Adhesion-1party has a prepard form of contrct,containing the stiplulations he

desires & wants othr agree

Object of contract-all things/serv. XPNS: things outside commerce of
men,intransmissible rghts, future inheritance, ecpt in case exprslly auth by law,
servces contrary to law,morals,good custm,publc order,publc policy,impossible
things,objects not determinable as to its kind.
Cause vs motive-direct/proximate cause of contr//indirect or remote; always the
same for each party//differs; objective & juridical reason of cont//phycological or
purely personal.
Effect of error in cause of contr1.total lack/absence of cause-confers no
right & no legal effect;
illegal-null & void
2.failure -does not render the contract void; 4. falsevoid unless theres another lawful cause
5.lesion/inadequacy-does not
invalidate unless theres fraud.
Kinds: 1.consensual, real (require delivery for perfection-cereation of real rights
over immovable must be written), solemn w/c mst appear in writing ex: donations of
immov & mov-5k; transfer of large cattle; stipulation to pay interest on loans; sale of
land thru agent; antichresis & sales of vessels),
Relativity-binding not only to parties b/w parties but extends to their heirs,
successors in interest & assignees, provided,the contract involves transmissible
rights. XPN: Stipulation pour autrui (in favor of 3rd person);contract entered in fraud
of creditors.
Mutuality-binding to both parties & its validity/effectivty can never be left to one of
the parties.
Autonomy of cont-freedom of parties to contract & to stipulate prov.not contrary to
law,c,pp,po.
Reformtn-to conform to real intent due to mistake,fraud,inequitbl condct,accident,
w/mtg of mind-10yr
Resolution (injurd party
Rescission (possibl only if they can
initiate)
return)-3rd
Nature
Principal action
Subsidiary remedy (reparation for
(cancellation)
damage)
Ground
Only: non-performance of
5: lesions/ fraud of creditors,non-perf
s
oblig
not impt
Applcbl
Only to reciprocal oblig
Both unilateral & reciprocal
ty
Voidable-1of parties is incapacitated to give consent/vitiated consnet.
(ex.minor,deaf-mute,unable to r/wr, mistake of fact not of law; dolo causante
not incidental fraud)
Unenforceable-entered into w/o or in excess of auth; do not comply w/statute of
fraud;bot incapacitated
Statute of fraud-applies only to executory conts not to those consummated or
partially fulfilled.
Void contracs-lack essential element (consent,object, cause), illicit or illegal,
contracts prohibited by law (pactum commisorium-creditor appropriate to himself
things given by way of mortgage to fulfill debt; pactum de non alienando; pactum
leonine-exclude a partner fr share in P/L)
Elemnts of sale-consent,considertn-certn mony/equiv,detrmint subj mattr.No form
reqd.XpN: Sttte of Frd
Absolute sale-title to prop not reserved by seller or if seller is not granted right to
rescind based on fulfill..
Contract to sell-species of condi sale.Does not sell a thing or property; it sells right
to buy prop. Compliance w/ condi does not automatically sellprop to vendee. Merely
gives vendee right to compel vendor to execute Deed of Ablsolute Sale.
Conditional sale-seller is granted the right to unilaterally rescind the contr
predicatd on the fulfilmnt/non-fulfilmnt of condi. Compliance of condi autom give
vendee right to demand delivery of object of sale.
3 stages in formation of contr to sell-negotiation/policitation; perfection;
consummation
Option Money-given as distinct consideration for option contr;applies to sale not yet
perfected; not reqd to buy;if buyer does not decide to buy,cannot be recovered.
Earnest Mny-form part of purch price; given only when thres already a sale;buyer is
bound to pay balnc;if sale did not materialize,it must be returnd (new). Old:subj to
forfeiture whn buyr back out,vald if stiplatd.
Equitable mortgage-one w/c lacks propr formalities,form/words or othr requists
prescrbd by law for mortgage,but shows intent of parties to make the prop subj of
contr as security for a debt.
1. Price of sale w/right to repurchase is grossly inadequate; 2.seller remains in
possession as lessee
3.upon expiratn of rght to repurchase,another inst extending period of
redemption/granting new period executed 4.purch retains part of purch price 5.seller
binds to pay taxes 6.
Period of redemption (pacto de retro)-if no stipulation-4yrs fr contrct date; if
stipulated, period max 10y
EMPTio rei speratae-sale of
Emptio Spei-sale of mere hope/expctncy
unexpctd thing;obj is future
that thng wil come to exstnce or sale of hope
thng;sale subj to condi that
itself; obj is presnt thing w/cis
thng wil exst,if not,no
hope/expctncy; sale effctve even if thing
contrct;uncrtain as to qty&qlty
doesnt come into exstnce unless vain
hope;uncrtain to exist.

Traditio longa manu-seller points to thing w/o need of actual delivering;Traditio

BreviManu-before contrct of sale,would be buyr was alrdy in possession of the subj
mattr of sale.
Constitutum possessarium-when at time of perfection,sellt had possession in
concpt of ownr.continues to possess not in concpt of owner but as lesee of othr
forms.
Quasi-tradition-delivrng of ryts,credts or incorporeal prop,made by placing titles of
ownership in hands of buyr,allowing buyer to make use of rights.
Sale of Movable by installment-Remedies of unpaid seller (alternative): 1.
Exact fulfilmnt shld buyr faild to pay 2.cancel sale if buyr fails to pay 2/more
3.foreclosure on chattl if fails to pay 2/more.
Immovables by installment (MACEDA)-purpose: protect buyrs in instllmnts aginst
oppressive condi.
Rights of buyer (at least 2 yrs installment):
1.pay w/o intrst the bal w/n grace period of 1 mo.for evry yr of instlmnt sale. Grace
period once evry 5yr
2.when no pymt-cancelled; buyer entitled to 50%of what he paid+if aftr 5 yrs of
instlmnt,5% for evry yr not to exceed 90% of total pymt. 3.cancelled w/in 30dys fr
notice & upon pymt of cash surrender value.
Rights of buyer (pd less than 2 yrs installment): 1.1 st grace pd is 60dys fr date
instlmnt became due
2. 2nd grace period of 30dys fr notice of cancelltn/demnd for rescission
Double Sale-1.1st to register in GF; 2.if not regiterd-1 st to possess in GF; 3.Oldest
title. (in GF-no knowledge of defect of title & facts w/c alerted him to conduct further
inquiry as to the info.
Guaranty secondry oblig; pay if
Suretyship-primaty oblig; pay if
principl dbtor cannt pay,entitled to
principl dbtr does not pay; no
ben of excussion; insures solvency of
excussion; surety insures debt;
prncpl debtr;subsidiary liab
solidary liab w/prncipl.
Pactum commi-if contrct provd for automatic appropriation of thig pledge in case of
default of debtr
AGENCY-Persons far apart-acceptace of agncy cannt be implied fr silence of
agent; excpt:
1.prin transmit his PA to agent,who receivs it w/o objcton; 2.prin entrust to hm by
letter or telegram a PA w/respct to bus in w/c he is habitually engaged as agent &did
not reply to telegram.
Sub-agent allowed if no prohibition by principal.-responsible acts of sub-agent:
1.when not given power to appoint one; 2.given such power,but w/o designating
person-notoriously imcompetent/insolvnt
Antichresis-creditor acquires the right to receive fruit of an imoov of his debtor,to
apply them to pymt of intrst,then to the principal.
Ne earning capacity=life expectancy x gross annual income less living
expenses (50 of grss annual inc).
LE=2/3 x (80-age of deceased)
Actual/compensatory-adequate compensation for pecuniary loss suffered as
alleged & duly proved.
Moral-phy suffering, mental anguish,fright,serious anxiety,besmirched
reputation,wounded feelngs,moral shock,social humiliation,&similar injury. They r the
proximate result of wrongful act/omission.
Nominal-in ordr tht the right of plaintiff,w/c has been violated, maybe vindicated &
not indemnify loss. Temperate/Moderate-more than nimonal,less
compensatory.recvrd whn court finds that some pecuniary loss has been suffered but
amt cannt be provd w/certnty.
Liquidated-agreed upon by partie to paid in case of breach. Exemplry-corrction of
publc good.w/aggrvtng
Father /mothr (died/incap of
Minor
Who live in their co.
fthr)
Guardian
Minor/incapact
Under authority AND live in them
d
Owner/mngr
EEs
On occasion of their function
Employers
EEs & houshd
Acting in assignd task, even not
hepr
in bus.
State
When acts thru special agent
Teachr/head of est of
Pupil,stud,appr
Remain in custody (special
art&trde
ntic
parental auth)
Captain of ship doct-lays respnsibilty in hands of lead surgeon.
Proximate cause-in natural &continuous sequence,unbroken by any efficient
intervening cause,produce injury,w/o w/c the result wud not have occurd.
Contributory neg-act/omiss amtg to want of ordinary car on part of person
injured,concurred w/ neg of defendant, is the proximate casue of injury. Cannot
recovr in full.
Comparative-neg of both compared for purps of reaching equitable apportionment
of liab/damges.