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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 fromla! are not resumed. Only t*ose
eressly determined in t*is $ode or
in secial la!s are demandable, ands*all be regulated by t*e recets of
t*e la! !*ic* establis*es t*em" andas to !*at *as not been foreseen, by
t*e rovisions of t*is /oo0. (1+-+)
Art. 115-. Obligations arising from
contracts *ave t*e force of la!bet!een t*e contracting arties and
s*ould be comlied !it* in good
fait*. (1+-1a)
Art. 116+. Obligations derived fromuasi'contracts s*all be subject to
t*e rovisions of $*ater 1, 2itle34, of t*is /oo0. (n)
Art. 1161. $ivil obligations arising
from criminal offenses s*all begoverned by t*e enal la!s, subject
to t*e rovisions of Article #177, andof t*e ertinent rovisions of
$*ater #, reliminary 2itle, on
uman 8elations, and of 2itle 34of t*is /oo0, regulating damages.
(1+-#a)
Art. 116#. Obligations derived from
uasi'delicts s*all be governed byt*e rovisions of $*ater #, 2itle
34 of t*is /oo0, and by secialla!s. (1+-%a)
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Art. 116%. 9very erson obliged togive somet*ing is also obliged to
ta0e care of it !it* t*e roerdiligence of a good fat*er of a
family, unless t*e la! or t*e
stiulation of t*e arties reuiresanot*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*e obligation to deliver it ariseso!ever, *e s*all acuire no rea
rig*t over it until t*e same *as beendelivered to *im. (1+-5)
Art. 1165. @*en !*at is to bedelivered is a determinate t*ing, t*e
creditor, in addition to t*e rig*tgranted *im by Article 117+, may
comel t*e debtor to ma0e t*e
delivery.f t*e t*ing is indeterminate or
generic, *e may as0 t*at t*eobligation 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 more ersons !*o do not*ave t*e same interest, *e s*all be
resonsible for any fortuitous eventuntil *e *as effected t*e delivery.
(1+-6)
Art. 1166. 2*e obligation to give a
determinate t*ing includes t*at of
delivering all its accessions andaccessories, even t*oug* t*ey may
not *ave been mentioned. (1+-7a)
Art. 1167. f a erson obliged to dosomet*ing fails to do it, t*e same
s*all be eecuted at *is cost.
2*is same rule s*all be observed if*e does it in contravention of t*e
tenor of t*e obligation. =urt*ermore,
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it may be decreed t*at !*at *as
been oorly done be undone. (1+-)
Art. 116. @*en t*e obligation
consists in not doing, and t*e obligordoes !*at *as been forbidden *im, it
s*all also be undone at *is eense.(1+--a)
Art. 116-. 2*ose obliged to deliver orto do somet*ing incur in delay from
t*e time t*e obligee judicially oretrajudicially demands from t*em
t*e fulfillment of t*eir obligation.
o!ever, t*e demand by t*e creditors*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 andt*e circumstances of t*e
obligation it aears t*at t*edesignation of t*e time !*en
t*e t*ing is to be delivered or
t*e service is to be rendered!as a controlling motive for t*e
establis*ment of t*e contract"or
(%) @*en demand !ould beuseless, as !*en t*e obligor
*as rendered it beyond *is
o!er to erform.n recirocal obligations, neit*er
arty incurs in delay if t*e ot*erdoes not comly or is not ready to
comly in a roer manner !it*
!*at is incumbent uon *im. =romt*e moment one of t*e arties fulfills
*is obligation, delay by t*e ot*er
begins. (11++a)
Art. 117+. 2*ose !*o in t*eerformance 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)Art. 1171. 8esonsibility arising
from fraud is demandable in all
obligations. Any !aiver of an action
for future fraud is void. (11+#a)
Art. 117#. 8esonsibility arising
from negligence in t*e erformanceof every 0ind of obligation is also
demandable, but suc* liability maybe regulated by t*e courts,
according to t*e circumstances
(11+%)
Art. 117%. 2*e fault or negligence oft*e obligor consists in t*e omission
of t*at diligence !*ic* is reuired by
t*e nature of t*e obligation andcorresonds !it* t*e circumstances
of t*e ersons, of t*e time and of t*elace. @*en negligence s*o!s bad
fait*, t*e rovisions of Articles 1171and ##+1, aragra* #, s*all aly.f t*e la! or contract does not state
t*e diligence !*ic* is to be observedin t*e erformance, t*at !*ic* is
eected of a good fat*er of a family
s*all be reuired. (11+a)
Art. 117. 9cet in cases eresslysecified by t*e la!, or !*en it is
ot*er!ise declared 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*oseevents !*ic* could not be foreseen,
or !*ic*, t*oug* foreseen, !ereinevitable. (11+5a)
Art. 1175. ;surious transactionss*all be governed by secial la!s
(n)
Art. 1176. 2*e receit of t*e
rincial by t*e creditor !it*outreservation !it* resect to t*e
interest, s*all give rise to t*eresumtion t*at said interest *as
been aid.
2*e receit of a later installment of adebt !it*out reservation as to rior
installments, s*all li0e!ise raise t*e
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resumtion t*at suc* installments
*ave been aid. (111+a)
Art. 1177. 2*e creditors, after *aving
ursued t*e roerty in ossessionof t*e debtor to satisfy t*eir claims,
may eercise all t*e rig*ts and bringall t*e actions of t*e latter for t*e
same urose, save t*ose !*ic* are
in*erent in *is erson" t*ey may alsoimugn t*e acts !*ic* t*e debtor
may *ave done to defraud t*em.(1111)
Art. 117. ?ubject to t*e la!s, allrig*ts acuired in virtue of an
obligation are transmissible, if t*ere*as been no stiulation to t*e
contrary. (111#)
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Art. 117. 2*e effects of a
conditional obligation to give, once
t*e condition *as been fulfilled, s*allretroact to t*e day of t*e
constitution of t*e obligation.evert*eless, !*en t*e obligation
imoses recirocal restations uont*e arties, t*e fruits and interests
during t*e endency of t*e condition
s*all be deemed to *ave beenmutually comensated. f t*e
obligation is unilateral, t*e debtors*all aroriate t*e fruits and
interests received, unless from t*e
nature and circumstances of t*eobligation it s*ould be inferred t*at
t*e intention of t*e ersonconstituting t*e same !as different.
n obligations to do and not to do,t*e courts s*all determine, in eac*case, t*e retroactive effect of t*e
condition t*at *as been comlied!it*. (11#+)
Art. 11. 2*e creditor may, beforet*e fulfillment of t*e condition, bring
t*e aroriate actions for t*ereservation of *is rig*t.
2*e debtor may recover !*at duringt*e same time *e *as aid by
mista0e in case of a susensive
condition. (11#1a)
Art. 11-. @*en t*e conditions *avebeen imosed !it* t*e intention of
susending t*e efficacy of an
obligation to give, t*e follo!ingrules s*all be observed in case of t*e
imrovement, loss or deterioration
of t*e t*ing during t*e endency oft*e condition:
(1) f t*e t*ing is lost !it*outt*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*allbe obliged to ay damages" it is
understood t*at t*e t*ing is
lost !*en it eris*es, or goes
out of commerce, or disaears
in suc* a !ay t*at its eistenceis un0no!n or it cannot be
recovered"(%) @*en t*e t*ing
deteriorates !it*out t*e faultof t*e debtor, t*e imairment is
to be borne by t*e creditor"
() f it deteriorates t*roug*t*e fault of t*e debtor, t*e
creditor may c*oose bet!eent*e rescission of t*e obligation
and its fulfillment, !it*
indemnity for damages ineit*er case"
(5) f t*e t*ing is imroved byits nature, or by time, t*e
imrovement s*all inure to t*ebenefit 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 *avefor t*eir urose t*e etinguis*ment
of an obligation to give, t*e arties,uon t*e fulfillment of said
conditions, s*all return to eac* ot*er
!*at t*ey *ave received.n case of t*e loss, deterioration or
imrovement of t*e t*ing, t*erovisions !*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 secondaragra* of Article 117 s*all be
observed as regards t*e effect of t*eetinguis*ment of t*e obligation
(11#%)
Art. 11-1. 2*e o!er to rescind
obligations is imlied in recirocalones, in case one of t*e obligors
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s*ould not comly !it* !*at is
incumbent uon *im.
2*e injured arty may c*oosebet!een t*e fulfillment and t*e
rescission of t*e obligation, !it* t*eayment of damages in eit*er case.
e may also see0 rescission, evenafter *e *as c*osen fulfillment, if t*e
latter s*ould become imossible.
2*e court s*all decree t*e rescissionclaimed, unless t*ere be just cause
aut*oriBing t*e fiing of a eriod.2*is is understood to be !it*out
rejudice to t*e rig*ts of t*ird
ersons !*o *ave acuired t*et*ing, in accordance !it* Articles
1%5 and 1% and t*e Cortgagea!. (11#)
Art. 11-#. n case bot* arties *avecommitted a breac* of t*e
obligation, t*e liability of t*e firstinfractor s*all be euitably temered
by t*e courts. f it cannot be
determined !*ic* of t*e arties firstviolated t*e contract, t*e same s*all
be deemed etinguis*ed, and eac*s*all bear *is o!n damages. (n)
?9$2O #. ' Obligations !it* a
eriod
Art. 11-%. Obligations for !*ose
fulfillment a day certain *as beenfied, s*all be demandable only
!*en t*at day comes.
Obligations !it* a resolutory eriodta0e effect at once, but terminate
uon arrival of t*e day certain.
A day certain is understood to bet*at !*ic* must necessarily come,
alt*oug* it may not be 0no!n !*en.f t*e uncertainty consists in
!*et*er t*e day !ill come or not,t*e obligation is conditional, 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*e arrival of t*e daycertain, t*e rules in Article 11-
s*all be observed. (n)
Art. 11-5. Anyt*ing aid or deliveredbefore t*e arrival of t*e eriod, t*e
obligor being una!are of t*e eriod
or believing t*at t*e obligation *asbecome due and demandable, may
be recovered, !it* t*e fruits andinterests. (11#6a)
Art. 11-6. @*enever in an obligationa eriod is designated, it is
resumed to *ave been establis*edfor t*e benefit of bot* t*e creditor
and t*e debtor, unless from t*etenor of t*e same or ot*ercircumstances it s*ould aear t*at
t*e eriod *as been establis*ed infavor of one or of t*e ot*er. (11#7)
Art. 11-7. f t*e obligation does notfi a eriod, but from its nature and
t*e circumstances it can be inferredt*at a eriod !as intended, t*e
courts may fi t*e duration t*ereof.2*e courts s*all also fi t*e duration
of t*e eriod !*en it deends uon
t*e !ill of t*e debtor.n every case, t*e courts s*all
determine suc* eriod as may undert*e circumstances *ave been
robably contemlated by t*e
arties. Once fied by t*e courts, t*eeriod cannot be c*anged by t*em.
(11#a)
Art. 11-. 2*e debtor s*all lose
every rig*t to ma0e use of t*eeriod:
(1) @*en after t*e obligation *asbeen contracted, *e becomes
insolvent, unless *e gives a guaranty
or security for t*e debt"
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(#) @*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 orsecurities after t*eir establis*ment,
and !*en t*roug* a fortuitous eventt*ey disaear, unless *e
immediately gives ne! ones eually
satisfactory"() @*en t*e debtor violates any
underta0ing, in consideration of!*ic* t*e creditor agreed to t*e
eriod"
(5) @*en t*e debtor attemts toabscond. (11#-a)
?9$2O %. ' Alternative Obligations
Art. 11--. A erson alternativelybound by different restations s*all
comletely erform one of t*em.2*e creditor cannot be comelled to
receive art of one and art of t*e
ot*er underta0ing. (11%1)
Art. 1#++. 2*e rig*t of c*oicebelongs to t*e debtor, unless it *as
been eressly granted to t*ecreditor.
2*e debtor s*all *ave no rig*t to
c*oose t*ose restations !*ic* areimossible, unla!ful or !*ic* could
not *ave been t*e object of t*eobligation. (11%#)
Art. 1#+1. 2*e c*oice s*all roduceno effect ecet from t*e time it *as
been communicated. (11%%)
Art. 1#+#. 2*e debtor s*all lose t*e
rig*t of c*oice !*en among t*erestations !*ereby *e is
alternatively bound, only one isracticable. (11%)
Art. 1#+%. f t*roug* t*e creditorDsacts t*e debtor cannot ma0e a
c*oice according to 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* arealternatively t*e object of t*e
obligation *ave been lost, or t*e
comliance of t*e obligation *asbecome imossible.
2*e indemnity s*all be fied ta0ingas a basis t*e value of t*e last t*ing
!*ic* disaeared, or t*at of t*e
service !*ic* last becameimossible.
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t*em, also !it* indemnity for
damages.
2*e same rules s*all be alied toobligations to do or not to do in case
one, some or all of t*e restationss*ould become imossible. (11%6a)
Art. 1#+6. @*en only one restation
*as been agreed uon, but t*e
obligor may render anot*er insubstitution, t*e obligation is called
facultative.2*e loss or deterioration of t*e t*ing
intended as a substitute, t*roug* t*e
negligence of t*e obligor, does notrender *im liable. /ut once t*e
substitution *as been made, t*eobligor is liable for t*e loss of t*e
substitute on account of *is delay,negligence or fraud. (n)
?9$2O . ' Eoint and ?olidaryObligations
Art. 1#+7. 2*e concurrence of t!o ormore creditors or of t!o or more
debtors in one and t*e sameobligation does not imly t*at eac*
one of t*e former *as a rig*t todemand, or t*at eac* one of t*e
latter is bound to render, entire
comliance !it* t*e restation.2*ere is a solidary liability only !*en
t*e obligation eressly so states, or!*en t*e la! or t*e nature of t*e
obligation reuires solidarity.
(11%7a)
Art. 1#+. f from t*e la!, or t*e
nature or t*e !ording of t*eobligations to !*ic* t*e receding
article refers t*e contrary does notaear, t*e credit or debt s*all be
resumed to be divided into as manys*ares as t*ere are creditors or
debtors, t*e credits or debts being
considered distinct from oneanot*er, subject to t*e 8ules of
$ourt governing t*e multilicity of
suits. (11%a)
Art. 1#+-. f t*e division isimossible, t*e rig*t of t*e creditors
may be rejudiced only by t*eircollective acts, and t*e debt can be
enforced only by roceeding againstall t*e debtors. f one of t*e latter
s*ould be insolvent, t*e ot*ers s*all
not be liable for *is s*are. (11%-)
Art. 1#1+. 2*e indivisibility of anobligation does not necessarily give
rise to solidarity. or does solidarity
of itself imly indivisibility. (n)
Art. 1#11. ?olidarity may eistalt*oug* t*e creditors and t*e
debtors may not be bound in t*esame manner and by t*e sameeriods and conditions. (11+)
Art. 1#1#. 9ac* one of t*e solidary
creditors may do !*atever may be
useful to t*e ot*ers, but notanyt*ing !*ic* may be rejudicial to
t*e latter. (111a)
Art. 1#1%. A solidary creditor cannotassign *is rig*ts !it*out t*e consent
of t*e ot*ers. (n)
Art. 1#1. 2*e debtor may ay any
one of t*e solidary creditors" but ifany 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 any of t*e solidary creditorsor !it* any of t*e solidary debtors,
s*all etinguis* t*e obligation,!it*out rejudice to t*e rovisions
of Article 1#1-.
2*e creditor !*o may *ave eecutedany of t*ese acts, as !ell as *e !*o
collects t*e debt, s*all be liable to
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t*e ot*ers for t*e s*are in t*e
obligation corresonding to t*em.
(11%)
Art. 1#16. 2*e creditor may roceedagainst any one of t*e solidary
debtors or some or all of t*emsimultaneously. 2*e demand made
against one of t*em s*all not be an
obstacle to t*ose !*ic* maysubseuently be directed against t*e
ot*ers, so long as t*e debt *as notbeen fully collected. (11a)
Art. 1#17. ayment made by one oft*e solidary debtors etinguis*es t*e
obligation. f t!o or more solidarydebtors offer to ay, t*e creditormay c*oose !*ic* offer to accet.
e !*o made t*e ayment mayclaim from *is co'debtors only t*e
s*are !*ic* corresonds to eac*,
!it* t*e interest for t*e aymentalready made. f t*e ayment is
made before t*e debt is due, nointerest for t*e intervening eriod
may be demanded.@*en one of t*e solidary debtors
cannot, because of *is insolvency,
reimburse *is s*are to t*e debtoraying 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'debtorsif suc* ayment is made after t*e
obligation *as rescribed or becomeillegal. (n)
Art. 1#1-. 2*e remission made by
t*e creditor of t*e s*are !*ic*
affects one of t*e solidary debtorsdoes 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*e remission !as effected(116a)
Art. 1##+. 2*e remission of t*e
!*ole obligation, obtained by one oft*e solidary debtors, does not entitle
*im to reimbursement from *is co'
debtors. (n)
Art. 1##1. f t*e t*ing *as been lostor if t*e restation *as become
imossible !it*out t*e fault of t*e
solidary debtors, t*e obligation s*allbe etinguis*ed.
f t*ere !as fault on t*e art of anyone of t*em, all s*all be resonsible
to t*e creditor, for t*e rice and t*eayment of damages and interest,!it*out rejudice to t*eir action
against t*e guilty or negligentdebtor.
f t*roug* a fortuitous event, t*e
t*ing is lost or t*e erformance *asbecome imossible after one of t*e
solidary debtors *as incurred indelay t*roug* t*e judicial or
etrajudicial demand uon *im byt*e creditor, t*e rovisions of t*e
receding aragra* s*all aly
(117a)
Art. 1###. A solidary debtor may, inactions filed by t*e creditor, avai
*imself of all defenses !*ic* are
derived from t*e nature of t*eobligation and of t*ose !*ic* are
ersonal to *im, or ertain to *is
o!n s*are. @it* resect to t*ose!*ic* ersonally belong to t*e
ot*ers, *e may avail *imself t*ereofonly as regards t*at art of t*e debt
for !*ic* t*e latter are resonsible.(11a)
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Art. 1##%. 2*e divisibility or
indivisibility of t*e t*ings t*at aret*e object of obligations in !*ic*
t*ere is only one debtor and onlyone creditor does not alter or modify
t*e rovisions of $*ater # of t*is2itle. (11-)
Art. 1##. A joint indivisible
obligation gives rise to indemnity fordamages from t*e time anyone of
t*e debtors does not comly !it* *isunderta0ing. 2*e debtors !*o may
*ave been ready to fulfill t*eir
romises s*all not contribute to t*eindemnity beyond t*e corresonding
ortion of t*e rice of t*e t*ing or oft*e value of t*e service in !*ic* t*e
obligation consists. (115+)Art. 1##5. =or t*e uroses of t*ereceding articles, obligations to
give definite t*ings and t*ose !*ic*are not suscetible of artial
erformance s*all be deemed to be
indivisible.@*en t*e obligation *as for its
object t*e eecution of a certainnumber of days of !or0, t*e
accomlis*ment of !or0 by metricalunits, or analogous t*ings !*ic* by
t*eir nature are suscetible of
artial erformance, it s*all bedivisible.
o!ever, even t*oug* t*e object orservice may be *ysically divisible,
an obligation is indivisible if so
rovided by la! or intended by t*earties.
n obligations not to do, divisibility
or indivisibility s*all be determinedby t*e c*aracter of t*e restation in
eac* articular case. (1151a)
?9$2O 6. ' Obligations !it* aenal $lause
Art. 1##6. n obligations !it* aenal clause, t*e enalty s*all
substitute t*e indemnity for
damages and t*e ayment of
interests in case of noncomliance, if
t*ere is no stiulation to t*econtrary. evert*eless, damages
s*all be aid if t*e obligor refuses toay t*e enalty or is guilty of fraud
in t*e fulfillment of t*e obligation.2*e enalty may be enforced only
!*en it is demandable in accordance
!it* t*e rovisions of t*is $ode(115#a)
Art. 1##7. 2*e debtor cannot eemt*imself from t*e erformance of t*e
obligation by aying t*e enalty,
save in t*e case !*ere t*is rig*t *asbeen eressly reserved for *im
eit*er can t*e creditor demand t*efulfillment of t*e obligation and t*e
satisfaction of t*e enalty at t*esame time, unless t*is rig*t *asbeen clearly granted *im. o!ever,
if after t*e creditor *as decided toreuire t*e fulfillment 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 damagessuffered by t*e creditor is not
necessary in order t*at t*e enalty
may be demanded. (n)
Art. 1##-. 2*e judge s*all euitablyreduce t*e enalty !*en t*e
rincial obligation *as been artly
or irregularly comlied !it* by t*edebtor. 9ven 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 enalclause does not carry !it* it t*at of
t*e rincial obligation.
2*e nullity of t*e rincial obligationcarries !it* it t*at of t*e enal
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clause. (1155)
$A298 932>;?C92 O= O/>A2O?
>998A 8O4?O?
Art. 1#%1. Obligations are
etinguis*ed:
(1) /y ayment orerformance:
(#) /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 mergerof t*e rig*ts of creditor and
debtor"(5) /y comensation"
(6) /y novation.Ot*er causes of etinguis*ment ofobligations, suc* as annulment,
rescission, fulfillment of a resolutorycondition, and rescrition, are
governed else!*ere in t*is $ode.
(1156a)
?9$2O 1. ' ayment orerformance
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*eobligation 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 goodfait*, t*e obligor may recover as
t*oug* t*ere *ad been a strict andcomlete fulfillment, less damages
suffered by t*e obligee. (n)
Art. 1#%5. @*en t*e obligee accets
t*e erformance, 0no!ing its
incomleteness or irregularity, and
!it*out eressing any rotest or
objection, t*e obligation is deemedfully comlied !it*. (n)
Art. 1#%6. 2*e creditor is not bound
to accet ayment or erformanceby a t*ird erson !*o *as no
interest in t*e fulfillment of t*e
obligation, unless t*ere is astiulation to t*e contrary.
@*oever ays for anot*er maydemand from t*e debtor !*at *e *as
aid, ecet t*at if *e aid !it*out
t*e 0no!ledge or against t*e !ill oft*e debtor, *e can recover only
insofar as t*e ayment *as beenbeneficial to t*e debtor. (115a)
Art. 1#%7. @*oever ays on be*alf oft*e debtor !it*out t*e 0no!ledge or
against t*e !ill of t*e latter, cannotcomel t*e creditor to subrogate *im
in *is rig*ts, suc* as t*ose arising
from a mortgage, guaranty, orenalty. (115-a)
Art. 1#%. ayment made by a t*ird
erson !*o does not intend to bereimbursed by t*e debtor is deemed
to be a donation, !*ic* reuires t*e
debtorDs consent. /ut t*e ayment isin 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 free disosal of t*e t*ing
due and caacity to alienate it s*all
not be valid, !it*out rejudice to t*erovisions of Article 1#7 under t*e
2itle on FNatural Obligations.F(116+a)
Art. 1#+. ayment s*all be made to
t*e erson in !*ose favor t*e
obligation *as been constituted, or*is successor in interest, or any
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erson aut*oriBed to receive it.
(116#a)
Art. 1#1. ayment to a erson !*o
is incaacitated to administer *isroerty s*all be valid if *e *as 0et
t*e t*ing delivered, or insofar as t*eayment *as been beneficial to *im.
ayment made to a t*ird erson
s*all also be valid insofar as it *asredounded to t*e benefit of t*e
creditor. ?uc* benefit to t*e creditorneed not be roved in t*e follo!ing
cases:
(1) f after t*e ayment, t*et*ird erson acuires t*e
creditorDs rig*ts"(#) f t*e creditor ratifies t*e
ayment to t*e t*ird erson"
(%) f by t*e creditorDs conduct,t*e debtor *as been led to
believe t*at t*e t*ird erson*ad aut*ority to receive t*e
ayment. (116%a)
Art. 1##. ayment made in good
fait* to any erson in ossession oft*e credit s*all release t*e debtor.
(116)
Art. 1#%. ayment made to t*e
creditor by t*e debtor after t*e latter*as been judicially 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 toreceive a different one, alt*oug* t*e
latter may be of t*e same value as,
or more valuable t*an t*at !*ic* isdue.
n obligations to do or not to do, anact or forbearance cannot be
substituted by anot*er act orforbearance against t*e obligeeDs
!ill. (1166a)
Art. 1#5.
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!*en t*roug* t*e fault of t*e
creditor t*ey *ave been imaired.
n t*e meantime, t*e action derivedfrom t*e original obligation s*all be
*eld in t*e abeyance. (117+)
Art. 1#5+. n case an etraordinaryinflation or deflation of t*e currency
stiulated s*ould suervene, t*e
value of t*e currency at t*e time oft*e establis*ment of t*e obligation
s*all be t*e basis of ayment, unlesst*ere is an agreement to t*e
contrary. (n)
Art. 1#51. ayment s*all be made in
t*e lace designated in t*eobligation.
2*ere being no eress stiulationand if t*e underta0ing is to deliver adeterminate t*ing, t*e ayment s*all
be made !*erever t*e t*ing mig*tbe at t*e moment t*e obligation !as
constituted.
n any ot*er case t*e lace ofayment 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 indelay, t*e additional eenses s*all
be borne by *im.
2*ese rovisions are !it*outrejudice to venue under t*e 8ules
of $ourt. (1171a)
?;/?9$2O 1. ' Alication of
ayments
Art. 1#5#. e !*o *as various debts
of t*e same 0ind in favor of one andt*e same creditor, may declare at
t*e time of ma0ing t*e ayment, to!*ic* of t*em t*e same must be
alied. ;nless t*e arties sostiulate, or !*en t*e alication of
ayment is made by t*e arty for
!*ose benefit t*e term *as beenconstituted, alication s*all not be
made as to debts !*ic* are not yet
due.
f t*e debtor accets from t*ecreditor a receit in !*ic* an
alication of t*e ayment is made,t*e former cannot comlain of t*e
same, unless t*ere is a cause forinvalidating t*e contract. (117#a)
Art. 1#5%. f t*e debt roducesinterest, ayment of t*e rincial
s*all not be deemed to *ave beenmade until t*e interests *ave been
covered. (117%)
Art. 1#5. @*en t*e ayment cannotbe alied in accordance !it* t*e
receding rules, or if alication cannot be inferred from ot*er
circumstances, t*e debt !*ic* ismost onerous to t*e debtor, amongt*ose due, s*all be deemed to *ave
been satisfied.f t*e debts due are of t*e same
nature and burden, t*e ayment
s*all be alied to all of t*emroortionately. (117a)
?;/?9$2O #. ' ayment by
$ession
Art. 1#55. 2*e debtor may cede or
assign *is roerty to *is creditorsin ayment of *is debts. 2*is
cession, unless t*ere is stiulation tot*e contrary, s*all only release t*e
debtor from resonsibility for t*e net
roceeds of t*e t*ing assigned. 2*eagreements !*ic*, on t*e effect of
t*e cession, are made bet!een t*e
debtor and *is creditors s*all begoverned by secial la!s. (1175a)
?;/?9$2O %. ' 2ender of ayment
and $onsignation
Art. 1#56. f t*e creditor to !*om
tender of ayment *as been maderefuses !it*out just cause to accet
it, t*e debtor s*all be released from
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resonsibility by t*e consignation of
t*e t*ing or sum due.
$onsignation alone s*all roduce t*esame effect in t*e follo!ing cases:
(1) @*en t*e creditor is absentor un0no!n, or does not
aear at t*e lace of ayment"(#) @*en *e is incaacitated to
receive t*e ayment at t*e time
it is due"(%) @*en, !it*out just cause,
*e refuses to give a receit"() @*en t!o or more ersons
claim t*e same rig*t to collect"
(5) @*en t*e title of t*eobligation *as been lost.
(1176a)
Art. 1#57. n order t*at t*econsignation of t*e t*ing due mayrelease t*e obligor, it must first be
announced to t*e ersons interestedin t*e fulfillment of t*e obligation.
2*e consignation s*all be ineffectual
if it is not made strictly inconsonance !it* t*e rovisions
!*ic* regulate ayment. (1177)
Art. 1#5. $onsignation s*all bemade by deositing t*e t*ings due at
t*e disosal of judicial aut*ority,
before !*om t*e tender of ayments*all be roved, in a roer case,
and t*e announcement of t*econsignation in ot*er cases.
2*e consignation *aving been made,
t*e interested arties s*all also benotified t*ereof. (117)
Art. 1#5-. 2*e eenses of
consignation, !*en roerly made,s*all be c*arged against t*e
creditor. (117)
Art. 1#6+. Once t*e consignation *asbeen duly made, t*e debtor may as0
t*e judge to order t*e cancellation of
t*e obligation./efore t*e creditor *as acceted t*e
consignation, or before a judicial
declaration t*at t*e consignation *as
been roerly made, t*e debtor may
!it*dra! t*e t*ing or t*e sumdeosited, allo!ing t*e obligation to
remain in force. (11+)
Art. 1#61. f, t*e consignation*aving been made, t*e creditor
s*ould aut*oriBe t*e debtor to
!it*dra! t*e same, *e s*all loseevery reference !*ic* *e may *ave
over t*e t*ing. 2*e co'debtors,guarantors and sureties s*all be
released. (111a)
?9$2O #. ' oss of t*e 2*ing
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due to *is fault, unless t*ere is roof
to t*e contrary, and !it*out
rejudice to t*e rovisions of article1165. 2*is resumtion does not
aly in case of eart*ua0e, flood,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*erestation becomes legally or
*ysically imossible !it*out t*efault of t*e obligor. (11a)
Art. 1#67. @*en t*e service *as
become so difficult as to bemanifestly beyond t*e contemlation
of t*e arties, t*e obligor may alsobe released t*erefrom, in !*ole or in
art. (n)
Art. 1#6. @*en t*e debt of a t*ing
certain and determinate roceedsfrom a criminal offense, t*e debtor
s*all not be eemted from t*e
ayment of its rice, !*atever maybe t*e cause for t*e loss, unless t*e
t*ing *aving been offered by *im tot*e erson !*o s*ould receive it, t*e
latter refused !it*out justification toaccet it. (115)
Art. 1#6-. 2*e obligation *avingbeen etinguis*ed by t*e loss of t*e
t*ing, t*e creditor s*all *ave all t*erig*ts of action !*ic* t*e debtor
may *ave against t*ird ersons by
reason of t*e loss. (116)
?9$2O %. ' $ondonation or
8emission of t*e
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or creditor benefits t*e guarantors.
$onfusion !*ic* ta0es lace in t*e
erson of any of t*e latter does notetinguis* t*e obligation. (11-%)
Art. 1#77. $onfusion does not
etinguis* a joint obligation ecetas regards t*e s*are corresonding
to t*e creditor or debtor in !*om
t*e t!o c*aracters concur. (11-)
?9$2O 5. ' $omensation
Art. 1#7. $omensation s*all ta0e
lace !*en t!o ersons, in t*eiro!n rig*t, are creditors and debtors
of eac* ot*er. (11-5)
Art. 1#7-. n order t*atcomensation may be roer, it isnecessary:
(1) 2*at eac* one of t*eobligors be bound rincially,
and t*at *e be at t*e same time
a rincial creditor of t*eot*er"
(#) 2*at bot* debts consist in asum of money, or if t*e t*ings
due are consumable, t*ey be oft*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 anddemandable"
(5) 2*at over neit*er of t*em
t*ere be any retention orcontroversy, commenced by
t*ird ersons and
communicated in due time tot*e debtor. (11-6)
Art. 1#+. ot!it*standing t*e
rovisions of t*e receding article,t*e guarantor may 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*e same amount, t*ere is atotal comensation. (n)
Art. 1##. 2*e arties may agree
uon t*e comensation of debts!*ic* are not yet due. (n)
Art. 1#%. f one of t*e arties to a
suit over an obligation *as a claimfor damages against t*e ot*er, t*e
former may set it off by roving *isrig*t to said damages and t*e
amount t*ereof. (n)
Art. 1#. @*en one or bot* debts
are rescissible or voidable, t*ey maybe comensated against eac* ot*er
before t*ey are judicially rescindedor avoided. (n)
Art. 1#5. 2*e debtor !*o *asconsented to t*e assignment of
rig*ts made by a creditor in favor of
a t*ird erson, cannot set u againstt*e assignee t*e comensation
!*ic* !ould ertain to *im againstt*e assignor, unless t*e assignor
!as notified by t*e debtor at t*etime *e gave *is consent, t*at *e
reserved *is rig*t to t*e
comensation.f t*e creditor communicated t*e
cession to *im but t*e debtor did notconsent t*ereto, t*e latter may set
u t*e comensation of debts
revious to t*e cession, but not ofsubseuent ones.
f t*e assignment is made !it*out
t*e 0no!ledge of t*e debtor, *e mayset u t*e comensation of all
credits rior to t*e same and alsolater ones until *e *ad 0no!ledge of
t*e assignment. (11-a)
Art. 1#6. $omensation ta0es lace
by oeration of la!, even t*oug* t*edebts may be ayable at different
laces, but t*ere s*all be an
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indemnity for eenses of ec*ange
or transortation to t*e lace of
ayment. (11--a)
Art. 1#7. $omensation s*all not beroer !*en one of t*e debts arises
from a deositum or from t*eobligations of a deositary or of a
bailee in commodatum.
eit*er can comensation be set uagainst a creditor !*o *as a claim
for suort due 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 becomensation if one of t*e debts
consists in civil liability arising froma enal offense. (n)
Art. 1#-. f a erson s*ould *aveagainst *im several debts !*ic* are
suscetible of comensation, t*e
rules on t*e alication of aymentss*all aly to t*e order of t*e
comensation. (1#+1)
Art. 1#-+. @*en all t*e reuisitesmentioned in Article 1#7- are
resent, comensation ta0es effect
by oeration of la!, andetinguis*es bot* debts to t*e
concurrent amount, even t*oug* t*ecreditors and debtors are not a!are
of t*e comensation. (1#+#a)
?9$2O 6. ' ovation
Art. 1#-1. Obligations may bemodified by:
(1) $*anging t*eir object orrincial conditions"
(#) ?ubstituting t*e erson oft*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 isimerative t*at it be so declared in
uneuivocal terms, or t*at t*e oldand t*e ne! obligations be on every
oint incomatible !it* eac* ot*er.(1#+)
Art. 1#-%. ovation !*ic* consistsin substituting a ne! debtor in t*e
lace of t*e original one, may bemade even !it*out t*e 0no!ledge or
against t*e !ill of t*e latter, 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 Articles1#%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*e debtor, t*e ne!debtorDs insolvency or non'
fulfillment of t*e obligations s*all
not give rise to any liability on t*eart of t*e original debtor. (n)
Art. 1#-5. 2*e insolvency of t*e ne!
debtor, !*o *as been roosed byt*e original debtor and acceted by
t*e creditor, s*all not revive t*e
action of t*e latter against t*eoriginal obligor, ecet !*en said
insolvency !as already eisting andof ublic 0no!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 inconseuence of a novation,
accessory obligations may subsistonly insofar as t*ey may benefit
t*ird ersons !*o did not give t*eirconsent. (1#+7)
Art. 1#-7. f t*e ne! obligation isvoid, t*e original one s*all subsist,
unless t*e arties intended t*at t*e
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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!*en annulment may be claimed
only by t*e debtor or !*enratification validates acts !*ic* are
voidable. (1#+a)
Art. 1#--. f t*e original obligation!as subject to a susensive or
resolutory condition, t*e ne!obligation s*all be under t*e same
condition, unless it is ot*er!ise
stiulated. (n)
Art. 1%++. ?ubrogation of a t*irderson in t*e rig*ts of t*e creditor is
eit*er legal or conventional. 2*eformer is not resumed, ecet incases eressly mentioned in t*is
$ode" t*e latter must be clearlyestablis*ed in order t*at it may ta0e
effect. (1#+-a)
Art. 1%+1. $onventional subrogation
of a t*ird erson reuires t*econsent of t*e original 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 isreferred, even !it*out t*e
debtorDs 0no!ledge"
(#) @*en a t*ird erson, notinterested in t*e obligation,
ays !it* t*e eress or tacit
aroval of t*e debtor"
(%) @*en, even !it*out t*e
0no!ledge of t*e debtor, aerson interested in t*e
fulfillment of t*e obligationays, !it*out rejudice to t*e
effects of confusion as to t*e
latterDs s*are. (1#1+a)
Art. 1%+%. ?ubrogation transfers to
t*e ersons subrogated t*e credit
!it* all t*e rig*ts t*eretoaertaining, eit*er against t*e
debtor or against t*ird erson, bet*ey guarantors or ossessors of
mortgages, subject to stiulation ina conventional subrogation. (1#1#a)
Art. 1%+. A creditor, to !*omartial ayment *as been made, may
eercise *is rig*t for t*e remainder,and *e s*all be referred to t*e
erson !*o *as been subrogated in
*is lace in virtue of t*e artialayment of t*e same credit. (1#1%)
2itle . ' $O28A$2?
$A298 1>998A 8O4?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 someservice. (1#5a)
Art. 1%+6. 2*e contracting arties
may establis* suc* stiulations,
clauses, terms and conditions ast*ey may deem convenient, rovided
t*ey are not contrary to la!, 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 of2itles and of t*is /oo0, by t*e
rules governing t*e most analogousnominate contracts, and by t*e
customs of t*e lace. (n)
Art. 1%+. 2*e contract must bind
bot* contracting arties" its validityor comliance cannot be left to t*e
!ill of one of t*em. (1#56a)
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Art. 1%+-. 2*e determination of t*e
erformance may be left to a t*ird
erson, !*ose decision s*all not bebinding until it *as been made
0no!n to bot* contracting arties.(n)
Art. 1%1+. 2*e determination s*allnot be obligatory if it is evidently
ineuitable. n suc* case, t*e courts
s*all decide !*at is euitable undert*e circumstances. (n)
Art. 1%11. $ontracts ta0e effect onlybet!een t*e arties, t*eir assigns
and *eirs, ecet in case !*ere t*e
rig*ts and obligations arising fromt*e contract are not transmissible by
t*eir nature, or by stiulation or byrovision of la!. 2*e *eir is not
liable beyond t*e value of t*eroerty *e received from t*edecedent.
f a contract s*ould contain somestiulation in favor of a t*ird erson,
*e may demand its fulfillment
rovided *e communicated *isaccetance to t*e obligor before its
revocation. A mere incidental benefitor interest of a erson is not
sufficient. 2*e contracting artiesmust *ave clearly and deliberately
conferred a favor uon a t*ird
erson. (1#57a)Art. 1%1#. n contracts creating real
rig*ts, t*ird ersons !*o come intoossession of t*e object of t*e
contract are bound t*ereby, subject
to t*e rovisions of t*e Cortgagea! and t*e and 8egistration a!s.
(n)
Art. 1%1%. $reditors are rotected incases of contracts intended to
defraud t*em. (n)Art. 1%1. Any t*ird erson !*o
induces anot*er to violate *iscontract s*all be liable for damages
to t*e ot*er contracting arty. (n)
Art. 1%15. $ontracts are erfected bymere consent, and from t*at
moment t*e arties are bound not
only to t*e fulfillment of !*at *as
been eressly stiulated but also to
all t*e conseuences !*ic*,according to t*eir nature, may be in
0eeing !it* good fait*, usage andla!. (1#5)
Art. 1%16. 8eal contracts, suc* asdeosit, ledge and $ommodatum,
are not erfected 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 beingaut*oriBed by t*e latter, or unless *e
*as by la! a rig*t to reresent *im.
A contract entered into in t*e nameof anot*er by one !*o *as no
aut*ority or legal reresentation, or!*o *as acted beyond *is o!ers,
s*all be unenforceable, unless it isratified, eressly or imliedly, byt*e erson on !*ose be*alf it *as
been eecuted, before it is revo0edby t*e ot*er contracting arty.
(1#5-a)
$A298 #
9??92A 89&;?29? O=$O28A$2?
>998A 8O4?O?
Art. 1%1. 2*ere is no contractunless t*e follo!ing reuisites
concur:(1) $onsent of t*e contracting
arties"
(#) Object certain !*ic* is t*esubject matter of t*e contract"
(%) $ause of t*e obligation
!*ic* is establis*ed. (1#61)?9$2O 1. ' $onsent
Art. 1%1-. $onsent is manifested by
t*e meeting of t*e offer and t*eaccetance uon t*e t*ing and t*e
cause !*ic* are to constitute t*e
contract. 2*e offer must be certainand t*e accetance absolute. A
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8/3/2019 Law on OB&CON
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ualified accetance constitutes a
counter'offer.
Accetance made by letter ortelegram does not bind t*e offerer
ecet from t*e time it came to *is0no!ledge. 2*e contract, in suc* a
case, is resumed to *ave beenentered into in t*e lace !*ere t*e
offer !as made. (1#6#a)
Art. 1%#+. An accetance may beeress or imlied. (n)
Art. 1%#1. 2*e erson ma0ing t*eoffer may fi t*e time, lace, and
manner of accetance, all of !*ic*
must be comlied !it*. (n)Art. 1%##. An offer made t*roug* an
agent is acceted from t*e timeaccetance is communicated to *im.
(n)Art. 1%#%. An offer becomesineffective uon t*e deat*, civil
interdiction, insanity, or insolvencyof eit*er arty before accetance is
conveyed. (n)
Art. 1%#. @*en t*e offerer *asallo!ed t*e offeree a certain eriod
to accet, t*e offer 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*ing aid or romised. (n)Art. 1%#5. ;nless it aears
ot*er!ise, business advertisementsof t*ings for sale are not definite
offers, but mere invitations to ma0e
an offer. (n)Art. 1%#6. Advertisements for
bidders are simly invitations to
ma0e roosals, and t*e advertiseris not bound to accet t*e *ig*est or
lo!est bidder, unless t*e contraryaears. (n)
Art. 1%#7. 2*e follo!ing cannot giveconsent to a contract:
(1) ;nemanciated minors"
(#) nsane or dementedersons, and deaf'mutes !*o
do not 0no! *o! to !rite.
(1#6%a)
Art. 1%#. $ontracts entered intoduring a lucid interval are valid
$ontracts agreed to in a state ofdrun0enness or during a *ynotic
sell are voidable. (n)Art. 1%#-. 2*e incaacity declared in
Article 1%#7 is subject to t*e
modifications determined by la!,and is understood to be !it*out
rejudice to secial disualificationsestablis*ed in t*e la!s. (1#6)
Art. 1%%+. A contract !*ere consent
is given t*roug* mista0e, violence,intimidation, undue influence, or
fraud is voidable. (1#65a)Art. 1%%1. n order t*at mista0e may
invalidate consent, it s*ould refer tot*e substance of t*e t*ing !*ic* ist*e object of t*e contract, or to
t*ose conditions !*ic* *averincially moved one or bot*
arties to enter into t*e contract.
Cista0e as to t*e identity orualifications of one of t*e arties
!ill vitiate consent only !*en suc*identity or ualifications *ave been
t*e rincial cause of t*e contract.A simle mista0e of account s*all
give rise to its correction. (1#66a)
Art. 1%%#. @*en one of t*e arties isunable to read, or if t*e contract is in
a language not understood by *im,and mista0e or fraud is alleged, t*e
erson enforcing t*e contract must
s*o! t*at t*e terms t*ereof *avebeen fully elained to t*e former.
(n)
Art. 1%%%. 2*ere is no mista0e if t*earty alleging it 0ne! t*e doubt,
contingency or ris0 affecting t*eobject of t*e contract. (n)
Art. 1%%. Cutual error as to t*elegal effect of an agreement !*en
t*e real urose of t*e arties is
frustrated, may vitiate consent. (n)
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Art. 1%%5. 2*ere is violence !*en in
order to !rest consent, serious or
irresistible force is emloyed.2*ere is intimidation !*en one of
t*e contracting arties is comelledby a reasonable and !ell'grounded
fear of an imminent and grave eviluon *is erson or 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 erson s*all be
borne in mind.A t*reat to enforce oneDs claim
t*roug* cometent aut*ority, if t*eclaim is just or legal, does not vitiate
consent. (1#67a)Art. 1%%6. 4iolence or intimidations*all annul t*e obligation, alt*oug*
it may *ave been emloyed by at*ird erson !*o did not ta0e art in
t*e contract. (1#6)
Art. 1%%7. 2*ere is undue influence!*en a erson ta0es imroer
advantage of *is o!er over t*e !illof anot*er, deriving t*e latter of a
reasonable freedom of c*oice. 2*efollo!ing circumstances s*all be
considered: t*e confidential, family,
siritual and ot*er relations bet!eent*e arties, or t*e fact t*at t*e
erson alleged to *ave been undulyinfluenced !as suffering from
mental !ea0ness, or !as ignorant or
in financial distress. (n)Art. 1%%. 2*ere is fraud !*en,
t*roug* insidious !ords or
mac*inations of one of t*econtracting arties, t*e ot*er is
induced to enter into a contract!*ic*, !it*out t*em, *e !ould not
*ave agreed to. (1#6-)Art. 1%%-. =ailure to disclose facts,
!*en t*ere is a duty to reveal t*em,
as !*en t*e arties are bound byconfidential relations, constitutes
fraud. (n)
Art. 1%+. 2*e usual eaggerations
in trade, !*en t*e ot*er arty *ad
an oortunity to 0no! t*e facts, arenot in t*emselves fraudulent. (n)
Art. 1%1. A mere eression of anoinion does not signify fraud,
unless made by an eert and t*eot*er arty *as relied on t*e
formerDs secial 0no!ledge. (n)
Art. 1%#. Cisreresentation by at*ird erson does not vitiate
consent, unless suc*misreresentation *as created
substantial mista0e and t*e same is
mutual. (n)Art. 1%%. Cisreresentation made in
good fait* is not fraudulent but mayconstitute error. (n)
Art. 1%. n order t*at fraud mayma0e a contract voidable, it s*ouldbe serious and s*ould not *ave been
emloyed by bot* contractingarties.
ncidental fraud only obliges t*e
erson emloying it to ay damages.(1#7+)
Art. 1%5. ?imulation of a contractmay be absolute or relative. 2*e
former ta0es lace !*en t*e artiesdo not intend to be bound at all" t*e
latter, !*en t*e arties conceal t*eir
true agreement. (n)Art. 1%6. An absolutely simulated
or fictitious contract is void. Arelative simulation, !*en it does not
rejudice a t*ird erson and is not
intended for any urose contrary tola!, morals, good customs, ublic
order or ublic olicy binds t*e
arties to t*eir real agreement. (n)
?9$2O #. ' Object of $ontracts
Art. 1%7. All t*ings !*ic* are notoutside t*e commerce of men,
including future t*ings, may be t*e
object of a contract. All rig*ts !*ic*are not intransmissible may also be
t*e object of contracts.
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o contract may be entered into
uon future in*eritance ecet in
cases eressly aut*oriBed by la!.All services !*ic* are not contrary
to la!, morals, good customs, ublicorder or ublic olicy may li0e!ise
be t*e object of a contract. (1#71a)Art. 1%. mossible t*ings or
services cannot be t*e object of
contracts. (1#7#)Art. 1%-. 2*e object of every
contract must be determinate as toits 0ind. 2*e fact t*at t*e uantity is
not determinate s*all not be an
obstacle to t*e eistence of t*econtract, rovided it is ossible to
determine t*e same, !it*out t*eneed of a ne! contract bet!een t*e
arties. (1#7%)
?9$2O %. ' $ause of $ontracts
Art. 1%5+. n onerous contracts t*e
cause is understood to be, for eac*
contracting arty, t*e restation orromise of a t*ing or service by t*e
ot*er" in remuneratory ones, t*eservice or benefit !*ic* is
remunerated" and in contracts ofure beneficence, t*e mere liberality
of t*e benefactor. (1#7)
Art. 1%51. 2*e articular motives oft*e arties in entering into a
contract are different from t*e causet*ereof. (n)
Art. 1%5#. $ontracts !it*out cause,
or !it* unla!ful cause, roduce noeffect !*atever. 2*e cause is
unla!ful if it is contrary to la!,
morals, good customs, ublic orderor ublic olicy. (1#75a)
Art. 1%5%. 2*e statement of a falsecause in contracts s*all render t*em
void, if it s*ould not be roved t*att*ey !ere founded uon anot*er
cause !*ic* is true and la!ful.
(1#76)Art. 1%5. Alt*oug* t*e cause is not
stated in t*e contract, it is resumed
t*at it eists and is la!ful, unless
t*e debtor roves t*e contrary.
(1#77)Art. 1%55. 9cet in cases secified
by la!, lesion or inadeuacy ofcause s*all not invalidate a contract,
unless t*ere *as been fraud, mista0eor undue influence. (n)
$A298 %=O8C O= $O28A$2?
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.o!ever, !*en t*e la! reuires t*at
a contract be in some form in ordert*at it may be valid or enforceable,or t*at a contract be roved in a
certain !ay, t*at reuirement isabsolute and indisensable. n suc*
cases, t*e rig*t of t*e arties stated
in t*e follo!ing article cannot beeercised. (1#7a)
Art. 1%57. f t*e la! reuires adocument or ot*er secial form, as
in t*e acts and contractsenumerated in t*e follo!ing article,
t*e contracting arties may comel
eac* ot*er to observe t*at form,once t*e contract *as been
erfected. 2*is rig*t may beeercised simultaneously !it* t*e
action uon t*e contract. (1#7-a)
Art. 1%5. 2*e follo!ing must aearin a ublic document:
(1) Acts and contracts !*ic*
*ave for t*eir object t*ecreation, transmission,
modification or etinguis*mentof real rig*ts over immovable
roerty" sales of real roertyor of an interest t*erein a
governed by Articles 1+%, o.
#, and 1+5"(#) 2*e cession, reudiation or
renunciation of *ereditary
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rig*ts or of t*ose of t*e
conjugal artners*i of gains"
(%) 2*e o!er to administerroerty, or any ot*er o!er
!*ic* *as for its object an actaearing or !*ic* s*ould
aear in a ublic document, ors*ould rejudice a t*ird
erson"
() 2*e cession of actions orrig*ts roceeding from an act
aearing in a ublicdocument.
All ot*er contracts !*ere t*e
amount involved eceeds five*undred esos must aear in
!riting, even a rivate one. /ut salesof goods, c*attels or t*ings in action
are governed by Articles, 1+%, o. #and 1+5. (1#+a)
$A298 89=O8CA2O O= ?28;C92? (n)
Art. 1%5-. @*en, t*ere *aving beena meeting of t*e minds of t*e arties
to a contract, t*eir true intention isnot eressed in t*e instrument
urorting to embody t*eagreement, by reason of mista0e,
fraud, ineuitable conduct or
accident, one of t*e arties may as0for t*e reformation of t*e instrument
to t*e end t*at suc* true intentionmay be eressed.
f mista0e, fraud, ineuitable
conduct, or accident *as revented ameeting of t*e minds of t*e arties,
t*e roer remedy is not reformation
of t*e instrument but annulment oft*e contract.
Art. 1%6+. 2*e rinciles of t*egeneral la! on t*e reformation of
instruments are *ereby adotedinsofar as t*ey are not in conflict
!it* t*e rovisions of t*is $ode.
Art. 1%61. @*en a mutual mista0e oft*e arties causes t*e failure of t*e
instrument to disclose t*eir real
agreement, said instrument may be
reformed.
Art. 1%6#. f one arty !as mista0enand t*e ot*er acted fraudulently or
ineuitably in suc* a !ay t*at t*einstrument does not s*o! t*eir true
intention, t*e former may as0 for t*ereformation of t*e instrument.
Art. 1%6%. @*en one arty !as
mista0en and t*e ot*er 0ne! orbelieved t*at t*e instrument did not
state t*eir real agreement, butconcealed t*at fact from t*e former,
t*e instrument may be reformed.
Art. 1%6. @*en t*roug* t*eignorance, lac0 of s0ill, negligence or
bad fait* on t*e art of t*e ersondrafting t*e instrument or of t*e
cler0 or tyist, t*e instrument doesnot eress t*e true intention of t*earties, t*e courts may order t*at
t*e instrument be reformed.Art. 1%65. f t!o arties agree uon
t*e mortgage or ledge of real or
ersonal roerty, but t*einstrument states t*at t*e roerty
is sold absolutely or !it* a rig*t ofreurc*ase, reformation of t*e
instrument is roer.Art. 1%66. 2*ere s*all be no
reformation in t*e follo!ing cases:
(1) ?imle donations intervivos !*erein no condition is
imosed"(#) @ills"
(%) @*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 subseuentlyas0 for its reformation.
Art. 1%6. 8eformation may beordered at t*e instance of eit*er
arty or *is successors in interest, ift*e mista0e !as mutual" ot*er!ise,
uon etition of t*e injured arty, or
*is *eirs and assigns.Art. 1%6-. 2*e rocedure for t*e
reformation of instrument s*all be
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governed by rules of court to be
romulgated by t*e ?ureme $ourt.
$A298 5
298892A2O O= $O28A$2?
Art. 1%7+. f t*e terms of a contractare clear and leave no doubt uon
t*e intention of t*e contracting
arties, t*e literal meaning of itsstiulations s*all control.
f t*e !ords aear to be contrary tot*e evident intention of t*e arties,
t*e latter s*all revail over t*e
former. (1#1)Art. 1%71. n order to judge t*e
intention of t*e contracting arties,t*eir contemoraneous and
subseuent acts s*all be rinciallyconsidered. (1##)Art. 1%7#. o!ever general t*e
terms of a contract may be, t*eys*all not be understood to
comre*end t*ings t*at are distinct
and cases t*at are different fromt*ose uon !*ic* t*e arties
intended to agree. (1#%)Art. 1%7%. f some stiulation of any
contract s*ould admit of severalmeanings, it s*all be understood as
bearing t*at imort !*ic* is most
adeuate to render it effectual.(1#)
Art. 1%7. 2*e various stiulations ofa contract s*all be interreted
toget*er, attributing to t*e doubtful
ones t*at sense !*ic* may resultfrom all of t*em ta0en jointly.
(1#5)
Art. 1%75. @ords !*ic* may *avedifferent significations s*all be
understood in t*at !*ic* is most in0eeing !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*e interretation of t*e ambiguitiesof a contract, and s*all fill t*e
omission of stiulations !*ic* are
ordinarily establis*ed. (1#7)
Art. 1%77. 2*e interretation ofobscure !ords or stiulations in a
contract s*all not favor t*e arty!*o caused t*e obscurity. (1#)
Art. 1%7. @*en it is absolutelyimossible to settle doubts by t*e
rules establis*ed in t*e receding
articles, and t*e doubts refer toincidental circumstances of a
gratuitous contract, t*e leasttransmission of rig*ts and interests
s*all revail. f t*e contract is
onerous, t*e doubt s*all be settled infavor of t*e greatest recirocity of
interests.f t*e doubts are cast uon t*e
rincial object of t*e contract insuc* a !ay t*at it cannot be 0no!n!*at may *ave been t*e intention or
!ill of t*e arties, t*e contract s*allbe null and void. (1#-)
Art. 1%7-. 2*e rinciles of
interretation stated in 8ule 1#% oft*e 8ules of $ourt s*all li0e!ise be
observed in t*e construction ofcontracts. (n)
$A298 6
89?$??/9 $O28A$2?
Art. 1%+. $ontracts validly agreed
uon may be rescinded in t*e casesestablis*ed by 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*ey reresentsuffer lesion by more t*an one'
fourt* of t*e value of t*e t*ings!*ic* are t*e object t*ereof"
(#) 2*ose agreed uon inreresentation of absentees, if
t*e latter suffer t*e lesion
stated in t*e recedingnumber"
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(%) 2*ose underta0en in fraud
of creditors !*en t*e latter
cannot in any ot*er mannercollect t*e claims due t*em"
() 2*ose !*ic* refer to t*ingsunder 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 cometentjudicial aut*ority"
(5) All ot*er contracts seciallydeclared by la! to be subject to
rescission. (1#-1a)
Art. 1%#. ayments made in a stateof insolvency for obligations to
!*ose fulfillment t*e debtor couldnot be comelled at t*e time t*ey
!ere effected, are also rescissible.(1#-#)Art. 1%%. 2*e action for rescission
is subsidiary" it cannot be institutedecet !*en t*e arty suffering
damage *as no ot*er legal means to
obtain rearation for t*e same.(1#-)
Art. 1%. 8escission s*all be only tot*e etent necessary to cover t*e
damages caused. (n)Art. 1%5. 8escission creates t*e
obligation to return t*e t*ings !*ic*
!ere t*e object 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 can return
!*atever *e may be obliged torestore.
eit*er s*all rescission ta0e lace
!*en t*e t*ings !*ic* are t*e objectof t*e contract are legally in t*e
ossession of t*ird ersons !*o didnot act in bad fait*.
n t*is case, indemnity for damagesmay be demanded from t*e erson
causing t*e loss. (1#-5)
Art. 1%6. 8escission referred to inos. 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
by gratuitous title are resumed to*ave been entered into in fraud of
creditors, !*en t*e donor did notreserve sufficient roerty to ay all
debts contracted before t*e
donation.Alienations by onerous title are also
resumed fraudulent !*en made byersons against !*om some
judgment *as been issued. 2*e
decision or attac*ment need notrefer to t*e roerty alienated, and
need not *ave been obtained by t*earty see0ing t*e rescission.
n addition to t*ese resumtions,t*e design to defraud creditors maybe roved in any ot*er manner
recogniBed by t*e la! of evidence(1#-7a)
Art. 1%. @*oever acuires in bad
fait* t*e t*ings alienated in fraud ofcreditors, s*all indemnify t*e latter
for damages suffered by t*em onaccount of t*e alienation, !*enever,
due to any cause, it s*ould beimossible for *im to return t*em.
f t*ere are t!o or more alienations,
t*e first acuirer s*all be liable first,and so on successively. (1#-a)
Art. 1%-. 2*e action to claimrescission must be commenced
!it*in four years.
=or ersons under guardians*i andfor absentees, t*e eriod of four
years s*all not begin until t*e
termination of t*e formerDsincaacity, or until t*e domicile of
t*e latter is 0no!n. (1#--)
$A298 74O
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t*ing s*all not be an obstacle to t*e
success of t*e action, unless said
loss too0 lace t*roug* t*e fraud orfault of t*e laintiff. (1%1a)
Art. 1+#. As long as one of t*econtracting arties does not restore
!*at in virtue of t*e decree ofannulment *e is bound to return, t*e
ot*er cannot be comelled to comly
!it* !*at is incumbent uon *im.(1%+)
$A298
;9=O8$9A/9 $O28A$2? (n)
Art. 1+%. 2*e follo!ing contracts
are unenforceable, unless t*ey areratified:
(1) 2*ose entered into in t*ename of anot*er erson by one!*o *as been given no
aut*ority or legalreresentation, or !*o *as
acted beyond *is o!ers"
(#) 2*ose t*at do not comly!it* t*e ?tatute of =rauds as
set fort* in t*is number. n t*efollo!ing cases an agreement
*ereafter made s*all beunenforceable by action, unless
t*e same, or some note or
memorandum, t*ereof, be in!riting, and subscribed by t*e
arty c*arged, or by *is agent"evidence, t*erefore, of t*e
agreement cannot be received
!it*out t*e !riting, or asecondary evidence of its
contents:
(a) An agreement t*at byits terms is not to be
erformed !it*in a yearfrom t*e ma0ing t*ereof"
(b) A secial romise toans!er for t*e debt,
default, or miscarriage of
anot*er"(c) An agreement made in
consideration of marriage,
ot*er t*an a mutual
romise to marry"
(d) An agreement for t*esale of goods, c*attels or
t*ings in action, at a ricenot less t*an five *undred
esos, unless t*e buyeraccet and receive art of
suc* goods and c*attels,
or t*e evidences, or someof t*em, of suc* t*ings in
action or ay at t*e timesome art of t*e urc*ase
money" but !*en a sale is
made by auction andentry is made by t*e
auctioneer in *is salesboo0, at t*e time of t*e
sale, of t*e amount and0ind of roerty sold,terms of sale, rice,
names of t*e urc*asersand erson on !*ose
account t*e sale is made,
it is a sufficientmemorandum"
(e) An agreement of t*eleasing for a longer eriod
t*an one year, or for t*esale of real roerty or of
an interest t*erein"
(f) A reresentation as tot*e credit of a t*ird
erson.(%) 2*ose !*ere bot* arties
are incaable of giving consent
to a contract.Art. 1+. ;naut*oriBed contracts
are governed by Article 1%17 and t*e
rinciles of agency in 2itle 3 of t*is/oo0.
Art. 1+5. $ontracts infringing t*e?tatute of =rauds, referred to in o.
# of Article 1+%, are ratified by t*efailure to object to t*e resentation
of oral evidence to rove t*e same,
or by t*e accetance of benefitunder t*em.
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Art. 1+6. @*en a contract is
enforceable under t*e ?tatute of
=rauds, and a ublic document isnecessary for its registration in t*e
8egistry of
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debtor, !it* interest t*ereon from
t*e date of t*e ayment.
Art. 11. @*en money is aid orroerty delivered for an illegal
urose, t*e contract may bereudiated 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*eublic 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 artiesto an illegal contract is incaable of
giving consent, t*e courts may, if t*einterest of justice so demands allo!
recovery of money or roertydelivered by t*e incaacitatederson.
Art. 116. @*en t*e agreement isnot illegal er se but is merely
ro*ibited, and t*e ro*ibition by
t*e la! is designated for t*erotection of t*e laintiff, *e may, if
ublic 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, or by 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! fies, or
aut*oriBes t*e fiing of t*emaimum number of *ours of labor,
and a contract is entered into
!*ereby a laborer underta0es to!or0 longer t*an t*e maimum t*us
fied, *e may demand additionalcomensation for service rendered
beyond t*e time limit.Art. 11-. @*en t*e la! sets, or
aut*oriBes t*e setting of a minimum
!age for laborers, and a contract isagreed uon by !*ic* a laborer
accets a lo!er !age, *e s*all be
entitled to recover t*e deficiency.
Art. 1#+. n case of a divisiblecontract, if t*e illegal terms can be
searated from t*e legal ones, t*elatter may be enforced.
Art. 1#1. 2*e defense of illegality ofcontract is not available to t*ird
ersons !*ose interests are not
directly affected.Art. 1##. A contract !*ic* is t*e
direct result of a revious illegalcontract, is also void and ineistent.
2itle . ' A2;8A O/>A2O?
Art. 1#%. Obligations are civil ornatural. $ivil obligations give a rig*t
of action to comel t*eirerformance. atural obligations,not being based on ositive la! but
on euity and natural la!, do notgrant a rig*t of action to enforce
t*eir erformance, but after
voluntary fulfillment by t*e obligor,t*ey aut*oriBe t*e retention of !*at
*as been delivered or rendered byreason t*ereof. ?ome natural
obligations are set fort* in t*efollo!ing articles.
Art. 1#. @*en a rig*t to sue uon
a civil obligation *as lased byetinctive rescrition, t*e obligor
!*o voluntarily erforms t*econtract cannot recover !*at *e *as
delivered or t*e value of t*e service
*e *as rendered.Art. 1#5. @*en !it*out t*e
0no!ledge or against t*e !ill of t*e
debtor, a t*ird erson ays a debt!*ic* t*e obligor is not legally
bound to ay because t*e actiont*ereon *as rescribed, but t*e
debtor later voluntarily reimbursest*e t*ird erson, t*e obligor cannot
recover !*at *e *as aid.
Art. 1#6. @*en a minor bet!eeneig*teen and t!enty'one years of
age !*o *as entered into a contract
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!it*out t*e consent of t*e arent or
guardian, after t*e annulment of t*e
contract voluntarily returns t*e!*ole t*ing or rice received,
not!it*standing t*e fact t*e *e *asnot been benefited t*ereby, t*ere is
no rig*t to demand t*e t*ing or ricet*us returned.
Art. 1#7. @*en a minor bet!een
eig*teen and t!enty'one years ofage, !*o *as entered into a contract
!it*out t*e consent of t*e arent orguardian, voluntarily ays a sum of
money or delivers a fungible t*ing in
fulfillment of t*e obligation, t*eres*all be no rig*t to recover t*e same
from t*e obligee !*o *as sent orconsumed it in good fait*. (116+A)
Art. 1#. @*en, after an action toenforce a civil obligation *as failedt*e defendant voluntarily erforms
t*e obligation, *e cannot demand
t*e return of !*at *e *as delivered
or t*e ayment of t*e value of t*e
service *e *as rendered.Art. 1#-. @*en a testate or
intestate *eir voluntarily ays a debtof t*e decedent eceeding t*e value
of t*e roerty !*ic* *e received by!ill or by t*e la! of 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 declaredvoid because it *as not been
eecuted in accordance !it* t*e
formalities reuired by la!, but oneof t*e intestate *eirs, after t*e
settlement of t*e debts of t*edeceased, ays a legacy in
comliance !it* a clause in t*edefective !ill, t*e ayment iseffective and irrevocable.