OBLIGATIONS AND CONTRACTS

Course Outline
Atty. Bernice Piñol
2nd Semester SY 2017-2018

WEEK 1

PART 1: PRESCRIPTION
(Articles 1106-1155)

A. Definition
B. Types
a. Extinctive Prescription
b. Acquisitive Prescription
C. Doctrine of Laches
a. Prescription vs. Laches
D. Interruption of Prescriptive Period
E. Actions which do not prescribe

CASES:
1. PLDT v. Pingol, G.R. No. 182622, Sept. 8, 2010
2. Lourdes Suites v. Binarao, G.R. No. 204729, August 06, 2014
3. China Banking Corp. v. Commissioner of Internal Revenue, G.R. No. 172509,
February 4, 2015

WEEK 2

PART 2: OBLIGATIONS

A. General Provisions
 Definition (Art. 1156)
 Sources
a. Law
 (Art.
 1158)

b. Contracts
 (Art.
 1159,
 1305)

c. Quasi‐contracts
 (Art.
 1160,
 2142)

Kinds:
i. Negotiorum
 gestio
 (Art.
 2144)

ii. Solutio
 indebiti
 (Art.
 2154)

iii. Others
 (Art.
 2164
 to
 2175)



d. Delicts
 or
 Crime
 (Art.
 1161)

 e. Quasi‐delicts
 (Art.
 1162,
 2176)

 Distinction
 between
 crimes
 and
 quasi‐delicts

 Vicarious
 liability
 (Art.
 2180,
 Art.
 218‐219,
 Family
 Code)

 Civil
 liability
 arising
 from
 crime
 (Art.
 1161;
 Rule
 111,

RoC)


CASES:
1. Amadora v. CA, 160 SCRA 315 (1988)
2. PSBA v. CA, 205 SCRA 729 (1992)

 Nature
 and
 Effects
 of
 Obligations


1. Kinds
 of
 Prestation
 

a. To
 give
 

i. specific
 thing

 to
 preserve
 the
 thing
 (Art.
 1163)

 to
 deliver
 the
 accessions
 and
 accessories
 (Art

 1166)
 to
 deliver
 the
 fruits
 (Art.
 1164,
 par.
 1)

 to
 deliver
 the
 thing
 itself
 (Art.
 1244)

ii. generic
 thing
 (Art.
 1246)



b. To
 do
 (Art.
 1244)

c. Not
 to
 do
 (Art.
 1244)
 Transmissibility (Art. 1178)

 Classifications

 Civil, Natural Obligations (Art. 1423-1430)

CASES:
1. Villaroel v. Estrada, 71 Phil 140 (1940)
2. Fisher v. Robb, 69 Phil 101 (1939)

 Pure
 and
 Conditional
 Obligations
 (Art.
 1179‐1192)


 With
 a
 Period
 or
 a
 Term
 (Art.
 1193‐1198)

 Alternative
 and
 Facultative
 (Art.
 1199‐1206)

 Joint
 and
 Solidary
 (Art.
 1207‐1222)

 Divisible
 and
 Indivisible
 (Art.
 1223‐1225)

 With
 a
 Penal
 Clause
 (Art.
 1226‐1230)



  Breach of Obligations
 Concept/Distinction
o Standard of care/diligence (Art. 1163, 1173)
CASES:
1. De Guia v. Manila Electric Co., 40 Phil 706 (1920)
2. US v. Barias, 23 Phil 434 (1912)
3. Sarmiento v. Sps. Cabrido, 401 SCRA 122 (2003)
4. Crisostomo v. CA, 409 SCRA 528 (2003)

o Types of Breach
o Substantial
o Casual
CASES:
1. Song Fo v. Hawaiian Philippines, 47 Phil 821
(1925)
2. Velarde v. CA, 361 SCRA 56 (2001)
3. Golden Valley v. Pinkian Mining, GR No.
190080, June 11, 2014
4. Villamar v. Mangaoil, GR No. 188661, April
11, 2012

WEEK 3

 Modes of Breach
o Fraud (dolo): 1171
CASES:
a. Woodhouse v. Halili, 93 Phil 526 (1953)
b. Geraldez v. CA, 230 SCRA 329 (1994)
c. Tankeh v. DBP, GR No. 171428, Nov. 11, 2013
d. Watercraft v. Wolfe, GR No. 181721, Sept. 9, 2015
e. Security Bank v. Great Wall, GR No. 219345, Jan. 30, 2017

o Negligence (culpa): 1171-73, 2201.2

CASES:
1. Gutierrez v. Gutierrez, 56 Phil 177 (1932)
2. Vasquez v. Borja, 74 Phil 560 (1944)
3. Sarmiento
 v.
 Spouses
 Cabrido,
 401
 SCRA
 122
 (
2003)

4. Crisostomo
 v.
 Court
 of
 Appeals,
 409
 SCRA
 528

 (2003)
5. Sps. Batal v. Sps. Tominaga, GR No. 164601, Sept. 27,
2006
6. BPI Family v. Franco, GR No. 123498, Nov. 23, 2007
7. Mendoza v. Sps. Gomez, GR No. 160110, June 18, 2014
 o Delay (mora)
a. Mora solvendi (Art. 1169)
CASES:
1. Cetus Development Corp. v. CA, 176 SCRA 72
(1989)
2. Santos Ventura Hocorna Foundation v.
Santos, GR 153004, 04 Nov 2004
3. Vasquez v. Ayala Corp., GR 149734, 19 Nov
2004
4. Abella v. Francisco, 55 Phil 447 (1931)
5. Pantaleon v. American Express, GR No.
174269, May 8, 2009
b. Mora accipiendi
CASES:
1. Vda. de Villaruel v. Manila Motor Co., 104 Phil
926 (1958)
2. Tengco v. CA, GR 49852, 19 Oct 1989
3. Pantaleon v. American Express, GR No.
174269, May 8, 2009
c. Compensatio morae
CASES:
1. Central Bank v. CA, 139 SCRA 46 (1985)
2. Cortes v. CA, GR No. 126083, July 12, 2006

o Contravention of tenor of obligation

CASES:
1. Chavez v. Gonzales, 32 SCRA 547 (1970)
2. Telefast v. Castro, 158 SCRA 445 (1988)
3. Arrieta v. NARIC, 10 SCRA 79 (1964)
4. Magat v. Medialdea, GR L-37120, 20 Apr 1983
5. Ong v. Bogalbal, GR No. 149140, Sept. 12, 2006
6. Heirs of Gaite v. The Plaza Inc., GR No. 177685, Jan. 26,
2011
7. Continental Cement v. Asea Brown Boveri, GR No.
171660, Oct. 17, 2011

WEEK 4

 Remedies in case of Breach

 Performance: 1165
o Obligation to Give
o Specific performance
a. To deliver
 Specific/determinate thing (Art. 1244, 1170,
1165.1, 1176)
 generic thing (Art. 1246)
b. To preserve (Art. 1163)
c. To deliver all its accessions (Art. 1166, 1164)
  Interest (Art. 1176)
o Exception:
o Usury (Art. 1175 , 1413)
o PD 858, PD 1685
o Central Bank Circular 416
o Monetary Board Circular 905

CASES:
1. Eastern Shipping Lines v. CA, 234 SCRA 781
(1994)
2. Security Bank v. RTC Makati, 263 SCRA 453
(1996)
3. Almeda v. CA, 256 SCRA 292 (1996)
4. Keng Hua Products v. CA, 286 SCRA 257
(1998)
5. Cristina Garments v. CA, 304 SCRA 356
(1999)
6. First Metro Investment v. Estate of Del Sol,
420 Phil 902 (2001)
7. RCBC v. Buenaventura, GR No. 176479, Oct.
6, 2010
8. Marquez v. Elisan Credit Corp., GR No.
194642, April 6, 2015

d. To deliver all its accessories (Art. 1166)

o Substituted performance (Art. 1165.3)

o Obligation to Do (Art. 1167)

CASES:
1. Chavez v. Gonzales, 32 SCRA 547 (1970)
2. Tanguling v. CA, 266 SCRA 78 (1997)
3. Continental Cement v. Filipinas Systems, GR No.
176917, Aug. 4, 2009
4. Heirs of Ramon Gaite v. The Plaza Inc., GR No.
177685, Jan. 26, 2011
5. Continental Cement v. Asea Brown Boveri, GR No.
171660, Oct. 17, 2011
o Obligation Not to Do (Art. 1168)

 Damages (Art. 1170)

o Unilateral obligations (Art. 1171)
o Reciprocal obligations (Art. 1192)

WEEK 5

 Rescission (Art. 1191-92)

CASES:
1. Boysaw v. Interphil Promotions, 148 SCRA 365 (1987)
 2. U.P. v. de los Angeles, 35 SCRA 365 (1970)
3. De Erquiaga v. CA, 178 SCRA 1 (1989)
4. Angeles v. Calasanz, 135 SCRA 323 (1985)
5. Ong v. CA, 310 SCRA 1 (1999)
6. Visayan Sawmill v. CA, 219 SCRA 3 78 (1993)
7. Deiparine v. CA, 221 SCRA 503 (1993)
8. Iringan v. CA, 366 SCRA41 (2001)
9. Vda. de Mistica v. Sps. Naguiat, 418 SCRA 73 (2003)
10. Golden Valley v. Pinkian Mining, GR No. 190080, June 11,
2014
11. Calilap-Asmeron v. DBP, GR No. 157330, Nov. 23, 2011
12. PEZA v. Pilhino Sales Corp., GR No. 185765, Sept. 28, 2016

o See also Art. 1786, 1788, 1484-86, RA 6552

 Subsidiary Remedies
o Accion Subrogatoria (Art. 1177, 772)
o Accion Pauliana (Art. 1177, 1381)
CASES:
1. Khe Hong Seng v. CA, 355 SCRA 701 (2001)
2. Siguan v. Lim, 318 SCRA 725 (1999)
3. Anchor Savings v. Furigay, GR No. 191178, March 13,
2013
o Others (Art. 1652, 1729,1608,1893)

 Extinguishment of Liability (Art. 1174)

o Exceptions (Art. 1174, cf. 1165, 552, 1942, 1979, 2001 , 2147)
CASES:
1. Juan Nakpil & Sons v. CA, 144 SCRA 597 (1986)
2. Republic v. Luzon Stevedoring, 21 SCRA 279 (1967)
3. Dioquino v. Laureano, 33 SCRA 65 (1970)
4. Yobido v. CA, 281 SCRA 1 (1997)
5. Austria v. CA, 39 SCRA 527 (1971)
6. NPC v. CA, GRL-47379, 161 SCRA334 (1988)
7. Bacolod-Murcia Milling v. CA, 182 SCRA 24 (1990)
8. Philcomsat v. Globe Telecom, 429 SCRA 153 (2004)
9. Gaisano v. Insurance Company of North America, GR No.
147839, June 8, 2006
10. Fil-Estate v. Sps. Ronquillo, GR No. 185798, Jan. 13, 2014

 Effect of loss/deterioration/improvement of thing subject of obligation (Art. 1189,

1194, 566-71)

WEEK 6

B. Extinguishment of Obligations
 Payment or performance (Art. 1231.1)
o Definition (Art. 1232)
CASES:
1. Arrieta v. NARIC, 10 SCRA 79 (1964)
2. Kalalo v. Luz, 34 SCRA 377 (1940)
3. St. Paul Fire and Marine Insurance v. Macondray, 70 SCRA
122 (1976)
4. Papa v. A.V. Valencia, 284 SCRA 643 (1998)
5. PAL v. CA, 181 SCRA557 (1990)
6. Cinco v. CA, GR No. 151903, Oct. 9, 2009
o How made
o Ways, 1233, 1248-1250
o No substitution, 1244, 1246
o Costs/ expenses, 1247
o By whom
o Debtor
o 3rd person, 1236-39, 1427
o To whom
o Creditor, 1240-41
o 3rd person, 1241-42
o Where made, 1251
 Application, 1252-54
CASES:
1. Reparations Commission v. Universal Deep Sea Fishing, 83
SCRA 764 (1978)
2. Paculdo v. Regalado, 345 SCRA 134 (2000)
3. Premiere Devt. v. Central Surety, GR No. 176246, Feb. 13,
2009
4. Sps. Calina v. DBP, GR No. 159748, July 31, 2007
5. Abella v. Abella, GR No. 195166, July 8, 2015
 Invalid payment, 1243
 Other forms of payment
o Cession, 1255
o Dation in payment, 1245
CASES:
1. DBP v. CA, GR 118342, 05 Jan 1998
2. Filinvest Credit Corp. v. Philippine Acetylene, 111 SCRA
421 (1982)
3. Tan Shuy v. Sps. Maulawin, GR No. 190375, Feb. 8, 2012
4. Ramos v. PNB, GR No. 178218, Dec. 14, 2011
5. Sps. Villaluz v. Land Bank, GR No. 192602, Jan. 18, 2017
o Tender of payment and consignation
 Requisites, 1256-57
 How made, 1258
 Effect of withdrawal, 1260-61
 Effect of valid consignation, 1259-60
CASES:
1. De Guzman v. CA, 137 SCRA 730 (1985)
2. TLG International Continental Enterprising Inc. v.
Flores, 47 SCRA 437 (1972)
3. McLaughlin v. CA, 144 SCRA 693 (1986)
4. Soco v. Militante, 123 SCRA 160 (1983)
 5. Sotto v. Mijares, 28 SCRA 17 (1969)
6. Meat Packing Corp. v. Sandiganbayan, 359 SCRA
409 (2001)
7. Pabugais v. Sahijwani, 423 SCRA 596 (2004)
8. Banco Filipino v. Diaz, GR No. 153134, June 27,
2006

 Loss of thing due/Impossibility of performance, 1231.2

o Loss of thing due (obligation to give)
o Obligation to deliver a determinate thing, 1262, 1268-69
o Obligation to deliver a generic thing, 1263
o Partial loss, 1264
o Presumptions, 1265, 1165
o Impossibility of performance (obligation to do), 1266-67
CASES:
1. Occena v. CA, 73 SCRA 637 (1976)
2. Naga Telephone Co. v. CA, 230 SCRA 351 (1994)
3. PNCC v. CA, 272 SCRA 183 (1997)
4. Asian Construction v. PCIB, GR No. 153827, April 25, 2006
5. De Leon v. Ong, GR No. 170405, Feb. 2, 2010

 Condonation or remission of the debt, 1231.3

o Characteristics, 1270
CASE: Yam v. CA, GR 104726, 11 Feb 1999
o Creditor's renunciation of action, 1271-72, 1274
o Effect, 1273
CASE: Sps. Carpo v. Chua, GR No. 150773 & 153599, Sept. 30, 2005

 Confusion or merger of rights of the creditor (1231.4)

o Requisites, 1275
o Effects on guarantors, 1276
o Effects on obligation, 1277

WEEK 7

 Compensation (1231.5)
o Concept. 1278, 1286, 1289-90
o Requisites, 1279, 1287-88, 1282-84
CASES:
1. Gan Tion v. CA, 28 SCRA 235 (1969)
2. Silahis Marketing v. lAC, 180 SCRA 29 (1989)
3. BPI v. Reyes, 255 SCRA 571 (1996)
4. PNB v. Sapphire Shipping, 259 SCRA 174 (1996)
5. Mirasol v. CA, 351 SCRA 44 (2001)
6. Trinidad v. Acapulco, GR No. 147477, June 27, 2006
7. Montemayor v. Millora, Gr No. 168251, July 27, 2011
8. Union Bank v. DBP, GR No. 191555, Jan. 20, 2014
o Kinds, 1281
 o 3rd persons' interests
o Guarantor (of the debt), 1280
o Assignee (of the credit), 1285

 Novation (1231.6)
o Concept, 1291-92
o Changing their object or principal conditions (objective novation),
1292
CASES:
1. Miller v. CA, 38 SCRA 642 (1971)
2. Dormitorio v. Fernandez, 72 SCRA 388 (1976)
3. Magdalena Estate v. Rodriguez, 18 SCRA 967 (1966)
4. Reyes v. Secretary of Justice, 264 SCRA 35 (1996)
5. Conchingyan v. RB Surety and Insurance, 151 SCRA
339 (1987)
6. Broadway Centrum Condominium Corp v. Tropical
Hut, GR 79642, 05 Jul 1993
7. California Bus Lines v. State Investment, GR 14 79 50,
11 Dec 2003
8. Wellex v. U-Land, GR No. 167519, Jan. 14, 2015
9. CCC Insurance v. Kawasaki Steel, GR No. 156162,
June 22, 2015

o Substituting the person of the debtor (subjective novation), 1293-95

CASES:
1. Garcia v. Llamas, 417 SCRA 292 (2003)
2. Quinto v. People, GR 126715, 14 Apr 1999
3. SC Megaworld v. Parada, GR No. 183804, Sept. 11,
2013
4. Bognot v. RRI Lending, GR No. 180144, Sept. 24, 2014
5. Arco Pulp v. Lim, GR No. 206806, June 25, 2014

o Subrogating a 3rd person in rights of the creditor (subrogation), 1303

a. Legal, 1300, 1303
CASES:
1. Astro Electronics Corp v. Philippine Export
and Foreign Loan Guarantee Corp., GR
136729,23 Sep 2003
2. MBTC v. Rural Bank of Gerona, GR No.
159097, July 5, 2010

b. Conventional, 1300-01
CASES:
1. Licaros v. Gatmaitan, GR No. 142838, 09 Aug
2001
2. Ledonio v. Capitol Devt, GR No. 149040, July
4, 2007
o Effects, 1296-99, 1304

 Others (1231, p. 2)
o Annulment
 o Rescission
o Fulfillment of a resolutory condition
o Prescription

WEEK 8

A. Kinds of Obligations under NCC

 Pure obligations , 1179

 Conditional obligations, 1181-92

o Definition, 1181, 1193
CASES:
1. Gaite v. Fonacier, 2 SCRA 830 (1961)
2. Gonzales v. Heirs of Thomas, 314 SCRA 585 (1999)
3. Carrascoso v. CA, GR No. 123672, Dec. 14, 2005
o When effective/demandable, 1181-82, 1185-86
o Effects when condition fulfilled, 1187
o Types of conditions
o As to effect
a. Suspensive (condition precedent), 1188-89
CASES:
1. Gonzales v. Heirs of Thomas, 314 SCRA585 (1999)
2. Coronel v. CA, 253 SCRA 15 (1996)
b. Resolutory (condition subsequent), 1189-90
CASES:
1. Parks v. Province of Tarlac, 49 Phil 142 (1927)
2. Central Philippines University v. CA, 246 SCRA 511
(1995)
3. Quijada v. CA, 299 SCRA 695 (1998)
o As to cause/origin
a. Potestative, 1180, 1182, 1197
 CASE: Lim v. CA, 191 SCRA 156 (1990)
b. Casual
 CASE: Naga Telephone v. CA, 230 SCRA 351 (1990)
c. Mixed
CASES
1. Osmeña v. Rama, GR No. 14 Phil. 99 (1909)
2. Hermosa v. Longora, 93 Phil 971 (1953)
3. Rustan Pulp and Paper v. IAC, 214 SCRA 665 (1992)
4. Romero v. CA, 250 SCRA 223 (1995)
5. Catungal v. Rodriguez, GR No. 146839, March 23,
2011
o As to possibility
a. Impossible conditions, 1183
CASES:
1. Roman Catholic Archbishop of Manila v. CA, 198
SCRA 300 (1991)
 2. Heirs of San Miguel v. CA, GR No. 136054, Sept.
5, 2001
o As to mode
a. Positive, 1184
b. Negative, 1185

o When obligation ineffective

o When condition is not fulfilled, 1184
o When condition is void ab initio, 1182-83
o Rescission of reciprocal obligations, 1191-92, 1189

o Events pending happening of condition

o Protective action, 1188
o Loss, deterioration, improvement of the thing, 1190, 1189
o Prevention of fulfillment of the condition by obligor, 1189
CASES:
1. Taylor v. Uy Tieng Piao, 43 Phil 873 (1922)
2. Herrera v. Leviste, GR 55744, 28 Feb 1985
3. Mactan-Cebu Int’l Airport v. Lozada, GR No. 176625, Feb. 25,
2010

 Obligations with a Period (1193-98)

o In General
o Definition, 1193, 1197
o For whose benefit, 1196, 1198
CASES:
1. Lachica v. Araneta, 47 OG No. 11, 5699, 04 Aug 1949
2. Ponce de Leon v. Syjuco, 90 Phil 311 (1951)
3. Buce v. CA, 332 SCRA 151 (2000)
4. Phil. Bank of Communications v. Sps. Go, GR No. 175514,
Feb. 14, 2011
5. DBP v. Sta. Ines Melale, GR No. 193068, Feb. 1, 2017
o Kinds of period
a. Effect: suspensive, resolutory
b. Expression: express, implied
c. Definiteness: definite, indefinite
d. Source: voluntary, legal, judicial
o Types
o With a suspensive period (ex die), 1193
o With a resolutory period (in diem), 1193
o When courts may fix the duration, 1197
CASES:
1. Araneta v. Philippine Sugar Estate Development Co., 20 SCRA 330
(1967)
2. Central Philippine University v. CA, 246 SCRA 511 (1998)
3. Sec. of Education v. Heirs of Rufino Dulay, GR No. 164748, Jan. 27,
2006
o Incidents before arrival of period
o Loss, deterioration, or improvement of thing, 1194, 1189
o Payment in advance, 1195, 1197
WEEK 9

 Alternative Obligations (1199-1206)

o Kinds
o Simple alternative, 1199
o Facultative, 1206
o Right to choose
o In general, 1200-01, 1205
o Loss of right to choose, 1200, 1202-03
o Loss/Impossibility
o Liability for loss of thing/impossibility of performance, 1205
o Creditor's right to indemnity for damages, 1204

 Joint and Solidary Obligations (1207-22)

o Joint obligations
o General rule, 1207
o Presumption, 1208
o In case indivisible, 1209
o Solidary obligations
o When solidary, 1207
o Kinds
a. Source
 Legal, 1915, 1945,2194,RPC 119
 Conventional
 Real
b. Parties: active, passive, mixed
c. Uniformity
 Uniform
 Varied, 1211
CASES:
1. Ynchausti v. Yulo, 34 Phil 978 (1916)
2. Lafarge Cement Phil. v. Continental Cement, 443 SCRA 522
(2004)
3. Escao v. Ortigas, GR No. 151953, June 29, 2007
4. AFP Retirement v. Sanvictores, GR No. 207586, Aug. 17, 2016
o Solidary creditors' options
a. Can be done, 1212, 1216
b. Cannot be done, 1212-13
o Solidary debtors' options
a. Pay any one of the solidary creditors, 1214
b. Avail of defenses, 1222
CASES:
1. Ynchausti v. Yulo, 34 Phil 978 (1916)
2. Alipio v. CA, 341 SCRA 441 (2000)
3. Stronghold Insurance v. Republic-Asahi, GR No.
147561, June 22, 2006

o Extinguishment of solidary obligation (1215)

 o Change in obligation, 1215, 1219
o Payment, 1217-20
o Loss/impossibility, 1221
CASES:
1. Jauclan v. Querol, 38 Phil 718 (1918)
2. Quisumbing v. CA, 189 SCRA 325 (1990)
3. Inciong v. CA, 257 SCRA 578 (1996)

 Divisible/Indivisible Obligations (1223 -1225)

o Object not material, 1223
o How determined, 1225
o Right to damages, 1224
o Partial invalidation, 1183

 Obligations with a Penal Clause (1226-30)

o Kinds of penal clause
o Effect: subsidiary, complementary
o Source: conventional, legal
o Purpose: punitive, reparatory
o Purpose of penal clause
o Ancillary obligation, 1227
o Substitute for damages, 1226, 1228
CASES:
1. Makati Development Corp v. Empire Insurance Co., 20 SCRA
557 (1967)
2. Country Bankers Insurance v. CA, GR 85161, 09 Sept 1991
3. Tan v. CA, 367 SCRA 571 (2001)
4. Continental Cement v. Asea Brown Boveri, GR No. 171660,
Oct. 17, 2011
5. Rivera v. Sps. Salvador, GR No. 184458, Jan. 14, 2015

o When penalty enforceable, 1226-27

o Reduction of penalty by the judge, 1229
o Nullification of penalty, 1230

WEEK 10 - 11

PART II: CONTRACTS

A. Concept
 Definition, 1305
CASE: GSIS v. CA, 228 SCRA 183 (1993)

 Kinds
 By name
o Nominate
o lnnominate, 1307
CASES:
 1. Dizon v. Gaborro, 83 SCRA 688 (1978)
2. Almario v. PAL, GR No. 170928, Sept. 11, 2007

 By perfection
o Consensual, 1315
o Real, 1316
 By subject matter: things, services
 By relationship to other contracts: preparatory, principal, accessory
 By nature of the vinculum produced: unilateral, bilateral, reciprocal
 By cause: onerous, gratuitous

 Essential Requisites, 1318

1. Consent of contracting parties
 Definition, 1319
a. Offer, 1321, 1323-26
b. Acceptance, 1320, 1322
CASES:
1. Rosenstock v. Burke, 46 Phil 217 (1924)
2. Malbarosa v. CA, 402 SCRA 168 (2003)
3. Sanchez v. Rigos, 45 SCRA 368 (1972)
4. Adelfa Properties v. CA, 240 SCRA 565 (1995)
5. Jardine Davies v. CA, GR 389 Phil 204 (2000)
6. Tan v. Planters Products, GR No. 172239, March 28, 2008
7. Talampas v. Moldex Realty, GR No. 170134, June 17, 2015
o State of contracting parties
o Who cannot give consent, 1327-29
 Vitiated consent, 1328, 1330,
a. State of drunkenness, 13 28
b. During a hypnotic spell, 1328
c. Mistake, 1330-34
CASES:
1. Theis v. CA, GR 126013, 12 Feb 1997
2. Heirs of William Sevilla, et al v. Sevilla, 402
SCRA 503 (2003)
3. Hemedes v. CA, 316 SCRA 34 7 (1999)
4. Katipunan v. Katipunan, 375 SCRA 200 (2002)
5. Cebu Winland v. Ong Siao Hua, GR No.
173215, May 21, 2009
6. Roman Catholic v. Pante, GR No. 174118,
April 11, 2012
d. Violence, 1330, 1335-36
CASES:
1. Martinez v. HSBC, 15 Phil 252 (1910)
2. Toledo v. Hyden, GR No. 172139, Dec. 8,
2010
3. Quintos v. DBP, GR No. 168258, Aug. 17,
2015

e. Intimidation, 1330, 1335-36

f. Undue influence, 1330, 1337
 g. Fraud, 1330, 1344
 Active fraud, 1338, 1340-43
CASES:
1. Azurraga v. Gay, 52 Phil 599
(1928)
2. Braganza v. Villa Abrille, 105
SCRA 456 (1959)
3. Laureta Trinidad v. IAC, 204
SCRA 524 (1991)
4. Sps. Tongson v. Emergency
Pawnshop, GR No. 167874, Jan. 15,
2010
5. Tankeh v. DBP, GR No. 171428,
Nov. 11, 2013
6. ECE Realty vs. Mandap, GR No.
196182, Sept. 1, 2014
 Passive fraud, 1332, 1339
CASES:
1. Tuason v. Marquez, 45 Phil 381
(1923)
2. Rural Bank of Sta. Maria v. CA,
314 SCRA 255 (1999)
3. Leonardo v. CA, GR No. 125485,
Sept. 13, 2004
4. Calilap-Asmeron v. DBP, GR No.
157330, Nov. 23, 2011

2. Object certain, 1347-49

CASES:
1. Bias v. Santos, 1 SCRA 899 (1961)
2. Tanedo v. CA, 252 SCRA 80 (1996)
3. Camacho v. CA and Banzon, GR No. 127520, Feb. 9, 2007
4. Arrogante v. Deliarte, GR No. 152132, July 24, 2007
5. Sps. Villaluz v. Land Bank, GR No. 192602, January 18, 2017

3. Cause of the obligation, 1350-55

CASES:
1. Liguez v. CA, 102 Phil 577 (1957)
2. Carantes v. CA, 76 SCRA 524 (1977)
3. Sps. Buenaventura et al v. CA, 416 SCRA 263 (2003)
4. Capistrano vs. Sumiran, GR No. 152413, Feb. 13, 2009

WEEK 12

 In General

 Contracting parties, 1308, 1312, 1317

CASES:
 1. Gutierrez Hermanos v. Orense, 28 Phil571 (1914)
2. Sps. Silos v. PNB, G.R. No. 181045, July 02, 2014

 Perfection, 1315-16
 Privity of contracts, 1309-14
CASES:
1. Coquia v. Fieldmen's Insurance Co., 26 SCRA 178 (1968)
2. Constantino v. Espiritu, 39 SCRA 206 (1971)
3. Florentino v. Encarnacion, 79 SCRA 192 (1977)
4. So Ping Bun v. CA, 314 SCRA 751 (1999)
5. Integrated Packaging Corp. v. CA, 333 SCRA 171 (2000)
6. DKC Holdings Corp. v. CA, 329 SCRA 666 (2000)

 Form & Substance

 Form of contract, 1356-58

CASE:
1. Hernaez v. De los Angeles, 27 SCRA 127 6 (1969)
2. Estate of Pedro Gonzales vs. Heirs of Marcos Perez, GR. No. 169681,
Nov. 5, 2009

 Stipulations
o Freedom of contract, 1306,1490-91,1782,1799, 2088, 2130, Family Code 87
CASES:
1. Pakistan International Airlines v. Ople, 190 SCRA 90 (1990)
2. Filipinas Compania de Seguros v. Mandanas, 17 SCRA 391
(1966)
3. Bustamante v. Rosel, 319 SCRA 413 (1999)
4. Saudi Arabian Airlines v. Rebesencio, G.R. No. 198587,
January 14, 2015

o Interpretation
 Plain meaning, 1370
 Evident intention, 1370-71
 Stipulations with different possible meanings, 1375
 Interpretation of terms, 1372-73, 1376-77
 Settlement of doubts, 1374, 1378
 Application of the Rules of Court, 1379
CASES:
1. Kasilag v. Rodriguez, 69 Phil 217 (1939)
2. Borromeo v. CA, 47 SCRA 65 (1972)
o Simulation of contracts, 1345-46
CASES:
1. Suntay v. CA, 251 SCRA 430 (1995)
2. Blanco v. Quasha, 318 SCRA373 (1999)
3. Villegas vs. Rural Bank of Tanjay, G.R. No. 161407, June 5,
2009
4. Heirs of Mario Intac vs. CA, G.R. No. 173211, Oct. 11, 2012
  Reformation
o Requisites, 1359, 1365, 1368
CASES:
1. Garcia v. Bisaya, 97 Phil 609 (1955)
2. Beutir v. Leande, 330 SCRA 591 (2000)
3. Multi-Ventures Capital vs. Stalwart, G.R. No. 157439, July 4,
2007
o When not allowed, 1365, 1367
o Concurrence of grounds, 13 61 -62
o 3rd party fault, 1364
o Applicable law, 1350, 1369
CASES:
1. Atilano v. Atilano, 28 SCRA 2232 (1969)
2. Carrantes v. CA, 76 SCRA 524 (1977)
3. Sarming et al v. Dy et al, 383 SCRA 131 (2002)
4. Malana vs. Tappa, G.R. No. 181303, Sept. 17, 2009

WEEK 13 - 14

B. Defective Contracts

 Rescissible Contracts
 Nature, 1383-85
 When rescissible, 1380-82, 1386-87
CASES:
1. Siguan v. Lim et al, 318 SCRA 725 (1999)
2. Suntay v. CA, 251 SCRA 430 (1995)
3. The Wellex Group vs. U-Land Airlines, G.R. No. 167519
January 14, 2015
 When available, 1385, 1388
 Prescription, 1389

 Voidable Contracts
 Nature, 1390
 Parties, 1397, 1402
CASES:
1. Singsong v. Isabela Sawmill, 88 SCRA 623 (1979)
2. Velarde v. CA, 361 SCRA 56 (2001)
 Ratification, 1392-96
CASES:
1. Spouses Fernando v. Continental Airlines, G.R. No. 188288,
January 16, 2012
2. ECE Realty and Development vs. Mandap, G.R. No. 196182
September 1, 2014
 Effect of loss of thing due, 1400-01
 Effect of annulment, 1398-99
 Prescription, 1391
 Unenforceable Contracts
 Nature, 1317
 When unenforceable, 1403, 1405
CASES:
1. Carbonnel v. Poncio, 103 Phil 655 (1958)
2. Limketkai Sons Milling Inc. v. CA, 261 SCRA 464 (1995)
3. Swedish Match v. CA, 441 SCRA 1 (2004)
4. Iglesia Filipina Independiente v. Heirs of Bernardino Taeza, G.R.
No. 179597, February 03, 2014
5. San Miguel Properties v. BF Homes, G.R. No. 169343, August 05,
2015

 Who may bring action, 1408

 Ratification, 1317, 1407
CASES:
1. Philippine
 National
 Bank
 v.
 Philippine
 Vegetable
 Oil
 C
o.,
 49 Phil.
 857
 (1927)
2. Carbonnell
 v.
 Poncio
 et
 al,
 103
 Phil.
 655
 (1958)

3. First
 Philippine
 International
 Bank
 v.
 Court
 of
 Appeal
s,
 252
 SCRA
 259

 Form, 1406

 Void/Inexistent Contracts
 Nature, 1409-10, 1420

 When void/inexistent, 1345-46, 1490-91 , 1378, 1409, 1422, 1782, FC 87

CASES:
1. Gonzalo v. Tarnate, G.R. No. 160600, January 15, 2014
2. Quintos v. DBP and PNB, G.R. No. 168258, August 17, 2015
3. Clemente v. Court of Appeals and Jalandoon, G.R. No. 175483,
October 14, 2015

 Remedies, 1413-16
CASES:
1. Liguez v. CA, 102 Phil 577 (1957)
2. Rellosa v. Gaw Cheen Hum, 93 Phil 827 (1953)
3. PNB v. Lui She, 21 SCRA 52 (1967)
4. Frenzel v. Catitu, 406 SCRA 55 (2003)
5. Fullido v. Grilli, G.R. No. 215014, February 29, 2016
 Who may bring action/defense, 1411-12, 1421 ,
CASES:
1. Ubarra v. Mapalad, AM MT J 91-622 ( 1993)
2. Modina v. CA, 317 SCRA 606 (1999)
3. Constantino vs. Heirs of Constantino, G.R. No. 181508
October 2, 2013
 Contracts imbued with public interest, 1417-19