COURSE SYLLABUS IN OBLIGATIONS AND CONTRACTS.pdf

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  • COURSE SYLLABUS IN OBLIGATIONS AND CONTRACTS

    Goal: For the students:

    (1) To know the concept and significance of their rights and obligations

    in dealing with property relations;

    (2) To understand and apply the provisions of law in obligations and

    contracts through reading and understanding cases;

    (3) To handwrite legibly digested cases to prepare them for a written

    examination and for them to improve their writing strokes.

    I. PRESCRIPTION

    Articles 1106-1155

    1. Significant application of extinctive prescription

    2. How to set up the defense of prescription

    3. Doctrine of Laches

    4. Acquisitive prescription

    5. Distinction between prescription and laches

    6. Interruption of prescriptive period

    7. Actions which do not prescribe

    Cases: Mapa III vs. Guanzon, 77 SCRA; Nelson and Co., vs Lepanto Mining, Co, vs 18 SCRA 1040; Agra, et al., v. PNB. G.R. No. 133317, June 29, 1999; Cruz v. CA., February 18, 1991; PLDT v. Pingol, G.R. No. 182622, Sept. 8, 2010; Lourdes Suites v. Binarao, G.R. No. 204729, August 06, 2014; China Banking Corp., v. Commissioner of Internal Revenue, G.R. No. 172509, February 4, 2015

    II. OBLIGATIONS:

    A. General Provisions (Articles 1156 to 1162)

    1. Concept, Requisites, Classification of Obligations

    2. Sources of Obligations

    a. Obligations arising from law

    b. Obligations arising from Contracts

  • COURSE SYLLABUS IN PBLIGATIONS AND CONTRACTS Page 2 of 26

    c. Obligations arising from Quasi Contracts

    d. Obligations arising from Criminal Offenses

    e. Obligations arising from Quasi Delicts

    B. Nature and Effect of Obligations (Articles 1163 to 1178)

    1. Obligations to give

    a. Nature or right of creditor

    b. Rights of creditor in determinate obligations

    c. Rights of creditor in generic obligations

    d. Obligations of debtor in determinate obligations

    e. Obligations of a debtor in generic obligations

    2. Obligations to do; Effects of Breach

    3. Obligations not to do; Effects of Breach

    Breach of Obligations

    1. Voluntary breach through default or mora

    2. Voluntary breach through fault or dolo

    3. Voluntary Breach through Negligence or culpa

    4. Voluntary breach through contravention of tenor thereof

    Concept of Fortuitous Events

    1. Classification

    2. Effect upon obligation

    3. Essential Conditions

    4. Exception

    Usurious Transactions

    Extinguishment of Interests and Prior Installments

    Remedies of Creditors to Protect Credit

    1. Exhaustion of debtors property

    2. Accion subrogatoria

    3. Accion pauliana

    Cases: Samson vs CA, 238 SCRA 397; Nakpil vs CA, 144 Scra 596; Sia vs CA, 222SCRA 24; Adorable vs CA, 319 SCRA 2000; Fideldia, et al., v. Soncuan, et

  • COURSE SYLLABUS IN PBLIGATIONS AND CONTRACTS Page 3 of 26

    al., G.R. No. 151352, August 29, 2005; Jose et al., v. Novida et al., G.R. No. 177374, July 02, 2014; CCC Insurance Corp. v. Kawasaki Steel Corp.,et al., G. R. No. 15616, June 22, 2015;

    C. DIFFERENT KINDS OF OBLIGATIONS (Articles 1179 to 1230)

    1. Pure and Conditional Obligations (Articles 1179 to 1192)

    a. Pure obligation

    b. Conditional obligations

    c. Classification of conditions aa. Suspensive and Resolutory conditions

    bb. Potestative, Casual and Mixed conditions

    cc. Possible and Impossible conditions

    dd. Positive and negative conditions

    d. Constructive fulfillment of suspensive conditions

    Effect of suspensive conditions before fulfillment

    Effect of suspensive condition after fulfillment

    Effect of loss, deterioration or improvement

    e. Effect of resolutory conditions

    Before fulfillment

    After fulfillment

    f. Concept of reciprocal obligations

    Necessity of judicial action

    Nature of breach

    Alternative remedies of injured party

    Damages to be awarded

    Effect of rescission

    Effect upon third person

    Effect of breach by both parties

    Cases: Lao Lim vs CA, 191 SCRA 150; Patente vs Omega, G.R. No. L-4433,

    May 29, 1953, 93 Phil 218; Angeles vs CA, 250 SCRA 223; UFC vs CA, 33

    SCRA 1; Ong vs CA, 310 SCRA 1999

  • COURSE SYLLABUS IN PBLIGATIONS AND CONTRACTS Page 4 of 26

    2. Obligations With a Period

    a. Concept of term or a period

    Distinguished from condition

    Classification of a term or a period

    Effect of fortuitous event

    b. Effect of advanced payment or delivery

    c. Benefit of term or period

    d. Judicial term or period

    When court may fix term

    Nature of action

    Effect of judicial period

    c. Extinguishment of debtors right to period

    3. Alternative and Facultative Obligations

    a. Concept

    b. Right of choice in alternative obligations

    Limitations upon right of choice

    When choice takes effect

    Effect upon obligation

    When only one prestation is practicable

    When choice is rendered impossible

    c. Effects of loss of objects of obligation

    If right belongs to the debtor

    If right belongs to the creditor

    d. Nature of facultative obligations

    Distinguished from alternative obligations

    When substitution take effect

    Effect of loss of substitute

    4. Joint and Solidary Obligations

    a. Concept

    b. Nature of Collective Obligations in general

  • COURSE SYLLABUS IN PBLIGATIONS AND CONTRACTS Page 5 of 26

    c. Joint Divisible obligations

    d. Joint Indivisble obligations

    Effect of breach

    Effect of insolvency of a debtor

    Interruption of period of prescription

    e. Indivisibility and solidarity

    Kinds of solidarity

    Effect of active solidarity in general

    Effect of passive solidarity in general

    f. Effect of varied conditions or periods

    Effect of beneficial and prejudicial acts

    Effect of assignment of rights

    Effect of demand by a creditor

    Effect of Novation

    Effect of compensation and confusion

    Effect of remission

    Effect of payment to a creditor

    Effect of demand upon a debtor

    Effect of payment by a debtor

    Effect of loss or impossibility of performance

    g. Defense available to a solidary debtor

    h.

    Cases: Lakarge Cement Phils. Vs. Continental Cement Corp., et al., G.R. No.

    155173, Nov. 23, 2004; Agoncillo vs Javier, 38 Phil. 424; Ynchausti vs. Yulo,

    34 Phils. 978

    5. Divisible and Indivisible Obligations

    a. Concept

    Relation to divisibility and indivisibility of things

    b. Effect of divisible or indivisible obligations

    Breach of joint indivisible obligations

    c. Determination of divisibility and indivisibility

  • COURSE SYLLABUS IN PBLIGATIONS AND CONTRACTS Page 6 of 26

    In obligations to give

    In obligations to do

    In obligations not to do

    6. Obligations with Penal Clause

    a. Concept

    Purpose of penalty

    Kinds of penalty

    b. Effect of penalty; general rule

    Exceptions

    Enforceability of penalty

    c. Limitation upon right of debtor

    Limitation upon right of creditor

    d. Proof of actual damages

    e. When penalty may be reduced

    f. Nullity of obligation or penalty; effect

    Cases: Garcia vs CA, 167 SCRA 815; Insular Bank of Asia and America vs. Sps.

    Salazar, 159, SCRA, 111; Umali vs Miclat, 105 Phil. 1109)

    D. Extinguishment of Obligations

    General provisions

    Modes of extinguishing obligations

    1. Payment or performance

    Concept

    When obligation is paid or performed

    Who may pay obligation

    aa. Payment by a third person

    Right of creditor

    Right of third person

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    Right of reimbursement

    Right of subrogation

    Gratuitous payments

    bb. Capacity to make payment

    cc. To whom payment must be made

    Persons authorized to receive payment

    Payment to unauthorized persons

    Exceptions

    Payment to incapacitated persons

    Payment to third persons

    Payment to possessors of credit

    Payment after judicial order of retention 1243

    dd. What must be paid 1246

    Effect of dation in payment

    Effect is object is generic

    ee.Expenses of payment 1247

    ff. Character of payment

    gg. Rule in monetary obligations 1249

    Effect of R.A. Nos. 529 and 4100

    Meaning of legal tender

    Payments with negotiable paper

    hh. Effect of extra ordinary inflation and deflation

    ii. Place of payment.

    B. Application of payment (Articles 1252 to 1254)

    a. Concept (1252)

    Requisites

    Right of debtor to make applications

    Exception

    Time when right is exercised

    b. Limitation upon right to apply payment (1253)

    c. Legal application of payment (1254)

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    When debts are not of the same burden

    When debts are of same burden

    C. Payment by cession (1255)

    Concept

    Requisites

    Kinds

    Distinguished from dation in payment

    Effect

    Cases: Filinvest Credit Corp., vs. Phil. Acetylene Co., 197 Phil. 394;

    haw Pia vs. China Banking Corp., 80 Phil. 604;

    D. Tender of Payment and Consignation (Articles 1256-1261)

    a. Concept (1256 1258)

    Distinctions

    General requisites of consignation

    Special requisites of Consignation

    Subject matter of consignation

    b. Expenses of consignation (1259)

    c. Effects of consignation (1260-1261)

    Effect of withdrawal

    Cases: PNB vs Teves, L-8076, 8813, Dec. 14, 1951; New pacific Timber

    and Supply Co. vs Judge Seneris, 101 SCRA 686; Singson vs. Caltex

    [Inc.], G.R. No. 1327798, Oct. 4, 2000; Hubonhua vs CA, G.R. Nos.

    95897 and 102604, Dec. 14, 1999; Velasco vs. Manila Electric Co., 42

    SCRA 556; Lantion vs NLRC, 181 SCRA 513; Roman Catholic Bishop of

    Malolos, Inc. vs IAC, 191 SCRA 411;

    2. Loss of the thing due (Articles 1262 1269)

    a. Concept

    Effect of loss in determinate obligation to give (1262)

    Effect of fortuitous event

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    Exception

    b. Effect of loss in generic obligation to give (1263)

    Effect of partial loss (1264)

    c. Rule if things is in debtors possession (1265)

    d. Effect of impossibility of performance in obligation (1266)

    Effect

    Effect in obligations to do

    e. Effect of relative impossibility (1267)

    f. Rule if obligations arises from criminal offense (1268)

    g. Effect of extinguishment of obligations

    Case: Naga Telephone Co., et al. vs CA, et al., Feb. 24, 1994

    3. Condonation or remission of the debt (1270 -1274)

    a. Concept

    Requisites

    Kinds

    Gratuitous character of remission (1270)

    Necessity of acceptance by debtor

    Applicability of rules on donations

    Extent of remission

    Form of express remission

    Form of implied remission

    b. Effect of delivery of evidence of credit to debtor (1272)

    c. Effect of remission in general (1273 1274)

    Effect upon accessory obligation

    Rule in pledge

    4. Confusion or merger of rights (Articles 1275 1277)

    a. Concept of Confusion (1275)

    Requisites

    Kinds

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    b. Effect upon accessory obligations (1276)

    c. Effect upon collective obligation (1277)

    Effect of revocation of confusion

    Cases: Testate Estate of Mota vs. Serra, 40 Phil 464; Yek Tong Lin Fire

    and Marine Insurance Co. vs Yusingco, 46 Phil 473

    5. Compensation (Articles 1278 1290)

    a. Concept of Compensation (1278)

    Distinguish from payment

    Distinguish from confusion

    Distinguish from counterclaim

    b. Kinds of compensation

    c. Requisites of compensation (1279)

    As to parties

    Bound as principals

    As to objects

    As to maturity

    As to liquidation and demandability

    As to claims of third persons

    d. Right of guarantor to set up compensation (1280)

    e. Voluntary compensation (1281-1282)

    f. Judicial compensation (1283)

    g. Rules in case of rescissible or voidable debts (1284)

    h. Effect of assignment of rights (1285)

    When compensation has taken place

    When compensation has not taken place

    With consent of debtor

    With knowledge, but without consent of debtor

    Without knowledge of debtor

    i. Debts which cannot be compensated (1286 1288)

    j. Effect of compensation 91289 1290)

    When compensation takes effect

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    Case: Gullas vs National Bank, 62 Phil. 519

    6. Novation (Articles 1291 1304)

    a. Concept (1291)

    Requisites

    Kinds

    b. Form of extinguishment (1292)

    Express novation

    Implied novation

    c. Novation by substitution of debtor (1293)

    Necessity of creditors consent

    Effect of payment by new debtor

    d. Effect of payment by new debtor (1294 -1295)

    If substitution is by expromision

    If substitution is by delegacion

    e. Effect upon accessory obligations (1296)

    f. Effect if new and /or old obligations are void

    Rule id old obligation is voidable

    g. Effect if old obligation is conditional (1299)

    h. Novation by subrogation (1300)

    i. Conventional subrogation (1301)

    j. Legal subrogation (1302)

    k. Effect of total subrogation (1303-1304)

    Effect of partial subrogation

    Cases: Emilio Uraca, et al., vs CA, et al., G.R. No. 115158, September 5,

    1997; Reyes vs CA, et al., G.R. No. 120817, Nov. 4, 1996

    III. CONTRACTS

    A. General Provisions (Articles 1305 1317)

    1. Concept

    a. Characteristics (1305)

  • COURSE SYLLABUS IN PBLIGATIONS AND CONTRACTS Page 12 of 26

    Elements

    Stages

    Classification

    Auto Contracts

    Contracts of Adhesion

    b. Freedom to Contract (1306)

    Validity of stipulations

    Limitations on stipulations

    c. Innominate Contracts (1307)

    Analogous contracts

    d. Mutuality of Contracts (1308)

    Unilateral cancellation

    Express agreement

    e. Relativity of contracts (1311)

    Parties bound by contract

    Third persons not bound

    Enforcement of contract

    Annulment of contracts

    Contracts bind heirs

    Stipulations for third persons

    Who may revoke

    Collective contracts

    f. Real rights in property (1312)

    g. Contracts in fraud of creditors (1313)

    h. Interference by third persons (1314)

    Extent of liability

    i. Perfection of consensual contracts (1315)

    Binding effect of contract

    j. Perfection of real contracts (1316)

    k. Ratification necessary (1317)

    Express or implied

    Effect retroactive

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    Status before ratification

    Liability of representative

    Cases: Spa pascual vs Ramos, G.R. No. 144712, July 4, 2002; Cuizon vs

    CA, 260 SCRA 645; Ferrazini vs. Gsell, 34 Phil. 697; Del Castillo vs

    Richmond, 45 Phil. 697; Cui vs Arellano University, 112 Phil 135; Sy

    Suan vs. Regala, 105 Phil 1024; Constantino vs Espiritu, 39 SCRA 206

    2. Essential Requisites of Contracts (Articles 1318 1385)

    a. General provisions (1318)

    Parties to contract

    Capacity of parties

    Want of counsel

    CONSENT

    b. Concept of consent (1319)

    Elements

    Forms of consent

    Manifestation of consent

    Offer by one party (definite, complete, international, mental)

    Acceptance by offeree

    Amplified acceptance

    Complex offers

    Simultaneous offers

    Successive agreements

    Knowledge of offeror (Through intermediaries, by

    correspondence, by telephone)

    Effect of silence

    Withdrawal of offer

    Lapse of time

    Revocation of acceptance

    New contract before acceptance

    Public offers

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    c. Implied acceptance (1320)

    Waiver of acceptance

    Effect of silence

    d. Right of offeror (1321)

    Period for acceptance

    Manner of acceptance

    e. Contract through intermediary (1322)

    f. Period of acceptance (1324)

    Withdrawal of offer

    Crossing revocation and acceptance

    Effect of delay

    Contract of option

    g. Sales advertisements (1325)

    h. Effect of bidding (1326)

    Judicial sales

    i. Effect of incapacity (1327)

    Unemancipated minors

    Estoppel

    Emancipation

    Insane persons

    Deaf mutes

    j. Lucid intervals (1328)

    Liquor and drugs

    Hypnotism and somnambulism

    k. Other causes of incapacity (1329)

    Special disqualifications

    l. Requisites of consent (1330)

    Defects of the will

    Discretion of courts

    m. Concept of error (1331)

    Mistake of fact or law

    As to object

  • COURSE SYLLABUS IN PBLIGATIONS AND CONTRACTS Page 15 of 26

    Nature of contract

    Principal conditions

    Accidental, accessory conditions

    Effect of intent

    Error as to person

    Solvency of the party

    Motive of the party

    Error as to account

    Account and quantity

    Correction of account

    Eror as to absis of contract

    Error as to estimates

    Error in unilateral decision

    Liability for error

    n. Fraud or mistake alleged (1332)

    o. Inexcusable error (1333)

    p. Error of law (1334)

    Legal effects of contracts

    Error as to the nature of contract

    q. Violence and intimidation distinguished (1335)

    Scope and test

    Requisites of violence

    Requisites of intimidation

    Unjust act

    Enforcement of claim

    When improper

    Serious evil or wrong

    Imminence of evil

    Object of evil

    Nature of injury

    Reasonable fear

    Respect and obedience

  • COURSE SYLLABUS IN PBLIGATIONS AND CONTRACTS Page 16 of 26

    Cause of consent

    Moral coercion

    r. Duress by third person (1336)

    s. Undue influence (1337)

    Circumstances to be considered

    Employed by third persons

    Contracts of adhesion

    t. Concept of fraud (1338)

    Insidious words and machinations

    Kinds of fraud

    Compared with error

    Requisites of fraud

    Effects of fraud

    Proof of fraud

    u. Concealment of fraud (1339)

    Innocent non-disclosures

    v. Tolerated fraud (1340)

    Opportunity to know

    w. Expression of opinion (1341)

    Made by expert

    x. Fraud by third person (1342)

    Mutual error

    Compared with violence

    y. Magnitude of fraud (1343)

    Determining cause

    Fraud by one party on another

    Mutual fraud

    Plurality of subjects

    Dolo incidente

    z. Definition of simulation (1345)

    Absolute simulation

    Relative simulation

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    aa. Absolute simulation (1346)

    Recovery under contract

    Distinguished from fraudulent alienation

    Simulation presumed

    Relative simulation

    Effect as to third persons

    Acquisition of title

    Cases: ABS-CBN vs CA et al., 301 SCRA 572; Palattao vs. CA, et al., G.R. No. 131726, May 7, 2002; National Commercial Bank of Saudi Arabia vs. CA, G.R. No. 1242467, January 17, 2005; DBP vs Perez, G.R. No. 14854, Nov. 11,. 2004; Sanchez, vs Rigos, 45 SCRA 368; Mercado and Mercado vs. espiritu, 37 Phil. 125; Braganza vs Villa Abrille, 105 Phil 456; Songco vs Sellner, 37 Phil. 254; Rosario, et al. v. CA, et al., G.R. No. 127005, July 19, 1999; Lee and Asiatrust Development Bank v. Bangkok Bank Public Co., G.R. No. 173349, February 09, 2011; Philtranco Service Enterprises, Inc., v. Paras and Inland Railways, Inc., et al., G.R. No. 161909, April 25, 2012; Paz v. Environmental Universality. Inc., G.R. No. 203993, April 20, 2015;

    OBJECTS OF CONTRACTS

    a. Concept of object

    Requisites

    Within commerce of man (1347)

    Existence of object

    Future inheritance

    Not part of inheritance

    Contrary to law or morals

    Prestation of third party

    b. Impossible things or services (1348)

    Liability for damages

    Partly impossible

    Difficulty of performance

  • COURSE SYLLABUS IN PBLIGATIONS AND CONTRACTS Page 18 of 26

    c. Determination of kind (1349)

    Determination of quantity

    Case: Blas vs Santos, 111Phil. 503;

    CAUSE OF CONTRACT

    a. Concept

    Distinguished from object

    Distinguished from consideration

    Distinguished from motive

    Requisite of cause

    Onerous contracts (1350)

    Mutual promises

    Accessory contracts

    Accommodation parties

    Remuneratory contracts

    Contract taken as a whole

    b. Purpose of contract (1375)

    c. Usages or customs (1376)

    d. Obscure terms construed (1377)

    Contracts of adhesion

    e. Reciprocity of interests (1378)

    Least transmission of rights

    f. Partly written contract (1379)

    Natural right

    Cases: Phil. Banking Corp. vs Lui She, 21 SCRA 52; Villaroel vs Estrada,

    71 Phil. 14;

    Mactal vs melegrito, 111 Phil. 363;

    B. Form of Contracts

    a. Intent over form (1356)

    Contracts valid in any form

    Formalities required by law

    For validity of contract

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    Execution of instrument

    b. Compliance with formality (1357)

    Causes of action

    Survival of actions

    c. Writing not for validity (1358)

    Case: Dauden-Hernaez vs Delos Angeles, 27 SCRA 1276;

    C. Reformation of Instruments

    a. Basis of reformation (1359)

    Requisites of reformation

    Distinguished from annulment

    Operation and effect

    Effect on statutes of frauds

    b. Requisites of mistake (1361)

    Mistake of fact

    Must be mutual

    Effect of negligence

    c. Mistake of one party (1362)

    d. Mistake of draftsman (1363, 1364)

    e. Deed held to be mortgage (1365)

    f. Donations and wills (1366)

    g. Void agreements (1367)

    Cases: Huibonhua vs COA, 320 SCRA 625; Bentir and Formida vs Judge

    Leanda and Leyte Gulf Traders, Inc., G.R. No. 128991, April 12, 2000; Rita

    Sarming, et al., vs Dy, et al., G.R. No. 133643, June 6, 2002;

    D. Interpretation of Contracts

    a. Interpretation of terms (1370)

    Intent of the parties

    Proof of intention

    Reformation of instruments

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    b. Determining intention (1371)

    c. Scope of general terms (1372)

    d. Validity favored (1373)

    e. Contract taken as a whole (1374)

    f. Purpose of contract (1375)

    g. Usages or customs (1376)

    h. Obscure terms construed (1377)

    Contracts of adhesion

    i. Reciprocity of interests (1378)

    Least transmission of right

    j. Partly written contract (1379)

    Natural right

    E. Rescissible Contracts

    a. Defective contracts

    Relative ineffectiveness

    Concept of rescission (1380)

    Nature of contract

    Rescission in reciprocal obligations

    Rescission and mutual dissent

    Requisites of rescission

    Direct proceedings to rescind

    b. Rescission on legal grounds 91381)

    Contracts with lesion

    Contracts of guardians

    Contracts for absentees

    Contracts in fraud of creditors

    Action pauliana and simulation

    Requisites for rescission

    Existence of credit

    Priority of credit

  • COURSE SYLLABUS IN PBLIGATIONS AND CONTRACTS Page 21 of 26

    Exception

    Creditors included

    Fraudulent conveyance

    Test of fraud

    Signs of fraud

    As to transferee

    c. Payment when insolvent (1382)

    d. No other remedy (1383)

    e. Extent of rescission (1384)

    Who may bring action

    f. Mutual restitution (1385)

    Transfer to third person

    Right of transferee

    Transferee in good faith

    Transferee in bad faith

    Right to damages

    g. Fraud presumed (1387)

    Rebuttal of presumption

    Proof of fraud

    Effect of fraud

    h. Subsequent transfers (1388)

    Bad faith of transferee

    i. Minority of party (1389)

    Cases: Rosencor development Corporation and Rene Joaquin vs Paterno

    Inquing, et al., G.R. No. 140479, March 8, 2001; Khe Hong Cheng vs CA, G.R.

    No. 144169, March 28, 2001; Guzman, Bocaling and Co., Inc. vs Bonnevie,

    206 SCRA 668; Concepcion vs Sta Anna, 87 Phil.787; Rivera vs. Li Tam and

    Co., 4 SCRA 1072;

    Oria vs MacMicking, 21 Phil. 243

    F. VOIDABLE CONTRACTS

    a. Concept

  • COURSE SYLLABUS IN PBLIGATIONS AND CONTRACTS Page 22 of 26

    Rescission and annulment

    Grounds for annulment

    Incapacity to consent

    How annulment obtained

    b. Prescription of nullity (1391)

    Application of period

    Registered documents

    c. Confirmation and ratification (1392)

    Ratification and acknowledgment

    Requisites of ratification

    Transmission of right

    d. Express ratification (1393)

    Implied ratification

    e. Exercise of ratification (1394)

    f. Effect of ratification (1396)

    Retroactivity of ratification

    g. Personal requisites (1397)

    Incapacitated person at fault

    Representation of capacity

    h. Mutual restitution (1398)

    Who may invoke restitution?

    Contracts not covered

    Restitution of fruits and interest

    Liability for damages

    i. Incapacitated party (1399)

    Profit by incapacitated

    Restitution by capacitated party

    j. Loss of thing by plaintiff (1401-1402)

    Loss of thing by defendant

    Loss of fruits and accessories

    Cases: Bael vs IAC, 169 SCRA 617; Braganza vs Villa Abrille, 105 Phil. 456; De

    Santos vs City of Manila, 45 SCRA 409; Talag vs Tankengco, 92 Phil. 1066

  • COURSE SYLLABUS IN PBLIGATIONS AND CONTRACTS Page 23 of 26

    G. UNENFORCEABLE CONTRACTS

    a. Concept and distinctions

    b. Unauthorized contracts (1403)

    Statute of frauds

    Purpose of statute

    Validity of contracts

    Action to enforce

    Note or memorandum

    Performance within one year

    Guaranty of anothers debt

    Test of guaranty

    In consideration of marriage

    Sale of personalty

    Separable contracts

    Partial delivery or payment

    Lease or sale of realty

    Description of property

    Representation as to credit

    Parties incapacitated

    c. Ratification validates contracts (1404)

    d. Failure to object (1405)

    Acceptance of benefits

    e. Defense is personal (1408)

    Cases: Rosencor Development Corp. vs Inquing, 354 SCRA 119; Factoran vs

    Sabanal, 81 Phil. 512; Diana vs Macalibo, 75 Phil. 71; Western Minadanao

    Lumber Co., vs Medalla, 79 SCRA 702; Shoemaker vs La Tondena, 68 Phil

    24;

    H. VOID OR INEXISTENT CONTRACTS

    a. Void or inexistent contract (1409)

    Characteristics of void contracts

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    Parties affected

    Action on contract

    Ratification

    b. Defect incurable (1410)

    Nature of action

    c. Illegality common to parties (1411,1412)

    Only one party guilty

    Cases of usury

    d. Recovery of usurious interest (1413)

    e. Repudiation of illegal contracts (1414)

    f. Divisible or separable contracts (1420)

    Nature of contracts

    Intention of parties

    g. Nullity as defense (1421)

    Cases: Liguez, vs CA, 102 Phil. 577; Mapalo vs Mapalo, 17 SCRA 114;

    Rodriguez vs Rodriguez, 20 SCRA 908; Angel Jose Warehousing Co., vs

    Chelda Enterprises, 23 SCRA 119; Development Bank of the Phil. Vs Perez,

    G.R. No. 148541, Nov. 11, 2004; Phil. Banking Corp., vs Lui She, 21 SCRA 52

    I. NATURAL OBLIGATIONS

    a. Basis of natural obligations

    b. Types of obligations (1423)

    Concept of natural obligations

    Natural and imperfect

    Natural and moral

    Fulfillment of natural obligations

    Voluntary fulfillment

    Conversion to civil obligation

    Guaranty of natural obligations

    Illicit obligations

    c. Restitution by minor (1426)

    Payment by minor

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    Good faith of the creditor

    Nature of thing

    Non-consummable thing

    d. Nullity due to form (1430)

    J. ESTOPPEL

    a. Principle of estoppels (1431)

    Concept of estoppels

    Illegal act excluded

    Distinguished from waiver

    Distinguished from ratification

    Representations and positive acts

    Admissions

    Silence or inaction

    Nature of laches

    Laches and prescription distinguished

    Reliance and belief

    b. Effect of provision (1432)

    c. Kinds of estoppels (1433)

    Elements of estoppels in pais

    d. Subsequent acquisition of title (1434)

    e. Estoppels of tenant (1435, 1436)

    f. Estoppels against owner (1437)

    g. Estoppels from benefits (1438)

    h. Parties affected (1439)

    No estoppel against government

    Cases: Maneclang vs Buan, 208 SCRA 179; Heirs of Lacamen vs Heirs of

    Laruan, 65 SCRA 605; Nielson & Co., Inc., vs lepanto Consolidated Mining

    Co., 18 SCRA 1040; pnb VS Barreto, 52 Phil 818

    K. TRUSTS

    a. Characteristics of trusts

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    Distinguished from other relations

    b. Mayorazgo as trust (1440)

    Nature of trustees liability

    Trust property

    Existence of cestui que trust

    c. Classification of trusts (1441)

    Resulting and constructive

    d. General law of trust

    EXPRESS TRUST

    a. Proof of express trust (1443)

    b. No particular form required (1444)

    c. Want of trustee (1445)

    IMPLIED TRUST

    a. Trust from payment (1447, 1448)

    Exceptions to rule

    b. Inheritance in trust (1449-1451)

    c. Title in one co-owner (1452)

    d. Trust based on promise (1453)

    e. Investment of trust funds (1454-1545)

    Acquisition of trust property

    f. Mutual mistake (1456)

    Unilateral mistake

    Cases: Cuaycong vs Cuaycong, 21 SCRA 1192; Fabian vs Fabian, 21 SCRA

    213; Sotto vs Teves, 86 SCRA 154; Alarcon vs Bidin, 120 SCRA 390; Caragay-

    Lagno vs CA, 133 SCRA 718; Tongoy vs CA, 123 SCRA 99; Bueno vs Reyes, 27

    SCRA 1179;

    References: Obligations and Contracts by Jurado, Tolentino, Agpalo

    Prepared by Judge CYNTHIA MARTINEZ FLORENDO