COURSE OUTLINE Course Description: An in-depth study of the nature, kinds, effect and extinguishment of obligations;

contracts in general, their requisites, form and interpretation; kinds of defective contracts; and natural obligations, estoppel, trust, and quasi-contracts. (5 units)

I.

LAW ON OBLIGATIONS A. General Provisions: Definition & Sources of Obligation (Arts. 1156-1162)
Sagrada Orden v. NACOCO, 91 Phil. 503

B. Nature & Effect of Obligations (Arts. 1163- 1178) 1. Breaches of Obligations a. Delay
Agcaotli v. GSIS, 165 SCRA 1 Queblar v. Garduno, 62 Phil. 879 SSS v. Moonwalk, 221 SCRA 119 Eastern Shipping Lines v. CA, 234 SCRA 78

b. Fraud
Arrieta v. Naric, 10 SCRA 79 Telefastv. Castro, 158 SCRA 445 Legaspi Oil v. CA, 224 SCRA 213 Go v. CA, 272 SCRA 752 RCBC v. CA, 305 SCRA 449 Metrobank v. CA, 237 SCRA 761

c.

Negligence

d. Fortuitous Event
Nakpil & Sons v. CA, 144 SCRA 596 Sia v. CA, 222 SCRA 24 Tanguilig v. CA, 266 SCRA 78 Dioquino v. Laureano, 33 SCRA 65 Republic v. Luzon Stevedoring, 21 SCRA 279

2. Resolution or Rescission of Reciprocal Obligations (Art. 1191)

Tan v. Court of Appeals, 175 SCRA 656 Velarde v. CA, 361 SCRA 56 Ayson v. Adamos, 131 SCRA 439 UP v. De los Angeles, 35 SCRA 102 De Luna v. Abrigo, 181 SCRA 150 Palay Inc. v. Clave, 124 SCRA 638

3. Breach by both parties (Art. 1192)

Camus v. Price, 5 SCRA 581

C. Different Kinds of Obligations 1. Pure & Conditional Obligations (Arts. 1179-1190)

Pay v. Palanca, 57 SCRA 618 Javier v. CA, 183 SCRA 171 Central Philippine University v. CA, 246 SCRA 511 Lao Lim v. CA, 191 SCRA 150

Trillana v. Quezon College, 93 Phil. 383 Security Bank v. CA, 249 SCRA 206 Romero v. CA, 250 SCRA 223 Naga Telephone v. CA, 230 SCRA 351 Tayag v. CA, 219 SCRA 480

2. Obligations with a Period (Arts. 1193-1198)

Gaite v. Fonacier, 2 SCRA 831 Chaves v. Gonzales, 32 SCRA 547 Radiowealth Finance v. Del Rosario, 335 SCRA 288 Gregorio Araneta Inc. v. Phil. Sugar Estates, 20 SCRA 330

3. Alternative Obligations (Arts. 1199-1206) 4. Joint & Solidary Obligations (Arts. 1207-1222)
Ronquillo v. CA, 132 SCRA 274 Republic Planters Bank v. CA, 216 SCRA 738 Un Pak Leung v. Negorra, 9 Phil. 381 Quiombing v. CA, 189 SCRA 325 Inciong v. CA, 257 SCRA 578 Imperial Insurance v. David, 133 SCRA 317 Braganza v. Villa Abrille, 105 Phil. 456

5. Divisible & Indivisible Obligations (Arts. 1223-1225) 6. Obligations with a Penal Clause (Arts. 1226-1230)
SSS v. Moonwalk, 221 SCRA 119 Jison v. Court of Appeals, 164 SCRA 339

D. Extinguishment of Obligations

1. General Provision (Art. 1231)

People v. Jose, 71 SCRA 273 Torrijos v. CA, 67 SCRA 394

2.

Different Modes of Extinguishment a. Payment or Performance (Arts. 1232-1261)

i. When obligation is understood paid or performed Pagsibigan v. CA, 221 SCRA 202 Esguerra v. Villanueva, 21 SCRA 1314 Tayag v. CA, 219 SCRA 480** ii. Payment by a third person Tanguilig v. CA, 266 SCRA 78** iii. To whom payment must be made BPI v. CA, 232 SCRA 302 iv. Dacion en pago Caltexv. IAC, 215 SCRA 580

OBLIGATIONS AND CONTRACTS

Atty. Fretti Ganchoon
Barons Marketing v. CA, 286 SCRA 96 vi. Legal Tender Gutierrez v. Carpio, 53 Phil. 334 vii. Foreign Currency C.F. Sharp & Co. v. Northwest Airlines, 381 SCRA 314 viii. Extraordinary Inflation or Deflation Filipino Pipe & Foundry Corp. v. NAWASA, 161 SCRA 32 Singson v. Caltex, 342 SCRA 91 Velasco v. Manila Electric Co., 42 SCRA 556 ix. Application of payment Espina v. CA, 334 SCRA 186 x. Tender of payment & Consignation Soco v. Militante, 123 SCRA 160 De Mesa v. CA, 317 SCRA 24 Vda. De Quirino v. Palarca, 29 SCRA 1

b. Loss of the thing due (Arts. 1262-1269)

i. Impossibility of performance PNCC v. CA, 272 SCRA 183 ii. Relative impossibility PNCC v. CA, 272 SCRA 183 Naga Telephone v. CA, 230 SCRA 351** Magat v. CA, 337 SCRA 298

c.

Condonation or Remission (Arts. 1270-1274)

d. Confusion or Merger of Rights (Arts. 1275-1277) e. Compensation (Arts. 1278-1290)

Republic v. Mambulao Lumber Co., 4 SCRA 622 Ong v. CA, 177 SCRA 402 PNB Madecor v. Uy, 363 SCRA 128 Miailhe v. Halili, 6 SCRA 453 Perez v CA, 127 SCRA 636 Sesbreno v. CA, 222 SCRA 466 Mindanao Portland Cement v. CA, 120 SCRA 930

f.

Novation (Arts. 1291-1304)

Ajax Marketing v. CA, 248 SCRA 222

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A. General Provisions (Arts. 1305-1317) 1. Characteristics of Contracts a. A u t o n o m y of Contracts Azcuna v. CA, 255 SCRA 215 Pakistan International Airlines v. Ople, 190 SCRA 90 De Leon v. CA, 186 SCRA 345 b. Mutuality of Contracts Garcia v. Rita Legarda, Inc., 21 SCRA 555 Allied Banking Corporation v. CA, 284 SCRA 357 c. Relativity of Contracts DKH Holdings v. CA, 329 SCRA 666 Marmont Resort Hotel v. Guiang, 168 SCRA 373 Mandarin Villa, Inc. v. CA, 257 SCRA 538 Young v. CA, 169 SCRA 213 2. Innominate Contracts Corpus v. CA, 98 SCRA 424 B. Essential Requisites of Contracts (Art. 1318) 1. Consent (Arts. 1319-1346) a. Character of offer and acceptance Jardine Davies v. CA, 333 SCRA 684 b. Option Ang Yu Asuncion v. CA, 238 SCRA 602 Serra v. CA, 229 SCRA 60 c. Incapacitated persons Braganza v. De Villa Abrille, 105 Phil. 456** d. Vices of consent Spouses Theis v. CA, 268 SCRA 167 Arriola v. Mahilum, 337 SCRA 464 De Leon v. CA, 186 SCRA 345 Marubeni Corporation v. Lirag, 362 SCRA 620 e. Simulation of contract Velasquez v. CA, 345 SCRA 468 Francisco v. Francisco-Alfonso, 354 SCRA 112 2. 3. Object (Arts. 1347-1349) Cause (Arts. 1350-1355) Razon v. Philippine Ports Authority, 151 SCRA 233 Auyong Hian v. CTA, 59 SCRA 110

I Willi UI v ^ u i l l l d U l b \ M r i S . 1 ^ D b - 1 3 5 b )

Dauden-Hernaez v. De los Angeles, 27 SCRA 1276 Dalion v. CA, 182 SCRA 872

D. Reformation of Instruments (Arts. 1359-1369)

Atilano v. Atilano, 28 SCRA 231

E. Interpretation of Contracts (Arts. 1370-1379)

Buce v. CA, 332 SCRA 151 Pingol v. CA, 226 SCRA 118 Castelo v. CA, 244 SCRA 180

F. Defective Contracts a. Rescissible Contracts (Arts. 1380-1389)

Bobis v. Provincial Sheriff of Camarines Norte, 121 SCRA 28 Air France v. CA, 245 SCRA 485 Provincial Sheriff of Pampanga v. CA, 22 SCRA 798

b. Voidable Contracts (Arts. 1390-1402)

Miailhe v. CA, 354 SCRA 675 Yao Ka Sin v. CA, 209 SCRA 763 Malabanan v. Gaw Ching, 181 SCRA 84

c.

Unenforceable Contracts (Arts. 1403-1408)

Berg v. Magdalena, 92 Phil. 110 Limketkai Sons Milling, Inc. v. CA, 250 SCRA 523 Paterno v. Jao Yan, 1 SCRA 631 Rodriguez v. CA, 29 SCRA 419

d. Void and Inexistent Contracts (Arts. 1409-1422)

Cui v. Arellano University, 2 SCRA 205 Arsenal v. IAC, 143 SCRA 40 Angel Jose v. Chelda Enterprises, 23 SCRA 119 Lita Enterprises v. IAC, 129 SCRA 79 De Leon v. CA, 186 SCRA 245 Ras v. Sua, 25 SCRA 153

III. NATURAL OBLIGATIONS (Arts. 1423-1430)