CIVIL CODE OF THE PHILIPPINES

TITLE Vl
SALES
Chapter 1

NATURE AND FORM OF THE CONTRACT

Article 1458. By the contract of sale one of the contract-

ing parties obligates himself to transfer the ownership of
and to deliver a determinate thing, and the other to pay
therefor a price certain in money or its equivalent.
A contract of sale may be absolute or conditional.

COMMENT:
! "#$! %&'()*! +),-).
Sale is a contract where one party (seller or vendor)
obligates himself to transfer the ownership of and to deliver
a determinate thing, while the other party (buyer or vendee)
obligates himself to pay for said thing a price certain in money
or its equivalent. (See Art. 1458, Civil Code).

(2) Historical Notes

Under Roman Law, a sale was termed avenditio. Today,
the French refer to the contract as a venta, while the Span-
iards call it a venta. !"#$ %#&'()(*'$ *+$ )"#$ ,*')-.,)$ *+$ /.0#$ ('$
Art. 1458 is taken from Art. 1445 of the Spanish Civil Code,
except that under said Spanish Code, the obligation of the
vendor was merely to deliver the thing sold, so that even
if the seller was not the owner, he might still validly sell,
subject to the warranty to maintain the buyer in the legal and
peaceful possession of the thing sold. The Civil Code requires

1
Art. 1458 CIVIL CODE OF THE PHILIPPINES

not only delivery but also the transfer of the ownership of the
thing sold. (Report of the Code Commission, p. 141). However,
the vendor need not be the owner at the time the sale is
1#-+#,)#%2$3)$(/$/4+&,(#')$)".)$"#$(/$)"#$*5'#-$.)$)"#$)(6#$)"#$
thing sold is delivered. (See Art. 1459, Civil Code).
Query: Suppose Art. 1458 did not specify that the seller
must transfer the ownership of the object, does he still have
this obligation?
Answer: Yes, for after all, this transfer of ownership is
clearly the fundamental aim of the contract. A buyer is not
interested in a mere physical transfer: he is after ownership.
(See 3 Castan 12-13).

(3) Essential Characteristics of the Contract of Sale

(a) Consensual (as distinguished from real), because the
contract is perfected by mere consent.
(NOTE: A real contract is one perfected by delivery,
e.g., the contract of deposit or commodatum.)
(b) Bilateral reciprocal, because both parties are bound by
obligations dependent upon each other.
(c) Onerous, because to acquire the rights, valuable consid-
eration must be given.
(d) Commutative, as a rule, because the values exchanged
are almost equivalent to each other.
(NOTE: By way of exception, some contracts of
sale are aleatory, i.e., what one receives may in time
be greater or smaller than what he has given. Example:
The sale of a genuine sweepstakes ticket.)
(e) Principal (as distinguished from an accessory contract),
because for the contract of sale to validly exist, there
is no necessity for it to depend upon the existence of
another valid contract. (Examples of accessory contracts
are those of pledge and mortgage.)
(f) Nominate (as distinguished from an innominate contract)
because the Code refers to it by a special designation or
name, i.e., the contract of sale.

2
CIVIL CODE OF THE PHILIPPINES Art. 1458

(4) Elements of the Contract of Sale

(a) Essential elements (those without which there can be no
valid sale):
1) Consent or meeting of the minds, i.e., consent to
transfer ownership in exchange for the price.
2) Determinate subject matter (generally, there is no
sale of generic thing; moreover, if the parties dif-
fer as to the object, there can be no meeting of the
minds).
3) Price certain in money or its equivalent (this is the
cause or consideration). (The price need not be in
money.) (Republic v. Phil. Resources Dev. Corp.,
L-10414, Jan. 31, 1958).

Aguinaldo v. Esteban
GR 27289, Apr. 15, 1985
A contract of sale of property, without con-
sideration, and executed by a person who is of low
intelligence, illiterate, and who could not sign his
'.6#$ *-$ .+&7$ "(/$ )"4686.-9:$ (/$ ;*(%2

Leabres v. CA
GR 41837, Dec. 12, 1986
A receipt which merely acknowledges the sum
of P1,000, without any agreement as to the total
purchase price of the land supposedly purchased,
nor to the monthly installment to be paid by the
buyer lacks the requisites of a valid contract sale,
namely: (a) consent or meeting of the minds of the
parties; (b) determinate subject matter; (c) price
certain in money or its equivalent, and, therefore,
the sale is not valid nor enforceable.

(b) Natural elements (those which are inherent in the con-

tract, and which in the absence of any contrary provision,
are deemed to exist in the contract).

3
 CONTENTS
VolumeV

Title VI. SALES ....................................................................................... 1

CHAPTER 1 NATURE AND FORM
OF THE CONTRACT ................................................ 1
ARTICLE 1458 ................................................................................... 1
!"##$%&'()*+(,-./01(2034056(*7()8+(9:;<=>:?./(%=<0;6(*7()@+($;-
;04<:./(!A.>.?<0>:;<:?;(=B(<A0(!=4<>.?<(=B(-./06(87()C+($/0D04<;(
=B( <A0( !=4<>.?<( =B( -./06( @7( EFG:4./5=( HI( $;<0J.46( KL( 8M8NO6(
EP>I( *Q6( *ONQ6( @7( R0.J>0;( HI( !E6( KL( C*N@M6( 20?I( *86( *ONS6(
@7( )Q+( -<.F0;( :4( <A0( !=4<>.?<( =B( -./06( C7( )S+( T:45;( =B( -./0;6( C7(
U0=P/01;(9=D0;:<0(HI(!=G><(=B(EPP0./;6(RVS*S8@6(20?I(8S6(*ONC6(
S7(W.DJ./0;(HI(!=G><(=B(EPP0./;6(KL(QCXMX6(Y0JI(8N6(*ON@6(S7(
E/D045>.( HI( ZE!6( KL( MS***6( %=HI( 8*6( *OO*6( S7( -P;I( [:H04?:=(
\.J.;.(.45($/04.(!.4<=;(\.J.;.(HI(!E6(0<(./I6(KL(*8CXCQ6(#.](
8*6(*OO@6(N7(90:>;(=B(L=D.4.(Z4F^GF<:>=6(0<(./I(HI(-P;I(R0=4([I(
!.;./;(_(R:/:.(!I(!.;./;6(0<(./I6(KL(*@CM*N6(EGFI(8X6(8XX*6(N7(
"><:F.;(.45(!=I(HI(90>>0>.6(KL(@SXON6(`.4I(8*6(*ON@6(O7()M+(,-./01(
2:;<:4FG:;A05(B>=D(,2.<:=4(:4(U.]D04<1()E5^G5:?.?:=4(04(U.F=6(
=>( 2.?:=( 04( U.F=( =>( 2.?:=( 04( -=/G<GD+6( O7( )N+( \.>( aG0;<:=46(
*X7()O+(,!=4<>.?<(=B(-./01(2:;<:4FG:;A05(B>=D(,!=4<>.?<(<=(-0//16(
*X7( )*X+( ,-./01( 2:;<:4FG:;A05( B>=D( ,E;;:F4D04<( =B( U>=P0><]( :4(
Y.H=>(=B(!>05:<=>;1()!0;;:=4(=>(!0;:=4(50(\:040;+6(**7()**+(,-./01(
2:;<:4FG:;A05(B>=D(.(,R=.416(*87()*8+(,-./01(2:;<:4FG:;A05(B>=D(
,R0.;016(*87()*@+(T:45;(=B($b<>.^G5:?:./(Y=>0?/=;>0(-./06(*8I
ARTICLE 1459 ................................................................................... 13
!"##$%&'()*+(R.cBG/40;;(=B(<A0("J^0?<(.45(L:FA<(<=(&>.4;B0>(
"c40>;A:P6(*@7()8+(R:?:<("J^0?<6(*@7(E><.<0;(.45(U=^.;(HI(d>J:6(0<(
./I6(RV8OC8*6(`.4I(@X6(*OM*6(*@7()@+(&>.4;B0>(=B("c40>;A:P6(*C7()C+(
!=DD04<(=B(<A0(!=50(!=DD:;;:=46(*Q7()Q+(Z//G;<>.<:H0(!.;0;6(*S7(
-.4<=;( HI( #.?.P:4/.?( .45( U:4/.?6( Q*( UA:/I( 88C6( *S7( R:?A.G?=( HI(
"/0F.>:=(.45("/0F.>:=6(C@(UA:/I(QCX6(*S7(d](U:.?=(HI(#?#:?e:4F6(
0<(./I6(*X(UA:/I(8NS6(*S7(#.><:4(HI(L0]0;6(0<(./I6(O*(UA:/I(SSS6(*M7(
20/PA0>(&>.50;(!=>PI(HI(ZE!6(KL(SO8QO6(`.4I(8S6(*ONO6(*MI
ARTICLE 1460 ................................................................................... 18
!"##$%&'()*+(#0.4:4F(=B(20<0>D:4.<06(*N7(fG(&0e(HI(K=4g./0;6(
8O(UA:/I(@NC6(*O7()8+(LG/0(:B(%0c(EF>00D04<(:;(%005056(*OI

vii
ARTICLE 1461 ................................................................................. 19
!"##$%&'( )*+( &A:4F;( h:<A( .( U=<04<:./( $b:;<04?06( *O7( )8+(
$DP<:=( L0:( -P0>.<:( .45( $DP<:=( -P0:6( 8X7( )@+( [.:4( 9=P0( =>(
Expectancy, 21.
ARTICLE 1462 ................................................................................. 21
!"##$%&'()*+(-./0(=B(K==5;6(8*7()8+(YG<G>0(K==5;6(8*I
ARTICLE 1463 .................................................................................. 22
!"##$%&( )*+( -./0( =B( .4( d45:H:505( Z4<0>0;<6( 887( )8+( -=G>?0(
of Article, 22.
ARTICLE 1464 ................................................................................. 23
!"##$%&'(-./0(=B(-A.>0(:4(.(-P0?:3?(#.;;6(8@I
ARTICLE 1465 .................................................................................. 23
!"##$%&'(-./0(=B(&A:4F;(-GJ^0?<(<=(.(L0;=/G<=>](!=45:<:=46(
23.
ARTICLE 1466 .................................................................................. 24
!"##$%&'()*+(2:;<:4?<:=4;(\0<c004(.(,!=4<>.?<(=B(-./01(.45(
.4( ,EF04?]( <=( -0//1( )/:e0( .( !=4;:F4D04<( B=>( -./0+6( 8C7( )8+( \.>(
aG0;<:=46(8C7(aG:>=F.(HI(U.>;=4;(9.>5c.>0(!=I6(@N(UA:/I(QX*6(
8Q7( T0>( .45( !=I6( R<5I( HI( `=;0( \I( R:4F.56( RV8XNM*6( EP>I( @X6(
*OM*6(8SI
ARTICLE 1467 .................................................................................. 26
!"##$%&'()*+(LG/0;(<=(20<0>D:40(:B(<A0(!=4<>.?<(:;("40(=B(
-./0( =>( .( U:0?0( =B( h=>e6( 8S7( Z4?A.G;<:( HI( !>=Dc0//6( 8X( UA:/I(
C@Q6(8M7()8+(-?A==/;(=B(&A=GFA<6(8M7()@+(aG0>]6(8MI
ARTICLE 1468 .................................................................................. ( 8M
!"##$%&'( LG/0;( <=( 20<0>D:40( hA0<A0>( !=4<>.?<( :;( "40( =B(
Sale or Barter, 28.
ARTICLE 1469 .................................................................................. 28
!"##$%&'()*+(!0><.:4<](=B(<A0(U>:?06(8O7(L0P.>.<:=4;(!=D-
D:;;:=4(HI(`G5F0(#=>B06(KL(@QMOS6(`.4I(@*6(*ON@6(8O7()8+(hA04(
%=( -P0?:3?( ED=G4<( :;( -<:PG/.<056( 8O7( )@+( Z//G;<>.<:H0( !.;0;6(
@X7(#?!G//=GFA(HI(E04://0(.45(!=I6(@(UA:/I(8NQ6(@X7(\.>>0<<=(HI(
-.4<.(#.>:.6(8S(UA:/I(8XX6(@X7()C+(L0BG;./(=B("40(U.><](<=(K=(
Ahead with an Agreed Appraisal, 31.
ARTICLE 1470 .................................................................................. 31
!"##$%&'()*+($BB0?<(=B(K>=;;(Z4.50iG.?](=B(U>:?06(@*7()8+(Z4(
!.;0(!=4<>.?<(h.;(L0.//](.(2=4.<:=46(@8I
ARTICLE 1471 .................................................................................. 32
!"##$%&'( )*+( -:DG/.<05( U>:?06( @87( )8+( Y:?<:<:=G;( -./06( @@7(
!.;<://=(HI(!.;<://=6(RV*N8@N6(`.4I(886(*ONX6(@@7(Z5.(!I(R.J.F./.(

viii
 HI(%:?=/.;.(&I(-.4<:.F=6(ED.45.((&I(-.4<:.F=(_(!E6(KL(*@8@XQ6(
Dec. 4, 2001, 33.
ARTICLE 1472 .................................................................................. 33
!"##$%&'()*+(!0><.:4<](=B(U>:?0(=B(-0?G>:<:0;6(@C7()8+(ZB(-<=?e(
#.>e0<(U>:?0(!.44=<(\0(E;?0><.:4056(@CI
ARTICLE 1473 .................................................................................. 34
!"##$%&'()*+(U>:?0(!.44=<(\0(R0B<(<=("40(U.><]1;(2:;?>0<:=46(
@C7()8+(U>=J/0D6(@CI
ARTICLE 1474 .................................................................................. 35
!"##$%&'($BB0?<(:B(<A0(U>:?0(!.44=<(\0(20<0>D:4056(@QI
ARTICLE 1475 .................................................................................. 35
!"##$%&'( )*+( %.<G>0( =B( !=4<>.?<6( @Q7( U.?:3?( "b]F04( .45(
E?0<]/040( !=I( HI( !04<>./( \.4e6( RV8*NN*6( #.>I( *6( *OSN6( @S7(
U.?:3?( "b]F04( .45( E?0<]/040( !=I( HI( !04<>./( \.4e6( RV8@@O*6(
Y0JI(8M6(*OM*6(@S7("J.4.(HI(!E6(KL(@S8CO6(#.>I(8O6(*ONQ6(@S7(
RG(HI(ZE!6(90:>;(=B(-.4<:.F=(\G;<=;(.45(`=;034.(E/J0><=6(KL(
MX*CO6(`.4I(@X6(*ONO6(@M7()8+(L0iG:>0D04<;(B=>(U0>B0?<:=46(@M7(
E<e:4;6( T>=//( .45( !=I6( Z4?I( HI( \I( !G.( 9:.4( &0e6( RVONM*6( `.4I(
@*6( *OQN6( @N7( L=iG0( HI( R.PGg6( RV@8N**6( #.>I( @*6( *ONX6( @N7(
L0PGJ/:?( HI( !=G><( =B( EPP0./;6( RVQ8MMC6( %=HI( 8O6( *ONC6( @O7( )@+(
\0B=>0(U0>B0?<:=46(@O7(L=D.4(HI(K>:D./<6(S(UA:/I(OS6(@O7()C+(E?-
?0P<05( \:/.<0>./( U>=D:;0( <=( \G]( .45( -0//6( @O7( )Q+( Y=>D./:<:0;(
B=>( U0>B0?<:=46( CX7( !:>:/=( U.>050;( HI( `=;0( RI( $;P:4=6( RV8@@Q*6(
#.>I(*@6(*OSN6(CX7()S+(-=D0(U>=J/0D;6(C*7()M+(U0>B0?<:=4(:4(<A0(
!.;0(=B(E5H0><:;0D04<;6(CC7()N+(&>.4;B0>(=B("c40>;A:P6(CC7()O+(
&A0(-./0;(&.b6(CQ7()*X+($BB0?<(=B(U0>B0?<:=46(CS7(\G?<=46(0<(./I(
HI(K.J.>6(0<(./I6(RV@S@QO6(`.4I(@*6(*OMC6(CSI
ARTICLE 1476 ................................................................................ ( CM
!"##$%&'()*+(hA04(-./0(J](EG?<:=4(:;(U0>B0?<056(CM7()8+(\0-
B=>0(<A0(Y.//(=B(<A0(9.DD0>6(CM7()@+(hA04(-0//0>(!.4(\:56(CN7(
)C+(hA04(-0//0>(#.]($DP/=]("<A0>;(<=(\:5(B=>(9:D6(CN7([0.g:0(
HI( h://:.D;6( 0<( ./I6( *8( RI( $5I( *XN*6( CO7( )Q+( L:FA<( =B( "c40>( <=(
Y:b(!=45:<:=4;(B=>(<A0(-./0(J](EG?<:=46(CO7(R0=iG:4?=(HI(U=;<./(
-.H:4F;( \.4e6( CM( UA:/I( MM86( CO7( )S+( LG/0( :4( !.;0( =B( .( U>:H.<0(
-./06(QX7(!YZ(=B(L:g./(.45($/04.("4F($;?G<:4(HI(!E(.45(Y0/:b(
Ong, Jul. 25, 1981, 50.
ARTICLE 1477 .................................................................................. 50
!"##$%&'()*+(hA04("c40>;A:P(:;(&>.4;B0>>056(QX7()8+(T:45;(
=B(20/:H0>]6(Q*7(!I%I(9=5F0;6(0<(./I(HI(`=;0(#.4G0/(R0g.D.6(0<(
al., L-20630, Aug. 31, 1965, 51.
ARTICLE 1478 .................................................................................. 51
!"##$%&'( hA04( "c40>;A:P( :;( %=<( &>.4;B0>>05( 20;P:<0(
20/:H0>]6(Q87(-G4(\>=<A0>1;(EPP/:.4?0;(HI(U0>0g6(RV*MQ8M6(EP>I(
30, 1963, 52.

ix
ARTICLE 1479 .................................................................................. 53
!"##$%&'()*+(2:;<:4?<:=4(\0<c004(<A0(Y:>;<()#G<G./(U>=D:;0+(
.45(<A0(-0?=45(U.>.F>.PA;()E??0P<05(d4:/.<0>./(U>=D:;0+6(Q@7(
E<e:4;6(T>=//(_(!=I6(Z4?I(HI(\I(!G.(9:.4(&0e6(RVONM*6(`.4I(@*6(
*OQN()./;=(?:<05(G450>(E><I(*CMS+6(QQ7()8+(#0.4:4F(=B(,U=/:?:<.-
?:=416(QM7()@+(\:/.<0>./(U>=D:;06(QM7(\=>>=D0=(HI(Y>.4?=6(Q(UA:/(
CO6( QM7( U./.]6( Z4?I( HI( !/.H06( KL( QSXMS6( -0PI( 8*6( *ON@6( QN7( )C+(
d4:/.<0>./(U>=D:;06(QN7(\.>6(QO7(Y:/0D=4(9I(#045=g.6(0<(./I(HI(
EiG:/:4.( !=DP/06( RV*O@**6( "?<I( 8O6( *OSQ6( SX7( )Q+( !=4<>.?<( <=(
-$RR(:;(%"&((.4(EJ;=/G<0(-./06(SX7(L=iG0(HI(R.PGg6(RV@8N**6(
#.>I( @*6( *ONX6( S*7( U./.]6( Z4?I( HI( !/.H06( KL( QSXMS6( -0PI( 8*6(
*ON@6( S*7( -P;I( R=>04g=( HI( R.F.45.=46( !0?:/:.( &I( R.F.45.=4(
_("H0>;0.;(EF>:?G/<G>./(20H0/=PD04<(!=>PI(HI(!E6(0<(./I6(KL(
*X8Q8SV@*6(#.](8*6(*OON6(S*I
ARTICLE 1480 .................................................................................. 62
!"##$%&'( )*+( hA=( \0.>;( <A0( L:;e( =B( R=;;j6( S87( L=D.4( HI(
K>:D./<6(S(UA:/I(OS6(S87(-=4F(Y=(_(!=I(HI(">:.6(@@(UA:/I(@6(S@7(
)8+($b.DP/0;6(SS7()@+(#0.4:4F(=B(kYG4F:J/0;l6(SMI
ARTICLE 1481 .................................................................................. 68
!"##$%&'()*+(2034:<:=4;(=B(-./0(\](20;?>:P<:=4(=>(\](-.D-
P/06(SN7()8+($BB0?<(=B(#0>0($bA:J:<:=4(=B(-.DP/06(SO7()@+(U>=J/0D6(
SO7( )C+( !.;0;6( SO7( U.?:3?( !=DI( !=I( HI( $>D:<.( #.>e0<( _( !=/5(
-<=>0;6(QS(UA:/I(S*M6(SO7(!A=(!A:<(HI(9.4;=46("><A(_(-<0H04;=46(
0<(./I6(RVNC@O6(#.](@X6(*OQN6(MXI
ARTICLE 1482 .................................................................................. ( MX
!"##$%&'()*+(,$.>40;<(#=40]1(2034056(MX7()8+(-:F4:3?.4?0(
=B($.>40;<(#=40]6(MX7()@+($b.DP/06(MX7(-.4(#:FG0/(U>=P0><:0;(
UA:/;I6(Z4?I(HI(-P;I((E/B>05=(9G.4F(_(K>.?0(9G.4F6(KL(*@M8OX6(
`G/I(@*6(8XXX6(M*7([:?04<0(_(#:?A.0/(R:D(HI(!E(_(R:J0><](9I(
RG4.6(KL(**N@CM6("?<I(8C6(*OOS6(M87()C+(hA04(E>>.;(#G;<(J0(
L0<G>4056(M8I
ARTICLE 1483 .................................................................................. ( M8
!"##$%&'( )*+( -<.<G<0( =B( Y>.G5;6( M@7( )8+( ZB( -./0( Z;( #.50(
&A>G( .4( EF04<6( M@7( )@+( $BB0?<( :B( %=<.>]( UGJ/:?( :;( %=<( EG<A=>-
:g056(M@I
ARTICLE 1484 ................................................................................ ( M@
!"##$%&'( )*+( L0iG:;:<0( \0B=>0( E><I( *CNC( #.]( \0( EPP/:056(
MC7()8+(UG>P=;0(=B(<A0(LG/0;(Y=>(-./0(=B(U0>;=4./(U>=P0><](=4(
<A0( Z4;<.//D04<( U/.46( MC7( )@+( E/<0>4.<:H0( L0D05:0;6( MQ7( )C+(
$b.DP/0;( =B( <A0( L0D05:0;6( MQ7( W.]?=( HI( RG40<.( #=<=>( !=I6(
RV@XQN@6("?<I(8@6(*ON86(MS7(L:5.5(HI(Y:/:P:4.;(Z4H0;<D04<(.45(
Y:4.4?0(!=>P=>.<:=46(KL(@ONXS6(`.4I(8N6(*ON@6(MS7(U.;?G./(HI(
d4:H0>;./(#=<=>;(!=>P=>.<:=46(RV8MNS86(%=HI(8X6(*OMC6(MM7(\=>-
J=4(ZZ(HI(-0>H:?0c:50(-P0?:./:;<;6(Z4?I6(M8(-!E2(***()*OOS+(MN7(
)Q+(!.4?0//.<:=4(L0iG:>0;(#G<G./(L0;<:<G<:=46(MN7()S+(Z4;<.4?0;(

x
 hA04( E><I( *CNC( !.44=<( \0( EPP/:056( MO7( )M+( !=DP=G45:4F( =B(
.( !>:D:4./( U>=;0?G<:=46( NX7( d4:<05( K040>./( Z45G;<>:0;6( Z4?I(
HI( `=;0( U./0>( .45( `=;0( 50/.( L.D.6( RV@X8XQ6( #.>I( *Q6( *ON86(
NX7( )N+( Y=>0?/=;G>0( .45( E?<G./( -./0( =B( #=><F.F0( !A.<<0/6( N*7(
-P;I( L=DG/=( 50( /.( !>Gg( _( 20/:.( 50( /.( !>Gg6( 0<( ./I( HI( E-ZE%(
!=4;GD0>( =B( Z45G;<>:./( Y:4.4?0( !=>PI( _( <A0( !E6( KL( OCN8N6(
Sep. 20, 1992, 81.
ARTICLE 1485 .................................................................................. 82
!"##$%&'()*+(L0.;=4(B=>(LG/0(=4(R0.;0(=B(U0>;=4./(U>=P0><](
h:<A("P<:=4(<=(\G]6(N87()8+(#0.4:4F(=B(<A0(!/.G;0(kcA04(<A0(
lessor has deprived the lessee of the possession or enjoyment of
<A0(<A:4Fl6(N87()@+(hA04(kR0.;0l(!=4;<>G05(.;(k-./0l6(N8I
ARTICLE 1486 .................................................................................. 82
!"##$%&'()*+(%=4VL0<G>4(=B(Z4;<.//D04<;(U.:56(N87()8+($b-
.DP/06(N@7(-ER$("Y(L$ER(UL"U$L&f(Z%(Z%-&ERR#$%&6(
L$Ud\RZ!( E!&( %"I( SQQ8( )#.?05.( R.c+6( N@7( )@+( ,L.:;=4( 51(
$<>01( =B( <A0( #.?05.( R.c6( NQ7( )C+( !.;06( NS7( 20/<.( #=<=>( -./0;(
!=>PI( HI( %:G( T:D( 2G.4( _( !A.4( YG0( $4F6( KL( S*XC@6( -0PI( 86(
1992, 86.
ARTICLE 1487 .................................................................................. 86
!"##$%&'(hA=(U.];(B=>($bP04;0;(:4($b0?G<:=4(.45(L0F:;-
tration, 86.
ARTICLE 1488 .................................................................................. ( NM
!"##$%&'()*+(%.<G>0(=B($bP>=P>:.<:=46(NM7()8+(hA04(&>.4;-
.?<:=4(Z;("40(=B(-./06(NM7()@+(,$D:404<(2=D.:41(2:;<:4FG:;A05(
Y>=D(,$bP>=P>:.<:=416(NM7()C+($;;04<:./(L0iG:;:<0;(B=>($bP>=P>:.-
<:=46(NM7()Q+(,`G;<(!=DP04;.<:=41(2034056(NN7( U05>=( E>?0( .45(
!.>D04(\.>>:?.(50(E>?0(HI(K04.<=6(RVCXQNM6(Y0JI(8M6(*OMS6(NN7(
U>=H:4?0(=B(!.D.>:40;(-G>(HI(!E6(C*(-!LE(@NN()*OO@+6(NOI

CHAPTER 2 CAPACITY TO BUY OR SELL ................................ 90

ARTICLE 1489 .................................................................................. 90
!"##$%&'()*+(Z4?.P.?:<](<=(\G](#.](\0(EJ;=/G<0(=>(L0/.<:H06(
OX7()8+(UG>?A.;0(\](#:4=>;6(OX7(Y0/:P0(HI(E/5=46(KL(SX*MC6(Y0JI(
*S6( *ON@6( OX7( )@+( 9G;J.45;6( O*7( \.>6( O*7( !.;<://=( HI( !.;<://=6(
RV*N8@N6( `.4I( 886( *ONX6( O87( K=5:40g( HI( Y=4F6( *8X( -!LE( 88@(
(1983), 92.
ARTICLE 1490 .................................................................................. 92
!"##$%&'( )*+( L0.;=4( hA]( K040>.//]( .( 9G;J.45( .45( h:B0(
!.44=<(-0//(<=($.?A("<A0>6(O87()8+($BB0?<(=B(-./06(O87()@+(U>=J-
lems, 93.
ARTICLE 1491 .................................................................................. 95
!"##$%&'( )*+( U0>;=4;( L0/.<:H0/]( Z4?.P.?:<.<05( <=( \G]6( OQ7(
)8+(L0.;=4(B=>(<A0(R.c6(OQ7()@+(UG>?A.;0(&A>G(E4=<A0>6(OS7()C+(

xi
 UG>?A.;0(\](EF04<(B=>(9:D;0/B6(OS7()Q+(UG>?A.;0(\](E<<=>40]6(
OM7( Y/=>04<:4=( \I( 50/( L=;.>:=( HI( $GF04:=( #://.5=6( E5DI( !.;0(
M8C6(`.4I(@*6(*OSO6(OM7(Y.J://=(HI(ZE!6(KL(SNN@N6(#.>I(**6(*OO*6(
ON7([./04?:.(HI(!.J.4<:4F6(E5DI(!.;0(*@O*6(EP>I(8S6(*OO*6(*X*7(
)S+(#0.4:4F(=B(kE4](=<A0>;(;P0?:.//](5:;iG./:305(J](/.cl6(*X*7(
)M+(-<.<G;(=B(<A0(-./06(*X87(L0PGJ/:?(HI(!E6(RVQOCCM6(20?I(8M6(
*ON86(*X87()N+(-=D0(!.;0;6(*X@7(#.A.>/:e.(UGJ/:;A:4F(!=>PI(HI(
&.F/06(KL(SQQOC6(`G/I(O6(*ONS6(*X@7(Y=>4:/5.6(0<(./I(HI(\>.4?A(
*SC6(L&!(=B(U.;:F6(0<(./I6(KL(M8@XS6(`.4I(8C6(*ONO6(*X@I
ARTICLE 1492 .................................................................................. 103
!"##$%&'( )*+( EPP/:?.J:/:<]( =B( L0/.<:H0( Z4?.P.?:<]( <=( R0F./(
L050DP<:=46(!=DP>=D:;0;6(.45(L04G4?:.<:=46(*X@7()8+(!>=;;V
L0B0>04?06(*X@I
CHAPTER 3 EFFECTS OF THE CONTRACT WHEN
THE THING SOLD HAS BEEN LOST .................. 104
ARTICLE 1493 .................................................................................. 104
!"##$%&'()*+(R=;;(=B("J^0?<(\0B=>0(-./06(*XC7()8+(!=DP/0<0(
Loss Distinguished from Partial Loss, 104.
ARTICLE 1494 .................................................................................. 105

!"##$%&'(R=;;(=B(-P0?:3?(K==5;6(*XQI
CHAPTER 4 OBLIGATIONS OF THE VENDOR ......................... 106

Section 1 GENERAL PROVISIONS .......................................... 106

ARTICLES 1495 ................................................................................ 106
!"##$%&'( )*+( "J/:F.<:=4;( =B( [045=>6( *XS7( )8+( !.;06( *XS7(
Hermogena G. Engreso with Sps. Jose Engreso v. Nestoria de
/.(!>Gg(_(90>D:4:=(50(/.(!>Gg6(KL(*CNM8M6(EP>I(O6(8XX@6(*XS7(
)@+(Y.:/G>0(<=(20/:H0>(=4(&:D06(*XM7()C+($BB0?<(=B(%=4V20/:H0>]6(
*XM7()Q+(2G<](<=(20/:H0>(.<($b0?G<:=4(-./0;6(*XMI
ARTICLE 1496 .................................................................................. 108
!"##$%&'()*+("c40>;A:P(:;(&>.4;B0>>05(K040>.//]("4/](J](
20/:H0>]6( *XN7( \.>6( *XN7( )8+( $BB0?<( =B( 20/:H0>]( <=( \G]0>( )hA=(
d;05(E4=<A0>1;(#=40]+6(*XNI
Section 2 DELIVERY OF THE THING SOLD .............................. 109
ARTICLE 1497 .................................................................................. 109
!"##$%&'()*+(L0./(=>(E?<G./(20/:H0>]6(*XO7(-D:<A6(\0//(_(!=I(
HI(K:D040g6(RV*M*SM6(`G4I(8O6(*OS@6(*XO7()8+(hA04("c40>;A:P(
:;( %=<( &>.4;B0>>05( 20;P:<0( 20/:H0>]6( **X7( #.;:?/.<6( 0<( ./I( HI(
!04<04=6(RVNC8X6(#.](@*6(*OQS6(**X7()@+(#0.4:4F(=B(&>.5:<:=46(
***7(E/J0><(HI(d4:H0>;:<](UGJ/:;A:4F(!=I6(RVO@XX6(-0PI(*M6(*OQN6(
***7(L=iG0(HI(R.PGg6(RV@8N**6(#.>I(@*6(*ONX6(**87()C+(T:45;(=B(
20/:H0>]( =>( &>.5:<:=46( **87( )Q+( !.;06( **@7( [:?<=>:.;( HI( R0G04-
J0>F0>(.45(!E6(KL(@**NO6(#.>I(@*6(*ONM6(**@I

xii
ARTICLE 1498 .................................................................................. 114
!"##$%&'()*+(&c=(T:45;(=B(!=4;<>G?<:H0(20/:H0>]()&A>G(R0-
F./(Y=>D./:<:0;(.45(&A>G(&>.5:<:=(-:DJ=/:?.+6(**C7(U=c0>(!=D-
D0>?:./(.45(Z45G;<>:./(!=>PI(HI(!E6(-P;I(L0]4./5=(_(E4F0/:<=(LI(
aG:.DJ.=6(.45(U%\6(KL(**OMCQ6(`G4I(8X6(*OOM6(NC(-!E2(SM6(
**C7()8+(LG/0;(=4(!=4;<>G?<:H0(20/:H0>]6(**Q7(E55:;=4(HI(Y0/:b6(
@N(UA:/I(CXC6(**Q7(L=iG0(HI(R.PGg6(RV@8N**6(#.>I(@*6(*ONX6(**S7(
[5.I(50(-.>D:04<=(HI(R0;.?.6(RV*Q@NQ6(`G4I(@X6(*OSX6(**S7(E;G4-
?:=46(0<(./I(HI(9=4I(U/.46(KL(Q8@QO6(Y0JI(8C6(*ON*6(**M7(%=>e:;(
2:;<>:JG<=>;6(Z4?I(HI(!E6(KL(O*X8O6(Y0JI(M6(*OOX6(**N7()@+($BB0?<(
=B(%=4VU.]D04<(=B(U>:?06(**N7(UG.<G(HI(#045=g.(.45(2.H:56(SC(
UA:/I(CQM6(**N7()C+(20/:H0>](&A>G($b0?G<:=4(=B(.(aG05.46(**O7(
)Q+(\.>6(**O7()S+(\.>6(**O7()M+(!.;06(*8X7(W04.:5.(#I(-.4<=;(HI(
!./:b<=(-.4<=;6(0<(./I6(KL(*@@NOQ6("?<I(86(8XX*6(*8XI
ARTICLE 1499 .................................................................................. 120
!"##$%&'( &>.5:<:=( R=4F.( #.4G( .45( &>.5:<:=( \>0H:( #.4G6(
120.
ARTICLE 1500 .................................................................................. 121
!"##$%&'(&>.5:<:=(!=4;<:<G<GD(U=;;0;;=>:GD6(*8*I
ARTICLE 1501 .................................................................................. 121
!"##$%&'( 20/:H0>]( =B( Z4?=>P=>0./( U>=P0><]6( *8*7( %=><A(
%0F>=;(-GF.>(!=I(HI(!=I(K040>./(50(&.J.?=;6(RVO8MM6(#.>I(8O6(
*OQM6(*88I
ARTICLE 1502 .................................................................................. 123
!"##$%&'( )*+( &>.4;.?<:=4( ,"4( -./0( =>( L0<G>416( *8@7( )8+(
&>.4;.?<:=4(,"4(EPP>=H./(=>("4(&>:./(=>(-.<:;B.?<:=416(*8C7()@+(
U>=J/0D;( =4( ,"4( -./0( =>( L0<G>416( *8C7( )C+( \.>6( *8Q7( )Q+( -=D0(
LG/0;( =4( -./0( ,"4( EPP>=H./( =>( &>:./( =>( -.<:;B.?<:=416( *8S7( )S+(
!.;06( *8M7( ZDP0>:./( &0b<:/0( #.4GB.?<G>:4F6( !=I( =B( <A0( UA:/;I6(
Z4?I(HI(RU`($4<0>P>:;0;6(Z4?I6(KL(SS*CX6(`.4I(8*6(*OO@6(*8MI
ARTICLE 1503 .................................................................................. ( *8M
!"##$%&'( )*+( L0;0>H.<:=4( =B( "c40>;A:P( 20;P:<0( 20/:H0>]6(
*8N7(!A>];/0>(UA:/I(!=>PI(HI(!E6(RVQQSNC6(20?I(*O6(*ONC6(*8N7()8+(
Z4;<.4?0;(hA04(-0//0>(Z;(-<://("c40>(20;P:<0(20/:H0>]6(*8OI
ARTICLE 1504 .................................................................................. 129
!"##$%&'()*+(L:;e(=B(R=;;6(*@X7()8+(-=D0(U>=J/0D;6(*@XI
ARTICLE 1505 .................................................................................. 131
!"##$%&'()*+(K040>.//]6(\G]0>(E?iG:>0;(#0>0/](<A0(-0//0>1;(
L:FA<;6(*@*7()8+($b?0P<:=4;6(*@87()@+(Z//G;<>.<:H0(aG0;<:=4;6(*@87(
)C+(-=D0(L0?=>5:4F(E?<;6(*@@7()Q+(\.>6(*@@I
ARTICLE 1506 .................................................................................. 134
!"##$%&'()*+($BB0?<(:B(-0//0>(9.;("4/](.([=:5.J/0(&:</06(*@C7(
)8+(L0.;=4;(B=>(<A0(R.c6(*@C7()@+(UG>?A.;0(B>=D(.(&A:0B6(*@CI

xiii
ARTICLE 1507 .................................................................................. 135
!"##$%&'( )*+( hA.<( ,2=?GD04<( =B( &:</01( Z4?/G50;6( *@Q7( )8+(
%0F=<:.J/0(2=?GD04<(=B(&:</06(*@S7()@+($BB0?<(=B(&]P=F>.PA:?./(
or Grammatical Error, 136.
ARTICLE 1508 .................................................................................. 136
!"##$%&'()*+(9=c(%0F=<:.J/0(2=?GD04<(=B(&:</0(:;(%0F=<:-
.<056(*@M7()8+(hA04(#0>0(20/:H0>](:;(-GB3?:04<6(*@MI
ARTICLE 1509 .................................................................................. ( *@M
!"##$%&'()*+(%0F=<:.<:=4(\](Z45=>;0D04<(.45(20/:H0>]6(*@N7(
)8+( $BB0?<( =B( d45.<05( Z45=>;0D04<6( *@N7( )@+( $BB0?<( =B( Z45=>;0-
ment and Delivery, 138.
ARTICLE 1510 .................................................................................. 139
!"##$%&'( $BB0?<( =B( U/.?:4F( <A0( h=>5( ,%=4V%0F=<:.J/016(
139.
ARTICLE 1511 .................................................................................. 139
!"##$%&'()*+($BB0?<(=B(20/:H0>](hA04(2=?GD04<(!.44=<(J0(
%0F=<:.<05(J](#0>0(20/:H0>]6(*@O7()8+($BB0?<(=B(%0F=<:.<:=4(.45(
Indorsement of Non-Negotiable Instrument, 140.
ARTICLE 1512 .................................................................................. 140
!"##$%&'( )*+( hA=( #.]( %0F=<:.<0( %0F=<:.J/0( 2=?GD04<( =B(
&:</06(*CX7()8+(hA=(\0.>;(R=;;(:4(!.;0(=B(d4.G<A=>:g05(%0F=-
tiation, 141.
ARTICLE 1513 .................................................................................. 141
!"##$%&'( )*+( L:FA<;( =B( U0>;=4( <=( hA=D( %0F=<:.J/0( 2=?G-
D04<(Z;(%0F=<:.<056(*C*7()8+(UG>P=;0(=B(<A0(E><:?/06(*C8I
ARTICLE 1514 .................................................................................. 142
!"##$%&'()*+(L:FA<;(=B(#0>0(&>.4;B0>006(*C87()8+(hA=(!.4(
20B0.<(L:FA<;(=B(&>.4;B0>006(*C8I
ARTICLE 1515 .................................................................................. 143
!"##$%&'( LG/0( :B( Z45=>;0D04<( Z;( %00505( B=>( %0F=<:.<:=46(
143.
ARTICLE 1516 .................................................................................. 143
!"##$%&'()*+(h.>>.4<:0;(:4(%0F=<:.<:=4(=>(&>.4;B0>6(*CC7()8+(
$BB0?<(=B(Z45=>;001;(T4=c/05F0(=B(Y=>F05(Z45=>;0D04<6(*CCI
ARTICLE 1517 .................................................................................. 144
!"##$%&'()*+(%=4V/:.J:/:<](=B(Z45=>;0>(B=>(Y.:/G>0(=B(\.:/00(
<=(!=DP/]6(*CC7()8+(L0.;=46(*CCI
ARTICLE 1518 .................................................................................. 145
!"##$%&'( $BB0?<( :B( "c40>( =B( 2=?GD04<( h.;( 20P>:H05( =B(
It, 145.

xiv
ARTICLE 1519 .................................................................................. 145
!"##$%&'(K040>.//](%=(E<<.?AD04<(=>(-G>>0450>6(*CQI
ARTICLE 1520 .................................................................................. 146
!"##$%&'(L:FA<(=B(!>05:<=>6(*CSI
ARTICLE 1521 ................................................................................ 146
!"##$%&'()*+(-P0?:3?.<:=4;(B=>(<A0(20/:H0>]6(*CM7()8+(U/.?0(
=B(20/:H0>]6(*CM7()@+(&:D0(=B(20/:H0>]6(*CN7()C+(#.440>(=B(20/:H-
0>](hA04(K==5;(E>0(:4(<A0(9.45;(=B(.(&A:>5(U0>;=46(*CN7()Q+(
$bP04;0;(&=(\0(-A=G/50>05(J](-0//0>6(*CO7()S+(hA04(20D.45(
=>(&0450>(=B(20/:H0>](#G;<(\0(#.506(*COI
ARTICLE 1522 ................................................................................ 149
!"##$%&'( )*+( LG/0( hA04( <A0( aG.4<:<]( Z;( R$--( <A.4( <A.<(
EF>005( dP=46( *QX7( !A>];/0>( UA:/I( !=>PI( HI( !=G><( =B( EPP0./;6(
RVQQSNC6( 20?I( *O6( *ONC6( *QX7( )8+( LG/0;( cA04( <A0( aG.4<:<]( Z;(
#"L$(<A.4(<A0(EF>00D04<6(*Q*7()@+(ZDP/:05(E??0P<.4?06(*Q87(
)C+(LG/0(cA04(aG./:<](:;(2:BB0>04<6(*Q87(E5.D(T>=?e/0;(-=4;(
!=I(HI(L=?eB=>5(".e(R0.<A0>(!=I6(8CX(#:?AI(Q8C6(*Q8I
ARTICLE 1523 .................................................................................. 152
!"##$%&'()*+(hA04(20/:H0>](<=(!.>>:0>(:;(20/:H0>](<=(\G]0>6(
*Q@7()8+(T:45;(=B(20/:H0>](<=(!.>>:0>6(*Q@7()@+(U>=J/0D6(*QCI
ARTICLE 1524 .................................................................................. 155
!"##$%&'()*+(hA04([045=>(:;(%=<(\=G45(&=(20/:H0>6(*QQ7()8+(
$BB0?<(:B(U0>:=5(:;(Y:b05(B=>(U.]D04<6(*QQ7()@+(\.>6(*QQI
ARTICLE 1525 .................................................................................. 156
!"##$%&'(hA04(-0//0>(:;(200D05(.4(kd4P.:5(-0//0>6l(*QSI
ARTICLE 1526 .................................................................................. 156
!"##$%&'( )*+( L:FA<;( =B( .4( d4P.:5( -0//0>6( *QM7( )8+( U=;;0;-
;=>](R:046(*QMI
ARTICLE 1527 .................................................................................. 158
!"##$%&'( )*+( hA04( -0//0>( 9.;( U=;;0;;=>]( R:046( *QN7( )8+(
Problem, 158.
ARTICLE 1528 .................................................................................. 159
!"##$%&'()*+(U=;;0;;=>](R:04(EB<0>(U.><:./(20/:H0>]6(*QOI
ARTICLE 1529 .................................................................................. 159
!"##$%&'()*+(hA04(U=;;0;;=>](R:04(:;(R=;<6(*SX7()8+(U>=J-
lems, 160.
ARTICLE 1530 .................................................................................. 161
!"##$%&'()*+(L:FA<(=B(-<=PP.F0(:4(&>.4;:<G6(*S*7()8+(#0.4-
:4F(=B(Z4;=/H04?](:4(<A0(E><:?/06(*S87()@+(hA=(#.]($b0>?:;0(<A0(
L:FA<(=B(-<=PP.F0(:4(&>.4;:<G6(*S8I

xv
ARTICLE 1531 .................................................................................. 162
!"##$%&'( )*+( hA04( K==5;( .>0( :4( &>.4;:<( =>( %=<6( *S@7( )8+(
$BB0?<(=B(L0BG;./(<=(L0?0:H06(*S@I
ARTICLE 1532 .................................................................................. 163
!"##$%&'()*+(9=c(<A0(L:FA<(=B(-<=PP.F0(:4(&>.4;:<G(#.](\0(
$b0>?:;056(*SC7()8+(&=(cA=D(%=<:?0(:;(K:H046(*SC7()@+($BB0?<;(=B(
<A0($b0>?:;0(=B(<A0(L:FA<6(*SCI
ARTICLE 1533 .................................................................................. 165
!"##$%&'( )*+( L:FA<( =B( L0;./06( *SQ7( )8+( L:FA<6( %=<( 2G<]6( <=(
L0;0//6( *SS7( )@+( #0.4:4F( =B( U0>:;A.J/06( *SS7( )C+( 203?:04?]( =>(
Excess in the Price, 166.
ARTICLE 1534 .................................................................................. 166
!"##$%&'()*+(L:FA<(<=(L0;?:45(<A0(&>.4;B0>(=B(&:</06(*SM7()8+(
$BB0?<(=B(L0P/0H:4(-G:<6(*SMI
ARTICLE 1535 .................................................................................. ( *SM
!"##$%&'( $BB0?<( :B( \G]0>( 9.;( E/>0.5]( -=/5( <A0( K==5;6(
168.
ARTICLE 1536 .................................................................................. 168
!"##$%&'()*+(hA04(-0//0>(:;(%=<(\=G45(<=(20/:H0>(\0?.G;0(
\G]0>( 9.;( R=;<( <A0( \0403<( =B( <A0( &0>D6( *SN7( )8+( $b.DP/06(
169.
ARTICLE 1537 .................................................................................. 169
!"##$%&'( )*+( E??0;;:=4;( .45( E;;0;;=>:0;6( *SO7( )8+( 2G<]( <=(
U>0;0>H06(*SO7()@+(L:FA<(<=(<A0(Y>G:<;6(*SOI
ARTICLE 1538 .................................................................................. ( *MX
!"##$%&'()*+($BB0?<(=B(R=;;6(20<0>:=>.<:=4(=>(ZDP>=H0D04<(
\0B=>0(20/:H0>]6(*MX7()8+(E><:?/0(**NO6(*MXI
ARTICLE 1539 .................................................................................. ( *M*
!"##$%&'()*+(-./0(=B(L0./($;<.<0(\](<A0(d4:<6(*M*7()8+(d4:<(
U>:?0(!=4<>.?<6(*M87([:>F:/:=(2:=4:;:=(HI(9=4I([:?04<0(U.<0>4=6(
RVCOSQC6(Y0JI(8S6(*ON*6(*M8I
ARTICLE 1540 .................................................................................. ( *M8
!"##$%&'( LG/0( hA04( E?<G.//]( <A0( E>0.( =>( %GDJ0>( :;(
K>0.<0>6(*M@I
ARTICLE 1541 .................................................................................. ( *M@
!"##$%&'(&A0(LG/0(:4(`G5:?:./(-./0;6(*M@I(
ARTICLE 1542 .................................................................................. ( *M@
!"##$%&'()*+(-./0(B=>(.(RGDP(-GD()E(!G0>P=(!:0><=+6(*MC7(
)8+($b.DP/06(*MC7()@+(E4=<A0>($b.DP/06(*MC7()C+(20/:H0>](=B(E//(

xvi
 <A0(R.45(Z4?/G505(:4(<A0(\=G45.>:0;6(*MQ7()Q+($BB0?<(=B(K>=;;(
#:;<.e06(*MQ7()S+($BB0?<(:B(\G]0>(&==e(<A0(L:;e(.;(<=(aG.4<:<]6(
*MQ7()M+(#0.4:4F(=B(k#=>0(=>(R0;;l6(*MSI
ARTICLE 1543 .................................................................................. ( *MS
!"##$%&'(U>0;?>:P<:H0(U0>:=56(*MSI
ARTICLE 1544 .................................................................................. ( *MS
!"##$%&'( )*+( LG/0;( =B( U>0B0>04?0( :4( !.;0( =B( 2=GJ/0( -./06(
*MS7(L0D./.<0(HI(&:J06(KL(QOQ*C6(Y0JI(8Q6(*ONN6(*MO7(!.>.D6(
`>I(HI(R.G>0<.6(RV8NMCX6(Y0JI(8C6(*ON*6(*N*7()8+(Z//G;<>.<:=4(=B(
LG/0;(.;(<=(U0>;=4./(U>=P0><]6(*N*7()@+(Z//G;<>.<:=4(=B(LG/0;(.;(
<=( L0./( U>=P0><]6( *N*7( )C+( !.;0;6( *N87( 2\U( HI( #.4F.c.46( 0<(
./I6(RV*NNS*6(`G4I(@X6(*OSC6(*N87(E;<=>F.(HI(!=G><(=B(EPP0./;6(
RVQNQ@X6( 20?I( 8S6( *ONC6( *N87( U=( -G4( &G4( HI( U>:?06( QC( UA:/I(
*O86( *N87( [:?<=>:.4=( 90>4.450g( HI( #.?.>:.( T.<:FJ.e( [:G5.(
50( -./.;6( SO( UA:/I( MCC6( *N@7( )Q+( aG0>]6( *NQ7( #.>:.( \.G<:;<.(
[5.I(50(L0]0;((HI(#.><:4(50(R0=46(RV88@@*6(`G4I(S6(*OSM6(*NQ7(
!.;:?.6(0<(./I(HI([://.;0?.6(0<(./I6(RVOQOX6(EP>I(@X6(*OQM6(*NS7()S+(
U>=J/0D6(*NM7()M+(!.;0;6(*NM7(#.4G0/(\G.;=46(0<(./I(HI(#.>:.4=(
U.4G].;6( RV**C*Q6( #.]( 8Q6( *OQO6( *NM7( -.4?A0g( HI( L.D=;6( CX(
UA:/I(S*C6(*NN7(EH:/0;(HI(E>?0F.6(CC(UA:/I(O8C6(*NO7(-=>:.4=6(0<(
./I( HI( 90:>;( =B( #.F./:6( RV*Q*@@6( `G/I( @*6( *OS@6( *NO7( \.G<:;<.(
HI( -:=;=46( @O( UA:/I( S*Q6( *OX7( !>Gg.5=( HI( \G;<=;( .45( $;?=J.>6(
@C( UA:/I( *M6( *OX7( !.>P:=( HI( $b0H0.6( )!IEI+( @N( "IKI( *@QS6( *OX7(
2:=;5.5=(-<.I(L=D.4.(HI(!.>/=;(ZDP0>:=6(0<(./I6(RV*M8NX6(20?I(
8O6(*OSQ6(*O*7(2.FGP.4(&>.5:4F(!=DP.4](HI(LG;<:?=(#.?.D6(
RV*NCOM6(#.](@*6(*OSQ6(*O*7(Y0/:b(50([://.(HI(E4.?/0<=(&>:4:5.56(
0<(./I6(RV8CO*N6(#.>I(8X6(*OSN6(*O@7(&0=5=>=(E/D:>=/(HI(L0F:;<0>(
=B( 2005;( =B( EFG;.46( RV88CNS6( #.>I( 8X6( *OSN6( *OC7( KGgD.4( HI(
!E6(KL(CXO@Q6(20?I(8*6(*ONM6(*OS7(\0>4./0;(HI(ZE!6(KL(M*CO*6(
`G4I(8N6(*ONN6(*OS7(`=D=?(HI(!=G><(=B(EPP0./;6(KL(O8NM*6(EGFI(
86( *OO*6( *OS7( EJ.>iG0g6( 0<( ./I( HI( !E6( 0<( ./I6( KL( OQNC@6( -0PI(
86( *OO86( *OM7( EF>:?G/<G>./( _( 9=D0( $b<04;:=4( 20H0/=PD04<(
K>=GP;(HI(!E(_(R:J>.5=(!.J.G<.46(KL(O8@*X6(-0PI(@6(*OO86(*ON7(
LG34.(\.G<:;<.6(0<(./I(HI(!=G><(=B(EPP0./;6(0<(./I6(KL(*XSXC86(
Y0JI( 8N6( *OOC6( CN( -!E2( S8O6( *OO7( [5.I( 50( E/?.4<.>.( HI( !E6(
SM(-!E2(@CM6(8Q8(-!LE(CQM()*OOS+6(8XX7(L=;:<.(&.46(0<(./I(HI(
!E(_(Y0>4.45=(&.4(T:.<6(KL(*8QNS*6(-0PI(O6(*OON6(8XX7(L0HI(
Y>I( 2.4<0( #.><:40g( HI( !E6( 0<( ./I6( KL( *8@QCM6( #.]( 8*6( 8XX*6(
8X*7(!.;<=>:=(E/H.>:?=(HI(ED0/:<.(RI(-=/.6(KL(*@NOQ@6(`G4I(S6(
8XX86(8X87(RG(HI(-P;I(#.4:P=46(KL(*CMXM86(#.](M6(8XX86(8XC7(
%..c.4(!=DDG4:<](LG>./(\.4e6(Z4?I(HI(!E(_(-P;I(E/B>05=(_(
E44.J0//0(RGD=6(KL(*8NQM@6(`.4I(*@6(8XX86(8XQ7(U>=J/0D6(8XS7(
Another Problem, 206.

Section 3 CONDITIONS AND WARRANTIES .............................. 206

ARTICLE 1545 .................................................................................. 206
!"##$%&'(U>0;04?0(=B(!=45:<:=4;(.45(h.>>.4<:0;6(8XMI

xvii
 ARTICLE 1546 .................................................................................. ( 8XM
!"##$%&'( )*+( hA04( Z;( &A0>0( .( h.>>.4<]j6( 8XM7( )8+( $BB0?<(
=B( 20./0>1;( &./e6( 8XN7( )@+( LG/0( hA04( &A0>0( Z;( %=( 20/:J0>.<0(
Lie, 208.
ARTICLE 1547 .................................................................................. 208
!"##$%&'(ZDP/:05(h.>>.4<:0;(EF.:4;<($H:?<:=4(.45(EF.:4;<(
9:5504(20B0?<6(8XO7(L0PGJ/:?(=B(<A0(UA:/;I(HI(9=4I(dD./:6(KL(
NXSNM6(EP>I(*X6(*ONO6(8XOI
Subsection 1 WARRANTY IN CASE OF EVICTION .................. 209
ARTICLE 1548 .................................................................................. 209
!"##$%&'()*+(h.>>.4<](:4(!.;0(=B($H:?<:=46(8*X7(-0>34=(HI(
!E6(KL(CXNQN6(-0PI(*S6(*ONM6(8*X7()8+(-0//0>1;(Y.G/<6(8**7()@+(L0-
;P=4;:J:/:<](=B(-0//0>6(8**7()C+($;;04<:./($/0D04<;(B=>($H:?<:=46(
8**7()Q+(U/.:4<:BB(:4(-G:<6(8*87()S+(20B045.4<(:4(-G:<6(8*8I
ARTICLE 1549 .................................................................................. 212
!"##$%&'([04500(%005(%=<(EPP0./6(8*8I
ARTICLE 1550 .................................................................................. 212
!"##$%&'( $BB0?<( :B( E5H0>;0( U=;;0;;:=4( \0F.4( \0B=>0( <A0(
Sale, 213.
ARTICLE 1551 .................................................................................. 213
!"##$%&'($BB0?<(=B(%=4VU.]D04<(=B(&.b0;6(8*@I
ARTICLE 1552 .................................................................................. 213
!"##$%&'( $H:?<:=4( :4( !.;0( =B( `G5:?:./( -./0;6( 8*@7( \=J:;( HI(
U>=H:4?:./( -A0>:BB( =B( !.D.>:40;( %=><06( KL( 8ON@N6( #.>I( *N6(
1983, 213.
ARTICLE 1553 .................................................................................. 214
!"##$%&'( $BB0?<( =B( -<:PG/.<:=4( h.:H:4F( R:.J:/:<]( B=>( $H:?-
tion, 214.
ARTICLE 1554 .................................................................................. 214
!"##$%&'()*+(h.:H0>(\](<A0(\G]0>6(8*C7()8+($BB0?<;6(8*QI
ARTICLE 1555 .................................................................................. 215
!"##$%&'()*+(hA.<(-0//0>(#G;<(K:H0(:4(!.;0(=B($H:?<:=46(8*S7(
)8+(LG/0(.;(<=(Z4?=D0(=>(Y>G:<;6(8*S7()@+(!=;<;(=B(-G:<6(8*S7()C+(
2.D.F0;6(8*S7()Q+(aG0>]'(hA](:;(L0;?:;;:=4(%=<(.(L0D05](:4(
!.;0(=B(&"&ER($H:?<:=4j6(8*SI
ARTICLE 1556 .................................................................................. ( 8*M
!"##$%&'( )*+( LG/0;( :4( !.;0( =B( U.><:./( $H:?<:=46( 8*M7( )8+(
L0;?:;;:=46(8*M7()@+(hA04($4B=>?0D04<(=B(<A0(h.>>.4<](Z;(<A0(
U>=P0>(L0D05]6(8*MI

xviii
 ARTICLE 1557 .................................................................................. 218
!"##$%&'(%0?0;;:<](=B(Y:4./(`G5FD04<6(8*NI
ARTICLE 1558 .................................................................................. 218
!"##$%&'()*+(%0?0;;:<](=B(-GDD=4:4F(<A0(-0//0>(:4(<A0(-G:<(
B=>(<A0($H:?<:=4(=B(<A0(\G]0>6(8*N7()8+(L0.;=4(B=>(<A0(-GDD=4-
ing, 219.
ARTICLE 1559 .................................................................................. 219
!"##$%&'()*+(-0//0>(#G;<(\0(#.50(!=V20B045.4<(h:<A(<A0(
\G]0>6(8*O7()8+(LG/0(:4(L0F:;<>.<:=4(U>=?005:4F;6(8*O7()@+(EP-
P/:?.J:/:<](=B(<A0(LG/0;(=B(!=G><6(88XI
ARTICLE 1560 .................................................................................. 220
!"##$%&'()*+(LG/0;(:4(!.;0(=B(%=4VEPP.>04<(-0>H:<G50;6(88X7(
)8+($BB0?<(:B(\G>504(=>($.;0D04<(:;(L0F:;<0>056(88*7()@+($BB0?<(
of Form of the Sale, 221.
Subsection 2 WARRANTY AGAINST HIDDEN DEFECTS
OF OR ENCUMBRANCES UPON THE
THING SOLD ............................................................. 221
ARTICLE 1561 .................................................................................. 221
!"##$%&'( )*+( L0iG:;:<0;( =B( L0?=H0>( \0?.G;0( =B( 9:5504(
20B0?<;6(88*7()8+(#0.4:4F(=B(kG43<(B=>(<A0(G;0(:4<04505l6(8887(
)@+(%=<0(#0.4:4F(=B(,9:550416(8887()C+($BB0?<(=B(R=4F(Z4.?<:=46(
222.
ARTICLE 1562 .................................................................................. 222
!"##$%&'()*+(#0.4:4F(=B(#0>?A.4<.J/0(aG./:<]6(88@7()8+(LG/0(
hA04(aG.4<:<]6(%=<(aG./:<]6(Z;(Z4H=/H056(88@I
ARTICLE 1563 .................................................................................. 223
!"##$%&'( $BB0?<( =B( -./0( d450>( <A0( U.<04<( %.D0( =>( &>.50(
Name, 223.
ARTICLE 1564 .................................................................................. 224
!"##$%&'($BB0?<(=B(d;.F0(=B(&>.506(88CI
ARTICLE 1565 .................................................................................. 224
!"##$%&'(LG/0(:4(!.;0(=B(,-./0(\](-.DP/016(88CI
ARTICLE 1566 .................................................................................. 224
!"##$%&'( L0;P=4;:J:/:<]( B=>( 9:5504( 20B0?<;( $H04( :B( -0//0>(
h.;(:4(K==5(Y.:<A6(88C7(20(-.4<=;(HI(ZE!6(KL(SOQO*6(`.4I(8Q6(
*ONN6(88Q7(20(/.(!>Gg(HI(ZE!6(KL(M8ON*6(`.4I(8O6(*ONN6(88QI
ARTICLE 1567 ................................................................................. 225
!"##$%&'()*+(L0D05:0;(:4(!.;0(=B(9:5504(20B0?<;6(88S7()8+(
Applicability to Lease, 226.

xix
ARTICLE 1568 ................................................................................. 226
!"##$%&'($BB0?<(=B(R=;;(=B(<A0(&A:4F(\0?.G;0(=B(<A0(9:5504(
Defects, 226.
ARTICLE 1569 .................................................................................. 226
!"##$%&'()*+($BB0?<(:B(!.G;0(=B(R=;;(h.;(.(Y=><G:<=G;($H04<(
.45(%=<(<A0(9:5504(20B0?<6(88S7()8+(U>=J/0D6(88MI
ARTICLE 1570 .................................................................................. ( 88M
!"##$%&'(EPP/:?.J:/:<](<=(`G5:?:./(-./0;6(88MI
ARTICLE 1571 .................................................................................. 228
!"##$%&'( )*+( U>0;?>:P<:H0( U0>:=56( 88N7( )8+( $BB0?<( =B( #0>0(
%=<:3?.<:=46(88NI
ARTICLE 1572 .................................................................................. 228
!"##$%&'(-./0(=B(&c=(=>(#=>0(E4:D./;(&=F0<A0>6(88NI
ARTICLE 1573 .................................................................................. 228
!"##$%&'(EPP/:?.J:/:<](=B(E><I(*QM8(<=(-./0(=B("<A0>(&A:4F;6(
229.
ARTICLE 1574 .................................................................................. 229
!"##$%&'(hA04(%=(h.>>.4<](EF.:4;<(9:5504(20B0?<;($b-
ists, 229.
ARTICLE 1575 .................................................................................. 229
!"##$%&'([=:5(-./0;(=B(E4:D./;6(88OI
ARTICLE 1576 ................................................................................. 229
!"##$%&'(2034:<:=4(=B(L05A:J:<=>](20B0?<6(88OI
ARTICLE 1577 .................................................................................. 230
!"##$%&'(U>0;?>:P<:H0(U0>:=56(8@X7(\.>6(8@XI
ARTICLE 1578 .................................................................................. 230
!"##$%&'($BB0?<(:B(E4:D./(2:0;(h:<A:4(@(2.];6(8@XI
ARTICLE 1579 .................................................................................. 231
!"##$%&'($BB0?<(:B(-./0(=B(<A0(E4:D./(:;(L0;?:45056(8@*I(
ARTICLE 1580 .................................................................................. 231
!"##$%&'()*+(L0D05:0;(=B(\G]0>(=B(E4:D./;(c:<A(L05A:J:<=>](
20B0?<;6(8@*7()8+(U>0;?>:P<:H0(U0>:=5(B=>($:<A0>(L0D05](CX(5.];(
from date of delivery to the buyer, 231.
ARTICLE 1581 .................................................................................. 231
!"##$%&'(Y=>D(=B(-./0(=B(R.>F0(!.<</06(8@*I

xx
CHAPTER 5 OBLIGATIONS OF THE VENDEE ......................... 232
ARTICLE 1582 .................................................................................. 232
!"##$%&'()*+(U>:4?:P./("J/:F.<:=4;(=B(<A0(\G]0>;6(8@87(-=?=(
HI( `G5F0( #:/:<.4<06( KL( QNOS*6( `.4I( 8N6( *ON@6( 8@87( )8+( \.>6(
8@87()@+($BB0?<(=B(20/:H0>](hA04(%=(&:D0(9.;(\004(Y:b05(B=>(
U.]D04<( =B( <A0( U>:?06( 8@@7( )C+( $BB0?<( =B( 20H:.<:=4;( B>=D( <A0(
Contract, 233.
ARTICLE 1583 .................................................................................. 234
!"##$%&'( )*+( K040>.//]( %=( 20/:H0>]( \]( Z4;<.//D04<;6( 8@C7(
)8+(LG/0;(:4(!.;0(=B(Z4;<.//D04<(20/:H0>:0;6(8@C7(E4<:P=/=(L0-
./<](!=>PI(HI(%.<:=4./(9=G;:4F(EG<A=>:<]6(KL(QXCCC6(EGFI(@*6(
*ONM6(8@CI
ARTICLE 1584 .................................................................................. 236
!"##$%&'( )*+( hA04( \G]0>( 9.;( L:FA<( <=( $b.D:406( 8@S7(
K>.F05.(HI(ZE!6(KL(SMO8O6("?<I(8M6(*ONM6(8@S7()8+(hA04(\G]0>(
9.;(%=(L:FA<(<=($b.D:406(8@MI
ARTICLE 1585 .................................................................................. ( 8@M
!"##$%&'(hA04(&A0>0(:;(E??0P<.4?0(=B(<A0(K==5;6(8@N7(T0>>(
_(!=I(HI(20(/.(L.D.6(**(UA:/I(CQ@6(8@NI
ARTICLE 1586 .................................................................................. 238
!"##$%&'( $H04( :B( \G]0>( E??0P<;6( -0//0>( !.4( -<://( \0( R:-
able, 238.
ARTICLE 1587 .................................................................................. 238
!"##$%&'($BB0?<(:B(\G]0>(`G;<:3.J/](L0BG;0;(<=(E??0P<(<A0(
Delivery, 239.
ARTICLE 1588 .................................................................................. 239
!"##$%&'( $BB0?<( :B( \G]0>( d4^G;<:3.J/]( L0BG;0;( <=( E??0P<(
the Delivery, 239.
ARTICLE 1589 .................................................................................. 239
!"##$%&'(hA04(\G]0>(9.;(<=(U.](B=>(Z4<0>0;<(=4(<A0(U>:?06(
8CX7()8+(&A0(&A>00(!.;0;(!=4<0DP/.<056(8CX7()@+(LG/0(B=>(#=4-
etary Obligations, 240.
ARTICLE 1590 .................................................................................. 240
!"##$%&'()*+(hA04(\G]0>(#.](-G;P045(<A0(U.]D04<(=B(<A0(
U>:?06(8C*7()8+(U>=J/0D6(8C*7(\.>04F(HI(!=G><(=B(EPP0./;6(0<(./I6(
RV*8OM@6(EP>I(8Q6(*OSX6(8C*I
ARTICLE 1591 .................................................................................. 242
!"##$%&'( )*+( hA04( -0//0>( #.]( ZDD05:.<0/]( -G0( B=>( <A0(
L0;?:;;:=4(=B(<A0(-./06(8C87()8+(LG/0(:B(%0:<A0>(K>=G45($b:;<;6(
242.

xxi
 ARTICLE 1592 .................................................................................. 243
!"##$%&'( )*+( L0;?:;;:=4( =B( -./0( =B( L0./( U>=P0><]6( 8C@7( )8+(
$b.DP/0(=B(<A:;(E><:?/06(8CC7()@+(&A0(20D.45(%005056(8CC7()C+(
LG/0( :4( !=4<>.?<;( <=( -0//6( 8CQ7( R0F.>5.( 90>D.4=;( .45( `=;0(
R0F.>5.(HI(Y0/:P0(-./5.m.(HI(!=G><(=B(EPP0./;6(RV8SQMN6(`.4I(
8N6( *OMC6( 8CS7( L=iG0( HI( R.PGg6( RV@8N**6( #.>I( @*6( *ONX6( 8CS7(
`=;0PA(.45(-=4;($4<0>P>:;0;6(Z4?I(HI(!E6(KL(CSMSQ6(EGFI(8O6(
*ONS6(8CS7(R0J0>D.4(L0./<](!=>PI(_(E>.4(L0./<](_(20H0/=P-
D04<( !=>PI( HI( `=;0PA( &]P:4F?=( .45( !E6( KL( *8SSCM6( `G/I( 8O6(
*OON6( 8CS7( )Q+( $BB0?<( =B( -<:PG/.<:=4( E//=c:4F( <A0( &.e:4F( =B(
U=;;0;;:=46(8CMI
ARTICLE 1593 .................................................................................. ( 8CM
!"##$%&'( )*+( L0;?:;;:=4( =B( -./0( =B( U0>;=4./( U>=P0><]6( 8CM7(
)8+( $b.DP/0( =B( <A0( E><:?/06( 8CN7( )@+( L:FA<6( %=<( "J/:F.<:=46( <=(
L0;?:456(8CNI
CHAPTER 6 ACTIONS FOR BREACH OF CONTRACT
OF SALE OF GOODS ............................................... 249
ARTICLE 1594 .................................................................................. 249
!"##$%&'( )*+( K=H0>4:4F( R.c( B=>( E?<:=4;( B=>( \>0.?A( =B(
<A0( !=4<>.?<( =B( -./0( =B( K==5;6( 8CO7( )8+( L0D05]( =B( \G]0>( :4( .(
!=4<>.?<( =B( -./0( J]( <A0( %E#EL!"6( 8CO7( %E#EL!"6( 0<?I( HI(
!/=>:J0/6(RV8SQNQ6(#.>I(*@6(*OSN6(8COI
ARTICLE 1595 .................................................................................. 250
!"##$%&'(LG/0;(:B(\G]0>(L0BG;0;(<=(U.]6(8QXI
ARTICLE 1596 .................................................................................. 251
!"##$%&'( )*+( L0D05]( =B( -0//0>( :B( \G]0>( L0BG;0;( <=( E??0P<(
.45(U.]6(8Q87()8+(#0.;G>0(=B(2.D.F0;6(8Q87()@+(aG0>]6(8Q8I
ARTICLE 1597 .................................................................................. 253
!"##$%&'( hA04( -0//0>( #.]( &=<.//]( L0;?:45( <A0( !=4<>.?<(
of Sale, 253.
ARTICLE 1598 .................................................................................. 253
!"##$%&'(LG/0(hA04(-0//0>(9.;(\>=e04(.(!=4<>.?<(<=(20-
/:H0>(-P0?:3?(=>(E;?0><.:405(K==5;6(8Q@I
ARTICLE 1599 .................................................................................. 254
!"##$%&'( )*+( L0D05:0;( =B( <A0( \G]0>( :B( -0//0>( !=DD:<;( .(
\>0.?A(=B(h.>>.4<]6(8QQ7()8+($BB0?<(:B(\G]0>(-0/0?<;(E4](=B(<A0(
Y=G>( L0D05:0;( K:H046( 8QQ7( )@+( $BB0?<( :B( \G]0>( -<://( E??0P<05(
<A0( K==5;( 20;P:<0( 9:;( T4=c/05F0( =B( <A0( \>0.?A( =B( <A0( h.>-
ranty, 256.
CHAPTER 7 EXTINGUISHMENT OF SALE ............................... ( 8QM
ARTICLE 1600 .................................................................................. ( 8QM

xxii
 !"##$%&'( )*+( 9=c( -./0;( E>0( $b<:4FG:;A056( 8QM7( \0><( ";-
D0m.( HI( !=G><( =B( EPP0./;6( KL( @SQCQ6( `.4I( 8N6( *ON@6( 8QM7( )8+(
Applicability of the Article to Both Consummated and Perfected
!=4<>.?<;6(8QM7()@+($BB0?<(=B(.(!/.:D(B=>(2.D.F0;6(8QMI

Section 1 CONVENTIONAL REDEMPTION ............................... 258

ARTICLE 1601 .................................................................................. 258
!"##$%&'()*+(hA04(!=4H04<:=4./(L050DP<:=4(&.e0;(U/.?06(
8QN7( 9G/F.4g.( HI( !E6( KL( QS*OS6( `.4I( M6( *ONM6( 8QN7( )8+( $BB0?<(
=B(Z4.50iG.?](=B(U>:?06(8QOI
ARTICLE 1602 .................................................................................. 259
!"##$%&'()*+(hA04(.(U.?<=(50(L0<>=(-./0(!.4(\0(U>0;GD05(
.4($iG:<.J/0(#=><F.F06(8SX7()8+(2034:<:=4(=B($iG:<.J/0(#=><-
F.F06(8SX7()@+($BB0?<(=B(-<:PG/.<:=4(U>=H:5:4F(B=>(.(L040c./(=B(
<A0(U.?<=(50(L0<>=6(8S*7()C+($BB0?<(=B(-<:PG/.<:=4(E//=c:4F(\G]0>(
<=( 9.H0( <A0( d;GB>G?<( :4( <A0( #0.4<:D06( 8S*7( E4F0/( [://.>:?.6(
0<(./I(HI(!=G><(=B(EPP0./;6(0<(./I6(RV*O*OS6(%=HI(8O6(*OSN6(8S*7(
#.F<:>.(HI(!=G><(=B(EPP0./;6(RV8MQCM6(#.>I(@*6(*ONX6(8S87((20(
\.]iG04(HI(\./=>=6(KL(8N*S*6(EGFI(*@6(*ONS6(8S@I
ARTICLE 1603 .................................................................................. 263
!"##$%&'($BB0?<(=B(2=GJ<6(8S@I
ARTICLE 1604 .................................................................................. 263
ARTICLE 1605 .................................................................................. 264
!"##$%&'( L0D05]( =B( L0B=>D.<:=46( 8SC7( L.]DG45=( &=/04-
<:4=( _( R=>04g=( L=m=6( ;GJ;<:<G<05( J]( <A0( 90:>;6( >0P>0;04<05(
J]( $DD.4G0/.( L=m=6( .;( E<<=>40]V:4VY.?<( HI( !E6( KL( *8NMQO6(
Aug. 1, 2002, 264.
ARTICLE 1606 .................................................................................. 265
!"##$%&'()*+(&:D0(h:<A:4(hA:?A(<=(L0500D6(8SS7()8+(L0.;=4(
B=>(R:D:<:4F(<A0(U0>:=5(=B(L050DP<:=46(8SS7()@+(-=D0(!.;0;(.;(
<=( <A0( U0>:=5( !=4<0DP/.<056( 8SS7( )C+( $b<04;:=4( =B( <A0( U0>:=5(
h:<A:4(hA:?A(<=(L0500D6(8SM7()Q+($BB0?<(=B($b?0;;(U0>:=56(8SN7(
)S+($BB0?<(=B(<A0(R.;<(h.>(=4(U0>:=5(=B(L050DP<:=46(8SN7()M+(Z;(
!=4;:F4.<:=4(%0?0;;.>]j6(8SN7()N+(L:FA<(<=(L0500D($H04(EB<0>(
Y:4./(`G5FD04<6(8MX7(U05>=(&.P.;(.45(#.>:.(">:m.(50(&.P.;(
HI(!=G><(=B(EPP0./;6(0<(./I6(RV888X86(Y0JI(8M6(*OMS6(8M*7(L=4./5=(
P. Abilla & Geralda A. Dizon v. Carlos Ang Gobonseng, Jr. &
&A0>0;:<.(#:D:0("4F6(KL(*CSSQ*6(EGFI(S6(8XX86(8M87(L=4./5=(
P. Abilla & Geralda A. Dizon v. Carlos Ang Gobonseng, Jr. &
&A0>0;:<.(#:D:0("4F6(KL(*CSSQ*6(`.4I(*M6(8XX86(8M8I
ARTICLE 1607 .................................................................................. ( 8MQ
!"##$%&'( )*+( L0.;=4( B=>( <A0( `G5:?:./( ">50>( \0B=>0( L0F:;-
<>.<:=4( =B( <A0( !=4;=/:5.<:=4( =B( "c40>;A:P6( 8MQ7( )8+( L0iG:;:<0(
B=>(L0F:;<>.<:=4(=B(!=4;=/:5.<:=4(=B("c40>;A:P6(8MQ7(Y>.4?:;?=(

xxiii
 !>:;=/=F=6(0<(./I((HI(Z;..?(!04<04=6(0<(./I6(RV8XX*C6(%=HI(8M6(*OSN6(
8MQ7()@+(aG0>]'(Z;(&A0>0(.(%0?0;;:<](=B(.(`G5:?:./(">50>(B=>(<A0(
!=4;=/:5.<:=4(Z<;0/Bj6(8MS7()C+($BB0?<(=B(Y.:/G>0(<=(!=DP/](h:<A(
.(!0><.:4(!=45:<:=46(8MM7()Q+(!.;06(8MM7(20(\.]iG04(HI(\./=>=6(
KL(8N*S*6(EGFI(*@6(*ONS6(8MMI
ARTICLE 1608 .................................................................................. ( 8MM
!"##$%&'(L:FA<(=B(-0//0>;(a retro(<=(L0500D(U>=P0><](B>=D(
Persons Other than the Buyer a retro6(8MNI
ARTICLE 1609 .................................................................................. ( 8MN
!"##$%&'( )*+( -GJ>=F.<:=4( =B( \G]0>( :4( <A0( -0//0>1;( L:FA<;(
.45(E?<:=46(8MN7()8+($b.DP/0;(=B(L:FA<;(=B([045=>(&>.4;B0>>05(
<=(<A0([045006(8MO7()@+($BB0?<(=B(L0F:;<>.<:=46(8MO7()C+(R:D:<.-
<:=4;6(8MOI
ARTICLE 1610 .................................................................................. ( 8MO
!"##$%&'()*+(hA04(-0//0>1;(!>05:<=>(?.4(G;0(-0//0>1;(L:FA<(
=B( L050DP<:=46( 8MO7( )8+( L0.;=4( cA]( <A0>0( ;A=G/5( 3>;<( J0( .4(
$bA.G;<:=46( 8NX7( )@+( !>05:<=>;( D.]( =B( ?=G>;0( $b0>?:;0( =<A0>(
L:FA<;6( 8NX7( )C+( $BB0?<( =B( !>05:<=>1;( $b0>?:;0( =B( L:FA<( =B( L0-
demption, 280.
ARTICLE 1611 .................................................................................. 280
!"##$%&'()*+(hA04(-0//0>(#.](J0(L0iG:>05(<=(L0500D(<A0(
hA=/0( U>=P0><]( E/<A=GFA( A0( A.5( ;=/5( =4/]( P.><( <A0>0=B6( 8N*7(
)8+(L0.;=4;(B=>(<A0(R.c6(8N*I
ARTICLE 1612 .................................................................................. 281
!"##$%&'(LG/0(hA04(U>=P0><]("c405(:4(!=DD=4(:;(-=/5(J](
the Co-Owners Jointly and in the Same Contract, 281.
ARTICLE 1613 .................................................................................. 282
!"##$%&'()*+(hA04(\G]0>(!.44=<(\0(!=DP0//05(<=(!=4;04<(
<=(.(U.><:./(L050DP<:=46(8N87()8+(L0.;=4(B=>(<A0(R.c6(8N8I
ARTICLE 1614 .................................................................................. 282
!"##$%&'()*+(hA04(!=V"c40>;(-0//(&A0:>(-A.>0;(-0P.>.<0/]6(
8N@7()8+($b.DP/06(8N@I
ARTICLE 1615 .................................................................................. 283
!"##$%&'(LG/0(:B(\G]0>(2:0;6(R0.H:4F(-0H0>./(90:>;6(8N@I
ARTICLE 1616 .................................................................................. 284
!"##$%&'( )*+( hA.<( -0//0>( #G;<( K:H0( \G]0>( :B( L050DP<:=4(
:;( #.506( 8NC7( )8+( U>:?0( <=( \0( L0<G>405( %=<( <A0( [./G06( 8NC7(
)@+(&A0($bP04;0;(=B(<A0(!=4<>.?<6(8NC7()C+(&A0(%0?0;;.>](.45(
d;0BG/($bP04;0;6(8NQ7()Q+(%=(L0:DJG>;0D04<(B=>(R.45(&.b0;6(
8NQ7()S+($BB0?<(:B(\G]0>(&0//;(-0//0>(&A.<(L050DP<:=4(h=G/5(\0(
L0BG;056(8NQ7()M+(\.>6(8NSI

xxiv
 ARTICLE 1617 .................................................................................. 286
!"##$%&'( )*+( LG/0( c:<A( L0;P0?<( <=( Y>G:<;6( 8NS7( )8+( L0.;=4(
B=>(U>=>.<:4F(:4(<A0(-0?=45(U.>.F>.PA6(8NMI
ARTICLE 1618 .................................................................................. ( 8NM
!"##$%&'()*+(U>=P0><](<=(\0(Y>005(K040>.//](Y>=D(!A.>F0;(
.45(#=><F.F0;6(8NM7()8+(aG0>]6(8NM7()@+(R0.;06(8NMI

Section 2 LEGAL REDEMPTION ................................................... 288

ARTICLE 1619 .................................................................................. 288
!"##$%&'()*+(R0F./(L050DP<:=46(8NN7()8+($b.DP/0;(=B(R0F./(
L050DP<:=46(8NN7(E>40/(-](HI(!E6(-<.<0(Z4H0;<D04<(9=G;06(Z4?I(
.45( <A0( L0F:;<0>( =B( 2005;( =B( L:g./6( KL( NN*@O6( EP>I( *86( *ONO6(
8OX7( )@+( U>0V0DP<:=4( .45( L050DP<:=4( 2:;<:4FG:;A056( 8O@7( )C+(
\.;:;(=B(R0F./(L050DP<:=46(8O@7()Q+(U>=P0><](EBB0?<056(8O@7()S+(
-A0>:BB1;(-./06(8OCI
ARTICLE 1620 .................................................................................. 294
!"##$%&'()*+(L:FA<(=B(R0F./(L050DP<:=4(=B(!=V"c40>6(8OC7(
";?.>(!I(Y0>4.450g6(0<(./I(HI(-P;I(!.>/=;(_(%.>?:;.(&.>G46(KL(
*C@NSN6( %=HI( *C6( 8XX86( 8OC7( )8+( hA=( !.4( $b0>?:;0( <A0( L:FA<(
=B(R0F./(L050DP<:=46(8OQ7(Y050>:;(HI(-G4F.6(RV@CNX@6(`.4I(*M6(
*ONQ6(8OS7()@+($4<:>0(ED=G4<(=B(L050DP<:=46(8OSI
ARTICLE 1621 .................................................................................. ( 8OM
!"##$%&'()*+(R0F./(L050DP<:=4(J](E5^.?04<("c40>(=B(LG-
>./(U>=P0><]6(8OM7()8+(EF.:4;<(hA=D(L:FA<(!.4(\0($b0>?:;056(
8OM7(Y.J:.(HI(Z4<0>D05:.<0(EPP0//.<0(!=G><6(RVSS*X*6(%=HI(886(
1984, 298.
ARTICLE 1622 .................................................................................. 298
!"##$%&'(R0F./( U>0V0DP<:=4( .45( L050DP<:=4( J]( E5^.?04<(
"c40>;(=B(d>J.4(U>=P0><]6(8ON7("><0F.(HI(">?:40(.45($;P/.4.6(
LV8N@*M6(#.>I(@*6(*OM*6(8OO7(Y:50/.(R0F.;P:(HI(!=G><(=B(EPP0./;6(
0<(./I6(RV@ONMM6(Y0JI(8X6(*OMS6(8OOI
ARTICLE 1623 .................................................................................. 300
!"##$%&'()*+(h:<A:4(hA.<(U0>:=5(L:FA<(#.](\0($b0>?:;056(
@XX7(2=>=D./(HI(!=G><(=B(EPP0./;6(RV@SXN@6(-0PI(Q6(*OMQ6(@X*7(
)8+(U>0B0>04?0(=B(!=V=c40>;6(@X*7()@+(U>=J/0D6(@X*7()C+(%=<:3?.-
<:=4( <=( \G]0>( <A.<( L050DP<:=4( h=G/5( \0( $b0>?:;056( @X87( )Q+(
L050DP<:=4("BB0>(#G;<(\0(h:<A(R0F./(&0450>6(@X87()S+(!.;0;6(
@X87($<?GJ.4(HI(!E6(KL(CQ*SC6(#.>I(*S6(*ONM6(@X87(!.J>0>.(HI(
[://.4G0H.6(KL(MQXSO6(EP>I(*Q6(*ONN6(@X@7(#.>:.4=(HI(!E6(C*(
-!E2(O8M()*OO@+6(@XC7(E5./:.(\I(Y>.4?:;?=(HI(W04.:5.(\=:;0>6(
KL(*@MSMM6(#.](@*6(8XXX6(@XQI

xxv
CHAPTER 8 ASSIGNMENT OF CREDITS AND
OTHER INCORPOREAL RIGHTS ........................ 306
ARTICLE 1624 .................................................................................. 306
!"##$%&'( )*+( E;;:F4D04<( =B( !>05:<( .45( L:FA<;6( @XS7( )8+(
Perfection of Assignment, 306.
ARTICLE 1625 .................................................................................. 306
!"##$%&'( )*+( $BB0?<:H:<]( EF.:4;<( &A:>5( U0>;=4;6( @XS7( )8+(
#=><F.F06(@XM7()@+(K>.<G:<=G;(E;;:F4D04<;6(@XMI
ARTICLE 1626 .................................................................................. ( @XM
!"##$%&'( )*+( LG/0( ZB( 20J<=>( U.];( !>05:<=>( \0B=>0( Y=>D0>(
T4=c;( =B( <A0( E;;:F4D04<6( @XM7( )8+( -=D0( !>=;;( L0B0>04?0;6(
@XM7( )@+( LG/0( :B( .( &A:>5( U.><]( 9.;( <A0( YG45;6( @XN7( )C+( !.;06(
@XN7(-=G<A(!:<](9=D0;6(Z4?I6(Y=><G40(#=<=>;()UA:/;I+6(U./.c.4(
RGDJ0>(#.4GB.?<G>:4F(!=>PI(HI(\E(Y:4.4?0(!=>PI6(KL(*@QCS86(
20?I(M6(8XX*6(@XNI
ARTICLE 1627 .................................................................................. 309
!"##$%&'( L:FA<;( Z4?/G505( :4( <A0( E;;:F4D04<( =B( .( !>05:<6(
309.
ARTICLE 1628 .................................................................................. 309
!"##$%&'( )*+( h.>>.4<:0;( :4( <A0( E;;:F4D04<( =B( .( !>05:<6(
@XO7()8+($b.DP/06(@*X7()@+(,E;;:F4D04<(=B(!>05:<1(2034056(@*X7(
%]?=( -./0;( !=>PI( HI( \E( Y:4.4?0( !=>PI6( KL( M*SOC6( EGFI( *S6(
1991, 310.
ARTICLE 1629 .................................................................................. 312
!"##$%&'( )*+( 2G>.<:=4( =B( <A0( h.>>.4<]( B=>( <A0( 20J<=>1;(
-=/H04?]6(@*87()8+($b.DP/06(@*@I
ARTICLE 1630 .................................................................................. 313
!"##$%&'()*+(h.>>.4<](=B(.(U0>;=4(hA=(-0//;(.4(Z4A0>:<.4?0(
h:<A=G<(.4($4GD0>.<:=4(=B(<A0(&A:4F;(Z4?/G505(&A0>0:46(@*@7(
(2) Sale of Future Inheritance, 314.
ARTICLE 1631 .................................................................................. 314
!"##$%&'( -./0( Y=>( .( RGDP( -GD( =B( <A0( hA=/0( =B( !0><.:4(
L:FA<;6(L04<;6(=>(U>=5G?<;6(@*CI
ARTICLE 1632 .................................................................................. 314
!"##$%&'( LG/0( :B( [045=>( -<://( U>=3<;( 20;P:<0( -./0( =B( <A0(
Inheritance, 314.
ARTICLE 1633 .................................................................................. 314
!"##$%&'(!=>>0;P=45:4F(2G<](=B(.(\G]0>6(@*CI
ARTICLE 1634 .................................................................................. 315

xxvi
 !"##$%&'( -./0( =B( .( !>05:<( =>( "<A0>( Z4?=>P=>0./( L:FA<;( :4(
Litigation, 315.
ARTICLE 1635 .................................................................................. 316
!"##$%&'(Z4;<.4?0;(hA04(<A0(R0F./(L050DP<:=4(:;(204:056(
316.
CHAPTER 9 GENERAL PROVISIONS .......................................... ( @*M
ARTICLE 1636 .................................................................................. ( @*M
!"##$%&'(2034:<:=4(=B(!0><.:4(&0>D;6(@*NI(
ARTICLE 1637 .................................................................................. 318
!"##$%&'(U>=<0?<:=4(<=(Z44=?04<(&A:>5(U0>;=4;(:4(!=440?-
<:=4(h:<A(<A0(-./0(=B(L$ER(U>=P0><]6(@*N7(L0PGJ/:?(HI(EiG:4=6(
KL(@@ON@6(`.4I(8M6(*ON@6(@*NI
Title VII. BARTER OR EXCHANGE ................................................... 319
ARTICLE 1638 .................................................................................. 319
!"##$%&'()*+(,\.><0>1(2034056(@*O7()8+(!=4;GDD.<:=4(.45(
U0>B0?<:=4( =B( <A0( !=4<>.?<6( @*O7( )@+( -<>:?<( !=4;<>G?<:=4( =B( <A0(
Price Control Law, 319.
ARTICLE 1639 .................................................................................. 320
!"##$%&'($BB0?<(:B(K:H0>(c.;(%"&(<A0("c40>(=B(<A0(&A:4F(
Delivered, 320.
ARTICLE 1640 .................................................................................. 320
!"##$%&'($BB0?<(=B($H:?<:=4(:4(!.;0(=B(\.><0>6(@8XI
ARTICLE 1641 .................................................................................. 320
!"##$%&'( -GPP/0D04<./( d;0( =B( <A0( U>=H:;:=4( =4( -./0;6(
321.
Title VIII. LEASE .................................................................................... 322

CHAPTER 1 GENERAL PROVISIONS .......................................... 322

ARTICLE 1642 .................................................................................. 322
!"##$%&'()*+(,R0.;01()Z4(K040>./+(2034056(@887()8+(T:45;(=B(
R0.;0;()Y>=D(<A0([:0cP=:4<(=B(-GJ^0?<(#.<<0>+6(@88I
ARTICLE 1643 .................................................................................. 322
!"##$%&'()*+(,R0.;0(=B(&A:4F;1(2034056(@8@7()8+(!A.>.?<0>-
:;<:?;(=>(L0iG:;:<0;(B=>(R0.;0(=B(&A:4F;6(@8@7(RR(.45(!=DP.4](
Development and Agro Industrial Corp. v. Huang Chao Chun
_(f.4F(&G4F(Y.6(KL(*C8@MN6(#.>I(M6(8XX86(@8Q7()@+(,L04<1(20-
34056(@8S7()C+(-A.>0(&04.4?](nn(hA04(9=G;0(:;(!=4;<>G?<056(
@8M7( !0B0>:4=( #.>?0/=( HI( %.g.>:=( 50( R0=46( RV*8OX86( `G/I( 8O6(
*OQO6(@8M7()Q+(2:;<:4?<:=4;(\0<c004(,R0.;0(=B(&A:4F;1(.45(,"<A0>(

xxvii
 !=4<>.?<;16(@8N7()S+(aG0>:0;6(@@87()M+(!.;0;6(@@@7(-]iG:.(HI(!E6(
KL(S*O@86(`G4I(@X6(*ONM6(@@@7(ZD0/5.(LI(#.>?=;(HI(-.45:F.4-
J.].46( KL( *8SOOQ6( "?<I( S6( *OON6( @@@7( )N+( #0DJ0>;A:P( :4( .(
9=D0=c40>1;( E;;=?I( :;( [=/G4<.>]( .45( ?.44=<( J0( d4:/.<0>.//](
Y=>?056( @@C7( -<.I( !/.>.( 9=D0=c40>1;( E;;=?I( )<A>G( :<;( \=.>5(
=B( 2:>0?<=>;+( HI( -P;I( [:?<=>( #.I( K.;<=4( _( R]5:.( K.;<=46( KL(
141961, Jan. 23, 2002, 334.
ARTICLE 1644 .................................................................................. ( @@M
!"##$%&'()*+(R0.;0(=B(,h=>e1(=>(,-0>H:?016(@@M7()8+(2:;<:4?<:=4;(
\0<c004(<A0(R0.;0(=B(-0>H:?0;(.45(!=4<>.?<(B=>(.(U:0?0(=B(h=>e6(
@@M7( )@+( $b.DP/0;6( @@N7( )C+( -:D:/.>:<:0;6( @@O7( )Q+( 2:;<:4?<:=4;(
\0<c004(,R0.;0(=B(-0>H:?0;1(.45(,EF04?]16(@@O7(%:0/;04(_(!=I6(
Z4?I( HI( R0P.4<=( !=4;=/:5.<05( #:4:4F( !=I6( RV8*SX*6( 20?I( 8N6(
*OSN6(@@O7()S+(!=DP04;.<:=4(:4(R0.;0(=B(-0>H:?0;6(@C*I
ARTICLE 1645 .................................................................................. 342
!"##$%&'()*+(K040>./(LG/0(B=>(R0.;0(=B(!=4;GD.J/0(K==5;6(
@C87()8+($b?0P<:=4;6(@C8I

CHAPTER 2 LEASE OF RURAL AND URBAN LANDS ........... 343

Section 1 GENERAL PROVISIONS ................................................. 343
Z%&L"2d!&"Lf( !"##$%&'( )*+( ,LG>./( R.45;1( 20B:405(
)U>=5G?<VU>=5G?:4F( R.45;+6( @C@7( )8+( ,d>J.4( R.45;1( 203405(
)%=4VU>=5G?<(U>=5G?:4F(R.45;+6(@C@7()@+(U>=J/0D6(@C@7()C+(Y=>D(
for the Contract of Lease of Things, 343.
ARTICLE 1646 .................................................................................. 344
!"##$%&'(U0>;=4;(2:;iG./:305(<=(\0(R0;;00;(\0?.G;0(2:;-
iG./:305(<=(\G]6(@CCI
ARTICLE 1647 .................................................................................. 345
!"##$%&'()*+(UG>P=;0(:4(L0?=>5:4F(.(R0.;06(@CQ7()8+(U>=P0>(
EG<A=>:<]( L0iG:>056( @CQ7( )@+( E5D:4:;<>.<:=4( =B( U.>.PA0>4./(
U>=P0><]6( @CQ7( !AG.( HI( !=G><( =B( EPP0./;6( RVSXX*Q6( 20?I( *O6(
*ONC6( @CS7( )C+( EG<A=>:<]( =B( 9G;J.45( <=( R0.;0( U.>.PA0>4./(
U>=P0><]( <=( "<A0>;6( @CS7( &.4( aG0<=( HI( !=G><( =B( EPP0./;6( KL(
@QSCN6(#.](*S6(*ON@6(@CM7()Q+(L0.;=4(B=>(L0iG:>:4F(<A0(-P0?:./(
U=c0>(=B(E<<=>40](:B(<A0(R0.;0(:;(<=(J0(L0?=>505(:4(<A0(L0F:;<>](
=B(U>=P0><]6(@CM7()S+(EG<A=>:<](=B(Y.<A0>(E5D:4:;<0>:4F(!A:/51;(
L0./($;<.<06(@CMI
ARTICLE 1648 .................................................................................. ( @CM
!"##$%&'()*+(L0?=>5:4F(=B(R0.;0(=B(L0./(U>=P0><]6(@CM7()8+(
$BB0?<;(:B(<A0(R0.;0(=B(L0./(U>=P0><](:;(%=<(L0F:;<0>056(@CNI
ARTICLE 1649 .................................................................................. 348
!"##$%&'()*+(E;;:F4D04<(=B(<A0(R0.;06(@CO7()8+(L0.;=4(B=>(
<A0(R.c6(@CO7(2.eG5.=(HI(`G5F0(!=4;=/.?:=46(KL(QCMQ@6(`G4I(

xxviii
 8C6(*ON@6(@CO7()@+(hA04(,E;;:F4D04<1(:;(%=<(L0.//](.4(E;;:F4-
D04<6(@QX7()C+(#=><F.F0(=B(<A0(R0.;0(L:FA<;6(@QXI
ARTICLE 1650 .................................................................................. 350
!"##$%&'()*+(L:FA<(=B(R0;;00(<=(-GJ/0.;06(@QX7()8+(,-GJ/0.;01(
2:;<:4FG:;A05(B>=D(,E;;:F4D04<16(@Q*7(#.4/.P.<(HI(-./.g.>6(ON(
UA:/I( @QS6( @Q*7( )@+( $BB0?<( =B( ZDP/:05( U>=A:J:<:=4( <=( -GJ/0.;06(
@Q87()C+(U>=J/0D6(@Q87()Q+(E4=<A0>(U>=J/0D6(@Q@7()S+(!.;06(@QC7(
Y:/=:/(L0340>](!=>PI6(0<(./I(HI(`G5F0(#045=g.6(0<(./I6(KL(QQQ8S6(
`G4I(*Q6(*ONM6(@QCI
ARTICLE 1651 .................................................................................. 354
!"##$%&'()*+(R:.J:/:<](=B(-GJ/0;;00(&=c.>5;(R0;;=>6(@QC7()8+(
2:>0?<(E?<:=4(J](<A0(R0;;=>()E??:=4(2:>0?<.+6(@QC7()@+(U>=J/0D6(
@QQ7()C+(!.;06(@QQ7(#.>:DP0>:=(!=DP.m:.(%.H:0>.6(-E(HI(!E6(
KL(CX8@C6(20?I(*C6(*ONM6(@QQI
ARTICLE 1652 .................................................................................. 356
!"##$%&'()*+(-GJ;:5:.>](R:.J:/:<](=B(-GJ/0;;00(B=>(<A0(L04<6(
@QS7()8+(L0.;=4(B=>(<A0(2:;>0F.>5(:4(K040>./(=B(E5H.4?05(U.]-
D04<6(@QS7()@+($BB0?<(=4(-GJ/0;;00(:B(<A0(R0;;00(:;("G;<056(@QS7(
-:P:46(0<(./I(HI(!YZ(=B(#.4:/.6(MC(UA:/I(SCO6(@QM7(\>=50<<(HI(20(
/.( L=;.6( MM( UA:/I( QM86( @QM7( UA:/I( !=4;=/:5.<05( Y>0:FA<( R:40;6(
Z4?I( HI( E^=46( 0<( ./I6( RV*X8XSVXN6( EP>I( *S6( *OQN6( @QM7( -]^G?=( HI(
!E(.45(U:/:P:4.;(\.4e6(KL(NXNXX6(EP>I(*86(*ONO6(@QN7(`G/:G;(
!I(">0.4=(HI(!E6(0<(./I6(KL(OQOXX6(`G/I(8@6(*OO86(@QOI
ARTICLE 1653 .................................................................................. 359
!"##$%&'()*+(R0;;=>1;(h.>>.4<:0;6(@QO7()8+(U.><:./(20/:H0>](=B(
<A0(R.456(@QO7()@+(R:.J:/:<](=B(R0;;=>(B=>(9:5504(20B0?<;6(@QOI
Section 2 RIGHTS AND OBLIGATIONS OF THE
LESSOR AND THE LESSEE .................................. 360
ARTICLE 1654 .................................................................................. 360
!"##$%&'( )*+( &A>00( ZDP=><.4<( 2G<:0;( =B( <A0( R0;;=>6( @SX7(
)8+(&A0(2G<](<=(20/:H0>6(@SX7()@+(&A0(2G<](<=(#.e0(%0?0;;.>](
L0P.:>;6(@S*7()C+(#.:4<04.4?0(:4(U=;;0;;:=46(@S8I
ARTICLE 1655 .................................................................................. 363
!"##$%&'( )*+( $BB0?<( =B( &=<./( =>( U.><:./( 20;<>G?<:=46( @S@7(
)8+($b.DP/06(@S@7()@+(!.;0;6(@SC7(L=?0;(HI(L:?e.>5;6()!IEI+(CQ(
"IKI()-GPPI+6(PI(OM6(@SC7(-A=<c0//(HI(#.4:/.(#=<=>(!=I6(Q@("IKI(
*C8@6(RVMS@M6(20?I(8O6(*OQS6(@SC7()C+(U.><:./(20;<>G?<:=46(@SC7(
(5) Illustrative Problem, 365.
ARTICLE 1656 .................................................................................. 365
!"##$%&'()*+(R0;;=>1;(L:FA<(<=(!=4<:4G0($4F.F:4F(:4(-.D0(
\G;:40;;(=>(Z45G;<>]6(@SQ7()8+(#.](R0;;=>(,\0F:41(<A0(\G;:40;;j6(
@SQ7()@+($b.DP/06(@SSI

xxix
ARTICLE 1657 .................................................................................. 366
!"##$%&'( )*+( 2G<]( =B( R0;;00( <=( U.]( <A0( R$E-$( ULZ!$(
)L$%&+6(@SS7(R:DP:4(Z4H0;<D04<(!=>PI(HI(R:D(-]6(KL(@*O8X6(
EP>I(N6(*ONN6(@SM7(Y:/=:/(L0340>](!=>PI6(0<(./I(HI(#045=g.6(KL(
QQQ8S6(`G4I(*Q6(*ONM6(@SM7(L.D=4(#.F;.];.](Ec.>5(Y=G45.-
<:=4(HI(!=G><(=B(EPP0./;6(RVQQOON6(`.4I(*M6(*ONQ6(@MX7(R0F.>5.(
HI(W.>.<06(@S(UA:/I(SN6(@MX7([0/.;?=(HI(R.=(&.D6(8@(UA:/I(COQ6(
@MX7(U.>>.5.(HI(`=V`G.]?=6(C(UA:/I(M*X6(@MX7(&>:4:5.5(50(R0=4(
[5.I(50(L=b.;(HI(!=G><(=B(EPP0./;6(RV@O*CS6(#.>I(8Q6(*OMQ6(@M*7(
!.J.<.4( HI( !=G><( =B( EPP0./;6( RVCCNMQVMS6( RVCQ*SX6( RVCS8**V
*86(`.4I(*86(*ONX6(@M*7()8+(2G<](=B(R0;;00(<=(d;0(U>=P0>/](<A0(
&A:4F(R0.;056(@M*7()@+(2G<](=B(R0;;00(<=(U.](<A0($bP04;0;(B=>(
<A0(2005(=B(R0.;06(@M8I
ARTICLE 1658 .................................................................................. ( @M8
!"##$%&'()*+(hA04(R0;;00(#.](-G;P045(<A0(U.]D04<(=B(<A0(
L04<6(@M87()8+($BB0?<(:B(!.G;0(B=>(<A0(-G;P04;:=4(!0.;0;6(@M87(
)@+($BB0?<:H:<](=B(<A0(-G;P04;:=46(@M@I
ARTICLE 1659 .................................................................................. ( @M@
!"##$%&'( )*+( E/<0>4.<:H0( L0D05:0;( =B( EFF>:0H05( U.><](
:4( !.;0( =B( %=4VBG/3//D04<( =B( 2G<:0;6( @M@7( \.04;( HI( !=G><( =B(
EPP0./;6( KL( QMXO*6( %=HI( 8@6( *ON@6( @M@7( )8+( L0;?:;;:=46( @MC7(
#=4<040F>=(HI(L=b.;(50(K=D0g6(QN(UA:/I(M8S6(@MC7(UA:/I(EDG;0-
D04<( $4<I6( Z4?I( HI( %.<:H:5.56( KL( 8*NMS6( -0PI( 8O6( *OSM6( @MC7(
)@+( aG0>]6( @MQ7( )C+( &A0( L0D05]( =B( 2.D.F0;6( @MQ7( -GDD0>;(
HI( #.A:4.]6( )!I%I+( CX( "IKI( )-GPPI+6( %=HI( *6( *OC*6( PI( CX6( @MQ7(
R:D^.P(HI(E4:D.;6(RVQ@@@C6(`.4I(*M6(*ONQ6(@MSI
ARTICLE 1660 .................................................................................. ( @MS
!"##$%&'( )*+( LG/0( hA04( U/.?0( Z;( 2.4F0>=G;( <=( R:B0( =>(
90./<A6(@MS7()8+(L0.;=4(B=>(<A0(R.c6(@MSI
ARTICLE 1661 .................................................................................. ( @MM
!"##$%&'( )*+( E/<0>.<:=4( =B( <A0( Y=>D( =B( <A0( R0.;0( J]( <A0(
R0;;=>6(@MM7()8+(E/<0>.<:=4(J](<A0(R0;;006(@MMI
ARTICLE 1662 .................................................................................. ( @MM
!"##$%&'()*+(LG/0(:4(!.;0(=B(d>F04<(L0P.:>;6(@MM7()8+(R04F<A(
=B(&:D0(B=>(L0P.:>;6(@MNI
ARTICLE 1663 .................................................................................. ( @MN
!"##$%&'()*+(2G<:0;(=B(R0;;00(!=4?0>4:4F(d;G>P.<:=4(.45(
L0P.:>;6(@MN7()8+($BB0?<(:B(R0;;00(Y.:/;(<=(!=DP/]6(@MO7()@+($B-
B0?<;(:B(R0;;=>(Y.:/;(<=(#.e0(<A0(d>F04<(L0P.:>;6(@MOI
ARTICLE 1664 .................................................................................. ( @MO
!"##$%&'(&c=(T:45;(=B(&>0;P.;;(h:<A(L0;P0?<(<=(<A0(U>=P-
0><](R0.;056(@MO7([5.I(50([://.>G0/6(0<(./I(HI(#.4:/.(#=<=>(!=I(
and Colmenares, L-10394, Dec. 13, 1958, 380.

xxx
ARTICLE 1665 .................................................................................. 385
!"##$%&'()*+(2G<](=B(R0;;00(<=(L0<G>4(<A0(U>=P0><](R0.;056(
@NQ7()8+(9=c(<A0(L0<G>4:4F(:;(#.506(@NQ7()@+(hA04(L0<G>4(#G;<(
J0(#.506(@NQ7()C+(!.;06(@NQ7(-]^G?=(HI(!E(.45(U:/:P:4.;(\.4e6(
KL(NXNXX6(EP>I(*86(*ONO6(@NQI

ARTICLE 1666 .................................................................................. 386

!"##$%&'( U>0;GDP<:=4( &A.<( R0;;00( 9.5( L0?0:H05( <A0(

Things in Good Condition, 386.

ARTICLE 1667 .................................................................................. 386

!"##$%&'( )*+( L0;P=4;:J:/:<]( B=>( 20<0>:=>.<:=4( =>( R=;;(

nn( K040>./( LG/06( @NS7( )8+( $b?0P<:=46( @NM7( K=4g./0;( HI( #.<0=6(
MC(UA:/I(SM@6(@NMI

ARTICLE 1668 .................................................................................. ( @NM

!"##$%&'()*+(20<0>:=>.<:=4(!.G;05(J]("<A0>;6(@NM7()8+(L0.-
;=46(@NM7()@+(aG0>]6(@NNI((

ARTICLE 1669 .................................................................................. 388

!"##$%&'()*+(hA04(R0.;0(:;(-GPP=;05(<=($456(@NN7()8+(%0?0;-
;:<](=>(%=4V40?0;;:<](=B(20D.456(@NN7(\0>4.>5=(HI(U0=P/06(KL(
S8**C6( `G/I( Q6( *ON@6( @NO7( 2.eG5.=( HI( `G5F0( !=4;=/.?:=46( KL(
QCMQ@6(`G4I(8C6(*ON@6(@NO7(!.J.//0>=(HI(!E6(KL(QONNN6(`.4I(8O6(
*OO@6(@NO7(R0;.?.(HI(`G5F0(!G0H.;6(KL(CNC*O6("?<I(8M6(*OO@6(
@OX7()@+("BB0>(<=(-0//6(@OX7()C+(LG/0;(=4($b<04;:=4(=B(<A0(R0.;0(
U0>:=56(@O*7(R:<.=(HI(%.<:=4./(E;;=?:.<:=4(=B(L0<:>05(!:H:/($D-
P/=]00;6(RV*NOON6(`G/I(@*6(*OS@6(@O87(L.D=4(#.F;.];.](Ec.>5(
Y=G45.<:=4(HI(!=G><(=B(EPP0./;6(RVQQOON6(`.4I(*M6(*ONQ6(@O8I

ARTICLE 1670 .................................................................................. 393

!"##$%&'()*+(ZDP/:05(%0c(R0.;0()&.?:<.(L0?=45G??:=4+6(@O@7(
UG/:5=(HI(R.g.>=6(KL(M8NMX6(Y0JI(8@6(*ONN6(@O@7()8+($BB0?<;(=B(
<A0(ZDP/:05(%0c(R0.;06(@OC7(KG;<:/=(HI(!=G><(=B(EPP0./;6(KL(
S*XN@6(Y0JI(8N6(*ON@6(@OC7(#:>.45.6(0<(./I(HI(R:D(-A:6(RV*NCOC6(
20?I(8C6(*OSC6(@OC7()@+(hA04(&A0>0(Z;(%=(ZDP/:05(%0c(/0.;06(
@OQ7( )C+( Z//G;<>.<:H0( U>=J/0D6( @OQ7( )Q+( $BB0?<( =B( ZDP/:05( %0c(
R0.;0("4($b?0P<:=4./(!=45:<:=4;(:4(<A0(!=4<>.?<6(@OS7(2:g=4(
HI(#.F;.];.]6(RV8@@OO6(#.](@*6(*OMC6(@OS7()S+(%=(ZDP/:05(L0-
40c./(=B(R0.;06(@OM7(ED:.4=(&=>>0;(_(`=;034.(&=>>0;(HI(!IEI(
_(E50/.(\I(Y/=>0;6(KL(O8QCX6(20?I(**6(*OO86(@OMI

ARTICLE 1671 .................................................................................. ( @OM

!"##$%&'(LG/0(:B(R0;;=>("J^0?<;(<=(R0;;001;(!=4<:4G05(U=;-
;0;;:=46( @OM7( 2.eG5.=( HI( `G5F0( !=4;=/.?:=46( KL( QCMQ@6( `G4I(
8C6(*ON@6(@ON7(d:?A.4F?=6(0<(./I(HI(R.G>://.6(RV*@O@Q6(`G4I(@X6(
1960, 398.

xxxi
ARTICLE 1672 .................................................................................. 399
!"##$%&'( $BB0?<( =B( ZDP/:05( %0c( R0.;0( =4( -G>0<:0;( .45(
Guarantors, 399.
ARTICLE 1673 .................................................................................. 399
!"##$%&'( )*+( !.G;0;( B=>( $^0?<D04<( =B( <A0( R0;;006( CXX7(
!>Gg(HI(`G5F0(UG4=6(`>I6(KL(QXOON6(`.4I(@*6(*ON@6(CXX7(U0>.4(
HI( U>0;:5:4F( `G5F06( KL( QM8QO6( "?<I( *@6( *ON@6( CXX7( ED045:4F(
!0><.:4(U>=H:;:=4;(=B(L0PGJ/:?(E?<(%=I(S@QO($4<:</05(kE4(E?<(
&=( L0FG/.<0( L04<./;( B=>( &c=( f0.>;( =B( 2c0//:4F( d4:<;( =>( =B( .(
R.45(=4(hA:?A(E4=<A0>1;(2c0//:4F(Z;(R=?.<05(.45(U04./:g:4F(
[:=/.<:=4;(&A0>0=B6(.45(B=>("<A0>(UG>P=;0;6l(CX*7(!.JG>4.](HI(
"4F;:.e=6( KL( QM@8*6( Y0JI( 8C6( *ON@6( CX87( -:4?/.:>( HI( !E6( KL(
Q8C@Q6( `G/I( 8X6( *ON86( CX87( L0PGJ/:?( E?<( O*S*6( CX87( Overview,
CX87(K>=G45;(B=>(`G5:?:./($^0?<D04<6(CXC7(U>=A:J:<:=4(EF.:4;<(
$^0?<D04<( J]( L0.;=4( =B( -./0( =B( #=><F.F06( CXQ7( L04<V<=V"c4(
-?A0D06(CXQ7(EPP/:?.<:=4(=B(!:H:/(!=50(.45(LG/0;(=B(!=G><6(CXS7(
#:;?0//.40=G;( #.<<0>;6( CXS7( )8+( R.c;( EBB0?<:4F( d>J.4( R.45(
L0B=>D6(CXM7()@+(!.;0;6(CXM7(\0>DG50g(HI(ZE!6(KL(M@8XS6(EGFI(
S6( *ONS6( CXM7( 9=G;0( Z4<0>4.<:=4./( \G:/5:4F( &04.4<;( E;;=?:.-
<:=46(Z4?I(HI(ZE!6(KL(MQ8NM6(`G4I(@X6(*ONM6(CXN7()C+($bP:>.<:=4(
=B(<A0(U0>:=56(CXN7(!>Gg(HI(UG4=6(`>I6(KL(QXOON6(`.4I(@*6(*ON@6(
CXO7( -.4<=;6( 0<( ./I( HI( !=G><( =B( EPP0./;6( KL( CQXM*6( #.]( @X6(
*ON@6( CXO7( !>Gg( HI( UG4=6( `>I6( KL( QXOON6( `.4I( @*6( *ON@6( CXO7(
Y>.4?:;?=(-.G>0(HI(9=4I(U04<0?=;<.;6(RVCSCSN6(#.](8*6(*ON*6(
CXO7(\.04;(HI(!=G><(=B(EPP0./;6(KL(QMXO*6(%=HI(8Q6(*ON@6(CXO7(
Limpin Investment Corp. v. Lim Sy, L-31920, Apr. 8, 1988,
C*X7()Q+(%=4VU.]D04<(=B(L04<6(C*X7(&>:4:5.5(50(R0=4([5.I(50(
L=b.;(HI(!=G><(=B(EPP0./;6(RV@O*CS6(#.>I(8Q6(*OMQ6(C**7(U0<>.(
[5.I(50(\=>>=D0=(HI(U=F=]6(KL(S@8MM6(%=HI(8O6(*ON@6(C*87()S+(
[:=/.<:=4( =B( !=4<>.?<G./( !=45:<:=4;6( C*@7( )M+( %=( EG<A=>:<]( <=(
G;0(Y=>?0(.45([:=/04?06(C*@7(90:>;(=B(U05>=(R.G>=>.(_(R0=4=>.(
R.G>=>.(HI(-<0>/:4F(&0?A4=P.>e(ZZZ(_(-IUI(U>=P0><:0;6(Z4?I6(KL(
146815, Apr. 9, 2003, 413.
ARTICLE 1674 .................................................................................. 413
!"##$%&'()*+(h>:<(=B(U>0/:D:4.>](#.45.<=>](Z4^G4?<:=4(:4(
$^0?<D04<(!.;0;6(C*C7(dJ.>>.(HI(&0?;=46(E5D:4:;<>.<:H0(#.<-
<0>(%=I(LVCVL&`6(`.4I(*M6(*ONQ6(C*C7(L=b.;(HI(ZE!6(KL(MC8MO6(
`.4I(8X6(*ONN6(C*C7(&=P(L.<0(Z4<0>4.<:=4./(-0>H:?0;6(Z4?I(HI(!E6(
0<(./I6(KL(NC*C*6(Y0JI(N6(*ONO6(C*S7()8+(!=45:<:=4;(\0B=>0(<A0(
h>:<(=B(U>0/:D:4.>](#.45.<=>](Z4^G4?<:=4(#.](\0(EH.:/05(=B(Z4(
d4/.cBG/(20<.:40>(!.;0;6(C*S7()@+(Z//G;<>.<:H0(U>=J/0D;6(C*MI

ARTICLE 1675 .................................................................................. 418

!"##$%&'(hA04(<A0(R0F./(U0>:=5;(B=>(<A0(R0.;0(!.44=<(J0(
.H.:/05( =B6( C*N7( R.( `=//.6( Z4?I( HI( !E( _( U0/.F:.( [:>.]( EFG:/.>6(
KL(**QNQ*6(`G4I(8X6(8XX*6(C*NI(

ARTICLE 1676 .................................................................................. 418

xxxii
 !"##$%&'( )*+( LG/0;( :4( ?.;0( <A0( R0.;05( R.45( :;( -=/5( <=( .(
\G]0>6( C*O7( )8+( aG0>]'( #G;<( .( P>G?A.;0>( =B( P>=P0><]( >0;P0?<(
.(/0.;0(<A0>0=4j6(C*O7()@+(Z//G;<>.<:H0(U>=J/0D;6(C*O7()C+(-=D0(
2=?<>:40;(.45(!.;0;6(C8X7(U.4F(R:D(.45(K./H0g(HI(R=(-04F6(C8(
UA:/I(8N86(C8X7(aG:D;=4(HI(-G.>0g6(CQ(UA:/I(OX*6(C8*7()Q+(LG>./(
Leases, 421.

ARTICLE 1677 .................................................................................. 422

!"##$%&'(hA04(\G]0>(E(L0<>=(!.4($^0?<6(C887(2=>.5=(.45(
[:;<.(HI([0>:4.6(@C(UA:/I(8SC6(C88I

ARTICLE 1678 .................................................................................. 423

!"##$%&'()*+(L:FA<(=B(R0;;00(<=(d;0BG/(ZDP>=H0D04<;(.45(
">4.D04<./( $bP04;0;6( C8@7( )8+( $b.DP/0( c:<A( L0B0>04?0( <=(
d;0BG/( ZDP>=H0D04<6( C8@7( -./=4F.( HI( Y.>>./0;6( RVCMXNN6( `G/I(
*X6(*ON*6(C8C7()@+(LG/0(d450>(<A0("/5(R.c6(C8C7()C+(!=DD04<(
=B( <A0( !=50( !=DD:;;:=46( C8C7( )Q+( #0.4:4F( =B( ,K==5( Y.:<A1( :4(
<A0(E><:?/06(C8C7()S+(LG/0(:B(R0;;=>(L0BG;0;(<=(L0:DJG>;06(C8Q7(
`G.4:<=(EI(L=;.>:=(HI(!E(_(E/0^.45>=(!>Gg6(KL(NOQQC6(`G/I(*X6(
*OO86( C8Q7( )M+( \.>6( C8Q7( )N+( LG/0( :B( d;0BG/( ZDP>=H0D04<;( E>0(
%=<(-G:<.J/06(C8S7()O+(LG/0(:B(&A0>0(Z;(%=(&>G0(E??0;;:=46(C8S7(
)*X+( aG0>]6( C8M7( )**+( -<:PG/.<:=4( K:H:4F( R0;;=>( <A0( ZDP>=H0-
D04<;6( C8M7( )*8+( !=4?/G;:H0( U>0;GDP<:=46( C8N7( -P;I( 2.>:=( _(
#.<:/50(R.?.P(HI(`=GH0<("4F(R006(>0P>0;04<05(J](L0]4./5=(50(
/=;(-.4<=;6(KL(*C8*@*6(20?I(**6(8XX86(C8NI
ARTICLE 1679 .................................................................................. 428
!"##$%&'()*+(LG/0;(L0F.>5:4F(U/.?0(=B(U.]D04<(=B(<A0(L04<6(
C8N7( )8+( LG/0;( L0F.>5:4F( &:D0( =B( U.]D04<( =B( <A0( L04<6( C8O7(
)@+( U>0;?>:P<:=4( :4( d4/.cBG/( 20<.:40>6( C8O7( U0>.4( HI( U>0;:5-
:4F(`G5F06(KL(QM8QO6("?<I(*@6(*ON@6(C8O7( )C+( `G5FD04<( :4(.4(
$^0?<D04<( !.;06( C8O7( -./:4.;( HI( `G5F0( %.H.>>=6( KL( QX8OO6(
Nov. 29, 1983, 429.
Section 3 SPECIAL PROVISIONS FOR LEASES
OF RURAL LANDS ................................................... 430
ARTICLE 1680 .......................................................................... 430
!"##$%&'( )*+( $BB0?<( =B( -<0>:/:<]( =B( R.45( :4( !.;0( =B( LG>./(
R0.;06(C@X7()8+($BB0?<(=B(R"--(2G0(<=(.(Y=><G:<=G;($H04<6(C@X7(
)@+(Z//G;<>.<:H0(!.;06(C@*7(!G]GF.4(HI(2:g=46(MO(UA:/I(NX6(C@*7()C+(
ED=G4<(=B(L05G?<:=46(C@*7()Q+(U>=J/0D6(C@*7()S+(%=4VL05G?<:=4(
=B(L04<($H04(:B(\G;:40;;(hA0>0(R0;;00(Z;($4F.F05(Z4(\0?=D0;(
U==>6(C@87(R.FG4.(&.].J.;(\G;(!=I(HI(#.4.J.<6(RV8@QCS6(EGFI(
8O6(*OMC6(C@8I
ARTICLE 1681 .................................................................................. 432
!"##$%&'(R=;;(=B(Y>G:<;(EB<0>(-0P.>.<:=4(B>=D(-<./e6(L==<6(
or Trunk, 432.
ARTICLE 1682 .................................................................................. 433

xxxiii
 !"##$%&'( 2G>.<:=4( =B( LG>./( R0.;06( C@@7( Z<G>>./50( HI( K.>-
duno, 9 Phil. 605, 433.
ARTICLE 1683 .................................................................................. 433
!"##$%&'()*+(d;0(=B(<A0(U>0D:;0;(B=>(U>0P.>.<=>](R.J=>6(C@C7(
)8+("c40>;A:P(=B(U045:4F(!>=P;6(C@C7()@+($b.DP/0(=B(.(U>=P0>(
Action Under the Article, 434.
ARTICLE 1684 .................................................................................. 434
!"##$%&'( )*+( LG/0( B=>( R.45( &04.4?]( =4( -A.>0;6( C@C7( )8+(
#0.4:4F(=B(,&04.4<61(C@Q7()@+(hA04(.(&04.4<(h=>e;(B=>(2:BB0>-
ent Landowners, 435.
ARTICLE 1685 .................................................................................. 436
!"##$%&'()*+($^0?<D04<(=B(&04.4<(=4(-A.>0;6(C@S7(E5>:.4=(
ED.4<0( HI( !=G><( =B( EF>.>:.4( L0/.<:=4;( .45( -0>F:=( U.D.6( RV
8*8N@6("?<I(886(*OSS6(C@S7()8+(-=D0(2=?<>:40;6(C@M7(`=;=46(0<(./I(
HI(R.PGg6(RV*XMO@6(#.](@X6(*OQN6(C@N7(#.>:;<0/.6(0<(./I(HI(L0]0;(
.45([./0>:=6(RV**Q@M6("?<I(@*6(*OQN6(C@N7()@+(LG>./(R0.;0;6(CCX7(
L=/.45=(-:F>0(HI(!E(_(R:/:.(fI(K=4g./0;6(.;(?=V.5D:4:;<>.<>:b(
=B(<A0($;<.<0(=B(#.<:.;(fG;.]6(KL(*XOQSN6(EGFI(N6(8XX87(CCX7(
)C+(U0><:404<(U>=H:;:=4;(=4(EF>:?G/<G>./(R0;;00;6(CC@7()Q+(EF>:-
?G/<G>./(R0.;0A=/5(L0/.<:=4;A:P6(CC@7(#:/0;<=40(L0./<](_(!=I(HI(
!E6(KL(*@QOOO6(EP>I(*O6(8XX86(CC@7()S+(EF>:?G/<G>./(R0.;0A=/5(
L0/.<:=4(4=<($b<:4FG:;A05(J](20.<A(=>(Z4?.P.?:<](=B(<A0(U.><:0;6(
CCC7( 2:=4:;:.( RI( L0]0;( HI( L:?.>5=( RI( L0]0;6( R.g.>=( RI( L0]0;6(
%.>?:;=(RI(L0]0;(_(#.>?0/=(RI(L0]0;6(KL(*CX*SC6(-0PI(S6(8XX86(
CCC7()M+(EPP>=P>:.<0(#=50(=B(EPP0./(B>=D(20?:;:=4;(=B(-P0?:./(
EF>.>:.4(!=G><;6(CCS7(R.45(\.4e(=B(<A0(UA:/;I(HI(E>/040(50(R0=4(
_(\0>4.>5=(50(R0=46(KL(*C@8MQ6(#.>I(8X6(8XX@6(CCS7()N+(!.;06(
CCS7( L=5=/B=( E>g.F.( _( Y>.4?:;( E>g.F.( HI( -./H.?:=4( !=P:.;( _(
U>G504?:=(!./.45>:.6(KL(*Q8CXC6(#.>I(8N6(8XX@6(CCSI

Section 4 SPECIAL PROVISIONS FOR THE LEASE

OF URBAN LANDS ................................................... (( CCM
ARTICLE 1686 .................................................................................. ( CCM
!"##$%&'()*+(L0P.:>;(B=>(hA:?A(d>J.4(R0;;=>(:;(R:.J/06(CCM7(
)8+(LG/0(:4(!.;0(=B(2=GJ<6(CCNI
ARTICLE 1687 .................................................................................. 448
!"##$%&'( )*+( K040>./( LG/0;( :B( 2G>.<:=4( =B( R0.;0( Z;( %=<(
Y:b056( CCN7( !>:;=;<=D=( HI( !E6( RVC@C8M6( EGFI( @X6( *ON86( CCO7(
L=b.;(HI(E/?.4<.>.6(RVCOSQO6(#.>I(8Q6(*ON86(CCO7()8+(hA04(E><I(
*SNM( EPP/:0;6( CQX7( 2:H:4.F>.?:.( EF>=V!=DD0>?:./6( Z4?I( HI( !E(
.45(LG34=(Y0>4.450g6(RVCM@QX6(EP>I(8*6(*ON*6(CQX7((R:F.].(-I(
-.4<=;(HI(!E(_(UA:/I(K0>:.<>:?;(Y=G45.<:=46(Z4?I6(KL(*@QCN*6(
"?<I( 8@6( 8XX*6( CQX7( )@+( hA04( E><I( *SNM( h://( %=<( EPP/]6( CQ*7(
L:H0>.( HI( Y/=>045=6( KL( SXXSS6( `G/I( @*6( *ONS6( CQ87( )C+( Y:b:4F(
=B(<A0(R=4F0>(U0>:=5()E;(.(-=><(=B(L0c.>5+6(CQ@7(2:H:4.F>.?:.(
EF>=V!=DD0>?:./6(Z4?I(HI(!E(.45(LG34=(Y0>4.450g6(RVCM@QX6(

xxxiv
 EP>I(8*6(*ON*6(CQ@7(KG:.4F(HI(-.D.4=6(KL(QXQX*6(EP>I(886(*OO*6(
CQ@7(R.(`=//.6(Z4?I(HI(!E(_(U0/.F:.([:>.](50(EFG:/.>6(KL(**QNQ*6(
`G4I(8X6(8XX*6(CQC7($G/=F:.(,$GFG:1(R=(!AG.(HI(!E6(0<(./I6(KL(
*CXNNS6( EP>I( *O6( 8XX*6( CQC7( E?.;:=( HI( !=>P=>.?:=4( 50( /=;( UIUI(
2=D:4:?=;( 50( Y:/:P:4.;6( *XX( UA:/I( Q8@6( CQQ7( YI-I( 2:H:4.F>.?:.(
EF>=V!=DD0>?:./6(Z4?I(HI(!E(.45(LG34=(Y0>4.450g6(RVCM@QX6(
EP>I(8*6(*ON*6(CQS7(2:H:4.F>.?:.(EF>=V!=DD0>?:./6(Z4?I(HI(!E(
.45( LG34=( Y0>4.450g6( RVCM@QX6( EP>I( 8*6( *ON*6( CQM7( 90:>;( =B(
#.4G0/( &I( -G:?=( HI( !E6( KL( *8XS*Q6( `.4I( 8*6( *OOM6( MN( -!E2(
*QO6(CQMI
ARTICLE 1688 .................................................................................. 458
!"##$%&'( 2G>.<:=4( =B( R0.;0( =B( YG>4:<G>0( :B( U>0D:;0;( E>0(
Also Leased, 458.

CHAPTER 3 WORK AND LABOR ................................................... 459

Section 1 HOUSEHOLD SERVICE ................................................. 459

ARTICLE 1689 .................................................................................. 459
!"##$%&'( )*+( -?=P0( =B( 9=G;0A=/5( -0>H:?06( CQO7( )8+( -0>H:?0(
h:<A=G<(!=DP04;.<:=46(CQOI
ARTICLE 1690 .................................................................................. 459
!"##$%&'( )*+( #05:?./( E<<045.4?06( CQO7( )8+( 90.5( =B( <A0(
Family, 460.
ARTICLE 1691 .................................................................................. 460
!"##$%&'($5G?.<:=4(=B(9=G;0(90/P0>6(CSXI
ARTICLE 1692 .................................................................................. 460
!"##$%&'( )*+( 2G>.<:=4( =B( !=4<>.?<( B=>( 9=G;0A=/5( -0>H:?06(
CSX7()8+(Y=>D./:<:0;(=B(<A0(!=4<>.?<6(CS*I
ARTICLE 1693 .................................................................................. 461
!"##$%&'(!/=<A:4F(=B(9=G;0(90/P0>6(CS*I
ARTICLE 1694 ................................................................................. 461
!"##$%&'(&>0.<D04<(=B(<A0(9=G;0(90/P0>6(CS*I
ARTICLE 1695 .................................................................................. 461
!"##$%&'( )*+( &04( 9=G>;( h=>e( 2.:/]6( CS87( )8+( E55:<:=4./(
!=DP04;.<:=46( CS87( )@+( !=DPG<.<:=4( =B( U0>:=56( CS87( )C+( LG/0(
for Yayas6(CS87()Q+([.?.<:=4(B=>(90/P0>6(CS8I
ARTICLE 1696 .................................................................................. 463
!"##$%&'(LG/0(:B(90/P0>(2:0;6(CS@I
ARTICLE 1697 .................................................................................. 463
!"##$%&'( &0>D:4.<:=4( =B( <A0( !=4<>.?<( :B( U0>:=5( :;( Y:b056(
463.

xxxv
 ARTICLE 1698 .................................................................................. 463
!"##$%&'(LG/0(:B(&0>D(:;(%=<(Y:b056(CSCI
ARTICLE 1699 .................................................................................. 464
!"##$%&'( h>:<<04( !0><:3?.<:=4( J]( 90.5( =B( Y.D:/]( =>( J](
Employer, 464.
Section 2 CONTRACT OF LABOR ................................................. 464

Z%&L"2d!&"Lf( !"##$%&'( !=DD04<( =B( <A0( !=50( !=D-

D:;;:=46(CSC7(%.<:=4./(9=G;:4F(!=>P=>.<:=4(HI(`G?=6(RVSC@*@6(
`.4I(*M6(*ONQ6(CSQI
ARTICLE 1700 .................................................................................. 465
!"##$%&'()*+(,!=4<>.?<(=B(R.J=>1(2034056(CSQ7()8+($;;04<:./(
!A.>.?<0>:;<:?;( =B( <A0( !=4<>.?<( =B( R.J=>6( CSQ7( U.4( ED0>:?.4(
h=>/5(E:>c.];6(Z4?I(HI(&=D.;(#I($;P:>:<G(.45(!=G><(=B(EPP0./;6(
RV@QCX*6(`.4I(8X6(*OMS6(CSS7()@+(R.J=>(d4:=4(=>(">F.4:g.<:=46(
CSM7( #=4<.40>( HI( %.<:=4./( R.J=>( L0/.<:=4;( !=DD:;;:=46( KL(
QQN*C6(Y0JI(8*6(*ON@6(CSM7()C+(,!=//0?<:H0(\.>F.:4:4F1(2034056(
CSM7( )Q+( ,-<>:e01( .45( ,R=?e=G<1( 2:;<:4FG:;A056( CSM7( )S+( hA04(
.( -<>:e0( :;( R.cBG/6( CSN7( UA:/:PP:40( #.>:40( "B3?0>;( KG:/5( HI(
!=DP.m:.(#.>:<:D.6(0<(./I6(RV8XSS86(#.>I(*O6(*OSN6(CSN7(d4:<05(
!#!(&0b<:/0(h=>e0>;(d4:=4(HI("P/06(KL(S8X@M6(`.4I(8M6(*ON@6(
CSO7()M+(U.](=B(R.J=>0>;(2G>:4F(<A0(-<>:e06(CSO7(UA:/:PP:40(E;-
;=?:.<:=4(=B(Y>00(R.J=>(d4:=4;(HI(!=G><(=B(Y:>;<(Z4;<.4?06(KL(
COQNX6( `.4I( *M6( *ON@6( CMX7( )N+( ,!/=;05( -A=P1( .;( 2:;<:4FG:;A05(
B>=D(.4(,"P04(-A=P1(.45(.(,!/=;05(d4:=4(-A=P(c:<A("P04(d4-
:=416( CMX7( )O+( !.;06( CM*7( [:;.].4( &>.4;P=><.<:=4( !=I( HI( U.J/=(
`.H.6(O@(UA:/I(OS86(CM*7()*X+(%.<:=4./(R.J=>(L0/.<:=4;(!=DD:-
;:=4( )%RL!+6( CM*7( )**+( L0FG/.>( $DP/=]D04<6( CM*7( U.FG:=( HI(
%RL!( _( #0<>=D05:.( &:D0;( !=>PI6( KL( *CMN*S6( #.]( O6( 8XX@6(
CM*7( )*8+( #G;/:D( 9=/:5.]( U.]6( CM@7( -.4( #:FG0/( !=>PI( HI( !E6(
KL(*CMMQ6(`.4I(@X6(8XX86(CM@7()*@+([=/G4<.>](E>J:<>.<:=46(CMC7(
d4:=4(=B(%0;</o(h=>e0>;(!.F.].4(50(">=(Y.?<=>]()d%h!Y+(HI(
%0;</o(UA:/;I6(Z4?I6(KL(*CN@X@6("?<I(*M6(8XX86(CMCI(
ARTICLE 1701 .................................................................................. ( CMC
!"##$%&'()*+(U>=<0?<:=4(B=>(!.P:<./6(R.J=>6(.45(<A0(UGJ/:?6(
CMC7( )8+( $b.DP/0;( =B( ,d4B.:>( R.J=>( U>.?<:?0;1( )\EL+6( CMQ7( )@+(
-=D0(L:FA<;(U.><:?G/.>/](EBB0?<:4F(Y:/:P:4=(h=D04(R.J=>0>;(=>(
$DP/=]00;6(CMS7()C+(L0D05]6(CMS7(T.P:;.4.4()T#U+(HI(&>.^.4=6(
RVS8@XS6(`.4I(8*6(*ONQ6(CMS7()Q+(Z//0F./(L0?>G:<D04<6(CMS7(U0=P/0(
HI(E4F0/0;6(KL(*@8@MS6(EP>I(**6(8XX86(CMS7()S+($/0D04<;(U>0;04<(
:4(.4($DP/=]0>V$DP/=]00(L0/.<:=4;A:P6(CMM7()M+(aG:<?/.:D;(.>0(
!=4<>.?<;(=B(h.:H0>6(CMN7(#!($4F:400>:4F(HI(!E6(KL(*XCXCM6(
EP>I(@6(8XX86(CMNI
ARTICLE 1702 .................................................................................. ( CMN
!"##$%&'(LG/0(:4(!.;0(=B(2=GJ<6(CMNI

xxxvi
ARTICLE 1703 .................................................................................. ( CMO
!"##$%&'(Z4H=/G4<.>](-0>H:<G50(U>=A:J:<056(CMOI
ARTICLE 1704 .................................................................................. ( CMO
!"##$%&'( )*+( Y=>D.<:=4( =B( \.>F.:4:4F( d4:<;6( CMO7( K0=>F0(
.45(U0<0>(R:40;(HI(E;;=?:.<05(R.J=>(d4:=4;6(RVQ*SX86(`.4I(*M6(
*ONQ6(CMO7()8+(Y.?<=>;(hA:?A(#.](\0(!=4;:50>05(J](<A0(!=G><(
<=( 20<0>D:40( hA0<A0>( =>( %=<( .( \.>F.:4:4F( d4:<( 9.;( \004(
U>=P0>/]( Y=>D056( CNX7( )@+( !0><:3?.<:=4( U>=?005:4F;6( CNX7( )C+(
!.;06(CN*7(-.D.A.4F(HI(%=>:0/6(RVQSQNN6(`.4I(*M6(*ONQ6(CN*I
ARTICLE 1705 .................................................................................. 481
!"##$%&'( )*+( U.]D04<( =B( h.F0;( :4( R0F./( !G>>04?]6( CN*7(
)8+( LG/0( L0( K=H0>4D04<( $DP/=]00;6( CN*7( )@+( `G>:;5:?<:=4( =B(
R.J=>(E>J:<0>;(L0(h.F0;6($<?I6(CN*7()C+(!.;0;6(CN87(!=4F;=4(HI(
%RL!6(KL(**C8QX6(EP>I(Q6(*OOQ6(SX(-!E2(@8C6(CN87(h://:4F<=4(
Z4H0;<D04<(_(#.4GB.?<G>:4F(!=>PI(HI(&>.^.4=6(KL(**CSON6(`G/I(
@6(*OOQ6(S8(-!E2(8NC6(CN87(#0<>=(&>.4;:<(">F.4:g.<:=46(Z4?I(HI(
%RL!6(KL(**SXXN6(`G/I(**6(*OOQ6(S8(-!E2(CMM6(CN8I
ARTICLE 1706 .................................................................................. 483
!"##$%&'(h:<AA=/5:4F(=B(h.F0;6(CN@I
ARTICLE 1707 .................................................................................. 483
!"##$%&'( )*+( h.F0( R:046( CN@7( )8+( aG0>]6( CN@7( )@+( &0>D;(
2034056(CNCI
ARTICLE 1708 .................................................................................. 484
!"##$%&'()*+(K040>.//]6(h.F0;(E>0(%=<(-GJ^0?<(<=($b0?G<:=46(
CNC7()8+(-./.>:0;(=B(K=H0>4D04<($DP/=]00;6(CNCI
ARTICLE 1709 .................................................................................. 485
!"##$%&'(%=(-0:gG>0(=>(L0<04<:=4(J]($DP/=]0>6(CNQI
ARTICLE 1710 .................................................................................. 485
!"##$%&'()*+(2:;D:;;./(=B(R.J=>0>;6(CNQ7(E/g=;.(HI(%.<:=4./(
R.J=>( L0/.<:=4;( !=DD:;;:=46( KL( QX8OS6( Y0JI( *C6( *ON@6( CNS7(
%:?.4=>( #I( \./<.g.>( HI( -.4( #:FG0/( \>0c0>]6( RV8@XMS6( Y0JI(
8M6(*OSO6(CNS7(U=/]D05:?(K040>./(9=;P:<./(HI(%RL!6(RVSC*OX6(
`.4I( @*6( *ONQ6( CNM7( [://.5=/:5( HI( Z4?:=4F6( KL( Q8@SC6( #.>I( 8Q6(
*ON@6(CNM7(\G;<://=;(HI(Z4?:=4F6(KL(CQ@OS6(`.4I(8M6(*ON@6(CNM7(
Y$#1;($/0F.4?0(R=5F:4F(9=G;0(HI(#G>://=6(KL(**MCC8VC@6(`.4I(
**6(*OOQ6(QN(-!E2(MO6(CNM7(#.>?0/=(HI(%RL!6(KL(**@CQN6(`.4I(
@*6(*OOQ6(QN(-!E2(SC@6(CNM7(K040>./(&0b<:/06(Z4?I(HI(%RL!6(KL(
*X8OSO6( EP>I( C6( *OOQ6( SX( -!E2( 8OS6( CNN7( Unicraft Industries
International Corp., etc. v. CA, etc., KL 134903, Jan. 16, 2002,
CNN7()8+(-=D0(`G;<:3.J/0(!.G;0;(B=>(2:;D:;;./6(CNN7(-GD.45:(HI(
R0=F.>5=6(RVSMS@Q6(`.4I(*M6(*ONQ6(CNO7()@+(L0:4;<.<0D04<(U>=-
H:505(&A0>0(:;(%=(R.?A0;6(CNO7()C+(\EL6(COX7()Q+(d4B.:>(R.J=>(
Practice Committed on Agricultural Laborers, 491.

xxxvii
 ARTICLE 1711 .................................................................................. 491
!"##$%&'(20.<A(=>(Z4^G>:0;(<=(R.J=>0>6(CO*I
ARTICLE 1712 .................................................................................. 491
!"##$%&'()*+(\.?eF>=G45(=B(!=DP04;.<:=4(R.c;(B=>(20.<A(
=>( Z4^G>:0;6( CO87( )8+( LG/0;( L0( $DP/=]0>1;( R:.J:/:<]6( CO87( )@+(
!.;0;6(CO@7(EH045.m=(HI($DP/=]001;(!=DP04;.<:=4(!=DD:;;:=46(
KL(CNQO@6(EP>I(@X6(*ONX6(CO@7(!.]?=(HI($!!6(KL(RVCOMQQ6(EGFI(
8*6(*ONX6(COC7(E^0>=(HI($!!6(KL(RVCCQOM6(20?I(8O6(*ONX6(COC7(
#.45.P.<(HI($!!6(*O*(UA:/I(CM()*ON*+6(COC7(%0D.>:.(HI($!!6(
KL(RVQMNNO6("?<I(8N6(*ONM6(COC7(20(R0=4(HI($!!6(KL(RVCSCMC6(
%=HI(*C6(*ONN6(COQ7()C+(L0<:>0D04<(\0403<;6(COQ7(K.D=F.D=(HI(
U%"!(-A:PP:4F(_(&>.4;P=><(!=>PI6(KL(*C*MXM6(#.](M6(8XX86(
COQ7(%=>D.(">.<0(HI(!E6($!!6(---()#.4:/.(\.](-P:44:4F(#://;6(
Z4?I+6(KL(*@8MS*6(#.>I(8S6(8XX@6(COQI

Section 3 CONTRACT FOR A PIECE OF WORK ....................... 499

ARTICLE 1713 .................................................................................. 499
!"##$%&'( )*+( ,!=4<>.?<( B=>( .( U:0?0( =B( h=>e1( 2:;<:4FG:;A05(
B>=D( ,R0.;0( =B( -0>H:?0;16( QXX7( )8+( $/0D04<;( =B( <A0( !=4<>.?<( =B(
h=>e6(QXX7()@+(,!=4<>.?<=>1(2034056(QXX7()C+(&0;<6(QXX7()Q+(hA.<(
!=4<>.?<=>(#.](YG>4:;A6(QXX7()S+(!=4<>.?<(B=>(.(U:0?0(=B(h=>e(
2:;<:4FG:;A05(B>=D(<A0(!=4<>.?<(=B(-./06(QX*7()M+(,U.e].=1(E>-
>.4F0D04<6( QX*7( 2:4F?=4F( HI( KG:4F=4.6( KL( MSXCC6( `G4I( 8N6(
1988, 501.
ARTICLE 1714 .................................................................................. 502
!"##$%&'( 2G<:0;( =B( !=4<>.?<=>( hA=( YG>4:;A0;( \=<A( h=>e(
.45(<A0(#.<0>:./6(QX8I
ARTICLE 1715 .................................................................................. 502
!"##$%&'(L0D05](=B($DP/=]0>(:4(!.;0(=B(2$Y$!&-6(QX@I
ARTICLE 1716 .................................................................................. 503
!"##$%&'( EF>00D04<( h.:H:4F( =>( R:D:<:4F( !=4<>.?<=>1;(
Liability, 503.
ARTICLE 1717 .................................................................................. 503
!"##$%&'()*+(L:;e(=B(R=;;(:B(!=4<>.?<=>(YG>4:;A05(E/;=(<A0(
#.<0>:./6( QXC7( )8+( Y=><G:<=G;( $H04<( =>( d4.H=:5.J/0( E??:504<6(
504.
ARTICLE 1718 .................................................................................. 504
!"##$%&'( )*+( E><;I( *M*N( .45( *M*M( 2:;<:4FG:;A05( )L0( L:;e(
=B(R=;;+6(QXQ7()8+(U>=J/0D6(QXQI
ARTICLE 1719 .................................................................................. 505
!"##$%&'()*+($BB0?<(hA04($DP/=]0>(E??0P<;(<A0(h=>e6(QXS7(
)8+( Y:/:4F( =B( .( !=DP/.:4<6( QXS7( )@+( Z4;P0?<:=4( =B( .( !=4?>0<0(
h.//6(QXSI

xxxviii
ARTICLE 1720 .................................................................................. 506
!"##$%&'( )*+( U/.?0( =B( U.]D04<6( QXS7( K=4g./0;( HI( !=G><( =B(
EPP0./;6(KL(QQOC@6(-0PI(8*6(*ON@6(QXM7()8+(EPP/:?.J:/:<](=B(E>-
<:?/0(<=(U.><:./(20/:H0>]6(QXM7(U.;.](!:<](K=H0>4D04<(HI(!YZ6(
#.4:/.6(RV@8*S86(-0PI(8N6(*ONC6(QXMI
ARTICLE 1721 .................................................................................. ( QXM
!"##$%&'(20B.G/<(=B(<A0($DP/=]0>6(QXMI
ARTICLE 1722 .................................................................................. 508

!"##$%&'()*+(%=4V?=DP/0<:=4(2G0(<=(20B0?<:H0(#.<0>:./;(=>(
">50>;(B>=D($DP/=]0>6(QXN7()8+(LG/0;(=B(U>=B0;;:=4./(">F.4:-
zations, 508.

ARTICLE 1723 .................................................................................. 508

!"##$%&'( )*+( R:.J:/:<]( B=>( !=//.P;0( =B( .( \G:/5:4F6( QXO7( )8+(

L0.;=4(B=>(<A0(R:.J:/:<]6(QXO7()@+(!=//.P;0(=B(.(\G:/5:4F(2G>:4F(
.4($.><AiG.e06(QXOI
ARTICLE 1724 .................................................................................. 510
!"##$%&'()*+(EPP/:?.J:/:<](=B(<A0(E><:?/0(L0(-<>G?<G>06(Q*X7(
%.eP:/(.45(-=4;(HI(!E6(KL(CMNQ*6("?<I(@6(*ONS6(Q*X7()8+(K04-
0>./(LG/06(Q*X7()@+($b?0P<:=46(Q*X7(L=]./(R:40;6(Z4?I(HI(!E6(KL(
8M8@O6(EGFI(8X6(*ONS6(Q**7(E>04.;6(0<(./I(HI(!E(.45(!>Gg6(KL(
QSQ8C6( `.4I( 8M6( *ONO6( Q**7( )C+( UG>P=;0( =B( L0iG:>:4F( h>:<<04(
Authorization, 511.
ARTICLE 1725 .................................................................................. 511
!"##$%&'( )*+( h:<A5>.c./( J]( "c40>6( Q*87( )8+( $BB0?<( =B( E5-
vance Payment, 512.
ARTICLE 1726 .................................................................................. 512
!"##$%&'( Z4;<.4?0;( hA04( !=4<>.?<( !.4( \0( L0;?:45056(
513.
ARTICLE 1727 .................................................................................. 513
!"##$%&'(!=4<>.?<=>1;(L0;P=4;:J:/:<](B=>(9:;("c4($DP/=]-
ees, 513.
ARTICLE 1728 .................................................................................. 514
!"##$%&'($BB0?<(=B(20.<A(=>(UA];:?./(Z4^G>:0;6(Q*CI(
ARTICLE 1729 .................................................................................. 514
!"##$%&'( )*+( -GJ;:5:.>]( R:.J:/:<]( =B( "c40>;( <=( R.J=>0>;(
.45(#.<0>:./D046(Q*C7()8+(-P0?:./(R.c(L0F.>5:4F(!=4<>.?<=>1;(
RE\"L( \"%26( Q*Q7( E?<( @OQO6( Q*Q7( )@+( L0D05:0;( d450>( E?<(
@SNN6(Q*S7(%0c(#.4:/.(RGDJ0>(!=I(HI(L0PGJ/:?6(RV*C8CN6(EP>I(
28, 1960, 516.

xxxix
 ARTICLE 1730 .................................................................................. ( Q*M
!"##$%&'()*+(-.<:;B.?<=>](!=DP/0<:=4(=B(<A0(h=>e6(Q*M7()8+(
$BB0?<( =B( !0><:3?.<:=4( J]( "c40>1;( E>?A:<0?<6( Q*M7( )@+( $BB0?<( :B(
&A0>0(Z;(%=(-<:PG/.<:=4(L0iG:>:4F(EPP>=H./(J](.(&A:>5(U0>;=46(
Q*MI
ARTICLE 1731 .................................................................................. ( Q*M
!"##$%&'( )*+( U=;;0;;=>]( R:04( =B( h=>e0>6( Q*M7( )8+( -=D0(
Doctrines, 518.

Section 4 COMMON CARRIERS ..................................................... 518

Subsection 1 GENERAL PROVISIONS ......................................... 518
Z%&L"2d!&"Lf( !"##$%&'( )*+( E( ,!.>>:0>1( 2034056( Q*N7(
`.P.4( E:>/:40;( HI( !E6( 0<( ./I6( KL( **NSSC6( EGFI( M6( *OON6( Q*O7(
)8+(U>:H.<0(!.>>:0>(2:;<:4FG:;A05(B>=D(!=DD=4(!.>>:0>6(Q*O7(
Sarkies Tour Philippines v. Intermediate Appellate Court,
KL( S@M8@6( -0PI( 86( *ON@6( Q*O7( 9=D0( Z4;G>.4?0( !=DP.4]( HI(
American Steamship Agencies, Inc., et al., L-25599, Apr. 4,
*OSN6(Q8X7()@+(R:.J:/:<](B=>(2.D.F0;(:B(!=DD=4(!.>>:.F0(9.;(
\004(&>.4;B0>>056(Q8X7(U0>0g(HI(KG<:0>>0g6(Q@(-!LE(*CO6(Q8X7(
(4) Prescription, 520.
ARTICLE 1732 .................................................................................. 521
!"##$%&'()*+(&0;<(hA0<A0>(!.>>:0>(Z;(!=DD=4(=>(U>:H.<06(
Q8*7()8+(2:;<:4?<:=4(\0<c004(.(,!=DD=4(=>(UGJ/:?(!.>>:0>1(.45(
.( ,U>:H.<0( =>( -P0?:./( !.>>:0>16( Q8*7( UA:/I( ED0>:?.4( K040>./(
Z4;G>.4?0(!=I(HI(UT-(-A:PP:4F(!=I6(KL(*COX@N6(EP>I(O6(8XX@6(
Q8*7()@+($b.DP/0;6(Q887()C+(!=4<>.?<(=B(&=c.F06(Q8@7()Q+(-=D0(
!.;0;6(Q8@7(20(KGgD.4(HI(!E(.45(!045.m.6(RVCMN886(20?I(886(
*ONN6(Q8@7(!AG.(f0e(9=4F(HI(ZE!6(0<(./I6(KL(MCN**6(-0PI(@X6(
*ONN6( Q8@7( YKd( Z4;G>.4?0( !=>PI( HI( KIUI( -.>D:04<=( &>G?e:4F(
!=>PI(_(R.DJ0><(#I($>=/0;6(KL(*C*O*X6(EGFI(S6(8XX86(Q8C7()S+(
Y:45:4F;(=B(Y.?<6(Q8S7(UA:/I(ED0>:?.4(K040>./(Z4;G>.4?0(!=I(HI(
UT-(-A:PP:4F(!=I6(KL(*COX@N6(EP>I(O6(8XX@6(Q8SI
ARTICLE 1733 .................................................................................. ( Q8M
!"##$%&'( $b<>.=>5:4.>]( 2:/:F04?06( Q8M7( WG/G0<.( HI( U.4(
ED0>:?.4( h=>/5( E:>c.];6( Z4?I6( C@( -!LE( @OM6( Q8N7( 2.H:/.( HI(
UA:/I(E:>(R:40;6(CO(-!LE(COM6(Q8N7(-.D.>(#:4:4F(!=I(HI(%=>-
50G<0?A0>( R/=]56( RV8NNM@6( "?<I( 8@6( *ONC6( Q8N7( $.;<0>4( -A:P-
P:4F( /:40;6( Z4?I( HI( !E6( KL( OC*Q*6( EP>I( @X6( *OO*6( Q8N7( \0/F:.4(
"H0>;0.;( !A.><0>:4F( _( -A:PP:4F( %I[I( .45( `.>5:40( 2.H:0;(
&>.4;P=><(-0>H:?0;6(Z4?I(HI(UA:/I(Y:>;<(Z4;G>.4?0(!=I6(Z4?I6(KL(
143133, Jun. 5, 2002, 530.
Subsection 2 VIGILANCE OVER GOODS .................................... 532
ARTICLE 1734 .................................................................................. 532
!"##$%&'( )*+( hA04( !=DD=4( !.>>:0>( Z;( %=<( R:.J/06( Q@87( (
UA:/I(ED0>:?.4(K040>./(Z4;G>.4?0(!=I(HI(UT-(-A:PP:4F(!=D-

xl
 P.4]6(KL(*COX@N6(EP>I(O6(8XX@6(Q@87()8+(\G>504(=B(U>==B6(Q@@7(
)@+(!=4?0P<(=B(,UGJ/:?($40D]16(Q@C7()C+(E?<(=>("D:;;:=46(Q@C7()Q+(
Order or Act of Competent Public Authority, 534.
ARTICLE 1735 .................................................................................. 534
!"##$%&'()*+(U>0;GDP<:=4(=B(Y.G/<(=B(%0F/:F04?06(Q@C7(UA:/I(
ED0>:?.4(K040>./(Z4;G>.4?0(!=I(HI(UT-(-A:PP:4F(!=DP.4]6(KL(
*COX@N6(EP>I(O6(8XX@6(Q@Q7()8+(20B04;0(d450>(E><I(*M@Q6(Q@QI
ARTICLE 1736 .................................................................................. 535
!"##$%&'()*+(L0.;=4(B=>(<A0($b<>.=>5:4.>](L0;P=4;:J:/:<](=B(
<A0(!=DD=4(!.>>:0>6(Q@S7()8+(hA04(R:.J:/:<](#.](\0(R:D:<056(
Q@S7()@+(#:;50/:H0>]6(Q@S7(E4F(HI(!=DP.4:.(#.>:<:D.6(RV@XNXQ6(
Dec. 26, 1984, 536.
ARTICLE 1737 .................................................................................. 536
!"##$%&'()*+(!=4<:4G:4F(R:.J:/:<]6(Q@M7()8+($b?0P<:=46(Q@MI
ARTICLE 1738 .................................................................................. ( Q@M
!"##$%&'(R:.J:/:<](hA:/0(:4(<A0(h.>0A=G;06(Q@MI
ARTICLE 1739 .................................................................................. ( Q@M
!"##$%&'( %.<G>./( 2:;.;<0>( \0:4F( <A0( !.G;06( Q@N7( UA:/I(
ED0>:?.4(K040>./(Z4;G>.4?0(!=I6(Z4?I(HI(#KK(#.>:40(-0>H:?0;6(
Z4?I(_(2=>=<0=(K.0>/.46(KL(*@QSCQ6(#.>I(N6(8XX86(Q@NI
ARTICLE 1740 .................................................................................. 540
!"##$%&'( )*+( $BB0?<( =B( 20B.G/<( ?.G;05( J]( %0F/:F04?06( QC*7(
\EL6(QC*I
ARTICLE 1741 .................................................................................. 541
!"##$%&'(!=4<>:JG<=>](%0F/:F04?0(=B(<A0(-A:PP0>(=>("c40>6(
541.
ARTICLE 1742 .................................................................................. 541
!"##$%&'(ZB(!.G;0(\0(<A0(!A.>.?<0>(=B(<A0(K==5;(=>(Y.G/<](
Packing, 542.
ARTICLE 1743 .................................................................................. 542
!"##$%&'(-0:gG>0(=>(20;<>G?<:=4(J](">50>(=B(UGJ/:?(EG<A=>-
ity, 542.
ARTICLE 1744 .................................................................................. 542
!"##$%&'(2:/:F04?0(R0;;(&A.4($b<>.=>5:4.>]6(QC8I
ARTICLE 1745 .................................................................................. 543
!"##$%&'( [=:5( -<:PG/.<:=4;6( QC@7( U05>=( 50( KGgD.4( HI( !E(
.45($>40;<=(!045.m.6(RVCMN886(20?I(886(*ONN6(QCCI

xli
 ARTICLE 1746 .................................................................................. 545
!"##$%&'(hA04(-<:PG/.<:=4(Z;([:<:.<05(J](&A>0.<(=>(d45G0(
Z4pG04?06(QCQI
ARTICLE 1747 ................................................................................. 545
!"##$%&'($BB0?<(=B(20B.G/<(=>(!A.4F0(=B(L=G<06(QCQI
ARTICLE 1748 ................................................................................. 545
!"##$%&'($BB0?<(=B(-<>:e0;(=>(L:=<;6(QCQI
ARTICLE 1749 ................................................................................. 546
!"##$%&'( )*+( -<:PG/.<:=4( R:D:<:4F( !.>>:0>1;( R:.J:/:<]6( QCS7(
)8+(LG/0(:4(!.>>:.F0(=B(K==5;(J](-0.(E?<6(QCS7()@+(!.;0;6(QCS7(
\0/F:.4( "H0>;0.;( !A.><0>:4F( ( _( -A:PP:4F( %I[I( HI( UA:/I( Y:>;<(
Z4;<.4?0(!=I6(KL(*C@*@@6(`G4I(Q6(8XX86(QCS7(h.//0D(UA:/;I(-A:P-
P:4F6(Z4?I(_(-0.?=.;<(#.>:<:D0(!=>PI(HI(U>G504<:./(KG.>.4<00(
_(Z4;G>.4?06(Z4?I6(.45(!E6(KL(*Q8*QN6(Y0JI(M6(8XX@6(QCMI
ARTICLE 1750 .................................................................................. 549
!"##$%&'(Y:b:4F(=B(-GD(&A.<(#.](\0(L0?=H0>056(QQXI
ARTICLE 1751 .................................................................................. 550
!"##$%&'($BB0?<(=B(R.?e(=B(!=DP0<:<:=46(QQXI
ARTICLE 1752 .................................................................................. 550
!"##$%&'(U>0;GDP<:=4(=B(%0F/:F04?0($H04(:B(&A0>0(Z;(EF>00-
ment on Limited Liability, 550.
ARTICLE 1753 .................................................................................. 550
!"##$%&'()*+(!=4p:?<;(LG/0(nn(R.c(=B(20;<:4.<:=46(QQX7()8+(
!.;0;6(QQ*7(-0.VR.45(-0>H:?06(Z4?I(HI(ZE!6(KL(MQ**N6(EGFI(@*6(
*ONM6(QQ*I
ARTICLE 1754 .................................................................................. 553
!"##$%&'( )*+( LG/0;( .;( <=( \.FF.F06( QQ@7( )8+( $BB0?<( =B( %=4V
U.]D04<( =B( \.FF.F0( Y.>06( QQ@7( )@+( Y>0:FA<( &:?e0<;6( QQ@7( )C+(
!.;06(QQ@7(!=DP.4:.(#.>:<:D.(HI(R:D;=46(KL(8M*@C6(Y0JI(8N6(
1986, 553.

Subsection 3 SAFETY OF PASSENGERS ..................................... 554

ARTICLE 1755 .................................................................................. 554
!"##$%&'()*+(L0.;=4(B=>(,d<D=;<(2:/:F04?01(:4(<A0(!.>>:.F0(
=B( U.;;04F0>;6( QQC7( 2.H:/.( HI( UA:/:PP:40( E:>( R:40;6( CO( -!LE(
COM6( QQQ7( UA:/:PP:40( E:>( R:40;( HI( !=G><( =B( EPP0./;6( RVCSQQN6(
`G/I( @*6( *ON*6( QQQ7( )8+( U0>B0?<:=4( =B( <A0( !=4<>.?<( =B( !=DD=4(
!.>>:.F0(=B(U.;;04F0>;6(QQQ7()@+(U.><:0;(<=(<A0(!=4<>.?<6(QQS7(
U0>0g(HI(KG<:0>>0g6(Q@(-!LE(*CO6(QQM7()C+(U.;;04F0>;6(QQM7()Q+(
%=4VP.;;04F0>;6(QQN7()S+(\G>504(=B(U>==B(.45(U>=?005:4F6(QQO7(

xlii
 )M+(U>=?05G>./(&0?A4:iG0;6(QSX7()N+(aG0>]6(QSX7()O+(!.;06(QS87(
RL&E(_(L=5=/B=(L=D.4(HI(#.>^=>:0(%.H:5.56(90:>;(=B(<A0(/.<0(
%:?.4=>(%.H:5.5(_(U>G504<(-0?G>:<](EF04?]6(KL(*CQNXC6(Y0JI(
6, 2003, 562.
ARTICLE 1756 .................................................................................. 562
!"##$%&'( )*+( U>0;GDP<:=4( =B( %0F/:F04?06( QS87( RL&E( HI(
%.H:5.56(KL(*CQNXC6(Y0JI(S6(8XX@6(QS87()8+(9=c(U>0;GDP<:=4(:;(
L0JG<<056(QS@7()@+(R:.J:/:<](=B(!.>>:0>6(QS@7()C+(L0?e/0;;40;;(=4(
<A0(U.><(=B(<A0(2>:H0>6(QS@7()Q+(L0?e/0;;40;;(=4(<A0(U.><(=B(<A0(
"c40>(=>("P0>.<=>(9:D;0/B6(QSC7()S+(%=(L0?e/0;;40;;6(QSQI
ARTICLE 1757 .................................................................................. 566
!"##$%&'($BB0?<(=B(!=4<>.>](-<:PG/.<:=46(QSSI
ARTICLE 1758 .................................................................................. 566
!"##$%&'( )*+( $BB0?<( =B( K>.<G:<=G;( !.>>:.F0( =>( !.>>:.F0( .<(
.( L05G?05( L.<06( QSS7( )8+( $BB0?<( =B( L05G?<:=4( =B( Y.>06( QSM7( )@+(
-=D0(LG/0;(>0(%=4VP.]:4F(U0>;=4;6(QSM7()C+(Z4H:<05(KG0;<;(=>(
E??=DD=5.<:=4(U.;;04F0>;6(QSMI
ARTICLE 1759 .................................................................................. 568
!"##$%&'()*+(R:.J:/:<](=B(!.>>:0>(B=>(20.<A(=B(=>(Z4^G>:0;(<=(
U.;;04F0>;(2G0(<=(%$KRZK$%!$(=>(hZRYdRR(E!&-6(QSN7()8+(
aG0>]6(QSN7(#.>.4.4(HI(U0>0g6(RV888M86(`G4I(8S6(*OSM6(QSOI
ARTICLE 1760 .................................................................................. 569
!"##$%&'($BB0?<(=B(!=4<>.>](-<:PG/.<:=46(QSOI
ARTICLE 1761 .................................................................................. ( QMX
!"##$%&'(2G<](=B(U.;;04F0>(<=("J;0>H0(2:/:F04?06(QMXI
ARTICLE 1762 .................................................................................. ( QMX
!"##$%&'(!=4<>:JG<=>](%0F/:F04?0(=B(U.;;04F0>6(QMXI
ARTICLE 1763 .................................................................................. ( QMX
!"##$%&'()*+(L0;P=4;:J:/:<](=B(!=DD=4(!.>>:0>;(B=>(h://BG/(
Acts or Negligence of Strangers or other Passengers (Passen-
F0>;("<A0>(&A.4(<A0([:?<:D;+6(QM*7()8+($b.DP/06(QM*7()@+(!.;06(
QM*7(Y=><G40($bP>0;;6(Z4?I(HI(!E6(0<(./I6(KL(**OMQS6(#.>I(*N6(
*OOO6(QM*I

Subsection 4 COMMON PROVISIONS .......................................... ( QM8

ARTICLE 1764 .................................................................................. ( (QM8
!"##$%&'()*+(Z;(.(!=DD=4(!.>>:0>(R:.J/0(B=>(#=>./(2.D-
.F0;j6(QM87()8+(LG/0(:4(!.;0(=B(UA];:?./(Z4^G>:0;6(QM87()@+(LG/0(:4(
!.;0(=B(20.<A6(QM@7()C+(20.<A(=B(.(Y=0<G;6(QM@7()Q+(2.D.F0;(B=>(
Z//V&>0.<D04<(=B(E:>(U.;;04F0>;6(QMC7(WG/G0<.(HI(U.4(ED0>:?.4(
h=>/5(E:>c.];6(Z4?I6(C@(-!LE(@OM6(QMCI

xliii
 ARTICLE 1765 .................................................................................. ( QMC
!"##$%&'(!.4?0//.<:=4(=B(<A0(!0><:3?.<0(=B(UGJ/:?(!=4H04-
:04?06(QMCI
ARTICLE 1766 .................................................................................. ( QMQ
!"##$%&'(!:H:/(!=50(U>0H.:/;("H0>("<A0>(R.c;6(QMQI

Title IX. PARTNERSHIP ....................................................................... ( QMS

CHAPTER 1 GENERAL PROVISIONS .......................................... ( QMS

ARTICLE 1767 .................................................................................. ( QMS
!"##$%&'()*+(,U.><40>;A:P1(2034056(QMS7(Y0>4.45=(-.4<=;(HI(
-P;I(E>;04:=(_(%:0H0;(L0]0;6(KL(*@QN*@6("?<I(8Q6(8XX*6(QMS7(
)8+( !A.>.?<0>:;<:?;( =B( <A0( !=4<>.?<6( QMM7( )@+( 9:;<=>:?./( %=<0;6(
QMN7()C+(,U.><40>;A:P1(2:;<:4FG:;A05(B>=D(.(,!=>P=>.<:=416(QNX7(
)Q+( ,">5:4.>]( U.><40>;A:P1( 2:;<:4FG:;A05( B>=D( <A0( ,!=4^GF./(
U.><40>;A:P( K.:4;16( QN87( )S+( ,U.><40>;A:P1( 2:;<:4FG:;A05( B>=D(
,!=V=c40>;A:P1()!=DDG4:<](=B(U>=P0><]7(&04.4?](:4(!=DD=4+6(
QNC7()M+(,U.><40>;A:P1(2:;<:4FG:;A05(B>=D(,`=:4<(-<=?e(!=DP.4]16(
QNQ7()N+(,U.><40>;A:P1(2:;<:4FG:;A05(B>=D(,-=?:./(">F.4:g.<:=4;16(
QNS7()O+(,U.><40>;A:P1(2:;<:4FG:;A05(B>=D(,\G;:40;;(&>G;<;16(QNM7(
)*X+(,U.><40>;A:P1(2:;<:4FG:;A05(B>=D(,&04.4?]16(QNM7()**+(,U.><-
40>;A:P1( 2:;<:4FG:;A05( B>=D( ,EF04?]16( QNN7( )*8+( ,U.><40>;A:P1(
2:;<:4FG:;A05(B>=D(.(,`=:4<(E5H04<G>01()=>(`"Z%&(E!!"d%&-+6(
QNN7( )*@+( ,U.><40>;A:P1( 2:;<:4FG:;A05( B>=D( .( ,-]45:?.<016( QNN7(
)*C+( !.P.?:<]( <=( \0?=D0( U.><40>6( QNN7( )*Q+( -=D0( !.;0;6( QNO7(
-0H://.(HI(!E6(KL(C**N8V@6(EP>I(*Q6(*ONN6(QNO7($;<.4:;/.=6(`>I(HI(
!E6(KL(COON86(EP>I(8M6(*ONN6(QOX7(2.4(YG0(R0G4F(HI(ZE!(.45(
R0G4(f:G6(KL(MXO8S6(`.4I(@*6(*ONO6(QO*7(Y0>5:4.45(-.4<=;(HI(
-P;I(E>;04:=(_(%:0H0;(L0]0;6(KL(*@QN*@6("?<I(8Q6(8XX*6(QO8I
ARTICLE 1768 .................................................................................. 592
!"##$%&'()*+($BB0?<(=4(%=4V!=DP/:.4?0(h:<A(E><I(*MM86(*;<(
U.>.F>.PA( )L0F:;<>.<:=4( h:<A( <A0( -0?G>:<:0;( .45( $b?A.4F0(
!=DD:;;:=4+6( QO87( R:/:J0<A( -G4F.V!A.4( _( !0?:/:.( -G4F.( HI(
R.DJ0><=(&I(!AG.6(KL(*C@@CX6(EGFI(*Q6(8XX*6(QO@7()8+(!=4;0-
iG04?0;( =B( <A0( U.><40>;A:P( \0:4F( .( `G>:5:?./( $4<:<]6( QO@7( )@+(
R:D:<.<:=4;(=4(E/:04(U.><40>;A:P;6(QOC7(U05>=(LI(U./<:4F(HI(-.4(
`=;0(U0<>=/0GD6(Z4?I6(RV*CCC*6(20?I(*M6(*OSS6(QOC7()C+(LG/0;(:4(
Case of Associations not Lawfully Organized as Partnerships,
QOQ7()Q+(2:;<:4?<:=4;(\0<c004(U.><40>;A:P;(:4(<A0(UA:/:PP:40;(
.45(&A=;0(:4(ED0>:?.6(QOQ7()S+(U.><40>;A:P(Y>=D(<A0([:0cP=:4<(
of Private International Law, 596.
ARTICLE 1769 .................................................................................. 596
!"##$%&'( )*+( UG>P=;0( =B( E><I( *MSO( )LG/0;( B=>( 20<0>D:4:4F(
$b:;<04?0(=B(U.><40>;A:P;+6(QOM7()8+(L0iG:;:<0;(B=>($b:;<04?0(=B(
U.><40>;A:P6(QOM7()@+(-A.>:4F(=B(%0<(U>=3<;6(QOM7()C+(!.;0;6(QON7(
Y=><:;(HI(KG<:0>>0g(90>D.4=;6(S(UA:/I(*XX6(QON7(\.;<:5.(HI(#04g:(

xliv
 .45(!=I6(QN(UA:/I(*NN6(QON7(R]=4;(HI(L=;04;<=?e6(QS(UA:/I(S@86(
QOO7()Q+(\.>6(QOO7()S+(U>==B(%00505(<=($;<.J/:;A(<A0($b:;<04?0(
=B(.(U.><40>;A:P6(QOO7()M+(U.><40>;A:P(J]($;<=PP0/6(SXXI
ARTICLE 1770 .................................................................................. 600
!"##$%&'()*+(R.cBG/("J^0?<(=>(UG>P=;06(SX*7()8+(aG0>]'(Z;(.(
`G5:?:./(20?>00(%00505(<=(2:;;=/H0(.4(d4/.cBG/(U.><40>;A:Pj(
SX*7( )@+( Z4;<.4?0;( hA04( .( U.><40>;A:P( Z;( d4/.cBG/6( SX*7( )C+(
!=4;0iG04?0;(=B(d4/.cBG/(U.><40>;A:P6(SX87(E>J0;(HI(U=/:;<:?=6(
et al., 53 Phil. 489, 602.
ARTICLE 1771 .................................................................................. 603
!"##$%&'( )*+( Y=>D./:<:0;( %005056( SX@7( )8+( U>=J/0D6( SXC7(
)@+(!.;0;6(SXC7(#.F./=4.(HI(U0;.]?=6(QO(UA:/I(CQ@6(SXC7(\=>^.(
HI(E55:;=46(0<(./I6(CC(UA:/I(NOQ6(SXC7(EF.5(HI(#.J.<=6(RV8C*O@6(
`G4I(8N6(*OSN6(SXQ7()C+(U>=J/0D;6(SXQI
ARTICLE 1772 .................................................................................. ( SXM
!"##$%&'( )*+( UG>P=;0( =B( <A0( L0F:;<>.<:=4( c:<A( <A0( "B3?0(
=B(<A0(-0?G>:<:0;(.45($b?A.4F0(!=DD:;;:=46(SXM7()8+($BB0?<(=B(
%=4VL0F:;<>.<:=46(SXMI
ARTICLE 1773 .................................................................................. ( SXM
!"##$%&'( )*+( L0iG:>0D04<;( hA0>0( ZDD=H.J/0( U>=P0><]( :;(
!=4<>:JG<056(SXN7()8+(EPP/:?.J:/:<](=B(<A0(E><:?/06(SXN7()@+(L0F-
:;<>.<:=4(:4(<A0(L0F:;<0>(=B(U>=P0><]6(SXNI
ARTICLE 1774 .................................................................................. 608
!"##$%&'( )*+( E?iG:;:<:=4( =B( U>=P0><]( G450>( <A0( U.><40>-
;A:P( %.D06( SXN7( )8+( E/:04( U.><40>;6( SXN7( )@+( R:D:<.<:=4;( =4(
E?iG:;:<:=46(SXOI
ARTICLE 1775 .................................................................................. 609
!"##$%&'()*+(ZB(E><:?/0;(E>0(T0P<(-0?>0<6(SXO7()8+($BB0?<(=B(
Certain Transactions, 610.
ARTICLE 1776 .................................................................................. 610
!"##$%&'( )*+( !/.;;:3?.<:=4( =B( U.><40>;A:P;6( S*X7( )8+( !/.;-
;:3?.<:=4(Z4<=(K040>./(.45(R:D:<056(S*87()@+($b.DP/0(=B(U.><-
40>;A:P(20(Y.?<=6(S*87()C+($b.DP/0(=B(U.><40>;A:P(J]($;<=PP0/6(
S*87()Q+(Y=>D./:<:0;(%00505(B=>(<A0(!>0.<:=4(=B(.(U.><40>;A:P6(
613.
ARTICLE 1777 .................................................................................. 613
!"##$%&'(T:45;(=B(d4:H0>;./(U.><40>;A:P;6(S*@I
ARTICLE 1778 .................................................................................. 614
!"##$%&'(2034:<:=4(=B(d4:H0>;./(U.><40>;A:P(=B(E//(U>0;04<(
Property, 614.

xlv
 ARTICLE 1779 .................................................................................. 614
!"##$%&'(&>.4;B0>(=B("c40>;A:P(B>=D(<A0(U.><40>;(<=(<A0(
Universal Partnership, 614.
ARTICLE 1780 .................................................................................. 614
!"##$%&'()*+(d4:H0>;./(U.><40>;A:P(=B(U>=3<;6(S*Q7()8+(2:;-
<:4?<:=4;6( S*Q7( )@+( YG<G>0( U>=P0><]6( S*S7( )C+( -=D0( 9]P=<A0<:-
?./( U>=J/0D;( =4( ERR( UL$-$%&( UL"U$L&f6( S*S7( )Q+( -=D0(
9]P=<A0<:?./(U>=J/0D;(=4(U>=3<;6(S*MI
ARTICLE 1781 .................................................................................. 618
!"##$%&'( U>0;GDP<:=4( :4( Y.H=>( =B( U.><40>;A:P( =B( U>=3<;6(
618.
ARTICLE 1782 .................................................................................. 618
!"##$%&'( )*+( U0>;=4;( hA=( &=F0<A0>( !.44=<( Y=>D( .( d4:-
H0>;./( U.><40>;A:P6( S*N7( !=DD:;;:=40>( =B( Z4<0>4./( L0H04G0(
HI( h://:.D( `I( -G<0>( .45( <A0( !=G><( =B( &.b( EPP0./;6( RV8QQ@86(
Y0JI( 8N6( *OSO6( S*N7( )8+( L0.;=4( B=>( <A0( E><:?/06( S*O7( )@+( $BB0?<(
=B([:=/.<:=46(S*OI
ARTICLE 1783 .................................................................................. 619
!"##$%&'()*+(,U.><:?G/.>(U.><40>;A:P1(2034056(S*O7()8+($b-
.DP/0;6(S*O7()@+(2=?<>:406(S8XI
CHAPTER 2 OBLIGATIONS OF THE PARTNERS .................... 621
Section 1 OBLIGATIONS OF THE PARTNERS
AMONG THEMSELVES .......................................... 621
2:BB0>04<( L0/.<:=4;A:P;6( S8*7( -=D0( "J/:F.<:=4;( =B( .( U.><40>6(
S8*7(-=D0(L:FA<;(=B(.(U.><40>6(S88I
ARTICLE 1784 .................................................................................. 622
!"##$%&'( )*+( hA04( E( U.><40>;A:P( \0F:4;6( S887( )8+( Z4<04<(
<=(!>0.<0(.(YG<G>0(U.><40>;A:P6(S887()@+(LG/0(:B(!=4<>:JG<:=4;(
9.H0(%=<(f0<(\004(E?<G.//](#.506(S8@I
ARTICLE 1785 .................................................................................. 623
!"##$%&'( )*+( 2G>.<:=4( =B( .( U.><40>;A:P6( S8@7( )8+( U.><40>-
;A:P(kE<(h://l6(S8@I
ARTICLE 1786 .................................................................................. 624
!"##$%&'()*+(&A>00(ZDP=><.4<(2G<:0;(=B($H0>](U.><40>6(S8C7(
)8+(&A0(2G<](<=(!=4<>:JG<06(S8C7(#=>.46(`>I(HI(!=G><(=B(EPP0./;6(
RVQOOQS6("?<I(@*6(*ONC6(S8Q7()@+(&A0(2G<](<=(20/:H0>(<A0(Y>G:<;6(
S8Q7()C+(&A0(2G<](<=(h.>>.4<6(S8Q7()Q+(U>=J/0D6(S8SI
ARTICLE 1787 .................................................................................. 626
!"##$%&'()*+(hA04(!=4<>:JG<:=4(!=4;:;<;(=B(K==5;6(S8S7()8+(
9=c( EPP>.:;./( Z;( #.506( S8S7( )@+( %0?0;;:<]( =B( <A0( Z4H04<=>]V
EPP>.:;./6(S8S7()C+(L:;e(=B(R=;;6(S8MI

xlvi
ARTICLE 1788 .................................................................................. ( S8M
!"##$%&'()*+(LG/0;(=B(Y.:/G>0(<=(!=4<>:JG<0(.45(B=>(!=4H0>-
;:=46(S8M7()8+(!=H0>.F0(=B(R:.J:/:<]6(S8M7()@+(hA](%=(20D.45(Z;(
%00505(<=(UG<(U.><40>(:4(20B.G/<6(S8M7()C+(-=D0(!.;0;6(S8NI
ARTICLE 1789 .................................................................................. 628
!"##$%&'()*+(!/.;;:3?.<:=4(=B(U.><40>;6(S8O7()8+(2034:<:=4;(
.45( -=D0( !A.>.?<0>:;<:?;6( S8O7( )@+( 2:;<:4?<:=4;( \0<c004( .(
,!.P:<./:;<1(.45(.4(,Z45G;<>:./(U.><40>16(S@XI
ARTICLE 1790 .................................................................................. 631
!"##$%&'( )*+( ED=G4<( =B( !=4<>:JG<:=46( S@*7( )8+( &=( hA=D(
Applicable, 631.
ARTICLE 1791 .................................................................................. 632
!"##$%&'()*+(hA04(.(!.P:<./:;<(U.><40>(Z;("J/:F05(<=(-0//(
9:;( Z4<0>0;<( <=( <A0( "<A0>( U.><40>;6( S@87( )8+( L0.;=46( S@87( )@+(
LG/0(B=>(<A0(Z45G;<>:./(U.><40>;6(S@8I
ARTICLE 1792 .................................................................................. 632
!"##$%&'( )*+( LG/0( :B( #.4.F:4F( U.><40>( !=//0?<;( .( !>05:<6(
S@@7()8+($b.DP/06(S@@7()@+(hA04(E><:?/0(2=0;(%=<(EPP/]6(S@CI
ARTICLE 1793 .................................................................................. 634
!"##$%&'()*+(E><I(*MO8(!=DP.>05(h:<A(E><I(*MO@()hA0>0(.(
U.><40>(L0?0:H0;(9:;(-A.>0(=B(.(U.><40>;A:P(!>05:<+6(S@C7()8+(
$b.DP/06(S@C7()@+(aG0>]6(S@QI
ARTICLE 1794 .................................................................................. 635
!"##$%&'( )*+( hA]( K040>./( 2.D.F0;( !.44=<( \0( "BB;0<( J](
\0403<;6(S@Q7()8+(#:<:F.<:=4(=B(R:.J:/:<]6(S@Q7()@+(%005(B=>(R:iG:-
5.<:=46(S@Q7()C+($BB0?<(=B(20.<A(=B(<A0(%0F/:F04<(U.><40>6(S@SI
ARTICLE 1795 .................................................................................. 636
!"##$%&'(L:;e(=B(R=;;6(S@SI(
ARTICLE 1796 .................................................................................. ( S@M
!"##$%&'(L0;P=4;:J:/:<](=B(Y:>D6(S@MI
ARTICLE 1797 .................................................................................. 638
!"##$%&'( )*+( 9=c( U>=3<;( E>0( 2:;<>:JG<056( S@N7( )8+( 9=c(
R=;;0;( .>0( 2:;<>:JG<056( S@N7( )@+( Z45G;<>:./( U.><40>1;( U>=3<;6(
S@N7()C+(Z45G;<>:./(U.><40>1;(R=;;0;6(S@N7()Q+(%=4VEPP/:?.J:/:<](
to Strangers, 639.
ARTICLE 1798 .................................................................................. 639
!"##$%&'(20;:F4.<:=4(J](&A:>5(U0>;=4(=B(-A.>0;(:4(U>=3<;(
and Losses, 639.

xlvii
ARTICLE 1799 .................................................................................. 639
!"##$%&'()*+(-<:PG/.<:=4($b?/G5:4F(.(U.><40>(B>=D(U>=3<;(
=>(R=;;0;6(SCX7()8+(L0.;=4(hA](Z45G;<>:./(U.><40>(Z;(K040>.//](
$b0DP<05(B>=D(R=;;0;6(SCX7()@+(U>=J/0D6(SCXI
ARTICLE 1800 .................................................................................. 641
!"##$%&'( )*+( EPP=:4<D04<( =B( #.4.F0>6( SC*7( )8+( EPP=:4<-
D04<( :4( E><:?/0;( =B( U.><40>;A:P6( SC*7( )@+( EPP=:4<D04<( "<A0>(
&A.4( :4( <A0( E><:?/0;( =B( U.><40>;A:P6( SC87( )C+( -?=P0( =B( U=c0>;(
=B(.(#.4.F0>6(SC8I
ARTICLE 1801 .................................................................................. 643
!"##$%&'( )*+( LG/0( hA04( &A0>0( E>0( &c=( =>( #=>0( #.4.F-
0>;6(SC@7()8+(-P0?:3?(LG/0;6(SC@7()@+(hA04("PP=;:<:=4(#.](\0(
#.506(SCCI
ARTICLE 1802 .................................................................................. 644
!"##$%&'( )*+( hA04( d4.4:D:<]( Z;( L0iG:>056( SCC7( )8+( 2G<](
=B(&A:>5(U0>;=4;6(SCQ7(-D:<A6(\0//6(.45(!=I(HI(Eg4.>6()!E+(CX(
O.G. 1882, 645.
ARTICLE 1803 .................................................................................. 646
!"##$%&'()*+(LG/0;(<=(\0("J;0>H05(hA04(#.440>(=B(#.4-
.F0D04<(9.;(%=<(\004(EF>005(dP=46(SCS7()8+(!.;0;6(SCM7(L05(
#04( HI( [0<0>.4( E>D]6( M( UA:/I( SNQ6( SCM7( !>:.5=( HI( KG<:0>>0g(
90>D.4=;6(@M(UA:/I(NN@6(SCM7(-]V\=?=(HI(f.P(&04F6(M(UA:/I(*86(
SCN7()@+(LG/0(=4(E/<0>.<:=4;6(SCNI
ARTICLE 1804 .................................................................................. 648
!"##$%&'(E;;=?:.<0(=B(U.><40>6(SCOI
ARTICLE 1805 .................................................................................. 649
!"##$%&'()*+(U.><40>;A:P(\==e;6(SCO7()8+([./G0(=B(U.><40>-
;A:P( \==e;( =B( E??=G4<( .;( $H:504?06( SQX7( K.>>:5=( HI( E;04?:=6(
10 Phil. 691, 650.
ARTICLE 1806 .................................................................................. 650
!"##$%&'()*+(2G<](=B(U.><40>;(<=(K:H0(Z4B=>D.<:=46(SQ*7(U=;;(
HI(K=<</:0J6(*O886(*N(#:;?I(@*N6(SQ*7()8+($>>=>;(:4(<A0(\==e6(SQ*7(
&0>4.<0(HI(E4:H0>;.>:=6(N(UA:/I(8O86(SQ*7()@+(hA=(!.4(20D.45(
Information, 652.
ARTICLE 1807 .................................................................................. 652
!"##$%&'()*+(2G<](<=(E??=G4<6(SQ87()8+(-=D0(U>=J/0D;6(SQ@7(
)@+(-=D0(!.;0;6(SQC7(\G04.H04<G>.(HI(2.H:56(@M(UA:/I(C@Q6(SQC7(
&G.;=4( .45( -.4( U05>=( HI( K.H:4=( W.D=>.( .45( -=4;6( 8( UA:/I(
@XQ6(SQC7(U.4F(R:D(.45(K./H0g(HI(R=(-04F6(C8(UA:/I(8N86(SQQ7(
9.4/=4(HI(9.G;;0>D.44(.45(\0.D6(CX(UA:/I(MOS6(SQS7(&0.FG0(
HI(#.><:46(0<(./I6(Q@(UA:/I(QXC6(SQSI

xlviii
 ARTICLE 1808 .................................................................................. 656
!"##$%&'( )*+( \G;:40;;( U>=A:J:<:=4( =4( !.P:<./:;<( U.><40>;6(
SQM7()8+(Z4;<.4?0;(hA04(&A0>0(Z;(%=(U>=A:J:<:=46(SQM7()@+($B-
B0?<(=B([:=/.<:=46(SQMI
ARTICLE 1809 .................................................................................. 658
!"##$%&'()*+(L:FA<(<=(20D.45(.(Y=>D./(E??=G4<6(SQN7(R0G4F(
HI(ZE!(.45(f:G6(KL(MXO8S6(`.4I(@*6(*ONO6(SQO7()8+($;<=PP0/6(SQO7(
(3) Stipulation About Continuing Share, 659.

Section 2 PROPERTY RIGHTS OF A PARTNER ....................... 660

ARTICLE 1810 .................................................................................. 660
!"##$%&'(U>=P0><](L:FA<;(=B(.(U.><40>6(SSXI
ARTICLE 1811 .................................................................................. 660
!"##$%&'()*+(!=V"c40>;A:P(:4(-P0?:3?(U.><40>;A:P(U>=P0><]6(
SS*7()8+(L:FA<;(=B(.(U.><40>(:4(-P0?:3?(U.><40>;A:P(U>=P0><]6(
SS*7()@+(-=D0(!.;0;6(SS87(T:DJ./(HI(9.D:/<=4(YI(Z4;I(!=I()*NS*+6(
N(\=;I()%IfI+(COQ6(SS87(#?K>.<A(HI(!=c046()*NON+6(QM("A:=(-<I6(
@NQ6(SS87(-A0>c==5(HI(`.?e;=46(N(UI()85+(OC@6(SS@I
ARTICLE 1812 .................................................................................. 663
!"##$%&'(E(U.><40>1;(Z4<0>0;<(:4(<A0(U.><40>;A:P6(SS@I
ARTICLE 1813 .................................................................................. 663
!"##$%&'( )*+( $BB0?<( =B( !=4H0].4?0( \]( U.><40>;( =B( 9:;( Z4-
<0>0;<(:4(<A0(U.><40>;A:P6(SSC7()8+(L:FA<;(=B(<A0(E;;:F4006(SSQ7(
)@+(LG/0(:4(!.;0(=B(#=><F.F0;6(SSQ7(hA:<0(HI(R=4F6(*O8M6(8NO(
Pa. 526, 665.
ARTICLE 1814 .................................................................................. 666
!"##$%&'( )*+( !A.>F:4F( <A0( Z4<0>0;<( =B( .( U.><40>6( SSS7( )8+(
U>0B0>04<:./( L:FA<;( =B( U.><40>;A:P( !>05:<=>;6( SSM7( )@+( L0?0:H-
0>;A:P6( SSM7( )C+( L050DP<:=4( =B( <A0( Z4<0>0;<( !A.>F056( SSN7( )Q+(
Exemption Laws, 668.

Section 3 OBLIGATIONS OF THE PARTNERS WITH

REGARD TO THIRD PERSONS ........................... 669
ARTICLE 1815 .................................................................................. 669
!"##$%&'( )*+( Y:>D( %.D06( SSO7( -A.>>GB( .45( !=I( HI( \./=:;0(
Y:>0(Z4;G>.4?0(!=I6(SC(UA:/I(8QN6(SSO7()8+(R:.J:/:<](=B(-<>.4F0>;(
hA=(Z4?/G50(&A0:>(%.D0;6(SMXI
ARTICLE 1816 .................................................................................. ( SMX
!"##$%&'( )*+( R:.J:/:<]( 2:;<:4FG:;A05( B>=D( R=;;0;6( SMX7( )8+(
$b.DP/06(SM*7()@+(R:.J:/:<](=B(.(U.><40>(hA=(9.;(h:<A5>.c46(
SM*7( )C+( d40iG./( !=4<>:JG<:=4( =B( !.P:<./:;<( U.><40>;6( SM*7(
)Q+( \.>6( SM87( Z;/.45( -./0;6( Z4?I( HI( d4:<05( U:=400>;( K040>./(

xlix
 !=4;<>G?<:=4(!=I6(0<(./I6(RV88CO@6(`G/I(@*6(*OMQ6(SM87()S+($BB0?<(
=B( -<:PG/.<:=4( $b0DP<:4F( R:.J:/:<]( <=( &A:>5( U0>;=4;6( SM@7( )M+(
!=DD04<(=B(<A0(!=50(!=DD:;;:=46(SM@7()N+(U.><40>(E?<:4F(:4(
9:;("c4(%.D06(SM@I
ARTICLE 1817 .................................................................................. ( SM@
!"##$%&'( )*+( -<:PG/.<:=4( $/:D:4.<:4F( R:.J:/:<]6( SMC7( )8+(
,R:.J:/:<]1(.45(,R=;;0;1(2:;<:4FG:;A056(SMC7()@+(\.>6(SMCI
ARTICLE 1818 .................................................................................. ( SMQ
!"##$%&'( )*+( hA04( E( U.><40>( !.4( \:45( =>( !.44=<( \:45(
<A0( Y:>D6( SMS7( )8+( EF04?]( =B( .( U.><40>6( SMS7( )@+( hA04( !.4( .(
U.><40>(\:45(<A0(U.><40>;A:P6(SMS7()C+(hA04(h://(<A0(E?<(=B(<A0(
U.><40>( %=<( \:45( <A0( U.><40>;A:P6( SMN7( )Q+( L0.;=4;( hA]( <A0(
M(E?<;(=B("c40>;A:P(.>0(kd4G;G./l6(SMO7(20(/.(L=;.(HI("><0F.(
Go-Cotay, 48 Phil. 605, 680.
ARTICLE 1819 .................................................................................. 680
!"##$%&'()*+(!=4H0].4?0(=B(L0./(U>=P0><]6(SN*7()8+($b.DP/0(
=B(U.>I(%=I(*6(SN87()@+($b.DP/0(=B(U.>I(%=I(86(SN@7()C+($b.DP/0(
=B(U.>I(%=I(@6(SN@7()Q+($b.DP/0(=B(U.>I(%=I(C6(SNC7()S+($b.DP/0(
of Par. No. 5, 684.
ARTICLE 1820 .................................................................................. 685
!"##$%&'( )*+( E5D:;;:=4( =>( L0P>0;04<.<:=4( #.50( \]( .(
U.><40>6(SNQ7()8+(L0;<>:?<:=4;(=4(<A0(LG/06(SNQ7(">D.?A0.(&:4(
!=4F?=(HI(&>://.4.6(*@(UA:/I(*OC6(SNS7()@+(U>0H:=G;(E5D:;;:=46(
686.
ARTICLE 1821 .................................................................................. 686
!"##$%&'()*+($BB0?<(=B(%=<:?0(<=(.(U.><40>6(SNS7()8+($BB0?<(=B(
T4=c/05F0(E/<A=GFA(%=(%=<:?0(h.;(K:H046(SNM7()@+(U>=J/0D6(
SNN7()C+(-0>H:?0(=B(U/0.5:4F(=4(.(U.><40>(:4(.(R.c(Y:>D6(SNNI
ARTICLE 1822 .................................................................................. 688
!"##$%&'()*+(h>=4FBG/(E?<(=>("D:;;:=4(=B(.(U.><40>6(SNO7()8+(
Z4^G>](<=(.4($DP/=]006(SNO7()@+(hA04(<A0(Y:>D(.45(<A0("<A0>(
Partners are NOT Liable, 689.
ARTICLE 1823 .................................................................................. 690
!"##$%&'( R:.J:/:<]( =B( <A0( U.><40>;( B=>( #:;.PP>=P>:.<:=46(
690.
ARTICLE 1824 .................................................................................. 690
!"##$%&'( )*+( -=/:5.>]( R:.J:/:<]( =B( <A0( U.><40>;( h:<A( <A0(
U.><40>;A:P6(SOX7()8+($b.DP/06(SO*I
ARTICLE 1825 .................................................................................. 691
!"##$%&'()*+(U.><40>(.45(U.><40>;A:P(\]($;<=PP0/6(SO87()8+(
9=c(<A0(U>=J/0D(#.](E>:;06(SO87()@+(hA04($;<=PP0/(2=0;(%=<(

l
 EPP/]6( SO@7( )C+( $b.DP/0;( =B( .( kU.><40>( J]( $;<=PP0/l6( SO@7( )Q+(
\G>504(=B(U>==B6(SOC7()S+(U>=J/0D6(SOCI
ARTICLE 1826 .................................................................................. 695
!"##$%&'( )*+( $4<>]( =B( .( %0c( U.><40>( Z4<=( .4( $b:;<:4F(
U.><40>;A:P6( SOQ7( )8+( !>0.<:=4( =B( .( %0c( U.><40>;A:P( :4( [:0c(
=B( <A0( $4<>]6( SOQ7( )@+( R:.J:/:<]( =B( %0c( U.><40>( B=>( U>0H:=G;(
Obligations, 696.
ARTICLE 1827 .................................................................................. ( SOM
!"##$%&'( )*+( L0.;=4( B=>( <A0( P>0B0>04?0( =B( U.><40>;A:P(
!>05:<=>;6(SOM7()8+(L0.;=4(hA](Z45:H:5G./(!>05:<=>;(#.](-<://(
E<<.?A(<A0(U.><40>1;(-A.>06(SOM7()@+(-./0( J]( .( U.><40>( =B( 9:;(
-A.>0(<=(.(&A:>5(U.><]6(SOMI

CHAPTER 3 DISSOLUTION AND WINDING UP ....................... 698

ARTICLE 1828 .................................................................................. 698
!"##$%&'(2:;;=/G<:=4(2034056(SONI
ARTICLE 1829 .................................................................................. 698
!"##$%&'( )*+( ,2:;;=/G<:=41( 2034056( SON7( )8+( ,h:45:4F( dP1(
2034056( SON7( L0?04<0;( HI( !=G><( =B( Y:>;<( Z4;<.4?06( KL( CXQXC6(
`G/I(8O6(*ON@6(SOO7()@+(,&0>D:4.<:=41(2034056(SOO7()C+($BB0?<(=4(
Obligations, 699.
ARTICLE 1830 .................................................................................. 699
!"##$%&'( )*+( !.G;0;( =B( 2:;;=/G<:=46( MXX7( )8+( %=( [:=/.<:=4(
=B(EF>00D04<6(MXX7()@+(!.G;0(%=I(8(nn([:=/.<:=4(=B(EF>00D04<6(
MX*7( )C+( !.G;0( %=I( @( nn( d4/.cBG/40;;( =B( <A0( \G;:40;;6( MX87(
)Q+(!.G;0(%=I(C(nn(R"--6(MX87()S+(!.G;0(=B(%=I(Q(nn(2$E&9(
=B( E%f( U.><40>6( MX87( K=iG:=/.]( HI( -]?:P6( RV**NCX6( 20?I( *X6(
*OS@6( MX@7( \0.>40g.( HI( 20iG://.6( C@( UA:/I( 8@M6( MX@7( )M+( !.G;0(
%=I(S(nn(Z4;=/H04?](=B(.4](U.><40>(=>(=B(<A0(U.><40>;A:P6(MXC7(
)N+( !.G;0( %=I( M( nn( !:H:/( Z4<0>5:?<:=4( =B( .4]( U.><40>6( MXQ7( )O+(
!.G;0(%=I(N(nn(20?>00(=B(<A0(!=G><(G450>(E><I(*N@*6(MXQ7()*X+(
20?>0.;0( =B( !.G;0;( =B( 2:;;=/G<:=46( MXQ7( )**+( !.;0;6( MXQ7( $G-
F04:.(R:?A.G?=6(0<(./I(HI(Y.G;<:4=(R:?A.G?=6(@@(UA:/I(@QX6(MXQ7(
h./<0>(`.?e;=4(HI(U.G/(\/GD6(0<(./I6(*(UA:/I(C6(MXS7(-=/=D=4(HI(
9=//.450>6(QQ(#:?AI(8QS6(MXSI
ARTICLE 1831 .................................................................................. ( MXS
!"##$%&'( )*+( 2:;;=/G<:=4( J]( `G5:?:./( 20?>006( MXM7( )8+( hA=(
!.4( -G0( B=>( 2:;;=/G<:=46( MXM7( )@+( Z4;.4:<]( =B( .( U.><40>6( MXN7(
)C+( Z4?.P.J:/:<]( <=( U0>B=>D( U.><6( MXN7( )Q+( U>0^G5:?:./( !=45G?<(
=>( U0>;:;<04<( \>0.?A( =B( <A0( EF>00D04<6( MXN7( U=<<0>6( 0<( ./I( HI(
\>=c46(0<(./I6(@8N(U.I(QQC6(**N(ERL(*C*Q6(MXN7()S+(EPP=:4<D04<(
=B(L0?0:H0>6(M*X7()M+(&:D0(=B(2:;;=/G<:=46(M*XI
ARTICLE 1832 .................................................................................. ( M*X

li
 !"##$%&'()*+($BB0?<(=B(2:;;=/G<:=46(M**7()8+($BB0?<(=4(U>0H:=G;(
!=4<>.?<;6(M**7()@+(!>05:<=>;(hA=(9.H0(%=<(\004(U>0^G5:?056(
M**I
ARTICLE 1833 .................................................................................. ( M*8
!"##$%&'()*+(&c=(T:45;(=B(!.G;0;(B=>(2:;;=/G<:=46(M*87()8+(
2:;;=/G<:=4(!.G;05(J](EVZV26(M*87()@+($BB0?<(=B(EVZV26(M*@7()C+(
$b.DP/0;6(M*@I
ARTICLE 1834 .................................................................................. ( M*Q
!"##$%&'( )*+( hA04( Y:>D( Z;( \=G45( =>( %=<( \=G456( M*S7( )8+(
hA04( U.><40>;A:P( Z;( \"d%2( ).( P.><40>;A:P( /:.J:/:<]( :;( ?>0-
.<05+6(M*S7()@+(hA04(Z;(<A0(YZL#(4=<(\"d%2j6(M*N7()C+(-=D0(
20?:505(!.;0;6(M*N7(`!9(-0>H:?0(-<.<:=4(HI(U.<>:e0;()*OCC+6(*N*(
#:;?I(CX*6(M*N7(#?%0:/(!=I(HI(9.D/0<()*O*O+6(8*@(Z//I(EPP/I(QX*6(
M*O7(Y>=0;;(HI(Y>=0;;6(8NO(U.I(-<I6(SO*6(*@M(EI(*8C6(M*OI
ARTICLE 1835 ................................................................................. ( M*O
!"##$%&'( )*+( 2:;;=/G<:=4( ">5:4.>:/]( 2=0;( %=<( 2:;?A.>F0(
$b:;<:4F(R:.J:/:<](=B(U.><40>;6(M8X7()8+(9=c(.(U.><40>1;(R:.J:/-
:<](:;(2:;?A.>F056(M8X7()@+(U>=J/0D6(M8X7()C+($BB0?<(=B(20.<A(=4(
U045:4F(E?<:=46(M8XI
ARTICLE 1836 .................................................................................. ( M8*
!"##$%&'()*+($b<>.^G5:?:./(.45(`G5:?:./(h:45:4FVdP6(M8*7()8+(
LG/0(:B(-G>H:H=>(Z;(%=<(<A0(#.4.F0>6(M887()@+(U>=3<;6(M88I
ARTICLE 1837 .................................................................................. ( M88
!"##$%&'()*+(&c=(E;P0?<;(=B(!.G;0;(=B(2:;;=/G<:=46(M8C7()8+(
\0<<0>(L:FA<;(B=>(Z44=?04<(U.><40>;6(M8C7()@+(L:FA<(=B(Z44=?04<(
U.><40>;(<=(!=4<:4G06(M8C7()C+(L:FA<(<=(K0<(!.;A6(M8Q7()Q+(%=(
-A.>0(:4(K==5c://(B=>(KG:/<](U.><40>6(M8Q7()S+(U.><40>(h>=4F-
BG//]($b?/G5056(M8Q7()M+(2:H:;:=4(=B(R=;;0;6(M8SI
ARTICLE 1838 .................................................................................. ( M8S
!"##$%&'()*+(L0;?:;;:=4(=>(E44G/D04<(=B(U.><40>;A:P(!=4-
<>.?<6(M8M7()8+(&A>00(L:FA<;6(M8MI
ARTICLE 1839 .................................................................................. ( M8M
!"##$%&'()*+(LG/0;(B=>(-0<</:4F(E??=G4<;6(M8N7()8+(&A0(E;-
;0<;( =B( <A0( U.><40>;A:P6( M8O7( )@+( ">50>( =B( U.]D04<( =B( Y:>D1;(
R:.J:/:<:0;6(M8O7()C+(%0c(!=4<>:JG<:=4;6(M@X7()Q+(U>=J/0D6(M@X7(
)S+( U>0B0>04?0( h:<A( L0;P0?<( <=( <A0( E;;0<;6( M@*7( )M+( LG/0( :B(
U.><40>(:;(Z4;=/H04<6(M@*I
ARTICLE 1840 .................................................................................. ( M@8
!"##$%&'( )*+( L:FA<( =B( "/5( !>05:<=>;( <=( J0( !>05:<=>;( =B( <A0(
%0c(Y:>D6(M@@7()8+($b.DP/06(M@@I
ARTICLE 1841 .................................................................................. ( M@@

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 !"##$%&'(L0<:>0D04<(=>(20.<A(=B(.(U.><40>6(M@CI
ARTICLE 1842 ................................................................................. ( M@C
!"##$%&I()*+(hA04(L:FA<(<=(E??=G4<(E??>G0;6(M@C7()8+(U=;-
;:J/0(20B045.4<;6(M@QI

CHAPTER 4 LIMITED PARTNERSHIP ........................................ ( M@S

ARTICLE 1843 .................................................................................. ( M@S
!"##$%&'(L0.;=4(B=>(.45(9:;<=>](=B(R:D:<05(U.><40>;A:P;6(
M@SI
ARTICLE 1844 .................................................................................. ( MCX
!"##$%&'( )*+( L0iG:;:<0;( :4( <A0( Y=>D.<:=4( =B( .( R:D:<05(
U.><40>;A:P6(MC*7()8+(%=4VYG/3//D04<(=B(<A0(L0iG:;:<0;6(MC*7()@+(
$BB0?<(:B("4/](EFF>0F.<0(!=4<>:JG<:=4(:;(-<.<056(MC*7()C+($BB0?<(
=B("D:<<:4F(<A0(&0>D(kR:D:<05l(:4(<A0(Y:>D(%.D06(MC8I
ARTICLE 1845 .................................................................................. ( MC8
!"##$%&'( )*+( hA.<( <A0( R:D:<05( U.><40>( !.4( !=4<>:JG<06(
MC87()8+(Z45G;<>:./(U.><40>(!.4(`=:46(MC8I
ARTICLE 1846 .................................................................................. ( MC8
!"##$%&'( %=4VZ4?/G;:=4( =B( %.D0( =B( <A0( R:D:<05( U.><40>6(
MC8I
ARTICLE 1847 .................................................................................. ( MC@
!"##$%&'(R:.J:/:<](B=>(.(Y./;0(-<.<0D04<6(MC@I
ARTICLE 1848 .................................................................................. ( MC@
!"##$%&'($BB0?<(=B(&.e:4F(U.><(:4(<A0(!=4<>=/(=B(<A0(\G;:-
40;;6(MC@I
ARTICLE 1849 .................................................................................. ( MCC
!"##$%&'( )*+( hA04( E55:<:=4./( R:D:<05( U.><40>;( #.]( \0(
E5D:<<056(MCC7()8+($BB0?<(=B(Y.:/G>0(<=(ED0456(MCCI
ARTICLE 1850 .................................................................................. ( MCC
!"##$%&'()*+(E?<;(=B(-<>:?<(2=D:4:=46(MCQ7()8+(!=4p:?<;(LG/0(
K=H0>4:4F(!.P.?:<](=B(<A0(R:D:<05(U.><40>6(MCQI
ARTICLE 1851 .................................................................................. ( MCQ
!"##$%&'(L:FA<;(=B(.(R:D:<05(U.><40>6(MCSI
ARTICLE 1852 .................................................................................. ( MCS
!"##$%&'()*+(!=4<>:JG<=>(hA=($>>=40=G;/](\0/:0H0;(90(9.;(
\0?=D0(.(R:D:<05(U.><40>6(MCS7()8+(hA04(90(\0?=D0;(R:.J/0(E;(
.(K040>./(U.><40>6(MCM7()@+(R:D:<05(U.><40>(hA=(U.><:?:P.<0;(
:4(<A0(!=4<>=/(!.44=<(&.e0(E5H.4<.F0(=B(<A0(E><:?/06(MCMI

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ARTICLE 1853 .................................................................................. ( MCM
!"##$%&'( )*+( K040>./( q( R:D:<05( U.><40>6( MCM7( )8+( L:FA<;6(
MCNI
ARTICLE 1854 .................................................................................. ( MCN
!"##$%&'( L:FA<( =B( .( R:D:<05( U.><40>( <=( R045( #=40]( .45(
&>.4;.?<("<A0>(\G;:40;;(h:<A(<A0(Y:>D6(MCNI
ARTICLE 1855 .................................................................................. ( MCO
!"##$%&'()*+(U>0B0>04?0(<=(-=D0(R:D:<05(U.><40>;6(MCO7()8+(
%.<G>0(=B(<A0(U>0B0>04?06(MCOI
ARTICLE 1856 .................................................................................. ( MCO
!"##$%&'( U>=B:<( =>( !=DP04;.<:=4( =B( R:D:<05( U.><40>;6(
MCOI
ARTICLE 1857 .................................................................................. ( MQX
!"##$%&'()*+(hA04(!=4<>:JG<:=4;(=B(R:D:<05(U.><40>;(!.4(
\0(L0<G>4056(MQ*7()8+(R:.J:/:<](=B(.(R:D:<05(U.><40>(hA=(9.;(
h:<A5>.c46(MQ*I
ARTICLE 1858 .................................................................................. ( MQ8
!"##$%&'()*+(R:.J:/:<:0;(=B(.(R:D:<05(U.><40>6(MQ87()8+(U>=J-
/0D(Z4H=/H:4F(R:.J:/:<](<=(!>05:<=>;6(MQ@I
ARTICLE 1859 .................................................................................. ( MQC
!"##$%&'( )*+( E;;:F4D04<( =B( .( R:D:<05( U.><40>1;( Z4<0>0;<6(
MQC7()8+(-=D0(U>=J/0D;6(MQQ7()@+(-GJ;<:<G<05(R:D:<05(U.><40>6(
MQS7()C+(-=D0(U>=J/0D;6(MQSI
ARTICLE 1860 .................................................................................. ( MQS
!"##$%&'( -=D0( !.G;0;( B=>( <A0( 2:;;=/G<:=4( =B( .( R:D:<05(
U.><40>;A:P6(MQSI
ARTICLE 1861 .................................................................................. ( MQM
!"##$%&'()*+(20.<A(=B(.(R:D:<05(U.><40>6(MQM7()8+(U>=J/0D6(
MQNI
ARTICLE 1862 .................................................................................. ( MQN
!"##$%&'( )*+( !A.>F:4F( <A0( Z4<0>0;<( =B( .( R:D:<05( U.><40>6(
MQN7()8+($b.DP/06(MQNI
ARTICLE 1863 .................................................................................. ( MQO
!"##$%&'( U.]D04<( =B( R:.J:/:<:0;( =B( <A0( R:D:<05( U.><40>-
;A:P6(MQOI
ARTICLE 1864 .................................................................................. ( MQO
!"##$%&'( )*+( hA04( !0><:3?.<0( Z;( !.4?0//05( =>( ED045056(
MSX7()8+(!.4?0//.<:=46(MSXI

liv
 ARTICLE 1865 ................................................................................. ( MS*
!"##$%&'( )*+( L0iG:;:<0;( B=>( ED045:4F( =>( !.4?0//:4F( <A0(
!0><:3?.<06(MS87()8+(U>=J/0D;6(MS8I
ARTICLE 1866 .................................................................................. ( MS8
!"##$%&'(hA04(!=4<>:JG<=>;()"<A0>(&A.4(K040>./(U.><40>;+(
-A=G/5(\0(#.50(U.><:0;(<=(U>=?005:4F;6(MS8I
ARTICLE 1867 .................................................................................. ( MS8
!"##$%&'(&>.4;:<:=4./(U>=H:;:=4;(=4(R:D:<05(U.><40>;A:P;6(
MS@I

Title X. AGENCY ...................................................................................... ( MSC

CHAPTER 1 NATURE, FORM, AND KINDS OF AGENCY ........ ( MSC

ARTICLE 1868 .................................................................................. ( MSC

!"##$%&'()*+(20B0?<:H0(2034:<:=4(=B(<A0(!=4<>.?<(=B(EF04?]6(
MSC7( \0><( ";D0m.( .45( E;;=?:.<0;( HI( !=G><( =B( EPP0./;6( KL(
QSQCQ6( `.4I( 8N6( *ON@6( MSQ7( E/B>05( 9.A4( HI( !E( _( \.]0>:;?A0(
#=<=>04( h0>e0( Ee<:04F0;0//;?A.B<( )\#h+6( KL( **@XMC6( `.4I(
886( *OOM6( MN( -!E2( 8CX6( MSQ7( )8+( "<A0>( 2034:<:=4;6( MSS7( )@+(
L=D.4( R.c6( MSS7( )C+( ZDP=><.4?0( =B( EF04?]6( MSS7( -D:<A6( \0//(
_(!=I6(Z4?I(HI(!E6(KL(**XSSN6(Y0JI(S6(*OOM6(MO(-!E2(@N6(MSM7(
)Q+( 9:;<=>]6( MSM7( )S+( !A.>.?<0>:;<:?;6( MSM7( UA:/P=<<;( HI( UA:/I(
#BFI(!=I6(0<(./I6(CX(UA:/I(CM*6(MSN7()M+(U.><:0;(<=(<A0(!=4<>.?<6(
MSN7(K0/.4=(HI(!=G><(=B(EPP0./;6(RV(@OXQX6(Y0JI(8C6(*ON*6(*X@(
UA:/I( OX6( MSO7( )N+( !.P.?:<]( =B( <A0( U>:4?:P./6( MSO7( )O+( !.P.?:<](
=B(.4(EF04<6(MMX7(#045=g.(HI(20(KGgD.46(@@("IKI(*QXQ6(MMX7(
K0/.4=(HI(!=G><(=B(EPP0./;6(RV(@OXQX6(Y0JI(8C6(*ON*6(MMX7()*X+(
2:;<:4?<:=4;6(MM*7(E<?A0;=4(LI(!=I(HI(#.J0>6(8@(T.4I(*S@6(MM*7(
9.c/0](HI(!G>>]6(MC(Z//I(EI(@XO6(MM@7(-<.<0(HI(U.F06(CX(EDI(2I(
SXN6( MM@7( -A0//( !=I( HI( Y:>0D041;( Z4;I( !=I6( *XX( UA:/I( MQM6( MMQ7(
aG:>=F.(HI(U.>;=4;(9.>5c.>0(!=I6(@N(UA:/I(QX*6(MMN7(K=4g./=(
UG].<(.45(-=4;6(Z4?I(HI(E>?=(EDG;0D04<(!=I6(M8(UA:/I(CX86(MMO7(
)**+( ,EF04<1( .45( ,\>=e0>1( 2:;<:4FG:;A056( MNX7( #.4G0/( \I( &.46(
K>0FF( #I( &0?;=4( _( E/0b.450>( -./5.m.( HI( $5G.>5=( LI( KG//.;(
_(%=>D.(-I(KG//.;6(KL(*C@OMN6(20?I(@6(8XX86(MNXI
ARTICLE 1869 .................................................................................. ( MN*
!"##$%&'()*+(T:45;(=B(EF04?](E??=>5:4F(<=(#.440>(=B(!=4-
;<:<G<:=46( MN*7( 20( /.( U0m.( HI( 9:5./F=6( *S( UA:/I( CQX6( MN*7( R:D(
HI( U0=P/06( RV@C@@N6( %=HI( 8*6( *ONC6( MN87( )8+( T:45;( =B( EF04?](
E??=>5:4F(<=(Y=>D6(MN8I
ARTICLE 1870 .................................................................................. ( MN@
!"##$%&'($bP>0;;(.45(ZDP/:05(EF04?:0;6(MN@I
ARTICLE 1871 .................................................................................. ( MN@
!"##$%&'(E4=<A0>(Y=>D(=B(ZDP/:05(EF04?]6(MN@I

lv
ARTICLE 1872 ................................................................................... ( MN@
!"##$%&'(LG/0;(:B(<A0(U.><:0;(E>0(kEJ;04<l()%=<(kU>0;04<l+6(
MNC7(K.>H0](HI(-?=<<6(O(Z//I(EI(*O6(MNCI
ARTICLE 1873 .................................................................................. ( MNC
!"##$%&'( )*+( Z4B=>D:4F( "<A0>( U0=P/0( =B( <A0( $b:;<04?0( =B(
<A0( EF04?]6( MNQ7( )8+( !=DD04<( =B( `G;<:?0( `I\IRI( L0]0;6( MNQ7(
)@+( U>=J/0D6( MNQ7( )C+( EF04?]( J]( $;<=PP0/6( MNQ7( )Q+( EF04?]( J](
$;<=PP0/(2:;<:4FG:;A05(B>=D(ZDP/:05(EF04?]6(MNSI
ARTICLE 1874 .................................................................................. ( MNS
!"##$%&'()*+(EF04?](<=(-0//(R.45(=>(E4](Z4<0>0;<(&A0>0:46(
MNS7()8+($BB0?<(:B(<A0(E><:?/0(:;([:=/.<056(MNM7(`:D040g(HI(L.J.<6(
@N( UA:/I( @*N6( MNM7( L=;.>:=( -I( `G.<6( 0<( ./I( HI( R.45( &04G>0( E5-
D:4:;<>.<:=46(R(V*MXNX6(`.4I(8N6(*OS*6(MNMI
ARTICLE 1875 .................................................................................. ( MNM
!"##$%&'( )*+( EF04?]( Z;( U>0;GD05( <=( \0( "40>=G;6( MNN7( )8+(
Y=>D( =B( !=DP04;.<:=46( MNN7( Y:0F0( .45( \>=c4( HI( -D:<A6( \0//(
.45( !=I( .45( !=cP0>6( C@( UA:/I( **N6( MNN7( )@+( \>=e0>;6( MNO7( )C+(
!=DP04;.<:=4(=B(\>=e0>;6(MNO7(L0]0;6(0<(./I(HI(#=;iG05.(.45(
<A0(!=G><(=B(EPP0./;6(RVNSOO6(#.](8Q6(*OQS6(Q@("IKI(8*QN6(MOX7(
U0>0g(50(&.F/0(HI(RGg=4(-G>0<](!=I6()!IEI+(@N("IKI(*8*@6(MO*I
ARTICLE 1876 .................................................................................. ( MO8
!"##$%&'(K040>./(.45(-P0?:./(EF04?:0;6(MO8I
ARTICLE 1877 .................................................................................. ( MO8

!"##$%&'( )*+( EF04?]( !=G?A05( :4( K040>./( &0>D;( .45( :4(

-P0?:./(&0>D;6(MO@7()8+("J;0>H.<:=46(MO@7()@+($b.DP/06(MO@7()C+(
$b.DP/0;(=B(E?<;(=B(#0>0(E5D:4:;<>.<:=46(MOCI

ARTICLE 1878 ................................................................................. ( MOC

!"##$%&'()*+(hA04(-P0?:./(U=c0>;(=B(E<<=>40](E>0(%005056(
MOQ7( U%\( HI( !E6( MX( -!E2( @M( )*OOS+6( MOS7( )8+( L0.;=4( B=>( <A0(
LG/06(MOS7()@+(#0.4:4F(=B(k-P0?:./(U=c0>;(=B(E<<=>40]l6(MOS7()C+(
L0(U.>.F>.PA(*6(MOS7(2=D:4:=4(Z4;G>.4?0(!=>PI(HI(!E6(L=5=/B=(
-I( KG0H.>>.( _( Y0>4.45=( EG;<>:.6( KL( *8OO*O6( Y0JI( S6( 8XX86(
MOM7()Q+(L0(U.>.F>.PA(86(MON7()S+(L0(U.>.F>.PA(@6(MON7()M+(L0(
U.>.F>.PA(C6(MON7()N+(L0(U.>.F>.PA(Q6(MON7(\I9I(#.?e06(0<(./I(
HI( !.DP;6( M( UA:/I( QQ@6( MOO7( )O+( L0( U.>.F>.PA( S6( MOO7( )*X+( L0(
U.>.F>.PA(M6(MOO7(LG>./(\.4e(=B(!./==?.4(HI(!=G><(=B(EPP0./;6(
RV@8**S6(EP>I(8*6(*ON*6(NXX7()**+(L0(U.>.F>.PA(N6(NXX7()*8+(L0(
U.>.F>.PA( O6( NXX7( )*@+( L0( U.>.F>.PA( *X6( NXX7( )*C+( L0( U.>.-
F>.PA(**6(NXX7(2:>0?<=>(=B(UGJ/:?(h=>e;(HI(-:4F(`G?=6(0<(./I6(Q@(
UA:/I(8XQ6(NXX7(\.4e(=B(<A0(UA:/I(Z;/.45;(HI(20(!=;<0>6(CM(UA:/I(
QOC6(NX*7()*Q+(L0(U.>.F>.PA(*86(NX*7()*S+(!.;0;6(NX*7(2=D:4F=(
R.=( HI( $;<>0//.( [://=40;VR.=6( KL( *8SMMM6( *XS( -!LE( C86( EP>I(
8O6( *OOO6( NX*7( KG://0>D=( E5>:.4=( HI( L=DG/=( U.4F:/:4.46( KL(

lvi
 *@MCM*6(`G4I(*S6(8XX86(NX*7(#.4G0/(\I(&.46(0<(./I(HI($5G.>5=(
LI( KG//.;( _( %=>D.( -I( KG//.;6( KL( *C@OMN6( 20?I( @6( 8XX86( NX87(
%..c.4(!=DDG4:<](LG>./(\.4e6(Z4?I(HI(!E(_(-P;I(E/B>05=(.45(
E4.J0//0(RGD=6(KL(*8NQM@6(`.4I(*@6(8XX@6(NX8I
ARTICLE 1879 .................................................................................. 802
!"##$%&'()*+(U=c0>(<=(-$RR6(NX@7()8+(U=c0>(<=(#"L&KEK$6(
NXC7()@+(`G>:;P>G504?06(NXC7(\:?=/(-.H:4F;(.45(R=.4(E;;=?:.<:=4(
HI(!E6(0<(./I6(KL(NQ@X86(#.>I(@*6(*ONO6(NXCI
ARTICLE 1880 .................................................................................. 805
!"##$%&'()*+(-P0?:./(U=c0>(<=(!=DP>=D:;06(NXQ7()8+(L0.;=4(
B=>( <A0( E><:?/06( NXS7( )@+( -P0?:./( U=c0>( <=( -GJD:<( <=( ( E>J:<>.-
tion, 806.
ARTICLE 1881 .................................................................................. 806
!"##$%&'( )*+( YG45.D04<./( U>:4?:P/0;( =B( EF04?]6( NXM7( )8+(
$BB0?<;6(NXM7()@+(Z//G;<>.<:H0($b.DP/0;6(NXN7()C+(EG<A=>:<](2:;-
?G;;056(NXO7()Q+(-=D0(!.;0;6(N**7(K0>D.44(.45(!=I(HI(2=4./5-
;=4(-:D(_(!=I6(*(UA:/I(S@6(N**7(2004(HI(U.?:3?(!=DD0>?:./(!=I6(
C8(UA:/I(M@N6(N*87(R:4.4(HI(UG4=6(0<(./I6(@*(UA:/I(8QO6(N*87([://.(
HI(K.>?:.(\=;iG06(CO(UA:/I(*8S6(N*@7(T.<:FJ.e(HI(&.:(9:4F(!=I6(
Q8(UA:/I(S886(N*@7([0/=;=(HI(R.(d>J.4.6(QN(UA:/I(SN*6(N*C7(fG(
$4F(fG(HI(EI!I(L.4;=D(UA:/:PP:40(!=>PI6()!IEI+(CX("IKI(-GPPI6(
EGFI( 8@6( *OC*6( PI( SQ6( N*C7( #.>eA.D( HI( `.45=46( C*( %IfI( 8@Q6(
N*C7(T00/0>($/0?I(!=I(HI(L=5>:FG0g6(CC(UA:/I(*6(N*Q7(!.>.D6(`>I(
HI(R.G>0<.6(RV8NMCX6(Y0JI(8C6(*ON*6(N*Q7()S+(2=?<>:40(=B(EF04?](
J]( %0?0;;:<]6( N*S7( )M+( ,EG<A=>:<]1( 2:;<:4FG:;A05( B>=D( ,U=c0>16(
N*S7()N+(,EG<A=>:<]1(2:;<:4FG:;A05(B>=D(,Z4;<>G?<:=416(N*MI
ARTICLE 1882 .................................................................................. ( N*M
!"##$%&'( )*+( hA04( EF04<1;( U0>B=>D.4?0( =B( EG<A=>:<]( Z;(
200D05(-<://(EG<A=>:g056(N*N7()8+($b.DP/06(N*N7()@+(-./0(.<(.(
R=c0>(=>(9:FA0>(U>:?06(N*N7()C+(\.>6(N*NI
ARTICLE 1883 ................................................................................. 819
!"##$%&'()*+(EF04?](h:<A(.4(d45:;?/=;05(U>:4?:P./6(N*O7()8+(
$b.DP/0(=B(<A0(K040>./(LG/06(N*O7(UA:/I(\.4e(=B(!=DD0>?0(HI(
`=;0(#I(E>G0F=6(RV8QN@SV@M6(`.4I(@*6(*ON*6(*X8(UA:/I(Q@X6(N*O7(
)@+($b.DP/0(=B(<A0($b?0P<:=46(N8X7()C+(hA04(EF04<(&>.4;.?<;(
\G;:40;;(:4(9:;("c4(%.D06(N8X7()Q+(hA04(EG<A=>:g05(EF04<(
\G];(:4(9:;("c4(%.D0(\G<(L0.//](:4(\0A./B(=B(9:;(U>:4?:P./6(
N8X7()S+(hA04(EG<A=>:<](=B(EF04<(:;(2=GJ<BG/6(N8X7()M+(L0F.>5-
:4F(k&A:4F;(\0/=4F:4F(<=(<A0(U>:4?:P./;6l(N8*I

CHAPTER 2 OBLIGATIONS OF THE AGENT ............................ 822

ARTICLE 1884 .................................................................................. 822
!"##$%&'()*+(2G<](=B(EF04<(<=(!.>>]("G<(<A0(EF04?]6(N887(
\.4e(=B(<A0(UA:/I(Z;/.45;(HI(U:405.6(KL(S8CC*6(20?I(*C6(*ONM6(

lvii
 N887( )8+( R:.J:/:<]( =B( R.c]0>( hA=( Y.:/;( <=( U0>B0?<( .4( EPP0./6(
N887( )@+( $BB0?<( =B( U>:4?:P./1;( 20.<A6( N887( )C+( EF04<( hA=( -0//;(
to Himself, 823.
ARTICLE 1885 .................................................................................. 823
!"##$%&'()*+(LG/0(:B(.(U0>;=4(20?/:40;(<A0(EF04?]6(N8@7()8+(
Duty of Owner, 823.
ARTICLE 1886 .................................................................................. 823

!"##$%&'( -<:PG/.<:=4( B=>( EF04<( <=( E5H.4?0( %0?0;;.>](

Funds, 824.

ARTICLE 1887 .................................................................................. 824

!"##$%&'( )*+( EF04<1;( 2G<]( <=( Y=//=c( Z4;<>G?<:=4;6( N8C7( )8+(

$BB0?<(:B(EF04<(Y=//=c;(Z4;<>G?<:=4;6(N8C7()@+(!/.>:<](=B(Z4;<>G?-
<:=4;6(N8Q7()C+(2:BB0>04<(Z4<0>P>0<.<:=4;(L0(Z4;<>G?<:=4;6(N8Q7()Q+(
9=c(Z4;<>G?<:=4;(E>0(<=(\0(!=4;<>G056(N8Q7()S+(9=c($b0?G<:=4(
#.](Y.:/6(N8S7()M+($b?0;;:H0($b0?G<:=46(N8SI
ARTICLE 1888 .................................................................................. 826
!"##$%&'()*+(hA04(EF04?](-A=G/5(%=<(\0(!.>>:05("G<6(N8S7(
(2) Example, 826.
ARTICLE 1889 .................................................................................. ( N8M
!"##$%&'()*+(LG/0(:B(EF04<(U>0B0>;(9:;("c4(Z4<0>0;<;6(N8M7(
)8+($b.DP/06(N8MI
ARTICLE 1890 .................................................................................. ( N8M
!"##$%&'()*+(EG<A=>:<](<=(\=>>=c(=>(R045(#=40]6(N8M7()8+(
\0403<(=B(U>:4?:P./6(N8N7()@+(U>=A:J:<:=4(<=(UG>?A.;06(N8NI
ARTICLE 1891 .................................................................................. 828
!"##$%&'( )*+( 2G<]( =B( EF04<( <=( E??=G4<6( N8N7( 2=D:4F=( HI(
2=D:4F=6(C8(-!LE(*@*6(N8O7()8+(-<:PG/.<:=4($b0DP<:4F(EF04<(
B>=D(2G<](<=(E??=G4<6(N8O7()@+(2G<](<=(20/:H0>(YG45;6(N8O7()C+(
%=( !=V"c40>;A:P( "H0>( YG45;( 20;P:<0( L:FA<( <=( !=DD:;;:=46(
N@X7( )Q+( EF04<( -A=G/5( %=<( U>=3<( B=>( 9:;( "c4( E??=G4<6( N@X7(
)S+( 2=?<>:40;( =4( <A0( 2G<]( <=( E??=G4<6( N@X7( )M+( -=D0( !.;0;6(
N@*7(d4:<05(-<.<0;(HI(T:0406(M(UA:/I(M@S6(N@*7(d4:<05(-<.<0;(HI(
ZFPG.>.6(8M(UA:/I(S*O6(N@*7("^:4.F.(HI($;<.<0(=B(U0>0g6(O(UA:/I(
*NQ6(N@87(-0H0>:4=(HI(-0H0>:4=6(CC(UA:/I(@C@6(N@8I

ARTICLE 1892 .................................................................................. 833

!"##$%&'()*+(EPP=:4<D04<(=B(-GJ;<:<G<0(B=>(<A0(EF04<6(N@@7(
(2) Soundness of the article, 834.

ARTICLE 1893 .................................................................................. 834

!"##$%&'( )*+( hA04( <A0( U>:4?:P./( !.4( -G0( <A0( -GJ;<:<G<06(
N@C7()8+(E><I(*@**()hA=(E>0(\=G45(\](!=4<>.?<;+6(N@QI

lviii
ARTICLE 1894 .................................................................................. 835
!"##$%&'(`=:4<(%=<(-=/:5.>](R:.J:/:<]6(N@QI
ARTICLE 1895 .................................................................................. 835
!"##$%&'(hA04(-=/:5.>:<](9.;(\004(EF>005(dP=46(N@SI
ARTICLE 1896 .................................................................................. 836
!"##$%&'(R:.J:/:<](=B(<A0(EF04<(B=>(Z4<0>0;<6(N@SI
ARTICLE 1897 ................................................................................. 836
!"##$%&'()*+(%=(U0>;=4./(R:.J:/:<](B=>(EF04<6(N@M7()8+(U>=P0>(
U.><:0;(<=(<A0(-G:<6(N@M7(`=H:<=(LI(-./=4F.(HI(h.>40>6(\.>40;(
.45(!=I6(R<5I6(RV88CS6(`.4I(@*6(*OQ*6(N@N7()@+(EG<A=>:<](<=(-0//(
E//(=B(<A0(U>:4?:P./1;(U>=P0><]6(N@O7()C+(EG<A=>:<](<=(EF>00(=4(
Certain Stipulations, 839.
ARTICLE 1898 .................................................................................. 839
!"##$%&'()*+(!=4<>.?<;($4<0>05(Z4<=(:4($b?0;;(=B(EG<A=>:<]6(
N@O7()8+($b.DP/06(NCXI
ARTICLE 1899 .................................................................................. 840
!"##$%&'()*+($BB0?<(=B(EF04<1;(ZF4=>.4?06(NCX7()8+(!=DP/:.4?0(
with Authority and Instruction, 840.
ARTICLE 1900 ................................................................................ 840
!"##$%&'( )*+( E?<( U0>B=>D05( h:<A:4( &0>D;( =B( h>:<<04( EG-
<A=>:<]6(NC*7()8+($b.DP/06(NC*I
ARTICLE 1901 .................................................................................. 841
!"##$%&'($BB0?<(=B(L.<:3?.<:=46(NC8I
ARTICLE 1902 .................................................................................. 842
!"##$%&'( )*+( U>:H.<0( =>( -0?>0<( ">50>;6( NC87( )8+( !.;06( NC87(
!>Gg(HI(!E6(KL(NQSNQ6(-0PI(**6(*OO*6(NC8I
ARTICLE 1903 .................................................................................. 843
!"##$%&'()*+(,!=DD:;;:=4(EF04<1(2034056(NC@7()8+(2:;<:4?-
<:=4(\0<c004(.(!=DD:;;:=4(EF04<(.45(.(\>=e0>6(NC@7()@+($;-
<.J/:;A05(U/.?0(=B(\G;:40;;6(NCC7()C+(U>0;GDP<:=4(.;(<=(hA04(
the Damage to the Goods Occurred, 844.
ARTICLE 1904 .................................................................................. 844
!"##$%&'(2G<](=B(!=DD:;;:=4(EF04<(<=(U/.?0(!=G4<0>D.>e;6(
844.
ARTICLE 1905 .................................................................................. 844
!"##$%&'()*+(-./0(J](<A0(!=DD:;;:=4(EF04<(=4(!>05:<()%=<(
!.;A+6( NCQ7( K>004( [.//0]( U=G/<>]( HI( Z4<0>D05:.<0( EPP0//.<0(
!=G><6( RVCO@OQ6( 20?I( 8S6( *ONC6( NCQ7( )8+( d4<04.J/0( 20B04;0( =B(

lix
 EF04<6(NCQ7()@+(!A=:?0;(K:H04(<=(<A0(U>:4?:P./6(NCQ7()C+($b.D-
ple, 845.
ARTICLE 1906 .................................................................................. 846
!"##$%&'()*+(2G<](=B(EF04<(<=(Z4B=>D(<A0(U>:4?:P./6(NCS7()8+(
L0.;=4(B=>(<A0(R.c6(NCSI
ARTICLE 1907 .................................................................................. 846
!"##$%&'()*+(KG.>.4<00(!=DD:;;:=46(NCS7()8+($b.DP/0(=B(<A0(
UG>P=;06(NCM7()@+(EPP/:?.J:/:<](<=(\=<A(!.;A(.45(!>05:<(-./0;6(
NCM7()C+(hA04(Z4;=/H04?](=B(20J<=>(Z;(%=<(.(20B04;06(NCMI
ARTICLE 1908 .................................................................................. ( NCM
!"##$%&'( )*+( Y.:/G>0( =B( EF04<( <=( !=//0?<( !>05:<;6( NCM7( )8+(
hA04( EF04<( :;( %=<( R:.J/0( :4( !.;0( =B( Y.:/G>0( <=( !=//0?<6( NCN7(
(3) Due Diligence of Agent, 848.
ARTICLE 1909 .................................................................................. 848
!"##$%&'( )*+( L0;P=4;:J:/:<]( %=<( "4/]( B=>( Y>.G5( \G<( E/;=(
B=>(%0F/:F04?06(NCN7()8+(2G<](=B(EF04<(<=(Z4;G>06(NCO7()@+(-=D0(
20?:505(!.;0;6(NCO7(Z4<0>4.<:=4./(Y:/D;()!A:4.+(HI(R]>:?(Y:/D(
$b?A.4F06(S@(UA:/I(MMN6(NCO7(&.4(&:=4F(&0?e(HI(R.(!=D:;:=4(50(
[./=>0;(\=/;.;(](!G.("A(.45(!=I6(SO(UA:/I(C8Q6(NCO7(%0P=DG-
?04=6( 0<( ./I( HI( 90>05:.6( M( UA:/I( QS@6( NQX7( KG<:0>>0g( 90>D.4=;(
HI(">:.(90>D.4=;(.45(!=I6(@X(UA:/I(CO*6(NQX7((EG;<>:.(HI(!=G><(
=B( EPP0./;6( @O( -!LE( Q8M6( NQ*7( !.=:/0( HI( !E6( CC( -!E2( *XCX(
(1993), 851.

CHAPTER 3 OBLIGATIONS OF THE PRINCIPAL .................. 852

ARTICLE 1910 .................................................................................. 852
!"##$%&'()*+(U>:4?:P./1;(2G<](<=(!=DP/](c:<A(EF04<1;(!=D-
D:<D04<;6( NQ87( )8+( L.<:3?.<:=4( J]( U>:4?:P./6( NQ87( !.;06( NQ87(
\05:.(HI(hA:<06(KL(OCXQX6(%=HI(8*6(*OO*6(NQ8I
ARTICLE 1911 .................................................................................. 854
!"##$%&'()*+(R:.J:/:<](=B(U>:4?:P./(\0?.G;0(=B($;<=PP0/6(NQC7(
(2) Solidary Liability, 855.
ARTICLE 1912 .................................................................................. 855

!"##$%&'()*+(E5H.4?:4F(=B(%0?0;;.>](YG45;6(NQQ7()8+(\>=-
e0>1;(Y006(NQQI

ARTICLE 1913 .................................................................................. 855

!"##$%&'( U>:4?:P./( <=( !=DP04;.<0( EF04<( B=>( 2.D.F0;6(

856.
ARTICLE 1914 .................................................................................. 856
!"##$%&'(L:FA<(=B(EF04<(<=(L0<.:4(J](h.](=B(U/05F06(NQSI

lx
 ARTICLE 1915 .................................................................................. 856
!"##$%&'()*+(-=/:5.>](R:.J:/:<](=B(U>:4?:P./;6(NQS7()8+($b.D-
P/0;6(NQS7()@+(!.;06(NQM7(!=4;<.4<0(ED=>(50(!.;<>=(HI(!E6(KL(
**QN@N6(`G/I(*N6(8XX86(NQMI
ARTICLE 1916 .................................................................................. ( NQM
!"##$%&'(ad$-&Z"%(q()hA04(\=<A(U>:4?:P./(.45(EF04<(
!=4<>.?<( c:<A( L0;P0?<( <=( <A0( -.D0( &A:4F+6( NQN7( 2:=;5.5=(
-<.I(L=D.4.(HI(!.>/=;(ZDP0>:=6(0<(./I6(RV*M8NX6(20?I(8O6(*OSQ6(
858.
ARTICLE 1917 .................................................................................. 859
!"##$%&'(R:.J:/:<](=B(U>:4?:P./(:B(EF04<(E?<05(:4(K==5(Y.:<A(
or in Bad Faith, 859.
ARTICLE 1918 .................................................................................. 859
!"##$%&'( hA04( U>:4?:P./( Z;( %=<( R:.J/0( B=>( EF04<1;( $b-
penses, 859.

CHAPTER 4 MODES OF EXTINGUISHMENT

OF AGENCY ............................................................... 860
ARTICLE 1919 .................................................................................. 860
!"##$%&'( )*+( T0]c=>5( B=>( $b<:4FG:;AD04<( =B( <A0( EF04?](
n($2hEL26(NSX7()8+(20.<A6(NS*7(#.4G0/(\G.;=46(0<(./I(HI(#.>:-
.4=(U.4G].;6(*XQ(UA:/I(MOQ6(NS*7(90>D=;.(HI(R=4F.>.6(RVQ8SM6(
"?<I(8M6(*OQ@6(NS*7(%.<:H:5.5(90>>0>.6(0<(./I(HI(RG](T:D(KG.46(
0<(./I6(RV*MXC@6(`.4I(@*6(*OS*6(NS87()@+(2:;;=/G<:=46(NS8I
ARTICLE 1920 .................................................................................. 862
!"##$%&'( )*+( L0H=?.<:=4( J]( U>:4?:P./( =>( EF04?]6( NS87( )8+(
hA04(EF04?](!.44=<(\0(L0H=e05(.<(<A0(U>:4?:P./1;(h://6(NS87(
)@+(EF04<(!.44=<(K040>.//](L0?=H0>(2.D.F0;6(NS@7()C+(T:45;(
=B(L0H=?.<:=46(NS@I
ARTICLE 1921 .................................................................................. 864
!"##$%&'( EF04?]( B=>( !=4<>.?<:4F( c:<A( -P0?:305( U0>;=4;6(
864.
ARTICLE 1922 .................................................................................. 864
!"##$%&'( EF04?]( hA04( &A:>5( U.><:0;( E>0( %=<( -P0?:3056(
864.
ARTICLE 1923 .................................................................................. 864
!"##$%&'($BB0?<(=B(EPP=:4<D04<(=B(.(%0c(EF04<6(NSCI
ARTICLE 1924 .................................................................................. 865
!"##$%&'( )*+( $BB0?<( :B( <A0( U>:4?:P./( 2:>0?</]( #.4.F0;( <A0(
\G;:40;;6(NSQ7()8+(!.;06(NSQ7(!#-(R=FF:4F6(Z4?I(HI(!E(_(2ILI(
EFG:4./5=(!=>PI6(KL(C*C8X6(`G/I(*X6(*OO86(NSQI

lxi
 ARTICLE 1925 .................................................................................. 866
!"##$%&'( L0H=?.<:=4( J]( "40( =B( &c=( =>( #=>0( U>:4?:P./;6(
866.
ARTICLE 1926 .................................................................................. 866
!"##$%&'(LG/0(hA04(-P0?:./(U=c0>(Z;(K>.4<05(<=(E4=<A0>(
Agent, 866.
ARTICLE 1927 .................................................................................. ( NSM
!"##$%&'( )*+( hA04( .4( .F04?]( !.44=<( \0( L0H=e056( NSM7(
\:;.].( R.45( &>.4;P=><.<:=4( !=I6( Z4?I( HI( -.4?A0g6( KL( MCS8@6(
EGFI( @*6( *ONM6( NSN7( )8+( $BB0?<( hA04( kZ4<0>0;<l( &0>D:4.<0;6(
868.
ARTICLE 1928 .................................................................................. 868
!"##$%&'( )*+( h:<A5>.c./( J]( EF04<6( NSN7( )8+( $BB0?<( hA04(
Agent Sues Principal, 869.
ARTICLE 1929 .................................................................................. 869
!"##$%&'(hA04(.(h:<A5>.c4(EF04<(#G;<(-<://(E?<6(NSOI
ARTICLE 1930 .................................................................................. 869
!"##$%&'( )*+( hA04( EF04?]( !=4<:4G0;( $H04( EB<0>( 20.<A(
=B( U>:4?:P./6( NSO7( )8+( EF04?]( !=GP/05( h:<A( .4( Z4<0>0;<6( NMX7(
)@+(%.<G>0(=B(<A0(EF04<1;(Z4<0>0;<6(NMX7()C+(Z4<0>0;<(:;(%=<(<A0(
-A.>0( :4( <A0( U>=3<;( =>( <A0( !=DD:;;:=46( NMX7( )Q+( &A0( $4<:>0(
EF>00D04<(<=(\0(!=4;<>G056(NM*7($G/=F:=(50/(L=;.>:=6(0<(./I(HI(
EJ.5(.45(EJ.56(*XC(UA:/I(SCN6(NM*I
ARTICLE 1931 .................................................................................. ( NM8
!"##$%&'( )*+( $BB0?<( =B( EF04<1;( E?<( h:<A=G<( T4=c/05F0( =B(
<A0(&0>D:4.<:=4(=B(<A0(EF04?]6(NM87()8+(LG/0(:4(!.;0(\G;:40;;(
h.;(E/>0.5](\0FG46(NM@I
ARTICLE 1932 .................................................................................. ( NM@
!"##$%&'()*+(20.<A(=B(<A0(EF04<6(NM@7()8+($BB0?<(=B(EF04<1;(
20.<A(:4(!.;0(=B(EF04?](!=GP/05(c:<A(.4(Z4<0>0;<6(NM@I

Title XI. LOAN ........................................................................................( NMC

)*+( Z4<>=5G?<=>]( !=DD04<6( NMC7( )8+( -?=P0( =B( !>05:<( &>.4;.?-
<:=4;6(NMCI
GENERAL PROVISIONS ....................................................................... ( NMC
ARTICLE 1933 ................................................................................. ( NMC
!"##$%&'()*+(&A0(&c=(T:45;(=B(R=.4;6(NMQ7()8+(R=.4;(d450>(
<A0("/5(R.c6(NMQ7()@+(2:;<:4?<:=4;(\0<c004(#G<GGD(.45(!=D-
D=5.<GD6(NMS7()C+(,!=4;GD.J/01(.45(,%=4V(?=4;GD.J/01(2:;<:4-
FG:;A056(NMS7()Q+(,YG4F:J/01(.45(,%=4VYG4F:J/01(2:;<:4FG:;A056(

lxii
 NMS7()S+(#0.4:4F(=B(,\.:/D04<16(NMM7()M+(U.><:0;(:4(.(\.:/D04<6(
NMM7()N+(!=4;:50>.<:=4(=>(!.G;0(:4(.(\.:/D04<(=B(R=.46(NMM7()O+(
2034:<:=4( =B( ,!>05:<1( .;( EPP/:05( <=( ,R"E%-16( NMM7( )*X+( ,R=.41(
2:;<:4FG:;A05(B>=D(,L04<1(=>(,R0.;01()&=/04<:4=(HI(K=4g./0;6(QX(
UA:/I(QQN+6(NMN7(Z4(L0(KG.>5:.4;A:P(=B(&.DJ=?=6(0<(./I6(@S(UA:/I(
O@O6(NMN7(K=H0>4D04<(HI(UA:/I(-GF.>($;<.<0(20HI(!=I6(@N(UA:/I(
*Q6(NMN7()**+(,R=.41(2:;<:4FG:;A05(B>=D(,2:;?=G4<:4F(=B(.(U.P0>16(
NMO7(90>>0>.(HI(U0<>=PA:/(!=>PI6(KL(CN@CO6(20?I(8O6(*ONS6(NMO7(
)*8+(R=.4(2:;<:4FG:;A05(B>=D(20P=;:<6(NMO7()*@+(,R=.41(2:;<:4-
FG:;A05(B>=D(,Z>>0FG/.>(20P=;:<16(NNX7()*C+(,R=.41(2:;<:4FG:;A05(
B>=D(,-./016(NN*7()*Q+(Y=>D(=B(Z4<0>0;<6(NN*7(90>>0>.(HI(U0<>=PA:/(
!=>PI6( KL( CN@CO6( 20?I( 8O6( *ONS6( NN*7( )*S+( $;?./.<:=4( !/.G;06(
NN*7(Z4;G/.>(\.4e(=B(E;:.(.45(ED0>:?.(HI(-./.g.>6(KL(N8XN86(
#.>I( 8Q6( *ONN6( NN*7( E/D05.( HI( !E6( MX( -!E2( 8CN6( 8QS( -!LE(
292 (1996), 882.
ARTICLE 1934 .................................................................................. 882
!"##$%&'()*+(%.<G>0(=B(<A0(!=4<>.?<(=B(R=.46(NN87()8+(%005(
B=>(20/:H0>]6(NN87()@+(!=4;04<(=B(<A0(U.><:0;6(NN87()C+(!=4;04;G./(
Contract of Future Loans, 883.

CHAPTER 1 COMMODATUM .......................................................... 884

Section 1 NATURE OF COMMODATUM ...................................... 884

ARTICLE 1935 .................................................................................. 884
!"##$%&'( )*+( ,!=DD=5.<GD1( 2034056( NNC7( )8+( Y0.<G>0;( =>(
!A.>.?<0>:;<:?;(=B(!=DD=5.<GD(.;(.(!=4<>.?<6(NNC7()@+(hA.<(
\.:/00()\=>>=c0>+(:4(!=DD=5.<GD(E?iG:>0;6(NNQ7()C+(-P.4:;A(
Terms, 885.
ARTICLE 1936 .................................................................................. 885
!"##$%&'( )*+( -GJ^0?<( #.<<0>( =B( !=DD=5.<GD6( NNQ7( )8+(
Counterpart in the Contract of Lease, 885.

ARTICLE 1937 .................................................................................. 885

!"##$%&'( )*+( U>=P0><:0;( &A.<( #.]( \0( <A0( "J^0?<( =B( !=D-
D=5.<GD6(NNS7()8+($b.DP/0(=B(!=DD=5.<GD(Z4H=/H:4F(R.456(
886.

ARTICLE 1938 .................................................................................. 886

!"##$%&'( \.:/=>( )R0450>+( %005( %=<( \0( <A0( "c40>6( NNS7(

#0>?.5=(.45($J=>.(HI(EFG:/.>6()!IEI+(CQ("IKI(Q<A(-I(**N6(`G4I(
@X6(*OCM6(NNMI

ARTICLE 1939 .................................................................................. ( NNM

!"##$%&'( )*+( U0>;=4./( %.<G>0( =B( !=DD=5.<GD6( NNM7( )8+(
$b.DP/0(=B(<A0(Y:>;<(U.>.F>.PA6(NNN7()@+($b.DP/0(=B(<A0(-0?=45(
Paragraph, 888.

lxiii
 ARTICLE 1940 .................................................................................. 888
!"##$%&'( )*+( 2=0;( \.:/00( 9.H0( L:FA<( <=( d;0( <A0( Y>G:<;j(
NNN7()8+($b.DP/06(NNNI

Section 2 OBLIGATIONS OF THE BAILEE ................................. 889

ARTICLE 1941 .................................................................................. 889
!"##$%&'()*+(2G<](=B(\=>>=c0>(<=(U.](">5:4.>]($bP04;0;6(
NNO7()8+($b.DP/0;6(NNOI
ARTICLE 1942 .................................................................................. 889
!"##$%&'()*+(R:.J:/:<](B=>(R=;;(2G0(<=(.(Y=><G:<=G;($H04<6(
NOX7()8+(L0.;=4(B=>(<A0(R.c6(NOX7()@+(#:;G;0(=>(EJG;06(NO*I
ARTICLE 1943 .................................................................................. 891
!"##$%&'( %=4V/:.J:/:<]( B=>( 20<0>:=>.<:=4( h:<A=G<( Y.G/<6(
891.
ARTICLE 1944 .................................................................................. 891
!"##$%&'( )*+( K040>.//]6( \=>>=c0>( !.44=<( L0<.:46( NO*7( )8+(
L0.;=4(B=>(<A0(R.c6(NO*I
ARTICLE 1945 .................................................................................. 891
!"##$%&'(-=/:5.>](R:.J:/:<](=B(\.:/00;6(NO8I
Section 3 OBLIGATIONS OF THE BAILOR ................................ 892
ARTICLE 1946 .................................................................................. 892
!"##$%&'()*+(K040>.//]6(\.:/=>(!.44=<(20D.45(ZDD05:.<0(
L0<G>46(NO87()8+(L0.;=4(B=>(-0?=45(-04<04?06(Y:>;<(U.>.F>.PA(
)d>F04<(%0?0;;:<]+6(NO87()@+(-G;P04;:=4(=B(<A0(!=4<>.?<6(NO@I(
ARTICLE 1947 .................................................................................. 893
!"##$%&'(U>0?.>:GD6(NO@I
ARTICLE 1948 .................................................................................. 893
!"##$%&'( )*+( $BB0?<( =B( !=DD:;;:=4( =B( E?<( =B( Z4F>.<:<G506(
NO@7()8+(K>=G45;(=B(Z4F>.<:<G506(NO@I
ARTICLE 1949 .................................................................................. 894
!"##$%&'( )*+( $b<>.=>5:4.>]( $bP04;0;6( NOC7( )8+( L0.;=4( B=>(
<A0(-0?=45(U.>.F>.PA()E?<G./(d;0(J](\.:/00+6(NOC7()@+($b.D-
ple, 895.
ARTICLE 1950 .................................................................................. 895
!"##$%&'("<A0>($bP04;0;6(NOQI
ARTICLE 1951 .................................................................................. 895
!"##$%&'( )*+( hA04( \.:/=>( T4=c;( Y/.c;6( NOQ7( )8+( L0.;=4(
B=>(<A0(R.c6(NOQ7()@+(L:FA<(=B(L0<04<:=46(NOS7()C+(%.<G>0(=B(<A0(
Flaws, 896.

lxiv
 ARTICLE 1952 .................................................................................. 896
!"##$%&'( )*+( $BB0?<( =B( \.:/=>1;( EJ.45=4D04<( =>( K:H:4F( =B(
<A0("J^0?<6(NOS7()8+(L0.;=4(B=>(<A0(R.c6(NOSI

CHAPTER 2 SIMPLE LOAN OR MUTUUM ................................. ( NOM

ARTICLE 1953 .................................................................................. ( NOM
!"##$%&'()*+("c40>;A:P(U.;;0;(:4(#G<GGD6(NOM7(L0PGJ/:?(
HI( `=;0( K>:^./5=6( RV8X8CX6( 20?I( @*6( *OSQ6( NOM7( !.>/=;( K0/.4=6(
et al. v. Court of Appeals and Insular Sawmill, Inc., L-39060,
Y0JI( 8C6( *ON*6( NOM7( \=440H:0( HI( !=G><( =B( EPP0./;6( KL( CO*X*6(
"?<I( 8C6( *ON@6( NON7( )8+( -:D:/.>:<]( <=( EJ4=>D./( d;GB>G?<6( NON7(
)@+(\.4e(E??=G4<;6(NON7()C+($BB0?<(=B(#G<G./($>>=>6(NON7(LG>./(
Bank of Caloocan v. Court of Appeals, L- 32116, Apr. 21, 1981,
NON7( )Q+( ,\0A0;<1( R=.4;6( NOO7( U>0;:504<:./( E5V9=?( Y.?<VY:45-
ing Committee on Behest Loans v. Hon. Aniano A. Desierto
)L0?=H0>]( =B( Z//VK=<<04( h0./<A+6( KL( *@X@CX6( **C( -!LE( MXM6(
Oct. 25, 1999, 899.
ARTICLE 1954 .................................................................................. 899

!"##$%&'( )*+( \.><0>( =B( %=4V!=4;GD.J/0( &A:4F;6( NOO7( )8+(

Example, 899.

ARTICLE 1955 .................................................................................. 900

!"##$%&'( )*+( R:.J:/:<]( =B( \=>>=c0>( =B( #=40]6( OXX7( )8+(

Example of Second Paragraph (Loan of Things Other Than
#=40]+6(OXXI

ARTICLE 1956 .................................................................................. 901

!"##$%&'()*+(Y=>D./:<](B=>(Z4<0>0;<()B=>(d;0(=B(<A0(#=40]+6(
OX*7()8+($b.DP/06(OX*7()@+(T:45;(=B(Z4<0>0;<6(OX*7()C+(9=c(Z4-
<0>0;<( E>:;0;6( OX*7( )Q+( hA04( Z4<0>0;<( $.>4;( Z4<0>0;<6( OX*7( )S+(
Z4<0>0;<( J]( h.]( =B( 2.D.F0;6( OX87( )M+( !=4;=/:5.<:=46( OX@7( )N+(
#G4:?:P./(!=>P=>.<:=4;(E>0(R:.J/0(B=>(Z4<0>0;<6(OX@7()O+(Z4<0>-
0;<(2G>:4F(<A0(#=>.<=>:GD(R.c;6(OX@7()*X+(!=DPG<.<:=4;(B=>(
!=DP04;.<=>]( 2.D.F0;6( OXC7( )**+( -=D0( !.;0;6( OXS7( %.eP:/(
.45( -=4;6( 0<( ./I( HI( !E6( KL( CMNS*6( L0;=/G<:=4( =4( #=<:=4( B=>(
L0?=4;:50>.<:=46(OXS7(#=4g=46(0<(./I(HI(ZE!(.45(&A0=(9I(2.H:0;(
_( !=I6( Y.>( $.;<( R<5I6( KL( M8N8N6( `.4I( @*6( *ONO6( OXM7( E4=<4:=(
&.4( HI( !E( _( !G/<G>./( !04<0>( =B( <A0( UA:/;I6( KL( **S8NQ6( "?<I(
*O6(8XX*6(OXMI

ARTICLE 1957 .................................................................................. ( OXM

!"##$%&'()*+(d;G>](R.c(-A=G/5(%=<(\0(!:>?GDH04<056(OXM7(
)8+( hA.<( !=4;<:<G<0;( d;G>]6( OXN7( 90>>0>.( HI( U0<>=PA:/( !=>PI6(
KL( CN@CO6( 20?I( 8O6( *ONS6( OXN7( )@+( L0P0./( =B( d;G>]( R.c6( OXN7(
R:.D(R.c(HI("/]DP:?(-.cD://(!=I(.45I($/:4=(R00(!A:6(RV@XMM*6(
#.](8N6(*ONC6(OXNI

lxv
 ARTICLE 1958 .................................................................................. 908
!"##$%&'(20<0>D:4.<:=4(=B(Z4<0>0;<(:B(:4(T:456(OXOI
ARTICLE 1959 .................................................................................. 909
!"##$%&'( )*+( hA04( E??>G05( Z4<0>0;<( $.>4;( Z4<0>0;<6( OXO7(
)8+(!=DP=G45(Z4<0>0;<6(OXO7()@+(d;G>](R.c(%=<([:=/.<056(OXO7(
)C+( hA04( !=DP=G45( Z4<0>0;<( !.44=<( \0( 20D.45056( O*X7( )Q+(
L0.;=4( hA]( !=DP=G45( Z4<0>0;<;( E>0( %=<( E//=c05( $b?0P<( :4(
<A0( !.;0;( U>=H:505( B=>( J]( R.c6( O*X7( )S+( !.;0;6( O**7( E4<=4:=(
&.4( HI( !E( _( !G/<G>./( !04<0>( =B( <A0( UA:/;I6( KL( **S8NQ6( "?<I(
19, 2001, 911.
ARTICLE 1960 .................................................................................. 911
!"##$%&I(U.]D04<(=B(Z4<0>0;<(hA0>0(&A0>0(Z;(%=(-<:PG/.-
tion, 911.
ARTICLE 1961 .................................................................................. 912
!"##$%&'( )*+( d;G>]( R.c6( O*87( )8+( LG/0;( =4( !=4;<>G?<:=46(
O*87()@+(!>:D:4./(R:.J:/:<]6(O*87()C+(hA04(d;G>](R.c(2=0;(%=<(
EPP/]6(O*@7()Q+(!=DP=G45(Z4<0>0;<6(O*@7()S+(E5H.4?0(Z4<0>0;<6(
O*@7()M+(9=c(#G?A(Z4<0>0;<(!.4(20J<=>(L0?=H0>6(O*@7(-.4?A0g(
HI(\G04H:.^06(KL(QM@*C6(%=HI(8O6(*ON@6(O*C7()N+(R.cBG/(Z4<0>0;<(
L.<0;6(O*Q7()O+(!04<>./(\.4e(!:>?G/.>(C*S6(O*Q7(U:/:P:4.;(\.4e(
HI(!E6(C@(-!E2(OOX()*OO@+6(O*Q7()*X+(!.;06(O*Q7(E/D05.(HI(!E6(
MX(-!E2(8CN()*OOS+6(O*Q7(-P;I(UG0><=(HI(!=G><(=B(EPP0./;6(KL(
138210, Jun. 13, 2002, 916.

Title XII. DEPOSIT ................................................................................. ( O*M

CHAPTER 1 DEPOSIT IN GENERAL AND

ITS DIFFERENT KINDS ......................................... ( O*M

ARTICLE 1962 .................................................................................. ( O*M

!"##$%&'()*+(U>=H:;:=4;(:4(<A0(!=50(=B(!=DD0>?06(O*M7()8+(
hA04(!=4<>.?<(=B(20P=;:<(:;(U0>B0?<056(O*M7()@+(UG>P=;0;(=B(<A0(
!=4<>.?<6( O*M7( )C+( T:45;( =B( 20P=;:<;6( O*N7( )Q+( !A.>.?<0>:;<:?;(
=B( <A0( !=4<>.?<( =B( 20P=;:<6( O*N7( )S+( ,20P=;:<1( 2:;<:4FG:;A05(
B>=D( ,-./01( .45( ,\.><0>16( O*O7( )M+( ,20P=;:<1( .45( ,!=DD=5.<GD1(
2:;<:4FG:;A056( O*O7( )N+( ,20P=;:<1( 2:;<:4FG:;A05( B>=D( ,EF04?]16(
O*O7()O+(\./.4?0(=B(.(!=DD:;;:=4(E??=G4<6(O8X7()*X+(E5H.4?0(
Partial Payment in Sales, 920.
ARTICLE 1963 .................................................................................. 920
!"##$%&'()*+(!=4;04;G./(!=4<>.?<(<=(!=4;<:<G<0(.(20P=;:<6(
O8X7()8+(%0?0;;:<](=B(.4(EF>00D04<6(O8*I
ARTICLE 1964 .................................................................................. 921
!"##$%&'(2:;<:4?<:=4;(\0<c004(,`G5:?:./1(.45(,$b<>.^G5:?:./1(
Deposits, 921.

lxvi
 ARTICLE 1965 .................................................................................. 922
!"##$%&'()*+(!=DP04;.<:=4(:4(.(20P=;:<6(O887()8+(U>=J/0D6(
O887()@+(hA04(!=4<>.?<(Z;(L0.//]("40(=B(R=.46(O88I
ARTICLE 1966 .................................................................................. 922
!"##$%&'()*+(hA]("4/](#=H.J/0(&A:4F;(#.](\0(<A0("J^0?<(
=B(.(20P=;:<6(O8@7()8+(-0>H:?0;(=B(.(h.<?AD.46(O8@7()@+(-0iG0;-
<>.<:=4(=>(E<<.?AD04<(=B(L0./(U>=P0><:0;6(O8@I
ARTICLE 1967 .................................................................................. 923
!"##$%&'(T:45;(=B($b<>.^G5:?:./(20P=;:<6(O8@I

CHAPTER 2 VOLUNTARY DEPOSIT ............................................ 924

Section 1 GENERAL PROVISIONS ................................................ 924
ARTICLE 1968 .................................................................................. 924
!"##$%&'()*+(,[=/G4<.>](20P=;:<1(2034056(O8C7()8+(L0.;=4;(
B=>( <A0( Y:>;<( -04<04?06( O8C7( )@+( 20P=;:<=>( %005( %=<( \0( <A0(
"c40>6( O8C7( )C+( ,Z4<0>P/0.50>1( 2034056( O8Q7( )Q+( $b.DP/0( =B(
Interpleader, 925.
ARTICLE 1969 .................................................................................. 925
!"##$%&I(Y=>D(=B(<A0(!=4<>.?<(=B(20P=;:<6(O8QI
ARTICLE 1970 .................................................................................. 925
!"##$%&I( )*+( LG/0( hA04( 20P=;:<=>( Z;( Z4?.P.?:<.<056( O8Q7(
)8+( !.P.?:<]( =B( 20P=;:<.>]6( O8S7( )@+( [./:5:<]( =B( <A0( !=4<>.?<(
Entered Into, 926.
ARTICLE 1971 .................................................................................. 926
!"##$%&'( )*+( LG/0( :B( 20P=;:<.>]( Z;( Z4?.P.?:<.<056( O8S7( )8+(
L0D05](=B(20P=;:<=>6(O8M7()@+([./:5:<](=B(<A0(!=4<>.?<($4<0>05(
Z4<=6(O8MI
Section 2 OBLIGATIONS OF THE DEPOSITARY ...................... ( O8M
ARTICLE 1972 .................................................................................. ( O8M
!"##$%&'()*+(U>:4?:P./("J/:F.<:=4;(=B(<A0(20P=;:<.>]6(O8M7()8+(
2G<](=B(-.B0e00P:4F6(O8M7()@+($BB0?<(:B(20P=;:<(Z;(K>.<G:<=G;(=>(
"40>=G;6(O8N7()C+("c40>(\0.>;(R=;;6(O8N7()Q+(2G<](=B("c40>(=B(
L:?0(#://6(O8N7()S+(KG.>5:.4(.;(-G?A6(Z;(%=<(20P=;:<.>]6(O8NI
ARTICLE 1973 .................................................................................. 929
!"##$%&'()*+(20P=;:<(h:<A(.(&A:>5(U0>;=46(O8O7()8+(L0.;=4(
of the First Sentence of the Article, 929.
ARTICLE 1974 .................................................................................. 929
!"##$%&'()*+(hA04(20P=;:<.>](#.](!A.4F0(<A0(h.](=B(<A0(
20P=;:<6(O@X7()8+(L0.;=4(B=>(<A0(R.c6(O@XI

lxvii
ARTICLE 1975 .................................................................................. 930
!"##$%&'()*+( 2G<](=B(20P=;:<.>](<=( !=//0?<( Z4<0>0;<( =4( Z4-
<.4F:J/0(U>=P0><:0;6(O@X7()8+(2G<](<=(!=//0?<(<A0(!.P:<./(E/;=6(
O@*7()@+(L0.;=4(B=>(<A0(-0?=45(U.>.F>.PA6(O@*I

ARTICLE 1976 .................................................................................. 931

!"##$%&'( ( )*+( L:FA<( =B( 20P=;:<.>]( <=( !=DD:4F/06( O@*7( )8+(

L0.;=4(B=>(<A0(U>=P=><:=4./(!=V=c40>;A:P6(O@*I

ARTICLE 1977 .................................................................................. 932

!"##$%&'(K040>.//]6(20P=;:<.>](!.44=<(d;06(O@8I

ARTICLE 1978 .................................................................................. 932

!"##$%&( )*+( hA04( 20P=;:<.>]( 9.;( U0>D:;;:=4( <=( d;06(
O@87( )8+( Z>>0FG/.>( 20P=;:<6( O@@7( )@+( U>0;GDP<:=46( O@@7( \.>=4(
HI(2.H:56(Q*(UA:/I(*6(O@@7()C+(20P=;:<(=B(U./.]6(O@C7(20/F.5=(HI(
\=440H:0(.45(E>.450g6(8@(UA:/I(@XN6(O@C7()Q+(hA04(20P=;:<(=B(
#=40]( Z;( L0.//]( .( R=.46( O@C7( )S+( %=( U>0;?>:P<:=4( =B( 20D.45(
B=>(L0<G>46(O@CI
ARTICLE 1979 .................................................................................. 935
!"##$%&'(R:.J:/:<](B=>(Y=><G:<=G;($H04<6(O@QI
ARTICLE 1980 .................................................................................. 935
!"##$%&'()*+(\.4e(20P=;:<;6(O@Q7(U2Z!(HI(!E6(EJ.56(0<(./I6(
KL(*8SO**6(EP>I(8X6(8XX@6(O@S7(LG>./(\.4e(=B(!./==?.4(HI(!=G><(
=B(EPP0./;6(RV@8**S6(EP>I(8*6(*ON*6(O@M7("4F(-:P(HI(U>G504<:./(
\.4e(.45(&>G;<(!=I6(KL(8M@8N6(#.](@X6(*ON@6(O@M7(K=4g./0;(
HI(UA:/:PP:40(%.<:=4./(\.4e6(KL(@@@8X6(#.](@X6(*ON@6(O@N7()8+(
2:;<>0;;05(\.4e;6(O@N7(-0>>.4=(HI(!04<>./(\.4e6(RV@XQ**6(Y0JI(
*C6(*ONX6(O@N7()@+($b0DP<:=4(B>=D(U.]D04<(=B(Z4<0>0;<6(O@N7(&A0(
"H0>;0.;(\.4e(=B(#.4:/.(HI(!=G><(=B(EPP0./;6(RVCO@Q@6(`G4I(**6(
*ON*6(O@N7()C+(&A0(\=G4?:4F(!A0?e;(R.c6(O@O7(\.<.;(U.DJ.4;.(
\/FI(886(O@O7(EI#I(XXV**VX*V-!6(OC*7($/H:>.(fG("A(HI(!E(.45(
U0=P/0(=B(<A0(UA:/;I6(KL(*8Q*OM6(`G4I(S6(8XX@6(OC8I
ARTICLE 1981 .................................................................................. 942
!"##$%&'( &A0( 20P=;:<.>]( #G;<( T00P( <A0( -0?>0<( =B( <A0(
Deposit, 942.
ARTICLE 1982 .................................................................................. 943
!"##$%&'(%0?0;;:<](=B("P04:4F(R=?e05(\=b6(OCCI
ARTICLE 1983 .................................................................................. 944
!"##$%&'(L0<G>4(=B(<A0(&A:4F(20P=;:<056(OCCI
ARTICLE 1984 .................................................................................. 944
!"##$%&'(20P=;:<.>](!.44=<(20D.45(U>==B(=B("c40>;A:P6(
945.

lxviii
 ARTICLE 1985 .................................................................................. 945
!"##$%&'(&c=(=>(#=>0(20P=;:<=>;6(OCQI
ARTICLE 1986 .................................................................................. 945
!"##$%&'(LG/0(:B(20P=;:<=>(\0?=D0;(Z4;.406(OCSI
ARTICLE 1987 .................................................................................. 946
!"##$%&'()*+($b.DP/0(=B(U.>.F>.PA(*6(OCS7()8+($b.DP/0(=B(
Paragraph 2, 946.
ARTICLE 1988 .................................................................................. 946
!"##$%&'( )*+( hA04( 20P=;:<( #G;<( \0( L0<G>4056( OCM7( )8+(
$b?0P<:=4;( <=( <A0( K040>./( LG/06( OCM7( )@+( R:.J:/:<]( B=>( 2.D-
.F0;6(OCMI
ARTICLE 1989 .................................................................................. 948
!"##$%&'( )*+( `G;<:B:.J/0( L0.;=4( B=>( L0<G>4:4F6( OCN7( )8+(
Problem, 948.
ARTICLE 1990 .................................................................................. 949
!"##$%&'(R=;;(&A>G(Y=>?0(#.^0G>0(=>(K=H0>4D04<(">50>6(
949.
ARTICLE 1991 .................................................................................. 949
!"##$%&'(-./0(J](90:>6(OCOI
Section 3 OBLIGATIONS OF THE DEPOSITOR ........................ 950
ARTICLE 1992 .................................................................................. 950
!"##$%&'(2G<](=B(20P=;:<=>(<=(L0:DJG>;06(OQXI
ARTICLE 1993 .................................................................................. 950
!"##$%&'( )*+( L0:DJG>;0D04<( \0?.G;0( =B( R=;;6( OQ*7( )8+(
Exceptions, 951.
ARTICLE 1994 .................................................................................. 951
!"##$%&'( )*+( L:FA<( =B( L0<04<:=4( J]( 20P=;:<.>]6( OQ87( )8+(
U/05F0(J]("P0>.<:=4(=B(R.c6(OQ87()@+(aG0>]6(OQ8I
ARTICLE 1995 .................................................................................. 952
!"##$%&'()*+($b<:4FG:;AD04<(=B(20P=;:<6(OQ@7()8+($BB0?<(=B(
20.<A6(OQ@7()@+(aG0>]6(OQ@7()C+("<A0>(K>=G45;6(OQ@I
CHAPTER 3 NECESSARY DEPOSIT ............................................. 954
ARTICLE 1996 .................................................................................. 954
!"##$%&'()*+($b.DP/0(=B(%0?0;;.>](20P=;:<(#.50(:4(!=DP/:-
.4?0(h:<A(.(R0F./("J/:F.<:=46(OQC7()8+($b.DP/0(=B(.(%0?0;;.>](
20P=;:<(#.50(=4(<A0("??.;:=4(=B(.(!./.D:<]6(OQC7()@+(&c=("<A0>(
T:45;(=B(%0?0;;.>](20P=;:<;6(OQQI

lxix
 ARTICLE 1997 .................................................................................. 955
!"##$%&'()*+(K=H0>4:4F(LG/0;(B=>(20P=;:<;(#.50(:4(!=DP/:-
.4?0(c:<A(.(R0F./("J/:F.<:=46(OQQ7()8+(LG/0;(K=H0>4:4F(20P=;:<;(
#.50(\0?.G;0(=B(.(!./.D:<]6(OQQ7()@+(E><I(8*SN6(OQQI
ARTICLE 1998 .................................................................................. 956
!"##$%&'()*+($b.DP/0(=B(R:.J:/:<](=B(9=<0/(=>(Z44Ve00P0>;6(
OQS7()8+(,Z44e00P0>1(2034056(OQS7()@+(,"??.;:=4./($4<0><.:4D04<1(
2034056(OQS7()C+(,&>.H0//0>;1(2034056(OQS7()Q+(L0.;=4;(B=>(<A0(
R:.J:/:<](=B(<A0(9=<0/;(=>(Z44;6(OQM7()S+(hA04(R:.J:/:<](\0F:4;6(
OQM7()M+(#0.4:4F(=B($BB0?<;6(OQM7()N+(%.<G>0(=B(U>0?.G<:=4;(<=(
\0(K:H04(<=(<A0(KG0;<;6(OQMI
ARTICLE 1999 .................................................................................. 958
!"##$%&'(R:.J:/:<]($b<045;(<=("J^0?<;(:4(E440b0;6(OQNI
ARTICLE 2000 .................................................................................. 958
!"##$%&'( )*+( LG/0;( B=>( R:.J:/:<]6( OQN7( )8+( %=4VR:.J:/:<]( B=>(
Y=>?0(#.^0G>06(OQN7()@+(U>=J/0D6(OQNI
ARTICLE 2001 .................................................................................. 959
!"##$%&'()*+(L=JJ0>](&A>=GFA(Y=>?0(dP=4(&A:4F;6(OQO7()8+(
aG0>]6(OQO7()@+(L0.;=4(B=>(E><I(8XX*6(OQOI
ARTICLE 2002 .................................................................................. 960
!"##$%&'( )*+( Z4;<.4?0;( hA04( 9=<0/( T00P0>( Z;( %=<( R:.J/06(
OSX7()8+($b.DP/0;6(OSXI
ARTICLE 2003 .................................................................................. 960
!"##$%&'($BB0?<(=B(%=<:?0;(%0F.<:4F(R:.J:/:<]6(OSXI
ARTICLE 2004 .................................................................................. 961
!"##$%&'()*+(L:FA<(=B(L0<04<:=4(K:H04(<=(9=<0/VT00P0>6(OS*7(
)8+(L:FA<(<=(-0//6(OS*7()@+(hA](<A0(L:FA<(<=(L0<.:4(Z;(K:H046(OS*7(
)C+(hA04(R:04(=>(L0<04<:=4(2=0;(%=<($b:;<6(OS*I

CHAPTER 4 SEQUESTRATION OR JUDICIAL

DEPOSIT ..................................................................... 962
ARTICLE 2005 .................................................................................. 962
!"##$%&'(%.<G>0(=B(K.>4:;AD04<(=>(`G5:?:./(20P=;:<6(OS8I

ARTICLE 2006 .................................................................................. 962

!"##$%&'("J^0?<(=B(`G5:?:./(-0iG0;<>.<:=46(OS8I

ARTICLE 2007 .................................................................................. 963

!"##$%&'()*+(hA04(20P=;:<.>](!.4(\0(L0/:0H05(=B(R:.J:/:<]6(
OS@7()8+(hA04(U>=P0><:0;(!0.;0(<=(\0(:4(!G;<=5:.(R0F:;6(OS@I

lxx
 ARTICLE 2008 .................................................................................. 963
!"##$%&'(&=($b0>?:;0(2:/:F04?0(=B(.(K==5(Y.<A0>6(OS@I
ARTICLE 2009 .................................................................................. 963
!"##$%&'(-GPP/0<=>](LG/0;(:4(LG/0;(=B(!=G><6(OS@I

TITLE XIII .................................................................................................. 964

ALEATORY CONTRACTS ..................................................................... 964
K$%$LER(UL"[Z-Z"%-6(OSCI(( ( (
ARTICLE 2010 .................................................................................. 964
!"##$%&'( )*+( $/0D04<( =B( L:;e6( OSC7( )8+( T:45;( =B( E/0.<=>](
!=4<>.?<;6( OSC7( #./.].4( Z4;G>.4?0( !=I6( Z4?I( HI( E>4./5=6( KL(
SMN@Q6("?<I(*86(*ONM6(OSC7()@+(2:;<:4?<:=4(\0<c004(.4(E/0.<=>](
Contract and a Contract with a Suspensive Condition, 965.
CHAPTER 1 INSURANCE ................................................................ 966
ARTICLE 2011 ................................................................................. 966
!"##$%&'()*+(U>:4?:P./(R.c(=4(Z4;G>.4?06(OSS7(E?D0(-A=0(
LGJJ0>(.45(U/.;<:?(!=>P=>.<:=4(HI(!=G><(=B(EPP0./;6(R(QSM*N6(
`.4I(*M6(*ONQ6(OSS7(#.]0>(-<00/(U:P0(!=>PI(_(9=4F(T=4F(K=H-
ernment Supplies Dept. v. CA, South Sea Surety & Insurance
!=I6(Z4?I(_(!A.><0>(Z4;G>.4?0(!=>PI6(KL(*8CXQX6(`G4I(*O6(*OOM6(
N@( -!E2( NN*6( OSS7( )8+( 203?:04?]( :4( <A0( Z4;G>.4?0( R.c6( OSM7(
E;;=?:.<:=4(=B(\.P<:;<(B=>(h=>/5($H.4F0/:;D6(Z4?I(HI(Y:0/5D.41;(
Z4;G>.4?06( KL( 8NMM86( -0PI( 8*6( *ON@6( OSM7( )@+( \0403?:.>]( Z;(
%=<(<A0(2=400(:4(.(2=4.<:=46(OSM7()C+(LG/0(:B(\0403?:.>](Z;(.(
!=DPG/;=>](90:>6(OSM7()Q+(hA=(!=//0?<;(<A0(Z4;G>.4?0(Z450D-
4:<]j6( OSN7( )S+( U>=J/0D6( OSN7( )M+( $BB0?<( =B( U>050?0.;0( =B( <A0(
\0403?:.>]6( OSN7( )N+( E??:504<( Z4;G>.4?06( OSO7( )O+( #0.;G>0( =B(
<A0( [0;<05( Z4<0>0;<( =B( Z4;G>.4?0( \0403?:.>]6( OSO7( )*X+( E?<( =B(
Surrendering an Insurance Policy is an Act of Disposition or
alienation, 969.
ARTICLE 2012 .................................................................................. ( OMX
!"##$%&'()*+(2:;iG./:305(2=400;(!.44=<(\0(\0403?:.>:0;6(
OMX7()8+(%=(L0<>=.?<:H0($BB0?<(=B(<A0(E><:?/06(OMXI
CHAPTER 2 GAMBLING .................................................................. ( OM*
ARTICLE 2013 .................................................................................. ( OM*
!"##$%&'()*+(K.D0(=B(!A.4?0(2034056(OM*7()8+(LG/0(:4(!.;0(
=B(2=GJ<6(OM*7()@+($b.DP/0;(=B(K.D0;(=B(!A.4?06(OM*7()C+(-=D0(
Y=>D;(=B(R0F./(K.DJ/:4F6(OM*I
ARTICLE 2014 .................................................................................. ( OM8
!"##$%&'()*+(%=(!=G><(E?<:=4(J](h:440>6(OM87()8+(U>=D:;-
;=>](%=<0(Z;;G05(\0?.G;0(=B(K.DJ/:4F6(OM87()@+(#=40](R04<(<=(

lxxi
 .(K.DJ/0>6(OM87()C+(Z4;<.4?0(hA0>0(E><:?/0(:;(%=<(EPP/:?.J/06(
OM87(\.4(HI(ZE!6(KL(SS8M86("?<I(*M6(*ONS6(OM8I
ARTICLE 2015 .................................................................................. ( OM@
!"##$%&'($BB0?<(=B(!A0.<:4F6(OM@I
ARTICLE 2016 .................................................................................. ( OM@
!"##$%&'( LG/0( :B( R=;0>( 2=0;( %=<( \>:4F( <A0( E?<:=4( <=( L0-
?=H0>6(OM@I
ARTICLE 2017 .................................................................................. ( OMC
!"#$%&'(\0<;(#.50(J](K.D0(h.<?A0>;6(OMCI
ARTICLE 2018 .................................................................................. ( OMC
!"##$%&'(hA0>0(<A0(&>.4;.?<:=4;(U.><.e0(=B(K.DJ/:4F(.45(
&AG;([=:56(OMCI
ARTICLE 2019 .................................................................................. ( OMQ
!"##$%&'()*+(U>=A:J:<:=4(=4(\0<<:4F6(OMQ7()8+(\0.G<](!=4<0;<6(
">.<=>:?./(!=4<0;<6(OMQ7()@+(L0H:;05(U04./(!=506(OMQI
ARTICLE 2020 .................................................................................. ( OMQ
!"##$%&'(!A0;;(:;(5034:<0/](4=<(.(F.D0(=B(?A.4?06(OMQI

CHAPTER 3 LIFE ANNUITY ........................................................... ( OMS

ARTICLE 2021 .................................................................................. ( OMS
!"##$%&'()*+($b.DP/0(=B(R:B0(E44G:<]6(OMS7()8+(R:B0(E44G:<](
2:;<:4FG:;A05(B>=D(R:B0(Z4;G>.4?06(OMSI
ARTICLE 2022 .................................................................................. ( OMS
!"##$%&'()*+(dP=4(hA=;0(R:B0(<A0(E44G:<](#.](\0(!=4;<:-
<G<056(OMM7()8+(hA=(#.](\0(<A0(\0403?:.>]6(OMMI
ARTICLE 2023 .................................................................................. ( OMM
!"##$%&'(hA04(<A0(!=4<>.?<(=B(R:B0(E44G:<](Z;([=:56(OMMI
ARTICLE 2024 .................................................................................. ( OMM
!"##$%&'($BB0?<(:B(<A0(Z4?=D0(2G0(Z;(%=<(U.:56(OMMI
ARTICLE 2025 .................................................................................. ( OMN
!"##$%&'($BB0?<(:B(\0403?:.>](2:0;6(OMNI
ARTICLE 2026 .................................................................................. ( OMN
!"##$%&'(E<<.?AD04<(=B(<A0(E44G:<]6(OMNI
ARTICLE 2027 .................................................................................. ( OMN
!"##$%&'(U>==B(=B($b:;<04?0(=B(U0>;=4(dP=4(hA=;0(R:B0(<A0(
E44G:<](9.;(\004(!=4;<:<G<056(OMNI

lxxii
Title XIV. COMPROMISES OR ARBITRATIONS ............................ ( OMO

CHAPTER 1 COMPROMISES .......................................................... ( OMO

ARTICLE 2028 .................................................................................. ( OMO
!"##$%&'( )*+( $;;04?0( =B( !=DP>=D:;06( OMO7( )8+( 2034:<:=4(
=B( !=DP>=D:;06( OMO7( )@+( !A.>.?<0>:;<:?;6( OMO7( T.:;.A.4( HI(
-.>D:04<=6( RVCMNQ@6( %=HI( *S6( *ONC6( ONX7( )C+( T:45;6( ONX7( )Q+(
hA04(EF>00D04<(Z;(%=<(L0.//](.(!=DP>=D:;06(ONX7(#0>?05(HI(
L=D.4(!.<A=/:?(E>?AJ:;A=P6(RV8CS*C6( EGFI( *M6( *OSM6( ONX7( )S+(
!.;0;6( ON*7( R.45=:/( L0;=G>?0;( !=>PI6( 0<( ./I( HI( 9=4I( &04;G.46(
0<(./I6(KL(MMM@@6(20?I(8X6(*ONN6(ON*7(L0B=>D:;<(d4:=4(=B(LI\I(
R:40>6(Z4?I(HI(%RL!6(KL(*8XCN86(`.4I(8M6(*OOM6(MN(-!E2(@MM6(
981.
ARTICLE 2029 .................................................................................. 982
!"##$%&'( )*+( 2G<]( =B( <A0( !=G><( <=( U0>;G.50( R:<:F.4<;( <=(
!=DP>=D:;06( ON87( )8+( L:FA<( =B( E<<=>40]( <=( !=DP>=D:;0( B=>(
9:;(!/:04<6(ON87()@+(&A0(!.;0(=B(L:?A.>5(K=>5=46(ON87(L:?A.>5(
K=>5=4(HI(!E6(KL(*@COXX6(-0PI(*6(*OON6(ON8I
ARTICLE 2030 .................................................................................. 982
!"##$%&'()*+(-G;P04;:=4(=B(!:H:/(E?<:=4(=>(U>=?005:4F6(ON@7(
)8+(#=<:=4(<=(2:;D:;;6(ON@7()@+(U=;<P=40D04<;6(ON@7()C+("BB0>;(
to Arbitrate Not Included, 983.
ARTICLE 2031 .................................................................................. 984
!"##$%&'(#:<:F.<:=4(=B(2.D.F0;6(ONCI
ARTICLE 2032 .................................................................................. 984
!"##$%&'( )*+( hA04( !=G><( EPP>=H./( :;( $;;04<:./6( ONC7( )8+(
"<A0>(LG/0;6(ONCI
ARTICLE 2033 .................................................................................. 985
!"##$%&'(LG/0;(B=>(!=DP>=D:;0($4<0>05(Z4<=(J](`G>:5:?./(
Persons, 985.
ARTICLE 2034 .................................................................................. 985
!"##$%&'( )*+( K040>.//]6( %=( !=DP>=D:;0( =4( !>:D:4./( E;-
P0?<6( ONQ7( )8+( hA04( !=DP>=D:;0( Z;( E//=c056( ONQ7( L0PGJ/:?( HI(
#.>?0/.(\I(K.>.]6(RV8*C*S6(20?I(@*6(*OSQ6(ONS7(2.;.//.6(->I(HI(
!YZ6(KL(Q*CS*6(EP>I(8S6(*OO*6(ONS7()@+(!=DP>=D:;0(:4(!>:D:4./(
Tax Cases, 988.
ARTICLE 2035 .................................................................................. 988
!"##$%&'( )*+( aG0;<:=4;( =4( hA:?A( &A0>0( !.4( \0( %=( [./:5(
!=DP>=D:;06( ONN7( )8+( -<.<G;6( ONN7( &.46( 0<( ./I( HI( L0PGJ/:?6( RV
8MM*@6(Y0JI(*X6(*ON*6(ONN7()@+(L0?=F4:<:=4(=B(Z//0F:<:D.<0(!A:/56(
ONO7()C+(-GPP=><6(ONO7()Q+(`G>:;5:?<:=4(=B(!=G><;6(ONO7("40(90.><(
-P=><:4F(!/GJ6(Z4?I(HI(&A0(!=G><(=B(EPP0./;6(KL(Q@MOX6("?<I(8@6(

lxxiii
 *ON*6( ONO7( -=/:5GD( HI( -<.I( #.>:.6( E5D:4:;<>.<:H0( !.;0( *NQN6(
Dec. 26, 1984, 989.
ARTICLE 2036 ................................................................................. 990
!"##$%&'( )*+( hA.<( .( !=DP>=D:;0( !.4( 20./( h:<A6( OOX7(
)8+( $BB0?<( =B( K040>./( L04G4?:.<:=4( =B( L:FA<;6( OOX7( )@+( -<>:?<(
!=4;<>G?<:=4(=B(.(!=DP>=D:;0(EF>00D04<6(OOX7(Z4<0>4.<:=4./(
9=<0/( !=>PI6( 0<( ./I( HI( 9=4I( $/:.;( E;G4?:=46( RV@OSSO6( #.>I( *X6(
*OMQ6(OOXI
ARTICLE 2037 .................................................................................. 991
!"##$%&'( )*+( L0;( `G5:?.<.( $BB0?<( =B( .( !=DP>=D:;06( OO*7(
!>Gg6(0<(./I(HI(ZE!6(0<(./I6(KL(M8NXS6(`.4I(O6(*ONO6(OO*7()8+(`G-
5:?:./(!=DP>=D:;06(OO*7(L0PGJ/:?(HI(!=G><(=B(EPP0./;6(RVCM@N*(
.45( RVCMC8X6( `.4I( @*6( *ONQ6( OO87( Y050>:;( HI( -G4F.6( RV@CNO@6(
`.4I( *M6( *ONQ6( OO87( )@+( `G5FD04<( K040>.//]( %=<( EPP0./.J/06(
OO87( )C+( `G5FD04<( J]( h.F0( E5D:4:;<>.<:=4( -0>H:?06( OO@7( )Q+(
hA04( `G5FD04<( =4( !=DP>=D:;0( Z;( [=:56( OO@7( )S+( $BB0?<( =B( .(
`G5:?:./( !=DP>=D:;0( =4( U0>;=4;( %=<( ">:F:4./( U.><:0;6( OOC7(
L=5>:FG0g( HI( E/:eP./.6( RV@N@*C6( `G4I( 8Q6( *OMC6( OOC7( \=J:;( HI(
U>=H:4?:./( -A0>:BB( =B( !.D.>:40;( %=><06( KL( 8ON@N6( #.>I( *N6(
1983, 994.
ARTICLE 2038 .................................................................................. 994
!"##$%&'()*+($BB0?<(=B(!=DP>=D:;0(hA0>0(&A0>0(:;([:<:.<05(
!=4;04<6(OOQ7()8+(#=5:3?.<:=4(=B(.(`G5FD04<(=4(!=DP>=D:;06(
995.
ARTICLE 2039 .................................................................................. 995
!"##$%&'( $BB0?<( =B( 2:;?=H0>]( =B( 2=?GD04<;( L0B0>>:4F( <=(
#.<<0>;(!=DP>=D:;05(dP=46(OOSI

ARTICLE 2040 .................................................................................. 996

!"##$%&'( )*+( !=DP>=D:;0( $4<0>05( Z4<=( :4( ZF4=>.4?0( =B( .(

Y:4./(`G5FD04<6(OOS7()8+(L0.;=4(B=>(E//=c:4F(.(L0;?:;;:=46(OOS7(
(3) Effect of Appeal, 996.

ARTICLE 2041 .................................................................................. 996

!"##$%&'( )*+( $BB0?<( :B( !=DP>=D:;0( EF>00D04<( Z;( %=<( YG/-

3//056( OOM7( !:<]( =B( W.DJ=.4F.( HI( #.45:6( KL( NSMSX6( EP>I( @X6(
*OO*6(OOM7(\.>>0>.;6(0<(./I(HI(9=4I(K.>?:.6(0<( ./I6(RVCCM*Q( *S6(
`.4I( 8S6( *ONO6( *XXX7( )8+( %=( %0?0;;:<]( B=>( `G5:?:./( L0;?:;;:=46(
*XXX7()@+(%=(L0;?:;;:=4(EB<0>(\0403<;(.>0($4^=]056(*XXX7(L0-
public v. Sandiganbayan, 49 SCAD 45 (1993), 1000.

CHAPTER 2 ARBITRATIONS ......................................................... 1001

ARTICLE 2042 .................................................................................. 1001
!"##$%&'()*+(,E>J:<>.<:=41(2034056(*XX*7(#:45.4.=(U=></.45(
!0D04<( !=>PI( HI( #?2=4=GFA6( RV8@@OX6( EP>I( 8C6( *OSM6( *XX*7(

lxxiv
 \04F;=4( HI( !A.46( RV8M8N@6( `G/I( 8O6( *OMM6( *XX*7( E//:05( \.4e-
:4F(!=>PI(HI(!E( _( \UZ6( KL( *8@NM*6( EGFI( @*6( *OON6( *XX87( R#(
Power Engineering Corp. v. Capitol Industrial Const. Groups,
Z4?I6(KL(RV*C*N@@6(#.>I(8S6(8XX@6(*XX87()8+(2:;<:4FG:;A05(B>=D(
,!=DP>=D:;016(*XX@7()@+(-P0?:./(R.c(=4(E>J:<>.<:=46(*XXCI(
ARTICLE 2043 .................................................................................. 1004
!"##$%&'( EPP/:?.J:/:<]( =B( U>=H:;:=4;( =4( !=DP>=D:;06(
1004.
ARTICLE 2044 .................................................................................. 1004
!"##$%&'()*+(Y:4./:<](=B(E>J:<>./(Ec.>56(*XXC7()8+(-<:PG/.-
<:=4(=4(E>J:<>.<:=4(\0B=>0(`G5:?:./(-G:<6(*XXC7()@+(!.;0;6(*XXQ7(
National Union Five Insurance Co. of Pittsburg v. Stolt-Nielsen
UA:/;I6(Z4?I6(*NC(-!LE(SN8()*OOX+6(*XXQ7(-.4<=;(HI(%=><Ac0;<(
">:04<(E:>/:40;6(8*X(-!LE(8QS()*OO8+6(*XXQ7()C+(-=D0("J;0>H.-
<:=4;6(*XXQ7(aG0;<:=4(=B(Y.?<(.45(=B(R.c(L0(E>J:<>./(Ec.>5;(
E;;0<(U>:H.<:g.<:=4(&>G;<(HI(!=G><(=B(EPP0./;6(@XX(-!LE(QMO(
)*OON+6(*XXS7()Q+(&A0(#.<<0>(=B(,Y:/:4F(Y0016(*XXM7(-G4(Z4;G>.4?0(
"B3?06(R<5I()-Z"R+(HI(E;G4?:=46(*MX(-!LE(8MC()*ONO+6(*XXM7()S+(
!=G><(<=(20?:50(E//(#=<:=4;6(U0<:<:=4;6(=>(EPP/:?.<:=4;(c:<A:4(*X(
2.](EB<0>(90.>:4F6(*XXM7(UG>=D:40;6(Z4?I(HI(!E6(88X(-!LE(8N*(
)*OO@+6(*XXM7()M+(Z4?/G;:=4(=B(&A:>5(U.><:0;(.;(E55:<:=4./(U.><:0;(
<=(20B0.<(.4(E>J:<>.<:=4(!/.G;06(*XXN7(&=]=<.(#=<=>(UA:/;I(!=>PI(
HI(!E6(8*S(-!LE(8@S()*OO8+6(*XXN7()N+(&A0(20/(#=4<0(!.;06(*XXO7(
20/(#=4<0(!=>PIVd-E(HI(!E6(@Q*(-!LE(@M@()8XX*+6(*XXOI
ARTICLE 2045 .................................................................................. 1013
!"##$%&'($iG./(%GDJ0>(=B(E>J:<>.<=>;6(*X*@I
ARTICLE 2046 .................................................................................. 1013
!"##$%&'( EG<A=>:<]( =B( <A0( -GP>0D0( !=G><( <=( U>=DG/F.<0(
LG/0;(=4(E>J:<>.<:=46(*X*@I

Title XV. GUARANTY ............................................................................. 1014

CHAPTER 1 NATURE AND EXTENT OF GUARANTY ............. 1014

Z%&L"2d!&"Lf( !"##$%&'( )*+( KG.>.4<]( :4( <A0( \>=.5(
-04;06(*X*C7()8+(U0>;=4./(KG.>.4<]6(*X*C7()@+(L0./(KG.>.4<]6(
*X*C7( -.4( #:FG0/( !=>P=>.<:=4( HI( %.<:=4./( R.J=>( L0/.<:=4;(
!=DD:;;:=46(KL(QNS@X6(%=HI(8Q6(*ON@6(*X*QI

ARTICLE 2047 .................................................................................. 1015

!"##$%&'()*+(KG.>.4<](:4(<A0(-<>:?<(-04;06(*X*Q7()8+(!A.>-
.?<0>:;<:?;(=B(<A0(!=4<>.?<(=B(KG.>.4<]6(*X*Q7([:g?=450(HI(ZE!6(
KL( MC8@*6( EP>I( *X6( *ONM6( *X*Q7( )@+( KG.>.4<=>( 2:;<:4FG:;A05(
B>=D( -G>0<]6( *X*M7( )C+( -G>0<]( 2:;<:4FG:;A05( B>=D( .( -=/:5.>](
20J<=>6( *X*M7( )Q+( U>=?05G>0( B=>( $4B=>?0D04<( =B( -G>0<]1;( R:-
.J:/:<]6( *X*M7( )S+( ,KG.>.4<=>1( 2:;<:4FG:;A05( B>=D( <A0( ,20J<=>16(
*X*N7()M+(Znstance hhen a Suretyship is Deemed a Continuing

lxxv
 O406(*X*N7(Ongkiko v. BPI Express Card Corp., 486 -!LE 206
(2006), 1018.
ARTICLE 2048 .................................................................................. 1018
!"##$%&'( )*+( K>.<G:<=G;( !A.>.?<0>6( *X*N7( )8+( L0/.<:=4(
B0<c004( .4( ,E??=DD=5.<:=4( U.><]1( .45( <A0( ,E??=DD=5.<05(
P.><]61(*X*O7(Tomas Ang v. Associated Bank and Antonio Ang
Eng Liong, KL 146511, S0PI(Q6(8XXM6(*X*OI
ARTICLE 2049 .................................................................................. 1019
!"##$%&'(#.>>:05(h=D.4(.;(KG.>.4<=>6(*X*OI
ARTICLE 2050 .................................................................................. 1019
!"##$%&'( )*+( KG.>.4<]( $4<0>05( Z4<=( h:<A=G<( 20J<=>1;(
T4=c/05F06( !=4;04<6( =>( EF.:4;<( <A0( R.<<0>1;( h://6( *X*O7( )8+(
!>=;;(L0B0>04?0;6(*X*OI
ARTICLE 2051 .................................................................................. 1020
!"##$%&'( )*+( KG.>.4<]( !/.;;:305( E??=>5:4F( <=( #.440>( =B(
!>0.<:=46(*X8X7()8+(-GJVKG.>.4<]6(*X8XI
ARTICLE 2052 .................................................................................. 1020
!"##$%&'()*+(!.4(.(KG.>.4<]($b:;<($H04(h:<A=G<(.([./:5(
U>:4?:P./("J/:F.<:=46(*X8*7()8+(!=4;:50>.<:=46(*X8*7(h://0b(U/.;-
<:?(Z45I(!=>PI(H;I(!E(_(Z!\6(KL(*X@XSS6(EP>I(8Q6(8XXS6(*X8*I
ARTICLE 2053 .................................................................................. 1022
!"##$%&'()*+(KG.>.4<](B=>(U>0;04<(.45(YG<G>0(20J<;6(*X887(
)8+(R:iG:5.<05(20J<6(*X887()@+(!=4<:4G:4F(-G>0<](EF>00D04<;(
.>0(aG:<0(!=DD=4P/.?0(:4(U>0;04<(2.](!=DD0>?:./(U>.?<:?06(
*X887(-=G<A(!:<](9=D0;6(Z4?I6(Y=><G40(#=<=>;()UA:/;I+6(U./.c.4(
RGDJ0>((#.4GB.?<G>:4F(!=>PI(HI(\E(Y:4.4?0(!=>PI6(KL(*@QCS86(
20?I(M6(8XX*6(*X8@I
ARTICLE 2054 .................................................................................. 1023
!"##$%&'()*+("J/:F.<:=4(=B(KG.>.4<=>(#.](\0(R0;;6(\G<(%=<(
#=>0(&A.4("J/:F.<:=4(=B(U>:4?:P./(20J<=>6(*X8C7(U.?:3?(\.4e-
:4F(!=>PI(HI(ZE!6(KL(M88MQ6(%=HI(*@6(*OO*6(*X8C7()8+(U>=J/0D;6(
*X8S7()@+(LG/0(:B(.(U0>;=4(9.;(&c=(20J<;6(*X8M7(!=DD=4c0./<A(
of the Phil. v. Far Eastern Surety and Insurance Co., 83 Phil.
@XQ6( *X8M7( )C+( LG/0( :B( 20J<( :;( Z4?>0.;056( *X8M7( )Q+( R:.J:/:<]( =B(
KG.>.4<=>( B=>( Z4<0>0;<6( *X8N7( )S+( $BB0?<( =B( .( U04./<]( !/.G;06(
1028.
ARTICLE 2055 .................................................................................. 1028
!"##$%&'()*+(Y=>D(=B(<A0(!=4<>.?<6(*X8N7(U%\(HI(!E6(RGg=4(
-G>0<]( !=I6( 0<( ./I6( KL( @@*MC6( `G/I( C6( *OO*6( *X8O7( )8+( T:45;( =B(
KG.>.4<]( E??=>5:4F( <=( U0>:=5( =>( !=45:<:=46( *X@X7( %.<:=4./(
#.>e0<:4F( !=>P=>.<:=4( HI( K.J:4=( #.>iG0g6( 0<( ./I6( RV8QQQ@6(
`.4I(@*6(*OSO6(*X@X7()@+(-<>:?</](!=4;<>G056(*X@*I

lxxvi
 ARTICLE 2056 .................................................................................. 1032
!"##$%&'( )*+( aG./:3?.<:=4( =B( KG.>.4<=>6( *X@@7( )8+( U>=P0>(
Court, 1033.
ARTICLE 2057 .................................................................................. 1033
!"##$%&'()*+($BB0?<(=B(!=4H:?<:=4(=B(.(!>:D0(Z4H=/H:4F(2:;-
A=40;<]6(*X@@7()8+(-GJ;0iG04<(R=;;(=B(Z4<0F>:<](=>(Z4;=/H04?]6(
*X@@7()@+(R:.J:/:<](=B(90:>;(:B(<A0(KG.>.4<=>(2:0;6(*X@CI

CHAPTER 2 EFFECTS OF GUARANTY ....................................... 1035

Section 1 EFFECTS OF GUARANTY BETWEEN THE

GUARANTOR AND THE CREDITOR .................. 1035

INTRODUCTORY COMMENT .............................................................. 1035

ARTICLE 2058 .................................................................................. 1035
!"##$%&'()*+(\0403<(=B($b?G;;:=46(*X@Q7()8+(\.>(aG0;<:=46(
*X@S7()@+(2G<](=B(!>05:<=>6(*X@S7()C+(aG0>]6(*X@MI
ARTICLE 2059 ................................................................................. ( *X@M
!"##$%&'()*+(hA04(KG.>.4<=>(Z;(%=<($4<:</05(<=(\0403<(=B(
$b?G;;:=46(*X@M7()8+(E55:<:=4./(Z4;<.4?0;(hA04(KG.>.4<=>(Z;(
%"&( $4<:</05( <=( <A0( \0403<( =B( $b?G;;:=46( *X@N7( )@+( L0( U.>.-
graph 4 of the Article (Absconding Debtor), 1038.
ARTICLE 2060 .................................................................................. 1038
!"##$%&'( L0iG:;:<0;( \0B=>0( KG.>.4<=>( !.4( #.e0( d;0( =B(
Excussion, 1038.
ARTICLE 2061 .................................................................................. 1039
!"##$%&'($BB0?<(=B(!>05:<=>1;(%0F/:F04?06(*X@OI
ARTICLE 2062 .................................................................................. 1039
!"##$%&'( )*+( K040>.//]( -G:<( #G;<( \0( EF.:4;<( U>:4?:P./(
20J<=>( E/=406( *X@O7( )8+( -G:<( J]( <A0( !>05:<=>( <=( L0?=H0>( <A0(
20J<6(*XCX7()@+(L0.;=4(B=>(%=<:B]:4F(KG.>.4<=>6(*XCX7()C+("J-
/:F.<=>](%.<G>0(=B(<A0(%=<:3?.<:=46(*XCXI
ARTICLE 2063 .................................................................................. 1040
!"##$%&'( )*+( $BB0?<( =B( !=DP>=D:;0( \0<c004( !>05:<=>( .45(
U>:4?:P./(20J<=>6(*XCX7()8+($BB0?<(=B(!=DP>=D:;0(\0<c004(<A0(
Guarantor and the Creditor, 1040.
ARTICLE 2064 .................................................................................. 1041
!"##$%&'(-GJVKG.>.4<=>($4^=];($b?G;;:=46(*XC*I
ARTICLE 2065 .................................................................................. 1041
!"##$%&'()*+(\0403<(=B(2:H:;:=46(*XC*7()8+(hA04(<A0(\0403<(
of Division Ceases, 1041.

lxxvii
Section 2 EFFECTS OF GUARANTY BETWEEN THE
DEBTOR AND THE GUARANTOR ...................... 1041
ARTICLE 2066 .................................................................................. 1041
!"##$%&'()*+(Z450D4:<](<=(\0(U.:5(\](<A0(20J<=>(B=>(hA=D(
<A0( KG.>.4<=>( 9.;( U.:56( *XC87( )8+( KG.>.4<]( .;( .( -<>:?<( Z4-
demnity, 1042.

ARTICLE 2067 .................................................................................. 1042

!"##$%&'()*+(L:FA<(=B(KG.>.4<=>(<=(-GJ>=F.<:=46(*XC@7(d>-
>G<:.(.45(!=I(HI(#=>04=(.45(L0]0;6(8N(UA:/I(8SX6(*XC@I

ARTICLE 2068 .................................................................................. 1043

!"##$%&'( )*+( $BB0?<( :B( KG.>.4<=>( U.];( h:<A=G<( %=<:B]:4F(

20J<=>6(*XCC7()8+(L0.;=4(B=>(<A0(E><:?/06(*XCCI

ARTICLE 2069 .................................................................................. 1044

!"##$%&'()*+(U.]D04<(\](KG.>.4<=>(\0B=>0(20J<(\0?=D0;(
2G06(*XCC7()8+(L0.;=4(B=>(<A0(E><:?/06(*XCC7()@+(L.<:3?.<:=4(\](
the Debtor, 1044.
ARTICLE 2070 .................................................................................. 1044

!"##$%&'( )*+( U.]D04<( \]( \=<A( <A0( KG.>.4<=>( .45( <A0(

20J<=>6( *XCQ7( )8+( K>.<G:<=G;( KG.>.4<]6( *XCQ7( )@+( !=DD04<(
=B(#.4>0;.6(*XCQ7()C+(EPP/:?.J/0("4/](hA04(20J<=>(9.5(%=<(
Previously Authorized the Guarantor to Pay, 1046.

ARTICLE 2071 .................................................................................. 1046

!"##$%&'()*+(L:FA<;(=B(KG.>.4<=>(\0B=>0(U.]D04<6(*XCM7()8+(
U>=J/0D;6(*XCM7()@+(9=c(KG.>.4<=>(=>(-G>0<](!.4($4B=>?0(<A0(
L:FA<;(d450>(<A0(E><:?/06(*XCN7()C+(U>=J/0D6(*XCN7(#0>?.4<:/0(
Z4;G>.4?0(!=I6(Z4?I(HI(Y0/:P0(f;D.0/6(`>I6(.45(!=I6(Z4?I6(RVC@NS86(
`.4I(*@6(*ONO6(*XCO7()Q+(&A0(%.<G>0(=B(<A0(L0D05:0;6(*XCO7()S+(
EPP/:?.J:/:<](=B(<A0(E><:?/0(<=(-G>0<:0;6(*XCO7()M+(hA04(-G>0<]1;(
E?<:=4( Z;( %=<( U>0D.<G>06( *XQX7( &A0( !=;D=P=/:<.4( Z4;G>.4?0(
!=I6(Z4?I(HI(E4F0/(\I(L0]0;6(RV8X*OO6(%=HI(8@6(*OSQ6(*XQXI

ARTICLE 2072 .................................................................................. 1051

!"##$%&'(KG.>.4<=>(hA=(\0?=D0;("40(E<(<A0(L0iG0;<(=B(
an Absent Debtor, 1051.

Section 3 EFFECTS OF GUARANTY AS BETWEEN

CO-GUARANTORS .................................................... 1051
ARTICLE 2073 .................................................................................. 1051
!"##$%&'( )*+( L:FA<( =B( KG.>.4<=>( hA=( U.];6( *XQ87( )8+( $b-
.DP/0(=B(U.>I(*6(*XQ87()@+($b.DP/0(=B(U.>I(86(*XQ87()C+(2:;<:4-
FG:;A05(B>=D(\0403<(=B(2:H:;:=46(*XQ8I

lxxviii
 ARTICLE 2074 .................................................................................. 1053
!"##$%&'( L:FA<( =B( !=VKG.>.4<=>;( EF.:4;<( <A0( KG.>.4<=>;(
hA=(U.:56(*XQ@I
ARTICLE 2075 ................................................................................. 1053
!"##$%&'( R:.J:/:<]( =B( -GJVKG.>.4<=>;( <=( !=VKG.>.4<=>;6(
1053.
CHAPTER 3 EXTINGUISHMENT OF GUARANTY .................... 1054
ARTICLE 2076 .................................................................................. 1054
!"##$%&'()*+(&c=(!.G;0;(B=>($b<:4FG:;AD04<(=B(<A0(KG.>-
.4<]6( *XQC7( )8+( $BB0?<( =B( %=H.<:=46( *XQC7( !.P:<=/( Z4;G>.4?0( HI(
L=4iG://=(&>.5:4F6(KL(@SCNN6(`G/I(8S6(*ON@6(*XQQI
ARTICLE 2077 .................................................................................. 1055
!"##$%&'($BB0?<(=B(2.?:=4($4(U.F=6(*XQQI
ARTICLE 2078 .................................................................................. 1055
!"##$%&'(L0/0.;0(J](!>05:<=>(:4(Y.H=>(=B("40(=B(<A0(KG.>-
antors, 1055.
ARTICLE 2079 .................................................................................. 1056
!"##$%&'()*+($BB0?<(=B($b<04;:=4(K>.4<05(\](<A0(!>05:<=>6(
*XQS7()8+(!=DD04<(=B(#.4>0;.6(*XQS7(UA:/:PP:40(K040>./(Z4;I(
!=I( HI( #G<G?6( RV*OS@86( %=HI( *@6( *OMC6( *XQS7( )@+( Y.:/G>0( =B(
!>05:<=>( <=( 20D.45( U.]D04<6( *XQM7( K040>./( Z4;G>.4?0( .45(
-G>0<]( !=>PI( HI( L0PGJ/:?6( RV*@NM@6( `.4I( @*6( *OS@6( *XQM7( &A0(
Commissioner of Immigration v. Asian Surety and Insurance
!=I6(Z4?I6(RV88QQ86(`.4I(@X6(*OSO6(*XQN7()C+(U>=J/0D;6(*XSX7()Q+(
Neglect of Creditor to Collect, 1061.
ARTICLE 2080 .................................................................................. 1061
!"##$%&'( )*+( hA04( KG.>.4<=>;( E>0( L0/0.;05( \0?.G;0( =B(
.4( E?<( =B( <A0( !>05:<=>( &A.<( U>0H04<;( -GJ>=F.<:=46( *XS*7( )8+(
L0.;=4( B=>( <A0( E><:?/06( *XS*7( )@+( #0.4:4F( =B( kE?<l6( *XS*7( )C+(
hA04( KG.>.4<=>( :;( .<( Y.G/<6( *XS87( )Q+( hA04( KG.>.4<=>( !.4(
#.e0(d;0(=B(<A0(E><:?/06(*XS87()S+(Art. 2080 does not Apply in
a Contract of SG>0<];A:P6( *XS87( Ang v. Associated Bank, KL
146511, S0PI(Q6(8XXM6(*XS8I
ARTICLE 2081 .................................................................................. 1062
!"##$%&'(20B04;0;(EH.:/.J/0(<=(<A0(KG.>.4<=>6(*XS8I

CHAPTER 4 LEGAL AND JUDICIAL BONDS ............................ 1064

ARTICLE 2082 .................................................................................. 1064
!"##$%&'( )*+( aG./:3?.<:=4( =B( .( \=45;D.46( *XSC7( )8+( &A0(
\=456(*XSC7(-:4F;=4(HI(\.J:5.6(RV@XXOS6(-0PI(8M6(*OMM6(*XSC7(
)@+(L:FA<(<=(\0(90.>56(*XSQI

lxxix
 ARTICLE 2083 .................................................................................. 1065
!"##$%&'(LG/0(:B(<A0(\=45(Z;(%=<(K:H046(*XSQI
ARTICLE 2084 .................................................................................. 1065
!"##$%&'( )*+( %=( L:FA<( <=( $b?G;;:=46( *XSQ7( )8+( R:.J:/:<]( =B(
-G>0<](:B(!>05:<=>(h.;(%0F/:F04<(:4(!=//0?<:4F6(*XSS7()@+($BB0?<(
=B( [:=/.<:=4( \]( !>05:<=>( =B( &0>D;( =B( <A0( -G>0<]( EF>00D04<6(
*XSS7()C+(\=45(Y:/05(B=>(E/:04;(-<.]6(*XSS7()Q+(LG/0(hA04(U0>-
B=>D.4?0(:;(L0450>05(ZDP=;;:J/06(*XSS7()S+("J/:F.<:=4(=B(-G>0<](
<=( T00P( <A0( E??G;05( d450>( 9:;( -G>H0://.4?06( *XSM7( U0=P/0( HI(
ZF4.?:=(-.4?A0g6(0<(./I6(RV(@C8886( `.4I(8C6( *OMC6( *XSM7( 9=G;0(
HI(20(R.(!=;<.6(SN(UA:/I(MC86(*XSM7()M+(-P0?:./(E?<(=4(U0>B=>D-
ance Bonds, 1068.

Title XVI. PLEDGE, MORTGAGE AND ANTICHRESIS ............... 1069

CHAPTER 1 PROVISIONS COMMON TO PLEDGE

AND MORTGAGE .................................................... 1069
ARTICLE 2085 .................................................................................. 1069
!"##$%&'()*+(!=4;:50>.<:=4(=B(U/05F0(=>(#=><F.F06(*XSO7()8+(
"c40>;A:P6(*XMX7()@+(%G//:<](=B(U/05F0(=>(#=><F.F06(*XMX7()C+(
R:.J:/:<](=B(#=><F.F=>(B=>(E4=<A0>1;(20J<6(*XMX7()Q+($;;04<:./(
L0iG:;:<0;(B=>(U/05F0(.45(#=><F.F06(*XM*7()S+(!.;06(*XM*7(KG://-
0>D=(E5>:.4=(HI((L=DG/=(U.4F:/:4.46(KL(*@MCM*6(`.4I(*S6(8XX86(
*XM*7()M+(A DST is not an Imposition in the Document Itself but
on the Privilege to Enter into a Taxable Transaction of Pledge,
*XMC7( #ichel J. Lhuiller Pawnshop, Inc. v. Commissioner of
Internal Levenue (!ZL), 501 -!LE(CQX()8XXS+6(*XMCI
ARTICLE 2086 ................................................................................. ( *XMQ
!"##$%&'(EPP/:?.J:/:<](=B(E><I(8XQ8()KG.>.4<](=B([=:5.J/06(
0<?I6("J/:F.<:=4;+6(*XMQI
ARTICLE 2087 .................................................................................. ( *XMS
!"##$%&'()*+(L:FA<(<=(9.H0(<A0(U>=P0><](E/:04.<05(-=(&A.<(
<A0(20J<(#.](\0(U.:56(*XMS7()8+([:=/.<:=4;(=B(!=45:<:=4;(#.](
EG<A=>:g0( ZDD05:.<0( Y=>0?/=;G>06( *XMS7( )@+( U>:?06( *XMM7( $/(
9=F.>(Y:/:P:4=(HI(UA:/I(%.<1/I(\.4e6(SC(UA:/I(QN86(*XMM7(-=/=D=4(
.45(R.?A:?.(HI(2.4<0;6(S@(UA:/I(Q886(*XMN7(R=P0g(HI(2:>0?<=>(=B(
R.45;6(CM(UA:/I(8@6(*XMNI
ARTICLE 2088 .................................................................................. ( *XMO
!"##$%&'()*+(U.?<GD(!=DD:;;=>:GD6(*XMO7()8+(!.;0;6(*XNX7(
h.>40>6(\.>40;(.45(!=I(HI(\G04.p=>(.45(#.?=]6()!E+(@S("IKI(
@8OX6(*XNX7(L.4^=(HI(-./D=46(*Q(UA:/I(C@S6(*XN*7(2./.](HI(EiG:.-
<:4(.45(#.b:D=6(CM(UA:/I(OQ*6(*XN*7((EI(Y>.4?:;?=(L0./<](_(20HI(
!=>PI(HI(!E(_(-P;I(L=DG/=(-IEI(`.H://=4.>(.45($>/:45.(UI(`.H:/-
/=4.>6(KL(*8QXQQ6("?<I(@X6(*OON6(*XN@7()@+(#=><F.F00(!.44=<(
-0//(2G>:4F($b:;<04?0(=B(U>:4?:P./("J/:F.<:=46(*XN@7()C+(!.;06(
*XNC7(90?A.4=H.(HI(E5:/6(KL(COOCX6(-0PI(8Q6(*ONS6(*XNCI

lxxx
 ARTICLE 2089 .................................................................................. 1084
!"##$%&'( )*+( Z45:H:;:J:/:<]( =B( .( U/05F0( =>( #=><F.F06( *XNC7(
)8+( $b.DP/0( =B( <A0( $b?0P<:=46( *XNQ7( )@+( #=><F.F0( =4( \=<A( .(
9=G;0( .45( Z<;( R=<6( *XNQ7( )C+( %=4( EPP/:?.J:/:<]( <=( &A:>5( U0>-
sons, 1085.
ARTICLE 2090 .................................................................................. 1085
!"##$%&'()*+(Z45:H:;:J:/:<](EPP/:0;($H04(:B(20J<=>;(E>0(%=<(
-=/:5.>]6(*XNQ7()8+(!.;06(*XNS7("4F(HI(ZE!6(KL(MCXM@6(-0PI(*@6(
1991, 1086.
ARTICLE 2091 .................................................................................. ( *XNM
!"##$%&'( &A0( T:45;( =B( "J/:F.<:=4;( hA:?A( .( U/05F0( =>( .(
#=><F.F0(#.](-0?G>06(*XNMI
ARTICLE 2092 .................................................................................. ( *XNM
!"##$%&'()*+(E(U>=D:;0(<=(!=4;<:<G<0(.(U/05F0(=>(#=><F.F06(
*XNM7( )8+( `G5:?:./( 20?/.>.<:=4( =B( R:04( Z;( -GB3?:04<6( *XNN7( )@+(
2=GJ/0(L0D05:0;6(*XNN7()C+($;<.B.6(*XNN7()Q+(E4=<A0>(Z4;<.4?0(
=B( $;<.B.6( *XNO7( )S+( "c40>;A:P( %=<( .( %0?0;;.>]( $/0D04<( =B(
Estafa, 1089.

CHAPTER 2 PLEDGE ........................................................................ 1090

ARTICLE 2093 .................................................................................. 1090
!"##$%&'( )*+( &A:4F( U/05F05( #G;<( \0( :4( U=;;0;;:=4( =B( <A0(
!>05:<=>(=>(.(&A:>5(U0>;=4(\](!=DD=4(EF>00D04<6(*XOX7()8+(
$BB0?<:H:<]( EF.:4;<( &A:>5( U0>;=4;6( *XOX7( )@+( -]DJ=/:?( 20/:H-
0>]6(*XO*7()C+( $b.DP/06( *XO*7( \0<:<.( HI(KG.4g=46( CO( UA:/I( NM6(
1091.
ARTICLE 2094 .................................................................................. 1091
!"##$%&'(hA.<(#.](\0(U/05F056(*XO*7(U.?I(!=DI(!=I(HI(UA:/I(
%.<1/I(\.4e6(CO(UA:/I(8@S6(*XO87(&A0(#.4:/.(\.4e:4F(!=>PI(HI(
&0=5=>=6(0<(./I6(KL(Q@OQQ6(`.4I(*@6(*ONO6(*XO8I
ARTICLE 2095 .................................................................................. 1092
!"##$%&'()*+(U/05F0(=B(Z4?=>P=>0./(L:FA<;6(*XO@7()8+(U/05F0(
!0><:3?.<06(*XO@I
ARTICLE 2096 .................................................................................. 1093
!"##$%&'( )*+( $BB0?<:H:<]( =B( U/05F0( EF.:4;<( &A:>5( U0>;=4;6(
*XO@7( )8+( L0.;=4( B=>( <A0( R.c6( *XO@7( )@+( #0>0( 20/:H0>]( %=<(
-GB3?:04<6(*XO@7()C+(E;;:F400(d450>(<A0(Z4;=/H04?](R.c6(*XOC7(
)Q+(U>=J/0D6(*XOC7()S+($BB0?<(:B(%=(UGJ/:?(Z4;<>GD04<(Z;(#.506(
1094.
ARTICLE 2097 .................................................................................. 1094

!"##$%&'(U/05F=>(#.](E/:04.<0(&A:4F(U/05F056(*XOQI

lxxxi
ARTICLE 2098 .................................................................................. 1095
!"##$%&'()*+(!>05:<=>1;(L:FA<(<=(L0<.:46(*XOQ7()8+(LG/0(d450>(
<A0("/5(R.c6(*XOQ7()@+(%=(2=GJ/0(U/05F06(*XOSI
ARTICLE 2099 .................................................................................. 1096
!"##$%&'(2G<](=B(U/05F00(<=(&.e0(!.>0(=B(&A:4F(U/05F056(
*XOS7(!>Gg(.45(-0>>.4=(HI(!AG.(EI9I(R006(QC(UA:/I(*X6(*XOMI
ARTICLE 2100 .................................................................................. 1098
!"##$%&'( )*+( U/05F00( !.44=<( 20P=;:<( <A0( &A:4F( U/05F056(
*XON7( )8+( L0;P=4;:J:/:<]( =B( U/05F00( B=>( -GJ=>5:4.<0;1( E?<;6(
1098.
ARTICLE 2101 .................................................................................. 1098
!"##$%&'(-.D0(L0;P=4;:J:/:<](.;(.(\.:/=>(:4(!=DD=5.<GD6(
1098.
ARTICLE 2102 .................................................................................. 1098
!"##$%&'( LG/0;( :B( U/05F0( U>=5G?0;( Y>G:<;( =>( Z4<0>0;<;6(
1099.
ARTICLE 2103 .................................................................................. 1099
!"##$%&'( )*+( "c40>;A:P( L0<.:405( \]( U/05F=>6( *XOO7( )8+(
$b0>?:;0(\](U/05F00(=B(L:FA<;(=B("c40>6(*XOOI

ARTICLE 2104 .................................................................................. 1099

!"##$%&'(d;0(\](!>05:<=>(=B(&A:4F(20P=;:<056(*XOOI

ARTICLE 2105 .................................................................................. 1100

!"##$%&'( hA04( 20J<=>( !.4( 20D.45( <A0( L0<G>4( =B( &A:4F(

Pledged, 1100.

ARTICLE 2106 .................................................................................. 1100

!"##$%&'( hA04( U/05F=>( #.]( L0iG:>0( &A.<( <A0( "J^0?<( \0(

20P=;:<05(h:<A(.(&A:>5(U0>;=46(**XXI

ARTICLE 2107 .................................................................................. 1100

!"##$%&'( hA04( 20;<>G?<:=4( =>( ZDP.:>D04<( Z;( Y0.>056(

h:<A=G<(<A0(Y.G/<(=B(<A0(U/05F006(**X*I

ARTICLE 2108 .................................................................................. 1101

!"##$%&'(20;<>G?<:=46(ZDP.:>D04<6(=>(2:D:4G<:=4(:4([./G0(
of the Thing Pledged, 1101.

ARTICLE 2109 .................................................................................. 1102

!"##$%&'(LG/0(:B(!>05:<=>(Z;(20?0:H05(=4(<A0(-GJ;<.4?0(=>(
aG./:<](=B(<A0(&A:4F(U/05F056(**X8I

lxxxii
ARTICLE 2110 .................................................................................. 1102
!"##$%&'( )*+( L0<G>4( =B( &A:4F( U/05F056( **X87( )8+( hA04(
Thing Pledged Is Found in the Possession of the Pledgor or
Owner, 1103.
ARTICLE 2111 .................................................................................. 1103
!"##$%&'( )*+( hA04( U/05F00( L04=G4?0;( =>( EJ.45=4;( <A0(
U/05F06( **X@7( )8+( Y=>D( %00505( q( -<.<0D04<( :4( h>:<:4F6(
1103.
ARTICLE 2112 .................................................................................. 1104
!"##$%&'()*+(L:FA<(=B(!>05:<=>(<=(-0//(:B(!>05:<(Z;(%=<(-.<:;-
3056(**XC7()8+(Y=>D./:<:0;(L0iG:>056(**XC7()@+(aG0;<:=4;6(**XC7(
)C+(LG/0(d450>(<A0("/5(R.c6(**XQ7()Q+(LG/0(hA04(U/05F00(Z;(
Expressly Authorized to Sell Upon Default, 1106.
ARTICLE 2113 .................................................................................. 1106
!"##$%&'(L:FA<(=B(U/05F=>(.45(U/05F00(<=(\:5(.<(<A0(UGJ/:?(
Auction, 1106.
ARTICLE 2114 .................................................................................. 1106
!"##$%&'(%.<G>0(=B(<A0(\:5;(.<(<A0(UGJ/:?(EG?<:=46(**XMI
ARTICLE 2115 .................................................................................. ( **XM
!"##$%&'(LG/0;(:B(<A0(U>:?0(E<(<A0(-./0(Z;(#=>0(=>(R0;;(<A.4(
<A0(20J<6(**XM7(#.4:/.(-G>0<](.45(Y:50/:<](!=I6(Z4?I(HI([0/.]=6(
RV8*XSO6("?<I(8S6(*OSM6(**XMI
ARTICLE 2116 .................................................................................. 1108
!"##$%&'(2G<](=B(U/05F00(<=(E5H:?0(U/05F=>(=>("c40>(=B(<A0(
L0;G/<(=B(<A0(UGJ/:?(EG?<:=46(**XNI
ARTICLE 2117 .................................................................................. 1108
!"##$%&'(L:FA<(=B(.(&A:>5(U0>;=4(<=(U.](<A0(20J<6(**XNI
ARTICLE 2118 .................................................................................. 1108
!"##$%&'( U/05F0( =B( .( !>05:<( &A.<( R.<0>( =4( \0?=D0;( 2G06(
1108.
ARTICLE 2119 .................................................................................. 1109
!"##$%&'(LG/0(:B(&c=(=>(#=>0(&A:4F;(E>0(U/05F056(**XOI
ARTICLE 2120 .................................................................................. 1109
!"##$%&'(LG/0(:B(.(&A:>5(U0>;=4(U/05F0;(9:;("c4(U>=P0><](
to Secure the Debt of Another, 1109.
ARTICLE 2121 .................................................................................. 1109
!"##$%&'( )*+( U/05F0;( !>0.<05( J]( "P0>.<:=4( =B( R.c6( ***X7(
)8+(-.DP/0;6(***X7()@+(aG0>]6(***XI

lxxxiii
 ARTICLE 2122 .................................................................................. 1110
!"##$%&'( ZB( -./0( =B( &A:4F( U/05F05( \]( "P0>.<:=4( =B( R.c6(
1110.
ARTICLE 2123 .................................................................................. 1111
!"##$%&'(-P0?:./(R.c;(=4(U.c4;A=P;6($<?I6(****I

CHAPTER 3 MORTGAGE ................................................................. 1112

ARTICLE 2124 .................................................................................. 1112
!"##$%&'()*+(,L0./(#=><F.F01(2034056(***87()8+($<]D=/=F:?./(
2034:<:=46(***87()@+(!A.>.?<0>:;<:?;(=B(.(L0./(#=><F.F06(***87(
)C+(L0./(L:FA<6(***@7()Q+(E??0;;=>]6(***@7()S+(Z45:H:;:J/06(***@7(
)M+( Z4;0P.>.J/06( ***@7( )N+( L0./( U>=P0><]6( ***@7( )O+( R:D:<.<:=4(
=4("c40>;A:P6(***C7()*X+(T:45;(=B(L0./(#=><F.F0;6(***C7()**+(
,L0./( #=><F.F01( 2:;<:4FG:;A05( B>=D( ,U/05F016( ***C7( )*8+( ,L0./(
#=><F.F01( 2:;<:4FG:;A05( B>=D( ,-./0( E( L0<>=16( ***C7( )*@+( ,L0./(
#=><F.F01( 2:;<:4FG:;A05( B>=D( ,!A.<<0/( #=><F.F016( ***Q7( )*C+(
%=4VU=;;0;;:=4(\](#=><F.F00(=B(<A0(U>=P0><](#=><F.F056(***Q7(
)*Q+( #=><F.F0;( K:H04( <=( -0?G>0( YG<G>0( E5H.4?0D04<;6( ***Q7(
#=^:?.(HI(!E6(KL(OC8CM6(-0PI(**6(*OO*6(***Q7()*S+(-=D0(!.;0;6(
***S7(U>G504?:=(HI(!E6(KL(@CQ@O6(`G/I(*C6(*ONS6(***S7(U>G504-
<:./(\.4e(HI(U.4:;6(KL(QXXXN6(EGFI(@*6(*ONM6(***S7(-0>34=(HI(
!E6( KL( CXNSN6( -0PI( *Q6( *ONM6( ***N7( 2.4.=( HI( !E6( KL( CN8MS6(
-0PI(@X6(*ONM6(***O7()*M+(E(#=><F.F0(:;(.4(E??0;;=>](!=4<>.?<6(
**8X7( U%\( HI( !E6( -P;I( E4<=4:=( -=( 9G( _( -=/05.5( 50/( L=;.>:=(
.45(-P;I(#.<0=(!>Gg(_(!.>/:<.(L=4iG://=6(KL(*8SOXN6(`.4I(*S6(
8XX@6(**8X7()*N+(-A:P(#=><F.F06(**8X7(%=>5:?(E;:.6(R<5I()4=c(
e4=c4(.;(2%!(R:D:<05+(_(\.4e0>;(&>G;<(!=I(HI(!E6(0<(./I6((KL(
111159, Jun. 30, 2003, 1120.
ARTICLE 2125 .................................................................................. 1122
!"##$%&'( )*+( aG0;<:=4;( L0( E4( d4>0?=>505( #=><F.F06(
**887( L0]0;( HI( 20( R0=46( KL( 88@@*6( `G4I( S6( *OSM6( **8@7( &.4(
HI( [./50AG0g.6( RV@NMCQ6( EGFI( Q6( *OMQ6( **8@7( )8+( !=DD04<( =B(
<A0( !=50( !=DD:;;:=46( **8@7( )@+( $BB0?<( =B( .( -:F405( #=><F.F06(
**8C7()C+(LG/0(:4(!.;0(=B(R0F./(#=><F.F0;6(**8C7()Q+($BB0?<(=B(
L0F:;<>.<:=46(**8CI
ARTICLE 2126 .................................................................................. 1125
!"##$%&'( )*+( #0.4:4F( =B( U>=P0><]( \0:4F( -GJ^0?<05( <=(
<A0( #=><F.F06( **8Q7( )8+( %=4VL0;P=4;:J:/:<]( =B( \G]0>( B=>( <A0(
203?:04?]6( **8Q7( )@+( EPP/:?.J:/:<]( =B( <A0( E><:?/0( $H04( :B( <A0(
#=><F.F=>( Z;( %=<( <A0( U>:4?:P./( 20J<=>6( **8Q7( )C+( &>.4;B0>( =B(
Property to Another, 1125.
ARTICLE 2127 .................................................................................. 1126
!"##$%&'(K.4g=4(HI(`G5F0(-.4?A=6(KL(QSCQX6(`G/I(8Q6(*ON@6(
**8S7()*+("J^0?<;(<=(hA:?A(.(#=><F.F0($b<045;6(**8S7()8+(-=D0(
2=?<>:40;6(**8S7()@+(Y>G:<;(=B(<A0(R.45(#=><F.F056(**8MI

lxxxiv
 ARTICLE 2128 .................................................................................. ( **8M
!"##$%&'( )*+( E/:04.<:=4( =B( <A0( #=><F.F0( !>05:<6( **8M7( )8+(
$BB0?<(:B(E/:04.<:=4(=B(<A0(#=><F.F0(!>05:<(Z;(%=<(L0F:;<0>056(
**8MI
ARTICLE 2129 .................................................................................. 1128
!"##$%&'( )*+( L:FA<( =B( !>05:<=>( <=( K=( EF.:4;<( U=;;0;;=>( =B(
U>=P0><]( #=><F.F056( **8N7( )8+( $b.DP/06( **8N7( Y0>4.450g( HI(
E4:4:.;6(QM(UA:/I(M@M6(**8NI
ARTICLE 2130 ................................................................................. 1129
!"##$%&'( )*+( -<:PG/.<:=4( Y=>J:55:4F( "c40>( <=( E/:04.<06(
**8O7( )8+( L0.;=4( B=>( <A0( R.c6( **8O7( )@+( \.>( aG0;<:=46( **8O7(
)C+( -<:PG/.<:=4( L0iG:>:4F( U>:=>( !=4;04<( =B( #=><F.F006( **8O7(
\=440H:0(HI(!=G><(=B(EPP0./;6(KL(CO*X*6("?<I(8C6(*ON@6(**8O7(
)Q+(-0?=45(#=><F.F06(**@XI
ARTICLE 2131 .................................................................................. 1130
!"##$%&'( )*+( hA.<( -P0?:./( R.c;( K=H0>46( **@X7( )8+( dP;0<(
U>:?06( **@X7( )@+( Z4;G>.4?06( **@X7( )C+( ,$iG:<]( =B( L050DP<:=41(
2:;<:4FG:;A05( B>=D( ,L:FA<( =B( L050DP<:=416( **@*7( L=;./0;( HI(
fJ=.6( KL( C88N86( Y0JI( 8N6( *ON@6( **@*7( ZY!( -0>H:?0( R0.;:4F(
.45( E??0P<.4?0( !=>P=>.<:=4( HI( [04.4?:=( %0>.6( RV8*M8X6( `.4I(
@X6( *OSM6( **@*7( R=4g.D0( HI( ED=>0;6( RVQ@S8X6( `.4I( @*6( *ONQ6(
**@87( !=4?A.6( 0<( ./I( HI( 9=4I( 2:H:4.F>.?:.6( RV8MXC86( -0PI( @X6(
*ON*6(**@@7(U05>=(2:D.;.?.<(.45($>40;<=(L=J/0;(HI(&A0(!=G><(
=B( EPP0./;6( 0<( ./I6( RV8SQMQ6( Y0JI( 8M6( *OSO6( **@@7( K=>=;P0( HI(
-.4<=;6( RV@XXMO6( `.4I( @X6( *OMS6( **@C7( 20H0/=PD04<( \.4e( =B(
<A0(UA:/:PP:40;(HI(#:>.4F6(RV8O*@X6(EGFI(N6(*OMQ6(**@C7(Z4(L0(
Petition for the Cancellation of Encumbrances Appearing in
&>.4;B0>( !0><:3?.<0;( =B( &:</0;6( %:?.4=>( &I( -.4<=;6( P0<:<:=40>6(
RV8M@QN6( Y0JI( 8X6( *ON*6( **@Q7( \=440H:0( HI( !=G><( =B( EPP0./;6(
KL(CO*X*6("?<I(8C6(*ON@6(**@Q7(K>.H:4.(HI(!E6(88X(-!LE(*MN(
)*OO@+6(**@S7(9:Vf:0/5(L0./<]6(Z4?I(HI((!E6(0<?I6(KL(*@NOMN6(-0PI(
*86(8XX86(**@S7()Q+(L050DP<:=4(U>:?0(cA04(2\U(:;(#=><F.F006(
**@M7( 2\U( HI( h0;<( %0F>=;(!=//0F06( Z4?I6( KL( *Q8@QO6( "?<I( 8N6(
8XX86(**@MI

CHAPTER 4 ANTICHRESIS ............................................................ 1139

ARTICLE 2132 .................................................................................. 1139
!"##$%&'()*+(,E4<:?A>0;:;1(2034056(**@O7()8+(!A.>.?<0>:;<:?;6(
**@O7()@+(2:;<:4FG:;A05(B>=D(,U/05F01(.45(,#=><F.F016(**@O7()C+(
U>=J/0D6( **CX7( )Q+( `G>:;P>G504?06( **CX7( -.D=4<0( HI( !E6( KL(
CCNC*6( `.4I( 8M6( *ONS6( **CX7( L.D:>0g( HI( !E6( KL( @N*NQ6( -0PI(
24, 1986, 1140.
ARTICLE 2133 .................................................................................. 1141
!"##$%&'()*+(d;0(=B(kE?<G./(#.>e0<([./G0l6(**C*7()8+(Z4<0>-
0;<(#G;<(%=<(\0(d;G>:=G;6(**C*I

lxxxv
 ARTICLE 2134 .................................................................................. 1141
!"##$%&'()*+(Y=>D6(**C*7()8+(U>:4?:P./("J/:F.<:=46(**C*I

ARTICLE 2135 .................................................................................. 1141

!"##$%&'()*+("J/:F.<:=4;(=B(<A0(!>05:<=>6(**C87()8+($BB0?<;(:B(
!>05:<=>(2=0;(4=<(U.](<A0(U>=P0>(&.b0;6(**C87()@+(LG/0(:B(<A0(
Y>G:<;(E>0(Z4;GB3?:04<6(**C8I

ARTICLE 2136 .................................................................................. 1142

!"##$%&'( )*+( hA04( 20J<=>( !.4( L0.?iG:>0( <A0( $4^=]D04<(

=B(<A0(ZDD=H.J/06(**C87()8+(hA.<(!>05:<=>(!.4(2=(<=($b0DP<(
9:D;0/B( B>=D( <A0( U.]D04<( =B( &.b0;( .45( %0?0;;.>]( L0P.:>;6(
**C@7()@+(L0:DJG>;0D04<(:4(Y.H=>(=B(!>05:<=>6(**C@I

ARTICLE 2137 .................................................................................. 1143

!"##$%&'( U>=A:J:<:=4( EF.:4;<( U.?<GD( !=DD:;;=>:GD( EP-

plicable, 1143.

ARTICLE 2138 .................................................................................. 1143

!"##$%&'(d;G>:=G;(L.<0;(U>=A:J:<056(**CCI

ARTICLE 2139 .................................................................................. 1144

!"##$%&'(EPP/:?.J:/:<](=B("<A0>(E><:?/0;6(**CCI

CHAPTER 5 CHATTEL MORTGAGE ............................................ 1146

ARTICLE 2140 .................................................................................. 1146

!"##$%&'()*+(L0iG:;:<0;(B=>(<A0(Y=>D(=B(.(!A.<<0/(#=><F.F06(
**CS7()8+(2034:<:=46(**CM7()@+(hA04(#=><F.F0(#G;<(\0(L0F:;-
<0>05(:4(&c=(L0F:;<>:0;6(**CM7()C+(9=G;0(.;(<A0(-GJ^0?<(#.<<0>(
=B(.(!A.<<0/(#=><F.F06(**CM7(%.H.>>=(HI(U:405.6(RV*NCQS6(%=HI(
@X6(*OS@6(**CN7()Q+(ZB($b0?G<05(J](.(h:B06(**CO7()S+(!.;0;6(**CO7(
-0>H:?0c:50( -P0?:./:;<;6( Z4?I( HI( !E6( MX( -!E2( Q8O6( 8QS( -!LE(
SCO( )*OOS+6( **CO7( 2\U( HI( !E( _( $D0>./5( L0;=><( 9=<0/( !=>PI6(
KL(*8QN@N6(`G4I(*X6(8XX@6(**COI

ARTICLE 2141 .................................................................................. 1150

!"##$%&'()*+(EPP/:?.J:/:<](=B(<A0(U>=H:;:=4;(=4(U/05F06(**QX7(
)8+( 203?:04?]( `G5FD04<;6( **QX7( )@+( %=( L0F:;<>]( =B( \G:/5:4F;6(
**Q*7()C+(%=(%0?0;;:<](=B([0>](20<.:/05(20;?>:P<:=4(=B(<A0(!A.<-
<0/(#=><F.F06(**Q*7()Q+("c40>;A:P(=B(L04<./;(E??>G05(2G>:4F(
U0>:=5(=B(L050DP<:=46(**Q*7(&GD./.5(HI([:?04?:=6(C*(-!LE(*C@6(
**Q*7()S+(!A.<<0/(#=><F.F00(U>0B0>>05("H0>(`G5FD04<(!>05:<=>(
=B(#=><F.F=>6(**Q87(%=><A0>4(#=<=>;6(Z4?I(HI(9=4I(`=>F0(!=iG:.6(
RVCXX*N6(EGFI(8O6(*OMQ6(**Q87()M+(hA04(.(&A:>5(U0>;=4(\0?=D0;(
-=/:5.>:/](\=G45(h:<A(20J<=>6(**Q8I

lxxxvi
Title XVII. EXTRA-CONTRACTUAL OBLIGATIONS ..................... 1153

CHAPTER 1 QUASI-CONTRACTS .................................................. 1153

ARTICLE 2142 .................................................................................. 1153
!"##$%&'( )*+( 2034:<:=4( =B( ,aG.;:( !=4<>.?<;16( **Q@7( d4:=4(
Z4;G>.4?0( -=?:0<]( =B( !.4<=4( HI( !E6( M@( -!E2( *S@( )*OOS+6(
**Q@7(#!($4F:400>:4F(HI(!E6(KL(*XCXCM6(EP>I(@6(8XX86(**QC7(
)8+( \.;0;( B=>( aG.;:V!=4<>.?<;6( **QC7( ( )@+( $b.DP/0;( =B( aG.;:V(
!=4<>.?<;6(**QC7()C+($b.DP/0(=B(.(-:<G.<:=4(hA04(&A0>0(Z;(%=(
aG.;:V!=4<>.?<6( **QC7( )Q+( !.;0( hA0>0( &A0>0( h.;( %=( d4^G;<(
$4>:?AD04<6( **QQ7( U0>D.404<( !=4?>0<0( U>=5G?<;( HI( 2=4.<=(
&0=5=>=6(0<(./I6(RV8OMSS6(%=HI(8O6(*OSN6(**QQI
ARTICLE 2143 .................................................................................. 1155
!"##$%&'( $4GD0>.<:=4( :4( <A0( !:H:/( !=50( %=<( $b?/G;:H06(
1155.

Section 1 NEGOTIORUM GESTIO ................................................. 1156

ARTICLE 2144 .................................................................................. 1156
!"##$%&'()*+($;;04<:./(L0iG:;:<0;(B=>(k%0F=<:=>GD(K0;<:=l6(
**QS7()8+($b.DP/0;6(**QMI
ARTICLE 2145 .................................................................................. ( **QM
!"##$%&'( 2:/:F04?0( L0iG:>05( =B( <A0( "BB:?:=G;( #.4.F0>6(
**QMI
ARTICLE 2146 .................................................................................. ( **QM
!"##$%&'( )*+( 20/0F.<:=4( =B( 2G<:0;( =B( "B3?:=G;( #.4.F0>6(
**QM7()8+(-=/:5.>](R:.J:/:<](=B(<A0(K0;<=>;6(**QNI
ARTICLE 2147 .................................................................................. 1158
!"##$%&'(R:.J:/:<](B=>(Y=><G:<=G;($H04<;6(**QNI
ARTICLE 2148 .................................................................................. 1158
!"##$%&'("<A0>(Z4;<.4?0;(=B(R:.J:/:<](B=>(Y=><G:<=G;($H04<;6(
1158.
ARTICLE 2149 .................................................................................. 1158
!"##$%&'( $BB0?<( =B( L.<:3?.<:=4( \]( <A0( "c40>( =B( <A0( \G;:-
ness, 1159.
ARTICLE 2150 .................................................................................. 1159
!"##$%&'()*+(-P0?:3?(R:.J:/:<:0;(=B(<A0("c40>($H04(:B(&A0>0(
Z;( %=( L.<:3?.<:=46( **QO7( )8+( LG/0( :B( <A0( "c40>( Z;( .( #:4=>6(
1159.
ARTICLE 2151 .................................................................................. 1159
!"##$%&'(R:.J:/:<]($H04(:B(%=(\0403<(=>(2.4F0>(**SXI

lxxxvii
 ARTICLE 2152 .................................................................................. 1160
!"##$%&'( U0>;=4./( R:.J:/:<]( =B( <A0( "B3?:=G;( #.4.F0>( &=-
wards Third Persons, 1160.
ARTICLE 2153 .................................................................................. 1160
!"##$%&'( !.G;0;( B=>( <A0( $b<:4FG:;AD04<( =B( <A0( "B3?:=G;(
#.4.F0D04<6(**SXI

Section 2 SOLUTIO INDEBITI ........................................................ 1161

ARTICLE 2154 .................................................................................. 1161
!"##$%&'()*+(,-=/G<:=(Z450J:<:1(2034056(**S*7()8+(L0iG:;:<0;(
B=>(-=/G<:=(Z450J:<:6(**S*7()@+($b.DP/0;(=B(-=/G<:=(Z450J:<:6(**S*7(
UG].<(.45(-=4;(HI(-.>D:04<=6(RV*MCCM6(EP>I(@X6(*OS@6(**S8I

ARTICLE 2155 .................................................................................. 1162

!"##$%&'(U.]D04<(\0?.G;0(=B(2=GJ<BG/(=>(2:B3?G/<(aG0;<:=4(
=B( R.c6( **S87( K/=J0( #.?e.]( !.J/0( .45( L.5:=( !=>PI6( 0<( ./I( HI(
%RL!6(0<(./I6(KL(MC*QS6(`G4I(8O6(*ONN6(**S@I

ARTICLE 2156 .................................................................................. 1164

!"##$%&'(U.]D04<(#.50(\0?.G;0(=B(2=GJ<6(**SCI

ARTICLE 2157 .................................................................................. 1164

!"##$%&'(-=/:5.>](R:.J:/:<](=B(<A0(U.]00;6(**SQI

ARTICLE 2158 .................................................................................. 1165

!"##$%&'(LG/0(hA04(U>=P0><](\0/=4F;(<=(.(&A:>5(U0>;=46(
1165.

ARTICLE 2159 .................................................................................. 1165

!"##$%&'(LG/0(:B(U.]00(Z;(:4(\.5(Y.:<A6(**SQI

ARTICLE 2160 .................................................................................. 1166

!"##$%&'(R:.J:/:<](=B(.(U.]00(:4(K==5(Y.:<A6(**SSI

ARTICLE 2161 .................................................................................. 1166

!"##$%&'(L0:DJG>;0D04<(B=>(ZDP>=H0D04<(.45($bP04;0;6(
1166.
ARTICLE 2162 .................................................................................. 1166
!"##$%&'(L:FA<(=B(.(U.]00(hA=(20;<>=];(<A0($H:504?0;(=>(
U>==B;(=B(9:;(L:FA<6(**SMI
ARTICLE 2163 .................................................................................. ( **SM
!"##$%&'(hA04(#:;<.e0(Z;(U>0;GD056(**SMI

lxxxviii
Section 3 OTHER QUASI-CONTRACTS ........................................ ( **SM
(New, except Articles 2164 and 2165.)

ARTICLE 2164 .................................................................................. ( **SM

!"##$%&'(-GPP=><(K:H04(J](.(-<>.4F0>6(**SNI
ARTICLE 2165 .................................................................................. 1168
!"##$%&'( YG40>./( $bP04;0;( \=>40( \]( .( &A:>5( U0>;=46(
1168
ARTICLE 2166 .................................................................................. 1168
!"##$%&'(LG/0(:B(-GPP=><(Z;(d4^G;</](L0BG;056(**SNI
ARTICLE 2167 .................................................................................. 1169
!"##$%&'(-0>H:?0;(L0450>05(\](.(UA];:?:.4(=>("<A0>(U0>-
sons, 1169.

ARTICLE 2168 .................................................................................. 1169

!"##$%&'( LG/0( hA04( U>=P0><]( Z;( -.H05( 2G>:4F( .( !./.D-

ity, 1169.

ARTICLE 2169 .................................................................................. 1169

!"##$%&'( LG/0( hA04( K=H0>4D04<( d450><.e0;( %0?0;;.>](

h=>e6(**SOI

ARTICLE 2170 .................................................................................. ( **MX

!"##$%&'( LG/0( hA04( #=H.J/0;( .>0( !=DD:4F/05( =>( !=4-

BG;056(**MXI

ARTICLE 2171 .................................................................................. ( **MX

!"##$%&'(hA04(R=;<(U0>;=4./(U>=P0><](:;(Y=G456(**MXI

ARTICLE 2172 .................................................................................. ( **M*

!"##$%&'( L0:DJG>;0D04<( B=>( %0?0;;.>]( .45( d;0BG/( $b-

P04;0;6(**M*I

ARTICLE 2173 .................................................................................. ( **M*

!"##$%&'(U.]D04<(#.50(\](.(&A:>5(U0>;=46(**M*I

ARTICLE 2174 .................................................................................. ( **M*

!"##$%&'(#0.;G>0(B=>(U>=<0?<:=4(20?:505(dP=4(\](.(!=D-
DG4:<]6(**M8I
ARTICLE 2175 .................................................................................. ( **M8
!"##$%&'(hA04(-=D0=40(Z;(!=4;<>.:405(<=(U.](E4=<A0>1;(
&.b0;6(**M8I

lxxxix
CHAPTER 2 QUASI DELICTS ......................................................... ( **M@
ARTICLE 2176 ................................................................................. ( **M@
!"##$%&'( )*+( L0iG:;:<0;( B=>( .( aG.;:V20/:?<( )!G/P.( EiG:/-
:.4.+6(**M@7(RL&(HI(%.H:5.56(KL(*CQNXC6(Y0JI(S6(8XX@6(**M@7(
UA=04:b( !=4;<>G?<:=46( Z4?I( HI( ZE!6( KL( SQ8OQ6( #.>I( *X6( *ONM6(
**MC7(&0.FG0(HI(Y0>4.450g6(Q*(-!LE(*N*6(**MQ7(U0=P/01;(\.4e(
.45(&>G;<(!=I(HI(2.A:?.4(RGDJ0>(!=I6(RV*MQXX6(#.](*S6(*OSM6(
**MQ7( U04G//.>( HI( UA:/:PP:40( %.<:=4./( \.4e6( KL( @8MS86( `.4I(
8M6(*ON@6(**MS7(U>:D.(#./:P=/(HI(R:/](R:D(&.46(0<(./I6(RV8MM@X6(
`.4I(8*6(*OMC6(**MS7(U0=P/0(HI(!.P://.;6(RV@NMQS6(%=HI(*@6(*ONC6(
**MS7( UA=04:b( !=4;<>G?<:=46( Z4?I( HI( ZE!6( KL( SQ8OQ6( #.>I( *X6(
*ONM6(**MS7([./04gG0/.(HI(!E6(SN(-!E2(**@()*OOS+6(**MS7()8+(
,!G/P.(EiG:/:.4.1(2:;<:4FG:;A05(B>=D(,!G/P.(!=4<>.?<G./1(.45(
,!G/P.(!>:D:4./16(**MM7(-]iG:.6(0<(./I(HI(!E(_(#.4:/.(#0D=-
>:./( U.>e( !0D0<0>]6( Z4?I6( KL( ONSOQ6( `.4I( 8M6( *OO@6( **MO7( )@+(
%0?0;;:<](=B(U>=H:4F(%0F/:F04?06(**MO7(\0>4.J0(EB>:?.6(0<(./I(HI(
!./<0b6(0<(./I6(RV*8ONS6(#.>I(@*6(*OSS6(**MO7(L0PGJ/:?(HI(RGg=4(
-<0H05=>:4F(!=>P=>.<:=46(RV8*MCO6(-0PI(8O6(*OSM6(**NX7(%ZE6(0<(
./I(HI(ZE!6(0<(./I6(KL(M@O*O6(-0PI(*N6(*OO86(**NX7(R0.A(E/0;4.(
L0]0;6( 0<( ./I( HI( -:;<0>;( =B( #0>?]( 9=;P:<./6( 0<( ./I6( KL( *@XQCM6(
"?<I(@6(8XXX6(**N*7()C+(2.D4GD(EJ;iG0(Z4^G>:.6(**N87(Y.>=/.4(
HI(-=/D.?(#.>e0<:4F(!=>PI6(KL(N@QNO6(#.>I(*@6(*OO*6(**N87()Q+(
R.;<(!/0.>(!A.4?06(**NC7("4F(HI(#0<>=P=/:<.4(h.<0>(2:;<>:?<6(
*XC(UA:/I(@ON6(**NQ7(U:?.><(HI(-D:<A6(@M(UA:/I(NXO6(**NQ7(UA=04:b(
!=4;<>G?<:=46(Z4?I(HI(ZE!6(KL(SQ8OQ6(#.>I(*X6(*ONM6(**NS7()S+(
&=><(R:.J:/:<](#.](-<://($b:;<(20;P:<0(U>0;04?0(=B(!=4<>.?<G./(
L0/.<:=4;6( **NM7( E:>( Y>.4?0( HI( !.>>.;?=;=6( RV8*C@N6( -0PI( 8N6(
*OSS6(**NM7(`G/:.4(!I(-:4F;=4(.45(L.D=4.(50/(!.;<://=(HI(\.4e(
=B(<A0(UA:/:PP:40(Z;/.45;(.45(-.4<:.F=(Y>0:b.;6(RV8CN@M6(`G4I(
8M6(*OSN6(**NM7()M+(%=4V/:.J:/:<]6(**NN7(%F(HI(L0PGJ/:?6(RV@*O@Q6(
`.4I( 8C6( *ONX6( **NN7( )N+( E4( d4>0F:;<0>05( 2005( =B( -./06( **NN7(
$iG:<.J/0( R0.;:4F( !=>PI( HI( RG?:<.( -G]=D6( 0<( ./I6( KL( *C@@SX6(
Sep. 5, 2002, 1188.

ARTICLE 2177 .................................................................................. 1189

!"##$%&'( )*+( !G/P.( EiG:/:.4.( 2:;<:4FG:;A( Y>=D( !:H:/( R:-

.J:/:<]( E>:;:4F( Y>=D( .( !>:D06( **NO7( )8+( $BB0?<( =B( E?iG:<<./( :4(
.(!>:D:4./(!.;06(**NO7(#.>?:.(HI(!=G><(=B(EPP0./;6(KL(@CQ8O6(
`.4I(8M6(*ON@6(**NO7()@+(aG0>]6(**OX7(\.<.4F.;6(R.FG4.6(&.].-
bas, Bus Co., Inc. v. Court of Appeals, et al., L-33138-39, Jun.
8M6( *OMQ6( **OX7( )C+( LG/0( G450>( <A0( *ONQ( LG/0;( =B( !=G><6( E;(
ED04505( :4( *ONN6( **O*7( K.>?:.( HI( Y/=>:5=6( RV@QXOQ6( EGFI( @*6(
*OM@6(**O*7(!>:;P:4(EJ0//.4.(.45(Y>.4?:;?=(EJ0//.4.(HI(9=4I(
K0>=4:D=(LI(#.>.G0(.45(K0>=4:D=(!=DP.40>6(0<(./I6(RV8MMSX6(
#.](8O6(*OMC6(**O87($;?G0<.(HI(Y.45:./.46(RV@OSMQ6(%=HI(8O6(
*OMC6( **O@7( )Q+( %=( 2=GJ/0( L0?=H0>]6( **O@7( U.5G.6( 0<( ./I( HI(
L=J/0;6( 0<( ./I6( RVCXCNS6( EGFI( 8O6( *OMQ6( **O@7( )S+( 20?I( *6( 8XXX(
ED04505(LG/0;6(**OC7(EH0/:4=(!.;GP.4.4(_(L=J0><=(!.P:<G/=(
HI(#.>:.(R/.H=>0(R.>=].6(KL(*CQ@O*6(EGFI(8S6(8XX86(**OCI

xc
ARTICLE 2178 .................................................................................. 1196
!"##$%&'()*+(EPP/:?.J:/:<](=B(-=D0(U>=H:;:=4;(=4(%0F/:F04?06(
**OS7( )8+( !.;0;6( **OM7( L=4iG://=6( 0<( ./I( HI( -:4F;=46( )!IEI+( RV
88S*8(L6(EP>I(886(*OQO6(**OM7([5.I(50(ZDP0>:./6(0<(./I(HI(90>./5(
Lumber Co., L-14088-89, L-14112, Sep. 30, 1961, 1198.
ARTICLE 2179 ................................................................................. 1198
!"##$%&'( )*+( $BB0?<( =B( -=/0( !.G;0( =B( Z4^G>]( :;( .( U0>;=41;(
=c4(%0F/:F04?06(**ON7()8+($BB0?<(=B(!=4<>:JG<=>](%0F/:F04?0(=B(
U/.:4<:BB6(**ON7()@+(U>=b:D.<0(!.G;06(**OO7(-.<G>4:4=(\.].;04(
HI(!=G><(=B(EPP0./;6(RV8QMNQ6(Y0JI(8N6(*ON*6(**OO7(UA=04:b(!=4-
;<>G?<:=46(Z4?I(HI(ZE!6(KL(SQ8OQ6(#.>I(*X6(*ONM6(**OO7(UA=04:b(
!=4;<>G?<:=46(Z4?I(HI(ZE!6(KL(SQ8OQ6(#.>I(*X6(*ONM6(*8XX7()C+(
$b.DP/0;(=B(U>=b:D.<0(!.G;06(*8X87()Q+(!.;06(*8X@7(##&!(_(
EP=/:4.>:=(E^=?(HI(!E6(0<?I6(KL(*C*XNO6(EGFI(*6(8XX86(*8X@I
ARTICLE 2180 .................................................................................. 1204
!"##$%&'()*+(R:.J:/:<](B=>(<A0(E?<;(.45("D:;;:=4;(=B(E4=<A0>6(
*8XQ7()8+(L0.;=4(B=>(<A0(R:.J:/:<]6(*8XQ7()@+(-=/:5.>](R:.J:/:<]6(
*8XQ7(#.>:.(&0>0;.(!G.5>.(HI(E/B=4;=(#=4B=><6(RV(8C*X*6(-0PI(
@X6( *OMX6( *8XS7( R:J:6( 0<( ./I( HI( ZE!6( 0<( ./I6( KL( MXNOX6( -0PI( *N6(
*OO86(*8XS7()C+("c40>;(.45(#.4.F0>;6(*8XM7(UA:/I(L.JJ:<(\G;(
Lines Inc., et al. v. Phil. Am. Forwarders, Inc., et al., L-25142,
#.>I(8Q6(*OMQ6(*8XM7()Q+($DP/=]0>;6(*8XN7([:4/G.4(HI(!=G><(=B(
EPP0./;6(RV8*CMMVN*6(EP>I(8O6(*OSS6(*8XO7(L.D=;(HI(U0P;:V!=/.6(
RV88Q@@6( Y0JI( O6( *OSM6( *8XO7( \0>4.>5=( `=?;=4( .45( #.>:.( 2I(
`=?;=4( HI( L0504?:=4( K/=>:=;=6( RV88SNS6( `.4I( @X6( *OSN6( *8*X7(
#./:P=/( HI( &.46( RV8MM@X6( `.4I( 8*6( *OMC6( QC( -!LE( 8X8( )*OMC+6(
*8**7(-<I(Y>.4?:;(9:FA(-?A==/(HI(!E6(KL(N8CSQ6(Y0JI(8Q6(*OO*6(
*8**7( Y:FG>.?:=4( [5.I( 50( #.F/.4.6( 0<( ./I( HI( `G5F0( Y>.4?:;?=(
WI( !=4;=/.?:=4( _( E3;?=( Z4;G>.4?0( !=>PI6( KL( SXQXS6( EGFI( S6(
*OO86(*8*C7(K=(HI(ZE!6(KL(SN*@N6(#.](*@6(*OO*6(*8*C7(K0=>F0(
#?e00(_(E>.>0/=(T=A(#?e00(HI(ZE!6(`.:D0(&.].F(_(L=;./:45.(
#.4./=6(KL(SN*X86(`G/I(*S6(*OO86(*8*M7((-.4(#:FG0/(!=>PI(HI(
90:>;(=B(-.J:.4=(Z4FG:<=(_(`G/:G;("G.4=6(KL(*C*M*S6(`G/I(C6(
8XX86(*8*N7(K0=>F0(#?e006(0<(./I(HI(ZE!6(0<(./I6(KL(SN*X86(`G/I(
*S6( *OO86( *8887( %.P=?=>( HI( !E6( KL 119121, Aug. 14, 1998,
*8887( YKd( Z4;G>.4?0( !=>PI( HI( !E6( Y:/?.>( &>.4;P=><6( Z4?I( _(
Y=><G40( Z4;G>.4?0( !=>PI6( KL( **NNNO6( #.>I( 8@6( *OON6( *88C7(
(6) Liability of Teachers and Heads of Establishments (of Arts
.45( &>.50;+6( *88C7( U./:;=?( HI( \>://.4<0;6( C*( -!LE( QCN6( *88C7(
#.F<:J.]( HI( K.>?:.6( KL( 8NOM*6( `.4I( 8N6( *ON@6( *88Q7( U.;?=( HI(
!YZ6(KL(QC@QM6(EP>I(8Q6(*ONM6(*88Q7()M+(R:.J:/:<](=B(<A0(-<.<06(
*88S7((##&!(_(EP=/:4.>:=(E^=?(HI(!E6($<?I6(KL(*C*XNO6(EGFI(
*6( 8XX86( *88S7( [:?<=>( ">iG:=/.( _( 9=4=>.<.( ">iG:=/.( HI( !E6(
$<?I6(KL(*C*CS@6(EGFI(S6(8XX86(*88M7()N+(-P0?:./(EF04<6(*88M7(
L0PGJ/:?(HI(U./.?:=6(RV8X@886(#.](8O6(*OSN6(*88N7()O+(20B04;06(
*88O7()*X+(U04./(U>=H:;:=4;(:4(!.;0(=B(!>:D0;6(*8@X7()**+(Y.:/-
G>0( =B( 2=?<=>( <=( Y=//=c( #05:?./( U>=?05G>0( :;( .( ?/0.>( Z45:?:.(
=B( %0F/:F04?06( *8@X7( $>/:4.( L.D=;( HI( !=G><( =B( EPP0./;6( KL(
124354, Apr. 11, 2002, 1230.

xci
ARTICLE 2181 .................................................................................. 1235
!"##$%&'( L:FA<( =B( U0>;=4( )hA=( U.];+( <=( K0<( L0:DJG>;0-
D04<6( *8@Q7( -.>e:0;( &=G>;( UA:/I( HI( Z4<0>D05:.<0( EPP0//.<0(
!=G><6(KL(S@M8@6(-0PI(86(*ON@6(*8@QI
ARTICLE 2182 .................................................................................. 1236
!"##$%&'(hA04(.(#:4=>(=>(.4(Z4;.40(U0>;=4(Z;(E4;c0>.J/0(
h:<A(9:;("c4(U>=P0><]6(*8@SI
ARTICLE 2183 .................................................................................. 1236
!"##$%&'(2.D.F0;(!.G;05(\](E4:D./;6(*8@SI
ARTICLE 2184 .................................................................................. 1236
!"##$%&'( )*+( R:.J:/:<]( =B( "c40>( =B( .( #=<=>( [0A:?/06( *8@M7(
)8+(!.;06(*8@M7(#.>?:./(&I(!.05=6(0<(./I(HI(fG(TA0(&A.:6(0<(./I6(
RV8X@O86(20?I(*N6(*OSN6(*8@MI
ARTICLE 2185 .................................................................................. 1238
!"##$%&'(U>0;GDP<:=4(=B(2>:H0>1;(%0F/:F04?06(*8@N7(#:e00(
HI(ZE!6(KL(SN*X86(`G/I(*S6(*OO86(*8@NI
ARTICLE 2186 .................................................................................. 1238
!"##$%&'( 2G<]( =B( "c40>( =B( #=<=>( [0A:?/0( <=( Y:/0( .( \=456(
1238.
ARTICLE 2187 .................................................................................. 1239
!"##$%&'(R:.J:/:<](=B(#.4GB.?<G>0>;6(*8@OI
ARTICLE 2188 .................................................................................. 1239
!"##$%&'(U>0;GDP<:=4(=B(%0F/:F04?0(\0?.G;0(=B(<A0(U=;;0;-
;:=4(=B(2.4F0>=G;(h0.P=4;(=>(-GJ;<.4?0;6(*8@OI
ARTICLE 2189 .................................................................................. 1239
!"##$%&'(R:.J:/:<](=B(#G4:?:P./(-GJ5:H:;:=4;(\0?.G;0(=B(20-
B0?<:H0(L=.5;6(\>:5F0;6($<?I6(*8CX7(KG:/.<?=(HI(!:<](=B(2.FGP.4(
.45(!E6(KL(S*Q*S6(#.>I(8*6(*ONO6(*8CXI
ARTICLE 2190 .................................................................................. 1240
!"##$%&'(R:.J:/:<](=B(U>=P>:0<=>(:B(.(\G:/5:4F(=>(-<>G?<G>0(
Collapses, 1240.
ARTICLE 2191 .................................................................................. 1241
!"##$%&'( "<A0>( R:.J:/:<:0;( =B( U>=P>:0<=>;( =B( \G:/5:4F;( =>(
-<>G?<G>0;6( *8C*7( EG;<:4( 9.>5c.>0( !=I6( Z4?I( .45( E//( -<00/(
U>=5G?<;6( Z4?I( HI( &A0( !=G><( =B( EPP0./;6( 0<( ./I6( RVC*MQC6( Y0JI(
8M6(*OMS6(*8C*I
ARTICLE 2192 .................................................................................. 1242
!"##$%&'( LG/0( :B( <A0( !.G;0( Z;( .( !=4;<>G?<:=4( 20B0?<6(
1242.

xcii
 ARTICLE 2193 .................................................................................. 1242
!"##$%&'( L0;P=4;:J:/:<]( B=>( &A>=c4( =>( Y.//04( &A:4F;6(
1242.
ARTICLE 2194 .................................................................................. 1242
!"##$%&'( )*+( -=/:5.>]( R:.J:/:<]( =B( &=><VY0.;=>;6( *8C87( )8+(
!.;0;6(*8C@7(#0<>=(#.4:/.(&>.4;:<(!=>PI(HI(!E6(C8(-!E2(Q@N(
)*OO@+6( *8C@7( RL&E( _( L=5=/B=( L=D.4( HI( #.>^=>:0( %.H:5.56(
Heirs of the Late Nicanor Navidad & Prudent Security Agency,
KL(*CQNXC6(Y0JI(S6(8XX@6(*8C@I

Title XVIII. DAMAGES ........................................................................... 1244

Z%&L"2d!&"Lf(!"##$%&'(WG/G0<.(HI(U.4(ED0>:?.4(h=>/5(
E:>c.];6(Z4?I6(C@(-!LE(@OM6(*8CC7(E:>(Y>.4?0(HI(!E(.45(#=-
>./0;6(KL(MSXO@6(#.>I(8*6(*ONO6(*8CQ7(&:G(HI(!E6(CS(-!E2(CXN6(
88N(-!LE(Q*()*OO@+6(*8CQI
CHAPTER 1 GENERAL PROVISIONS ......................................... 1246
ARTICLE 2195 ................................................................................. 1246
!"##$%&'( EPP/:?.J:/:<]( <=( E//( T:45;( =B( R0F./( "J/:F.<:=4;6(
1246.
ARTICLE 2196 .................................................................................. 1246
!"##$%&'( )*+( -P0?:./( U>=H:;:=4;( .45( R.c;6( *8CS7( )8+( Z4-
50D4:<]( :4( h=>eD041;( !=DP04;.<:=4( !.;0;6( *8CM7( #:/.F>=;(
YI( [5.I( 50( Y=><0g.( HI( h=>eD041;( !=DP04;.<:=4( !=DD:;;:=4(
.45(<A0(UA:/:PP:40(!A.>:<](-c00P;<.e0;("B3?06(RV8*M*N6(`G4I(
8O6(*OSN6(*8CM7(f;D.0/(#.>:<:D0(!=>PI(HI(EH0/:4=6(KL(C@SMC6(
`G4I(@X6(*ONM6(*8CM7()@+(2:;D:;;./(=B(E?<:=46(*8CO7($4>:iG0(EI(
20B.4<0( HI( 9=4I( E4<=4:=( $I( L=5>:FG0g6( 0<( ./I6( RV8N@NX6( Y0JI(
8M6(*OMS6(*8COI
ARTICLE 2197 .................................................................................. 1249
!"##$%&'( )*+( 2.D.F0;( 2:;<:4FG:;A05( B>=D( Z4^G>]6( *8CO7(
)8+(2.D.F0(h:<A=G<(Z4^G>]6(*8QX7()@+(-=D0(LG/0;(=4(h.:H0>6(
*8QX7()C+(R:.J:/:<](=B(Y:;?./()4=c(U>=;0?G<=>+6(*8QX7(R:D(HI(20(
R0=46(RV88QQC6(EGFI(8O6(*OMQ6(*8QX7()Q+(2.D.F0;(:4([=:5.J/0(
!=4<>.?<;6( *8Q*7( 20H0/=PD04<( \.4e( =B( <A0( UA:/I( HI( !=G><( =B(
EPP0./;6(RV8NMMC6(Y0JI(8N6(*ONX6(OS(-!LE(@C86(*8Q*I
ARTICLE 2198 .................................................................................. 1251
!"##$%&'(E5=P<:=4(=B(<A0(U>:4?:P/0;(=B(<A0(K040>./(R.c(=4(
Damages, 1251.

CHAPTER 2 ACTUAL OR COMPENSATORY DAMAGES ........ 1252

ARTICLE 2199 .................................................................................. 1252
!"##$%&'( )*+( ,E?<G./( =>( !=DP04;.<=>]( 2.D.F0;1( 2034056(
*8Q87( \0><( ";D0m.( .45( E;;=?:.<0;( HI( !=G><( =B( EPP0./;6( KL(

xciii
 QSQCQ6( `.4I( 8N6( *ON@6( *8Q@7( L.5:=( !=DDG4:?.<:=4;( =B( <A0(
UA:/:PP:40;(HI(!=G><(=B(EPP0./;6(RVQQ*OC6(Y0JI(8S6(*ON*6(*8Q@7((
L.D=;(HI(!E6(KL(*8C@QC6(EP>I(**6(8XX86(*8Q@7()8+(%0?0;;:<](=B(
U/0.5:4F6(*8QC7()@+(%0?0;;:<](=B(U>==B6(*8QC7(Z4A0/50>(!=>P=>.-
<:=4(HI(!=G><(=B(EPP0./;6(KL(Q8@QN6(#.](@X6(*ON@6(*8QC7(L.5:=(
!=DDG4:?.<:=4;( =B( <A0( UA:/:PP:40;6( Z4?I( )L!UZ+( HI( R.4<:46( RV
QO@**6(`.4I(@*6(*ONQ6(*8QMI
ARTICLE 2200 ................................................................................. ( *8QM
!"##$%&'( )*+( &c=( T:45;( =B( E?<G./( 2.D.F0;6( *8QM7( -<I(
R=G:;( L0./<]( !=>P=>.<:=4( HI( !=G><( =B( EPP0./;6( RVCSXS*6( %=HI(
*C6( *ONC6( *8QM7( \E( Y:4.4?0( !=>PI( HI( !E6( KL( S*CSC6( #.]( 8N6(
*ONN6(*8QN7(\.<=4F(\GA.](K=/5(#:40;6(Z4?I(HI(!E6(KL(CQXCN6(
`.4I( M6( *ONM6( *8QN7( EFG:/.>( HI( !A.46( KL( 8NSNN6( "?<I( O6( *ONS6(
*8QN7()8+($b.DP/0;(=B(2.m=($D0>F04<06(*8QN7()@+($b.DP/0;(=B(
Lucro Cesante, 1259.
ARTICLE 2201 .................................................................................. 1259
!"##$%&'( )*+( R:.J:/:<]( =B( 20J<=>( :4( !=4<>.?<;( .45( aG.;:V
!=4<>.?<;6( *8SX7( )8+( $b.DP/0;( =B( L0.;=4.J/]( Y=>0;004( =>(
Foreseeable Damages in Contracts, 1260.
ARTICLE 2202 .................................................................................. 1262
!"##$%&'()*+(2.D.F0;(:4(!>:D0;(.45(aG.;:V20/:?<;6(*8S87(
#.>.4.4( HI( U0>0g6( RV888M86( `G4I( 8S6( *OSM6( *8S87( U0=P/0( HI(
-./:F6(RVQ@QSN6("?<I(@*6(*ONC6(*8S@7()8+(hA.<([:?<:D(#G;<(U>=H0(
:4( .( &=><( =>( aG.;:V20/:?<( -G:<6( *8S@7( )@+( d4B.:>( !=DP0<:<:=46(
*8S@7()C+(!=4?0./D04<(=B(.4($b:;<:4F(#.>>:.F06(*8S@7(\G5:=4F(
HI( `G5F0( EP./:;=e6( KL( SX*Q*6( `G4I( 8C6( *ON@6( *8SC7( \>:4.;( HI(
U0=P/06( KL( QX@XO6( %=HI( 8Q6( *ON@6( *8SC7( U0=P/0( HI( !.;<.405.6(
KL(COMN*6(`G4I(8C6(*ON@6(*8SCI

ARTICLE 2203 .................................................................................. 1264

!"##$%&'()*+([:?<:D(#G;<(#:4:D:g0(<A0(2.D.F06(*8SQ7()8+(
\G>504( =B( U>==B6( *8SQ7( )@+( U/.;<:?( -G>F0>]( cA:?A( !=G/5( 9.H0(
\004(U0>B=>D05(:4(<A0(UA:/:PP:40;6(*8SQ7()C+(!.;06(*8SQ7(EJ0-
lardo Lim & Esmadito Gumalan v. CA & Donato H. Gonzales,
KL(*8QN*M6(`.4I(*S6(8XX86(*8SQI

ARTICLE 2204 .................................................................................. 1266

!"##$%&'($BB0?<(=B(EFF>.H.<:4F(=>(#:<:F.<:4F(!:>?GD;<.4?0;6(
1266.

ARTICLE 2205 .................................................................................. 1266

!"##$%&'( 2.D.F0;( <=( $.>4:4F( !.P.?:<]( .45( <=( \G;:40;;6(

*8SS7( !=4;=/:5.<05( U/]c==5( Z45G;<>:0;6( Z4?I( _( 904>]( R00( HI(
!E6(h://:0(TA=6(_(E/B>05(!I9I(TA=6(KL(*X*MXS6(-0PI(8@6(*OO86(
*8SS7( Y>.4?:;?=6( 0<( ./I( HI( Y0>>0>6( `>I6( 0<( ./I6( KL( *C8X8O6( Y0JI(
8N6(8XX*6(*8SMI

xciv
ARTICLE 2206 .................................................................................. 1268
!"##$%&'( )*+( 2.D.F0;( B=>( 20.<A( q( L0.;=4( B=>( Ec.>5:4F(
2.D.F0;6(*8SN7(#?e006(0<(./I(HI(ZE!6(0<(./I6(KL(SN*X86(`G/I(*S6(
*OO86(*8SO7()8+(Y.?<=>;(hA:?A(#.](\0(!=4;:50>05(:4(20<0>D:4-
:4F(<A0(ED=G4<6(*8MX7(#=4g=46(0<(./I(HI(ZE!(.45(&A0=(9I(2.H:0;(
.45(!=I6(Y.>($.;<(R<5I6(KL(M8N8N6(`.4I(@*6(*ONO6(*8MX7(-D:<A(
Bell Dodwell Shipping Agency Corp. v. Catalino Borja and
Z4<0>4.<:=4./(&=c.F0(_(&>.4;P=><(!=>PI6(KL(*C@XXN6(`G4I(*X6(
8XX86(*8MX7([://.VL0](&>.4;:<(HI(\0//=6(RV*NOQM6(EP>I(8@6(*OS@6(
*8M87( 2.H:/.( HI( UA:/I( E:>( R:40;6( CO( -!LE( COM6( *8M87( \G5:=4F(
HI( `G5F0( EP./:;=e6( KL( SX*S*6( `G4I( 8C6( *ON@6( *8M@7( 2.4Fc.(
&>.4;P=><.<:=4( HI( !E6( KL( OQQN86( "?<I( M6( *OO*6( *8M@7( ##&!6(
0<(./I(HI(!E(_(-P;I(L=5=/B=([I(L=;./0;(.45(R:/](LI(L=;./0;6(KL(
**SS*M6( %=HI( *S6( *OON6( *8MC7( )@+( #=>./( 2.D.F0;6( *8MQ7( )C+(
L:FA<(=B(L0?=H0>](%=<(EBB0?<05(\](&0;<:D=4]6(*8MS7(U0=P/0(HI(
-.4<:.F=(#.4=;6(RV8MMO*6(20?I(8C6(*OMX6(*8MS7()Q+(R:.J:/:<](B=>(
L0?e/0;;(ZDP>G504?06(*8MM7(U0=P/0(HI($G<:iG:.(!.>D046(0<(./I6(
KL(*@M8SN6(#.>I(8S6(8XX*6(*8MMI
ARTICLE 2207 .................................................................................. ( *8MM
!"##$%&'( )*+( $BB0?<( :B( U>=P0><]( h.;( Z4;G>056( *8MN7( )8+(
#0.4:4F(=B(kEG<A=>:g05(2>:H0>l(:4(!.>(Z4;G>.4?06(*8MN7(!!!(
Z4;G>.4?0( !=>PI( HI( !=G><( =B( EPP0./;( .45( !.>/=;( YI( L=J0;6( RV
8QO8X6( `.4I( @X6( *OMX6( *8MN7( )@+( -GJ>=F.<:=4( =B( Z4;G>0>6( *8MO7(
Y:>0D.41;( YG45( Z4;G>.4?0( !=I6( 0<( ./I( HI( `.D:/.( .45( !=I6( Z4?I6(
RV8MC8M6(EP>I(M6(*OMS6(*8MOI
ARTICLE 2208 .................................................................................. ( *8MO
!"##$%&'()*+(!=4?0P<(=B(E<<=>40]1;(Y00;(E;(2.D.F0;6(*8NX7(
RGg(KI(!>:;<=J./(HI($DP/=]00;1(!=DP04;.<:=4(!=DD:;;:=46(RV
CO8NX6(Y0JI(8S6(*ON*6(*8N*7(\=>?04.6(0<(./I(HI(ZE!6(KL(MXXOO6(
`.4I(M6(*ONM6(*8N*7(-G4(Z4;G>.4?0("B3?06(R<5I(HI(!E(_(%0>:;;.(
R:D6(KL(O8@N@6(`G/I(*M6(*OO86(*8N*7()8+(K040>.//](%=<(U.><(=B(
2.D.F0;6(*8N87(-./.=(HI(-./.=6(RV8SSOO6(#.>I(*S6(*OMS6(*8N@7(
Public Estates Authority v. Elpidio S. U]6(KL(*CMO@@V@C6(20?I(
*86(8XX*6(*8N@7()@+(K:H04(<=(U.><]6(%=<(<=(!=G4;0/6(*8NC7(&:G(
U=( HI( \.G<:;<.6( RVQQQ*C6( #.>I( *M6( *ON*6( *8NC7( aG:>.4<0( .45(
!>Gg(HI(ZE!6(0<(./I6(KL(M@NNS6(`.4I(@*6(*ONO6(*8NC7()C+($bP>0;;(
-<:PG/.<:=46(*8NC7(T.P=/(HI(#.;.6(RVQXCM@6(`.4I(8*6(*ONQ6(*8NQ7(
)Q+( U.>.F>.PA( 8( )20B045.4<1;( E?<( =>( "D:;;:=4+6( *8NS7( \0><(
";D0m.( .45( E;;=?:.<0;( HI( !=G><( =B( EPP0./;6( KL( QSQCQ6( `.4I(
8N6(*ON@6(*8NS7(-.>D:4F(HI(2]6(KL(*@@SC@6(`G4I(S6(8XX86(*8NS7(
)S+(U.>.F>.PA(@()#./:?:=G;(U>=;0?G<:=4+6(*8NS7()M+(U.>.F>.PA(C(
)d4B=G4505(!:H:/(E?<:=4+6(*8NM7(90>D=;.6(`>I(HI(W=J0/(](L=b.;6(
RV**N@S6("?<I(*OQN6(*8NM7(L=iG0($40>H:5.(HI(R.G>=(50(/.(&=>>0(
.45(L=;.(50(/.(&=>>06(RV@NX@M6(`.4I(8N6(*OMC6(*8NM7(#0<>=P=/:-
<.4(\.4e(HI(&.4(!AG.4(R0=4F6(0<(./I6(KL(CSQ@O6(`G4I(8Q6(*ONS6(
*8NN7(UA=04:b(UGJ/:;A:4F(9=G;0(HI(L.D=;6(KL(@8@@O6(#.>I(8O6(
*ONN6( *8NO7( )N+( U.>.F>.PA( Q( )\.5( Y.:<A( =B( 20B045.4<+6( *8OX7(
)O+( U.>.F>.PA( N( )h=>eD041;( !=DP04;.<:=4( .45( $DP/=]0>1;(
R:.J:/:<]+6(*8O*7()*X+(U.>.F>.PA(O()!:H:/(R:.J:/:<](E>:;:4F(B>=D(

xcv
 a !>:D0+6( *8O*7( $J.^.4( HI( !E6( KL( MMO@XV@*6( Y0JI( O6( *ONO6(
*8O*7()**+(U.>.F>.PA(**()E4]("<A0>(!.;0+6(*8O87()*8+(Instance
hhen the Insurance Code Grants D.D.F0;6(*8O@7(U>G504<:./(
Guarantee and Assurance, Inc. v. Trans-Asia Shipping, Lines,
Z4?I6(CO*(-!LE(C**()8XXS+6(*8O@I
ARTICLE 2209 .................................................................................. 1293
!"##$%&'()*+(#=40<.>]("J/:F.<:=4;6(*8O@7()8+(LG/0;6(*8O@7(
-<.<0(Z4H0;<D04<(9=G;06(Z4?I(HI(!E6(KL(OXSMS6(`G4I(*O6(*OO*6(
*8OC7(&:=(TA0(!A:=(HI(!E6(KL(MS*X*VX86(-0PI(@X6(*OO*6(*8OQ7(
)@+(EJ;04?0(=B(-<:PG/.<:=46(*8OM7()C+(Y>=D(hA.<(#=D04<(Z4<0>-
0;<( LG4;6( *8OM7( !=4;G0/=( U:?g=46( 0<( ./I( HI( $;<0J.4( U:?g=46( 0<(
./I6( RV8O*@O6( %=HI( *Q6( *OMC6( *8OM7( E>c==5( Z45G;<>:0;6( Z4?I( HI(
2I#I(!=4;G4^:6(Z4?I6(KL(*C88MM6(20?I(**6(8XX86(*8ON7()Q+(aG0>]6(
*@XX7( )S+( L0?=H0>]( =B( Z4<0>0;<( :4( !.;0( =B( d;G>]6( *@XX7( E4F0/(
`=;0( h.>0A=G;:4F( !=I6( Z4?I( HI( !A0/5.( $4<0>P>:;0;( .45( 2.H:5(
-]^G:?=6(RV8QMXC6(EP>I(8C6(*OSN6(*@XX7(K-Z-(HI(!E6(0<(./I6(KL(
Q8CMN6( "?<I( @X6( *ONS6( *@X87( Y/=>045=( HI( 9=4I( LG:g6( 0<( ./I6( KL(
SCQM*6(Y0JI(8*6(*ONO6(*@X@I
ARTICLE 2210 .................................................................................. 1303
!"##$%&'(Z4<0>0;<(=4(2.D.F0;(B=>(\>0.?A(=B(!=4<>.?<6(*@X@7(
U/04=( HI( !=G><( =B( EPP0./;( .45( #.4:/.( K.;( !=>PI6( KL( QSO*O6(
Oct. 23, 1981, 1303.
ARTICLE 2211 .................................................................................. 1304
!"##$%&'( Z4<0>0;<( =4( 2.D.F0;( \0?.G;0( =B( !>:D0;( .45(
aG.;:V20/:?<;6(*@XCI
ARTICLE 2212 .................................................................................. 1304
!"##$%&'(Z4<0>0;<(=4(Z4<0>0;<(2G06(*@XCI
ARTICLE 2213 .................................................................................. 1305
!"##$%&'()*+(Z4<0>0;<(=4(d4/:iG:5.<05(!/.:D;(=>(2.D.F0;6(
*@XQ7( \.>04F( HI( !=G><( =B( EPP0./;6( 0<( ./I6( RV*8OM@6( EP>I( 8Q6(
*OSX6(*@XQ7()8+(%=(R:iG:5.<05("J/:F.<:=46(*@XS7(EJ0/.>5=(R:D(
_($;D.5:<=(KGD.J=4(HI(!E(_(L=4.<=(9I(K=4g./0;6(KL(*8QN*M6(
Jan. 16, 2002, 1306.
ARTICLE 2214 .................................................................................. ( *@XM
!"##$%&'( !=4<>:JG<=>]( %0F/:F04?0( =B( U/.:4<:BB( :4( aG.;:V
20/:?<;6(*@XMI
ARTICLE 2215 .................................................................................. ( *@XM
!"##$%&'(#:<:F.<:=4(=B(2.D.F0;(:4(!=4<>.?<;6(aG.;:V!=4-
<>.?<;6(.45(aG.;:V20/:?<;6(*@XMI

CHAPTER 3 OTHER KINDS OF DAMAGES ................................ 1308

ARTICLE 2216 .................................................................................. 1308
!"##$%&'()*+(hA04(%=(U>==B(=B(U0?G4:.>](R=;;(Z;(%0?0;;.>]6(
*@XN7()8+(%0?0;;:<](=B(U>=H:4F(<A0(Y.?<G./(\.;:;6(*@XN7()@+(In

xcvi
 Civil Case to Lecover or for Lestitution, Leparation of Dam-
ages or I450D4:3?.<:=4(B=>(C=4;0iG04<:./(.45(Other Damages
or Any Other Civil Actions Under the New Civil Code or Other
Existing Laws Filed with Sandiganbayan Against Ferdinand
E. #arcos, et al., the Sandiganbayan is not to Look for Proof
Beyond Leasonable Doubt, but to Determine, based on the
Evidence Presented, in Light of Common Human Experience,
which of the Theories Proferred by the Parties is mere horthy
of C>0504?06(*@XO7(fuchengco v. S.45:F.4J.].46(CMO(-!LE 1
(2006), 1309.

Section 1 MORAL DAMAGES .......................................................... 1309

ARTICLE 2217 .................................................................................. 1309
!"##$%&'()*+(L0iG:;:<0;(B=>(<A0(L0?=H0>](=B(#=>./(2.D.F0;6(
*@*X7( -<I( #.>]1;( E?.50D]( HI( h://:.D( !.>P:<.4=;( _( RG?:.( -I(
Carpitanos, Guada Daniel, James Daniel II, James Daniel, Sr.
_([:H04?:=([://.4G0H.6(KL(*C@@S@6(Y0JI(S6(8XX86(*@**7(U0=P/0(
HI(#.40>=6(8*N(-!LE(NQ()*OO@+6(*@*87(!.>/=<.(UI([./04gG0/.6(
0<( ./I( HI( !E6( 0<( ./I6( KL( QS*SN6( 20?I( 886( *ONN6( *@*87( 2.4.=( HI(
!E6(KL(CN8MS6(-0PI(@X6(*ONM6(*@*@7(\=];.c6(0<(./I(HI(Z4<0>PA:/(
U>=D=<:=4;6(Z4?I6(KL(88QOX6(#.>I(8X6(*ONM6(*@*@7()8+(-=?:./(.45(
Y:4.4?:./( -<.45:4F6( *@*@7( )@+( %005( B=>( !0><.:4( -<0P;6( *@*@7(
)C+( %0?0;;:<]( =B( U0>;=4./( Z4^G>]6( *@*C7( )Q+( LG/0( d450>( <A0(
"/5( R.c6( *@*C7( )S+( #04<./( E4FG:;A6( *@*Q7( L.D=;( HI( L.D=;6(
RV*ONM86(20?I(@6(*OMC6(*@*Q7(ED0>:?.4($bP>0;;(Z4<0>4.<:=4./6(
Z4?I(HI(ZE!(.45(`=;0(#I(E/0^.45>:4=6(%=HI(O6(*ONN6(*@*Q7(U.4(
ED0>:?.4(h=>/5(E:>c.];6(Z4?I(HI(ZE!6(KL(CCCC86(EGFI(@*6(*ONM6(
*@*S7(2.4.=(HI(!E6(KL(CN8MS6(-0PI(@X6(*ONM6(*@*S7()M+(!=G><;(
K:H04(2:;?>0<:=4(<=(Ec.>5(#=>./(2.D.F0;6(*@*M7(U>G504?:.5=(
HI(E//:.4?0(&>.4;P=><(-];<0D6(Z4?I6(KL(@@N@S6(#.>I(*S6(*ONM6(
*@*M7(Z;.J0/:<.([:<./VK=g=4(HI(!E(_(E/0^.45>=(50/.(YG04<06(KL(
*8O*@86(`G/I(N6(*OON6(*@*M7(2\U(HI(!E(_($D0>./5(L0;=><(9=<0/(
!=>PI6(KL(*8QN@N6(`G4I(*X6(8XX@6(*@*NI
ARTICLE 2218 .................................................................................. 1319
!"##$%&'(-04<:D04<./([./G06(*@*OI
ARTICLE 2219 .................................................................................. 1319
!"##$%&'()*+(Z4;<.4?0;()%=<($b?/G;:H0+(hA04(#=>./(2.D-
.F0;( #.]( \0( L0?=H0>056( *@8X7( #.]=( ]( EFP.=.( HI( U0=P/06( KL(
O*8X*6( 20?I( Q6( *OO*6( *@8X7( $iG:<.J/0( R0.;:4F( !=>PI( HI( RG?:<.(
-G]=D6( #.>:;;.( $4.4=6( #]>4.( &.D.]=( _( Y0/:b( "/05.46( KL(
*C@@SX6(-0PI(Q6(8XX86(*@8X7(K.>?:.4=(HI(!E6(0<(./I6(KL(OS*8S6(
EGFI(*X6(*OO86(*@8*7(\0><(";D0m.(.45(E;;=?:.<0;(HI(!=G><(=B(
EPP0./;6(KL(QSQCQ6(`.4I(8N6(*ON@6(*@887(2.>.4F(HI(&](\0/:g.>6(
RV*OCNM6(`.4I(@*6(*OSM6(*@887(ZDP0>:./(HI(W:F.6(RV*OM8S6(EP>I(
*@6(*OSM6(*@887(K.<?A./:.4(HI(20/:D6(KL(QSCNM6("?<I(8*6(*OO*6(
*@8@7(#.]=(](EFP.=.(HI(U0=P/06(KL(O*8X*6(20?I(Q6(*OO*6(*@8@7(
-P;I( aG:;GDJ:4F( HI( #.4:/.( $/0?<>:?( !=I6( KL( *C8OC@6( EP>I( @6(
8XX86(*@8Q7()8+(LG/0(h:<A(L0;P0?<(<=(!=4<>.?<;6(*@8S7(Y:/:4H0;<(

xcvii
 !>05:<(!=>PI(HI(#0450g6(KL(SSC*O6(`G/I(@*6(*ONM6(*@8S7()@+(L0(
U.>I(*()UA];:?./(Z4^G>:0;(\0?.G;0(=B(.(!>:D0+6(*@8M7()C+(L0(U.>I(
@()-05G?<:=46(0<?I+6(*@8N7(U0=P/0(=B(<A0(UA:/:PP:40;(HI(#.>:.4=(
Y=4<.4://.6( RV8Q@QC6( `G4I( 8N6( *OSN6( *@8N7( U0=P/0( HI( #.4./=6(
KL(CON*X6("?<I(*@6(*ONS6(*@8O7(U0=P/0(HI(\=45=]6(C*(SCAD 432
)*OO@+6(*@8O7(U0=P/0(HI($>:?(\.:5(]("D:4<.6(KL(*8OSSM6(`G/I(@*6(
8XXX6(*@8O7()Q+(L0(U.>I(M()R:J0/6(-/.450>6(20B.D.<:=4+6(*@@X7()S+(
L0(U.>I(N()#./:?:=G;(U>=;0?G<:=4+6(*@@X7(E/0^=(#.50>.6(0<(./I(HI(
90:>;( =B( -./H.5=>( R=P0g6( RV@M*XQ6( Y0JI( *X6( *ON*6( *@@*7( U!Z\(
HI(ZE!6(KL(M@S*X6(EP>I(*O6(*OO*6(*@@*7(E/J04;=4($4<0>P>:;0;(
!=>PI6( 0<( ./I( HI( !E( _( $GF04:=( -I( \./<.=6( KL( NNSOC6( `.4I( **6(
*OO@6(*@@*7()M+(L0(U.>I(*X()E><:?/0;(=4(9GD.4(L0/.<:=4;+6(*@@87(
E><G>=( 50( KGgD.4( HI( %RL!6( 0<( ./I6( KL( OXNQS6( `G/I( 8@6( *OO86(
*@@@7()N+(#=>./(.45($b0DP/.>](2.D.F0;(h0>0(%"&(K:H04(:4(
<A0(Y=//=c:4F(!.;0;6(*@@C7(UA:/:PP:40(%.<:=4./(L.:/c.];(HI(!E6(
KL(QQ@CM6("?<I(C6(*ONQ6(*@@S7()O+(R:.J:/:<](=B(<A0(-<.<0(K=H0>4-
D04<./(_(U>=P>:0<.>](YG4?<:=4;6(*@@S7(Y=4<.4://.(HI(#./:.D.46(
KL(QQO*@6(Y0JI(8M6(*OO*6(*@@S7()*X+(!/=;G>0(=B(\.4e(E??=G4<(
2G0( <=( kT:<:4F6l( *@@M7( L0]0;( HI( !=G><( =B( EPP0./;6( KL( OQQ@Q6(
`.4I(8*6(*OO*6(*@@M7()**+(%=(9.>5(.45(Y.;<(LG/06(*@@N7(E]./.(
Z4<0F>.<05( -<00/( #.4GB.?<G>:4F( !=I6( Z4?I( HI( !E6( KL( OC@QO6(
Aug. 2, 1991, 1338.
ARTICLE 2220 .................................................................................. 1338
!"##$%&'( )*+( h://BG/( Z4^G>]( <=( U>=P0><]( .45( \>0.?A0;( =B(
!=4<>.?<;6(*@@N7()8+(!.;06(*@@O7([:?04<0(_(#:?A.0/(R:D(HI(!E6(
KL(**N@CM6("?<I(8C6(*OOS6(MQ(-!E2(QMC6(*@@OI
Section 2 NOMINAL DAMAGES ..................................................... 1339
ARTICLE 2221 .................................................................................. 1339
!"##$%&'( )*+( &A0( K>.4<( =B( %=D:4./( 2.D.F0;( q( L0.;=4(
&A0>0B=>6( *@@O7( RL&( HI( %.H:5.56( KL( *CQNXC6( Y0JI( SI( 8XX@6(
*@CX7( )8+( $BB0?<( =B( K>.4<:4F( !=DP04;.<=>]( .45( $b0DP/.>](
2.D.F0;6(*@CX7(-GD./P=4F(H(!E6(KL(*8@CXC6(Y0JI(8S6(*OOM6(
MO( -!E2( OSO6( *@CX7( U&( _( &( _( R=G:0( !.J./:<( HI( !E( _( R=/:<.(
-:P0($;?=>=6(KL(*@O8SN6(-0PI(@6(8XX86(*@C*7()@+(R:.J:/:<](=B(.(
Negligent Lawyer, 1341.
ARTICLE 2222 .................................................................................. 1342
!"##$%&'(hA04(%=D:4./(2.D.F0;(#.](\0(Ec.>5056((*@C87(
200(9G.(R:=4F($/0?<>:?./($iG:PD04<(!=>PI(HI(L0]0;6(KL(M8*N86(
Nov. 25, 1986, 1342.
ARTICLE 2223 .................................................................................. 1342
!"##$%&'($BB0?<(=B(K>.4<:4F(%=D:4./(2.D.F0;6(*@C8I
Section 3 TEMPERATE OR MODERATE DAMAGES ................ 1342
ARTICLE 2224 .................................................................................. 1342
!"##$%&'( )*+( L0.;=4( B=>( E//=c:4F( &0DP0>.<0( =>( #=50>.<0(
2.D.F0;6( *@C@7( )8+( -GBB0>:4F( =B( -=D0( U0?G4:.>]( R=;;6( *@C@7(

xcviii
 )@+(!.;0;6(*@C@7(!=4;=/:5.<05(U/]c==5(Z45G;<>:0;6(Z4?I6(0<(./I(HI(
!E6(0<(./I6(KL(*X*MXS6(-0PI(8@6(*OO86(*@C@7(L.D=;(HI(!E6(KL(
124354, Apr. 11, 2002, 1344.
ARTICLE 2225 .................................................................................. 1344
!"##$%&'(L0.;=4.J/0(&0DP0>.<0(2.D.F0;6(*@CCI
Section 4 LIQUIDATED DAMAGES ............................................... 1344
ARTICLE 2226 .................................................................................. 1344
!"##$%&'(%.<G>0(=B(R:iG:5.<05(2.D.F0;6(*@CQI
ARTICLE 2227 .................................................................................. 1345
!"##$%&'()*+($iG:<.J/0(L05G?<:=4(=B(R:iG:5.<05(2.D.F0;6(
*@CQ7()8+($BB0?<(=B(U.><:./(=>(Z>>0FG/.>(U0>B=>D.4?06(*@CQI
ARTICLE 2228 .................................................................................. 1345
!"##$%&'( LG/0( :B( \>0.?A( h.;( %=<( !=4<0DP/.<05( :4( <A0(
EF>00D04<(=4(R:iG:5.<05(2.D.F0;6(*@CSI

Section 5 EXEMPLARY OR CORRECTIVE DAMAGES ............ 1346

ARTICLE 2229 .................................................................................. 1346
!"##$%&'( )*+( L0.;=4( B=>( ZDP=;:4F( $b0DP/.>]( =>( !=>>0?-
<:H0(2.D.F0;6(*@CS7(KG:/.<?=(HI(!:<](=B(2.FGP.4(.45(!E6(KL(
S*Q*S6(#.>I(8*6(*ONO6(*@CS7(U>G504?:.5=(HI(E//:.4?0(&>.4;P=><(
-];<0D6(Z4?I6(KL(@@N@S6(#.>I(*S6(*ONM6(*@CM7()8+($b.DP/0;(=B(
$b0DP/.>](2.D.F0;6(*@CM7(U0=P/0(HI($>/:45=(&./=6(KL(*8QQC86(
"?<I( 8Q6( 8XXX6( *@CN7( UA=04:b( !=4;<>G?<:=46( Z4?I( HI( ZE!6( KL(
SQ8OQ6(#.>I(*X6(*ONM6(*@CO7()@+(U>=P0>(!=G><6(*@QX7()C+($BB0?<(
of Granting Exemplary Damages on a Claim for Nominal Dam-
.F0;6(*@QX7()Q+(!.;0;6(*@QX7(U.4(ED0>:?.4(h=>/5(E:>c.];6(Z4?I(
HI(ZE!6(0<(./I6(RVMCCC86(EGFI(@*6(*ONM6(*@QX7(E><G>=(50(KGgD.4(
HI(%RL!6(KL(OXNQS6(`G/I(8@6(*OO86(*@Q*7(-=?:05.5($G>=P0.(50(
Y:4.4?:.?:=46(-IEI6(0<(./I(HI(!=G><(=B(EPP0./;6(KL(MQMNM6(`.4I(
8*6( *OO*6( *@Q*7( %=><Ac0;<( E:>/:40;( HI( 2>I( `.:D0( YI( R.].6( KL(
*CQOQS6(#.](8O6(8XX86(*@Q@I
ARTICLE 2230 .................................................................................. 1356
!"##$%&'( $b0DP/.>]( 2.D.F0;( :4( !>:D:4./( "BB04;0;6(
1356.
ARTICLE 2231 .................................................................................. 1356
!"##$%&'($b0DP/.>](2.D.F0;(:4(aG.;:V20/:?<;6(*@QSI
ARTICLE 2232 .................................................................................. 1356
!"##$%&'()*+($b0DP/.>](2.D.F0;(:4(!=4<>.?<;(.45(aG.;:V
!=4<>.?<;6(*@QM7()8+(hA04($DP/=]0>(Z;(E/;=(R:.J/0(B=>($b0D-
P/.>](2.D.F0;6(*@QM7(R=G>50;(#G4;.].?(HI(\0405:?<.(50(R.>.6(
RV8**Q*6(`G4I(8S6(*OSN6(*@QM7(-:/H0>:=(#.>?A.4(.45(UA:/:PP:40(

xcix
 L.JJ:<(\G;(!=I6(Z4?I(HI(E>;04:=(#045=g.6(0<(./I6(RV8CCM*6(`.4I(
@*6( *OSO6( *@QM7( %=5.( HI( !>GgVE>4./5=6( KL( SM@886( `G4I( 886(
*ONM6(*@QNI
ARTICLE 2233 .................................................................................. 1358
!"##$%&'($b0DP/.>](2.D.F0;(%=<(.(#.<<0>(=B(L:FA<6(*@QN7(
Z;.J0/:<.( [:<./VK=g=4( HI( !E6( _( E/0^.45>=( 50/.( YG04<06( KL(
129132, Jul. 8, 1998, 1358.
ARTICLE 2234 .................................................................................. 1358
!"##$%&'( )*+( ED=G4<( =B( $b0DP/.>]( 2.D.F0;( %005( %=<(
\0(U>=H056(*@QO7()8+(!G/P.(!=4<>.?<G./6(*@QO7()@+(!.;06(*@QO7(
U%\( HI( !E6( -P;I( E4<=4:=( -=( 9G( _( -=/05.5( 50/( L=;.>:=( .45(
-P;I( #.<0=( !>Gg( _( !.>/:<.( L=4iG://=6( KL( *8SOXN6( `.4I( *S6(
2003, 1359.
ARTICLE 2235 .................................................................................. 1360
!"##$%&'(&A0(L04=G4?:4F(:4(E5H.4?0(=B($b0DP/.>](2.D-
ages, 1360.

Title XIX. CONCURRENCE AND PREFERENCE

OF CREDITS ..................................................................................... 1361
CHAPTER 1 GENERAL PROVISIONS .......................................... 1361
INTRODUCTORY COMMENT (Features of the Title) ................... 1361
ARTICLE 2236 .................................................................................. 1361
!"##$%&'( )*+( hA.<( !>05:<=>( !.4( 2=( ZB( 20J<=>( 9.;( %"(
#=40]6(*@S*7()8+($b.DP/0;(=B(U>=P0><:0;($b0DP<(B>=D(E<<.?A-
D04<6(*@S87()@+(!.;06(*@S87(2\U(HI(#:4:;<0>(=B(R.J=>6(KL(MQNX*6(
#.>I(8X6(*OO*6(*@S8I
ARTICLE 2237 .................................................................................. 1363
!"##$%&'( !:H:/( !=50( -GP0>:=>( &=( -P0?:./( R.c;( =4( Z4;=/-
vency, 1364.
ARTICLE 2238 .................................................................................. 1364
!"##$%&'($b0DP<:=4(=B(U>=P0><:0;(=B(<A0(!=4^GF./(U.><40>-
ship or of the Absolute Community, 1364.
ARTICLE 2239 .................................................................................. 1364
!"##$%&'(LG/0(:4(!.;0(=B(!=V"c40>;A:P6(*@SQI
ARTICLE 2240 .................................................................................. 1365
!"##$%&'(U>=P0><](90/5(\0?.G;0(=B(.4($bP>0;;(=>(ZDP/:05(
Trust, 1365.

CHAPTER 2 CLASSIFICATION OF CREDITS ............................ 1366

ARTICLE 2241 .................................................................................. 1366

c
 !"##$%&'( )*+( !>05:<;( "H0>( -P0?:3?( U0>;=4./( U>=P0><:0;6(
*@SM7()8+($b.DP/06(*@SN7()@+(%.<G>0(=B(<A0(!/.:D;(=>(!>05:<;6(
*@SN7( )C+( U.>I( *( q( &.b0;6( 0<?I6( *@SO7( )Q+( U.>I( @( q( d4P.:5(
U>:?0(=B(#=H.J/0;(-"R26(*@SO7()S+(U.>I(C(nn(U/05F0(=>(!A.<<0/(
#=><F.F06(*@SO7()M+(U.>I(S(q(R.J=>0>;1(h.F0;6(*@SO7()N+(R.;<(
U.>.F>.PA( q( h>=4FBG/( &.e:4F6( *@MX7( )O+( !.;06( *@MX7( "G.4=(
HI(!E6(0<(./I6(KL(OQOXX6(`G/I(8@6(*OO86(*@MXI
ARTICLE 2242 .................................................................................. ( *@MX
!"##$%&'( )*+( !>05:<;( "H0>( -P0?:3?( L0./( U>=P0><:0;6( *@M*6(
)8+(!=4?G>>04?06(%=<(U>0B0>04?06(*@M87()@+(C.;06(*@M86(!.>>:05(
RGDJ0>(!=I(HI(E!!YE6(RV8*N@S6(EP>I(886(*OMQ6(*@M87()C+(L0B0?-
<:=4.>](!>05:<6(*@M87()Q+(!.;06(*@M87(E</.4<:?($>0?<=>;6(Z4?I(HI(
90>J./(!=H0(L0./<](!=>PI6(KL(*CSQSN6(#.>I(8X6(8XX@6(*@M8I
ARTICLE 2243 .................................................................................. ( *@MC
!"##$%&'( )*+( %.<G>0( =B( <A0( !/.:D;( =>( !>05:<;6( *@MC7( )8+(
!=DD04<(=B(<A0(!=50(!=DD:;;:=46(*@MCI
ARTICLE 2244 ................................................................................. ( *@MQ
!"##$%&'( )*+( ">50>( =B( U>0B0>04?0( :4( !=440?<:=4( h:<A(
"&9$L(U>=P0><:0;6(*@MS7()8+($b.DP/06(*@MS7()@+(&.b0;6(*@MM7(
)C+(L0(U.>I(*C()">5:4.>](!>05:<;(.45(Y:4./(`G5FD04<;+6(*@MM7(
)Q+(-=D0(20?:505(!.;0;6(*@MM7(`0;G;(K:F.4<0(HI(L0PGJ/:?(-.H-
:4F;(\.4e(.45(L=/.45=(#.//.>:6(RV8OSOS6(%=HI(8O6(*OSN6(*@MM7(
L0]0;( HI( 20( R0=46( RV88@@*6( `G4I( S6( *OSM6( *@MN7( #.4.J.<( HI(
R.FG4.(Y050>.<:=4(=B(Y.?=D.;6(RV8@NNN6(#.>I(*N6(*OSM6(*@MO7(
2\U(HI(9=4I(R.J=>(E>J:<0>(E>:0/(!I(-.4<=;6(0<(./I6(KL(MN8S*V
S86(#.>I(N6(*ONO6(*@MOI
ARTICLE 2245 .................................................................................. 1380
!"##$%&'(E//("<A0>(T:45;(=B(!>05:<;6(*@NXI
CHAPTER 3 ORDER OF PREFERENCE OF CREDITS ............ 1381
ARTICLE 2246 .................................................................................. 1381
!"##$%&'(U>0B0>04?0(=B(<A0(!>05:<;("H0>(-P0?:3?(#=H.J/0;6(
1381.
ARTICLE 2247 .................................................................................. 1381
!"##$%&'(U>=(L.<.(-A.>:4F6(*@N*I
ARTICLE 2248 .................................................................................. 1381
!"##$%&'(U>0B0>04?0(=B(<A0(!>05:<;("H0>(-P0?:3?(ZDD=H.-
bles, 1381.
ARTICIE 2249 ................................................................................... 1382
!"##$%&'(U>=(L.<.(-A.>:4F6(*@N8I
ARTICLE 2250 .................................................................................. 1382
!"##$%&'(hA.<(-A=G/5(\0(2=40(h:<A(<A0($b?0;;6(*@N8I

ci
 ARTICLE 2251 .................................................................................. 1382
!"##$%&'(">50>(=B(U>0B0>04?06(*@N8I

TRANSITIONAL PROVISIONS ............................................................ 1383

ARTICLE 2252 .................................................................................. 1383
!"##$%&'( )*+( !=DD04<( =B( <A0( !=50( !=DD:;;:=4( )L0( %=4(
ZDP.:>D04<(=B([0;<05(L:FA<;+6(*@N@7()8+(hA04(L0<>=.?<:H:<](:;(
E//=c056(*@NC7()@+(,[0;<05(L:FA<1(2034056(*@NC7()C+($b.DP/0(=B(
<A0(%=4VZDP.:>D04<(=B(.([0;<05(L:FA<6(*@NCI
ARTICLE 2253 .................................................................................. 1385
!"##$%&'()*+(!=DD04<(=B(<A0(!=50(!=DD:;;:=4()hA04(<A0(
"/5(.45(<A0(%0c(!=50;(EPP/]+6(*@NQ7()8+(L0?=H0>](=B(2.D.F0;6(
*@NQ7()@+(-G??0;;:=4./(L:FA<;6(*@NQI
ARTICLE 2254 .................................................................................. 1386
!"##$%&'()*+(!=DD04<(=B(<A0(!=50(!=DD:;;:=4()E?<;(!=4-
<>.>](<=(R.c+6(*@NS7()8+(EF.:4;<(hA=D(U>=A:J:<:=4(Z;(2:>0?<056(
1386.
ARTICLE 2255 .................................................................................. 1386
!"##$%&'( E?<;( .45( !=4<>.?<;( h:<A( .( !=45:<:=4( =>( U0>:=56(
*@NS7(Y/=>0;(.45(K.//.4=(HI(-=6(RV8NQ8M6(`G4I(*S6(*ONN6(*@NMI
ARTICLE 2256 .................................................................................. ( *@NM
!"##$%&'( L0H=?.<:=4( .45( #=5:3?.<:=4( =B( E?<;( .45( !=4-
<>.?<;6(*@NMI
ARTICLE 2257 .................................................................................. ( *@NM
!"##$%&'()*+(!=DD04<(=B(<A0(!=50(!=DD:;;:=4()L0'(!:H:/(
-.4?<:=4;( .45( U04./<:0;+6( *@NN7( )8+( EPP/:?.<:=4( =B( <A0( R0;;(
-0H0>0( -.4?<:=46( *@NN7( L0?0:H0>( B=>( %=><A( %0F>=;( -GF.>( !=I6(
Z4?I( HI( fJ.m0g6( RV88*N@6( EGFI( @X6( *OSN6( *@NN7( )@+( #=>./( .45(
Exemplary Damages, 1389.
ARTICLE 2258 .................................................................................. 1389
!"##$%&'(E?<:=4;(.45(L:FA<;(d450>(<A0("/5(R.c6(hA0<A0>(
Exercised or Not, 1390.
ARTICLE 2259 .................................................................................. 1390
!"##$%&'(!.P.?:<](=B(.(#.>>:05(h=D.46(*@OXI
ARTICLE 2260 .................................................................................. 1390
!"##$%&'([=/G4<.>](L0?=F4:<:=4(=B(.(%.<G>./(!A:/56(*@OXI
ARTICLE 2261 .................................................................................. 1390
!"##$%&'( $b0DP<:=4( B=>( -GPP=><6( U04;:=46( =>( K>.<G:<]6(
1391.

cii
 ARTICLE 2262 .................................................................................. 1391
!"##$%&'(KG.>5:.4;(=B(<A0(U>=P0><](=B(#:4=>;6(*@O*I
ARTICLE 2263 .................................................................................. 1391
!"##$%&'( )*+( -G??0;;:=4./( L:FA<;6( *@O*7( )8+( U>==B;( =B( Y:/:-
ation, 1392.
ARTICLE 2264 .................................................................................. 1392
!"##$%&'(-00(<A0(Y.D:/](!=506(*@O8I
ARTICLE 2265 .................................................................................. 1392
!"##$%&'(L:FA<(=B(L0<04<:=4(=B(L0./(=>(U0>;=4./(U>=P0><]6(
1392.
ARTICLE 2266 .................................................................................. 1392
!"##$%&'( U>=H:;:=4;( hA:?A( 9.H0( \=<A( U>=;P0?<:H0( .45(
L0<>=.?<:H0($BB0?<6(*@O@I
ARTICLE 2267 .................................................................................. 1393
!"##$%&'(U>=H:;:=4;(EPP0><.:4:4F(<=(U>=?05G>06(*@O@I
ARTICLE 2268 .................................................................................. 1393
!"##$%&'(-00(<A0(Y.D:/](!=506(*@OCI
ARTICLE 2269 .................................................................................. 1393
!"##$%&'( )*+( EPP/:?.<:=4( J]( E4./=F]( =B( <A0( &>.4;:<:=4./(
U>:4?:P/0;6(*@OC7()8+(LG/0(:4(!.;0(=B(!=4p:?<6(*@OCI
REPEALING CLAUSE ............................................................................ 1395
ARTICLE 2270 ............................................................................ 1395
!"##$%&'( )*+( hA04( -P.4:;A( !:H:/( !=50( h.;( L0P0./056(
*@OQ7( )8+( hA.<( <A0( %0c( !:H:/( !=50( 2=0;( %=<( L0P0./6( *@OQ7(
)@+( !=DP/0<0( L0P0./( =B( <A0( !:H:/( !=50( =B( *NNO6( *@OS7( )C+( &A0(
Family Code, 1396.

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