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Obligations and Contracts2018-08-06T01:42:50+00:00

Obligations and Contracts

I. Sources of Obligations

A. Law – Art. 1158

B. Contracts – Art. 1159

C. Quasi-Contracts – Art. 1160

(correlate with Arts. 2142, 2144, 2154)

D. Quasi-Delicts- Art. 1162

(correlate with Arts. 2176, 2180 CC, Arts. 218, 219 FC, Rule 111, Rules of Criminal Procedure)

Art. 1167

II. Breach of Obligations

A. Delay (mora) – Art. 1169

Mora Solvendi
Mora Accipiendi
  • Tengco v. CA (G.R. No. 49852, 18 October 1989, 178 SCRA 608)

Compensatio Morae

B. Substantial v. casual/slight breach – Art. 1170

C. Fraud (dolo) – Art. 1171

D. Negligence – Arts. 1172, 1173

E. Contravention of the tenor

III. Fortuitous Event – Art. 1174

IV. Usurious Transactions – Art. 1175, 1413, 1961

Read: Act No. 2655; PD 858; PD 1685; Central Bank Circular No. 416; Central Bank
Circular No. 905 (1982) lifting the interest rate ceiling- (vs. 2209); Central Bank Circular
No. 796, Series of 2013 (1 July 2013) – legal interest at 6%

Accion Pauliana – Art. 1177, 1381 par. 3

V. Different Kinds of Obligations

A. Pure and Conditional Obligations – Art. 1179 par. 1., Art. 1182

a. Suspensive condition

b. Resolutory condition

c. Postestative condition

d. Mixed condition

e. Impossible condition – Art. 1183

f. Effect of prevention of the fulfillment of the condition by the obligor – Art. 1186

g. Rescission of Reciprocal Obligations – Art. 1191, 1192

Substantial v. casual breach
Obligation to return the object
Automatic rescission
Contract to sell
Rescission when obligation becomes impossible

B. Obligations with a Period – Art. 1193, 1180

Presumption – Art. 1196

When court may fix a period – Art. 1197

C. Alternative Obligation

D. Solidary Obligation

Art. 1211

Art. 1217 to 1220

Defenses available to a solidary debtor against the creditor – Art. 1222

E. Divisible and Indivisible Obligations

F. Obligation with a Penal Clause

Chapter 4 Extinguishment of Obligation

Art. 1249

Application of Payments

Payment by Cession / Dation in Payment

Tender of Payment and Consignation

Impossibility of Performance

Condonation or Remission

Compensation

Novation

Art. 1292 Objective Novation

Change of Debtor

Change of Creditor

Title II. CONTRACTS

Chapter 1. General Provisions

Autonomy

Nominate / Innominate Contracts

Mutuality

Relativity

Stipulation pour autrui

Interference by third persons

Chapter 2. Essential Requisites of Contracts

A. Period for Acceptance – Art. 1324 & Art. 1479

B. Mistake

C. When one of the parties is unable to read – Art. 1332

D. Inexcusable mistake – Art. 1333

E. Violence and intimidation – Art. 1335

F. Undue influence – Art. 1337

G. Fraud or dolo – Art. 1338

H. Usual exaggerations in trade; opportunity to know the facts – Art. 1340

I. Mere expression of an opinion – Art. 1341

J. Misrepresentation

K. Simulation of Contracts

L. Object of Contracts

Future inheritance

M. Cause of Contracts

Chapter 3. Form of Contracts

Chapter 4. Reformation of Instruments

Chapter 5. Interpretation of Contracts

DEFECTIVE CONTRACTS

Chapter 6. Rescissible Contracts

Art. 1380

Art. 1387 Badges of Fraud

Chapter 7. Voidable or Annullable Contracts

Chapter 8. Unenforceable Contracts

Chapter 9. Void or Inexistent Contracts

Title III. NATURAL OBLIGATIONS

Title IV. ESTOPPEL

Title V. TRUST