codal provisions in civ 2 course outline

8/11/2019 Codal Provisions in Civ 2 Course Outline

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Course Outline:

CIVIL LAW REVIEW 2

Title. I. - OBLIGATIONS

CHAPTER 1

GENERAL PROVISIONS

Obligations (in General)

1. Definition: Art. 1156. An obligation is a juridical necessity togive, to do or not to do. (n)

. ! inds of obligations as to basis and enforceability:

Art. 1"#. Obligations are civil or natural. $ivil obligations givea rig%t of action to co&'el t%eir 'erfor&ance. aturalobligations, not being based on 'ositive la but on e*uity andnatural la, do not grant a rig%t of action to enforce t%eir'erfor&ance, but after voluntary fulfill&ent by t%e obligor, t%eyaut%ori+e t%e retention of %at %as been delivered or renderedby reason t%ereof. o&e natural obligations are set fort% in t%efolloing articles.

Art. 1"". -%en a rig%t to sue u'on a civil obligation %asla'sed by etinctive 'rescri'tion, t%e obligor %o voluntarily'erfor&s t%e contract cannot recover %at %e %as delivered ort%e value of t%e service %e %as rendered.

Art. 1"5. -%en it%out t%e /noledge or against t%e ill oft%e debtor, a t%ird 'erson 'ays a debt %ic% t%e obligor is notlegally bound to 'ay because t%e action t%ereon %as'rescribed, but t%e debtor later voluntarily rei&burses t%e t%ird'erson, t%e obligor cannot recover %at %e %as 'aid.

Art. 1"6. -%en a &inor beteen eig%teen and tenty0oneyears of age %o %as entered into a contract it%out t%econsent of t%e 'arent or guardian, after t%e annul&ent of t%e

contract voluntarily returns t%e %ole t%ing or 'rice received,notit%standing t%e fact t%e %e %as not been benefited t%ereby,t%ere is no rig%t to de&and t%e t%ing or 'rice t%us returned.

Art. 1". -%en a &inor beteen eig%teen and tenty0oneyears of age, %o %as entered into a contract it%out t%econsent of t%e 'arent or guardian, voluntarily 'ays a su& of&oney or delivers a fungible t%ing in fulfill&ent of t%eobligation, t%ere s%all be no rig%t to recover t%e sa&e fro& t%eobligee %o %as s'ent or consu&ed it in good fait%. (1162A)

Art. 1"3. -%en, after an action to enforce a civil obligation%as failed t%e defendant voluntarily 'erfor&s t%e obligation, %ecannot de&and t%e return of %at %e %as delivered or t%e

'ay&ent of t%e value of t%e service %e %as rendered.

Art. 1"4. -%en a testate or intestate %eir voluntarily 'ays adebt of t%e decedent eceeding t%e value of t%e 'ro'erty %ic%%e received by ill or by t%e la of intestacy fro& t%e estate oft%e deceased, t%e 'ay&ent is valid and cannot be rescinded byt%e 'ayer.

Art. 1"#2. -%en a ill is declared void because it %as not beeneecuted in accordance it% t%e for&alities re*uired by la,but one of t%e intestate %eirs, after t%e settle&ent of t%e debtsof t%e deceased, 'ays a legacy in co&'liance it% a clause in

t%e defective ill, t%e 'ay&ent is effective and irrevocable.

1. le&ents of Obligation:a. Active subject one %o %as t%e rig%t and 'oe

to de&and t%e 'restation (oblige or creditor)b. 7assive subject one %o is bound to 'erfor&

t%e 'restation (obligor or debtor)c. Object or 'restationd. 8inculu& juris juridical tie9 t%e efficient cause

t%at binds t%e to subjects by reason of %ic%t%e debtor is bound in favor of t%e creditor to'erfor& t%e 'restation

ources of Obligation

Art. 115. Obligations arise fro&:

(1) a9

() $ontracts9

(#) ;uasi0contracts9

(") Acts or o&issions 'unis%ed by la9 and

(5) ;uasi0delicts.

1. a:

Art. 1153. Obligations derived fro& la are not 'resu&ed. Onlyt%ose e'ressly deter&ined in t%is $ode or in s'ecial las arede&andable, and s%all be regulated by t%e 'rece'ts of t%e la%ic% establis%es t%e&9 and as to %at %as not been foreseenby t%e 'rovisions of t%is


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any 'oer fro& t%e latter, is obliged to continue t%e sa&e untilt%e ter&ination of t%e affair and its incidents, or to re*uire t%e'erson concerned to substitute %i&, if t%e oner is in a 'ositionto do so. =%is juridical relation does not arise in eit%er of t%eseinstances:

(1) -%en t%e 'ro'erty or business is not neglected orabandoned9

() ?f in fact t%e &anager %as been tacitly aut%ori+edby t%e oner.

?n t%e first case, t%e 'rovisions of Articles 1#1, 1"2#, o. 1,and 1"2" regarding unaut%ori+ed contracts s%all govern.

?n t%e second case, t%e rules on agency in =itle > of t%is


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Art. 153. -%en t%e 'ro'erty delivered or &oney 'aid belongsto a t%ird 'erson, t%e 'ayee s%all co&'ly it% t%e 'rovisions ofarticle 143". (n)

Art. 154. -%oever in bad fait% acce'ts an undue 'ay&ent,s%all 'ay legal interest if a su& of &oney is involved, or s%allbe liable for fruits received or %ic% s%ould %ave been receivedif t%e t%ing 'roduces fruits.

@e s%all furt%er&ore be anserable for any loss or i&'air&ent

of t%e t%ing fro& any cause, and for da&ages to t%e 'erson%o delivered t%e t%ing, until it is recovered. (1346a)

Art. 162. @e %o in good fait% acce'ts an undue 'ay&ent of at%ing certain and deter&inate s%all only be res'onsible for t%ei&'air&ent or loss of t%e sa&e or its accessories andaccessions insofar as %e %as t%ereby been benefited. ?f %e %asalienated it, %e s%all return t%e 'rice or assign t%e action tocollect t%e su&. (134)

Art. 161. As regards t%e rei&burse&ent for i&'rove&ents ande'enses incurred by %i& %o unduly received t%e t%ing, t%e'rovisions of =itle 8 of


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discern&ent, s%all devolve u'on t%ose %aving suc% 'ersonunder t%eir legal aut%ority or control, unless it a''ears t%att%ere as no fault or negligence on t%eir 'art.

%ould t%ere be no 'erson %aving suc% insane, i&becile or&inor under %is aut%ority, legal guardians%i' or control, or ifsuc% 'erson be insolvent, said insane, i&becile, or &inor s%allres'ond it% t%eir on 'ro'erty, ece'ting 'ro'erty ee&'tfro& eecution, in accordance it% t%e civil la.

Second.?n cases falling it%in subdivision " of Article 11, t%e'ersons for %ose benefit t%e %ar& %as been 'revented s%allbe civilly liable in 'ro'ortion to t%e benefit %ic% t%ey &ay %avereceived.

=%e courts s%all deter&ine, in sound discretion, t%e'ro'ortionate a&ount for %ic% eac% one s%all be liable.

-%en t%e res'ective s%ares cannot be e*uitably deter&ined,even a''roi&ately, or %en t%e liability also attac%es to t%eGovern&ent, or to t%e &ajority of t%e in%abitants of t%e ton,and, in all events, %enever t%e da&ages %ave been causedit% t%e consent of t%e aut%orities or t%eir agents,inde&nification s%all be &ade in t%e &anner 'rescribed by

s'ecial las or regulations.

Third.?n cases falling it%in subdivisions 5 and 6 of Article 1,t%e 'ersons using violence or causing t%e fears s%all be'ri&arily liable and secondarily, or, if t%ere be no suc% 'ersons,t%ose doing t%e act s%all be liable, saving alays to t%e lattert%at 'art of t%eir 'ro'erty ee&'t fro& eecution.

Art. 12. Subsidiary civil liability of innkeepers tavernkeepersand proprietors of establishments. C ?n default of t%e 'ersonscri&inally liable, inn/ee'ers, tavern/ee'ers, and any ot%er'ersons or cor'orations s%all be civilly liable for cri&esco&&itted in t%eir establis%&ents, in all cases %ere aviolation of &unici'al ordinances or so&e general or s'ecial

'olice regulation s%all %ave been co&&itted by t%e& or t%eire&'loyees.

?nn/ee'ers are also subsidiarily liable for t%e restitution ofgoods ta/en by robbery or t%eft it%in t%eir %ouses fro& guestslodging t%erein, or for t%e 'ay&ent of t%e value t%ereof,'rovided t%at suc% guests s%all %ave notified in advance t%einn/ee'er %i&self, or t%e 'erson re'resenting %i&, of t%ede'osit of suc% goods it%in t%e inn9 and s%all furt%er&ore%ave folloed t%e directions %ic% suc% inn/ee'er or %isre'resentative &ay %ave given t%e& it% res'ect to t%e careand vigilance over suc% goods. o liability s%all attac% in caseof robbery it% violence against or inti&idation of 'ersonsunless co&&itted by t%e inn/ee'ers e&'loyees.c%an roblesvirtual la library

Art. 12#. Subsidiary civil liability of other persons. C =%esubsidiary liability establis%ed in t%e net 'receding article s%allalso a''ly to e&'loyers, teac%ers, 'ersons, and cor'orationsengaged in any /ind of industry for felonies co&&itted by t%eirservants, 'u'ils, or/&en, a''rentices, or e&'loyees in t%edisc%arge of t%eir duties.

Art. 12". !hat is included in civil liability.C =%e civil liabilityestablis%ed in Articles 122, 121, 12, and 12# of t%is $odeincludes:

1. Bestitution9

. Be'aration of t%e da&age caused9

#. ?nde&nification for conse*uential da&ages.

5. ;uasi0delicts

Art. 116. Obligations derived fro& *uasi0delicts s%all be

governed by t%e 'rovisions of $%a'ter , =itle >8?? of t%is


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deliver a t%ing of inferior *uality. =%e 'ur'ose of t%e obligationand ot%er circu&stances s%all be ta/en into consideration.

Art. 1"62. A t%ing is deter&inate %en it is 'articularlydesignated or '%ysical segregated fro& all ot%er of t%e sa&eclass.

=%e re*uisite t%at a t%ing be deter&inate is satisfied if at t%eti&e t%e contract is entered into, t%e t%ing is ca'able of being&ade deter&inate it%out t%e necessity of a ne or furt%er

agree&ent beteen t%e 'arties. (n)

Art. "". atural fruits are t%e s'ontaneous 'roducts of t%esoil, and t%e young and ot%er 'roducts of ani&als.

?ndustrial fruits are t%ose 'roduced by lands of any /indt%roug% cultivation or labor.

$ivil fruits are t%e rents of buildings, t%e 'rice of leases oflands and ot%er 'ro'erty and t%e a&ount of 'er'etual or lifeannuities or ot%er si&ilar inco&e. (#55a)

Art. ""2. =%e oners%i' of 'ro'erty gives t%e rig%t by

accession to everyt%ing %ic% is 'roduced t%ereby, or %ic% isincor'orated or attac%ed t%ereto, eit%er naturally orartificially. (#5#)

!inds of Obligations

1. As to 7erfection and tinguis%&ent

a. 7ure obligation

Art. 114. very obligation %ose 'erfor&ance does notde'end u'on a future or uncertain event, or u'on a 'ast eventun/non to t%e 'arties, is de&andable at once.

very obligation %ic% contains a resolutory condition s%allalso be de&andable, it%out 'rejudice to t%e effects of t%e%a''ening of t%e event. (111#)

Art. 114. ?f t%e obligation does not fi a 'eriod, but fro& itsnature and t%e circu&stances it can be inferred t%at a 'eriodas intended, t%e courts &ay fi t%e duration t%ereof.

=%e courts s%all also fi t%e duration of t%e 'eriod %en itde'ends u'on t%e ill of t%e debtor.

?n every case, t%e courts s%all deter&ine suc% 'eriod as &ayunder t%e circu&stances %ave been 'robably conte&'lated by

t%e 'arties. Once fied by t%e courts, t%e 'eriod cannot bec%anged by t%e&. (113a)

b. $onditional

Art. 1131. ?n conditional obligations, t%e ac*uisition of rig%ts, asell as t%e etinguis%&ent or loss of t%ose already ac*uired,s%all de'end u'on t%e %a''ening of t%e event %ic%constitutes t%e condition. (111")

Art. 113. -%en t%e fulfill&ent of t%e condition de'ends u'ont%e sole ill of t%e debtor, t%e conditional obligation s%all bevoid. ?f it de'ends u'on c%ance or u'on t%e ill of a t%ird

'erson, t%e obligation s%all ta/e effect in confor&ity it% t%e'rovisions of t%is $ode. (1115)

Art. 113#. ?&'ossible conditions, t%ose contrary to goodcusto&s or 'ublic 'olicy and t%ose 'ro%ibited by la s%alannul t%e obligation %ic% de'ends u'on t%e&. ?f t%e obligationis divisible, t%at 'art t%ereof %ic% is not affected by t%ei&'ossible or unlaful condition s%all be valid.

=%e condition not to do an i&'ossible t%ing s%all be considered

as not %aving been agreed u'on. (1116a)

Art. 113". =%e condition t%at so&e event %a''en at adeter&inate ti&e s%all etinguis% t%e obligation as soon as t%eti&e e'ires or if it %as beco&e indubitable t%at t%e event illnot ta/e 'lace. (111)

Art. 1135. =%e condition t%at so&e event ill not %a''en at adeter&inate ti&e s%all render t%e obligation effective fro& t%e&o&ent t%e ti&e indicated %as ela'sed, or if it %as beco&eevident t%at t%e event cannot occur.

?f no ti&e %as been fied, t%e condition s%all be dee&edfulfilled at suc% ti&e as &ay %ave 'robably been conte&'lated

bearing in &ind t%e nature of t%e obligation. (1113)

Art. 1136. =%e condition s%all be dee&ed fulfilled %en t%eobligor voluntarily 'revents its fulfill&ent. (1114)

Art. 113. =%e effects of a conditional obligation to give, oncet%e condition %as been fulfilled, s%all retroact to t%e day of t%econstitution of t%e obligation. evert%eless, %en t%e obligationi&'oses reci'rocal 'restations u'on t%e 'arties, t%e fruits andinterests during t%e 'endency of t%e condition s%all be dee&edto %ave been &utually co&'ensated. ?f t%e obligation isunilateral, t%e debtor s%all a''ro'riate t%e fruits and interestsreceived, unless fro& t%e nature and circu&stances of t%eobligation it s%ould be inferred t%at t%e intention of t%e 'erson

constituting t%e sa&e as different.

?n obligations to do and not to do, t%e courts s%all deter&ine, ineac% case, t%e retroactive effect of t%e condition t%at %as beenco&'lied it%. (112)

Art. 1133. =%e creditor &ay, before t%e fulfill&ent of t%econdition, bring t%e a''ro'riate actions for t%e 'reservation of%is rig%t.

=%e debtor &ay recover %at during t%e sa&e ti&e %e %as'aid by &ista/e in case of a sus'ensive condition. (111a)

Art. 1134. -%en t%e conditions %ave been i&'osed it% t%eintention of sus'ending t%e efficacy of an obligation to give, t%efolloing rules s%all be observed in case of t%e i&'rove&entloss or deterioration of t%e t%ing during t%e 'endency of t%econdition:

(1) ?f t%e t%ing is lost it%out t%e fault of t%e debtort%e obligation s%all be etinguis%ed9

() ?f t%e t%ing is lost t%roug% t%e fault of t%e debtor%e s%all be obliged to 'ay da&ages9 it is understoodt%at t%e t%ing is lost %en it 'eris%es, or goes out of


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co&&erce, or disa''ears in suc% a ay t%at itseistence is un/non or it cannot be recovered9

(#) -%en t%e t%ing deteriorates it%out t%e fault of t%edebtor, t%e i&'air&ent is to be borne by t%e creditor9

(") ?f it deteriorates t%roug% t%e fault of t%e debtor, t%ecreditor &ay c%oose beteen t%e rescission of t%eobligation and its fulfill&ent, it% inde&nity forda&ages in eit%er case9

(5) ?f t%e t%ing is i&'roved by its nature, or by ti&e,t%e i&'rove&ent s%all inure to t%e benefit of t%ecreditor9

(6) ?f it is i&'roved at t%e e'ense of t%e debtor, %es%all %ave no ot%er rig%t t%an t%at granted to t%eusufructuary. (11)

Art. 1142. -%en t%e conditions %ave for t%eir 'ur'ose t%eetinguis%&ent of an obligation to give, t%e 'arties, u'on t%efulfill&ent of said conditions, s%all return to eac% ot%er %att%ey %ave received.

?n case of t%e loss, deterioration or i&'rove&ent of t%e t%ing,t%e 'rovisions %ic%, it% res'ect to t%e debtor, are laid donin t%e 'receding article s%all be a''lied to t%e 'arty %o isbound to return.

As for t%e obligations to do and not to do, t%e 'rovisions of t%esecond 'aragra'% of Article 113 s%all be observed as regardst%e effect of t%e etinguis%&ent of t%e obligation. (11#)

c. -it% a =er& or 7eriod

Art. 1132. -%en t%e debtor binds %i&self to 'ay %en %is&eans 'er&it %i& to do so, t%e obligation s%all be dee&ed to

be one it% a 'eriod, subject to t%e 'rovisions of Article 114.

$=?O . 0 Obligations it% a 7eriod

Art. 114#. Obligations for %ose fulfill&ent a day certain %asbeen fied, s%all be de&andable only %en t%at day co&es.

Obligations it% a resolutory 'eriod ta/e effect at once, butter&inate u'on arrival of t%e day certain.

A day certain is understood to be t%at %ic% &ust necessarilyco&e, alt%oug% it &ay not be /non %en.

?f t%e uncertainty consists in %et%er t%e day ill co&e or not,t%e obligation is conditional, and it s%all be regulated by t%erules of t%e 'receding ection. (115a)

Art. 114". ?n case of loss, deterioration or i&'rove&ent of t%et%ing before t%e arrival of t%e day certain, t%e rules in Article1134 s%all be observed. (n)

Art. 1145. Anyt%ing 'aid or delivered before t%e arrival of t%e'eriod, t%e obligor being unaare of t%e 'eriod or believingt%at t%e obligation %as beco&e due and de&andable, &ay berecovered, it% t%e fruits and interests. (116a)

Art. 1146. -%enever in an obligation a 'eriod is designated, itis 'resu&ed to %ave been establis%ed for t%e benefit of bot%t%e creditor and t%e debtor, unless fro& t%e tenor of t%e sa&eor ot%er circu&stances it s%ould a''ear t%at t%e 'eriod %asbeen establis%ed in favor of one or of t%e ot%er. (11)

Art. 114. ?f t%e obligation does not fi a 'eriod, but fro& itsnature and t%e circu&stances it can be inferred t%at a 'eriodas intended, t%e courts &ay fi t%e duration t%ereof.

=%e courts s%all also fi t%e duration of t%e 'eriod %en itde'ends u'on t%e ill of t%e debtor.

?n every case, t%e courts s%all deter&ine suc% 'eriod as &ayunder t%e circu&stances %ave been 'robably conte&'lated byt%e 'arties. Once fied by t%e courts, t%e 'eriod cannot bec%anged by t%e&. (113a)

Art. 1143. =%e debtor s%all lose every rig%t to &a/e use of t%e'eriod:

(1) -%en after t%e obligation %as been contracted, %e beco&esinsolvent, unless %e gives a guaranty or security for t%e debt9

() -%en %e does not furnis% to t%e creditor t%e guaranties orsecurities %ic% %e %as 'ro&ised9

(#) -%en by %is on acts %e %as i&'aired said guaranties orsecurities after t%eir establis%&ent, and %en t%roug% afortuitous event t%ey disa''ear, unless %e i&&ediately givesne ones e*ually satisfactory9

(") -%en t%e debtor violates any underta/ing, in considerationof %ic% t%e creditor agreed to t%e 'eriod9

(5) -%en t%e debtor atte&'ts to abscond. (114a)

. As to 7lurality of 7restation

a. $onjunctive

b. Alternative

$=?O #. 0 Alternative Obligations

Art. 1144. A 'erson alternatively bound by different 'restationss%all co&'letely 'erfor& one of t%e&.

=%e creditor cannot be co&'elled to receive 'art of one and'art of t%e ot%er underta/ing. (11#1)

Art. 122. =%e rig%t of c%oice belongs to t%e debtor, unless i%as been e'ressly granted to t%e creditor.

=%e debtor s%all %ave no rig%t to c%oose t%ose 'restations%ic% are i&'ossible, unlaful or %ic% could not %ave beent%e object of t%e obligation. (11#)

Art. 121. =%e c%oice s%all 'roduce no effect ece't fro& t%eti&e it %as been co&&unicated. (11##)


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Art. 12. =%e debtor s%all lose t%e rig%t of c%oice %ena&ong t%e 'restations %ereby %e is alternatively bound, onlyone is 'racticable. (11#")

Art. 12#. ?f t%roug% t%e creditors acts t%e debtor cannot &a/ea c%oice according to t%e ter&s of t%e obligation, t%e latter &ayrescind t%e contract it% da&ages. (n)

Art. 12". =%e creditor s%all %ave a rig%t to inde&nity forda&ages %en, t%roug% t%e fault of t%e debtor, all t%e t%ings

%ic% are alternatively t%e object of t%e obligation %ave beenlost, or t%e co&'liance of t%e obligation %as beco&ei&'ossible.

=%e inde&nity s%all be fied ta/ing as a basis t%e value of t%elast t%ing %ic% disa''eared, or t%at of t%e service %ic% lastbeca&e i&'ossible.

Da&ages ot%er t%an t%e value of t%e last t%ing or service &ayalso be aarded. (11#5a)

Art. 125. -%en t%e c%oice %as been e'ressly given to t%ecreditor, t%e obligation s%all cease to be alternative fro& t%eday %en t%e selection %as been co&&unicated to t%e debtor.

Entil t%en t%e res'onsibility of t%e debtor s%all be governed byt%e folloing rules:

(1) ?f one of t%e t%ings is lost t%roug% a fortuitousevent, %e s%all 'erfor& t%e obligation by deliveringt%at %ic% t%e creditor s%ould c%oose fro& a&ong t%ere&ainder, or t%at %ic% re&ains if only one subsists9

() ?f t%e loss of one of t%e t%ings occurs t%roug% t%efault of t%e debtor, t%e creditor &ay clai& any of t%osesubsisting, or t%e 'rice of t%at %ic%, t%roug% t%e faultof t%e for&er, %as disa''eared, it% a rig%t to

da&ages9

(#) ?f all t%e t%ings are lost t%roug% t%e fault of t%edebtor, t%e c%oice by t%e creditor s%all fall u'on t%e'rice of any one of t%e&, also it% inde&nity forda&ages.

=%e sa&e rules s%all be a''lied to obligations to do or not todo in case one, so&e or all of t%e 'restations s%ould beco&ei&'ossible. (11#6a)

c. acultative

Art. 126. -%en only one 'restation %as been agreed u'on,

but t%e obligor &ay render anot%er in substitution, t%eobligation is called facultative.

=%e loss or deterioration of t%e t%ing intended as a substitute,t%roug% t%e negligence of t%e obligor, does not render %i&liable.


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-%en one of t%e solidary debtors cannot, because of %isinsolvency, rei&burse %is s%are to t%e debtor 'aying t%eobligation, suc% s%are s%all be borne by all %is co0debtors, in'ro'ortion to t%e debt of eac%. (11"5a)

Art. 113. 7ay&ent by a solidary debtor s%all not entitle %i& torei&burse&ent fro& %is co0debtors if suc% 'ay&ent is &adeafter t%e obligation %as 'rescribed or beco&e illegal. (n)

Art. 114. =%e re&ission &ade by t%e creditor of t%e s%are

%ic% affects one of t%e solidary debtors does not release t%elatter fro& %is res'onsibility toards t%e co0debtors, in case t%edebt %ad been totally 'aid by anyone of t%e& before t%ere&ission as effected. (11"6a)

Art. 12. =%e re&ission of t%e %ole obligation, obtained byone of t%e solidary debtors, does not entitle %i& torei&burse&ent fro& %is co0debtors. (n)

Art. 11. ?f t%e t%ing %as been lost or if t%e 'restation %asbeco&e i&'ossible it%out t%e fault of t%e solidary debtors, t%eobligation s%all be etinguis%ed.

?f t%ere as fault on t%e 'art of any one of t%e&, all s%all be

res'onsible to t%e creditor, for t%e 'rice and t%e 'ay&ent ofda&ages and interest, it%out 'rejudice to t%eir action againstt%e guilty or negligent debtor.

?f t%roug% a fortuitous event, t%e t%ing is lost or t%e'erfor&ance %as beco&e i&'ossible after one of t%e solidarydebtors %as incurred in delay t%roug% t%e judicial oretrajudicial de&and u'on %i& by t%e creditor, t%e 'rovisions oft%e 'receding 'aragra'% s%all a''ly. (11"a)

Art. 1. A solidary debtor &ay, in actions filed by t%e creditor,avail %i&self of all defenses %ic% are derived fro& t%e natureof t%e obligation and of t%ose %ic% are 'ersonal to %i&, or'ertain to %is on s%are. -it% res'ect to t%ose %ic%

'ersonally belong to t%e ot%ers, %e &ay avail %i&self t%ereofonly as regards t%at 'art of t%e debt for %ic% t%e latter areres'onsible.

a. oint

b. olidary

Art. 4. ?f to or &ore %eirs ta/e 'ossession of t%e estate,t%ey s%all be solidarily liable for t%e loss or destruction of at%ing devised or be*ueat%ed, even t%oug% only one of t%e&s%ould %ave been negligent. (n)

Art. 13". All 'artners are liable solidarily it% t%e 'artners%i'for everyt%ing c%argeable to t%e 'artners%i' under Articles13 and 13#. (n)

Art. 1411. ven %en t%e agent %as eceeded %is aut%ority, t%e'rinci'al is solidarily liable it% t%e agent if t%e for&er alloedt%e latter to act as t%oug% %e %ad full 'oers. (n)

Art. 1415. ?f to or &ore 'ersons %ave a''ointed an agent fora co&&on transaction or underta/ing, t%ey s%all be solidarilyliable to t%e agent for all t%e conse*uences of t%e agency.

Art. 14"5. -%en t%ere are to or &ore bailees to %o& a t%ingis loaned in t%e sa&e contract, t%ey are liable solidarily.

Art. 15. =%e res'onsibility of to or &ore 'ayees, %ent%ere %as been 'ay&ent of %at is not due, is solidary.

Art. 14". =%e res'onsibility of to or &ore 'ersons %o areliable for *uasi0delict is solidary.

Art. 1"6. ?f t%e officious &anager delegates to anot%er 'erson

all or so&e of %is duties, %e s%all be liable for t%e acts of t%edelegate, it%out 'rejudice to t%e direct obligation of t%e lattetoard t%e oner of t%e business.

Art. 4". =%e absolute co&&unity of 'ro'erty s%all be liable for:

(1) =%e su''ort of t%e s'ouses, t%eir co&&on c%ildren, and

legiti&ate c%ildren of eit%er s'ouse9 %oever, t%e su''ort of

illegiti&ate c%ildren s%all be governed by t%e 'rovisions of t%is

$ode on u''ort9

() All debts and obligations contracted during t%e &arriage by

t%e designated ad&inistrator0s'ouse for t%e benefit of t%e

co&&unity, or by bot% s'ouses, or by one s'ouse it% t%econsent of t%e ot%er9

(#) Debts and obligations contracted by eit%er s'ouse it%out

t%e consent of t%e ot%er to t%e etent t%at t%e fa&ily &ay %ave

been benefited9

(") All taes, liens, c%arges and e'enses, including &ajor or

&inor re'airs, u'on t%e co&&unity 'ro'erty9

(5) All taes and e'enses for &ere 'reservation &ade during

&arriage u'on t%e se'arate 'ro'erty of eit%er s'ouse used by

t%e fa&ily9

(6) 'enses to enable eit%er s'ouse to co&&ence or

co&'lete a 'rofessional or vocational course, or ot%er activity

for self0i&'rove&ent9

() Ante0nu'tial debts of eit%er s'ouse insofar as t%ey %ave

redounded to t%e benefit of t%e fa&ily9

(3) =%e value of %at is donated or 'ro&ised by bot% s'ouses

in favor of t%eir co&&on legiti&ate c%ildren for t%e eclusive

'ur'ose of co&&encing or co&'leting a 'rofessional or

vocational course or ot%er activity for self0i&'rove&ent9

(4) Ante0nu'tial debts of eit%er s'ouse ot%er t%an t%ose falling

under 'aragra'% () of t%is Article, t%e su''ort of illegiti&atec%ildren of eit%er s'ouse, and liabilities incurred by eit%er

s'ouse by reason of a cri&e or a *uasi0delict, in case of

absence or insufficiency of t%e eclusive 'ro'erty of t%e

debtor0s'ouse, t%e 'ay&ent of %ic% s%all be considered as

advances to be deducted fro& t%e s%are of t%e debtor0s'ouse

u'on li*uidation of t%e co&&unity9 and

(12) 'enses of litigation beteen t%e s'ouses unless t%e sui

is found to be groundless.


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?f t%e co&&unity 'ro'erty is insufficient to cover t%e foregoingliabilities, ece't t%ose falling under 'aragra'% (4), t%es'ouses s%all be solidarily liable for t%e un'aid balance it%t%eir se'arate 'ro'erties. (161a, 16a, 16#a, 2a025a)

Art. 11. =%e conjugal 'artners%i' s%all be liable for:

(1) =%e su''ort of t%e s'ouse, t%eir co&&on c%ildren, and t%e

legiti&ate c%ildren of eit%er s'ouse9 %oever, t%e su''ort of

illegiti&ate c%ildren s%all be governed by t%e 'rovisions of t%is

$ode on u''ort9

() All debts and obligations contracted during t%e &arriage by

t%e designated ad&inistrator0s'ouse for t%e benefit of t%e

conjugal 'artners%i' of gains, or by bot% s'ouses or by one of

t%e& it% t%e consent of t%e ot%er9

(#) Debts and obligations contracted by eit%er s'ouse it%out

t%e consent of t%e ot%er to t%e etent t%at t%e fa&ily &ay %ave

benefited9

(") All taes, liens, c%arges, and e'enses, including &ajor or

&inor re'airs u'on t%e conjugal 'artners%i' 'ro'erty9

(5) All taes and e'enses for &ere 'reservation &ade during

t%e &arriage u'on t%e se'arate 'ro'erty of eit%er s'ouse9

(6) 'enses to enable eit%er s'ouse to co&&ence or

co&'lete a 'rofessional, vocational, or ot%er activity for self0

i&'rove&ent9

() Ante0nu'tial debts of eit%er s'ouse insofar as t%ey %ave

redounded to t%e benefit of t%e fa&ily9

(3) =%e value of %at is donated or 'ro&ised by bot% s'ouses

in favor of t%eir co&&on legiti&ate c%ildren for t%e eclusive

'ur'ose of co&&encing or co&'leting a 'rofessional or

vocational course or ot%er activity for self0i&'rove&ent9 and

(4) 'enses of litigation beteen t%e s'ouses unless t%e suit

is found to groundless.

?f t%e conjugal 'artners%i' is insufficient to cover t%e foregoingliabilities, t%e s'ouses s%all be solidarily liable for t%e un'aidbalance it% t%eir se'arate 'ro'erties. (161a)

Art. 42. "rescription of crime. C $ri&es 'unis%able by deat%,reclusion 'er'etua or reclusion te&'oral s%all 'rescribe intenty years.

$ri&es 'unis%able by ot%er afflictive 'enalties s%all 'rescribein fifteen years.

=%ose 'unis%able by a correctional 'enalty s%all 'rescribe inten years9 it% t%e ece'tion of t%ose 'unis%able by arresto&ayor, %ic% s%all 'rescribe in five years.

=%e cri&e of libel or ot%er si&ilar offenses s%all 'rescribe inone year.

=%e cri&e of oral defa&ation and slander by deed s%all'rescribe in si &ont%s.

ig%t offenses 'rescribe in to &ont%s.c%an robles virtual lalibrary

-%en t%e 'enalty fied by la is a co&'ound one, t%e %ig%es'enalty s%all be &ade t%e basis of t%e a''lication of t%e rulescontained in t%e first, second and t%ird 'aragra'%s of t%isarticle.

c. Disjunctive

". As to 7erfor&ance of 7restation

Art. 11. ?f t%e t%ing %as been lost or if t%e 'restation %asbeco&e i&'ossible it%out t%e fault of t%e solidary debtors, t%eobligation s%all be etinguis%ed.

?f t%ere as fault on t%e 'art of any one of t%e&, all s%all beres'onsible to t%e creditor, for t%e 'rice and t%e 'ay&ent ofda&ages and interest, it%out 'rejudice to t%eir action against%e guilty or negligent debtor.

?f t%roug% a fortuitous event, t%e t%ing is lost or t%e'erfor&ance %as beco&e i&'ossible after one of t%e solidary

debtors %as incurred in delay t%roug% t%e judicial oetrajudicial de&and u'on %i& by t%e creditor, t%e 'rovisions ot%e 'receding 'aragra'% s%all a''ly. (11"a)

Art. 1. A solidary debtor &ay, in actions filed by t%e creditoravail %i&self of all defenses %ic% are derived fro& t%e natureof t%e obligation and of t%ose %ic% are 'ersonal to %i&, o'ertain to %is on s%are. -it% res'ect to t%ose %ic%'ersonally belong to t%e ot%ers, %e &ay avail %i&self t%ereoonly as regards t%at 'art of t%e debt for %ic% t%e latter areres'onsible.

$=?O 5. 0 Divisible and ?ndivisible Obligations

Art. 1#. =%e divisibility or indivisibility of t%e t%ings t%at aret%e object of obligations in %ic% t%ere is only one debtor andonly one creditor does not alter or &odify t%e 'rovisions o$%a'ter of t%is =itle. (11"4)

Art. 1". A joint indivisible obligation gives rise to inde&nityfor da&ages fro& t%e ti&e anyone of t%e debtors does noco&'ly it% %is underta/ing. =%e debtors %o &ay %ave beenready to fulfill t%eir 'ro&ises s%all not contribute to t%einde&nity beyond t%e corres'onding 'ortion of t%e 'rice of t%et%ing or of t%e value of t%e service in %ic% t%e obligationconsists. (1152)

Art. 15. or t%e 'ur'oses of t%e 'receding articlesobligations to give definite t%ings and t%ose %ic% are nosusce'tible of 'artial 'erfor&ance s%all be dee&ed to beindivisible.

-%en t%e obligation %as for its object t%e eecution of a certainnu&ber of days of or/, t%e acco&'lis%&ent of or/ by&etrical units, or analogous t%ings %ic% by t%eir nature aresusce'tible of 'artial 'erfor&ance, it s%all be divisible.

@oever, even t%oug% t%e object or service &ay be '%ysicallydivisible, an obligation is indivisible if so 'rovided by la ointended by t%e 'arties.


10/34

?n obligations not to do, divisibility or indivisibility s%all bedeter&ined by t%e c%aracter of t%e 'restation in eac% 'articularcase.

". As to t%e 7resence of an Accessory Enderta/ing in $ase of


11/34

@e s%all also be bound for arranty in case of eviction it%regard to s'ecific and deter&inate t%ings %ic% %e &ay %avecontributed to t%e 'artners%i', in t%e sa&e cases and in t%esa&e &anner as t%e vendor is bound it% res'ect to t%evendee. @e s%all also be liable for t%e fruits t%ereof fro& t%eti&e t%ey s%ould %ave been delivered, it%out t%e need of anyde&and.

Art. 133. A 'artner %o %as underta/en to contribute a su& of&oney and fails to do so beco&es a debtor for t%e interest and

da&ages fro& t%e ti&e %e s%ould %ave co&'lied it% %isobligation.

=%e sa&e rule a''lies to any a&ount %e &ay %ave ta/en fro&t%e 'artners%i' coffers, and %is liability s%all begin fro& t%eti&e %e converted t%e a&ount to %is on use.

Art. 1346. =%e agent oes interest on t%e su&s %e %as a''liedto %is on use fro& t%e day on %ic% %e did so, and on t%ose%ic% %e still oes after t%e etinguis%&ent of t%e agency.

Art. 14". =%e bailee is liable for t%e loss of t%e t%ing, even if its%ould be t%roug% a fortuitous event:

(1) ?f %e devotes t%e t%ing to any 'ur'ose differentfro& t%at for %ic% it %as been loaned9

() ?f %e /ee's it longer t%an t%e 'eriod sti'ulated, orafter t%e acco&'lis%&ent of t%e use for %ic%t%e commodatum%as been constituted9

(#) ?f t%e t%ing loaned %as been delivered it%a''raisal of its value, unless t%ere is a sti'ulationee&'tion t%e bailee fro& res'onsibility in case of afortuitous event9

(") ?f %e lends or leases t%e t%ing to a t%ird 'erson,

%o is not a &e&ber of %is %ouse%old9

(5) ?f, being able to save eit%er t%e t%ing borroed or %is ont%ing, %e c%ose to save t%e latter. (1""a and 1"5)

".Any ot%er Fanner of $ontravention

cuse for on07erfor&ance

1. ortuitous ventArt. 11". ce't in cases e'ressly s'ecified by t%e la, or%en it is ot%erise declared by sti'ulation, or %en t%e natureof t%e obligation re*uires t%e assu&'tion of ris/, no 'ersons%all be res'onsible for t%ose events %ic% could not beforeseen, or %ic%, t%oug% foreseen, ere inevitable.

Art. 55. A 'ossessor in good fait% s%all not be liable for t%edeterioration or loss of t%e t%ing 'ossessed, ece't in cases in%ic% it is 'roved t%at %e %as acted it% fraudulent intent ornegligence, after t%e judicial su&&ons.

A 'ossessor in bad fait% s%all be liable for deterioration or lossin every case, even if caused by a fortuitous event.

Art. 1165. -%en %at is to be delivered is a deter&inate t%ing,t%e creditor, in addition to t%e rig%t granted %i& by Article 112,&ay co&'el t%e debtor to &a/e t%e delivery.

?f t%e t%ing is indeter&inate or generic, %e &ay as/ t%at t%eobligation be co&'lied it% at t%e e'ense of t%e debtor.

?f t%e obligor delays, or %as 'ro&ised to deliver t%e sa&e t%ingto to or &ore 'ersons %o do not %ave t%e sa&e interest, %es%all be res'onsible for any fortuitous event until %e %aseffected t%e delivery.

Art. 1". =%e officious &anager s%all be liable for anyfortuitous event:

(1) ?f %e underta/es ris/y o'erations %ic% t%e oneas not accusto&ed to e&bar/ u'on9

() ?f %e %as 'referred %is on interest to t%at of t%eoner9

(#) ?f %e fails to return t%e 'ro'erty or business afterde&and by t%e oner9

(") ?f %e assu&ed t%e &anage&ent in bad fait%.

Art. 154. -%oever in bad fait% acce'ts an undue 'ay&ent

s%all 'ay legal interest if a su& of &oney is involved, or s%albe liable for fruits received or %ic% s%ould %ave been receivedif t%e t%ing 'roduces fruits.

@e s%all furt%er&ore be anserable for any loss or i&'air&entof t%e t%ing fro& any cause, and for da&ages to t%e 'erson%o delivered t%e t%ing, until it is recovered.

.Act of $reditor

. Be&edies for


12/34

Art. 112. =%ose %o in t%e 'erfor&ance of t%eir obligationsare guilty of fraud, negligence, or delay, and t%ose %o in any&anner contravene t%e tenor t%ereof, are liable for da&ages.

Art. 11. =%e creditors, after %aving 'ursued t%e 'ro'erty in'ossession of t%e debtor to satisfy t%eir clai&s, &ay eerciseall t%e rig%ts and bring all t%e actions of t%e latter for t%e sa&e'ur'ose, save t%ose %ic% are in%erent in %is 'erson9 t%ey&ay also i&'ugn t%e acts %ic% t%e debtor &ay %ave done todefraud t%e&. (1111)

Art. 113. ubject to t%e las, all rig%ts ac*uired in virtue of anobligation are trans&issible, if t%ere %as been no sti'ulation tot%e contrary.

Art. 1141. =%e 'oer to rescind obligations is i&'lied inreci'rocal ones, in case one of t%e obligors s%ould not co&'lyit% %at is incu&bent u'on %i&.

=%e injured 'arty &ay c%oose beteen t%e fulfill&ent and t%erescission of t%e obligation, it% t%e 'ay&ent of da&ages ineit%er case. @e &ay also see/ rescission, even after %e %asc%osen fulfill&ent, if t%e latter s%ould beco&e i&'ossible.

=%e court s%all decree t%e rescission clai&ed, unless t%ere bejust cause aut%ori+ing t%e fiing of a 'eriod.

=%is is understood to be it%out 'rejudice to t%e rig%ts of t%ird'ersons %o %ave ac*uired t%e t%ing, in accordance it%

Articles 1#35 and 1#33 and t%e Fortgage a. (11")

Art. 114. ?n case bot% 'arties %ave co&&itted a breac% of t%eobligation, t%e liability of t%e first infractor s%all be e*uitablyte&'ered by t%e courts. ?f it cannot be deter&ined %ic% of t%e'arties first violated t%e contract, t%e sa&e s%all be dee&edetinguis%ed, and eac% s%all bear %is on da&ages.

Art. #6. =%e debtor is liable it% all %is 'ro'erty, 'resent and

future, for t%e fulfill&ent of %is obligations, subject to t%eee&'tions 'rovided by la.

Art. #2. eit%er t%e rig%t to receive legal su''ort nor any&oney or 'ro'erty obtained as suc% su''ort or any 'ension orgratuity fro& t%e govern&ent is subject to attac%&ent oreecution.

Art. 123. =%e laborers ages s%all not be subject toeecution or attac%&ent, ece't for debts incurred for food,s%elter, clot%ing and &edical attendance.

Art. 15#. (fa&ily $ode) =%e fa&ily %o&e is dee&ed constituted

on a %ouse and lot fro& t%e ti&e it is occu'ied as a fa&ily

residence. ro& t%e ti&e of its constitution and so long as anyof its beneficiaries actually resides t%erein, t%e fa&ily %o&e

continues to be suc% and is ee&'t fro& eecution, forced sale

or attac%&ent ece't as %ereinafter 'rovided and to t%e etent

of t%e value alloed by la. (#a)

Art. 155. =%e fa&ily %o&e s%all be ee&'t fro& eecution,

forced sale or attac%&ent ece't:

(1) or non'ay&ent of taes9

() or debts incurred 'rior to t%e constitution of t%e fa&ily

%o&e9

(#) or debts secured by &ortgages on t%e 're&ises before or

after suc% constitution9 and

(") or debts due to laborers, &ec%anics, arc%itects, builders&aterial&en and ot%ers %o %ave rendered service ofurnis%ed &aterial for t%e construction of t%e building.

Bule #4 ec. 1#, Bules of $ourt7ro'erty ee&'t fro& eecution.

ce't as ot%erise e'ressly 'rovided by la, t%e folloing'ro'erty, and no ot%er, s%all be ee&'t fro& eecution:

(a) =%e judg&ent obligors fa&ily %o&e as 'rovided by la, ort%e %o&estead in %ic% %e resides, and land necessarily usedin connection t%ereit%9

(b) Ordinary tools and i&'le&ents 'ersonally used by %i& in %strade, e&'loy&ent, or liveli%ood9

(c) =%ree %orses, or t%ree cos, or t%ree carabaos, or ot%erbeasts of burden suc% as t%e judg&ent obligor &ay selecnecessarily used by %i& in %is ordinary occu'ation9

(d) @is necessary clot%ing and articles for ordinary 'ersona

use, ecluding jeelry9

(e) @ouse%old furniture and utensils necessary fo%ouse/ee'ing, and used for t%at 'ur'ose by t%e judg&enobligor and %is fa&ily, suc% as t%e judg&ent obligor &ayselect, of a value not eceeding one %undred t%ousand 'esos9

(f) 7rovisions for individual or fa&ily use sufficient for fou&ont%s9

(g) =%e 'rofessional libraries and e*ui'&ent of judgeslayers, '%ysicians, '%ar&acists, dentists, engineerssurveyors, clergy&en, teac%ers, and ot%er 'rofessionals, noeceeding t%ree %undred t%ousand 'esos in value9

(%) One fis%ing boat and accessories not eceeding t%e totavalue of one %undred t%ousand 'esos oned by a fis%er&anand by t%e laful use of %ic% %e earns %is liveli%ood9

(i) o &uc% of t%e salaries, ages, or earnings of t%e judg&enobligor of %is 'ersonal services it%in t%e four &ont%s'receding t%e levy as are necessary for t%e su''ort of %isfa&ily9

(j) ettered gravestones9

(/) Fonies benefits, 'rivileges, or annuities accruing or in any&anner groing out of any life insurance9

(l) =%e rig%t to receive legal su''ort, or &oney or 'ro'erty

obtained as suc% su''ort, or any 'ension or gratuity fro& t%eGovern&ent9

(&) 7ro'erties s'ecially ee&'t by la.


13/34

a. 'ressly ranted by a

Art. 136. very 'artner is a debtor of t%e 'artners%i' for%atever %e &ay %ave 'ro&ised to contribute t%ereto.

@e s%all also be bound for arranty in case of eviction it%regard to s'ecific and deter&inate t%ings %ic% %e &ay %avecontributed to t%e 'artners%i', in t%e sa&e cases and in t%esa&e &anner as t%e vendor is bound it% res'ect to t%evendee. @e s%all also be liable for t%e fruits t%ereof fro& t%e

ti&e t%ey s%ould %ave been delivered, it%out t%e need of anyde&and. (1631a)

Art. 133. A 'artner %o %as underta/en to contribute a su& of&oney and fails to do so beco&es a debtor for t%e interest andda&ages fro& t%e ti&e %e s%ould %ave co&'lied it% %isobligation.

=%e sa&e rule a''lies to any a&ount %e &ay %ave ta/en fro&t%e 'artners%i' coffers, and %is liability s%all begin fro& t%eti&e %e converted t%e a&ount to %is on use.

Art. 156. ubject to t%e 'rovisions of t%is =itle,notit%standing t%at t%e oners%i' in t%e goods &ay %ave

'assed to t%e buyer, t%e un'aid seller of goods, as suc%, %as:

(1) A lien on t%e goods or rig%t to retain t%e& for t%e'rice %ile %e is in 'ossession of t%e&9

() ?n case of t%e insolvency of t%e buyer, a rig%t ofsto''ing t%e goods in transitu after %e %as 'arted it%t%e 'ossession of t%e&9

(#) A rig%t of resale as li&ited by t%is =itle9

(") A rig%t to rescind t%e sale as li/eise li&ited byt%is =itle.

-%ere t%e oners%i' in t%e goods %as not 'assed to t%ebuyer, t%e un'aid seller %as, in addition to %is ot%er re&edies arig%t of it%%olding delivery si&ilar to and coetensive it% %isrig%ts of lien and sto''age in transitu %ere t%e oners%i' %as'assed to t%e buyer.

. udicial Be&edies

a.7rinci'al Be&edies

Art. 1141. =%e 'oer to rescind obligations is i&'lied inreci'rocal ones, in case one of t%e obligors s%ould not co&'lyit% %at is incu&bent u'on %i&.

=%e injured 'arty &ay c%oose beteen t%e fulfill&ent and t%erescission of t%e obligation, it% t%e 'ay&ent of da&ages ineit%er case. @e &ay also see/ rescission, even after %e %asc%osen fulfill&ent, if t%e latter s%ould beco&e i&'ossible.

=%e court s%all decree t%e rescission clai&ed, unless t%ere bejust cause aut%ori+ing t%e fiing of a 'eriod.

=%is is understood to be it%out 'rejudice to t%e rig%ts of t%ird'ersons %o %ave ac*uired t%e t%ing, in accordance it%

Articles 1#35 and 1#33 and t%e Fortgage a.

Art. 112. =%ose %o in t%e 'erfor&ance of t%eir obligationsare guilty of fraud, negligence, or delay, and t%ose %o in any&anner contravene t%e tenor t%ereof, are liable for da&ages.

b. ubsidiary Be&edies

Art. 1#32. $ontracts validly agreed u'on &ay be rescinded int%e cases establis%ed by la.

Art. 11. =%e creditors, after %aving 'ursued t%e 'ro'erty in'ossession of t%e debtor to satisfy t%eir clai&s, &ay eercise

all t%e rig%ts and bring all t%e actions of t%e latter for t%e sa&e'ur'ose, save t%ose %ic% are in%erent in %is 'erson9 t%ey&ay also i&'ugn t%e acts %ic% t%e debtor &ay %ave done todefraud t%e&.

c. Ancillary Be&edies Bules Of $ourt

Fodes Of tinguis%&ent of Obligations

Art. 1#1. Obligations are etinguis%ed:(1)


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against t%e ill of t%e debtor, %e can recover only insofar as t%e'ay&ent %as been beneficial to t%e debtor. (1153a)

Art. 1#. -%oever 'ays on be%alf of t%e debtor it%out t%e/noledge or against t%e ill of t%e latter, cannot co&'el t%ecreditor to subrogate %i& in %is rig%ts, suc% as t%ose arisingfro& a &ortgage, guaranty, or 'enalty. (1154a)

Art. 1#3. 7ay&ent &ade by a t%ird 'erson %o does notintend to be rei&bursed by t%e debtor is dee&ed to be a

donation, %ic% re*uires t%e debtors consent.


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(#) -%en, even it%out t%e /noledge of t%e debtor, a 'ersoninterested in t%e fulfill&ent of t%e obligation 'ays, it%out'rejudice to t%e effects of confusion as to t%e latters s%are.

BA 313#, re'ealing BA 54: JA A$= B7A?G B7E


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Art. 15. ?n order t%at t%e consignation of t%e t%ing due &ayrelease t%e obligor, it &ust first be announced to t%e 'ersonsinterested in t%e fulfill&ent of t%e obligation.

=%e consignation s%all be ineffectual if it is not &ade strictly inconsonance it% t%e 'rovisions %ic% regulate 'ay&ent.

Art. 153. $onsignation s%all be &ade by de'ositing t%e t%ingsdue at t%e dis'osal of judicial aut%ority, before %o& t%etender of 'ay&ent s%all be 'roved, in a 'ro'er case, and t%e

announce&ent of t%e consignation in ot%er cases.

=%e consignation %aving been &ade, t%e interested 'artiess%all also be notified t%ereof. (113)

Art. 154. =%e e'enses of consignation, %en 'ro'erly &ade,s%all be c%arged against t%e creditor. (113)

Art. 162. Once t%e consignation %as been duly &ade, t%edebtor &ay as/ t%e judge to order t%e cancellation of t%eobligation.


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Art. 163. -%en t%e debt of a t%ing certain and deter&inate'roceeds fro& a cri&inal offense, t%e debtor s%all not beee&'ted fro& t%e 'ay&ent of its 'rice, %atever &ay be t%ecause for t%e loss, unless t%e t%ing %aving been offered by %i&to t%e 'erson %o s%ould receive it, t%e latter refused it%out

justification to acce't it.

Art. 14". =%e bailee is liable for t%e loss of t%e t%ing, even if its%ould be t%roug% a fortuitous event:

(1) ?f %e devotes t%e t%ing to any 'ur'ose differentfro& t%at for %ic% it %as been loaned9

() ?f %e /ee's it longer t%an t%e 'eriod sti'ulated, orafter t%e acco&'lis%&ent of t%e use for %ic%t%e commodatum%as been constituted9

(#) ?f t%e t%ing loaned %as been delivered it%a''raisal of its value, unless t%ere is a sti'ulationee&'tion t%e bailee fro& res'onsibility in case of afortuitous event9

(") ?f %e lends or leases t%e t%ing to a t%ird 'erson,%o is not a &e&ber of %is %ouse%old9

(5) ?f, being able to save eit%er t%e t%ing borroed or %is ont%ing, %e c%ose to save t%e latter.

Art. 144. =%e de'ositary is liable for t%e loss of t%e t%ingt%roug% a fortuitous event:

(1) ?f it is so sti'ulated9

() ?f %e uses t%e t%ing it%out t%e de'ositors'er&ission9

(#) ?f %e delays its return9

(") ?f %e allos ot%ers to use it, even t%oug% %e %i&self &ay%ave been aut%ori+ed to use t%e sa&e.

Art. 1". =%e officious &anager s%all be liable for anyfortuitous event:

(1) ?f %e underta/es ris/y o'erations %ic% t%e oneras not accusto&ed to e&bar/ u'on9

() ?f %e %as 'referred %is on interest to t%at of t%eoner9

(#) ?f %e fails to return t%e 'ro'erty or business afterde&and by t%e oner9

(") ?f %e assu&ed t%e &anage&ent in bad fait%.

Art. 154. -%oever in bad fait% acce'ts an undue 'ay&ent,s%all 'ay legal interest if a su& of &oney is involved, or s%allbe liable for fruits received or %ic% s%ould %ave been receivedif t%e t%ing 'roduces fruits.

@e s%all furt%er&ore be anserable for any loss or i&'air&entof t%e t%ing fro& any cause, and for da&ages to t%e 'erson%o delivered t%e t%ing, until it is recovered. (1346a)

#. $ondonation or Be&ission of Debt

Art. 12. $ondonation or re&ission is essentially gratuitousand re*uires t%e acce'tance by t%e obligor. ?t &ay be &adee'ressly or i&'liedly.

One and t%e ot%er /ind s%all be subject to t%e rules %ic%govern inofficious donations. 'ress condonation s%allfurt%er&ore, co&'ly it% t%e for&s of donation. (113)

Art. 11. =%e delivery of a 'rivate docu&ent evidencing acredit, &ade voluntarily by t%e creditor to t%e debtor, i&'liest%e renunciation of t%e action %ic% t%e for&er %ad against t%elatter.

?f in order to nullify t%is aiver it s%ould be clai&ed to beinofficious, t%e debtor and %is %eirs &ay u'%old it by 'rovingt%at t%e delivery of t%e docu&ent as &ade in virtue o'ay&ent of t%e debt. (1133)

Art. 1. -%enever t%e 'rivate docu&ent in %ic% t%e deba''ears is found in t%e 'ossession of t%e debtor, it s%all be'resu&ed t%at t%e creditor delivered it voluntarily, unless t%econtrary is 'roved. (1134)

Art. 1#. =%e renunciation of t%e 'rinci'al debt s%aletinguis% t%e accessory obligations9 but t%e aiver of t%elatter s%all leave t%e for&er in force. (1142)

Art. 1". ?t is 'resu&ed t%at t%e accessory obligation o'ledge %as been re&itted %en t%e t%ing 'ledged, after itsdelivery to t%e creditor, is found in t%e 'ossession of t%e debtoror of a t%ird 'erson %o ons t%e t%ing.

Art. "3. =%e donation of a &ovable &ay be &ade orally or inriting.

An oral donation re*uires t%e si&ultaneous delivery of t%e t%ingor of t%e docu&ent re'resenting t%e rig%t donated.

?f t%e value of t%e 'ersonal 'ro'erty donated eceeds fivet%ousand 'esos, t%e donation and t%e acce'tance s%all be&ade in riting, ot%erise, t%e donation s%all be void. (6#a)

Art. "4. ?n order t%at t%e donation of an i&&ovable &ay bevalid, it &ust be &ade in a 'ublic docu&ent, s'ecifying t%ereint%e 'ro'erty donated and t%e value of t%e c%arges %ic% t%edonee &ust satisfy.

=%e acce'tance &ay be &ade in t%e sa&e deed of donation oin a se'arate 'ublic docu&ent, but it s%all not ta/e effec

unless it is done during t%e lifeti&e of t%e donor.

?f t%e acce'tance is &ade in a se'arate instru&ent, t%e donos%all be notified t%ereof in an aut%entic for&, and t%is ste' s%albe noted in bot% instru&ents.

". $onfusion or Ferger of Big%ts

$=?O ". 0 $onfusion or Ferger of Big%ts

Art. 15. =%e obligation is etinguis%ed fro& t%e ti&e t%ec%aracters of creditor and debtor are &erged in t%e sa&e'erson. (114a)


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Art. 16. Ferger %ic% ta/es 'lace in t%e 'erson of t%e'rinci'al debtor or creditor benefits t%e guarantors. $onfusion%ic% ta/es 'lace in t%e 'erson of any of t%e latter does notetinguis% t%e obligation. (114#)

Art. 1. $onfusion does not etinguis% a joint obligationece't as regards t%e s%are corres'onding to t%e creditor ordebtor in %o& t%e to c%aracters concur.

Art. 115. ovation, co&'ensation, confusion or re&ission of

t%e debt, &ade by any of t%e solidary creditors or it% any oft%e solidary debtors, s%all etinguis% t%e obligation, it%out'rejudice to t%e 'rovisions of Article 114.

=%e creditor %o &ay %ave eecuted any of t%ese acts, as ellas %e %o collects t%e debt, s%all be liable to t%e ot%ers for t%es%are in t%e obligation corres'onding to t%e&. (11"#)

Art. 11. 7ay&ent &ade by one of t%e solidary debtorsetinguis%es t%e obligation. ?f to or &ore solidary debtorsoffer to 'ay, t%e creditor &ay c%oose %ic% offer to acce't.

@e %o &ade t%e 'ay&ent &ay clai& fro& %is co0debtors onlyt%e s%are %ic% corres'onds to eac%, it% t%e interest for t%e

'ay&ent already &ade. ?f t%e 'ay&ent is &ade before t%e debtis due, no interest for t%e intervening 'eriod &ay bede&anded.

-%en one of t%e solidary debtors cannot, because of %isinsolvency, rei&burse %is s%are to t%e debtor ultative

'aying t%e obligation, suc% s%are s%all be borne by all %is co0debtors, in 'ro'ortion to t%e debt of eac%.

5. $o&'ensation

$=?O 5. 0 $o&'ensation

Art. 13. $o&'ensation s%all ta/e 'lace %en to 'ersons, int%eir on rig%t, are creditors and debtors of eac% ot%er. (1145)

Art. 14. ?n order t%at co&'ensation &ay be 'ro'er, it isnecessary:

(1) =%at eac% one of t%e obligors be bound 'rinci'ally,and t%at %e be at t%e sa&e ti&e a 'rinci'al creditor oft%e ot%er9

() =%at bot% debts consist in a su& of &oney, or ift%e t%ings due are consu&able, t%ey be of t%e sa&e/ind, and also of t%e sa&e *uality if t%e latter %as

been stated9

(#) =%at t%e to debts be due9

(") =%at t%ey be li*uidated and de&andable9

(5) =%at over neit%er of t%e& t%ere be any retention orcontroversy, co&&enced by t%ird 'ersons andco&&unicated in due ti&e to t%e debtor. (1146)

Art. 132. otit%standing t%e 'rovisions of t%e 'recedingarticle, t%e guarantor &ay set u' co&'ensation as regards%at t%e creditor &ay oe t%e 'rinci'al debtor. (114)

Art. 131. $o&'ensation &ay be total or 'artial. -%en t%e todebts are of t%e sa&e a&ount, t%ere is a total co&'ensation.

Art. 13. =%e 'arties &ay agree u'on t%e co&'ensation odebts %ic% are not yet due. (n)

Art. 13#. ?f one of t%e 'arties to a suit over an obligation %as aclai& for da&ages against t%e ot%er, t%e for&er &ay set it ofby 'roving %is rig%t to said da&ages and t%e a&ount t%ereof.

Art. 13". -%en one or bot% debts are rescissible or voidablet%ey &ay be co&'ensated against eac% ot%er before t%ey are

judicially rescinded or avoided. (n)

Art. 135. =%e debtor %o %as consented to t%e assign&ent orig%ts &ade by a creditor in favor of a t%ird 'erson, cannot seu' against t%e assignee t%e co&'ensation %ic% ould 'ertainto %i& against t%e assignor, unless t%e assignor as notified byt%e debtor at t%e ti&e %e gave %is consent, t%at %e reserved %isrig%t to t%e co&'ensation.

?f t%e creditor co&&unicated t%e cession to %i& but t%e debtordid not consent t%ereto, t%e latter &ay set u' t%e co&'ensationof debts 'revious to t%e cession, but not of subse*uent ones.

?f t%e assign&ent is &ade it%out t%e /noledge of t%e debtor%e &ay set u' t%e co&'ensation of all credits 'rior to t%e sa&eand also later ones until %e %ad /noledge of t%e assign&ent(1143a)

Art. 136. $o&'ensation ta/es 'lace by o'eration of la, event%oug% t%e debts &ay be 'ayable at different 'laces, but t%eres%all be an inde&nity for e'enses of ec%ange o

trans'ortation to t%e 'lace of 'ay&ent. (1144a)

Art. 13. $o&'ensation s%all not be 'ro'er %en one of t%edebts arises fro& a de'ositu& or fro& t%e obligations of ade'ositary or of a bailee in co&&odatu&.

eit%er can co&'ensation be set u' against a creditor %o %asa clai& for su''ort due by gratuitous title, it%out 'rejudice tot%e 'rovisions of 'aragra'% of Article #21. (122a)

Art. 133. eit%er s%all t%ere be co&'ensation if one of t%edebts consists in civil liability arising fro& a 'enal offense. (n)

Art. 134. ?f a 'erson s%ould %ave against %i& several debts

%ic% are susce'tible of co&'ensation, t%e rules on t%ea''lication of 'ay&ents s%all a''ly to t%e order of t%eco&'ensation. (121)

Art. 142. -%en all t%e re*uisites &entioned in Article 14 are'resent, co&'ensation ta/es effect by o'eration of la, andetinguis%es bot% debts to t%e concurrent a&ount, even t%oug%t%e creditors and debtors are not aare of t%e co&'ensation.

!inds of $o&'ensation

a. egalb. $onventional L acultative


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c. udicial

6. ovation

$=?O 6. 0 ovation

Art. 141. Obligations &ay be &odified by:(1) $%anging t%eir object or 'rinci'al conditions9

() ubstituting t%e 'erson of t%e debtor9

(#) ubrogating a t%ird 'erson in t%e rig%ts of t%ecreditor. (12#)

Art. 14. ?n order t%at an obligation &ay be etinguis%ed byanot%er %ic% substitute t%e sa&e, it is i&'erative t%at it be sodeclared in une*uivocal ter&s, or t%at t%e old and t%e neobligations be on every 'oint inco&'atible it% eac% ot%er.

Art. 14#. ovation %ic% consists in substituting a ne debtorin t%e 'lace of t%e original one, &ay be &ade even it%out t%e/noledge or against t%e ill of t%e latter, but not it%out t%econsent of t%e creditor. 7ay&ent by t%e ne debtor gives %i&

t%e rig%ts &entioned in Articles 1#6 and 1#. (125a)

Art. 14". ?f t%e substitution is it%out t%e /noledge oragainst t%e ill of t%e debtor, t%e ne debtors insolvency ornon0fulfill&ent of t%e obligations s%all not give rise to anyliability on t%e 'art of t%e original debtor. (n)

Art. 145. =%e insolvency of t%e ne debtor, %o %as been'ro'osed by t%e original debtor and acce'ted by t%e creditor,s%all not revive t%e action of t%e latter against t%e originalobligor, ece't %en said insolvency as already eisting andof 'ublic /noledge, or /non to t%e debtor, %en t%edelegated %is debt. (126a)

Art. 146. -%en t%e 'rinci'al obligation is etinguis%ed inconse*uence of a novation, accessory obligations &ay subsistonly insofar as t%ey &ay benefit t%ird 'ersons %o did not givet%eir consent. (12)

Art. 14. ?f t%e ne obligation is void, t%e original one s%allsubsist, unless t%e 'arties intended t%at t%e for&er relations%ould be etinguis%ed in any event. (n)

Art. 143. =%e novation is void if t%e original obligation asvoid, ece't %en annul&ent &ay be clai&ed only by t%edebtor or %en ratification validates acts %ic% are voidable.(123a)

Art. 144. ?f t%e original obligation as subject to a sus'ensiveor resolutory condition, t%e ne obligation s%all be under t%esa&e condition, unless it is ot%erise sti'ulated. (n)

Art. 1#22. ubrogation of a t%ird 'erson in t%e rig%ts of t%ecreditor is eit%er legal or conventional. =%e for&er is not'resu&ed, ece't in cases e'ressly &entioned in t%is $ode9t%e latter &ust be clearly establis%ed in order t%at it &ay ta/eeffect. (124a)

Art. 1#21. $onventional subrogation of a t%ird 'erson re*uirest%e consent of t%e original 'arties and of t%e t%ird 'erson. (n)

Art. 1#2. ?t is 'resu&ed t%at t%ere is legal subrogation:

(1) -%en a creditor 'ays anot%er creditor %o is'referred, even it%out t%e debtors /noledge9

() -%en a t%ird 'erson, not interested in t%eobligation, 'ays it% t%e e'ress or tacit a''roval ot%e debtor9

(#) -%en, even it%out t%e /noledge of t%e debtor, a

'erson interested in t%e fulfill&ent of t%e obligation'ays, it%out 'rejudice to t%e effects of confusion asto t%e latters s%are. (112a)

Art. 1#2#. ubrogation transfers to t%e 'ersons subrogated t%ecredit it% all t%e rig%ts t%ereto a''ertaining, eit%er against t%edebtor or against t%ird 'erson, be t%ey guarantors o'ossessors of &ortgages, subject to sti'ulation in aconventional subrogation. (11a)

Art. 1#2". A creditor, to %o& 'artial 'ay&ent %as been &ade&ay eercise %is rig%t for t%e re&ainder, and %e s%all be'referred to t%e 'erson %o %as been subrogated in %is 'lacein virtue of t%e 'artial 'ay&ent of t%e sa&e credit.

Art. 115. ovation, co&'ensation, confusion or re&ission ot%e debt, &ade by any of t%e solidary creditors or it% any oft%e solidary debtors, s%all etinguis% t%e obligation, it%ou'rejudice to t%e 'rovisions of Article 114.

=%e creditor %o &ay %ave eecuted any of t%ese acts, as elas %e %o collects t%e debt, s%all be liable to t%e ot%ers for t%es%are in t%e obligation corres'onding to t%e&.

!inds of ovation

As to its nature: subjective or 'ersonal9 objective or real

As to its for&: e'ress or i&'lied

. Ot%er Fodes

Title II. - CONTRACTS

CHAPTER 1

GENERAL PROVISIONS

Definition: Art. 1#25. A contract is a &eeting of &inds beteento 'ersons %ereby one binds %i&self, it% res'ect to t%eot%er, to give so&et%ing or to render so&e service. (15"a)

Auto0contracts:

Art. 1"41. =%e folloing 'ersons cannot ac*uire by 'urc%aseeven at a 'ublic or judicial auction, eit%er in 'erson or t%roug%t%e &ediation of anot%er:

(1) =%e guardian, t%e 'ro'erty of t%e 'erson o'ersons %o &ay be under %is guardians%i'9

() Agents, t%e 'ro'erty %ose ad&inistration or sale&ay %ave been entrusted to t%e&, unless t%e consenof t%e 'rinci'al %as been given9


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(#) ecutors and ad&inistrators, t%e 'ro'erty of t%eestate under ad&inistration9

(") 7ublic officers and e&'loyees, t%e 'ro'erty of t%etate or of any subdivision t%ereof, or of anygovern&ent0oned or controlled cor'oration, orinstitution, t%e ad&inistration of %ic% %as beenintrusted to t%e&9 t%is 'rovision s%all a''ly to judgesand govern&ent e'erts %o, in any &anner%atsoever, ta/e 'art in t%e sale9

(5) ustices, judges, 'rosecuting attorneys, cler/s ofsu'erior and inferior courts, and ot%er officers ande&'loyees connected it% t%e ad&inistration of

justice, t%e 'ro'erty and rig%ts in litigation or leviedu'on an eecution before t%e court it%in %ose

jurisdiction or territory t%ey eercise t%eir res'ectivefunctions9 t%is 'ro%ibition includes t%e act of ac*uiringby assign&ent and s%all a''ly to layers, it%res'ect to t%e 'ro'erty and rig%ts %ic% &ay be t%eobject of any litigation in %ic% t%ey &ay ta/e 'art byvirtue of t%eir 'rofession.

(6) Any ot%ers s'ecially dis*ualified by la.

Art. 16"6. =%e 'ersons dis*ualified to buy referred to in Articles1"42 and 1"41, are also dis*ualified to beco&e lessees of t%et%ings &entioned t%erein.

Art. 1342. ?f t%e agent %as been e&'oered to borro &oney,%e &ay %i&self be t%e lender at t%e current rate of interest. ?f%e %as been aut%ori+ed to lend &oney at interest, %e cannotborro it it%out t%e consent of t%e 'rinci'al.

le&ents of a $ontract:

ssential t%ose it%out %ic% t%ere can be no contract9consent, subject &atter, cause

atural t%ose %ic% eist as 'art of t%e contract even if t%e'arties do not 'rovide for t%e&, because t%e la, as su''letoryto t%e contract, creates t%e&9 e: arranty against eviction

Accidental t%ose %ic% are agreed u'on by t%e 'arties abd%ic% cannot eist it%out being sti'ulated


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=%e acce'tance &ay be &ade in t%e sa&e deed of donation orin a se'arate 'ublic docu&ent, but it s%all not ta/e effectunless it is done during t%e lifeti&e of t%e donor.

?f t%e acce'tance is &ade in a se'arate instru&ent, t%e donors%all be notified t%ereof in an aut%entic for&, and t%is ste' s%allbe noted in bot% instru&ents.

5. Belativity of $ontracts

Art. 1#11. $ontracts ta/e effect only beteen t%e 'arties, t%eirassigns and %eirs, ece't in case %ere t%e rig%ts andobligations arising fro& t%e contract are not trans&issible byt%eir nature, or by sti'ulation or by 'rovision of la. =%e %eir isnot liable beyond t%e value of t%e 'ro'erty %e received fro&t%e decedent.

?f a contract s%ould contain so&e sti'ulation in favor of a t%ird'erson, %e &ay de&and its fulfill&ent 'rovided %eco&&unicated %is acce'tance to t%e obligor before itsrevocation. A &ere incidental benefit or interest of a 'erson isnot sufficient. =%e contracting 'arties &ust %ave clearly anddeliberately conferred a favor u'on a t%ird 'erson. (15a)

Art. 1#1. ?n contracts creating real rig%ts, t%ird 'ersons %oco&e into 'ossession of t%e object of t%e contract are boundt%ereby, subject to t%e 'rovisions of t%e Fortgage a and t%eand Begistration as. (n)

Art. 1#1#. $reditors are 'rotected in cases of contractsintended to defraud t%e&. (n)

Art. 1#1". Any t%ird 'erson %o induces anot%er to violate %iscontract s%all be liable for da&ages to t%e ot%er contracting'arty.

Art. 11. =%e creditors, after %aving 'ursued t%e 'ro'erty in

'ossession of t%e debtor to satisfy t%eir clai&s, &ay eerciseall t%e rig%ts and bring all t%e actions of t%e latter for t%e sa&e'ur'ose, save t%ose %ic% are in%erent in %is 'erson9 t%ey&ay also i&'ugn t%e acts %ic% t%e debtor &ay %ave done todefraud t%e&. (1111)


Art. 1#31. =%e folloing contracts are rescissible:

(1) =%ose %ic% are entered into by guardians%enever t%e ards %o& t%ey re'resent suffer

lesion by &ore t%an one0fourt% of t%e value of t%et%ings %ic% are t%e object t%ereof9

() =%ose agreed u'on in re'resentation ofabsentees, if t%e latter suffer t%e lesion stated in t%e'receding nu&ber9

(#) =%ose underta/en in fraud of creditors %en t%elatter cannot in any ot%er &anner collect t%e clai&sdue t%e&9

(") =%ose %ic% refer to t%ings under litigation if t%ey%ave been entered into by t%e defendant it%out t%e

/noledge and a''roval of t%e litigants or oco&'etent judicial aut%ority9

(5) All ot%er contracts s'ecially declared by la to be subject torescission.

$. $lassification of $ontracts

1. According to Degree of De'endence

a. 7re'aratory

Art. 1"4. A 'ro&ise to buy and sell a deter&inate t%ing for a'rice certain is reci'rocally de&andable.

An acce'ted unilateral 'ro&ise to buy or to sell a deter&inatet%ing for a 'rice certain is binding u'on t%e 'ro&issor if t%e'ro&ise is su''orted by a consideration distinct fro& t%e 'rice.

Art. 16.


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Art. 146. A de'osit is constituted fro& t%e &o&ent a 'ersonreceives a t%ing belonging to anot%er, it% t%e obligation ofsafely /ee'ing it and of returning t%e sa&e. ?f t%e safe/ee'ingof t%e t%ing delivered is not t%e 'rinci'al 'ur'ose of t%econtract, t%ere is no de'osit but so&e ot%er contract.

c. Accessory

Art. 2".


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Art. 16". =%e contract of lease &ay be of t%ings, or of or/and service.

Art. 1"53.


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Art. 1#13. =%ere is no contract unless t%e folloing re*uisitesconcur:

(1) $onsent of t%e contracting 'arties9

() Object certain %ic% is t%e subject &atter of t%econtract9

(#) $ause of t%e obligation %ic% is establis%ed.

1. $onsent of t%e $ontracting 7arties

$=?O 1. 0 $onsent

Art. 1#14. $onsent is &anifested by t%e &eeting of t%e offerand t%e acce'tance u'on t%e t%ing and t%e cause %ic% are toconstitute t%e contract. =%e offer &ust be certain and t%eacce'tance absolute. A *ualified acce'tance constitutes acounter0offer.

Acce'tance &ade by letter or telegra& does not bind t%eofferer ece't fro& t%e ti&e it ca&e to %is /noledge. =%econtract, in suc% a case, is 'resu&ed to %ave been enteredinto in t%e 'lace %ere t%e offer as &ade. (16a)

Art. 1#2. An acce'tance &ay be e'ress or i&'lied. (n)

Art. 1#1. =%e 'erson &a/ing t%e offer &ay fi t%e ti&e, 'lace,and &anner of acce'tance, all of %ic% &ust be co&'lied it%.

Art. 1#. An offer &ade t%roug% an agent is acce'ted fro& t%eti&e acce'tance is co&&unicated to %i&. (n)

Art. 1##. An offer beco&es ineffective u'on t%e deat%, civilinterdiction, insanity, or insolvency of eit%er 'arty beforeacce'tance is conveyed.

Art. 1#5. Enless it a''ears ot%erise, businessadvertise&ents of t%ings for sale are not definite offers, but&ere invitations to &a/e an offer. (n)

Art. 1#6. Advertise&ents for bidders are si&'ly invitations to&a/e 'ro'osals, and t%e advertiser is not bound to acce't t%e%ig%est or loest bidder, unless t%e contrary a''ears. (n)

Art. 1#. =%e folloing cannot give consent to a contract:

(1) Ene&anci'ated &inors9

() ?nsane or de&ented 'ersons, and deaf0&utes %o

do not /no %o to rite. (16#a)

Art. 1#3. $ontracts entered into during a lucid interval arevalid. $ontracts agreed to in a state of drun/enness or during a%y'notic s'ell are voidable. (n)

Art. 1#4. =%e inca'acity declared in Article 1# is subject tot%e &odifications deter&ined by la, and is understood to beit%out 'rejudice to s'ecial dis*ualifications establis%ed in t%elas. (16")

Art. 1##2. A contract %ere consent is given t%roug% &ista/e,violence, inti&idation, undue influence, or fraud is voidable.

Art. 1##1. ?n order t%at &ista/e &ay invalidate consent, is%ould refer to t%e substance of t%e t%ing %ic% is t%e object oft%e contract, or to t%ose conditions %ic% %ave 'rinci'ally&oved one or bot% 'arties to enter into t%e contract.

Fista/e as to t%e identity or *ualifications of one of t%e 'artiesill vitiate consent only %en suc% identity or *ualifications%ave been t%e 'rinci'al cause of t%e contract.

A si&'le &ista/e of account s%all give rise to its correction.

Art. 1##. -%en one of t%e 'arties is unable to read, or if t%econtract is in a language not understood by %i&, and &ista/eor fraud is alleged, t%e 'erson enforcing t%e contract &uss%o t%at t%e ter&s t%ereof %ave been fully e'lained to t%efor&er. (n)

Art. 1###. =%ere is no &ista/e if t%e 'arty alleging it /ne t%edoubt, contingency or ris/ affecting t%e object of t%e contract.

Art. 1##". Futual error as to t%e legal effect of an agree&en%en t%e real 'ur'ose of t%e 'arties is frustrated, &ay vitiateconsent. (n)

Art. 1##5. =%ere is violence %en in order to rest consentserious or irresistible force is e&'loyed.

=%ere is inti&idation %en one of t%e contracting 'arties isco&'elled by a reasonable and ell0grounded fear of ani&&inent and grave evil u'on %is 'erson or 'ro'erty, or u'ont%e 'erson or 'ro'erty of %is s'ouse, descendants oascendants, to give %is consent.

=o deter&ine t%e degree of inti&idation, t%e age, se andcondition of t%e 'erson s%all be borne in &ind.

A t%reat to enforce ones clai& t%roug% co&'etent aut%ority, i

t%e clai& is just or legal, does not vitiate consent. (16a)

Art. 1##6. 8iolence or inti&idation s%all annul t%e obligationalt%oug% it &ay %ave been e&'loyed by a t%ird 'erson %o didnot ta/e 'art in t%e contract. (163)

Art. 1##. =%ere is undue influence %en a 'erson ta/esi&'ro'er advantage of %is 'oer over t%e ill of anot%erde'riving t%e latter of a reasonable freedo& of c%oice. =%efolloing circu&stances s%all be considered: t%e confidentialfa&ily, s'iritual and ot%er relations beteen t%e 'arties, or t%efact t%at t%e 'erson alleged to %ave been unduly influencedas suffering fro& &ental ea/ness, or as ignorant or infinancial distress. (n)

Art. 1##3. =%ere is fraud %en, t%roug% insidious ords o&ac%inations of one of t%e contracting 'arties, t%e ot%er isinduced to enter into a contract %ic%, it%out t%e&, %e ouldnot %ave agreed to. (164)

Art. 1##4. ailure to disclose facts, %en t%ere is a duty toreveal t%e&, as %en t%e 'arties are bound by confidentiarelations, constitutes fraud. (n)

Art. 1#"2. =%e usual eaggerations in trade, %en t%e ot%e'arty %ad an o''ortunity to /no t%e facts, are not int%e&selves fraudulent. (n)


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Art. 1#"1. A &ere e'ression of an o'inion does not signifyfraud, unless &ade by an e'ert and t%e ot%er 'arty %as reliedon t%e for&ers s'ecial /noledge. (n)

Art. 1#". Fisre'resentation by a t%ird 'erson does not vitiateconsent, unless suc% &isre'resentation %as createdsubstantial &ista/e and t%e sa&e is &utual. (n)

Art. 1#"#. Fisre'resentation &ade in good fait% is notfraudulent but &ay constitute error. (n)

Art. 1#"". ?n order t%at fraud &ay &a/e a contract voidable, its%ould be serious and s%ould not %ave been e&'loyed by bot%contracting 'arties.

?ncidental fraud only obliges t%e 'erson e&'loying it to 'ayda&ages. (12)

Art. 1#"5. i&ulation of a contract &ay be absolute or relative.=%e for&er ta/es 'lace %en t%e 'arties do not intend to bebound at all9 t%e latter, %en t%e 'arties conceal t%eir trueagree&ent. (n)

Art. 1#"6. An absolutely si&ulated or fictitious contract is void.A relative si&ulation, %en it does not 'rejudice a t%ird 'ersonand is not intended for any 'ur'ose contrary to la, &orals,good custo&s, 'ublic order or 'ublic 'olicy binds t%e 'arties tot%eir real agree&ent.

Art. #. uridical ca'acity, %ic% is t%e fitness to be t%e subjectof legal relations, is in%erent in every natural 'erson and is lostonly t%roug% deat%. $a'acity to act, %ic% is t%e 'oer to doacts it% legal effect, is ac*uired and &ay be lost. (n)

Art. #3. Finority, insanity or i&becility, t%e state of being a deaf0&ute, 'rodigality and civil interdiction are &ere restrictions onca'acity to act, and do not ee&'t t%e inca'acitated 'erson

fro& certain obligations, as %en t%e latter arise fro& %is actsor fro& 'ro'erty relations, suc% as ease&ents.(#a)

Art. #4. =%e folloing circu&stances, a&ong ot%ers, &odify orli&it ca'acity to act: age, insanity, i&becility, t%e state of beinga deaf0&ute, 'enalty, 'rodigality, fa&ily relations, alienage,absence, insolvency and trustees%i'. =%e conse*uences oft%ese circu&stances are governed in t%is $ode, ot%er codes,t%e Bules of $ourt, and in s'ecial las. $a'acity to act is notli&ited on account of religious belief or 'olitical o'inion.

A &arried o&an, tenty0one years of age or over, is *ualifiedfor all acts of civil life, ece't in cases s'ecified by la.

Art. #4. =%e folloing donations s%all be void:

(1) =%ose &ade beteen 'ersons %o ere guilty ofadultery or concubinage at t%e ti&e of t%e donation9

() =%ose &ade beteen 'ersons found guilty of t%esa&e cri&inal offense, in consideration t%ereof9

(#) =%ose &ade to a 'ublic officer or %is ife,descedants and ascendants, by reason of %is office.

?n t%e case referred to in o. 1, t%e action for declaration ofnullity &ay be broug%t by t%e s'ouse of t%e donor or donee9

and t%e guilt of t%e donor and donee &ay be 'roved by're'onderance of evidence in t%e sa&e action.

Art. 1"6. ?n t%e case of a sale by auction:

(") -%ere notice %as not been given t%at a sale by auctionis subject to a rig%t to bid on be%alf of t%e seller, it s%all not belaful for t%e seller to bid %i&self or to e&'loy or induce any'erson to bid at suc% sale on %is be%alf or for t%e auctioneer, toe&'loy or induce any 'erson to bid at suc% sale on be%alf of

t%e seller or /noingly to ta/e any bid fro& t%e seller or any'erson e&'loyed by %i&. Any sale contravening t%is rule &aybe treated as fraudulent by t%e buyer.

Art. 1"42. =%e %usband and t%e ife cannot sell 'ro'erty toeac% ot%er, ece't:

(1) -%en a se'aration of 'ro'erty as agreed u'on int%e &arriage settle&ents9 or

() -%en t%ere %as been a judicial se'aration o'ro'erty under Article 141. (1"53a)

Art. 1"41. =%e folloing 'ersons cannot ac*uire by 'urc%aseeven at a 'ublic or judicial auction, eit%er in 'erson or t%roug%t%e &ediation of anot%er:

(1) =%e guardian, t%e 'ro'erty of t%e 'erson o'ersons %o &ay be under %is guardians%i'9

() Agents, t%e 'ro'erty %ose ad&inistration or sale&ay %ave been entrusted to t%e&, unless t%e consenof t%e 'rinci'al %as been given9

(#) ecutors and ad&inistrators, t%e 'ro'erty of t%eestate under ad&inistration9

(") 7ublic officers and e&'loyees, t%e 'ro'erty of t%e

tate or of any subdivision t%ereof, or of anygovern&ent0oned or controlled cor'oration, oinstitution, t%e ad&inistration of %ic% %as beenintrusted to t%e&9 t%is 'rovision s%all a''ly to judgesand govern&ent e'erts %o, in any &anne%atsoever, ta/e 'art in t%e sale9

(5) ustices, judges, 'rosecuting attorneys, cler/s osu'erior and inferior courts, and ot%er officers ande&'loyees connected it% t%e ad&inistration o

justice, t%e 'ro'erty and rig%ts in litigation or leviedu'on an eecution before t%e court it%in %ose

jurisdiction or territory t%ey eercise t%eir res'ectivefunctions9 t%is 'ro%ibition includes t%e act of ac*uiringby assign&ent and s%all a''ly to layers, it%res'ect to t%e 'ro'erty and rig%ts %ic% &ay be t%eobject of any litigation in %ic% t%ey &ay ta/e 'art byvirtue of t%eir 'rofession.

(6) Any ot%ers s'ecially dis*ualified by la.

Art. 15##. -%ere t%e goods are of 'eris%able nature, or %eret%e seller e'ressly reserves t%e rig%t of resale in case t%ebuyer s%ould &a/e default, or %ere t%e buyer %as been indefault in t%e 'ay&ent of t%e 'rice for an unreasonable ti&ean un'aid seller %aving a rig%t of lien or %aving sto''ed t%egoods in transitu &ay resell t%e goods. @e s%all not t%ereafterbe liable to t%e original buyer u'on t%e contract of sale or for


26/34

any 'rofit &ade by suc% resale, but &ay recover fro& t%ebuyer da&ages for any loss occasioned by t%e breac% of t%econtract of sale.

-%ere a resale is &ade, as aut%ori+ed in t%is article, t%e buyerac*uires a good title as against t%e original buyer.

?t is not essential to t%e validity of resale t%at notice of anintention to resell t%e goods be given by t%e seller to t%eoriginal buyer.


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Art. 1#11. $ontracts ta/e effect only beteen t%e 'arties, t%eirassigns and %eirs, ece't in case %ere t%e rig%ts andobligations arising fro& t%e contract are not trans&issible byt%eir nature, or by sti'ulation or by 'rovision of la. =%e %eir isnot liable beyond t%e value of t%e 'ro'erty %e received fro&t%e decedent.

?f a contract s%ould contain so&e sti'ulation in favor of a t%ird'erson, %e &ay de&and its fulfill&ent 'rovided %eco&&unicated %is acce'tance to t%e obligor before its

revocation. A &ere incidental benefit or interest of a 'erson isnot sufficient. =%e contracting 'arties &ust %ave clearly anddeliberately conferred a favor u'on a t%ird 'erson.


#, $ause of t%e Obligation

$=?O #. 0 $ause of $ontracts

Art. 1#52. ?n onerous contracts t%e cause is understood to be,for eac% contracting 'arty, t%e 'restation or 'ro&ise of a t%ing

or service by t%e ot%er9 in re&uneratory ones, t%e service orbenefit %ic% is re&unerated9 and in contracts of 'urebeneficence, t%e &ere liberality of t%e benefactor. (1")

Art. 1#51. =%e 'articular &otives of t%e 'arties in entering intoa contract are different fro& t%e cause t%ereof. (n)

Art. 1#5. $ontracts it%out cause, or it% unlaful cause,'roduce no effect %atever. =%e cause is unlaful if it iscontrary to la, &orals, good custo&s, 'ublic order or 'ublic'olicy. (15a)

Art. 1#5#. =%e state&ent of a false cause in contracts s%allrender t%e& void, if it s%ould not be 'roved t%at t%ey ere

founded u'on anot%er cause %ic% is true and laful. (16)

Art. 1#5". Alt%oug% t%e cause is not stated in t%e contract, it is'resu&ed t%at it eists and is laful, unless t%e debtor 'rovest%e contrary. (1)

Art. 1#55. ce't in cases s'ecified by la, lesion orinade*uacy of cause s%all not invalidate a contract, unlesst%ere %as been fraud, &ista/e or undue influence. (n)

". Delivery

5. Due Observance of t%e 7rescribed or&alities

. or& of $ontracts

$@A7=B #OBF O $O=BA$=

Art. 1#56. $ontracts s%all be obligatory, in %atever for& t%ey&ay %ave been entered into, 'rovided all t%e essentialre*uisites for t%eir validity are 'resent. @oever, %en t%e lare*uires t%at a contract be in so&e for& in order t%at it &ay bevalid or enforceable, or t%at a contract be 'roved in a certainay, t%at re*uire&ent is absolute and indis'ensable. ?n suc%

cases, t%e rig%t of t%e 'arties stated in t%e folloing articlecannot be eercised. (13a)

Art. 1#5. ?f t%e la re*uires a docu&ent or ot%er s'ecial for&as in t%e acts and contracts enu&erated in t%e folloing articlet%e contracting 'arties &ay co&'el eac% ot%er to observe t%atfor&, once t%e contract %as been 'erfected. =%is rig%t &ay beeercised si&ultaneously it% t%e action u'on t%e contract.

Art. 1#53. =%e folloing &ust a''ear in a 'ublic docu&ent:

(1) Acts and contracts %ic% %ave for t%eir object t%ecreation, trans&ission, &odification or etinguis%&enof real rig%ts over i&&ovable 'ro'erty9 sales of rea'ro'erty or of an interest t%erein a governed by

Articles 1"2#, o. , and 1"259

() =%e cession, re'udiation or renunciation o%ereditary rig%ts or of t%ose of t%e conjuga'artners%i' of gains9

(#) =%e 'oer to ad&inister 'ro'erty, or any ot%e'oer %ic% %as for its object an act a''earing o%ic% s%ould a''ear in a 'ublic docu&ent, or s%ould

'rejudice a t%ird 'erson9

(") =%e cession of actions or rig%ts 'roceeding fro&an act a''earing in a 'ublic docu&ent.

All ot%er contracts %ere t%e a&ount involved eceeds five%undred 'esos &ust a''ear in riting, even a 'rivate one.


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destruction, or deterioration of t%e goods to a degree less t%anetraordinary diligence s%all be valid, 'rovided it be:

(1) ?n riting, signed by t%e s%i''er or oner9

() u''orted by a valuable consideration ot%er t%ant%e service rendered by t%e co&&on carrier9 and

(#) Beasonable, just and not contrary to 'ublic 'olicy.

Art. 1#. A contract of 'artners%i' is void, %eneveri&&ovable 'ro'erty is contributed t%ereto, if an inventory ofsaid 'ro'erty is not &ade, signed by t%e 'arties, and attac%edto t%e 'ublic instru&ent.

Art. 13". -%en a sale of a 'iece of land or any interestt%erein is t%roug% an agent, t%e aut%ority of t%e latter s%all bein riting9 ot%erise, t%e sale s%all be void.

Art. 1456. o interest s%all be due unless it %as been e'resslysti'ulated in riting. (155a)

Art. 1#". =%e a&ount of t%e 'rinci'al and of t%e interest s%all

be s'ecified in riting9 ot%erise, t%e contract of antic%resiss%all be void.

Act 11", ec.

b. nforceabilityArt. 1"2#. =%e folloing contracts are unenforceable, unlesst%ey are ratified:

(1) =%ose entered into in t%e na&e of anot%er 'ersonby one %o %as been given no aut%ority or legalre'resentation, or %o %as acted beyond %is 'oers9

() =%ose t%at do not co&'ly it% t%e tatute ofrauds as set fort% in t%is nu&ber. ?n t%e folloingcases an agree&ent %ereafter &ade s%all be

unenforceable by action, unless t%e sa&e, or so&enote or &e&orandu&, t%ereof, be in riting, andsubscribed by t%e 'arty c%arged, or by %is agent9evidence, t%erefore, of t%e agree&ent cannot bereceived it%out t%e riting, or a secondary evidenceof its contents:

(a) An agree&ent t%at by its ter&s is not tobe 'erfor&ed it%in a year fro& t%e &a/ingt%ereof9

(b) A s'ecial 'ro&ise to anser for t%e debt,default, or &iscarriage of anot%er9

(c) An agree&ent &ade in consideration of&arriage, ot%er t%an a &utual 'ro&ise to&arry9

(d) An agree&ent for t%e sale of goods,c%attels or t%ings in action, at a 'rice not lesst%an five %undred 'esos, unless t%e buyeracce't and receive 'art of suc% goods andc%attels, or t%e evidences, or so&e of t%e&,of suc% t%ings in action or 'ay at t%e ti&eso&e 'art of t%e 'urc%ase &oney9 but %ena sale is &ade by auction and entry is &adeby t%e auctioneer in %is sales boo/, at t%e

ti&e of t%e sale, of t%e a&ount and /ind of'ro'erty sold, ter&s of sale, 'rice, na&es oft%e 'urc%asers and 'erson on %oseaccount t%e sale is &ade, it is a sufficien&e&orandu&9

(e) An agree&ent of t%e leasing for a longer'eriod t%an one year, or for t%e sale of rea'ro'erty or of an interest t%erein9

(f) A re'resentation as to t%e credit of a t%ird'erson.

(#) =%ose %ere bot% 'arties are inca'able of giving consent toa contract.

Art. 133. 'ecial 'oers of attorney are necessary in t%efolloing cases:

(1) =o &a/e suc% 'ay&ents as are not usuallyconsidered as acts of ad&inistration9

() =o effect novations %ic% 'ut an end to obligationsalready in eistence at t%e ti&e t%e agency asconstituted9

(#) =o co&'ro&ise, to sub&it *uestions to arbitrationto renounce t%e rig%t to a''eal fro& a judg&ent, toaive objections to t%e venue of an action or toabandon a 'rescri'tion already ac*uired9

(") =o aive any obligation gratuitously9

(5) =o enter into any contract by %ic% t%e oners%i'of an i&&ovable is trans&itted or ac*uired

codal provisions in civ 2 course outline

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