OBLIGATIONS AND CONTRACTS must be observed to prevent one party from taking unfair advantage

2020 over the other party. (1159)

GENERAL PROVISIONS c. Quasi- contracts- juridical relation arising from lawful, voluntary and
unilateral acts. (1160)
ART 1156- An obligation is a juridical necessity to give, to do or not to do.
- It is a legal relation between one person and another whereby the - No consent (only presumptive consent), No contract but there is
latter is bound to the fulfillment of a prestation which the former obligation
may demand from him.
Civil obligation- has binding effect force in law. Negotiorum gestio- a person voluntary takes charge of the agency
Natural obligation- cannot be enforced by action. or management of the business/property of another without any
- Binding on the party who makes it in conscience and natural law. power or authority from the latter.
Not enforceable in the court of justice. -He shall be obliged to continue such agency or management until
the termination of the affair or its incidents
REQUISITES OF OBLIGATIONS Solutio indebiti- a person unduly delivers a thing trough mistake to
another who has no right to demand it.
1. Juridical or legal tie - binds the parties to the obligation, which may arise - Once a delivery has been made, the person who received the same
from bilateral or unilateral acts of persons. who has no authority to do so shall have the obligation to return it.
2. Active subject- known as the creditor or oblige
- Person who demands the fulfillment of obligation. d. Acts or omissions punished by law- Dual aspect of the crime.
3. Passive subject- known as the debtor or obligor However, a person who is not criminally liable may be civilly liable.
- From whom the obligation is juridically demandable.
4. Prestation or service- constitutes the object of obligation. GR: every person liable for a felony is also civilly liable.
- Must be determinate/ determinable ( if not it is considered illusory/ EXC: Treason, rebellion, illegal possession of firearm and gambling.
not capable of determination.
- For an obligation to be valid the prestation due must be: When a criminal action is instituted, the civil action for recovery is
a. Lawful impliedly instituted unless;
b. Accessible in money i. Expressly waives civil action
c. Possible ii. Reserves to file civil action separately (independent
civil action)
ART 1157- Sources of obligations -Civ action depends on the result of the crim action
iii. Institutes civil action prior criminal action
Establishes the obligation: -action to recover damages shall be suspended
- Civil and crim actions arising from the same offense may be
a. Law – can never be presumed (1158) instituted separately BUT after criminal action has commenced, the
civil action cannot be instituted until the final judgement for the
If the law merely recognizes or acknowledges the existence of the obligation, The Crim action.
act itself is the source and not the law - If the Civil action has been filed ahead of the criminal action, and
the criminal action is subsequently commenced. The civil action shall
b. Contracts- have the force of law between the contracting parties. be SUSPENDED at any stage before its final judgement until final
Governed primarily by the agreement of the parties. Good faith judgement of criminal action has been rendered.

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 If no judgement to Civ the same may be consolidated to crim upon b. Generic- object is designated merely by its class or genus without any
application to the court trying the crim action. In case of particular designation or physical segregation from all others of the same
consolidation, both actions shall be tried and decided jointly. class.
-If lost through Fortuitous event, debtor shall be liable for damages (can
- Extinction of penal action does not include extinction of civil action, never perish)
unless there’s declaration in final judgement that the fact arising the ART 1164- The creditor acquires a right to the fruits of the thing from the moment
civil action does not exist that the obligation to deliver such thing arises.
When does obligation to deliver arise?

e. Quasi- delicts/ Culpa Aquiliana (2176)- Tort LAW

An act or omission causes damage to another. QUASI CONTRACTS time designated by the prov
CRIM OFFENSES of the NCC or of special laws
Requisites to impugn liability QUASI DELICTS creating or regulating them.
a. Fault or negligence of the defendant
b. The damage suffered by plaintiff CONTRACTS – the moment of the perfection of the contract,
c. The relation cause and effect between the fault or negligence of the Unless there is stip to the contrary.
defendant and the damage incurred by the plaintiff.
Quasi- delicts Crimes Therefore, before the delivery of the thing the creditor has merely personal rights
1. Only private concerns 1. Affects public against the debtor, which is the right to ask for the delivery of the things a fruits.
interest
2. NCC- indemnification, 2. RPC- punishes/ Once it is delivered, then he acquires real right over the them which is enforceable
merely repairs the corrects the criminal act against the whole world.
damages
3. GR: dual liability 3. Criminal liab only Rights of the obligee/creditor over DETERMINATE thing
4. Punishable only if 4. all acts in which any kind
there’s law punishing of fault or negligence 1. Compel specific performance (1165)
it. intervenes. 2. Recover damages in case of breach of obligation (1170)
-delay, fraud, negligence, contravention of tenor thereof
NATURE AND EFFECT OF OBLIGATIONS The creditor may file for both rights simultaneously.

ART 1163- Every person obliged to give is also obliged to take care of it with Obligations of the obligor/debtor over DETERMINATE thing
DOAGFOAF, unless parties stipulated other standard.
1. Deliver the specific thing
Obligations to give: 2. Take care with proper doagfoaf
3. Deliver accessions and accessories
a. Determinate- the object is particularly designated or physically 4. Pay damages in case of breach of obligation
segregated from all others of the same class.
-If lost through Fortuitous event GR, debtor cannot be held liable for Rights of the obligee/creditor over GENERIC thing
damages.

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 1. To ask performance of the obligation ( not specific, but must be of equal 3. Event must be in character to render it impossible for the obligor to fulfill
quality/ same class/genus which must neither be superior or inferior his obligation in normal manner.
quality). (1246) 4. The obligor must be free from participation in the aggravation of the
2. To ask that obligation be complied with expense of the debtor. ( 1165) injury resulting to oblige/creditor.
3. To recover damages in case of breach in the obligation.(1170)
-delay, fraud, negligence, contravention of tenor thereof

Obligations of the obligor/debtor over GENERIC thing Exceptions:

1. Where such liability is expressly specified by law.
1. To deliver thing which must neither be superior nor inferior quality. 2. Declared by stipulation of the parties
2. To pay damages in case of breach in the obligation. 3. Nature of the obligation requires the assumption of risk. (knowledge of
risk).
ART 1168- Obligation not to do.
ART 1176- If the debtor is issued a receipt by the creditor and on the face of the
Have it undone at his expense receipt it is shown that the principal has been paid without reservation with
If he does it respect to interest, there arises a disputable presumption that the interest has also
Demand indemnity for damages been paid.

Obligation is fulfilled or realized so long as the forbidden is not done by the If the debtor is issued a receipt by the creditor acknowledging payment of a letter
obligor/debtor. installment of specified debt w/o any reservation with respect to prior installments,
there also arises a disputable presumption that such prior installments have
ART 1169- Delay, the non-fulfillment of obligation with respect to time. already been paid.
ART 1170- Those who in the performance of their obligations are guilty of F,N,D,CT
are liable for damages. ART 1177- Remedies of creditor to protect credit
ART 1171- Fraud or dolo consists in the conscious and intentional proposition to 1. Exhaust the property in possession of the debtor. (principal remedy) Art
evade the normal fulfillment of an obligation. 2236
ART 1172- Negligence or culpa 2. To be subrogated to all of the rights and actions of the debtor exc. Those
- May either be civil or criminal inherent to him (purely personal). In accion subrogatoria, the creditor
Civil negligence merely acts in the name and for the acct of the debtor after exhausting all
a. culpa contractual -fault or negligence of the obligor by virtue of which of the assets of the latter.
he is unable to perform his obligation arising from pre-existing contract 3. Impugn all the acts which the debtor may have done to defraud him.
b. culpa aquiliana (quasi- delicts) ART 1178- Transmissibility of rights.
ART 1173- the diligence required - GR: Rights of obligations or those rights acquired are transmissible.
ART 1174- Fortuitous event, could not be foreseen, was inevitable; Act of God. - EXC:
Force Majeure, arise from legitimate or illegitimate acts of persons other than the 1. Not transmissible by their very nature (purely personal right)
obligor, dependent upon human intervention (commotions ,riots, wars, robbery 2. There’s stipulation of the parties that they are not
etc.) transmissible. ( must be clearly established by the parties, not
implied)
Essential Conditions to avoid liability due to Fort event 3. Not transmissible by operation of law.
1. Event must be independent of the will of the obligor.
2. Event must be either unforeseeable or inevitable. DIFFERENT KINDS OF OBLIGATIONS

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 Mixed- fulfillment of the condition depends jointly upon the will of either
1. Pure, conditional, and with term or period (Art 1179-1198) one party to the obligation and partly upon chance and/or the will of a
2. Alternative and Facultative (Art 1199-1206) third person/others. (partly of D/C and partly of third person).
3. Joint and Solidary (Art 1207-1222) 3. Possible- when condition is capable of realization realization accdng to
4. Divisible and Indivisible (Art 1223-1225) law, public policy and good customs.
5. With and without a penal clause (Art 1226-1230) Impossible- not capable of realization accdng to law, public policy and
good customs.
Pure Obligation- The effectivity or extinguishment does not depend upon the -If the obli is divisible, the part not affected by the impossible or unlawful
fulfillment or nonfulfillment of a condition or upon the expiration of a term or condition shall be valid.
period. Its most distinctive characteristic is its immediate demandability. However, 4. Positive- involves performance of an act
the quality of immediate demandability is not infringed or violated when a Negative- involves the omission of an act (left undone)
reasonable period is granted for performance. 5. Divisible- Condition is susceptible of partial realization.
Indivisible- When the condition is not susceptible of partial realization.
Although the creditor can demand for the payment immediately, a reasonable 6. Conjunctive- When there are several conditions, all of them must be
period of grace should be given to the debtor within which to pay. realized.
Alternative- When there are several conditions, one of them must be
Conditional Obligation- The effectivity is subordinated to the fulfillment or non- realized.
fulfillment of a future and uncertain fact or event. 7. Express- The condition is stated properly.
What is a condition? Implied- condition is tacit.
Future and uncertain event upon which an obligation is subordinated or made to
depend. Reciprocal Obligation- created or established at the same time, out of same cause
REQ 1. Futurity 2. Uncertainty and which result in mutual relationships of creditor and debtor between parties

1. Suspensive- happening of an event gives rise to an obligation. When the Power to rescind or resolve obligations is implied in reciprocal ones. Rescission is
suspensive condition is fulfilled, the obligation arises or become effective. only valid if it resulted to substantial and fundamental breach as to defeat the
Rights are not yet acquired, there is hope or expectancy that they will object of the parties making the agreement. The injured party may choose between
soon be acquired. fulfillment and the rescission of obligation, with payment of damages in either case.
Fulfillment of Suspensive Condition (Art 1186) He may also seek rescission after he chose fulfillment and the latter should become
- The obligor must have actually prevented the obligee from impossible.
complying with the condition, and that such prevention must have The court is given discretionary power to fix a period within which the obligor in
been voluntary or willful in character. default may be permitted to comply with what is incumbent upon him. (not
applicable in Contract of Lease)
Resolutory- fulfillment of the condition results in the extinguishment of
rights arising out of an obligation. Rights are already acquired, but subject Obligations with a period ( Art 1193)
to the threat of extinction. - Demandability or extinguishment are subject to the expiration of a
2. Potestative- fulfillment of the condition depends upon the will of a party term or period.
to the obligation. (either debtor or creditor) Term/Period- an interval of time which exerts influence on an obligation as a
Casual- fulfillment of the condition depends upon chance or the will of consequence of a juridical act, either suspends its demandability or produces its
the third person. extinguishment.

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Art 1194- Loss, Deterioration or improvement of the thing before arrival of the day 1. When after the obligation has been contracted, he becomes insolvent,
certain, the ff shall be followed: unless there is guaranty or security for the debt
a. If the thing is lost without the fault of the debtor, the obligation shall be 2. He does not furnish to the creditor the guaranties or securities which he
extinguished. has promised;
b. If the thing is lost through the fault of the debtor , he shall be obliged to 3. If guaranty or security is impaired through fault of the debtor, he shall
pay damages; it is understood that the thing is lost when it perishes, or lose his right to the benefit of the period, but if impaired without his fault
goes out of commerce, or disappears in such a way that its existence in he retains his right.
unknown or it cannot be recovered. -If the guaranty or security disappears through any cause, even without
c. When the thing deteriorates without the fault of the debtor the any fault of debtor (disappear through fortuitous event) he shall lose his
impairment is to be borne by the creditor; right to benefit to a period.
d. If it deteriorates through the fault of the debtor, the creditor may choose
between the rescission of the obligation and its fulfillment, with However, in both cases he shall retain his right to the benefit of a period
indemnity for damages in either case; if he gives new guaranty or security which is equally satisfactory.
e. If the thing is improved by its nature, or by time, the improvement shall 4. The debtor violates any undertaking in consideration of which the
inure to the benefit of the creditor. creditor agreed to the period
f. If it is improved at the expense of the debtor, he shall have no other right 5. Debtor attempts to abscond
than that granted to the usufructuary.
Advanced Payment or delivery because he was unaware of the period or he Alternative and Facultative Obligations
believed that the obligation had become due and demandable. He may recover
what he has paid or delivered with fruits and interests. (Art 1195) Alternative- several objects or prestations are due, but it may be complied by the
delivery or performance by one of them.
Art 1996 – GR: A term or a period is established for the benefit of both debtor and - Right of choice pertain even to creditor and 3 rd person
creditor. The creditor cannot demand the performance of the obligation before the - loss or impossibility of the object without fault of debtor is necessary to
expiration of the designated period; neither can the debtor perform the obligation extinguish obligation.
before expiration of such period.
EXC: if it can be proved either from the tenor of the obligation or from other Facultative- only one object or prestation is agreed upon but the obligor may
circumstances that the period or term has been established in favor of the creditor render another object or the performance of another prestation in substitution.
or of the debtor. The GR of presumption will not apply. -Right of choice pertains to the debtor
- loss or impossibility of the object without fault of debtor is sufficient to extinguish
When may court fix term- the courts are empowered to fix duration of term or obligation.
period if: (Art 1197)
1. The obligation does not fix a period but from its nature and 1202- when among several prestations whereby the debtor is alternatively bound,
circumstances it can be inferred that a period was intended by the only one can be performed. The obligation becomes simple obligation because he
parties loses his right of choice altogether.
2. The duration of the period depends upon the will of the debtor
3. When the debtor binds himself to pay when his means permit him to do 1203- since the debtor’s choice is rendered impossible bec of creditor’s fault, his
so. only recourse is to rescind the contract with damages.

Instances where the debtor lose every right to make use of the term or period 1205- applicable only if right of choice belongs to debtor
(Art 1198)
Joint and Solidary Obligation

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 - GR: When there are several creditors, several debtors or several 2. Qualitative- can be materially divided into parts, but parts are not exactly
creditors and debtors the presumption is that the obligation is joint homogenous (partition of inheritance)
and not solidary. 3. Ideal or intellectual- Thing can only be separated into ideal or undivided
EXC: parts, not material parts, as in the
1. When the obligation expressly states that there is solidarity case of co-ownership.
2. Law requires solidarity Indivisible Obligation- not susceptible of partial performance.
3. Nature of obligation requires solidarity
Obligation with a penal clause
Joint Obligation
1. Several creditors ( entitled to demand proportionate part only) Penal clause- reparation or substitute for damages or as a punishment in case of
2. Several debtors (bound to render his proportionate part) breach of obligation.
3. Several creditors and debtors Nullity of penal clause does not affect the principal obligation.
If principal obligation is void, penal clause also void.

Solidary Obligation GR: Penalty is fixed by the contracting parties as a compensation or substitute for
1. Several creditors ( entitled to demand entire compliance) damages in case of breach of principal obligation.
2. Several debtors (bound to render entire compliance) EXC:
3. Several creditors and debtors 1. There’s stipulation to the contrary
2. Obligor is sued for refusal to pay the agreed penalty.
Art 1209- Joint Indivisible Obligation (midway between joint and solidary) 3. Obligor is guilty of fraud.
1. Creditors can’t act as representation of the others
2. No debtor can be compelled to answer for the liability of others. Penalty is demandable only when it is due.

Effect of breach of debtor- the debtor who’s incapable of fulfilling his When penalty may be reduced:
proportionate part shall be liable for damages. 1. Principal obligation has been partly complied
Thus, those who are ready to fulfill their part shall not contribute to the indemnity 2. Principal obligation has been irregularly complied
beyond their proportionate part. 3. Penalty is iniquitous or unconscionable even if there has been no
performance
Insolvency of one of the debtors- Others shall not be liable for his share.
EXTINGUISHMENT OF OBLIGATIONS
The death of the creditor or debtor does not extinguish the obligation, Obligations
are transmissible exc if the law prohibits so. ART 1231- Diff modes of extinguishing obligations.
1. Payment or performance- delivery of money and performance of an
Divisible and Indivisible Obligations obligation. Fulfillment of the obligation either voluntarily or involuntarily.
2. Loss of the thing due
Divisible Obligation- if separated into parts , its essence is not changed or its value 3. Condonation or remission of the debt
is not decreased. And if they are put again together it shall be back to its prior 4. Confusion or merger of the creditor and debtor
condition. 5. Compensation
Three kinds: 6. Novation
1. Quantitative- can be materially divided into parts, such are homogenous - Others.. Annulment, Rescission, Fulfillment of resolutory condition,
to each other. Prescription

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ART 1233- Obligation to do shall be understood to have been performed when the - By cred conduct, the debtor has been led to believe that the 3 rd
obligor has completely rendered service. person had authority to receive payment.
Obligation not to do shall be understood to have been complied with when the 2. Possessor of credit, provided that it was made in good faith.
obligor has completely refrained from doing that which he had obligated himself
not to do. ART 1245- Dacion en pago/ Dation in payment
- Property is alienated to the creditor in satisfaction of debt in money,
EXC: governed by law on sales.
- A special mode of payment. The debtor offers another thing to the
1. Substantially performed in good faith. ( obligor may recover as if creditor who accepts it as equivalent of payment of an outstanding
there’s complete fulfillment). obligation.
2.Obligee accepts the performance with knowledge of its incompleteness - Alienation must fully extinguish the debt.
and irregularities without protest or objection.
ART 1249- Payment of debts shall be made in the currency in the PH and if not
ART 1236- GR: 3rd person cannot compel creditor to accept payment of possible, the currency which is legal tender in the PH.
performance of obligation.
Legal Tender- all notes and coins issued by the New Central Bank. (PN and other
EXC: 1. 3rd person has interest in the fulfillment of obligation. Neg Inst are not legal tender) Exception, when PN or other nego inst have been
2. There’s stipulation to the contrary, the creditor waives his right to cashed or through the fault of the creditor they have been impaired.
refuse to deal with strangers to the obligation
ART 1250 – In case of extraordinary deflation/ inflation the value of the currency
Remedies avail to 3rd person who paid obligation at the time of the establishment of the obligation shall be the basis of payment,
1. Recover from debtor the entire amount unless there is stipulation to the contrary.
2. Subrogated to all of the rights of the creditor
- If payment is done without the knowledge or against the will of the Extraordinary deflation/ inflation
debtor, his remedy is only to recover inly the amount he paid which 1. unusual or beyond common fluctuation in the value of currency
is only beneficial to the debtor. 2. which the parties could not have possibly foreseen
Gratuitous payments- payment made by 3rd person who does not intend to be 3. manifestly beyond the contemplation of the parties at the time of
reimbursed. The presumption arises that such payment is a donation. (Debtor’s establishment of obligation.
consent is necessary) Rules on ordinary donation shall apply.
ART 1251- Payment shall be made in the place designated in the obligation.
ART 1240- whom payment shall be made If debtor changes his domicile in BAD FAITH or AFTER DELAY, additional expenses
shall be borne by him.
GR:
1. The person whose favor the obligation has been constituted No express stipulation.
2. His successor in interest (assignee) 1. DETERMINATE THING, place where the thing might be at the time the
3. Any person authorized to receive it (agent) obligation was constituted.
EXC: If payment made to those NOT enumerated 2. In any other case. Domicile of the debtor
1. Third person, provided that it beneficial to the creditor.
BENEFIT IS PRESUMED: DIFFERENT SPECIAL FORMS OF PAYMENT
- If after payment, the 3rd person acquires cred rights
- Creditor ratifies payment 1. Application of Payment

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 - Designation of the debt to which the payment must be applied when b. He is incapacitated to receive the payment at the time it is due
the debtor has several obligations of the same kind in favor of the c. Without just cause he refuses to give a receipt
same creditor d. Two or more persons claim the right to collect
e. Title of the obligation has been lost
REQUISITES EFFECTS
a. Only one debtor and one creditor a. If creditor accepts the thing deposited without contesting the validity of
b. Two or more debts consignation, the obligation is extinguished or cancelled
c. All of the debts must be due b. If creditor contest the validity the it shall result to litigation. Same is true
d. Amount paid by debtor must not be sufficient to cover the total if creditor is absent, not interested or unknown.
amount of all the debts
2. Dation in payment ART 1262-69
3. Payment by cessation
- Cessation or assignment whereby the debtor abandons all his Loss of the thing due – thing which constitutes the object of the obligation
property for the benefit of his creditors in order that from the perishes, or goes out of commerce of man, or disappears in such a way that its
proceeds thereof the latter may obtain payment of their credits. existence is unknown or it cannot be recovered.
- State of partial and relative insolvency - Impossibility of compliance with the obligation
- Release him for net proceeds of the things ceded or assigned - Impossibility of performance
Insolvent- a person is an insolvent if he cannot pay his debt when it become due. REQUISITES
a. The thing lost must be determinate thing is lost without fault of debtor. If
REQUISITES it is lost with fault of debtor, the obligation is not extinguished, thus
a. Plurality of debts debtor needs to indemnify creditor for damages.
b. Partial or relative insolvency of the debtor b. The thing is lost before the debtor has incurred in delay. If the thing is lost
c. Acceptance of the cessation by the creditors. after the debtor has already incurred in delay, the rule is that such debtor
can still be held liable for indemnity for damages.
4. Tender of payment and consignation
- Deposit of the object of the obligation in a competent court in ART 1264- Partial Loss, whether or not its partial loss or destruction of the thing is
accordance with the rules prescribed by law after refusal or inability of such importance that it would be tantamount to complete loss or destruction,
of the creditor to accept the tender of payment shall depend upon the sound discretion of the court.

REQUISITES ART 1266- If thing is debtor’s possession, there arises a disputable presumption
a. Debt due that the loss was his fault.
b. Consignation is made either because creditor refused to accept
payment with just cause or because any of the cause stated by law Condonation or remission of the debt
for effective consignation without prev tender of payment exists - Remission is an act of liberality by virtue of which the obligee,
c. Prev notice of consignation had been given to the persons interested without receiving any price or equivalent, renounces the
in the fulfillment of the obligation enforcement of the obligation, as a result of which it is extinguished
d. The thing or amount due had been placed at the disposal of judicial in its entirety or part.
authority. - Compliance with the rule of donation
EXC to rule that consignation shall effect payment - If mortis causa, formalities of a will
a. Creditor is unknown or absent or does not appear at the place of - If not complied with both then not express
payment. REQUISITES

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 a. Must be gratuitous - Although it extinguishes an obligation, it also gives birth to another
b. It must be accepted by obligor one in replacement of the old.
c. Obligation must be demandable
- May be partial or total, express or implied REQUISITES

Confusion or Merger of rights a. A previous valid obligation

-The meeting in one and the same person of the qualities of creditor and b. Agreement of the parties to new obligation
debtor are merged in one and the same person. c. Extinguishment of old obligation
REQUISITES d. Validity of new obligation
a. Characters of creditor and debtor must be in same person
b. It must take place in the person of either the principal creditor or NOTES:
principal debtor
c. That it must be complete and definite

Effect of revocation of confusion

- The original obligation as a general rule is recreated in the same
form and under the same condition in which it was found before the
merger took place. Contracts (Lecture)

ART 1278-1290 Compensation -Meeting of minds of two persons to give something or render some
- Amount of debt can be computed by simple mathematical service.
computation. -One of the sources of obligation, not mode of acquiring ownership in
COS no transfer of ownership until the thing is delivered
REQUISITES
a. There must be 2 parties, who in their own right are principal debtors and 5 Characteristics of Contracts
principal creditors of each other 1. 1159 obligatory force of contract. Obligations arising from
b. Both debt must consist in money, or if the things due are fungibles contract have the force of the law between the contracting
(consumable) they must be the same kind or quality parties.
c. Both debts must be due 2. 1306 principle of autonomy of contracts. Freedom of the
d. Both debts must be liquidated and demandable parties to enter into contracts and to provide stipulations that
e. There must be no retention or controversy commenced by 3rd persons will benefit them.
over either of the debts and communicated in due time to the debtor. 3. 1308 the principle of mutuality of contracts. Contracts must
- Not attached, there must be no claim treat the parties equally and cannot be discretionary on one
f. The compensation must not be prohibited by law. party and mandatory on the other.
EXC: 1309 determination of performance may be left on the 3rd
ART 1291 Novation persons
- The substitution or change of an obligation by another, resulting in Exc to exc: 1310
its extinguishment or modification, either by changing its object or 4. 1311 principle of relativity of contracts. Contracts take effect
principal conditions or by substituting another in place of the only between the contracting parties, their assigns and heirs.
debtor, by subrogating a 3rd person in rights of the creditor. Exc: if the right is not assignable or transferable by its nature,
stipulation or by provision of law and 1311

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 . 1324- The offer may be withdrawn anytime by the offeror, even it is offered for
certain period, and the offeror cannot be held liable. EXC: there is an option
Heir can only be liable to the extent of the value you receive contract (option price, money) Then offeror cannot withdraw it until period
from the deceased. Cannot be liable beyond the value he expired.
received.
Earnest money- forms part of the price. Proves perfection of contracts.
1311 Stipulation pour atrui Option money- does not prove perfection of contract and does not form part of
the price, separate consideration for separate contract.
1312 Contract creating real rights. A right over a thing without
a definite passive subj against whom it may be enforced and so 1325- 26 are not offers, the person may either accept or reject.
it is enforceable against the whole world. Enforceable against
anyone. Consent

1381- defrauding creditors Vices of consent (voidable)

1. Vices of cognition- consent must be intelligent, free and true.
1314- third persons who induces another to violate contract a. Capacity
b. Mistake (fact not of law)
1315 principle of consensuality of contracts. -mistake with respect to the object of the contract
-principal condition, cause (the reason why the parties entered into
Essential Req of Contracts contracts)
- mistake as to the identity
1. Consent 1319- it is in the mind and it is manifested by the Mistake of fact- (def)
fact that the offer and acceptance have met together with c. Fraud/ dolo- 2 general kinds o fraud
the two other req. Dolo causante- vitiate consent. (voidable) The party guilty of fraud
There are 2 sit where consent may result to perfection of will be liable for damages.
contract Incidental fraud- does not vitiate consent, the party have actually
a. The 2 parties are facing each other. decided to enter into contract
b. The parties are not physically facing each other, there
comes a lot of complications. The rule on 2nd ph shall 2. Vices of volition
be applied. The perfection of contract takes place a. Violence Duress
when the offeror learns the acceptance of the b. Intimidation- internal threat
offeree. c. Undue influence- the person is trying to replace the free will of
-Therefore prior to the knowledge of acceptance another person.
offeror may withdraw.
-Offer is rejected Absolute Simulation- there’s absent of consent. (void)
- Acceptance is varied by a qualified acceptance. Relatively simulated-
(effect of rejecting the offer) counter offer
- death, civ inter, insanity, insolvency prior perfection Object of Contracts

To be valid the offer must be certain. 1. Future things- things have yet grow, subj to suspensive condition,
includes hope or expectancy provided not a vain hope or expectancy.

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ASERON,KENTFHIL MAE R.
OBLICON 2020
 EXC: Future inheritance bec it is prohibited by law and public policy.
2. Services- if contrary to law, pp, po, morals not valid
3. Impossibility-
4. Determinate-

Form of contract

Form is not required for the contracts to be obligatory.

Exc: statute of frauds, law req a form (marriage settlement)

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ASERON,KENTFHIL MAE R.
OBLICON 2020