Art. 1106 Art. 1107 Art. 1108 Art. 1109 Art. 1110 Art. 1111 Art. 1112 Art.

1113 Art. 1114 Art. 1115 Art. 1116 Art. 1117 Art. 1118 Art. 1119 Art. 1120 Art. 1121 Art. 1122 Art. 1123 Art. 1124 Art. 1125 Art. 1126 Art. 1127 Art. 1128 Art. 1129 Art. 1130 Art. 1131 Art. 1132 Art. 1133 Art. 1134 Art. 1135 Art. 1136 Art. 1137 Art. 1138 Art. 1139 Art. 1140 Art. 1141 Art. 1142 Art. 1143 Art. 1144 Art. 1145 Art. 1146 Art. 1147 Art. 1148 Art. 1149 Art. 1150 Art. 1151 Art. 1152 Art. 1153

Prescription acquisition/loss through lapse of time Persons capacitated to acquire through prescription; minors and incapacitated Persons against whom prescription run No prescription between husband and wife, parents and children (minority/insanity), guardians and wards Against a married woman Prescription obtained by co-proprietor/co-partner Renunciation of prescription already obtained Prescription: things within the commerce of man; not non-patrimonial property of state Prescription despite renunciation of debtor (eg. guarantors right) No prejudice to other provisions Transitory provision: shorter period Acquisitive prescription: ordinary (possession in good faith + just title), extraordinary Adverse possession: in concept of an owner, public, peaceful, uninterrupted Possession: license or tolerance of owner no prescription Interruption: Naturally or civilly Natural interruption more than one year, not revived if same adverse claimant Natural interruption (effect): one year or less in favour of prescription Civil interruption receipt of judicial summons Judicial summons deemed not issued Possessors recognition of owners rights interruption Title recorded in Registers of Property, Land Registration Act Good faith reasonable belief that the person from whom he received the property is the owner Conditions of good faith Just title adverse claim of possession through modes recognized by law Title true and valid Title must be proven Prescription of movables: ordinary 4years, extraordinary 8 years; owners right to recover No prescription for movables possessed through a crime Immovable property: ordinary prescription 10 years Discrepancy in measurement of the land/area prescription will be based on possession Possession in wartime/ civil courts closed in favour of prescription Immovables: extraordinary prescription 30 years Computation of time Prescription of action (civil actions) Action to recover movables 8 years (unless property already prescribed in 4 years Art. 1132) Action to recover immovables 10 years ( unless property already prescribed in 10years Art. 1134) Mortgage action 10 years Actions which do not prescribed: right of way, and abate a public or private nuisance Actions prescribing in 10 years written contract, obligation by law, judgment Actions prescribing in 6 years oral contract, quasi-contract Actions prescribing in 4 years injury to the rights of the plaintiff, quasi-delict Actions prescribing in 1 year- forcible entry and detainer, defamation Art. 1140-47 without prejudice to other provisions, code of commerce, special laws Actions with no fixed period 5 years Prescription, without provision to the contrary, shall be counter from the day it may be brought Action to enforce obligation to pay principal with interest or annuity from day of last payment Action to enforce obligation by virtue of judgment from day of finality of judgment Action for accounting from the day accounting ceased; result of accounting from day result recognized by interested parties

Art. 1154 Art. 1155

Time when oblige was prevented by fortuitous event from enforcing his rights not counted against him Prescription of action interrupted: case filed in court, written extrajudicial demand, written acknowledgment of debt Obligation Sources of obligation (law, contracts, quasi-contracts, crimes, quasi-delicts Law never presumed (clear, specific, exact) Contracts need compliance in good faith Quasi-contracts Crimes civil liability attaching to crimes Quasi-delicts (torts) negligence resulting to damages Duty to take care diligence of a good father of a family Rights to the fruit Determinate: specific performance to deliver + damages; indeterminate: compliance at the expense of debtor; obligor delays or promised the object to 2 persons: responsible for fortuitous events until delivery (exception to the rule on fortuitous event) Delivery of determinate includes accessions and accessories Failure to do done at his cost; not required to be done may be undone Obligation not to do, but was done undo at obligors expense Delay from time oblige demands ; cases when no demand is necessary Damages fraud, negligence, delay, contravention of tenor of contract Fraud in the performance of obligation waiver for future fraud is void Negligence Negligence in the omission of diligence with bad faith = fraud Fortuitous event Usurious transactions Receipt of principal without reservation presumption: interest has been paid Receipt of later instalment presumption: prior instalments has been paid Creditors may go against debtors of the debtors Rights acquired by virtue of obligation transmissible Pure obligation; obligation with resolutory condition demandable at once To pay when means permit him to do so deemed to be with a period (court) Conditional obligation Fulfilment of condition depending on will of debtor obligation void; chance and will of third person Impossible obligation annul obligation save for parts of divisible obligation Condition: at a determinate time happening extinguish Condition: at a determinate time not to happen effective Acts of prevention by obligor constructive fulfilment Effects of suspensive condition retroact to the day of constitution of obligation appropriate fruits and interests; reciprocal obligation mutual compensation Creditor preservation of right prior fulfilment; recover payment by mistake Rules in case of improvement, loss or deterioration Condition: purpose is for extinguishment of obligation to give return what they have received Rescission of contract implied in reciprocal obligation; creditor choice between rescission or rd fulfilment +damages; without prejudice to 3 persons st Both parties breached the contract: 1 infractor; if cant be determined- bear own damages, exting. Obligations with a period Loss, deterioration, improvement Art. 1189 Anything paid by mistake before due may be recovered with fruits and interests Period presumed as established for creditor and debtor unless otherwise stated

Art. 1156 Art. 1157 Art. 1158 Art. 1159 Art. 1160 Art. 1161 Art. 1162 Art. 1163 Art. 1164 Art. 1165

Art. 1166 Art. 1167 Art. 1168 Art. 1169 Art. 1170 Art. 1171 Art. 1172 Art. 1173 Art. 1174 Art. 1175 Art. 1176 Art. 1177 Art. 1178 Art. 1179 Art. 1180 Art. 1181 Art. 1182 Art. 1183 Art. 1184 Art. 1185 Art. 1186 Art. 1187 Art. 1188 Art. 1189 Art. 1190 Art. 1191 Art. 1192 Art. 1193 Art. 1194 Art. 1195 Art. 1196

Art. 1197 Art. 1198 Art. 1199 Art. 1200 Art. 1201 Art. 1202 Art. 1203 Art. 1204 Art. 1205 Art. 1206 Art. 1207 Art. 1208 Art. 1209 Art. 1210 Art. 1211 Art. 1212 Art. 1213 Art. 1214 Art. 1215 Art. 1216 Art. 1217 Art. 1218 Art. 1219 Art. 1220 Art. 1221 Art. 1222 Art. 1223 Art. 1224 Art. 1225 Art. 1226 Art. 1227 Art. 1228 Art. 1229 Art. 1230 Art. 1231 Art. 1232 Art. 1233 Art. 1234 Art. 1235 Art. 1236 Art. 1237 Art. 1238 Art. 1239

No period, depend on will of debtor - court Debtor lose right to period in the following cases...(guarantees/sureties, abscond) Alternative obligation complete performance of one; creditor cant be compelled to receive partial Right of choice debtor; no right to choose: impossible, unlawful, not the object of obligation Choice no effect until communicated Lose right of choice when only one is practicable Creditors prevents choice of debtor debtor may rescind Indemnity for loss/impossibility through the fault of debtor value of last thing which disappeared + other damages Creditors choice ceases to be alternative upon communication to debtor Responsibilities of debtor in case of loss of objects Facultative obligation one prestation agreed upon with substitute; deterioration of substitute Solidary liability only when expressly stated, or by law of nature of obligation Absent stipulation/law/nature joint obligation divided into shares Joint indivisible obligation creditors must act collectively Indivisibility of obligation does not give rise to solidarity and vice versa Solidary even if bound is different manner, period, condition Each solidary creditor may do what may be useful to the others Solidary creditor cant assign his rights with consent of others Debtor may pay any creditor, if demand was made, pay creditor who demanded Novation, compensation, confusion or remission of the debt extinguish liability towards others Creditor may proceed after any one/some/all of solidary debtor Payment by one debtor extinguishes obligation, creditor may choose whose offer to accept, debtor may reimburse from other debtor, insolvency shouldered by others in proportion to debt Payment made after prescription/illegal no reimbursement Remission by creditor debtor still responsible to co-debtors Remission of whole obligation no reimbursement Object lost/impossible without fault of solidary debtors extinguished; with fault all responsible + action against guilty debtor; fortuitous after impossible/ delay all responsible + action Solidary debtor all defences from nature of obligation or personal Divisibility/indivisibility + one debtor and one creditor chapter2 Joint divisible obligation indemnity any time one debtor fail to comply, those ready to pay shall no contribute Indivisible: definite things insusceptible of partial performance; divisible: measurable/partial (unless stipulated otherwise); not to do character of obligation Penal clause penalty substitute indemnity + interest; damages refuse to pay penalty or fraud Cants exempt from performance by paying penalty; not simultaneous with performance Proof of actual damages not necessary Judge equitably reduce penalty (iniquitous and unconscionable) Nullity of penal clause no nullity of principal; nullity of principal nullity of penal Extinguishment of obligation Payment Not deemed paid unless thing/service has been completely delivered Substantial performance in good faith deemed as fulfilled + damages Acceptance of substantial performance without express protest fulfilled + no damages rd rd Creditor not bound to accept payment by 3 persons; 3 person may reimburse from debtor except when paid without knowledge and consent recover only whats beneficial rd Payment by 3 person without knowledge/consent no subrogation of rights rd Payment by 3 person without intent to reimbursement = donation need consent Payment by person with no free disposal not valid ; minors can

Art. 1240 Art. 1241 Art. 1242 Art. 1243 Art. 1244 Art. 1245 Art. 1246 Art. 1247 Art. 1248 Art. 1249 Art. 1250 Art. 1251 Art. 1252 Art. 1253 Art. 1254 Art. 1255 Art. 1256 Art. 1257 Art. 1258 Art. 1259 Art. 1260 Art. 1261 Art. 1262 Art. 1263 Art. 1264 Art. 1265 Art. 1266 Art. 1267 Art. 1268 Art. 1269 Art. 1270 Art. 1271 Art. 1272 Art. 1273 Art. 1274 Art. 1275 Art. 1276 Art. 1277

Payment to = person in whose favour obligation was constitutes, successors in interest, authority Payment to incapacitated person valid kept the thing, beneficial; benefit need not be proven in... Payment in good faith to person in possession of credit release from obligation Payment after judicial order to retain debt invalid Debtor cant compel creditor to receive a different object; cant be substituted by another act against will of oblige Dation in payment Indeterminate/ generic cant demand superior quality or accept inferior quality Extrajudicial cost debtor; judicial cost court Creditor cant be compel to accept partial prestation/ debtor to make partial payment; part liquidated and part unliquidated Payment of debts in money stipulated currency or phil. currency; mercantile documents as payment only when encashed, impaired through fault of debtor Extraordinary inflation/deflation value at time of constitution of obligation, unless otherwise Place of payment stipulation, location of thing, domicile of debtor change in domicile in bad faith or after delay cost by debtor Various debts, same kind, same creditor declaration, due; accepts a receipt cant complain after Debt with interest principal not paid until interest are covered Most onerous debt; all of same nature payment applied proportionately Cession assign property in payment of debts; released for net proceeds Consignation creditor to whom tender of payment made refuses without just cause; consignation alone in cases... st 1 notification to persons interested in fulfilment nd Consignation made by depositing thing due to judicial authority; 2 notification Expenses of consignation creditor Withdraw consigned object: before creditor accepted, before judicial declaration obligation remain Creditor authorize the debtor to withdraw lose preference over the thing, co debtors, sureties, guarantors released Determinate lost/destroyed w/o fault of debtor, before delay extinguished; responsible for fortuitous law, stipulation, risk damages Generic: loss/destruction not extinguished Courts - partial loss is so important as to extinguish obligation Lost in possession of debtor presumption of fault except in earthquake, flood, storm (calamity) Prestation becomes legally/physically impossible w/o fault of debtor released in whole or part Service has become so difficult as to be manifestly beyond the contemplation of the parties same Debt of thing certain criminal offense loss no exemption; unless offered back and creditor refused w/o justification rd Creditor have all rights of action of debtor against 3 persons by reason of loss (insurance) Condonation/remission requires acceptance (express/implied) Delivery of private document (credit) remission; defense against claim of inofficiousness voluntary delivery by virtue of payment Private document in possession of debtor presumption of voluntary delivery Renunciation of principal = also accessory Presumption of remittance of pledge if found in possession of debtor/owner Confusion/merger creditor and debtor in one and same person Merger of principal debtor and creditors release guarantor; debtor/creditor and guarantor not extinguished Confusion does not extinguish joint obligation; only extent of share

Art. 1278 Art. 1279 Art. 1280 Art. 1281 Art. 1282 Art. 1283 Art. 1284 Art. 1285 Art. 1286 Art. 1287 Art. 1288 Art. 1289 Art. 1290 Art. 1291 Art. 1292 Art. 1293 Art. 1294 Art. 1295 Art. 1296 Art. 1297 Art. 1298 Art. 1299 Art. 1300 Art. 1301 Art. 1302 Art.1303 Art. 1304

Compensation 2 persons are creditors and debtors of each other Requisites Guarantor may set up compensation as regards what the creditor may owe the principal debtor Total or partial compensation May agree upon compensation of debts not yet due Judicial set-off (damages) Compensation before rescission/nullity of obligation rd Assignment of credit by the creditor to 3 person Compensation by operation of law regardless of place; indemnity for expenses of transpo partial Not proper in case of debts: from depositorium, bailee in commodatum, support for gratuitous title No compensation in civil liability from penal offense Order of compensation follow order of payment Requisites in Art. 1279 present compensation by operation of law Novation: change object/principal condition, substitution debtor, subrogation of creditor Expressed in unequivocal terms, or that the old and new obligations be on every point incompatible with each other Substituting a debtor without his consent, but always with consent of creditor Substitution without knowledge/against the will of debtor insolvency/non-fulfilment of new debtor no liability on old debtor Substitution with consent creditor can go after debtor if insolvency was existing and of public knowledge, or known to the debtor when he delegated his debt rd Accessory obligation may subsist in so far as they benefit 3 persons who do not consent to novation New obligation is void, old will subsist; unless intended otherwise Novation is void if original obligation is void, except before annulment/when ratified Same suspensive/resolutory condition rd Subrogation of 3 person in the rights of creditor legal or conventional. Legal not presumed Conventional subrogation needs consent of 3d person and original parties rd Legal subrogation in cases: creditor to creditor credit buy off, disinterested 3 person w/ consent of debtor, interested person even w/o consent of debtor Subrogation transfers to the subrogated person the credit with all the rights of creditor Creditor to whom partial payment was given preferred over subrogated ( for reimbursement) partial rd payment by 3 person w/ consent

Art. 1305 Art. 1306 Art. 1307 Art. 1308 Art. 1309 Art. 1310 Art. 1311 Art. 1312 Art. 1313 Art. 1314 Art. 1315 Art. 1316 Art. 1317 Art. 1318 Art. 1319 Art. 1320 Art. 1321 Art. 1322 Art. 1323 Art. 1324 Art. 1325 Art. 1326 Art. 1327 Art. 1328 Art. 1329 Art. 1330 Art. 1331 Art. 1332 Art. 1333 Art. 1334 Art. 1335 Art. 1336 Art. 1337 Art. 1338 Art. 1339 Art. 1340 Art. 1341 Art. 1342 Art. 1343 Art. 1344 Art. 1345 Art. 1346 Art. 1347 Art. 1348 Art. 1349 Art. 1350 Art. 1351 Art. 1352

Contract meeting of the minds, to bind one self to perform an obligation Freedom to contract Innominate contracts no specific name/ delagtion in law (by analogous nominate contract) Contracts bind both parties rd Determination of performance by 3 person If determination is evidently inequitable the courts shall decide what is equitable Persons affected by a contract (G: parties, assigns, heirs; E: by nature, stipulation, law); stipulation pour atrui rd 3 persons are bound by contracts creating real rights Right of creditors to impugn contracts intended to defraud them rd Liability of 3 person responsible for breach of contract, induces another Perfection of contracts: consensual, real, solemn Perfection of real contracts delivery (deposit, pledge, commodatum) Unauthorized contracts are unenforceable unless ratified Requisites of a contract: consent, object, cause Consent (offer, acceptance, counter-offer) Acceptance express of implied Offerer may fix the time, place, and manner of acceptance Offer made through an agent acceptance communicated to agent Offer becomes ineffective death, civil interdiction, insanity, insolvency before acceptance Option contract, option period, option money G: Business advertisements are invitations to make an offer G: advertisements for bidders are invitations to make proposals No capacity of give consent: minors, insane or demented, deaf-mute and illiterate Contracts: during a lucid interval valid; during hypnotic spell/state of drunkenness voidable Above incapacity is subject to modifications by law (Rules of Court) Consent through mistake, violence, intimidation, undue influence, or fraud voidable Mistake or error should be substantial Burden of prf in case of mistake or fraud person enforcing the contract (in case one of the parties is unable to read, in language not understood by him) No mistake knowledge of risk, doubt, contingency Mutual error (in mistake of law) Violence and intimidation rd Violence or intimidation by a 3 person Undue influence Fraud (Causal fraud) Fraud by concealment Usual exaggerations in trade (dealers/traders talk) Expression of opinion Misrepresentation by 3rd persons Misrepresentation in good faith Causal fraud and incidental fraud Simulation of contract (absolute of relative) rd Absolutely simulated void; relatively simulated (no prejudice to 3 persons, not contrary...) valid Object of a contract Impossible things/service cant be the object Object must be determinate as to its kind Cause: onerous prestation/promise of thing or servicel remuneratory service/benefit remunerated; contracts of pure beneficence liberality of benefactor Motives No cause no effect; unlawful cause

Art. 1353 Art. 1354 Art. 1355 Art. 1356 Art. 1357 Art. 1358 Art. 1359 Art. 1360 Art. 1361 Art. 1362 Art. 1363 Art. 1364 Art. 1365 Art. 1366 Art. 1367 Art. 1368 Art. 1369 Art. 1370 Art. 1371 Art. 1372 Art. 1373 Art. 1374 Art. 1375 Art. 1376 Art. 1377 Art. 1378 Art. 1379 Art. 1380 Art. 1381 Art. 1382 Art. 1383 Art. 1384 Art. 1385 Art. 1386 Art. 1387 Art. 1388 Art. 1389 Art. 1390 Art. 1391 Art. 1392 Art. 1393 Art. 1394 Art. 1395 Art. 1396 Art. 1397 Art. 1398 Art. 1399 Art. 1400 Art. 1401

False cause void (if founded on another cause which is true and lawful) Cause presumed to exists and lawful (unless debtor proves the contrary) Lesion or inadequacy of cause doesnt invalidate contract (unless F,M, UI) Form of contract (G: obligatory in any form) When the law requires for the contract to be in a document/other special form Public document Reformation of instrument Principles of the general law on reformation (note: new civil code will prevail in case of conflict) Mutual mistake as basis of reformation Mistake on one side, fraud/inequitable conduct on the other reformation by good faith party Concealment of mistake by the other party reformation by good faith party Ignorance, lack of skill, negligence, bad faith on person drafting reformation by either party Mortgage or pledge stated as sale reformation No reformation: simple donation inter vivos, wills, real agreement is void No reformation: when one of the parties has brought an action to enforce the instrument Party entitled to reformation: party, successors in interest (mutual mistake); injured party, heirs, assigns Procedure for reformation Rules of Court (7, Rule 130) If words are clear literal meaning; if in the contrary intention of the parties Intention: contemporaneous and subsequent acts Special intent over general intent Interpretation of stipulation with several meanings one which will render it effectual Contract should be interpreted as a whole Words with different significations understood in that which is most in keeping with nature/object Usage and custom as aid in interpretation Interpretation of obscure words or stipulations not to favour party who caused obscurity Rules in case doubts are impossible to settle Principles of interpretation Rule 123 of Rules of Court Rescissible contracts: valid up to the time they are rescinded validly agreed upon Rescissible contracts Payments made in a state of insolvency rescissible Action for rescission is subsidiary Rescission: only to the extent necessary to cover damages rd G: mutual restitution; E: if not possible, legally in the possession of 3 persons in good faith No rescission in Art. 1381 (1,2) in contracts approved by courts Alienation presumed in fraud of creditors: gratuitous titles and onerous title Liability of purchaser in bad faith return, indemnify Action for rescission: 4 years Voidable/annullable contracts: legal incapacity to give consent, vitiation of consent; ratification Action for annulment: 4 years Ratification (extinguishes action to annul) Ratification: express or tacit/implied Ratification by guardian of incapacitated person Conformity of guilty party to ratification is not required Ratification cleanses the contract of all its defects Party entitled to bring action to annul Duty of mutual restitution upon annulment Restitution by incapacitated person: not obliged except in so far as he has been benefited Loss of thing to be returned: fruits + value of the thing at the time of loss + interest from date of loss Extinguishment of action for annulment if object is lost through fraud or fault of plaintiff

Art. 1402 Art. 1403 Art. 1404

Inability to restore no obligation to restore for the other party Unenforceable contracts (ratification)