All are required to memorize the following provisions of the New Civil Code:

BOOK IV. OBLIGATIONS AND CONTRACTS

TITLE I. - OBLIGATIONS
Chapter 1: General Provisions
1156 (passive)definition of obligation
1157 (5) sources of obligation
Chapter 2: Nature and Effects of Obligations
1163 diligence required from every person obliged to give something (determinate)
1166 right of creditor to accessions and accessories (of a determinate thing)
1169 delay
when demand by the creditor not necessary
delay in reciprocal obligations
1170 grounds for liability to damages
1171 responsibility arising from fraud: demandable
waiver of action for future fraud
1172 responsibility arising from negligence: also demandable, may be regulated by the courts
1173 fault or negligence
when negligence shows bad faith
if law or contract does not state diligence
1174 exceptions in fortuitous events
general rule: no liability of debtor in fortuitous events
definition of fortuitous events
1177 remedies available to creditors for the satisfaction of their claims
Chapter 3. Different Kinds of Obligations
Section 1. Pure and Conditional Obligations
1179 demandable obligations:
pure obligations
*condition defined
(resolutory) conditional obligation
1181 effect of happening of condition (suspensive/ resolutory)
1184 effect of positive suspensive condition
1186 constructive fulfillment of a condition (suspensive/resolutory): when condition deemed fulfilled
1189 6 rules on improvement, loss or deterioration of a real, determinate, suspensive
1191 power to rescind in reciprocal obligations
choice of remedy in reciprocal obligations: fulfillment or rescission
court shall decree rescission
without prejudice to rights of 3rd persons
Section 2. Obligations with a Period
1193 Kinds of Period:
suspensive and resolutory
a day certain
when conditional
1196 Presumption as to Benefit of Period
Exceptions
1198 5 cases when debtor shall lose every right to make use of a period
Section 3. Alternative Obligations
1199 meaning/effects of alternative obligation: debtor, creditor: completely perform
1200 right of choice belongs to the debtor
Unless expressly granted to creditor
restrictions on choice: not impossible, unlawful or which could not have been the object of the obligation
Section 4. Joint and Solidary Obligation
1207 when there is a solidary obligation; presumption of joint
1208 joint obligation
1212 act of solidary creditor useful/not prejudicial to others (co-creditors)
1214 payment to any solidary creditor
unless demand is made
1218 effect of payment made after the obligation has prescribed or become illegal: not entitled to reimbursement
Section 5. Divisible and Indivisible Obligations
Section 6. Obligations with a Penal Clause
1226 obligations with a penal clause: purpose
when penalty may be imposed
1227 penalty not substitute for performance (only subsidiary)
cannot demand fulfillment and satisfaction of penalty at the same time unless clearly granted
when the performance should become impossible without the creditors fault
1228 demandable without proof of actual damages
1229 when penalty may be equitably reduced by the courts:
partly or irregularly complied
no performance, iniquitous or unconscionable
1230 nullity of penal clause
nullity of the principal obligation
Chapter 4. Extinguishment of Obligations
General Provisions
1231 6 causes of extinguishment and others [ARFP]
Section 1. Payment or Performance
1232 meaning of payment
1235 accepts the performance knowing its incompleteness or irregularity, and without expressing any protest or objection
1236 right of creditor to refuse payment by third person who has no interest;
unless there is a stipulation
demand what he has paid for another
except when without knowledge or against the will, only insofar beneficial
1237 ~right of third person to subrogation (if with consent of debtor)
1241 effect of payment:

MUNBM

to an incapacitated
to a third person
3 cases when benefit to creditor need not be proved
1244 identity of obligations
To give: determinate thing
To do or not to do: cannot substitute another act of forbearance against the obligees will
1245 dacion en pago: nature, governing law vs. sale
1246 medium quality in the delivery of an indeterminate or generic thing
Purpose of the obligation shall be taken into consideration
1251 place where obligation shall be paid (=5)
Subsection 1. Application of Payments
1252 meaning; requisites
When the debtor applies payment
Exception
When the creditor applies payment
Exception
1253 when payment of principal deemed paid
Subsection 2. Payment by Cession
1255 meaning of cession; requisites and exception; effect; vs. dacion en pago
Subsection 3. Tender of Payment and Consignation
1256 consignation: requisites, effect
5 exemptions from valid tender of payment and prior notice
Section 2. Loss of the Things Due
1262 when considered loss
when loss extinguishes obligation or not
1263 effect of loss of a generic thing: not extinguish the obligation
Section 3. Condonation or Remission of the Debt
1270 condonation/remission: requisites
Section 4. Confusion or Merger of Rights
1275 confusion or merger: when and effect (general)
Section 5. Compensation
1278 compensation: when
1279 5 requisites of compensation
1285 assignment of rights:
Before
After
1286 when debts payable at different places: indemnity for expenses of exchange or transportation
Section 6. Novation
1291 novation: kinds
TITLE II. - CONTRACTS
Chapter 1: General Provisions
1305 definition of contracts
1306 freedom to contract guaranteed
limitations
1311 persons affected by a contract (relativity); exceptions
liability of the heir
stipulation pour autri
1314 any third person who induces another to violates: liable for damages
1315 consensual contract: perfected by mere consent, effects
Chapter 2. Essential Requisites of Contracts
General Provisions
1318 essential requisites of contracts; otherwise no contract
Section 1. Consent
1319 meaning of consent: concurrence of offer and acceptance
1324 withdrawal of offer
Exception: option contract ::option period, option money
1325 business advertisements of things for sale: unless it appears otherwise are mere invitations to make an offer
1327 persons who cannot give consent (=4)
1328 lucid interval: valid
state of drunkenness, hypnotic spell: voidable
1330 vitiated of consent: voidable
1331 mistake or error: on substance/object or conditions which have principally moved one or both
Mistake as to identity or qualifications of one of the parties: only when principal cause
Simple mistake: correction
1335 violence: serious or irresistible force
Intimidation: reasonable and well-grounded fear of an imminent and grave evil
factors to determine degree of intimidation: age, sex and condition
threat to enforce a just or legal claim
1336 effect of violence or intimidation even if third person
1337 undue influence: depriving another of reasonable freedom of choice
Circumstance to be considered
1338 dolo causante (causal fraud): through insidious words or machinations
1345 simulation of contracts: 2 kinds
1346 effects of simulated contracts
Section 2. Objects of Contracts
1347 what may be object of a contract (=5)
Section 3. Cause of Contracts
Chapter 3. Form of Contracts
1358 contract which must appear in a public document (=6)
Chapter 4. Reformation of Instruments

MUNBM

Chapter 5. Interpretation of Contracts

Chapter 6. Rescissible Contracts
1380 rescissible contracts: definition
1381 5 cases of rescissible contracts
1382 payments made in a state of insolvency
1383 nature of action for rescission: subsidiary
1387 when alienation is presumed in fraud of creditors:
Gratuitous: when did not reserve sufficient property to pay all debts before donation
Onerous: when against whom some judgment has been rendered or writ of attachment
proved by law of evidence
1389 prescription for filing action for rescission: 4 years
guardianship: from termination of the incapacity
absentee: when domicile is known
Chapter 7. Voidable Contracts
1390 voidable contracts
Characteristics (3): even no damage, annulled by proper action, susceptible of ratification
2 kinds
1391 prescription for filing action for annulment: 4 years
intimidation, violence or undue influence: from the time the defect of consent ceases
mistake or fraud: from discovery of the same
minor or other incapacitated person: from the time the guardianship ceases
1392 effect of ratification: extinguishes action to annul
1393 kinds of ratification: express or implied
When there is tacit ratification
1396 retroactive effect of ratification
Chapter 8. Unenforceable Contracts
1403 3 unenforceable contracts unless ratified
1408 cannot be assailed by third persons
Chapter 9. Void or Inexistent Contracts
1409 7 inexistent and void contracts
Characteristics(3): void from the beginning, cannot be ratified, defense of illegality cannot be waived
1410 does not prescribe, action or defense for declaration of inexistence of a contract
1412 rule on unlawful or forbidden but act NOT a criminal offense
When fault of both
When fault of only one
TITLE III. NATURAL OBLIGATIONS
1423 civil and natural obligations distinguished
TITLE IV. ESTOPPEL
1431 definition of estoppel
1439 parties affected by estoppel
BOOK III. DIFFERENT MODES OF ACQUIRING OWNERSHIP
TITLE V. - PRESCRIPTION
Chapter 1: General Provisions
1106 effects of prescription: acquires and lost
Chapter 2. Prescription of Ownership and Other Real Rights
1132 ownership of movables; personal property; personal property loss, illegally deprived, movables acquired in a public SaFaM/
merchant store
1133 movables possessed through a crime
1134 OORR over immovable property
1137 OORR over immovables also
Chapter 3. Prescription of Actions
1139 actions prescribe
1140 action to recover movables
1141 real actions over immovable
1142 mortgage action
1144 brought 10 years from TROA
1145 commenced within 6 years
1146 institutes within 4 years
1147 filed within 1 year
1149 all other actions whose periods are not fixed
1150 when there is no special provision
1155 when prescription of action is interrupted(3)

MUNBM