ObliCon Provisions

8/12/2019 ObliCon Provisions

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BOOK IV

OBLIGATIONS AND CONTRACTS

Title. I. - OBLIGATIONS

CHAPTER 1

GENERAL PROVISIONS

Art. 1156. An obligation is a juridical necessity to give, to do or not to do. (n)

Art. 1157. Obligations arise from:

(1) a!"(#) $ontracts"(%) &uasi'contracts"() Acts or omissions unis*ed by la!" and(5) &uasi'delicts. (1+-a)

Art. 115. Obligations derived from la! are not resumed. Only t*ose eresslydetermined in t*is $ode or in secial la!s are demandable, and s*all be regulatedby t*e recets of t*e la! !*ic* establis*es t*em" and as to !*at *as not beenforeseen, by t*e rovisions of t*is /oo0. (1+-+)

Art. 115-. Obligations arising from contracts *ave t*e force of la! bet!een t*econtracting arties and s*ould be comlied !it* in good fait*. (1+-1a)

Art. 116+. Obligations derived from uasi'contracts s*all be subject to t*erovisions of $*ater 1, 2itle 34, of t*is /oo0. (n)

Art. 1161. $ivil obligations arising from criminal oenses s*all be governed by t*eenal la!s, subject to t*e rovisions of Article #177, and of t*e ertinent rovisionsof $*ater #, reliminary 2itle, on 8uman 9elations, and of 2itle 34 of t*is /oo0,regulating damages. (1+-#a)

Art. 116#. Obligations derived from uasi'delicts s*all be governed by t*e rovisionsof $*ater #, 2itle 34 of t*is /oo0, and by secial la!s. (1+-%a)

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Art. 116%. very erson obliged to give somet*ing is also obliged to ta0e care of it!it* t*e roer diligence of a good fat*er of a family, unless t*e la! or t*estiulation of t*e arties reuires anot*er standard of care. (1+-a)

Art. 116. 2*e creditor *as a rig*t to t*e fruits of t*e t*ing from t*e time t*eobligation to deliver it arises. 8o!ever, *e s*all acuire no real rig*t over it until t*esame *as been delivered to *im. (1+-5)


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Art. 1165. *en !*at is to be delivered is a determinate t*ing, t*e creditor, inaddition to t*e rig*t granted *im by Article 117+, may comel t*e debtor to ma0et*e delivery.

f t*e t*ing is indeterminate or generic, *e may as0 t*at t*e obligation be comlied!it* at t*e eense of t*e debtor.

f t*e obligor delays, or *as romised to deliver t*e same t*ing to t!o or moreersons !*o do not *ave t*e same interest, *e s*all be resonsible for anyfortuitous event until *e *as eected t*e delivery. (1+-6)

Art. 1166. 2*e obligation to give a determinate t*ing includes t*at of delivering allits accessions and accessories, even t*oug* t*ey may not *ave been mentioned.(1+-7a)

Art. 1167. f a erson obliged to do somet*ing fails to do it, t*e same s*all beeecuted at *is cost.

2*is same rule s*all be observed if *e does it in contravention of t*e tenor of t*eobligation. >urt*ermore, it may be decreed t*at !*at *as been oorly done beundone. (1+-)

Art. 116. *en t*e obligation consists in not doing, and t*e obligor does !*at *asbeen forbidden *im, it s*all also be undone at *is eense. (1+--a)

Art. 116-. 2*ose obliged to deliver or to do somet*ing incur in delay from t*e timet*e obligee judicially or etrajudicially demands from t*em t*e fulBllment of t*eirobligation.

8o!ever, t*e demand by t*e creditor s*all not be necessary in order t*at delay may

eist:

(1) *en t*e obligation or t*e la! eressly so declare" or

(#) *en from t*e nature and t*e circumstances of t*e obligation it aears t*att*e designation of t*e time !*en t*e t*ing is to be delivered or t*e service is to berendered !as a controlling motive for t*e establis*ment of t*e contract" or

(%) *en demand !ould be useless, as !*en t*e obligor *as rendered it beyond *iso!er to erform.

n recirocal obligations, neit*er arty incurs in delay if t*e ot*er does not comlyor is not ready to comly in a roer manner !it* !*at is incumbent uon *im.>rom t*e moment one of t*e arties fulBlls *is obligation, delay by t*e ot*er begins.(11++a)

Art. 117+. 2*ose !*o in t*e erformance of t*eir obligations are guilty of fraud,negligence, or delay, and t*ose !*o in any manner contravene t*e tenor t*ereof,are liable for damages. (11+1)


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Art. 1171. 9esonsibility arising from fraud is demandable in all obligations. Any!aiver of an action for future fraud is void. (11+#a)

Art. 117#. 9esonsibility arising from negligence in t*e erformance of every 0ind ofobligation is also demandable, but suc* liability may be regulated by t*e courts,according to t*e circumstances. (11+%)

Art. 117%. 2*e fault or negligence of t*e obligor consists in t*e omission of t*atdiligence !*ic* is reuired by t*e nature of t*e obligation and corresonds !it* t*ecircumstances of t*e ersons, of t*e time and of t*e lace. *en negligence s*o!sbad fait*, t*e rovisions of Articles 1171 and ##+1, aragra* #, s*all aly.

f t*e la! or contract does not state t*e diligence !*ic* is to be observed in t*eerformance, t*at !*ic* is eected of a good fat*er of a family s*all be reuired.(11+a)

Art. 117. cet in cases eressly seciBed by t*e la!, or !*en it is ot*er!isedeclared by stiulation, or !*en t*e nature of t*e obligation reuires t*e

assumtion of ris0, no erson s*all be resonsible for t*ose events !*ic* could notbe foreseen, or !*ic*, t*oug* foreseen, !ere inevitable. (11+5a)

Art. 1175.


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Art. 11+. *en t*e debtor binds *imself to ay !*en *is means ermit *im to doso, t*e obligation s*all be deemed to be one !it* a eriod, subject to t*e rovisionsof Article 11-7. (n)

Art. 111. n conditional obligations, t*e acuisition of rig*ts, as !ell as t*e

etinguis*ment or loss of t*ose already acuired, s*all deend uon t*e *aeningof t*e event !*ic* constitutes t*e condition. (111)

Art. 11#. *en t*e fulBllment of t*e condition deends uon t*e sole !ill of t*edebtor, t*e conditional obligation s*all be void. f it deends uon c*ance or uont*e !ill of a t*ird erson, t*e obligation s*all ta0e eect in conformity !it* t*erovisions of t*is $ode. (1115)

Art. 11%. mossible conditions, t*ose contrary to good customs or ublic olicyand t*ose ro*ibited by la! s*all annul t*e obligation !*ic* deends uon t*em. ft*e obligation is divisible, t*at art t*ereof !*ic* is not aected by t*e imossibleor unla!ful condition s*all be valid.

2*e condition not to do an imossible t*ing s*all be considered as not *aving beenagreed uon. (1116a)

Art. 11. 2*e condition t*at some event *aen at a determinate time s*alletinguis* t*e obligation as soon as t*e time eires or if it *as become indubitablet*at t*e event !ill not ta0e lace. (1117)

Art. 115. 2*e condition t*at some event !ill not *aen at a determinate times*all render t*e obligation eective from t*e moment t*e time indicated *aselased, or if it *as become evident t*at t*e event cannot occur.

f no time *as been Bed, t*e condition s*all be deemed fulBlled at suc* time asmay *ave robably been contemlated, bearing in mind t*e nature of t*eobligation. (111)

Art. 116. 2*e condition s*all be deemed fulBlled !*en t*e obligor voluntarilyrevents its fulBllment. (111-)

Art. 117. 2*e eects of a conditional obligation to give, once t*e condition *asbeen fulBlled, s*all retroact to t*e day of t*e constitution of t*e obligation.;evert*eless, !*en t*e obligation imoses recirocal restations uon t*e arties,t*e fruits and interests during t*e endency of t*e condition s*all be deemed to*ave been mutually comensated. f t*e obligation is unilateral, t*e debtor s*allaroriate t*e fruits and interests received, unless from t*e nature andcircumstances of t*e obligation it s*ould be inferred t*at t*e intention of t*e ersonconstituting t*e same !as dierent.

n obligations to do and not to do, t*e courts s*all determine, in eac* case, t*eretroactive eect of t*e condition t*at *as been comlied !it*. (11#+)


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Art. 11. 2*e creditor may, before t*e fulBllment of t*e condition, bring t*earoriate actions for t*e reservation of *is rig*t.

2*e debtor may recover !*at during t*e same time *e *as aid by mista0e in caseof a susensive condition. (11#1a)

Art. 11-. *en t*e conditions *ave been imosed !it* t*e intention of susendingt*e eDcacy of an obligation to give, t*e follo!ing rules s*all be observed in case oft*e imrovement, loss or deterioration of t*e t*ing during t*e endency of t*econdition:

(1) f t*e t*ing is lost !it*out t*e fault of t*e debtor, t*e obligation s*all beetinguis*ed"

(#) f t*e t*ing is lost t*roug* t*e fault of t*e debtor, *e s*all be obliged to aydamages" it is understood t*at t*e t*ing is lost !*en it eris*es, or goes out ofcommerce, or disaears in suc* a !ay t*at its eistence is un0no!n or it cannot berecovered"

(%) *en t*e t*ing deteriorates !it*out t*e fault of t*e debtor, t*e imairment is tobe borne by t*e creditor"

() f it deteriorates t*roug* t*e fault of t*e debtor, t*e creditor may c*oosebet!een t*e rescission of t*e obligation and its fulBllment, !it* indemnity fordamages in eit*er case"

(5) f t*e t*ing is imroved by its nature, or by time, t*e imrovement s*all inure tot*e beneBt of t*e creditor"

(6) f it is imroved at t*e eense of t*e debtor, *e s*all *ave no ot*er rig*t t*an

t*at granted to t*e usufructuary. (11##)

Art. 11-+. *en t*e conditions *ave for t*eir urose t*e etinguis*ment of anobligation to give, t*e arties, uon t*e fulBllment of said conditions, s*all return toeac* ot*er !*at t*ey *ave received.n case of t*e loss, deterioration or imrovement of t*e t*ing, t*e rovisions !*ic*,!it* resect to t*e debtor, are laid do!n in t*e receding article s*all be alied tot*e arty !*o is bound to return.

As for t*e obligations to do and not to do, t*e rovisions of t*e second aragra* ofArticle 117 s*all be observed as regards t*e eect of t*e etinguis*ment of t*eobligation. (11#%)

Art. 11-1. 2*e o!er to rescind obligations is imlied in recirocal ones, in case oneof t*e obligors s*ould not comly !it* !*at is incumbent uon *im.

2*e injured arty may c*oose bet!een t*e fulBllment and t*e rescission of t*eobligation, !it* t*e ayment of damages in eit*er case. 8e may also see0rescission, even after *e *as c*osen fulBllment, if t*e latter s*ould becomeimossible.


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2*e court s*all decree t*e rescission claimed, unless t*ere be just cause aut*oriEingt*e Bing of a eriod.

2*is is understood to be !it*out rejudice to t*e rig*ts of t*ird ersons !*o *aveacuired t*e t*ing, in accordance !it* Articles 1%5 and 1% and t*e Fortgage

a!. (11#)

Art. 11-#. n case bot* arties *ave committed a breac* of t*e obligation, t*eliability of t*e Brst infractor s*all be euitably temered by t*e courts. f it cannotbe determined !*ic* of t*e arties Brst violated t*e contract, t*e same s*all bedeemed etinguis*ed, and eac* s*all bear *is o!n damages. (n)

@$2O; #. ' Obligations !it* a eriod

Art. 11-%. Obligations for !*ose fulBllment a day certain *as been Bed, s*all bedemandable only !*en t*at day comes.

Obligations !it* a resolutory eriod ta0e eect at once, but terminate uon arrivalof t*e day certain.

A day certain is understood to be t*at !*ic* must necessarily come, alt*oug* itmay not be 0no!n !*en.

f t*e uncertainty consists in !*et*er t*e day !ill come or not, t*e obligation isconditional, and it s*all be regulated by t*e rules of t*e receding @ection. (11#5a)

Art. 11-. n case of loss, deterioration or imrovement of t*e t*ing before t*earrival of t*e day certain, t*e rules in Article 11- s*all be observed. (n)

Art. 11-5. Anyt*ing aid or delivered before t*e arrival of t*e eriod, t*e obligorbeing una!are of t*e eriod or believing t*at t*e obligation *as become due anddemandable, may be recovered, !it* t*e fruits and interests. (11#6a)

Art. 11-6. *enever in an obligation a eriod is designated, it is resumed to *avebeen establis*ed for t*e beneBt of bot* t*e creditor and t*e debtor, unless from t*etenor of t*e same or ot*er circumstances it s*ould aear t*at t*e eriod *as beenestablis*ed in favor of one or of t*e ot*er. (11#7)

Art. 11-7. f t*e obligation does not B a eriod, but from its nature and t*ecircumstances it can be inferred t*at a eriod !as intended, t*e courts may B t*e

duration t*ereof.

2*e courts s*all also B t*e duration of t*e eriod !*en it deends uon t*e !ill oft*e debtor.

n every case, t*e courts s*all determine suc* eriod as may under t*ecircumstances *ave been robably contemlated by t*e arties. Once Bed by t*ecourts, t*e eriod cannot be c*anged by t*em. (11#a)


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Art. . 2*e debtor s*all lose every rig*t to ma0e use of t*e eriod:

(1) *en after t*e obligation *as been contracted, *e becomes insolvent, unless *egives a guaranty or security for t*e debt"

(#) *en *e does not furnis* to t*e creditor t*e guaranties or securities !*ic* *e

*as romised"

(%) *en by *is o!n acts *e *as imaired said guaranties or securities after t*eirestablis*ment, and !*en t*roug* a fortuitous event t*ey disaear, unless *eimmediately gives ne! ones eually satisfactory"

() *en t*e debtor violates any underta0ing, in consideration of !*ic* t*e creditoragreed to t*e eriod"

(5) *en t*e debtor attemts to abscond. (11#-a)

@$2O; %. ' Alternative Obligations

Art. 11--. A erson alternatively bound by dierent restations s*all comletelyerform one of t*em.

2*e creditor cannot be comelled to receive art of one and art of t*e ot*erunderta0ing. (11%1)

Art. 1#++. 2*e rig*t of c*oice belongs to t*e debtor, unless it *as been eresslygranted to t*e creditor.

2*e debtor s*all *ave no rig*t to c*oose t*ose restations !*ic* are imossible,unla!ful or !*ic* could not *ave been t*e object of t*e obligation. (11%#)

Art. 1#+1. 2*e c*oice s*all roduce no eect ecet from t*e time it *as beencommunicated. (11%%)

Art. 1#+#. 2*e debtor s*all lose t*e rig*t of c*oice !*en among t*e restations!*ereby *e is alternatively bound, only one is racticable. (11%)

Art. 1#+%. f t*roug* t*e creditorGs acts t*e debtor cannot ma0e a c*oice accordingto t*e terms of t*e obligation, t*e latter may rescind t*e contract !it* damages. (n)

Art. 1#+. 2*e creditor s*all *ave a rig*t to indemnity for damages !*en, t*roug*t*e fault of t*e debtor, all t*e t*ings !*ic* are alternatively t*e object of t*e

obligation *ave been lost, or t*e comliance of t*e obligation *as becomeimossible.

2*e indemnity s*all be Bed ta0ing as a basis t*e value of t*e last t*ing !*ic*disaeared, or t*at of t*e service !*ic* last became imossible.

=amages ot*er t*an t*e value of t*e last t*ing or service may also be a!arded.(11%5a)


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Art. 1#+5. *en t*e c*oice *as been eressly given to t*e creditor, t*e obligations*all cease to be alternative from t*e day !*en t*e selection *as beencommunicated to t*e debtor.


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Art. 1#11. @olidarity may eist alt*oug* t*e creditors and t*e debtors may not bebound in t*e same manner and by t*e same eriods and conditions. (11+)

Art. 1#1#. ac* one of t*e solidary creditors may do !*atever may be useful to t*eot*ers, but not anyt*ing !*ic* may be rejudicial to t*e latter. (111a)

Art. 1#1%. A solidary creditor cannot assign *is rig*ts !it*out t*e consent of t*eot*ers. (n)

Art. 1#1. 2*e debtor may ay any one of t*e solidary creditors" but if any demand,judicial or etrajudicial, *as been made by one of t*em, ayment s*ould be made to*im. (11#a)

Art. 1#15. ;ovation, comensation, confusion or remission of t*e debt, made by anyof t*e solidary creditors or !it* any of t*e solidary debtors, s*all etinguis* t*eobligation, !it*out rejudice to t*e rovisions of Article 1#1-.

2*e creditor !*o may *ave eecuted any of t*ese acts, as !ell as *e !*o collects

t*e debt, s*all be liable to t*e ot*ers for t*e s*are in t*e obligation corresondingto t*em. (11%)

Art. 1#16. 2*e creditor may roceed against any one of t*e solidary debtors orsome or all of t*em simultaneously. 2*e demand made against one of t*em s*allnot be an obstacle to t*ose !*ic* may subseuently be directed against t*e ot*ers,so long as t*e debt *as not been fully collected. (11a)

Art. 1#17. ayment made by one of t*e solidary debtors etinguis*es t*e obligation.f t!o or more solidary debtors oer to ay, t*e creditor may c*oose !*ic* oer toaccet.

8e !*o made t*e ayment may claim from *is co'debtors only t*e s*are !*ic*corresonds to eac*, !it* t*e interest for t*e ayment already made. f t*eayment is made before t*e debt is due, no interest for t*e intervening eriod maybe demanded.

*en one of t*e solidary debtors cannot, because of *is insolvency, reimburse *iss*are to t*e debtor aying t*e obligation, suc* s*are s*all be borne by all *is co'debtors, in roortion to t*e debt of eac*. (115a)

Art. 1#1. ayment by a solidary debtor s*all not entitle *im to reimbursement from*is co'debtors if suc* ayment is made after t*e obligation *as rescribed orbecome illegal. (n)

Art. 1#1-. 2*e remission made by t*e creditor of t*e s*are !*ic* aects one of t*esolidary debtors does not release t*e latter from *is resonsibility to!ards t*e co'debtors, in case t*e debt *ad been totally aid by anyone of t*em before t*eremission !as eected. (116a)

Art. 1##+. 2*e remission of t*e !*ole obligation, obtained by one of t*e solidarydebtors, does not entitle *im to reimbursement from *is co'debtors. (n)


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Art. 1##1. f t*e t*ing *as been lost or if t*e restation *as become imossible!it*out t*e fault of t*e solidary debtors, t*e obligation s*all be etinguis*ed.

f t*ere !as fault on t*e art of any one of t*em, all s*all be resonsible to t*ecreditor, for t*e rice and t*e ayment of damages and interest, !it*out rejudice

to t*eir action against t*e guilty or negligent debtor.

f t*roug* a fortuitous event, t*e t*ing is lost or t*e erformance *as becomeimossible after one of t*e solidary debtors *as incurred in delay t*roug* t*e

judicial or etrajudicial demand uon *im by t*e creditor, t*e rovisions of t*ereceding aragra* s*all aly. (117a)

Art. 1###. A solidary debtor may, in actions Bled by t*e creditor, avail *imself of alldefenses !*ic* are derived from t*e nature of t*e obligation and of t*ose !*ic* areersonal to *im, or ertain to *is o!n s*are. it* resect to t*ose !*ic* ersonallybelong to t*e ot*ers, *e may avail *imself t*ereof only as regards t*at art of t*edebt for !*ic* t*e latter are resonsible. (11a)

@$2O; 5. ' =ivisible and ndivisible Obligations

Art. 1##%. 2*e divisibility or indivisibility of t*e t*ings t*at are t*e object ofobligations in !*ic* t*ere is only one debtor and only one creditor does not alter ormodify t*e rovisions of $*ater # of t*is 2itle. (11-)

Art. 1##. A joint indivisible obligation gives rise to indemnity for damages from t*etime anyone of t*e debtors does not comly !it* *is underta0ing. 2*e debtors !*omay *ave been ready to fulBll t*eir romises s*all not contribute to t*e indemnitybeyond t*e corresonding ortion of t*e rice of t*e t*ing or of t*e value of t*eservice in !*ic* t*e obligation consists. (115+)

Art. 1##5. >or t*e uroses of t*e receding articles, obligations to give deBnitet*ings and t*ose !*ic* are not suscetible of artial erformance s*all be deemedto be indivisible.

*en t*e obligation *as for its object t*e eecution of a certain number of days of!or0, t*e accomlis*ment of !or0 by metrical units, or analogous t*ings !*ic* byt*eir nature are suscetible of artial erformance, it s*all be divisible.

8o!ever, even t*oug* t*e object or service may be *ysically divisible, anobligation is indivisible if so rovided by la! or intended by t*e arties.

n obligations not to do, divisibility or indivisibility s*all be determined by t*ec*aracter of t*e restation in eac* articular case. (1151a)

@$2O; 6. ' Obligations !it* a enal $lause

Art. 1##6. n obligations !it* a enal clause, t*e enalty s*all substitute t*eindemnity for damages and t*e ayment of interests in case of noncomliance, ift*ere is no stiulation to t*e contrary. ;evert*eless, damages s*all be aid if t*e


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obligor refuses to ay t*e enalty or is guilty of fraud in t*e fulBllment of t*eobligation.

2*e enalty may be enforced only !*en it is demandable in accordance !it* t*erovisions of t*is $ode. (115#a)

Art. 1##7. 2*e debtor cannot eemt *imself from t*e erformance of t*e obligationby aying t*e enalty, save in t*e case !*ere t*is rig*t *as been eresslyreserved for *im. ;eit*er can t*e creditor demand t*e fulBllment of t*e obligationand t*e satisfaction of t*e enalty at t*e same time, unless t*is rig*t *as beenclearly granted *im. 8o!ever, if after t*e creditor *as decided to reuire t*efulBllment of t*e obligation, t*e erformance t*ereof s*ould become imossible!it*out *is fault, t*e enalty may be enforced. (115%a)

Art. 1##. roof of actual damages suered by t*e creditor is not necessary in ordert*at t*e enalty may be demanded. (n)

Art. 1##-. 2*e judge s*all euitably reduce t*e enalty !*en t*e rincial

obligation *as been artly or irregularly comlied !it* by t*e debtor. ven if t*ere*as been no erformance, t*e enalty may also be reduced by t*e courts if it isiniuitous or unconscionable. (115a)

Art. 1#%+. 2*e nullity of t*e enal clause does not carry !it* it t*at of t*e rincialobligation.

2*e nullity of t*e rincial obligation carries !it* it t*at of t*e enal clause. (1155)

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Art. 1#%1. Obligations are etinguis*ed:

(1) /y ayment or erformance:

(#) /y t*e loss of t*e t*ing due:

(%) /y t*e condonation or remission of t*e debt"

() /y t*e confusion or merger of t*e rig*ts of creditor and debtor"

(5) /y comensation"

(6) /y novation.

Ot*er causes of etinguis*ment of obligations, suc* as annulment, rescission,fulBllment of a resolutory condition, and rescrition, are governed else!*ere in t*is$ode. (1156a)


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@$2O; 1. ' ayment or erformance

Art. 1#%#. ayment means not only t*e delivery of money but also t*e erformance,in any ot*er manner, of an obligation. (n)

Art. 1#%%. A debt s*all not be understood to *ave been aid unless t*e t*ing or

service in !*ic* t*e obligation consists *as been comletely delivered or rendered,as t*e case may be. (1157)

Art. 1#%. f t*e obligation *as been substantially erformed in good fait*, t*eobligor may recover as t*oug* t*ere *ad been a strict and comlete fulBllment, lessdamages suered by t*e obligee. (n)

Art. 1#%5. *en t*e obligee accets t*e erformance, 0no!ing its incomletenessor irregularity, and !it*out eressing any rotest or objection, t*e obligation isdeemed fully comlied !it*. (n)

Art. 1#%6. 2*e creditor is not bound to accet ayment or erformance by a t*irderson !*o *as no interest in t*e fulBllment of t*e obligation, unless t*ere is astiulation to t*e contrary.

*oever ays for anot*er may demand from t*e debtor !*at *e *as aid, ecett*at if *e aid !it*out t*e 0no!ledge or against t*e !ill of t*e debtor, *e canrecover only insofar as t*e ayment *as been beneBcial to t*e debtor. (115a)

Art. 1#%7. *oever ays on be*alf of t*e debtor !it*out t*e 0no!ledge or againstt*e !ill of t*e latter, cannot comel t*e creditor to subrogate *im in *is rig*ts, suc*as t*ose arising from a mortgage, guaranty, or enalty. (115-a)

Art. 1#%. ayment made by a t*ird erson !*o does not intend to be reimbursedby t*e debtor is deemed to be a donation, !*ic* reuires t*e debtorGs consent. /utt*e ayment is in any case valid as to t*e creditor !*o *as acceted it. (n)

Art. 1#%-. n obligations to give, ayment made by one !*o does not *ave t*e freedisosal of t*e t*ing due and caacity to alienate it s*all not be valid, !it*outrejudice to t*e rovisions of Article 1#7 under t*e 2itle on I;atural Obligations.I(116+a)

Art. 1#+. ayment s*all be made to t*e erson in !*ose favor t*e obligation *asbeen constituted, or *is successor in interest, or any erson aut*oriEed to receive it.(116#a)

Art. 1#1. ayment to a erson !*o is incaacitated to administer *is roerty s*allbe valid if *e *as 0et t*e t*ing delivered, or insofar as t*e ayment *as beenbeneBcial to *im.

ayment made to a t*ird erson s*all also be valid insofar as it *as redounded tot*e beneBt of t*e creditor. @uc* beneBt to t*e creditor need not be roved in t*efollo!ing cases:


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(1) f after t*e ayment, t*e t*ird erson acuires t*e creditorGs rig*ts"

(#) f t*e creditor ratiBes t*e ayment to t*e t*ird erson"

(%) f by t*e creditorGs conduct, t*e debtor *as been led to believe t*at t*e t*irderson *ad aut*ority to receive t*e ayment. (116%a)

Art. 1##. ayment made in good fait* to any erson in ossession of t*e credits*all release t*e debtor. (116)

Art. 1#%. ayment made to t*e creditor by t*e debtor after t*e latter *as beenjudicially ordered to retain t*e debt s*all not be valid. (1165)

Art. 1#. 2*e debtor of a t*ing cannot comel t*e creditor to receive a dierentone, alt*oug* t*e latter may be of t*e same value as, or more valuable t*an t*at!*ic* is due.

n obligations to do or not to do, an act or forbearance cannot be substituted by

anot*er act or forbearance against t*e obligeeGs !ill. (1166a)

Art. 1#5. =ation in ayment, !*ereby roerty is alienated to t*e creditor insatisfaction of a debt in money, s*all be governed by t*e la! of sales. (n)

Art. 1#6. *en t*e obligation consists in t*e delivery of an indeterminate orgeneric t*ing, !*ose uality and circumstances *ave not been stated, t*e creditorcannot demand a t*ing of suerior uality. ;eit*er can t*e debtor deliver a t*ing ofinferior uality. 2*e urose of t*e obligation and ot*er circumstances s*all beta0en into consideration. (1167a)

Art. 1#7.


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n t*e meantime, t*e action derived from t*e original obligation s*all be *eld in t*eabeyance. (117+)

Art. 1#5+. n case an etraordinary inJation or deJation of t*e currency stiulateds*ould suervene, t*e value of t*e currency at t*e time of t*e establis*ment of t*eobligation s*all be t*e basis of ayment, unless t*ere is an agreement to t*e

contrary. (n)

Art. 1#51. ayment s*all be made in t*e lace designated in t*e obligation.

2*ere being no eress stiulation and if t*e underta0ing is to deliver a determinatet*ing, t*e ayment s*all be made !*erever t*e t*ing mig*t be at t*e moment t*eobligation !as constituted.

n any ot*er case t*e lace of ayment s*all be t*e domicile of t*e debtor.

f t*e debtor c*anges *is domicile in bad fait* or after *e *as incurred in delay, t*eadditional eenses s*all be borne by *im.

2*ese rovisions are !it*out rejudice to venue under t*e 9ules of $ourt. (1171a)

@


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agreements !*ic*, on t*e eect of t*e cession, are made bet!een t*e debtor and*is creditors s*all be governed by secial la!s. (1175a)

@


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@$2O; #. ' oss of t*e 2*ing =ue

Art. 1#6#. An obligation !*ic* consists in t*e delivery of a determinate t*ing s*allbe etinguis*ed if it s*ould be lost or destroyed !it*out t*e fault of t*e debtor, andbefore *e *as incurred in delay.*en by la! or stiulation, t*e obligor is liable even for fortuitous events, t*e loss

of t*e t*ing does not etinguis* t*e obligation, and *e s*all be resonsible fordamages. 2*e same rule alies !*en t*e nature of t*e obligation reuires t*eassumtion of ris0. (11#a)

Art. 1#6%. n an obligation to deliver a generic t*ing, t*e loss or destruction ofanyt*ing of t*e same 0ind does not etinguis* t*e obligation. (n)

Art. 1#6. 2*e courts s*all determine !*et*er, under t*e circumstances, t*e artialloss of t*e object of t*e obligation is so imortant as to etinguis* t*e obligation. (n)

Art. 1#65. *enever t*e t*ing is lost in t*e ossession of t*e debtor, it s*all beresumed t*at t*e loss !as due to *is fault, unless t*ere is roof to t*e contrary,and !it*out rejudice to t*e rovisions of article 1165. 2*is resumtion does notaly in case of eart*ua0e, Jood, storm, or ot*er natural calamity. (11%a)

Art. 1#66. 2*e debtor in obligations to do s*all also be released !*en t*e restationbecomes legally or *ysically imossible !it*out t*e fault of t*e obligor. (11a)

Art. 1#67. *en t*e service *as become so diDcult as to be manifestly beyond t*econtemlation of t*e arties, t*e obligor may also be released t*erefrom, in !*oleor in art. (n)

Art. 1#6. *en t*e debt of a t*ing certain and determinate roceeds from acriminal oense, t*e debtor s*all not be eemted from t*e ayment of its rice,!*atever may be t*e cause for t*e loss, unless t*e t*ing *aving been oered by*im to t*e erson !*o s*ould receive it, t*e latter refused !it*out justiBcation toaccet it. (115)

Art. 1#6-. 2*e obligation *aving been etinguis*ed by t*e loss of t*e t*ing, t*ecreditor s*all *ave all t*e rig*ts of action !*ic* t*e debtor may *ave against t*irdersons by reason of t*e loss. (116)

@$2O; %. ' $ondonation or 9emission of t*e =ebt

Art. 1#7+. $ondonation or remission is essentially gratuitous, and reuires t*e

accetance by t*e obligor. t may be made eressly or imliedly.One and t*e ot*er 0ind s*all be subject to t*e rules !*ic* govern inoDciousdonations. ress condonation s*all, furt*ermore, comly !it* t*e forms ofdonation. (117)

Art. 1#71. 2*e delivery of a rivate document evidencing a credit, made voluntarilyby t*e creditor to t*e debtor, imlies t*e renunciation of t*e action !*ic* t*eformer *ad against t*e latter.


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f in order to nullify t*is !aiver it s*ould be claimed to be inoDcious, t*e debtor and*is *eirs may u*old it by roving t*at t*e delivery of t*e document !as made invirtue of ayment of t*e debt. (11)

Art. 1#7#. *enever t*e rivate document in !*ic* t*e debt aears is found in t*eossession of t*e debtor, it s*all be resumed t*at t*e creditor delivered it

voluntarily, unless t*e contrary is roved. (11-)

Art. 1#7%. 2*e renunciation of t*e rincial debt s*all etinguis* t*e accessoryobligations" but t*e !aiver of t*e latter s*all leave t*e former in force. (11-+)

Art. 1#7. t is resumed t*at t*e accessory obligation of ledge *as been remitted!*en t*e t*ing ledged, after its delivery to t*e creditor, is found in t*e ossessionof t*e debtor, or of a t*ird erson !*o o!ns t*e t*ing. (11-1a)

@$2O; . ' $onfusion or Ferger of 9ig*ts

Art. 1#75. 2*e obligation is etinguis*ed from t*e time t*e c*aracters of creditorand debtor are merged in t*e same erson. (11-#a)

Art. 1#76. Ferger !*ic* ta0es lace in t*e erson of t*e rincial debtor or creditorbeneBts t*e guarantors. $onfusion !*ic* ta0es lace in t*e erson of any of t*elatter does not etinguis* t*e obligation. (11-%)

Art. 1#77. $onfusion does not etinguis* a joint obligation ecet as regards t*es*are corresonding to t*e creditor or debtor in !*om t*e t!o c*aracters concur.(11-)

@$2O; 5. ' $omensation

Art. 1#7. $omensation s*all ta0e lace !*en t!o ersons, in t*eir o!n rig*t, arecreditors and debtors of eac* ot*er. (11-5)

Art. 1#7-. n order t*at comensation may be roer, it is necessary:

(1) 2*at eac* one of t*e obligors be bound rincially, and t*at *e be at t*e sametime a rincial creditor of t*e ot*er"

(#) 2*at bot* debts consist in a sum of money, or if t*e t*ings due are consumable,t*ey be of t*e same 0ind, and also of t*e same uality if t*e latter *as been stated"

(%) 2*at t*e t!o debts be due"

() 2*at t*ey be liuidated and demandable"

(5) 2*at over neit*er of t*em t*ere be any retention or controversy, commenced byt*ird ersons and communicated in due time to t*e debtor. (11-6)


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Art. 1#+. ;ot!it*standing t*e rovisions of t*e receding article, t*e guarantormay set u comensation as regards !*at t*e creditor may o!e t*e rincialdebtor. (11-7)

Art. 1#1. $omensation may be total or artial. *en t*e t!o debts are of t*esame amount, t*ere is a total comensation. (n)

Art. 1##. 2*e arties may agree uon t*e comensation of debts !*ic* are not yetdue. (n)

Art. 1#%. f one of t*e arties to a suit over an obligation *as a claim for damagesagainst t*e ot*er, t*e former may set it o by roving *is rig*t to said damages andt*e amount t*ereof. (n)

Art. 1#. *en one or bot* debts are rescissible or voidable, t*ey may becomensated against eac* ot*er before t*ey are judicially rescinded or avoided. (n)

Art. 1#5. 2*e debtor !*o *as consented to t*e assignment of rig*ts made by a

creditor in favor of a t*ird erson, cannot set u against t*e assignee t*ecomensation !*ic* !ould ertain to *im against t*e assignor, unless t*e assignor!as notiBed by t*e debtor at t*e time *e gave *is consent, t*at *e reserved *isrig*t to t*e comensation.

f t*e creditor communicated t*e cession to *im but t*e debtor did not consentt*ereto, t*e latter may set u t*e comensation of debts revious to t*e cession,but not of subseuent ones.

f t*e assignment is made !it*out t*e 0no!ledge of t*e debtor, *e may set u t*ecomensation of all credits rior to t*e same and also later ones until *e *ad0no!ledge of t*e assignment. (11-a)

Art. 1#6. $omensation ta0es lace by oeration of la!, even t*oug* t*e debtsmay be ayable at dierent laces, but t*ere s*all be an indemnity for eenses ofec*ange or transortation to t*e lace of ayment. (11--a)

Art. 1#7. $omensation s*all not be roer !*en one of t*e debts arises from adeositum or from t*e obligations of a deositary or of a bailee in commodatum.

;eit*er can comensation be set u against a creditor !*o *as a claim for suortdue by gratuitous title, !it*out rejudice to t*e rovisions of aragra* # of Article%+1. (1#++a)

Art. 1#. ;eit*er s*all t*ere be comensation if one of t*e debts consists in civilliability arising from a enal oense. (n)

Art. 1#-. f a erson s*ould *ave against *im several debts !*ic* are suscetibleof comensation, t*e rules on t*e alication of ayments s*all aly to t*e orderof t*e comensation. (1#+1)


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Art. 1#-+. *en all t*e reuisites mentioned in Article 1#7- are resent,comensation ta0es eect by oeration of la!, and etinguis*es bot* debts to t*econcurrent amount, even t*oug* t*e creditors and debtors are not a!are of t*ecomensation. (1#+#a)

@$2O; 6. ' ;ovation

Art. 1#-1. Obligations may be modiBed by:

(1) $*anging t*eir object or rincial conditions"(#) @ubstituting t*e erson of t*e debtor"(%) @ubrogating a t*ird erson in t*e rig*ts of t*e creditor. (1#+%)

Art. 1#-#. n order t*at an obligation may be etinguis*ed by anot*er !*ic*substitute t*e same, it is imerative t*at it be so declared in uneuivocal terms, ort*at t*e old and t*e ne! obligations be on every oint incomatible !it* eac* ot*er.(1#+)

Art. 1#-%. ;ovation !*ic* consists in substituting a ne! debtor in t*e lace of t*eoriginal one, may be made even !it*out t*e 0no!ledge or against t*e !ill of t*elatter, but not !it*out t*e consent of t*e creditor. ayment by t*e ne! debtor gives*im t*e rig*ts mentioned in Articles 1#%6 and 1#%7. (1#+5a)

Art. 1#-. f t*e substitution is !it*out t*e 0no!ledge or against t*e !ill of t*edebtor, t*e ne! debtorGs insolvency or non'fulBllment of t*e obligations s*all notgive rise to any liability on t*e art of t*e original debtor. (n)

Art. 1#-5. 2*e insolvency of t*e ne! debtor, !*o *as been roosed by t*e originaldebtor and acceted by t*e creditor, s*all not revive t*e action of t*e latter againstt*e original obligor, ecet !*en said insolvency !as already eisting and of ublic0no!ledge, or 0no!n to t*e debtor, !*en t*e delegated *is debt. (1#+6a)

Art. 1#-6. *en t*e rincial obligation is etinguis*ed in conseuence of anovation, accessory obligations may subsist only insofar as t*ey may beneBt t*irdersons !*o did not give t*eir consent. (1#+7)

Art. 1#-7. f t*e ne! obligation is void, t*e original one s*all subsist, unless t*earties intended t*at t*e former relation s*ould be etinguis*ed in any event. (n)

Art. 1#-. 2*e novation is void if t*e original obligation !as void, ecet !*enannulment may be claimed only by t*e debtor or !*en ratiBcation validates acts

!*ic* are voidable. (1#+a)

Art. 1#--. f t*e original obligation !as subject to a susensive or resolutorycondition, t*e ne! obligation s*all be under t*e same condition, unless it isot*er!ise stiulated. (n)

Art. 1%++. @ubrogation of a t*ird erson in t*e rig*ts of t*e creditor is eit*er legal orconventional. 2*e former is not resumed, ecet in cases eressly mentioned in


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t*is $ode" t*e latter must be clearly establis*ed in order t*at it may ta0e eect.(1#+-a)

Art. 1%+1. $onventional subrogation of a t*ird erson reuires t*e consent of t*eoriginal arties and of t*e t*ird erson. (n)

Art. 1%+#. t is resumed t*at t*ere is legal subrogation:

(1) *en a creditor ays anot*er creditor !*o is referred, even !it*out t*edebtorGs 0no!ledge"

(#) *en a t*ird erson, not interested in t*e obligation, ays !it* t*e eress ortacit aroval of t*e debtor"

(%) *en, even !it*out t*e 0no!ledge of t*e debtor, a erson interested in t*efulBllment of t*e obligation ays, !it*out rejudice to t*e eects of confusion as tot*e latterGs s*are. (1#1+a)

Art. 1%+%. @ubrogation transfers to t*e ersons subrogated t*e credit !it* all t*erig*ts t*ereto aertaining, eit*er against t*e debtor or against t*ird erson, bet*ey guarantors or ossessors of mortgages, subject to stiulation in a conventionalsubrogation. (1#1#a)

Art. 1%+. A creditor, to !*om artial ayment *as been made, may eercise *isrig*t for t*e remainder, and *e s*all be referred to t*e erson !*o *as beensubrogated in *is lace in virtue of t*e artial ayment of t*e same credit. (1#1%)

2itle . ' $O;29A$2@

$8A29 1?;9A 9O4@O;@

Art. 1%+5. A contract is a meeting of minds bet!een t!o ersons !*ereby one binds*imself, !it* resect to t*e ot*er, to give somet*ing or to render some service.(1#5a)

Art. 1%+6. 2*e contracting arties may establis* suc* stiulations, clauses, termsand conditions as t*ey may deem convenient, rovided t*ey are not contrary tola!, morals, good customs, ublic order, or ublic olicy. (1#55a)

Art. 1%+7. nnominate contracts s*all be regulated by t*e stiulations of t*e arties,

by t*e rovisions of 2itles and of t*is /oo0, by t*e rules governing t*e mostanalogous nominate contracts, and by t*e customs of t*e lace. (n)

Art. 1%+. 2*e contract must bind bot* contracting arties" its validity orcomliance cannot be left to t*e !ill of one of t*em. (1#56a)

Art. 1%+-. 2*e determination of t*e erformance may be left to a t*ird erson,!*ose decision s*all not be binding until it *as been made 0no!n to bot*contracting arties. (n)


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Art. 1%1+. 2*e determination s*all not be obligatory if it is evidently ineuitable. nsuc* case, t*e courts s*all decide !*at is euitable under t*e circumstances. (n)

Art. 1%11. $ontracts ta0e eect only bet!een t*e arties, t*eir assigns and *eirs,ecet in case !*ere t*e rig*ts and obligations arising from t*e contract are not

transmissible by t*eir nature, or by stiulation or by rovision of la!. 2*e *eir is notliable beyond t*e value of t*e roerty *e received from t*e decedent.

f a contract s*ould contain some stiulation in favor of a t*ird erson, *e maydemand its fulBllment rovided *e communicated *is accetance to t*e obligorbefore its revocation. A mere incidental beneBt or interest of a erson is notsuDcient. 2*e contracting arties must *ave clearly and deliberately conferred afavor uon a t*ird erson. (1#57a)

Art. 1%1#. n contracts creating real rig*ts, t*ird ersons !*o come into ossessionof t*e object of t*e contract are bound t*ereby, subject to t*e rovisions of t*eFortgage a! and t*e and 9egistration a!s. (n)

Art. 1%1%. $reditors are rotected in cases of contracts intended to defraud t*em.(n)

Art. 1%1. Any t*ird erson !*o induces anot*er to violate *is contract s*all beliable for damages to t*e ot*er contracting arty. (n)

Art. 1%15. $ontracts are erfected by mere consent, and from t*at moment t*earties are bound not only to t*e fulBllment of !*at *as been eressly stiulatedbut also to all t*e conseuences !*ic*, according to t*eir nature, may be in 0eeing!it* good fait*, usage and la!. (1#5)

Art. 1%16. 9eal contracts, suc* as deosit, ledge and $ommodatum, are noterfected until t*e delivery of t*e object of t*e obligation. (n)

Art. 1%17. ;o one may contract in t*e name of anot*er !it*out being aut*oriEed byt*e latter, or unless *e *as by la! a rig*t to reresent *im.

A contract entered into in t*e name of anot*er by one !*o *as no aut*ority or legalreresentation, or !*o *as acted beyond *is o!ers, s*all be unenforceable, unlessit is ratiBed, eressly or imliedly, by t*e erson on !*ose be*alf it *as beeneecuted, before it is revo0ed by t*e ot*er contracting arty. (1#5-a)

$8A29 #@@;2A 9& $O;29A$2@

?;9A 9O4@O;@

Art. 1%1. 2*ere is no contract unless t*e follo!ing reuisites concur:

(1) $onsent of t*e contracting arties"(#) Object certain !*ic* is t*e subject matter of t*e contract"


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(%) $ause of t*e obligation !*ic* is establis*ed. (1#61)

@$2O; 1. ' $onsent

Art. 1%1-. $onsent is manifested by t*e meeting of t*e oer and t*e accetanceuon t*e t*ing and t*e cause !*ic* are to constitute t*e contract. 2*e oer must

be certain and t*e accetance absolute. A ualiBed accetance constitutes acounter'oer.

Accetance made by letter or telegram does not bind t*e oerer ecet from t*etime it came to *is 0no!ledge. 2*e contract, in suc* a case, is resumed to *avebeen entered into in t*e lace !*ere t*e oer !as made. (1#6#a)

Art. 1%#+. An accetance may be eress or imlied. (n)

Art. 1%#1. 2*e erson ma0ing t*e oer may B t*e time, lace, and manner ofaccetance, all of !*ic* must be comlied !it*. (n)

Art. 1%##. An oer made t*roug* an agent is acceted from t*e time accetance iscommunicated to *im. (n)

Art. 1%#%. An oer becomes ineective uon t*e deat*, civil interdiction, insanity,or insolvency of eit*er arty before accetance is conveyed. (n)

Art. 1%#. *en t*e oerer *as allo!ed t*e oeree a certain eriod to accet, t*eoer may be !it*dra!n at any time before accetance by communicating suc*!it*dra!al, ecet !*en t*e otion is founded uon a consideration, as somet*ingaid or romised. (n)

Art. 1%#5.


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Art. 1%%+. A contract !*ere consent is given t*roug* mista0e, violence,intimidation, undue inJuence, or fraud is voidable. (1#65a)

Art. 1%%1. n order t*at mista0e may invalidate consent, it s*ould refer to t*esubstance of t*e t*ing !*ic* is t*e object of t*e contract, or to t*ose conditions!*ic* *ave rincially moved one or bot* arties to enter into t*e contract.

Fista0e as to t*e identity or ualiBcations of one of t*e arties !ill vitiate consentonly !*en suc* identity or ualiBcations *ave been t*e rincial cause of t*econtract.

A simle mista0e of account s*all give rise to its correction. (1#66a)

Art. 1%%#. *en one of t*e arties is unable to read, or if t*e contract is in alanguage not understood by *im, and mista0e or fraud is alleged, t*e ersonenforcing t*e contract must s*o! t*at t*e terms t*ereof *ave been fully elainedto t*e former. (n)

Art. 1%%%. 2*ere is no mista0e if t*e arty alleging it 0ne! t*e doubt, contingency orris0 aecting t*e object of t*e contract. (n)

Art. 1%%. Futual error as to t*e legal eect of an agreement !*en t*e real uroseof t*e arties is frustrated, may vitiate consent. (n)

Art. 1%%5. 2*ere is violence !*en in order to !rest consent, serious or irresistibleforce is emloyed.

2*ere is intimidation !*en one of t*e contracting arties is comelled by areasonable and !ell'grounded fear of an imminent and grave evil uon *is ersonor roerty, or uon t*e erson or roerty of *is souse, descendants or

ascendants, to give *is consent.

2o determine t*e degree of intimidation, t*e age, se and condition of t*e ersons*all be borne in mind.

A t*reat to enforce oneGs claim t*roug* cometent aut*ority, if t*e claim is just orlegal, does not vitiate consent. (1#67a)

Art. 1%%6. 4iolence or intimidation s*all annul t*e obligation, alt*oug* it may *avebeen emloyed by a t*ird erson !*o did not ta0e art in t*e contract. (1#6)

Art. 1%%7. 2*ere is undue inJuence !*en a erson ta0es imroer advantage of *iso!er over t*e !ill of anot*er, deriving t*e latter of a reasonable freedom ofc*oice. 2*e follo!ing circumstances s*all be considered: t*e conBdential, family,siritual and ot*er relations bet!een t*e arties, or t*e fact t*at t*e erson allegedto *ave been unduly inJuenced !as suering from mental !ea0ness, or !asignorant or in Bnancial distress. (n)


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@$2O; %. ' $ause of $ontracts

Art. 1%5+. n onerous contracts t*e cause is understood to be, for eac* contractingarty, t*e restation or romise of a t*ing or service by t*e ot*er" in remuneratoryones, t*e service or beneBt !*ic* is remunerated" and in contracts of urebeneBcence, t*e mere liberality of t*e benefactor. (1#7)

Art. 1%51. 2*e articular motives of t*e arties in entering into a contract aredierent from t*e cause t*ereof. (n)

Art. 1%5#. $ontracts !it*out cause, or !it* unla!ful cause, roduce no eect!*atever. 2*e cause is unla!ful if it is contrary to la!, morals, good customs, ublicorder or ublic olicy. (1#75a)

Art. 1%5%. 2*e statement of a false cause in contracts s*all render t*em void, if its*ould not be roved t*at t*ey !ere founded uon anot*er cause !*ic* is true andla!ful. (1#76)

Art. 1%5. Alt*oug* t*e cause is not stated in t*e contract, it is resumed t*at iteists and is la!ful, unless t*e debtor roves t*e contrary. (1#77)

Art. 1%55. cet in cases seciBed by la!, lesion or inadeuacy of cause s*all notinvalidate a contract, unless t*ere *as been fraud, mista0e or undue inJuence. (n)

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Art. 1%56. $ontracts s*all be obligatory, in !*atever form t*ey may *ave been

entered into, rovided all t*e essential reuisites for t*eir validity are resent.8o!ever, !*en t*e la! reuires t*at a contract be in some form in order t*at it maybe valid or enforceable, or t*at a contract be roved in a certain !ay, t*atreuirement is absolute and indisensable. n suc* cases, t*e rig*t of t*e artiesstated in t*e follo!ing article cannot be eercised. (1#7a)

Art. 1%57. f t*e la! reuires a document or ot*er secial form, as in t*e acts andcontracts enumerated in t*e follo!ing article, t*e contracting arties may comeleac* ot*er to observe t*at form, once t*e contract *as been erfected. 2*is rig*tmay be eercised simultaneously !it* t*e action uon t*e contract. (1#7-a)

Art. 1%5. 2*e follo!ing must aear in a ublic document:

(1) Acts and contracts !*ic* *ave for t*eir object t*e creation, transmission,modiBcation or etinguis*ment of real rig*ts over immovable roerty" sales of realroerty or of an interest t*erein a governed by Articles 1+%, ;o. #, and 1+5"

(#) 2*e cession, reudiation or renunciation of *ereditary rig*ts or of t*ose of t*econjugal artners*i of gains"


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(%) *en t*e real agreement is void.

Art. 1%67. *en one of t*e arties *as broug*t an action to enforce t*e instrument,*e cannot subseuently as0 for its reformation.

Art. 1%6. 9eformation may be ordered at t*e instance of eit*er arty or *is

successors in interest, if t*e mista0e !as mutual" ot*er!ise, uon etition of t*einjured arty, or *is *eirs and assigns.

Art. 1%6-. 2*e rocedure for t*e reformation of instrument s*all be governed byrules of court to be romulgated by t*e @ureme $ourt.

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Art. 1%7+. f t*e terms of a contract are clear and leave no doubt uon t*e intentionof t*e contracting arties, t*e literal meaning of its stiulations s*all control.

f t*e !ords aear to be contrary to t*e evident intention of t*e arties, t*e latters*all revail over t*e former. (1#1)

Art. 1%71. n order to judge t*e intention of t*e contracting arties, t*eircontemoraneous and subseuent acts s*all be rincially considered. (1##)

Art. 1%7#. 8o!ever general t*e terms of a contract may be, t*ey s*all not beunderstood to comre*end t*ings t*at are distinct and cases t*at are dierent fromt*ose uon !*ic* t*e arties intended to agree. (1#%)

Art. 1%7%. f some stiulation of any contract s*ould admit of several meanings, its*all be understood as bearing t*at imort !*ic* is most adeuate to render iteectual. (1#)

Art. 1%7. 2*e various stiulations of a contract s*all be interreted toget*er,attributing to t*e doubtful ones t*at sense !*ic* may result from all of t*em ta0en

jointly. (1#5)

Art. 1%75. ords !*ic* may *ave dierent signiBcations s*all be understood in t*at!*ic* is most in 0eeing !it* t*e nature and object of t*e contract. (1#6)

Art. 1%76. 2*e usage or custom of t*e lace s*all be borne in mind in t*einterretation of t*e ambiguities of a contract, and s*all Bll t*e omission of

stiulations !*ic* are ordinarily establis*ed. (1#7)

Art. 1%77. 2*e interretation of obscure !ords or stiulations in a contract s*all notfavor t*e arty !*o caused t*e obscurity. (1#)

Art. 1%7. *en it is absolutely imossible to settle doubts by t*e rules establis*edin t*e receding articles, and t*e doubts refer to incidental circumstances of agratuitous contract, t*e least transmission of rig*ts and interests s*all revail. f t*e


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contract is onerous, t*e doubt s*all be settled in favor of t*e greatest recirocity ofinterests.

f t*e doubts are cast uon t*e rincial object of t*e contract in suc* a !ay t*at itcannot be 0no!n !*at may *ave been t*e intention or !ill of t*e arties, t*econtract s*all be null and void. (1#-)

Art. 1%7-. 2*e rinciles of interretation stated in 9ule 1#% of t*e 9ules of $ourts*all li0e!ise be observed in t*e construction of contracts. (n)

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Art. 1%+. $ontracts validly agreed uon may be rescinded in t*e cases establis*edby la!. (1#-+)

Art. 1%1. 2*e follo!ing contracts are rescissible:

(1) 2*ose !*ic* are entered into by guardians !*enever t*e !ards !*om t*eyreresent suer lesion by more t*an one'fourt* of t*e value of t*e t*ings !*ic* aret*e object t*ereof"

(#) 2*ose agreed uon in reresentation of absentees, if t*e latter suer t*e lesionstated in t*e receding number"

(%) 2*ose underta0en in fraud of creditors !*en t*e latter cannot in any ot*ermanner collect t*e claims due t*em"

() 2*ose !*ic* refer to t*ings under litigation if t*ey *ave been entered into by t*edefendant !it*out t*e 0no!ledge and aroval of t*e litigants or of cometent

judicial aut*ority"

(5) All ot*er contracts secially declared by la! to be subject to rescission. (1#-1a)

Art. 1%#. ayments made in a state of insolvency for obligations to !*osefulBllment t*e debtor could not be comelled at t*e time t*ey !ere eected, arealso rescissible. (1#-#)

Art. 1%%. 2*e action for rescission is subsidiary" it cannot be instituted ecet !*ent*e arty suering damage *as no ot*er legal means to obtain rearation for t*esame. (1#-)

Art. 1%. 9escission s*all be only to t*e etent necessary to cover t*e damagescaused. (n)

Art. 1%5. 9escission creates t*e obligation to return t*e t*ings !*ic* !ere t*eobject of t*e contract, toget*er !it* t*eir fruits, and t*e rice !it* its interest"conseuently, it can be carried out only !*en *e !*o demands rescission canreturn !*atever *e may be obliged to restore.


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;eit*er s*all rescission ta0e lace !*en t*e t*ings !*ic* are t*e object of t*econtract are legally in t*e ossession of t*ird ersons !*o did not act in bad fait*.

n t*is case, indemnity for damages may be demanded from t*e erson causing t*eloss. (1#-5)

Art. 1%6. 9escission referred to in ;os. 1 and # of Article 1%1 s*all not ta0e lace!it* resect to contracts aroved by t*e courts. (1#-6a)

Art. 1%7. All contracts by virtue of !*ic* t*e debtor alienates roerty bygratuitous title are resumed to *ave been entered into in fraud of creditors, !*ent*e donor did not reserve suDcient roerty to ay all debts contracted before t*edonation.

Alienations by onerous title are also resumed fraudulent !*en made by ersonsagainst !*om some judgment *as been issued. 2*e decision or attac*ment neednot refer to t*e roerty alienated, and need not *ave been obtained by t*e artysee0ing t*e rescission.

n addition to t*ese resumtions, t*e design to defraud creditors may be roved inany ot*er manner recogniEed by t*e la! of evidence. (1#-7a)

Art. 1%. *oever acuires in bad fait* t*e t*ings alienated in fraud of creditors,s*all indemnify t*e latter for damages suered by t*em on account of t*ealienation, !*enever, due to any cause, it s*ould be imossible for *im to returnt*em.

f t*ere are t!o or more alienations, t*e Brst acuirer s*all be liable Brst, and so onsuccessively. (1#-a)

Art. 1%-. 2*e action to claim rescission must be commenced !it*in four years.

>or ersons under guardians*i and for absentees, t*e eriod of four years s*all notbegin until t*e termination of t*e formerGs incaacity, or until t*e domicile of t*elatter is 0no!n. (1#--)

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Art. 1%-+. 2*e follo!ing contracts are voidable or annullable, even t*oug* t*eremay *ave been no damage to t*e contracting arties:

(1) 2*ose !*ere one of t*e arties is incaable of giving consent to a contract"

(#) 2*ose !*ere t*e consent is vitiated by mista0e, violence, intimidation, undueinJuence or fraud.

2*ese contracts are binding, unless t*ey are annulled by a roer action in court.2*ey are suscetible of ratiBcation. (n)


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Art. 1%-1. 2*e action for annulment s*all be broug*t !it*in four years.

2*is eriod s*all begin:

n cases of intimidation, violence or undue inJuence, from t*e time t*e defect of t*econsent ceases.

n case of mista0e or fraud, from t*e time of t*e discovery of t*e same.

And !*en t*e action refers to contracts entered into by minors or ot*erincaacitated ersons, from t*e time t*e guardians*i ceases. (1%+1a)Art. 1%-#. 9atiBcation etinguis*es t*e action to annul a voidable contract. (1%+-a)

Art. 1%-%. 9atiBcation may be eected eressly or tacitly. t is understood t*att*ere is a tacit ratiBcation if, !it* 0no!ledge of t*e reason !*ic* renders t*econtract voidable and suc* reason *aving ceased, t*e erson !*o *as a rig*t toinvo0e it s*ould eecute an act !*ic* necessarily imlies an intention to !aive *isrig*t. (1%11a)

Art. 1%-. 9atiBcation may be eected by t*e guardian of t*e incaacitated erson.(n)

Art. 1%-5. 9atiBcation does not reuire t*e conformity of t*e contracting arty !*o*as no rig*t to bring t*e action for annulment. (1%1#)

Art. 1%-6. 9atiBcation cleanses t*e contract from all its defects from t*e moment it!as constituted. (1%1%)

Art. 1%-7. 2*e action for t*e annulment of contracts may be instituted by all !*oare t*ereby obliged rincially or subsidiarily. 8o!ever, ersons !*o are caablecannot allege t*e incaacity of t*ose !it* !*om t*ey contracted" nor can t*ose

!*o eerted intimidation, violence, or undue inJuence, or emloyed fraud, orcaused mista0e base t*eir action uon t*ese Ja!s of t*e contract. (1%+#a)

Art. 1%-. An obligation *aving been annulled, t*e contracting arties s*all restoreto eac* ot*er t*e t*ings !*ic* *ave been t*e subject matter of t*e contract, !it*t*eir fruits, and t*e rice !it* its interest, ecet in cases rovided by la!.

n obligations to render service, t*e value t*ereof s*all be t*e basis for damages.(1%+%a)

Art. 1%--. *en t*e defect of t*e contract consists in t*e incaacity of one of t*earties, t*e incaacitated erson is not obliged to ma0e any restitution ecetinsofar as *e *as been beneBted by t*e t*ing or rice received by *im. (1%+)

Art. 1++. *enever t*e erson obliged by t*e decree of annulment to return t*et*ing can not do so because it *as been lost t*roug* *is fault, *e s*all return t*efruits received and t*e value of t*e t*ing at t*e time of t*e loss, !it* interest fromt*e same date. (1%+7a)


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Art. 111. *en t*e nullity roceeds from t*e illegality of t*e cause or object of t*econtract, and t*e act constitutes a criminal oense, bot* arties being in aridelicto, t*ey s*all *ave no action against eac* ot*er, and bot* s*all be rosecuted.Foreover, t*e rovisions of t*e enal $ode relative to t*e disosal of eects orinstruments of a crime s*all be alicable to t*e t*ings or t*e rice of t*e contract.

2*is rule s*all be alicable !*en only one of t*e arties is guilty" but t*e innocentone may claim !*at *e *as given, and s*all not be bound to comly !it* *isromise. (1%+5)

Art. 11#. f t*e act in !*ic* t*e unla!ful or forbidden cause consists does notconstitute a criminal oense, t*e follo!ing rules s*all be observed:

(1) *en t*e fault is on t*e art of bot* contracting arties, neit*er may recover!*at *e *as given by virtue of t*e contract, or demand t*e erformance of t*eot*erGs underta0ing"

(#) *en only one of t*e contracting arties is at fault, *e cannot recover !*at *e

*as given by reason of t*e contract, or as0 for t*e fulBllment of !*at *as beenromised *im. 2*e ot*er, !*o is not at fault, may demand t*e return of !*at *e *asgiven !it*out any obligation to comly *is romise. (1%+6)

Art. 11%. nterest aid in ecess of t*e interest allo!ed by t*e usury la!s may berecovered by t*e debtor, !it* interest t*ereon from t*e date of t*e ayment.

Art. 11. *en money is aid or roerty delivered for an illegal urose, t*econtract may be reudiated by one of t*e arties before t*e urose *as beenaccomlis*ed, or before any damage *as been caused to a t*ird erson. n suc*case, t*e courts may, if t*e ublic interest !ill t*us be subserved, allo! t*e artyreudiating t*e contract to recover t*e money or roerty.

Art. 115. *ere one of t*e arties to an illegal contract is incaable of givingconsent, t*e courts may, if t*e interest of justice so demands allo! recovery ofmoney or roerty delivered by t*e incaacitated erson.

Art. 116. *en t*e agreement is not illegal er se but is merely ro*ibited, and t*ero*ibition by t*e la! is designated for t*e rotection of t*e lainti, *e may, ifublic olicy is t*ereby en*anced, recover !*at *e *as aid or delivered.

Art. 117. *en t*e rice of any article or commodity is determined by statute, orby aut*ority of la!, any erson aying any amount in ecess of t*e maimum riceallo!ed may recover suc* ecess.

Art. 11. *en t*e la! Bes, or aut*oriEes t*e Bing of t*e maimum number of*ours of labor, and a contract is entered into !*ereby a laborer underta0es to !or0longer t*an t*e maimum t*us Bed, *e may demand additional comensation forservice rendered beyond t*e time limit.


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Art. 11-. *en t*e la! sets, or aut*oriEes t*e setting of a minimum !age forlaborers, and a contract is agreed uon by !*ic* a laborer accets a lo!er !age, *es*all be entitled to recover t*e deBciency.

Art. 1#+. n case of a divisible contract, if t*e illegal terms can be searated fromt*e legal ones, t*e latter may be enforced.

Art. 1#1. 2*e defense of illegality of contract is not available to t*ird ersons!*ose interests are not directly aected.

Art. 1##. A contract !*ic* is t*e direct result of a revious illegal contract, is alsovoid and ineistent.

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intestacy from t*e estate of t*e deceased, t*e ayment is valid and cannot berescinded by t*e ayer.

Art. 1%+. *en a !ill is declared void because it *as not been eecuted inaccordance !it* t*e formalities reuired by la!, but one of t*e intestate *eirs, aftert*e settlement of t*e debts of t*e deceased, ays a legacy in comliance !it* a

clause in t*e defective !ill, t*e ayment is eective and irrevocable.

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