ko yung utang ko ₱20,000 pagdating ng December 31,2020.” Kailangan dumating
muna yung period para magbayad ako.
A day certain is understood to be that which must necessarily come, although it may not be known when.
If the uncertainty consists in whether the day will come or not, the obligation is conditional, and it shall be
regulated by the rules of the preceding Section.
● Kamatayan ng tao (one with a period)
Kinds of Period,
● Suspensive or Ex die - a period with a suspensive effect or the obligation becomes demandable
upon the arrival of the period
○ “Babayaran ko yung utang ko ₱20,000 pagdating ng December 31,2020.” Kailan lang
ako magkakaroon ng obligation magbigay ng ₱20,000? Pagdumating na ang December
31,2020
○ Pag dumating na yung period, magkakaroon ng obligation
● Resolutory or In diem - a period with a resolutory effect. Here the obligation is demandable
upon perfection but is extinguished upon the lapse of the period.
○ “Bibigyan kita ng allowance buwan-buwan hanggang ikaw ay mag 18 years old.” Pag
naging 18 years old ka na, doon na titigil ang obligation sayo na magbigay ng allowance
sayo.
○ Pag dumating na yung period, mawawala o titigil yung obligation
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Article 1194. In case of loss, deterioration or improvement of the thing before the arrival of the day
certain, the rules in article 1189 shall be observed.
● Habang hinihintay na dumating yung period, maraming pwedeng mangyari doon sa ipinangakong
subject matter. (Same rules sa condition)
Article 1195. Anything paid or delivered before the arrival of the period, the obligor being unaware of the
period or believing that the obligation has become due and demandable, may be recovered, with the fruits
and interests.
● Pag akala nung nagbabayad na dapat na siyang magbayad, pero hindi pa pala - Concept of solutio
indebiti, pwede mo pang mabawi yung ibinayad mo including fruits and interests.
● Pag napaaga ng bayad pero due date na ng obligation, hindi mo na pwedeng mabawi yung
principal mo pero yung fruits and interest pwede pang mabawi.
Article 1196. Whenever in an obligation, a period is designated, it is presumed to have been established
for the benefit of both the creditor and the debtor, unless from the tenor of the same or other
circumstances it should appear that the period has been established in favor of one or of the other.
● Pag nagset ng period yung creditor and debtor, pag generic ang pagkakasabi ng period, it is
presumed to have been established for the benefit of both the creditor and the debtor
● Ex.: pag pinautang mo ako ng ₱20,000 “The ₱20,000 is to be paid on December 31,2020”
liability is payable on Dec. 31,2020
○ Yung date na Dec 31,2020 ay na-establish para sa benefit nating dalawa
○ Ako yung umutang sayo, hindi mo ako pwedeng pilitin na magbayad nang mas maaga sa
December 31,2020. Hindi rin kita pwedeng pilitin na tanggapin yung bayad ko nang mas
maaga.
○ Question: Pwede ba natin pilitin ang isa’t isa (creditor & debtor) na gawin ang mga dapat
natin obligation kahit hindi pa dumarating yung usapang period? NO, dahil nung sinet-up
yung December 31,2020, the presumption is that gagamitin ko (ako na umutang) yung
pera hanggang December 31,2020. Kaya ikaw na nagpautang sakin, hindi mo pwedeng
pilitin nang mas maaga na magbayad ako.
● unless from the tenor of the same or other circumstances it should appear that the period has been
established in favor of one or of the other
○ Ex. “Uutang ako sayo ng ₱20,000 payable on or before December 31,2020” - Pag ganito
yung wordings, ang presumption is that the period has been established in favor of the
debtor.
■ Pag payable on or before, ang presumption ay ikaw na umuutang, pwede akong
magbayad ng Dec. 31,2020 sasagarin ko, pero ikaw pwede kitang pilitin na
tumanggap ng bayad nang mas maaga kasi ang sasabihin ko covered iyon ng “on
or before”
■ Hindi pwede silingin ng creditor na magbayad nang mas maaga, unless gusto rin
ng debtor. Pag siningil mo ako nang mas maaga at ayaw ko, ang sasabihin ko
sayong option ay yung magbabayad ako ON December 31,2020.
○ Ex.: “collectible on or before December 31,2020” - the period was established for the
benefit of the creditor
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■ Pwedeng sagarin ng creditor on December 31,2020 para ma-maximize yung kita

niya. Pero hindi mo siyang pwedeng awayin pag nangolekta siya before
December 31 dahil sa “before Dec.31” kaya ang presumption is the period has
been established in favor of the creditor
Instances when the court may fix a period

1. If the obligation does not fix a period but from its nature and circumstances, it can be inferred but
a period was intended.
2. When the duration of the period depends upon the will of the debtor.
○ Obligation na babayaran when my means permit me to do so (kapag kaya na ng debtor)
○ May period talaga sadyang hindi lang talaga alam kung kailan yung kaya niya na, ang
korte na ang nag-ddecide kung kaya na ba talaga ni debtor, korte na yung mag-set ng
period.
Article 1198. The debtor shall lose every right to make use of the period:
1. When after the obligation has been contracted, he becomes insolvent, unless he gives a guaranty
or security for the debt;
○ Pag nabalitaan mo na yung debtor ay naging insolvent - personal liability niya ay mas
marami na sa kanyang assets, nawawala yung binibigay mo sakin na period. Hindi ko na
pwedeng i-stretch out yung aking utang hanggang Dec. 31,2020, bigla-bigla yung
liability ko sayo magiging due and demandable immediately. (Desisyon ng batas para sa
protection ng creditor) kung hihintayin pa ang Dec. 31,2020 baka wala nang natira sa
assets ng debtor.
○ Unless the debtor gives a guaranty or security for the debt: additional collateral that
would give him the benefit to make use of the given period
2. When he does not furnish to the creditor the guaranties or securities which he has promised;
○ Uutang ka babayaran mo Dec. 31,2020 sasangla mo raw yung lupa o kotse mo, pero hindi
mo naman iniwan. Hindi ka tumutupad sa ipinangako mo, wala na yung period na
binigay sayo, magiging due and demandable agad yung utang.
3. When by his own acts he has impaired said guaranties or securities after their establishment, and
when through a fortuitous event they disappear, unless he immediately gives new ones equally
satisfactory;
○ Nangako si debtor na isasangla kotse tapos porket nakasangla na yung kotse hindi na niya
inaalagaan. Pag nalaman ito ng creditor, pwede niyang gamitin na valid reason ito para
baliwalain niya na yung period and kolektahin yung utang.
4. When the debtor violates any undertaking, in consideration of which the creditor agreed to the
period;
○ Pauutangin kita ng ₱20,000 babayaran ng Dec. 31,2020 as long as hindi ka pupunta ng
casino para ipangsugal yung pera. Ngunit biglang napabalita na nagsusugal ka na sa
casino, yung creditor hindi niya na hihintayin yung period, kokolektahin niya na yung
perang inutang mo dahil baka mas lalong hindi siya makasingil.
5. When the debtor attempts to abscond.
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○ Abscond - pagtakas (pupunta ng ibang lugar para hindi na masingil) magiging due and
demandable na agad yung utang mo dahil nag-try ka nang takbuhin yung utang mo.
Kinds of Obligation according to object:

● Simple obligation - where one prestation is due
● Compound obligation - where two or more prestations are due
○ Conjunctive - don sa maraming kailangan ibigay, kailangan mo ibigay lahat (all of them
are due)
○ Distributive - one where two or more of the prestations is due, hindi lahat kailangan
mong ibigay
■ Alternative obligations - one where several prestations are due but the
performance of one of them is sufficient
■ Facultative obligations - one where one prestation is due but the debtor can
render another as substitute.
Alternative Obligations
- It is one wherein various prestations are due but the performance of one of them is sufficient.
Article 1199. A person alternatively bound by different prestations shall completely perform one of them.
The creditor cannot be compelled to receive part of one and part of the other undertaking.
- isa lang sa mga pinangako mo ang kailangan mong ibigay
Article 1200. The right of choice belongs to the debtor, unless it has been expressly granted to the
creditor. The debtor shall have no right to choose those prestations which are impossible, unlawful or
which could not have been the object of obligation.
- sino ang dapat mamili kung anong bagay ang dapat na maibigay kay creditor? The right of choice
belongs to the debtor, kung sino ang nangakong magbigay, siya ang may right of choice, siya ang
dapat mamili. Unless napag-usapan nila na yung tatanggap (creditor) ang siyang mamimili kung
ano ang dapat matanggap niya.
- The debtor shall have no right to choose those prestations which are impossible, unlawful or
which could not have been the object of obligation.
- Ex. Bibigyan kita ng shabu or marijuana or chocolate. Pag ganon ang mga ipinangako
sayo bilang debtor, hindi pwedeng pillin ko ang shabu o marijuana dahil unlawful iyon.
Article 1201. The choice shall produce no effect except from the time it has been communicated.
- Bago sabihin ni debtor kay creditor na itong bagay na ito ang napipili niyang ibigay, yung
obligation ay isa pang alternative obligation kasi may choice pa si debtor, may pwede pa siyang
pagpilian. Ngunit, at the moment na sabihin ni debtor, ang bibigay ko sayo ay object A (nakapili
na). Hindi na ito isang alternative obligation, ito ay isang simple obligation na (isa na lang ang
bibigay mo).
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Article 1202. The debtor shall lose the right of choice when among the prestations whereby he is
alternatively bound, only one is practicable.
- debtor shall lose the right of choice kapag may nangyari sa mga ipinapangako niya such as
namatay, nasira at yung isa na lang ang practicable.
- It will cease to be an alternative obligation, magiging simple obligation na lang sya.
Article 1203. If through the creditor’s acts the debtor cannot make a choice, according to the terms of the
obligation, the latter may rescind the contract with damages.
- dahil sa mga kagagawan ni creditor, hindi na makapili si debtor, pwedeng i-cancel na lang ni
debtor yung kanilang contract
Article 1204. The creditor shall have a right to indemnity for damages when, through the fault of the
debtor, all the things which are alternatively the object of the obligation have been lost, or the compliance
of the obligation has become impossible.
- may karapatan makatanggap si creditor ng damages kung sa kapabayaan ni debtor yung mga
bagay na dapat sana ay maibibigay sa kanya ay hindi na mangyayari dahil naubos na o nawala
dahil sa kasalanan ni debtor.
- Pag wala nang maibigay kay creditor, magiging liable si debtor for damages
The indemnity shall be fixed taking as a basis the value of the last thing which disappeared, of that of the
service which last became impossible. Damages other than the value of the last thing or service may also
be rendered.
- when the choice of the object belongs to the debtor at naubos yung mga bagay dahil sa
pagpapabaya ni debtor, ang halaga na dapat ibigay kay creditor is the value of the last thing which
disappeared, of that of the service which last became impossible. Maliban sa halaga nung huling
bagay na nawala, damages can also be awarded.
Article 1205. When the choice has been expressly given to the creditor, the obligation shall cease to be
alternative from the day when the selection has been communicated to the debtor.
- kapag creditor ang mamimili, hindi na alternative obligation from the moment na sabihin ni
creditor yung choice niya kay debtor. Nagiging simple obligation pagtapos sabihin yung choice.
Until then the responsibility of the debtor shall be governed by the following rules:
1. If one of the things is lost through a fortuitous event, he shall perform the obligation by delivering
that which the creditor should choose from among the remainder, or that which remains if only
one subsists;
2. If the loss of one of the things occur through the fault of the debtor, the creditor may claim, any of
those subsisting, or the price of that which through the fault of the former, has disappeared, with a
right to damages;
○ Dahil sa kasalanan ni debtor may isang nawala sa mga choices, si creditor pwedeng
mamili sa kung ano ang mga natira o kaya piliin ni creditor yung halaga ng nawala with a
right to damages.
3. If all the things are lost through the fault of the debtor, the choice by the creditor shall fall upon
the price of any one of them, also with indemnity for damages.
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○ Pag lahat ng mga bagay na ipinangakong ibigay ay nawala dahil sa kasalanan ni debtor, si
creditor ay pwedeng mamili ng kahit na ano sa halaga nung mga nawala at pwedeng
manghingi ng damages.
The same rules shall be applied to obligations to do or not to do in case one, some or all of the prestations
should become possible.
Choice belongs to the debtor

“I promise to give you a specific dog (P 5,000) or a specific cow (P 10,000) or a specific cat (P 2,000).”
- hindi pa nakakapili si debtor kung ano yung ibibigay niya (alternative obligation pa rin)
- specific thing kasi kung generic pag namatay pwede mo pang palitan ng kapareho
1. Dog (FE) >> Cow (FE) >> Cat (FE)

● Namatay yung specific na aso dahil sa fortuitous event, may obligation pa rin si debtor na
magbigay ng isang specific na hayop kay creditor?
○ YES kasi kahit patay na yung specific dog, pwede pa rin siya makapagcomply sa
kanyang pangako dahil nandon pa naman yung cow and cat
● Bago pa ulit makapili si debtor ng choice niya, namatay naman dahil sa fortuitous event yung
cow, meron pa bang obligation si debtor kay creditor
○ YES kasi sa tatlong ipinangako niya, may isa pang natitira.
● Dahil sa pagkamatay nung dalawang choices, ang effect nito ay yung dating alternative obligation
ay naging isang simple obligation na lamang dahil cat na lang ang natitira.
● Bago ma-deliver yung cat kay creditor, namatay din sa fortuitous event. May obligation pa ba si
debtor na magbigay ng isang specific na hayop kay creditor?
○ NONE dahil ang ikinamatay nung pinakahuling object na pwede niyang ibigay ay isang
fortuitous event. Pag simple obligation na at yung bagay na ipinangako mo ay namatay o
nawala dahil sa isang fortuitous event that obligation is extinguished.
2. Dog (N) >> Cow (N) >> Cat (N)
● Hindi pa nakakapili si debtor, pinabayaan (negligence) ni debtor yung aso at namatay. May
obligation pa rin si debtor na magbigay ng isang specific na hayop kay creditor?
○ YES, dahil kaya pa rin niya magbigay ng isang hayop, mayroon pang dalawang choices.
Walang problema kahit namatay yung dog dahil sa negligence, dahil may iba pa siyang
pinangako.
● Sa isang alternative obligation at namatay yung specific thing dahil sa negligence, magiging
liable ba si debtor for damages?
○ NO, the debtor is not liable for damages. Dahil ang pangako lang ni debtor ay bibigyan
ng specific dog, specific cow or specific cat. Kahit pabayaan ni debtor yung aso, hindi
pwedeng mag file for damages si creditor dahil lang nag-eexpect ka na aso yung ibibigay
sayo dahil the choice belongs to the debtor.
● Bago ma-communicate yung choice, namatay naman yung cow dahil sa negligence. May
obligation pa rin si debtor na magbigay ng isang hayop kay creditor?
○ YES,kaya niya pa makapag-comply sa pangako niya dahil buhay pa naman yung specific
na pusa.
● Dalawang hayop na yung namatay dahil sa negligence ni debtor, liable na ba siya for damages?
○ NO, the debtor is not liable for damages. The choice belongs to the debtor.
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● Bago ma-deliver yung pusa, napabayaan ulit ni debtor at namatay. Makakapag-comply pa ba si

debtor?
○ NO, wala nang natira sa pangako niyang hayop.
● Liable na ba si debtor sa damages?
○ YES, dahil hindi na makakapag-comply si debtor
○ Magkano ang lumalabas na utang ni debtor?
■ Halaga nung huling bagay na nawala. The value of the cat which is P 2,000 plus
damages.
3. Dog (FE) >> Cow (FE) >> Cat (N)
● Namatay yung specific na aso dahil sa fortuitous event, may obligation pa rin si debtor na
magbigay ng isang specific na hayop kay creditor?
○ YES
● Namatay ulit dahil sa fortuitous event yung cow, meron pa bang obligation si debtor kay creditor?
○ YES kasi sa tatlong ipinangako niya, may tatlo pang natitira.
● Namatay naman yung pusa dahil sa kapabayaan ni debtor.
○ Debtor ay magiging liable para sa halaga ng pinakahuling bagay na nawala plus damages.
4. Dog (N) >> Cow (N) >> Cat (FE)
● Hindi mahalaga kung ano ang ikinamatay nung una at pangalawa, dahil kung ano man mangyari
don, may natitira pang isa. Ang titignan mo ay yung ikinamatay ng pangatlo. Kung ang
ikinamatay niya ay dahil sa negligence, ang magiging liability ng debtor ay yung value of the last
thing that was lost plus damages.
● Pagkatapos mamatay nung dalawa dahil sa negligence, yung specific cat namatay dahil sa
fortuitous event. May liability pa ba si debtor kay creditor?
○ NONE, pag ang isang specific thing ay nawala dahil sa fortuitous event, the obligation
will be extinguished.
Creditor belongs to the creditor

“I promise to give you a specific dog (P 5,000) or a specific cow (P 10,000) or a specific cat (P 2,000).”
1. Dog (FE) >> Cow (FE) >> Cat (FE)
● Bago makapili si creditor, namatay yung aso dahil sa fortuitous event. May effect ba to sa liability
ni debtor na magbigay ng isang specific na hayop kay creditor?
○ NONE, may specific cow and specific cat pa.
○ Liable ba si debtor for damages?
■ NO, dahil fortuitous event ang dahilan.
● Namatay ulit yung cow dahil sa fortuitous event, ano effect nito sa liability ni debtor?
○ NONE, may specific cat pa.
○ Liable ba si debtor for damages?
■ NO, dahil fortuitous event ang ikinamatay.
● Namatay yung pusa naman dahil sa fortuitous event, anong effect nito sa obligation ni debtor kay
creditor?
○ The obligation will be extinguished.
2. Dog (N) >> Cow (N) >> Cat (N)
● Bago makapili si creditor, napabayaan yung aso ni debtor at namatay. May obligation pa rin ba si
debtor kay creditor?
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○ YES
● Kung ang ikinamatay o ikinasira nung unang bagay ay negligence, ano ang natitirang options ni
creditor na pwede niyang pagpilian?
○ Select the cow or select the cat or select the value of the dog plus damages. (Article 1205)
● Bago ulit makapili si creditor, napabayaan yung cow at namatay. Ano options ni creditor?
○ Select the cat or the value of the dog or the value of the cow plus damages in either case.
● Pag lahat namatay dahil sa kapabayaan ni debtor, creditor can choose the value of the any of the
three things that were lost plus damages.
Facultative Obligation
Article 1206. When only one prestation has been agreed upon, but the obligor may render another in
substitution, the obligation is called facultative .
The loss or deterioration of the thing intended as a substitute, through the negligence of the obligor, does
not render him liable. But once the substitution has been made, the obligor is liable for the loss of the
substitute on account of his delay, negligence or fraud.
“I promise to give you a laptop, but I may give you a cellphone as a substitute.”
- si debtor ang mag-decide kung laptop o cellphone ang ibibigay niya
- Hangga’t walang nagaganap na substitution, hanggang hindi pa sinasabi ni debtor na i-substitute
niya na ang cellphone sa laptop, huwag papansinin yung substitute.
● Kung tinamaan ng kidlat yung laptop (fortuitous event), the obligation is extinguished.
○ Pag ang ikinasira ng ipinangakong bagay ay fortuitous event, the obligation is
extinguished.
○ Sa isang facultative obligation, hanggang walang substitution walang pakialam sa
substitute.
○ Pagnasira yung laptop, ibibigay na lang yung cellphone. Kung ganto yung obligation, it is
an alternative obligation. (I promise to give you a laptop or a cellphone.)
○ Sa facultative, ipapalit niya yung cellphone dahil ayaw niya na ibigay yung laptop, hindi
dahil nasira na yung laptop.
● Kapag nasira yung laptop dahil sa negligence, the debtor is liable for damages with the value of
the laptop.
● Nung hindi pa nabibigay yung laptop, nasira yung substitute. May effect ba ang pagkakasira ng
substitute sa obligation to give a laptop?
○ NO EFFECT.
● But bago may mangyari, sinabi ni debtor, “Ayoko na pala ibigay yung laptop, cellphone na lang.”
Bago maibigay yung cellphone nasira dahil sa fortuitous event. Ano effect non sa obligation ni
debtor?
○ The obligation is extinguished. The principal object now is the cellphone.
● If nasira yung cellphone dahil sa negligence, the debtor is liable for damages. (Once mag switch,
wala nang pake sa prior principal object.)
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Joint and Solidary Obligation

A joint or solidary obligation is characterized by a concurrence of two or more debtors and/or two or
more creditors in one and the same obligation.
● Collective obligation - wherein there are two or more debtors and two or more creditors
○ Maaaring may isang umuutang at dalawang taong magkasama yung inuutangan
○ Maari din na may dalawang sabay na uutang sa isang tao
● Nakadepende sa kanilang agreement kung magkano ang pwedeng kolektahin ng isang creditor at
kung magkano ang pwedeng utangin ng isang debtor
Joint Obligation
This is an obligation where each debtor is liable only for a proportionate portion of the debt and each
creditor is entitled only to a proportionate part of the credit; debt shall be divided into as many debtors
and creditors. Other terms for joint obligation are proportionately, pro rata, mancomunada or
mancomunada simple.
Solidary Obligation
This is an obligation where each is liable for the whole obligation and each creditor is entitled to demand
payment of the entire obligation. Other terms are jointly and severally, individually and collectively, in
solidum, mancomunada solidaria and juntos o separadamente.
- Pag kayo ay mga solidary debtor, kayo ay liable sa buong utang niyo
- Pag kayo naman ay solidary creditor, maari niyong kolektahin yung buong pautang niyo.
Kinds of Solidary Obligation:

1. Passive Solidarity - this is solidarity on the part of the debtors
2. Active Solidarity - Solidarity on the part of the creditors
3. Mixed Solidarity - on the part of both the debtors and creditor
Article 1207. The concurrence of two or more creditors or of two or more debtors in one and the same
obligation does not imply that each of the former has a right to demand, or that each one of the latter is
bound to render, entire compliance with the prestation. There is a solidary liability only when the
obligation expressly so states, or when the law or the nature of the obligation requires solidarity.
- if the problem is silent, kung hindi napag usapan ng mga parties kung joint or solidary ang
relationship ng isa’t isa, the relationship of the debtor and creditor is joint. Kasi pag solidary need
mag-impose ng mas mabigat na obligation.
Article 1208. If from the law, or the nature or the wording of the obligations to which the preceding
article refers the contrary does not appear, the credit or debt shall be presumed to be divided into as many
shares as there are creditors or debtors, the credits or debts being considered distinct from one another,
subject to the Rules of the Court governing the multiplicity of suits.
- ang isang utang ay pinaghahati-hatian ng mga creditor or debtors, the relationship is joint
Illustrative Examples:
If the problem is silent, the presumption is that their share in the loan is equal.
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1. Mr. X borrowed P 10,000 from Mr. A and Mr. B, joint creditors

● Kung ang relationship ni A and B ay joint creditors, pag nakasalubong ni A si X on the due date,
magkano ang pwedeng kolektahin ni A kay X?
○ P 5,000
● Pano kung si B naman ang nakasalubong ni X on the due date, magkano ang pwedeng kolektahin
ni B kay X?
○ P 5,000 dahil sila ay joint creditors
2. Mr. X borrowed P 10,000 from Mr. A and Mr. B, solidary creditors.
● Pag si Mr. A na isang solidary creditor at nakasalubong niya si Mr. X? Magkano ang pwedeng
kolektahin ni A kay X?
○ Pwede siyang makakolekta nung buong P 10,000. Hindi pwedeng tumanggi si Mr. X
dahil kaya ni Mr. A kolektahin yung buo bilang isang solidary creditor, siya ay nag-aact
bilang representative nilang dalawa. (Taken as one si A and B) Ngunit hindi pwedeng
solohin ni Mr. A yung bayad dahil equal sila ni B sa pinautang. Bilang isang solidary
creditor, may kaparatan kang makakolekta ng buo yung pautang pero obligation mong
ibigay yung kalahati kay Mr. B.
3. Mr. X and Mr. Y, joint debtors, borrowed P 30,000 from Mr. A.
● Magkano ang pwedeng kolektahin ni Mr. A kay Mr. X?
○ P 15,000. Hindi obligado ang isang debtor na bayaran yung share ng kasama niya.
4. Mr. X and Mr. Y, solidary debtors, borrowed P 30,000 from Mr. A.
● Magkano ang pwedeng kolektahin ni Mr. A kay Mr. X?
○ P 30,000 dahil ang relationship ni X and Y ay solidary. But he is subjected to
reimbursement kay Y, kailangan magbayad ng 15,000 kay X dahil ang nangyari ay
nag-abono si X ng share ni Y sa utang.
1. X, Y, and Z (solidary debtors) borrowed P12,000 from A & B (solidary creditors).

2. X, Y, and Z (joint debtors) borrowed P12,000 from A & B (solidary creditors).
3. X, Y, and Z (solidary debtors) borrowed P12,000 from A & B (joint creditors).
4. X, Y, and Z (joint debtors) borrowed P12,000 from A & B (joint creditors).
A & B creditors X & Y Debtors
Magkano ang pwedeng masingil ni A sa mga Magkano ang required bayaran ni X don sa
debtors? maniningil sa kanya?
1. S - 12,000 (buong amount) S - 12,000
2. S - 12,000 J - 4,000
● Kung 4,000 ang nakolekta ni A kay X, required ba siyang mag remit/ mag share ng nakolekta
niya kay B, kahit na kulang pa talaga yon sa share nilang tig 6,000?
○ YES, required siyang i-remit yung kalahati ng 4,000 kay B. Tig-2,000 lang silang
doon. Kapag solidary creditor, nangongolekta ka in behalf of the whole group
(creditors). Kung 4,000 lang ang natanggap mo kailangan mong hatiin sa B dahil
solidary creditor ang relationship niyong dalawa.
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● Si X naman na nagbayad ng 4,000, required ba siyang manghingi ng reimbursement sa kapwa

debtor niya?
○ NO, yung 4,000 na binayaran ni X ay yung share niya talaga sa inutang nila. Hindi
niya kailangan manghingi ng reimbursement dahil yung binayaran niya ay yung share
niya pero pagkatapos non ay hindi na siya masisingil ulit.
3. J - 6,000 S - 6,000
● yung buong 6,000 na share ni A ay pwede niyang makolekta kay X.

● After makakolekta si A kay X, required bang magshare si A ng kalahati kay B.
○ NO, no need magremit ng 3,000 si A kay B dahil yung 6,000 na nakolekta kay X ay
yung share talaga ni A sa pinautang nila.
● Sa 6,000 na binayaran ni X, magkano ang pwede niyang ipareimburse kay Y and Z?
○ Tig 2,000 pesos si Y and Z. Dahil solidary sila ang share lang talaga ni X sa binayaran
niyang 6,000 ay 2,000 lang. At pag nakasalubong niya naman si Mr. B, required na
naman siyang magbayad ng 6,000 at pagkatapos ay manghingi ulit ng reimbursement
kay Y and Z na tig 2,000 pesos.
4. J - 6,000 J - 2,000
● Yung 6,000 kaya niyang makolekta pag nakasalubong niya silang lahat pero kung si X lang,
2,000 lang. Hindi rin kailangan i-share ni A kay B yung nakolekta niyang 2,000 kay X dahil
joint relationship ang creditor, bawat halaga na nakokolekta niya ay para sa sarili niya lang.
● Wala rin karapatan si X na manghingi ng reimbursement kay Y and Z. At pag nakasalubong
niya si B, required na naman siya magbayad ng 2,000.
Ang share pa rin ni A and B sa pinautang ay tig- 6,000. While ang share ni X, Y and Z sa inutang ay tig-
4,000. Pero nakadepende sa relationship nila sa isa’t isa ang kayang kolektahin ng mga creditor at ang
required bayaran ng mga debtor.
Article 1209. If the division is impossible, the right of the creditors may be prejudiced only by their
collective acts, and the debt can be enforced only by proceeding against all the debtors. If one of the latter
should be insolvent, the others shall not be liable for his share.
● Joint indivisible obligation: ex. Si Mr. A, B and C ay nangako na mag-deliver ng specific dog
worth P6,000 kay Mr. X
○ The debt can be enforced only by proceeding against all the debtors. (Kung divisible kasi
pwede namang pumunta na lang si X sa isa-isang creditor)
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○ Para makapagdemand na ma-perform ang isang joint indivisible obligation, pupunta si X

habang magkakasama si A,B and C, kasi hindi naman niya pwedeng hingin na isa isa.
● What if on the day of delivery, si Mr. C biglang ayaw niya na ibigay yung specific na aso. Ano
ang magiging effect ng pag back-out ni C sa pagdeliver ng specific obligation nila?
○ Their obligation to deliver a specific object will be transformed into a MONETARY
OBLIGATION.
○ Ang utang nila ay tig-2,000.
○ But si Mr. C ay liable din for damages. (2,000 plus damages)
● If one of the latter should be insolvent, the others shall not be liable for his share.
○ Kapag si A ay insolvent niya (naubos na yung assets niya)
○ Dahil ba wala nang kakayahan si A na bayaran yung 2,000 na share niya kay X, may
karapatan ba si X na habulin si B or C para sa share ni A?
■ Walang obligation si B or C para sa part ng utang na hindi na kayang bayaran ng
kasama nilang insolvent na debtor.
■ Hihintayin na lang ni X na maging maayos yung buhay ni A upang mabayaran
siya.
Article 1210. The indivisibility of an obligation does not necessarily give rise to solidarity. Nor does
solidarity of itself may imply indivisibility.
- Ang pinag uusapan sa Joint and Solidary ay yung extent ng liability ng isang debtor and extent ng
karapatan ng isang creditor.
- Kung hanggang magkano ang kaya mo kolektahin sa isang debtor, (Pwede mo ba kolektahin yung
buo sa kanya? Oo kung solidary. Ang pwede mo lang kolektahin sa kanya ay yung share niya
kapag joint.) Samantalang, pwede kang makakolekta ng buong amount kapag solidary and kapag
joint naman ay yung proportionate sayo.
- Ang tinutukoy naman sa Divisible and Indivisible ay yung nature ng object, obligation or
prestation.
- Maling isipin na kapag obligation ay indivisible ang obligation ay solidary or vice versa.
Article 1211. Solidarity may exist although the creditors and the debtors may not be bound in the same
manner and by the same periods and conditions.
- Pwedeng si A, B and C ay may iba´t ibang period or condition. Ang date ng share ni A ay next
week, si B ay next month, at si C ay next year. However, if the problem is silent sabay-sabay ang
due date ng kanilang utang.
Article 1212. Each one of the solidary creditors may do whatever may be useful to others, but not
anything which may be prejudicial to the latter.
- Ex. Si A and B ay umutang kay X, Y and Z (solidary creditors.) Ang bawat isa kela X,Y, and Z ay
pwedeng gumawa ng mga bagay na useful sa kanyang mga kasama. Si Mr. X ay pwedeng
gumawa ng mga bagay na makakatulong sa kanyang mga kasama. (The right to demand payment
from A and B para hindi mag-prescribe yung utang sa inyo)
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- Hindi ka pwedeng gumawa ng bagay na makakasama (prejudicial) sa kapwa creditors mo

(remission/ condonation or pagpapatawad ng utang) Pag pinatawad mo yung utang, you will now
be liable para sa share ni Y and Z.
Article 1213. A solidary creditor cannot assign his rights without the consent of the others.
- si A and B ay 6,000 kay X, Y and Z. (solidary creditor.) Hindi pwedeng ilipat ni X yung
karapatan niya to other people without the consent of the other creditors. ——- bounded by the
issue of trust and confidence (pag solidary kasi yung relationship matindi yung tiwala niyo sa
isa´t isa kasi in-authorize mo yung mga kapwa creditors na makakolekta para sa inyong lahat)
- Kung kailangan na talaga ni X ng pera, pwede niyang i-assign kay Y yung share niya. Si Y na ang
magbibigay ng pera kay X and magiging 4,000 na yung share ni Y. (If ganto yung scenario, hindi
na kailangan kunin ni X yung consent ni Z)
Article 1214. The debtor may pay any one of the solidary creditors; but if any demand, judicial or
extrajudicial, has been made by one of them, payment should be made to him.
- Kung sino unang nag-demand na creditor, yon na lang bayaran.
Article 1215. Novation, compensation, confusion or remission of the debt, made by any of the solidary
creditors or with any of the solidary debtors, shall extinguish the obligation, without prejudice to the
provisions of article 1219.
The creditor who may have executed any of these acts, as well as he who collects the debt, shall be liable
to the others for the share in the obligation corresponding to them.
- required yung creditor na nag-execute ng remission ng debt na magremit don sa kapwa solidary
creditor niya ng kanilang share.
Article 1216. The creditor may proceed against any one of the solidary debtors or some or all of them
simultaneously. The demand made against one of them shall not be an obstacle to those which may
subsequently be directed against the others, so long as the debt has not been fully collected.
- A, B, C (solidary debtors) ay umutang ng P30,000 kay X
- Alam ni X na ang relationship ng mga debtors ay solidary. Yung 30,000 ay pwede niyang
makolekta against any one of them. May karapatan syang maningil ng buong 30,000 kay A or he
can proceed to A mag-collect lang ng 15,000 at puntahan si B upang mangolekta ng 15,000 pa or
he can proceed to all of them nang sabay sabay.
- Hindi porket solidary ang relationship ng debtors ay required na laging bayaran ng isa yung
buong utang nila pag siningil siya ng creditor. May right si X na kolektahin yung buong amount
but may option siya na kolektahin lang kung ano ang kaya ni A.
Article 1217. Payment made by one of the solidary debtors extinguishes the obligation. If two or more
solidary debtors offer to pay, the creditor may choose which offer to accept.
He who made the payment may claim from his co-debtors only the share which corresponds to each, with
the interest for the payment already made. If the payment is made before the debt is dus, no interest for
the intervening period may be demanded.
When one of the solidary debtors cannot, because of his insolvency, reimburse his share to the debtor
paying the obligation, such share shall be borne by all his co-debtors, in proportion to the debt of each.
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- Nangutang si A and B (solidary debtors) ng 6,000 kay X. Due date ng utang is Sept. 1. Kung Sept
1 nagbayad si A ng 6,000, pwede siyang makakolekta ng 3,000 kay B which is yung share ni B sa
utang. There is a possibility na matatagalan makabayad si B kay A.
- Ex. Nakapagbayad si B kay A ng Oct. 1, magkano ang dapat bayaran ni B kay A? Yung
3,000 na inabono ni A para sa kanya at isang buwan na interest.
- But if the payment is made before the due, no interest may be demanded.
- Binayaran na agad ni A si X ng 6,000 noong August 1, but ang due date is Sept 1 pa.
Magkano ang pwedeng kolektahin ni A kay B na interest? Aug 1- Sept 1 is called the
intervening period, therefore walang obligation si B na magbayad ng interest.
- Kapag si A ay nagbayad ng 6,000 kay X, may karapatan siyang humingi ng reimbursement ni B.
However, nung nanghihingi nang reimbursement si A, insolvent pala si B. Ano ang effect?
- Dahil hindi na makapagbayad si B, abonodo si A sa share ni B. Wala nang pakialam si X,
sa pagiging insolvent ni B at kung hindi makakolekta si A kay B.
- Ex. Kung tatlo silang solidary debtors (A, B, C) at insolvent si B. Hati dapat si A and C
sa share ni B, pansamantala. Because of the insolvency of B, magkano pa ang pwede
niyang habulin kay C? 1,000 (hati si A and C sa share ni B na 2,000)
Article 1218. Payment by a solidary debtor shall not entitle him to reimbursement from his co-debtors if
such payment is made after the obligation has been prescribed or become illegal.
- Hindi alam ni A na prescribe na pala yung utang (naging natural obligation na), nagbayad pa siya
ng 6,000 kay X. Ang payment ng isang solidary debtor pag nag prescribe na yung utang, shall not
be prejudicial kay B. Walang karapatan na manghingi ng 3,000 si A kay B. Dahil benefit na ni B
na nagprescribe na yung utang at nagbayad pa rin si A, tatanggalan niya ng benefit si B kung
sisingilin niya pa ng 3,000.
Article 1219. The remission made by the creditor of the share which affects one of the solidary debtors
does not release the latter from his responsibility towards the co-debtors, in case the debt had been totally
paid by anyone of them before the remission was effected.
- Nung umaga, nagbayad na si C kay Y. Kaya doon pa lang wala nang utang si A, B, C kay X and
Y. Habang nung hapon, nakasalubong ni A kay X at sabi ni X pinapatawad na nila yung utang ni
A sa kanila. Si C ba ay may karapatan pa rin na mangolekta ng share ni A na binayaran niya nung
umaga? Ang ginawang remission ni X kay A nung hapon ay hindi hadlang para hindi na siya
magbayad kay C. Kasi nung nagbayad siya nung umaga, ang presumption ay obligation pa nilang
tatlo yung inutang nila. And dapat wala nang papatawarin na utang si X kay A dahil nauna yung
pagbayad.
Article 1220. The remission of the whole obligation, obtained by one of the solidary debtors, does not
entitle him to reimbursement from his co-debtors.
- On the due date, nagkita si A at si X, na-convince niya si X na patawarin na yung utang nila, yung
share nilang lahat. Pwede bang siningil ni A si B and C dahil siya ang nakakuha ng remission ng
utang nila? A is not entitled to reimbursement. Kahit si A lang ang nakipag-usap kay X na
patawarin yung utang nila, it would benefit all of the debtor.
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Article 1221. If the thing has been lost or if the prestation has become impossible without the fault of the
solidary debtors, the obligation shall be extinguished.
- Solidary indivisible obligation: A, B and C (solidary debtors) ay nangako na magbigay ng
specific cat na may value ng 6,000 kay X.
- Pag namatay yung cat dahil sa fortuitous event, the obligation shall be extinguished.
If there was fault on the part of any one of them, all shall be responsible to the creditor, for the price and
the payment of damages and interest, without prejudice to their action against the guilty or negligent
debtor.
- Dahil sa pagpapabaya ni C, namatay yung pusa. Kahit walang kamalay malay si A and B sa
negligence ni C, they shall still be liable to the creditor.
- Ex. Nagkasalubong si A and X, dahil solidary sila required na magbayad si A kay X ng 6,000
plus damages. Kahit inosente siya, dahil solidary sila, sa mata ni X ang kasalanan ng isa ay
kasalanan ng lahat (treated as one ang solidary) Pero lahat naman ng inabono ni A ay pwedeng
habulin kay C.
If through a fortuitous event, the thing is lost or the performance has become impossible after one of the
solidary debtors has incurred in delay through the judicial or extrajudicial demand upon him by the
creditor, the provisions of the preceding paragraph shall apply.
- Exception to the rule na ma-extinguish ang obligation pag nawala yung specific thing due to
fortuitous event: pag in legal delay na yung debtors
Article 1222. A solidary debtor may, in actions filed by the creditor, avail himself of all defenses which
are derived from the nature of the obligation and of those which are personal to him, or pertain to his own
share. With respect to those which personally belong to the others, he may avail himself thereof only as
regards that part of the debt for which the latter are responsible.
- Si A and B (solidary debtors) umutang ng 10,000 kay X. Availed valid excuses para hindi na
bayaran ng mga debtor yung utang nila kay creditor.
- Derived from the nature of the obligation: yung 10,000 ay nag prescribed. Naalala ni X at the
11th year at pag kinasuhan ni X yung mga debtors, pwedeng sabihin nila na nag prescribe na
yung utang para sila ay di na magbayad ng utang
- Those personal to him or pertain to his own share: Ang pagiging minor or ang pagiging baliw ay
isang valid defense. Hindi sila pwedeng pumasok sa kontrata, kaya hindi pwedeng siningil ni X si
A na 17 years old pa lang. Pag naningil si X kay A, pwedeng gamitin ni A na minor pa lang sya.
But pwede bang sabihin ni X kay A, kung ikaw ay 17, at dahil solidary kayo bayaran mo na lang
yung share ng kasama mo? NO, yung pagiging minor niya does not only relate sa share niya sa
10,000. Ang tingin din ng batas ay wala rin siyang kakayahan na bayaran yung share ni B.
- Magkano ang pwedeng masingil ni X kay B? 5,000 only Bilang isang solidary debtor,
maari mong gamitin yung defense ng kasama mo kay creditor para hindi bayaran yung
share ni A don sa utang.
Divisible and Indivisible Obligations

Divisible Obligation - one that is capable of partial performance. THe following are deemed divisible:
● When the obligation has for its object the executive of a certain number of days of works such as
an obligation to work for one month
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○ Ex. Magwork ka for 30 days. Pwedeng hindi diretso such as 10 days ngayon, 20 days
next month
● When the obligation has for its object the accomplishment of work by metrical units such as an
obligation to construct a 20-meter long and 2-meter wide wall
● Analogous things which by their nature are susceptible partial performance
Indivisible Obligation - one that is not capable of partial performance. The following obligations are
deemed indivisible:
● Obligations to give definite things such as obligation to deliver a specific cat
● Those not susceptible of partial performance such as an obligation to sing in a wedding ceremony
● Those where the objective or service is physically divisible but it is indivisible by provision of
law such as the obligation to pay certain taxes
○ Ang pera by nature is divisible but ang obligation mo to pay taxes ay dapat isang
bagsakan lang
Divisibility and indivisibility ay tumutukoy don sa object, prestation or nature ng kailangan ibigay na
bagay.
- Example: indivisible obligation- hindi pwedeng mahati hati.
- Obligation to deliver a specific animal. Dapat buo yon
- Example: divisible obligation - obligation to pay a loan. Pwedeng hati-hati (three gives)
Article 1224. A joint indivisible obligation gives rise to indemnity for damages from the time anyone of
the debtors does not comply with his undertaking. The debtors who may have been ready to fulfill their
promises shall not contribute to the indemnity beyond the corresponding portion of the price of the thing
or of the value of the service in which the obligation consists.
Obligation with a penal clause

This is an obligation with a penal clause is one which provides for a greater liability on the part of the
debtor in case of non-compliance.
● The accessory undertaking on the part of the debtor is called penal clause. The penal clause is
generally undertaken to insure performance and works as either, or both, punishment and
reparation, There is no need to present proof of actual damages in order for the penalty to be
demanded (Art. 1228)
○ There is a possibility in having an obligation with someone na hindi nila tutuparin yung
naipangako nila sayo and para madagdagan yung assurance na matatanggap mo yung due
sayo, nagdadagdag sila ng penal clause.
○ Once na mapag-usapan yung penal clause, hindi na kailangan i-prove of actual damages
na hindi nagawa yung obligation.
Principal Obligation - one in which it can stand by itself

- Ex. Bilang isang karpintero, obligation kong ipagtayo ka ng kubo sa isang buwan
- Kahit wala yung penalty clause, pwedeng matuloy yung obligation
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Accessory Obligation - one in which it is attached to a principal obligation and cannot stand alone.
- Ex. Kapag hindi ko natapos sa isang buwan yung pagpapatayo ng kubo, pwede natin lagyan ng
penal clause, magbabayad ako ng P20,000 sayo
- Pero hindi pwede magkaroon ng usapan na magbabayad ng 20,000 kung wala naman
yung principal obligation
- The penal clause serves as a punishment and reparation.
Article 1226. In obligations with a penal clause, the penalty shall substitute the indemnity for damages
and the payment of interests in case of noncompliance, if there is no stipulation to the contrary.
Nevertheless, damages shall be paid if the obligor refuses to pay the penalty or is guilty of fraud in the
fulfillment of the obligation.
- As a general yung napag-usapan na penalty, yon na yung indemnity for damages and interest.
Unless kung pinag-usapan niyo sa simula na maliban sa penalty pwede pa i-charge for damages
and interest.
Article 1227. The debtor cannot exempt himself from the performance of the obligation by paying the
penalty, save in case where this right has been expressly reserved for him. Neither can the creditor
demand the fulfillment of the obligation and the satisfaction of the penalty at the same time, unless this
right has been clearly granted him. However, if after the creditor has decided to require the fulfillment of
the obligation, the performance thereof should become impossible without his fault, the penalty may be
enforced.
- Ang obligation mo is itayo yung bahay, hindi pwedeng magbayad ka na lang ng penalty para
hindi mo na itayo yung bahay. Unless ayon yung napag-usapan niyo na kapag ayaw mo na gawin,
magbabayad ka na lang.
- Dapat mamili ang creditor kung ano ba talaga yung gusto mo, kung ipagpapatayo ka ng bahay o
bayaran ka na lang ng penalty. General rule na hindi pwedeng sabay na na-fulfill na yung
obligation at magbabayad pa yung penalty. Unless, the right has been clearly granted, kung
napag-usapan niyo.
- Pero kung pinili mo ang enforcement of the obligation and hindi pa rin ginawa ng debtor yung
obligation niya, allowed si creditor by law na ituloy na lang yung penalty. Kung hindi niya
ma-avail yung specific performance, papayagan siya ng batas na i-enfotcre na lang yung penalty.
Article 1228. Proof of actual damages suffered by the creditor is not necessary in order that the penalty
may be demanded.
Article 1229. The judge shall equitably reduce the penalty when the principal obligation has been partly
or irregularly complied with the debtor. Even if there has been no performance, the penalty may also be
reduced by the courts if it is iniquitous or unconscionable.
- tama lang dapat yung penalty in accordance sa principal obligation
Article 1230. The nullity of the penal clause does not carry with it that of the principal obligation. The
nullity of the principal obligation carries with it that of the penal clause.
- Nahahawa ang accessory kung ano ang classificiation ng principal niya
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- Kung ang principal obligation ay void, nahahawa yung penal clause dhail nakadepende sya sa
principal
- But yung nullity ng penal clause, hindi applicable sa principal obligation
- Ex. I will give you a specific car within the month, and yung penalty ko is bigyan ka ng shabu.
The principal obligation is valid while the penal clause is void. Yung pagiging null ba ng penal
clause affects the principal obligation? NO
- Ex. Obligation ko is to give you marijuana and pag hindi ko nagawa is to give penalty na 10,000.
Walang mali na magbigay ng 10,000. However void yung principal obligation kaya void na rin
yung penalty
Module 3
Extinguishment of Obligations
Article 1231. Obligations are extinguished by:
1. Payment or performance,
2. Loss of the the due,
3. The condonation or remission of debt,
4. The confusion or merger of the rights of the creditor and debtor,
5. Compensation,
6. Novation
There are also other causes of extinguishment, could be annulment, recission, fulfillment of resolutory
condition and prescription.
PAYMENT OR PERFORMANCE
Article 1232. Payment means not only the delivery of money but also the performance, in any other
manner, of an obligation.
- Under the Civil Code, ma-consider na bayad ka na kung nagawa mo na yung kailangan mong
gawin sa isang obligation.
Article 1233. A debt shall not be understood to have been paid unless the thing or service in which the
obligation consists has been completely delivered or rendered, as the case may be.
- Hindi masasabing bayad ka na kung hindi pa kumpleto ang dapat mong gawin o i-deliver.
- Ex. Kailangan mong mag-deliver ng 10 cases ng Coke at ang dineliver lang ay 8 cases. Ito ay
considered na hindi pa bayad o hindi pa nagawa yung obligation kasi dapat kumpleto.
Article 1234. If the obligation has been substantially performed in good faith,the obligor may recover as
though there had been a strict and complete fulfillment, less damages suffered by the obligee.
- Ex. Um-order ka ng 10 boxes ng face mask pero dahil sa shortage 9 lang ang na-deliver, that
could be considered as substantial performance in good faith.
- Kung wala naman talagang shortage at ayaw niya lang talaga madeliver ng buo, pwede mong
tanggihan. Pero kung may substantial performance in good faith, the obligor/ debtor may recover
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as if nagdeliver siya ng 10 boxes but less damages dahil don sa 1 box na hindi niya na-deliver
sayo.
Article 1235. When the obligee accepts the performance, knowing its incompleteness or irregularity, and
without expressing any protest or objection, the obligation is deemed fully complied with.
- Kapag ikaw ay tumanggap ng isang bagay o isang serbisyo na alam mong hindi kumpleto o hindi
ganoon ang napag-usapan niyo at hindi ka nag-object o nag protesta laban don sa bagay na hindi
ayon sa napag-usapan niyo, the obligation is deemed fully complied with.
- Ex. 10 Class A na t-shirt yung in-order mo pero 9 na Class B ang dumating, dapat i-bring
up mo agad ito sa kausap mo o sa debtor at sabihing hindi mo matatanggap ito dahil iba
ito sa napag-usapan niyo. Ayon sa batas, ang hindi mo pag-object ay waiver on your part.
Ang pagtahimik mo ay isang simbolo na kontento ka na sa natanggap mo.
Article 1236. The creditor is not bound to accept payment or performance by a third person who has no
interest in the fulfillment of the obligation, unless there is a stipulation to the contrary.
- Hindi kailangan tanggapin ni creditor ang bayad ng isang third person para sa utang ni debtor
kahit na mag-benefit sya roon, unless may usapan si debtor and creditor na okay lang na may
ibang tao na magbayad nung utang.
Whoever pays for another may demand from the debtor what he has paid, except that if he paid without
the knowledge or against the will of the debtor, he can recover only insofar as the payment has been
beneficial to the debtor.
- 1st scenario: Pag nagbayad si X (third person) kay creditor with the consent of the debtor, later
on, si X na ang magkaroroon ng karapatan na maningil ng buong amount na binayad niya kay
creditor. Because at the start, kinuha muna ni X yung consent ni debtor na siya ang magbabayad.
- 2nd scenario: Hindi na nagpaalam si X kay debtor o nung nagpaalam siya ay hindi pumayag si
debtor na si X na ang magbabayad kay creditor, ngunit nagbayad pa rin ng 20,000 si X kay
creditor para kay debtor.
- Magkano ang pwedeng mabawi ni X kay creditor kahit di naman siya nagpaalam? X can
recover 20,000 dahil yon yung amount na magbenefit si debtor. Dahil doon sa
pagbabayad ni X ng 20,000 kay creditor, nawalan ng 20,000 na utang si debtor at ayon
yung nakuhang benefit ni debtor at dahil nagbenefit si debtor may karapatan si X na
makakolekta sa kanya.
- Magkakaroon ng distinction kung akala ni X ay buong 20,000 pa ang utang ni debtor kay creditor
pero dati pala ay nakapagbayad na ng 5,000 si debtor at hind ito alam ni X. Nung walang consent
ni debtor, nagbayad ng buong 20,000 si X kay creditor.
- On the due date, magkano ang pwede masingil ni X kay debtor? 15,000 na lang dahil ang
ginawang pagbabayad ni X ay nagbenefit kay debtor na parang nawalan siya ng 15,000
na utang dahil nga dati ay nakapagbayad na siya ng 5,000.
- X can recover the extra 5,000 kay creditor. (Solutio indebiti)
Article 1237. Whoever pays on behalf of the debtor without the knowledge or against the will of the
latter, cannot compel the creditor or subrogate him in his rights, such as those arising from a mortgage,
guaranty, or penalty.
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- Si debtor umutang ng 50,000 kay creditor and may nilagay silang mortgage na kotse. Anong
effect ang pag-inform ni X (third person) kay debtor na siya na ang magbabayad ng utang? Pag
alam ni debtor ang gagawin na pagbabayad ni X (with consent of debtor), pwedeng habulin ni X
yung nakasangla na kotse pag maniningil na siya. Magiging subrogate si X sa position ni creditor
dahil siya ang nagbayad ng utang at sa kanya na may utang si debtor ngayon.
- Kung hindi nakuha ni X yung consent ni debtor sa pagbayad kay creditor and later on
hindi na makakolekta si X kay debtor, hindi pwedeng habulin ni X yung sinangla na
kotse.
Article 1238. Payment made by a third person who does not intend to be reimbursed by the debtor is
deemed to be a donation, which requires the debtor’s consent. But the payment is in any case valid as to
the creditor who has accepted it.
- Ex. Si X na ang magbabayad ng utang ni debtor kay creditor at pagkatapos ay wala siyang balak
na maningil kay debtor. This act requires the consent of the debtor. Hindi ka pwedeng mag donate
sa isang tao directly or indirectly nang walang consent nung taong pinagbibigyan. (Kasama sa
karapatan ng tao na pwedeng tumanggi sa mga binibigay satin, hindi pwedeng pwersahin ang
isang tao na magkaroon ng utang na loob sa iba kaya kailangan ng consent ng taong
pagbibigyan.)
- Later on, hindi na pwedeng bawiin ni X kay debtor nung binigay niya dahil valid
payment.
- Kapag hindi pumayag si debtor sa donation, yung donation ay void kaya pwede bawiin ni
X yung binigay niya. Later on pwede niya siningilin si debtor dahil hindi naman pumayag
si debtor na donation yon.
Article 1239. In obligations to give, payment made by one who does not have the free disposal of the
thing due and capacity to alienate it shall not be valid, without prejudice to the provisions of article 1427
under the Title on “Natural Obligations.”
- Walang bisa yung payment o pagbigay mo ng isang bagay kung hindi naman pala sayo yung
bagay na yon kaya wala kang karapatan na i-dispose iyon at kung wala kang kapasidad na
i-alienate yung bagay na yon (such as minors, and people with mental incapacity).
Article 1240. Payment shall be made to the person in whose favor the obligation has been constituted, or
his successor in interest, or any person authorized to receive it.
- Mag-ingat kung sino ang aabutan ng bayad dahil kung hindi mo in-abot yung bayad mo sa
creditor or someone authorized to receive it, hindi ito ma-consider na valid payment.
Article 1241. Payment to a person who is incapacitated to administer his property shall be valid if he has
kept the thing delivered, or insofar as the payment has been beneficial to him.
- Magiging valid lang ang payment mo sa isang taong mentally incapacitated kapag he has kept the
thing delivered.
- Ex. Nagbayad ka ng 10,000 pesos para sa utang mo sa isang mentally incapacitated, dahil
ganon siya ay sinunog niya yung bayad mo at 2,000 lang yung natira. Magkano sa utang
mo sa kanya ang natitira? 8,000 pa. Sa binayad mo, 2,000 lang yung valid dahil yon lang
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tinago niya o kung yung bayad ay ginamit para sa benefit niya (pinambili ng pagkain
niya).
Payment made to a third person shall also be valid insofar as it has redounded to the benefit of the
creditor. Such benefit to the creditor need not be proved in the following cases:
1. If after the payment, the third person acquires the creditor’s right;
2. If the creditor ratifies the payment to the third person;
3. If by the creditor’s conduct the debtor has been led to believe that the third person had authority
to receive the payment.
Article 1242. Payment made in good faith to any person in possession of the credit shall release the
debtor .
- Para makautang ka sa ibang tao, you sometimes issue a negotiable instrument, e.g. promissory
note. Umutang si debtor kay creditor sa pamamagitan ng promissory note, “I promise to pay the
creditor the amount of 20,000.” What if nalaglag yung promissory note at napunta kay Mr. X. On
the due date, pag nagpunta ba si X kay debtor, dapat magbayad si debtor kay X dahil nasa kanya
yung promissory note? NO, instrument lang yung promissory note. But ang mismong tinutukoy
na credit is yung karapatan ng tao na tumanggap ng bayad at kay creditor nakapangalan yung
note.
- Kung binayaran ni debtor si Mr. X hindi yon valid payment.
- Although there are instruments called bearer instruments stating “Babayaran ko si Mr. C or
bearer,” ang may karapatan makasingil o makakolekta ay si Mr. C o kung sino man ang may
hawak ng bearer instrument. Kung mapunta man kay Mr. X yung note at pumunta siya kay
debtor, pwede siyang bayaran ni debtor at mawawala na yung utang ni debtor kay creditor.
Article 1243. Payment made to the creditor by the debtor after the latter has been judicially ordered the
retain the debt shall not be valid.
- Si Mr. D ay may utang na 50,000 kay Mr. C, nagkataon na si Mr. J ay may utang din na 50,000
kay Mr. D. Nahihirapan si C na makasingil kay D ngayon, ano ang pwedeng hingin ni C sa korte?
Pag nalaman niyang may receivable si D, pwedeng i-request ni C sa korte na sabihan si J na wag
muna magbayad kay D (garnishment/ paghold ng payment for the benefit of the creditor) at pag
hindi na talaga makabayad si D, pwede i-request ni C sa korte na diretso na lang ni J kay C.
- Kung nagbayad pa rin si J kay D kahit na sinabihan na siya ng korte, his payment is
considered not valid.
Article 1244. The debtor of the thing cannot compel the creditor to receive a different one, although the
latter may be of the same value as, or more valuable than which is due.
In obligations to do or not to do, an act of forbearance cannot be substituted by another act of forbearance
against the obligee’s will.
- Hindi mo pwedeng pilitin na tanggapin yung bago mong inaalok dahil specific thing yung
ipinangako mo. Yung creditor pa rin ang magdecide kung tatanggapin niya o hindi.
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Dation in Payment
A special form of payment where the ownership of property is transferred to his creditor to pay a debt in
money. It is important that both debtor and creditor consent to such an arrangement.
Article 1245. Dation in payment, whereby property is alienated to the creditor in satisfaction of a debt in
money, shall be governed by the law of sales.
- Isang way para ma-extinguish ang isang utang ay dation en pago. Ex. May utang ako sayo na
P10,000. Nung naningil ka wala akong pera pero meron akong cellphone. Pag hindi na talaga
makapagbayad, pwedeng mapag-usapan na instead of cash yung object (cellphone) na lang ang
gagamitin na pambayad.
Article 1246. When the obligation consists in the delivery of an indeterminate or generic thing, whose
quality and circumstances have not been stated, the creditor cannot demand a thing of superior quality.
Neither can the debtor deliver a thing of inferior quality. The purpose of the obligation and other
circumstances shall be taken into consideration.
- Ex. Sa isang restaurant, oorder ako ng 10 live na chicken. Kung hindi naman sinabi kung anong
klaseng at quality ng chicken ang need ibigay, hindi pwede magdemand ang buyer/ creditor ng
manok na pangsambong dahil mataas na quality yon, and yung seller/debtor hindi rin pwede
magbigay ng lower quality katulad ng may sakit na manok.
Article 1247. Unless it is otherwise stipulated, the extrajudicial expenses required by the payment shall be
for the account of the debtor. With regard to judicial costs, the Rules of Court shall govern.
- extrajudicial expense: outside the court na mga gastusin
Article 1248. Unless there is an express stipulation to that effect, the creditor cannot be compelled
partially to receive the prestations in which the obligation consists. Neither may the debtor be required to
make partial payments.
- hindi pwedeng part of one prestation and part of another prestation ang matatangap ni creditor o
ang bibigay ni debtor
However, when the debt is in part liquidated and in part unliquidated, the creditor may demand and the
debtor may effect the payment of the former without waiting for the liquidation of the latter.
Article 1249. The payment of debts in money shall be made in the currency stipulated, and if it is not
possible to deliver such currency, then in the currency which is legal tender to the Philippines.
- General rule sa currency sa pagbayad ng utang: kung ano ang napag-usapan (hindi necessary na
Philippine peso) and kung hindi possible to deliver yung currency na napag-usapan, then yung
Philippine peso ang gagamitin
The delivery of promissory notes payable to order, or bills of exchange or other mercantile documents
shall produce the effect of payment only when they have been cashed, or when through the fault of the
creditor they have impaired. In the meantime, the action derived from the original obligation shall be held
in the abeyance.
Article 1250. In case an extraordinary inflation or deflation of the currency stipulated should supervise,
the value of the currency at the time of establishment of the obligation shall be the basis of payment,
unless there is an agreement to the contrary.
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Legal Tender Law

● Philippine currency notes have no limit to their legal tender power. In particular, all notes and
coins issued by the BSP shall be fully guaranteed by the Government of the Republic of the
Philippines and shall be legal tender to the Philippines for all debts, both public and private, as
stipulated under Section 52 of R.A. no. 7653.
● However, in the case of coins in denomination of 1-, 5-, and 10-Piso they shall be legal tender in
amounts not exceeding Php 1,000, while coins in denominations of 1-, 5-,10-, and 25-Sentimo
shall be legal tender in amounts not exceeding Php 100, pursuant to BSP Circular No. 537,
Series of 2008.
○ Pwede mo ipambayad sa mga binibili mo but subject to certain limits
■ Pagpupunta ka sa stores at bibili ka ng isang polo na worth Php 1,000. Kahit ang
ibabayad mo ay 1,000 na piraso ng piso hindi ka nila pwedeng tanggahin, unless
kung ang halaga ng polo ay Php 1,100 dahil lagpas na sa limit. Ang 1-, 5- at 10-
ay pwede ipambili nang sabay-sabay kung ang presyo ng bibilhin ay hindi
lalampas ng 1,000.
■ Samantala ang 1-, 5-, 10-, at 25- Sentimo ay legal tender basta ito ay hindi
lalampas ng Php 100.
■ Under the legal tender law, currency notes have no limit. Kaya kahit tig 20-peso
bill ang ibayad mo for 50,000 okay lang.
Article 1251. Payment shall be made in the place designated in the obligation.
There being no express stipulation and if the undertaking is to deliver a determinate thing, the payment
shall be made wherever the thing might be at the moment the obligation was constituted.
In any other case the place of the payment shall be the domicile of the debtor.
- bahay ng umutang
If the debtor changes his domicile in bad faith or after he has incurred in delay, the additional expense
shall be borne by him.
- kung lumilipat lipat ng bahay si debtor, yung mga additional expenses ni creditor ay ma-charge sa
kanya
These provisions are without prejudice to venue under the Rules of Court.
Application of Payment
It is the designation of the debt to which payment shall be applied when the debtor owes several debts in
favor of the same creditor.
- applicable only kapag ang isang umuutang (debtor) ay maraming utang sa kanyang
pinagkakautangan (creditor)
Requisites of application of payment:

a. There must be two or more debts
b. The debts must be of the same kind (ex. both monetary)
c. The debts are owed by the same debtor to the same creditor
d. All debts are due, except:
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i. When the parties have stipulated that payment may be applied to a debt not yet due or
ii. When the application is made by the party for whose benefit the term has been
constituted.
Article 1252. He who has various debts of the same kind in favor of one and the same creditor, may
declare at the time of making the payment, to which of them the same must be applied. Unless the parties
so stipulate, or when the application of payment is made by the party for whose benefit the term has been
constituted, application shall not be made as to debts which are not yet due.
- Hindi mo pwedeng gamitin yung inabot na pera para bayaran yung mga utang na hindi pa due
If the debtor accepts from the creditor a receipt in which an application of the payment is made, the
former cannot complain of the same, unless there is a cause for invalidating the contract.
- Ex. Si D may utang na 10,000 kay C and later on umutang ulit ng 5,000. Nung magbabayad na
siya ang inabot niya lang ay 3,000. Tatanungin ni C si D kung saang utang niya ba ibabawas o
i-aaply yung bayad niya.
Article 1253. If the debt produces interest, payment of the principal shall not be deemed to have been
made until the interests have been covered.
- anytime na may utang ka ang una mo dapat bayaran ay interest
Article 1254. When the payment cannot be applied in accordance with the preceding rules, or if
application can not be inferred from other circumstances, the debt which is most onerous to the debtor,
among those due, shall be deemed to have been satisfied.
If the debts due are of the same nature and burden, the payment shall be applied to all of them
proportionately.
- Ex. Si D may utang na 10,000 kay C and later on umutang ulit ng 5,000. Nung magbabayad na
siya ang inabot niya lang ay 3,000. Ano ang pagkakasunod sunod o hierarchy ng application ng
3,000 sa mga utang ni D? Sino ang unang tatanungin kung saan i-aapply?
1. Choice ni debtor - kung ano ang gusto ni debtor na utang na mabayaran, siya yung
masusunod
2. Pag hindi nakapili si debtor, choice ni creditor - si creditor na ang mamimili kung saan
ibabawas yung 3,000 na binayad
3. Pag hindi pa sila nakapili (Article 1254), apply the payment sa liability which is most
onerous to the debtor - most burdensome kay debtor.
○ Kelan most onerous ang isang utang? Kapag ang liability ay may interest. Kapag
ang liability ay may penalty. Kapag ang liability ay may collateral. Kung ang
isang liability ay nag-ccontain ng isa nito, that amount is deemed to be most
onerous.
○ Kung interest bearing si 10,000 and non-interest si 5,000, as stated in Article
1254 dapat kay 10,000 i-apply yung payment dahil mas onerous ang interest
bearing note.
4. What if both debts are non-interest bearing notes? The payment shall be applied to all of
them proportionately.
○ 2,000 ang i-apply sa 10,000 (3,000 x 10/15) and 1,000 naman sa 5,000 (3,000 x
5/15)
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Payment by Cession
- cede: to give up all your properties for the payment of your obligation
● It is the abandonment or assignment by the debtor of all his property in favor of his creditors so
that the latter may sell them and recover their claims out of the proceeds.
● The cession or assignment operates only to authorize the creditors to sell the debtor’s property,
hence, ownership is not transferred to them.
○ Dation en pago and payment by cession both involve property to pay for debt. In dation
en pago, you give up one of your property to pay for your debt.
○ In payment by cession, you give ALL of your properties to pay for your DEBTS. But in
payment by cession, mas malaki yung amount ng utang kaya ang pinag-uusapan ay
kailangan i-give up LAHAT NG PROPERTY and MARAMING CREDITORS ang
pinagkakautangan.
Article 1255. The debtor may cede or assign his property to his creditors in payment of his debts. This
cession, unless there is stipulation to the contrary, shall only release the debtor from responsibility for the
net proceeds of the thing assigned. The agreements which, on the effect of the cession, are made between
the debtor and his creditors shall be governed by special laws.
Tender of Payment and Consignation

Tender of payment is the act of the debtor offering to his creditor the performance of an obligation.
Consignation is the act of depositing the sum or the thing due in court whenever the creditor unjustly
refuses or in cases when the creditor cannot accept it.
- tender of payment : pag-aabot ng bayad, pagtry mo na i-abot yung bayad kay creditor
- Pagkaalok mo ng bayad at ayaw niya tanggapin, your next step is consignation. Ipapa-consign/
ipapatago mo muna sa korte
Sequence of events in Tender of Payment and Consignation

● There must be a valid tender of payment. It must possess all the elements of a valid payment.
(inaabot mo yung bayad, kumpleto ang bayad mo, and the debt is due na)
● The creditor unjustly refuses to receive payment. (Wala namang dahilan kung bat ayaw niya
tanggapin dahil kumpleto naman)
● The debtor shall notify the creditor or any person interested in the fulfillment of the obligation of
his (the debtor’s) intention to deposit the sum or thing due with the judicial authorities. (First
notice: sasabihan ni debtor si creditor na dahil ayaw niya tanggapin yung bayad, ipapa-consign
niya na sa korte)
● The sum or thing due is deposited in court/judicial authorities.
● The debtor shall AGAIN notify the persons interested in the fulfillment of the obligation that
consignation has been made. (After mo i-deposit, sasabihin ulit si creditor)
Kailangan dalawang beses i-notify si creditor because of the due process. The first notice serves as a last
chance kay creditor na tanggapin yung payment. Dahil pag hindi niya tinanggap at pina-consign na, kung
kukunin niya na yung bayad sa korte, may charge na collectible kay creditor (consignation fee). While the
second notice ay para sabihin kay creditor na wag na kulitin si debtor dahil wala na sa kanya yung bayad
kundi nasa korte na.
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Article 1256. If the creditor to whom tender of payment has been made refuses without just cause to
accept it, the debtor shall be released from responsibility by the consignation of the thing or sum due.
Consignation alone shall produce the same effect in the following cases: (exceptions - pwede ka na
dumiretso sa korte para magpa-consign kahit wala pang tender of payment)
1. When the creditor is absent or unknown, or does not appear at the place of payment;
2. When he is incapacitated to receive the payment at the time it is due;
3. When, without just cause, he refuses to give a receipt; (nagbabayad ka pero ayaw ka man lang
bigyan ng resibo, pwede kang baliktarin later on)
4. When two or more persons claim the same right to collect; (namatay yung pinagkakautangan mo
at hindi alam kung kanino mapupunta sa mga pinag-iwanan)
5. When the title of the obligation has been lost. (Nawala yung promissory note)
Article 1257. In order that the consignation of the thing due may release the obligor, it must first be
announced to the persons interested in the fulfillment of the obligation.
The consignation shall be ineffectual if it is not made strictly in consonance with the provisions which
regulate payment.
- refers to the first notification
Article 1258. Consignation shall be made by depositing the things due at the disposal of judicial
authority, before whom the tender of payment shall be proved, in a proper case, and the announcement of
the consignation in other cases.
The consignation having been made, the interested parties shall also be notified thereof.
- refers to the second notification which is after consignation
Article 1259. The expenses of consignation, when properly made, shall be charged against the creditor.
- si creditor ang may kasalanan kung bakit pa umabot sa consignation
Article 1260. Once the consignation has been duly made, the debtor may ask the judge to order the
cancellation of the obligation.
Before the creditor has accepted the consignation, or before a judicial declaration that the consignation
has been properly made, the debtor may withdraw the thing or the sum deposited, allowing the obligation
to remain in force.
Article 1261. If, the consignation having been made, the creditor should authorize the debtor to withdraw
the same, he shall lose every preference which he may have over the thing. The codebtors, guarantors and
sureties shall be released.
- pinapayagan ni creditor na bawiin yung iniwang pera sa korte
LOSS OF THE THING DUE

A thing is considered lost when it perishes or goes out of commerce or disappears in such a way that its
existence is unknown or it cannot be recovered.
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Article 1262. An obligation which consists in the delivery of a determinate thing shall be extinguished if
it should be lost or destroyed without the fault of the debtor, and before he has incurred in delay.
- Ang kailangan mo i-deliver ay isang specific object and nawala dahil sa isang fortuitious event,
the obligation will be extinguished.
When by law or stipulation, the obligor is liable even for fortuitous events, the loss of the thing does not
extinguish the obligation, and he shall be responsible for damages. The same rule applies when the nature
of the obligation requires the assumption of risk.
- Kapag napag-usapan ng parties na kahit mawala yung bagay sa fortuitous event, pwede nilang
i-stipulate na liable pa rin yung debtor. This also applies when the obligation requires the
assumption of risk such as insurance company liable pa rin pag nasira yung bahay sa lindol.
Article 1263. In an obligation to deliver a generic thing, the loss or destruction of anything of the same
kind does not extinguish the obligation.
- genus nunquam perit
Article 1264. The courts shall determine whether, under the circumstances, the partial loss of the object
of the obligation is so important as to extinguish the obligation.
- Minsan hindi kailangan totally masira or mawala para masabi na may loss, kahit partial lang yung
effect sa subject matter. The obligation may be so important na dahil sa partial effect na yon
pwede na ma-extinguish yung obligation.
- Ex. Bumili ka ng isang manok panabong, pero parang pilay siya. Yung ganon kaliit na
bagay na parang pilay sya kahit wala namang sakit ay enough reason na to cancel the
contract of sale. Dahil kung parang pilay yung manok at ilalaban mo siya, the probability
na matalo ka ay malaki na.
Article 1265. Whenever the thing is lost in the possession of the debtor, it shall be presumed that the loss
was due to his fault, unless there is proof to the contrary, and without prejudice to the provisions of article
1165. This presumption does not apply in case of earthquake, flood, storm, or other natural calamity.
- Ikaw yung seller at yung ipinangako mong subject matter ay bigla na lang namatay nang wala
kang mapakitang dahilan, the presumption is napabayaan mo unless mapakita mo na hindi mo
kasalanan.
Article 1266. The debtor in obligations to do shall also be released when the prestation becomes legally
or physically impossible without the fault of the obligor.
- Ex. Isa kang singer at may kontrata ka to sing in a concert. A few days before the concert,
kinailangan na operahan ka sa lalamuan dahil sa sakit mo. Sasabihin mo sa guest na physically
impossible nang makakanta ka, dahil wala ka naman kasalanan dahil sakit yon.
- If valid yung reason it could be an excuse para hindi ka magkaroon ng obligation.
Article 1267. When the service has become so difficult as to be manifestly beyond the contemplation of
the parties, the obligor may also be released therefrom, in whole or in part.
- Dahil nasa pandemic tayo maraming obligation ang hindi na ganon kadaling i-apply.
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- Ex. Contractor ka ng bahay na kailangan tapusin in 3 months. Hindi ganon kadaling

gawin dahil may mga protocols. Pwede ka (debtor) marelease sa obligation mo dahil
hindi mo naman ineexpect na ganon mangyayari.
Article 1268. When the debt of a thing certain and determinate proceeds from a criminal offense, the
debtor shall not be exempted from the payment of its price, whatever may be the cause for the loss, unless
the thing having been offered by him to the person who should receive it, the latter refused without
justification to accept it.
- Ex. May isang snatcher na nagnakaw ng phone worth 10,000. Habang nasa possession ng
magnanakaw, ito ay nasira. Magiging liable pa rin ba yung magnanakaw sa ninakawan niya? OO.
Nasira dahil nalaglag habang hinahabol ka ng mga pulis — liable ka pa rin. At kung hindi naman
kasalanan nung magnanakaw, tinamaan ng kidlat yung phone habang nasa presinto, liable pa rin
yung magnanakaw, dahil ang reason kung bakit nandon yung cellphone ay ninakaw pa rin niya.
- Kahit ano man ikinasira nung subject matter, yung nagcommit ng criminal offense o yung
nagnakaw ay liable pa rin.
- Pero kung binabalik na nung magnanakaw pero ayaw tanggapin ng may-ari at biglang tinamaan
ng kidlat, hindi justified yung pagrefuse ng may-ari, mawawala na yung liability ng magnanakaw
dahil sinosoli niya na at yung may-ari na yung nawalan. Pero kung justified yung pagrefuse,
“maam ibabalik ko na po pero iatras niyo po yung kaso”, liable pa rin yung magnanakaw kahit
anong cause ng pagkasira.
Article 1269. The obligation having been extinguished by the loss of the thing, the creditor shall have all
the rights of action which the debtor may have against third persons by reason of the loss.
- Nakapagbayad na si buyer and biglang nasira ni Mr. X yung subject matter, originally si seller
ang maghahabol pero dahil nakabayad na si buyer pwedeng si buyer na ang maghabol kay Mr. X.
CONDONATION OR REMISSION
It is known as the gratuitous abandonment by the creditor of his right to go after the debtor for the
fulfillment of the latter’s obligation to the former.
- walang kapalit na pag-abandon sa utang
Kinds of Condonation
1. As to amount or to extent:
● Total - When the entire obligation is remitted
● Partial - When only a part of the obligation or an accessory obligation is remitted
Article 1270. Condonation or remission is essentially gratuitous, and requires acceptance by the obligor.
It may be made expressly or impliedly.
- hindi required tumanggap ng generosity ng ibang tao, kailangan may acceptance expressly or
impliedly to be valid.
One and the other kind shall be subject to the rules which govern inofficious donations. Express
condonation shall, furthermore, comply with the forms of donation.
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Article 1271. The delivery of a private document evidencing a credit, made voluntarily by the creditor to
the debtor, implies the renunciation of the action which the former had against the latter.
- pagkailangan ng extra assurance ni creditor kay debtor, magpapa issue siya ng promissory note.
Pagmaniningil na si creditor, dala niya yung promissory note kapalit ng pera na ibabayad ni
debtor. Pero kung hindi pa nagbabayad si debtor kay creditor, yet sinosoli na ni creditor kay
debtor yung promissory note, this implies the renunciation of the action. Huwag mong ibalik
yung note kay debtor dahil ayon sa batas ang presumption nito na hindi ka na interesado sa utang.
If in order to nullify this waiver it should be claimed to be inofficious, the debtor and his heirs may
uphold it by proving that the delivery of the document was made in virtue of payment of the debt.
- However, later on pwede i-prove na yung balik ng note kay debtor ay dahil sa ibang reason, not
necessarily dahil na pinapatawad na ni creditor yung utang. (Disputable presumption lang yung
nabuo)
Article 1272. Whenever the private document in which the debt appears is found in the possession of the
debtor, it shall be presumed that the creditor delivered it voluntarily, unless the contrary is proved.
- Presumption is binigay ni creditor yung private document (promissory note) kay debtor unless
i-prove ni creditor na hindi voluntarily ang nangyari.
Article 1273. The renunciation of the principal debt shall extinguish the accessory obligations; but the
waiver of the latter shall leave the former in force.
- Ex. Umutang ka ng 1,000,000 and nanghingi ng collateral na bahay. Yung loan na 1M ay ang
principal obligation and yung bahay (real estate mortgage) ay ang accessory obligation. Kapag
pinatawad na yung principal obligation na 1M, yung real estate mortgage ay nawawala na rin
dahil kung pinatawad na yung loan wala nang reason na nakasangla pa yung bahay. Pero kapag
yung collateral lang ang in-extinguished, yung principal ay nandon pa rin.
Article 1274. It is presumed that the accessory obligation of pledge has been remitted when the thing
pledged, after its delivery to the creditor, is found in the possession of the debtor, or of a third person who
owns the thing.
- Ex. Umutang ka ng 5,000 sa isang pawnshop at iniwan mo yung singsing (contract of pledge).
Ang presumption ay yung accessory obligation of pledge ay parang nawala na kapag yung
singsing na iniwan sa pawnshop ay bumalik na sa kamay ni debtor. Tinatanggal na yung collateral
na singsing kapag naibalik na yung singsing. But hindi lagi na kapag binalik na ay bayad na.
2. As to form:
● Express - Expressly made by the creditor either orally or in writing although the required
formalities for donation must be observed:
○ When the condonation involves the immovable/ real property, the condonation and the
acceptance must be in a public instrument (notariado). Acceptance can be made in the
deed of donation itself or in a separate public document.
○ When the condonation involves movable/personal property:
■ If the value of the property EXCEEDS P5,000, the condonation and the
acceptance must be in writing (public or private).
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■ If the value of the property is P5,000 or less, the condonation and the acceptance
may be in any form. If the condonation is made orally, it would require the
simultaneous delivery of the document representing the debt and the acceptance.
● Implied - one where it can be inferred from the conduct or the parties.
CONFUSION OR MERGER
Confusion or Merger is the meeting in one person of the characters of the creditor and debtor.
Article 1275. The obligation is extinguished from the time the characters of creditor and debtor are
merged in the same person.
- Ex. Nag-issue si D ng promissory note kay C. Dahil hindi na makapag-intay si C, ni-negotiate
niya ang kanyang instrument kay A. Tapos si A naman ay pinambayad yung instrument kay B.
Later on, si B pinambayad niya yung promissory note kay D. Siya yung dating may obligation
pero ngayon si D na rin ang may karapatan mangolekta. Nag-merge sa katauhan ni D yung
pagiging debtor and creditor.
- Pagnag-merge sa katauhan mo yung pagiging debtor and creditor, wala na yung utang.
Article 1276. Merger which takes place in the person of the principal debtor or creditor benefits the
guarantors. Confusion which takes place in the person of any of the latter does not extinguish the
obligation.
Article 1277. Confusion does not extinguish a joint obligation except as regards the share corresponding
to the creditor or debtor in whom the two characters concur.
COMPENSATION
Compensation shall take place when two persons, in their own right are creditors and debtors of each
other.
- offsetting, may utang ako sayo and may utang ka rin sakin
Kinds of Compensation:
As to Extent:
● Total - debts are of the same amount
● Partial - debts are of different amount
As to cause or origin:
● Legal - compensation by operation of law
● Voluntary or conventional - when the parties agree to compensation when debts are not
yet due. (Kayo mismo nagdecide na i-offset na lang sa isa’t isa)
● Judicial - this compensation ordered by the court like when one party has a claim for
damages over another. (Korte ang nagsabi na i-offset na lang)
● Facultative - this is compensation that may be claimed by only one of the parties.
○ Ex. May utang ako na sayo na 100,000 and ikaw pinagtripan mong sirain yung
kotse ko at ang halaga ng damages ay 100,000. Hindi porket 100,000 ang utang
natin sa isa’t isa ay i-offset na agad. Under the concept of facultative
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compensation, pag ikaw ay naningil sakin ng 100,000, I could always say na

hindi na kita kailangan bayaran kasi may utang ka pa naman na 100,000 sa akin
dahil sa sinira mo sa kotse ko. Pero kapag ako na ang naningil sayo ng 100,000
dahil sa kotse ko, hindi mo pwedeng sabihin na dati ay may utang ako sayo na
100,000. Bayaran mo muna ako ng 100,000 at pagdating ng panahon tyaka kita
babayaran ng 100,000. Ang karapatan lang mag offset ay binibigay lang sa
biktima.
Article 1279. In order that compensation may be proper, it is necessary:

1. That each one of the obligors be bound principally, and that he be at the same time a principal
creditor of the other;
2. That both debts consist in a sum of money, or if the things due are consumable, they be of the
same kind, and also of the same quality if the latter has been stated;
3. That the two debts be due;
4. That they be liquidated and demandable;
5. That over neither of them there be any retention or controversy, commenced by third persons and
communicated in due time to the debtor.
NOVATION
Novation is the modification or extinguishment of an obligation by another, either by changing the object
of the obligation or by substituting the person of the debtor or subrogating a third person in the rights of
the creditor. Novation has two functions, one is to extinguish an existing obligation and the other is to
substitute a new one in its place.
- Dation en pago is an example of novation in its essence. Changing the object of the obligation:
ang isang monetary obligation ay pinapalitan ng isang object
Article 1292. In order that an obligation may be extinguished by another which substitutes the same, it is
imperative that it be so declared in unequivocal terms, or that the old and the new obligations be on every
point incompatible with each other.
- dapat explicitly naipakita na nakalagay na ito na yung bagong utang kapalit nung dating liability
Article 1293. Novation which consists in substituting a new debtor in the place of the original one, may
be made even without the knowledge or against the will of the latter, but not without the consent of the
creditor. Payment by the new debtor gives him the rights mentioned in articles 1236 and 1237.
- whoever pays for another may demand from the debtor what he has paid except if he has paid
without the knowledge or will of the debtor, he can recover only insofar as the payment has been
beneficial to the debtor
Article 1294. If the substitution is without the knowledge or against the will of the debtor, the new
debtor's insolvency or non-fulfillment of the obligations shall not give rise to any liability on the part of
the original debtor.
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Article 1295. The insolvency of the new debtor, who has been proposed by the original debtor and
accepted by the creditor, shall not revive the action of the latter against the original obligor, except when
said insolvency was already existing and of public knowledge, or known to the debtor, when the delegated
his debt.
Kinds of Substitution
1. Expromission - That which takes place when a third person of his own initiative and without the
knowledge or against the will of the original debtor assumes the latter’s obligation with the
consent of the creditor, The original debtor may or may not give consent.
2. Delegacion - That which takes place when the creditor accepts a third to take place of the debtor
at the instance of the latter. All of the parties must give consent. (Original debtor ang nagpush ng
substitution)
Difference of Expromission and Delegacion

1. As to recovery from the original debtor
2. As to the effect of the new debtor’s insolvency
Si debtor may utang na 10,000 kay creditor. In Novation, pwede palitan or substitute si debtor ng third
person, si Mr. X.
- nakadepende kung kaninong idea bakit napunta si Mr. X (third person) sa obligation
Expromission Delegacion
Kung si X ay napunta sa obligation dahil sa Dahil kay debtor, napasok si X sa obligation.

sariling desisyon niya. - Na-delegate ni D kay X ang kanyang
- initiative na pumasok siya sa obligation ay utang. Si X muna ang pansamantalang
magbabayad ng utang ni D
nakay X lang
Two scenario: Laging may consent ni debtor dahil ang nagpasok

1. Kapag pumasok si X sa obligation, may sa kanya sa obligation ay si debtor.
consent ni debtor — with consent
2. No consent or hindi talaga humingi ng
consent
As to recovery from the original debtor:

Si X na yung bagong debtor and siya muna magbabayad ng 10,000 kay creditor. Kung hindi naman
donation, later on sisingilin niya rin ng 10,000 si debtor.
Magkano ang mababawi ni X kay D, original Magkano ang mababawi ni X kay D, original
debtor? debtor?
1. Kapag may consent, ang mababawi niya He can recover the full amount of payment
kay D ay kung magkano ang total na dahil may consent naman ni debtor.
binayad niya.
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2. Kapag walang consent, he can only

recover what is beneficial para kay D.
As to the effect of new debtor’s insolvency:

Kapag nagkaroon na ng novation si X na ang sisingilin ni C. What if si X naman ang naging
insolvent kaya hindi makakolekta si C. Pwede pa bang balikan ni C yung luma niyang debtor
na si D?
Hindi na, may consent man o wala. The Hindi na. The general rule is bawal na balikan ni
insolvency of the new debtor will not give C yung lumang debtor kahit pa sabihin na si
rise to the liability of the old debtor. Once original debtor ang nagpasok kay X. The new
debtor’s insolvency will not revive the old
na palitan mo ang debtor ng ibang tao at
debtor’s liability.
hindi siya naging okay financially, hindi Unless, the insolvency of X was already existing
mo na pwedeng balikan yung luma. and of public knowledge, or is known to the
original debtor when he delegated the debt, the old
debtor shall be liable again for the obligation.
- Kung at the time of delegation, alam na ni
D na may financial problem si X, dapat
sagutan niya ulit yung obligation.
- Bad faith on the part of the old debtor,
dahil alam niya nang may financial
problem tapos sa kanya pa dinelegate,
kaya pwedeng habulin ni C si D.
Module 4
LAW ON CONTRACTS
Art. 1305. A contract is a meeting of minds between two persons whereby one binds himself, with
respect to the other, to give something or to render some service.
- Meeting of the minds: nagkaroon ng agreement o pagkakasundo ang isip ng dalawang partido na
papasok sa isang kontrata na ang isang panig ay nangangakong magbigay ng isang bagay o
mag-render ng service.
- Ex. Contract of sale: may meeting of minds between buyer and seller na pagbebentahan ka niya
ng isang bagay
Art. 1306. The contracting parties may establish such stipulations, clauses, terms and conditions as they
may deem convenient, provided they are not contrary to law, morals, good customs, public order, or
public policy.
- Walang pakialam ang other parties kung ano ang ilalagay na stipulations or provisions sa inyong
kontrata as long as yung mga ilalagay na stipulations or terms ay hindi labag sa batas
- Ex. Babayaran kita ng 1,000,000. Ang kapalit ay papatayin mo yung kaaway ko. - labag
sa batas
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- Ex. Susustentohan kita buwan buwan-buwan basta ikaw ay magiging kabet. -- against the
law and morality
- Ex. Bibigyan kita ng 10,000,000 kung susuntukin mo lolo mo. -- against good customs
and morals
Art. 1307. Innominate contracts shall be regulated by the stipulations of the parties, by the provisions of
Titles I and II of this Book, by the rules governing the most analogous nominate contracts, and by the
customs of the place.
● Nominate contracts - contracts na nabigyan ng batas ng pangalan (contract of sale, contract of
loan, contract of mortgage,marriage contract)
● Innominate contracts - contracts na hindi nabigyan ng specific na pangalan
○ Do ut des - I give, so that you may give
○ Do ut facias - I give, so that you may do
○ Facio ut des - I do, so that you may give
○ Facio ut facias - I do, so that you may do
Art. 1308. The contract must bind both contracting parties; its validity or compliance cannot be left to the
will of one of them.
- Dapat sumunod ang both parties sa kanilang napag-usapan, pag hindi sumunod yung isa pwede na
isawalang bahala yung kontrata
- Hindi pwedeng maiwan yung compliance sa isang party. Kung hindi na sila matutuloy sa
pinag-usapang kontrata, dapat dalawa silang mag-decide.
- Dalawa rin kayong mag-decide kung valid yung kontrata.
Art. 1309. The determination of the performance may be left to a third person, whose decision shall not
be binding until it has been made known to both contracting parties.
- Minsan binibigay sa third person ang kapangyarihan na magdecide ng terms sa isang kontrata.
- Ex. contract of sale, if you feel that a third person is in a better position to state the fair
market value of an item. Pwedeng mag-appoint ng third person na mas may alam sa kotse
para magdesisyon ng presyo. His decision about the price will only be binding between
the parties kapag na-relay na nung third party yung information
Art. 1310. The determination shall not be obligatory if it is evidently inequitable. In such case, the courts
shall decide what is equitable under the circumstances.
- Bawal na yung decision ng third person ay biased or unfair to the other party. If ever na unfair sa
isang party, pwedeng dalhin sa korte at mapawalang bisa ang ginawang determination ng third
person.
Art. 1311. Contracts take effect only between the parties, their assigns and heirs, except in case where the
rights and obligations arising from the contract 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.
- Umutang ako ng 10,000 sayo. Ako lang din pwede mo siningiln sa utang, hindi mo pwedeng
siningil sa mga kamag-anak o kaibigan. Ako lang dapat magbayad non sayo. The only time na
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pwede mong habulin sa aking mga tagapagmana ay kapag bigla akong namatay. Yung utang ko
sayo ay mapapamana ko sa aking mga anak.
- Kapag namatay yung lolo mo at nagmana ka ng bank account niya na may laman na 1,000,000
sana na mapupunta yon. Pero nung siya ay nabubuhay may utang siyang 20,000, pwedeng sayo
siningilin yung 20,000 dahil ikaw yung tagapagmana siya dahil sufficient naman yung
mamanahin mo para mabayaran yung utang. (In fact, bago mo manahin dapat nabawas na yung
utang)
- Kung walang tagapagmana, yung utang ay hindi na ma-collect.
- Hindi rin pwedeng lumapas sa namana mong pera yung utang na hahabulin sayo. Hindi ka
magiging abonado.
- Ex. May utang yung tatay mong 60,000 pero 50,000 lang ang namana mo. Hindi
pwedeng habulin yung buong 60k sayo dapat hanggang sa namana mo lang which is
yung 50k.
If a contract should contain some stipulation in favor of a third person, he may demand its fulfillment
provided he communicated his acceptance to the obligor before its revocation. A mere incidental benefit
or interest of a person is not sufficient. The contracting parties must have clearly and deliberately
conferred a favor upon a third person.
Art. 1312. In contracts creating real rights, third persons who come into possession of the object of the
contract are bound thereby, subject to the provisions of the Mortgage Law and the Land Registration
Laws.
- Ang isang owner ay nagsala ng lupa sa isang creditor. Kapag nakasanla ang isang lupa, may
annotation na nakalagay sa titulo to indicate na nakasanla yung lupa.
- Nagbabago ba ang ownership nito?
- HIndi. Nananatling pagmamay-ari ni debtor yung lupa.
- Ang lupang nakasanla ay pwede bang ibenta sa iba?
- Yes. Dahil nakay debtor pa rin naman yung lupa kahit nakasanla.
- Kailangan mag-ingat kung bibili ng lupang nakasanla dahil kung hindi pa fully paid yung utang
kahit binayaran mo na yung full amount ng selling price sa original debtor, hindi pa rin maililipat
sayo yung titulo ng lupa.
Art. 1313. Creditors are protected in cases of contracts intended to defraud them.
● Accion pauliana - creditor is given the right to impute the contract pag gumawa ng paraan yung
debtor na maloko yung creditor.
○ Process of attachment - pag hindi pa bayad yung debtor sayo pwede mag-request sa korte
upang hilahin yung certain properties ni debtor
■ Yung ibang debtor pag alam na nilang hihilahin yung assets nila, pumapasok sa
absolute stimulated sales para malipat yung ownership sa iba
Art. 1314. Any third person who induces another to violate his contract shall be liable for damages to the
other contracting party.
- If alam mong may kontrata na between two parties, wag kang (third person) makialam para
ma-induce mo yung isa to violate the other dahil magiging liable ka for damages.
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- Ex. may kontrata ako between artists as their manager for a number of years. Dahil
nakitaan mo ng potential yung isa, sinusulsulan mo na siya na tapusin na agad yung
management contract namin para lumipat na siya sayo. Pag nalaman na ikaw yung
nag-induce sa kanya para i-violate yung aming kontrata, hindi lang yung artist yung
kakasuhan dahil iniwan niya yung contract but pati ikaw na nag-convince sa kanya.
Art. 1315. Contracts are perfected by mere consent, and from that moment the parties are bound not only
to the fulfillment of what has been expressly stipulated but also to all the consequences which, according
to their nature, may be in keeping with good faith, usage and law.
- Contrary to popular belief, hindi sa lahat ng pagkakataon, written ang contract. Pwedeng oral lang
basta may consent.
Art. 1316. Real contracts, such as deposit, pledge and Commodatum, are not perfected until the delivery
of the object of the obligation.
- Real ~~> Latin word: res - meaning object
- I-deliver muna yung thing bago masabing may kontrata
- Ex. Kailangan mo muna iwan yung pera, diamond, etc. para masabing may contract of deposit
- Ex. Contract of pledge -- hindi masasabing nakasanla yung item hanggang hindi mo pa iniiwan
- Ex. Contract of commodatum -- masasabi mo lang na napahiram mo na yung thing pag na-deliver
mo yung object
Consensual contract - perfected by mere consent

Solemn contract - nag-rrequire ng certain formalities (kabaliktaran ng consensual contract)
- Kailangan may masunod whether in writing or not, case to case basis
Stages of a contract
1. Preparation stage - negotiation stage, nag-uusap/ nagtatawaran yung parties
2. Perfection stage - birth of the contract, pag nag-agree na kayo sa objects, terms
3. Consummation stage - termination of the contract, na-perform na nung parties ang mga kanilang
respective obligations
Art. 1317. No one may contract in the name of another without being authorized by the latter, or unless
he has by law a right to represent him.
- Hindi pwedeng makipag-bind ang isang tao sa isang kontrata kung hindi mo siya in-authorize or
hindi siya yung representative. Walang bisa dapat yung gagawin ng third person kung hindi mo
naman siya pinayagan.
A contract entered into in the name of another by one who has no authority or legal representation, or who
has acted beyond his powers, shall be unenforceable, unless it is ratified, expressly or impliedly, by the
person on whose behalf it has been executed, before it is revoked by the other contracting party.
● UNENFORCEABLE CONTRACT - valid but kung ikaw ay hindi willing mag-comply, hindi ka
pwedeng kasuhan ng other contracting party sa korte
○ Ex. Binenta ng katulong niyo yung kotse niyo kahit hindi mo siya in-authorize na ibenta
for 100,000 but worth 1,000,000 yung kotse. Dapat bang matuloy yung kontrata na
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pinasok ng katulong niyo? NO. HINDI KA REQUIRED RESPETUHIN YON DAHIL

THE CONTRACT IS UNENFORCEABLE. Valid yung contract but hindi ka required na
mag-comply dahil wala naman yung risk na ikaw ay mademanda. Dahil ang kausap nung
buyer ay yung katulong na hindi authorized magbenta.
● Difference of unenforceable and void-- pag void, walang bisa.
○ Ex. Yung katulong nabenta ng 1.5M yung kotse na worth 1M. Pwede pa rin kilalanin
nung owner yung contract of sale na ginawa ng katulong kahit hindi niya in-authorize.
■ Unenforceable - valid pero pwedeng kilalanin mo yung contract or hindi
Essential Requisites of a Contract

Art. 1318. There is no contract unless the following requisites concur: (mawala lang ang isa, void na
yung contract)
(1) Consent of the contracting parties;
(2) Object certain which is the subject matter of the contract;
(3) Cause of the obligation which is established.
● Aside from essential requisites, there are other elements such as:
○ NATURAL ELEMENTS -- mga bagay na kahit hindi stated sa contract ay deemed
included na siya
■ Ex. Warranty against eviction, warranty against hidden defects
○ ACCIDENTAL ELEMENTS -- mga bagay na kung hindi specifically nadagdag sa
kontrata ay hindi sila deemed included doon. Kung hindi napag-usapan, hindi malalagay
sa kontrata.
■ Ex. Meeting place, Where and when magkikita
SECTION 1. - Consent
Art. 1319. Consent is manifested by the meeting of the offer and the 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.
- First essential element -- consent o pagpayag, pagsang-ayon ng bawat isa
● Nag-alok ka sa kaibigan mo an bilhin na yun cellphone sa halagang 10,000. Para masabing
tinanggap o may consent na yung offer, kailangan specifically na sabihin niyang 10,000.
○ Pag tumawad siya, “Ang mahal naman 9,000 na lang.” Ang tawag sa 9,000 ay
counter-offer.
○ Kung sinabi niya naman na sige 10,000 pero 4 gives. Hindi considered as consent yon,
walang perfected contract.
■ This is also considered as a counter offer dahil pumayag ka nga sa 10,000 but
na-modify naman yung terms.
○ Pag gumawa na siya sa 10,000 at walang sinabi kung kailan babayaran. Ang presumption
is it is immediately demandable.
Acceptance made by letter or telegram does not bind the offerer except from the time it came to his
knowledge. The contract, in such a case, is presumed to have been entered into in the place where the
offer was made.
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- Kailan magkaroon ng perfected contract? Sa araw na nalaman nung nag-offer (seller) na

tinatanggap yung offer niya.
- COGNITION THEORY: Kung kelan lang nalaman nung nag-offer na tinatanggap na
nung kausap niya yung offer, that’s the only time na may perfected contract na.
Art. 1320. An acceptance may be express or implied.

● EXPRESS: could either be oral or written
○ Um-oo ka o nag-agree ka na okay na yung offer or terms sayo
● IMPLIED: not directly expressed
○ Pinapahiwatig mo na tinatanggap mo na yung offer
○ Walang salita, kinuha mo na agad yung cellphone at nagbayad ka ng 10,000.
Art. 1321. The person making the offer may fix the time, place, and manner of acceptance, all of which
must be complied with.
- lahat ng sinet ni seller na time, place, manner of accepting, etc. ay dapat din na sundin ni buyer
Art. 1322. An offer made through an agent is accepted from the time acceptance is communicated to him.
● Ex. Si seller uutusan si agent. Si agent ibebenta yung object kay buyer at mag-ooffer siya. Nung
November 3, pumayag na si buyer sa offer kay agent, pero November 7 pa nagkita si agent at si
seller.
○ Kailan matuturing na may perfected contract? November 3.
- Lumalabas na si agent ay extension ng personality ni seller.
Art. 1323. An offer becomes ineffective upon the death, civil interdiction, insanity, or insolvency of either
party before acceptance is conveyed.
● Ex. Si seller nagbebenta ng kotse kay buyer. November 2 gumawa ng offer si seller and pinadala
niya kay buyer. November 5 natanggap ni buyer yung offer. November 8 pinadala naman ni buyer
yung acceptance niya kay seller at natanggap ito ni seller nung November 10.
○ Kailan may perfected contract? From the time na nalaman ni offerer na tinatanggap na ni
offeree ang kanyang offer, November 10.
○ Possible na bago ma-complete yung buong cycle or time. Bago malaman ni seller na
tinatanggap na ni buyer yung offer ay may nangyaring isa sa na-mention (death, civil
interdiction, insanity or insolvency), nagiging ineffective yung offer.
○ What if habang on the way na yung acceptance letter, on November 9 namatay si buyer?
Buhay pa siya nung ginawa niya yung acceptance but bago pa malaman ni seller ay
namatay na si buyer. Tuloy ba yung contract of sale kung na-sent out na yung letter of
acceptance bago siya mamatay pero bago matanggap ni seller ay namatay si buyer?
■ Meron bang perfected contract? WALA. Nung nabasa na ni seller na tinatanggap
na yung offer, supposedly magkakaroon na ng perfected contract. But paano pa
magkaroon ng perfected contract kung yung other contracting party ay patay na;
sa isang kontrata dapat at least mayroong two parties.
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Art. 1324. When the offerer has allowed the offeree a certain period to accept, the offer may be
withdrawn at any time before acceptance by communicating such withdrawal, except when the option is
founded upon a consideration, as something paid or promised.
● Ex. Bibili ka ng cellphone worth 10,000 but gusto mo muna mag-research about it. Sabi nung
seller last unit na raw yon and mabilis maubos. Sa takot mong maubusan, nag-iwan ka ng
OPTION MONEY na 500 pesos. Hindi ito proof na bibilhin mo na yung cellphone. Pag
nag-iwan ka ng option money, dapat bigyan ka ni seller ng Option Period (3 days). Bibigyan ka
ng chance na mag-isip kung bibilhin mo ba yung cellphone. Dahil may option money kang
iniwan hindi pwedeng ibenta ni seller yung phone sa iba, parang naka-reserve pansamantala kay
buyer yung unit for the 3 day period. Kung ibinenta ito ni seller, magiging liable siya for damages
(violation ng option contract.)
○ Paano kung after 3 days, hindi mo pala gustong unit cellphone. Mababawi mo pa ba kay
seller yung option money? HINDI MO NA ITO PWEDENG MABAWI. Dahil it serves
as a payment for the 3 days period na hindi binenta sa iba.
○ After 3 days, nagdecide ka nang gusto mo yung cellphone. Magkano na lang ang dapat
mong bayaran? 10,000 pa dahil yung 500 na option money ay hindi nakakabawas sa
purchase price.
● Ex. Gustong-gusto mo na yung cellphone pero hindi pa sapat yung pera mo. Pwede ka mag-iwan
ng EARNEST MONEY, 500 pesos na magsisilbing parang reservation fee or down payment.
○ Sa araw na kukunin mo na yung phone, magkano na lang ang kailangan mong ibigay?
9,500 na lang. Earnest Money is considered to be a deduction in the selling price.
Art. 1325. Unless it appears otherwise, business advertisements of things for sale are not definite offers,
but mere invitations to make an offer.
Art. 1326. Advertisements for bidders are simply invitations to make proposals, and the advertiser is not
bound to accept the highest or lowest bidder, unless the contrary appears.
- Hindi required na tanggap na yung bid dahil hindi pa naman finalized yung transactions.
Art. 1327. The following cannot give consent to a contract:

(1) Unemancipated minors;
(2) Insane or demented persons, and deaf-mutes who do not know how to write.
● Minors: Legal age is 18 years old
○ Ang mga 17 and below ay wala pang kakayahan na magbigay ng consent sa isang
contract.
● Insane or demented: Hindi sila makakapagbigay ng consent dahil hindi sila makakapag-decide ng
tama.
Ano ang nature ng contract na pinapasok ng minors, insane or demented persons…? VOIDABLE. (Valid
contracts but later on ay pwedeng ipa-cancel sa korte -- Valid until annuled)
Art. 1328. Contracts entered into during a lucid interval are valid. Contracts agreed to in a state of
drunkenness or during a hypnotic spell are voidable.
● Lucid interval: instances na nasa tamang pag-iisip ang isang baliw
○ Pag naka-transact mo siya habang nasa lucid interval, yung kontrata niyo ay valid.
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Art. 1329. The incapacity declared in Article 1327 is subject to the modifications determined by law, and
is understood to be without prejudice to special disqualifications established in the laws.
Art. 1330. A contract where consent is given through mistake, violence, intimidation, undue influence, or
fraud is voidable.
- In any instances, na ang pag-accept mo sa isang kontrata ay nakuha lang dahil niloko ka o
nagkaroon ng pagkakamali, sakitan, etc. yung kontrata na yon ay voidable
Art. 1331. In order that mistake may invalidate consent, it should refer to the substance of the thing which
is the object of the contract, or to those conditions which have principally moved one or both parties to
enter into the contract.
Mistake as to the identity or qualifications of one of the parties will vitiate consent only when such
identity or qualifications have been the principal cause of the contract.
A simple mistake of account shall give rise to its correction.
● Ex. Namali ka sa pagbili ng product dahil akala mo pwedeng yung product na yon sa gamit mo.
Pwede itong i-consider na maging voidable, mapawalang bisa yung kontrata at magbabalikan
kayo ng bayad, pero kailangan i-prove na namali talaga and not just because of carelessness.
Art. 1332. When one of the parties is unable to read, or if the contract is in a language not understood by
him, and mistake or fraud is alleged, the person enforcing the contract must show that the terms thereof
have been fully explained to the former.
- For the protection of people na illiterate, para hindi sila maabuso. Kung sino man ang nagsabi na
nagkaroon ng pagkakamali o panloloko sa kontrata o kung sino man ay may gustong maituloy
ang kontrata, siya rin ang dapat magpatunay na naipaliwanag sa kabilang contracting party yung
terms ng kontrata.
Art. 1333. There is no mistake if the party alleging it knew the doubt, contingency or risk affecting the
object of the contract.
Art. 1334. Mutual error as to the legal effect of an agreement when the real purpose of the parties is
frustrated, may vitiate consent.
- Parehong contracting parties are nagkamali sa pagkakaintindi sa subject matter ng kontrata,
maaari itong makaapekto sa kanilang kakayahan na magbigay ng consent sa kontrata.
Art. 1335. There is violence when in order to wrest consent, serious or irresistible force is employed.
- Ginamitan mo ng dahas yung contracting party para pumayag sa kontrata
There is intimidation when one of the contracting parties is compelled by a reasonable and well-grounded
fear of an imminent and grave evil upon his person or property, or upon the person or property of his
spouse, descendants or ascendants, to give his consent.
To determine the degree of intimidation, the age, sex and condition of the person shall be borne in mind.
- Intimidation: there is a reasonable or well grounded fear. May takot na pwedeng may masamang
mangyari sa kanya o sa kanyang pamilya
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A threat to enforce one's claim through competent authority, if the claim is just or legal, does not vitiate
consent.
● Ex. Pag hindi mo pinirmahan yan, i-demande kita sa korte dahil hindi mo pa binabayaran yung
utang mo. Hindi ito pananakot dahil kung hindi ka naman talaga magbabayad ng utang mo ay
pwede kang kasuhan.
○ Ang pananakot na tinutukoy sa batas ay yung pananakot na ginagawa upang
makapanlamang sa kapwa.
Art. 1336. Violence or intimidation shall annul the obligation, although it may have been employed by a
third person who did not take part in the contract.
- Maaring yung pananakot o pananakit ay ginagawa ng ibang tao para sa isang contracting party.
~~~ enough reason na ito para i-annul ang kontrata
Art. 1337. There is undue influence when a person takes improper advantage of his power over the will
of another, depriving the latter of a reasonable freedom of choice. The following circumstances shall be
considered: the confidential, family, spiritual and other relations between the parties, or the fact that the
person alleged to have been unduly influenced was suffering from mental weakness, or was ignorant or in
financial distress.
● Ex. Para sa isang estudyante, kinakatakutan niya yung teacher. May undue influence kapag
ginamit ng teacher yung power niya o yung pagiging teacher niya para mapapayag ka sa isang
gawain. Hindi ka niya tinakot pero alam mong kapag napikon siya, mababawian ka niya in other
ways kaya kahit mabigat sa loob mo, papayag ka na lang sa gusto niya.
● Ex. Sinasabihan ka ng pari sa inyong simbahan na magdonate ka kundi ay mapupunta ka sa
imyerno. Kaya napipilitan kang pumasok sa isang contract of donation. Your consent is
considered to be vitiated. Pwede kang magrequest na mapawalang bisa ang contract dahil may
undue influence yung taong iyon sayo.
Art. 1338. There is fraud when, through insidious words or machinations of one of the contracting
parties, the other is induced to enter into a contract which, without them, he would not have agreed to.
● DOLO CAUSANTE (Causal Fraud) – Fraud employed at the time of the execution of a contract
in order to secure consent, remedy is annulment because of vitiation of consent.
○ sa pamamagitan ng insidious words or machinations ay napapapasok ka sa isang kontrata
○ Ex. Bibili ka ng alak pero binigyan ka ng suka
Art. 1339. Failure to disclose facts, when there is a duty to reveal them, as when the parties are bound by
confidential relations, constitutes fraud.
Art. 1340. The usual exaggerations in trade, when the other party had an opportunity to know the facts,
are not in themselves fraudulent.
● Ex. Pagbibili ka ng prutas, “Manong matamis ba yung prutas.” Laging sasabihin ng tindero na
matamis yung tinitinda niya. What if later on mayroon sa nabili mo na hindi matamis, pwede mo
bang sabihin na niloko ka nung tindero? NO. Dahil wala namang way yung tindero para malaman
niya kung matamis ang bawat isang prutas. Yung sinabi niyang matamis yung prutas, can be a
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form of usual exaggerations. Dapat alam na rin ng isang buyer na kumilatis kung ang bibilhin
niya matamis o hindi.
Art. 1341. A mere expression of an opinion does not signify fraud, unless made by an expert and the
other party has relied on the former's special knowledge.
● Ex. Niregaluhan ng singsing yung katulong niyo at sa tingin niya diamond ito. Binili mo at
pinatingin mo sa isang expert at nalamang hindi diamond. Can that be considered as fraud? NO.
Mere expression of an opinion lang ng katulong niya na diamond ito, pwede ring mistake lang
dahil wala naman siyang enough technical knowledge.
○ Except kung yung mismong expert ang nagsabi na 24K yung alahas pero hindi naman
pala, that is considered to be fraud dahil he is an expert.
Art. 1342. Misrepresentation by a third person does not vitiate consent, unless such misrepresentation has
created substantial mistakes and the same is mutual.
Art. 1343. Misrepresentation made in good faith is not fraudulent but may constitute error.
● In good faith naman sinabi nung katulong na sa tingin niya na diamond ito, it is not fraud may be
a mistake.
Art. 1344. In order that fraud may make a contract voidable, it should be serious and should not have
been employed by both contracting parties.
Incidental fraud only obliges the person employing it to pay damages.
● DOLO INCIDENTE - committed in the performance of pre-existing obligation, remedy is
damages.
Art. 1345. Simulation of a contract may be absolute or relative. The former takes place when the parties
do not intend to be bound at all; the latter, when the parties conceal their true agreement.
● Ex. Alam mo na yung pinagkakautangan mo ay maghahabol na sayo, para makabayad ay
hihilahin niya yung kotse mo. Para matago mo yung kotse pumasok ka isang kunyaring kontra
(abosolutely simulated contract with another person), void yung kontrata na yon.
○ ABSOLUTELY SIMULATED - parties intend that the contract will impose no
obligations
■ Wala talaga silang balak pumasok sa isang kontrata
● RELATIVE SIMULATION - parties conceal their true agreement
○ Ilalagay nilang contract of donation pero ang totoo contract of sale
○ May intention talaga na pumasok sa isang kontrata ngunit hindi nila nilalagay ang true
agreement
Art. 1346. An absolutely simulated or fictitious contract is void. A relative simulation, when it does not
prejudice a third person and is not intended for any purpose contrary to law, morals, good customs, public
order or public policy binds the parties to their real agreement.
● Ex. If deed of donation talaga kahit nakalagay contract of sale, magiging bound sila sa contract of
donation
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SECTION 2. Object of Contracts

Art. 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 intransmissible may also be the object of contracts.
No contract may be entered into upon future inheritance except in cases expressly authorized by law.
● Lahat ng mga bagay na hindi “outside the commerce of men” -- mga bagay na pwede natin
ibenta, kahit yung mga future things such as yung mga aanihin mong palay, gulay,etc., kahit hindi
pa siya tutubo pwede siyang maging object ng kontrata
● Kapag transmissible ang isang karapatan, it may also be the object of a contract
○ Ex. being a stockholder - pwede mong ibenta sa ibang tao yung shares of stock mo
● Intramissible rights - mga karapatan na hindi pwedeng ilipat basta basta
○ Ex. Karapatan na humawak ng isang posisyon sa gobyerno - hindi mo pwedeng ibenta
dahil ang right to hold office ay isang intransmissible right. (need i-elect ng mga tao para
magkaroon ng posisyon hindi pwedeng binili mo lang o pinasa sayo)
● Ex. Kapag hindi pa namamatay yung lolo mo, hndi mo pa muna pwedeng ibenta yung mga
namana mo dahil kailangan mamatay muna siya bago mapunta sayo yung mga bagay -- hindi
pwedeng maging object ng kontrata dahil future inheritance pa lang, hindi mo pa namamana yung
mga bagay
All services which are not contrary to law, morals, good customs, public order or public policy may
likewise be the object of a contract.
● Ex. Pagtuturo - pwedeng maging object of a contract basta walang mali sa ginagawa
● Ex. Prostitution - contrary to morals, bawal magging object of contract
Art. 1348. Impossible things or services cannot be the object of contracts.

● Ex. Bentahan mo ako ng dinosaur, unicorn --- cannot be the object of contract, impossible
mangyari
Art. 1349. The object of every contract must be determinate as to its kind. The fact that the quantity is not
determinate shall not be an obstacle to the existence of the contract, provided it is possible to determine
the same, without the need of a new contract between the parties.
- Mga determinate object lang ang pwede maging object ng kontrata
SECTION 3. - Cause of Contracts
Art. 1350. In onerous contracts the cause is understood to be, for each contracting party, the prestation or
promise of a thing or service by the other; in remuneratory ones, the service or benefit which is
remunerated; and in contracts of pure beneficence, the mere liberality of the benefactor.
● ONEROUS CONTRACTS - may kailangan kang ibigay para makuha mo yung gusto mo
○ Ex. Contract of sale - para mabili mo yung pagkain kailangan mabawasan ka ng cash.
Ang rason ni seller kaya siya nagbebenta ay para magkaroon ng cash, si buyer naman ay
para magkaroon ng pagkain ~~~ ito yung cause of contract nila
○ Ex. Contract of pure beneficence (donation) - ang cause ay yung kabuting loob ng
benefactor
Art. 1351. The particular motives of the parties in entering into a contract are different from the cause
thereof.
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● CAUSE - essential reason of the contract

● MOTIVE - private or secret reason of a contracting party
● Ex. bentahan ng baril - para sa nagtitinda ang cause niya ay para magkapera and para kay buyer
ang cause niya ay para magkaroon ng baril. But ang motive pala ni seller, nagbebenta siya para
magkaroon ng pera pambili ng shabu and ang motive para ni buyer bumili siya ng baril para
patayin ang karibal niya.
○ Valid yung cause but masama pala yung motive
○ Is the contract of sale valid or void? THE CONTRACT IS VALID. Ang tinitignan lang
ang cause and hindi tumitingin sa motive.
● Ex. bentahan ng marijuana - cause ni seller ay para magkapera and si buyer ang cause niya ay
para magkaroon nung subject matter. But ang motive pala ni seller ay para magkaroon ng pera
upang makatulong sa mahihirap and ang motive ni buyer ay bumili ng marijuana para sa
pagpapagamot ng nanay niya.
○ Hindi maganda yung cause but mabuti yung motive. VOID YUNG CAUSE dahil bawal
magbentahan ng droga.
○ Is the contract of sale valid or void? THE CONTRACT OF SALE IS VOID. Ang
tinitignan ay yung cause ng contract. (The end doesn't justify the means)
Art. 1352. Contracts without cause, or with unlawful cause, produce no effect whatever. The cause is
unlawful if it is contrary to law, morals, good customs, public order or public policy.
Art. 1353. The statement of a false cause in contracts shall render them void, if it should not be proved
that they were founded upon another cause which is true and lawful.
- Kapag isa sa mga essential elements ng isang contract ay wala, magiging void ang contact
Art. 1354. Although the cause is not stated in the contract, it is presumed that it exists and is lawful,
unless the debtor proves the contrary.
- Sa contract of sale, hindi na kailangan sabihin yung cause dahil it is presumed that it exists and is
lawful (para magkapera at magkaroon ng subject matter)
Art. 1355. Except in cases specified by law, lesion or inadequacy of cause shall not invalidate a contract,
unless there has been fraud, mistake or undue influence.
● LESION - pagkalugi, kulang. Hindi porket nalugi ka sa isang kontrata ay enough reason na yon
para ma-invalidate ang contract, unless niloko ka, may pagkakamali or undue influence.
FORM OF CONTRACTS
Art. 1356. Contracts shall be obligatory, in whatever form they may have been entered into, provided all
the essential requisites for their validity are present. However, when the law requires that a contract be in
some form in order that it may be valid or enforceable, or that a contract be proved in a certain way, that
requirement is absolute and indispensable. In such cases, the right of the parties stated in the following
article cannot be exercised.
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- May bisa o obligatory ang isang kontrata, in whatever form they may have been interred into,
kahit oral or written, as long as all essential requisites for their validity are present. (case to case
basis)
- May mga certain contract na dapat in writing in order to be valid
Contracts that should be in writing for its validity:

1. Donation of immovable property must be in a public instrument (together with acceptance)
● Immovable property: bahay, lupa, building. Kapag dinonate mo ang mga ito sa ibang tao, yung
contract of donation dapat in a public instrument
● Two kinds of document/ instrument: parehong papel
○ PRIVATE INSTRUMENT - yung contract na-print mo at nagkapirmahan agad kayo ng
kausap mo
○ PUBLIC INSTRUMENT - yung private instrument para maging public instrument,
pinapatatakan siya sa notary public (notaryo publiko)
■ Notaryo publiko: isang lawyer, parang representative ng korte na nagpapatunay
na kayong dalawa, buyer at seller, ay pumasok sa kontrata na iyon. Pwedeng don
kayo magpirmahan sa harap niya at para ipakita na bukal sa loob ang pagpasok
niyong dalawa sa kontrata.
● Minsan ginagamit rin ang pagkakataon na ito para ma-prove na pareho
pa kayong buhay, buyer at seller, noong nagkapirmahan ng kontrata.
● Minsan may mga seller na patay na pero nakakapirma pa, pinepeke ang
pirma ni seller. Ngunit hindi ito mangyayari kung and contract of sale
niyo ay may tatak. Hindi ito tatatakan kung hindi kayo parehong
nakaharap sa notary public. Kung sakali man na nagkaroon ng gulo o
problema sa kontrata, ang tatawaging testigo ng korte ay yung notary
public.
- Parehong valid ang public and private instrument, pero mas okay na gumamit ng public
instrument dahil notaryado ito at may witness nung kayo ay nagpirmahan. Ngunit hindi naman
lahat ng kontrata ay kailangan na notaryado para maging valid.
- Ex. Hindi ka pwedeng mag-donate ng lupa na orally at kung written hindi pwedeng
kayong dalawa (contracting parties) lang ang nakapirma dahil void yon. Dapat may tatak
ng notary public at yung acceptance ay dapat notarized din.
2. Donation of personal property whose value exceeds P5,000 must be in writing

● Personal property- libro, cellphone, kotse, sapatos
○ If the value exceed 5,000 dapat in writing na siya
● Must be in writing- pwedeng private or public instrument
● Ex. May nililigawan ka at niregaluhan mo siya ng cellphone na halagang P20,000, Pag niregalo
mo sa kanya yung cellphone, it is considered as a donation. Para maging valid ang ginawa mong
pagbibigay (para malipat yung ownership ng cellphone sa kanya), the contract of donation must
be in writing dahil lagpas 5,000 na ang value.
○ Kung hindi mo ginawang in writing at lagpas 5,000 ang value, the donation is void.
Kapag orally mo lang binigay, hindi ito nakasunod sa formality requirement ng batas ----
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hindi siya valid, void siya, walang bisa yung ginawa mong panreregalo. Hindi lumipat
yung ownership sa kanya, therefore pwede mong bawiin lahat ng regalo mo.
3. Authority of an agent to sell a piece of land must be in writing

● Pwedeng private or public writing
4. Contract of partnership with immovable property contributed must be in a public instrument

● Pag nag-invest ang isang partner ng immovable property (building), the contract of partnership
must be in public instrument -- notarized
5. A stipulation to pay interest
● Kung oral niyo lang napag-usapan na may interest, that stipulation is void.
Art. 1357. If the law requires a document or other special form, as in the acts and contracts enumerated in
the following article, the contracting parties may compel each other to observe that form, once the
contract has been perfected. This right may be exercised simultaneously with the action upon the contract.
Art. 1358. The following must appear in a public document: (dapat ang mga sumusunod ay notaryado)
(1) Acts and contracts which have for their object the creation, transmission, modification or
extinguishment of real rights over immovable property; sales of real property or of an interest therein a
governed by Articles 1403, No. 2, and 1405;
- Sale of real property must be in a public document
(2) The cession, repudiation or renunciation of hereditary rights or of those of the conjugal partnership of
gains;
- Mga imamana
(3) The power to administer property, or any other power which has for its object an act appearing or
which should appear in a public document, or should prejudice a third person;
(4) The cession of actions or rights proceeding from an act appearing in a public document.
- Giving up of properties
All other contracts where the amount involved exceeds five hundred pesos must appear in writing, even
a private one. But sales of goods, chattels or things in action are governed by Articles, 1403, No. 2 and
1405.
REFORMATION OF INSTRUMENTS
Art. 1359. When, there having been a meeting of the minds of the parties to a contract, their true intention
is not expressed in the instrument purporting to embody the agreement, by reason of mistake, fraud,
inequitable conduct or accident, one of the parties may ask for the reformation of the instrument to the
end that such true intention may be expressed.
If mistake, fraud, inequitable conduct, or accident has prevented a meeting of the minds of the parties, the
proper remedy is not reformation of the instrument but annulment of the contract.
● Ex. Buyer and seller - parehong napag-usapan niyo ay contract of sale, pero nung nagawa na
yung kontrata, contract of donation ang nailagay. I-rreform ang contract dahil hindi niya
nasalamin ang tunay na intention ng contracting parties.
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○ May meeting of the minds sa both parties (walang problema sa meeting of the minds),
pero sa papel lang nagkaproblema. Ang remedy is reformation para ayusin yung
instrument
○ But kung may mistake, fraud, inequitable conduct or accident -- akala nung isa contract
of sale, habang yung isa contract of donation. Hindi reformation ang remedy but rather
i-cancel ang contract dahil may problema sa meeting of the minds.
Art. 1360. The principles of the general law on the reformation of instruments are hereby adopted insofar
as they are not in conflict with the provisions of this Code.
Art. 1361. When a mutual mistake of the parties causes the failure of the instrument to disclose their real
agreement, said instrument may be reformed.
Art. 1362. If one party was mistaken and the other acted fraudulently or inequitably in such a way that the
instrument does not show their true intention, the former may ask for the reformation of the instrument.
Art. 1363. When one party was mistaken and the other knew or believed that the instrument did not state
their real agreement, but concealed that fact from the former, the instrument may be reformed.
Art. 1364. When through the ignorance, lack of skill, negligence or bad faith on the part of the person
drafting the instrument or of the clerk or typist, the instrument does not express the true intention of the
parties, the courts may order that the instrument be reformed.
● Typographical error: i-rreform lang yung instrument
Art. 1365. If two parties agree upon the mortgage or pledge of real or personal property, but the
instrument states that the property is sold absolutely or with a right of repurchase, reformation of the
instrument is proper.
Art. 1366. There shall be no reformation in the following cases:

(1) Simple donations inter vivos wherein no condition is imposed;
- Transfer or gift made during one’s lifetime
(2) Wills;
- Last will and testament
(3) When the real agreement is void.
- Hindi na pwedeng maisalba ang maling instrument kapag void ang agreement.
Art. 1367. When one of the parties has brought an action to enforce the instrument, he cannot
subsequently ask for its reformation.
- Sa reformation sinasabi mong mali ang nakasulat sa kontrata, hindi ka na pwedeng mag-invoke
na mali ang nakasulat doon kung dati ay nakapag-file ka na ng action to inforce, para matuloy ang
kontrata. Bakit magsasabi ulit na mali ang nakalagy kung bago pa man ay na-inforce mo na.
(Estopped ka na hindi mo na pwedeng bawiin yung pag-inforce dati)
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Art. 1368. Reformation may be ordered at the instance of either party or his successors in interest, if the
mistake was mutual; otherwise, upon petition of the injured party, or his heirs and assigns.
Art. 1369. The procedure for the reformation of instrument shall be governed by rules of court to be
promulgated by the Supreme Court.
INTERPRETATION OF CONTRACTS
Art. 1370. If the terms of a contract are clear and leave no doubt upon the intention of the contracting
parties, the literal meaning of its stipulations shall control.
If the words appear to be contrary to the evident intention of the parties, the latter shall prevail over the
former.
- If the words appear to the contrary, yung intention ng parties ang mag-prevail
Art. 1371. In order to judge the intention of the contracting parties, their contemporaneous and
subsequent acts shall be principally considered.
- Kung ang gusto talaga nila ay contract of sale, tignan kung nagpalitan ba ng subject matter at
pera, dito makikita kung anong contract ba talaga ang pinasok nila.
Module 5
Defective contracts - contracts that are not perfectly valid
Order of Defective Contracts (least defective to most defective):
- Valid Contracts yung perfected
1. Rescissible Contracts
2. Voidable Contracts
3. Unenforceable Contracts
4. Void Contracts
Rescissible Contracts
Art. 1380. Contracts validly agreed upon may be rescinded in the cases established by law.
● Rescind - to revoke, cancel or repeal
○ Rescissible contracts are valid and enforceable, although subject to rescission by the court
when there is economic damage or prejudice to one of the parties.
■ Economic damage or prejudice: lesion or pagkalugi. Dapat material enough ang
pagkalugi para i-rescind ang isang kontract
○ Rescission is a remedy granted by law to the contracting parties in order to secure
reparation of damages caused by them in a valid contract by means of restoration of
things to their condition, in which they were prior to the celebration of the contract.
■ Babalik sila sa kung ano sitwasyon nila bago pasukin ang kontrata.
Requisites of rescission: (Lahat ng requisite ay dapat masunod bago ka makapag-rescind ng kontrata)

1. The contract must be validly agreed upon. -- Dapat walang vice of consent
2. There must be lesion or pecuniary prejudice
3. Rescission must be based on a case especially provided by law
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4. There is no other legal remedy to obtain the reparation.
The party asking for rescission must be able to return what he is obliged to restore and it must not be
legally in the possession of third persons who did not act in bad faith and the period for filing the action
must be not prescribed yet.
Art. 1381. The following contracts are rescissible:

(1) Those which are entered into by guardians whenever the wards whom they represent suffer lesion by
more than one-fourth of the value of the things which are the object thereof;
- Wards: minors
- Guardians: parents or other people na in-appoint ng korte para maging bantay
● Rescissible ang isang kontrata na pinasok ng isang guardian regarding sa property ng kanyang
ward. (Ang may-ari ng property ay si ward pero dahil hindi niya pa kayang magdesisyon para sa
sarili niya, ang nakapag-transact para sa kanya ay ang kanyang guardian)
○ Ex. Si Sarah ay may kotse na nagkakahalaga ng ₱1,000,000. Samantalang binenta ito ni Ms.
Minchin ng ₱800,000. Ibig sabihin lugi si Sarah, ang tawag ng batas sa pagkalugi ay lesion.
■ Ano ang status ng contract na pinasok ni Ms. Minchin with the third person involving the
property of Sarah?
● THE CONTRACT IS PERFECTLY VALID. Hindi porket nalugi ka sa isang
transaction ay magiging void na yung contract. Walang masama kung may lesion,
basta hindi ito sobra-sobra.
● Sobra sobra ang lesion kung --- When they suffer lesion by more than one-fourth of the value of the
things that are the subject.
○ What if naibenta ito ni Ms. Minchin ng ₱750,000, ano ang status ng contract?
■ THE CONTRACT IS PERFECTED VALID. One-fourth na yung lesion but it is
stated na dapat by more than one-fourth of the value.
○ What if naibenta ito ni Ms. Minchin ng ₱740,000, ano ang status ng contract?
■ THE CONTRACT WILL BE A RESCISSIBLE CONTRACT. The lesion is more
than one-fourth of the value.
■ Pinapayagan ito ng batas dahil si Sarah ang may-ari ng kotseng naibenta pero hindi
siya ang nakapag-decide kung itutuloy ba ng contract o hindi. At nalugi siya ng
material yung amount -- more than one-fourth of the value.
● Later on, pag-narealize ni Sarah na mali ang nangyari, mabibigyan siya ng
pagkakataon na ipa-rescind o ipa-set aside o i-cancel ang kontrata na pinasok
ni Ms. Minchin para sa kanya. In a way, matatama ito ang maling ginawa ni
Ms. Minchin nung bata pa si Sarah.
(2) Those agreed upon in representation of absentees, if the latter suffer the lesion stated in the preceding
number;
- Absentee: taong biglang nawala sa lugar nila at dahil doon may mga properties siya na hindi na
maalagaan. Nag-aappoint din ang korte kung sino ang magiging administrator ng mga kanyang
ari-arian.
● Sa panahon na wala siya, pwedeng mapilitan ang administrator na i-dispose o ibenta yung
ibang property. Dahil kung hindi ito dinipose, mas lalo ito masasayang.
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● Pag bumalik si absentee, maari siyang mag-request for rescission at ma-cancel yung mga
kontrata na pinasok ng kanyang tagabantay.
(3) Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims
due them;
● Accion pauliana-- remedy ng creditor (ex. Pumasok ang debtor sa isang simulated contract para
maitago ang kanilang property.) Bilang isang creditor, pwede mong ipa-rescind ang kontrata na
pinasok nila.
(4) Those which refer to things under litigation if they have been entered into by the defendant without
the knowledge and approval of the litigants or of competent judicial authority;
● Nagbenta ng isang property na pinag-aawayan pa pala sa korte at hindi man lang pinaalam sa
korte o sa mga litigants. Later on, pwedeng ipa-cancel ang kontrata dahil kawawa naman yung
mananalo sa kaso kung wala na yung property.
(5) All other contracts specially declared by law to be subject to rescission.
Art. 1382. Payments made in a state of insolvency for obligations to whose fulfillment the debtor could
not be compelled at the time they were effected, are also rescissible.
- Insolvent: mas marami na ang liability kaysa sa assets
● Ang isang tao na insolvent ay bigla nagbayad ng utang during the time na hindi pa siya required
magbayad, ibig sabihin hindi pa due ang utang. Yung ginawa niyang pagbabayad is
RESCISSIBLE.
○ Ang tingin ng batas dito ay namimili yung debtor kung sinong creditor ang babayaran
nila, which is unfair. Kapag may utang sila na due na, yung available cash nila ay dapat
ibayad sa mga creditors na nagpa-utang na due na. Huwag yung uunahin nilang bayaran
yung mga utang na hindi pa matured.
○ Walang problema kung hindi ka insolvent. But kung insolvent ka, limited na yung funds
mo kaya dapat yung funds mo ibayad mo sa mga utang na due or matured na. Kapag
nagbayad ka sa hindi pa due, yung ginawa mong pagbabayad ay RESCISSIBLE.
Art. 1383. The action for rescission is subsidiary; it cannot be instituted except when the party suffering
damage has no other legal means to obtain reparation for the same.
- If may other means para mabawi mo ang pagkalugi, hindi ito agad rescission or cancellation ng
contract.
● Ex. Kung nalugi ka ng ₱250,000 at kung kaya pa maibalik ang pagkalugi, ibalik muna. -- primary
remedy.
○ But kung hindi na maibabalik, it is subject to rescission. -- subsidiary or pangalawang
remedy
Art. 1384. Rescission shall be only to the extent necessary to cover the damages caused.
- Not necessarily yung buong value but only to the extent of the lesion.
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Art. 1385. Rescission creates the obligation to return the things which were the object of the contract,
together with their fruits, and the price with its interest; consequently, it can be carried out only when he
who demands rescission can return whatever he may be obliged to restore.
- The only time na pwede kang makahingi ng rescission na balikan, if ikaw mismo kaya mo rin
ibalik yung binigay dati sayo.
Neither shall rescission take place when the things which are the object of the contract are legally in the
possession of third persons who did not act in bad faith.
In this case, indemnity for damages may be demanded from the person causing the loss.
- If in good faith ang third person, hindi na pwedeng mabawi sa kanya.
Art. 1386. Rescission referred to in Nos. 1 and 2 of Article 1381 shall not take place with respect to
contracts approved by the courts.
- Regarding sa guardians and absentees: Kung aprubado naman ng korte, hindi ito pwedeng
ma-rescind.
Art. 1387. All contracts by virtue of which the debtor alienates property by gratuitous title are presumed
to have been entered into in fraud of creditors, when the donor did not reserve sufficient property to pay
all debts contracted before the donation.
● Kapag ang isang debtor na may utang sa isang creditor, ay hindi na nga sapat ang kanyang mga
ari-arian at nag-donate pa ng kanyang property sa iba. --- this is a sign that the donation was done
in fraud of creditors.
○ Kung ikaw ay baon sa utang, gamitin mo muna yung property mo para bayaran yung mga
utang. Wag mong i-donate sa iba dahil baon ka pa sa utang. Kapag nag-donate ka, it is
considered na panloloko sa creditors mo. --fraudulent
Alienations by onerous title are also presumed fraudulent when made by persons against whom some
judgment has been issued. The decision or attachment need not refer to the property alienated, and need
not have been obtained by the party seeking the rescission.
● Alam mong hihilahin na yung property but binenta mo pa sa iba. Yung ginawa mo ay
FRAUDULENT.
In addition to these presumptions, the design to defraud creditors may be proved in any other manner
recognized by the law of evidence.
Art. 1388. Whoever acquires in bad faith the things alienated in fraud of creditors, shall indemnify the
latter for damages suffered by them on account of the alienation, whenever, due to any cause, it should be
impossible for him to return them.
If there are two or more alienations, the first acquirer shall be liable first, and so on successively.
- Liable ang bumili dahil he acquired them in bad faith.
- Wag makisama sa mga debtor na gusto manloko ng creditors, dahil ikaw mismo na buyer at alam
mo yung sitwasyon (pumasok sa sale para makapangloko ng creditor), liable ka mismo sa creditor
dahil sa fraduelent act na ginawa niyo.
Art. 1389. The action to claim rescission must be commenced within four years.
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- Kung gusto mo magpa-rescind ng contract, kailangan mo itong gawin within four years.
For persons under guardianship and for absentees, the period of four years shall not begin until the
termination of the former's incapacity, or until the domicile of the latter is known.
● Kung nung time na binenta ni Ms. Minchin yung kotse ng palugi (lesion is more than one-fourth)
ay 7 years old pa lang si Sarah, hanggang ilang taon si Sarah para mapa-rescind niya ang
contract?
○ Four years from the time na nawala yung incapacity ni Sarah. Hanggang hindi pa 18 years
old si Sarah, wala pa siyang kakakayahan na mag-decide sa sarili niya at mag-file ng
rescission. Tatakbo lang yung four-year period from the time na 18 years old na siya.
Hanggang siya ay mag 22, yon ang four-year period para icontest niya at iparescind niya ang
contract.
○ Tatakbo lang ang four-year period to rescind from the time na makabalik ang absentee (from
the time the domicile of the absentee is known.)
■ Ex. 10 years siya nawala at after 10 years tyaka lang siya bumalik, doon lang tatakbo
yung period niya to rescind the contract entered into ng administrator ng kanyang
property. Hindi tatakbo yung four-year period from the time na nawala siya, but
mag-start ito from the time na nakabalik siya at alam kung saan siya nakatira.
● THE ACTION TO CLAIM RESCISSION MUST BE COMMENCED WITHIN FOUR YEARS.
After non, nag-prescribe na ang karapatan mo to contest.
● Pag hindi ka nag-contest within four years, ibig sabihin okay lang sayo ang nangyaring pagkalugi
mo o ang ginawang pagbebenta.
● RESCISSIBLE CONTRACTS ARE VALID but may window of time ka (four-year period) to
contest.
● Prescriptive period within four years from the time na nangyari yung rescissible contract.
○ For guardianship: from the time na ma-termination yung incapacity ni ward
○ For absentees: from the time na malaman yung domicile ni absentee
VOIDABLE CONTRACTS
Voidable: valid until annulled
Art. 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 consent to a contract.
- Ex. Pumasok ka in a contract with a minor or incapacitated person
- Ito ay para maprotektahan ang mga menor de edad sa mga transactions that may seem
unfavorable to them. Pwedeng ipa-cancel or ipa-annul ng mga magulang or guardian later on.
● Ex. Yung pagbili mo noong bata ka sa tindahan. Ikaw bata pa samantalang yung tindera ay
matanda na. What is the status of the contract?
○ THE CONTRACT IS VOIDABLE / ANNULLABLE. Valid until annulled.
○ Pero pina-annul ba ng nanay ko yung mga contract of sale na pinasukan ko nung bata
ako? No dahil hindi naman nagtake advantage yung tindahan sa akin o hindi naman tayo
naagrabyado,
● Ex. Binili ng isang tao yung cellphone mo nung bata ka na worth ₱20,000 sa halagang ₱1. Tinake
advantage ng tao na yon yung kamusmusan mo kaya later on, pwede ito ipa-annul
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(2) Those where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud.
- Kapag niloko, sinaktan, tinakot o na-influence ka para makuha ang consent mo. The contract is
voidable.
These contracts are binding, unless they are annulled by a proper action in court. They are susceptible to
ratification.
- Ratification: kabaliktaran ng annulment. Sa annulment, pinapa-cancel. Sa ratification,
pinapa-cleanse mo yung contract sa kung anoman ang defect niya.
- Kung pinatawad nila yung pagkakamali, panloloko, pananakot na ginawa sa kanila,
pwede nilang ipa-ratify ang kontrata.
- Yung dating voidable ay mananatiling VALID CONTRACT. Hindi na ito
pwedeng i-cancel or i-annul.
Art. 1391. The action for annulment shall be brought within four years.
This period shall begin:
- In cases of intimidation, violence or undue influence, from the time the defect of the consent
ceases.
● Hindi from the time nasimula kang saktan, dapat from the time na tumigil ang defect ng
consent.
○ Ex. 5 years kang binubugbog para makuha yung consnet mo, sa pagtatapos lang
nung 5 years magsisimula yung four years.
○ Kung within the four years, hindi ka nag-file ng remedy of annulment, ibig
sabihin yung karapatan mo ay nag-prescribe na. Kapag pinalagpas mo yung four
years, it is a sign na okay lang sayo ang nangyari.
- In case of mistake or fraud, from the time of the discovery of the same.
● Hindi from the time of the commission of the fraud dahil if this is the case mas lalo
maeenganyo na manloko yung iba kasi alam nila na kapag hindi nalaman yung fraud ithin
the period, pwedeng mag-prescribe yung action.
○ Rather, from the time na nalaman na niloko ka, doon pa lang tatakbo ang four
year period para ipawalang-bisa ang napasok niyong kontrata.
- And when the action refers to contracts entered into by minors or other incapacitated persons,
from the time the guardianship ceases.
● If minor, from the time na mag 18 years old siya hanggang maging 22 siya, pwede niyang
ipa-annul ang pinasok niyang kontrata noong bata pa siya.
● If incapacitated, from the time na gumaling ang pagkakabaliw niya.
Art. 1392. Ratification extinguishes the action to annul a voidable contract.

- Sa Ratification, sinasabi mong okay lang sayo ang nangyari at i-consider na okay ang contract.
Requisites of Ratification
a) the contracts must be a voidable one.
b) the person ratifying must know the reason for the contract being voidable (i.e., the cause must be
known)
c) the cause must not exist or continue to exist anymore at the time of ratification.
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d) the ratification must have been made expressly or by an act implying a waiver of the action to annul.
e) the person ratifying must be the injured party.
Art. 1393. Ratification may be effected expressly or tacitly. It is understood that there is a tacit ratification
if, with knowledge of the reason which renders the contract voidable and such reason having ceased, the
person who has a right to invoke it should execute an act which necessarily implies an intention to waive
his right.
a) Express - oral or written
b) Tacit / implied – as from conduct implying a waiver
● Ex. Tinakot ka o sinaktan ka para ibenta yung kotse mo. Yung ibinayad sayo na ₱1,000,000, kung
wala kang kabalak-balak na matuloy ang contract you could easily keep na 1M then within the
four-year period from the time na tumigil ang pananakit, you could ask for the annulment of the
sale sa korte. (Ginamit mo yung remedy mo na annulment)
○ But instead na pumalag ka o pumunta ka sa korte para ipawalang bisa ang contract,
nanahimik ka at ginamit mo yung pera sa ibat’t ibang bagay. Ano ang ibig sabihin ng
actions mo? IT IS DEEMED AS A RATIFICATION NUNG DEFECT SA CONSENT.
■ Kung anoman ang naging defect sa iyong consent (tinakot ka o sinaktan ka), the
fact na hindi ka pumapalag within the four-year period at ginamit mo pa yung
pera--- it is a sign na okay lang sayo ang nangyari.
● Kapag in-annul ang isang voidable contract, balikan ito. Ibabalik mo
yung pera niya at ibabalik niya yung property mo.
Art. 1394. Ratification may be effected by the guardian of the incapacitated person.
- Ratification: when one voluntarily adopts some defective or unauthorized act or contract which,
without his subsequent approval or consent, would not be binding on him.
- Ratification will cleanse the contract of the defects.
Sino ang pwedeng mag-ratify ng isang defective contact:

● A contract entered into by an incapacitated person may be ratified by:
1. Guardian
2. Injured party provided he is already capacitated.
Art. 1395. Ratification does not require the conformity of the contracting party who has no right to bring
the action for annulment.
● Kapag nagkabentahan ang isang bata at matanda, ang may karapatan lang to file an action for
annulment ay yung bata.
○ Kapag yung magulang o siya pagdating niya ng 18 years old ay nag-file ng action for
annulment, hindi kailangan na mag-conform o pumayag yung other contracting party
(yung matanda). Hindi siya yung kailangan magsabi na okay lang pala yon, hindi
kailangan ng consent niya para matuloy ulit ang contract.
● The guilty party’s consent is not needed otherwise he may find a way of getting out of the
contract by the simple expedient of refusing to ratify.
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Art. 1396. Ratification cleanses the contract from all its defects from the moment it was constituted.
- Cleanses the contract: as if walang issue ang contract or as if hindi nagkaroon ng defect
● Effect of Ratification:
○ Ratification cleanses the contract of all its defects from the moment it was executed. It
extinguishes the right of action to annul. In other words, the effect of ratification is to
make the contract valid from its inception subject to the prior rights of third person.
Art. 1397. The action for the annulment of contracts may be instituted by all who are thereby obliged
principally or subsidiarily. However, persons who are capable cannot allege the incapacity of those with
whom they contracted; nor can those who exerted intimidation, violence, or undue influence, or employed
fraud, or caused mistake base their action upon these flaws of the contract.
● Ex. Nagkabentahan ang isang matanda sa isang 15 years old. Ang may karapatan lang na
ipa-annul ang contract ay yung taong naagrabyado, which is yung bata dahil supposedly wala pa
siyang kakayahan magdesisyon para sa sarili niya.
● Ex. Binenta ng isang 15 years old ang kanyang kotse for ₱1,000,000 but worth 800,000 lang.
Nagulangan ng 200k yung matanda. Later on, pag na-realize ng matanda na naloko siya nung
bata, hindi pwedeng mag-request ng annulment ang matanda. Ikaw na nagtake advantage sa
kamusmusan ng bata (ikaw na nanakot o nanakit o nanloko) ay walang karapatan na humingi ng
annulment. Hindi pwedeng ikaw ang humingi ng annulment mula sa isang bagay o problema na
ikaw lang din naman ang naging puno’t dulo.
○ Ikaw yung nagtake advantage sa bata at kapag na-realize mong ikaw ay nalugi o naloko,
bawal na ikaw ang manghingi ng annulment.
● Ang pwede lang manghingi ng annulment ay yung bata, baliw, tinakot, niloko, sinaktan.
Persons entitled to file an action to annul

a) the plaintiff must have an interest in the contract;
b) the victim and not the party responsible for the defect is the person who must assert the same.
Art. 1398. An obligation having been annulled, the contracting parties shall restore to each other the
things which have been the subject matter of the contract, with their fruits, and the price with its interest,
except in cases provided by law.
In obligations to render service, the value thereof shall be the basis for damages.
- Balikan ng mga bagay. Babalik kayo sa itsura bago kayo pumasok sa contract.
Art. 1399. When the defect of the contract consists in the incapacity of one of the parties, the
incapacitated person is not obliged to make any restitution except insofar as he has been benefited by the
thing or price received by him.
- Required lang mag-reimburse ang isang incapacitated person kapag ang napunta sa kanyang
bagay ay nakinabang siya (pagkain -- value ng pagkain na nakuha niya based on the transaction
ay required niyang bayaran dahil nakinabang naman siya)
● Ex. Luxury items-- luho lang hindi naman talaga nakinabang, hindi siya obliged to make
any restitution
Effect of annulment of a voidable contract
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a) if the contract is executory, the parties are not bound to comply with their prestation.
b) if the contract is already executed, the parties shall restore to each other the object of the contract, that
is, the money plus interest, the property together with its fruits. However, if the ground for annulment is
incapacity of the other party, the party incapacitated is bound to return to the extent he was benefited.
No Restitution by Incapacity Party

a) this applies if the defect is incapacity.
b) this constitutes an exception to the obligation of mutual restitution under Art. 1398.
c) Restitution is only to the extent of enrichment (pecuniary or otherwise).
Art. 1400. Whenever the person obliged by the decree of annulment to return the thing can not do so
because it has been lost through his fault, he shall return the fruits received and the value of the thing at
the time of the loss, with interest from the same date.
Loss of the thing while in the possession of the party at fault
a) If due to his fault
- to return the value of the thing at the time of loss
- interest on the value of the thing
- fruits
b) if due to fortuitous event
- the value of the thing at the time of loss but no interest
- fruits received
Art. 1401. The action for annulment of contracts shall be extinguished when the thing which is the object
thereof is lost through the fraud or fault of the person who has a right to institute the proceedings.
- Yung bata, baliw, tinakot, sinaktan o niloko ang rason kung bakit nasira yung object, mawawala
na yung karapatan niya. Ma-offset yung obligation
If the right of action is based upon the incapacity of any one of the contracting parties, the loss of the
thing shall not be an obstacle to the success of the action, unless said loss took place through the fraud or
fault of the plaintiff.
- Mawawala lang yung karapatan niyang maghabol kapag siya (bata) mismo ang naging dahilan
kung bakit nawala o nasira yung subject matter.
Loss of the thing while in the possession of the party who can annul the contract
a) if due to his fault – the right to annul is extinguished in short, the party has no more right to annul.
b) if due to fortuitous event – the contract can still be annulled, unless if the innocent party could no
longer restore what in virtue of the decree of annulment he is bound to return.
Art. 1402. As long as one of the contracting parties does not restore what in virtue of the decree of
annulment he is bound to return, the other cannot be compelled to comply with what is incumbent upon
him.
- Hanggang hindi naibabalik nung isa ang kanyang nakuha, hindi required magbalik ang other
contracting parties kasi ang goal is RESTITUTION: ibabalik sa isat isa kung ano ang naibigay
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- One party cannot be compelled if other party does not restore
UNENFORCEABLE CONTRACTS
Unenforceable contracts: contracts that cannot be enforced in court or sued upon by certain defects
- Valid but kung hindi sumunod yung other contracting party edi i-enforce sana (dadalhin sa korte)
but these contracts cannot be enforced. Hindi ito pwedeng dalhin sa korte.
- Valid kapag gustong sundin ng both contracting parties but once one of them ay ayaw na
tuparin ang contract, hindi ito pwedeng dalhin sa korte upang humingi ng tulong.
Art. 1403. The following contracts are unenforceable, unless they are ratified:
(1) Those entered into in the name of another person by one who has been given no authority or legal
representation, or who has acted beyond his powers;
● Kapag ibinenta ng ibang tao ang iyong property nang hindi mo naman siya in-authorize, the
contract is an unenforceable contract.
○ Valid but unenforceable
■ Kung okay sa inyo ang presyong nakuha sa pagbenta ng property mo kahit hindi
authorized, pwedeng ituloy ang kontrata.
■ Ngunit kung hindi mo naman in-authorize at hindi ka sang-ayon sa presyo nung
binenta (dahil lugi or hindi ka lang sang-ayon) hindi ka required respetuhin yung
kontrata na pinasok nung third person.
● What if sabihin nung buyer i-dedemanda ko kayo dahil binentahan ako
nung katulong niyo? Hindi maaring ibenta ng third person ang isang
bagay na hindi naman sa kanya at hindi rin pwedeng sabihin nung third
person na agent mo siya dahil hindi naman siya authorized. Hindi mo
kailangan matakot dahil ang contract na pinasok nung katulong mo ay
UNENFORCEABLE. Hindi ito diringgin ng korte at ibabasura lang ang
kaso. Wala kang legal repercussion dahil hindi ito pwedeng i-enforce sa
korte.
● Dapat yung buyer ay humingi muna ng special order of attorney bilang
katibayan na siya ay authorized na magbenta nung object.
(2) Those that do not comply with the Statute of Frauds as set forth in this number. In the following cases
an agreement hereafter made shall be unenforceable by action, unless the same, or some note or
memorandum, thereof, be in writing, and subscribed by the party charged, or by his agent; evidence,
therefore, of the agreement cannot be received without the writing, or a secondary evidence of its
contents:
Statute of Frauds: Ang batas ay nagrerekomenda na may mga certain contracts o transactions na dapat
sana ay may masunod na proper form (often in writing) upang ito ay maging enforceable sa korte.
- ang mga nakalagay sa listahan na ito ay required na maging “in writing”, pwedeng public or
private writing, upang ito ay maging enforceable sa korte.
- Mas magandang in writing dahil may basehan ang contracting parties at kapag hindi
sinunod ang tamang form (in writing) hindi kayo matutulungan ng korte
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(a) An agreement that by its terms is not to be performed within a year from the making thereof;
- kung ang usapan niyo na kailangan niyang gawin ay hindi magagawa within the coming
year, your agreement should be in writing
● Ex. Interior designer yung kaibigan mo at sabi mo sa kanya na kapag nagkabahay
ka 5 years from now, gusto mong siya ang mag-design
○ Kung ang gagawing trabaho ay 5 years from now pa, according sa
Statute of Frauds “if it is not to be performed within a year”, ang dapat
gawin ay the agreement ay should be in writing.
○ Ano ang effect kapag matagal pa pala ang agreement at hindi ginawang
in writing? VALID BUT kung ang other contracting party after 5 years
ay hindi na tutupad sa agreement, hindi ito pwedeng kasuhan at dalhin sa
korte.
■ Tutulungan ka lang ng korte kung sinunod niyo ang tamang form
— must be in writing.
● Kung oral lang ang agreement at pumayag pa rin na gawin ang obligation, okay
lang dahil VALID naman ito. Pero kung ayaw na sundin ang agreement, hindi mo
lang madadala sa korte dahil unenforceable nga ito at oral form lang ang
nangyari.
(b) A special promise to answer for the debt, default, or miscarriage of another;
● Kapag nangangako kang sagutin ang utang ng iba: the contract of guarantee o ang
pagiging guarantor mo must be in writing
○ GUARANTOR: an individual who promises to pay a borrower's debt in the event
that the borrower defaults on his or her loan obligation.
● Kung oral lang ang pag-designate kay guarantor at hindi na makabayad si debtor, pwede
pa rin sagutin ni guarantor ang utang.
○ Pero tutulungan lang kayo ng korte kapag sinunod niyo ang tamang form ng
contract —- in writing
(c) An agreement made in consideration of marriage, other than a mutual promise to marry;
● Ex. Nangako ang ninong niyo sa darating niyong kasal na magreregalo siya ng kotse.
Dapat yung agreement o yung pangako ay in writing para kung hindi niya tinupad ang
kanyang pangako ay pwedenh habulin sa korte.
(d) An agreement for the sale of goods, chattels or things in action, at a price not less than five
hundred pesos, unless the buyer accept and receive part of such goods and chattels, or the
evidences, or some of them, of such things in action or pay at the time some part of the purchase
money; but when a sale is made by auction and entry is made by the auctioneer in his sales book,
at the time of the sale, of the amount and kind of property sold, terms of sale, price, names of the
purchasers and person on whose account the sale is made, it is a sufficient memorandum;
● Sale of goods and the price is ₱500 and up — dapat in writing para pwedeng habulin sa
korte kapag may problema
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(e) An agreement for the leasing for a longer period than one year, or for the sale of real property
or of an interest therein;
● pag nagparenta ka for more than one year dapat sana in writing yung agreement or
contract
● pag nagbenta ka ng lupa at para mag enforceable ito sa korte, dapat ito ay in writing
● Question: What is the status of an oral sale of land? UNENFORCEABLE — valid but
cannot be enforced in court
○ Pero kapag mayroon sa kanilang hindi na tutupad sa kanilang pangako, hindi ito
pwedeng dalhin sa korte para pilitin gawin yung pangako
(f) A representation as to the credit of a third person.

● credit rating: kung magaling magbayad —- in writing sana
(3) Those where both parties are incapable of giving consent to a contract.
● Ex. Minor at minor ay nakipagdeal sa isa’t isa
○ status ng contract nila: UNENFORCEABLE
● Ex. Ayaw na pumayag nung isang minor na pagbentahan yung isa. Question:
○ Question pwede ba idemanda o dalhin ito sa korte? NO dahil parehas silang minor.
Anoman ang usapan ng isang minor, sa mata ng batas ay unenforceable.
Note:
Minor + Minor = Unenforceable
Minor + Legal Age = Voidable
Legal Age + Legal Age (no vice of consent) = Perfectly Valid
Art. 1404. Unauthorized contracts are governed by Article 1317 and the principles of agency in Title X of
this Book.
Art. 1405. Contracts infringing the Statute of Frauds, referred to in No. 2 of Article 1403, are ratified by
the failure to object to the presentation of oral evidence to prove the same, or by the acceptance of benefit
under them.
- As a general rule, kapag ang isang unenforceable contract ay dinala sa korte, hindi pwedeng
gamitin na evidence sa korte ang oral na usapan.
- Ngunit sa korte may chance ang both parties to present evidence. Yung isang contracting
party nagpresenta sya ng oral evidence ng inyong usapan. Hindi ito automatically na
i-rreject ni judge, ang dapat mag-object or kumontra roon ay yung other contracting party.
Sasabihing hindi dapat tanggapin ang specific evidence na iyon sa kaso dahil for an
unenforceable contracts, oral evidences should not accepted.
- Failure to object is a sign na ni-waive niya ang kanyang karapatan. Ibig sabihin
okay lang mag-present ng oral evidence.
- Hindi pwedeng sabihin na wala kayong agreement kung nakatanggap ka naman na ng benefit
under such contract.
- Ex. Contract of sale of land ₱1,000,000. Nag-down payment ka na ng ₱20,000 kahit oral
lang ang bentahan niyo kung nakatanggap na yung seller ng payment. Hindi niya
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pwedeng sabihin later on na wala silang naging usapan. The mere fact na tumanggap ka
na ng benefits o pera, it is a sign na mayroon nga kayong naging usapan.
Note:
Unenforceable contracts only applies to wholly executory — yung hindi pa na-eexecute. Pero kapag
partially executed na siya or fully executed na siya (nagkapalitan na ng benefits), hindi na nag-aapply ang
unenforceable contracts and it is considered as perfectly valid na.
Art. 1406. When a contract is enforceable under the Statute of Frauds, and a public document is
necessary for its registration in the Registry of Deeds, the parties may avail themselves of the right under
Article 1357.
Art. 1407. In a contract where both parties are incapable of giving consent, express or implied ratification
by the parent, or guardian, as the case may be, of one of the contracting parties shall give the contract the
same effect as if only one of them were incapacitated.
If ratification is made by the parents or guardians, as the case may be, of both contracting parties, the
contract shall be validated from the inception.
● minor + minor = unenforceable
○ Ex. Nabentahan mo ng laruan yung kaklase mo na worth ₱100 at nalaman ng magulang
mo at okay lang daw sa kanya. Ano ang effect nito? Ni-ratify ng magulang mo yung
ginawa mong pagbebenta kahit bata ka pa lang. Ang dating nito ay parang of legal age ka
na dahil pumayag yung magulang mo. Naging Legal Age (ikaw) + Minor (kaklse mo) =
Voidable
■ Later on, pag nalaman ng magulang ng kaklase mo yung bentahan ng laruan,
pwedeng ipa-annul ng magulang ng kaklase mo yung contract of sale niyo dahil
naging voidable na. Required mo ibalik yung pera at ibabalik ng kaklase mo
yung laruan.
● Naging voidable yung contract of sale, kaya pwede ipa-annul. Ratified
ng magulang mo kaya parang of legal age ka at yung kaklase mo ay hindi
pinayagan kaya voidable at pwede ipa-annul.
● But kung pumayag din yung magulang ng kaklase mo parang magiging
of legal age na rin ang kaklase mo. Legal Age + Legal Age = Valid
○ Pero kung hindi pumayag parehas ang magulang niyo mananatiling unenforceable ang
contract dahil parehas kayong minor. Minor + Minor = Unenforceable
Art. 1408. Unenforceable contracts cannot be assailed by third persons.

- Only the parties within the contract ang pwede lang kumontra sa isang unenforceable contracts.
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VOID CONTRACTS
- most defective
VOID AND INEXISTENT CONTRACTS

Art. 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
or public policy;
● Kapag ang intention niyo sa contract ay labag sa batas ( ex. papatay ng tao para sa isang
halaga, prostitution, adultery, pananakit sa pamilya, panggugulo sa lugar) — contract is
void
(2) Those which are absolutely simulated or fictitious;

● Absolutely simulated contract: gawa-gawang contract, pinapasok ng mga tao para
makapangloko —- void
(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;

● Mga bagay na bawal na ibenta, pwedeng existent pa pero bawal na ibenta
○ ex. Marijuana: there was a time na pwedeng ibenta but now outside the
commerce of men na siya dahil kasama na sa prohibited drugs
■ Pag nagkabentahan ng marijuana, the contract is considered void
(5) Those which contemplate an impossible service;

● Ex. Bibigyan kita ng 50,000 kapag pumunta ka sa buwan. —- impossible gawin. Hence
the contract is void.
(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.

● Ex. Pagbebenta ng mga hayop na may sakit.
These contracts cannot be ratified. Neither can the right to set up the defense of illegality be waived.
- Ang isang contract na sa simula pa lang ay wala nang bisa ay hindi na pwede maayos, hindi
katulad ng rescissible, unenforceable and voidable contracts.
- VOID CONTRACTS CANNOT BE FIXED. IT CANNOT BE RATIFIED.
Art. 1410. The action or defense for the declaration of the inexistence of a contract does not prescribe.
- Yung sasabihin mo o gagamitin mo bilang defense na hindi ka na tutuloy sa contract ay hindi
nag-pprescribe dahil it is a void contract. (Walang prescriptive period unlike sa voidable contracts
na within four years.)
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Art. 1411. When the nullity proceeds from the illegality of the cause or object of the contract, and the act
constitutes a criminal offense, both parties being in pari delicto, they shall have no action against each
other, and both shall be prosecuted. Moreover, the provisions of the Penal Code relative to the disposal of
effects or instruments of a crime shall be applicable to the things or the price of the contract.
This rule shall be applicable when only one of the parties is guilty; but the innocent one may claim what
he has given, and shall not be bound to comply with his promise.
● ¨Both parties being in pari delicto¨- parehas silang may kasalanan, mag-ooffset lang yung atraso
nila sa isa`t isa.
Art. 1412. If the act in which the unlawful or forbidden cause consists does not constitute a criminal
offense, the following rules shall be observed:
(1) When the fault is on the part of both contracting parties, neither may recover what he has
given by virtue of the contract, or demand the performance of the other's undertaking;
● Parehong may kasalanan yung contracting parties sa void nilang contract, hindi na sila
pwedeng makarecover.
(2) When only one of the contracting parties is at fault, he cannot recover what he has given by
reason of the contract, or ask for the fulfillment of what has been promised him. The other, who is
not at fault, may demand the return of what he has given without any obligation to comply his
promise.
● Yung contracting party na walang kasalanan ay pwedeng mag-demand ng return ng bagay
na naibigay niya na.
Art. 1413. Interest paid in excess of the interest allowed by the usury laws may be recovered by the
debtor, with interest thereon from the date of the payment.
● This is a protection against creditors na sobra-sobra maningil ng interest, kaya pwedeng
ma-recover kapag sobra.
Art. 1414. When money is paid or property delivered for an illegal purpose, the contract may be
repudiated by one of the parties before the purpose has been accomplished, or before any damage has
been caused to a third person. In such case, the courts may, if the public interest will thus be subserved,
allow the party repudiating the contract to recover the money or property.
● Money is paid for an illegal purpose: Magbabayad para sa pagpatay ng isang tao, the contract
may be repudiated or cancelled bago mangyari yung purpose ng contract. Papayagan ka na
mabawi yung bagay na binigay mo kapag hindi ka na pumayag na ituloy yung illegal contract.
Art. 1415. Where one of the parties to an illegal contract is incapable of giving consent, the courts may, if
the interest of justice so demands allow recovery of money or property delivered by the incapacitated
person.
● May mga circumstance na pwede mag-demand ang isang minor o isang baliw (incapacitated
person) na mabawi yung dineliver niyang bagay if supposedly ang contract nila is illegal.
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Art. 1416. When the agreement is not illegal per se but is merely prohibited, and the prohibition by the
law is designated for the protection of the plaintiff, he may, if public policy is thereby enhanced, recover
what he has paid or delivered.
Art. 1417. When the price of any article or commodity is determined by statute, or by authority of law,
any person paying any amount in excess of the maximum price allowed may recover such excess.
● Kapag sobra ang ibinayad, pwede itong ma-recover (solutio indebiti)
Art. 1418. When the law fixes, or authorizes the fixing of the maximum number of hours of labor, and a
contract is entered into whereby a laborer undertakes to work longer than the maximum thus fixed, he
may demand additional compensation for service rendered beyond the time limit.
● Kapag sobra sa 8 hours yung trabaho, yung excess is considered overtime at dapat itong bayaran
Art. 1419. When the law sets, or authorizes the setting of a minimum wage for laborers, and a contract is
agreed upon by which a laborer accepts a lower wage, he shall be entitled to recover the deficiency.
● Kung may isang contract na below minimum wage ang sweldo, hindi porket pumayag ang laborer
na tumanggap ng mas mababang sahod ay yon na lang ang makukuha niya. He shall be entitled to
recover the deficiency o yung kulang sa sweldo niya.
○ Ginawa ng DOLE ang minimum wage para iyon ang pinakamababang sahod na makuha
ng isang laborer.
Art. 1420. In case of a divisible contract, if the illegal terms can be separated from the legal ones, the
latter may be enforced.
● If may portion sa contract na naging illegal or void, i-cconsider ito na hiwalay sa ibang contract.
Art. 1421. The defense of illegality of contract is not available to third persons whose interests are not
directly affected.
● Sino lang ang pwedeng gumamit ng defense na ang contract nila ay void? THE CONTRACTING
PARTIES ONLY. Yung mga third persons na hindi naman kasali sa contract cannot use the
defense na void or illegal yung contract para ma-disregard ang contract.
Art. 1422. A contract which is the direct result of a previous illegal contract, is also void and inexistent.
● Nahahawa siya sa lumang illegal contract— void and inexistent. Kaya dapat magsimula sa
panibagong valid contract.
NATURAL OBLIGATIONS
Art. 1423. Obligations are civil or natural. Civil obligations give a right of action to compel their
performance. Natural obligations, not being based on positive law but on equity and natural law, do not
grant a right of action to enforce their performance, but after voluntary fulfillment by the obligor, they
authorize the retention of what has been delivered or rendered by reason thereof. Some natural obligations
are set forth in the following articles.
● Obligation is a juridical necessity to give, to do or not to do. —-Civil Obligation
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○ Kapag ayaw na sumunod ng other contracting party, pwede mo siya dalhin sa korte at
pwede mo siyang kasuhan.
● Natural Obligations — Kapag ayaw na tumupad ng other contracting party sa kanyang obligation,
hindi mo siya pwedeng dalhin sa korte upang kasuhan.
○ Ang isang natural obligation dahil nag-prescribe na at ito ay hindi na required bayaran.
Ngunit kung ito ay binayaran pa rin ni debtor, it is considered valid at hindi niya na ito
mababawi dahil it is a recognition sa part ni debtor na totoong may utang pa siya kay
creditor.
Art. 1424. When a right to sue upon a civil obligation has lapsed by extinctive prescription, the obligor
who voluntarily performs the contract cannot recover what he has delivered or the value of the service he
has rendered.
● Wala nang bawian kapag nakapagbayad ka sa isang natural obligation.
Art. 1425. When without the knowledge or against the will of the debtor, a third person pays a debt which
the obligor is not legally bound to pay because the action thereon has prescribed, but the debtor later
voluntarily reimburses the third person, the obligor cannot recover what he has paid.
● Nag-prescribe na yung utang pero may third person na nagbayad kay creditor. If ever,
nag-reimburse si debtor kay third person, si debtor or obligor ay hindi na mababawi yung binigay
niya kay third person.
○ But kung si third person ay nagbayad ng walang consent ni debtor, pwede pa ba siya
makarecover kay debtor para sa pagbabayad ng isang utang na prescribe na? NO.
Prescribe na yung utang kaya hindi na dapat talagang bayaran ni debtor.
Art. 1426. When a minor between eighteen and twenty-one years of age who has entered into a contract
without the consent of the parent or guardian, after the annulment of the contract voluntarily returns the
whole thing or price received, notwithstanding the fact the he has not been benefited thereby, there is no
right to demand the thing or price thus returned.
- Hindi na ito applicable ngayong panahon dahil ang age of majority ay 18 years old na
Art. 1427. When a minor between eighteen and twenty-one years of age, who has entered into a contract
without the consent of the parent or guardian, voluntarily pays a sum of money or delivers a fungible
thing in fulfillment of the obligation, there shall be no right to recover the same from the obligee who has
spent or consumed it in good faith.
- Ginawa ito noong panahon na 21 years old pa ang age of majority at hindi na rin applicable
ngayon
Art. 1428. When, after an action to enforce a civil obligation has failed the defendant voluntarily
performs the obligation, he cannot demand the return of what he has delivered or the payment of the value
of the service he has rendered.
● Kapag yung defenant ay nagbayad o ginawa niya yung bagay na hindi niya na dapat ginagawa
dahil nag-prescribed na yung obligation, hindi niya na ito pwedeng mabawi
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Art. 1429. When a testate or intestate heir voluntarily pays a debt of the decedent exceeding the value of
the property which he received by will or by the law of intestacy from the estate of the deceased, the
payment is valid and cannot be rescinded by the payer.
● Kapag ikaw ay isang tagapagmana, hindi pwedeng mas malaki pa yung mamanahin mong utang
kesa sa assets na makukuha mo. Pwede pang zero or wala ka nang makukuha dahil pinambayad
na ng utang pero hindi mangyayari na mas malaki pa yung utang.
○ But kung sa personal assets mo ay kumuha ka ng pera para pambayad sa mga utang ng
pinagmahan mo, the payment is valid and it cannot be rescinded by the payer, hindi mo
na ito mababawi.
Art. 1430. When a will is declared void because it has not been executed in accordance with the
formalities required by law, but one of the intestate heirs, after the settlement of the debts of the deceased,
pays a legacy in compliance with a clause in the defective will, the payment is effective and irrevocable.
● Nagbayad ang isang tagapagmana kahit hindi na bayad, the payment is effective and irrevocable
Fighting!
Mariel Enriquez

Obligations and Contracts

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Obligations and Contracts

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Obligations and Contracts: Modules 1-5

An obligation is a juridical necessity to give, to do or not to do.

Example of prescriptive period:

Requisites/ Elements of an obligation:

Kinds of obligation according to the subject matter

Nature and Effect of Obligations

ibig sabihin na ganon ka dapat alagaan ng mga transportation vehicles. Pinapangako ng

Determinate/specific thing vs. Generic thing

What are the obligations of a debtor obliged to give a determinate thing?

Personal right VS Real right

Remedies of the creditor

● If the debtor does what has been forbidden him:

Grounds for liability to pay for damages:

DAMNUM ABSQUE INJURIA

B. Fraud in the performance of the obligation

Rules in waiver of Fraud:

Delay or Default or Mora

○ Compensatio Morae - delay in reciprocal obligations, both parties are in default. It is as

- Ex. On September 1, tinawag mo yung seller na dapat madeliver na yung aso

Requisites of fortuitous event to be accepted as a justification for the non-performance of an

Article 1175. Usurious transactions shall be governed by special laws

Presumptions on receipts of principal and installment payments (Art. 1176)

Exceptions are intransmissible rights and obligations :

■ This is called a Purely Potestative Condition, dahil nakadepende sa will ng

Obligations with a period

■ Pwedeng sagarin ng creditor on December 31,2020 para ma-maximize yung kita

Instances when the court may fix a period

Kinds of Obligation according to object:

Choice belongs to the debtor

1. Dog (FE) >> Cow (FE) >> Cat (FE)

● Bago ma-deliver yung pusa, napabayaan ulit ni debtor at namatay. Makakapag-comply pa ba si

Creditor belongs to the creditor

Joint and Solidary Obligation

Kinds of Solidary Obligation:

1. Mr. X borrowed P 10,000 from Mr. A and Mr. B, joint creditors

1. X, Y, and Z (solidary debtors) borrowed P12,000 from A & B (solidary creditors).

A & B creditors X & Y Debtors

1. S - 12,000 (buong amount) S - 12,000

● Si X naman na nagbayad ng 4,000, required ba siyang manghingi ng reimbursement sa kapwa

● yung buong 6,000 na share ni A ay pwede niyang makolekta kay X.

○ Para makapagdemand na ma-perform ang isang joint indivisible obligation, pupunta si X

- Hindi ka pwedeng gumawa ng bagay na makakasama (prejudicial) sa kapwa creditors mo

Divisible and Indivisible Obligations

Obligation with a penal clause

Principal Obligation - one in which it can stand by itself

Legal Tender Law

Requisites of application of payment:

Tender of Payment and Consignation

Sequence of events in Tender of Payment and Consignation

LOSS OF THE THING DUE

- Ex. Contractor ka ng bahay na kailangan tapusin in 3 months. Hindi ganon kadaling

compensation, pag ikaw ay naningil sakin ng 100,000, I could always say na

Article 1279. In order that compensation may be proper, it is necessary:

Difference of Expromission and Delegacion

Kung si X ay napunta sa obligation dahil sa Dahil kay debtor, napasok si X sa obligation.

Two scenario: Laging may consent ni debtor dahil ang nagpasok

As to recovery from the original debtor:

2. Kapag walang consent, he can only

As to the effect of new debtor’s insolvency:

Consensual contract - perfected by mere consent

pinasok ng katulong niyo? NO. HINDI KA REQUIRED RESPETUHIN YON DAHIL

Essential Requisites of a Contract

- Kailan magkaroon ng perfected contract? Sa araw na nalaman nung nag-offer (seller) na