Art. 1106 Art. 1107 Art. 1108 Art. 1109 Art. 1110 Art. 1111 Art.1112 Art. 1113 Art. 1114 Art. 1115 Art. 1116 Art. 1117 Art. 1118 Art. 1119 Art. 1120 Art. 1121 Art. 1122 Art. 1123 Art. 1124 Art. 1125 Art. 1126 Art. 1127 Art. 1128 Art. 1129 Art. 1130 Art. 1131 Art. 1132 Art. 1133 Art. 1134 Art. 1135 Art. 1136 Art. 1137 Art. 1138 Art. 1139 Art. 1140 Art. 1141 Art. 1142 Art. 1143 Art. 1144 Art. 1145 Art. 1146 Art. 1147 Art. 1148 Art. 1149 Art. 1150 Art. 1151 Art. 1152 Art. 1153 Prescription – acquisition/loss through lapse of time Persons capacitated to acquire through prescription; minors and incapacitated Persons against whom prescription run No prescription between husband and wife, parents and children (minority/insanity), guardians and wards Against a married woman Prescription obtained by co-proprietor/co-partner Renunciation of prescription already obtained Prescription: things within the commerce of man; not non-patrimonial property of state Prescription despite renunciation of debtor (eg. guarantor’s right) No prejudice to other provisions Transitory provision: shorter period Acquisitive prescription: ordinary (possession in good faith + just title), extraordinary Adverse possession: in concept of an owner, public, peaceful, uninterrupted Possession: license or tolerance of owner – no prescription Interruption: Naturally or civilly Natural interruption – more than one year, not revived if same adverse claimant Natural interruption (effect): one year or less – in favour of prescription Civil interruption – receipt of judicial summons Judicial summons deemed not issued Possessor’s recognition of owner’s rights – interruption Title recorded in Register’s of Property, Land Registration Act Good faith – reasonable belief that the person from whom he received the property is the owner Conditions of good faith Just title – adverse claim of possession through modes recognized by law Title – true and valid Title must be proven Prescription of movables: ordinary – 4years, extraordinary – 8 years; owner’s right to recover No prescription for movables possessed through a crime Immovable property: ordinary prescription – 10 years Discrepancy in measurement of the land/area – prescription will be based on possession Possession in wartime/ civil courts closed – in favour of prescription Immovables: extraordinary prescription – 30 years Computation of time Prescription of action (civil actions) Action to recover movables – 8 years (unless property already prescribed in 4 years – Art. 1132) Action to recover immovables – 10 years ( unless property already prescribed in 10years – Art. 1134) Mortgage action – 10 years Actions which do not prescribed: right of way, and abate a public or private nuisance Actions prescribing in 10 years – written contract, obligation by law, judgment Actions prescribing in 6 years – oral contract, quasi-contract Actions prescribing in 4 years – injury to the rights of the plaintiff, quasi-delict Actions prescribing in 1 year- forcible entry and detainer, defamation Art. 1140-47 without prejudice to other provisions, code of commerce, special laws Actions with no fixed period – 5 years Prescription, without provision to the contrary, shall be counter from the day it may be brought Action to enforce obligation to pay principal with interest or annuity – from day of last payment Action to enforce obligation by virtue of judgment – from day of finality of judgment Action for accounting – from the day accounting ceased; result of accounting – from day result recognized by interested parties written acknowledgment of debt Obligation Sources of obligation (law. recover payment by mistake Rules in case of improvement. deterioration.Art. 1188 Art. 1191 Art. specific. 1174 Art. 1157 Art. if can’t be determined. loss or deterioration Condition: purpose is for extinguishment of obligation to give – return what they have received Rescission of contract – implied in reciprocal obligation. obligation with resolutory condition – demandable at once To pay when means permit him to do so – deemed to be with a period (court) Conditional obligation Fulfilment of condition depending on will of debtor – obligation void. 1195 Art. without prejudice to 3 persons st Both parties breached the contract: 1 infractor. 1154 Art. 1189 Art. 1183 Art. 1175 Art. indeterminate: compliance at the expense of debtor. cases when no demand is necessary Damages – fraud. 1178 Art. 1158 Art. 1194 Art. quasi-delicts Law – never presumed (clear. 1171 Art. 1166 Art. 1167 Art. delay. 1162 Art. 1192 Art. 1189 Anything paid by mistake before due – may be recovered with fruits and interests Period – presumed as established for creditor and debtor unless otherwise stated Art. Obligations with a period Loss. 1182 Art. 1193 Art. 1184 Art. reciprocal obligation – mutual compensation Creditor – preservation of right prior fulfilment. creditor – choice between rescission or rd fulfilment +damages. contravention of tenor of contract Fraud in the performance of obligation – waiver for future fraud is void Negligence Negligence in the omission of diligence with bad faith = fraud Fortuitous event Usurious transactions Receipt of principal without reservation – presumption: interest has been paid Receipt of later instalment – presumption: prior instalments has been paid Creditors may go against debtors of the debtors Rights acquired by virtue of obligation – transmissible Pure obligation. 1161 Art. exact) Contracts – need compliance in good faith Quasi-contracts Crimes – civil liability attaching to crimes Quasi-delicts (torts) – negligence resulting to damages Duty to take care – diligence of a good father of a family Rights to the fruit Determinate: specific performance to deliver + damages. 1165 Art. 1177 Art. 1156 Art. written extrajudicial demand. 1176 Art. 1169 Art. 1180 Art. chance and will of third person Impossible obligation – annul obligation save for parts of divisible obligation Condition: at a determinate time – happening – extinguish Condition: at a determinate time – not to happen – effective Acts of prevention by obligor – constructive fulfilment Effects of suspensive condition– retroact to the day of constitution of obligation – appropriate fruits and interests. contracts. not required to be done – may be undone Obligation not to do. 1185 Art. 1190 Art. 1196 . exting. crimes. 1159 Art. but was done – undo at obligors expense Delay – from time oblige demands . 1168 Art.bear own damages. 1173 Art. 1163 Art. quasi-contracts. 1164 Art. 1179 Art. 1170 Art. 1160 Art. improvement – Art. 1172 Art. 1155 Time when oblige was prevented by fortuitous event from enforcing his rights – not counted against him Prescription of action interrupted: case filed in court. 1186 Art. 1181 Art. negligence. obligor delays or promised the object to 2 persons: responsible for fortuitous events until delivery (exception to the rule on fortuitous event) Delivery of determinate – includes accessions and accessories Failure to do – done at his cost. 1187 Art. 1211 Art. not to do – character of obligation Penal clause – penalty – substitute indemnity + interest. 1198 Art. 1232 Art. minors can . 1233 Art. 1229 Art. 1209 Art. 1202 Art. or by law of nature of obligation Absent stipulation/law/nature – joint obligation – divided into shares Joint indivisible obligation – creditors must act collectively Indivisibility of obligation does not give rise to solidarity and vice versa Solidary – even if bound is different manner. if demand was made. no right to choose: impossible. those ready to pay shall no contribute Indivisible: definite things insusceptible of partial performance. 1227 Art. not simultaneous with performance Proof of actual damages – not necessary Judge – equitably reduce penalty (iniquitous and unconscionable) Nullity of penal clause – no nullity of principal. 1207 Art. 1230 Art. 1239 No period. divisible: measurable/partial (unless stipulated otherwise). 3 person may reimburse from debtor except when paid without knowledge and consent – recover only what’s beneficial rd Payment by 3 person without knowledge/consent – no subrogation of rights rd Payment by 3 person without intent to reimbursement = donation – need consent Payment by person with no free disposal – not valid . 1210 Art. condition Each solidary creditor may do what may be useful to the others Solidary creditor can’t assign his rights with consent of others Debtor may pay any creditor. 1214 Art. nullity of principal – nullity of penal Extinguishment of obligation Payment Not deemed paid unless thing/service has been completely delivered Substantial performance in good faith – deemed as fulfilled + damages Acceptance of substantial performance without express protest – fulfilled + no damages rd rd Creditor not bound to accept payment by 3 persons. 1226 Art. 1213 Art.. 1238 Art. insolvency – shouldered by others in proportion to debt Payment made after prescription/illegal – no reimbursement Remission by creditor – debtor still responsible to co-debtors Remission of whole obligation – no reimbursement Object lost/impossible without fault of solidary debtors – extinguished. 1234 Art. 1235 Art. 1205 Art. 1216 Art.(guarantees/sureties. 1223 Art. deterioration of substitute Solidary liability – only when expressly stated. 1203 Art. creditor can’t be compelled to receive partial Right of choice – debtor. 1208 Art. 1199 Art. 1212 Art. period. 1221 Art. depend on will of debtor . compensation. 1225 Art. 1215 Art. 1220 Art. fortuitous after impossible/ delay – all responsible + action Solidary debtor – all defences from nature of obligation or personal Divisibility/indivisibility + one debtor and one creditor – chapter2 Joint divisible obligation – indemnity any time one debtor fail to comply. 1217 Art. 1201 Art. abscond) Alternative obligation – complete performance of one. creditor may choose whose offer to accept. with fault – all responsible + action against guilty debtor. confusion or remission of the debt – extinguish – liability towards others Creditor may proceed after any one/some/all of solidary debtor Payment by one debtor extinguishes obligation. 1236 Art. 1224 Art. 1231 Art. 1219 Art. pay creditor who demanded Novation. 1204 Art. 1218 Art. 1222 Art. 1206 Art. unlawful. 1197 Art. 1200 Art.court Debtor lose right to period in the following cases. not the object of obligation Choice – no effect until communicated Lose right of choice when only one is practicable Creditor’s prevents choice of debtor – debtor may rescind Indemnity for loss/impossibility through the fault of debtor – value of last thing which disappeared + other damages Creditor’s choice – ceases to be alternative upon communication to debtor Responsibilities of debtor in case of loss of objects Facultative obligation– one prestation agreed upon with substitute. damages – refuse to pay penalty or fraud Cant’s exempt from performance by paying penalty. debtor may reimburse from other debtor. 1237 Art.. 1228 Art.Art. 1277 Payment to = person in whose favour obligation was constitutes. 1248 Art. can’t be substituted by another act against will of oblige Dation in payment Indeterminate/ generic – can’t demand superior quality or accept inferior quality Extrajudicial cost – debtor. risk – damages Generic: loss/destruction – not extinguished Courts . 1270 Art. stipulation. 1267 Art. 1255 Art. 1254 Art. co debtors. impaired through fault of debtor Extraordinary inflation/deflation – value at time of constitution of obligation. 1262 Art. 1243 Art. 1263 Art. 1249 Art. 1244 Art. 1271 Art. same kind. guarantors – released Determinate lost/destroyed w/o fault of debtor. st 1 notification to persons interested in fulfilment nd Consignation – made by depositing thing due to judicial authority. flood. 1272 Art.. 1247 Art. 1276 Art. Payment in good faith to person in possession of credit – release from obligation Payment after judicial order to retain debt – invalid Debtor can’t compel creditor to receive a different object. 1265 Art. successors in interest. 2 notification Expenses of consignation – creditor Withdraw consigned object: before creditor accepted. part liquidated and part unliquidated Payment of debts in money – stipulated currency or phil. mercantile documents as payment only when encashed. judicial cost – court Creditor can’t be compel to accept partial prestation/ debtor to make partial payment. 1241 Art. 1253 Art. before delay – extinguished. 1273 Art.. benefit need not be proven in. consignation alone in cases. 1257 Art. 1251 Art.. 1252 Art.Art. 1260 Art. 1245 Art. sureties.. 1242 Art. only extent of share . 1269 Art. responsible for fortuitous – law. 1264 Art. location of thing. 1261 Art.partial loss is so important as to extinguish obligation Lost in possession of debtor – presumption of fault except in earthquake. 1259 Art. beneficial. 1258 Art. currency. accepts a receipt – can’t complain after Debt with interest – principal not paid until interest are covered Most onerous debt. 1256 Art. 1250 Art. 1240 Art. due. unless offered back and creditor refused w/o justification rd Creditor have all rights of action of debtor against 3 persons by reason of loss (insurance) Condonation/remission – requires acceptance (express/implied) Delivery of private document (credit) – remission. debtor/creditor and guarantor – not extinguished Confusion does not extinguish joint obligation. all of same nature – payment applied proportionately Cession – assign property in payment of debts. 1274 Art. unless otherwise Place of payment – stipulation. authority Payment to incapacitated person – valid – kept the thing. same creditor – declaration. 1275 Art. 1246 Art. storm (calamity) Prestation becomes legally/physically impossible w/o fault of debtor – released in whole or part Service has become so difficult as to be manifestly beyond the contemplation of the parties – same Debt of thing certain – criminal offense – loss – no exemption. defense against claim of inofficiousness – voluntary delivery by virtue of payment Private document in possession of debtor – presumption of voluntary delivery Renunciation of principal = also accessory Presumption of remittance of pledge – if found in possession of debtor/owner Confusion/merger – creditor and debtor in one and same person Merger of principal debtor and creditors – release guarantor. 1268 Art. released for net proceeds Consignation – creditor to whom tender of payment made refuses without just cause. domicile of debtor – change in domicile in bad faith or after delay – cost by debtor Various debts. 1266 Art. before judicial declaration – obligation remain Creditor authorize the debtor to withdraw – lose preference over the thing. 1286 Art. 1281 Art. or that the old and new obligations be on every point incompatible with each other Substituting a debtor without his consent. 1285 Art. or known to the debtor – when he delegated his debt rd Accessory obligation may subsist in so far as they benefit 3 persons who do not consent to novation New obligation is void. 1287 Art. but always with consent of creditor Substitution without knowledge/against the will of debtor – insolvency/non-fulfilment of new debtor – no liability on old debtor Substitution with consent – creditor can go after debtor – if insolvency was existing and of public knowledge. 1290 Art. bailee in commodatum. 1279 Art. 1298 Art. Legal not presumed Conventional subrogation – needs consent of 3d person and original parties rd Legal subrogation in cases: creditor to creditor credit buy off. substitution debtor. 1279 present – compensation by operation of law Novation: change object/principal condition. 1304 Compensation – 2 persons are creditors and debtors of each other Requisites Guarantor may set up compensation as regards what the creditor may owe the principal debtor Total or partial compensation May agree upon compensation of debts not yet due Judicial set-off (damages) Compensation before rescission/nullity of obligation rd Assignment of credit by the creditor to 3 person Compensation – by operation of law regardless of place. 1283 Art. 1299 Art. 1288 Art. unless intended otherwise Novation is void if original obligation is void. 1289 Art. 1280 Art. 1292 Art. 1297 Art. 1300 Art. except before annulment/when ratified Same suspensive/resolutory condition rd Subrogation of 3 person in the rights of creditor – legal or conventional. subrogation of creditor Expressed in unequivocal terms. 1301 Art.Art. indemnity for expenses of transpo – partial Not proper in case of debts: from depositorium. 1294 Art. 1291 Art. 1295 Art. 1278 Art. 1282 Art. 1296 Art. 1302 Art. interested person even w/o consent of debtor Subrogation transfers to the subrogated person the credit with all the rights of creditor Creditor to whom partial payment was given preferred over subrogated ( for reimbursement) – partial rd payment by 3 person w/ consent . 1293 Art. old will subsist.1303 Art. 1284 Art. disinterested 3 person w/ consent of debtor. support for gratuitous title No compensation in civil liability from penal offense Order of compensation – follow order of payment Requisites in Art. 1335 Art.. 1324 Art. 1334 Art. contracts of pure beneficence – liberality of benefactor Motives No cause – no effect. place. 1331 Art. during hypnotic spell/state of drunkenness – voidable Above incapacity is subject to modifications by law (Rules of Court) Consent through mistake. real. stipulation. 1326 Art. 1312 Art. induces another Perfection of contracts: consensual. E: by nature. insane or demented. 1320 Art. 1332 Art. 1337 Art. heirs. object. 1317 Art. 1349 Art.) – valid Object of a contract Impossible things/service – can’t be the object Object – must be determinate as to its kind Cause: onerous – prestation/promise of thing or servicel remuneratory – service/benefit remunerated. 1333 Art. intimidation. 1344 Art. 1323 Art. insanity. or fraud – voidable Mistake or error – should be substantial Burden of prf in case of mistake or fraud – person enforcing the contract (in case one of the parties is unable to read. 1350 Art. 1313 Art. option money G: Business advertisements are invitations to make an offer G: advertisements for bidders are invitations to make proposals No capacity of give consent: minors. 1319 Art. not contrary. 1318 Art. contingency Mutual error (in mistake of law) Violence and intimidation rd Violence or intimidation by a 3 person Undue influence Fraud (Causal fraud) Fraud by concealment Usual exaggerations in trade (dealer’s/trader’s talk) Expression of opinion Misrepresentation by 3rd persons Misrepresentation in good faith Causal fraud and incidental fraud Simulation of contract (absolute of relative) rd Absolutely simulated – void. 1345 Art. law). doubt. 1327 Art. and manner of acceptance Offer made through an agent – acceptance communicated to agent Offer becomes ineffective – death. solemn Perfection of real contracts – delivery (deposit. 1328 Art. 1343 Art. 1307 Art. to bind one self to perform an obligation Freedom to contract Innominate contracts – no specific name/ delagtion in law (by analogous nominate contract) Contracts bind both parties rd Determination of performance by 3 person If determination is evidently inequitable – the courts shall decide what is equitable Persons affected by a contract (G: parties.Art. 1305 Art. 1306 Art. 1348 Art. 1325 Art. 1329 Art. 1339 Art. 1341 Art. 1330 Art. 1311 Art. relatively simulated (no prejudice to 3 persons. deaf-mute and illiterate Contracts: during a lucid interval – valid. 1308 Art. option period. 1309 Art. 1336 Art. acceptance. 1346 Art. 1351 Art. 1340 Art. 1315 Art. 1342 Art. stipulation pour atrui rd 3 persons are bound by contracts creating real rights Right of creditors to impugn contracts intended to defraud them rd Liability of 3 person responsible for breach of contract. 1322 Art. unlawful cause . insolvency before acceptance Option contract. commodatum) Unauthorized contracts are unenforceable unless ratified Requisites of a contract: consent. pledge. civil interdiction. 1321 Art. 1352 Contract – meeting of the minds. cause Consent (offer. undue influence.. in language not understood by him) No mistake – knowledge of risk. assigns. counter-offer) Acceptance – express of implied Offerer may fix the time. 1338 Art. 1314 Art. 1347 Art. 1310 Art. 1316 Art. violence. legally in the possession of 3 persons in good faith No rescission in Art. 1379 Art.Art. bad faith on person drafting – reformation by either party Mortgage or pledge stated as sale – reformation No reformation: simple donation inter vivos. 1356 Art. 1399 Art. successors in interest (mutual mistake). ratification Action for annulment: 4 years Ratification (extinguishes action to annul) Ratification: express or tacit/implied Ratification by guardian of incapacitated person Conformity of guilty party to ratification is not required Ratification cleanses the contract of all its defects Party entitled to bring action to annul Duty of mutual restitution upon annulment Restitution by incapacitated person: not obliged except in so far as he has been benefited Loss of thing to be returned: fruits + value of the thing at the time of loss + interest from date of loss Extinguishment of action for annulment – if object is lost through fraud or fault of plaintiff . 1389 Art. 1374 Art. 1397 Art. E: if not possible.2) in contracts approved by courts Alienation presumed in fraud of creditors: gratuitous titles and onerous title Liability of purchaser in bad faith – return. 1357 Art. 1391 Art. 1394 Art. 1371 Art. 1390 Art. 1369 Art. 1388 Art. 1358 Art. 1392 Art. 1396 Art. 1401 False cause – void (if founded on another cause which is true and lawful) Cause – presumed to exists and lawful (unless debtor proves the contrary) Lesion or inadequacy of cause – doesn’t invalidate contract (unless F. 1362 Art. 1373 Art. 1375 Art.M. 1372 Art. 1383 Art. assigns Procedure for reformation – Rules of Court (§7. 1381 Art. 1366 Art. 1387 Art. 1384 Art. 1393 Art. 1385 Art. if in the contrary – intention of the parties Intention: contemporaneous and subsequent acts Special intent over general intent Interpretation of stipulation with several meanings – one which will render it effectual Contract should be interpreted as a whole Words with different significations – understood in that which is most in keeping with nature/object Usage and custom as aid in interpretation Interpretation of obscure words or stipulations – not to favour party who caused obscurity Rules in case doubts are impossible to settle Principles of interpretation – Rule 123 of Rules of Court Rescissible contracts: valid up to the time they are rescinded “validly agreed upon” Rescissible contracts Payments made in a state of insolvency – rescissible Action for rescission is subsidiary Rescission: only to the extent necessary to cover damages rd G: mutual restitution. 1400 Art. 1359 Art. 1368 Art. 1382 Art. UI) Form of contract (G: obligatory in any form) When the law requires for the contract to be in a document/other special form Public document Reformation of instrument Principles of the general law on reformation (note: new civil code will prevail in case of conflict) Mutual mistake as basis of reformation Mistake on one side. 1355 Art. 1376 Art. 1354 Art. 1367 Art. 1380 Art. 1364 Art. 1395 Art. 1363 Art. wills. lack of skill. 1360 Art. vitiation of consent. 1353 Art. 1378 Art. 1365 Art. fraud/inequitable conduct on the other – reformation by good faith party Concealment of mistake by the other party – reformation by good faith party Ignorance. real agreement is void No reformation: when one of the parties has brought an action to enforce the instrument Party entitled to reformation: party. 1361 Art. injured party. heirs. indemnify Action for rescission: 4 years Voidable/annullable contracts: legal incapacity to give consent. negligence. 1381 (1. 1398 Art. Rule 130) If words are clear – literal meaning. 1370 Art. 1386 Art. 1377 Art. 1403 Art.Art. 1404 Inability to restore – no obligation to restore for the other party Unenforceable contracts (ratification) . 1402 Art.