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 Thing

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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. 1180

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)

iii. Possibility – Art. 1183

Roman Catholic Archbishop of Manila v. CA, 198 SCRA 300 (1991)

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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

4. Facultative - Art. 1206

D. Joint or Solidary - Art. 1207 - 1222

1. Joint

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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

2. Indivisible

a. Kinds

i. Natural - Art. 1225, Par. 1

ii. Legal - Art. 1225, Par. 3

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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

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

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a. Culpa or Dolo, Culpa Aquilana or Culpa Contractual

Gutierrez v. Gutierrez, 56 Phil. 176 (1931)

Vasquez v. Borja, 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)

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

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b. Substituted Performance for Generic Thing in To Give - Art. 1162, 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)

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)

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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)

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

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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

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

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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

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

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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)

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

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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)

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)

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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 – Aart. 1799

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)

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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

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)

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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

- 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

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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)

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

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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)

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, 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)

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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)

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

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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

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)

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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)

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)

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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)

Heirs of Sanjorjo v. Quijano, 449 SCRA 15 (2005)

Aznar Brothers Realty Company v. Aying, 458 SCRA 496 (2005)

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