Uribe Notes

MOTO-Q NOTES
Morales, Occiano, Tongcua, Occiano, Quitain
Atty. Crisostomo Uribe

Notes in Civil Law Review 2 (6 8es
I. OBLIGATIONS
20% Midterm 30% quizzes and recitations 50% finals
76 Su$$ose a $romissor% note was made6 1/2/93 I ro!ise to ay " #1$ A ,s it civil or natural5 (6 ,t ma% "e civil or natural #ivil& within 90 %ears $rescri$tive $eriod; natural&"e%ond ten %ears 76 ,f it was made "e%ond the $rescri$tive $eriod2 ma% it "e considered a civil o"ligation5 (6 8es ,f $rescri$tive $eriod was interru$ted or if no written demand was made )nl% if demanded within the $rescri$tive $eriod ma% it "e due and demanda"le 76 ,s consent one of the essential elements of o"ligations5 (6 -) ,t is true onl% with contracts Essential elements of obligation: 9 (ctive Su"'ect creditor0o"ligee 76 ,s an% :ind of $erson su"'ect to o"ligation5 (6 8es -ot onl% -atural $ersons "ut also 'uridical entities0$ersons 2 /restation to give2 to do2 or not to do 76 ,s it a thing5 (6 -o ,t is the $articular conduct of the de"tor 3 ;uridical tie vinculum 'uris that which "inds the $arties
Digest Sales; starting with Sanchez v !igos - 2 quizzes in o"licon - #ertification that the digest is com$lete and is in %our own handwriting & from 2 classmates - & cases $enned "% 'ustice (zcuna & 2 quizzes )*+,#)- .olentino Sales *aviera /artnershi$ *autista #ommon +aw general and ordinar% law of a countr%0 communit%; unwritten law founded on memorial usage and natural 'ustice and reason /assive solidarit% not alwa%s one de"tor; ma%0 ma% have 2 or more de"tors0creditors 1hen the fulfillment of the condition de$ends u$on the sole will of the de"tor2 the conditional o"ligation shall "e void this is true onl% in resolutor% conditions (lternative conditions sim$le when choice has alread% "een communicated3 ,f not communicated there is no consent 4acultative conditions is the choice alwa%s with the creditor5 )"ligations6 Art. 1156. An obligation is a juridical necessity to give, to do or not to do. (n) it is a civil o"ligation "ecause of the $hrase 'uridical necessit%
76 1hen can there "e a tie5 1hat creates a tie5 (6 when there is an e<istence of the source of o"ligation Sources of Obligation: Art. 115%. &bligations arise 'ro!(
76 Does a creditor have a right under natural o"ligations5
BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO
MOTO-Q NOTES
Notes in Civil Law Review 2 Art. 216%. 70en t0roug0 an accident or ot0er cause a erson is injured or beco!es seriously ill, and 0e is treated (2) ,ontracts+ or 0el ed *0ile 0e is not in a condition to give consent to a contract, 0e s0all (3) -uasi.contracts+ be liable to ay 'or t0e services o' t0e 0ysician or ot0er erson aiding 0i!, (/) Acts or o!issions unis0ed unless t0e service 0as been rendered by la*+ and out o' ure generosity. (1) )a*+ (5) -uasi.delicts. (1129a) QUASI CONT ACTS: =inds6 9 -ominate6 a > solutio inde"iti " > -egotiorum gestio 2 ,nnominate (rticles 29?@&29A5 34,5I&6 3. . &t0er -uasi.,ontracts Art. 216/. 70en, *it0out t0e 8no*ledge o' t0e erson obliged to give su ort, it is given by a stranger, t0e latter s0all 0ave a rig0t to clai! t0e sa!e 'ro! t0e 'or!er, unless it a ears t0at 0e gave it out o' iety and *it0out intention o' being re aid. (129/a) Art. 2165. 70en 'uneral e9 enses are borne by a t0ird erson, *it0out t0e 8no*ledge o' t0ose relatives *0o *ere obliged to give su ort to t0e deceased, said relatives s0all rei!burse t0e t0ird erson, s0ould t0e latter clai! rei!burse!ent. (129/a) Art. 2166. 70en t0e erson obliged to su ort an or 0an, or an insane or ot0er indigent erson unjustly re'uses to give su ort to t0e latter, any t0ird erson !ay 'urnis0 su ort to t0e needy individual, *it0 rig0t o' rei!burse!ent 'ro! t0e erson obliged to give su ort. 50e rovisions o' t0is article a ly *0en t0e 'at0er or !ot0er o' a c0ild under eig0teen years o' age unjustly re'uses to su ort 0i!. Art. 2162. 70en during a 'ire, 'lood, stor!, or ot0er cala!ity, ro erty is saved 'ro! destruction by anot0er erson *it0out t0e 8no*ledge o' t0e o*ner, t0e latter is bound to ay t0e 'or!er just co! ensation. Art. 2169. 70en t0e govern!ent, u on t0e 'ailure o' any erson to co! ly *it0 0ealt0 or sa'ety regulations concerning ro erty, underta8es to do t0e necessary *or8, even over 0is objection, 0e s0all be liable to ay t0e e9 enses. Art. 21%1. 70en by accident or ot0er 'ortuitous event, !ovables se arately ertaining to t*o or !ore ersons are co!!ingled or con'used, t0e rules on co.o*ners0i s0all be a licable. Art. 21%1. 50e rig0ts and obligations o' t0e 'inder o' lost ersonal ro erty s0all be governed by Articles %19 and %21. Art. 21%2. 50e rig0t o' every ossessor in good 'ait0 to rei!burse!ent 'or necessary and use'ul e9 enses is governed by Article 5/6. Art. 21%3. 70en a t0ird erson, *it0out t0e 8no*ledge o' t0e debtor, ays t0e debt, t0e rig0ts o' t0e 'or!er are governed by Articles 1236 and 123%. Art. 21%/. 70en in a s!all co!!unity a nationality o' t0e in0abitants o' age decide u on a !easure 'or rotection against la*lessness, 'ire, 'lood, stor! or ot0er cala!ity, any one *0o objects to t0e lan and re'uses to
MOTO-Q NOTES
Notes in Civil Law Review 2 contribute to t0e e9 enses but is bene'ited by t0e roject as e9ecuted s0all be liable to ay 0is s0are o' said 76 ,s innominate e9 enses. e<clusive5 Art. 21%5. Any erson *0o constrained to ay t0e ta9es anot0er s0all be entitled rei!burse!ent 'ro! t0e latter. is o' to
quasi
contract
(6 -o (cts or omissions $unisha"le "% law &F crimes and delicts onl% to the !/# felon% is limited
certain lawful2 unilateral act must concur 4or negotiorum gestio& there must "e a"andonment *(! BC(M 7DBS.,)-6 ( "ought a $ac: of cigar /225 00 Ee $aid /3A5 00 relationshi$ was created5 (6 7uasi contract; solutio inde"iti 76 ( had a fish$ond +awless events forced to go to Manila and then Buro$e *2 who has in the "usiness of "u%ing and selling fish2 realized that it was harvest time2 harvested the fish and sold them to C * "orrowed mone% from 8 in order to "u% the fingerlings a 1hat ;uridical relationshi$ was created "etween ( and *5 worth 1hat
!equisites for it to arise6 .here must "e a conviction "e%ond reasona"le dou"t /roof
76 ,s there a crime where there is no civil lia"ilit%5 (6 ;ustif%ing #ircumstances QUASI !ELICT: 7uasi&delict G cul$a aquiliana & it is not cul$a e<tra contractual or torts #ul$a e<tra contractual includes6 9 2 contractual B<tra contractual includes other sources under 995A
(6 -egotiorum gestio " 1hat 'uridical relationshi$ was created "% ( with res$ect to * and C5
#ineda *ould say t0at torts is not :uasi.delict because torts include !alicious and negligent acts. Atty. ;ribe does not agree *it0 0i!. 5orts is t0e sa!e as :uasi delict Art. 21%%. <es onsibility 'or 'ault or negligence under t0e receding article is entirely se arate and distinct 'ro! t0e civil liability arising 'ro! negligence under t0e #enal ,ode. "ut t0e lainti'' cannot recover da!ages t*ice 'or t0e sa!e act or o!ission o' t0e de'endant. (n)
(6 to remit the sale of fish sold to C c ( with res$ect to * and 85
(6 ( must $a% the loan to * "ecause it was for the "enefit of ( d ,f ( ratified the acts of *2 what will ha$$en5
(6 ( shall "e inde"ted to *
MOTO-Q NOTES
#angco v A?I> -( 70at de'enses>
Notes in Civil Law Review 2 Manila !ailroad H9I /hil "ul# $% &''$ ($)$)'$* #om$liance of )"ligation; s$ecific o"ligation of the de"tor; different :inds of o"ligation 'oint solidar% ;ul% 90 and 2I &ma:e u$ class #om$liance determine the :ind of o"ligation; determine the $ur$ose *(! BC(M 7DBS.,)-6 .here was an o"ligation on the $art of ( to deliver mangoes on 'ul% 92 200?2 ? months after agreement with * )ne month "efore deliver%2 ( sold to the fruit to C #an * recover the fruits from C5 (6 -o * has no real rights over the fruits since it was not delivered to him =,-DS )4 )*+,J(.,)-S (S .) /B!4B#.,)- (-D BC.,-JD,SEMB-.6 76 $romissor% note6 1/2/93 I ro!ise to ay " #1$ 1hat :ind of o"ligation5 (
*ere
t0e
de'endant=s
A( lainti'' *as negligent+ de'endant e9ercised due diligence in selecting its e! loyees. (not a good de'ense. It is raised only in :uasi delict.$<<?s liability *as based on contract o' carriage.) -( 7as it t0e negligence o' ,angco> A( 6o. t0e ro9i!ate cause *as t0e bul8 o' *ater!elon. It *as di!ly lig0ted. 50ere is negligence considering t0e erson, ti!e and lace. Jutierrez v Jutierrez H5? /hil 9AA> . t0ere *ere 5 de'endants. 3 *ere 0eld liable. 50e !ot0er and c0ild *ere not 0eld liable. 76 ( o"liged himself the following to *6 a to give a refrigerator2 model 923; " an 9I inch .K set; c fi< $iano of * ( failed to $erform an% 1hat are the remedies5 (6 Determine first the nature of the thing to "e delivered whether determinate or indeterminate6 a " c determinate0s$ecificHref>& s$ecific $erformance $lus damages Jeneric H.K> to have another $erson $erform at the e<$ense of the de"tor Service Hto do> damages;involuntar% servitude
(6 /ure )"ligation even if sus$ensive or $ostestative condition2 the de"tor ma% "e com$elled if there is a $re e<isting condition ,m$ossi"le #onditions6 ,f with a term shall annul condition ,f without a term it is void ,f negative im$ossi"le valid condition
Jeneric de$ends on the $ur$ose and circumstances
Art. 112%. 50e e''ects o' a conditional obligation to give, once t0e condition 0as been 'ul'illed, s0all retroact to t0e day o' t0e constitution o' t0e obligation. 6evert0eless, *0en t0e
MOTO-Q NOTES
Notes in Civil Law Review 2 obligation i! oses reci rocal (6 1hen he loses the right to ma:e restations u on t0e arties, t0e 'ruits use of the $eriod ,f de"tor has and interests during t0e endency o' $romised2 in this case the de"tor did t0e condition s0all be dee!ed to 0ave not $romise an%thing been !utually co! ensated. I' t0e obligation is unilateral, t0e debtor 76 ,f insolvent2 will he lose his right5 s0all a ro riate t0e 'ruits and interests received, unless 'ro! t0e (6 -o2 if he furnishes a guarant% which nature and circu!stances o' t0e is acce$ta"le to the creditor obligation it s0ould be in'erred t0at t0e intention o' t0e erson 76 Eow will he "e insolvent5 constituting t0e sa!e *as di''erent. !eci$rocal sale Dnilateral donation 76 ( o"liged himself to * to deliver a thing on Se$tem"er 20052 after the% agreed in ;anuar% 2003 ( however delivered it to in ($ril of 2003 1ho has a "etter right5 1hat a"out #5 (6 * has a "etter right # will have a "etter right if he acted in good faith L with regard to im$rovements2 if voluntaril% made "% the de"tor2 no other right than usufructuar% *(! BC(M 7DBS.,)-6 76 ( "orrowed /9M from * $a%a"le at the end of the %ear; ( delivered a car as sti$ulated2 * ma% use the car )n (ugust 92 ( offered to $a% /9M2 can * "e com$elled to acce$t /9M5 (6 ,t de$ends on whose "enefit the term was constituted ,f for the "enefit of "oth $arties2 there ma% "e no com$ulsion ,f for the "enefit of the de"tor2 creditor ma% "e com$elled to acce$t ,nstances for the "enefit of the de"tor6 9 on or "efore 2 -ot later than 3 within MMM mos 76 ( "orrowed from * /9M2 $a%a"le at the end of the %ear (ugust 92 creditor demanded a mortgage constituted on the house of ( -o mortgage was delivered )n (ug 9?2 can creditor demand5 1hen5 (6 "% giving one or more of his $ro$ert% 76 1hat if he has no assets5 (6 third $erson ma% guarantee Art. 1192. 50e debtor s0all lose every rig0t to !a8e use o' t0e eriod( (1) 70en a'ter t0e obligation 0as been contracted, 0e beco!es insolvent, unless 0e gives a guaranty or security 'or t0e debt+ (2) 70en 0e does not 'urnis0 to t0e creditor t0e guaranties or securities *0ic0 0e 0as ro!ised+ (3) 70en by 0is o*n acts 0e 0as i! aired said guaranties or securities a'ter t0eir establis0!ent, and *0en t0roug0 a 'ortuitous event t0ey disa ear, unless 0e i!!ediately gives ne* ones e:ually satis'actory+ (/) 70en t0e debtor violates any underta8ing, in consideration o' *0ic0 t0e creditor agreed to t0e eriod+ (5) 70en t0e debtor atte! ts to abscond. (1129a)
MOTO-Q NOTES
Notes in Civil Law Review 2 +im v /eo$le H933 S#!( 333> (rt 9202 .he de"tor shall lose the right of choice when among the $restations where"% he is alternativel% .@ !erely an agent+ 119% is not "ound2 onl% one is $ractica"le H993@> a licable. #eriod Aas soon as soldB Millares v Eernando H959 S#!( @I@> .@ 119% is not a licable (rt 9203 ,f through the creditorOs acts the de"tor cannot ma:e a choice according to the terms of the o"ligation2 the latter ma% rescind the contract with damages Hn> (rt 920@ .he creditor shall have a right to indemnit% for damages when2 through the fault of the de"tor2 all the things which are alternativel% the o"'ect of the o"ligation have "een lost2 or the com$liance of the o"ligation has "ecome im$ossi"le .he indemnit% shall "e fi<ed ta:ing as a "asis the value of the last thing which disa$$eared2 or that of the service which last "ecame im$ossi"le Damages other than the value of the last thing or service ma% also "e awarded H9935a> (rt 9205 1hen the choice has "een e<$ressl% given to the creditor2 the o"ligation shall cease to "e alternative from the da% when the selection has "een communicated to the de"tor Dntil then the res$onsi"ilit% of the de"tor shall "e governed "% the following rules6 H9> ,f one of the things is lost through a fortuitous event2 he shall $erform the o"ligation "% delivering that which the creditor should choose from among the remainder2 or that which remains if onl% one su"sists; H2> ,f the loss of one of the things occurs through the fault of the de"tor2 the creditor ma% claim an% of those su"sisting2 or the $rice of that which2 through the fault of the former2
Art. 119%. I' t0e obligation does not 'i9 a eriod, but 'ro! its nature and t0e circu!stances it can be in'erred t0at a eriod *as intended, t0e courts !ay 'i9 t0e duration t0ereo'. 50e courts s0all also 'i9 t0e duration o' t0e eriod *0en it de ends u on t0e *ill o' t0e debtor. In every case, t0e courts s0all deter!ine suc0 eriod as !ay under t0e circu!stances 0ave been robably conte! lated by t0e arties. &nce 'i9ed by t0e courts, t0e eriod cannot be c0anged by t0e!. (1122a) AS TO + ESTATION: +LU ALIT, O-
SB#.,)- 3 & (lternative )"ligations (rt 99NN ( $erson alternativel% "ound "% different $restations shall com$letel% $erform one of them .he creditor cannot "e com$elled to receive $art of one and $art of the other underta:ing H9939> (rt 9200 .he right of choice "elongs to the de"tor2 unless it has "een e<$ressl% granted to the creditor .he de"tor shall have no right to choose those $restations which are im$ossi"le2 unlawful or which could not have "een the o"'ect of the o"ligation H9932> (rt 9209 .he choice shall $roduce no effect e<ce$t from the time it has "een communicated H9933>
MOTO-Q NOTES
Notes in Civil Law Review 2 has disa$$eared2 with a right to from the da% when the selection has damages; "een communicated to the de"tor H3> ,f all the things are lost through the fault of the de"tor2 the choice "% the creditor shall fall u$on the $rice of an% one of them2 also with indemnit% for damages .he same rules shall "e a$$lied to o"ligations to do or not to do in case one2 some or all of the $restations should "ecome im$ossi"le H993?a> (rt 920? 1hen onl% one $restation has "een agreed u$on2 "ut the o"ligor ma% render another in su"stitution2 the o"ligation is called facultative .he loss or deterioration of the thing intended as a su"stitute2 through the negligence of the o"ligor2 does not render him lia"le *ut once the su"stitution has "een made2 the o"ligor is lia"le for the loss of the su"stitute on account of his dela%2 negligence or fraud Hn> L choice must "e communicated Hrelevant if one of the $restation was lost> 9 if fault of de"tor communication de"tor is lia"le after
2 if loss ha$$ened "efore communication due to fortuitous event de"tor ma% still choose from the remaining ,4 4(D+. 1(S DDB .) )-B )4 .EB /(!.,BS; M(=B ( D,S.,-#.,)-2 1E) E(S (. 4(D+. (-D 1E) E(S .EB #E),#B6 9 #hoice of de"tor; fault of creditor & de"tor ma% choose from those remaining or de"tor ma% o$t to rescind the o"ligation 2 #hoice of creditor; fault of de"tor & creditor ma% o$t to choose from those remaining or that value of which was lost $lus damages
a > alternative " > facultative c > con'unctive 2 $restations which com$lied with B<am$le6 , $romise Hcon'unctive> , $romise Halternative> ,n con'unctive choice is made to
or more shall "e
B<am$le6 #hoice of de"tor2 first $restations were lost due to his fault2 onl% one is left and %et was lost through fortuitous event & de"tor canPt "e held lia"le
MM2MM2and
MMM
to
MM2MM2or
MMM
,n alternative2 if all $restations were lost due to the fault of the de"tor5 de$ends on who has the right to choose6 9 2 if de"tor6 value of last $restation $lus damages if creditorPs choice6 an%thing of those lost $lus damages
and
facultative2
no
,n alternative2 choice is with de"tor unless6 (rt 9205 1hen the choice has "een e<$ressl% given to the creditor2 the o"ligation shall cease to "e alternative
MOTO-Q NOTES
Notes in Civil Law Review 2 ,n 4acultative6 involves 2 or more Art. 1212. I' 'ro! t0e la*, or t0e $restations "ut onl% one is due nature or t0e *ording o' t0e obligations to *0ic0 t0e receding article re'ers t0e contrary does not - if one is lost2 de$ends if there a ear, t0e credit or debt s0all be was a communication resu!ed to be divided into as !any s0ares as t0ere are creditors or .olentino6 if de"tor destro%s the debtors, t0e credits or debts being su"stitute2 it doesnPt matter considered distinct 'ro! one anot0er, subject to t0e <ules o' ,ourt 76 1hat if de"tor refuses to ma:e governing t0e !ulti licity o' suits. a choice5 (1132a) (6 #reditor file an action in the alternative 4inal e<ams0 as:ed> midterms Hmight "e Art. 1219. I' t0e division is i! ossible, t0e rig0t o' t0e creditors !ay be rejudiced only by t0eir collective acts, and t0e debt can be en'orced only by roceeding against all t0e debtors. I' one o' t0e latter s0ould be insolvent, t0e ot0ers s0all not be liable 'or 0is s0are. (1139) Art. 1211. 50e indivisibility o' an obligation does not necessarily give rise to solidarity. 6or does solidarity o' itsel' i! ly indivisibility. (n) Art. 1211. 3olidarity !ay e9ist alt0oug0 t0e creditors and t0e debtors !ay not be bound in t0e sa!e !anner and by t0e sa!e eriods and conditions. (11/1) Art. 1212. 4ac0 one o' t0e solidary creditors !ay do *0atever !ay be use'ul to t0e ot0ers, but not anyt0ing *0ic0 !ay be rejudicial to t0e latter. (11/1a) Art. 1213. A solidary creditor cannot assign 0is rig0ts *it0out t0e consent o' t0e ot0ers. (n) Art. 121/. 50e debtor !ay ay any one o' t0e solidary creditors+ but i' any de!and, judicial or e9trajudicial, 0as been !ade by one o' t0e!, ay!ent s0ould be !ade to 0i!. (11/2a) Art. 1215. 6ovation, co! ensation, con'usion or re!ission o' t0e debt, !ade by any o' t0e solidary creditors or *it0 any o' t0e solidary debtors,
,n ;ul% 92 20032 ( and * entered into an agreement 1hen it fell due2 * failed to fulfill and was in dela% HSir said that he is not in dela%2 "ecause there was no demand > 76 1hen can de"tor ma:e a choice of the su"stitution5 (6 Ee can ma:e a choice even "efore it "ecomes due and demanda"le 4acultative vs /enal clause Hthere should "e non&com$liance > (S .) .EB !,JE.S (-D )*+,J(.,))4 MD+.,/+B /(!.,BS6 34,5I&6 /. . Coint and 3olidary &bligations Art. 121%. 50e concurrence o' t*o or !ore creditors or o' t*o or !ore debtors in one and t0e sa!e obligation does not i! ly t0at eac0 one o' t0e 'or!er 0as a rig0t to de!and, or t0at eac0 one o' t0e latter is bound to render, entire co! liance *it0 t0e restation. 50ere is a solidary liability only *0en t0e obligation e9 ressly so states, or *0en t0e la* or t0e nature o' t0e obligation re:uires solidarity. (113%a)
MOTO-Q NOTES
Notes in Civil Law Review 2 s0all e9tinguis0 t0e obligation, *it0out in case t0e debt 0ad been totally aid rejudice to t0e rovisions o' Article by anyone o' t0e! be'ore t0e 1219. re!ission *as e''ected. (11/6a) 50e creditor *0o !ay 0ave e9ecuted any o' t0ese acts, as *ell as 0e *0o collects t0e debt, s0all be liable to t0e ot0ers 'or t0e s0are in t0e obligation corres onding to t0e!. (11/3) Art. 1216. 50e creditor !ay roceed against any one o' t0e solidary debtors or so!e or all o' t0e! si!ultaneously. 50e de!and !ade against one o' t0e! s0all not be an obstacle to t0ose *0ic0 !ay subse:uently be directed against t0e ot0ers, so long as t0e debt 0as not been 'ully collected. (11//a) Art. 121%. #ay!ent !ade by one o' t0e solidary debtors e9tinguis0es t0e obligation. I' t*o or !ore solidary debtors o''er to ay, t0e creditor !ay c0oose *0ic0 o''er to acce t. De *0o !ade t0e ay!ent !ay clai! 'ro! 0is co.debtors only t0e s0are *0ic0 corres onds to eac0, *it0 t0e interest 'or t0e ay!ent already !ade. I' t0e ay!ent is !ade be'ore t0e debt is due, no interest 'or t0e intervening eriod !ay be de!anded. 70en one o' t0e solidary debtors cannot, because o' 0is insolvency, rei!burse 0is s0are to t0e debtor aying t0e obligation, suc0 s0are s0all be borne by all 0is co.debtors, in ro ortion to t0e debt o' eac0. (11/5a) Art. 1212. #ay!ent by a solidary debtor s0all not entitle 0i! to rei!burse!ent 'ro! 0is co.debtors i' suc0 ay!ent is !ade a'ter t0e obligation 0as rescribed or beco!e illegal. (n) Art. 1219. 50e re!ission !ade by t0e creditor o' t0e s0are *0ic0 a''ects one o' t0e solidary debtors does not release t0e latter 'ro! 0is res onsibility to*ards t0e co.debtors, Art. 1221. 50e re!ission o' t0e *0ole obligation, obtained by one o' t0e solidary debtors, does not entitle 0i! to rei!burse!ent 'ro! 0is co.debtors. (n) Art. 1221. I' t0e t0ing 0as been lost or i' t0e restation 0as beco!e i! ossible *it0out t0e 'ault o' t0e solidary debtors, t0e obligation s0all be e9tinguis0ed. I' t0ere *as 'ault on t0e art o' any one o' t0e!, all s0all be res onsible to t0e creditor, 'or t0e rice and t0e ay!ent o' da!ages and interest, *it0out rejudice to t0eir action against t0e guilty or negligent debtor. I' t0roug0 a 'ortuitous event, t0e t0ing is lost or t0e er'or!ance 0as beco!e i! ossible a'ter one o' t0e solidary debtors 0as incurred in delay t0roug0 t0e judicial or e9trajudicial de!and u on 0i! by t0e creditor, t0e rovisions o' t0e receding aragra 0 s0all a ly. (11/%a) Art. 1222. A solidary debtor !ay, in actions 'iled by t0e creditor, avail 0i!sel' o' all de'enses *0ic0 are derived 'ro! t0e nature o' t0e obligation and o' t0ose *0ic0 are ersonal to 0i!, or ertain to 0is o*n s0are. 7it0 res ect to t0ose *0ic0 ersonally belong to t0e ot0ers, 0e !ay avail 0i!sel' t0ereo' only as regards t0at art o' t0e debt 'or *0ic0 t0e latter are res onsible. (11/2a)
9 2
;oint o"ligation Solidar% o"ligation
,n the e<ams if (2 * and # are de"tors and C and 8 are creditors2 and it s$ea:s of solidarit%2 $resume solidarit% on "oth sides
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Notes in Civil Law Review 2 H2> 1here the $artnershi$ in the course of its "usiness receives mone% or $ro$ert% of a 76 ( and * o"liged themselves to third $erson and the mone% or deliver 9thousand $esos worth of $ro$ert% so received is s$ecific sac:s of rice to C and 8 1hat misa$$lied "% an% $artner while is the t%$e of o"ligation5 it is in the custod% of the $artnershi$ Hn> (6 ,t is a 'oint o"ligation unless there *(! BC(M 7DBS.,)-6 is a sti$ulation; the law requires it; the nature of the o"ligation requires it (rt 9I2@ (ll $artners are lia"le solidaril% with the $artnershi$ for ever%thing chargea"le to the $artnershi$ under (rticles 9I22 and 9I23 Hn> NATU E O- T.E OBLIGATION /.IC. EQUI ES SOLI!A IT,: B<am$le6 9 +ia"ilit% arising from human relations Htorts&29N@>
76 * delivered entire 9 thousand $esos to C2 can 8 com$el * to deliver5 (6 8es *ecause the o"ligation is 'oint Solidar%6 9 2 ;oint and several 'ointl% and severall%
!onquillo v #( H932 S#!( 2A@> Aindividually and jointly, res ectively, collectively and distinctively.B ,n $romissor% note6 , $romise to $a% ( and * Hsolidar%> 1e $romise to $a% Hsolidar%> ,f sim$le Q1eR 'oint Solidar% lia"ilit% e<am$les6 +(1 Solution inde"iti2 crimes2 negotiorum gestio ,n agenc% read " solidar% on the on the outline2 9I23&9I2@&F tortuous act of one of the $arties (rt 9I23 .he $artnershi$ is "ound to ma:e good the loss6 H9> 1here one $artner acting within the sco$e of his a$$arent authorit% receives mone% or $ro$ert% of a third $erson and misa$$lies it; and
Art. 219/. 50e res onsibility o' t*o or !ore ersons *0o are liable 'or :uasi. delict is solidary. 2 Decisions of the Su$reme #ourt which "ecame final
+iwanag v 1## #om$utations6 ;oint o"ligations /920 ( * # 8 C
&F C ma% demand /?0 ,f C demands from (2 ( is to $a% onl% /20 Mi<ed Solidarit% C ma% demand 920 from an% of them
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Notes in Civil Law Review 2 76 if C remitted entire o"ligation in favor of (2 can 8 still collect from * and #5 1hat if there was an agreement5 ( G S; * G T; # G90@; C G U ; 8 G T (6 8es (6 ,f 'oint& C with res$ect to ( can demand @5; 76 ,f solidar%2 # "ecame insolvent2 how much can C demand5 76 ,f mi<ed6 (6 920 .he share of 9 solidar% de"tor shall "e shouldered "% other solidar% (6 CG N0; 8 G 30; C ma% demand de"tors /22 50 from ( /assive solidarit%6 -o agreement de"tors are solidaril% "ound C ma% demand ?0 from ( ,f there is an agreement6 C ma% demand from (& @52 * and #& 22 50 (ctive Solidarit%6 #reditor solidaril% "ound C can demand from ( G @0; if 8 receives @02 he should give 20 to C ,f there is an agreement6 C ma% demand @5 from ( and 8 ma% demand 95 from ( ,n a 'oint o"ligation if ( $aid the whole 9202 he cannot claim reim"ursement from * and # unless he $roves that the% have "een "enefited .here was $a%ment to the wrong $art% Solidar%6 76 ( demanded $a%ment from C2 can 8 still collect5 (6 -o the $a%ment of one de"tor e<tinguishes the o"ligation 76 ,n 'oint2 # "ecame insolvent2 how much can C demand from (5 (6 Still /20 ,nsolvenc% shall increase the de"t of 'oint de"tors not 76 C and 8 filed a case against (2 however it was dismissed 8 filed a case again 1ill his action $ros$er5 (6 it de$ends if 'oint or solidar% 76 ,f 'oint6 ,f reason is $rescri$tion2 8 still files2 ma% it $ros$er5 (6 8es .he de"ts are se$arate and distinct in 'oint (ction shall not inure to C 76 ,f ( was com$elled to $a% C2 how much can ( recover5 (6 4rom *G/?0 E0ISSION IN SOLI!A ,: 76 C condones share of ( and demanded $a%ment from * Eow much can * $a%5 (6 /I0 76 ,f after condonation # was alread% insolvent2 how much can * recover from (5 (6 Eaving $aid I02 * shall recover 202 even if remitted2 it does not e<em$t if one is insolvent E--ECT O- !IS0ISSAL O- ACTION
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Notes in Civil Law Review 2 76 ,f the ground is su"'ect to different 76 ,f C demands $a%ment2 ( $aid 82 conditions5 can C still demand $a%ment from (5 1ho has the right to choose5 (6 8es .he de"ts are se$arate and distinct in 'oint (ction shall not inure (6 De$ends on the agreement to C 76 1hat if there is no agreement5 76 ,f ground is minorit% Ma% it $ros$er5 (6 .olentino& should "e treated li:e solidar% /a%ment should "e made to (6 -o2 it is an a"solute defense the solidar% creditor who demanded first 76 ,f dismissed "ecause contract is void2 will it $ros$er5 L Sir does not agree3 !ules on alternative o"ligation should govern "ecause under the law solidarit% is not (6 -o $resumed hence dis'unctive is not one of it 76 if solidar%5 (6 -o .he demand of one creditor inures to the "enefit of other creditors *(! BC(M,-(.,)- 7DBS.,)-6 76 4our medical students rented an a$artment .he% agreed for the $a%ment of utilities *efore the lease contract ended2 3 of the @ went "ac: to their countr% .he% have un$aid tele$hone "ills worth 900:2 can the one left $a% onl% /255 (6 8es ,t is $resumed to "e a 'oint o"ligation as $rovided in (rticle 920A Art. 121%. 50e concurrence o' t*o or !ore creditors or o' t*o or !ore debtors in one and t0e sa!e obligation does not i! ly t0at eac0 one o' t0e 'or!er 0as a rig0t to de!and, or t0at eac0 one o' t0e latter is bound to render, entire co! liance *it0 t0e restation. 50ere is a solidary liability only *0en t0e obligation e9 ressly so states, or *0en t0e la* or t0e nature o' t0e obligation re:uires solidarity. (113%a) !IS"UNCTI1E 9 2 ( will $a% /920 either to C or 8 ( or * will $a% C -BC. MBB.,-J .DBSD(83 ;ul% 2@2 200A *(! BC(M 7DBS.,)-6 76 #or$oration $romised to deliver furniture set to ( the% agreed that in case of non com$liance2 a $enalt% of 900 thousand $esos must "e $aid .he cor$oration delivered furniture set which is different2 instead of -arra *u%er is as:ing for 300 thousand $esos as damages and 900 thousand for the $enalt% ,s this claim tena"le5 (6 D/ +aw #enter6 ,t is not tena"le .he $enalt% is the su"stitute for damages (lternative answer6 8es2 he ma% claim for damages "ecause there was fraud committed /B-(+ #+(DSB $rovides for greater lia"ilit% !o"es&4rancisco v #4, I? S#!( 5N 50e su re!e court ruled t0at t0e /E sti ulation is not a enal clause. 4ven *it0out suc0 sti ulation, cor oration is still liable to ay 6E based on Article 2219.
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Notes in Civil Law Review 2 Art. 2219. I' t0e obligation consists in B<ce$tion6 if the "asis is the nullit% of t0e ay!ent o' a su! o' !oney, and the o"ligation there can "e a $enalt% t0e debtor incurs in delay, t0e inde!nity 'or da!ages, t0ere being no B<am$le64oreigners who contracted sti ulation to t0e contrary, s0all be t0e 4ili$inos usuall% $enalt% is $rovided in ay!ent o' t0e interest agreed u on, case contract is declared void ,n this and in t0e absence o' sti ulation, t0e case the nullit% of the $rinci$al does legal interest, *0ic0 is si9 er cent er not affect the $enalt% annu!. (1112) *achrach v Bs$iritu 52 /E,+ 3@? Facts( 50ere *as a sale o' 2 truc8s *it0 interest o' 12E 'or t0e un aid ortion and a enalty o' 25E. Deld( #arties e9 ressly sti ulated t0e ay!ent o' interest 0ence liable, t0e enalty *as reduced to 11E because t0ere *as artial er'or!ance+ usurious. L no need to $resent $roof of damages as long as there is "reach of the o"ligation 76 Ma% the aggrieved $art% "e a"le to com$el the other $art% to $a% $enalt% $lus $erformance5 (6 .he general rule is the% ma% not2 however if it is clearl% granted2 the% ma% ,llustration6 ( construction of a "uilding which has a $enalt% of 90 thousand $esos $er da% if not com$leted on the agreed da%2 $lus $erformance was agreed u$on 76 De"tor offered his car instead of $a%ing the $enalt% Ma% a de"tor com$el creditor to acce$t $enalt% instead of car (6 Jeneral rule6 -o; B<ce$tion6 Dnless e<$ressl% reserved 76 ,f the $rinci$al is void2 will it follow that the accessor% is void5 (6 Jeneral !ule6 8es B EAC. O- OBLIGATION: 76 1ho can "e held lia"le5 (6 .hose who are enumerated (rticle 99A0; hence2 an%one in
Art. 11%1. 50ose *0o in t0e er'or!ance o' t0eir obligations are guilty o' 'raud, negligence, or delay, and t0ose *0o in any !anner contravene t0e tenor t0ereo', are liable 'or da!ages. (1111) 4!(DD6 9 4raud in contract art 933I
Art. 1332. 50ere is 'raud *0en, t0roug0 insidious *ords or !ac0inations o' one o' t0e contracting arties, t0e ot0er is induced to enter into a contract *0ic0, *it0out t0e!, 0e *ould not 0ave agreed to. (1269) 2 3 #ausal fraud dolo causante in contracts; voida"le ,ncidental fraud dolo incidente
Art. 11%1. 50ose *0o in t0e er'or!ance o' t0eir obligations are guilty o' 'raud, negligence, or delay, and t0ose *0o in any !anner contravene t0e tenor t0ereo', are liable 'or da!ages. (1111) & if o"ligation is monetar% in character for e<am$le2 /9M2 it is interest "% wa% of damages #om$ensator% damages e<$ressl% sti$ulated in writing
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Notes in Civil Law Review 2 DB+(86
QMoraR; non&fulfillment with res$ect to time 76 ,s article 99A0 "% wa% of dolo5 (6 -o *etter term is "ad faith or malice .he $hrase Qin an% mannerR covers not onl% fraud "ut also negligence and dela% 1(,KB! of future fraud is void6 consider the dated when waiver was made2 and date when the fraudulent act ha$$ened no dela% in o"ligation not to do Ho"viousl%3>
Effects of 2ela#: 9 ,f determinate thing to deliver2 there was a fortuitous event the o"ligor is still lia"le
*(! BC(M 7DBS.,)-6 76 ( and * entered into a lease agreement over certain machineries * was to o$en a car re$air sho$ )n 4e"ruar% 952 the% agreed that the machineries will "e leased for one month )n March 952 the lessor demanded return of the machineries *ecause the truc: of * had a $ro"lem2 the machineries were not returned ,s * lia"le5 (6 -o2 * is not lia"le .here were onl% 2I da%s (n agreement of 9 month is 30 da%s L(s a rule there has to "e a demand LDemand need not "e in writing; ,t is different from demand to interru$t the $rescri$tive $eriod Art. 1169. 50ose obliged to deliver or to do so!et0ing incur in delay 'ro! t0e ti!e t0e obligee judicially or e9trajudicially de!ands 'ro! t0e! t0e 'ul'ill!ent o' t0eir obligation. Do*ever, t0e de!and by t0e creditor s0all not be necessary in order t0at delay !ay e9ist( (1) 70en t0e obligation or t0e la* e9 ressly so declare+ or
-BJ+,JB-#B Hmemorize> Art. 11%3. 50e 'ault or negligence o' t0e obligor consists in t0e o!ission o' t0at diligence *0ic0 is re:uired by t0e nature o' t0e obligation and corres onds *it0 t0e circu!stances o' t0e ersons, o' t0e ti!e and o' t0e lace. 70en negligence s0o*s bad 'ait0, t0e rovisions o' Articles 11%1 and 2211, aragra 0 2, s0all a ly. I' t0e la* or contract does not state t0e diligence *0ic0 is to be observed in t0e er'or!ance, t0at *0ic0 is e9 ected o' a good 'at0er o' a 'a!ily s0all be re:uired. (111/a) de$ends on the circumstances2 time and $lace Degree of diligence6 that of a good father of a famil% unless the law or the sti$ulations $rovide otherwise
76 Ma% a waiver of future negligence "e considered void (6 8es Jross negligence is equivalent to fraud .elefast v #astro 95I S#!( @@5 50e negligence in t0is case considered gross in c0aracter. *as
(2) 70en 'ro! t0e nature and t0e circu!stances o' t0e obligation it a ears t0at t0e
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Notes in Civil Law Review 2 designation o' t0e ti!e *0en *0ic0, t0oug0 'oreseen, *ere t0e t0ing is to be delivered or inevitable. (1115a) t0e service is to be rendered *as a controlling !otive 'or t0e - it is the ha$$ening of a establis0!ent o' t0e contract+ fortuitous event ,t a$$lies to or an% :ind of o"ligation (3) 70en de!and *ould be useless, as *0en t0e obligor 0as rendered it beyond 0is o*er to er'or!. ,n 99?N no demand is needed 9 2 3 @ "% law eg /a%ment of ta<2 agenc% Sti$ulation 1hen $eriod is the controlling motive B< 1edding Demand would "e useless due to the of the de"tor ,n o"ligation to give2 (rticle 92?2 a$$lies6 Art. 1262. An obligation *0ic0 consists in t0e delivery o' a deter!inate t0ing s0all be e9tinguis0ed i' it s0ould be lost or destroyed *it0out t0e 'ault o' t0e debtor, and be'ore 0e 0as incurred in delay. 70en by la* or sti ulation, t0e obligor is liable even 'or 'ortuitous events, t0e loss o' t0e t0ing does not e9tinguis0 t0e obligation, and 0e s0all be res onsible 'or da!ages. 50e sa!e rule a lies *0en t0e nature o' t0e obligation re:uires t0e assu! tion o' ris8. (1122a) ,n (rticle 99?52 even if o"ligation "ecame im$ossi"le due to 4ortuitous event2 de"tor is still lia"le Art. 1165. 70en *0at is to be delivered is a deter!inate t0ing, t0e creditor, in addition to t0e rig0t granted 0i! by Article 11%1, !ay co! el t0e debtor to !a8e t0e delivery. I' t0e t0ing is indeter!inate or generic, 0e !ay as8 t0at t0e obligation be co! lied *it0 at t0e e9 ense o' t0e debtor. I' t0e obligor delays, or 0as ro!ised to deliver t0e sa!e t0ing to t*o or !ore ersons *0o do not 0ave t0e sa!e interest, 0e s0all be res onsible 'or any 'ortuitous event until 0e 0as e''ected t0e delivery. (1196) $romise to deliver to two or more $ersons2 the de"tor is still lia"le In 6a ocor v. ,A (161 3,<A 3//), to be e9cused
In reci rocal obligations, neit0er arty incurs in delay i' t0e ot0er does not co! ly or is not ready to co! ly in a ro er !anner *it0 *0at is incu!bent u on 0i!. Fro! t0e !o!ent one o' t0e arties 'ul'ills 0is obligation, delay by t0e ot0er begins. (1111a) !eci$rocal o"ligations6 & arise from the same transaction B<am$le6 #ontract of sale 99?N should a$$l% onl% if "oth are alread% due and demanda"le u$on esta"lishment or at the same time (gcaoili v JS,S 9?5 S#!( 9 i' bot0 in delay, no rig0t o' recission.
Art. 11%/. 49ce t in cases e9 ressly s eci'ied by t0e la*, or *0en it is ot0er*ise declared by sti ulation, or *0en t0e nature o' t0e obligation re:uires t0e assu! tion o' ris8, no erson s0all be res onsible 'or t0ose events *0ic0 could not be 'oreseen, or
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Notes in Civil Law Review 2 t0ere s0ould be no concurring 'ourt0 o' t0e value o' t0e t0ings negligence. *0ic0 are t0e object t0ereo'+ *(! BC(M 7DBS.,)-6 76 ( ring was delivered to a 'ewelr% sho$ for cleaning (fter a wee:2 the ring was not %et cleaned .hereafter2 the ring was lost due to ro""er% ,s the 'ewelr% sho$ lia"le5 (6 8es *efore the fortuitous event2 the 'ewelr% sho$ was alread% in dela% E0E!IES -O B EAC.: (2) 50ose agreed u on in re resentation o' absentees, i' t0e latter su''er t0e lesion stated in t0e receding nu!ber+ (3) 50ose underta8en in 'raud o' creditors *0en t0e latter cannot in any ot0er !anner collect t0e clai!s due t0e!+ (/) 50ose *0ic0 re'er to t0ings under litigation i' t0ey 0ave been entered into by t0e de'endant *it0out t0e 8no*ledge and a roval o' t0e litigants or o' co! etent judicial aut0ority+ (5) All ot0er contracts s ecially declared by la* to be subject to rescission. (1291a) ,f court declared the act as rescissor%2 it will retroact from the time notice was given to the other $art% 76 1h% is there a need to file a rescission with the courts when it can "e e<tra'udicial5 (6 *ecause a $art% cannot ta:e the law in his own hands es$eciall% if there is recover% needed D/ v de los (ngeles H35 S#!( 902> . t0ere can be unilateral decision rovided it is agreed u on. *(! BC(M,-(.,)- 7DBS.,)76 ( sold a $arcel of land to * for /9M2 * $aid 900 thousand as down $a%ment Kendor will "e lia"le for eviction of squatters2 "alance to "e $aid 30 da%s after eviction2 if squatters are still there for ? months "u%er should return the mone% During the ?th month $eriod2 the $rice
( B<tra 'udicial $rinci$al remed%2 e<$ressl% granted "% law & 99N9 ,t can "e invo:ed aside from other remed% (rt 93I9 is onl% a su"sidiar% remed% Art. 1191. 50e o*er to rescind obligations is i! lied in reci rocal ones, in case one o' t0e obligors s0ould not co! ly *it0 *0at is incu!bent u on 0i!. 50e injured arty !ay c0oose bet*een t0e 'ul'ill!ent and t0e rescission o' t0e obligation, *it0 t0e ay!ent o' da!ages in eit0er case. De !ay also see8 rescission, even a'ter 0e 0as c0osen 'ul'ill!ent, i' t0e latter s0ould beco!e i! ossible. 50e court s0all decree t0e rescission clai!ed, unless t0ere be just cause aut0oriGing t0e 'i9ing o' a eriod. 50is is understood to be *it0out rejudice to t0e rig0ts o' t0ird ersons *0o 0ave ac:uired t0e t0ing, in accordance *it0 Articles 1325 and 1322 and t0e $ortgage )a*. (112/) Art. 1321. 50e 'ollo*ing contracts are rescissible( (1) 50ose *0ic0 are entered into by guardians *0enever t0e *ards *0o! t0ey re resent su''er lesion by !ore t0an one.
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Notes in Civil Law Review 2 of the land was dou"led Seller offered *0ile 0e is in ossession o' to return the 900 thousand $esos t0e!+ *u%er refused and offered to $a% the "alance and as:ed seller to sign (2) In case o' t0e insolvency o' Seller filed an action for rescission ,s t0e buyer, a rig0t o' sto ing the action $ro$er5 t0e goods in transitu a'ter 0e 0as arted *it0 t0e ossession (6 -o .he seller was not the o' t0e!+ aggrieved $art% !escission as a remed% ma%"e invo:ed onl% "% the (3) A rig0t o' resale as li!ited aggrieved $art% by t0is 5itle+ D4# v #( H33 S#!( 9> 1. &nly t0ose *0o 0ave co! lied *it0 t0eir obligation or at least ready to co! ly. 2. Hiolation !ust be substantial/'unda!ental in c0aracter. 50ere *as no s0o*ing t0at $a'ran 0ad e90austed all t0e re!edies available. 3,( rescission is under 1191 not 1321. 76 ,f o"ligation "ecomes im$ossi"le2 what is the remed%5 (6 !escission ,f alread% rescinded2 he can no longer demand for the fulfillment Magdalena Bstate v 3@@> M%ric: HA9 /hil (/) A rig0t to rescind t0e sale as li8e*ise li!ited by t0is 5itle. 70ere t0e o*ners0i in t0e goods 0as not assed to t0e buyer, t0e un aid seller 0as, in addition to 0is ot0er re!edies a rig0t o' *it00olding delivery si!ilar to and coe9tensive *it0 0is rig0ts o' lien and sto age in transitu *0ere t0e o*ners0i 0as assed to t0e buyer. (n) * ;udicial !emedies6 a > /rinci$al $erformance remedies s$ecific
76 ,n o"ligation to do2 is su"stitute $erformance allowed5 (6 ,t de$ends ,f $ersonal qualification was sti$ulated ,f no s$ecific $erformance2 it amounts to involuntar% servitude 76 ,f o"ligation was to o"ligation was $oorl% done do and
$yric8 *as able to recover because t0ere *as no sti ulation as to 'or'eiture. )ther e<tra'udicial remedies6 !ights of un$aid seller6 Art. 1526. 3ubject to t0e rovisions o' t0is 5itle, not*it0standing t0at t0e o*ners0i in t0e goods !ay 0ave assed to t0e buyer, t0e un aid seller o' goods, as suc0, 0as( (1) A lien on t0e goods or rig0t to retain t0e! 'or t0e rice
(6 Art. 116%. I' a erson obliged to do so!et0ing 'ails to do it, t0e sa!e s0all be e9ecuted at 0is cost. 50is sa!e rule s0all be observed i' 0e does it in contravention o' t0e tenor o' t0e obligation. Furt0er!ore, it !ay be decreed t0at *0at 0as been oorly done be undone. (1192)
" > Su"sidiar% remedies
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Notes in Civil Law Review 2 9 accion $auliana to "e discussed in (6) "y novation. rescissi"le contracts &t0er causes o' e9tinguis0!ent o' 2 accion su"rogatoria creditor ma% obligations, suc0 as annul!ent, "e su"rogated to the right of the rescission, 'ul'ill!ent o' a resolutory de"tor as to 3rd $ersons condition, and rescri tion, are governed else*0ere in t0is ,ode. (1156a) & $ertains to o"ligation to give; monetar% o"ligation ,t does not $ertain to $urel% $ersonal right B<am$le6 acts of agenc% - ,t $resu$$oses that there is an e<isting valid o"ligation 76 1hat is the e<tent of lia"ilit%5 !ecission $rinci$al remed% is under article 99N9 (6 223?2 a$$lies to $resent and future $ro$ert% Art. 1191. 50e o*er to rescind obligations is i! lied in reci rocal Art. 2236. 50e debtor is liable *it0 all ones, in case one o' t0e obligors 0is ro erty, resent and 'uture, 'or s0ould not co! ly *it0 *0at is t0e 'ul'ill!ent o' 0is obligations, incu!bent u on 0i!. subject to t0e e9e! tions rovided by la*. (1911a) 50e injured arty !ay c0oose bet*een t0e 'ul'ill!ent and t0e rescission o' - ,f a $erson is 'udiciall% declared t0e obligation, *it0 t0e ay!ent o' to "e insolvent2 when he da!ages in eit0er case. De !ay also inherits2 the future $ro$ert% is see8 rescission, even a'ter 0e 0as e<em$t c0osen 'ul'ill!ent, i' t0e latter s0ould beco!e i! ossible. 4amil% Eome6 Ma% "e a su"'ect for ta< non$a%ment2 creditors for construction2 claim of la"orers and mortgagee H!ules of #ourt rule 3N2 sec 93> 0O!ES O- E3TINGUIS.0ENT Article 5&65 Art. 1231. &bligations e9tinguis0ed( (1) "y ay!ent er'or!ance( 4 50e court s0all decree t0e rescission clai!ed, unless t0ere be just cause aut0oriGing t0e 'i9ing o' a eriod. 50is is understood to be *it0out rejudice to t0e rig0ts o' t0ird ersons *0o 0ave ac:uired t0e t0ing, in accordance *it0 Articles 1325 and 1322 and t0e $ortgage )a*. (112/) B<tinctive $rescri$tion conversion of civil to natural 76 (re thes modes e<clusive5 (6 -o3 ,n Saura v D*/2 there was a mutual dissent .his also considered as a mode .he Su$reme #ourt said that there was a $erfected consensual contract of loan Hmutuum> 76 (side from it2 what are the other modes5
are or
(2) "y t0e loss o' t0e t0ing due( (3) "y t0e condonation re!ission o' t0e debt+ or
(/) "y t0e con'usion or !erger o' t0e rig0ts o' creditor and debtor+ (5) "y co! ensation+
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Notes in Civil Law Review 2 (6 Death & .o the e<tent of $ersonal - Ma% a$$l% o"ligation to do ,t does not e<tinguish o"ligation $ro$ert% rights Bg (genc% death of an agent; /artnershi$ death of a !ules6 $artner 76 4ulfillment of resolutor% condition in 9239 $ertains to5 (6 Ea$$ening condition of a resolutor% a.) a> "> c> d>
to
all
:inds
of
(s to $erson who $a%s (s to whom $a%ment is made /restation in o"ligation Date2 time and $lace erson *0o ays. Should "e called $a%or2 not onl% de"tor2 "ecause third $ersons ma% $a% -ot ever% $erson under the -## can com$el a $erson to $a% e<ce$t those who have an interest and those who "% virtue of sti$ulation C is a 3 rd
will of one of the $arties in contracts as a general rule does not e<tinguish o"ligation B<ce$tion6 contracts involving trust and confidence /artnershi$ without $re'udice to the $ossi"le lia"ilit% of $artner causing dissolution
76 ,s ha$$ening of a fortuitous event a mode of e<tinguishment5 (6 4ortuitous events are not modes of e<tinguishment )nl% results to loss of the thing due ,nsolvenc% $er se is not a mode of e<tinguishment2 there must "e a 'udicial declaration
Bg ( is inde"ted to * $erson
76 1ho are those who have interest5 (6 ;oint de"tors have interest in the fulfillment of the entire o"ligation2 those who are su"sidiar% lia"le Hguarantors2 mortgagors2 $ledgors > 76 ,f a third $erson $a%s2 if he has interest2 what ha$$ens5 (6 Su"rogation ,f C is a guarantor2 8 is a mortgagor who secured de"t2 8 $a%s2 he shall "e su"rogated to the rights of * and can e<ercise right of a creditor if C $a%s *2 o"ligation of ( to * is e<tinguished "ut accessor% o"ligations are not e<tinguished ,t su"sists that is wh% C can still foreclose the mortgage
76 1hat a"out renunciation "% the creditor5 (6 -ot necessaril% ,f it is gratuitous2 it would fall under condonation0remission ,f for a consideration2 it falls under novation 76 #om$romise5 (6 ,t ma% *ut it would fall under one of those mentioned "% law; common result reduction of o"ligation which falls under condonation; if it would fall under a totall% new o"ligation2 it is novation 5. +A,0ENT s%non%mous with $erformance
76 ( is inde"ted to * C $a%s 900 thousand to * for (Ps de"t Does ( have a right to recover from ( and can he have a right of foreclosure5
MOTO-Q NOTES
Notes in Civil Law Review 2 (6 ,t de$ends ,f ( consented2 he has 76 C $aid * without an% intention of the right "eing reim"ursed 1hat if C demanded the return after one wee:5 76 ,f "efore C $a%s2 ( $artiall% $aid 20 thousand2 C $aid entire 900 thousand2 (6 ,ndirect Donation (s far as how much can 8 as: for $a%ment2 it is valid and "inding reim"ursement5 & /a%or must have the ca$acit% to (6 )nl% I0 thousand2 that which alienate the thing or has free dis$osal redounded to the "enefit of ( b.) as to t0e erson to *0o! ay!ent 76 ,f C $a%s without the :nowledge of is !ade. (2 can he com$el ( to $a%5 & called $a%ee; normall% the creditor (6 -o Ee is not su"rogated to the rights of *2 hence he cannot foreclose #(SB6 (raVas v .utaan the mortgage QconsentedR means de"tor failed to o"'ect at a reasona"le time 76 C had agreement with * without :nowledge of (2 can he recover the $a%ment made5 (6 (s long as $a%ment was without :nowledge2 third $erson shall not "e su"rogated to the rights of the creditor H923?&923A> Art. 1236. 50e creditor is not bound to acce t ay!ent or er'or!ance by a t0ird erson *0o 0as no interest in t0e 'ul'ill!ent o' t0e obligation, unless t0ere is a sti ulation to t0e contrary. 70oever ays 'or anot0er !ay de!and 'ro! t0e debtor *0at 0e 0as aid, e9ce t t0at i' 0e aid *it0out t0e 8no*ledge or against t0e *ill o' t0e debtor, 0e can recover only inso'ar as t0e ay!ent 0as been bene'icial to t0e debtor. (1152a) Art. 123%. 70oever ays on be0al' o' t0e debtor *it0out t0e 8no*ledge or against t0e *ill o' t0e latter, cannot co! el t0e creditor to subrogate 0i! in 0is rig0ts, suc0 as t0ose arising 'ro! a !ortgage, guaranty, or enalty. (1159a) creditor does not 0ave to be a arty. A creditor !ay be any erson *0o 0as t0e rig0t to co! el t0e er'or!ance
Bg ( is inde"ted to * *ut the real $a%ment should "e given to 8; even if ( $a%s *2 8 can still com$el ( to $a% there is also $a%ment to a $erson authorize to receive $a%ment; the law ma% $rovide Bg /a%ment to a sheriff2 e<ecutors and administrators
76 Ma% $a%ment to a wrong $erson e<tinguish o"ligation5 (6 Jen rule6 -o3 B<ce$t6 9 if $a%ment redounded to the "enefit of * )therwise2 o"ligation is not e<tinguished 76 1ho has the "urden to $rove5 (6 -o need to $rove if6 9 it was ratified "% the creditor; 2 $rinci$le of esto$$el; 3 if the $erson to whom $a%ment made acquired rights of creditor after the $a%ment 76 (re there an% more e<ce$tions5 (6 8es ,f $a%ment was made in good faith to a $erson in $ossession of the
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Notes in Civil Law Review 2 credit2 not a mere $ossession of the (s to :ind of o"ligation6 instrument 76 ( is o"liged to * Ee $aid ;a$anese 76 C Hin $ossession of /-> demanded %en ,s it valid5 $a%ment from ( when the $romissor% note "ecame due and demanda"le2 ( (6 8es !( I9I3 /a%ment ma% "e $aid < in good faith made in an% currenc% as long as sti$ulated *efore6 !( 52N&$a%ment (6 )"ligation is e<tinguished not in /hili$$ine currenc% is $rohi"ited 76 ( is inde"ted to * Eowever2 * dies and is survived "% 8 Bven if ( $aid 82 can it "e invalidated5 (6 8es ,f the $a%ment was not made in good faith2 such as when there is a $ending action to declare 8 inca$acitated 76 ( is inde"ted to * * assigned the credit to C Ma% it e<tinguish the assignment5 (6 8es c.)#restation in obligation & identit% of the o"ligation; consider the $ur$ose Jeneral !ule6 ( $artial $erformance is non&com$liance B<ce$t6 11 .he $arties e<$ressl% sti$ulate & Su"'ect to different terms integrit% of the $restation !escission is not a remed% if there is su"stantial $erformance 76 #an creditor "e com$elled to acce$t chec:5 (6 -o (s stated in -ew $acific tim"er v SeVeris #reditor ma% refuse to acce$t chec: *efore6 ,f Manager or #ashierPs chec:2 it is deemed as cash 76 ,f $artl% chec: and $artl% cash5 (6 #reditor ma% refuse B<ce$t if sti$ulated ,n (rticle 92@N2 it is e<tinguished if encashed Art. 12/9. 50e ay!ent o' debts in !oney s0all be !ade in t0e currency sti ulated, and i' it is not ossible to deliver suc0 currency, t0en in t0e currency *0ic0 is legal tender in t0e #0ili ines. 50e delivery o' ro!issory notes ayable to order, or bills o' e9c0ange or ot0er !ercantile docu!ents s0all roduce t0e e''ect o' ay!ent only *0en t0ey 0ave been cas0ed, or *0en t0roug0 t0e 'ault o' t0e creditor t0ey 0ave been i! aired. In t0e !eanti!e, t0e action derived 'ro! t0e original obligation s0all be 0eld in t0e abeyance. (11%1) 76 ,f chec: is stale2 will the o"ligation "e e<tinguished5 (6 -o 76 1hen is $a%ment e<tinguish o"ligation5 thru chec:
#ase6 ;M .uason v ;avier ( o"ligated himself to deliver 900 sac:s to * for 9000 $esos Ee onl% delivered N5 76 Eow much can he recover5 (6 (mount or value delivered2 less damages
MOTO-Q NOTES
Notes in Civil Law Review 2 (6 1hen it is encashed or through s ecial la*s. (11%5a) fault of the de"tor when it had "een im$aired conventional assignment 76 * owes ( 9M in 9N?I ( claimed that in 9N?I2 the value of 9M is onl% requires consent of "oth $arties 500: com$ared to the $resent "ecause of devaluation2 hence he claimed 2M #(SB6 4ilinvest v /hili$$ine (cet%lene "ase on (rt 9250 Art. 1251. In case an e9traordinary in'lation or de'lation o' t0e currency sti ulated s0ould su ervene, t0e value o' t0e currency at t0e ti!e o' t0e establis0!ent o' t0e obligation s0all be t0e basis o' ay!ent, unless t0ere is an agree!ent to t0e contrary. (n) ,s his contention correct5 (6 -o (s decided in the /hili$$ine /i$e 4oundr% case2 the su$reme court said Qas far as /hili$$ine e<$erience is concerned2 there has never "een an e<traordinar% inflation as e<$erienced "% Jerman% in 9N20&9N23 (rt 9250 ma% onl% "e invo:ed if the source is a contract ,n Kelasco v Meralco2 (rticle 9250 ma% not "e invo:ed "ecause the source is a quasi delict R d.)date, ti!e, lace Determinate $lace where o"ligation was constituted Jeneric domicile of the de"tor S+ECIAL -O 0S O- +A,0ENT 5. +a#ment b# Cession an2 2ecion en 7ago. Art. 1255. 50e debtor !ay cede or assign 0is ro erty to 0is creditors in ay!ent o' 0is debts. 50is cession, unless t0ere is sti ulation to t0e contrary, s0all only release t0e debtor 'ro! res onsibility 'or t0e net roceeds o' t0e t0ing assigned. 50e agree!ents *0ic0, on t0e e''ect o' t0e cession, are !ade bet*een t0e debtor and 0is creditors s0all be governed by no dation en ago, t0e delivery o' t0e case *as not consented to. Filinvest *as only an agent+ t0ere *as no trans'er o' o*ners0i . Cession
!acion en 7ago (s to transfer of ownershi$6 .he deliver% results to the transfer of ownershi$2 same is true with a$$lication of $a%ment
-o transfer of ownershi$2 creditor onl% given the $ower to sell
MOTO-Q NOTES
(s to effect $a%ment6
of
Jeneral rule6 B<tinguished onl% as to the e<tent of value delivered B<ce$tion6 unless sti$ulated u$on that an%thing delivered shall e<tend the entire o"ligation Jeneral !ule6 governed "% law on sales onl% if the $re& e<isting o"ligation is in mone% Art. 12/5. Iation in ay!ent, *0ereby ro erty is alienated to t0e creditor in satis'action o' a debt in !oney, s0all be governed by t0e la* o' sales. (n)
Notes in Civil Law Review 2 agree!ent t0at t0ey *ill be Jeneral !ule6 liable u on de'ault on ay!ent B<tinguish onl% as o' surety bond, 0ence no to the e<tent of obligation yet on t0at day. the $roceeds of - 3,( Iation en ago !ay the sale of ertain to delivery o' creditor rig0ts/t0ings. B<ce$tion6 Dnless 11 A77lication of there is an e<$ress agreement /ro"lem6 C is the creditor ( owes him2 900:2 50:2 20: and 90: !ules6 9 de"tor ha the right to designate to which $a%ment is to "e a$$lied a > no $artial $a%ment " > to that which is due and demanda"le2 e<ce$t if $a%ment was made for the "enefit of the de"tor c > ,f the de"t is interest "earing 2 > if de"tor fails to designate2 the creditor ma% designate 3 > if "oth failed to designate6 -ote6 $rovision for a$$lication $a%ment is not a$$lica"le here 11 11 of
76 ,f ( is to deliver a cara"ao2 "ut instead gave a refrigerator ,s it dacion en $ago on sale5 (6 -o ,t is novation .he $re&e<isting o"ligation is not in mone% #(SB6 #itizens Suret% v #( no dation en ago i' at t0e ti!e o' t0e transaction t0ere is no obligation. All transactions *ere e9ecuted *it0in one day. 50e inde!nity
that which is most /ro$ortionate a$$lication H$rovided2 it is of the same nature and "urden> if the de"ts are of different amounts
76 Eow do we determine what is the most onerous5 (6 .here is no hard and fast rule 1e must consider factors and circumstances 6. +a#ment b# cession: 92556 voluntar% assignment requires consent of the creditor
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Notes in Civil Law Review 2 Art. 1255. 50e debtor !ay cede or (2) 70en 0e is inca acitated to assign 0is ro erty to 0is creditors in receive t0e ay!ent at t0e ay!ent o' 0is debts. 50is cession, ti!e it is due+ unless t0ere is sti ulation to t0e contrary, s0all only release t0e debtor (3) 70en, *it0out just cause, 'ro! res onsibility 'or t0e net 0e re'uses to give a recei t+ roceeds o' t0e t0ing assigned. 50e agree!ents *0ic0, on t0e e''ect o' t0e (/) 70en t*o or !ore ersons cession, are !ade bet*een t0e debtor clai! t0e sa!e rig0t to collect+ and 0is creditors s0all be governed by s ecial la*s. (11%5a) (5) 70en t0e title o' t0e obligation 0as been lost. (11%6a) 76 Eow will the $roceeds of the sale "e a$$lied5 #(SB6 Soco v Militante6 (6 9 "ased on sti$ulation 2 without agreement; rules in concurrence and $reference of credits shall "e a$$lied de"tor must deliver his $ro$ert% to creditor !esorted to "% de"tor who is e<$eriencing financial difficult% 7a#ment an2 76 1hen ma% .ender of $a%ment "e made 'udicial5 (6 -o .ender of $a%ment "% its nature is e<tra 'udicial ,llustration6 76 .here was a sale with right to re$urchase Seller a retro refuses to acce$t mone%2 an action was filed /laintiff said that he is not o"liged "ecause there is no tender of $a%ment required ,s his contention correct5 (6 8es -o tender of $a%ment is required -o consignation is required in sale with right to re$urchase 76 ,s notice required "% consignation5 (6 8es 76 2nd notice after consignation is required5 (6 8es !equired "ut it does not need to come from the de"tor2 it is in the form of summons Soco v militante 2 notices $er amount due 76 1hen e<tinguished5 will o"ligation "e
Ten2er of consignation: -
tender of $a%ment alone shall never e<tinguish the o"ligation (ctual offering of the amount or thing
925? the onl% one scenario when tender of $a%ment should "e made2 when creditor refuses to acce$t without 'ust cause Art. 1256. I' t0e creditor to *0o! tender o' ay!ent 0as been !ade re'uses *it0out just cause to acce t it, t0e debtor s0all be released 'ro! res onsibility by t0e consignation o' t0e t0ing or su! due. ,onsignation alone s0all roduce t0e sa!e e''ect in t0e 'ollo*ing cases( (1) 70en t0e creditor is absent or un8no*n, or does not a ear at t0e lace o' ay!ent+
MOTO-Q NOTES
Notes in Civil Law Review 2 (6 1hen creditor acce$ted2 even if (6 -o .his is not a valid o"ligation de"tor refuses2 ma% e<tinguish after therefore no e<tinguishment consignation2 it retroacts from the time of deliver% 76 ,f the thing is lost2 who has the "urden to $rove5 76 .he o"ligation was due in ;anuar%2 9NNI .here was a tender of $a%ment (6 de$ends on who is in $ossession of in ;anuar% 92 2000 "ut was refused ,n the thing at the time of the loss ;anuar% 22 200@2 there was Eowever2 this rule is not a"solute consignation ,n ;anuar% 22 200A there when the loss occurred during the was a court ruling ,s the de"tor lia"le ha$$ening of a calamit%2 li:e t%$hoon to $a% interest5 (6 8es ,f from ;anuar% 9NNI he was alread% in dela%2 u$ to consignation if court ruled to "e valid ,f the consignation was ruled "% the court to "e invalid2 the interest must "e from ;anuar% 9NNI till court ruled (ccording to Sir6 however2 mora acci$iendi &dela% of the creditor to acce$t De"tor ma% release himself from the o"ligation "% the consignation of the thing 76 #an de"tor consignated mone%5 withdraw the !ead6 (rt 92?5 and (rt 92?2 Art. 1265. 70enever t0e t0ing is lost in t0e ossession o' t0e debtor, it s0all be resu!ed t0at t0e loss *as due to 0is 'ault, unless t0ere is roo' to t0e contrary, and *it0out rejudice to t0e rovisions o' article 1165. 50is resu! tion does not a ly in case o' eart0:ua8e, 'lood, stor!, or ot0er natural cala!ity. (1123a) Art. 1262. An obligation *0ic0 consists in t0e delivery o' a deter!inate t0ing s0all be e9tinguis0ed i' it s0ould be lost or destroyed *it0out t0e 'ault o' t0e debtor, and be'ore 0e 0as incurred in delay. 70en by la* or sti ulation, t0e obligor is liable even 'or 'ortuitous events, t0e loss o' t0e t0ing does not e9tinguis0 t0e obligation, and 0e s0all be res onsible 'or da!ages. 50e sa!e rule a lies *0en t0e nature o' t0e obligation re:uires t0e assu! tion o' ris8. (1122a) 76 ,n an agreement "etween ( and * for construction of house2 $roceeds shall "e equall% distri"uted from the sale * didnPt give his share in the house "ecause of the high $rice of materials ( filed an action Ma% court grant the action5 (6 -o *ecause the event of increase of $rice is foreseen 92?A is not a$$lica"le
(6 8es ,f the withdrawal is made "efore acce$tance of creditor and "efore court ruled on the consignation if creditor acce$ted and court ruled2 no withdrawal ,f no ruling %et2 it ma% "e withdrawn if creditor acce$ted !evival without consent of accessor% creditor is released
LOSS /8en not 9ali2: when it goes out of commerce /rohi"ited "% law ,m$ossi"ilit% of $erformance
76 .o deliver sha"u5 ,s the o"ligation e<tinguished5
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Notes in Civil Law Review 2 by roving t0at t0e delivery o' t0e docu!ent *as !ade in virtue o' ay!ent o' t0e debt. (1122) - court can?t c0ange agree!ent o' t0e arties. Art. 12%2. 70enever t0e rivate docu!ent in *0ic0 t0e debt a ears is 92?A onl% difficult% not im$ossi"ilit% 'ound in t0e ossession o' t0e debtor, it s0all be resu!ed t0at t0e creditor Art. 126%. 70en t0e service 0as delivered it voluntarily, unless t0e beco!e so di''icult as to be !ani'estly contrary is roved. (1129) beyond t0e conte! lation o' t0e #(SB6 )cceVa v ;aco"sen arties, t0e obligor !ay also be released t0ere'ro!, in *0ole or in art. (n) 92?@ de$ends on the intention of the $arties Art. 126/. 50e courts s0all deter!ine *0et0er, under t0e circu!stances, t0e artial loss o' t0e object o' t0e obligation is so i! ortant as to e9tinguis0 t0e obligation. (n) CON!ONATION O Qdonation of a creditR 92A2 refers to Q$rivate document onl%R ,f $u"lic document2 it needs man% co$ies Art. 12%1. ,ondonation or re!ission is essentially gratuitous, and re:uires t0e acce tance by t0e obligor. It !ay be !ade e9 ressly or i! liedly. &ne and t0e ot0er 8ind s0all be subject to t0e rules *0ic0 govern ino''icious donations. 49 ress condonation s0all, 'urt0er!ore, co! ly *it0 t0e 'or!s o' donation. (112%) Art. 12%1. 50e delivery o' a rivate docu!ent evidencing a credit, !ade voluntarily by t0e creditor to t0e debtor, i! lies t0e renunciation o' t0e action *0ic0 t0e 'or!er 0ad against t0e latter. I' in order to nulli'y t0is *aiver it s0ould be clai!ed to be ino''icious, t0e debtor and 0is 0eirs !ay u 0old it (6 -o2 ma% "e through other modes2 li:e $a%ment 76 ( is the creditor of 900: to * C2 a third $art%2 $ledged his car to * Ma% the $ledged car "e used as condonation5 (6 Determine first the status of C 1hether he is the owner or for what the $ledge is for .hen state the accessor% v $rinci$al -ot C *ecause ( and * are the $arties in the $rinci$al o"ligation; there is onl% a $resum$tion of C on $art of the accessor% o"ligation of the $ledge CON-USION IG.TS O 0E GE OE0ISSION 76 C owes ( 9M2 he lends the same amount to ( ,s there condonation5 (6 Ma%"e2 if $a%ment of interest is remitted 76 ,f em$lo%ment of interest is found in de"tor C5 ,s it condonation5 (6 -o 76 ,f em$lo%ment of interest is found in de"torPs $ossession2 is there necessaril% condonation5
Art. 12%5. 50e obligation is e9tinguis0ed 'ro! t0e ti!e t0e c0aracters o' creditor and debtor are !erged in t0e sa!e erson. (1192a)
MOTO-Q NOTES
Notes in Civil Law Review 2 76 Ma% it "e made through agreement Art. 12%9. In order t0at co! ensation of $arties5 !ay be ro er, it is necessary( (6 Ma% "e ,t de$ends u$on the intention B< Merger of rights of a cor$oration 76 *% o$eration of law2 can there "e confusion5 (6 *% succession2 creditor died2 de"tor is son or daughter 76 de"tor died2 creditor is an heir2 can confusion ta:e $lace5 (6 there can acce$tance "e2 when there is (1) 50at eac0 one o' t0e obligors be bound rinci ally, and t0at 0e be at t0e sa!e ti!e a rinci al creditor o' t0e ot0er+ (2) 50at bot0 debts consist in a su! o' !oney, or i' t0e t0ings due are consu!able, t0ey be o' t0e sa!e 8ind, and also o' t0e sa!e :uality i' t0e latter 0as been stated+ (3) 50at t0e t*o debts be due+ (/) 50at t0ey be li:uidated and de!andable+ (5) 50at over neit0er o' t0e! t0ere be any retention or controversy, co!!enced by t0ird ersons and co!!unicated in due ti!e to t0e debtor. (1196) 76 ,n com$ensation2 is it a reci$rocal o"ligation5 (6 -ot necessaril% 76 1hen is it a reci$rocal o"ligation5 (6 !eci$rocal o"ligations arise from a single transaction; contract of sale 76 1hat a"out legal com$ensation5 1ill it ta:e $lace in reci$rocal o"ligations5 (6 -ot necessaril% ,n reci$rocal o"ligations2 there can "e none 76 ,n $artial com$ensation2 is de"t totall% e<tinguished5 (6 -o B<tinguished as to at least one de"t 76 ,n com$ensation2 how man% de"ts are involved5
76 ( is inde"ted to * .he de"t is secured "% a mortgage "% M on * #an there "e a confusion of * and M5 (6 -o 76 ,f there is an agreement5 (6 -o ,t will "e su"rogation ,f * assigned his rights to M2 "ut still o"ligation is not e<tinguished 76 1ill confusion e<tinguishment5 result in total
(6 -o ,n cases of 'oint o"ligations2 in 92AA Art. 12%%. ,on'usion does not e9tinguis0 a joint obligation e9ce t as regards t0e s0are corres onding to t0e creditor or debtor in *0o! t0e t*o c0aracters concur. (119/)
CO0+ENSATION 76 ,f 2 or ore $ersons are de"tors and creditors2 will there "e com$ensation5 (6 -o2 the requirements must "e com$lied with (rt 92AN
MOTO-Q NOTES
(6 2 or more de"ts
Notes in Civil Law Review 2 76 Jive an e<am$le of facultative (6 Su$$ort ,nvo:ed "% the one who claims for su$$ort 76 ( o$ened a chec:ing account with a "an:2 he "orrowed mone% with the same "an: ( failed to $a%2 *an: invo:ed com$ensation ( said that his chec:ing account is de$ositum ,s his claim tena"le5 (6 -o ,n a chec:ing account2 the "an: is the creditor2 ( is a de"tor governed "% mutuum2 hence com$ensation canPt ta:e $lace 76 1hen is there a de$osit5 (6 ,f the deliver% is onl% for safe :ee$ing 76 )ther :ind of facultative (6 ,n case of commodatum2 "ailor can invo:e ,n a civil case0$enal2 invo:e "% in'ured $art% #(SB6 /-* v (cero #6" invo8ed( 6o legal co! ensation, t0e credit line *as used, la*yer o' #6" clai!ed t0at credit line *as s0o*n to Acero. you don?t rove a 'act by s0o*ing it to t0e ot0er arty.
76 1hich de"ts will "e e<tinguished5 (6 +ess onerous amount 76 ( owes * the following2 50:2 900:2 A5:2 225:2 900: * owes ( 900: Eow man% of the de"ts will "e totall% e<tinguished5 (6 2 de"ts of ( and de"t of * 76 ( $aid 900: to * ( has the following de"ts to *; 50:2 25:2 90: Eow man% de"ts are e<tinguished5 (6 3 de"ts are e<tinguished /artial com$ensation "ecause there is still a "alance 76 Eow man% :inds of com$ensation are there5 (6 @6 legal2 conventional2 facultative2 'udicial 76 ,n some "oo:s2 there are three; facultative is removed2 wh%5 (6 ,t is a conventional modification onl% of
76 1hat are the other names of com$ensation5 (6 set off or counterclaim 76 -ot reall% the same "ecause5 (6 Set&off and counterclaim must "e invo:ed in courts of law 76 1hat distinguishes conventional5 legal from
76 ( is inde"ted to * with J as guarantor #an J invo:e com$ensation5 (6 -o the% are not de"tors and creditors to each other .he law requires that the% are $rinci$all% "ound #(SB6 S%ci$ K #( 3,( debtors and creditors s0ould be debtors and creditors in t0eir o*n rig0ts.
(6 (s to requirements2 not the same ,n legal2 all requirements should "e $resent2 in conventional2 not necessar% that all requirements are $resent i e different amounts or o"'ects; one de"t is not %et due
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Notes in Civil Law Review 2 76 ( is the creditor of * worth 900: secured "% a mortgage * gave 50: ,f there is a $artial com$ensation2 will 3,( 50ere is no co! ensation *0en the mortgage "e e<tinguished5 Francia aid real ro erty ta9 to t0e )J o' #asay. 50e national govern!ent *as t0e one *0o e9 ro riated. (6 -ot necessaril% ,t de$ends which de"t is most onerous - com$ensation ta:es $lace if de"t "ecame due at the same 76 ,f there is total com$ensation2 will time the mortgage "e e<tinguished5 #(SB6 4rancia v ,(# 76 Monetar% de"ts must arise from contracts5 (6 -ot necessaril% Bg (ttorne%s fees 76 (re all monetar% de"ts su"'ect to com$ensation5 (6 -o #ustom duties H4rancia v ,(#> #(SB6 ,nternational #or$ *an: v ,(# Facts( Hillanueva a lied a loan 'ro! I," 'or 51$. &nly 1$ *as delivered by t0e ban8. 50e loan *as secured by a !ortgage, *0ic0 is 111 $ asset. Hillanueva de osited 1$ to I,". De invo8ed co! ensation. 3,( 3ince t0ere *as a :uestion on t0e 'oreclosure sale, t0ere *as no legal co! ensation. (6 8es Mortgage will "e e<tinguished 76 * is inde"ted to ( for 900: which is interest "earing * gave 50 : to ( 1ill there "e $a%ment of interest even after $a%ment of com$ensation5 (6 De$ends ,f there is total com$ensation2 no interest will "e $aid ,f $artial2 de$ends on whose de"t is "igger 76 1ill $artial com$ensation e<tinguished "% $rescri$tion5 "e
(6 8es /artial com$ensation does not toll the running of the $eriod ASSIGN0ENT O- T.E C E!IT 76 )n ;anuar% 92 20022 ( owes * 900: * assigned the credit to # on ;une 92 2002 #an # demand $a%ment from (5 (6 Determine when the assignment was made; if made after "oth o"ligation was due and demanda"le2 there will alread% "e com$ensation 76 1hat if ( $aid * 50: in Ma% 92 20025 Eow much can # claim5 (6 50: Ee must as: * for the other 50: 76 ,n the same case2 the de"t is demanda"le on Ma% 92 2002 .he credit was assigned to on March 92 2002 Ma% D validl% demand it on the same date5
#(SB6 Solina$ v del !osario Facts( 50e lessee did not ay rentals. De invo8ed t0at t0e lessor 0ad !ade advance!ents. 3,( 6o legal co! ensation because alleged debt *ere being :uestioned in t0e estate roceedings. no legal com$ensation if de"ts arise from de$ositum2 commodatum2 civil lia"ilit% arising from crime
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Notes in Civil Law Review 2 (6 -o .he o"ligation is not %et due 76 ,n A,5IH4 3;"C4,5IH42 o$erative word is su"rogated 1hen does this ha$$en5 76 ( owes * 900: due and demanda"le on Ma% 92 2003 * assigned it to C on ($ril 92 2003 ( (6 9 "% agreement He<$ress>; made the following $a%ments to *6 20:&March 92 2003; 30=&;une 92 2 art 9302 legal su"rogation 2003; @0:&deceme"er 92 2003 )n Ma% 92 20032 how much ma% C validl% a .hird /art% $a%s creditor without demand5 consent of de"tor (6 ,t de$ends6 ,f ( had :nowledge of assignment of C and he consented with reservation2 C ma% claim N0:2 if he consented without reservation2 900: ,f it was without :nowledge of (2 C ma% claim 90: NO1ATION , ,, ,,, Su"'ective0/ersonal )"'ective0!eal Mi<ed " ./ who has an interest $a%s creditor with or without consent of de"tor c #reditor of de"tor $a%s creditor of the same de"tor Art. 1312. It is resu!ed t0at t0ere is legal subrogation( (1) 70en a creditor ays anot0er creditor *0o is re'erred, even *it0out t0e debtor=s 8no*ledge+ (2) 70en a t0ird erson, not interested in t0e obligation, ays *it0 t0e e9 ress or tacit a roval o' t0e debtor+ (3) 70en, even *it0out t0e 8no*ledge o' t0e debtor, a erson interested in t0e 'ul'ill!ent o' t0e obligation ays, *it0out rejudice to t0e e''ects o' con'usion as to t0e latter=s s0are. (1211a) 76 ,n #A33IH4 3;"C4,5IH42 o$erative word is su"stitution 1hen does this ha$$en5 (6 9 B<$romission su"stitution was made without :nowledge or against will of original de"tor 2 delegacion su"stitution was made with :nowledge of de"tor
Art. 1291. &bligations !ay be !odi'ied by( (1) ,0anging t0eir object or rinci al conditions+ (2) 3ubstituting t0e t0e debtor+ erson o'
(3) 3ubrogating a t0ird erson in t0e rig0ts o' t0e creditor. (1213.) I. 3ubjective( ( (ctive third $erson is su"rogated in the rights of the creditor * /assive su"stitution of the $erson of the de"tor L other classifications6 9 e<$ress or im$lied 2 e<tinctive 3 modificator% Bg /rescri$tion
76 ( is inde"ted to * ( mortgaged to * his $ro$ert% worth 900: * is
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Notes in Civil Law Review 2 inde"ted to #2 900: also ,f ( does not e<ce$t if he acted in *ad 4aith $a%2 can # foreclose the mortgage5 or such insolvenc% is of $u"lic :nowledge (6 -o Ee was not su"rogated II. &bjective DB+BJ(#,)- there is alread% su"rogation2 therefore2 # ma% ( #hange in o"'ect no $ro"lem2 foreclose the mortgage eg Mone% to cel$hone Hart 92@5> if there is Art. 12/5. Iation in ay!ent, alread% *0ereby ro erty is alienated to t0e novation creditor in satis'action o' a debt in through !oney, s0all be governed by t0e la* delegacion2 no o' sales. (n) consent of original de"tor is void * #hange in $rinci$al o"ligation6 ,f $a%ment consented to "% a e<$ress (2 no novation2 " im$lied su"rogation H923?&923A> L if 2 o"ligations canPt stand together2 Art. 1236. 50e creditor is not bound to acce t ay!ent or er'or!ance by a t0ird erson *0o 0as no interest in t0e 'ul'ill!ent o' t0e obligation, unless t0ere is a sti ulation to t0e contrary. 70oever ays 'or anot0er !ay de!and 'ro! t0e debtor *0at 0e 0as aid, e9ce t t0at i' 0e aid *it0out t0e 8no*ledge or against t0e *ill o' t0e debtor, 0e can recover only inso'ar as t0e ay!ent 0as been bene'icial to t0e debtor. (1152a) Art. 123%. 70oever ays on be0al' o' t0e debtor *it0out t0e 8no*ledge or against t0e *ill o' t0e latter, cannot co! el t0e creditor to subrogate 0i! in 0is rig0ts, suc0 as t0ose arising 'ro! a !ortgage, guaranty, or enalty (1159a) Bffect of ,nsolvenc% of new de"tor6 ,f # "ecomes insolvent after su"stitution2 ( is no longer lia"le ,f # was alread% insolvent at the time of su"stitution2 ( canPt "e held lia"le if no :nowledge there is novation2 incom$ati"ilit% there is
L there was novation in 4)( and the Killar case .here was a lease contract entered into for 5 %ears (nother contract was entered into for 90 %ears .he contention is that the 2nd agreement is void2 therefore novation is void #(SB6 !onquillo v #( Facts( 50e obligation *as due in 1952, In 196%, debtor ac8no*ledge debt and ro!ised to ay. 3ince it is no* trans'or!ed to a natural obligation, *ill t0e action 'or novation ros er> 3,( 4ven natural obligations !ay be subject o' novation. 76 C is the creditor of (2 * and # for 90M (fter 3 months2 # $aid 90M to C without the :nowledge of ( and * (fter ? months ( and * $aid AM to C Ma% ( and * recover the AM from C5 (6 if voluntaril% given2 the creditor can retain
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Notes in Civil Law Review 2 According to sir( It is actually a rovision s0all a ly to judges ay!ent by !ista8e t0ere'ore solution and govern!ent e9 erts *0o, indebiti. in any !anner *0atsoever, ta8e art in t0e sale+ ,n natural (5) Custices, judges, o"ligations2 rosecuting attorneys, cler8s o' $a%or :nows he su erior and in'erior courts, canPt "e and ot0er o''icers and com$elled to e! loyees connected *it0 t0e $a% "ut ad!inistration o' justice, t0e nonetheless ro erty and rig0ts in litigation $a%s or levied u on an e9ecution be'ore t0e court *it0in *0ose II. CONT ACTS jurisdiction or territory t0ey e9ercise t0eir res ective - while all contracts are 'unctions+ t0is ro0ibition agreements2 not all agreements includes t0e act o' ac:uiring by are contracts assign!ent and s0all a ly to la*yers, *it0 res ect to t0e /rohi"ited6 ro erty and rig0ts *0ic0 !ay be t0e object o' any litigation in *0ic0 t0ey !ay ta8e art by - (uto contracts a $erson virtue o' t0eir ro'ession. contracts himself - article 9@N9 (6) Any ot0ers s ecially dis:uali'ied by la*. (1/59a) Art. 1/91. 50e 'ollo*ing ersons cannot ac:uire by urc0ase, even at a ublic or judicial auction, eit0er in B+BMB-.S )4 ( #)-.!(#.6 erson or t0roug0 t0e !ediation o' anot0er( -atural im$lied warranties (1) 50e guardian, t0e ro erty o' t0e erson or ersons *0o Bssential #onsent2 )"'ect2 !ay be under 0is guardians0i + #onsideration (2) Agents, t0e ro erty *0ose ad!inistration or sale !ay 0ave been entrusted to t0e!, unless t0e consent o' t0e rinci al 0as been given+ (3) 49ecutors and ad!inistrators, t0e ro erty o' t0e estate under ad!inistration+ (/) #ublic o''icers and e! loyees, t0e ro erty o' t0e 3tate or o' any subdivision t0ereo', or o' any govern!ent. o*ned or controlled cor oration, or institution, t0e ad!inistration o' *0ic0 0as been intrusted to t0e!+ t0is (ccidental $a%ment Hcom$ensator%> #E(!(#.B!,S.,#S6 9 (utonom% freedom contract0li"ert% of contract of of interest
Art. 1316. 50e contracting arties !ay establis0 suc0 sti ulations, clauses, ter!s and conditions as t0ey !ay dee! convenient, rovided t0ey are not contrary to la*, !orals, good custo!s, ublic order, or ublic olicy. (1255a)
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Koid waiver6 B<am$le6
Notes in Civil Law Review 2 not contrary to la*, !orals, good custo!s, ublic order, or ublic olicy. (1255a) #(SB6 !e$u"lic v /+D. to co! el #)I5 to enter into inter. connection agree!ents is actually e9 ro riation.
a for agent to waive accounting " $actum commisorium c $artnershi$2 e<clusive $artner from sharing $rofits $actum aliena mortgage $actum aliendro
Kalidit% of contracts of adhesion6 #(SB6 )ng 8u v #( lainti'' boug0t tic8et 'ro! #A), eventually 0e lost 0is baggage. In t0e tic8et it contained a *aiver o' a rig0t.
d /u"lic $olic%6 #(SB6 #ui v (rellano sc0olars0i in la* sc0ool !ust not be contrary to ublic olicy.
3,( *aiver o' a rig0t in a contract o' ad0esion are not considered gladly by t0e 3u re!e ,ourt. 3 Mutualit%6 com$liance goes to validit% and
#(SB6 Saura v Sandico 4scalation clause K e9. ,onstruction contracts. ,reditor 0as rig0t to de!and a 0ig0er co! ensation u on t0e 0a ening o' a contingency. 49. ,ontract o' loan (interest). Acceleration clause K sti ulation *0ereby in an obligation to ay on install!ent, balance s0all auto!atically beco!e due and de!andable *0en debtor 'ails to ay.
Art. 1312. 50e contract !ust bind bot0 contracting arties+ its validity or co! liance cannot be le't to t0e *ill o' one o' t0e!. (1256a) termination "% mere notice valid @ )"ligator%6 Art. 1315. ,ontracts are er'ected by !ere consent, and 'ro! t0at !o!ent t0e arties are bound not only to t0e 'ul'ill!ent o' *0at 0as been e9 ressly sti ulated but also to all t0e conse:uences *0ic0, according to t0eir nature, !ay be in 8ee ing *it0 good 'ait0, usage and la*. (1252) 76 1hen is a contract o"ligator%5 (6 D$on $erfection of the contract 76 1hen is a contract $erfected5 (6 ,t de$ends if it is consensual Hconcurrence "etween the offer
76 1ill an escalation clause "e valid when there is no descalation clause5 (6 ,t is relevant onl% in contracts of loan; onl% effect of circular issued "% the #entral *an: $rovided the escalation clause onl% ha$$ens once a %ear 2 #onsensualit%6 Art. 1316. 50e contracting arties !ay establis0 suc0 sti ulations, clauses, ter!s and conditions as t0ey !ay dee! convenient, rovided t0ey are
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Notes in Civil Law Review 2 and acce$tance>2 real Hli:e de$osit2 <e:uisites( $ledge2 commodatum requires deliver%>2 formal0solemn Hrequires - e9istence o' a valid contract com$liance with certain formalities - 8no*ledge o' contract by t0ird $rescri"ed "% law> ersons - inter'erence by t0ird ersons 5 !elativit%6 *it0out legal justi'ication or e9cuse. Art. 1311. ,ontracts ta8e e''ect only bet*een t0e arties, t0eir assigns and 76 ( has a contract with JM( 0eirs, e9ce t in case *0ere t0e rig0ts Su"sequentl%2 ( entered a contract and obligations arising 'ro! t0e with (*S&#*- ( was in "ad faith Ma% contract are not trans!issible by t0eir (*S #*- "e lia"le5 nature, or by sti ulation or by rovision o' la*. 50e 0eir is not liable (6 -o .o "e lia"le there must "e beyond t0e value o' t0e ro erty 0e malice im$ugned .hird /art% lia"ilit% received 'ro! t0e decedent. does not im$ugn lia"ilit% of de"tor who violated I' a contract s0ould contain so!e 3 #ontracts in fraud of creditors6 sti ulation in 'avor o' a t0ird erson, 0e !ay de!and its 'ul'ill!ent 76 ( is the de"tor of * ( sold his rovided 0e co!!unicated 0is $ro$ert% to # Ma% * rescind the acce tance to t0e obligor be'ore its contract "etween ( and #5 revocation. A !ere incidental bene'it or interest o' a erson is not su''icient. (6 8es 50e contracting arties !ust 0ave clearly and deliberately con'erred a @ Sti$ulation $our atrui sti$ulation 'avor u on a t0ird erson. (125%a) in favor of third $ersons ,t is not the main agreement Jeneral rule6 #ontracts ta:e effect onl% "etween $arties2 their assigns and heirs B<ce$tions6 9 creation of real rights 76 ( mortgaged his land to * and eventuall% ( sold it to # #an # "e "ound "% the mortgage5 (6 8es 2 ,nterference "% a third $art% #(SB6 =aufman v /-* #(SB6 4lorentino v Bncarnacion acce tance !ay be i! lied.
#(SB6 *onifacio "ros v Mira en'orce!ent o' insurance.
CLASSI-ICATION O- CONT ACTS: (6 Degree of De$endence 9> $rinci$al Hagenc%2 $artnershi$> 2> accessor% H!eal Bstate Mortgage2 #hattel Morgtage2 /ledge2 (ntichresis> e<am$le6 cro$ loan scenario
Art. 131/. Any t0ird erson *0o induces anot0er to violate 0is contract s0all be liable 'or da!ages to t0e ot0er contracting arty. (n)
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Notes in Civil Law Review 2 * (s to /erfection @ onerous& alwa%s3 otherwise 9> !eal H+ledge2 Commodatum2 donation 0utuum !e$osit> 5 commutative& em$tio s$ei 2> 4ormal Hantichresis; donation> # /ur$ose Sub;ect matter: D (s to cause L things and rights2 service is not 9> onerous included 2> $ure "eneficience a> gratuitous As to ob;ect: "> lucrative a mova"le " immo<a"le li"eralit% id the consideration 3> remunerator% Conce7ts in9ol9e: seller H$a%ment>; "u%er a> !ecto +aw& $ersonal $ro$ "% Hdeliver> installment B !is: of 4ulfillment "> Maceda& immova"le 9> (leator% c> dou"le sale sale of ho$e em$tio s$ei d> Statute of 4rauds ris: of fulfillment insurance 76 (s to 1)- tangi"le0intangi"le5 life annuit% 2> commutative (6 cor$oreal Hthings>; incor$oreal 4 -ame and Designation Hrights> 9> -ominate 76 relevant as to what conce$t5 2> innominate J (s to su"'ect matter (6 deliver% 9> .hings 2> !ight 76 (s to validit%5 3> Services (6 void2 unenforcea"le2 rescissi"le2 /(7,,,0)ct200A voida"le
III. SALES
& there must "e an agreement to transfer ownershi$ 76 ( sold goods to * for $ur$ose of resale2 8 "ought goods from C for $ersonal consum$tion 1hat law shall govern this contract5 (6 -## and #ode of #ommerce2 (&* commercial sale 8&C civil sale Wnow no distinction2 -## governs C8aracteristics: 9 $rinci$al 2 "ilateral&im$oses o"ligations on two $arties 3 nominate
76 9@5I 2nd $ar6 $rovides for5 (6 a"solute0conditional sale6 W ,n an a"solute sale there is an automatic transfer of ownershi$ while in conditional sale2 there is a reservation of ownershi$ Art. 1/52. "y t0e contract o' sale one o' t0e contracting arties obligates 0i!sel' to trans'er t0e o*ners0i and to deliver a deter!inate t0ing, and t0e ot0er to ay t0ere'or a rice certain in !oney or its e:uivalent. A contract o' sale !ay be absolute or conditional. (1//5a)
76 #onditional sale vs contract to sell
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Notes in Civil Law Review 2 (6 ,n conditional sale2 ownershi$ (6 9st de$ends on manifest intention de$ends on the ha$$ening of condition of $arties and it ta:e $lace "% o$eration of law *arter G value of thing given as a $art ,n contract to sell2 ownershi$ $asses of consideration F mone%0its after full $a%ment $asses .here is no equivalent; if value of watch F900: automatic transfer2 "u%er have right to Sale& if same value as: e<ecute final deed 76 ( granted * e<clusive right Hright to sell within a s$ecific area> to sell 76 ( delivered recei$t to * Qas $artial maong $ants to ,sa"ela2 "efore * $a%ment to m% carR2 received "% D2 could sell2 his store was "urned2 can * "alance $a%a"le at the end of the "e com$elled to $a%5 month2 signed "% ( ,s this contract $ertaining to a (6 contract of sale "ec .here is a contract to sell5 sti$ulation * is a distri"utor0dealer NN NN% W 7uiroga vs /arsons& Qwill (6 -)2 there is alread% transfer of su$$l% the "ed and $a% $rice within a ownershi$2 there was no reservation certain $eriodR -o o"li to remit the as to ownershi$ $rice2 no sti$ulation dacion en ago vs. contract o' sale Wdacion en $ago is a mode of e<tinguishing o"li2 it is a $ecial form of $a%ment; while contract of sale is a source of o"li 76 =o"e X com$anion * is to "u% shoes2 *Pshoes to "e delivered2 u$on $a%ment2 =o"e ordered a $articular shoe (6 =o"e& contract of $iece of wor: *& contract of sale Wcontract for a $iece of wor: under H(ticle9@?A> is also called Massachusetts !ule Art. 1/6%. A contract 'or t0e delivery at a certain rice o' an article *0ic0 t0e vendor in t0e ordinary course o' 0is business !anu'actures or rocures 'or t0e general !ar8et, *0et0er t0e sa!e is on 0and at t0e ti!e or not, is a contract o' sale, but i' t0e goods are to be !anu'actured s ecially 'or t0e custo!er and u on 0is s ecial order, and not 'or t0e general !ar8et, it is a contract 'or a iece o' *or8. (n) ELE0ENTS O- SALE: 9 Consent 2 +rice& consideration as to whom5 .he seller *u%er& acquisition of ownershi$ over the thing 3 O"'ect W#ontracts which are void6 simulated contract H$arties entered> e< .o defraud creditors2 $ro$ert% from hus"and2 a"road ("solutel% voluntaril% wife hide "u%er go
relativel% simulated& wh%5 .o reduce ta< lia"ilit%2 circumvent law on legitime S+ECI-IC +E SONS + O.IBITE! TO ENTE INTO SALE Juardian& a"solute (gent& administration0sale 76 ( inherited $ro$ert% from father to transfer $ro$ert%; e<ecutor to $a% A00:2 status5 (6 valid; (ssignment of rights which ( can validl% sell2 not $art of the estate under 8Ps administration 76 a sued * for recover% of a $arcel of land2 hired law%er2 one %ear after filing2 entered into a contract of sale with * involving the land
76 ( to deliver his car to *2 * to give ( his watch $lus mone%2 900: 1hat law should govern5
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Notes in Civil Law Review 2 (6 not valid o"'ect of sale is su"'ect to ad!inistration o' justice, t0e litigation&actuall% de$ends 1)- the ro erty and rig0ts in litigation case is still $ending or levied u on an e9ecution be'ore t0e court *it0in *0ose 76 9@N9 status of contracts jurisdiction or territory t0ey e9ercise t0eir res ective (6J!6 voida"le 'unctions+ t0is ro0ibition B<ce$t6 agents& su"'ect to ratification includes t0e act o' ac:uiring by /ar 92223 voida"le& can "e ratified assign!ent and s0all a ly to W$rivate interests is involved la*yers, *it0 res ect to t0e @252? void ro erty and rig0ts *0ic0 !ay 92223 can "e ratified "ecause after be t0e object o' any litigation in la$se of inca$acit%2 another contract *0ic0 t0ey !ay ta8e art by ma%"e entered into !u"ias KS Materia virtue o' t0eir ro'ession. 1olfgang vs Martinez (6) Any ot0ers s ecially Art. 1/91. 50e 'ollo*ing ersons dis:uali'ied by la*. (1/59a) cannot ac:uire by urc0ase, even at a ublic or judicial auction, eit0er in erson or t0roug0 t0e !ediation o' 76 ,f "oth $arties are ca$acitated to anot0er( give consent2 contract of sale valid5 (1) 50e guardian, t0e ro erty o' t0e erson or ersons *0o (6 not necessaril% "ecause consent of !ay be under 0is guardians0i + one might had "een vitiated (2) Agents, t0e ro erty *0ose ad!inistration or sale !ay 0ave been entrusted to t0e!, unless t0e consent o' t0e rinci al 0as been given+ (3) 49ecutors and ad!inistrators, t0e ro erty o' t0e estate under ad!inistration+ (/) #ublic o''icers and e! loyees, t0e ro erty o' t0e 3tate or o' any subdivision t0ereo', or o' any govern!ent. o*ned or controlled cor oration, or institution, t0e ad!inistration o' *0ic0 0as been intrusted to t0e!+ t0is rovision s0all a ly to judges and govern!ent e9 erts *0o, in any !anner *0atsoever, ta8e art in t0e sale+ (5) Custices, judges, rosecuting attorneys, cler8s o' su erior and in'erior courts, and ot0er o''icers and e! loyees connected *it0 t0e 76 ( $erson sold a thing to another in re$resentation of another $erson without authorit%2 status5 (6 unenforcea"le 76 can it "e valid5 (6 8es2 in case of statutor% $ower to sell 9505; officious manager2 e<ecutor notar% $u"lic Hwhere $ledgor can go to -/ to have the thing sold> Art. 1515. 3ubject to t0e rovisions o' t0is 5itle, *0ere goods are sold by a erson *0o is not t0e o*ner t0ereo', and *0o does not sell t0e! under aut0ority or *it0 t0e consent o' t0e o*ner, t0e buyer ac:uires no better title to t0e goods t0an t0e seller 0ad, unless t0e o*ner o' t0e goods is by 0is conduct recluded 'ro! denying t0e seller=s aut0ority to sell. 6ot0ing in t0is 5itle, 0o*ever, s0all a''ect( (1) 50e rovisions o' any 'actors= act, recording la*s, or
MOTO-Q NOTES
Notes in Civil Law Review 2 any ot0er rovision o' la* enabling t0e a arent o*ner o' (6 rights and o"ligations arising from goods to dis ose o' t0e! as i' contracts are transmissi"le 0e *ere t0e true o*ner C/-6 -(.D!B2 S.,/2 +(1 Hright in t0ereo'+ s$ecific $artnershi$ $ro$ert%> (2) 50e validity o' any contract o' sale under statutory o*er o' sale or under t0e order o' a court o' co! etent jurisdiction+ (3) #urc0ases !ade in a !erc0ant=s store, or in 'airs, or !ar8ets, in accordance *it0 t0e ,ode o' ,o!!erce and s ecial la*s. (n) 76 (s to things to "e valid su"'ect matter5 (6 determinate2 ca$a"le of "eing determinate e<am$le6 "u%ing a car in the casa outside commerce of man2 cor$se 76 (greement "etween (X*2 ( sell $ala% that will "e harvested this -ovem"er 76 Status of sale (6 sale is valid 76 contract of sale involving alien (6 de$ends; if $rivate agricultural2 if he is seller2 valid ,f he is the "u%er2 J!6 -) C/-6 former natural "orn citizen 76 (ll matters could "e a valid su"'ect matter of sale (6 ever% matter that can "e a su"'ect matter of contracts in general can "e su"'ect matter of sale Hservice2 things2 and rights> Service #(- -). *B ( SD*;B#. M(..B! )4 S(+B 76 4or rights to "e a valid su"'ect matter of sale2 what are the requirements5 Wfor rights& conclusivel% $resumed to "e valid (6 must "e transmissi"le 76 Sale of the right2 :nown as5 (6 assignment of rights 76 if deed of assignment (6 sale5 -ot necessaril%2 if gratuitous& donation2 ma%"e dation in $a%ment2 or a securit% arrangement 76 rights arising from contracts 76 if no $ala% is harvested2 ( is lia"le (6 J!6 8es2 lia"le2 if he was at 4(D+.2 e<ce$t if reason was a 4B 76 sale of a swee$sta:es tic:et status5 (6 de$ends2 if winning tic:et not void 76 ( sold * land with right of re$urchase within one %ear2 3 rd month sold to # what if on the ? th month2 ( offered to re$urchase land status of sale (6 Sale ma%"e valid 9@?5 W 9 things Hownershi$ over the thing> su"'ect to a resolutor% condition ma% "e the o"'ect of the contract of sale 2 validit% of contract requires #onsent2 /rice2 )"'ect2 the fact that it is $resent2 sale is valid Art. 1/65. 50ings subject to a resolutory condition !ay be t0e object o' t0e contract o' sale. (n) 76 1ho will have a "etter right5 (6 J!6 ( BC#B/.6 # was a "u%er in J42 no :nowledge of right of re$urchase and right to re$urchase 1(S -). (--).(.BD
MOTO-Q NOTES

Notes in Civil Law Review 2
76 when is a sale of right $erfected5 (6 u$on meeting consensual contract of the minds2
(6 -o3 Jross inadequac% of $riceGlesion &does not invalidate contract of sale &guardian 2more than T of value2 contract of a"sentee 76 ( X *&$rice fi<ed "% 3rd $erson
76 does it "ind 3rd $erson5 (6 -o2 unless instrument> in writing H$u"lic
(6 void if 3rd $erson refuse0unwilling to fi< the $rice 76 one $eso as value of car (6 ma%"e donation0vitiation of consent 76 $arties to o$tion agreement (6 $romisor2 $romissee; offeror;offeree o$tioner2o$tionee Wearnest mone% de$ends if $erfected as to o"'ect2$rice S)4&goes onl% to enforcea"ilit% not validit% of sale3 9@IAG935?
76 if in $u"lic instrument2 "inding alread%5 (6 onl% requirement in real $ro$ert% 76 deed of sale2 no $rice mentioned2 valid5 (6 sale ma%"e valid 76 agreement (&* s$ecific car2 $rice is 500: %en (6 valid2 if so sti$ulated2 9@5I Qin mone%R Art. 1/52. "y t0e contract o' sale one o' t0e contracting arties obligates 0i!sel' to trans'er t0e o*ners0i and to deliver a deter!inate t0ing, and t0e ot0er to ay t0ere'or a rice certain in !oney or its e:uivalent. 76 if not in mone%2 valid5 (6 Qits equivalentR 76 can seller com$el of la$ad5 (6 sti$ulated2 !(I9I3 Hcurrenc% sti$ulated> re$ealed !( 52N Honl% in $hili$$ine currenc%> 76 wh% !( 52N&"ecause of dollar reserves $ro"lem (6 at that time2 !( I9I32 our dollar reserves im$roved 76 sell s$ecific car2 amount of two academic load2 2 semesters status2 valid5
Art. 1/2%. 50e e9 enses 'or t0e e9ecution and registration o' t0e sale s0all be borne by t0e vendor, unless t0ere is a sti ulation to t0e contrary. (1/55a) Art. 1356. ,ontracts s0all be obligatory, in *0atever 'or! t0ey !ay 0ave been entered into, rovided all t0e essential re:uisites 'or t0eir validity are resent. Do*ever, *0en t0e la* re:uires t0at a contract be in so!e 'or! in order t0at it !ay be valid or en'orceable, or t0at a contract be roved in a certain *ay, t0at re:uire!ent is absolute and indis ensable. In suc0 cases, t0e rig0t o' t0e arties stated in t0e 'ollo*ing article cannot be e9ercised. (12%2a) 76 sale of "all$en 2: worth2valid5 Bnforcea"le5 (6 value Y worth Y $rice2 if sold toZ@00
MOTO-Q NOTES
Notes in Civil Law Review 2 935I& not a requirement for the 76 Ma% a $erson sell something he validit% of contract does not own5 & onl% goes to the enforcea"ilit% (6 (s to validit%2 8es3 Sale will alwa%s "e valid even if not owned; ownershi$ of the thing has nothing to do with validit% Art. 1352. 50e 'ollo*ing !ust a ear in a ublic docu!ent( 76 1hat do %ou call a sale where a $erson ma% sell something he does (1) Acts and contracts *0ic0 not own5 0ave 'or t0eir object t0e creation, trans!ission, !odi'ication or e9tinguis0!ent o' real rig0ts over i!!ovable ro erty+ sales o' real ro erty or o' an interest t0erein a governed by Articles 1/13, 6o. 2, and 1/15+ (2) 50e cession, re udiation or renunciation o' 0ereditary rig0ts or o' t0ose o' t0e conjugal artners0i o' gains+ (3) 50e o*er to ad!inister ro erty, or any ot0er o*er *0ic0 0as 'or its object an act a earing or *0ic0 s0ould a ear in a ublic docu!ent, or s0ould rejudice a t0ird erson+ (/) 50e cession o' actions or rig0ts roceeding 'ro! an act a earing in a ublic docu!ent. All ot0er contracts *0ere t0e a!ount involved e9ceeds 'ive 0undred esos !ust a ear in *riting, even a rivate one. "ut sales o' goods, c0attels or t0ings in action are governed by Articles, 1/13, 6o. 2 and 1/15. (1221a) O+TION founded u$on a consideration& no withdrawal allowed if o$tion contract $erfected2 o$tionee na% file for damages in case of "reach o$tion mone%& se$arated X distinct from the $rice (6 Statutor% /ower to sell& 9505 76 1hen should the seller has the right to sell5 (6 (t the time ownershi$ is to $ass ,f seller has no right to sell2 "u%er acquires no "etter right SCENA IOS /.EN SELLE .AS NO IG.T TO SELL BUT O/NE S.I+ IS T ANS-E E! TO T.E BU,E 9> BS.)//B+ a> equita"le esto$$el0esto$$el in $ais &led 3rd $erson to "elieve[ "> esto$$el "% deed&technical esto$$el &(rt 9@3@ 76 1ho is esto$$ed5 (6 the owner2that the seller has no authorit% to sell c> esto$$el "% record&also technical esto$$el &estafa2owner testified that he is not the owner to free the accused Hsaid authorized even not> 2>MB!#E(-. S.)!B \ J4 L unlawful X stolen&with reim"ursement& (rt 55N L not unlawful& no recover%& (rt 9505 Art. 1515. 3ubject to t0e rovisions o' t0is 5itle, *0ere goods are sold by a
MOTO-Q NOTES
Notes in Civil Law Review 2 erson *0o is not t0e o*ner t0ereo', and *0o does not sell t0e! under aut0ority or *it0 t0e consent o' t0e #(SB6Sun*ros vs KelascoHrefrigerator> o*ner, t0e buyer ac:uires no better title to t0e goods t0an t0e seller 0ad, M"uyer cannot recover i' t0ing *as not unless t0e o*ner o' t0e goods is by 0is lost/stolen conduct recluded 'ro! denying t0e seller=s aut0ority to sell. 76 lad% owned a $ainting w0c was stolen from her2 owner of house "ought from galler% auction2 can she 6ot0ing in t0is 5itle, 0o*ever, s0all recover5 a''ect( (1) 50e rovisions o' any 'actors= act, recording la*s, or any ot0er rovision o' la* enabling t0e a arent o*ner o' goods to dis ose o' t0e! as i' 0e *ere t0e true o*ner t0ereo'+ (2) 50e validity o' any contract o' sale under statutory o*er o' sale or under t0e order o' a court o' co! etent jurisdiction+ (3) #urc0ases !ade in a !erc0ant=s store, or in 'airs, or !ar8ets, in accordance *it0 t0e ,ode o' ,o!!erce and s ecial la*s. (n) (6 8es even w0o reim"ursement $u"lic sale Y galler% auction 76 lad% owned a nec:lace w0c was stolen can the lad% recover5 (6 8es2 (rt 55N 76 ,f deliver% of certificate ownershi$ there is transfer ownershi$&e<6 .#.2 )#. of of
(6 7uasi&tradition&what is delivered is a right &9509
2> S(+B *8 ((//(!B-. )1-B! \ J4 a> recording laws&land registration decree Hnow involves forger%> "> factor actsHold term for agenc%> sale made "% agents c> an% other law& e< goods covered "% -D. incase of "earer document when negotiated 76 ,f "ought from merchant store2 is it $ossi"le to recover5 (6 8es2 if "u%er is in *4 76 ,n J42can owner recover5 (6 8es \reim"ursement
Art. 559. 50e ossession o' !ovable ro erty ac:uired in good 'ait0 is e:uivalent to a title. 6evert0eless, one *0o 0as lost any !ovable or 0as been unla*'ully de rived t0ereo' !ay recover it 'ro! t0e erson in ossession o' t0e sa!e. I' t0e ossessor o' a !ovable lost or *0ic0 t0e o*ner 0as been unla*'ully de rived, 0as ac:uired it in good 'ait0 at a ublic sale, t0e o*ner cannot obtain its return *it0out rei!bursing t0e rice aid t0ere'or. (/6/a) Art. 1511. 7it0 res ect to incor oreal ro erty, t0e rovisions o' t0e 'irst aragra 0 o' article 1/92 s0all govern. In any ot0er case *0erein said rovisions are not a licable, t0e lacing o' t0e titles o' o*ners0i in t0e ossession o' t0e vendee or t0e use by t0e vendee o' 0is rig0ts, *it0 t0e vendor=s consent, s0all be understood as a delivery. (1/6/)
MOTO-Q NOTES
Notes in Civil Law Review 2 76 /u"lic instrument2 signed "% INSTANCES /.E E SELLE STILL notar%2 ownershi$ $asses5 T.E O/NE !ES+ITE !ELI1E , (6 -o2"ecause contrar% intention ma% a$$ear #(SB6M(/(+) KS M(/(+) 76 ,f at the time of the signing2 "u%er has no :nowledge of defect of title of seller5 (6 Ma% not "e considered in J4 "ec J4 should e<ist u$ to the full $a%ment 76 1hen can seller have $ossession if thing not lost0stolen5 (6 ,f he acts as a de$ositar% 76 1hen can there "e a transfer of ownershi$ even w0o deliver%5 (6 -one3 )wnershi$ is transferred onl% u$on deliver% 76 Eow man% :inds of deliver% are there5 (6 .wo :inds 9> (ctual0/h%sical 2>#onstructive a> s%m"olica "> tradition "revi mano c> longa mano d> constitutum $ossesorium e> formal deliver% L there should "e deliver%G contract \ $ossession deliver% of $u"lic instrumentGformal deliver% where seller still in a> conditional sale& ownershi$ $assess u$on fulfillment of condition "ec )wnershi$ was reserved "> sale0trial a$$roval return& ownershi$ is transferred alread% "ut the "u%er ma% revert title "ac: to the seller c> sale on installment& not necessaril% de$ends on sti$ulation 9502H2>& !ead instances when "u%er deem to have acce$ted goods
Art. 1512. 70en goods are delivered to t0e buyer Non sale or returnN to give t0e buyer an o tion to return t0e goods instead o' aying t0e rice, t0e o*ners0i asses to t0e buyer o' delivery, but 0e !ay revest t0e o*ners0i in t0e seller by returning or tendering t0e goods *it0in t0e ti!e 'i9ed in t0e contract, or, i' no ti!e 0as been 'i9ed, *it0in a reasonable ti!e. (n)
76 la$se of 92 hrs will it reasona"le time as acce$tance5
"e
(6 8es2 de$ending on the circumstances i e $erisha"le goods 76 #ontract to ownershi$ $ass5 sell2 when does
76 Deliver% $ossession5
(6 D$on full $a%ment5when5 &e<ecution of final deed of sale 76 if thing is lost0destro%ed2 who is lia"le5 (6 4irst to consider if due to 4B2 who is at 4(D+. J!6 if who is at fault2 lia"le
(6 constitutum $ossessorium S%m"olica& :e% to the $lace where goods are located +onga Manu& wh% cant "e delivered5 &ma% onl% "e de$ositor% ]
MOTO-Q NOTES

76 1hen can "u%er "ears loss5 (6 ,f "u%er is in dela% L!BS /B!,. D)M,-) C/-6 9> sti$ulation of reservation of ownershi$ 2> securit% title&ownershi$ was retained onl% for $ur$oses of securit% &"u%er "ears the lost +aw%ers #oo$erative #ase !OUBLE SALE 76 ( sold to *2 ( sold the same thing to # who too: $ossession (6 de$ends on who registered it in J4 )ne must "e in J4 at the time of the $ossession 76 if "oth (X* did not ta:e $ossession2 did not register2 is it $ossi"le for * to have a "etter right5 (6 if ( was in *4; ,mmova"le6 !egistration of deed of sale in J4 76 ( 9st registered w0 :nowledge of 2nd sale5 (6 ( has a "etter right2 no :nowledge of defect at the time of sale 76( 9st register w0 :nowledge of 9 st sale5 (6 2nd "u%er has "etter right 76 no $ossession2 can 2nd "u%er have a right5 Such as when ( sold to * who leased same land to ( while ( sold the same land to # 1ho has a "etter right5 (6 * has a "etter right * 9st too: $ossession2 * deemed to "e in legal $ossession 76 ( sold land to * Htoo: $ossession> (&&&&&&&&# H'udgment #! sold; *u%er2 registered w0o :nowledge of 9st sale #an * have a "etter right5
(6 8es2 if land is unregistered land2 95@@ does not a$$l%
Art. 15//. I' t0e sa!e t0ing s0ould 0ave been sold to di''erent vendees, t0e o*ners0i s0all be trans'erred to t0e erson *0o !ay 0ave 'irst ta8en ossession t0ereo' in good 'ait0, i' it s0ould be !ovable ro erty. 30ould it be i!!ovable ro erty, t0e o*ners0i s0all belong to t0e erson ac:uiring it *0o in good 'ait0 'irst recorded it in t0e <egistry o' #ro erty. 30ould t0ere be no inscri tion, t0e o*ners0i s0all ertain to t0e erson *0o in good 'ait0 *as 'irst in t0e ossession+ and, in t0e absence t0ereo', to t0e erson *0o resents t0e oldest title, rovided t0ere is good 'ait0. (1/%3)
76 Deliver% to carrierGdeliver% to "u%er5
common X
(6 de$ends on sti$ulation reservation of ownershi$ "% seller
76 (s to "ill of lading2 no deliver% to "u%er when5 (6 on the face of "ill delivera"le to the seller of lading
76 deliver% to the common carrier& deliver% to "u%er5 1hen5 (6 if "ill is not retained "% seller 76 delivered 90 dozens2 I dozens was onl% delivered (6 acce$t I2 re'ect e<cess 76 if less5 (6 if agreed to $artial deliver%2 ma% "e com$elled to acce$t 76 if to deliver I2 onl% delivered A dozens X never delivered 9 dozen
MOTO-Q NOTES

(6 1)- at the time he acce$ted A dozens "u%er :nows that seller will not deliver "alance ,f :nows& contract rate Does not :now& 4MK 76 .o deliver 9 sac: durado2 wagwag2 when is the sale void5 (6 1hen what is to "e delivered is indivisi"le2 "u%er ma% re'ect 76 #all seller demand increase in $rice of sale of land5 (6 ,f lum$ sum&-o3 ,f $er unit measure& 8es3 76 /rice 9=&900 sq m area delivered is greater (6 *u%er ma% acce$t \ $a%ment of contract $rice 76 if onl% N3 sq m (6 !emedies of "u%er a> ma% acce$t2 $ro$ortional reduction "> s$ecific $erformance c> damages Wless than 9090 rescission is not a remed% !escission& remed% if "u%er could $rove that he would not have "ought land if less than[ 76 ,s it $ossi"le for "u%er to have the right to rescind if 900 sq m was delivered (6 8es if land is inferior qualit% or if value is less than 9090 of the value 76 *ound to deliver u$on $erfection of sale (6 -ot necessaril% 9 2 sti$ as to $eriod no $a%ment of $urchase $rice
76 ,f $arties agreed[deliver% after 5 da%s; is he o"liged to ma:e deliver5 1hen not o"liged5 (6 not o"liged to deliver if "u%er does not $a% %et -ot %et o"liged&when the "u%er loses the right to ma:e use of the $eriod 99NI if "u%er "ecame insolvent5&if he delivers a securit% #)A,4 &F I4)IH4<O 9> sti$ulation 2> $lace fi<ed "% usage of trade 3> de$ends on nature of o"'ect determinate&where thing is located at time of $erfection generic& sellerPs $lace DS(JB )4 .!(DB 4 ) * &free on "oard&seller shall onl% "e lia"le to shoulder e<$enses u$ to $ort of origin # , 4 &cost insurance freight &deliver% alread% ta:en $lace at $ort of origin 4 ) * &$ort of originHMla> &$ort of destinationH#e"u> WRthese shi$$ing arrangements are onl% $resum$tions2 $arties ma% still sti$ulate manner X $a%mentR S# OBLIGATION TO /A ANT
#aveat em$tor& not ado$ted "% /hil +aw; De +eon "ec )f im$lied warranties *(! 7DBS.,)-6 76sale of $arcel of land for ,M2 down $a%ment /h$ 9002 "al to "e $aid after squatters will "e evicted2 if within ? mos 2squatters still there2seller shall return 900:2 in ? mos 2value of land dou"led2squatters still there2 seller offered to return /h$900: "u%er did not acce$t2seller refuse to e<ecute final deed of sale2seller filed for rescission (6 9>-)3 seller is not the aggrieved $art%
MOTO-Q NOTES
Notes in Civil Law Review 2 2>H95@5> "u%er given o$tion to dou"le sale in the case of the 2nd refuse to $roceed with contract "u%er> 3> waive the ha$$ening of condition X $roceed with the contract 76 Eow a"out if some"od% was Lmere o$inion not "reach of alread% occu$%ing the land2 acquired it warrant% unless given "% e<$ert "% acquisitive $rescri$tion2 "u%er did Lif warrant% is as to title2fitness X not visit land2 can he hold seller for characters2 "reach of warrant%5 mere o$inionG e<$ress warrant% e< 4ertilizers to %ield "etter harvest (6 -o3 guarantee Y warrant% H46I&<?3 )IA"I)I5O I6 ,A34 &F Art. 15/5. 70ere t0e obligation o' 4HI,5I&6 (see 5A")4 1) eit0er arty to a contract o' sale is subject to any condition *0ic0 is not 1aiver intencionada er'or!ed, suc0 arty !ay re'use to Wwaiver made "% "u%er if he alread% roceed *it0 t0e contract or 0e !ay :new of the defect of the thing *aive er'or!ance o' t0e condition. I' 1aiver consciente t0e ot0er arty 0as ro!ised t0at t0e Wwaiver made "% "u%er where "oth condition s0ould 0a en or be "u%er X seller :new that there was no er'or!ed, suc0 'irst !entioned arty defect on the thing sold !ay also treat t0e non er'or!ance o' H46I&<?3 )IA"I)I5O I6 ,A34 &F t0e condition as a breac0 o' *arranty. 4HI,5I&6 .(*+B 9 I$#)I4I 7A<<A65O B<tent of ,f ,f there is waiver ,f there is no lia"ilit% of v waiver a> warrant% against hidden Kendor in good vendor e faith defects n conci intencio Kend Kendee d ente nada ee in in "ad "> warrant% in case of eviction o Jood faith r c> warrant% of qualit% as to qualit%2 faith i fitness n 7A<<A65O I6 ,A34 &F 4HI,5I&6 76 is it required for "u%er to "e de$rive5 (6 also includes $eaceful $ossession 76 is it $ossi"le if "u%er is not de$rived of ownershi$ "ut de$rived of $ossession5 (6 8es2 in case of #ontract of +ease !B7D,!BMB-.S6 9> there should "e a final 'udgment in favor of 3rd $erson &seller must "e summoned2im$leaded 2> "ased on a right $rior to the sale 3> no valid waiver in the form of waiver intencionada @> act im$uta"le to the seller after the sale Hnon&$a%ment of ta<es2
9> val ue of the thi ng at the ti me of the evi cti on " a d f ai t h
8 B S
8BS
-)
8BS
8BS
2> income or fruits
8 B S
-)
-)
8BS
8BS
3> cost suit
of
8 B S
-)
-)
8BS
8BS
@> e<$enses of contract
8 B S
-)
-)
8BS
8BS
5> damages and interest
8 B S
-)
-)
-)
8BS
MOTO-Q NOTES
Notes in Civil Law Review 2 (6 8es2 if vendor was not aware of the defect if the return $rice is less than 7arranty Against Didden Ie'ects the value of the thing at the time of 9> thing is alread% defective at the loss time of sell 2> he would not have "ought if he 3A)4 &F A6I$A)3 7I5D I4F4,5 :new0"ought for less than the /h$ !edhi"itor%& when even after the sale it cannot "e seen even "% 76 can "u%er not hold seller lia"le for e<$ert hidden defects5 76 ,f 90 "irds29 defective2 can "e (6 8es if "u%er was an e<$ert rescind5 76 1hat if the thing which is defective was lost5 (6 C/- to 99A@2vendor lia"le even through 4B (6 J!6 -o C/-6 if "u%er could $rove that he would not have "ought if he had :nown of the defect&& $resum$tion if "ought in $airs 76 ,f animal died 90 da%s after sale5 4P5465 &F )IA"I)I5O &F 5D4 H46I&< I6 ,A34 &F )&33 &F 5D4 5DI6J 7I5D DIII46 I4F4,53 (344 5A")4 2)
.EB DB4B#. #(DSB )4 +)SS6 4B )! 4(D+. )4 KB-DBB KB-D)! ,S ,- *(D 4(,.E KB-D)! ,S ,J))D 4(,.E
(6 -o2 can recover if died within 3 da%s for a disease e<isting at the time of sale ,f died with contagious disease2 he can recover 6&6.A##A<465 46,;$"<A6,4 B< Bncum"rance on a !oad requirements& 9> non&a$$arent 2> not :nown to the "u%er 76 ,f :nowledge of "u%er can he hold seller lia"le5 (6 8es2 if it was annotated in the title !emed%6 rescission0damages !escission& invo:e within 9 %r from date of contract 76 ,f he filed damages 9 %r X ? mos2 can the case $ros$er5 (6 ,t de$ends on when was the discover%2 damages should "e filed within 9 %r from discover% 76 ,f animals "ought from fairs2 auctions2 no warrant% at all5
KB-D)! ,S ,*(D 4(,.E 9> !B.D!/!,#B
KB-D)! ,S ,J4
8BS
8BS
-)
-)
2> /!,#B0K(+DB (. .EB .,MB )4 +)SS 3> !B4D-D )4 BC/B-SBS )4 #)-.!(#. @> D(M(JBS
-)
-)
8BS
8BS
8BS
8BS
-)
-)
8BS
-)
8BS
-)
5> )-+8 ,-.B!BS.
-)
8BS
-)
-)
76 ,s it $ossi"le for vendor not lia"le for an%thing5
(6 -ot necessaril%2 onl% there is no warrant% as to hidden defects; there
MOTO-Q NOTES
Notes in Civil Law Review 2 is still warrant% as to title X C/-6 warrant% against eviction 9> sti$ulation 2nd hand sale& Qas is where is 2> thing delivered $roduces fruits "asisR 3> if "u%er was alread% in default after B<tra ; demand 76 ,s it correct to sa% that there is Hneeded if there was sti$ulation as to no ,1 in 'udicial0 e<ecution sale5 $a%ment of $rice> contact of sale results to (6 -o3 there is still warrant% "% reci$rocal o"ligation e<$ress $rovision of law& warrant% as to title even to 'udgment de"tor 76 right of ins$ection2 a"solute5 e<ce$t if he was e<em$ted fr Such lia"ilit% "% order of the court (6 -o2 no law $roviding for such .here are $eo$le who cannot *u%er has no right to ins$ection "e lia"le for warranties2 not $reliminar% to acce$tance sale without warrant%0 B< 6 deliver% of mining co of coal B< 6 sheriff to -(/)#)! <IJD53 H46I44 A6I &")IJA5I&63 &F *(! BC(M 7DBS.,)-6 76 909003&&&&&A09003 Hdeliver% of mango $lantation> I09003 Hdelivered> seller sold fruits to C "etween the $eriod A09003& I09003 #an "u%er recover the fruits from C5 (6 953A onl% a$$lies if "oth $arties are alread% o"liged2 not a$$lica"le if there is a sti$ as to deliver% 99?@& A09003&&&&&&509003 *u%er entitled to fruits "ut 2nd $ar 99?@ not %et delivered so2 remed% is for damages
76 ,f he received the goods2 means acce$tance5 (6 not necessaril%2 QreceiveR is onl% $reliminar% to acce$tance2 su"'ect to ins$ection 76 ,f "u%er acce$ted2 discharged of his warrant%5 is seller
(6 -o C/-6 9> sti$ulation 2> "u%er failed to give notice of such "reach within reasona"le time 76 ,f goods alread% at the warehouse of "u%er2 informed seller of refusal2 fire "ro:e out2 can seller "e lia"le5 (6 ,t de$ends whether there has a 'ust cause for refusal ,f no 'ust cause2 ownershi$ is transferred to "u%er2 !BS /B!,. D)M,-) As to #rice &$a%ment to "e made at $lace of deliver% 76 909003 "u%er $aid deliver%&&&&&&&&&&90900@
Art. 153%. 50e vendor is bound to deliver t0e t0ing sold and its accessions and accessories in t0e condition in *0ic0 t0ey *ere u on t0e er'ection o' t0e contract. All t0e 'ruits s0all ertain to t0e vendee 'ro! t0e day on *0ic0 t0e contract *as er'ected. (1/62a) $A,4IA )A7 <A 6652 <4A)5O I635A))$465 ";O4< A,5 Wonl% a$$lies to residential realt% not a$$lica"le to commercial X industrial sale on installmentG sale on credit
(6 can "u%er "e held to $a% %5 -)
MOTO-Q NOTES
Notes in Civil Law Review 2 Wsale on credit not necessaril% sale or (1) A lien on t0e goods or rig0t installment&ma%"e on a straight term to retain t0e! 'or t0e rice "asis *0ile 0e is in ossession o' even onl% one instrument is t0e!+ $aid2 alread% covered "% M(#BD( +(1 (2) In case o' t0e insolvency o' W?0 da%s grace $eriod without t0e buyer, a rig0t o' sto ing interest t0e goods in transitu a'ter 0e if he $aid at least 2 %rs &entitled to 0as arted *it0 t0e ossession #(SE SD!!B-DB! K(+DB&50% $aid o' t0e!+ "% "u%er2 onl% u$ to N0% Jrace /eriod&claimed onl% once (3) A rig0t o' resale as li!ited ever% 5 %rs by t0is 5itle+ there must "e a deliver% to the "u%er of cash surrender value (/) A rig0t to rescind t0e sale not a mere notice as li8e*ise li!ited by t0is 5itle. <4$4II43 F&< "<4A,D &F 7A<<A65O 70ere t0e o*ners0i in t0e goods 0as 9> D-/(,D SB++B! 952? not assed to t0e buyer, t0e un aid a withhold goods seller 0as, in addition to 0is ot0er " sto$$age in transit re!edies a rig0t o' *it00olding c resale delivery si!ilar to and coe9tensive d rescind *it0 0is rig0ts o' lien and sto age in W J!6 the following remedies are transitu *0ere t0e o*ners0i 0as alternative e<ce$t for letter a and assed to t0e buyer. (n) " $A,4IA )A7 76 ( sold a house for 90M&&& down$a%ment of 3M was given while remaining AM will "e $aid in ?0 equal monthl% installment defaulted th th @A 2@N 2 offered to $a% arrears Seller cancel the sale2#ancellation Kalid5 (6 -o /aid for at least 2 %rs Ee is entitled to 9 mo for ever% %ear 4acts6 @? installments 3 da%sGN0 da%s grace $eriod ( is within the grace $eriod to u$date account 76 if seller onl% $aid I0% can he invo:e 952?5 (6 8es3 Art. 1526. 3ubject to t0e rovisions o' t0is 5itle, not*it0standing t0at t0e o*ners0i in t0e goods !ay 0ave assed to t0e buyer, t0e un aid seller o' goods, as suc0, 0as( 76 ,f "u%er $aid seller a chec:2 can 952? "e invo:e5 (6 8es if chec: was dishonored not through the fault of the seller 76 !emedies e<clusive5 (6 -o3 he na% file action for s$ecific $erformance0 damages 76 Bven if ownershi$ had $assed to the "u%er2 ma% seller invo:e 952?5 (6 8es3 B< #onstructive deliver% /)SSBSS)!8 +,B-& right to withhold the goods lien if goods alread% delivered the "u%er X seller not %et $aid Wnot required that "u%er "e insolvent Wseller will not lose lien over the goods &&requiring the "u%er to $a% 35&##AJ4 I6 5<A63I5 &&&seller must have $arted $ossession &&&"u%er is insolvent &&&goods are in transit
MOTO-Q NOTES
Notes in Civil Law Review 2 Eow e<ercised5 *% mere notice to (6 seller3 ,s there un'ust enrichment5 common carrier -o2 it was the "u%er who was reall% at fault if goods are covered "% -D.2-D. should "e 76 ,f the "u%er alread% acquired surrendered to common carrier ownershi$ should seller rescind 9st5 in order for the goods to "e no (6 -o he can automaticall% resale as longer in transit2 "u%er should ruled "% S# =atig"a: vs #( have o"tained it lawfull% 76 S&&&&&&&&&&&&&* <IJD5 5& <43,I6I Eas $ossessor% lien2 Does # &&&same requirements in resale e<ce$t S loses his lien if * sold it to #5 for $erisha"le goods (6 -o Dnless he consented; if * sold <4,5& )A7 1/2/ the goods to # covered "% -D. X was sold "% * to # through negotiation X # "ought it in J4 Art. 1/2/. In a contract o' sale o' ersonal ro erty t0e rice o' *0ic0 is <43A)4 ayable in install!ents, t0e vendor &&&seller must still have the goods !ay e9ercise any o' t0e 'ollo*ing &&&ma%"e e<ercised if "u%er is in re!edies( default for unreasona"le time; if $erisha"le goods are involve2 if "% (1) 49act 'ul'ill!ent o' t0e sti$ulation seller reserves right to obligation, s0ould t0e vendee resale 'ail to ay+ 76 if seller failed to give notice to resale2 valid5 ,f no notice as to date2 time X $lace (6 notice not necessar% as to validit% of resale .hese notice are valid onl% if seller use the ground that "u%er has "een in default for immeasura"le length of time 2nd notice is relevant whether the sale is a J4 sale 76 *u%er has un$aid /h$ 90020002 seller sold goods for A02000 can he recover 30: from "u%er5 (6 8es (s long as the sale is a J4 sale 76 1hat if goods sold for /h$ 95020002 who is entitled to 50:5 (6 seller shall not "e res$onsi"le to the "u%er for whatever $rofit he ma% have o"tained 76 ,f from 900:2 50: was $aid "% "u%er2 remaining goods sold for 900:2 who is entitled5 76 1hat are this recto law X maceda law in connection with installment5 (6 !ecto law& sale X mova"le $ro$ert% on installment 9> BC(#. 4D+4,++MB-.0S/B#,4,# /B!4)!M(-#B 2> #(-#B++(.,)3> 4)!B#+)SD!B Halternative in character> (2) ,ancel t0e sale, s0ould t0e vendee=s 'ailure to ay cover t*o or !ore install!ents+ (3) Foreclose t0e c0attel !ortgage on t0e t0ing sold, i' one 0as been constituted, s0ould t0e vendee=s 'ailure to ay cover t*o or !ore install!ents. In t0is case, 0e s0all 0ave no 'urt0er action against t0e urc0aser to recover any un aid balance o' t0e rice. Any agree!ent to t0e contrary s0all be void. (1/5/.A.a)
MOTO-Q NOTES
Notes in Civil Law Review 2 76 Sale of 'ewelr%290M2 900:2H90 %rs deficienc% Ma% S2 foreclose the real Bqual installment>2"u%er defaulted2 3rd estate mortgage5 installment (6 -o3 9@I@ a$$lica"le (6 e<act fulfillment is the remed% 76 after 9 month S filed action for recover% of "alance5 (6 (s a rule no2 onl% 900: is due C/if therePs an acceleration clause 76 defaulted 3rd installment2 and so with Ath2 can cancellation of sale "e involve5 (6 -o3 cancellation to "e involve 20more consecutive installment is defaulted 76 ,f 3rd2@th2 defaulted2 cancellation2 is seller com$elled to return all amount5 (6 -o3 he ma% retain reasona"le amt for the use of the thing 76 ,s it $ossi"le for S to retain ever%thing5 (6 8es2if there is forfeiture clause 76 ,s it $ossi"le even if there is forfeiture2 S is not a"le to retain ever%thing5 (6 8es if amt is unconsciona"le 76 ( "ought "rand new *MK2 5M installment "asis ( mortgaged his 'ewelries worth 5M to secure fulfillment S foreclose deficienc% of 9M2 can seller recover 9M from "u%er5 (6 8es3 *ec .he ver% thing "ought is not the thing mortgaged 4or 9@I@ to a$$l% ,t should "e the thing "ought w0c is mortgaged *(! 7DBS.,)-6 76 ( "ought car2 seller required real estate mortgage aside from the chattel mortgage covering the car Seller foreclose mortgage on the car2 des$ite foreclosure there is still a <4$4IO &F ";O4< 9> action for s$ecific $erformance&determinate su"stitute $erformance&generic thing 2> action for damage 3> rescission H99N9>& if there was a su"stantial "reach $&I43 &F 4P5I6J;I3D$465 9> 923? ,JB-B!(+& )!D,-(!8 M)DB 2> !BS#,SS,)-&those $rovided a law on sales&s$ecial modes 3> BC.!( S/B#,(+&!BDBM.,)<4I4$#5I&6 9> #)-KB-.,)-(+&availa"le onl% if there was an agreement of re$urchase 76 1ho has this right5 (6 Seller2 owners $revious to the seller2 assignee2heirs2 creditors of seller *(! 7DBS.,)-6 S Hde"totr> sold land to * with right of re$urchase for 50= 76 ,f seller offered 200:2 can "u%er refuse5 (6 8es3 *ec Seller is res$onsi"le also for the useful X necessar% e<$enses 76 )n 909002 sold mango $lantation @0 9002 su$$osed deliver% "ut was onl% delivered on 900900? if there were fruits "etween the $eriod it should had "een delivered2 #an seller "e com$elled to $a% entire 900:5 (6 ,t de$ends if there were fruits at the time of the sale2 determine if "u%er $aid the fruits at the time of sale2 when it comes to re$urchase seller should also $a%
MOTO-Q NOTES
Notes in Civil Law Review 2 76 ,f no fruits at the time of sale2 at (3) 70en u on or a'ter t0e the time of re$urchase there were e9 iration o' t0e rig0t to fruits re urc0ase anot0er instru!ent e9tending t0e eriod o' (6 A5: value of fruits should "e rede! tion or granting a ne* divided into $ro$ortion counted unto eriod is e9ecuted+ the last anniversar% date (/) 70en t0e urc0aser retains *(! BC(M 7DBS.,)-6 'or 0i!sel' a art o' t0e urc0ase rice+ 76 ( sold to * land w0 right of re$urchase2 no fi< $eriod as to (5) 70en t0e vendor binds re$urchase when should it "e5 ,f ( 0i!sel' to ay t0e ta9es on t0e failed to re$urchase2 what will %ou t0ing sold+ suggest to %our client5 W@ %rs2 ownershi$ of the thing (6) In any ot0er case *0ere it delivered to "u%er& not a"solute !ay be 'airly in'erred t0at t0e ownershi$&su"'ect to resolutor% real intention o' t0e arties is condition of $ro$er e<ercise of right of t0at t0e transaction s0all re$urchase secure t0e ay!ent o' a debt if seller a retro or t0e er'or!ance o' any failed2ownershi$ of "u%er "ecomes ot0er obligation. a"solute5 ,f mova"le5 8es ,mmova"le5 8es3 In any o' t0e 'oregoing cases, any !oney, 'ruits, or ot0er bene'it to be 4,+B (#.,)- 4)! #)-S)+,D(.,)received by t0e vendee as rent or )4 .,.+B -BBDBD ot0er*ise s0all be considered as &&&&#onsolidation of title needed 8es interest *0ic0 s0all be subject to t0e with res$ect to immova"le2 necessar% usury la*s. (n) for "u%er to "e a"le to register the $ro$ in his own name 76 1h% would the #! have Dr signed a sale w0 right of re$urchase 76 ,f e<$iration of date of re$urchase2 than a mortgage5 can no longer recover5 (6 -o3 it might "e an equita"le mortgage; file for reformation Hread 9?02 for $resum$tions> (6 to avoid $actum commissorium 76 (gainst whom should re$urchase "e e<ercise5 right of
Art. 1612. 50e contract s0all be resu!ed to be an e:uitable !ortgage, in any o' t0e 'ollo*ing cases( (1) 70en t0e rice o' a sale *it0 rig0t to re urc0ase is unusually inade:uate+ (2) 70en t0e vendor re!ains in ossession as lessee or ot0er*ise+
(6 (n%one who derive the title from "u%er a retro 76 C with right to $urchase 76 ( * # D D sold to C his lot with right of re$urchase2 can C com$el D to re$urchase entire land5 (6 J!6 -o C/-6 ,f the thing is essentiall% an inadmissi"le thing e< *ungalow house2 $ainting w0c is immova"le "% destination
MOTO-Q NOTES
Notes in Civil Law Review 2 2> +BJ(+& $ro$ *e annotated at !D2 !D send a> co&owners& an% $ro$ another notice to co&owner Hdeadma3> "> of ad'acent lnd&immova"le (fter more than a %ear2 "u%er filed for 76 #o&owners $artition2 co&owner received summons2 filed for redem$tion&$ros$er5 ( * (6 8es3 -otice in writing given "% # D vendor not vendee2not !D D donated his land to C2 #an co (lternative answer6 -o3 "ec She owners redeem5 alread% received notices2 the 30 da% $eriod should have alread% run (6 -o3 for redem$tion to e<ist; D)!)M(+ KS #( notice should "e w0 onerous title deed of sale3 76 Same ta"le2 D sold the land to *2 can their "e a right of redem$tion5 (6 -o3 should "e sold to other $erson for redem$tion to arise #(SB6 3 "ros had mother title cancelled[ !D registered still in their names instead of one .#. each2 des$ite actual $artition one of "ro sold2 can the two redeem5 (6 (s ad'acent owner28es3 *ut canPt claim as co&owner 76 ,f onl% 350: is stated in deed of sale2 actual $a%ment is 9M2 $urchase $rice should "e5 (6 350: onl%3 #ontrar% to $u"lic $olic% case of Doromal 76 ,f 9M is stated in deed of sale2 350: interest how much can co&owner "e com$elled to $a% in order to redeem5 (6 9M 76 2 sisters2 (X *2 ( sold her interest to C&H200?> w0o * :nowing * $aid real $ro$ert% ta< X :new of the sale2 informed C right of redem$tion2 can he still redeem5 (6 1hen will the 30 da%s run5 30 da%s fr (ctual :nowledge 76 (&C H"u%er> informed * of the sale2 co&owner did not react; "u%er wanted .JM)ct200A
I1.LEASE
=inds of +ease 9 things& consensual contract; onerous 2 wor: or service Eousehold service& +a"or Bm$lo%ment contract& +a"or #ontract for a $iece of wor:& #ivil #ontract of #arriage& #ommercial 3 !ight #)MM)D(.DM Bssentiall% gratuitous
+B(SB 4or a $rice certain; onerous
76 1hat is the nature of the contract in the boundary syste!5 (6 ,t is contract for the +ease of Service Bm$lo%ment contract which requires the elements of an em$lo%er&em$lo%ee relationshi$ 76 ,s the lease of a sa'ety de osit bo92 considered lease of things5 (6 -) ,t is a s$ecial :ind of de$osit .he lessee has no control over the o"'ect
#haracteristics #(SB Dimaculangan.
MOTO-Q NOTES
Notes in Civil Law Review 2 (/) #ublic o''icers and In lease o' t0ings, a deat0 o' t0e e! loyees, t0e ro erty o' t0e arty does not e9tinguis0 t0e contract 3tate or o' any subdivision o' lease. t0ereo', or o' any govern!ent. ,t is essentiall% onerous o*ned or controlled #onsensual2 -ominate2 *ilateral cor oration, or institution, t0e ad!inistration o' *0ic0 0as #(SB6*agtas& been intrusted to t0e!+ t0is nd rovision s0all a ly to judges 50e 2 bull *as not turned over and govern!ent e9 erts *0o, due to a 'ortuitous event. cross'ire in any !anner *0atsoever, during t0e era o' t0e Du8s. Is it a ta8e art in t0e sale+ contract o' co!!odatu! by *0ic0 t0e govern!ent bears t0e loss> (5) Custices, judges, 3,.50is is a )ease. rosecuting attorneys, cler8s o' "agtas 0as to ay a certain su erior and in'erior courts, breeding 'ee. and ot0er o''icers and e! loyees connected *it0 t0e S$ouses2 guardians and those ad!inistration o' justice, t0e enumerated under (rticle 9@N0 and ro erty and rig0ts in litigation 9@N9 cannot enter into a lease or levied u on an e9ecution contract with each other be'ore t0e court *it0in *0ose jurisdiction or territory t0ey Art. 1/91. 50e 0usband and t0e *i'e e9ercise t0eir res ective cannot sell ro erty to eac0 ot0er, 'unctions+ t0is ro0ibition e9ce t( includes t0e act o' ac:uiring by assign!ent and s0all a ly to (1) 70en a se aration o' la*yers, *it0 res ect to t0e ro erty *as agreed u on in ro erty and rig0ts *0ic0 !ay t0e !arriage settle!ents+ or be t0e object o' any litigation in *0ic0 t0ey !ay ta8e art by (2) 70en t0ere 0as been a virtue o' t0eir ro'ession. judicial se aration or ro erty under Article 191. (1/52a) (6) Any ot0ers s ecially dis:uali'ied by la*. (1/59a) Art. 1/91. 50e 'ollo*ing ersons cannot ac:uire by urc0ase, even at a (s to 4ormalities ublic or judicial auction, eit0er in erson or t0roug0 t0e !ediation o' 76 ( a$$ointed * as his agent ( anot0er( withholds no $ower against * (1) 50e guardian, t0e ro erty granting the latter a /ower of o' t0e erson or ersons *0o (ttorne% * entered into 3 !ay be under 0is guardians0i + contracts[ 9> #ontract of lease of (2) Agents, t0e ro erty *0ose $arcel of land for @ %ears and a ad!inistration or sale !ay rental of ?02000$h$ annuall% 0ave been entrusted to t0e!, 2> #ontract of lease of a unless t0e consent o' t0e $arcel of land with a rental on a rinci al 0as been given+ monthl% "asis of 32000$h$ 3> #ontract of sale of a (3) 49ecutors and $arcel of land for 3< the value ad!inistrators, t0e ro erty o' of the land t0e estate under 1hat is the status of these ad!inistration+ contracts5
MOTO-Q NOTES
Notes in Civil Law Review 2 (6 8es (6 9> Dnenforcea"le 1hat is authorized of * is an act of 76 .here was a lease over a fish$ond administration S/( is needed for 5 %rs .he rental for ne<t %ear will 2> Kalid and *inding !ental of an "e reduced to S Eowever2 the immova"le without a fi<ed $eriod2 the harvest was onl% S due to the re"els same $eriod as $a%ment of rentals; ,t .he lessee contended that the lease is an act of administration onl% $eriod is e<tended for 90 %rs now 1ill 3> Koid (uthorization of the there "e a reduction5 agent is not in writing (6 -one .he right of reduction can #(SB Donald Dee& Iocu!entary onl% "e invo:ed if failure to harvest 'or!alis! is not an ele!ent in was due to an e<traordinar% fortuitous e! loy!ent. event such as war2 fire2 $estilence ,t does not include the intrusion of *(! BC(M 7DBS.,)-( lawless elements2 flood2 and t%$hoon reduction can "e allowed onl% in 76 ( leased a coc:$it to * During the cases where * harvested less than one $endenc% of the lease2 the coc:$it half and that it should had "een due to colla$sed 1ho is lia"le for the fortuitous event colla$se5 lawless element is not a fortuitous event (6 +essor Eis is the dut% to re$air2 unless therePs a sti$ulation to the 76 1ill there "e an e<tension5 contrar% #(SB6Jonzales v Mateo. )essee is liable because 0e agreed to re air. *(! BC(M 7DBS.,)-6 76 ( leased a $arcel of land to * for 90 %ears .here was an agreement to e<tend the +ease and itPs "inding * $ut u$ a 2&store% "uilding D$on e<$iration of the +ease2 * failed to renew the +ease ( filed an e'ectment suit against * * contended that he is a "uilder in good faith thus reim"ursement of the e<$enses (6 *uilder in good faith cant "e invo:ed +essee canPt "uild in the conce$t of an owner Ee is neither entitled to reim"ursement .he o$tion is with the lessor if he o$ts to retain S amount $aid "% the lessee or remove the im$rovements though causing damages Damages must not "e necessar%2 though 76 ,s cha$el a useful im$rovement5 (6 -one +ease is sus$ended during the fortuitous event Ee can claim not to $a% the monthl% rental 4ortuitous event is not a reasona"le ground for e<tension "ut onl% for sus$ension of $a%ment of lease during that $eriod 76 Ma% the lessee su"lease with the consent of the lessor5 (6 8es (s long as it is not $rohi"ited from su"leasing (ssignment of lease is valid if with the consent of the lessor ,n su"lease2 it is valid although a"sent consent of the lessor $rovided it is not $rohi"ited #(SB6Manla$ac v Salazar. A leased 0is 'is0 ond to " till t0e end o' Cune 1, 19/%. Iuring t0e e9istence o' t0e contract, " contracted *it0 ,, t0e latter to 0ave t0e rig0ts in t0e 'is0 ond. 50e contract bet*een " and , *as !ade *it0out A?s consent. 50e 0eirs o' A contended t0at t0e contract is void because it is only an assign!ent.
MOTO-Q NOTES
Notes in Civil Law Review 2 76 ( constructed a "uilding for 5M and 3,. 50e lease agree!ent leased it to * * will "e the lessee for constitutes as an assign!ent only i' 90 %ears for 90020000month (fter t0e lessee absolutely trans'erred all com$letion of the construction2 * will 0is rig0ts to 3rd ersons, dissociating "ecome the owner thereof )n the 5 th rd 0i!sel' in t0e lease. 50e 3 erson %ear2 the entire "uilding was "urned ( beco!es t0e ne* lessee. constructed another "uilding *efore com$letion2 * gave notice to ( that he t0ere s0ould be absolute trans'er will continue the lease #an ( refuse * as lessee5 #(SB6 4rezel vs. $ariano 50ere *as a construction contract (labor and !aterials). FreGel as t0e su lier. A too8 over t0e construction o' t0e building. , de!anded ay!ent 'ro! A. Is ,, t0e o*ner, liable 'or t0e un aid a!ount> 50e clai!s o' , are as 'ollo*s( 50ere?s no rivity bet*een A and ,. " is an agent. 3,. 50ere?s no agency because A?s e9tent o' control over " goes only into t0e result and not t0e !anner, t0ere'ore, it is to be considered as a contract 'or a iece o' *or8. , can recover 'ro! A 3,. &nly to t0e e9tent un aid a!ount by " to ,. 0ig8t be as<e2 in t8e finals= In 1952, A lease to " a 0ouse, in 196% " trans'erred 0is rig0ts to ,. 7ill t0e trans'er be valid and binding against A, t0e lessor> A( It de ends on t0e nature o' t0e trans'er i' it *as assign!ent or sublease. 3,( I' t0e trans'er o' rig0ts is absolute, *0ere lessee cease to be lessee, t0en t0e trans'er is not bindind on t0e lessor 0o*ever i' lessee reserves reversionary interest no !atter 0o* s!all, it *ould be binding on t0e lessor .ermination of +ease o' t0e (6 8es 1ith the original "uilding destro%ed "% a fortuitous event2 the lease contract is e<tinguished2 since there is total destruction. Death of the lessee does not e<tinguish the lease B<ce$t is there is a sti$ulation to the contrar%
*(! BC(M 7DBS.,)-6 76 ( entered into a lease contract with * for 3 %ears .here was a sti$ulation in the contract that * will have the o$tion to "u% the $arcel of land leased "% him Eowever2 * failed to e<ercise the o$tion as sti$ulated in the contract * still continued $a%ing the rentals and ( continues to receive the same *2 now2 e<ercised the o$tion ( refused to sell the land to * #an ( "e com$elled to sell the land5 (6 .here was a renewal of the lease :nown as ,M/+,BD -B1 +B(SB 76 Does * have the right to e<ercise the o$tion5 (6 -o )nl% the terms and conditions JB!M(-B to the +ease contract is deemed renewed )therwise2 it is not renewed ,f $a%ment "e on an annual "asis in the original contract2 the same $eriod and manner of $a%ment will also "e ado$ted in the renewed contract -).B (!.,#+B 9?A0 Art. 16%1. I' at t0e end o' t0e contract t0e lessee s0ould continue enjoying t0e t0ing leased 'or 'i'teen days *it0 t0e ac:uiescence o' t0e lessor, and unless a notice to t0e contrary by
MOTO-Q NOTES
Notes in Civil Law Review 2 eit0er arty 0as reviously been given, it is understood t0at t0ere is an i! lied ne* lease, not 'or t0e eriod o' t0e original contract, but 'or t0e AGENC, 9s .ermination ma% "e "% the will ti!e establis0ed in Articles 1622 and of either $art% 162%. 50e ot0er ter!s o' t0e original /rinci$al& revocation (gent& withdrawal contract s0all be revived. (1566a) /vt0909A0A =,-DS of (JB#86 ($$arent0)stensi"le (genc% "% esto$$el , (#.D(+ (JB-#8 Mac: vs #ams H5>
+A TNE S.I+
,t has entit% a se$arate 'uridical
1. AGENC,
(ctual
76 "a$tismal $ro<%2 agenc%5 (6 -o $olitical and social relations are not included (genc% refers onl% to 'uridical act - *)D-D himself to another Fo"'ective 6 e<ecution of 'uridical act e<tinguish legal relationshi$ such as $a%ment there must "e consent Q agenc% Q includes instrumentalit% as government instrumentalit%
C is clothed with full authorit% to manage restaurant of 8 Howner> C $urchased some items from ^ C was inde"ted to ^ 8Ps defense is that C was not authorized to $urchase Eowever2 C led other $eo$le to "elieve that C has authorit% such as signing as agent S#&Bsto$$el lies 8 is lia"le ,, (//(!B-.0)S.B-S,*+B !allos vs 8angco
#(SB67uiroga K /arsons e<clusive right to sell is an e<clusive agenc%.
Nature of AGENC, 9s.

#onsensual -ominal Ma% "e Jratuitous L"urden6 $rinci$al L$resum$tion6 for com$ensation /re$arator% contract &a means "% which other contracts ma% enter into *ased on trust and confidence .herePs no transfer of ownershi$ "ut onl% transfer of $ossession
SALE
Bssentiall% )nerous
O>ners8i7 2eli9er#.
7asses
u7on
( sent a letter to * authorizing # to "u% a"aca0co$ra * transacted with # #onsequentl%2 from ;an 22 the $urchases remained un$aid * com$lained to ( ( contended that "efore ;an 2 he revo:ed the authorization from # .herefore2 transactions hereafter are not "inding u$on ( S#&,nvo:ed (rticle 9IA3 !evocation is immaterial #Ps transaction has full force and effect in e<ercising authorit% until rescission ,f # is s$eciall% informed of the revocation of the authorization2 * shall also "e informed in the same manner as # & ;*+ !B8BS6 ,f * had actual :nowledge of the revocation2 he cannot hold ( lia"le as it would amount to *ad 4aith
AGENC,
9s. CONT ACT -O +IECE O- /O ?
B<tent of control "% the /rinci$al over the agent is with the !esult and Manner
B<tent of control "% the /rinci$al over the agent is with the !esult onl%
AGENC,
*% agreement
9s. NEGOTIO U0 GESTIO

*% law
AGENC,
9s
GUA !IANS.I+
/erson re$resented inca$acitated is
/erson re$resented must "e ca$acitated
MOTO-Q NOTES
Notes in Civil Law Review 2 76 1hat if ( actuall% caused a notice giving his consent ,f the $rinci$al of $u"lication5 and agent are engaged in the same (6 #an still "e lia"le $ursuant to (rticle "usiness2 there is an im$lied 9IA3 agenc% where"% the agent is deemed to have given his consent Art. 12%3. I' a erson s ecially 76 Mere silence of agent deem in'or!s anot0er or states by ublic acce$ted agenc%5 advertise!ent t0at 0e 0as given a (6 not necessaril% o*er o' attorney to a t0ird erson, ,f $arties are in the same $lace2 no t0e latter t0ereby beco!es a duly $ro"lem2 sti$ulation on the S/( aut0oriGed agent, in t0e 'or!er case governs *it0 res ect to t0e erson *0o Q: if not in the same $lace such as received t0e s ecial in'or!ation, and when using the telegram2 if did not in t0e latter case *it0 regard to any re$l% deem acce$ted5 erson. (6 ,t de$ends on the nature of the "usiness2 if the tas: is also within the 50e o*er s0all continue to be in 'ull nature of the agenc%2 %es 'orce until t0e notice is rescinded in 76 ( authorized * to sell land of ( in t0e sa!e !anner in *0ic0 it *as *aguio2 did not do an%thing2 ,s * an given. (n) agent5 (6 -o 76 Eow a"out if ( gave the letter to * and * acce$ted5 Classifications of Actual Agenc# (6 .here is an im$lied agenc% as to manner of creation (s to consideration or 1 e<$ress consent of "oth com$ensation $arties given 1 )nerous& $resum$tion is for 1 im$lied consideration #(SB6 Dela /ena vs Eidalgo& 1 Jratuitous& lia"ilit% is mitigated in the $art of the A'ter t0e aut0oriGation *as e9ecuted, agent t0e agent a ointed a substitute. 50e rinci al did *(! BC(M 7DBS.,)-6 not0ing to re udiate suc0 #ontract of (genc% as to sco$e of a oint!ent. authorit% 3,.50ere is an I! lied agency by t0e rinci al?s silence or inaction. 50e rinci al is dee!ed to 0ave acce ted t0e ne* agency. (gent 1hen the agent is authorized to sell a $arcel of land and he 'ust stared at the ceiling2 he is -). deemed to have given his consent Eowever2 if the agent acce$ted a s$ecial $ower of attorne% and he did nothing2 it de$ends u$on the :ind of "usiness as to consider it as an im$lied agenc%2 with the agent 9 (cts of administration 2 (cts of strict dominion 76 ,n the sale of !ole<2 the agent has no S/(2 with the act "ind the $rinci$al5 (6 -o (n% act of strict dominion requires an S/( (s to form6 9 )ral 2 1riting 9 )ral 2 1riting 2 1riting
MOTO-Q NOTES
Notes in Civil Law Review 2 76 1h% is the form of agenc% $eculiar5 (6 *ecause it involves two contracts2 (6 ,t de$ends on the authorit% of the the agenc% itself and the contract to agent ,f it is not in writing2 the "e contracted "% the agent contract of sale is void .hus2 # has a "etter right 76 ,f it is in writing2 the authorit% of the agent is e<tinguished * has a "etter right5
76 /rinci$al was in the hos$ital and e<ecuted a J/( with the following6 contact of lease of a $arcel of land with a term contract of lease with no agreement as to term and $a%ment contract of sale for a three times higher than the land (6 Discuss the status6 De$ends on the $ower given2 J/( was onl% given W unenforcea"le if not in a $u"lic instrument W valid and "inding if merel% acts of administration W sale is void under 9IA@ ; SB++,-J ,S (- (#. )4 S.!,#. D)M,-,)-
(6 -ot necessaril% ,f the agent has no :nowledge of the death of the $rinci$al and # is in good faith2 # "eing the 9 st registrant2 therefore2 # has a "etter right -otarization or recording in a $u"lic instrument is not a requirement #(SB6;imenez& C mailed a letter to 8 giving him the authorit% to sell a $arcel of land So 8 sold the same to a third $erson .he letter is sufficient to "ind C ,n a S/(2 the onl% requirement must "e in writing 2 need not "e notarized Essential Elements 9 consent of the $arties 2 o"'ect 3 act within the sco$e @ act in re$resentation of $rinci$al 3 and @ are not necessar% to the validit% of the contract "ut these are the o"ligations of the agent ("sence of these2 (genc% remains valid 3 and @ are the .1,- !B7.S Eow to :now whether it is within or in e<cess of authorit%5 1 #onsider the S/(
7 6 ( is re$resented "% * .here is a lease for 5 %ears and such lease was not $ut into writing (6 4irst2 determine the o"'ect ,f it is $ersonal2 S/( is not required ,f it is an immova"le2 it de$ends on *Ps ca$acit% in the contract of +ease 76 3rd $erson is the lessee and the $rinci$al is the lessor2 S/( is needed Eowever2 if the $rinci$al is the lessee2 authorit% of ( must "e in writing in order for it to "ind *5 (6 -ot necessaril% 4or lease to "e in writing or not2 the $rovisions on Statute of 4rauds must find a$$lication *(! BC(M,-(.,)- 7DBS.,)76 .he deceased $rinci$al authorized the agent to dis$ose of his land .he heirs of the $rinci$al2 however2 sold the 92 hectares to * .he agent sold the same land to # 1ho has the "etter right5
#(SB6 +inan 1hether or not the agent is authorized to sell a $arcel of land
;ustice /erfecto6 under the S/(2 he has no authorit% Jood faith is not within the sco$e
MOTO-Q NOTES
Notes in Civil Law Review 2 !el% on the $rovisions of law& the !ay also be i! lied i' t0e rinci al authorit% to manage the restaurant delivers 0is o*er o' attorney to t0e includes the authorit% to "u% the agent and t0e latter receives it *it0out equi$ments any objection. (n) Art. 1222. 50e li!its o' t0e agent=s aut0ority s0all not be considered e9ceeded s0ould it 0ave been er'or!ed in a !anner !ore advantageous to t0e rinci al t0an t0at s eci'ied by 0i!. (1%15) Art. 12%2. "et*een ersons *0o are absent, t0e acce tance o' t0e agency cannot be i! lied 'ro! t0e silence o' t0e agent, e9ce t( (1) 70en t0e rinci al trans!its 0is o*er o' attorney to t0e agent, *0o receives it *it0out any objection+ (2) 70en t0e rinci al entrusts to 0i! by letter or telegra! a o*er o' attorney *it0 res ect to t0e business in *0ic0 0e is 0abitually engaged as an agent, and 0e did not re ly to t0e letter or telegra!. (n) Art. 1911. 3o 'ar as t0ird ersons are concerned, an act is dee!ed to 0ave been er'or!ed *it0in t0e sco e o' t0e agent=s aut0ority, i' suc0 act is *it0in t0e ter!s o' t0e o*er o' attorney, as *ritten, even i' t0e agent 0as in 'act e9ceeded t0e li!its o' 0is aut0ority according to an understanding bet*een t0e rinci al and t0e agent. (n) Art. 1912. A t0ird erson *it0 *0o! t0e agent *is0es to contract on be0al' o' t0e rinci al !ay re:uire t0e resentation o' t0e o*er o' attorney, or t0e instructions as regards t0e agency. #rivate or secret orders and instructions o' t0e rinci al do not rejudice t0ird ersons *0o 0ave relied u on t0e o*er o' attorney or instructions s0o*n t0e!. (n) ig8ts Agent an2 Obligations of t8e
(rticle 9II2& #onsidered within if it is to the advantage of the /rinci$al #(SB6,nsular Drug& .he agentPs authorit% to collect mone% does not include encashing or endorsing of chec: Munici$alit% of ,lo&ilo vs Bvangelista .he authorit% to hire a law%er includes authorit% to $a% said law%er ,f the agentPs authorit% to "orrow mone% and mortgage2 he cannot use it to satisf% his own de"ts 76 ( authorized * to "orrow mone% from an% "an:2 agent "orrowed mone% in his name to "u% land2 defaulted2 can "an: go after the $rinci$al (6 -o .hird $erson ma% have recourse against $rinci$al e<ce$t if it was $ro$ert% of $rinci$al which was involve 76 S/( ma% "e oral5 (6 -)3 ,t is a written authorization as the following $rovision $rovides6 9IA9 QdeliversR 9IA2 QtransmitR 9N00 9N02 Q$resentationR
Art. 12%1. "et*een ersons *0o are resent, t0e acce tance o' t0e agency
Eis main o"ligation is to #(!!8 )D. .EB (JB-#8 ,f the $rinci$al died[ J!6 .he agenc% is e<tinguished
MOTO-Q NOTES
Notes in Civil Law Review 2 BC#6 ,f it will endanger the BC#6 1ithout consent of the (genc%2 the latter shall "e $rinci$al2 the sale is not void "ut the continued $rinci$al holds him lia"le as sale in cash "asis B<6 C sold the car to 8 with the "rea:s in a defective condition 76 1hen can agent "e held lia"le5 and without the $rinci$alPs (6 1hen he "ound himself :nowledge2 8 "ought the car B<ce$tion6 .herefore2 the $rinci$al 9 1hen the $rinci$al ratified incurred loss0damage 2 1hen 3rd $erson informed H(rt 9III& (n agent shall not that agent is acting "e%ond the carr% out an agenc% if its sco$e of his authorit% e<ecution would manifestl% 3 1hen agent informed 3rd result in loss or damage to the $erson such as when he $rinci$al > $romise to secure ratification and was not a"le to Art. 1222. An agent s0all not carry out an agency i' its e9ecution *ould !ani'estly result in loss or da!age to t0e rinci al. (n) #ase +aw 76 / authorized ( too sell his house and ( introduced $ros$ective "u%er .he "u%er gave him 9= / terminated the authorit% of the agent and the agent went to !D and found out that a sale was consummated ( demanded commission2 can the case $ros$er5 S#6 -o 4ailure of agent to deliver $rinci$al even not owing to him the given "% the "u%er constitute forfeiture of agentPs right commission to 9: a to
+ia"ilit% of (gents to 3rd $ersons6 /ersonall% "ound himself (cted negligentl% (cted outside the sco$e of his authorit% Bven if the agent acted outside the sco$e of his authorit%2 the agent is -). lia"le if6 .he $rinci$al ratified the agentPs acts .he 3rd $erson was informed "% the agent that he acted outside .he 3rd $erson was aware thereof #(SB6Domingo vs Domingo& 1hatever commission is received "% the agent as a consequence of his agenc%2 al"eit the a"sence of :nowledge of the $rinci$al of the agreement "etween the 3rd $erson and the agent2 the latter shall give to the $rinci$al whatever he received .he agent is not the insurer of the $rinci$alPs success in "usiness J!6 .he agent cannot sell the goods on credit
#ase +aw6 76 (gent to collect /I00 he was a"le to collect onl% /500 and deducted 20% as commission S#6 .he act of the agent constitutes estafa *(! BC(M 7DBS.,)-6 76 ( authorized * to sell $ro$ert% in #e"u2 * a$$ointed a su"agent #an * a$$oint a su"agent5 D/+(1 #enter6 (6 8es2 under 9IN2 if it was not $rohi"ited W Sir said with due res$ect to the D/ law #enter2 the answer is erroneous Su"agent does not ta:e the relationshi$ of * as agent; assistant agent
MOTO-Q NOTES
Notes in Civil Law Review 2 Art. 1292. 50e agent !ay a oint a substitute i' t0e rinci al 0as not - Do*ever, i' it 0a ened today, ro0ibited 0i! 'ro! doing so+ but 0e Agent is considered to be s0all be res onsible 'or t0e acts o' t0e negligent. I' it 0a ened in t0e substitute( 61?s, t0e agent is not liable (1) 70en 0e *as not given t0e o*er to a oint one+ - 50e 3, 0eld t0at t0e agent is liable because t0ere?s negligence. (2) 70en 0e *as given suc0 )n Death o*er, but *it0out designating Bffect of death of the agent t0e erson, and t0e erson ,t will a"solutel% a ointed *as notoriously e<tinguish the agenc% ,f inco! etent or insolvent. the agenc% is for the "enefit of a 3rd $erson2 All acts o' t0e substitute a ointed the agenc% will continue against t0e ro0ibition o' t0e rinci al to "e in full force and s0all be void. (1%21) effect des$ite the death of the $rinci$al Su"stitute Q:a$alit ni%aR (rticle 9IN2 1 Bffect of death of the shall a$$l% $rinci$al L i' rinci al *as in'or!ed o' t0e ,f without :nowledge substitute Article 1292 s0all not a ly and the agent is in good faith2 the agenc% is 0o2es of E@tinguis8ment e<tinguished "ut the act (E!/A !* of registration in good faith even after the death of the $rinci$al is B& e<$iration of the $eriod valid as the law sa%s so D& death 1& withdrawal )n !evocation (& accom$lishment 1 Ma% "e made an%time; at !& revocation will D& dissolution of entit% 1 76 ,f therePs a $eriod2 will not e<clusive2 (rticle 9239 also the revocation "efore the a$$lies sti$ulated $eriod hold the )ther modes ma% a$$l% to agenc% $rinci$al lia"le5 *(! BC(M 7DBS.,)76 C authorized 8 to sell a $endant with diamond .he $endant was ro""ed C sued 8 8Ps defense is ro""er% (6 (ustria #ase & <obbery is a 'ortuitous event. 50e er etrators need convicted o' robbery. not be (6 -) #(SB6*arreto Agency is based on trust and con'idence t0ere'ore, t0e rinci al can revo8e anyti!e. # can only be 0eld liable 'or da!ages i' 0e acted in bad 'ait0. #(SB6 #ollongco A aut0oriGed " to sell t0e land 'or 111$. " did not re!it t0e 111$. 70at *as agreed *as t0at " *ill be t0e agent o' A in subdividing t0e land and constituting t0e 0ouse. 50e roceeds
For a 'ortuitous event to be a valid de'ense, t0ere !ust be no concurrent event.
MOTO-Q NOTES
Notes in Civil Law Review 2 A: 7o8 )orporation and partnership #a" *ill go to A as ay!ent. 50e aut0ority organi5e a 0oint venture +ut the" cannot granted *as 'or 11 yrs. &n t0e 5 t0 yr., enter into partnership contract A revo8ed t0e aut0ority given to ". , -ir said that )orporation can enter into a 7as t0e revocation valid> contract of partnership if there (as an express grant of po(er in its articles of 3,( 6&. 50e agency is *as cou led incorporation$ 2.ecson vs$ Bola9os3 *it0 interest and as suc0, it cannot be /: :hat is the effect of illegalit" of contract6 validly revo8ed a'ter t0e interest )an a partner recover (hat he had given if ceases+ !eans o' 'ul'illing interest cause (as illegal6 !ust be di''erent 'ro! t0e A: 4es, +ecause it (ill result in un0ust co!!issioner given+ very interest t0at enrich#ent$ an agent is clai!ing s0ould be stated /; <o( a+out if +oth (as in pari delicto6 at t0e 3#A *it0out rejudice to 0is A: =f there (as repudiation +efore there (as liability i' revocation *as done in bad an" da#age, the court is in its discretion to 'ait0 allo( recover" /vt0909A0A BAR /%E-.=>7: A and B put up a car repair shop$ A contri+uted #one" (hile B contri+uted his services$ A like(ise put up a coffee shop on the left side of the car repair shop$ B like(ise engaged in another +usiness of his o(n$ Are the" legall" allo(ed to venture into such +usinesses6 A7-:ER: A under the facts can engage in such services since he is onl" a capitalist partner$ As to B, since he is an industrial partner, he is prohi+ited fro# engaging in an" kind of +usiness (ithout the consent of the other partners$ , &artnership #a" +e constituted in an" other for#$ * Article ??@2 /: <o( a+out Ard person (ho contracted (ith &artnership (ith unla(ful o+0ect, can recover6 A: 4es, as long as no kno(ledge of the illegalit" :hen one or #ore parties contri+ute an i##ovea+le =f there is no inventor" * B>=C; =f there is an inventor", +ut not put in (riting =f such partnership is not put into pu+lic instru#ent -D it (ill not affect the validit" of the partnership agree#ent, though it #a" affect the greater efficac" or the enforcea+ilit" of the contract$
VI. PARTNERSHIP
BAR EXAM: A used all his savings to put up a restaurant, B gave A 4k as financial assistance in exchange of 2 ! profits, 22 "ears after B filed action de#anding profits$ A denied and invoked prescription$ A: %& 'a( )enter * )ontract of &artneship exists +ecause the" contri+uted to a co##on fund plus there (as a stipulation as to profit$ ,-ir said, no contract of partnership exists$ .here (as no agree#ent to contri+ute to a co##on fund, onl" financial assistance$ /: &artnership vs$ )o-o(nership A: )ontract of partnership is created +" #ere agree#ent (hile co-o(nership is created +" operation of la($ Essential Ele#ent: , o+0ect is to engage in a la(ful activit" 1eneral &artnership and 'i#ited &artnership 2relevant onl" in 'i#ited &artnership3 /: )an the spouses enter into a li#ited partnership and engage in real estate +usiness A: 4es, prohi+ition is onl" on universal partnership /: )an t(o corporations organi5e a general partnership, can a corporation enter into a partnership6
MOTO-Q NOTES
Notes in Civil Law Review 2 )ase: <ernande5 v$ Angeles , Eor# is not necessar" for the validit", #a"+e necessar" for enforcea+ilit" ,E7.=.4 .<E>R4F'E1A' &ER->7 .<E>R4 #eans that a partnership has a 0uridical personalit" separate and distinct fro# the partners A general partner can +e an industrial partner$ )an a partner +e +oth capitalist and industrial partner at the sa#e ti#e6 4E )an a li#ited partner +e +oth an industrial and a capitalist partner at the sa#e ti#e6 7> )'A--=E=)A.=>7 >E &AR.7ER-<=&: =$ As to >+0ect: a3 present propert" +3 profits ==$ a3 1eneral , all general partners +3 'i#ited , one or #ore general and one or #ore li#ited partner; a li#ited partner 2has no right to partake in the #anage#ent )o##ercial &artnership , governed +" )ode of )o##erce ===$ As to ter#: a3 #a"+e for a particular undertaking 2>rtega vs$ )A3 Admission of a new partner ,=f given a Guestion concerning the lia+ilit" of a ne(l"-ad#itted partner for a partnership o+ligation, ask, H(hen (as the partnership o+ligation incurred6 :as it incurred &R=>R .> F AE.ER the ne( partnerIs ad#ission to the partnership6 /: AB) partnership ad#itted C as ne( partner$ .he AB) partnership incurred the follo(ing lia+ilities$ AB)- ? ; X- A J, AK k$ :hat is the lia+ilit" of C as a ne( partner6 =f A is a #anaging partner$ A: 1R: up to capital contri+ution onl" unless he +ound hi#self to +e solidaril" lia+le 7>.A BE7E: application of proportionate sharing: a3 if A is a general partner +3 +oth de+ts are due and de#anda+le
c3 receipt (as given in the na#e of the partnership d3 pa"#ent should +e applied to the #ost onerous '=M=.EC &AR.7ER =- '=AB'E :<E7: a) he participated in the #anage#ent b) if surna#e appears in the partnership na#e except; a3 alread" existing surna#e +3 if also the surna#e of a general partnership c3 if at the sa#e ti#e general or li#ited partner , Article ?LM2 su+agent is not eGuivalent to su+stitute , in having a su+stitute, #ust +e (ith the kno(ledge of the principal$ 2Ce la &e9a vs$ <idalgo3 Proportional Application of Debts:

>ne o+taining is a #anaging partner; Both de+ts are due and de#anda+le; =f the partner receipted the a#ount in the na#e of the partnership estoppel agenc" =f the de+t is #ore onerous
Property Rig ts of a Partner
see the A #a0or classification of the propert" rights of partners plus right to for#al accounting plus the right to the access of partnership +ook
Rights in specific partnership propert" N a partner is co-o(ner (ith his partners of specific partnership propert"; see ?L?? N co-o(nership sui generis$
MOTO-Q NOTES
Notes in Civil Law Review 2 )f$ co-o(nership in partnership la( and coo(nership in propert" la($ =n the for#er, a co-o(ner "AR #$ESTI%N& ' (ind)strial partner*+ , #a" sell his share even (ind)strial partner*+ - (P ./ 0* and 1 (P 2/ (ithout the kno(ledge and 0* entered into a partners ip agreement. consent of the other co' and , will act as managing partners. o(ners, (hereas, in T ereafter+ two persons were appointed&. partnership la(, such (ould ' and , appointed t e SE3RETAR-+ one not +e allo(ed$ of t e two persons appointed. - and 1 =nterest in partnership N owe4er opposed s)c appointment. T e pertains to the share in A33%$NTANT+ t e ot er person named+ profits and surplus$ was appointed by ' and 1+ w ose appointment was owe4er opposed by , and -. ' ose appointment will bind t e S aring of t e Partners in t e Profits and Partners ip5 in t e !osses A7-:ER: .he secretar"Is appoint#ent (ill if there is a -.=&%'A.=>7 2except +ind the partnership$ As to the accountant, it (hen there is a stipulation (here should +e resolved as to the partnership one or #ore of the parties shall +e having the controlling interest, such excluded fro# the profits, the controlling interest +eing dependent on the stipulation shall +e B>=C3 aggregate capital contri+utions of those (ho if there is 7> -.=&%'A.=>7 , appointed vis-Q-vis those (ho opposed$ sharing shall +e in proportion to the capital contri+utions$ :hat a+out the =ndustrial &artner6 ND give hi# the value of his service; 6ANA7E6ENT ARRAN7E6ENTS the +alance of (hich should +e >ne #anaging partner distri+utes to the capitalist partners -olidar" #anage#ent in proportion to their capital Roint Manage#ent contri+utions$ &artner as Agent
RI7HTS8 %"!I7ATI%NS %9 PARTNERS BAR /%E-.=>7: A, B, and ) entered into a partnership$ Agreed to &hpAO share profits eGuall"$ ) assigned his interest in the partnership to X$ .herefore, X de#anded share in the profits and #anage#ent$ Are these de#ands of X legall" 0ustifia+le6 A7-:ER: As to the #anage#ent, an assignee cannot participate in the #anage#ent, not even right to accessP As to the share in the profits, an assignee has the right to receive the profits the assignor (ould have received$ As to interest, a partner #a" assign ho(ever li#ited onl" to the receipt of such a#ount and nothing #ore$ .herefore, to receive &<p ?2 k 2AO FA3
To ma:e good is promise to contrib)te 6%NE- PR%PERTIND$STR=f #one" N eGuall", unless there is a stipulation =f in default, he is a de+tor of the partnership plus interest plus da#ages 2iN ?2!3 =f propert" N ask (hat (as actuall" contri+uted$ :as it the propert" itself or the use of such propert"$ =f propert" itself ND transfer o(nership plus o+ligation to (arrant in case of eviction$ =f thing (as lost +efore deliver", the partner +ears the loss, RE- &ER=. C>M=7>$ -ee Exceptions 2?3 E%71=B'E 223 E>R -A'E 2A3 :=.< A&&RA=-A'$ &artnership +ears the loss if possession is (ith partnership alread"$
MOTO-Q NOTES
Notes in Civil Law Review 2 =f services, -&E)=E=) '=AB='=.4 A- .>: )ontractual >+iligation N 0oint &ERE>RMA7)E :>%'C 7>. Roint and solidaril" ?L22 T ?L2A * tortiousF '=E$ Re#ed" is to de#and the value (rongful acts of partners of service plus da#ages incurred +" partnership /: Bought set of -)RA in the account of the &R>&ER.4 R=1<.-: partnership, can partnership +e lia+le6 ?3 specific partnership propert" , a partners A: =t depends if the act is for the apparent is a co-o(ner as to his co-parners not carr"ing of the usual +usiness of partnership$ partnership;l co-o(nership is sui generis /: )an partnership +e lia+le even if not 23 interest related to the +usiness6 A3 participate A: 4es, if such part" (as not authori5ed /: )an a creditor of a co-o(ner lev" such C=-->'%.=>7: interest of a co-o(ner in a partnership land , change in relation (here partner ceases to A: 4es, +ut he cannot do so if inde+ted to +e associated in carr"ing on the +usiness of partnership partnership ,#arriage of partners not a ground /: : and X are #anaging partners, 4-K k, S-2 k$ : and X (ere appointed as secretar" Entry of a new Partner +" 2 persons, opposed to +" 4 and S; accountant appointed +" : and S +ut opposed +" X and 4 1eneral Rule: =t (ill dissolve A: =n the ?st case, 4S has no right to oppose$ the partnership =n the second case, controlling partners shall Exceptions: prevail +ased on capital contri+ution$ a3 act is necessar" to (ing Appoint#ent shall not +e valid having up partnership affairs opposed +" 4 (ho has controlling interest$ +3 .his case is called su+sidiar" #anage#ent 3A$SES %9 DISS%!$TI%N ?3 extra0udicial a3 voluntar" , 7o$ ? T 2 of Article 9ID$3IAR- %"!I7ATI%NS; <onest" and ?LA 1ood faith starts during the negotiation +3 involuntar" , 7o$ A-@ stage$ >+ligation (ould continue not onl" up 23 0udicial Article ?LA? to dissolution +ut also until ter#ination$ /: A B ) assigned (hole interest to X against the (ill of A T B and decided to RE6EDIES %9 A N%N<DE9A$!TIN7 dissolve the partnership, X filed for a PARTNER dissolution, (hich dissolution (ill +e valid6 A: .hat #ade +" A T B is valid$ X (as #ere -pecific perfor#ance assignee, no legal interest to file dissolution Cissolution for he is not +" la( a partner$ RE-)=--=>7 =- 7>. A REMEC4 CEA.< >E A &AR.7ER: AS T% DISTRI"$TI%N& , if general, partnership is not extinguished =As to stipulation, if it excludes a partner, if +i5 nis continued or not stated due to stipulation is void not the partnership$ unani#ous consent$ S are in t e !osses& 1. determine agreement EEEE). of C=-->'%.=>7: /: if one partner is excluded valid6 , ter#ination of authorit" of partners$ A: depends: if capitalist, stipulation is void; if industrial partner (as excluded * valid a#ong partners +ut void as to third persons$ *Article ?L?O 2$ if no stipulation to losses, use stipulation on the sharing of profits A$ no stipulation at all N share in their capital contri+ution
MOTO-Q NOTES

'=AB='=.4 >E -%B-.=.%.E
7>. 1=BE7 &>:ER .> A&&>=7.
transaction of the sale is on credit not all credit transactions are contracts H'udicial de$osits2 legal de$osits> +oan consider first the :ind whether mutuum or commodatum mutuum or sim$le loan& the agreement "etween the $arties to constitute a loan is alread% a "inding agreement2 however2 unless it is delivered there is no $erfected contract of loan %et ,f the contract of loan is not %et $erfected2 cannot "e revo:ed ,n mutuum2 if without e<$ress sti$ulation2 contract is com$ensator% case6 !e$ vs *agtas
All acts of the su+stitute appointed against the prohi+ition of the principal shall +e void
'=AB'E if su+stitute acted outside the scope of authorit" or there is +ad faith or negligence on the part of the su+stitute
7>. '=AB'E if the su+stitute acted (ithin the scope of authori5ation representation of the principal and acted (ith due diligence and in good faith , the agent is an insurer of success of +usiness of principal not the the the
EEEE).- >E A&&>=7ME7. >E -%B-.=.%.EF'=AB='=.4 =7 CAMA1E .> &R=7)=&A'

1=BE7 &>:ER .> A&&>=7.
Cesignated 7ot designated
7ot lia+le as agent shall 7>. +e responsi+le for the acts of the su+stitute if the su+stitute is notoriousl" inco#petent or insolvent
7ot lia+le unless he kne( that the designated person is notoriousl" inco#petent or alread" insolvent
Agent shall +e responsi+le for the acts of the su+stitute if su+stitute is notoriousl" inco#petent or insolvent
1II. C E!IT T ANSACTIONS

not the same as "ailment not all credit transactions are "ailment in "ailment2 there has to "e a deliver% Hde$osit2 loan2 mutuum2 commodatum> in some credit transactions2 deliver% is not necessar% Hguarant%2 mortgage> sale ma% "e a credit

case6 Soccoro& 1hat is the effect of a declaration that the interest is unconsciona"le5 Still lia"le to $a% interest "ut at the legal rate in a contract of commodatum2 the "ailor need not "e the owner "ecause there is no transfer of ownershi$ in mutuum2 lender has to "e the owner $recarium2 a s$ecial form of commodatum wherein the "ailor ma% demand the thing at will H9N@A> !( I9I3 all monetar% o"ligations shall "e settled in /hili$$ine currenc% which is the legal tender Eowever2 $arties ma% agree that the o"ligation "e settled in other currencies thing $ledged must "e delivered to the creditor unli:e in chattel mortgage and real estate mortgage
MOTO-Q NOTES

!e7osit essentiall% gratuitous2 unless sti$ulated otherwise irregular de$osits& a de$ositar% has the right to use the thing in de$osit2 o"'ect cannot refer to future thing "ecause it requires deliver%
suret%& insures the solvenc% of the de"t +le2ge) 0ortgage free dis$osition means that the mortgagor should "e ca$acitated $ledge ma% "e $erfected even if deliver% is merel% constructive lia"ilit% of the $ledgor or mortgagor is onl% u$ to the value of the $ledged0 mortgaged $ro$ert% -awala na sa :an%a %ung $ro$ert%2 :a%a tama na %un unless e<$ressl% sti$ulated otherwise creditor cannot recover if $ro$ert% is covered "% !ecto +aw no right of redem$tion in chattel mortgage and $ledge
characteristics
a> $rinci$al "> real c> gratuitous or onerous :inds of de$osit a> 'udicial "> e<tra&'udicial
i #onventional 0 voluntar% ii -ecessar% iii +egal
5A")4 1 Guarant# covered "% the Statute of 4rauds
/+BDJB (ll are accessor% contracts ( $ledge or mortgage cannot e<ist without a valid o"ligation !eal (rticle 939?2 (rticle 20N3> *ut a $romise to constitute a $ledge gives rise to a $ersonal action "etween the $arties; $u"lic interest unilateral #E(..B+ M)!.J(JB -evertheless2 a $ledgor or mortgagor ma%"e constituted to guarantee the $erformance of a voida"le0 unenforcea"le contract ,t ma% guarantee a natural o"ligation Solemn or 4ormal HDe leon> #M !egistration is inde$ensa"le ,f not recorded2 "inding on the $arties /romise to constitute mortgage (ffidavit of J4 to "inf 3rd $arties ,f not e<ecuted2 mortgage ma% still "ind third $ersons if the latter had :nowledge of the $romise to constitute mortgage Solemn HKitug> Must "e recorded2 if not "inding to $arties $romiseW $ersonal0action Dnilateral
9 /ersonal& $ersonal commitment to answer for the de"t2 default of another 2 !eal guarantor delivers collateral a $ledge " chattel mortgage c real estate mortgage d antichresis continuing guarant%
(rt 2053
the onl% $arties in guarant% are the creditor and the de"tor su" guarantor& "enefit of e<cussion co&guarantor& "enefit of division guarantor& insures the solvenc% of the de"tor
!B(+ BS.(.B M)!.J(JB W ma%"e foreclosed even if onl% written in a $rivate instrument
MOTO-Q NOTES

*,+(.B!(+
(-.,#E!BS,S
( conditional o"ligation ma% also "e secured
Solemn (mount of $rinci$al and interest must "e in writing2 if not void
5A")4 2 =,-DS !,JE. .) DSB !,JE. .) (//!)/!,(.B H/(#.DM #)MM,S)!,DM> #reditor cannot a$$ro$riate (n% sti$ulation to the contrar% is null and void Eowever2 in $ledge2 if at the first auction the thing sold2 a 2nd one with the same formalities shall "e held2 "ut there is no sale either #reditor ma% a$$ro$riate "ut the shall acquit the entire claim Bncashment of a de$osit certificate given as securit% W not $ostdated chec: H#hua vs #(2 Se$t 2?2 9NIN> ,-D,K,S,*,+,.8
/+BDJB
-)-B2 unless 9 authorized 2 necessar% for the $reservation of the thing
#E(..B+ M)!.J(JB
-ot a$$lica"le unless sti$ulated
/ledgor or Mortgagor is indivisi"le2 eventhough de"t ma% "e divided among the successors&in& interest of the de"tor0 creditor BC#B/.6 1here several things are given in a $ledge or mortgage2 each one of them guarantees onl% a determinate $ortion of the credit !ight of B<tinguishment ,ndivisi"ilit% is not affected "% the fact that the de"tors are not solidaril% lia"le
!B(+ BS.(.B M)!.J(JB
-ot a$$lica"le unless sti$ulated
(-.,#E!BS,S
)nl% right to receive fruits unless sti$ulated
MOTO-Q NOTES

5A")4 3( <IJD53 &F $&<5JAJ&<

=,-DS !,JE. )4 S(+B0 4)!B#+)SD!B !,JE. .) *,D !,JE. .) !B#)KB! DB4,#,B-#8 K)+D-.(!86 -one even if therePs sti$ulation (rticle 29922 (rticle 2995 +BJ(+6 8BS S/B#,4,# /B!4)!M(-#B
/+BDJB
#E(..B+ M)!.J(JB
(rticle 2992 .he creditor to whom the credit has not "een satisfied in due time $ledged ma% $roceed "efore a -/ C < < 9 ;udicial 4oreclosure Sec 93 (rticle 950I 2 B<tra'udicial 4oreclosure Sec 9@ (rticle 950I
8BS /rovided he is the not the onl% "idder (rticle 2993
8BS2 "ut $ledged deemed a"andoned
8BS B<ce$t on installment
8BS2 "ut chattel mortgage deemed a"andoned
9 ;udicial H!ule ?I of the !ules of #ourt> 2 B<tra'udicial 4oreclosure (ct 3935
8BS !ules of #ourt on 4oreclosure
8BS2 "ut securit% deemed a"andoned
(-.,#E!BS,S
5A")4 /( <IJD53 &F #)4IJ&< =,-DS !,JE. .) (+,B-(.B !,JE. .) *,D !,JE. .) !B#)KB! BC#BSS B7D,.8 )4 !BDBM/.,)-
/+BDJB
(!.,#+B 20NA 8BS3 (!.,#+B 290I
8BS (!.,#+B 2993
K)+D-.(!86 -)-B6 (!.,#+B 2995 +BJ(+6 8BS2 (!.,#+B 2929
-)-B
#E(..B+ M)!.J(JB
Sale valid and "u%er ma% acquire ownershi$ "ut if not consented to "% mortgagee2 mortgagor is criminall% lia"le H(rt 39N !/#> (rticle 2930 ( sti$ulation for"idding the owner from alienating the immova"le mortgaged shall "e void
8BS (ct 952I
8BS H!ules of #ourt on 4oreclosures>
Bquit% of redem$tion within N0 da%s from order of foreclosure (fter foreclosure no right of redem$tion Bquit% of redem$tion within N0 da%s from foreclosure (fter foreclosure no right of redem$tion B<ce$t foreclosure of real $ro$ert% "% "an:ing institution and in e<tra'udicial foreclosure of real $ro$ert%_ full amount of $urchase $rice within 9 %ear
(-.,#E!BS,S
Same as a"ove2 (rticle 2930
8BS (rticle 293A2 !ules on 4oreclosures
VII. T%RTS
= there is no need for a pre-existing contract /: :h" file for action for Guasi-delict6 A: )lai# for #oral da#ages (hich has #an" grounds Essential Elements& I. Act or %mission t ere being fa)lt8negligence , negligent act, even acts punished +" la( Cula" vs$ )A , /uasi-delict is not li#ited to negligent acts, even a #alicious or intentional act #a" +e the +asis of a Guasi delict$ Article 2?@@ , acts punished +" la( #a"+e the +asis, the onl" exception is that there +e no dou+le recover" /: Ma" an action for Guasi-delict su+sist (ith a cri#inal case6 A: 4es, the" are distinct fro# each other
/: Criver in a acGuitted in a cri#inal case, heirs filed civil case for Guasi-delict, #a" action prosper6 A: 4es, in Guasi delict #ere preponderance of evi is enough ==$ CAMA1E, an" hurt or har# inflicted /: :hat (ill +e the degree of diligence reGuired6 A: .hat of a good father of a fa#il" or that (hich the la( provides Extraordinar" , co##on carrier, doctors, +anks /: :ho has the +urden of proof6 A: plaintiff ===$ )A%-A' )>77E).=>7 BE.:EE7 A). >R >M=--=>7 A7C CAMA1E
- end-
Share niyo to! To God be the glory
MOTO-Q NOTES
Atty. Crisostomo Uribe notes Civil Law Review 2
7
*ogs 7uitain; .ere Morales; /aulette .ongcua; .ino )cciano; *udz )cciano
MOTO-Q NOTES
Atty. Crisostomo Uribe notes Civil Law Review 2
7
*ogs 7uitain; .ere Morales; /aulette .ongcua; .ino )cciano; *udz )cciano

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MOTO-Q NOTES

Morales, Occiano, Tongcua, Occiano, Quitain

Atty. Crisostomo Uribe

76 Does a creditor have a right under natural o"ligations5

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

(6 to remit the sale of fish sold to C c ( with res$ect to * and 85

(6 ( shall "e inde"ted to *

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

#angco v A?I> -( 70at de'enses>

Jeneric de$ends on the $ur$ose and circumstances

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

or more shall "e

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

;oint o"ligation Solidar% o"ligation

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

+iwanag v 1## #om$utations6 ;oint o"ligations /920 ( * # 8 C

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

" > Su"sidiar% remedies

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

-o transfer of ownershi$2 creditor onl% given the $ower to sell

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe

76 .o deliver sha"u5 ,s the o"ligation e<tinguished5

BOGS QUITAIN; TERE MORALES; PAULETTE TONGCUA; TINO OCCIANO; BU S OCCIANO

Atty. Crisostomo Uribe