CIVIL LAW REVIEW II

COURSE OUTLINE WITH LIST OF CASES

Judge Eugene C. Paras

I. Obligations – Arts. 1156-1304

A. In General

1. Definition – Art. 1156

2. Kinds of Obligations as to basis &enforceability – Art. 1423-1430;

Villaroel v. Estrada, 71 Phil 140

Ansay v. NDC, 107 Phil 997
DBP v. Confessor, 161 SCRA 307 (1988)

3. Elements of Obligations

B. Sources of Civil Obligations – Art. 1157

1. Law – Art. 1158

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

a. Negotiorum Gestio
b. Solutio Indebiti
c. Other Quasi-Contracts

Cruz v. Tuazon & Co., 76 SCRA 543

Gutierrez Hermanos v. Orense, 28 Phil 571
Adille v. CA, 157 SCRA 455
Andres v. Mantrust, 177 SCRA 618 (1989)
Puyat & Sons v. Manila, 7 SCRA 970

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

Saludaga v. FEU, G.R. No. 179337 April 30, 2008

Sagrada Orden v. NACOCO, 91 Phil 503
People’s Car v. Commando Security, 51 SCRA 40
Cangco v. MRR, 38 Phil 768
Gutierrez v. Gutierrez, 56 Phil 177

C. Compliance with Obligations – Arts. 19, 1163-1166, 1244, 1246, 1460,

442, 440

D. Kinds of Civil Obligations

1. As to Perfection & Extinguishment

a. pure – Arts. 1179, 1197

b. conditional – Arts. 1181-1190
c. with a term or period – Arts. 1180, 1193, 1198

Hongkong and Shanghai Banking Corp. vs. Spouses Broqueza, G.R. No.
178610 November 17, 2010

Pay v. Palanca, 57 SCRA 618

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

2. As to Plurality of Prestation

a. conjuctive
b. alternative – Arts. 1199-1205
c. facultative – Art. 1206

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

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

Calang and Philtranco vs. People, F.R. No. 190696 August 3, 2010
Ronquillo v. CA, 132 SCRA 274
Malayan Insurance v. CA, 165 SCRA 536
PNB v. Independent Planters, 122 SCRA 113

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

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

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

a. with a Penal Clause – Arts. 1226-1230

Distinguish from Liquidated Damages

Bachrach v. Espiritu, 52 Phil 346

Robes-Francisco v. CFI, 86 SCRA 59
Pamintuan v. CA, 94 SCRA 556

E. Breach of Obligations – Art. 1170

Manner of Breach
1. fraud – Arts. 1171, 1338, 1344
2. negligence – Arts. 1171-1173
3. delay – Arts. 1169, 1165, 1786, 1788, 1896, 1942
4. any other manger of contravention

Excuse for non-performance

1. Fortuitous Event – Art. 1174, 552, 1165, 2147, 2159
2. Acto of creditor

Sicam v. Jorge, G.R. No. 159617 August 8, 2007

Meralco v. Ramoy, G.R. No. 158911 March 4, 2008
Solar Harvest, Inc. v. Davao Corrugated Carton Corp.,
G.R. No. 176868 July 26, 2010
Mindanao Terminal v. Phoenix Assurance, G.R. No.162467 May 8, 2009
Ageoili v. GSIS, 165 SCRA I
Arrieta v. Naric, 10 SCRA 79
Telefast v. Castro, 158 SCRA 445
 NPC v. CA, 161 SCRA 334
Jimenez v. City of Manila, 150 SCRA 510
Nakpil & Sons v. CA, 144 SCRA 596; 160 SCRA 334

F. Remedies for Breach of Obligations – Arts. 1165-1168, 1170, 1177-1178,

1191-1192, 2236, 302, 1708; Arts. 153, 155 FC; Rule 39 Sec. 13

1. Extra-judicial remedies
a. expressly granted by law – Arts. 1786, 1788, 1526
b. stipulated

2. Judicial remedies
a. principal remedies – Arts. 1191, 1170
b. subsidiary remedies – Arts. 1380, 1177
c. ancillary remedies – Rules of Court

Unlad Resources Development v. Dragon, G.R. No. 149338 July 28, 2008
Universal Food Corp. v. CA, 33 SCRA I
Magdalena Estate v. Myrick, 71 Phil 344
UP v. de los Angeles, 35 SCRA 102
Zulueta v. Mariano, III SCRA 206
Palay, Inc. v. Clave, 124 SCRA 638
Angeles v. Calasanz, 135 SCRA 323
Boysaw v. Interphil Promotions, 148 SCRA 635
Pilipinas Bank v. IAC, 151 SCRA 546
Central Bank v. CA, 139 SCRA 46

G. Modes of Extinguishment of Obligations – Art. 1231

Saura v. DBP, 44 SCRA 445

1. Payment or performance – Arts. 1232, 1244, 1246-1251, 1302;

RA 529, RA 8183; PD 72, Sec. 31-32

Landbank of the Philippines vs. Alfredo Ong, G.R. No. 190755

November 24, 2010
J.M. Tuason v. Javier, 31 SCRA 829
Legarda v. Saldaña, 55 SCRA 324
Azcona v. Jamandre, 151 SCRA 317
Arañas v. Tutaan, 127 SCRA 828
Kalalo v. Luz, 34 SCRA 337
Ponce v. CA, 90 SCRA 533
New Pacific Timber v. Señeris, 101 SCRA 686
Roman Catholic Bishop of Malolos, Inc. v. IAC, 191 SCRA 411 (Nov. 16,
1990)
Tibajia, Jr. v. CA, 223 SCRA 831
Filipino Pipe & Foundry Corp. v. NAWASA, 161 SCRA 32
Del Rosario v. Shell, 164 SCRA 556

Special Forms of Payment

a. Dation in Payment – Art. 1245
b. Application of Payments – arts. 1252-1254, 1248
c. Payment by Cession or Assignment – Art. 1255
d. Tender of Payment and Consignation – Arts. 1256-1261

Filinvest v. Phil Acetylene, 111 SCRA 421

Citizens Surety v. CA, 162 SCRA 738
Soco v. Militante, 123 SCRA 160
Immaculata v. Navarro, 160 SCRA 211
 2. Loss of the thing due or Impossibility of Performance – Arts. 1262-
1269, 1189, 1174, 1165, 1268, 1942, 1979, 2147, 2159

People v. Franklin, 39 SCRA 363

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

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

4. Confusion or Mergerof Rights – Arts. 1275-1277, 1215, 1217

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

Kinds of Compensation
a. legal
b. conventional
facultative
c. judicial

Bank of the Philippines v. CA, G.R. No. 136202 January 25, 2007
Gan Tion v. CA, 28 SCRA 235
PNB v. Ong Acero, 148 SCRA 166
Francia v. IAC, 162 SCRA 753
Republic v. de los Angeles, 98 SCRA 103
Solinap v. del Rosario, 123 SCRA 640
Sycip v. CA, 134 SCRA 317
Cia Maritima v. CA, 135 SCRA 593
Int’l. Corporate Bank v. IAC, 163 SCRA 296
Mindanao Portland Cement v. CA, 120 SCRA 930

6. Novation – Arts. 1291-1304, 1215

Kinds of Novation
a. As to its nature
i) subjective or personal
ii) objective or real

b. As to its form
i) express
ii) implied

Japan Airlines v. Simangan, G.R. No. 170141 April 2008

Anamer Salazar vs. J.Y. Brothers Marketing Corp., G.R. No. 171998
October 20, 2010
Metropolitan Bank vs. Rural bank of Gerona, Inc., G.R. No. 159097
July 5, 2010
Fua v. Yap, 74 Phil 287
Millar v. CA, 38 SCRA 642
Sandico v. Piguing, 42 SCRA 322
NPC V. Dayrit, 125 SCRA 849
Integrated Construction v. Relova, 146 SCRA 360
Conchingyan v. R&B Surety, 151 SCRA 339
Balila v. IAC, 155 SCRA 262
People’s Bank v. Syvel’s, 164 SCRA 247
Rodriguez v. Reyes, 37 SCRA 195

7. Other modes

II. Contracts – Arts. 1305-1422

A. In General

1. Definition – Arts. 1305

Auto-contract – Arts. 1491, 1646, 1890

2. Elements of Contracts
a. essential
b. natural
c. accidental

Batchelder v. CB, 44 SCRA 45

B. Fundamental Characteristics/ Principles of Contracts

1. Consensuality of Contracts – Arts. 1305, 1317

Contract of Adhesion

Republic v. PLDT, 26 SCRA 620

Corpus v. CA, 98 SCRA 424

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

Daisy Tiu v. Platinum Plans, G.R. No. 163512 February 28, 2007
Cui v. Arellano University, 2 SCRA 205
Saura v. Sindico, 107 Phil 336
Leal v. IAC, 155 SCRA 394

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

Acceleration Clause
Escalation Clause

Banco Filipino Savings V. Navarro, 152 SCRA 346 (1987)

Florendo v. CA, 265 SCRA 678 (1996)

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

5. Relativity of Contracts – Arts. 1311-1314, 1177-1178, 138 (3)

Privity of Contracts

Saludo, Jr. vs. Security Bank Corp., G.R. No. 184041, October 13, 2010
Metropolitan Bank and Trust Company vs. Reynaldo and Adrandea, G.R.
No. 164538 August 9, 2010
Prudential Bank vs. Abasolo, G.R. No.186738 September 27, 2010
Asian Cathay Finance and Leasing Corporation vs. Spouses Cesario
Gravador and Norma de Vera, et. al, G.R. No. 186550 July 5, 2010
Velasco v. CA, 95 SCRA 616
Kauffman v. PNB, 42 Phil 182
Bonifacio Bros. v. Mora, 20 SCRA 261
Florentino v. Encarnacion, 79 SCRA 192
Bank of America v. IAC, 145 SCRA 419
Marimperio v. CA,156 SCRA 368
Daywalt v. Corp de PP Agustinos, 39 Phil 587
Gilchrist v. Cuddy, 29 Phil 542 (1915)
Estate of K.H. Hemady v. Luzon Surety, 100 Phil 389 (1956)
So Ping Bun v. CA, 314 SCRA 751 (1999)

C. Classification of Contracts

1. according to degree of dependence

a. preparatory – Arts. 1479, 1767, 1868
 b. principal – Arts. 1458, 1638, 1642, 1933, 1962
c. accessory – Arts. 2047, 2085

2. according to perfection
a. consensual – Arts. 1315, 1475
b. real – Arts. 1316, 1934
c. formal – Arts. 1336

3. according to solemnity or form – Arts. 1356

a. any form
b. special form

4. according to purpose
a. transfer of ownership – Arts. 725, 1458, 1638
b. conveyance of use – Arts. 562, 1642, 1933
c. rendition of service – Arts. 1642, 1868

5. according to nature of obligation produced

a. bilateral – Arts. 1642, 1458
b. unilateral – Arts. 2047, 2093

6. according to cause – Arts. 1350

a. onerous – Arts. 1458, 1638, 1642
b. gratuitous or lucative – Arts. 725, 1933
c. remuneratory

7. according to risk
a. commutative
b. aleatory – Arts. 2010

8. according to name
a. nominate
b. Innominate – arts. 1307

9. according to subject matter

a. thing
b. right
c. matter

D. Stages of Contracts

1. Negotiation

Contracts of Option – Arts. 1324, 1479, 1482

Sanchez v. Rigos, 45 SCRA 368

2. Perfection

Tong Brothers Co. v. IAC, 156 SCRA 726

Velasco v. CA, 51 SCRA 439

3. Performance
4. Consummation

E. Essential Elements of Contracts - Arts. 1318

1. Consent of the contracting parties –

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

2. Object certain which is the subject matter of the contract –

Arts. 1347-1349, 1311, 1178
3. Cause of the obligation – Arts. 1350-1355
4. Delivery
5. Due observance of prescribed formalities

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

F. Form of Contracts – Arts. 1356-1358

1. any form – oral

2. special form

a. validity – Arts. 748, 749, 1744, 1773, 1874, 1956, 2134,

Act 1147, Sec 22
b. enforceability – Arts. 1403, 1878
c. greater efficacy or convenience – Arts. 1358

Lao Sok v. Sabaysabay, 138 SCRA 134

Gallardo v. IAC, 155 SCRA 248

G. Reformation of Contracts – Arts. 1359-1369

H. Interpretation of Contracts – Arts. 1370-1379

Lim v. CA, 99 SCRA 668

Republic v. Castellvi, 58 SCRA 336
Eastern Shipping v. Margarina-Verkaufs-Union, 93 SCRA 256

I. Kinds of Contracts as to Validity

1. Valid and binding

2. Valid but defective
i) Rescissible Contracts – Arts. 1380-1389, 1191
ii) Voidable Contracts – Arts. 1390-1402, 1327-1328, 1330
iii) Unenforceable Contracts – Arts. 1403-1408, 1317, 1878
3. Void or Inexistent – Arts. 1409-1422, 1318, 1353, 1378, 1491, 1898

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

Voidable Contracts
Felipe v. Heirs of Aldon, 120 SCRA 628
House Int’l. v. IAC, 151 SCRA 703

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

Void or Inexistent
Hernandez v. CA, 160 SCRA 821
Rubias v. Batiller, 51 SCRA 120
Javier v. vda. De Cruz, 80 SCRA 343
Menil v. CA, 84 SCRA 413
Director of Lands v. Alba, 88 SCRA 513
Tongoy v. CA, 123 SCRA 99
Lita Enterprises v. IAC, 129 SCRA 79
Arsenal v. IAC, 143 SCRA 40
Manotok Realty v. IAC, 149 SCRA 372
Portugal v. IAC, 159 SCRA 178
Yanas v. Acaylar, 136 SCRA 52
Barsobia v. Cuenco, 113 SCRA 547
Godinez v. Fong, 120 SCRA 223
Yap v. Grageda, 121 SCRA 244
Pineda v. de la Rama, 121 SCRA 671
Liguez v. CA, 102 Phil 577
Philbanking v. Lui She, 21 SCRA 52
Avila v. CA, 145 SCRA 541
Teja Marketing v. IAC, 148 SCRA 347
Briones v. Cammayo, 41 SCRA 404
Special Contacts

A. Sales

1. In General
2. Elements
3. Obligations of Seller/Buyer
4. Remedies
5. Extinguished of Sale

Sanchez v. Rigos, 45 SCRA 368

Quiroga v. Parsons Hardware, 38 Phil 501
Martinez v. CA, 56 SCRA 647
Mapalo v. Mapalo, 17 SCRA 114
Paredes v. Espino, 22 SCRA 1000
Kuenzle & Streiff v. Macke & Chandler, 14 Phil 610
Sun Bros. v. Velasco, 54 O.G. 5143
Bautista v. Sioson, 39 Phil 615
Lawyer’s Cooperative v. Tabora, 13 SCRA 762
Carumba v. CA, 31 SCRA 558
Katigbak v. CA, 4 SCRA 243
Song Fo & Co. v. Hawaiian Phil Co., 47 Phil 821
Gerardino v. CA, 50 SCRA 646
Doromal v. CA, 66 SCRA 575
Heirs of Jose Reyes, Jr. v. Amanda Reyes, G.R. No. 158377
August 13, 2019

B. Barter of Exchange

Murphy v. Trinidad, 44 Phil 649

Biagtan v. Oller, 62 Phil 933

C. Lease

1. In General
 2. Elements
3. Obligations of Lessor/Lessee
4. Remedies
5. Termination of Lease

Spouse Chung v. Ulanday Construction, Inc., G.R. No. 156038

October 11, 2010
Cebu Bionic Builders Supply, Inc., v. DBP, G.R. No. 154366
November 17, 2010
Mores v. Yu-Go, G.R. No. 172292 July 23, 2010
Herrera v. Herrera, 7 Phil 274
Gonzales v. Mateo, 74 Phil 573
Dakudao v. Judge Consolacion, 122 SCRA 877 (1983)
Manlapat v. Salazar, 98 Phil 356
Equatorial Realty Dev’t Inc., v. Mayfair Theater, Inc., 264 SCRA 483
November 21, 1996
Pamintuan v. CA, 42 SCRA 344
Heirs of Dimaculangan v. IAC, 170 SCRA 393 (1989)
Fermin v. CA, 196 SCRA 723

D. Loan

1. In General
2. Kinds of Loan

a. Commodatum
b. Mutuum

3. Nature/Characteristics
4. Subject Matter
5. Rights & Obligations of Bailor & Bailee
6. Modes of Extinguishment

Macalinao v. BPI G.R. No. 175490 September 17, 2009

Catholic Vicar Apostolic v. CA, 165 SCRA 515 (1988)
Republic v. Bagtas, 6 SCRA 262 (1962)
Saura Import & Export v. DPT (1972)
Herrera v. Petrophil Corp., 146 SCRA 385
Integrated Realty Corp. v. PNB, 174 SCRA 295 (1989)
Republic v. CA, 146 SCRA 15 (1986)
Quintos v. Beck, 69 Phil 108 (1939)
Republic v. Grijaldo, 15 SCRA 638 (L-20240, December 31, 1965)
De los Santos v. Jarra, 15 Phil 147 (1910)
Mina v. Pascual, 25 Phil 540 (1913)
Briones v. Cammayo, 41 SCRA 404 (1971)
Lopez v. del Rosario, 44 Phil 98 (1922)
Zobel v. City of Manil, 47 Phil 169 (1925)
Reformina v. Tomol, 139 SCRA 260 (1985)
Liam Law v. Olympic Sawmill Co., 129 SCRA 439 (1984)
Banco Filipino v. Navarro, 152 SCRA 346 (1987)
PNB v. IAC and Maglasang, 183 SCRA 133 (1990)
PNB v. CA and Padilla, 196b SCRA 536 (1991)
PNB v. CA and Fernandez, 238 SCRA 80 (1994)
Florendo v. CA, 265 SCRA 678