Civil law Review 2 Midterms 2015

Civil law review II 12-16-14 || 00:00:01 - 00:16:00 || Araneta

Civil law review II 12-16-14 || 00:00:01 - 00:16:00 || Araneta
Art. 1300. Subrogation of a third person in the rights of the creditor is either
legal or conventional. The former is not presumed except in cases expressly
mentioned in this Code; the latter must be clearly established in order that it
may take effect. (1209a)
Art. 1301. Conventional subrogation of a third person requires the consent
of the original parties and of the third person. (n)
Art. 1302. It is presumed that there is legal subrogation:
(1) When a creditor pays another creditor who is preferred, even without the
debtor's knowledge;
(2) When a third person, not interested in the obligation, pays with the
express or tacit approval of the debtor;
(3) When, even without the knowledge of the debtor, a person interested in
the fulfillment of the obligation pays, without prejudice to the effects of
confusion as to the latter's share. (1210a)
CASES OF LEGAL SUBROGATION (ART 1302)
(1) When a creditor pays another creditor who is preferred, even
without the debtor's knowledge
1st 20 seconds inaudible, but basically gist is:

D has utang to X of P10K; and utang to Y Php20K

X paid Ys utang to D

00:00:20
Impas ang untang ni D didto kang Y kay gi bayaran ug Php20K ni X. So
after payment unsa na may resulta?
D is the debtor of X, Php10Kordinary obligation na noh. D is a debtor to
Xthis time na saddili na si Y ang utangan ni Dna subrogated na si X.
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Na ilisan sa pwesto si Y, si X nasad. Ngano na creditor man siya usab ni
D? Because he is a creditor by subrogation, having paid the obligation of
D and accepted by the creditor, Y.
Ako si Xutangan si D nako ug Php10K, ordinary obligation. Utangan sad
si D nako ug Php20K. Ngano man? Reimbursement to me. I am a creditor
by subrogation because I became a creditor by virtue of payment to
another creditor who is preferred. So duha iya utang nakoPhp10K ug
Php20K.
Notice the changewhen one creditor pays another creditor who is
preferredwhat happens? Legal subrogation. We erased Y as the creditor.
In lieu of Y, we now mark X as the creditor of D. Nagsabot ba sila ani
tanan? Wala, bala-od ra ang nagbu-ot. So si X karon, maningil na sa
Php10K as an ordinary creditor and sa Php20K as a creditor by
subrogation. Bunyagi na siyag ngalan class, kay maglibog man ka puro
siya creditor. Creditor by subrogationngano man? Because he is
subrogated to the rights of Y.
Pananglitan dili kabayad si D sa utang niya nga Php20K ni X? Can X
foreclose the mortgage in favor of Y? Yes. Kay subrogated man si X sa
rights ni creditor na si Y. Sa ato pa, X inherits all the rights of Y. Unsa man
ang rights ni Y kani-adto? To demand payment; kung di kabayad to
forclose. So Php30K tanan imo paaboton na bayad gikan ni D kung ikaw si
X (Php10K ordinary, Php20K by subrogation).
So D you are no longer to pay Y Php20Kthat was already paid by X. You
are going to pay X Php20K anew, apart from the Php10K contracted
earlier. Who facilitated the change? Mao na gi tawag ug legal subrogation.
Wa na sila nag sabot. Bala-od ang nag-buot. Lain man tong nagsabot mo
voluntary subrogation man to, where the consent of all parties is
needed. Kani siya, ni consent ka ug sa wala, basta the circumstances
required by law are present, there is now legal subrogation on the part of
X. So kaduha na ni siya bayaran.
When one creditor pays another creditor who is preferred, it will result in
legal subrogation.
(2) When a third person, not interested in the obligation, pays with
the express or tacit approval of the debtor
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Ok, 3rd person ha, ang ni bayad, unya not interested. Pero ni bayad siya
na naay pag tugot sa creditor.
Mag create tag situation
D, C, Php30K.
T, a 3rd person, meaning one who is not privy to the agreement or
conract of loan. Ingon siya, D, I know you are a debtor to C, Php30K.
Will you approve if I pay your obligation? Ingon si D: Yes, maayo hinuon
kay wala koy kwarta. So pagsugot ni D, si T na maoy mubayad ni C.
What happened to the obligation of D, Php30K? Already extinguished.
Ngano man, naka bayad diay? Wala. So ngano man? By novation. Na
ilisan siya, diba? Nag sabot gud si D ug T nga si T mu bayad. So it is
now T who is the new debtor. Si D old debtor, for identification
purposes. If you are C, to whom do you collect payment? Adto sa new
creditor, adto ni T.
Gi bayaran si C ug Php30K. So he is no longer part of the discussion,
having received payment in full; kay nabayaran naman. Pero na impas
na ba tanan? Wala pa uy. Si T diay na ni bayad? Si D mu ilis man gyud
na. D, asa man ka mubayad sa Php30K? Supposedly C, pero na impas
naman to. So D, you are now to directly pay T, because he became a
creditor by subrogation by virtue of paying Cs obligation with your
consent. So your new creditor is T.
Sa #1, your new creditor is X.
So legal suborgation tong # 1 and #2. Wa man gi sabot sa mga
parties. Balaod ang nag buot.
So T is subrogated to the rights of C. Meaning, all the rights of C before
receiving payment of Php30K is now inherited by T. T steps into the
shoes of C.
(3) When, even without the knowledge of the debtor, a person
interested in the fulfillment of the obligation pays, without
prejudice to the effects of confusion as to the latter's share
Notice #3: 3rd person, but interested; even without the consent of
debtor.
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For example, D debtor Php50K guaranteed by G. Guarantoris he not
interested in the payment of the obligation? Therefore, ang gi buhat ni
G, wala nananghid ni D, di kailagan iyang pagtugot kay ingon siya I am
a person interested kay ma adversely affected ko ani therefore C, I
want to tender payment of Php50K for this obligation. Di ka balibad si
C. So wala nay labot sa discussion si C kay nabayaran naman.
Si D, malipayon ba siya na wan a siyay utang ni C? Dili uy Ang imong
utang ni C kay na impas, pero kaning novation kay unique kayoit will
extinguish but at the same time create. Therefore, kinsa may bayran
ni D? Si G, mao na sad na siyay bayran. Legal subrogation.
Sa legal subrogation, all the rights of the old creditors are exercise-able
by the new creditors by subrogation.
I-revive to ako ang partial na situation kanina ha, kay kailangan man to siya
sa 1304.
Art. 1304. A creditor, to whom partial payment has been made, may
exercise his right for the remainder, and he shall be preferred to the person
who has been subrogated in his place in virtue of the partial payment of the
same credit.
D. Debtor of X Php10K, Debtor of Y Php20K with mortgage.
X paid Y Php15K for Y. Therefore ang utang ni D ngadto ni Y Php5K nalang
ang balance, courtesy of payment made by X. Ang utang ni X nagpabilin na
Php10K
Because X paid partially, kana si D is now a debtor by subrogation, Php15K in
favor of X Php15K. So sumadaX is an ordinary creditor for Php10K and X is
also a creditor to D by legal subrogation having paid D Ys obligation in part.
Additionally, D is a debtor to Y kay ang balance diay na Php5K.
D is in a quandarydaghan siya utang. Naa siyay Php5K, kinsa man iya
hatagan? Kay forceful man si X, nagpabayad na. Si Y pud, nagpabayad na.
Kinsa may palabi-on nmo, ang gamay or ang dako? /araneta

Civil law review II 12-16-14 || 00:16:01 - 00:32:00 || Arnado

CIVIL LAW PART II
12/16/14 // 00:16:01-00:32:00 // ARNADO
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(Inaudible @ 00:16:01-00:18-49 anyways iya man pud gibalik ang issue)
SIR: OK, balik ta. Unsa gani to ang ISSUE: so sir asa ang palabihun. 5k nalang
kang Y, pero kang X 25k tanan. Alright. Naay bala-ud, di ka maglibug class
ui. Art. 1304!
Art. 1304. A creditor, to whom partial payment has been made, may
exercise his right for the remainder, and he shall be preferred to the
person who has been subrogated in his place in virtue of the partial
payment of the same credit.
Nya nganung maglibug man ta nga naa may balaud, squarely falling under.
Ang example ako gi- base sa bala-ud. The creditor to whom partial payment
has been made,.. kinsa man makadawat sa partial payment? Diba si Y man?
Y may exercise his right to the remainder of 5K, kato example nako. And he
shall be preferred of the person who has been subrogated in his right by
virtue of the partial payment of the same credit. Unsay reason? Ang imong
preference is not lost due to the partial payment..nagpadayun.. ang imong
preference is continuing. Diba, sa ato pa kung partial payment mawagtang
imong preference?! Dili ui,..kung maw na sturya-a hatagan ka nalang ug
partial payment. Di ba, so to repeat, the creditor will not lose his
preference by virtue of partial payment. So y, being a preferred creditor,
such status continue.. mupadayun with respect to the 5 thousand,
notwithstanding the partial payment. So klaro kayo ang bala-ud, dili gyud
mawagtang iyang preference as preferred creditor. Therefore, y is preferred
with respect to the 5k notwithstanding the partial payment. So siya ang
palabihun.

Ok ari sa ta sa compensation. Article 1278:

Art. 1278. Compensation shall take place when two persons, in their
own right, are creditors and debtors of each other.
Compensation is the extinguishment to the concurrent amount of the debts
of two persons who, in their own right, are reciprocally principal debtors and
creditors of each other. Example, I owe you 10k, you owe me 10k.. both
debts are legally due. So what do you think? Do we still need to pay each
other? So bayad ka nako ug 10k..then after which, mu bayad sa d ko nimo
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10k. diba mura tag bo-ang ana? Therefore impas na na! treat it as paid
already.
Kanus-a man ang legal compensation takes place? Diba 1278 ang definition,
naa sa 1279 ang requirements. Sa legal compensation ni ha!
Art. 1279. In order that compensation may be proper, it is necessary:
(1) That each one of the obligors be bound principally, and that
he be at the same time a principal creditor of the other;
(2) That both debts consist in a sum of money, or if the things
due are consumable, they be of the same kind, and also of the
same quality if the latter has been stated;
(3) That the two debts be due;
(4) That they be liquidated and demandable;
(5) That over neither of them there be any retention or
controversy, commenced by third persons and communicated in
due time to the debtor. (1196)

Unsa may requirement?

(1) That each one of the obligors be bound principally,
and that he be at the same time a principal creditor of
the other;
Sus, taas2 lang ni nga wordings. Example, si D utangan siya ni C 10k. si C
utangan siya ni D 10k. (TN: dili daw kailangan ang debts arising from the
same transaction, pero for bar purposes lang na nga parehas). So kinsa man
ang principal debtor sa first obligation? Si D. while ang principal creditor sa
first transaction is C. sa second obligation kinsa man principal debtor? Si C,
whereas ang principal creditor sa second trans kay si D. hence, parties C
and D are reciprocally principal debtors and creditors to each other.
Second requirement unsa man:
(2) That both debts consist in a sum of money, or if the
things due are consumable, they be of the same kind, and
also of the same quality if the latter has been stated;
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That both is consist of sum of money. Ang utang niya nimo kay bahin ug
kwarta, while imong utang niya kay bahin ug kwarta pud. Sa ato parehas.
Money and money.
So pananglitan dili kwarta. What if consumable? Pananglitan milk. Example,
20 kartons Alaska milk imo utang niya. While siya pud utangan nimo 20
kartons of Alaska milk. So pde compensation ani. Dapat same nature and
kind. Basta dili gani bahin money ang debts, dapat same kind.
so dili pde nga Alaska milk nya ang other debt kay bear brand chocolate.
Another example. 25kilos of sugar ang utang ni A to B, ang utang ni B to A
kay 25 kilos of sugar. Wala ni specification sa diri nga example ha. So kani pd
era ni nga compensation. Pero once mu-mention gani ka ug brand, wa na!
kay aduna naman specification, dapat of the same kind and quality nana. Sa
ato pa, quality is to be observed only if it is mentioned.
Ari ta sa rice nga example. Ganiha wa tay problema sa kwarta sayun ra
mana ma determine. Ari ta sa bugas(rice). Example rice, pero way mention
sa brand. 25 kilos of rice ako utang nimo, nya ang utang nimo nako kay 20
kilos. Can there be compensation? yes. But although there is compensation,
it is only partial. There is partial compensation kay although of the same
kind, ang quantity different man. Diba kay 25kilos ang usa, ang other kay
20kilos raman. So sa kani nga example, mu hatag pa kog ug 5 kilos niya.
Silbi utangan pa ko ug 5.
Pero the moment you mention a specific kind/quality. Like naa koy utang
nimo nga ganador rice, pero imong utang nako kay sinandomeng rice. Can
you comensate that? No,Sir, puro man sila consumable..dili sila ma
compensate sir? Yes dili sila ma compensate, kay although they are of the
same kind, they are not of the same quality. Ang usa ana mahalun man,
while ang usa kay barato. So kung i-allow nato ug compensate ang
sinandomeng vs. ganador, nay gyuy ma-alkanse. So dili musugut ang balaud. So dapat of the same kind and quality. So sa ato pa ang QUALITY must be
observed kung i-specify na cya . pero kung wa gani gi mention like bugas
lang(rice, generic), so even if different ang brands sa duha ka debts, then ok
ra, kay wa man gi mention ang brand. Kung mu-mention ug brand, dapat the
same brand gyud ang duha! For the obvious reason nga ma-alkansi ang usa.

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So to repeat,. Ask the question: 1)are both debts consumable? Next 2) are
they of the same kind?... next, if mu-mention gani ug quality(brand) ..then
ask the question 3) are they of the same quality?
Pero kung wa gani mu mention ug brand(quality), ang important issue diha
is, are they of the same kind?
..
Civil law review II 12-16-14 || 00:32:01 - 00:48:00 || Arriesgado
Civil law review||12-16-14?|00:32:01-00:48:00|| Arriesgado, ranier

Legal compensation (requisites)

1. That each of the obligors be bound principally, and that he be at the
same time a principal creditor of the other;
2. That both debts consist in a sum of money or if the things due are
consumable, they be of the same kind, and also of the same quality if
the latter has been stated.
3. That both debts must be due;
4. That both debts be liquidated and demandable; and
The amount must be certain, known, or fixed. This is to
determine whether the compensation is partial or total. Example:
if cya utangan nko og P10,000 og ako pud utangan nya og
considerable amount of money. Dba puro mna kwarta? Can there
be legal compensation? NO, because considerable amount of
money is not certain or fixed. Wla ta khibw if pila gyd na.
5. That the object or subject matter of the proposed legal compensation
is not involved in any litigation nor is there a claim by a third person
(you have free disposal of the subject matter).
Example: A deposited in the bank P240,000.00, and subsequently A
obtained a loan from the said bank worth P200,000.00. The BIR sent a
freeze order to the bank of A because he did not settle his tax
liabilities. Thus A can no longer withdraw his deposit in the bank. When
the loan matured, A proposed that the bank should no longer collect
from him because he has a deposit with the bank worth P240,000.00.
So offset nlang ang P200,000.00. Can there be compensation? NO,
because the P240,000.00 is subject to claim by the BIR, and therefore
it cannot be the object of compensation.
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Legal compensation takes place by operation of law as long as the
circumstances required by law are present.
Reminder: Ang guarantor ky pwedi nga maka invoke og legal compensation
in order to diminish his liability.
Condonation - gratuitous abandonment by the creditors right.
Requisites:
1. Obligation must be due and payable;
At the time the obligation is extinguished by the creditor, that
particular obligation must already be due and payable. Why? Ky
mo condone gani ka og right, dapat it must be existing. Ky unsa
mn imo e condone if wla pa ni exist? Kanus a mo due? At the
date of maturity of the obligation. So before maturity, dli pka ka
condone ky wla pa ni exist imo right.
2. It must be essentially gratuitous;
3. There must be acceptance by the debtor; and
Must comply strictly the form of donation.
Civil law review II 12-16-14 || 00:48:01 - 01:10:31 || Atuel
Kinahanglan bayrunon na, kay if di pa bayrunon wa kay right nga maningil
nako. Di jud ka makapugos ug pabayad sa debtor ug di pa tingbayad. Wa jud
kay mahimo.
2. It must be essentially gratuitous.
Without recompense. Without consideration asked for. Wa kay gipangayo ilis
sa imung pag.impas sa iyang utang. Kinahanglan class essentially gratuitous
siya, wa kay pangayuon. Unsa may gratuitous? The creditor is not asking
anything in exchange of the waiver of his right.
3. There must be acceptance.
Nganung kinahanglan mu.accept man ka class? When you condone, it is an
INDIRECT DONATION. Mao ng because it is an indirect donation, you are duty
bound to comply with the formalities of a donation.
Art. 748. The donation of a movable may be made orally or in
writing.
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An oral donation requires the simultaneous delivery of the
thing or of the document representing the right donated.
If the value of the personal property donated exceeds five
thousand pesos, the donation and the acceptance shall be
made in writing, otherwise, the donation shall be void. (632a)
Art. 749. In order that the donation of an immovable may be
valid, it must be made in a public document, specifying therein
the property donated and the value of the charges which the
donee must satisfy.
The acceptance may be made in the same deed of donation or
in a separate public document, but it shall not take effect
unless it is done during the lifetime of the donor.
If the acceptance is made in a separate instrument, the donor
shall be notified thereof in an authentic form, and this step
shall be noted in both instruments.
Sir, unsa may formalities mu.donate kog 5,000? Wa, dawata lang nya ingna
salamat.
Pero ug 5,000.01, it must be in writing. Bisag private document. Nganuman?
Exceeding 5,000.
So, you observe the rules on donation. Must adhere strictly on the rules on
donation. So again, dapat naay acceptance. No acceptance, no valid
donation. Unya sir kay condonation mani? Condonation is an indirect
donation. If you did not accept, outstanding imong utang. Naa gihapon kay
utang.
So therefore, factor ang amount kay naay formalities to be observed. Ayg
kalimot, acceptance can either be express or implied.
MERGER
Art. 1275. The obligation is extinguished from the time the characters
of creditor and debtor are merged in the same person.
Art. 1276. Merger which takes place in the person of the principal
debtor or creditor benefits the guarantors. Confusion which takes place
in the person of any of the latter does not extinguish the obligation.

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Art. 1277. Confusion does not extinguish a joint obligation except as
regards the share corresponding to the creditor or debtor in whom the
two characters concur.
Unsa maning merger?
Merger meeting of the quality of the debtor and creditor with respect to the
same person. Sa ato pa, ikaw debtor, ikaw sad creditor. You could be absolve
to pay oneself, kay ikaw debtor and at the same time ikaw sad creditor.
Pananglitan joint obligation, 3 mi ka debtor, 30,000 ang amount, siya ang
creditor. The creditor assigned the credit to me so ako na karun ang tag-iya.
Class pila man ka butang akong makolekta nila tagsa-tagsa? I can demand
10,000 and 10,000. Ang first 10,000 nako extinguished na because of
merger. Nganuman na? Because your obligation is separate and distinct from
one another. Buwag mana. Ug naay merger nako, apil diay sila? Tag-iyahay ni
ato.
Distinguish condonation from remission? Give at least five, if any. Ayaw pag
binugo pareha rana silang duha!
Mao sad na confusion or merger. Pareha rana ui.
LOSS OF THE THING DUE
Requisites:
1.
2.
3.
4.

The obligation must be an obligation to deliver.

Object must be specific.
Debtor is free from any fault or negligence.
Debtor is not in default.

Q: Example, ako debtor. Akong obligation is to deliver a brand new car. A

certain driver whom I authorized figured in an accident while driving the car.
Supposedly e-deliver next week ang car. Is the oblgation extinguished?
A: Tan-awun nato ang requirements ha. Ang obligation nako to deliver ba?
Yes. Is the object specific? Yes, brand new car. Nganung kinahanglan man
specific? Loss of a generic thing does not extinguish an obligation. Is the
debtor at fault? No. Is the debtor in default? Not yet. Kay ang maturity date
next week paman. I could not be in default. Kay if in default pa ka class, you
are liable all the time for the loss of the thing.
Article 1165.
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If the obligor delays, or has promised to deliver the same thing
to two or more persons who do not have the same interest, he
shall be responsible for any fortuitous event until he has
effected the delivery.
Ang fortuitous event will not excuse you from liability if you are in default.
Kay accountable naman ka regardless of the cause of the loss kay na
defaulted naman ka. So going back to my example, are you free from
liability? Di pa. Take note of Article 1265.
Art. 1265. Whenever the thing is lost in the possession of the
debtor, it shall be presumed that the loss was due to his fault,
unless there is proof to the contrary, and without prejudice to
the provisions of article 1165. This presumption does not apply
in case of earthquake, flood, storm, or other natural calamity.
Ang presumption kay against man nako. Therefore, there is a presumption
that I am at fault. So you just cannot claim that you are not at fault because
the law presumes that you are at fault. Unsa may buhaton nako? I must first
prove that I am free from any fault in order to rebut and destroy the
presumption that I am at fault. Once ma-establish ug ma-prove nako nga I
am free from fault, diha pa ma-establish ang 3 rd requisite. Kinahangalan imo
sang e-destroy ang presumption kay if di nimu ma-destroy it will operate
against you. Once ma-prove na nimu, finally makaingon naka nga I am
released from liability because of the loss of the thing.

Civil law II 1-10-15 part 1 || 00:00:01 - 00:16:00 || Balahadia

1-10-15 part 1 (00:00:01-00:16:00) Balahadia

In consideration of price, reward, or money imong gisaad. Sa atong example,

ang P3,000.00 na ibayad sa pagpatay. The law says that, provided, it is not
contrary to law but murder man so dili nato pwede tagaan ug validity. Unsa
pa man? That is contrary to public policy. Unsa na policy? Baruganan sa
atong nasud.
For example, in a contract of lease, it was provided that if the lessee
defaults in the payment for three consecutive monthly rentals, the lessor is
given the right to employ force to evict the lessee. In our example, the
lessee defaulted, and nagdala ka ug tubo. Is it valid? No. It will invite trouble.
It will disturb peace and tranquility in a society.

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Cutoms as violated in the contract. What are customs? Customs are the
repeated acts practiced by the society which gives social and practical
approval. For example, provision in the contract states that: the woman
shall submit herself to the man for three consecutive days and nights without
the benefit of marriage That is not valid because it is immoral. Our customs
and kinaiya dili musugot ana. Dili kinaiya sa kadaghanan. Ground ani kay
contrary of morals.
MUTUALITY OF CONTRACTS:
Article 1308. The contracts must bind both contracting parties; its validity or
compliance cannot be left to the will of one of them.
RELATIVITY OF CONTRACTS:
Article 1311. Contracts take effect only between the parties, their assigns,
and heirs, except in case where the rights and obligations arising from the
contract are not transmissible by their nature, or by stipulation or by
provision of law. The heir is not liable beyond the value of the property he
received from the decedent.
Who are bound by the contract? Only the contracting parties, assigns, and
heirs. For example, A and B entered into a contract of sale and namatay si A.
the heir is bound to deliver because binding mana nila.
But naay exceptions ani nga provision:
1. Stipulation pour autriu it is a contract conferring a benefit in favor of
a third person who accepts before it is revoked.
For example, naghuwam ug kwarta si D(debtor) ni C(creditor) ug P
1,000.00 with interest of 10%. Sa among stipulation, kanang P
1,000.00 akong gihulaman, akong bayaran in 4 equal monthly
installments so P 250.00 kada data unya ang tanto ana nga 100.00 (as
interest) kay ihatag kay W. Since 4 equal monthly installments man,
tag P 25.00 ang ihatag kay W. So:
INSTALLMENT
First Installment
Second Installment
Third Installment
Fourth Installment
Total

C (creditor)
P 250.00
P 250.00
P 250.00
P 250.00
P 1,000.00

W (third person)
P 25.00
P 25.00
P 25.00
P 25.00
P 100.00

Kung pananglitan, dili nako ihatag ni W ang P 25.00, can W enforce it?
Diba dapat contracting parties lang? Pwede ba? Yes.
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2. Article 1314. Any third person who induces anothe3r to violate his
contract shall be liable for damages to the other contracting party.
For example, si A and B naay kasabotan. Si A kay ang artista. Naay
stipulation na si A, sa ilang salida kay maghubo-hubo siya.
What if I tell A na ayaw sugot ana uy kay mubarato ka ana. Maghubohubo ka in public. In effect, I induced A not to comply with the contract.
Based in the provision, I will be liable for damages. What if I say na
kaayohan mana ni A? But the provision in the law does not qualify the
inducement. Kuwang na uy. What if the inducement is noble? Makaayo? Unya pabayaran ug damages? Dili na paigo. Para nako class,
kuwang na ang provision. It must be stated as: inducement which is
harmful to the contracting party. Unya class, tinarung mana ako. My
basis of the inducement is because the act is lewd or immoral.
Nganong maliable for damages man ko?
Merely inducement is not enough. It should be an inducement which
may cause harm or injury to the other contracting party.
Civil law II 1-10-15 part 1 || 00:16:01 - 00:32:00 || Barcenas
Unsa pay lain exception ana?

Ah pananglitan death of a person nya ikaw moi ni inherit? Obligation not covered by
the estate wa na kai labot ana. Kutob rana sa covered sa estate. Its not binding
upon you.
Art. 1315. Contracts are perfected by mere consent, and from that
moment the parties are bound not only to the fulfillment of what has been
expressly stipulated but also to all the consequences which, according to
their nature, may be in keeping with good faith, usage and law.
Contracts are differently perfected.
Consensual Contracts
Ex: Contract of Partnership.
Pananglitan maghimo mig partnership ni ivy, nisugot siya, perfected nana diha.
Partnership is consensual.
Real Contracts
Naa pud uban contract nga mag pa abot sa butang sa kasabutan. Ex. Contract of
deposit
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Pananglitan I will deposit my precious object, dad.on nako karon Monday. Muana ko
sige dawatun nako akoy bahala for safekeeping it. Nana bay contract of deposit? Sa
pagka karon wala. Kanang contract of deposit real contract mana it requires
delivery of the object sought to be deposited before it can be perfected. Kay wala
paman nako napadala niya, wala pay contract. Ang naa contract to create a deposit
pero wala pay contract of deposit momentarily hantod mapadala nako.
Other examples of Real Contracts: pledge,
Formal or Solemn formalities of the law must be complied for perfection
Ex. Contract of donation.
I will donate land if you are willing to accept. Donation of real property has got to be
in a public instrument.
Question: Nganong sa balaod consensuality raman? Because most contracts are
consensual.

Art. 1318. There is no contract unless the following requisites concur:

(1) Consent of the contracting parties;
(2) Object certain which is the subject matter of the contract;
(3) Cause of the obligation which is established.
Stages in a Contract
1) Preparation the parties are still bargaining with each other, wala pai terms
and conditions; it marks the birth of the contract.
2) Perfection it marks the birth of the contract; meeting of the minds
3) Consummation when the terms and conditions are already complied with;
there is nothing left to do or to comply
Art. 1319. Consent is manifested by the meeting of the offer and the
acceptance upon the thing and the cause which are to constitute the
contract. The offer must be certain and the acceptance absolute. A
qualified acceptance constitutes a counter-offer.
Acceptance made by letter or telegram does not bind the offerer except
from the time it came to his knowledge. The contract, in such a case, is
presumed to have been entered into in the place where the offer was
made.

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Offeror ang nanghagad; Offeree ang gihagad
Ex. R sent a letter addressed to E nga gi hagad niya specific car for a price of 500k.
It was sent by R Dec. 1, 2014. Unya pagkadawat ni E iyang gibasa Dec. 4, 2014.
After reading, ingon si E willing siya. The following day, Dec. 5, 2014, kini si E wrote
a letter addressed to R accepting the offer. Nadawat ni R Dec. 7, 2014.
When is the contract perfected? December 7, 2014. Cognition theory, inig kahibaw
sa tao nga naghagad.

Civil law II 1-10-15 part 1 || 00:32:01 - 00:48:00 || Fiel

Civil Law Review II
Fiel John M.
32:01-48:00
NOTE: Naa part sa transcript na ako ra gi copy-paste sa transcript
with few modifications last year kay parehas raman ang substance
sa discussion ni Sir M.
Now, pananglitan class R withdrew the offer.
R wrote a second letter addressed to E Letter of Withdrawal of Offer Please
disregard the letter dated Dec. 1 undersigned and no longer interested to
offer the same. Signed R.
Now, nadawat ni E, dili na material kanus-a nadawat. The withdrawal was
made 1 day before the receipt of letter of acceptance Dec. 6 2014. Nagsuwat
siya Dec 6 dili na niya idayon paghagad og baligya. Nadawat ang letter of
acceptance Dec . 7. So which is which? Perfected contract or not?
Answer: Not perfected. The withdrawal of the offer of the offerer/offeror
before the receipt of the acceptance of the offeree will cause the nonperfection of the contract. Reason: Because when the latter received the
letter of acceptance the offer was already revoked or withdrawn by the
former. There is no more offer when letter of acceptance was received so the
date of the acceptance of the letter does not matter. What matters is the
date of the withdrawal. There is no consent in this case because consent is
manifested by the meeting of the offer and the acceptance upon the thing
and the cause which are to constitute the contract. There is no meeting of
the minds because when there was acceptance, there was no more offer.
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Principle: The withdrawal must be done before there is acceptance.

Acceptance made by letter or telegram

Let us reverse the situation. R offered to sell the Car to E for 500k and the
latter accepted.
Dec. 5 - E then sent a letter of acceptance.
Dec. 7 - R received the letter of acceptance.
Dec . 6 - E withdrew his offer and sent a letter to R
Dec . 8 - R received letter of withdrawal . Is the contract perfected or not?
Answer: There is already a perfected contract.
Reason: Acceptance made by letter or telegram does not bind the offerer
except from the time it came to his knowledge (Art. 1319 2 nd par.) Cognitive
Theory [Acceptance concur only when the offeror comes to know, and not
when the offeree merely manifests his acceptance (as opposed to
manifestation theory)]

Illustration 2:

Jan 1: Letter offer made by S selling his car for P1M to P

Jan 5: Letter received by P, absolutely accepted such offer
Jan 5: Letter of acceptance sent to S
Sometime after the letter of acceptance was sent, P considered and
decided not to buy anymore so he sent a letter of revocation.
Jan 8:

Letter of revocation received by S in the morning

Letter of acceptance received by S in the afternoon

Is there a perfected contract?

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No.
Principle:
1. Whichever communication received first is binding
Reason: Since revocation was received first, there was no perfected contract.
If acceptance was received first before the letter of revocation what is the
answer?
Principle:
1. Whichever communication received first is binding
2. Once acceptance is made, revocation cannot be unilaterally
done
Reason: Since acceptance was received first then there was already a
perfected contract. Revocation cannot be unilaterally made. To effectuate
revocation, it must be done in such a way that it would be received before
the acceptance. In the same way, the seller cannot also take back or revoke
his offer once acceptance is made. The seller must therefore communicate
his revocation before he has received the acceptance.

Comment: Should both the letter of acceptance and the letter of revocation
be received simultaneously, it would be a matter of evidence as to which
letter was read first.
Civil law II 1-10-15 part 1 || 00:48:01 - 01:04:00 || Kho
Civil law II 1-10-15 part 1 || 00:48:01 - 01:04:00 || Kho
Kanang I withdraw ang offer, simple ra kayo, do it any time before
receiving letter of acceptance. Wa paka kadawat letter of
acceptance? Sige withdraw. Point is you revoke it before letter of
acceptance.
Acceptance maybe expressed or implied. (joke na sad nga way lami)
When an offer becomes ineffective?
1. Death
2. Insanity
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3. Insolvency
4. Civil interdiction
Anyone of those class, pili lang ka. Who will suffer of the
circumstances? Either the offerer of the offeree . Kanus a mahitabo
class? Before perfection, sa imong libro before acceptance is
conveyed meaning before perfection.
If the offerer or offeree before perfection dies, became insane,
insolvent, civil interdiction, the offer becomes ineffective or
dissolve. Bisan kinsa nila duha class (referring to the offeror and
offeree)
Kanus a to naperfected? (referring to the example previously
given..written on the white board)
December 7, 2014. If before December 7, si R ug si E nabuang,
namatay or civil interdicted, ang offer ni R automatic nga
ineffective, wa nay epekto. Ang offer madisolve outright, bisag
kinsa nila nga duha class! So wa gyuy contract mahimo ana class.
ART. 1324. When the offerer has allowed the offeree a certain period to
accept, the offer may be withdrawn at any time before acceptance by
communicating such withdrawal, except when the option is founded upon
consideration, as something paid or promised.
Maghimo tag PAN, pan means pananglitan..(joke na sad about Pan)
Civil law II 1-10-15 part 1 || 01:04:01 - 01:20:00 || Lim, Arl
Pananglitan: D (Dealer), P (Buyer)
P asks how much is the car, D replies 1.2 Million. after hearing the price, P
could not make up his mind. So D offers P, 10 days from Jan.10, to decide if
he will purchase the car or not. On Jan. 15, P decides to buy the car, D
withdrew the offer on Jan. 14, the question here is: is there a perfected
contract? P insisted on buying the car, since according to him he was given
10 days to decide and it is only Jan. 15.
-Pag withdraw ni D, naa na ba'y acceptance? wala pa. According to the law,
the offer may be withdrawn anytime. In other words, offeror can withdraw
anytime, provided, there is no acceptance. How? by communicating your
withdrawal. It is another story if, P accepted first and it was only after
acceptance that D withdrew his offer, in this case, there is already meeting of
the minds.
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Pananglitan, wa pa'y acceptance, and wa nako gipa kibaw ang akong
withdrawal.
Answer- If you have not communicated your withdrawal, so your offer is
therefore outstanding and can be subject to acceptance.
So there are 2 conditions: 1. Offeror can withdraw his offer, before
acceptance by the offeree, 2. Provided he communicated his withdrawal
before acceptance.
Civil law II 1-10-15 part 1 || 01:20:01 - 01:36:00 || Menchavez
If you do not communicate, the offer is still outstanding.
Kanus.a manka dili ka withdraw? The law continues: Unless the option is
founded upon a consideration something paid or promise.
Example
D, seller, P buyer. P asks for 10 days to decide. D initially says no, but P says
I will give you 15,000. D then accepts. This now a contract of option;
where one party is given a definite period of time to decide whether or not to
buy an item. This is a new contract, for 10 days to decide P pays 15000.
Now, is D allowed to withdraw the offer because there is another better
buyer? The answer is no. The earliest you can withdraw is after the period of
10 days. Ganina anytime, because there is no consideration. Even if another
buyer is offering better terms for the item, seller cannot withdraw.
Does it have to be money? NO. Promise. Bisan saag lang ang consideration. I
will let your child work in my office if you give me 10 days. Seller says ok.
There is a contract of option in this instance. This is sufficient. You cannot
withdraw unless the period expires.
If there is no consideration given, again it can be withdrawn anytime
provided that there is no acceptance and offeror will communicate his
withdrawal.
But is the option money of 15000 part of the purchase price? No. 15000 is
the consideration for the option contract. There are two different distinct
contracts that is the option: contract of sale 1.2M, contract of option 15k.
Another situation. What if P decides not to buy anymore. Is he allowed to
withdraw the 15000? NO. That was the consideration for the period.

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So: 1. the option money does not form part of the purchase price, and 2.
Neither can it be recovered if buyer does not buy. Why? The money is
consideration for the contract of option. You must pay for the full value of the
purchase price.

ADVERTISEMENT OF THINGS FOR SALE.

In the newspaper, the common reader would presume that the person who
caused the advertisement is the offeror, and the reader is the offeree. If dili
ta mu basag balaod mao jud na atong pasabot. Di ba? But basaha balaod.
Advertisement of things for sale are not definite offers, but mere an
invitation to make an offer. Nag advertise sila para naa mu offer nila ug
palit. It is just an advertisement of an invitation to make proposal to buy the
thing advertised. Para nako nag advertise gai ka, gusto ka ma halin. So nang
hagad ka sa imong gpang baligya. Pero ang balaod dili man. Unsa man d.ay
ni, merely proposal to buy the thing. Hayahaya ninyo noh. Kamoy ga
advertise, pero kami ga hagad. But then mao ni balaod.
Follow nato ni ha: Advertisement for a car, good running condition, etc2. You
call and want to buy. Okay. The buyer manifests his consent to the price. Is
there a contract of sale now? HOY OPLOK! Ikaw moy offeror, buyer, and the
one who cause the advertisement is the offeree. Therefore, pa abot unsay
tubag offeree. Kung mu ingon ang advertiser nga ayaw usa, wala pa. Pero
para nako ang advertiser jud ang offeror; kamahal anang pa advertise gasto2
paka. Gusto ka para ma halin, pero mu balibad jud ka? Pero ang balaod dili
man.
Civil law II 1-10-15 part 1 || 01:36:01 - 01:52:00 || Novabos
Reader of an advertisement is entitled to offer to buy.
Advertisement is an Invitation to make a proposal.
Acdg to law, Advertiser is the offeree while Reader is the offeror
So when reader calls, advertiser can refuse to accept.
Advertiser spends on ad yet he can refuse to take offer of reader.
Reader, as offeror, thus waits for advertiser to accept offer.
Here, law defies reality.
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Art. 1325. Unless it appears otherwise, business advertisements of things for
sale are not definite offers, but mere invitations to make an offer.
When therefore does an advertisement become a definite offer & thus
subject to immediate acceptance?
Ans. If advertisement contains all the material particulars, then it becomes a
definite offer, subject to immediate acceptance by the reader.
Eg, car for sale, Toyota vios, make, registration, color, owner, price, etc
advertisement now contains all material particulars, so this is a definite offer,
if reader is willing to buy, and once reader manifests acceptance to offer
then there is a perfected contract.
Another eg, Lot for sale, area in sq m, north, south, east, west boundaries,
owner, location complete info is a definite offer.
Thus, GR: advertisement which contains general info is merely an invitation
to make a proposal.
Exc: definite offer which contains all material particulars, subject to
immediate acceptance.
In reality, exc should be the general rule.

Art. 1326. Advertisements for bidders are simply invitations to make

proposals, and the advertiser is not bound to accept the highest or lowest
bidder, unless the contrary appears.
Eg, wanted bidders: construction of 3rd Mandaue-Mactan bridge.
Ad contains info on who is willing to construct eg, prospective value of 3b,
terms/conditions.
A, b, c are bidders: A 3b, B 4b, C 5b.
Is govt/state obliged to choose A who bid lowest?
Ans: No, Advertiser/state is not bound to accept the highest or lowest bidder
(Art. 1326).

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Aside: Highest bidder is chosen if one requires to raise the revenue/money
eg, purchase of rattan poles. But if project, lowest bidder is preferred so as
to lower cost. Thus, highest/lowest depends on nature of bid.
So in the example, advertiser is not bound to accept the lowest bidder since
advertiser looks at resources of lowest bidder equipment, labor, etc.
Advertiser cant therefore be forced to accept lowest bidder who wont be able
to deliver.
Yet, note Exc. Unless it appears in the advertisement that bid shall be
awarded to the lowest/highest bidder.
So if advertisement shows that project is awardable to the lowest bidder as
part of terms/conditions then project should be awarded.
But if advertisement is only general then choice is discretionary.

Civil law review II 1-10-15 part 2 || 00:00:01 - 00:16:00 || Pasatiempo

Who are incapable of giving consent? Sa ato pa, incapacity to consent. Okay,
Art 1327 and 1328 combined.

Art. 1327. The following cannot give consent to a contract:

(1) Unemancipated minors;
(2) Insane or demented persons, and deaf-mutes who do not
know how to write. (1263a)
Art. 1328. Contracts entered into during a lucid interval are valid.
Contracts agreed to in a state of drunkenness or during a hypnotic
spell are voidable

Minority of one of the contracting party. Who are minors? Below 18,
they are incapable to consent, dili sila maka appreciate sa consequences sa
ilang act tungod kay bata pa. mu enter gani kag contract unya ang usa minor
ang usa dili, defective ang contract ana, voidable. Nganu man? It is voidable
on account of minority of one of the contracting party.
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Kinsa pay incapable of giving consent? Sus class, insanity, grabi! May
nalang ang minority. Insanity class, meaning buang ka, nganung dili man ka
tugtan sa balaod, because you are not aware of what you are doing if you are
insane. So class, in civil law, they are incapable of giving consent, if you are
minor or if you are insane, or deaf mutes who do not know how to write.

Class, sa imung libro, deaf mutes who do not know how to write, pero class
questionable mana, pananglitan dili ka kabalo musuwat pero kusog kayo ka
mubasa, beh? You will know the contents of the contract because the
contents of the contact is understood by reading. Ug kabalo lang ka
musuwat unya dili ka kabalo mubasa, dili ka makabalo sa contents. Ang
contrato mahibaw an pia agi sa pag basa. So ang husto gyud ana no kay
deaf mute who does not how to read, mas maayo na.

Persons in the state of drunkenness, walay kalainan sa buang. Wa gyud

nay kalibutan ang mga hubog. Temporary insanity basta hubog paka. How to
prove the person is drunk? Kasayun ra ana, kitanag tanan kabalo unsaon na
oy, he cant walk steadily, murag higanti sa sinulog mag barag2, ug musulti
yungit! Manimahong bino pa gyud!

So pila naman tanan? Upat? Minority, insanity, deaf mute who does know
how to write, person in state of drunkenness. Naa pay ikalima, persons in the
state of hypnotism, actually sa libro, person under a hypnotic spell, ayaw
nana lisud lisura, Persons in the state of drunkenness, persons in the state of
hypnotism, ayaw nana layua imung huna2. Sa binisaya pa, kana bang
lamaton ka, ma influence ka sa nag pa tan aw nimu, move 3 steps forward,
mura kag robot, cge ha sayaw, you not acting on your own.

Civil law review II 1-10-15 part 2 || 00:16:01 - 00:32:00 || Plaza, Athena

Civil law review II 1-10-15 part 2 || 00:16:01 - 00:32:00 || Plaza, Athena

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Thus, there are 5 persons who are incapable of giving consent- minor,
insane, doesnt know how to write, under state of drunkenness, and under
hypnotism. If one of the contracting parties is incapable of giving consent,
the contract is voidable. However, if both are incapable of giving consent,
the contract is unenforceable.

In the case of insanity, there is an exception: lucid interval or a point in time

when an insane person temporarily gains sanity. Contracts entered into
during lucid interval are valid. If at the time of the execution of the
document, the person is sane, supervening incapacity does not affect the
validity of the contract. If at the time of execution, the person is insane, then
the contract is voidable. Thus, the state of mind at the time of execution of
the contract is crucial.

Theres another group of voidable contracts: those that are voidable due to
vitiated consent. Thus, there are two groups: voidable due to incapacity and
voidable due to vitiated consent.

Civil law review II 1-10-15 part 2

|| 00:32:01 - 00:48:00 || Plaza, Lady
Civil law review II 1-10-15 part 2 || 00:32:01 - 00:48:00 || Plaza, Lady
In force and violence, there is physical contact.
Examples:
1. Your arms were twisted thereby causing pain in order to secure your
signature.
- Here, violence is said to exist.
2. Juan was threatened by Pedro at gun point to sign a document. Juan
still refused to sign saying that he is a tough guy. However, Pedro
proceeded with shooting Juan thereby causing him pain. Thus, Juan
signed the instrument. What ground exists?
- FORCE OR VIOLENCE
- Why? In determining the ground, you have to consider the
proximate cause for the signing of the instrument. In this case, the
signing was not due to the intimidation of threatening to shoot Juan
but rather the actual shooting.
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3. The intimidation was authored by a third person asked by one of the
parties who is not a signatory.
- It will still annul the obligation.
Article 1336 provides:
Violence or intimidation shall annul the obligation,
although it may have been employed by a third person
who did not take part in the contract.
SIMULATION is the making the appearance of a contract which does not
exist.
Example: A deed of donation of a parcel of land was executed, when in truth,
a contract of sale is really intended by the parties so that lesser amount of
tax will be paid believing that donors tax is less than the capital gains tax.
However, upon payment of the tax due, they found out that donors tax in a
donation to strangers is much higher than capital gains tax. To what
transactions will the parties be bound? Will it be a contract of sale which was
the actual legitimate transaction or a contract of donation which is now
appearing in the instrument?
Article 1346. An absolutely simulated or fictitious contract is
void. A relative simulation, when it does not prejudice a third
person and is not intended for any purpose contrary to law,
morals, good customs, public order or public policy binds the
parties to their real agreement.
- But what is meant by real within the context of the law?
- Real means what is apparent, what can be seen, what can be read.
Therefore, in the above situation, they will be bound by the contract of
donation.
Civil law review II 1-10-15 part 2
|| 00:48:01 - 01:04:00 || Puracan
Civil Law Review II 1-10-2015 Part 2
00:48:01-1:04:00
So the contract is that of Donation. The deed is binding to the parties as the
real agreement.
What is meant by real agreement? One that can be seen or read. Thus, the
parties who executed a deed of donation is bound thereby and liable to ay
Donors tax.
What if you argue that the real transaction is a sale? But let us understand
what the law says? Why are they bound by the paper document which is
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donation? The parties are bound to their real agreement meaning what is
written on the document.
The reasons are:
1. They are guilty of estoppel
2. To penalize the parties for their deception and make them bound by
the written agreement
(we will follow what appears in the document because if we go
along with the originl intent of sale, we are encouraging parties
to defraud the government)
You cannot withdraw of belie what is written in the document

OBJECT OF THE CONTRACT

The contract has to have an object, otherwise it is void.
What must be the object of a valid contract?
May either be:
1. Things- must be within the commerce of men
Like bridges or plaza which are outside the commerce of men or
public dominion
Air that we breath cannot be sold-res nullius except forces of
nature brought under the control of science such as air in
gasoline station (then the gasoline station may sell it for your
covenience but this is usually sold for free.
2. Rights-must be TRANSIMISSIBLE
Not all rights are transmissible
i.e. a husband would transmit momentarily for a week marital
rights (to meet nocturnal needs) to a neighbor while he will go
abroad-> this is immoral and not allowed because purely
personal
3. services- must be LAWFUL AND POSSIBLE
enlist services of young women to cater flesh-ure not alowed
illegal, unlawful and immoral
1 kilo rice, wood and match and cook this under the seathis is
lawful but not possible
CAUSE OF A CONTRACT
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-cause or the impelling reason why a paty enters into a contract
Example: Cause: If I buy from you a Piano ad I will pay you 12,000.
What is the cause? It will now depend to whom the question is asked.
Seller : the need for money
Buyer: I love and know how to play the piano
The promise or prestation is the cause or consideration for the other party
also.
Example:

In a contract of donation which is of pure beneficience.

Donee: the thing donated is the cause

Donor: the pleasure of giving, generosity or magnanimity.
Is cause the same as motive? What is the cause or impelling reason for
entering into the contract? There is a big difference. As provided by law, the
motive of the contracting party is difference from the cause thereof.
( outside of the review room, cause and motives are synonyms but according
to the context of the law they are different.)
Civil law review II 1-10-15 part 2

|| 01:04:01 - 01:23:41 || Rosales

Rosales Civil law 1-10-15 part 2 1:04:01-end

1351. The particular motives of the parties shall differ from the cause
thereof. Heres the proof.
Cause vs. Motive
1. C-it is an essential element of the contract; M-not an element
2. C-contract without a cause or unlawful cause is void; M-without a
motive, the contract is still valid
3. C-if the cause is illegal, the contract is void; M-if motive is illegal, it
does not affect validity of the contract
4. C-the cause is always known; M-motive is generally unknown, unless
disclosed voluntarily
1352. Contract without a cause or with unlawful cause produces no effect
whatever. Contract with unlawful cause equivalent to no cause. It is void.

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Civil law review II 1-17-15 || 00:00:01 - 00:16:00 || Semillano

Civil law review II 1-17-15 || 00:00:01 - 00:16:00 || Semillano
Art. 1352. Contracts without cause, or with unlawful cause, produce no effect
whatever. The cause is unlawful if it is contrary to law, morals, good customs,
public order or public policy.
I.

Contract WITHOUT a cause, NO CAUSE! (nokos). So unsay status sa

contract? VOID! (buwad)
Because cause is an essential element of a contract.

Art. 1353. The statement of a false cause in contracts shall render them void,
if it should not be proved that they were founded upon another cause which
is true and lawful
II.

Contract with a FALSE CAUSE. = VOIDABLE

Nagpalit kog calculator class. Dayon ang resibo kay libro. Therefore
false cause. Ngano man? Because the true cause is the calculator.
Ang gituyo nako pagpalit kay calculator pero ang nakabutang sa
resibo kay libro. FALSE kay di man tinuod na gipalit nako.
So unsay status? Ang inyong libro kay VOID man, ang gibutang, nga
di tinuod.

Unless the true cause is proven. Atong ibutang ha sa libro nimo kay VOID.
Kung di kuno nimo mapatinud-an ang tinuoray nga cause, class, VOID siya.
But if imong mapamatudan, then it becomes VALID. Ang qualification man
niya kay if it should not be proved that they were founded upon another
cause which is true and lawful
Wa lang ko, nagpakahilom lang ko sa tibuok lungsod kung unsay tinuoray
nga cause, therefore magpabilin na sya nga void. Ngano man? False cause
man. Alright.
CORRECTION: While the law says VOID, the correct status is VOIDABLE. Kay
naa man sa kaso gud. Unya bisag wa pa sa kaso, common sense man sad. If
you can prove the true and lawful cause, it becomes valid. Incongruous! Kay
wai VOID contract nga ma VALID. Diba? The statement of false cause is
actually VOIDABLE! Maprubahan na gani nako, what will happen to the
contract? It becomes valid. Kung di nako maprubahan? It remains VOID-ABLE.
Naa bay void contract nga mavalid?
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If the true and lawful cause be proven, it becomes valid. If dili mapamatudan, magpabilin syang void-able. Reason ana kay wa may void nga ma valid.
Art. 1354. Although the cause is not stated in the contract, it is presumed
that it exists and is lawful, unless the debtor proves the contrary.
III.

Cause is not stated. = VALID, presumed EXISTS and LAWFUL.

Example, contract of sale. That for and in consideration of (blank), I
hereby cede, transfer and convey the aforesaid motor vehicle
described above free from all liens and encumbrances. Tungod ug
alang sa konsiderasyon nga wai sulti, akong gi balhin, gibaligya,
gibalhin ang pagpanag-iya sa sakyanan nga akong gilarawan sa
unahan nga wai kompromiso bisag kinsa kun prenda.
Unsay consideration nako ani? Ang akong nadawat, blank. Unsa
nang blank? Makahibaw ka sa akong nadawat? Wa man nagbutang
ug amount. Unsay lami anang blank?
Unsay status? Almost right is still wrong. Naay cause ana class, pero
not stated! Kay kung wala, void na. Naa na pero not stated.
There is a presumption that the cause does EXISTS.
There is another presumption that the cause is LAWFUL.
Therefore the contract is VALID. Although not stated, the law
presumes the existence and lawfulness of the cause.
Pero kung maprobahan diay nga wa gyuy cause maong wa gi state,
ah therefore, CONTRACT WITHOUT A CAUSE, therefore VOID.

The omission is the cause, that is presumed by law to be existing and lawful.
Therefore the deficiency in the contract is supplied by the presumption of the
law.
Civil law review II 1-17-15 || 00:16:01 - 00:32:00 || Uy, Philip
Art. 1354. Although the cause is not stated in
the contract, it is presumed that it exists and
is lawful, unless the debtor proves the
contrary. (1277)
Presumed by law to be existent. Not only existent, but it is likewise presumed
by law to be lawful. Therefore, the deficiency of the contract is supplied by
the presumption of the law.
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Ang wa mabutang sa dokumento, ang balaod nato mu supplement. Ingon

ang balaod, ang cause is presumed, ang ikaduha, it is lawful. Duha ang
presumption, existence ug lawfulness. Therefore, di kinahanglan nga isuwat
nako diri. Ngano man? It is presumed by law already. Ngano diayg di nako
ibutang, naa may presumption. So valid.
Perog mu ingon gani ka nga I will prove that there is no consideration stated
because I know there is no cause whatever, so therefore there is none. Mu
succeed gani ka class nga wa gyud diay cause, mao diay way ikabutang, ahh
kana. Mahug nana nga contract without a cause, and therefore, void.
Probahan sa nimo nga way cause para ma void. Di gani ma prove nga way
cause (inaudible). Ngano man? Presumed by law ang iyang existence.
Although the cause is not stated, it is presumed to exist and is lawful.
So duha ang presumption, ang existence of the cause and lawfulness of the
cause. Therefore, what I fail to state in the contract of sale is supplemented
by the presumption.
Mu allege ba ko class kung naa ko sa accused that the accused is innocent?
Mu allege bako ana? No kai naa naman tay presumption that in all criminal
cases the accused is presumed innocent. Karun sad, naa man tay
presumption that the cause is lawful and the cause exists. Unya nag cause
lawful pagyud, ngano ibutang paman nako diha nga naa naman. So not
necessary.
Although di na mao pag himo ug document nimo. Ngano man? Kumpletohi
ug himo imong document. Nay cause on the part of the buyer, nay cause on
the part of the seller. Di na proper, pero tungod lang ang cause wa ma state,
dili na ingnon nga void na siya. Ngano man? That is presumed by law to be
existing. That is presumed by law to be lawful. Unsa pamay imo? Ang
deficiency has been supplied, so valid.
But once you can prove that there is actually no cause, that is why nothing
has been written as to the cause or consideration, it becomes a contract
without a cause. And after having proved, therefore void.

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Art. 1355. Except in cases specified by law,
lesion or inadequacy of cause shall not
invalidate a contract, unless there has been
fraud, mistake or undue influence. (n)
Lesion in the case of the price. Ngano diayg barato, tanan tao diay
mubaligyag mahal? Naa may uban tao nga ahhh kibaw ko 10,000 ni pero
ako ni ibaligya ug 1,000. Muingon dayun kag ahhh lesion in the case of the
price so void na. ahhh sus class ka daghan rag rason ana. Gibaligya na nimo
ug 1,000 kai nanguyab ka sa anak niya, ang2x mahalon nimo. Therefore, di
na tungod kai wa siya kibaw. Lesion in the case of the price is not a reason
UNLESS there is defect in the manner of giving consent.
Art. 1350. In onerous contracts the cause is
understood to be, for each contracting party,
the prestation or promise of a thing or service
by the other; in remuneratory ones, the service
or benefit which is remunerated; and in
contracts of pure beneficence, the mere
liberality of the benefactor. (1274)
Kanang cause noh, dili na permanent. Mag agad na kung kinsay nangutana,
depending on the person it is addressed. Pananglitan, siyay seller unya akoy
buyer. Piano pananglitan gipalit nakog 12,000. Pangutan-a siya, ngano
gibaligya man to nimo ang piano? Ingon siyag I needed the money. Oh
nawa, kwarta iyang tuyo.
Mao ba sad na akong answer kung akoy pangutan-on? Because I want to play
piano, I want to own it. Diba? The cause or consideration is dependent upon
to whom the question is addressed. Kai di man parihas. Ngano man? The
promise or prestation of the other, mao nay cause.
Contract of pure beneficence pananglitan, contract of donation. Akoy
donor siyay donee, muhatag ko ug yuta. Unsa iyang consideration class? The
property donated. Para niya. Donee ngano niapil man ka ani? interesado ko
ana kai hatagan gud kog yuta. Anha ko mag balay diha. Kinsay di malipay.

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Pero kung ako ang pangutan-on, uy donor, unsa may madawat nimo gikan
sa donee? Apil2x man ka anang contratuha. Naa bakuy nadawat? Wa.
Contract of pure beneficence. Unsa may consideration nako class? The
magnanimity, kanini-ang, generosity (mere liberality of the benefactor). Ma
quantify na? dili diba?

Remuneratory contract
Pananglitan remuneratory, ang company nanamilit naka, mu retire ka na.
hatagan kag lump sum. Dili utang ha. Ngano man? Tungod sa serbisyo imong
gihatag nila. Dugay kayo, 50 ka tuig kang trabaho nga honest, efficient
service. Mao na ang company class na wili nimo, ig retire nimo, ilang
kabubut-on hatagan kag lump sum, half million. Unsay consideration?
Because of the past services rendered. Iphon na nila.
Bisag bonus, pwede kai di mana utang. Dili na demandable sum nila, dili na
part sa retirement. Bonus na, ngano man? Tungod sa ka maayo niya mu
serbisyo.
Sa imo pana class, parihas rana ug mukaon ta, muhatag ka ug tip. Puno nga
kwarta gawas sa bayad. Ang bayad nimo run, 1,000. Imo siya gihatagan ug
1,100. Ngano man? Iya natung 100 kai maayo siya mu serbisyo nato.

Art. 1351. The particular motives of the parties

in entering into a contract are different from
the cause thereof. (n)

Unsay difference sa motive ug cause? Ari sa civil law review:

Cause

motive

Is an essential element.

Not an element

If the cause is unlawful, contract is

If motive unlawful, will not affect

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void

validity of contract

Cause is always known

Motive is unknown

Ex. Of unlawful cause

-

Cause is unlawful, mupalit kag shabu. Valid ang contract?

Cause is unlawful, therefore void.

Ex. Of unlawful motive

-

Mupalit ka ug arsenic powder kai ganahan nimo patyun

imong asawa kai saba-an kayo. Imong motive is to
administer poison to your wife. Therefore imong motive
unlawful. Does that invalidate the contract of sale of
arsenic powder? No, the sale is valid. Unsay labot nimo sa
balaod anang motive nimo diha.

Ex. Of cause is always known

-

Kung mupalit ka naa man gyud nay i-issue nga resibo.

Mahibal-an man gyud na unsa imong gipalit.
o Ang motive ma hibaw-an bana? (gave example about
radio announcement of husband telling relatives of
his wife he is going to kill her. Dali ra kayo ka
madakpan ana. )

Civil law review II 1-17-15 || 00:32:01 - 00:48:00 || Uy, Josie

Josie Uy 1-17-15 || 00:32:01 - 00:48:00 ||
Cause is always known. Ang motive? Mahibaw-an ba? Motive is unknown. Wa
ka kabaw unsay huna-huna sa tao. Wa ta kabaw unsay tuyu-an sa pagpalit
nya sa pandesal.

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Basta maka differentiate na mo og motive og cause. Dli gani Civil Law ang
lecture, pareho ra na sla duha. What is the purpose, motive, aim or goal? Oh
dba pareho ra sla.
Pero Civil law gani na class, The motive by which the parties enter into a
contract is different from the cause thereof.
Form of Contracts
Essential Elements of a Contract:
1. Consent
2. Cause or consideration
3. object
All 3 equals a valid contract. But, just because all these 3 elements are
present, does not mean that the contract is valid. Why? Because you have
not yet considered the form. Form is important in some cases, for the validity
of the contract.
For example, I will donate to you a parcel of land. Cge imo na ni, ang
documento permado na. Naa na nimo. Naay acceptance. Pero void ghapon ni
cya. Ngano man? Kelangan public document, kelangan naka notaryo. So the
donation is void. Dili ma rehsitro kai dili public instrument ang documento.
Another example, mo huwam kog kwarta. 100,000 akong huwamon, 10%
ang akong interest or 10,000.00 Tingbayad na. Hatag kog 100,000, so
kuwang. Ngano kuwang man? Kai wa ko nihatag og interest. Aw naa diay
interest? O, kay nagsabot man ta. Valid diay na na wala man nato gisuwat?
Nag sabot bya ta. Dli oi. An agreement to pay interest has got to be in
writing. The contract of loan is valid, but the payment of interest is void.
So if a contract is not in proper form, it may still be valid but not enforceable.
Contract of antechrisis. real property is the object, whatever fruits gathered
goes to the payment of the obligation. Which part of the obligation is paid
first, the principal or the interest? The interest first, whatever excess of the
fruits gathered goes to pay the principal.
Balik ta sa yuta. Baligya kog yuta. Contract of sale. Verbal. Parcel of land. So
unsay status sa contract? ORAL SALE. So unsay status sa contract? It is valid.
Why? All the essential elements are there. Consent, cause or considereation,
object. What if the seller refuses to sign the deed of absolute sale? So the
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remedy of the buyer is to go to court and the court can compel the seller to
sign the deed of conveyance because all the essential elements of a contract
are there.
So the contract is not void but valid. What about the statute of frauds, which
states that sale of real property or any interest therein has to be in writing?
Statute of frauds only applies to purely executory contracts. Purely executory
contracts means that there has been no performance of any part of the
contract, however slight. Remember that nadawat na ang consideration,
therefore, partially executed na. Statute of frauds cannot apply. When the
payment is already with the seller, then statute of frauds cannot apply to
partially executed contracts. Therefore, the title may be transferred
assuming that all other requisites are complied with.
Civil law review II 1-17-15 || 00:48:01 - 01:04:00 || Yu, Nyera
Civil law review II 1-17-15 || 00:48:01 - 01:04:00 || Yu, Nyera

For Enforceability, the form is important because the Registry of Deeds will
not register. Yes, the sale is still valid but you need the form for
enforceability.

Article 1357 you can compel the party to sign in order to cure the defect
(given that the agreement was made orally)

So you need to have it notarized for you to register. Therefore, here you can
enforce your right to have the property registered under your name.

Remember, an unenforceable contract is valid. It is just that they did not

follow the prescribed form.

For Convenience, there is no question that the contract is valid. Is that

enough? No there is a need for the document to be notarized. Art 1529 (?), it
was must be in a public instrument. So for the convenience of the parties, if
the document was not notarized, akong pa notaryohan, para akong register.
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Remember, if not notarized the document is still a private document.

DEFECTIVE CONTRACTSn (arranged in the order of validlity):

1.
2.
3.
4.

Rescissible
Voidable
Unenforceable
Void

Classificat
ion

Status
Basis
of the of
Contrac Defect
t

Rescissibl Valid
e Contract until
(1380)
rescind
ed

Lesion
and
Financi
al
Damag
e

Nature
of
Action

Who
Files
Actio
n

Legal
Effec
t

Prescripti
on

Ratificati
on

Action
for
Rescissi
on

The following Contracts are Rescissible Article 1381:

Art. 1381. The following contracts are rescissible:

(1) Those which are entered into by guardians whenever the wards
whom they represent suffer lesion by more than one-fourth of the value of
the things which are the object thereof;
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When may a person be under guardianship:

1. Minority
2. Not a minor but cannot administration on his or her own; you need
someone to act on your behalf

**
Example:
M ward (minor)
G guardian

Property of M 1 hectare. G leased the property to P and FMV for lease

purposes is P10,000/monthly. G had the properted rented form Php 7,000.00.
Alkansi? Yes.

Did W suffer a lesion from the contract? Yes, P3,000. How much lesion must
be suffered by W in order that the contract may be rescinded? More than
of the FMV, hence, more than P2,500 (10k/4=2.5k).

Action for Rescission to set aside; the same meaning as annulment but the
latter is not used because it refers to voidable. Therefore if rescissible
contract, action for rescission.

(2) Those agreed upon in representation of absentees, if the latter

suffer the lesion stated in the preceding number;

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Example:

A- Absentee
Civil law review II 1-17-15 || 01:04:01 - 01:20:00 || Susvilla
Civil law review II 1-17-15 || 01:04:01 - 01:20:00 || Susvilla
Kini si A, wa na gyud ni ig-dungog. Kini si I, iyang igsoon. Ingon si I, Ang
iyang bahinan, ma-ako na to. Naa may giingon si sir namo, accretion sa
succession. Art. 1015, NCC, accretion: it is added or incorporated to the coheir. Duha ra sila ka igsoon ug patay na ilang parents. Nagdahum si I na
patay si A, therefore accretion. I had the place worth P10,000 rented for only
P6,000. But then at a given time, si A kay nipakita man. Buhi diay siya. Sus,
dagko ra ba ug braso, himsog pa kaayu. Alright, so, ingon si A, asa man diay
akong bahin diay? Ingon si I, Nah, abi nako ug patay na ka. Unya accretion
na, ako na lang gipa-abangan para maka-derive ko ug income. Ang abang
kay P6,000when the value of the rent should have been P10,000. So, alkanse
na sya.
(3)Those undertaken in fraud of creditors when the latter cannot in any other
manner collect the claims due them;
Upon maturity, D did not pay an obligation worth P1M. Nangingil si C. To
avoid payment to C, D who owns a parcel of land, sold the land to B. Ang
halin kay gipalit ug white rabbit na may formalin ug marshmallow. So unsa
may remedy ni C? Since the sale of the land was done in fraud of C, the law
allows C to rescind the contract of sale. C vs. D and B. Upon rescission, the
result is to return what has been received. Ig-uli gani sa titulo sa yuta, gikiha
man nimo sila, then attachment follows. Therefore, the property will be
under the custody of the court. If di gyud mobayad si B, i-auction sale na
lang na.
(4) Those which refer to things under litigation if they have been entered into
by the defendant without the knowledge and approval of the litigants or of
competent judicial authority
Ayaw mo dayun ug palit sa butang nga gi-boroka. Di ba maako sir? Naa ruy
yuta, na-boroka na sya pending sa RTC, ug paliton ko na, class, ayaw palita,
na-boroka gud na; tingali diay ug ang imong napalit napildi, di ba sayang ra?
Ownership is still uncertain. Tingali nipalit ka gikan sa taw na dili tag-iya kay
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napildi gani. So nipalit ka lang ug gubot ug kagul-anan. Ayaw palita kay
rescissible pa na.

Pila la may lesion gikinahanglan? The law says lesion of MORE THAN ONEFOURTH. Pila man sa P10,000 na value? P2,500. Pila may alkanse? 3,000,
sobra ba na sa ? Yes. Kinahanglan nga ang lesion kay more than . Ayaw
kalimti ang word nga MORE. Kay kung alkanse lang ug exactly , it is not
rescissible.

The basis of defect of rescissible contract is Lesion or Financial Damage. In

law, it means inadequacy or insufficiency of the price.
A rescissible contract can be enforced because it is a valid contract until
rescinded.
Status of the contract: valid until rescinded
Name of the action to be instituted in court: Action for rescission.
Who will file the action?: Any person, a party or not, provided he suffered
from lesion. Just like the Creditor defrauded, he is not the party to the
contract sale but he can file the action for rescission since he suffered from
lesion.

Legal effect of rescission: Article 1385.Rescission creates the obligation to

return the things which were the object of the contract, together with their
fruits, and the price with its interest; consequently, it can be carried out only
when he who demands rescission can return whatever he may be obliged to
restore.
Neither shall rescission take place when the things which are the object of
the contract are legally in the possession of third persons who did not act in
bad faith.
In this case, indemnity for damages may be demanded from the person
causing the loss. (1295)

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-

If di ka kauli sa imong gidawat, dili ka ka-file ug rescission. Mo-file gani

ka ug rescission dapat andam ka mouli sa imong nadawat.
If ang acquirer kay in good faith, di na na ma-recover oi. Makapangayo
ra ka ug damages though.

So, in what instances may a person be not permitted to file an action for
rescission?
1. He cannot return what he receive
If the object of the contract is in the hands of a person who is in good faith.
Civil law review II 1-17-15 || 01:20:01 - 01:41:00 || Santos
Civil law review II 1-17-15 || 01-20-01 01-41-00 || Santos
Q: what is the prescriptive period in bringing the action?
A: Generally within 4 years.
Q: Why generally?
A: because it is flexible.
Q: When is it reckoned from?
A: From the time the guardianship ceases. When does guardianship ceases?
When you reach the age of majority which is 18 years old. Therefore, the
prescriptive period ends when you reach 22 (18 + 4).
A: In case of absentee. It is from the date of reappearance.
Example: Creditor files an action for rescission of a contract of sale within 4
years.
Q: When do you base the 4 years? The date of contract?
A: No. From the date of the registration of the sale at the register of deeds.
Q: What are the instances where the contract of sale is under litigation and it
is not rescissible?
A: 1) if the transaction or conveyance is approved by the judge of the court
where it is pending. It is presumed that the judge has acted for the best
interest of the parties.
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2) If the party litigants consented to the sale.

Q: can you ratify a rescissible contract?

A: not applicable. It is already valid.

Voidable
Status of the contract: valid until annulled.
Basis of defect: Consent
Name of the action: Annulment
Who will file: must be a party to the contract. Either principal of subsidiarily.
Legal effect: return what may have been received.
Prescriptive period: generally within 4 years. Depends on the ground for
rescission.
Can you ratify? Yes

Unenforceable contracts
Basis of defect: Art. 1403. The following contracts are unenforceable, unless
they are ratified:
(1) Those entered into in the name of another person by one who has been
given no authority or legal representation, or who has acted beyond his
powers;
(2) Those that do not comply with the Statute of Frauds as set forth in this
number. In the following cases an agreement hereafter made shall be
unenforceable by action, unless the same, or some note or memorandum,
thereof, be in writing, and subscribed by the party charged, or by his agent;
evidence, therefore, of the agreement cannot be received without the
writing, or a secondary evidence of its contents:

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(a) An agreement that by its terms is not to be performed within a year from
the making thereof;
(b) A special promise to answer for the debt, default, or miscarriage of
another;
(c) An agreement made in consideration of marriage, other than a mutual
promise to marry;
(d) An agreement for the sale of goods, chattels or things in action, at a price
not less than five hundred pesos, unless the buyer accept and receive part of
such goods and chattels, or the evidences, or some of them, of such things in
action or pay at the time some part of the purchase money; but when a sale
is made by auction and entry is made by the auctioneer in his sales book, at
the time of the sale, of the amount and kind of property sold, terms of sale,
price, names of the purchasers and person on whose account the sale is
made, it is a sufficient memorandum;
(e) An agreement of the leasing for a longer period than one year, or for the
sale of real property or of an interest therein;
(f) A representation as to the credit of a third person.
(3) Those where both parties are incapable of giving consent to a contract.

Status: cannot be enforced even in a court action

Name of the action: No name
Who will file: no one
Legal effect: none
Prescriptive period: none
Ratification: yes. Art. 1407. In a contract where both parties are incapable of
giving consent, express or implied ratification by the parent, or guardian, as
the case may be, of one of the contracting parties shall give the contract the
same effect as if only one of them were incapacitated.

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Example: Minor ang both parties. Dili voidable but unenforceable. If ratified
by one party, voidable. If ratified by the other party, now, it is valid.
Void Contracts:
Status: no effect
Basis of defect: Art. 1409. The following contracts are inexistent and void
from the beginning:
(1) Those whose cause, object or purpose is contrary to law, morals, good
customs, public order or public policy;
(2) Those which are absolutely simulated or fictitious;
(3) Those whose cause or object did not exist at the time of the transaction;
(4) Those whose object is outside the commerce of men;
(5) Those which contemplate an impossible service;
(6) Those where the intention of the parties relative to the principal object of
the contract cannot be ascertained;
(7) Those expressly prohibited or declared void by law.

Name of the action: void contracts , declaration of nullity, and so forth.

Who will file the action: any person adversely affected by the contract, not
necessarily a party.
Legal effect: if not yet performed, do not perform. If performed, return.
Prescriptive period: it will not prescribe. Imprescriptible.

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