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
Tengco v. CA (G.R. No. 49852, 18 October 1989, 178 SCRA 608)
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%
Eastern Shipping Lines v. CA (G.R. No. 97421, 12 July 1994, 234 SCRA 781)
Crismina Garments v. CA (G.R. No. 128721, 9 March 1999, 304 SCRA 356)
Keng Hua Products v. CA (G.R. No. 116863, 12 February 1998)
Almeda v. CA (G.R. No. 113412, 17 April 1996, 256 SCRA 292)
First Metro Investment vs. Este. Del Sol (G.R. No. 141811, 15 November 2001, 369 SCRA 99)
Nacar v. Gallery Frames (G.R. No. 189871, 13 August 2013, 703 SCRA 439)
Accion Pauliana – Art. 1177, 1381 par. 3
V. Different Kinds of Obligations
A. Pure and Conditional Obligations – Art. 1179 par. 1., Art. 1182
c. Postestative 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
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