CIVIL LAW REVIEW 2
Second Semester, AY 2021-2022
Monday, 5:00-9:00pm
Mae Acha
[email protected]Course Description: An integration of the principles in Civil Law relating to obligations and
contracts, sales, lease, quasi-contracts, credit transactions, quasi-delicts and damages.
COURSE OUTLINE1
I. OBLIGATIONS, Article (“Art.)” 1156 to 1304, The New Civil Code (“NCC”)
A. In General
1. Definition, Art. 1156
2. Elements
i. Active Subject
ii. Passive Subject
iii. Prestation or Object
iv. Efficient Cause or Juridical Tie or Vinculum Juris
3. Distinction between Natural and Civil Obligations, Arts. 1423-1430, NCC;
R.A.
No. 6809
i. As to enforceability
ii. As to basis
4. Prescription of Actions, Art. 1139-1155, NCC
Villaroel vs. Estrada, 71 Phil 140
Ansay vs. NDC, 107 Phil 997
DBP vs. Confessor, 161 SCRA 307 (1988)
Heirs of Roldan vs. Heirs of Roldan and Heirs of Magtulis, G.R. No.
202578, 27 September 2017
B. Sources of Obligations, Art. 1157
Sagrada Orden vs. NACOCO, 91 Phil 503
The Metrobank vs. Rosales and Yo Yuk To, G.R. No. 183204, 13 January 2014
1. Law, Art. 1158
2. Contracts, Arts. 1159, 1305
3. Quasi-Contracts, Arts. 1160, 2142
i. Negotiorum Gestio, Arts. 2144-2153
ii. Solutio Indebiti, Arts. 2154-2163
iii. Other Quasi-Contracts, Arts. 2164 – 2175
1 Based on the Course Outlines of Professor Eduardo A. Labitag, Atty. Crisostomo A. Uribe and Atty.
Teresita Cruz, as compiled by Atty. Viferlyn Villar.
4. Acts or omissions punished by law, Arts. 1161, 1167, 2177, NCC; Arts.
100 & 104, Revised Penal Code (“RPC”)
5. Quasi-delicts, Arts. 1162, 2176
Saludaga vs. FEU, G.R. No. 179337, 30 April
2008 People’s Car vs. Commando Security, 51
SCRA 40 Cruz vs. Tuazon & Co., 76 SCRA 543
Gutierrez Hermanos vs. Orense, 28
Phil 571 Adille vs. CA, 157 SCRA 455
Andres vs. Mantrust, 177 SCRA 618
(1989) Puyat & Sons vs. Manila, 7
SCRA 970
CBK Power Co. Ltd vs. CIR, G.R. Nos. 198729-30, 15 January
2014 Cangco vs. MRR, 38 Phil 768
Gutierrez vs. Gutierrez, 56 Phil 177
C. Compliance with Obligations, Arts. 19, 1163-1166, 1244, 1246, 1460, 442, 440
D. Kinds of Obligations
1. As to perfection and extinguishment
i. Pure, Arts. 1179, 1197
ii. Conditional, Arts. 1181-1190
iii. With a term or period, Arts. 1180, 1193-1198
HSBC vs. Sps. Broqueza, G.R. No. 178610, 17 November
2010 Pay vs. Palanca, 57 SCRA 618
Smith Bell vs. Sotelo Matti, 44 Phil 874
Chavez vs. Gonzales, 32 SCRA 547
Encarnacion vs. Baldomar, 77 Phil
470 Eleizegui vs. Lawn Tennis Club, 2
Phil 309 Philbanking vs. Lui She, 21
SCRA 53 Lim vs. People, 133 SCRA
333
Araneta, Inc. vs. Phil. Sugar Estates, 20 SCRA
330 Millare vs. Hernando, 151 SCRA 484
2. As to plurality of Prestation
i. Conjunctive
ii. Alternative, Arts. 1199 -1205
iii. Facultative, Art. 1206
Arco Pulp and Paper Co., Inc. and Santos vs. Lim, G.R. No. 206806, 25 June 2014
3. As to rights and obligations of multiple parties, Arts. 1207-1222
i. Joint
ii. Solidary, Arts. 927, 1824, 1911, 1915, 1945, 2157, 2194, 2146; Arts. 94, 121,
Family Code (“FC”); Art. 90, RPC
iii. Disjunctive
Ronquillo vs. CA, 132 SCRA 274
Malayan Insurance vs. CA, 165 SCRA
536
PNB vs. Independent Planters, 122 SCRA 113
Calang and Philtranco vs. People, G.R. No. 190696, 3 August 2010
Ruks Konsult and Construction vs. Adworld Sign and Advertising Corp and
Transworld Media Ads, G.R. No. 204866, 21 January 2015
4. As to performance of Prestation, Arts. 1221-1225, 1209-1210
i. Divisible
ii. Indivisible
iii. Joint indivisible
iv. Solidary indivisible
Sps. Lam vs. KODAK Philippines, G.R. No. 167615, 11 January 2016
5. As to the presence of an accessory undertaking in case of breach
i. With penal clause – Arts. 1226-1230
(Distinguished from Liquidated
damages)
Bachrach vs. Espiritu, 52 Phil 346
Robes-Francisco vs. CFI, 86 SCRA 59
Pamintuan vs. CA, 94 SCRA 556
Castillo vs. Security Bank, et al., G.R. No. 196118, 30 July
2014 Sps. Poon vs. Prime Savings Bank, G.R. No. 183794,
13 June 2016
E. Breach of Obligations, Art. 1170
Honrado vs. GMA Network Films, Inc., G.R. No. 204702, 14 January 2015
1. Manner of Breach
i. Fraud, Arts. 1171, 1338, 1344
ii. Negligence, Arts. 1171-1173
iii. Delay, Arts. 1169, 1165, 1786, 1788, 1896, 1942
iv. Any other manner of contravention
2. Excuses for Non-performance
i. Fortuitous event, Arts. 1174, 552, 1165, 2147, 2159
ii. Act of creditor
Cangco vs. MRR, 38 Phil 768
Telefast vs. Castro, 158 SCRA 445
Meralco vs. Ramoy, G.R. No. 158911, 4 March 2008
Mindanao Terminal vs. Phoenix Assurance, G.R. No. 162467, 8 May
2009 Jimenez vs. City of Manila, 150 SCRA 510
Nakpil & Sons vs. CA, 144 SCRA 596, 160 SCRA 334
Gilat Satellite Networks, Ltd. vs. UCPB, G.R. No. 189563, 7 April
2014 Rivera vs. Sps. Chua, G.R. No. 184458, 14 January 2015
Solar Harvest Inc. vs. Davao Corrugated Carton, Corp., G.R. No. 176868, 26
July 2010 Agcaoili vs. GSIS, 165 SCRA 1
Arrieta vs. Naric, 10 SCRA 79
Sicam vs.Jorge, G.R. No. 159617, 8 August 2007
NPC vs. CA, 161 SCRA 334
Fil-Estate vs. Sps. Ronquillo, G.R. No.185798, 13 January
2014 TMBI vs. Feb Mitsui and Manalastas, G.R. No. 194121,
11 July 2016 Sanico and Castro vs. Colipano, G.R. No.
209969, 27 September 2017
F. Remedies for Breach of Obligations, Arts. 1165-1168, 1170, 1177-1178, 1191-1192,
2236, 302, 1708, NCC; Arts. 153, 155, FC; Rule 39, Section 13, Rules of Court
1. Extra-judicial remedies
i. Expressly granted by law, Arts. 1786, 1788, 1526
ii. Stipulated
2. Judicial remedies
i. Principal remedies, Arts. 1191, 1170
ii. Subsidiary remedies, Arts. 1380, 1177
iii. Ancillary remedies, Rules of Court
Universal Food Corp. vs. CA, 33 SCRA
1 Magdalena Estate vs. Myrick, 71 Phil
344 UP vs. Delos Angeles, 35 SCRA
102 Zulueta vs. Mariano, 111 SCRA
206 Palay, Inc. vs. Clave, 124 SCRA
638 Angeles vs. Calasanz, 135 SCRA
323
Boysaw v. Interphil Promotions, 148 SCRA
635 Pilipinas Bank vs. IAC, 151 SCRA 546
Central Bank vs. CA, 139 SCRA 46
Unlad Resources Development vs. Dragon, G.R. No. 149338, 28
July 2008 Swire Realty Dev’t. Corp. vs. Jayne Yu, G.R. No. 207133,
9 March 2015 Olivarez Realty vs. Castillo, G.R. No. 196551, 9 July
2014
NCLPI vs. Lica and PROTON, G.R. No. 176986, 13 January 2016
G. Modes of Extinguishment of Obligations – Article 1231, Other modes
Saura vs. DBP, 44 SCRA 445
1. Payment or performance – Article 1232-1244, 1246-1251, 1302; RA 529, RA
8183, PD 72, Sections 31-32
NPC vs. Ibrahim, et al., G.R. No. 175863, February 18,
2015 LBP vs. Ong, G.R. No. 190755, November 24,
2010
Bognot vs. RRI Lending Corp, G.R. No. 180144, September 24, 2014
Special Forms of Payment
i. Dation in Payment – Article 1245
ii. Application of Payments – Articles 1252-1254, 1248
iii. Payment by Cession or Assignment – Article 1255
iv. Tender of Payment and Consignation – Article 1256-1261
Citizens Surety vs. CA, G.R. No. L-48958, June 28, 1988
PNB vs. DEE, Antipolo Properties, Inc. and AFP-RSBS, Inc., G.R. No. 182128,
February 19, 2014
Del Carmen vs. Spouses Sabordo, G.R. No. 187123, August 11, 2014
2. Loss of the thing due or impossibility of performance -Articles 1262 –
1269, 1189, 1174, 1165, 1268, 1942, 1979, 2147, 2159
People vs. Franklin, 39 SCRA 363
Laguna vs. Manabat, 58 SCRA 650
Occena vs. Jabson, 73 SCRA 637
3. Condonation or remission of the debt – Articles 1270-1274, 748, 749
4. Confusion or Merger of Rights – Articles 1275 – 1277, 1215, 1217
5. Compensation – Articles 1278 – 1290, 1243, 1215
Kinds of compensation
i. Legal
ii. Conventional/Facultative
iii. Judicial
6. Novation – Article 1291 to 1304,
1215 Kinds of Novation
a. As to its nature
b. As to its form
Odiamar vs. Odiamar Valencia, GR NO. 213582, June 28, 2017
II. CONTRACTS – Articles 1305-1422
A. In General
1. Definition – Article 1305
2. Elements of Contracts – Essential, Natural, Accidental
3. Tort Interference – Article 1314
Lagon vs. CA, GR # 119107, Mar. 18, 2005
B. Fundamental Characteristics of a Contract
Odyssey Park Inc. vs. CA, GR # 107992, Oct. 8,
1997 Limso vs. PNB, GR # 158622, Jan. 27, 2016
BPI Express Card Corp. vs. Armovit, GR # 163654, Oct. 8,
2014 Serra vs. CA, GR # 103338, Jan. 4, 1994
C. Classification of Contracts
Mandarin Villa vs. CA, GR # 119850, June 20, 1996
D. Stages of Contracts – Negotiation, Perfection, Performance, Consummation
Sanchez vs. Rigos, 45 SCRA 368
SM Investments Corp. (SMIC) vs. Posadas, et. al., GR # 200901, Dec. 7,
2015 Spouses Gironella vs. PNB, GR # 194515, Sept. 16, 2015
The Insular Life Assurance Company Ltd. vs. Asset Builders Corp., GR #
147410, Feb. 5, 2004
E. Essential Elements of Contracts
Boston Bank of the Phil. vs. Manalo, GR # 158149, Feb. 9,
2006 Yason vs. Arciaga, GR # 145017, Jan. 28, 2005
F. Forms of Contracts – Article 1336 to 1358
1. Any form – Oral
2. Special form
i. Validity – Articles 748, 749, 1744, 1773, 1974, 1956, 2134; Act NO. 1147,
Section 22
ii. Enforceability – Articles 1403, 1878
iii. Greater Efficacy or convenience – Article 1358
Sps. Aguinaldo vs. Torres, GR No. 225808, September
11, 2017 Lim vs. CA, GR # 102784, Feb. 28, 1996
G. Reformation of Contracts – Article 1359 to 1379
H. Interpretation of Contracts – Articles 1370 to 1379
Century Properties Inc. vs. Babiano and Concepcion, GR # 220978, July
5, 2016 Abella vs. CA, GR # 107606, June 20, 1996
I. Kinds of Contracts
1. As to Validity
a. Valid and binding
b. Valid but defective
i. Rescissible – Articles 1380 to 1389, 1191
Holdings, Inc. vs. Cagayan Electric Power and Light Co. Inc. and
Ferrochrome Phil. Inc., GR # 226213, Sept. 27, 2017
Cabaliw vs. Sadora, 64 SCRA 310
Hongkong & Shanghai Bank vs. Pauli, 161 SCRA 634
ii. Voidable – Articles 1390 to 1402, 1327 to 1328, 1330
ECE Realty & Dev. Inc. vs. Mandap, GR # 196182, Sept. 1,
2014 Poole-Blunden vs. Union Bank, GR No. 205838, 29
November 2017 Felipe vs. Heirs of Aldon, 120 SCRA 628
iii. Unenforceable – Articles 1403 to 1408, 1317, 1878
San Miguel Prop. vs. BF Homes, GR # 169343, Aug. 5,
2015 Jovan Land vs. CA, GR # 125531, Feb. 12, 1997
Yuvienco vs. Dacuycuy, 104 SCRA 668
Clarin vs. Rulona, 127 SCRA 512
Bisaya Land Transportation vs. Sanchez, 153 SCRA 532
c. Void or inexistent - Articles 1409 to 1422, 1318, 1353, 1378, 1491, 1898
a. Fullido vs. Grilli, GR # 215014, Feb. 29, 2016
Gonzalo vs. Ternate, Jr., GR # 160600, Jan. 15,
2014 Clemente vs. CA, et. al., GR # 175483, Oct.
14, 2015 Reyes vs. Asuncion, GR # 196083, Nov.
11, 2015
Spouses Santiago vs. CA, GR # 103959, Aug. 21,
1997 Nool and Almojera vs. CA, GR # 116635,
July 24, 1997 Hernandez vs. CA, 160 SCRA 821
Portugal vs. IAC, 143 SCRA 40
III. SALES (ARTS. 1458-1637)
1. Sacobia Hills Dev. Corp. vs. Ty, GR # 165889, Sept. 20, 2005
2. Ace Foods, Inc. vs. Micropacific Technologies Co. Ltd., GR # 200602, Dec. 22, 2013
3. Heirs of Sarili vs. Lagrosa, GR # 193517, Jan. 15, 2014
4. Sps. Suntay vs. Keyser Mercantile, Inc., GR # 208462, Dec. 10, 2014
5. Leong, et. al. vs. Edna See, GR # 194077, Dec. 3, 2014
6. Equitable Savings Bank vs. Palces, GR # 214752, Mar. 9, 2016
7. Gatchalian Realty Inc. vs. Angeles, GR # 202358, Nov. 27, 2013
8. Alfaro, et. al. vs. Sps. Dumalagan, et. al., GR # 186622, Jan. 22, 2014
9. Spouses Solitarios vs. Spouses Jaque, GR # 199852, Nov. 12, 2014
10. Spouses Lehner & Ludy Martires vs. Chua, GR # 174240, Mar. 20, 2013
11. Consolidated Rural Bank (Cagayan Valley) Inc. vs. CA, GR # 132161, Jan.17,
2005
12. Dino vs. Jardines, GR # 145871, Jan. 31, 2006
13. Spouses Alvaro vs. Ternida, GR # 166183, Jan. 20, 2006
14. Romero vs. CA, GR # 107202, Nov. 23, 1995
15. Loyola vs. CA, GR # 115734, Feb. 23, 2000
16. Gomez vs. CA, GR # 120747, Sept. 21, 2000.
17. CB of the Phil. vs. Bichara, GR # 131074, Mar. 27, 2000
18. Spouses Occena vs. Esponilla, GR # 156973, June 4, 2004
19. Ledesma vs. CA, GR # 86051, Sept. 1, 1992
20. Power Commercial & Ind. Corp. vs CA, GR # 119745, June 20, 1997
21. San Miguel Properties Phil. Inc. vs. Huang, GR 137290, July 31, 2000
22. Ramos vs. Sarao and Ramos, GR # 149756, Feb. 11, 2005
23. Ventura vs. Heirs of Spouses Endaya, GR # 190016, Oct.2,2013
IV. LEASE (ARTS. 1642-1731)
1. Lopez vs. Fajardo, GR # 157971, Aug. 31, 2005
2. Malayan Realty Inc. vs. Uy Han Yong, GR # 163763, Nov. 10, 2006
3. Spouses Mamaril vs. Boy Scout of the Phil., et. al., GR # 179382, Jan. 14, 2013
4. Inocencio vs. Hospicio de San Jose, GR # 201787, Sept. 25, 2013
5. Paterno vs. CA and Reyes, GR # 115763, May 29, 1997
6. Wheelers Club International Inc. vs. Bonifacio, GR # 139540, June 30, 2005
7. College Assurance Plan et. al., vs. Belfranlt Dev. Inc, GR # 155604, Nov. 22, 2007
