ART.

1372-1377

- A C E V E D O , J AY
 Art.1372

 However general the terms of a contract may be, they

shall not be understood to comprehend things that are
distinct and cases that are different from those upon
which the parties intended to agree. (1283)
Explanation

 An obligation arises from a contract or from any act

or fact to which the effects of an obligation are
attached by law.
 An obligation may be pure and simple or subject to
modalities.
Modalities something that exist.
Example

 Ralph is the owner of a Pharmacy. He gives Carl a power of

attorney which reads as follows: “I hereby appoint Carl the
manager of my Pharmacy in which he has the license to
operate the store its because he is already A Pharmacist, with
full power to do any and all acts that he may deem necessary
and proper in the premises.” Under this authority, may Carl
receive a portion of the sell per day or profit of the store?
No, even if the power appears very broad, he cannot receive
due to he was only an employee under by Ralph and Ralph
just use the license of Carl to run the Business so that Carl can
supervise and manage the store only and cannot receive sell
nor the profit.
 Art.1373

 If some stipulation of any contract should admit of

several meanings, it shall be understood as bearing
that import which is most adequate to render it
effectual. (1284)
Explanation

 The object of an obligation is the prestation that the debtor

is bound to render to the creditor and which consists in
doing or not doing something.
 The debtor is bound to render a prestation that is possible
and determinate or determinable and that is neither
forbidden by law nor contrary to public order.
Example

 A provision in an employment contract which prohibited

an employee for two years from calling on any customer
of the employer called on by the employee during the last
six months of employment would generally be valid.
 Art.1374

 The various stipulations of a contract shall be

interpreted together, attributing to the doubtful ones
that sense which may result from all of them taken
jointly. (1285)
Explanation

 Provision of a contract are given reasonable and practical

interpretation so as to be ieffectious, title given to section
of a contract may not be resorted to in interpreting the
scope. An interpretation that gives effect to the contract as
a whole should be adopted.
 Art.1375

 Words which may have different significations shall be

understood in that which is most inkeeping with the
nature and object of the contract. (1286)
Explanation

 The parties shall conduct themselves in good faith both at

the time the obligation arises and at the time it is
performed or extinguished.
 Art.1376

 The usage or custom of the place shall be borne in

mind in the interpretation of the ambiguities of a
contract, and shall fill yhe omission of stipulations
which are ordinarily established.
Explanation

 The usage or customs of the place where the contract was

entered into may e receive to explain what is doubtful or
ambiguous in a contract on the theory that the parties
entered into their contract with reference to such usage or
custom.
Example

 Blaze contracted Jay to build a house and shall be paid on

a daily basis until finished.
 In the above example there are no rate of payment in
the stipulation, suppose that the agreement took
place in the province, then the prevailing rate of the
province are to be observed, but if it took place in
Davao, the prevailing rate of Davao is to be observed.
 Art.1377

 The interpretation of obscure words or stipulations in

a contract shall not favor the party who caused the
obscurity. (1288)
Explanation

 The party who drafted the contract, more easily than

the other, could have prevented mistakes or
ambiguity(doubtfulness) in meaning by careful
choice of words or by the exercise of a little more
care; and generally, the party who causes the
obscurity acts with ulterior motives.