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Course Syllabus in Obligations and Contracts PDF
Course Syllabus in Obligations and Contracts PDF
I. PRESCRIPTION
Articles 1106-1155
1. Significant application of extinctive prescription
2. How to set up the defense of prescription
3. Doctrine of Laches
4. Acquisitive prescription
5. Distinction between prescription and laches
6. Interruption of prescriptive period
7. Actions which do not prescribe
Cases: Mapa III vs. Guanzon, 77 SCRA; Nelson and Co., vs Lepanto Mining,
Co, vs 18 SCRA 1040; Agra, et al., v. PNB. G.R. No. 133317, June 29, 1999;
Cruz v. CA., February 18, 1991; PLDT v. Pingol, G.R. No. 182622, Sept. 8,
2010; Lourdes Suites v. Binarao, G.R. No. 204729, August 06, 2014; China
Banking Corp., v. Commissioner of Internal Revenue, G.R. No. 172509,
February 4, 2015
II. OBLIGATIONS:
A. General Provisions (Articles 1156 to 1162)
1. Concept, Requisites, Classification of Obligations
2. Sources of Obligations
a. Obligations arising from law
b. Obligations arising from Contracts
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Cases: Samson vs CA, 238 SCRA 397; Nakpil vs CA, 144 Scra 596; Sia vs CA,
222SCRA 24; Adorable vs CA, 319 SCRA 2000; Fideldia, et al., v. Soncuan, et
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al., G.R. No. 151352, August 29, 2005; Jose et al., v. Novida et al., G.R. No.
177374, July 02, 2014; CCC Insurance Corp. v. Kawasaki Steel Corp.,et al., G.
R. No. 15616, June 22, 2015;
In obligations to give
In obligations to do
In obligations not to do
Cases: Garcia vs CA, 167 SCRA 815; Insular Bank of Asia and America vs. Sps.
Salazar, 159, SCRA, 111; Umali vs Miclat, 105 Phil. 1109)
D. Extinguishment of Obligations
General provisions
Modes of extinguishing obligations
1. Payment or performance
Concept
When obligation is paid or performed
Who may pay obligation
aa. Payment by a third person
Right of creditor
Right of third person
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Right of reimbursement
Right of subrogation
Gratuitous payments
bb. Capacity to make payment
cc. To whom payment must be made
Persons authorized to receive payment
Payment to unauthorized persons
Exceptions
Payment to incapacitated persons
Payment to third persons
Payment to possessors of credit
Payment after judicial order of retention 1243
dd. What must be paid 1246
Effect of dation in payment
Effect is object is generic
ee.Expenses of payment 1247
ff. Character of payment
gg. Rule in monetary obligations 1249
Effect of R.A. Nos. 529 and 4100
Meaning of legal tender
Payments with negotiable paper
hh. Effect of extra ordinary inflation and deflation
ii. Place of payment.
Exception
b. Effect of loss in generic obligation to give (1263)
Effect of partial loss (1264)
c. Rule if things is in debtors possession (1265)
d. Effect of impossibility of performance in obligation (1266)
Effect
Effect in obligations to do
e. Effect of relative impossibility (1267)
f. Rule if obligations arises from criminal offense (1268)
g. Effect of extinguishment of obligations
Case: Naga Telephone Co., et al. vs CA, et al., Feb. 24, 1994
III. CONTRACTS
Elements
Stages
Classification
Auto Contracts
Contracts of Adhesion
b. Freedom to Contract (1306)
Validity of stipulations
Limitations on stipulations
c. Innominate Contracts (1307)
Analogous contracts
d. Mutuality of Contracts (1308)
Unilateral cancellation
Express agreement
e. Relativity of contracts (1311)
Parties bound by contract
Third persons not bound
Enforcement of contract
Annulment of contracts
Contracts bind heirs
Stipulations for third persons
Who may revoke
Collective contracts
f. Real rights in property (1312)
g. Contracts in fraud of creditors (1313)
h. Interference by third persons (1314)
Extent of liability
i. Perfection of consensual contracts (1315)
Binding effect of contract
j. Perfection of real contracts (1316)
k. Ratification necessary (1317)
Express or implied
Effect retroactive
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CONSENT
b. Concept of consent (1319)
Elements
Forms of consent
Manifestation of consent
Offer by one party (definite, complete, international, mental)
Acceptance by offeree
Amplified acceptance
Complex offers
Simultaneous offers
Successive agreements
Knowledge of offeror (Through intermediaries, by
correspondence, by telephone)
Effect of silence
Withdrawal of offer
Lapse of time
Revocation of acceptance
New contract before acceptance
Public offers
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Nature of contract
Principal conditions
Accidental, accessory conditions
Effect of intent
Error as to person
Solvency of the party
Motive of the party
Error as to account
Account and quantity
Correction of account
Eror as to absis of contract
Error as to estimates
Error in unilateral decision
Liability for error
n. Fraud or mistake alleged (1332)
o. Inexcusable error (1333)
p. Error of law (1334)
Legal effects of contracts
Error as to the nature of contract
q. Violence and intimidation distinguished (1335)
Scope and test
Requisites of violence
Requisites of intimidation
Unjust act
Enforcement of claim
When improper
Serious evil or wrong
Imminence of evil
Object of evil
Nature of injury
Reasonable fear
Respect and obedience
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Cause of consent
Moral coercion
r. Duress by third person (1336)
s. Undue influence (1337)
Circumstances to be considered
Employed by third persons
Contracts of adhesion
t. Concept of fraud (1338)
Insidious words and machinations
Kinds of fraud
Compared with error
Requisites of fraud
Effects of fraud
Proof of fraud
u. Concealment of fraud (1339)
Innocent non-disclosures
v. Tolerated fraud (1340)
Opportunity to know
w. Expression of opinion (1341)
Made by expert
x. Fraud by third person (1342)
Mutual error
Compared with violence
y. Magnitude of fraud (1343)
Determining cause
Fraud by one party on another
Mutual fraud
Plurality of subjects
Dolo incidente
z. Definition of simulation (1345)
Absolute simulation
Relative simulation
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Cases: ABS-CBN vs CA et al., 301 SCRA 572; Palattao vs. CA, et al., G.R. No.
131726, May 7, 2002; National Commercial Bank of Saudi Arabia vs. CA,
G.R. No. 1242467, January 17, 2005; DBP vs Perez, G.R. No. 14854, Nov.
11,. 2004; Sanchez, vs Rigos, 45 SCRA 368; Mercado and Mercado vs.
espiritu, 37 Phil. 125; Braganza vs Villa Abrille, 105 Phil 456; Songco vs
Sellner, 37 Phil. 254; Rosario, et al. v. CA, et al., G.R. No. 127005, July 19,
1999; Lee and Asiatrust Development Bank v. Bangkok Bank Public Co., G.R.
No. 173349, February 09, 2011;
Philtranco Service Enterprises, Inc., v. Paras and Inland Railways, Inc., et
al., G.R. No. 161909, April 25, 2012; Paz v. Environmental Universality. Inc.,
G.R. No. 203993, April 20, 2015;
OBJECTS OF CONTRACTS
a. Concept of object
Requisites
Within commerce of man (1347)
Existence of object
Future inheritance
Not part of inheritance
Contrary to law or morals
Prestation of third party
b. Impossible things or services (1348)
Liability for damages
Partly impossible
Difficulty of performance
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B. Form of Contracts
a. Intent over form (1356)
Contracts valid in any form
Formalities required by law
For validity of contract
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Execution of instrument
b. Compliance with formality (1357)
Causes of action
Survival of actions
c. Writing not for validity (1358)
Case: Dauden-Hernaez vs Delos Angeles, 27 SCRA 1276;
C. Reformation of Instruments
a. Basis of reformation (1359)
Requisites of reformation
Distinguished from annulment
Operation and effect
Effect on statutes of frauds
b. Requisites of mistake (1361)
Mistake of fact
Must be mutual
Effect of negligence
c. Mistake of one party (1362)
d. Mistake of draftsman (1363, 1364)
e. Deed held to be mortgage (1365)
f. Donations and wills (1366)
g. Void agreements (1367)
Cases: Huibonhua vs COA, 320 SCRA 625; Bentir and Formida vs Judge
Leanda and Leyte Gulf Traders, Inc., G.R. No. 128991, April 12, 2000; Rita
Sarming, et al., vs Dy, et al., G.R. No. 133643, June 6, 2002;
D. Interpretation of Contracts
a. Interpretation of terms (1370)
Intent of the parties
Proof of intention
Reformation of instruments
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E. Rescissible Contracts
a. Defective contracts
Relative ineffectiveness
Concept of rescission (1380)
Nature of contract
Rescission in reciprocal obligations
Rescission and mutual dissent
Requisites of rescission
Direct proceedings to rescind
b. Rescission on legal grounds 91381)
Contracts with lesion
Contracts of guardians
Contracts for absentees
Contracts in fraud of creditors
Action pauliana and simulation
Requisites for rescission
Existence of credit
Priority of credit
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Exception
Creditors included
Fraudulent conveyance
Test of fraud
Signs of fraud
As to transferee
c. Payment when insolvent (1382)
d. No other remedy (1383)
e. Extent of rescission (1384)
Who may bring action
f. Mutual restitution (1385)
Transfer to third person
Right of transferee
Transferee in good faith
Transferee in bad faith
Right to damages
g. Fraud presumed (1387)
Rebuttal of presumption
Proof of fraud
Effect of fraud
h. Subsequent transfers (1388)
Bad faith of transferee
i. Minority of party (1389)
Cases: Rosencor development Corporation and Rene Joaquin vs Paterno
Inquing, et al., G.R. No. 140479, March 8, 2001; Khe Hong Cheng vs CA, G.R.
No. 144169, March 28, 2001; Guzman, Bocaling and Co., Inc. vs Bonnevie,
206 SCRA 668; Concepcion vs Sta Anna, 87 Phil.787; Rivera vs. Li Tam and
Co., 4 SCRA 1072;
Oria vs MacMicking, 21 Phil. 243
F. VOIDABLE CONTRACTS
a. Concept
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G. UNENFORCEABLE CONTRACTS
a. Concept and distinctions
b. Unauthorized contracts (1403)
Statute of frauds
Purpose of statute
Validity of contracts
Action to enforce
Note or memorandum
Performance within one year
Guaranty of anothers debt
Test of guaranty
In consideration of marriage
Sale of personalty
Separable contracts
Partial delivery or payment
Lease or sale of realty
Description of property
Representation as to credit
Parties incapacitated
c. Ratification validates contracts (1404)
d. Failure to object (1405)
Acceptance of benefits
e. Defense is personal (1408)
Cases: Rosencor Development Corp. vs Inquing, 354 SCRA 119; Factoran vs
Sabanal, 81 Phil. 512; Diana vs Macalibo, 75 Phil. 71; Western Minadanao
Lumber Co., vs Medalla, 79 SCRA 702; Shoemaker vs La Tondena, 68 Phil
24;
Parties affected
Action on contract
Ratification
b. Defect incurable (1410)
Nature of action
c. Illegality common to parties (1411,1412)
Only one party guilty
Cases of usury
d. Recovery of usurious interest (1413)
e. Repudiation of illegal contracts (1414)
f. Divisible or separable contracts (1420)
Nature of contracts
Intention of parties
g. Nullity as defense (1421)
Cases: Liguez, vs CA, 102 Phil. 577; Mapalo vs Mapalo, 17 SCRA 114;
Rodriguez vs Rodriguez, 20 SCRA 908; Angel Jose Warehousing Co., vs
Chelda Enterprises, 23 SCRA 119; Development Bank of the Phil. Vs Perez,
G.R. No. 148541, Nov. 11, 2004; Phil. Banking Corp., vs Lui She, 21 SCRA 52
I. NATURAL OBLIGATIONS
a. Basis of natural obligations
b. Types of obligations (1423)
Concept of natural obligations
Natural and imperfect
Natural and moral
Fulfillment of natural obligations
Voluntary fulfillment
Conversion to civil obligation
Guaranty of natural obligations
Illicit obligations
c. Restitution by minor (1426)
Payment by minor
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J. ESTOPPEL
a. Principle of estoppels (1431)
Concept of estoppels
Illegal act excluded
Distinguished from waiver
Distinguished from ratification
Representations and positive acts
Admissions
Silence or inaction
Nature of laches
Laches and prescription distinguished
Reliance and belief
b. Effect of provision (1432)
c. Kinds of estoppels (1433)
Elements of estoppels in pais
d. Subsequent acquisition of title (1434)
e. Estoppels of tenant (1435, 1436)
f. Estoppels against owner (1437)
g. Estoppels from benefits (1438)
h. Parties affected (1439)
No estoppel against government
Cases: Maneclang vs Buan, 208 SCRA 179; Heirs of Lacamen vs Heirs of
Laruan, 65 SCRA 605; Nielson & Co., Inc., vs lepanto Consolidated Mining
Co., 18 SCRA 1040; pnb VS Barreto, 52 Phil 818
K. TRUSTS
a. Characteristics of trusts
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IMPLIED TRUST
a. Trust from payment (1447, 1448)
Exceptions to rule
b. Inheritance in trust (1449-1451)
c. Title in one co-owner (1452)
d. Trust based on promise (1453)
e. Investment of trust funds (1454-1545)
Acquisition of trust property
f. Mutual mistake (1456)
Unilateral mistake