Beruflich Dokumente
Kultur Dokumente
1. Art. 1156: Why is there not to give? (already in the phrase not to do)
2. What are the essential requisites of an obligation?
3. Are all obligations legally demandable and enforceable? (No, only civil obligations are legally
demandable. Natural obligations are not legally demandable.)
4. How do civil obligations differ from natural obligations?
5. What are the sources of civil obligations? (Art. 1157) Is it an exclusive enumeration?
6. If all civil obligations can be enforced by means of a court action then all civil obligations arise from
lawtrue or false? False (Pg.8, Manresas differentiation.)
7. When do you say that the law itself is the source of the obligation and when do you say that it is
created from another source or how do you determine the source of the obligation? (Pg.8,
Manresas differentiation.)
8. What is a quasi-contract? (Pg. 10)
9. What is a quasi-delict? (Pg. 20)
10. What is a contract? (Pg. 8)
11. Can there be an obligation when there is only one party? NO
12. Pelayo vs Lauron (Case arising from law)
13. Macasaet vs. COA (Doctrinal Case of Art. 1159)
Supra demanded an escalation cost for the increase of materialsMacasaet also demanded
7%
of the additional because the 7% must be based on the final actual cost of the project (stipulated in
the contract). Decision was in favor of Macasaet.
14. Agcaoili vs. GSIS (Exception to Article 1159) the SC did not apply the rule of 1159 on obligations
arising from contract. Increased prices of materials during pendency of case does not make it
equitable to strictly apply the contract stipulations. The court ruled to give Agcaoili the lot and the
house
15.Barredo vs Garcia the scope of quasi-delict was extended to acts which are punishable by the
Revised Penal Code.
16.Elcano vs. Hill the Supreme Court broadened the scope of quasi-delicts up to acts which are
involuntary etc.
17.Air France vs. Carrascoso mere breakage of contract can be classified as quasi-delict. A
person, against his will, forced to transfer from Economy class to Business class can also file a suit
for breach of contract
1. What is meant of a diligence of a good father of a family? -standard of care in roman law
ordinary diligence. exercised in the absence incase of absence of stipulation in the contract or
the law.
2. Would it apply to a generic object? (no because generic thing does not perish.) - There is
no risk of loss from the genus of the object.
3. 1163 is a guaranty that the debtor will comply with the obligation.
The land owner and BMMC will not be renewed anymore yet BMMC still contracted with the 3 rd
person.
13. What is the difference between the previous case and that of Philcom Sat vs. Globe Telecom? (In
Philcom Sat vs. Globe Telecom, there was a stipulation in the contract Section 8 that incase of
non-ratification of the senate, it will be considered a fortuitous event.)
14. Co vs. CA (Discussed in class)
15. Southeastern College vs. CA (Discussed in class...doctrinal case) negligence on the part of the
school was not properly made or introduced.
16. 1176 simply raises presumptions under payment.: 1st presumption (Reason: logical presumption
because the payment is usually deducted to the interest first before to the principal otherwise it
would be prejudicial to the creditor If the payment would be deducted first to the principal; 2 nd
presumption: MTSC vs. Medina)
17. 1178 basic rule on transmissibility
18. The most fundamental classification are pure and conditional obligation.
19. Pure if it is not subject to any condition and term or period. (demandable at once or immediately
but it must give a reasonable amount of time)
20. Condition (pg. 105 Jurado)
21. How can a past event constitute as a condition? (the proof or the ascertainment may constitute a
condition because it may satisfy the elements futurity and uncertainty) futurity and uncertainty
are elements of a condition.
22. The quality of uncertaintyis the difference of term or period and condition. A term will surely pass
or happen but not know when.condition may or may not pass or happen.
23. A term or period may either be suspensive(give rise to a oblig) or resulatory(extinguishment of
oblig).
24. Park vs. Province of Tarlac (the nature of the condition is if the condition is of such nature is such
that the condition may not be fulfilled without transmission of right, there for the condition is
resulatory. why? - )
25. Take note of article 1180.
26. 1182 very important provision (Memorize!!!!). refers to the obligations which are
potestative on the part of the debtor.
27. Why is the obligation void in 1182? (The law abhors illusory kinds of obligation because there is no
actual obligation.)
28. Simple potestative and purely potestiativewhat the law prohidbits is the purely potestative
conditions. But if simple potestative condition we can recognize its validity.
29. Simple potestative is a condition that presupposes not only the will but the realization of an
external act. Example: right of 1st refusal in real estate(when I decide to sell my house I will ).
30. In connection with art if the oblig is made a suspensive and potestative on the part or the creditor
is validthere will be no illusonary kind of obligation because the creditor will certainly be
interested.
31. You do not apply art 1182 to a pre-existing obligation. (Important! Remember!!!!!)
32. Hermosa vs. Longara (Discussed in class it is a mixed condition.)
33. Smith, Bell and Co. vs. Sotelo Matti (Discussed in class the principle of substantial compliance
article 1234)
34. Lao limif there is a provision in the contract that the lessor can keep using the property as long as
his means can permit himit violates the rule on mutuality of a contract.
35. Rustan Mills(Discussed in class)
36. Security Bank vs. CA (Discussed in class) mutual agreement that was stipulated in the contract
for payment of additional costSC said its potestative on the part of Security Bank.
37. Impossible conditionsarticle 1183...
38. When is the possibility or the impossibility determinedshould be determine at the time the
obligation is madeif at the time of the birth of the obligation the condition is impossible then the
obligation is void-because by agreeing in an impossible condition shows that there is no seriousness
or intent on the part of the debtor to be really bound. Different in testamentary conditionsthese
impossible conditions are disregarded or ignored.
39. 1184-85 deal with positive and negative condition
40. Positive condition if the condition has become indubitable that the event will not take place, the
obligation will be extinguished.
41. Negative the condition is that the event will not take place
42. The rule on constructive fulfillment1186 the debtor voluntarily prevents the fulfillment of the
condition requisites: (1) an intent to prevent the fulfillment (2) actual prevention of the condition.
(Example: Lauingco, Papio, Portrait, rape)
43. 1187 effects of the fulfillment of a conditional obligation to givethere is a retroactivity to the
moment of the constitution of the obligation it is as if the obligation is fully effective from the
moment the obligation was perfected. (e.g. obligation was contracted 11/2/1995, condition fulfilled
11/10/2001, it is as if the obligation was full effect from the time of the constitution of the
obligation-why does the law provide for retroactivity: because the condition is merely accidental
element in the obligation. But the law gives a rule of mutual compensation of fruits and interest, in
unilateral obligation the debtor will appropriate the fruits and interest)
44. 1188 (1) rule to protect the creditor (2) deals with the debtor; In relation to the 2 nd rule where the
debtor mistakenly pays the creditor, he is entitled for reimbursement from the creditor along with
fruits and interest because it would be absurd if the law will not allow the recovery of fruits and
interest in a obligation subject to a condition where the fulfillment of which is uncertain when it
allows the recovery of fruits and interest in an obligation subject to a period where the occurring of
such is very certain. (see article 1195)
1. What are the rules which should be observed when the object of the obligation is loss deteriorates, or
improved? (Article 1189 MEMORIZE!!!!!!)
2. What are the rights entitled to the debtor as usufructuary? The debtor will have the same right as a
usufructuary with respect to the introduction of improvements .
3. Necessary expenses are those which are expenses which are necessary for the preservation of the
thing. (See other rights pg. 129 Jurado)
4. Useful improvements - This are improvements which increase the value or the utility of the thing
(fence around the property)
5. When is a thing considered lost (art 1189 no. 2)
6. When would a thing be considered to have gone out of commerce?(when it is impossible to legally
transfer or acquire the thing)
7. What is the basic pre-condition before rescinding a contract?
8. How can you be held liable when you in fact dont have the obligation to deliver the thing until the
condition is fulfilled? (Basic assumption in 1189: You cannot be held liable for damages until the
condition is fulfilled.)
9. Article 1190 deals with resolutory condition. (Apply the same rules as in Article 1189.)
10. There is an obligation of mutual restitution under art. 1190 to return to each other what were given.
Are they obliged to return fruits and interest as well? (Yes, because every single trace of the
obligation are obliterated because as a result of the occurrence of the condition will render that it is
as if there was no obligation at all.)
11. Article 1191 (One of the more important provisions!!! MEMORIZE!!!!!!!)
12. Even if there is no express stipulation in the contractthe power to rescind is always implied upon
non-compliance of the obligation. (As long as the obligation is reciprocal in character the power to
rescind is implied.)
13. When are obligations are considered reciprocal?
ANS: (1) Created or established at the same time, (2) out of the same cause, (3) resulted in Mutual
relationship of creditor and debtor between the parties.
14. Songcuan vs. Alviars (Discussed in class) the obligation would only be reciprocal if they dependent
upon each other obligation. In the case
15. Can there be partial fulfillment or rescission under article 1191 (Yes, case in point, Central Bank vs.
CA discussed in class there was rescission on the unreleased P63,000 part of the loan.)
16. Ayson Simon vs. Adamus discussed in classreiterates where a injured party can opt for the
rescission of the obligation even if he already chose the fulfillment in cases where the fulfillment
would become impossible.
17. Basic rule in rescission of reciprocal obligation is that there must be breach on one of the parties. And
the breach must be substantial in character. A casual or slight will not suffice a rescission.
18. Sung Fo and Co. vs. mere slight or casual breach of contract or obligation will not suffice rescission
of obligation
19. Roque vs. Lapuz (Discussed in class) why was the breach considered substantial? - because the
agreement of the parties was to pay in 120 installment payments but the defendant only paid 4
installments so it was considered substantial.
20. Whether there is provision in the contract can recission be made whether judicial or extrajudicial if the breach is merely slight? (No, the breach must be substantial as to defeat the very
object of the obligation.)
21. If there is no provision in the contract the injured party must go to court but if there is provision
in the contract the injured party can recind extra-judicially. The decision of recission of the
injured party can be questioned in court by the other party. (Notice is always required.) There
are two possibilities: 1. to accept the decision of the injured party; and 2. to question the basis
of the recission.
22. Angeles vs.Calasanz discussed in class (the breach is merely slight in characterthe recission
was not realy justified.)
23. Barredo vs. Leanio discussed in classthere was no basis for recission because the breach
was merely slight in character because the buyer already paid P200,000 to the seller.
24. Palay vs. Clave Discussed in classthere was no notice of the recision
25. Contract of adhesions - Is one where the provisions come from only one of the party.
26. Damages can be recovered in either case A entered in to a contract with b for the use of the
property for a period of 5 years with a rent of certain amount. For 6 months non payment by A
can B recover damages for the remaining years? No, because only damages which are
compatible with the idea of recission may be awarded. (See pg. 137 Jurado)
27. What is an obligation with a period? (See pg. 140 Jurado last paragraph)
28. When is a period suspensive? When is it resulotory? (See pg. 141 Jurado last paragraph)
29. I will pay you as soon as possible- is it subject to a condition or a period? Period under Art. 1197
30. What is an acceleration clause it is a clause where upon default of the debtor with one or
more payment will make the whole obligation demandable.
31. Victorias Planters vs. Victorias Milling Company (Discussed in class see pg. 144 Jurado)
caso fortuito excuses you in the fulfillment of obligation therefore you dont
have to make up for it.
32. Article 1194 in passing onlynot so important
33. Article 1196 general rule is that the period is established for the benefit of both.
34. Article 1197 The phrase Once fixed by the courts, the period cannot be changed by them
35. Prescription cannot be waived. In counting the prescription period , the first 10 years will not be
countedthe 10 year period will start after the first 10 year period.
36. Exemption from the general rule that the court will only fix the period and the courts will fix the
period and have a specific performance: (1) When the evidence would be the same for the fixing
of a period and specific performance. (2) When the purpose of the fixing of the period is to
simply delay. Borromeo vs. Court of Appeals (Very Important Case!!!!)
37. When does the debtor lose the right of the benefit of the period? (Article 1198)
38. A mere attempt to abscond will immediately lose the benefit of a term or a period.
39. In case of loss it doesnt matter whether the cause was caso fortuito or due to the fault of the
debtor.
40. Incase of impairment the debtor will lose the benefit of the term or period if it was caused at his
fault.
41. Gaite vs. Fonacier
19. Solidary vs. Sole debtor Sole debtor is more onerous according to Tolentino(Idol ni Sir!ahaha)
January 24, 2008
1. Why the law require a previous tender of payment? If the creditor accepts the tender of payment
there would be no need for further action since the obligation is deemed to have been
extinguished.
2. Consignation without a previous tender of payment is allowed in 1256 of the civil code. (5
exceptions)
3. Problematical: refuse to issue a receipt without a just cause(by itself will mean that there would be
a previous tenderone possible situation is even before can make a tender of payment the creditor
makes it clear that he will not issue a receipt.(reasonable way of interpreting)
4. Actuall offering to the creditor the thing which is due...(if money, offer legal tender-must be the
exact amount of the obligation otherwise it will not be a valid legal tender)
5. Roman Catholic vs Malolos. the mere fact that, there must be actual, positive/clear act and
unconditional
6. Special Requisites for a valid tender of payment and consignation memorize!!!!
7. Why does the law require previous notice before consignation? - to give the creditor time to reconsider his decision.
8. How do you deposit the thing with the court? file a case againts the creditor (state the compliance
of requisites for a tender of payment and consignation.) at the same time he will be deposit the (in
properties, deposit the title to the court and have them appoint a receiver; receiver person
appointed by court to take care of the property.)
9. Why does the law require a second notice? To give the creditor time or opportunity to re-consider.
10. If the creditor in his Answer he prays that the thing be adjudicated in his favor it means there is
already acceptance on the part of the creditor.
11. Release under article 1261 means only in solidary co-debtors and they are only released only in
solidarity and not on their respective shares.
12. Rural Bank of Caloocan vs CA discussed by sir. a departure on a strict compliance in the
requisites in a valid
13. The requirements for a valid payment and special requirements must be complied with in order to
have a valid tender of payment and consignation.
14. What is loss?
15. Can generic object perish? No
16. If the object of the obligation is lost the obligation is extinguished
17. When may the debtor be held liable?
18. A obliged to deliver to B a wrist watch, it was robbed. Is A liable? no you are not liable because in
robbery there is risk to ones life. In theft chances are you will be negligent, therefore you are liable.
19. What is the effect of loss in reciprocal obligation?
20. A to render some service to B and B to A as well. Without Bs fault his service has become
21. Tolentino: if one of the reciprocal obligation is extinguish the other must also be extinguished. This
is deducible from articles 1504 incase of the sale of personal property if prior to delivery the thing
is lost there is no obligation to deliver the price, Article 1655 in a contract of lease if the object
being lease is lost the obligation is extinguished, a contract for a piece of work if the thing is lost
the contractor has no right to receive payment this is under Article 1770; JBL Reyes even if one of
the obligation is lost through caso fortuito the other remain, under 1191, exceptions the same 3
articles cited by tolentinoin the civil code. sir is inclined with the view of tolentino xempre!!!!
22. What is the effect of partial loss it depends upon the circumstances surrounding the obligation.
(Fighting Cock one of whose legs is injured is considered equivalent)
23. Exception to article 1265 - in cases of natural calamities
24. Labayen vs. Talisay-Silay Miling Co. discussed by sir.
25. 1266 by its very own terms refers to an obligatio to do therefore it does not covers to givePNCC
vs CA discussed by sir. Dummy corporation of marcos-cannot invoke 1266 because their
obligation is to give, the article is for obligation to do, 1267 is invoked aswell but you can only use
1267 in absolutely very exceptional circumstances so that equity would demand that one of the
parties would be released. in under case the case NAGA tel co. vs CA the court accepted article
1267 for the reformation of the contract and damages. When parties to an agreement the basis is
the circumstances when they contracted the obligationSC allowed the reformation. General Rule
is good, only under exceptional circumstances that there may be recourse to the equitable principle
under 1267.
protects the rights of A. And Article 1287 prohibits compensation. In a contract of depositum the
depositor can set up compensation while the dopsitory cannot. In a contract of commodatum, the
lender can set up compensation while the borrower cannot set up compensation. In a contract
arising from crime, the offender cannot set up compensation while the offended party can.
Therefore it is facultative in nature since only one of the parties can set up compensation.
18. If one of the parties has the benefit of the term or the period is also considered facultative in
nature.
19. D owes C 12K. C owes E 12k. E owes D 12k. All of this debt are due and demandable. Will there be
legal compensation? None of the parties are bound to be principally debtors and creditors of each
other.
20. D owes C 12k. E is Guarantor. C owes E 8K. Can D set up legal compensation? No because D is not a
creditor of C, E is the one who is owed by C
February 5, 2008
1. What would be the consequence if the creditor assigns his rights to a third person? (see Article
1285)
2. What is novation? (see pg. 323 Jurado)
3. How does novation differ from other modes of extinguishing an obligation? it extinguishes an
obligation and at the same time gives birth to a new obligation.
4. When is the novation: Objective change the object or subject; Subjective change/substitution of
the person of the debtor or creditor. Mix obvious ba?ehehe
5. When is it partial/total and when is it modificatory/extinctive? See pg. 326
6. When is it express, when is it implied? See pg. 325 Jurado
7. Reference to no. 6 the equivocal declaration is for the extinguishment of the old obligation.
(declaration in unequivocal terms)
8. The incompatibility must be real and on every point they must be incompatible to each other
otherwise both obligation must be complied with.
9. A owed B 1M, under a different contract
10. A shortening of the period would amount to a drastic change in the object in novation.
11. What are the requisites of novation?
12. When would there be novation even if without the consent of all the parties? Expromission. Orig
debtor not necessary
13. When is there expromision and delegacion? And how do they differ? (see pg. 336 - Jurado)
14. There can never be substitution without the consent of the creditor.
15. A borrowed money from B and pay 6% interest per annum until the debt is fully paid. Later parties
agreed to increase the interest to 8%, is there an extinctive novation? SC agreement in payment of
higher interest does not result in an extinctive novation, it merely modificatory in the absence of
certain circumstances.
16. A entered into agreement of promissory note to B. A issued a check, is there novation? No because
the check and promissory note can stand together.
17. A borrowed 5M from B with mortgage of H&L. Later the chattel mortgage the car of A. Is there
novation? The mere giving of additional security does not give rise to novation since the two
securities do not contradict each other.
18. A is defendant in a case which B filed. The court ordered A to pay B 1M. The judgment was final and
executory. A pleaded extension of time to B and agreed. Signed an agreement and mortgage of
land of A. Is there novation? No. because the two contracts can stand together.
February 7, 2008
1. If there is merely an increase in the interest, extension time, additional security, change in the
signatory if the contract involves a construction of a building and there is slight alteration there
is no novation.
2. Reduction of time there is novation since there is substantial change in the principal condition of
the obligation.
3. Ajax marketing vs. CA discussed in class. there was no novation, petitioner merely became a
co-debtor or surety.
4. Differentiate the previous case with the spouses florante vs. bautista. there was a stipulation
on the 2nd promissory note that it will cancel the previous promissory note.
5. What are the requisites of novation stated in the previous case?
6. A borrowed 1M from B, The debt will be paid not later than Dec. 1 2007, sometime in November
2007 C went to B and told that if B will agree C will pay As debt, is there substitution of
debtors? No, because there is no indication that there is agreement for the release of
the old or original debtor. He becomes a co-debtor or depending upon the
circumstances he becomes a surety.
7. A owes B 1M. C went to B and told him that let me be the one to pay the liability of A and
release the latter from his liability is there substitution of Debtor? Yes, expromission. Supposing
that when the debt becomes due C did not pay because insolvent, can B proceed against A? No,
because there is already expromission. (see Art. 1294)
8. Assume this time the initiative still came from C but it was done with the knowledge of A, in the
presence of A, C told B that let me be the one to pay the liability of A and release the latter
from his liability when the debt became due C could not pay? Yes, even if it was done
through expromission but if done with the knowledge of the old debtor the
insolvency will revive the old obligation of the old debtor. (see pg. 342 Jurado, last
part of 3rd paragraph )
9. Assume that what happen was delegacion. A with C went to B and offered substitution of debtor
and B agreed. When the debt became due and demandable C was insolvent only after
substitution but before the debt become demandable, can B proceed against A? No, because
the insolvency must have occurred during the time the substitution occurred and it
must be of public knowledge or known to the original debtor.
10. Supposing C was already insolvent at the time and was public knowledge and known to A and B,
and B accepted, can there be revival of the obligation of A? No, he is estopped from doing so by
his acceptance.
11. Same problem delegacion parin daw, when the time for payment came this time there was no
insolvency, C simply refuses to pay. Can B proceed against A? No because only insolvency
existing at the time of the delegation (when it is of public knowledge or known to the debtor at
the time of delegation) is the ground for revival of obligation.
12. 1294 (expromission), if the substitution is with knowledge and consent of the original debtor,
the correct and logical interpretation is as long as the substitution was done thru expromission
upon the initiative of the debtor whether or not it was done with the consent of the old debtor
(reconcile notes of fhortz and joeyhindi ko nakuha eh)
13. What is the general rule? Obligation is extinguished the accessory obligation will be
extinguished except: last part of article 1286. What is the reason for this provision (1296)?
14. D borrowed 100k from C, G agreed to be a guarantor for the debt. Before the maturity of the
debt D proposed to C that X will take his place as debtor. X and C agreed, delegacion, will G
remain liable? If he did not give his consent he should not be liable.
15. 1297 simply reiterates the requisites for a valid novation where there must be a valid old and
new obligation.
16. 1298 deals where the old obligation is void.
17. A gambled with B. A lost 10k to B and issued a PN. Later on, A entered into an agreement
instead of paying 10k A will deliver a ring. Will there be a valid novation? No, because the old
obligation is void there can be no novation.
18. Supposing that this time A entered in to a contract whereby A obligated to deliver to B a
particular car however your consent is vitiated. Later the 2 nd contract instead of delivering the
car A will deliver a particular diamond ring. Is there a valid novation? Yes, because the old
contract is voidable, by entering into the new contract the old contract is cured by the implied
waiver of right of A to declare the nullity of the old contract.
19. Assume the original obligation is subject to a condition and the new condition is also subj to a
different kind of condition. Supposing the condition attached to the old oblig is fulfilled is there a
valid novation? No because the 2nd contract is not valid since the condition is not fulfilled.
20. Assume this time that the condition of the new condition is fulfilled and not the old obligation
will there be novation? No because the old obligation cease to exist with the non fulfillment of
the condition.
21. Supposing the conditions are incompatible, which should be fulfilled, which will be fulfilled? The
condition of the new obligation must be fulfilled.
22. If the original obligation is subject to a condition and the new oblig does not say anything about
any condition. Is the new condition subject to the same condition? Yes, article 1299 because if
the condition is not fulfilled you dont even have a valid novation
23. What are the types of subrogation?
February 12, 2008
1. What is a contract? see article 1305, pg. 351 Jurado
2. Can there be a contract if there is only one party? Why? No. There must be always at least two
person/parties. There can be more than two.
3. What about this autocontracts, are they not en exceptions with respects to the number of parties
required? (see pg. 354 Jurado, 1st paragraph) in reality there are still two parties involve in the
contract.
4. Marriage is a special contract, how does it differ from an ordinary contract? (see pg. 352 Jurado)
5. What are the stages in the life of an ordinary contract?
6. What is the contract implied in fact? (defined in UP vs. Philab); what were the peculiar facts and
circumstances that evidenced that there is actually contract implied in fact in the UP case?
7. What are the fundamental characteristics of contracts? (see pg. 354 Jurado)
8. Autonomy of contracts, generally, under article 1306, the parties can stipulate anything provided
see the article
9. When is a stipulation or a contract contrary to morals?
10. Supposing A borrowed 1M to B, instead of paying interest A agreed to cohabit with B. Is it contrary
to public morals? Yes
11. When is an agreement contrary to good customs? How does morals differ form good customs?
12. What is a custom?
13. When is a contract considered contrary to public policy?
14. Is actual to injury necessary for a contract to be considered contrary to public policy? No, mere
tendency is enough
15. Ysmael vs. Barredo (case is in the book pg. 362 Jurado) how can that agreement possibly injure
the common good? it would allow the shipping company to take whatever they want and show
that it is lost and the shipper will just be compensated to a much lower price.
16. Sy Suan vs. Regala (case is in the book pg. 365 - jurado) what did the SC say was the possible
injury could there be? the employment of intermediaries will cause graft and corruption, it is
sufficient that the mere tendency exist for the contract to be struck down for being contrary to
public policy.
17. Cui vs. Arellano University (case in the book pg. 366 - Jurado) scholarships are not suppose to
use as usiness gimmicks to attract brillan students and keep them in the said school.
18. Leal vs. IAC what was the provision which was contrary to public policy? that if the buyer would
want to sell the property he would have to sell the property to the seller and for the same price.
contrary to public policy because it amount to unrestricted perpetual restriction of right of
ownership.
19. Ferrazzini vs. Gsell (case in the book pg. 363 - Jurado) against public policy because it is a
restriction of trade and if the petitioner would want to make a living he has to go abroad. Thus it is
undue and unreasonable.
20. Del Castillo vs. Richmond (case in the book pg. 364 Jurado) what is the difference bet. The case
in no. 19? at that time legaspi was just a municipality and has a little population which is
insufficient to for more drug stores. there must be a limitation as to time and place considered
reasonable.
21. Ortigas and Co. vs. Fiate Bank the exercise of police power by the state cannot be limited by a
contract, there is a reservation for the state for the exercise of police power.
22. Trias vs. Grogorio Araneta
February 14, 2008
1. When is a contract considered nominate/innominate? (see pg. 357 - Jurado)
2. Memorize 4 latin innominate contracts (pg. 367 -Jurado)
20. Assumed that A did not owe anything to C, would there still be stipulation pour autrui? a
stipulation pour atrui may involved where a contracting party owes a 3rd person and agreed that he
benefited, or where it is purely gratuitous.
21.Who can ask for the revocation of the stipulation? All the parties. Can one party revoke the
stipulation? No, there would be no mutuality. Kauffman vs. PNB stated who can revoke the
stipulationthat would be both parties or the party who caused the stipulation.
22. Coquia vs. Fieldmans Insurance Company (case in the book pg. 381 Jurado) Stipulation pour
autrui
23. A forced heir who is entitled to a legitime may sue for the annulment of the contract if it was to
defraud him, the heir is in the same chair as a defrauded creditor. Concepcion vs. Sta. Ana
24. Uy vs. Leonard, there is merely an incidental benefit and not a stipulation pour autrui. There was no
deliberate confermentread carefullyvery scholarly daw sabi ni sir (Why were the
material name mensioned if there was no deliberate conferment to the materialmen? Because was
only by way of extreme causion because there were certain provision of the civil code which makes
the owner of the land liable to the material men. But there was no deliberate conferment of benefit)
25. Remember the requisites for liabilityunder article 1314.
26. Malice in the sense of ill-will is not required but malice in the sense of no legal justification is
required.
27. Rule of consensuality of contracts
28. Article 1317: you dont apply 1317 if the contract was not entered into in the name of another.
Example: A owned a car and B sold it to C without As consent. 1317 would not apply because B
entered into a contract in his own name.
Sanches vs, rigos 45 scra368
Natino vs. iac 197scra323
Guzman bucaling and co vs bonavie 86150 march 2,1992
Ang yu asuncion vs ca 109125 dec. 2 1994
Equatorial realty vs. Mayfair theater 106063 nov 21 1996
Until article 1324
February 19, 2008
1. The law specifies that the offer must be certain and absolute. If it is not absolute or varies in any
degree or it does not fit exactly with the offer it would constitute a counter offer. counter- offer
needs an unqualified acceptance.
2. The acceptance must be a mirror image of the offer.
3. Limketkai vs. CA
4. A wrote a letter to B offering to sell to the latter 100 bottles of Red wine and A replied agreeing to
the price but he would like to buy 400 bottles- amplified acceptance in the case of an amplified
acceptance there will be a perfected acceptance with regards to the offer
5. Can there be a perfected offer made to a public at large? Yes, if a seller published the offer..what is
the basis of the obligation? the better view of the obligation is a contract because that member of
the general public and did the act generated from the offer accepted the offer.
6. Sometimes the acceptance maybe made to letter or telegram(article 1319 2nd paragraph), when
is it perfected? from the moment the acceptance comes into the knowledge of the offeror.
7. Expedition theory, Reception theory, cognition theory, manifestation theory it is the cognition
theory which we follow in contracts. (see pg. 398 - Jurado)
8. Even under the cognition theory the rule of constructive knowledgeis applicable, even if the offeror
has no knowledge the contract could
9. A wrote a letter to B offering to sell his lot for 5M. B decided to accept the lot and wrote a letter.
Delivered on dec. 1, A was having a 2nd thoughtwhen the letter was delivered A did not opened
the letter instead wrote a letter of withdrawalapplying the rule of constructive knowledge there is
a perfected contract.
10. Assume A was in manila and B in AC, A wrote a letter same offer as in prev. no. B decided to accept
and sent a letter of acceptance. The letter was delivered on Dec. 1 but A was in cebu at that time.
While in cebu A wrote a letter of withdrawal received by B on Dec. 4, Dec. no perfected contract
because when the acceptance letter was read by A he already made a withdrawal letter previous to
that. A withdrawal of offer is effective immediately Laudico vs. Arrias. & Azuncion vs. CA
11. An acceptance made by letter or telegram which has been mailed, it still may be withdrawn
(Manresa if acceptance can, the moment the offeree makes his acceptance he is the first to
become aware that there is a meeting of minds therefore he is not permited to withraw) (Tolentino
there is only one moment of a contract, in the moment when the acceptance comes to
theknowledge of the offeror therefore he still can withraw.)
12. An acceptance maybe express or implied.
13. if you are interested in accepting the offer your acceptance must reach me not later than Jan. 1,
2008 the messenger had accident and the letter reached only on January 2, no perfected
contract, it does not matter whether the delay of acceptance was bec of fortuitous event.
14. 1323 important provision!!! (Memorize)
15. What is the effect of civil interdiction? cannot manage your own property or dispose it by contract
inter vivos. (restricts the capacity to act of a person under civil interdiction)
16. A wrote a letter to B offering to sell his H&L in Manila 5M cash. B accept and wrote a letter of
acceptance and mailed it to A, Before A could receive the acceptance B became insane,,,there is no
perfected contract.
17. Conveyance of acceptance - Requires a proper form of acceptance(e.g. assume A wrote a letter to
B donating his lot in QC attached with the deed of donation already signed. B receive the donation
and accepted called B and said the same and signed the acceptance, mailed it back to A, before A
could receive the acceptance B became insane, no perfected donation, calling A informing him of
the acceptance is not sufficient, there is no proper conveyance.)
18. 1324 important!!!
19. Exception: when can the offeror just not withdraw(a preparatory contract option founded upon
a consideration) option money (if there is no consideration the option is not binding.)
20. Sanchez vs. Rigos Remember!!!!! very logical daw sabi ni sir. As compared to the Natino case.
21. Right to first refusal
22. A leases a lot to B where in the contract there is a stipulation of right to first refusal. It is a valid
provision, it is binding, what consideration will support? Same consideration that supports the lease
contract. Supposing there is a breach, B dedcided to sell the property to X without giving the option
to A, it is a violation of the right of A, what is the right of A? (a right of first refusal is a innovative
contractright to recover damages based on human relation,,,according to other decisions if
violated the injured party has certain substantial remedies: can ask for the recission of the deed of
sale, can compelled to sell the property at the same price sold to mr. X and recover damages.)
23. Vitug only damages based on Human Relations; Other decisions damagaes, recission, or compel
to sell the property to A.
24. Important Fact!!!1 (In the cases decided by SC where there is violation of right to first refusal the
third person was in bad faithequatorial, guzman cases!) if the 3 rd person is in good faith all the
remedies are not available except for the damages to be indemnify.
1. Mere advertisements of things for sale are merely invitations (General Rule). even a mere
advertisement may constitute A cause to advertise in the newspaper, subdivision lots, reasonable,
call etcmerely an invitation.
2. Same in the case of advertisement for biddersthe advertiser is not bound to accept the highest
bid or the lowest.they have the right not to accept. simply an invitations for the public to make
a bid.
3. 1327 who are incapacitated. (see book and provisions) important provision!!!! remove
emancipated minors
4. Certain situations/exceptions where a minor may actually be bound by the contract 1. When he
actively misrepresent his age. it is necessarily that the minor should have at least passed the
age of puberty otherwise it is not possible for him to misrepresent his age and mislead the other
party. (see other exceptions in pg 412 Jurado)
5. In one case, sy suan vs alcantara dissenting opinion of justice padillaeven if the minor has
misrepresented his age he should not be held liable because the reason for a minor is prevented
from entering into contract is to protect the said minor,,,why should you punish such.
6. PD 734 allowing minors to open savings account.
7. Lunatic may pagasa ka pathere is lucid interval, imbecility walang kapagapagasa..case of
perpetual eclipse..can never enter into contracts.
8. There are certain situations where certain indi take note of article 1490 of the civil code,
9. Take note of PAGE
10. TAKE NOTE OF THE DISTINCTION BET. PROHIBITION AND INCAPACITY
11. VICES OF CONSENT 1330
12. Take note of Article 1331!!!!
13. Mistake as to the identity ordinarily will not make the contract voidable unless it was the principal
moving force were the other party entered into the contract for that reason.
14. Assume A bought from B a pocket book because A thought it was a thrilling story. A cannot sue for
the contract s annulment for the reason of boringno it was only incidental.
15. A bought from B a H&L because he thought that the neighbor was Kristine Hermosa.
16. Assume that A bought an Engagement ring (diamond) from B.then nabusted si A,,,he cannot sue
for annulment, No. mistake with respect to his motives not vice
17. A bought 100 sacks of cement from B intending to re-sell them. He discovered that the price wehre
he will re-sell the cements was lowerhe cannot sue for annulment of contract.
18. Only mistake of fact can possibly serve as a basis
19. Article 1334 Take Note!!!! pareho silang nagkamalimay vitiate consent.
20. Asiain vs. Jalandoni discussed. (see book pg. 425 Jurado)
21. Article 1332 take note!!!
22. Mutual Error the error must be mutual if not it will not provide a basis for annulment.
23. Violence and intimidation Difference, violence involves actual use of force. (Memorize Article
1335!!!!! And 1336!!!!)
24. Regardless of the source of the intimidation or violence it will still vitiate consent
resulting in a voidable contract.
25. Relative conditions must be considered in determining violence or intimidation age,
strengthect.
26. In connection with threat or intimidationcase of Martinez vs. HSBC (see pg. 434 - Jurado)
remember.
27. One who consents although reluctantly gives his consent just the same. It is not vitiated there is no
basis for the annulment of the contract.
28. Article 1335 grave peril upon the personare not used in their technical sense under RPC but in
generic sense refers to the threat against the persons integral
29. Undue influencetakes improper advantage over the will of the otherthere is a substitution of
will.
30. Consider everythingrelation between the parties, financial distress, etc. it is always difficult to
create a case under the basis of undue influence the law does not prohibit any form of influence
but only undue ones.
31. Fraud it is which might be present at the time of the contractdifferent from the one in 1170
which is fraud in the performance in the performance conscious intentional evation evaded the
obligation
32. Fraud in 1338 one of two kindsserious (dolo causante use of insidious words or
machinations...) it is the principal moving fraud which induces the party to enter into contract.
33. Dolo incidente of incidental fraud not the principal inducement in the contractthe party would
have still entered into conract even if he have knowledge of the fraud.
34. Woodhouse vs. Halili there was only incidental fraudbecause halili would still have entered into
contract.
35. Dolo causante principally moves the party to enter into contractif present in the birth of the
contractit will be vitiatedillustration of eguaras vs. Eastern see pg. 440 Jurado
36. Will the mere silence of a party constitute fraud? if you have a duty to reveal facts and do not
disclose the same then there is fraud.
37. A and B are partners in a Real Estate Co. They own one large land in a remote area in Cavite 20P
per SQM. A learned from a source that SM will be constructed. A bought the shares of B without
telling him about the SMthere is fraud because partners are duty bound to by trust and
confidence therefore there is duty to disclose.
38. Take note of Article 1339.
39. Exaggerations in tradenot necessarily fraudulent specially when the party has the capacity to
verify the facts.
40. Mere expressions of opinion as a general rule are not considered fraudulent except when made by
an expert the other party relied on it.
41. If guilty of mistake there can be no indemnity for damagesfraud can
42. Misrepresentation must be mutual and substantial.
43. Difference in article 1342 and 1346
44. Illustration of a contract which is invalid because of misrepresentation.
45. Rural Bank of Caloocan vs. CA.
46. If the fraud employed by the party is causal in character the contract is voidableif the fraud is
incidental it will merely entitle the offended party for damage.
47. Simulation of contractsabsolute and relative
48. Absolute there is no intent to be bound at all.- this is the essential requisite of an absolute
simulation. (Usually done by people to run away from creditors)
49. Relative simulations usually happens in Filipino families. Make it appear that something has been
sold but it was in reality a donation. valid as long as it does notsee provision article 1346.
11. A greed to pay B 5M and B will deliver to A all the cattle in his ranch in Masbate. Valid? Yes even if
the exact number is specified.
12. Give the case of Blas vs. Santos. see page 453 Jurado (there is no consideration to convey the
half of the promise to convey, it is a contract of ) there is a sufficient cause or consideration, upon
the death of Martha the conjugal partnership was terminated. Half would go to Martha, the other
half will go to simeon. In reality since there was no liquidation and since declared the
13. What is the cause of a contract? - see page 457 1st par. Jurado
14. Is the cause the same as motive? see page 459 Jurado
15. A own a pen and sold one to B for 500P and sold another to C 500P and another to D for P500. Are
there same cause? Yes, the cause of all the contract of sale is the acquisition the purchase price.
Although the motives maybe different. Even if the prices are not the same.
16. Will the illegality of the motive render the contract invalid? No, the motive does not affect the
validity of the contract. Except when the motive will pre-determine or the contract is to the
attainment of the motive of the contracting party.
17. Liguez vs. CA here the motive of the contracting party is the moving reason of the cause of the
contract. (Remember!!!)
18. What is the cause or consideration in a contract of donation? The pure act of liberality.
19. A sold his car to B, the object is the car. dispute among civilistsee the view of tolentino page
458 Jurado
20. In a contract of barter there are two objects.
21. Case of Phil Banking Corp vs. Lui She Land Mark Case in Philippine case. (page 460 3 rd paragraph
Jurado) applied one of the exceptions to the rule of pare delicto. (VERY IMPORTANT
CASE!!!!!!!!!!!!!!!!!!!!!!) if the attainment of the contract is conditioned upon the
attainment of motive or the motive pre-determined the attainment of the contract.
22. Assume that A and B entered into a contract on oct 2007 where A sell his car to B for 500K and will
be paid not later that dec 1 2007. Upto know B has not paid. Can A have the contract inexistent due
to absence of causa or consederation? No, the contract will become merely a voidable one. (see
page 467 1st paragraph Jurado) the only remedy is to rescind the contract or ask for specific
performance with indemnity for damages.
23. Is a mere promise a sufficient consideration even if the promise is not fulfilled? Yes
24.
14. Consider the contract as a wholecontext is everythinginterpret the provision to each other
15. Remember articlen 1377!!!!!!!!!!!!!!!!
16. Cpu
17. Recissible contracts. Next meeting
March 4, 2008
1. Rescissible contracts are type of defective contracts, what are the defect? It defective because of
the injury caused to the other party or 3rd party.
2. The fundamental bases of the defects have been criticized by some civilist.
3. The amount of the damage must be more than of the amount of the things.
4. Do things have fix absolute value? No because they change from time to time. When the law fixes a
certain amount of damage the civilists say that the basis for the rescission is not stable because
there is constant change in the value of things.
5. 1381 four basic type of contracts that are rescissible contracts.
6. In scattered provisions of the civil code there are rescissible contractssuch as article 1189.
7. With respect to a contract entered into by a guardian or representative of an absentee. He sold the
car for 200k the actual value of the car is 500k. the contract is unenforceable since the
representative or guardian has not ask for the approval of the court to sell the property.
8. The matter of lesion is only thru contracts entered into by the representative or guardian in the
administration of the property of the absentee or ward.
9. A sold his H&L to X for 5M on Jan 1, in May of the same year he borrowed money from B and
promise to pay on Dec. 2007. Can B sue for the rescission of the sale? No because the credit must
be a pre-existing credit at the time of the alienation.
10. Assume that A had other properties (same as no. 9), can B sue for rescission? Rescission is a
subsidiary remedy, it is a remedy when there is no other legal means to recover.
11. This time A and B are litigants of a parcel of land. A is currently in possession. During the pendency
of the case A sold the H&L to mr. X and Mr. X is in Bad faith. B won the case against A. X and A
went to B and ask not to rescind the sale. Can B insist on the rescission? Does the rule on rescission
as a subsidiary means apply? Yes, B can insist on the rescission since there is a writ of execution.
(should not apply if involves thing under litigation.)
12. What is the purpose why the law makes that contract of an object under litigation rescissible to
protect the possible effectivity of a real right.
13. Contracts entered into in fraud of creditorsA owes 10M to B and and A donated the only property
to C. was the act fraudulent? Yes, if the alienation is gratuitous there is a presumption of fraud if
there is no reservation to .Assume that C in a Donee in good faith, can B ask for the rescission of
the donation? Yes, if the transfer of the title is by gratuitous the good faith of the transferee is not
protected. (why? because the transferee did not even lose anything so the creditor should be
protected over the donee.)
14. In the same case assuming it was sold and not donated and the buyer was in good faith the right of
the buyer is protected. (no, only damages from the one causing the loss)
15. The moment the property has passed to the hands of an innocent purchaser for value you cannot
ask for the rescission of subsequent sale of it even if they were in bad faith.
16. Why is the debtor non included in the order of liable buyers in bad faith for liability for damages?
Because since rescission can only be availed of if there is no other legal remedies the creditor can
avail of thus it means that the debtor is already insolvent therefore he has no more means to pay
for damages.
17. hindi ko nakuha yung tanong ni sirsomething about judgement and sale etc. under article 1387
18. What are the badges of fraud? see page 519 Jurado (Memorize!!)
19. Cabaliw vs. Sadorra see page 511 - Jurado
20. Sikatuna vs. Guevarra see age 507 Jurado
21. When a contract is
22. How does rescission of contracts under this provision differ form that of 1191? See page 495 on
distinguished from resolution. - in 1191, there is mutual restitution depending on their agreement.
But the recent pronouncement of SC is there will still mutual restitution
23. What is the prescription? 4 years
24. Under art 1388 whoever acquires in bad faith will be liable in bad faith when ever due to any cause
the property is impossible to be returned. What about in caso fortuito are they liable for damages?
yes since the provision stipulates that due to any cause and since under 552 of the civil code
states that a possessor in bad faith should be liable for the loss of the thing no matter
what the cause maybe. this is the view of Atty. Navarro.
March 6, 2008
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