OUTLINE IN CIVIL LAW REVIEW II

SY 2019-2020, 2nd Semester

OBLIGATIONS and CONTRACTS

PART I - OBLIGATIONS

I. General Provisions

A. Definition, NCC 1156

B. Sources, NCC 1157

MetroBank v. Rosales, G.R. No. 183204, January 13,
2014

1. Law, NCC 1158

Pelayo v Lauron, 12 Phil. 453
Leung Ben v O’Brien 38 Phil. 182
Dela Cruz v Northern Theatrical Enterprise (95 Phil. 739
2. Contract, NCC 1159
Gaw v IAC (GR No. 70451, Mar 24, 1993
PSBA v CA, G.R. No. 84698, February 4, 1992
Cruz v Gruspe, G.R. No. 191431, March 13,2013
ACE Foods, Inc. v. Micro Pacific, G.R. No. 200602,
December 11, 2013
Perla Compania de Seguros, Inc v CA G.R. No. 78860
May 28, 1990
Telefast Coms v Castro G.R. No. 73867
February 29, 1988.
RCPI v CA G.R. No. 79578, March 13, 1991
3. Quasi-Contract, NCC 1160
Locsin II v. Mekeni Food Corporation, G.R. No. 192105,
December 9, 2013
Equitable PCI Bank v Ong G.R. No. 156207, September
15, 2006
Lacson v Lacson (24 SCRA 837
Sps. Villalva v RCBC Savings Bank G.R. No. 165661,
August 28, 2006
4. Delict, NCC 1161
Garcia vs. Ferro Chemicals, Inc., G.R. No. 172505,
October 1, 2014
People v Bayotas GR No. 102007, Sep 02, 1994
Sarmiento v CA(G.R. No. 122502. December 27, 2002
5. Quasi-Delict, NCC 1162
Barredo v. Garcia, 73 Phil 607 (1942)
Mendoza v. Arrieta, 91 SCRA 113 (1975)
Llana v. Biong, G.R. No. 182356, December 4, 2013
Saludaga v. FEU, G.R. No. 179337, Apr. 30, 2008
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 People’s Car v. Commando Security, 51 SCRA 40
Cruz v. Tuason & Co., 76 SCRA 543
Gutierez Hermanos v. Orense, 28 Phil 571
Adille v. CA, 157 SCRA 455
Andres v. Mantrust, 177 SCRA 618 (1989)
Puyat & Sons v. Manila, 7 SCRA 970
CBK Power Co. Ltd. V. CIR, G.R. Nos. 198729-30, Jan.
15, 2014
II. Nature and Effects of Obligations
A. Kinds of Prestations

1. To give, NCC 1163-1166

a. Rules regarding improvement, loss, or deterioration
NCC 1189, 1190, 1194, 566-571

2. To do, NCC 1167

Chavez v Gonzales, 32 SCRA 547
Tanguilig v CA, 266 SCRA 78 (1997)

3. Not to do, NCC 1168

B. Irregularity in Performance

1. Attributable to Debtor, NCC 1170

a. Fraud (dolo), NCC 1170, 1171, cf. NCC 1338
Woodhouse v Halili, 93 Phil 526 (1953)
Geraldez v CA, 230 SCRA 329 (1994)
Tongson v Emergency Pawnshop, G.R. No. 167874,
January 15, 2010
Metropolitan v. Prosperity, G.R. No. 154390, March 17,
2014

Effects of Fraud
i. Specific Performance, NCC 1233
(1) Specific/determinate thing, NCC 1244,
1170, 1165 (1), 1177
(2) Generic thing, NCC 1246
(3) Preserve, NCC 1163
(4) Deliver all its accessions, NCC 1166,
1164
(5) Interest, NCC 1176
Marquez v. Elisan Credit, G.R. No. 194642,
April 06, 2015

(6) Deliver all its accessories, NCC 1166

(7) Analogous circumstances
Surviving Heirs versus Lindo, et al., G.R. No.
208232, March 10, 2014

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 ii. Substituted performance, NCC 1165(2), 1167
iii. Rescission, NCC 1191-1192, 1786, 1788,
1484-1486, RA 6552

Boysaw v Interphil Promotions, 148 SCRA 364

(1987)
U.P. v De los Angeles, 35 SCRA 365 (1970)
Vda. de Mistica v Sps. Naguiat, 418 SCRA 72
(2003)
Fil-Estate v Vertex, G.R. No. 202079, June 10,
2013
Swire Realty v. Jayne Yu, G.R. No. 207133, March
09, 2015
Fong vs. Duenas, G.R. No. 185592, June 15, 2015
Cupino v. Pacific Rehouse, G.R. No. 205113,
August 26, 2015

iv. Damages, NCC 1170

(1) Unilateral obligations, NCC 1171
(2) Reciprocal obligations, NCC 1192

b. Negligence (culpa), NCC 1173, 1172

Effects of Negligence, NCC 1170, 2201, 2202, 1233, 1191

Gutierrez v Gutierrez, 56 Phil 177 (1932)
Vasquez v Borja, 74 Phil 560 (1944)

c. Delay (mora), NCC 1169

De La Rosa v BPI, G.R. No. L-22359,
November 28, 1924
SSS v Moonwalk, G.R. No. 73345, April 7, 1993
Vasquez v Ayala, G.R. No. 149734. November 19,
2004
Rivera vs. Spouses Chua, G.R. No. 184458, January 14,
2015
Maybank Philippines, Inc. v Spouses Tarrosa, G.R.
No. 213014, October 14, 2015

Kinds of delay
i. mora solvendi, NCC 1169
Abella v Gonzaga, 55 Phil 447 (1931)
Vasquez v Ayala Corp., G.R. No. 149734, Nov.
19, 2004
Agner v BPI, G.R. No. 182963, June 3, 2013

ii. mora accipiendi

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 Vda. de Villaruel v Manila Motor Co. 104 Phil 926
(1958)
Tengco v CA, G.R. No. 49852, October 19, 1989

iii. compensatio morae

Central Bank v CA, 139 SCRA 46 (1985)

2. Not Attributable to the Debtor

a. Fortuitous event, NCC 1174, 1221, 1165(3)
Nakpil v CA, L-47851, October 3, 1986
Fil-Estate v Ronquillo, G.R. No. 185789,
January 13, 2014

3. Other Provisions, NCC 1175, 1957, 1413, 1961, 1176

4. Remedies of creditors

a. Levy and execution, NCC 1177, 2236

b. Accion Subrogatoria, NCC 1177, 772

c. Accion Pauliana, NCC 1177, 1380-1389

Khe Hong Cheng v CA, 355 SCRA 701 (2001)
Siguan v Lim, 318 SCRA 725 (1999)

d. Accion Directa, NCC 1652, 1729, 1608, 1893

C. Transmissibility, NCC 1178

III. KINDS OF OBLIGATIONS

A. According to Demandability, NCC 1179-1192

1. Pure obligations
2. Conditional obligations
Gaite v Fonacier, 2 SCRA 830 (1961)
Gonzales v Heirs of Thomas, 314 SCRA 585
(1999)

Types of Conditions
a. As to effect on obligation-

i. Suspensive (condition precedent)

Gonzales v Heirs of Thomas, supra
Coronel v CA, 253 SCRA 15 (1996)

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 ii. Resolutory (condition subsequent)
Parks v Prov of Tarlac, 49 Phil 142 (1926)
Central Philippines v CA, 246 SCRA 511
(1995)
Quijada v CA, 299 SCRA 695 (1998)

b. As to cause or origin-
i. Potestative
Lim v CA, 191 SCRA 156 (1990)
Silos v PNB, G.R. No. 181045, July 2, 2014

(ii) Casual
Naga Telephone v CA, 230 SCRA 351
(1994)

(iii) Mixed
Osmena v Rama, 14 Phil 99 (1909)
Smith Bell v Sotelo Matti, 44 Phil 875 (1922)
Rustan Pulp v IAC, 214 SCRA 665 (1992)
Romero v CA, 250 SCRA 223 (1995)

(c) As to possibility - Possible and Impossible

Roman Catholic Archbishop v CA, 198 SCRA
100(1991)

(d) As to mode - Positive and Negative

(e) As to expression - Express and Implied

3. Obligations with a term, NCC 1193-1198

Types of Period/Term

(a) As to effect on obligation - Suspensive (ex die) and

Resolutory (in diem)

(b) As to source - Legal, Voluntary, and Judicial, NCC 1197,

1191, 1687 (2,3,4 sentences), 1180
Araneta v Phil Sugar Estate, 20 SCRA 330 (1967)
Central Philippines v CA, supra

(c) As to expression - Express and Implied

(d) As to definiteness - Definite and Indefinite

(e) Original Period and Grace Period

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 B. According to Plurality of Object, NCC 1199-1206

1. Alternative Obligations, NCC 1199-1206

(a) Kinds

(i) Simple alternative, NCC 1199

(ii) Facultative, NCC 1206

(b) Right to choose

(i) In general, NCC 1200-1201, 1205

(ii) Loss of right, NCC 1200, 1202-1203

Ong Guan Can vs. The Century Insurance Company, Ltd.,

G.R. No. L-21196, February 6, 1924

(c) Loss/Impossibility

(i) Liability for loss of thing/impossibility of

performance, NCC 1205
(ii) Creditor’s right to indemnity for damages,
NCC 1204

C. According to Plurality of Subjects, NCC 1207-1222

1. Single
2. Joint

(a) General rule, NCC 1207

(b) Presumption, NCC 1208
(c) Indivisibility, NCC 1209

3. Solidary

(a) When solidary, NCC 1207

(b) Kinds

Lafarge Cement v Continental Cement, 443 SCRA 522 (2004)

Sinamban v. China Banking Corporation, G.R. No. 193890,
March 11, 2015
LBP v Belle, G.R. No. 205271, September 02, 2015
UCPB v Uy, GR 204039, Jan. 10, 2018

D. According to Performance, NCC 1223-1225

1. Divisible

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 2. Indivisible

E. According to Sanction for Breach, NCC 1226-1230

Rivelisa Realty v. First Sta. Clara Builders, G.R. No. 189618, January
15, 2014

1. Obligations with a Penal Clause, NCC 2226-2228

SSS v Moonwalk, supra Lambert v Fox, G.R. No. L-7991,
January 29, 1914
Robes-Francisco v CFI, G.R. No. L-41093, October 30,
1978
Rivera v. Chua, G.R. No. 184458, January 14, 2015
New World Developers and Management vs. AMA,
G.R. No. 187930, February 23, 2015

2. Characteristics of penal clause

(a) Subsidiary or alternative, NCC 1227

(b) Exclusive, NCC 1226

III. Extinguishment of Obligations, NCC 1231

Metro Concast Steel Corp., et al. v. Allied Bank Corporation, G.R. No.
177921, December 4, 2013

A. Payment or performance, NCC 1232-1251

1. As to prestation

(a) Identity

National Marketing Corporation v Federation of United Namarco

Distributors, Inc., G.R. No. L-22578 January 31, 1973
Philippine Airlines, Inc. vs. Court of Appeals, G.R. No. 49188, 30
January 1990, 181 SCRA 557.
Equitable v Ng Sheung Ngor, 541 SCRA 223

Exceptions:

(i) Dacion en pago, NCC 1245

(ii) Novation

(b) Integrity, NCC 1233, cf. 1234, 1235, 1254(2)

(c) Indivisibility, cf. NCC 1248, 1225(2), 1248, 1208, 1211,

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 1290, 1720, 2065

2. As to parties

(a) Payor, Obligor, Debtor

Effect if Third Person, NCC 1236-1238, 1427

(b) Payee, Obligee, Creditor, NCC 1240, 1626

Effect if Third Person, NCC 1241-1242
Arbilon v Manglangit, GR 197920, Jan. 22, 2018

3. As to time and place of performance, NCC 1251, 1169

PCIB v Franco, G.R. No. 180069, March 5, 2014

NOTE: Special forms of payment

(1) Dacion en pago, NCC 1245

PNB v Dee, G.R. No. 182128, February 19, 2014
Filinvest v Philippine Acetylene, 111 SCRA 421 (1982)

(2) Application of payments, NCC 1252-1254

Reparations Commission v Universal Deep Sea Fishing,
83 SCRA 764 (1978)
Paculdo v Regalado, 345 SCRA 134 (2000)
Sps. Sinamban vs. China Bank, G.R. No. 193890,
March 11, 2015

(3) Cession, NCC 1255

(4) Tender of payment and consignation, NCC 1256-

1261
Soco v Militante, G.R. No. L-58961 June 28, 1983
Meat Packing Corp. v Sandiganbayan, 359 SCRA 409
Sps. Cacayurin v AFPMB, G.R. No. 171298, April 15,
2013
Bonrostro v Juan, G.R. No. 172346, July 24, 2013
Del Carmen v Sabordo, G.R. No. 181723, Aug. 11, 2014

B. Loss of Thing Due, NCC 1262-1269

1. Impossibility of Performance

(a) Original
(b) Supervening

C. Condonation or remission of the debt, NCC 1270-1274

Yam v CA, G.R. No. 104726, February 11, 1999
Golez v. Nemeño, G.R. No. 178317, September 23, 2015

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 D. Confusion or merger of rights of the creditor, NCC 1275-1277

E. Compensation, NCC 1278-1290

Gan Tion v CA, 28 SCRA 235 (1969)
Mirasol v CA, 351 SCRA 44 (2001)
Montemayor v Millora, G.R. No. 168251, July 27, 2011
Union Bank v DBP, G.R. No. 191555, January 20, 2014
First United v. Bayanihan, G.R. No. 164985, January 15, 2014
Philippine Trust Company vs. Sps. Roxas, G.R. No. 171897, October
14, 2015
California Manufacturing Company, Inc. v Advanced Technology
System, Inc., G.R. No. 202454, April 25, 2017
Rey v Anson, GR 211206, Nov. 7, 2018

F. Novation, NCC 1291 – 1304

1. Subjective or Personal
Sandico v Piguing, G.R. No. L-26115 November 29, 1971 [en banc]
Millar v CA, G.R. No. L-29981 April 30, 1971 [en banc]
Starbright Sales v Philippine Realty Corporation, G.R. No. 177936,
January 18, 2012
S.C. Megaworld Construction vs. Parada, G.R. No. 183804, September
11, 2013
Magbanua v Uy, G.R. No. 161003, May 6, 2005
Phil. Charter v Petroleum, G.R. No. 180898, April 18, 2012
Heirs of Franco v Gonzalez, GR 159709, June 27, 2012
ACE Foods, Inc. v. Micro Pacific, G.R. No. 200602, December 11, 2013
Wellex Group vs. U-Land Airlines, supra
BPI v. Domingo, G.R. No. 169407, March 25, 2015
Sps. Valenzuela v Kalayaan, G.R. No. 163244, June 22, 2009
Arco Pulp v Lim, G.R. No. 206806, June 25, 2014

2. Objective or real
3. Mixed

G. Invalid payment, NCC 1243

H. Annulment
I. Rescission
J. Fulfillment of a Resolutory Condition
K. Prescription
L. Death in certain Instances
M. Renunciation by the creditor, NCC 6
N. Compromise
O. Arrival of a Resolutory Term
P. Mutual Desistance

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 Saura v DBP, April 27, 1972

Q. Unilateral Withdrawal
GBMLT Manpower vs. Malinao, G.R. No. 189262, July 6, 2015
R. Change of Civil Status
S. Rebus Sic Stantibus, NCC 1267
Naga TelCo v CA, G.R. No. 107112, February 24, 1994
PNCC v CA, G.R. No. 116896, May 5, 1997
Osmena v SSS, G.R. No. 165272, September 13, 2007
So v FoodFest, G.R. No. 183268, April 7, 2010
Comglasco Corporation v. Santos Car Check Center, G.R. No.
202989, March 25, 2015
Tagaytay Realty v. Gacutan, G.R. No. 160033, July 01, 2015
Iloilo Jar Corporation v. COMGLASCO, G.R. No. 219509,
January 18, 2017

T. Want of Interest
U. Judicial Insolvency

NATURAL OBLIGATIONS, Arts. 1423-1430

Part II - CONTRACTS

I. General Provisions

A. Definition, NCC 1305

Heirs of Intac v CA, G.R. No. 17321, October 11, 2012
MIAA v Avia, G.R. No. 180168, February 27, 2012
Heirs of Uy v Castillo, G.R. No. 176425, June 5, 2013
Specified Contractors v Pobocan, GR 212772, Jan. 11, 2018

B. Characteristics

1. Obligatory force, NCC 1315, 1314

R.S. Tomas, Inc. v Rizal, G.R. No. 173155, March 21,

2012

2. Mutuality, NCC 1308-1310

PNB v Manalo, G.R. No. 174433, February 24, 2014

Silos v PNB, G.R. No. 181045, July 2, 2014

3. Relativity, NCC 1311

PNB v. Dee, et al., G.R. No. 182128, February 19, 2014

MBTC vs. Chiok, G.R. No. 171652, November 26, 2014

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 FBDC v. Fong, G.R. No. 209370, March 25, 2015
Rojales v Dime, GR 194548, February 10, 2016

Exceptions:

(a) Accion Pauliana

(b) Accion Directa
(c) Article 1312
(d) Stipulation pour autrui, NCC 1311(2)

4. Autonomy of will, NCC 1306

Malbarosa v CA, G.R. No. 125761, 2003

Capalla v COMELEC, G.R. No. 201112, June 2012
(concurring of J. Sereno)

C. Elements of a Contract

Gironella v. PNB, G.R. No. 194515, September 16, 2015

1. Essential, NCC 1318

(a) Consent of the contracting parties, NCC 1319

(b) Offer, NCC 1321, 1323-1326
(c) Acceptance, NCC 1320, 1322, 1319
Rosenstock v Burke, 46 Phil 217 (1924)
Sanchez v Rigos, 45 SCRA 368 (1972)
Capalla v COMELEC, G.R. No. 201112, June
2012 (concurring of J. Sereno)
Malbarosa v CA, 402 SCRA 108 (2003)
Traders Royal Bank v Cuison, June 5, 2009
Talampas vs. Moldex Realty, G.R. No. 170134,
June 17, 2015

(d) Object, NCC 1347 – 1349

Blas v Santos, 1 SCRA 899 (1961)
Tanedo v CA, 252 SCRA 80 (1996)

(e) Cause, NCC 1350 – 1355

Liguez v CA, 102 Phil 577 (1957)
Carantes v CA, 76 SCRA 524 (1977)
Sps. Buenaventura v CA, 416 SCRA 263 (2003)

NOTE: Natural Elements

(1) Right to resolve, NCC 1191

(2) Warranties in sales contracts

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 D. Stages of a Contract, NCC 1315, 1316
Bugatti v CA, et al, G.R. No. 138113, October 17, 2000

E. Classification of Contracts

1. According to degree of dependence

(a) Preparatory
(b) Principal
(c) Accessory

2. According to perfection

(a) Consensual
(b) Real

3. According to form

(a) Common or informal

(b) Special or formal

4. According to purpose

(a) Transfer of ownership

(b) Conveyance of use
(c) Rendition of service

WT Construction, Inc. v. The Province of Cebu, G.R. No.

208984, September 16, 2015

5. According to subject matter

(a) Things
(b) Services

6. According to the nature of the obligation

(a) Bilateral
(b) Unilateral

7. According to cause

(a) Onerous
(b) Gratuitous

8. According to risk

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 (a) Commutative
(b) Aleatory

9. According to name

(a) Nominate
(b) Innominate, NCC 1307
Tinsay v. Yusay, 47 Phil. 639 (1925)
Dizon v Gaborro, 83 SCRA 688 (1978)

II. Form of Contracts, NCC 1356-1358

Hernaez v de Los Angeles, 27 SCRA 1276 (1969)
Zamora v Miranda, G.R. No. 162930, December 5, 2012
SMPI vs. BF Homes, G.R. No. 169343, August 5, 2015
Kabisig Real Wealth v Young Builders, G.R. No. 212375, JAn.
25, 2017
Sps. Aguinaldo v. Torres, G.R. No. Sept. 11, 2017
A. For validity
B. For enforceability
C. For registrability

III. Reformation of Instruments, NCC 1359-1369

Garcia v Bisaya, 97 Phil 609 (1955)
Bentir v Leande, 330 SCRA 591 (2000)
Sarming v Dy, 383 SCRA 131 (2002)
Makati Condominium v Multi-Realty, GR 185530, April 18, 2018

IV. Interpretation of Contracts, NCC 1370 – 1379, Rule 130,

Secs. 10-19, Rules of Court
Wellex Group vs. U-Land Airlines, G.R. No. 167519, January 14, 2015
Sps. Bonifacio vs. Kimwa Construction, G.R. No. 171601, April 8, 2015

V. Defective Contracts

A. Rescissible Contracts, NCC 1380-1389

Oria v McMicking, 21 Phil 243 (1912)
Siguan v Lim, 318 SCRA 725 (1999)
Velarde v CA, 361 SCRA 56 (2001)
Miguel v Montanez, G.R. No. 191336, January 25, 2012
Ada v Baylon, G .R. No. 182435, August 13, 2012

B. Voidable Contracts, NCC 1390 – 1402

Caldwallader v Smith, Bell, 7 Phil 461 (1907)
PNB v Phil. Vegetable, G.R. No. L-25400, January 14, 1927
Singsong v Isabela Sawmill, 88 SCRA 623 (1979)
Metropolitan v. Prosperity, G.R. No. 154390, March 17, 2014
Poole-Blunden v. Union Bank, G.R. No. 205838, November 29, 2017

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 Ratification, NCC 1392-1396

Uy Soo Lim v Tan Unchuan, 38 Phil 552 (1918)

Viloria v CAI, G.R. No. 188288, January 16, 2012
ECE Realty v Mandap, G.R. No. 196182, September 1, 2014

1. Incapable of giving consent, NCC 1327

2. Insanity, NCC 1328-1329
3. Mistake, NCC 1330-1343
4. Violence, NCC 1335(1)
5. Intimidation, NCC 1335(2)
6. Undue influence, NCC 1337
7. Fraud, NCC 1332, 1338-1344

Tongson v Emergency Pawnshop, G.R. No. 167874, January

15, 2010
Roman Catholic Church v Pante, April 11, 2012
ECE Realty and Development Inc. v Rachel Mandap,
G.R. No. 196182, September 1, 2014
Metropolitan v. Prosperity, G.R. No. 154390, March 17, 2014

C. Unenforceable Contract, NCC 1403 – 1408, 1317

PNB v Phil. Vegetable Oil, 49 Phil 857 (1927)
Carbonnel v Poncio, 103 Phil 655 (1958)
Limketkai v CA, March 29, 1996
Swedish Match v CA, 441 SCRA 1 (2004)
Neri v Heirs of Uy, G.R. No. 194366, October 2012
Iglesia v Heirs Of Bernardino Taeza, G.R. No. 179597, Feb. 3,
2014
Natividad v Natividad, GR 198434, February 29, 2016

D. Void Contracts, NCC 1409-1410, 1411-1412, 1413-1416,

1417-1419, 1420-1422

1. NCC 1345-1346
2. NCC 1490-1491
3. NCC 1378
4. NCC 1409

De Leon v. Dela Llana, G.R. No. 212277, February 11, 2015

Tolentino vs. Sps. Latagan, G.R. No. 179874, June 22, 2015
Tingalan vs. Sps. Melliza, G.R. No. 195247, June 29, 2015
Clemente vs. CA, G.R. No. 175483, October 14, 2015
Tanchuling v Cantela, GR 209284, November 10, 2015
Reyes v Asuncion, GR 196083, November 11, 2015
Fullido v Grilli, GR 215014, February 29, 2016
Pena v De Los Santos, GR 202223, March 2, 2016
Heirs of Arao v Heirs of Eclipse, GR 211425, Nov. 19, 2018

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 5. NCC 1422
6. NCC 1782
7. FC 87

Liguez v CA, supra

Rellosa v Gaw Cheen Hum, 93 Phil 827 (1953)
Frenzel v Catito, 406 SCRA 55 (2003)
Gonzalo v Tarnate, Jr., G.R. No. 160600, January 15 2014

Contracts of Adhesion
Piltel v Tecson, May 7, 2004
Alpha Insurance v Castor, G.R. No. 198174, September 2, 2013
Ejercito vs. Oriental Assurance Corporation, G.R. No. 192099,
July 8, 2015
Cabanting v BPI, GR 201927, February 17, 2016
Buenaventura v Metrobank, G.R. No. 167082, August 3, 2016

PART III – SPECIAL CONTRACTS

SALES

1. Definition and Essential Requisites - NCC 1458, 1460, 1475, 1459, 1483,
1505, 1468, 1467, 1462, 1478, 1483.

Sanchez v Mapalad Realty, 541 SCRA 397

David v Misamis Occidental, July 11, 2012
ACE Foods, Inc. v. Micro Pacific, G.R. No. 200602, December 11, 2013
Heirs of Lopez vs. DBP, G.R. No. 193551, November 19, 2014

2. Parties to a Contract of Sale

A. Who has capacity to enter into a sale contract?

Catholic Church vs Pante, G.R. No. 174118, April 11, 2012
Sps. Torda vs. Sps. Jaque, G.R. No. 199852, November 12, 2014
Repuela v Estate of Larawan, G.R. No. 219638, Dec. 7, 2016

B. Void or Prohibited Sales, 1490, 1491, 1492

Laig v CA, November 21, 1978
Dir. v Ababa, February 27, 1979
Sarili v. Lagrosa, G.R. No. 193517, January 15, 2014

3. Subject Matter of a Contract of Sale, 1458, 1459, 1460, 1461, 1462, 1465

4. Price, 1475, 1496, 1471

Guizon v Terry, G.R. No. 191914, August 9, 2017

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5. Equitable Mortgage, NCC 1602, 1603, 1604
Arches v Diaz, April 30, 1973
Rockville v Miranda, Oct. 2, 2009
Macaslang v Zamora, May 30, 2011
Aludos v Suerte, June 18, 20
Garcia v Villar, G.R. No. 158891, June 27, 2012
Sps. Torda vs. Sps. Jaque, G.R. No. 199852, November 12, 2014
Heirs of Soliva vs. Soliva, G.R. No. 159611, April 22, 2015
Repuela v Estate of Larawan, G.R. No. 219638, Dec. 7, 2016

6. Formation of contract of sale

Contract of Sale/Contract to Sell
Laforteza v Machuca, 333 SCRA 643 (2000)
Sps. Valenzuela v Kalayaan, G.R. No. 163244, June 22, 2009
Montecalvo v Heirs of Eugenia Primero, 624 SCRA 575 (July 9, 2010)
Diego v Diego, G.R. No. 179965, February 20, 2013
SP. Tumibay vs Sp. Lopez , G.R. No.171692, June 3, 2013
Optimum Development Bank v. Spouses Jovellanos, G.R. No. 189145,
December 4, 2013
Roque v Aguado, G.R. No. 193787, April 7, 2014

7. Option to Buy/Sell, Right of First Refusal - NCC 1479, 1324

Sanchez v Rigos, 45 SCRA 368 (1972)
Laforteza v Machuca, 333 SCRA 643 (2000)
Ang Yu v CA, G.R. No. 109125, December 2, 1994 (en banc)
Equatorial v Mayfair, 264 SCRA 483 (1996) (en banc)
Paranaque King v CA, 268 SCRA 727 (1997)
Litonjua Inc. vs. L & R Corporation, G.R. No. 130722 December 9, 1999
- EN BANC
Rosencor v Inquing, G.R. No. 140479 March 8, 2001
Eulogio v Apeles, 576 SCRA 561
Tuazon v del-Rosario-Suarez, G.R. 168325, December 3, 2010
PUP v Golden Horizon, 615 SCRA 478 (2010)

8. Earnest Money – NCC 1482

Cifra v CA, 198 SCRA 91
Serrano v Caguiat, 517 SCRA 57
First Optima Realty Corporation vs. Securitron Security Services, Inc.,
G.R. No. 199648, January 28, 2015

9. Form of Contract of Sale – NCC 1483

10. Performance of Contract of Sale – NCC 1497, 1498, 1499, 1500, 1501,
1503, 1522, 1523, 1539, 1540, 1542
NFF Industrial Corporation v. G & L Associated Brokerage, G.R. No. 178169,
January 12, 2015

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11. Double Sales - NCC 1544
De Leon v Ong, 611 SCRA 381 (February 2, 2010)
Roman Catholic Church v Pante, supra
Sabitsana v Muertegui, G.R. No. 181359, August 5, 2013
Alfaro et al v Spouses Dumalagan, et al, G.R. No. 186622, January 22,
2014
Sps. Suntay vs. Keyser Mercantile, Inc., G.R. No. 208462,
December 10, 2014
Sps. Magdalino vs. Bragat, G.R. No. 187013, April 22, 2015
Mendoza vs. Sps. Armando, G.R. No. 179751, August 5, 2015
Domingo v Manzano, G.R. No. 201883, Nov. 16, 2016

12. Risk of Loss – NCC 1480, 1493, 1494

13. Documents of title – Art. 1507, 1508, 1516, 1519, 1520

14. Remedies of unpaid seller – NCC 1525, 1526-1528, 1530-1535

15. Warranties – NCC 1545-1581; Recoupment, NCC 1599 –

Bignay v Union Bank, G.R. No. 171590, February 12, 2014
Phil. Steel Coating v Quinones, G.R. No. 194533, April
19, 2017

16. Breach of Contract of Sale

1. Sale of Movables - NCC 1484 - 1486

Tajanglangit v Southern Motors, 54 O.G. No. 8, p. 2582
Filinvest v Phil. Acetylene, 111 SCRA 421 (1982)
De La Cruz v Asian Consumer 214 SCRA 103

2. NCC 1592, Rep. Act 6552, An Act To Provide Protection To Buyers Of

Real Estate On Installment Payments.
De los Santos v CA, G.R. No. 147912, April 26, 2006
Fedman v Agcaoili, August 31, 2011
Manuel Uy & Sons, Inc. vs. Valbueco, G.R. No. 179594, September 11,
2013
Sebastian vs. BPI Family Bank, G.R. No. 160107, October 22, 2014
Tagaytay Realty v. Gacutan, G.R. No. 160033, July 01, 2015

17. Extinguishment of sale – NCC 1600

18. Conventional Redemption (i.e., sale pacto de retro) – Arts. 1601,1606,

1616, see also: 1607, 1628
David v David, G.R. No. 162365, January 15, 2014
CSCST vs. Misterio, G.R. No. 179025, June 17, 2015
Rojales v Dime, GR 194548, February 10, 2016
Heirs of Jarque v Jarque, GR 196733, Nov. 21, 2018

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19. Legal Redemption – Arts. 1619-1623
Butte v Uy, February 28, 1962
Conejero v CA, April 29, 1966
Alonzo v CA, May 29, 1987 (supra, Family Relations)

20. Assignment of Credits, NCC 1624-1635

Serfino v FEBTC, G.R. No. 171845, October 10, 2012

LEASE

1. Definitions – NCC 1642 – 1649

Tan Siok Kuan v Ho, GR No. 175085, June 1, 2016
Jusayan vs. Sombilla, G.R. No. 163928, January 21, 2015
Locsin II v. Mekeni Food Corporation, G.R. No. 192105,
December 9, 2013
Racelis v Javier, GR 189609, Jan. 29, 2018

2. Some Distinctions
Yulo v. Yang, August 28, 1959 – en banc

3. Some Rules – NCC 1649-1653; 1670-1672; 1682

4. Rights and Obligations of Lessor and Lessee – NCC 1674-1679

Manlaraz v Salazar, 52 O.G. No.2, p. 802
Nava v Yaptinchay, 44 O.G. No. 9, p. 3332
Sime Darby v Goodyear, 2011
Aludos v Suerte, 2012
VSD Realty v Uniwide, G.R. No. 170677, October 24, 2012
Inocencio vs. Hospicio de San Jose, G.R. No. 201787, September 25, 2013
Spouses Aquino v. Spouses Aguilar, G.R. No. 182754, June 29, 2015
Peralta v Raval, G.R. No. 188467, March 29, 2017

PARTNERSHIP

1. Existence/ Elements of a Partnership - NCC 1767, 1784

Heirs of Jose Lim, G.R. No. 172690, March 3, 2010
J. Tiosejo v Sps. Ang, G.R. No. 174149, September 8, 2010
Realubit v Jaso, 2011
Saludo v PNB, GR 193138, August 20, 2018

2. Distinguish universal from general partnership

3. Term of partnership

4. Distinguish a capitalist partner from an industrial partner

5. Rules of Liability

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 Island Sales v. Pioneers, July 31, 1975, 65 SCRA 554

6. Limited Partnership

7. Dissolution, NCC 1832-1834

Singsong v. Isabela Sawmill, 88 SCRA 623 (1979)

AGENCY

1. Definition - Arts. 1868-1869, 1874, 1875

Yoshizaki v. Joy Training Center, G.R. No. 174978, July 31, 2013

2. Scope of Authority

i. Liabilities of Agent
ii. Scope of the powers of an agent
iii. Obligations of one dealing with an agent

Country Bankers v Keppel, G.R. No. 166044, June 18, 2012

Republic v Banez, GR 169442, October 14, 2015
NFA v. IAC, 184 SCRA 166

iv. Rights and obligations of the principal

Prieto v CA, GR 158597, June 18, 2012

Urban Bank v Pena, G.R. No. 145817, October 19, 2011
Villaluz v LandBank, G.R. No. 192602, Jan. 18, 2017
Citystate Savings v Tobias, GR 227990, March 7, 2018
Ayala Land v ASB Realty, GR 210043, Sept. 26, 2018

v. Irrevocable Agency/ Agency Coupled with an Interest

Bautista v NICORP, GR 214057, October 19, 2015
Viloria v Continental Airlines, G.R. No. 188288, January 16, 2012
Recio v Altamirano, G.R. No. 182349, July 24, 2013
Patrimonio v Gutierrez, G.R. No. 187769, June 4, 2014
Salvador v. Gonzales, G.R. No. 199990, February 04,
2015
V-Gent, Inc. vs. Morning Star Travel, G.R. No. 186305,
July 22, 2015

vi. Implied Agency

Saldana v Niamatali, GR 226587, Nov. 21, 2018

3. Extinguishment, NCC 1919-1932

Dela Rama SS v. Tan, May 21, 1956, 99 PHIL 1034

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 Perez v. PNB. July 30, 1966, 17 SCRA 835
Lim v Saban, G.R. No. 163720, December 16, 2004
Bitte v Jonas, GR 212256, December 9, 2015

TRUSTS
1. In General
2. Kinds of Trusts
a. Express
b. Implied
Valdez v. olarga, 51 SCRA 71
Uy Aloc v. Cho Jan Jing, 19m Phil. 202
Escober v. Locsin, 74 Phuil 86

COMPROMISE

1. Void - NCC 2035, 2037, 2041

Samonte v. Samonte, June 25, 1975, 64 SCRA 24
Garcia v Garcia, November 14, 2011
Riviera Golf Club vs. CCA Holdings, G.R. No. 173783, June 17, 2015
Cathay Land v Ayala Land, G.R. No. 210209, August 9, 2017

PREFERENCE OF CREDITS

1. Rep. Act No. 11057, The Personal Property Security Act

NCC 2241-2251
NCC 110, Labor Code

Carried Lumber v. ACCFA, April 22, 1975, 63 SCRA 411

Consuelo Metal v Planters, 555 SCRA 465

2. Insolvency Law, Act. No. 1956 as amended;

Republic Act No. 10142 (Financial Rehabilitation and Insolvency Act of 2010),
Sec. 133
Rep. Act No. 11057, The Personal Property Security Act
Gateway Electronics v Asiabank, 574 SCRA 698
Aquino vs. Pacific Plans, Inc., G.R. No. 193108, December 10, 2014

CREDIT TRANSACTIONS

1. Common Provisions – NCC 1156, 1249, 1305, 1306, 1316, 1933 and 1934

2. Commodatum – NCC 1935-1952

a. Obligations of the bailee: Arts. 1941-1945

b. Obligations of the bailor – Arts. 1946-1952
Pajuyo v CA, 430 SCRA 492

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3. Simple Loan or Mutuum, NCC 1953-1955
MetroBank v Rosales et al, G.R. No. 183204, January 13, 2014
Jalandoni v Encomienda, G.R. No. 205578, March 1, 2017
Ong v BPI Family, GR 208638, Jan. 24, 2018
PNB v CUA, GR 199161, April 18, 2018
Abacus Capital v Tabujara, GR 197624, July 23, 2018

4. Interest, NCC 1956-1961, 2209, 2212-2213

Equitable v Ng Sheung Ngor, 541 SCRA 223
Nacar v. Gallery Frames, August 13, 2013, G.R. No. 189871
Benvidez v. Salvador, G.R. No. 173331, December 11, 2013
First United v. Bayanihan, G.R. No. 164985, January 15, 2014
Lumantas v. Calapiz, G.R. No. 163753. January 15, 2014
De la Paz v L&J Development Company, G.R. No. 183360, Sept. 8, 2014
Federal Builders v Foundation Specialists, G.R. No. 194507, Sept. 8, 2014
Sun Life Canada vs. Tan Kit, G.R. No. 183272, October 15, 2014
Bernal v Villaflor, GR 213617, April 18, 2018;
Isla v Estorga, GR 233974, July 2, 2018 [perlas-bernabe];
Odiamar v Valencia, GR 213582, Sept. 12, 2018 [perlas-bernabe]

5. Deposit, NCC 1962-1967

a. Kinds
b. Obligations of the Depositary
c. Obligations of the Depositor
d. Necessary Deposit

YHT Realty v CA, 451 SCRA 638

6. Guaranty and Suretyship, NCC 2157-2081

Phil-Am v. Ramos, February 28, 1966, 16 SCRA 298
Toh v Solid Bank, 408 SCRA 554
Autocorp Group v Intra Strata, 556 SCRA 250
Gateway Electronics v Asiabank, 574 SCRA 698
Aglibot v Santia, G.R. No. 185945, December 5, 2012
Trade v. Asia, G.R. No. 187403, February 12, 2014
Lim v Security Bank, G.R. No. 188539, March 12, 2014
Stronghold Insurance Company vs. Sps. Rune, G.R. No. 204689,
January 21, 2015
CCC Insurance vs. Kawasaki Steel, G.R. No. 156162, June 22, 2015
Allied Banking Corporation v. Yujuico, G.R. No. 163116, June 29, 2015

7. Quasi-Contracts, NCC 2154-2163

a. Negotiorum Gestio
b. Solutio Indebiti
c. Others
MIAA v COA, G.R. No. 194710, February 14, 2012
PNB v Chong, G.R. No. 170865, April 25, 2012

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 Asia Trust v Tuble, G.R. No. 183987, July 25, 2012
Metropolitan Bank v Absolute, G.R. No. 170498, January 9, 2013
Rivelisa vs. First Sta. Clara, G.R. No. 189618, January 15, 2014
Golez v. Nemeño, G.R. No. 178317, September 23, 2015

(d) Application of Proceeds, Sec. 52

(e) Rights of Buyers, Sec. 53
(3) Retention of Collateral, Sec. 54
8. Legal Pledges, NCC 2121-2122, 546, 612, 1731, 19112-1914, 1951, 1944,
1994, 2004

9. Pactum Commissorium – Arts. 2087-2088, 2115, 1454

Garcia v. Villar, G.R. No. 158891, June 27, 2012

10. Real Estate Mortgage, Act 3135 as amended

Paradigm v BPI, G.R. No. 191174, June 07, 2017
Isaguirre v de Lara, 331 SCRA 803
Garcia v. Villar, G.R. No. 158891, June 27, 2012
Land Bank v Poblete, G.R. No. 196577, February 25, 2013
Maglasang v Manila Bank, G.R. No. 171206, September 23, 2013
PBCOM v. Yeung, G.R. No. 179691, December 4, 2013
UCPB v. Lumbo, G.R. No. 162757, December 11, 2013
DBP v. Guariña Agricultural, G.R. No. 160758, January 15, 2014
Marquez v Alindog, G.R. No. 184045, Jan 22 2014
Homeowners v Felonia et al, G.R. No. 189477, February 26, 2014
Okabe v Saturnino, G.R. No. 196040, August 26, 2014 [en banc]
GE Money Bank vs. Sps. Dizon, G.R. No. 184301, March 23, 2015
Bascara vs. Pangilinan, G.R. No. 188069, June 17, 2015
Claudio v. Spouses Saraza, G.R. No. 213286, August 26, 2015
Carodan v China Bank, GR 210542, February 24, 2016
Ruiz v Dimailig, G. R. No. 204280, Nov. 9, 2016
Penaflor v Dela Cruz, G.R. No. 197797, August 9, 2017
Teves v Integrated Credit, GR 216714, April 4, 2018;
Tabuada v Tabuada, GR 196510, Sept. 12, 2018

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