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OBLIGATIONS AND CONTRACTS
ATTY. NESTOR M. LEYNES, III
(BASED ON THE OUTLINE OF PROF. EDUARDO S. LABITAG)
OBLIGATIONS
I. Definition - Art. 1156
II. Sources - Art. 1157
A. Law - Art. 1158
B. Contracts - Art. 1159, 1305
C. Quasi-Contracts - Art. 1160, 2142
1. Negotiorum Gestio - Art. 2144
2. Solutio Indebti - Art. 2154
3. Others - Art. 2164 - 2175
D. Delicts - Art. 1161
E. Quasi-Delicts - Art. 1162, 2176
1. Vicarious Liability - Art. 2180, Art. 218, 219 of the Family Code
2. Civil Liabilty From Delicts - Art. 1161, Rule 111 of the Rules of Court
Barredo v. Garcia, 73 Phil. 607 (1942)
Mendoza v. Arrieta, 91 SCRA 113 (1979)
PSBA v. CA, 205 SCRA 729 (1992)
Amadora v. CA, 160 SCRA 315 (1988)
Air France v. Carrascoso, 18 SCRA 155 (1966)
III. Prestations
A. To Give
1. Specific Thing
a. Deliver Thing Itself - Art. 1244
b. Preserve the Thing - Art. 1163
c. Deliver Accessions and Accessories - Art. 1166
d. Deliver Fruits - Art. 1164
2. Generic Thing1
B. To Do - Art. 1244
C. Not To Do - Art. 1244
IV. Classifications
A. Pure or Conditional - Art. 1179 - 1192
1. Pure - Art. 1179, Par. 1
2. Conditional - Art. 1181
Gaite v. Fonacier, 2 SCRA 830 (1961)
Gonzales v. Heirs of Thomas, 314 SCRA 585 (1999)
a. Kinds
i. Effect on Obligation - Art. 1181
Gonzales v. Heirs of Thomas, supra
- Suspensive - Art. 1187, 1188
Coronel v. CA, 263 SCRA 15 (1996)
- Resolutory
Parks v. Province of Tarlac, 49 Phil. 142 (1926)
Central Philippine University v. CA, 246 SCRA 511 (1995)
Quijada v. CA, 299 SCRA 695 (1998)
ii. Cause or Origin
- Potestative - Art. 1182
Francisco Lao Lim v. CA, 191 SCRA 150 (1990)
- Casual
Naga Telephone Co., Inc. v. CA, 230 SCRA 351 (1994)
- Mixed
Osmeña v. Rama, 14 Phil. 99 (1909)
Hermosa v. Longora, 93 Phil. 977 (1953)
Taylor v. Uy Tieng Piao, 43 Phil. 873 (1922)
Smith Bell v. Sotelo Matti, 44 Phil. 874 (1922)
Rustan Pulp and Paper Mills v. IAC, 214 SCRA 665 (1992)
Romero v. CA, 250 SCRA 223 (1995)
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iii. Possibility – Art. 1183
Roman Catholic Archbishop of Manila v. CA, 198 SCRA 300 (1991)
iv. Mode
- Positive - Art. 1184
- Negative - Art. 1185
b. Loss, Deterioration, Improvement - Art. 1189, 1190
Heirs of Timoteo Moreno v. Mactan — Cebu International Airport Authority, 413 SCRA 502 (2003)
c. Prevention by the Obligor - Art. 1186
Taylor v. Uy Tieng Piao, supra
Herrera v. Leviste, 135 SCRA 129 (1985)
B. Period / Term - Art. 1193 - 1198
1. Kinds
a. Suspensive - Art. 1193, Par. 1
b. Resolutory - Art. 1193, Par. 2
2. Loss, Deterioration, Improvement - Art. 1194, 1189
3. Payment in Advance - Art. 1195
4. Benefit
a. Presumption - Art. 1196
Lachica v. Araneta, 47 OG No. 11, 5699, August 4, 1949
Ponce de Leon v. Syjuco, 90 Phil. 311 (1951)
Buce v. CA, 332 SCRA 151 (2000)
b. Debtor Loses Right - Art. 1198
5. Court to Fix Period - Art. 1197
Araneta v. Philippine Sugar Estate Development Co., 20 SCRA 330 (1967)
Central Philippine University v. CA, supra
Deudor v. JM Tuason, 2 SCRA 129 (1961)
C. Alternative / Facultative - Art. 1199 - 1206
1. Right of Choice - Art. 1200
2. Notice of Choice - Art. 1201
3. Loss or Impossibility of One or All Prestations - Art. 1202 - 1205
3
4. Facultative - Art. 1206
D. Joint or Solidary - Art. 1207 - 1222
1. Joint
a. Presumption - Art. 1207, 1208
b. Effect - Art. 1207, 1208, 1277
2. Solidary
a. Kinds
i. Source - Art. 1208, 1915, 1945, 2194, Art. 119 of the Revised Penal Code
ii. Parties Bound, Uniformity - Art. 1211
Inchausti v. Yulo, 34 Phil. 978 (1914)
Inciong v. CA, 257 SCRA 578 (1996)
RCBC v. CA, 178 SCRA 739 (1989)
Lafarge Cement Phil. v. Continental Cement, 443 SCRA 522 (2004)
b. Effect
i. Solidary Creditor
- Common Debtor - Art. 1214 - 1217, Par. 1
- Solidary Co-Creditor/s - Art. 1212, 1213, 1215, Par. 2
ii. Solidary Debtor
- Common Creditor - Art. 1207, 1215, Par. 1
- Solidary Co-Debtor/s - Art. 1217 – 1221
Jaucian v. Querol, 38 Phil. 707 (1918)
RFC v. CA, O.G. No. 6, p. 2467
Quiombing v. CA, 189 SCRA 325 (1990)
Inciong v. CA, supra
c. Defenses of a Solidary Debtor Against the Creditor - Art. 1222
Inchausti v. Yulo, supra
Alipio v. CA, 341 SCRA 441 (2000)
3. Joint Indivisible - Art. 1209, 1210, 1224
E. Divisible or Indivisible - Art. 1223 - 1225
1. Divisible - Art. 1223, 1233
4
2. Indivisible
a. Kinds
i. Natural - Art. 1225, Par. 1
ii. Legal - Art. 1225, Par. 3
iii. Conventional - Art. 1225, Par. 3
b. Presumptions - Art. 1225, Par. 1, 2
c. To Do - Art. 1225, Par. 3
d. Effects - Art. 1223, 1224, 1233
F. Penal Clause - Art. 1226 - 1230
1. Demandability - Art. 1226, Par. 2
2. Effects
a. Substitute for Indemnity for Damages and Payment of Interest - Art. 1226
Makati Development Corp. v. Empire Insurance Co., 20 SCRA 557 (1967)
Tan v. CA, 367 SCRA 571 (2001)
Country Bankers Insurance v. CA, 201 SCRA 458 (1991)
b. Debtor Not Exempt from Performance - Art. 1227
c. Creditor Cannot Demand Performance and Penalty - Art. 1227
d. Ceditor Cannot Collect Other Damages - Art. 1226
e. Penalty Equitably Reduced - Art. 1229
f. Nullity of Principal Obligation or Penal Clause - Art. 1230
G. Legal / Coventional / Penal - Art. 1158, 1159, 1161
V. Breach
A. Substantial or Casual
Song Fo v. Hawaiian Phils., 47 Phil. 821 (1928)
Velarde v. CA, 361 SCRA 56 (2001)
Angeles v. Calasanz, 135 SCRA 323 (1985)
Delta Motor Corp. v. Genuino, 170 SCRA 29 (1989)
Vermen Realty v. CA, 224 SCRA 549 (1993)
B. Modes
1. Dolo
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a. Dolo Incidente or Dolo Causante
Woodhouse v. Halili, 93 Phil. 526 (1953)
Geraldez v. CA, 230 SCRA 320 (1994)
b. Non-Waiver - Art. 1171
2. Negligence - Art. 1172
a. Culpa or Dolo, Culpa Aquilana or Culpa Contractual
Gutierrez v. Gutierrez, 56 Phil. 176 (1931)
Borja v. Vasquez, 74 Phil. 560 (1944)
b. Degree of Diligence - Art. 1173, Par. 2
De Guia v. Manila Electric Co., 40 Phil. 706 (1920)
US v. Barias, 23 Phil. 434 (1912)
Sarmiento v. Spouses Cabrido, 401 SCRA 122 (2003)
Crisostomo v. CA, 409 SCRA 528 (2003)
3. Mora - Art. 1169
a. Mora Solvendi
i. Necessity of Demand
Cetus Development Corp. v. CA, 176 SCRA 72 (1989)
Aerospace Chemical Industries v. CA, 315 SCRA 92 (1999)
Santos Ventura Hocorma Foundation v. Santos, 441 SCRA 472 (2004)
Vazquez v. Ayala Corporation, 443 SCRA 231 (2004)
ii. Exceptions
Abella v. Francisco, 55 Phil. 447 (1930)
De La Cruz v. Apolonio Legaspi & Concordia Samperoy, 98 Phil. 43 (1955)
b. Mora Accipiendi
Vda. De Villaruel v. Manila Motor Co., Inc., 104 Phil. 926 (1958)
c. Compensatio Morae
Central Bank v. CA, 139 SCRA 46 (1985)
4. Contravention of Tenor
Chavez v. Gonzales, 32 SCRA 547 (1970)
Telefast v. Castro, 158 SCRA 445 (1988)
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Arrieta v. NARIC, 10 SCRA 79 (1964)
Magat v. Medialdea, 206 Phil. 341 (1983)
VI. Remedies
A. Primary
1. Performance
a. Specific Performance for Specific Thing in To Give - Art. 1165, Par. 1, Sec. 10, Rule 39 of the Rules of Court
b. Substituted Performance for Generic Thing in To Give - Art. 1165, Par. 2
c. Substituted Performance or Undoing of Poor Work in To Do - Art. 1167
Chavez v. Gonzales, supra
Tanguilig v. CA, 266 SCRA 78 (1997)
d. Undoing in Not To Do - Art. 1168
2. Rescision - Art. 1191, 1192, 1786, 1788, 1484-1486, R.A. 6552
Song Fo v. Hawaiian-Philippines, supra
Boysaw v. Interphil Promotions, 148 SCRA 635 (1987)
U.P. v. De Los Angeles, 35 SCRA 102 (1970)
De Erquiaga v. CA, 178 SCRA 1 (1989)
Angeles v. Calasanz, supra
Ong v. CA, 310 SCRA 1 (1999)
Iringan v. CA, 366 SCRA 41 (2001)
Visayan Saw Mill v. CA, 219 SCRA 378 (1993)
Deiparine v. CA, 221 SCRA 503 (1993)
Grace Park Engineering Co., Inc. v. Dimaporo, 107 SCRA 266 (1981)
Roque v. Lapuz, 96 SCRA 741 (1980)
Suria v. IAC, 151 SCRA 661 (1987)
3. Damages - Art. 1170
B. Subsidiary
1. Accion Subrogatoria - Art. 1177
- Exceptions - Art. 772
2. Accion Pauliana - Art. 1177, 1381, Par. 3
Khe Hong Cheng v. CA, 355 SCRA 701 (2001)
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Siguan v. Lim, 318 SCRA 725 (1999)
3. Other Specific Remedies - Art. 1652, 1729, 1608, 1893
VII. Fortuitous Event
A. Concurrence of Fault
Juan Nakpil & Sons v. CA, 144 SCRA 596 (1986)
Republic v. Luzon Stevedoring Co., 21 SCRA 279 (1967)
Dioquino v. Laureano, 33 SCRA 65 (1970)
Austria v. CA, 39 SCRA 527 (1971)
NPC v. CA, 161 SCRA 334 (1988)
Yobido v. CA, 281 SCRA 1 (1997)
Bacolod-Marcia Milling v. CA, 182 SCRA 24 (1990)
Philcomsat v. Globe Telecom, 429 SCRA 153 (2004)
B. Exceptions - Art. 1174, 1165, Par. 3, 1942, 1979, 2001, 2147
VIII. Usurious Transactions
A. P.D. 858
B. Central Bank Circular 416
C. Monetary Board Circular 905 - Art. 2209
Eastern Shipping Lines v. CA, 234 SCRA 781 (1994)
Crismina Garments v. CA, 304 SCRA 356 (1999)
Keng Hua Products v. CA, 286 SCRA 257 (1998)
Security Bank v. RTC Makati, 263 SCRA 483 (1996)
Almeda v. CA, 256 SCRA 292 (1996)
Angel Warehousing v. Cheldea, 23 SCRA 119 (1968)
First Metro Investment v. Este. Del Sol, 369 SCRA 99 (2001)
IX. Transmissibility of Rights - Art. 1178
X. Modes of Extinguishment - Art. 1231
A.Payment or Performance - Art. 1232
1. Requisites
a. Payor
i. Third Person / Interested Party – Art. 1302 (3)
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ii. Third Person / Not an Interested Party / With Consent of the Debtor – Art. 1302 (2), 1236, Par. 1
iii. Third Person / Not an Interested Party / Without Knowledge or Against the Will of the Debtor – Art. 1236,
Par. 1, 2, 1237
iv. Third Person / Does Not Intend to be Reimbursed – Art. 1238
v. Obligations to Give – Art. 1239, 1427
vi. Active Solidarity – Art. 1214
b. Payee – Art. 1240
i. Incapacitated Person – Art. 1241, Par. 1
ii. Third Person – Art. 1241, Par. 2
iii. Proof of Benefit Not Required – Art. 1241, Paragaraph 2, 1242
iv. Active Solidarity – Art. 1214
c. Identity
i. Specific Thing – Art. 1244
ii. Generic Thing – Art. 1246
iii. Pay Money – Art. 1249, 1250; R.A. 529, 4100
Arrieta v. NARIC, supra
Kalalo v. Luz, 34 SCRA 377 (1970)
St. Paul Fire and Marine Insurance v. Macondray, 70 SCRA 122 (1976)
Papa v. A.V. Valencia, 284 SCRA 643 (1998)
PAL v. CA, 181 SCRA 557 (1990)
d. Integrity - Art. 1233
i. Partial Payment – Art. 1248
ii. Exceptions – Art. 1248
iii. Substantial Performance in Good Faith – Art. 1234
iv. Estoppel – Art. 1235
v. Interests and Installments – Art. 1176
e. When Payment Made – Art. 1169
f. Where Payment Made – Art. 1251, Par. 1 – 4
g. Expenses – Art. 1247
2. Application of Payments – Art. 1252 – 1254
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Reparations Commission v. Universal Deep Sea Fishing, 83 SCRA 764 (1978)
Paculdo v. Regalado, 345 SCRA 134 (2000)
3. Payment by Cession – Art. 1255
4. Dacion en Pago – Art. 1245
Development Bank of the Philippines v. CA, 284 SCRA (1998)
Filinvest Credit Corporation v. Philippine Acetylene, 111 SCRA 421 (1982)
5. Tender of Payment and Consignation
a. Tender / Refusal Not Required – Art. 1256, Par. 2
b. Twin Notice Requirement – Art. 1257, Par. 1, 1258, Par. 2
c. Effects – Art. 1260, Par. 1
d. Withdrawal by Debtor / Before Acceptance by Creditor / Before Approval by Court – Art. 1260, Par. 2
e. Withdrawal by Debtor / After Consignation – Art. 1261
f. Expenses – Art. 1259
De Guzman v. CA, 137 SCRA 730 (1985)
TLG International Continental Enterprising, Inc. v. Flores, 47 SCRA 437 (1972)
McLaughlin v. CA, 144 SCRA 693 (1986)
Soco v. Militante, 123 SCRA 160 (1983)
Sotto v. Mijares, 28 SCRA 17 (1969)
Reisenbeck v. CA, 209 SCRA 656 (1992)
Rural Bank of Caloocan v. CA, 104 SCRA 151 (1981)
Licuanan v. Diaz, 175 SCRA 530 (1989)
Chan v. CA, 230 SCRA 685 (1994)
Meat Packing Corp v. Sandiganbayan, 359 SCRA 409 (2001)
B. Loss or Impossibility
1. Loss – Art. 1189 (2)
a. Requisites – Art. 1262
b. Presumption – Art. 1265, 1165
c. Effect
i. Specific Thing – Art. 1262, 1268
ii. Generic Thing – Art. 1263
10
iii. Partial Loss – Art. 1264
iv. Third Persons – Art. 1269
2. Impossibility – Art. 1266, 1267
a. Requisites – Art. 1266
b. Effect
i. To do – Art. 1266, 1267, 1262, Par. 2
Occeña v. CA, 73 SCRA 637 (1976)
Naga Telephone Co. v. CA, supra
PNCC v. CA, 272 SCRA 183 (1997)
ii. Partial Impossibility – Art. 1264
C. Condonation or Remission – Art. 1270, Par. 1
1. Requisites – Art. 1270, Par. 2
YAM v. CA, 303 SCRA 1 (1999)
2. Presumptions – Art. 1271, 1272, 1274
3. Rules – Art. 1270
4. Principal or Accessory – Art. 1273
D. Confusion or Merger of Rights – Art. 1275
1. Joint or Solidary – Art. 1277
2. Principal or Accessory – Art. 1276
E. Compensation – Art. 1278
1. Origin – Art. 1279, 1282, 1283
2. Legal
a. Requisites - Art. 1279, 1280
Gan Tion v. CA, 28 SCRA 235 (1969)
BPI v. Reyes, 255 SCRA 571 (1996)
PNB v. Sapphire Shipping, 259 SCRA 174 (1996)
CKH Industrial Development v. CA, 272 SCRA 333 (1997)
Mirasol v. CA, 351 SCRA 44 (2001)
Associated Bank v. Tan, 446 SCRA 282 (2004)
Villanueva v. Tantuico, Jr., 182 SCRA 263 (1990)
11
Perez v. CA, 127 SCRA 636 (1984)
Silahis Marketing Corp v. IAC, 180 SCRA 21 (1989)
3. Effect – Art. 1290, 1289
4. Not Allowed – Art. 1287, 1288
5. Debts Payable in Different Places – Art. 1286
6. Effect of Nullity of Debts – Art. 1284
7. Effect of Assignment of Credit
a. With Consent of Debtor – Art. 1285, Par. 1
b. With Knowledge / Without Consent of Debtor – Art. 1285, Par. 2
c. Without Knowledge of Debtor – Art. 1285, Par. 3
F. Novation – Art. 1291
1. Requisites – Art. 1292
Millar v. CA, 38 SCRA 642 (1971)
Dormitorio v. Fernandez, 72 SCRA 388 (1976)
Magdalena Estate v. Rodriguez, 18 SCRA 967 (1966)
Reyes v. Secretary of Justice, 264 SCRA 35 (1996)
Conchingyan v. RB Surety and Insurance, 151 SCRA 339 (1987)
Broadway Centrum Condominium Corp v. Tropical Hut, 224 SCRA 302 (1993)
Molino v. Security Diners International, 363 SCRA 358 (2001)
Garcia v. Llamas, 417 SCRA 292 (2003)
California Bus Line v. State Investment, 418 SCRA 297 (2003)
Babst v. CA, 350 SCRA 341 (2001)
2. Effect – Art. 1296
3. Original or New Obligation – Art. 1297 – 1299
4. Objective or Subjective
a. Change of Debtor
i. Expromision – Art. 1293, 1294
ii. Delegacion – Art. 1293, 1295
Garcia v. Llamas, supra
Quinto v. People, 305 SCRA 708 (1999)
12
b. Change of Creditor – Art. 1300
i. Conventional – Art. 1301, 1303, 1304
Licaros v. Gatmaitan, 362 SCRA 548 (2001)
ii. Legal – Art. 1302, 1303, 1304
Astro Electronics Corp. v. Philippine Export and Foreign Loan Guarantee Corporation,
411 SCRA 462 (2003)
CONTRACTS
I. Definition – Art. 1305
A. Characteristics
1. Obligatory Force – Art. 1308
2. Mutuality – Art. 1308 – 1310, 1473
GSIS v. CA, 228 SCRA 183 (1993)
Professional Academic Plans, Inc. v. Crisostomo, 453 SCRA 342 (2005)
3. Relativity – Art. 1311, 1317
Manila Railroad Co. v. La Compañia Trasatlantica, 83 Phil. 875 (1918)
DKC Holdings Corp. v. CA, 329 SCRA 666 (2000)
Gutierrez Hermanos. v. Orense, 28 Phil. 571 (1914)
B. Parties – Art. 1306
Gabriel v. Monte de Piedad, 71 Phil. 497 (1941)
Pakistan International Airlines v. Ople, 190 SCRA 90 (1990)
Special Disqualifications – Art. 1490, 1491, Art. 87 of the Family Code
C. Stipulations – Art. 1306
1. Pactum Commissorium – Art. 2088
2. Pactum Leonina – Art. 1799
13
3. Pactum de Non Alienado
Cui v. Arellano, 2 SCRA 205 (1961)
Arroyo v. Berwin, 36 Phil. 386 (1917)
Filipinas Compañia de Seguros v. Mandanas, 17 SCRA 391 (1966)
Bustamante v. Rosel, 319 SCRA 413 (1999)
D. Classification – Art. 1307, 1315, 1316
Dizon v. Gaborro, 83 SCRA 688 (1978)
Corpuz v. CA, 93 SCRA 424 (1988)
E. Third Persons
1. Stipulations Pour Autrui – Art. 1311, Par. 2
Florentino v. Encarnacion, 79 SCRA 192 (1977)
Coquia v. Fieldmen’s Insurance Co., 26 SCRA 178 (1968)
Constantino v. Espiritu, 39 SCRA 206 (1971)
Young v. CA, 169 SCRA 213 (1989)
Marmont Resort v. Guiang, 168 SCRA 373 (1988)
Mandarin Villa v. CA, 257 SCRA 538 (1996)
2. Possession of Object – Art. 1312
3. Creditors of the Contracting Parties – Art. 1313
4. Interference – Art. 1314
Daywalt v. Corp., 39 Phil. 587 (1919)
So Ping Bun v. CA, 314 SCRA 751 (1999)
Lagon v. CA, 453 SCRA 616 (2005)
II. Essential Elements
A. Consent
1. Requisites - Art. 1319
Rosenstock v. Burke, 46 Phil. 217 (1924)
Malbarosa v. CA, 402 SCRA 168 (2003)
San Lorenzo Development Corporation vs. CA, 449 SCRA 99 (2005)
MMDA vs. Jancom, 375 SCRA 320 (2002)
a. Offer - Art. 1319, 1321 - 1323, 1325, 1326
14
b. Acceptance - Art. 1319, 1320
i. Period - Art. 1324
Sanchez v. Rigos, 45 SCRA 368 (1972)
ii. Option Contract - Art. 1324
c. Legal Capacity of Parties - Art. 1327
d. Intelligent, Free, Spontaneous, Real - Art. 1330 - 1346
i. Mistake of Fact
Asiain v. Jalandoni, 45 Phil. 296 (1923)
Heirs of William Sevilla v. Sevilla, 402 SCRA 501 (2003)
Andres v. Manufacturers Hanover and Trust, 177 SCRA 618 (1989)
Spouses Theis v. CA, 268 SCRA 167 (1997)
ii. Error of Law - Art. 3, 1334
iii. Unable to Read - Art. 1332
Dumasug v. Modelo, 34 Phil. 252 (1916)
Hemedes v. CA, 316 SCRA 347 (1999)
Lustan v. CA, 266 SCRA 663 (1997)
Katipunan v. Katipunan, 375 SCRA 199 (2002)
Leonardo v. CA, 438 SCRA 201 (2004)
iv. Inexcusable Mistake - Art. 1333
v. Violence and Intimidation - Art. 1335, 1336
Martinez v. Hongkong and Shanghai Bank, 15 Phil. 252 (1910)
Lee v. CA, 201 SCRA 405 (1991)
vi. Undue Influence - Art. 1337
vii. Dolo - Art. 1338
Hill v. Veloso, 31 Phil. 160 (1915)
Woodhouse v. Halili, supra
Geraldez v. CA, 230 SCRA 320 (1994)
Sierra v. CA, 211 SCRA 785 (1992)
- Dolo Causante - Art. 1338
- Dolo Incidente - Art. 1344, Par. 2
15
- Failure to Disclose - Art. 1339
Tuason v. Marquez, 45 Phil. 381 (1923)
Rural Bank of Sta. Maria v. CA, 314 SCRA 255 (1999)
- Exaggerations in Trade - Art. 1340
Azarraga v. Gay, 52 Phil. 599 (1928)
Trinidad v. IAC, 204 SCRA 524 (1991)
- Expression of Opinion - Art. 1341, 1344
Songco v. Sellner, 37 Phil. 254 (1917)
viii. Misrepresentation
- Third Person - Art. 1342
- Good Faith - Art. 1343
- Active / Passive
Mercado v. Espiritu, 37 Phil. 215 (1917)
Braganza v. Villa Abrille, 105 Phil. 456 (1959)
ix. Simulation of Contracts - Art. 1346
Garanciang v. Garanciang, 28 SCRA 229 (1969)
Suntay v. CA, 251 SCRA 430 (1995)
Pangadil v. CFI, 116 SCRA 347 (1982)
Umali v. CA, 189 SCRA 529 (1990)
- Absolute / Relative - Art. 1345
Macapagal v. Remorin, Caluza, 458 SCRA 652 (2005)
B. Object - Art. 1347, 1349
1. Future Inheritance - Art. 1347
Blas v. Santos, 1 SCRA 899 (1961)
J.L.T. Agro, Inc. v. Balansag, 453 SCRA 211 (2005)
2. Impossible Things or Services - Art. 1348
C. Cause - Art. 1350, 1351
1. Presumption - Art. 1354
2. Absence / Unlawful Cause - Art. 1352
Liguez v. CA, 102 Phil. 577 (1957)
16
3. Statement of False Cause - Art. 1353
4. Lesion or Inadequacy of Cause - Art. 1355
Carantes v. CA, 76 SCRA 514 (1977)
Spouses Buenaventura v. CA, 416 SCRA 263 (2003)
III. Form – Art. 1356
A. Required for Validity - Art. 748, 749, 1874, 2134, 1771, 1773
Hernaez v. De los Angeles, 27 SCRA 1276 (1969)
B. Required for Effectivity to Third Persons – Art. 1357, 1358
C. Required for Proving Existence – Art. 1403
Resuena v. CA, 454 SCRA 42 (2005)
IV. Reformation of Instruments
A. Requisites – Art. 1359
Garcia v. Bisaya, 97 Phil. 609 (1955)
Bentir v. Leande, 330 SCRA 591 (2000)
Quiros v. Arjona, 425 SCRA 57 (2004)
B. Reformation Not Allowed – Art. 1366
C. Implied Ratification – Art. 1367
D. Interested Party – Art. 1368
E. Procedure – Art. 1369
Atilano v. Atilano, 28 SCRA 231 (1969)
Carantes v. CA, supra
Sarming v. Dy, 383 SCRA 131 (2002)
V. Interpretation
A. Intent – Art. 1370 – 1372
Borromeo v. CA, 47 SCRA 65 (1972)
Kasilag v. Rodriguez, 69 Phil. 217 (1939)
Santi v. CA, 227 SCRA 541 (1993)
Rapanut v. CA, 246 SCRA 323 (1995)
B. Several Meanings – Art. 1373
Oil And Natural Gas Commission v. CA, 293 SCRA 26 (1998)
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C. Doubtful Stipulations – Art. 1374
Spouses Rigor v. Consolidated Orix Leasing and Finance Corporation, 387 SCRA 437 (2002)
D. Different Significations – Art. 1375
E. Ambiguities and Omissions – Art. 1376
Chua v. CA, 401 SCRA 54 (2003)
F. Party Causing Obscurity – Art. 1377
RCBC v. CA, 305 SCRA 449 (1999)
G. Impossibility of Settling Doubts – Art. 1378
Gacos v. CA, 212 SCRA 8 (1992)
H. Doubts on Principal Object – Art. 1378
VI. Defective Contracts
A. Rescissible - Art. 1380, 1381, 1382, 1191
Universal Food Corp. v. CA, 33 SCRA 1 (1970)
Pryce Corporation v. PAGCOR, 458 SCRA 164 (2005)
Spouses Cannu v. Spouses Galang, 459 SCRA 80 (2005)
Iringan v. CA, 366 SCRA 41 (2001)
Rivera v. Del Rosario, 419 SCRA 626 (2004)
Equatorial Realty Development v. Mayfair Theatre, 370 SCRA 56 (2001)
1. Requisites - Art. 1383, 1385, 1389
The Union Insurance Society of Canton v. CA, 260 SCRA 431 (1996)
Rivera v. Del Rosario, supra
2. Effect - Art 1385
3. Extent - Art. 1384
Siguan v. Lim, supra
4. Presumption of Fraud
Oria v. Mcmicking, 21 Phil. 243 (1912)
Siguan v. Lim, supra
Suntay v. CA, supra
China Banking Corporation v. CA, 327 SCRA 378 (2000)
MR Holdings Ltd v. Carlos, 380 SCRA 617 (2002)
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5. Liability for In Fraud of Creditors - Art. 1388
B. Voidable or Annullable - Art. 1390
1. Annulment
Felipe v. Heirs of Aldon, 120 SCRA 628 (1983)
a. Interested Party - Art. 1397
Singsong v. Isabela Sawmill, 88 SCRA 623 (1979)
Samahan ng Magsasaka sa San Josep v. Valisno, 430 SCRA 629 (2004)
Malabanan v. Gaw Ching, 181 SCRA 84 (1990)
Armentia v. Patriarca, 18 SCRA 1253 (1966)
b. Prescription - Art. 1391
Carantes v. CA, 76 SCRA 514 (1977)
c. Effect
i. Mutual Restitution - Art. 1398, 1402
Cadwallader & Co. v. Smith, Bell & Co., 7 Phil. 461 (1907)
Velarde v. CA, supra
Ines v. CA, G.R. No. 114051, 247 SCRA 312 (1995)
Arra Realty Corporation v. Guarantee Development Corporation, 438 SCRA 441 (2004)
ii. Incapacitated Party - Art. 1399
Katipunan v. Katipunan, 375 SCRA 199 (2002)
iii.Lost Through Fault - Art. 1400
d. Extinguishment - Art. 1392, 1401
2. Ratification
a. Form - Art. 1393, 1394
b. Effect
i. Extinguished - Art. 1392
Uy Soo Lim v. Tan Unchuan, 38 Phil. 552 (1918)
ii. Retroactivity - Art. 1396
C. Unenforceable - Art. 1403
1. Unauthorized Contracts - Art. 1404
2. Statute of Frauds
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Asia Production Co., Inc. v. Paño, 205 SCRA 458 (1992)
Western Mindanao Co. v. Medalle, 79 SCRA 703 (1977)
Limketkai Sons v. CA, 250 SCRA 523 (1995)
Babao v. Perez, 102 Phil. 756 (1957)
Reiss v. Memije, 15 Phil. 350 (1910)
Villanueva v. CA, 267 SCRA 89 (1997)
a. Purpose
Philippine National Bank v. Philippine Vegetable Oil Co., 49 Phil. 857 (1927)
b. Ratification - Art. 1405
Carbonnel v. Poncio, 103 Phil. 655 (1958)
First Philippine International Bank v. CA, 252 SCRA 259 (1996)
c. Public Document for Registration - Art. 1406
3. Both Parties Incapacitated to Consent - Art. 1407
D. Void or Inexistent - Art. 1409
Tongoy v. CA, 123 SCRA 99 (1983)
Cui v. Arellano University, supra
Chavez v. PCGG, 307 SCRA 394 (1999)
Guiang v. CA, 291 SCRA 372 (1998)
Castillo v. Galvan, 85 SCRA 526 (1978)
1. Void
a. Criminal offense - Art. 1411
b. Unlawful Act - Art. 1412
Menchacez v. Teves, 449 SCRA 380 (2005)
Angel v. Modales, 420 SCRA 645 (2004)
c. Illegal Purpose - Art. 1414
d. Illegal Contract - Art. 1415
Liguez v. CA, supra
Relloza v. Gaw Cheen Hum, 93 Phil. 827 (1953)
e. Prohibited Agreement - Art. 1416
Philippine Banking Corp. v. Lui She, 21 SCRA 52 (1967)
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Frenzel v. Catito, 406 SCRA 55 (2003)
Acabal and Nicolas v. Acabal, 454 SCRA 555 (2005)
f. Amout Paid Exceeds Maximum Fixed by Law - Art. 1417
g. Laborer Exceeds Hours Fixed by Law - Art. 1418
h. Laborer Accepts Lower Wage Under the Law - Art. 1419
2. Inexistent - Art. 1345, 1346
3. Non-waiver of Defense - Art. 1409
4. Non-prescription of Action - Art. 1410
5. Interested Party - Art. 1421
VII. Natural Obligations – Art. 1423-1430
Villaroel v. Estrada, 71 Phil. 140 (1940)
Fisher v. Robb, 69 Phil. 101 (1939)
VIII. Estoppel – Art. 1431
Kalalo v. Luz, supra
A. Technical Estoppel – Art. 1433
B. Estoppel in pais – Art. 1433
C. Persons Bound – Art. 1439
Manila Lodge No. 761 Benevolent and Protective Order of the Elks v. CA, 73 SCRA 162 (1976)
D. Applicable Cases – Art. 1434 – 1438
Miguel v. Catalino, 26 SCRA 234 (1968)
Mendoza v. Reyes, 124 SCRA 154 (1983)
IV. Trusts – Art. 1442
A. Parties – Art. 1440
B. Kinds – Art. 1441
Salao v. Salao, 70 SCRA 65 (1976)
1. Express Trusts – Art. 1443 – 1445
2. Implied Trusts – Art. 1457, 1448 - 1456
Fabian v. Fabian, 22 SCRA 231 (1968)
Bueno v. Reyes, 27 SCRA 1179 (1969)
Tamayo v. Callejo, 46 SCRA 27 (1972)
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Heirs of Sanjorjo v. Quijano, 449 SCRA 15 (2005)
Aznar Brothers Realty Company v. Aying, 458 SCRA 496 (2005)
Prescribed Book: Tolentino
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