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OUTLINE IN CIVIL LAW REVIEW II
2nd SEMESTER, SY 2013-2014
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OBLIGATIONS and CONTRACTS
PART I - OBLIGATIONS
I. In General
A. Nature
1. Definition, NCC 1156
2. Sources, NCC 1157
(a) Law, NCC 1158
(b) Contract, NCC 1159
PSBA v CA, GR 84698, Feb. 4, 1992
(c) Quasi-Contract, NCC 1160
(d) Delict, NCC 1161
(d) Quasi-Delict, NCC 1162
Barredo v Garcia, 73 Phil. 607 (1942)
Gutierrez v Gutierrez, No. 34840, September 23, 1931
B. Nature and Effect of Obligations
1. Kinds of Prestations
a. To give, NCC 1163-1166
(i) Rules regarding improvement, loss, or deterioration,
NCC 1189, 1190, 1194, 566-571
b. To do, NCC 1167
Chavez v Gonzales, 32 SCRA 547
Tanguilig v CA, 266 SCRA 78 (1997)
c. Not to do, NCC 1168
2. Irregularity in Performance
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a. Attributable to Debtor, NCC 1170

(i) Fraud (dolo), NCC 1170, 1171, cf. NCC 1338
Woodhouse v Halili, 93 Phil 526 (1953)
Geraldez v CA, 230 SCRA 329 (1994)
(ii) Effects of fraud
(A) Specific Performance, NCC 1233
(1) Specific/determinate thing, NCC 1244,
1170, 1165 (1), 11767
(2) Generic thing, NCC 1246
(3) Preserve, NCC 1163
(4) Deliver all its accessions, NCC 1166,
1164
(5) Interest, NCC 1176
(6) Deliver all its accessories, NCC 1166
(B) Substituted performance, NCC 1165(3)
(C) Rescission, NCC 1191-1192, 1786, 1788,
1484-1486, RA 6552
Boysaw v Interphil Promotions, 148 SCRA 364
(1987
U.P. v De los Angeles, 35 SCRA 365 (1970)
Vda. de Mistica v Sps. Naguiat, 418 SCRA 72
(2003)
(D) Damages, NCC 1170
(1). Unilateral obligations, NCC 1171
(2). Reciprocal obligations, NCC 1192
(iii) Negligence (culpa), NCC 1173, 1172,
(iv) Effects of Negligence, 1170, 2201, 2202, 1233,
1191, 1170
Gutierrez v Gutierrez, 56 Phil 177 (1932)
Vasquez v Borja, 74 Phil 560 (1944)
(v) Delay (mora), NCC 1169
SSS v Moonwalk, G.R. No. 73345. April 7, 1993
(vi) Kinds of delay
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(A) mora solvendi, NCC 1169

Abella v Gonzaga, 55 Phil 447 (1931)
Santos Ventura Hocorna Foundation v Santos, GR
153004, November 4, 2004
Vasquez v Ayala Corp., GR 149734, November 19, 2004
(B) mora accipiendi
Vda. de Villaruel v Manila Motor Co., 104 Phil
926 (1958)
Tengco v CA, GR 49852, October 19, 1989
(C) compensatio morae
Central Bank v CA, 139 SCRA 46 (1985)
(b) Not attributable to the debtor
(i) Fortuitous event, NCC 1174, 1221, 1165(2)
Nakpil v CA, L-47851, October 3, 1986
(c) Other Provisions, NCC 1175, 1957, 1413, 1961, 1176
(d) Remedies of creditors
(i). Levy and execution, NCC 1177, 2236
(ii). Accion Subrogatoria, NCC 1177, 772
(iii). Accion Pauliana, NCC 1177, 1380-1389
Khe Hong Cheng v CA, 355 SCRA 701 (2001)
Siguan v Lim, 318 SCRA 725 (1999)
(iv). Accion Directa, NCC 1652, 1729, 1608, 1893
3. Transmissibility, NCC 1178
II. KINDS OF OBLIGATIONS
1. According to demandability, NCC 1179-1192
(a) Pure obligations
(b) Conditional obligations
Gaite v Fonacier, 2 SCRA 830 (1961)
Gonzales v Heirs of Thomas, 314 SCRA 585
(1999)
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(i) Suspensive (condition precedent)

Gonzales v Heirs of Thomas, supra
Coronel v CA, 253 SCRA 15 (1996)
(ii) Resolutory (condition subsequent)
Parks v Prov of Tarlac, 49 Phil 142 (1926)
Central Philippines v CA, 246 SCRA 511 (1995)
Quijada v CA, 299 SCRA 695 (1998)
(A) Potestative
Lim v CA, 191 SCRA 156 (1990)
(B) Casual
Naga Telephone v CA, 230 SCRA 351 (1994)
(C ) Mixed
Osmena v Rama, 14 Phil 99 (1909)
Smith Bell v Sotelo Matti, 44 Phil 875
(1922)
Rustan Pulp v IAC, 214 SCRA 665 (1992)
Romero v CA, 250 SCRA 223 (1995)
(iii) Possible
(iv) Impossible
Roman Catholic Archbishop v CA, 198 SCRA 100
(1991)
(v) Positive
(vi) Negative
(vii) Divisible
(viii) Indivisible
(ix) Conjunctive
(x) Alternative
(xi) Express
(xii) Implied
C. Obligations with a term, NCC 1193-1198
1. Types
(a) With a suspensive period (ex die)
(b) With a resolutory period (in diem)
(c) Legal
(d) Voluntary
(e) Judicial, NCC 1197, 1191, 1687 (2,3,4 sentences), 1180
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Araneta v Phil Sugar Estate, 20 SCRA 330 (1967)

Central Philippines v CA, supra
(f) Express
(g) Tacit
(h) Original
(i) Grace
(j) Definite
(k) Indefinite
2. According to Plurality of Object, NCC 1199-1206
A. Alternative Obligations, NCC 199-1206
(i). Kinds
(a) Simple alternative, NCC 1199
(b) Facultative, NCC 1206
(ii). Right to choose
(a) In general, NCC 1200-1201, 1205
(b) Loss of right, NCC 1200, 1202-1203
(iii). Loss/Impossibility
(a) Liability for loss of thing/impossibility of
performance, NCC 1205
(b) Creditors right to indemnity for damages,
NCC 1204
3. According to Plurality of Subjects, NCC 1207-1222
A. Single
B. Joint
(a) General rule, NCC 1207
(b) Presumption, NCC 1208
(c) Indivisibility, NCC 1209
C. Solidary
(a) When solidary, NCC 1207
(b) Kinds
Lafarge Cement v Continental Cement, 443 SCRA
522 (2004)
4. According to Performance, NCC 1223-1225
A. Divisible/Indivisible Obligations

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5. According to Sanction for Breach, NCC 1226-1230

A. Obligations with a Penal Clause, 2226-2228

Lambert v Fox, G.R. No. L-7991, January 29, 1914
SSS v Moonwalk, supra
Robes-Franciscov CFI, G.R. No. L-41093 October 30,
1978
B. Characteristics of penal clause
(a) Subsidiary or alternative, NCC 1227
(b) Exclusive, NCC 1226
D. Extinguishment of Obligations, NCC 1231
1. Payment or performance, NCC 1232-1251)
a. As to prestation
(i) Identity
Exceptions:
(A) Dacion en pago, NCC 1245
(B) Novation
(ii) Integrity, NCC 1233, cf. 1234, 1235, 1254(2)
(iii) Indivisibility, cf. 1248, 1225(2), 1248, 1208, 1211,
1290, 1720, 2065.
(b) As to parties
(i) Payor, Obligor, Debtor
Effect if Third Person, NCC 1236-1238, 1427
(ii) Payee, Obligee, Creditor, NCC 1240, 1626
Effect if Third Person, NCC 1241-1242
(c) As to time and place of performance, NCC 1251, 1169
NOTE: 4 special forms of payment
(1). Dacion en pago, NCC 1245
Filinvest v Philippine Acetylene, 111 SCRA 421 (1982)
Tan Shuy v Sps Maulawin, GR 190375, February 2012
(2). Application of payments, NCC 1252-1254
Reparations Commission v Universal Deep Sea Fishing,
83 SCRA 764 (1978)
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Paculdo v Regalado, 345 SCRA 134 (2000)
(3). Cession, NCC 1255
(4). Tender of payment and consignation, NCC 1256-1261
Meat Packing Corp. v Sandiganbayan, 359 SCRA
409 (2001)
2. Loss of Thing Due, NCC 1262-1269
a. Impossibility of Performance
(i) Original
(ii) Supervening
3. Condonation or remission of the debt, NCC 1270-1274
Yam v CA, GR 104726, February 11, 1999
4. Confusion or merger of rights of the creditor, NCC 12751277
5. Compensation, NCC 1278-1290
Gan Tion v CA, 28 SCRA 235 (1969)
Mirasol v CA, 351 SCRA 44 (2001)
6. Novation, NCC 1291 1304
a. Subjective or Personal
Starbright Sales v Philippine Realty Corporation,
G.R. No. 177936, January 18, 2012
b. Objective or real
c. Mixed
7. Invalid payment, NCC 1243
8. Annulment
9. Rescission
10. Fulfillment of a Resolutory Condition
11. Prescription
12. Death in certain Instances
13. Renunciation by the creditor, NCC 6
14. Compromise
15. Arrival of a Resolutory Term
16. Mutual Desistance
Saura v DBP, April 27, 1972

\
17. Unilateral Withdrawal
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18. Change of Civil Status
19. Rebus Sic Stantibus, NCC 1267
Naga TelCO v CA, GR 107112, February 24, 1994
PNCC v CA, GR 116896, May 5, 1997
Osmena v SSS, GR 165272, Sept. 13, 2007
So v FoodFest, GR 183268, April 7, 2010
21. Want of Interest
22. Judicial Insolvency
Part II - CONTRACTS

A. General Provisions
1. Definition, NCC 1305
GSIS v CA, 228 SCRA 183 (1993) START HERE
2. Characteristics
a. Obligatory force, NCC 1315, 1314
b. Mutuality, NCC 1308-1310
c. Relativity, NCC 1311
Exceptions:
(i) Accion Pauliana
(ii). Accion Directa
(iii) Article 1312
(iv) Stipulation pour autrui, NCC 1311(2)
d. Autonomy of will, NCC 1306
Capalla v COMELEC, GR 201112, June 2012
(concurring of J. Sereno)
3. Elements of a Contract
a. Essential, NCC 1318
(i) Consent of the contracting parties, NCC 1319
(ii) Offer, NCC 1321, 1323-1326
(iii) Acceptance, NCC 1320, 1322, 1319
Rosenstock v Burke, 46 Phil 217 (1924)
Sanchez v Rigos, 45 SCRA 368 (1972)
Malbarosa v CA, 402 SCRA 108 (2003)
Traders Royal Bank v Cuison, June 5, 2009
(iv) Object, NCC 1347 1349
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Blas v Santos, 1 SCRA 899 (1961)

Tanedo v CA, 252 SCRA 80 (1996)
(v) Cause, NCC 1350 1355
Liguez v CA, 102 Phil 577 (1957)
Carantes v CA, 76 SCRA 524 (1977)
Sps. Buenaventura v CA, 416 SCRA 263 (2003)
NOTE; Natural Elements
(1) Right to resolve, NCC 1191
(2) Warranties in sales contracts
4. Stages of a Contract, NCC 1315, 1316
5. Classification of Contracts
a. According to degree of dependence
(i) Preparatory
(ii) Principal
(iii) Accessory
b. According to Perfection
(i) Consensual
(ii) Real
c. According to their Form
(i) Common or informal
(ii) Special or formal
d. According to purpose
(i) Transfer of ownership
(ii) Conveyance of use
(iii) Rendition of service
e. According to Subject Matter
(i) Things
(ii) Services
f. According to the Nature of the Obligation
(i) Bilateral
(ii) Unilateral
g. According to Cause
(i) Onerous
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h. According to Risk
(i) Commutative
(ii) Aleatory
i. According to Name
(i) Nominate
(ii) Innominate, NCC 1307
Dizon v Gaborro, 83 SCRA 688 (1978)

B. Form or Contracts, NCC 1356-1358

Hernaez v de Los Angeles, 27 SCRA 1276 (1969)
1. For validity
2. For enforceability
3. For registrability
C. Reformation of Instruments, NCC 1359-1369
Garcia v Bisaya, 97 Phil 609 (1955)
Bentir v Leande, 330 SCRA 591 (2000)
Sarming v Dy, 383 SCRA 131 (2002)
D. Interpretation of Contracts, NCC 1370 1379, Rule 130, Secs. 10-19,
Rules of Court
E. Defective Contracts
1. Rescissible Contracts, NCC 1380-1389
Oria v McMicking, 21 Phil 243 (1912)
Universal Food Corp. v CA, 33 SCRA 1 (1970)
Siguan v Lim, 318 SCRA 725 (1999)
2. Voidable Contracts, NCC 1390 1402
Caldwallader v Smith, Bell, 7 Phil 461 (1907)
Singsong v Isabela Sawmill, 88 SCRA 623 (1979)
Velarde v CA, 361 SCRA 56 (2001)
Ratification, NCC 1392-1396:
Uy Soo Lim v Tan Unchuan, 38 Phil 552 (1918)
a. Incapable of giving consent, NCC 1327
b. Insanity, NCC 1328-1329
c. Mistake, NCC 1330-1343
d. Violence, NCC 1335(1)
e. Intimidation, NCC 1335(2)
f. Undue influence, NCC 1337
g. Fraud, NCC 1332, 1338-1344

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Roman Catholic Church v Pante, April 11, 2012

3. Unenforceable Contract, NCC 1403 1408, 1317

PNB v Phil. Vegetable Oil, 49 Phil 857 (1927)
Carbonnel v Poncio, 103 Phil 655 (1958)
Limketkai v CA, March 29, 1996
Swedish Match v CA, 441 SCRA 1 (2004)
4. Void Contracts, NCC 1409-1410, 1411-1412, 1413-1416, 14171419, 1420- 422
a. NCC 1345-1346
b. NCC 1490-1491
c. NCC 1378
d. NCC 1409
e. NCC 1422
f. NCC 1782
g. FC 87
Liguez v CA, supra
Rellosa v Gaw Cheen Hum, 93 Phil 827 (1953)
Frenzel v Catito, 406 SCRA 55 (2003)
Contracts of Adhesion
Piltel v Tecson, May 7, 2004
TRUSTS
A. Express Trusts, NCC 1444-1446
Julio v Dalandan, Oct. 30, 1957
Cabacungan v Laigo, 2011
B. Resulting or Implied Trust, NCC 1447-1454, 1457
De Buencamino v De Matias, April 30, 1966
Huang v CA, 236 SCRA 420
Cabacungan v Laigo, supra
Juan v Yap, 2011
C. Constructive Trusts, NCC 1456, 1455, 1807
Diaz v Gorricho, GR 11229, March 29, 1958
Nakpil v IAC, 225 SCRA 456
Lopez v CA, 574 SCRA 26
Cabacungan v Laigo, supra
Juan v Yap, 2011
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SPECIAL CONTRACTS
SALES
1. Essential Requisites - NCC 1505
Sanchez v Mapalad Realty, 541 SCRA 397
Hernandez-Nievera v Hernandez, 643 SCRA 646 (2011)
2. Voidable Title - NCC 1506
3. Double Sales - NCC 1544
De Leon v Ong, 611 SCRA 381 (February 2, 2010)
Roman Catholic Church v Pante, supra
4. Sale of Movables - NCC 1484 - 1486
Tajanglangit v Southern Motors, 54 O,G, No. 8, p. 2582
Filinvest v Phil. Acetylene, 111 SCRA 421 (1982)
De La Cruz v Asian Consumer 214 SCRA 103
5. Option to Buy/Sell - NCC 1479, 1324
Sanchez v Rigos, supra
Eulogio v Apeles, 576 SCRA 561
Tuazon v del-Rosario-Suarez, GR 168325, December 3, 2010
PUP v Golden Horizon, 615 SCRA 478 (2010)
Archbishop Capalla v COMELEC, 2011
6. Right of First Refusal
Equatorial v Mayfair, 264 SCRA 483 (1996)
Paranaque King v CA, 268 SCRA 727 (1997)
5. Earnest Money NCC 1482
Cifra v CA, 198 SCRA 91
Serrano v Caguiat, 517 SCRA 57
7. Equitable Mortgage, NCC 1602, 1603, 1604
Arches v Diaz, April 30, 1973
8. Capacity to Contract, NCC 1491
Dir. v Ababa, February 27, 1979
Laig v CA, November 21, 1978
9. Redemption - NCC 1619-1623
Butte v Uy, February 28, 1962
Conejero v CA, April 29, 1966
Alonzo v CA, May 29, 1987 (supra, Family Relations)
10. Rep. Act 6552, An Act To Provide Protection To Buyers Of Real Estate
On Installment Payments.

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11. Waivers/Warranties. NCC 1592, 1191
Laforteza v Machuca, 333 SCRA 643 (2000)
Sison v CA, August 15, 1988

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12. Contract of Sale/Contract to Sell

Sps. Valenzuela v Kalayaan, GR 163244, June 22, 2009
Montecalvo v Heirs of Eugenia Primero, 624 SCRA 575 (July 9,
2010)
13. Sale v Agency
Sps. Viloria v Continental, January 2012
14. Assignment of Credits, NCC 1624-1635
LEASE
NCC 1649-1653
Manlaraz v Salazar, 52 O.G. No.2, p. 802
Nava v Yaptinchay, 44 O.G. No. 9, p. 3332
Sime Darby v Goodyear, 2011
Aludos v Suerte, 2012
COMMON CARRIERS
NCC 1745, 1749, 1753-1766
Phoenix Assoc. v Macondray, May 13, 1975
Air France v Carrascoso, September 28, 1966
Shewaram v PAL, July 7, 1966
CARRIAGE OF GOODS BY SEA ACT
Eastern Shipping Lines v IAC, May 29, 1987
Samar Mining Co. v Nordeutscher, 132 SCRA 530
New World v NYK-FilJapan, 2012
WARSAW CONVENTION
PANAM v Rapadas, 209 SCRA 67
Santos v NWO, 210 SCRA 256
MARITIME LAW
Vasquez v CA, 138 SCRA 553
CONTRACT FOR A PIECE OF WORK
NCC 1467, 1725-1726, 1729, 1723
Nakpil and Sons v CA, 144 SCRA 596
PARTNERSHIP
1. Existence, NCC 1769, 1782
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Yulo v. Yang, August 28, 1959
Heirs of Jose Lim, GR 172690, March 3, 2010
J. Tiosejo v Sps. Aug, GR 174149, September 8, 2010
Realubit v Jaso, 2011

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2. NCC 1797, 1799-`1803, 1816-1824

Island Sales v. Pioneers, July 31, 1975, 65 SCRA 554
3. NCC 1832-1834
Singsong v. Isabela Sawmill, supra
4. NCC 1844, 1852
AGENCY
1. Scope of Authority, NCC 1883
NFA v. IAC, 184 SCRA 166
Bormahec v Abanes, 52 SCRA 73
Phil Countryside v Toring, 2000
2. Extinguishment, NCC 1927, 1980
Dela Rama SS v. Tan, May 21, 1956, 99 PHIL 1034
Perez v. PNB. July 30, 1966, 17 SCRA 835
Lim v Saban, GR 163720, December 16, 2004
COMPROMISE
1. Void - NCC 2035, 2037, 2041
Samonte v. Samonte, June 25, 1975, 64 SCRA 24
PREFERENCE OF CREDIT
1. NCC 2241-2251
NCC 110, Labor Code
Carried Lumber v. ACCFA, April 22, 1975, 63 SCRA 411
Consuelo Metal v Planters, 555 SCRA 465
2. Insolvency Law, Act. No. 1956 as amended
Gateway Electronics v Asiabank, 574 SCRA 698
CREDIT TRANSACTIONS
1. Common Provisions NCC 1156, 1249, 1305, 1306, 1316, 1933 and
1934
2. Commodatum NCC 1935-1952
Pajuyo v CA, 430 SCRA 492
3. Simple Loan or Mutuum, NCC 1953-1955
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Equitable v Ng Sheung Ngor, 541 SCRA 223
Almeda v Bathala Marketing, 542 SCRA 470

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4. Interest, NCC 1956-1961, 2209, 2212-2213

Castello v CA, 224 SCRA 180
Pilipinas Bank v CA, 225 SCRA 268
5. Chattel Mortgage, NCC 2140-2141
PNB v. Manila Investment, April 29, 1971, 38 SCRA 462
Pameca Wood v CA, 310 SCRA 281
6. Real Estate Mortgage, Act 3135 as amended
Isaguirre v de Lara, 331 SCRA 803
7. Pledge, NCC 2093-2123
Ong v Roban Lending, 557 SCRA 516
8. Guaranty and Suretyship, NCC 2157-2081
Phil-Am v. Ramos, February 28, 1966, 16 SCRA 298
Toh v Solid Bank, 408 SCRA 554
Autocorp Group v Intra Strata, 556 SCRA 250
9. Deposit, NCC 1962-1967
YHT Realty v CA, 451 SCRA 638
10. Truth in Lending Act
UCPB v Beluso, 530 SCRA 567
11. Usury Law and CB Circular No. 416
Carpo v Chua, 471 SCRA 471
TORTS
1. Definition of Tort
Vinzons-Chato v Fortune, 525 SCRA 11
2. Elements of Tort
Garcia v Salvador, 518 SCRA 568
Ocean Builders v Spouses Cubacub, GR 150898, April 13, 2011
3. Tort/Quasi-Delict
Coca Cola Bottlers v CA, 227 SCRA 292
4. Doctrine of Proximate Cause
Calalas v CA, GR No. 122039, May 31, 2009
Consolidated Bank v CA, 410 SCRA 562
5. Negligence
PNR v Brunty, 506 SCRA 685
PNR v CA, GR No. 157658, October 15, 2007
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6. Degrees of Negligence
Ilao-Oretav Ronquillo, 535 SCRA 633
7. Standard of Conduct
Sicam v Jorge, GR No. 159617, August 8, 2007
Corinthian Gardens v Spouses Tanjangco, GR 160795, June 27,
2008
8. Special Circumstance
Heirs of Completo v Albayda, GR 172200, July 6, 2010
Pacis v Morales, GR 169467, Feb. 25, 2010
9. Res Ipsa Loquitur
Professional Services v Agana, 513 SCRA 478
CAP v Belfrantl, 538 SCRA 27
10. Contributory negligence of plaintiff
NPC v Heirs of Casionan, GR No. 165969, November 27, 2008
Lambert v Heirs of Ray, 452 SCRA 285
11. Fortuitous event
Southeastern College v CA, 292 SCRA 422
12. Plaintiffs assumption of risk/volenti non fit injuria
Calalas v CA, GR No. 122039, May 31, 2009
Pantaleon v American Express, GR 174269, Aug. 25, 2010
13. Tests to determine proximate cause
Lapanday v Angala, 525 SCRA 229
14. Vicarious Liability
a. Parents/Guardians
Libi v IAC, 214 SCRA 16
b. Teachers
St. Josephs College v Jayson Miranda, GR 182353, June 29,
2010
Aquinas School v Inton, GR 184202, Jan. 26, 2011
c. Owners/Managers of Establishments/ Employers
Mercury Drug v Huang, 525 SCRA 427
15. Interference with contractual relations
Lagon v CA, 453 SCRA 616
Go v Cordero, GR 164703, May 4, 2010
16. Damages, NCC 2195-2196, 2198
Custodio v CA, 235 SCRA 483

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17. Actual or compensatory, NCC 2199
Oceaneering Contractors v Baretto, GR 184215, Feb. 9, 2011

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18. Death by crime or quasi-delict, NCC 2206

People v Apacible, GR 189091, Aug. 25, 2010
Crisostomo v People, GR 171526, Sept. 1, 2010
Philippine Hawk v Lee, GR 166869, Feb. 16, 2010
19. Attorneys fees, NCC 2208
Sps Andrada v Pilhino Sales, GR 156448, Feb. 23, 2011
Pan Pacific v Equitable, GR 169975, March 18, 2010
20. Moral Damages, NCC 2209-2213
Sps Valenzuela v Sps Mano, GR 17266, July 9, 2010
Sulpicio Lines v Curso, GR No. 157009, March 17, 2010
Sps Valenzuela v Sps Mano, GR 17266, July 9, 2012
Regala v Carin, GR 188715, April 6, 2011
21. Nominal Damages
Sps Guanio v Makati Shangri-La, GR 190601, Feb. 7, 2011
People v Marquez, GR 181440, April 13, 2011
22. Temperate damages
Tan v OMC Carriers, GR 190521, Jan. 12, 2011
Serrano v People, GR 1752021, July 5, 2010
23. Liquidated damages, NCC 2226
Pentacapital v Mahinay, GR 171736, July 5, 2010
24. Exemplary/Corrective damages, NCC 2230
People v Capanas, GR 172321, Feb. 9, 2011

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