
Prescription – Art. 1106-112
Acquisitive – All things within the commerce of
men may be acquired thru acquisitive
prescription.
Note: Property of the State or any of its
subdivision not patrimonial in character cannot
be the object of prescription.
Ordinary ACQ. Prescription Requisites:
1.
2.
3.
4.
Possession of things
In good faith (GF)
With Just title
For the time fixed by law (10years)
POSSESSION OF THINGS IN GOOD FAITH
In the concept of an OPPUA:
1.
2.
3.
4.
5.
Owner
Public
Peaceful
Uninterrupted
Adverse
Note: Possession by virtue of license, and mere
tolerance shall not be available for prescription.
(Jurisprudence)
Extraordinary ACQ. Prescription Req:
(Jurisprudence)
1.
2.
3.
4.
Possession of things
Without good faith
Without Just title
Adverse possession for 30 years
Renouncement

Acquisitive prescription may be
renounced. However, future
renouncement of right to prescribe is
not allowed.
Tacit Renouncement – acts which
imply abandonment of the right
acquired
Prescription of Actions –Art. 1139-1155
Extinctive – Actions prescribe by the mere
lapse of time fixed by law
Interruption to Possession
Statute of Limitations:
Natural Interruption
30 years
Cessation of ownership for more than 1 year
Note: Does not revive possession


Natural interruption for less than one year
shall be counted in favour of the time
elapsed.
Tacit or Express Recognition of the
ownership of the owner’s right interrupts
possession.
Real Actions (Immovable)
10 years
Mortgage Action
Written Contract
Obligation created by Law
Upon a Judgement
8 years
Actions to Recover Movable
6 years
Oral and Quasi-Contract
Civil Interruption
5 years
Judicial summons to the possessor
All other actions whose periods are not fixed by the
Code
GR: interrupts possession
4 years
Injury of Rights and Quasi-Delict
XPN: Deemed not to have been issued if J.S.
is:
(1) Void for lack of legal solemnities
(2) Plaintiff desists or should allow
proceedings to lapse
(3) Possessor should be absolved from
the complaint
Prescription of Ownership and Other Real
Rights – Art. 1127-1134
Good Faith of Possessor
Possession during war time, when civil courts
are not open shall not be counted against the
adverse claimant.
1 year
Martial and any exercise of Public Officer
Forcible Entry and Unlawful Detainer
Defamation
Reminder: Demand of Right of Way and Abate a
Public Nuisance does not extinct.
Note: Prescription of Actions is interrupted upon
(1)
(2)
(3)
filing before the court;
written extrajudicial demand by the
creditors and, when there is
any written acknowledgement of the debt
by the debtor
Mere reminder does not constitute demand.
Obligations: General Provisions – Art. 11571162
Obligation – is a juridical necessity to give, to
do, or not to do
Requisites of an Obligation: (PAPE)
1.
2.
3.
4.
Passive
Active
Prestation
Cause
Sources of Obligations:
1.
2.
3.
4.
5.
Law – expressly, not presumed
Contracts
Quasi-contracts – N.G. & S.I.
Delicts - RPC
Quasi-delicts – Torts, Culpa Aquiliana,
fault, negligence
Every person criminally liable for a felony is
also civilly liable
1.
2.
3.
Restitution – the thing itself must be
returned with allowance for any
deterioration. Thing itselg shall be
restored.
Reparation – Court shall determine the
damage. Sentimental and the value of
the thing is taken into consideration.
Indemnification for consequential
damages – Other damages, includes
the family or third person.
Responsibility for FAULT or NEGLIGENCE is
entirely separate and distinct from civil liability
arising from negligence under the RPC.
Double jeopardy - Plaintiff cannot recover
twice for the same act or omission.
Negoturiom Gestio – Reimbursement for
officious management. Obligation to reimburse
to avoid unjust enrichment.
b.
c.
Solutio Indebeti – Payment by mistake, it must
be returned. Obligation to return.
Nature and Effect of Obligations – Art.11631192
Fortuitous events – those events which cannot
be foreseen, or if foreseen, are inevitable.
Determinate Thing – particularly designated or
physically segregated
a.
b.
c.
If lost without the fault of debtor or
through fortuitous event, the obligation
is extinguished
To take care of it with a diligence of a
good father
Deliver the thing and its fruits
a. Natural
b. Civil
c. Industrial
Culpa Aquiliana – master-servant rule
does not apply
Culpa criminal – Defense of a
Diligence of a Good father is not
available. If the employee is guilty and
insolvent, employer is bound.
a.
b.
c.
d.
Independent of DR’s will
Foreseeing the event is
impossible, if foreseen, inevitable
Impossible for DR to perform his
obligation
Participation of the obligor is
absent
GR: No person shall be responsible for those
event which could not be foreseen, if foreseen,
inevitable.
XPN: In cases expressly probided
Before Delivery – personal right
After Delivery – real right
Indeterminate Thing – genus never perishes
(jurisprudence)
Liability for damages
Diligence
a.
b.
GR: Diligence of a good father
EO: Extraordinary diligence
a.
b.
c.
Note: If obligor delays, or has promised the
same thing to two or more persons, he shall be
responsible for any F.E. until he has effected
the delivery.
CREDITOR’s PRESUMPTION
Test of Negligence – What would a prudent
man do? (Picart vs. Smith)
a.
Kinds of Negligence
b.
a.
Culpa contractual – master-servant
rule
By law
Declared by stipulation
Nature of obligation requires
assumption of risk
Receipt without reservation by the
creditor, presumes interest have been
paid.
Receipt of a later instalment of a debt
without reservation to prior instalments
shall likewise presume that such
instalments have been paid.
Remedies CR can enforce his claims against
the DR.
1.
2.
3.
4.
Demand for specific performance
Pursue the property in possession of
the DR to satisfy claim. XPN: exempt
by law (family home)
Accion subrogatoria
Accion pauliana
Rule on Transmissibility of Rights
GR: All rights acquired are transmissible
XPN:
1.) Stipulation of the parties
2.) Nature of the contract
3.) Strictly personal
Pure and Conditional Obligations
Pure – Every obligation whose
performance does not depend upon a
future or uncertain event or upon a past
event unknown to the parties;
DEMANDABLE AT ONCE
Conditional – Acquisition and
extinguishment, or loss of rights shall
depend upon the happening of the event
which constitutes the condition.
a. Uncertain event which wields an
influence on a legal relationship
b. Suspensive – the happening gives
rise to an obligation
c. Resolutory – the happening
extinguishes the obligation
d. Potestative – depends upon the
will of one of the parties
a. On the part of the DR
i. Suspensive – VOID
ii. Resolutory –
VALID
b. On the part of the CR
i. Susp/Res – VALID
Note: Potestative-Suspensive (DR) – VOID
c. Casual – Depends upon
chance or will of a third
person
d. Mixed
e. Impossible Condition – Contrary
to Law, Morals, Public Policy,
Public Order, or Good Customs
f. Divisible – capable of partial
performance, measured in units,
executed in number of days,
installments
g. Indivisible –not capable of partial
performance, if physically capable
of partial performance but
contracting parties stipulates it as
indivisible
GR: In Obligation to give, once the
condition has been fulfilled, it shall
retroact at the day of the constitution of
the obligation.
XPN: In Reciprocal and Unilateral
Obligations
In Obligations to DO or NOT TO DO –
courts shall decide whether it retroacts
RIGHTS OF PARTIES BEFORE THE
FULFILLMENT
CR: Bring appropriate actions for
preservation of rights, notify all 3rd
persons, ask DR to provide security in case
of insolvency
DR: may recover payment by mistake
(S.I.), notify all 3rd persons
EFFECTS IF DR VOLUNTARILY PREVENTS
FULFILLMENT OF the CONDITION
a. Condition is deemed fulfilled
b. There must be intent on the part
of DR to prevent compliance + the
condition must have been actually
prevented
c. MALICE or FRAUD is not required
LOSS OF THE THING – perishes, goes out
of commerce, disappears and
unrecoverable
a. With DR’s Fault – not extinguished
b. Without DR’s fault - extinguished
DETERIORATION –
a.
b.
w/o DR’s fault – impairment shall be
borne by CR
With DR’s Fault –
a. Rescission + DMGS
b. Fulfilment + DMGS
IMPROVEMENT
a.
b.
By nature or time – impairment shall
benefit CR
Expense of DR – Have rights under
usufructuary
a. No dmg to principal – may be
removed
b. If it causes dmg – delivered to
CR
RULES ON RESOLUTORY CONDITION
a.
b.
Obligation extinguished
Mutual restitution
RESOLUTION (1191 and 1192)
a.
b.
c.
d.
e.
f.
Power to rescind obligation is implied
in reciprocal in case each one of the
obligors shall not comply
Fullfillment + DMGS
Rescission + DMGS
Should not prejudice 3rd persons
First infractor shall be equitably
tempered (both committed breach)
If cannot be determined, IN PARE
DELICTO
IN DIEM – Resolutely period take effect at one,
but terminate upon arrival of day
Alternative Obligations – Art.1200-1206
a.
b.
R.O.C. belongs to the DR, unless
expressly granted by the DR to the CR
Alternative ceases, transmute to
simple and pure
Facultative – One prestation but capable of
substitution when needed
Joint and Solidary Obligations – Art.12071222




Indivisible – Must act collectively; xpn:
authorized to act for the others
May only be enforced by proceeding
against all the DRs
Rights of CR may only be prejudiced
only by their collective acts
If anyone does not comply, obligation
is converted to monetary obligation to
pay dmgs
o Those DRs who were ready
need not contribute
Rights of the Solidary Parties
Creditor
a. CR may proceed against any
one of the solidary DR or
some or all of them
simultaneously
EXTINGUISHMENT OF SOLIDARY
OBLIGATION
1.
2.
GR: Joint Obligation – to each his own
a.
EX DIE – fixed, demandable when time has
come
b.
Alternative – Fulfillment of one the prestation
extinguishes the obligation
Solidary Obligation – One for all, all for one
Obligations with a Period – Art. 1193-1198
by one of them, payment
shall be made to the one who
paid
3.
4.
Novation, Confusion, Remission of
Debt by any of the Solidary CR or with
any of the Solidary DR
a. Total remission obtained by
one of the DR does not entitle
him reimbursement (unjust
enrichment)
Payment made by one of the solidary
DR
Through a Fortuitous event, thing is
lost
Prestation is impossible without fault of
the S.DR
Divisible and Indivisible Obligations – Art.
1225
DIVISIBLE –capable of partial performance
a. Execution of a certain no. of days
b. Measured in metric units
c. Analogous things which by nature
are susceptible of partial
performance
DR
a.
b.
DR may pay any one of the
solidary CR
IF any demand, judicial or
extrajudicial, has been made
INDIVISIBLE – not susceptible of partial
performance
a. Even though the object may be
physically divisible, an obligation is
indivisible if provided by:
a. Law
b. Intended by the parties
Obligations with a Penal Clause – Art. 12261229
Penal Clause – substitute for indemnity for
damages in case of non-compliance
Damages - awarded another damages in case
of non-payment of penal clause, or guilty of
fraud in the fulfilment of obligation
Proof – not necessary
Reduction of Penal Clause
a.
b.
Partly or irregularly complied by the
obligor
If the penal clause is iniquitous or
unconscionable (DISCRETION)
Nullity of Accessory Clause – does not
negate Principal. However, nullity of Principal
negates the accessory.
(8) Recission
(9) Fulfilment of Resolutory Condition
(10) Prescription
Payment or Performance – Art.1232-1251
Payment or Performance – is made by
delivery of the thing or the rendition of service
that was contemplated.
Payment shall be made in legal tender
(Philippine Peso)
Delivery of promissory notes and mercantile
documents shall produce effects only upon:
a.
b.
CR is not bound to accept payment made by 3rd
persons.
a.
b.
c.
Stipulation,
3rd person has an interest
a. W/ Knowledge – subrogation
b. w/o knowledge – beneficial
reimbursement
; and does not intend to be reimbursed
(donation)
SPECIAL FORMS OF PAYMENT
1.
DATION IN PAYMENT – Property is
alienated to satisfy the monetary
obligation. Governed by law of sales
PARTIAL PAYMENT IS NOT ALLOWED.
Payment must be made by one who:
1.
2.
3.
4.
5.
Performance or payment
Loss of the thing due
Condonation or remission of debt
Confusion or Novation
Compensation
Novation
Annullment
Encashment
Impairment of the document through
the fault of the CR
Substantial performance in good fairh –
deemed complete less the damage suffered by
obligee (CR)
Extinguishment of Obligations: General
Provisions – Art. 1231
(1)
(2)
(3)
(4)
(5)
(6)
(7)
e.
was authorized to receive
payment
Made in good faith to any
person in possession of the
credit
Person in whose favour the obligation
has been constituted
Successor-in-interest
Person authorized
If incapacitated, valid if:
a. He has kept the thing
delivered
b. Redounded to his benefit
If to an unauthorized 3rd person, not
valid. EXCEPT
a. Redounded to the befit of the
DR
b. 3rd Person acquires right
c. CR ratifies the payment
d. If by CRs conduct, DR was
led to believe that 3rd person
Application of Payments – Art.1253
APPLICATION OF PAYMENT – applies when a
person have several debts that are due
a.
b.
Most onerous is satisfied
If debts due are of same
nature, proportionately
applied
Payment by Cession – Art.1255
CESSION – The debtor may cede or assign his
property to his creditor in payment of his debts.
The net proceeds of all his property will satisfy
the obligation. Governed by law on insolvency.
Tender of Payment and Consignation –
Art.1256-1261
Tender of Payment – DR validly offers to pay
what is due to CR
Consignation – made by depositing the thing
due at the disposal of the proper judicial
authority, before whom the TENDER OF
PAYMENT must be proved.
Requisites:
1.
2.
3.
4.
5.
Valid Debt due
Refusal without just cause of the Valid
Tender of Payment
Prior Notice of Consignation
Consignation at the proper judicial
authority
Subsequent notice of consignation
When consignation alone shall produce the
same effect:





When the CR is absent, unknown or
not at the place of payment
When the CR is incapacitated to
receive
When the CR refuses to give a receipt
When there are 2 or more persons
claiming the right to collect
When the title of the obligation is lost
Loss of the Thing Due – Art.1263-1268
Loss – When it perishes, goes out of
commerce or disappears in such a way its
existence is unknown it cannot be recovered.
(EXTINGUISHED) – must be determinate
object
GR: Obligation to deliver a determinate thing is
extinguished upon loss of the thing due.
XPN: Obligor is still liable even for Fortuitous
Event





Due to the fault of DR
o Presumption does not apply
during earthquake, flood,
storm or natural disasters
After DR incurred in delay
Law
Stipulation
Determinate thing comes from a
criminal offense
CONFUSION OR MERGER – Art. 1275-1278
Confusion – the obligation is extinguished from
the time the characters of CR and DR are
merged in the same person


Condonation or Remission of Debt –
Art.1270-1271
Codonation or Remission – Essentially
gratuitous, and requires acceptance of the
obligor. Subject to rules on inofficious
donations.
May be total or partial
EXPRESS CONDONATION – comply with
forms of donation

COMPENSATION - Art. 1278-1292
Compensation – when two persons are
principally obliged to each other, are also
creditors and debtors to each other.
Total or Partial – self explanatory
1.
Written if 5K above (public or private)
IMPLIED CONDONATION – Delivery of a
private document evidencing a credit made
voluntarily by the CR to DR




In Joint Obligation – only the share of
the DR or CR, in whom the characters
of DR and CR concur
In S.Obligation – merger in one of the
s.dr or s.cr extinguishes the whole
obligation. They may demand
reimbursement (DR). He shall be liable
to his co-CR.
Remedy: must be claimed inofficious
(annulment)
Presumption that document is
voluntarily given by CR to DR, unless
contrary is proved
If the accessory (pledge/mortgage) is
returned to DR, presumed to be given
voluntarily but does not extinguish
principal
2.
LEGAL – takes place by operation of
law, does not need consent of the
contracting party.
a. Each one of the obligors must
be bound principally to each
other
b. Both debts consists in sum of
money, or if consumable,
must be of the same kind, or
same quality if the latter has
been stated
c. Two debts are due
d. Liquidated and demandable
e. No retention or controversy
commenced by third persons
and communicated in due
time to the DR
CONVENTIONAL – parties may agree
upon the compensation of debts which
are not yet due
3.
4.
JUDICIAL or set-off – counter-claim
Facultative -
2.
Novation – Art. 1293-1304
3.
REAL OR OBJECTIVE NOVATION
4.


EXPRESS NOVATION
IMPLIED NOVATION
PERSONAL/SUBJECTIVE NOVATION
EXPROMISSION – without the will of the DR,
New DR is assigned on Old DR.
DELEGACION – DR initiates to substitute
himself to the new DR. (Requires consent of all
parties)
LEGAL SUBROGATION- CR pays another CR,
even without DR’s knowledge; when person not
interested in the obligation pays with express or
tacit approval of DR
CONVENTIONAL SUBROGATION – third
person acquires the consent of the original
parties and of the third person.
Note: transfers rights and obligations.
MIXED NOVATION
Total or extinctive – old obligation is totally
extinguished
Partial or Modificatory – old obligation
remains in force. Except as it has been
modified. (When incompatibility does not take
place in essential elements of an obligation
(implied))
REQUISITES of a NOVATION
1.
Previous valid obligation
Agreement between two contracting
parties to modify or extinguish
previous valid obligation
Modification or extinguishment of the
previous valid obligation
Validity of the new obligation
When principal obligation is extinguished, an
accessory obligation may exist only when it
benefits the 3rd person who did not give
consent; when there was a stipulation that the
accessory will subsist despite novation, when
novation is one where 3rd person is subrogated
in the rights of the creditor.
Novation is void, when the previous obligation is
void. Except when: annulment may be claimed
only by the DR or when a voidable contract is
ratified.
Contracts: General Provisions – Art. 13051317
Essential Requisites of Contracts: General
Provisions – Art.1318
1.
2.
3.
4.
5.
Consent
Object
Cause
Delivery (as to Real Contracts)
Observance of the forms and
solemnities (as to solemn and form
contract)
Natural elements – presumed in certain
contracts, unless set aside by the parties
Accidental elements – stipulated by the
parties
Nominate Contracts – named contracts
Innominate Contracts – unnamed contracts





Governed by:
o Stipulations
o Title I and II of the NCC
o Most analogous contract
o Customs of the place
I do that you may do
I do that you may give
I give that you may do
I give that you may give
STAGES OF CONTRACT –
1.
2.
3.
Preparation
Perfection
Consummation
GENERAL CHARACTERISTICS OR
PRINCIPLES OF A CONTRACT


1.
2.
3.
4.
5.
Autonomy – freedom to stipulate;
LIMITATION: Must not be contrary to
law, morals, public order, public policy,
or good customs
Relativity – Privity of contracts,
Contracting parties are only bound to
themselves, heirs, assigns and
successor-in-interest;
TRANSMISSIBILITY of contracts
o Not transmissible – by
nature, personal or by
stipulation
o Stipulation Pour Atrui
Demands fulfilment
Communicated his acceptance to the
obligor
Before its revocation
Mere incidental interest or benefit is
NOT sufficient
Contracting parties must have clearly
and deliberately conferred a favour
upon a third person.

Mutuality – Both parties are bound by
the force of law, validity or compliance
must not be left to the will of one of
them.
TORTUOS INTERFERENCE – Prohibited by
law
1.
2.
3.
Existence of contract
Knowledge of existence of contract
Interference without just cause
Consent – Art.1319-1346



There must be meeting of the minds,
whereby one binds himself to the other
to give something or render services
Offer must be certain, acceptance
absolute
Offer becomes ineffective upon the
death, civil interdiction, insanity,
insolvency of either party
Option Contract - Offer may be withdrawn
before the acceptance when the offeror has
allowed the offeree a certain period to accept.
Except when: The option is found upon
consideration, as something paid or promise
Business advertisement and Advertisement for
bidders are not offers. They are simply
invitations and the they are not bound to accept
the highest or lowest bidder.
QUALIFIED ACCEPTANCE – counter offer
ACCEPTANCE – may be implied or express
Incapable of consent:
1.
2.
3.
Unemancipated minors
Insane, Demented person, and
deaf-mutes who cannot read
VOIDABLE CONTRACTS


State of Drunkeness
Hypnotic spell
VICES OF CONSENT





Mistake – simple mistake does not
vitiate
Fraud – insidious word or
machinations; dolo causant; dolo
incidente; passive fraud
Violence – irresistible force; physical
coercion
Intimidation – mental coercion;
reasonable and well founded belief
that a grave or imminent evil is upon
the person, the person’s property, or
the person’s spouse, ascendant,
descendant and their property.
Undue Influence – taking advantage of
one’s moral ascendancy to obtain
consent
o Spirituality
o Family
o Condidential
Object of Contracts
1.
2.
3.
4.
Must be within commerce of men
Not impossible
Not contrary to L, M, PP, PO, GC
Transmissible
Rule on Future inheritance – VOID




Succession has not been opened
Object of contract forms part of the
inheritance
PN with object regarding expectancy
or right which is purely hereditary
XPN: In cases provided by law
Cause of Contracts – Art.1350-1351



Onerous
Gratuitous
Remuneratory
Cause must:
a.
b.
c.
Exist – Contracts w/o cause
produce no effect; presumed
Lawful – unlawful cause
produces no effect
True – False contracts are
void
LESION or INADEQUACY OF CAUSE – Does
not invalidate. Except in cases specified by law
a.
b.
Contract entered by
guardians and their wards
suffered lesion by more than
¼ of the value of things
Paired with:
i. Fraud
ii. Mistake
iii. Undue influence
Forms of Contracts – Art.1356-1358
GR: Contracts shall be obligatory in whatever
form they take.
XPN: When the law requires observance of
form and solemnities.



Validity
Enforceability
Convenience
o In Public Document – Real
Contracts, Cession, Power to
administer
o
In PVT document – all other
contracts where the amount
exceeds 500php

XPN: Sale of goods,
chattel or things in
action are governed
by Art. 1403
(PUBLIC)
Reformation of Instruments – Art.1359-1362
1.
2.
3.
There having been meeting of the
minds of the parties
a. If mistake, fraud, inequitable
conduct, or accident
prevented MOTM, it shall be
annulled
True intention is expressly stated in
the instrument
By reason of mistake, fraud, accident,
or inequitable conduct
Interpretation of Contracts – Art.1370-1379
1.
Verba Legis
2.
Intention – check the subsequent and
contemporaneous acts
REMEDY: Binding until annulled,
susceptible to ratification
They shall be understood in totality, must be
understood in the most adequate to render it
effectual
RATIFICATION – express or tacit
In case of ambiguity and obscurity, it shall be
understood based on the customs and usage of
the place
Unenforceable Contracts – Art.1403-1405
3.
4.
5.
Mutual mistake , reformation
One party mistaken, the other fraud, or
Inequitable conduct
Mistaken and the other did not state
true intention
Through ignorance, lack of skill or
negligence, bad faith
Subsequent and contemporaneous
actions differ from the instrument
Reformation is not a remedy in:
1.
Simple donations intervivos without
condition
2. Will
3. Void real contracts
4. No meeting of the minds
5. Estopped for enforcing one’s claim
GOVERNED BY RULES OF COURT (SC)
ANNULLMENT -
1.
Rescissible Contracts – Art.1380-1387
1.
2.
Grounds for Reformation
1.
2.
Where one parties are incapable of
giving consent
Vices of Consent
3.
4.
5.
Those which are entered into by
guardians; where the ward suffers
lesion for more than ¼ of the value
of the thing
Those agreed upon in
representation of absentees, if the
latter suffers lesion
Those undertaken in fraud of
creditors when the latter cannot in
any other manner collect the claims
due them (Culpa Aquiliana)
Tose under lis pendens without the
knowledge and approval of the
litigants or of proper judicial
authority
All other contracts declared by law
to be subject to rescission
Also: payments made during insolvency
REMEDY: May be rescinded; this action is
subsidiary – cannot be rescinded except when
all legal remedies have been exhaused
Voidable Contracts – Art.1397-1398
2.
Misrepresentation without authority
or legal presentation or acted
beyond his powers (unauthorized
contracts) – ratification before it is
revoked by other contracting party
Those that do not comply with the
STATUTE OF FRAUDS – REMEDY:
Ratified upon failure to object the
presentation of oral evidence; or
acceptance of benefit under them
a. An agreement not to be
performed within a year
from the making
b. A special promise to
answer for the debt,
default, miscarriage of the
other
c. An agreement made in
consideration of marriage,
other than a mutual
promise to marry
d. An agreement for the sale
of good, chattels, or things
in action, at a price not less
than 500 pesos
e. Agreement of the leasing
for a period longer than one
year, or for the sale or of an
interest therein
f.
3.
A representation as to the
credit of a third person
Both parties are incapable of giving
consent

Remedy: RATIFICATION
Void or Inexistent Contracts – Art.1409-1422
1.
2.
3.
4.
5.
6.
7.
8.
Those whose cause, object or
purpose are contrary to L, GC, M,
PP, PO
Simulated or Fictitious (absolute)
Cause or Object is non-existent
Those whose object is outside the
commerce of men
Those which contemplate
impossible service
Intention of the parties regarding
the principal obligation cannot be
ascertained
Expressly provided or declared void
by law
Direct result of a previous illegal
contract is VOID
REMEDY: cannot be ratified; In case of
Divisible Contract – the part which is valid may
be enforced; the other part which is invalid
cannot be ratified – hence void.
NATURAL OBLIGATIONS – Art. 1423
Obligations are CIVIL OR NATURAL



Natural Obligation – based on
equity and natural law
o Does not grant a right of
action to enfor performance
ACTIONS TO ENFORCE A CIVIL
OBLIGATION
o Extinctive prescription
VOLUNTARY PAYMENT
WHEN A WILL IS DECLARED VOID
because it failed to observe the
required legal solemnities and form
but one of the heirs after
settlements of debts of the
deceased pays a legacy in
compliance with the law – payment
is effective and irrevocable
2.
3.
Estoppel – Art. 1431-1439
Estoppel – an admission or representation
is redered conclusive upon person making
it, cannot be denied or disproved against the
person relying threon
4.
Estoppel is effective only between the
contracting parties and their successors-ininterest
KINDS OF ESTOPPEL
EQUITABLE ESTOPPEL –
a.
b.
By conduct (in pais)
Laches – slept on rights;
negligence or omission to
assert rights within a
reasonable time
TECHNICAL ESTOPPEL
a.
b.
By deed –
By record – they are precluded from
the truth set forth in the record
whether legislative nor judicial
APPLICATION
1.
When a person who is not the
owner sells, alienates, or delivers it,
and later the SELLER or GRANTOR
acquires the title there, such title
5.
passes by operation of law to the
buyer or grantee
When a person in representation of
another sells or alienates a thing
cannot set up his own title against
the buter or grantee
A lessee or bailee is estopeed from
asserting title to the thing leased or
received, as against the lessor or
bailor
When in a contract between third
persons concers immovable
property – one of them is misled by
a person with respect to ownership
or real right over real east, the latter
is precluded from asserting his
legal title or interest.
a. There must be fraudulent
representation or wrongful
concealment of facts
known to the party
estopped
b. The party precluded must
inted that the other should
act upon the facts
misrepresented
c. The party misled must have
been unaware of the true
facts,
d. The party defrauded must
have acted in accordance
with the misrepresentation
One who allowed another to
assume apparent ownership of
personal property for the purpose
of making any transfer cannot, if