Obligations and Contracts: San Beda College of Law
Obligations and Contracts: San Beda College of Law
Requisites:
1. cause is independent of the will PRINCIPLE UNDER ARTICLE 1176
of the debtor Before the presumption that a prior
2. the event must be unforeseeable installment had been paid may arise,
or unavoidable the receipt must specify the
3. occurrence must be such as to installment for which payment is
render it impossible for the made.
debtor to fulfill his obligation in
a normal manner REMEDIES OF CREDITOR
4. debtor must be free from any TO
participation in PROTECT CREDIT:
5. the aggravation of the injury 1. Exhaustion of debtor’s property
resulting to the creditor (Lasam 2. Accion subrogatoria - to be
vs. Smith, 45 Phil. 657) subrogated to all the rights and
actions of the debtor save those
which are inherent in his person.
3. Accion pauliana - impugn all the chance and/or the will of a third
acts w/c the debtor may have person
done to defraud them. 6. Possible - condition is capable of
NOTE: 2nd & 3rd remedies are realization according to nature,
subsidiary to the first law, public policy and good
customs
Rights acquired 7. Impossible - condition is not
by virtue of an obligation are capable of realization according
transmissible in character to nature, law, public policy and
good customs
8. Positive - condition involves the
performance of an act
9. Negative - condition involves the
omission of an act
1. When they are not
10. Divisible - condition is
transmissible by their very
susceptible of partial realization
nature e.g. purely personal
11. Indivisible - condition is not
right
susceptible of partial realization
2. When there is a stipulation of 12. Conjunctive - where there are
the parties that they are not several conditions, all of which
transmissible must be realized
3. Not transmissible by 13. Alternative - where there are
operation of law several conditions but only one
must be realized
PURE OBLIGATION
One whose effectivity or Rule in Potestative Conditions
extinguishment does not depend a. If the fulfillment of the
upon the fulfillment or potestative condition depends
nonfulfillment of a condition or upon the sole will of the
upon the expiration of a term or debtor, the condition as well
period and is demandable at as the obligation itself is void.
once. It renders the obligation
illusory.
CONDITIONAL OBLIGATION (Applicable only to a
One whose effectivity is suspensive condition and to an
subordinated to the fulfillment or obligation which depends for
non-fulfillment of a future AND its perfection upon the
uncertain fact or event fulfillment of the potestative
condition and not to a pre-
Kinds of conditions: existing obligation.)
1. Suspensive - fulfillment of the b. If the fulfillment depends
condition results in the exclusively upon the will of
acquisition of rights arising out of the creditor, both the
the obligation condition and obligation is
2. Resolutory - fulfillment of the valid.
condition results in the NOTE: In case of simple
extinguishments of rights arising potestative condition, e.g. right
out of the obligation of first refusal, such condition is
3. Potestative - fulfillment of the valid.
condition depends upon the will
of a party to the obligation Rule in Impossible Conditions
4. Casual - fulfillment of the
They shall annul
condition depends upon chance
the obligation which depends upon
and/or upon the will of a third
them.
person
5. Mixed - fulfillment of the
condition depends partly upon 1. pre-existing obligation
CLASSIFICATION OF TERM OR
PERIOD
RIGHT TO RESCIND (ART 1191) 1. a. suspensive (ex die) – obligation
becomes demandable only upon
The right to
arrival of a day certain
rescind needs judicial approval.
b.resolutory (in diem) – arrival
1. If there is an express of day certain terminates
stipulation of automatic the obligation
rescission
2. a. legal – granted by law
2. When the debtor voluntarily
b. conventional – stipulated by
returned the thing
parties
c. judicial – fixed by courts
NOTES:
3. a. definite – date/time is know
Article 1191 refers to judicial beforehand
rescission. It does not apply if b. indefinite – the date/time of
there is an express stipulation to day
rescind, in which case such certain is unknown
stipulation must prevail. There is
c. Payment by Cession
CHAIRPERSON: Romuald Padilla ASST.CHAIRPERSON: Vida Bocar, Joyce Vidad EDP: Alnaiza Hassiman, Dorothy Gayon
SUBJECT HEADS: Christopher Rey Marasigan (Persons and Family Relations), Alejandro Casabar(Property), Ma. Rhodora
Ferrer(Wills and Succession), Ian Dominic Pua(Obligations and Contracts), Sha Elijah Dumama(Sales and Lease), John Stephen
Quiambao(PAT), Christopher Cabigao(Credit Transactions), Ligaya Alipao(Torts and Damages), Anthony Purganan(LTD),
Ma. Ricasion Tugadi (Conflicts of Law)
86 2005 CENTRALIZED BAR OPERATIONS
CHAIRPERSON: Romuald Padilla ASST.CHAIRPERSON: Vida Bocar, Joyce Vidad EDP: Alnaiza Hassiman, Dorothy Gayon
SUBJECT HEADS: Christopher Rey Marasigan (Persons and Family Relations), Alejandro Casabar(Property), Ma. Rhodora
Ferrer(Wills and Succession), Ian Dominic Pua(Obligations and Contracts), Sha Elijah Dumama(Sales and Lease), John Stephen
Quiambao(PAT), Christopher Cabigao(Credit Transactions), Ligaya Alipao(Torts and Damages), Anthony Purganan(LTD),
Ma. Ricasion Tugadi (Conflicts of Law)
86 2005 CENTRALIZED BAR OPERATIONS
CHAIRPERSON: Romuald Padilla ASST.CHAIRPERSON: Vida Bocar, Joyce Vidad EDP: Alnaiza Hassiman, Dorothy Gayon
SUBJECT HEADS: Christopher Rey Marasigan (Persons and Family Relations), Alejandro Casabar(Property), Ma. Rhodora
Ferrer(Wills and Succession), Ian Dominic Pua(Obligations and Contracts), Sha Elijah Dumama(Sales and Lease), John Stephen
Quiambao(PAT), Christopher Cabigao(Credit Transactions), Ligaya Alipao(Torts and Damages), Anthony Purganan(LTD),
Ma. Ricasion Tugadi (Conflicts of Law)
86 2005 CENTRALIZED BAR OPERATIONS
Autonomy
The parties are free to stipulate
anything they deem convenient
provided that they are not contrary
to law, morals, good customs, public
order and public policy. (ART 1306)
Consensuality
Contracts are perfected by mere
consent and from that moment, the
parties are bound not only to the
fulfillment of what has been
expressly stipulated but also to all
consequences which, according to
their nature may be in keeping with
good faith, usage and law.
CONSENT
Manifested by the concurrence of the
offer and acceptance upon the thing
and the cause which are to
constitute the contract.
Requisites:
a. Legal capacity of the contracting
parties
b. Manifestation of the conformity
of the contracting parties
c. The parties’ conformity to the
object, cause, the terms and
conditions of the contract must
be intelligent, spontaneous and
free from all vices of consent
d. The said conformity must be real
and not simulated or fictitious
3. Action for the Action for annulment or Action for rescission may Corresponding action
declaration or nullity defense of annulability prescribe for recovery, if there
or inexistence or may prescribe was total or partial
defense of nullity or performance of the
inexistence does not unenforceable
prescribe contract under No. 1
or 3 of Article 1403
may prescribe
6. Assailed not only Assailed only by a Assailed not only by a Assailed only by a
by a contracting contracting party contracting party but contracting party
party but even by a even by a third person
third person whose who is prejudiced or
interest is directly damaged by the
contract
affected
any manner claim what are due 7. Failure of the vendee to take
them; exclusive possession of all the
property
4. those which refer to things under
litigation if they have been entered
into by the defendant without the Rescission in Rescission Proper
knowledge and approval of the Article 1191 in Article 1381
litigants and the court; 1. It is a principal 1. It is a subsidiary
5. all other contracts especially action retaliatory in remedy.
declared by law to be subject to character.
rescission; and 2. The only ground is 2. There are 5
6. payments made in a state of non-performance of grounds to rescind.
insolvency on account of obligations one’s obligation/s or Non-performance by
not yet enforceable what is incumbent the other party is not
upon him. important.
Requisites: 3. It applies only to 3. It applies to both
a. the contract must be rescissible reciprocal obligation unilateral and
reciprocal
b. the party asking for rescission
obligations.
must have no other legal means
4. Only a party to the 4. Even a 3rd person
c. to obtain reparation for the
contract may demand who is prejudiced by
damages suffered by him the contract may
fulfillment or seek
d. the person demanding rescission the rescission of the demand the
must be able to return whatever contract. rescission of the
he may be obliged to restore if contract.
rescission is granted 5. Court may fix a 5. Court cannot grant
e. the things w/c are the object of period or grant extension of time for
extension of time for fulfillment of the
the contract must not have
the fulfillment of the obligation.
passed legally to the possession
of a 3rd person acting in good obligation.
faith 6. Its purpose is to 6. Its purpose is to
f. the action for rescission must be cancel the contract. seek reparation for
brought w/in the prescriptive the damage or injury
caused, thus allowing
period of 4 years
partial rescission of
the contract.
BADGES OF FRAUD:
VOIDABLE CONTRACTS
1. Consideration of the conveyance
Those in which all of the essential
is inadequate or fictitious;
elements for validity are present,
2. Transfer was made by a debtor
although the element of consent is
after a suit has been begun and
vitiated either by lack of capacity of
while it is pending against him;
one of the contracting parties or by
3. Sale upon credit by an insolvent
VIMFU.
debtor;
4. Evidence of indebtedness or What contracts are voidable
complete insolvency
1. Those where one of the parties is
5. Transfer of all his property by a
incapable of giving consent to a
debtor when he is financially
contract
embarrassed or insolvent;
2. Those where the consent is vitiated
6. Transfer made between father &
by mistake, violence, intimidation,
son, where there is present any
of the above circumstances undue influence or fraud
The binding tie of these obligations is 7. Payment of legacy after will have
in the conscience of man, for under been declared void.
the law, they do not have the
necessary efficacy to give rise to an ESTOPPEL
action. A condition or state by virtue of
which an admission or representation
Examples of natural is rendered conclusive upon the
obligations enumerated under the Civil person making it and cannot be
Code: denied or disproved as against the
1. Performance after the civil obligation person relying thereon.
has prescribed; Kinds:
2. Reimbursement of a third person for 1. Estoppel in Pais (by conduct)
a debt that has prescribed; a. Estoppel by silence
3. Restitution by minor after annulment b. Estoppel by
of contract; acceptance of
4. Delivery by minor of money or benefits
fungible thing in fulfillment of 2. Technical Estoppel
obligation; a. Estoppel by deed
5. Performance after action to enforce b. Estoppel by record
civil obligation has failed; c. Estoppel by judgment
6. Payment by heir of debt exceeding d. Estoppel by laches
value of property inherited; and
Elements:
4. applies in equity 4. applies at law
a. Conduct on part
of the
defendant, or of one under 5. not based on a 5. based on a fixed
fixed time time
whom he claims, giving rise
to
the situation of which complaint
institute a suit
c. Lack of knowledge or notice
on the part of the defendant
that the complainant would
assert the right on which he
bases his suit
d. Injury to the defendant in
the event relief is accorded
tot the complainant, or the
suit in not
held to be barred