Obligations and Contracts

Assignment No. 5
(May 22-24, 2020/ 7pm)

1. Essential features of the four classes of defective contracts (Rescissible, voidable,

unenforceable and void or inexistent contracts)
a) As to defect;
b) As to effect;
c) As to prescriptibility of action or defense;
d) As to susceptibility of ratification;
e) As to who may assail contracts;
f) As to how contracts maybe assailed;

ll. Read and Study Article 1381;

a) Contracts in Behalf of Ward;
b) Contracts in Behalf of Absentees;
1. Requisites in order to be rescissible
c) Contracts in Fraud of Creditors;
1. Requisites in order to be rescissible;
d) Contracts which refer to things under litigation;
e) Contracts by Insolvent;
1. Requisites
f) Contracts which by law are rescissible
Read Articles; 1098, 1189, 1526, 1534, 1539, 1542, 1556, 1560
1567, and 1659 (NCC)

III. Distinctions between Rescission and Resolution;

IV. Extent of Rescission (Read and Study)
V. Effect of Rescission in case of Lesion (Read and Study)
VI. Effect of Rescission upon third person (Read and Study)
VII. Presumptions of Fraud (Read and Study)
VIII. Read and Study;
A) Acquisition by third person in good faith; in bad faith;
B) Prescriptive period to file action for rescission;
IX. Read and Study the Chapter on Voidable Contracts;
A) Contracts which are voidable
B) Prescriptive period in filing action for annulment;
C) Concept of Ratification
a) Requisites of Ratification
b) Forms of Ratification
c) Effects of Ratification
Obligations and Contracts
Assignment No. 5
(May 22-24, 2020/ 7pm)

D) Effects of Annulment
E) Obligation of Mutual Restitution
F) Rule in case of Incapacity
G) Effect of Loss of the thing which constitutes the object of the contract
X. Read and Study the whole Chapter on Unenforceable Contracts:
A) Three (3) General Classes of Unenforceable Contracts;
B) Article 1403 (NCC)
a) Contracts without or In excess of authority;
b) Contracts Infringing Statute of Frauds;
c) Form required by Statute;
d) Effect of non-compliance with Statute;
e) Six (6) classes of contracts which are covered by the statute of Frauds;
f) Effect of Performance of Contract
g) Ratification of Unenforceable Contracts
XI. Read and Study the whole Chapter on Void or Inexistent Contracts;
A) Contracts which are void or Inexistent (1409 NCC)
B) Distinctions between void and Inexistent Contracts
C) Importance of knowing the Distinctions between void and inexistent contracts
D) Read and Study very well Article 1411 and 1412 (NCC)
a) Principle of Pari Delicto
b) Exceptions to the principle of Pari delicto;
XII. Read and Study the whole Chapter on Natural Obligations (Arts. 1423 to 1430 NCC)
XIII. Read and Study;
A) Concept of Estoppel
B) Kinds of Estoppel
1. Estoppel in Paris or by conduct
2. Estoppel by silence;
3. Estoppel by acceptance of benefits;
4. Estoppel by deed or by record;
5. Estoppel by judgement;
6. Estoppel by Laches
a) Basis
b) Elements
7. Distinctions between Laches and Prescription
XIV. Read and Study the whole Chapter on Trusts
Obligations and Contracts
Assignment No. 5
(May 22-24, 2020/ 7pm)

A) Concept of Trusts
B) Kinds of Trust
C) Distinctions between Express and Implied Trust
D) Prescriptibility of Actions to enforce trust;
E) Period of Prescription for bringing an action for Reconveyance, based on the
implied or constructive trust
F) Acquisition of Property by trustee through prescription