TRADITIO LONGA MANU = delivery with long hand= A species of delivery which

takes place where the transferor places the article in the hands of the transferee, or,
on his order, delivers it at his house (EXAMPLE: i give to you the umbrella that you
bought from me)
TRADITIO BREVI MANU = Delivery with short hand. A species of constructive or
implied delivery. When he who already holds possession of a thing in another's
name agrees with that other that thenceforth he shall possess it in his own name, in
this case a delivery and redelivery are not necessary.(EXAMPLE: you are renting a
house & lot, thereafter you bought that same house you are renting. There is no
need to deliver it to you coz you already hold the house and lot, although in the
capacity of an "owner" now and no longer a "lessee".)
TRADITIO CONSTITUTUM POSSESSORIUM = Continues possession. Here the
seller, after the sale, retains possession of the article acting as agent on behalf of
the buyer. (EXAMPLE: you buy from me a night gown for you to use in your
Christmas party. you don't take the gown with you, you still leave it with me and I
continue to have possession of the gown so that I can alter or change the
measurement of the gown to fit your vital statistics.)
Obligation
a juridical necessity to give, to do, or not to do.A juridical relation whereby a
person (creditor) mat demand from another (debtor) the observance of
a determinate conduct, and in case of breach mayobtain satisfying from the assets
of the latter.
Quasi-contracts
- Those juridical relations arising from lawful, voluntary and unilateral acts, by virtue
of which the parties become bound to each othe rbased on the principle that no one
shall be unjustly enriched or benefited atthe expense of another.
Negotiorum gestio
arises whenever a person voluntarily takes charge of the agency or management
of the business or property of another without any power or authority from
the latter.
Solutio Indebiti
arise when a person unduly delivers a thing through mistake to another who has
no right to demand it.
Quasi delicts
An act or omission by a person (tortfeasor) which causes damage to another
giving rise to an obligation to pay for the damage done, there being fault or
negligence but there is no pre-existing contractual relation between the parties (art
2176)

Chapter 2: NATURE AND EFFECT OF OBLIGATIONS ART. 1163. Every person

obliged to give something is also obliged to take care of it with the proper diligence
of a good father of a family, unless the law or the stipulation of the parties requires
another standard of care. (1904a) ART. 1664. The creditor has a right to the fruits
of the thing from the time the obligation to deliver it arises. However, he shall
acquire no real right over it until the same has been delivered to him. (1905) ART.
1165. When what is to be delivered is a determinate thing, the creditor, in addition
to the right granted him by article 1170, may compel the debtor to make the
delivery.
20. If the thing is indeterminate or generic, he may ask that the obligation be
complied with at the expense of the debtor. If the obligor delays, or has promised
to deliver the same thing to two or more persons who do not have the same
interest, he shall be responsible for any fortuitous event until he has effected the
deliver. (1906) ART. 1166. The obligation to give a determinate thing includes
that of delivering all its accessions and accessories, even though they may not have
been mentioned. (1097a)
21. Obligations of the Debtor To Give a determinate thing-1. To preserve or take care
of the thing with the proper diligence of a good father of a family. It means the
ordinary diligence that a prudent man would exercise in taking care of his own
property taking into consideration the nature of the obligation, of the time and of
the place, like a person who is obliged to deliver a determinate horse to another
should, pending its delivery, preserve it by taking care of the same as if the horse is
his own.
22. 2. Accessions and accessories. Accession is the right pertaining to the
owner of a thing over its products and whatever is attached thereto either naturally
or artificially. Example- Accretion which refers to the gradual and addition of
sediment to the shore by action of water. Accessories are those things which
are joined attached to the principal object as ornament or to render it perfect.
Example- Radio attached to a car; or key to a car.
23. 3. To be liable for damages in case of breach of obligation (Art. 1170, NCC)
When creditor acquire a right to the thing to be delivered and its fruits- The creditor
has a right to the fruits of the thing from the time the obligation to deliver it arises.
However, he shall acquire no real right over it until the same have been delivered to
him. (Art. 1164, NCC) Example a binds himself to sell his horse to B for fro P10,
000. No date nor condition is stipulated for delivery of the horse. Later, the horse
gave birth to a colt. A has right to the colt, if B has not paid the horse. Before
delivery, B does not acquire ownership over it.
24. Definition of terms:1. Determinate thing a thing is determinate when it is
particularly designated or physically segregated from all others from the same
class. (Art. 1460, NCC)2. Indeterminate or generic thing A thing is generic when it
refers to a class or thing or genus and cannot be designated with particularity. (Art.
1460, NCC)3. Fortuitous Events those events which could not be foreseen or which
though foreseen were inevitable. (Art. 1174, NCC)

25. Art. 1167. If a person obliged to do something fails to do it, the same shall be
executed at his cost. This same rule shall be observed if he does it in
contravention of the tenor of the obligation. Furthermore, it may be decreed that
what has been poorly done be undone. ( 1098 )
26. Obligation of the debtor To Do Being a personal positive obligation, The creditor
hasthe right to secure the services of third person to performthe obligation at the
expense of the debtor under thefollowing instances: When the debtor fails to do
the obligation; When the debtor performs the obligation but contrary to the tenor;
or When the obligor poorly performs the obligation.
27. ART. 1168. When the obligation consists in not doing, and the obligor does
has been forbidden him, it shall also be undone at his expense, (1099a) Obligation
of the Debtor NOT To Do This is negative personal obligation which is consisting of
an obligation, of not doing something. If the debtor does what has been forbidden
him to do, the obligee can ask the debtor to have it undone. If it is impossible to
undo what was done, the remedy of the injured party is for an action of damages.
Example- A bought a land from B. It was stipulated that A would not construct a
fence in a certain portion of his land adjoining that land sold by B. Should A
construct a fence in violation of the agreement, B. can bring an action to have the
fence remove at the expense of A.
28. ART. 1169. Those oblige to deliver or to do something incur in delay from the
time the obligee judicially or extra - judicially demands from theme the fulfillment of
their obligation. However, the demand by the creditor shall not be necessary in
order that delay may exist: ( 1 ) When the obligation or the law expressly declares;
or ( 2 ) When from the nature and the circumstances of the obligation it appears
that the destination of the time when the thing is to be delivered or the service is to
rendered was controlling motive for the establishment of the contract; or ( 3 ) When
demand would be useless, as when the obligor has rendered it beyond his power to
perform. In reciprocal obligations, neither party incurs in delay if the other does not
comply in a proper manner with what is incumbent upon him. From the moment one
of the parties fulfills his obligation, delay by the other begins. ( 1100a )
29. Delay ( Mora ) means a legal delay or default and it consists of failure discharge
a duty resulting to ones own disadvantaged. The debtor incurred delay if: The
debtor fails to perform his obligation when it falls due; and A demand has been
made by the creditor judicially or extra judicially. Example Gaya obliged herself to
deliver a determinate horse to Tito on June 20. this year. Gaya failed to delivered on
the agreed date, Is Gaya already on delay on June 20, only when Tito makes a
judicial or extra-judicial demand and from such date of demand when Gaya is on
default or delay.
30. However, there are instances when the demand by the Creditor is not
necessary to place the debtor on delay: 1. When the obligation expressly so
provides The mere fixing of the period is not sufficient to constitute a delay. An
agreement to the effect that fulfillment or performance is not made when the
obligation becomes due, default or delay by the debtor will automatically arise.

31. 2. When the law so provides The express provision of law that a debtor is in
default. For instance, taxes must be paid on the date prescribed by law, and
demand is not necessary in order that the taxpayer is liable for penalties.3. When
time is of the essence Because time is the essential factor in the fulfillment of the
obligation. Example, Gaya binds herself to sew the wedding gown of Maya to be
used by the latter on her wedding date. Gaya did not deliver the wedding gown on
the date agreed upon. Even without demand, Gaya will be in delay because time of
the essence.
32. 4. When demand would be useless When the debtor cannot comply his
obligation as when it is beyond his power to perform. Like when the object of the
obligation is lost or destroyed through the fault of the debtor, demand is not
necessary.5. In a reciprocal obligation, from the moment one of the parties fulfills
his obligation, delay to the other begins For instance, in a contract of sale, if the
seller delivers the object to the buyer and the buyer does not pay, then delay by the
buyer begins and vice versa, if the buyer pays and the seller did not deliver the
object, then the seller is on delay.
33. Kinds of delay Mora solvendi delay on the part of the debtor. Mora
accipiendi delay on the part of the creditor, like when the creditor unjustifiably
refused to accept payment at the time it was due, is in delay. Compensatio morae
delay both parties in a reciprocal obligation.
34. ART. 1170. Those who in the performance of theirobligations are guilty of fraud,
negligence, or delay,and those whoin any manner contravene the tenorthereof, are
liable for damages. (1101) ART. 1171. Responsibility arising from fraud
isdemandable in all obligations. Any waiver of an actionfor future fraud is void.
(1120a) ART. 1172. Responsibility arising fromnegligence in the performance of
every king ofobligation is also demandable, but such liability maybe regulated by
the courts, according to thecircumstances. (1130)
35. ART. 1173. The fault or negligence of the obligorconsists in the omission of that
diligence which isrequired by the nature of the obligation andcorresponds with the
circumstances of the persons,of the time and of the place. When negligence
showsbad faith, the provisions of articles 1171 and 2201,paragraph 2, shall apply. If
the law or contract does not state the diligenceof which is to be observed in the
performance, thatwhich is expected of a good father of a family shall berequired.
(1104a)
36. Sources of liability for damages:1. Fraud (dolo) is the intentional deception
made by one person resulting in the injury of another. The fraud referred to is
incidental fraud, that is, fraud incident to the performance of a pre-existing
obligation.2. Negligence (culpa) consists in the omission by the obligor of that
diligence which is required by the nature of the obligation and corresponds with the
circumstances of the person, of the time and of the place. (Art. 1173, NCC)
37. 3. Delay (Mora) like when there has been judicial or extra-judicial demand and
the debtor does not comply his obligation, delay will occur.4. In contravention of the
tenor of the obligation refers to the violation of the terms and conditions or

defects in the performance of the obligation, like when a landlord fails to maintain a
legal and peaceful possession of a tenant being leased by the latter because the
landlord was not the owner and the real owner wants to occupy the land, there is
contravention of the tenor of the obligation.
38. Other sources of liability for damages Loss of the thing with the fault of
debtor. Deterioration with the fault of debtor. (Art. 1189)
39. Kinds of Damages1. Moral damages include physical sufferings, mental
anguish, fright, serious anxiety, besmirched reputation, wounded feeling, moral
shock, social humiliation and similar injury.2. Exemplary damages imposed by way
of example or correction for the public good. Like in quasi-delicts, if the
defendant acted with gross negligence. (Art. 2231, NCC)
40. 3. Nominal damages are adjudicated in order that a right of the plaintiff, which
has been violated by the defendant, may be vindicated or recognized and not for
the purpose of indemnifying the plaintiff for any loss suffered by him. (Art. 2221,
NCC)4. Temperate or moderate damages are more than nominal but less than
compensatory damages may be recovered when the courts finds that its amount
cannot, from the nature of the case, be proved with certainty. Pecuniary loss means
loss of MONEY, or of something by which money or something of money value may
be acquired. (Black Law Dict. P. 1131)
41. 5. Actual or compensatory damages except as provided by law, or a
stipulation, one is entitled to an adequate compensation only for such pecuniary
loss suffered by him as he has duly proved. (Art. 2199, NCC) Damages may be
recovered: For loss or impairment of earning capacity in cases of temporary or
permanent personal injury; For injury, to the plaintiffs business standing or
commercial credit.
42. Liquidated damages are those agreed upon by parties to a contract to be
paid in case of breach thereof. (Art. 2226, NCC)
43. ART. 1174. Except in cases expressly specified by the law, or when it is
otherwise declared by stipulation, or when the nature of the obligation requires the
assumption of risk, no person shall be responsible for those events which could not
be foreseen, or which, though foreseen, were inevitable (1105a)
44. Fortuitous even is an event which cannot be foreseen which though
foreseen is inevitable. Fortuitous event proper are acts of God such as volcanic
eruption, earthquake, lightning, etc. is now similar with force majuere or acts of
man such as conflagration, war, robbery, etc.1. Requisite necessary to constitute
fortuitous event The failure of the debtor to comply with the obligation must be
independent from the human will; The occurrence makes it impossible for the
debtor to fulfill the obligation on a normal manner, and the obligor did not take part
as to aggravate the injury of the creditor. (Vasquez v.C.A. G.R. 42926)
45. 2. As a general rule, no person shall be held responsible for fortuitous events
Example Gaya obliged herself to deliver a determine car to Tito on Dec. 30, 1998.
Before the arrival of the period, the car was struck by lightning and was totally

destroyed. Gaya cannot be held responsible for the destruction of the car, hence her
obligation to deliver is extinguished.
46. Exceptions (when the person is responsible despite the fortuitous even).a.
When the law expressly so provides, such as: The debtor is guilty of fraud,
negligence or in contravention of the tenor of the obligation. (Art, 1170, NCC) The
debtor has proved to deliver the same thing to two or more persons who do not
have the same interest. ( Art. 1165,NCC ) The thing to delivered is generic. The
debtor is guilty of default or delay. ( Art. 1169,NCC ) The debtor is guilty of
concurrent negligence.b. When declared by stipulation;c. When the nature of
obligation requires the assumption of risk. An example of this is a contract of
insurance.
47. ART. 1175. Usurious transaction shall be governed by special laws. Note:
C.B. Circular No. 905 suspends the ceilings in the usury law. Hence, parties can
agree as to the rate of interest. Kinds of interest 1. Conventional *The rate which
is agreed upon by the parties. 2. Legal Interest *The rate which is prescribed by law.
3. Lawful Interest *The rate which is agreed upon by the parties but which rate is
within the rate authorized by law. 4. Usurious Interest *The rate which is in excess of
the maximum rate of interest allowed by law.
48. ART. 1176.The receipt of the principal by the creditorwithout reservation with
respect to the interest, shallgive rise to the presumption that said interest hasbeen
paid. The receipt of a later installment of a debtwithout reservation as to prior
installments, shalllikewise raise the presumption that such installmentshave been
paid. (1110a) Presumption means the inference as to theexistence of a certain fact
which if not contradicted isconsidered as true.
49. The presumption in the above article is a disputable presumption, whereby one
which can be contradicted by presenting proof to the contrary while a conclusive
presumption does not admit any evidence or proof, hence, it is considered as a
fact. Presumption under this article: 1. Receipt of the principal, without
reservation as to the interest, shall give rise to the presumption that the said
interest has been paid. 2. When the creditor issues a receipt of a later installment of
a debt without reservation as to prior installment is presumed to have been paid.
50. ART. 1177. The creditors, after having pursued the property in possession of
the debtor to satisfy their claims, may exercise all the rights and bring all the
actions of the latter for the same purpose, save those which are inherent in his
person; they may also impugn the acts which the debtor may have done to defraud
them. (1111) Rights of Creditors In order to satisfy their claims against the
debtor, creditors have the following successive rights:1. to levy by attachment and
execution upon all the property of the debtor, except such as are exempt by law
from execution;2. to exercise all the rights and actions of the debtor, except, such
as are inherently personal to him; and3. to ask for the rescission of the contracts
made by the debtor in fraud of their rights.
51. ART. 1178. Subject to the laws, all rights acquired in virtue of an obligation
are transmissible, if there has been no stipulation to the contrary. (1112) As a

rule, all rights acquired in virtue of an obligation are transmissible, except in the
following cases: 1. When the law so provides. 2. When the parties stipulate
otherwise by agreement of parties that the rights acquired by them will not be
transmitted to any other person. 3. When the obligation is purely personal in nature.
52. General Provisions on ContractsART. 1305. A contract is a meeting of
mindsbetween two persons whereby one binds himself,with respect to the other, to
give something or torender service. (1254a) The above article defines the term
Contract. In a contract, one or more persons bind themselves with respect to
another or reciprocally, to the fulfillment of a presentation to give, to do or not to
do.
53. Elements of Contract 1. Essential elements those elements without which
there can be no valid contract. This element are consent, object or subject matter
and cause or consideration 2. Natural elements those elements which are found
in a contract by its nature and presumed by law to exist, such as Warranty of
hidden defects or eviction in contract of sale. 3. Accidental elements - those which
exist by virtue of an agreement for the purpose of expanding, limiting, or modifying
a contract. Such accidental elements are condition, clauses, terms, modes of
payment, or penalties.
54. Stages of A Contract 1. Preparatory or conception process of formation such
as bargaining, negotiation to arrive at a define contract. 2. Perfection or birth
there is now a meeting of minds to arrive at a definite agreement as to the subject
matter, cause or consideration, terms and conditions of contract. 3. Consumption
or death which is the fulfillment or performance of the terms and conditions
agreed upon in the contract may be said to have been fully accomplished or
executed.
55. Characteristics of Contracts 1. Freedom to contract they may establish terms
and conditions as they may deem convenient. 2. Relativity it is binding only
upon the parties and their successors. 3. Obligatory force it constitutes the law
as between the parties. 4. Mutuality its validity and performance cannot be left
to the will of only one of the parties.
56. Classification of A Contract: (FORM) 1. As to perfection a. Consensual one
which is perfected by mere consent (Art. 1315 b. Real Contract perfected by mere
consent and by the delivery of the object or subject matter. Ex. Deposit, pledge, or
commodatum. 2. As to dependence to other contract. a. Principal one which can
stand alone. Ex. A contract of sale, lease. b. Accessory those which are dependent
upon another contract. Ex. Contract of mortgage, pledge of guaranty. c. Preparatory
those which is created in order that a future transaction or contract may be
entered into by te parties. Ex. Contract of partnership or agency.
57. 3. According to name or designation a. Nominate one which has particular
name or designation such as sale, agency, etc. b. Innominate those without
particular name. 4. According to the nature of obligation a. Unilateral where only
one ha an obligation to perform. Ex. Contract of donation, commodation. b. Bilateral
where both parties have reciprocal obligation to perform. Ex. Sale. 5. According

to risk involved a. Commutative - where there is an exchange of values, such as

lease. b. Aleatory - one which the fulfillment of the obligation depends upon chance.
Ex. Contract of insurance.
58. 6. According to cause a. Onerous one which imposes valuable consideration
such as sale, mortgage. b. Gratuitous one which one of the parties does not
receive any valuable consideration, such as commodatum.7. According to form a.
Oral by word of mouth of the parties b. Written the agreement which is reduced
in writing which may be public or private or private document
59. ART. 1306. The contracting parties may establish suchstipulations, clauses,
terms and conditions as they maydeem convenient, provided they are not contrary
to law,morals, good customs, public order, or public policy.(1255a)Art. 1307
Innominate contracts shall be regulated bythe stipulations of the parties, by the
provisions ofContracts, by the rules governing the mostanalogous nominate
contracts, and by the customsof the place.
60. Contract Binds by Both Parties ART. 1308. The contract must bind
bothcontracting parties; its validity or compliance cannotbe left to the will of one of
them. (1256a)
61. Contracts entered by and between the parties mushbind both parties in order
that it can be enforced againsteach other. This is also known as mutuality of
contract.Hence, its validity or compliance cannot be left to the will ofone of them.
This principle is based on the essentialequality of the parties. It is elementary rule
that no partycan renounce or violate the law of the contract without theconsent of
the other. (11 Manresa 380) Example, Gaya and Laura entered into a contract tosell
whereby Gaya binds herself to sell her only parcel ofland to Laura if Gaya decides to
leave for States. Thecontract is void because the fulfillment of the conditiondepends
on the will of Gaya.
62. ART. 1309. The determination of the performance may be left to a third
person, whose decision shall not be binding until it has been made known to both
contracting parties. ART. 1310. The determination shall not be obligatory if it is
evidently inequitable. In such case, the courts shall decide what is equitable under
the circumstances.
63. Determination of Performanceby Third Person As a rule, compliance with a
contract cannot be left to thewill of one of the contracting parties. However,
thedetermination of its performance may be left to a third personafter it has been
made known to both contracting parties.Provided, further, the parties are not bound
by thedetermination if it is evidently inequitable or unjust when thethird person
acted in bad faith or by mistake, the courts shalldecide what is equitable under the
circumstances. Example, Gaya sold her parcel of land to Laura. It wasagreed that
Maya, a real estate appraiser would be the one todetermine the reasonable price of
the land. Maya, then, fixedthe price after considering the factors affecting the value
of theland, and informing both contracting party that the decision isjust and
suitable. If the decision made by Maya is manifestlyinequitable, the court may be
called upon to decide what isequitable

64. ART. 1311. Contracts take effect only between theparties, their assigns and
heirs, except in case wherethe rights and obligations arising from the contract
arenot transmissible by their nature, or by stipulation, orby provision of law. The
heir is not liable beyond thevalue of the property he perceived from the decedent.
If a contact should contain some stipulation infavor of third person, he may demand
its fulfillmentprovided he communicated his acceptance to theobligor before its
revocation. A mere incidentalbenefit or interest of a person is not sufficient.
Thecontracting parties must have clearly and deliberatelyconferred a favor upon a
third person. (1257a)
65. Art. 1312 In contracts creating real rights, third persons who come into
possession of the object of the contract are bound thereby, subject to the provisions
of the Mortgage Law and the Land Registration Laws. Art. 1313 Creditors are
protected in cases of contracts intended to defraud them. Art. 1314 Any third
person who induces another to violate his contract shall be liable for damages to
the other contracting party.
66. Cases Where Third person MayBe Affected By a Contract 1. In determining the
performance of both parties (Art. 1309). 2. In contracts containing a stipulation in
favor of a third person (Art.1311). 3. In contracts creating real rights (Art. 1312).
4. In contracts entered into to defraud creditor (Art. 1313). 5. In contracts which
have been violated at the inducement of the thirdperson (Art. 314). Example,
Gaya mortgaged her parcel of land in favor of Laura ascollateral for her debt. The
mortgage is duly registered. Later on, Gaya soldthe same land to Tito. In this case,
Tito bought the land subject to themortgage constituted thereon. Tito, although a
stranger in the mortgage,being a real right follows the property on the right of Laura
to the mortgage
67. Art. 1317 No one may contract in the name of another without being
authorized by the latter, or unless he has by law a right to represent him. A
contract entered into in the name of another by one who has no authority or legal
representation, or who has acted beyond his powers , shall be unenforceable, unless
it is ratified, expressly or impliedly, by the person on whose behalf it has been
executed, before it is revoked by the other contracting party. (1259a)
68. Chapter 2: Essential Requisites ofContractsGeneral ProvisionsArt. 1318 There is
no contract unless the followingrequisites occur:1. Consent of the contracting
parties;2. Object certain which is the subject matter of the contract;3. Cause of the
obligation which is established. (1261)
69. Section 1. ConsentArt. 1319 Consent is manifested by the meeting of theoffer
and the acceptance upon the thing and the causewhich are to constitute the
contract. The offer must becertain and the acceptance absolute. A
qualifiedacceptance constitutes a counter-offer.Acceptance made by letter or
telegram does not bind theofferer except from the time it came to his
knowledge.The contract in such a case, is presumed to have beenentered into the
place where the offer was made. (1262a)

70. Art. 1320 An acceptance may be express or implied.Art. 1321 The person
making the offer may fix the time,place, and manner of acceptance, all of which
must becomplied with.Art. 1322 An offer made through an agent is acceptedfrom
the time acceptance is communicated to him.
71. Art. 1323 An offer becomes ineffective upon the death,civil interdiction, insanity,
or insolvency of either partybefore acceptance is conveyed.Art. 1324 When the
offerer has allowed the offeree acertain period to accept, the offer may be
withdrawn atany time before acceptance by communicating suchwithdrawal, except
when the option is rounded upon aconsideration, as something paid or promised.
72. Art.1325. Unless it appears otherwise, businessadvertisements of things for sale
are not definite offers,but mere invitations to make an offer.Art. 1326.
Advertisement for bidders are simplyinvitations to make proposals, and the
advertiser is notbound to accept the highest or lowest bidder, unless thecontrary
appears.
73. Art. 1327 The following cannot give consent to a contract:1.) Unemancipated
minors;2.) Insane or demented persons, and deaf-mutes who donot know how to
write. (1263a)Art. 1328 Contracts entered into during a lucid intervalare valid,
contracts agreed to in a state of drunkenness orduring a hypnotic spell are voidable.
74. Art. 1329 The incapacity declared in article 1327 is subjectto the modifications
determined by law, and
isunderstood to be without prejudice to
specialdisqualifications established in the laws.Art. 1330 A contract where consent
is given throughmistake, violence, intimidation, undue influence orfraud is voidable.
75. Art. 1331 In order that mistake may invalidate consent, itshould refer to the
substance of the thing which is theobject of the contract, or to those conditions
which haveprincipally moved one or both parties to enter into thecontract.Mistake
as to the identity or qualifications of one of theparties will vitiate consent only when
such identity orqualifications have been the principal cause of contract.A simple
mistake of account shall give rise to itscorrection. (1226a)
76. Art. 1332 When one of the parties is unable to read, or if thecontract is in a
language not understood by him, and mistakeor fraud is alleged, the person
enforcing the contract mustshow that the terms thereof have been fully explained
to theformer.Art. 1333 There is no mistake if the party alleging it know thedoubt,
contingency, or risk affecting the object of thecontract.Art. 1334. Mutual error as to
the legal effect of an agreementwhen the real purpose of the parties is frustrated
may vitiateconsent.

77. Art. 1335. There is violence when in order to wrest consent,serious or irresistible
force is EMPLOYED. There is intimidation when one of the contracting parties is
compelled by a reasonable and well-grounded fear of an imminent and grave peril
upon his person or property, or upon the person or property of his spouse,
descendants or ascendants, to give his consent. To determine the degree of the
intimidation, the age, sex and condition of the person shall be borne in mind. A

threat to enforce ones claim through competent authority, if the claim is just or
legal, does not vitiate consent. (1267a)
78. Art. 1336. Violence or intimidation shall annul theobligation, although it may
have been EMPLOYED by thirdPerson who did not take part in the contract.
(1268)Art. 1337. There is undue influence when a person takesimproper advantage
of his power over the will ofanother, depriving the latter of a reasonable freedom
ofchoice. The following circumstances shall be considered:the confidential, family,
spiritual, and other relationsbetween the parties, or the fact that the person
allegedto have been unduly influenced was suffering frommental weakness, or was
ignorant or in financialdistress.
79. Art. 1338. There is fraud when, through insidious wordsor machinations of one
of the contracting parties, theother is induced to enter into contract which,
withoutthem, he would not have agreed to. (1269)Art. 1339. Failure to disclose
facts, when there is a duty toreveal them, as when the parties are bound
byconfidential relations, constitutes fraud.Art. 1340. The usual exaggerations in
trade, when theother party had an opportunity to know the facts, are notin
themselves fraudulent.
80. Art. 1341. A mere expression of an opinion does notsignify fraud, unless made
by an expert and the otherparty has relied on the formers special knowledge.Art.
1342. Misrepresentation by a third person does notvitiate consent, unless such
misrepresentation hascreated substantial mistake and the same is mutualArt. 1343.
Misrepresentation made in good faith is notfraudulent but may constitute error.
81. Art. 1344. In order that fraud may make a contractvoidable, it should be serious
and should not have beenemployed by both contracting parties. Incidental fraud
only obliges the person EMPLOYING it to pay damages.Art. 1335. Simulation of a
contract may be absolute orrelative. The former takes place when the parties do
notintend to be bound at all; the latter, when the partiesconceal their true
agreement.
82. Art. 1346. An absolutely simulated or fictitious contractis void. A relative
simulation, when it does not prejudicea third person and is not intended for any
purposecontrary to law, morals, good customs, public order orpublic policy binds
the parties to their real agreement.
83. Section 2. Object of Contracts1347. All things which are not outside the
commerce ofmen, including future things, may be the object of acontract. All rights
which are not intransmissible mayalso be the object of contracts. No contract may
be entered into upon future inheritance except in cases expressly authorized by
law. All services which are not contrary to law, morals, good customs, public order
or public policy may likewise be the object of a contract. (1271a)
84. Art. 1348. Impossible things or services cannot be theobject of contracts.
(1272)Art. 1349. The object of every contract must bedeterminate so as to its kind.
The fact that the quantityis not determinate shall not be an obstacle to theexistence

of a contract, provided it is possible todetermine the same, without the need of a

new contractbetween the parties. (1273)
85. Section 3. Cause of ContractsArt. 1350. In onerous contracts the cause is
understoodto be, for each contracting party, the prestation orpromise of a thing or
service by the other; inremuneratory ones, the service or benefit which
isremunerated; and in contrast of pure beneficence, themere liberality of the
benefactor. (1274)Art. 1351. The particular motives of the parties inentering into a
contract are different from the causethereof.
86. Art. 1352. Contracts without cause, or with unlawfulcause, produce no effect
whatever. The cause is unlawfulif is contrary to law, morals, good customs, public
orderor public policy. (1275a)Art. 1353. The statement of a false cause in contracts
shallrender them void, if it should not be proved that theywere rounded upon
another cause which is true andlawful.
87. Art. 1354. Although the cause is not stated in thecontract, it is presumed that it
exist and is lawful, unlessthe debtor proves the contrary. (1277)Art. 1355. Except in
cases specified by law, lesion orinadequacy of cause shall not invalidate a
contract,unless there has been fraud, mistake or undue influence.
88. Innocence of the law excuses no one