In this case, the Rules of Court on the foreclosure of mortgages shall apply. That which is entered into between the guarantor and the creditor benefits but does not prejudice the principal debtor. 2014. The price of securities, grain, liquids, and other things shall also be considered certain, when the price fixed is that which the thing sold would have on a definite day, or in a particular exchange or market, or when an amount is fixed above or below the price on such day, or in such exchange or market, provided said amount be certain. The ownership of the thing sold is acquired by the vendee from the moment it is delivered to him in any of the ways specified in Articles 1497 to 1501, or in any other manner signifying an agreement that the possession is transferred from the vendor to the vendee. 1364. Art. 1706. However, any partner may enter into a separate obligation to perform a partnership contract. 1724. A contract is a meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service. Apart from any such contract, express or implied, or usage of trade to the contrary, the place of delivery is the seller's place of business if he has one, and if not his residence; but in case of a contract of sale of specific goods, which to the knowledge of the parties when the contract or the sale was made were in some other place, then that place is the place of delivery. As long as one of the contracting parties does not restore what in virtue of the decree of annulment he is bound to return, the other cannot be compelled to comply with what is incumbent upon him. Art. In order that compensation may be proper, it is necessary: (1) That each one of the obligors be bound principally, and that he be at the same time a principal creditor of the other; (2) That both debts consist in a sum of money, or if the things due are consumable, they be of the same kind, and also of the same quality if the latter has been stated; (4) That they be liquidated and demandable; (5) That over neither of them there be any retention or controversy, commenced by third persons and communicated in due time to the debtor. (n). When the lessor of a house, or part thereof, used as a dwelling for a family, or when the lessor of a store, or industrial establishment, also leases the furniture, the lease of the latter shall be deemed to be for the duration of the lease of the premises. (n), Art. 1850. 1670. 2032. (n), Art. 1667. (1668a), Art. 1269. 1391. Art. (1485), Art. Where a resale is made, as authorized in this article, the buyer acquires a good title as against the original buyer. He cannot, however, directly or indirectly buy the goods. 1329. Unless otherwise agreed, where goods are sent by the seller to the buyer under circumstances in which the seller knows or ought to know that it is usual to insure, the seller must give such notice to the buyer as may enable him to insure them during their transit, and, if the seller fails to do so, the goods shall be deemed to be at his risk during such transit. (n), Art. An agreement limiting the common carrier's liability for delay on account of strikes or riots is valid. 2138. Words which may have different significations shall be understood in that which is most in keeping with the nature and object of the contract. (1108). 2253. The provisions governing warranty, contained in the Title on Sales, shall be applicable to the contract of lease. 1566. Persons who are prohibited from giving each other any donation or advantage cannot enter into universal partnership. (n) Art. 1782. 2196. (1766a), Art. 1803. (1801a). 1675. 1321. This is understood to be without prejudice to the rights of third persons who have acquired the thing, in accordance with Articles 1385 and 1388 and the Mortgage Law. 1855. In case of a divisible contract, if the illegal terms can be separated from the legal ones, the latter may be enforced. 2123. Art. (1684), Art. Art. 1376. Art. The benefit of division against the co-guarantors ceases in the same cases and for the same reasons as the benefit of excussion against the principal debtor. The depositary is liable for the loss of the thing through a fortuitous event: (2) If he uses the thing without the depositor's permission; (4) If he allows others to use it, even though he himself may have been authorized to use the same. 2232. Should fungible things be sold for a price fixed according to weight, number, or measure, the risk shall not be imputed to the vendee until they have been weighed, counted, or measured and delivered, unless the latter has incurred in delay. Art. 1688. If the shipper or owner merely contributed to the loss, destruction or deterioration of the goods, the proximate cause thereof being the negligence of the common carrier, the latter shall be liable in damages, which however, shall be equitably reduced. If a guaranty is entered into without the knowledge or consent, or against the will of the principal debtor, the provisions of Articles 1236 and 1237 shall apply. 1753. 1582. (1803), Art. 1747. It is disputably presumed that a driver was negligent, if he had been found guilty or reckless driving or violating traffic regulations at least twice within the next preceding two months. If the hidden defect of animals, even in case a professional inspection has been made, should be of such a nature that expert knowledge is not sufficient to discover it, the defect shall be considered as redhibitory. If the obligor delays, or has promised to deliver the same thing to two or more persons who do not have the same interest, he shall be responsible for any fortuitous event until he has effected the delivery. The responsibility of two or more agents, even though they have been appointed simultaneously, is not solidary, if solidarity has not been expressly stipulated. (n). The following must appear in a public document: (1) Acts and contracts which have for their object the creation, transmission, modification or extinguishment of real rights over immovable property; sales of real property or of an interest therein a governed by Articles 1403, No. Art. 1372. 1685. 1279. When dissolution is caused in contravention of the partnership agreement the rights of the partners shall be as follows: (1) Each partner who has not caused dissolution wrongfully shall have: (b) The right, as against each partner who has caused the dissolution wrongfully, to damages breach of the agreement. (n), Art. (n), Art. A limited partnership formed under the law prior to the effectivity of this Code, may become a limited partnership under this Chapter by complying with the provisions of Article 1844, provided the certificate sets forth: (1) The amount of the original contribution of each limited partner, and the time when the contribution was made; and. The judgment or decree may be unconditional, or upon such terms and conditions as to damages, payment of the price and otherwise, as the court may deem just. Art. (1447a), Art. 1 of Article 1616. The provisions of this article shall be understood to be without prejudice to the actions between the principal and agent. The determination shall not be obligatory if it is evidently inequitable. 1949. (1308). 1442. 1963. 1925. (1752), Art. (n). Art. (1768a). 2065. Art. (n), Art. 2098. There is intimidation when one of the contracting parties is compelled by a reasonable and well-grounded fear of an imminent and grave evil upon his person or property, or upon the person or property of his spouse, descendants or ascendants, to give his consent. (1590a). Art. 1880. If the vendee has renounced the right to warranty in case of eviction, and eviction should take place, the vendor shall only pay the value which the thing sold had at the time of the eviction. (1894a). 1387. (1837). (3) Have dissolution and winding up by decree of court. (1826). If, in the case of the preceding article, there is a greater area or number in the immovable than that stated in the contract, the vendee may accept the area included in the contract and reject the rest. The usage or custom of the place shall be borne in mind in the interpretation of the ambiguities of a contract, and shall fill the omission of stipulations which are ordinarily established. 2237. 1792. When through an accident or other cause a person is injured or becomes seriously ill, and he is treated or helped while he is not in a condition to give consent to a contract, he shall be liable to pay for the services of the physician or other person aiding him, unless the service has been rendered out of pure generosity. (1479a), Art. But if a right should be declared for the first time in this Code, it shall be effective at once, even though the act or event which gives rise thereto may have been done or may have occurred under prior legislation, provided said new right does not prejudice or impair any vested or acquired right, of the same origin. The applicants, their parents or guardians shall not be required to exhibit their residence certificates in any formality in … 1571. (1761), Art. a. (n), Art. 1300. (2) That the property of the partnership exceeds the amount sufficient to discharge its liabilities to persons not claiming as general or limited partners by an amount greater than the sum of the contributions of its limited partners. The designation of losses and profits cannot be intrusted to one of the partners. (1550), Art. (1114), Art. 2228. (n), Art. The creditor shall take care of the thing pledged with the diligence of a good father of a family; he has a right to the reimbursement of the expenses made for its preservation, and is liable for its loss or deterioration, in conformity with the provisions of this Code. The interest may be redeemed with the separate property of any general partner, but may not be redeemed with partnership property. (n). If, however, the buyer has used or disposed of the goods delivered before he knows that the seller is not going to perform his contract in full, the buyer shall not be liable for more than the fair value to him of the goods so received. 1893. (1846), Art. In every case, the courts shall determine such period as may under the circumstances have been probably contemplated by the parties. (1128a). The debtor cannot exempt himself from the performance of the obligation by paying the penalty, save in the case where this right has been expressly reserved for him. Art. 1209. But, if except for the form of the bill of lading, the ownership would have passed to the buyer on shipment of the goods, the seller's property in the goods shall be deemed to be only for the purpose of securing performance by the buyer of his obligations under the contract. 2089. The agency shall remain in full force and effect even after the death of the principal, if it has been constituted in the common interest of the latter and of the agent, or in the interest of a third person who has accepted the stipulation in his favor. The reduction of fare does not justify any limitation of the common carrier's liability. If the certificate contains a false statement, one who suffers loss by reliance on such statement may hold liable any party to the certificate who knew the statement to be false: (1) At the time he signed the certificate, or. As for the profits, the industrial partner shall receive such share as may be just and equitable under the circumstances. For the purposes of the preceding articles, obligations to give definite things and those which are not susceptible of partial performance shall be deemed to be indivisible. Unless there is a stipulation to the contrary, the depositary may commingle grain or other articles of the same kind and quality, in which case the various depositors shall own or have a proportionate interest in the mass. The defendant vendee shall ask, within the time fixed in the Rules of Court for answering the complaint, that the vendor be made a co-defendant. 1241. Once the consignation has been duly made, the debtor may ask the judge to order the cancellation of the obligation. 1211. In ejectment cases where an appeal is taken the remedy granted in Article 539, second paragraph, shall also apply, if the higher court is satisfied that the lessee's appeal is frivolous or dilatory, or that the lessor's appeal is prima facie meritorious. If any other bid is accepted, the pledgee is deemed to have been received the purchase price, as far as the pledgor or owner is concerned. The husband and the wife cannot sell property to each other, except: (1) When a separation of property was agreed upon in the marriage settlements; or, (2) When there has been a judicial separation or property under Article 191. In any other case the place of payment shall be the domicile of the debtor. In the case of a contract of sale by sample, if the seller is a dealer in goods of that kind, there is an implied warranty that the goods shall be free from any defect rendering them unmerchantable which would not be apparent on reasonable examination of the sample. (1719), Art. (1827a), Art. If it is the husband who is insolvent, the administration of the conjugal partnership of absolute community may, by order of the court, be transferred to the wife or to a third person other than the assignee. 1586. 1550. In both cases the lessee shall be liable for the damages which, through his negligence, may be suffered by the proprietor. (n), Art. He shall not, however, cause any more impairment upon the property leased than is necessary. (1174a). Art. All services which are not contrary to law, morals, good customs, public order or public policy may likewise be the object of a contract. 1420. In no case may a partner who has begun to execute the decision of the third person, or who has not impugned the same within a period of three months from the time he had knowledge thereof, complain of such decision. 1536. (1297a). It is not necessary that such damages have been foreseen or could have reasonably been foreseen by the defendant. Art. (n). Art. In the adjudication of moral damages, the sentimental value of property, real or personal, may be considered. In case of death of or injuries to passengers, common carriers are presumed to have been at fault or to have acted negligently, unless they prove that they observed extraordinary diligence as prescribed in Articles 1733 and 1755. (n), Art. 1288. 2163. Art. The debtor who has consented to the assignment of rights made by a creditor in favor of a third person, cannot set up against the assignee the compensation which would pertain to him against the assignor, unless the assignor was notified by the debtor at the time he gave his consent, that he reserved his right to the compensation. 1696. 1213. 1441. REPUBLIC ACT NO. Book IV: Civil Code of the Philippines ni thebeststar. The thing deposited must be returned to the depositor upon demand, even though a specified period or time for such return may have been fixed. 1716. Art. Art. 2000. If the law requires a document or other special form, as in the acts and contracts enumerated in the following article, the contracting parties may compel each other to observe that form, once the contract has been perfected. (1098), Art. This liability of the common carriers does not cease upon proof that they exercised all the diligence of a good father of a family in the selection and supervision of their employees. If the debtor changes his domicile in bad faith or after he has incurred in delay, the additional expenses shall be borne by him. The courts shall also fix the duration of the period when it depends upon the will of the debtor. 1801. A person may be a general partner and a limited partner in the same partnership at the same time, provided that this fact shall be stated in the certificate provided for in Article 1844. - NATURAL OBLIGATIONS Art. This responsibility shall cease only in case the damage should come from force majeure or from the fault of the person who has suffered damage. 1950. When the law fixes, or authorizes the fixing of the maximum number of hours of labor, and a contract is entered into whereby a laborer undertakes to work longer than the maximum thus fixed, he may demand additional compensation for service rendered beyond the time limit. (1875a), Art. 2094. (1807a), Art. (3) The certificate is cancelled or so amended as to set forth the withdrawal or reduction. The requisite that a thing be determinate is satisfied if at the time the contract is entered into, the thing is capable of being made determinate without the necessity of a new or further agreement between the parties. A compromise between the creditor and the principal debtor benefits the guarantor but does not prejudice him. (1565), Art. The contract of pledge or mortgage may secure all kinds of obligations, be they pure or subject to a suspensive or resolutory condition. Such benefit to the creditor need not be proved in the following cases: (1) If after the payment, the third person acquires the creditor's rights; (2) If the creditor ratifies the payment to the third person; (3) If by the creditor's conduct, the debtor has been led to believe that the third person had authority to receive the payment. Any person who is forbidden from receiving any donation under Article 739 cannot be named beneficiary of a life insurance policy by the person who cannot make any donation to him, according to said article. 2099. In the latter case, the court shall reduce the loss to the proper sum. The creditors, after having pursued the property in possession of the debtor to satisfy their claims, may exercise all the rights and bring all the actions of the latter for the same purpose, save those which are inherent in his person; they may also impugn the acts which the debtor may have done to defraud them. (3) Those where both parties are incapable of giving consent to a contract. 2240. 1424. Failure to disclose facts, when there is a duty to reveal them, as when the parties are bound by confidential relations, constitutes fraud. (1558a). The inheritance of those who, with or without a will, die after the beginning of the effectivity of this Code, shall be adjudicated and distributed in accordance with this new body of laws and by the Rules of Court; but the testamentary provisions shall be carried out insofar as they may be permitted by this Code. He who in good faith accepts an undue payment of a thing certain and determinate shall only be responsible for the impairment or loss of the same or its accessories and accessions insofar as he has thereby been benefited. If the latter should suffer any damage by reason of the withdrawal, the agent must indemnify him therefor, unless the agent should base his withdrawal upon the impossibility of continuing the performance of the agency without grave detriment to himself. Art. Laws shall take effect after fifteen days following the completion of their publication in the Official Gazette, unless it is otherwise . 1649. 1872. 1808. (1494a). In case of doubt, all labor legislation and all labor contracts shall be construed in favor of the safety and decent living for the laborer. (n), Art. Art. It is not essential to the validity of resale that notice of an intention to resell the goods be given by the seller to the original buyer. Art. (n). When the capital or a part thereof which a partner is bound to contribute consists of goods, their appraisal must be made in the manner prescribed in the contract of partnership, and in the absence of stipulation, it shall be made by experts chosen by the partners, and according to current prices, the subsequent changes thereof being for account of the partnership. If the time and place should not have been stipulated, the payment must be made at the time and place of the delivery of the thing sold. Creditors and all other persons interested in making the prescription effective may avail themselves thereof notwithstanding the express or tacit renunciation by the debtor or proprietor. (1889a). 1456. Therefore, legitimes, betterments, legacies and bequests shall be respected; however, their amount shall be reduced if in no other manner can every compulsory heir be given his full share according to this Code. The employer is also liable for compensation if the employee contracts any illness or disease caused by such employment or as the result of the nature of the employment. Nothing in this Chapter shall be held to deprive a limited partner of his statutory exemption. An agent shall not carry out an agency if its execution would manifestly result in loss or damage to the principal. Art. (n), Art. In order that mistake may invalidate consent, it should refer to the substance of the thing which is the object of the contract, or to those conditions which have principally moved one or both parties to enter into the contract. The income corresponding to the year in which the person enjoying it dies shall be paid in proportion to the days during which he lived; if the income should be paid by installments in advance, the whole amount of the installment which began to run during his life shall be paid. (1710a), Art. 2260. Common carriers, from the nature of their business and for reasons of public policy, are bound to observe extraordinary diligence in the vigilance over the goods and for the safety of the passengers transported by them, according to all the circumstances of each case. 1750. 2168. 2208. The hotel-keeper is liable for the vehicles, animals and articles which have been introduced or placed in the annexes of the hotel. (1891a). 1473. In contracts and quasi-contracts, the damages for which the obligor who acted in good faith is liable shall be those that are the natural and probable consequences of the breach of the obligation, and which the parties have foreseen or could have reasonably foreseen at the time the obligation was constituted. (n), Art. The creditor does not acquire the ownership of the real estate for non-payment of the debt within the period agreed upon. This same presumption exists if the thing pledged is in the possession of a third person who has received it from the pledgor or owner after the constitution of the pledge. (n). Book IV: Civil Code of the Philippines Table of contents ... seller's property in the goods shall be deemed to be only for the purpose of securing performance by the buyer of his obligations under the contract. Art. (1259a). Compensation for workmen and other employees in case of death, injury or illness is regulated by special laws. A person who for value negotiates or transfers a document of title by endorsement or delivery, including one who assigns for value a claim secured by a document of title unless a contrary intention appears, warrants: (2) That he has a legal right to negotiate or transfer it; (3) That he has knowledge of no fact which would impair the validity or worth of the document; and, (4) That he has a right to transfer the title to the goods and that the goods are merchantable or fit for a particular purpose, whenever such warranties would have been implied if the contract of the parties had been to transfer without a document of title the goods represented thereby. (1750a). In this case the proprietor shall pay the heirs of the contractor in proportion to the price agreed upon, the value of the part of the work done, and of the materials prepared, provided the latter yield him some benefit. An extension granted to the debtor by the creditor without the consent of the guarantor extinguishes the guaranty. Art. Art. Natural obligations, not being based on positive law but on equity and natural law, do not grant a right of action to enforce their performance, but after voluntary fulfillment by the obligor, they authorize the retention of what has been delivered or rendered by reason thereof. No action can be maintained by the winner for the collection of what he has won in a game of chance. 2222. 2022. 2143. 1487. Art. 1408. 2009. Art. A solidary creditor cannot assign his rights without the consent of the others. 1174. (1581a), Art. Art. 1378. If the doubts are cast upon the principal object of the contract in such a way that it cannot be known what may have been the intention or will of the parties, the contract shall be null and void. A conveyance by a partner of his whole interest in the partnership does not of itself dissolve the partnership, or, as against the other partners in the absence of agreement, entitle the assignee, during the continuance of the partnership, to interfere in the management or administration of the partnership business or affairs, or to require any information or account of partnership transactions, or to inspect the partnership books; but it merely entitles the assignee to receive in accordance with his contract the profits to which the assigning partner would otherwise be entitled. 1460. The same rule applies to any amount he may have taken from the partnership coffers, and his liability shall begin from the time he converted the amount to his own use. 1793. 1905. 1779. 1748. Art. There being no express stipulation and if the undertaking is to deliver a determinate thing, the payment shall be made wherever the thing might be at the moment the obligation was constituted. I OBLIGATIONS CHAPTER 1 - GENERAL PROVISIONS Art. If the vendor acted in bad faith, he shall pay damages to the vendee. (1167a), Art. Real contracts, such as deposit, pledge and Commodatum, are not perfected until the delivery of the object of the obligation. (1778), Art. (1268), Art. (n). 2145. When a person, by words spoken or written or by conduct, represents himself, or consents to another representing him to anyone, as a partner in an existing partnership or with one or more persons not actual partners, he is liable to any such persons to whom such representation has been made, who has, on the faith of such representation, given credit to the actual or apparent partnership, and if he has made such representation or consented to its being made in a public manner he is liable to such person, whether the representation has or has not been made or communicated to such person so giving credit by or with the knowledge of the apparent partner making the representation or consenting to its being made: (1) When a partnership liability results, he is liable as though he were an actual member of the partnership; (2) When no partnership liability results, he is liable pro rata with the other persons, if any, so consenting to the contract or representation as to incur liability, otherwise separately. A creditor, to whom partial payment has been made, may exercise his right for the remainder, and he shall be preferred to the person who has been subrogated in his place in virtue of the partial payment of the same credit. (1532a), Art. 1479. (n), Art. Art. (n), Art. REX Book Store Inc. REX Knowledge Center, 109 Sen M Cuenco Sr, Quezon City, 1114 Metro Manila, PH Whenever the person obliged by the decree of annulment to return the thing can not do so because it has been lost through his fault, he shall return the fruits received and the value of the thing at the time of the loss, with interest from the same date. A limited partner may have the partnership dissolved and its affairs wound up when: (1) He rightfully but unsuccessfully demands the return of his contribution, or. If the same thing should have been sold to different vendees, the ownership shall be transferred to the person who may have first taken possession thereof in good faith, if it should be movable property. 1896. Neither can compensation be set up against a creditor who has a claim for support due by gratuitous title, without prejudice to the provisions of paragraph 2 of Article 301. 1305. In the cases mentioned in Nos. (1497a), Art. (n). Legal Basis for Rescission of Contracts in the Philippine Civil Code. Course. (n), Art. (n), Art. In case of fraud, bad faith, malice or wanton attitude, the obligor shall be responsible for all damages which may be reasonably attributed to the non-performance of the obligation. The vendor who recovers the thing sold shall receive it free from all charges or mortgages constituted by the vendee, but he shall respect the leases which the latter may have executed in good faith, and in accordance with the custom of the place where the land is situated. (1113), Art. 1351. Where the buyer is entitled to rescind the sale and elects to do so, if the seller refuses to accept an offer of the buyer to return the goods, the buyer shall thereafter be deemed to hold the goods as bailee for the seller, but subject to a lien to secure payment of any portion of the price which has been paid, and with the remedies for the enforcement of such lien allowed to an unpaid seller by Article 1526. Contracts covered by the Statute of Frauds – requires written evidence, note or memorandum to prove their existence b. Art. (n), Art. 1340. If the depositor should lose his capacity to contract after having made the deposit, the thing cannot be returned except to the persons who may have the administration of his property and rights. The provisions of this article are subject to any usage of trade, special agreement, or course of dealing between the parties. 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