COURSE SYLLABUS IN OBLIGATIONS AND CONTRACTS

Goal: For the students:

(1) To know the concept and significance of their rights and obligations
in dealing with property relations;
(2) To understand and apply the provisions of law in obligations and
contracts through reading and understanding cases;
(3) To handwrite legibly digested cases to prepare them for a written
examination and for them to improve their writing strokes.
I. PRESCRIPTION
Articles 1106-1155
1. Significant application of extinctive prescription
2. How to set up the defense of prescription
3. Doctrine of Laches
4. Acquisitive prescription
5. Distinction between prescription and laches
6. Interruption of prescriptive period
7. Actions which do not prescribe
Cases: Mapa III vs. Guanzon, 77 SCRA; Nelson and Co., vs Lepanto Mining,
Co, vs 18 SCRA 1040; Agra, et al., v. PNB. G.R. No. 133317, June 29, 1999;
Cruz v. CA., February 18, 1991; PLDT v. Pingol, G.R. No. 182622, Sept. 8,
2010; Lourdes Suites v. Binarao, G.R. No. 204729, August 06, 2014; China
Banking Corp., v. Commissioner of Internal Revenue, G.R. No. 172509,
February 4, 2015
II. OBLIGATIONS:
A. General Provisions (Articles 1156 to 1162)
1. Concept, Requisites, Classification of Obligations
2. Sources of Obligations
a. Obligations arising from law
b. Obligations arising from Contracts

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c. Obligations arising from Quasi Contracts

d. Obligations arising from Criminal Offenses
e. Obligations arising from Quasi Delicts
B. Nature and Effect of Obligations (Articles 1163 to 1178)
1. Obligations to give
a. Nature or right of creditor
b. Rights of creditor in determinate obligations
c. Rights of creditor in generic obligations
d. Obligations of debtor in determinate obligations
e. Obligations of a debtor in generic obligations
2. Obligations to do; Effects of Breach
3. Obligations not to do; Effects of Breach
Breach of Obligations
1. Voluntary breach through default or mora
2. Voluntary breach through fault or dolo
3. Voluntary Breach through Negligence or culpa
4. Voluntary breach through contravention of tenor thereof
Concept of Fortuitous Events
1. Classification
2. Effect upon obligation
3. Essential Conditions
4. Exception
Usurious Transactions
Extinguishment of Interests and Prior Installments
Remedies of Creditors to Protect Credit
1. Exhaustion of debtors property
2. Accion subrogatoria
3. Accion pauliana
Cases: Samson vs CA, 238 SCRA 397; Nakpil vs CA, 144 Scra 596; Sia vs CA,
222SCRA 24; Adorable vs CA, 319 SCRA 2000; Fideldia, et al., v. Soncuan, et

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al., G.R. No. 151352, August 29, 2005; Jose et al., v. Novida et al., G.R. No.
177374, July 02, 2014; CCC Insurance Corp. v. Kawasaki Steel Corp.,et al., G.
R. No. 15616, June 22, 2015;

C. DIFFERENT KINDS OF OBLIGATIONS (Articles 1179 to 1230)

1. Pure and Conditional Obligations (Articles 1179 to 1192)
a. Pure obligation
b. Conditional obligations
c. Classification of conditions
aa. Suspensive and Resolutory conditions
bb. Potestative, Casual and Mixed conditions
cc. Possible and Impossible conditions
dd. Positive and negative conditions
d. Constructive fulfillment of suspensive conditions
Effect of suspensive conditions before fulfillment
Effect of suspensive condition after fulfillment
Effect of loss, deterioration or improvement
e. Effect of resolutory conditions
Before fulfillment
After fulfillment
f. Concept of reciprocal obligations
Necessity of judicial action
Nature of breach
Alternative remedies of injured party
Damages to be awarded
Effect of rescission
Effect upon third person
Effect of breach by both parties
Cases: Lao Lim vs CA, 191 SCRA 150; Patente vs Omega, G.R. No. L-4433,
May 29, 1953, 93 Phil 218; Angeles vs CA, 250 SCRA 223; UFC vs CA, 33
SCRA 1; Ong vs CA, 310 SCRA 1999

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2. Obligations With a Period

a. Concept of term or a period
Distinguished from condition
Classification of a term or a period
Effect of fortuitous event
b. Effect of advanced payment or delivery
c. Benefit of term or period
d. Judicial term or period
When court may fix term
Nature of action
Effect of judicial period
c. Extinguishment of debtors right to period
3. Alternative and Facultative Obligations
a. Concept
b. Right of choice in alternative obligations
Limitations upon right of choice
When choice takes effect
Effect upon obligation
When only one prestation is practicable
When choice is rendered impossible
c. Effects of loss of objects of obligation
If right belongs to the debtor
If right belongs to the creditor
d. Nature of facultative obligations
Distinguished from alternative obligations
When substitution take effect
Effect of loss of substitute
4. Joint and Solidary Obligations
a. Concept
b. Nature of Collective Obligations in general

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c. Joint Divisible obligations

d. Joint Indivisble obligations
Effect of breach
Effect of insolvency of a debtor
Interruption of period of prescription
e. Indivisibility and solidarity
Kinds of solidarity
Effect of active solidarity in general
Effect of passive solidarity in general
f. Effect of varied conditions or periods
Effect of beneficial and prejudicial acts
Effect of assignment of rights
Effect of demand by a creditor
Effect of Novation
Effect of compensation and confusion
Effect of remission
Effect of payment to a creditor
Effect of demand upon a debtor
Effect of payment by a debtor
Effect of loss or impossibility of performance
g. Defense available to a solidary debtor
h.
Cases: Lakarge Cement Phils. Vs. Continental Cement Corp., et al., G.R. No.
155173, Nov. 23, 2004; Agoncillo vs Javier, 38 Phil. 424; Ynchausti vs. Yulo,
34 Phils. 978
5. Divisible and Indivisible Obligations
a. Concept
Relation to divisibility and indivisibility of things
b. Effect of divisible or indivisible obligations
Breach of joint indivisible obligations
c. Determination of divisibility and indivisibility

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In obligations to give
In obligations to do
In obligations not to do

6. Obligations with Penal Clause

a. Concept
Purpose of penalty
Kinds of penalty
b. Effect of penalty; general rule
Exceptions
Enforceability of penalty
c. Limitation upon right of debtor
Limitation upon right of creditor
d. Proof of actual damages
e. When penalty may be reduced
f. Nullity of obligation or penalty; effect
Cases: Garcia vs CA, 167 SCRA 815; Insular Bank of Asia and America vs. Sps.
Salazar, 159, SCRA, 111; Umali vs Miclat, 105 Phil. 1109)
D. Extinguishment of Obligations
General provisions
Modes of extinguishing obligations
1. Payment or performance
Concept
When obligation is paid or performed
Who may pay obligation
aa. Payment by a third person
Right of creditor
Right of third person

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Right of reimbursement
Right of subrogation
Gratuitous payments
bb. Capacity to make payment
cc. To whom payment must be made
Persons authorized to receive payment
Payment to unauthorized persons
Exceptions
Payment to incapacitated persons
Payment to third persons
Payment to possessors of credit
Payment after judicial order of retention 1243
dd. What must be paid 1246
Effect of dation in payment
Effect is object is generic
ee.Expenses of payment 1247
ff. Character of payment
gg. Rule in monetary obligations 1249
Effect of R.A. Nos. 529 and 4100
Meaning of legal tender
Payments with negotiable paper
hh. Effect of extra ordinary inflation and deflation
ii. Place of payment.
B. Application of payment (Articles 1252 to 1254)
a. Concept (1252)
Requisites
Right of debtor to make applications
Exception
Time when right is exercised
b. Limitation upon right to apply payment (1253)
c. Legal application of payment (1254)

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When debts are not of the same burden

When debts are of same burden
C. Payment by cession (1255)
Concept
Requisites
Kinds
Distinguished from dation in payment
Effect
Cases: Filinvest Credit Corp., vs. Phil. Acetylene Co., 197 Phil. 394;
haw Pia vs. China Banking Corp., 80 Phil. 604;
D. Tender of Payment and Consignation (Articles 1256-1261)
a. Concept (1256 1258)
Distinctions
General requisites of consignation
Special requisites of Consignation
Subject matter of consignation
b. Expenses of consignation (1259)
c. Effects of consignation (1260-1261)
Effect of withdrawal
Cases: PNB vs Teves, L-8076, 8813, Dec. 14, 1951; New pacific Timber
and Supply Co. vs Judge Seneris, 101 SCRA 686; Singson vs. Caltex
[Inc.], G.R. No. 1327798, Oct. 4, 2000; Hubonhua vs CA, G.R. Nos.
95897 and 102604, Dec. 14, 1999; Velasco vs. Manila Electric Co., 42
SCRA 556; Lantion vs NLRC, 181 SCRA 513; Roman Catholic Bishop of
Malolos, Inc. vs IAC, 191 SCRA 411;
2. Loss of the thing due (Articles 1262 1269)
a. Concept
Effect of loss in determinate obligation to give (1262)
Effect of fortuitous event

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Exception
b. Effect of loss in generic obligation to give (1263)
Effect of partial loss (1264)
c. Rule if things is in debtors possession (1265)
d. Effect of impossibility of performance in obligation (1266)
Effect
Effect in obligations to do
e. Effect of relative impossibility (1267)
f. Rule if obligations arises from criminal offense (1268)
g. Effect of extinguishment of obligations
Case: Naga Telephone Co., et al. vs CA, et al., Feb. 24, 1994

3. Condonation or remission of the debt (1270 -1274)

a. Concept
Requisites
Kinds
Gratuitous character of remission (1270)
Necessity of acceptance by debtor
Applicability of rules on donations
Extent of remission
Form of express remission
Form of implied remission
b. Effect of delivery of evidence of credit to debtor (1272)
c. Effect of remission in general (1273 1274)
Effect upon accessory obligation
Rule in pledge
4. Confusion or merger of rights (Articles 1275 1277)
a. Concept of Confusion (1275)
Requisites
Kinds

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b. Effect upon accessory obligations (1276)

c. Effect upon collective obligation (1277)
Effect of revocation of confusion
Cases: Testate Estate of Mota vs. Serra, 40 Phil 464; Yek Tong Lin Fire
and Marine Insurance Co. vs Yusingco, 46 Phil 473
5. Compensation (Articles 1278 1290)
a. Concept of Compensation (1278)
Distinguish from payment
Distinguish from confusion
Distinguish from counterclaim
b. Kinds of compensation
c. Requisites of compensation (1279)
As to parties
Bound as principals
As to objects
As to maturity
As to liquidation and demandability
As to claims of third persons
d. Right of guarantor to set up compensation (1280)
e. Voluntary compensation (1281-1282)
f. Judicial compensation (1283)
g. Rules in case of rescissible or voidable debts (1284)
h. Effect of assignment of rights (1285)
When compensation has taken place
When compensation has not taken place
With consent of debtor
With knowledge, but without consent of debtor
Without knowledge of debtor
i. Debts which cannot be compensated (1286 1288)
j. Effect of compensation 91289 1290)
When compensation takes effect

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Case: Gullas vs National Bank, 62 Phil. 519

6. Novation (Articles 1291 1304)
a. Concept (1291)
Requisites
Kinds
b. Form of extinguishment (1292)
Express novation
Implied novation
c. Novation by substitution of debtor (1293)
Necessity of creditors consent
Effect of payment by new debtor
d. Effect of payment by new debtor (1294 -1295)
If substitution is by expromision
If substitution is by delegacion
e. Effect upon accessory obligations (1296)
f. Effect if new and /or old obligations are void
Rule id old obligation is voidable
g. Effect if old obligation is conditional (1299)
h. Novation by subrogation (1300)
i. Conventional subrogation (1301)
j. Legal subrogation (1302)
k. Effect of total subrogation (1303-1304)
Effect of partial subrogation
Cases: Emilio Uraca, et al., vs CA, et al., G.R. No. 115158, September 5,
1997; Reyes vs CA, et al., G.R. No. 120817, Nov. 4, 1996
III. CONTRACTS
A. General Provisions (Articles 1305 1317)
1. Concept
a. Characteristics (1305)

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b.

c.
d.

e.

f.
g.
h.
i.
j.
k.

Elements
Stages
Classification
Auto Contracts
Contracts of Adhesion
Freedom to Contract (1306)
Validity of stipulations
Limitations on stipulations
Innominate Contracts (1307)
Analogous contracts
Mutuality of Contracts (1308)
Unilateral cancellation
Express agreement
Relativity of contracts (1311)
Parties bound by contract
Third persons not bound
Enforcement of contract
Annulment of contracts
Contracts bind heirs
Stipulations for third persons
Who may revoke
Collective contracts
Real rights in property (1312)
Contracts in fraud of creditors (1313)
Interference by third persons (1314)
Extent of liability
Perfection of consensual contracts (1315)
Binding effect of contract
Perfection of real contracts (1316)
Ratification necessary (1317)
Express or implied
Effect retroactive

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Status before ratification

Liability of representative
Cases: Spa pascual vs Ramos, G.R. No. 144712, July 4, 2002; Cuizon vs
CA, 260 SCRA 645; Ferrazini vs. Gsell, 34 Phil. 697; Del Castillo vs
Richmond, 45 Phil. 697; Cui vs Arellano University, 112 Phil 135; Sy
Suan vs. Regala, 105 Phil 1024; Constantino vs Espiritu, 39 SCRA 206
2. Essential Requisites of Contracts (Articles 1318 1385)
a. General provisions (1318)
Parties to contract
Capacity of parties
Want of counsel

CONSENT
b. Concept of consent (1319)
Elements
Forms of consent
Manifestation of consent
Offer by one party (definite, complete, international, mental)
Acceptance by offeree
Amplified acceptance
Complex offers
Simultaneous offers
Successive agreements
Knowledge of offeror (Through intermediaries, by
correspondence, by telephone)
Effect of silence
Withdrawal of offer
Lapse of time
Revocation of acceptance
New contract before acceptance
Public offers

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c. Implied acceptance (1320)

Waiver of acceptance
Effect of silence
d. Right of offeror (1321)
Period for acceptance
Manner of acceptance
e. Contract through intermediary (1322)
f. Period of acceptance (1324)
Withdrawal of offer
Crossing revocation and acceptance
Effect of delay
Contract of option
g. Sales advertisements (1325)
h. Effect of bidding (1326)
Judicial sales
i. Effect of incapacity (1327)
Unemancipated minors
Estoppel
Emancipation
Insane persons
Deaf mutes
j. Lucid intervals (1328)
Liquor and drugs
Hypnotism and somnambulism
k. Other causes of incapacity (1329)
Special disqualifications
l. Requisites of consent (1330)
Defects of the will
Discretion of courts
m. Concept of error (1331)
Mistake of fact or law
As to object

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n.
o.
p.

q.

Nature of contract
Principal conditions
Accidental, accessory conditions
Effect of intent
Error as to person
Solvency of the party
Motive of the party
Error as to account
Account and quantity
Correction of account
Eror as to absis of contract
Error as to estimates
Error in unilateral decision
Liability for error
Fraud or mistake alleged (1332)
Inexcusable error (1333)
Error of law (1334)
Legal effects of contracts
Error as to the nature of contract
Violence and intimidation distinguished (1335)
Scope and test
Requisites of violence
Requisites of intimidation
Unjust act
Enforcement of claim
When improper
Serious evil or wrong
Imminence of evil
Object of evil
Nature of injury
Reasonable fear
Respect and obedience

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r.
s.

t.

u.
v.
w.
x.

y.

z.

Cause of consent
Moral coercion
Duress by third person (1336)
Undue influence (1337)
Circumstances to be considered
Employed by third persons
Contracts of adhesion
Concept of fraud (1338)
Insidious words and machinations
Kinds of fraud
Compared with error
Requisites of fraud
Effects of fraud
Proof of fraud
Concealment of fraud (1339)
Innocent non-disclosures
Tolerated fraud (1340)
Opportunity to know
Expression of opinion (1341)
Made by expert
Fraud by third person (1342)
Mutual error
Compared with violence
Magnitude of fraud (1343)
Determining cause
Fraud by one party on another
Mutual fraud
Plurality of subjects
Dolo incidente
Definition of simulation (1345)
Absolute simulation
Relative simulation

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aa. Absolute simulation (1346)

Recovery under contract
Distinguished from fraudulent alienation
Simulation presumed
Relative simulation
Effect as to third persons
Acquisition of title
Cases: ABS-CBN vs CA et al., 301 SCRA 572; Palattao vs. CA, et al., G.R. No.
131726, May 7, 2002; National Commercial Bank of Saudi Arabia vs. CA,
G.R. No. 1242467, January 17, 2005; DBP vs Perez, G.R. No. 14854, Nov.
11,. 2004; Sanchez, vs Rigos, 45 SCRA 368; Mercado and Mercado vs.
espiritu, 37 Phil. 125; Braganza vs Villa Abrille, 105 Phil 456; Songco vs
Sellner, 37 Phil. 254; Rosario, et al. v. CA, et al., G.R. No. 127005, July 19,
1999; Lee and Asiatrust Development Bank v. Bangkok Bank Public Co., G.R.
No.
173349,
February
09,
2011;
Philtranco Service Enterprises, Inc., v. Paras and Inland Railways, Inc., et
al., G.R. No. 161909, April 25, 2012; Paz v. Environmental Universality. Inc.,
G.R. No. 203993, April 20, 2015;

OBJECTS OF CONTRACTS
a. Concept of object
Requisites
Within commerce of man (1347)
Existence of object
Future inheritance
Not part of inheritance
Contrary to law or morals
Prestation of third party
b. Impossible things or services (1348)
Liability for damages
Partly impossible
Difficulty of performance

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c. Determination of kind (1349)

Determination of quantity
Case: Blas vs Santos, 111Phil. 503;
CAUSE OF CONTRACT
a. Concept
Distinguished from object
Distinguished from consideration
Distinguished from motive
Requisite of cause
Onerous contracts (1350)
Mutual promises
Accessory contracts
Accommodation parties
Remuneratory contracts
Contract taken as a whole
b. Purpose of contract (1375)
c. Usages or customs (1376)
d. Obscure terms construed (1377)
Contracts of adhesion
e. Reciprocity of interests (1378)
Least transmission of rights
f. Partly written contract (1379)
Natural right
Cases: Phil. Banking Corp. vs Lui She, 21 SCRA 52; Villaroel vs Estrada,
71 Phil. 14;
Mactal vs melegrito, 111 Phil. 363;
B. Form of Contracts
a. Intent over form (1356)
Contracts valid in any form
Formalities required by law
For validity of contract

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Execution of instrument
b. Compliance with formality (1357)
Causes of action
Survival of actions
c. Writing not for validity (1358)
Case: Dauden-Hernaez vs Delos Angeles, 27 SCRA 1276;
C. Reformation of Instruments
a. Basis of reformation (1359)
Requisites of reformation
Distinguished from annulment
Operation and effect
Effect on statutes of frauds
b. Requisites of mistake (1361)
Mistake of fact
Must be mutual
Effect of negligence
c. Mistake of one party (1362)
d. Mistake of draftsman (1363, 1364)
e. Deed held to be mortgage (1365)
f. Donations and wills (1366)
g. Void agreements (1367)
Cases: Huibonhua vs COA, 320 SCRA 625; Bentir and Formida vs Judge
Leanda and Leyte Gulf Traders, Inc., G.R. No. 128991, April 12, 2000; Rita
Sarming, et al., vs Dy, et al., G.R. No. 133643, June 6, 2002;
D. Interpretation of Contracts
a. Interpretation of terms (1370)
Intent of the parties
Proof of intention
Reformation of instruments

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b.
c.
d.
e.
f.
g.
h.

Determining intention (1371)

Scope of general terms (1372)
Validity favored (1373)
Contract taken as a whole (1374)
Purpose of contract (1375)
Usages or customs (1376)
Obscure terms construed (1377)
Contracts of adhesion
i. Reciprocity of interests (1378)
Least transmission of right
j. Partly written contract (1379)
Natural right
E. Rescissible Contracts
a. Defective contracts
Relative ineffectiveness
Concept of rescission (1380)
Nature of contract
Rescission in reciprocal obligations
Rescission and mutual dissent
Requisites of rescission
Direct proceedings to rescind
b. Rescission on legal grounds 91381)
Contracts with lesion
Contracts of guardians
Contracts for absentees
Contracts in fraud of creditors
Action pauliana and simulation
Requisites for rescission
Existence of credit
Priority of credit

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Exception
Creditors included
Fraudulent conveyance
Test of fraud
Signs of fraud
As to transferee
c. Payment when insolvent (1382)
d. No other remedy (1383)
e. Extent of rescission (1384)
Who may bring action
f. Mutual restitution (1385)
Transfer to third person
Right of transferee
Transferee in good faith
Transferee in bad faith
Right to damages
g. Fraud presumed (1387)
Rebuttal of presumption
Proof of fraud
Effect of fraud
h. Subsequent transfers (1388)
Bad faith of transferee
i. Minority of party (1389)
Cases: Rosencor development Corporation and Rene Joaquin vs Paterno
Inquing, et al., G.R. No. 140479, March 8, 2001; Khe Hong Cheng vs CA, G.R.
No. 144169, March 28, 2001; Guzman, Bocaling and Co., Inc. vs Bonnevie,
206 SCRA 668; Concepcion vs Sta Anna, 87 Phil.787; Rivera vs. Li Tam and
Co., 4 SCRA 1072;
Oria vs MacMicking, 21 Phil. 243
F. VOIDABLE CONTRACTS
a. Concept

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Rescission and annulment

Grounds for annulment
Incapacity to consent
How annulment obtained
b. Prescription of nullity (1391)
Application of period
Registered documents
c. Confirmation and ratification (1392)
Ratification and acknowledgment
Requisites of ratification
Transmission of right
d. Express ratification (1393)
Implied ratification
e. Exercise of ratification (1394)
f. Effect of ratification (1396)
Retroactivity of ratification
g. Personal requisites (1397)
Incapacitated person at fault
Representation of capacity
h. Mutual restitution (1398)
Who may invoke restitution?
Contracts not covered
Restitution of fruits and interest
Liability for damages
i. Incapacitated party (1399)
Profit by incapacitated
Restitution by capacitated party
j. Loss of thing by plaintiff (1401-1402)
Loss of thing by defendant
Loss of fruits and accessories
Cases: Bael vs IAC, 169 SCRA 617; Braganza vs Villa Abrille, 105 Phil. 456; De
Santos vs City of Manila, 45 SCRA 409; Talag vs Tankengco, 92 Phil. 1066

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G. UNENFORCEABLE CONTRACTS
a. Concept and distinctions
b. Unauthorized contracts (1403)
Statute of frauds
Purpose of statute
Validity of contracts
Action to enforce
Note or memorandum
Performance within one year
Guaranty of anothers debt
Test of guaranty
In consideration of marriage
Sale of personalty
Separable contracts
Partial delivery or payment
Lease or sale of realty
Description of property
Representation as to credit
Parties incapacitated
c. Ratification validates contracts (1404)
d. Failure to object (1405)
Acceptance of benefits
e. Defense is personal (1408)
Cases: Rosencor Development Corp. vs Inquing, 354 SCRA 119; Factoran vs
Sabanal, 81 Phil. 512; Diana vs Macalibo, 75 Phil. 71; Western Minadanao
Lumber Co., vs Medalla, 79 SCRA 702; Shoemaker vs La Tondena, 68 Phil
24;
H. VOID OR INEXISTENT CONTRACTS
a. Void or inexistent contract (1409)
Characteristics of void contracts

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Parties affected
Action on contract
Ratification
b. Defect incurable (1410)
Nature of action
c. Illegality common to parties (1411,1412)
Only one party guilty
Cases of usury
d. Recovery of usurious interest (1413)
e. Repudiation of illegal contracts (1414)
f. Divisible or separable contracts (1420)
Nature of contracts
Intention of parties
g. Nullity as defense (1421)
Cases: Liguez, vs CA, 102 Phil. 577; Mapalo vs Mapalo, 17 SCRA 114;
Rodriguez vs Rodriguez, 20 SCRA 908; Angel Jose Warehousing Co., vs
Chelda Enterprises, 23 SCRA 119; Development Bank of the Phil. Vs Perez,
G.R. No. 148541, Nov. 11, 2004; Phil. Banking Corp., vs Lui She, 21 SCRA 52
I. NATURAL OBLIGATIONS
a. Basis of natural obligations
b. Types of obligations (1423)
Concept of natural obligations
Natural and imperfect
Natural and moral
Fulfillment of natural obligations
Voluntary fulfillment
Conversion to civil obligation
Guaranty of natural obligations
Illicit obligations
c. Restitution by minor (1426)
Payment by minor

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Good faith of the creditor

Nature of thing
Non-consummable thing
d. Nullity due to form (1430)
J. ESTOPPEL
a. Principle of estoppels (1431)
Concept of estoppels
Illegal act excluded
Distinguished from waiver
Distinguished from ratification
Representations and positive acts
Admissions
Silence or inaction
Nature of laches
Laches and prescription distinguished
Reliance and belief
b. Effect of provision (1432)
c. Kinds of estoppels (1433)
Elements of estoppels in pais
d. Subsequent acquisition of title (1434)
e. Estoppels of tenant (1435, 1436)
f. Estoppels against owner (1437)
g. Estoppels from benefits (1438)
h. Parties affected (1439)
No estoppel against government
Cases: Maneclang vs Buan, 208 SCRA 179; Heirs of Lacamen vs Heirs of
Laruan, 65 SCRA 605; Nielson & Co., Inc., vs lepanto Consolidated Mining
Co., 18 SCRA 1040; pnb VS Barreto, 52 Phil 818
K. TRUSTS
a. Characteristics of trusts

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Distinguished from other relations

b. Mayorazgo as trust (1440)
Nature of trustees liability
Trust property
Existence of cestui que trust
c. Classification of trusts (1441)
Resulting and constructive
d. General law of trust
EXPRESS TRUST
a. Proof of express trust (1443)
b. No particular form required (1444)
c. Want of trustee (1445)
IMPLIED TRUST
a. Trust from payment (1447, 1448)
Exceptions to rule
b. Inheritance in trust (1449-1451)
c. Title in one co-owner (1452)
d. Trust based on promise (1453)
e. Investment of trust funds (1454-1545)
Acquisition of trust property
f. Mutual mistake (1456)
Unilateral mistake
Cases: Cuaycong vs Cuaycong, 21 SCRA 1192; Fabian vs Fabian, 21 SCRA
213; Sotto vs Teves, 86 SCRA 154; Alarcon vs Bidin, 120 SCRA 390; CaragayLagno vs CA, 133 SCRA 718; Tongoy vs CA, 123 SCRA 99; Bueno vs Reyes, 27
SCRA 1179;
References: Obligations and Contracts by Jurado, Tolentino, Agpalo
Prepared by Judge CYNTHIA MARTINEZ FLORENDO