WORKHARD AND PERSEVERE FOR GREATNESS IS IN YOUR HANDS

OBLIGATIONS JURIDICAL NECESSITY THE ABSENCE OF CHOICE ON THE PART OF THE DEBTOR.

ELEMENTS OF AN OBLIGATION 1. AN ACTIVE SUBJECT THE POSSESOR OF A RIGHT; HE IN WHOSE FAVOR THE OBLIGATION IS CONSTITUTED. 2. A PASSIVE SUBJECT HE WHO HAS THE DUTY OF GIVING, DOING OR NOT DOING. 3. THE OBJECT OR PRESTATION 4. THE EFFICIENT CAUSE THE REASON WHY THE OBLIGATION EXISTS. AN OBLIGATION IS A JURIDICAL RELATION WHEREBY A CREDITOR MAY DEMAND FROM A DEBTOR THE OBSERVANCE OFA DETERMINATIVE CONDUCT (THE GIVING, DOING OR NOT DOING), AND IN CASE OF BREACH, MAY DEMAND SATISFACTION FROM THE ASSETS OF THE LATTER. OBLIGATIONS ARISE FROM 1. LAW 2. CONTRACTS 3. QUASI-CONTRACTS 4. DELICTS 5. QUASI-DELICTS

NO MEETING OF THE MINDS

THE SO CALLED INNOMINATE CONTRACTS 1. DO UT DES I GIVE THAT YOU MAY GIVE 2. DO UT FACIAS I GIVE THAT YOU MAY DO 3. FACIO UT DES I DO THAT YOU MAY GIVE 4. FACIO UT FACIAS I DO THAT YOU MAY DO NEGOTIORUM GESTIO TAKES PLACE WHEN A PERSON VOLUNTARILY TAKES CHARGE OF ANOTHERS ABANDONED BUSINESS OR PROPERTY WITHOUT THE OWNERS AUTHORITY. REIMBURSEMENT MUST BE MADE TO THE GESTOR FOR NECESSARY AND USEFUL EXPENSES, AS A RULE. SOLUTIO INDEBITI TAKES PLACE WHEN SOMETHING IS RECEIVED WHEN THERE IS NO RIGHT TO DEMAND IT, AND IT WAS UNDULY DELIVERED THRU MISTAKE. THE RECIPIENT HAS THE DUTY TO RETURN IT. NATURE AND EFFECT OF OBLIGATIONS CHARACTERISTICS OF AN OBLIGATION TO DO, NOT TO DO OR TO GIVE. INHERENT AND INDISPENSIBLE WHEN AN OBLIGATION ARISES. NOT COLLECTIVE BUT BY COMPONENT PER COMPONENT. ARTICLE 1163 COMPLIANCE OR FULFILLMENT TO GIVE AND TO TAKE CARE

ARTICLE 1164 THREE PERIODS 1. TIME THE OBLIGATION IS INCURRED 2. TIME THE OBLIGATION ARISES 3. TIME THE OBLIGATION IS DELIVERED - THREE FRUITS 1. NATURAL FRUITS 2. INDUSTRIAL FRUITS 3. CIVIL FRUITS

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NON NUDIS PACTIS, SED TRADITIONIS DOMINIA RERYM TRANSFERANTUR AS A CONSEQUENCE OF CERTAIN CONTRACTS, IT IS NOT AGREEMENT BUT TRADITION OR DELIVERY THAT TRANSFERS OWNERSHIP. ARTICLE 1165 SPECIFIC OR DETERMINATIVE THING GENERIC OR INDETERMINATE THING CANNOT BE POINTED OUT WITH PARTICULARITY CAPABLE OF PARTICULAR DESIGNATION REFERS TO A CLASS, TO A GENUS, AND

WITHIN THE GENUS THE DEBTOR CANNOT INSIST ON INFERIOR QUALITY AND THE CREDITOR CANNOT INSIST ON SUPERIOR QUALITY, THE MIDDLE WILL BE THE SATISFYING QUALITY. TO DELIVER 1. THE THING ITSELF 2. THE FRUITS 3. THE ACCESSORIES 4. THE ACCESSIONS TWO INSTANCES WHERE A FORTUITOUS EVENT DOES NOT EXEMPT 1. IF THE OBLIGOR DEFAULTS 2. IF THE OBLIGOR IS GUILTY OF BAD FAIT (FOR HAVING PROMISED TO DELIVER THE SAME THING TO TWO OR MORE PERSONS WHO DO NOT HAVE THE SAME INTEREST) ORDINARY DELAY LEGAL DELAY NON-PERFORMANCE AT THE STIPULATED TIME AMOUNTS TO A VIRTUAL NON-FULFILLMENT OF THE OBLIGATION

NECESSITY IN GENERAL OF DEMAND TO PUT A DEBTOR IN DEFAULT, AS A RULE, DEMAND IS NEEDED. DEMAND MAY BE JUDICIAL OR EXTRAJUDICIAL. DIFFERENT KINDS OF MORA 1. MORA SOLVENDI 2. MORA ACCIPIENDI 3. COMPENSATIO MORAE DEBTOR IN DEFAULT CREDITOR IN DEFAULT BOTH PARTIES IN DEFAULT

GROUNDS FOR LIABILITY IN THE PERFORMANCE OF OBLIGATIONS 1. FRAUD DOLO INTENTIONAL EVASION OF FULFILLMENT 2. NEGLIGENCE CULPA 3. DEFAULT MORA 4. VIOLATION OF THE TERMS OF THE OBLIGATION VIOLATIO UNLESS EXCUSED IN PROPER CASES BY FORTUITOUS EVENTS DEGREES OF DILIGENCE AGREED BY THE PARTIES DETERMINING STANDARDS EXTRAORDINARY DILIGENCE ORDINARY DILIGENCE LESS ORDINARY DILIGENCE EXTRAORDINARY DILIGENCE ORDINARY DILIGENCE LESS ORDINARY DILIGENCE

STIPULATED BY LAW

DILIGENCE OF A GOOD FATHER

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GENERAL RULE FOR FORTUITOUS EVENTS NO LIABILITY FOR A FORTUITOUS EVENT (CASO FORTUITO) (THAT WHICH COUND NOT BE FORESEEN, OR WHICH EVEN IF FORESEEN, WAS INEVITABLE). ORDINARY FORTUITOUS EVENTS CASO FORTUITO (LITERAL MEANING) ACT OF GOD EXTRAORDINARY FORTUITOUS EVENTS FORCE MAJURE UNAVOIDABLE ACCIDENT

ESSENTIAL CHARACTERISTICS OF A FORTUITOS EVENT 1. THE CAUSE MUST BE INDEPENDENT OF THE WILL OF THE DEBTOR 2. IMPOSSIBILTY OF FORESEEING OR IMPOSSIBILITY OR AVOIDING, EVEN IF FORESEEABLE 3. THE OCCURRENCE MUST BE SUCH AS TO RENDER IT IMPOSSIBLE FOR THE DEBTOR TO FULFILL HIS OBLIGATION IN A NORMAL MANNER ARTICLE 1177 PART OF THE CONCEPT OF JURIDICAL NECESSITY; CONTEMPLATES AN ADVANCE SITUATION ACCION SUBROGATORIA INHERENT IN THE PERSON. ACCION PAULIANA TO DEFRAUD HIS CREDITORS. EXERCISE ALL RIGHTS AND ACTIONS EXCEPT THOSE IMPUGN OR RESCIND CONTRACTS DONE BY THE DEBTOR ADDITIONS TO SIMPLE OBLIGATIONS

DIFFERENT KINDS OF OBLIGATIONS ARTIVLE 1179

ACQUISITION OF KNOWLEDGE OR THE FACTS ABOUT THE PAST EVENT IS A FUTURE EVENT CONDITIONS IT IS AN UNCERTAIN EVENT WHICH WIELDS AN INFLUENCE ON A LEGAL RELATIONSHIP. MAY REFER TO THE PAST. CAUSES AN OBLIGATION TO ARISE OR TO CEASE. CANNOT PREVENT THE BIRTH OF THE OBLIGATION IN DUE TIME. TERM OR PERIOD THAT WHICH MUST NECESSARILY MUST COME, WHETHER THE PARTIES KNOW WHEN IT WILL HAPPEN OR NOT. A FUTURE AND CERTAIN EVENT. A LENGTH OF TIME WHICH DETERMINES THE EFFECTIVITY OR THE EXTINGUISHMENT OF OBLIGATIONS. CONSISTS IN A SPACE OF TIME WHICH HAS AN INFLUENCE ON OBLIGATIONS AS A RESULT OF A JUDICIAL ACT, AND EITHER SUSPENDS THEIR DEMANDABLENESS, OR PRODUCES THEIR EXTINGUISHMENT. OBLIGATIONS WITH A PERIOD ARE, THEREFORE, THOSE WHOSE CONSEQUENCES ARE SUBJECTED IN ONE WAY OR ANOTHER TO THE EXPIRATION OF SAID TERM. EFFECTS OF CONDITION 1. SUSPENSIVE OBLIGATION 2. RESOLUTORY OBLIGATION CLASESES OF CONDITION 1. POTESTATIVE 2. CASUAL PERSON 3. MIXED POTESTATIVE THE HAPPENING OF THE CONDITION GIVES RISE TO THE THE HAPPENING OF THE CONDITION EXTINGUISHES THE

DEPENDS UPON THE WILL OF THE DEBTOR DEPENDS UPON CHANCE OR HAZARD OR THE WILL OF A THIRD

SUSPENSIVE -

VOID

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POTESTATIVE POTESTATIVE RESOLUTORY CREDITOR VALID VALID

1. RULE WHEN DEBTOR VOLUNTARILY PREVENTS FULFILLMENT OF THE CONDITIONCONSTRUCTIVE OR PRESUMED FULFILLMENT 2. ONE MUST NOT PROFIT BY HIS OWN FAULT 3. REQUISITES a. VOLUNTARILY MADE EITHER MALICIOUSLY OR NOT, THE INTENT TO PREVENT MUST BE PRESENT. IF DONE VOLUNTARILY FOR ANOTHER PURPOSE,THIS REQUISITE IS NOT PRESENT. b. ACTUALLY PREVENTS INTENTION WITHOUT PREVENTION, OR PREVENTION WITHOUT INTENTION IS NOT SUFFICIENT. BUT INTENTION AND PREVENTION IN THE EXERCISE OF A LAWFUL RIGHT WILL NOT RENDER THE ARTICLE APPLICABLE ARTICLE 1187 RECIPROCAL OBLIGATIONS. TIME GAP BETWEEN THE CONSTITUTION AND FULFILLMENT. RETROACTS TO THE DAY OF THE OBLIGATION WAS INSTITUTED. RESOLUTION IN RECIPROCAL OBLIGATIONS BY ITSELF, THE POWER TO RESCIND (RESOLUTION) THERE IS NO NEED FOR JUDICIAL APPROVAL, JUDICIAL APPROVAL IS NECESSARY WHEN ONE IS REQUIRED TO PERFORM HIS PART, (A PASSIVE ACT). POWER TO RESCIND (RESOLUTION) IS ONLY ONE OF THE REMEDIES FOR RECIPROCAL OBLIGATIONS.TO RESCIND (RESOLUTION) IS TO RETURN. THE CASE MUST BE IDENTICAL AND THE OBLIGATION SHOULD ARISE SIMULTANEOUSLY CHARACTERISTICS OF THE RIGHT TO RESCIND OR RESOLVE 1. IT EXISTS ONLY IN RECIPROCAL OBLIGATIONS 2. IT CAN BE DEMANDED ONLY IF THE PLAINTIFF IS READY, WILLING AND ABLE TO COMPLY WITH HIS OWN OBLIGATION, AND THE OTHER IS NOT 3. THE RIGHT TO RESCIND (RESOLVE) IS NOT ABSOLUTE 4. THE RIGHT TO RESCIND (RESOLVE) NEEDS JUDICIAL APPROVAL IN CERTAIN CASES, AND IN OTHERS, DOES NOT NEED SUCH APPROVAL 5. THE RIGHT TO RESCIND (RESOLVE) IS IMPLIED (PRESUMED) TO EXIST AND, THEREFORE, NEEN NOT BE EXPRESSLY STIPULATED UPON 6. THE RIGHT TO RESCIND (RESOLVE) MAY BE WAIVED, EXPRESSLY OR IMPLIEDLY A DAY CERTAIN IS UNDERSTOOD TO BE THAT WHICH MUST NECESSARILY COME, ALTHOUGH IT MAY NOT BE KNONW WHEN. EX DIE A PERIOD WITH A SUSPENSIVE EFFECT. HERE, THE OBLIGATION BEGINS ONLY FROM A DAY CERTAIN, IN OTHER WORDS, UPON THE ARRIVAL OF THE PERIOD. IN DIEM A PERIOD OR TERM WITH A RESOLUTORY EFFECT. UP TO A TIME CERTAIN, THE OBLIGATION REMAINS VALID, BUT UPON THE ARRIVAL OF SAID PERIOD, THE OBLIGATION TERMINATES. WHEN PRESCRIPTION BEGINS COMMENCES FROM THE TIME THE TERM IN THE OBLIGATION ARRIVES, FOR IT IS ONLY FROM THAT DATE THAT IT IS DUE AND DEMANDABLE. GENERALLY, TERM IS FOR THE BENEFIT OF THE DEBTOR OR CREDITOR. THE DEBTOR CANNOT PAY PREMATURELY AND THE CREDITOR CANNOT DEMAND PREMATURELY. IF THE COURT, PURSUANT TO THE ARTICLE, ACTUALLY FIXES THE TERM, THE COURT DOES NOT AMEND OR MODIFY THE OBLIGATION. THE COURT MERELY ENFORCES OR CARRIES OUT

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AN IMPLIED STIPULATION IN THE CONTRACT. BECOMES PART AND PARCEL OF THE OBLIGATION. THE DEBTOR SHALL LOSE EVERY RIGHT TO MAKE USE OF THE PERIOD THE TERM IS EXTINGUISHED, AND THE OBLIGATION IS DEMANDABLE AT ONCE. ALTERNATIVE OBLIGATION ONE WHERE OUT OF THE TWO OR MORE PRESTATIONS WHICH MAY BE GIVEN, ONLY ONE IS DUE. AS A GENERAL RULE, THE RIGHT OF CHOICE BELONGS TO THE DEBTOR. BY WAY OF EXCEPTION IT MAY BELONG TO THE CREDITOR WHEN SUCH RIGHTS HAS EXPRESSLY BEEN GRANTED TO HIM. LIMITATION ON THE DEBTORS CHOICE 1. IMPOSSIBLE 2. UNLAWFUL 3. OR WHICH COULD NOT HAVE BEEN THE OBJECT OF THE OBLIGATION REQUISITES FOR THE MAKING OF THE CHOICE 1. MADE PROPERLY SO THE CREDITOR OR HIS AGENT WILL ACTUALLY KNOW 2. MADE WITH FULL KNOWLEDGE THAT A SELECTION IS INDEED BEING MADE 3. MADE VOLUNATARILY AND FREELY 4. MADE IN DUE TIME, THAT IS, BEFORE OR UPON MATURITY 5. MADE TO ALL THE PROPER PERSONS 6. MADE WITHOUT CONDITIONS UNLESS AGREEN TO BY THE CREDITOR 7. MAY BE WAIVED, EXPRESSLY OR IMPLIEDLY FACULTATIVE OBLIGATION ONE WHERE ONLY ONE PRESTATION HAS BEEN AGREED UPON BUT THE OBLIGOR MAY RENDER ANOTHER IN SUBSTITUTION JOINT OBLIGATIONS SOLIDARY OBLIGATIONS TO EACH HIS OWN ONE FOR ALL, ALL FOR ONE

INSTANCES WHERE THE LAW IMPOSES SOLIDARY LIABILITY 1. OBLIGATIONS ARISING FROM TORT 2. OBLIGATIONS ARISING FROM QUASI-CONTRACTS 3. LEGAL PROVISIONS REGARDING THE OBLIGATION OF DEVISEES AND LEGATEES 4. LIABILITY OF PRINCIPALS, ACCOMPLICES AND ACCESSORIES OF A FELONY 5. BAILEES IN COMMODATUM EACH ONE IS LIABLE ONLY FOR HIS PROPORTION OR ALIQUOT SHARE OF THE OBLIGATION. IF THREE PERSONS SIGN A CONTRACT UNDER THE PROVISIONS OF THE CIVIL CODE, AND NO WORDS ARE USED TO MAKE EACH LIABLE FOR THE FULL AMOUNT, EACH IS ONLY LIABLE FOR THE PROPORTIONATE AMOUNT OF THE CONTRACT. FROM A READING OF THE CONTRACT IN QUESTION, IT WILL BE SEEN THAT IT IS UNA OBLIGACION MANCOMUNADA Y NO SOLIDARIA AND THAT THE THREE DEBTORS ARE NOT LIABLE SEPARATELY FOR THE PAYMENT OF THE WHOLE AMOUNT. THEY ARE EACH LIABLE FOR AN ALIQUOT PART OF THE ORIGINAL OBLIGATION. JUNTOS O SEPARADAMENTE AN EXPRESS STATEMENT, MAKING EACH OF THE PERSONS WHO SIGNED IT INDIVIDUALLY LIABLE FOR THE PAYMENT OF THE FULL AMOUNT OF THE OBLIGATION CONTAINED THEREIN. THE PHRASE JUNTOS O SEPARADAMENTE USED IN A CONTRACT CREATES THE SAME OBLIGATION AS THE PHRASE MANCOMUN O INSOLIDUM. THE WORDS SEPARADAMENTE AND INSOLIDUM USED IN A CONTRACT IN CONNECTION WITH THE NATURE OF THE LIABLITIES OF THE PARTIES ARE SUFFICIENT TO CREATE AND INDIVIDUAL LIABILITY.

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ACCORDING TO SANCHEZ ROMAN, WHAT ARE THE DIFFERENT WAYS BY WHICH TWO DEBTORS MAY BE BOUND? 1. UNIFORM WHEN THE DEBTORS ARE BOUND BY THE SAME STIPULATIONS AND CLAUSES 2. OTHERWISE WHERE THE OBLIGORS THOUGH LIABLE FOR THE SAME PRESTATION, ARE NEVERTHELESS NOT SUBJECT TO THE SAME SECONDARY STIPULATION AND CLAUSES GENERALLY, THE SOLIDARY CREDITOR CANNOT ASSIGN HIS RIGHTS, EXCEPT IF HE IS ALLOWED IF ALL THE OTHERS CONSENT NOVATION THE MODIFICATION OF AN OBLIGATION BY CHANGING ITS OBJECT OR PRINCIPAL CONDITIONS, OR BY SUBSTITUTING THE PERSON OF THE DEBTOR, OR BY SUBROGATING THE PERSON OF THE DEBTOR, OR BY SUBROGATING A THIRD PERSON IN THE RIGHTS OF CREDITOR. BY NOVATION IS UNDERSTOOD THE SUBSTITUTION OR CHANGE OF AN OBLIGATION BY ANOTHER, WHICH EXTINGUISHES OR MODIFIES THE FIRST, EITHER CHANGING ITS OBJECT OR PRINCIPAL CONDITION, OR SUBSTITUTING ANOTHER IN PLACE OF THE DEBTOR, OR SUBROGATING A THIRD PERSON THE RIGHT OF THE CREDITOR. KINDS OF NOVATION 1. OBJECT OR PURPOSE a. REAL OR OBJECTIVE b. PERSONAL OR SUBJECTIVE 2. FORM OF ITS CONSTITUTION a. EXPRESS b. IMPLIED 3. EXTENT OR EFFECT a. TOTAL OR EXTINCTIVE NOVATION b. PARTIAL OR MODIFICATORY REQUISITES 1. THE EXISTENCE OF A VALID OLD OBLIGATION 2. THE INTENT TO EXTINGUISH OR TO MODIFY THE OLD OBLIGATION BY A SUBSTANTIAL DIFFERENCE 3. THE CAPACITY AND CONSENT OF ALL THE PARTIES 4. THE VALIDITY OF THE NEW OBLIGATION HOW IMPLIED NOVATION IN MAKING SUBSTANTIAL CHANGES 1. IN THE OBJECT OR SUBJECT MATTER OF THE CONTRACT 2. IN THE CAUSE OR CONSIDERATION OF THE CONTRACT 3. IN THE PRINCIPAL TERMS OR CONDITIONS OF THE CONTRACT EXPROMISION PERSON SUBSTITUTION OF THE DEBTOR FROM THE INITIATIVE OF A THIRD

REQUISITES 1. THE INITIATIVE COME FROM A THIRD PERSON 2. THE NEW DEBTOR AND THE CREDITOR MUST CONSENT 3. THE OLD DEBTOR MUST BE EXCUSED OR RELEASED FROM HIS OBLIGATION DELEGACION A METHOD OF NOVATION CAUSED BY THE REPLACEMENT OF THE OLD DEBTOR BY A NEW DEBTOR, WHO (THE OLD DEBTOR) HAS PROPSED HIM TO THE CREDITOR, AND WHICH REPLACEMENT HAS BEEN AGREED TO BY SAID CREDITOR AND SAID NEW DEBTOR PARTIES INVOLVED

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DELAGANTE DELEGATARIO DELEGADO ORIGINAL DEBTOR THE CREDITOR THE NEW DEBTOR

REQUISITES 1. THE INITIATIVE COMES FORM THE OLD DEBTOR 2. ALL PARTIES CONCERNED MUST CONSENT OR AGREE 3. CONSENT OF THE CREDITOR MAY BE a. GIVEN IN ANY FORM b. EXPRESS, OR IMPLIED FROM HIS ACTS c. BEFOIRE OR AFTER THE NEW DEBTOR HAS GIVEN HIS CONSENT d. CONDITIONAL, BUT THE CONDITION HAS TO BE FULFILLED; OTHERWISE, THERE IS NO VALID DELEGACION REQUISITES TO HOLD THE OLD DEBTOR LIABLE 1. THE INSOLVENCY WAS ALREADY EXISTING AND OF PUBLIC KNOWLEDGE AT THE TIME OF DELEGATION 2. OR THE INSOLVENCY WAS ALREADY EXISTING AND KNOWN TO THE DEBTOR AT THE TIME OF DELEGATION IF THE NEW OBLIGATION IS VOID, THERE IS NO NOVATION, AND THE OLD OBLIGATION WILL SUBSIST, EXCEPT WHEN THE PARTIES INTENDED THAT THE FORMER REALATION SHOULD BE EXTINGUISHED IN ANY EVENT. IF THE OLD OBLIGATION IS VIOD, THERE IS NO VALID NOVATION. IF THE OLD OBLIGATION WAS VIODABLEA AND HAS ALREADY BEEN ANNULLED, THERE IS NO MORE OBLIGATION. THEREFORE, THE NOVATION IS ALSO VIOD. IF THE ORIGINAL OBLIGATION WAS CONDITIONAL, THE CONDITIONS ATTACHED TO THE OLD OBLIGATION ARE ALSO ATTACHED TO THE NEW OBLIGATION, EXCEPT IF THRERE IS A CONTRARY STIPULATION. COMPENSATION THAT WHICH TAKES PLACE WHEN TWO PERSONS, IN THEIR OWN RIGHT, ARE CREDITORS AND DEBTORS OF EACH OTHER. IT IS A SORT OF BALANCING ( CUM PONDER TO WEIGH TOGETHER) BETWEEN TWO OBLIGATIONS; IT INVOLVES A FIGURATIVE OERATION OF WEIGHING TWO OBIGATIONS SIMULTANEOUSLY IN ORDER TO EXTINGUISH THEM TO THE EXTENT IN WHICH THE AMOUNT OF ONE IS COVERED BY THE OTHER. IT IS THE EXTINGUISHMENT IN THE CONCURRENT AMOUNT OF THE OBLIGATIONS OF THOSE PERSONS WHO ARE RECIPROCALLY DEBTORS AND CREDITORS OF EACH OTHER. CONFUSION OR MERGER THAT WHICH TAKES PLACE WHEN THE CHARACTERS OF CREDITOR AND DEBTOR ARE MERGED IN THE SAME PERSON. IT IS THE MEETING IN ONE PERSON OF THE QUALITIES OF CREDITOR AND DEBTOR WITH RESPECT TO THE SAME OBLIGATION. IF THE REASON FOR THE CONFUSION CEASES, THE OBLIGATION IS REVIVED. REQUISITES IT SHOULD TAKE PLACE BETWEEN THE PRINCIPAL DEBTOR AND CREDITOR THE MERGER MUST BE CLEAR AND DEFINITE THE VERY OBLIGATION INVOLVED MUST BE THE SAME OR IDENTICAL REMISSION OR WAIVER THAT ACT OF LIBERALITY WHEREBY A CREDITOR CONDONES THE OBLIGATION OF THE DEBTOR; THAT WHERE THE CREDITOR TELLS THE DEBTOR TO FORGET ABOUT THE WHOLE THING. REQUISITES 1. THERE MUST BE AN AGREEMENT

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2. 3. 4. 5. 6. THE PARTIES MUST BE CAPACITATED AND MUST CONSENT THERE MUST BE SUBJECT MATTER THE CAUSE OR CONSIDERATION MUST BE LIBERALITY THE REMISSION MUST NOT BE INOFFICIOUS FORMALITIES OF A DONATION ARE REQUIRED IN THE CASE OF AN EXPRESS REMISSION 7. WAIVERS OR REMISSIONS ARE NOT TO BE PRESUMED GENERALLU. THEY MUST BE CLEARLY, O BY ACTS ADMITTING OF NO OTHER REASONABLE EXPLAINATION. 1. EFFECT OR EXTENT a. TOTAL b. PARTIAL 2. DATE OF EFFECTIVITY a. INTER VIVOS (DURING LIFE) b. MORITS CAUSA (AFTER DEATH) 3. FORM a. IMPLIED OR TACIT b. EXPRESS OR FORMAL PAYMENT ONE OF THE WAYS BY WHICH AN OBLIGATION IS EXTINGUISHED AND CONSISTS IN THE DELIVERY OF THE THING OR THE RENDITION OF THE SERVICE WHICH IS THE OBJECT OF THE OBLIGATION. THE GRATUITOUS ABANDONMENT BY THE CREDITOR OF HIS RIGHT. CLASSES OR KINDS OF INDIVISIBILITY 1. CONVENTIONAL INDIVISIBILITY (BY COMMON AGREEMENT) 2. NATURAL OR ABSOLUTE INDIVISIBILITY (BECAUSE OF THE NATURE OF THE OBJECT OF UNDERTAKING 3. LEGAL INDIVISIBILITY (IF SO PROVIDED FOR BY LAW) OBLIGATIONS THAT ARE DEEMED INDIVISIBLE 1. OBLIGATION TO GIVE DEFINITE THINGS 2. THOSES WHICH ARE NOT SUSCEPTIBLE OF PARTIAL PERFORMANCE 3. EVEN IF THE THING IS PHYSICALLY DIVISIBLE, IT MAY BE INDIVISIBLE IF SO PROVIDED BY LAW 4. EVEN IF THE THING IS PHYSICALLY DIVISIBLE, IT MAY BE INDIVISIBLE IF SUCH WAS THE INTENTION OF THE PARTIES CONCERNED ARTICLE 1231 OBLIGATIONS ARE EXTINGUISHED BY: 1. PAYMENT OR PERFORMANCE 2. THE LOSS OF THE THING DUE 3. THE CONDONATION OR REMISSION OF THE DEBT 4. THE CONFUSION OR MERGER OF THE RIGHTS OF CREDITOR AND DEBTOR 5. COMPENSATION 6. NOVATION 7. OTHER CAUSES a. ANNULMENT b. RESCISSION c. FULFILLMENT OF A RESOLUTORY CONDITION d. PRESCRIPTION 8. STILL OTHER CAUSES a. DEATH OF A PARTY IN CASE THE OBLIGATION IS A PERSONAL ONE b. RESOLUTORY TERM

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c. d. e. f. g. CHANGE OF COVOL STATUS COMPROMISES MUTUAL DISSENT IMPOSSIBILITY OF FULFILLMENT FORTUITOUS EVENT

REQUISITES FOR A VALID PAYMENT 1. THE VERY THING OR SERVICE CONTEMPLATED MUST BE PAID 2. FULFILLMENT MUST BE COMPLETE BURDEN OF PROOF 1. AN ALLEGED CREDITOR HAS THE BURDEN OF SHOWING THAT A VALID DEBT EXISTS 2. ONE HE DOES THIS, THE DEBTOR HAS THE BURDEN OF PROVING THAT HE HAS PAID THE SAME SUBSTANTAIL PERFORMANCE IN GOOD FAITH 1. THE OBLIGEE IS BENEFITED. SO THE OBLIGOR SHOULD BE ALLOWED TO REVOCER AS IF THERE HAD BEEN A STRICT AND COMPLETE FULFILLMENT, LESS DAMAGES SUFFERED BY THE OBLIGEE. 2. THE LIABILITY OF THE DEBTOR FOR DAMAGES SUFFERED BY THE CREDITOR IN CASE OF SUBSTANTIAL PERFORMANCE DOES NOT ARISE. 3. EQUIVALENT TO FULFILLMENT OR PAYMENT, IT FOLLOWS THAT THE RIGHT TO RESCIND CANNOT BE USED SIMPLY BECAUSE THERE HAVE BEEN SLIGHT BREACHES OF THE OBLIGATION. IN FACT, SUCH RIGHT TO RESCINED IS NOT ABSOLUTE, AND THEREFORE THE COURT MAY EVEN GRANT, AT ITS DISCRETION, A PERIOD TO A PERSON IN DEFAULT, WITHIN WHICH THE OBLIGATION CAN BE FULFILLED. THE THIRD PERSON MAY PAY: 1. WITH THE KNOWLEDGE AND CONSENT OF THE DEBTOR (SUBJECT TO REIMBURSEMENT AND SUBROGATION) 2. WITHOUT THE DEBTORS KNOWLEDGE OR AGAINST HIS WILL (BENEFICIAL REIMBURSEMENT) SUBROGATION THE ACT OF PUTTING SOMEBODY INTO THE SHOES OF THE CREDITOR, HENCE, ENABLING THE FORMER TO EXERCISE ALL THE RIGHTS AND ACTIONS THAT COULD HAVE BEEN EXERCISED BY THE LATTER. THE LAW SAYS: SUBROGATION TRANSFERS TO THE PERSON SUBROGATED THE CREDIT WILL ALL THE RIGHTS THERETO PERTAINING, EITHER AGAINST THE DEBTOR OR AGAINST THIRD PERSONS, BE THEY GUARANTORS OR POSSESSORS OF MORTGAGES, SUBJECT TO STIPULATION IN A CONVENTIONAL SUBROGATION. IF PERSON PAYING HAS NO CAPACITY TO GIVE 1. PAYMENT IT NOT VALID IF ACCEPTED 2. CREDITOR CANNOT EVEN BE COMPELLED TO ACCEPT IT 3. THE REMEDY OF CONSIGNATION WOULD NOT BE PROPER REQUISITES PAYMENT TO ANY PERSON IN POSSESSION OF THE CREDIT 1. PAYMENT BY PAYOR MUST BE MADE IN GOOD FATIH (THIS IS PRESUMED, BUT PAYEE MAY BE IN GOOD OR BAD FAITH) 2. THE PAYEE MUST BE IN POSSESSION OF THE CREDIT ITSELF (NOT MERELY THE DOCUMENT EVIDENCING THE CREDIT) GARNISHMENT THE PROCEEDING BY WHICH A DEBTORS CREDITOR IS SUBJECTED TO PAYMENT OF HIS OWN DEBT TO ANOTHER IS KNOWN AS GARNISHMENT. IT CONSISTS IN THE CITATION OF SOME STRANGER TO THE LITIGATION, WHO IS THE DEBTOR OF ONE OF THE PARTIES TO THE ACTION. BY THIS MEANS SUCH DEBTOR-STRANGER BECOMES A

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FORCED INTERVENOR, AND THE COURT, HAVING ACQUIRED JURISDICTION OVER HIS PERSON BY MEANS OF THE CITATION REQUIRED OF HIM TO PAY HIS DEBT, NOT TO HIS FORMER CREDITOR, BUT TO THE NEW CREDITOR, WHO IS THE CREDITOR IN THE MAN LITIGATION. INTERPLEADER THE TECHNICAL NAME OF THE ACTION IN WHICH A CERTAIN PERSON IN POSSESSION OF CERTAIN PROPERTY WANTS CLAIMANTS TO LITIGATE AMONG THEMSELVES FOR THE SAME. THE REVISED RULES OF COURT PROVIDES: WHENEVER CONFLICTING CLAIMS UPON THE SAME SUBJECT MATTER ARE OR MAY BE MADE AGAINST A PERSON WHO CLAIMS NO INTEREST WHATEVER IN THE SUBJECT MATTER, OR AN INTEREST WHICH IN WHOLE OR IN PART IS NOT DISPUTED BY THE CLAIMANTS, HE MAY BRING AN ACTION AGAINST THE CONFLICTING CLAIMANTS TO COMPEL THEM TO INTERPLEAD AND LITIGATE THEIR SEVERAL CLAIMS AMONG THEMSELVES. INJUNCTION A JUDICIAL PROCESS BY VIRTUE OF WHICH A PERSON IS GENERALLY ORDERED TO REFRAIN FROM DOING SOMETHING. IT IS CALLED PRELIMINARY INJUNCTION IF THE PROHIBITION IS DURING THE PENDENCY OF CERTAIN PROCEEDINGS. DATION IN PAYMENT THAT MODE OF EXTINGUISHING AN OBLIGATION WHEREBY THE DEBTOR ALIENATES IN FAVOR OF THE CREDITOR, PROPERTY FOR THE SATISFACTION OF MONETARY DEBT. CONDITIONS UNDER WHICH A DATION IN PAYMENT WOULD BE VALID 1. IF THE CREDITOR CONSENTS, FOR A SALE PRESUPPOSES THE CONSENT OF BOTH PARTIES 2. IF THE DATION IN PAYMENT WILL NOT PREJUDICE THE OTHER CREDITORS, FOR THIS MIGHT LEAD THE DEBTOR TO CONNIVE WITH ONE CREDITOR IN DEFRAUDING THE OTHER CREDITORS. 3. IF THE DEBTOR IS NOT JUDICIALLY DECLARED INSOLVENT, FOR HERE HIS PROPERTY IS SUPPOSED TO BE ADMINISTERED BY THE ASSIGNEE 4. IN DATION, IT IS NOT ALWAYS NECESSARY THAT ALL THE PROPERTY OF THE DEBTOR WILL BE GIVEN TO SATISFY THE CREDIT LEGAL TENDER PAYMENT OF THE DEBT THAT WHICH A DEBTOR MAY COMPEL A CREDITOR TO ACCEPT IN

PAYMENT MUST BE MADE 1. IF THERE IS A STIPULATION IN THE PLACE DESIGNATED 2. IF THERE IS NO STIPULATION a. IF IT IS AN OBLIGATION TO DELIVER A DETERMINATE SPECIFIC THING, THEN IN THE PLACE WHERE THE THING MIGHT BE (USUALLY OR HABITUALLY) AT THE TIME THE OBLIGATION WAS CONSTITUTED. (IF MERELY TEMPORARY THERE, AS WHEN THE OBJECT IS BEING SHIPPED OR IS ALREADY IN THE OCEAN, PAYMENT SHOULD BE AT THE DOMCILE OF THE DEBTOR.) b. IF THE OBLIGATION IS ANY OTHER THING (AS WHEN IT IS TO DELUVER A GENERIC THING, OR TO GIVE MONEY, OR A PERSONAL OBLIGATION), DELIVERY MUST BE MADEAT THE DOMICILE OF THE DEBTOR. APPLICATION OF PAYMENTS THE DESIGNATION OF THE DEBT TO WHICH SHOULD BE APPLIED A PAYMENT MADE BY A DEBTOR WHO OWES SEVERAL DEBTS IN FAVOR OF THE SAME CREDITOR. STATED DIFFERENTLY, IT IS THE PHRASE APPLIED TO SHOW WHICH DEBT, OUT OF TWO OR MORE DEBTS OWING THE SAME CREDITOR, IS BEING PAID. REQUISITES 1. THERE MUST BE TWO OR MORE DEBTS 2. THE DENTS MUST NE OF THE SAME KIND 3. THE DEBTS ARE OWED BY THE SAME DEBTOR IN FAVOR OF THE SAME CREDITOR

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4. ALL THE DEBTS MUST BE DUE, UNLESS OF COURSE THE CONTRARY HAS BEEN STIPULATED 5. THE PAYMENT IS NOT ENOUGH TO EXTINGUISH ALL THE DEBTS RULES IN CASE NO APPLICATION OF PAYMENT HAS BEEN VOLUNTARILY MADE 1. APPLY IT TI THE MOST ONEROUS (IN CASE THE DUE AND DEMANDABLE DEBTS ARE OF DIFFERENT NATURES) 2. IF THE DEBTS ARE OF THE SAME NATURE AND BURDEN, APPLICATION SHALL BE MADE TO ALL PROPORTIONATELY CESSION OR ASSIGNMENT IN FAVOR OF CREDITORS THE PROCESS BY WHICH A DEBTOR TRANSFERS ALL THE PROPERTIES NOT SUBJECT TO EXECUTION IN FACOR OF HIS CREDITORS SO THAT THE LATTER MAY SELL THEM, AND THUS APPLY THE PROCEEDS TO THEIR CREDITS. REQUISITES FOR VOLUNTARY ASSIGNMENT 1. MORE THAN ONE DEBT 2. MORE THAN ONE CREDITOR 3. COMPLETE OR PARTIAL INSOLVENCY OF DEBTOR 4. ABANDONMENT OF ALL DEBTORS PROPERTY NOT EXEMPT FROM EXECUTION (UNLESS EXEMPTIO IS VALIDLY WAIVED BY DEBTOR) IN FAVOR OF CREDITORS 5. ACCEPTANCE OR CONSENT ON THE PART OF THE CREDITORS (FOR IT CANNOT BE IMPOSED ON AN UNWILLING CREDITOR) TENDER OF PAYMENT THE ACT OF OFFERING THE CREDITOR WHAT IS DUE HIM TOGETHER WITH A DEMAND THAT THE CREDITOR ACCEPT THE SAME CONSIGNATION THE ACT OF DEPOSITING THE THIS DUE WITH THE COURT OR JUDICIAL AUTHORITIES WHENEVER THE CREDITOR CANNOT ACCEPT OR REFUSES TO ACCEPT PAYMENT. IT GENERALLY REQUIRES A PRIOR TENDER OF PAYMENT. CONSIGNATION IS SUFFICIENT EVEN WITHOUT A PRIOR TENDER WHEN: 1. THE CREDITOR IS ABSENT OR UNKNOWN OR DOES NOT APPEAR AT THE PLACE OF PAYMENT 2. THE CREDITOR IS INCAPACITATED TO RECEIVE PAYMENT AT THE TIME IT IS DUE 3. WITHOUT JUST CAUSE, THE CREDITOR REFUSES TO GIVE A RECEIPT 4. WHEN TWO OR MORE PERSONS CLAIM THE SAME RIGHT TO COLLECT 5. WHEN THE TITLE OF THE OBLIGATION HAS BEEN LOST 6. WHEN THE DEBTOR HAD PREVIOUSLY BEEN NOTIFIED BY THE CREDITOR THAT THE LATTER WOULD NOT ACCEPT ANY PAYMENT REQUISITES OF CONSIGNATION 1. EXISTENCE OF A VALID DEBT 2. VALID PRIOR TENDER, UNLESS TENDER IS EXCUSED 3. PRIOR NOTICE OF CONSIGNATION 4. ACTUAL CONSIGNATION 5. SUBSEQUENT NOTICE OF CONSIGNATION EFFECTS OF PROPERLY MADE CONSIGNATION 1. THE DEBTOR MAY ASK THE JUDGE TO ORDER THE CANCELLATION OF THE OBLIGATION 2. THE RUNNING OF INTEREST IS SUSPENDED 3. HOWEVER, IT SHOULD BE OBSERVED THAT BEFORE THE CREDITOR ACCEPTS, OR BEFORE THE JUDGE DECLARES THAT CONSIGNATION HAS BEEN PROPERLY MADE,THE OBLIGATION REMAINS EFFECTS OF WITHDRAWAL BY DEBTOR AFTER CONSIGNATION

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1. THE OBLIGATION REMAINS 2. THE CREDITOR LOSES ANY PREFERENCE (PRIORITY) OVER THE THING 3. THE CO-DEBTORS, GUARANTORS AND SURETIES ARE RELEASED (UNLESS THEY CONSENTED) CONTRACTS CONTRACT A JURIDICAL CONVENTION MANIFESTED IN LEGAL FORM, BY VIRTUE OF WHICH, ONE OR MORE PERSONS (OR PARTIES) BIND THEMSELVES IN FAVOR OF ANOTHER OR OTHERS, OR RECIPROCALLY, TO THE FULFILLMENT OF A PRESTATION TO GIVE, TO DO OR NOT TO DO. 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. STAGES OF A CONTRACT 1. PREPARATIONHERE THE PARTIES ARE PROGRESISNG WITH THEIR NEGOTIATIONS; THEY HAVE NOT YET ARRIVED AT ANY DEFINITE AGREEMENT, ALTHOUGH THERE MAY HAVE BEEN A PRELIMINARY OFFER AND BARGAINING. 2. PERFECTION HERE THE PARTIES HAVE AT LONG LAST CAME TO A DEFINITE AGREEMENT, THE ELEMENTS OF DEFINITE SUBJECT MATTER AND VALID CAUSE HAVE BEEN ACCEPTED BY MUTUAL CONSENT. a. CONSENSUAL CONTRACTS MERE CONSENT b. REAL CONTRACTS DELIVERY i. DEPOSIT ii. PLEDGE iii. COMMODATUM LOAN WHERE THE IDENTICAL OBJECT MUST BE RETURNED c. FORMAL OR SOLEMN CONTRACTS SPECIAL FORM 3. CONSUMMATION HERE THE TERMS OF THE CONTRACT ARE PERFORMED, AND THE CONTRACT MAY BE SAID TO HAVE BEEN FULLY EXECUTED. ELEMENTS 1. ESSENTIAL ELEMENTS a. CONSENT IT IS THE MEETING OF THE MINDS BETWEEN THE PARTIES ON THE SUBJECT MATTER AND THE CAUSE OF THE CONTRACT, EVEN IF NEITHER ONE HAS BEEN DELIVERED. IT IS THE MANIFESTATION OF THE MEETHING OF THE OFFER AND THE ACCEPTANCE UPON THE THING AND THE CAUSE WHICH ARE TO CONSTITUTE THE CONTRACT. b. SUBJECT MATTER TO CREATE OR TO END OBLIAGATIONS WHICH, IN TUEN, MAY INVOLVE THINGS OR SERVICES. THE THING OR SERVICE. c. CAUSE THE ESSENTIAL AND IMPELLING REASON WHY A PARTY ASSUMES AN OBLIGATION. STRICTLY SPEAKING, THERE IS NO CAUSE OF A CONTRACT, BUT THERE IS A CAUSE FOR AN OBLIGATION. d. FORM e. DELIVERY 2. NATURAL ELEMENTS PRESUMED TO EXIST 3. ACCIDENTAL ELEMENTS PRESENT OR ABSENT CHARACTERISTICS OR BASIC PRINCIPLES OF CONTRACT 1. FREEDOM TO STIPULATE 2. OBLIGATORY FORCE AND COMPLIANCE IN GOOD FAITH 3. PERFECTION BY MERE CONSENT (CONSENSUALITY) AS A RULE 4. BOTH PARTIES ARE MUTUALLY BOUND 5. RELATIVELY (GENERALLY, IT IS BINDING ONLY BETWEEN THE PARTIES, THEIR ASSIGNS ANG HEIRS, HOWEVER, A PERSON WHO TAKES ADVANTAGE OF A CONTRACT,

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ALTHOUGH HE IS NOT A SIGNATORY THERETO, CAN PROPERLY BE BOUND BY THE TERMS THEREOF). RES INTER ALIOS ACTA NEQUE NOCET PRODEST THE ACT, DECLARATION, OR OMMISSION OF ANOTHER, CANNOT AAFFECT ANOTHER, EXCEPT OTHERWISE PROVIDED BY LAW OR AGREEMENT. STIPULATION POUR AUTRUI A STIPULATION IN FAVOR OF A THIRD PERSON CONFERRING A CLEAR AND DELIBERATE FAVOR UPON HIM, AND WHICH STIPULATION IS MERELY A PART OF A CONTRACT ENTERED INTO BY THE PARTIES, NEITHER OF WHOM ACTED AS AGENT OF THE THIRD PERSON. REQUISITES 1. THERE MUST BE A STIPULATION IN FAVOR OF A THIRD PERSON 2. THE STIPULATION MUST BE A PART, NOT THE WHOLE, OF THE CONTRACT 3. THE CONTRACTING PARTIES MUST HAVE CLEARLY AND DELIBERATELY CONFERRED A FAVOR UPON A THIRD PERSON, NOT A MERE INCIDENTAL BENEFIT OR INTEREST 4. THE THIRD PERSON MUST HAVE COMMUNICATED HIS ACCEPTANCE TO THE OBLIGOR BEFORE ITS REVOCATION 5. NEITHER OF THE CONTRACTING PARTIES BEARS THE LEGAL REPRESENTATION OR AUTHORIZATION OF THE THIRD PARTY REQUISITES FOR A PERSON TO CONTRACT IN THE NAME OF ANOTHER 1. HE MUST BE DULY AUTHORIZED (EXPRESSLY OR IMPLIEDLY) 2. OR HE MUST HAVE BY LAW A RIGHT TO REPRESENT HIM 3. OR THE CONTRACY MUST BE SUBSEQUENTLY RATIFIED REQUISITES OF CONSENT 1. THERE MUST BE TWO OR MORE PARTIES 2. THE PARTIES MUST BE CAPABLE OR CAPACITATED 3. THERE MUST BE NO VITIATION OF CONSENT 4. THERE MUST BE NO CONFLICT BETWEEN WHAT WAS EXPRESSLY DECLARED AND WHAT WAS REALLY INTENDED. OTHERWISE, THE REMEDY MAY BE REFORMATION, AS WHEN THE PARTIES REALLY INTENDED TO BE BOUND, OR ELSE THE CONTRACT IS VOID, AS WHEN THE CONTRACT IS FICTITOUS OR ABSOLUTELY SIMULATED 5. THE INTENT MUST BE DECLARED PROPERLY REQUISITES FOR THE MEETING OF THE MINDS 1. AN OFFER THAT MUST BE CERTAIN 2. AND AN ACCEPTANCE THAT MUST BE UNQUALIFIED AND ABSOLUTE ACCEPTANCE MADE BY LETTER OR TELEGRAM DOES NOT BIND THE OFFERER EXCEPT FROM THE TIME IT AME TO HIS KNOWLEDGE. THE CONTRACT IN SUCH A CASE IS PRESUMED TO HAVE BEEN ENTERED INTO IN THE PLACE WHERE THE OFFER WAS MADE. THE KNOWLEDGE MAY BE ACTUAL OR CONSTRUCTIVE (AS WHEN THE LETTER OF ACCEPTANCE HAS BEEN RECEIVED IN THE HOUSE OF THE OFFERER BY A PERSON POSSESSED OF REASONABLE DISCERNMENT). IF ACTUAL KNOWLEDGE BE REQUIRED, PROOF OF THIS WOULD BE ALMOST IMPOSSIBLE, FOR EVEN WHEN THE LETTER CONTAINING THE ANSWER HAS BEEN OPENED AND READ, THE OFFERER CAN ALWAYS CLAIM, IN SOME CASES TRUTHFULLY, THAT WHILE HE WAS READING THE SAME, HIS MIND WAS ELSEWHERE, AND HE DID NOT ACTUALLY KNOW THE CONTENTS OF SAID ANSWER. ARTICLE 1324 WHEN THE OFFERER HAS ALLOWED THE OFFEREE CERTAIN PERIOD TO ACCEPT, THE OFFER MAY BE WITHDRAWN AT ANY TIME BEFORE ACCEPTANCE BY COMMUNICATING SUCH WITHDRAWAL, EXCEPT WHEN THE OPTION IS FOUNDED UPON A CONSIDERATION, AS SOMETHING PAID OR PROMISED.

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IF THE OFFERER HAS ALLOWED THE OFFEREE A CERTAIN PERIOD TO ACCEPT, THE OFFER MAY BE WITHDRAWN AT ANY TIME BEFORE ACCEPTANCE ( OR THE THING BEING OFFERED) BY COMMUNICATING SUCH WITHDRAWAL. OPTION A CONTRACT GRANTING A PERSON THE PRIVILEGE TO BUY OR NOT TO BUY CERTAIN OBJECTS AT ANY TIME WITHIN THE AGREED PERIOD AT A FIXED PRICE. THE CONTRACT OF OPTION IS A SEPRATE AND DISTINCT CONTRACT FROM THE CONTRACT WHICH THE PARTIES MAY ENTER INTO UPON THE CONSUMMATION OF THE CONTRACT. THEREFORE, AN OPTION MUST HAVE ITS OWN CAUSE OR CONSIDERATION, A CAUSE DISTINCT FROM THE SELLING PRICE ITSELF. OF COURSE, THE CONSIDERATION MAY BE PURE LIBERTY. BUSINESS ADVERTISEMENTS 1. IF APPEARS TO BE A DEFINITE OFFER CONTAINING ALL THE SPECIFIC PARTICULARS NEEDED IN A CONTRACT, IT REALLY IS A DEFINITE OFFER 2. IF IMPORTANT DETAILS ARE LEFT OUT, THE ADVERTISEMENT IS NOT A DEFINITE OFFER, BUT A MERE INVITATION TO MAKE AN OFFER MISTAKE OR ERROR IT IS A FALSE BELIEF ABOUT SOMETHING

REQUISITES 1. THE ERROR MUST BE SUBSTANTIAL REGARDING: a. THE OBJECT OF THE CONTRACT b. THE CONDITIONS WHICH PRINICPALLY MOVED OR INDUCED ONE OF THE PARTIES c. IDENTITY OR QUALIFICATIONS, BUT ONLY IF SUCH WAS THE PRINCIPAL CAUSE OF THE CONTRACT 2. THE ERROR MUST BE EXCUSABLE 3. THE ERROR MUST BE A MISTAKE OF FACT, AND NOT OF LAW VIOLENCE PHYSICAL COERCION

REQUISITES 1. EMPLOYMENT OF SERIOUS OR IRRESISTIBLE FORCE 2. IT MUST HAVE BEEN THE REASON WHY THE CONTRACT WAS ENTERED INTO INTIMIDATION MORAL COERCION

REQUISITES 1. REASONABLE AND WELL GROUNDED FEAR 2. OF AN IMMINENT AND GRAVE EVIL 3. UPON HIS PERSON, PROPERTY, OR UPON THE PERSON OR PROPERTY OF HIS SPOUSE, DESCENDANTS OR ASCENDANTS 4. IT MUST HAVE BEEN THE REASON WHY THE CONTRACT WAS ENTERED INTO 5. THE THREAT MUST BE OF AN UNJUST ACT, AN ACTIONABLE WRONG UNDUE INFLUENCE TO VITIATE CONSENT REQUISITES 1. IMPROPER ADVANTAGE 2. POWER OVER THE WILL OF ANOTHER 3. DEPRIVATION OF THE LATTERS WILL OF A REASONABLE FREEDOM OF CHOICE DOLO INCIDENTE

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DOLO CAUSANTE THE USE OF INSIDIOUS WORDS AND MACHINATIONS BY INE OF THE CONTRACTING PARTIES TO INDUCE THE OTHER PARTY TO ENTER INTO A CONTRACT, WHICH, WITHOUT THEM, HE WOULD NOT HAVE AGREED TO. REQUISITES 1. THE FRAUD MUST BE MATERIAL AND SERIOUS, THAT IS, IT REALLY INDUCED THE CONSENT 2. THE FRAUD MUST HAVE BEEN EMPLOYED BY ONLY ONE OF THE CONTRACTING PARTIES 3. THERE MUST BE DELIBERATE INTENT TO DECIEVE OR TO INDUCE 4. THE OTHER PARTY MUST HAVE RELIED ON THE UNTRUE STATEMENT AND MUST HIMSELF NOT BE GUILTY OF NEGLIGENCE IN ASCERTAINING THE TRUTH CAVEAT EMPTOR THE BUYER MUST BE ON HIS GUARD

SIMULATION OF CONTRACT THE PROCESS OF INTENTIONALLY DECEIVING ITHERS BY PRODUCING THE APPERANCE OF A CONTRACT THAT REALLY DOES NOT EXIST (ABSOLUTE SIMULATION) OR WHICH IS DIFFERENT FROM THE TRUE AGREEMENT (RELATIVE SIMULATION) REQUISITES 1. AN OUTWARD DECLARATION OF WILL DIFFERENT FROM THE WILL OF THE PARTIES 2. THE FALSE APPEARANCE MUST HAVE BEEN INTENDED BY MUTUAL AGREEMENT 3. THE PURPOSE IS TO DECEIVE THIRD PERSONS REQUISITES OF CONSENT 1. THE THING OR SERVICE MUST BE WITHIN THE COMMERCE OF MAN 2. MUST BE TRANSMISSIBLE 3. MUST NOT BE CONTRARY TO LAW, MORALS, GOOD CUSTOMS, PUBLIC ORDER, OR PUBLIC POLICY 4. MUST NOT BE IMPOSSIBLE 5. MUST BE DETERMINATE AS TO ITS KIND OR DETERMINABLE WITHOUT THE NEED OF A NEW CONTRACT OR AGREEMENT TRANSMISSIBLE ALL RIGHTS WHICH ARE NOT INTRANSMISSIBLE MAY BE THE OBJECT OF CONTRACTS. BUT STRICTLY POLITCAL OR PERSONAL RIGHTS CANNOT BE THE SUBJECT OF A CONTRACT CLASSIFICATION OF CONTRACTS AS TO CAUSE 1. ONEROUS EXCHANGE OF CONSIDERATION 2. REMUNERATORY PAYMENT OF PAST PERFORMANCE 3. GRATUITOUS FREE REQUISITES OF CAUSE 1. IT MUST BE PRESENT AT THE TIME THE CONTRACT WAS ENTERED INTO 2. IT MUST BE TRUE 3. IT MUST BE LAWFUL EFFECT IF CAUSE IS ILLEGAL 1. IF ONE PARTY IS INNOCENT HE CANNOT BE COMPELLED TO PERFORM HIS OBLIGATION, AND HE MAY RECOVER WHAT HE HAS ALREADY GIVEN 2. IF BOTH PARTIES ARE GUILTY, IN GENERAL, NEITHER CAN SUE THE OTHER, THE LAW LEACING THEM AS THEY ARE LESION IT IS INADEQUACY OF CAUSE, LIKE AN INSUFFICIENCY OF PRICE DOES NOT INVALIDATE A CONTRACT WHEN FORM IS IMPORTANT

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1. FOR VALIDITY 2. FOR ENFORCEABILITY 3. FOR CONVENIENCE -

PUBLIC DOCUMENTS

REFORMATION IS THAT REMEDY IN EQUITY BY MEANS OF WHICH A WRITTEN INSTRUMENT IS MADE OR CONSTRUED SO AS TO EXPRESS OR CONFORM TO THE REAL INTENTION OF THE PARTIES WHEN SOME ERROR OR MISTAKE AS BEEN COMMITTED. REQUISITES FOR THE ACTION FOR REFORMATION 1. THERE MUST BE A MEETING OF THE MINDS 2. THE TRUE INTENTION IS NOT EXPRESSED IN THE INSTRUMENT 3. THERE MUST BE CLEAR AND CONVINCING PROFF THEREOF 4. IT MUST BE BROUGHT WITHIN THE PROPER PRESCRIPTIVE PERIOD 5. THE DOCUMENT MUST NOT REFER TO A SIMPLE UNCONDITIONAL DONATION INTER VIVOS, OR TO WILLS, OR TO A CONTRACT WHERE THE REAL AGREEMENT IS VOID. INTERPRETATION OF CONTRACTS NO MATTER HOW CONCRETE SOMETHING IS, IT WOULD STILL BE SUSCEPTIBLE TO A CLOUD OF AMBIGUITY WHICH CANNOT BE MADE PERFECTLY, NO MATTER HOW DISCREET ARE THE WORDINGS ARE. DOUBTS INCIDENTAL CIRCUMSTANCES IF GRATUITOUS, APPLY THE RULE OF LEAST TRANSMISSION OF RIGHTS AND INTEREST IF ONEROUS, APPLY THE RULE OF THE GREATEST RECIPROCITY OF INTERESTS RESCISSION A PROCESS DESIGNATED TO RENDER INEFFICACIOUS A CONTRACT VALIDLY ENTERED INTO AND NORMALLY BINDING BY REASON OF EXTERNAL CONDITIONS, CAUSING AN ECONOMIC PREJUDICE TOA PARTY OR TO HIS CREDITORS. A REMEDY GRANTED BY LAW TO THE CONTRACTING PARTIES BOTH TO CONTRACTING PARTIES AND TO THIRD PERSONS IN ORDER TO SECURE REPARATION OF DAMAGES CAUSED THEM BY A CONTRACT, EVEN IF THE CONTRACT BE VALID, BY MEANS OF THE RESTORATION OF THINGS TO THEIR CONDITION PRIOR TO THE CELEBRATION OF SAID COTNRACT. A RELIEF TO PROTECT ONE OF THE PARTIES OR A THIRD PERSON FROM ALL INJURY OR DAMAGES WHICH THE CONTRACT MAY CUASE, TO PROTECT SOME PREFERENTIAL RIGHT. REQUISITES FOR RESCISSION 1. THERE MUST BE AT THE BEGINNING EITHER A VALID OR A VOIDABLE CONTRACT 2. BUT THERE IS AN ECONOMIC OF FINANCIAL PREJUDICE TO SOMEONE (LESION) 3. REQUIRES MUTUAL RESTITUTION MUTUAL DISSENT CANCEL THE CONTRACT BADGES OF FRAUD IT IS THE WILL OF THE PARTIES THAT CONSTITUTE THE BASIS TO INSTANCES PRESUMED IN FRAUD OF CREDITORS.

A GRATUITOUS CONVEYANCE OR DONATION VALIDLY EXECUTED IS, ON ITS FACE ( PRIMA FACIE), PRESUMED VALID AND GOOD AS BETWEEN THE PARTIES. IT CANNOT BE DECALRED FRAUDULENT AND, THEREFORE, SUBJECT TO RESCISSION UNLESS IT CAN BE SHOWN THAT AT THE TIME OF THE EXECUTION OF THE CONVEYANCE, THERE WAS A CREDITOR OR CREDITORS WHOM SAID TRANSACTION MAY AFFECT ADVERSELY. VOIDABLE CONTRACT VALID TILL ANNULLED. IT CANNOT BE ANNULLED IF THERE IS RATIFICATION. THE DEFECT IS MORE OR LESS INTRINSIC. CONFIRMATION RATIFICATION TO CURE A DEFECT IN A VOIDABLE CONTRACT

TO CURE THE LACK OF AUTHORITY IN AN AUTHORIZED CONTRACT

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REQUISITES 1. THE CONTRACT MUST BE A VOIDABLE ONE 2. THE PERSON RETIFYING MUST KNOW THE REASON FOR THE CONTRACT BEING VOIDABLE 3. THE CAUSE MUST NOT EXIST OR CONTINUE TO EXIST ANYMORE AT THE TIME OF RATIFICATION 4. THE RATIFICATION MUST HAVE BEEN MADE EXPRESSLY OR BY AN ACT IMPLYING A WAIVER OF THE ACTION TO ANNUL 5. THE PERSON RATIFYING MUST BE THE INJURED PARTY ACKNOWLEDGEMENTTO REMEDY A DEFICIENCY OF PROOF

THE CREDITORS OF THE VICTIM CANNOT ASK FOR ANNULMENT FOR THEY ARE NOT BOUND BY THE CONTRACT, HOWEVER, THEY MAY ASK FOR RESCISSION ONLY UNENFORCEABLE CONTRACTS CANNOT BE SUED UPON OR ENFORCED UNLESS RATIFIED; THUS, IT IS AS IF THEY HAVE NO EFFECT YET. BUT THEY MAY BE RATIFIED; HENCE, THEY CAN HAVE IN SUCH A CASE THE EFFECT OF VALID CONTRACTS. IN ONE SENSE, THEREFORE, THEY MAY BE CALLED VALIDABLE. THUS, UNENFORCEABLE CONTRACTS ARE NEARER ABSOLUTE NULLITY THAN VOIDABLE AND RESCISSIONABLE CONTRACTS. KINDS 1. UNAUTHORIZED CONTRACTS 2. THOSE THAT FAIL TO COMPLY WITH THE STATUE OF FRAUDS 3. THOSE WHERE BOTH PARTIES ARE INCAPABLE OF GIVING CONSENT TO A CONTRACT THE STATUTE OF FRAUDS EVIDENTIARY CONCEPT, IF NOT IN WRITING CANNOT BE INVOKE IN A COURT PROCEDURE. IN ETHE EXECUTORY STAGE ONLY. BASIC PRINCIPLES 1. APPLIES ONLY TO EXECUTORY CONTRACTS AND NOT PARTIALLY OR COMPLETELY EXECUTED CONTRACTS. 2. CANNOT APPLY IF THE ACTION IS NEITHER FOR DAMAGES BECAUSE OF THE VIOLATION OF AGREEMENT NOR FOR THE SPECIFIC PERFORMANCE OF SAID AGREEMENT 3. EXCLUSIVE, APLLIES ONLY TO THE AGREEMNENTS OR CONTRACTS ENUMERATED HEREIN. 4. THE DEFENSE MAY BE WAIVED 5. A PERSONAL DEFENSE, THAT IS, A CONTRACT INFRINGING IT CANNOT BE ASSAILED BY THIRD PERSONS a. FAILURE TO OBJECT TO THE PRESTATION OF ORAL EVIDENCE b. ACCEPTANCE OF BENEFITS UNDER THEM 6. NOT VOID, ENFORCEABLE 7. DOES NOT DETERMINE THE CREDIBILITY OR WEIGHT OF EVIDENCE 8. DOES NOT APPLY IF IT IS CLAIMED THAT THE CONTRACT DOES NOT EXPRESS THE TRUE AGREEMENT OF THE PARTIES VOID CONTRACTS NO EFFECT AT ALL; CANNOT BE RATIFIED OR VALIDATED

SPECIAL CLASSIFICATION INEXISTENT ONES (LIKOE THOSE WHERE ESSENTIAL FORMALITIES ARE NOT COMPLIED WITH) ILLEGAL OR ILLICIT ONES (LIKE A DONATION MADE BECAUSE OF AN IMMORAL CONDITION) 1. WITH CRIMINAL OFFENSE a. BOTH PARTIES ARE GUILTY i. IN PARI DELICTO, NO ACTIONS AGAINST EACH OTHER

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ii. BOTH SHALL BE PROSECUTED iii. THE EFFECTS OR THE INTRUMENTS OF THE CRIME SHALL BE CONFISCATED IN FAVOR OF THE GOVERNMENT b. ONLY ONE IS GUILTY i. THE GUILTY PARTY WILL BE PROSECUTED ii. THE INSTRUMENT OF THE CRIME WIILL BE CONFISCATED iii. THE INNOCENT ONE MAY CLAIM WHAT HE HAS GIVEN; OR IF HE HAS NOT GIVEN ANYTHING, HE SHALL NOT BE BOUND TO COMPLY WITH HIS PROMISE 2. WITHOUT CRIMINAL OFFENSE a. BOTH PARTIES ARE GUILTY i. NEITHER MAY RECOVER WHAT HE HAS GIVEN b. ONLY ONE IS GUILTY i. THE GUILTY PARTY CANNOT RECOVER WHAT HE HAS GIVEN BY REASON OF THE CONTRACT, OR ASK FOR THE FULFILLMENT OF WHAT HAD BEEN PROMISE HIM ii. THE PARTY NOT AT FAULT MAY DEMAND THE RETURN OF WHAT HE HAS GIVEN, WITHOUT ANY OBLIGATION TO COMPLY WITH HIS PROMISE CHARACTERISTICS OF A VOID CONTRACT 1. THE RIGHT TO SET UP THE DEFENSE OF ILLEGALITY CANNOT BE WAIVED, AND MAY BE CINSIDERED ON APPEAL EVEN IF NOT RAISED IN THE TRIAL COURT 2. THE ACTION OR DEFENSE FOR THEIR DECLARATION AS INEXISTENT DOES NOT PRESCRIBE 3. THE DEFENSE OF ILLEGALITY OF CONTRACTS IS NOT AVAILABLE TO THIRD PERSONS WHOSE INTERESTS ARE NOT DIRECTLY AFFECTED 4. CANNOT GIVE RISE TO A CONTRACT 5. GENERALLY PRODUCES NO EFFECT 6. GENERALLY, NO ACTION TO DECLARE THEM VOID IS NEEDED, SINCE THEY ARE INEXISTENT FROM THE VERY BEGINNING 7. THEY CANNOT BE RATIFIED IN PARI DELICTO 1. THE DOCTRINE DOES NOT APPLY TO FICTUITOUS OR ABSOLUTELY SIMULATED CONTRACTS 2. THE DOCTRINE DOES NOT APPLU WHERE A SUPERIOR PUBLIC POLICY INTERVENES 3. DOES NOT APPLU IN CASE OF VOID CONTRACTS WHICH ARE SIMULATED TO CIRCUMVENT THE LAW INSTANCE WHERE RECOVERY CAN BE HAD EVEN IN THE PRESENCE OF PARI DELICTO 1. IF THE PURPOSE HAS NOT YET BEEN ACCOMPLISHED 2. OR IF THE DAMAGE HAS NOT BEEN CAUSED ANY THIRD PERSON VOLUNTARY FULFILLMENT THE DEBTOR COMPLIED WITH THE SAME EVEN IF HE KNEW THAT HE COULD NOT HAVE BEEN LEGALLY FORCED TO DO SO. ESTOPPEL A BAR WHICH PRECLUDED A PERSON FROM DENYING OR ASSERTING ANYTHING CONTRARY TO THAT WHICH HAS BEEN, IN CONTEMPLATIO OF LAW, ESTABLISHED AS THE TRUTH EITHER BY ACTS OF JUDICIAL OR LEGISLATIVE OFFICERS, OR BY HIS OWN DEED OR REPRESENTATION EITHER EXPRESS OR IMPLIED. TRUST THE RIGHT TO THE BENEFICIAL ENJOYMENT OF PROPERTY THE LEGAL TITLE TO WHICH IS VESTED IN ANOTHER. TO DEAL WITH PROPERTY FOR THE BENEFIT OF ANOTHER. *THANK YOU AND GOODLUCK*

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