I. Obligations — Arts.

1156-1304
A. In General
1. Definition — Art. 1156
2. 2. Kinds of Obligations as to basis and enforceability — Art. 1423-1430, RA 6809
3. Prescription of Actions — 1139-1155

Ansay v NDC, 107 Phil 997

DBP v Confesor, 161 SCRA 307 (1988)
Heirs of Roldan v Heirs of Roldan and Heirs of Magtulis, GR No 202578, 27 Sept 2017

4. Elements of Obligations

B. Sources of Civil Obligations — Art. 1157

Sagrada Orden v NACOCO, 91 Phil 503

The Metrobank v Rosales and Yo Yuk To, GR No 183204, Jan. 13, 2014

1. Law — Art. 1158

2. Contracts — Arts. 1159, 1305
3. Quasi-contracts — Arts. 1160, 2142-2175

a. Negotiorum gestio
b. Solutio indebiti
c. Other Quasi-contracts

4. Acts or omissions punished by law — Arts. 1167, 2177, Arts. 100 & 104 RPC
5. Quasi-delicts — Arts. 1162, 2176

Saludaga v FEU, GR No 179337, April 30, 2008

People’s Car v Commando Security, 51 SCRA 40
Cruz v Tuazon & Co, 76 SCRA 543
Adille v CA, 157 SCRA 455
Andres v Mantrust, 177 SCRA 618 (1989)
Puyat & Sons v Manila, 7 SCRA 970
CBK Power Co Ltd v CIR, GR Nos 198729-30, January 15, 2014
Cangco v MRR, 38 Phil 768
Gutierrez v Gutierrez, 56 Phil 177

C. Compliance with Obligations — Arts. 19, 1163-166, 1244, 1246, 1460, 442, 440

D. Kinds of Civil Obligations

1. As to Perfection & Extinguishment

a. Pure — Arts. 1179, 1197

b. Condititonal — Arts. 1181-1190
c. With a term or period — Arts. 1180, 1193-1198

Pay v Palanca, 57 SCRA 618

Smith Bell v Sotello Matti, 44 Phil 874
Chavez v Gonzales, 32 SCRA 547
Encarnacion v Baldomar, 77 Phil 470
Eleizegui v Lawn Tennis Club, 2 Phil 309
Philbanking v Lui She, 21 SCRA 53
Lim v People, 133 SCRA 333
Araneta, Inc v Phil Sugar Estates, 20 SCRA 330
Millare v Hernando, 151 SCRA 484

2. As to Plurality of Prestation

a. Conjunctive
b. Alternative — Arts. 1199-1205
c. Facultative — Art. 1206

Arco Pulp and Paper Co. Inc and Santos v Lim, GR No 206806, June 25, 2014

3. As to rights & obligations of multiple parties — Arts. 1207-1222

a. Joint
b. Solidary — Arts. 927, 1824, 1911, 1915, 1945, 2157, 2194, 2146; Arts. 94, 121 FC; Art
90 RPC
c. Disjunctive

Ronquillo v CA, 132 SCRA 274

Malayan Insurance v CA, 165 SCRA 536
PNB v Independent Planters, 122 SCRA 113
Calang and Philtranco v People, GR No 190696, August 3, 2010
Ruks Konsult and Construction v Adworld Sign and Advertising Corp and Transworld Media Ads, GR
No 204866, January 21, 2015
TMBI v Feb Mitsui and Manalstas, GR No 194121, July 11, 2016
Sanico and Castro v Colipano, GR NO 209969, September 27, 2017

4. As to performance of prestation — Arts. 1221-1225, 1209-1210

a. Divisible
b. Indivisible
c. Joint indivisible
d. Solidary indivisible

Sps. Lam v KODAK PHILIPPINES, GR No 167615, January 11, 2016

5. As to the presence of an accessory undertaking in case of breach

a. With a Penal Clause — Arts. 1226-1230

Distinguish from Liquidated Damages

Bachrach v Espiritu, 52 Phil 346

Robes-Francisco v CFI, 86 SCRA 59
Pamintuan v CA, 94 SCRA 556
 Castillo v Security Bank, et al., GR No 196118, July 30, 2014
Sps. Poon v PRIME SAVINGS BANK, GR No 183794, June 13, 2016

E. Breach of Obligations — Art. 1170

Honrado v GMA Network Films, Inc., GR No 204702, January 14, 2015

1. Manner of breach
a. Fraud — Arts. 1171, 1338, 1344
b. Negligence — Arts. 1171-1173
c. Delay — Arts. 1169, 1165, 1786, 1788, 1896, 1942
d. Any other manner of contravention

2. Excuses for non-performance

a. Fortuitous Event — Arts. 1174, 552, 1165, 2147, 2159
b. Act of creditor

Cangco v MRR, 38 Phil 768

Telefast v Castro, 158 SCRA 445
Meralco v Ramoy, GR No 158911, March 4, 2008
Mindanao Terminal v Phoenix Assurance, GR No 162467, May 8, 2009
Jimenez v City of Manila, 150 SCRA 510
Rivera v Spouses Chua, GR No 184458, January 14, 2015
Solar Harvest, Inc v Davao Corrugated Carton Corp., GR NO 176868, July 26, 2010
Agcaoili v GSIS, 165 SCRA 1
Arrieta v Naric, 10 SCRA 79
Sicam v Jorge, GR No 159617, August 8, 2007 NPC v CA, 161 SCRA 334
Fil-Estate v Sps Ronquillo, GR No 185798, January 13, 2014
TMBI v Feb Mitsui and Manalastas, GR No 194121, July 11, 2016

F. Remedies for Breach of Obligations — Arts. 1165-1168, 1170, 1177-1178, 1191-1192, 2236, 302,
1708; Arts. 153, 155 FC; Rule 39 Sec. 13

1. Extra-judicial remedies
a. Expressly granted by law — Arts. 1786, 1788, 1526
b. Stipulated

2. Judicial remedies
a. Principal remedies — Arts. 1191, 1170
b. Subsidiary remedies — Arts. 1380, 1177
c. Ancillary remedies — Rules of Court

Universal Food Corp v CA, 33 SCRA 1

Magdalena Estate v Myrick, 71 Phil 344
UP v de los Angeles, 35 SCRA 102
Zulueta v Mariano, 111 SCRA 206
Palay, Inc v Clave, 124 SCRA 638
Angeles v Calasanz, 135 SCRA 323
Boysaw v Interphil Promotions, 148 SCRA 635
 Pilipinas Banc v IAC, 151 SCRA 546
Unlad Resources Development v Dragon, GR No 149338, July 28, 2008
Swire Realty Dev’t Corp v Jayne Yu, GR No 207133, March 9, 2015
Olivarez Realty v Castillo, GR No 196251, July 9, 2014
NCLPI v Lica and PROTON, GR No 176986, January 13, 2016

G. Modes of Extinguishment of Obligations — Art. 1231

Other modes:

Saura v DBP, 44 SCRA 445

1. Payment or performance — Arts. 1232- 1244, 1246- 1251, 1302; RA 529, RA 8183; PD 72,
Secs 31-32

NPC v Ibrahim, et al, GR NO 175863, February 18, 2015

Land Bank of the Philipines v Alfredo Ong, GR No 190755, November 24, 2010
JM Tuason v Javier, 31 SCRA 829
Legarda v Saldaña, 55 SCRA 324
Azcona v Jamandre, 151 SCRA 317
Arañas v Tutaan, 127 SCRA 828
Kalalo v Luz, 34 SCRA 337
Ponce v CA, 90 SCRA 533
New Pacific Timber v Señeris, 101 SCRA 686
Roman Catholic Bishop of Malolos, Inc v IAC, 191 SCRA 411, November 16, 1990
Tibajia, Jr v CA, 223 SCRA 163, January 4, 1993
Bognot v RRI Lending Corp, GR No 180144, September 24, 2014
Velasco v Meralco, 42 SCRA 556
Commissioner v Burgos, 96 SCRA 831
Filipino Pipe & Foundry Corp v NAWASA, 161 SCRA 32
Del Rosario v Shell, 164 SCRA 556

2. Loss of the thing due or Impossibility of Performance — Arts. 1262-1269, 1189, 1174, 1165,
1268, 1942, 1979, 2147, 2159

People v Franklin, 39 SCRA 363

Laguna v Manabat, 58 SCRA 650
Occeña v Jabson, 73 SCRA 637

3. Condonation or remission of the debt — Arts. 1270-1274, 748, 749

4. Confusion or Merger of Rights — Arts. 1275-1277, 1215, 1217

5. Compensation — Arts. 1278-1290, 1243, 1215

Kinds of Compensation
a. Legal
b. Conventional
c. Facultative
d. Judicial
 Gan Tion v CA, 28 SCRA 235
PNB v Ong Acero, 148 SCRA 166
Francia v IAC, 162 SCRA 753
Republic v de los Angeles, 98 SCRA 103
Solinap v del Rosario, 123 SCRA 640
Sycip v CA, 134 SCRA 317
Cia Maritima v CA, 135 SCRA 593
Int’l Corporate Bank v IAC, 163 SCRA 296
Mindanao Portland Cement v CA, 120 SCRA 296
Bank of the Philippines v CA, GR No 136202, January 25, 2007
Union Bank v DBP, GR No 191555, January 20, 2014

6. Novation — Arts. 1291-1304, 1215

Kinds of Novation
a. As to its nature
i. Subjective or personal
ii. Objective or real

b. b. As to its form
i. Express
ii. Implied

Fua v Yap, 74 Phil 287

Japan Airlines v Simangan, GR No 170141, April 2008
Anamer Salazar v JY Borther Marketing Corp, GR No 171998, October 20, 2010
Metropolitan Bank v Rural Bank of Gerona, Inc, GR No 159097, July 5, 2010
Arco Pulp and Paper Co, Inc and Santos v Lim, GR No 206806, June 25, 2014
Millar v CA, 38 SCRA 642
Sandico v Piguing, 42 SCRA 322
NPC v Dayrit, 125 SCRA 849
Integrated Construction v Relova, 146 SCRA 360
Cochingyan v R&B Surety, 151 SCRA 339
Balila v IAC, 155 SCRA 262
People’s Bank v Syvel’s, 164 SCRA 247
Rodriguez v Reyes, 37 SCRA 195
Odiamar v Odiamar Valencia, GR NO 213582, June 28, 2017

II. Contracts — Arts. 1305-1422

A. In General

1. Definition — Arts. 1305

Auto-contract — Arts. 1491, 1646, 1890

2. Elements of Contracts
a. Essential
b. Natural
c. Accidental
 Batchelder v CB, 44 SCRA 45

B. Fundamental Characteristics/Principles of Contracts

1. Consensuality of Contracts — Arts. 1305, 1317

Contract of Adhesion

Republic v PLDT, 26 SCRA 620

Corpus v CA, 98 SCRA 424
Ejercito, et al v Oriental Assurance Corp, GR No 192099, July 8, 2015

2. Autonomy of Contracts — Arts. 1306, 1799, 2088, 2130

Daisy Tiu v Platinum Plans, GR NO 163512, February 28, 2017

Cui v Arellano University, 2 SCRA 205
Saura v Sindico, 107 Phil 336
Leal v IAC, 155 SCRA 394

3. Mutuality of Contracts — Arts. 1308-1310, 1182

Acceleration Clause
Escalation Clause

Banco Filipino Savings v Navarro, 152 SCRA 346 (1987)

Florendo v CA, 265 SCRA 678 (1996)

4. Obligatory Force of Contracts — Arts. 1159, 1315-1316, 749

New World v AMA CLC, GR No 187930, February 23, 2015

5. Relativity of Contracts — Arts. 1311-1314, 1177-1178, 1381(3)

Privity of Contracts

Saludo, Jr v Security Bank Corp, GR No 184041, October 13, 2010

Metropolitan Bank and Trust Company v Reynaldo and Adrandea, GR No 164538, August 9, 2010
Prudential Bank v Abasolo, GR No 186738, September 27, 2010
Asian Cathay Finance and Leasing Corporation v Sps Cesario Gravador GR No 186550, July 5, 2010
Velasco v CA, 95 SCRA 616
Kauffman v PNB, 42 Phil 182
Bonifacio Bros v Mora, 20 SCRA 261
Bank of America v IAC, 145 SCRA 419
Marimperio v CA, 156 SCRA 368
Daywalt v Corp de PP Agustinos, 39 Phil 587
Gilchrist v Cuddy, 29 Phil 542 (1915)
Estate of KH Hemady v Luzon Surety, 100 Phil 389 (1956)
So Ping Bun v CA, 314 SCRA 751 (1999)
Sanico and Castro v Colipano, GR No 209969, September 27, 2017
C. Classification of Contracts

1. According to degree of dependence

a. Preparatory — Arts. 1479, 1767, 1868
b. Principal — Arts. 1458, 1638, 1642, 1933, 1962
c. Accessory — Arts. 2047, 2085

2. According to perfection
a. Consensual — Arts. 1315, 1475
b. Real — Arts. 1316, 1934
c. Formal — Arts. 1356

3. According to solemnity or form — Arts. 1356

a. Any form
b. Special form

4. According to purpose
a. Transfer of ownership — Arts. 725, 1458, 1638
b. Conveyance of use — Arts. 562, 1642, 1933
c. Rendition of service — Arts. 1642, 1868

5. According to nature of obligation produced

a. Bilateral — Arts. 1642, 1458
b. Unilateral — Arts. 2047, 2093

6. According to cause — Arts. 1350

a. Onerous — Arts. 1458, 1638, 1642
b. Gratuitous or lucrative — Arts. 725, 1933
c. Remuneratory

7. According to risk
a. Commutative
b. Aleatory — Arts. 2010

8. According to name
a. Nominate
b. Innominate — Arts. 1307

9. According to subject matter

a. Thing
b. Right
c. Service

D. Stages of Contracts

1. Negotiation
Contract of Option — Arts. 1324, 1479, 1482

Sanchez v Rigos, 45 SCRA 368

 2. Perfection

Tong Brothers Co. v IAC, 156 SCRA 726

Velasco v CA, 51 SCRA 439

3. Performance
4. Consummation

E. Essential Elements of Contracts — Arts. 1318

1. Consent of the contracting parties — Arts. 1319-1346, 37-42, 739, 1476(4), 1490-1491,
1533(5), 1646, 1782, 1409(7)
Arts. 87, 124, 234 FC; RA 6809; Art XII, Secs 7 & 8, 1987 Constitution
Cognition Theory
Manifestation Theory

2. Object certain which is the subject matter of the contract — Arts. 1347-1349, 1311, 1178
3. Cause of the obligation — Arts. 1350-1355
4. Delivery
5. Due observance of prescribed formalities

Clemente v CA, Jalandoon, GR 175483, October 14, 2015

Pentacapital Investment Corp vs Mahinay, GR No 171736, July 5, 2010
Ong Yiu v CA, 91 SCRA 223
Weldon v CA, 154 SCRA 618
C&C Commercial Corp v Menor, 120 SCRA 112
Tang v CA, 90 SCRA 236
Cariño v CA, 152 SCRA 529
Lagunzad v Gonzales, 92 SCRA 476
Law v Olympic Sawmill, 129 SCRA 439

F. Form of Contracts — Arts. 1356-1358

1. Any form — oral
2. Special form

a. Validity — Arts. 748, 749, 1744, 1773, 1874, 1956, 2134; Act 1147, Sec 22
b. Enforceability — Arts. 1403, 1878
c. Greater efficacy or convenience — Arts. 1358

Lao Sok v Sabaysabay, 138 SCRA 134

Gallardo v IAC, 155 SCRA 248
Paredes v Espino, 22 SCRA 1000
Sps Aguinaldo v Torres, GR No 225808, September 11, 2017

G. Reformation of Contracts — Arts. 1359-1369

H. Interpretation of Contracts — Arts. 1370-1379

Lim v CA, 99 SCRA 668
Republic v Castellvi, 58 SCRA 336
 Eastern Shipping v Margarina-Verkaufs-Union, 93 SCRA 256

I. Kinds of Contracts as to Validity

1. Valid and binding
2. Valid but defective
a. Rescissible Contracts – Arts. 1380-1389, 1191
b. Voidable Contracts – Arts. 1390-1402, 1327-1328, 1330
c. Unenforceable Contracts – Arts. 1403-1408, 1317, 1878
3. Void or Inexistent — Arts. 1409-1422, 1318, 1353, 1378, 1491, 1898

Recissible Contracts
Cabaliw v Sadorra, 64 SCRA 310
Hongkong & Shanghai Bank v Pauli, 161 SCRA 634

Voidable Contracts
Felipe v Heirs of Aldon, 120 SCRA 628
House Int’l v IAC, 151 SCRA 703
Poole-Blunden v Union Bank, GR No 205838, November 29, 2017

Unenforceable Contracts
Ortega v Leonardo, 103 Phil 870
Carbonel v Poncio, 103 Phil 655
Babao v Perez, 102 Phil 756
Cabague v Auxilio, 92 Phil 294
Yuviencio v Dacuycuy, 104 SCRA 668
Clarin v Rulona, 127 SCRA 512
Bisaya Land Transproration v Sanchez, 153 SCRA 532

Void or Inexistent
Clemente v CA, Jalandoon, GR No 175483, October 14, 2015
Hernandez v CA, 160 SCRA 821
Rubias v Batiller, 51 SCRA 120
Javier v vda De Cruz, 80 SCRA 343
Menil v CA, 84 SCRA 413
Director of Lands v Alba, 88 SCRA 513
Tongoy v CA, 123 SCRA 99
Lita Enterprises v IAC, 129 SCRA 79
Arsenal v IAC, 143 SCRA 40
Manotok Realty v IAC, 149 SCRA 372
Portugal v IAC, 159 SCRA 178
Yanas v Acaylar, 136 SCRA 52
Barsobia v Cuenco, 113 SCRA 547
Godinez v Fong, 120 SCRA 223
Yap v Grageda, 121 SCRA 244
Pineda v de la Rama, 121 SCRA 671
Liguez v CA, 102 Phil 577
Avila v CA, 145 SCRA 541
Teja Marketing v IAC, 148 SCRA 347
Briones v Cammayo, 41 SCRA 404