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1. An oral mortgage is void against innocent third parties but valid between the parties themselves.
 FALSE
Mortgage must be reduced into writing in a public instrument.

In addition to the requisites stated in article 2085, it is indispensable, in order that a mortgage may be validly
constituted, that the document in which it appears be recorded in the Registry of Property. If the instrument is not
recorded, the mortgage is nevertheless binding between the parties.

The persons in whose favor the law establishes a mortgage have no other right than to demand the execution
and the recording of the document in which the mortgage is formalized. (2125)

xxx xxx

The following must appear in a public document:

(1) Acts and contracts which have for their object the creation, transmission, modification or extinguishment
of real rights over immovable property; sales of real property or of an interest therein are governed by
articles 1403, No. 2, and 1405; (1358)

2. An unregistered real estate mortgage may still be the subject of foreclosure.


 TRUE
Provided no 3rd party is involved. (Mobil Phil vs. Diocares)

3. A contract of antichresis that does not specify in writing although it expressly mentioned the
principal amount is void and of no effect at all.
 TRUE
Amount of the principal and interest must be specified in writing. (2134)

4. A chattel mortgage is a real contract because it requires constructive delivery by the registration of
the contract in the chattel mortgage registry.
 FALSE
Chattel Mortgage requires registration and not delivery.

5. What must be contained in affidavit of good faith?


It is an oath in a contract of chattel mortgage wherein the parties “severally swear that the
mortgage is made for the purpose of securing the obligation specified in the conditions thereof and
for no other purposes and that the same is a just and valid obligation and one not entered into for
the purpose of fraud.”

6. A chattel mortgage without an affidavit of good faith is void for all intents and purposes.
 FALSE
It is not necessary for its validity but only to give a preferred status.

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7. A lessee may mortgage the thing leased but only valid during the effectivity of the lease.
 FALSE
The mortgagor must be the absolute owner of the property being mortgage. (see art. 2085 (2) NCC)

8. A mortgage made by a co-owner of a property owned in common without the consent of the other
co-owners produces no legal effect.
 FALSE
Each co-owner shall have the full ownership of his part and of the fruits and benefits
pertaining thereto, and he may therefore alienate, assign or mortgage it, and even
substitute another person in its enjoyment, except when personal rights are involved. But
the effect of the alienation or the mortgage, with respect to the co-owners, shall be
limited to the portion which may be allotted to him in the division upon the termination of
the co-ownership. (493)

9. The nullity of a mortgage does not render null and void the principal obligation.
 TRUE
Invalidity of an accessory obligation produces no effect to the validity of the principal obligation, but
merely makes the principal obligation unsecured.

10. A municipality may not mortgage a patrimonial property being used as a public market.
11. Growing fruits while it is attached to the land may not be proper objects of a chattel mortgage.
 FALSE
Maybe an object of chattel mortgage but shall be treated as a movable although they are still
attached to the tree.

12. A machinery classified as real property under Art. 415 of NCC may be object of a valid chattel
mortgage
 TRUE
Immovable properties registered under chattel mortgage shall be treated as movable properties but
as against third persons they shall be treated as immovables and not movables.

13. A mortgage maybe gratuitous.


 TRUE
In case of Accomodation Mortgagor/Pledgor

14. A mortgage follows the property whoever the possessor may be provided there is a formal
assumption of mortgage by the transferee.
 FALSE
Formal assumption of the transferee is not required. In contracts creating real rights, third persons
who come into possession of the objects of the contract are bound thereby, subject to the
provisions of the Mortgage Law and the Land Registration laws. (1312)

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The mortgage directly and immediately subjects the property upon which it is imposed, whoever
the possessor may be, to the fulfillment of the obligation for whose security it was constituted.
(2126)

15. While the law does not specifically require the delivery of possession of property to the antichresis
creditor, delivery held to be standard characteristic of a contract of antichresis.
 TRUE

16. All immovable properties may be object of a contract of antichresis.


 FALSE
Antichresis pertains to rights over the fruits of the immovable and not to the immovable itself.
(2132)

17. The mortgage extends to both natural and artificial accessions.


 FALSE
Not applicable to artificial accessions.
The mortgage extends to the natural accessions, to the improvements, growing fruits, and the
rents or income not yet received when the obligation becomes due, and to the amount of the
indemnity granted or owing to the proprietor from the insurers of the property mortgaged, or in
virtue of expropriation for public use, with the declarations, amplifications and limitations
established by law, whether the estate remains in the possession of the mortgagor, or it passes
into the hands of a third person. (2127)

18. The parties must agree on the valuation of the fruits for application to the interest and principal of
the debt.
 TRUE
The actual market value of the fruits at the time of the application thereof to the interest
and principal shall be the measure of such application.(2133)

19. The parties may stipulate the taxes and charges upon the estate during the period of antichresis.
 TRUE
The creditor, unless there is a stipulation to the contrary, is obliged to pay the taxes and
charges upon the estate. (2135)
20. The expenses for preservation of the property in antichresis shall be deducted from the fruits of the
same.
 TRUE

The creditor, unless there is a stipulation to the contrary, is obliged to pay the taxes and
charges upon the estate. He is also bound to bear the expenses necessary for its
preservation and repair. The sums spent for the purposes stated in this article shall be
deducted from the fruits. (2135)

21-23. Rights of Antichresis Creditors

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 Rights to the fruits and income of the thing
 To retain the thing until the debt is paid
 To have the thing sold upon non-payment at maturity.

24-26. Obligations of Antichresis Creditors

 To render an account of the fruits to the debtor


 To apply all the fruits, after receiving them. To the payment of interest, if owing, and thereafter
to the principal in accordance with the provisions of Art. 2133 or 2138 of the Civil Code
 To pay the taxes and other charges on the estate, if there has been no stipulation to the
contrary, and to bear the expenses necessary for preservation and repair. The sum spent shall
be deducted from the fruits. (2136)

27. The chattel is deemed to cover only the property described therein and not like or substituted
properties thereafter acquired by the mortgagor not withstanding any contrary stipulation.

 TRUE
Chattel mortgage shall be deemed to cover only the property described therein and not like
or substituted property thereafter acquired. (Tsai v. CA)

28. Stocks in trade which are naturally revolving or floating and perishable goods that are naturally
expected to be replaced may be the proper objects of a chattel mortgage, provided the deed must be
amended every time there is replacement of the goods.

 TRUE
A chattel mortgage can only cover obligations existing at the time the mortgage is
constituted. A promise expressed in a chattel mortgage to cover debts yet to be contracted
may be binding but the security itself arises only after amending the old agreement with the
form prescribed in Chattel Mortgage Law. (Acme Shoes Rubber and Plastic Corp. v. CA)

29. A promise expressed in a chattel mortgage to include debts to be contracted in the future is binding
commitment that can be compelled upon the security itself even if there is no amendment of the old
agreement or the execution of a new one.

 FALSE
A chattel mortgage can only cover obligations existing at the time the mortgage is
constituted. A promise expressed in a chattel mortgage to cover debts yet to be contracted
may be binding but the security itself arises only after amending the old agreement with the
form prescribed in Chattel Mortgage Law. (Acme Shoes Rubber and Plastic Corp. v. CA)

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30. A stipulation in a real estate mortgage prohibiting the mortgagor from selling the mortgage property
without the written consent of the mortgagee is valid because obligation arising from a contract has the
force of law between the contracting parties.

 FALSE

Pactum non aliendo is void. (see 2130)

31. The absence of the written consent of the mortgagee to the sale of the mortgage chattel to a third
party does not affect the validity of the sale although the mortgagor could be criminally liable.

 TRUE
A promise to constitute a pledge or mortgage gives rise only to a personal action between the
contracting parties, without prejudice to the criminal responsibility incurred by him who defrauds
another, by offering in pledge or mortgage as unencumbered, things which he knew were
subject to some burden, or by misrepresenting himself to be the owner of the same. (2092)

32. Stipulations in a contract of antichresis for the extrajudicial foreclosure of the security is void for lack
of legal basis.

 TRUE

The creditor does not acquire the ownership of the real estate for non-payment of the debt within the
period agreed upon.

Every stipulation to the contrary shall be void. But the creditor may petition the court for the payment of
the debt or the sale of the real property. In this case, the Rules of Court on the foreclosure of
mortgages shall apply. (2137)

33. In the real estate mortgage, foreclosure pursuant to act no. 3135 does not require personal notice to
the mortgagor.

 TRUE
Notice shall be given by posting notices of the sale for not less than twenty days in at least
three public places of the municipality or city where the property is situated, and if such
property is worth more than four hundred pesos, such notice shall also be published once a
week for at least three consecutive weeks in a newspaper of general circulation in the
municipality or city. (sec. 3, Act no. 3135)

34. In real estate mortgage and antichresis, the deficiency or excess is for the account or credit of the
debtor unlike in the case of pledge.

 TRUE
See table in 38-41

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35. After the foreclosure of a chattel mortgage on a personal property sold on instalment, the seller
cannot recover the deficiency of the obligation.

 TRUE

Foreclosure of chattel mortgage on the things sold shall bar recovery of any deficiency.
(SUNDIANG AQUINO, COMMERCIAL LAW REVIEWER PAGE 413)

See RECTO LAW

36. The loss of the property mortgaged by a fortuitous event shall necessarily free the debtor-mortgagor
from the principal obligation.

 FALSE

Extinguishment of the accessory will not extinguish the principal obligation because the former
is merely an accessory to the latter.

37. The commitment of a buyer at auction to resell the property to the mortgagor beyond the period of
redemption is not binding unless supported by an independent consideration.

 FALSE
Requisites for conversion of a legal redemption to a conventional one:
1. Voluntary agreement of the parties to extend the redemption period; and
2. The debtor commitment to pay the redemption price on a fixed date. (Gajudo vs.
Traders Royal Bank)

Independent Consideration is not one of its elements.

38-41 Four Distinctions of Chattel Mortgage and Pledge

CHATTEL MORTGAGE PLEDGE


AS TO DELIVERY:

 Not necessary  Necessary

AS TO REGISTRATION:

 Necessary for validity  Not necessary for validity

AS TO PROCEDURE FOR SALE:

 Basis is section 14 of Act No. 1508, as  Basis is Art. 2112 of the New Civil Code
amended

AS TO EXCESS IN THE FORECLOSURE PROCEEDS:

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 excess goes to the debtor.  Debtor is not entitled to the excess


unless otherwise agreed upon or in case
of legal pledge

42-45 Four Distinctions between Chattel Mortgage and Real Estate Mortgage

CHATTEL MORTGAGE REAL ESTATE MORTAGE


PROPERTIES COVERED:

 Generally, Movables  Immovables only


(note: may cover immovables but it will
be treated as a movable which shall only
be binding to the parties of the contract)

APPLICABLE ARTICLES:
 Art. 2140-2141 NCC and Act No. 1508, as  Art. 2180-2092 and 2124-2131 NCC
amended

REGISTRATION:

 Registration is necessary to be valid  Not necessary for its validity

RIGHT OF REDEMPTION:

 No right of redemption after foreclosure  There is right of redemption after


foreclosure.

46. A survivorship agreement that upon the death of one of joint account holders the full amount of
money in their account shall become the property of the survivor is a valid aleatory contract.

 TRUE
See Vitug vs. Ca

47. Betting in basketball games is valid because basketball is a game of skills and not of chance.

 TRUE
See 2019

48. The insolvency of the guarantor entitles the creditor to demand another guarantor even if the
creditor designated the guarantor.

 FALSE

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If the guarantor should be convicted in first instance of a crime involving dishonesty or should
become insolvent, the creditor may demand another who has all the qualifications required in
the preceding article. The case is excepted where the creditor has required and stipulated
that a specified person should be the guarantor. (2057)

49. Future debts of unknown amount may not be guaranteed because there is yet no principal
obligation.

 FALSE
A guaranty may also be given as security for future debts, the amount of which is not yet
known; there can be no claim against the guarantor until the debt is liquidated. A conditional
obligation may also be secured. (2053)

50. Guaranty must be express but exceptionally it could be implied from the acts of the guarantor as in
the guaranty by estoppel.

 FALSE
A guaranty is not presumed; it must be express and cannot extend to more than what is
stipulated therein. (2055)

51. The guarantor may bind himself for more than what the debtor is liable but not for less.

 FALSE

A guarantor may bind himself for less, but not for more than the principal debtor, both as
regards the amount and the onerous nature of the conditions.Should he have bound himself
for more, his obligations shall be reduced to the limits of that of the debtor. (2054)

52. If the parties avail of a contractual provision for an automatic extension, the guarantor will be
released.

 TRUE
An extension granted to the debtor by the creditor without the consent of the guarantor
extinguishes the guaranty. (2079)

53. In case of a merger between the debtor and guarantor the guaranty is extinguish but a sub-
guarantor, if any, is not released.

 TRUE
Merger between the debtor and guarantor merely extinguishes the guaranty of the guarantor-
debtor but not the sub-guarantor.

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54. There is no excussion in judicial guaranty.

 TRUE

A judicial bondsman cannot demand the exhaustion of the property of the principal
debtor.(2084)

55. When the principal obligation if modified by agreement, the guarantor is released if he did not agree
to the modification even if the modified obligation will be less onerous.

 FALSE
Not one of the grounds that extinguishes guaranty

56. A remission in favour of one of five guarantors extinguishes the principal obligation but only to the
extent of 1/5.

 FALSE
A release made by the creditor in favor of one of the guarantors, without the consent of the
others, benefits all to the extent of the share of the guarantor to whom it has been granted.
(2078)

57-62 Six Examples of Legal Pledge

 Right of Possessor in Good Faith to retain the thing for necessary and useful expenses (546)
 Usufructuary or his heirs right to retain the property for taxes and extraordinary expenses (612)
 In contract for piece of work, the one who executed the work has the right to retain it by way of
pledge until he is paid. (1731)
 Agent’s right to retain in pledge the things which are the objects of the agency until the principal
effects the reimbursement and pays the indemnity in Art. 1912 and 1913.(1914)
 Depositary in deposit may retain the thing in pledge until the full payment of what may be due
him by reason of deposit. (1994)
 Hotel-Keeper has a right to retain the things brought into the hotel by the guest as a security for
credits on account of lodging, and supplies usually furnished to hotel guests. (2004)

63-69 Seven Conditions and Rules for a Valid Extra Judicial Foreclosure Sale of a Thing Pledged.

 The debt is due and demandable.


 The Pledgee is authorized to sell upon default of the Pledgor.
 Must proceed to the Notary Public for the sale of the thing pledged.
 Notice to the pledgor and the owner stating the amount due for the public sale.
 Sale must be done in a public auction.
 If at the first auction the thing is not sold, a second one with the same formalities shall be held.
 If at the second auction there is no sale either, the creditor may appropriate the thing pledged.

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70. For all intents and purposes the pledge is extinguished when the thing pledged is in the possession
of the pledgor.

 FALSE
It will only presume that the accessory obligation is remitted. (1274)

71. Rules governing possession and preservation of a thing pledged by agreement also apply to legal
pledges.

 TRUE

Pledges created by operation of law, such as those referred to in articles 546, 1731, and 1994,
are governed by the foregoing articles on the possession, care and sale of the thing as well as
on the termination of the pledge. However, after payment of the debt and expenses, the
remainder of the price of the sale shall be delivered to the obligor. (2121)

72-74 Three Obligations of Pledgee

 To take care of the thing pledged with ordinary diligence. (2099)


 To advise the pledgor of danger to the thing.
 To return the thing upon payment of debt.

75-80 Characteristics and Features of Conventional Deposit

 Real contract
 It is unilateral when gratuitous.
 Bilateral if with compensation.
 Delivery of the thing is made by the will of the depositor.
 Only movable things may be subject of a deposit.
 It may be entered into orally or in writing.

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141. Negotiorum gestio and solution indebiti may apply in one and the same situation

FALSE.Solutioindebiti arises whena person is obliged to return whatever was received by him through
error or mistake while in Negotirumgestio the reimbursement of the expenses incurred was through the
was voluntary management of the gesto.

142. Negotiorumgestio is the management of affairs or property of another without the latter’s consent
whether express or implied and for his benefit.

TRUE. Negotioriumgestio (inofficious manager) – it arises when a person voluntarily takes charge of the
management of the business or property of another without any power from the latter

Art. 2144 Whoever voluntarily takes charge ofthe agency or management of the business or property
ofanother, without any power from the latter, is obliged tocontinue the same until the termination of the
affair andits incidents, or to require the person concerned tosubstitute him, if the owner is in a position to
do so.

143. A person who receives in good faith a payment made erroneously by the payor shall only answer for
the thing and its accessories to the extent of his enrichment.

TRUE. Art 2160

“He who in good faith accepts anundue payment of a thing certain and determinate shallonly be
responsible for the impairment or loss of thesame or its accessories and accessions insofar as he
hasthereby been benefited. If he has alienated it, he shallreturn the price or assign the action to collect the
sum.”

144.-147 Requisities of solitioindebiti (4 items)

Art. 2154 If something is received when thereis no right to demand it, and it was unduly deliveredthrough
mistake, the obligation to return it arises.

- there was receipt of something

- there is no right to demand it

- it was received through error or mistake

- the obligation to return arises

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148. If the thing paid to the payee in good faith was therafter alienated, the payee may restore the price or
assign the action to collect it.

TRUE. Art. 2160 “xxx..If he has alienated it, he shall return the price or assign the action to collect the
sum.

149. The payee in bad faith must restore the capital with interest, or the thing with fruits which were
received or should have been received if the thing produces fruits plus damages.

TRUE. ARTICLE 2159.Whoever in bad faith accepts anundue payment, shall pay legal interest if a sum
of moneyis involved, or shall be liable for fruits received or whichshould have been received if the thing
produces fruits.He shall furthermore be answerable for any loss or

150. The payee in bad faith can demand reimbursement for necessary and useful expenses with right to
retention.

FALSE. The law does not provide such remedy for a payee in bad faith.

ARTICLE 2161.As regards the reimbursement forimprovements and expenses incurred by him who
undulyreceived the thing, the provisions of Title V of Book IIshall govern. (Possession)

151. If the thing paid belongs to third person , the payee who finds out the true owner must notify the
latter to claim the thing within 60 days.

FALSE. Claim is within one month.

ARTICLE 2158.When the property delivered ormoney paid belongs to a third person, the payee shall
comply with the provisions of article 1984.

ARTICLE 1984.The depositary cannot demand thatthe depositor prove his ownership of the thing
deposited.Nevertheless, should he discover that the thing hasbeen stolen and who its true owner is, he
must advise thelatter of the deposit.If the owner, in spite of such information, does not
claim it within the period of one month, the depositaryshall be relieved of all responsibility by
returning the thingdeposited to the depositor. If the depositary has reasonable grounds to believe
that the thing has not been lawfully acquired by thedepositor, the former may return the same.

152. The liability of two or more payees in solution indebitti is joint unless solidarity is stipulated.

FALSE.ARTICLE 2157.The responsibility of two or morepayees, when there has been payment of what
is not due,is solidary.

153. A stranger who gives supports has a right to claim from the one legally bound unless he gave it out
of piety and without intention of being repaid.

FALSE. It is only when without the knowledge of the person obliged.

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TRUE? If pwede with or without knowledge? Not sure

ARTICLE 2164.When, without the knowledge of theperson obliged to give support, it is given by a
stranger,the latter shall have a right to claim the same from theformer, unless it appears that he gave it out
of piety andwithout intention of being repaid.

154. When through an accident, a person was injured and is treated or helped by another while not in a
condition to give consent, he shall be liable to pay for the services rendered him even they were
rendered on pure generosity.

FALSE. It is unless the service has been made out of pure generosity.

ARTICLE 2167.When through an accident or othercause a person is injured or becomes seriously ill, and
he
is treated or helped while he is not in a condition to giveconsent to a contract, he shall be liable to pay for
the
services of the physician or other person aiding him,unless the service has been rendered out of pure
generosity.

155. Exceptionally, the crime of rape may be considered a quasi delict


FALSE. Rape is a Felony. Quasi Delict is entirely separate and distinct from the civil liability arising
from negligence under the Penal Code.

156-159 Requisites of quasi delict (4 items)


- There is act or omission, by a fault or negligence
- Caused damage or injury to another
- No pre existing contractual relation between the parties
- Such fault/negligence is the direct relation or proximate cause of the injury
Art. 2176

160. Culpa contractual and culpa aquiliana both give rise to an obligation to indemnify
TRUE. Both can be indemnify for negligence or fault.

161. As a general rule, quasi delict covers all negligent or culpable acts or omissions whether punsished
by law or not so long as they do not constitute breach of contract.
TRUE. Art. 2176

“Whoever by act or omission causesdamage to another, there being fault or negligence, isobliged to pay
for the damage done. Such fault ornegligence, if there is no pre-existing contractual relationbetween the
parties, is called a quasi-delict and isgoverned by the provisions of this Chapter.”

162. Factors affecting negligence are person, time, place and skills.

TRUE. (PNR vs CA) There is no hard and fast rule whereby such degree of care and vigilance is
calibrated; it is dependent upon the circumstances in which a person finds himself. All that the law
requires is that it is perpetually compelling upon a person to use the care and diligence expected of
sensible men under comparable circumstances.

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163. A person may be held responsible for the acts and negligence of others under his control and
supervision as in injury caused by stray animals
TRUE. If it is under his control and supervision.

Art. 2183.The possessor of an animal orwhoever may make use of the same is responsible for the
damage which it may cause, although it may escape or belost. This responsibility shall cease only in case
the
damage should come from force majeure or from the faultof the person who has suffered damage.

164-168 enumerate the persons responsible for the acts and negligence of others (5 items)
Basis Art 2180 reason doctrine of command responsibility.The responsibility treated of in this article shall
ceasewhen the persons herein mentioned prove that theyobserved all the diligence of a good father of a
family toprevent damage.
- Father/ mother for their minor children
- Guardians are liable for the minors and incapacitated persons under their authority.
- Owner/managers of establishment or enterprise for their employes.
- Employers for their employees and household helpers.
- State for their special agents
- teachers/heads of establishment of arts and trades for their pupils/students/apprentices

169. The head of families that live in buildings or parts thereof shall be liable for damages caused by
things thrown or falling from the same and no proof of negligence is required to hold them liable.

TRUE. There is strict liability if one is made liable independent of fault, negligence or intent after
establishing certain facts specified by law.

2193.The head of a family that lives in abuilding or a part thereof, is responsible for damages
caused by things thrown or falling from the same.

170. Damages recoverable for quasi delicts include damnumemergens and lucrumcessans

TRUE.Theses damages are awareded to a person as compensation or indemnfity for such pecuniary loss
suffered by him as he has duly proved.

DamnunmEmergens – loss of what a person already possesses


Lucrocessante – failure to receive as a benefit that which would have pertained to him.

171. Fault must be proximate and need to be the only cause for the damage in order to recover
indemnification.

FALSE. Fault be the proximate cause and there can be other causes.

172. Actual damages are reparation of pecuniary losses.

TRUE.

Art. 2199 Except as provided by law or bystipulation, one is entitled to an adequate compensation
only for such pecuniary loss suffered by him as he hasduly proved. Such compensation is referred to as
actualor compensatory damages.

173. Moral damages are reparation for non pecuniary losses.

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TRUE.

Art. 2217.Moral damages include physicalsuffering, mental anguish, fright, serious anxiety,
besmirched reputation, wounded feelings, moral shock,social humiliation, and similar injury. Though
incapable ofpecuniary computation, moral damages may be recoveredif they are the proximate result

174. Liquidated damages must be proved by the claimant.

FALSE.

Art. 2226.Liquidated damages are those agreedupon by the parties to a contract, to be paid in case of
breach thereof.

175. Exemplary damages are for deterring future violations.

TRUE.

Art. 2229.Exemplary or corrective damagesare imposed, by way of example or correction for the
public good, in addition to the moral, temperate,liquidated or compensatory damages.

176. Fixing the amount of indemnity may only be by law or by the courts.

FALSE. It can be fixed also by stipulation.

177-178. what is the extend of compensatory damages.

- Contracts and quasi contracts


- Delicts and quasi delicts

179.-181. Give the requirsites for the recovery of actual damages.

- there is pecuniary loss suffered

- such loss was alleged and proved with certainty

- it is not speculative

182. Equitable mitigation of damages may be decreed if loss would have resulted in any event in there
was no breach by the defendant.

TRUE.
ARTICLE 2215.In contracts, quasi-contracts, andquasi-delicts, the court may equitably mitigate
thedamages under circumstances other than the case referredto in the preceding article, as in the
followinginstances:

(1)That the plaintiff himself has contravened theterms of the contract;


(2)That the plaintiff has derived some benefit as aresult of the contract;
(3)In cases where exemplary damages are to beawarded, that the defendant acted upon theadvice of
counsel;

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(4)That the loss would have resulted in any event;
(5)That since the filing of the action, the
defendant has done his best to lessen the
plaintiff's loss or injury.

183. No interest may be recovered on liquidated claims or damages, except when the demand can be
established with reasonable certainty at the Courts discretion.

FALSE.

2213.Interest cannot be recovered uponunliquidated claims or damages, except when the demand
can be established with reasonable certainty.

184.-187. Enumerate the cases where attorney’s fees and costs of litigation may be recovered. (4 items)

General Rule: May not be recovered.

Except SWISS‐ MUD‐ ERC

1. Stipulation between parties


2. Recovery of Wages of household
helpers, laborers and skilled workers
3. Actions for Indemnity under workmen's
compensation and employer liability
laws
4. Legal Support actions
5. Separate civil action to recover civil
liability arising from crime
6. Malicious prosecution
7. Clearly Unfounded civil action or
proceeding against plaintiff
8. When Double judicial costs are awarded
9. When Exemplary damages are awarded
10. Defendant acted in gross & evident bad
faith in Refusing to satisfy plaintiff's just
& demandable claim
11. When defendant's act or omission
Compelled plaintiff to litigate with 3rd
persons or incur expenses to protect his
interest
3. INTEREST

188-192. In what cases may an award for moral damages be made?(5 items)

ARTICLE 2219.Moral damages may be recovered inthe following and analogous cases:
(1)A criminal offense resulting in physicalinjuries;
(2)Quasi-delicts causing physical injuries;

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(3)Seduction, abduction, rape, or other lasciviousacts;
(4)Adultery or concubinage;
(5)Illegal or arbitrary detention or arrest;
(6)Illegal search;
(7)Libel, slander or any other form of defamation;
(8)Malicious prosecution;
(9)Acts mentioned in article 309;
(10)Acts and actions referred to in articles 21, 26,27, 28, 29, 30, 32, 34, and 35.

The parents of the female seduced, abducted, raped,or abused, referred to in No. 3 of this article,
may also
recover moral damages.
The spouse, descendants, ascendants, and brothersand sisters may bring the action mentioned in
No. 9 of
this article, in the order named.

193-195. Characteristics of liquidation. (3 items)

Art. 2226-2228

- It is agreed upon the parties


- It may reduced iniquitous or unconscionable
- It can be determined by law if the breach is not the one contemplated

196. Liquidated damages are those damages agreed upon by the parties to a contract and may not be
equitably reduced.

FALSE.

2227 Liquidated damages, whetherintended as an indemnity or a penalty, shall be equitablyreduced if


they are iniquitous or unconscionable.

197. Exemplary damages cannot be awarded alone.

TRUE.

ARTICLE 2234.While the amount of the exemplarydamages need not be proved, the plaintiff must show
thathe is entitled to moral, temperate or compensatorydamages before the court may consider the question
ofwhether or not exemplary damages should be awarded. Incase liquidated damages have been agreed
upon, althoughno proof of loss is necessary in order that such liquidateddamages may be recovered,
nevertheless, before the courtmay consider the question of granting exemplary inaddition to the liquidated
damages, the plaintiff mustshow that hewould be entitled to moral, temperate orcompensatory damages
were it not for the stipulation forliquidated damages.

198. The preference provided in article 241 of the Civil code can only be applied if there is an insolvency
proceeding.

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TRUE.

There must be a proceeding such as an insolvency proceeding wherein the creditors can file their claims.
The right becomes significant only after the properties of the debtor have been inventoried and liquidated,
and the claims of the various creditors have been established. Prior to the proceedings the debtor has no
way of ascertaining who the creditors are, and has no liquidated property out of which he can pay them. –
Mem aid 2015

199. With reference to specific movable property, the claim of employees of the owner now enjoys
preference over taxes.

FALSE.

ARTICLE 2241.With reference to specific movableproperty of the debtor, the following claims or liens
shall
be preferred:
(1)Duties, taxes and fees due thereon to the Stateor any subdivision thereof;
(2)Claims arising from misappropriation, breachof trust, or malfeasance by public officialscommitted in
the performance of theirduties, on the movables, money or securitiesobtained by them;
(3)Claims for the unpaid price of movables sold,on said movables, so long as they are in thepossession of
the debtor, up to the value ofthe same; and if the movable has been resoldby the debtor and the price is
still unpaid, thelien may be enforced on the price; this rightis not lost by the immobilization of the thingby
destination, provided it has not lost itsform, substance and identity; neither is theright lost by the sale of
the thing togetherwith other property for a lump sum, whenthe price thereof can be
determinedproportionally;
(4)Credits guaranteed with a pledge so long as thethings pledged are in the hands of thecreditor, or those
guaranteed by a chattelmortgage, upon the things pledged ormortgaged, up to the value thereof;
(5)Credits for the making, repair, safekeeping orpreservation of personal property, on themovable thus
made, repaired, kept orpossessed;
(6)Claims for laborers' wages, on the goodsmanufactured or the work done;
(7)For expenses of salvage, upon the goodssalvaged;
(8)Credits between the landlord and the tenant,arising from the contract of tenancy onshares, on the share
of each in the fruits orharvest;
(9)Credits for transportation, upon the goodscarried, for the price of the contract andincidental expenses,
until their delivery andfor thirty days thereafter;
(10)Credits for lodging and supplies usuallyfurnished to travellers by hotel keepers, onthe movables
belonging to the guest as longas such movables are in the hotel, but not for money loaned to the guests;
(11)Credits for seeds and expenses for cultivationand harvest advanced to the debtor, uponthe fruits
harvested;
(12)Credits for rent for one year, upon thepersonal property of the lessee existing onthe immovable leased
and on the fruits ofthe same, but not on money or instrumentsof credit;
(13)Claims in favor of the depositor if thedepositary has wrongfully sold the thingdeposited, upon the
price of the sale.In the foregoing cases, if the movables to which thelien or preference attaches have been
wrongfully taken,the creditor may demand them from any possessor,within thirty days from the unlawful
seizure.

200. With respect to specific immovable properties only taxes enjoy absolute preference and the other
preferred credits must be paid

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TRUE.

Art. 2243 The claims or credits enumerated inthe two preceding articles shall be considered asmortgages
or pledges of real or personal property, or lienswithin the purview of legal provisions
governinginsolvency. Taxes mentioned in No. 1, article 2241, andNo. 1, article 2242, shall first be
satisfied.

Article 2242. With reference to specific immovable property and real rights of the debtor, the following
claims, mortgages and liens shall be preferred, and shall constitute an encumbrance on the immovable or
real right:
(1)Taxes due upon the land or building;
(2)For the unpaid price of real property sold, upon the immovable sold;
(3)Claims of laborers, masons, mechanics and other workmen, as well as of architects, engineers and
contractors, engaged in the construction, reconstruction or repair of buildings, canals or other works, upon
said buildings, canals or other works;
(4)Claims of furnishers of materials used in the construction, reconstruction, or repair of buildings, canals
or other works, upon said buildings, canals or other works;
(5)Mortgage credits recorded in the Registry of Property, upon the real estate mortgaged;
(6)Expenses for the preservation or improvement of real property when the law authorizes
reimbursement, upon the immovable preserved or improved;
(7)Credits annotated in the Registry of Property, in virtue of a judicial order, by attachments or
executions, upon the property affected, and only as to later credits;
(8)Claims of co-heirs for warranty in the partition of an immovable among them, upon the real property
thus divided;
(9)Claims of donors or real property for pecuniary charges or other conditions imposed upon the donee,
upon the immovable donated;
(10)Credits of insurers, upon the property insured, for the insurance premium for two years

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