Republi

cActNo.
386 thees tabl i
s hmentoft hec ont rac t;or
June18,1
949 (3)Wh endemandwoul dbeus el es s ,aswh ent heobl ig orh asr ender edi t
bey ondh ispowert oper for m.
Inr ec iproc alobl ig ations ,nei t herpar tyi nc ursi ndel ayi ft heot herdoes
TheCiv
ilCodeoft
hePh
ili
ppi
nes notc ompl yori snotr eadyt oc ompl yinapr opermannerwi thwh ati s
ANACTTOORDAI NANDI NSTI
TUTETHECI
VILCODEOFTHE incumbentuponh i
m. Fr omt hemomentoneoft hepar t i
esf ulfillsh is
PHILI
PPINES oblig at i
on, del aybyt heot h erbeg ins .( 1100a)
Art. 1170. Th osewh oi nt h eper for manc eoft hei robl igat ionsar eg uilty
BOOKI V off raud, neg li
g enc e, ordel ay , andt hos ewh oi nanymannerc ontr avene
OBLIGATIONSANDCONTRACTS thet enort her eof ,ar el i
abl ef ordamag es .(1101 )
Ti
tl
e.I.-OBLI
GATI
ONS Art. 1171 .Res pons ibilityar isingf romf raudi sdemandabl ei nal l
CHAPTER1 oblig at i
ons .Anywai v erofanac tionf orf ut uref raudi sv oid. (1102a)
GENERALPROVISI
ONS Art. 1172. Res pons ibilityar isingf romneg ligenc eint heper f ormanc eof
ever yki ndofobl ig ationi sal sodemandabl e, buts uchl iabi lit
ymaybe
Art.1156.Anobl igationisaj uridicalnec essityt og ive, todoornott odo. regul at edbyt h ec our t s,ac c or dingt ot hec i
r cums tanc es .(1103)
(n) Art. 1173. Th ef aul torneg ligenc eoft h eobl igorc ons istsi nt heomi ss i
on
Art.1157.Obligat i
onsar i
sef rom: oft hatdi lig enc ewh ichi sr equi redbyt h enat ur eoft heobl igat ionand
(1)Law; corr es pondswi tht hec ircums tanc esoft heper sons ,oft h et imeandof
(2)Cont racts; thepl ac e. Wh enneg lig enc es howsbadf ait h,th epr ovis i
onsofAr tic l
es
(3)Quas i-
contracts; 1171and2201 ,par ag r aph2, sh al lappl y.
(4)Ac tsoromi ss i
onspuni shedbyl aw; and Ifth el aworc ont rac tdoesnots t atet hedi ligenc ewh ichi st obe
(5)Quas i
-deli
cts .
( 1
089a) obs er vedi nt heper for manc e, th atwh ichi sex pec t
edofag oodf at herof
Art.1158.Obligat i
onsder i
vedf roml awar enotpr esumed. Onl yt hos e af ami lys hal lber equi red. (1104a)
expres slydetermi nedinthisCodeori ns peci allawsar edemandabl e, Art. 1174. Ex cepti nc as esex pr es s lys pec ifiedbyt hel aw, orwh eni tis
ands hallber eg ul
at edbythepr ecept soft h el awwh iches tablish es other wi sedec lar edbys t i
pul at ion, orwh ent henat ureoft heobl igat ion
them; andast owh athasnotbeenf or es een,byt hepr ov is
ionsoft his requi rest heas sumpt ionofr isk, noper sons hal lber es pons iblef or
Book. (1090) thos eev ent swh ic hc oul dnotbef or es een, orwh ich,th oug hf or eseen,
Art.1159.Obligat i
onsar i
singf romc ontrac tsh avet h ef orceofl aw wer ei nev itable. (1 105 a)
betweent hecont r
ac ti
ngpar tiesands h ouldbec ompl iedwi t
hi ng ood Art. 1175 .Us urioust rans ac tionss h allbeg ov er nedbys pec iall aws .(n)
faith
.(1091 a) Art. 1176 .Th er ecei ptoft hepr inc ipalbyt h ec redi torwi th out
Art.1160.Obligat i
onsder i
vedf romquas i-
cont rac t
ss h allbes ubj ec tto reser vat ionwi t hr es pec tt ot hei nter es t,s hal lg iveris et ot h e
theprov isi
onsofCh apter1 ,TitleXVI I,oft hisBook. (
n) pres umpt iont h ats ai di nt er es th asbeenpai d.
Art.1161.Civi
lobl igati
onsar isingfromc ri
mi nalof f
ens ess hallbe Ther ec eiptofal at eri ns tal lmentofadebtwi t houtr es ervat ionast o
governedbyt hepenall aws ,subj ecttot h epr ovisionsofAr ti
cle21 77, priori ns tal lment s, sh alll ikewi ser ais et hepr es umpt iont hats uc h
andoft hepertinentpr ovi
s i
onsofCh apt er2, Pr eliminar yTi tl
e, on instal lment sh avebeenpai d. (1 110a)
HumanRel ati
ons ,andofTi tleXVI IIoft hi
sBook, reg ulatingdamag es . Art. 1177. Th ec redi tor s, af terh av ingpur suedt hepr oper tyin
(1092a) pos ses s ionoft hedebt ort os at isfyt hei rc laims ,mayex er ciseal lt he
Art.1162.Obligat i
onsder i
vedf romquas i-
delic tss hallbeg overnedby rightsandbr i
ngal lt heac tionsoft hel atterf ort hes amepur pos e, save
theprov isi
onsofCh apter2, TitleXVI Ioft hi
sBook, andbys peciall aws. thos ewh ic har ei nh er enti nh isper son; th eymayal soi mpug nt heac ts
(1093a) whic ht hedebt ormayh av edonet odef raudt h em. (111 1)
  Art. 1178. Subj ec tt ot hel aws ,al lr ight sac quiredi nv irtueofan
CHAPTER2 oblig at i
onar et rans mi ss ible, ift h er eh asbeennos tipul ationt ot h e
NATUREANDEFFECTOFOBLI GATI ONS cont rar y.( 1112)
 
Art .116 3. Ev eryper sonobl igedt og ives omet hingi sal s oobl igedt ot ake CHAPTER3
car eofi twi tht hepr operdi li
g enc eofag oodf atherofaf ami ly,unless DIFFERENTKI NDSOFOBLI GATI ONS
thel awort h es tipulat ionoft hepar tiesr equi resanot h ers t
andar dof SECTI ON1 . -Pur eandCondi tionalObl igat ions
car e.( 1094a)
Art .116 4. Th ec redi torh asar i
g htt ot hef ruitsoft het h ingf r
omt het i
me Art.1 179.Ev er yobl igat ionwh oseper f ormanc edoesnotdependupona
theobl ig at iont odel iveri tar i
s es .Howev er,h es hallac qui renor eal futur eorunc ertai nev ent ,oruponapas tev entunknownt ot h epar ties,
rightov eri tunt ilt hes ameh asbeendel iveredt oh im. (1095 ) isdemandabl eatonc e.
Art .116 5. Wh enwh ati st obedel iveredi sadet ermi nat et h i
ng ,t
h e Ever yobl igat ionwh ichc ont ainsar esol utor yc ondi ti
ons hal lal sobe
credi tor , i
naddi tiont ot h er i
gh tg rant edh imbyAr ticl
e1 1 70,may demandabl e, withoutpr ejudi cet ot heef fec tsoft heh appeni ngoft h e
compelt hedebt ort omaket hedel iv ery . event .(1113)
Ift het h ingi si ndet er mi nat eorg ener i
c ,hemayas kt hatt heobl igation Art.1 180.Wh ent h edebt orbi ndsh ims el ftopaywh enh ismeansper mi t
bec ompl i
edwi t
hatt heex pens eoft hedebt or . himt odos o, theobl ig ations hallbedeemedt obeonewi thaper iod,
Ift heobl i
g ordel ay s,orh aspr omi sedt odel ivert hes amet hingtot wo subj ectt ot hepr ovis ionsofAr ticle1 197. (n)
ormor eper sonswh odonoth av et hes amei nter est ,hes h allbe Art.1 181.Inc ondi ti
onalobl igations ,
t heac quis itionofr i
g h ts,aswel las
res pons iblef oranyf or tui tousev entunt i
lh eh asef fec tedt hedel ivery. theex ti
ng uis hmentorl os soft h oseal readyac qui red, shal ldepend
(1096 ) upont heh appeni ngoft heev entwh i
c hc ons titutest hec ondi t
ion. (11 14)
Art .116 6. Th eobl ig ationt og i
veadet er mi natet hingi nc ludest hatof Art.1 182.Wh ent h ef ul fi
llmentoft hec ondi tiondependsupont hes ole
del iver ingal litsac ces sionsandac c es sor i
es ,event houg ht heymaynot willoft h edebt or ,thec ondi tionalobl igations h allbev oid. Ifi tdepends
hav ebeenment ioned. (1097a) uponc hanc eorupont hewi llofat hi
r dper son, t heobl i
gat ions hallt ake
Art .116 7. Ifaper sonobl ig edt odos omet h i
ngf ailst odoi t,thes ame effec tinc onf or mi tywi tht h epr ovisionsoft hisCode. (1115 )
shal lbeex ecut edath isc os t. Art.1 183.Impos siblec ondi tions ,thos ec ont rar yt og oodc us tomsor
Thiss amer ul es hal lbeobs ervedi fh edoesi ti ncont rav ent ionoft he publ icpol icyandt hos epr oh ibitedbyl aws hal lannult heobl i
g at i
on
tenoroft heobl igat ion. Fur ther mor e, itmaybedec reedt h atwh ath as whic hdependsupont hem. Ift heobl igat i
oni sdi vis ibl
e, thatpar t
beenpoor lydonebeundone. (1098) thereofwh ic hi snotaf fec tedbyt hei mpos sibl eorunl awf ulc ondi tion
Art .116 8. Wh ent heobl igat ionc ons istsi nnotdoi ng, andt h eobligor shal lbev al id.
doeswh ath asbeenf orbi ddenh im, its h allalsobeundoneath is Thec onditionnott odoani mpos siblet hings hal lbec ons ider edasnot
ex pens e. (1099a) havingbeenag reedupon. (1116a)
Art .116 9. Th os eobl igedt odel iv erort odos omet hingi nc uri ndel ay Art.1 184.Th ec ondi tiont hats omeev enth appenatadet er mi nat etime
fromt h et imet heobl igeej udic iallyorex trajudi ci
al lydemandsf rom shal lext i
ng ui sht heobl igat ionass oonast h et imeex piresori fith as
themt hef ulfillmentoft hei robl igat ion. bec omei ndubi tablet hatt heev entwi llnott akepl ace.(11 1 7)
Howev er ,th edemandbyt hec redi tors h allnotbenec es sar yinor der Art.1 185.Th ec ondi tiont hats omeev entwi llnoth appenata
thatdel aymayex ist: deter mi nat et imes hal lr endert heobl igationef fec ti
vef romt he
(1)Wh ent heobl igationort hel awex pr ess l
ys odec lar e;or momentt h et imei ndi cat edh asel aps ed, ori fi th asbec omeev ident
(2)Wh enf romt henat ureandt hec irc ums tancesoft heobl igationi t thatt heev entc annotoc c ur.
appear st h att hedes ignat ionoft het imewh ent het hingi st obe Ifnot i
meh asbeenf ixed, t
h ec ondi t
ions hal lbedeemedf ul f
illedat
del iver edort hes erv i
c ei st ober ender edwasac ont rol lingmot ivefor sucht i
measmayh av epr obabl ybeenc ontempl at ed,bear ingi nmi nd
thenat ur eoft heobl i
g at ion. ( 111 8) Art. 1195 .Any thi
ngpai dordel i
v eredbef oret h ear ri
valoft heper i
od,
Art. 1186 . Th ec ondi t
ions hal lbedeemedf ul filledwh ent heobl igor theobl i
g orbei ngunawar eoft h eper i
odorbel iev ingt hatt h
eobl igation
volunt ar ilypr ev ent si tsf ul fillment .(1 1 19) hasbec omedueanddemandabl e, mayber ecov er ed, withthef ruitsand
Art. 1187. Th eef f ec t
sofac ondi tionalobl igat iont og ive, onc et he interes ts. (1126a)
condi tionh asbeenf ul filled, sh allr et roac tt ot h edayoft h e Art. 1196 .Wh enev eri nanobl igat i
onaper iodi sdes ig
nat ed, i
ti s
cons titut ionoft h eobl igat ion. Nev er t hel es s ,wh ent heobl igat i
on pres umedt oh av ebeenes tabl i
s hedf ort hebenef itofbot hthec reditor
impos esr ec iproc alpr es tat ionsupont h epar ties , thef rui tsand andt hedebt or ,unl essf romt h etenoroft h es ameorot her
inter es tsdur ingt hependenc yoft h ec ondi tions h allbedeemedt oh ave cir
c ums tanc esi ts houldappeart hatt heper i
odh asbeenes tablishedin
beenmut ual l
yc ompens at ed. Ift heobl ig at ioni suni lat er al, thedebt or favorofoneoroft heot her .(11 27)
shal lappr opr i
at et hef rui tsandi nt er es tsr ec eiv ed, unl es sf romt h e Art. 1197. Iftheobl igationdoesnotf ixaper i
od, butf romi tsnat ureand
natur eandc i
rc ums tanc esoft h eobl ig ati oni ts houl dbei nfer r
edt hat thec ircums tanc esi tc anbei nfer redt hataper iodwasi ntended, the
thei nt ent ionoft h eper s onc ons titut ingt h es amewasdi ffer ent . cour tsmayf ixth edur at i
ont h ereof .
Inobl i
g at ionst odoandnott odo, th ec our tss hal ldet er mi ne, i
neac h Thec our tss hallal sof ixt hedur at ionoft heper iodwh eni tdepends
cas e, ther et r
oac tiveef fec toft h ec ondi ti ont hath asbeenc ompl ied upont hewi lloft hedebt or .
with .(11 20) Inev er yc ase, thec ourtss h alldet ermines uchper iodasmayundert h e
Art. 1188. Th ec redi tormay , bef or et hef ul fillmentoft h ec ondi tion, cir
c ums tanc esh av ebeenpr obabl yc ont empl at edbyt h epar ties.Onc e
bringt h eappr opr iateac tionsf ort h epr es er vat ionofh isr ig ht. fix
edbyt h ec our t
s ,theper iodc annotbec h ang edbyt h em. (1128a)
Thedebt ormayr ec ov erwh atdur ingt h es amet imeh eh aspai dby Art. 1198. Thedebt ors halllos eev er yri
g htt omakeus eoft heper iod:
mis takei nc as eofas us pens ivec ondi ti
on. (1121 a) (1)Wh enaf tert heobl igat ionh asbeenc ont rac ted, hebec omes
Art. 1189 . Wh ent h ec ondi tionsh av ebeeni mpos edwi tht hei nt ent ionof insolv ent, unles sh eg ivesag uar ant yors ec urityf ort hedebt ;
sus pendi ngt heef ficac yofanobl ig at iont og ive, th ef ol lowi ngr ul es (2)Wh enh edoesnotf urni sht ot hec r
edi t
ort heg uarant iesor
shal lbeobs erv edi nc as eoft h ei mpr ov ement ,los sordet erior ationof sec uritieswh ichh eh aspr omi sed;
thet h i
ngdur i
ngt h ependenc yoft hec ondi tion: (3)Wh enbyh isownac tsh eh asi mpai reds ai dg uar antiesors ecuriti
es
(1)I fth et hingi sl os twi thoutt hef aul toft hedebt or, theobl igation aftert hei res tablis hment ,andwh ent hroug haf or tuitousev entt hey
shal lbeex ti
ng ui shed; disappear ,unles sh ei mmedi atel yg i
vesnewonesequal lysatisfactory;
(2)I ft het h i
ngi sl os tt h roug ht h ef aul toft hedebt or, hes hal lbe (4)Wh ent hedebt orv iolatesanyunder taking ,inc onsider ati
onofwh ich
oblig edt opaydamag es ; i
ti sunder s toodt hatt het hingi sl os twh eni t thec redi torag reedt oth eper iod;
per ishes ,org oesoutofc ommer c e, ordi sappear si ns uc hawayt hati t
s (5)Wh ent hedebt orat tempt st oabs cond. (1 129a)
exis tenc ei sunknownori tc annotber ec ov er ed;  
(3)Wh ent het hingdet er ior at eswi th outt h ef aul toft hedebt or ,the SECTI ON3. -Al ter nativeObl igations
impai rmenti st obebor nebyt h ec redi tor ;
(4)I fitdet erior at est hroug ht h ef aul toft h edebt or ,th ec redi tormay Art. 1199. Aper s onal ter nat ivelyboundbydi ffer entpr es tationss h all
choos ebet weent her es ciss ionoft h eobl ig at ionandi tsf ulfillment ,with compl et elyper for moneoft hem.
indemni tyf ordamag esi nei t herc as e; Thec redi torc annotbec ompel ledt or ec eivepar tofoneandpar tof
(5)I ft het h i
ngi si mpr ov edbyi tsnat ur e, orbyt ime, th ei mpr ov ement theot herunder taki ng .(1 131 )
shal linur et ot h ebenef i
toft hec redi t or; Art. 1200. Th er ig htofc hoi cebel ong st ot h edebt or ,
unl es sith asbeen
(6)I fiti si mpr ov edatt heex pens eoft hedebt or , hes h al lh av enoot her expr es slyg rant edt ot h ec r
edi tor .
rightt hant hatg rant edt ot heus uf ruc t uar y .(1 122) Thedebt ors h allh av enor i
gh ttoc h oos et hos epr estat ionswh ichar e
Art. 119 0. Wh ent h ec ondi tionsh av ef ort hei rpur pos et he impos sibl e, unl awf ulorwh ichc oul dnoth avebeent heobj ectoft h e
exting ui sh mentofanobl ig ationt og ive, t hepar t ies ,upont h e obli gation. (1132)
fulfillmentofs aidc ondi tions , sh allr et ur nt oeac hot h erwh att heyh ave Art. 1201 .Th ec h oic es hal lpr oduc enoef fectex ceptf r omt h
et imei thas
recei ved. beenc ommuni cat ed. (1 133)
Inc as eoft hel os s,det er i
or at ionori mpr ov ementoft h et hing ,the Art. 1202. Th edebt ors h al llos et h er i
g htofc h oicewh enamongt he
prov isionswh ic h, withr es pec tt ot h edebt or ,ar el aiddowni nt he pres tat ionswh er ebyh ei sal ter nat ivelybound, onlyonei spr ac ticable.
prec edi ngar ti
c les hal lbeappl iedt ot hepar tywh oi sboundt oret urn. (1134)
Asf ort heobl i
g at ionst odoandnott odo, thepr ov i
sionsoft hes ec ond Art. 1203. Ift hroug ht hec redit or '
sac tst hedebt orc annotmakeac hoice
par ag raphofAr ticle1 187s h al lbeobs erv edasr eg ardst h eef fec tof acc or dingt ot het er msoft heobl igation, thel at termayr escindt he
theex ting uishmentoft h eobl ig ation. ( 11 23) cont rac twi t hdamag es .( n)
Art. 119 1. Th epowert or es cindobl ig at ionsi si mpl iedi nr ec ipr oc alones , Art. 1204. Th ec redi tors h allh av ear i
g htt oi ndemni tyf ordamag eswh en,
inc as eoneoft h eobl igor ss houl dnotc ompl ywi thwh ati si nc umbent throug ht hef aul toft hedebt or ,al lthet hing swh ichar eal ter nat i
v ely
uponh im. theobj ec toft h eobl igat ionh av ebeenl os t,ort hec ompl ianc eoft h e
Thei nj ur edpar tymayc h oos ebet weent hef ul fillmentandt he obli gationh asbec omei mpos s i
bl e.
resc iss i
onoft h eobl ig at ion, wi tht hepay mentofdamag esi nei th er Thei ndemni tys h al lbef ixedt aki ngasabas ist hev al ueoft hel as t
cas e. Hemayal s os eekr es c iss ion, ev enaf terh eh asc h os enf ulfillment , thingwh ic hdi sappear ed, orth atoft hes ervic ewh i
chl as tbec ame
ifth el at ters h oul dbec omei mpos s ibl e. impos sibl e.
Thec our ts halldec reet h er es c issionc l
ai med, unl es st h erebej us t Damag esot hert hant hev alueoft hel as tth ingors erv icemayal sobe
caus eaut h orizingt hef ixingofaper iod. awar ded. (11 35a)
Thisi sunder stoodt obewi thoutpr ej udi c et ot her igh tsoft h irdper sons Art. 1205 .Wh ent hec hoi ceh asbeenex pr es slyg ivent ot h ec redi tor ,the
wh oh av eac quir edt h et hing ,inac cor danc ewi thAr ticles1 385and1 388 obli gations hallc eas et obeal ter nat i
v ef romt h edaywh ent h e
andt heMor tgag eLaw. (1 124) selec t i
onh asbeenc ommuni cat edt ot h edebt or .
Art. 119 2. Inc as ebot hpar t
iesh av ec ommi ttedabr eac hoft h e Unt ilt hent her es pons i
bi lityoft h edebt ors h allbeg ov er nedbyt he
oblig at i
on, t
hel iabilityoft h ef irs ti nf rac t ors hal lbeequi tabl y followi ngr ul es:
temper edbyt h ec our ts. Ifitc annotbedet er mi nedwh ic hoft hepar ties (1)I foneoft het h ing si sl os tt hroug haf ortui tousev ent , hes hall
fir
s tv iol at edt hec ont r ac t,th es ames h al lbedeemedex ting ui shed, and per for mt h eobl ig at ionbydel iver i
ngt h atwh icht h ec r
edi tors houl d
eac hs h al lbearh isowndamag es .( n) choos ef romamongt her emai nder ,ort h atwh ichr emai nsi fonl yone
  subs is t
s ;
SECTI ON2. -Obl igat ionswi thaPer iod (2)I ft hel os sofoneoft het hing soc cur st hroug ht h
ef aul toft hedebt or,
thec r edi tormayc lai manyoft hos es ubs isting ,ort hepr ic eoft hat
Art.1193.Obl igationsf orwh os ef ulf i
ll
mentadayc ertainhasbeenf i
xed, wh i
c h, throug ht h ef aul toft hef or mer ,hasdi sappear ed, wi t
har i
g htto
shallbedemandabl eonl ywh ent hatdayc omes . damag es ;
Obligationswi thar esolutoryper iodt akeeffec tatonce,buttermi nate (3)I fal lt het hing sar el os tth roug hth ef aul toft hedebt or ,thec hoice
uponar r i
valoft hedayc er t
ai n. byt hec redi tors h al lf allupont h epr iceofanyoneoft h em, als owi th
Adayc ertainisunder stoodt obet h atwhi
chmus tnecessari
lycome, indemni t yf ordamag es.
althoughi tmaynotbeknownwh en. Thes amer ul ess h al lbeappl iedt oobl i
g at i
onst odoornott odoi n
Iftheunc ertaint yconsi s
tsinwh et h erthedaywi llcomeornot ,t
h e cas eone, someoral loft hepr es tat i
onss houl dbec omei mpos s
ibl e.
obli
g ationisc ondi t
ional ,andi ts h allberegulatedbyt herulesoft he (1136 a)
precedingSec tion.(1125a) Art. 1206 .Wh enonl yonepr est at ionh asbeenag reedupon, butt h e
Art.1194.Inc aseofl oss,det erior at i
onorimpr ovementoft hething obli gormayr enderanot h erins ubs t i
tut ion, theobl igat ioni sc alled
beforet hear rivaloft hedayc er tai n,th
erulesi nAr t
icl
e1 1
89s hallbe fac ultat ive.
obser v
ed. (n) Thel os sordet er ior at ionoft h et hingi nt endedasas ubs t i
tut e,th rough
thenegli
genceoftheobli
gor,
doesnotr enderhi
ml iabl
e.Butoncet
he hi
ms el
fofal ldefenseswhichar ederiv
edf r
omt h
enat ureofthe
subst
itut
ionhasbeenmade, t
h eobli
g orisli
ableforthelossoft
he obli
gationandoft hosewhichar epersonaltoh i
m, orpertai
ntoh i
sown
subst
itut
eonac countofhi
sdelay,neg l
igenceorfraud.(
n) share.
Wi threspecttothosewh ic
hper s
onallybelongtot heoth
er s
,he
  mayav ailhi
ms elfth
ereofonl yasregardsthatpartoft h
edebtf or
SECTION4. -J
ointandSol
idaryObligations whic
ht helatterarerespons i
ble.(11
48a)
 
Art.1 207. Th ec onc ur renc eoft woormor ec redi torsoroft woormor e SECTION5 .
-Divisi
bleandI ndivi
sibl
eObl i
gations
debt or si noneandt h es ameobl igat iondoesnoti mpl yt hateac honeof
thef or merh asar igh ttodemand, ort h ateac honeoft h el at teri s Art. 1223. Th edi visibilityori ndiv i
sibilityofth eth i
ngst hatar et he
boundt or ender ,ent irec ompl ianc ewi tht hepr es tat i
on. Th er ei sa objec tofobl i
gat i
onsi nwh icht herei sonl yonedebt orandonl yone
solidar yl iabi lityonl ywh ent heobl ig at ionex pr es slys os tat es , orwh en credi tordoesnotal terormodi fyth epr ovisionsofCh apter2oft hi
s
thel awort h enat ur eoft heobl ig ationr equi r ess olidar ity.( 1137a) Title. (
1 149)
Art.1 208. Iff romt hel aw, ort h enat ur eort h ewor di ngoft heobl igat i
ons Art. 1224. Aj ointi ndi visibleobl igationg i
vesr isetoi ndemni tyf or
towh icht h epr ec edi ngar ticler ef er st hec ont rar ydoesnotappear , th
e damag esf romt het imeany oneoft hedebt orsdoesnotc ompl ywithh is
credi tordebts hal lbepr es umedt obedi v idedi nt oasmanys h aresas under taking .Thedebt or swh omayh av ebeenr eadyt of ulfil
lthei r
therear ec redi tor sordebt or s ,t hec redi tsordebt sbei ngc ons i
der ed promi sess h allnotc ont ributet ot hei ndemni tybey ondt he
distinc tf romoneanot her ,subj ec tt ot heRul esofCour tg ov er ningt h e corr espondi ngpor tionoft hepr i
ceoft h ethi
ngoroft hev alueoft he
mul tipli cityofs ui ts .( 1138a) serv icei nwh i
cht heobl i
g ati
onc onsist s.(11
50)
Art.1 209. Ift h edi vis ioni si mpos sibl e, th er ig htoft h ec r edi tor smaybe Art. 1225 .Fort hepur pos esoft hepr ec edingar ti
c l
es ,obligationst og i
ve
prejudi c edonl ybyt hei rc ol lec tiveac t s, andt h edebtc anbeenf or ced defini tet hingsandt h osewh i
char enots uscept i
bleofpar t i
al
onlybypr oc eedi ngag ains tal lt hedebt or s .Ifoneoft h el at ters houl d per formanc es h allbedeemedt obei ndi vis
ible.
bei ns ol vent , th eot h er ss hal lnotbel i
abl ef orh iss h ar e. (11 39 ) Wh ent h eobl i
gat i
onh asf oritsobj ec tt heexec utionofac ertain
Art.1 21 0.Th ei ndi visi bilityofanobl ig at iondoesnotnec es sar ilyg ive numberofday sofwor k,theac compl ishmentofwor kbymet r
icaluni ts,
riset os oli dar it y.Nordoess olidar ityofi ts el fi mpl yi ndi v isibi li
ty.( n) oranal og oust h i
ng swh i
chbyt h eirnat ur eares us ceptibleofpar ti
al
Art.1 21 1.Sol idar itymayex istal th oug ht h ec redi tor sandt h edebt or s per formanc e, itsh allbedi visible.
maynotbeboundi nt h es amemannerandbyt hes ameper iodsand Howev er ,ev ent houg ht heobj ec tors er vi
cemaybeph ysicallydi vi
sible,
condi tions .(1 1 40) anobl igationi si ndi vis i
bleifs opr ov idedbyl awori ntendedbyt he
Art.1 21 2.Eac honeoft hes olidar yc redi t or smaydowh at ev ermaybe par ties .
usef ult ot h eot her s, butnotany th ingwh ic hmaybepr ej udi c ialt ot he Inobl i
g ationsnott odo, divisibili
tyori ndiv
isibilit
ys hallbedet ermi ned
latter .(1 141 a) byt hec harac teroft h epr estat i
oni neac hpar ticularc ase. (
11 51a)
Art.1 21 3.As ol idar yc redi torc annotas s ig nh isr igh tswi thoutt he  
cons entoft h eot h er s.(n) SECTI ON6 .-Obl i
g at i
onswi thaPenalCl ause
Art.1 21 4.Th edebt ormaypayanyoneoft h es ol idar yc r edi tor s; buti f
anydemand, judi c ialorex traj udi cial , hasbeenmadebyoneoft hem, Art.1 226 .Inobl igationswi thapenalc laus e,thepenal tys hall
pay ments houl dbemadet oh im. ( 1142a) subs titutet hei ndemni t
yf ordamag esandt hepay mentofi nt eres tsin
Art.1 21 5.Nov at ion, compens at ion, c onf us ionorr emi ssionoft h edebt , caseofnonc ompl ianc e,iftherei snos ti
pul ationt ot hec ontr ary.
madebyanyoft h es ol i
dar yc redi tor sorwi t hanyoft h es olidar y Nev er theles s,damag ess hallbepai difth eobl i
gorr efus est opayt he
debt or s, sh al lex ting ui sht heobl i
g at ion, wi th outpr ejudi c et ot he penal tyori sg uil
tyoff raudint hef ulf
ill
mentoft heobl igation.
prov isionsofAr ticle1 21 9. Thepenal tymaybeenf orcedonl ywh eni tisdemandabl ei nac cor dance
Thec redi torwh omayh av eex ec ut edanyoft h eseac ts, aswel lash e witht h epr ovisionsoft hisCode. (1152a)
whoc ol lec tst hedebt , shal lbel iabl et ot heot her sf ort hes h ar ei nt he Art.1 227. Thedebt orc annotex empth ims elffromt heper formanc eof
oblig ationc or res pondi ngt ot hem. ( 11 43) theobl igat i
onbypay ingt hepenal ty,
savei nt hec asewh eret hisr i
ght
Art.1 21 6.Th ec redi tormaypr oc eedag ai ns tanyoneoft h es olidar y hasbeenex pres slyr es ervedf orh i
m. Neith ercant h ecredi tordemand
debt or sors omeoral loft hems imul taneous ly.Th edemandmade thef ul fi
llmentoft heobl igat
ionandt hes at i
sfactionoft hepenal tyat
agai ns toneoft hems hallnotbeanobs tac l et ot hos ewh i
c hmay thes amet ime, unles st h i
sr i
ghth asbeenc lear l
yg rantedh im. Howev er,
subs equent l
ybedi rec tedag ai ns tt h eot h er s ,s ol ongast h edebth as ifaf tert hec reditorh asdec i
dedt orequiret hef ulfi
llmentoft h e
notbeenf ul lyc ol lec ted. (1144a) oblig ation, theper for manc ether eofshoul dbec omei mpos s iblewi t
hout
Art.1 21 7.Pay mentmadebyoneoft h es ol idar ydebt or sex ting uishest h
e hisf aul t,thepenal tymaybeenf orced.(11 53a)
oblig ation. Ift woormor es ol idar ydebt or sof fert opay , th ec redi t
or Art.1 228. Proofofac tualdamag ess uff
er edbyt hec reditori snot
mayc hoos ewh ichof f ert oac cept . nec es saryi nor dert hatt hepenal tymaybedemanded. (n)
Hewh omadet h epay mentmayc lai mf romh isc o-debt or sonl yt hes hare Art.1 229. Thej udg es h allequitabl yreducet hepenal tywh ent he
whic hc or res pondst oeac h, wi tht h ei nter es tf ort hepay mental ready princ ipalobl igationh asbeenpar t
lyorirreg ularlycompl i
edwi thbyt he
made. Ift hepay menti smadebef or et h edebti sdue, noi nter es tf ort he debt or .Eveni ft h
er eh asbeennoper f
ormanc e,thepenal tymayal sobe
inter veni ngper iodmaybedemanded. reduc edbyt hec ourt si fitisiniquitousorunc ons ci
onabl e. (11 54a)
Wh enoneoft h es ol idar ydebt or sc annot , bec aus eofh i
si ns olv enc y, Art.1 230. Thenul lityoft hepenalc lausedoesnotc arrywi t
hi tth atof
reimbur seh iss har et ot h edebt orpay ingt heobl igat ion, s uc hs hare thepr incipalobl igati on.
shal lbebor nebyal lh isc o- debt or s, inpr opor ti
ont ot hedebtofeac h. Thenul l
ityoft hepr inc i
palobl igationcar ri
eswi thi tthatoft h epenal
(1145 a) claus e. (1155)
Art.1 21 8.Pay mentbyas ol i
dar ydebt ors h al lnotent i
t leh i mt o  
reimbur sementf romh i
sc o-debt orsi fs uc hpay menti smadeaf tert he CHAPTER4
oblig ationh aspr es cribedorbec omei lleg al . (n) EXTI NGUI SHMENTOFOBLI GATI ONS
Art.1 21 9.Th er emi ss ionmadebyt hec redi t oroft hes har ewh ic haf fects GENERALPROVI SIONS
oneoft h es ol idar ydebt or sdoesnotr el eas et hel at terf romh is
respons i
bi lityt owar dst h ec o- debt or s ,inc as et hedebth adbeent ot ally Art.1
231 .Obligationsareex ti
nguished:
paidbyany oneoft hembef or et h er emi ss ionwasef fec ted. ( 1146 a) (1)Bypay mentorper formance:
Art.1 220. Th er emi s sionoft h ewh oleobl igat ion, obt ai nedbyoneoft he (2)Byth elos soft h
et hi
ngdue:
solidar ydebt or s, doesnotent itleh imt or ei mbur sementf romh isc o- (3)Byth econdonat i
onorr emissionoft hedebt ;
debt or s. (n) (4)Byth econf usionormer geroft herightsofc r
editoranddebtor
;
Art.1 221 .I ft het h ingh asbeenl os tori ft h epr es tationh asbec ome (5)Byc ompens ati
on;
impos sibl ewi t houtt hef aul toft hes ol idar ydebt or s, theobl igat ion (6)Bynov ation.
shal lbeex ting ui sh ed. Otherc ausesofex ti
nguishmentofobl igations,suchasannulment
,
Ifther ewasf aul tont hepar tofanyoneoft h em, al ls hal lbe resci
ssion,ful f
ill
mentofar esolutorycondi t
ion,andprescr
ipti
on,ar
e
respons i
bl et ot hec r edit or, fort h epr ic eandt hepay mentofdamag es governedel sewh ereinthisCode. (11
5 6
a)
andi nter es t
, wi th outpr ejudi cet ot h ei rac t ionag ains tt h eg uiltyor  
neg ligentdebt or . SECTION1 .-Pay mentorPer formanc e
Ifthr oug haf or tuit ousev ent , th et hi ngi sl os tort heper for manc eh as
bec omei mpos sibl eaf teroneoft h es ol idar ydebt or sh asi nc ur redi n Art.
1 232.
Paymentmeansnotonlythedel
iveryofmoneybutal
sothe
delayt h roug ht h ej udi cialorex t rajudi cialdemanduponh imbyt he performance,i
nanyothermanner,
ofanobl i
gati
on.
(n)
credi tor ,th epr ov isionsoft hepr ec edi ngpar ag raphs hal lappl y. (1147a) Art.
1 233.
Adebts h
allnotbeunder
stoodtohavebeenpaidunl
essthe
Art.1 222. As ol idar ydebt ormay ,inac tionsf iledbyt hec redi tor ,avai l thi
ngors erv
iceinwhi
chtheobli
gati
onconsist
shasbeencomplet
ely
del iver edorr ender ed, ast h ec as emaybe. (11 57) unlessther ei
sanag reementt othec ontrar
y.(n)
Art. 1234. Ift h eobl igat ionh asbeens ubs tant ial lyper for medi ng ood Art.125
1 .Payments hallbemadei nthepl acedesignatedinthe
faith ,th eobl ig ormayr ec ov erast h oug ht her eh adbeenas tric tand oblig
ation.
compl et ef ul fillment ,les sdamag ess uf fer edbyt heobl igee. ( n) Therebei ngnoex presss ti
pulati
onandi fth
eunder takingistodeli
ver
Art. 1235 .Wh ent h eobl i
g eeac cept st h eper for manc e, knowi ngi ts adet er
mi natething,thepay ments h
al lbemadewh ereverthethi
ng
incompl et enes sori rr eg ul ar ity, andwi th outex pres singanypr ot es tor mightbeatt h
emomentt heobligati
onwasc onst
ituted.
objec t ion, th eobl igat ioni sdeemedf ul lyc ompl iedwi th .(n) Inanyot hercaset heplac eofpay ments hal
lbet h
edomi ci
leofthe
Art. 1236 .Th ec r edi tori snotboundt oac ceptpay mentorper f ormanc e debtor.
byat h irdper s onwh oh asnoi nter es ti nt h ef ul fill
mentoft heobl igation, Ifthedebt orchangesh isdomicil
ei nbadf aithorafterh ehasinc
urred
unles st her ei sas tipul at iont ot hec ont rar y. indelay,theaddi t
ionalex pensess h
al lbebornebyh im.
Wh oev erpay sf oranot hermaydemandf romt hedebt orwh ath eh as Thesepr ovisi
onsar ewit h
outprejudicet ovenueundert heRulesof
pai d, ex ceptt hati fh epai dwi th outt heknowl edg eorag ai ns tt hewi llof Court.(1171a)
thedebt or , hec anr ec ov eronl yi ns of arast h epay menth asbeen  
benef icialt ot hedebt or .( 115 8a) SUBSECTI ON1 .
-Appl icati
onofPay ment s
Art. 1237. Wh oev erpay sonbeh al foft hedebt orwi t
h outt heknowl edg e
orag ai ns tt hewi lloft h el at t er ,c annotc ompelt hec r edi tort o Art. 125 2.Hewh oh asv ariousdebt soft h es ameki ndinf avorofoneand
subr og at eh imi nh isr igh ts, suc hast hos ear isingf romamor tgag e, thes amec reditor,maydec l
ar eatt het i
meofmaki ngth epayment ,
to
guar ant y,orpenal ty .(1 15 9a) whic hoft hemt hes amemus tbeappl ied. Unl esst hepar t
iesso
Art. 1238. Pay mentmadebyat h irdper s onwh odoesnoti nt endt obe stipul ate, orwh ent heappl i
cationofpay menti smadebyt hepar tyfor
reimbur sedbyt hedebt ori sdeemedt obeadonat ion, wh ichr equi res whos ebenef itt
h et ermh asbeenc ons tituted, applications h
al lnotbe
thedebt or 'sc ons ent .Butt h epay menti si nanyc asev al idast ot h e madeast odebt swh ichar enoty etdue.
credi torwh oh asac cept edi t. (n) Ifth edebt orac cept sfromt hec reditorar ec eiptinwh i
c han
Art. 1239. Inobl igat ionst og iv e, pay mentmadebyonewh odoesnot appl icat ionoft hepay menti smade, t hef or merc annotc ompl ainoft h
e
hav et h ef reedi spos aloft het hingdueandc apac ityt oal ienat ei ts hal
l same, unlesst herei sac ausef orinv al idatingt h econtract.(1172a)
notbev alid, wit houtpr ej udi cet ot h epr ov isionsofAr tic l
e1 427under Art. 125 3.Ifthedebtpr oducesi nter es t,pay mentoft hepr inci
pals hall
theTi tleon" Nat uralObl ig at ions .
"( 1 16 0a) notbedeemedt oh avebeenmadeunt i
lt hei nteres t
sh avebeen
Art. 1240. Pay ments h al lbemadet ot heper soni nwh os ef av ort he cov ered. (11
73)
oblig at ionh asbeenc ons titut ed, orh iss uc ces sori ni nt er es t,orany Art. 125 4.Wh ent hepay mentc annotbeappl iedi nac cordancewi ththe
per sonaut hor iz edt or ec ei vei t.( 11 62a) prec edi ngr ules,ori fappl ic
at i
onc annotbei nferredfromot her
Art. 1241 .Pay mentt oaper sonwh oi si nc apac itat edt oadmi ni sterh is circums tanc es,thedebtwh i
chi smos toner oust ot hedebt or
,among
proper t ys hal lbev alidi fh eh askeptt h et hingdel iver ed, ori ns of aras thos edue, s
h al
lbedeemedt oh avebeens at isfi
ed.
thepay menth asbeenbenef ic i
alt oh im. Ifth edebt sduear eoft hesamenat ur eandbur den, t
hepay ments hal
l
Pay mentmadet oat h irdper s ons h allal sobev alidi ns ofarasi th as beappl iedt oalloft h empr opor tionat ely.(11 74a)
redoundedt ot h ebenef itoft h ec redi tor .Suc hbenef i
tt ot hec redi tor  
neednotbepr ov edi nt hef ol lowi ngc as es: SUBSECTI ON2. -Pay mentbyCes sion
(1)I faf tert h epay ment , th et h irdper sonac qui rest hec redi tor 'sr ights;
(2)I ft h ec redi torr at ifiest h epay mentt ot h et hirdper son; Art.1255
.Thedebt ormayc edeoras si
gnh i
spr opertytohisc r
editor
sin
(3)I fbyt hec redi tor '
sc onduc t,t hedebt orh asbeenl edt obel iev et hat paymentofh isdebt s
.Thisces si
on,unlesst herei sst
ipulati
ont othe
thet h irdper sonh adaut h or ityt or ec eiv et hepay ment . (116 3a) contrary
,shallonlyreleaseth edebtorf romr esponsibil
ityforthenet
Art. 1242. Pay mentmadei ng oodf ai tht oanyper soni npos ses s i
onof proceedsoft hethingassigned.Theag reement swhich,
ont heeffectof
thec redi ts h al lr el eas et h edebt or . (11 64) thecession,aremadebet weent hedebt orandh iscr
editorsshallbe
Art. 1243. Pay mentmadet ot h ec redi torbyt h edebt oraf tert h el at ter governedbys peciallaws.(1175a)
hasbeenj udi c iallyor der edt or et ai nt h edebts hallnotbev al id. (11 65)  
Art. 1244. Th edebt orofat h ingc annotc ompelt hec redi tort or ec ei vea SUBSECTI ON3. -TenderofPay mentandCons i
g nat
ion
differ entone, al thoug ht hel at termaybeoft hes amev al ueas ,ormor e
valuabl et hant hatwh ic hi sdue. Art. 125 6.Ifth ec redi tort owh omt enderofpay menth asbeenmade
Inobl igat ionst odoornott odo, anac torf orbear anc ec annotbe refus eswi thoutj us tc aus et oac c epti t,th edebt ors hallber eleas ed
subs tit utedbyanot herac torf or bear anc eag ai nstt heobl igee' swi ll. fromr es pons ibi l
it ybyt hec ons ignat ionoft het h i
ngors umdue.
(116 6a) Cons i
g nat i
onal ones hallpr oduc et hes ameef f ec tint hef ollowi ng
Art. 1245 .Dat ioni npay ment , wh er ebypr oper tyi sal ienat edt ot he cas es :
credi tori ns at isfac t ionofadebti nmoney , sh allbeg ov ernedbyt hel aw (1)Wh ent hec redi t ori sabs entorunknown, ordoesnotappearatt he
ofs al es .(n) plac eofpay ment ;
Art. 1246 .Wh ent h eobl i
g at ionc ons is tsi nt hedel iveryofan (2)Wh enh ei si nc apac i
tatedt or ec eiv et hepay mentatt het imei tis
indet er mi nat eorg ener ict hing , wh os equal ityandc irc ums tanc esh av e due;
notbeens tat ed, th ec redi torc annotdemandat hingofs uper iorqual it
y. (3)Wh en, wi thoutj us tc aus e, her ef us est og ivear ec eipt;
Nei th erc ant h edebt ordel iverat h ingofi nfer iorqual ity.Th epur pos e (4)Wh ent woormor eper s onsc l
ai mt hes amer igh ttoc ol l
ec t;
oft heobl igat ionandot h erc ir cums tanc ess hal lbet akeni nt o (5)Wh ent het itleoft h eobl igat i
onh asbeenl os t
. (1176 a)
cons ider at ion. ( 116 7a) Art. 125 7.Inor dert hatt hec onsignat ionoft het hingduemayr eleas e
Art. 1247. Unl es si ti sot h er wi ses tipul at ed, theex traj udi cialex pens es theobl igor ,i
tmus tf irstbeannounc edt ot h eper sonsi nteres tedi nthe
requi redbyt h epay ments hal lbef ort heac c ountoft h edebt or .Wi th fulfillmentoft h eobl i
g ation.
reg ardt oj udi cialc os ts, theRul esofCour ts h allg over n.(1 168a) Thec ons ignat ions h allbei nef fec tuali fi ti snotmades tri
c t
lyi n
Art. 1248. Unl es st h er ei sanex pr es ss tipul at iont ot h atef fec t, the cons onanc ewi t ht hepr ovis i
onswh ichr eg ul atepay ment .(1177)
credi torc annotbec ompel l
edpar tial lyt or ec eivet h epr es tat ionsi n Art. 125 8.Cons ig nat ions hal lbemadebydepos itingt het hingsdueat
wh i
c ht h eobl i
g at ionc ons i sts. Nei t hermayt hedebt orber equi redt o thedi s pos alofj udi c ialaut hority, bef orewh omt het enderofpay ment
makepar tialpay ment s. shal lbepr ov ed, inapr operc as e, andt heannounc ementoft he
Howev er ,wh ent h edebti si npar tl iqui dat edandi npar tunl iqui dat ed, cons ignat ioni not h erc ases .
thec redi tormaydemandandt hedebt ormayef fec tt hepay mentoft he Thec ons ignat ionh av ingbeenmade, thei nt eres tedpar t i
ess hallal so
formerwi th outwai tingf ort hel iqui dat ionoft hel atter .(11 69a) benot ifiedt her eof .(1 178)
Art. 1249. Th epay mentofdebt si nmoneys h allbemadei nt h ec ur renc y Art. 125 9.Th eex pens esofc ons ignat ion, wh enpr oper lymade, s hallbe
stipul at ed, andi fiti snotpos s iblet odel ivers uc hc ur renc y,th eni nth e char gedag ains tt hec redit or .
(1 178)
curr enc ywh ichi sl eg alt enderi nt hePh ilippi nes . Art. 126 0.Onc et hec ons i
gnat i
onh asbeendul ymade, thedebt ormay
Thedel iver yofpr omi s sor ynot espay abl et oor der ,orbi llsofex ch ang e as kt hej udg et oor dert hec anc el lationoft heobl ig ation.
orot hermer c ant iledoc ument ss hal lpr oduc et h eef fec tofpay ment Bef oret hec redi torh asac cept edt hec ons ignat ion, orbef or eaj udicial
onlywh ent heyh av ebeenc as h ed, orwh ent h roug ht hef aul toft h e dec larat iont hatt hec onsig nationh asbeenpr oper lymade, thedebt or
credi tort heyh av ebeeni mpai r ed. maywi t hdrawt h et h ingort h es umdepos it ed, al l
owi ngt heobl igat i
ont o
Int hemeant ime, th eac t ionder ivedf romt heor iginalobl igat ions h all remai ni nf orce. (1 180)
beh eldi nt h eabey anc e. (1 170) Art. 126 1.If,thec ons ignat ionh av ingbeenmade, th ec redi tors hould
Art. 125 0. Inc as eanex tr aor di nar yi nf lat ionordef lat ionoft hec ur rency aut hori zet hedebt ort owi th drawt hes ame, hes h alll oseev ery
stipul at eds h oul ds uper vene, th ev al ueoft hec urrenc yatt het imeof pref erenc ewh ic hh emayh av eov ert h et hing .Th ec o-debt or s,
thees t abl ish mentoft heobl ig at ions hal lbet h ebas isofpay ment , guar ant or sands ur et iess h allber eleas ed. (11 81a)
  (2)Th atbot hdebt sc ons is tinas umofmoney ,ori fthet h i
ng sduear e
SECTI
ON2.
-Los
soft
heTh
ingDue cons umabl e, theybeoft hes ameki nd, andal s ooft hes amequal ityi f
thel at terh asbeens t at ed;
Art. 126 2.Anobl igat ionwh ichc ons is
tsi nt h edel iver yofadet er mi nate (3)Th att het wodebt sbedue;
things hallbeex ting uis hedi fitshoul dbel os tordes troyedwi thoutt he (4)Th att heybel iqui dat edanddemandabl e;
faul toft h edebt or ,andbef oreh eh asi nc urr edi ndel ay . (5)Th atov ernei t heroft hemt her ebeanyr et ent ionorc ontr ov er sy,
Wh enbyl awors t
ipul at i
on, theobl igorisl i
abl eev enf orf ortui tous commenc edbyt hirdper sonsandc ommuni cat edi nduet imet ot he
event s ,thel os soft het hingdoesnotex ting uisht heobl igat i
on, andh e debt or .(1196 )
shal lber es pons ibl ef ordamag es.Th es amer uleappl i
eswh ent he Art.1 280. Not with standi ngt hepr ov is i
onsoft hepr ecedi ngar ticle, the
nat ureoft heobl ig at ionr equi rest heas sumpt i
onofr is k.( 1
1 82a) guar ant ormays etupc ompens at ionasr eg ar dswh att hec redi tormay
Art. 126 3.Inanobl ig at i
ont odel i
verag ener ict hi
ng ,th el ossor owet h epr inc ipaldebt or .(1 197)
des truc tionofany th ingoft h es ameki nddoesnotex tingui sht he Art.1 281 .Compens at i
onmaybet ot alorpar t ial. Wh ent h et wodebt sare
oblig ation. (n) ofth es ameamount , th er ei sat otalc ompens at ion. (n)
Art. 126 4.Th ec our tss halldet ermi newh eth er ,undert h ec ir
c ums tanc es, Art.1 282. Th epar t i
esmayag r eeupont h ec ompens ationofdebt swh ich
thepar ti
all os soft heobj ec toft heobl igat ioni ss oi mpor tantast o arenoty etdue. (n)
ex ti
ng ui shth eobl ig at ion. (n) Art.1 283. Ifoneoft hepar t iest oas uitov eranobl igat i
onh asac laim
Art. 126 5.Wh enev ert h et hingi sl ostint hepos ses sionoft hedebt or,it fordamag esag ai ns tt h eot h er ,th ef ormermays eti toffbypr ov ingh i
s
shal lbepr es umedt h att hel osswasduet oh isfaul t,unl es st h erei s rightt os ai ddamag esandt heamountt her eof .(n)
prooft ot hec ontrar y ,andwi thoutpr ejudi cet ot hepr ov isionsofar ti
c l
e Art.1 284. Wh enoneorbot hdebt sar er es ciss ibleorv oidabl e, th eymay
1165 .Th ispr es umpt iondoesnotappl yinc as eofear th quake, flood, bec ompens at edag ains teac hot herbef or et heyar ejudi cially
stor m, orot h ernat ur alc al ami ty.(1183a) rescindedorav oi ded. ( n)
Art. 126 6.Th edebt ori nobl i
g ationst odos hal lalsober el eas edwh en Art.1 285 .Th edebt orwh oh asc ons ent edt ot h eas signmentofr ig hts
thepr es tationbec omesl eg allyorph ysical l
yi mpos siblewi th outt h e madebyac redi tori nf av orofat h i
rdper son, cannots etupag ai nstt he
faul toft h eobl i
gor .( 1184a) assig neet hec ompens at ionwh ichwoul dper t aint oh imag ai ns tt he
Art. 126 7.Wh ent hes er vi
c eh asbec omes odi ffi
cultast obemani f estly assig nor ,unl es st heas s ignorwasnot ifiedbyt hedebt oratt h et imeh e
bey ondt hec ontempl ationoft hepar ties ,th eobl igormayal s obe gaveh isc ons ent, th ath er es er vedh isr ig htt ot h ec ompens at ion.
releas edt her efrom, inwh oleori npar t.(n) Ifthec redi torc ommuni cat edt h ec es siont oh imbutt h edebt ordi dnot
Art. 126 8.Wh ent hedebtofat hingc ertai nanddet ermi nat epr oc eeds cons entt her eto, th el at termays etupt hec ompens at i
onofdebt s
fromac riminalof fens e,t hedebt ors hallnotbeex empt edf r omt h e previoust ot hec es s i
on, butnotofs ubs equentones .
pay mentofi tspr i
c e, wh at ev ermaybet h ec aus efort h el os s, unles st he Iftheas signmenti smadewi th outt heknowl edg eoft hedebt or ,h emay
thingh avingbeenof f eredbyh imt ot heper sonwh os h oul dr ec eivei t
, setupt hec ompens at ionofal lc redi tspr iort ot h es ameandal s ol ater
thel at terr ef usedwi t houtj us tifi
cationt oac cepti t.(11 85 ) onesunt ilh eh adknowl edg eoft h eas signment . (1 198a)
Art. 126 9.Th eobl ig at ionh av ingbeenex ting ui shedbyt h el ossoft h e Art.1 286 .Compens at iont akespl ac ebyoper at ionofl aw, ev ent houg h
thing ,thec redi t
ors hal lh av eal lther ightsofac tionwh icht h edebt or thedebt smaybepay abl eatdi ffer entpl ac es , butt her es hal lbean
mayh aveag ai nstt hirdper sonsbyr eas onoft hel os s.(1 186) indemni tyf orex pens esofex ch ang eort rans por t ationt ot hepl ac eof
  payment .(1 199a)
SECTI ON3. -Condonat ionorRemi ssionoft heDebt Art.1 287. Compens at ions h al lnotbepr operwh enoneoft h edebt s
arisesf romadepos i
t umorf r omt h eobl igat ionsofadepos itar yorofa
Art.1270.Condonat i
onorr emi ssioni ses sentiallygr atuit
ous , and baileei nc ommodat um.
requirest heac c ept anc ebyt heobl igor .Itmaybemadeex pr es slyor Neit herc anc ompens at ionbes etupag ains tac redi torwh oh asac laim
impliedly. fors uppor tduebyg r at uitoust itle, wi thoutpr ejudi cet ot hepr ov isions
Oneandt heot herki nds hallbes ubjec tt ot heruleswh ichgov er n ofpar ag raph2ofAr tic le301 .(1200a)
inoffi
ciousdonat ions .Ex pres scondonat ions hall,fur t
hermor e, comply Art.1 288. Nei thers hal lt h er ebec ompens at ioni foneoft hedebt s
withthef ormsofdonat ion. (1187) cons istsi nc i
v i
ll iabi lityar is ingf romapenalof f ens e.(n)
Art.1271.Th edel i
v eryofapr ivatedoc umentev idenc i
ngac r edi t
, made Art.1 289. Ifaper s ons h oul dh av eag ains th ims ev eraldebt swh i
c har e
voluntarilybyt hec redi tort ot hedebt or, impliest her enunci ationoft he suscept ibleofc ompens at ion, ther ul esont h eappl icationofpay ment s
actionwh icht hef or merh adag ainstt h el atter. shallappl yt ot heor deroft hec ompens ation. (1 201 )
Ifinor dert onul lifyt hiswai v
eri tsh ouldbec lai
medt obei nof f i
cious, Art.1 290. Wh enal lt her equi sit esment ionedi nAr ticle1 279ar epr es ent,
thedebt orandh ish eir smayuph oldi tbypr ov i
ngt hatt hedel iv eryof compens at iont akesef fec tbyoper at ionofl aw, andex tingui sh esbot h
thedoc umentwasmadei nv i
rtueofpay mentoft hedebt .(1
1 88) debt st ot hec onc ur r entamount , event h oug ht hec reditor sanddebt ors
Art.1272.Wh enev ert hepr ivatedoc umenti nwh i
c hth edebtappear sis arenotawar eoft hec ompens at ion. (1202a)
foundi nth epos s es sionoft hedebt or ,its hallbepr es umedt h att he  
creditordel iveredi tv olunt aril
y,unl es st hec ontraryi sprov ed. (1189) SECTI ON6 .-Nov at ion
Art.1273.Th er enunc iationoft hepr i
nc ipaldebts h
al lex t
ingui sht he
acces soryobl igations ; butt hewai veroft hel atters hallleav et he Art.1291 .Obl i
g ationsmaybemodi f
iedby :
formeri nf orce. (1190) (1)Ch ang ingt h eirobj ec torpr incipalc ondi t
ions ;
Art.1274.Iti spr es umedt hatt heac c ess oryobl i
g ationofpl edg eh as (2)Subs t i
tut ingt h eper sonoft hedebt or;
beenr emi ttedwh ent het hingpl edg ed, af teritsdel iver ytoth ec reditor
, (3)Subr og at ingat h i
rdper soni nther ightsoft h ec reditor .(1203)
isfoundi nt hepos s ess ionoft hedebt or, orofat hirdper sonwh oowns Art.1292. Inor dert hatanobl igationmaybeex ting uishedbyanot her
thet h
ing .
(1 191a) whichs ubs titut et hes ame, itisimper ativethati tbes odec lar edin
  unequi vocalt er ms ,ort hatt heol dandt henewobl igationsbeonev ery
SECTI ON4. -Conf us ionorMer gerofRi ghts pointinc ompat iblewi t heac hot her.(1204)
Art.1293. Nov at i
onwh ichc ons istsins ubs t
itutinganewdebt ori nth e
Art.1275 .
Theobl igat i
oni sextinguishedf romt heti
met hecharacter
sof placeoft h eor i
g inalone, maybemadeev enwi thoutt heknowl edgeor
creditoranddebt orar emer g
edi nt hes ameper son.(1192a) agains tthewi l
loft hel at ter,butnotwi t
houtt h ec onsentoft hec redi t
or.
Art.1276 .
Mer gerwh ic
ht akespl ac eintheper sonoft heprinci
pal Pay mentbyt h enewdebt org i
vesh imt herightsment i
onedi nAr tic
les
debtororc r
editorbenef itstheg uarantors.Confusionwh ic
htakes 1236and1 237. (1205 a)
placei ntheper sonofanyoft hel atterdoesnotex ti
nguishthe Art.1294. Ift hes ubs ti
tut ioni swi thoutt heknowl edg eorag ai ns tthewi l
l
oblig
at ion.(
1193) ofth edebt or ,thenewdebt or'sinsolvenc yornon- fulfil
lmentoft he
Art.1277.Confusiondoesnotex tinguishaj oi
ntobligationexceptas obligationss h allnotg iver i
s etoanyl iabilit
yont hepar toft heor iginal
regardst hesharec orrespondingt othec r
editorordebt orinwh omthe debt or.(n)
twoc haractersconc ur.(
1 194) Art.1295 .Th ei ns olvenc yoft henewdebt or ,whoh asbeenpr opos edby
  theor iginaldebt orandac cept edbyt hec reditor, shallnotr evivet he
SECTI ON5 .-Compens ation actionoft h el atterag ains tt heor igi
nalobl i
gor ,ex ceptwh ens aid
insolvenc ywasal readyex i
s ti
ngandofpubl icknowl edg e,orknownt o
Art.
1278.Compens at i
ons h
alltakepl acewhent woper sons
,inth
eirown thedebt or , wh ent hedel eg at edh isdebt .(1206a)
ri
ght,arecredi
torsanddebt orsofeac hoth
er .(
11 95
) Art.1296 .Wh ent h epr incipalobl igationi sex ti
ng uishedi nc ons equenc e
Art.
1279.Inorderth atcompens ationmaybepr oper ,i
tisnecess
ary: ofanov ati on, ac ces soryobl igationsmays ubsistonl yi nsof arast hey
(1
)Th ateachoneoft heobligorsbeboundpr incipall
y,andthathebeat maybenef itt hirdper sonswh odi dnotg i
vet heirc ons ent .(1207)
th
es amet i
meapr incipalcreditoroftheother; Art.1297. Ift henewobl igat ioni svoid, theor ig
inalones halls ubs i
st,
unles st hepar tiesi ntendedt hatt hef ormerr el at ions h ouldbe Art.131
7.Noonemayc ontractint henameofanot herwithoutbeing
exting uish edi nanyev ent .(n) authori
zedbyt h
el atter,orunles shehasbylawar i
ghttor epresent
Art. 1298. Th enov at ioni sv oi di ft heor i
ginalobl ig at i
onwasv oid, except hi
m.
whenannul mentmaybec lai medonl ybyt hedebt ororwh enr atification Ac ontr
actenteredi ntoi
nt henameofanot herbyonewh oh asno
validat esac tswh i
c har ev oi dabl e. (1208a) authori
tyorlegalrepr es
ent ati
on, orwhohasac t
edbey ondh i
spower s
,
Art. 1299. Ifth eor iginalobl ig ationwass ubjec tt oas us pens iveor shallbeunenforceable,unlessi tisrat
ifi
ed,expresslyorimpl i
edly,by
resol utor yc ondi t i
on, thenewobl ig ations h
al lbeundert hes ame thepersononwh os ebehalfith asbeenex ec
uted, bef
orei tisrevoked
condi tion, unl es si tisot h er wis es tipul ated. (n) bytheothercontract i
ngpar ty
.(1259a)
Art. 1300. Subr og ationofat h i
rdper soni nt her ig htsoft hec redi toris  
eitherl eg alorc onv ent ional . Th ef or meri snotpr es umed, ex cepti n CHAPTER2
cas esex pres s lyment ionedi nt h isCode; thelat termus tbec lear ly ESSENTIALREQUI SITESOFCONTRACTS
establ ishedi nor dert hati tmayt akeef fec t
.( 1209 a) GENERALPROVI SIONS
Art. 1301 .Conv ent ionals ubr og at ionofat hirdper sonr equir est he
cons entoft heor iginalpar tiesandoft het hi
r dper son. (n) Art.1
318.Thereisnoc ont ractunlessthef
ollowi
ngrequis
itesconc
ur:
Art. 1302. Itispr es umedt h att h erei sleg alsubr og at i
on: (1)Consentoft h
ec ontrac ti
ngpar t
ies;
(1)Wh enac redi torpay sanot h erc reditorwh oi spr efer red, even (2)Objectcertainwh i
chi sthesubjectmatterofth
ec ont
ract;
withoutt hedebt or '
sknowl edg e; (3)Causeoft heobl i
gationwh ic
hi sest
abli
s h
ed.(1
261)
(2)Wh enat hirdper son, noti nter es tedi nt heobl ig ation, pay swi tht he SECTION1 .-Cons ent
expr es sort ac itappr ov aloft hedebt or;
(3)Wh en, ev enwi t
h outt h eknowl edg eoft hedebt or, aper son Art. 131 9.Cons enti smani f es t edbyt h emeet ingoft heof ferandt h e
inter estedi nt hef ul fil
lmentoft heobl igationpay s ,with outpr ej udice acc ept anc eupont h et hingandt hec aus ewh ic har et oc ons titut et h e
tot heef fectsofc onf us ionast ot hel atter'ss har e. (121 0a) cont rac t.Th eof fermus tbec er tainandt heac cept anc eabs olut e. A
Art. 1303. Subr og ationt rans fer st ot h eper sonss ubr og atedt hec redit qual ifiedac c ept anc ec ons tit ut esac ount er -
of fer .
withal lt her ig htst h eretoapper t
ai ning ,eitherag ains tt hedebt oror Acc ept anc emadebyl etterort eleg r amdoesnotbi ndt h eof fer er
agai nstt hirdper son, bet heyg uar ant orsorpos ses s orsofmor t
g ages , exc eptf romt h et imei tc amet oh isknowl edg e.Th ec ont rac t,ins uc ha
subj ectt os tipul at ioni nac onv ent ionals ubrog at ion. (1 212a) cas e, ispr es umedt oh av ebeenent er edi nt oi nt hepl ac ewh er et h e
Art. 1304. Ac redi tor, towh ompar tialpay menth asbeenmade, may offerwasmade. (126 2a)
exer c i
seh isrig htf ort her emai nder ,andh es hal lbepr ef erredt ot h
e Art. 1320. Anac c ept anc emaybeex pr es sori mpl ied. (n)
per sonwh oh asbeens ubr og atedi nh i
spl acei nv irtueoft hepar tial Art. 1321 .Th eper s onmaki ngt h eof fermayf ixt h et ime, plac e, and
pay mentoft hes amec redi t.(121 3) mannerofac cept anc e, allofwh ichmus tbec ompl iedwi th .(
n)
  Art. 1322. Anof fermadet h roug hanag enti sac cept edf romt het ime
TitleI I.-CONTRACTS acc ept anc ei sc ommuni cat edt oh im. ( n)
  Art. 1323. Anof ferbec omesi nef fec tiveupont hedeat h, civil
CHAPTER1 inter dic ti
on, ins ani ty ,ori ns ol venc yofei th erpar tybef or eac cept anc e
GENERALPROVI SIONS isc onv ey ed. (n)
Art. 1324. Wh ent h eof fer erh asal lowedt heof fer eeac er tainper iodt o
Art .1305 .Ac ont r acti sameet ingofmi ndsbet weent woper s ons acc ept , theof fermaybewi th dr awnatanyt imebef or eac cept anc eby
wh erebyonebi ndsh ims el f,wi thr es pec tt ot h eot her ,tog ives omet hing communi cat ings uc hwi thdr awal ,ex ceptwh ent h eopt ioni sfounded
ort or enders omes ervi ce. (1 25 4a) uponac ons ider at ion, ass omet h i
ngpai dorpr omi sed. (n)
Art .1306 .Th ec ont rac tingpar tiesmayes t
abl i
s hs uc hs tipul at ions , Art. 1325 .Unl es si tappear sot h erwi s e, bus ines sadv er tisement sof
claus es ,termsandc ondi tionsast heymaydeemc onv eni ent , prov ided thing sf ors al ear enotdef i nit eof fer s, butmer ei nvitat ionst omakean
theyar enotc ont raryt ol aw, mor als, goodc us toms ,publ i
cor der ,or offer .(n)
publ icpol ic
y .(125 5a) Art. 1326 .Adv er tis ement sf orbi dder sar es impl yi nv itationst omake
Art .1307. Innomi nat ec ont rac t ss hal lber eg ul atedbyt h es tipul at i
ons propos als, andt h eadv er tis eri snotboundt oac ceptt heh i
gh es tor
oft hepar t i
es ,byt h epr ov isionsofTi tlesIandI Ioft hisBook, byt h e lowes tbi dder , unl es st hec ont r aryappear s .(n)
rulesg over ningt hemos tanal og ousnomi nat ec ont rac ts, andbyt he Art. 1327. Th ef ol lowi ngc annotg ivec ons entt oac ont r
ac t:
cus tomsoft hepl ac e.(n) (1)Unemanc ipat edmi nor s;
Art .1308. Th ec ont rac tmus tbi ndbot hc ont rac tingpar ties ;itsv alidityor (2)I ns aneordement edper sons , anddeaf -mut eswh odonotknowh ow
compl ianc ec annotbel ef tt ot hewi llofoneoft h em. ( 125 6a) towr ite. (126 3a)
Art .1309. Th edet ermi nat ionoft h eper for manc emaybel eftt oat h i
rd Art. 1328. Cont r ac tsent er edi nt odur ingal uc idi nter valar ev alid.
per son, wh os edec isions hal lnotbebi ndi ngunt ilith asbeenmade Cont r ac tsag reedt oi nas tat eofdr unkennes sordur i
ngah ypnot ic
knownt obot hc ont rac tingpar ties .(n) spel lar ev oi dabl e. ( n)
Art .131 0. Thedet ermi nat ions h allnotbeobl igat or yifi tisev ident ly Art. 1329. Th ei nc apac i
tydec lar edi nAr ticle1 327i ss ubj ec ttot he
inequi t abl e.Ins uchc as e, thec our tss hal ldec idewh ati sequi tabl e modi ficat ionsdet er mi nedbyl aw, andi sunder s toodt obewi th out
undert h ec ircums tanc es . (n) prej udi cet os pec ialdi squal ificat ionses tabl ish edi nt hel aws . (126 4)
Art .131 1 .Cont rac tst akeef fec tonl ybet weent hepar ties ,thei ras signs Art. 1330. Ac ont rac twh er ec ons enti sg ivent hroug hmi st ake, viol enc e,
andh ei r s,ex cepti nc as ewh er et her i
g htsandobl i
g ationsar isingf rom intimi dat ion, unduei nfluenc e, orf raudi sv oidabl e. (126 5a)
thec ont r
ac tar enott rans mi s siblebyt hei rnat ure, orbys tipul at i
onor Art. 1331 .I nor dert hatmi s takemayi nv alidat ec ons ent ,its houl dr efer
bypr ov isionofl aw. Th eh eiri snotl iabl ebey ondt hev al ueoft he tot hes ubs tanc eoft h et hingwh i
chi st heobj ec toft hec ont r
ac t, ort o
proper t yh er ecei vedf romt h edec edent . thos ec ondi tionswh ichh av epr incipal lymov edoneorbot hpar t i
est o
Ifac ont racts houl dc ont ai ns omes tipul at i
oni nf av orofat hirdper son, ent eri nt ot h ec ont r ac t.
hemaydemandi tsful fillmentpr ovidedh ec ommuni cat edh is Mi stakeast ot hei dent i
t yorqual ificat ionsofoneoft hepar t
ieswi ll
acc ept anc et ot h eobl ig orbef or ei t
sr ev oc ation. Amer ei ncident al vit
i atec ons entonl ywh ens uc hi dent ityorqual ificat ionsh avebeent he
benef itori nter es tofaper soni snots uf f
ic i
ent .Th ec ont rac tingpar ties princ ipalc aus eoft hec ont rac t.
mus th av ec lear lyanddel iber at elyc onf erredaf avoruponat hird As impl emi stakeofac counts hallg iver iset oi tsc orrec t i
on. (126 6a)
per son. (125 7a) Art. 1332. Wh enoneoft h epar tiesi sunabl et or ead, ori ft hec ont rac tis
Art .131 2. Inc ont rac tsc r eat ingr ealr i
g hts ,thirdper sonswh oc omei nto inal ang uag enotunder st oodbyh im, andmi s takeorf raudi sal leg ed,
pos ses sionoft h eobj ec toft hec ont r ac tar eboundt her eby ,s ubjec tto theper sonenf or cingt hec ont r ac tmus ts howt hatt h et er mst her eof
thepr ov i
s i
onsoft heMor tg ag eLawandt heLandReg istrat ionLaws .(n) hav ebeenf ul lyex plai nedt ot h ef or mer .(n)
Art .131 3. Credi tor sar epr ot ec tedi nc as esofc ont rac tsi ntendedt o Art. 1333. Th er ei snomi st akei ft hepar tyal leg ingi tknewt hedoubt ,
def raudt hem. (n) cont ing enc yorr iskaf f
ec t ingt h eobj ec toft h ec ont rac t.(n)
Art .131 4. Anyt hirdper s onwh oi nduc esanot h ert ov i
ol at eh isc ont rac t Art. 1334. Mut ualer rorast ot hel eg alef f
ec tofanag reementwh ent he
shal lbel i
abl ef ordamag est ot heot herc ont rac tingpar t
y .(n) realpur pos eoft h epar tiesi sf rus trat ed, mayv it i
at ec ons ent. (n)
Art .131 5 .Cont rac tsar eper fec tedbymer ec ons ent ,andf romt h at Art. 1335 .Th er ei sv iol enc ewh eni nor dert owr es tc ons ent ,seriousor
momentt hepar tiesar eboundnotonl yt ot hef ul fill
mentofwh ath as irr
es i
s tiblef or c ei sempl oy ed.
beenex pr esslys ti
pul at edbutal sot oal lt hec ons equenc eswh i
c h, Ther ei si nt imi dat ionwh enoneoft h ec ontr ac tingpar tiesi sc ompel l
ed
acc or di ngt ot hei rnat ur e, maybei nkeepi ngwi thg oodf ai t
h ,us ag eand byar eas onabl eandwel l-gr oundedf earofani mmi nentandg rav eev il
law. (1 25 8) uponh isper s onorpr oper ty ,orupont heper s onorpr oper t
yofh is
Art .131 6 .Realc ont rac ts ,s uc hasdepos it,pl edg eandCommodat um, spous e, des cendant soras c endant s ,tog iveh isc ons ent .
arenotper fec t
edunt ilt h edel iver yoft h eobj ec toft h eobl igat ion. (
n) Todet ermi net h edeg reeofi nt imi dat ion, th eag e, sexandc ondi tionof
theper s ons hallbebor nei nmi nd. mis
takeorunduei
nfl
uenc
e.(
n)
At hreatt oenf or c eone' sc lai mt hroug hc ompet entaut hority,ift he  
claimi sj us torl eg al ,doesnotv itiatec ons ent .( 1267a) CHAPTER3
Art.1 336 . Violenc eori nt imi dat ions hallannult heobl igation,al thoug h FORM OFCONTRACTS
itmayh av ebeenempl oy edbyat hirdper s onwh odi dnott akepar ti n
thec ont rac t.
( 126 8) Art.135 6.Cont r ac tssh al lbeobl igat ory, inwh at everf or mt heymayh ave
Art.1 337. Ther ei sunduei nf luenc ewh enaper sont akesi mpr oper beenent er edi nt o, prov idedal lth ees sent ialr equi sitesf ort h eir
adv ant ag eofh i
spowerov ert hewi llofanot h er ,depr ivingt hel at t
erof validityar epr es ent .
Howev er, wh ent h el awr equi rest hatac ont ractbe
ar eas onabl ef reedomofc h oic e.Th ef ol lowi ngc i
r cums tanc ess hallbe insomef ormi nor dert hati tmaybev alidorenf orc eabl e,ort h ata
cons ider ed: t
h ec onf ident ial ,fami l
y ,spi ri
t ualandot herr elations cont ractbepr ov edi nac er tainway , thatr equi rementi sabs ol uteand
betweent hepar ties ,ort hef ac tth att heper sonal leg edt oh av ebeen indispens abl e. Ins uchc as es ,ther igh toft hepar tiess tatedi nt h e
undul yi nf luenc edwass uff eringf romment alweaknes s,orwasi gnor ant followingar ticlec annotbeex er cised. (1 278a)
orinf i
nanc i
aldi stres s. (n) Art.135 7.Ifth el awr equi resadoc umentorot h ers pec ialfor m, asi nt h
e
Art.1 338. Ther ei sf raudwh en, th roug hi ns idiouswor dsormac hinat i
ons ac t
sandc ont rac tsenumer atedi nt h ef ol lowi ngar ticle, thec ont racting
ofoneoft hec ont rac tingpar ties ,th eot heri si nduc edt oent eri ntoa part i
esmayc ompeleac hot hert oobs er v et hatf or m, onc et hec ontract
cont rac twh ich,wi thoutt h em, hewoul dnoth av eag reedt o. (
126 9) hasbeenper fec ted. Th isr ightmaybeex er c i
s eds imul taneous lywi t
h
Art.1 339. Failuret odi s clos ef ac ts,wh ent h er ei sadut ytor ev ealt h em, theac ti
onupont h ec ont r ac t.
(1 279a)
aswh ent h epar t iesar eboundbyc onf ident ialr elat i
ons ,c onstitut es Art.135 8.Th ef ol lowingmus tappeari napubl icdoc ument :
fraud. (n) (1)Ac t
sandc ont r actswh ichh av ef ort hei robj ectt hec r eation,
Art.1 340. Theus ualex ag ger at i
onsi nt rade, wh ent h eot herpar tyh adan trans miss i
on, modi fi
c at ionorex ting uish mentofr ealr ig h
tsov er
oppor tuni tytoknowt h ef ac ts,ar enoti nt hems el vesf raudul ent .(n) immov ablepr oper ty;s alesofr ealpr oper tyorofani nteres tt hereina
Art.1 341 .Amer eex pr es sionofanopi ni ondoesnots ignifyf r
aud, gover nedbyAr t
ic les1 403, No. 2,and1 405 ;
unles smadebyanex per tandt h eot h erpar tyh asr eliedont h ef or mer '
s (2)Th ec es sion, r epudi at ionorr enunc iat ionofh er edi taryrig htsorof
spec ialknowl edg e.(n) thos eoft hec onj ug alpar t nersh ipofg ai ns ;
Art.1 342. Mi srepr es ent at ionbyat h i
rdper s ondoesnotv i
tiatec ons ent, (3)Th epowert oadmi ni sterpr oper ty,oranyot herpowerwh ic hh asf or
unles ss uc hmi sr epr es ent at ionh asc r eat eds ubs tant ialmi s
takeand itsobj ectanac tappear ingorwh ic hs houl dappeari napubl ic
thes amei smut ual .(n) doc ument ,ors h oul dpr ejudi ceat h irdper s on;
Art.1 343. Mi srepr es ent at ionmadei ng oodf aithi snotf raudul entbut (4)Th ec es sionofac t ionsorr ight spr oc eedi ngf romanac tappear i
ng
mayc ons tituteer ror .(n) inapubl icdoc ument .
Art.1 344. Inor dert hatf raudmaymakeac ont rac tv oidabl e,its houl d Allot herc ont rac tswh er et heamounti nv ol vedex ceedsf i
veh undr ed
bes er iousands houl dnoth avebeenempl oy edbybot hc ontrac ting pes osmus tappeari nwr iting,ev enapr iv ateone. Buts alesofg oods ,
par ti
es . chat t
el sort hing si nac tionar eg ov ernedbyAr ticl
es , 1403, No. 2and
Incident alf raudonl yobl igest heper sonempl oy i
ngi ttopaydamag es . 1405 .(1280a)
(1270)  
Art.1 345 . Simul at ionofac ont rac tmaybeabs olut eorr elative. The CHAPTER4
formert akespl ac ewh ent hepar tiesdonoti nt endt obeboundatal l
; REFORMATI ONOFI NSTRUMENTS( n)
thel att er ,whent h epar tiesc onc ealt h eirt r ueag reement .(n)
Art.1 346 . Anabs ol utel ys imul at edorf i
c titiousc ont ractisv oid. A Art. 135 9.Wh en, ther eh av ingbeenameet ingoft h emi ndsoft hepar ties
relativ es imulat ion, wh eni tdoesnotpr ej udi ceat hirdper sonandi s toac ont r ac t,theirt ruei nt ent ioni snotex pr es sedi nt hei ns trument
noti ntendedf oranypur pos ec ont raryt ol aw, mor als, goodc us toms , pur por tingt oembodyt heag reement ,byr eas onofmi s take, fr aud,
publ icor derorpubl icpol icybi ndst hepar tiest ot hei rrealag reement . inequi tabl ec onduc torac c i
dent ,oneoft h epar tiesmayas kf ort he
(n) refor mat ionoft hei nst rumentt ot heendt h ats uc ht ruei nt ent ionmay
  beex pr es sed.
SECTI ON2. -Obj ec tofCont rac ts Ifmi st ake, fraud, inequi tabl ec onduc t ,orac cidenth aspr ev ent eda
meet ingoft hemi ndsoft hepar ties , thepr operr emedyi snot
Art.1347. Al lthingswh i
char enotout sidet hec ommer c
eofmen, refor mat ionoft hei nst rumentbutannul mentoft hec ont rac t.
incl
udi ngf ut ureth i
ngs,maybet h
eobj ec tofac ont ract.Allright
swh i
ch Art. 136 0.Th epr inc i
pl esoft h eg ener all awont her eformat ionof
arenoti ntrans mi ss
iblemayal sobet h eobj ectofc ontrac t
s. instrument sar eh er ebyadopt edi ns ofarast heyar enoti nc onf li
ctwi th
Noc ont rac tmaybeent eredi ntouponf uturei nh eri
tanc eex ceptin thepr ov i
s ionsoft hisCode.
casesex pr es s
lyaut hori
zedbyl aw. Art. 136 1.Wh enamut ualmi s takeoft hepar ti
esc aus est hef ai lureof
Allser vi
c eswh icharenotc ontrarytol aw,mor als ,
goodc ustoms ,
publi
c thei ns trumentt odi scl os et h eirr ealag r eement ,s aidi ns tr umentmay
orderorpubl i
cpol i
cymayl ikewisebet heobj ec tofac ontract.(1
271a) ber ef or med.
Art.1348. Impos sibl
et hi
ng sors ervic
esc annotbet heobj ectof Art. 136 2.Ifonepar tywasmi s takenandt heot herac tedf r audul ent l
yor
contrac ts.(1272) inequi tabl yi ns uc hawayt hatt h ei ns trumentdoesnots h owt h eirtrue
Art.1349. Th eobj ectofev eryc ontractmus tbedet ermi nateast oits intent ion, th ef ormermayas kf ort h er ef or mat ionoft hei ns trument .
kind.Th ef ac tthatthequant it
yisnotdet ermi nat es hallnotbean Art. 136 3.Wh enonepar tywasmi s takenandt h eot h erkneworbel iev ed
obstac let ot heex ist
enc eoft hec ontract,pr ovidedi tispos s i
bleto thatt h ei ns trumentdi dnots tat et hei rr ealag reement ,butc onc eal ed
determi net hes ame, withoutt heneedofanewc ont ractbet weenthe thatf ac tf romt h ef ormer ,th ei ns trumentmayber efor med.
parti
es .( 1273) Art. 136 4.Wh ent h roug ht hei g nor anc e, lac kofs kill,neg lig enc eorbad
  faithont hepar toft h eper sondr af tingt hei ns trumentoroft hec ler kor
SECTI ON3. -Caus eofCont racts typist, thei nstrumentdoesnotex pr es st h et ruei nt ent i
onoft h epar ti
es,
thec our tsmayor dert hatt hei ns trumentber efor med.
Art.1350.Inoner ousc ont r
ac t
st hec aus ei sunder s t
oodt obe, foreac h Art. 136 5.Ift wopar tiesag reeupont h emor tgag eorpl edg eofr ealor
contractingpar ty,thepr es tationorpr omi seofat hingors ervicebyt he per sonalpr oper ty,butt h ei ns truments t at est hatt hepr oper tyi ss old
other;inr emuner atoryones ,th eserv i
c eorbenef itwh ichis abs olut elyorwi thar ig htofr epur ch as e, ref ormat ionoft h ei ns tr
ument
remuner at ed; andi nc ont r
ac tsofpur ebenef icenc e,t hemer eliberalit
y ispr oper .
ofthebenef ac t
or .(1274) Art. 136 6.Th er es hal lbenor ef ormat ioni nt hef ollowi ngc as es :
Art.1351.Th epar ticularmot i
vesoft h epar t
iesi nent eringi ntoa (1)Si mpl edonat ionsi nt erv iv oswh erei nnoc ondi tioni si mpos ed;
contractar edi fferentf romt hec aus et hereof .(
n) (2)Wi lls;
Art.1352.Cont rac tswi thoutc aus e,orwi t
hunl awf ulc ause, produc eno (3)Wh ent h er ealag reementi sv oid.
effectwh at ev er.Thec aus eisunl awf ulifi ti
sc ont rarytol aw, mor als
, Art. 136 7.Wh enoneoft h epar t iesh asbr oug htanac t
iont oenf orcet he
goodc us t
oms ,publ i
cor derorpubl icpol icy.(1275a) instrument , hec annots ubs equent lyas kf ori tsr efor mat ion.
Art.1353.Th es tatementofaf al secaus ei nc ontrac t
ss hallr endert hem Art. 136 8.Ref ormat ionmaybeor der edatt hei ns tanc eofei therpar ty
void,ifits houl dnotbepr ovedt hatt heywer efoundeduponanot her orh iss uc c es sorsi ni nt er est ,ift h emi stakewasmut ual ;ot h er wise,
causewh i
c hi st rueandl awful. (1
276 ) uponpet it i
onoft hei nj ur edpar ty,orh ish eirsandas signs .
Art.1354.Al th oug hthec aus eisnots tatedi nt hec ontract,itis Art. 136 9.Th epr oc edur ef ort her ef ormat i
onofi ns truments h allbe
presumedt hati tex istsandi sl awful,unl esst hedebt orprov est he gov ernedbyr ulesofc our tt obepr omul g at edbyt heSupr emeCour t.
contrary.(1277)  
Art.1355.Ex c epti nc as ess pec if
iedbyl aw, l
es i
onori nadequac yof CHAPTER5
causes hal lnoti nvalidat eac ontract, unlesst hereh asbeenf raud, INTERPRETATI ONOFCONTRACTS
 debt sc ontractedbef or ethedonat i
on.
Art. 1370. Ift het er msofac ont r ac tar ec learandl eav enodoubtupon Alienat ionsbyoner oust i
t l
ear eal sopr esumedf raudul entwh enmade
thei ntent ionoft hec ont rac tingpar ties, th el i
ter almeani ngofi ts byper sonsag ainstwh oms omej udg menth asbeeni ssued. Th edecision
stipul at ionss hal lc ont rol. orat tac hmentneednotr ef ertot hepr opertyalienat ed, andneednot
Ifth ewor dsappeart obec ont rar yt oth eev identi nt ent ionoft he havebeenobt ai
nedbyt hepar tys eekingt heres cission.
par ti
es ,th el at t
ers h allpr ev ailov ert hef or mer .( 1281 ) Inaddi t i
ont ot h
es epr esumpt ions ,thedes ignt odef raudc reditorsmay
Art. 1371 . Inor dert oj udg et h ei nt ent i
onoft h ec ont rac tingpar t ies, bepr ov edi nanyot hermannerr ecog nizedbyt hel awofev idenc e.
theirc ont empor aneousands ubs equentac tss hal lbepr inc i
pal ly (1297a)
cons ider ed. (1282) Art.1388. Wh oeverac qui r
esi nbadf aiththethingsal ienat edi nfraudof
Art. 1372. Howev erg ener alt het er msofac ont rac tmaybe, theys hall creditor s,shallindemni fyth elat terfordamag ess ufferedbyt hemon
notbeunder stoodt oc ompr eh endt hing st hatar edi stinc tandc as es accountoft h ealienation, whenev er,duet oanyc aus e,itsh ouldbe
thatar edi ffer entf romt hos euponwh i
c ht hepar t i
esi ntendedt oag r
ee. impos s
iblef orh i
mt or eturnt hem.
(1283) Ifther ear etwoormor eal ienat ions ,
th efi
rstac qui r
ers hal lbel i
able
Art. 1373. Ifs omes tipul ati onofanyc ont rac ts houl dadmi tofs ev eral fir
s t
, ands oons uccess iv
ely .(
1 298a)
meani ng s ,its hal lbeunder stoodasbear ingt hati mpor twh i
c hismos t Art.1389. Theac tiont oc l
aimr es cissi
onmus tbec ommenc edwi th
in
adequat et or enderi tef fec tual .(1284) foury ear s.
Art. 1374. Th ev ar iouss tipul at ionsofac ont racts h allbei nt erpr et ed Forper sonsunderg uar dianshipandf orabs entees ,theper iodoff our
toget her , att ri
but ingt ot hedoubt fulonest hats ens ewh i
c hmayr esult yearss h allnotbeg inunt ilthet er minat i
onoft hef ormer 'sinc apacity,or
fromal loft hemt akenj oi nt ly.(1 285 ) untilt h
edomi c i
leoft hel atteri sknown. (1
299 )
Art. 1375 . Wor dswh ichmayh av edi ff
er ents ignificat ionss h allbe  
under stoodi nt hatwh ichismos ti nkeepi ngwi t
ht henat ur eandobj ec t CHAPTER7
oft hec ont rac t.(1 286 ) VOI DABLECONTRACTS
Art. 1376 . Th eus ag eorc us t omoft hepl ac es hallbebor nei nmi ndi nt he
interpr et at ionoft heambi g ui tiesofac ont rac t,ands hallf illth e Art.1 390. Th ef ollowi ngc ont rac tsar ev oi dabl eorannul l
abl e, ev en
omi ss ionofs tipul at ionswh ichar eor dinar i
lyes tabl ished. (1287) thoug ht h eremayh av ebeennodamag et ot hec ont rac tingpar ties :
Art. 1377. Th ei nter pr etat i
onofobs curewor dsors tipul ationsi na (1)Th os ewh er eoneoft hepar tiesi sinc apabl eofg ivingc ons entt oa
cont rac ts h allnotf av ort hepar tywh oc aus edt heobs curity .
( 1288) cont rac t;
Art. 1378. Wh eni ti sabs olut el yi mpos sibl et os ett l
edoubt sbyt h er ules (2)Th os ewh er et h ec ons enti sv itiat edbymi s take, violenc e,
establ is hedi nt hepr ecedi ngar tic l
es ,andt hedoubt sr ef ert o inti
mi dat ion, unduei nf luenc eorf raud.
incident alc i
rc ums tanc esofag r atuitousc ontrac t, thel eas t Thes ec ont rac tsar ebi ndi ng, unl es st h eyar eannul ledbyapr oper
trans mi s sionofr igh tsandi nt er es tss hallpr evail.I ft hec ont rac ti s actioni nc our t.Th eyar es usc ept ibleofr atif icat ion. (n)
oner ous ,th edoubts h allbes et tledi nf av oroft h eg r eat es trec ipr ocity Art.1 391 .Th eac tionf orannul ments hallbebr oug htwi th i
nf oury ear s.
ofi nter es ts. Thisper iods hallbeg in:
Ifth edoubt sar ec as tupont hepr incipalobj ectoft h ec ont r
ac ti ns uc h Inc as esofi ntimi dat ion, violenc eorunduei nfluenc e, fromt het imet he
awayt h ati tc annotbeknownwh atmayh av ebeent h ei ntent ionorwi ll defec toft hec ons entc eas es .
oft hepar ties ,thec ont rac ts hal lbenul landv oid. ( 1289 ) Inc as eofmi stakeorf r aud, fromt h et imeoft h edi scov eryoft hes ame.
Art. 1379. Th epr inc ipl esofi nt er pr etations t
at edi nRul e1 23oft h e Andwh ent heac tionr ef er st oc ont rac tsent er edi nt obymi nor sorot her
Rul esofCour tsh al llikewi sebeobs ervedi nt hec ons truc t i
onof incapac itat edper s ons , fr omt het imet heg uar dians h ipc eas es. (1301 a)
cont rac ts .(n) Art.1 392. Rat ificat ionex t ingui sh est heac tiont oannulav oi dabl e
  cont rac t.(1309a)
CHAPTER6 Art.1 393. Rat ificat ionmaybeef fec tedex pr es s lyort ac i
tly. Itis
RESCI SSI BLECONTRACTS under stoodt hatt h er ei sat ac itr at ificat ioni f,wi thknowl edg eoft he
reas onwh ichr ender st h ec ont rac tv oidabl eands uc hr eas onh av i
ng
Art.1380. Cont rac tsv al idl yag reeduponmayber es cindedi nth ec ases ceas ed, theper sonwh oh asar ig htt oi nv okei ts houl dex ec ut eanac t
establ ishedbyl aw. (
1290) whic hnec es s arilyi mpl iesani nt ent iont owai veh isr i
g ht.(1 31 1a)
Art.1381 .
Th ef ol lowingc ont r ac tsar er esc is sibl
e: Art.1 394. Rat ificat ionmaybeef fec tedbyt heg uar di anoft he
(1)Th os ewh ichar eent er edi nt obyg uar dianswh enev ert hewar ds incapac itat edper s on. ( n)
whomt heyr epr es ents uf ferl es ionbymor et h anone- four thoft hev alue Art.1 395 .Rat ificat iondoesnotr equi ret h ec onf or mi tyoft he
ofthet hing swh ichar et h eobj ec tt her eof ; cont rac tingpar tywh oh asnor ig htt obr ingt heac tionf orannul ment .
(2)Th os eag reeduponi nr epr esent at ionofabs ent ees , i
ft hel at ter (1312)
suffert h el esions tatedi nt h epr ec edi ngnumber ; Art.1 396 .Rat ificat ionc leans est hec ont rac tf romal li tsdef ec tsf rom
(3)Th os eunder takeni nf raudofc redi tor swh ent hel at terc annoti n themomenti twasc ons t ituted. (1 313)
anyot h ermannerc ollec tt h ec laimsduet h em; Art.1 397. Th eac t i
onf ort heannul mentofc ont r ac tsmaybei ns t
it uted
(4)Th os ewh ichr ef ert ot hing sunderl itigat ioni ft heyh av ebeen byal lwh oar et h er ebyobl igedpr inc ipall yors ubs idiar ily.Howev er ,
enter edi nt obyt hedef endantwi thoutt heknowl edg eandappr ov alof pers onswh oar ec apabl ec annotal leg et h ei nc apac ityoft h osewi t
h
thelitig ant sorofc ompet entj udic ialaut h ority; whomt heyc ont rac ted; norc ant h os ewh oex er tedi ntimi dat ion, v iolenc e,
(5)Al lot herc ont ractss pec ial lydec lar edbyl awt obes ubj ectt o orunduei nfl uenc e, orempl oy edf r
aud, orc aus edmi s takebas et heir
resciss ion. (1291 a) actionupont hes ef lawsoft h ec ont rac t.( 1302a)
Art.1382. Pay ment smadei nas tat eofi ns ol venc yf orobl igationst o Art.1 398. Anobl ig at ionh av i
ngbeenannul led, th ec ont rac tingpar ties
whos ef ulf i
llmentt hedebt orc oul dnotbec ompel ledatt het imet hey shallr es tor et oeac hot hert het hing swh ic hh av ebeent hes ubj ec t
wereef fec ted, ar eal s or es cis sible. (1292) mat teroft hec ont r ac t,wi tht hei rf rui t
s ,andt hepr i cewi thi t sint eres t,
Art.1383. Th eac t
ionf orr es cis sioni ss ubs idi ary; itc annotbei ns tituted excepti nc as espr ov idedbyl aw.
exceptwh ent hepar tys uf f er ingdamag eh asnoot h erl eg almeanst o Inobl ig ationst or enders er vic e, thev aluet her eofs h allbet hebas isf or
obtainr epar at ionf ort h es ame. (1294) damag es .(1303a)
Art.1384. Res cis sions h al lbeonl ytot heex tentnec es sar ytoc ov ert he Art.1 399. Wh ent hedef ec toft hec ont r
ac tc ons istsi nt hei nc apac ityof
damag esc aus ed. (n) oneoft hepar ties , thei nc apac itat edper s oni snotobl i
g edt omakeany
Art.1385 .Res cis sionc reat est heobl igat iont or et urnt h et hing swh ich restitut ionex cepti ns of arash eh asbeenbenef i
tedbyt h et hingor
weret heobj ec toft hec ont rac t,tog eth erwi tht hei rf ruits ,andt hepr ice pricer ecei vedbyh im. (1 304)
withitsi nt eres t;c onsequent ly ,itc anbec ar riedoutonl ywh enh ewh o Art.1 400. Wh enev ert heper sonobl igedbyt hedec reeofannul mentt o
demandsr es cissionc anr et ur nwh at ev erh emaybeobl ig edt or es tore. retur nt het h ingc annotdos obec aus ei th asbeenl os tth roug hh isfaul t,
Neith ers h allr esc issiont akepl acewh ent h et h
ing swh ichar et heobj ect hes hal lr etur nth ef ruit sr ec ei vedandt h ev alueoft het h i
ngatt h et i
me
ofthec ont rac tar el eg al lyi nt hepos s es sionoft h irdper sonswh odi d ofth el os s ,wi thint er es tf romt h es amedat e. ( 1307a)
notac tinbadf ait h. Art.1 401 .Th eac tionf orannul mentofc ont rac t ss hal lbeex ting uis hed
Inthisc ase, indemni t
yf ordamag esmaybedemandedf romt h eper s
on whent h et hingwh ic hi st h eobj ec tt her eofi sl os tth roug ht hef raudor
caus i
ngt hel os s.( 1295 ) faultoft h eper sonwh oh asar igh tt oi ns titut et h epr oc eedi ng s.
Art.1386 .Res cis sionr ef er redt oinNos .1and2ofAr ticle1 381s h allnot Ifther igh tofac t ioni sbas edupont h einc apac ityofanyoneoft he
takepl acewi thr es pec tt oc ont rac tsappr ov edbyt h ec our ts.(1 296 a) cont rac tingpar ties ,t hel os soft h et h i
ngs h al lnotbeanobs tac let ot he
Art.1387. Allc ont rac t
sbyv irt ueofwh i
c ht h edebt oral ienat espr oper ty succ es soft h eac tion, unl es ss ai dl os st ookpl ac et hroug ht h ef raudor
byg ratui toust i
tlear epr es umedt oh av ebeenent er edi ntoi nf raudof faultoft h epl aint iff. (131 4a)
creditor s, whent hedonordi dnotr es er ves ufficientpr oper tyt opayal l Art.1 402. Asl ongasoneoft hec ont r ac t
ingpar tiesdoesnotr es tore
whatinvirt
ueofthedec
reeofannul
mentheisboundtor
eturn,
the the PenalCode  rel at i
v et ot hedi s pos alofef fec tsori ns trument sofa
othercannotbec
ompelledt
ocomplywi
thwhatisinc
umbentuponhi
m. crimes h allbeappl ic abl et ot het h ingsort h epr i
ceoft hec ont rac t.
(1
308) Thisr ules h allbeappl ic abl ewh enonl yoneoft hepar tiesi sg uilty; but
  thei nnoc entonemayc lai mwh ath eh asg iven, ands hal lnotbeboundt o
CHAPTER8 compl ywi thh ispr omi s e. (1305 )
UNENFORCEABLECONTRACTS( n) Art. 141 2. Ift heac ti nwh icht heunl awf ulorf orbi ddenc aus ec ons ists
doesnotc ons titut eac r imi nalof f ens e, t hef ollowi ngr ul ess h allbe
Art. 1403. Thef ol lowi ngc ont rac tsar eunenf or ceabl e, unl es sth eyar e obs er ved:
ratified: (1)Wh ent hef aul ti sont hepar tofbot hc ont rac tingpar ti
es ,nei ther
(1)Th os eent er edi ntoi nt henameofanot herper sonbyonewh oh as mayr ec ov erwh ath eh asg iv enbyv irtueoft h ec ont r act ,ordemandt he
beeng ivennoaut h orityorl eg alr epr es ent ation, orwh oh asac ted per for manc eoft h eot h er'sunder taki ng ;
bey ondh ispower s; (2)Wh enonl yoneoft hec ont rac t ingpar tiesi satf aul t, hec annot
(2)Th os et hatdonotc ompl ywi tht heSt at uteofFr audsass etf or thi n recov erwh ath eh asg ivenbyr eas onoft hec ont rac t, oras kf ort he
thisnumber . Int h ef ollowi ngc as esanag reementh er eaf termades h all fulfillmentofwh ath asbeenpr omi sedh im. Th eot her ,wh oi snotat
beunenf or c eabl ebyac tion, unl es st hes ame, ors omenot eor faul t, maydemandt h er etur nofwh ath eh asg ivenwi thoutany
memor andum, th er eof, bei nwr iting ,ands ubs cribedbyt h epar ty oblig at iont oc ompl yh ispr omi se. ( 1306 )
char ged, orbyh isag ent ; ev idenc e, ther efor e, oft heag reementc annot Art. 141 3. Int eres tpai di nex ces soft hei nter es tal l owedbyt heus ur y
ber ec ei vedwi th outt hewr iting , oras ec ondar yev idenc eofi tsc ont ent s: lawsmayber ec ov er edbyt h edebt or ,wit hint er es tt her eonf romt he
(a)Anag reementt hatbyi tst er msi snott obeper for medwi t
h inay ear dat eoft h epay ment .
fromt h emaki ngt hereof ; Art. 141 4. Wh enmoneyi spai dorpr oper tydel iveredf orani lleg al
(b)As pec i
alpr omi s
et oans werf ort hedebt ,def aul t, ormi s c
ar r iag eof pur pos e, thec ont rac tmayber epudi at edbyoneoft h epar t i
esbef ore
anot her ; thepur pos eh asbeenac c ompl ish ed, orbef oreanydamag eh asbeen
(c)Anag reementmadei nc ons ider ationofmar riag e, ot hert hana caus edt oat hirdper son. Ins uc hc as e, th ec our tsmay ,ift h epubl ic
mut ualpr omi set omar r
y ; inter es twi llthusbes ubs er ved, al lowt h epar tyr epudi at i
ngt h e
(d)Anag reementf ort hes al eofg oods , ch at telsort hing sinac tion, at cont rac tt or ec overt h emoneyorpr oper ty.
apr ic enotl es st hanf iveh undr edpes os ,unl es st hebuy erac ceptand Art. 141 5 .Wh ereoneoft hepar tiest oani lleg alc ont rac ti si nc apabl eof
recei vepar tofs uc hg oodsandc h at tel s,ort heev idenc es ,ors omeof givingc ons ent ,th ec our tsmay , ift h ei nter es tofj us tices odemands
them, ofs uc ht hi ng sinac tionorpayatt het imes omepar toft h e allowr ec ov eryofmoneyorpr oper t ydel iver edbyt h ei nc apac itated
purc has emoney ; butwh enas al ei smadebyauc tionandent ryi smade per son.
byt heauc tioneeri nh i
ss al esbook, att h et imeoft h es ale, oft h e Art. 141 6 .Wh ent heag reementi snoti lleg alpers ebuti smer el y
amountandki ndofpr oper t ys ol d, termsofs ale, pr ice, namesoft he proh ibi ted, andt hepr oh ibitionbyt h el awi sdes ignat edf ort he
purc has er sandper s
ononwh os eac countt hes alei smade, itisa prot ec tionoft h epl aint iff,h emay ,ifpubl i
cpol icyi st her ebyenh anc ed,
suffic ientmemor andum; recov erwh ath eh aspai dordel iv er ed.
(e)Anag reementoft hel eas ingf oral ong erper iodt h anoney ear ,or Art. 141 7. Wh ent hepr iceofanyar t icleorc ommodi tyi sdet ermi nedby
fort hes al eofr ealpr oper tyorofani nter es tt her ei n; stat ut e, orbyaut hor ityofl aw, anyper s onpay inganyamounti nex cess
(f)Ar epr es ent at ionast ot h ec redi tofat h irdper s on. oft hemax i
mumpr ic eal lowedmayr ec ov ers uc hex ces s .
(3)Th os ewh er ebot hpar tiesar ei nc apabl eofg ivingc ons entt oa Art. 141 8. Wh ent hel awf ixes ,oraut hor izest hef ixingoft hemax i
mum
cont rac t. numberofh our sofl abor ,andac ont rac ti sent er edi nt owh er ebya
Art. 1404. Unaut hor izedc ont rac tsar eg ov er nedbyAr ticle1 31 7andt h e labor erunder t
akest owor kl ong ert hant hemax imumt husf ixed, he
princi plesofag enc yi nTi tleXoft hisBook. maydemandaddi tionalc ompens at ionf ors er vicer ender edbey ondt he
Art. 1405 .Cont rac tsi nfring ingt h eSt at ut eofFr auds , ref erredt oi nNo. timel imi t .
2ofAr ticle1 403, ar er atifiedbyt hef ailur et oobj ec tt ot h e Art. 141 9 .Wh ent hel aws et s,oraut h or izest hes ettingofami ni mum
pres ent at ionofor alev idenc et opr ovet hes ame, orbyt h eac c ept anc e wag ef orl abor er s, andac ont r ac ti sag reeduponbywh ichal abor er
ofbenef itundert hem. acc ept sal owerwag e, hes h allbeent itledt or ec ov ert h edef ic i
enc y .
Art. 1406 .Wh enac ont rac tisenf or ceabl eundert h eSt at uteofFr auds , Art. 1420. Inc as eofadi visiblec ont rac t, i
ft h ei ll
eg alt er msc anbe
andapubl icdoc umenti snec es s ar yf ori tsr eg i
st rat ioni nth eReg istr y separ at edf romt h el eg alones , thel at termaybeenf or ced.
ofDeeds ,th epar tiesmayav ai lt h ems elv esoft her igh tunderAr t i
c l
e Art. 1421 .Th edef ens eofi lleg alit yofc ont rac tisnotav ailabl et oth ird
1357. per sonswh os ei nter es tsar enotdi rec tlyaf fec ted.
Art. 1407. Inac ont rac twh er ebot hpar tiesar einc apabl eofg i
v ing Art. 1422. Ac ont rac twh ic hi st hedi rec tr es ultofapr ev iousi l
l egal
cons ent , ex pr es sori mpl i
edr at ific at i
onbyt hepar ent , org uar di an, as cont rac t,isal s ov oi dandi nex is tent .
thec as emaybe, ofoneoft h ec ont rac tingpar tiess h allg ivet h e  
cont rac tt hes ameef fec tasi fonl yoneoft h emwer ei nc apac itat ed. TitleI II.-NATURALOBLI GATI ONS
Ifrat ificat ioni smadebyt hepar ent sorg uar dians ,ast h ec as emaybe,
ofbot hc ont r ac tingpar t
ies ,th ec ont rac ts hal lbev al idat edf romt he Art.1423. Obl igat i
onsar ec ivilornat ural .Civ ilobl i
g at i
onsg ivear ight
incept ion. ofac tiont oc ompelt h eirper formanc e. Nat uralobl igat i
ons ,notbei ng
Art. 1408. Unenf or ceabl ec ont r ac tsc annotbeas s ailedbyt hirdper sons . basedonpos iti
v el awbutonequi tyandnat ur all aw, donotg ranta
  rightofac tiont oenf or ceth eirper for manc e, butaf terv ol untar y
CHAPTER9 fulfi
llmentbyt heobl igor,theyaut hor i
z et her et ent ionofwh ath asbeen
VOI DANDI NEXI STENTCONTRACTS deliver edorr ender edbyr eas ont h ereof . Somenat ur alobl igationsar e
setf orthi nt hef ol l
owi ngar ticles.
Art.1409. Th ef oll
owi ngc ontrac tsarei nex istentandv oidfromt he Art.1424. Wh enar i
g h ttos ueuponac ivilobl ig at i
onh asl aps edby
beginni ng: extinc ti
v epr es cr i
pt ion, theobl igorwh ov olunt ar ilyper for mst h e
(1)Th os ewh os ec ause, objectorpur pos ei sc ontrar ytolaw,mor als, contr actc annotr ecov erwh ath eh asdel iveredort hev alueoft he
goodc ustoms ,publ i
cor derorpubl i
cpol icy; servic eh eh asr ender ed.
(2)Th os ewh ichareabs olutelys imulatedorf icti
tious ; Art.1425 .Wh enwi thoutt heknowl edg eorag ains tt hewi lloft hedebt or,
(3)Th os ewh osec aus eorobj ec tdidnotex i
s tatt h etimeoft he at hi
r dper sonpay sadebtwh i
cht heobl ig ori snotl eg allyboundt opay
transac tion; becaus et heac tiont her eonh aspr esc ribed, butt hedebt orl ater
(4)Th os ewh oseobj ecti sout si
det h
ec ommer ceofmen; volunt ar i
lyrei mbur s est het hirdper son, th eobl igorc annotr ec over
(5)Th os ewh ichcontempl ateani mpos sibles ervice; whath eh aspai d.
(6)Th os ewh ereth eintent i
onoft hepar t
iesr elativetot heprincipal Art.1426 .Wh enami norbet weenei g hteenandt went y-oney earsofag e
objectoft hec ontractc annotbeas certained; whoh asent er edi ntoac ont ractwi thoutt h ec ons entoft h epar entor
(7)Th os eex pr esslypr ohibit
edordec laredv oi dbyl aw. guar dian, aft ert heannul mentoft hec ont rac tv ol unt arilyr eturnst he
Thesec ontr actsc annotber at i
fied.Nei therc ant her i
ghttos etupt he whol et hingorpr icer eceived, notwi th standi ngt h ef ac tth eh eh asnot
defens eofi llegalitybewai ved. beenbenef itedt her eby , t
her eisnor i
g htt odemandt h eth ingorpr i
ce
Art.141 0.Th eac ti
onordef ens ef orthedec lar ati
onoft heinexist
enc e thusr et urned.
ofac ont rac tdoesnotpr es cri
be. Art.1427. Wh enami norbet weenei g hteenandt went y-oney earsofag e,
Art.141 1.Wh ent henul lityproc eedsf romt hei llegalityofthec auseor whoh asent er edi ntoac ont ractwi thoutt h ec ons entoft h epar entor
objectoft hec ontract,andt h eac tcons titutesac riminalof f
ense, bot
h guar dian, vol unt arilypay sas umofmoneyordel iver saf ung i
bl ethi
ng
partiesbei ngi npar idel i
c t
o, theys hallhav enoac tionagainsteac h inful fi
llmentoft heobl igation, t
h er es hal lbenor i
g htt or ecov erthe
other, andbot hs hallbepr osec uted.Mor eov er ,t
hepr ovisi
onsof samef romt h eobl i
g eewh oh asspentorc ons umedi ting oodf aith.
(1160A)  
Art.1428.Wh en,afteranac tiont oenforc
eac ivi
lobligationhasfailed CHAPTER3
thedef endantv oluntar i
lyper formstheobl i
gation,hec annotdemand IMPLI
EDTRUSTS
ther eturnofwh ath eh asdel i
veredorthepay mentoft h evalueofth e
serviceh eh asrendered. Ar t.1447. Th eenumer ationoft hef ol lowi ngc as esofi mpl iedt rus tdoes
Art.1429.Wh enat estat eori ntestat
eh eirvoluntari
lypay sadebtoft he notex c ludeot h erses tabl is hedbyt heg ener all awoft rus t ,butt he
decedentex ceedingth ev alueoft heproper t
ywh ic
hh er eceiv
edbywi ll limi t
at ionl ai ddowni nAr ticle1 442s h allbeappl i
c abl e.
orbyt hel awofi ntestac yfromt heestateoft hedec eased, t
hepay ment Ar t.1448. Th er ei sani mpl iedt rus twh enpr oper tyi ss old, andt hel egal
isval i
dandc annotber escindedbyt hepay er. es tatei sg r ant edt oonepar tybutt h epr ic ei spai dbyanot h erf ort he
Art.1430.Wh enawi l
lisdec laredvoidbecaus eithasnotbeenex ecuted pur pos eofh av ingt hebenef ic iali nt er estoft hepr oper ty .Th ef or meri s
inac cordanc ewiththef ormal iti
esrequiredbyl aw,butoneoft h
e thet rus t ee, wh ilet hel at teri st hebenef ic i
ar y.Howev er ,ift h eper s ont o
int
es tateh eirs
,aftert hes ettlementofth edebtsoft hedec eased,pays wh omt h et i
t lei sc onv ey edi sac hild, l
eg itimat eori ll
eg itimat e, oft he
aleg acyinc ompl i
ancewi thac l
auseinthedef ecti
vewi ll,t
hepay ment onepay ingt hepr iceoft h es al e, not rus ti simpl i
edbyl aw, itbei ng
iseffec t
iveandi rrevoc able. disput abl ypr es umedt hatt h er ei sag ifti nf av oroft hec hi l
d.
  Ar t.1449. Th er ei sal s oani mpl iedt rus twh enadonat ioni smadet oa
Tit
leI V.-ESTOPPEL( n) per sonbuti tappear st hatal thoug ht hel eg ales tatei st rans mit tedt o
thedonee, h enev er theles si sei t
h ert oh av enobenef iciali nt er es tor
Art.1 431 .Throug hes toppelanadmi s sionorr epr esent ationi srender ed onl yapar tt her eof .
conc lusiv eupont h eper sonmaki ngi t, andc annotbedeni edor Ar t.145 0. Ift hepr iceofas aleofpr oper tyi sl oanedorpai dbyone
dispr ovedasag ai ns ttheper sonr ely i
ngt h
er eon. per sonf ort h ebenef itofanot herandt hec onv eyanc ei smadet ot h e
Art.1 432. Thepr inc iplesofes toppelar eh er ebyadopt edi ns ofarast h ey lenderorpay ort os ec uret hepay mentoft h edebt , at rus tar isesby
arenoti nc onf li
c twi tht hepr ov isionsoft hisCode, theCodeof oper at ionofl awi nfav oroft h eper s ont owh omt hemoneyi sl oanedor
Commer c e,th eRul esofCour tands pec iallaws . forwh omi tsi spai d. Th el at termayr edeemt h epr oper tyandc ompela
Art.1 433. Est oppelmaybe  inpai s  
orbydeed. conv ey anc et her eoft oh im.
Art.1 434. Wh enaper s onwh oi snott heownerofat h i
ngs ellsor Ar t.145 1. Wh enl andpas sesbys uc c es siont oanyper sonandh ec aus es
alienat esanddel i versi t
, andl atert h es ellerorg rant orac quirest i
tle thel eg alt itlet obeputi nt h enameofanot her ,at rus ti ses tabl ished
theret o, sucht it
lepas sesbyoper ationofl awt ot hebuy erorg rant ee. byi mpl i
c at ionofl awf ort h ebenef itoft h et rueowner .
Art.1 435 .Ifaper soni nrepr es ent ationofanot hers ellsoral ienat esa Ar t.145 2. Ift woormor eper sonsag reet opur chas epr oper tyandby
thing, thef or merc annots ubs equent lys etuph i
sownt i tl
easag ai nst commonc ons entt hel eg alt itlei st akeni nt henameofoneoft hemf or
thebuy erorg rant ee. thebenef itofal l,at rus ti sc r eat edbyf or ceofl awi nf av oroft he
Art.1 436 .Al es seeorabai l
eei ses t
oppedf romas sertingt i
tlet ot he oth ersi npr opor ti
ont ot h ei nt er es tofeac h.
thingl eas edorr ec ei ved,asag ai nstt h eles sororbai lor . Ar t.145 3. Wh enpr oper tyi sc onv ey edt oaper soni nr el ianc euponh is
Art.1 437. Wh eni nac ont ractbet weent hirdper sonsc onc er ning dec lar edi nt ent iont oh oldi tf or ,ort rans feri ttoanot herort h eg rant or,
immov abl epr oper t
y ,oneoft h emi smi sledbyaper sonwi thr espec tto ther ei sani mpl iedt r usti nf av oroft heper sonwh osebenef iti s
theowner s h
iporr ealr i
gh tov ert her eales tat e, thelat teri spr ec luded cont empl at ed.
fromas ser t
ingh isl eg altitleori nt er es tther ein,pr ovidedal lt hes e Ar t.145 4. Ifanabs olut ec onv ey anc eofpr oper t yismadei nor dert o
requi sitesar epr es ent : sec uret h eper f
or manc eofanobl igat ionoft heg rant ort owar dt he
(1)Th er emus tbef raudul entr epr es ent ationorwr ong fulc onc eal ment grant ee, at rus tbyv irtueofl awi ses tabl ish ed. Ifth ef ul fill
mentoft he
off ac t
sknownt ot hepar tyes topped; obl igationi sof fer edbyt h eg r ant orwh eni tbec omesdue, hemay
(2)Th epar typr ec ludedmus tintendt hatt heot h ers houl dac tupont he demandt her ec onv ey anc eoft h epr oper tyt oh im.
fac t
sasmi srepr es ent ed; Ar t.145 5. Wh enanyt rus tee, guar di anorot herper s onh oldi nga
(3)Th epar tymi s l
edmus th avebeenunawar eoft het ruef ac ts;and fiduc iaryr el ations hipus est rus tf undsf ort h epur chas eofpr oper tyand
(4)Th epar tydef raudedmus th av eac tedi nac cordanc ewi tht he caus est h ec onv ey anc et obemadet oh imort oat h i
rdper son, at rusti s
mi srepr es ent ation. es tabl i
s hedbyoper at i
onofl awi nf av oroft heper sont owh omt he
Art.1 438. Onewh oh asal lowedanot h ert oas sumeappar entowner ship fundsbel ong .
ofper sonalpr oper tyf ort hepur pos eofmaki nganyt rans ferofi t, Ar t.145 6. Ifpr oper t
yi sac qui redt hroug hmi stakeorf r aud, th eper s on
cannot ,ifh er ecei vedt hes umf orwh i
c hapl edg eh asbeenc onst i
tut ed, obt ainingi tis, byf or ceofl aw, cons ider edat rusteeofani mpl iedt rus t
setuph isownt i
tlet odef eatt hepl edg eoft hepr oper ty,madebyt he fort hebenef i
toft heper s onf romwh omt hepr oper t
yc omes .
othert oapl edg eewh or ec eivedt hes amei ng oodf aithandf orv alue. Ar t.145 7. Ani mpl iedt rus tmaybepr ov edbyor alev i
denc e.
Art.1 439. Est oppeli sef fec tiveonl yasbet weent hepar tiest heret oor  
theirs uc ces sor sini nt eres t. TitleVI .-SALES
  CHAPTER1
TitleV. -TRUSTS( n) NATUREANDFORM OFTHECONTRACT
CHAPTER1
GENERALPROVI SI ONS Art.145 8. Byt hec ont rac tofs aleoneoft h ec ont rac tingpar ti
es
obligatesh ims el ft ot rans fert heowner sh i
pandt odel ivera
Art.1
440. Aper sonwh oes tablishesat rustiscal l
edt h
et rus
tor;onein deter mi natet hing , andt heot hert opayt her eforapr icec er t
ainin
whomc onf i
denc ei srepos edasr egar dspr opertyforthebenef i
tof moneyori t
sequi val ent .
anotherper soni sknownast hetr ustee; andt h
eper sonf orwhose Ac ontrac tofs al emaybeabs oluteorc ondi t i
onal .( 1445 a)
benefitthetrus thasbeenc reatedi sr eferredtoast hebenef ic
iary. Art.145 9. Thet h ingmus tbel icitandt h ev endormus th avear ig
htt o
Art.1
441 .Tr
us tsar eei th
erex pr
es sori mpl ied.Expresstrustsare transfert heowner shipt hereofatt het imei ti sdel iver ed. (n)
createdbyt hei ntentionoft h etrustororoft hepar ti
es.Impliedtrust
s Art.146 0. At hingi sdet er minat ewh eni ti spar ticular lydes ignatedor
comei ntobei ngbyoper ationofl aw. physicals egr eg at edf romal lot heroft hes amec las s.
Art.1
442. Thepr incipl
esoft heg ener all awoft rusts,
insofarastheyare Ther equi s i
tet h atat hingbedet ermi nat ei ss at isfi
edi fatt h
et i
met he
notinc onfl
ictwi ththisCode, th
eCodeofCommer ce,theRulesofCour t contrac ti sent er edi nto, thet hingisc apabl eofbei ngmade
ands peciallawsar eh erebyadopt ed. deter mi natewi t houtt henec es sityofaneworf urtherag reement
  betweent hepar ties .(n)
CHAPTER2 Art.146 1.Th ingsh av ingapot entialex i
st enc emaybet h eobj ectoft h
e
EXPRESSTRUSTS contrac tofs al e.
Theef fic acyoft hes aleofamer eh opeorex pec tanc yi sdeemed
Art.1443.Noex pres strustsconc erningani mmov abl
eoranyi nteres
t subjec tt oth ec ondi tiont hatt het hingwi llc omei ntoex i
s t
enc e.
thereinmaybepr ov edbypar olev i
denc e. Thes aleofav ai nh opeorex pec tanc yisv oid. (n)
Art.1444.Nopar ticularwor dsar erequi r
edf orth
ec r
eat ionofan Art.146 2. Theg oodswh ichf ormt hes ubj ec tofac ont rac tofs alemaybe
expresst rust,itbeings uffi
c i
entt h
atat rustiscl
earlyintended. eitherex isti
ngg oods ,ownedorpos ses sedbyt hes el ler,org oodst obe
Art.1445 .
Not r
us tsh al
lfailbec auset hetrusteeappointeddec l
ines manuf ac tured, r ais ed, orac quiredbyt hes elleraf t
ert heper f
ectionof
thedes ignation,unl essthec ontrarys h
oul dappearinth ei nst
rument thec ont ractofs al e, i
nt hisTi t
l ecal l
ed" fut ureg oods .
"
constitutingthet rust. Ther emaybeac ont rac tofs aleofg oods ,wh os eac qui siti
onbyt he
Art.1446 .
Ac c
ept anc ebyt hebenef iciaryisnecessary
.Nev erth
eless,i
f sellerdependsuponac onting encywh ichmayormaynoth appen.( n)
thetrus timpos esnooner ousc onditionupont hebeneficiar y
,his Art.146 3. Thes oleownerofat hingmays ellanundi v i
dedi nterest
acceptanc eshallbepr esumed, ift
h ereisnopr ooftothec ontr
ary. therein. (n)
Art. 146 4. Int hec as eoff ung ibleg oods , th er emaybeas al eofan tobi dh ims elfort oempl oyori nduc eanyper s ont obi dats uc hs aleon
undi videds har eofas pec if icmas s ,thoug ht h es ellerpur por tst os ell hisbeh al forf ort heauc tioneer , toempl oyori nduc eanyper sont obi d
andt hebuy ert obuyadef initenumber ,wei g htormeas ur eoft h eg oods ats uc hs aleonbeh al foft hes ellerorknowi ng lyt ot akeanybi df rom
inth emas s ,andt houg ht h enumber , wei g htormeas ur eoft heg oodsi n thes el leroranyper sonempl oy edbyh i
m. Anys al ec ontr av eni ngt h is
themas si sundet er mi ned. Bys uc has al et hebuy erbec omesowneri n rulemaybet reat edasf raudul entbyt hebuy er . (n)
commonofs uc has h ar eoft hemas sast h enumber ,wei g htormeas ure Art.1 477. Th eowner sh ipoft h et hings olds hal lbet r ans fer redt ot h e
boug htbear st ot h enumber ,wei gh tormeas ur eoft h emas s. Ifth emas s vendeeupont h eac t ualorc ons t ruc tiv edel iver yt her eof .( n)
cont ai nsl es st h ant henumber , wei g htormeas ur eboug ht ,thebuy er Art.1 478. Th epar t i
esmays tipul at et h atowner s hipi nt h et hings hal lnot
bec omest h eowneroft hewh ol emas sandt h es el leri sboundt omake passt ot hepur c has erunt ilh eh asf ul lypai dt h epr ic e.(n)
goodt h edef ic ienc yf romg oodsoft h es ameki ndandqual ity ,unl es sa Art.1 479. Apr omi set obuyands el ladet er mi nat et hingf orapr ice
cont rar yi nt entappear s .(n) certai ni sr ec ipr oc al lydemandabl e.
Art. 146 5 .Th ing ss ubj ec tt oar es ol utor yc ondi tionmaybet heobj ec tof Anac c ept eduni lat er alpr omi set obuyort os el ladet er mi nat et hing
thec ont r ac tofs ale. (n) forapr icec er tai ni sbi ndi ngupont h epr omi s s ori ft h epr omi sei s
Art. 146 6 .Inc ons truingac ont rac tc ont ai ni ngpr ov isionsc har ac ter istic suppor tedbyac ons ider at iondi s tinc tf romt hepr ice. (145 1 a)
ofbot ht hec ont rac tofs al eandoft hec ont rac tofag enc ytos el l,th e Art.1 480. Anyi nj ur yt oorbenef itf romt het hings ol d, aftert hec ont rac t
ess ent ialc laus esoft h ewh ol ei ns truments hal lbec ons ider ed. ( n) hasbeenper fec ted, fr omt h emomentoft h eper fec tionoft hec ont rac t
Art. 146 7. Ac ont rac tf ort h edel iv er yatac er t ainpr iceofanar tic le toth et i
meofdel iver y, sh allbeg ov er nedbyAr tic les1 163t o1 165, and
wh i
c ht h ev endori nt h eor di nar yc our seofh isbus ines smanuf ac tur esor 1262.
proc ur esf ort h eg ener almar ket , wh et hert hes amei sonh andatt h e Thisr ul es hal lappl yt ot h es aleoff ung iblet hi ng s, madei ndependent ly
timeornot , isac ont rac tofs ale, buti ft heg oodsar et obe andf oras ing lepr ic e, orwi th outc ons ider at ionoft h eirwei g ht, number ,
manuf ac tur eds pec ial lyf ort hec us tomeranduponh iss pec ialor der , ormeas ur e.
andnotf ort h eg ener almar ket , iti sac ont rac tf orapi ec eofwor k. (n) Shoul df ung iblet h i
ng sbes ol df orapr icef ix edac c or dingt owei ght,
Art. 146 8. Ift h ec ons ider at ionoft hec ont rac tc ons i
s tspar tlyi nmoney , number ,ormeas ur e, th er is ks h al lnotbei mput edt ot hev endeeunt i
l
andpar tlyi nanot h ert h ing , th et rans ac tions h allbec har ac ter izedby theyh av ebeenwei gh ed, count ed, ormeas ur edanddel iv er ed, unl es s
themani fes tint ent ionoft h epar ties .Ifs uc hi nt ent iondoesnotc lear ly thel at terh asi nc ur redi ndel ay .( 145 2a)
appear , its h allbec ons ider edabar teri ft hev al ueoft het hingg ivenas Art.1 481 . Int h ec ont r ac tofs aleofg oodsbydes cript ionorbys ampl e,
apar toft h ec ons ider at ionex ceedst heamountoft hemoneyori ts thec ont rac tmayber es c indedi ft h ebul koft heg oodsdel iver eddonot
equi val ent ;ot h erwi se, iti sas al e. (1446 a) corres pondwi tht hedes cript ionort hes ampl e, andi fth ec ont rac tbeby
Art. 146 9. Inor dert hatt h epr ic emaybec ons ider edc er tain, its h al lbe sampl easwel lasdes c ript ion, iti snots uf fic ientt h att hebul kofg oods
suffic ientt h ati tbes owi thr ef er enc et oanot hert h ingc ertai n, ort hat corres pondwi tht hes ampl ei fth eydonotal s oc or res pondwi tht he
thedet er mi nat iont her eofbel ef tt ot h ej udg mentofas pec ialper son desc ript ion.
orper s ons . Thebuy ers h allh av ear eas onabl eoppor tuni tyofc ompar ingt hebul k
Shoul ds uc hper sonorper sonsbeunabl eorunwi llingt of ixi t,th e witht h edes c ripti onort hes ampl e. (n)
cont rac ts h allbei nef fic ac ious ,unl es st h epar tiess ubs equent lyag ree Art.1 482. Wh enev erear nes tmoneyi sg i
veni nac ont r actofs al e, i
ts hal
l
upont hepr ice. bec ons ider edaspar toft hepr ic eandaspr oofoft heper fec tionoft he
Ifth et h irdper s onorper s onsac tedi nbadf ai thorbymi stake, th e contr ac t.( 145 4a)
cour tsmayf ixt h epr ice. Art.1 483. Subj ec tt ot hepr ov isionsoft heSt at ut eofFr audsandofany
Wh er es uc ht hirdper sonorper sonsar epr ev ent edf romf ixingt h epr ice otherappl icabl es tat ut e, ac ont r ac tofs al emaybemadei nwr iting ,or
ort er msbyf aul toft h es el lerort h ebuy er ,th epar tynoti nf aul tmay bywor dofmout h ,orpar tlyi nwr itingandpar tl ybywor dofmout h ,or
haves uc hr emedi esag ai ns tt h epar tyi nf aul tasar eal lowedt hes el ler maybei nf er redf r omt h ec onduc toft hepar ties .(n)
ort hebuy er ,ast hec as emaybe. ( 1447a) Art.1 484. Inac ont rac tofs al eofper sonalpr oper tyt hepr iceofwh ichis
Art. 1470. Gr os si nadequac yofpr icedoesnotaf f ec tac ont r ac tofs al e, payabl ei ni ns tal lment s ,thev endormayex er cis eanyoft hef ol l
owi ng
exc eptasi tmayi ndi c at eadef ec tint hec ons ent ,ort hatt hepar ties remedi es :
real lyi nt endedadonat ionors omeot herac torc ont rac t.(n) (1)Ex ac tf ul fi
ll mentoft h eobl ig at ion, shoul dt h ev endeef ai lt opay ;
Art. 1471 .Ift h epr icei ss i mul ated, thes al ei sv oi d, butt heac tmaybe (2)Canc elt h es al e, sh oul dt hev endee' sf ailur et opayc ov ert woor
shownt oh av ebeeni nr eal it yadonat ion, ors omeot h erac torc ont rac t. mor ei ns t all ment s;
(n) (3)For ec los et h ec hat t elmor tgag eont h et h ings ol d, ifoneh asbeen
Art. 1472. Th epr iceofs ec ur ities , grai n, liqui ds , andot h ert h ing ss h all cons titut ed, sh oul dt h ev endee' sf ail uret opayc ov ert woormor e
alsobec ons ider edc er tai n, wh ent hepr icef ixedi st hatwh icht h et h ing instal lment s.Int h isc as e, hes hal lh av enof ur th erac ti
onag ai ns tth e
soldwoul dh av eonadef ini teday ,ori napar ticul arex c hang eor purc has ert or ec ov eranyunpai dbal anc eoft hepr ice. Anyag r eement
mar ket , orwh enanamounti sf ix edabov eorbel owt hepr iceons uc h toth ec ont r arys h al lbev oid. (145 4- A- a)
day ,ori ns uc hex c hang eormar ket , prov ideds ai damountbec er tai n. Art.1 485 . Th epr ec edi ngar tic les h al lbeappl iedt oc ontr ac tspur por t
ing
(1448) tobel eas esofper sonalpr oper tywi thopt iont obuy , wh ent hel ess or
Art. 1473. Th ef ix i
ngoft hepr icec annev erbel ef tt ot hedi sc retionof hasdepr iv edt h el es seeoft h epos ses si
onorenj oy mentoft h et h i
ng .
oneoft hec ont rac tingpar ties .Howev er , ift hepr icef i
x edbyoneoft h e (1454- A- a)
par tiesi sac c ept edbyt h eot h er ,th es al ei sper fec ted. (1449 a) Art.1 486 . Int h ec as er ef er redt oi nt wopr ec edi ngar ticl
es ,as tipul ation
Art. 1474. Wh er et hepr ic ec annotbedet er mi nedi nac cor danc ewi tht he thatt h ei ns tal lment sorr ent spai ds h allnotber etur nedt ot h ev endee
prec edi ngar ticles ,ori nanyot hermanner ,th ec ont rac ti si nef fic ac ious. orles sees hal lbev al idi ns of arast h es amemaynotbeunc ons c i
onabl e
Howev er , i
ft het hingoranypar tt her eofh asbeendel iver edt oand undert h ec ircums tanc es .(n)
appr opr iat edbyt hebuy erh emus tpayar eas onabl epr icet her ef or . Art.1 487. Th eex pens esf ort h eex ec ut i
onandr eg istrat i
onoft h es al e
Wh ati sar eas onabl epr ic ei saques t i
onoff ac tdependentont h e shallbebor nebyt hev endor ,unl es st her ei sas t i
pul ationt ot he
circums tanc esofeac hpar t icularc as e. (n) contr ar y.( 145 5 a)
Art. 1475 .Th ec ont rac tofs al ei sper fec t edatt hemomentt h erei sa Art.1 488. Th eex pr opr iat i
onofpr oper tyf orpubl icus ei sg ov er nedby
meet ingofmi ndsupont h et hingwh ichi st h eobj ec toft hec ont rac tand spec iall aws .(1 45 6)
upont hepr ice.  
Fromt hatmoment ,th epar tiesmayr ec ipr oc al lydemandper for manc e, CHAPTER2
subj ec tt ot hepr ovis ionsoft hel awg ov er ni ngt h ef or mofc ont rac ts . CAPACI TYTOBUYORSELL
(145 0a)
Art. 1476 .Int hec as eofas alebyauc tion: Art. 1489.Allpers onswh oar eauth oriz
edi nthisCodet oobligate
(1)Wh er eg oodsar eputupf ors al ebyauc tioni nl ots ,eac hl oti st h e thems elves,mayent erintoacont ractofs ale,sav
ingthemodi f
ications
subj ec tofas epar atec ont r ac tofs ale. cont ainedi nthef ollowi
ngar ti
c l
es .
(2)As al ebyauc tioni sper fec tedwh ent h eauc t ioneerannounc esi ts Wh er enec essari
esar ethoses oldanddel i
veredtoami nororot her
per fec tionbyt h ef al loft heh ammer , ori not herc us tomar ymanner . per sonwi thoutcapac i
tytoac t
, hemus tpayar easonableprice
Unt ils uc hannounc ementi smade, anybi ddermayr et rac th isbi d; and ther efor.Nec essariesar ethoser eferredtoi nArti
cle290.(1457a)
theauc tioneermaywi th dr awt h eg oodsf romt hes al eunl es st h e Art. 1490.Theh usbandandt hewi fec annotsellpropertytoeac hot h
er ,
auc tionh asbeenannounc edt obewi th outr es er ve. exc ept :
(3)Ar igh tt obi dmayber es er vedex pr es s lybyoronbeh alfoft h e (1)Wh enas eparationofpr opertywasag reeduponi nthemar r
iage
seller , unl es sot h erwi s epr ov idedbyl aworbys tipul at i
on. settl ement s;or
(4)Wh er enot iceh asnotbeeng iv ent hatas al ebyauc t
i oni ss ubj ec tt o (2)Wh ent herehasbeenaj udi
c i
als epar at
ionorpr opertyunderAr ticl
e
ar igh tt obi donbeh al foft hes el ler ,its h al lnotbel awf ulf ort h es eller 191. (1458a)
Art.1491 .Th ef ol lowingper s onsc annotac quirebypur c has e,ev enata (146 4)
publ i
corj udi cialauc tion, eitheri nper sonort h roug ht hemedi at i
onof Art. 15 02. Wh eng oodsar edel iver edt ot hebuy er  "ons al eorr et urn" to
anot her: givet h ebuy eranopt iont or et ur nt h eg oodsi ns teadofpay ingt hepr ice,
(1)Th eg uar di an, thepr oper tyoft heper s onorper sonswh omaybe theowner s hippas s est ot h ebuy erofdel iver y ,buth emayr ev es tt he
underh isg uar dians hip; owner s hipi nt h es el lerbyr et ur ningort ender ingt h eg oodswi t hint h e
(2)Ag ent s ,th epr oper t ywh oseadmi nistrat i
onors alemayh avebeen timef ix edi nt hec ont rac t, or , i
fnot imeh asbeenf ix ed, wi thina
entrus tedt ot hem, unl esst hec ons entoft h epr incipalh asbeeng iven; reas onabl et ime. (n)
(3)Ex ec ut or sandadmi nistrator s
, thepr oper tyoft h ees t ateunder Wh eng oodsar edel iv eredt ot h ebuy eronappr ovaloront rialoron
admi nistr at ion; satis fac tion, orot h ers imi lart er ms , th eowner sh i
pt h er ei npas sest o
(4)Publ i
cof ficer sandempl oyees ,t hepr oper t yoft heSt at eorofany thebuy er :
subdiv i
s iont her eof ,orofanyg over nment -ownedorc ontr olled (1)Wh enh es ig ni fiesh isappr ov alorac c ept anc et ot h es el lerordoes
corpor ation, ori nstitut i
on, theadmi nistrationofwh ichh asbeen anyot h erac tadopt ingt h et r ans ac t ion;
intrustedt ot hem; thispr ov isi
ons hal lappl yt oj udg esandg ov ernment (2)I fh edoesnots ig ni fyh isappr ov alorac c ept anc et ot hes el ler ,but
exper tswh o, inanymannerwh at s
oev er,takepar tint h es ale; retai nst heg oodswi th outg iv ingnot iceofr ej ec tion, th eni fat imeh as
(5)Jus tices , judg es ,pr osec utingat tor neys ,clerksofs uper iorand beenf ixedf ort her et ur noft h eg oods , ont heex pi rat ionofs uc ht ime,
inferiorc our ts, andot h erof fi
c ersandempl oy eesc onnec tedwi thth e and, i
fnot imeh asbeenf ix ed, ont h eex pi rat ionofar eas onabl et ime.
admi nistr at ionofj us tice,t hepr oper tyandr i
g htsi nlit i
gat ionorl ev i
ed Wh ati sar eas onabl et imei saques tionoff ac t.(n)
uponanex ec utionbef oret hec our twi thinwh os ej ur i
s dictionor Art. 15 03. Wh ent her ei sac ont rac tofs al eofs pec ificg oods ,th es el ler
territ
or yt h eyex er ciset h
ei rres pect ivefunc tions ;
th i
spr oh i
bition may , byt het er msoft hec ont rac t,r es er v et h er ightofpos s es sionor
includest h eac tofac qui ringbyas s ignmentands hallappl yt olawy ers, owner s hipi nt h eg oodsunt ilc er tainc ondi tionsh av ebeenf ul filled. Th e
withres pec tt ot h epr oper tyandr i
g htswh ichmaybet h eobj ec tofany rightofpos ses sionorowner s h ipmaybet husr es er vednot wi th standi ng
lit
igat i
oni nwh i
c hth eymayt akepar tbyv irtueoft heirpr of ess i
on. thedel iver yoft h eg oodst ot h ebuy erort oac ar ri
erorot h erbai l
eef or
(6)Anyot her ss pec iallydi squal if
iedbyl aw. (
1 45 9a) thepur pos eoft r ans mi ss iont ot h ebuy er .
Art.1492. Th epr oh i
bi tionsi nth etwopr ecedi ngar ti
c l
esar eappl i
cable Wh er eg oodsar es hipped, andbyt hebi llofl adi ngt h eg oodsar e
tos alesi nl eg alr edempt i
on, c ompr omi sesandr enunc i
at ions .(n) del i
v er abl et ot hes el lerorh isag ent ,ort ot heor deroft h es el lerorof
  hisag ent , th es el lert her ebyr es er vest heowner shipi nt heg oods .But ,if
CHAPTER3 exc eptf ort h ef or moft hebi llofl adi ng , theowner sh ipwoul dh av e
EFFECTSOFTHECONTRACT pas sedt ot hebuy erons hipmentoft h eg oods ,th es el ler '
spr oper tyi n
WHENTHETHI NGSOLDHASBEENLOST theg oodss hal lbedeemedt obeonl yf ort hepur pos eofs ec ur i
ng
per for manc ebyt hebuy erofh isobl igat ionsundert h ec ont rac t.
Art.1493. Ifatt h etimet h econt ractofs al
ei sperfected,thethingwh ic
h Wh er eg oodsar es hipped, andbyt hebi llofl adi ngt h eg oodsar e
istheobj ec toft hec ontracth asbeenent i
relylost
, t
hec ontractshall del i
v er abl et oor deroft hebuy erorofh isag ent ,butpos ses s ionoft h e
bewit houtanyef fec t. billofl adi ngi sr et ai nedbyt hes el lerorh i
sag ent , th es ellert h ereby
Butift het hings houldh avebeenl ostinpar tonly,
t h
ev endeemay reser v esar igh tt ot hepos s es sionoft h eg oodsasag ai ns tt hebuy er .
choos ebet weenwi thdrawingf r omt hec ontractanddemandi ngthe Wh er et hes el lerofg oodsdr awsont h ebuy erf ort hepr iceand
remai ningpar t,pay ingitspric ei npr oporti
ont othetotalsumag reed trans mi tst h ebi llofex ch ang eandbi l lofl adi ngt og et hert ot hebuy er
upon. (146 0a) tos ec ur eac c ept anc eorpay mentoft hebi llofex ch ang e, th ebuy eri s
Art.1494. Wh ereth epar ti
espur portas aleofs pecif
icgoods ,andt h
e boundt or et ur nt hebi llofl adi ngi fh edoesnoth onort h ebi llof
goodswi thoutt h eknowl edg eoft hes ell
erh aveper i
shedinpar torh ave exc hang e, andi fh ewr ong f ull yr et ai nst h ebi llofl adi ngh eac qui resno
whollyori namat erialpar tsodet erioratedinqual i
tyast obe addedr igh tt her eby . If,h owev er , thebi llofl adi ngpr ov idest h att he
substant ial l
yc hang edinc harac ter,thebuyermayath isoptiont r
eat goodsar edel iv er abl et ot h ebuy erort ot heor deroft h ebuy er ,ori s
thesal e: indor s edi nbl ank, ort ot h ebuy erbyt h ec ons igneenamedt her ein, one
(1)Asav oi ded; or wh opur ch as esi ng oodf ai th, forv al ue, thebi l lofl adi ng ,org oodsf rom
(2)Asv alidi nal loft heex is
tingg oodsori ns omuc hthereofash ave thebuy erwi l lobt ai nt h eowner s hipi nt heg oods ,al thoug ht hebi l
lof
notdet erior ated, andasbi ndi ngt hebuy ertopayt heag r
eedpr i
cef or exc hang eh asnotbeenh onor ed, pr ov idedt hats uc hpur c has erh as
thegoodsi nwh icht heowner s hipwi llpas s
,ifthesalewasdi vi
sibl
e. (n) recei v eddel iv er yoft hebi llofl adi ngi ndor s edbyt hec ons igneenamed
  ther ein, oroft h eg oods , wi th outnot ic eoft hef ac tsmaki ngt h et rans fer
CHAPTER4 wrong ful .( n)
OBLIGATI ONSOFTHEVENDOR Art. 15 04. Unl es sot her wi seag r eed, th eg oodsr emai natt hes el ler'sr isk
SECTI ON1 .-Gener alPr ov i
sions unt i
lt h eowner sh ipt h er ei ni st rans fer redt ot hebuy er ,butwh ent he
owner s hipt her eini st rans fer r edt ot h ebuy ert h eg oodsar eatt h e
Art.1
495 .
Thevendorisboundtot rans f
ertheowner s
hipofanddeli
ver, buy er '
sr iskwh et h erac tualdel iver yh asbeenmadeornot ,ex c eptt hat:
aswel laswarr
antthet hi
ngwhi
c hist heobjectofthesal
e.(146
1a) (1)Wh eredel iver yoft heg oodsh asbeenmadet ot hebuy erort oa
Art.1
496 .
Theownershipofthethings oldi
sac quir
edbythevendeefrom baileef ort hebuy er ,inpur s uanc eoft h ec ont r ac tandt h eowner sh i
pi n
themomenti ti
sdeliveredtohimi nanyoft heway sspec
ifi
edin theg oodsh asbeenr et ainedbyt hes el lermer el yt os ec ure
Arti
cles1497to1501,orinanyothermanners igni
fyi
nganagreement per for manc ebyt hebuy erofh isobl igat ionsundert h ec ont rac t, the
thatthepossessi
onistransf
erredf romt hevendortothevendee.
(n) goodsar eatt h ebuy er 'sr is kf romt h et imeofs uc hdel iver y;
  (2)Wh er eac tualdel iver yh asbeendel ay edt h roug ht h ef aul tofei th er
SECTION2. -Deli
veryoftheThingSol d thebuy erors el lert heg oodsar eatt her iskoft hepar tyi nf aul t.(n)
Art. 15 05 .Subj ec tt ot h epr ov is ionsoft h isTi tle, wh er eg oodsar es ol dby
Art.1497. Th ethings oldshallbeunder s toodasdel iver ed, wheni tis aper s onwh oi snott heownert h er eof ,andwh odoesnots el lt hem
placedi nt h
ec ontrolandpos ses sionoft hev endee. (1 462a) underaut h or ityorwi tht hec ons entoft heowner ,th ebuy erac qui resno
Art.1498. Wh ent hes aleismadet hroug hapubl icinstr ument ,
t he bet tert itlet ot h eg oodst h ant hes el lerh ad, unl es st h eowneroft he
execut iont hereofs hallbeequi val entt ot hedel iv
er yoft het hingwh ic
h goodsi sbyh isc onduc tpr ec ludedf romdeny ingt hes el ler 'saut horit yto
istheobj ectoft hec ontract,i
ff romt hedeedt hec ontr arydoesnot sell.
appearorc annotc lear l
ybei nfer red. Not h ingi nt h isTi tle, h owev er ,s hal laf fec t:
Withr eg ardt omov abl eproper t
y, itsdel iver ymayal sobemadebyt he (1)Th epr ov is ionsofanyf ac t or s' ac t, rec or di ngl aws , oranyot her
deliveryoft hekey soft heplac eordepos itorywh er ei tiss toredor prov is ionofl awenabl ingt heappar entownerofg oodst odi s pos eof
kept.( 1463a) themasi fh ewer et h et rueownert her eof ;
Art.1499. Th edel i
veryofmov ablepr oper tymayl i
kewi sebemadebyt he (2)Th ev al idi tyofanyc ont rac tofs al eunders tat ut or ypowerofs aleor
mer ec ons entorag reementoft hec ontrac tingpar ties ,ifth eth i
ngs old undert heor derofac our tofc ompet entj ur isdi c t
ion;
cannotbet ransferredt othepos ses sionoft h evendeeatt het imeof (3)Pur ch as esmadei namer c hant 'ss tor e, ori nf ai rs, ormar ket s,in
thesal e, orifth elatteralreadyh adi ti nh i
spos ses sionf oranyot h er acc or danc ewi tht heCodeofCommer c eands pec iall aws .(n)
reason. ( 1463a) Art. 15 06 .Wh er et hes el lerofg oodsh asav oi dabl et itlet her et o, buth i
s
Art.1500. Ther emayal sobet radition  cons titutumpos ses sorium. (n) tit
leh asnotbeenav oidedatt h et imeoft hes al e, th ebuy erac qui resa
Art.1501 .Withr espec ttoincorpor ealpr oper ty,thepr ov i
sionsoft he goodt itlet ot h eg oods ,pr ov idedh ebuy st hemi ng oodf aith ,forv al ue,
fir
stpar ag r
aphofar ticl
e1 498s hal lgov ern. Inanyot herc asewh erein andwi thoutnot iceoft h es el ler 'sdef ec toft itle. (n)
saidpr ov isi
onsar enotappl icable, thepl ac i
ngoft het itlesof Art. 15 07. Adoc umentoft itlei nwh ic hi ti ss t at edt hatt heg oods
owner sh ipint hepos sessionoft hev endeeort heus ebyt hev endeeof refer redt ot h er ei nwi llbedel iver edt ot hebear er ,ort ot h eor derof
hisrights ,withthev endor '
scons ent ,sh allbeunder stoodasadel i
very. anyper s onnamedi ns uc hdoc umenti saneg ot iabl edoc umentoft i
t le.
(n) (1)Th att h edoc umenti sg enui ne;
Ar t. 15 08. Aneg ot iabl edoc umentoft it lemaybeneg ot i
at edbydel ivery: (2)Th ath eh asal eg alr igh tt oneg ot iat eort r ans feri t;
(1)Wh er ebyt het er msoft h edoc umentt hec arrier ,war eh ous emanor (3)Th ath eh asknowl edg eofnof ac twh ichwoul di mpai rt h ev al idi t
yor
ot herbai leei ssui ngt h es ameunder takest odel ivert heg oodst ot he wor thoft hedoc ument ;and
bear er ;or (4)Th ath eh asar igh ttot rans fert het it let ot h eg oodsandt hatt he
(2)Wh er ebyt het er msoft h edoc umentt h ec ar rier ,war eh ous emanor goodsar emer ch ant abl eorf itf orapar ticul arpur pos e, wh enev ers uc h
ot herbai leei ssui ngt h es ameunder takest odel ivert heg oodst ot he war r ant ieswoul dh av ebeeni mpl iedi ft h ec ont rac toft h epar tiesh ad
or derofas pec i
f iedper s on, ands uchper sonoras ubs equentendor see beent ot rans ferwi th outadoc umentoft it let heg oodsr epr es ent ed
oft hedoc umenth asi ndor sedi ti nbl ankort ot hebear er . ther eby .(n)
Wh er ebyt h et er msofaneg ot iabl edoc umentoft itlet heg oodsar e Art .1 517. Th eendor s ementofadoc umentoft itles h al lnotmaket he
del iv er abl et obear erorwh ereaneg ot iabl edoc umentoft itleh asbeen endor s erl iabl ef oranyf ailur eont hepar toft hebai leewh oi s suedt he
indor s edi nbl ankort obear er , anyh ol dermayi ndor set h es amet o doc umentorpr ev iousendor ser st h er eoft of ul fillt h ei rr es pec tive
hims el fort oanys pec ifiedper s on, andi ns uc hc as et h edoc uments hall obl igat ions . (n)
ther eaf t erbeneg ot iat edonl ybyt h eendor s ementofs uc hendor s ee. (n) Art .1 518. Th ev alidi tyoft heneg ot iat ionofaneg ot iabl edoc umentof
Ar t. 15 09. Aneg ot iabl edoc umentoft it lemaybeneg ot i
at edbyt he titlei snoti mpai redbyt hef ac tt hatt h eneg ot iat ionwasabr eac hof
endor s ementoft h eper s ont owh os eor dert h eg oodsar ebyt h et er ms dut yont h epar toft h eper s onmaki ngt heneg ot iat ion, orbyt hef ac t
oft hedoc umentdel iv erabl e. Suc hendor sementmaybei nbl ank, t o thatt heowneroft h edoc umentwasdepr ivedoft h epos ses s ionoft he
bear erort oas pec ifiedper s on. I findor sedt oas pec ifiedper son, it samebyl os s, thef t ,fraud, ac cident , mi s take, dur es s , orc onv er s ion, if
maybeag ai nneg ot iat edbyt heendor sementofs uc hper soni nbl ank, theper s ont owh omt h edoc umentwasneg ot iat edoraper sont owh om
tobear erort oanot hers pec ifiedper son. Subs equentneg otiat ionsmay thedoc umentwass ubs equent lyneg ot iat edpai dv al uet h eref ori ng ood
bemadei nl ikemanner .( n) fait hwi t houtnot ic eoft hebr eac hofdut y ,orl os s ,t hef t ,fraud, ac cident ,
Ar t. 15 10. Ifadoc umentoft it lewh i chc ont ai nsanunder taki ngbya mi stake, dur es sorc onv er sion. ( n)
car r ier ,war eh ous emanorot herbai leet odel i
vert h eg oodst obear er , Art .1 519 .Ifg oodsar edel iver edt oabai leebyt heownerorbyaper s on
toas pec ifiedper s onoror derofas pec ifiedper sonorwh ic hc ont ai ns wh os eac ti nc onv ey ingt h et itlet ot h emt oapur ch as eri ng oodf aithf or
wor dsofl i kei mpor t, haspl ac eduponi tt hewor ds  
"notneg ot iabl e," val uewoul dbi ndt heownerandaneg ot iabl edoc umentoft it lei s
"non- neg ot iabl e" ort hel ike, suc hdoc umentmaynev er th eles sbe issuedf ort h emt h eyc annott her eaf ter ,wh ilei npos s es s ionofs uc h
neg ot iat edbyt h eh ol derandi saneg ot iabl edoc umentoft i tlewi t hin bai lee, beat tac hedbyg ar ni shmentorot h er wi s eorbel ev i
edunderan
themeani ngoft hisTi t l
e. Butnot hingi nt hisTi tlec ont aineds h allbe ex ec uti onunl es st h edoc umentbef irs ts ur render edt ot hebai leeori ts
cons tr uedasl imi t ingordef ini ngt heef fec tupont heobl igat ionsoft he neg ot iat ionenj oined. Th ebai lees hal li nnoc as ebec ompel ledt o
car r ier ,war eh ous eman, orot herbai leei ssui ngadoc umentoft itleor del iverupt h eac tualpos ses sionoft h eg oodsunt ilt h edoc umenti s
pl ac ingt h er eont h ewor ds  "notneg ot iabl e," 
 "non- neg ot iabl e, " 
ort h e sur render edt oh imori mpoundedbyt h ec our t. (n)
like. (n) Art .1 520. Ac redi torwh os edebt ori st h eownerofaneg ot iabl e
Ar t. 15 11. Adoc umentoft itl ewh ic hi snoti ns uc hf or mt h ati tc anbe doc umentoft itles hal lbeent itledt os uc hai df romc our tsof
neg ot iat edbydel iver ymaybet rans fer r edbyt heh ol derbydel iver yt oa appr opr iat ej ur is dic tionbyi njunc tionandot h er wi sei nat tac h ings uc h
pur c h as erordonee. Anon- neg ot i
abl edoc umentc annotbeneg otiat ed doc umentori ns at i
s fyingt hec lai mbymeanst her eofasi sal lowedat
andt h eendor sementofs uc hadoc umentg ivest h et rans f er eeno lawori nequi tyi nr eg ar dt opr oper tywh ic hc annotr eadi lybeat tac h ed
addi tionalr i
g ht.( n) orl ev ieduponbyor di nar yl eg alpr oc es s .( n)
Ar t. 15 12. Aneg ot iabl edoc umentoft itl emaybeneg ot i
at ed: Art .1 521 .Wh et h eri ti sfort hebuy ert ot akepos ses sionoft h eg oodsor
(1)Byt heownert h er ef or ; or oft h es ellert os endt hemt ot hebuy eri saques tiondependi ngi neac h
(2)Byanyper sont owh omt hepos ses s ionorc us todyoft hedoc ument cas eont hec ont rac t,ex pr es sori mpl ied, bet weent hepar ties .Apar t
hasbeenent rust edbyt heowner , if,byt het er msoft h edoc umentt h e fromanys uc hc ont r ac t,ex pr es sori mpl ied, orus ag eoft radet ot he
bai leei ss uingt hedoc umentunder t
akest odel ivert h eg oodst ot h e cont r ary ,t hepl ac eofdel iver yi st h es el ler '
spl ac eofbus ines si fh eh as
or deroft h eper s ont owh omt h epos s es s ionorc us todyoft h edoc ument one, andi fnoth isr es idenc e; buti nc as eofac ont r ac tofs al eof
hasbeenent rust ed, ori fatt h et i
meofs uc hent r us tingt hedoc umenti s spec ificg oods ,wh icht ot h eknowl edg eoft h epar tieswh ent h ec ont rac t
ins uc hf or mt hati tmaybeneg ot iatedbydel ivery .(n) ort h es al ewasmadewer ei ns omeot h erpl ac e, th ent hatpl ac ei st he
Ar t. 15 13. Aper sont owh omaneg ot iabl edoc umentoft itleh asbeen plac eofdel iv er y.
dul yneg ot iat edac qui r est h er eby : Wh er ebyac ont rac tofs al et hes el leri sboundt os endt h eg oodst ot h e
(1)Suc ht itlet ot heg oodsast h eper sonneg ot i
at ingt h edoc umentt o buy er ,butnot imef ors endi ngt hemi sf ix ed, th es el leri sboundt os end
himh adorh adabi lityt oc onv eyt oapur ch as eri ng oodf ai thf orv al ue themwi th i
nar eas onabl et ime.
andal sos uc ht itlet ot heg oodsast heper sont owh os eor dert h eg oods Wh er et heg oodsatt h et imeofs al ear ei nt hepos ses sionofat h ird
wer et obedel i
ver edbyt het er msoft hedoc umenth adorh adabi li
tyt o per s on, t hes el lerh asnotf ul filledh isobl ig at iont odel ivert ot hebuy er
conv eyt oapur c has eri ng oodf aithf orv al ue; and unl es sandunt ils uc ht hirdper s onac knowl edg est ot hebuy ert hath e
(2)Th edi r ec tobl i gat ionoft h ebai l
eei ss uingt h edoc umentt oh ol d hol dst h eg oodsont h ebuy er 'sbeh al f.
pos ses sionoft heg oodsf orh imac cor di ngt ot het er msoft hedoc ument Demandort enderofdel iver ymaybet r eat edasi nef fec t ualunl es s
asf ul lyasi fs uc hbai leeh adc ont rac t eddi rec tlywi thh im. ( n) madeatar eas onabl eh our . Wh ati sar eas onabl eh ouri saques tionof
Ar t. 15 14. Aper sont owh omadoc umentoft itleh asbeent rans fer red, fac t.
butnotneg otiat ed, ac qui r est her eby ,asag ains tt het rans fer or ,the Unl es sot her wi s eag r eed, theex pens esofandi nc ident alt oput tingt he
titlet ot heg oods , subj ec tt ot het er msofanyag reementwi tht he goodsi nt oadel iver abl es tat emus tbebor nebyt hes eller .( n)
trans fer or . Art .1 522. Wh er et h es ellerdel iver st ot hebuy eraquant ityofg oodsl es s
Ift h edoc umenti snon- neg ot iabl e, suc hper s onal soac qui rest h er ight thanh ec ont r ac tedt os el l,th ebuy ermayr ej ec tt h em, buti ft hebuy er
tonot ifyt h ebai leewh oi ss uedt hedoc umentoft h et r ans fert h ereof , ac cept sorr et ai nst h eg oodss odel iv er ed, knowi ngt h att hes elleri s
andt h er ebyt oac qui ret h edi rec tobl ig at ionofs uc hbai l
eet oh old notg oi ngt oper f or mt hec ont rac ti nf ul l, hemus tpayf ort hematt he
pos ses sionoft heg oodsf orh imac cor di ngt ot het er msoft hedoc ument . cont r ac tr at e. If ,h owev er ,th ebuy erh asus edordi spos edoft heg oods
Pr iort ot henot i
f icat iont os uc hbai leebyt h et rans fer orort rans fer ee del iver edbef or eh eknowst h att h es el leri snotg oingt oper for mh is
ofanon- neg ot i
abl edoc umentoft itle, th et itleoft het rans fer eet ot he cont r ac ti nf ul l, thebuy ers h allnotbel iabl ef ormor et hant h ef ai r
goodsandt h er igh tt oac qui ret heobl ig at ionofs uc hbai l eemaybe val uet oh imoft h eg oodss or ec ei v ed.
def eat edbyt h el ev yofanat tac hmentofex ecut ionupont heg oodsbya Wh er et hes el lerdel iver st ot hebuy eraquant ityofg oodsl ar gert han
credi toroft het r ans fer or ,orbyanot ific ationt os uc hbai leebyt he hec ont r ac tedt os ell ,thebuy ermayac ceptt h eg oodsi nc ludedi nt h e
trans fer ororas ubs equentpur c has erf romt het rans f erofa cont r ac tandr ej ec tt h er es t. I
ft h ebuy erac c ept st hewh oleoft h eg oods
subs equents al eoft heg oodsbyt het rans fer or.( n) sodel i
v er edh emus tpayf ort hematt hec ont r ac tr at e.
Ar t. 15 15 .Wh ereaneg ot iabl edoc umentoft itlei st r ans fer redf orv al ue Wh er et hes el lerdel iver st ot hebuy ert h eg oodsh ec ont rac t edt os el l
bydel iv er y,andt heendor s ementoft h et rans ferori ses s ent ialf or mi xedwi t hg oodsofadi ff
er entdes c ri pt ionnoti nc ludedi nt h ec ont rac t,
neg ot iat ion, t
h et r ans f er eeac qui resar ightag ains tt het rans ferort o thebuy ermayac ceptt heg oodswh ic har ei nac c or danc ewi tht h e
compelh i
mt oendor set h edoc umentunl es sac ont rar yi nt ent ion cont r ac tandr ej ec tt h er es t.
appear s .Th eneg ot iat ions hal lt akeef fec tasoft het imewh ent he Int hepr ec edi ngt wopar ag raph s, ift h es ubj ec tmat t eri si ndi vis i
bl e, the
endor s ementi sac tual lymade. (n) buy ermayr ej ec tt hewh oleoft h eg oods .
Ar t. 15 16 .Aper sonwh of orv al ueneg ot iat esort rans fer sadoc umentof Thepr ov is ionsoft h isar t
ic lear es ubj ec tt oanyus ag eoft rade, spec ial
titlebyendor s ementordel iver y, includi ngonewh oas sig nsf orv al uea ag reement , orc our s eofdeal ingbet weent h epar t i
es .( n)
clai ms ec ur edbyadoc umentoft i
t l
eunl es sac ont rar yint ent ion Art .1 523. Wh er e, inpur suanc eofac ont r ac tofs al e, t hes el leri s
appear s ,war rant s : aut hor iz edorr equi r edt os endt heg oodst ot hebuy er ,del iver yoft h e
goodst oac ar rier, wh et hernamedbyt h ebuy erornot , fort hepur pos e thebuy er ,orh isag enti nt h atbeh al f,takesdel iver yoft hemf roms uc h
oft rans mi ssiont ot h ebuy eri sdeemedt obeadel i ver yoft h eg oodst o car rierorot h erbai lee;
thebuy er , ex cepti nt h ec as epr ov idedf ori nAr ticle1 503, firs t,s ec ond (2)I ft heg oodsar er ejec tedbyt hebuy er , andt hec ar rierorot h er
andt h irdpar ag raph s, orunl es sac ont rar yi nt entappear s. bai leec ont inuesi npos s es s ionoft h em, ev eni ft h es el lerh asr ef us ed
Unl es sot h er wi seaut hor izedbyt h ebuy er ,th es el lermus tmakes uc h tor ec ei vet hembac k.
cont rac twi tht hec ar rieronbeh al foft h ebuy erasmayber eas onabl e, Goodsar enol ong eri nt r ans itwi th int hemeani ngoft hepr ec edi ng
havi ngr eg ar dt ot henat ur eoft h eg oodsandt h eot herc ircums tanc es artic le:
oft hec as e. Ift hes ell eromi ts ot odo, andt h eg oodsar el os tor (1)I ft hebuy er ,orh isag enti nt hatbeh al f, obt ai nsdel iver yoft he
damag edi nc our seoft rans it,t hebuy ermaydec linet ot reatt h e goodsbef or et h eirar r ivalatt heappoi nt eddes tinat ion;
deliv er yt ot hec ar rierasadel iver yt oh ims el f ,ormayh ol dt h es eller (2)I f ,af t ert hear rivaloft heg oodsatt heappoi nt eddes t i
nat ion, th e
respons ibl ei ndamag es . car rierorot h erbai leeac knowl edg est ot h ebuy erorh isag entt h ath e
Unl es sot h er wi seag reed, wh er eg oodsar es entbyt hes el lert ot he holdst h eg oodsonh isbeh al fandc ont inuesi npos ses sionoft h emas
buyerunderc ircums t anc esi nwh icht hes el lerknowsoroug h ttoknow bai leef ort hebuy erorh isag ent ; andi ti si mmat er ialt h atf ur ther
thati ti sus ualt oi ns ur e, thes el lermus tg ives uc hnot icet ot hebuy er des t inat ionf ort heg oodsmayh av ebeeni ndi c at edbyt hebuy er ;
asmayenabl eh imt oi ns ur et h emdur ingt hei rt rans it, and, ift hes el ler (3)I ft hec ar rierorot h erbai leewr ong full yr ef us est odel iv ert heg oods
failst odos o, theg oodss hallbedeemedt obeath i
sr iskdur ings uc h tot h ebuy erorh i
sag enti nt h atbeh alf.
trans it .(n) Ifth eg oodsar edel iver edt oas h ip, frei gh tt rai n, truc k, orai r plane
Art. 15 24. Th ev endors hal lnotbeboundt odel i
v ert het hings ol d, ift he char t er edbyt h ebuy er ,i ti saques t i
ondependi ngont h ec ircums tanc es
vendeeh asnotpai dh imt hepr ic e, ori fnoper i
odf ort h epay menth as oft h epar ticul arc as e, wh et h ert h eyar ei nt h epos s es sionoft hec ar rier
beenf ixedi nt hec ont r ac t.(146 6) ass uc horasag entoft h ebuy er .
Art. 15 25 .Th es el lerofg oodsi sdeemedt obeanunpai ds el lerwi th in Ifpar tdel iv er yoft h eg oodsh asbeenmadet ot h ebuy er , orh isag enti n
themeani ngoft h isTi tle: thatbeh al f, th er emai nderoft h eg oodsmaybes toppedi nt rans itu,
(1)Wh ent h ewh ol eoft hepr ic eh asnotbeenpai dort ender ed; unles ss uc hpar tdel iver yh asbeenunders uc hc irc ums tanc esast o
(2)Wh enabi llofex c hang eorot herneg ot iabl ei ns trumenth asbeen showanag reementwi tht h ebuy ert og iveuppos s es sionoft hewh oleof
recei v edasc ondi tionalpay ment , andt hec ondi tiononwh i
c hi twas theg oods . (n)
recei v edh asbeenbr okenbyr eas onoft h edi s honoroft h ei ns trument , Art .1 532. Th eunpai ds el lermayex er ciseh isr ig h tofs toppag ei n
thei ns olv enc yoft hebuy er ,orot h er wi se. trans ituei therbyobt ai ni ngac tualpos ses s ionoft heg oodsorbyg i
v i
ng
InAr tic les1 525t o1 5 35t het er m  "s eller " inc ludesanag entoft h es eller not iceofh isc lai mt ot h ec ar rierorot herbai leei nwh os epos s es sion
towh omt hebi llofl adi ngh asbeeni ndor sed, orac ons ignororag ent theg oodsar e. Suc hnot icemaybeg ivenei thert ot heper soni nac tual
wh oh ash ims el fpai d, ori sdi r ec tl yr es pons ibl ef ort h epr ic e, orany pos s es s ionoft h eg oodsort oh ispr inc ipal .Int h el at terc as et henot ic e,
otherper s onwh oi si nt hepos itionofas eller .(n) tobeef fec tual , mus tbeg ivenats uc ht imeandunders uc h
Art. 15 26 .Subj ec tt ot h epr ov isionsoft h isTi tle, not wi ths tandi ngt hat circums tanc est hatt h epr inc ipal ,byt heex er cis eofr eas onabl e
theowner sh ipi nt heg oodsmayh av epas sedt ot h ebuy er ,th eunpai d dilig enc e, maypr ev entadel iv eryt ot hebuy er .
sellerofg oods ,ass uc h,h as: Wh ennot ic eofs toppag ei nt rans itui sg iv enbyt hes ellert ot hec ar rier,
(1)Al ienont heg oodsorr i
g htt or et aint hemf ort h epr icewh ileh ei si n orot h erbai leei npos ses sionoft heg oods ,hemus tr edel i
v ert heg oods
pos s es sionoft hem; to, orac c or dingt ot h edi rec tionsof ,th es eller . Th eex pens esofs uc h
(2)I nc as eoft h ei ns ol venc yoft h ebuy er , ar ig htofs toppi ngt h eg oods del iver ymus tbebor nebyt hes el l
er . If,howev er ,aneg ot iabl e
intr ans ituaf terh eh aspar tedwi tht h epos s es sionoft h em; doc umentoft it ler epr es ent ingt heg oodsh asbeeni ss uedbyt h e
(3)Ar ig htofr es aleasl i
mi tedbyt h isTi tle; car rierorot h erbai lee, hes h al lnotobl ig edt odel iverorj us tifiedi n
(4)Ar ig htt or es cindt hes aleasl ikewi sel imi tedbyt hisTi tle. del iver i
ngt heg oodst ot hes el lerunl es ss uc hdoc umenti sf irs t
Wh er et heowner shipi nt heg oodsh asnotpas sedt ot hebuy er , the sur render edf orc anc el lat ion. (n)
unpai ds el lerh as ,inaddi tiont oh isot herr emedi esar ig htof Art .1 533. Wh er et heg oodsar eofper ish abl enat ur e,orwh er et hes eller
withh ol di ngdel iver ys imi lart oandc oex tens ivewi thh isr igh tsofl ien expr es s lyr es er vest her ig h tofr es al ei nc as et hebuy ers h oul dmake
ands toppag ei nt rans ituwh er et h eowner sh iph aspas sedt ot h ebuy er. def aul t, orwh er et hebuy erh asbeeni ndef aul ti nt hepay mentoft he
(n) pric ef oranunr eas onabl et ime, anunpai ds el lerh av ingar ig htofl ien
Art. 15 27. Subj ec tt ot h epr ov isi onsoft h isTi tle, t heunpai ds el lerof orh av ings toppedt h eg oodsi nt rans itumayr es el lt heg oods . Hes h all
goodswh oi si npos ses sionoft h emi sent it
l edt or etai npos s es sionof nott h er eaf terbel iabl et ot heor ig inalbuy erupont hec ont rac tofs al e
themunt ilpay mentort enderoft h epr ic ei nt h ef ollowi ngc as es , orf oranypr of itmadebys uc hr es al e, butmayr ec ov erf r omt hebuy er
namel y: damag esf oranyl os soc c as ionedbyt hebr eac hoft hec ont r ac tofs al e.
(1)Wh er et h eg oodsh av ebeens ol dwi thoutanys t ipul at ionast oc r edi t
; Wh er ear es al ei smade, asaut hor izedi nt hisar ticle, thebuy er
(2)Wh er et heg oodsh av ebeens ol donc redi t, butt het er mofc redi t acqui resag oodt itleasag ai ns tt heor ig inalbuy er .
hasex pi red; Itisnotes sent ialt ot h ev al i
di tyofr es alet h atnot iceofani nt ent iont o
(3)Wh er et hebuy erbec omesi ns ol vent . res el lt heg oodsbeg ivenbyt h es ellert ot heor i ginalbuy er . Butwh er e
Thes el lermayex er cis eh isr ig h tofl iennot wi ths tandi ngt hath ei si n ther ig htt or es elli snotbas edont heper is habl enat ur eoft h eg oodsor
pos s es sionoft heg oodsasag entorbai leef ort h ebuy er .(n) uponanex pr es spr ov is ionoft h ec ont rac tofs al e, theg ivingorf ai l
ur e
Art. 15 28. Wh er eanunpai ds el lerh asmadepar tdel iver yoft heg oods , tog i ves uc hnot ices hal lber elev anti nanyi ss uei nv olv i
ngt heques t i
on
hemayex er cis eh isr ig htofl ienont h er emai nder , unl es ss uc hpar t wh et hert hebuy erh adbeeni ndef aul tf oranunr eas onabl et imebef or e
deliv er yh asbeenmadeunders uc hc ircums tanc esast os howani nt ent ther es al ewasmade.
towai vet hel i
enorr igh tofr et ent ion. (n) Itisnotes sent ialt ot h ev al i
di tyofar es al et hatnot iceoft het imeand
Art. 15 29 .Th eunpai ds el lerofg oodsl os esh isl i
ent her eon: plac eofs uc hr es ales h oul dbeg i
v enbyt h es ell ert ot heor iginalbuy er .
(1)Wh enh edel iver st h eg oodst oac ar rierorot h erbai leef ort h e Thes el leri sboundt oex er c iser eas onabl ec ar eandj udg menti n
purpos eoft rans mi ss iont ot h ebuy erwi thoutr es er vingt h eowner s hipi n maki ngar es al e, ands ubj ec tt ot h isr equi rementmaymakear es al e
theg oodsort h er igh tt ot h epos s es siont h er eof ; eith erbypubl icorpr ivat es al e. Hec annot ,howev er , direc t lyor
(2)Wh ent h ebuy erorh isag entl awf ullyobt ai nspos s es sionoft he indi rec t lybuyt heg oods .( n)
goods ; Art .1 534. Anunpai ds el lerh av ingt h er ig htofl ienorh av ings toppedt h e
(3)Bywai vert her eof . goodsi nt r ans itu, mayr es c i
ndt het r ans feroft itleandr es umet he
Theunpai ds ellerofg oods ,h av ingal ient her eon, doesnotl os eh isl ien owner s hipi nt h eg oods , wh er eh eex pr es slyr es er vedt h er ig htt odos o
byr eas ononl yt hath eh asobt ai nedj udg mentordec reef ort hepr iceof inc as et hebuy ers houl dmakedef aul t, orwh er et hebuy erh asbeeni n
theg oods .(n) def aul ti nt hepay mentoft h epr icef oranunr eas onabl et ime. Th e
Art. 15 30. Subj ec tt ot h epr ov isi onsoft h isTi tle, wh ent h ebuy erofg oods sell ers h al lnott h ereaf terbel iabl et ot hebuy erupont h ec ont rac tof
isorbec omesi ns olvent ,t heunpai ds el lerwh oh aspar tedwi tht h e sale, butmayr ec ov erf romt h ebuy erdamag esf oranyl os soc cas ioned
pos s es sionoft heg oodsh ast h er ig htofs toppi ngt h emi nt rans itu, th at byt h ebr eac hoft h ec ont rac t.
istos ay ,h emayr es umepos s es s ionoft heg oodsatanyt imewh ilet hey Thet r ans feroft itles hal lnotbeh eldt oh av ebeenr es cindedbyan
arei nt r ans it, andh ewi llt henbec omeent itledt ot h es amer i
g htsi n unpai ds el lerunt ilh eh asmani fes tedbynot ic et ot hebuy erorbys ome
regar dt ot heg oodsash ewoul dh av eh adi fh eh adnev erpar tedwi th oth erov er tac tani nt ent iont or es cind. Iti snotnec es sar yt h ats uc h
thepos ses sion. (n) over tac ts houl dbec ommuni cat edt ot hebuy er , butt heg ivingorf ailur e
Art. 15 31 .Goodsar ei nt rans itwi t hint hemeani ngoft hepr ec edi ng tog i venot icet ot h ebuy eroft hei nt ent iont or es cinds hal lber el ev ant
artic le: inanyi s s uei nv ol vingt h eques tionwh et hert h ebuy erh adbeeni n
(1)Fr omt het imewh ent heyar edel iver edt oac ar rierbyl and, wat er, or def aul tf oranunr eas onabl et i
mebef or et her ig htofr es ciss ionwas
air,orot h erbai leef ort h epur pos eoft rans mi ssiont ot h ebuy er , unt il ass er t ed. (n)
Art. 1535 . Subj ec tt ot h epr ov isionsoft h isTi tle, th eunpai ds el l
er 'sright condi tion. Ift heot h erpar tyh aspr omi sedt h att hec ondit i
ons houl d
oflienors toppag ei nt rans itui snotaf fec tedbyanys ale, orot h er happenorbeper formed, suc hf i
rs tment ionedpar t
ymayal sot reatt he
dispos itionoft heg oodswh icht hebuy ermayh av emade, unl es st he nonper formanc eoft hec ondi tionasabr eac hofwar rant y.
sellerh asas s ent edt h er et o. Wh eret heowner s
h i
pi nt h et h i
ngh asnotpas sed, t
hebuy ermayt reat
If,howev er ,aneg otiabl edoc umentoft i
t l
eh asbeeni ss uedf org oods , thef ulfillmentbyt hes el lerofh isobl igat iont odel ivert hes ameas
nos el ler 'sl ienorr ightofs toppag ei nt rans itus h al ldef eatt her ightof des cribedandaswar rant edex pr es slyorbyi mpl icationi nt hec ontract
anypur ch as erf orv aluei ng oodf ai tht owh oms uc hdoc umenth asbeen ofs aleasac ondi ti
onoft h eobl igat ionoft h ebuy ertoper formh is
neg ot iated, wh et hers uc hneg ot i
at i
onbepr iorors ubs equentt ot h e promi set oac c eptandpayf ort het hing .( n)
notif i
c at iont ot hec arr ier , orot h erbai leewh oi ss ueds uc hdoc ument , Art. 1546. Anyaf fi
rmat ionoff ac toranypr omi s ebyt h es ellerr el ating
oft hes el ler '
sc lai mt oal ienorr ig htofs toppag ei nt rans itu. (n) tot het hingi sanex pres swar r
ant yi ft henat uralt endenc yofs uc h
Art. 1536 . Th ev endori snotboundt odel ivert h et hings ol di nc as et he affirmat ionorpr omi sei st oi nduc et hebuy ert opur ch aset hes ame,
vendees h oul dl os et her ig htt omakeus eoft het er msaspr ov i
dedi n andi ft hebuy erpur chas et h et hingr el yingt her eon. Noaf firmat ionof
Artic le1 1 98. ( 146 7a) thev alueoft het hing ,noranys tat ementpur por tingt obeas tat ement
Art. 1537. Th ev endori sboundt odel ivert h eth ings ol dandi t s oft hes el ler'sopi ni ononl y, shallbec ons tr uedasawar rant y,unl esst he
acc es sionsandac ces s or iesi nt h ec ondi tioni nwh icht heywer eupont he sellermades uc haf firmat i
onors tat ementasanex per tandi twas
per fec tionoft hec ont r ac t. relieduponbyt hebuy er .(n)
Allt hef rui tss hal lper tai nt ot h ev endeef romt h edayonwh icht h e Art. 1547. Inac ontrac tofs al e,unl es sac ont rar yintent i
onappear s,
cont rac twasper fec ted. (1 46 8a) ther eis :
Art. 1538. Inc as eofl os s, det er ior at ionori mpr ov ementoft h et h ing (1)Ani mpl i
edwar rant yont hepar toft hes ellert hath eh asar ightt o
befor ei tsdel iver y, t
h er ul esi nAr tic le1 189s h allbeobs er v ed, t he sellt het hingatt het imewh ent heowner sh ipi st opas s ,
andt h att he
vendorbei ngc ons i
der edt h edebt or .(n) buyers hal lfr omt hatt imeh aveandenj oyt h eleg alandpeac ef ul
Art. 1539 . Th eobl igat iont odel iv ert het hings oldi nc ludest h atof pos ses sionoft het hing ;
plac ingi nt h ec ont roloft h ev endeeal lt hati sment ionedi nt h e (2)Ani mpl iedwar rant yt h att het h i
ngs hal lbef reef romanyh idden
cont rac t, inc onf or mi tywi t ht h ef ol lowi ngr ules : faul t
sordef ec ts,oranyc har georenc umbr anc enotdec laredorknown
Ifth es aleofr eales tat es h oul dbemadewi thas tat ementofi tsar ea, tot hebuy er .
att her at eofac er tainpr ic ef orauni tofmeas ur eornumber ,th e ThisAr ti
c les h allnot ,h owev er,beh el dt or enderl iableas heriff,
vendors h al lbeobl igedt odel ivert ot hev endee, ift h el at ters h oul d auc tioneer ,mor tgag ee, pledg ee, orot herper sonpr ofes singt os ellby
demandi t ,al lt hatmayh av ebeens tat edi nt h ec ont rac t ;but ,sh oul d virtueofaut h or i
tyinf ac torl aw, fort hes al eofat hinginwh ichat hir
d
thisbenotpos s i
bl e, thev endeemayc hoos ebet weenapr opor tional per sonh asal egalorequi t ablei nt eres t.( n)
reduc tionoft hepr i
c eandt her es cis sionoft h ec ont rac t ,pr ov idedt hat,  
inth el at terc as e, thel ac ki nt h ear eabenotl es st hanone- tent hof SUBSECTI ON1 .-War rant yi nCas eofEv ic tion
thats tat ed.
Thes ames h allbedone, ev enwh ent h ear eai st h es ame, ifanypar tof Ar t
. 1548. Ev ic ti
ons h allt akepl ac ewh enev erbyaf inalj udg mentbas ed
thei mmov abl ei snotoft hequal itys pec ifiedi nt h ec ont rac t. onar i
gh tpr iort ot h es al eoranac ti mput ablet ot hev endor ,th e
Ther es cis sion, int h i
sc as e, sh al lonl yt akepl ac eatt h ewi lloft he vendeei sdepr ivedoft h ewh oleorofapar toft h et hingpur ch ased.
vendee, wh ent h ei nfer iorv alueoft h et hings ol dex ceedsone- tent hof Th ev endors h allans werf ort h eev icti onev ent houg hnot hingh asbeen
thepr ic eag reedupon. saidi nt h ec ont rac tont h es ubj ec t.
Nev er th el es s, ift hev endeewoul dnoth av eboug h tt hei mmov abl eh ad Th ec ont rac tingpar ties ,h owev er ,mayi nc reas e, dimi nish, ors uppr ess
heknownofi tss mal lerar eaofi nf er iorqual ity,h emayr es c indt hes ale. thisl egalobl igat ionoft hev endor .(1 475 a)
(146 9a) Ar t
. 1549. Th ev endeeneednotappealf romt hedec is i
oni nor dert h at
Art. 1540. If,i nt h ec as eoft h epr ec edi ngar ticle, t her ei sag reat erar ea thev endormaybec omel iabl ef orev ic t
ion. (n)
ornumberi nt h ei mmov abl et h ant hats tatedi nt h ec ont rac t, the Ar t
. 1550. Wh enadv er sepos s es sionh adbeenc ommenc edbef or eth e
vendeemayac c eptt hear eai nc ludedi nt h ec ont r ac tandr ej ec tt he salebutt h epr es cript iveper iodi sc ompl et edaf tert het rans f
er , t
h e
rest .Ifh eac cept st h ewh ol ear ea, h emus tpayf ort h es ameatt h e vendors hal lnotbel iabl ef orev icti
on. (n)
cont rac tr at e. ( 1470a) Ar t
. 1551 .Ift hepr oper tyi ss oldf ornonpay mentoft axesdueandnot
Art. 1541 . Th epr ov i
s i
onsoft het wopr ec edi ngar tic less h allappl yt o madeknownt ot hev endeebef or et h es al e, thev endori sl iabl ef or
judic ials al es . (n) ev i
ct i
on. (n)
Art. 1542. Int hes al eofr eales tat e, madef oral umps umandnotatt he Ar t
. 1552. Th ej udg mentdebt ori sal sor es pons ibl ef orev ictioni n
rateofac er tai ns umf orauni tofmeas ur eornumber ,th er es hal lbe judic i
als al es ,unl es si tisot h er wis edec reedi nt hej udgment .(n)
noi nc reas eordec reas eoft hepr ice, al thoug ht h er ebeag r eat eror Ar t
. 1553. Anys tipul ationex empt i
ngt h ev endorf romt heobl igat iont o
lessar eaornumbert hant h ats tat edi nt hec ont rac t. ans werf orev i
ctions h allbev oid, ifh eac tedi nbadf aith.(1 476 )
Thes amer ul es hal lbeappl iedwh ent woormor ei mmov abl esass old Ar t
. 1554. Ift h ev endeeh asr enounc edt her ightt owar rant yi nc as eof
foras ing lepr ic e; buti f,bes i
desment ioni ngt heboundar ies , wh ichis ev i
ct i
on, andev ictions houl dt akepl ac e, th ev endors hallonl ypayt he
indis pens abl ei nev er yc onv ey anc eofr eales t ate, itsar eaornumber valuewh icht het h i
ngs ol dh adatt het imeoft h eev i
c ti
on. Sh oul dt he
shoul dbedes ignat edi nt h ec ont r ac t, thev endors h al lbeboundt o vendeeh av emadet hewai verwi thknowl edg eoft h
er i
sksofev icti
on
deliv eral lt hati si nc ludedwi th i
ns ai dboundar ies , ev enwh eni t andas sumedi tsc ons equenc es , thev endors h
al lnotbel iabl e. (1477)
exc eedst h ear eaornumbers pec ifiedi nt hec ont r ac t;and, s houl dh e Ar t
. 1555 .Wh ent h ewar rant yh asbeenag reeduponornot hingh asbeen
notbeabl et odos o, h es hal ls uff erar educ tioni nt h epr ic e, in stipul atedont hispoi nt ,inc as eev i
c tionoc curs ,thev endees hal lhav e
propor t i
ont owh ati sl ac ki ngi nt h ear eaornumber ,unl es st h ec ont ract ther ightt odemandoft hev endor :
isres cindedbec aus et h ev endeedoesnotac c edet ot hef ai luret o (1)Th er et urnoft hev aluewh icht h et h ings oldh adatt het i
meoft he
deliv erwh ath asbeens tipul at ed. (1 471 ) ev i
ct i
on, bei tg reat erorl es st h ant h epr iceoft h es ale;
Art. 1543. Th eac tionsar is ingf romAr tic les1 5 39and1 542s hal l (2)Th ei nc omeorf rui ts,i fh eh asbeenor der edt odel ivert h emt ot he
pres c ribei ns ixmont h s, count edf romt hedayofdel iver y .(1 472a) par tywh owont hes uitag ai ns th im;
Art. 1544. Ift h es amet h i
ngs h oul dh av ebeens oldt odi ffer entv endees , (3)Th ec os tsoft hes uitwh ic hc aus edt h eev iction, and, inapr oper
theowner s hips h allbet rans fer redt ot heper sonwh omayh av ef ir st cas e, thos eoft hes uitbr oug h tag ains tth ev endorf ort hewar rant y;
takenpos s es s iont her eofi ng oodf aith ,ifi ts houl dbemov abl e (4)Th eex pens esoft hec ont rac t,ift h ev endeeh aspai dt hem;
proper t y. (5)Th edamag esandi nt er es ts ,andor nament alex pens es ,ift hes al e
Shoul di tbei mmov abl epr oper ty, th eowner sh i
ps h al lbel ongt ot h e wasmadei nbadf ai th.(1 478)
per sonac qui ringi twh oi ng oodf ai thf irstr ecor dedi ti nt heReg istryof Ar t
. 1556 .Sh oul dt h ev endeel os e,byr eas onoft heev icti
on, apar tof
Proper t y. thet h i
ngs ol dofs uc himpor t anc e,inr elat iont ot hewh ole, thath e
Shoul dt her ebenoi ns cr ipt ion, theowner ships hal lper t aint ot h e woul dnoth av eboug hti twi t houts aidpar t ,hemaydemandt he
per sonwh oi ng oodf ai thwasf irs ti nt h epos s es sion; and, int h e res cissionoft h ec ont r act ;butwi tht h eobl igationt or eturnt het h i
ng
abs enc et h er eof , tot h eper s onwh opr es ent st heol des tt i
t le, pr ov i
ded wi t
houtot herenc umbr anc est h att hos ewh ichith adwh enh eac quiredi t
.
ther ei sg oodf ai th.(1473) Hemayex er c i
s et hisr ig htofac tion, ins teadofenf or ci
ngt hev endor '
s
  liabilityf orev iction.
SECTI ON3. -Condi ti
onsandWar r ant ies Th es amer ul es h allbeobs er v edwh ent woormor et h i
ng sh av ebeen
jointlys ol df oral umps um, orf oras epar at epr ic ef oreac hoft hem, i
f
Art.
1545.Wher
etheoblig
ationofei
therpartyt
oac ont
ractofs
aleis itsh ouldc lear l
yappeart hatt hev endeewoul dnoth avepur ch as edone
subj
ecttoanycondi
tionwhichi
snotperfor
med, s
uchpart
ymayr ef
use wi t
houtt h eot her .(1479a)
toproceedwit
hthecontrac
torhemaywai veperfor
manceofthe Ar t
. 1557. Th ewar rant yc annotbeenf or c edunt ilaf inaljudg menth as
beenr ender ed, wh erebyt hev endeel os est het h
ingac quiredorapar t articl ess hal lbebar redaf ters ixmont h s,fromt h edel iv er yoft het hing
thereof .(1480) sold. ( 1490)
Art.15 58.Th ev endors hallnotbeobl igedt omakeg oodt heproper Art.1 5 72. Ift woormor eani mal sar es oldt og eth er,wh et h erf oral ump
warrant y, unles sh ei ss ummonedi nt hes uitf orev i
ct i
onatt hei nstanc e sumorf oras epar at epr icef oreac hoft hem, ther edh ibi tor ydef ectof
ofthev endee. (1 481a) ones h allonl yg iver iset oi tsr edh ibi tion, andnott hatoft h eot hers ;
Art.15 59.Th edef endantv endees hallas k, withinth etimef i
xedi nt he unles si ts houl dappeart hatt hev endeewoul dnoth avepur chasedt h e
RulesofCour tf orans weringt h ec ompl aint, thatth evendorbemadea soundani malorani mal swi th outt hedef ec t
iveone.
co-def endant . (1482a) Thel at terc as es hal lbepr es umedwh enat eam, yokepai r,ors etis
Art.15 60.Ifth ei mmov ables olds houl dbeenc umber edwi thanynon- boug h t, ev eni fas epar at epr iceh asbeenf i
x edf oreac honeoft he
appar entbur denors ervitude, notment ionedi nt heag reement ,ofs uch animal sc ompos ingt hes ame. (1491 )
anat ur et hati tmus tbepr es umedt hatt h ev endeewoul dnoth av e Art.1 5 73. Th epr ov isionsoft h epr ec edi ngar t i
c l
ewi thr es pec ttot he
acqui redi thadh ebeenawar et h ereof ,hemayas kf ort herescissionof saleofani mal ss hal li nlikemannerbeappl icabl et ot h es al eofot her
thec ont ract,unl es sh es houl dpr ef ert heappr opriatei ndemni t
y . thing s. (1492)
Nei t
h err ightc anbeex ercisedi ft h enon- appar entbur denors ervitude Art.1 5 74. Th er eisnowar rant yag ai ns th i
ddendef ectsofani mal ss old
isrec ordedi nt heReg ist
ryofPr oper ty,unl esst herei sanex pres s atf ai rsoratpubl icauc tions ,orofl ives tocks oldasc ondemned.
warrant yt hatt h et hingi sfreef romal lbur densandenc umbranc es. (1493a)
Withinoney ear ,t obec omput edf romt heex ec utionoft hedeed, t
h e Art.1 5 75 .Th es al eofani mal ss uf fer ingf romc ont agiousdi s easess h
al l
vendeemaybr ingt heac ti
onf orr es cission, ors uef ordamag es. bev oi d.
Oney earh avingel aps ed, hemayonl ybr inganac ti
onf ordamag es Ac ont rac tofs al eofani mal ss hal lal sobev oidi ft heus eors ervicef or
withinanequalper i
od, tobec ount edf romt h edat eonwh i
chhe whic ht h eyar eac qui redh asbeens t atedi nt hec ont rac t, andt heyar e
discov eredt hebur denors ervitude. (
1 483a) foundt obeunf i
tt h er efor.( 1494a)
  Art.1 5 76 .Ift heh iddendef ectofani mal s,ev eni nc as eapr of essional
SUBSECTI ON2. -War rantyAg ai ns tHi ddenDef ects inspec tionh asbeenmade, sh oul dbeofs uchanat uret hatex pert
ofor Enc umbr anc esUpont h eTh ingSol d knowl edg ei snots uf fic i
entt odi s cov eri t, thedef ects h allbe
cons ider edasr edh i
bi tory.
Art.15 61 .Th ev endors hal lber es pons ibl ef orwar rant yag ains tt h e Buti ft hev eter i
nar ian, throug hi g nor anc eorbadf aiths h oul df ailto
hiddendef ec tswh ic ht het hings oldmayh av e, sh oul dt h eyr enderi t discov erordi sclos ei t ,hes hal lbel iabl ef ordamag es .( 1495 )
unfitf ort heus ef orwh ichi tisi nt ended, ors h oul dt h eydi mi nis hi ts Art.1 5 77. Th er edh ibi toryac t
ion, bas edont hef aul tsordef ectsof
fit
nes sf ors uchus et os uc hanex tentt hat ,h adt hev endeebeenawar e animal s,mus tbebr oug htwi thinf or tyday sfromt hedat eoft heir
thereof ,hewoul dnoth av eac qui redi torwoul dh av eg iv enal owerpr i
c e del i
v er yt ot hev endee.
forit; buts ai dv endors h allnotbeans wer abl ef orpat entdef ec tsor Thisac tionc anonl ybeex er cisedwi thr es pec tt of aultsanddef ects
thosewh ichmaybev isibl e,orf ort h os ewh ichar enotv isibl ei ft h e whic har edet ermi nedbyl aworbyl oc alc us toms .(1496 a)
vendeei sanex per twh o, byr eas onofh i
st radeorpr of es s ion, s houl d Art.1 5 78. Ift heani mals houlddi ewi t hint hreeday saf teri tspur chas e,
haveknownt hem. (1 484a) thev endors h allbel iabl ei fth edi seas ewh i
c hc aus et hedeat hex i
s t
ed
Art.15 62. Inas al eofg oods , t
h er ei sani mpl iedwar rant yorc ondi ti
on att het imeoft hec ont ract.(1 497a)
ast ot h equal ityorf i
tnes soft h eg oods ,asf ol l
ows : Art.1 5 79. Ift hes al eber esc i
nded, th eani mals hal lber et ur nedi nthe
(1)Wh er et h ebuy er , ex pr ess l
yorbyi mpl icat ion, makesknownt ot h e condi t ioni nwh ichi twass ol danddel i
v ered, thev endeebei ng
sellert h epar t i
c ul arpur pos ef orwh i
cht heg oodsar eac qui red, andi t ans wer abl ef oranyi nj uryduet oh i
sneg ligenc e, andnotar is i
ngf rom
appear st hatt h ebuy err eliesont h es eller '
ss killorj udg ment( wh ether ther edh ibi toryf aul tordef ec t.(1498)
hebet heg rowerormanuf ac turerornot ),th er ei sani mpl i
edwar ranty Art.1 5 80. Int h es aleofani mal swi thr edh i
bitor ydef ec ts ,th ev endee
thatt heg oodss h al lber eas onabl yf i
tf ors uc hpur pos e; shal lal s oenj oyt her ightment ionedi nar ti
cle1 567;buth emus tmake
(2)Wh er et h eg oodsar ebr oug htbydes cri
pt ionf romas el l
erwh odeal s uset her eofwi thint hes ameper i
odwh ichh asbeenf ixedf ort h e
ingoodsoft hatdes cript ion( wh et herh ebet h eg r owerormanuf ac turer exer c iseoft her edh ibitoryac tion. (1 499)
ornot ),th er ei sani mpl iedwar rant yth att h eg oodss hal lbeof Art.1 5 81. Th ef ormofs aleofl ar gec at tles hal lbeg over nedbys pec i
al
mer ch ant abl equal it y.(n) laws .( n)
Art.15 63. Int hec as eofc ont rac tofs al eofas pec ifiedar t i
c leunderi ts  
patentorot hert r adename, ther ei snowar rant yast oi t sf itnes sf or CHAPTER5
anypar ticularpur pos e, unl es st h er ei sas tipul ati ont ot hec ont rar y.(n) OBLI GATI ONSOFTHEVENDEE
Art.15 64. Ani mpl iedwar rant yorc ondi t i
onast ot h equal ityorf i
t ness
forapar t i
c ularpur pos emaybeannex edbyt h eus ag eoft rade. (n) Art.1 582. Thev endeei sboundt oac ceptdel iveryandt opayt hepr iceof
Art.15 65 .Int hec as eofac ont rac tofs al ebys ampl e, ift h es elleri sa thet hings oldatt het imeandpl ac es tipul atedi nt hec ont rac t.
deal eri ng oodsoft hatki nd, ther ei sani mpl iedwar r ant yt h att he Ifthet imeandpl ac es houl dnoth avebeens ti
pul at ed, thepay ment
goodss hal lbef reef romanydef ec tr ender ingt hemunmer c hant abl e mus tbemadeatt het imeandpl aceoft hedel iveryoft h et hings ol d.
wh i
chwoul dnotbeappar entonr eas onabl eex ami nat ionoft h es ampl e. (1500a)
(n) Art.1 583. Unl es sot her wis eag reed, t
h ebuy erofg oodsi snotboundt o
Art.15 66 .Th ev endori sr es pons ibl et ot hev endeef oranyh iddenf aults acceptdel iver yther eofbyi nstal lment s .
ordef ec tsi nt het h ings old, ev ent h oug hh ewasnotawar et h ereof . Wher et herei sac ont rac tofs al eofg oodst obedel iveredbys t ated
Thispr ov isions hal lnotappl yi ft h ec ont r
ar yh asbeens tipul at ed, and instal l
ment s, wh i
char et obes epar at elypai df or ,andt hes ellermakes
thev endorwasnotawar eoft heh iddenf aul t sordef ec t si nt het h i
ng defec tivedel iveriesi nr es pec tofoneormor ei ns talment s, ort he
sold. (1485 ) buyerneg lectsorr efus eswi thoutj ustc aus et ot akedel iver yoforpay
Art.15 67. Int hec as esofAr ticles1 5 61, 156 2, 15 64, 15 6 5and1 5 66, the foronemor ei ns t
al ment s ,itdependsi neac hc as eont h et er msoft he
vendeemayel ec tbet weenwi t hdr awi ngf romt hec ont rac tand contr ac tandt hec ircums tanc esoft hec as e, whet hert hebr eac hof
demandi ngapr opor tionat er educ tionoft hepr i
c e, wi thdamag esi n contr ac tiss omat erialast ojus tifyth ei njur edpar tyi nr efus ingt o
eitherc as e. (1486 a) proc eedf urth erands uingf ordamag esf orbr eac hoft heent ire
Art.15 68. Ift het hings olds houl dbel os ti nc ons equenc eoft h eh i
dden contr ac t,orwh ethert hebr eac hi ssev er abl e, gi
v i
ngr iset oac laimf or
faults ,andt hev endorwasawar eoft hem, h es hal lbeart h el os s, and compens at i
onbutnott oar ightt ot reatt hewh olec ont rac tasbr oken.
shallbeobl igedt or et ur nt hepr ic eandr ef undt heex pens esoft h e (n)
contr ac t,wi thdamag es .I fhewasnotawar eoft h em, hes h allonl y Art.1 584. Wh er eg oodsar edel iveredt ot hebuy er ,wh ichh eh asnot
returnt hepr i
ceandi nter es tt her eon, andr eimbur s et h eex pens esof prev ious lyex ami ned, hei snotdeemedt oh av eac cept edt hemunl es s
thec ont rac twh ic ht h ev endeemi g hth av epai d. (1487a) andunt i
lh eh ash adar eas onabl eoppor tuni tyofex ami ni ngt hemf or
Art.15 69 .Ift het hings ol dh adanyh iddenf aul tatt het imeoft hes ale, thepur pos eofas cer taini ngwh ethert h eyar ei nc onf ormi tywi t
ht he
ands houl dt her eaf terbel os tbyaf ort uitousev entort hroug ht h ef ault contr ac tifth erei snos tipul ationt ot hec ont rar y.
ofth ev endee, thel at termaydemandoft h ev endort hepr i
c ewh ichh e Unles sot herwi seag reed, wh ent h esel lert ender sdel iveryofg oodst o
paid, les st h ev al uewh i
c ht het h ingh adwh eni twasl os t. thebuy er ,hei sbound, onr eques t,toaf f ordt h ebuy erar eas onabl e
Ifthev endorac tedi nbadf ait h,h es hal lpaydamag est ot hev endee. oppor tunityofex ami ningt heg oodsf ort hepur pos eofas c ertai ni
ng
(1488a) whet hert h eyar einc onf ormi tywi thth ec ont ract .
Art.15 70. Th epr ec edi ngar ticlesoft hisSubs ec tions hal lbeappl icable Wher eg oodsar edel iver edt oac ar r
ierbyt hes eller ,i
nac c ordanc ewi th
tojudi c ials al es ,ex ceptt hatt hej udg mentdebt ors h al lnotbel iabl e anor derf romorag r
eementwi t hthebuy er, upont het er mst hatt he
fordamag es .(1 489a) goodss hallnotbedel iver edbyt hec ar riert ot hebuy erunt i
lh eh as
Art.15 71 .Ac t i
onsar isingf r
omt hepr ov isi
onsoft h epr ec edi ngt en paidt hepr i
ce, wh et hers ucht er msar ei ndi catedbymar kingt h eg oods
witht h ewor ds" c ol lectondel iv er y,"orot her wise, thebuy eri snot Alth oug ht heowner s hipi nt heg oodsh asnotpas sed, ift h eyc annot
ent i
t ledt oex ami net heg oodsbef or et h epay mentoft h epr ice, int he readi l yber es ol df orar eas onabl epr ic e, andi ft hepr ov is ionsof
abs enc eofag reementorus ag eoft radeper mit tings uc hex ami nat ion. artic le1 596 ,f our thpar ag r aph ,ar enotappl icabl e, t hes el lermayof f
er
(n) todel iv ert heg oodst ot h ebuy er ,and, ift h ebuy err ef us est or ec ei ve
Art. 15 85 .Th ebuy eri sdeemedt oh av eac c ept edt heg oodswh enh e them, maynot ifyt h ebuy ert hatt h eg oodsar et her eaf terh el dbyt h e
intimat est ot hes ellert hath eh asac cept edt hem, orwh ent h eg oods sellerasbai leef ort hebuy er .Th ereaf t ert hes el l
ermayt reatt h e
hav ebeendel iv er edt oh i m, andh edoesanyac ti nr el ationt ot hem goodsast hebuy er '
sandmaymai ntai nanac t i
onf ort h epr ice. ( n)
whic hi si nc ons is tentwi t ht h eowner s h ipoft hes eller ,orwh en, af tert he Art. 15 96 .Wh er et h ebuy erwr ong full yneg lec tsorr ef us est oac ceptand
laps eofar eas onabl et ime, h er et ai nst heg oodswi thouti ntimat ingt o payf ort heg oods ,t hes el lermaymai nt ai nanac tionag ai ns th imf or
thes el l
ert h ath eh asr ej ec tedt h em. (n) damag esf ornonac cept anc e.
Art. 15 86 .Int heabs enc eofex pr es sori mpl iedag reementoft he Themeas ur eofdamag esi st hees timat edl os sdi rec tlyandnat ur ally
par ties ,ac cept anc eoft heg oodsbyt hebuy ers h allnotdi sc har g et h e resul tingi nt h eor dinar yc our seofev ent sf romt hebuy er 'sbr eac hof
sellerf roml iabi lityi ndamag esorot herl eg alr emedyf orbr eac hofany cont rac t.
promi s eorwar rant yint hec ont r ac tofs al e. But , if,af terac c ept anc eof Wh er et her ei sanav ai labl emar ketf ort heg oodsi nques tion, the
theg oods , thebuy erf ai lst og ivenot icet ot hes el leroft hebr eac hi n meas ur eofdamag esi s, int heabs enc eofs pec ialc irc ums tanc es
anypr omi seofwar rantywi thinar eas onabl et imeaf tert h ebuy er showi ngpr ox imat edamag eofadi ffer entamount ,th edi ff erenc e
knows , oroug h tt oknowofs uc hbr eac h,t hes ellers h allnotbel iabl e bet weent hec ont rac tpr ic eandt hemar ketorc urrentpr iceatt het ime
ther ef or. (n) ort imeswh ent h eg oodsoug htt oh av ebeenac cept ed, or ,ifnot imewas
Art. 15 87. Unl es sot herwi s eag reed, wh er eg oodsar edel iver edt ot he fixedf orac c ept anc e, th enatt het imeoft h er ef us alt oac c ept .
buy er ,andh er ef us est oac ceptt hem, h av ingt h er i
g hts ot odo, hei snot If,wh ilel abororex pens eofmat er ialamounti snec es s ar yont h epar t
boundt or et ur nt hemt ot h es el ler , buti ti ss uffic ienti fh enot ifiest he oft hes el lert oenabl eh imt of ul fillh isobl igat ionsundert h ec ont r act
sellert h ath er ef us est oac ceptt h em. I
fh ev olunt ar ilyc ons t itut es ofs al e, th ebuy err epudi at est hec ont rac tornot ifiest h es ellert o
hims el fadepos itar yt her eof ,h es h al lbel i ableass uc h.(n) proc eednof ur th ert her ewi th, th ebuy ers hal lbel iabl et ot hes el lerf or
Art. 15 88. Ift h er ei snos tipul at ionass pec ifiedi nt hef i
rs tpar ag raphof laborper for medorex pens esmadebef or er ec ei vingnot ic eoft he
artic le1 5 23, wh ent hebuy er '
sr ef us alt oac ceptt heg oodsi swi thout buy er '
sr epudi at i
onorc ount er mand. Th epr ofitt h es el lerwoul dh av e
justc aus e, thet itl et her et opas s est oh imf romt h emomentt heyar e madei ft hec ont rac tort h es al eh adbeenf ul lyper for meds h al lbe
plac edath i
sdi s pos al.( n) cons ider edi nawar di ngt h edamag es . (n)
Art. 15 89. Th ev endees hal lowei nter es tf ort heper iodbet weent he Art. 15 97. Wh er et h eg oodsh av enotbeendel iver edt ot hebuy er ,andt h e
del i
v er yoft het hi ngandt h epay mentoft h epr i
c e, int h ef oll owi ngt hree buy erh asr epudi at edt h ec ont rac tofs al e, orh asmani f es tedh is
cas es : inabi lityt oper f or mh isobl ig at ionst her eunder ,orh asc ommi t teda
(1)Sh oul di th av ebeens os tipul at ed; breac ht hereof , th es ellermayt ot al lyr es c i
ndt h ec ont rac tofs al eby
(2)Sh oul dt h et h ings oldanddel iv er edpr oduc ef ruitsori nc ome; givingnot iceofh isel ec tions ot odot ot hebuy er .(n)
(3)Sh oul dh ebei ndef aul t ,fromt h et imeofj udi cialorex trajudi cial Art. 15 98. Wh er et h es el lerh asbr okenac ont rac tt odel ivers pec i
f icor
demandf ort hepay mentoft hepr ice. (15 01 a) asc er tai nedg oods ,ac our tmay , ont heappl ic ationoft h ebuy er ,di rec t
Art. 15 90. Sh oul dt hev endeebedi s tur bedi nt hepos ses sionor thatt hec ont r ac ts h al lbeper for meds pec ifical ly,wi th outg ivingt h e
owner s hipoft h et h i
ngac qui red, ors houl dh eh av er eas onabl eg r ounds sellert h eopt ionofr et ai ningt heg oodsonpay mentofdamag es . Th e
tof ears uc hdi st ur banc e, byav indi cat or yac ti
onoraf orec l
os ur eof judg mentordec reemaybeunc ondi tional ,orupons uc ht er msand
mor t gag e, hemays uspendt hepay mentoft hepr iceunt ilt hev endor condi t ionsast odamag es ,pay mentoft h epr ic eandot h er wi se, ast he
hasc aus edt h edi s turbanc eordang ert oc eas e, unl es st h el at terg ives cour tmaydeemj us t.( n)
sec ur ityf ort her et ur noft hepr ic ei napr operc as e, ori th asbeen Art. 15 99 .Wh er et h er ei sabr eac hofwar r ant ybyt h es el ler ,thebuy er
stipul at edt h at ,not with st andi nganys uc hc ont i
ng enc y, thev endees hall may , ath isel ec t i
on:
beboundt omaket hepay ment .Amer eac toft r es pas ss hal lnot (1)Ac c eptorkeept heg oodsands etupag ai ns tt hes el ler ,th ebr eac h
aut hor izet h es us pens ionoft h epay mentoft h
epr ice. (1502a) ofwar rant ybywayofr ec oupmenti ndi mi nut ionorex t i
nc tionoft he
Art. 15 91. Sh oul dt h ev endorh av er eas onabl eg roundst of eart h el os sof price;
immov abl epr oper tys oldandi tspr ic e, hemayi mmedi at elys uef ort he (2)Ac c eptorkeept heg oodsandmai nt ai nanac tionag ai ns tt h es eller
res ciss ionoft hes ale. fordamag esf ort h ebr eac hofwar rant y;
Shoul ds uc hg r oundnotex ist,th epr ov isionsofAr ticle1 191s hal lbe (3)Ref us et oac c eptt h eg oods , andmai nt ai nanac tionag ains tt h e
obs er ved. (1 503) sellerf ordamag esf ort h ebr eac hofwar r ant y;
Art. 15 92. Int hes al eofi mmov abl epr oper t y,ev ent houg hi tmayh av e (4)Res c i
ndt h ec ont rac tofs al eandr ef us et or ec ei vet heg oodsori f
beens tipul atedt h atuponf ai lur et opayt h epr ic eatt het imeag reed theg oodsh av eal readybeenr ec eived, ret ur nt h emorof fert or et ur n
upont her es cis s ionoft h ec ont rac ts h allofr ightt akepl ac e, th ev endee themt ot hes el lerandr ec ov ert hepr ic eoranypar tt h er eofwh i chh as
maypay , ev enaf tert heex pirat ionoft heper iod, asl ongasnodemand beenpai d.
forr es c iss ionoft hec ont r acth asbeenmadeuponh imei t herj udi cially  
 
orbyanot arialac t.Aft ert hedemand, th ec our tmaynotg ranth ima Wh ent h ebuy erh asc laimedandbeeng rant edar emedyi nany oneof
newt er m. (1 504a) thes eway s,noot h err emedyc ant h er eaf terbeg rant ed, wi thout
Art. 15 93. Wi t hr es pec tt omov abl epr oper ty, ther es c issionoft h es ale prej udi c et ot hepr ov isionsoft h es ec ondpar ag raphofAr ticle1 1 91 .
shal lofr ig htt akepl ac ei nt hei nt er es toft hev endor ,ift hev endee, Wh er et heg oodsh av ebeendel iv er edt ot h ebuy er , hec annotr es c ind
upont heex pi rat ionoft h eper i odf ix edf ort h edel iver yoft het h ing , thes al ei fh eknewoft h ebr eac hofwar r ant ywh enh eac c ept edt h e
shoul dnoth av eappear edt or ec ei vei t, or ,h avingappear ed, hes h ould goodswi thoutpr ot es t, ori fh ef ai lst onot ifyt hes el l
erwi t hina
noth av et ender edt h epr iceatt h es amet ime, unl es sal ong erper iod reas onabl et imeoft h eel ec tiont or es cind, ori fh ef ai lst or et ur nort o
hasbeens tipul at edf ori tspay ment .( 1505 ) offert or etur nt heg oodst ot hes el leri ns ubs t
ant i
al lyasg ood
  condi t ionast heywer ei natt het imet h eowner s hipwast rans f er redt o
CHAPTER6 thebuy er .Buti fdet er ior at ionori nj ur yoft h eg oodsi sduet ot h e
ACTI ONSFORBREACHOFCONTRACTOFSALEOFGOODS breac horwar rant y, suc hdet er ior at i
onori njur ys hal lnotpr ev entt h e
buy erf romr et ur ningorof f er ingt or et ur nt h eg oodst ot h es el lerand
Art.15 94. Act i
onsf orbr eac hoft hec ont r
ac tofs aleofg oodss h allbe resc indi ngt hes ale.
gover nedpar ti
cular l
ybyt h epr ovisionsoft hisCh apter,andast o Wh er et hebuy eri sent itledt or es cindt h es al eandel ec tst odos o, he
mat ter snots pecificall
ypr ovidedf orh erein,byot herappl icable shal lc eas et obel iabl ef ort hepr iceuponr et ur ningorof feringt o
provis ionsoft hi
sTi tle.(n) retur nt heg oods .Ift h epr iceoranypar tt her eofh asal readybeenpai d,
Art.15 95 .Wh ere,underac ontrac tofs ale,theowner s
hipoft heg oods thes el lers h al lbel iabl et or epays omuc ht h ereofash asbeenpai d,
haspas sedt ot hebuy erandh ewr ong fullyneg lectsorref usest opay conc ur r ent l
ywi tht her et ur noft heg oods , ori mmedi at el yaf teranof fer
forth eg oodsac c ordingtot het ermsoft hec ontractofs ale,thes ell
er tor et ur nt heg oodsi nex c hang ef orr epay mentoft h epr ic e.
maymai ntainanac tionag ains thimf ort hepr ic
eoft heg oods . Wh er et hebuy eri sent itledt or es cindt h es al eandel ec tst odos o, if
Wh ere, underac ontrac tofs ale, thepr i
cei spay ableonac ertainday, thes el lerr ef us est oac c eptanof feroft h ebuy ert or et ur nt h eg oods ,
irr
es pec ti
veofdel iveryoroft rans feroft i
t l
eandt hebuy erwr ong f
ully thebuy ers hal lt h er eaf terbedeemedt oh oldt heg oodsasbai leef or
neg l
ec t sorr efusest opays uchpr ice, thes ellermaymai ntainanac tion thes el ler ,
buts ubj ec tt oal ient os ec ur epay mentofanypor tionoft he
forth epr i
c eal t
houg hth eowner shipi nt heg oodsh asnotpas sed.Buti t pricewh i
c hh asbeenpai d, andwi tht her emedi esf ort h eenf or c ement
shallbeadef ens etos uc hanac t
iont h atthes elleratanyt imebef ore ofs uc hl ienal lowedt oanunpai ds ellerbyAr tic le1 5 26 .
thejudg menti nsuc hac ti
onh asmani festedani nabil
ityt oper formt h
e (5)I nt hec as eofbr eac hofwar rant yofqual ity,s uc hl os s ,int h e
contrac tofs aleonh ispar torani nt ent i
onnott oper f
or mi t. abs enc eofs pec ialc ir cums tanc ess howi ngpr ox imat edamag eofa
great
eramount,i
sthedi
fferencebet
weent
hevalueofth
egoodsatth
e redempt ionc annotbebr oug h tag ains teac hoft hemex c eptf orh i
sown
ti
meofdel i
ver
ytoth
ebuy erandtheval
uet
heywouldhaveh
adifth
ey shar e, whet hert hethingbeundi vided, ori th asbeenpar ti
t i
onedamong
hadansweredtot
hewarranty.(
n) them.
  Buti fthei nh er it
anc eh asbeendi vided, andt het hings oldh asbeen
CHAPTER7 awar dedt ooneoft heh ei rs, theac tionf orr edempt ionmaybe
EXTINGUISHMENTOFSALE institutedag ai nsthimf ort hewh ole. (1517)
Art. 1616.Th ev endorc annotav ailh i
ms elfoft her i
g htofr epur c
h ase
Art.
1600.Salesareexti
nguishedbythes amecausesasal
loth
er with outr etur ni ngtot hev endeet hepr iceoft hes al e,andi naddi t
ion:
obli
gati
ons, byt
hosestatedintheprecedingart
icl
esofth
isTi
tle,
and (1)Th eex pens esoft hec ont rac t,andanyot h erl eg i
timat epay ment s
byconventi
onalorlegalredemption.(1
506) madebyr eas onoft h
es al e;
  (2)Th enec es saryandus ef ulex pens esmadeont het hings ol d.(1518)
SECTION1 .-Convent
ionalRedempt i
on Art. 1617.Ifatt hetimeoft heex ec utionoft hes alet heres houldbeon
thel and, vis ibleorg rowi ngf ruits, theres hal lbenor eimbur sementf or
Art. 16 01. Conv ent ionalr edempt ions h allt akepl ac ewh ent hev endor orpr oratingoft hoseex i
s tingatt het imeofr edempt i
on, ifno
reser vest her ightt or epur ch as et h et h ings ol d, wit ht heobl igat iont o indemni tywaspai dbyt hepur chas erwh ent hes al ewasex ec uted.
compl ywi tht h epr ov isionsofAr ticle1 6 16andot hers tipul at ionswh ic
h Shoul dther eh avebeennof ruitsatt het imeoft h es aleands omeex ist
mayh av ebeenag r
eedupon. (1 507) att het imeofr edempt i
on, theys hal lbepr orat edbet weent h e
Art. 16 02. Th ec ont rac ts h allbepr es umedt obeanequi tabl emor tgag e, redempt ionerandt hev endee, givingt h el attert hepar tc orr espondi ng
inanyoft h ef ol lowi ngc as es : tot het imeh epos sessedt hel andi nt hel as ty ear ,count edf romt he
(1)Wh ent hepr iceofas al ewi thr igh tt or epur c has ei sunus ual ly anni ver s
ar yoft hedat eoft hes ale.( 1519 a)
inadequat e; Art. 1618.Th ev endorwh or ecov erst het hings olds hal lr
ec ei vei tfree
(2)Wh ent hev endorr emai nsi npos s es s ionasl es s eeorot h er wi se; fromal lc har g esormor tg ag esc ons titutedbyt h ev endee, buth es hall
(3)Wh enuponoraf tert h eex pi rationoft h er ig htt or epur c has e res pec tthel eas eswh icht hel attermayh av eex ecut edi ng oodf aith,
anot h eri ns trumentex tendi ngt heper i
odofr edempt i
onorg r ant inga andi nac cor danc ewi thth ec us tomoft hepl ac ewh eret hel andi s
newper iodi sex ecut ed; situat ed. (
1 520)
(4)Wh ent hepur chas err et ai nsf orh ims el fapar toft h epur ch as epr i
c e;  
(5)Wh ent hev endorbi ndsh ims el ftopayt het ax esont h et h ings ol d; SECTI ON2. -Leg alRedempt ion
(6)I nanyot h erc asewh er ei tmaybef ai rl yi nfer redt hatt h er eal
intent ionoft hepar tiesi st hatt h et rans ac t ions hal lsec ur et h e Art. 1619 .Leg alr edempt ioni st her ightt obes ubr og ated, upont he
pay mentofadebtort h eper for manc eofanyot herobl igat ion. samet er msandc ondi ti
onss tipulat edi nt hec ont rac t,int h epl aceof
Inanyoft hef or eg oi ngc as es , anymoney ,fr uits, orot herbenef ittobe onewh oac qui resat hingbypur chas eordat i
oni npay ment ,orbyany
recei vedbyt h ev endeeasr entorot h er wi s es h allbec ons ider edas othert rans ac ti
onwh erebyowner s hipi st rans mi ttedbyoner oust it
le.
inter es twh ichs hallbes ubj ec tt ot h eus ur yl aws . (n) (1521 a)
Art. 16 03. Inc as eofdoubt ,ac ont rac tpur por t
ingt obeas al ewi thr igh t Art. 1620. Ac o- ownerofat hingmayex er ciset her igh tofr edempt ioni n
tor epur c has es hal lbec ons t
r uedasanequi tabl emor tgag e. (n) cas et hes h aresofal lt heot herc o-owner sorofanyoft h em, ar es oldto
Art. 16 04. Th epr ov isionsofAr tic le1 602s h al lal soappl yt oac ont rac t ath irdper son. Ift h epr i
c eoft heal i
enat ioni sg ros slyex ces sive,the
pur por t i
ngt obeanabs ol utes al e. (n) redempt ioners hal lpayonl yar eas onabl eone.
Art. 16 05 .Int h ec as esr ef er redt oi nAr tic les1 602and1 604, th e Shoul dt woormor ec o-owner sdes iret oex er ciset her i
g htof
appar entv endormayas kf ort h er ef or mat i
onoft h ei ns trument .(n) redempt ion, theymayonl ydos oi npr opor ti
ont ot hes har et heymay
Art. 16 06 .Th er ig htr ef err edt oi nAr tic le1 6 01 ,int heabs enc eofan respec tivel yh avei nt het hingownedi nc ommon. (15 22a)
expr es sag reement ,s halll as tf oury ear sf romt hedat eoft h ec ont ract. Art. 1621 .Th eowner sofadj oi ningl andss hallal soh av et h er ightof
Shoul dt h erebeanag reement , theper iodc annotex ceedt eny ear s. redempt ionwh enapi eceofr ur all and, thear eaofwh i
c hdoesnot
Howev er ,th ev endormays tillex er ciset h er ightt or epur c has ewi th i
n exc eedoneh ec t
ar e, isal ienat ed, unl es st heg rant eedoesnotownany
thirtyday sf romt het imef inalj udg mentwasr ender edi nac iv ilac tion rurall and.
ont h ebas ist h att hec ont r ac twasat rues al ewi thr igh ttor epur chas e. Thisr igh tisnotappl icabl et oadj ac entl andswh ic har es epar at edby
(1508a) brooks ,dr ai ns ,r
av ines ,roadsandot herappar ents ervitudesf ort he
Art. 16 07. Inc as eofr ealpr oper ty,th ec ons ol i
dat i
onofowner s hipi nt he benef itofot h eres tat es .
vendeebyv i
r tueoft h ef ai lureoft h ev endort oc ompl ywi tht h e Iftwoormor eadj oi ningowner sdes iret oex er ciset h er ightof
prov isi onsofar ticle1 616s h al lnotber ec or dedi nt h eReg is tryof redempt ionatt hes amet i
me, theowneroft headj oi ningl andof
Proper tywi t houtaj udi cialor der ,aft ert hev endorh asbeendul yh ear d. smal l
erar eas hal lbepr ef er red; ands h oul dbot hl andsh av et hes ame
(n) area, t heonewh of ir streques tedt her edempt i
on. (1 523a)
Art. 16 08. Th ev endormaybr i
ngh isac tionag ains tev erypos s es sor Art. 1622. Wh enev erapi ec eofur banl andwh ichi ss os mal lands o
whos er i
g hti sder ivedf romt h ev endee, ev eni fint hes ec ondc ont r act sit
uat edt hatamaj orpor tiont her eofc annotbeus edf oranypr acti
cal
noment ions h oul dh av ebeenmadeoft h er ig htt or epur c has e, wi t
h out purpos ewi th inar eas onabl et ime, hav ingbeenboug htmer elyf or
prej udi cet ot h epr ov isionsoft h eMor tg ag eLawandt h eLand spec ul ation, isaboutt ober e- sold, theownerofanyadj oiningl andh as
Reg is trat ionLawwi thr es pec tt ot hirdper sons .(15 10) ar ightofpr e- empt ionatar eas onabl epr ice.
Art. 16 09. Th ev endeei ss ubr og atedt ot hev endor '
sr ightsandac tions. Ifth er e-s al eh asbeenper fec ted, t heowneroft headj oini ngl ands hall
(151 1) havear ig htofr edempt ion, al soatar eas onabl epr ice.
Art. 16 10. Th ec redit or soft h ev endorc annotmakeus eoft her ig htof Wh ent woormor eowner sofadj oi ningl andswi sht oex er ciset her ight
redempt ionag ains tt hev endee, unt ilaf tert heyh av eex h aus tedt h e of
proper tyoft h ev endor .(15 12) pre- empt ionorr edempt ion, th eownerwh osei nt endedus eoft heland
Art. 16 11. Inas alewi thar ig htt or epur ch as e, th ev endeeofapar tofan inques tionappear sbes tjus tifieds hal lbepr ef erred. (n)
undi videdi mmov abl ewh oac qui rest hewh olet hereofi nt hec as eof Art. 1623. Th er ig
h tofl egalpr e- empt ionorr edempt ions h allnotbe
artic le498, mayc ompelt h ev endort or edeemt hewh olepr oper ty, ifthe exer cis edex ceptwi th i
nt hirt yday sfromt henot icei nwr itingbyt he
latterwi shest omakeus eoft her i
g htofr edempt ion. ( 151 3) pros pec ti
v ev endor ,orbyt hev endor ,ast hec as emaybe. Th edeedof
Art. 16 12. Ifs ev er alper s ons ,joi ntlyandi nt hes amec ont r ac t, sh oul d sales hal lnotber ec ordedi nt heReg is tryofPr oper ty,unl es s
sellanundi videdi mmov abl ewi thar ig htofr epur ch as e, noneoft hem acc ompani edbyanaf f
idav itoft h ev endort hath eh asg i
v enwr i
t t
en
mayex erc iset hisr igh tformor et hanh isr es pec tives h are. notic et her eoft oal lpos s i
bl er edempt ioner s.
Thes amer ules h allappl yi ft heper sonwh os oldani mmov abl eal one Ther i
g htofr edempt ionofc o-owner sex c l
udest h atofadj oiningowner s.
hasl ef ts ev eralh ei rs, i
nwh ichc as eeac hoft hel at termayonl yr edeem (1524a)
thepar twh ichh emayh av eac qui red. (1 51 4)  
Art. 16 13. Int h ec as eoft h epr ec edi ngar tic le, thev endeemaydemand CHAPTER8
ofal lt h ev endor sorc o-h ei rst h att heyc omet oanag reementupont he ASSI GNMENTOFCREDI TSANDOTHERI NCORPOREALRI GHTS
pur ch as eoft hewh ol et hings ol d; ands h oul dt heyf ailt odos o, th e
vendeec annotbec ompel ledt oc ons entt oapar tialr edempt ion. ( 1515) Art
.1624.Anas si
gnmentofc redit
orsandotheri
ncorpor ealrig
htss hal
l
Art. 16 14. Eac honeoft h ec o-owner sofanundi videdi mmov abl ewh o beperfectedinac c
ordancewi t
htheprovis
ionsofArtic
le1 475.(n)
mayh av es oldh iss h ares epar at ely, mayi ndependent lyex er cis et h e Art
.1625.Anas si
gnmentofac r
edit,
righ
toracti
ons hallproduceno
rightofr epur ch as easr eg ar dsh i
sowns har e, andt h ev endeec annot eff
ectasag ainstthi
rdperson,unlessi
tappearsinapubl i
cinstrument,
compelh imt or edeemt h ewh ol epr oper ty .(1 516) ortheins
t r
umenti srecor
dedi ntheRegist
ryofPropertyinc aset h
e
Art. 16 15. Ift hev endees houl dl eav es ev er alh eirs, th eac tionf or assi
gnmenti nvol
vesrealproperty.(
1526)
Art .16 26 .Th edebt orwh o, bef or eh av ingknowl edg eoft h eas s ignment , Art.
1637.Theprov
isi
onsofthi
sTitl
earesubj
ectt
otherul
eslaiddown
pay sh isc r edi t ors hal lber el eas edf romt h eobl igation. (1 527) bytheMor t
gageLawandt heLandReg
ist
rati
onLawwit
hregardto
Art .16 27. Th eas si
g nmentofac redi tinc ludesal lth eac c es sor yr ight
s, immovablepropert
y.(
1537a)
suc hasag uar ant y, mor tgag e, pl edg eorpr ef er enc e. (15 28)  
Art .16 28. Th ev endori ng oodf ai ths hallber es pons ibl ef ort he Tit
leVII.
-BARTEROREXCHANGE
ex istenc eandl egal ityoft h ec redi tatt h et imeoft hes al e,unl essit
shoul dh av ebeens oldasdoubt ful; butnotf ort h es ol venc yoft he Art.16 38.Byt hec ontrac tofbar terorex changeoneoft hepar ti
esbinds
debt or ,unl es si th asbeens oex pr es slys tipul at edorunl es st h e himsel ft og i
veonet hingi nc ons iderationoft h eother '
spr omi setogive
insol v enc ywaspr iort ot h es al eandofc ommonknowl edg e. anoth ert hing.(1538a)
Eveni nt hes ec as esh es h al lonl ybel i
abl ef ort hepr ic er ec ei vedand Art.16 39 .
Ifoneoft hec ontrac ti
ngpar ties,havingrec eivedt het hi
ng
fort h eex pens ess pec ifi
edi nNo. 1ofAr t i
c le1 61 6. promi s edh imi nbar t
er ,sh ouldpr oveth atitdidnotbel ongt ot he
Thev endori nbadf ait hs h al lal way sbeans wer abl ef ort h epay mentof personwh og aveit,hec annotbec ompel l
edt odel iv
ert hatwh i
chh e
allex pens es , andf ordamag es .(1 529) offeredi nex change, buth esh allbeent it
ledt odamag es .(1539a)
Art .16 29 .Inc as et heas s ig nori ng oodf aiths h oul dh av emadeh i
ms elf Art.16 40.Onewh ol osesbyev ictiont het hi
ngr eceivedi nbar termay
res pons ibl ef ort h es ol venc yoft hedebt or ,andt hec ont r ac tingpar ti
es recov ert hatwh ichheg avei nex c hangewi t har i
ghttodamag es ,orhe
shoul dnoth av eag r eedupont h edur ationoft h el iabi li
t y, i
ts h alllas t mayonl ydemandani ndemni tyf ordamag es.Howev er,h ec anonl y
foroney earonl y
, fromt h et imeoft heas s ignmenti ft heper iodh ad makeus eoft h
er ighttor ecov ert hethingwh ichh eh asdel iveredwh i
le
alreadyex pi red. thes amer emainsi nt hepos sess ionoft heot herpar ty,andwi t
hout
Ift hec redi ts h oul dbepay abl ewi th inat er morper iodwh ichh asnoty et prejudi cet ot h
er ightsac qui redi ng oodf aithint hemeant imebyat hi
rd
ex pir ed, th el iabi li
tys hal lc eas eoney earaf tert hemat ur i
ty. (1 530a) person. (1540a)
Art .16 30. Onewh os ellsani nh erit anc ewi thoutenumer at ingt h et hi
ngs Art.16 41.Ast oal lmat ter snots pec i
ficallyprov i
dedf ori nth i
sTi t
le,
ofwh ic hi ti sc ompos ed, s h al lonl ybeans wer abl ef orh isc har ac t
eras barters hallbeg overnedbyt h epr ovisionsoft hepr ecedi ngTi t
le
anh ei r.(1 531 ) relatingt os ales.(1541 a)
Art .16 31 .Onewh os el lsf oral umps umt h ewh ol eofc ert ainr ig hts,  
rent s ,orpr oduc t
s ,sh allc ompl ybyans wer ingf ort h el eg itimac yoft he Titl
eVI II.-LEASE
wh olei ng ener al ;buth es h al lnotbeobl igedt owar ranteac hoft he  
var iouspar tsofwh ichi tmaybec ompos ed, ex c epti nt hec as eof CHAPTER1
evic tionf romt hewh ol eort h epar tofg reat erv alue. (15 32a) GENERALPROVI SIONS
Art .16 32. Sh oul dt h ev endorh av epr ofitedbys omeoft hef rui tsor
rec eiv edany th ingf romt hei nh er itanc es ol d, hes hal lpayt hev endee Art.1642. Thec ontractofl easemaybeoft hings,orofwor kands er
vice.
ther eof ,ift h ec ont rar yh asnotbeens t
ipul at ed. (15 33) (1542)
Art .16 33. Th ev endees hal l,onh ispar t,rei mbur s et hev endorf oral l Art.1643. Inthel easeoft h
ings,oneoft hepar t
iesbi ndsh i
ms elftogive
thatt h el at termayh av epai df ort h edebt sofandc har g esont he toanot hert heenj oymentorus eofat hingf orapr icec ertain,andfora
est at eands at isfyt hec redi t sh emayh av eag ains tt hes ame, unl ess periodwh ichmaybedef initeori ndefinite.Howev er, noleas ef ormore
ther ei sanag r eementt ot h ec ont r ary.(1 534) thanni net y
-niney earssh allbevalid.(1543a)
Art .16 34. Wh enac redi torot heri nc orpor ealr igh tinl itig ationi ss old, Art.1644. Inthel easeofwor kors ervi
c e,oneoft h epar tiesbinds
thedebt ors h al lhav ear igh tt oex tinguis hi tbyr eimbur singt he himselft oex ec uteapiec eofwor kort or endert ot heot h ersome
as sig neef ort hepr icet h el at terpai dth er ef or ,th ejudi cialc os ts servic
ef orapr ic
ec ert
ai n,butther elationofpr incipalandag entdoes
incur r edbyh im, andt h ei nt er es tont h epr icef romt h edayonwh ic
ht he notex istbet weent hem. (1544a)
samewaspai d. Art.1645. Cons umableg oodsc annotbet h es ubjectmat terofac ontr
ac t
Ac redi torot heri nc or por ealr ig hts hal lbec ons ider edi nl itigat ion ofleas e, exceptwh enth eyar emer elyt obeex hibitedorwh ent heyare
fromt het imet h ec ompl ai ntc onc er ningt h es amei sans wer ed. access oryt oani ndustri
ales t
ablishment .(15 45a)
Thedebt ormayex er ciseh i sr ig htwi th i
nt h irtyday sf romt hedat et he  
as sig needemandspay mentf romh im. (15 35 ) CHAPTER2
Art .16 35 .Fr omt hepr ov is ionsoft h epr ec edi ngar ticles h allbe LEASEOFRURALANDURBANLANDS
ex cept edt h eas si
g nment sors alesmade: SECTION1 .-Gener alProv isi
ons
(1)Toac o- hei rorc o- owneroft her ightas sig ned;
(2)Toac redi tori npay mentofh isc redi t; Art.1646 .Th eper sonsdi s qual if i
edt obuyr efer redt oinAr ticl
es1 490
(3)Tot h epos ses sorofat enementorpi ec eofl andwh ichi ss ubjectto and1 491 ,ar eal s odi s qual ifiedt obec omel es seesoft het hings
ther igh tinl itig ationas sig ned. (1 536 ) ment ionedt her ein. (n)
CHAPTER9 Art.1647. Ifal eas ei st ober ec or dedi nth eReg istryofPr oper ty, the
GENERALPROVI SI ONS foll
owi ngper sonsc annotc ons t i
t utet hes amewi thoutpr operaut hori
ty:
theh usbandwi thr es pec tt ot hewi fe'spar aph er nalr eales tate, the
Art .1636 .I nth epr ec edi ngar tic
lesi nt hisTi t
l egov erni ngt hesal eof fatherorg uar dianast ot hepr oper t yoft hemi nororwar d, andt h e
goods ,unl esst hec ontex tors ubj ec tmat terot herwi ser equi r
es : manag erwi thouts pec ialpower .(15 48a)
(1) "Doc umentoft itl
et og oods " inc l
udesanybi l
lofl adi ng,dock Art.1648. Ev eryl eas eofr eales tatemayber ec ordedi nt heReg istryof
war rant , "quedan, "orwar eh ous er ec eiptoror derf ort h edel i
ver yof Proper ty.Unl es sal eas ei sr ec or ded, itsh allnotbebi ndingupont hird
goods ,oranyot herdoc umentus edi nt heor dinar yc our seofbus inessin persons .
(1 549a)
thes aleort rans ferofg oods ,aspr oofoft hepos s es sionorc ont rolof Art.1649. Th eles s eec annotas sig nt heleas ewi thoutt hec onsentoft he
theg oods ,oraut hor iz
ingorpur por tingt oaut horizet h epos ses sorof lessor, unles st her ei sas tipul at i
ont othec ont r ary.(n)
thedoc umentt ot rans ferorr ec ei ve, eith erbyendor s ementorby Art.165 0.Wh eni nt hec ont rac tofl eas eoft hi
ng st her eisnoex pr ess
del ivery ,g oodsr epr esent edbys uc hdoc ument . prohibit i
on, thel es seemays ubl ett het hingleas ed, inwh oleori npar t
,
"Goods " inc l
udesal lch attel sper sonalbutnott hing si nac ti
onormoney withoutpr ejudic et oh isres pons ibilityfort heper for manc eoft he
ofl eg alt enderi nth ePh i
lippi nes .Th et er mi ncludesg rowi ngfruitsor contrac ttowar dt h el es sor .(15 50)
crops . Art.165 1.Wi th
outpr ej udic et oh isobl i
gationt owar dt hes ubles sor,the
"Or der " 
rel atingt odoc ument soft itlemeansanor derbyendor sement subles seei sboundt ot hel es sorf oral lac tswh ichr efertot heus eand
ont h edoc ument s. preser vationoft het h ingl eas edi nt hemanners tipulatedbet weent he
"Qual i
tyofg oods "
 includest heirs tat eorc ondi t
ion. lessorandt hel es see. (155 1)
"Spec i
ficg oods " meansg oodsi dent ifiedandag reeduponatt h et i
mea Art.165 2.Th es ubl es seei ss ubs idiar i
lyliablet ot hel essorf oranyr ent
cont rac tofs alei smade. duef romt h eles see. Howev er ,th es ubles sees hallnotber espons i
ble
Anant ecedentorpr e-ex istingc lai m, wh et herf ormoneyornot , beyondt heamountofr entduef romh im, inac cordanc ewi thth et erms
cons titut es" val ue"wh er eg oodsordoc ument soft itlear et akenei ther ofthes ubleas e, att het imeoft h eex tr
ajudi cialdemandbyt h
el es sor.
ins at i
s fac ti
ont her eoforass ec ur it
yt h eref or. Payment sofr enti nadv anc ebyt hes ubles sees hal lbedeemednott o
(2)Aper soni si ns olventwi thint h emeani ngoft hisTi tlewh oei therhas havebeenmade, s of arast hel es sor '
sclai mi sc onc erned, unles ss ai
d
ceas edt opayh isdebt si nt h eor di nar yc our seofbus ines sorc annot payment swer eef fect edi nv irtueoft hec ustomoft heplac e.(155 2a)
payh isdebt sast heybec omedue, wh eth eri ns olvenc ypr oceedi ngsh ave Art.165 3.Th epr ov isionsg ov er ni ngwar ranty,c ont ainedi nt heTi tleon
beenc ommenc edornot . Sales ,shal lbeappl icabl et ot h ec ont ractofl eas e.
(3)Goodsar ei na  "del i
v erabl es t ate"  
wi th i
nt hemeani ngoft hisTitle Inthec aseswh er et h er et ur noft hepr iceisr equi red, reduc ti
ons hall
wh ent h eyar ei ns uc has tat et hatt h ebuy erwoul d, undert hec ont r
ac t
, bemadei npr opor ti
ont ot h et imedur i
ngwh i
c ht hel esseeenj oy edt he
beboundt ot akedel i
ver yoft hem. (n) thi
ng .(1553)
SECTI ON2. -Ri g htsandObl ig at ionsoft heLes sorandt h eLes see ofh ish ous eh ol dandbyg ues tsandv is itor s .(15 6 4a)
Art. 16 5 4. Th el es s ori sobl iged: Art .16 6 9.Ift hel eas ewasmadef oradet er mi nat et ime, itc eas esupon
(1)Todel iv ert het hingwh ichi st heobj ec toft hec ont rac ti ns uc ha thedayf ixed, wi th outt h eneedofademand. (1 56 5 )
condi tionast or enderi tf itf ort heus ei nt ended; Art .16 70. Ifatt heendoft h ec ont rac tt hel es s ees houl dc ont inue
(2)Tomakeont hes amedur ingt h el eas eal lt henec es sar yr epai rsin enjoy i
ngt h et h ingl eas edf orf i
f teenday swi tht heac qui es cenc eoft he
ordert okeepi ts ui tabl ef ort h eus et owh ichi th asbeendev ot ed, less or , andunl es sanot icet ot hec ont rar ybyei th erpar tyh as
unles st her ei sas t i
pul at iont ot hec ont r ar y; prev ious lybeeng iven, iti sunder stoodt hatt h er ei sani mpl iednew
(3)Tomai nt ai nt h el es seei nt h epeac efulandadequat eenj oy mentof leas e, notf ort heper iodoft heor i
g inalc ont r ac t, butf ort h et ime
thel eas ef ort h eent iredur at ionoft hec ont r
ac t.( 15 54a) est abl is hedi nAr ticles1 6 82and1 687. Th eot h ert er msoft heor ig i
nal
Art. 16 5 5. Ift h et h ingl eas edi st ot allydes troy edbyaf or tuitousev ent , cont rac ts hal lber ev ived. (1 56 6a)
thel eas ei sex t i
ng uis hed. Ift h edes tr uct ioni spar tial ,th el es seemay Art .16 71 .Ift hel es s eec ont inuesenj oy ingt h et hingaf tert heex pi r
at i
on
choos ebet weenapr opor tionalr educ tionoft h er entandar es cis sion oft hec ont rac t, ov ert h el es sor 'sobj ec t ion, thef or mers h allbes ubj ect
oft h el eas e. (n) tot her es pons ibil i
tiesofapos ses sori nbadf ai t h.(n)
Art. 16 5 6. Th el es s orofabus ines sori ndus tr i
ales t abl ish mentmay Art .16 72. Inc as eofani mpl iednewl eas e, th eobl igat ionsc ont ract edby
cont inueeng ag ingi nt hes amebus ines sori ndus tryt owh icht hel es see at hir dper sonf ort h es ec urityoft hepr inc ipalc ont rac ts h allc eas ewi th
dev ot est het h ingl eas ed, unl es st her ei sas t
ipul at iont ot hec ont rary. res pec tt ot henewl eas e. (1 567)
(n) Art .16 73. Th el es s ormayj udi c iallyej ec tt hel es s eef oranyoft he
Art. 16 5 7. Th el es s eei sobl i
g ed: followi ngc aus es :
(1)Topayt hepr iceoft h el eas eac cor dingt ot het er mss tipul ated; (1)Wh ent heper i odag reedupon, ort hatwh i
c hi sf i
x edf ort hedur at ion
(2)Tous et het h ingl eas edasadi l i
g entf at herofaf ami l y
, dev ot ingi t ofl eas esunderAr ticles1 6 82and1 687, h asex pi red;
tot h eus es tipul at ed; andi nt h eabs enc eofs tipul at ion, t ot hatwh i
c h (2)Lac kofpay mentoft h epr ices tipul at ed;
maybei nf er redf romt h enat ur eoft h et h ingl eas ed, ac cor dingt ot he (3)Vi ol ationofanyoft h ec ondi tionsag r eeduponi nt hec ont rac t;
cus tomoft hepl ac e; (4)Wh ent hel es s eedev otest h et h ingl eas edt oanyus eors er vi
c enot
(3)Topayex pens esf ort hedeedofl eas e. (15 55 ) stipul at edwh ic hc aus est hedet er ior at iont h er eof ;ori fh edoesnot
Art. 16 5 8. Th el es s eemays us pendt hepay mentoft her enti nc as et he obs er vet her equi rementi nNo. 2ofAr tic le1 65 7, asr eg ar dst heus e
less orf ai lst omaket henec es s ar yr epai rsort omai nt aint h el es seei n ther eof .
peac ef ulandadequat eenj oy mentoft hepr oper t yl eas ed. (n) Theej ec tmentoft enant sofag ricul tur all andsi sg ov er nedbys pec ial
Art. 16 5 9. Ift h el es sorort hel es s ees h oul dnotc ompl ywi tht he laws . (1 569a)
oblig at ionss etf or thi nAr ticl es1 6 54and1 6 57, th eag gr i
ev edpar tymay Art .16 74. Inej ec t mentc as eswh er eanappeali st akent h er emedy
askf ort h er es c iss ionoft hec ont rac tandi ndemni ficat ionf ordamag es, grant edi nAr tic le5 39, s ec ondpar ag raph ,s hal lal soappl y ,ift heh igher
oronl yt h el at t er, al lowi ngt hec ont rac tt or emai ni nf or c e.( 155 6) cour ti ss at isfiedt hatt hel es s ee' sappeali sf r ivol ousordi lat or y,or
Art. 16 6 0. Ifadwel lingpl ac eoranyot herbui ldingi ntendedf orh uman thatt hel es sor 'sappeali spr imaf ac iemer itor ious . Th eper iodoft en
habi tat i oni si ns uc hac ondi tiont h ati tsus ebr ing si mmi nentand day sr ef erredt oi ns aidar ticles h allbec ount edf romt het imet h e
ser iousdang ert ol i
f eorh eal th ,th el es seemayt er mi nat et hel eas eat appeali sper f ec ted. (n)
onc ebynot ifyingt h el es s or , ev eni fatt h et imet h ec ont r actwas Art .16 75 .Ex cepti nc as ess tat edi nAr tic le1 673, th el es sees hal lhav ea
per fec tedt hef or merknewoft hedang er ousc ondi t i
onorwai vedt h e rightt omakeus eoft h eper iodses t abl is hedi nAr tic les1 682and1 6 87.
rightt or es c indt h el eas eonac c ountoft h isc ondi t i
on. (n) (1570)
Art. 16 6 1. Th el es sorc annotal tert h ef or moft het h ingl eas edi ns uc ha Art .16 76 .Th epur c has erofapi ec eofl andwh i
c hi sunderal eas et hati s
wayast oi mpai rt heus et owh icht het hingi sdev ot edundert het erms notr ec or dedi nt h eReg is tryofPr oper tymayt er mi nat et h el eas e, s ave
oft h el eas e. (1 55 7a) wh ent h erei sas tipul at iont ot hec ont rar yi nt hec ont rac tofs al e, or
Art. 16 6 2. Ifdur ingt h el eas ei ts houl dbec omenec es sar yt omakes ome wh ent h epur c has erknowsoft heex istenc eoft h el eas e.
urg entr epai rsupont het hingl eas ed, wh ic hc annotbedef erredunt il Ifth ebuy ermakesus eoft h isr ig ht, thel es s eemaydemandt hath ebe
thet er mi nat ionoft h el eas e, thel es s eei sobl igedt ot oler atet hewor k, allowedt og at hert h ef rui tsoft heh ar v es twh i
c hc orr es pondst ot he
alth oug hi tmaybev er yannoy ingt oh im, andal th oug hdur i
ngt hes ame, cur rentag ric ul tur aly earandt h att hev endori ndemni fyh imf or
hemaybedepr ivedofapar toft hepr emi s es . damag ess uff er ed.
Ifth er epai rsl as tmor et hanf or tyday st her ents hal lber educ edi n Ifth es al ei sf ic titious , fort hepur pos eofex ting ui sh ingt h el eas e, the
propor tiont ot het ime-i nc l
udi ngt hef irs tf ortyday s-andt hepar tof suppos edv endeec annotmakeus eoft h er igh tg r ant edi nt h ef irst
thepr oper tyofwh ic ht hel es s eeh asbeendepr iv ed. par ag r aphoft hisar ti
c le. Th es alei spr es umedt obef ictitiousi fatt he
Wh ent hewor ki sofs uc hanat ur et h att h epor tionwh i
c ht h el es seeand timet h es uppos edv endeedemandst het er mi nat i
onoft hel eas e, th e
hisf ami lyneedf ort h eirdwel lingbec omesuni nh abi tabl e, hemay salei snotr ec or dedi nt heReg istryofPr oper ty .(1 571 a)
res cindt h ec ont rac ti ft hemai npur pos eoft hel eas ei st opr ovidea Art .16 77. Th epur c has eri nas al ewi tht h er ig htofr edempt ionc annot
dwel lingpl ac ef ort h el es s ee. (15 5 8a) makeus eoft hepowert oej ec tt h el es s eeunt ilt heendoft heper iod
Art. 16 6 3. Th el es s eei sobl igedt obr ingt ot h eknowl edg eoft he fort h er edempt ion. ( 1572)
propr iet or ,wi th int h es hor tes tpos sibl et ime, ev er yus ur pat ionor Art .16 78. Ift h el es seemakes ,ing oodf ai th ,us ef uli mpr ov ement swh ic
h
unt owar dac twh ic hanyt hir dper sonmayh av ec ommi ttedormaybe ares ui tabl et ot h eus ef orwh icht hel eas ei si nt ended, wi th outal ter i
ng
openl ypr epar ingt oc arr youtupont h et h i
ngl eas ed. thef or mors ubs t anc eoft hepr oper tyl eas ed, th el es s orupont h e
Hei sal s oobl ig edt oadv is et heowner ,wi tht h es ameur genc y ,oft h e termi nat i
onoft hel eas es hal lpayt h el es seeone- hal foft hev al ueof
needofal lr epai r si nc ludedi nNo. 2ofAr t icle1 65 4. thei mpr ov ement satt h att ime. Sh oul dt h el es s orr ef us et or eimbur se
Inbot hc as est h el es sees hal lbel iabl ef ort hedamag eswh ich, throug h saidamount ,t hel es seemayr emov et h ei mpr ov ement s, ev ent houg h
hisneg lig enc e, maybes uf fer edbyt hepr opr iet or . thepr inc i
palt h ingmays ufferdamag et h er eby . Hes hal lnot ,h owev er,
Ifth el es s orf ai lst omakeur g entr epai rs ,th el es see, inor dert oav oid caus eanymor ei mpai rmentupont h epr oper tyl eas edt h ani snec es sary.
ani mmi nentdang er ,mayor dert h er epai r satt h el es sor 'sc os t.(1 559a) Wit hr eg ardt oor nament alex pens es ,th el es sees hal lnotbeent itledt o
Art. 16 6 4. Th el es s ori snotobl ig edt oans werf oramer eac toft res pas s anyr ei mbur s ement ,buth emayr emov et heor nament alobj ec ts ,
whic hat hir dper sonmayc aus eont h eus eoft h et hingl eas ed; butt he prov idednodamag ei sc aus edt ot hepr inc ipalt hing , andt h el es sor
less ees h al lh av eadi rec tac tionag ai ns tt h ei nt ruder . doesnotc h oos et or etai nt hembypay i ngt hei rv al ueatt het imet he
Ther ei samer eac toft r es pas swh ent het h ir
dper sonc laimsnor ig ht leas ei sex ting ui sh ed. ( n)
what ev er . (15 6 0a) Art .16 79. Ifnot hingh asbeens tipul at edc onc er ni ngt hepl ac eandt he
Art. 16 6 5. Th el es s ees h al lr et ur nt h et h i
ngl eas ed, upont het er mi nat ion timef ort h epay mentoft h el eas e, th epr ov isionsorAr tic le1 25 1s h all
oft h el eas e, ash er ec eiv edi t, sav ewh ath asbeenl os tori mpai redby beobs er vedasr eg ar dst h epl ac e; andwi thr es pec tt ot h et ime, the
thel aps eoft ime, orbyor dinar ywearandt ear ,orf romani nev itabl e cus tomoft hepl ac es h al lbef ol lowed. ( 15 74)
caus e. (1 5 61 a)  
Art. 16 6 6. Int heabs enc eofas tat ementc onc er ni ngt h ec ondi tionoft he SECTI ON3. -Spec ialPr ov isionsf orLeas esof Rur alLands
thingatt h et imet h el eas ewasc ons titut ed, t
h el awpr es umest hatt he
less eer ec eiv edi ti ng oodc ondi tion, unl es st her ei spr ooft ot h e Art.1680.
Th eless ees hallh avenor ig
h ttoar educti
onoft herenton
cont r ar y. (1 56 2) ac c
ountoft hes t
er i
li
t yoft hel andleas ed,orbyreasonoft helossof
Art. 16 6 7. Th el es s eei sr es pons ibl ef ort h edet er ior ati onorl os soft he fruit
sduet oor dinaryf ortuitousevents ;buthes h
allhaves uchri
ghti
n
thingl eas ed, unl es sh epr ov est hati tt ookpl ac ewi th outh isf aul t.Th is caseoft helossofmor eth anone- hal
foft hef r
uitsth
roug h
bur denofpr oofont h el es s eedoesnotappl ywh ent hedes truc tioni s ex t
raordi
nar yandunf oreseenf or
tuit
ousev ent
s,savealway swhen
duet oear t hquake, flood, s tor morot h ernat ur alc al ami ty.(15 63a) thereisas pecifi
cs tipulat i
ont othec ontrary.
Art. 16 6 8. Th el es s eei sl iabl ef oranydet er iorat ionc aus edbymember s Extraordi
nar yfortuit
ousev ent sareunder stoodtobe: f
ire,war,
pes tilenc e, unus ualf lood, loc ust s, ear thquake, orot h er swh ichar e helperl eav eswi thoutj us ti
f i
abler eason,hes hallfor f
eitanys al arydue
unc ommon, andwh icht h ec ont rac t i
ngpar ti
esc oul dnoth ave himandunpai d, fornotex ceedingf if
teenday s
.
reas onabl yf or es een. (15 75 ) Art.1698. Ifthedur ationoft heh ouseholds erviceisnotdet er mined
Art. 1681 .Nei therdoest hel es seeh av eanyr ightt oar educ tionoft he eitherbys ti
pul ationorbyt henat ureoft hes ervi
ce, theheadoft he
renti ft h ef ruitsar el os taf tert heyh av ebeens epar at edf romt heir fami l
yort heh ous eh elpermayg ivenot i
cet oputanendt ot hes ervice
stalk, rootort r unk. (1 576 ) relation,ac cordi ngtot h
ef oll
owi ngrules:
Art. 1682. Th el eas eofapi ec eofr ur all and, wh eni tsdur at i
onh asnot (1)Ift hec ompens ationi spai dbyt heday ,
not i
cemaybeg ivenonany
beenf ix ed, isunder st oodt oh avebeenf oral lth et imenec es sar yf or dayt hatt hes erv ic
es h allendatt h
ec loseoft hefollowingday ;
theg ath eringoft hef rui tswh ic ht h ewh olees t
at el eas edmayy i
el di n (2)Ift hec ompens at i
oni spai dbyt heweek, noticemaybeg iven, atthe
oney ear , orwh ichi tmayy iel donc e, al thoug htwoormor ey ear sh av eto latestont hef i
rs tbus ines sdayoft heweek, thatth eservices hal lbe
elaps ef ort h epur pos e. (15 77a) terminat edatt heendoft hes eventhdayf romt hebeg i
nningoft he
Art. 1683. Th eout goingl es s ees h al lal lowt hei nc omi ngl es seeort h e week;
less ort h eus eoft h epr emi sesandot hermeansnec es sar yfort he (3)Ift hec ompens at i
oni spai dbyt hemont h,noticemaybeg iven, at
prepar at oryl aborf ort h ef ol lowi ngy ear ;and, rec ipr oc al ly
, t
h e thelat est,ont h efifthdayoft hemont h ,
thatt heser vi
cesh allceas eat
incomi ngl es seeort hel es sori sunderobl i
g ationt oper mi tt he theendoft hemont h.
out goingl es seet odowh at ev ermaybenec essar yf ort heg ath eringor Art.1699 .Upont heex t i
ng uishmentoft heserv i
cer elati
on, theh ous e
har ves tingandut ilizat ionoft hef ruit s,allinac cor danc ewi tht he helpermaydemandf romt h eheadoft hefami l
yawr it
tens tatementon
cus tomoft hepl ace. ( 1578a) thenat ureanddur ationoft heser vic
eandt heef f
iciencyandc onduc t
Art. 1684. Landt enanc yons h ar ess h allbeg over nedbys pec i
all aws ,the ofth eh ous ehel per .
stipul ationsoft hepar ties , thepr ov i
s ionsonpar tner sh ipandbyt he  
cus tomsoft hepl ac e. (15 79a) SECTI ON2. -Cont ractofLabor( n)
Art. 1685 .Th et enantons har esc annotbeej ec tedex cepti nc as es
spec ifiedbyl aw. (n) Art.1700. Th er el at ionsbet weenc api talandl aborar enotmer el y
SECTI ON4. -Spec ialPr ov is i
onsoft heLeas eof Ur banLands contrac tual .Th eyar es oimpr es sedwi thpubl ici nter es tt hatl abor
Art. 1686 .Indef aul tofas pec ials tipul ation, t
h ec us tomoft hepl ac e contrac tsmus ty iel dt ot h ec ommong ood. Th er ef or e, suc hc ont ractsare
shal lbeobs er vedwi thr eg ar dt ot heki ndofr epai rsonur banpr oper ty subjec ttot h es pec iall awsonl aboruni ons ,col lec tivebar gaini ng,
forwh icht h el es sors hal lbel iabl e. Inc aseofdoubti ti sunder stood stri
kesandl oc kout s ,clos eds hop, wag es , wor ki ngc ondi tions ,h oursof
thatt h er epai r sar ec h ar geabl eag ai ns thim. (1580a) laborands imi lars ubj ec ts .
Art. 1687. Ift heper iodf ort hel eas eh asnotbeenf ix ed, itisunder stood Art.1701 .Nei therc api t alnorl abors h
al lac toppr es sivel yag ains tthe
tobef romy eart oy ear , ift her entag r eeduponi sannual ;frommont h other, orimpai rt hei nter es torc onv eni enc eoft hepubl ic .
tomont h ,ifiti smont h ly;fr omweekt oweek, ift her enti sweekl y; and Art.1702. Inc as eofdoubt ,al llaborl eg is lationandal llaborc ont racts
fromdayt oday ,ift her enti st obepai ddai ly.Howev er, event houg ha shallbec ons t r
uedi nf avoroft hes afet yanddec entl ivingf ort he
mont hlyr enti spai d,andnoper iodf ort heleas eh asbeens et ,the laborer .
cour tsmayf ixal ong ert er mf ort h el eas eaf t
ert h el es s eeh as Art.1703. Noc ont r ac twh ic hpr ac ticallyamount st oi nv ol untar y
occ upi edt hepr emi sesf orov eroney ear .Ift her enti sweekl y,th e servitude, underanyg ui sewh at soev er ,s hal lbev al id.
cour tsmayl ikewi sedet er mi neal ong erper i
odaf tert h el ess eeh as Art.1704. Inc ollec t ivebar gai ning ,thel aboruni onormember soft h e
beeni npos ses sionf orov ers ixmont hs .I
nc as eofdai lyr ent, thec our ts boardorc ommi ttees igningt hec ont rac ts hal lbel iabl ef ornon-
mayal sof ixal ong erper iodaf tert hel esseeh ass tay edi nth epl ac e fulfi
llmentt her eof .
forov eronemont h.(1 581 a) Art.1705 .Th el abor er'swag ess hal lbepai di nl eg alc ur renc y.
Art. 1688. Wh ent hel es s orofah ous e, orpar tt her eof , us edasa Art.1706 .Wi th holdi ngoft hewag es ,ex ceptf oradebtdue, shal lnotbe
dwel lingf oraf ami ly,orwh ent hel es sorofas tor e, ori ndus trial madebyt h eempl oy er.
establ i
s hment , alsol eas est hef ur nitur e,thel eas eoft hel atters hal l Art.1707. Th el abor er'swag ess hal lbeal ienont heg oods
bedeemedt obef ort hedur at ionoft hel eas eoft hepr emi ses .( 1582) manuf ac tur edort h ewor kdone.
  Art.1708. Th el abor er'swag ess hal lnotbes ubj ec tt oex ecut ionor
CHAPTER3 attach ment , ex ceptf ordebt sinc ur redf orf ood, sh elt er, cloth ingand
WORKANDLABOR medi calat t endanc e.
SECTI ON1 .-Hous eh ol dSer vic e( n) Art.1709. Th eempl oy ers h allnei thers ei z enorr et ai nanyt oolorot her
articl
esbel ong ingt ot hel abor er .
Art.1689. Hous eh olds er vices h allal way sber eas onabl yc ompens at ed. Art.171 0.Di smi s salofl abor erss h allbes ubj ec tt ot hes uper visionof
Anys tipul at i
ont hath ous eh ol ds er vicei swi thoutc ompens ations h all theGov ernment , unders pec iallaws .
bevoi d. Suc hc ompens at i
ons hallbei naddi tiont ot heh ous eh el per '
s Art.171 1.Owner sofent erpr isesandot h erempl oy er sar eobl ig edt opay
lodging ,food, andmedi calat tendanc e. compens at ionf ort hedeat hofori njur iest ot h ei rlabor ers ,wor kmen,
Art.1690. Th eh eadoft h ef ami lys hallf urnish ,freeofc harg e,tot he mec hani csorot h erempl oy ees ,ev ent houg hth eev entmayh av ebeen
househ elper ,sui tableands ani t
ar yquar tersaswel lasadequat ef ood purelyac cident alorent i
r elyduet oaf or tuitousc aus e, ift hedeat hor
andmedi calat t endanc e. personali njur yar os eoutofandi nt hec our seoft h eempl oyment .Th e
Art.1691 .Ift heh ous eh elperi sundert heag eofei g hteeny ear s ,th e empl oy erisal sol iabl ef orc ompens at i
oni fth eempl oy eec ont ractsany
headoft hef ami lys hal lg i
veanoppor tunityt ot h eh ous eh elperf orat ill
nessordi seas ec aus edbys uc hempl oy mentorast her esul toft h e
leastel ement ar yeduc ation. Th ec ostofs uc heduc at ions hallbeapar t natureoft h eempl oy ment .Ift hemi s hapwasduet ot h eempl oy ee'sown
oftheh ous eh el per '
sc ompens ation, unles st her ei sas tipul ationt ot h
e notoriousneg l
ig enc e, orv olunt ar yac t, ordr unkennes s ,theempl oyer
contrar y. shallnotbel iabl ef orc ompens at ion.Wh ent heempl oy ee' sl ac kofdue
Art.1692. Noc ont rac tf orh ous eh olds ervices h alll as tformor et h an carec ont ribut edt oh isdeat hori njury, th ec ompens at ions hal lbe
twoy ear s. Howev er ,suc hc ont rac tmayber enewedf romy eart oy ear . equitabl yreduc ed.
Art.1693. Th eh ous eh el per 'sc l
ot hess hallbes ubj ec tt os tipul ation. Art.171 2.Ift hedeat hori njur yisduet ot h eneg ligenc eofaf ellow
Howev er, anyc ont rac tf orh ous eh olds ervices h allbev oidi fth erebyt he worker , t
h el atterandt heempl oy ers h al lbes oli dar ilyl iablef or
househ elperc annotaf fordt oac qui res uitabl ec l
ot hing . compens at ion. Ifaf el lowwor ker '
si ntent ionalmal ic iousac tist heonly
Art.1694. Th eh eadoft h ef ami lys hallt reatt heh ous eh elperi naj us t causeoft hedeat hori njur y,th eempl oy ers hal lnotbeans wer able,
andh umanemanner .Innoc as es h allph y s
icalv iolenc ebeus edupon unlessi ts houl dbes hownt hatt h el atterdi dnotex er c iseduedi lig
enc e
theh ous eh elper . inthes elect ionors uper v i
s ionoft h epl ai nt if
f '
sf ellowwor ker .
Art.1695 .Hous eh el pers hal lnotber equi r
edt owor kmor et hant en  
hoursaday .Ev er yh ous eh el pers h allbeal lowedf ourday s'vac at ion SECTI ON3. -Cont rac tf oraPi eceofWor k
eachmont h,wi thpay .
Art.1696 .Inc as eofdeat hoft h eh ous eh elper ,th eh eadoft hef ami l
y Art.1
71 3.Bythec ontr ac tf orapieceofwor kthec ont
ractorbinds
shallbeart hef uner alex pens esi ft heh ous eh el perh asnor elat ivesi n himselftoex ecuteapi ec eofwor kfortheempl oyer,i
nc onsi
der ati
on
thepl ac ewh er et h eh eadoft hef ami lylives, withs uffic i
entmeans ofac ertainpriceorc ompens ati
on.Thecontractormayei th
erempl oy
therefor . onlyhislaborors kill, oral s
of ur
nishthemat eri
al.(1
588a)
Art.1697. Ift heper iodf orh ous ehol ds er vi
c ei sf ixednei th ert heh ead Art.1
71 4.Ifth
ec ont rac torag r
eestoproducet heworkf rommat eri
al
ofthef ami lynort h eh ous eh elpermayt er minat et hec ontr actbef or e furni
shedbyh i
m, hes hal ldel i
verthethi
ngpr oducedtot heempl oyer
theex pi rationoft h et er m, ex ceptf oraj ustc aus e. Ifth eh ous eh elper andtrans ferdomi nionov erthething.
Thiscontractshallbeg overnedby
isunjus tlydi s mi ss ed, hes h al lbepai dt hec ompens ational ready thefollowingarticlesaswel lasbythepertinentprovis
ionsonwar rant
y
earnedpl ust hatf orf ifteenday sbywayofi ndemni t y.Ifth eh ous e oftit
leandag ainsth iddendef ect
sandt hepay mentofpr i
cei na
cont rac tofs al e. ( n) toc ircums tancesbey ondh i
sc ont rol.(1595)
Art.1 71 5. Th ec ont rac ts hal lex ec ut et h ewor ki ns uc hamannert h ati t Art .1727.Thec ontr actori sres pons i
blefort hewor kdonebyper s ons
hast hequal i
t iesag reeduponandh asnodef ec tswh ic hdes troyor empl oyedbyh i
m. (1596 )
less eni t sv al ueorf it nes sf ori tsor dinar yors tipul at edus e. Sh oul dt he Art .1728.Thec ontr actori sli
abl ef orallth eclaimsofl abor ersand
wor kbenotofs uc hqual ity,th eempl oy ermayr equi ret hatt he oth ersempl oyedbyh im,andoft h i
rdper sonsf ordeat horph ysi
c al
cont rac torr emov et hedef ec torex ec ut eanot h erwor k. Ift hec ont rac t injuriesdur ingt h
ec onstruction. (n)
failsorr ef us est oc ompl ywi tht hisobl igat ion, th eempl oy ermayh av e Art .1729.Thos ewh oputt heirlaboruponorf ur nishmat erial
sf ora
thedef ec tr emov edoranot herwor kex ec ut ed, att hec ont rac tor'sc ost. piec eofwor kunder takenbyt hec ontractorh av eanac tionag ains tt
he
(n) ownerupt ot heamountowi ngf romt helattert ot hec ontractoratt h
e
Art.1 71 6. Anag reementwai vingorl imi tingt h ec ont rac tor 'sl iabilityf or timet heclai mismade. Howev er , thefollowings hal
lnotpr ejudic ethe
anydef ec ti nt hewor ki sv oidi ft hec ont rac torac tedf raudul ent ly. (n) labor ers,empl oyeesandf urnis her sofmat erials:
Art.1 71 7. Ift hec ont rac torboundh ims el ft of ur nis ht h emat er ial, he (1)Pay ment smadebyt heownert ot hecont r
ac t
orbef or etheyar edue;
shal ls uf fert hel os si ft hewor ks h oul dbedes troy edbef or ei t sdel iv ery, (2)Renunc iationbyt hec ontrac torofanyamountdueh imf r
omt he
savewh ent her eh asbeendel ayi nr ec ei vingi t. (15 89) owner .
Art.1 71 8. Th ec ont rac t orwh oh asunder t akent oputonl yh iswor kor Thisar t
icl
ei ss ubjec ttot hepr ov isionsofs pec iallaws .(1597a)
skill,c annotc lai manyc ompens at ioni ft hewor ks houl dbedes troy ed Art .1730.Ifitisag reedt h atthewor ks h
al lbeac compl ishedt oth e
befor ei tsdel iver y ,unl es st her eh asbeendel ayi nr ec ei vingi t,ori fth e sat isfact
ionoft hepr oprietor, itisunder stoodt hati nc aseof
des truc tionwasc aus edbyt h epoorqual ityoft hemat er ial ,pr ovided disag reementt heques t
ions hal lbes ubjec ttoex pertj udg ment .
thisf ac twasc ommuni cat edi nduet imet ot h eowner .Ift h emat er iali s Ifth ewor kiss ubjec ttot heappr ov alofat hi
r dper son, hisdec i
s i
on
lostt hr oug haf or tui tousev ent , thec ont rac ti sex ting ui sh ed. ( 1590a) shal lbef i
nal ,excepti nc aseoff raudormani fester ror.(1598a)
Art.1 71 9. Ac c ept anc eoft hewor kbyt heempl oy err el iev est h e Art .1731.Hewh oh asex ec utedwor kuponamov ableh asar ightto
cont rac torofl iabi lit yf oranydef ec tint hewor k, unl es s: retai nitbywayofpl edg eunt ilh ei spaid. (1600)
(1)Th edef ec ti sh iddenandt h eempl oy eri snot , byh iss pec ial  
knowl edg e, ex pec t edt or ec og ni zet hes ame; or SECTI ON4. -CommonCar ri
ers( n)
(2)Th eempl oy erex pr es s l
yr es er vesh i
sr igh tsag ai ns tt hec ont rac t or SUBSECTI ON1 .
-Gener alPr ovi sions
byr eas onoft hedef ec t. (n)
Art.1 720. Th epr iceorc ompens at ions h allbepai datt h et imeand Art.1732. Commonc arr
iersar epersons ,cor por ations, firmsor
plac eofdel iv er yoft hewor k, unl es st her ei sas tipul at i
ont ot h e assoc iationseng agedint hebus i
nessofc ar ryingort r
ans porti
ng
cont rar y. Ift hewor ki st obedel iver edpar tial ly ,th epr iceor pas seng ersorg oodsorbot h,byl
and, wat er, orai r,forc ompens ation,
compens at ionf oreac hpar th av ingbeenf ix ed, th es ums hal lbepai dat offeringt heirservicestot hepublic.
thet imeandpl ac eofdel iver y ,int heabs enc ei fs t i
pul ation. (n) Art.1733. Commonc arr
iers,fromthenat ureoft h eirbus inessandf or
Art.1 721 . If, i
nt h eex ec ut ionoft hewor k, anac toft heempl oy eris reasonsofpubl i
cpol i
cy,areboundt oobs erveex traor dinarydili
gence
requi red, andh ei nc ur si ndel ayorf ai lst oper for mt heac t, the inthev i
g i
lanceov ertheg oodsandf ort hes af et yoft hepas sengers
cont rac tori sent itledt oar eas onabl ec ompens at ion. transpor tedbyt hem, accordingtoallt hec i
rc ums tanc esofeac hcase.
Theamountoft h ec ompens at ioni sc omput ed, ont heoneh and, byt he Suchex traordinarydili
genc einthevigilanc eov ert heg oodsi sfurther
durat ionoft h edel ayandt heamountoft hec ompens at ions tipulat ed, expres sedi nAr ti
cles1734, 1735,
and1 745 ,Nos .5,6,and7, wh i
lethe
andont heot herh and, bywh att hec ont r ac torh ass av edi nex pens esby extraor dinarydiligencefort hesafetyoft h epas seng er sisfurtherset
reas onoft hedel ayori sabl et oear nbyadi ff er entempl oy mentofh i
s forthinAr ti
cles175 5and1 756.
timeandi ndus tr y. (n)  
Art.1 722. Ift h ewor kc annotbec ompl et edonac c ountofadef ec ti nt he SUBSECTI ON2. -Vigil
anceOv erGoods
mat er ialf ur nis hedbyt h eempl oy er ,orbec aus eofor der sf romt h e
empl oy er ,wi th outanyf aul tont hepar toft h ec ont rac tor ,t hel at terh as Art.1 734. Commonc ar riersar er es pons iblef ort hel os s,des t ruc ti
on, or
ar i
g htt oanequi t abl epar toft h ec ompens at ionpr opor tional lytot he deter ior at ionoft heg oods ,unl es st h es amei sduet oanyoft he
wor kdone, andr eimbur sementf orpr operex pens esmade. ( n) followi ngc aus esonl y:
Art.1 723. Th eeng ineerorar ch itec twh odr ewupt hepl ansand (1)Fl ood, s tor m, ear thquake, lightni ng ,orot hernat ur aldi sas t
eror
spec ific at ionsf orabui ldingi sl iabl ef ordamag esi fwi thinf ifteen calami ty;
year sf romt hec ompl et ionoft h es truc tur e, t hes ames h oul dc ollaps e (2)Ac toft h epubl icenemyi nwar ,wh et heri nt er nat ionalorc ivil;
byr eas onofadef ec ti nt hos epl ansands pec ificat ions ,orduet ot h e (3)Ac tofomi ss ionoft hes hipperorowneroft h eg oods ;
defec tsi nt heg round. Th ec ont r ac tori sl i
kewi s er es pons ibl ef ort h e (4)Th ec h ar ac teroft heg oodsordef ec tsint hepac kingori nt h e
damag esi ft h eedi fic ef al ls, wi thint hes ameper iod, onac c ountof cont ainer s ;
defec tsi nt hec ons tr uc tionort heus eofmat er ialsofi nf er iorqual ity (5)Or derorac tofc ompet entpubl icaut hor ity .
furni shedbyh im, orduet oanyv iol at ionoft het er msoft h ec ontr ac t.If Art.1 735 .Inal lc as esot hert hant hos ement ionedi nNos .1 ,2, 3, 4,and5
theeng ineerorar ch itec ts uper v i
s est hec ons t ruc tion, hes h al lbe ofth epr ec edi ngar tic l
e, ift heg oodsar el os t,des troy edor
solidar i
l yl iabl ewi tht h ec ont r ac tor . deter ior at ed, c ommonc ar rier sar epr es umedt oh av ebeenatf aul tor
Ac cept anc eoft hebui ldi ng ,af terc ompl etion, doesnoti mpl ywai v erof toh av eac tedneg li
g ent ly,unl es sth eypr ov et h att heyobs er ved
anyoft hec aus eofac t ionbyr eas onofanydef ec tment ionedi nth e ex t
raor dinar ydi ligenc easr equi redi nAr ticle1 733.
prec edi ngpar ag r aph . Art.1 736 .Th eex traor dinar yr es pons ibilityoft hec ommonc ar rierl asts
Theac tionmus tbebr oug htwi th int eny ear sf ol lowi ngt h ec ollaps eof fromt h et imet heg oodsar eunc ondi tional lypl ac edi nt hepos ses sion
thebui ldi ng .( n) of,andr ec eiv edbyt hec ar rierf ort rans por tat ionunt ilth es amear e
Art.1 724. Th ec ont rac torwh ounder takest obui ldas tr uc tur eorany deliver ed, ac tual lyorc ons tr uctivel y,byt hec ar ri
ert ot h ec ons ig nee,or
otherwor kf oras t i
pul at edpr ic e, inc onf or mi t ywi thpl ansand toth eper sonwh oh asar igh tt or ecei vet hem, wi thoutpr ejudi cet othe
spec ific at ionsag reeduponwi tht h el and- owner ,c annei th erwi thdr aw prov isionsofAr ticl
e1 738.
fromt h ec ont r ac tnordemandani nc reas ei nt hepr iceonac countof Art.1 737. Th ec ommonc arrier 'sdut yt oobs er veex traor dinar ydi li
genc e
theh i
g herc os tofl aborormat er ials ,s av ewh ent her eh asbeena overt heg oodsr emai nsi nf ul lfor ceandef fec tev enwh ent h eyar e
chang ei nt hepl ansands pec ificat ions ,pr ov ided: tempor arilyunl oadedors tor edi nt rans i
t, unl es st hes hipperorowner
(1)Suc hc h ang eh asbeenaut h or i
z edbyt hepr opr iet ori nwr iting;and hasmadeus eoft her ig htofs toppag e int rans itu.
(2)Th eaddi tionalpr icet obepai dt ot h ec ont rac torh asbeen Art.1 738. Th eex traor dinar yl iabi li
tyoft hec ommonc arr i
erc ont inuest o
deter mi nedi nwr it i
ngbybot hpar ties .(1 593a) beoper at iveev endur ingt het imet heg oodsar es tor edi nawar eh ous e
Art.1 725 .Th eownermaywi th dr awatwi llfr omt h ec ons tr uc tionoft h e ofth ec arr ieratt hepl ac eofdes ti
nat ion, unt ilt hec ons igneeh asbeen
wor k, alt houg hi tmayh av ebeenc ommenc ed, indemni fyingt h e adv isedoft hear rivaloft heg oodsandh ash adr eas onabl eoppor tunity
cont rac torf oral lt hel at ter 'sex pens es ,wor k, andt heus ef ulnes swh ich thereaf tert or emov et h emorot her wi sedi s pos eoft hem.
theownermayobt ai nt her ef rom, anddamag es . (15 94a) Art.1 739. Inor dert hatt hec ommonc ar riermaybeex empt edf rom
Art.1 726 .Wh enapi ec eofwor kh asbeenent rus tedt oaper s onby respons i
bi lity,th enat uraldi sas termus th av ebeent hepr oxi mat eand
reas onofh isper s onalqual ific ations , thec ont rac tisr es cindedupon onlyc aus eoft h elos s. Howev er, t
hec ommonc ar riermus tex er cisedue
hisdeat h. dili
g enc et opr ev entormi ni mi zel os sbef or e, dur ingandaf tert he
Inth isc as et h epr opr iet ors h al lpayt h eh eir soft h ec ont rac tori n occur r enc eoff lood, s tormorot hernat uraldi sas teri nor dert h att he
propor tiont ot h epr ic eag reedupon, th ev al ueoft hepar toft hewor k commonc ar riermaybeex empt edf roml iabi lityf ort hel os s,
done, andoft hemat er ialspr epar ed, pr ov idedt h el at tery iel dh im des truc tion, ordet er i
or ationoft heg oods .Th es amedut yi si ncumbent
somebenef it. upont h ec ommonc ar rieri nc aseofanac toft hepubl icenemyr ef erred
Thes amer ul es hal lappl yift h ec ont rac torc annotf inis ht h ewor kdue toinAr ti
c le1 734, No. 2.
Ar t.1 740. Ift hec ommonc ar ri erneg lig ent lyi nc ur si ndel ayi n circums t anc es .
trans por tingt heg oods ,anat ur aldi s as t ers hal lnotf rees uc hc ar rier Art.1 75 6. Inc as eofdeat hofori nj uriest opas seng ers ,common
fromr es pons ibili ty. carrier sar epr es umedt oh avebeenatf aul tort oh aveac ted
Ar t.1 741 .Ift h es h ipperorownermer el yc ont ribut edt ot h el os s, neg l
ig ent ly,unl es st heypr ovet hatt heyobs ervedex traor dinar y
des truc tionordet er ior at ionoft h eg oods , thepr ox imat ec aus et h ereof diligenc easpr es cr ibedi nAr ti
c les1 733and1 75 5.
bei ngt heneg ligenc eoft h ec ommonc ar r i
er , thel at ters hal lbel i
abl ein Art.1 75 7. Ther es pons ibi l
ityofac ommonc ar r
ierf ort hes afet yof
damag es ,wh ichh owev er ,s hal lbeequi tabl yr educ ed. pas seng er sasr equi redi nAr ti
c les1 733and1 75 5c annotbedi spensed
Ar t.1 742. Ev eni ft h el os s, des truc tion, ordet er ior at ionoft h eg oods withorl es senedbys t
ipul at i
on, byt hepos tingofnot i
c es ,bys tatement s
sh oul dbec aus edbyt hec h ar ac teroft h eg oods , ort hef aul tynat ur eof ont icket s,orot h erwi se.
thepac ki ngoroft h ec ont ai ner s, thec ommonc ar riermus tex er cisedue Art.1 75 8. Wh enapas seng eri sc ar riedg rat uitous ly,as tipul at i
on
dilig enc et of or es t al lorl es s ent h el os s. li
mi tingt h ec ommonc arrier '
sliabi lityf orneg ligenc ei sv alid, butnot
Ar t.1 743. Ift hr oug ht heor derofpubl icaut hor ityt heg oodsar es eiz ed forwi lfulac tsorg r ossneg ligenc e.
ordes troy ed, t hec ommonc ar rieri snotr es pons ible, prov ideds ai d Ther educ tionoff ar edoesnotj us tif
yanyl imi t
at ionoft hec ommon
publ icaut hor ityh adpowert oi s suet heor der . carrier 'sl iability .
Ar t.1 744. As tipul at ionbet weent hec ommonc ar rierandt h es hipperor Art.1 75 9. Commonc ar riersar el iabl ef ort h edeat hofori njur i
esto
ownerl imi ti ngt h el iabi lityoft h ef or merf ort hel os s, des t ruc tion, or pas seng er st hroug ht heneg ligenc eorwi lfulac t soft hef or mer '
s
det er iorat ionoft h eg oodst oadeg reel es st hanex traor dinar y empl oy ees ,al th oug hs uc hempl oy eesmayh aveac tedbey ondt h
es cope
dilig enc es h al lbev al i
d, pr ov idedi tbe: oft heiraut hor ityori nv iolationoft heor der soft hec ommonc arriers.
(1)I nwr iting ,s ig nedbyt hes h ipperorowner ; Thisl iabi lityoft h ec ommonc ar rier sdoesnotc eas euponpr ooft hat
(2)Suppor tedbyav al uabl ec ons ider at ionot h ert hant hes er vice theyex er c i
s edal lt hedi ligenc eofag oodf at herofaf ami lyi nthe
render edbyt hec ommonc ar r ier ;and selec tionands uper vi
s i
onoft hei rempl oy ees .
(3)Reas onabl e, j us tandnotc ont r ar yt opubl i
cpol ic y. Art.1 76 0. Thec ommonc arrier '
sr es pons ibilitypr es cri
bedi nt he
Ar t.1 745 .Anyoft h ef ol lowi ngors imi lars tipul at ionss hal lbe prec edi ngar t
ic lec annotbeel imi nat edorl imitedbys tipul ation,bythe
cons ider edunr eas onabl e, unj us tandc ont r ar yt opubl icpol icy: pos tingofnot ices ,bys tatement sont het i
c ketsorot h erwi se.
(1)Th att heg oodsar et r ans por tedatt her iskoft heownerors hipper ; Art.1 76 1. Thepas seng ermus tobs er vet hedi li
g enc eofag oodf atherof
(2)Th att hec ommonc ar rierwi llnotbel iabl ef oranyl os s ,des truc tion, af ami lyt oav oi di nj uryt oh ims el f.
ordet er ior at ionoft h eg oods ; Art.1 76 2. Thec ont ribut oryneg ligenc eoft hepas seng erdoesnotbar
(3)Th att hec ommonc ar rierneednotobs er veanydi ligenc ei nt h e recov er yofdamag esf orh i
sdeat hori nj uries ,ifth epr ox i
mat ec ause
cus t odyoft h eg oods ; thereofi st heneg l
ig enc eoft hec ommonc ar ri
er ,butt h eamountof
(4)Th att hec ommonc ar riers h al lex er cis eadeg reeofdi ligenc el es s damag ess hal lbeequi t
abl yr educ ed.
thant h atofag oodf at h erofaf ami ly ,orofamanofor dinar ypr udenc e Art.1 76 3. Ac ommonc ar rierisr es pons ibl ef ori njuriess uf fer edbya
int h ev igilanc eov ert hemov abl est r ans por ted; pas seng eronac countoft hewi lfulac tsorneg ligenc eofot h er
(5 )Th att hec ommonc ar riers h allnotber es pons ibl ef ort heac t
sor pas seng er sorofs trang er s,ifthec ommonc arrier'sempl oy eest hrough
omi ss ionofh isori tsempl oy ees ; theex er c iseoft h edi ligenc eofag oodf ath erofaf ami lyc oul dhav e
(6 )Th att hec ommonc ar rier '
sl iabi lityf orac t sc ommi ttedbyt hiev es ,or prev ent edors toppedt h eac toromi ss i
on.
ofr obber swh odonotac twi thg rav eori rres ist iblet h reat , violenc eor  
for ce, isdi spens edwi thordi mi ni sh ed; SUBSECTI ON4. -CommonPr ov isions
(7)Th att hec ommonc ar rieri snotr es pons ibl ef ort hel os s ,des truc tion,
ordet er ior at ionofg oodsonac countoft hedef ec tivec ondi tionoft he Art.1764.Damag esinc as esc ompr isedi nth
isSec ti
onshallbeawar ded
car , veh i
c le, s h ip, ai rpl aneorot herequi pmentus edi nt hec ont rac tof inacc ordanc ewi thTitleXVI IIoft hi
sBook, concerningDamag es.
car riag e. Arti
cle2206s h allals oappl yt oth edeat hofapas sengercaus edbythe
Ar t.1 746 .Anag reementl imi tingt h ec ommonc ar rier 'sl iabi litymaybe breac hofc ontrac tbyac ommonc ar ri
er.
annul ledbyt h es h ipperorowneri ft h ec ommonc ar rierr ef us edt oc ar r
y Art.1765 .
Th ePubl icSer viceCommi s s
ionmay ,onitsownmot ionoron
theg oodsunl es st h ef or merag reedt os uc hs tipul at ion. petit
ionofanyi nteres tedpar ty ,
af terdueh earing
,cancelthe
Ar t.1 747. Ift hec ommonc ar ri er ,wi th outj us tc aus e, del ay st h e certi
ficateofpubl i
cc onv enienc eg rantedtoanyc ommonc arrierthat
trans por tat ionoft heg oodsorc h ang est h es t ipul at edorus ualr out e, repeat edlyfailst oc ompl ywi thhisori tsdutytoobs erv
eex tr
aor di
nary
thec ont rac tl imi t ingt h ec ommonc ar r ier '
sl iabi lit yc annotbeav ai ledof dil
igenc easpr es c
ribedi nt hisSec tion.
inc as eoft h el os s ,des truc tion, ordet er ior at i
onoft h eg oods . Art.1766 .
Inal lmat ter snotr eg ulatedbyt hi
sCode, therig
h t
sand
Ar t.1 748. Anag r eementl imi tingt h ec ommonc ar rier 'sl iabi lityf ordel ay obli
gat ionsofc ommonc arri
er ss hallbeg overnedbytheCodeof
onac c ountofs t rikesorr iot si sv al id. Commer ceandbys pec iallaws .
Ar t.1 749. As tipul at iont h att hec ommonc ar rier '
sl iabi lityi sl imi tedt o  
thev al ueoft heg oodsappear ingi nt h ebi llofl adi ng ,unl es st he Tit
leI X.-PARTNERSHI P
sh ipperorownerdec lar esag reat erv alue, isbi ndi ng . CHAPTER1
Ar t.1 75 0. Ac ont r ac tf i
x ingt h es umt hatmayber ec ov er ed. byt h eowner GENERALPROVI SIONS
ors h ipperf ort h el os s ,des tr uc tion, ordet er ior at ionoft heg oodsi s
val id, ifi ti sr eas onabl eandj us tundert h ec ir cums tanc es ,andh as Art.1767.Byt hec ont rac tofpar tner sh ipt woormor eper sonsbi nd
beenf air lyandf r eel yag reedupon. thems elvest ocont ribut emoney , pr oper t
y ,ori ndus trytoac ommon
Ar t.1 75 1 .Th ef ac tt h att hec ommonc ar rierh asnoc ompet itoral ongt h e fund, wit
ht heint ent ionofdi vidingt hepr ofi t
samongt hems elv es .
lineorr out e, orapar tt her eof , towh ic ht hec ont rac tr efer ss h allbe Twoormor eper s onsmayal sof or mapar tner s hi
pf ort heex er ciseofa
takeni ntoc ons ider at ionont h eques tionofwh et h erornota profes si
on. (1665a)
stipul at ionl imi tingt hec ommonc ar rier '
sl iabi lityi sr eas onabl e, j
us t Art.1768.Th epar t ner s hiph asaj udi c ialper sonal i
tys epar ateand
andi nc ons onanc ewi thpubl icpol icy . disti
nc tfromt hatofeac hoft h epar t ner s,ev eni nc aseoff ailuret o
Ar t.1 75 2. Ev enwh ent h er ei sanag reementl imi tingt h el iabi lityoft h e compl ywi thther equi rement sofAr tic le1 772, f
irstpar ag r
aph . (n)
commonc ar rieri nt h ev igilanc eov ert heg oods ,t hec ommonc arrieri s Art.1769.Indet er mi ni ngwh etherapar tners hipex is ts
,t h
es er uless hall
dis put abl ypr es umedt oh av ebeenneg ligenti nc as eoft hei rlos s , appl y:
des truc tionordet er ior at ion. (1)Ex ceptaspr ov idedbyAr ti
c l
e1 825 ,per sonswh oar enotpar tnersas
Ar t.1 75 3. Th el awoft h ec ount ryt owh icht h eg oodsar et obe toeac hot herar enotpar tnersast ot hirdper sons ;
trans por teds h al lg ov er nt h el iabi lityoft hec ommonc arrierf ort h eir (2)Co- owner shi
porc o- pos sessiondoesnotofi t
sel festablisha
los s, des truc tionordet er ior at ion. par t
ner ship,whet h ers uc h-
co-owner sorc o- pos sess orsdoordonot
Ar t.1 75 4. Th epr ov isionsofAr tic les1 733t o1 75 3s hal lappl yt ot he shareanypr ofitsmadebyt heus eoft hepr oper t
y;
pas seng er 'sbag gag ewh ichi snoti nh isper s onalc us todyori nt h atof (3)Th es haringofg ros sr eturnsdoesnotofi tselfes t
ablisha
hisempl oy ee. Ast oot h erbag gag e, th er ul esi nAr ticles1 998and2000 par t
ner ship,whet h erornott h
eper s onss har ingt hemh aveaj oi ntor
to2003c onc er ningt her es pons ibi lityofh ot el -keeper ss hal lbe commonr i
g htori nt er es tinanypr oper tyf r
omwh i
cht her eturnsar e
appl ic abl e. der i
ved;
  (4)Th erec eiptbyaper sonofas har eoft h epr ofi
tsofabus ines si s
SUBSECTI ON3. -Saf et yofPas s eng er s primaf acieev idenc et hath ei sapar tneri nt h ebus ines s,butnos uch
inferences h
allbedr awni fsuc hpr ofi tswer er eceivedi npay ment :
Art.
1 75
5 .
Acommonc arri
erisboundtocarr
ythepassenger
ssafel
yas  
farash umancareandforesi
ghtcanprov
ide,us
ingtheutmost (a)Asadebtbyi ns tallment sorot h er wise;
dil
igenceofverycaut
iouspersons,
wit
haduer egar
df oral
lth
e (b)Aswag esofanempl oyeeorr entt oal andl ord;
(c)Asanannui tyt oawi doworr epr es ent at iv eofadec eas edpar t
ner ; liqui dat ionoft h epar tner sh ipaf fai rs, ispr imaf ac ieev idenc eofa
(d)Asi nt eres tonal oan, t houg ht h eamountofpay mentv arywi tht h e cont inuat ionoft hepar t ner s hip. (n)
prof itsoft h ebus i
nes s; Ar t.1 786 . Ev er ypar tneri sadebt oroft h epar tner sh ipf orwh at ev erh e
(e)Ast h ec ons ider at ionf ort h es aleofag oodwi llofabus ines sor mayh av epr omi s edt oc ont r ibut et h er et o.
otherpr oper tybyi ns t al l
ment sorot her wi s e. (n) Hes hal lal sobeboundf orwar rant yi nc as eofev ictionwi thr eg ar dt o
Art. 1770. Apar tner s hipmus th av eal awf ulobj ec torpur pos e, andmus t spec ificanddet er mi nat et h ing swh ic hh emayh av ec ont ribut edt ot he
bees tabl ishedf ort h ec ommonbenef itori nter es toft hepar tner s. par tner s hip, int h es amec as esandi nt hes amemannerast hev endori s
Wh enanunl awf ulpar tner shipi sdi s sol vedbyaj udi cialdec ree, the boundwi thr es pec tt ot h ev endee. Hes h al lal s obel i
abl ef ort hef rui t
s
prof itss h allbec onf isc at edi nf av oroft heSt at e, with outpr ej udi cet o ther eoff romt h et imet h eys h oul dh av ebeendel iver ed, wi thoutt h e
thepr ov isionsoft he  PenalCode  gov er ningt hec onf is cat ionoft he needofanydemand. (16 81 a)
instrument sandef fec tsofac ri
me. (16 66 a) Ar t.1 787. Wh ent h ec api talorapar tt h er eofwh ichapar tneri sboundt o
Art. 1771 . Apar tner s hipmaybec ons titut edi nanyf or m, ex c eptwh er e cont ribut ec ons is tsofg oods ,t hei rappr ais almus tbemadei nt he
immov abl epr oper tyorr ealr ig htsar ec ont ribut edt h er et o, inwh i
ch mannerpr es c ribedi nt hec ont r ac tofpar t ner s hip, andi nt h eabs enc eof
cas eapubl ici ns truments hal lbenec es s ar y. (16 67a) stipul at ion, its hal lbemadebyex per tsc h os enbyt hepar t ner s , and
Art. 1772. Ev eryc ont rac tofpar tner shiph av ingac api taloft h ree ac cor di ngt oc ur rentpr ic es ,t hes ubs equentc h ang est h er eofbei ngf or
thous andpes osormor e, inmoneyorpr oper ty, shal lappeari napubl i
c ac countoft h epar tner sh i
p. (n)
instrument ,wh ichmus tber ec ordedi nt heOf ficeoft heSec ur itiesand Ar t.1 788. Apar t nerwh oh asunder takent oc ont ribut eas umofmoney
Exc hang eCommi ss ion. andf ailst odos obec omesadebt orf ort h ei nt er es tanddamag esf rom
Failur et oc ompl ywi tht her equi r ement soft h epr ec edi ngpar ag r aph thet imeh es h oul dh av ec ompl iedwi thh isobl ig at ion.
shal lnotaf fec tt hel iabi lityoft h epar tner sh ipandt hemember s Th es amer uleappl iest oanyamounth emayh av et akenf romt h e
ther eoft ot h irdper sons .( n) par tner s hipc of fer s ,andh isl iabi litys h allbeg inf romt h et i meh e
Art. 1773. Ac ont rac tofpar tner shipi sv oi d, wh enev eri mmov abl e conv er tedt h eamountt oh i
sownus e. (16 82)
proper tyi sc ont ribut edt h eret o, ifani nv ent or yofs ai dpr oper tyi snot Ar t.1 789. Ani ndus trialpar tnerc annoteng ag ei nbus ines sf orh i
ms el f,
made, sig nedbyt hepar ties , andat tac h edt ot h epubl i
ci ns trument . unl es st hepar t ner s hipex pr es s lyper mi tsh imt odos o; andi fh es houl d
(166 8a) dos o, thec api tal istpar tner smayei th erex cludeh imf romt hef ir mor
Art. 1774. Anyi mmov abl epr oper tyorani nt er es tt her ei nmaybe av ailt hems elv esoft hebenef itswh ichh emayh av eobt ai nedi n
acqui redi nt hepar tner sh ipname. Ti tles oac qui redc anbec onv eyed viol at ionoft h ispr ov is i
on, wi t har igh tt odamag esi nei t herc as e. (n)
onlyi nt h epar tner s hipname. (n) Ar t.1 790. Unl es st h er ei sas ti pul at iont ot h ec ont rar y, th epar tner s
Art. 1775 . As soc iat ionsands oc iet ies ,wh os ear ticlesar ekepts ec ret sh allc ont ribut eequals h ar est ot hec api taloft hepar tner sh ip. (n)
amongt hemember s ,andwh er einanyoneoft hemember smayc ont ract Ar t.1 791 . Ift her ei snoag reementt ot h ec ont r ar y,inc as eofan
inh isownnamewi tht hir dper sons ,s hal lh av enoj uridi calper sonal it
y, immi nentl os soft hebus ines soft hepar tner s hi p, anypar tnerwh o
ands h allbeg ov er nedbyt h epr ov isionsr el at ingt oc o- owner s hip. (1669) ref us est oc ont ribut eanaddi ti onals h ar et ot h ec api t al, ex ceptan
Art. 1776 . Ast oi tsobj ec t, apar tner s hipi sei theruni ver s alor indus tr i
alpar tner , tos av et hev ent ur e, shal lh eobl igedt os el lh is
par ticul ar .
Asr eg ar dst hel i
abi li
t yoft h epar t ner s, apar tner shipmaybe inter es tt ot h eot h erpar tner s .(n)
gener alorl imi ted. ( 16 71 a) Ar t.1 792. Ifapar tneraut h or izedt omanag ec ol lec tsademandabl e
Art. 1777. Auni v ers alpar t ner s hipmayr ef ert oal lth epr es entpr oper t
y sumwh i
c hwasowedt oh imi nh isownname, fromaper s onwh oowed
ort oal lt hepr of its. (16 72) thepar tner s hipanot h ers umal sodemandabl e, th es umt husc ol lec ted
Art. 1778. Apar tner s hipofal lpr es entpr oper tyi st hati nwh icht he sh allbeappl iedt ot het woc r edi tsi npr opor tiont ot h ei ramount s ,ev en
par tner sc ont ribut eal lt hepr oper tywh ic hac tual lybel ong st ot hemt oa thoug hh emayh aveg i
v enar ec ei ptf orh isownc redi tonl y;buts h oul d
commonf und, wi tht h ei nt ent ionofdi v idingt h es ameamong heh av eg iv eni tf ort heac countoft hepar tner s h i
pc r edi t ,theamount
thems el ves ,aswel lasal lth epr of itswh i
c ht heymayac qui r et her ewi th. sh allbef ullyappl i
edt ot h el at ter .
(1673) Th epr ov is ionsoft h isar ticlear eunder s t
oodt obewi thoutpr ej udi cet o
Art. 1779. Inauni v er salpar tner s hipofal lpr es entpr oper t y,th e ther ig htg rant edt ot h eot h erdebt orbyAr ticl e1 25 2, butonl yi ft h e
proper tywh ic hbel ong st oeac hoft hepar t ner satt het imeoft he per s onalc redi toft hepar tners houl dbemor eoner oust oh im. (1 684)
cons titut ionoft h epar tner sh ip, bec omest h ec ommonpr oper tyofal l Ar t.1 793. Apar t nerwh oh asr ec ei ved, inwh ol eori npar t,h iss h ar eofa
thepar tner s, aswel lasal lt hepr ofitswh ic ht h eymayac qui ret h erewi th
. par tner s hipc redi t,wh ent heot h erpar t ner sh av enotc ol lec tedt hei rs,
As tipul at ionf ort h ec ommonenj oy mentofanyot herpr of itsmayal so sh allbeobl iged, ift h edebt ors houl dt her eaf terbec omei ns ol vent ,to
bemade; butt hepr oper tywh icht hepar tner smayac qui r es ubs equent ly br i
ngt ot h epar tner sh ipc api talwh ath er ec ei vedev ent h oug hh emay
byi nher it anc e, leg ac y ,ordonat ionc annotbei nc ludedi ns uc h hav eg i
v enr ec ei ptf orh iss h ar eonl y .(1 685 a)
stipul at ion, ex ceptt h ef r uitst her eof . (16 74a) Ar t.1 794. Ev er ypar tneri sr es pons ibl et ot h epar tner sh ipf ordamag es
Art. 1780. Auni v ers alpar t ner s hipofpr of itsc ompr is esal lth att he suf fer edbyi tt h roug hh isf aul t ,andh ec annotc ompens at et hemwi th
par tner smayac qui r ebyt h eiri ndus t ryorwor kdur ingt h eex is tenc eof thepr of itsandbenef itswh i chh emayh av eear nedf ort h epar t ner sh ip
thepar tner sh ip. byh isi ndus t ry. Howev er , thec our tsmayequi t abl yl es sent h is
Mov abl eori mmov abl epr oper tywh icheac hoft hepar tner smay res pons ibilityi ft hroug ht h epar tner '
sex traor di nar yef for tsi not her
pos ses satt h et imeoft hec el ebr at ionoft h ec ont rac ts h al lc ont inuet o ac tivit i
esoft h epar tner sh i
p, unus ualpr of itsh av ebeenr eal iz ed.
per tainex clus ivel yt oeac h, onl yt h eus uf ruc tpas s i
ngt ot h e (16 86 a)
par tner s hip. (16 75 ) Ar t.1 795 . Th er iskofs pec ificanddet er mi nat et hing s ,wh ichar enot
Art. 1781 . Art iclesofuni ver s alpar tner s hip, ent er edi ntowi th out fung ible, cont ribut edt ot h epar tner s hips ot hatonl yt h eirus eand
spec ific at i
onofi tsnat ure, onl yc ons titut eauni vers alpar tner sh ipof frui tsmaybef ort hec ommonbenef it, sh al lbebor nebyt hepar tnerwh o
prof its.( 1676 ) ownst h em.
Art. 1782. Per s onswh oar epr oh i
bi tedf r omg i
v ingeac hot h erany Ift het hing sc ont ribut ear ef ung ible, orc annotbekeptwi th out
donat ionoradv ant ag ec annotent eri nt ouni ver salpar tner s hip. (16 77) det er ior at ing , ori ft h eywer ec ont ribut edt obes ol d, th er i
s ks h al lbe
Art. 1783. Apar ticul arpar tner s hiph asf ori tsobj ec tdet er mi nat et hings, bor nebyt h epar tner sh ip. Int h eabs enc eofs t ipul at ion, th er is koft h e
theirus eorf rui ts, ors pec ificunder taki ng ,ort h eex er cis eofa thing sbr oug h tandappr ai sedi nt hei nv ent or y ,s hal lal sobebor neby
prof es sionorv oc at ion. (16 78) thepar tner s hip, andi ns uc hc as et h ec lai ms h al lbel imi tedt ot h ev alue
  atwh icht heywer eappr ais ed. ( 1687)
CHAPTER2 Ar t.1 796 . Th epar tner sh ips hal lber es pons iblet oev er ypar tnerf ort he
OBLI GATI ONSOFTHEPARTNERS amount sh emayh av edi s bur s edonbeh alfoft h epar t ner s hipandf or
  thec or res pondi ngi nt er es t, fromt het imet h eex pens ear emade; it
SECTI ON1 .-Obl igat ionsoft hePar tner sAmongTh ems el ves sh allal soans wert oeac hpar t nerf ort h eobl igat ionsh emayh av e
cont rac tedi ng oodf ai thi nt h ei nt er es toft h epar tner s hipbus ines s,
Art.1784.Apar tnershipbeg i
nsf romt hemomentoft heex ecutionofthe andf orr isksi nc ons equenc eofi tsmanag ement .(1 688a)
contrac t
,unlessitisot herwises t
ipulated.(16
79) Ar t.1 797. Th el os sesandpr of itss h allbedi s tribut edi nc onf or mi tywi th
Art.1785.Wh enapar tnershipf oraf i
xedt ermorpar t
icularunder taki
ng theag reement .I fonl yt hes h ar eofeac hpar tneri nt hepr of itsh asbeen
iscontinuedaf terthet erminat i
onofs uchtermorpar tic
ul ar ag reedupon, thes h ar eofeac hi nt h el os s ess h al lbei nt hes ame
under t
akingwi thoutanyex pres sagreement ,th
er i
ghtsanddut iesof pr opor tion.
thepar tnersremai nthes ameast heywer eats uc
htermi nation, s
ofar Int h eabs enc eofs tipul at ion, t hes h ar eofeac hpar tneri nt h epr ofits
asisc onsistentwithapar tner shi
patwi ll. andl os sess hal lbei npr opor tiont owh ath emayh av ec ont ribut ed, but
Ac ontinuationoft hebus i
nes sbyt h
epar tnersorsuchoft hemas thei ndus t rialpar tners hal lnotbel iabl ef ort h el os s es . Asf ort h e
habituallyac t
edt herei
ndur ingt heterm,withoutanysettlementor pr ofit s, thei ndus tr i
alpar tners h allr ec eiv es uc hs h ar easmaybej us t
andequi t abl eundert hec ir cums tanc es .Ifbes idesh iss er vic esh eh as (2)Hi si nter es ti nt hepar tner shi p; and
contribut edc api tal ,h es hal lal sor ec ei veas h ar ei nt hepr of itsin (3)Hi sr igh tt opar ticipat ei nt h emanag ement .(n)
propor tiont oh isc api tal .(1 689a) Art. 181 1.Apar tneri sc o-ownerwi thh i
spar t nersofs pec i
f i
cpar tner s hip
Art.1798. Ift hepar tner sh av eag reedt oi ntrus tt oat hirdper sont he proper ty.
desig nat ionoft hes h ar eofeac honei nt hepr of itsandl os ses ,suc h Thei nc ident soft hisc o-owner s hipar es uc ht hat:
desig nat ionmaybei mpug nedonl ywh eni tismani fes tlyi nequi tabl e. In (1)Apar tner , subj ec tt ot h epr ov isionsoft hisTi tleandt oany
noc as emayapar tnerwh oh asbeg unt oex ec ut et hedec isionoft he ag r
eementbet weent h epar tner s ,h asanequalr ig htwi thh ispar tner s
thir
dper son, orwh oh asnoti mpug nedt h es amewi thinaper i odoft h ree topos s es ss pec ificpar t
ner shippr oper tyf orpar t ner sh ippur pos es ; but
mont h sf r omt het imeh eh adknowl edg et her eof , compl ai nofs uc h heh asnor igh tt opos s esss uchpr oper tyf oranyot herpur pos ewi th out
decis ion. thec ons entofh ispar tner s;
Thedes ig nat ionofl os sesandpr of itsc annotbei ntr ust edt ooneoft he (2)Apar tner 'sr ig hti ns pec ifi
cpar tner shippr oper tyi snotas signabl e
partner s .(16 90) exc epti nc onnec t i
onwi tht heas s ig nmentofr i
gh tsofal lth epar tner si n
Art.1799. As tipul at ionwh ic hex c ludesoneormor epar tner sf r
omany thes amepr oper ty;
sharei nt hepr of itsorl os sesi sv oi d. (16 91 ) (3)Apar tner 'sr ig hti ns pec ifi
cpar tner shippr oper tyi snots ubj ec tt o
Art.1800. Th epar t nerwh oh asbeenappoi ntedmanag eri nt h ear ticles attac hmentorex ec ution, ex ceptonac l
ai mag ai ns tt hepar tners hip.
ofpar tner sh ipmayex ec ut eal lac t sofadmi ni strat iondes pi teth e Wh enpar tner sh ippr oper tyisat tac hedf orapar tner shipdebtt he
oppos itionofh ispar tner s ,unl es sh es houl dac ti nbadf aith ; andh is par tner s, oranyoft h em, ort her epr es ent at ivesofadec eas edpar tner ,
poweri si rrev oc abl ewi thoutj us torl awf ulc aus e. Th ev ot eoft he cannotc lai manyr ig htundert heh omes teadorex empt ionl aws ;
partner sr epr es ent ingt h ec ont r ollingi nt er es ts h allbenec es sar yf or (4)Apar tner 'sr ig hti ns pec ifi
cpar t ner shippr oper tyi snots ubj ec tt o
suchr ev oc at ionofpower . legals uppor tunderAr ticle291 .(n)
Apowerg rant edaf t ert h epar tner sh iph asbeenc ons titut edmaybe Art. 181 2.Apar tner 'si nter es tint hepar tner shipi sh iss h ar eoft he
revokedatanyt ime. (16 92a) prof itsands ur plus . (n)
Art.1801 . Ift woormor epar tner sh av ebeeni nt rus tedwi tht he Art. 181 3.Ac onv ey anc ebyapar tnerofh iswh olei nt eres ti nt h e
manag ementoft h epar tner sh ipwi th outs pec ific ati onoft hei r par tner sh ipdoesnotofi tselfdi ss ol vet hepar tner s hip, or ,asag ai ns t
respec tivedut ies , orwi th outas tipul at iont hatoneoft hems hallnot theot herpar tner si nt h eabs enc eofag reement , ent itlet heas signee,
actwi t houtt hec ons entofal lt h eot her s, eac honemays epar atel y duringt h ec ont inuanc eoft h epar t ner ship, t oint er fer ei nt he
exec ut eal lac t sofadmi ni s trat ion, buti fanyoft hems houl doppos e manag ementoradmi ni strat i
onoft h epar tner sh ipbus ines soraf fai rs,
theac tsoft h eot h er s ,thedec isionoft h emaj or itys hallpr ev ail.Inc as e ort or equi reanyi nfor mat ionorac c ountofpar t ner s hipt r ans act i
ons ,or
ofat ie, th emat ters hal lbedec idedbyt h epar tner sowni ngt he toins pec tt hepar tner s h
i pbooks ; buti tmer elyent itlest h eas si
g neet o
control l i
ngi nt er es t.( 1693a) recei vei nac cor danc ewi thh isc ont rac tth epr ofit st owh i
c ht he
Art.1802. Inc as ei ts h oul dh av ebeens tipul at edt h atnoneoft he ass igningpar tnerwoul dot her wis ebeent i
tl ed.Howev er , inc as eof
manag ingpar t ner ss h allac twi th outt h ec ons entoft h eot her s ,t
h e fraudi nt h emanag ementoft hepar tner ship, t
heas s igneemayav ail
concur renc eofal ls h al lbenec es sar yf ort hev al idit yoft h eac ts, and hims el foft heus ualr emedi es .
theabs enc eordi sabi li
t yofanyoneoft hemc annotbeal leg ed, unl es s Inc as eofadi ss olut ionoft hepar tner ship, t heas s i
g neei sent itledt o
therei si mmi nentdang erofg r av eori rr epar abl ei nj uryt ot h e recei veh isas s ignor 'si nter es tandmayr equi reanac countf romt h e
partner s hip. (1 694) dateonl yoft hel as tac countag reedt obyal lthepar t
ner s.(n)
Art.1803. Wh ent h emannerofmanag ementh asnotbeenag r eedupon, Art. 181 4.Wi t houtpr ej udi cet ot hepr efer redr igh tsofpar tner ship
thefol l owi ngr ul ess h allbeobs er ved: credi tor sunderAr t i
c le1 827, ondueappl ic at i
ont oac ompet entc our t
(1)Al lt h epar tner ss hal lbec ons ider edag ent sandwh at ev eranyoneof byanyj udg mentc redi torofapar tner ,thec our twh i
c hent er edt h e
themmaydoal ones h allbi ndt hepar tner ship, wi th outpr ejudi cet ot h e judg ment , oranyot herc our t,mayc har get hei nter es toft hedebt or
provis ionsofAr ticle1 801 . par tnerwi thpay mentoft h euns at is fiedamountofs uchj udg mentdebt
(2)Noneoft h epar tner smay , wit houtt hec ons entoft heot h ers, make withi nter es tt her eon; andmayt h enorl at erappoi ntar ec eiverofh is
anyi mpor tantal ter at ioni nt h ei mmov abl epr oper tyoft hepar tner s hip, shar eoft hepr ofits ,andofanyot hermoneydueort of al lduet oh imi n
eveni fi tmaybeus ef ult ot hepar t ner s hip. Buti ft h er ef us alofc ons ent respec toft h epar tner s hip, andmakeal lot h eror der s, dir ect i
ons ,
bytheot h erpar tner si smani f es tlypr ej udi cialt ot h ei nt er es toft he acc ount sandi nqui rieswh icht hedebt orpar tnermi gh th av emade, or
partner s hip, th ec our t'si nt erv ent ionmaybes oug ht. (1695 a) wh i
c ht hec irc ums tanc esoft hec as emayr equi r
e.
Art.1804. Ev er ypar tnermayas soc iat eanot herper sonwi thh imi nh is Thei nt er es tc h ar gedmayber edeemedatanyt imebef or ef or eclos ure,
share, butt h eas soc iates h al lnotbeadmi ttedi nt ot hepar t ner ship orinc as eofas al ebei ngdi rec tedbyt hec our t,maybepur ch ased
withoutt hec ons entofal lt h eot herpar tner s ,ev eni ft hepar tnerh aving withoutt her ebyc aus ingadi s sol ut ion:
anas soc iates houl dbeamanag er . (16 96 ) (1)Wi ths epar at epr oper ty,byanyoneormor eoft hepar tner s;or
Art.1805 . Th epar tner s hipbookss h allbekept , subj ec tt oany (2)Wi thpar t ner s hippr oper ty,byanyoneormor eoft hepar tner swi th
agreementbet weent h epar tner s, att hepr inc ipalpl ac eofbus ines sof thec ons entofal lt hepar tner swh os ei nt eres t
sar enots oc har gedor
thepar t ner s hip, andev er ypar tners hal latanyr eas onabl eh ourh av e sold.
acces st oandmayi ns pec tandc opyanyoft hem. (n) Not hingi nt h isTi t les h allbeh eldt odepr iveapar tnerofh i
sr i
gh t,if
Art.1806 . Par tner ss h al lr enderondemandt rueandf ul li nfor mat ionof any ,undert h eex empt ionl aws , asr eg ardsh isint er es ti nt he
allthing saf fec tingt h epar tner shipt oanypar tnerort h el eg al par tner sh ip. (n)
repres ent at iv eofanydec eas edpar tnerorofanypar tnerunderl eg al  
disabi lity .(n) SECTI ON3. -Obl igat ionsoft h ePar t ners
Art.1807. Ev er ypar tnermus tac c ountt ot hepar tner shipf oranybenef it
, With Reg ar dt oTh irdPer s ons
andh ol dast r us teef ori tanypr of itsder ivedbyh imwi th outt hec ons ent
oftheot h erpar t ner sf romanyt r ans ac tionc onnec tedwi tht he Art.1815.Everypar tner ships halloper ateunderaf irmname, wh ichmay
format ion, conduc t, orl iqui dat ionoft hepar tner sh iporf romanyus eby ormaynoti nc l
udet h enameofoneormor eoft hepar t
ner s.
himofi tspr oper ty. (n) Thosewh o,notbeingmember soft hepar t
ners hi
p,inc l
udet heirnames
Art.1808. Th ec api tal istpar tner sc annoteng ag ef ort hei rownac c ount inthef i
rmname, shallbes ubjec ttot hel i
abilityofapar tner .(n)
inanyoper at ionwh ichi soft h eki ndofbus ines si nwh ic ht he Art.1816.Allpartner s, i
ncludingi ndus trialones ,shallbel iabl epr o
partner s hipi seng ag ed, unl es st h er ei sas tipul ationt ot hec ont rar y. ratawi t
hal ltheirpr oper tyandaf teral lthepar tner shi
pas setsh av e
Anyc api tal is tpar t nerv iol at ingt h ispr oh ibitions hal lbr ingt ot he beenex h austed,fort hec ont r
ac tswh ichmaybeent eredint oi nth e
commonf undsanypr of itsac c rui ngt oh imf romh ist rans ac t ions ,and nameandf ortheac c ountoft h epar tner shi
p, underi tssignat ureandby
shallper sonal lybearal lt hel os ses .(n) aper sonaut horizedt oac tforth epar tner sh
ip. Howev er,anypar tner
Art.1809. Anypar tners h al lh av et her ig htt oaf or malac countast o mayent eri ntoas epar ateobl igationt oper formapar t
ner shipc ont ract
.
partner s hipaf fai rs: (n)
(1)Ifh ei swr ong ful lyex cludedf romt hepar tner shipbus ines sor Art.1817.Anys ti
pul ationag ains tt heliabili
tyl aiddowni nt hepr ec eding
poss es s ionofi t spr oper t ybyh isc o-par tner s ; artic
les hallbev oid, ex c
eptasamongt hepar tners .(
n)
(2)Ift h er igh tex is tsundert h et er msofanyag reement ; Art.1818.Everypar tneri sanag entoft hepar tner s
h ipfort hepur pos e
(3)Aspr ov idedbyar ticle1 807; ofitsbus iness,andt h eac tofev erypar tner,includingt heex ec utioni n
(4)Wh enev erot herc ircums tanc esr enderi tj us tandr eas onabl e. (n) thepar tnershipnameofanyi ns trument , f
orappar entlycar ryingoni n
SECTI ON2. -Pr oper tyRi gh tsofaPar tner theus ualwayt hebus inessoft hepar tner shi
pofwh i
chh ei samember
bindst h
epar t
ners hip,unles st h
epar tners oac t
ingh asinf ac tno
Art
.181
0.Theproper
tyri
ght
sofapart
nerare: authoritytoac tfort hepar t
ner sh i
pi nth epar tic
ularmat ter,andt he
(1
)Hisrig
htsinspec
ifi
cpart
ner
shi
pproper
ty; personwi t
hwh omh ei sdeal i
ngh asknowl edgeoft h efactt hath eh asno
suchaut h or ity. publ icmannerh eisl i
ablet os uc hper son, wh et hert her epr esent ation
Anac tofapar tnerwh ichi snotappar ent lyf ort h ec ar r yingonof hasorh asnotbeenmadeorc ommuni cat edt os uc hper sons og i
v i
ng
bus ines soft h epar tner sh i
pi nt h eus ualwaydoesnotbi ndt h e credi tbyorwi ththeknowl edg eoft heappar entpar t nermaki ngt he
par tner s hipunl es saut hor izedbyt heot herpar tner s . repr es entat ionorc ons ent i
ngt oi t
sbei ngmade:
Exceptwh enaut h or i
z edbyt heot h erpar tner sorunl es st heyh av e (1)Wh enapar tnersh i
pl i
abi l
ityr es ults, h
ei sl i
abl east houg hh ewer e
abandonedt h ebus ines s,oneormor ebutl es st h anal lt hepar tner s anac tualmemberoft hepar tner sh ip;
havenoaut hor ityt o: (2)Wh ennopar t
ners hipliabi lityres ul ts,hei sl iabl epr or at awi tht h e
(1)As s i
g nt h epar tner sh ippr oper tyi nt r us tf orc r edi tor soront he otherper sons ,i
fany ,s ocons ent i
ngt ot hec ont rac torr epr es entat ion
ass ignee' spr omi s et opayt hedebt soft hepar tner sh ip; ast oi nc urliabi l
ity,otherwi ses epar at ely.
(2)Di spos eoft heg ood- willoft hebus ines s; Wh enaper sonh asbeent h usr epr es ent edt obeapar tneri nanex i
s ti
ng
(3)Doanyot herac twh ic hwoul dmakei ti mpos sibl et oc arryont h e par tner ship, orwithoneormor eper s onsnotac t ualpar tner s,hei san
ordi nar ybus ines sofapar tner s hip; agentoft heper sonsc ons ent ingt os uchr epr es ent at iont obi ndt hemt o
(4)Conf es saj udg ment ; thes ameex tentandi nthes amemannerast houg hh ewer eapar t
neri n
(5)Ent eri ntoac ompr omi sec onc er ningapar t ner s hipc l
ai morl iabi lity
; fact, withr es pecttoper sonswh or el yupont h er epr es ent ation. Wh en
(6)Submi tapar tner sh ipc lai morl iabi lityt oar bit rat ion; allt hemember soft heex i
s ti
ngpar tner shipc ons entt ot he
(7)Renounc eac lai moft h epar tner ship. repr es entat ion,apar tner sh i
pac torobl i
g ationr es ul ts;buti nal lot her
Noac tofapar tneri nc ont rav ent ionofar es tr ictiononaut hor itys h all cas esi tist hej ointac torobl igat i
onoft heper sonac tingandt he
bindt hepar tner s hipt oper s onsh av ingknowl edg eoft h er es tric tion. (n) per sonsc ons entingt other epr esent ation. (
n)
Art. 181 9. Wh er et itlet or ealpr oper tyisi nt h epar t ner s hipname, any Art. 1826 .Aper sonadmi ttedasapar t
neri nt oanex istingpar t
ner sh ip
par tnermayc onv eyt it let os uc hpr oper tybyac onv ey anc eex ec ut edi n isliabl ef oral ltheobl igat ionsoft h epar tner shipar isingbef oreh is
thepar tner s hipname; butt hepar tner sh ipmayr ec ov ers uc hpr oper t y admi ssionast houg hh eh adbeenapar tnerwh ens uc hobl igationswer e
unles st hepar t ner 'sac tbi ndst h epar tner sh ipundert h epr ov is ionsof incur red, exc eptt h
att hisl iabilitys hal lbes at i
s fiedonl youtof
thef irs tpar ag raphofar ticle1 81 8, orunl es ss uc hpr oper tyh asbeen par tner shippr oper t
y ,unles st her ei sas tipul ationt ot h ec ont rary.( n)
conv ey edbyt h eg rant eeoraper s onc laimi ngt h roug hs uc hg rant eet oa Art. 1827. Thec r
edi t
or soft h epar tner ships h allbepr efer redt ot hos e
holderf orv aluewi thoutknowl edg et hatt hepar t ner , inmaki ngt he ofeac hpar tnerasr eg ardst hepar tner s h
ippr oper ty .Wi thoutpr ejudi ce
conv ey anc e, h asex ceededh isaut hor i
t y. tot hisr ight,thepr ivatec redi tor sofeac hpar tnermayas kt he
Wh er et itlet or ealpr oper tyi si nt henameoft hepar tner s hip, a attac hmentandpubl i
cs aleoft hes h areoft h el at teri nt h epar tner s hi
p
conv ey anc eex ec ut edbyapar t ner , inh isownname, pas sest he ass ets .(n)
equi tabl ei nter es toft hepar tner s hip, pr ov idedt heac ti sonewi th i
nt he  
auth or ityoft hepar tnerundert hepr ov is i
onsoft h ef ir stpar ag r aphof CHAPTER3
Artic le1 81 8. DISSOLUTI ONANDWI NDI NGUP
Wh er et itlet or ealpr oper tyi si nt henameofoneormor ebutnotal l
thepar tner s ,andt her ec orddoesnotdi sclos et her ig htoft h e Art. 1828. Th edi s sol ut i
onofapar tner s hipi st hec h ang ei nt h er elat ion
par tner s hip, t hepar tner si nwh os enamet h et itles tandsmayc onv ey oft hepar tner sc aus edbyanypar tnerc eas ingt obeas s
oc iat edi nt he
tit
let os uc hpr oper ty,butt h epar tner s hipmayr ec ov ers uc hpr oper tyi f carr yingonasdi s ting uis hedf romt h ewi ndi ngupoft hebus i
nes s.(n)
thepar tner s 'ac tdoesnotbi ndt hepar tner s hi pundert hepr ov isionsof Art. 1829. Ondi ssol ut i
ont hepar tner sh ipi snott er mi nat ed, but
thef irs tpar ag raphofAr tic le1 81 8, unles st hepur c has erorh isas signee, cont inuesunt ilth ewi ndi ngupofpar tner shipaf fair sisc ompl et ed.( n)
isah ol derf orv al ue, wi thoutknowl edg e. Art. 1830. Di ssol ut ioni sc aus ed:
Wh er et h et itlet or ealpr oper tyi si nt h enameofoneormor eoral lt he  
par tner s ,ori nat h irdper soni nt rus tfort hepar tner s hip, ac onv ey anc e (1)Wi th outv iol at ionoft heag reementbet weent h epar tner s:
exec utedbyapar t neri nt hepar tner sh ipname, ori nh i sownname, (a)Byt h et ermi nat ionoft hedef ini tet er morpar ticul arunder taki ng
pas s est h eequi t abl ei nt er es toft hepar tner sh ip, pr ov idedt heac tis spec if i
edi nt h eag r eement ;
onewi thint heaut h or ityoft h epar tnerundert h epr ov is ionsoft h ef irst (b)Byt h eex pr es swi llofanypar tner , wh omus tac ti ng oodf aith ,wh en
par ag raphofAr ticle1 81 8. nodef initet er morpar ticul ari ss pec ified;
Wh er et h et itlet or ealpr oper tyi si nt h enameofal lt hepar tner sa (c)Byt heex pr es swi llofal lt hepar tner swh oh av enotas sig nedt hei r
conv ey anc eex ec ut edbyal lt hepar tner spas s esal lt hei rr igh tsi ns uc h inter es tsors uffer edt h emt obec h arg edf ort heirs epar at edebt s,
proper ty .(n) eitherbef or eoraf tert h et ermi nat ionofanys pec if iedt er mor
Art. 1820. Anadmi s sionorr epr es ent ationmadebyanypar tner par ticul arunder taki ng ;
conc er ni ngpar t ner s hipaf fai rswi th int hes c opeofh isaut hor ityi n (d)Byt h eex pul sionofanypar tnerf romt hebus ines sbonaf idei n
acc or danc ewi t ht h isTi tlei sev idenc eag ains tt hepar tner sh ip. (n) acc or danc ewi ths uc hapowerc onf er redbyt heag r eementbet weent he
Art. 1821 .Not icet oanypar tnerofanymat terr el at ingt opar tner s hip par tner s;
affai rs, andt heknowl edg eoft h epar tnerac tingi nt h epar ticul ar (2)I nc ont rav ent ionoft h eag reementbet weent hepar t
ner s, wh eret h
e
mat t er, ac qui redwh ileapar tnerort henpr es entt oh ismi nd, andt h e cir
c ums tanc esdonotper mi tadi ss olut ionunderanyot h erpr ov isi
onof
knowl edg eofanyot h erpar tnerwh or eas onabl yc oul dands h oul dh av e thi
sar ticle, byt h eex pr es swi llofanypar tneratanyt ime;
communi cat edi tt ot h eac tingpar tner , oper at easnot icet oor (3)Byanyev entwh ichmakesi tunl awf ulf ort hebus ines soft he
knowl edg eoft h epar tner sh ip, ex c epti nt h ec as eoff raudont he par tner shipt obec ar riedonorf ort hemember st oc ar r
yi toni n
par tner s hip, c ommi ttedbyorwi tht h ec ons entoft hatpar t
ner .(n) par tner ship;
Art. 1822. Wh er e, byanywr ong fulac toromi ss ionofanypar tnerac ting (4)Wh enas pec if ict hingwh ichapar t
nerh adpr omi s edt oc ont ribut et o
inth eor di nar yc our seoft hebus i
nes soft hepar tner s hiporwi tht he thepar tner sh ip, per ish esbef or et h edel ivery;inanyc as ebyt hel os sof
auth or ityofc o- par tner s, los sori njur yi sc aus edt oanyper s on, not thet h ing ,wh ent hepar tnerwh oc ont ribut edi thav ingr es er vedt h e
beingapar tneri nt hepar tner s hip, oranypenal t yi si nc ur red, th e owner s hipt her eof ,h asonl yt rans fer redt ot hepar tner shipt h eus eor
par tner s hipi sl iabl et her ef ort ot h es ameex t entast h epar tners o enjoy mentoft hes ame; butt hepar t ner s hips hallnotbedi ss olvedby
actingoromi ttingt oac t.(n) thel os soft het h ingwh eni toc c ursaf t ert hepar tner shiph asac qui red
Art. 1823. Th epar tner s hipi sboundt omakeg oodt h el os s : theowner sh i
pt her eof ;
(1)Wh er eonepar t nerac tingwi thint h
es copeofh isappar entaut hor ity (5)Byt hedeat hofanypar tner ;
recei vesmoneyorpr oper tyofat h i
r dper s onandmi sappl iesi t;and (6)Byt hei ns ol venc yofanypar tneroroft hepar tner s
h i
p;
(2)Wh eret h epar tner shipi nt hec our seofi tsbus ines sr ec eiv esmoney (7)Byt h ec ivilint er dic tionofanypar tner ;
orpr oper tyofat hirdper sonandt h emoneyorpr oper t ys or ec ei vedi s (8)Bydec reeofc our tundert hef ollowi ngar ti
cle. (1 700aand1 701a)
mis appl iedbyanypar tnerwh ilei ti sint hec us todyoft hepar tner sh ip. Art. 1831 .Onappl icat ionbyorf orapar t nert hec our ts halldec reea
(n) diss olut ionwh enev er :
Art. 1824. Al lpar tner sar el iabl es ol i
dar ilywi tht h epar tner sh i
pf or (1)Apar tnerh asbeendec lar edi ns anei nanyj udi c i
alpr oc eedi ngori s
ever y thingc h ar geabl et ot h epar tner shipunderAr tic les1 822and1 823. shownt obeofuns oundmi nd;
(n) (2)Apar tnerbec omesi nanyot h erwayi nc apabl eofper f or mi ngh is
Art. 1825 .Wh enaper s on, bywor dss pokenorwr ittenorbyc onduc t, par toft hepar tner sh i
pc ont rac t;
repr es ent sh ims el f,orc ons ent st oanot h err epr es ent ingh i
mt oany one, (3)Apar tnerh asbeeng uiltyofs uc hc onduc tast endst oaf f ec t
asapar tneri nanex is ti
ngpar tner sh i
porwi thoneormor eper sonsnot prej udi c i
allyt hec ar ryingonoft hebus ines s;
actualpar tner s, hei sl iabl et oanys uc hper sonst owh oms uc h (4)Apar tnerwi lf ullyorper sistent lyc ommi tsabr eac hoft he
repr es ent at ionh asbeenmade, wh oh as , ont h ef ait hofs uc h par tner shipag reement , orot her wi ses oc onduc tsh ims elfi nmat t
er s
repr es ent at ion, g ivenc redi tt ot heac tualorappar entpar tner s hip, and relat ingt ot hepar tner s hipbus ines st hati tisnotr eas onabl y
ifheh asmades uc hr epr es ent at i
onorc ons ent edt oi tsbei ngmadei na prac tic abl et oc ar ryont hebus ines sinpar t
ner shipwi thh im;
(5)Th ebus ines soft hepar tner s hipc anonl ybec ar riedonatal oss; par tner s hipaf f ai rs ,pr ov ided, howev er ,t hatanypar t ner ,h isl eg al
(6)Ot h erc irc ums t anc esr enderadi ss olut ionequi tabl e. repr es ent at iveorh isas s ignee, uponc aus es hown, mayobt ainwi ndi ng
Ont heappl ic at ionoft h epur ch as erofapar tner '
si nt er es tunder upbyt hec our t.( n)
Artic le1 81 3or1 81 4: Ar t. 1837. Wh endi ss ol utioni sc aus edi nanyway , ex c epti n
(1)Af tert h et er mi nat i
onoft h es pec if
i edt er morpar tic ul ar cont rav ent ionoft hepar tner s hipag reement ,eac hpar tner ,asag ains t
under taki ng ; hisc o- par tner sandal lper sonsc lai mi ngt h roug ht h emi nr es pec tof
(2)Atanyt imei ft hepar t
ner shipwasapar tner s hipatwi llwh ent he thei ri nt eres tsi nt h epar tner sh ip, unl es sot her wi seag reed, mayh av e
inter es twasas s ignedorwh ent hec h ar gingor derwasi ss ued. (n) thepar tner s hippr oper tyappl iedt odi sc har g ei tsl i abi l
it i
es ,andt h e
Art. 1832. Ex cepts of arasmaybenec es sar yt owi nduppar tner sh i
p sur pl usappl iedt opayi nc as ht h enetamountowi ngt ot her es pec t i
v e
affai rsort oc ompl et et rans ac tionsbeg unbutnott h enf ini sh ed, par tner s .Buti fdi s sol ut ioni sc aus edbyex pul s ionofapar t ner , bona
diss olut iont er mi nat esal laut h or i
t yofanypar tnert oac tf ort h e fideundert hepar tner sh ipag reementandi ft heex pel l
edpar t neri s
par tner s h ip: dis ch ar gedf romal lpar tner s hipl iabi lities , ei therbypay mentor
(1)Wi thr es pec tt ot h epar tner s: ag reementundert hes ec ondpar ag r aphofAr tic le1 835 , hes h al lr ec eive
(a)Wh ent h edi ss ol ut ioni snotbyt h eac t,ins ol v enc yordeat hofa inc as honl yt h enetamountdueh imf romt hepar tner sh ip.
par tner ; or Wh endi s sol ut i
oni sc aus edi nc ont r av ent ionoft h epar tner s h i
p
(b)Wh ent h edi ss ol ut ioni sbys uc hac t,ins ol venc yordeat hofapar tner, ag reementt her ig htsoft h epar tner ss hal lbeasf ol lows :
inc as eswh er ear ti cle1 833s or equi res ; (1)Eac hpar tnerwh oh asnotc aus eddi s sol ut ionwr ong fullys hal lh av e:
(2)Wi thr es pec tt oper sonsnotpar tner s ,asdec lar edi nar ticle1 834.(n)  
Art. 1833. Wh er et h edi s solut ioni sc aus edbyt h eac t, deat hor (a)Al lt her igh tss pec ifiedi nt hef irs tpar ag raphoft hisar tic l
e, and
insol venc yofapar tner , eac hpar tneri sl iabl et oh isc o-par tner sf orhis (b)Th er i
g ht ,asag ai ns teac hpar tnerwh oh asc aus edt h edi ss ol ution
shar eofanyl iabi lit yc reat edbyanypar tnerac tingf ort h epar t ner s
hip wr ong ful l
y ,todamag esbr eac hoft heag reement .
asi ft h epar tner sh iph adnotbeendi ssol vedunl es s: (2)Th epar tner swh oh av enotc aus edt hedi s sol ut ionwr ong full y,ift h ey
(1)Th edi s sol ut ionbei ngbyac tofanypar tner , th epar tnerac tingf or alldes iret oc ont inuet hebus i
nes si nt h es amenameei th erby
thepar tner sh iph adknowl edg eoft hedi ssol ut ion; or thems el vesorj oi nt lywi thot her s ,maydos o, dur ingt h eag reedt er mf or
(2)Th edi s sol ut ionbei ngbyt hedeat hori ns ol venc yofapar tner , t
he thepar tner s hipandf ort h atpur pos emaypos ses st h epar tner s hip
par tnerac tingf ort h epar tner sh iph adknowl edg eornot iceoft hedeat h pr oper ty ,pr ov idedt heys ec ur et h epay mentbybondappr ov edbyt he
ori ns olv enc y. cour t, orpayanypar tnerwh oh asc aus edt h edi ss ol ut i
onwr ong ful ly, the
Art. 1834. Af terdi s sol ut ion, apar tnerc anbi ndt h epar tner s hip, ex cept val ueofh isi nt er es ti nt h epar tner sh i
patt hedi s sol ut ion, les sany
aspr ov idedi nt het h irdpar ag raphoft hisar tic le: damag esr ec ov er abl eundert hes ec ondpar ag raph ,No. 1( b)oft h is
(1)Byanyac tappr opr iat ef orwi ndi nguppar tner sh i
paf fai rsor ar ticl e, andi nl ikemanneri ndemni f yh imag ains tal lpr es entorf ut ur e
compl et ingt r ans ac t i
onsunf i
ni s hedatdi ss olut ion; par tner s hipl i
abi lities .
(2)Byanyt rans ac t ionwh ichwoul dbi ndt hepar t ner s h i
pi fdi ssol ution (3)Apar tnerwh oh asc aus edt h edi ss ol utionwr ong fullys h al lh av e:
hadnott akenpl ac e, pr ovidedt heot herpar tyt ot het rans ac tion:  
(a)Hadex tendedc r edi tt ot hepar tner sh i
ppr iort odi ss ol ut i
onandh ad (a)I ft hebus i
nes si snotc ont i
nuedundert h epr ov is ionsoft hes ec ond
noknowl edg eornot ic eoft h edi ss olut ion; or par ag raph ,No. 2, al lt h er ig htsofapar tnerundert h ef irstpar ag raph ,
(b)Th oug hh eh adnots oex tendedc redi t,h adnev er th el es sknownof subj ec tt ol iabi li tyf ordamag esi nt hes ec ondpar ag raph , No. 1( b) ,of
thepar tner sh ippr i ort odi ss olut ion, and, hav ingnoknowl edg eornot i
ce thisar ticle.
ofdi s sol ut ion, thef ac tofdi s sol utionh adnotbeenadv er ti sedi na (b)I ft hebus i
nes si sc ont inuedundert hes ec ondpar ag raph , No. 2, of
news paperofg ener alc irculat ioni nt hepl ac e( ori neac hpl ac ei fmor e thisar ticle, th er igh tasag ai ns th i
sc o- par tner sandal lc lai mi ng
thanone)atwh ic ht hepar tner sh ipbus ines swasr eg ul ar lyc ar riedon. thr oug ht hemi nr es pec toft h eiri nt er es t si nt h epar tner s hip, toh av e
Thel iabi lityofapar tnerundert h ef irs tpar ag raph ,No. 2, sh allbe thev al ueofh isi nt er es ti nt h epar tner sh ip, les sanydamag ec aus edt o
satis fiedoutofpar tner s hi
pas set sal onewh ens uc hpar tnerh adbeen hisc o- par tner sbyt h edi s sol ut i
on, as cer tai nedandpai dt oh imi nc as h,
priort odi s sol ut ion: ort hepay ments ec ur edbyabondappr ov edbyt hec our t,andt obe
(1)Unknownasapar tnert ot heper sonwi thwh omt h ec ont rac ti smade; rel eas edf romal lex i
s tingl iabi litiesoft hepar tner sh i
p; buti n
and as cer taini ngt hev al ueoft h epar tner 'si nt er es tt hev al ueoft heg ood-
(2)Sof arunknownandi nac tivei npar t ner sh ipaf fair st hatt hebus i
ness wil loft h ebus ines ss hal lnotbec ons i
der ed. (n)
reput ationoft h epar tner sh ipc oul dnotbes ai dt oh av ebeeni nany Ar t. 1838. Wh ereapar tner sh i
pc ont rac ti sr es cindedont heg roundof
deg reeduet oh isc onnec ti
onwi thi t. thef r audormi s repr es ent at ionofoneoft h epar tiest her et o, t hepar ty
Thepar tner s hipi si nnoc as eboundbyanyac tofapar tneraf ter ent it ledt or es c indi s, with outpr ej udi c et oanyot h err ight, ent itled:
diss olut ion: (1)Toal ienon, orr ig htofr et ent i
onof , thes urpl usoft hepar tner s hip
(1)Wh eret h epar tner s hipi sdi ss olvedbec aus ei ti sunl awf ult oc arry pr oper tyaf ters at isf yingt hepar tner s hipl iabi litiest ot hirdper sonsf or
ont h ebus ines s, unl es st heac ti sappr opr iat ef orwi ndi ngup anys umofmoneypai dbyh imf ort h epur c has eofani nter es ti nt he
par tner s h ipaf fai rs ; or par tner s hipandf oranyc api taloradv anc esc ont ri but edbyh im;
(2)Wh er et hepar t nerh asbec omei ns ol vent ; or (2)Tos tand, af teral ll iabi litiest ot hir dper sonsh av ebeens at isfied,
(3)Wh er et hepar t nerh asnoaut hor ityt owi nduppar tner sh ipaf fairs; int h epl ac eoft h ec r edi tor soft h epar tner sh ipf oranypay ment smade
exc eptbyat rans ac tionwi thonewh o: byh imi nr es pec toft h epar tner s hipl iabi lities ; and
(a)Hadex tendedc r edi tt ot hepar tner sh i
ppr iort odi ss ol ut i
onandh ad (3)Tobei ndemni fiedbyt h eper s ong ui ltyoft hef raudormaki ngt he
noknowl edg eornot ic eofh i
swantofaut h or ity; or repr es ent at ionag ai ns tal ldebt sandl iabi litiesoft h epar t ner s h i
p. (n)
(b)Hadnotex tendedc r editt ot hepar tner s hippr iort odi s sol ut ion,and, Ar t. 1839. Ins et tlingac count sbet weent hepar tner saf t
erdi ss ol ut i
on,
hav ingnoknowl edg eornot iceofh iswantofaut h orit y,th ef ac tofh is thef ol lowi ngr ul ess h allbeobs er ved, s ubj ec ttoanyag r eementt ot he
wantofaut hor ityh asnotbeenadv er tisedi nt h emannerpr ov idedf or cont rar y:
adv er tisingt hef ac tofdi ssolut ioni nt h ef irs tpar ag raph ,No. 2( b). (1)Th eas s et soft h epar tner s hi par e:
Not h ingi nt h isar tic les hallaf fec tt h el iabi lityunderAr tic le1 825ofany  
per sonwh o, af terdi s sol ution, r epr es ent sh ims el forc ons ent st o (a)Th epar tner sh ippr oper ty ,
anot h err epr es ent ingh imasapar tneri napar tner sh ipeng ag edi n (b)Th ec ont ribut ionsoft hepar t ner snec es s ar yf ort h epay mentofal l
carr yingbus ines s. (n) thel iabi litiess pec ifiedi nNo. 2.
Art. 1835 .Th edi ss ol ut i
onoft h epar tner shipdoesnotofi ts elf (2)Th el iabi litiesoft hepar tner s hips h allr anki nor derofpay ment , as
disc har g et heex ist ingl iabilityofanypar tner . fol lows :
Apar tneri sdi sc h ar g edf r
omanyex istingl iabi lityupondi s sol ut ionof  
thepar tner sh ipbyanag reementt ot hatef f ec tbet weenh ims el f,the (a)Th os eowi ngt oc redi tor sot h ert hanpar t ner s ,
par tner s h ipc redi t orandt heper s onorpar t ner s h ipc ont inui ngt h e (b)Th os eowi ngt opar tner sot h ert h anf orc api t alandpr of its,
bus ines s; ands uc hag reementmaybei nfer redf romt h ec our s eof (c)Th os eowi ngt opar tner si nr es pec tofc api tal ,
deal ingbet weent h ec redi torh av ingknowl edg eoft h edi ss ol ut ionand (d)Th os eowi ngt opar tner si nr es pec tofpr of its .
theper sonorpar tner shipc ont inui ngt hebus ines s . (3)Th eas s et ss h al lbeappl i
edi nt h eor deroft h ei rdec lar at ioni nNo. 1
Thei ndi vidualpr oper tyofadec eas edpar tners hal lbel iabl ef oral l oft hisar tic let ot h es at isfac tionoft hel iabi lities .
oblig at ionsoft h epar tner shipi nc ur redwh ileh ewasapar tner ,but (4)Th epar tner ss hal lc ont ribut e, aspr ov idedbyar ticle1 797, th e
subj ec tt ot hepr iorpay mentofh iss epar at edebt s. (n) amountnec es sar yt os at isfyt hel iabi lities .
Art. 1836 .Unl es sot her wi seag reed, t hepar t ner swh oh av enot (5)Anas sig neef ort h ebenef itofc redi tor soranyper sonappoi ntedby
wrong ful lydi ss ol vedt hepar tner s hiport hel eg alr epr es ent at i
v eoft he thec our ts h allh av et h er ig htt oenf or c et h ec ont ribut i
onss pec ifiedi n
lasts urv ivingpar tner , noti ns ol vent ,hast her ig htt owi ndupt he thepr ec edi ngnumber .
(6 )Anypar tnerorh isl eg alr epr es ent at i
v es h al lhav et h er i
g h tto part
ner,orhislegalrepresentati
veasagai
nstth
ewi ndinguppartners
enf or c et hec ont ribut ionss pec ifiedi nNo. 4, tot heex tentoft he orthesurvi
vingpartnersort h
eper s
onorpart
nersh
ipc onti
nuingt
h e
amountwh ichh eh aspai di nex c es sofh iss h ar eoft hel iabi lity . busi
ness,atthedateofdi s
solut
ion,i
nth
eabsenceofanyag reement
(7)Th ei ndi vidualpr oper tyofadec eas edpar tners hal lbel iabl ef or toth
ec ontr
ar y
.(n) 
thec ont ribut ionss pec if iedi nNo. 4.  
(8)Wh enpar tner s h ippr oper tyandt hei ndi vidualpr oper t i
esoft h e CHAPTER4
par tner sar ei npos s es sionofac our tf ordi st ribut ion, par tner s hip LIMITEDPARTNERSHI P( n)
credi tor ss h allh av epr ior ityonpar tner sh ippr oper tyands epar at e
credi tor soni ndi vi dualpr oper t y,s av ingt h er igh tsofl ienors ec ur ed Ar t
.1 843. Al imi tedpar tner sh ipi sonef or medbyt woormor eper s ons
credi tor s . undert hepr ov is ionsoft h ef ol lowi ngar tic le, hav ingasmember soneor
(9)Wh er eapar tnerh asbec omei ns ol ventorh ises tat ei si ns ol vent , the mor eg ener alpar tner sandoneormor el imi t edpar tner s.Th el i
mi ted
clai msag ains th iss epar at epr oper tys h allr anki nt hef ol lowi ngor der : par tner sass uc hs h al lnotbeboundbyt heobl i
g at i
onsoft he
  par tner s hip.
(a)Th os eowi ngt os epar at ec redi tor s; Ar t
.1 844. Twoormor eper s onsdes iringt of or mal imi tedpar tner ship
(b)Th os eowi ngt opar tner s hipc redi tor s ; shall :
(c )Th os eowi ngt opar tner sbywayofc ont ribut ion. (n) (1)Si g nands weart oac er tifi cat e, wh ichs hal ls tat e-  
Ar t. 1840. Int h ef ol lowi ngc as esc r edi tor soft hedi ss olv edpar tner ship  
ar eal s oc redi tor soft h eper s onorpar tner s hipc ont inui ngt hebus ines s
: (a)Th enameoft h epar tner sh ip, addi ngt her etot hewor d "Li mi ted" ;
(1)Wh enanynewpar tneri sadmi t tedi nt oanex istingpar tner ship, or (b)Th ec har ac teroft hebus ines s;
wh enanypar tnerr et iresandas s ig ns( ort her epr es ent at iv eoft he (c)Th el oc at ionoft hepr inc ipalpl ac eofbus ines s ;
dec eas edpar tneras signs )h isr ig h tsi npar t ner s hippr oper tyt ot woor (d)Th enameandpl ac eofr es idenc eofeac hmember ,g ener aland
mor eoft hepar tner s, ort ooneormor eoft h epar tner sandoneor limitedpar tner sbei ngr es pec tivel ydes ig nat ed;
mor et hir dper s ons ,ift h ebus ines si sc ont inuedwi th outl iqui dat ionof (e)Th et er mf orwh icht h epar tner s hipi st oex i
s t;
thepar tner sh ipaf fai rs; (f)Th eamountofc as handades cript ionofandt heag reedv al ueoft he
(2)Wh enal lbutonepar tnerr et ireandas sig n( ort h er epr es ent at iveof otherpr oper tyc ont ribut edbyeac hl imi tedpar tner ;
adec eas edpar tneras sig ns )t h ei rr igh tsi npar tner s hippr oper tyt ot he (g)Th eaddi tionalc ont ribut ions ,ifany , t
obemadebyeac hl i
mi ted
remai ni ngpar tner ,wh oc ont inuest h ebus ines swi thoutl iqui dat i
onof par tnerandt het imesatwh i
c horev ent sont h eh appeni ngofwh icht hey
par tner s hipaf fai rs , eith eral oneorwi thot her s ; shallbemade;
(3)Wh enanypar t nerr et i resordi esandt h ebus i
nes soft hedi ssol ved (h)Th et ime, ifag reedupon, wh ent hec ont r i
but ionofeac hl imi ted
par tner s hipi sc ont inuedass etf or thi nNos . 1and2oft hisar t icle, wi t
h par tneri st ober et urned;
thec ons entoft her et iredpar tner sort her epr es ent at iv eoft h e (i)Th es har eoft h epr of itsort h eot herc ompens at i
onbywayofi nc ome
dec eas edpar tner , butwi th outanyas s i
g nmentofh isr igh ti n wh i
c heac hl imi tedpar tners h al lrec eivebyr eas onofh isc ont ribut ion;
par tner s hippr oper ty ; (j)Th er igh t,ifg iv en, ofal imi t edpar tnert os ubs t i
tut eanas sig neeas
(4)Wh enal lt hepar tner sort h eirr epr es ent at iv esas s ignt hei rr ig htsi n cont ribut ori nh i
spl ac e, andt h et er msandc ondi tionsoft h e
par tner s hippr oper tyt ooneormor et hirdper s onswh opr omi set opay subs titut ion;
thedebt sandwh oc ont inuet h ebus ines soft h edi ss olv edpar tner s hip; (k)Th er ig ht, ifg iven, oft h epar tner st oadmi taddi tionall imi ted
(5 )Wh enanypar tnerwr ong f
ul lyc aus esadi s sol ut ionandt her emai ning par tner s ;
par tner sc ont inuet h ebus ines sundert h epr ov isionsofar tic le1 837, (l)Th er igh t,ifg iv en, ofoneormor eoft h el imi tedpar tner st opr i
or it
y
sec ondpar ag raph , No. 2, ei t
h eral oneorwi t hot her s, andwi thout overot h erl imi tedpar tner s, ast oc ont ribut ionsorast oc ompens ation
liqui dat ionoft hepar tner s hipaf f ai rs; bywayofi nc ome, andt henat ur eofs uc hpr ior i
ty ;
(6 )Wh enapar tneri sex pel l
edandt her emai ni ngpar tner sc ont inuet he (m)Th er ig ht, ifg iven, oft her emai ni ngg ener alpar tnerorpar tner st o
bus ines sei theral oneorwi thot h er swi th outl iqui dat ionoft he cont inuet h ebus ines sont h edeat h, retirement ,civ i
li nter di ction,
par tner s hipaf fai rs . insani tyori ns olv enc yofag ener alpar tner ; and
Th el iabi li
t yofat h irdper s onbec omi ngapar tneri nt h epar tner sh ip (n)Th er ig ht, ifg iven, ofal imi tedpar tnert odemandandr ecei ve
cont inui ngt hebus ines s , undert h isar t icle, t ot h ec redi tor soft he proper tyot hert h anc as hi nr et urnf orh isc ont r
ibut i
on.
dis s olv edpar tner sh ips h al lbes at is fi
edoutoft h epar tner s hip (2)Fi lef orr ec ordt h ec er tific at ei nt h eOf fic eoft h eSec ur itiesand
pr oper t
yonl y, unl es st h er ei sas tipul at iont ot hec ont rar y. Ex c
h ang eCommi s sion.
Wh ent h ebus ines sofapar tner shipaf terdi ss ol utioni sc ont inued Al i
mi tedpar tner s hipi sf or medi ft her eh asbeens ubs tant ial
underanyc ondi tionss etf ort hi nt h isar tic let hec redi t or soft he compl ianc ei ng oodf ai thwi tht h ef or eg oingr equi r ement s .
dis s olv edpar tner sh ip, asag ai ns tt h es epar at ec redi tor soft her et i
r i
ng Ar t
.1 845 . Th ec ont ribut i
onsofal i
mi tedpar tnermaybec as hor
ordec eas edpar tnerort her epr es ent at iveoft hedec eas edpar tner , proper ty, butnots er vices .
hav eapr i
orr igh tt oanyc laimoft her et iredpar tnerort h e Ar t
.1 846 . Th es urnameofal imi tedpar tners hal lnotappeari nt h e
repr es ent at iveoft hedec eas edpar tnerag ai ns tt heper sonor par tner s hipnameunl es s :
par tner s hipc ont inui ngt h ebus ines s ,onac c ountoft h er etir edor (1)Iti sal s ot h es ur nameofag ener alpar tner ,or
dec eas edpar tner 'si nt er es ti nt hedi s sol v edpar tner s hiporonac count (2)Pr iort ot het imewh ent hel imi tedpar tnerbec ames uc h ,th e
ofanyc ons ider at ionpr omi sedf ors uc hi nt er es torf orh isr igh ti n bus i
nes sh asbeenc ar riedonunderanamei nwh ic hh iss ur name
par tner s hippr oper ty . appear ed.
Not h ingi nt h isar tic les hal lbeh el dt omodi fyanyr ightofc redi t
or st o Al i
mi tedpar tnerwh os es ur nameappear si napar tner s hipname
setas ideanyas sig nmentont heg r oundoff r aud. cont rar yt ot hepr ov is ionsoft hef ir stpar ag raphi sl iableasag ener al
Th eus ebyt heper s onorpar tner sh ipc ont inui ngt hebus ines soft h e par tnert opar tner sh ipc redi tor swh oex tendc r
edi ttot h epar tner sh i
p
par tner s hipname, ort h enameofadec eas edpar t neraspar tt her eof , withoutac tualknowl edg et hath ei snotag ener alpar tner .
sh al lnotofi tsel fmaket hei ndi v idualpr oper tyoft h edec eas ed Ar t
.1 847. Ift hec er tific at ec ont ainsaf al ses tat ement ,onewh os uf fers
par tnerl iabl ef oranydebt sc ont rac tedbys uc hper s onorpar t ner sh ip. lossbyr el ianc eons uc hs tat ementmayh ol dl iabl eanypar tyt ot he
(n) certific at ewh oknewt hes tat ementt obef al se:
Ar t. 1841 .Wh enanypar tnerr et iresordi es ,andt hebus ines si s (1)Att h et imeh es i
g nedt h ec er tificat e, or
cont inuedunderanyoft h ec ondi tionss etf or t hi nt hepr ec edi ngar tic l
e, (2)Subs equent ly, butwi th inas uffic i
entt i
mebef or et hes tat ementwas
ori nAr ticle1 837, s ec ondpar ag r aph ,No. 2, wi th outanys et tlementof reliedupont oenabl eh imt oc anc eloramendt hec er ti
fic at e, ort of il
e
ac c ount sasbet weenh imorh ises tat eandt heper s onorpar tner sh ip apet itionf ori tsc anc el lat ionoramendmentaspr ov idedi nAr tic le
cont inui ngt hebus ines s , unl es sot h er wi seag reed, h eorh isl eg al 1865 .
repr es ent at iveasag ains ts uc hper s onorpar tner sh ipmayh av et he Ar t
.1 848. Al imi tedpar tners h allnotbec omel i
abl easag ener al
val ueofh isi nter es tatt h edat eofdi ss olut ionas cer tai ned, ands hal l par tnerunl es s ,inaddi tiont ot h eex er ciseofh isr i
g htsandpower sasa
rec ei v easanor di nar yc redi toranamountequalt ot h ev alueofh is limitedpar tner ,het akespar ti nt hec ont roloft hebus ines s .
inter es ti nt hedi s sol v edpar tner sh ipwi thi nt er es t,or ,ath isopt ionor Ar t
.1 849. Af tert hef or mat ionofal ift edpar tner s hip, addi tionall i
mi ted
att heopt ionofh isl eg alr epr es ent ativ e, inl ieuofi nt er es t, thepr ofits par tner smaybeadmi t teduponf ilinganamendmentt ot h eor iginal
at tribut abl et ot heus eofh isr igh ti nt h epr oper tyoft h edi s sol ved certific at ei nac c or danc ewi tht her equi rement sofAr ti
c le1 865 .
par tner s hip; pr ov idedt h att hec r edi tor soft hedi s sol vedpar tner sh ipas Ar t
.1 85 0. Ag ener alpar tners hal lh av eal lt her ig htsandpower sandbe
ag ai ns tt hes epar at ec redi tor s, ort her epr es ent ativ eoft h er et iredor subjec tt oal lt her es tric tionsandl iabi litiesofapar tneri na
dec eas edpar tner , sh allh av epr ior ityonanyc lai mar isingundert h i
s par tner s hipwi th outl imi t edpar tner s.Howev er ,wi th outt h ewr itten
ar tic le, aspr ov idedAr ticle1 840, thi rdpar ag raph .(n) cons entorr at ificat ionoft h es pec ificac tbyal lt h el imit edpar tner s,a
Ar t. 1842. Th er ig htt oanac countofh isi nter es ts h allac c ruet oany gener alpar tneroral loft h eg ener alpar tner sh av enoaut hor ityt o:
(1)Doanyac ti nc ont rav ent ionoft hec ertific ate; rightful lydemandt her etur nofh isc ont ribut i
on:
(2)Doanyac twh ic hwoul dmakei ti mpos s iblet oc ar r yont h eor dinar y (1)Ont h edi ss ol utionofapar tner sh i
p; or
bus ines soft h epar tner ship; (2)Wh ent hedat es pec ifiedi nt hec er tificat ef ori tsr et ur nh asar riv ed,
(3)Conf es saj udg mentag ai ns tt hepar tner s hip; or
(4)Pos ses spar tner sh ippr oper ty, oras s i
g nt h eirr ig htsi ns pec ific (3)Af terh eh ass i
xmont h s' not icei nwr itingt oal lot h ermember s, ifno
par tner shippr oper ty, forot h ert hanapar tner sh i
ppur pos e; timei ss pec ifiedi nt h ec er tifi cate, eit herf ort h er et ur noft he
(5)Admi taper s onasag ener alpar tner ; cont ribut ionorf ort hedi s sol ut ionoft h epar tner s hip.
(6)Admi taper s onasal imi tedpar t ner ,unl es st her ig hts ot odoi s Int heabs enc eofanys tat ementi nt hec er tificat et ot h ec ont raryort he
giveni nt h ec er t ificat e; cons entofal lmember s,al imi tedpar tner ,irres pec tiveoft h enat ur eof
(7)Cont inuet hebus ines swi thpar tner s hippr oper tyont hedeat h , hisc ont r ibut ion, hasonl yt h er ightt odemandandr ec ei vec as hi nr et urn
retirement ,ins ani t y,c ivilint er di c tionori ns olv enc yofag ener al forh isc ont ribut ion.
par tner ,unl es st her ig h ts ot odoi sg iveni nt hec er tific at e. Al imi tedpar tnermayh av et hepar tner sh ipdi ssol vedandi tsaf fairs
Art. 185 1. Al imi t edpar tners h al lh av et hes amer igh tsasag ener al woundupwh en:
par tnert o: (1)Her ig htf ullybutuns uc c es sful lydemandst her etur nofh is
(1)Hav et h epar tner sh ipbookskeptatt hepr inc ipalpl ac eofbus ines s cont ribut ion, or
oft hepar tner sh ip, andatar eas onabl eh ourt oi ns pec tandc opyanyof (2)Th eot h erl iabi l itiesoft h epar tner s hiph av enotbeenpai d, ort h e
them; par tner s hippr oper tyi si ns uf ficientf ort hei rpay mentasr equi redby
(2)Hav eondemandt r ueandf ul li nf or mat i
onofal lt h ing saf fec ting thef irs tpar ag raph ,No. 1 ,andt h el imi t edpar tnerwoul dot her wis ebe
thepar tner sh ip, andaf ormalac countofpar tner s hipaf fair swh enev er ent itl
edt ot h er etur nofh isc ont r
i but ion.
circums tanc esr enderi tj us tandr eas onabl e; and Ar t
. 185 8. Al imi tedpar tneri sl iabl et ot hepar tner s hip:
(3)Hav edi ss ol ut i
onandwi ndi ngupbydec reeofc our t . (1)Fort hedi ffer enc ebet weenh i
sc ont ribut ionasac tual lymadeand
Al i
mi tedpar t ners hal lh av et her ig h ttor ec ei veas h ar eoft h epr of its thats tat edi nt h ec er tificat eash av ingbeenmade; and
orot herc ompens ationbywayofi nc ome, andt ot h er et ur nofh is (2)Foranyunpai dc ont ribut ionwh ic hh eag reedi nt hec er tificat et o
cont ribut i
onaspr ov idedi nAr t icles1 856and1 85 7. makei nt hef ut ur eatt het imeandont hec ondi tionss tat edi nt he
Art. 185 2. Wi thoutpr ej udic et ot h epr ov i
s i
onsofAr tic le1 848, aper s on cer tificat e.
whoh asc ont ribut edt ot hec api t alofabus i
nes sc onduc tedbyaper s on Al imi tedpar tnerh oldsast r us teef ort hepar tner ship:
orpar t ner shiper roneous lybel i ev ingt hath eh asbec omeal imi ted (1)Spec ificpr oper tys tat edi nt hec er tific at easc ont ribut edbyh im, but
par tneri nal imi tedpar tner sh i
p, isnot ,byr eas onofh isex er c i
s eoft he wh i
c hwasnotc ont ribut edorwh i
c hh asbeenwr ong ful lyr et ur ned, and
rightsofal imi t edpar tner , ag ener alpar tnerwi tht h eper sonori nt he (2)Moneyorot h erpr oper tywr ong f ullypai dorc onv ey edt oh imon
par tner shipc ar ry i
ngont h ebus ines s ,orboundbyt h eobl igat ionsof ac countofh isc ont ribut ion.
suchper sonorpar tner ship, pr ov idedt hatonas cer tai ni ngt h emi s take Th el i
abi litiesofal imi tedpar tnerass etf or thi nt hisar ticlec anbe
hepr ompt lyr enounc esh isi nt er es ti nt hepr of itsoft h ebus ines s, or wai vedorc ompr omi s edonl ybyt hec ons entofal lmember s;buta
otherc ompens at ionbywayofi nc ome. wai verorc ompr omi ses hal lnotaf fec tt h er i
g htofac redi t orofa
Art. 185 3. Aper s onmaybeag ener alpar tnerandal imi tedpar tneri n par tner s hipwh oex tendedc r edi torwh os ec laimar os eaf t ert h ef iling
thes amepar t ner shipatt h es amet ime, pr ov idedt h att h i
sf ac ts h al lbe andbef or eac anc el lat ionoramendmentoft hec ert ificat e, toenf or ce
statedi nt hec er t i
f i
c at epr ov idedf ori nAr ticle1 844. suc hl iabi lities .
Aper s onwh oi sag ener al, andal soatt h es amet imeal i
mi t edpar tner , Wh enac ont ribut orh asr igh tful lyr ec ei vedt her et urni nwh oleori npar t
shal lh av eal lt her igh tsandpower sandbes ubj ec tt oal lt he oft hec api talofh isc ont ribut ion, h ei snev er thel es sl iabl et ot h e
rest rictionsofag ener alpar tner ; ex ceptt hat ,inr es pec tt oh i
s par tner s hipf oranys um, noti nex c es sofs uc hr et ur nwi thi nt er est ,
cont ribut i
on, hes hallh av et h er igh tsag ai ns tt heot hermember swh ic h nec es sar yt odi sc har g ei tsl iabi litiest oal lc redi torswh oex t ended
hewoul dh av eh adi fh ewer enotal soag ener alpar tner . credi torwh os ec lai msar os ebef or es uc hr etur n.
Art. 185 4. Al imi tedpar tneral somayl oanmoneyt oandt rans ac tot h er Ar t
. 185 9. Al i mi tedpar tner 'si nt er es ti sas s i
g nabl e.
bus ines swi tht hepar t ner sh ip, and, unl es sh ei sal s oag ener alpar tner , As ubs titut edl imi tedpar tneri saper sonadmi ttedt oal lt her ight sofa
recei v eonac countofr es ul tingc lai msag ains tt hepar tner s hip, wi th limitedpar tnerwh oh asdi edorh asas sig nedh isint er es ti na
gener alc redi tor s ,apr or at as h ar eoft heas s et s.Nol imi tedpar tner par tner s hip.
shal linr es pec tt oanys uc hc lai m: Anas s ignee, wh odoesnotbec omeas ubs titut edl imi tedpar tner ,h as
(1)Rec eiv eorh ol dasc ollat er als ec ur i
tyandpar tner sh ippr oper t y, or nor ig htt or equi reanyi nf or mat i
onorac c ountoft hepar tner sh ip
(2)Rec ei vef romag ener alpar tnerort h epar tner sh ipanypay ment , trans ac tionsort oi ns pec tt hepar t ner s hipbooks ;h ei sonl yent itledt o
conv ey anc e, orr el eas ef roml iabi lityi fatt het imet h eas set soft he rec eivet h es h ar eoft hepr of itsorot h erc ompens at ionbywayof
par tner shipar enots uf fi
c ientt odi sc har gepar tner s hipl iabi litiest o income, ort h er et ur nofh isc ont ribut ion, t owh ichh isas sig norwoul d
per sonsnotc lai mi ngasg ener alorl i mitedpar tner s. ot h
er wi sebeent itled.
Ther ec ei vingofc ollat er als ec ur it y, orpay ment ,conv ey anc e, orr el eas e Anas s ignees hal lh av et her igh ttobec omeas ubs ti
t ut edl imi ted
invi olat ionoft hef or eg oingpr ov isionsi saf raudont hec redi torsof par tneri fal lth emember sc ons entt h er etoori ft heas sig nor ,bei ng
thepar tner sh ip. ther eunt oempower edbyt h ec er tificat e, g ivest heas signeet h atr igh t.
Art. 185 5 .Wh er et h erear es ev er all imi tedpar tner st hemember smay Anas s igneebec omesas ubs titutedl imi tedpar tnerwh ent he
agreet hatoneormor eoft h el imi t edpar tner ss hal lh av eapr ior ity cer tificat ei sappr opr i
at el yamendedi nac cor danc ewi thAr t icle1 86 5 .
overot herl imi tedpar tner sast ot her etur noft hei rc ont ribut ions , ast o Th es ubs titut edl imi tedpar tnerh asal lt her i
g htsandpower s ,andi s
theirc ompens at ionbywayofi nc ome, orast oanyot hermat ter .Ifs uc h subj ec tt oal lt h er es tr i
c tionsandl iabi li
tiesofh isas sig nor , ex cept
anag r eementi smadei ts hal lbes tat edi nt h ec er tific at e, andi nt h e thos el iabi l
it i
esofwh ichh ewasi g nor antatt h et imeh ebec amea
abs enc eofs uc has tat emental lt hel imi t
edpar tner ss h alls tandupon limitedpar tnerandwh i
c hc oul dnotbeas cer tai nedf romt hec ertific ate.
equalf oot ing . Th es ubs titut ionoft heas s igneeasal imi tedpar tnerdoesnotr eleas e
Art. 185 6 .Al imi t edpar tnermayr ec ei vef romt hepar t ner s hipt h es h ar e theas s i
g norf roml iabi lit
yt ot hepar tner sh ipunderAr tic les1 847and
oft hepr ofitsort hec ompens at ionbywayofi nc omes tipul at edf ori n 1848.
thec er tificat e; pr ov idedt hataf ters uc hpay menti smade, wh et herf r om Ar t
. 186 0. Th er et irement ,deat h, ins olv enc y,ins ani tyorc ivili nt erdi ction
proper t yoft hepar tner shiport hatofag ener alpar tner ,th e ofag ener alpar tnerdi ss olv est hepar tner s hip, unl es st h ebus ines si s
par tner shipas set sar ei nex c es sofal lliabi litiesoft h epar tner s h ip cont inuedbyt h er emai ningg ener alpar tner s:
exc eptl iabi litiest ol i mi tedpar tner sonac countoft h ei rc ont ribut ions (1)Underar ig hts ot odos tat edi nt hec er tificat e, or
andt og ener alpar tner s. (2)Wi tht h ec ons entofal lmember s.
Art. 185 7. Al imi tedpar tners hal lnotr ec ei vef romag ener alpar t neror Ar t
. 186 1. Ont h edeat hofal imi tedpar tnerh isex ec utoror
outofpar tner sh ippr oper tyanypar tofh isc ont r i
but ionsunt il: admi nis trat ors h allh aveal lt her i gh tsofal imi tedpar tnerf ort he
(1)Al lliabi litiesoft hepar t ner s hi p, ex ceptl iabi litiest og ener al pur pos eofs et tingh ises tat e, ands uc hpowerast hedec eas edh adt o
par tner sandt ol imi tedpar tner sonac countoft hei rc ont ribut ions , cons titut eh isas signeeas ubs titut edl imi tedpar tner .
havebeenpai dort her er emai nspr oper tyoft h epar tner ships uf fic ient Th ees tat eofadec eas edl imi tedpar t ners h allbel iabl ef oral lhis
topayt h em; liabilitiesasal imi tedpar t ner .
(2)Th ec ons entofal lmember si sh ad, unl es st her et ur noft he Ar t
. 186 2. Ondueappl i
c at i
ont oac our tofc ompet entj uris dic tionby
cont ribut i
onmayber ig htful lydemandedundert hepr ov isionsoft h e anyc redi t orofal imi t edpar t ner ,t hec our tmayc har get hei nter es tof
secondpar ag raph ; and thei ndebt edl imi tedpar tnerwi thpay mentoft h euns at isfiedamountof
(3)Th ec er ti
f icat ei sc anc el ledors oamendedast os etf or tht h e suc hc lai m, andmayappoi ntar ec ei ver ,andmakeal lot heror der s,
withdr awalorr educ tion. direc tionsandi nqui rieswh ic ht h ec ir cums tanc esoft h ec as emay
Subj ec tt ot h epr ov i
s ionsoft hef ir stpar ag raph , al imi t edpar tnermay requi re.
Thei nt er es tmayber edeemedwi tht hes epar at epr oper tyofany effecti
vityoft hisCode, maybec omeal i
mi t
edpar tnershi
pundert hi
s
gener alpar tner , butmaynotber edeemedwi thpar tner s hippr oper ty. Chapterbyc ompl yingwitht hepr ovi
sionsofArticl
e1 844,provi
dedth e
Ther emedi esc onf er r edbyt h ef irs tpar ag raphs h al lnotbedeemed certi
ficates etsf orth:
exc lus iv eofot h er swh ic hmayex ist. (1)Theamountoft heoriginalcont ri
buti
onofeac hli
mi t
edpar t
ner,and
Not h ingi nt h isCh apt ers h al lbeh el dt odepr iveal imi tedpar tnerofh i
s thetimewh ent hec ontri
but i
onwasmade; and
stat ut or yex empt ion. (2)Thatt hepr oper tyofthepar tner s
hipexceedst heamounts uffi
cient
Art .186 3. I ns etti ngac c ount saf t erdi ss olut iont h el iabi liti
esoft h e todischarg eitsliabilit
iest oper sonsnotclaimingasg eneralor
par tner sh ips hal lbeent itledt opay menti nt h ef ollowi ngor der : li
mi t
edpar tnersbyanamountg reaterthanthes umoft he
(1)Th os et oc redi tor s ,int heor derofpr ior ityaspr ov idedbyl aw, contri
but i
onsofi tslimitedpar tners.
exc eptt hos et ol imi tedpar tner sonac c ountoft h ei rc ont ribut ions ,and Al i
mitedpar tnershipformedundert helawpriort otheeffect
ivi
tyof
tog ener alpar tner s ; thi
sCode, untilorunl essitbec omesal i
mi t
edpar tnershi
pundert hi
s
(2)Th os et ol imi tedpar tner si nr es pec tt ot h ei rs h ar eoft h epr of its Chapter ,
s hallcont i
nuet obeg ov ernedbyt heprovisi
onsoft heoldlaw. 
andot h erc ompens at ionbywayofi nc omeont h ei rc ont r ibut i
ons ;  
(3)Th os et ol imi tedpar tner si nr es pec tt ot h ec api taloft h eir Titl
eX. -AGENCY
cont ribut ions ;  
(4)Th os et og ener alpar tner sot hert h anf orc api talandpr of i
t s; CHAPTER1
(5)Th os et og ener alpar t ner si nr es pec tt opr of its; NATURE, FORM ANDKI NDSOFAGENCY
(6)Th os et og ener alpar t ner si nr es pec tt oc api tal .
Subj ec tt oanys tat ementi nt h ec ert ificat eort os ubs equentag reement , Art .186 8. Byt h ec ont rac tofag enc yaper sonbi ndsh ims elft or ender
li
mi tedpar tner ss har ei nt h epar tner s hipas set si nr es pec ttot h eir somes er vi
c eort odos omet h ingi nr epr es ent at ionoronbeh alfof
claimsf orc api tal , andi nr es pec tt ot hei rc lai msf orpr of itsorf or anot her ,witht hec ons entoraut hor ityoft hel at ter .(1709 a)
compens at i
onbywayofi nc omeont hei rc ont ribut ionr es pec tivel y,i
n Art .186 9. Ag enc ymaybeex pr es s,ori mpl iedf romt h eac tsoft h e
propor tiont ot her es pec tiveamount sofs uc hc l aims . princ ipal ,f
romh iss ilenc eorl ac kofac tion, orh isf ailur etor epudi ate
Art .186 4. Th ec er tific at es hal lbec anc elledwh ent h epar tner shipi s theag enc y,knowi ngt hatanot h erper s oni sac tingonh isbeh alfwi thout
diss ol vedoral ll imi t edpar tner sc eas et obes uc h . aut hor ity .
Ac er t ificat es h al lbeamendedwh en: Ag enc ymaybeor al ,unl es sth el awr equi resas pec ificf orm. (1710a)
(1)Th er ei sac hang ei nt h enameoft h epar tner sh ipori nt heamountor Art .1870. Ac cept anc ebyt h eag entmayal sobeex pres s, ori mpl ied
char ac teroft h ec ont ribut ionofanyl imi tedpar t ner ; fromh isac t swh ichc ar ryoutt h eag enc y, orf romh iss ilenc eori nac t
ion
(2)Aper s oni ss ubs tit ut edasal imi tedpar tner ; ac cor dingt ot h ec ir cums tanc es .(n)
(3)Anaddi tionall imi tedpar tneri sadmi tted; Art .1871 .Bet weenper sonswh oar epr es ent , theac cept anc eoft he
(4)Aper s oni sadmi ttedasag ener alpar tner ; ag enc ymayal s obei mpl iedi ft h epr inc ipaldel iver sh i
spowerof
(5)Ag ener alpar t nerr et ir es , dies , bec omesi ns ol ventori ns ane, ori s attor neyt ot h eag entandt hel at terr ec ei vesi twi thoutanyobj ec ti
on.
sent enc edt oc iv ili nt er di ctionandt hebus ines si sc ont inuedunder (n)
Art i
c le1 86 0; Art .1872. Bet weenper s onswh oar eabs ent , theac cept anc eoft he
(6)Th er ei sac hang ei nt h ec har ac teroft h ebus ines soft he ag enc yc annotbei mpl iedf romt hes ilenc eoft h eag ent, exc ept :
par tner sh ip; (1)Wh ent h epr inc ipalt rans mi tsh ispowerofat tor neyt ot heag ent, who
(7)Th er ei saf al seorer roneouss tat ementi nt h ec er tificat e; rec eiv esi twi th outanyobj ec tion;
(8)Th er ei sac h ang ei nt h et imeass tat edi nt h ec er tific atef ort he (2)Wh ent hepr inc ipalent rus tst oh imbyl et terort eleg ramapowerof
diss ol ut i
onoft h epar tner sh iporf ort her et ur nofac ont r i
but ion; attor neywi thr es pec tt ot hebus ines si nwh ichh ei sh abi tual lyeng ag ed
(9)At imei sf ix edf ort hedi s s olut ionoft hepar t ner s hip, ort her etur n asanag ent, andh edi dnotr epl yt ot h el et terort eleg ram. (n)
ofac ont r ibut ion, not imeh av ingbeens pec ifiedi nt h ec er tificat e,or Art .1873. Ifaper s ons pec i
al lyi nfor msanot h erors tatesbypubl ic
(10)Th emember sdes ir et omakeac h ang ei nanyot hers tat ementi n adv er tis ementt hath eh asg ivenapowerofat tor neyt oat hirdper son,
thec er tific at ei nor dert hati ts h al lac cur at elyr epr es entt he thel at tert h er ebybec omesadul yaut hor izedag ent , i
nt h ef ormerc as e
agr eementamongt hem. withr es pec tt ot h eper s onwh or ec ei vedt h es pec i
ali nfor mat ion, andi n
Art .186 5 .Th ewr it ingt oamendac er tificat es h al l: thel at terc as ewi thr eg ardt oanyper s on.
(1)Conf or mt ot h er equi r ement sofAr t icle1 844asf arasnec es sar yto Thepowers h al lc ont inuet obei nf ullf or ceunt i lt henot icei sr es ci
nded
setf or thc l
ear lyt hec hang ei nt h ec er tificat ewh ic hi tisdes iredt o int hes amemanneri nwh ichi twasg iven. (n)
make; and Art .1874. Wh enas al eofapi ec eofl andoranyi nt er estt her eini s
(2)Bes ig nedands wor nt obyal lmember s, andanamendment throug hanag ent , theaut horityoft h el at ters hal lbei nwr iting;
subs t itut ingal imi tedpar tneroraddi ngal imi t edorg ener alpar tner oth erwi s e,th es ales hal lbev oi d. (n)
shal lbes i gnedal s obyt h emembert obes ubs tit ut edoradded, and Art .1875 .Ag enc yispr es umedt obef orac ompens at ion, unl esst herei s
wh enal imi tedpar t neri st obes ubs titut ed, t heamendments hal lal so prooft ot hec ont rar y.( n)
bes ignedbyt h eas s i
g ni ngl imi tedpar tner . Art .1876 .Anag enc yisei therg ener alors pec ial .
Thewr itingt oc anc elac er t ificat es h allbes i
g nedbyal lmember s. Thef or merc ompr is esal lt hebus ines soft hepr inc ipal. Thel atter,one
Aper sondes iringt h ec anc el lat i
onoramendmentofac ertificat e, i
f ormor es pec ifict r ans ac tions . (171 2)
anyper sondes ig nat edi nt hef irs tands ec ondpar ag raph sasaper son Art .1877. Anag enc yc ouc h edi ng ener alt er msc ompr isesonl yac tsof
wh omus tex ec ut et h ewr itingr ef us est odos o, maypet itiont hec ourtto admi ni stration, ev eni ft hepr inc i
pals houl ds tat et h ath ewi thholdsno
orderac anc ellat ionoramendmentt h er eof . powerort hatt h eag entmayex ec ut es uc hac tsash emayc ons ider
Ifth ec our tf indst hatt h epet it i
onerh asar i
g htt oh av et h ewr iting appr opr iate, orev ent houg ht heag enc ys houl daut hor i
zeag ener aland
exec ut edbyaper s onwh or ef us est odos o, its h al lor dert h eOf ficeof unl i
mi tedmanag ement . (n)
theSec ur itiesandEx ch ang eCommi s sionwh er et h ec ert ifi
c atei s Art .1878. Spec ialpower sofat tor neyar enec es sar yi nth ef ollowi ng
rec or ded, t or ec or dt hec anc el lat ionoramendmentoft h ec er tificate; cas es :
andwh ent hec er tific at ei st obeamended, thec our ts h allal soc aus e (1)Tomakes uc hpay ment sasar enotus ual lyc ons ider edasac tsof
tobef iledf orr ec or di ns aidof fic eac er tifiedc opyofi tsdec ree admi ni stration;
set tingf or tht heamendment . (2)Toef fectnov at ionswh ichputanendt oobl ig at ionsal readyi n
Ac er t ificat ei samendedorc anc el ledwh ent her ei sf iledf orr ec or din ex i
s tenc eatt h et imet heag enc ywasc ons t i
tut ed;
theOf ficeoft heSec ur itiesandEx ch ang eCommi ssion, wh er et he (3)Toc ompr omi se, tos ubmi tques tionst oar bi trat ion, t orenounc et h
e
cer tificat ei sr ec or ded: rightt oappealf romaj udg ment , towai veobj ec tionst ot hev enueofan
(1)Awr itingi nac cor danc ewi tht h epr ov is ionsoft h ef irs tors ec ond ac tionort oabandonapr es cript ional r eadyac qui red;
par ag r aph ,or (4)Towai veanyobl igat iong rat uit ous ly;
(2)Ac er ti fiedc opyoft h eor deroft hec our tinac c or danc ewi t ht he (5)Toent eri nt oanyc ont rac tbywh icht h eowner s hipofani mmov abl e
prov is ionsoft h ef our thpar ag raph ; ist rans mi ttedorac qui redei th erg rat uitous lyorf orav aluabl e
(3)Af tert h ec er tif icat ei sdul yamendedi nac c or danc ewi t hth isar ticl
e, cons i
der ation;
theamendedc er tifieds h allt her eaf terbef oral lpur pos est he (6)Tomakeg ifts, ex ceptc ustomar yonesf orc h ar ityort hos emadet o
cer tificat epr ov idedf ori nt h isCh apt er . empl oy eesi nt h ebus i
nes smanag edbyt h eag ent ;
Art .186 6 .Ac ont ribut or , unl es sh ei sag ener alpar tner , isnotapr oper (7)Tol oanorbor rowmoney ,unl es st hel at terac tbeur gentand
par tyt opr oc eedi ng sbyorag ai ns tapar tner sh ip, ex ceptwh eret he indis pens abl ef ort h epr eser vat ionoft h et hing swh ic har eunder
objec ti st oenf or c eal imi tedpar tner '
sr igh tag ai ns torl iabi li
tyt ot h e admi ni stration;
par tner sh ip. (8)Tol eas eanyr ealpr oper tyt oanot herper s onf ormor et h anone
Art .186 7. Al imi t edpar tner s hipf or medundert h el awpr iort ot he year ;
(9)Tobi ndt h epr inc ipalt or enders omes er vicewi thoutc ompens ation; af tert heex t i
ng ui sh mentoft h eag enc y.(1 724a)
(10)Tobi ndt hepr inc ipali nac ont rac tofpar tner ship; Ar t.1 897. Th eag entwh oac tsass uc hi snotper s onal lyli abl et ot h e
(11)Toobl igat et hepr inc i
palasag uar ant orors uret y; par tywi thwh omh ec ont rac ts, unl es sh eex pr es slybi ndsh ims el for
(12)Toc reat eorc onv eyr ealr ight sov erimmov abl epr oper t
y; ex ceedst hel imi t sofh isaut h or itywi thoutg ivings uc hpar tys uf ficient
(13)Toac ceptorr epudi at eani nh eritanc e; not ic eofh ispower s. (1725 )
(14)Tor atifyorr ec og nizeobl igat ionsc ontr actedbef or et heag enc y; Ar t.1 898. Ift heag entc ont rac tsi nt h enameoft hepr i
nc ipal ,ex ceedi ng
(15)Anyot h erac tofs trictdomi nion. (n) thes copeofh isaut hor it y,andt hepr i
nc ipaldoesnotr at i fyth ec ont ract,
Art.1879.As pecialpowert os el lex c l
udest h epowert omor tgage; and its h allbev oi di ft hepar tywi t hwh omt heag entc ont rac tedi sawar eof
as pecialpowert omor tgag edoesnoti ncludet h epowert os ell
. (n) thel imi tsoft hepower sg rant edbyt hepr incipal .Int h isc as e, h owev er,
Art.1880.As pecialpowert oc ompr omi sedoesnotaut horize theag enti sl iabl ei fh eunder tookt os ec ur et h epr inc i
pal 'sr atific at i
on.
submi ssi
ont oar bit ration. (1713a) (n)
Art.1881.Th eag entmus tac twi thint h es c
opeofh isaut horit
y.Hemay Ar t.1 899. Ifadul yaut hor izedag entac tsi nac c ordanc ewi tht h eor der s
dos uchac tsasmaybec onduc ivet ot heac c ompl ishmentoft he oft hepr incipal ,t hel at terc annots etupt h ei gnor anc eoft heag entas
purpos eoft h eag enc y.(1714a) toc ircums tanc eswh er eofh eh ims el fwas , oroug htt oh av ebeen, awar e.
Art.1882.Th el i
mi tsoft heag ent 'saut horitys hallnotbec onsidered (n)
exceededs h ouldi th av ebeenper for medi namannermor e Ar t.1 900. Sof arast h irdper sonsar ec onc er ned, anac ti sdeemedt o
adv antageoust ot hepr inc i
palt h ant hatspec if
iedbyh im. (1715) hav ebeenper f
or medwi th i
nt hes copeoft heag ent 'saut h ority ,ifs uc h
Art.1883.Ifanag entac tsi nh isownname, th epr incipalh asnor ig h
tof ac ti swi thi
nt h et er msoft hepowerofat t orney ,aswr itten, ev eni ft he
actionag ains ttheper sonswi thwh omt heag enth asc ont racted;nei ther ag enth asi nf ac tex ceededt h el imi tsofh isaut h orityac c or dingt oan
haves uchper sonsag ains tthepr incipal . under standi ngbet weent h epr inc i
palandt heag ent .(n)
Ins uchcas et heag enti stheonedi rec t
lyboundi nf avoroft heper son Ar t.1 901 .At hirdper sonc annots etupt hef ac tt hatt heag enth as
withwh omh eh asc ont rac t
ed, asi ft h etrans ac tionwer eh i
sown, except ex ceededh ispower s ,ift h epr inc i
palh asr at i
f ied, orh ass ignifiedh is
whent hec ont racti nv olvest h i
ng sbel ong i
ngt oth epr inc ipal. wi lling nes st or at ifyt h eag ent '
sac ts .(n)
Thepr ovisionsoft h isar ticles hal lbeunder s t
oodt obewi thout Ar t.1 902. At h ir
dper sonwi thwh omt heag entwi s hest oc ont rac ton
prejudicet ot heac tionsbet weent hepr i
nc ipalandag ent .(
1717)  beh alfoft hepr inc ipalmayr equi ret hepr es ent at ionoft h epowerof
  at tor ney ,ort h ei ns truc tionsasr eg ar dst heag enc y .Pr ivat eors ec r et
CHAPTER2 or der sandi ns truc tionsoft h epr inc ipaldonotpr ejudi c et hirdper sons
OBLI GATI ONSOFTHEAGENT wh oh av er eliedupont hepowerofat torneyori ns truc t i
onss h ownt hem.
(n)
Art. 1884. Theag enti sboundbyh isac cept anc et oc ar r youtt h eag enc y
, Ar t.1 903. Th ec ommi ss ionag ents h allber es pons i
bl ef ort h eg oods
andi sliabl ef ort h edamag eswh ich ,t hroug hh isnon- per formanc e, the rec ei vedbyh imi nt h et er msandc ondi tionsandasdes c ribedi nt h e
princ ipalmays uffer . cons ignment ,unl es suponr ec ei vingt hemh es h oul dmakeawr i
t t
en
Hemus talsof inisht h ebus ines sal r eadybeg unont h edeat hoft he stat ementoft hedamag eanddet er ior at ions uf fer edbyt hes ame. (n)
princ ipal ,shoul ddel ayent ai lanydang er.(1 71 8) Ar t.1 904. Th ec ommi ss ionag entwh oh andl esg oodsoft h es ameki nd
Art. 1885 .Inc as eaper s ondec li
nesanag enc y, heisboundt oobs erv e andmar k,wh ichbel ongt odi f fer entowner s,s hal ldi sting uisht hemby
thedi l i
g enceofag oodf at herofaf ami lyi nt h ec us todyand count er mar ks ,anddes ig nat et hemer chandi s er es pec tiv elybel ong ing
pres er vationoft heg oodsf or wardedt oh imbyt heownerunt ilt he toeac hpr i
nc ipal .( n)
latters houldappoi ntanag entort akec har g eoft heg oods . (n) Ar t.1 905 .Thec ommi ss i
onag entc annot ,wi thoutt heex pr es sori mpl ied
Art. 1886 .Shoul dt her ebeas tipulat iont hatt h eag ents hal ladv anc et he cons entoft hepr inc ipal ,s ellonc redi t .Sh oul dh edos o, th epr i
nc ipal
nec es sar yfunds ,h es hal lbeboundt odos oex ceptwh ent h epr inc ipal maydemandf romh impay menti nc as h,butt hec ommi ss ionag ents hal
l
isins olv ent.( n) beent itledt oanyi nt er es torbenef it,wh ic hmayr es ul tf roms uc hs ale.
Art. 1887. Int h eex ec uti onoft h eag enc y,theag ents h al lac ti n (n)
acc ordanc ewi tht hei ns truc tionsoft hepr inc ipal . Ar t.1 906 .Shoul dt hec ommi ss ionag ent ,wi t haut hor ityoft hepr inc ipal ,
Indef aul tther eof , hes h al ldoal lt hatag oodf at herofaf ami lywoul d sel lonc redi t
, hes h alls oi nfor mt hepr inc ipal , wi t
has t at ementoft he
do, asr equiredbyt henat ur eoft h ebus ines s .(171 9) namesoft hebuy er s .Sh oul dh ef ailt odos o, thes al es hal lbedeemed
Art. 1888. Anag ents hal lnotc arryoutanag enc yifit sex ec utionwoul d toh av ebeenmadef orc as hi ns of arast h epr inc ipali sc onc er ned. (n)
mani fes tl
yr es ulti nl os sordamag et ot hepr inc i
pal .( n) Ar t.1 907. Sh ouldt hec ommi ss ionag entr ec ei veonas al e, inaddi tiont o
Art. 1889. Theag ents h al lbel iabl ef ordamag esi f,th er ebei nga theor dinar yc ommi s sion, anot h erc al ledag uar ant eec ommi s sion, he
conf lictbet weenh isi nt er es tsandt h os eoft h epr inc ipal , hes houl d sh allbeart h er iskofc ol lecti onands h al lpayt hepr inc ipalt h e
pref erh i
sown. (n) pr oc eedsoft h es aleont h es amet er msag reeduponwi t ht he
Art. 1890. Ifth eag enth asbeenempower edt obor r
owmoney ,h emay pur c has er .(n)
hims el fbet h el enderatt hec urrentr ateofi nter est .Ifh eh asbeen Ar t.1 908. Th ec ommi ss ionag entwh odoesnotc ol l
ec tth ec redi tsofh is
auth or i
z edt ol endmoneyati nteres t,h ec annotbor rowi twi thoutt he pr inc ipalatt h et imewh ent h eybec omedueanddemandabl es h allbe
cons entoft h epr inc ipal . (n) liabl ef ordamag es , unl es sh epr ov est hath eex erc isedduedi ligenc e
Art. 1891 .Ever yag enti sboundt or enderanac countofh ist rans ac tions fort hatpur pos e. (n)
andt odel i
vert ot h epr inc ipalwh at ev erh emayh av er ec ei vedbyv irtue Ar t.1 909. Th eag enti sr es pons ibl enotonl yf orf raud, butal sof or
oft heag enc y, event h oug hi tmaynotbeowi ngt ot hepr inc i
pal . neg ligenc e, wh ichs hal lbej udg edwi t hmor eorl es sr igorbyt h ec our ts,
Ever ys tipulat ionex empt ingt heag entf r
omt h eobl ig at i
ont or enderan ac cor di ngt owh et hert heag enc ywasorwasnotf orac ompens ation.
acc ounts hallbev oi d. (1 720a) (1726 ) 
Art. 1892. Theag entmayappoi ntas ubs titut ei ft hepr inc ipalh asnot  
proh ibitedh imf romdoi ngs o; buth es h allber espons ibl ef ort h eac tsof CHAPTER3
thes ubs tit
ut e: OBLI GATI ONSOFTHEPRI NCI PAL
(1)Wh enh ewasnotg ivent hepowert oappoi ntone;
(2)Wh enh ewasg ivens uc hpower , butwi th outdes ignat ingt h eper son, Art.1910.Thepr inc i
palmus tc ompl ywi thal ltheobl igationswh ichth e
andt heper sonappoi nt edwasnot or ious lyi nc ompet entori ns olvent . agentmayh av ec ontract edwi thint h
es c opeofh i
saut h
or it
y.
Allac tsoft h es ubs titut eappoi ntedag ains tt hepr oh ibitionoft he Asf oranyobl igat i
onwh er eint heag enth asex ceededh ispower ,the
princ ipals hal lbev oid. ( 1721 ) principalisnotboundex c eptwh enh er atifi
esi tex press l
yort acit
ly .
Art. 1893. Int h ec as esment ionedi nNos .1and2oft hepr ec edi ng (1727)
article, thepr inc i
palmayf ur thermor ebr inganac tionag ains tt he Art.1911.Evenwh ent heag enth asex ceededh isaut hority,theprincipal
subs titut ewi thr es pec tt ot heobl igat ionswh icht hel at terh as issolidaril
yliabl ewi thth eag enti fthef ormeral lowedt helattert oac t
cont rac tedundert h es ubs titution. (1 722a) ast houghh ehadf ullpower s.( n)
Art. 1894. Ther es pons ibi lityoft woormor eag ent s,ev ent houg ht hey Art.1912.Thepr inc i
palmus tadv ancet ot heag ent, shouldt helatters o
havebeenappoi nt eds i mul taneous ly, isnots olidar y, ifs olidar ityh as reques t,
thes umsnec ess aryf ort heex ec utionoft heag enc y.
notbeenex pr es slys tipul at ed. (1
723) Shoul dtheag enth av eadv anc edt hem, th epr i
ncipalmus treimbur se
Art. 1895 .Ifs olidar ityh asbeenag reedupon, eac hoft h eag ent si s himt herefor,eveni ft hebus ines sorunder takingwasnots uc c
es sful,
respons i
blef ort henon- ful f
illmentofag enc y, andf ort hef aul tor providedt heag enti sf r
eef r
omal lf ault.
neg ligenc eofh isf ellowsag ent s,ex c epti nt hel at terc as ewh ent he Ther eimbursements halli ncludei nteres tont hesumsadv anced, f
r om
fellowag entsac tedbey ondt h esc opeoft hei raut hor ity. (n) thedayonwh i
cht headv anc ewasmade. (1728)
Art. 1896 .Theag entowesi nt er estont hes umsh eh asappl i
edt oh i
sown Art.1913.Thepr inc i
palmus tal soi ndemni f
yt heag entf orallthe
usef romt hedayonwh ichh edi ds o, andont h os ewh ichh es tillowes damag eswh i
cht heex ecut ionoft heag enc ymayh av ecaus edth elat t
er,
with outfaul torneg lig enc eonh ispar t.(1729) thepri
ncipalorofanyot h
erc ausewh i
chex ti
nguis
hest heag enc
y,is
Art .1914.Th eag entmayr etai ninpl edg et het hingswh ic har eth eobj ect vali
dands hallbefull
yeffecti
v ewit
hres pecttothi
rdper sonswhomay
oft heag enc yunt ilth epr inc ipalef f
ec tst her eimbur sementandpay s havecontract
edwi t
hh i
mi ngoodf ai
th.(1738)
thei ndemni tys etf or thi nt h et wopr ec edingar t
ic l
es .(1 730) Art.
1932.Ifth
eag entdies,h
ish ei
rsmus tnotif
ythepr i
ncipalthereof
,
Art .1915.Ift woormor eper sonsh aveappoi nt edanag entf orac ommon andinthemeant imeadopts uchmeas uresast hecir
cums tancesmay
trans actionorunder taki ng, theys hallbes olidar il
yl iabl et ot heag ent demandi ntheinter
estofthel att
er.(1
739 ) 
foral lthec ons equenc esoft heag enc y.(1731 )  
Art .1916.Wh ent woper s onsc ontr actwi t
hr egar dt ot h es amet hing ,one Tit
leXI.-LOAN
oft hemwi tht heag entandt heot herwi t
ht hepr inc i
pal ,andt het wo  
cont ractsar einc ompat ibl ewi theac hot h er,thatofpr iordat es hal lbe GENERALPROVI SIONS
pref erred, wi t
h outpr ej udi cet ot hepr ovisionsofAr ticle1 5 44.(n)
Art .1917.Int h
ec aser ef er redt oi nt hepr ecedi ngar ticle,ift heag ent Art.1933.Byt hec ontractofl oan, oneoft hepartiesdel i
verstoanot her,
hasac tedi ng oodf ai th ,thepr incipals hallbel iablei ndamag est ot he eithers ometh ingnotc ons umabl es ot hatthelattermayus ethes ame
thirdper s onwh os ec ont rac tmus tber ejec ted. Iftheag entac tedi nbad forac er t
aint imeandr et urni t,
inwh ichcasethec ontractiscalleda
faith ,h
eal ones hallber espons ible. (n) commodat um; ormoneyorot h ercons umablething ,upont hecondi ti
on
Art .1918.Th epr i
nc ipali snotl iabl ef ort heex pens esi nc urredbyt he thatt h
es ameamountoft hes ameki ndandqual itys hallbepai d,in
ag entint h ef ollowi ngc as es : whichc aset hec ont r
ac tiss impl yc alledal oanor  mut uum.
(1)I ftheag entac tedi nc ont ravent ionoft hepr incipal '
si ns tr
uc tions , Commodat um ises s
ent iallyg ratuitous .
unl esst h
el atters h oul dwi sht oav ailh ims elfoft hebenef itsder ived Simpl eloanmaybeg r
at uitousorwi thas ti
pulationt opayi nteres t
.
fromt hec ont rac t; In 
commodat um t hebai lorr etainst h eowner s
h i
poft het hi
ngloaned,
(2)Wh ent heex pens eswer eduet oth ef aultoft heag ent ; whileins impl eloan, owner s h
ippas sest othebor rower .(1740a)
(3)Wh ent heag enti nc ur redt h emwi thknowl edg et h atanunf avor abl e Art.1934.Anac cept edpr omi set odel i
versomet hingbyway
res ultwoul dens ue, ift hepr inc i
palwasnotawar et h ereof ; of c
ommodat um  ors i
mpl el oani sbi ndinguponpar ties,but
(4)Wh eni twass ti
pul at edt h att heex pens eswoul dbebor nebyt h e the 
c ommodat um  ors impl el oani tsel fshal
lnotbeper fecteduntilthe
ag ent,ort h atth el at terwoul dbeal lowedonl yac er tai ns um. (n) deliveryoft heobj ectoft h ec ontrac t.(n)
 
   
CHAPTER4 CHAPTER1
MODESOFEXTI NGUI SHMENTOFAGENCY COMMODATUM
SECTI ON1-Nat ur eof  
Commodat um
Art .1 91 9.Ag enc yisex tingui sh ed:
(1)Byi tsr ev oc at i
on; Art.1935.Thebai leei n commodat um  acquirest heus edoft h
et hing
(2)Byt hewi thdr awaloft heag ent ; loanedbutnoti tsf ruits;ifanyc ompens ati
oni stobepai dbyh imwh o
(3)Byt hedeat h, civili nter dic tion, ins ani tyori ns olv enc yoft h e acquirestheus e, thec ont rac tc easest obea  commodat um.(1941 a)
princ i paloroft h eag ent ; Art.1936.Consumabl eg oodsmaybet hes ubjectof  
commodat um ifthe
(4)Byt hedi s sol utionoft h ef irmorc or por at ionwh i chent rus tedor purpos eoft h
ec ont rac tisnott h econs umpt ionoft heobj ect,aswh enit
acc ept edt heag enc y; ismer elyforexh i
bi tion. (
n)
(5)Byt heac compl ish mentoft heobj ec torpur pos eoft heag enc y
; Art.1937.Mov ableori mmov ablepr oper tymaybet heobj ect
(6)Byt heex pirat ionoft heper iodf orwh icht heag enc ywasc ons t
ituted. of c
ommodat um. (n)
(1732a) Art.1938.Thebai lori n commodat um neednotbet heowneroft het hi
ng
Art .1 920. Th epr inc ipalmayr evoket h eag enc yatwi ll,andc ompelt he loaned. (
n)
ag entt or etur nt hedoc umentev idenc ingt heag enc y.Suc hr ev oc ation Art.1939. 
Commodat um  ispur el yper sonali nc haracter.Consequent l
y:
maybeex pres sori mpl ied. (1733a) (1)Thedeat hofei thert hebai lorort hebaileeex ti
ng ui
shesth e
Art .1 921 .Ift heag enc yh asbeenent rus t edf ort hepur pos eof contract;
cont rac tingwi ths pec ifiedper sons , itsr ev oc at i
ons hal lnotpr ejudice (2)Th ebaileec annei therl endnorl eas etheobj ectoft hecontrac tt
oa
thel at teri fth eywer enotg i
v ennot ic et her eof . (1734) thi
rdper son.Howev er ,themember soft hebai l
ee'sh ouseholdmay
Art .1 922. Ift heag enth adg ener alpower s, rev oc at ionoft h eag enc y makeus eoft heth ingl oaned, unl esst hereisas ti
pul at
iontot he
doesnotpr ej udi cet hirdper sonswh oac tedi ng oodf aithandwi thout contrary,orunles st henat ur eoft het hingfor bi
dss uc huse.(n)
knowl edg eoft h er ev oc ation. Not ic eoft h er ev oc at ioni nanews paper Art.1940.As ti
pulat iont hatt h ebai leemaymakeus eoft hefruit
soft he
ofg ener alc ircul at ioni sas uf ficientwar ningt ot hirdper s ons .(n) thi
ngl oanedi sval i
d. (n)  
Art .1 923. Th eappoi nt mentofanewag entf ort hes amebus ines sor  
trans ac tionr ev okest hepr ev iousag enc yf romt hedayonwh i chnot ic
e SECTI ON2. -Obl i
g ationsoft heBai lee
ther eofwasg ivent ot hef or merag ent ,wi th outpr ej udic et ot he
prov i
s ionsoft h et wopr ec edi ngar t icles .(1 735 a) Art.1941 .
Thebai leei sobl igedt opayf ort heor dinar yex pens esforthe
Art .1 924. Th eag enc yi sr ev okedi ft hepr inc ipaldi rec tlymanag est he useandpr es ervat ionoft h ethingl oaned. (1743a)
bus ines sent rus tedt ot heag ent ,deal ingdi rec tlywi tht hi
rdper sons .
(n) Art.1942.Thebai leei sliabl efort hel os soft h eth i
ng ,eveni fi tshould
Art .1 925 .Wh ent woormor epr inc ipal sh av eg r ant edapowerof bet hroughaf ortuit ousev ent:
attor neyf orac ommont rans ac t i
on, anyoneoft h emmayr ev oket h e (1)Ifh edevot est h et hi
ngt oanypur pos edi fferentf romt hatf orwhich
samewi thoutt h ec ons entoft heot h er s. (n) ithasbeenl oaned;
Art .1 926 .Ag ener alpowerofat tor neyi sr ev okedbyas pec ialone (2)Ifh ekeepsi tl ong ert hant heper iods t
ipul ated, oraf tert he
grant edt oanot herag ent ,asr eg ar dst hes pec ialmat teri nv ol vedi nthe accompl i
shmentoft heus ef orwh ic ht he commodat um  hasbeen
latt er .(n) constituted;
Art .1 927. Anag enc yc annotber ev okedi fabi lat er alc ont rac tdepends (3)Ift hethingloanedh asbeendel i
v eredwi t
happr ai salofi tsvalue,
uponi t, orifi ti st hemeansoff ul fillinganobl ig at ional ready unlesst herei sas tipulat ionex empt iont hebai l
eef romr espons i
bili
ty
cont rac ted, ori fapar tneri sappoi nt edmanag erofapar tner shipin incas eofaf ortuit ousev ent ;
thec ont ractofpar tner shipandh isr emov alf romt hemanag ementi s (4)Ifh elendsorl eas est h ethingt oat hirdper son, wh oisnota
unj us tifiabl e.( n) memberofh ish ous ehold;
Art .1 928. Th eag entmaywi thdr awf r omt h eag enc ybyg ivi
ngduenot i
ce (5)If,beingabl et os aveei thert h
et hingbor r
owedorh isownt hi
ng ,he
tot h epr incipal .Ift hel atters houl ds uf feranydamag ebyr eas onoft he choset os avet hel at ter.(1 744aand1 745 )
with dr awal ,theag entmus ti ndemni f yh imt her ef or ,unl es st h eag ent Art.1943.Thebai leedoesnotans werf ort hedet erior ati
onoft het hi
ng
shoul dbas eh iswi th drawalupont h ei mpos sibi li
t yofc ont inui ngt he loaneddueonl ytot heus et hereofandwi th
outh isfaul t.(1746 )
per for manc eoft heag enc ywi thoutg rav edet r imentt oh i
ms elf.(1736 a) Art.1944.Thebai leec annotr etaint het hi
ngl oanedont heg roundt hat
Art .1 929. Th eag ent ,ev eni fh es houl dwi th drawf romt heag enc yfora thebai lorowesh ims omet h i
ng,ev ent h oughi tmaybebyr easonof
vali dr eas on, mus tc ont inuet oac tunt ilt hepr inc ipalh ash ad expens es.Howev er , t
hebai leeh asar i
g htofr etent ionf ordamag es
reas onabl eoppor tuni tyt ot aket henec es s ar ys tepst omeett he ment ionedinAr ticle1 95 1.( 1
747a)
situat ion. (1737a) Art.1945 .
Wh ent her earet woormor ebai leest owh omat hi
ngi sloaned
Art .1 930. Th eag enc ys h allr emai ni nf ul lf or ceandef fec tev enaf ter inthes amec ontr ac t,th
eyar eliables olidarily.(1748a)  
thedeat hoft hepr inc i
pal , ifith asbeenc ons ti tutedi nt hec ommon  
inter es toft h el at terandoft h eag ent ,ori nt h ei nt er es tofat hird SECTI ON3. -Obl igat i
onsoft heBai l
or
per s onwh oh asac c ept edt hes tipul at ioni nh isf av or .( n)
Art .1 931 .Any th ingdonebyt heag ent , wi th outknowl edg eoft hedeat hof Ar
t.1
946
.Th
ebai
lorc
annotdemandt
her
etur
noft
het
hingl
oanedt
il
l
aftert heex pirationoft heper iods tipul ated, oraf tert he Art.1965.
Adepos itisag ratuitouscontr
act,
exc eptwh enthereisan
acc ompl ishmentoft h eus ef orwh icht he  commodat um  hasbeen agreementt othec ont
rary,orunl essth
edepos itaryisengagedinthe
cons tituted. Howev er,ifi nt hemeant ime, hes houl dh aveur gentneedof businessofs t
ori
ngg oods. (
176 0a)
thet hi ng,h emaydemandi t sret ur nort empor ar yus e. Art.1966.
Onlymov ablet h
ing smaybet heobjectofadepos i
t.(1
761)
Inc as eoft empor ar yus ebyt hebai lor, thec ont rac tof  commodat um  is Art.1967.
Anex tr
ajudicialdepos iti
seithervol
unt aryornecessary.
sus pendedwh ileth et hingi si nt hepos ses sionoft h ebai l or.(1749 a) (1762) 
Art. 1947. Th ebai lormaydemandt het h ingatwi ll,andt hec ont ract ual  
relat ioni sc alledapr ec arium, int hef ollowi ngc as es : CHAPTER2
(1)I fnei thert hedur at ionoft h ec ont rac tnort heus et owh icht h et hing VOLUNTARYDEPOSI T
loaneds houl dbedev ot ed, hasbeens tipulat ed; or SECTI ON1 .
-Gener alProvisions
(2)I ft heus eoft h et hingi smer elyt oler at edbyt heowner .(175 0a)
Art. 1948. Th ebai lormaydemandt hei mmedi at eret ur noft het h i
ngi f Art.1968. Avol unt ar ydepos itist hatwh ereint hedeliver yismadebyt he
thebai leec ommi tsanyac tofi ngr atitudes pec ifiedi nAr t i
cle76 5.(n) wil
loft hedepos itor .Adepos itmayal sobemadebyt woormor e
Art. 1949. Th ebai lors hal lr efundt h eex traor di naryex pens esdur ingt he personseac hofwh ombel i
ev esh i
ms elfent it
ledt oth et hi
ngdepos ited
cont rac tfort hepr es erv ationoft het hingl oaned, pr ov i
dedt hebai lee withat h i
rdper son, wh os halldel iv
eri tinapr operc aset ot heonet o
bring st hes amet ot heknowl edg eoft hebai lorbef or einc urringt h em, whomi tbelong s. (176 3)
exc eptwh ent heyar es our gentt hatt her epl yt ot henot i
ficat ionc annot Art.1969 .Ac ontrac tofdepos itmaybeent eredi ntoor allyori nwr i
ting.
beawai tedwi thoutdang er . (n)
Ifth eex traor dinaryex pens esar i
s eont heoc c asionoft heac tualus e Art.1970. I
faper sonh av ingc apac it
yt oc ontractac cept sadepos it
oft het hi
ngbyt hebai l
ee, ev ent houg hh eac tedwi thoutf ault, theys h
all madebyonewh oi si nc apac i
tated, thefor mers hallbes ubjectt oallthe
bebor neequal lybybot ht hebai lorandt hebai lee, unl es st her eisa oblig
at ionsofadepos itar y,andmaybec ompel ledt or eturnt het h
ing
sti
pul at i
ont oth ec ontr ary. (175 1a) bytheg uardian, oradmi nistrator,ofth eper sonwh omadet h edepos it,
Art. 195 0.If,fort hepur pos eofmaki ngus eoft het h ing ,t
h ebai l
ee orbyt hel atterh ims elfi fhes houldac quirec apacity.(176 4)
incur sex pens esot h ert hant hos er ef er redt oi nAr t i
c les1 941and1 949, Art.1971 .
Ifth edepos i
th asbeenmadebyac apacitatedper sonwi th
hei snotent itledt or eimbur sement .(n) anotherwh oi snot , thedepos itors h
allonl yhav eanac tiont orec over
Art. 195 1.Thebai lorwh o, knowi ngt hef lawsoft h et hingl oaned, doesnot thethingdepos i
t edwh ilei tiss til
lint hepos s essi
onoft hedepos itary
,
adv iset h
ebai leeoft h es ame, shal lbel iabl et ot hel atterf ort h e ortoc ompelt h el att ert opayh imt heamountbywh ichh emayh ave
damag eswh ichh emays ufferbyr eas ont her eof .(175 2) enrichedorbenef itedh ims elfwitht heth i
ngori tspr ice.Howev er,ifa
Art. 195 2.Th ebai lorc annotex empth ims elff r omt hepay mentof thi
rdper sonwh oac quir edt het hingac tedi nbadf aith, t
h edepos i
tor
expens esordamag esbyabandoni ngt h et h i
ngt ot h ebai lee. (n)   maybr i
nganac tionag ai nsth imf oritsr ecover y
.(176 5
a)  
   
CHAPTER2 SECTI ON2. -Obl ig ationsoft heDepos itary
SIMPLELOANOR  MUTUUM
Art. 1972. Thedepos itar yi sobl ig edt okeept het hings afelyandt o
Ar t.1953. Aper sonwh or ec eivesal oanofmoneyoranyot herf ung i
ble retur ni t ,whenr equi red, tot h edepos i
tor , ortoh ish ei rsands ucc es sors,
thingac quirest heowner shipt her eof ,andi sboundt opayt ot he ort ot heper sonwh omayh av ebeendes ignat edi nt hec ontr ac t
.Hi s
credi toranequalamountoft h es ameki ndandqual it
y. (175 3a) respons ibil
ity,wi thr eg ar dt ot hes af ekeepi ngandt hel ossoft het h i
ng ,
Ar t.1954. Ac ont rac twh er ebyoneper sont rans ferst heowner shipofnon shal lbeg overnedbyt hepr ov is ionsofTi t leIoft h isBook.
-fung iblet hing stoanot herwi tht heobl igationont hepar toft hel at t
er Ifth edepos itisg rat ui tous , thisf ac tsh allbet akeni ntoac c ounti n
tog i
vet hing soft hes ameki nd, quant ity,andqual itys hallbe det er mi ningt hedeg r eeofc aret h att hedepos itarymus tobs erve.
cons ider edabar ter .(n) (176 6 a)
Ar t.1955 .Theobl igat i
onofaper sonwh obor rowsmoneys h allbe Art. 1973. Unles st h er ei sas tipul at iont ot hec ont rary, thedepos itar y
gov ernedbyt h epr ov i
s ionsofAr ticles1 249and1 25 0oft hisCode. cannotdepos itth et hingwi t hat h irdper s on. I
fdepos i
twi that hi
rd
Ifwh atwasl oanedi saf ung iblet hingot hert hanmoney , thedebt or per soni sal lowed, t hedepos itar yi sliabl ef ort hel os sifh edepos ited
owesanot hert hingoft h es ameki nd, quant ityandqual it y,ev eni fi t thet h ingwi thaper sonwh oi smani festlyc arel es sorunf it.The
sh ouldc h ang ei nv alue. I nc as ei tisi mpos siblet odel ivert hes ameki nd, depos i
t aryisr es pons i
bl ef ort heneg l
igenc eofh i
sempl oyees .
(n)
itsv alueatt het imeoft h eper fec tionoft hel oans h allbepai d. (1754a) Art. 1974. Thedepos itar ymayc h ang et hewayoft hedepos i
ti fundert he
Ar t.1956 .Noi nteres ts hal lbedueunl es si th asbeenex pr essly circums tancesh emayr eas onabl ypr esumet hatt h edepos itorwoul d
stipul atedi nwr iti
ng .( 175 5a) cons entt othec h ang ei fh eknewoft hef ac t
soft hes ituat i
on. Howev er,
Ar t.1957. Cont rac tsands t
ipul at i
ons ,underanyc loakordev ice befor et h edepos itar ymaymakes uc hc hang e,h es hallnot i
f yth e
wh atev er, i
nt endedt oc ircumv entt h elawsag ainstus urys hallbev oi
d. depos i
t orther eofandwai tf orh isdec i
s ion, unl es sdel aywoul dc aus e
Th ebor rowermayr ec ov eri nac c or danc ewi tht h
el awsonus ury .(n) dang er .(n)
Ar t.1958. Int hedet ermi nationoft hei nter es t,ifitispay abl einki nd,its Art. 1975 .Thedepos itar yh ol dingc ertificat es ,bonds , securitiesor
val ues hal lbeappr ais edatt hec ur rentpr iceoft hepr oduc tsorg oods instr ument swh i
c hear ni nt er es ts h allbeboundt oc ollectth el atter
att het imeandpl ac eofpay ment . (n) wheni tbec omesdue, andt ot akes uc hs tepsasmaybenec es saryi n
Ar t.1959 .Wit houtpr ejudi cet oth epr ov isionsofAr ticl
e221 2,int eres t ordert hatth es ec ur itiesmaypr es er vet h eirv alueandt her ights
dueandunpai dsh allnotear nint er es t.Howev er,thec ont r acting corr es pondi ngt ot h emac cor dingt ol aw.
par tiesmaybys tipul at ionc api tal iz eth ei nter estdueandunpai d, Theabov epr ov i
s ions h al lnotappl ytoc ont ract sf ort her entofs af ety
wh ichasaddedpr inc ipal ,sh allear nnewi nt er est.(n) depos i
tbox es .(
n)
Ar t.1960. Ifth ebor rowerpay si nt er estwh ent hereh asbeenno Art. 1976 .Unles st her ei sas tipul at iont ot hec ont r ary,th edepos itar y
stipul ationt h erefor ,thepr ov isionsoft hisCodec onc erni ng  
sol utio mayc ommi ng leg rai norot herar ticlesoft hes ameki ndandqual ity, in
indebi ti,ornat uralobl ig ations ,s hal lbeappl i
ed, ast hec as emaybe. (n) whic hc as ethev ar iousdepos itor ss hallownorh av eapr opor tionat e
Ar t.1961 .Us uriousc ont rac tss hal lbeg over nedbyt h eUs ur yLawand inter es ti nthemas s. (n) 
oth ers pec iall aws ,s of arast heyar enoti nc ons i
stentwi tht hisCode. Art. 1977. Thedepos itar yc annotmakeus eoft h et h i
ngdepos ited
(n)   with outt heex pr es sper mi s sionoft hedepos i
tor .
  Oth er wi se,hes hal lbel iabl ef ordamag es .
TitleXI I.-DEPOSI T Howev er ,whent hepr es er vat ionoft h et hingdepos itedr equi resit sus e,
  itmus tbeus edbutonl yf ort hatpur pos e. (1767a)
CHAPTER1 Art. 1978. Whent hedepos itar yh asper mi ss i
ont ous et het hing
DEPOSI TI NGENERALANDI TSDI FFERENTKI NDS depos i
t ed,th ec ont r ac tl os est h ec onc eptofadepos i
tandbec omesa
loanorc ommodat um, ex ceptwh er es afekeepi ngi ss tillthepr i
nc ipal
Art.1 962.Adepos i
tisconsti
tutedf romth emomentaper s onreceivesa pur pos eoft h ec ont rac t.
thingbel ongingtoanot her,
witht heobligati
onofs afelykeepi ngitand Theper mi ssions hal lnotbepr es umed, andi tsex istenc emus tbe
ofr eturningthes ame.Ifthes afekeepingoft h
et hingdeli
v eredisnot prov ed. (1768a)
thepr i
ncipalpur poseofthec ontract,t
hereisnodepos i
tbuts ome Art. 1979. Thedepos itar yi sl iabl ef ort hel ossoft h et hingth roug ha
otherc ont r
ac t
.(1758a) fortui tousev ent :
Art.1 963.Anag reementt oconstituteadepos itisbindi
ng, butthe (1)I fi ti ssos tipul at ed;
depos i
titselfisnotper f
ectedunt ilth
edel i
veryoft hething.(n) (2)I fh eus est het h ingwi th outt hedepos itor '
sper mi s si
on;
Art.1 964.Adepos i
tmaybec ons ti
tutedjudici
al l
yorex tr
ajudic i
all
y. (3)I fh edel ay sitsr et ur n;
(175 9) (4)I fh eal l
owsot h er st ous ei t ,ev ent houg hh eh ims elfmayh avebeen
aut hor izedt ous et h es ame. (n) Art.1993. Thedepos itors hal
lr eimbur sethedeposi
taryforanyloss
Art. 1980. Fi xed, s av ing s, andc urr entdepos it sofmoneyi nbanksand aris
ingf r
omt hec harac teroft het hingdepos i
ted,
unlessatthet i
meof
simi lari ns t itut ionss hal lbeg ov er nedbyt h epr ov isionsc onc er ning thec ons t
ituti
onoft hedepos itt h
ef or merwasnotawar eof,orwasnot
simpl el oan. ( n) expec tedt oknowt h
edang erousc har act
erofthethi
ng,orunlesshe
Art. 1981 . Wh ent h et h ingdepos itedi sdel iv er edc l
os edands eal ed, the noti
f iedth edepos it
ar yoft h
es ame, orthelat
terwasawar eofit
depos i
tar ymus tr et ur ni tint h es amec ondi tion, andh es hallbel iabl e withoutadv i
cefromt h edepos i
tor .
(n)
fordamag ess houl dt h es ealorl oc kbebr okent h roug hh isf aul t. Art.1994. Thedepos itarymayr etaint h ethi
nginpl
edgeunt i
lthefull
Faul tont h epar toft hedepos it
ar yispr es umed, unl es st h erei spr oof paymentofwh atmaybedueh imbyr easonofthedeposit.
(1780)
tot h ec ont rar y. Art.1995 .Adepos itit
sex ti
nguis hed:
Asr eg ardst hev al ueoft h et hingdepos ited, t hes tat ementoft h e (1)Upont helos sordes t r
uctionoft het h
ingdeposi
ted;
depos i
tors hal lbeac c ept ed, wh ent hef or c ibl eopeni ngi si mput abl eto (2)Inc as eofag r
atuitousdepos it,upont hedeathofeitherthe
thedepos it ar y,s houl dt h er ebenopr ooft ot h ec ont rar y.Howev er, the depos i
torort hedepos i
tary.(n)
cour tsmaypas supont hec redi bi lityoft hedepos itorwi thr es pec tt o CHAPTER3
thev aluec lai medbyh im. NECESSARYDEPOSI T
Wh ent hes ealorl oc ki sbr oken, wi thorwi t houtt hedepos itar y'sf aul t,
hes hal lkeept h es ec retoft h edepos it. (176 9a) Art.1996 . Adepos iti snec es s ar y:
Art. 1982. Wh eni tbec omesnec es s ar yt oopenal oc kedboxor (1)Wh eni ti smadei nc ompl ianc ewi thal eg alobl i
g ation;
rec ept ac le, thedepos itar yi spr es umedaut h or izedt odos o, ift h ekey (2)Wh eni ttakespl ac eont heoc c asionofanyc al ami ty ,suc hasf ire,
hasbeendel iv er edt oh im; orwh ent hei ns truc tionsoft h edepos itoras storm, fl
ood, pi llag e, s hipwr ec k, orot h ers imi l
arev ent s .(1781 a)
reg ar dst h edepos itc annotbeex ec utedwi th outopeni ngt heboxor Art.1997. Th edepos itr ef er redt oi nNo. 1oft hepr ec edi ngar ticl
es hall
rec ept ac le. ( n) beg ov ernedbyt hepr ov is ionsoft h elawes tabl i
s hingi t, andi nc aseof
Art. 1983. Th et hingdepos iteds hal lber et ur nedwi thal litspr oduc ts, itsdef icienc y
, byt her ul esonv ol unt arydepos it.
acc es sor iesandac ces s ions . Thedepos itment ionedi nNo. 2oft hepr ecedi ngar ticles hallbe
Shoul dt hedepos itc ons istofmoney ,th epr ov isionsr el at ivet oag ent s regulat edbyt h epr ov is i
onsc onc er ningv olunt arydepos itandbyAr ti
cle
inar ticle1 896s hal lbeappl iedt ot h edepos itar y .(1770) 2168. (1782)
Art. 1984. Th edepos i t
ar yc annotdemandt hatt hedepos itorpr ov eh i
s Art.1998. Th edepos itofef fec tsmadebyt het rav eller si nh otelsori nns
owner s hipoft h et hingdepos ited. shallal s
ober eg ar dedasnec es sar y.Th ekeeper sofh otel sori nns
Nev er thel es s ,sh oul dh edi scov ert hatt h et h ingh asbeens tol enand shallber es pons iblef ort hemasdepos i
tar i
es ,pr ov i
dedt hatnot i
cewas
whoi tst rueowneri s ,hemus tadv is et h el at teroft h edepos it. givent ot hem, ort ot h eirempl oy ees ,oft h eef fec tsbr oug htbyt h e
Ifth eowner , ins pit eofs uc hi nfor mat ion, doesnotc l
ai mi twi th int he gues tsandt hat , ont hepar toft h el at t
er ,theyt aket hepr ec autions
per iodofonemont h ,t hedepos itar ys h al lber eliev edofal l wh i
chs aidh otel -keeper sort hei rs ubs titutesadv i
s edr elat i
v etot he
res pons ibilit ybyr et ur ningt het h ingdepos it edt ot hedepos itor . careandv igilanc eoft hei ref fec ts .(1783)
Ifth edepos i
t ar yh asr eas onabl eg roundst obel iev et h att het h i
ngh as Art.1999. Th eh ot el -keeperi sl iabl ef ort hev eh icles ,ani mal sand
notbeenl awf ullyac qui redbyt hedepos itor , th ef or mermayr et urnt he articleswh ichh av ebeeni nt roduc edorpl acedi nt heannex esoft he
same. (1771 a) hotel. (n) 
Art. 1985 . Wh ent h er ear et woormor edepos itor s, ifth eyar enot Art.2000. Th er es pons ibi l
it yr ef er redt oi nt het wopr ec edi ngar ticl
es
solidar y,andt het hi ngadmi tsofdi vision, eac honec annotdemand shalli ncludet hel os sof ,ori njur yt ot heper s onalpr oper t
yoft he
mor et hanh iss har e. gues tsc aus edbyt h es er vant sorempl oy eesoft hekeeper sofh otelsor
Wh ent her ei ss olidar ityort het h ingdoesnotadmi tofdi vision, the innsaswel lass tr ang er s ;butnott hatwh ichmaypr oc eedf romany
prov is i
onsofAr ticl es1 21 2and1 21 4s h al lg ov er n. Howev er,ift h erei sa forcemaj eur e. Th ef ac tt h att r av el l
er sar ec ons t
rai nedt or elyont he
stipul at iont h att h et hings houl dber et ur nedt ooneoft hedepos i
tor s, vigil
anc eoft hekeeperoft h eh ot elsori nnss hallbec ons ider edin
thedepos it ar ys h al lr etur ni tonl yt ot heper sondes ignat ed. (1 772a) deter mi ningt hedeg reeofc ar er equi redofh im. (1784a)
Art. 1986 . Ift h edepos itors houl dl os eh isc apac it yt oc ont rac taf ter Art.2001 .Th eac tofat h ieforr obber ,wh oh asent er edt heh ot elisnot
hav ingmadet h edepos i
t ,th et hingc annotber et ur nedex ceptt oth e deemedf or cemaj eur e, unl es si tisdonewi tht heus eofar msor
per sonswh omayh av et h eadmi ni s trat ionofh ispr oper tyandr ights . throug hani rres istibl ef or ce. (n)
(1773) Art.2002. Th eh otel -keeperi snotl iablef orc ompens at ioni fth elossis
Art. 1987. Ifatt h et imet h edepos itwasmadeapl ac ewasdes ignat ed duet ot heac tsoft h eg ues t
, h isf ami ly, servant sorv i
s itors ,orift he
fort h er et ur noft h et h ing , t
h edepos itar ymus tt aket het hingdepos ited lossar isesf romt h ec h ar ac t eroft het h i
ng sbr oug h tint ot heh ot el.(
n) 
tos uc hpl ac e; butt h eex pens esf ort rans por tat ions hal lbebor nebyt he Art.2003. Th eh otel -keeperc annotf r
eeh ims el ffromr es pons ibili
tyby
depos i
tor . pos t
ingnot icest ot h eef f ec tt hath eisnotl iabl ef ort h ear t
icles
Ifnopl ac eh asbeendes ignat edf ort her et ur n, its hallbemadewh er e broug h tbyt heg ues t .Anys tipul ationbet weent h eh otel -keeperandt he
thet hingdepos itedmaybe, ev eni fi ts h oul dnotbet hes amepl ac e gues twh er ebyt h er es pons ibi lityoft h efor merass etf or thi nar ti
cles
wher et hedepos i
twasmade, prov idedt hatt h er ewasnomal ic eont he 1998t o2001i ss uppr es sedordi mi nish eds hal lbev oid. ( n)
par toft h edepos itar y .(1774) Art.2004. Th eh otel -keeperh asar ightt or etaint h et hing sbr oug htinto
Art. 1988. Th et hingdepos itedmus tber et ur nedt ot hedepos itorupon theh ot elbyt heg ues t, asas ec ur ityf orc redi tsonac countofl odg i
ng ,
demand, ev ent houg has pec ifiedper i
odort imef ors uc hr etur nmay ands uppl iesus ual lyf ur ni sh edt oh otelg ues ts .(n) 
hav ebeenf ixed.  
Thispr ov is ions h al lnotappl ywh ent het h ingi sj udi cial lyat tac h edwh i
le CHAPTER4
int hedepos itar y'spos s es sion, ors h oul dh eh av ebeennot ifiedoft h e SEQUESTRATI ONORJ UDI CI ALDEPOSI T
oppos i
tionofat hir dper sont ot h er et ur nort h er emov aloft h et h
ing
depos i
ted. Int hes ec as es , thedepos itar ymus timmedi at elyi nf ormt he Art.2005.Ajudic i
aldepos i
torseques trationt akesplacewh enan
depos i
toroft heat tac hmentoroppos ition. (1 775 ) attachmentors ei zureofpr opertyinlitigationisordered. (
1 785)
Art. 1989. Unl es st h edepos itisf orav al uabl ec ons ider at i
on, th e Art.2006.Mov ableaswel lasimmov ablepr opertymaybet heobj ectof
depos i
tar ywh omayh av ej us tifi
abl er eas onsf ornotkeepi ngt h et hing seques t
rati
on. (1786)
depos i
tedmay , ev enbef or et het imedes ig nat ed, retur ni tt ot h e Art.2007.Thedepos it
aryofpr oper t
yorobj ec tssequestratedc annotbe
depos i
tor ; andi ft hel at ters houl dr ef us et or ec ei vei t,t hedepos itary reli
evedofh isr espons i
bili
tyuntilthec ontroversywhichg aver i
se
mays ec ur ei t sc ons ig nat ionf romt hec our t. (1776 a) theretohasc omet oanend, unl
es sthec ourts oorders.(1787a)
Art. 1990. Ift h edepos itar ybyf or cemaj eur eorg ov ernmentor derl oses Art.2008.Thedepos it
aryofpr oper t
ys eques trat
edisboundt ocomply,
thet hingandr ec ei vesmoneyoranot hert h ingi ni tspl ac e, hes hal l withrespecttot hes ame, withalltheobl igationsofag oodf ath
erofa
del ivert h es umorot hert h i
ngt ot h edepos itor .( 1777a) family.(
1788)
Art. 1991 . Th edepos itor 'sh ei rwh oi ng oodf ai thmayh av es ol dt h et hing Art.2009.Astomat tersnotpr ovi
dedf orint hi
sCode, judicial
whic hh edi dnotknowwasdepos ited, sh al lonl ybeboundt or et urnt h e seques t
rati
ons h allbeg overnedbyt heRul esofCour t.(1789 ) 
pric eh emayh av er ec eiv edort oas sig nh isr ig htofac tionag ai ns tt he  
buy eri nc as et h epr ic eh asnotbeenpai dh im. (1 778)   Titl
eXI II
.-ALEATORYCONTRACTS
   
SECTI ON3. -Obl igat i
onsoft h eDepos i tor GENERALPROVI SIONS

Art.1
992.Ifth
edepositi
sg r
atui
tous,t
hedeposit
ori
sobl
igedto Art.
2010.Byanal
eator
yc ontr
act
,oneofthepar
tiesorbot
h
reimbur
s ethedepos
itar
yfortheexpenseshemayhavei
ncur
redfor reci
procall
ybi
ndthemselvestogi
veortodosomethi
ngin
thepreservat
ionoft
hethingdeposi
ted.(1
779a) consi
derati
onofwhatt
h eothers
hallg
iveordouponthehappeni
ngof
aneventwhichi
sunc
ert
ain,
orwh
ichi
stooc
curatani
ndet
ermi
nat
e enjoyingi tdiess h
al lbepai di nproportiontot heday sdur i
ngwh i
chhe
ti
me.(1790)
  li
ved; ifthei ncomes h
oul dbepai dbyinstallmentsi nadv ance, t
he
  wholeamountoft hei nstallmentwh i
chbeg ant orundur i
ngh isl i
feshall
CHAPTER1 bepai d. (1806)
INSURANCE Art.2026 .Hewh ocons ti
tutesanannui tybyg ratui
toustitleuponh i
s
proper ty,maypr ovideatt hetimet heannui tyisestabli
s hedt hatthe
Art.2011.Thecont r
ac tofinsuranceisg
ov ernedbys peci
allaws. sames hallnotbes ubjec tt
oex ecuti
onorat tachmentonac countoft h
e
Mat tersnotex presslyprovidedforinsuchs peci
allawsshallbe obligationsoft her ecipientoft heannui ty.
Ift h
eannui t
ywas
regulatedbyt hisCode. (
n) constitutedi nfraudofc reditors,thelattermayas kforth eex ecuti
on
Art.2012.Anyper sonwh oisf or
biddenf
r omr ecei
vinganydonat i
on orat tachmentoft hepr oper t
y.(1807a)
underAr ticl
e739c annotbenamedbenef ic
iaryofal i
feinsurance Art.2027. Noannui tys hallbec laimedwi thoutf i
rstprovingthe
policybyth epersonwh oc annotmakeanydonat i
ont ohi
m, accordi
ngt
o existenc eoft heper sonuponwh oseli
fet heannui tyiscons t
ituted.
saidarticle.(
n)  
  (1808)  
   
CHAPTER2 Titl
eXI V.-COMPROMI SESANDARBI TRATI ONS
GAMBLI NG  
CHAPTER1
Art.201 3.Ag ameofc hanc ei st hatwh i
c hdependsmor eonc h anc eor COMPROMI SES
hazardt hanors killorabi lity.Fort hepur pos esoft h ef ol lowi ngar ticles,
incas eofdoubtag amei sdeemedt obeoneofc hanc e. ( n)  Art.2028. Ac ompr omi sei sac ont rac twh er ebyt hepar ties , bymaki ng
Art.201 4.Noac tionc anbemai nt ainedbyt h ewi nnerf ort h ec ollec tion recipr oc alc onc es sions ,av oi dal it
ig ationorputanendt ooneal ready
ofwh ath eh aswoni nag ameofc hanc e. Butanyl os eri nag ameof commenc ed. (1 809a)
chanc emayr ec ov erh isl os sf romt hewi nner ,wi t
hl eg ali nter es tf rom Art.2029. Th ec our ts h allendeav ort oper suadet hel it
ig ant si nac i
v il
thetimeh epai dt heamountl os t, ands ubs idiar i
lyf romt h eoper at oror caset oag reeupons omef ai rc ompr omi s e. (n)
manag eroft heg ambl i
ngh ous e. (1799a) Art.2030. Ev er yc iv ilac tionorpr oc eedi ngs h al lbes us pended:
Art.201 5.Ifc heat ingordec ei tisc ommi ttedbyt hewi nner , he, and (1)I fwi lling nes st odi scus sapos s iblec ompr omi sei sex pr es sedbyone
subsidiar il
yt heoper at orormanag eroft h eg ambl ingh ous e, shal lpay orbot hpar ties ;or
bywayofex empl ar ydamag es, notl esst h ant h eequi val entoft hes um (2)I fitappear st h atoneoft h epar ties, bef or et hec ommenc ementof
lost
, inaddi tiont ot h elat teramount .Ifbot ht hewi nnerandt hel os er theac tionorpr oc eedi ng , of fer edt odi s cus sapos s iblec ompr omi sebut
haveper petr atedf raud, noac tionf orr ec over yc anbebr oug htbyei ther. theot herpar tyr ef usedt h eof f er.
(n) Thedur at ionandt ermsoft h es us pens i
onoft h ec ivilac tionor
Art.201 6.Ifth el os err ef us esorneg lectst obr inganac tiont or ec ov er proc eedi ngands imi larmat ter ss h allbeg ov er nedbys uc hpr ov i
s ionsof
whath asbeenl os t,hisorh erc r edi tors, spous e,des cendant sorot h er ther ul esofc our tast heSupr emeCour ts h al lpr omul gat e. Sai dr ul esof
personsent itledt obes uppor tedbyt hel os ermayi ns titut et heac tion. cour ts hal ll ikewi sepr ov idef ort h eappoi nt mentanddut iesof
Thes umt her ebyobt aineds hallbeappl iedt ot hec r edi tor s' claims ,or ami cabl ec ompounder s .(n)
tothes uppor toft hes pous eorr el atives ,ast hec as emaybe. (n) Art.2031 . Th ec our tsmaymi tigat et hedamag est obepai dbyt h el os ing
Art.201 7.Thepr ov isionsofAr tic le201 4and201 6appl ywh ent woor part ywh oh ass h ownas inc er edes iref orac ompr omi se. ( n)
moreper sonsbeti nag ameofc hanc e, alt houg ht heyt akenoac tive Art.2032. Th ec our t '
sappr ov ali snec es sar yi nc ompr omi s esent er ed
partint heg amei tself.( 1799a) intobyg uar dians ,par ent s ,abs ent ee' sr epr es ent at i
v es, and
Art.201 8.Ifac ont rac twh ichpur por tstobef ort hedel iver yofg oods , admi nistr at or sorex ec ut or sofdec edent 'ses tat es .( 1810a)
securitiesors h ar esofs toc ki sent eredi ntowi tht hei nt ent iont hatt he Art.2033. Jur idic alper s onsmayc ompr omi s eonl yi nt hef or mandwi t h
diff
er enc ebet weent hepr ic es tipul atedandt heex c hang eormar ket ther equi siteswh i
c hmaybenec es sar yt oal ienat et h eirpr oper ty.
priceatt het imeoft hepr et endeddel iv erys hallbepai dbyt h el os ert o (1812a)
thewi nner ,thet rans ac tioni snul landv oi d.Th el osermayr ec ov erwh at Art.2034. Th er emaybeac ompr omi seupont h ec ivill i
abi lit yar i
s ing
heh aspai d.(n) fromanof fens e; buts uc hc ompr omi ses h allnotex ting uis ht h epubl ic
Art.201 9.Bet tingont her es ultofs ports ,at hleticc ompet itions ,or ac t
ionf ort hei mpos i
t ionoft h el eg alpenal ty. (1 81 3)
gamesofs killmaybepr oh ibitedbyl oc alor dinanc es .( n) Art.2035 . Noc ompr omi seupont hef ollowi ngques tionss hal lbev al id:
Art.2020. Thel os eri nanyg amewh ichisnotoneofc h anc e, wh ent h ere (1)Th ec iv ils tat usofper s ons ;
isnol oc alor dinanc ewh ic hpr oh ibi tsbet tingt herein, isunder (2)Th ev al idi tyofamar riag eoral egals epar at ion;
obli
g ationt opayh islos s ,unl es st h eamountt her eofi sex ces s i
veunder (3)Anyg r oundf orl eg als epar at ion;
thec i
rc ums tanc es .Inth el at terc as e,th ec our ts hal lreduc et h el os sto (4)Fut ur es uppor t ;
thepr opers um. (1801 a)   (5)Th ej ur isdi ctionofc our ts ;
  (6)Fut ur el eg itime. (
1 81 4a)
CHAPTER3 Art.2036 . Ac ompr omi s ec ompr isesonl yt hos eobj ec tswh ichar e
LIFEANNUI TY defini telys tat edt h erei n, orwh ichbynec es s ar yi mpl icat ionf r omi ts
termss houl dbedeemedt oh av ebeeni nc ludedi nt hes ame.
Art .2021 .
Th eal eat oryc ont ractofl if
eannui tybi ndst hedebt ortopay Ag ener alr enunc iat i
onofr igh tsi sunder s toodt or ef eronl yt ot h os e
anannualpens i
onori nc omedur ingt hel ifeofoneormor e thatar ec onnec tedwi t ht h edi sput ewh i
c hwast hes ubj ec toft he
det er mi nat eper sonsi nc ons iderat i
onofac api talc onsistingofmoney compr omi s e. (181 5 )
orot h erpr oper t
y, whos eowner s
h i
pi st rans fer redt oh imatonc ewi th Art.2037. Ac ompr omi seh asupont h epar tiest heef fectandaut hor ity
thebur denoft hei ncome. (1802a) ofr esj udi cat a; butt her es h allbenoex ec ut ionex c epti nc ompl ianc e
Art .2022. Theannui tymaybec ons ti
tutedupont helifeoft heper son withaj udi cialc ompr omi s e. (1 816 )
wh og ivest hec apital,upont hatofat hirdper son, orupont hel iv
esof Art.2038. Ac ompr omi sei nwh ic ht her ei smi s take, fraud, v iol enc e,
var iousper sons,al lofwh ommus tbel ivingatt het i
met heannui tyis inti
mi dat ion, unduei nf luenc e, orf al sityofdoc ument s, iss ubj ec tt ot he
est abl ished. prov isionsofAr tic le1 330oft h isCode.
Itmayal sobec ons ti
tutedi nf avoroft h eper sonorper sonsupon Howev er, oneofpar ti
esc annots etupami s takeoff ac tasag ai ns tt he
wh os el i
feorl ivest hec ont rac tisent eredi nto, ori nfav orofanot heror otheri fth el att er, byv i r
t ueoft hec ompr omi s e, h aswi th dr awnf roma
oth erper s ons.(1803) lit
igat ional readyc ommenc ed. (1 81 7a)
Art .2023. Lifeannui t
ys hal lbev oidi fcons t itutedupont hel if
eofa Art.2039. Wh ent hepar tiesc ompr omi seg ener all yonal ldi ff er enc es
per s onwh owasal r eadydeadatt het imet hec ontrac twasent eredi nto, wh i
c ht heymi g hth av ewi t heac hot her ,th edi sc ov er yofdoc ument s
orwh owasatt hatt imes uffer i
ngf romani llnes swh i c
hc aus edh is refer ringt ooneormor ebutnott oal loft h eques tionss et t leds h all
deat hwi th i
nt went yday sf ollowings ai ddat e. (
1 804) noti tsel fbeac aus ef orannul mentorr es cis s ionoft hec ompr omi se,
Art .2024. Thel ackofpay mentoft heinc omeduedoesnotaut horizethe unles ss aiddoc ument sh av ebeenc onc eal edbyoneoft h epar t i
es .
rec ipi entoft helifeannui tyt odemandt h er eimbur sementoft he Butt h ec ompr omi semaybeannul ledorr es c indedi fi tr ef er sonl yt o
capi t alort oretakepos ses sionoft hepr oper tyalienat ed, unlesst here onet hingt owh ichoneoft h epar tiesh asnor ig ht, ass hownbyt henewl y-
isas tipulationt ot hec ont rary;hes hal lhav eonl yar i
gh tjudiciallyto discov er eddoc ument s .(n)
claimt hepay mentoft hei nc omei nar rearsandt or equireas ecurity Art.2040. Ifaf teral i
t i
g at ionh asbeendec idedbyaf inalj udg ment , a
fort h ef utur eincome, unl esst herei sas tipul ationt ot hec ontrary . compr omi s es houl dbeag reedupon, ei therorbot hpar tiesbei ng
(1805 a) unawar eoft heex istenc eoft h ef inalj udg ment , thec ompr omi s emaybe
Art .2025 .Thei ncomec or respondi ngt ot hey eari nwh ichtheper son resc inded.
Ignoranceofajudg mentwh ic
hmayber evokedors etasi
deisnota Bet
weent
heGuar
ant
orandt
heCr
edi
tor
vali
dg roundforattackingac ompromise.(181
9a)
Art.2041.I
foneoft hepar t
iesfailsorrefus
est oabidebythe Art.205 8.Th eg uar ant orc annotbec ompel ledt opayt hec r edi torunl ess
compr omise,
theot herpartymayei th
erenforcethec ompromis
eor thel atterh asex haus tedal lt hepr oper t yoft hedebt or, andh as
regarditasrescindedandi nsistuponhisorig
inaldemand. (
n)  resor tedt oal lt hel eg alr emedi esag ains tt hedebt or.(1830a)
  Art.205 9.Th eex cus sions hal lnott akepl ac e:
CHAPTER2 (1)Ift heg uar ant orh asex pr es slyrenounc edi t;
ARBI TRATIONS (2)I fh eh asboundh i
ms el fs olidar ilywi tht hedebt or;
(3)I nc as eofi ns ol venc yoft hedebt or ;
Art.2042.Th esameper sonswhomayent erint
oac ompr omisemay (4)Wh enh eh asabs conded, orc annotbes uedwi t
hint hePh ilippi nes
submi tt
h eircontr ov ersi
est ooneormor earbitr
atorsf ordec i
s i
on. unles sh eh asl ef tamanag erorr epr es ent at ive;
(1820a) (5)I fitmaybepr es umedt hatanex ec ut ionont h epr oper tyoft he
Art.2043.Th eprov isionsoft heprecedingCh apteruponc ompr omises princ i
paldebt orwoul dnotr es ulti nt h es at is fac ti
onoft heobl igat ion.
shallalsobeappl icablet oarbit
rations.(1
821a) (1831 a)
Art.2044.Anys tipul at i
ont h
atthear bit
rators'
awar dordec is
ions hall Art.206 0.Inor dert hatt heg uar ant ormaymakeus eoft hebenef itof
bef i
nal,isv al
id, with outprejudi
cet oArticl
es2038, 2039 ,and2040. (n) exclus ion, h emus ts eti tupag ains tt h ec redi torupont hel at t
er 's
Art.2045.Anyc laus eg i
vingoneoft hepar t
iespowert oc hoos emor e demandf orpay mentf romh i
m, andpoi ntoutt ot h
ec redi torav ail able
arbitr
ator sthant h eot herisvoidandofnoef fect
.(n) proper tyoft hedebt orwi th inPh il
ippi net er rit ory ,
suf fi
c i
entt oc ov er
Art.2046.Th eappoi ntmentofar bit
ratorsandt hepr ocedur efor theamountoft hedebt .(1832)
arbitr
ations hallbeg overnedbythepr ovisi
onsofs uchr ulesofc ourtas Art.206 1.Th eg uar ant orh av i
ngf ulfilledal lt h ec onditionsr equi redi n
theSupr emeCour ts hallpromulgate.(n)  thepr ec edingar tic le, thec redi torwh oi sneg ligenti nex haus tingt h e
  proper typoi nt edouts hal ls uf fert hel os s ,tot h eex tentofs ai d
Titl
eXV. -GUARANTY proper ty,fort hei ns ol venc yoft hedebt orr es ultingf roms uc h
CHAPTER1 neg ligenc e. (1833a)
NATUREANDEXTENTOFGUARANTY Art.206 2.Inev er yac tionbyt hec redi tor , wh ic hmus tbeag ains tt he
princ i
paldebt oral one, ex cepti nt hec as esment i
onedi nAr tic le205 9,
Ar t.2047. Byg uar ant yaper son, cal ledt h eg uar ant or ,bindsh ims elfto thef or mers h allas kt h ec our tt onot if yt heg uar ant oroft h eac tion. The
thec r edi tort of ul fillt heobl ig at ionoft h epr i
nc ipaldebt ori nc as et he guar ant ormayappears ot hath emay ,ifh es odes i
re, setups uc h
lat ters houl df ai lt odos o. defens esasar eg rant edh imbyl aw. Th ebenef i
tofex cus sion
Ifaper sonbi ndsh ims el fs ol i
dar ilywi tht h epr i
nc ipaldebt or ,t he ment i
onedi nAr ticle205 8s h allal way sbeuni mpai red, eveni fjudg ment
pr ov isionsofSec tion4, Ch apt er3, TitleIoft hisBooks hal lbeobs erved. shoul dber ender edag ai ns tth epr inc ipaldebt orandt heg uar ant ori n
Ins uc hc as et h ec ont r ac ti sc al ledas ur ety ship. (1822a) caseofappear anc ebyt h el at ter.(1 834a)
Ar t.2048. Ag uar ant yi sg rat ui tous ,unl es st her eisas ti
pul at iont ot he Art.206 3.Ac ompr omi s ebet weent hec r edi torandt hepr inc ipaldebt or
cont rar y.( n) benef itst heg uar ant orbutdoesnotpr ej udi ceh im. Thatwh ichi s
Ar t.2049. Amar riedwomanmayg uar ant eeanobl i
g at ionwi t houtt he enter edi ntobet weent heg uar ant orandt hec reditorbenef itsbutdoes
hus band' sc ons ent ,buts hal lnott her ebybi ndt hec onj ugalpar tner ship, notpr ejudi cet hepr inc i
paldebt or .(1835 a)
ex cepti nc as espr ov idedbyl aw. (n) Art.206 4.Th eg uar ant orofag uar ant ors h al lenj oyt h
ebenef itof
Ar t.205 0. Ifag uar ant yi sent er edi ntowi thoutt heknowl edg eor excus s i
on, bot hwi t hr es pec tt ot h eg uar ant orandt ot hepr inc ipal
cons ent , orag ains tt hewi lloft hepr inc ipaldebt or, th epr ov isionsof debt or .(1836 )
Ar tic les1 236and1 237s hal lappl y.(n) Art.206 5.Sh oul dt h erebes ev eralg uar ant or sofonl yonedebt orandf or
Ar t.205 1.Ag uar ant ymaybec onv ent ional ,leg alorj udi ci al, g ratui t
ous , thes amedebt ,theobl igat iont oans werf ort h es amei sdi videdamong
orbyoner oust itle. all.Th ec redi torc annotc lai mf romt h eg uar ant or sex ceptt h es har es
Itmayal sobec ons tit uted, notonl yi nf av oroft hepr incipaldebt or ,but whic ht heyar er es pec tivel yboundt opay , unl es ss ol i
dar it
yh asbeen
als oi nf av oroft h eot herg uar ant or ,wi tht hel atter 'sc ons ent , orwi thout expr es slys tipul at ed.
hisknowl edg e, orev enov erh isobj ec tion. ( 1823) Thebenef i
tofdi visionag ains tt hec o-g uar ant orsc eas esi nt hes ame
Ar t.205 2. Ag uar ant yc annotex i stwi th outav alidobl igation. casesandf ort hes amer eas onsast h ebenef itofex cus si
onag ains tth
e
Nev er th eles s,ag uar ant ymaybec ons titut edt og uar ant eet h e princ i
paldebt or.( 1837)  
per f or manc eofav oi dabl eoranunenf or c eabl ec ont rac t.Itmayal s o  
guar ant eeanat ur alobl i
g at ion. (1 824a) SECTI ON2. -Ef fec tsofGuar ant y
Ar t.205 3. Ag uar ant ymayal sobeg ivenass ec ur i
tyf orf ut ur edebt s,the Bet weent heDebt orandt h eGuar ant or
amountofwh ichi snoty etknown; ther ec anbenoc lai mag ai ns tth e
guar ant orunt ilt h edebti sl i
qui dat ed. Ac ondi tionalobl ig at ionmay Art.206 6 .
Th eg uar ant orwh opay sforadebt ormus tbei ndemni fi
edby
als obes ec ur ed. (1825 a) thelat ter .
Ar t.205 4. Ag uar ant ormaybi ndh ims el ff orl es s,butnotf ormor et han Thei ndemni tyc ompr is es:
thepr inc i
paldebt or , bot hasr eg ardst h eamountandt heoner ous (1)Th et ot alamountoft hedebt ;
nat ur eoft h ec ondi tions . (2)Th el eg ali nter estst h
er eonf romt het imet h epay mentwasmade
Sh oul dh eh av eboundh ims el ff ormor e, hisobl igat ionss h al lbe knownt ot h edebt or ,ev ent houg hitdidnotear ni nt eres tf ort he
reduc edt ot h el imi tsoft hatoft hedebt or. (1826 ) creditor ;
Ar t.205 5. Ag uar ant yi snotpr es umed; itmus tbeex pr essandc annot (3)Th eex pens esi ncur redbyt heg uar ant oraf terh av ingnot ifiedthe
ex tendt omor et h anwh ati ss tipul at edt h erei n. debtort hatpay menth adbeendemandedofh i
m;
Ifi tbes impl eori ndef inite, its h al lc ompr omi s enotonl yt hepr i
nc ipal (4)Damag es,i ftheyar edue. (1838a)
obl ig at i
on, butal s oal li tsac ces sor i
es ,inc ludi ngt h ej udi c ialc osts, Art.206 7. Theg uar ant orwh opay siss ubr og atedbyv ir
t uet h ereoft oall
pr ov idedwi thr es pec tt ot hel at ter, thatt h eg uar ant ors h al lonl ybe therig htswh i
c ht hec r editorh adag ains tthedebt or .
liabl ef ort h os ec os tsi nc ur redaf terh eh asbeenj udi c i
al lyr eq uiredt o Iftheg uar antorh asc ompr omisedwi t ht hec redit or ,hec annotdemand
pay . (1 827a) ofthedebt ormor et hanwh atheh asr eal l
ypai d. (1 839 )
Ar t.205 6. Onewh oi sobl i
g edt of ur nishag uar ant ors hallpr es enta Art.206 8. Iftheg uar ant ors houldpaywi thoutnot ify ingt hedebt or,t
he
per s onwh opos ses s esi nt eg rity, capac ityt obi ndh ims elf, ands uf fi
c i
ent latt
ermayenf or ceag ains thimal lt h
edef enseswh ic hh ec oul dh aves et
pr oper tyt oans werf ort heobl ig at ionwh ichh eg uar ant ees .Th e upag ains tthec redi toratt het i
met hepay mentwasmade. (1840)
guar ant ors hal lbes ubj ec tt ot h ej uris di ctionoft hec our toft h epl ace Art.206 9. Ifthedebtwasf oraper i
odandt heg uar ant orpai di tbefore
wh er et hisobl i
g at ioni st obec ompl i
edwi th.( 1828a) itbec amedue, h ec annotdemandr eimbur sementoft hedebt orunt i
l
Ar t.205 7. Ift heg uar ant ors houl dbec onv ic t
edi nf irs tins tanc eofa theex pirat i
onoft heper iodunl es sthepay menth asbeenr atifiedby
crimei nv ol vingdi sh ones tyors h oul dbec omei ns olv ent ,th ec redi tor thedebt or .(1
841 a)
maydemandanot herwh oh asal lt hequal ifi
c ationsr equi redi nt he Art.2070. Iftheg uar ant orh aspai dwi th outnot ify ingt h edebt or ,andth e
pr ec edi ngar ticle. Th ec as ei sex cept edwh er et hec redi torh asr equi red latt
ernotbei ngawar eoft h epay ment ,r epeat st hepay ment ,
t heformer
ands tipul at edt hatas pec ifiedper sons h oul dbet h eg uar ant or . hasnor emedywh atev erag ainstthedebt or,butonl yag ains tth e
(1829a)   creditor .Nev er thel es s,inc aseofag rat uitousg uar ant y,ift he
  guarant orwaspr ev ent edbyaf ortuitousev entf romadv i
s ingt hedebt or
CHAPTER2 ofthepay ment ,andt h ec reditorbec omesi nsolv ent , thedebt ors hall
EFFECTSOFGUARANTY reimbur set heg uar ant orf ortheamountpai d.(1842a)
SECTI ON1 . -Ef fec tsofGuar ant y Art.2071 .
Th eg uar ant or,ev enbef oreh av i
ngpai d, maypr oc eedag ainst
thepr incipaldebt or: Ti
tl
eXVI.-PLEDGE,
MORTGAGEANDANTI
CHRESI
S
(1)Wh enh eiss uedf ort hepay ment ;  
(2)Inc as eofi ns olvenc yoft hepr inc i
paldebt or ; CHAPTER1
(3)Wh ent h edebt orh asboundh i
ms elftor eliev eh i
mf romt heg uar anty PROVISI
ONSCOMMONTOPLEDGEANDMORTGAGE
withinas pec ifiedper iod, andt hi
sper iodh asex pired;
(4)Wh ent h edebth asbec omedemandabl e, byr eas onoft heex piration Art.2085 . Th ef ol l
owi ngr equi s itesar ees sent i
alt ot hec ontrac tsof
oft heper iodf orpay ment ; pledg eandmor tg ag e:
(5)Af tert h el aps eoft eny ear s,wh ent hepr inc ipalobl i
g ationh asno (1)Th att h eybec ons titut edt os ec ur et hef ul f
ill
mentofapr inc ipal
fix
edper iodf ori tsmat urity, unlessi tbeofs uc hnat uret hati tc annot obligat i
on;
beex t
ing uis hedex ceptwi thinaper i
odl ong ert h ant eny ear s; (2)Th att h epl edg orormor tgag orbet h eabs olut eowneroft het hi
ng
(6)Ifth er ear er eas onabl eg roundst of eart hatt hepr i
nc ipaldebt or pledg edormor tgag ed;
intendst oabs c ond; (3)Th att h eper s onsc ons titut ingt h epl edg eormor tg ag eh avet hefree
(7)Ift hepr inc ipaldebt ori si nimmi nentdang erofbec omi ngi nsolvent. dispos aloft heirpr oper t y,andi nt h eabs enc et hereof ,thatt heybe
Inallt hes ec as es ,theac t
ionoft h
eg uar antori st oobtainr eleas ef r
om legallyaut h orizedf ort h epur pos e.
theg uar ant y,ort odemandas ecur itythats hal lpr otecth imf r omany Thirdper sonswh oar enotpar tiest ot hepr incipalobl igat i
onmay
proceedi ng sbyt h ecr editorandf romt hedang erofi nsolvenc yoft he secur eth el atterbypl edg ingormor tgag i
ngt h
eirownpr oper ty.(1857)
debt or.(1 834a) Art.2086 . Th epr ov isionsofAr ticle205 2ar eappl icabl et oapl edg eor
Art.2072. Ifone, atth er eques tofanot her,bec omesag uar ant orfort he mor tgag e. (n)
debtofat hirdper s
onwh oi snotpr es ent,theg uar antorwh os atisfies Art.2087. Iti sal sooft hees s enc eoft h es ec ontrac tst hatwh ent he
thedebtmays ueei t
h ert heper sons oreques tingort hedebt orf or principalobl igat ionbec omesdue, thet h i
ng sinwh icht hepl edg eor
reimbur s ement .(n)  mor tgag ec ons istsmaybeal ienat edf ort hepay mentt ot hec redi tor.
  (1858)
SECTI ON3. -Ef fec t
sofGuar antyasBet weenCo- Guarant or s Art.2088. Th ec redi torc annotappr opriat et het hing sg ivenbywayof
pledg eormor tg ag e, ordi spos eoft hem. Anys tipulat iont ot hec ontrary
Art.2073.Wh ent her ear et woormor eg uarantorsoft h esamedebt or isnul landv oid. (1 85 9a)
andf orthes amedebt ,theoneamongt hemwh ohaspai dmaydemand Art.2089. Apl edg eormor tgag ei si ndiv isible,ev ent h oug hthedebtmay
ofeac hoft heot her st hes harewh i
chispr oportionallyowi ngf r
omh im. bedi videdamongt hes uc ces s orsi ni nter es toft hedebt ororoft he
Ifanyoft heg uar ant orss houldbei nsolvent,hisshar es hallbeborneby creditor.
theot hers,inc ludingt h epay er,inth esamepr oportion. Theref ore, thedebt or 'sh ei rwh oh aspai dapar toft hedebtc annotas k
Thepr ovisionsoft h
isar ti
cles hallnotbeappl icable, unlesst h
e forth epr opor t i
onat eex ting uis hmentoft hepl edg eormor tgag eas
pay menth asbeenmadebyv i
rtueofaj udici
aldemandorunl essthe longast h edebti snotc ompl et el ys atisfied.
principaldebt ori sins olvent.(1844a) Nei therc ant h ec r edi tor '
sh eirwh or ec eiv edh iss hareoft hedebt
Art.2074.Int h ec aseoft hepr ecedingar ti
cle,thec o-guar antorsmay returnt hepl edg eorc anc elt h emor tgag e, tothepr ejudi ceoft h eother
setupag ains tt h
eonewh opai d, t
hes amedef enseswh ichwoul dhave heirswh oh av enotbeenpai d.
per t
ainedt ot h epr inc i
paldebt orag ainstthec reditor,andwh i
char e Fromt hes epr ov isionsi sex pec tedt hec as einwh i
ch ,th erebei ng
notpur elyper sonalt oth edebt or.(1845) sever alt hing sg iv eni nmor tgag eorpl edg e,eac honeoft hem
Art.2075.As ub- guar antor ,incas eoft heinsolvencyoft heg uarant
or guar anteesonl yadet ermi nat epor tionoft hec redit.
forwh omh eboundh ims elf
, i
sr espons i
blet othec o-guar antorsinthe Thedebt or , int hisc as e, shal lh av ear ig httot heex tingui shmentoft he
samet er
msast heg uar ant or.(1846)  pledg eormor tg ag east h epor t i
onoft hedebtf orwh icheac ht hingis
  spec iall
yans wer abl ei ss at isfied. (186 0)
CHAPTER3 Art.2090. Th ei ndi vis ibilityofapl edg eormor tgag eisnotaf fec tedby
EXTI NGUI SHMENTOFGUARANTY thef actt h att hedebt or sar enots olidar ilyliable. (n)
Art.2091 .Th ec ont r ac tofpl edg eormor tg agemays ec ur eal lki ndsof
Art.2076 .Theobl igat i
onoft heg uar antori sex ting uish edatt hes ame obligat i
ons ,bet heypur eors ubj ec ttoas uspens i
veorr esolut ory
ti
meast hatoft hedebt or, andf ort hes amec aus esasal lother condi ti
on. (186 1)
obligations .
(1847) Art.2092. Apr omi s et oc ons titut eapl edg eormor tgag eg i
vesr iseonly
Art.2077. Ifthec redi torv olunt ar il
yac cept simmov abl eorot h er toaper s onalac tionbet weent hec ontr ac ti
ngpar ties ,withoutpr ejudice
proper tyinpay mentoft hedebt , eveni fh es houl daf terwar dsl oset he tot hec rimi nalr es pons ibi lityinc ur redbyh imwh odef raudsanot her,by
samet hroughev i
ction, th eg uar ant orisr eleas ed. (1 849 ) offeringi npl edg eormor tgag easunenc umber ed, thing swh i
c hh eknew
Art.2078. Ar el
eas emadebyt hec reditori nfav orofoneoft he wer es ubjec ttos omebur den, orbymi s repr esent i
ngh ims elft obet he
guarant ors,withoutt hec ons entoft heot hers ,benef itsal ltot heex tent owneroft h es ame. (1 86 2) 
ofthes h areoft heg uar ant ortowh omi th asbeeng rant ed. (
185 0)  
Art.2079. Anex tens iong rant edt ot h edebt orbyt hec redi torwi thoutthe CHAPTER2
consentoft heg uar ant orex ti
ng ui s
h est heg uar ant y.Th emer ef ailure PLEDGE
ont hepar toft hec reditort odemandpay mentaf tert hedebth as
becomeduedoesnotofi tselfc ons tituteanyex tent ionoft ime Art. 2093. Inaddi t
iont ot her equi sitespr esc ribedi nAr ti
cle2085 ,itis
referredt oh erein. (185 1a) nec es sary, inor dert oc ons titutet h ec ont r
ac tofpl edg e, t
hatt het hing
Art.2080. Theg uar ant ors, event houg ht heybes ol i
dar y,ar erel eased pledg edbepl ac edi nt hepos s ess ionoft hec r editor, orofat hir
d
fromt heirobl i
g ationwh enev erbys omeac toft h ec redi tort heyc annot per sonbyc ommonag reement .(186 3)
bes ubrog atedt ot her igh ts,mor tgag es,andpr ef erenc eoft hel att
er. Art. 2094. Al lmov ableswh i
c har ewi th i
nc ommer cemaybepl edg ed,
(1852) prov idedt h eyar es us cept ibleofpos session. (1
86 4)
Art.2081 .Theg uarant ormays etupag ains tthec redi toral lthe Art. 2095. Inc orpor ealr ights,ev idenc edbyneg ot i
abl ei nstr
ument s,bill
s
defens eswh ichper taint ot hepr incipaldebt orandar ei nherenti nt he ofl ading, s har esofs toc k,bonds , war ehous er eceipt sands imilar
debt; butnott hos et hatar eper sonalt oth edebt or. (185 3)  doc ument smayal sobepl edg ed. Th ei nstrumentpr ov ingt h
er i
ght
  pledg eds hal lbedel i
v eredt ot hec reditor, andi fneg otiable, mustbe
CHAPTER4 indor sed. (n)
LEGALANDJ UDI CI ALBONDS Art. 2096. Apl edg es h allnott akeef f ectag ai nstth i
rdper sonsi fa
des criptionoft het hingpl edg edandt hedat eoft hepl edg edonot
Art.2082.Thebonds manwh oistobeof fer
edinv i
rtueofapr ovisi
onof appeari napubl icins trument . (
1 86 5a)
laworofaj udicialor ders h
allhavethequalif
icati
onspr escri
bedin Art. 2097. Wi tht hec ons entoft hepl edg ee, thet h i
ngpl edgedmaybe
Articl
e205 6andi ns peciallaws.(1
854a) alienat edbyt h epledg ororowner , subjec tt ot hepl edg e.Theowner s h
ip
Art.2083.Iftheper s
onboundt og i
veabondi nthec asesofthe oft het hingpl edg edi st rans mittedt ot hev endeeort rans f
er eeass oon
precedingar tic
le, shouldnotbeabl et odoso,apledg eormor tg
ag e ast h epledg eec ons ent st ot heal i
enat i
on, butt helat ters hallcontinue
considereds uffi
c i
entt oc overhisobli
gati
onshallbeadmi ttedinlieu inpos sess ion. (n)
thereof.(1855) Art. 2098. Th ec ont rac tofpl edg eg iv esar i
g htt ot hec reditort oretai n
Art.2084.Aj udici
albonds manc annotdemandt heex h
aus t
ionofthe thet hingi nh ispos ses sionori nt hatofat hirdper sont owh omi thas
propertyoft hepr incipaldebtor. beendel iv er ed, untilt hedebti spai d.(186 6a)
As ub-suretyinthes amec ase,cannotdemandt heex haust
ionoft h
e Art. 2099. Th ec redi tors halltakec ar eoft het hi
ngpl edg edwi ththe
propertyoft hedebt oroft hes uret
y.  diligenc eofag oodf ath erofaf ami ly ;
heh asar i
ghtt ot he
  reimbur sementoft h eex pens esmadef ori tspr eserv ation,andi sliable
fori tsl os sordet er ior at i
on, inc onf or mi t ywi tht hepr ov i
s ionsoft h is havebeenr ec ei v
edt h epur chas epr i
c e,asf arast hepl edg ororowner
Code. (1 86 7) isconc er ned. ( n)
Art .21 00. Th epl edg eec annotdepos itt het hi ngpl edg edwi that hird Art.21 15 .Th es aleoft het h i
ngpl edg eds h allex tingui sht h epr inc i
pal
per son, unl es st her ei sas tipul at ionaut h or iz ingh imt odos o. oblig at ion, wh et herornott hepr oc eedsoft hes alear eequalt ot he
Thepl edg eei sr es pons iblef ort h eac t sofh isag ent sorempl oy eeswi t
h amountoft hepr inc i
palobl igat ion, int eres tandex pens esi napr oper
res pec tt ot het h ingpl edg ed. (n) case. Ift hepr i ceoft h es al eismor et hans ai damount ,th edebt ors hall
Art .21 01 . Th epl edg orh ast hes amer es pons ibi lityasabai lori n notbeent itledt ot heex ces s
, unl es si tisot her wis eag reed. Ift hepr ice
commodat umi nt hec as eunderAr tic le1 95 1. (n) oft hes al ei sl es s ,nei t
hers hallt h ec redi torbeent itledt or ec ov ert h
e
Art .21 02. Ift h epl edg eear nsorpr oduc esf rui ts ,inc ome, div idends ,or defic ienc y,not with standi nganys t i
pul ationt ot h ec ont rar y.( n)
inter es t s, thec r edi tors hal lc ompens at ewh ath er ec ei veswi tht h os e Art.21 16 .Af tert hepubl icauc t i
on, thepl edg ees h allpr ompt lyadv i
s e
wh ichar eowi ngh im; buti fnonear eowi ngh im, ori ns of arast heamount thepl edg ororowneroft her es ultt her eof .(n)
mayex ceedt hatwh ichi sdue, h es hal lappl yi tt ot h epr i
nc ipal .Unl ess Art.21 17. Anyt h irdper sonwh oh asanyr ighti nort ot het hingpl edg ed
ther ei sas tipul at iont ot h ec ont rar y, thepl edg es h al lex t endt ot h e mays at isfyt h epr incipalobl ig at ionass oonast hel at t
erbec omesdue
inter es tandear ni ng soft her ig htpl edg ed. anddemandabl e.(n)
Inc as eofapl edg eofani mal s ,thei rof fspr ings h allper tai nt ot he Art.21 18. Ifac redi twh ichh asbeenpl edg edbec omesduebef or eiti s
pledg ororownerofani mal spl edg ed, buts h al lbes ubj ec tt ot hepl edg e, redeemed, th epl edg eemayc ollec tandr ec eivet heamountdue. He
ifth er ei snos t ipul at iont ot hec ont rar y.(1 86 8a) shal lappl yt hes amet ot hepay mentofh isc lai m, anddel i
v ert h e
Art .21 03. Unl es st het hingpl edg edi sex pr opr iat ed, thedebt or surpl us , shoul dt her ebeany ,tot h epl edg or .(n)
cont inuest obet h eownert h er eof . Art.21 19. Ift woormor et hing sar epl edg ed, t hepl edg eemayc hoos e
Nev er th el es s, thec redi tormaybr i
ngt heac tionswh ic hper tai nt ot he whic hh ewi llc aus et obes old, unl es st herei sas tipul at iont ot he
owneroft h et hingpl edg edi nor dert or ec ov eri tf rom, ordef endi t cont rar y. Hemaydemandt h es al eofonl yasmanyoft het h ing sasar e
ag ains tat h irdper son. (186 9) nec es s aryf ort h epay mentoft h edebt .(
n)
Art .21 04. Th ec redi torc annotus et het h ingpl edg ed, wi thoutt he Art.21 20. Ifat hirdpar tys ec ur esanobl i
g at ionbypl edg ingh isown
aut hor it yoft heowner , andi fh es h oul ddos o, ors h oul dmi sus et h e mov abl epr oper t
yundert hepr ov isionsofAr ticle2085h es h al lhav et he
thingi nanyot herway , th eownermayas kt hati tbej udi cial lyor samer ig htsasag uar ant orunderAr ticles206 6t o2070, andAr ti
c l
es
ext raj udi c ial lydepos ited. Wh ent hepr es er vat i onoft h et hingpl edg ed 2077t o2081 .Hei snotpr ej udi cedbyanywai verofdef ens ebyt he
requi r esi tsus e, itmus tbeus edbyt h ec r edi t orbutonl yf ort h at princ ipalobl ig or. (n)
pur pos e. ( 1870a) Art.21 21 .Pl edg esc r
eat edbyoper ationofl aw, suc hast hos er efer r
ed
Art .21 05 . Th edebt orc annotas kf ort her et ur noft h et hingpl edg ed toinAr ticles5 46, 1731 ,and1 994, areg over nedbyt h ef or eg oi ngar ticles
ag ains tt hewi lloft hec redi tor ,unl es sandunt ilh eh aspai dt hedebt ont h epos ses s ion, car eands aleoft het hingaswel lasont he
andi tsi nt er es t, wi thex pens esi napr operc as e. (1871 ) termi nat ionoft hepl edg e. Howev er,af terpay mentoft hedebtand
Art .21 06 . Ift hr oug ht h eneg lig enc eorwi lfulac toft hepl edg ee, the expens es ,th er emai nderoft hepr iceoft hes ales hal lbedel iver edt o
thingpl edg edi si ndang erofbei ngl os tori mpai red, th epl edg ormay theobl igor .(n)
requi r et hati tbedepos it
edwi that h irdper s on. (n) Art.21 22. At hingunderapl edg ebyoper ationofl awmaybes ol donl y
Art .21 07. Ift h er ear er eas onabl eg roundst of eart h edes tr uc tionor afterdemandoft heamountf orwh i
cht het hingi sret ained. Th epubl i
c
impai rmentoft h et hingpl edg ed, wi th outt h ef aul toft h epl edg ee, the auc tions h al ltakepl ac ewi thinonemont haf ters uc hdemand. If,
pledg ormaydemandt her et ur noft h et h ing , uponof fer i
nganot her withoutj us tg rounds , thec redi tordoesnotc aus et h epubl ics alet obe
thingi npl edg e, pr ov idedt hel atteri soft h es ameki ndast h ef ormer heldwi thins uc hper iod, thedebt ormayr equi ret her etur noft het hing.
andnotofi nf er iorqual ity, andwi th outpr ej udi c et ot h er ig htoft h e (n)
pledg eeundert hepr ov isionsoft hef ol lowi ngar ticle. Art.21 23. Wi thr eg ardt opawns h opsandot h eres tabl ishment s ,wh i
ch
Thepl edg eei sboundt oadv is et hepl edg or ,wi t houtdel ay ,ofany areeng ag edi nmaki ngl oanss ec ur edbypl edg es , t
h es pec iall awsand
dang ert ot het h ingpl edg ed. (n) regul at ionsc onc er ningt h ems hal lbeobs erv ed, ands ubs idi ar i
ly, t
he
Art .21 08. If, wi thoutt h ef aul toft hepl edg ee, th erei sdang erof prov isionsoft h isTi tle.(1873a)  
des tr uc tion, impai r ment , ordi mi nut ioni nv al ueoft h et hingpl edg ed, h
e  
mayc aus et h es amet obes oldatapubl i cs al e. Thepr oc eedsoft he CHAPTER3
auc tions h al lbeas ec ur ityf ort hepr inc ipalobl igat ioni nt h es ame MORTGAGE
mannerast h et h ingor iginal lypl edg ed. ( n)
Art .21 09. Ift h ec redi t ori sdec ei vedont h es ubs tanc eorqual ityoft he Art .2124. Onl yt hef oll
owi ngpr oper tymaybet h eobj ec tofac ont ractof
thingpl edg ed, h emayei th erc laimanot h ert h ingi ni tss tead, or mor tgag e:
demandi mmedi at epay mentoft h epr inc ipalobl igat ion. (n) (1)I mmov ables ;
Art .21 10. Ift het h ingpl edg edi sr et ur nedbyt h epl edg eet ot h epl edg or (2)Al ienabl er ealr ightsi nac cor danc ewi tht h el aws ,impos edupon
orowner ,th epl edg ei sex ting ui shed. Anys tipul at iont ot hec ont rar y immov ables .
shal lbev oid. Nev erthel ess ,mov ablesmaybet heobj ec tofac h attelmor t
g ag e.
Ifs ubs eq uentt ot h eper fec tionoft hepl edg e, th et h ingi si nt he (1874a)
pos s es s ionoft hepl edg ororowner ,th er ei sapr imaf ac iepr es umpt i
on Art .2125 .Inaddi tiontot h erequi si
t ess tat edi nAr ticle2085 , itis
thatt hes ameh asbeenr et ur nedbyt hepl edg ee. Th iss ame indis pens abl e,inor dert h atamor tg agemaybev alidlyc onstitut ed,
pres umpt ionex is tsi ft h et h ingpl edg edi si nt h epos s es sionofat hird thatt hedoc umenti nwh ichi tappear sber ec ordedi nt heReg istryof
per sonwh oh asr ec ei vedi tf romt hepl edg ororowneraf tert he Proper ty.Ift hei nstrumenti snotr ec orded, t hemor t
g agei s
cons titut ionoft h epl edg e. (n) nev er theles sbindi ngbet weent h epar ties .
Art .21 11 .As tat ementi nwr itingbyt h epl edg eet hath er enounc esor Theper sonsi nwh osef av orth el awes tabl ish esamor tgageh av eno
abandonst hepl edg ei ss uf fic i
entt oex ting ui s ht h epl edg e. Fort his oth err ightt hant odemandt heex ec utionandt h er ecordingoft h e
pur pos e, nei th ert heac cept anc ebyt hepl edg ororowner , nort h er eturn doc umenti nwh ic hthemor t
gag ei sf or mal ized. (1 875 a)
oft h et h ingpl edg edi snec es s ar y,th epl edg eebec omi ngadepos it ary. Art .2126 .Themor tgagedi rectlyandi mmedi atel ys ubjec t
st hepr oper t
y
(n) uponwh ichi tisi mpos ed, wh oev ert h epos ses s ormaybe, tot he
Art .21 12. Th ec redi tort owh omt h ec r edi th asnotbeens at is fiedi ndue fulfillmentoft heobl i
gat ionforwh os es ec urityi twasc ons ti
tut ed. (1876)
time, maypr oc eedbef or eaNot ar yPubl i ct ot h es al eoft h et hing Art .2127. Th emor t
gageex tendst ot h enat uralac ces sions, t
ot he
pledg ed. Th iss al es h allbemadeatapubl icauc tion, andwi th impr ov ement s,g rowingf ruits,andt her ent sori nc omenoty etr ec eived
not ificat i
ont ot hedebt orandt heowneroft h et hingpl edg edi na wh ent heobl igat ionbec omesdue, andt ot heamountoft hei ndemni ty
properc as e, st at ingt heamountf orwh i
c ht h epubl ics alei st obeh eld. grant edorowi ngt othepr opriet orf romt hei ns ur ersoft hepr oper t
y
Ifatt h ef irstauc t iont het hingi snots old, as ec ondonewi tht h es ame mor tgag ed,ori nv i
rtueofex pr opr iat i
onf orpubl icus e,witht he
formal itiess hal lbeh eld; andi fatt h es ec ondauc tiont her ei snos ale dec lar ations ,ampl i
ficationsandl imi tationses tabl i
s hedbyl aw,
eith er ,th ec redi tormayappr opr iatet h et h ingpl edg ed. Int h isc as eh e wh et hert hees tat er emai nsi nt hepos s ess ionoft hemor tgagor ,ori t
shal lbeobl igedt og iveanac qui ttanc ef orh isent irec lai m. ( 1872a) pas s esi ntot heh andsofat hi
rdper son. (1877)
Art .21 13. Att hepubl icauc tion, thepl edg ororownermaybi d. Hes h all
, Art .2128. Th emor t
gagec reditmaybeal ienat edoras signedt oat h
ird
mor eov er ,h av eabet terr igh ti fh es h oul dof fert h es amet er msast he per son, inwh oleori npar t,witht h ef ormal itiesr equi redbyl aw. (1878)
high es tbi dder . Art .2129. Th ec redi t
ormayc laimf romat h irdper soni npos ses sionof
Thepl edg eemayal sobi d, buth isof f ers hal lnotbev al idi fh ei st he themor tgag edpr operty, thepay mentoft h epar toft hec redits ec ured
onl ybi dder .( n) byt h epr oper tywh ic
hs aidt hirdper s onpos ses ses ,int hetermsandwi th
Art .21 14. Al lbi dsatt h epubl icauc t ions h al lof fert opayt hepur ch ase thef or mal itieswh ic
ht hel awes tabl ishes .( 1879 )
pric eatonc e. Ifanyot herbi di sac cept ed, th epl edg eei sdeemedt o Art .2130. As ti
pul ationf orbiddi ngt h eownerf romal ienat i
ngt he
immov ablemor t
gagedshallbevoid.(n) Int h ef irstc as e, thepr ov isionsofAr ti
c les1 31 7, 1403, No. 1 ,and1 404
Art.2131.Theform,ex
tentandc onsequenc esofamor tgag
e, bot
hast
o reg ar di ngunaut h or iz edc ont rac t ss hal lg ov er n.
it
sc onstit
ution,
modifi
cationandex ti
ng uis
hment,andast oother Int h es econdc as e, th er ul esonag enc yi nTi tl eXoft hisBooks hal lbe
mat tersnotincl
udedinthi
sCh apter,shallbegovernedbyt h
e appl icabl e. (1 888a)
provisi
onsoft heMortgageLawandoft h eLandReg i
str
ationLaw. Ar t.21 45 .Th eof fic iousmanag ers hal lper for mh isdut ieswi thal lth e
(1880a)  dilig enc eofag oodf at h erofaf ami ly,andpayt hedamag eswh i
c h
  thr oug hh isf aul torneg lig enc emaybes uf fer edbyt heowneroft he
CHAPTER4 pr oper tyorbus ines sundermanag ement .
ANTI CHRESI S Th ec our tsmay , howev er , inc reas eormoder at et h ei ndemni tyac cor di
ng
tot hec ircums tanc esofeac hc as e. (1889a)
Art.2132. Byt hec ont rac tofant ich resist hec r
edi torac qui rest heright Ar t.21 46 .Ift h eof ficiousmanag erdel eg at est oanot herper sonal lor
torec eiv et hef ruit sofani mmov abl eofh isdebt or ,wi tht heobl i
gation someofh isdut i
es ,h es h al lbel iabl efort h eac tsoft hedel eg at e,
toappl yt hemt ot hepay mentoft h ei nter es t
,ifowi ng , andt hereaftert o wi thoutpr ejudi cet ot h edi rec tobl igat i
onoft hel at tert owar dt he
thepr inc ipalofh isc redi t.(1 881) owneroft hebus ines s .
Art.2133. Theac tualmar ketv alueoft h ef ruitsatt het imeoft he Th er es pons i
bi lityoft woormor eof fi
c iousmanag erss hal lbes ol i
dar y,
applicat iont h ereoft ot hei nt eres tandpr inc i
pals h allbet hemeas ure unl es st hemanag ementwasas sumedt os av et h et hingorbus i
nes s
ofsuc happl i
cat ion. ( n) fromi mmi nentdang er . (1 890a)
Art.2134. Theamountoft hepr inc ipalandoft hei nt er es tsh allbe Ar t.21 47. Th eof fic iousmanag ers h allbel i
abl ef oranyf or tui tousev ent:
spec i
fiedi nwr iting ;ot h erwi se, thec ont r
ac tofant ich res iss hallbev oid. (1)I fh eunder t
akesr is kyoper at ionswh icht heownerwasnot
(n) ac cus tomedt oembar kupon;
Art.2135 . Thec redi tor ,unl es sth er ei sas tipulationt ot hec ontrary,i
s (2)I fh eh aspr ef er redh isowni nt er estt ot hatoft h eowner ;
obligedt opayt het ax esandc harg esupont hees tate. (3)I fh ef ai lst or et ur nt h epr oper t yorbus ines saf terdemandbyt h e
Hei sal s oboundt obeart heex pens esnec es sar yf ori tspr eservation owner ;
andr epai r. (4)I fh eas sumedt hemanag ementi nbadf ai th.( 1891 a)
Thes umss pentf ort hepur pos ess tatedi nt hi
sar ticles hal lbe Ar t.21 48. Ex c eptwh ent hemanag ementwasas sumedt os av epr oper t
y
deduc tedf romt hef rui ts.(1882) orbus ines sf r omi mmi nentdang er ,th eof ficiousmanag ers h allbe
Art.2136 . Thedebt orc annotr eac qui ret heenj oy mentoft hei mmov able liabl ef orf or tuitousev ent s :
withoutf irsthav ingt ot allypai dwh ath eowest hec redi tor . (1)I fh ei smani fes t lyunf itt oc ar ryont h emanag ement ;
Butt hel at ter, i
nor dert oex empth ims elff romt heobl igationsi mpos ed (2)I fbyh isi nt er vent ionh epr ev ent edamor ec ompet entper s onf r om
uponh imbyt h epr ec edi ngar ticle, mayal way sc ompelt hedebt orto taki ngupt hemanag ement .(n)
enterag ai nupont heenj oy mentoft hepr oper ty,ex c eptwh ent hereisa Ar t.21 49. Th er at i
f i
c at ionoft h emanag ementbyt h eowneroft h
e
sti
pul at iont ot hec ont rar y.(1 883) bus i
nes spr oduc est h eef f ec tsofanex pr es sag enc y, ev eni ft he
Art.2137. Thec redi tordoesnotac qui ret h eowner s hipoft her eal bus i
nes smaynoth av ebeens uc ces sful .(1 892a)
estatef ornon- pay mentoft h edebtwi thint heper iodag reedupon. Ar t.21 5 0.Al th oug ht heof fic iousmanag ementmaynoth av ebeen
Everys tipul ationt ot hec ontr arys h allbev oid. Butt hec redi tormay ex pr es s l
yr at ified, theowneroft hepr oper tyorbus i
nes swh oenj oy sthe
petiti
ont hec our tf ort hepay mentoft hedebtort hes al eoft hereal adv ant ag esoft h es ames h al lbel iabl ef orobl ig ationsi nc urr edi nh i
s
proper ty .Inth isc as e, th eRul esofCour tont hef or ec los ureof inter es t,ands hal lr ei mbur set heof fi
c i
ousmanag erf ort henec es s ary
mor tgag ess h
al lappl y.( 1884a) andus efulex pens esandf ort hedamag eswh icht h el at termayh ave
Art.2138. Thec ont rac tingpar ti
esmays t
ipul atet h att h ei nt erestupon suf fer edi nt h eper f or manc eofh isdut ies .
thedebtbec ompens at edwi t hthef ruitsoft hepr oper tywh ichisthe Th es ameobl igat ions hal lbei nc umbentuponh imwh ent h e
objectoft heant i
c hr es is,pr ov i
dedt hati fth ev alueoft hef ruitsshould manag ementh adf ori tspur pos et hepr ev ent ionofani mmi nentand
exceedt heamountofi nt eres tal lowedbyt hel awsag ai ns tus ury,t
h e mani f es tlos s ,al thoug hnobenef itmayh av ebeender iv ed. (1893)
exces ss h allbeappl iedt ot hepr inc i
pal .(1885 a) Ar t.21 5 1.Ev ent houg ht heownerdi dnotder iveanybenef itandt her e
Art.2139. Thel as tpar ag r
aphofAr ticle2085 ,andAr tic les2089t o2091 hasbeennoi mmi nentandmani f es tdang ert ot hepr oper t yorbus ines s,
areappl ic ablet ot hisc ontrac t
.( 1886 a)   theowneri sl iabl easundert h ef irs tpar ag raphoft hepr ec edi ngar ticl
e,
  pr ov ided:
CHAPTER5 (1)Th eof fic iousmanag erh asac tedi ng oodf ai th, and
CHATTELMORTGAGE (2)Th epr oper tyorbus i
nes si si ntac t, readyt ober et ur nedt ot he
owner .(n)
Art.2140.Byac hat
telmor tgage,personalpropertyisrecordedinthe Ar t.21 5 2.Th eof fic iousmanag eri sper sonal lyl iabl ef orc ont rac tswh i
ch
ChattelMor tgag eReg i
sterasas ec
urityfortheperformanc eofan heh asent er edi ntowi tht h irdper sons , ev ent houg hh eac tedi nt h e
obli
g ation. I
ft h
emov abl
e, ins
teadofbei ngrecorded, i
sdeliver
edto nameoft h eowner ,andt h eres h allbenor igh tofac tionbet weent he
thec reditororat h
irdper son,thecontractisapledgeandnota ownerandt hir dper s ons . Th es epr ov isionss hal lnotappl y :
chattelmor tgage.(n) (1)I ft heownerh asex pr es slyort ac itlyr at ifiedt hemanag ement , or
Art.2141 .
Th epr ovi
s i
onsoft hisCodeonpl edge,insofarastheyarenot (2)Wh ent h ec ont r ac tr ef er st ot h ing sper tai ningt ot h eowneroft h e
inconf l
ictwi ththeCh attelMor t
gageLaws hal
lbeappl icabletoch
attel bus i
nes s.( n)
mort gages .(n)  Ar t.21 5 3.Th emanag ementi sex ting uish ed:
  (1)Wh ent heownerr epudi at esi torput sanendt her et o;
Tit
leXVI I
. -EXTRA- CONTRACTUALOBLI GATIONS (2)Wh ent h eof f
i ciousmanag erwi thdrawsf r omt h emanag ement ,
  subj ec ttot hepr ov is ionsofAr t
ic le21 44;
CHAPTER1 (3)Byt hedeat h, civ ili nt er dic tion, ins ani tyori ns olvenc yoft heowner
QUASI -
CONTRACTS ort heof ficiousmanag er .( n)
 
Art.2142.Cer tainlawf ul,
voluntaryandunilat
eralactsgiveris
et oth
e SECTI ON2. - Sol ut ioI ndebi ti
jur
idicalr elationofquas i
-contracttoth
eendt hatnoones hallbe
unjustlyenrichedorbenef i
tedatt heexpenseofanother.(n) Art.2154.Ifsomet hingi srec eivedwh enth ereisnor i
ghttodemandi t,
Art.2143.Th epr ovi
s ionsforquas i
-cont
ractsi
nthisChapterdonot andi twasundul ydel iveredt hroughmi st
ake, theobli
gationt or et
urni t
excludeot herquas i- cont
ractswh i
chmayc omewi t
hinthepurviewofthe arises.(1895)
precedi ngar t
icle.(n)   Art.2155.Pay mentbyr easonofami stakei ntheconstructi
onor
  appl i
cationofadoubt fulordi fficul
tques ti
onofl awmayc omewi thin
SECTION1 .
- Neg otiorumGes t
io thes copeoft hepr ecedi ngar ticle.(n)
Art.2156.Ifthepay erwasi ndoubtwh ethert hedebtwasdue, hemay
Art.2144.Whoevervoluntaril
yt akesc hargeoftheag enc yor recoverifh epr ov est hatitwasnotdue. (n)
manag ementoft hebus i
nes sorpr opertyofanoth er,withoutanypower Art.2157.Ther es pons ibili
tyoft woormor epay ees,whent hereh asbeen
fromth elat
ter,isobli
gedt oc ontinuet h
es ameunt ilthet erminati
onof paymentofwh ati snotdue, i
ss olidar y.
(n)
theaffairanditsinci
dent s
, ortor equirethepersonc oncernedt o Art.2158.Wh ent hepr opert ydel iv
eredormoneypai dbelong st oat hir
d
substi
t ut
ehim,iftheowneri sinapos i
ti
ont odos o.Th i
sj uri
dical person, t
h epay ees hallcompl ywi t
ht hepr ovis
ionsofar t
icle1 984.(n)
relati
ondoesnotar iseinei theroft heseinstances: Art.2159.Wh oev erinbadf ai thac cept sanunduepay ment,s h
al lpay
(1)Wh enthepropertyorbus inessi snotneg l
ectedorabandoned; legalinteresti fas umofmoneyi sinv olv
ed, orshallbeliablef orfruits
(2)Ifinfactthemanag erh asbeent acit
lyauthorizedbyt h eowner. receivedorwh ichs houl dh avebeenr eceivedifthethingproduc esf rui
ts.
Hes h allfurthermor ebeans wer ablef oranyl os sori mpai r
mentoft he damag est wi cef ort hes ameac toromi ss ionoft hedef endant .(n)
thingf r
omanyc aus e, andf ordamag est otheper sonwh odel i
veredt he Ar t.21 78. Th epr ov i sionsofAr tic les1 1 72t o1 174ar eal soappl icabl et o
thing ,unt i
litisr ec ov ered. (1896 a) aquas i-del ict. (n)
Art. 21 6
0. Hewh oi ng oodf aithac cept sanunduepay mentofat hi
ng Ar t.21 79. Wh ent hepl aint iff'sownneg lig enc ewast hei mmedi at eand
cer tainanddet ermi nates hallonl yber espons iblef ort hei mpai r
ment pr ox imat ec aus eofh isi njur y, hec annotr ec ov erdamag es .Buti fh is
orl os soft hes ameori tsac c essor i
esandac c ess i
onsi nsofarash eh as neg li
g enc ewasonl yc ont ribut or y, th ei mmedi at eandpr ox imat ec aus e
ther ebybeenbenef ited.Ifh eh asal i
enat edi t,h es hal lreturnthepr i
ce oft h ei nj ur ybei ngt h edef endant 'sl ac kofduec ar e, thepl ai nt i
ffmay
oras signt heac tiont oc ollec tthes um. (1897) rec ov erdamag es , butt h ec our tss h al lmi tigat et hedamag est obe
Art. 21 6
1 .Asr egar dst her eimbur sementf orimpr ovement sand awar ded. (n)
expens esi ncurredbyh i
mwh oundul yr eceivedt heth ing ,
thepr ovisions Ar t.21 80. Th eobl igat ioni mpos edbyAr ticl e21 76i sdemandabl enot
ofTi tleVofBookI Is hallg ov ern. (1
898) onl yf orone' sownac tsoromi ss ions ,butal s of ort h os eofper sonsf or
Art. 21 6
2. Hes h
al lbeex emptf romt heobl i
gationt or es t
orewh o, wh omonei sr es pons ible.
believ ingi ngoodf ai tht hatt hepay mentwasbei ngmadeofa Th ef at h erand, inc as eofh isdeat hori nc apac it y,th emot her ,ar e
legitimat eands ubs i
s ti
ngc lai m, des tr
oy edt hedoc ument ,oral l
owed res pons iblef ort hedamag esc aus edbyt hemi norc h ildr enwh ol ivei n
theac tiont opr esc ribe, org av eupt hepl edg es ,orc anc elledt he thei rc ompany .
guar ant iesforh isr ight.Hewh opai dundul ymaypr oc eedonl yag ainst Guar di ansar el iabl ef ordamag esc aus edbyt hemi nor sor
thet ruedebt orort heg uar ant orswi thr egardt owh omt heactioniss til
l inc apac itatedper s onswh oar eundert hei raut hor ityandl iv ei nt hei r
effec tive.(1899) company .
Art. 21 6
3. Itispr es umedt hatt her ewasami stakei nt h epay mentif Th eowner sandmanag er sofanes tabl i
s h mentorent er pr i
s ear e
somet hingwh ic
hh adnev erbeendueorh adal readybeenpai dwas likewi ser es pons iblef ordamag esc aus edbyt hei rempl oy eesi nt h e
del i
v ered; buth ef r omwh omt her eturni sclaimedmaypr ovet hatth e ser v i
c eoft hebr anc hesi nwh icht hel at terar eempl oy edoront h e
del i
v erywasmadeoutofl i
ber alityorf oranyot herj us tcause. (
1901 )  oc cas ionoft h eirf unc t i
ons .
  Empl oy er ss hal lbel iabl ef ort hedamag esc aus edbyt heirempl oy ees
SECTI ON3. -Ot herQuas i
-Cont rac ts andh ous eh ol dh el per sac t ingwi t hint hes c opeoft h eiras sig nedt as ks,
ev ent h oug ht hef or merar enoteng ag edi nanybus ines sori ndus try.
Ar t.216 4.Wh en, withoutt heknowl edg eoft heper sonobl igedt og iv e Th eSt at ei sr es pons iblei nl ikemannerwh eni tac tst h roug has pec ial
suppor t, i
ti sg ivenbyas trang er ,th el at ters hallh av ear ightt oc laim ag ent ; butnotwh ent h edamag eh asbeenc aus edbyt h eof f icialt o
thes amef romt hef or mer , unl es si tappear st hath eg av ei toutofpi ety wh omt h et as kdonepr oper lyper t ai ns ,inwh ic hc as ewh ati spr ov idedi n
andwi t
h outi nt entionofbei ngr epai d. (1894a) Ar ticle21 76s h allbeappl ic abl e.
Ar t.216 5.Wh enf uner alex pens esar ebor nebyat h irdper son, wi t
h out Las tly,t eac h er sorh eadsofes t abl is h ment sofar tsandt radess h allbe
theknowl edg eoft hos er elat iveswh ower eobl i
g edt og ives uppor tto liabl ef ordamag esc aus edbyt hei rpupi lsands tudent sorappr ent ic es,
thedec eas ed, s aidr elat i
v ess hal lr eimbur set het hirdper son, sh ould sol ongast h eyr emai ni nt h ei rc us tody .
thel at terc lai mr ei mbur s ement .(1 894a) Th er es pons ibi lityt reat edofi nt h isar tic les hal lc eas ewh ent h e
Ar t.216 6.Wh ent heper sonobl ig edt os uppor tanor ph an, orani ns ane per s onsh erei nment ionedpr ov et hatt heyobs er vedal lt hedi l
ig enc eof
orot heri ndi gentper s onunj us tlyr ef us est og iv
es uppor ttot hel at ter, ag oodf at herofaf ami lyt opr ev entdamag e. (1 903a)
anyt hirdper sonmayf ur ni shs uppor tt ot heneedyi ndi vidual , withr ight Ar t.21 81 . Wh oev erpay sf ort hedamag ec aus edbyh isdependent sor
ofr ei mbur s ementf romt heper s onobl igedt og iv es uppor t.Th e empl oy eesmayr ec ov erf romt hel at t erwh ath eh aspai dordel i
v er edi n
prov isionsoft hisar t i
c leappl ywh ent hef ath erormot herofac hild sat isf ac tionoft hec lai m. ( 1904)
underei ghteeny ear sofag eunj us tlyr ef us est os uppor th i
m. Ar t.21 82. Ift hemi norori ns aneper s onc aus ingdamag eh asnopar ent s
Ar t.216 7.Wh ent h r
oug hanac c i
dentorot h erc aus eaper soni si njured org uar dian, th emi norori ns aneper s ons h al lbeans wer abl ewi thh i
s
orbec omess erious lyi ll,andh ei st reat edorh el pedwh i
leh ei snoti na ownpr oper tyi nanac tionag ai ns th imwh er eag uar di anadl items hal l
condi t
iont og ivec ons entt oac ont rac t,h es hallbel iabl et opayf ort he beappoi nted. (n)
ser vicesoft heph ysicianorot herper s onai dingh im, unl esst hes ervice Ar t.21 83. Th epos s es s orofanani malorwh oev ermaymakeus eoft he
hasbeenr ender edoutofpur eg ener os i
t y. samei sr es pons ibl ef ort hedamag ewh ic hi tmayc aus e, al thoug hi tmay
Ar t.216 8.Wh endur ingaf ire, flood, stor m, orot h erc al ami ty,pr oper tyis es capeorbel os t. Th isr es pons ibi l
it ys h al lc eas eonl yi nc as et h e
sav edf romdes truc tionbyanot h erper sonwi thoutt h eknowl edg eoft h
e damag es houl dc omef romf orc emaj eur eorf romt hef aul toft h e
owner ,th elat teri sboundt opayt hef ormerj us tc ompens ation. per s onwh oh ass uf fer eddamag e. (1 905 )
Ar t.216 9.Wh ent heg ov er nment ,upont hef ailureofanyper sont o Ar t.21 84. Inmot orv eh iclemi sh aps , th eowneri ss ol idar ilyl iabl ewi th
compl ywi thh eal thors af et yr eg ul ationsc onc erni ngpr oper t y, hisdr iv er ,ift hef or mer , wh owasi nt h ev eh ic le, coul dh av e, byt h eus e
under takest odot henec es s ar ywor k, ev enov erh isobj ection, hes h
al l oft h eduedi ligenc e, pr ev ent edt h emi sf or tune. Iti sdi s put abl y
bel iabl et opayt heex pens es . pr es umedt h atadr iverwasneg ligent ,ifh eh adbeenf oundg uiltyor
Ar t.2170. Wh enbyac c i
dentorot herf or t
ui tousev ent ,mov abl es rec kl es sdr ivingorv iol at i
ngt raf ficr eg ul at ionsatl eas tt wi cewi th int he
separ atel yper tainingt ot woormor eper s onsar ec ommi ngledor nex tpr ec edi ngt womont h s.
conf us ed, ther ulesonc o- owner s hips hal lbeappl icabl e. Ift heownerwasnoti nt h emot orv eh ic l
e, th epr ov isionsofAr ticle21 80
Ar t.2171 .Th er igh t
sandobl ig ationsoft hef inderofl os tper s onal ar eappl i
c abl e. (n)
proper tys hal lbeg ov er nedbyAr ticles71 9and720. Ar t.21 85 .Unl es st h erei spr ooft ot h ec ont rar y,iti spr es umedt hata
Ar t.2172. Th er ig htofev er ypos s es sori ng oodf ai tht or eimbur sement per s ondr ivingamot orv eh icleh asbeenneg lig enti fatt het imeoft he
fornec es sar yandus ef ulex pens esi sg ov er nedbyAr ticle5 46 . mi sh ap, h ewasv iol at inganyt raf ficr eg ul at ion. (n)
Ar t.2173. Wh enat h i
rdper son, with outt heknowl edg eoft hedebt or , Ar t.21 86 .Ever yownerofamot orv eh icles h al lfilewi tht hepr oper
pay st hedebt ,th er i
g htsoft h ef or merar eg ov er nedbyAr tic les1 236 gov er nmentof fic eabondex ec ut edbyag ov er nment -cont rolled
and1 237. cor por at ionorof fic e, toans werf ordamag est ot hir dper sons .Th e
Ar t.2174. Wh eni nas mal lc ommuni tyanat ional ityoft hei nhabi tantsof amountoft h ebondandot hert er mss h al lbef ixedbyt hec ompet ent
ag edec ideuponameas ur ef orpr ot ec tionag ains tl awl es snes s,fire, publ i
cof ficial .(n)
flood, stormorot herc al ami ty ,anyonewh oobj ec t st ot hepl anand Ar t.21 87. Manuf ac tur er sandpr oc es sor soff oods tuf fs ,dr inks , t
oi let
refus est oc ont ribut et ot heex pens esbuti sbenef itedbyt hepr oj ectas ar ticlesands imi larg oodss hal lbel iabl ef ordeat hori njur iesc aus ed
ex ec uteds hal lbel i
abl et opayh iss h ar eofs aidex pens es . byanynox i
ousorh ar mf uls ubs t anc esus ed, al th oug hnoc ont rac tual
Ar t.2175 .Anyper sonwh oi sc ons trai nedt opayt het ax esofanot h er rel ationex i
s tsbet weent hemandt h ec ons umer s .(n)
shal lbeent itledt or ei mbur sementf r omt h el atter .  Ar t.21 88. Th er ei spr i
maf ac iepr es umpt ionofneg ligenc eont h epar tof
  thedef endanti ft hedeat hori njur yr es ul tsf romh ispos ses sionof
CHAPTER2 dang er ousweaponsors ubs tanc es ,s uc hasf irear msandpoi s on, ex c ept
QUASI -DELI CTS wh ent h epos s es sionorus et her eofi si ndi s pens ablei nh i
soc c upat ion
orbus ines s.( n)
Art.2176.
Wh oev erbyac toromi ssionc ausesdamag etoanot her
,there Ar t.21 89. Pr ov inc es , citiesandmuni cipal itiess h allbel iabl ef or
beingfaultorneg li
genc e, i
sobl i
gedt opayf orthedamag edone. Such damag esf ort hedeat hof , ori nj ur iess uf fer edby ,anyper s onbyr eas on
faultornegligenc e,ifther eisnopr e-exist
ingcontractualrelati
on oft h edef ec tiv ec ondi tionofr oads , st reet s, bridg es , publ icbui ldi ng s ,
betweent hepar ties,isc alledaquas i-deli
ctandi sgovernedbyt he andot h erpubl icwor ksundert h eirc ont rolors uper vision. ( n)
provisi
onsoft hisCh apter .(1902a) Ar t.21 90. Th epr opr iet orofabui ldi ngors truc tur ei sr es pons iblef or
Art.2177.
Res pons ibi
lityf orfaultorneg li
genceundert hepr eceding thedamag esr es ul tingf romi tst ot alorpar tialc ollaps e, ifi ts houl dbe
arti
c l
eisentirel ysepar at eanddi st
inctfromt h
ec ivi
lliabi
lityarisi
ng duet ot h el ac kofnec es sar yr epai r s. (1907)
fromneg l
igenc eundert hePenalCode. Buttheplainti
ffcannotr ecover Ar t.21 91 . Propr iet or ss hal lal sober es pons ibl ef ordamag esc aus ed:
(1)Byt heex plosi
onofmac hi
ner ywh i
chh asnotbeent akenc areofwi th suc hi ndemni tys hal li nev er yc as ebeas s es sedandawar dedbyt he
duedi lig
enc e,andt h einflammat ionofex plos i
ves ubst
anceswh ich cour t, unl es st hedec eas edonac c ountofper manentph y sicaldi sabi li
ty
havenotbeenkepti nas af eandadequat epl ace; notc aus edbyt h edef endant ,h adnoear ningc apac ityatt het imeofh is
(2)Byex cessivesmoke, wh i
chmaybeh ar mfultoper sonsorpr operty; deat h ;
(3)Byt hef all
ingoft r
eess i
tuatedatornearh ighwaysorlanes, i
fnot (2)I ft h edec eas edwasobl ig edt og ives uppor tac cor di ngt ot he
causedbyf orcemaj eure; prov isionsofAr tic le291 , ther ec ipientwh oi snotanh eirc alledt ot he
(4)Byemanat i
onsf romt ubes ,canal s,sewer sordepos itsofinfecti
ous dec edent 'si nh er itanc ebyt hel awoft es tat eori nt es tat es ucc es si on,
mat ter ,construct
edwi thoutpr ecaut i
onss ui
tablet otheplace.(1908) maydemands uppor tf romt heper s onc aus ingt hedeat h ,foraper iod
Art.21 92.Ifdamag er eferredt oint hetwopr ecedingarticl
ess houldbe notex c eedi ngf iv ey ear s, theex ac tdur at iont obef ix edbyt hec our t;
theres ultofanydef ectint hec ons t
ructionment i
onedi nArti
cle1 723, (3)Th es pous e, leg i
timat eandi lleg i
t imat edes c endant sand
theth irdper sons ufferingdamag esmaypr oceedonl yag ai
nstthe asc endant soft hedec eas edmaydemandmor aldamag esf orment al
engineerorar chi
tec torc ontrac t
ori nac cordanc ewithsaidarticl
e, ang uis hbyr eas onoft h edeat hoft hedec eas ed.
withint heper iodth ereinfixed. (1909) Art .2207. Ift hepl aint iff'
spr oper t yh asbeeni ns ur ed, andh eh as
Art.21 93.Th eheadofaf ami l
yt hatlivesi nabui ldingorapar tthereof, rec eivedi ndemni tyf romt h ei ns ur anc ec ompanyf ort hei nj uryorl os s
isres pons iblefordamag esc aus edbyt h i
ng sthrownorf all
ingfromt h
e aris i
ngoutoft h ewr ongorbr eac hofc ont rac tc ompl ai nedof , the
same. (1910) insur anc ec ompanys hal lbes ubr og at edt ot h er i
g htsoft h ei ns ured
Art.21 94.Th erespons ibil
ityoft woormor eper sonswh oareliablef or agai ns tt h ewr ong doerort heper s onwh oh asv i
ol at edt h ec ontr ac t. If
quas i-
del ictissolidar y
.(n)   theamountpai dbyt h ei ns ur anc ec ompanydoesnotf ul lyc ov ert h e
  injuryorl os s ,t heag gr ievedpar tys hal lbeent itledt or ec ov ert he
Titl
eXVI I
I.-DAMAGES def icienc yf romt heper sonc aus ingt h el os sori nj ury .
  Art .2208. Int h eabs enc eofs tipul at ion, at tor ney 'sf eesandex pens es
CHAPTER1 ofl itigat ion, ot h ert h anj udi cialc os ts ,c annotber ec ov er ed, ex cept :
GENERALPROVI SIONS (1)Wh enex empl ar ydamag esar eawar ded;
(2)Wh ent h edef endant 'sac toromi s sionh asc ompel ledt h epl ai nt iffto
Art.2195 .Theprov is
ionsoft h
isTit
les hallber espec t
ivelyappl
icabl
eto lit
ig atewi tht h irdper s onsort oi nc urex pens est opr ot ec th isint er es t
;
allobligat i
onsment i
onedi nArt
icle1 157. (3)I nc rimi nalc as esofmal iciouspr os ec ut ionag ains tth epl aint iff ;
Art.2196 .Therulesundert hisTi
tlear ewi thoutprejudicetospecial (4)I nc as eofac l
ear lyunf oundedc iv ilac tionorpr oc eedi ngag ai ns t
provisionsondamag esf ormulatedel sewh ereinthisCode. thepl ai nt i
f f;
Compens at
ionf orwor kmenandot herempl oyeesinc aseofdeath, (5)Wh er et h edef endantac tedi ng ros sandev i
dentbadf ai thi n
inj
uryori ll
nessi sregulatedbys pec i
all aws .
Rulesg overni
ngdamag es refus ingt os at is fyt hepl ai nt iff'spl ai nl yv al id, jus tanddemandabl e
laiddowni notherl awss hallbeobs ervedi nsofarast heyarenotin claim;
confli
c twi t
hth i
sCode. (6)I nac tionsf orl eg als uppor t;
Art.2197. Damag esmaybe: (7)I nac tionsf ort her ecov er yofwag esofh ous eh ol dh elper s,labor ers
(1)Ac tualorc ompens atory; ands ki lledwor ker s;
(2)Mor al; (8)I nac tionsf ori ndemni tyunderwor kmen' sc ompens ationand
(3)Nomi nal; empl oy er 'sl iabi lityl aws ;
(4)Temper ateormoder ate; (9)I nas epar at ec ivilac tiont or ec ov erc ivill iabi lityar isingf roma
(5)Liqui dated;or crime;
(6)Exempl aryorc orrectiv
e. (10)Wh enatl eas tdoubl ej udi cialc os t sar eawar ded;
Art.2198. Thepri nci
plesoft hegener allawondamag esar eher
eby (11)I nanyot herc as ewh er et h ec our tdeemsi tj us tandequi tabl et hat
adopt edi nsofarast heyar enotincons istentwiththisCode.  attor ney '
sf eesandex pens esofl itig at ions h oul dber ec ov ered.
  Inal lc as es ,t heat tor ney 'sf eesandex pens esofl itig at ionmus tbe
CHAPTER2 reas onabl e.
ACTUALORCOMPENSATORYDAMAGES Art .2209. Ift heobl igat ionc ons istsi nt h epay mentofas umofmoney ,
andt hedebt ori nc ur si ndel ay ,thei ndemni tyf ordamag es , ther ebei ng
Art.21 99. Ex c eptaspr ov idedbyl aworbys ti pul ation, onei sent it
ledt o nos tipul at iont ot h ec ont rar y, shal lbet h epay mentoft hei nter es t
anadequat ec ompens at iononl yf ors uc hpec uni aryl osss uf fer edbyh i
m agr eedupon, andi nt h eabs enc eofs tipul at ion, thel eg ali nteres t,
ash eh asdul ypr ov ed. Suc hc ompens at i
oni sr efer redt oasac tualor wh ichi ss ixperc entperannum. (1 108)
compens at or ydamag es . Art .221 0. Int er es tmay ,int h edi scr et ionoft hec our t, beal lowedupon
Art.2200. Indemni fic at ionf ordamag ess hal lc ompr ehendnotonl yt h e damag esawar dedf orbr eac hofc ont rac t.
valueoft hel os ss uf fer ed, butal sot hatoft h epr of i
tswh i
c hth eobl igee Art .221 1 .Inc rimesandquas i-
del ic ts ,int er es tasapar toft hedamag es
fail
edt oobt ai n. (11 06 ) may ,inapr operc as e, beadj udi cat edi nt h edi sc ret ionoft hec our t.
Art.2201 .Inc ont r ac tsandquas i-
c ont r ac ts,t hedamag esf orwh icht he Art .221 2. Int er es tdues hallear nl eg ali nt er es tf romt h et imei ti s
obligorwh oac tedi ng oodf aithi sl iabl es hal lbet hos et hatar et he judi cial lydemanded, al th oug ht heobl ig at ionmaybes ilentupont h is
naturalandpr obabl ec ons equenc esoft hebr eac hoft heobl i
g at i
on, poi nt.( 11 09a)
andwh ic ht hepar tiesh av ef ores eenorc oul dh av er eas onabl yf ores een Art .221 3. Int er es tc annotber ec ov er eduponunl iqui dat edc laimsor
atth et imet heobl ig at ionwasc ons titut ed. damag es , ex c eptwh ent hedemandc anbees tabl is hedwi thr eas onabl y
Incas eoff raud, badf ai th,mal ic eorwant onat titude, theobl ig ors hall cer taint y.
ber es pons ibl ef oral ldamag eswh ichmayber eas onabl yat tribut edt o Art .221 4. Inquas i
-del i cts, thec ont r ibut or yneg ligenc eoft h epl ai nt iff
thenon- per for manc eoft heobl igat ion. ( 1107a) shal lr educ et h edamag est h ath emayr ec ov er .
Art.2202. Inc rimesandquas i-
del ic ts, thedef endants h allbel iabl ef or Art .221 5 .Inc ont rac ts ,quas i-c ont rac ts , andquas i -
del icts ,th ec our tmay
alldamag eswh ichar et h enat ur alandpr obabl ec ons equenc esoft he equi tabl ymi tig at et h edamag esunderc irc ums tanc esot hert hant h e
actoromi ss ionc ompl ai nedof . Iti snotnec es sar yt hats uc hdamag es cas er ef er r edt oi nt hepr ec edi ngar ticle, asi nt hef ol lowi ngi ns tanc es :
havebeenf or es eenorc ouldh av er eas onabl ybeenf ores eenbyt h e (1)Th att hepl ai nt iffh i ms el fh asc ont rav enedt het er msoft hec ont ract;
defendant . (2)Th att hepl ai ntiffh asder iveds omebenef itasar es ul toft h e
Art.2203. Th epar tys uf fer i
ngl os sori njur ymus tex er ci
s et hedi li
g enc e cont rac t;
ofag oodf ath erofaf ami l
yt omi ni mi z et hedamag esr es ultingf rom (3)I nc as eswh er eex empl ar ydamag esar et obeawar ded, thatt h e
theac toromi ss ioni nques ti
on. def endantac tedupont headv iceofc ouns el ;
Art.2204. Inc rimes ,t hedamag est obeadj udi cat edmaybe (4)Th att hel os swoul dh av er es ul tedi nanyev ent ;
respec t i
v elyi nc reas edorl essenedac cor di ngt ot heag grav atingor (5)Th ats inc et h ef ilingoft h eac tion, th edef endanth asdoneh i
sbes t
mitigat ingc irc ums tanc es . tol es sent hepl aint iff'sl os sori nj ur y.
Art.2205 .Damag esmayber ec ov ered:  
(1)Forl os sori mpai rmentofear ningc apac ityi nc asesoft empor ar yor CHAPTER3
permanentper s onali njur y
; OTHERKI NDSOFDAMAGES
(2)Fori njur yt ot h epl ai nti
f f
'sbus ines ss tandi ngorc ommer cialc redi t
.
Art.2206 .Th eamountofdamag esf ordeat hc aus edbyac ri
meorquas i- Art
.2216.Noproofofpec uni
aryl
ossisnecessaryi
nor dert hatmoral
,
delicts h allbeatl eas tt hreet h ous andpes os ,ev ent houg ht her emay nominal
,temperate,l
iquidat
edorex empl
arydamag es,maybe
havebeenmi tigat ingc ircums tanc es .Inaddi tion: adj
udicated.Th
eas s
es s
mentofs uchdamages,exceptliquidatedones,
(1)Th edef endants h al lbel i
abl ef ort hel os soft heear ningc apac ityof isl
efttothediscr
eti
onoft hecourt
,accor
dingtothec i
rc ums t
ancesof
thedec eas ed, andt hei ndemni tys hal lbepai dt ot h eh eirsoft h el atter; eachcase. 
  Art.2233. Ex emplar ydamag esc annotber ecover edasamat terofr ight;
SECTI
ON1
.-Mor
alDamag
es thec our twilldecidewh et herornott heys houldbeadj udicated.
Art.2234. Wh iletheamountoft heex empl arydamag esneednotbe
Art.221 7.Mor aldamag esi ncludeph ysicals uf fer ing, ment alang ui
sh, proved, th epl ai
ntiffmus tsh owt hath eisent it
ledt omor al,temper ate
fri
g ht,s er i
ousanx iet y, bes mirchedr eput ation, woundedf eel ing s,moral orcompens atorydamag esbef oret hecour tmayc onsi
dert heques t ion
shoc k, soc ialh umi liat ion, ands imi larinjur y. Th oug hinc apabl eof ofwh eth erornotex empl arydamag esshoul dbeawar ded.Inc ase
pec uni ar yc omput at ion, mor aldamag esmayber ecov er edi fth eyar e li
quidat eddamag esh avebeenag reedupon, althoughnopr oofofl os s
thepr ox imat er es ul toft hedef endant '
swr ong fulac tf oromi ssion. isnec es saryinor derthats uc hliquidateddamag esmayber ec overed,
Art.221 8.Int headj udi cat i
onofmor aldamag es ,th es ent i
ment alv alue never t
h eles s,beforethec our tmayc onsidert heques ti
onofg rant ing
ofpr oper ty, realorper sonal ,maybec ons ider ed. exempl aryi naddi t
iontot hel iquidateddamag es,theplaintiffmus t
Art.221 9.Mor aldamag esmayber ec overedi nt h ef ollowingand showt hath ewoul dbeent i
tledt omor al,temper ateorc ompens ator y
anal og ousc as es: damag eswer eitnotf orthes ti
pul ati
onf orliquidateddamag es .
(1)Ac rimi nalof fens er es ulti
ngi nph ysi
c ali nj uries ; Art.2235 .As t
ipulationwh erebyex emplar ydamag esar erenounc edi n
(2)Quas i
-del ict
sc aus ingph ysicali njuries ; advanc es hallbenul landv oi d.
 
(3)Seduc tion, abduc tion, rape, orot herl as civ iousac ts;  
(4)Adul teryorc onc ubi nag e; Tit
leXI X.-CONCURRENCEANDPREFERENCE
(5)I l
leg alorar bitr ar ydet entionorar res t; OF CREDI TS
(6)I l
leg als ear ch;  
(7)Li bel , slanderoranyot herfor mofdef amat ion; CHAPTER1
(8)Mal iciouspr os ec ut ion; GENERALPROVI SIONS
(9)Ac tsment ionedi nAr t
icle309;
(10)Ac tsandac tionsr ef erredt oi nAr ticles21 ,26 ,27, 28, 29, 30, 32,34, Art.2236 .Th edebt ori sliablewi t
hal lhispr oper t
y ,presentandf ut
ure,
and35 . forth eful f
illmentofh isobl igat i
ons, s
ubjec tt oth eex empt ions
Thepar ent soft h ef emal es educ ed, abduc ted, raped, orabus ed, providedbyl aw. (1 911a)
refer redt oi nNo. 3oft h i
sar tic
l e,mayal s or ec ov ermor aldamag es. Art.2237. Ins ol v
enc ys hallbeg overnedbys pec iall awsins of arasthey
Thes pous e, desc endant s,as cendant s,
andbr ot her sands is tersmay arenoti ncons istentwi ththisCode. (n)
bringt h eac tionment i
onedi nNo. 9oft hisar ticl e, i
nt h eor dernamed. Art.2238. Sol ongast hec onj ugalpar tnersh i
porabs olutec ommuni ty
Art.2220. Wi l
lfulinj ur yt opr oper tymaybeal eg alg roundf orawar ding subsists, it
spr oper tys hallnotbeamongt h eas set stobet aken
mor aldamag esift h ec our tshoul df i
ndt h at, undert h ec ir
cums tances, pos s
es sionofbyt h eas s i
gneef orthepay mentoft heinsolv entdebtor's
suc hdamag esar ej us tlydue. Th es amer ul eappl i
est obr eac h esof obligations ,ex cepti ns ofarast helat t
erh av eredoundedt ot hebenefit
cont rac twh eret hedef endantac tedf raudul ent l yori nbadf ait h.  ofthef ami l
y .Ifiti st heh usbandwh oisins olvent, theadmi nis t
rati
onof
  thec onjug alpar tner sh ipofabs olutec ommuni tymay ,byor deroft he
SECTI ON2. -Nomi nalDamag es court,bet rans fer redt ot hewi feort oat hirdper s onot hert h anthe
assignee. (
n)
Art.2221.Nomi naldamag esar eadj udicat
edi norderthatar i
ghtofth
e Art.2239. Ift her ei spr oper ty,ot herthant hatment i
onedi nt he
plai
nt i
ff,whichh asbeenv i
olatedori nvadedbyt hedefendant,maybe precedi ngar ticle, ownedbyt woormor eper sons, oneofwh omi sthe
vi
ndi c
atedorr ecog nized, andnotf ort h
epur poseofindemnifyi
ngthe insolventdebt or, hisundi videds hareori nter estt hereinsh al lbeamong
plai
nt i
ffforanyl osss ufferedbyhi m. theas set st obet akenpos s
es sionofbyt heas signeef orth epay ment
Art.2222.Thec our tmayawar dnomi naldamag esineveryobligati
on ofthei ns olventdebt or '
sobl igat i
ons. (
n)
aris
ingf r
omanys ourceenumer at
edi nArticl
e1157,orineverycase Art.2240. Pr oper tyh eldbyt h ei nsolventdebt orasat rusteeofan
whereanypr oper tyrighth asbeeni nvaded. expres sori mpl iedt rus t,
shal lbeex c l
udedf romt heinsolv enc y
Art.2223.Theadj udicationofnomi naldamag ess h
allprecl
udef urt
her proceedi ng s.( n) 
contestupont h er igh
ti nvolvedandal laccessor
yques t
ions,asbetween  
thepar t
iestot hes ui
t, ortheirrespec ti
veh ei
rsandas si
gns.
  CHAPTER2
  CLASSI FI CATI ONOFCREDI TS
SECTION3. -Temper at eorModer at eDamag es
Art.2241 . Withr ef erenc et os pec ificmov abl epr oper tyoft hedebt or,
Art.
2224.Temperateormoder atedamag es,whi
charemor ethan thefol lowi ngc laimsorl ienss hal lbepr ef er red:
nominalbutlessthancompensat or
ydamag es,
mayber ecoveredwh en (1)Dut ies ,tax esandf eesduet h ereont ot heSt at eoranys ubdi vision
thecourtfi
ndsthatsomepec uniarylosshasbeens uff
eredbuti t
s thereof ;
amountc annot,f
romt henatur
eoft h ecase,beprovi
dedwi t
hc ert
aint
y. (2)Cl aimsar isi
ngf rommi s appr opr iation, breac hoft rus t, or
Art.
2225.Temperatedamag esmus tber easonableunderthe mal feas anc ebypubl icof ficialsc ommi t
t edi nt heper formanc eoft heir
ci
rcumstances.
  duties ,ont h emov abl es ,moneyors ec uritiesobt ai nedbyt h em;
  (3)Cl aimsf ort heunpai dpr i
c eofmov abl ess ol
d, ons aidmov abl es ,so
SECTION4. -Li
quidatedDamag es longast h eyar ei nt h epos s es sionoft hedebt or,upt ot h
ev al ueoft he
same; andi fthemov abl eh asbeenr esol dbyt hedebt orandt hepr i
c eis
Art.2226.Liquidateddamag esar et hos eag reeduponbyt h
epar t
iesto stil
lunpai d, thel ienmaybeenf or cedont h epr ice; th isrig hti snotl ost
ac ontr
ac t
,t obepai dincas eofbr eacht her eof
. byth ei mmobi l
izat ionoft het hingbydes tination, pr ov idedi th asnot
Art.2227.Liquidateddamag es,whetheri ntendedasani ndemnityora lostitsf or m, subs tanc eandi dent ity;nei theri st her i
g htl os tbyt h es ale
penalty,shallbeequi tabl
yr educedi ftheyar einiqui
tousor ofthet hingt og eth erwi thot herpr oper tyf oral umps um, wh ent hepr ic
e
unconscionable. thereofc anbedet er mi nedpr opor tional ly ;
Art.2228.Wh ent hebreachoft hecont ractc ommi ttedbythedefendant (4)Cr edi tsg uar ant eedwi thapl edg es ol ongast het hingspl edg edar e
isnottheonec ont emplatedbyt hepar tiesinag r
eeinguponthe intheh andsoft hec redi tor, ort h os eg uar ant eedbyac hat telmor tgage,
li
quidateddamag es,t
h el
aws h
alldet erminet h
emeas ureofdamag es
, upont het hing spl edg edormor tg ag ed, upt ot hev aluet her eof ;
andnott hes ti
pul ati
on.  (5)Cr edi tsf ort hemaki ng ,repai r, safekeepi ngorpr es erv at i
onof
  personalpr oper ty ,ont hemov abl et husmade, repai red, keptor
SECTION5 .-Ex emplaryorCor recti
veDamag es poss ess ed;
(6)Cl aimsf orl abor ers 'wag es ,ont heg oodsmanuf ac turedort hewor k
Art.2229.Ex empl aryorc orrectivedamag esar eimpos ed,bywayof done;
exampl eorc orrecti
onf ort hepubl icg ood,inaddi t
iontothemor al
, (7)Forex pens esofs al vag e, upont heg oodss alv ag ed;
temper ate, li
quidatedorc ompens atorydamag es. (8)Cr edi tsbet weent hel andl or dandt h et enant ,ar isingf romt he
Art.2230. Incriminaloffens es,ex empl arydamag esasapar tofthe contrac toft enanc yons har es ,ont hes h ar eofeac hi nt hef ruitsor
civ
illiabilitymaybei mpos edwh ent hec r
imewasc ommi tt
edwithone harves t;
ormor eag gravatingcircums tances .Suchdamag esares eparat
eand (9)Cr edi tsf ort rans por tat ion, upont heg oodsc ar ried, fort hepr ic eof
disti
nc tfromf inesands hallbepai dtot heof f
endedpar ty. thec ont rac tandi nc ident alex pens es ,unt ilt heirdel iveryandf ort hirt
y
Art.2231 .
Inquas i
-delic
ts ,exempl arydamag esmaybeg rantedifth
e dayst her eaf ter;
defendantac tedwi thgrossneg l
igenc e. (10)Cr edi tsf orl odg ingands uppl iesus ual lyfur nis hedt ot rav ellersby
Art.2232. Incont r
ac t
sandquas i
-cont r
ac ts
,thec ourtmayawar d hotelkeeper s,ont hemov abl esbel ong i
ngt ot heg ues tasl ongass uch
exempl arydamag esifthedef endantac tedi nawant on,fr
audulent, mov abl esar eint heh otel ,butnotf ormoneyl oanedt ot heg ues t
s ;
reckles s
,oppr essive,ormal evolentmanner . (11)Cr edi tsf ors eedsandex pens esf orc ul t
ivationandh ar ves t
adv anc edt ot h edebt or ,upont hef rui tsh ar ves ted; notcompr
isedi
nth
efourpr
ecedi
ngart
icl
es,
shal
lenj
oynopr
efer
enc
e.
(12)Cr edi tsf orr entf oroney ear ,upont heper sonalpr oper tyoft he (1925
) 
less eeex is tingont hei mmov abl el eas edandont h ef rui tsoft h es ame,  
butnotonmoneyori ns trument sofc redi t ; CHAPTER3
(13)Cl ai msi nf av oroft hedepos itori ft h edepos i
t aryh aswr ong fully ORDEROFPREFERENCEOFCREDITS
soldt het h ingdepos ited, upont h epr iceoft hes al e.
Int hef or eg oi ngc as es ,ift hemov abl est owh icht h el ienorpr ef er enc e Art.2246 .
Thos ec reditswh ic henj oypr efer enc ewi thr es pectt os pec if
ic
attac h esh av ebeenwr ong f ullyt aken, t
h ec redi tormaydemandt hem mov ables,ex cludeal lot her stot heex t
entoft hev al ueoft h eper s onal
fromanypos s es sor ,wi thi nt hir tyday sf romt h eunl awf uls eiz ur e. (1922a) propertyt owh ic hth epr ef er enc er efers.
Art .2242. Wi thr ef er enc et os pec ifici mmov abl epr oper tyandr eal Art.2247.Ifth er ear et woormor ec reditswi thr espec tt othes ame
rightsoft h edebt or ,th ef ol lowi ngc laims , mor tg ag esandl ienss h allbe spec i
fi
cmov abl epr oper ty, theys hallbes at i
s fi
edpr or ata,aftert h e
pref er red, ands hal lc ons t ituteanenc umbr anc eont hei mmov abl eor paymentofdut ies ,tax esandf eesduet heSt ateoranys ubdivision
realr igh t: thereof.(1926a)
(1)Tax esdueupont h el andorbui lding ; Art.2248.Thos ec reditswh ic henj oypr efer enc ei nr elationt os pec ifi
c
(2)Fort h eunpai dpr i
c eofr ealpr oper t ys ol d, upont h ei mmov abl es old; realproper tyorr ealr ig hts, ex cludeal lot herst ot h eex t
entoft he
(3)Cl ai msofl abor er s ,mas ons , mec h ani csandot h erwor kmen, aswel l valueoft hei mmov ableorr ealr ig
h ttowh icht hepr ef erencer ef ers .
asofar ch itec t s, eng ineer sandc ont rac tor s , eng ag edi nt h e Art.2249.Ifther ear et woormor ec reditswi thr espec tt othes ame
cons tr uc tion, rec ons truc ti onorr epai rofbui lding s, canal sorot her spec i
fi
cr ealpr oper tyorr ealr ights,theys hal lbes at is
f i
edpr or at a,
wor ks ,upons ai dbui ldi ng s, canal sorot herwor ks ; afterthepay mentoft h et ax esandas ses sment supont heimmov able
(4)Cl ai msoff ur ni s her sofmat er ial sus edi nt hec ons truc tion, propertyorr ealr igh t
.( 1927a)
rec ons tr uc tion, orr epai rofbui ldi ng s ,canal sorot h erwor ks ,upons aid Art.2250.Theex ces s,ifany ,af tert hepay mentoft h ec reditswh ich
buildi ng s ,c anal sorot h erwor ks ; enjoypr eferenc ewi thr espec tt os pecifi
cpr oper ty, realorper sonal ,
(5)Mor tgag ec redi tsr ec or dedi nt heReg ist ryofPr oper ty ,upont he shallbeaddedt ot hef reepr oper tywh i
cht hedebt ormayh ave, fort he
reales tat emor tg ag ed; paymentoft heot h erc redi ts. (1928a)
(6)Ex pens esf ort h epr es er vat ionori mpr ov ementofr ealpr oper ty Art.2251.Thos ec reditswh ic hdonotenj oyanypr efer enc ewi thres pec t
wh ent hel awaut h or iz esr eimbur s ement , upont h ei mmov abl e tos pecifi
cpr oper ty,andt h os ewh ichenj oypr efer enc e,ast othe
pres er v edori mpr ov ed; amountnotpai d, s hallbes atisfiedac cor dingt ot hef ollowingr ules :
(7)Cr edi tsannot at edi nt h eReg is tryofPr oper ty, inv irtueofaj udic i
al (1)Intheor deres tablis hedi nAr ticle2244;
order ,byat tac hment sorex ec ut ions , upont h epr oper tyaf fec ted, and (2)Commonc r edi tsref err edt oinAr t
icle2245s hal lbepai dpr or ata
onl yast ol at erc redi ts; regardlessofdat es .(1929a)  
(8)Cl ai msofc o-h ei rsf orwar rant yi nt hepar titionofani mmov abl e  
amongt h em, upont her ealpr oper t yt husdi vided; TRANSI TIONALPROVI SI ONS
(9)Cl ai msofdonor sorr ealpr oper tyf orpec uni ar yc h ar gesorot her
condi t ionsi mpos edupont h edonee, upont hei mmov abl edonat ed; Art.225 2. Ch ang esmadeandnewpr ov isionsandr ul esl ai ddownbyt h i
s
(10)Cr edi tsofi ns ur er s,upont h epr oper tyi ns ured, fort hei ns ur anc e Codewh ichmaypr ejudi ceori mpai rv es tedorac qui redr ig ht sin
premi umf ort woy ear s .(1 923a) accor danc ewi t ht heol dl eg isl
at ions h allh av enor et roac tiveef fec t.
Art .2243. Th ec lai msorc redi t senumer at edi nt het wopr ec edi ng Fort h edet ermi nat i
onoft heappl icabl el awi nc as eswh ichar enot
artic less h al lbec ons ider edasmor tg ag esorpl edg esofr ealor spec ifiedel sewh er ei nt hisCode, th ef ol lowi ngar tic l
ess h al lbe
per sonalpr oper ty ,orl ienswi th int h epur viewofl eg alpr ov is ions obser ved: (Par s. 1and2, Trans itionalPr ov isions ).
gov er ningi ns ol v enc y. Tax esment ionedi nNo. 1,Ar ticle2241 ,andNo. 1, Art.225 3. Th eCi v ilCodeof1 889andot herpr ev iousl awss h allg ov ern
Art i
c le2242, sh al lf irstbes at isfied. (n) rightsor ig inating , unders aidl aws , fromac tsdoneorev ent swh ic ht ook
Art .2244. Wi thr ef er enc et oot herpr oper ty ,r ealandper s onal , oft he plac eundert h eirr eg ime, ev ent houg ht hisCodemayr eg ul at eth emi na
debt or , thef ol lowi ngc laimsorc redi t ss h al lbepr ef er redi nt h eor der differ entmanner , ormaynotr ec og niz et h em. Buti far ig hts houl dbe
named: dec lar edf ort h ef irstt imei nt hisCode, its hal lbeef fec tiveatonc e,
(1)Pr operf uner alex pens esf ort hedebt or ,orc hildr enunderh isorh er event h oug hth eac torev entwh ichg ivesr iset her et omayh av ebeen
par ent alaut hor it ywh oh av enopr oper tyoft h eirown, wh enappr ovedby doneormayh av eoc c urredunderpr iorl eg i
s lati on, prov ideds aidnew
thec our t ; rightdoesnotpr ej udi ceori mpai ranyv es tedorac quiredr ig ht,oft h e
(2)Cr edi tsf ors er vic esr ender edt h ei ns ol ventbyempl oy ees , labor ers, sameor igin. (
Rul e1 )
orh ous eh ol dh el per sf oroney earpr ec edi ngt hec ommenc ementoft he Art.225 4. Nov es t edorac quiredr ightc anar is ef r omac tsoromi ss i
ons
proc eedi ng si ni ns ol venc y; whichar eag ains tt h el aworwh ichi nf ring eupont h er igh tsofot h ers .(n)
(3)Ex pens esdur ingt h el as ti llnes soft hedebt ororofh isorh er Art.225 5 .Th ef or merl awss hallr eg ul at eac t
sandc ont rac tswi t
ha
spous eandc h ildr enunderh i
sorh erpar ent alaut h or ity,ift h eyh av eno condi t i
onorper iod, wh ichwer eex ec ut edorent er edi ntobef oret h e
proper t yoft hei rown; effec tivit yoft h isCode, ev ent houg ht h ec ondi tionorper iodmays tillbe
(4)Compens at ionduet hel abor er sort h ei rdependent sunderl aws pendi ngatt het imet h i
sbodyofl awsg oesi nt oef fec t.(n)
prov idi ngf ori ndemni t yf ordamag esi nc as esofl aborac cident , or Art.225 6 .Ac tsandc ont rac tsundert h er eg i
meoft heol dl aws ,i
ft h ey
ill
nes sr es ul tingf romt henat ur eoft h eempl oy ment ; arev alidi nac c or danc et her ewi th,s hal lc ont inuet obef ul lyoper ativ e
(5)Cr edi t sandadv anc ement smadet ot hedebt orf ors uppor tof aspr ov idedi nt h es ame, wi thth el i
mi tat ionses tabl ishedi nt hes er ul es.
hims el forh er sel f, andf ami ly, dur ingt h el as ty earpr ecedi ngt h e Butt her ev ocat ionormodi ficat i
onoft hes eac tsandc ont r ac tsaf ter
insol venc y ; thebeg inni ngoft heef fec tivit
yoft h isCode, sh al lbes ubj ec tt ot he
(6)Suppor tdur ingt hei ns ol venc ypr oc eedi ng s ,andf ort h reemont hs prov isionsoft hisnewbodyofl aws .( Rul e2a)
ther eaf t er ; Art.225 7. Pr ovis i
onsoft hisCodewh ichat tac hac i
v ilsanc t ionor
(7)Fi nesandc ivili ndemni f icat ionar isingf romac rimi nalof fens e; penal tyoradepr iv ationofr ightst oac tsoromi s sionswh ichwer enot
(8)Leg alex pens es , andex pens esi nc ur redi nt headmi ni strat i
onoft h e penal izedbyt h ef or merl aws ,arenotappl i
c abl et ot hos ewh o,wh en
insol vent '
ses tat ef ort h ec ommoni nt er es toft hec redi tor s ,wh en saidl awswer ei nf or ce, mayh av eex ec utedt h eac tori nc ur redi nt he
proper lyaut h or iz edandappr ov edbyt h ec our t; omi ss ionf orbi ddenorc ondemnedbyt h i
sCode.
(9)Tax esandas s es sment sduet henat ionalg ov er nment ,ot h ert han Ifthef aul tisal s opuni shedbyt hepr ev i
ousl eg is lat ion, th el esss ev er e
thos ement ionedi nAr ti cles2241 ,No. 1,and2242, No. 1; sanc tions hallbeappl i
ed.
(10)Tax esandas s es sment sdueanypr ov inc e, ot hert hant h os e Ifac ont inuousorr epeat edac toromi s sionwasc ommenc edbef or et he
refer redt oi nAr tic les2241 , No. 1 ,and2242, No. 1; begi nni ngoft h eef fec tivityoft hisCode, andt hes ames ubs istsori s
(11)Tax esandas ses sment sdueanyc ityormuni c ipal ity, oth ert han mai nt ainedorr epeat edaf tert hisbodyofl awsh asbec omeoper at ive,
thos ei ndi cat edi nAr ticles2241 , No. 1, and2242, No. 1 ; thes anc tionorpenal typr es cribedi nt hisCodes hal lbeappl ied, ev en
(12)Damag esf ordeat horper sonali njur iesc aus edbyaquas i-del i
c t; thoug ht hepr ev iousl awsmaynoth av epr ov i
dedanys anc t ionorpenal ty
(13)Gi f tsduet opubl icandpr iv atei ns titut ionsofc harityor theref or . (Rule3a)
benef icenc e; Art.225 8. Ac tionsandr i
g htswh ichc amei ntobei ngbutwer enot
(14)Cr edi tswh ic h, wi thouts pec ialpr ivileg e, appeari n( a)apubl ic exer ci sedbef oret heef fec tivityoft hisCode, s hal lr emai ni nf ullf or ce
instrument ; or( b)i naf inalj udg ment ,ift h eyh av ebeent hes ubj ec tof inconf or mi tywi tht heol dl eg i
slat ion; butt heirex er cise, dur at i
onand
lit
ig at i
on. Th es ec r edi tss hal lh av epr efer enc eamongt h ems el vesi nt he thepr oc edur et oenf orcet hems h allber eg ul atedbyt h i
sCodeandby
orderofpr ior ityoft hedat esoft hei ns trument sandoft h ej udg ment s, theRul esofCour t.Ift heex erc i
s eoft her i
g htoroft heac ti onwas
res pec t ivel y. (1924a) commenc edundert heol dl aws ,buti spendi ngont h edat et h isCode
Art .2245 .Cr edi tsofanyot h erki ndorc las s ,orbyanyot herr ig htort i
tle takesef fec t
,andt hepr oc edur ewasdi ffer entf romt hates t ablish edi n
thi
snewbodyofl aws , t
h epar tiesc onc er nedmayc hoos ewh ichmet h od
orc our s et opur s ue. (Rul e4)
Art.225 9.Th ec apac it yofamar r i
edwomant oex ec ut eac tsand
contr ac tsi sg ov er nedbyt hisCode, ev eni fh ermar riag ewasc elebr ated
undert h ef ormerl aws .(n)
Art.226 0.Th ev olunt ar yr ec og nit i
onofanat ur alc h ilds hal lt akepl ac e
accor di ngt ot h isCode, ev eni ft hec h ildwasbor nbef or et h eef fec tivity
ofth isbodyofl aws .(n)
Art.226 1.Th eex empt ionpr es cribedi nAr tic le302s hal lal sobe
appl icabl et oanys uppor t, pens ionorg r at uit yal readyex istingor
grant edbef oret hisCodebec omesef f ec tiv e. (n)
Art.226 2.Guar di ansoft h epr oper tyofmi nor s , appoi nt edbyt h ec our ts
befor et hisCodeg oesi nt oef fec t,s hal lc ont inuet oac tass uc h,
notwi ths tandi ngt h epr ov isionsofAr tic le320. (n)
Art.226 3.Ri ght st ot hei nh er itanc eofaper sonwh odi ed, wi thorwi th out
awi ll,bef or et h eef fec ti vi
tyoft h isCode, sh al lbeg ov er nedbyt h eCi vil
Codeof1 889, byot herpr ev iousl aws , andbyt h eRul esofCour t.Th e
inheritanc eoft hos ewh o, wi thorwi t houtawi ll ,di eaf t ert h ebeg i
nni ng
ofth eef fec ti
v ityoft hisCode, s hal lbeadj udi c at edanddi str i
but edi n
accor danc ewi tht h isnewbodyofl awsandbyt heRul esofCour t;butt he
testament ar ypr ov isionss h al lbec ar riedouti ns of arast heymaybe
permi ttedbyt hisCode. Ther efor e, leg it imes ,bet t erment s,leg ac iesand
beques tss hallber es pec ted; howev er , thei ramounts h al lber educ edi f
innoot hermannerc anev er yc ompul sor yh ei rbeg i
v enh isf ulls har e
accor di ngt ot h isCode. (Rul e1 2a)
Art.226 4.Th es tat usandr ig htsofnat ur alc hil dr enbyl eg alf i
ct i
on
refer redt oi nar ticle89andi lleg itimat ec hildr enment ionedi nAr tic l
e
287, sh allal sobeac qui redbyc h i
l dr enbor nbef or et heef fec tivityof
thi
sCode. (n)
Art.226 5.Th er ig htofr et ent ionofr ealorper s onalpr oper tyar i
s i
ng
aftert h isCodebec omesef fec tiv e, inc ludest h os et hing swh ichc ame
intot hec redi tor '
spos ses sionbef or es ai ddat e. ( n)
Art.226 6.Th ef ol lowi ngs hal lh av enotonl ypr os pec tiv ebutal so
retroac ti
v eef f ec t:
(1)Ar tic l
e31 5 ,wh er ebyades cendantc annotbec ompel led, ina
cri
mi nalc ase, t ot es t if
yag ai ns th ispar ent sandas c endant s ;
(2)Ar t icles1 01and88, pr ov idingag ains tc ol lus ioni nc as esofl eg al
separ at ionandannul mentofmar riag e;
(3)Ar t icles283, 284, and289, conc er ni ngt h epr oofofi lleg itimat e
fil
iation;
(4)Ar t i
c le838, aut h or i
z ingt hepr obat eofawi llonpet itionoft he
testat orh ims el f;
(5)Ar tic l
es1 35 9t o1 369, r
el at ivet ot h er ef or mat ionofi ns trument s;
(6)Ar tic l
es476t o481 ,reg ul atingac tionst oqui ett itle;
(7)Ar t i
c les2029t o2031 ,wh ic har edes ig nedt opr omot ec ompr omi s e.
(n)
Art.226 7.Th ef ol lowi ngpr ov is i
onss h al lappl ynotonl yt of ut urec as es
butal s ot ot hos ependi ngont hedat et hisCodebec omesef fec tive:
(1)Ar tic l
e29, Rel at iv et oc rimi nalpr os ec ut ionswh er ei nt heac cus edi s
acqui ttedont h eg roundt hath isg ui lth asnotbeenpr ov edbey ond
reas onabl edoubt ;
(2)Ar t icle33, c onc er ni ngc as esofdef amat ion, fraud, andph ysical
inj
ur ies .(n)
Art.226 8.Sui tsbet weenmember soft h es amef ami lywh ichar ependi ng
atth et imet hisCodeg oesi nt oef fec ts h al lbes us pended, unders uc h
termsast hec our tmaydet er mi ne, inor dert hatc ompr omi s emaybe
earnes tlys oug h t, or ,inc aseofl eg als epar at ionpr oc eedi ng s,fort he
purpos eofef fec ting ,ifpos s ible, ar ec onc iliat ion. (n)
Art.226 9.Th epr inc ipl esuponwh icht hepr ec edi ngt rans itional
prov i
s ionsar ebas eds h all, byanal og y ,beappl i
edt oc as esnot
spec ifical lyreg ulat edbyt hem. ( Rul e1 3a)  
 
REPEALI NGCLAUSE

Art.2270.Thef ollowingl awsandr egulati

onsar eherebyrepeal ed:
(1)Th osepar t
sandpr ovis
ionsoft heCi vi
lCodeof1 889wh ichar ein
forceont hedat ewhent hi
snewCi vilCodebec omesef f
ective:
(2)Th eprov i
sionsoft h eCodeofCommer cegoverni
ngs ales,
partnership,ag ency,loan, depositandg uaranty;
(3)Th eprov i
sionsoft h eCodeofCi v i
lProcedureonpr escri
ptionasf ar
asinc onsi
stentwi tht hisCode; and
(4)Al ll
aws ,Act s,
par tsofAc ts,rulesofc ourt
,executiveorders ,and
admi nist
rativer egulationswh i
c harei nc
ons i
stentwiththi
sCode. (n)
Appr oved,June1 8,1949.