OBLIGATIONS AND CONTRACTS

ARTICLES 1156-1230, inclusive. A. Culpa Contractual

A. GENERAL PROVISIONS 1. Employer/Owner liable

a. Elements  FGU v. Sarmiento, 386 SCRA 312 [2002]
Ang Yu Asuncion vs. Court of Appeals, 238 SCRA 602 2. Presumption of Fault/Negligence-arises from mere breach.
 FGU v. Sarmiento, 386 SCRA 312 [2002]
b. Arts. 19 & 21
B. Culpa Aquiliana
 Paguio v. PLDT, 393 SCRA 379 [2002]
 Carpio v. Valmonte, 438 SCRA 38 [2004] 1. Villanueva v. Domingo, 438 SCRA 485 [2004]
 Regino v. Pangasinan Colleges, 443 SCRA 56 [2004]
 Nikko Hotel v. Reyes aka C. Employee & employer solidarily liable

c. Sources of Obligations 1. If employer sued, employee not indispensable party

 Sagrada Orden De Predicadores Del Santismo Rosario De Filipinas vs. National
Coconut Corporation, G.R. No. L-3756, June 30, 1952
 Intestate Estate of the Late Ricardo Presbiterio vs. Court of Appeals, 217 SCRA
372
 MMTC v. CA, 386 SCRA 126 [2002] (Culpa Contractual/Culpa Aquiliana)
 Makati Stock Exchange, Inc., Et Al. vs. Campos, G.R. No. 138814, April 16, 2009
 The Metropolitan Bank And Trust Company vs. Ana Grace Rosales And Yo Yuk To,
G.R. No. 183204, January 13, 2014
d. Article 1158.
 George W. Batchelder vs. The Central Bank Of The Philippines, G.R. No. L-25071,
July 29, 1972
 Arturo Pelayo Vs. Marcelo Lauron, Et Al., G.R. No. L-4089, January 12, 1909
e. Article 1159
 Morla vs. Corazon Belmonte, et al., G.R. No. 171146, December 7, 2011
 Fausto Barredo vs. Severino Garcia And Timotea Almario, G.R. No. L-48006, July
8, 1942
 Cerezo v. Tuazon, 426 SCRA 167 [2004]
 LRTA v. Navidad, 397 SCRA 75 [2003]
 Viron v. De los Santos, 345 SCRA 509 [2000]
2. Employer’s fault/negligence presumed.
 Victory Liner v. Heirs of Malecdan, 394 SCRA 520 [2002]
 Pleyto v. Lomboy, 432 SCRA 329 [2004]
 Estacion v. Bernardo, 483 SCRA 222 [2006}
3. Presumption is rebuttable by proof of due diligence
 Viron v. Delos Santos, 345 SCRA 509 [2000]
 Sykl v. Begasa, 414 SCRA 237 [2003]
 Delsan v. C&A Construction, 412 SCRA 524 [2003]
4. Quasi-delictual liability may arise even where there is an existing contractual
relationship.
 Regino v. Pangasinan Colleges, 443 SCRA 56 [2004]
 YHT Realty v. CA, 451 SCRA 638 [2005]
 American Express International, Inc. vs. Cordero, 473 SCRA 42
 Shell Petroleum Corporation vs. John Bordman Ltd. of Ilolilo, Inc., 473 SCRA 151

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B. NATURE AND EFFECTS OF OBLIGATIONS  Lorenzo Shipping Corp. vs. BJ Mathell Int’l., Inc., 443 SCRA 163
 Titan Construction Corp. vs. Uni-Field Enterprises, Inc., 517 SCRA 180
1. Article 1164  Social Security System vs. Moonwalk Development and Housing Corporation,
 Equatorial Realty Development, Inc. vs. Mayfair Theater, Inc., G.R. No. 133879, 221 SCRA 119
November 21, 2001  Bricktown Development Corporation vs. Amor Tierra Development Corporation,
 The Fidelity And Deposit Company Of Maryland vs. William A. Wilson, Et Al., G.R. 239 SCRA 126
No. 2684, March 15, 1907  Titan-Ikeda Construction and Development Corporation vs. Primetown Property,
Inc., 544 SCRA 466
2. Article 1165.
 Jimmy Co vs. Court Of Appeals And Broadway Motor Sales Corporation, G.R. No. 8. Article 1171 (Fraud/Bad Faith)
124922, June 22, 1998  Cathay Pacific Airways vs. Vasquez, 399 SCRA 207 [2003]
 Coca-Cola Bottlers Philippines, Inc. vs. CA and Lydia Geronimo, G.R. No. 110295,
3. Article 1166. October 18, 1993
a. Testacy Of Maxima Santos Vda. De Blas. Rosalina Santos vs. Flora Blas De Buenaventura
(Legatee), G.R. No. L-22797, September 22, 1966 9. Article 1173 (Negligence)
 Yambao vs. Zuniga, 418 SCRA 266
4. Article 1167  Eastern Shipping Lines, Inc. vs. Court of Appeals, 234 SCRA 78
 Continental Cement Corp. vs. Filipinas (Prefab) Systems, Inc., G.R. No. 176917,
August 4, 2009 10. Article 1174 (Fortuitous Event)
 Heirs Of Ramon C. Gaite, Et Al.
 vs. The Plaza, Inc. And Fgu Insurance Corporation, G.R. No. 177685, January 26, National Power Corporation vs. Court of Appeals, 222 SCRA 125
2011  Philippine Communications Satellite Corporation vs. Globe Telecom, Inc., G.R.
 Continental Cement Corporation vs. Asea Brown Boveri, Inc., Bbc Brown Boveri, No. 147324, May 25, 2004
Corp., And Tord B. Erikson, G.R. No. 171660, October 17, 2011  FGU Insurance Corporation vs. Court of Appeals, 454 SCRA 337
5. Article 1168  Schmitz Transport & Brockerage Corporation vs. Transport Venture, Inc., 456
 Eliseo Fajardo, Jr., And Marissa Fajardo Vs. Freedom To Build, Inc., G.R. No. SCRA 557
134692, August 1, 2000  National Development Corporation vs. Court of Appeals, 211 SCRA 422
 Philippine Free Press, Inc. vs. Court of Appeals, 473 SCRA 639
6. Article 1170  Osmena vs. Social Security System, 533 SCRA 313
 Guanio vs Makati Shangri-La Hotel and Resort Corp., g.r. No. 190601, February 7,  Jimmy Co vs. Court Of Appeals And Broadway Motor Sales Corporation, G.R. No.
2011 124922, June 22, 1998
 Continental Cement Corp. vs. Asea Brown Boveri, .R. No. 171660, October 17,
2011 11. Article 1175
 See Banko Sentral Circular No. 799, Series of 2013 dated July 1, 2013.
7. Article 1169 (Delay)  Eastern Shipping v. CA, 234 SCRA 78 [1994]
 Rodolfo G. Cruz and Esperanza Ibias vs. Atty. Delfin Gruspe, G.R. No. 191431,  JL Investment and Development, Inc. vs. Tendon Phils., Inc., 512 SCRA 84 [2007]
March 13, 2013  New Sampaguita Builders Construction, Inc. vs. PNB, 435 SCRA 565 [2004]
 Solar Harvest, Inc. vs. Davao Corrugated Carton Corporation, G.R. No. 176868,  Pilipinas Bank vs. Court of Appeals, 225 SCRA 268
July 26, 2010  Sunga-Chan vs. Court of Appeals, 275 SCRA 555
 Santos vs. Ventura Foundation, Inc., 441 SCRA 472

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12. Article 1176
 Rizal Commercial Banking Corporation vs. Pedro P. Buenaventura, G.R. No.
176479, October 6, 2010
 13. Article 1177
 Gold Star Mining Co., Inc. vs. Marta Lim-Jimena, ET AL., G.R. No. L-25301,
October 26, 1968
 Anchor Savings Bank (Formerly Anchor Finance And Investment Corporation) vs.
Henry H. Furigay, ET AL., G.R. No. 191178, March 13, 2013
 Elenita M. Dewara vs. Sps. Ronnie And Gina Lamela And Stenile Alvero, G.R. No.
179010, April 11, 2011
 Metropolitan Bank and Trust Company vs. International Exchange Bank, G.R. No.
176008, August 1, 2011
C. KINDS OF OBLIGATIONS
1. Conditional Obligations (Articles 1179-1192)
 ATIENZA VS. ESPIDOL, G.R. No. 180665, August 11, 2010
 VDA. DE MISTICA VS. NAGUIAT, 418 SCRA 73
 TAYAG VS. COURT OF APPEALS, 219 SCRA 480
 GAITE VS. FONACIER, G.R. No. L-11827, July 31, 1961
 MACTAN-CEBU INTERNATIONAL AIRPORT AUTHORITY and AIR TRANSPORTATION
OFFICE vs. BERNARDO L. LOZADA, SR., ET AL. G.R. No. 176625, 2010
 MACTAN-CEBU INTERNATIONAL AIRPORT AUTHORITY vs. BENJAMIN TUDTUD, ET
AL., G.R. No. 174012, November 14, 2008
 REPUBLIC OF THE PHILIPPINES vs. HOLY TRINITY REALTY DEVELOPMENT CORP.,
G.R. No. 172410, April 14, 2008
 h. ROMULO A. CORONEL, ET AL. vs. THE COURT OF APPEALS, ET AL., G.R. No.
103577, October 7, 1996
 LUZON BROKERAGE CO., INC. vs. MARITIME BUILDING CO., INC. and MYERS
BUILDING CO., INC., G.R. No. L-25885 August 18, 1972
 j. PILIPINO TELEPHONE CORP. vs. RADIOMARINE NETWORK, G.R. No. 160322,
August 24, 2011
 k. INTERNATIONAL HOTEL CORPORATION vs. FRANCISCO B. JOAQUIN, JR. and
RAFAEL SUAREZ, G.R. No. 158361, April 10, 2013
On Article 1191 (Resolution/Rescission of Obligations)
The Four Questions:
(1) Must the right to rescind be stipulated?
(2) Is it the last recourse?
(3) Must it be done through court action?
(4) Is there a duty of mutual restitution?
 Gaite vs. The Plaza, Inc., G.R. No. 177685,Januaryu 26, 2011
 Solar Harvest, Inc. vs. Davao Corrugated Carton Corporation, G.R. No. 176868,
July 26, 2010
 UFC v. CA, 33 SCRA 1 [1970]
 Cannu v. Galang, 459 SCRA 80 [2005]
 UP v. De Los Angeles, 35 SCRA 102 [1970]
 Gil vs. Garcia, 410 SCRA 562 [2003]
 Visayan Sawmill Company, Inc. vs. CA, 219 SCRA 378
 Tayag vs. Court of Appeals, 219 SCRA 480
 Binalbagan Tech. Inc. vs. CA, 219 SCRA 541
 Deiparine vs. Court of Appeals, 221 SCRA 119
 Prudence Realty and Development Corp. vs. Court of Appeals, 231 SCRA 379
 Genaro Reyes Construction, Inc. vs. Court of Appeals, 234 SCRA 116
 Areola vs. Court of Appeals, 236 SCRA 643
 Diesel Construction Co., Inc. vs. UPSI Property Holdings, Inc., 549 SCRA 12
 Spouses Jose T. Valenzuela And Gloria Valenzuela Vs. Alayaan Development &
Industrial Corporation, G.R. No. 163244, June 22, 2009
2. Obligations with a Period (Articles 1193-1198)
 GAITE vs. FONACIER, G .R. No. L-11827, July 31, 1961
 SARMIENTO vs. JAVELLANA, G.R. No. L-18500, October 2, 1922
 SEOANE vs. FRANCO, G.R. No. L-7859, February 12, 1913
 ORIT vs. BALDROGAN COMPANY, LTD, G.R. No. L-12277, December 29, 1959
 BUCE vs. CA G.R. No. 136913, May 12, 2000
 LL AND COMPANY DEVELOPMENT AND AGRO-INDUSTRIAL CORPORATION vs.
HUANG CHAO CHUN, G.R. No. 142378, March 7, 2002
 MACASAET vs.MACASAET, G.R. Nos. 154391-92, September 30, 2004
 ABAD vs. GOLDLOOP PROPERTIES, INC., G.R. No. 168108, April 13, 2007
 PEOPLE'S BANK AND TRUST CO. and ATLANTIC GULF AND PACIFIC CO. OF
MANILA vs. DAHICAN LUMBER COMPANY, , G.R. No. L-17500, May 16, 1967
 CORPUS vs. ALIKPALA, G.R. No. L-23707, January 17, 1968
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  LIRAG TEXTILE MILLS, INC. and FELIX K. LIRAG vs. COURT OF APPEALS and
CRISTAN ALCANTARA, G.R. No. L-30736 April 14, 1975
 CENTRAL PHILIPPINE UNIVERSITY vs. CA, 246 SCRA 511
 DR. DANIEL VAZQUEZ and MA. LUIZA M. VAZQUEZ vs. AYALA CORPORATION, G.R.
No. 149734, November 19, 2004
 PAUL SCHENKER vs. WILLIAM F. GEMPERLE, G.R. No. L-16449, August 31, 1962
 ENRIQUE C. ABAD ET AL. vs. GOLDLOOP PROPERTIES, INC.R. No. 168108, April 13,
2007
 THE SECRETARY OF EDUCATION and DR. BENITO TUMAMAO vs. HEIRS OF
RUFINO DULAY, SR. ET AL., G.R. No. 164748, January 27, 2006
 JOSE A. V. CORPUS vs. HON. FEDERICO C. ALIKPALA, as Presiding Judge of Branch
XXII, Court of First Instance of Manila and ACME MANUFACTURING, CO., INC.,
respondents., G.R. No. L-23707, January 17, 1968
3. Alternative and Facultative Obligations (Articles 1199-1206)
 AGONCILLO vs. JAVIER, 38 PHIL. 424
 ONG GUAN CAN vs. CENTURY INSURANCE CO., 46 Phil. 592
 CLARA TAMBUNTING DE LEGARDA, ET AL vs. VICTORIA DESBARATS MIAILHE, G.R.
No. L-3435, April 28, 1951
 MARTINA QUIZANA vs. GAUDENCIO REDUGERIO and JOSEFA POSTRADO, G..R.
No. L-6220, May 7, 1954
 ARCO PULP AND PAPER CO., INC. and CANDIDA A. SANTOS
 vs. DAN T. LIM, G.R. No. 206806, June 25, 2014
4. Joint and Solidary Obligations
(Articles 1207-1222; see also Articles 109 and 110 of the Revised Penal Code)
 REPUBLIC GLASS CORPORATION vs. QUA, 435 SCRA 480 [2004]
 LAFARGE CEMENT PHILS., INC. vs. CONTINENTAL CEMENT CORP., 443 SCRA 552
 CERNA vs. COURT OF APPEALS, 220 SCRA 517
 SESBRENO vs. COURT OF APPEALS, 222 SCRA 466
 MMTC vs. CA, 223 SCRA 521
 ESTRELLA PALMARES vs. COURT OF APPEALS and M.B. LENDING CORPORATION,
G.R. No. 126490 March 31, 1998
 TIU vs. COURT OF APPEALS, 228 SCRA 51
 SOLIDBANK CORPORATION vs. MINDANAO FERROALLOY CORPORATION, 464
SCRA 409
 INTERNATIONAL FINANCE CORPORATION vs. IMPERIAL TEXTILE MILLS, INC. 475
SCRA 149
 PEOPLE OF THE PHILIPPINES vs. TAMPUS, G.R. No. 181084, June 16, 2009
 BENIGNO M. VIGILLA ET AL. vs. PHILIPPINE COLLEGE OF CRIMINOLOGY INC.
and/or GREGORY ALAN F. BAUTISTA, G.R. No. 200094, June 10, 2013
 PH CREDIT CORPORATION vs. COURT OF APPEALS and CARLOS M. FARRALES, No.
109648, November 22, 2001
 LILIBETH SUNGA-CHAN and CECILIA SUNGA vs.
 THE HONORABLE COURT OF APPEALS ET Al., G.R. No. 164401, June 25, 2008
5. Divisible and Indivisible Obligations (Articles 1223-1225)
 Nazareno vs, CA, 343 SCRA 637
 SPOUSES GONZALES vs. GSIS, G.R. No. L-51997 September 10, 1981
 Blossom & Company, Inc. v. Manila Gas Corporation (55 Phil. 226 (1930)
 J. M. TUASON & CO., INC. vs. COLLECTOR OF INTERNAL REVENUE. G.R. No. L-
11530, June 30, 1960
 INTESTATE ESTATE OF FRANCISCO UBAT, deceased. JOSE L. SORIANO vs.
ATANASIA UBAT DE MONTES, ET AL. G.R. No. L-11633, January 31, 1961
 METROPOLITAN BANK and TRUST COMPANY, INC. vs. SLGT HOLDINGS, INC.,
DANILO A. DYLANCO and ASB DEVELOPMENT CORPORATION, G.R. Nos. 175181-
82, September 14, 2007
 INTERNATIONAL HOTEL CORPORATION vs. FRANCISCO B. JOAQUIN, JR. and
RAFAEL SUAREZ, G.R. No. 158361, April 10, 2013
 6. Obligations with a Penal Clause (Articles 1226-1230)
 FILINVEST LAND, INC. vs. COURT OF APPEALS, 470 SCRA 260
 FLORENTINO vs. SUPERVALUE, INC., 533 SCRA 156
 MAKATI DEVELOPMENT CORPORATION vs. EMPIRE INSURANCE CO., G.R. No. L-
21780, June 30, 1967
 COUNTRY BANKERS INSURANCE CORPORATION and ENRIQUE SY vs. COURT OF
APPEALS and OSCAR VENTANILLA ENTERPRISES CORPORATION, G.R. No. 85161,
September 9, 1991