SAINT LOUIS UNIVERSITY

A Bonifacio Street
2600 Baguio City, Philippines
Tel Nos (+6374) 442.3043 • 443.2001 • 444.8246 to 48
Fax (+6374) 442.2842
www.slu.edu.ph

Member • Association of Southeast Asian Institutions of Higher Learning (ASAIHL)

• Association of Southeast and East Asian Catholic Colleges and Universities (ASEACCU)
• Association of Catholic Universities of the Philippines (ACUP)
• Catholic Educational Association of the Philippines (CEAP)
• International Federation of Catholic Universities (IFCU)
School of Law • Philippine Association of Colleges and Universities (PACU)
• Philippine Accrediting Association of Schools, Colleges and Universities (PAASCU)

SYLLABUS IN OBLIGATIONS AND CONTRACTS

Department CIVIL AND LABOR LAW

Course Name/Title
Course Number
Semester Offered
Year Level Offered
Credit Units
Pre-requisites (if any)
Course Description
OBLIGATIONS AND CONTRACTS
LAW 121
2nd SEMESTER
FIRST YEARS
5
LAW 111 (PERSONS AND FAMILY RELATIONS)
An in depth study of the nature, kinds and effects of
obligations and their extinguishment; contracts in general,
their requisites, form and interpretation; defective
contracts, quasi-contracts, natural obligations; and
estoppel.

Learning Outcomes:
By the end of the semester, the students should be able to:
a. State and explain the nature, kind and effects of obligations and their
extinguishment; contracts in general, their requisites, form and interpretation;
defective contracts, quasi-contracts, natural obligations; and estoppel;
b. Use and apply the law, the legal and equitable principles, as well as
jurisprudence in assessing, analyzing and resolving issues and legal problems
in obligations and contracts.
c. Draw from the assigned cases, research and group work particular lessons and
insights that would serve to strengthen their legal skills, critical thinking and
social awareness about the importance of the laws on obligations and
contracts and that they may also serve as mediums to educate their
community and peers concerning the importance of good faith and
compliance with obligations.

Course Requirements and Grading Plan

a. Class Standing – recitation, case digest, research paper, and graded group
activities: 50%
b. Departmental Examination (Midterm & Finals) 50%

Course Outline:

I. DEFINITION AND CONCEPT

A. Definition
Art. 1156 in relation to Art. 2236
Civil, natural, moral obligations
Civil obligation

o Makati Stock Exchange v. Campos, G.R. NO. 138814, April 16, 2009

1
B. Civil obligation distinguished from natural obligation
Natural obligation
Art. 1423 – 1430

o Manzanilla v. Court of Appeals, G.R. No. 75342, March 15, 1990

o Rural Bank of Parañaque, Inc. v. Remolado, G.R. No. L-62051, March 18, 1985
o Development Bank of the Philippines v. Adil, G.R. No. L-48889, May 11, 1989

II. ESSENTIAL ELEMENTS/REQUISITES

o Asuncion v. Court of Appeals, G.R. No. 109125, December 2, 1994 (En Banc)

Subjective Elements:
1. Active Subject/ Creditor / Obligee
2. Passive Subject (debtor /obligor)
o Ocampo III v. People, G.R. No. 156547, 4 February 2008 (543 S 487)

Objective Elements:
3. Prestation / Object
4. Efficient Cause / Legal Tie/ Vinculum Juris

III.SOURCES OF OBLIGATIONS
Art 1157 - 1162 in relation to Art.1305, 2142, 2176, 2177, 2180; Art. 89, 100, 104
Revised Penal Code
o Metropolitan Bank & Trust Company v. Ana Grace Rosales and Yo Yuk To,
G.R. No. 183204, January 13, 2014

A. Law
o Leung Ben v. O'Brien, 38 Phil 182
o Pelayo v. Lauron, G.R. No. L-4089, January 12, 1909 (En Banc) (12 Phil 453)
o Hotel Nikko v. Reyes, G.R. No. 154259, February 28, 2005
o St. Mary’s Academy v. Carpitanos, G.R. No. 143363, February 6, 2002

B. Contract
o Guanio v. Makati Shangri-la Hotel, G.R. No. 190601, 7 February 2011
o TSPI, Inc. v. TSPOC Employees Union, G.R. No. 163419, February 13, 2008 (545
SCRA 215)
o Regino v. Pangasinan College, G.R. No. 156109, 18 November 2004
o Ayala Corp v. Rosa Diana Realty, G.R. No. 134284, December 1, 2000 (346
SCRA 663)

C. Quasi-contract
Arts. 2142 – 2175
o Padcom Condominium Corporation v. Ortigas Center Association, Inc., G.R.
No. 146807, May 9, 2002
o Southern Philippines Power Corp. v. Commissioner of Internal Revenue, G.R.
No. 179632, October 19, 2011
o Commissioner of Internal Revenue v. Aichi Forging Company of Asia, Inc.,
G.R. No. 184823, October 6, 2010
o Moreño-Lentfer v. Wolff, G.R. No. 152317, November 10, 2004
o Genova v. De Castro, G.R. No. 132076, July 22, 2003
o Titan-Ikeda Construction & Development Corporation v. Primetown Property
Group, Inc., G.R. No. 158768, February 12, 2008
o Traders Royal Bank Employees Union-Independent v. National Labor Relations
Commission, G.R. No. 120592, March 14, 1997
o Philippine National Bank v. Court of Appeals, G.R. No. 97995, January 21, 1993

2
 o Commisioner of Internal Revenue v. Acesite (Philippines) Hotel Corporation,
G.R. No. 147295, February 16, 2007
o Locsin v. Mekeni, G.R. No. 192105, 9 December 2013
o Flores v. Lindo, G.R. No. 183984, 13 April 2011
o Cruz v. J. M. Tuason & Company, Inc., G.R. No. L-23749, April 29, 1977

D. Delict
o People v. Bayotas, G.R. No. 102007 September 2, 1994 (En Banc)
o People v. Go, G.R. No. 168539, March 25, 2014 (En Banc)
o L.G. Foods Corporation v. Pagapong-Agraviador, G.R. No. 158995,
September 26, 2006
o People v. Nurfrashir Hashim, 13 June 2012
o Abellana v. People, 17 August 2011

E. Quasi-Delict
o Andamo v. Intermediate Appellate Court, 191 SCRA 195
o Barredo v. Garcia, 73 Phil 607
o Del Carmen, Jr. v. Geronimo Bacoy, 25 April 2012 (res ipsa loquitor)
o Philippine Hawk Corporation v. Lee, 16 February 2010
o Dy Teban v. Ching, 543 SCRA 560
o Safeguard Security v. Tangco, 511 SCRA 67
o Villanueva v. Domingo, 438 SCRA 485
o Calalas v. CA, 31 May 2000
o Picart v. Smith, 37 Phil 813 re: last clear chance

III. NATURE AND EFFECT OF OBLIGATIONS

Art. 1163 - 1168 in relation to Art. 1156
A. Real obligation: generic and specific
B. Personal obligation: positive and negative

A. Real Obligation/ Obligation to give

1. Determinate/Specific Thing (specific real obligation)
Art. 1460, 1244
o De Leon v. Soriano. G.R. No. L-2724, August 24 1950
o Hahn v. Court of Appeals G. No L-55372, May 31, 1989

a. effect of loss – Art. 1262

b. primary obligation
Kinds/Modes of delivery
Actual, Symbolic, Delivery through Execution of Legal Instruments, Traditio
Longa Manu, Traditio Brevi Manu, Traditio Constitutum Possessorium
o Norkis Distributors, Inc. v. Court of Appeals, G.R. No. 91029, February 7, 1991
o Lagon v. Hooven Comalco Industries, Inc., G.R. No. 135657, January 17, 2001

c. accessory obligations
(1) Art. 1163
Diligence of a good father of a family/ paterfamilias
o Picart v. Smith, 37 Phil 809
o Durban Apartments v. Pioneer Insurance, 12 January 2011
(2) Art. 1164
o Philippine National Bank v. Marañon, G.R. No. 189316, July 1, 2013
Kinds of fruits
Personal Right and Real Right
When obligation to deliver arises
(3) Art. 1166
Accession
Accessory

3
2. Indeterminate/Generic Thing (generic real obligation)
Art. 1460, 1246
a. effect of loss – Art. 1263
o Bunge Corp. v. Camenforte , G.R. No. L-4440 August 29, 1952
b. obligations

3. Remedies Available to the creditor

Art. 1165, 1170
Kinds of performance
(1) specific performance
(2) substitute performance
(3) equivalent performance

B. Personal obligation
1. Obligation to do (positive personal obligation)
a. Remedies available to the creditor
Art. 1167, 1244 par. 2
o Chaves v. Gonzales, G.R. No. L-27454, April 30, 1970
o Occena v. Jabson, G.R. No. L-44349, October 29, 1976
o Francisco v. Court of Appeals, 401 SCRA 594
o Tanguiling v. Court of Appeals, 266 SCRA 78

2.. Obligation not to do (negative personal obligation)

a. Remedies available to the creditor
Art. 1168, 1244 par 2
o Perez v. Court of Appeals, G.R. No. 107737, Oct. 1, 1999

C. Irregularity in Performance/ Breach of Obligations

Art. 1169 – 1174
Kinds of Damages

1. Attributable to the Debtor

a. Delay/ default/ mora
Art. 1169, 1170
Kinds of delay
o Philippine Charter Insurance Corporation v. Central Colleges of the
Philippines and Dynamic Planners and Construction Corporation, G.R. No.
180631, February 22, 2012
o Titan-Ikeda Construction & Development Corp. v. Primetown Property Group,
Inc., G.R. No. 158768, February 12, 2008

Default/Legal delay
Requisites -- when a debtor is in default
o Social Security System v. Moonwalk Development & Housing Corporation,
G.R. No. 73345, April 7, 1993
o Aerospace vs. CA, GR 108129, Sept. 23, 1999
o General Milling Corporation v. Sps. Librado Ramos and Remedios Ramos; G.R.
No. 193723, July 20, 2011
o PNB Madecor v. Uy, 363 SCRA 128
o Atlantic Erectors, Inc. v. Court of Appeals, G.R. No. 170732, October 11, 2012
o Pascua v. G & G Realty Corporation, G.R. No. 196383, October 15, 2012
o Bonrostro v. Luna, G.R. No.172346, July 24, 2013
o Development Bank of the Philippines v. Guariña Agricultural and Realty
Development Corporation, G.R. No. 160758, January 15, 2014
o Maybank Philippines, Inc. v. Tarrosa, G.R. No. 213014, October 14, 2015
o Federal Builders, Inc. v. Foundation Specialists, Inc., G.R. No. 194507,
September 8, 2014

4
 When demand is not necessary
o Barzaga v. Court of Appeals, G.R. No. 115129, February 12, 1997
o Tanguiling v. Court of Appeals, 266 SCRA 78
o Tayag v. Court of Appeals, 219 SCRA 480
o Periquet v. Court of Appeals, 238 SCRA697
o Cabanting v. Bpi Family Savings Bank, Inc., G.R. No. 201927, February 17, 2016
o Rivera v. Chua, G.R. No. 184458, January 14, 2015

Kinds of default
(1) mora solvendi
o Raquel-Santos v. Court of Appeals, G.R. No. 174986, July 7, 2009
o RCBC v. CA, 305 SCRA 449
o Ventura Hocorma Foundation, Inc. v. Santos, G.R. NO. 153004,
November 5, 2004

(2) mora accipiendi

o State Investment House, Inc. v. Court of Appeals, G.R. No. 90676, June 19,
1991

(3) compensation morae

bilateral obligation, mutual obligation, reciprocal obligation
o Heirs of Bacus v. Court of Appeals, G.R. No. 127695, December 3, 2001
o BPI Investment v. Court of Appeals, 377 SCRA 117
o Leano v. Court of Appeals, 369 SCRA 36
o Integrated Packing v. Court of Appeals, 333 SCRA 170
o Laforteza v. Machuca, 333 SCRA 643
o Cortes v. Court of Appeals, G.R. NO. 126083, July 12, 2006

b. Fraud
Art. 1171, 1170
Differentiated from fraud under Art. 1338
Dolo causante and dolo incidente

o Legaspi Oil Co., Inc. v. Court of Appeals, G.R. No. 96505, July 1, 1993
o Solidbank Corporation v. Mindanao Ferroalloy Corporation, G.R. No. 153535,
July 28, 2005
o International Corporate Bank v. Gueco, G.R. No. 141968, Feb. 12, 2001
o Woodhouse v. Halili, 93 Phil. 526
o Regala v. Carin, G.R. No. 188715, April 6, 2011
o Republic of the Philippines v. Court of Tax Appeals, G.R. No. 139050, October
2, 2001
o Philippine Banking Corp. v. Dy, 685 SCRA 567 (2012)
o Diaz v. Davao Light, 4 April 2007 (malicious prosecution)
o Yasonna v. De Ramos, 440 S 154 (malicious prosecution)

c. Negligence
Art. 1172, 1173, 1170
Degrees of diligence: Extraordinary, Ordinary, Slight
Culpa contractual, Culpa aquiliana, Culpa criminal
Liability of employer – when solidary, independent, subsidiary, vicarious
Liability for quasi-delict vis-à-vis a contract

o FGU Insurance Corporation v. G.P. Sarmiento Trucking Corporation, G.R. No.

141910, August 6, 2002
o Picart v. Smith, 37 Phil 809
o Necesito v. Paras, G.R. No. L-10605-06, June 30, 1958
o Añonuevo v. Court of Appeals, G.R. No. 130003, October 20, 2004

5
 o Saludaga v. Far Eastern University, G.R. No. 179337, April 30, 2008
o Victory Liner, Inc. v. Gammad, G.R. No. 159636, November 25, 2004
o Metropolitan Bank and Trust Company v. Centro Development Corp., G.R.
No. 180974, June 13, 2012
o Philippine National Bank v. Santos, G.R. No. 208293, December 10, 2014
o BJDC Construction v. Lanuzo, , G.R. No. 161151, March 24, 2014
o Bignay EX-IM Philippines, Inc. v. Union Bank of the Philippines, G.R. No. 171590,
February 12, 2014
o Development Bank of the Philippines v. Guariña Agricultural and Realty
Development Corporation, G.R. No. 160758, January 15, 2014
o Eastern Shipping Lines, Inc. v. BPI/MS Insurance Corp., and Mitsui Sumitomo
Insurance Co., Ltd.,G.R. No. 193986, January 15, 2014
o Land Bank of the Philippines v. Kho, G.R. No. 205839, July 07, 2016
o MERALCO v. Ramoy, G.R. NO. 158911, March 4, 2008 (culpa contractual)
o Mindanao Terminal And Brokerage Service, Inc. v. Phoenix Assurance
Company Of New York,Mcgee & Co., Inc., G.R. NO. 162467, May 8, 2009
(diligence required)
o Sicam v. Jorge, G.R. NO. 159617, August 8, 2007

Medical malpractice/medical negligence

o Reyes v. Sisters of Mercy Hospital, G.R. No. 130547, October 3, 2000
o Li v. Soliman, G.R. No. 165279, June 07, 2011
o Professional Services, Inc. v. Agana, G.R. No. 126297, January 31, 2007
o Professional Services, Inc. v. Court of Appeals, G.R. No. 126297, February 11,
2008, and G.R. No. 126297, February 2, 2010
o Ramos v. Court of Appeals, G.R. No. 124354, December 29, 1999, and G.R.
No. 124354, April 11, 2002
o Nogales v. Capitol Medical Center, G.R. No. 142625, December 19, 2006
o Cantre v. Go, G.R. No. 160889, April 27, 2007
o Solidum v. People of the Philippines,G.R. No. 192123, March 10, 2014
o Rosit v. Davao Doctors Hospital, G.R. No. 210445, December 07, 2015
o Borromeo v. Family Care Hospital, Inc., G.R. No. 191018, January 25, 2016
o Mendoza v. Casumpang, G.R. No. 197987, March 19, 2012

d. Circumvention of the tenor of the obligation

Art. 1170
o Arrieta v. National Rice and Corn Corporation, G.R. No. L-15645, January 31,
1964
o Cathay Pacific Airways, Ltd. v. Vasquez, G.R. No. 150843, March 14, 2003

2. Not attributable to the Debtor

Fortuitous event
Art. 1174, 1165 par. 3
Caso fortuito, Force Majeure/ Fuerza Mayor, ordinary, extraordinary
Requisites

o Victorias Planters Association, Inc. v. Victorias Milling Co., Inc., G.R. No. L-6648,
July 25, 1955
o Philippine Communications Satellite Corp. v. Globe Telecom, G.R. No. 147324,
May 24, 2004
o Dioquino v. Laureano, G.R. No. L-25906, May 28, 1970
o Austria v. Court of Appeals, G.R. No. L-29640, June 10, 1971
o Co vs. Court of Appeals, G.R. No. 124922, June 22, 1998
o Lea Mer Industries, Inc. v. Malayan Insurance Co., Inc., G.R. No. 161745,
September 30, 2005
o Sicam v. Jorge, G.R. NO. 159617, August 8, 2007
o Philippine Realty and Holdings Corp. v. Ley Construction and Development
Corporation, G. R. No. 165548, June 13, 2011

6
 o Juan F. Nakpil & Sons vs. Court of Appeals, G.R. No. L-47851, October 3, 1986
o Vasquez v. Court of Appeals, G.R. No. L-42926, September 13, 1985
o Megaworld Globus Asia, Inc. v. Tanseco, G.R. No. 181206, October 9, 2009
o Metro Concast Steel Corp., Spouses Jose S. Dychiao and Tiu Oh Yan, et al. v.
Allied Bank Corporation, G.R. No. 177921, December 4, 2013.
o Bernales v. Northwest Airlines, G.R. No. 182395, October 05, 2015

D. Other provisions
1. Enforcement of creditor’s remedies
Art. 1177, 1178
a. Levy and execution of non-exempt properties
Art. 2236 in relation to Sec. 13 of Rule 39 of the Rules of Court
b. Accion subrogatoria
c. Accion pauliana

o Adorable v. Court of Appeals, G.R. No. 119466, November 25, 1999

o Marimperio Compañia Naviera, S.A. v. Court of Appeals, G.R. No. L-40234,
December 14, 1987
o Metropolitan Bank and Trust Company v. International Exchange Bank, G.R.
No. 176008, August 10, 2011
o Khe Hong Cheng v. Court of Appeals, G.R. No. 144169, March 28, 2001

2. Transmissibility of rights
o Estate of Hemady v. Luzon Surety Co., Inc., 100 Phil 388
o San Agustin v. Court of Appeals, 371 SCRA 348
o Project Builders, Inc. v. Court of Appeals, G. R. No. 99433, June 19, 2001
o Union Bank of the Philippines v. Santibañez, G.R. No. 149926, February 23,
2005
o Genato v. Bayhon, G.R. No. 171035, August 24, 2009

3. Usurious transactions
Art. 1175 in relation to Act No. 2655
o Angel Jose Warehousing Co., Inc. v. Chelda Enterprises, G.R. No. L-25704,
April 24, 1968
o Security Bank and Trust Company v. Regional Trial Court, G.R. No. 113926,
October 23, 1996
o Asian Cathay Finance and Leasing Corp. v. Gravador, G.R. No. 186550, July
5, 2010
o Solidbank Corp. v. Permanent Homes, Inc., G.R. No. 171925, July 23, 2010
o Villanueva v. Court of Appeals, G.R. No. 163433, August 22, 2011
o RGM Industries, Inc. v. United Pacific Capital Corporation, G.R. No. 194781,
June 27, 2012
o David v. Misamis Occidental II Electric Cooperative, Inc., G.R. No. 194785,
July 11, 2012
o Anchor Savings Bank v. Pinzman Realty and Development Corporation, G.R.
No. 192304, August 13, 2014
o Mallari v. Prudential Bank, G.R. No. 197861, June 5, 2013

4. Presumptions regarding interests and installments

Art. 1176, 1253
o Manila Trading & Supply Co. v. Medina, G.R. No. L-16477, May 31, 1961
o Marquez v. Elisan Credit Corporation, G.R. No. 194642, April 06, 2015

IV. KINDS OF OBLIGATIONS

A. Pure obligation
Art. 1179
o Hongkong and Shanghai Banking Corp. v. Broqueza, G.R. No. 178610,
November 17, 2010

7
B. Conditional obligation
Art. 1179 – 1190
Condition
Kinds of conditions
Suspensive condition
o Reyes v. Tuparan, G.R. No. 188064, June 1, 2011
o Heirs of Atienza vs. Espidol, G.R. No. 180665, August 11, 2010
o The Wellex Group, Inc. v. U-Land Airlines, Co., Ltd, G.R. No. 167519, January
14, 2015

Art. 1181
Art. 1182
a. potestative condition
b. casual condition
c. mixed condition

o Hermosa v. Longara, 93 Phil 977

Art. 1183
a. impossible condition
(1) physically impossible
(2) legally impossible
o Government Service Insurance System v. Court of Appeals, G.R. No.
124208, January 28, 2008

b. possible condition

Art. 1184, 1185

a. positive condition
b. negative condition

Art. 1186 - Doctrine of Constructive Compliance (constructive fulfillment)

o Taylor v. Uy Tieng Piao, 43 Phil 873
o Bonrostro v. Sps. Juan and Constacia Luna, G.R. No.172346, July 24, 2013
o Lim v. Development Bank of the Philippines, G.R. No. 177050, July 1, 2013
o International Hotel Corporation v. Joaquin, G.R. No. 158361, April 10, 2013

Art. 1188 - Preservation of creditor's rights : Vigilantibus, sed non dormientibus jura
subverniunt

Art. 1187 - Retroactivity of obligation

o Anunciacion Vda. De Ouano, et. al., v. The Republic of the Philippines, et.
al., G.R No. 168770, February 9, 2011

Art. 1189, 579, 580 – rules in case of improvement, loss or deterioration of the
thing

Resolutory condition
Art. 1181, 1190
Demandability (Art. 1179)
Constructive fulfillment (Art. 1186)
Effect of happening of condition
Art. 1188 - Preservation of creditor's rights
Art. 1189, 579, 580 – rules in case of improvement, loss or deterioration of the
thing

o Quijada v. Court of Appeals, G.R. No. 126444, December 4, 1998

8
 o Multinational Village Homeowners Association, Inc. v. ARA Security &
Surveillance Agency, Inc., G.R. No. 154852, October 21, 2004
o Valdez v. Court of Appeals, G.R. No. 140715, September 24, 2004

C. Reciprocal obligations
Art. 1191, 1192
Remedies in case of breach
Resolution
Distinguished from rescission under under Art. 1381

o University of the Philippines v. De Los Angeles, G.R. No. L-28602, September 29,
1970
o Cannu v. Galang, G.R. No. 139523, May 26, 2005
o Ong v. Bogñalbal, G.R. No. 149140, September 12, 2006
o Pryce Corporation v. Philippine Amusement and Gaming Corporation, G.R.
No. 157480, May 6, 2005
o G.G. Sportswear Mfg. Corp. v. World Class Properties, Inc., G.R. No. 182720,
March 2, 2010
o Solar Harvest Incorporated v. Davao Corrugated Carton Corp., G.R. No.
176686, July 26, 2010
o Maceda v. Development Bank of the Philippines, G.R. No. 174979, August 11,
2010
o Heirs Gaite v. The Plaza, Inc., G.R. No. 177685, January 26, 2011
o Reyes v. Tuparan, G.R. No. 188064, June 1, 2011
o Lalicon v. National Housing Authority, G.R. No. 185440, July 13, 2011
o F.F. Cruz & Co., Inc. v. HR Construction Corp., G.R. No. 187521, March 14, 2012
o Subic Bay Metropolitan Authority v. Court of Appeals, G.R. No. 192885, July 4,
2012
o Fil-Estate Properties, Inc. v. Ronquillo, G.R. No. 185798, Jan. 13, 2014
o Golden Valley Exploration, Inc. v. Pinkian Mining Company, G.R. No.
190080, June 11, 2014
o Swire Realty Development Corporation v. Yu, G.R. No. 207133, March 9, 2015
o The Wellex Group, Inc. v. U-Land Airlines, Co., Ltd, G.R. No. 167519, January
14, 2015

D. Obligation with a period/term

Art. 1180, 1193 – 1198
Period distinguished from condition
Computation of periods – Art. 13
Kinds of periods
Suspensive period
Resolutory period
Mistaken Premature Delivery/Payment – Art. 1195
Instances when court may fix a period – Art. 1197
Instances when the debtor loses the benefit of the period – Art. 1198
Rules on Loss, Deterioration, Improvement (Art. 1194 in rel. to 1189)

o Lirag Textile Mills, Inc. v. Court of Appeals, G.R. No. L-30736, April 14, 1975
o /Smith, Bell & Co., Ltd. v. Matti, 44 Phil 874
o /Sarmiento v. Javellana, 43 Phil 880
o /Victorias Planters Association, Inc. v. Victorias Milling Co., Inc., G.R. No. L-
6648, July 25, 1955
o Jespajo Realty Corporation v. Court of Appeals, G.R. No. 113626, September
27, 2002
o /Gonzales v. De Jose, 66 Phil 369
o Malayan Realty, Inc. v. Uy Han Yong, G.R. No. 163763, November 10, 2006
o Olante v. Commission on Audit, G.R. No. 207348, August 19, 2014

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 o Radiowealth Finance Company v. Del Rosario, G.R. NO. 138739, July 6, 2000
o Araneta, Inc. v. Philippine Sugar Estates, G.R. No. L-22558, May 31, 1967 (on
Art. 1197)

E. Alternative Obligations
Art. 1199 – 1205
Distinguished from Conjunctive Obligations
Right of choice
Effect of loss of prestation/s

o De Legarda v. Miailhe, G.R. No. L-3435, April 28, 1951

o Ong Guan Can v. Century Insurance Co., Ltd., 46 Phil 592
o Reyes v. Martinez, 55 Phil 492
o Arco Pulp and Paper Co., Inc. v. Lim, G.R. No. 206806, June 25, 2014

F. Facultative obligations
Art. 1206
Distinguished from alternative obligation
Effect of loss of prestation

o Quizana v. Redugerio, 94 Phil 922

G. Joint obligation (mancommunada, pro-rata)

Art. 1207, 1208

o Agoncillo v. Javier, 38 Phil 424

o Alipio v. Court of Appeals, G.R. No. 134100, September 29, 2000
o Cembrano v. City of Butuan, G.R. No. 163605, September 20, 2006
o Marsman Drysdale Land, Inc. v. Philippine Geoanalytics, G.R. No. 183374,
June 29, 2010
o Berot v. Siapno, G.R. No. 188944, July 9, 2014

H. Solidary obligation (in solidum, solidaria, joint and several)

Art. 1207, 1209 – 1222
Kinds of solidarity
Distinguished from indivisible obligation
How created
Active solidarity (mutual agency)
Passive solidarity (mutual guaranty)

o Imperial Insurance, Inc. v. David, G.R. No. L-32425, November 21, 1984
o International Finance Corp. v. Imperial Textile Mills, Inc., G.R. No. 160324,
November 15, 2005
o PH Credit Corporation v. Court of Appeals, G.R. No. 109648. November 22,
2001
o Ronquillo v. Court of Appeals, G.R. No. L-55138, September 28, 1984
o Republic Glass Corporation and Gervel, Inc. v. Qua, G.R. No. 144413, July 30,
2004
o Construction Development Corporation of the Philippines v. Estrella, G.R. No.
147791, September 8, 2006
o Asset Builders Corp. v. Stronghold Insurance Company, Incorporated, G.R.
No. 187116, October 18, 2010
o Petron Corp. v. Jovero, G.R. No. 151038. January 18, 2012
o Philippine Charter Insurance Corp. v. Central Colleges of the Philippines and
Dynamic Planners and Construction Corp., G.R. No. 180631, February 22, 2012
o Olongapo City v. Subic Water and Sewerage Co., Inc., G.R. No.
171626, August 6, 2014

10
 o Estanislao and Africa Sinamban v. China Banking Corporation, G.R. No.
193890, March 11, 2015

I. Divisible obligation
Art. 1223 - 1225
Kinds of Division: Qualitative, Quantitative, Ideal / Intellectual

J. Indivisible obligation
Art. 1223, 1225
Natural, Legal, Conventional

o Nazareno v. Court of Appeals, G.R. No. 138842, October 18, 2000

K. Obligation with a penal clause

Art. 1226 – 1230
Kinds of penal clause – legal, conventional, compensatory, punitive, subsidiary, joint
Purpose/function of penal clause
Characteristics of penal clause
Distinguished from interest, liquidated damages
Escalation clause & acceleration clause
Legal rate: loans & forbearance of money, other obligations

o Social Security System v. Moonwalk Development & Housing Corporation,

G.R. No. 73345, April 7, 1993
o Cabarroguis v. Vicente, 107 Phil 340
o Florentino v. Supervalue, Inc., G.R. No. 172384, September 12, 2007
o Tan v. Court of Appeals, G.R. No. 116285, October 19, 2001
o Continental Cement Corporation v. Asea Brown Boveri, G.R. No. 171660,
October 17, 2011
o Prisma Construction & Development Corp. v. Menchavez, G.R. No. 160545,
March 9, 2010
o Marques v. Far East Bank and Trust Company, G.R. No. 171379, January 10,
2011
o Philippine National Bank v. Rocamora, G.R. No. 164549, September 18, 2009
o J Plus Asia Development Corp. v. Utility Assurance Corp., G.R. No. 199650,
June 26, 2013
o Nacar v. Gallery Frames., G.R. No. 189871, Aug. 13, 2013
o Venzon v. Rural Bank of Buenavista, Inc., G.R. No. 178031, Aug. 28, 2013
o S.C. Megaworld Construction and Development Corp. v. Parada, G.R. No.
183804, Sept. 11, 2013
o Secretary of the Department of Public Works and Highways v. Tecson, G.R.
No. 179334, April 21, 2015

V. EXTINGUISHMENT OF OBLIGATIONS
General Provisions - Art. 1231
o Metro Concast Steel Corp. v. Allied Bank Corp., G.R. No. 177921, Dec. 4, 2013.

A. Payment/ Performance
Art. 1232 - 1261
Requisites
1. as to the prestation
a. Identity – Art. 1244, 1246, 1249, 1250
Currency, Legal Tender, Demand Deposit (Secs. 48, 49, 52, 58, 59, 60 R.A. 7653
or the Bangko Sentral ng Pilipinas Act)
b. Integrity/ Completeness – Art. 1233-1235
Substantial payment/ performance
c. Indivisibility – Art. 1248

11
 2. as to the parties
a. Payor – Art. 1236-1239
b. Payee – Art. 1240-1243
3. as to time and place – Art. 1251

Instruments/evidences of credit
Effect of inflation

o Almeda v. Bathala Marketing, G.R.No.150806, January 28, 2008 (extraordinary

inflation)
o International Hotel Corporation v. Joaquin, G.R. No. 158361, April 10, 2013
(Art. 1234)
o Dela Cruz v. Concepcion, G.R. No. 172825, Oct. 11, 2012
o Moreño-Lentfer v. Wolff, G.R. No. 152317, November 10, 2004
o Cembrano v. City of Butuan, G.R. No. 163605, September 20, 2006
o Republic of the Philippines v. De Guzman, G.R. No. 175021, June 15, 2011
o Tibajia v. Court of Appeals, G.R. No. 100290, June 4, 1993
o Esguerra vs. Villanueva, G.R. No. L-23191. December 19, 1967
o Tolentino v. Court of Appeals, G.R. No. L-50405-06, August 5, 1981
o Baritua v. Court of Appeals, G.R. No. 82233, March 22, 1990
o Orata v. Intermediate Appellate Court, G.R. No. 73471, May 8, 1990
o Philippine Commercial International Bank v. Court of Appeals, G.R. No.
121989, January 31, 2006
o Vitarich Corp. v. Losin, G.R. No. 181560, November 15, 2010
o Almeda v. Bathala Marketing Industries, Inc., G.R. No. 150806, January 28,
2008
o Cinco v. Court of Appeals, G.R. No. 151903, October 9, 2009
o Landbank of the Philippines v. Ong, G.R. No. 190755, November 24, 2010
o Republic v. De Guzman, G.R. No. 175021, June 15, 2011
o Union Bank of the Philippines v. Tiu and Victoria N. Tiu, G.R. No. 173090,
September 7, 2011
o Maxwell Heavy Equipment Corporation v. Yu, G.R. No. 179395, December 15,
2010
o Azcona v. Jamandre, G.R. NO. L-30597, SCRA, June 30, 1987 (re Art. 1235)
o Culaba v. Court of Appeals, G.R. No. 125862. April 15, 2004 (payment to
proper party)
o Dela Cruz v. Concepcion, G.R. No. 172825, October 11, 2012 (payment to
proper party)
o National Power Corporation v. Ibrahim, G.R. No. 175863, February 18, 2015
(Art. 1242)
o Netlink Computer Incorporated v. Delmo, G.R No. 160827, June 18, 2014
(currency)
o Papa v. A.U. Valencia and Co. Inc., G.R. NO. 105188, January 23, 1998
(payment by check)
o Philippine Commercial International Bank v. Franco, G.R. No. 180069, March
5, 2014 (proof of payment)
o Bognot v. RRI Lending Corporation, G.R. No. 180144, September 24, 2014
(proof of payment, payment by check)

Special Forms of Payments:

1. Dation in payment/ dacion en pago - Art. 1245
o Luzon Development Bank v. Enriquez, G.R. No. 168646, January 12, 2011
o Filinvest Credit Corporation v. Philippine Acetylene, Co., Inc., G.R. No. 50449,
January 30, 1982
o Caltex (Philippines), Inc., v. Intermediate Appellate Court, G.R. No. 72703,
Nov. 13, 1992
o Tan Shuy v. Maulawin, G.R. No. 190375, February 8, 2012

12
 o Serfino v. Far East Bank and Trust Company, Inc., G.R. No. 171845, Oct. 10,
2012
o Lopez v. Court of Appeals, G.R. No. L-33157, June 29, 1982
o Vda. De Jayme v. Court of Appeals, G.R. No. 128669, October 4, 2002

2. Application of payments – Art. 1252-1254

o Paculdo v. Regalado, G.R. No. 123855. November 20, 2000

3. Payment by cesion – Art. 1255

4. Tender of payment and Consignation – 1256-1261

Requisites of valid consignation
Instances when consignation can be made even without prior tender of payment

o McLaughlin v. Court of Appeals, G.R. No. L-57552, Oct. 10, 1986

o Riesenbeck v. Court of Appeals, G.R. No. 90359, June 9, 1992
o Soco v. Militante, G.R. No. L-58961, June 28, 1983
o Dalton v. FGR Realty and Development Corporation, G.R. No. 172577,
January 19, 2011
o Cacayorin v. Armed Forces and Police Mutual Benefit Association, Inc., G.R.
No. 171298, April 15, 2013
o Bonrostro v. Luna, G.R. No.172346, July 24, 2013
o Del Carmen v. Sabordo, G.R. No. 181723, August 11, 2014
o Rayos v. Reyes, G.R. No. 150913, February 20, 2003
o Roman Catholic Bishop Of Malolos, Inc. v. Intermediate Appellate Court, G.R.
No. 72110, November 16, 1990

B. Loss of the thing due/ impossibility of performance

Art. 1262 -1269
Physical, Legal, Civil loss
Instances when loss does not extinguish the obligation
Rebus sic stantibus

o Ortigas & Co. v. Feati Bank and Trust Co., G.R. No. L-24670, December 14,
1979
o Co v. Court of Appeals, G.R. No. 124922, June 22, 1998
o Naga Telephone Co., Inc. v. Court of Appeals, G.R. No. 107112, February 24,
1994
o Occena v. Jabson, G.R. No. L-44349, October 29, 1976
o Philippine National Construction Corporation v. Court of Appeals, G.R. No.
116896, May 5, 1997
o So v. Food Fest Land, Inc., G.R. No. 183628, April 7, 2010
o Comglasco Corporation/Aguila Glass v. Santos Car Check Center
Corporation, G.R. No. 202989, March 25, 2015

C. Condonation or Remission
Art. 1270 – 1274
Requisites
Kinds - Inter Vivos (Art. 725, et. seq.), Mortis Causa (Art. 935-937), complete, partial,
express, implied

o Trans-Pacific Industrial Supplies, Inc. v. Court of Appeals, G.R. No. 109172,

Aug. 19, 1994
o Dizon v. Court of Tax Appeals, G.R. No. 140944, April 30, 2008
o Reyna v. Commission on Audit, G.R. No. 167219, February 8, 2011

D. Confusion or Merger
Art. 1275 – 1277

13
Requisites
o Valmonte v. Court of Appeals, G.R. No. L-41621, February 18, 1999
o Mota v. Serra, G.R. No. 22825, Feb. 14, 1925
o Yek Tong Lin Fire & Marine Insurance Co., Ltd. v. Yusingco, 64 Phil 473

E. Compensation
Art. 1278 – 1290
Kinds
Total and partial compensation – Art. 1281
Legal compensation – Art. 1290, 1279, 1280, 1286-1288,
Voluntary/Conventional – Art. 1282
Judicial/ Set-off – Art. 1283
Facultative

o Gan Tion v. Court of Appeals, 28 SCRA 235

o CKH Industrial and Development Corporation v. Court of Appeals, G.R. No.
111890, May 7, 1997
o Pioneer Insurance & Surety Corporation v. Court of Appeals, G.R. No. 76509,
Dec. 15, 1989
o Francia v. Intermediate Appellate Court, G.R. No. L-67649, June 28, 1988
o Bank of the Philippine Islands v. Court of Appeals, G.R. No. 116792, March 29,
1996
o Trinidad v. Acapulco, G.R. No. 147477, June 27, 2006
o PNB Madeco v. Uy, G.R. No. 129598, August 15, 2001
o Lao v. Special Plans, Inc., G.R. No. 164791, June 29, 2010
o Traders Royal Bank v. Castañares, G.R. No. 172020, December 6, 2010
o Lao v. Special Plans, Inc., G.R. No. 164791, June 29, 2010
o Montemayor v. Millora, G.R. No. 168251, July 27, 2011
o Insular Investment and Trust Corp. v. Capital One Equities Corp., G.R. No.
183308, April 25, 2012
o Soriano v. People, G.R. No. 181692, Aug. 14, 2013
o Mondragon Personal Sales, Inc. v. Sola, Jr.; G.R. No. 174882, Jan. 21, 2013
o Union Bank of the Philippines v. Development Bank of the Philippines, G.R. No.
191555, Jan. 20, 2014
o First United Constructors Corp. v. Bayanihan Automotive Corp., G.R. No.
164985, Jan. 15, 2014
o Bank of the Philippine Islands v. Court of Appeals, G.R. No. 136202, January
25, 2007

F. Novation
Art. 1291 – 1304
Requisites
Kinds
a. Subjective/Personal Novation
(1) Passive/Substitution – Art. 1293-1295
Expromision, Delegacion
(2) Active/Subrogation – Art. 1300-1302
Legal, Conventional
b. Objective/Real
c. Mixed
Effects

o Garcia, Jr. v. Court of Appeals, G.R. No. 80201, Nov. 20, 1990
o Ligutan v. Court of Appeals, G.R. No. 138677. Feb. 12, 2002
o California Bus Lines, Inc. v. State Investment House, Inc., G.R. No. 147950,
December 11, 2003
o Tomimbang v. Tomimbang, G.R. No. 165116, August 4, 2009

14
 o Metropolitan Bank and Trust Company v. Rural Bank of Gerona, Inc., G.R. No.
159097, July 5, 2010
o Banate v. Philippine Countryside Rural Bank (Liloan, Cebu), Inc., G.R. No.
163825, July 13, 2010
o St. James College of Parañaque v. Equitable PCI Bank, G.R. No. 179441,
August 9, 2010
o Mindanao Savings and Loan Association, Inc., v. Willkom, G.R. No. 178618,
October 20, 2010
o Salazar vs. J.Y. Brothers Marketing Corporation, G.R. No. 171998, October 20,
2010
o Loadmasters Customs Services, Inc. v. Glodel Brokerage Corporation and R &
B Insurance Corporation, G.R. No. 179446, January 10, 2011
o Hernandez-Nievera. v. Hernandez, G.R. No. 171165, February 14, 2011
o Country Bankers Insurance Corp. v. Antonio Lagman, G.R. No. 165487, July 13,
2011
o RCJ Bus Lines, Inc. v. Standard Insurance Company Inc., G.R. No. 193629,
August 17, 2011
o Republic Flour Mills Corporation v. Forbes Factors, Inc., G.R. No. 152313,
October 19, 2011
o Stolt-Nielsen Transportation Group, Inc., v. Modequillo, G.R. No. 177498,
January 18, 2012
o United Pulp & Paper Co., Inc. v. Acropolis Central Guaranty Corp., G.R. No.
171750, January 25, 2012
o Milla v. People, G.R. No. 188726, January 25, 2012
o Malayan Insurance Co., Inc. v. Alberto, G.R. No. 194320, February 1, 2012
o Heirs Franco v. Gonzales, G.R. No. 159709, June 27, 2012
o Landbank of the Philippines v. Ong, G.R. No. 190755, November 24, 2010
o Tomimbang v. Tomimbang, G.R. No. 165116, August 4, 2009
o St. James College of Parañaque v. Equitable PCI Bank, G.R. No. 179441,
August 9, 2010
o ACE Foods, Inc. v. Micro Pacific Technologies Co., Ltd., G.R. No. 200602, Dec.
11, 2013.
o RCJ Bus Lines, Inc. v. Master Tours and Travel Corp. G.R. No. 177232, Oct. 11,
2012
o Philippine National Bank v. Soriano G.R. No. 164051, Oct. 3, 2012
o Philippine Reclamation Authority v. Romago, Inc., G.R. No. 174665, Sept. 18,
2013
o Vector Shipping Corporation v. American Home Assurance Co., G.R. No.
159213, July 3, 2013
o Asian Terminals, Inc. v. Philam Insurance Co., Inc., G.R. No. 181163, July 24,
2013
o Bognot v. RRI Lending Corporation, G.R. No. 180144, September 24, 2014
o Degaños v. People of the Philippines, G.R. No. 162826, October 14, 2013
o Arco Pulp And Paper Co., Inc. v. Lim, G.R. No. 206806, June 25, 2014
o The Wellex Group, Inc. v. U-Land Airlines, Co., Ltd, G.R. No. 167519, January
14, 2015
o Bank of the Philippine Islands v. Domingo, G.R. No. 169407, March 25, 2015

g) Other causes:
Prescription – Arts. 1106-1116
Concept
Right to Prescription
In favor of / Against (Art. 1107-1108, 1110-1111; 1114)
Prohibited (Art. 1108-1109;1113)
Who May Renounce ; How (Art. 1112)
Extinctive Prescription – Arts. 1139-1155
Concept and effects
Statute of Limitations/Prescriptive Periods – Art. 1140-1149, 1542, 1543, 1571, 1577

15
 o Insurance of the Philippine Islands Corporation v. Gregorio, G.R. No. 174104,
February 14, 2011
o Laureano v. Court of Appeals, G.R. No. 114776. February 2, 2000
o Rosario v. De Guzman, G.R. No. 191247, 10 July 2013
o Vector Shipping v. American Home, G.R. No. 159213, 3 July 2013
o Villeza v. German Management, 8 August 2010
o Bernales v. Heirs of Sambaan, 15 January 2010

Computation of Period – Art. 1150-1154

o Banco Filipino Savings and Mortgage Bank v. Court of Appeals, G.R. No.
129227. May 30, 2000
o Vda. De Delgado v. Court of Appeals, G.R. No. 125728, August 28, 2001

Interruption Art. 1155

o B & I Realty Co., Inc. v. Caspe, G.R. No. 146972, January 29, 2008
o Mesina v. Garcia, G.R. No. 168035, November 30, 2006

Estoppel
Art. 1431 - 1439
Concept
o Megan Sugar Corporation V. Regional Trial Court of Iloilo, G.R. No. 170352,
June 1, 2011
o Tanay Recreation Center and Development Corp. v. Fausto, G.R. No.
140182. April 12, 2005
o Lim v. Queensland Tokyo Commodities, Inc., G.R. No. 136031, January 4, 2002
o Kalalo v. Luz, G.R. No. L-27782, July 31, 1970
o Laurel v. Desierto, G.R. No. 145368, July 1, 2002
o Caldo v. Caldo-Atienza, G.R. No. 164453, March 28, 2006
o Applicability against the government/State: Republic v. Manimtim, G.R. No.
169599, March 16, 2011
o Dy v. Bibat-Palamos G.R. No. 196200, Sept. 11, 2013
o SM Land, Inc. v. Bases Conversion and Development Authority, G.R. No.
203655, March 18, 2015

Kinds
o Co Chien v. Sta. Lucia Realty & Development, Inc., G.R. No. 162090, January
31, 2007

Estoppel by Record; Estoppel by Judgment

o Dela Cruz v. Paras, 69 SCRA 556

Estoppel by Deed/Conduct
o Metrobank v. Court of Appeals, G.R. No. 122899, June 8, 2000
o Manuel v. Court of Appeals, G.R. No. 108228, February 1, 2001

Estoppel in Pais/ Equitable Estoppel

a. By representation/ positive acts
o Cuenco v. Cuenco Vda. de Manguerra, G.R. No. 149844, October 13, 2004
o De Los Santos v. Vibar, G.R. No. 150931, July 16, 2008
o Hanopol v. Shoemart Inc., G.R. No. 137774, October 4, 2002
o Philippine Savings Bank v. Chowking Food Corp., G.R. No. 177526, July 4, 2008
o Chung v. Ulanday Construction, Inc., G.R. No. 156038 : October 11, 2010

b. By admission
o Pacific Mills, Inc. v. Court of Appeals, G.R. No. 123807, December 13, 2005

c. By promise/ promissory estoppel

16
 o Mendoza v. Court of Appeals, G.R. No. 116710, June 25, 2001
o Terminal Facilities and Services Corp. v. Philippine Ports Authority, G.R. No.
135639, February 27, 2002
o Yamamoto v. Ishino Leather Industries, Inc., G.R. No. 150283, April 16, 2008

d. By silence
o NYCO Sales Corporation v. BA Finance Corporation, G.R. No. 71694, August
16, 1991
o Roblett Industrial Construction Corp. v. Court of Appeals, G.R. No. 116682.
January 2, 1997

e. By acquiescence/ acceptance of benefits

Estoppel by laches
Differentiate from presciption
o Far East Bank and Trust Company v. Cayetano, G.R. No. 179909, January 25,
2010
o Sime Darby Pilipinas, Inc. v. Goodyear Philippines, Inc., G.R. No. 182148, June
08, 2011
o Gaitero v. Almeria, G.R. No. 181812, June 8, 2011
o Kings Properties Corp. v. Galido, G.R. No. 170023, November 27, 2009
o Pahamotang v. Philippine National Bank, G.R. No. 156403, March 31, 2005
o Vda. de Rigonan v. Derecho, G.R. No. 159571, July 15, 2005
o Santos v. Santos, G.R. No. 133895, October 2, 2001
o Miguel v. Catalino , G.R. No. L-23072, November 29, 1968
o Assailing jurisdiction: Figueroa v. People, G.R. No. 147406, July 14, 2008
o Sanchez v. Sanchez, G.R. No. 187661, Dec. 4, 2013.
o Citibank, N.A. v. Tanco-Gabaldon, G.R. No. 198444, Sept. 4, 2013
o Tan v. Andrade, G.R. No. 171904, Aug. 7, 2013

CONTRACTS

I. GENERAL PROVISIONS
Arts. 1305 - 1317
o Cabahug v. NAPOCOR, G.R. No. 186069, January 30, 2013

A. Definition
o ACE Foods, Inc. v. Micro Pacific Technologies Co., Ltd., G.R. No. 200602,
December 11, 2013
o Hur Tin Yang v. People, G.R. No. 195117, Aug. 14, 2013
o Cruz v. Gruspe, G.R. No. 191431. March 13, 2013

B. Kinds of contracts

C. Stages of a Contract
o Traders Royal Bank v. Cuison Lumber Co., Inc., G.R. No. 174286, June 5, 2009
o Central Cement Corporation v. Mines Adjudication Board, G.R. No. 173562,
January 22, 2008
o Lorenzo Shipping Corp. v. BJ Marthel International, Inc., G.R. No. 145483,
November 19, 2004
o International Freeport Traders, Inc. v. Danzas, G.R. No. 181833, January 26,
2011
o Heirs of Ignacio v. Home Bankers Savings and Trust Co., G.R. No. 177783, Jan.
23, 2013
o Robern Development Corp. v. People’s Landless Association, G.R. No.
173622, March 11, 2013

17
 o Bugatti v. Court of Appeals, G.R. No. 138113. October 17, 2000

D. Basic principles/characteristics of a contract

1. Consensuality – Art. 1315, 1316
o BPI Investment Corporation v. Court of Appeals, G.R. No. 133632. February
15, 2002

2. Freedom/Autonomy to stipulate – Art. 1306

o Cui v. Arellano University, 2 SCRA 205
o Pactum commissorium: Edralin v. Philippines Veterans Bank, G.R. No. 168523,
March 09, 2011
o Pactum commissorium: Garcia v. Villar, 27 June 2012
o Non-involvement clause: Tiu v. Platinum Plans Phil., Inc., G.R. No. 163512,
February 28, 2007
o Prohibition to marry clause: Duncan Association of Detailman-PTGWO v.
Glaxo Wellcome Philippines, Inc., G.R. No. 162994, September 17, 2004
o Prohibition to marry clause: Star Paper Corporation v. Simbol, G.R. No. 164774
, April 12, 2006
o Exclusivity clause: Avon Cosmetics, Inc. v. Luna, G.R. No. 153674, December
20, 2006
o Escalation clause: Polotan, Sr. v. Court of Appeals, G.R. No. 119379,
September 25, 1998
o Escalation clause: New Sampaguita Builders Construction, Inc. v. Philippine
National Bank, G.R. No. 148753, July 30, 2004
o Dragnet clause: Tecklo v. Rural Bank of Pamplona, 18 June 2010
o Chua Tee Dee v. CA, 429 SCRA 418 (2004) re: Deprivación de derecho v.
Deprivación de mero hecho [Arts. 1654 / 1664] in lease
o Martin v. DBS Bank Philippines, Inc., G.R. No. 174632, June 16, 2010
o Heirs of Zabala v. Court of Appeals, G.R. No. 189602, May 6, 2010
o P.L. Uy Realty Corp. v. ALS Management and Development Corp., G.R. No.
166642, Oct. 24, 2012
o Star Two (SPV-AMC), Inc. v. Paper City Corporation of the Philippines, G.R. No.
169211, March 6, 2013
o Gonzalo v. Tarnate, G.R. No. 160600, January 15, 2014
o Campos v. Bank of the Philippine Islands, G.R. No. 207597, May 30, 2016
o Acol v. Philippine Commercial Credit Card Incorporated, G.R. No. 135149,
July 25, 2006
o Carmelcraft Corporation v. National Labor Relations Commission, G.R. No.
90634, June 6, 1990

3. Obligatory force and Compliance in good faith – Art. 1159, 1315

o Asuncion v. Court of Appeals, G.R. No. 109125, Dec. 2, 1994
o Rizal Commercial Banking Corporation v. Court of Appeals, G.R. No. 133107,
March 25, 1999
o Right of first refusal: Polytechnic University of the Philippines v. Golden Horizon
Realty Corporation, G.R. No. 183612, March 15, 2010
o Consolidated Industrial Gases, Inc. v. Alabang Medical Center, G.R. No.
181983, Nov. 13, 2013
o Metropolitan Bank & Trust Company v. Rosales, G.R. No. 183204, Jan. 13, 2014
o Mendiola v. Commerz Trading Int’l., Inc., G.R. No. 200895, July 31, 2013

4. Mutuality – Art. 1308 – 1310

o GF Equity, Inc. v. Valenzona, G.R. No. 156841, June 30, 2005
o Allied Banking Corporation v. Court of Appeals, G.R. No. 124290, January 16,
1998
o United Coconut Planters Bank v. Beluso, G.R. No. 159912, August 17, 2007
o Saludo, Jr. v. Security Bank Corp., G.R. No. 184041, October 13, 2010
o Pilipino Telephone Corporation v. Tecson, G.R. No. 156966. May 7, 2004

18
 o Philippine Savings Bank v. Castillo, G.R. No. 193178, May 30, 2011
o Philippine National Bank v. Court of Appeals, G.R. No. 88880. April 30, 1991
o Florendo v. Court of Appeals, G.R. No. 101771. December 17, 1996
o Juico v. China Banking Corporation, G.R. No. 187678, April 10, 2013
o Silos v. Philippine National Bank, G.R No. 181045, July 2, 2014

5. Relativity/Privity – Art. 1311, 1317, 1312, 1313, 1314

o Metropolitan Waterworks and Sewerage System v. Bautista, G.R. No. 171351,
March 14, 2008
o Borromeo v. Court of Appeals, G.R. No. 169846, March 28, 2008
o Valdez v. Court of Appeals, G.R. No. 132196, December 9, 2005
o Sta. Lucia Realty v. Buenaventura, G.R. No. 177113, October 2, 2009
o Tortious interference: Go v. Cordero, G.R. No. 164703, May 4, 2010
o Inocencion v. Hospicio de San Jose, G.R. No. 201787, Sept. 25, 2013
o Mamaril v. The Boy Scout of the Philippines, G.R. No. 179382, Jan. 14, 2013
o DKC Holdings Corporation v. Court of Appeals, G.R. No. 118248. April 5, 2000
o Prudential Bank and Trust Company v. Abasolo, G.R. No. 186738, September
27, 2010
o So Ping Bun v. Court of Appeals, G.R. No. 120554. September 21, 1999

II. ESSENTIAL REQUISITES/ ELEMENTS

Arts. 1318 – 1355
Elements: essential, natural, accidental

o SM Land, Inc. v. Bases Conversion and Development Authority, G.R. No.

203655, March 18, 2015

A. Consent
1. Concept

2. Offer – Art. 1319, 1325, 1326

When offer terminates/becomes ineffective – Art. 1323, 1324

3. Acceptance – Art. 1320 - 1324

o Traders Royal Bank v. Cuison Lumber Co., Inc., G.R. No. 174286, June 5, 2009
o Yuvienco v. Dacuycuy, G.R. No L-55048, May 27, 1981
o Metropolitan Manila Development Authority v. Jancom Environmental
Corporation, G.R. No. 147465, Jan. 30, 2002
o Sanchez v. Rigos, 45 SCRA 368
o Malbarosa v. Court of Appeals, G.R. No. 125761. April 30, 2003
o Laudico v. Rodriguez, G.R. No. 16530, March 31, 1922

4. Vices of consent
a. Vices of capacity (persons who cannot give consent) – Art. 1327 - 1329
b. Special incapacities – e.g. Art. 39, 134, 1490, 1491, 1492, 1789

o Catalan v. Basa, G.R. No. 159567, July 31, 2007

o Domingo v. Court of Appeals, G.R. No. 127540, October 17, 2001
o Mendezona v. Ozamiz, G.R. No. 143370, February 6, 2002

c. Vices of will
i. Mistake/error - Art. 1331 – 1334
o Theis v. Court of Appeals, G.R. No. 126013, February 12, 1997
o Rural Bank of Caloocan v. Court of Appeals, G.R. No. L-32116, April 21, 1981
o Dumez Company of France v. National Labor Relations Commission, G.R. No.
82340, Aug. 12, 1991

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 ii. Fraud/Deceit – Art. 1338 – 1344
o Hill v. Veloso, 31 Phil 160
o Fontana Resort and Country Club, Inc. v. Tan, G.R. No. 154670, Jan. 30, 2012
o Viloria v. Continental Airlines, Inc.,G.R. No. 188288, Jan. 16, 2012
o Tankeh v. Development Bank of the Philippines, G.R. No. 171428, Nov. 11,
2013
o Tongson v. Emergency Pawnshop Bula Inc., G.R. 167874, January 15, 2010
o ECE Realty and Development Inc. v. Mandap, G.R. No. 196182, September 1,
2014

iii. Violence /Force – Art. 1335 – 1336

iv. Intimidation - Art. 1335 -1336

o Binua v. Ong G.R. No. 207176, June 18, 2014
o Mangahas v. Brobio G.R. No. 183852, October 20, 2010

v. Undue Influence – Art. 1337

B. Object/ Subject Matter

Art. 1347-1349
1. Requisites:
Within the commerce of man – Art. 1347
Exisiting v. future things - Art. 1347
o Catindig v. vda. De Meneses, G.R. No. 165851, February 02, 2011
o Orduña v. Fuentebella, G.R. No. 176841, June 29, 2010
Licit - Art. 1347
Possible – Art. 1348
Determinate - Art. 1349

C. Cause/Consideration
1. Concept
2. Differentiated from motive – Art. 1351
3. Kinds – Art. 1350
4. Requisites
Existing – Art. 1354
Absence – Art. 1352
Inadequacy - 1355
Lawful – Art. 1352
True/Real – Art. 1353

o Cojuangco, Jr. v. Republic, G.R. No. 180705, Nov. 27, 2012

o Mangahas v. Brobio G.R. No. 183852, October 20, 2010
o Pentacapital Investment Corp. v. Mahinay, G.R. No. 171736, July 5, 2010

D. Simulation of contracts – Art. 1345 -1346

o Heirs of Intac v. Court of Appeals, G.R. No. 173211, Oct. 11, 2012
o Formaran v. Ong, G.R. No. 186264, July 8, 2013
o Villaceran s. De Guzman, G.R. No. 169055, Feb. 22, 2012
o De Leon v. Dela Llana, G.R. No. 212277, Feb. 11, 2015
o Heirs of Ureta v. Heirs of Ureta, G.R. No. 165748, September 14, 2011
o Rebusquillo v. Gualvez, G.R. No. 204029, June 4, 2014

III. FORM OF CONTRACTS

Arts. 1356 – 1358
A. For validity/essential element
B. For enforceability – Statute of Frauds – Art. 1403(2)
C. For convenience

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 o Dauden-Hernaez v. Delos Angeles, G.R. No. L-27010, April 30, 1969 (27 SCRA
1276)
o Vega v. Social Security System, G.R. No. 181672, September 20, 2010
o David v. Misamis Occidental II Electric Cooperative, Inc., G.R. No. 194785, July
11, 2012

IV. REFORMATION OF INSTRUMENTS

Art. 1359 – 1369
A. Concept
B. Requisites
C. When available – Art. 1361 – 1365
D. When prohibited – Art. 1366 - 1367

o Atilano v. Atilano, 28 SCRA 231

o Investor Finance Corp. v. Court of Appeals, G.R. No. 91334, February 7, 1991

V. INTERPRETATION OF CONTRACTS
Art. 1370 – 1379

o Pichel v. Alonzo, 111 SCRA 341

o Tanguilig v. Court of Appeals, G.R. No. 117190, Jan. 2, 1997
o Borromeo v. Court of Appeals, 47 SCRA 65
o Lim Yhi Luya v. Court of Appeals, G.R. No. L-40258, Sept. 11, 1980
o Rizal Commercial Banking Corporation v. Court of Appeals, G.R. No. 133107,
March 25, 1999
o Doctrine of complementary contracts construed together: Philippine Bank of
Communications v. Lim, G.R. No. 158138. April 12, 2005
o Specialibus derogat generalibus: Movido v. Pastor, G.R. No. 172279, February
11, 2010
o Cabahug v. National Power Corp., G.R. No. 186069, Jan. 30, 2013
o Cruz v. Gruspe, G.R. No. 191431, March 13, 2013
o Star Two (SPV-AMC), Inc. v. Paper City Corporation of the Philippines, G.R. No.
169211, March 6, 2013
o Stronghold Insurance Company, Inc. v. Stroem, G.R. No. 204689, Jan. 21, 2015
o Berman Memorial Park, Inc. v. Cheng, G.R. No. 154630. May 6, 2005
o The Wellex Group, Inc. v. U-Land Airlines, Co., Ltd, G.R. No. 167519, January
14, 2015

VI. DEFECTIVE CONTRACTS

A. Rescissible Contracts - Art. 1380 – 1389
Requisites
Kinds:
 Lesion (Art. 1381[1] [2], 1386)
 In Fraud of Creditors / Accion Pauliana (Art. 1381 [3], 1387-1388 in rel. Art. 1177)
 Contracts for Things Under Litigation (Art. 1381 [4])
 Declared by Law (Art. 1381 [5])
 Payments in Insolvency (Art. 1382)

Rescission
Nature and effects

o Universal Food Corp. v. Court of Appeals, G.R. No. L-29155, May 13, 1970
o Equatorial Realty Development, Inc. v. Mayfair Theater, Inc., G R. No. 106063,
November 21, 1996
o Guman, Bocaling & Co. v. Bonnevie, G.R. No. 86150, March 2, 1992
o Rivera v. Del Rosario, G.R. No. 144934, January 15, 2004

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 o Union Bank of the Philippines v. Ong, G.R. No. 152347, June 21, 2006
o Lee v. Bangkok Bank Public Company, Ltd., G.R. No. 173349, February 9, 2011
o Luz v. Baylon, G.R. No. 182435, Aug. 13, 2012
o Viloria v. Continental Airlines, Inc., G.R. No. 188288, Jan. 16, 2012
o Anchor Saving Bank v. Furigay, G.R. No. 191178, March 13, 2013
o Air France v. Court of Appeals, G.R. No. 104234, June 30, 1995

B. Voidable Contracts - Art. 1390 – 1402

Characteristics
Ratification/ Confirmation
How made, who may ratify, effects
Annulment
Who may bring, prescriptive period, effects

o Rural Bank of Caloocan v. Court of Appeals, G.R. No. L-32116, April 21, 1981
o Metropolitan Waterworks and Sewerage System v. Court of Appeals, G.R. No.
126000, October 7, 1998
o Guiang v. Court of Appeals, G.R. No. 125172, June 26, 1998
o De Braganza v. De Villa, 105 Phil 456
o Francisco v. Herrera, G.R. No. 139982, November 21, 2002
o Mangahas v. Brobio, G.R. No. 183852, October 20, 2010
o Fuentes v. Roca, G.R. No. 178902, April 21, 2010
o Hernandez v. Hernandez, G.R. No. 158576, March 9, 2011
o Viloria v. Continental Airlines, Inc., G.R. No. 188288, Jan. 16, 2012
o The Roman Catholic Church v. Pante, G.R. No. 174118, April 11, 2012
o Metropolitan Fabrics, Inc. v. Prosperity Credit Resources, Inc., G.R. No. 154390,
March 17, 2014

C. Unenforceable Contracts - Art. 1403 – 1408

Kinds
Statute of Frauds (in relation to E-Commerce Law, Parol Evidence Rule)
Executory, Executed, Partially Executory/Executed Contracts
Remedies

o Yuvienco v. Dacuycuy, G.R. No L-55048, May 27, 1981

o Coronel v. Constantino, G.R. No. 121069, February 7, 2003
o Regal Films. Inc. v. Concepcion, G.R. No. 139532, August 9, 2001
o National Power Corporation v. National Merchandising Corporation, G.R. No.
L-33819, October 23, 1982
o Cenido v.Apacionado, G.R. No. 132474, Nov. 19, 1999
o Villanueva v. Court of Appeals, G.R. No. 107624, January 28, 1997
o Municipality of Hagonoy v. Dumdum, G.R. No. 168289, March 22, 2010
o De Ouano v. Republic, G.R. No. 168770, February 09, 2011
o Cruz v. J. M. Tuason & Company, Inc., G.R. No. L-23749, April 29, 1977
o Orduña v. Fuentebella, G.R. No. 176841, June 29, 2010
o Iglesia Filipina Independiente v. Heirs of Taeza, G.R. No. 179597, February 3,
2014
o Averia v. Averia, G.R. No. 141877, August 13, 2004

D. Void/ Inexistent Contracts - Art. 1409 1422

Characteristics
Action for declaration of nullity
Prohibited contracts – effects and remedies

o Philippine Banking Corporation v. Lui She, 21 SCRA 52

o Francisco v. Herrera, G.R. No. 139982, November 21, 2002
o Agan v. Philippine International Air Terminals Co., Inc., G.R. No. 155001, May 5,
2003

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 o Menchavez v. Teves Jr., G.R. No. 153201, January 26, 2005
o Nool v. Court of Appeals, G.R. No. 116635, July 24, 1997
o Vigilar v. Aquino, G.R. No. 180388, January 18, 2011
o Land Bank of the Philippines v. Cacayurin, G.R. No. 191667, April 17, 2013
o Gonzalo v. Tarnate, G.R. No. 160600, Jan. 15, 2014
o Beumer v. Amores, G.R. No. 195670, Dec. 3, 2012
o Borromeo v. Mina, G.R. No. 193747, June 5, 2013
o Manotok IV v. Heirs of Barque, G.R. Nos. 162335 & 162605. March 6, 2012
o Department of Public Works and Highways v. Quiwa G.R. No. 183444. Feb. 8,
2012
o De Belen Vda. de Cabalu v. Tabu, G.R. No. 188417. Sept. 24, 2012
o Hulst v. PR Builders, Inc., G.R. No. 156364, September 3, 2007
o Fullido v. Grilli, G.R. No. 215014, February 29, 2016
o Teja Marketing v. Intermediate Appellate Court, G.R. NO. L-65510 March 9,
1987
o Asian Cathay Finance and Leasing Corporation v. Gravador, G.R. No.
186550, July 5, 2010

TRUSTS
Arts. 1440 – 1457
Nature/ Concept; Parties; Kinds
o Republic v. Sandiganbayan, G.R. No. 166859, April 12, 2011
o Heirs of Labanon v. Heirs of Labanon, G.R. No. 160711, August 14, 2004
o Huang v. Court of Appeals, G.R. No. 108525, September 13, 1994
o Salao v. Salao, 70 SCRA 65
o Cañezo v. Rojas, G.R. No. 148788, November 23, 2007

Express Trust
Art. 1443 – 1446
How established; How proven
o Philippine National Bank v. Aznar, G.R. No. 171805, May 30, 2011
o Ringor v. Ringor, G.R. No. 147863, August 13, 2004
o Medina v. Court of Appeals, G.R. No. L-26107, November 27, 1981
o Heirs of Labanon v. Heirs of Labanon, G.R. No. 160711, August 14, 2004

Repudiation
o Secuya v. Vda. de Selma, G.R. No. 136021, February 22, 2000
o Gomez v. Duyan, G.R. No. 144148, March 18, 2005

Prescription
o Heirs of Labanon v. Heirs of Labanon, G.R. No. 160711, August 14, 2004
o Tamayo v. Callejo, G.R. No. L-25563, July 28, 1972
o Mindanao Development Authority v. Court of Appeals, G.R. No. L-49087, April
5, 1982

Implied Trust
Art. 1447-1457

Resulting trust and Constructive trust

o Estate of Cabacungan v. Laigo, G.R. No. 175073, August 15, 2011
o Tala Realty Services Corp. v. Banco Filipino Savings and Mortgage Bank, G.R.
No. 137533, November 22, 2002
o Mendizabel v. Apao, G.R. No. 143185, February 20, 2006
o Iglesia Filipina Independiente v. Heirs of Taeza, G.R. No. 179597, February 3,
2014

How established; How proven

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 o Ty v. Ty, G.R. No. 165696, April 30, 2008
o O'Laco v. Co Cho Chit, G.R. No. 58010, March 31, 1993

Prescription; Laches
o Fabian v. Fabian, G.R. No. L-20449, January 29, 1968
o O'Laco v. Co Cho Chit, G.R. No. 58010, March 31, 1993
o Vda. de Rigonan v. Derecho, G.R. No. 159571, July 15, 2005
o Pilapil v. Heirs of Briones, G.R. No. 150175, February 5, 2007
o Aznar Brothers Realty Company v. Aying, G.R. No. 144773, May 16, 2005

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