Reviewer on ObliCon

OBLIGATION –juridicalnecessitytogive,todoornottodo 4GROUNDS;debtorliablefordamages
1.Default/mora
4ELEMENTSOFOBLIGATION 2.Fraud/dolo
1. ACTIVESUBJECT(creditor/obligee) –whoseobligationis 3.Negligence/culpa
constituted 4.Contrarytotermsofobligation
2. PASSIVESUBJECT(debtor/obligor) –hasdutytogive,todo 1.DEFAULT/MORA –delay
ornottodo      3kinds
3. OBJECT/PRESTATION –subjectmatter      a. Morasolvendi –debtor’sdelaytogive(realob.),todo
4. JURIDICAL/LEGALTIE(vinculum/efficientcause) –reason (personalob.)
     b. Moraaccipiende –creditor’sdelaytoaccept
CIVILOBLIGATION NATURALOBLIGATION      c. CompensatioMorae –delayofbothinreciprocal
derivedfrom positivelaw derivedfrom equity&justice obligation
enforceablebycourtaction notenforceablebycourt CONCEPTOFDELAY
action GeneralRule: Nodemand,Nodelay
Exceptions:
5SOURCESOFOBLIGATION 1.Lawstates
1. LAW 2.Obligationstates
2. CONTRACTS 3.Timeistheessence
3. QUASI-CONTRACTS –arisefrom lawful,voluntaryacts;no 4.Demandbeuselessifdelay
oneshallbeunjustlyenriched... 5.Debtorguiltyofdelay
     2Kinds EFFECTSOFDELAY
     a. Solutioindebiti –somethingreceived(deliveredona 1.Damages
mistake),norighttodemandit 2.Whentodeliverdeterminatething,STILLLIABLEin
     b. Negotiorum gestio –voluntarymgtofproperty/affairsof fortuitousevent.
anotherw/ohisknowledge/consent 2.FRAUD/DOLO –conscious,deliberate,intentionalevasionof
4. QUASI-DELICT/TORTS/CULPAAQUILIANA –arisefrom fulfillment
damage; fault/negligence      2Kinds
5. CRIMES/ACTS/OMISSIONSpunishedbylaw –arise      a. Dolocausante/Causalfraud –fraudinobtainingconsent;
from civilliability thatisaconsequenceofacriminaloffense consentisdefective,contractisvoidable.Remedy:annulment
     b. Doloincidente/Incidentalfraud –fraudw/cvitiates
DILIGENCEOFAGOODFATHEROFAFAMILY consent.Remedy:damages
-careneedtobeexercisedbyadebtorto 3.NEGLIGENCE/CULPA –voluntaryact/omission;nobadfaith
deliver/give determinatething intended
Exception: Whenlaw/stipulationofpartiesrequiresadiffernt      3Kinds
standardofcare(slight/extraordinarydiligence).      a. Culpaaquiliana/Civilnegligence –quasi-delict/torts
     b. Culpacontractual/Contractualnegligence –breach
Whencreditorisentitledtothefruits      c. Culpacriminal/Criminalnegligence –crime/delict
Rule: Thecreditorhas personalright (righttoaskfordelivery) 4.Contrarytothetermsofobligation
from thetimetheobligationtodeliverarises. 2RULESOFPRINCIPAL&INSTALLMENT
ButNO realright (rightenforceableagainstthewholeworld) 1.Receiptofprincipalw/omentionofinterest,presumed
untilitisdelivered. interestispaidalso.
2.Receiptoflatterinstallmentw/omentionofpriorinstallment,
3KINDSOFFRUITS presumedpriorinstallmentispaidalso.
1. NATURAL –w/ohumanintervention 4SUCCESSIVERIGHTSOFCREDITORtosatisfyclaim against
2. INDUSTRIAL –w/humanintervention DEBTOR
3. CIVIL –derivedbyvirtueofjuridicalrelation 1.Exactpayment
2.Attachdebtor’sproperties
Creditor’srightsifdebtorfailstocomplyw/theobligation 3. Accionsubrogatoria –exerciserights&actionsexcept
1. Determinate inherentinperson
a.Performance 4. Accionpauliana –cancelacts/contractsbydebtorto
b.Damages defraudcreditor
2. Generic TRANSMISSIBILITYOFRIGHTS
a.Performance GeneralRule: ALLRIGHTSaretransmissible.
b.Damages Exceptions:
c.Obligationbecompliedatdebtor’sexpense 1.Lawstates
2.Contractstates
Creditor’srightsifdebtordoesincontravention 3.Obligationispurelypersonal
1.Damages 10KindsofObligation
2.AskitbeUNDONEatdebtor’sexpense 1.Pure
2.Conditional
FORTUITOUSEVENT –cannotbeforeseen,ifforeseen, 3.Alternative
inevitable 4.Facultative
GeneralRule: Nopersonliabletofortuitousevent. 5.Joint
Exceptions: 6.Solidary
1.Lawstates 7.Divisible
2.Stipulation/contractstates 8.Indivisible
3.Assumptionofrisk 9.Obligationw/aperiod
4.Delay 10.Obligationw/apenalclause
5.Debtorpromisesdeliverto2/morepersonswhodonothave 1.PUREOBLIGATION
sameinterest(badfaith) -w/ocondition,demandableatonce(purehasresolutory
condition/period)
EFFECTSOFFORTUITOUSEVENTtothingtobedelivered 2.CONDITIONALOBLIGATION
-extinguishtheobligationifdeterminate;genericdoesnot -thereisconditioninperformance;future&uncertain
extinguishtheobligation

3MISCELLANEOUSRULESONPERFORMANCEOFOBLIGA-
TION
1.Whentodeliver determinate, accessions (additions/
improvements)and accessories (joined/includedwiththe
principal)areINCLUDEDevennotmentioned.
2.Ifdebtorfails todo,itshallbeDONEATHISEXPENSE,same
withdoingthecontravention;poorlydonebeundone.
3.Inobligation nottodo,andobligordoeswhatisforbidden,
shallbeUNDONEATHISEXPENSE.

     2Kinds futureonly future/pastbutunknown
     a. Suspensivecondition –happeningofconditiongivesRISE
toobligation (*influenceuponobligation) (*)ontheveryexistenceof
     b. Resolutorycondition –happeningofcondition onlyuponitsdemandability obligationitself
EXTINGUISHESobligation
FORWHOSEBENEFITISTHEPERIOD?
6MISCELLANEOUSRULESONCONDITIONALOBLIGATION GeneralRule: Boththedebtor&creditor.
1.Impossibleconditions,contrarytolaw,shallANNUL Therefore,NEITHERofthem candemandperformanceof
obligation. obligation.
2.Theconditionnottodoanimpossiblethingisconsidered Exception: Iftheterm ofobligationhastofavoroneofthem.
notagreedupon.
3.Theconditionthathappensindeterminatetime, 5INSTANCESWHENDEBTORLOSESRIGHTTOUSE“PERIOD”
EXTINGUISHESobligation. 1.Debtorisinsolvent.
4.TheconditionthathappensinINDETERMINATEtime, 2.Debtorattemptstoabscond.
obligationonlyeffectiveatarrival. 3.Impairmentofguarantees/securities.
5.TheconditionisfulfilledifDEBTORpreventsfulfillment. 4.Failuretofurnishguarantees/securitiespromised.
6.Theeffectofconditionalobligation,oncefulfilled: 5.Violationofundertaking.
-togive:retroacttothedayofconstitutionofobligation
-hasreciprocalprestations:fruits&interestsbemutually 4.ALTERNATIVEOBLIGATION
compensated -w/2ormoreprestations,only1isdue.
-hasunilateralobligation:debtorshallgivefruits&interests
5.FACULTATIVEOBLIGATION
RULESincaseofLoss,Improvement,orDeteriorationofthing -w/ONLY1prestationbutcanbesubstituted.
duringthependencyofcondition
1.LOST ALTERNATIVEprestationsLOSTw/debtor’sfault
a. w/debtor’sfault –damages Creditorentitledtodamagesbutneedsffrequisites:
b. w/odebtor’sfault –extinguishesobligation 1.Debtorcanchoose.
2.Allprestationslost/becomeimpossibleduetodebtor’sfault.

2.DETERIORATION ALTERNATIVEOBLIGATION FACULTATIVEOBLIGATION
a. w/debtor’sfault  -(1)cancelobligation&damages;or(2) severalprestationsdue, oneprestationdue,butcan
fulfillobligationw/damages givingoneissufficient besubtituted
b. w/odebtor’sfault –creditorsufferimpairment righttochoose(debtor) righttochooseDEBTOR
unlessgrantedtocreditor ONLY
3.IMPROVEMENT If1oftheprestationis nullityofprincipalcarriesw/
a. Bynature/time –benefittocreditor illegal,othersmaybevalid, itnullityofaccessory/
b. atexpenseofdebtor –debtornorightthanthatgrantedto obligationremains substitute
usufructuary(debtornorighttocompensateamountfor loss/impossibilityofALL loss/impossibilityofpresta-
improvement) prestationsdue,w/o tiondue,w/odebtor’sfault,
debtor’sfault,extinguishes extinguishesobligation
EFFECTSOFFULFILLMENTOFSUSPENSIVECONDITION obligation
GeneralRule: Theobligationbecomeseffectiveretroactivelyto
thedayobligationwasconstituted. (3)SUMMARYOFRULES,OBLIGATIONS,&RIGHTSOF
Exceptions: DEBTORIN ALTERNATIVEOBLIGATION
1. Inreciprocalobligation,fruits&interestsduringpendencyof 1.If1ofprestationslostthrough fortuitousevent,shallstillbe
conditionshallcompensateeachother. perform bychoosing(creditor)from theremainder.
2. Inunilateralobligation,debtorgetsfruits&interestsunless 2.If1ofprestationslostthrough debtor’sfault,creditormay
thereisacontraryintent. claim anyofremaindersw/damages.
3.IfALLprestationslostthrough debtor’sfault,creditor
3EFFECTSOFFULFILLMENTOFRESOLUTORYCONDITION choosepricew/damages.
1.Extinguishobligation.
2.Bothpartiesrestorewhattheyreceivedplusfruits& RULESonLOSS/DETERIORATIONofthethingintendedas
interests. SUBSTITUTEinFACULTATIVEOBLIGATION
3.TheruleonL,D,orIwillapplytopersonwhohastoreturn 1.Ifthereisaloss/deteriorationofthingintendedassubstitute,
thething. debtorisNOTliableifNOTHISFAULT.
Whenoneofdebtorsinreciprocalobligationdoesnotcomply Butifsubstitutionisalreadymade,debtorisliableforlossof
w/hisobligation substitutewheninDELAY,NEGLIGENCE,orFRAUD.
1.Therightofinjuredpartyis(1)cancelcontract&damages;
or(2)fulfillobligation&damages 6.JOINTOBLIGATION
-obligationistobepaid proportionately bydebtorsortobe
3KindsofObligation(AccdngtoPERSONOBLIGED) demanded proportionately bycreditors
1. UNILATERAL –only1partyobligedtocomply
2. BILATERAL –bothparties;performancenotsametime 7.SOLIDARYOBLIGATION
3. RECIPROCAL –bothparties;performancesametime -eachoneofdebtorshasrighttorenderoreachoneof
creditorshasrighttodemandthe entirecompliance w/
3.OBLIGATIONW/APERIOD prestation
-demandability/extinguishmentsubjecttotheexpirationof
period MAXIMS&SYNONYMS

PERIOD –intervaloftime;eithersuspendsdemandabilityor MAXIMS SYNONYMS
producesextinguishment
JOINTObligation “Toeachhis proportionate
own”
DAYCERTAIN –mustcome,notknownwhen
SOLIDARY “Oneforall,allfor individually&
Obligation one” collectively
7CASESCONSIDEREDTOBE“OBLIGATIONW/APERIOD”
1.Littlebylittle (3)SOLIDARYOBLIGATIONEXISTONLYIF:*RULES
2.Inpartialpayment 1.Lawstates
3.PayableASAP 2.Stipulationstates
4.WhenIcanaffordit 3.Natureofobligationrequires
5.WhenIhavethemoney
6.WhenIam ableto 2PRESUMPTIONSTHATOBLIGATIONISJOINT
7.Whenmymeanspermitmetodoso 1.Thedebtsbedividedasmanysharesasthereare
debtors/creditors.
PERIOD CONDITION 2.Thedebtors/creditorsaredistinctfrom oneanother.
certain uncertain

8.DIVISIBLEOBLIGATION theirrespectivecreditsproportionately.
-prestationis capable ofpartialperformance
9.INDIVISIBLEOBLIGATION c.DACIONINPAYMENT(dacionenpago)
-prestation incapable ofpartialperformance -alienationofpropertytothecreditorinsatisfactionofdebt
10.OBLIGATIONW/APENALCLAUSE
-onew/accessoryundertakingattachedtoobligationto 3REQUISITESOFDACIONINPAYMENT
assumegreaterliablityincaseofbreach/non-fulfillmentof 1.Consentofcreditor
obligation 2.NOTprejudicialtoanothercreditor
3PURPOSESOFPENALCLAUSE 3.Debtornotinsolventdeclaredbyajudicialdecree
1.Ensureperformanceofobligation
2.Substitutefordamages&interestincaseofnoncompli-ance CESSION DACIONINPAYMENT
3.Penalizedebtorincaseofbreach NOTallproperties
IncaseobligationhasaPENALCLAUSE allproperties NOTrequireallcreditors
GeneralRule: Penaltytakestheplaceofdamages&interestin actofnovation
caseofnon-compliance. requiremorethan1creditor transferownership
Exceptions: mayhappen
1.Stipulationstates. NOTactofnovation during solvency ofdebtor
2.Debtorrefusetopaypenalty.
3.Debtorguiltyoffraudinperformanceofobligation. NOTtransferownership
NULLITYOFPRINCIPALOBLIGATIONORTHEPENALCLAUSE requirespartial/total insol-
Nullityofprincipalobligation=nullityofpenalclause vency
Nullityofpenalclause=NOTnullityofprincipalobligation
10MODESOFEXTINGUISHMENTOFOBLIGATIONS d.TENDEROFPAYMENT&CONSIGNATION
1.Paymentorperformance TENDEROFPAYMENT –actofofferingthecreditorwhatis
2.Prescription duetohim w/ademandthatthecreditoracceptit
3.Compensation CONSIGNATION –actofdepositingthingduew/thecourt
4.Confusion/merger whencreditorcannot/refusesacceptanceofpayment
5.Condonation/remission
6.Fulfillmentofresolutorycondition 5REQUISITESOFCONSIGNATION
7.Annulment 1.Debtdue.
8.Rescission 2.Creditorrefusedthetenderofpaymentw/ojustcause
9.Novation 3.Noticeofconsignation  alreadygiventopersonsinterested
10.Lossofthingdue infulfillmentofobligation
1.PAYMENT/PERFORMANCE 4.Consignationofthing/amountdue
-Paymentmeansdeliveryofmoney&performanceof 5.Subsequentnoticeofconsignationtointerestedpersons
obligation
2PLACEOFPAYMENT 5VALIDCONSIGNATIONW/OPREVIOUSTENDEROF
1.Atplaceagreedupon PAYMENT
2.Ifw/oagreement 1.Creditorisabsent/unknown.
a.Objectis indeterminate –paidatdomicileofDEBTOR 2.Creditorisincapacitatetoreceiveattimeitisdue.
b.Objectis determinate –placeofthingatthetimeof 3.Creditorrefusedgiveareceipt,w/ojustcause.
constitutionofobligation 4.2ormorepersonsclaim therighttocollect.
4SPECIALMODESOFPAYMENT 5.Titleofobligationlost.
a.Applicationofpayment
b.Cession 2.LOSSOFTHINGDUE
c.Tenderofpayment&consignation -perishes,disappears,orgoesoutofcommerce;existenceis
d.Dacioninpayment unknown;cannotberecovered
a.APPLICATIONOFPAYMENT
-designationofdebt to w/cpaymentmustbeapplied when 3REQUISITESTOEXTINGUISHOBLIGATIONDUETOLOSS
debtorhasseveralobligationsofsamekindinfavorofsame 1.Determinatething.
creditor. 2.W/odebtor’sfault.
3REQUISITESOFAPPLICATIONOFPAYMENT 3.Nodelay.
1.Only1debtor&1creditor
2.2ormoredebts,samekind 3.CONDONATION/REMISSION
3.Alldebtsaredue -gratuitousabandonmentofrightbythecreditor
4.InsufficientpaymenttoexinguishALLdebts
3RIGHTSTOMAKEAPPLICATIONOFPAYMENT 3REQUISITESOFAVALIDCONDONATION/REMISSION
1.RightbelongstoCREDITOR. 1.Itmustbegratuitous.
2.Ifdebtordoesnotavail,creditorcangivehim receipt 2.Acceptedbyobligor.
designatingthedebtfrom whichpaymentwillbeapplied. 3.Obligationisdemandable.
3.Ifdebtoracceptsthereceipt,hecannotcomplainunless
THEREISjustcausetoinvalidatethecontract. 4.CONFUSION/MERGER
b.CESSION -meetingin1personofqualitiesofdebtor&creditorw/same
-debtorabandonsALLhispropertyforcreditor’sbenefitto obligation
obtainpaymentfrom proceedsofhisproperty
5REQUISITESOFVALIDCESSION 3REQUISITESOFVALIDCONFUSION/MERGER
1.1debtor&2ormorecreditors 1.Themergerofcharactersofdebtor&creditormustbein
2.Debtorisinpartial/totalinsolvency. sameperson.
3.DebtortodeliverALLhispropertytocreditors 2.Takeplacebetweenprincipaldebtor&creditor.
4.Debtisdue&demandable. 3.Clear&definite.
5.Creditorsmustselltheproperties&applytheproceedsto
5.COMPENSATION
-2personsaredebtors&creditorsofeachother

6ESSENTIALREQUISITESOFCOMPENSATION
1.Partiesbothprincipaldebtors&creditorsofeachother.
2.Compensationisnotprohibitedbylaw.
3.Noretention/controversyby3rd person.
4.2debtsaredue&demandable.
5.2debtsareliquidated.
6.2debtsbothinmoney/consumablethings.

(2)CLASSESOFCOMPENSATION
1.Astoeffect
a. TOTAL –obligationscompletelyextinguished.
b. PARTIAL –abalanceremains

2.Astooriginorcause

a. LEGAL –bylaw      b. GRATUITOUS –noconsiderationreceivedinexchangeof
b. VOLUNTARY/CONVENTIONAL –agreementofparties whatisgiven
c. JUDICIAL –orderfrom thecourt      c. REMUNERATORY –somethingisgivenforbenefit/service
d. FACULTATIVE –1ofpartiescanchoose/opposeclaiming thathadbeenrenderedpreviously
compensation 4.RISKOFFULFILLMENT
6.NOVATION      a. COMMUTATIVE –equivalentvaluesaregivenbyboth
-substitution/changeofobligation parties
-substitutionofdebtor      b. ALEATORY –fulfillmentofcontractdependsonchance
-subrogationofcreditor (eg.insurance)
(3)OBLIGATIONSMAYBEMODIFIEDBY: 5.IMPORTANCE
1.Changingobject/principalconditions. (REALNOVATION)      a. PRINCIPAL –contractmaystandalone(eg.sale,
2.Changingthepersonofdebtor/creditor. (PERSONAL partnership)
NOVATION)      b. ACCESSORY –existencedependsonanothercontract
a. Substitution –changeofdebtor (pledge,guarantee)
b. Subrogation –changeofcreditor      c. PREPARATORY –contractnotanendbyitselfbuta
3.Changingpersonoftheparties&theobjectsofprincipal meansthruw/cothercontractsmaybemade(eg.agency)
condition. (MIXEDNOVATION) 6.NAME
4REQUISITESOFNOVATION      a. NOMINATE –contractgivenaparticular/specialname
1.Oldvalidobligation. (eg.partnership)
2.Agreementofpartiestonewobligation.      b. INNOMINATE –notgivenspecialname(eg.Igivethat
3.Extinguishmentofoldobligation. youmaygive)
4.Validityofnewobligation. 7.SUBJECTMATTER
2FORMSOFNOVATIONBYSUBSTITUTIONOFDEBTOR      a.Contractsinvolvingthings
1. EXPROMISION –w/consentofcreditor,NOconsentofold      b.Contractsinvolvingrights/credits
debtor      c.Contractsinvolvingservices
     2REQUISITES 3STAGESOFCONTRACT
     a.Initiativeof3rd person. 1. PREPARATION/CONCEPTION –preparatorystepstoperfect
     b.Consentofcreditor. contract
2. DELEGACION –allmustagree(creditor,olddebtor,new 2. PERFECTION/BIRTH –meetingofmindsbetween2
debtor) contractingparties
     3REQUISITES 3. CONSUMMATION/TERMINATION –termsofcontractare
     a.Initiativefrom olddebtor. performed,&contractisfullyexecuted
     b.Consentofdebtor. 5BASICPRINCIPLES/CHARACTERISTICSOFACONTRACT
     c.Acceptancebycreditor. 1.PRINCIPLEOFAUTONOMY(libertytocontract)
7.SUBROGATION Providedtheyarenotcontraryto:
-changeofcreditor      a.Law
2KINDSOFSUBROGATION      b.Morals
1. CONVENTIONAL –consentoforiginalparties&3rd person      c.Goodcustoms
2. LEGAL –bylaw      d.Publicorder
     a.creditorpaysanotherpreferredcreditorevenw/odebtor’s      e.Publicpolicy
knowledge 2.MUTUALITYOFCONTRACTS
     b.3rd personpaystheexpressapprovalofdebtor -thecontractmustbindbothparties;itsvalidity/compliance
     c.3rd personpaysevenw/oknowledgeofdebtor cannotbelefttothewillofoneofthem
3.RELATIVITYOFCONTRACTS
                                                                                                        -Contractstakeeffectonlybetweentheparties,theirassigns&
CONTRACT –meetingofmindsbetween2personstogive heirsexceptwhentherearerights&obligationsnot
somethingortorenderservice. transmissible:
3ELEMENTSOFCONTRACT      a.bytheirnature
1. ESSENTIAL –w/othem,contractcannotexist      b.bystipulation(stipulationporautri)
     a.CONSENTofcontractingparties      c.byprovisionoflaw
     b.OBJECTCERTAIN–subjectmatter 4.CONSENSUALITYOFCONTRACTS
     c.CAUSE/CONSIDERATION -Contractsareperfectedbymereconsent
Insomecontracts,ffarealsoessential: Exceptions:
     d.FORM      a. REALCONTRACTS –perfectedbydelivery
     e.DELIVERY      b. FORMAL/SOLEMNCONTRACTS –specialform required
2. NATURAL –foundincertaincontract,presumedtoexist foritsperfection
unlessstipulated 5.OBLIGATORINESSOFCONTRACTS
3. ACCIDENTAL –variousparticularstipulationsthatmaybe -Thecontract,onceperfected,hastheforceoflawbetween
agreeduponbycontractingparties partieswhichboundtocomplyingoodfaith
(7)CLASSIFICATIONOFCONTRACTS 4KINDSOFINNOMINATECONTRACTS
Accordingto: 1.Igivethatyoumaygive
1.PERFECTION/FORMATION 2.Idothatyoumaydo
     a. CONSENSUAL –perfectedbymereconsent 3.Igivethatyoumaydo
     b. REAL –perfectedbydelivery 4.Idothatyoumaygive
     c. FORMAL/SOLEMN –specialformalitiesareessential 4RULESFORINNOMINATECONTRACTS
beforeperfectionofcontract 1.Agreementofparties
2.PARTIESOBLIGATED 2.LawonObligations&Contracts
     a. UNILATERAL –only1hasobligation 3.Rulesonmostanalogousnominatecontract
     b. BILATERAL –bothpartiesrequiretorenderreciprocal 4.Customsofplace
prestations STIPULATIONPORAUTRI
3.CAUSE -stipulationin favorof3rd person
     a. ONEROUS –exchangeofconsiderations

5REQUISITESOFSTIPULATIONPORAUTRI 2.FRAUD/DOLO
1.Stipulationinfavorof3rd person -whenthrough insidiouswords/machinations ofoneofthe
2.StipulationisonlyPART,notthewholeofthecontract. parties,INDUCEDtheothertoenterintoacontract,&w/othem,
3.Bothpartiesmustconferreduponafavorof3rd person hewillnotagree.
4.3rd personmustaccept&sayittodebtorbeforeits
revocation/cancellation DOLOCAUSANTE DOLOINCIDENTE
5.Neitherofbothpartiesbethelegalrepresentation/autho- Serious Notserious
rizationof3rd person causeinducespartyto NOTthecausetoenterinto
CONSENT ENTERintocontract contract
-meetingof offer(certain)&acceptance(absolute) upona makecontract voidable contractisvalid;liable
thing for damages
5REQUISITESOFCONSENT
1.Mustbegivenby2ormoreparties 7RULESOFFRAUD
2.Partiesarecapacitatetoenterincontract 1.Failuretodisclosefactswhentheseneedstoberevealed,is
3.Novitiationofconsent afraud.
4.Noconflictbetween declared&intended 2.FraudshouldbeSERIOUS(dolocausante)&SHOULDNOT
5.Legalformalitiesmustbecomplied bedonebyBOTHpartiestomakecontract voidable.
7RULESONOFFER/ACEPTANCE 3.Incidentalfraud(doloincidente)ONLYobligespersonto
1.An offer mustbe certain. PAYDAMAGES.
2.BusinessadvertisementsforsaleareNOToffersbutONLY 4. Usualexaggerationsintrade,whenotherpartyknowthe
invitationstomakeanoffer. “real”facts,isNOTFRAUD.
3.AdvertisementsforbiddersareONLYinvitations. 5.A mereexpressionofopinion isNOTFRAUDUNLESSmade
4.An acceptance madebyletter/telegram doesNOT byan expert &theotherpartyrelieson hisspecialknowledge.
bind offeror EXCEPTfrom theTIMEitcametohisknowledge. 6. Misrepresentationmadeingoodfaith isNOTFRAUDbut
5.An offer madethroughan agent isacceptedfrom theTIME mayconstitutean error.
theacceptanceisdonethroughan agent. 7. Misrepresentationby3rd person DOESNOTvitiateconsent
6.An offer is ineffectiveupondeath,insanity,insolvency,of UNLESSitcreated substantialmistake.
EITHERpartyBEFOREacceptanceismade.
7.When offeror allowed offeree acertainperiod 3.VIOLENCE
to accept, offer MAYbewithdrawnATANYTIMEunlessthere - serious/irresistibleforce isemployed.
issomethingPAID/PROMISED.
3personswhoCANNOTGIVECONSENTtoacontract (if 2RULESONVIOLENCE
enteredinto,contractis voidable) 1. Serious/irresistibleforce isemployedw/cconstitutesthe
1. UNEMANCIPATEDMINORS reasonwhyoneenteredintoacontract.
2. INSANE/DEMENTEDPERSONS (unlesstheyactedDURING 2.ViolenceANNULSobligationalthoughitisDONEby
LUCIDINTERVAL) 3rd personnotpartofcontract.
3. DEAF-MUTES whoDONOTknowhowtowrite
DEMENTEDPERSON –NOTexactlyinsane;difficulttodistin- 4.INTIMIDATION
guishrightfrom wrong -1ofthepartiesiscompelledbya reasonable&well-grounded
LUCIDINTERVAL –periodwhenanINSANEhasacquired fearofanimminent&graveevil uponhisperson/propertyto
SANITY temporarily,therefore,capacitatedtoenterintoavalid givehisconsent.
contract
2RULESonpersonsWHOCANNOTGIVECONSENTtoa 3RULESONINTIMIDATION
contract 1. Age,sex,&conditionofperson mustusedtodeterminethe
1.Ageofmajorityis 18yrsold degreeofintimidation.
2.AcontractenteredintobyUNEMANCIPATEDMINORw/o 2.IntimidationANNULSobligationalthoughitisDONEby
parents/guardian’sconsentis voidable,except: 3rd personnotpartofcontract.
     a.MinorMISREPRESENTShisage(estoppel) 3.A threattoenforceone’sclaim (claim mustbejust&legal),
     b.Contractinvolves sale&delivery ofnecessitiestominor DOESNOTvitiateconsent.
5VICESOFCONSENT
- NOTE: WhenthereisaDEFECTIVECONSENTofEITHERof VIOLENCE INTIMIDATION
parties,contractis voidable;Remedy: annulmentofcontract. External Internal
1.MISTAKE/ERROR Physicalcontact/coercion NOphysicalcoercion;ONLY
2.FRAUD/DECEIT MENTAL/MORALcoercion
3.VIOLENECE
4.INTIMIDATION 5.UNDUEINFLUENCE
5.UNDUEINFLUENCE -apersontakes improperadvantageofhispower overother’s
1.MISTAKE/ERROR will,deprivingtheothertohis reasonablefreedom ofchoice.
-wrongconception&lackofknowledgeuponathing
(2)MISTAKESW/CVITIATESCONSENT 3RULESONUNDUEINFLUENCE
Itshouldreferto: 1.Thereisapersonwhotakes improperadvantageofhis
1. substanceofthing thatistheOBJECTofcontract power overother’swill,deprivingtheothertohis reasonable
2. conditions w/cMOVEDeither/bothpartiestoenterinto freedom ofchoice.
contract 2.UndueinfluenceANNULSobligationalthoughitisDONEby
4RULESONMISTAKE 3rd personnotpartofcontract.
1. Mistaketoidentity/qualifications ofeitherofpartieswill 3.Toconstituteundueinfluence,ffcircumstancesmustbe
vitiateconsentONLYwhenITisthe principalcauseofcontract. considered:(1)confidential,family,spiritual,&otherrelations
2.Simplemistakeofaccountmustbe corrected. ofparties;or(2)theaggrievedpartyissufferingfrom mental
3. Nomistake ifpartiesknewtherisk/doubtaffectingOBJECT weakness;or(3)ignorant;or(4)infinancialdistress.
ofcontract.
4.Whenoneofpartiesisunabletoreadorthecontractisin SIMULATIONOFCONTRACT
languagenotunderstoodbyhim,&mistake/fraudisalleged, -processofINTENTIONALLYdeceivingothersbyproducinga
thepersonenforcingthecontractmustFULLYexplainedthe contractnotreallyexist (absolutesimulation), orw/cis
termstohim. differentfrom trueagreement (relativesimulation).

2KINDSOFSIMULATEDCONTRACT
1. ABSOLUTESIMULATION (thepartiesDONOTintendtobe
boundatall)
-completelyfictitious/make-believe;VOID
2. RELATIVESIMULATION (partiesconcealtheirtrue/real
agreement)
-partiesareboundtoreal/trueagreement, EXCEPT:
     a.contractprejudice3rd person

     b.purposeiscontrarytolaw,morals,goodcustoms,public 5RESCISSIBLECONTRACTS
order,publicpolicy 1.Thoseenteredbyguardians&sufferedLESION bymorethan
7REQUISITESOFOBJECTOFCONTRACT ¼ofvalue ofthevaluethatistheOBJECT.
1.Specific&certain 2.Thoseagreeduponinrepresentationofabsentees,ifthe
2.Servicesnotcontrarytolaw,morals,goodcustoms,public absenteessufferedLESION.
order,publicpolicy 3.ThoseundertakeninFRAUDofcreditorswhenthecreditors
3.Services/thingsmustNOTbelegally/physicallyimpossible cannotfurtherclaim.
4.Services/thingsare w/incommerceofmanincludingfuture 4.Ifenteredintocontractw/oknowledge/approvaloflitigants
things underlitigation.
5.RightsareNOTTRANSMISSIBLE. 5.Contractssubjectedtorescissiondeclaredbylaw.
6.Determinate(kind)ordeterminable(w/otheneedofnew
contract/agreement) 3VOIDABLECONTRACTS
7.NOcontractbeenteredfor futureinheritance UNLESSlaw 1. Oneoftheparties INCAPABLEofgivingconsenttoa
states contract.
4REQUISITESOFCAUSE 2.Thosewhereconsentvitiatesbyvicesofconsent.(MFVIU)
1.Itisjust&equitable. 3.Thoseagreedinthestateofdrunkenness/hypnoticspell.
2.Itexists. 3UNENFORCEABLECONTRACTS
3.Itislawful. 1.Thoseenteredinnameofotherperson,orwhoacted
4.Itistrue. BEYONDhispowers.
LESION 2.Thosewhodonotcomplyw/the StatuteofFrauds.
-inadequacyofcause(eg.insufficientpriceforthingsold) 3. Bothparties areincapableofgivingconsenttoacontract.
RULESONLESION 7VOID/INEXISTENTCONTRACTS
-LesionDOESNOTinvalidatecontract,exceptthereis: 1.Thosew/careABSOLUTELYsimulated/fictitious.
     a.Fraud 2.Thosew/ccontemplatean impossibleservice.
     b.Mistake 3.ThosewhoseOBJECTisoutsidethecommerceofman.
     c.Undueinfluence 4.ThosewhoseCAUSE/OBJECTdidnotexistattimeoftran-
2FORM OFCONTRACTS saction.
1.Contractsinwriting 5.ThosewhoseCAUSE/OBJECT/PURPOSEiscontrarytolaw,
2.Contractsinapublicinstrument morals,goodcustoms,publicorder,orpublicpolicy.
1.Contractsw/cmustbeINWRITINGtobevalid: 6.ThosewhereINTENTIONofpartiestoprincipalobject
     a.DonationofpersonalpropertyexceedsP5000. CANNOTbeascertained.
     b.Agent’sauthorityinsaleofland/anyinterest. 7.Thoseexpresslyprohibited/declaredVOIDbylaw.
     c.Contractofantichresis.
     dStipulationtopayinterestonloans.
     e.Stipulationtoreducecommoncarrier’sextraordinary
diligence&tolimititsliability.
2. Contractsw/cmustbeINAPUBLICINSTRUMENTtobe
valid:
     a.Donationofrealproperty(boththedonation&accep-
tance).
     b.Saleofrealproperty.
     c.Partnershipwhererealproperty/rightsiscontributed;or
whencapitalcontributionexceedsP3000.
REFORMATIONOFINSTRUMENTS
-REMEDYinequityinw/cawritteninstrumentis
made/construedtotheREALintentionofpartieswhenthereis
an error/mistake.
(5)CASESREFORMATIONOFINSTRUMENTISAVAILABLE
1.Mutualmistakeofparties.
2.Onepartywasmistaken&theotheractedfraud.
3.Onepartywasmistaken&theotherknew/believedthatthe
instrumentdidnotstatetheirREALagreement.
4.Ignorance,lackofskill,negligence,orbadfaithofperson
draftingtheinstrumentDOESNOTstatetheTRUEINTENTION
ofparties
5.Twopartiesagreeonmortgage/pledgeofpersonal/real
propertyBUTtheinstrumentstatesthepropertyissold
ABSOLUTELY,orw/therighttorepurchase.
(3)NOREFORMATIONOFINSTRUMENTWHEN:
1.SimpledonationintervivoswhereNOCONDITIONis
imposed.
2.Will.
3.RealagreementisVOID.
4KINDSOFDEFECTIVECONTRACTS
1. RESCISSIBLE –validuntilrescinded;hasALLessential
requisitesbutbecauseof injury/damage tooneoftheparties,
thecontractmayberescinded.
2. VOIDABLE –validuntilannulled;hasALLessential
requisitesbutbecauseof defect inconsent,contractmaybe
annulled.
 3. UNENFORCEABLE –cannotbesued/enforced unless
ratified;noeffectNOW butmaytakeeffectuponratification.
4.VOID –NOeffectatall; cannotberatified/validated.