Course Outline in Obligation & Contracts

(Prof. Elmer T. Rabuya)

PART 1: OBLIGATIONS

Chapter 1: Concept and Elements

Art. 1156, NCC

Justice J.B.L. Reyes, Observations on the New Civil Code, XVI L.J., 47

Makati Stock Exchange, Inc. v. Campos, 585 SCRA 120 (2009)

Memorandum of the Code Commission, March 8, 1951

Ang Yu Asuncion v. CA, 238 SCRA 602 (1994)

Chapter 2: Sources of Obligations

Art. 1157, NCC

Makati Stock Exchange, Inc. v. Campos, 585 SCRA 120 (2009)

A. Law

Art. 1158, NCC

B. Contract

Art. 1159, NCC

C. Quasi-contract

Art. 1160, NCC; Arts. 2142-2175, NCC

Traders Royal Bank Employees Union-Independent v. NLRC, 269 SCRA 733 (1997)

PNB v. CA and B.P. Mata and Co., Inc., 217 SCRA 347 (1993)

(aa) Negotiorum Gestio

Sison v. Balgos, 34 Phil. 885 (1916)

(bb) Solutio Indebiti

Concept: Genova v. De Castro, G.R. No.132076, July 22, 2003, citing Andres v.
Manufacturers Hanover & Trust Corporation, G.R. No. 82670, Sep. 15, 1989, 177 SCRA
618; and Ramie Textiles, Inc. v. Mathay, Sr., G.R. No. L-32364, April 30, 1979

Requisites: Siga-an v. Villanueva, 576 SCRA 696 (2009); BPI v. Sarmiento, 484 SCRA
261 (2006); Moreno-Lentfer v. Wolff, 441 SCRA 584, (2004); Genova v. De Castro,
supra; National Commercial Bank of Saudi Arabia v. CA, G.R. No. 124267, Jan. 31,
2003; Power Commercial and Industrial Corp. v. CA, 274 SCRA 597 (1997); PNB v. CA,
217 SCRA 347 (1993)

Includes Mistake of Law: CIR v. Fortune Tobacco Corp., G.R. Nos. 167274-75, July 21,
2008

Distinguished From In Rem Verso: Frenzel v. Catito, G.R. No. 143958, July 11, 2003;
Land Bank of the Philippines v. Ong, G.R. No. 190755, Nov. 24, 2010, 636 SCRA 266
(2010); UP v. Philab Industries, Inc., 482 Phil. 693 (2004); Shinryo (Philippines)
Company, Inc. v. RRN Incorporated, G.R. No. 172525, Oct. 20, 2010.

D. Delict

Art. 1161, NCC; Arts. 100-103, RPC

Basis of Civil Liability in Crime: Occena v. Icamina, 181 SCRA 328 (1990); Banal v.
Tadeo, Jr., 156 SCRA 325 (1987).

Effect of Acquittal of Accused: Art. 29, NCC; Manantan v. CA, 350 SCRA 387 (2001);
Manliclic v. Calaunan, 512 SCRA 642 (2007); Nuguid v. Nicdao, 502 SCRA 93 (2006);
Padilla v. CA, 129 SCRA 558 (1984).

Rule of Implied Institution: Sec. 1, Rule 111, 2000 Revised Rules of Criminal Procedure;
Casupanan v. Laroya, G.R. No. 145391, Aug. 26, 2002

Effect of Death During Appeal: People v. Bayotas, 236 SCRA 239 (1994); reiterated in
other cases such as Villegas v. CA, G.R. No. 82562, April 11, 1997; People v. Abungan,
G.R. No. 136843, Sep. 28, 2000; Go v. Looyuko, 537 SCRA 445 (2007); People v. Bunay,
630 SCRA 445 (2010); People v. Ayochok, 629 SCRA 324 (2010).

E. Quasi-delict

Art. 1162, NCC; Arts. 2176-2177 and 2180, NCC

Requisites: Dy Teban Trading, Inc. v. Ching, 543 SCRA 560; BPI v. Lifetime Marketing
Corp., 555 SCRA 373; Corinthian Gardens Association, Inc. v. Tanjangco, 556 SCRA
154; Ngo Sin Sing v. Li Seng Giap & Sons, Inc., 572 SCRA 625

Scope of Quasi-Delict: Barredo v. Garcia and Almario, 73 Phil. 60 (1942); Diana v.

Batangas Transportation Co., 93 Phil. 392; Elcano v. Hill, 77 SCRA 89 (1977); Dulay v.
CA, 313 Phil. 8, 20 (1995); Safeguard Security Agency, Inc. v. Tangco, 511 SCRA 67
(2006).

Prohibition Against Double Recover: Art. 2177, NCC

Effect of Pre-Existing Contractual Relations: Air France v. Carrascoso, 18 SCRA 155

(1966); reiterated in Singson v. BPI, 23 SCRA 1117 (1968); also in Light Rail Transit
Authority v. Navidad, 397 SCRA 75 (2003); YHT Realty Corp. v. CA, 451 SCRA 638
(2005); and Schmitz Transport & Brokerage Corp. v. Transport Venture, Inc., 456 SCRA
557 (2005).

Distinction Between Culpa Aquiliana and Culpa Contractual: Calalas v. CA, 332 SCRA 356
(2000); Cangco v. Manila Railroad Co., G.R. No. L-12191, Oct. 14, 1918; FGU Insurance
Corp. v. G.P. Sarmiento Trucking Corp., G.R. 141910, Aug. 6, 2002.