012511 020111 1.

rescissible/ voidable obligation may be compensated until annulled effects of voidable retroacts effect at the time of the execution of the contract requires mutual restitution 2. assignment of compensation (happens automatically) lack of requisites, no legal compensation but voluntary compensation BEFORE assignment A to B and A to C compensation AFTER assignment w/o the knowledge of debtor, debtor can invoke w. knowledge w/o consent- prior credits ,may set up but after the assignment he may not compensate w/ consent debtor cannot invoke w/ knowledge, w/ consent 3. Facultative Compensation creditor declares his option to set up compensation. Article 1287 support in arrear valid compensation Commodatum: define Depositum: define Coluntary compensation Liability arising from criminal offense, offended may set up compensation but not the offender 4. Novation

Expromission Delegacion Objective novation Additional penal cause AJAx Marketing case 5. Expromision :define

Passive subjective novation

Rights of the new debtor 6. delegacion rights of the new debtor 7. Insolvency of New debtor
020211 1. effect of accessory obligation

Memorize Article 1294

2. new obligation is void; old obligation subsist EXP when stipulated; old obligation is voidable 3. old and new obligation are subject tocondition 4. A owes B P1000 and C P2000, C paid B for P500, How much will C recover from A? P3000. Partialsz/ B did not sell entire credit -in case of insolvency, the preferred creditor must be paid first 020911 1. Article 1305 contract Source of obligation Autocontract Characteristics (AMOR) Autonomy Mutually Obligatory Relativity 2. Consensual contract: define Real contract: define 3. Aleatory contract: define 4. Nominate contract: define and examples 5. Innominate contracts: define and kinds 6. Essential Elements of Contracts 7. Natural elements 8. Accidental elements 9. Restraint in trade depends on time, place, space necessary for protection 10. Ferrazini v. Gsell -limitation of affinity of common carrier in goods; shipping 1. stipulation by common carrier shall not be liable 2. common carries subject to absolutely limiting the liability for loss (not valid) Bill of lading use of maritime shipping; receipt issued for the goods delivered Ysmael and Co. v. Barreto Valid stipulation in carrier (carriage of goods) o Stipulation that both parties shall agree of values. Limitation: the shipper wanted a higher value of his goods Cui v. Arellano 11. Mutuality of contracts, Article 1309 Equally of contracting parties Consequences o Cannot be left to the will of the one of the parties o May be left to the will of the 3rd person o Can be left to hantice 11. relataivity EXPN: by nature; by stipulation of the parties; by provision of law (p380 of Jurado book)

Pour autri 12. 4 EXPNL instances where a contract may produce effect wither directly/ indirectly on the 3rd persons a. stipulation in favor of 3rd parties Requisites: 1. stipulation in favor of 3rd person 2. stipulation must be a part of contract 3. contracting parties deliberately confessed or in favor upon the 3rd person 4. 3rd person must have the acceptance of the offeror 5. neither parties bears legal representative of the 3rd person b. 3rd person come into possession of the objectof the contract creating a real right c. contract entered to defraud a 3rd person i. Article 1191 ii. Article 1311 d. 3rd peron induces a contracting party to 3rd person 020811 1. Article 1319, memorize! Counter-offer terminates by subsequent counter offer 2. Theories of Manifestation of Acceptance a. Manifestation declaration of offeree b. Expedition transmit the letter to offeror c. Reception offeror gets hold of the letter d. Cognition actual knowledge of acceptance Presumption: constructive knowledge 3. Amplified acceptance additional order by the offerer with the same price; matter of intention of parties but the intention to buy less than the said number of pieces, there is no perfected contract. 4. Withdrawal of offer GR: offeror can withdraw the offer EXP: offeree has not accepted the contract Laudico v. Arias 5. option with consideration. Article 1324 021411 1. RMA case WON validity of offer and acceptance Held: Yes, renewal of contract Option to contract o A party is given an option with consideration to withdraw or accept the contract o The offeror must give sufficient time (good faith) Option if founded a consideration o Offeror cannot withdraw his proposal Remember Article 1325

contract 2. persons who cannot give consent: a. unemancipated minors b. insane, demented and deaf-muted - if a person cant write, can he read? - When a person knows how to read, is it possible that he dont know how to write? - In both instances, what is valid? GR: minor cannot enter into a contract Status: Voidable contract A minor cannot impugn a validity of contract; if there is a passive misrepresentation (define) active misrepresentation a child must have look like of age 3. Contracts may be vitiated by: a. Fraud insidious words and machinations of 1 of the contracting parties i. Kinds 1. Dolo causante fraud employed by a party into a contract in security of consent; deceptions that without which, the enter of contract would not take place 2. Dolo incidente deception in serious character without which the party may still enter into a contract Fraud committed by 3rd person GR: no fraud; EXP: substantial mistake Opinions of an expert; GR: not liable; EXP: if employed by the party. Article 1341 Usual Exaggerations b. Intimidation (Article 1335) parties compelled by reasonable fear Vitiated consent Favorable Difference of Mistake of Fact and Mistake of Law c. Undue influence d. Violence 4. Simulated Contract creation of condition with juridical existence of contract but in reality does not exist i. Kinds 1. Relative hide the intention of parties. (valid) 2. Absolute no intention (void) 5. OBJECT of the contract: define a. Within the commerce of men b. Transmissible c. Licit d. Possible i. Absolute impossibility void

Article 1326: Advertisement must be specific to have a perfected

ii. Relative Impossibility valid 6. Future inheritance cannot be an object of contract 021611 1. What is the CAUSE of a contract? Definition and reason Cause v. Object - service or benefit which is -thing given in remuneration renumerated the contract of sale does not talk about purchase price, it is a valid contract; if the contract is silent, presumption of consideration is rebuttable cause v. motive -direct and most proximate -indirect -objective and juridical -psychological/ personal -legality of will validates/ - it does not invalidate the contract Liguez v. CA May a mere promise constitute a sufficient consideration? 2. Form of contracts Contracts in writing for its validity o Donation of personal property o Sale of parcel of land through an aent o Agreement regarding the interest therein in contract of loan o Antichresis; define The following must be in public document: o Donation of immovable/ real property o Partnership where immovable or real rights are contributed in common fund The following must be Registered: o Chattel mortgage o Sale of large cattle Can you compel the donor to make a public document despite of having a private document? Article 1357 o It must be perfected first. o Must be put into a valid contract for its efficacy but the form is not necessary for its validity 3. Reformation of Instrument Instances where there is no reformation o Simple donation wherein no condition is impose o Will o Real agreement is void Filing of action to reform and enforcement , simultaneously, is possible because the reformed contract is to be enforced 022211 1. voidable contract: define

distinguishment from rescissible contract kinds of voidable contracts Felipe v. Heirs of Aldon o The ruling is no longer applicable due to the new provision in family code about the absolute community. Period of prescription Ratification of voidable contracts Requisites of ratification, P 547 of Jurado book Kinds of ratification: express and implied Guilty party

022811 1. What is unenforceable contract 2. Contracts covered by Statute of Frauds (par. 2, Article 1403) a. Agreement by its terms not to be performed within 1 year form the making thereof b. Special promise to answer for the debt c. Agreement made in consideration of marriage or promise to marry d. Agreement to sale of good, chattels not less than P500 e. Leasing property for a loner period than 1 year f. Dsfd Coverage of collateral principal debtor is not released from the debt because he is bind by surety or mortgage. Oral partitions not included in Statue of Frauds Contracts which have not been executed; it must be in writing and subscribed by the parties concerned; parol evidence (if not objected the existence of such evidence shall be deemed accepted by the party) May be enforceable by partial commission 3. Memorize Article 1403 4. Void and inexistent contract: define Void v. Inexistent All requisites are present but one or some or all those requisites The cause id contrary to law, that are essential are absolutely Morals, good customs, etc. lacking 5. Article 1409, void and inexistent contracts 6. Principle of In pari delicto fault by both parties; definition 7. Do void contracts may have a legal effect? Yes. In pari delicto, the knowledgeable fault of the parties cannot go to the court and ask for an action against the other party. 8. Natural Obligations, Article 1423: define 9. Estoppel, Article 1431 -admission or representation is rendered conclusive upon making it