PHILIPPINE CIVIL

CODE
REPUBLIC ACT NO. 386
WHAT IS THE REPUBLIC
ACT NO. 386?
- Also known as the Civil Code of
the Philippines(Chap.1,Ar.1).

-Strongly influenced by the

Spanish Código Civil, which was
first enforced in 1889.

-In 1947, President Manuel Roxas

of the Third Republic created a
new Code Commission.

-The Code Commission

completed the final draft of the
new Civil Code by December
1947, and this was submitted to
Congress, which enacted it into
law through Republic Act No.
386. The Civil Code took effect in
1950.

NAKPIL & SONS V. CA- LIABILITY
AND FORTUITOUS EVENT
October 3, 1996
Private respondents –
Philippine Bar Association (PBA)
– a non-profit organization
formed under the corporation
law decided to put up a
building in Intramuros, Manila.
Hired to plan the specifications
of the building were Juan
Nakpil & Sons, while United
Construction was hired to
construct it. The proposal was
approved by the Board of
Directors and signed by the
President, Ramon Ozaeta. The
building was completed in 1966.
 Sometime in 2001, Sps. Vergara levelled the uneven portion
of the Vergara Property by filling it with gravel, earth, and
soil. As a result, the level of the Vergara Property became
even higher than that of the Sonkin Property by a third of
a meter. Eventually, Sps. Sonkin began to complain that
water coming from the Vergara Property was leaking into
their bedroom through the partition wall, causing cracks,
as well as damage, to the paint and the wooden parquet
floor. Sps. Sonkin repeatedly demanded that Sps. Vergara
build a retaining wall on their property in order to contain
the landfill that they had dumped thereon, but the same
went unheeded. Hence, Sps. Sonkin filed the instant
complaint for damages and injunction with prayer for
SPS. FERNANDO VERGARA and HERMINIA preliminary mandatory injunction and issuance of a
VERGARA, Petitioners, v. ERLINDA temporary restraining order against Sps. Vergara, as well
as Sps. Rowena Santiago and Harold Santiago, Dolores
TORRECAMPO SONKIN, Respondent Vergara-Orbistondo, and Rosario Vergara-Payumo, the
other possessors of the Vergara Property.
October 3, 1996
‘‘Ignorance of the law excuses no one
from compliance therewith.”

—Article 3, Civil Code

CHAPTER 1: EFFECT AND APPLICATION OF LAWS
Article 5
Acts executed against the
provisions shall be void,
Article 7
Orders and regulations shall
be valid only when they are
not contrary to the laws .
Article 8
Interpreting the laws shall
form a part of the legal
system of the Philippines.
Article 6
Rights may be waived unless the
waiver is contrary to law, public
order, public policy, morals.
Article 10
In case of doubt in the
interpretation or
application of laws, the
lawmaking body intended
right and justice to prevail.
CHAPTER 1: EFFECT AND APPLICATION OF LAWS

Article 11 Article 13 Article 17

Customs which are When the laws speak of Forms and solemnities of
years, months, days or contracts and other public
contrary to law, public order
nights, it shall be instruments shall be
or public policy shall not be
understood that years are governed by the laws.
countenanced.
of three hundred sixty-five
days each; months, of
thirty days; days, of
twenty-four hours; and
nights from sunset to
sunrise.

In computing a period, the

first day shall be excluded,
and the last day included.
CHAPTER 2: HUMAN RELATIONS (n)
Article 19
Every person must, in the
exercise of his rights and in
the performance of his
duties, act with justice, give
everyone his due, and
observe honesty and good
faith
Every person who through an act of
Article 22
Article 20 Article 21
Every person who, shall Any person who causes loss
indemnify the latter for the or injury to another in a
same. manner that is contrary to
morals, good customs or
public policy shall
compensate the latter for
the damage.
performance by
another, or any other means,
acquires or comes into
possession of something at the
expense of the latter without
just or legal ground,
shall return the same to him.
CHAPTER 2: HUMAN RELATIONS (n)

Article 23 Article 26 Article 27

Even when an act causing
damage to another's
property was not due to the
fault or negligence of the
defendant, the latter shall
be liable for indemnity.
Every person shall Any person suffering material
respect the dignity, or moral loss because a
personality, privacy and public servant or employee
peace of mind of his refuses or neglects, without
neighbors and other just cause,
persons. shall produce a to perform his official duty may
cause of action for file an action for damages
damages, prevention and other relief against he
and other relief. latter, without prejudice to
any disciplinary
administrative action that may
be taken.
 CHAPTER 2: HUMAN RELATIONS (n)
Article 29 Article 32
When the accused in a Any public officer violates or
criminal prosecution is in any manner impedes or (8) The right to the equal
acquitted on the ground impairs any of the protection of the laws;
that his guilt has not been following rights and
proved beyond reasonable liberties of another person (14) The right to be free
doubt, a civil action for shall be liable to the latter from involuntary servitude
damages for the same act or for damages: in any form;
omission may be instituted.
CHAPTER 2: HUMAN RELATIONS (n)
Article 32
The indemnity shall include
moral damages. The
responsibility herein set
forth is not demandable
from a judge unless his act
or omission constitutes a
violation of the Penal Code .
Article 33
In cases of defamation,
fraud, and physical injuries a
civil action for damages,
entirely separate and
distinct from the criminal
action, may be brought by
the injured party.
 Book I
Person
s
Title I. - CIVIL PERSONALITY
BOOK I- PERSONS

CHAPTER 1 CHAPTER 2 CHAPTER 3

GENERAL PROVISIONS NATURAL PERSONS JURIDICAL PERSONS
Art. 44. The following Art. 46. Juridical persons
Art. 37. Juridical are juridical persons: may acquire and possess
Art. 42. Civil personality
capacity, which is the propertyof all kinds, as
is extinguished by death.
fitness to be the subject (1) The State and its well as incur obligations
of legal relations, is political subdivisions; and bring civil or criminal
inherent in every natural actions, in conformity with
person and is lost only
(2) Other corporations, the laws and regulations
through death. Capacity of their organization
institutions and entities
to act, which is the
for public interest or
power to do acts with
purpose, created by law;
legal effect, is acquired
their personality begins
and may be lost.
as soon as they have been
constituted according to
law;
 Book II
Property, Ownership, and
its Modifications
Title I. - CLASSIFICATION OF PROPERTY
Book II- Property, Ownership, and its Modifications

Art. 414. All things which are or may be the

object of appropriation are considered either:

(1) Immovable or real property; or

PRELIMINARY PROVISIONS (2) Movable or personal property.

Book II- Property, Ownership, and its Modifications
Article 416. The following things are
deemed to be personal property:

(1) Those movables susceptible of

appropriation which are not included in the
preceding article;

(2) Real property which by any special

provision of law is considered as personalty;

CHAPTER 2 (3) Forces of nature which are brought

MOVABLE PROPERTY under control by science; and

(4) In general, all things which can be

transported from place to place without
impairment of the real property to which

they are fixed. (335a)

 Book II- Property, Ownership, and its Modifications

Art. 419. Property is

either of public dominion constructed by the
or of private ownership. State, banks, shores,
roadsteads, and others
of similar character;
Art. 420. The following
things are property of
(2) Those which belong
CHAPTER 3 public dominion:
to the State, without
PROPERTY IN RELATION TO THE PERSON (1) Those intended for
being for public use, and
are intended for some
TO WHOM IT BELONGS public use, such as
public service or for the
roads, canals, rivers,
development of the
torrents, ports and
national wealth
bridges
Book II- Property, Ownership, and its Modifications

Art. 421. All other property of the State, which is not

of the character stated in the preceding article, is
patrimonial property.

CHAPTER 3 Art. 424. All other property possessed by any of them

is patrimonial and shall be governed by this Code,
PROPERTY IN RELATION TO THE PERSON without prejudice to the provisions of special laws.
TO WHOM IT BELONGS
 Book II
Property, Ownership, and
its Modifications
Title II. - OWNERSHIP
 CHAPTER 1
OWNERSHIP IN GENERAL
Art. 427. Ownership may be exercised over things or rights.
Art. 428. The owner has the right to enjoy and dispose of a thing,
without other limitations than those established by law.
Art. 435. No person shall be deprived of his property except by
competent authority and for public use and always upon payment
of just compensation.
Art. 437. The owner of a parcel of land is the owner of its surface
and of everything under it
 CHAPTER 3
RIGHT OF ACCESSION
SECTION 1. - Right of Accession with Respect to What is Produced by Property
Art. 441. To the owner belongs: (1) The natural fruits; (2) The industrial fruits; (3) The civil fruits.
SECTION 2. - Right of Accession with Respect to Immovable Property
Art. 445. Whatever is built, planted or sown on the land of another and the improvements or repairs made
thereon, belong to the owner of the land.
Art. 449. He who builds, plants or sows in bad faith on the land of
another, loses what is built
 CHAPTER 3
RIGHT OF ACCESSION

SECTION 3. - Right of Accession with Respect to Movable Property

Art. 466. Whenever two movable things belonging to different owners of the principal thing acquires the accessory.
 Book II
Property, Ownership, and
its Modifications

Title III. - CO-OWNERSHIP

Note : As the same refers to the generated plans/ designs for a Project.
Title III. - CO-OWNERSHIP
Art. 484. There is co-ownership whenever the ownership
of an undivided thing or right belongs to different
persons.
Art. 485. The share of the co-owners, in the benefits as
well as in the charges, shall be proportional to their
respective interests. Any stipulation in a contract to the
contrary shall be void.
Art. 489. Repairs for preservation may be made at the will
of one of the co-owners, but he must, if practicable, first
notify his co-owners of the necessity for such repairs.
 Title III. - CO-OWNERSHIP
Art. 490. Whenever the different stories of a
house belong to different owners:
(1) The main and party walls, the roof and the
other things used in common, shall be preserved at
the expense of all the owners in proportion to the
value of the story belonging to each;
(2) Each owner shall bear the cost of maintaining
the floor of his story; the floor of the entrance,
front door, common yard and sanitary works
common to all, shall be maintained at the
expense of all the owners pro rata;
(3) The stairs from the entrance to the first story
shall be maintained at the expense of all the
owners pro rata, with the exception of the owner
of the ground floor; the stairs from the first to the
second story shall be preserved at the expense of
all, except the owner of the ground floor and the
owner of the first story; and so on successively.
 Title III. - CO-OWNERSHIP
Art. 491. None of the co-owners shall, without the consent of the
others, make alterations in the thing owned in common.

Art. 492. There shall be no majority UNLESS the resolution is approved

by the co-owners who represent the controlling interest in the object of
the co-ownership.

Art. 493. Each co-owner shall have the full ownership of his part but
shall be limited to the portion which may be alloted to him in the
division upon the termination of the co-ownership.

Art. 494. NO co-owner shall be obliged to remain in the co-ownership.

Each co-owner may demand at any time the partition of the thing
owned in common, insofar as his share is concerned.

Art. 496. Partition may be made by agreement between the parties or

by judicial proceedings. Partition shall be governed by the Rules of
Court insofar as they are consistent with this Code.
 Title III. - CO-OWNERSHIP

Art. 498. Whenever the thing is essentially indivisible and the co-
owners cannot agree that it be allotted to one of them who shall
indemnify the others, IT SHALL BE SOLD and its proceeds distributed.

Art. 501. Every co-owner shall, after partition, be liable for defects of
title and quality of the portion assigned to each of the other co-owners.
 Book II
Property, Ownership, and
its Modifications

Title V. - POSSESSION
 CHAPTER 1
POSSESSION AND THE
KINDS THEREOF
Art. 523. Possession is the holding of a thing or
the enjoyment of a right.

Art. 524. Possession may be exercised in one's

own name or in that of another.

Art. 526. He is deemed a possessor in good

faith who is not aware that there exists in his
title or mode of acquisition any flaw which
invalidates it.

Mistake upon a doubtful or difficult question of

law may be the basis of good faith.
 CHAPTER 3
EFFECTS OF POSSESSION
Art. 539. Every possessor has a right to be
respected in his possession; and should he be
disturbed therein he shall be protected in or
restored to said possession by the means
established by the laws and the Rules of Court.
 BOOK III
DIFFERENT MODES OF
ACQUIRING OWNERSHIP

PRELIMINARY PROVISION
PRELIMINARY PROVISION
Art. 712. Ownership is acquired by occupation and
by intellectual creation.
Title II. - INTELLECTUAL CREATION
Art. 723. Letters and other private communications in
writing are owned by the person to whom they are
addressed and delivered, but they cannot be
published or disseminated without the consent of the
writer or his heirs. However, the court may authorize
their publication or dissemination if the public good or
the interest of justice so requires.

Art. 724. Special laws govern copyright and patent.

(429a)
 BOOK IV
OBLIGATIONS AND CONTRACTS
Title. I. - OBLIGATIONS
 An obligation is a
juridical necessity
to give, to do or not
to do.
-Art. 1156.
CHAPTER 1-GENERAL PROVISIONS
Art. 1157. Obligations arise from:
(1) Law;
(2) Contracts;
(3) Quasi-contracts;
(4) Acts or omissions punished by law; and
(5) Quasi-delicts.

Art. 1158. Obligations derived from law are not

presumed.
Art. 1159. Obligations arising from contracts have
the force of law between the contracting parties
and should be complied with in good faith.
Art. 1160. Obligations derived from quasi-contracts
shall be subject to the provisions of Chapter 1,
Title XVII, of this Book.
CHAPTER 1-GENERAL PROVISIONS

Art. 1162. Obligations derived from quasi-delicts

shall be governed by the provisions of Chapter 2,
Title XVII of this Book, and by special laws.

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.
CHAPTER 2
ARTICLE 1168
When the obligation consists in not
doing, and the obligor does what
has been forbidden him, it shall also
be undone at his expense.
ARTICLE 1170
Those who in the
performance of their
obligations are guilty of
fraud, negligence, or delay,
and those who in any
manner contravene the
tenor thereof, are liable for
damages.
 ARTICLE 1172
Responsibility arising from
negligence in the
performance of every
kind of obligation is
also demandable, but
such liability may be
regulated by the courts,
according to the
circumstances.
Usurious transactions shall be governed by special
ARTICLE 1173
The fault or negligence of the
obligor consists in the omission
of that diligence which is
required by the nature of the
obligation and corresponds
with the circumstances of the
persons, of the time and of the
place. When negligence shows
bad faith, the provisions of
Articles 1171 and 2201,
paragraph 2, shall apply
ARTICLE 1175.
laws.
ARTICLE 1174
Except in cases expressly
specified by the law, or when
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,
or which, though foreseen,
were inevitable.
 CHAPTER 4
EXTINGUISHMENT OF
OBLIGATIONS
SECTION 1 - Payment or Performance
ARTICLE 1232. ARTICLE 1235.
Payment means When the obligee accepts the
not only the performance, knowing its
delivery of money incompleteness or irregularity,
but also the and without expressing any
performance, in protest or objection, the
any other manner, obligation is deemed fully
of an obligation. complied with.
Title II. - CONTRACTS
CHAPTER 1

ARTICLE 1305
ARTICLE
1306
A contract is a meeting The contracting parties may
of minds between two establish such stipulations,
persons whereby one clauses, terms and conditions
binds himself, with as they may deem convenient,
respect to the other, to provided they are not contrary
give something or to to law, morals, good customs,
render some service. public order, or public policy.
ARTICLE
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.
CHAPTER 2
ARTICLE 1318
There is no contract unless
the following requisites
concur:
(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.
ESSENTIAL REQUISITES OF CONTRACTS
ARTICLE 1337 ARTICLE 1338
There is fraud when, There is fraud when, through
through insidious insidious words or
words or machinations machinations of one of
of one of the the contracting parties,
contracting parties, the other is induced to
the other is induced to enter into a contract
enter into a contract which, without them, he
which, without them, would not have agreed to.
he would not have
agreed to.
 ARTICLE 1339
Failure to disclose facts, The usual exaggerations in
when there is a duty
to reveal them, as
when the parties are
bound by confidential
relations, constitutes
fraud.
ARTICLE 1340 ARTICLE 1341
A mere expression of an
trade. opinion does not
signify fraud, unless
made by an expert and
the other party has
relied on the former's
special knowledge.
 All services which are
not contrary to law,
morals, good customs,
public order or public
policy may likewise be
the object of a contract.
 ARTICLE 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.
ARTICLE 1355
undue influence.
ARTICLE 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.
CHAPTER 4 REFORMATION OF INSTRUMENTS

ARTICLE 1360 ARTICLE 1361 ARTICL 1362

The principles of the When a mutual mistake of If one party was mistaken and the
general law on the the parties causes the other acted fraudulently or
reformation of failure of the instrument inequitably in such a way that
instruments are to disclose their real the instrument does not show
hereby adopted agreement, said their true intention, the former
insofar as they are not instrument may be may ask for the reformation of
in conflict with the reformed. the instrument.
provisions of this
Code.
 ARTICLE 1363
When one party was When through the ignorance,
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.
ARTICLE 1364 ARTICL 1367
When one of the parties has
lack of skill, negligence or brought an action to enforce
bad faith on the part of the instrument, he cannot
the person drafting the subsequently ask for its
instrument or of the clerk reformation.
or typist, the instrument
does not express the true
intention of the parties,
the courts may order that
the instrument be
reformed.
CHAPTER 5 INTERPRETATION OF CONTRACTS

ARTICLE 1370 ARTICLE 1371 ARTICL 1373

If the terms of a contract are In order to judge the intention If some stipulation of any contract
clear and leave no doubt of the contracting parties, should admit of several
upon the intention of the their contemporaneous meanings, it shall be
contracting parties, the and subsequent acts shall understood as bearing that
literal meaning of its be principally considered. import which is most adequate
stipulation to render it effectual.
If the words appear to be
contrary to the evident
intention of the parties, the
latter shall prevail over the
former. ns shall control.
 ARTICLE 1374 ARTICLE 1375 ARTICLE 1377 ARTICLE 1378
The various Words which may The interpretation If the contract is onerous,
stipulations of a have different of obscure words the doubt shall be settled in
contract shall be significations shall or stipulations in a favor of the greatest
interpreted together, be understood in contract shall not reciprocity of interests. If
attributing to the that which is most in favor the party the doubts are cast upon
doubtful ones that keeping with the who caused the the principal object of the
sense which may nature and object of obscurity. contract in such a way that
result from all of the contract. it cannot be known what
them taken jointly.
may have been the
intention or will of the
ARTICLE 1379. The principles of interpretation parties, the contract shall be
stated in Rule 123 of the Rules of Court shall null and void.
likewise be observed in the construction of
contracts.
CHAPTER 6 RESCISSIBLE CONTRACTS

ARTICLE 1380 ARTICLE 1384

Contracts validly agreed
Rescission shall be only to
upon may be rescinded in
the extent necessary to
the cases established by law.
cover the damages caused.
CHAPTER 7: VOIDABLE CONTRACTS

ARTICLE 1390
The following contracts are voidable or annullable, even though
there may have been no damage to the contracting parties:

(1) Those where one of the parties is incapable of giving consent to

a contract;

(2) Those where the consent is vitiated by mistake, violence,

intimidation, undue influence or fraud.
SECTION 3 Contract for a Piece of Work
ARTICLE 1723
The engineer or architect who drew up the plans and specifications for a building is
liable for damages if within fifteen years from the completion of the structure, the
same should collapse by reason of a defect in those plans and specifications, or due
to the defects in the ground. The contractor is likewise responsible for the damages
if the edifice falls, within the same period, on account of defects in the
construction or the use of materials of inferior quality furnished by him, or due to
any violation of the terms of the contract. If the engineer or architect supervises
the construction, he shall be solidarily liable with the contractor.

Acceptance of the building, after completion, does not imply waiver of any of the cause
of action by reason of any defect mentioned in the preceding paragraph.

The action must be brought within ten years following the collapse of the building.
SECTION 3 Contract for a Piece of Work

ARTICLE 1724
Except in cases expressly specified by the law, or when 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, or which, though foreseen, were inevitable.
 NAKPIL & SONS V. CA- LIABILITY
AND FORTUITOUS EVENT
IS NAKPIL & SONS THEN EXCEMPTED IN THE LIABILITY?
NO, they are not exempted from
liability. If upon the happening of a
fortuitous event or an act of God, here
concurs a corresponding fraud,
negligence, delay or violation or
contravention in any manner of the
tenor of the obligation, which results
in loss or damage, the obligor cannot
escape liability.
Nakpins were found to have
inadequacies or defects in the
plans and specifications
prepared by them. The
deviations made by United
caused indirectly the damage
sustained and that those
deviations not only added but also
aggravated the damage caused
by the defects made by the
Nakpins.

Source: https://lawreviewhurjaelubag.wordpress.com/2017/01/25/juan-nakpil-sons-v-court-of-appeals-144-scra-597-g-r-
no-l-47851-october-3-1996/
CHAPTER 9
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;
(2) Those whose object is outside
the commerce of men;

(3) Those which contemplate an

impossible service;

(4) Those expressly prohibited or

declared void by law.
Title III. - NATURAL OBLIGATIONS
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.
Title XIII - ALEATORY
CONTRACTS

GENERAL PROVISIONS
Art. 2010. By an aleatory contract, one of
the parties or both reciprocally bind
themselves to give or to do something in
consideration of what the other shall give
or do upon the happening of an event
which is uncertain, or which is to occur at
an indeterminate time.
Title XIV. - COMPROMISES
AND ARBITRATIONS

CHAPTER 1
COMPROMISES
Art. 2028. A compromise is a contract
whereby the parties, by making reciprocal
concessions, avoid a litigation or put an
end to one already commenced.

Art. 2029. The court shall endeavor to

persuade the litigants in a civil case to
agree upon some fair compromise.
Art. 2030. Every civil action or proceeding shall be
suspended:

(1) If willingness to discuss a possible compromise is

expressed by one or both parties; or
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Art. 2031. The courts may mitigate the damages to be
paid by the losing party who has shown a sincere
desire for a compromise.

Art. 2037. A compromise has upon the parties the

effect and authority of res judicata; but there shall be
no execution except in
compliance with a judicial compromise.

Art. 2038. A compromise in which there is mistake,

fraud, violence, intimidation, undue influence, or
falsity of documents, is subject to the provisions of
Article 1330 of this Code.

However, one of parties cannot set up a mistake of

fact as against the other if the latter, by virtue of the
compromise, has withdrawn from a litigation already
commenced.
Art. 2039. When the parties compromise
generally on all differences which they
might have with each other, the discovery
of documents referring to one or more
but not to all of the questions settled shall
not itself be a cause for annulment or
rescission of the compromise, unless said
documents have been concealed by one
of the parties.

But the compromise may be annulled or

rescinded if it refers only to one thing to
which one of the parties has no right, as
shown by the newly-discovered
documents.
Art. 2040. If after a litigation has been
decided by a final judgment, a
compromise should be agreed upon,
either or both parties being unaware of
the existence of the final judgment, the
compromise may be rescinded.

Ignorance of a judgment which may be

revoked or set aside is not a valid ground
for attacking a compromise.

Art. 2041. If one of the parties fails or

refuses to abide by the compromise, the
other party may either enforce the
compromise or regard it as rescinded and
insist upon his original demand.
 CHAPTER 2
ARBITRATIONS
Art. 2042. The same persons who may enter into a compromise
may submit their controversies to one or more arbitrators for
decision.

Art. 2043. The provisions of the preceding Chapter upon

compromises shall also be applicable to arbitrations.

Art. 2044. Any stipulation that the arbitrators' award or decision

shall be final, is valid, without prejudice to Articles 2038, 2039, and
2040.
Title XV. - GUARANTY
CHAPTER 1
NATURE AND EXTENT OF
GUARANTY
Art. 2047. By guaranty a person, called
the guarantor, binds himself
to the creditor to fulfill the obligation of
the principal debtor in case
the latter should fail to do so.
CHAPTER 2
EFFECTS OF GUARANTY
SECTION 1. - Effects of Guaranty
Between the Guarantor and the Creditor

Art. 2058. The guarantor cannot be compelled

to pay the creditor unless the latter has
exhausted all the property of the debtor, and
has resorted to all the legal remedies against
the debtor.

Art. 2059. The excussion shall not take place:

(1) If the guarantor has expressly renounced it;
Title XVII. - EXTRA-
CONTRACTUAL
OBLIGATIONS
CHAPTER 1
QUASI-CONTRACTS
Art. 2142. Certain lawful, voluntary
and unilateral acts give rise to the
juridical relation of quasi-contract to
the end that no one shall be unjustly
enriched or benefited at the expense
of another.
SECTION 2. - Solutio Indebiti

Art. 2154. If something is received when there is no right to

demand it, and it was unduly delivered through mistake, the
obligation to return it arises.

Art. 2155. Payment by reason of a mistake in the

construction or application of a doubtful or difficult
question of law may come within the scope of the preceding
article.

Art. 2168. When during a fire, flood, storm, or other

calamity, property is saved from destruction by another
person without the knowledge of the owner, the latter is
bound to pay the former just compensation.
Art. 2169. When the government, upon the
failure of any person to comply with health or
safety regulations concerning property,
undertakes to do the necessary work, even
over his objection, he shall be liable to pay the
expenses.

Art. 2171. The rights and obligations of the

finder of lost personal property shall be
governed by Articles 719 and 720.
CHAPTER 2
QUASI-DELICTS
Art. 2176. Whoever by act or omission causes damage to another,
there being fault or negligence, is obliged to pay for the damage
done. Such fault or negligence, if there is no pre-existing
contractual relation between the parties, is called a quasi-delict
and is governed by the provisions of this Chapter.

Art. 2177. Responsibility for fault or negligence under the

preceding article is entirely separate and distinct from the civil
liability arising from negligence under the Penal Code. But the
plaintiff cannot recover damages twice for the same act or
omission of the defendant.

SPS. FERNANDO VERGARA and
HERMINIA VERGARA, Petitioners,
v. ERLINDA TORRECAMPO SONKIN,
Respondent
The RTC Ruling
In a Decision dated January 4, 2007, the
RTC found Sps. Vergara civilly liable to Sps.
Sonkin for damages and directed them: (a)
to scrape the earth and other filling
materials dumped in the adjacent
perimeter wall of the Sonkin Property and
erect a retaining wall in accordance with
the standards of the National Building
Code; (b) to install and provide an adequate
drainage system in accordance with the
same Code; and (c) to jointly and severally
pay Sps. Sonkin P300,000.00 as actual
damages, P50,000.00 as moral damages,
P50,000.00 as exemplary damages,
P100,000.00 as attorney's fees, and costs
of suit. It dismissed all other claims of the
Sps. Sonkin, as well as the counterclaims
of Sps. Vergara, for lack of merit.
 In a Decision dated February 24, 2010, the CA
reversed and set aside the assailed RTC
Decision and entered a new one: (a) ordering
the Sps. Vergara to install and provide an
adequate drainage system on their property to
SPS. FERNANDO VERGARA and prevent the flow of water into the Sonkin
Property, and to pay Sps. Sonkin the amounts of
HERMINIA VERGARA, Petitioners, P50,000.00 as moral damages and P100,000.00
v. ERLINDA TORRECAMPO SONKIN, as attorney's fees; (b) setting aside the directive
to Sps. Vergara to remove the landfill and build a
Respondent retaining wall on their property; (c) deleting the
award of actual damages, as well as exemplary
damages; and (d) dismissing the separate appeal
The CA Ruling of the Sps. Sonkin for lack of merit.

Source: https://www.chanrobles.com/cralaw/2015junedecisions.php?id=443
Art. 2189. Provinces, cities and
municipalities shall be liable for
damages for the death of, or injuries
suffered by, any person by reason of the
defective condition of roads, streets,
bridges, public buildings, and other
public works under their control or
supervision.

Art. 2190. The proprietor of a building

or structure is responsible for the
damages resulting from its total or
partial collapse, if it should be due to
the lack of necessary repairs.
Art. 2191. Proprietors shall also be responsible for damages
caused:

(1) By the explosion of machinery which has not been taken care
of with due diligence, and the inflammation of explosive
substances which have not been kept in a safe and adequate
place;

(2) By excessive smoke, which may be harmful to persons or

property; xxx
Title XVIII. – DAMAGES
CHAPTER 2
ACTUAL OR
COMPENSATORY DAMAGES
Art. 2199. Except as provided by law or by
stipulation, one is entitled to an adequate
compensation only for such pecuniary loss
suffered by him as he has duly proved. Such
compensation is referred to as actual or
compensatory damages.
Art. 2205. Damages may be recovered: xxx

(2) For injury to the plaintiff's business standing or commercial

credit.
CHAPTER 3
OTHER KINDS OF
DAMAGES
Art. 2216. No proof of pecuniary loss
is necessary in order that
moral, nominal, temperate, liquidated
or exemplary damages, may
be adjudicated. The assessment of
such damages, except
liquidated ones, is left to the
discretion of the court, according to
the circumstances of each case.
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