Object of the contracts

Art. 1347. All things which are not outside the commerce
of men, including future things, may be the object of a contract.
All rights which are not intransmissible may also be the
object of contracts.
No contract may be entered into upon future inheritance
except in cases expressly authorized by law.
All services which are not contrary to law, morals, good
customs, public order or public policy may likewise be the
object of a contract.

Requisites of object of contracts:

1. things or service must be within the commerce of man-outside of commerce of man
yung mga public property, personal rights, public offices, political rights, di
pwede ibenta. hangin, dagat etc.
2.it must be transmissible- the right to vote is intransmissible- di sila pwede
maging object ng contract.
3. it must not be contrary to law, morals, good customs, public order, or public
policy.

Future inheretance:
GENERAL RULE: it cannot be an object of contract
Exception: When expresslly allowed by law.
Example; in case of marriage settlement.

pag yung parents mo buhay pa, di mo pwede ibenta yung iyong mamanahin. BUT NOTE,
inheritance ceases to be future upon the death of the decedent. Kahit pa di nyo pa
nadidivide or nadedetermine yung sayo pwede na maging object ng contract.

Art. 1348. Impossible things or services cannot be the

object of contracts
Isa rin sa mga requisites para sa object of contracts.
impossible either physically or legally.

Physical impossibility pwedeng absolute and relative

absolute: no one can do it talaga, kahit sino.
Relative: Pwede sa ibang circumstance and hindi pwede sa iba.

Art. 1349. The object of every contract must be determinate

as to its kind. The fact that the quantity is not determinate
shall not be obstacle to the existence of the contract,
provided it is possible to determine the same, without the
need of a new contract between the parties.

object must be determinante or at least determinable- without the need of a new

contract kasi pag need pa ng new agreement to determine the object then it is an
indeterminate object. - contract is void.
Why?
Because in order to have a valid contract, the 3 essential requisites is required-
as if walang object. kulang ng essential requisites no valid contract then it is
void.

example:
Pogi promise ganda to deliver one of his car- determinable without the need of a
new contract
pogi promise to deliver a thing- indeterminable- contract is void- not determinate
as to its kind nor it is determinable without the need of contract.
Pogi promise ganda to deliver his dec 2020 harvest- determinable- although di natin
alam kung ilan ang mahaharvest.

CAUSE OF CONTRACT
Art. 1350. In onerous contracts the cause is understood
to be, for each contracting party, the prestation or promise
of a thing or service by the other; in remuneratory ones, the
service or benefi t which is remunerated; and in contracts of
pure beneficence, the mere liberality of the benefactor.

ito yung reason bakit mo iaassume yung contract na yan.

Onerous contracts- cause is the prestation or pomise of a thing or service by the
other- reciprocally obligated to each other (contract of sale)

Remuneratory- the service or benefit which is
service or benefit na narender- to reward the
ex:
pogi render his service as defense counsel to
of 100k- yung object is yung 100k- yung cause
a defense counsel.
remunerated- contract for the past
service previously rendered
ganda, ganda need to pay pogi amount
is yung services ni pogi kay ganda as

Pure benificence- the mere liberality of the benefactor

donation is an example- liberality ng giver ang cause ng contract

Art. 1351. The particular motives of the parties in entering

into a contract are different from the cause thereof.

iba ang motive at cause ng contract

motive is purely personal or private sa isang party
ex:
if pogi buys gun worth 100k dahil gusto nya barilin si ganda
cause of the contract is yung gun, and yung pera is yung cause ng seller, motive is
to kill ganda.

motive vs cause
1. motive may vary while cause is always the same. motive pwedeng iba-iba.
2. illegal cause makes the contract void, but illegal motive does not necessary
render the contract void.

Art. 1352. Contracts without cause, or with unlawful

cause, produce no effect whatsoever. The cause is unlawful
if it is contrary to law, morals, good customs, public order or
public policy.

Requisites for a cause: (pag walang cause contract is void)

1. must be present- kung wala edi kulang ang essential requisites ng contract
2. it must be true- dapat totoo di false
3. must be lawful- not contrary to laws, morals,etc

Art. 1353. The statement of a false cause in contracts shall

render them void, if it should not be proved that they were
founded upon another cause which is true and lawful.

effect of a false cause

contract magiging void pag di naprove ng parties that it is founded upon another
cause which is true and lawful.
if the parties can show that there is another cause- prove na true and lawful. if
di mprove dahil founded in a false cause then the contract is void.
example:
pogi and ganda executed a contract of sale of pogi's car for 100k. When in truth,
ganda did not pay any amount just to defraud the creditors of pogi baka kasi
iattach yung car nya.
since wala naman talagang bayad, cause is false- there is really no contract of
sale.

however, if is ganda nakapag render ng service kay pogi equivalent to 100k- for
that reason kaya nag execute ng deed of sale ng car si pogi kay ganda. although
nakalagay is nagbayad si ganda ng 100k- yung nakasaad sa cause ng contract is false
however there is another cause which is actually true and lawful cause ng kanilang
contract- this contract of sale then is valid.

Art. 1354. Although the cause is not stated in the contract,

it is presumed that it exists and is lawful, unless the debtor
proves the contrary

cause presumed to exist and lawful

not necessary nakalagay sa kontrata yung cause- pinepresume sya ng batas
but then presumption lang pwede pa rin iprove otherwise na nakasaad na cause is
unlawful
necessary that the cause must exist- but it is not necessary that the cause be
state in a contract. - because it is presumed that the cause exist and it is
lawful.

example:
in a promissory note, "fifteen days after date, I promise to pay pogi or order the
amount of 10K" signed by ganda.
promissory note did not state that ganda promised to pay pogi 10k because ganda did
not receive anything from pogi
is the promissory note valid if it did not state the cause received by ganda from
pogi
YES. the law presumes even if the cause is not stated it exist and at the same time
it is lawful.

Art. 1355. Except in cases specified by law, lesion or inadequacy

of cause shall not invalidate a contract, unless there
has been fraud, mistake or undue infl uence.
GENERAL RULE; inadequacy of price does not invalidate a contract di porket
napakamura ibinenta
EXCEPTION:
pag may fraud mistake or undue influence,
contract is not valid

example;
pogi sold his million worth house and lot to ganda for only 100k in favor of ganda.
meron inadequacy of price- contract of sale here is valid- sabi ni art 1355
pero if it can be proved that kaya binenta ni pogi sa ganong mura dahil sa mistake
or may undue influence or it was done through fraud, then it this case the contract
of sale can be annulled in court.

NOTES: April 19, 2023

Badly needed money, ms a went to 2 prospective creditors y and w. he was able to

borrow money from y, with 8 percent interest payable in 3 years. the contract
between ms x and y provides that the security given by way of mortgage 5 m market
value will belong to mr y in case ms x fails to pay on due date. and that property
will be considered the equivalent value of ms x obli of 3 million, and the agreed
interst nd expenses of contract. also able to borrow 3m from w, agreed ms x will
pay likewise 3 years, and agreed secuirty by way of mortgage will be used by ms x
to paythe obligation if ms x fail to do so on due date. that property has 7 m
market value. If using theproperty, x will no longer pay any amount to w. the
security given to y is agricultural, w is residential. if onndue date both
obligation will not be paid, what will be the status of the agreement, and what
rights
status of agreement
both agreement are valid and enforceable
pactum commissiorium
rights of creditors

H and w are husband and wife, and they decided, to call there sons in there
conferece and they have agreed, that tha parents will donate the ancestral house to
their nanny dedicated service for the 40 years. there being no objections, parents
cvalled nanny, and told beginnung tdoday the house and lot belonhs to nany stay
until parents die. later, MR h. met ms a, beautiful woman, only 16 yrs old, because
of the attraction h in order to woo the woman h gave several properties to a.
accepted by a. also h, gave exlcusive properties to his brother who supported him
during his education, wthout the knowledge of his wife w. later, h died and w
demanded return from a and his brother, but before getting this properties w died,
the spouses of the children demanded from nanny the return from the h and l

who will be entitled to the properties mentioned

ancestral-assuming public document- yes nany, assuming that it is not done through
public document.

ms a properties no rights no consent from the w the wife

brother received exclusive properties of h, even without the knowledge of w still
valid

what will be the status of the contract made

ancestral-
public document nany, no public document heirs
ms a property

not valid, heirs no consent from wife

brother of h

exclusive properties of h then b and done through public document

valid

FORM OF CONTRACTS
Art. 1356. Contracts shall be obligatory, in whatever form
they may have been entered into, provided all the essential
requisites for their validity are present. However, when the
law requires that a contract be in some form in order that it
may be valid or enforceable, or that a contract be proved in a
certain way, that requirement is absolute and indispensable.
In such cases, the rights of the parties stated in the following
article cannot be exercised.

GENERALLY,form is not required in order for the contract to be valid and obligatory
as long as present ang consent, subject matter, and cause.
HOWEVER, when the law requires that a contract be in some form in order to be valid
or enforceable, REQUIREMENT IS ABSOLUTE AND INDISPENSIBLE.
Pag nag require ang batas ng specifc form, indispensible ito at absolute.

KAILANG BA NEED NG FORM SA CONTRACT (THREE EXCEPTIONS to the general rule that form
is not needed)
form is needed or important for:
1. Validity- as in the case of a donation of real property which needs a public
instrument
2.enforcrability- under the statute of frauds- requirement may be waived by
acceptance of benefits (partial) or by failure to object to the presenatation of
oral evidence.
3. convenience- against a third person

oral contracts are valid an enforceable- our civil law system upholds the spirit
and intent of the parties over formalities.
as betweem the parties, oral agreement is valid, however for purposes of
convenience- in order to affect third parties in any transaction, must be in public
instrument.
Validity
Example: solemn contracts (Some examples, not exclusive)
1. Donation of real property- must be in public instrument in order to be valid
2. donation of personal property if the value exceeds 5k- in writing
3. sale of land through an agent- authority of agent must be in writing
4. stipulation to pay interest- interest must be in writing

Art. 1357. If the law requires a document or other special

form, as in the acts and contracts enumerated in the following
article, the contracting parties may compel each other to
observe that form, once the contract has been perfected. This
right may be exercised simultaneously with the action upon
the contract.

Speaks about the right to compel the other party to execute the necessary form
NOTE; this is only applicable for contracts wherein yung form is needed only for
convenience-
dito perfected na yung contract- problema lang dito is for convenience-the one
party can compel the other party to execute kung ano mang form ang needed.
this provision presupposes that the contract is valid and enforceable

exmple:
pogi donated his land to ganda in a private instrument
ganda accepted the donation in the same private instrument
registration requires that the donation be in public instrument-nagrequest si ganda
na ilagay sa public instrument tapos itong si pogi ayaw na.
Ganda filed a case against pogi to observe the necessary form.

Can pogi be compelled to execute the necessary document?

NO. pogi cannot be compelled. Donation needs to be in public document in order to
be valid. Donation is not valid.

example 2:
pogi sold his land to ganda in a private instrument
registration requires that the sale be in public instrument

pogi can be compelled because the sale of land is valid and enforceable- para
maregister ni ganda ang sale.

Art. 1358. The following must appear in a public document:

(1) Acts and contracts which have for their object the
creation, transmission, modifi cation or extinguishment of real
rights over immovable property; sales of real property or of
an interest therein are governed by Articles 1403, No. 2, and
1405;
(2) The cession, repudiation or renunciation of hereditary
rights or of those of the conjugal partnership of gains;
(3) The power to administer property, or any other
power which has for its object an act appearing or which
should appear in a public document, or should prejudice a
third person;
(4) The cession of actions or rights proceeding from an
act appearing in a public document.
All other contracts where the amount involved exceeds
fi ve hundred pesos must appear in writing, even a private one.
But sales of goods, chattels or things in action are governed
by Articles 1403, No. 2 and 1405.

(this provision is for convenience, di pa rin for validity or enforceability)

first par:
acts or contracts regarding real rights over immovable parties, the parties need to
execute the necessary form
second par:
example:
pogi and ganda heirs of their father, since si pogi stable na and nakikita nyang
naghihirap si ganda, nirenounce nya yung share nya from their father- for convenice
the renunciation must appear in public instrument
Third par:
example:
pogi appointed ganda to administer his property while he is in vacation-
the authority of ganda to administer the property of pogi needed to be in public
document
fourth par:
pogi mortgage his land in favor of ganda para masecure-
the cession of ganda's rights must also be in public document
last par:
all other contracts where the amount involved exceeds 5 hundred pesos must appear
in writing- for convenience lang to hindi sya for validity or enforceability-
bakit need for convenience- for convenience of the contracting parties and making
it effective against third persons.

REFORMATION OF CONTRACTS
Art. 1359. When, there having been a meeting of the
minds of the parties to a contract, their true intention is
not expressed in the instrument purporting to embody the
agreement, by reason of mistake, fraud, inequitable conduct
or accident, one of the parties may ask for the reformation
of the instrument to the end that such true intention may be
expressed.
If mistake, fraud, inequitable conduct, or accident has
prevented a meeting of the minds of the parties, the proper
remedy is not reformation of the instrument but annulment
of the contract.

reformation is a remedy-if ever may mistake, fraud, inequitable conduct or accident

reformation vs annullment

first par
reformation
dito may meeting of minds, yun nga lang ang nakasulat sa contract nila ay di yung
napagkasunduan nila.
example:
pogi and ganda agreed for selling price of 800k- however nakasulat sa deed of sale
nila is 1M- dito ang remedy is reformation kasi may meeting of minds naman- kaso
yung nakasulat sa contract does not reflect their true intentions
REQUISITE
1. there must be a meeting of minds
2. true intention is not expressed in the written instrument
3. the failure of intention is due to mistake, fraud, inequitable conduct or
accident
4. there must be clear and convincing proof.
TAKE NOTE: action to file for reformation need to be filed within 10 years.
available lang to pag may written contract- what is reform is not the contract
itself, what is reform is the written instrument hindi yung contract mismo.
second par
wala talagang meeting of minds- consent is vitiated.
annullment
pogi sells his car for 1M, tas akala ni naganda 800k. Nakasulat sa contract 1M. di
naman talaga sila nagkasundo so walang meeting of minds- the remedy is annullment.

Art. 1360. The principles of the general law on the reformation

of instruments are hereby adopted insofar as they are
not in conflict with the provisions of this Code.
yung general law on reformation- inaadapt din natin- yung general law on
reformation- in case of conflict- magogovern ang civil code.

Art. 1361. When a mutual mistake of the parties causes

the failure of the instrument to disclose their real agreement,
said instrument may be reformed.

situations when there is mutual mistake.

example:
poghi sold his car 1 to ganda. bat yung sa written agreement ang nabenta ay yung
car 2, ang nasulat is yung car 2 due to their mutual mistake
either of the parties may file for reformation

Art. 1362. If one party was mistaken and the other acted
fraudulently or inequitably in such a way that the instrument
does not show their true intention, the former may ask for
the reformation of the instrument.

example;
pogi borrowed money from ganda worth 1M.
written instrument provides that pogi was selling his car for 1M due to the
fraudulent act of ganda. yung pinapirmahan ni ganda is contract of sale acted
fraudulently.

SINO sa kanilang dalawa pwwede mag file ng action for reformation of instrument
Only pogi may ask for the reformation of the instrument- di kasama yung person
acted fraudulently

Art. 1363. When one party was mistaken and the other
knew or believed that the instrument did not state their real
agreement, but concealed that fact from the former, the instrument
may be reformed.

yung isang party committed a mistake (unilateral) other party is guilty of

concealment di nya sinabi- only party in good faith may ask for reformation

Art. 1364. When through the ignorance, lack of skill,

negligence or bad faith on the part of the person drafting the
instrument or of the clerk or typist, the instrument does not
express the true intention of the parties, the courts may order
that the instrument be reformed.

failute to convey the true intent

ground is
ignorance, lack of skill, negligence, bad faith on the part of the person drafting
the instrument or of the cleaark or typist
the instrument may be reformed.

Art. 1365. If two parties agree upon the mortgage or

pledge of real or personal property, but the instrument states
that the property is sold absolutely or with a right of repurchase,
reformation of the instrument is proper.
dito nag execute sila ng pledge or mortgage tas yung instrument states for a sale-
can be reformed.

example:
pogi mortgage his land in favor of ganda to secure his loan. both parties agreed.
however their instrument drafted is an absolute sale- binebenta angblupa instead of
instrument- instrument may be reformed otherwise the intention of the parties may
be frustrated.

Art. 1366. There shall be no reformation in the following

cases:
(1) Simple donations inter vivos wherein no condition
is imposed;
(2) Will;
(3) When the real agreement is void.

simple donations - walang mga conditions unless may condition ang true intention.
will- strictly personally di talaga meeting of minds- ikaw magdedecide kanino
ibibgay
real agreement is void- useless na ipapareform e void na yung contract

Art. 1367. When one of the parties has brought an action

to enforce the instrument he cannot subsequently ask for its
reformation.

first nag file ka ng enforcement, nag dedemand ng compliance, later on hindi ka na

allowed mag file ng reformation stating na yung instrument na yun di nag rerefledct
ng totoong agreement between contracting parties. grounds here is estoppel- u are
now estopped kasi ineenforce mo tas gusto mo ireform.

exmple:
pogi sold his lnd in favor of ganda
written instrument provides for a contract of mortgage due to the fraudulent act of
pogi. ganda believing it was a contract of sale.
ganda therefore has the right to bring an action for reformation.
pero if ever ang ginawa ni ganda is to foreclosed the mortgage, later on she can no
longer file for reformation cause she already filed for enforcing it. estopped na
sya.

Art. 1368. Reformation may be ordered at the instance of

either party or his successors in interest, if the mistake was
mutual; otherwise, upon petition of the injured party, or his
heirs and assigns.
pag may mutual kahit sino pwede mag file for reformation
pag isang party ang nag commit ng mistake or fraud, si injured party lang pwede mag
file.

same with the example from the past provision, if ever namatay si ganda, pwede mag
file ang heirs ni ganda or kung may assignees sya pero si pogi di pwede mag file
including yung mga anak nya.

Art. 1369. The procedure for the reformation of instruments

shall be governed by Rules of Court to be promulgated
by the Supreme Court.

INTERPRETATION OF CONTRACTS

Art. 1370. If the terms of a contract are clear and leave

no doubt upon the intention of the contracting parties, the
literal meaning of its stipulations shall control.
If the words appear to be contrary to the evident inten
tion
of the parties, the latter shall prevail over the former.

Interpreation is the act of maing inbtelligible that was not before understood,
ambigious, or not ambigious- tinitgnan talaga kung yung intention ay nakasulat
talaga sa written of contracts.
concern sa pag aanalyze ng written instrument.
real intention of the parties prevails over the words that appear in the written
instrument
pero if very literal ang written instrument- dapat straight forward
pag komplikado ang contract may tendency na magkaron ng several interpretation

Art. 1371. In order to judge the intention of the contract

ing parties, their contemporaneous and subsequent acts shall
be principally considered.

in judging the intention, tinitignan di yung subsequent acts of aprties are

considered-

Art. 1372. However general the terms of a contract may

be, they shall be understood to comprehend things that are
distinct and cases that are different from those upon which
the parties intended to agree.
general term usage, is not necessarily general di pwede pilosopuhin- intention must
be considered as well
example
s sold to be his house including "all" furniture- general term
in interpreting this, di ibig sabihin di lahat- pano may mga furnitures na di naman
pagmamayari ni owner-
"all' not necessarily all furnitures talaga-

Art. 1373. If some stipulation of any contract should admit

of several meanings, it shall be understood as bearing that
import which is most adequate to render it effectual.

misunderstanding or ambiguity sa contract

paano magiging valid?
ex; sa objects:
s sold to b his race horse named tom. incidently there are two horses with the name
tom. however one of them is amputated.
para maging valid to- intention talaga is pangkarera so yung horse na di pilay
dapat.

Art. 1374. The various stipulations of a contract shall be

interpreted together, attributing to the doubtful ones that
sense which may result from all of them taken jointly.
example:
x pinaupa bahay kay y, x is forbid subleasing the property. if y sublease it to
third person, there will be additional 1K per month payment on top of his rent.
pag yung last sentence lang binasa- pwede nya isublease- mali interpretation
pagh binasa yung buo- bawal talaga ang sublease- yung 1k is not additional payment
but a form of penalty.

Art. 1375. Words which may have different signifi cations

shall be understood in that which is most in keeping with the
nature and object of the contract
example;
R leased to E a roof for the purpose of erecting an advertising sign. the contract
provides for the termination of the lease by E if a building should be constructed
on an adjoining property of such height as to obscure the view of E's sign. There
was erected on the roof of an adjoining building a sign which obstructed the view
of E's sign.
the word "building' is not literally building talaga - ang purpose kasi ng contract
is iadvertise kung ano nakasulat dun- this word building will also be construed dun
sa sign na nagtakip sa advertisement- if ever ipapa terminate nya ang contract of
lease may ebidensya sya.

Art. 1376. The usage or custom of the place shall be borne

in mind in the interpretation of the ambiguities of a contract,
and shall fi ll the omission of stipulations which are ordinarily
established.

s sold to b a horse. it was the customs of the place to place horse shoe on sold
horses.
even if the contract does not mentioned- that the seller should put horse shoe,
kailangan nya maglagay kasi yun yung custom of the place.

Art. 1377. The interpretation of obscure words or stipula

tions in a contract shall not favor the party who caused the
obscurity.
pag ininterpret ang contract di dapat in favor sa party whp causedt the obscurity

Art. 1378. When it is absolutely impossible to settle

doubts by the rules established in the preceding articles, and
the doubts refer to incidental circumstances of a gratuitous
contract, the least transmission of rights and interests shall
prevail. If the contract is onerous, the doubt shall be settled
in favor of the greatest reciprocity of interests.
If the doubts are cast upon the principal object of the
contract in such a way that it cannot be known what may have
been the intention or will of the parties, the contract shall be
null and void.

pag gratitiuous:
ang interpretation natin is the least transmission of rigths and interests shall
prevail
example:
it was not clear whether a lent or donated to b a specific phoe. is the contract a
commodatum or a donation?
least transmission of rigths- this contract will interpreted as commodatum

pag onerous:
the doubt shall be settled in favor of the greatest reciprocity of interests.
example:
it was not clear whether A sold or leased to B a building. IS the contract a sale
or a lease?
should be interpreted- doubt shall be settled in favor of the greatest reciprocity
of interests. - sale

par 2:
ex: nagbenta ng lupa tas di alam kung ano specifc na lupa- contract is null and
void. never pa nakita lupa-

Art. 1379. The principles of interpretation stated in Rule

123 of the Rules of Court shall likewise be observed in the
construction of contracts

NOTES: APRIL 20. 2023

ms kim chui the movie actress went to mr dawyne johnson who is vacationing in the
PH and made an offer which was rejected by dawyn, and this made kim chui angry
cause a foreigner rejected an offer made in the Ph. she took a lipbite, and
repeatedly , and when mr johnson feeling the pain she requested kim to stop
inflictingh further harm. for kimchui to stop. she made a condition to make accept
her offer otherwise she will repeteadly hit made by miss kim chui. later on his way
home, kim chui met mr x. a prisoner who was realsed yesterday, x was previously
convicted committing the crime of arson and x made an offer which was rejected by
kim chui, to x made warning to kim chui, imagine u dont want me to change my life
to better citizen, if u will not agree to my offer then probably then u should not
sleep two times tonight because at 2 am, i will burn your house. and because of
this, was constraint to accept the offer to accept the offer of mr x will no longer
burn her house. then later x, went to yw who is her on her way to her wedding so
xdecided to go to church because x happens to bethe twin brother of y bf. and x
learn that his brother will not attend the wedding, y not knowing, he used the
money received kim chui to buy a suit taking the place of his twin brother while
taking his x as groom- even the parents of x and his twin brother can hardly
identify who is x and brother

status of contracts made based on the premises

kimchui dawyn- violence- serious or irresistable force employed- reason as to why
party entered is because of violence- voidable

x and kimchui- intimidation- well and grounded fear- reason as to why party entered
is because of intimidation

x and gf of brother- mistake of identity- vitiate consent only when such identity
have been the principal cause of the contract

mr a married his gf today. at 3 pm, her gf is b. come july 10, he was brought to
the hiospital by her parents, and on that day july 10, mr a her baby, mr a check
his wife and he was very worried until he met the doctor who congratulated for a
baby. a wondering how come there would be a healthy boy on july 10 that the first
time they had sex was on the night of the wedding. on that day wedding was
celebrated, another wedding celebrated between x who marries h, motnhs later on nov
10, y was brought to the hospital to deliver the baby. x then went to hospital
requested audience with doctor- thinking that his wife had prematured baby, made
love only in wedding. so x is wandering, y will april 20 to nov 10 a little over 7
months, so a and x on the other went ot court asking the court, to rule whether the
respective spouses committed fraud, and asking what is the status of the contract.

what will be the answer?

first case voidable
voidable

NOTES: April 27, 2023

1. Premises considered what rights will be available to Y anf B considering that
they are receiving something which was different to what they previously agreed
upon.

For Y
Y can compel X to follow the real intention of their agreement. Under the law, in
reciprocal contracts the cause is understood to be for each contracting party, the
prestation or promise of a thing or service by the other. In this case, Y agreed to
the contract that she will go to baguio if she will receive a necklace on her
birthday. The cause as to why y entered an agreement to x is because of the
necklace. Without it, she could have not enter into the agreement and went to
baguio on the following day after the contract was made. Hence, Y can ask x to
follow what was agreed upon.

For B
B cannot reform what was given through a will. Under the law reformation is not
available in a will because a donation done through a will is personal in nature,
there is no meeting of minds. In this case, the fishpond B received from A was
executed through a will, B cannot do anything about it as this is what A wanted in
his will tobe executed, a will is personal and irevocable such as in this case
where a property is involved.Furthermore, under the law an absolute simulated
agreements are considered void. In this case, when A asked B what she would like to
receive when he will die, it was a joke hence this kind of agreement is void.
Therefore, B cannot do anything about it as what she receives was executed through
a will.

1. What will be the status of the contract made by her auntie and X?
The contract of the auntie is valid but can be rescinded. Under the law when a
guardian sold a property of a ward and the ward suffer from lesion by more than one
fourth of the value of the property, the contract can be rescinded. In this case,
the property inherited by Ms. x has a value of 1M, but was sold by her
auntie/guardian for only 700k making the contract a rescissible one because Ms x
suffer from lesion by more than one fourth of the value of the property.

The contract of ms x is void. Under the law, a lesion through fraud invalidates a
contract In this case, what was sold by ms x was a stolen earring from her auntie,
there was fraud involved hence the contract is void.

2. what will be the remedies available to the parties thereto?

Ms x can rescind the contract done by her auntie as it is a rescissble contract.
Auntie can ask for the earring to be return, if it is impossible to be return then
auntie can claim for damages.

mr x is indebted to mr y amounting to 2 million pesos. mr x, later decided to

donate 4 million pesos to victims of calamities as well as to a friend who needs
money. later due to business reverses, x now does not have any asset to pay his
obligation to y when it matured. at the time he made donation he has 20 million.
but now cannot pay 2 m to y.
Mr. a also has the same obligation to mr b. and that obligation will be due next
month. however the two have misunderstanding, a decided to dispose all his assets
leaving no money asset to pay mr b. when the father of a learn of this, offer to
pay obligation of a, but b is telling father of a, imagine your son before the due
date transferred all his assets to others. I will do something so that i will be
collect from mr a.

1. what will be the status of the transferred made by x and a

x- valid transfer-under the law when the debtor did not reserve sufficient property
to pay the debt when he donated his assets, it is presumed that the debtor did this
to defraud his creditors - however in this case, at the time donation was made he
has an asset of 20 million which is still sufficient to pay his debt to y. But due
to business reverses x assets was negatively affected.

a- rescissible contract to defraud- under the law did not reserve sufficient
property to pay debt a presumption to defraud creditors- at the time of the
transfer made by a- he transfer is assets to defraud b because of their
misunderstanding.

2. what will be the remedies available to creditors y and b

Y- no rescission, valid transfer

b- rescind- the disposition made by a is to defraud b- those who acquired the

properties by a through transfer is liable for damages.

went missing in 2021, and his wife is already worried cause she did not hear any
word concerning a. aggravating by the fact that the family needs money, and the
wife already dispose exclusive properties, because of the need of money she will be
constrained some of the properties belonging to her husband a who has been missing
since 2021. and some belonging to her daughter because her daughter receives from
her godparents, like a necklace pair of earrings.

what will be the status of the contracts made by wife- regarding the property of
husband value is worth 100k, it was only sold for 70K

rescissible contract- under the law lesion or mere inadequacy of the sale in
comparison to the original value does not necessarily make the contract invalid,
however when the owner of the property suffers lesion by more than one fourth of
the value then the contract can be rescinded. In this case, just because the
property was sold in a lower price does not make the contract of sale invalid.
However, in this case the property of husband which is the absentee has been sold
for more than one fourth of the value.

property of daughter necklace and earrings- 30K but it was only sold for 20K suffer
lesion by more than one fourth of the value. it was only sold for 20K

property of husband
rescinded both
necklace and earrings

x and y are sweethearts since commonlaw husband and wife, due to the joint effrots
of x and y they were able to acquire several properties and bless with 5 children,
unfortunately y caught an accident who die. here comes the parents of ms y
requiring from mr x the share of y in the property. to which x objects, the parents
were constrain to go to court contending that they should be the one to inherit 1/2
share of y in the property and they effected the registration of the claim against
properties of x and y.Irritated, x sold the properties to a neighbor w, and w gave
attracted price, w decided to buy it.

What will be the status of the contract

rescissible-valid but can be rescinded- alienation by onerous titile are presumed
fraudulant when made by person against a judgment or writ of attachment. in this
case, the sale c

remedies of parents of y
alienation by onerous title-writ of attachment

________\\

void or inexistent contracts

Art. 1409. The following contracts are inexistent and void
from the beginning:
(1) Those whose cause, object or purpose is contrary to
law, morals, good customs, public order, or public policy;
(2) Those which are absolutely simulated or fi ctitious;
(3) Those whose cause or object did not exist at the time
of the transaction;
(4) Those whose object is outside the commerce of
men;
(5) Those which contemplate an impossible service;
(6) Those where the intention of the parties relative to
the principal object of the contract cannot be ascertained;
(7) Those expressly prohibited or declared void by
law.
These contracts cannot be ratifi ed. Neither can the right
to set up the defense of illegality be waived.

void vs voidable
-voidable pwede maratify
-void di talaga pwede
-voidable produces effect until annul
-void no legal effects at all
-void is void from the very beginning, no need an action unless it is already
performed.
-may be cured by prescription si voidable
-void cannot be cured by prescription
-defense of voidable contract makakapag invoke lang yung parties principally and
subsidiary while in void any party as long as his rights as affected.

void vs unenforceable
-unenforceable pwede maratify'
-unenforceable there is contract but cannot be enforce by court action
-unenforceable- cannot be assailed by third parties

ff contracts void from the beginning.

-cause, object or purpose is contrary to LMGPP
-absolutely simulated or fictitious
absolutely simulation void for lack of consent
relative- intent of parties is hidden- binding is the real agreements of the
parties-

-those whose cause or object did not exist at the time of the transaction
example: sale ng future inheritance, outside the commerce of men, impossible
service

-those whose object is outside the commerce of men

=those which contemplate an impossible services
-those where the intention of the parties relative to the principal object of the
contract cannot be ascertained
-those expressly prohibited or declared void by law.

2 kinds of void
-inexistent- formalities required by law are not met- no effect at all
-illegal or illicit contracts

charactetistics
- defense of illegality cannot be waived kasi nga illegal sya
-not subject to ratification
-action to declare the contract inexistent does not prescribe
-generally no action to declare it void is needed
-the defense of illegality of contracts is not available to third persons whose
interest are not directly affected

Art. 1410. The action or defense for the declaration of the

inexistence of a contract does not prescribe.
- if a contract is void, party of that contract can always bring a court action to
declare it inexistent or void kasi yung void di nagpeprescribe

Art. 1411. When the nullity proceeds from the illegality

of the cause or object of the contract, and the act constitutes
a criminal offense, both parties being in pari delicto, they
shall have no action against each other, and both shall be
prosecuted. Moreover, the provisions of the Penal Code relative
to the disposal of effects or instruments of a crime shall
be applicable to the things or the price of the contract.
This rule shall be applicable when only one of the parties
is guilty; but the innocent one may claim what he has given,
and shall not be bound to comply with his promise
Rule:
-where both parties are in pari de licto- both are guilty
no action against each other, both shall be prosecuted
price ng contract and instrument will be confiscated in favor of the government

- only one party is guilty

innocent party, may claim what he has given, not be bound to comply with his
promise
example:
pogi nagbenta ng shabu kay ganda worth 1M, itong si ganda nagbayad ng 100k, si
pogi di dineliver yung shabu. in this case, wala sa dalawa ang right to sue
another. they are both guilty and the two may be prosecuted.(pare de licto) YUNG
PRICE AND DRUGS in favor ng government.

example 2
pogi selling ganda a drugs, ganda did not know it is illegal, yun parin ang price
1m, binayaran ni ganda ng 100k, si ganda is innocent party, she can claim the
return of 100k, if di pa nakakapagbayad, ganda cannot be compelled to pay by pogi
for it is illegal to sell shabu.

Art. 1412. If the act in which the unlawful or forbidden

cause consists does not constitute a criminal offense, the following
rules shall be observed:
(1) When the fault is on the part of both contracting
parties, neither may recover what he has given by virtue of
the contract, or demand the performance of the other’s undertaking;
(2) When only one of the contracting parties is at fault,
he cannot recover what he has given by reason of the contract,
or ask for the fulfi llment of what has been promised
him. The other, who is not at fault, may demand the return
of what he has given without any obligation to comply with
his promise.

rule when the contract is void but it does not constitute criminal offense
both are guilty- wala sa kanila ang makakarecover kung ano man binigay nila by
virtue of the contract, and wala rin sa kanila ang pwede amg demand ng bawat isa na
mag perform ng performance

only one is at fault.- guilty cannot recover, or demand to fulfill the performance,
while the party who is not at fault he can demand to return what was given without
any obligation to comply with his promise.

Art. 1413. Interest paid in excess of the interest allowed

by the usury laws may be recovered by the debtor, with interest
thereon from the date of the payment

Art. 1414. When money is paid or property delivered for an

illegal purpose, the contract may be repudiated by one of the
parties before the purpose has been accomplished, or before
any damage has been caused to a third person. In such case,
the courts may, if the public interest will thus be subserved,
allow the party repudiating the contract to recover the money
or property

exception sa rule ng pare de licto na di ka na dapat makakarecover-recovery can be

made even if there is pare de licto, if the purpose has not yet been accomplish,
and damage has not been cause to third person

example:
for 10k, pogi promise beauty to kill ganda. beauty gave the reward in advance,
before pogi kill ganda, beauty withdrew from her plan di nya kaya.
is beauty allowed to do so?
yes, act has not yet been accomplish, no damage was cause to third person
may beauty recover what he has paid?
it is discretionary on the part of the court
suppose napatay na ni pogi si ganda tsaka palang nag repudiate or nag withdraw si
beauty
both parties beauty and pogi will be prosecuted for murder.

Art. 1415. Where one of the parties to an illegal contract

is incapable of giving consent, the courts may, if the interest
of justice so demands, allow recovery of money or property
delivered by the incapacitated person.

exception- where recovery is allowed again

when one party is incapacitated pwede pa maka recover

example:
si pogi binayaran ng 10k by beauty to kill ganda, supposedly si beauty pala is
minor.
before pogi kill ganda, beauty repudiated, ayaw na nya.
can beauty recover the 10k from pogi?
Yes, because beauty is still a minor she can still recover being a minor.
if the act is already consummated, pwede pa ba makuha ni beauty?
No. napatay na e. pogi will be prosecuted, since beauty is a minor- exempted from
criminal liability.

Art. 1416. When the agreement is not illegal per se but is

merely prohibited, and the prohibition by the law is designed
for the protection of the plaintiff, he may, if public policy is
thereby enhanced, recover what he has paid or delivered.
another exception- to pare de licto- no relief
recovery is allowed if:
-the agreement is not illegal per se but merely prohibited.
-the prohibition is designed for the protection of the plaintiff
-public policy would be enhance by allowing the plaintiff to recoverwhat he has
delivered

example:
si pogi dinonate nya lahat ng property to ganda nothing was left for his
sustenance, this is prohibited by law but it is not illegal per se, pogi may be
allowed to recover for his own support- pwede sya maka recover di naman talaga
illegal

Art. 1417. When the price of any article or commodity

is determined by statute, or by authority of law, any person
paying any amount in excess of the maximum price allowed
may recover such excess.
yung price na determine na ng price, tas ikaw nagbayad ka in exist of that maximum
price so recovery is allowed.
example:
price ng facemask 100 pesos max price, and you bought a facemask worth 150 pesos
per box, you can still recover the excess

Art. 1418. When the law fixes, or authorizes the fi xing

of the maximum number of hours of labor, and a contract is
entered into whereby a laborer undertakes to work longer
than the maximum thus fi xed, he may demand additional
compensation for service rendered beyond the time limit
hours of labor- if law fix a maximum hours of labor, and worker worked for a longer
period allowed, employer must pay additional compensation

Art. 1419. When the law sets, or authorizes the setting of

a minimum wage for laborers, and a contract is agreed upon
by which a laborer accepts a lower wage, he shall be entitled
to recover the defi ciency.
minimum wage, bawal ang waiver of right. dapat yung contract or sahod not lower
than minimum wage otherwise you can recover the rightful salary.

Art. 1420. In case of a divisible contract, if the illegal

terms can be separated from the legal ones, the latter may be
enforced.

Art. 1421. The defense of illegality of contracts is not

available to third persons whose interests are not directly
affected.
generally di talaga available to third person,
pwede lang i set ng mga tao whose interest are directly affected

Art. 1422. A contract which is the direct result of a previous

illegal contract, is also void and inexistent
example;
if pogi promise to ganda 10k if ganda will kill beauty, later after killing, the
contract was changed into giving a house and lot- the second contract is a direct
result pa rin ng first so the second is still void.

NOTES FOR MAY 11.

ms a owns a farm, he has diff kinds of animanls and he also has one female dog one
female kitten. this dog and cat are both pregnant. w saw the pregnant dog, while x
saw the pregnant cat. w offered to buy or all the offspring that the female dog
will produce they have agreed w will pay 20k, downpayment 10k. asking a when this
dog will give borth, in june. they have agreed w will get puppies in july. x also
offered to buy the expected kittens for 10k, and a accepted the payment. Y also
went to a but the problem he fdont have money to buy animals, because a and why are
friends, i am giving to u 4 ;legged animals, when will u want to get. i will be
getting next month

later come june, dog gave birth to 4 puppies but 2 weeks after the birth, a saw
happen out of anger kicking the puppy causing the puppy to die. cat had a
miscarriage when it was avoiding a tricycle causing the cat to fall on a clift
resulting to miscarriage. co

come june y is now demanding of what a promise to him.

what will be the rights and obligations of the parties

W- remaining dog plus damages arising from the death of the puppy
x-fortitious event he may annul or wait again for the cat to get pregnant or pursue
the contract
y- specific performance

x is attracted to y but knows if he will court y no way even if he offers moon and
stars fortunately x father is very rich and y belongs to a poor family. x request
his father to do something. and the father money and property offer to the family
of y. who probably would agree cause they are poor. y being the eldest. so the
father of x went to the house of y talking to the father of y and offersproperty
and cash the amount very substantial. and the father of x telling y coconut
plantation, 2 condo units, and 20 m if u can convince daughter y to marry son x.
and the father ofy very obedient accept proposal in consideration of marriage.
september. at the tiome youngest sister of y pver heard the discussion worried na
may kapatid si x. father of x left, the sister of x excludes herself and went to
her bf and tells bf, the bf will give some property to the sister of y they have
agreed the wedding will celebrated on october

in september, the wedding of x and y celebrated

sister of y in october did not show up

what will be the rights and obligations

father of x and father y
void- father of y

sister of y and her bf

unenforceable-
injured party in contract of marriage-

a husband using violence and intimidation force his wife to sell to him his wives
necklace and to sell to his friend his wifes bracelet. later this husband went to w
to borrow money using the bracelet of his wife as a security. w prepared a contract
which reads that husband is given 3 months within which to buy back the property.

what will be the rights and obligations of the parties thereto