Course Outline in Obligation & Contracts

(Prof. Elmer T. Rabuya)

PART 1: OBLIGATIONS

Chapter 1: Concept and Elements

Art. 1156, NCC
Justice J.B.L. Reyes, Observations on the New Civil Code, XVI L.J., 47
Makati Stock Exchange, Inc. v. Campos, 585 SCRA 120 (2009)
Memorandum of the Code Commission, March 8, 1951
Ang Yu Asuncion v. CA, 238 SCRA 602 (1994)

Chapter 2: Sources of Obligations

Art. 1157, NCC
Makati Stock Exchange, Inc. v. Campos, 585 SCRA 120 (2009)
A. Law
Art. 1158, NCC
B. Contract
Art. 1159, NCC
C. Quasi-contract
Art. 1160, NCC; Arts. 2142-2175, NCC
Traders Royal Bank Employees Union-Independent v. NLRC, 269 SCRA 733 (1997)
PNB v. CA and B.P. Mata and Co., Inc., 217 SCRA 347 (1993)
(aa) Negotiorum Gestio
Sison v. Balgos, 34 Phil. 885 (1916)
(bb) Solutio Indebiti
Concept: Genova v. De Castro, G.R. No.132076, July 22, 2003, citing Andres v. Manufacturers Hanover & Trust
Corporation, G.R. No. 82670, Sep. 15, 1989, 177 SCRA 618; and Ramie Textiles, Inc. v. Mathay, Sr., G.R. No. L-
32364, April 30, 1979
Requisites: Siga-an v. Villanueva, 576 SCRA 696 (2009); BPI v. Sarmiento, 484 SCRA 261 (2006); Moreno-
Lentfer v. Wolff, 441 SCRA 584, (2004); Genova v. De Castro,supra; National Commercial Bank of Saudi Arabia
v. CA, G.R. No. 124267, Jan. 31, 2003; Power Commercial and Industrial Corp. v. CA, 274 SCRA 597 (1997); PNB
v. CA, 217 SCRA 347 (1993)
Includes Mistake of Law: CIR v. Fortune Tobacco Corp., G.R. Nos. 167274-75, July 21, 2008
Distinguished From In Rem Verso: Frenzel v. Catito, G.R. No. 143958, July 11, 2003; Land Bank of the Philippines
v. Ong, G.R. No. 190755, Nov. 24, 2010, 636 SCRA 266 (2010); UP v. Philab Industries, Inc., 482 Phil. 693 (2004);
Shinryo (Philippines) Company, Inc. v. RRN Incorporated, G.R. No. 172525, Oct. 20, 2010.
D. Delict
Art. 1161, NCC; Arts. 100-103, RPC
Basis of Civil Liability in Crime: Occena v. Icamina, 181 SCRA 328 (1990); Banal v. Tadeo, Jr., 156 SCRA 325
(1987).
Effect of Acquittal of Accused: Art. 29, NCC; Manantan v. CA, 350 SCRA 387 (2001); Manliclic v. Calaunan, 512
SCRA 642 (2007); Nuguid v. Nicdao, 502 SCRA 93 (2006); Padilla v. CA, 129 SCRA 558 (1984).
Rule of Implied Institution: Sec. 1, Rule 111, 2000 Revised Rules of Criminal Procedure; Casupanan v. Laroya,
G.R. No. 145391, Aug. 26, 2002
Effect of Death During Appeal: People v. Bayotas, 236 SCRA 239 (1994); reiterated in other cases such as Villegas
v. CA, G.R. No. 82562, April 11, 1997; People v. Abungan, G.R. No. 136843, Sep. 28, 2000; Go v. Looyuko, 537
SCRA 445 (2007); People v. Bunay, 630 SCRA 445 (2010); People v. Ayochok, 629 SCRA 324 (2010).
E. Quasi-delict
Art. 1162, NCC; Arts. 2176-2177 and 2180, NCC
Requisites: Dy Teban Trading, Inc. v. Ching, 543 SCRA 560; BPI v. Lifetime Marketing Corp., 555 SCRA 373;
Corinthian Gardens Association, Inc. v. Tanjangco, 556 SCRA 154; Ngo Sin Sing v. Li Seng Giap & Sons, Inc., 572
SCRA 625
Scope of Quasi-Delict: Barredo v. Garcia and Almario, 73 Phil. 60 (1942); Diana v. Batangas Transportation Co.,
93 Phil. 392; Elcano v. Hill, 77 SCRA 89 (1977); Dulay v. CA, 313 Phil. 8, 20 (1995); Safeguard Security Agency,
Inc. v. Tangco, 511 SCRA 67 (2006).
Prohibition Against Double Recover: Art. 2177, NCC
Effect of Pre-Existing Contractual Relations: American Express International, Inc. v. Cordero, 473 SCRA 42
(2005); Pilipinas Shell Petroleum Corp. v. John Bordman Ltd. Of Iloilo, Inc., 473 SCRA 151 (2005); Air France v.
Carrascoso, 18 SCRA 155 (1966); reiterated in Singson v. BPI, 23 SCRA 1117 (1968); also in Light Rail Transit
Authority v. Navidad, 397 SCRA 75 (2003); YHT Realty Corp. v. CA, 451 SCRA 638 (2005); and Schmitz
Transport & Brokerage Corp. v. Transport Venture, Inc., 456 SCRA 557 (2005).
Distinction Between Culpa Aquiliana and Culpa Contractual: Calalas v. CA, 332 SCRA 356 (2000); Cangco v.
Manila Railroad Co., G.R. No. L-12191, Oct. 14, 1918; FGU Insurance Corp. v. G.P. Sarmiento Trucking Corp.,
G.R. 141910, Aug. 6, 2002.