Finals Provisions Reviewer OBLIGATIONS AND CONTRACTS

YSRefran 1
TITLE II. CONTRACTS
Chapter 1. GENERAL PROVISIONS
1305
DEFINITION of contract
A contract ! a "eet!n# of "!n$ %et&een t&o peron &here%' one %!n$
h!"e(f) &!th repect to the other) to #!*e o"eth!n# or to ren$er o"e er*!ce.
+1,5-a.
130/
Character!t!c of contract0 A1TONO23
LI2ITATIONS0 "4t not %e contrar' to
5 LA6 +"an$ator' 7 proh!%!t!*e (a&.
5 2ORALS +$ea( &!th r!#ht 7 &ron# an$
the h4"an conc!ence.
5 GOOD C1STO2S +tan$ar$ of 84t!ce
7 $ecenc' ac9no&(e$#e$ %' oc!et'.
5 P1:LIC ORDER +p4%(!c &ea() peace)
afet' 7 hea(th of the co""4n!t'.
5 P1:LIC POLIC3 +!$ea of *ar!a%(e
content) $epen$!n# on the ta#e of oc!a(
c4(t4re !n the co""4n!t'.
The contract!n# part!e "a' eta%(!h 4ch t!p4(at!on) c(a4e) ter" an$
con$!t!on a the' "a' $ee" con*en!ent) pro*!$e$ the' are not contrar' to (a&)
"ora() #oo$ c4to") p4%(!c or$er) or p4%(!c po(!c'. +1,55a.
130;
INNO2INATE contract GOVERNED %'0
5 t!p4(at!on
5 pro* of T!t(e I 7 II) :oo9 IV) CC
5r4(e #o*ern!n# the "ot ana(o#o4
no"!nate contract
5 c4to"
Inno"!nate contract ha(( %e re#4(ate$ %' the t!p4(at!on of the part!e) %' the
pro*!!on of T!t(e I an$ II of th! :oo9) %' the r4(e #o*ern!n# the "ot
ana(o#o4 no"!nate contract) an$ %' the c4to" of the p(ace. +n.
130<
Character!t!c of contract0 21T1ALIT3
The contract "4t %!n$ %oth contract!n# part!e= !t *a(!$!t' or co"p(!ance cannot
%e (eft to the &!(( of one of the". +1,5/a.
130>
E?CEPTION to 21T1ALIT30
DETER2INATION :3 3r$ PERSON not
%!n$!n# 4nt!( "a$e 9no&n to %oth part!e
The $eter"!nat!on of the perfor"ance "a' %e (eft to a th!r$ peron) &hoe
$ec!!on ha(( not %e %!n$!n# 4nt!( !t ha %een "a$e 9no&n to %oth contract!n#
part!e. +n.
1310
E?CEPTION to 21T1ALIT30
EVIDENTL3 INE@1ITA:LE DETER2I5
NATION not o%(!#ator'
The $eter"!nat!on ha(( not %e o%(!#ator' !f !t ! e*!$ent(' !neA4!ta%(e. In 4ch
cae) the co4rt ha(( $ec!$e &hat ! eA4!ta%(e 4n$er the c!rc4"tance. +n.
1311
Character!t!c of contract0 RELATIVIT3
E?CEPTIONS
St!p4(at!on po4r a4tr4!
Th!r$ peron co"e !nto poe!on of
o%8ect of contract creat!n# a rea( r!#ht
Contract entere$ !nto to $efra4$ 3
r$
peron
Th!r$ peron !n$4ce contract!n# part' to
*!o(ate h! contract
Contract ta9e effect on(' %et&een the part!e) the!r a!#n an$ he!r) eBcept !n
cae &here the r!#ht an$ o%(!#at!on ar!!n# fro" the contract are not
tran"!!%(e %' the!r nat4re) or %' t!p4(at!on or %' pro*!!on of (a&. The he!r !
not (!a%(e %e'on$ the *a(4e of the propert' he rece!*e$ fro" the $ece$ent.
If a contract ho4($ conta!n o"e t!p4(at!on !n fa*or of a th!r$ peron) he "a'
$e"an$ !t f4(f!(("ent pro*!$e$ he co""4n!cate$ h! acceptance to the o%(!#or
%efore !t re*ocat!on. A "ere !nc!$enta( %enef!t or !nteret of a peron ! not
4ff!c!ent. The contract!n# part!e "4t ha*e c(ear(' an$ $e(!%erate(' conferre$ a
fa*or 4pon a th!r$ peron. +1,5;a.
131,
E?CEPTION to RELATIVIT30 3
r$
PERSON CO2ES INTO POSSESSION
OF O:CECT OF CONTRACT CREATING
A REAL RIGDT
In contract creat!n# rea( r!#ht) th!r$ peron &ho co"e !nto poe!on of the
o%8ect of the contract are %o4n$ there%') 4%8ect to the pro*!!on of the
2ort#a#e La& an$ the Lan$ Re#!trat!on La&. +n.
1313
E?CEPTION to RELATIVIT30 contract
entere$ !nto to DEFRA1D 3
RD
PERSON
Cre$!tor are protecte$ !n cae of contract !nten$e$ to $efra4$ the". +n.
131-
E?CEPTION to RELATIVIT30 3
RD
PERSON IND1CES PART3 to VIOLATE
CONTRACT
An' th!r$ peron &ho !n$4ce another to *!o(ate h! contract ha(( %e (!a%(e for
$a"a#e to the other contract!n# part'. +n.
1315
Character!t!c of contract0
CONSENS1ALIT3
O:LIGATOR3 FORCE OF CONTRACTS
7 PERFOR2ANCE IN GOOD FAITD
Contract are perfecte$ %' "ere conent) an$ fro" that "o"ent the part!e are
%o4n$ not on(' to the f4(f!(("ent of &hat ha %een eBpre(' t!p4(ate$ %4t a(o to
a(( the coneA4ence &h!ch) accor$!n# to the!r nat4re) "a' %e !n 9eep!n# &!th
#oo$ fa!th) 4a#e an$ (a&. +1,5<.
131/
-
TD
e(e"ent to perfect REAL contract0
Rea( contract) 4ch a $epo!t) p(e$#e an$ co""o$at4") are not perfecte$
4nt!( the $e(!*er' of the o%8ect of the o%(!#at!on. +n.
Finals Provisions Reviewer OBLIGATIONS AND CONTRACTS
YSRefran 2
DELIVER3
131;
RE@1ISITE for peron to CONTRACT IN
NA2E OF ANOTDER
5 D1L3 A1TDORIEED) or
5 DAS RIGDT TO REPRESENT
:3 LA6
5 Contract 4%eA4ent(' RATIFIED
No one "a' contract !n the na"e of another &!tho4t %e!n# a4thor!Fe$ %' the
(atter) or 4n(e he ha %' (a& a r!#ht to repreent h!".
A contract entere$ !nto !n the na"e of another %' one &ho ha no a4thor!t' or
(e#a( repreentat!on) or &ho ha acte$ %e'on$ h! po&er) ha(( %e
4nenforcea%(e) 4n(e !t ! rat!f!e$) eBpre(' or !"p(!e$(') %' the peron on
&hoe %eha(f !t ha %een eBec4te$) %efore !t ! re*o9e$ %' the other contract!n#
part'. +1,5>a.
Chapter ,. ESSENTIAL RE@1ISITES OF CONTRACTS
Genera( Pro*!!on
131<
ESSENTIAL RE@1ISITES +3.
-
TD
reA4!!te0
REAL contract G DELIVER3
SOLE2N contract G FOR2
Art. 131<. There ! no contract 4n(e the fo((o&!n# reA4!!te conc4r0
+1. Conent of the contract!n# part!e=
+,. O%8ect certa!n &h!ch ! the 4%8ect "atter of the contract=
+3. Ca4e of the o%(!#at!on &h!ch ! eta%(!he$. +1,/1.
Sect!on 1. CONSENT
131>
CONSENT0 "eet!n# of the "!n$ %et the
part!e on the 4%8ect "atter 7 the
ca4e of the contract) e*en !f ne!ther
ha %een $e(!*ere$
ELE2ENTS +,.0
5 OFFER +certa!n.
5 ACCEPTANCE +a%o(4te 7 4nA4a(!f!e$=
co""4n!cate$ to offeror 7 (earne$ %'
h!".
RE@1ISITES +5.
5 PL1RALIT3 of part!e
5 CAPACIT3 or CAPA:ILIT3 of
part!e
5 NO VITIATION OF CONSENT
5 INTENT PROPERL3 DECLARED +!n
$4e t!"e 7 !n proper for".
5 NO CONFLICT %et !ntent 7
$ec(arat!on
Conent ! "an!fete$ %' the "eet!n# of the offer an$ the acceptance 4pon the
th!n# an$ the ca4e &h!ch are to cont!t4te the contract. The offer "4t %e
certa!n an$ the acceptance a%o(4te. A A4a(!f!e$ acceptance cont!t4te a
co4nter5offer.
Acceptance "a$e %' (etter or te(e#ra" $oe not %!n$ the offerer eBcept fro" the
t!"e !t ca"e to h! 9no&(e$#e. The contract) !n 4ch a cae) ! pre4"e$ to ha*e
%een entere$ !nto !n the p(ace &here the offer &a "a$e. +1,/,a.
13,0
FOR2S of ACCEPTANCE
An acceptance "a' %e eBpre or !"p(!e$. +n.
13,1
TER2S of the OFFER0 offeror "a' f!B
T2P
The peron "a9!n# the offer "a' f!B the t!"e) p(ace) an$ "anner of acceptance)
a(( of &h!ch "4t %e co"p(!e$ &!th. +n.
13,, An offer "a$e thro4#h an a#ent ! accepte$ fro" the t!"e acceptance !
co""4n!cate$ to h!". +n.
13,3
TER2INATION of OFFER
5 RECECTION %' OFFEREE
5 INCAPACIT3 %' EITDER
PART3 :EFORE ACCEPTANCE !
CONVE3ED
5 DEATD
5 CIVIL INTERDICTION
5 INSANIT3
5 INSOLVENC3
An offer %eco"e !neffect!*e 4pon the $eath) c!*!( !nter$!ct!on) !nan!t') or
!no(*enc' of e!ther part' %efore acceptance ! con*e'e$. +n.
13,-
GENERAL R1LE on OPTIONS0 offer "a'
%e &!th$ra&n an' t!"e %efore acceptance
%' co""4n!cat!n# 4ch
E?CEPTION0 opt!on ! fo4n$e$ 4pon a
con!$erat!on a o"eth!n# pa!$ or
6hen the offerer ha a((o&e$ the offeree a certa!n per!o$ to accept) the offer
"a' %e &!th$ra&n at an' t!"e %efore acceptance %' co""4n!cat!n# 4ch
&!th$ra&a() eBcept &hen the opt!on ! fo4n$e$ 4pon a con!$erat!on) a
o"eth!n# pa!$ or pro"!e$. +n.
Finals Provisions Reviewer OBLIGATIONS AND CONTRACTS
YSRefran 3
pro"!e$
13,5
GEN R1LE0 ADVERTISE2ENTS are
2ERE INVITATIONS to "a9e an offer
1n(e !t appear other&!e) %4!ne a$*ert!e"ent of th!n# for a(e are not
$ef!n!te offer) %4t "ere !n*!tat!on to "a9e an offer. +n.
13,/
GEN R1LE0 ADVERTISER NOT :O1ND
TO ACCEPT h!#het or (o&et %!$$er
A$*ert!e"ent for %!$$er are !"p(' !n*!tat!on to "a9e propoa() an$ the
a$*ert!er ! not %o4n$ to accept the h!#het or (o&et %!$$er) 4n(e the
contrar' appear. +n.
13,;
PERSONS INCAPACITATED TO
CONSENT +E?ERCISE OF RIGDT !
RESTRICTED= VOIDA:LE tranact!on.
5 1ne"anc!pate$ 2INORS
5 INSANE or DE2ENTED peron
+4n(e act!n# $4r!n# (4c!$ !nter*a(.)
DR1NHS) an$ thoe D3PNOTIEED
5 DEAF521TES 6DO DONIT 9no& ho&
to 6RITE +AND READ.
The fo((o&!n# cannot #!*e conent to a contract0
+1. 1ne"anc!pate$ "!nor=
+,. Inane or $e"ente$ peron) an$ $eaf5"4te &ho $o not 9no& ho& to &r!te.
+1,/3a.
13,<
DR1NHENNESS eA4!*a(ent to
TE2PORAR3 INSANIT3
D3PNOTIC SPELL +DR1GS or
D3PNOTIS2. or SO2NA2:1LIS2
Contract entere$ !nto $4r!n# a (4c!$ !nter*a( are *a(!$. Contract a#ree$ to !n a
tate of $r4n9enne or $4r!n# a h'pnot!c pe(( are *o!$a%(e. +n.
13,>
SPECIALL3 DIS@1ALIFIED PERSONS
+RIGDT ! 6ITDDELD= VOID tranact!on.
5 Peron 4n$er CIVIL INTERDICTION
5 D1S:AND 7 6IFE) to each other
5 INSOLVENTS
5 D!A4a(!f!e$ peron %eca4e of
FID1CIAR3 RELATIONSDIP
5 Contract entere$ !nto &J NON5
CDRISTIANS
The !ncapac!t' $ec(are$ !n Art!c(e 13,; ! 4%8ect to the "o$!f!cat!on $eter"!ne$
%' (a&) an$ ! 4n$ertoo$ to %e &!tho4t pre84$!ce to pec!a( $!A4a(!f!cat!on
eta%(!he$ !n the (a&. +1,/-.
1330
VICES OF CONSENT ren$er contract
VOIDA:LE
5 pro*en &!th CLEAR AND CONVINCING
EVIDENCE
A contract &here conent ! #!*en thro4#h "!ta9e) *!o(ence) !nt!"!$at!on) 4n$4e
!nf(4ence) or fra4$ ! *o!$a%(e. +1,/5a.
1331
2ISTAHE0 fa(e %e(!ef a%o4t o"eth!n#=
!na$*ertent 7 eBc4a%(e $!re#ar$ of a
c!rc4"tance "ater!a( to the contract
RE@1ISITES
5 INADVERTENT
5 E?C1SA:LE
5 OF FACT) not (a&
5 PAST OR PRESENT
5 2ATERIAL0 "4t refer to factor
!n$4c!n# conent
5 S1:STANCE of the O:CECT or
NAT1RE of tranact!on +error !n
S1:STANTIA.
5 PRINCIPAL @1ALITIES of the
O:CECT +error !n @1ALITATE.
5 @1ANTIT3 +error !n
@1ANTITATE.
5 IDENTIT3 of PART3) con!$er!n#
!n$!*!$4a( 9!(() conf!$ence) etc.
+error !n PERSONA.
In or$er that "!ta9e "a' !n*a(!$ate conent) !t ho4($ refer to the 4%tance of
the th!n# &h!ch ! the o%8ect of the contract) or to thoe con$!t!on &h!ch ha*e
pr!nc!pa((' "o*e$ one or %oth part!e to enter !nto the contract.
2!ta9e a to the !$ent!t' or A4a(!f!cat!on of one of the part!e &!(( *!t!ate conent
on(' &hen 4ch !$ent!t' or A4a(!f!cat!on ha*e %een the pr!nc!pa( ca4e of the
contract.
A !"p(e "!ta9e of acco4nt ha(( #!*e r!e to !t correct!on. +1,//a.
133,
R1LE !n cae of INA:ILIT3 TO READ or
1NDERSTAND
PRES12PTION that ONE ACTS 6J D1E
6hen one of the part!e ! 4na%(e to rea$) or !f the contract ! !n a (an#4a#e not
4n$ertoo$ %' h!") an$ "!ta9e or fra4$ ! a((e#e$) the peron enforc!n# the
contract "4t ho& that the ter" thereof ha*e %een f4((' eBp(a!ne$ to the
for"er. +n.
Finals Provisions Reviewer OBLIGATIONS AND CONTRACTS
YSRefran
CARE 7 SIGNS 6J F1LL HNO6LEDGE
of a DOCIS CONTENTS
1333
HNO6LEDGE OF DO1:T or RISH
DOESNIT VITIATE CONSENT
There ! no "!ta9e !f the part' a((e#!n# !t 9ne& the $o4%t) cont!n#enc' or r!9
affect!n# the o%8ect of the contract. +n.
133-
RE@1ISITES for 21T1AL ERROR to
VITIATE CONSENT
5 21T1AL ERROR
5 ERROR referr!n# to LEGAL EFFECT
of AGREE2ENT
5 REAL P1RPOSE OF PARTIES !
FR1STRATED
24t4a( error a to the (e#a( effect of an a#ree"ent &hen the rea( p4rpoe of the
part!e ! fr4trate$) "a' *!t!ate conent. +n.
1335
D1RESS
5 VIOLENCE0 ph'!ca( coerc!on
1. E"p(o'"ent of SERIO1S OR
IRRESISTI:LE FORCE
,. S1CD FORCE the REASON &h'
CONTRACT &a ENTERED !nto
5 INTI2IDATION0 "ora( coerc!on
1. REASONA:LE 7 6ELL5GRO1NDED
FEAR
,. of an I22INENT 7 GRAVE EVIL
3. 1PON PERSON OR PROPERT3 OF
DIS +or h! SPO1SE) DESCENDANTS)
or ASCENDANTS.
-. S1CD &a the REASON the
CONTRACT &a ENTERED !nto
5. threat "4t %e of an 1NC1ST ACT) an
ACTIONA:LE 6RONG
REVERENTIAL FEAR +fear of $!p(ea!n#
peron to &ho" o%e$!ence 7 repect are
$4e. $oenIt *!t!ate conent
There ! *!o(ence &hen !n or$er to &ret conent) er!o4 or !rre!t!%(e force !
e"p(o'e$.
There ! !nt!"!$at!on &hen one of the contract!n# part!e ! co"pe((e$ %' a
reaona%(e an$ &e((5#ro4n$e$ fear of an !""!nent an$ #ra*e e*!( 4pon h!
peron or propert') or 4pon the peron or propert' of h! po4e) $ecen$ant or
acen$ant) to #!*e h! conent.
To $eter"!ne the $e#ree of !nt!"!$at!on) the a#e) eB an$ con$!t!on of the peron
ha(( %e %orne !n "!n$.
A threat to enforce oneK c(a!" thro4#h co"petent a4thor!t') !f the c(a!" ! 84t or
(e#a() $oe not *!t!ate conent. +1,/;a.
133/
D1RESS CA1SED :3 TDIRD PERSON
ANN1LS CONTRACT
V!o(ence or !nt!"!$at!on ha(( ann4( the o%(!#at!on) a(tho4#h !t "a' ha*e %een
e"p(o'e$ %' a th!r$ peron &ho $!$ not ta9e part !n the contract. +1,/<.
133;
1ND1E INFL1ENCE G RE@1ISITES
5 I2PROPER ADVANTAGE
5 PO6ER OVER 6ILL OF ANOTDER
5 DEPRIVING PERSON of REASONA:LE
FREEDO2 OF CDOICE
There ! 4n$4e !nf(4ence &hen a peron ta9e !"proper a$*anta#e of h! po&er
o*er the &!(( of another) $epr!*!n# the (atter of a reaona%(e free$o" of cho!ce.
The fo((o&!n# c!rc4"tance ha(( %e con!$ere$0 the conf!$ent!a() fa"!(')
p!r!t4a( an$ other re(at!on %et&een the part!e) or the fact that the peron
a((e#e$ to ha*e %een 4n$4(' !nf(4ence$ &a 4ffer!n# fro" "enta( &ea9ne) or
&a !#norant or !n f!nanc!a( $!tre. +n.
133<
DEFINITION of FRA1D
HINDS
1. Fra4$ !n the CELE:RATION of the
contract +FRA1D PROPER.
5 DOLO CA1SANTE +ca4a( fra4$.
ReA4!!te0
1. 2ATERIAL 7 SERIO1S FRA1D
,. 1SED :3 on(' ONE PART3
3. DELI:ERATE INTENT TO
DECEIVE or IND1CE
-. OTDER PART3 RELIED ON
1NTR1E ST2T 7 ISNIT G1ILT3
OF NEGLIGENCE IN
ASCERTAINING TDE TR1TD
5 DOLO INCIDENTE +!nc!$enta( fra4$.
,. Fra4$ !n the PERFOR2ANCE of the
o%(!#at!on t!p4(ate$
There ! fra4$ &hen) thro4#h !n!$!o4 &or$ or "ach!nat!on of one of the
contract!n# part!e) the other ! !n$4ce$ to enter !nto a contract &h!ch) &!tho4t
the") he &o4($ not ha*e a#ree$ to. +1,/>.
133>
CONCEAL2ENT cont!t4te fra4$ &hen
Fa!(4re to $!c(oe fact) &hen there ! a $4t' to re*ea( the") a &hen the part!e
are %o4n$ %' conf!$ent!a( re(at!on) cont!t4te fra4$. +n.
Finals Provisions Reviewer OBLIGATIONS AND CONTRACTS
YSRefran !
thereI a D1T3 TO REVEAL TDE2
13-0
CAVEAT E2PTOR0 (et the %4'er %e&are
The 44a( eBa##erat!on !n tra$e) &hen the other part' ha$ an opport4n!t' to
9no& the fact) are not !n the"e(*e fra4$4(ent. +n.
13-1
2ERE E?PRESSION OF OPINION
DOESNIT SIGNIF3 FRA1D
A "ere eBpre!on of an op!n!on $oe not !#n!f' fra4$) 4n(e "a$e %' an
eBpert an$ the other part' ha re(!e$ on the for"erK pec!a( 9no&(e$#e. +n.
13-,
2ISREPRESENTATION :3 3
RD
PERSON
DOESNIT VITIATE CONSENT
2!repreentat!on %' a th!r$ peron $oe not *!t!ate conent) 4n(e 4ch
"!repreentat!on ha create$ 4%tant!a( "!ta9e an$ the a"e ! "4t4a(. +n.
13-3
2ISREPRESENTATION IN GOOD FAITD
2!repreentat!on "a$e !n #oo$ fa!th ! not fra4$4(ent %4t "a' cont!t4te error.
+n.
13--
RE@1ISITES for FRA1D to VITIATE
CONSENT
1. Fra4$ "4t %e SERIO1S
,. Part!e 21ST NOT :E IN PARI
DELICTO +"4t4a( #4!(t.
In or$er that fra4$ "a' "a9e a contract *o!$a%(e) !t ho4($ %e er!o4 an$
ho4($ not ha*e %een e"p(o'e$ %' %oth contract!n# part!e.
Inc!$enta( fra4$ on(' o%(!#e the peron e"p(o'!n# !t to pa' $a"a#e. +1,;0.
13-5
RE@1ISITES of !"4(ate$ contract
1. O1T6ARD DECLARATION of 6ILL
DIFFERENT FRO2 TDE 6ILL OF TDE
PARTIES
,. FALSE APPEARANCE "4tI*e %een
INTENDED :3 21T1AL AGREE2ENT
3. P1RPOSE ! TO DECEIVE 3
RD
PERSONS
S!"4(at!on of a contract "a' %e a%o(4te or re(at!*e. The for"er ta9e p(ace
&hen the part!e $o not !nten$ to %e %o4n$ at a((= the (atter) &hen the part!e
concea( the!r tr4e a#ree"ent. +n.
13-/
HINDS of SI21LATED CONTRACTS
1. A:SOL1TEL3 SI21LATED0 part!e
$onIt !nten$ to %e %o4n$
,. RELATIVEL3 SI21LATED0 part!e
concea( the!r tr4e a#ree"ent
An a%o(4te(' !"4(ate$ or f!ct!t!o4 contract ! *o!$. A re(at!*e !"4(at!on) &hen !t
$oe not pre84$!ce a th!r$ peron an$ ! not !nten$e$ for an' p4rpoe contrar' to
(a&) "ora() #oo$ c4to") p4%(!c or$er) or p4%(!c po(!c' %!n$ the part!e to the!r
rea( a#ree"ent.
Sect!on ,. O:CECT OF CONTRACTS
13-;
O:CECT OF A CONTRACT0 to create or
to en$ o%(!#at!on &Jc "a' !n*o(*e th!n#
or er*!ce
RE@1ISITES
5 6JIN the CO22ERCE OF 2AN
5 TRANS2ISSI:LE
5 LA6F1L
5 ACT1AL or POSSI:LE
5 DETER2INATE or DETER2INA:LE
6JO NEED OF A NE6 CONTRACT
A(( th!n# &h!ch are not o4t!$e the co""erce of "en) !nc(4$!n# f4t4re th!n#)
"a' %e the o%8ect of a contract. A(( r!#ht &h!ch are not !ntran"!!%(e "a' a(o
%e the o%8ect of contract.
No contract "a' %e entere$ !nto 4pon f4t4re !nher!tance eBcept !n cae
eBpre(' a4thor!Fe$ %' (a&.
A(( er*!ce &h!ch are not contrar' to (a&) "ora() #oo$ c4to") p4%(!c or$er or
p4%(!c po(!c' "a' (!9e&!e %e the o%8ect of a contract. +1,;1a.
13-<
I2POSSI:ILIT3 "a' %e
5 :eca4e of the TRANSACTION or the
LA6
5 A:SOL1TE +o%8ect!*e(' !"po!%(e.
5 RELATIVE +4%8ect!*e(' !"po!%(e.
I"po!%!(!t' "4t not %e conf4e$ &J
DIFFIC1LT3
I"po!%(e th!n# or er*!ce cannot %e the o%8ect of contract. +1,;,.
13->
A reA4!!te of O:CECT
The o%8ect of e*er' contract "4t %e $eter"!nate a to !t 9!n$. The fact that the
A4ant!t' ! not $eter"!nate ha(( not %e an o%tac(e to the eB!tence of the
contract) pro*!$e$ !t ! po!%(e to $eter"!ne the a"e) &!tho4t the nee$ of a
ne& contract %et&een the part!e. +1,;3.
Sect!on 3. CA1SE OF CONTRACTS
1350
CA1SE0 !"pe((!n# reaon for &h!ch a
part' a4"e an o%(!#at!on 4n$er a
contract
In onero4 contract the ca4e ! 4n$ertoo$ to %e) for each contract!n# part')
the pretat!on or pro"!e of a th!n# or er*!ce %' the other= !n re"4nerator'
one) the er*!ce or %enef!t &h!ch ! re"4nerate$= an$ !n contract of p4re
%enef!cence) the "ere (!%era(!t' of the %enefactor. +1,;-.
Finals Provisions Reviewer OBLIGATIONS AND CONTRACTS
YSRefran "
1351
2OTIVE V. CA1SE
5 "a' *ar'= a(&a' the a"e
5 "a' %e 4n9no&n to the other= a(&a'
9no&n
5 preence of "ot!*e canIt c4re a%ence
of ca4e
The part!c4(ar "ot!*e of the part!e !n enter!n# !nto a contract are $!fferent fro"
the ca4e thereof. +n.
135,
RE@1ISITES for CA1SE
5 PRESENT +eB!tent at t!"e contract &a
entere$ !nto.
5 TR1E
5 LA6F1L
NO CA1SE L VOID CONTRACT
Contract &!tho4t ca4e) or &!th 4n(a&f4( ca4e) pro$4ce no effect &hate*er.
The ca4e ! 4n(a&f4( !f !t ! contrar' to (a&) "ora() #oo$ c4to") p4%(!c or$er
or p4%(!c po(!c'. +1,;5a.
1353
CONTRACT 6J STATE2ENT OF FALSE
CA1SE not necear!(' VOID) "a' %e
VOIDA:LE
The tate"ent of a fa(e ca4e !n contract ha(( ren$er the" *o!$) !f !t ho4($
not %e pro*e$ that the' &ere fo4n$e$ 4pon another ca4e &h!ch ! tr4e an$
(a&f4(. +1,;/.
135-
PRES12PTION G CA1SE E?ISTS
A(tho4#h the ca4e ! not tate$ !n the contract) !t ! pre4"e$ that !t eB!t an$
! (a&f4() 4n(e the $e%tor pro*e the contrar'. +1,;;.
1355
LESION0 !na$eA4ac' of ca4e
GEN R1LE0 LESION DOESNIT
INVALIDATE a CONTRACT
E?CEPTIONS
1. Le!on M FRA1DJ2ISTAHEJ1ND1E
INFL1ENCE
,. CASES eBpre(' PROVIDED :3 LA6
EBcept !n cae pec!f!e$ %' (a&) (e!on or !na$eA4ac' of ca4e ha(( not
!n*a(!$ate a contract) 4n(e there ha %een fra4$) "!ta9e or 4n$4e !nf(4ence.
+n.
Chapter 3. FOR2 OF CONTRACTS
135/
GEN R1LE G FOR2 NOT RE@ID +app(!e
to CONSENS1AL CONTRACTS.
5 SOLE2N contract reA4!re CERTAIN
SPECIFIED FOR2
5 REAL contract reA4!re DELIVER3
FOR2 "a' %e !"portant for
5 VALIDIT3
5 ENFORCEA:ILIT3
5 CONVENIENCE
Contract ha(( %e o%(!#ator') !n &hate*er for" the' "a' ha*e %een entere$ !nto)
pro*!$e$ a(( the eent!a( reA4!!te for the!r *a(!$!t' are preent. Do&e*er) &hen
the (a& reA4!re that a contract %e !n o"e for" !n or$er that !t "a' %e *a(!$ or
enforcea%(e) or that a contract %e pro*e$ !n a certa!n &a') that reA4!re"ent !
a%o(4te an$ !n$!pena%(e. In 4ch cae) the r!#ht of the part!e tate$ !n the
fo((o&!n# art!c(e cannot %e eBerc!e$. +1,;<a.
135;
:efore PARTIES "a' %e CO2PELLED to
E?EC1TE NEEDED FOR2) ESSENTIAL
that contract !0
5 PERFECTED +*a(!$.
5 ENFORCEA:LE 1NDER the STAT1TE
OF FRA1DS
If the (a& reA4!re a $oc4"ent or other pec!a( for") a !n the act an$ contract
en4"erate$ !n the fo((o&!n# art!c(e) the contract!n# part!e "a' co"pe( each
other to o%er*e that for") once the contract ha %een perfecte$. Th! r!#ht "a'
%e eBerc!e$ !"4(taneo4(' &!th the act!on 4pon the contract. +1,;>a.
135<
NECESSIT3 for P1:LIC DOC IN
CONTRACTS EN12ERATED G for
CONVENIENCE
PRES12PTION G P1:LIC
INSTR12ENT ! VALID
The fo((o&!n# "4t appear !n a p4%(!c $oc4"ent0
+1. Act an$ contract &h!ch ha*e for the!r o%8ect the creat!on) tran"!!on)
"o$!f!cat!on or eBt!n#4!h"ent of rea( r!#ht o*er !""o*a%(e propert'= a(e of
rea( propert' or of an !nteret there!n a #o*erne$ %' Art!c(e 1-03) No. ,) an$
1-05=
+,. The ce!on) rep4$!at!on or ren4nc!at!on of here$!tar' r!#ht or of thoe of the
con84#a( partnerh!p of #a!n=
+3. The po&er to a$"!n!ter propert') or an' other po&er &h!ch ha for !t o%8ect
an act appear!n# or &h!ch ho4($ appear !n a p4%(!c $oc4"ent) or ho4($
pre84$!ce a th!r$ peron=
Finals Provisions Reviewer OBLIGATIONS AND CONTRACTS
YSRefran #
+-. The ce!on of act!on or r!#ht procee$!n# fro" an act appear!n# !n a p4%(!c
$oc4"ent.
A(( other contract &here the a"o4nt !n*o(*e$ eBcee$ f!*e h4n$re$ peo "4t
appear !n &r!t!n#) e*en a pr!*ate one. :4t a(e of #oo$) chatte( or th!n# !n
act!on are #o*erne$ %' Art!c(e) 1-03) No. , an$ 1-05. +1,<0a.
Chapter -. REFOR2ATION OF INSTR12ENTS +n.
135>
REFOR2ATION0 re"e$' !n eA4!t' %'
"ean of &h!ch a &r!tten !ntr4"ent !
"a$e or contr4e$ to eBpre or confor"
to the rea( !ntent!on of the part!e &hen
o"e error or "!ta9e ha %een
co""!tte$
NO NE6 CONTRACT IS 2ADE
RE@1ISITES for refor"at!on
1. 2EETING OF TDE 2INDS
,. TR1E INTENTION NOT E?PRESSED
IN TDE INSTR12ENT
3. CLEAR 7 CONVINCING PROOF
-. :RO1GDT 6JIN PROPER
PRESCRIPTIVE PERIOD
5. DOC 21SNIT REFER TO
5 SI2PLE 1NCONDITIONAL DONATION
INTER VIVOS
5 6ILLS
5 CONTRACT 6DERE REAL
AGREE2ENT IS VOID
6hen) there ha*!n# %een a "eet!n# of the "!n$ of the part!e to a contract)
the!r tr4e !ntent!on ! not eBpree$ !n the !ntr4"ent p4rport!n# to e"%o$' the
a#ree"ent) %' reaon of "!ta9e) fra4$) !neA4!ta%(e con$4ct or acc!$ent) one of
the part!e "a' a9 for the refor"at!on of the !ntr4"ent to the en$ that 4ch
tr4e !ntent!on "a' %e eBpree$.

If "!ta9e) fra4$) !neA4!ta%(e con$4ct) or acc!$ent ha pre*ente$ a "eet!n# of the
"!n$ of the part!e) the proper re"e$' ! not refor"at!on of the !ntr4"ent %4t
ann4("ent of the contract.
13/0
CC PREVAILS OVER PRINCIPLES OF
GENERAL LA6 ON REFOR2ATION IN
CASES OF CONFLICT
The pr!nc!p(e of the #enera( (a& on the refor"at!on of !ntr4"ent are here%'
a$opte$ !nofar a the' are not !n conf(!ct &!th the pro*!!on of th! Co$e.
13/1
REFOR2ATION %ec. of 21T1AL
2ISTAHE
5 21T1AL 2ISTAHE
5 2A3 :E 1NILATERAL PER CC 13/, 7
13/3
5 2ISTAHE 44a((' "4t %e OF FACT
6hen a "4t4a( "!ta9e of the part!e ca4e the fa!(4re of the !ntr4"ent to
$!c(oe the!r rea( a#ree"ent) a!$ !ntr4"ent "a' %e refor"e$.
13/, If one part' &a "!ta9en an$ the other acte$ fra4$4(ent(' or !neA4!ta%(' !n 4ch
a &a' that the !ntr4"ent $oe not ho& the!r tr4e !ntent!on) the for"er "a' a9
for the refor"at!on of the !ntr4"ent.
13/3
PART3 IN GOOD FAITD CAN ASH FOR
REFOR2ATION
6hen one part' &a "!ta9en an$ the other 9ne& or %e(!e*e$ that the
!ntr4"ent $!$ not tate the!r rea( a#ree"ent) %4t concea(e$ that fact fro" the
for"er) the !ntr4"ent "a' %e refor"e$.
13/-
FAIL1RE TO CONVE3 TR1E INTENT
%eca4e of IGNORANCEJ LACH OF
SHILLJ :AD FAITD of
5 DRAFTER OF the INSTR12ENT
5 CLERH
5 T3PIST
6hen thro4#h the !#norance) (ac9 of 9!(() ne#(!#ence or %a$ fa!th on the part of
the peron $raft!n# the !ntr4"ent or of the c(er9 or t'p!t) the !ntr4"ent $oe
not eBpre the tr4e !ntent!on of the part!e) the co4rt "a' or$er that the
!ntr4"ent %e refor"e$.
13/5
INTENT TO DAVE 2ORTGAGEJPLEDGE
%4t !ntr4"ent tate other&!e G
refor"at!on ! proper
PARTIESI INTENT 84$#e$ fro"
CONTE2PORANEO1S 7
S1:SE@1ENT ACTS
If t&o part!e a#ree 4pon the "ort#a#e or p(e$#e of rea( or perona( propert')
%4t the !ntr4"ent tate that the propert' ! o($ a%o(4te(' or &!th a r!#ht of
rep4rchae) refor"at!on of the !ntr4"ent ! proper.
13// There ha(( %e no refor"at!on !n the fo((o&!n# cae0
Finals Provisions Reviewer OBLIGATIONS AND CONTRACTS
YSRefran $
INSTANCES 6DEN REFOR2ATION IS
ALLO6ED +1. S!"p(e $onat!on !nter *!*o &here!n no con$!t!on ! !"poe$=
+,. 6!((=
+3. 6hen the rea( a#ree"ent ! *o!$.
13/;
INSTANCE 6DEN REFOR2ATION
CANIT PROSPER G ACTION TO
ENFORCE TDE INSTR12ENT
:a!0 etoppe() &a!*er) or rat!f!cat!on
6hen one of the part!e ha %ro4#ht an act!on to enforce the !ntr4"ent) he
cannot 4%eA4ent(' a9 for !t refor"at!on.
13/<
PLAINTIFFS IN ACTION FOR
REFOR2ATION
5 21T1AL 2ISTAHE0 EITDER PART3 or
h! 4cceor !n !nteret
5 OTDER CASES0 INC1RED PART3) h!
DEIRS 7 ASSIGNS
CO2PLAINT 21ST ALLEGE
5 INSTR12ENT DOESNIT E?PRESS
PARTIESI REAL
AGREE2ENTJINTENTION
5 6DAT REAL AGREE2ENTJINTENTION
6AS
Refor"at!on "a' %e or$ere$ at the !ntance of e!ther part' or h! 4cceor !n
!nteret) !f the "!ta9e &a "4t4a(= other&!e) 4pon pet!t!on of the !n84re$ part')
or h! he!r an$ a!#n.
13/>
PROCED1RAL R1LES 4ppoe$ to %e
pro"4(#ate$ %' SC
The proce$4re for the refor"at!on of !ntr4"ent ha(( %e #o*erne$ %' r4(e of
co4rt to %e pro"4(#ate$ %' the S4pre"e Co4rt.
Chapter 5. INTERPRETATION OF CONTRACTS
13;0
TEST0 PARTIESI INTENTION) DERIVED
FRO2 the TER2S of the contract. IF
CLEAR 7 LEAVE NO DO1:T) LITERAL
2EANING CONTROLS
If the ter" of a contract are c(ear an$ (ea*e no $o4%t 4pon the !ntent!on of the
contract!n# part!e) the (!tera( "ean!n# of !t t!p4(at!on ha(( contro(.
If the &or$ appear to %e contrar' to the e*!$ent !ntent!on of the part!e) the (atter
ha(( pre*a!( o*er the for"er. +1,<1.
13;1
IF PARTIES PLACED INTERPRETATION
TO TER2S) S1CD IN GEN. 21ST :E
FOLLO6ED
CONTE2PORANEO1S 7
S1:SE@1ENT ACTS
In or$er to 84$#e the !ntent!on of the contract!n# part!e) the!r conte"poraneo4
an$ 4%eA4ent act ha(( %e pr!nc!pa((' con!$ere$. +1,<,.
13;,
SPECIAL INTENT PREVAILS OVER
GEN. INTENT
Do&e*er #enera( the ter" of a contract "a' %e) the' ha(( not %e 4n$ertoo$ to
co"prehen$ th!n# that are $!t!nct an$ cae that are $!fferent fro" thoe 4pon
&h!ch the part!e !nten$e$ to a#ree. +1,<3.
13;3
If ONE INTERPRETATION 2AHES A
CONTRACT VALID 7 ILLEGAL) F2R
INTERPRETATION 21ST PREVAIL
If o"e t!p4(at!on of an' contract ho4($ a$"!t of e*era( "ean!n#) !t ha(( %e
4n$ertoo$ a %ear!n# that !"port &h!ch ! "ot a$eA4ate to ren$er !t effect4a(.
+1,<-.
13;-
STIP1LATIONS TO :E READ
TOGETDER
The *ar!o4 t!p4(at!on of a contract ha(( %e !nterprete$ to#ether) attr!%4t!n# to
the $o4%tf4( one that ene &h!ch "a' re4(t fro" a(( of the" ta9en 8o!nt('.
+1,<5.
13;5
6ORDS TO :E INTERPRETED IN
HEEPING 6J NAT1RE 7 O:CECT OF
CONTRACT
6or$ &h!ch "a' ha*e $!fferent !#n!f!cat!on ha(( %e 4n$ertoo$ !n that &h!ch
! "ot !n 9eep!n# &!th the nat4re an$ o%8ect of the contract. +1,</.
13;/
LOCAL C1STO2S 21ST :E ALLEGED
7 PROVED
GEN. C1STO2S NEED NOT :E
PLEADED
The 4a#e or c4to" of the p(ace ha(( %e %orne !n "!n$ !n the !nterpretat!on of
the a"%!#4!t!e of a contract) an$ ha(( f!(( the o"!!on of t!p4(at!on &h!ch are
or$!nar!(' eta%(!he$. +1,<;.
13;;
INTERPRETATION AGAINST PART3
6DO CA1SED O:SC1RIT3
App(!e &J #reater force to CONTRACTS
The !nterpretat!on of o%c4re &or$ or t!p4(at!on !n a contract ha(( not fa*or
the part' &ho ca4e$ the o%c4r!t'. +1,<<.
Finals Provisions Reviewer OBLIGATIONS AND CONTRACTS
YSRefran %
OF ADDESION
13;<
DO1:TS AS TO PRINCIPAL O:CECT
OR INCIDENTAL CIRC12STANCES
6hen !t ! a%o(4te(' !"po!%(e to ett(e $o4%t %' the r4(e eta%(!he$ !n the
prece$!n# art!c(e) an$ the $o4%t refer to !nc!$enta( c!rc4"tance of a
#rat4!to4 contract) the (eat tran"!!on of r!#ht an$ !nteret ha(( pre*a!(. If
the contract ! onero4) the $o4%t ha(( %e ett(e$ !n fa*or of the #reatet
rec!proc!t' of !nteret.
If the $o4%t are cat 4pon the pr!nc!pa( o%8ect of the contract !n 4ch a &a' that
!t cannot %e 9no&n &hat "a' ha*e %een the !ntent!on or &!(( of the part!e) the
contract ha(( %e n4(( an$ *o!$. +1,<>.
13;>
S1PPLETOR3 1SE G R1LE 1,3 of RoC
to refer to R1LE 130 of Ne& R4(e on
E*!$ence
5 6r!tten &or$ contro( pr!nte$ one
5 Lan#4a#e !nterprete$ accor$!n# to (e#a(
"ean!n# !t %ear !n the p(ace of !t
eBec4t!on) 4n(e part!e !nten$e$
other&!e
5 Genera( acceptat!on of ter" pre4"e$
!nten$e$ 4n(e ho&n to ha*e %een
4n$ertoo$ !n a pec4(!arJtechn!ca( ene
The pr!nc!p(e of !nterpretat!on tate$ !n R4(e 1,3 of the R4(e of Co4rt ha((
(!9e&!e %e o%er*e$ !n the contr4ct!on of contract. +n.
Chapter /. RESCISSI:LE CONTRACTS
13<0
RESCISSION0 proce $e!#nate$ to
ren$er !neff!cac!o4 a contract *a(!$('
entere$ !nto 7 nor"a((' %!n$!n#) %eca4e
of eBterna( con$!t!on) ca4!n# an
econo"!c pre84$!ce to a part' or h!
cre$!tor
RE@1ISITES
1. INITIALL3 VALID CONTRACT
,. ECONO2IC OR FINANCIAL
PREC1DICE TO SO2EONE
3. ReA4!re 21T1AL RESTIT1TION
EFFECTS OF RESCISSION
1. RET1RN to ORIGINAL STAT1S @1O
+13<5.
,. IF RET1RN ISNIT POSSI:LE)
TRANSFEREE 21ST PA3 INDE2NIT3
FOR DA2AGES +13<<.
3. If there are e*era( a(!enat!on) FIRST
AC@1IRER IS LIA:LE FIRST +for
$a"a#e. Act4a( poeor of th!n# (!a%(e
fra4$4(ent(' a(!enate$ &!(( %e (!a%(e for !t
ret4rn. +13<<) (at par..
Contract *a(!$(' a#ree$ 4pon "a' %e rec!n$e$ !n the cae eta%(!he$ %' (a&.
+1,>0.
13<1
EN12ERATION of RESCISSI:LE
CONTRACTS
GRO1NDS of RESCISSION
1. LESION PROPER
5 13<1+1.
5 13<1+,.
5 Part!t!on of !nher!tance &hen thereI
(e!on of N or "ore for one he!r +CC 10><.
,. :AD FAITD +fra4$.
5 13<1+3. G ACCION PA1LIANA
5 13<1+-.
5 13<,
3. SPECIAL PROVISION OF LA6
O13<1+5.P
The fo((o&!n# contract are rec!!%(e0
+1. Thoe &h!ch are entere$ !nto %' #4ar$!an &hene*er the &ar$ &ho" the'
repreent 4ffer (e!on %' "ore than one5fo4rth of the *a(4e of the th!n# &h!ch
are the o%8ect thereof=
+,. Thoe a#ree$ 4pon !n repreentat!on of a%entee) !f the (atter 4ffer the
(e!on tate$ !n the prece$!n# n4"%er=
+3. Thoe 4n$erta9en !n fra4$ of cre$!tor &hen the (atter cannot !n an' other
"anner co((ect the c(a!" $4e the"=
+-. Thoe &h!ch refer to th!n# 4n$er (!t!#at!on !f the' ha*e %een entere$ !nto %'
the $efen$ant &!tho4t the 9no&(e$#e an$ appro*a( of the (!t!#ant or of
co"petent 84$!c!a( a4thor!t'=
Finals Provisions Reviewer OBLIGATIONS AND CONTRACTS
YSRefran 1&
+5. A(( other contract pec!a((' $ec(are$ %' (a& to %e 4%8ect to rec!!on.
+1,>1a.
13<,
RE@1ISITES
5 De%tor5pa'er "4tI*e %een !no(*ent
+$oenIt nee$ to %e 84$!c!a((' $ec(are$.
5 De%t not 'et $4e an$ $e"an$a%(e
Pa'"ent "a$e !n a tate of !no(*enc' for o%(!#at!on to &hoe f4(f!(("ent the
$e%tor co4($ not %e co"pe((e$ at the t!"e the' &ere effecte$) are a(o
rec!!%(e. +1,>,.
13<3
RESCISSION NOT A PRINCIPAL
RE2ED3
The act!on for rec!!on ! 4%!$!ar'= !t cannot %e !nt!t4te$ eBcept &hen the
part' 4ffer!n# $a"a#e ha no other (e#a( "ean to o%ta!n reparat!on for the
a"e. +1,>-.
13<-
PARTIAL RESCISSION
Rec!!on ha(( %e on(' to the eBtent necear' to co*er the $a"a#e ca4e$.
+n.
13<5
NECESSIT3 OF 21T1AL RESTIT1TION
RE@1ISITES %efore act!on for rec!!on
can %e %ro4#ht
1. Genera((') PLAINTIFF a%(e to RET1RN
&hat ha %een rece!*e$
,. TDING o%8ect of contract NOT IN
LEGAL POSSESSION of 3
RD
PERSONS
IN GOOD FAITD
3. NO OTDER LEGAL RE2ED3
-. Act!on :RO1GDT 6JIN PROPER
PRESCRIPTIVE PERIOD
Rec!!on create the o%(!#at!on to ret4rn the th!n# &h!ch &ere the o%8ect of
the contract) to#ether &!th the!r fr4!t) an$ the pr!ce &!th !t !nteret=
coneA4ent(') !t can %e carr!e$ o4t on(' &hen he &ho $e"an$ rec!!on can
ret4rn &hate*er he "a' %e o%(!#e$ to retore.
Ne!ther ha(( rec!!on ta9e p(ace &hen the th!n# &h!ch are the o%8ect of the
contract are (e#a((' !n the poe!on of th!r$ peron &ho $!$ not act !n %a$
fa!th.
In th! cae) !n$e"n!t' for $a"a#e "a' %e $e"an$e$ fro" the peron ca4!n#
the (o. +1,>5.
13</ Rec!!on referre$ to !n No. 1 an$ , of Art!c(e 13<1 ha(( not ta9e p(ace &!th
repect to contract appro*e$ %' the co4rt. +1,>/a.
13<;
PRES12PTION OF FRA1D !n
5 GRAT1ITO1S a(!enat!on) &hen
DE:TOR DIDNIT RESERVE
S1FFICIENT PROP. TO PA3 DE:T
CONTRACTED :EFORE TDE
DONATION
5 ONERO1S a(!enat!on) &hen 2ADE :3
PERSONS
a. A#a!nt &ho" o"e C1DG2ENT
ha %een ren$ere$
%. A#a!nt &ho" o"e 6RIT OF
ATTACD2ENT ha %een !4e$
:ADGES OF FRA1D0 c!rc4"tance
!n$!cat!n# certa!n a(!enat!on ha %een
"a$e !n fra4$ of cre$!tor
1. F!ct!t!o4 or INADE@1ATE
CONSIDERATION
,. Tranfer AFTER S1IT IS FILED 7
6DILE ITIS PENDING
3. SALE ON CREDIT %' INSOLVENT
DE:TOR
-. Proof of LARGE INDE:TEDNESS OR
CO2PLETE INSOLVENC3
5. Tranfer OF +NEARL3. ALL PROP.
/. RELATIONSDIP M OTDER
CIRC12STANCES
;. FAIL1RE OF VENDEE +!n a%o(4te
a(e. to ta9e eBc(4!*e poe!on of prop
<. GROSS DISPARIT3 %et. pr!ce 7 rea(
*a(4e
A(( contract %' *!rt4e of &h!ch the $e%tor a(!enate propert' %' #rat4!to4 t!t(e
are pre4"e$ to ha*e %een entere$ !nto !n fra4$ of cre$!tor) &hen the $onor $!$
not reer*e 4ff!c!ent propert' to pa' a(( $e%t contracte$ %efore the $onat!on.
A(!enat!on %' onero4 t!t(e are a(o pre4"e$ fra4$4(ent &hen "a$e %'
peron a#a!nt &ho" o"e 84$#"ent ha %een !4e$. The $ec!!on or
attach"ent nee$ not refer to the propert' a(!enate$) an$ nee$ not ha*e %een
o%ta!ne$ %' the part' ee9!n# the rec!!on.
In a$$!t!on to thee pre4"pt!on) the $e!#n to $efra4$ cre$!tor "a' %e pro*e$
!n an' other "anner reco#n!Fe$ %' the (a& of e*!$ence. +1,>;a.
13<<
EFFECT OF :AD FAITD G AC@1IRER
21ST RET1RN OR INDE2NIF3
S1:SE@1ENT TRANSFERS
5 F!rt tranferee IN GOOD FAITD G neBt
6hoe*er acA4!re !n %a$ fa!th the th!n# a(!enate$ !n fra4$ of cre$!tor) ha((
!n$e"n!f' the (atter for $a"a#e 4ffere$ %' the" on acco4nt of the a(!enat!on)
&hene*er) $4e to an' ca4e) !t ho4($ %e !"po!%(e for h!" to ret4rn the".
If there are t&o or "ore a(!enat!on) the f!rt acA4!rer ha(( %e (!a%(e f!rt) an$ o
on 4cce!*e('. +1,><a.
Finals Provisions Reviewer OBLIGATIONS AND CONTRACTS
YSRefran 11
tranfereeI #oo$ or %a$ fa!th not
!"portant
5 F!rt tranferee IN :AD FAITD G neBt
tranferee (!a%(e !f heI a(o !n %a$ fa!th
13<>
GEN R1LE on precr!pt!*e per!o$0 - 3RS
fro" $ate contract &a entere$ !nto
E?CEPTIONS
Secon$ par.) 13<>
The act!on to c(a!" rec!!on "4t %e co""ence$ &!th!n fo4r 'ear.
For peron 4n$er #4ar$!anh!p an$ for a%entee) the per!o$ of fo4r 'ear ha((
not %e#!n 4nt!( the ter"!nat!on of the for"erK !ncapac!t') or 4nt!( the $o"!c!(e of
the (atter ! 9no&n. +1,>>.
Chapter ;. VOIDA:LE CONTRACTS
13>0
VOIDA:LE CONTRACTS0 *a(!$ 4nt!(
ann4((e$
GRO1NDS
1. INCAPACIT3 OF ONE PART3 TO
GIVE CONSENT
,. VITIATION OF CONSENT
The fo((o&!n# contract are *o!$a%(e or ann4((a%(e) e*en tho4#h there "a' ha*e
%een no $a"a#e to the contract!n# part!e0
+1. Thoe &here one of the part!e ! !ncapa%(e of #!*!n# conent to a contract=
+,. Thoe &here the conent ! *!t!ate$ %' "!ta9e) *!o(ence) !nt!"!$at!on) 4n$4e
!nf(4ence or fra4$.
Thee contract are %!n$!n#) 4n(e the' are ann4((e$ %' a proper act!on !n
co4rt. The' are 4cept!%(e of rat!f!cat!on. +n.
13>1
D1RATION OF ACTION TO ANN1L
1. D1RESS +*!o(ence) !nt!"!$at!on) or
4n$4e !nf(4ence. G - 3RS FRO2
CESSATION TDEREOF
,. FRA1D OR FALSE CA1SE G - 3RS
FRO2 DISCOVER3
3. 2INORS) ETC. G 1P TO - 3RS FRO2
2ACORIT3 OR RE2OVAL OF
DISA:ILIT3
The act!on for ann4("ent ha(( %e %ro4#ht &!th!n fo4r 'ear.
Th! per!o$ ha(( %e#!n0
In cae of !nt!"!$at!on) *!o(ence or 4n$4e !nf(4ence) fro" the t!"e the $efect of
the conent ceae.
In cae of "!ta9e or fra4$) fro" the t!"e of the $!co*er' of the a"e.
An$ &hen the act!on refer to contract entere$ !nto %' "!nor or other
!ncapac!tate$ peron) fro" the t!"e the #4ar$!anh!p ceae. +1301a.
13>,
RE@1ISITES OF RATIFICATION
1. VOIDA:LE CONTRACT
,. PERSON RATIF3ING 21ST HNO6
REASON FOR CONTRACT :EING
VOIDA:LE +ca4e "4t %e 9no&n.
3. CA1SE 21SNIT E?IST OR
CONTIN1E TO E?IST AN32ORE AT
TI2E OF RATIFICATION
-. RATIFICATION 2ADE E?PRESSL3
OR :3 ACT I2PL3ING 6AIVER OF
ACTION TO ANN1L
5. PERSON RATIF3ING 21ST :E
INC1RED PART3
EFFECTS OF RATIFICATION
5 ACTION to ann4( ! E?TING1ISDED
5 CONTRACT CLEANSED OF DEFECT
FRO2 :EGINNING
Rat!f!cat!on eBt!n#4!he the act!on to ann4( a *o!$a%(e contract. +130>a.
13>3
HINDS OF RATIFICATION
5 E?PRESS +ora( or &r!tten.
5 TACIT +!"p(!e$.
Rat!f!cat!on "a' %e effecte$ eBpre(' or tac!t('. It ! 4n$ertoo$ that there ! a
tac!t rat!f!cat!on !f) &!th 9no&(e$#e of the reaon &h!ch ren$er the contract
*o!$a%(e an$ 4ch reaon ha*!n# ceae$) the peron &ho ha a r!#ht to !n*o9e !t
ho4($ eBec4te an act &h!ch necear!(' !"p(!e an !ntent!on to &a!*e h! r!#ht.
+1311a.
13>-
RATIFICATION :3 G1ARDIAN
Rat!f!cat!on "a' %e effecte$ %' the #4ar$!an of the !ncapac!tate$ peron. +n.
13>5
CONFOR2IT3 OF G1ILT3 PART3 NOT
NEEDED
Rat!f!cat!on $oe not reA4!re the confor"!t' of the contract!n# part' &ho ha no
r!#ht to %r!n# the act!on for ann4("ent. +131,.
13>/
RETROACTIVE EFFECT OF
RATIFICATION
Rat!f!cat!on c(eane the contract fro" a(( !t $efect fro" the "o"ent !t &a
cont!t4te$. +1313.
Finals Provisions Reviewer OBLIGATIONS AND CONTRACTS
YSRefran 12
13>;
PERSONS 6DO 2A3 ASH FOR
ANN1L2ENT0 PART3 +pr!nc!pa( or
4%!$!ar'. 6DOSE CONSENT 6AS
VITIATED
CREDITORS OF VICTI2 CANIT ASH
FOR ANN1L2ENT G the'Ire not %o4n$ %'
the contract
ACTIVE 2ISREPRESENTATION :3
2INOR G canIt (ater on 4e for ann4("ent
The act!on for the ann4("ent of contract "a' %e !nt!t4te$ %' a(( &ho are
there%' o%(!#e$ pr!nc!pa((' or 4%!$!ar!('. Do&e*er) peron &ho are capa%(e
cannot a((e#e the !ncapac!t' of thoe &!th &ho" the' contracte$= nor can thoe
&ho eBerte$ !nt!"!$at!on) *!o(ence) or 4n$4e !nf(4ence) or e"p(o'e$ fra4$) or
ca4e$ "!ta9e %ae the!r act!on 4pon thee f(a& of the contract. +130,a.
13><
EFFECTS OF ANN1L2ENT
1. Contract hanIt %een co"p(!e$ &!th0
PARTIES E?C1SED FRO2 TDEIR
O:LIGATIONS
,. Contract a(rea$' perfor"e$0 21T1AL
RESTIT1TION +!n #enera(. of
5 TDING) &J FR1ITS
5 PRICE) &J INTEREST
An o%(!#at!on ha*!n# %een ann4((e$) the contract!n# part!e ha(( retore to each
other the th!n# &h!ch ha*e %een the 4%8ect "atter of the contract) &!th the!r
fr4!t) an$ the pr!ce &!th !t !nteret) eBcept !n cae pro*!$e$ %' (a&.
In o%(!#at!on to ren$er er*!ce) the *a(4e thereof ha(( %e the %a! for $a"a#e.
+1303a.
13>>
E?CEPTION TO 21T1AL RESTIT1TION
PER 13>< G ONL3 TO E?TENT OF
ENRICD2ENT
NO PRES12PTION OF ENRICD2ENT
6hen the $efect of the contract con!t !n the !ncapac!t' of one of the part!e)
the !ncapac!tate$ peron ! not o%(!#e$ to "a9e an' ret!t4t!on eBcept !nofar a
he ha %een %enef!te$ %' the th!n# or pr!ce rece!*e$ %' h!". +130-.
1-00
VAL1E of th!n# &J !nteret 2A3 :E
S1:STIT1TED FOR TDING ITSELF
6hene*er the peron o%(!#e$ %' the $ecree of ann4("ent to ret4rn the th!n# can
not $o o %eca4e !t ha %een (ot thro4#h h! fa4(t) he ha(( ret4rn the fr4!t
rece!*e$ an$ the *a(4e of the th!n# at the t!"e of the (o) &!th !nteret fro" the
a"e $ate. +130;a.
1-01
ACTION to ann4( E?TING1ISDED 6J
LOSS OF O:CECT TDRO1GD FRA1D
OR FA1LT OF VICTI2 +peron &ho ha
r!#ht to !nt!t4te procee$!n#.
The act!on for ann4("ent of contract ha(( %e eBt!n#4!he$ &hen the th!n# &h!ch
! the o%8ect thereof ! (ot thro4#h the fra4$ or fa4(t of the peron &ho ha a
r!#ht to !nt!t4te the procee$!n#.
If the r!#ht of act!on ! %ae$ 4pon the !ncapac!t' of an' one of the contract!n#
part!e) the (o of the th!n# ha(( not %e an o%tac(e to the 4cce of the act!on)
4n(e a!$ (o too9 p(ace thro4#h the fra4$ or fa4(t of the p(a!nt!ff. +131-a.
1-0,
ONE CANIT :E CO2PELLED TO
RESTORE IF OTDER DOESNIT G
rec!proca( o%(!#at!on of ret!t4t!on ha
%een create$
A (on# a one of the contract!n# part!e $oe not retore &hat !n *!rt4e of the
$ecree of ann4("ent he ! %o4n$ to ret4rn) the other cannot %e co"pe((e$ to
co"p(' &!th &hat ! !nc4"%ent 4pon h!". +130<.
Chapter <. 1NENFORCEA:LE CONTRACTS +n.
1-03
1NENFORCEA:LE CONTRACTS0
contract that %' reaon of tat4tor'
$efect $onIt confer an' act!on to enforce
the a"e 4nt!( an$ 4n(e the'Ire rat!f!e$
!n the "anner precr!%e$ %' (a&
HINDS
1. 1NA1TDORIEED contract0 entere$
!nto !n another peronI na"e !n eBce of
or &Jo a4thor!t'
,. Thoe that FAIL TO CO2PL3 6J
STAT1TE OF FRA1DS +certa!n
a#ree"ent reAI$ !n &r!t!n# to pre*ent
fra4$
3. Thoe &here :OTD PARTIES are
INCAPA:LE OF GIVING CONSENT TO
A CONTRACT
SoF0 GEN. R1LES OF APPLICATION
The fo((o&!n# contract are 4nenforcea%(e) 4n(e the' are rat!f!e$0
+1. Thoe entere$ !nto !n the na"e of another peron %' one &ho ha %een
#!*en no a4thor!t' or (e#a( repreentat!on) or &ho ha acte$ %e'on$ h! po&er=
+,. Thoe that $o not co"p(' &!th the Stat4te of Fra4$ a et forth !n th!
n4"%er. In the fo((o&!n# cae an a#ree"ent hereafter "a$e ha(( %e
4nenforcea%(e %' act!on) 4n(e the a"e) or o"e note or "e"oran$4")
thereof) %e !n &r!t!n#) an$ 4%cr!%e$ %' the part' char#e$) or %' h! a#ent=
e*!$ence) therefore) of the a#ree"ent cannot %e rece!*e$ &!tho4t the &r!t!n#) or
a econ$ar' e*!$ence of !t content0
+a. An a#ree"ent that %' !t ter" ! not to %e perfor"e$ &!th!n a 'ear fro"
the "a9!n# thereof=
+%. A pec!a( pro"!e to an&er for the $e%t) $efa4(t) or "!carr!a#e of
another=
+c. An a#ree"ent "a$e !n con!$erat!on of "arr!a#e) other than a "4t4a(
pro"!e to "arr'=
+$. An a#ree"ent for the a(e of #oo$) chatte( or th!n# !n act!on) at a pr!ce
not (e than f!*e h4n$re$ peo) 4n(e the %4'er accept an$ rece!*e part
of 4ch #oo$ an$ chatte() or the e*!$ence) or o"e of the") of 4ch
Finals Provisions Reviewer OBLIGATIONS AND CONTRACTS
YSRefran 13
5 App(!e to E?EC1TOR3
CONTRACTS
5 App(!e !f thereI a PRINCIPAL
DE:TOR +OTDER TDAN
DEFENDANT. LIA:LE
5 I E?CL1SIVE G app(!e on(' to
contract en4"erate$ there!n
5 +1-05. 2a' %e 6AIVED :30
M T!"e(' FAIL1RE TO O:CECT TO
PRESENTATION OF ORAL
EVIDENCE TO PROVE ORAL
AGREE2ENT
M ACCEPTANCEOF :ENEFITS 4n$er
the"
5 PERSONAL DEFENSE G canIt
%e aa!(e$ %' th!r$ peron
5 Contract !nfr!n#!n# SoF
4nenforcea%(e
5 R1LE OF E?CL1SION
5 Concern !te(f on(' &J
AD2ISSI:ILIT3 OF EVIDENCE
5 DOESNIT APPL3 IF ITIS
CLAI2ED that the CONTRACT
DOESNIT E?PRESS PARTIESI TR1E
AGREE2ENT
th!n# !n act!on or pa' at the t!"e o"e part of the p4rchae "one'= %4t
&hen a a(e ! "a$e %' a4ct!on an$ entr' ! "a$e %' the a4ct!oneer !n h!
a(e %oo9) at the t!"e of the a(e) of the a"o4nt an$ 9!n$ of propert' o($)
ter" of a(e) pr!ce) na"e of the p4rchaer an$ peron on &hoe
acco4nt the a(e ! "a$e) !t ! a 4ff!c!ent "e"oran$4"=
+e. An a#ree"ent of the (ea!n# for a (on#er per!o$ than one 'ear) or for the
a(e of rea( propert' or of an !nteret there!n=
+f. A repreentat!on a to the cre$!t of a th!r$ peron.
+3. Thoe &here %oth part!e are !ncapa%(e of #!*!n# conent to a contract.
1-0- 1na4thor!Fe$ contract are #o*erne$ %' Art!c(e 131; an$ the pr!nc!p(e of
a#enc' !n T!t(e ? of th! :oo9.
1-05
RATIFICATION OF CONTRACTS
INFRINGING SoF
1. FAIL1RE TO O:CECT TO
PRESENTATION OF ORAL EVIDENCE
+$ee"e$ a &a!*er.
,. ACCEPTANCE OF :ENEFITS 1NDER
TDE2 +th4 SoF $oenIt app(' to
eBec4te$ or part!a((' eBec4te$ contract.
Contract !nfr!n#!n# the Stat4te of Fra4$) referre$ to !n No. , of Art!c(e 1-03) are
rat!f!e$ %' the fa!(4re to o%8ect to the preentat!on of ora( e*!$ence to pro*e the
a"e) or %' the acceptance of %enef!t 4n$er the".
1-0/
RIGDT OF ONE PART3 TO CO2PEL
OTDER TO E?EC1TE NEEDED
INSTR12ENT G GIVEN ONL3 6DEN
CONTRACT IS :OTD VALID 7
ENFORCEA:LE
6hen a contract ! enforcea%(e 4n$er the Stat4te of Fra4$) an$ a p4%(!c
$oc4"ent ! necear' for !t re#!trat!on !n the Re#!tr' of Dee$) the part!e
"a' a*a!( the"e(*e of the r!#ht 4n$er Art!c(e 135;.
1-0;
:OTD PARTIES INCAPACITATED
+EBpreJ!"p(!e$. RATIFICATION :3 A
PART3IS PARENTJG1ARDIAN G#!*e
effect a !f on(' one part' ! !ncapac!tate$
+VOIDA:LE contract.
RATIFICATION :3
PARENTSJG1ARDIANS OF :OTD
PARTIES G VALID fro" %e#!nn!n#
In a contract &here %oth part!e are !ncapa%(e of #!*!n# conent) eBpre or
!"p(!e$ rat!f!cat!on %' the parent) or #4ar$!an) a the cae "a' %e) of one of the
contract!n# part!e ha(( #!*e the contract the a"e effect a !f on(' one of the"
&ere !ncapac!tate$.
If rat!f!cat!on ! "a$e %' the parent or #4ar$!an) a the cae "a' %e) of %oth
contract!n# part!e) the contract ha(( %e *a(!$ate$ fro" the !ncept!on.
1-0<
STRANGERS CANIT ASSAIL
1NENFORCEA:LE CONTRACTS
1nenforcea%(e contract cannot %e aa!(e$ %' th!r$ peron.
Chapter >. VOID AND INE?ISTENT CONTRACTS
1-0>
HINDS
1. LACHING an ESSENTIAL ELE2ENT
+13-/) 13-;.
,. ILLEGAL contract +protect #enera(
!nteret.
3. Contract that are E?PRESSL3
PRODI:ITED +protect pr!*ate !nteret.
-. Contract DECLARED VOID :3 LA6
The fo((o&!n# contract are !neB!tent an$ *o!$ fro" the %e#!nn!n#0
+1. Thoe &hoe ca4e) o%8ect or p4rpoe ! contrar' to (a&) "ora() #oo$
c4to") p4%(!c or$er or p4%(!c po(!c'=
+,. Thoe &h!ch are a%o(4te(' !"4(ate$ or f!ct!t!o4=
+3. Thoe &hoe ca4e or o%8ect $!$ not eB!t at the t!"e of the tranact!on=
Finals Provisions Reviewer OBLIGATIONS AND CONTRACTS
YSRefran 1
CDARACTERISTICS OF VOID 7
INE?ISTENT CONTRACTS
1. CANIT :E RATIFIED +1-0>.
,. ACTIONJDEFENSE to $ec(are
!neB!tence ! I2PRESCRIPTI:LE +1-10.
3. RIGDT TO SET 1P DEFENSE OF
ILLEGALIT3 CANIT :E 6AIVED +1-0>.
-. DEFENSE NOT AVAILA:LE TO
TDIRD PERSONS 6DOSE INTERESTS
ARE NOT DIRECTL3 AFFECTED +1-,1.
5. CANIT GIVE RISE TO A CONTRACT
+1-,,.
/. Genera((' pro$4ce NO EFFECT
;. Genera((') NO ACTION TO DECLARE
TDE2 VOID IS NEEDED
+-. Thoe &hoe o%8ect ! o4t!$e the co""erce of "en=
+5. Thoe &h!ch conte"p(ate an !"po!%(e er*!ce=
+/. Thoe &here the !ntent!on of the part!e re(at!*e to the pr!nc!pa( o%8ect of the
contract cannot %e acerta!ne$=
+;. Thoe eBpre(' proh!%!te$ or $ec(are$ *o!$ %' (a&.
Thee contract cannot %e rat!f!e$. Ne!ther can the r!#ht to et 4p the $efene of
!((e#a(!t' %e &a!*e$.
1-10
ACTION for $ec(arat!on of !neB!tence of
contract I2PRESCRIPTI:LE
The act!on or $efene for the $ec(arat!on of the !neB!tence of a contract $oe
not precr!%e.
1-11
IN PARI DELICTO0 %oth PARTIES
E@1ALL3 G1ILT3 L NO ACTION
AGAINST EACD OTDER
6hen the n4((!t' procee$ fro" the !((e#a(!t' of the ca4e or o%8ect of the
contract) an$ the act cont!t4te a cr!"!na( offene) %oth part!e %e!n# !n par!
$e(!cto) the' ha(( ha*e no act!on a#a!nt each other) an$ %oth ha(( %e
proec4te$. 2oreo*er) the pro*!!on of the Pena( Co$e re(at!*e to the $!poa(
of effect or !ntr4"ent of a cr!"e ha(( %e app(!ca%(e to the th!n# or the pr!ce
of the contract.
Th! r4(e ha(( %e app(!ca%(e &hen on(' one of the part!e ! #4!(t'= %4t the
!nnocent one "a' c(a!" &hat he ha #!*en) an$ ha(( not %e %o4n$ to co"p('
&!th h! pro"!e. +1305.
1-1,
HINDS of ILLEGAL contract
1. Thoe &here there ! a CRI2INAL
OFFENSE
a. :OTD part!e G1ILT3 +!n par!
$e(!cto.
5 NO ACTION a#a!nt each other
5 :OTD PROSEC1TED
5 EFFECTSJINSTR12ENTS OF
CRI2E CONFISCATED IN FAVOR
OF GOVIT
%. ONL3 ONE IS G1ILT3
5 G1ILT3 PART3 PROSEC1TED
5 INSTR12ENT OF CRI2E
CONFISCATED
5 INNOCENT PART3 2A3 CLAI2
6DAT DE DAS GIVEN= OR !f he
hanIt #!*en an'th!n# 'et) NOT
:O1ND TO CO2PL3 &J h!
pro"!e
,. Thoe &here there ! NO CRI2INAL
OFFENSE
a. :OTD part!e G1ILT3 +!n par!
$e(!cto.
5 NEITDER 2A3 RECOVER &hat
he ha #!*en or $e"an$
perfor"ance
%. ONL3 ONE IS G1ILT3
5 G1ILT3 PART3 2A3 NOT
RECOVER &hat he ha #!*en or
$e"an$ perfor"ance
5 PART3 NOT AT FA1LT 2A3
DE2AND RET1RN of &hat he ha
#!*en &Jo o%(!#at!on to co"p(' &J h!
pro"!e
IN PARI DELICTO
If the act !n &h!ch the 4n(a&f4( or for%!$$en ca4e con!t $oe not cont!t4te a
cr!"!na( offene) the fo((o&!n# r4(e ha(( %e o%er*e$0
+1. 6hen the fa4(t ! on the part of %oth contract!n# part!e) ne!ther "a' reco*er
&hat he ha #!*en %' *!rt4e of the contract) or $e"an$ the perfor"ance of the
otherK 4n$erta9!n#=
+,. 6hen on(' one of the contract!n# part!e ! at fa4(t) he cannot reco*er &hat
he ha #!*en %' reaon of the contract) or a9 for the f4(f!(("ent of &hat ha %een
pro"!e$ h!". The other) &ho ! not at fa4(t) "a' $e"an$ the ret4rn of &hat he
ha #!*en &!tho4t an' o%(!#at!on to co"p(' h! pro"!e. +130/.
Finals Provisions Reviewer OBLIGATIONS AND CONTRACTS
YSRefran 1!
5 DOESNIT APPL3 TO A:SOL1TEL3
SI21LATED contract
5 DOESNIT APPL3 6DERE S1PERIOR
P1:LIC POLIC3 INTERVENES
5 DOESNIT APPL3 TO VOID
CONTRACTS SI21LATED TO
CIRC12VENT A LA6
5 INAPPLICA:LE TO INE?ISTENT 7
VOID CONTRACTS
1-13
E?CESS +tr!ct(' pea9!n#.
1-Q 5 4nec4re$ (oan
1,Q 5 ec4re$ (oan &J re#!tere$ rea(
etate a ec4r!t'
,.5Q per "o) ,Q per "o) 1-Q per 'r G
pa&nhop
Interet pa!$ !n eBce of the !nteret a((o&e$ %' the 44r' (a& "a' %e
reco*ere$ %' the $e%tor) &!th !nteret thereon fro" the $ate of the pa'"ent.
1-1-
One CASE 6DERE RECOVER3 CAN :E
2ADE EVEN IF part!e are IN PARI
DELICTO G 1NACCO2PLISDED
P1RPOSE 7 NO DA2AGE CA1SED TO
AN3 3
RD
PERSON
App(!e e*en !f part!e arenIt eA4a(('
#4!(t') an$ &here p4%(!c po(!c' &o4($ %e
a$*ance$ %' a((o&!n# 4!t for re(!ef
6hen "one' ! pa!$ or propert' $e(!*ere$ for an !((e#a( p4rpoe) the contract
"a' %e rep4$!ate$ %' one of the part!e %efore the p4rpoe ha %een
acco"p(!he$) or %efore an' $a"a#e ha %een ca4e$ to a th!r$ peron. In 4ch
cae) the co4rt "a') !f the p4%(!c !nteret &!(( th4 %e 4%er*e$) a((o& the part'
rep4$!at!n# the contract to reco*er the "one' or propert'.
1-15
EFFECT IF ONE PART3 IS
INCAPACITATED G RECOVER3
POSSI:LE
6here one of the part!e to an !((e#a( contract ! !ncapa%(e of #!*!n# conent) the
co4rt "a') !f the !nteret of 84t!ce o $e"an$ a((o& reco*er' of "one' or
propert' $e(!*ere$ %' the !ncapac!tate$ peron.
1-1/
Contract ILLEGAL PER SE0 thoe
FOR:IDDEN :EC. OF P1:LIC
INTEREST
2EREL3 PRODI:ITED contract0 thoe
FOR:IDDEN :EC. OF PRIVATE
INTERESTS. RECOVER3 PER2ITTED)
pro*!$e$0
5 CONTRACT NOT ILLEGAL PER SE
5 PRODI:ITION DESIGNED FOR
PLAINTIFFIS PROTECTION
5 P1:LIC POLIC3 &o4($ %e ENDANCED
:3 ALLO6ING RECOVER3
6hen the a#ree"ent ! not !((e#a( per e %4t ! "ere(' proh!%!te$) an$ the
proh!%!t!on %' the (a& ! $e!#nate$ for the protect!on of the p(a!nt!ff) he "a') !f
p4%(!c po(!c' ! there%' enhance$) reco*er &hat he ha pa!$ or $e(!*ere$.
1-1;
R4(e !n cae of PA32ENT IN E?CESS
OF 2A? PRICE G RECOVER3 OF
E?CESS ALLO6ED
6hen the pr!ce of an' art!c(e or co""o$!t' ! $eter"!ne$ %' tat4te) or %'
a4thor!t' of (a&) an' peron pa'!n# an' a"o4nt !n eBce of the "aB!"4" pr!ce
a((o&e$ "a' reco*er 4ch eBce.
1-1<
DO1RS OF LA:OR
6hen the (a& f!Be) or a4thor!Fe the f!B!n# of the "aB!"4" n4"%er of ho4r of
(a%or) an$ a contract ! entere$ !nto &here%' a (a%orer 4n$erta9e to &or9 (on#er
than the "aB!"4" th4 f!Be$) he "a' $e"an$ a$$!t!ona( co"penat!on for
er*!ce ren$ere$ %e'on$ the t!"e (!"!t.
1-1>
NO 6AIVER OF RIGDT TO 2IN. 6AGE
6hen the (a& et) or a4thor!Fe the ett!n# of a "!n!"4" &a#e for (a%orer)
an$ a contract ! a#ree$ 4pon %' &h!ch a (a%orer accept a (o&er &a#e) he ha((
%e ent!t(e$ to reco*er the $ef!c!enc'.
1-,0
ILLEGAL TER2S OF CONTRACT
5 INDIVISI:LE contract0 VOID contract
5 DIVISI:LE contract0 LEGAL TER2S
"a' %e ENFORCED IF SA2E CAN :E
SEPARATED FRO2 ILLEGAL ONES
In cae of a $!*!!%(e contract) !f the !((e#a( ter" can %e eparate$ fro" the (e#a(
one) the (atter "a' %e enforce$.
1-,1
Genera((') DEFENSE OF ILLEGALIT3
NOT AVAILA:LE TO 3
RD
PERSONS
The $efene of !((e#a(!t' of contract ! not a*a!(a%(e to th!r$ peron &hoe
!nteret are not $!rect(' affecte$.
1-,, A contract &h!ch ! the $!rect re4(t of a pre*!o4 !((e#a( contract) ! a(o *o!$ an$
Finals Provisions Reviewer OBLIGATIONS AND CONTRACTS
YSRefran 1"
!neB!tent.
TITLE III. NAT1RAL O:LIGATIONS
1-,3
NAT1RAL O:LIGATIONS0 %ae$ on
eA4!t' an$ nat4ra( (a&) an$ $onIt #rant
r!#ht of act!on to enforce the!r
perfor"ance
EFFECT0 after o%(!#orI VOL1NTAR3
F1LFILL2ENT) 6DAT DAS :EEN
DELIVERED OR RENDERED thereof
CAN :E RETAINED
O%(!#at!on are c!*!( or nat4ra(. C!*!( o%(!#at!on #!*e a r!#ht of act!on to co"pe(
the!r perfor"ance. Nat4ra( o%(!#at!on) not %e!n# %ae$ on po!t!*e (a& %4t on
eA4!t' an$ nat4ra( (a&) $o not #rant a r!#ht of act!on to enforce the!r
perfor"ance) %4t after *o(4ntar' f4(f!(("ent %' the o%(!#or) the' a4thor!Fe the
retent!on of &hat ha %een $e(!*ere$ or ren$ere$ %' reaon thereof. So"e
nat4ra( o%(!#at!on are et forth !n the fo((o&!n# art!c(e.
1-,-
EFFECT OF E?TINCTIVE
PRESCRIPTION G RIGDT OR
PROPERT3 DAS :EEN LOST
6hen a r!#ht to 4e 4pon a c!*!( o%(!#at!on ha (ape$ %' eBt!nct!*e precr!pt!on)
the o%(!#or &ho *o(4ntar!(' perfor" the contract cannot reco*er &hat he ha
$e(!*ere$ or the *a(4e of the er*!ce he ha ren$ere$.
1-,5
PA32ENT :3 3
RD
PERSON
5 6JO HNO6LEDGE OF DE:TOR
5 AGAINST DE:TORIS 6ILL
PA32ENT 6J DE:TORIS CONSENT G
CIVIL O:LIGATION ARISES
6hen &!tho4t the 9no&(e$#e or a#a!nt the &!(( of the $e%tor) a th!r$ peron pa'
a $e%t &h!ch the o%(!#or ! not (e#a((' %o4n$ to pa' %eca4e the act!on thereon
ha precr!%e$) %4t the $e%tor (ater *o(4ntar!(' re!"%4re the th!r$ peron) the
o%(!#or cannot reco*er &hat he ha pa!$.
1-,/
AGE OF 2ACORIT3 NO6 1<
VOL1NTAR3 RET1RN AFTER
ANN1L2ENT0 CANIT DE2AND RET1RN
6hen a "!nor %et&een e!#hteen an$ t&ent'5one 'ear of a#e &ho ha entere$
!nto a contract &!tho4t the conent of the parent or #4ar$!an) after the ann4("ent
of the contract *o(4ntar!(' ret4rn the &ho(e th!n# or pr!ce rece!*e$)
not&!thtan$!n# the fact the he ha not %een %enef!te$ there%') there ! no r!#ht
to $e"an$ the th!n# or pr!ce th4 ret4rne$.
1-,;
O:LIGEEIS GOOD FAITD 21ST :E
PRESENT AT TI2E OF SPENDING OR
CONS12ING
6hen a "!nor %et&een e!#hteen an$ t&ent'5one 'ear of a#e) &ho ha entere$
!nto a contract &!tho4t the conent of the parent or #4ar$!an) *o(4ntar!(' pa' a
4" of "one' or $e(!*er a f4n#!%(e th!n# !n f4(f!(("ent of the o%(!#at!on) there
ha(( %e no r!#ht to reco*er the a"e fro" the o%(!#ee &ho ha pent or
con4"e$ !t !n #oo$ fa!th. +11/0A.
1-,<
DEFENDANT) &ho ! the 6INNER IN
ACTION TO ENFORCE A CIVIL
O:LIGATION) VOL1NTARIL3
PERFOR2S o%(!#at!on CANIT DE2AND
RET1RN
6hen) after an act!on to enforce a c!*!( o%(!#at!on ha fa!(e$ the $efen$ant
*o(4ntar!(' perfor" the o%(!#at!on) he cannot $e"an$ the ret4rn of &hat he ha
$e(!*ere$ or the pa'"ent of the *a(4e of the er*!ce he ha ren$ere$.
1-,>
PA32ENT OF DE:TS :E3OND VAL1E
OF DECEDENTIS ESTATE G VALID
PA32ENT 7 CANIT :E RESCINDED :3
PA3ER
6hen a tetate or !ntetate he!r *o(4ntar!(' pa' a $e%t of the $ece$ent
eBcee$!n# the *a(4e of the propert' &h!ch he rece!*e$ %' &!(( or %' the (a& of
!ntetac' fro" the etate of the $eceae$) the pa'"ent ! *a(!$ an$ cannot %e
rec!n$e$ %' the pa'er.
1-30
6ILL DENIED PRO:ATE %eca4e !t
6ASNIT E?EC1TED 6J FOR2ALITIES
PRESCRI:ED :3 LA6 G PA32ENT OF
LEGAC3 ACCDG TO ITS TER2S IS
EFFECTIVE AND IRREVOCA:LE
6hen a &!(( ! $ec(are$ *o!$ %eca4e !t ha not %een eBec4te$ !n accor$ance
&!th the for"a(!t!e reA4!re$ %' (a&) %4t one of the !ntetate he!r) after the
ett(e"ent of the $e%t of the $eceae$) pa' a (e#ac' !n co"p(!ance &!th a
c(a4e !n the $efect!*e &!(() the pa'"ent ! effect!*e an$ !rre*oca%(e.
TITLE IV. ESTOPPEL +n.
1-31
CONCEPT of ESTOPPEL
Thro4#h etoppe( an a$"!!on or repreentat!on ! ren$ere$ conc(4!*e 4pon
the peron "a9!n# !t) an$ cannot %e $en!e$ or $!pro*e$ a a#a!nt the peron
re('!n# thereon.
1-3,
PRINCIPLES OF ESTOPPEL ONL3
S1PPLETOR3
The pr!nc!p(e of etoppe( are here%' a$opte$ !nofar a the' are not !n conf(!ct
&!th the pro*!!on of th! Co$e) the Co$e of Co""erce) the R4(e of Co4rt an$
pec!a( (a&.
1-33
HINDS of ESTOPPEL
1. Etoppe( IN PAIS +E@1ITA:LE
ESTOPPEL.0 !t4at!on &here) %eca4e of
o"eth!n# &Jc he hanIt $one or o"!tte$
Etoppe( "a' %e !n pa! or %' $ee$.
Finals Provisions Reviewer OBLIGATIONS AND CONTRACTS
YSRefran 1#
to $o) a part' ! $en!e$ the r!#ht to p(ea$
or pro*e an other&!e !"portant fact
5 :' COND1CT or %' acceptance of
%enef!t
5 :' REPRESENTATION OR
CONCEAL2ENT
5 :' SILENCE
5 :' O2ISSION
5 :' LACDES +4nreaona%(e $e(a' !n
4!n#.
,. Etoppe( :3 DEED +TECDNICAL
ESTOPPEL.0 %ar &Jc prec(4$e one part'
to a $ee$ 7 h! pr!*!e fro" aert!n# a
a#a!nt the other part' 7 h! pr!*!e) an'
r!#ht or t!t(e !n $ero#at!on of the $ee$ or
fro" $en'!n# tr4th of "atI( fact aerte$
5 :' DEED PROPER
5 :' C1DG2ENT AS A CO1RT
RECORD
1-3-
SALE OF RAFTER5AC@1IRED PROP.S G
pre84$!ce not eent!a(
6hen a peron &ho ! not the o&ner of a th!n# e(( or a(!enate an$ $e(!*er !t)
an$ (ater the e((er or #rantor acA4!re t!t(e thereto) 4ch t!t(e pae %'
operat!on of (a& to the %4'er or #rantee.
1-35
ESTOPPEL CREATED IN
REPRESENTATIVE CAPACIT3 G
pre84$!ce not eent!a(
If a peron !n repreentat!on of another e(( or a(!enate a th!n#) the for"er
cannot 4%eA4ent(' et 4p h! o&n t!t(e a a#a!nt the %4'er or #rantee.
1-3/
ESTOPPEL ON PART OF LESSEE OR
:AILOR
A (eee or a %a!(ee ! etoppe$ fro" aert!n# t!t(e to the th!n# (eae$ or
rece!*e$) a a#a!nt the (eor or %a!(or.
1-3;
RE@1ISITES of ESTOPPEL IN PAIS
5 on PART3 ESTOPPED
1. COND1CT A2O1NTING TO
FALSE REPRESENTATION OR
CONCEAL2ENT OF 2ATIL FACTS
,. INTENT OR E?PECTATION
COND1CT ha(( %e ACTED 1PON :3
OTDER PART3
3. HNO6LEDGE +act4a( or
contr4ct!*e. OF TDE TR1TD
5 on PART3 INVOHING ESTOPPEL
1. LACH OF HNO6LEDGE 7 2EANS
TO ASCERTAIN TDE TR1TD
,. RELIANCE 1PON COND1CT OF
PART3 ESTOPPED
3. ACTION +OR FAIL1RE TO ACT.
SO AS TO CDANGE DIS POSITION
PREC1DICIALL3
-. PREC1DICE 1NLESS ESTOPPEL
IS APPLIED
ESTOPPEL CONCERNING I22OVA:LE
PROPERT3 G ONE SDO1LDIVE :EEN
2ISLED
CONSENT ON PART OF O6NER
ESTOPS DI2 FRO2 ASSERTING AN3
RIGDT OVER TDE PROPERT3
6hen !n a contract %et&een th!r$ peron concern!n# !""o*a%(e propert') one
of the" ! "!(e$ %' a peron &!th repect to the o&nerh!p or rea( r!#ht o*er the
rea( etate) the (atter ! prec(4$e$ fro" aert!n# h! (e#a( t!t(e or !nteret there!n)
pro*!$e$ a(( thee reA4!!te are preent0
+1. There "4t %e fra4$4(ent repreentat!on or &ron#f4( concea("ent of fact
9no&n to the part' etoppe$=
+,. The part' prec(4$e$ "4t !nten$ that the other ho4($ act 4pon the fact a
"!repreente$=
+3. The part' "!(e$ "4t ha*e %een 4na&are of the tr4e fact= an$
+-. The part' $efra4$e$ "4t ha*e acte$ !n accor$ance &!th the
"!repreentat!on.
1-3<
ESTOPPEL RES1LTING FRO2
ACCEPTANCE OF :ENEFITS
ESTOPPEL ALSO APPLIES IF TAGENTI
6AS GIVEN APPARENT A1TDORIT3) 7
OTDER PART3 6AS 2ISLED INTO
GIVING DI2 CREDIT
One &ho ha a((o&e$ another to a4"e apparent o&nerh!p of perona(
propert' for the p4rpoe of "a9!n# an' tranfer of !t) cannot) !f he rece!*e$ the
4" for &h!ch a p(e$#e ha %een cont!t4te$) et 4p h! o&n t!t(e to $efeat the
p(e$#e of the propert') "a$e %' the other to a p(e$#ee &ho rece!*e$ the a"e !n
#oo$ fa!th an$ for *a(4e.
Finals Provisions Reviewer OBLIGATIONS AND CONTRACTS
YSRefran 1$
1-3>
PERSONS :O1ND :3 ESTOPPEL
5 Genera((' GOVIT NOT :O1ND :3
ESTOPPEL
5 Etoppe( APPLIES ONL3 TO
@1ESTIONS OF FACT) tr4th of &Jc the
other part' ! !#norant
ESTOPPEL CANIT VALIDATE A VOID
CONTRACT
PRO2ISSOR3 ESTOPPEL0 pro"!e to
$o or not to $o o"eth!n# !n the f4t4re
!nten$e$ to %e re(!e$ 4pon 7 &a o re(!e$
4pon) an$ a ref4a( to enforce !t &o4($
*!rt4a((' anct!on fra4$ or !n84t!ce
AGENC3 :3 ESTOPPEL
Etoppe( ! effect!*e on(' a %et&een the part!e thereto or the!r 4cceor !n
!nteret.
TITLE V. TR1STS +n.
Chapter 1. GENERAL PROVISIONS
1--0
TR1ST0 f!$4c!ar' re(at!onh!p 6RT
propert') 4%8ect!n# peron ho($!n# the
a"e to the o%(!#at!on of $ea(!n# &J the
propert' for another peronI %enef!t
0 r!#ht to the %enef!c!a( en8o'"ent
of propert') the (e#a( t!t(e to &Jc ! *ete$
!n another
ELE2ENTS
1. PARTIES to the tr4t
a. TR1STOR or ett(er G eta%(!he
the tr4t
%. TR1STEE G ho($ propert' !n tr4t
for anotherI %enef!t
c. :ENEFICIAR3 +CEST1I @1E
TR1ST. G peron for &hoe %enef!t
the tr4t ha %een create$
NOTE0 The tr4tor "a' a(o %e the
%enef!c!ar'.
,. TR1ST PROPERT3 or tr4t etate or
4%8ect "atter of the tr4t
CDARACTERISTICS
1. FID1CIAR3 RELATIONSDIP
,. CREATED :3 LA6 OR :3
AGREE2ENT
3. LEGAL TITLE DELD :3 ONE) an$
E@1ITA:LEJ:ENEFICIAL TITLE DELD
:3 ANOTDER
A peron &ho eta%(!he a tr4t ! ca((e$ the tr4tor= one !n &ho" conf!$ence !
repoe$ a re#ar$ propert' for the %enef!t of another peron ! 9no&n a the
tr4tee= an$ the peron for &hoe %enef!t the tr4t ha %een create$ ! referre$
to a the %enef!c!ar'.
1--1
CLASSES OF TR1ST
1. E?PRESS0 create$ %' aent of the
part!e) or %' the !ntent!on of the tr4tor
,. I2PLIED0 create$ %' operat!on of (a&
a. RES1LTING TR1STS0 !"poe$ %'
(a& to carr' o4t act4a( or pre4"e$
!ntent of the part!e) &here the eBpre
tr4t fa!(
%. CONSTR1CTIVE TR1STS0 et. %'
(a&) re#ar$(e of !ntent!on) to pre*ent
fra4$) oppre!on) or 4n84t enr!ch"ent
Tr4t are e!ther eBpre or !"p(!e$. EBpre tr4t are create$ %' the !ntent!on
of the tr4tor or of the part!e. I"p(!e$ tr4t co"e !nto %e!n# %' operat!on of (a&.
Finals Provisions Reviewer OBLIGATIONS AND CONTRACTS
YSRefran 1%
1--,
PRINCIPLES OF GEN. LA6 OF TR1STS
2EREL3 S1PPLETOR3
The pr!nc!p(e of the #enera( (a& of tr4t) !nofar a the' are not !n conf(!ct &!th
th! Co$e) the Co$e of Co""erce) the R4(e of Co4rt an$ pec!a( (a& are
here%' a$opte$.
Chapter ,. E?PRESS TR1STS
1--3
E?PRESS TR1STS DONIT PRESCRI:E
7 2A3 NOT :E PROVED :3 ORAL
EVIDENCE
FOR2ALITIES RE E?PRESS TR1STS
5 FOR ENFORCEA:ILIT3
5 FOR TR1ST OVER PERSONAL PROP)
ORAL AGREE2ENT IS VALID 7
ENFORCEA:LE :ET. TDE PARTIES
5 RE 3
RD
PERSONS0 tr4t !n P1:LIC
INSTR12ENT 7 REGISTERED !n
Re#!tr' of Prop. !f !t concern rea( prop.
No eBpre tr4t concern!n# an !""o*a%(e or an' !nteret there!n "a' %e
pro*e$ %' paro( e*!$ence.
1---
CREATION OF E?PRESS TR1ST
2ETDOD
1. DECLARATION OF TR1STOR TDAT
DE DOLDS PROP IN TR1ST
,. CONVE3ANCE TO TR1STEE INTER
VIVOS OR :3 TESTA2ENT
CLEAR INTENTION to create a tr4t
CAPACIT3
5 TR1STOR capac!tate$ to TRANSFER
PROP
5 TR1STEE capac!tate$ to DOLD PROP
7 O:LIGATE DI2SELF
5 :ENEFICIAR3 capac!tate$ to RECEIVE
GRAT1ITO1SL3 FRO2 TR1STOR
AD2INISTRATION +R4(e ><)RoC.
No part!c4(ar &or$ are reA4!re$ for the creat!on of an eBpre tr4t) !t %e!n#
4ff!c!ent that a tr4t ! c(ear(' !nten$e$.
1--5
EFFECT OF DECLINATION :3
TR1STEE G Co4rt appo!nt ne& tr4tee
No tr4t ha(( fa!( %eca4e the tr4tee appo!nte$ $ec(!ne the $e!#nat!on) 4n(e
the contrar' ho4($ appear !n the !ntr4"ent cont!t4t!n# the tr4t.
1--/
:ENEFICIAR3IS ACCEPTANCE IS
NECESSAR3
5 "a' %e eBpre) !"p(!e$) or pre4"e$
TER2INATION of eBpre tr4t +<.
5 21T1AL AGREE2ENT %' ALL
PARTIES
5 E?PIRATION OF the TER2
5 F1LFILL2ENT OF RESOL1TOR3
CONDITION
5 RESCISSION OR ANN1L2ENT
5 LOSS +ph'!ca( (o or (e#a(
!"po!%!(!t'. OF S1:CECT 2ATTER OF
TR1ST
5 CO1RT ORDER
5 2ERGER
5 ACCO2PLISD2ENT OF P1RPOSE OF
TDE TR1ST
Acceptance %' the %enef!c!ar' ! necear'. Ne*erthe(e) !f the tr4t !"poe
no onero4 con$!t!on 4pon the %enef!c!ar') h! acceptance ha(( %e pre4"e$) !f
there ! no proof to the contrar'.
Chapter 3. I2PLIED TR1STS
1--;
TR1STS RECOGNIEED ONL3 IF NOT IN
CONFLICT 6J CC) Co$e of Co""erce)
The en4"erat!on of the fo((o&!n# cae of !"p(!e$ tr4t $oe not eBc(4$e other
eta%(!he$ %' the #enera( (a& of tr4t) %4t the (!"!tat!on (a!$ $o&n !n Art!c(e 1--,
ha(( %e app(!ca%(e.
Finals Provisions Reviewer OBLIGATIONS AND CONTRACTS
YSRefran 2&
RoC) 7 pec!a( (a&
I2PLIED TR1STS a are pec!f!e$ %' the
Co$e $onIt eBc(4$e other et. %' #en.
(a&) !nofar a the'Ire not !n conf(!ct &J the
CC 7 pec!a( (a&. Pro*a%(e %' ora(
e*!$ence
RES1LTING TR1STS +5.0 tr4t !nten$e$
%4t !neffect!*e a eBpre tr4t
1--<) 1-->) 1-51) 1-5,) 1-53
CONSTR1CTIVE TR1STS +-.
1-50) 1-5-) 1-55) 1-5/
1--<
No !"p(!e$ tr4t !f $oc eBpree $!fferent
!ntent
Re4(t!n# tr4t
There ! an !"p(!e$ tr4t &hen propert' ! o($) an$ the (e#a( etate ! #rante$ to
one part' %4t the pr!ce ! pa!$ %' another for the p4rpoe of ha*!n# the %enef!c!a(
!nteret of the propert'. The for"er ! the tr4tee) &h!(e the (atter ! the
%enef!c!ar'. Do&e*er) !f the peron to &ho" the t!t(e ! con*e'e$ ! a ch!($)
(e#!t!"ate or !((e#!t!"ate) of the one pa'!n# the pr!ce of the a(e) no tr4t !
!"p(!e$ %' (a&) !t %e!n# $!p4ta%(' pre4"e$ that there ! a #!ft !n fa*or of the
ch!($.
1-->
6DEN DONEE DOESNIT GET F1LL
O6NERSDIP OF :ENEFIT
Re4(t!n# tr4t
There ! a(o an !"p(!e$ tr4t &hen a $onat!on ! "a$e to a peron %4t !t appear
that a(tho4#h the (e#a( etate ! tran"!tte$ to the $onee) he ne*erthe(e !
e!ther to ha*e no %enef!c!a( !nteret or on(' a part thereof.
1-50
CONVE3ANCE OF PROPERT3 SO IT
2A3 SERVE AS SEC1RIT3
Contr4ct!*e tr4t
TR1ST RECEIPT0 ec4r!t' tranact!on
!nten$e$ to a!$ !n f!nanc!n# !"porter 7
reta!( $ea(er &ho $onIt ha*e 4ff!c!ent
f4n$ to f!nance !"portat!on or p4rchae
of "erchan$!e) an$ &ho "a' not %e a%(e
to acA4!re cre$!t eBcept thr4 4t!(!Fat!on) a
co((atera() of the "erchan$!e !"porte$ or
p4rchae$
If the pr!ce of a a(e of propert' ! (oane$ or pa!$ %' one peron for the %enef!t of
another an$ the con*e'ance ! "a$e to the (en$er or pa'or to ec4re the
pa'"ent of the $e%t) a tr4t ar!e %' operat!on of (a& !n fa*or of the peron to
&ho" the "one' ! (oane$ or for &ho" !t ! pa!$. The (atter "a' re$ee" the
propert' an$ co"pe( a con*e'ance thereof to h!".
1-51
6DEN TITLE TO LAND ISNIT TO
O6NERIS NA2E
Re4(t!n# tr4t
6hen (an$ pae %' 4cce!on to an' peron an$ he ca4e the (e#a( t!t(e to
%e p4t !n the na"e of another) a tr4t ! eta%(!he$ %' !"p(!cat!on of (a& for the
%enef!t of the tr4e o&ner.
1-5,
6DEN PROPERT3 IS IN TDE NA2E OF
ONL3 ONE OF TDE CO5:13ERS
Re4(t!n# tr4t
If t&o or "ore peron a#ree to p4rchae propert' an$ %' co""on conent the
(e#a( t!t(e ! ta9en !n the na"e of one of the" for the %enef!t of a(() a tr4t !
create$ %' force of (a& !n fa*or of the other !n proport!on to the !nteret of each.
1-53
6DEN A PERSON DECLARES DIS
INTENT TO DOLD PROPERT3 FOR
SO2EONE ELSE
Re4(t!n# tr4t
6hen propert' ! con*e'e$ to a peron !n re(!ance 4pon h! $ec(are$ !ntent!on to
ho($ !t for) or tranfer !t to another or the #rantor) there ! an !"p(!e$ tr4t !n fa*or
of the peron &hoe %enef!t ! conte"p(ate$.
1-5-
A:SOL1TE CONVE3ANCE 2ADE FOR
SEC1RIT3 P1RPOSE
Contr4ct!*e tr4t
If an a%o(4te con*e'ance of propert' ! "a$e !n or$er to ec4re the
perfor"ance of an o%(!#at!on of the #rantor to&ar$ the #rantee) a tr4t %' *!rt4e
of (a& ! eta%(!he$. If the f4(f!(("ent of the o%(!#at!on ! offere$ %' the #rantor
&hen !t %eco"e $4e) he "a' $e"an$ the recon*e'ance of the propert' to h!".
1-55
1SE OF TR1ST F1NDS
Contr4ct!*e tr4t
6hen an' tr4tee) #4ar$!an or other peron ho($!n# a f!$4c!ar' re(at!onh!p 4e
tr4t f4n$ for the p4rchae of propert' an$ ca4e the con*e'ance to %e "a$e
to h!" or to a th!r$ peron) a tr4t ! eta%(!he$ %' operat!on of (a& !n fa*or of
the peron to &ho" the f4n$ %e(on#.
1-5/ If propert' ! acA4!re$ thro4#h "!ta9e or fra4$) the peron o%ta!n!n# !t !) %'
Finals Provisions Reviewer OBLIGATIONS AND CONTRACTS
YSRefran 21
PROPERT3 AC@1IRED TDR1 2ISTAHE
OR FRA1D
Contr4ct!*e tr4t
force of (a&) con!$ere$ a tr4tee of an !"p(!e$ tr4t for the %enef!t of the peron
fro" &ho" the propert' co"e.
1-5;
PROOF OF I2PLIED TR1ST G app(!e
&hether propert' ! rea( or perona(
ORAL EVIDENCE FOR TR1ST 21ST
:E TR1ST6ORTD3
An !"p(!e$ tr4t "a' %e pro*e$ %' ora( e*!$ence.