SAN BEDA COLLEGE OF LAW

Manila

OBLIGATIONS AND CONTRACTS

FOR : SECTIONS I-A, I-E and I-H

FROM : MANUEL P. CASINO

DATE : 14 November 2014

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I. Read and MEMORIZE Arts. 1305 to 1430, inclusive.

II. Cases

A. Real and Consensual Contracts

a. Garcia vs. Thio, 518 SCRA 433 [2007]

B. Validity of Contractual Stipulations (Article 1306)

a. BF United Homeowner’s Association, Inc. Vs. The City Mayor,

515 SCRA 1 [2007]
b. Tiu vs. Platinum Plans Phils., Inc. , 517 SCRA 101
c. Duncan v. Glaxo, 438 SCRA 343 [2004]
d. Star Paper v. Simbol, 487 SCRA 228 [2006]
e. Premiere Development Bank vs. CA, 427 SCRA 686 [2004]
F. Victoriano vs. Elizalde Rope Workers’ Union G.R. No. L-25246,
September 12, 1974

B.1 Escalation Clause:

a. Polotan v. CA, 296 SCRA 247 [1998]
b. New Sampaguita Builders v. PNB, 435 SCRA 565 [2004]

B.2 Contract of Adhesion

a. Titan Construction Corp. vs. Uni-Field Enterprises, Inc.

517 SCRA 180
b. Tolentino vs. CA, 517 SCRA 732
c. Polten vs. BPI, 517 SCRA 430

B.3. Validity of contracts

a. Ariaga Vda. De Gurrea vs. Suplico, 488 SCRA 332

b. Republic vs. La’o, 489 SCRA 424

B.4. On Non-Impairment of Obligations of Contracts

a. Serrano vs. Gallant Maritime Services Inc., 582 SCRA 254

b. Goldenway Merchandising Corporation vs. Equitable PCI
Bank, G.R. No. 195540, March 13, 2013

C. Binding Effect of Contracts (Article 1308)

a. Heirs of William Sevilla vs. Sevilla, 402 SCRA 501

b. Dario Nacar v. Gallery Frames, et al., G.R. No. 189871, August
13, 2013.
c. Planters Development Bank vs. Spouses Ernesto Lopez And
Florentina Lopez, G.R. No. 186332, October 23, 2013

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D. Relativity of Contracts (Article 1311)

a. Ballesteros vs. Abion, 482 SCRA 23

b. Filipinas Systems, Inc. vs. MRT Development Corporation,
537 SCRA 609

D.1. Stipulation Pour Autrui

a. Artex Development Co., Inc., vs.Wellington Insurance Co.,

Inc., G.R. No. L-29508 June 27, 1973
b. Miguel Florentino, Et al., vs. Salvador Encarnacion, Sr., et
al., , G.R. No. L-27696 September 30, 1977
c. Rebecca C. Young Vs. Ca, G.R. No. 79518 January 13, 1989
d. Associated Bank Vs. Court Of Appeals And Lorenzo Sarmiento
Jr., G.R. No. 123793 June 29, 1998
e. South Pachem Development, Inc. Vs. Honorable Court Of
Appeals, Et Al., G.R. No. 126260, December 16, 2004

E. Perfection of Contracts

a. Malbarossa vs. CA, 402 SCRA 266

b. People’s Homesite & Housing Corp. vs. CA, G.R. No. 61623, Dec.
20, 1984.
c. Dignos vs. Court of Appeals, 158 SCRA 375
d. Sargasso Construction & Development Corporation/Pick &
Shovel, Inc.,/Atlantic Erectors, Inc. (Joint Venture) vs.
Philippine Ports Authority, G.R. NO. 170530, July 5, 2010
e. Mirasol vs. Yusay, 11 SCRA 410
f. Paculdo vs. Regalado, 345 SCRA 134
g. Jardine Davies, Ic. Vs. CA, 333 SCRA 684
h. Laforteza vs. Machuca, 333 SCRA 472
i. Roman vs. Grimalt (6Phil. 96)
j. Toyota Shaw, Inc. vs. Court of Appeals and Sosa (G.R. L-116650
May 23, 1995).
k. Virginia Pagco vs. Court of Appeals (G.R. No. L-109236, March
18, 1994)
l. Cesar Raet, Et Al. vs. Court Of Appeals, Et Al. (G.R. No.. 128016,
September 17, 1998)

E.1. Option Contract/Option Money (to Art. 1324in relation to

Art. 1479)

a. Beaumont vs. Prieto (41 Phil. 670)

b. Cronico vs. J.M. Tuazon & Co. (78 SCRA 331)
c. Natino vs. IAC (197 SCRA 332)
d. Atkins Kroll & Co. vs. Cua Hian Tek (102 Phil 948)
e. Southwestern Sugar and Molasses Co. vs. Atlantic Gulf &
Pacific Co. (51 O.G. 3447)
f. Sanchez vs. Rigos, 45 SCRA 368)
g. Rural Bank of Paranaque vs. CA (G.R. No. 62051, 18 March
1985)

E.2. Right of First Refusal

a. Definition
b. Enforceability
c. Need for distinct consideration

a. Equatorial Realty v. Carmelo & Bauermann, 264

SCRA 483 [1996]

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 b. Paranaque Kings v. CA, 268 SCRA 727 [1997]
c. Litonjua v. L & Corp, 320 SCRA 405 [1999]
d. PUP V. CA, 368 SCRA 691 [2001]

F. Essential Requisites of Contract

F.1. Consent (Articles 1319-1346)

1. Montinola vs. Victorias Milling Co., 54 Phil 782

2. Enriquez vs. Sun Life Insurance, 51 Phil 269
3. Laudico vs. Arias, 43 Phil. 270

F.1.a. Mistake

a. Gomez Marino vs. Linton, 45 Phil. 653

b. Sylvia Lichauco De Leon vs.The Hon. Court Of Appeals,
Macaria De Leon And Jose Vicente De Leon, G.R. No.
80965, June 6, 1990
c. Domingo Realty vs. CA, 513 SCRA 40 [2007]

F.1.b. Violence, Intimidation and Undue Influence

a. Jocelyn M. Toledo vs. Marilou M. Hyden G.R. No. 172139,
December 8, 2010
b. Francis Lee vs. Court Of Appeals, People Of The Philippines
And Pelagia Panlino De Chin, G.R. No. 90423 September 6,
1991
c. Manuel T. De Guia, Et Al., vs. Hon. Presiding Judge,
Regional Trial Court, Branch 12, Malolos, Bulacan, Et Al.,
G.R. No. 161074, March 22, 2010
d. Development Bank Of The Philippines1 And Privatization
And Management Office (Formerly Asset Privatization
Trust) Vs. Hon. Court Of Appeals, Philippine United
Foundry And Machinery Corp. And Philippine Iron
Manufacturing Co., Inc., G.R. No. 138703, June 30, 2006

F.1.b. Fraud
a. Alejandro V. Tankeh vs. Development Bank Of The
Philippines, Sterling Shipping Lines, Inc., Ruperto V. Tankeh,
Vicente Arenas, And Asset Privatization Trust, G.R. No.
171428, November 11, 2013
b. Igmidio Abando And Consolacion Abando vs. Francisco
Lozada, Milagros Lozada And The Honorable Court Of
Appeals, G.R. No. L-82564 October 13, 1989

F.2. Object of Contracts

a. Domingo Realty vs. CA, 513 SCRA 40 [2007]

b. Wilfredo T. Vagilidad And Lolita A. Vagilidad vs.Gabino Vagilidad,
Jr. And Dorothy Vagilidad, G.R. No. 161136, November 16, 2006
c. Aurora Fe B. Camacho vs. Court Of Appeals And Angelino
Banzon, G.R. No. 127520, February 9, 2007

F.3 Cause or Consideration (Articles 1350-1355)

a. Elias L. Penaco vs. Zoilo H. Ruaya And Felicitas E. Ruaya, G.R.
No. L-28102, December 14, 1981
b. Angel Jose Warehousing Co., Inc., vs. Chelda Enterprises And
David Syjueco, G.R. No. L-25704, April 24, 1968
c. Republic Of The Philippines, And/Or National Marketing
Corporation vs. Hon. Gaudencio Cloribel, As Judge Of The Court
Of First Instance Of Manila, Branch VI, Jose San Agustin, As Ex-

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 Officio Sheriff Of The City Of Manila, And Bienvenido Y. Aguilar,
G.R. No. L-27905, December 28, 1970

F.3.a. Simulated Contracts

a. Gaudencio Valerio, Et
Al., Vs. Vicenta Refresca, Et Al., G.R. No. 163687, March 28,
2006
b. Ruben Loyola Vs.The
Honorable Court Of Appeals, et al., G.R. No. 115734, February
23, 2000
c. Monico Concepcion Vs.
Paciencia Sta. Ana, G.R. No. L-2277 December 29, 1950
G. Form of Contracts (Articles 1356 1358)

a. University of the Philippines vs. Philab Industries, Inc,.

G.R. No. 152411, September 29, 2004

b. Leung Ben Vs. P. J. O'brien, James A Ostrand And Geo. R.

Harvey, G.R. No. L-13602, April 6, 1918

c. Marlene Dauden-Hernaez vs. Hon. Walfrido De Los Angeles,

Judge Of The Court Of First Instance Of Quezon City,
Hollywood Far East Productions, Inc., And Ramon
Valenzuela, G.R. No. L-27010, April 30, 1969

d. Market Developers, Inc. (MADE) vs. Hon. Intermediate

Appellate Court And Gaudioso Uy, G.R. No. 74978,
September 8, 1989

e. Jaime L. Yaneza vs. The Honorable Court Of Appeals,

Manuel A. De Jesus And Wilhelmina M. Manzano, G.R. No.
149322, November 28, 2008

f. Bienvenido C. Teoco And Juan C. Teoco, Jr., vs.

Metropolitan Bank And Trust Company, G.R. No. 162333,
December 23, 2008

H. Reformation of Instruments

a. Cebu Contractors Consortium Co. vs. CA, 407 SCRA 154

b. Yolanda Rosello-Bentir, et al. vs. Hon. Mateo Landa, G.R.
No. 128991, 12 April 2000
c. Proceso Quiros And Leonarda Villegas
vs. Marcelo Arjona, Teresita Balarbar, Josephine Arjona,
And Conchita Arjona, G.R. No. 158901, March 9, 2004

I. Interpretation of Contracts (Articles 1370-1379)

a. Wood Technology Corporation vs. Equitable Banking

Corporation, 451 SCRA 724
b. Torquator vs. Bernabe, 459 SCRA 439
c. Horrigan vs. Troika Commercial, Inc., 476 SCRA 421
d. Huibonhoa vs. CA, 320 SCRA 625
e. Reynaldo P. Floirendo, Jr Vs. Metropolitan Bank And Trust
Company, G.R. No. 148325, September 3, 2007

J. Contractual Obligations

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 a. Professional Academic Plans, Inc. vs. Crisostomo, 453 SCRA
342
b. GF Equity, Inc. vs. Valenzona, 462 SCRA 466
c. L&L Lawrence Footwear, Inc. vs. PCI Leasing and Finance
Corp., 468 SCRA 393.

K. Voidable Contracts

1. Miailhe vs. CA, 354 SCRA 675

2. Loyola vs. CA, 326 SCRA 285
3. Metropolitan Waterworks And Sewerage System (Mwss), vs.
Court Of Appeals, et al., , G.R. No. 126000 October 7, 1998
4. Julian Francisco, Et Al. vs. Pastor Herrera, G.R. No. 13998, Nov.
21, 2002
5. First Philippine Holdings Corporation vs. Trans Middle East
(Phils.) Equities Inc., G.R. No. 179505, December 4, 2009

L. Rescissible Contracts

a. China Banking Corporation vs. CA, 327 SCRA 378

b. Jesus Campos And Rosemarie Campos-Bautista vs.
Nenita Buenvenida Pastrana, Et Al., G.R. No. 175994,
December 8, 2009
c. Rosencor Development Corporation And Rene Joaquin Vs.
Paterno Inquing, Irene Guillermo, Federico Bantugan,
Fernando Magbanua And Lizza Tiangco, G.R. No. 140479,
March 8, 2001
d. Ireneo Odejar, Et Al. vs. Isidro P. Guico, Emmanuel Guico
And Lourdes G. Amorante, G.R. No. L-67548, December
20, 1989
e. Heirs Of Sofia Quirong vs. Development Bank Of The
Philippines, G.R. No. 173441, December 3, 2009
f. KHE HONG CHENG, et al. vs. COURT OF APPEALS, HON.
TEOFILO GUADIZ, G.R. No. 144169 March 28, 2009 – on
prescription of action to rescind.

M. Unenforceable Contracts

a. Pua vs. CA, 345 SCRA 233

M.1. Statute of Frauds

a. Torquator vs. Bernabe, 459 SCRA 439

b. Cordial vs. Miranda, 348 SCRA 258
c. The Municipality Of Hagonoy, Bulacan Vs. Hon. Simeon P.
Dumdum, Jr. et Al., G.R. No. 168289, March 22, 2010
d. Ker & Co. vs. Lingad, 38 SCRA 524
e. Swedish Match, AB, Et Al. vs.Court Of Appeals, Als
Management & Development Corporation And Antonio K.
Litonjua, G.R. No. 128120, October 20, 2004

M.2. REPUBLIC ACT NO. 8792 (E-Commerce Act)

N. Void Contracts

1. Villegas vs. Rural Bank of Tanjay, 588 SCRA 436

a. Beltran vs. Villarosa, 585 SCRA 283
b. Uy Sui Pin vs. Cantollas (70 Phil 55)
c. Maharlika Pub. Co. vs. Tagle (G.R. No. 65594, 09 July 1986)
d. Bautista vs. Montilla (L-6569, 03 April 1956)
e. Rubias vs. Batiller (51 SCRA 120)

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f. Krivenko vs. Reg. of Deeds, etc. (79 Phil. 461)

N.1. In Pari Delicto Rule

a. Potenciano Ramirez vs. Ma. Cecilia

Ramirez, G.R. No. 165088, March 17, 2006
b. Jose Menchavez, Et Al. vs. Florentino
Teves Jr., G.R. No. 153201, January 26, 2007

c. Alfonso Angeles, Et Al. Vs. The Court Of

Appeals, Gregorio Sta. Ines And Anastacia Divino, G.R. No. L-
11024, January 31, 1958

d. Abacus Securities Corporation Vs.

Ruben U. Ampil, G.R. No. 160016, February 27, 2006

e. Angel Jose Warehousing Co., Inc. Vs.

Chelda Enterprises And David Syjueco, G.R. No. L-25704,
April 24, 1968