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Title. I OBLIGATIONS CHAPTER 1 - GENERAL PROVISIONS Art. 1156. An obligation is a juridical necessity to give, to do or not to do. (n) Art. 1157. Obligations arise from: (1) Law; (2) Contracts; (3) Quasi-contracts;Lawcenter.ph (4) Acts or omissions punished by law; and (5) Quasi-delicts. (1089a) Art. 1158. Obligations derived from law are not presumed. Only those expressly determined in this Code or in special laws are demandable, and shall be regulated by the precepts of the law which establishes them; and as to what has not been foreseen, by the provisions of this Book. (1090) Art. 1159. Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith. (1091a) Art. 1160. Obligations derived from quasi-contracts shall be subject to the provisions of Chapter 1, Title XVII, of this Book. (n) Art. 1161. Civil obligations arising from criminal offenses shall be governed by the penal laws, subject to the provisions of Article 2177, and of the pertinent provisions of Chapter 2, Preliminary Title, on Human Relations, and of Title XVIII of this Book, regulating damages. (1092a) Art. 1162. Obligations derived from quasi-delicts shall be governed by the provisions of Chapter 2, Title XVII of this Book, and by special laws. (1093a) 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. (1094a) Art. 1164. 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. (1095)

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Title. IOBLIGATIONS CHAPTER 1 - GENERAL PROVISIONS Art. 1156. An obligation is a juridical necessity to give, to do or not to do. n!Art. 115". #bligations arise $ro%&1! 'a()*! Contracts)+! ,uasi-contracts)Lawcenter.ph-! Acts or o%issions .unis/ed by la() and5! ,uasi-delicts. 1012a!Art. 1151. #bligations derived $ro% la( are not .resu%ed. #nly t/ose e3.ressly deter%ined in t/is Code or in s.ecial la(s are de%andable, and s/all be regulated by t/e .rece.ts o$ t/e la( (/ic/ establis/es t/e%) and as to (/at /as not been $oreseen, by t/e .rovisions o$ t/is 4oo5. 1020!Art. 1152. #bligations arising $ro% contracts /ave t/e $orce o$ la( bet(een t/e contracting .arties and s/ould be co%.lied (it/ in good $ait/. 1021a!Art. 1160. #bligations derived $ro% 6uasi-contracts s/all be subject to t/e .rovisions o$ C/a.ter 1, Title 7899, o$ t/is 4oo5. n!Art. 1161. Civil obligations arising $ro% cri%inal o$$enses s/all be governed by t/e .enal la(s, subject to t/e .rovisions o$ Article *1"", and o$ t/e .ertinent .rovisions o$ C/a.ter *, Preli%inary Title, on Hu%an Relations, and o$ Title 78999 o$ t/is 4oo5, regulating da%ages. 102*a!Art. 116*. #bligations derived $ro% 6uasi-delicts s/all be governed by t/e .rovisions o$ C/a.ter *, Title 7899 o$ t/is 4oo5, and by s.ecial la(s. 102+a! CHAPTER * - NATURE AND EFFECT OF OBLIGATIONS Art. 116+. Every .erson obliged to give so%et/ing is also obliged to ta5e care o$ it (it/ t/e .ro.er diligence o$ a good $at/er o$ a $a%ily, unless t/e la( or t/e sti.ulation o$ t/e .arties re6uires anot/er standard o$ care. 102-a!Art. 116-. T/e creditor /as a rig/t to t/e $ruits o$ t/e t/ing $ro% t/e ti%e t/e obligation to deliver it arises. Ho(ever, /e s/all ac6uire no real rig/t over it until t/e sa%e /as been delivered to /i%. 1025!Art. 1165. :/en (/at is to be delivered is a deter%inate t/ing, t/e creditor, in addition to t/e rig/t granted /i% by Article 11"0, %ay co%.el t/e debtor to %a5e t/e delivery.9$ t/e t/ing is indeter%inate or generic, /e %ay as5 t/at t/e obligation be co%.lied (it/ at t/e e3.ense o$ t/e debtor.9$ t/e obligor delays, or /as .ro%ised to deliver t/e sa%e t/ing to t(o or %ore .ersons (/o do not /ave t/e sa%e interest, /e s/all be res.onsible $or any $ortuitous event until /e /as e$$ected t/e delivery. 1026!Art. 1166. T/e obligation to give a deter%inate t/ing includes t/at o$ delivering all its accessions and accessories, even t/oug/ t/ey %ay not /ave been %entioned. 102"a!Art. 116". 9$ a .erson obliged to do so%et/ing $ails to do it, t/e sa%e s/all be e3ecuted at /is cost.T/is sa%e rule s/all be observed i$ /e does it in contravention o$ t/e tenor o$ t/e obligation. ;urt/er%ore, it %ay be decreed t/at (/at /as been .oorly done be undone. 1021!Art. 1161. :/en t/e obligation consists in not doing, and t/e obligor does (/at /as been $orbidden /i%, it s/all also be undone at /is e3.ense. 1022a!Art. 1162. T/ose obliged to deliver or to do so%et/ing incur in delay $ro% t/e ti%e t/e obligee judicially or e3trajudicially de%ands $ro% t/e% t/e $ul$ill%ent o$ t/eir obligation.Ho(ever, t/e de%and by t/e creditor s/all not be necessary in order t/at delay %ay e3ist&1! :/en t/e obligation or t/e la( e3.ressly so declare) or*! :/en $ro% t/e nature and t/e circu%stances o$ t/e obligation it a..ears t/at t/e designation o$ t/e ti%e (/en t/e t/ing is to be delivered or t/e service is to be rendered (as a controlling %otive $or t/e establis/%ent o$ t/e contract) or+! :/en de%and (ould be useless, as (/en t/e obligor /as rendered it beyond /is .o(er to .er$or%.9n reci.rocal obligations, neit/er .arty incurs in delay i$ t/e ot/er does not co%.ly or is not ready to co%.ly in a .ro.er %anner (it/ (/at is incu%bent u.on /i%. ;ro% t/e %o%ent one o$ t/e .arties $ul$ills /is obligation, delay by t/e ot/er begins. 1100a!Art. 11"0. T/ose (/o in t/e .er$or%ance o$ t/eir obligations are guilty o$ $raud, negligence, or delay, and t/ose (/o in any %anner contravene t/e tenor t/ereo$, are liable $or da%ages. 1101!Art. 11"1. Res.onsibility arising $ro% $raud is de%andable in all obligations. Any (aiver o$ an action $or $uture $raud is void. 110*a!Art. 11"*. Res.onsibility arising $ro% negligence in t/e .er$or%ance o$ every 5ind o$ obligation is also de%andable, but suc/ liability %ay be regulated by t/e courts, according to t/e circu%stances. 110+!Art. 11"+. T/e $ault or negligence o$ t/e obligor consists in t/e o%ission o$ t/at diligence (/ic/ is re6uired by t/e nature o$ t/e obligation and corres.onds (it/ t/e circu%stances o$ t/e .ersons, o$ t/e ti%e and o$ t/e .lace. :/en negligence s/o(s bad $ait/, t/e .rovisions o$ Articles 11"1 and **01, .aragra./ *, s/all a..ly.9$ t/e la( or contract does not state t/e diligence (/ic/ is to be observed in t/e .er$or%ance, t/at (/ic/ is e3.ected o$ a good $at/er o$ a $a%ily s/all be re6uired. 110-a!Art. 11"-. E3ce.t in cases e3.ressly s.eci$ied by t/e la(, or (/en it is ot/er(ise declared by sti.ulation, or (/en t/e nature o$ t/e obligation re6uires t/e assu%.tion o$ ris5, no .erson s/all be res.onsible $or t/ose events (/ic/ could not be $oreseen, or (/ic/, t/oug/ $oreseen, (ere inevitable. 1105a!Art. 11"5. 1. ? Pure and Conditional #bligations Art. 11"2. Every obligation (/ose .er$or%ance does not de.end u.on a $uture or uncertain event, or u.on a .ast event un5no(n to t/e .arties, is de%andable at once.Every obligation (/ic/ contains a resolutory condition s/all also be de%andable, (it/out .rejudice to t/e e$$ects o$ t/e /a..ening o$ t/e event. 111+!Art. 1110. :/en t/e debtor binds /i%sel$ to .ay (/en /is %eans .er%it /i% to do so, t/e obligation s/all be dee%ed to be one (it/ a .eriod, subject to t/e .rovisions o$ Article 112". n!Art. 1111. 9n conditional obligations, t/e ac6uisition o$ rig/ts, as (ell as t/e e3tinguis/%ent or loss o$ t/ose already ac6uired,s/all de.end u.on t/e /a..ening o$ t/e event (/ic/ constitutes t/e condition. 111-!Art. 111*. :/en t/e $ul$ill%ent o$ t/e condition de.ends u.on t/e sole (ill o$ t/e debtor, t/e conditional obligation s/all be void. 9$ it de.ends u.on c/ance or u.on t/e (ill o$ a t/ird .erson, t/e obligation s/all ta5e e$$ect in con$or%ity (it/ t/e .rovisions o$ t/is Code. 1115!Art. 111+. 9%.ossible conditions, t/ose contrary to good custo%s or .ublic .olicy and t/ose .ro/ibited by la( s/all annul t/e obligation (/ic/ de.ends u.on t/e%. 9$ t/e obligation is divisible, t/at .art t/ereo$ (/ic/ is not a$$ected by t/e i%.ossible or unla($ul condition s/all be valid.T/e condition not to do an i%.ossible t/ing s/all be considered as not /aving been agreed u.on. 1116a!Art. 111-. T/e condition t/at so%e event /a..en at a deter%inate ti%e s/all e3tinguis/ t/e obligation as soon as t/e ti%e e3.ires or i$ it /as beco%e indubitable t/at t/e event (ill not ta5e .lace. 111"!Art. 1115. T/e condition t/at so%e event (ill not /a..en at a deter%inate ti%e s/all render t/e obligation e$$ective $ro% t/e %o%ent t/e ti%e indicated /as ela.sed, or i$ it /as beco%e evident t/at t/e event cannot occur.9$ no ti%e /as been $i3ed, t/e condition s/all be dee%ed $ul$illed at suc/ ti%e as %ay /ave .robably been conte%.lated, bearing in %ind t/e nature o$ t/e obligation. 1111!Art. 1116. T/e condition s/all be dee%ed $ul$illed (/en t/e obligor voluntarily .revents its $ul$ill%ent. 1112!Art. 111". T/e e$$ects o$ a conditional obligation to give, once t/e condition /as been $ul$illed, s/all retroact to t/e day o$ t/e constitution o$ t/e obligation. >evert/eless, (/en t/e obligation i%.oses reci.rocal .restations u.on t/e .arties, t/e $ruits and interests during t/e .endency o$ t/e condition s/all be dee%ed to /ave been %utually co%.ensated. 9$ t/e obligation is unilateral, t/e debtor s/all a..ro.riate t/e $ruits and interests received, unless $ro% t/e nature and circu%stances o$ t/e obligation it s/ould be in$erred t/at t/e intention o$ t/e .erson constituting t/e sa%e (as di$$erent.9n obligations to do and not to do, t/e courts s/all deter%ine, in eac/ case, t/e retroactive e$$ect o$ t/e condition t/at /as been co%.lied (it/. 11*0!Art. 1111. T/e creditor %ay, be$ore t/e $ul$ill%ent o$ t/e condition, bring t/e a..ro.riate actions $or t/e .reservation o$ /is rig/t.T/e debtor %ay recover (/at during t/e sa%e ti%e /e /as .aid by %ista5e in case o$ a sus.ensive condition. 11*1a!Art. 1112. :/en t/e conditions /ave been i%.osed (it/ t/e intention o$ sus.ending t/e e$$icacy o$ an obligation to give, t/e $ollo(ing rules s/all be observed in case o$ t/e i%.rove%ent, loss or deterioration o$ t/e t/ing during t/e .endency o$ t/e condition&1! 9$ t/e t/ing is lost (it/out t/e $ault o$ t/e debtor, t/e obligation s/all be e3tinguis/ed)*! 9$ t/e t/ing is lost t/roug/ t/e $ault o$ t/e debtor, /e s/all be obliged to .ay da%ages) it is understood t/at t/e t/ing is lost(/en it .eris/es, or goes out o$ co%%erce, or disa..ears in suc/ a (ay t/at its e3istence is un5no(n or it cannot be recovered)+! :/en t/e t/ing deteriorates (it/out t/e $ault o$ t/e debtor, t/e i%.air%ent is to be borne by t/e creditor)-! 9$ it deteriorates t/roug/ t/e $ault o$ t/e debtor, t/e creditor %ay c/oose bet(een t/e rescission o$ t/e obligation and its $ul$ill%ent, (it/ inde%nity $or da%ages in eit/er case)5! 9$ t/e t/ing is i%.roved by its nature, or by ti%e, t/e i%.rove%ent s/all inure to t/e bene$it o$ t/e creditor)6! 9$ it is i%.roved at t/e e3.ense o$ t/e debtor, /e s/all /ave no ot/er rig/t t/an t/at granted to t/e usu$ructuary. 11**!Art. 1120. :/en t/e conditions /ave $or t/eir .ur.ose t/e e3tinguis/%ent o$ an obligation to give, t/e .arties, u.on t/e $ul$ill%ent o$ said conditions, s/all return to eac/ ot/er (/at t/ey /ave received.9n case o$ t/e loss, deterioration or i%.rove%ent o$ t/e t/ing, t/e .rovisions (/ic/, (it/ res.ect to t/e debtor, are laid do(n in t/e .receding article s/all be a..lied to t/e .arty (/o is bound to return.As $or t/e obligations to do and not to do, t/e .rovisions o$ t/e second .aragra./ o$ Article 111" s/all be observed as regards t/e e$$ect o$ t/e e3tinguis/%ent o$ t/e obligation. 11*+!Art. 1121. T/e .o(er to rescind obligations is i%.lied in reci.rocal ones, in case one o$ t/e obligors s/ould not co%.ly (it/ (/at is incu%bent u.on /i%.T/e injured .arty %ay c/oose bet(een t/e $ul$ill%ent and t/e rescission o$ t/e obligation, (it/ t/e .ay%ent o$ da%ages in eit/er case. He %ay also see5 rescission, even a$ter /e /as c/osen $ul$ill%ent, i$ t/e latter s/ould beco%e i%.ossible.T/e court s/all decree t/e rescission clai%ed, unless t/ere be just cause aut/ori@ing t/e $i3ing o$ a .eriod.T/is is understood to be (it/out .rejudice to t/e rig/ts o$ t/ird .ersons (/o /ave ac6uired t/e t/ing, in accordance (it/ Articles 1+15 and 1+11 and t/e Aortgage 'a(. 11*-!Art. 112*. 9n case bot/ .arties /ave co%%itted a breac/ o$ t/e obligation, t/e liability o$ t/e $irst in$ractor s/all be e6uitably te%.ered by t/e courts. 9$ it cannot be deter%ined (/ic/ o$ t/e .arties $irst violated t/e contract, t/e sa%e s/all be dee%ed e3tinguis/ed, and eac/ s/all bear /is o(n da%ages. n! =ECT9#> *. ? #bligations (it/ a Period Art. 112+. #bligations $or (/ose $ul$ill%ent a day certain /as been $i3ed, s/all be de%andable only (/en t/at day co%es.#bligations (it/ a resolutory .eriod ta5e e$$ect at once, but ter%inate u.on arrival o$ t/e day certain.A day certain is understood to be t/at (/ic/ %ust necessarily co%e, alt/oug/ it %ay not be 5no(n (/en.9$ t/e uncertainty consists in (/et/er t/e day (ill co%e or not, t/e obligation is conditional, and it s/all be regulated by t/e rules o$ t/e .receding =ection. 11*5a!Art. 112-. 9n case o$ loss, deterioration or i%.rove%ent o$ t/e t/ing be$ore t/e arrival o$ t/e day certain, t/e rules in Article 1112 s/all be observed. n!Art. 1125. Anyt/ing .aid or delivered be$ore t/e arrival o$ t/e .eriod, t/e obligor being una(are o$ t/e .eriod or believing t/att/e obligation /as beco%e due and de%andable, %ay be recovered, (it/ t/e $ruits and interests. 11*6a!Art. 1126. :/enever in an obligation a .eriod is designated, it is .resu%ed to /ave been establis/ed $or t/e bene$it o$ bot/ t/e creditor and t/e debtor, unless $ro% t/e tenor o$ t/e sa%e or ot/er circu%stances it s/ould a..ear t/at t/e .eriod /as been establis/ed in $avor o$ one or o$ t/e ot/er. 11*"!Art. 112". 9$ t/e obligation does not $i3 a .eriod, but $ro% its nature and t/e circu%stances it can be in$erred t/at a .eriod (as intended, t/e courts %ay $i3 t/e duration t/ereo$.T/e courts s/all also $i3 t/e duration o$ t/e .eriod (/en it de.ends u.on t/e (ill o$ t/e debtor.9n every case, t/e courts s/all deter%ine suc/ .eriod as %ay under t/e circu%stances /ave been .robably conte%.lated by t/e .arties. #nce $i3ed by t/e courts, t/e .eriod cannot be c/anged by t/e%. 11*1a!Art. 1121. T/e debtor s/all lose every rig/t to %a5e use o$ t/e .eriod&1! :/en a$ter t/e obligation /as been contracted, /e beco%es insolvent, unless /e gives a guaranty or security $or t/e debt)*! :/en /e does not $urnis/ to t/e creditor t/e guaranties or securities (/ic/ /e /as .ro%ised)+! :/en by /is o(n acts /e /as i%.aired said guaranties or securities a$ter t/eir establis/%ent, and (/en t/roug/ a $ortuitous event t/ey disa..ear, unless /e i%%ediately gives ne( ones e6ually satis$actory)-! :/en t/e debtor violates any underta5ing, in consideration o$ (/ic/ t/e creditor agreed to t/e .eriod)5! :/en t/e debtor atte%.ts to abscond. 11*2a! =ECT9#> +. ? Alternative #bligations Art. 1122. A .erson alternatively bound by di$$erent .restations s/all co%.letely .er$or% one o$ t/e%.T/e creditor cannot be co%.elled to receive .art o$ one and .art o$ t/e ot/er underta5ing. 11+1!Art. 1*00. T/e rig/t o$ c/oice belongs to t/e debtor, unless it /as been e3.ressly granted to t/e creditor.T/e debtor s/all /ave no rig/t to c/oose t/ose .restations (/ic/ are i%.ossible, unla($ul or (/ic/ could not /ave been t/e object o$ t/e obligation. 11+*!Art. 1*01. T/e c/oice s/all .roduce no e$$ect e3ce.t $ro% t/e ti%e it /as been co%%unicated. 11++!Art. 1*0*. T/e debtor s/all lose t/e rig/t o$ c/oice (/en a%ong t/e .restations (/ereby /e is alternatively bound, only one is .racticable. 11+-!Art. 1*0+. 9$ t/roug/ t/e creditorBs acts t/e debtor cannot %a5e a c/oice according to t/e ter%s o$ t/e obligation, t/e latter %ay rescind t/e contract (it/ da%ages. n!Art. 1*0-. T/e creditor s/all /ave a rig/t to inde%nity $or da%ages (/en, t/roug/ t/e $ault o$ t/e debtor, all t/e t/ings (/ic/ are alternatively t/e object o$ t/e obligation /ave been lost, or t/e co%.liance o$ t/e obligation /as beco%e i%.ossible.T/e inde%nity s/all be $i3ed ta5ing as a basis t/e value o$ t/e last t/ing (/ic/ disa..eared, or t/at o$ t/e service (/ic/ last beca%e i%.ossible.Ca%ages ot/er t/an t/e value o$ t/e last t/ing or service %ay also be a(arded. 11+5a!Art. 1*05. :/en t/e c/oice /as been e3.ressly given to t/e creditor, t/e obligation s/all cease to be alternative $ro% t/e day(/en t/e selection /as been co%%unicated to t/e debtor. -. ? Doint and =olidary #bligations Art. 1*0". T/e concurrence o$ t(o or %ore creditors or o$ t(o or %ore debtors in one and t/e sa%e obligation does not i%.lyt/at eac/ one o$ t/e $or%er /as a rig/t to de%and, or t/at eac/ one o$ t/e latter is bound to render, entire co%.liance (it/ t/e .restation. T/ere is a solidary liability only (/en t/e obligation e3.ressly so states, or (/en t/e la( or t/e nature o$ t/e obligation re6uires solidarity. 11+"a!Art. 1*01. 9$ $ro% t/e la(, or t/e nature or t/e (ording o$ t/e obligations to (/ic/ t/e .receding article re$ers t/e contrary does not a..ear, t/e credit or debt s/all be .resu%ed to be divided into as %any s/ares as t/ere are creditors or debtors, t/e credits or debts being considered distinct $ro% one anot/er, subject to t/e Rules o$ Court governing t/e %ulti.licity o$ suits. 11+1a!Art. 1*02. 9$ t/e division is i%.ossible, t/e rig/t o$ t/e creditors %ay be .rejudiced only by t/eir collective acts, and t/e debt can be en$orced only by .roceeding against all t/e debtors. 9$ one o$ t/e latter s/ould be insolvent, t/e ot/ers s/all not be liable $or /is s/are. 11+2!Art. 1*10. T/e indivisibility o$ an obligation does not necessarily give rise to solidarity. >or does solidarity o$ itsel$ i%.ly indivisibility. n!Art. 1*11. =olidarity %ay e3ist alt/oug/ t/e creditors and t/e debtors %ay not be bound in t/e sa%e %anner and by t/e sa%e .eriods and conditions. 11-0!Art. 1*1*. Eac/ one o$ t/e solidary creditors %ay do (/atever %ay be use$ul to t/e ot/ers, but not anyt/ing (/ic/ %ay be .rejudicial to t/e latter. 11-1a!Art. 1*1+. A solidary creditor cannot assign /is rig/ts (it/out t/e consent o$ t/e ot/ers. n!Art. 1*1-. T/e debtor %ay .ay any one o$ t/e solidary creditors) but i$ any de%and, judicial or e3trajudicial, /as been %ade by one o$ t/e%, .ay%ent s/ould be %ade to /i%. 11-*a!Art. 1*15. >ovation, co%.ensation, con$usion or re%ission o$ t/e debt, %ade by any o$ t/e solidary creditors or (it/ any o$ t/e solidary debtors, s/all e3tinguis/ t/e obligation, (it/out .rejudice to t/e .rovisions o$ Article 1*12.T/e creditor (/o %ay /ave e3ecuted any o$ t/ese acts, as (ell as /e (/o collects t/e debt, s/all be liable to t/e ot/ers $or t/e s/are in t/e obligation corres.onding to t/e%. 11-+!Art. 1*16. T/e creditor %ay .roceed against any one o$ t/e solidary debtors or so%e or all o$ t/e% si%ultaneously. T/e de%and %ade against one o$ t/e% s/all not be an obstacle to t/ose (/ic/ %ay subse6uently be directed against t/e ot/ers,so long as t/e debt /as not been $ully collected. 11--a!Art. 1*1". Pay%ent %ade by one o$ t/e solidary debtors e3tinguis/es t/e obligation. 9$ t(o or %ore solidary debtors o$$er to .ay, t/e creditor %ay c/oose (/ic/ o$$er to acce.t.He (/o %ade t/e .ay%ent %ay clai% $ro% /is co-debtors only t/e s/are (/ic/ corres.onds to eac/, (it/ t/e interest $or t/e.ay%ent already %ade. 9$ t/e .ay%ent is %ade be$ore t/e debt is due, no interest $or t/e intervening .eriod %ay be de%anded.:/en one o$ t/e solidary debtors cannot, because o$ /is insolvency, rei%burse /is s/are to t/e debtor .aying t/e obligation, suc/ s/are s/all be borne by all /is co-debtors, in .ro.ortion to t/e debt o$ eac/. 11-5a!Art. 1*11. Pay%ent by a solidary debtor s/all not entitle /i% to rei%burse%ent $ro% /is co-debtors i$ suc/ .ay%ent is %ade a$ter t/e obligation /as .rescribed or beco%e illegal. n!Art. 1*12. T/e re%ission %ade by t/e creditor o$ t/e s/are (/ic/ a$$ects one o$ t/e solidary debtors does not release t/e latter $ro% /is res.onsibility to(ards t/e co-debtors, in case t/e debt /ad been totally .aid by anyone o$ t/e% be$ore t/e re%ission (as e$$ected. 11-6a!Art. 1**0. T/e re%ission o$ t/e (/ole obligation, obtained by one o$ t/e solidary debtors, does not entitle /i% to rei%burse%ent $ro% /is co-debtors. n!Art. 1**1. 9$ t/e t/ing /as been lost or i$ t/e .restation /as beco%e i%.ossible (it/out t/e $ault o$ t/e solidary debtors, t/e obligation s/all be e3tinguis/ed.9$ t/ere (as $ault on t/e .art o$ any one o$ t/e%, all s/all be res.onsible to t/e creditor, $or t/e .rice and t/e .ay%ent o$ da%ages and interest, (it/out .rejudice to t/eir action against t/e guilty or negligent debtor.9$ t/roug/ a $ortuitous event, t/e t/ing is lost or t/e .er$or%ance /as beco%e i%.ossible a$ter one o$ t/e solidary debtors /as incurred in delay t/roug/ t/e judicial or e3trajudicial de%and u.on /i% by t/e creditor, t/e .rovisions o$ t/e .receding .aragra./ s/all a..ly. 11-"a!Art. 1***. A solidary debtor %ay, in actions $iled by t/e creditor, avail /i%sel$ o$ all de$enses (/ic/ are derived $ro% t/e nature o$ t/e obligation and o$ t/ose (/ic/ are .ersonal to /i%, or .ertain to /is o(n s/are. :it/ res.ect to t/ose (/ic/ .ersonally belong to t/e ot/ers, /e %ay avail /i%sel$ t/ereo$ only as regards t/at .art o$ t/e debt $or (/ic/ t/e latter are res.onsible. 11-1a! =ECT9#> 5. ? Civisible and 9ndivisible #bligations Art. 1**+. T/e divisibility or indivisibility o$ t/e t/ings t/at are t/e object o$ obligations in (/ic/ t/ere is only one debtor and only one creditor does not alter or %odi$y t/e .rovisions o$ C/a.ter * o$ t/is Title. 11-2!Art. 1**-. A joint indivisible obligation gives rise to inde%nity $or da%ages $ro% t/e ti%e anyone o$ t/e debtors does not co%.ly (it/ /is underta5ing. T/e debtors (/o %ay /ave been ready to $ul$ill t/eir .ro%ises s/all not contribute to t/e inde%nity beyond t/e corres.onding .ortion o$ t/e .rice o$ t/e t/ing or o$ t/e value o$ t/e service in (/ic/ t/e obligation consists. 1150!Art. 1**5. ;or t/e .ur.oses o$ t/e .receding articles, obligations to give de$inite t/ings and t/ose (/ic/ are not susce.tible o$ .artial .er$or%ance s/all be dee%ed to be indivisible.:/en t/e obligation /as $or its object t/e e3ecution o$ a certain nu%ber o$ days o$ (or5, t/e acco%.lis/%ent o$ (or5 by %etrical units, or analogous t/ings (/ic/ by t/eir nature are susce.tible o$ .artial .er$or%ance, it s/all be divisible.Ho(ever, even t/oug/ t/e object or service %ay be ./ysically divisible, an obligation is indivisible i$ so .rovided by la( or intended by t/e .arties.9n obligations not to do, divisibility or indivisibility s/all be deter%ined by t/e c/aracter o$ t/e .restation in eac/ .articular case. 1151a! =ECT9#> 6. ? #bligations (it/ a Penal Clause Art. 1**6. 9n obligations (it/ a .enal clause, t/e .enalty s/all substitute t/e inde%nity $or da%ages and t/e .ay%ent o$ interests in case o$ nonco%.liance, i$ t/ere is no sti.ulation to t/e contrary. >evert/eless, da%ages s/all be .aid i$ t/e obligor re$uses to .ay t/e .enalty or is guilty o$ $raud in t/e $ul$ill%ent o$ t/e obligation.T/e .enalty %ay be en$orced only (/en it is de%andable in accordance (it/ t/e .rovisions o$ t/is Code. 115*a!Art. 1**". T/e debtor cannot e3e%.t /i%sel$ $ro% t/e .er$or%ance o$ t/e obligation by .aying t/e .enalty, save in t/e case (/ere t/is rig/t /as been e3.ressly reserved $or /i%. >eit/er can t/e creditor de%and t/e $ul$ill%ent o$ t/e obligation and t/e satis$action o$ t/e .enalty at t/e sa%e ti%e, unless t/is rig/t /as been clearly granted /i%. Ho(ever, i$ a$ter t/e creditor /as decided to re6uire t/e $ul$ill%ent o$ t/e obligation, t/e .er$or%ance t/ereo$ s/ould beco%e i%.ossible (it/out /is $ault, t/e .enalty %ay be en$orced. 115+a!Art. 1**1. Proo$ o$ actual da%ages su$$ered by t/e creditor is not necessary in order t/at t/e .enalty %ay be de%anded. n!Art. 1**2. T/e judge s/all e6uitably reduce t/e .enalty (/en t/e .rinci.al obligation /as been .artly or irregularly co%.lied (it/ by t/e debtor. Even i$ t/ere /as been no .er$or%ance, t/e .enalty %ay also be reduced by t/e courts i$ it is ini6uitous orunconscionable. 115-a!Art. 1*+0. T/e nullity o$ t/e .enal clause does not carry (it/ it t/at o$ t/e .rinci.al obligation.T/e nullity o$ t/e .rinci.al obligation carries (it/ it t/at o$ t/e .enal clause. 1155! CHAPTER -b - EXTINGUISHENT OF OBLIGATIONS EE>ERA' PR#89=9#>= Art. 1*+1. #bligations are e3tinguis/ed&1! 4y .ay%ent or .er$or%ance&*! 4y t/e loss o$ t/e t/ing due&+! 4y t/e condonation or re%ission o$ t/e debt)-! 4y t/e con$usion or %erger o$ t/e rig/ts o$ creditor and debtor)5! 4y co%.ensation)6! 4y novation.#t/er causes o$ e3tinguis/%ent o$ obligations, suc/ as annul%ent, rescission, $ul$ill%ent o$ a resolutory condition, and .rescri.tion, are governed else(/ere in t/is Code. 1156a! =ECT9#> 1. ? Pay%ent or Per$or%ance Art. 1*+*. Pay%ent %eans not only t/e delivery o$ %oney but also t/e .er$or%ance, in any ot/er %anner, o$ an obligation. n!Art. 1*++. A debt s/all not be understood to /ave been .aid unless t/e t/ing or service in (/ic/ t/e obligation consists /as been co%.letely delivered or rendered, as t/e case %ay be. 115"!Art. 1*+-. 9$ t/e obligation /as been substantially .er$or%ed in good $ait/, t/e obligor %ay recover as t/oug/ t/ere /ad beena strict and co%.lete $ul$ill%ent, less da%ages su$$ered by t/e obligee. n!Art. 1*+5. :/en t/e obligee acce.ts t/e .er$or%ance, 5no(ing its inco%.leteness or irregularity, and (it/out e3.ressing any .rotest or objection, t/e obligation is dee%ed $ully co%.lied (it/. n!Art. 1*+6. T/e creditor is not bound to acce.t .ay%ent or .er$or%ance by a t/ird .erson (/o /as no interest in t/e $ul$ill%ento$ t/e obligation, unless t/ere is a sti.ulation to t/e contrary.:/oever .ays $or anot/er %ay de%and $ro% t/e debtor (/at /e /as .aid, e3ce.t t/at i$ /e .aid (it/out t/e 5no(ledge or against t/e (ill o$ t/e debtor, /e can recover only inso$ar as t/e .ay%ent /as been bene$icial to t/e debtor. 1151a!Art. 1*+". :/oever .ays on be/al$ o$ t/e debtor (it/out t/e 5no(ledge or against t/e (ill o$ t/e latter, cannot co%.el t/e creditor to subrogate /i% in /is rig/ts, suc/ as t/ose arising $ro% a %ortgage, guaranty, or .enalty. 1152a!Art. 1*+1. Pay%ent %ade by a t/ird .erson (/o does not intend to be rei%bursed by t/e debtor is dee%ed to be a donation,(/ic/ re6uires t/e debtorBs consent. 4ut t/e .ay%ent is in any case valid as to t/e creditor (/o /as acce.ted it. n!Art. 1*+2. 9n obligations to give, .ay%ent %ade by one (/o does not /ave t/e $ree dis.osal o$ t/e t/ing due and ca.acity to alienate it s/all not be valid, (it/out .rejudice to t/e .rovisions o$ Article 1-*" under t/e Title on F>atural #bligations.G 1160a!Art. 1*-0. Pay%ent s/all be %ade to t/e .erson in (/ose $avor t/e obligation /as been constituted, or /is successor in interest, or any .erson aut/ori@ed to receive it. 116*a!Art. 1*-1. Pay%ent to a .erson (/o is inca.acitated to ad%inister /is .ro.erty s/all be valid i$ /e /as 5e.t t/e t/ing delivered, or inso$ar as t/e .ay%ent /as been bene$icial to /i%.Pay%ent %ade to a t/ird .erson s/all also be valid inso$ar as it /as redounded to t/e bene$it o$ t/e creditor. =uc/ bene$it to t/e creditor need not be .roved in t/e $ollo(ing cases&1! 9$ a$ter t/e .ay%ent, t/e t/ird .erson ac6uires t/e creditorBs rig/ts)*! 9$ t/e creditor rati$ies t/e .ay%ent to t/e t/ird .erson)+! 9$ by t/e creditorBs conduct, t/e debtor /as been led to believe t/at t/e t/ird .erson /ad aut/ority to receive t/e .ay%ent. 116+a!Art. 1*-*. Pay%ent %ade in good $ait/ to any .erson in .ossession o$ t/e credit s/all release t/e debtor. 116-!Art. 1*-+. Pay%ent %ade to t/e creditor by t/e debtor a$ter t/e latter /as been judicially ordered to retain t/e debt s/all not be valid. 1165!Art. 1*--. T/e debtor o$ a t/ing cannot co%.el t/e creditor to receive a di$$erent one, alt/oug/ t/e latter %ay be o$ t/e sa%e value as, or %ore valuable t/an t/at (/ic/ is due.9n obligations to do or not to do, an act or $orbearance cannot be substituted by anot/er act or $orbearance against t/e obligeeBs (ill. 1166a!Art. 1*-5. Cation in .ay%ent, (/ereby .ro.erty is alienated to t/e creditor in satis$action o$ a debt in %oney, s/all be governed by t/e la( o$ sales. n!Art. 1*-6. :/en t/e obligation consists in t/e delivery o$ an indeter%inate or generic t/ing, (/ose 6uality and circu%stances/ave not been stated, t/e creditor cannot de%and a t/ing o$ su.erior 6uality. >eit/er can t/e debtor deliver a t/ing o$ in$erior6uality. T/e .ur.ose o$ t/e obligation and ot/er circu%stances s/all be ta5en into consideration. 116"a!Art. 1*-". *. ? 'oss o$ t/e T/ing Cue Art. 1*6*. An obligation (/ic/ consists in t/e delivery o$ a deter%inate t/ing s/all be e3tinguis/ed i$ it s/ould be lost or destroyed (it/out t/e $ault o$ t/e debtor, and be$ore /e /as incurred in delay.:/en by la( or sti.ulation, t/e obligor is liable even $or $ortuitous events, t/e loss o$ t/e t/ing does not e3tinguis/ t/e obligation, and /e s/all be res.onsible $or da%ages. T/e sa%e rule a..lies (/en t/e nature o$ t/e obligation re6uires t/e assu%.tion o$ ris5. 111*a!Art. 1*6+. 9n an obligation to deliver a generic t/ing, t/e loss or destruction o$ anyt/ing o$ t/e sa%e 5ind does not e3tinguis/ t/e obligation. n!Art. 1*6-. T/e courts s/all deter%ine (/et/er, under t/e circu%stances, t/e .artial loss o$ t/e object o$ t/e obligation is so i%.ortant as to e3tinguis/ t/e obligation. n!Art. 1*65. :/enever t/e t/ing is lost in t/e .ossession o$ t/e debtor, it s/all be .resu%ed t/at t/e loss (as due to /is $ault, unless t/ere is .roo$ to t/e contrary, and (it/out .rejudice to t/e .rovisions o$ article 1165. T/is .resu%.tion does not a..ly in case o$ eart/6ua5e, $lood, stor%, or ot/er natural cala%ity. 111+a!Art. 1*66. T/e debtor in obligations to do s/all also be released (/en t/e .restation beco%es legally or ./ysically i%.ossible (it/out t/e $ault o$ t/e obligor. 111-a!Art. 1*6". :/en t/e service /as beco%e so di$$icult as to be %ani$estly beyond t/e conte%.lation o$ t/e .arties, t/e obligor %ay also be released t/ere$ro%, in (/ole or in .art. n!Art. 1*61. :/en t/e debt o$ a t/ing certain and deter%inate .roceeds $ro% a cri%inal o$$ense, t/e debtor s/all not be e3e%.ted $ro% t/e .ay%ent o$ its .rice, (/atever %ay be t/e cause $or t/e loss, unless t/e t/ing /aving been o$$ered by /i% to t/e .erson (/o s/ould receive it, t/e latter re$used (it/out justi$ication to acce.t it. 1115!Art. 1*62. T/e obligation /aving been e3tinguis/ed by t/e loss o$ t/e t/ing, t/e creditor s/all /ave all t/e rig/ts o$ action (/ic/ t/e debtor %ay /ave against t/ird .ersons by reason o$ t/e loss. 1116! =ECT9#> +. ? Condonation or Re%ission o$ t/e Cebt Art. 1*"0. Condonation or re%ission is essentially gratuitous, and re6uires t/e acce.tance by t/e obligor. 9t %ay be %ade e3.ressly or i%.liedly.#ne and t/e ot/er 5ind s/all be subject to t/e rules (/ic/ govern ino$$icious donations. E3.ress condonation s/all, $urt/er%ore, co%.ly (it/ t/e $or%s o$ donation. 111"!Art. 1*"1. T/e delivery o$ a .rivate docu%ent evidencing a credit, %ade voluntarily by t/e creditor to t/e debtor, i%.lies t/e renunciation o$ t/e action (/ic/ t/e $or%er /ad against t/e latter.9$ in order to nulli$y t/is (aiver it s/ould be clai%ed to be ino$$icious, t/e debtor and /is /eirs %ay u./old it by .roving t/at t/e delivery o$ t/e docu%ent (as %ade in virtue o$ .ay%ent o$ t/e debt. 1111!Art. 1*"*. :/enever t/e .rivate docu%ent in (/ic/ t/e debt a..ears is $ound in t/e .ossession o$ t/e debtor, it s/all be .resu%ed t/at t/e creditor delivered it voluntarily, unless t/e contrary is .roved. 1112!Art. 1*"+. T/e renunciation o$ t/e .rinci.al debt s/all e3tinguis/ t/e accessory obligations) but t/e (aiver o$ t/e latter s/all leave t/e $or%er in $orce. 1120!Art. 1*"-. 9t is .resu%ed t/at t/e accessory obligation o$ .ledge /as been re%itted (/en t/e t/ing .ledged, a$ter its delivery to t/e creditor, is $ound in t/e .ossession o$ t/e debtor, or o$ a t/ird .erson (/o o(ns t/e t/ing. 1121a! =ECT9#> -. ? Con$usion or Aerger o$ Rig/ts Art. 1*"5. T/e obligation is e3tinguis/ed $ro% t/e ti%e t/e c/aracters o$ creditor and debtor are %erged in t/e sa%e .erson. 112*a!Art. 1*"6. Aerger (/ic/ ta5es .lace in t/e .erson o$ t/e .rinci.al debtor or creditor bene$its t/e guarantors. Con$usion (/ic/ ta5es .lace in t/e .erson o$ any o$ t/e latter does not e3tinguis/ t/e obligation. 112+!Art. 1*"". Con$usion does not e3tinguis/ a joint obligation e3ce.t as regards t/e s/are corres.onding to t/e creditor or debtor in (/o% t/e t(o c/aracters concur. 112-! =ECT9#> 5. ? Co%.ensation Art. 1*"1. Co%.ensation s/all ta5e .lace (/en t(o .ersons, in t/eir o(n rig/t, are creditors and debtors o$ eac/ ot/er. 1125!Art. 1*"2. 9n order t/at co%.ensation %ay be .ro.er, it is necessary&1! T/at eac/ one o$ t/e obligors be bound .rinci.ally, and t/at /e be at t/e sa%e ti%e a .rinci.al creditor o$ t/e ot/er)*! T/at bot/ debts consist in a su% o$ %oney, or i$ t/e t/ings due are consu%able, t/ey be o$ t/e sa%e 5ind, and also o$ t/esa%e 6uality i$ t/e latter /as been stated)+! T/at t/e t(o debts be due)-! T/at t/ey be li6uidated and de%andable)5! T/at over neit/er o$ t/e% t/ere be any retention or controversy, co%%enced by t/ird .ersons and co%%unicated in due ti%e to t/e debtor. 1126!Art. 1*10. >ot(it/standing t/e .rovisions o$ t/e .receding article, t/e guarantor %ay set u. co%.ensation as regards (/at t/e creditor %ay o(e t/e .rinci.al debtor. 112"!Art. 1*11. Co%.ensation %ay be total or .artial. :/en t/e t(o debts are o$ t/e sa%e a%ount, t/ere is a total co%.ensation.n!Art. 1*1*. T/e .arties %ay agree u.on t/e co%.ensation o$ debts (/ic/ are not yet due. n!Art. 1*1+. 9$ one o$ t/e .arties to a suit over an obligation /as a clai% $or da%ages against t/e ot/er, t/e $or%er %ay set it o$$by .roving /is rig/t to said da%ages and t/e a%ount t/ereo$. n!Art. 1*1-. :/en one or bot/ debts are rescissible or voidable, t/ey %ay be co%.ensated against eac/ ot/er be$ore t/ey arejudicially rescinded or avoided. n!Art. 1*15. T/e debtor (/o /as consented to t/e assign%ent o$ rig/ts %ade by a creditor in $avor o$ a t/ird .erson, cannot set u. against t/e assignee t/e co%.ensation (/ic/ (ould .ertain to /i% against t/e assignor, unless t/e assignor (as noti$ied by t/e debtor at t/e ti%e /e gave /is consent, t/at /e reserved /is rig/t to t/e co%.ensation.9$ t/e creditor co%%unicated t/e cession to /i% but t/e debtor did not consent t/ereto, t/e latter %ay set u. t/e co%.ensation o$ debts .revious to t/e cession, but not o$ subse6uent ones.9$ t/e assign%ent is %ade (it/out t/e 5no(ledge o$ t/e debtor, /e %ay set u. t/e co%.ensation o$ all credits .rior to t/e sa%e and also later ones until /e /ad 5no(ledge o$ t/e assign%ent. 1121a!Art. 1*16. Co%.ensation ta5es .lace by o.eration o$ la(, even t/oug/ t/e debts %ay be .ayable at di$$erent .laces, but t/ere s/all be an inde%nity $or e3.enses o$ e3c/ange or trans.ortation to t/e .lace o$ .ay%ent. 1122a!Art. 1*1". Co%.ensation s/all not be .ro.er (/en one o$ t/e debts arises $ro% a de.ositu% or $ro% t/e obligations o$ a de.ositary or o$ a bailee in co%%odatu%.>eit/er can co%.ensation be set u. against a creditor (/o /as a clai% $or su..ort due by gratuitous title, (it/out .rejudice to t/e .rovisions o$ .aragra./ * o$ Article +01. 1*00a!Art. 1*11. >eit/er s/all t/ere be co%.ensation i$ one o$ t/e debts consists in civil liability arising $ro% a .enal o$$ense. n!Art. 1*12. 9$ a .erson s/ould /ave against /i% several debts (/ic/ are susce.tible o$ co%.ensation, t/e rules on t/e a..lication o$ .ay%ents s/all a..ly to t/e order o$ t/e co%.ensation. 1*01!Art. 1*20. :/en all t/e re6uisites %entioned in Article 1*"2 are .resent, co%.ensation ta5es e$$ect by o.eration o$ la(, and e3tinguis/es bot/ debts to t/e concurrent a%ount, even t/oug/ t/e creditors and debtors are not a(are o$ t/e co%.ensation. 1*0*a! =ECT9#> 6. ? >ovation Art. 1*21. #bligations %ay be %odi$ied by&1! C/anging t/eir object or .rinci.al conditions)*! =ubstituting t/e .erson o$ t/e debtor)+! =ubrogating a t/ird .erson in t/e rig/ts o$ t/e creditor. 1*0+!Art. 1*2*. 9n order t/at an obligation %ay be e3tinguis/ed by anot/er (/ic/ substitute t/e sa%e, it is i%.erative t/at it be so declared in une6uivocal ter%s, or t/at t/e old and t/e ne( obligations be on every .oint inco%.atible (it/ eac/ ot/er. 1*0-!Art. 1*2+. >ovation (/ic/ consists in substituting a ne( debtor in t/e .lace o$ t/e original one, %ay be %ade even (it/out t/e 5no(ledge or against t/e (ill o$ t/e latter, but not (it/out t/e consent o$ t/e creditor. Pay%ent by t/e ne( debtor gives /i% t/e rig/ts %entioned in Articles 1*+6 and 1*+". 1*05a!Art. 1*2-. 9$ t/e substitution is (it/out t/e 5no(ledge or against t/e (ill o$ t/e debtor, t/e ne( debtorBs insolvency or non-$ul$ill%ent o$ t/e obligations s/all not give rise to any liability on t/e .art o$ t/e original debtor. n!Art. 1*25. T/e insolvency o$ t/e ne( debtor, (/o /as been .ro.osed by t/e original debtor and acce.ted by t/e creditor, s/all not revive t/e action o$ t/e latter against t/e original obligor, e3ce.t (/en said insolvency (as already e3isting and o$ .ublic 5no(ledge, or 5no(n to t/e debtor, (/en t/e delegated /is debt. 1*06a!Art. 1*26. :/en t/e .rinci.al obligation is e3tinguis/ed in conse6uence o$ a novation, accessory obligations %ay subsist only inso$ar as t/ey %ay bene$it t/ird .ersons (/o did not give t/eir consent. 1*0"!Art. 1*2". 9$ t/e ne( obligation is void, t/e original one s/all subsist, unless t/e .arties intended t/at t/e $or%er relation s/ould be e3tinguis/ed in any event. n!Art. 1*21. T/e novation is void i$ t/e original obligation (as void, e3ce.t (/en annul%ent %ay be clai%ed only by t/e debtor or (/en rati$ication validates acts (/ic/ are voidable. 1*01a!Art. 1*22. 9$ t/e original obligation (as subject to a sus.ensive or resolutory condition, t/e ne( obligation s/all be under t/e sa%e condition, unless it is ot/er(ise sti.ulated. n!Art. 1+00. =ubrogation o$ a t/ird .erson in t/e rig/ts o$ t/e creditor is eit/er legal or conventional. T/e $or%er is not .resu%ed, e3ce.t in cases e3.ressly %entioned in t/is Code) t/e latter %ust be clearly establis/ed in order t/at it %ay ta5e e$$ect. 1*02a!Art. 1+01. Conventional subrogation o$ a t/ird .erson re6uires t/e consent o$ t/e original .arties and o$ t/e t/ird .erson. n!Art. 1+0*. 9t is .resu%ed t/at t/ere is legal subrogation&1! :/en a creditor .ays anot/er creditor (/o is .re$erred, even (it/out t/e debtorBs 5no(ledge)*! :/en a t/ird .erson, not interested in t/e obligation, .ays (it/ t/e e3.ress or tacit a..roval o$ t/e debtor)+! :/en, even (it/out t/e 5no(ledge o$ t/e debtor, a .erson interested in t/e $ul$ill%ent o$ t/e obligation .ays, (it/out .rejudice to t/e e$$ects o$ con$usion as to t/e latterBs s/are. 1*10a!Art. 1+0+. =ubrogation trans$ers to t/e .ersons subrogated t/e credit (it/ all t/e rig/ts t/ereto a..ertaining, eit/er against t/e debtor or against t/ird .erson, be t/ey guarantors or .ossessors o$ %ortgages, subject to sti.ulation in a conventional subrogation. 1*1*a!Art. 1+0-. A creditor, to (/o% .artial .ay%ent /as been %ade, %ay e3ercise /is rig/t $or t/e re%ainder, and /e s/all be .re$erred to t/e .erson (/o /as been subrogated in /is .lace in virtue o$ t/e .artial .ay%ent o$ t/e sa%e credit. 1*1+! Title IICONTRACTS CHAPTER 1 - GENERAL PROVISIONS Art. 1+05. A contract is a %eeting o$ %inds bet(een t(o .ersons (/ereby one binds /i%sel$, (it/ res.ect to t/e ot/er, to give so%et/ing or to render so%e service. 1*5-a!Art. 1+06. T/e contracting .arties %ay establis/ suc/ sti.ulations, clauses, ter%s and conditions as t/ey %ay dee% convenient, .rovided t/ey are not contrary to la(, %orals, good custo%s, .ublic order, or .ublic .olicy. 1*55a!Art. 1+0". 9nno%inate contracts s/all be regulated by t/e sti.ulations o$ t/e .arties, by t/e .rovisions o$ Titles 9 and 99 o$ t/is 4oo5, by t/e rules governing t/e %ost analogous no%inate contracts, and by t/e custo%s o$ t/e .lace. n!Art. 1+01. T/e contract %ust bind bot/ contracting .arties) its validity or co%.liance cannot be le$t to t/e (ill o$ one o$ t/e%. 1*56a!Art. 1+02. T/e deter%ination o$ t/e .er$or%ance %ay be le$t to a t/ird .erson, (/ose decision s/all not be binding until it /asbeen %ade 5no(n to bot/ contracting .arties. n!Art. 1+10. T/e deter%ination s/all not be obligatory i$ it is evidently ine6uitable. 9n suc/ case, t/e courts s/all decide (/at is e6uitable under t/e circu%stances. n!Art. 1+11. Contracts ta5e e$$ect only bet(een t/e .arties, t/eir assigns and /eirs, e3ce.t in case (/ere t/e rig/ts and obligations arising $ro% t/e contract are not trans%issible by t/eir nature, or by sti.ulation or by .rovision o$ la(. T/e /eir is not liable beyond t/e value o$ t/e .ro.erty /e received $ro% t/e decedent.9$ a contract s/ould contain so%e sti.ulation in $avor o$ a t/ird .erson, /e %ay de%and its $ul$ill%ent .rovided /e co%%unicated /is acce.tance to t/e obligor be$ore its revocation. A %ere incidental bene$it or interest o$ a .erson is not su$$icient. T/e contracting .arties %ust /ave clearly and deliberately con$erred a $avor u.on a t/ird .erson. 1*5"a!Art. 1+1*. 9n contracts creating real rig/ts, t/ird .ersons (/o co%e into .ossession o$ t/e object o$ t/e contract are bound t/ereby, subject to t/e .rovisions o$ t/e Aortgage 'a( and t/e 'and Registration 'a(s. n!Art. 1+1+. Creditors are .rotected in cases o$ contracts intended to de$raud t/e%. n!Art. 1+1-. Any t/ird .erson (/o induces anot/er to violate /is contract s/all be liable $or da%ages to t/e ot/er contracting .arty. n!Art. 1+15. Contracts are .er$ected by %ere consent, and $ro% t/at %o%ent t/e .arties are bound not only to t/e $ul$ill%ent o$(/at /as been e3.ressly sti.ulated but also to all t/e conse6uences (/ic/, according to t/eir nature, %ay be in 5ee.ing (it/good $ait/, usage and la(. 1*51!Art. 1+16. Real contracts, suc/ as de.osit, .ledge and Co%%odatu%, are not .er$ected until t/e delivery o$ t/e object o$ t/e obligation. n!Art. 1+1". >o one %ay contract in t/e na%e o$ anot/er (it/out being aut/ori@ed by t/e latter, or unless /e /as by la( a rig/t to re.resent /i%.A contract entered into in t/e na%e o$ anot/er by one (/o /as no aut/ority or legal re.resentation, or (/o /as acted beyond/is .o(ers, s/all be unen$orceable, unless it is rati$ied, e3.ressly or i%.liedly, by t/e .erson on (/ose be/al$ it /as been e3ecuted, be$ore it is revo5ed by t/e ot/er contracting .arty. 1*52a! CHAPTER * - ESSENTIAL RE!UISITES OF CONTRACTS EE>ERA' PR#89=9#>= Art. 1+11. T/ere is no contract unless t/e $ollo(ing re6uisites concur&1! Consent o$ t/e contracting .arties)*! #bject certain (/ic/ is t/e subject %atter o$ t/e contract)+! Cause o$ t/e obligation (/ic/ is establis/ed. 1*61! =ECT9#> 1. ? Consent Art. 1+12. Consent is %ani$ested by t/e %eeting o$ t/e o$$er and t/e acce.tance u.on t/e t/ing and t/e cause (/ic/ are to constitute t/e contract. T/e o$$er %ust be certain and t/e acce.tance absolute. A 6uali$ied acce.tance constitutes a counter-o$$er.Acce.tance %ade by letter or telegra% does not bind t/e o$$erer e3ce.t $ro% t/e ti%e it ca%e to /is 5no(ledge. T/e contract, in suc/ a case, is .resu%ed to /ave been entered into in t/e .lace (/ere t/e o$$er (as %ade. 1*6*a!Art. 1+*0. An acce.tance %ay be e3.ress or i%.lied. n!Art. 1+*1. T/e .erson %a5ing t/e o$$er %ay $i3 t/e ti%e, .lace, and %anner o$ acce.tance, all o$ (/ic/ %ust be co%.lied (it/. n!Art. 1+**. An o$$er %ade t/roug/ an agent is acce.ted $ro% t/e ti%e acce.tance is co%%unicated to /i%. n!Art. 1+*+. An o$$er beco%es ine$$ective u.on t/e deat/, civil interdiction, insanity, or insolvency o$ eit/er .arty be$ore acce.tance is conveyed. n!Art. 1+*-. :/en t/e o$$erer /as allo(ed t/e o$$eree a certain .eriod to acce.t, t/e o$$er %ay be (it/dra(n at any ti%e be$oreacce.tance by co%%unicating suc/ (it/dra(al, e3ce.t (/en t/e o.tion is $ounded u.on a consideration, as so%et/ing .aidor .ro%ised. n!Art. 1+*5. o contract %ay be entered into u.on $uture in/eritance e3ce.t in cases e3.ressly aut/ori@ed by la(.All services (/ic/ are not contrary to la(, %orals, good custo%s, .ublic order or .ublic .olicy %ay li5e(ise be t/e object o$ acontract. 1*"1a!Art. 1+-1. 9%.ossible t/ings or services cannot be t/e object o$ contracts. 1*"*!Art. 1+-2. T/e object o$ every contract %ust be deter%inate as to its 5ind. T/e $act t/at t/e 6uantity is not deter%inate s/all not be an obstacle to t/e e3istence o$ t/e contract, .rovided it is .ossible to deter%ine t/e sa%e, (it/out t/e need o$ a ne( contract bet(een t/e .arties. 1*"+! =ECT9#> +. ? Cause o$ Contracts Art. 1+50. 9n onerous contracts t/e cause is understood to be, $or eac/ contracting .arty, t/e .restation or .ro%ise o$ a t/ingor service by t/e ot/er) in re%uneratory ones, t/e service or bene$it (/ic/ is re%unerated) and in contracts o$ .ure bene$icence, t/e %ere liberality o$ t/e bene$actor. 1*"-!Art. 1+51. T/e .articular %otives o$ t/e .arties in entering into a contract are di$$erent $ro% t/e cause t/ereo$. n!Art. 1+5*. Contracts (it/out cause, or (it/ unla($ul cause, .roduce no e$$ect (/atever. T/e cause is unla($ul i$ it is contraryto la(, %orals, good custo%s, .ublic order or .ublic .olicy. 1*"5a!Art. 1+5+. T/e state%ent o$ a $alse cause in contracts s/all render t/e% void, i$ it s/ould not be .roved t/at t/ey (ere $ounded u.on anot/er cause (/ic/ is true and la($ul. 1*"6!Art. 1+5-. Alt/oug/ t/e cause is not stated in t/e contract, it is .resu%ed t/at it e3ists and is la($ul, unless t/e debtor .rovest/e contrary. 1*""!Art. 1+55. E3ce.t in cases s.eci$ied by la(, lesion or inade6uacy o$ cause s/all not invalidate a contract, unless t/ere /as been $raud, %ista5e or undue in$luence. n! CHAPTER + - FOR OF CONTRACTS Art. 1+56. Contracts s/all be obligatory, in (/atever $or% t/ey %ay /ave been entered into, .rovided all t/e essential re6uisites $or t/eir validity are .resent. Ho(ever, (/en t/e la( re6uires t/at a contract be in so%e $or% in order t/at it %ay be valid or en$orceable, or t/at a contract be .roved in a certain (ay, t/at re6uire%ent is absolute and indis.ensable. 9n suc/cases, t/e rig/t o$ t/e .arties stated in t/e $ollo(ing article cannot be e3ercised. 1*"1a!Art. 1+5". 9$ t/e la( re6uires a docu%ent or ot/er s.ecial $or%, as in t/e acts and contracts enu%erated in t/e $ollo(ing article, t/e contracting .arties %ay co%.el eac/ ot/er to observe t/at $or%, once t/e contract /as been .er$ected. T/is rig/t %ay be e3ercised si%ultaneously (it/ t/e action u.on t/e contract. 1*"2a!Art. 1+51. T/e $ollo(ing %ust a..ear in a .ublic docu%ent&1! Acts and contracts (/ic/ /ave $or t/eir object t/e creation, trans%ission, %odi$ication or e3tinguis/%ent o$ real rig/ts over i%%ovable .ro.erty) sales o$ real .ro.erty or o$ an interest t/erein a governed by Articles 1-0+, >o. *, and 1-05)*! T/e cession, re.udiation or renunciation o$ /ereditary rig/ts or o$ t/ose o$ t/e conjugal .artners/i. o$ gains)+! T/e .o(er to ad%inister .ro.erty, or any ot/er .o(er (/ic/ /as $or its object an act a..earing or (/ic/ s/ould a..ear in a .ublic docu%ent, or s/ould .rejudice a t/ird .erson)-! T/e cession o$ actions or rig/ts .roceeding $ro% an act a..earing in a .ublic docu%ent.All ot/er contracts (/ere t/e a%ount involved e3ceeds $ive /undred .esos %ust a..ear in (riting, even a .rivate one. 4ut sales o$ goods, c/attels or t/ings in action are governed by Articles, 1-0+, >o. * and 1-05. 1*10a! CHAPTER - - REFORATION OF INSTRUENTS "n# Art. 1+52. :/en, t/ere /aving been a %eeting o$ t/e %inds o$ t/e .arties to a contract, t/eir true intention is not e3.ressed in t/e instru%ent .ur.orting to e%body t/e agree%ent, by reason o$ %ista5e, $raud, ine6uitable conduct or accident, one o$ t/e .arties %ay as5 $or t/e re$or%ation o$ t/e instru%ent to t/e end t/at suc/ true intention %ay be e3.ressed.9$ %ista5e, $raud, ine6uitable conduct, or accident /as .revented a %eeting o$ t/e %inds o$ t/e .arties, t/e .ro.er re%edy is not re$or%ation o$ t/e instru%ent but annul%ent o$ t/e contract.Art. 1+60. T/e .rinci.les o$ t/e general la( on t/e re$or%ation o$ instru%ents are /ereby ado.ted inso$ar as t/ey are not in con$lict (it/ t/e .rovisions o$ t/is Code.Art. 1+61. :/en a %utual %ista5e o$ t/e .arties causes t/e $ailure o$ t/e instru%ent to disclose t/eir real agree%ent, said instru%ent %ay be re$or%ed.Art. 1+6*. 9$ one .arty (as %ista5en and t/e ot/er acted $raudulently or ine6uitably in suc/ a (ay t/at t/e instru%ent does not s/o( t/eir true intention, t/e $or%er %ay as5 $or t/e re$or%ation o$ t/e instru%ent.Art. 1+6+. :/en one .arty (as %ista5en and t/e ot/er 5ne( or believed t/at t/e instru%ent did not state t/eir real agree%ent, but concealed t/at $act $ro% t/e $or%er, t/e instru%ent %ay be re$or%ed.Art. 1+6-. :/en t/roug/ t/e ignorance, lac5 o$ s5ill, negligence or bad $ait/ on t/e .art o$ t/e .erson dra$ting t/e instru%ent or o$ t/e cler5 or ty.ist, t/e instru%ent does not e3.ress t/e true intention o$ t/e .arties, t/e courts %ay order t/at t/e instru%ent be re$or%ed.Art. 1+65. 9$ t(o .arties agree u.on t/e %ortgage or .ledge o$ real or .ersonal .ro.erty, but t/e instru%ent states t/at t/e .ro.erty is sold absolutely or (it/ a rig/t o$ re.urc/ase, re$or%ation o$ t/e instru%ent is .ro.er.Art. 1+66. T/ere s/all be no re$or%ation in t/e $ollo(ing cases&1! =i%.le donations inter vivos (/erein no condition is i%.osed)*! :ills)+! :/en t/e real agree%ent is void.Art. 1+6". :/en one o$ t/e .arties /as broug/t an action to en$orce t/e instru%ent, /e cannot subse6uently as5 $or its re$or%ation.Art. 1+61. Re$or%ation %ay be ordered at t/e instance o$ eit/er .arty or /is successors in interest, i$ t/e %ista5e (as %utual) ot/er(ise, u.on .etition o$ t/e injured .arty, or /is /eirs and assigns.Art. 1+62. T/e .rocedure $or t/e re$or%ation o$ instru%ent s/all be governed by rules o$ court to be .ro%ulgated by t/e =u.re%e Court. CHAPTER 5 - INTERPRETATION OF CONTRACTS Art. 1+"0. 9$ t/e ter%s o$ a contract are clear and leave no doubt u.on t/e intention o$ t/e contracting .arties, t/e literal %eaning o$ its sti.ulations s/all control.9$ t/e (ords a..ear to be contrary to t/e evident intention o$ t/e .arties, t/e latter s/all .revail over t/e $or%er. 1*11!Art. 1+"1. 9n order to judge t/e intention o$ t/e contracting .arties, t/eir conte%.oraneous and subse6uent acts s/all be .rinci.ally considered. 1*1*!Art. 1+"*. Ho(ever general t/e ter%s o$ a contract %ay be, t/ey s/all not be understood to co%.re/end t/ings t/at are distinct and cases t/at are di$$erent $ro% t/ose u.on (/ic/ t/e .arties intended to agree. 1*1+!Art. 1+"+. 9$ so%e sti.ulation o$ any contract s/ould ad%it o$ several %eanings, it s/all be understood as bearing t/at i%.ort (/ic/ is %ost ade6uate to render it e$$ectual. 1*1-!Art. 1+"-. T/e various sti.ulations o$ a contract s/all be inter.reted toget/er, attributing to t/e doubt$ul ones t/at sense (/ic/ %ay result $ro% all o$ t/e% ta5en jointly. 1*15!Art. 1+"5. :ords (/ic/ %ay /ave di$$erent signi$ications s/all be understood in t/at (/ic/ is %ost in 5ee.ing (it/ t/e nature and object o$ t/e contract. 1*16!Art. 1+"6. T/e usage or custo% o$ t/e .lace s/all be borne in %ind in t/e inter.retation o$ t/e a%biguities o$ a contract, and s/all $ill t/e o%ission o$ sti.ulations (/ic/ are ordinarily establis/ed. 1*1"!Art. 1+"". T/e inter.retation o$ obscure (ords or sti.ulations in a contract s/all not $avor t/e .arty (/o caused t/e obscurity.1*11!Art. 1+"1. :/en it is absolutely i%.ossible to settle doubts by t/e rules establis/ed in t/e .receding articles, and t/e doubts re$er to incidental circu%stances o$ a gratuitous contract, t/e least trans%ission o$ rig/ts and interests s/all .revail. 9$ t/e contract is onerous, t/e doubt s/all be settled in $avor o$ t/e greatest reci.rocity o$ interests.9$ t/e doubts are cast u.on t/e .rinci.al object o$ t/e contract in suc/ a (ay t/at it cannot be 5no(n (/at %ay /ave been t/e intention or (ill o$ t/e .arties, t/e contract s/all be null and void. 1*12!Art. 1+"2. T/e .rinci.les o$ inter.retation stated in Rule 1*+ o$ t/e Rules o$ Court s/all li5e(ise be observed in t/e construction o$ contracts. n! CHAPTER 6 - RESCISSIBLE CONTRACTS Art. 1+10. Contracts validly agreed u.on %ay be rescinded in t/e cases establis/ed by la(. 1*20!Art. 1+11. T/e $ollo(ing contracts are rescissible&1! T/ose (/ic/ are entered into by guardians (/enever t/e (ards (/o% t/ey re.resent su$$er lesion by %ore t/an one-$ourt/ o$ t/e value o$ t/e t/ings (/ic/ are t/e object t/ereo$)*! T/ose agreed u.on in re.resentation o$ absentees, i$ t/e latter su$$er t/e lesion stated in t/e .receding nu%ber)+! T/ose underta5en in $raud o$ creditors (/en t/e latter cannot in any ot/er %anner collect t/e clai%s due t/e%)-! T/ose (/ic/ re$er to t/ings under litigation i$ t/ey /ave been entered into by t/e de$endant (it/out t/e 5no(ledge and a..roval o$ t/e litigants or o$ co%.etent judicial aut/ority)5! All ot/er contracts s.ecially declared by la( to be subject to rescission. 1*21a!Art. 1+1*. Pay%ents %ade in a state o$ insolvency $or obligations to (/ose $ul$ill%ent t/e debtor could not be co%.elled at t/e ti%e t/ey (ere e$$ected, are also rescissible. 1*2*!Art. 1+1+. T/e action $or rescission is subsidiary) it cannot be instituted e3ce.t (/en t/e .arty su$$ering da%age /as no ot/er legal %eans to obtain re.aration $or t/e sa%e. 1*2-!Lawcenter.phArt. 1+1-. Rescission s/all be only to t/e e3tent necessary to cover t/e da%ages caused. n!Art. 1+15. Rescission creates t/e obligation to return t/e t/ings (/ic/ (ere t/e object o$ t/e contract, toget/er (it/ t/eir $ruits, and t/e .rice (it/ its interest) conse6uently, it can be carried out only (/en /e (/o de%ands rescission can return (/atever /e %ay be obliged to restore.>eit/er s/all rescission ta5e .lace (/en t/e t/ings (/ic/ are t/e object o$ t/e contract are legally in t/e .ossession o$ t/ird .ersons (/o did not act in bad $ait/.9n t/is case, inde%nity $or da%ages %ay be de%anded $ro% t/e .erson causing t/e loss. 1*25!Art. 1+16. Rescission re$erred to in >os. 1 and * o$ Article 1+11 s/all not ta5e .lace (it/ res.ect to contracts a..roved by t/e courts. 1*26a!Art. 1+1". All contracts by virtue o$ (/ic/ t/e debtor alienates .ro.erty by gratuitous title are .resu%ed to /ave been enteredinto in $raud o$ creditors, (/en t/e donor did not reserve su$$icient .ro.erty to .ay all debts contracted be$ore t/e donation.Lawcenter.phAlienations by onerous title are also .resu%ed $raudulent (/en %ade by .ersons against (/o% so%e judg%ent /as been issued. T/e decision or attac/%ent need not re$er to t/e .ro.erty alienated, and need not /ave been obtained by t/e .arty see5ing t/e rescission.9n addition to t/ese .resu%.tions, t/e design to de$raud creditors %ay be .roved in any ot/er %anner recogni@ed by t/e la(o$ evidence. 1*2"a!Art. 1+11. :/oever ac6uires in bad $ait/ t/e t/ings alienated in $raud o$ creditors, s/all inde%ni$y t/e latter $or da%ages su$$ered by t/e% on account o$ t/e alienation, (/enever, due to any cause, it s/ould be i%.ossible $or /i% to return t/e%.9$ t/ere are t(o or %ore alienations, t/e $irst ac6uirer s/all be liable $irst, and so on successively. 1*21a!Art. 1+12. T/e action to clai% rescission %ust be co%%enced (it/in $our years.;or .ersons under guardians/i. and $or absentees, t/e .eriod o$ $our years s/all not begin until t/e ter%ination o$ t/e $or%erBs inca.acity, or until t/e do%icile o$ t/e latter is 5no(n. 1*22! CHAPTER " - VOIDABLE CONTRACTS Art. 1+20. T/e $ollo(ing contracts are voidable or annullable, even t/oug/ t/ere %ay /ave been no da%age to t/e contracting .arties&1! T/ose (/ere one o$ t/e .arties is inca.able o$ giving consent to a contract)*! T/ose (/ere t/e consent is vitiated by %ista5e, violence, inti%idation, undue in$luence or $raud.T/ese contracts are binding, unless t/ey are annulled by a .ro.er action in court. T/ey are susce.tible o$ rati$ication. n!Art. 1+21. T/e action $or annul%ent s/all be broug/t (it/in $our years.T/is .eriod s/all begin&9n cases o$ inti%idation, violence or undue in$luence, $ro% t/e ti%e t/e de$ect o$ t/e consent ceases.9n case o$ %ista5e or $raud, $ro% t/e ti%e o$ t/e discovery o$ t/e sa%e.And (/en t/e action re$ers to contracts entered into by %inors or ot/er inca.acitated .ersons, $ro% t/e ti%e t/e guardians/i. ceases. 1+01a!Art. 1+2*. Rati$ication e3tinguis/es t/e action to annul a voidable contract. 1+02a!Art. 1+2+. Rati$ication %ay be e$$ected e3.ressly or tacitly. 9t is understood t/at t/ere is a tacit rati$ication i$, (it/ 5no(ledge o$ t/e reason (/ic/ renders t/e contract voidable and suc/ reason /aving ceased, t/e .erson (/o /as a rig/t to invo5e it s/ould e3ecute an act (/ic/ necessarily i%.lies an intention to (aive /is rig/t. 1+11a!Art. 1+2-. Rati$ication %ay be e$$ected by t/e guardian o$ t/e inca.acitated .erson. n!Art. 1+25. Rati$ication does not re6uire t/e con$or%ity o$ t/e contracting .arty (/o /as no rig/t to bring t/e action $or annul%ent. 1+1*!Art. 1+26. Rati$ication cleanses t/e contract $ro% all its de$ects $ro% t/e %o%ent it (as constituted. 1+1+!Art. 1+2". T/e action $or t/e annul%ent o$ contracts %ay be instituted by all (/o are t/ereby obliged .rinci.ally or subsidiarily. Ho(ever, .ersons (/o are ca.able cannot allege t/e inca.acity o$ t/ose (it/ (/o% t/ey contracted) nor can t/ose (/o e3erted inti%idation, violence, or undue in$luence, or e%.loyed $raud, or caused %ista5e base t/eir action u.on t/ese $la(s o$ t/e contract. 1+0*a!Art. 1+21. An obligation /aving been annulled, t/e contracting .arties s/all restore to eac/ ot/er t/e t/ings (/ic/ /ave been t/e subject %atter o$ t/e contract, (it/ t/eir $ruits, and t/e .rice (it/ its interest, e3ce.t in cases .rovided by la(.9n obligations to render service, t/e value t/ereo$ s/all be t/e basis $or da%ages. 1+0+a!Art. 1+22. :/en t/e de$ect o$ t/e contract consists in t/e inca.acity o$ one o$ t/e .arties, t/e inca.acitated .erson is not obliged to %a5e any restitution e3ce.t inso$ar as /e /as been bene$ited by t/e t/ing or .rice received by /i%. 1+0-!Art. 1-00. :/enever t/e .erson obliged by t/e decree o$ annul%ent to return t/e t/ing can not do so because it /as been lost t/roug/ /is $ault, /e s/all return t/e $ruits received and t/e value o$ t/e t/ing at t/e ti%e o$ t/e loss, (it/ interest $ro% t/e sa%e date. 1+0"a!Art. 1-01. T/e action $or annul%ent o$ contracts s/all be e3tinguis/ed (/en t/e t/ing (/ic/ is t/e object t/ereo$ is lost t/roug/ t/e $raud or $ault o$ t/e .erson (/o /as a rig/t to institute t/e .roceedings.9$ t/e rig/t o$ action is based u.on t/e inca.acity o$ any one o$ t/e contracting .arties, t/e loss o$ t/e t/ing s/all not be an obstacle to t/e success o$ t/e action, unless said loss too5 .lace t/roug/ t/e $raud or $ault o$ t/e .lainti$$. 1+1-a!Art. 1-0*. As long as one o$ t/e contracting .arties does not restore (/at in virtue o$ t/e decree o$ annul%ent /e is bound toreturn, t/e ot/er cannot be co%.elled to co%.ly (it/ (/at is incu%bent u.on /i%. 1+01! CHAPTER 1 - UNENFORCEABLE CONTRACTS "n# Art. 1-0+. T/e $ollo(ing contracts are unen$orceable, unless t/ey are rati$ied&1! T/ose entered into in t/e na%e o$ anot/er .erson by one (/o /as been given no aut/ority or legal re.resentation, or (/o /as acted beyond /is .o(ers)*! T/ose t/at do not co%.ly (it/ t/e =tatute o$ ;rauds as set $ort/ in t/is nu%ber. 9n t/e $ollo(ing cases an agree%ent /erea$ter %ade s/all be unen$orceable by action, unless t/e sa%e, or so%e note or %e%orandu%, t/ereo$, be in (riting, andsubscribed by t/e .arty c/arged, or by /is agent) evidence, t/ere$ore, o$ t/e agree%ent cannot be received (it/out t/e (riting, or a secondary evidence o$ its contents&a! An agree%ent t/at by its ter%s is not to be .er$or%ed (it/in a year $ro% t/e %a5ing t/ereo$)b! A s.ecial .ro%ise to ans(er $or t/e debt, de$ault, or %iscarriage o$ anot/er)c! An agree%ent %ade in consideration o$ %arriage, ot/er t/an a %utual .ro%ise to %arry)d! An agree%ent $or t/e sale o$ goods, c/attels or t/ings in action, at a .rice not less t/an $ive /undred .esos, unless t/e buyer acce.t and receive .art o$ suc/ goods and c/attels, or t/e evidences, or so%e o$ t/e%, o$ suc/ t/ings in action or .ayat t/e ti%e so%e .art o$ t/e .urc/ase %oney) but (/en a sale is %ade by auction and entry is %ade by t/e auctioneer in /issales boo5, at t/e ti%e o$ t/e sale, o$ t/e a%ount and 5ind o$ .ro.erty sold, ter%s o$ sale, .rice, na%es o$ t/e .urc/asers and .erson on (/ose account t/e sale is %ade, it is a su$$icient %e%orandu%)e! An agree%ent o$ t/e leasing $or a longer .eriod t/an one year, or $or t/e sale o$ real .ro.erty or o$ an interest t/erein)$! A re.resentation as to t/e credit o$ a t/ird .erson.+! T/ose (/ere bot/ .arties are inca.able o$ giving consent to a contract.Art. 1-0-. eit/er can t/e rig/t to set u. t/e de$ense o$ illegality be (aived.Art. 1-10. T/e action or de$ense $or t/e declaration o$ t/e ine3istence o$ a contract does not .rescribe. Art. 1-11. :/en t/e nullity .roceeds $ro% t/e illegality o$ t/e cause or object o$ t/e contract, and t/e act constitutes a cri%inal o$$ense, bot/ .arties being in .ari delicto, t/ey s/all /ave no action against eac/ ot/er, and bot/ s/all be .rosecuted. Aoreover, t/e .rovisions o$ t/e Penal Code relative to t/e dis.osal o$ e$$ects or instru%ents o$ a cri%e s/all be a..licable to t/e t/ings or t/e .rice o$ t/e contract.T/is rule s/all be a..licable (/en only one o$ t/e .arties is guilty) but t/e innocent one %ay clai% (/at /e /as given, and s/all not be bound to co%.ly (it/ /is .ro%ise. 1+05!Art. 1-1*. 9$ t/e act in (/ic/ t/e unla($ul or $orbidden cause consists does not constitute a cri%inal o$$ense, t/e $ollo(ing rules s/all be observed&1! :/en t/e $ault is on t/e .art o$ bot/ contracting .arties, neit/er %ay recover (/at /e /as given by virtue o$ t/e contract, or de%and t/e .er$or%ance o$ t/e ot/erBs underta5ing)*! :/en only one o$ t/e contracting .arties is at $ault, /e cannot recover (/at /e /as given by reason o$ t/e contract, or as5 $or t/e $ul$ill%ent o$ (/at /as been .ro%ised /i%. T/e ot/er, (/o is not at $ault, %ay de%and t/e return o$ (/at /e /as given (it/out any obligation to co%.ly /is .ro%ise. 1+06!Art. 1-1+. 9nterest .aid in e3cess o$ t/e interest allo(ed by t/e usury la(s %ay be recovered by t/e debtor, (it/ interest t/ereon $ro% t/e date o$ t/e .ay%ent.Art. 1-1-. :/en %oney is .aid or .ro.erty delivered $or an illegal .ur.ose, t/e contract %ay be re.udiated by one o$ t/e .arties be$ore t/e .ur.ose /as been acco%.lis/ed, or be$ore any da%age /as been caused to a t/ird .erson. 9n suc/ case, t/e courts %ay, i$ t/e .ublic interest (ill t/us be subserved, allo( t/e .arty re.udiating t/e contract to recover t/e %oney or .ro.erty.Art. 1-15. :/ere one o$ t/e .arties to an illegal contract is inca.able o$ giving consent, t/e courts %ay, i$ t/e interest o$ justice so de%ands allo( recovery o$ %oney or .ro.erty delivered by t/e inca.acitated .erson.Art. 1-16. :/en t/e agree%ent is not illegal .er se but is %erely .ro/ibited, and t/e .ro/ibition by t/e la( is designated $or t/e .rotection o$ t/e .lainti$$, /e %ay, i$ .ublic .olicy is t/ereby en/anced, recover (/at /e /as .aid or delivered.Art. 1-1". :/en t/e .rice o$ any article or co%%odity is deter%ined by statute, or by aut/ority o$ la(, any .erson .aying anya%ount in e3cess o$ t/e %a3i%u% .rice allo(ed %ay recover suc/ e3cess.Art. 1-11. :/en t/e la( $i3es, or aut/ori@es t/e $i3ing o$ t/e %a3i%u% nu%ber o$ /ours o$ labor, and a contract is entered into (/ereby a laborer underta5es to (or5 longer t/an t/e %a3i%u% t/us $i3ed, /e %ay de%and additional co%.ensation $orservice rendered beyond t/e ti%e li%it.Art. 1-12. :/en t/e la( sets, or aut/ori@es t/e setting o$ a %ini%u% (age $or laborers, and a contract is agreed u.on by (/ic/ a laborer acce.ts a lo(er (age, /e s/all be entitled to recover t/e de$iciency.Art. 1-*0. 9n case o$ a divisible contract, i$ t/e illegal ter%s can be se.arated $ro% t/e legal ones, t/e latter %ay be en$orced.Art. 1-*1. T/e de$ense o$ illegality o$ contract is not available to t/ird .ersons (/ose interests are not directly a$$ected.Art. 1-**. A contract (/ic/ is t/e direct result o$ a .revious illegal contract, is also void and ine3istent. Title IIINATURAL OBLIGATIONSArt. 1-*+. #bligations are civil or natural. Civil obligations give a rig/t o$ action to co%.el t/eir .er$or%ance. >atural obligations, not being based on .ositive la( but on e6uity and natural la(, do not grant a rig/t o$ action to en$orce t/eir .er$or%ance, but a$ter voluntary $ul$ill%ent by t/e obligor, t/ey aut/ori@e t/e retention o$ (/at /as been delivered or rendered by reason t/ereo$. =o%e natural obligations are set $ort/ in t/e $ollo(ing articles.Art. 1-*-. :/en a rig/t to sue u.on a civil obligation /as la.sed by e3tinctive .rescri.tion, t/e obligor (/o voluntarily .er$or%s t/e contract cannot recover (/at /e /as delivered or t/e value o$ t/e service /e /as rendered.Art. 1-*5. :/en (it/out t/e 5no(ledge or against t/e (ill o$ t/e debtor, a t/ird .erson .ays a debt (/ic/ t/e obligor is not legally bound to .ay because t/e action t/ereon /as .rescribed, but t/e debtor later voluntarily rei%burses t/e t/ird .erson, t/e obligor cannot recover (/at /e /as .aid.Art. 1-*6. :/en a %inor bet(een eig/teen and t(enty-one years o$ age (/o /as entered into a contract (it/out t/e consento$ t/e .arent or guardian, a$ter t/e annul%ent o$ t/e contract voluntarily returns t/e (/ole t/ing or .rice received, not(it/standing t/e $act t/e /e /as not been bene$ited t/ereby, t/ere is no rig/t to de%and t/e t/ing or .rice t/us returned.Art. 1-*". :/en a %inor bet(een eig/teen and t(enty-one years o$ age, (/o /as entered into a contract (it/out t/e consent o$ t/e .arent or guardian, voluntarily .ays a su% o$ %oney or delivers a $ungible t/ing in $ul$ill%ent o$ t/e obligation, t/ere s/all be no rig/t to recover t/e sa%e $ro% t/e obligee (/o /as s.ent or consu%ed it in good $ait/. 1160A!Art. 1-*1. :/en, a$ter an action to en$orce a civil obligation /as $ailed t/e de$endant voluntarily .er$or%s t/e obligation, /e cannot de%and t/e return o$ (/at /e /as delivered or t/e .ay%ent o$ t/e value o$ t/e service /e /as rendered.Art. 1-*2. :/en a testate or intestate /eir voluntarily .ays a debt o$ t/e decedent e3ceeding t/e value o$ t/e .ro.erty (/ic/ /e received by (ill or by t/e la( o$ intestacy $ro% t/e estate o$ t/e deceased, t/e .ay%ent is valid and cannot be rescinded by t/e .ayer.Art. 1-+0. :/en a (ill is declared void because it /as not been e3ecuted in accordance (it/ t/e $or%alities re6uired by la(, but one o$ t/e intestate /eirs, a$ter t/e settle%ent o$ t/e debts o$ t/e deceased, .ays a legacy in co%.liance (it/ a clause int/e de$ective (ill, t/e .ay%ent is e$$ective and irrevocable. Title IVESTOPPEL (n) Art. 1-+1. T/roug/ esto..el an ad%ission or re.resentation is rendered conclusive u.on t/e .erson %a5ing it, and cannot be denied or dis.roved as against t/e .erson relying t/ereon.Art. 1-+*. T/e .rinci.les o$ esto..el are /ereby ado.ted inso$ar as t/ey are not in con$lict (it/ t/e .rovisions o$ t/is Code, t/e Code o$ Co%%erce, t/e Rules o$ Court and s.ecial la(s.Art. 1-++. Esto..el %ay be in .ais or by deed.Art. 1-+-. :/en a .erson (/o is not t/e o(ner o$ a t/ing sells or alienates and delivers it, and later t/e seller or grantor ac6uires title t/ereto, suc/ title .asses by o.eration o$ la( to t/e buyer or grantee.Art. 1-+5. 9$ a .erson in re.resentation o$ anot/er sells or alienates a t/ing, t/e $or%er cannot subse6uently set u. /is o(n title as against t/e buyer or grantee.Art. 1-+6. A lessee or a bailee is esto..ed $ro% asserting title to t/e t/ing leased or received, as against t/e lessor or bailor.Art. 1-+". :/en in a contract bet(een t/ird .ersons concerning i%%ovable .ro.erty, one o$ t/e% is %isled by a .erson (it/ res.ect to t/e o(ners/i. or real rig/t over t/e real estate, t/e latter is .recluded $ro% asserting /is legal title or interest t/erein, .rovided all t/ese re6uisites are .resent&1! T/ere %ust be $raudulent re.resentation or (rong$ul conceal%ent o$ $acts 5no(n to t/e .arty esto..ed)*! T/e .arty .recluded %ust intend t/at t/e ot/er s/ould act u.on t/e $acts as %isre.resented)+! T/e .arty %isled %ust /ave been una(are o$ t/e true $acts) and-! T/e .arty de$rauded %ust /ave acted in accordance (it/ t/e %isre.resentation.Art. 1-+1. #ne (/o /as allo(ed anot/er to assu%e a..arent o(ners/i. o$ .ersonal .ro.erty $or t/e .ur.ose o$ %a5ing any trans$er o$ it, cannot, i$ /e received t/e su% $or (/ic/ a .ledge /as been constituted, set u. /is o(n title to de$eat t/e .ledgeo$ t/e .ro.erty, %ade by t/e ot/er to a .ledgee (/o received t/e sa%e in good $ait/ and $or value.Art. 1-+2. Esto..el is e$$ective only as bet(een t/e .arties t/ereto or t/eir successors in interest. Title VTRUSTS (n) CHAPTER 1 - GENERAL PROVISIONS Art. 1--0. A .erson (/o establis/es a trust is called t/e trustor) one in (/o% con$idence is re.osed as regards .ro.erty $or t/e bene$it o$ anot/er .erson is 5no(n as t/e trustee) and t/e .erson $or (/ose bene$it t/e trust /as been created is re$erred to as t/e bene$iciary.Art. 1--1. Trusts are eit/er e3.ress or i%.lied. E3.ress trusts are created by t/e intention o$ t/e trustor or o$ t/e .arties. 9%.lied trusts co%e into being by o.eration o$ la(.Art. 1--*. T/e .rinci.les o$ t/e general la( o$ trusts, inso$ar as t/ey are not in con$lict (it/ t/is Code, t/e Code o$ Co%%erce, t/e Rules o$ Court and s.ecial la(s are /ereby ado.ted. CHAPTER * - EXPRESS TRUSTS Art. 1--+. >o e3.ress trusts concerning an i%%ovable or any interest t/erein %ay be .roved by .arol evidence.Art. 1---. >o .articular (ords are re6uired $or t/e creation o$ an e3.ress trust, it being su$$icient t/at a trust is clearly intended.Art. 1--5. >o trust s/all $ail because t/e trustee a..ointed declines t/e designation, unless t/e contrary s/ould a..ear in t/e instru%ent constituting t/e trust.Art. 1--6. Acce.tance by t/e bene$iciary is necessary. >evert/eless, i$ t/e trust i%.oses no onerous condition u.on t/e bene$iciary, /is acce.tance s/all be .resu%ed, i$ t/ere is no .roo$ to t/e contrary. CHAPTER + - IPLIED TRUSTS Art. 1--". T/e enu%eration o$ t/e $ollo(ing cases o$ i%.lied trust does not e3clude ot/ers establis/ed by t/e general la( o$ trust, but t/e li%itation laid do(n in Article 1--* s/all be a..licable.Art. 1--1. T/ere is an i%.lied trust (/en .ro.erty is sold, and t/e legal estate is granted to one .arty but t/e .rice is .aid by anot/er $or t/e .ur.ose o$ /aving t/e bene$icial interest o$ t/e .ro.erty. T/e $or%er is t/e trustee, (/ile t/e latter is t/e bene$iciary. Ho(ever, i$ t/e .erson to (/o% t/e title is conveyed is a c/ild, legiti%ate or illegiti%ate, o$ t/e one .aying t/e .rice o$ t/e sale, no trust is i%.lied by la(, it being dis.utably .resu%ed t/at t/ere is a gi$t in $avor o$ t/e c/ild.Art. 1--2. T/ere is also an i%.lied trust (/en a donation is %ade to a .erson but it a..ears t/at alt/oug/ t/e legal estate is trans%itted to t/e donee, /e nevert/eless is eit/er to /ave no bene$icial interest or only a .art t/ereo$.Art. 1-50. 9$ t/e .rice o$ a sale o$ .ro.erty is loaned or .aid by one .erson $or t/e bene$it o$ anot/er and t/e conveyance is %ade to t/e lender or .ayor to secure t/e .ay%ent o$ t/e debt, a trust arises by o.eration o$ la( in $avor o$ t/e .erson to (/o% t/e %oney is loaned or $or (/o% its is .aid. T/e latter %ay redee% t/e .ro.erty and co%.el a conveyance t/ereo$ to /i%.Art. 1-51. :/en land .asses by succession to any .erson and /e causes t/e legal title to be .ut in t/e na%e o$ anot/er, a trust is establis/ed by i%.lication o$ la( $or t/e bene$it o$ t/e true o(ner.Art. 1-5*. 9$ t(o or %ore .ersons agree to .urc/ase .ro.erty and by co%%on consent t/e legal title is ta5en in t/e na%e o$ one o$ t/e% $or t/e bene$it o$ all, a trust is created by $orce o$ la( in $avor o$ t/e ot/ers in .ro.ortion to t/e interest o$ eac/.Art. 1-5+. :/en .ro.erty is conveyed to a .erson in reliance u.on /is declared intention to /old it $or, or trans$er it to anot/er or t/e grantor, t/ere is an i%.lied trust in $avor o$ t/e .erson (/ose bene$it is conte%.lated.Art. 1-5-. 9$ an absolute conveyance o$ .ro.erty is %ade in order to secure t/e .er$or%ance o$ an obligation o$ t/e grantor to(ard t/e grantee, a trust by virtue o$ la( is establis/ed. 9$ t/e $ul$ill%ent o$ t/e obligation is o$$ered by t/e grantor (/en it beco%es due, /e %ay de%and t/e reconveyance o$ t/e .ro.erty to /i%.Art. 1-55. :/en any trustee, guardian or ot/er .erson /olding a $iduciary relations/i. uses trust $unds $or t/e .urc/ase o$ .ro.erty and causes t/e conveyance to be %ade to /i% or to a t/ird .erson, a trust is establis/ed by o.eration o$ la( in $avor o$ t/e .erson to (/o% t/e $unds belong.Art. 1-56. 9$ .ro.erty is ac6uired t/roug/ %ista5e or $raud, t/e .erson obtaining it is, by $orce o$ la(, considered a trustee o$ an i%.lied trust $or t/e bene$it o$ t/e .erson $ro% (/o% t/e .ro.erty co%es.Art. 1-5". An i%.lied trust %ay be .roved by oral evidence. Title VISALES CHAPTER 1 - NATURE AND FOR OF THE CONTRACT Art. 1-51. 4y t/e contract o$ sale one o$ t/e contracting .arties obligates /i%sel$ to trans$er t/e o(ners/i. and to deliver a deter%inate t/ing, and t/e ot/er to .ay t/ere$or a .rice certain in %oney or its e6uivalent.A contract o$ sale %ay be absolute or conditional. 1--5a!Art. 1-52. T/e t/ing %ust be licit and t/e vendor %ust /ave a rig/t to trans$er t/e o(ners/i. t/ereo$ at t/e ti%e it is delivered. n!Art. 1-60. A t/ing is deter%inate (/en it is .articularly designated or ./ysical segregated $ro% all ot/er o$ t/e sa%e class.T/e re6uisite t/at a t/ing be deter%inate is satis$ied i$ at t/e ti%e t/e contract is entered into, t/e t/ing is ca.able o$ being %ade deter%inate (it/out t/e necessity o$ a ne( or $urt/er agree%ent bet(een t/e .arties. n!Art. 1-61. T/ings /aving a .otential e3istence %ay be t/e object o$ t/e contract o$ sale.T/e e$$icacy o$ t/e sale o$ a %ere /o.e or e3.ectancy is dee%ed subject to t/e condition t/at t/e t/ing (ill co%e into e3istence.T/e sale o$ a vain /o.e or e3.ectancy is void. n!Art. 1-6*. T/e goods (/ic/ $or% t/e subject o$ a contract o$ sale %ay be eit/er e3isting goods, o(ned or .ossessed by t/e seller, or goods to be %anu$actured, raised, or ac6uired by t/e seller a$ter t/e .er$ection o$ t/e contract o$ sale, in t/is Title called F$uture goods.GT/ere %ay be a contract o$ sale o$ goods, (/ose ac6uisition by t/e seller de.ends u.on a contingency (/ic/ %ay or %ay not /a..en. n!Art. 1-6+. T/e sole o(ner o$ a t/ing %ay sell an undivided interest t/erein. n!Art. 1-6-. 9n t/e case o$ $ungible goods, t/ere %ay be a sale o$ an undivided s/are o$ a s.eci$ic %ass, t/oug/ t/e seller .ur.orts to sell and t/e buyer to buy a de$inite nu%ber, (eig/t or %easure o$ t/e goods in t/e %ass, and t/oug/ t/e nu%ber,(eig/t or %easure o$ t/e goods in t/e %ass is undeter%ined. 4y suc/ a sale t/e buyer beco%es o(ner in co%%on o$ suc/ a s/are o$ t/e %ass as t/e nu%ber, (eig/t or %easure boug/t bears to t/e nu%ber, (eig/t or %easure o$ t/e %ass. 9$ t/e %ass contains less t/an t/e nu%ber, (eig/t or %easure boug/t, t/e buyer beco%es t/e o(ner o$ t/e (/ole %ass and t/e seller is bound to %a5e good t/e de$iciency $ro% goods o$ t/e sa%e 5ind and 6uality, unless a contrary intent a..ears. n!Art. 1-65. T/ings subject to a resolutory condition %ay be t/e object o$ t/e contract o$ sale. n!Art. 1-66. 9n construing a contract containing .rovisions c/aracteristic o$ bot/ t/e contract o$ sale and o$ t/e contract o$ agency to sell, t/e essential clauses o$ t/e (/ole instru%ent s/all be considered. n!Art. 1-6". A contract $or t/e delivery at a certain .rice o$ an article (/ic/ t/e vendor in t/e ordinary course o$ /is business %anu$actures or .rocures $or t/e general %ar5et, (/et/er t/e sa%e is on /and at t/e ti%e or not, is a contract o$ sale, but i$ t/e goods are to be %anu$actured s.ecially $or t/e custo%er and u.on /is s.ecial order, and not $or t/e general %ar5et, it is a contract $or a .iece o$ (or5. n!Art. 1-61. 9$ t/e consideration o$ t/e contract consists .artly in %oney, and .artly in anot/er t/ing, t/e transaction s/all be c/aracteri@ed by t/e %ani$est intention o$ t/e .arties. 9$ suc/ intention does not clearly a..ear, it s/all be considered a barteri$ t/e value o$ t/e t/ing given as a .art o$ t/e consideration e3ceeds t/e a%ount o$ t/e %oney or its e6uivalent) ot/er(ise, it is a sale. 1--6a!Art. 1-62. 9n order t/at t/e .rice %ay be considered certain, it s/all be su$$icient t/at it be so (it/ re$erence to anot/er t/ing certain, or t/at t/e deter%ination t/ereo$ be le$t to t/e judg%ent o$ a s.ecial .erson or .ersons.=/ould suc/ .erson or .ersons be unable or un(illing to $i3 it, t/e contract s/all be ine$$icacious, unless t/e .arties subse6uently agree u.on t/e .rice.9$ t/e t/ird .erson or .ersons acted in bad $ait/ or by %ista5e, t/e courts %ay $i3 t/e .rice.:/ere suc/ t/ird .erson or .ersons are .revented $ro% $i3ing t/e .rice or ter%s by $ault o$ t/e seller or t/e buyer, t/e .arty not in $ault %ay /ave suc/ re%edies against t/e .arty in $ault as are allo(ed t/e seller or t/e buyer, as t/e case %ay be. 1--"a!Art. 1-"0. Eross inade6uacy o$ .rice does not a$$ect a contract o$ sale, e3ce.t as it %ay indicate a de$ect in t/e consent, or t/at t/e .arties really intended a donation or so%e ot/er act or contract. n!Art. 1-"1. 9$ t/e .rice is si%ulated, t/e sale is void, but t/e act %ay be s/o(n to /ave been in reality a donation, or so%e ot/er act or contract. n!Art. 1-"*. T/e .rice o$ securities, grain, li6uids, and ot/er t/ings s/all also be considered certain, (/en t/e .rice $i3ed is t/at(/ic/ t/e t/ing sold (ould /ave on a de$inite day, or in a .articular e3c/ange or %ar5et, or (/en an a%ount is $i3ed above or belo( t/e .rice on suc/ day, or in suc/ e3c/ange or %ar5et, .rovided said a%ount be certain. 1--1!Art. 1-"+. T/e $i3ing o$ t/e .rice can never be le$t to t/e discretion o$ one o$ t/e contracting .arties. Ho(ever, i$ t/e .rice $i3ed by one o$ t/e .arties is acce.ted by t/e ot/er, t/e sale is .er$ected. 1--2a!Art. 1-"-. :/ere t/e .rice cannot be deter%ined in accordance (it/ t/e .receding articles, or in any ot/er %anner, t/e contract is ine$$icacious. Ho(ever, i$ t/e t/ing or any .art t/ereo$ /as been delivered to and a..ro.riated by t/e buyer /e %ust .ay a reasonable .rice t/ere$or. :/at is a reasonable .rice is a 6uestion o$ $act de.endent on t/e circu%stances o$ eac/ .articular case. n!Art. 1-"5. T/e contract o$ sale is .er$ected at t/e %o%ent t/ere is a %eeting o$ %inds u.on t/e t/ing (/ic/ is t/e object o$ t/e contract and u.on t/e .rice.;ro% t/at %o%ent, t/e .arties %ay reci.rocally de%and .er$or%ance, subject to t/e .rovisions o$ t/e la( governing t/e $or% o$ contracts. 1-50a!Art. 1-"6. 9n t/e case o$ a sale by auction&1! :/ere goods are .ut u. $or sale by auction in lots, eac/ lot is t/e subject o$ a se.arate contract o$ sale.*! A sale by auction is .er$ected (/en t/e auctioneer announces its .er$ection by t/e $all o$ t/e /a%%er, or in ot/er custo%ary %anner. 1. ? Eeneral Provisions Art. 1-25. T/e vendor is bound to trans$er t/e o(ners/i. o$ and deliver, as (ell as (arrant t/e t/ing (/ic/ is t/e object o$ t/e sale. 1-61a!Art. 1-26. T/e o(ners/i. o$ t/e t/ing sold is ac6uired by t/e vendee $ro% t/e %o%ent it is delivered to /i% in any o$ t/e (ays s.eci$ied in Articles 1-2" to 1501, or in any ot/er %anner signi$ying an agree%ent t/at t/e .ossession is trans$erred $ro% t/e vendor to t/e vendee. n! =ECT9#> *. ? Celivery o$ t/e T/ing =old Art. 1-2". T/e t/ing sold s/all be understood as delivered, (/en it is .laced in t/e control and .ossession o$ t/e vendee. 1-6*a!Art. 1-21. :/en t/e sale is %ade t/roug/ a .ublic instru%ent, t/e e3ecution t/ereo$ s/all be e6uivalent to t/e delivery o$ t/et/ing (/ic/ is t/e object o$ t/e contract, i$ $ro% t/e deed t/e contrary does not a..ear or cannot clearly be in$erred.:it/ regard to %ovable .ro.erty, its delivery %ay also be %ade by t/e delivery o$ t/e 5eys o$ t/e .lace or de.ository (/ere itis stored or 5e.t. 1-6+a!Art. 1-22. T/e delivery o$ %ovable .ro.erty %ay li5e(ise be %ade by t/e %ere consent or agree%ent o$ t/e contracting .arties, i$ t/e t/ing sold cannot be trans$erred to t/e .ossession o$ t/e vendee at t/e ti%e o$ t/e sale, or i$ t/e latter already /ad it in /is .ossession $or any ot/er reason. 1-6+a!Art. 1500. T/ere %ay also be tradition constitutu% .ossessoriu%. n!Art. 1501. :it/ res.ect to incor.oreal .ro.erty, t/e .rovisions o$ t/e $irst .aragra./ o$ article 1-21 s/all govern. 9n any ot/er case (/erein said .rovisions are not a..licable, t/e .lacing o$ t/e titles o$ o(ners/i. in t/e .ossession o$ t/e vendee or t/e use by t/e vendee o$ /is rig/ts, (it/ t/e vendorBs consent, s/all be understood as a delivery. 1-6-!Art. 150*. :/en goods are delivered to t/e buyer Fon sale or returnG to give t/e buyer an o.tion to return t/e goods instead o$ .aying t/e .rice, t/e o(ners/i. .asses to t/e buyer o$ delivery, but /e %ay revest t/e o(ners/i. in t/e seller by returning or tendering t/e goods (it/in t/e ti%e $i3ed in t/e contract, or, i$ no ti%e /as been $i3ed, (it/in a reasonable ti%e. n!:/en goods are delivered to t/e buyer on a..roval or on trial or on satis$action, or ot/er si%ilar ter%s, t/e o(ners/i. t/erein .asses to t/e buyer&1! :/en /e signi$ies /is a..roval or acce.tance to t/e seller or does any ot/er act ado.ting t/e transaction)*! 9$ /e does not signi$y /is a..roval or acce.tance to t/e seller, but retains t/e goods (it/out giving notice o$ rejection, t/en i$ a ti%e /as been $i3ed $or t/e return o$ t/e goods, on t/e e3.iration o$ suc/ ti%e, and, i$ no ti%e /as been $i3ed, on t/ee3.iration o$ a reasonable ti%e. :/at is a reasonable ti%e is a 6uestion o$ $act. n!Art. 150+. :/en t/ere is a contract o$ sale o$ s.eci$ic goods, t/e seller %ay, by t/e ter%s o$ t/e contract, reserve t/e rig/t o$ .ossession or o(ners/i. in t/e goods until certain conditions /ave been $ul$illed. T/e rig/t o$ .ossession or o(ners/i. %ay be t/us reserved not(it/standing t/e delivery o$ t/e goods to t/e buyer or to a carrier or ot/er bailee $or t/e .ur.ose o$ trans%ission to t/e buyer.:/ere goods are s/i..ed, and by t/e bill o$ lading t/e goods are deliverable to t/e seller or /is agent, or to t/e order o$ t/e seller or o$ /is agent, t/e seller t/ereby reserves t/e o(ners/i. in t/e goods. 4ut, i$ e3ce.t $or t/e $or% o$ t/e bill o$ lading, t/e o(ners/i. (ould /ave .assed to t/e buyer on s/i.%ent o$ t/e goods, t/e sellerBs .ro.erty in t/e goods s/all be dee%ed to be only $or t/e .ur.ose o$ securing .er$or%ance by t/e buyer o$ /is obligations under t/e contract.:/ere goods are s/i..ed, and by t/e bill o$ lading t/e goods are deliverable to order o$ t/e buyer or o$ /is agent, but .ossession o$ t/e bill o$ lading is retained by t/e seller or /is agent, t/e seller t/ereby reserves a rig/t to t/e .ossession o$ t/e goods as against t/e buyer.:/ere t/e seller o$ goods dra(s on t/e buyer $or t/e .rice and trans%its t/e bill o$ e3c/ange and bill o$ lading toget/er to t/e buyer to secure acce.tance or .ay%ent o$ t/e bill o$ e3c/ange, t/e buyer is bound to return t/e bill o$ lading i$ /e does not /onor t/e bill o$ e3c/ange, and i$ /e (rong$ully retains t/e bill o$ lading /e ac6uires no added rig/t t/ereby. 9$, /o(ever, t/e bill o$ lading .rovides t/at t/e goods are deliverable to t/e buyer or to t/e order o$ t/e buyer, or is indorsed in blan5, or tot/e buyer by t/e consignee na%ed t/erein, one (/o .urc/ases in good $ait/, $or value, t/e bill o$ lading, or goods $ro% t/e buyer (ill obtain t/e o(ners/i. in t/e goods, alt/oug/ t/e bill o$ e3c/ange /as not been /onored, .rovided t/at suc/ .urc/aser /as received delivery o$ t/e bill o$ lading indorsed by t/e consignee na%ed t/erein, or o$ t/e goods, (it/out noticeo$ t/e $acts %a5ing t/e trans$er (rong$ul. n!Art. 150-. ot/ing in t/is Title, /o(ever, s/all a$$ect&1! T/e .rovisions o$ any $actorsB act, recording la(s, or any ot/er .rovision o$ la( enabling t/e a..arent o(ner o$ goods to dis.ose o$ t/e% as i$ /e (ere t/e true o(ner t/ereo$)*! T/e validity o$ any contract o$ sale under statutory .o(er o$ sale or under t/e order o$ a court o$ co%.etent jurisdiction)+! Purc/ases %ade in a %erc/antBs store, or in $airs, or %ar5ets, in accordance (it/ t/e Code o$ Co%%erce and s.ecial la(s. n!Art. 1506. :/ere t/e seller o$ goods /as a voidable title t/ereto, but /is title /as not been avoided at t/e ti%e o$ t/e sale, t/ebuyer ac6uires a good title to t/e goods, .rovided /e buys t/e% in good $ait/, $or value, and (it/out notice o$ t/e sellerBs de$ect o$ title. n!Art. 150". A docu%ent o$ title in (/ic/ it is stated t/at t/e goods re$erred to t/erein (ill be delivered to t/e bearer, or to t/e order o$ any .erson na%ed in suc/ docu%ent is a negotiable docu%ent o$ title. n!Art. 1501. A negotiable docu%ent o$ title %ay be negotiated by delivery&1! :/ere by t/e ter%s o$ t/e docu%ent t/e carrier, (are/ouse%an or ot/er bailee issuing t/e sa%e underta5es to deliver t/e goods to t/e bearer) or*! :/ere by t/e ter%s o$ t/e docu%ent t/e carrier, (are/ouse%an or ot/er bailee issuing t/e sa%e underta5es to deliver t/e goods to t/e order o$ a s.eci$ied .erson, and suc/ .erson or a subse6uent endorsee o$ t/e docu%ent /as indorsed it in blan5 or to t/e bearer.:/ere by t/e ter%s o$ a negotiable docu%ent o$ title t/e goods are deliverable to bearer or (/ere a negotiable docu%ent o$ title /as been indorsed in blan5 or to bearer, any /older %ay indorse t/e sa%e to /i%sel$ or to any s.eci$ied .erson, and in suc/ case t/e docu%ent s/all t/erea$ter be negotiated only by t/e endorse%ent o$ suc/ endorsee. n!Art. 1502. A negotiable docu%ent o$ title %ay be negotiated by t/e endorse%ent o$ t/e .erson to (/ose order t/e goods are by t/e ter%s o$ t/e docu%ent deliverable. =uc/ endorse%ent %ay be in blan5, to bearer or to a s.eci$ied .erson. 9$ indorsed to a s.eci$ied .erson, it %ay be again negotiated by t/e endorse%ent o$ suc/ .erson in blan5, to bearer or to anot/er s.eci$ied .erson. =ubse6uent negotiations %ay be %ade in li5e %anner. n!Art. 1510. 9$ a docu%ent o$ title (/ic/ contains an underta5ing by a carrier, (are/ouse%an or ot/er bailee to deliver t/e goods to bearer, to a s.eci$ied .erson or order o$ a s.eci$ied .erson or (/ic/ contains (ords o$ li5e i%.ort, /as .laced u.onit t/e (ords Fnot negotiable,G Fnon-negotiableG or t/e li5e, suc/ docu%ent %ay nevert/eless be negotiated by t/e /older and is a negotiable docu%ent o$ title (it/in t/e %eaning o$ t/is Title. 4ut not/ing in t/is Title contained s/all be construed as li%iting or de$ining t/e e$$ect u.on t/e obligations o$ t/e carrier, (are/ouse%an, or ot/er bailee issuing a docu%ent o$ title or.lacing t/ereon t/e (ords Fnot negotiable,G Fnon-negotiable,G or t/e li5e. n!Lawcenter.phArt. 1511. A docu%ent o$ title (/ic/ is not in suc/ $or% t/at it can be negotiated by delivery %ay be trans$erred by t/e /older by delivery to a .urc/aser or donee. A non-negotiable docu%ent cannot be negotiated and t/e endorse%ent o$ suc/ a docu%ent gives t/e trans$eree no additional rig/t. n!Art. 151*. A negotiable docu%ent o$ title %ay be negotiated&1! 4y t/e o(ner t/ere$or) or*! 4y any .erson to (/o% t/e .ossession or custody o$ t/e docu%ent /as been entrusted by t/e o(ner, i$, by t/e ter%s o$ t/e docu%ent t/e bailee issuing t/e docu%ent underta5es to deliver t/e goods to t/e order o$ t/e .erson to (/o% t/e .ossession or custody o$ t/e docu%ent /as been entrusted, or i$ at t/e ti%e o$ suc/ entrusting t/e docu%ent is in suc/ $or% t/at it %ay be negotiated by delivery. n!Art. 151+. A .erson to (/o% a negotiable docu%ent o$ title /as been duly negotiated ac6uires t/ereby&Lawcenter.ph1! =uc/ title to t/e goods as t/e .erson negotiating t/e docu%ent to /i% /ad or /ad ability to convey to a .urc/aser in good$ait/ $or value and also suc/ title to t/e goods as t/e .erson to (/ose order t/e goods (ere to be delivered by t/e ter%s o$ t/e docu%ent /ad or /ad ability to convey to a .urc/aser in good $ait/ $or value) and*! T/e direct obligation o$ t/e bailee issuing t/e docu%ent to /old .ossession o$ t/e goods $or /i% according to t/e ter%s o$t/e docu%ent as $ully as i$ suc/ bailee /ad contracted directly (it/ /i%. n!Art. 151-. A .erson to (/o% a docu%ent o$ title /as been trans$erred, but not negotiated, ac6uires t/ereby, as against t/e trans$eror, t/e title to t/e goods, subject to t/e ter%s o$ any agree%ent (it/ t/e trans$eror.9$ t/e docu%ent is non-negotiable, suc/ .erson also ac6uires t/e rig/t to noti$y t/e bailee (/o issued t/e docu%ent o$ t/e trans$er t/ereo$, and t/ereby to ac6uire t/e direct obligation o$ suc/ bailee to /old .ossession o$ t/e goods $or /i% accordingto t/e ter%s o$ t/e docu%ent.Prior to t/e noti$ication to suc/ bailee by t/e trans$eror or trans$eree o$ a non-negotiable docu%ent o$ title, t/e title o$ t/e trans$eree to t/e goods and t/e rig/t to ac6uire t/e obligation o$ suc/ bailee %ay be de$eated by t/e levy o$ an attac/%ent o$ e3ecution u.on t/e goods by a creditor o$ t/e trans$eror, or by a noti$ication to suc/ bailee by t/e trans$eror or a subse6uent .urc/aser $ro% t/e trans$er o$ a subse6uent sale o$ t/e goods by t/e trans$eror. n!Art. 1515. :/ere a negotiable docu%ent o$ title is trans$erred $or value by delivery, and t/e endorse%ent o$ t/e trans$eror is essential $or negotiation, t/e trans$eree ac6uires a rig/t against t/e trans$eror to co%.el /i% to endorse t/e docu%ent unless a contrary intention a..ears. T/e negotiation s/all ta5e e$$ect as o$ t/e ti%e (/en t/e endorse%ent is actually %ade. n!Art. 1516. A .erson (/o $or value negotiates or trans$ers a docu%ent o$ title by endorse%ent or delivery, including one (/o assigns $or value a clai% secured by a docu%ent o$ title unless a contrary intention a..ears, (arrants&1! T/at t/e docu%ent is genuine)*! T/at /e /as a legal rig/t to negotiate or trans$er it)+! T/at /e /as 5no(ledge o$ no $act (/ic/ (ould i%.air t/e validity or (ort/ o$ t/e docu%ent) and-! T/at /e /as a rig/t to trans$er t/e title to t/e goods and t/at t/e goods are %erc/antable or $it $or a .articular .ur.ose, (/enever suc/ (arranties (ould /ave been i%.lied i$ t/e contract o$ t/e .arties /ad been to trans$er (it/out a docu%ent o$ title t/e goods re.resented t/ereby. n!Art. 151". T/e endorse%ent o$ a docu%ent o$ title s/all not %a5e t/e endorser liable $or any $ailure on t/e .art o$ t/e bailee (/o issued t/e docu%ent or .revious endorsers t/ereo$ to $ul$ill t/eir res.ective obligations. n!Art. 1511. T/e validity o$ t/e negotiation o$ a negotiable docu%ent o$ title is not i%.aired by t/e $act t/at t/e negotiation (as a breac/ o$ duty on t/e .art o$ t/e .erson %a5ing t/e negotiation, or by t/e $act t/at t/e o(ner o$ t/e docu%ent (as de.rived o$ t/e .ossession o$ t/e sa%e by loss, t/e$t, $raud, accident, %ista5e, duress, or conversion, i$ t/e .erson to (/o% t/e docu%ent (as negotiated or a .erson to (/o% t/e docu%ent (as subse6uently negotiated .aid value t/ere$or in good $ait/ (it/out notice o$ t/e breac/ o$ duty, or loss, t/e$t, $raud, accident, %ista5e, duress or conversion. n!Art. 1512. 9$ goods are delivered to a bailee by t/e o(ner or by a .erson (/ose act in conveying t/e title to t/e% to a .urc/aser in good $ait/ $or value (ould bind t/e o(ner and a negotiable docu%ent o$ title is issued $or t/e% t/ey cannot t/erea$ter, (


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