Oblicon Reviewer

(1)

CIVIL OBLIGATIONS

General

What is an obligation?...2

Sources of Obligation……….………….2

Duties of Obligor……….…..…….5

Kinds of Obligations

Pure and Conditional……….………14

Obligations with a Period………..19

Alternative………..……….24

Joint and Solidary………26

Divisible and Indivisible……….………….28

Obligations with a Penal Clause………..……….29

Extinguishment of Obligations

Payment or Performance……….……….31

Loss of the Thing Due………..34

Condonation or Remission………..35

Confusion or Merger of Rights…….…..……….37

Compensations……….………..37

Novation………..42

Prescription………47

Agreement……….53

Difficulty……….………….54

Impossibility………...………..55

Other Performance Excuses

Volenti Non Fit Injuria………55

Fortuitous Event………..….56

NATURAL OBLIGATIONS

What is a natural obligation?...58

CONTRACTS

General

What is a contract?...60

Kinds of contracts……….………..69

Stipulation Pour Autrui……….……..75

Tortious Interference………77

Essential Requisites

Consent……….………..…….………….81

Object……….………....87

Cause……….………..…88

Reformation of Instruments

Defective Contracts

Rescissible……….……….….90

Voidable……….………..96

Unenforceable………..……….101

Void………104

OBLIGATIONS AND CONTRACTS

Block B2014 Finals Reviewer

Prof. Solomon Lumba

(b)NATURAL OBLIGATION – defined in Article 1423; a special kind of obligation which cannot be enforced in court but which authorizes the retention of the voluntary payment or performance made by the debtor; based on equity and natural law. (i.e. when there is prescription of duty to pay, still, the obligor paid his dues to the obligee – the obligor cannot recover his payment even there is prescription) the sanction is the law, but only conscience had originally motivated the payment.

(c) MORAL OBLIGATION – the sanction is conscience or morality, or the law of the church.

B. From the viewpoint of subject matter - (a) REAL OBLIGATION – the obligation to give

(b) PERSONAL OBLIGATION – the obligation to do or not to do (e.g. the duty to paint a house or to refrain from committing a nuisance)

C. From the affirmativeness and negativeness of the obligation -

(a) POSITIVE OR AFFIRMATIVE OBLIGATION – the obligation to give or to do (b) NEGATIVE OBLIGATION – the obligation not to do (which naturally includes not to give)

D. From the viewpoint of persons obliged - “sanction” -

(a) UNILATERAL – where only one of the parties is bound (b) BILATERAL – where both parties are bound

- may be: (b.1) reciprocal

(b.2) non-reciprocal – where performance by one is non-dependent upon performance by the other

ELEMENTS OF AN OBLIGATION

a) ACTIVE SUBJECT – (Creditor / Obligee) the person who is demanding the performance of the obligation;

b) PASSIVE SUBJECT – (Debtor / Obligor) the one bound to perform the prestation or to fulfill the obligation or duty;

c) PRESTATION – (to give, to do, or not to do) object; subject matter of the obligation; conduct required to be observed by the debtor;

Requisites of Prestation / Object: 1) licit (if illicit, it is void)

2) possible (if impossible, it is void)

3) determinate or determinable (or else, void) 4) pecuniary value

INJURY – wrongful act or omission which causes loss or harm to another DAMAGE – result of injury (loss, hurt, harm)

d) EFFICIENT CAUSE – the JURIDICAL TIE which binds the parties to the obligation; source of the obligation.

Art. 1423. Obligations are civil or natural. Civil obligations give a right of action to compel their performance. Natural obligations, not being based on positive law but on equity and natural law, do not grant a right of action to enforce their performance, but after voluntary fulfillment by the obligor, they authorize the retention of what has been delivered or rendered by reason thereof. Some natural obligations are set forth in the following articles.

What are the sources of obligations?

Art. 1157. Obligation arises from – (1) law; (2) contracts; (3) quasi-contracts; (4) acts or omissions punished by law; (5)quasi-delicts.

(1) LAW (Obligation ex lege) – imposed by law itself; must be expressly or impliedly set forth and cannot be presumed

(3)

(2) CONTRACTS (Obligation ex contractu) – arise from stipulations of the parties: meeting of the minds / formal agreement

(3) QUASI-CONTRACTS (Obligation ex quasi-contractu) – arise from lawful, voluntary and unilateral acts and which are enforceable to the end that no one shall be unjustly enriched or benefited at the expense of another

(4) DELICTS (Obligation ex maleficio or ex delicto) – arise from civil liability which is the consequence of a criminal offense

(5) QUASI-DELICTS / TORTS (Obligation ex quasi-delicto or ex quasi-maleficio) – arise from damage caused to another through an act or omission, there being no fault or negligence, but no contractual relation exists between the parties

Art. 1158. Obligations from law are not presumed. Only those (1) expressly determined in this code or (2) in special laws are demandable, and shall be regulated by the precepts of the law which establishes them; and as to what has not been foreseen, by the provisions of this code.

-Unless such obligations are EXPRESSLY provided by law, they are not demandable and enforceable, and cannot be presumed to exist.

-The Civil Code can be applicable supplementary to obligations arising from laws other than the Civil Code itself.

-Special laws – refer to all other laws not contained in the Civil Code.

Art. 1159. Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith.

CONTRACT – meeting of minds between two persons whereby one binds himself, with respect to the other, to give, to do something or to render some service; governed primarily by the agreement of the contracting parties. VALID CONTRACT – it should not be against the law, contrary to morals, good customs, public order, and public policy. In the eyes of law, a void contract does not exist and no obligation will arise from it.

OBLIGATIONS ARISING FROM CONTRACTS – primarily governed by the stipulations, clauses, terms and conditions of their agreements.

If a contract’s prestation is unconscionable (unfair) or unreasonable, even if it does not violate morals, law, etc., it may not be enforced totally.

Interpretation of contract involves a question of law.

COMPLIANCE IN GOOD FAITH – compliance or performance in accordance with the stipulations or terms of the contract or agreement.

FALSIFICATION OF A VALID CONTRACT – only the unauthorized insertions will be disregarded; the original terms and stipulations should be considered valid and subsisting for the parties to fulfill.

Art. 1160. Obligations derived from quasi-contracts shall be subject to the provisions of chapter 1, title 17 of this book.

QUASI-CONTRACT – juridical relation resulting from lawful, voluntary and unilateral acts by virtue of which, both parties become

bound to each other, to the end that no one will be unjustly enriched or benefited at the expense of the other. (See Article 2142)

(1) NEGOTIORUM GESTIO – juridical relation which takes place when somebody voluntarily manages the property affairs of another without the knowledge or consent of the latter; owner shall reimburse the gestor for necessary and useful expenses incurred by the latter for the performance of his function as gestor. (2) SOLUTIO INDEBITI – something is received when there is no right to demand it and it was unduly delivered through mistake; obligation to return the thing arises on the part of the recipient. (ex. storekeeper gives excess change, you have the obligation to return the excess)

Art. 1161. Civil obligations arising from criminal offenses shall be governed by the penal laws, subject to the provisions of Article 2177, and of the pertinent provisions of Chapter 2, Preliminary in Human Relations, and of Title 18 of this book, regulating damages.

Governing rules:

1. Pertinent provisions of the RPC and other penal laws subject to Art 2177 Civil Code [Art 100, RPC – Every person criminally liable for a felony is also civilly liable]

2. Chapter 2, Preliminary title, on Human Relations ( Civil Code ) 3. Title 18 of Book IV of the Civil Code – on damages

- Every person criminally liable for a felony is also criminally liable (art. 100, RPC)

CRIMINAL LIABILITY INCLUDES:

(a) RESTITUTION – restoration of property previously taken away; the thing itself shall be restored, even though it be found in the possession of a third person who has acquired it by lawful means, saving to the latter his action against the proper person who may be liable to him.

(b) REPARATION OF THE DAMAGE CAUSED – court determines the amount of damage: price of a thing, sentimental value, etc.

(c) INDEMNIFICATION FOR CONSEQUENTIAL DAMAGES – includes damages suffered by the family of the injured

(4)

party or by a third person by reason of the crime.

Effect of acquittal in criminal case:

a. when acquittal is due to reasonable doubt – no civil liability

b. when acquittal is due to exempting circumstances – there is civil liability c. when there is preponderance of evidence – there is civil liability

Art. 1162. Obligations derived from quasi-delicts shall be governed by the provisions of chapter 2, title 17 of this book, and by special laws.

Art. 2176. Whoever by act or omission causes damage to another, there being fault or negligence, is obliged to pay for the damage done. Such fault or negligence, if there is no pre-existing contractual relation between the parties, is called a quasi-delict and is governed by the provisions of this Chapter.

Art. 2180. The obligation imposed by Article 2176 is demandable not only for one's own acts or omissions, but also for those of persons for whom one is responsible.

QUASI-DELICT (culpa aquiliana) – an act or omission by a person which causes damage to another giving rise to an obligation to pay for the damage done, there being fault or negligence but there is no pre-existing contractual relation between parties.

- Requisites: a. omission b. negligence

c. damage caused to the plaintiff

d. direct relation of omission, being the cause, and the damage, being the effect

e. no pre-existing contractual relations between parties

Fault or Negligence – consists in the omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the person, time, and of the place.

Obligations derived from quasi delicts are also applicable for persons for whom one is responsible such as:

- father / in case unavailable, mother for their minor children - guardians

- employers for their employees

- owners / managers of establishments for their employees - the state through its special agent

- teachers / heads of establishments of arts and trades for students in their custody

Requisites of liability

- there exists a wrongful act or omission imputable to the defendant by reason of his fault or negligence

- there exists a damage or injury which must be proved by the person claiming recovery

- there must be a direct causal connection or a relation of cause and effect between the fault or negligence and the damage or injury, or that the fault or negligence be the cause of the damage or injury.

RULE 111 - Prosecution of Civil Action

Section 1. Institution of criminal and civil actions. —

(a) When a criminal action is instituted, the civil action for the recovery of civil liability arising from the offense charged shall be deemed

instituted with the criminal action unless

 offended party waives the civil action

 reserves the right to institute it separately

 institutes the civil action prior to the criminal action. SAGRADA ORDEN v NACOCO

J. Labrador

-FACTS: Alien Property Administration had the control and administration of the property by express provision of the law. There’s no agreement b/w the APA and NACOCO to pay rentals on the property. Previous occupant also did not pay rentals.

- HELD: No crime since NACOCO entered the premises since it occupied the property with the permission of the APA. Also, no contract or obligation between APA and Taiwan Tekkosho. Therefore, APA occupied the property IN GOOD FAITH.

FGU INSURANCE v SARMIENTO J. Vitug

- FACTS: Insured company got into an accident. FGU Insurance had to pay for the damages as a result of the accident. They now seek to recover from the trucking company, the other party in the accident.

(5)

- HELD: A private hauler is not a common carrier and it was not proven that the driver was negligent.

- FGU is the subrogee of the rights and interests of Concepcion industries so it had a right to seek reimbursement for the amount it had paid to the latter from the trucking corporation. However, the liability arose from a contract. A breach upon the contract confers upon the injured party a valid cause for recovering that which had been lost or suffered.

- Failure in the compliance of an obligation, in this case the delivery of goods, gives rise to a presumption of lack of care and corresponding liability on the part of the contractual obligor.

- Driver may not be held liable since he was not a party to the contract of carriage between petitioner’s principal and defendant. But, civil action may be filed against him based on culpa aquiliana. Negligence must be proved first.

-Kinds of Interest:

1) Expectation interest - the interest of a party to a breached contract in receiving the benefit of the bargain by being put in a position as good as that which would have resulted had the contract been performed. It is based on the actual value the contract would have had to the injured party if the contract had been performed.

- you pay 1 peso for a car that that should have been delivered. Person did not deliver car. He owes you 1 peso for the car not delivered.

2) Reliance interest - the interest of a party to a breached contract in being compensated for detriments suffered (as expenses incurred) in reliance on the agreement

Reliance damages protect a party's reliance interest. Neal spent $100 in reliance on the contract, which constituted Neal's reliance interest.

Since reliance damages equal to the value of the reliance interest of the injured party, Matt owes Neal $100. This puts Neal in the same economic position as if the contract never happened.

- another example would also be buying mags for a car which was not delivered 3) Restitution interest - interest in having restored to him any benefit that he has conferred on the other party....

Example: A, a social worker, promises B to render personal services to C in return for B's promise to educate A's children. B repudiates the contract after A has rendered part of the services. A can get restitution from B for the services, even though they were not rendered to B, because they conferred a benefit on B.

COCA COLA v. CA J. Davide Jr.

- FACTS: Proprietress of a school canteen found foreign substances in the softdrinks she sells at her canteen.

- HELD: Liability for quasi delicts may exist even with a contract if the nature that breaks the contract may also be a tort. Existence of a contract does not preclude the action for quasi delicts

LRTA v NAVIDAD J. Vitug

- FACTS: Man and guard had an altercation. Man fell on the railway tracks of LRT just as the train was approaching. He died.

- HELD: Agency can never be liable if guard is not liable. Agency may be liable if guard is liable except if it establishes that it exercised extraordinary diligence in choosing employees. Obligation is based on quasi delict.

- LRTA is a common carrier so carrier is presumed to be at fault upon proof of the injury. Burden shifts on the carrier to prove that the injury is due to an unforeseen event or force majeure.

- LRTA’s liability is the contract of carriage and its obligation to indemnify the victim arises from the breach of that contract by reason of its failure to exercise the high diligence required of the common carrier.

LG FOODS v AGRAVIADOR J. Garcia

- FACTS: Boy died after being hit by the van of the petitioners. The driver who was driving the van and an employee of the petitioners killed himself.

- HELD: Civil liability arising from the criminal act. Judgement is required. Since driver killed himself, Art 2180 was used (for persons for whom one was responsible). LG foods is principally liable. It was sufficiently alleged that the death of the son was caused by the driver’s negligence. LG foods impliedly admitted the action for quasi delicts by using the defense that they exercised extraordinary diligence to choose its employees.

What are the duties of the obligor in obligations to give?

To take care of the thing with the diligence of a good father of a family

Art. 1163. Every person obliged to give something is also obliged to take care of it with the proper diligence of a good father of a family, unless the law or the stipulation of the parties requires another standard of care.

(6)

- Speaks of an obligation to care of a DETERMINATE thing (that is one which is specific; a thing identified by its individuality) which an obligor is supposed to deliver to another.

Reason: the obligor cannot take care of the whole class/genus DUTIES OF DEBTOR:

Preserve or take care of the things due.

DILIGENCE OF A GOOD FATHER – a good father does not abandon his family, he is always ready to provide and protect his family; ordinary care which an average and reasonably prudent man would do.

- Defined in the negative in Article 1173

ANOTHER STANDARD OF CARE – extraordinary diligence provided in the stipulation of parties.

FACTORS TO BE CONSIDERED – diligence depends on the nature of obligation and corresponds with the circumstances of the person, time, and place.

Art. 1173. The fault or negligence of the obligor consists in the omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the persons, of the time and of the place. When negligence shows bad faith, the provisions of Articles 1171 and 2201, paragraph 2, shall apply.

If the law or contract does not state the diligence which is to be observed in the performance, that which is expected of a good father of a family shall be required. (1104a)

FRAUD Negligence

There is deliberate intention to cause damage.

Liability cannot be mitigated. Waiver for future fraud is void.

There is no deliberate intention to cause damage.

Liability may be mitigated.

Waiver for future negligence may be allowed in certain cases:

- This provision provides for a negative definition of “proper diligence of a good father of a family”

DILIGENCE – the attention and care required of a person in a given situation and is opposite of negligence.

NEGLIGENCE – consists in the omission of that diligence which is required by the nature of the particular obligation and corresponds with the circumstances of the persons, of the time, and of the place.

KINDS of DILIGENCE:

1. DILIGENCE OF A GOOD FATHER – a good father does not abandon his family, he is always ready to provide and protect his family; ordinary care which an average and reasonably prudent man would do.

2. Diligence required by the law governing the particular obligation 3. Diligence stipulated by the parties

To deliver the thing

Art. 1169. Those obliged to deliver or to do something incur in delay from the time the obligee judicially or extrajudicially demands from them the

fulfillment of their obligation.

However, the demand by the creditor shall not be necessary in order that delay may exists:

-When the law or obligation so expressly declares;

-When from the nature of the contract, time us the essence and motivating factor for its establishment;

-When demand would be useless (prestation is impossible);

-In reciprocal obligations, from the moment one of the parties fulfills his obligation;

-When the debtor admits he is in default

ORDINARY DELAY – mere failure to perform an obligation at the appointed time.

LEGAL DELAY (DEFAULT) – tantamount to non-fulfillment of the obligation and arises after an extrajudicial or judicial demand was made upon the debtor.

KINDS OF DEFAULT :

a) MORA SOLVENDI – delay on the part of the debtor to fulfill his obligation; REQUISITES:

1. failure of the obligor to perform obligation on the DATE agreed upon; 2. demand (judicial/extrajudicial) by the creditor;

3. failure to comply with such demand EFFECTS:

1) debtor – liable for damages and interests

2) debtor – liable for the loss of a thing due to a fortuitous event KINDS:

1) mora solvendi ex re – default in real obligations (to give)

(7)

b) MORA ACCIPIENDI – delay on the part of the creditor to accept the performance of the obligation;

Effects:

1. creditor – liable for damages

2. creditor – bears the risk of loss of the thing

3. debtor – not liable for interest from the time of creditor’s delay 4. debtor – release himself from the obligation

c) COMPENSATIO MORAE – delay of the obligors in reciprocal obligation. Effect: the default of one compensates the default of the other; their respective liabilities shall be offset equitable. Default / Delay in negative obligation is not possible. (In negative obligation, only fulfillment and violation are possible)

Art. 712. Ownership is acquired by occupation and by intellectual creation. Ownership and other real rights over property are acquired and transmitted by law, by donation, by estate and intestate succession, and in consequence of certain contracts, by tradition.

They may also be acquired by means of prescription.

Art. 1164. The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises. However, he

shall acquire no real right over it until the same has been delivered to him. REAL RIGHT (jus in re) – right pertaining to person over a specific thing, without a passive subject individually determined against whom such right may be personally enforced.

- a right enforceable against the whole world

PERSONAL RIGHT (jus ad rem) – a right pertaining to a person to demand from another, as a definite passive subject, the fulfillment of a prestation to give, to do or not to do.

- a right enforceable only against a definite person or group of persons. - Before the delivery, the creditor, in obligations to give, has merely a personal right against the debtor – a right to ask for

delivery of the thing and the fruits thereof.

- Once the thing and the fruits are delivered, then he acquires a real right over them.

- Ownership is transferred by delivery which could be either actual or

constructive. (Art. 1477)

- The remedy of the buyer when there is no delivery despite demand is to file a complaint for “SPECIFIC PERFORMANCE AND DELIVERY” because he is not yet the owner of the property before the delivery.

ACTUAL DELIVERY – actual delivery of a thing from the hand of the grantor to the hand of the grantee (personally), or manifested by certain possessory acts executed by the grantee with the consent of the grantor (realty).

FRUITS:

1. NATURAL – spontaneous products of the soil, the young and other products of animals;

2. INDUSTRIAL – produced by lands of any cultivation or labor; 3. CIVIL – those derived by virtue of juridical relation.

Art. 725. Donation is an act of liberality whereby a person disposes gratuitously of a thing or right in favor of another, who accepts it.

Art. 1165. When what is to be delivered is a determinate thing, the creditor … may compel the debtor to make delivery.

If the thing is indeterminate or generic, he may ask that the obligation be complied with at the expense of the debtor. If the obligor delays or has promised to deliver the same thing to two or more persons who do not have the same interest, he shall be responsible for any fortuitous event until he has effected the delivery.

*This provision applies to an obligation to give. DETERMINATE THING

- something which is susceptible of particular designation or specification; - obligation is extinguished if the thing is lost due to fortuitous events. - Article 1460: a thing is determinate when it is particularly designated and physically segregated from all others of the

same class.

INDETERMINATE THING

- something that has reference only to a class or genus;

- obligation to deliver is not so extinguished by fortuitous events. REMEDIES FOR FAILURE OF DELIVERY (determinate thing)

1. Complaint for specific performance – an action to compel the fulfillment of the obligation.

2. Complaint for rescission of the obligation – action to rescind

3. Complaint for damages – action to claim for compensation of damages suffered

(8)

- As a general rule, “no person shall be responsible for those events which could not be foreseen, or which, though foreseen, are inevitable, except: 1. in cases expressly specified by the law

2. when it is stipulated by the parties

3. when the nature of the obligation requires assumption of risk

- An indeterminate thing cannot be object of destruction by a fortuitous event because genus never perishes.

Art. 1477. The ownership of the thing sold shall be transferred to the vendee upon the actual or constructive delivery thereof. (n)

To deliver the fruits of the thing

Art. 1164. The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises. However, he shall acquire no real right over it until the same has been delivered to him.

Art. 441. To the owner belongs: (1) The natural fruits;

(2) The industrial fruits; (3) The civil fruits. (354)

Art. 442. Natural fruits are the spontaneous products of the soil, and the young and other products of animals.

Industrial fruits are those produced by lands of any kind through cultivation or labor.

Civil fruits are the rents of buildings, the price of leases of lands and other property and the amount of perpetual or life annuities or other similar income. (355a)

Art. 443. He who receives the fruits has the obligation to pay the expenses made by a third person in their production, gathering, and preservation. (356) Art. 444. Only such as are manifest or born are considered as natural or industrial fruits.

To deliver the accessions and accessories of the thing

Art. 1166. The obligation to give a determinate thing includes that of delivering all its accessions and accessories, even though they may not have been mentioned.

ACCESSIONS – fruits of the thing or additions to or improvements upon the principal

-those which are naturally or artificially attached to the thing ACCESSORIES – things included with the principal for the latter’s embellishment, better use, or completion

When does right to fruits arise? – from the time the obligation to deliver arises

-Conditional – from the moment the condition happens - With a term/period – upon the expiration of the term/period - Simple – from the perfection of the contract

Art. 445. Whatever is built, planted or sown on the land of another and the improvements or repairs made thereon, belong to the owner of the land, subject to the provisions of the following articles.

Art. 447. The owner of the land who makes thereon, personally or through another, plantings, constructions or works with the materials of another, shall pay their value; and, if he acted in bad faith, he shall also be obliged to the reparation of damages. The owner of the materials shall have the right to remove them only in case he can do so without injury to the work

constructed, or without the plantings, constructions or works being destroyed. However, if the landowner acted in bad faith, the owner of the materials may remove them in any event, with a right to be indemnified for damages.

Art. 459. Whenever the current of a river, creek or torrent segregates from an estate on its bank a known portion of land and transfers it to another estate, the owner of the land to which the segregated portion belonged retains the ownership of it, provided that he removes the same within two years.

To pay for damages in case of fraud, negligence, delay or contravention of tenor

However, the demand by the creditor shall not be necessary in order that delay may exist:

(1) When the obligation or the law expressly so declare; or

(2) When from the nature and the circumstances of the obligation it appears that the designation of the time when the thing is to be delivered or

(9)

the service is to be rendered was a controlling motive for the establishment of the contract; or

(3) When demand would be useless, as when the obligor has rendered it beyond his power to perform.

In reciprocal obligations, neither party incurs in delay if the other does not comply or is not ready to comply in a proper manner with what is incumbent upon him. From the moment one of the parties fulfills his obligation, delay by the other begins. (1100a)

Art. 1170. Those who in the performance of their obligations are guilty of fraud, negligence, or delay, and those who in any manner contravene the tenor thereof, are liable for damages. (1101)

FRAUD (dolo) – deliberate intentional evasion of the faithful fulfillment of an obligation;

NEGLIGENCE (culpa or fault) – voluntary act or omission of diligence, there being no malice, which prevents the normal fulfillment

of an obligation;

DELAY (mora) – default or tardiness in the performance of an obligation after it has been due and demandable;

CONTRAVENTION OF TERMS OF OBLIGATION (violation)– violation of terms and conditions stipulated in the obligation; this must

not be due to a fortuitous event.

Art. 1171. Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for future fraud is void. (1102a)

INCIDENTAL FRAUD (applicable provisions are Arts. 1170 & 1344) – committed in the performance of an obligation already

existing because of a contract; incidental fraud obliges the person employing it to pay damages.

CAUSAL FRAUD – (Art. 1338) employed in the execution of contract in order to secure consent; remedy is annulment because of

vitiation of consent.

Art. 1172. Responsibility arising from negligence in the performance of every kind of obligation is also demandable, but such liability may be regulated by the courts, according to the circumstances. (1103)

Court’s discretion because:

(a) negligence depends upon the circumstances of a case – good or bad faith of the obligor may be considered as well as the conduct or misconduct of the obligee;

(b) it is not as serious as fraud.

Negligence – lack of foresight or knowledge Imprudence – lack of skill or precaution

TEST OF NEGLIGENCE

Did the defendant, in doing the alleged negligent act, use the reasonable care and caution which an ordinary prudent man would

have used in the same situation?

Two Types of Negligence:

Basis Culpa Aquiliana (Quasi

Delict)

Culpa Contractual (Breach of Contract)

Definition Negligence between

parties not so related by pre-existing contract

Negligence in the performance of contractual obligation Nature of Negligence Direct, substantive and

independent

Incidental to the performance of the obligation

Good Father of the family defense

Complete and proper defense (parents, guardians, employers)

Not complete and proper defense in the selection of employees Presumption of

negligence

No presumption – injured party must prove negligence of the defendant

There is presumption of negligence by the fact that the contract was breached. Must show that they are not negligent and breach was caused by fortuitous events.

(10)

Ex, Bus with passengers bumps a car. A was a passenger of the bus. B was the driver of the car. There is culpa contractual with regards to A and the bus driver and culpa aquiliana with regards to the car driver and bus driver.

Question: Does the employer still have to prove extraordinary diligence in choosing his employees in an action for culpa aquiliana if it was proven that the driver was not negligent? NO!

Art. 2199. Except as provided by law or by stipulation, one is entitled to an adequate compensation only for such pecuniary loss suffered by him as he has duly proved. Such compensation is referred to as actual or compensatory damages.

Art. 2200. Indemnification for damages shall comprehend not only the value of the loss suffered, but also that of the profits which the obligee failed to obtain. (1106)

Art. 2201. In contracts and quasi-contracts, the damages for which the obligor who acted in good faith is liable shall be those that are the natural and probable consequences of the breach of the obligation, and which the parties have foreseen or could have reasonably foreseen at the time the obligation was constituted.

In case of fraud, bad faith, malice or wanton attitude, the obligor shall be responsible for all damages which may be reasonably attributed to the non-performance of the obligation. (1107a)

Art. 2202. In crimes and quasi-delicts, the defendant shall be liable for all damages which are the natural and probable consequences of the act or omission complained of. It is not necessary that such damages have been foreseen or could have reasonably been foreseen by the defendant. Art. 2216. No proof of pecuniary loss is necessary in order that moral, nominal, temperate, liquidated or exemplary damages, may be adjudicated. The assessment of such damages, except liquidated ones, is left to the discretion of the court, according to the circumstances of each case.

Art. 2217. Moral damages include physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded feelings, moral shock, social humiliation, and similar injury. Though incapable of pecuniary

computation, moral damages may be recovered if they are the proximate result of the defendant's wrongful act for omission.

Art. 2221. Nominal damages are adjudicated in order that a right of the plaintiff, which has been violated or invaded by the defendant, may be vindicated or recognized, and not for the purpose of indemnifying the plaintiff for any loss suffered by him.

Art. 2224. Temperate or moderate damages, which are more than nominal but less than compensatory damages, may be recovered when the court finds that some pecuniary loss has been suffered but its amount can not, from the nature of the case, be provided with certainty.

Art. 2226. Liquidated damages are those agreed upon by the parties to a contract, to be paid in case of breach thereof.

Art. 2229. Exemplary or corrective damages are imposed, by way of example or correction for the public good, in addition to the moral, temperate, liquidated or compensatory damages.

Kinds of Damages – MENTAL

MORAL - Moral damages include physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded feelings, moral shock, social humiliation, and similar injury. Though incapable of pecuniary computation, moral damages may be recovered if they are the proximate result of the defendant's wrongful act for omission. Includes sentimental value of property EXEMPLARY - Exemplary or corrective damages are imposed, by way of example or correction for the public good, in addition to the moral, temperate, liquidated or compensatory damages.

NOMINAL - Nominal damages are adjudicated in order that a right of the plaintiff, which has been violated or invaded by the defendant, may be vindicated or recognized, and not for the purpose of indemnifying the plaintiff for any loss suffered by him.

TEMPERATE - Temperate or moderate damages, which are more than nominal but less than compensatory damages, may be recovered when the court finds that some pecuniary loss has been suffered but its amount can not, from the nature of the case, be provided with certainty.

ACTUAL / Compensatory - adequate compensation only for such pecuniary loss suffered by him as he has duly proved

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LIQUIDATED - Liquidated damages are those agreed upon by the parties to a contract, to be paid in case of breach thereof.

ARRIETA v. NATIONAL RICE J. Regala

- Source of obligation: contract

- failure of the opening of the letter of credit was the cause for the breach of contract

- … it is clear that what singularly delayed the opening of the stipulated letter of credit and which, in turn, caused the cancellation of the allocation in Burma, was the inability of the appellant corporation to meet the condition

importation by the Bank for granting the same.

- liability and culpability arises from the willful and deliberate assumption of contractual obligations even as it was well aware of its financial incapacity to undertake the prestation

- NARIC knew the bank requirements for opening a letter of credit and that it could not meet its requirement. Despite that, it still continued with the bidding. Hence , it must be similarly held to have bound itself to answer for all and every consequences that would result from the representation. aptly observed by the trial court.

- “Those who in the performance of their obligation are guilty of fraud, negligence, or delay, and those who in any manner contravene the tenor thereof, are liable in damages.”

- The NARIC would also have this Court hold that the subsequent offer to substitute Thailand rice for the originally contracted Burmese rice amounted to a waiver by the appellee of whatever rights she might have derived from the breach of the contract. We disagree. Waivers are not presumed, but must be clearly and convincingly shown, either by express stipulation or acts admitting no other reasonable explanation.

- damages were based on estimates , cost studies, and evidence. Award should be in Philippine peso. Exchange rate is to be when the obligation was incurred.

CATHAY PACIFIC v VAZQUEZ J. Davide

- Source of obligation: contract of carriage

- breach of contract of carriage -> upgrading the seats from business class to first class is a breach of contract

- breach of contract - failure without legal reason to comply with the terms of a contract.”*5+ It is also defined as the “*f+ailure, without legal excuse, to perform any promise which forms the whole or part of the contract

- By insisting on the upgrade, Cathay breached its contract of carriage with the Vazquezes even when the Vasquez’s waived their privilege in not taking the upgraded seats

- the upgrading of the seats were not in bad faith. Bad faith is defined as “… a dishonest purpose or some moral obliquity and conscious doing of a wrong, a breach of a known duty through some motive or interest or ill will that partakes of the nature of fraud”

- there was no bad faith since the Vasquez spouses were not induced by deceit in upgrading their seats and it was not for a devious or evil purpose.

- overbooking the business class section was not in bad faith since it is in accordance with law (Section 3 of the Economic Regulation No. 7 of the Civil Aeronautics Board)

- there are no moral damages since it requires the following:

(1) there must be an injury clearly sustained by the claimant, whether physical, mental or psychological; (2) there must be a culpable act or omission factually established; (3) the wrongful act or omission of the defendant is the proximate cause of the injury sustained by the claimant; and (4) the award for damages is predicated on any of the cases stated in Article 2219 of the Civil Code.

- Moral damages predicated upon a breach of contract of carriage may only be recoverable in instances where the carrier is guilty of fraud or bad faith or where the mishap resulted in the death of a passenger.[ Where in breaching the contract of carriage the airline is not shown to have acted fraudulently or in bad faith, liability for damages is limited to the natural and probable

consequences of the breach of the obligation which the parties had foreseen or could have reasonably foreseen. In such a case the liability does not include moral and exemplary damages. Nominal damages is applicable since it deals with the right of the spouses.

PLEASANTVILLE v CA J. Panganiban

Source of obligation: contract

- there was good faith in Kee building the properties in the disputed lot. - Good faith consists in the belief of the builder that the land he is building on is his and his ignorance of any defect or flaw in his title. And as good faith is presumed, petitioner has the burden of proving bad faith on the part of Kee. At the time he built improvements on Lot 8, Kee believed that said lot was what he bought from petitioner. He was not aware that the lot delivered to him was not Lot 8. Thus, Kee’s good faith. Petitioner failed to prove otherwise.

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- provision on contract of sale regarding erosion is not applicable to the negligence of the seller’s agent.

- waiver to contract away rights to recover damages from negligence is contrary to public policy and is not allowed.

- principal is responsible for the acts of the agent, done within the scope of his authority, and should bear the damage caused to third persons. cause of the issue was the agent’s negligence.

- Holding of the CA would unjustly enrich KEE:

“a. If Eldred Jardinico decides to appropriate the improvements and, thereafter, remove these structures, the third-party defendants shall answer for all demolition expenses and the value of the improvements thus destroyed or rendered useless;

“b. If Jardinico prefers that Kee buy the land, the third-party defendants shall answer for the amount representing the value of Lot 9 that Kee should pay to Jardinico.”

Kee and Jardincio has already amicably settled through their deed of sale their rights and obligations with regards to Lot 9.

What are the duties of the obligor in obligations to do? To do it

To shoulder the cost if someone else does it To undo what has been poorly done

Art. 1167. If a person obliged to do something fails to do it, the same shall be executed at his cost.

This same rule shall be observed if he does it in contravention of the tenor of the obligation. Furthermore, it may be decreed that what has been poorly done be undone. (1098)

(2) When from the nature and the circumstances of the obligation it appears that the designation of the time when the thing is to be delivered or the service is to be rendered was a controlling motive for the establishment of the contract; or

(See annotations above)

What are the duties of the obligor in obligations not to do? Not to do what should not be done

To shoulder the cost to undo what should not have been done

Art. 1168. When the obligation consists in not doing, and the obligor does what has been forbidden him, it shall also be undone at his expense. (1099a)

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* This provision applies to an obligation to do. THREE SITUATIONS:

a) Debtor’s failure to perform an obligation

creditor may do the obligation, or by another, at the expense of the debtor;- recover damages

b) Performance was contrary to the terms agreed upon - order of the court to undo the same at the expense of the debtor

c) Performance in a poor manner - order of the court to undo the same at the expense of the debtor

To pay damages

Art. 2201. In contracts and quasi-contracts, the damages for which the obligor who acted in good faith is liable shall be those that are the natural and probable consequences of the breach of the obligation, and which the parties have foreseen or could have reasonably foreseen at the time the obligation was constituted.

In case of fraud, bad faith, malice or wanton attitude, the obligor shall be responsible for all damages which may be reasonably attributed to the non-performance of the obligation. (1107a)

Art. 2202. In crimes and quasi-delicts, the defendant shall be liable for all damages which are the natural and probable consequences of the act or omission complained of. It is not necessary that such damages have been foreseen or could have reasonably been foreseen by the defendant.

(2) When from the nature and the circumstances of the obligation it appears that the designation of the time when the thing is to be delivered or the service is to be rendered was a controlling motive for the establishment of the contract; or

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II. Kinds of Obligations

A. Pure and Conditional Obligations

What is a pure obligation?

Art. 1179. Every obligation whose performance does not depend upon a future or uncertain event, or upon a past event unknown to the parties, is demandable at once.

Every obligation which contains a resolutory condition shall also be demandable, without prejudice to the effects of

the happening of the event.

What is a conditional obligation?

Art. 1181. In conditional obligations, the acquisition of rights, as well as the extinguishment or loss of those already acquired, shall depend upon the happening of the event which constitutes the condition.

PURE OBLIGATION – an obligation which does not contain any condition or term upon which the fulfillment is made to depend;

immediately demandable by the creditors and the debtor cannot be excused from not complying with his prestation.

CONDITIONAL OBLIGATION – an obligation which depends upon a future or uncertain event, or upon a past event unknown to the contracting parties. – an obligation subject to a condition.

- an event which is not uncertain but must necessarily happen cannot be a condition; the obligation will be considered as one with a term

- past event cannot be called a condition but rather, a basis of the contract. Even when unknown to the parties, a past event is not a condition.

- it is not the fact stated which serves as a condition but the proof of such fact; the contract or obligation arises, not when the vent happened or the fact came into existence , which would be in the past, but when the proof of such fact or event is presented, which would be the future.

Resolutory Condition – the happening of such extinguishes rights already existing; obligation is treated as if it never came into existence

- cannot be enforced against a 3rd party as it is a personal right which he can enforce only against his creditor who has become a debtor obliged to make restitution

- in case of loss of a thing, deteriorations or improvements, the party who has to make the restitution being considered the debtor

- mutual restitution happens not just for the object and the price but also for the fruits and the interests

Suspensive Condition – happening of such gives rise to an obligation

What is a resolutory condition?

Art. 1179. Every obligation whose performance does not depend upon a future or uncertain event, or upon a past event unknown to the parties, is demandable at once.

Every obligation which contains a resolutory condition shall also be demandable, without prejudice to the effects of

the happening of the event.

Art. 1190. When the conditions have for their purpose the extinguishment of an obligation to give, the parties, upon the fulfillment of said conditions, shall return to each other what they have received.

In case of the loss, deterioration or improvement of the thing, the provisions which, with respect to the debtor, are

laid down in the preceding article shall be applied to the party who is bound to return.

As for the obligations to do and not to do, the provisions of the second paragraph of Article 1187 shall be observed

as regards the effect of the extinguishment of the obligation. -Refers to the fulfillment of a resolutory condition.

-When the resolutory condition happened, the obligation is considered as if it did not exist.

-The parties are bound to return or restore whatever they have received from each other – “reciprocal restitution”

-Donation by reason of marriage – if the marriage does not happen, such donation should be returned to the donor.

-Loss, deterioration and improvement – governed by 1189.

-In obligations to do and not to do, the courts shall determine, in each case, the retroactive effect of the condition that has been complied with.

What is a potestative condition?

Art. 1182. When the fulfillment of the condition depends upon the sole will of the debtor, the conditional obligation shall be void. If it depends upon chance or upon the will of a third person, the obligation shall take effect in

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Art. 1308. The contract must bind both contracting parties; its validity or compliance cannot be left to the will of one of them. (1256a)

Art. 1309. The determination of the performance may be left to a third person, whose decision shall not be binding until it has been made known to both contracting parties. (n)

Art. 1310. The determination shall not be obligatory if it is evidently

inequitable. In such case, the courts shall decide what is equitable under the circumstances. (n)

Potestative condition – one which depends upon the will of one of the contracting parties

Casual condition – depends exclusively upon chance or other factors and not upon the will of the contracting parties

Mixed condition – one which depends upon the will of one of the contracting parties and other circumstances, including the will of a third person

Kinds of Potestative Condition

1.) Simple – presupposes not only a manifestation of will but also the realization of an external act (if you sell your house)

- does not prevent the formation of a valid obligation

- it is subject in part to contingencies over which debtor has no control 2.) Purely Potestative – depends solely and exlusively upon the will ( if I like it or if I deem it proper)

- destroys the efficacy of the legal tie;

- it is only when the potestative condition depends exclusively upon the will of the debtor that the conditional obligation is void. It is valid if it depends partly on the will of the debtor and the 3rd person,

- dependence on the debtor – illusory obligations – obligation is void but is applicable only when the condition is suspensive and cannot apply to resolutory conditions

- potestative and resolutory = may be valid - mixed conditions = valid

- if dependent on a 3rd person who cannot be compelled to carry it out, and it is found by the court that the obligor has done all in his power to comply with the obligation, the other party may be ordered to comply with his part of the contract

NAGA TELEPHONE v CA J. Nocon

Source of obligation: contract

- cause of action – one sided contract, petitioner’s use of the telephone posts caused damage

- cause of action – no payment for usage of telephone posts despite demands or private respondent

- cause of action – poor service which caused damages Respondents answered:

- not sufficient COA , barred by prescription, estoppel, their usage could not have caused the deterioration

- petitioners refused to comply with private respondent’s demands , it was probably because what is due to them from private respondent is more than its claim against them.

- telephone service had been categorized by the National Telecommunication Corporation (NTC) as "very high" and of "superior quality.

Issue of the applicability of Art 1267 of the NCC - … we agree with respondent court that the allegations in private respondent's complaint and the evidence it has presented sufficiently made out a cause of action under Article 1267. We, therefore, release the parties from their correlative obligations under the contract. However, our disposition of the present controversy does not end here. We have to take into account the possible consequences of merely releasing the parties therefrom: petitioners will remove the telephone wires/cables in the posts of private respondent, resulting in disruption of their service to the public; while private respondent, in consonance with the contract will return all the telephone units to petitioners, causing prejudice to its business. We shall not allow such eventuality. Rather, we require, as ordered by the trial court: 1) petitioners to pay private respondent for the use of its posts in Naga City and in the towns of Milaor, Canaman, Magarao and Pili, Camarines Sur and in other places where petitioners use private respondent's posts, the sum of ten (P10.00) pesos per post, per month, beginning January, 1989; and 2) private respondent to pay petitioner the monthly dues of all its telephones at the same rate being paid by the public beginning January, 1989. The peculiar circumstances of the present case, as distinguished further from the Occeña case, necessitates exercise of our equity jurisdiction.

Issue of prescription - Article 1144 of the New Civil Code provides, inter alia, that an action upon a written contract must be brought within ten (10) years from the time the right of action accrues. Clearly, the ten (10) year period is to

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be reckoned from the time the right of action accrues which is not necessarily the date of execution of the contract. This was when contract was studied since it was disadvantageous (1982) , 10 years have not yet elapsed.

Issue of Potestation - petitioners allege that there is nothing purely potestative about the prestations of either party because petitioner's permission for free use of telephones is not made to depend purely on their will, neither is private respondent's permission for free use of its posts dependent purely on its will.

Petitioners' allegations must be upheld in this regard. A potestative condition is a condition, the fulfillment of which depends upon the sole will of the debtor, in which case, the conditional obligation is void. 19 Based on this definition, respondent court's finding that the provision in the contract, to wit:

(a) That the term or period of this contract shall be as long as the party of the first part (petitioner) has need for the electric light posts of the party of the second part (private respondent) . . ..

is a potestative condition, is correct. However, it must have overlooked the other conditions in the same provision, to wit:

. . . it being understood that this contract shall terminate when for any reason whatsoever, the party of the second part (private respondent) is forced to stop, abandoned (sic) its operation as a public service and it becomes necessary to remove the electric light post (sic);

which are casual conditions since they depend on chance, hazard, or the will of a third person. In sum, the contract is subject to mixed conditions, that is, they depend partly on the will of the debtor and partly on chance, hazard or the will of a third person, which do not invalidate the aforementioned provision.

POLOTAN v CA J. Romero

Soutce of obligation – contract

PAYMENT OF CHARGES — . . . The Cardholder agrees to pay interest per annum at 3% plus the prime rate of Security Bank and Trust Company. . . . Provided that if there occurs any change in the prevailing market rates the new interest rate shall be the guiding rate of computing the interest due on the outstanding obligation without need of serving notice to the Cardholder other than the required posting on the monthly statement served to the Cardholder.

The Cardholder hereby authorizes Security Diners to correspondingly increase the rate of such interest in the event of changes in prevailing market rates and to charge additional service fees as may be deemed necessary in order to maintain its service to the Cardholder.

- claims that the terms “rates” are ambiguous and obscure, violated laws on Central Bank Circulars, there was bad faith from diner’s club

A contract of adhesion is one in which one of the contracting parties imposes a ready-made form of contract which the other party may accept or reject, but cannot modify. One party prepares the stipulation in the contract, while the other party merely affixes his signature or his "adhesion" thereto, giving no room for negotiation and depriving the latter of the opportunity to bargain on equal footing.

Admittedly, the contract containing standard stipulations imposed upon those who seek to avail of its credit services was prepared by Diners Club. There is no way a prospective credit card holder can object to any onerous provision as it is offered on a take-it-or-leave-it basis. Being a contract of adhesion, any

ambiguity in its provisions trust be construed against private respondent.

- these are considered ordinary binding contracts since the party to adheres to the contract is free to reject it

- is the contract one sided? No . it’s parties agreed upon the stipulation and petitioner did not specify what provision was in question

- it’s not an escalation clause since it refers to the prevailing market rate. Does not state all increase / decrease in rate

- Escalation clauses are not basically wrong or legally objectionable as long as they are not solely potestative but based on reasonable and valid grounds. It is beyond the control of any of the parties.

What is the effect of impossible conditions? Illegal conditions?

Art. 1183. Impossible conditions, those contrary to good customs or public policy and those prohibited by law shall annul the obligation which depends upon them. If the obligation is divisible, that part thereof which is not affected by the impossible or unlawful condition shall be valid.

The condition not to do an impossible thing shall be considered as not having been agreed upon.

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Question: A promised B to give his car if B can hold the sun. Can B demand the fulfillment of the donation?

Art. 727. Illegal or impossible conditions in simple and remuneratory donations shall be considered as not imposed.

- impossibility may be physical or juridical

-physical if contrary to the laws of nature. Juridical if contrary to law, morals, good customs, public policy and order

- intention determines if the act is illicit

- impossibility must exist at the time of the creation of the obligation - illogical conditions – is the logical impossibility in an obligation although the condition is not impossibility (I will deliver to you my house if it is destroyed) - divisible obligations – part not affected by the impossible or unlawful obligation shall be valid

- negative impossible conditions – considered to have been agreed upon. Does not need to wait upon the conditions.

When are conditions deemed fulfilled?

Art. 1184. The condition that some event happen at a determinate time shall extinguish the obligation as soon as the time expires or if it has become indubitable that the event will not take place. (1117)

Positive condition – refers to the fulfillment of an event or performance of an act

Negative condition – refers to the non-fulfillment or non-performance of an act.

POSITIVE SUSPENSIVE CONDITION The obligation is extinguished:

1. As soon as the TIME EXPIRES without the event taking place;

2. As soon as it has become certain that the EVENT WILL NOT TAKE PLACE although the time specified has not yet expired.

Where no period stated – 2nd paragraph of 1185 is applicable

Art. 1185. The condition that some event will not happen at a determinate time shall render the obligation effective from the moment the time

indicated has elapsed, or if it has become evident that the event cannot occur.

If no time has been fixed, the condition shall be deemed fulfilled at such time as may have probably been contemplated, bearing in mind the nature of the obligation. (1118)

1184 (Positive Suspensive) 1185 (Negative Suspensive) A obliges himself to give B some

money if B recites on or before June 30

A obliges himself to give B some money if B will not recite on June 30

A liable if B recites on or before June 30

A is not liable if B recites on June 30

A is not liable if B recites after June 30 A is liable if B did not recite on June 30

Art. 1186. The condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfillment. (1119)

- This provision speaks of the DOCTRINE OF CONSTRUCTIVE FULFILLMENT Requisites

- intent of the obligor to prevent the fulfillment of the condition - actual prevention of compliance

- when the act (voluntary), did not have for its purpose the prevention of the condition, this article is not applicable

- if in preventing the fulfillment of the condition, the debtor acts pursuant to a right, the condition will not be deemed as fulfilled

- when the condition is resolutory but not dependent on the will of the debtor, and he unjustifiably provokes or produces the condition, which would not have happened without his doing so, uit will be considered as not having been fulfilled and there will be no extinguishment of rights.

Does the fulfillment of a condition have retroactive effect?

Art. 1187. The effects of a conditional obligation to give, once the condition has been fulfilled, shall retroact to the day of the constitution of the

obligation. Nevertheless, when the obligation imposes reciprocal prestations upon the parties, the fruits and interests during the pendency of the

condition shall be deemed to have been mutually compensated. If the obligation is unilateral, the debtor shall appropriate the fruits and interests received, unless from the nature and circumstances of the obligation it should

Oblicon Reviewer

CIVIL OBLIGATIONS

General

What is an obligation?...2

Sources of Obligation……….………….2

Duties of Obligor……….…..…….5

Kinds of Obligations

Pure and Conditional……….………14

Obligations with a Period………..19

Alternative………..……….24

Joint and Solidary………26

Divisible and Indivisible……….………….28

Obligations with a Penal Clause………..……….29

Extinguishment of Obligations

Payment or Performance……….……….31

Loss of the Thing Due………..34

Condonation or Remission………..35

Confusion or Merger of Rights…….…..……….37

Compensations……….………..37

Novation………..42

Prescription………47

Agreement……….53

Difficulty……….………….54

Impossibility………...………..55

Other Performance Excuses

Volenti Non Fit Injuria………55

Fortuitous Event………..….56

NATURAL OBLIGATIONS

What is a natural obligation?...58

CONTRACTS

General

What is a contract?...60

Kinds of contracts……….………..69

Stipulation Pour Autrui……….……..75

Tortious Interference………77

Essential Requisites

Consent……….………..…….………….81

Object……….………....87

Cause……….………..…88

Reformation of Instruments

Defective Contracts

Rescissible……….……….….90

Voidable……….………..96

Unenforceable………..……….101

Void………104

OBLIGATIONS AND CONTRACTS

Block B2014 Finals Reviewer

Prof. Solomon Lumba

TABLE OF CONTENTS

Contents

B. Obligations with a Period ... 19

CIVIL OBLIGATIONS