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    The document discusses obligations and contracts under Philippine civil law. It covers the definition of obligations, the different sources and kinds of obligations, compliance with obligations, and modes of extinguishing obligations. It also discusses the definition of contracts, the essential and fundamental characteristics of contracts including consensuality and autonomy of contracts. The document provides an in-depth overview of the legal principles and jurisprudence related to obligations and contracts in the Philippines in a detailed and structured manner.

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    Table of Contents

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    The document discusses obligations and contracts under Philippine civil law. It covers the definition of obligations, the different sources and kinds of obligations, compliance with obligations, and modes of extinguishing obligations. It also discusses the definition of contracts, the essential and fundamental characteristics of contracts including consensuality and autonomy of contracts. The document provides an in-depth overview of the legal principles and jurisprudence related to obligations and contracts in the Philippines in a detailed and structured manner.

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    The document discusses obligations and contracts under Philippine civil law. It covers the definition of obligations, the different sources and kinds of obligations, compliance with obligations, and modes of extinguishing obligations. It also discusses the definition of contracts, the essential and fundamental characteristics of contracts including consensuality and autonomy of contracts. The document provides an in-depth overview of the legal principles and jurisprudence related to obligations and contracts in the Philippines in a detailed and structured manner.

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    76 views9 pages

    Table of Contents

    Uploaded by

    AJ Arugay
    The document discusses obligations and contracts under Philippine civil law. It covers the definition of obligations, the different sources and kinds of obligations, compliance with obligations, and modes of extinguishing obligations. It also discusses the definition of contracts, the essential and fundamental characteristics of contracts including consensuality and autonomy of contracts. The document provides an in-depth overview of the legal principles and jurisprudence related to obligations and contracts in the Philippines in a detailed and structured manner.

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    of 9

    I. Obligations — Arts.

    1156-1304
    A. In General
    1. Definition — Art. 1156
    2. 2. Kinds of Obligations as to basis and enforceability — Art. 1423-1430, RA 6809
    3. Prescription of Actions — 1139-1155

    Ansay v NDC, 107 Phil 997


    DBP v Confesor, 161 SCRA 307 (1988)
    Heirs of Roldan v Heirs of Roldan and Heirs of Magtulis, GR No 202578, 27 Sept 2017

    4. Elements of Obligations

    B. Sources of Civil Obligations — Art. 1157

    Sagrada Orden v NACOCO, 91 Phil 503


    The Metrobank v Rosales and Yo Yuk To, GR No 183204, Jan. 13, 2014

    1. Law — Art. 1158


    2. Contracts — Arts. 1159, 1305
    3. Quasi-contracts — Arts. 1160, 2142-2175

    a. Negotiorum gestio
    b. Solutio indebiti
    c. Other Quasi-contracts

    4. Acts or omissions punished by law — Arts. 1167, 2177, Arts. 100 & 104 RPC
    5. Quasi-delicts — Arts. 1162, 2176

    Saludaga v FEU, GR No 179337, April 30, 2008


    People’s Car v Commando Security, 51 SCRA 40
    Cruz v Tuazon & Co, 76 SCRA 543
    Adille v CA, 157 SCRA 455
    Andres v Mantrust, 177 SCRA 618 (1989)
    Puyat & Sons v Manila, 7 SCRA 970
    CBK Power Co Ltd v CIR, GR Nos 198729-30, January 15, 2014
    Cangco v MRR, 38 Phil 768
    Gutierrez v Gutierrez, 56 Phil 177

    C. Compliance with Obligations — Arts. 19, 1163-166, 1244, 1246, 1460, 442, 440

    D. Kinds of Civil Obligations

    1. As to Perfection & Extinguishment

    a. Pure — Arts. 1179, 1197


    b. Condititonal — Arts. 1181-1190
    c. With a term or period — Arts. 1180, 1193-1198

    Pay v Palanca, 57 SCRA 618


    Smith Bell v Sotello Matti, 44 Phil 874
    Chavez v Gonzales, 32 SCRA 547
    Encarnacion v Baldomar, 77 Phil 470
    Eleizegui v Lawn Tennis Club, 2 Phil 309
    Philbanking v Lui She, 21 SCRA 53
    Lim v People, 133 SCRA 333
    Araneta, Inc v Phil Sugar Estates, 20 SCRA 330
    Millare v Hernando, 151 SCRA 484

    2. As to Plurality of Prestation

    a. Conjunctive
    b. Alternative — Arts. 1199-1205
    c. Facultative — Art. 1206

    Arco Pulp and Paper Co. Inc and Santos v Lim, GR No 206806, June 25, 2014

    3. As to rights & obligations of multiple parties — Arts. 1207-1222

    a. Joint
    b. Solidary — Arts. 927, 1824, 1911, 1915, 1945, 2157, 2194, 2146; Arts. 94, 121 FC; Art
    90 RPC
    c. Disjunctive

    Ronquillo v CA, 132 SCRA 274


    Malayan Insurance v CA, 165 SCRA 536
    PNB v Independent Planters, 122 SCRA 113
    Calang and Philtranco v People, GR No 190696, August 3, 2010
    Ruks Konsult and Construction v Adworld Sign and Advertising Corp and Transworld Media Ads, GR
    No 204866, January 21, 2015
    TMBI v Feb Mitsui and Manalstas, GR No 194121, July 11, 2016
    Sanico and Castro v Colipano, GR NO 209969, September 27, 2017

    4. As to performance of prestation — Arts. 1221-1225, 1209-1210

    a. Divisible
    b. Indivisible
    c. Joint indivisible
    d. Solidary indivisible

    Sps. Lam v KODAK PHILIPPINES, GR No 167615, January 11, 2016

    5. As to the presence of an accessory undertaking in case of breach

    a. With a Penal Clause — Arts. 1226-1230


    Distinguish from Liquidated Damages

    Bachrach v Espiritu, 52 Phil 346


    Robes-Francisco v CFI, 86 SCRA 59
    Pamintuan v CA, 94 SCRA 556
    Castillo v Security Bank, et al., GR No 196118, July 30, 2014
    Sps. Poon v PRIME SAVINGS BANK, GR No 183794, June 13, 2016

    E. Breach of Obligations — Art. 1170

    Honrado v GMA Network Films, Inc., GR No 204702, January 14, 2015

    1. Manner of breach
    a. Fraud — Arts. 1171, 1338, 1344
    b. Negligence — Arts. 1171-1173
    c. Delay — Arts. 1169, 1165, 1786, 1788, 1896, 1942
    d. Any other manner of contravention

    2. Excuses for non-performance


    a. Fortuitous Event — Arts. 1174, 552, 1165, 2147, 2159
    b. Act of creditor

    Cangco v MRR, 38 Phil 768


    Telefast v Castro, 158 SCRA 445
    Meralco v Ramoy, GR No 158911, March 4, 2008
    Mindanao Terminal v Phoenix Assurance, GR No 162467, May 8, 2009
    Jimenez v City of Manila, 150 SCRA 510
    Rivera v Spouses Chua, GR No 184458, January 14, 2015
    Solar Harvest, Inc v Davao Corrugated Carton Corp., GR NO 176868, July 26, 2010
    Agcaoili v GSIS, 165 SCRA 1
    Arrieta v Naric, 10 SCRA 79
    Sicam v Jorge, GR No 159617, August 8, 2007 NPC v CA, 161 SCRA 334
    Fil-Estate v Sps Ronquillo, GR No 185798, January 13, 2014
    TMBI v Feb Mitsui and Manalastas, GR No 194121, July 11, 2016

    F. Remedies for Breach of Obligations — Arts. 1165-1168, 1170, 1177-1178, 1191-1192, 2236, 302,
    1708; Arts. 153, 155 FC; Rule 39 Sec. 13

    1. Extra-judicial remedies
    a. Expressly granted by law — Arts. 1786, 1788, 1526
    b. Stipulated

    2. Judicial remedies
    a. Principal remedies — Arts. 1191, 1170
    b. Subsidiary remedies — Arts. 1380, 1177
    c. Ancillary remedies — Rules of Court

    Universal Food Corp v CA, 33 SCRA 1


    Magdalena Estate v Myrick, 71 Phil 344
    UP v de los Angeles, 35 SCRA 102
    Zulueta v Mariano, 111 SCRA 206
    Palay, Inc v Clave, 124 SCRA 638
    Angeles v Calasanz, 135 SCRA 323
    Boysaw v Interphil Promotions, 148 SCRA 635
    Pilipinas Banc v IAC, 151 SCRA 546
    Unlad Resources Development v Dragon, GR No 149338, July 28, 2008
    Swire Realty Dev’t Corp v Jayne Yu, GR No 207133, March 9, 2015
    Olivarez Realty v Castillo, GR No 196251, July 9, 2014
    NCLPI v Lica and PROTON, GR No 176986, January 13, 2016

    G. Modes of Extinguishment of Obligations — Art. 1231


    Other modes:

    Saura v DBP, 44 SCRA 445

    1. Payment or performance — Arts. 1232- 1244, 1246- 1251, 1302; RA 529, RA 8183; PD 72,
    Secs 31-32

    NPC v Ibrahim, et al, GR NO 175863, February 18, 2015


    Land Bank of the Philipines v Alfredo Ong, GR No 190755, November 24, 2010
    JM Tuason v Javier, 31 SCRA 829
    Legarda v Saldaña, 55 SCRA 324
    Azcona v Jamandre, 151 SCRA 317
    Arañas v Tutaan, 127 SCRA 828
    Kalalo v Luz, 34 SCRA 337
    Ponce v CA, 90 SCRA 533
    New Pacific Timber v Señeris, 101 SCRA 686
    Roman Catholic Bishop of Malolos, Inc v IAC, 191 SCRA 411, November 16, 1990
    Tibajia, Jr v CA, 223 SCRA 163, January 4, 1993
    Bognot v RRI Lending Corp, GR No 180144, September 24, 2014
    Velasco v Meralco, 42 SCRA 556
    Commissioner v Burgos, 96 SCRA 831
    Filipino Pipe & Foundry Corp v NAWASA, 161 SCRA 32
    Del Rosario v Shell, 164 SCRA 556

    2. Loss of the thing due or Impossibility of Performance — Arts. 1262-1269, 1189, 1174, 1165,
    1268, 1942, 1979, 2147, 2159

    People v Franklin, 39 SCRA 363


    Laguna v Manabat, 58 SCRA 650
    Occeña v Jabson, 73 SCRA 637

    3. Condonation or remission of the debt — Arts. 1270-1274, 748, 749

    4. Confusion or Merger of Rights — Arts. 1275-1277, 1215, 1217

    5. Compensation — Arts. 1278-1290, 1243, 1215

    Kinds of Compensation
    a. Legal
    b. Conventional
    c. Facultative
    d. Judicial
    Gan Tion v CA, 28 SCRA 235
    PNB v Ong Acero, 148 SCRA 166
    Francia v IAC, 162 SCRA 753
    Republic v de los Angeles, 98 SCRA 103
    Solinap v del Rosario, 123 SCRA 640
    Sycip v CA, 134 SCRA 317
    Cia Maritima v CA, 135 SCRA 593
    Int’l Corporate Bank v IAC, 163 SCRA 296
    Mindanao Portland Cement v CA, 120 SCRA 296
    Bank of the Philippines v CA, GR No 136202, January 25, 2007
    Union Bank v DBP, GR No 191555, January 20, 2014

    6. Novation — Arts. 1291-1304, 1215

    Kinds of Novation
    a. As to its nature
    i. Subjective or personal
    ii. Objective or real

    b. b. As to its form
    i. Express
    ii. Implied

    Fua v Yap, 74 Phil 287


    Japan Airlines v Simangan, GR No 170141, April 2008
    Anamer Salazar v JY Borther Marketing Corp, GR No 171998, October 20, 2010
    Metropolitan Bank v Rural Bank of Gerona, Inc, GR No 159097, July 5, 2010
    Arco Pulp and Paper Co, Inc and Santos v Lim, GR No 206806, June 25, 2014
    Millar v CA, 38 SCRA 642
    Sandico v Piguing, 42 SCRA 322
    NPC v Dayrit, 125 SCRA 849
    Integrated Construction v Relova, 146 SCRA 360
    Cochingyan v R&B Surety, 151 SCRA 339
    Balila v IAC, 155 SCRA 262
    People’s Bank v Syvel’s, 164 SCRA 247
    Rodriguez v Reyes, 37 SCRA 195
    Odiamar v Odiamar Valencia, GR NO 213582, June 28, 2017

    II. Contracts — Arts. 1305-1422

    A. In General

    1. Definition — Arts. 1305


    Auto-contract — Arts. 1491, 1646, 1890

    2. Elements of Contracts
    a. Essential
    b. Natural
    c. Accidental
    Batchelder v CB, 44 SCRA 45

    B. Fundamental Characteristics/Principles of Contracts

    1. Consensuality of Contracts — Arts. 1305, 1317

    Contract of Adhesion

    Republic v PLDT, 26 SCRA 620


    Corpus v CA, 98 SCRA 424
    Ejercito, et al v Oriental Assurance Corp, GR No 192099, July 8, 2015

    2. Autonomy of Contracts — Arts. 1306, 1799, 2088, 2130

    Daisy Tiu v Platinum Plans, GR NO 163512, February 28, 2017


    Cui v Arellano University, 2 SCRA 205
    Saura v Sindico, 107 Phil 336
    Leal v IAC, 155 SCRA 394

    3. Mutuality of Contracts — Arts. 1308-1310, 1182

    Acceleration Clause
    Escalation Clause

    Banco Filipino Savings v Navarro, 152 SCRA 346 (1987)


    Florendo v CA, 265 SCRA 678 (1996)

    4. Obligatory Force of Contracts — Arts. 1159, 1315-1316, 749

    New World v AMA CLC, GR No 187930, February 23, 2015

    5. Relativity of Contracts — Arts. 1311-1314, 1177-1178, 1381(3)


    Privity of Contracts

    Saludo, Jr v Security Bank Corp, GR No 184041, October 13, 2010


    Metropolitan Bank and Trust Company v Reynaldo and Adrandea, GR No 164538, August 9, 2010
    Prudential Bank v Abasolo, GR No 186738, September 27, 2010
    Asian Cathay Finance and Leasing Corporation v Sps Cesario Gravador GR No 186550, July 5, 2010
    Velasco v CA, 95 SCRA 616
    Kauffman v PNB, 42 Phil 182
    Bonifacio Bros v Mora, 20 SCRA 261
    Bank of America v IAC, 145 SCRA 419
    Marimperio v CA, 156 SCRA 368
    Daywalt v Corp de PP Agustinos, 39 Phil 587
    Gilchrist v Cuddy, 29 Phil 542 (1915)
    Estate of KH Hemady v Luzon Surety, 100 Phil 389 (1956)
    So Ping Bun v CA, 314 SCRA 751 (1999)
    Sanico and Castro v Colipano, GR No 209969, September 27, 2017
    C. Classification of Contracts

    1. According to degree of dependence


    a. Preparatory — Arts. 1479, 1767, 1868
    b. Principal — Arts. 1458, 1638, 1642, 1933, 1962
    c. Accessory — Arts. 2047, 2085

    2. According to perfection
    a. Consensual — Arts. 1315, 1475
    b. Real — Arts. 1316, 1934
    c. Formal — Arts. 1356

    3. According to solemnity or form — Arts. 1356


    a. Any form
    b. Special form

    4. According to purpose
    a. Transfer of ownership — Arts. 725, 1458, 1638
    b. Conveyance of use — Arts. 562, 1642, 1933
    c. Rendition of service — Arts. 1642, 1868

    5. According to nature of obligation produced


    a. Bilateral — Arts. 1642, 1458
    b. Unilateral — Arts. 2047, 2093

    6. According to cause — Arts. 1350


    a. Onerous — Arts. 1458, 1638, 1642
    b. Gratuitous or lucrative — Arts. 725, 1933
    c. Remuneratory

    7. According to risk
    a. Commutative
    b. Aleatory — Arts. 2010

    8. According to name
    a. Nominate
    b. Innominate — Arts. 1307

    9. According to subject matter


    a. Thing
    b. Right
    c. Service

    D. Stages of Contracts

    1. Negotiation
    Contract of Option — Arts. 1324, 1479, 1482

    Sanchez v Rigos, 45 SCRA 368


    2. Perfection

    Tong Brothers Co. v IAC, 156 SCRA 726


    Velasco v CA, 51 SCRA 439

    3. Performance
    4. Consummation

    E. Essential Elements of Contracts — Arts. 1318


    1. Consent of the contracting parties — Arts. 1319-1346, 37-42, 739, 1476(4), 1490-1491,
    1533(5), 1646, 1782, 1409(7)
    Arts. 87, 124, 234 FC; RA 6809; Art XII, Secs 7 & 8, 1987 Constitution
    Cognition Theory
    Manifestation Theory

    2. Object certain which is the subject matter of the contract — Arts. 1347-1349, 1311, 1178
    3. Cause of the obligation — Arts. 1350-1355
    4. Delivery
    5. Due observance of prescribed formalities

    Clemente v CA, Jalandoon, GR 175483, October 14, 2015


    Pentacapital Investment Corp vs Mahinay, GR No 171736, July 5, 2010
    Ong Yiu v CA, 91 SCRA 223
    Weldon v CA, 154 SCRA 618
    C&C Commercial Corp v Menor, 120 SCRA 112
    Tang v CA, 90 SCRA 236
    Cariño v CA, 152 SCRA 529
    Lagunzad v Gonzales, 92 SCRA 476
    Law v Olympic Sawmill, 129 SCRA 439

    F. Form of Contracts — Arts. 1356-1358


    1. Any form — oral
    2. Special form

    a. Validity — Arts. 748, 749, 1744, 1773, 1874, 1956, 2134; Act 1147, Sec 22
    b. Enforceability — Arts. 1403, 1878
    c. Greater efficacy or convenience — Arts. 1358

    Lao Sok v Sabaysabay, 138 SCRA 134


    Gallardo v IAC, 155 SCRA 248
    Paredes v Espino, 22 SCRA 1000
    Sps Aguinaldo v Torres, GR No 225808, September 11, 2017

    G. Reformation of Contracts — Arts. 1359-1369

    H. Interpretation of Contracts — Arts. 1370-1379


    Lim v CA, 99 SCRA 668
    Republic v Castellvi, 58 SCRA 336
    Eastern Shipping v Margarina-Verkaufs-Union, 93 SCRA 256

    I. Kinds of Contracts as to Validity


    1. Valid and binding
    2. Valid but defective
    a. Rescissible Contracts – Arts. 1380-1389, 1191
    b. Voidable Contracts – Arts. 1390-1402, 1327-1328, 1330
    c. Unenforceable Contracts – Arts. 1403-1408, 1317, 1878
    3. Void or Inexistent — Arts. 1409-1422, 1318, 1353, 1378, 1491, 1898

    Recissible Contracts
    Cabaliw v Sadorra, 64 SCRA 310
    Hongkong & Shanghai Bank v Pauli, 161 SCRA 634

    Voidable Contracts
    Felipe v Heirs of Aldon, 120 SCRA 628
    House Int’l v IAC, 151 SCRA 703
    Poole-Blunden v Union Bank, GR No 205838, November 29, 2017

    Unenforceable Contracts
    Ortega v Leonardo, 103 Phil 870
    Carbonel v Poncio, 103 Phil 655
    Babao v Perez, 102 Phil 756
    Cabague v Auxilio, 92 Phil 294
    Yuviencio v Dacuycuy, 104 SCRA 668
    Clarin v Rulona, 127 SCRA 512
    Bisaya Land Transproration v Sanchez, 153 SCRA 532

    Void or Inexistent
    Clemente v CA, Jalandoon, GR No 175483, October 14, 2015
    Hernandez v CA, 160 SCRA 821
    Rubias v Batiller, 51 SCRA 120
    Javier v vda De Cruz, 80 SCRA 343
    Menil v CA, 84 SCRA 413
    Director of Lands v Alba, 88 SCRA 513
    Tongoy v CA, 123 SCRA 99
    Lita Enterprises v IAC, 129 SCRA 79
    Arsenal v IAC, 143 SCRA 40
    Manotok Realty v IAC, 149 SCRA 372
    Portugal v IAC, 159 SCRA 178
    Yanas v Acaylar, 136 SCRA 52
    Barsobia v Cuenco, 113 SCRA 547
    Godinez v Fong, 120 SCRA 223
    Yap v Grageda, 121 SCRA 244
    Pineda v de la Rama, 121 SCRA 671
    Liguez v CA, 102 Phil 577
    Avila v CA, 145 SCRA 541
    Teja Marketing v IAC, 148 SCRA 347
    Briones v Cammayo, 41 SCRA 404

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