OBLIGATONS

↳
Mo
contracts 3. Consensuality
meeting perfectedby meeting of the consensual
a

himselfwith generally minds

·
minds between two person
of whereby one binds or

(Art. 1305)

Adhesion
contractof
respectt o the other, to give something or to render some service.

Essential Elements the stipulations desired

preparedform
·

already a
containing
Withoutwhich the contract cannot exist.
·

by one party
1. Consent 1.
Relativity
2. Object ·
contracts takes effect only between the parties, assigns andheirs

3.Cause GR:Third do not have action to enforce annual

parties a cause
of or a

Accidental Elements contractn or are they bound

by the terms thereof

Those which cannot existwithout

·

are agreed upon by the parties andwhich XPN: 1. Iaw

E
1. Interest 2. contracts entered into to defraudcreditor

, 2. Terms

3.Place
ofpayment

payment
of
3. Tortious

1. Stipulation
interference

pur atri

Natural Elements 3.
Obligatoriness
Those which exista s partof the contract, even stipulation
·

is no
·
contracts have the force law
of

.
Warranty against hidden defect Stages of Contract

2.
Warranty againsteviction 1.
Negotiation/preparation, conception, Generacion)
Principles of Contracts CMACRO where parties provide for their offers bargain with each other
·
and

.
Mutuality 2. Perfection (Birth)
·

bind
must both parties;compliances can't be leftby the will of only one.
·
when parties have come
already to a definite agreement
consequences ofmutuality 3. Consummation (Death,termination)

contractwortconsentofthe other. performed

·
1. One
party cannot revoke or renounce a Terms contracthave already been
of

2. Determination
performance
of maybe left to a third person. Classification ofContracts
Escalation clause one increase/decreases compensation ofone parties .
Degree of dependence
*
upon the will of
VOID
issolely one parties. ·
Preparatory contracts maybe enteredinto:Ex. Agency, Partnership

2.
Autonomy *
Principal can stand alone by itself:Ex. Sale, Loan

Freedom liberty provided lacit.

to contract *
Accessory
·
or Depends upon another contract:Ex. Pledge, Mortgage
-

contrary to law: 2.
Perfection Formation

*
1. Waiver of FUTURE FRAUD consensual perfected by mere consent:Ex. Sale, Lease

2. Pactum Leoning stipulation*/excludes

*
one party from any share in P
*
Real-perfectedby delivery:Ex. Depositum,Pledge, commodatum
Pactum Commissorium* stipulation where creditor *
solemn/Formal must be inform provided by law.Ex. Donation of an
3.
appropriates the thing
Immovable

given by way of pledge, mortgage

4. Pactum de Non aliendo a
stipulation forbidding the owner from alienating 3. Parties
obliged
the immovable obliged:Ex. Lease, Sale
mortgage * Bilateral both parties are reciprocally
-

↳ Unilateral -

only one is
party obliged:Ex. Pledge, Guarantee
4. Cause Simulation:

* onerous consideration:E x. Sale, Barter, Ledse Absolute:VOID:parties did be bound at all

exchange of valuable 1. to
not
-

consideration:Ex. Donation, Commodatum, Remission conceal there true agreement:VALID

& Gratitious No equivalent 2. Relative:
parties merely
-

cannotgive consent
*
Remunatory
-

services or benefit renumerated (past service

5. Risk
·
Unemancipated Minors

inscine demented persons (LucidInterval)

* Commutative real fulfillment, equivalentvalues are given:Ex. sales, Lease or

⑧ Dear-mute (Illeteratel
·

Aleatory Fulfillment is dependentupon chance:Ex. Insurance contract

-

4. Name ·
Drunk or hypnotized

N ominate
· -
with
designated name under the law:Ex. sale Object
Innominate Withoutany under the law
·
* name subject matter of the contract
-

Do ut des= I to create or to end

Ex. give that you may give
·
is really obligations

Dout facias:I give that

you may do Requisites:

Facia ut des: I do thatyou 1. Within commerce

may do ofmen

Facia ut Facias: I do that do 2.transmissible

you may

Consent 3.Licit

meeting
·

of the opper and acceptance upon andthe cause

the
thing 1, not impossible

OFFER 1 ACCEPTANCE 5.d eterminate

opper certain Cause

acceptance* absolute A. CneroUS

a
qualifiedacceptance counter offer B. Gratuitous

8
offeror may Fix:time, place, manner of acceptance c.
Remuneratory

R W L ES
Cognition Theory Manifestation Theory
·
Follows that the acceptance takes effect from the time *Yout cause or produces No Expect whatever

offeror has the it is

·

manifestedby False * VOID

conce cause

*
knowledge ofthe the cause
presumed thatit exists and is
lawful
offeree

acceptance ofthe Inadequacy ofprice I will not the contract

appect

*
offeree
Motive Do not
affectcontract

Events [DIC1] Other Essential Elements

Intervining
·
Death Delivery
&
Insanity Real contracts
an offer become ineffective upon perfectedby delivery

Civil Interdiction the of which either Depositum

happening of 1.

Insolvency party before acceptance is conveyed 2.

Pledge

Advertisements:are not definite m ere

but invitation to make an offer 3. Commodatum
oppers,

Option Money &

Option Contract 1. Loan or Mutuum

Earnest Money Dawn Payment;Partofthe purchase price

-
Forms
ofContracts Defective Contracts

required validity of acontract

Recissible
for the perfection
GR:NO FORM is or

Valid until rescinded

Formalities are
required for. Nature

1.
validity Defect lesion/economic damage
*
2.
Enforceability (statute of Fraud) kinds GAPUS/GACTS

3convenience (to bind the 3rd

person) Remedy recission (subsidiary remedy) -
return whatever is given

Reformation ofInstruments Prescriptive 1

years
period
·

remedy by means of which awritten instrument is made or construed Ratification No convalidation by prescription
-

so as to express or conform to the true intention the

of parties As to who
may Parties/3rd person
question
when some errors or mistakes has been committed.

Requirements: voidable

meeting Nature validuntil annulled

of minds
..

2. Written instruments Defect consent

3.written instruments do not affect the true intention of kinds *VIMFU

the parties Remedy Annulment

Who can ask for reformation: prescriptive yearsat

1. Either party or his successor in interest Ratification Yes

As to who
2. Injured party, heirs and assigns may parties only
question
allowed:
NOT

.
Simple donation Unenforceable
2. Wills Nature valid butcannot enforced

to observe
When real agreement is VOID Defect
Gaincharity, failure form, both incapable of
3.

Interpretation of contracts kinds *

USB(SALSAR)

The literal
meaning of its stipulation shall control, Ifthe terms Remedy Ratification
·
of
a

contracting prestive
doubtupon the intention
contracta re clear andleave no
of the

parties Ratification Yes

Ift he words appear to be contrary to the intention of

the As to who parties
evident
party
·

may only
question
the latter shall prevail over the former
VOID
·
In order to judge the intention the contracting parties, their
of
Nature produces no effect

contemporaneous and
subsequent acts shall be principally considered Defect illegal object, absent element, law declares to be void

·
The or custom ofthe place shall be borne in mindin the kinds
usage many to mention

interpretation the
of ambiguities of a contract andshall fill the Remedy Declaration of Nullity

stipulations which
omission of are
ordinarily established
prescriptive Imprescriptible

Ratification NO

As to who may parties/3rd person directly affected

question
 ↑

Recissible:(GACTS)

Guardians whenever the words whom they represent suffer lesion by more

than 1 the value

of the things
of which are the objectthereof;

A representation ofabsentees. Ifthe latter supper the lesion stated in the

preceeding number;

C undertaken in
fraud of creditors when the latter cannot in any other

manner collect the claims due them;

Things under litigation ifthey have been enteredinto by the dependant,

without the knowledge and approval the

of litigants or competentjudicial

authority;and

Specially declared by law to be subject to recession.

Vices of ConsentVOIDABLE
CVIMFUL

Violence Force;Physical pain

Intimidation well grounded year;Imminent mental pain

Mistake shouldbe serious otherwise remedy:Reformation

Fraud Insidious words & machination:Failure to disclose facts;

ifthere is a duty to reveal

Undre Influence takes improper advantage his power over the

-

of

will another
of

Depriving the latter of reasonable freedom ofchoice

Unenforceable Contracts (USB)

Unauthorized contracts
*

Statute of Fraud

Both parties are incapable of giving consent

*
(SALSAR)

Special promise to answer for the debt, default, miscarriage ofanother

win
Agreement herebyits year from the
term is to
not be performed a

Leasing For alonger periodthan one

year, or sale ofreal property or an
therein;
Interest

Sale of goods, chattels or

things in action, at aprice not less than $500

Agreement made in consideration of marriage, othan mutual promise to marry

Representation as to the credits a thirdperson

of
Sales Obligation Rights of parties

the contracting parties obligates himselfto transfer the ownership vendor/seller

·
one
of

andto deliver a determinate thing, andthe other party therefore a 1. Take care of
the thing after the sales has been
perfectedprior to delivery

its 2. To deliver
price certain in
money or equivalent
3. To arrant the
thing

characteristics of sales:* Delivery constitutes transfer

*
Against eviction

consensual ownership
of
↳
Hidden defects
* *
Bilateral subjectmatter be determinate
must
Merchantability
*
commutative Fitness of goods

Principal 1. To
transfer ownership

Onerous 5. To pay taxes andincidents of the sale

Nominate

Vendee/Buyer

Distinguishments 1.
Payment
*
1 -
SAI ES PIECE WORK
OF Terms

Goods are: manufactured in ordinary manufacturedspecially for the A. Installment (personal real property)

course of business customer B. W/ Redemption (conventional legal)

service 2. To accept
subjectmatter:thing and
delivery delivery

Importance of Distinction:For applying the statutes Fraud

of

To deliver

2. SALE S DACION EN PAGO WHAT? by sample

·
Differences: source of obligation Extinguishes an obligation object by prescription

Theres aneed for PRE. Existing Obli. by sample & prescription

Requirement: No requirement
WHEN?

3. SALE S BARTER ↓
stipulated

consideration money) value money (value *

No stipulation

->
order priority
of
1. If
buyer pays

1. Manifest Intention ·
seller should deliver

2. What parties will receive ·

otherwise:seller= delay

2. Ifsellers pay

1- SALE S AGENCY TO SELL buyer shouldpay

·

ownership Transferredupon delivery Not transferred ·

except:Itstipulated

After delivery Risk of loss */in the buyer Risk of loss remains with the

already principal owner

Res
*
perit domino. The thing perishes for the owner
HOW MANY? Risk
of Loss
*
with the (Res perit domino]
As stipulated or:the
thing perishes anner

*
Different from stipulation XPN:A . stipulation
↑
a
illustration: B. Security title
Divisible isoption
ejeet:
↳

B buys 1kpcs & 100 1.2k ↓ 3 Reject:1.21 X C.

Delay in
delivery* whoever causes the delay shall bear the risk of loss
*
Indivisible B's option
"Accept: 1.21 v

Sellerdelivers Seller is notthe owner

*
2. Reject:1.21

800K B's option

* 1. Accept: 800 v GR:
Buyer acquires no better title to the goods than the seller had

=
Reject:80 0 XPN:A . Authorizedseller
buyer cannotcompelledtoacceptparticl
partial delivery isthat was stipulated B.
Statutory or judicial authority to sell

delivery
Modes of c. Estoppel

1. Actual Delivery 1.
Estoppel in pais tanner ledthe buyer to believe that seller had

2. Constructive
Delivery authority to sell

A. Traditio
Longa Manu *
long hand delivery e.g. the thingsTeasebyanener 2. Istoppel
by deed itafter sale, seller acquired annership, such

Possesorium E.g. Sales andLeaseback

passes to
B. Constitutum &
ownership automatically buyer as to

c. Brevi Manus short hand delivery E.g. lessee who buys the thing leased the thing is
already delivered

D. Symbolic Delivery sellers merely gives the key to awarehouse D. Sale of

an Apparentaver

*
5.
reaFormality
Execution of E.g. by execution of apublic Instrument E. Purchase from a merchant store, market or fair

3.
Delivery to a common carrier To arrant the thing
1. As to rights ·
in case breach warrant, Remedies
of of the vender:

an Instrument
Execution of Withdra
·
1.

Quasi Traditio* gains right to use something out following the Accion quanti minoris Action in which purchaser of good claims
·
2. a

usual legal process the

reduction of price proportionate to the

pendingseethe thing reduction invalue by a defect

1.
Ifobjectis entirely lost s hall be
contract without any effect Redhibitory Defects in animal:

2.
If partly lost
·

exercised in 10
days
·

Buyer may: ·
must die w/in 30 days after purchase

1. Withdraw ·
sale of large cattle is galernedby special law

2. Demand the
remaining part and pay
its price proportionately animals:
void sale of

3. Good perishes "out knowledge the seller

of
·
Animals
suffering from contagious disease

Buyer maytreat the sale: unpits for its purpose

· ·

A. Avoided

Valid
B.
·
Express- as stipulated Vaid contract GF
T itle can O recover?
Is Oreqto reimburse

goes to
B
·
Implied illustration: B valid v s ail
X

S will be

O'sn ecklace void

1.
Against Eviction sstore ~ X incarcerated

A.
Buyer deprived ofthe object bpT
stolen * T sells Buyer X
VOID Froms Valid X
store
B.
Deprivation cxpul * court
-
I

c. Due to a rightalready existing atthe time of sale Buyer

owner has
From - ~
valid better
public
D. Seller was given the
opportunity to dependhis title sale right

Exceptiswaived
. waiver consiente a
property a time
seller liable FMY of
-

of eviction RECHO LAW

2. Waiver intencionada* seller no longer liable in case ofeviction ·payments w/terms on installment of
personal property

2. Against Hidden defects illustration #1:

Possession

3
*

A. Not Hidden Emptor (Let buyer beware) (500k) B B

Scalar oinership
to Caveat -

~ chattel mortage a
B. Hidden Cavect Venditor (Letseller beware) security seller
of default
in case of

& *
If waived by seller: I default to exact fulfillment demand parment for
the balance
installment:5 yrs
ofdefect VOID
·
aware =

no
longer seller
·B defaults is
to exactfulfillment is becomes creditor
·
aware
not of "As is
deject:VALID where is
"
Payment*300K) 2 /more ↳ cancelsale seller/buyer
lost the rightto
Foreclose
the
returns pint
made tobject
3.
Merchantability 300 S
⑯ 340
The thing does its 40S
·

purpose toporeclose,
mortgage proceeds
250S
250
· The object soldis w/in commerce

Yip -B) X
·
it perishable goods are sold, warranty mustalso be perishable illustration #2:

1. Fitness of Goods sleases machines B for Tyr

A. General Purpose
* rent:200/month (hence, consideredinstallment payment)
B.Specific Purpose
-

stipulated
if
terms
*
w/in option to bry (considered sale of property in installment)
5.
Warranty against non apparent encumbraces

·
remedies in 1
year to rescind
task damages
*
To transfer ownership Pays Jan:Sep. (2kx9mos):1 8K

3
S demands B to

Ian?
-
Title:seller B
&
No defect Dec. As repossessed
Talid contractavoidable the machine
*
defaults Oct + NOx 1K =

*B demands y
illustration: return of
18K

M l4
yrs old
=

sells
sells 1Mt Horse andlot 2027 A B sells 1k (18yrsold)

B:Yegalage -

pays
Title

Bad Faith
Good Faith
·
NO Deject W/defect
may
be
t
annuled
Maceda Law w/conventional redemption (Pacto de Recto Sale]
&2/25/23
payments w/terms on installment Real property 3 PDRS B HFIRS:
·
of
(w/stip.:S can repurchase "/10yrs)
W canwrepurchase?
illustration #1:
B
Possession:
"3 X

SsellsHere sdies before the

Installment
contract
o ownership:S
phase"
repurchase
in
↓ ↑
7 whole
25 yrs repurchase
(1/1/33]
Industrial land
·

whole
· Commercialthe
and
B can require to you
=Y
-

Agrarian Reform

defaults sale/Financing repurchase

·Bank
Financing

payment
B
hasnoright in
·Housing loan of
in installment Not applicable sale to tenant
6SIS, PAG. IBIC

repurchase
under Land
Reform code when is the last day to repurchase?
Residential House lot
ReayInst. Buyer & Applicable o
Sale/Financing
2023
Protection Act
condominiums
[Maceda La] 25 Feb 25 2033
- Additional interest
-
NO
days) (3 leap years]
* ↳
Penalty 24 (3
Grace periodto pay Feb
unpaidinstallment
~ less than 2yrs=2 mos.
*
Parmenti 23 Feb. 22, 2033
Remedy for:(paid inst. eyrs or more: I mo. /yr
of Remedy for
For less than 2 yrs) payment Paid
installment 22V

& For more

available once every 5 years than 2
years illustration #2: But W/no
rightto
p aidinstallment
dictate how
~ Soy of
Its cancels

3mg, repurchase?Veree
*
is should return CSY WY3

3
the contract * WYZ PDRS B CanWalone

~
Si.
per year of payment
VA1 1D
YY

3
WPDRs'/s B V

illustration #2:
Past e Independent contracts
v
300S
V

* 340
10B
z"3
wrepurchase his "s?
* V

to foreclose proceeds
-

CAN
250S
*

*B require
250
SOB to repurchase the whole?X

illustration:CSY: illustration #3:

5 years 50%

45;
=

A
450,000
↓
8 years PDRS -

w/stip A can repurchase up to date:2/25/7

3 5%.= is; 8M
years,
*
-Sp-unusually inadequate. Mesm
B
2.
Buyer retain part

payment seeits
the purchase
D of price

Mortgageand
theirseeinsidere right
retains the

83. seller

3
5 50%
=

years pays for taxes

·

↑18 yrs * period to repurchase was extended

45%.90%
900,000
=

13 years 3%
x
=

YS. can be inferredthatthe true

agreement is merely equitable
as stip mortgage

w/Legal redemption
by agreement
* Ystip. s
Conventional -
I
↓

Co-owners
up to when is
Pacto derecto:s ale Y/rightt he

isestwhatare3rainers
wereease person'
periodto

withte 3
Terms ofpayment to repurchase repurchase :WX

w/redemption is
no stip= tyrs a

can
repurchase whatwaysoldto B?V

* CO.Owners
Y& repurchase?Proportionately
z
↑

Legal operation
=

IQ
Wiley
of Ifco-owners sells his shares

adjorning andanners
z' 2. WX asswrestle
to another coawner

other co-owner cannot

then the

repurchase

can repurchase whatwaxsold to Y?X

 Proportionate Reduction
only
-
Actual
*
Legal Redemption Adjorning landowners Not Lump Sum Area 1/10
Proportionate Reduction
" Actual - Either to Or

Prescriptive
* Rural agricultural Recission
period:

Areasnot than 1 hectare

3
1. more
Actual Proportionate
Reduction
only 6 months
. ALO can repurchase *

- from
2. Sold to buyer 2/more owner
-

w/smallest area
1/18
value delivery
Tiesfirstto offer to repurchase L Proportionate Reduction
3. buyer already axis the rural land Either to Or
⑦ Actual
Recission

* Urban

1. Residential Rightofpresentinthe
3
Sositatedthatmajoritypartthe
3
·

2. Commercial ALO
·

Previously acquiredfor not

If given:
3. Industrial speculation * Right ofRedemption
most
2/more -

beneficial

* w/ easement for servitude a

Right of way

1. E state
Dominant inner
determines:
LEASTInjury
·party gaining benefitofeasementcourt

2. Servient Estate *
Outer
· dominant estate sells
If
servicint will be given
the right
it will not
voluntarily give Pre-emption
·

of way

* Terms

1.
Lump sum
* NO* even ifthere's in area

a
to value
2. Not Lump
sum unique as area

3. Sales/Return Bretts;Buyer (Loss due to FE)Res perit domino

1. Ontrial or satisfaction a seller owns;s eller (Loss due to FE)

Lump Sum

illustration:
contract:
Approximately IK sqm

S
SP Lumpsum P 1M
=

should be
It
1k.sqm
-
sells land
no decrease
B in price

land Except ifstipis

-
950sqm
skelivers
B pays 1M * B will not
buy if
not 1k
sqm
Actual Ared

↓
no increase in price

S delivers land till sam

*
*
1100
sqm
the sale
* B pays 1M -
Cancel,
damages
g
sinsist
t o deliver option
oB's
IK
sqm

* B
pays in proportionate
delivered

damages
Bouncing Checks (BP22) Distinction between BP 22 and I staya

ELEMENTS criminalviolation
of of BP
22 For:

B P 2
A. Issuance worthless
of checks criterion for distinction 2 Estaf a

Maker/Issuer/brawer ofany checks to Nature

of crime Mala Prohibita Mala In Se
1.
apply on account
for value

2. Maker/Issuer/prawer has knowledge of insufficiency offunds type ofcrime against public interest against property

3. Which check is
subsequently dishonored presence of deceit/fraud Notrequired
Required

B.Failure to maintain sufficient balance on issuedchecks Presence damage

of Notrequired Required

1. sufficientfunds at the time of making

There's lissuing the checks
of worthless checks Required Not required

2.
Failure to keep sufficientfunds whin 90
days Good faith as a defense Not applicable Applicable

3. Check is dishonored by the drawer bank Notice ofDishonor Required required

Not

1. Failure to pay the value w/in 5

banking days after receiving Execution For account/value
simultaneously w/ Fraud
written notice Applicable Pencil Law special Penal Law Revised Penal Law

PENALTYfor violation of BP22:

1. Imprisonment - not less than 30 days more than 1

n ot
but year

2. FINE - not less than butn ot more than the amountof the check;n ot to

exceed200,000

3. the court
Both, at discretion of

DUTY OF DRAWIF BANK

·
To cause to be written, printed, or stamped in plain language

thereon, or attached thereto, to the reason

for drawee'sdishonor or

refusal to paythe same.

*
Where there are no sufficient funds in or credit with such drawer

bank, such fact shall always be explicitly statedin the notice of

dishonor or refusal.

Failure to establish that awritten notice of

dishonor was
actually

receivedbythe maker or drawer of

the check is a
ground for

an acquittal.
PDIC(RA3591) Requirements for claims:

·
PDIC createdin 1943. Agencyof Department ofFINANCE When:

·
To file claim w/n 2 takeover
years from PDIC's

FUNCTIONS To
enforce claim* 2years after periodto file
·

↓ Depositor Insurer Who:

Co than 100 balance

regulator ofbanks
·
2. more

liquidator of closedbanks w/existing obligations

·
3. Receiver

PURPOSE:
·
No updated address (less than look)

2. Protect depositors and promote financial stability

·
Accounts under business
name of entities

2. Help depositors have quicker access to their to insureddeposit should NOT eligible for early payment

the bank close To whom:

Personally
* /PDIC public assistance center
3. To
recovery rate of deposits
chance
·
PDIC reps.

coveredby PDIC: (CT of SaD NeSs)

·
Thrumail claims processing dept
Coverage:

Certificate Time
of Deposit 500,000 per depositor of Who signs:

Savings Deposit closed bank Depositor

·
18
years old

Demand/checking account 1,000,000 depositor with Parent

· *
below 18
years old

Negative withdrawalCNOW
Order of singletjoint account Agent* "By "accounts
·

Special savings
·

Trustee "ITF"accounts

depositor
·

Each Joint accounts

Adjustments: When paid:

2. Threat
to
monetary a financial stability
·
w/in 6 months
from the date ofFiling

Unanimous vote of the BOD PDIC shall be legally subrogated to all rights of depositor against
·
2.

Approval
3. the
of president the Philippines
of closedbanks

entitledto
NOT payment: (SHAIOU-U) MODE
O F PAYMENT

Splitting ofdeposits occurs whenever deposit cash

·

Punishable:
2. Broken dant transferred ·
Transferreddeposit in another insuredbank (equal)
6-12
years
2.4/120 days after bankrupcy 50K-10M

3. To avail max deposit inscoverage Deposit Account

Head office of
Foreign Bank branch 1.
Single Account 2. Joint Account

A MLA ↳ "By" -

Former ·
held in the names
of both

Investmentin products (bonds & securities,trust accounts) ·

Accounts In trustFor latter

jointparties a natural
↓

Outside the Philippines ~"For the Act of"-latter ↑

Presumedfor Judicial

Unfunded accounts ·
consolidate all single accounts only

Unsafe t unsoundbanking practices ·

Diff. banks* sook perbanks (separate)

·
Dipt.branches
*
consolidate 1 bank (single)
Unclaimed Balances (PD6xa) 6.
Approving Authority

·Dormant Deposits
credits deposits a ny person known to be dead who has not or Head Law and
Division Chief
·
or or
of < OO, OOP

made further deposits for atleast1 0 years Litigation Division Legal Service

covered Institutions Director, Legal service 100,000 -

500,000

·
All banks, trusts, savings, mortgage, mutual building and loan associations

which reported to treasurer Philippines

of as unclaimedthe accounts Deputy Treasurer of PH <500,000 1,000,000
-

being appliedfor reactivation

Treasurer of Philippines (1,000,000

Act requiring coveredinstitutions to transfer unclaimed balances heldby

them to treasurer of Philippines

·
Duty of treasurer to inform SOLGEN

·
For escheat proceedings, itis filed thru petition, by SOLG IN in

of
Court
FirstInstance where deceased last resided or which he

had estate ifhe residedout of

the Philippines

Affidavit ofUndertaking

officer absolving Bureau ofTreasury prom

·
siorn by abank
statement

any liability that mayarise due to granting ofapplicants' request

For reactivation

procedures for reactivation unclaimed

of balances

A. Letter request ofdepositor/creditor

B. Authentication

C. covered institution
Letter requestof

Depository bank
·
a BOT

D. Deed of Undertaking
BOT free from liability
·

any

E. Letter of authority to reactivate

·
issuedbyBOT

F.
Entity requirements

Requesting party juridical person/entity:corresponding board

·

is a

resolutions and/or
secretary's certificate showing signatory

For reactivation
creditTransaction (Bailment
Res Pent Domino

Object ownership obligation Purpose compensation Expenses who shoulder? Loss due to Fortuitous ent

simple Loan
fungible/consumable Debtor
·

Debtor Debtor
To For consumption: onerous
· ·

par
·
money or
·
or

< Mutrum or utang)

·
To replace
·

gratuitious

expense
commodatum (Hiram) ·
Non fungible/Nonconsumable creditor/Bailor. To return. To use
·Essentially. Ifordinary Debtor/bailee ·
creditor;xPN:Ifthe bailee:
consensual
expense
if fungible andconsumable
only gratuitious ·

IExtra-ordinary 2.
Guilty ofdelay
so-bailee (nang-hiram)
ifthe commodatum has For displayor exhibition A. Actual 2. Guilty ingratitude
of
use
so-bailor
(nagpahiram) ·
able to

thing
save

a period, the bailor cannot

ask for a thing unless

return of B.
Notactual 100 bail or 3. Uses for diff.purp.

he has a
urgent need 1. Allows other to use
except:member
*
Precarium
household
of

5. Leases to other

G. object is delivered
with appraisal
credit transactions perfection
·
PLEDGE consensual c overed
but
by the statute ofFrauds

Object Public Instrument that is

registered in the registry of deeds
·

Personal property including incorporeal rights is

required to bindthird
·

parties

Perfection Possession

Delivery
·

Mortgagor
·

·
is
Public Instrument
required to bind 3rd parties Principal Obligation

that which is statedin the deed even

·
Possession Generally, covers only

Pledg
·

ifless than the amount ofloan.

Return
ofthe thing pledged by the pledgeto the pledgor shall result Exception:stipulation ofdragnetclause
·

in extinguishment the contract the

of of pledge · clause in a
mortgage deed stating that a

Principal Obligation mortgage secures all debts thatthe mortgagor

to the mortgagee.
That which is existing at the time ofthe may at any time
·

pledge one

spending) spending)
the
sale of thing during PEND ENCY the
sale of thing during PEND ENCY

Valid with consent Valid

·
·

Sale For DEBT

Sale For DEBT

By Notary Public Auction: always extrajudicial Extrajudicial judicial

· ·

or

Notice to Pledge Notice to

Mortgage

Required NOT required. Unless stipulated

· ·

Judicial posting
Legal pledge
·
·

↑ ·
requires demand for the Foreclosure
amount must be made spublic places atleast2 0 days prior to sales and

within 1 month publication

from such demand

creditor'sright to EXCISS creditor'sright to EXCISS

INTITLED, exception:
·
Not entitled

1
stipulation creditors right to
recovery deficiency

Intitled except, mortgagor unless there's

·
is 3rd
2.
Legal pledge party,

creditors right to
recovery deficiency stipulation

entitled Redemption
·
NOT

Redemption Extrajudicial Foreclosure:1 year from date foredosure ypt:

·
of

No right 1. creditor -
Bank

2. Debtor Juridical person

Real Estate Mortgage not

exceeding 3 months

Object ·Juridical Foreclosure:until the confirmation sale

of by court

Real Property extends to the natural accessions, improvements, fruits,

·

and accrual income, and indemnity from insurance

Chattel Mortgage

Object

Personal property subjectthereof

Perfection

·
Formal

·
Appidaxito f Good Faith registered in the Mortgage Registry in the

Registry of deeds required to bind 3rd Absence of which,

parties.

however, makes the contract still binding between parties

For vessels
·
-
MARINA

For Motor vehicles. (TO

·

Possession

Mortgagor
·

principal obligation

Those indicated in the Affidavitof Good Faith stipulation

unless there's
·

as to increase in coverage which will be binding but the security

itselfarises only after amending the old contract

sale the
of
thing during PENDENCY

criminal
Liability
·

sale for Debt

Extrajudicial only
·

Notice to
Mortgage

·Required 10 days prior sale

·Posting 10
days prior auction
-

creditor's rightto EXCESS

NOT entitled
·

creditors right to recovery deficiency

·
Entitled unless under RICTO1aX

Redemption

·NO Right
Partnership Formal Requirements

contract whereby persons bind themselves to contribute money, GR:A

partnership may constitute in
·
zor more
a
any form

property or industry to acommon fund, with the intention ofdividing the Excepti

profits among themselves . Immovable property

inventory saidproperty is made

·

of

characteristics ·

signed by parties

. consensual 1.
Principal
·
attached to PUBLIC INSTRUMENT

2. Bilaterals. Onerous 2. capital is 3,000 or more

Nominate Preparatory in PUBLIC

·
3. 4. appear
must INSTRUMENT

· recordedin SEC
only for convenience, validity
* is not affected

Principles applicable:

Affectio there exist mutual

ofpartnership
Societatis -
confidence and trust kinds

Delects Personde o
personal choices As to personality As to life/existence As to liability

De jure w/a fixedterm General

·
· ·

De facto Will Limited

·

creation: voluntary agreement

· ·

No. of organizer: 2 or more

·

estoppel

Existence: (exp:if
No time limit agreed)

Liability: May extendto private property According to object

Transferability: all parties MUST give consent 1. Universal (Husband t wife Notallowed)

Bindthe Firm: can bind: partners are agents A. Present

property

Remedies of a partner can sue other partner PresentProperty. Partnership

i.

mismanagement:who mismanages Fruit Income -

Partnership

Nationality: Where itwas created t % ofannership

w/stip. -
Partnership

the time the contract begins w/o stip. Partners

FuturesProenele
personality:
-

From
Partners
None; DICI dissolves it
succession: partnership
w/stip. -
Partnership
Fruits/Income w/o stip.
-
Partners

Rules as to existence

7. No partnership B. Profits (if silent)

Not partners to each other;notas to 3rd person icontributions

·

co-ownership/co-possession ·

ownership Partner

sharing ofgross returns ·

Usufruct Partnership

Receipt ofshare in profits:Prima facie evidence that he is Future property partnership

·
2. a

partner in the bus

a debtby installment

except:ifprofits were receive is in payments:b. wages rent ii. All profits (industry/work) Partnership
annuity
to widowy
/out stip.
a
c.
-
Partnership
d. Interest on aloan

consideration
e.
expr: profit of future property w/stip. -
Partner
2. Particular (Huskand a
wife allowed) 2. To give additional contribution stipulated otherwise, can be
sell
compelledto
Determinate things, their fruits capitalist partner:YES exp it already insolvent
·
a. use of interest

b.
Specific Undertakings
·
Industrial partner:NO exp stipulated
it

c. Exercise of profession or occupation

3. To
engage in business
Not similar to business:YES
kind Partners ·
capitalist similar:NO
of exp stipulated
it

contribution: otherwise
Liability

1. capitalist 1. General ·
Parris offered alone

2. Industrial 2. Limited
Not similar exp it stipulated
P
similar otherwise (partner'soption)
Industrial
·

Capital
3. -

Industrial

Profito r Explosion
Partnership
·

other kinds of partners:

↓

Damages

↓ SilentPartner Managing Partner

2. Secret Partner c.
Liquidating Partner 4.
Receipt demandible sum
of

3. DormantPartner I.
Incoming Partner to partnership
holly
-

both due anddone andible

4.Ostensible Partner Adebt:to partner-look

Payment:

DebttoManagingpartnerismoreonerous
- et
Parte

Pays look to
managing partner
obligation of apartner.To partnership and other partners Partnership *
name of Partnership
otherwise

1. To give his contribution name

ofPartner
-
Proportionate

No stipulation;shall contribute equal shares

·

·
be
Must provided upon perfection of contract; exp. itstipulated 5. Other obligations:

·
Failure to contribute;he becomes a debtor
for
the interest and to
A. Not convertpartnership Funds/property for his own use

damages from time to time of

supposed compliance B. To account
for I hold as trustee, unauthorized personal profits

·
A partner is likewise liable similar to avendor c. Pay for damages caused by his fault

Risk
of Loss:
D. share with other partners the share of the partnership creditwhich he

Loss borne Partner: has receivedfrom insolvent firm debtor

by an

1. Specific anddetermine contribution which is NOT fungible 5. Keep

the Partnership
books in the principal office andallowthe other

only
and their use a pruits maybe for the common benefit partners to have access, inspect and copy the same

2. There is stipulation

obligations a Partner:To third person

of

operate under firm name

Partnership shall
Loss borne by the Partnership: 1.Firm Name
estoppel
stranger
-

partner by
-
do not have the
1. contribution: i ncludedthe
It name of righto fpartner

a fungible c. contribution to be Limited Partner

-
liable as general partner
b. cannot
be kept who deteriorating sold

2. There was appraisal in the inventory a no stipulation

2.
Liability after exhaustion ofpartnership assets 5.
Solidary Liability for Torts

GR:ALL Partners, including industrial ones, shall be liable pro rata ordinary course business
of

beyond partnership'sassets wrongful acts/

omission
partner
by a

w/ authority co-partners
of
3 Partnership is solidarily liable

3. Authority to act for andin behalfofthe partnership

Express

3
if is not the usual
*
the partner carrying on

1.
Implied business of
the partnership, the actwill not 3.
Solidary liability for misappropriation
Apparent bind the partnership unless authorized

Authority 9. Partner as a receiver

Every partner is an agento fpartnership

acting w/in scope ofhis
*
2. Mutual Agency partner authority misapplies the money
apparent

exp,"isone the
of partners object received

2. Unusual acts: b. Partnership

as receiver

andis
*
of business
·
Acts of dominion partnership in the course receives money or property

of all partners misappliedby any partner while iti s

consent in the
·
Requiring custody ofpartnership

must be presented to all partners

Unusual acts 7. Partners by estoppel

(SACREDD] exp:
.Ifauthorized a.
Existing partnership

2. Business of partnership is abandoned i. Partnership consented -

Partnership
is liable

submit partnership claims liability to arbitration ii.

Partnership did not consent No
liability exist
partnership
-

or

Assign partnership property in trust for creditor or assignee'spromise to pay the debts of partnership 5. Non-existentpartnership

judgement liability parties is pro-rata

·

confess a of

Renounce aclaim
partnership
of

Enter into compromise partnership claim or liability 8. Liability of NEW (Incoming) partner

Dispose of the goodwill the business

of i ncurredprior to
9. Debt admission -

up to his contribution (exp: ifstipulated)

Do
any w hich
act wouldmake it
impossible to carry on the ordinary course
of b. Debt
i ncurred after admission -

to his
up personal asset

business

1.
Effects conveyance Real
of
of
Property
conveyance is in
in who conveyed Effect
Property is the the
the name
name of property
of
partnership
Valid conveyance but
may recover exp
Partnership Partnership Partner
· · ·

1. When the transfer binds

the Partnership
~one ~one or more ~one or more
or more 2.
Transferee had no knowledge
partners partners partners
lack
of or excess authority
of

Partnership
·
Partner ·
Partner Passes only equitable Interest

the partnership is"in the

of
·
one or more ·
Partner/ship ·
Partner authority (ifnot, apparently
Bautnerthe nothing transfer)

·ALL partners. ALL partners. ALL partners VALID transfer

Dissolution Winding Up -

causes ·
liquidating the partnership and distribution ofthe proceeds
process of

Extrajudicial to the claims against

satisfy the partnership

a. w/out agreement
violation of creditors other than partner
priority
those owing to:
partners other than for capital profit
i. Expiration of term Distribution
a

of assets
partners in
respect capital
of
ii. Express will ofanypartner
partners in respecto f profits
iii. Express will of All partner
Thoseowing to:

ix. Expulsion Partner's liability it become insolvent:I separate creditor

any partner
is
of

b. In contravention the Partnership creditor

of agreement between partners 2.

c.
By operation law
of 3
partners by way

i. legal becomes illegal of contribution

ii. lost of the to be contributedbefore

thing delivery
iii. Death Limited Partnership

ix.
Insolvency ·
one or more
general partners AND
o ne or more limited partners

v. civil Interdiction ·
limited partner's liability is limited to his capital contribution

.
two or more persons desiring to form limitedpartnership shall sign and

2. Judicial swear to certificate

a

Ipnot filed, liability

"
9.
Insanity must be filedin SEC. is of the same

b. Incapable of
performing his part as general partnership

guilty of such conduct Limitation:

c. as tendto affect prejudicially

d. willfully or
persistently commits a breach ↓limited partners cannot be anindustrial partner

partnership be carriedon a loss Surname shall appear in the partnership unless:

e. business of can
only at 2. not name

a also aname
f
other circumstances render a dissolution equitable of general partner

b. prior name of partnership

Effects 3. cannot take partin the managementofthe partnership

1. Acts, Insolvency. Death (AID)

·
IfA lD notice should be given Distribution of Assets ofalimited Partnership:

·
InotAlD mutual agencyis terminated woutnotice order of priority:

. creditors other than partners

dissolution capital & profits

2. Still
binding after 2. p artners, other than
LTD

winding-up ofaffairs ITD partners in respect profits

·
5.
of

·
contracts with creditors who had NO notice partners in
1.LTD respect of capital

S.
general partner other than for capital profits

3.The Old partnership is dissolved andNEW partnership is created c. general partner in respectofprofits

F.
general partner capital
in respectof
Rights ofa Partners Partner'sinterest may be subjectto acharge or attachmentbycourt:

1.
Rightto share in the profits i. ONLY the interest(i.e. profits surplus)

Distribution of
profits: ii. Priority is still
given to creditor
of the partnership

A stipulatedor; iii.Such interest may be redeemed prior to foreclosure w/

B. capital contribution ratio;industrial partner shall receive just ↓

Separate property a ny
of one or more of the partners

equitable 2.
property w/the
partnership consent of all the other partner

the
Distribution losses:
of 3. His right to participate in
management
Astipulated or; RULES ON MANAGEMENT

B. agreement as to profit or; i. One

managing partner (mp)

c. capital contribution ratio

Managing partner in the articles may execute all acts of administration

partnership
of in good faith, even w/ opposition

2. Property Rights from other partner

9. His rights in specific partnership property power to execute can

only be revokedif:

ipartners have equal rights w/ such for partnership purpose a. w/ just or

lawful cause

only b.
by vote of the partners
a
representing the
controlling interest

ii. NOT assignable;exph:assignment ofrights of all the partner

in the same
property Managing Partner after The power as manager may be

to attachment
iii. NOT subject or execution, expn on aclaim has
partnership been revoked
by a vote of the partner

againstpartnership constituted representing the controlling interest

iv. NOTsubject to legal support even wout justlawful cause

i n the
b. His interest partnership

Effecto f conveyance of
a partnerswhole interest: ii.
Multiple managing partner

i. Does not dissolve the partnership;expn ifstipulated .w/ stipulation, NO MP

may act wout consent of
the others

ii. The conveyed does notnecessarily become a partner;such 2.w/ specification, each MP can perform of
an act administration

has no rightto, w/in their respective duties

. Demand accounting to settlement 3. w/outstipulation & specification:

all acts
Interfere administration of the of administration
in the each
2.
management or a.
may act separately

b. the matter shall be decided

partnership business;or by a majority the MP
of

3. Demandinformation, accounting and

inspect per head count, if the
one of Mp opposed the act of

partnership books another

Rights the
of assignee/conveyee: c. 11 tie, the controlling interest of all the partners shall

i. To get profits of the assignor prevail

ii. To avail of the usual remedies in case

of fraudin the

management
iii. No managing partner:w/stip. No partner cannota ct whout the support of

partners

The concurrence
of all shall be necessary for the validity of the acts,
·

↓ the absence or disability ofanyone of them be

cannot alleged

expn:if
there is imminent danger ofg rave or irreparable injury to

the partnership

iv. No agreement as to managementof partnership

· All the partners shall be consideredas agents

expo:none the partners may, out the

of consent ofothers, make any

importantalteration in the immovable property the

of

itmaybe
partnership, even if useful in the partnership

expo to the exp: If the consent is refused by other partners,

while it manifestly is prejudicial to the interest of

the partnership, the court may intervene

other rights of partners

associate x/another person in his share

e. inspect& copy partnership books

3. Demand
formal in
account the
FF:

a
wrongful exclusion of
a partner

b. When there'sa stipulation

c. As to info secret profits) affecting partnership

d. Whenever just equitable

Ask for dissolution the t

1. of the firm at proper time rightto

return capital advancement

of

5.
Rightt o compensation

6. Rightto reimbursement