Oblicon Memory Aid Ateneo
Oblicon Memory Aid Ateneo
Oblicon Memory Aid Ateneo
Art 100, RPC Every person criminally liable for a felony is also civilly liable
standard of care: that of a good father of a family unless the law or stipulation requires
another standard of care
2. Delivery of fruits
When does the right begin to exist : from the time to deliver arises
a) when there is no term/condition from the perfection of the contract
b) when there is a term/condition from the moment the term or condition arises
3. Delivery of accessories & accessions ( obligation to deliver determinate thing, even if the
stipulation does not mention delivery of accessories & accessions)
Accessories - those joined to or included with the principal for the latters better use,
perfection or enjoyment
When does right to fruits arise? from the time the obligation to deliver arises
a) Conditional from the moment the condition happens
b) With a term/period upon the expiration of the term/period
c) Simple from the perfection of the contract
Remedies
Obligation to give
(Real Obligation)
Specific Generic
SPECIFIC
PERFORMANCE
EQUIVALENT
PERFORMANCE
SUBSTITUTE
PERFORMANCE
RESCISSION/
CANCELLATION
Obligations to do
(Personal Obligation)
To do
Not to do
undo
the
things
X
already done
Can only be demanded
if obligation is not very
X
personal
Undo
the
things
X
already
done
at
debtor's expense
IRREGULARITY OF PERFORMANCE/BREACH
A. CAUSES ATTRIBUTABLE TO DEBTOR
1. Contravention of tenor
2. Delay/ Mora - Non performance with respect to time
Mora solvendi default on the part of the debtor;
2 kinds:
(1) Mora Solvendi Ex re default in real obligations
(2) Mora Solvendi Ex persona default in personal obligations
Elements:
(1) The obligation must be due, enforceable and already liquidated or
determinate in amount
(2) There must be non-performance
(3) There must be a demand, unless demand is not required
at
Extinguished
Improvement
specific performance
rescission &
damages
If it improved at the expense of
the debtor, he shall have no
other right than that granted to
the usufructuary. (art 1189)
Creditor to bear damages
Creditor gets it
(3). With a period future & certain, past & uncertain, payable when able
When stipulation says payable when able it is with a period,
remedy:
a) agreement among parties
b) court shall fix period of payment when parties unable to agree
Kinds:
a. Resolutory ( in diem ) takes effect at once but terminate upon arrival of the day
certain;
Day certain that which must necessarily come, although it may not be known when
b. Suspensive ( ex die ) takes effect on the day stipulated
WHEN COURTS MAY FIX PERIOD:
a) art 1197
b) art 1197, 2nd paragraph
c) art 1191, 3rd paragraph
d) art 1687, 2nd, 3rd, 4th sentence
e) art 1180
WHEN DEBTOR LOSES RIGHT TO PERIOD:
a. insolvency of debtor, unless security provided
b. did not deliver security
c. impaired security- thru fault or fortuitous event
d. violate undertaking in consideration of extension of period
e. attempts to abscond
(4). Facultative only one prestation has been agreed upon but another may be given in
substitution
Effect of loss or deterioration thru negligence, delay or fraud of obligor:
a) of thing intended as substitute - no liability
b) of the substitute after substitution is made with liability
(5). Alternative bound by different prestations but only one is due
Right of choice: General rule: right of choice belongs to debtor
a. the choice is with debtor
(1) If only 1 is left either because of fortuitous events or due to debtor's acts, perform
what is left. The effect is that the debtor loses the right of choice
(2) if the choice is limited because of the creditor's acts, the debtor has the right of
resolution and damages
(3) if all are lost due to debtor, the creditor is entitled to damages
(4) if some are lost, the debtor can choose from the remaining
b. the choice is with creditor
(1) if one or some are lost due to fortuitous event, the creditor chooses the remainder
(2) if one or some is lost because of the fault of debtor, the creditor may choose either
the remainder or the value of any which disappeared, and damages in either case
(3) if all is lost due to the debtor's fault, the creditor may choose the value of any if some
is lost due to debtor's fault, the creditor chooses the remainder
(4) if all is lost due to fortuitous event, obligation is extinguished
(5) if all is lost due to creditor's fault, the obligation is extinguished
Requisites for making the choice:
a) Made properly so that creditor or his agent will actually know
b) Made with full knowledge that a selection is indeed being made
c) Made voluntarily and freely
d) Made in due time before or upon maturity
e) Made to all proper persons
f)
FACULTATIVE
a) Only one thing is due but a substitute may be
given to render payment/fulfillment easy
b) If principal obligations is void and there is no
necessity of giving the substitute; nullity of P
carries with it nullity of S
c) If it is impossible to give all except c) If it is impossible to give the principal, the
one, the last one must still be given
substitute does not have to be given; if it is
impossible to give the substitute, the principal
must still be given
d) Right to choose may be given either d) The right of choice is given only to the debtor
to debtor or creditor
(6). Joint presumption when 2 or more creditors or 2 or more debtors concur in one and the
same obligation
Effects:
a. Demand on one produces delay only with respect to the debt
b. Interruption in payment by one does not benefit or prejudice the other
c. Vices of one debtor to creditor has no effect on the others
d. Insolvency of one debtor does not affect other debtors
fault of any debtor every one is responsible price, damage & interest
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it must have redounded to the obligee's benefit and only to the extent of such
benefit
ii.
it falls under art 1241, par 1,2,3 - the benefit is total so, performance is total
(c) anyone in possession of the credit - but will apply only if debt has not been
previously garnished
PAYMENT MADE TO AN INCAPACITATED PERSON , VALID IF:
1. Incapacitated person kept the thing delivered, or
2. Insofar as the payment has been beneficial to him
PAYMENT TO A 3RD PARTY NOT AUTHORIZED, VALID IF PROVED & ONLY TO
THE EXTENT OF BENEFIT;
PRESUMED IF:
1. After payment, 3rd person acquires the creditors rights
2. Creditor ratifies payment to 3rd person
3. By creditors conduct, debtor has been led to make the payment (estoppel)
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b) when application of payment is made by the party for whose benefit the
term has been constituted
5. Payment is not enough to extinguish all debts
HOW APPLICATION IS MADE:
1. Debtor makes the designation
2. If not, creditor makes it by so stating in the receipt that he issues unless there
is cause for invalidating the contract
3. If neither the debtor nor creditor has made the application or if the application is
not valid, then application, is made by operation of law
WHO MAKES APPLICATION:
General Rule: Debtor
Exception: Creditor
a) Debtor without protest accepts receipt in which creditor specified expressly and
unmistakably the obligation to which such payment was to be applied debtor in
this case renounced the right of choice
b) When monthly statements were made by the bank specifying the application and
the debtor signed said statements approving the status of her account as thus
sent to her monthly by the bank
IN CASE NO APPLICATION HAS BEEN MADE
1. Apply payment to the most onerous
2. If debts are of the same nature and burden, application shall be made to all
proportionately
b. Dacion en Pago mode of extinguishing an obligation whereby the debtor alienates
in favor of the creditor property for the satisfaction of monetary debt;
extinguish up to amount of property unless w/ contrary stipulation;
A special form of payment because 1 element of payment is missing: IDENTITY
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Kinds:
a. Principal accessory also condoned
b. accessory principal still outstanding
c. accessory oblig. Of pledge condoned;
presumption only, rebuttable
Requisites of Implied:
1. voluntary delivery presumption; when evidence of indebtedness is w/ debtor
presumed voluntarily delivery by creditor; rebuttable
2. effect of delivery of evidence of indebtedness is conclusion that debt is condoned
already conclusion;
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d. judicial set off; upon order of the court; needs pleading & proof; all requirements
must concur except liquidation
e. total when 2 debts are of the same amount
f.
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stipulation to contrary
d. if old obligation has condition, must be compatible with the new obligation; if new is w/o
condition deemed attached to new
e. if new obligation has condition
-
if resolutory: valid
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KINDS:
a. REAL/OBJECTIVE change object, cause/consideration or principal condition
b. PERSONAL/SUBJECTIVE
1. substituting person of debtor ( passive )
EXPROMISION; initiative is from 3rd person or new debtor; new debtor & creditor to
consent; old debtor released from obligation;
subject to full reimbursement & subrogation if made w/ consent of old debtor; if w/o
consent or against will , only beneficial reimbursement;
if new debtor is insolvent, not responsible since w/o his consent
DELEGACION; initiative of old debtor; all parties to consent; full reimbursement;
if insolvent new debtor not responsible old debtor because obligation extinguished
by valid novation unless:
insolvency already existing & of public knowledge or know to him at time of
delegacion
a. Delegante old debtor
b. Delegatario - creditor
c. Delegado new debtor
2. subrogating 3rd person to rights of creditor ( active )
a. conventional- agreement & consent of all parties; clearly established
b. legal- takes place by operation of law; no need for consent; not presumed except
as provided for in law:
presumed when1. creditor pays another preferred creditor even w/o debtors knowledge
2. 3rd person not interested in obligation pays w/ approval of debtor
3. person interested in fulfillment of obligation pays debt even w/o knowledge of
debtor
Difference from payment by 3rd person
1. debtor is not nec. Released from debt
Change of debtor
1. debtor is released
3. 1 obligation
4. 3rd person has no oblig. to pay if insolvent
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PART II CONTRACTS
Meeting of minds bet 2 parties whereby one binds himself with respect to other to give
something or render some service
PRINCIPAL CHARACTERISTICS:
1. Autonomy of wills parties may stipulate anything as long as not illegal, immoral, etc.
2. Mutuality performance or validity binds both parties; not left to will of one of parties
3. Obligatory Force parties are bound from perfection of contract:
a. fulfill what has been expressly stipulated
b. all consequences w/c may be in keeping with good faith, usage & law
4. Relativity binding only between the parties, their assigns, heirs; strangers cannot demand
enforcement
EXCEPTION TO RELATIVITY:
a. Accion pauliana
b. Accion directa
c. Stipulation pour autrui
REQUISITES OF STIPULATION POUR AUTRUI
(1) Parties must have clearly and deliberately conferred a favor upon a 3rd person
(2) The stipulation in favor of a 3rd person should be a part of, not the whole contract
(3) That the favorable stipulation should not be conditioned or compensated by any kind
of obligation whatsoever
(4) Neither of the contracting parties bears the legal representation or authorization of
3rd party
(5) The third person communicates his acceptance before revocation by the original
parties
d. Art 1312
e. Art 1314
REQUISITES OF ART 1312:
(1) Existence of a valid contract
(2) Knowledge of the contract by a 3rd person
(3) Interference by the 3rd person
KINDS OF CONTRACTS
As to perfection or formation:
1. consensual perfected by agreement of parties
2. real perfected by delivery ( commodatum, pledge, deposit )
3. formal/solemn perfected by conformity to essential formalities ( donation )
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As to cause
1. Onerous with valuable consideration
2. Gratuitous founded on liberality
3. Remunerative prestation is given for service previously rendered not as obligation
As to importance or dependence of one upon another
1. principal contract may stand alone
2. accessory depends on another contract for its existence; may not exist on its own
3. Preparatory not an end by itself; a means through which future contracts may be made
As to parties obliged:
1. Unilateral only one of the parties has an obligation
2. Bilateral both parties are required to render reciprocal prestations
As to name or designation:
1. Nominate
2. Innominate
a) Do ut des I give that you may give
b) Do ut facias I give that you may do
c) Facio ut des I do that you may give
d) Facio ut facias I do that you may do
STAGES IN A CONTRACT:
1. Preparation - negotiation
2. perfection/birth
3. consummation performance
ESSENTIAL ELEMENTS:
1. Consent meeting of minds between parties on subject matter & cause of contract;
concurrence of offer & acceptance
Requirements:
a. Plurality of subject
b. Capacity
c. Intelligence and free will
d. Manifestation of intent of parties
e. Cognition by the other party
f.
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Note: We follow the theory of cognition and not the theory of manifestation. Under
our civil law, the offer and acceptance concur only when the offeror comes to know,
and not when the offeree merely manifests his acceptance
ELEMENTS OF VALID OFFER
a. definite
b. complete
c. intentional
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EXCEPTIONS:
1. Upon reaching age of majority they ratify the same
2. They were entered unto by a guardian and the court having jurisdiction had approved
the same
3. They were contracts for necessities such as food, but here the persons who are
bound to give them support should pay therefor
4. Minor is estopped for having misrepresented his age and misled the other party
(when age is close to age of majority as in the Mercado v Espiritu & Sia Suan v
Alcantara cases)
Note: In the Sia Suan v Alcantara case, there is a strong dissent by J.Padilla to the
effect that the minor cannot be estopped if he is too young to give consent; one
that is too young to give consent is too young to be estopped. Subsequently, in
Braganza v Villa-Abrille, the dissent became the ruling. Minors could not be
estopped
DISQUALIFIED TO ENTER INTO CONTRACTS: ( contracts entered into are void )
1. those under civil interdiction
2. hospitalized lepers
3. prodigals
4. deaf and dumb who are unable to read and write
5. those who by reason of age, disease, weak mind and other similar causes, cannot
without outside aid, take care of themselves and manage their property, becoming
an easy prey for deceit and exploitation
CAUSES WHICH VITIATE FREEDOM
1. violence
REQUISITE:
a. Irresistable physical force
b. Such force is the determining cause for giving consent
2. Intimidation
REQUISITE:
a. Determining cause for the contract
b. Threatened act is unjust and unlawful
c. Real and serious
d. Produces a well grounded fear that the person making it will carry it over
3. undue influence
SIMULATED CONTRACTS
a. absolute no intention to be bound at all, fictitious only void from beginning
b. relative there is intention to be bound but concealed; concealed contract binds:
1. no prejudice to 3rd persons
2. not contrary to law, morals, etc.
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ABSENCE OF CAUSA
ILLEGALITY OF CAUSA
FALSITY OF CAUSA
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General Rule: contract is valid & binding in whatever form provided that 3 essential
requisites concur
Exception:
a. Law requires contract to be in some form for validity - donation & acceptance of real
property
b. Law requires contract to be in some form to be enforceable - Statute of Frauds; contract
is valid but right to enforce cannot be exercised; need ratification to be enforceable
c. Law requires contract to be in some form for convenience - contract is valid &
enforceable, needed only to bind 3rd parties
-
mutual
mistake of fact
b. unilateral
one party was mistaken
\
other either acted fraudulently or inequitably or knew but concealed
c. mistake by 3rd persons due to ignorance, lack of skill, negligence , bad faith of
drafter, clerk, typist
d. others specified by law to avoid frustration of true intent
REQUISITES:
1. there is a written instrument
2. there is meeting of minds
3. true intention not expressed in instrument
4. clear & convincing proof
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2. VOIDABLE CONTRACTS intrinsic defect; valid until annulled; defect is due to vice of
consent or legal incapacity
CHARACTERISTICS:
a. Effective until set aside
b. May be assailed or attacked only in an action for that purpose
c. Can be confirmed ( Note: CONFIRMATION IS THE PROPER TERM FOR CURING
THE DEFECT OF A VOIDABLE CONTRACT)
d. Can be assailed only by the party whose consent was defective or his heirs or assigns
WHAT CONTRACTS ARE VOIDABLE:
a. THOSE WHERE ONE OF THE PARTIES IS INCAPABLE OF GIVING CONSENT TO A
CONTRACT (legal incapacity)
(1) minors ( below 18 )
(2) insane unless acted in lucid interval
(3) deaf mute who cant read or write
(4) persons specially disqualified: civil interdiction
(5) in state of drunkenness
(6) in state of hypnotic spell
b. THOSE WHERE THE CONSENT IS VITIATED BY MISTAKE,
INTIMIDATION, UNDUE INFLUENCE OR FRAUD (vice of consent)
VIOLENCE,
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EFFECTS OF ANNULMENT:
1. Obligation to give mutual restitution
2. Obligation to do value of service
PRESCRIPTION IN ACTION FOR ANNULMENT OF VOIDABLE CONTRACTS:
Intimidation/Violence/undue Influence 4 years from time defect of consent ceases
Mistake/Fraud
4 years from time of discovery
Contracts
entered
into
by 4 years from time guardianship ceases
minors/incapacitated persons
3. UNENFORCEABLE CONTRACT valid but cannot compel its execution unless ratified;
extrinsic defect; produce legal efefcts only after ratified
KINDS/VARIETIES:
1. Unauthorized/No sufficient authority entered into in the name of another when:
a. no authority conferred
b. in excess of authority conferred ( ultra vires )
Note: Curable by RATIFICATION
2. Both parties incapable of giving consent -2 minor or 2 insane persons
Note: Curable by ACKNOWLEDGEMENT
3. Failure to comply with Statute of Frauds
a. Agreement to be performed within a year after making contract
b. Special promise to answer for debt, default or miscarriage of another
c. Agreement made in consideration of promise to marry
d. Agreement for sale of goods, chattels or things in action at price not less than 500;
exception: auction when recorded sale in sales book
e. Agreement for lease of property for more than 1 year & sale of real property
regardless of price
f.
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Imprescriptible
g. Anyone may invoke the nullity of the contract whenever its juridical effects are asserted
against him
KINDS OF VOID CONTRACT:
1) Those lacking in essential elements: no consent, no object, no cause (inexistent
ones) essential formalities are not complied with ( ex: donation propter nuptias
should conform to formalities of a donation to be valid )
(a) Those w/c are absolutely simulated or fictitious no cause
(b) Those which cause or object did not exist at the time of the transaction no
cause/object
(c) Those whose object is outside the commerce of man no object
(d) Those w/c contemplate an impossible service no object
(e) Those w/c intention of parties relative to principal object of the contract cannot be
ascertained
2) Prohibited by law
(f) Those expressly prohibited or declared void by law - Contracts w/c violate any legal
provision, whether it amounts to a crime or not
3) Illegal/Illicit ones Those whose cause, object or purpose is contrary to law, morals,
good customs, public order or public policy ; Ex: Contract to sell marijuana
KINDS OF ILLEGAL CONTRACTS
CONTRACT
CONSTITUTE CONTRACT
DOES
NOT
CRIMINAL OFFENSE
CONSTITUTE
CRIMINAL
OFFENSE BUT IS ILLEGAL OR
UNLAWFUL PER SE
Parties are in No
action
for
specific No
action
for
specific
pari delicto
performance
performance
No action for restitution on No action for restitution on
either side. The law will leave
either side. The law will leave
you where you are
you where you are
Both shall be prosecuted
No confiscation
Thing/price to be confiscated
in favor of government
Only one party No
action
for
specific No
action
for
specific
is guilty
performance
performance
Innocent party is entitled to Innocent party is entitled to
restitution
restitution
Guilty party is not entitled to Guilty party is not entitled to
restitution
restitution
Guilty party will be prosecuted
Instrument of crime will be
confiscated in favor of govt
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PARI DELICTO DOCTRINE -both parties are guilty, no action against each other; those
who come in equity must come with clean hands; applies only to illegal contracts & not to
inexistent contracts; does not apply when a superior public policy intervenes
EXCEPTION TO PARI DELICTO RULE
1. If purpose has not yet been accomplished & If damage has not been caused to any 3rd
person
Requisites:
a) contract is for an illegal purpose
b) contract must be repudiated by any of the parties before purpose is accomplished
or damage is caused to 3rd parties
c) court believes that public interest will be served by allowing recovery (discretionary
upon the court ) based on remorse; illegality is accomplished when parties entered
into contract; before it takes effect party w/c is remorseful prevents it
2. Where laws are issued to protect certain sectors: consumer protection, labor, usury law
a) Consumer protection if price of commodity is determined by statute, any person
paying an amount in excess of the maximum price allowed may recover such excess
b) Labor if law sets the minimum wage for laborers, any laborer who agreed to
receive less may still be entitled to recover the deficiency; if law set max working
hours & laborer who undertakes to work longer may demand additional
compensation
c) Interest paid in excess of the interest allowed by the usury law may be recovered by
debtor with interest from date of payment
3. If one party is incapacitated, courts may allow recovery of money, property delivered by
incapacitated person in the interest of justice; pari delicto cannot apply because an
incapacitated person does not know what he is entering into; unable to understand the
consequences of his own action
4. If agreement is not illegal per se but merely prohibited & prohibition is designated for the
protection of the plaintiff may recover what he has paid or delivered by virtue of public
policy
MUTUAL RESTITUTION IN VOID CONTRACTS
General Rule: parties should return to each other what they have given by virtue of the void
contract in case where nullity arose from defect in essential elements
1. return object of contract & fruits
2. return price plus interest
Exception: No recovery can be had in cases where nullity of contract arose from illegality of
contract where parties are in pari delicto;
except:
a. incapacitated not obliged to return what he gave but may recover what he has
given
b. other party is less guilty or not guilty
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