CIVIL LAW REVIEW 2
BOOK IV Obligations and Conta!ts TITLE I Obligations C"APTER # Geneal Po$isions Ati!le ##%&' An obligation is a ()idi!al ne!essit* to gi$e+ to do o not to do' ,nAti!le ##%.' Obligations aise /o01
Ati!le ##&:' Obligations dei$ed / o0 ?)asi6!onta!ts s9all be s)b(e!t to t9e 8o$isions o/ C9a8te #+ Title @VII+ o/ t9is Boo>' ,n-
!edito+ in addition to t9e ig9t ganted 9i0 b* ati!le ##.:+ 0a* !o08el t9e debto to 0a>e t9e deli$e*'
Ati!le ##&#' Ci$il obligations aising /o0 !i0inal oenses s9all be go$ened b* t9e 8enal las+ s)b(e!t to t9e 8o$isions o/ ati!le 2#..+ and o/ t9e 8etinent 8o$isions o/ C9a8te 2+ Peli0ina* Title+ on ")0an Relations+ Relations+ and o/ Title @VIII o/ t9is Boo>+ eg)lating da0ages' ,#:<2a-
I/ t9e t9ing is indete0inate o genei!+ 9e 0a* as> t9at t9e obligation be !o08lied it9 at t9e e=8ense o/ t9e debto'
,#- La3 ,2- Conta!ts3 ,4- 5)asi6!onta!ts3 5)asi6!onta!ts3 ,7- A!ts o o0issions 8)nis9ed b* la3 and
Ati!le ##&2' Obligations dei$ed / o0 ?)asi6deli!ts s9all be go$ened b* t9e 8o$isions o/ C9a8te 2+ Title @VII o/ t9is Boo>+ and b* s8e!ial las' ,#:<4aC"APTER 2 Nat)e and Ee!t o/ Obligations
,%- 5)asi6deli!ts' ,#:;
' ,#:<:Ati!le ##%<' Obligations aising /o0 !onta!ts 9a$e t9e /o!e o/ la beteen t9e !onta!ting 8aties and s9o)ld be !o08lied it9 in good /ait9' ,#:<#a-
OBLIGATION AND C O N T R A C T S P a g e | 1
Ati!le ##&4' E$e* 8eson obliged to gi$e so0et9ing is also obliged to ta>e !ae o/ it it9 t9e 8o8e diligen!e o/ a good /at9e o/ a /a0il*+ )nless t9e l a o t9e sti8)lation o/ t9e 8aties e?)ies anot9e standad o/ !ae' ,#:<7aAti!le ##&7' T9e !edito 9as a ig9t to t9e /)its o/ t9e t9ing /o0 t9e ti0e t9e obligation to deli$e it aises' "oe$e+ 9e s9all a!?)ie no eal ig9t o$e it )ntil t9e sa0e 9as been deli$eed to 9i0' ,#:<%Ati!le ##&%' W9en 9at is to be deli$eed is a dete0inate t9ing+ t9e
I/ t9e obligo dela*s+ o 9as 8o0ised to deli$e t9e sa0e t9ing to to o 0oe 8esons 9o do not 9a$e t9e sa0e inteest+ 9e s9all be es8onsible /o an* /ot)ito)s e$ent )ntil 9e 9as ee!ted t9e deli$e*' ,#:<&Ati!le ##&&' T9e obligation to gi$e a dete0inate t9ing in!l)des t9at o/ deli$eing all its a!!essions and a!!essoies+ e$en t9o)g9 t9e* 0a* not 9a$e been 0entioned' ,#:<.aAti!le ##&.' I/ a 8eson obliged to do so0et9ing /ails to do it+ t9e sa0e s9all be e=e!)ted at 9is !ost' T9is sa0e )le s9all be obse$ed obse$ed i/ 9e does it in !onta$ention o/ t9e teno o/ t9e obligation' )t9e0oe+ )t9e0oe+ it 0a* be de!eed t9at 9at 9as been 8ool* done be )ndone' ,#:<;Ati!le ##&;' W9en t9e obligation !onsists in not doing+ and t9e obligo does 9at 9as been /obidden 9i0+ it s9all also be )ndone at 9is e=8ense' ,#:<
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Ati!le ##&<' T9ose obliged to deli$e o to do so0et9ing in!) in dela* / o0 t9e ti0e t9e obligee ()di!iall* o e=ta()di!iall* de0ands /o0 t9e0 t9e /)lll0ent o/ t9ei obligation' "oe$e+ t9e de0and b* t9e !edito s9all not be ne!essa* in ode t9at dela* 0a* e=ist1 ,#- W9en t9e obligation o t9e la e=8essl* so de!lae3 o ,2- W9en /o0 t9e nat)e and t9e !i!)0stan!es !i!)0stan!es o/ t9e obligation it a88eas t9at t9e designation o/ t9e ti0e 9en t9e t9ing is to be deli$eed o t9e se$i!e is to be endeed as a !ontolling 0oti$e /o t9e establis90ent o/ t9e !onta!t3 o ,4- W9en de0and o)ld be )seless+ as 9en t9e obligo 9as endeed it be*ond 9is 8oe to 8e/o0' In e!i8o!al obligations+ neit9e 8at* in!)s in dela* i/ t9e ot9e does not !o08l* o is not ead* to !o08l* in a 8o8e 0anne it9 9at is in!)0bent )8on 9i0' o0 t9e 0o0ent one o/ t9e 8aties /)llls 9is obligation+ dela* b* t9e ot9e begins' ,##::aAti!le ##.:' T9ose 9o in t9e 8e/o0an!e o/ t9ei obligations ae g)ilt* o/ /a)d+ negligen!e+ o dela*+ and t9ose 9o in an* 0anne !onta$ene t9e teno t9eeo/+ ae liable /o da0ages' ,##:#-
Ati!le ##.#' Res8onsibilit* aising /o0 /a)d is de0andable in all obligations' An* ai$e o/ an a!tion /o /)t)e /a)d is $oid' ,##:2aAti!le ##.2' Res8onsibilit* aising /o0 negligen!e in t9e 8e/o0an!e o/ e$e* >ind o/ obligation is also de0andable+ b)t s)!9 liabilit* 0a* be eg)lated b* t9e !o)ts+ a!!oding to t9e !i!)0stan!es' ,##:4Ati!le ##.4' T9e /a)lt o negligen!e o/ t9e obligo !onsists in t9e o0ission o/ t9at diligen!e 9i!9 is e?)ied b* t9e nat)e o/ t9e obligation and !oes8onds !oes8onds it9 t9e !i!)0stan!es o/ t9e 8esons+ o/ t9e ti0e and o/ t9e 8la!e' W9en negligen!e s9os bad /ait9+ t9e 8o$isions o/ ati!les ##.# and 22:#+ 8aaga89 2+ s9all a88l*' I/ t9e la o !onta!t does not state t9e diligen!e 9i!9 is to be obse$ed in t9e 8e/o0an!e+ t9at 9i!9 is e=8e!ted o/ a good /at9e o/ a /a0il* s9all be e?)ied' ,##:7aAti!le ##.7' E=!e8t in !ases e=8essl* s8e!ied b* t9e la+ o 9en it is ot9eise de!laed b* sti8)lation+ o 9en t9e nat)e o/ t9e obligation e?)ies t9e ass)08tion o/ is>+ no 8eson s9all be es8onsible /o t9ose e$ents 9i!9 !o)ld not be /oeseen+ o 9i!9+ t9o)g9 /oeseen+ ee ine$itable' ,##:%aAti!le ##.%' s)io)s tansa!tions s9all be go$ened b* s8e!ial las' ,n-
OBLIGATION AND C O N T R A C T S P a g e | 2 Ati!le ##.&' T9e e!ei8t o/ t9e 8in!i8al b* t9e !edito it9o)t ese$ation it9 es8e!t to t9e inteest+ s9all gi$e ise to t9e 8es)08tion t9at said inteest 9as been 8aid' T9e e!ei8t o/ a late install0ent o/ a debt it9o)t ese$ation as to 8io install0ents+ s9all li>eise aise t9e 8es)08tion t9at s)!9 install0ents 9a$e been 8aid' ,###:aAti!le ##..' T9e !editos+ a/te 9a$ing 8)s)ed t9e 8o8et* in 8ossession o/ t9e debto to satis/* t9ei !lai0s+ 0a* e=e!ise e=e!ise all t9e ig9ts and bing all t9e a!tions o/ t9e latte /o t9e sa0e 8)8ose+ sa$e t9ose 9i!9 ae in9eent in 9is 8eson3 t9e* 0a* also i08)gn t9e a!ts 9i!9 t9e debto 0a* 9a$e done to de/a)d t9e0' ,####Ati!le ##.;' S)b(e!t to t9e las+ all ig9ts a!?)ied in $it)e o/ an obligation ae tans0issible+ i/ t9ee 9as been no sti8)lation to t9e !onta*' ,###2-
C"APTER 4 Dieent Kinds o/ Obligations SECTION # P)e and Conditional Obligations
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Ati!le ##.<' E$e* obligation 9ose 8e/o0an!e does not de8end )8on a /)t)e o )n!etain e$ent+ o )8on a 8ast e$ent )n>non to t9e 8aties+ is de0andable at on!e' E$e* obligation 9i!9 !ontains a esol)to* !ondition s9all also be de0andable+ it9o)t 8e()di!e to t9e ee!ts o/ t9e 9a88ening o/ t9e e$ent' ,###4Ati!le ##;:' W9en t9e debto binds 9i0sel/ to 8a* 9en 9is 0eans 8e0it 9i0 to do so+ t9e obligation s9all be dee0ed to be one it9 a 8eiod+ s)b(e!t to t9e 8o$isions o/ ati!le ##<.' ,nAti!le ##;#' In !onditional obligations+ t9e a!?)isition o/ ig9ts+ as ell as t9e e=ting)is90ent o loss o/ t9ose alead* a!?)ied+ s9all de8end )8on t9e 9a88ening o/ t9e e$ent 9i!9 !onstit)tes t9e !ondition' ,###7Ati!le ##;2' W9en t9e /)lll0ent o/ t9e !ondition de8ends )8on t9e sole ill o/ t9e debto+ t9e !onditional obligation s9all be $oid' I/ it de8ends )8on !9an!e o )8on t9e ill o/ a t9id 8eson+ t9e obligation s9all ta>e ee!t in !on/o0it* it9 t9e 8o$isions o/ t9is Code' ,###%Ati!le ##;4' I08ossible !onditions+ t9ose !onta* to good !)sto0s o 8)bli! 8oli!* and t9ose 8o9ibited b* la s9all ann)l t9e obligation 9i!9 de8ends )8on t9e0' I/ t9e obligation
is di$isible+ t9at 8at t9eeo/ 9i!9 is not ae!ted b* t9e i08ossible o )nla/)l !ondition s9all be $alid' T9e !ondition not to do an i08ossible t9ing s9all be !onsideed as not 9a$ing been ageed )8on' ,###&aAti!le ##;7' T9e !ondition t9at so0e e$ent 9a88en at a dete0inate ti0e s9all e=ting)is9 t9e obligation as soon as t9e ti0e e=8ies o i/ it 9as be!o0e ind)bitable t9at t9e e$ent ill not ta>e 8la!e' ,###.Ati!le ##;%' T9e !ondition t9at so0e e$ent ill not 9a88en at a dete0inate ti0e s9all ende t9e obligation ee!ti$e /o0 t9e 0o0ent t9e ti0e indi!ated 9as ela8sed+ o i/ it 9as be!o0e e$ident t9at t9e e$ent !annot o!!)' I/ no ti0e 9as been =ed+ t9e !ondition s9all be dee0ed /)llled at s)!9 ti0e as 0a* 9a$e 8obabl* been !onte08lated+ beaing in 0ind t9e nat)e o/ t9e obligation' ,###;Ati!le ##;&' T9e !ondition s9all be dee0ed /)llled 9en t9e obligo $ol)ntail* 8e$ents its /)lll0ent' ,###
OBLIGATION AND C O N T R A C T S P a g e | 3 8estations )8on t9e 8aties+ t9e /)its and inteests d)ing t9e 8enden!* o/ t9e !ondition s9all be dee0ed to 9a$e been 0)t)all* !o08ensated' I/ t9e obligation is )nilateal+ t9e debto s9all a88o8iate t9e /)its and inteests e!ei$ed+ )nless /o0 t9e nat)e and !i!)0stan!es o/ t9e obligation it s9o)ld be in/eed t9at t9e intention o/ t9e 8eson !onstit)ting t9e sa0e as dieent' In obligations to do and not to do+ t9e !o)ts s9all dete0ine+ in ea!9 !ase+ t9e etoa!ti$e ee!t o/ t9e !ondition t9at 9as been !o08lied it9' ,##2:Ati!le ##;;' T9e !edito 0a*+ be/oe t9e /)lll0ent o/ t9e !ondition+ bing t9e a88o8iate a!tions /o t9e 8ese$ation o/ 9is ig9t' T9e debto 0a* e!o$e 9at d)ing t9e sa0e ti0e 9e 9as 8aid b* 0ista>e in !ase o/ a s)s8ensi$e !ondition' ,##2#aAti!le ##;<' W9en t9e !onditions 9a$e been i08osed it9 t9e intention o/ s)s8ending t9e e!a!* o/ an obligation to gi$e+ t9e /olloing )les s9all be obse$ed in !ase o/ t9e i08o$e0ent+ loss o deteioation o/ t9e t9ing d)ing t9e 8enden!* o/ t9e !ondition1 ,#- I/ t9e t9ing is l ost it9o)t t9e /a)lt o/ t9e debto+ t9e obligation s9all be e=ting)is9ed3
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,2- I/ t9e t9ing is l ost t9o)g9 t9e /a)lt o/ t9e debto+ 9e s9all be obliged to 8a* da0ages3 it is )ndestood t9at t9e t9ing is lost 9en it 8eis9es+ o goes o)t o/ !o00e!e+ o disa88eas in s)!9 a a* t9at its e=isten!e is )n>non o it !annot be e!o$eed3 ,4- W9en t9e t9ing deteioates it9o)t t9e /a)lt o/ t9e debto+ t9e i08ai0ent is to be bone b* t9e !edito3 ,7- I/ it deteioates t9o)g9 t9e /a)lt o/ t9e debto+ t9e !edito 0a* !9oose beteen t9e es!ission o/ t9e obligation and its /)lll0ent+ it9 inde0nit* /o da0ages in eit9e !ase3 ,%- I/ t9e t9ing is i 08o$ed b* its nat)e+ o b* ti0e+ t9e i08o$e0ent s9all in)e to t9e benet o/ t9e !edito3 ,&- I/ it is i08o$ed at t9e e=8ense o/ t9e debto+ 9e s9all 9a$e no ot9e ig9t t9an t9at ganted to t9e )s)/)!t)a*' ,##22Ati!le ##<:' W9en t9e !onditions 9a$e /o t9ei 8)8ose t9e e=ting)is90ent o/ an obligation to gi$e+ t9e 8aties+ )8on t9e /)lll0ent o/ said !onditions+ s9all et)n to ea!9 ot9e 9at t9e* 9a$e e!ei$ed' In !ase o/ t9e loss+ deteioation o i08o$e0ent o/ t9e t9ing+ t9e 8o$isions 9i!9+ it9 es8e!t to t9e debto+ ae laid don in t9e 8e!eding
ati!le s9all be a88lied to t9e 8at* 9o is bo)nd to et)n' As /o t9e obligations to do and not to do+ t9e 8o$isions o/ t9e se!ond 8aaga89 o/ ati!le ##;. s9all be obse$ed as egads t9e ee!t o/ t9e e=ting)is90ent o/ t9e obligation' ,##24Ati!le ##<#' T9e 8oe to es!ind obligations is i08lied in e!i8o!al ones+ in !ase one o/ t9e obligos s9o)ld not !o08l* it9 9at is in!)0bent )8on 9i0' T9e in()ed 8at* 0a* !9oose beteen t9e /)lll0ent and t9e es!ission o/ t9e obligation+ it9 t9e 8a*0ent o/ da0ages in eit9e !ase' "e 0a* also see> es!ission+ e$en a/te 9e 9as !9osen /)lll0ent+ i/ t9e latte s9o)ld be!o0e i08ossible' T9e !o)t s9all de!ee t9e es!ission !lai0ed+ )nless t9ee be ()st !a)se a)t9oiFing t9e =ing o/ a 8eiod' T9is is )ndestood to be it9o)t 8e()di!e to t9e ig9ts o/ t9id 8esons 9o 9a$e a!?)ied t9e t9ing+ in a!!odan!e it9 ati!les #4;% and #4;; and t9e otgage La' ,##27Ati!le ##<2' In !ase bot9 8aties 9a$e !o00itted a bea!9 o/ t9e obligation+ t9e liabilit* o/ t9e st i n/a!to s9all be e?)itabl* te08eed b* t9e !o)ts' I/ it !annot be dete0ined 9i!9 o/ t9e 8aties st $iolated t9e !onta!t+ t9e
OBLIGATION AND C O N T R A C T S P a g e | 4 sa0e s9all be dee0ed e=ting)is9ed+ and ea!9 s9all bea 9is on da0ages' ,n-
SECTION 2 Obligations it9 a Peiod Ati!le ##<4' Obligations /o 9ose /)lll0ent a da* !etain 9as been =ed+ s9all be de0andable onl* 9en t9at da* !o0es' Obligations it9 a esol)to* 8eiod ta>e ee!t at on!e+ b)t te0inate )8on ai$al o/ t9e da* !etain' A da* !etain is )ndestood to be t9at 9i!9 0)st ne!essail* !o0e+ alt9o)g9 it 0a* not be >non 9en' I/ t9e )n!etaint* !onsists in 9et9e t9e da* ill !o0e o not+ t9e obligation is !onditional+ and it s9all be eg)lated b* t9e )les o/ t9e 8e!eding Se!tion' ,##2%aAti!le ##<7' In !ase o/ loss+ deteioation o i08o$e0ent o/ t9e t9ing be/oe t9e ai$al o/ t9e da* !etain+ t9e )les in ati!le ##;< s9all be obse$ed' ,nAti!le ##<%' An*t9ing 8aid o deli$eed be/oe t9e ai$al o/ t9e 8eiod+ t9e obligo being )naae o/ t9e 8eiod o belie$ing t9at t9e
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OBLIGATION AND C O N T R A C T S P a g e | 5
obligation 9as be!o0e d)e and de0andable+ 0a* be e!o$eed+ it9 t9e /)its and inteests' ,##2&a-
,2- W9en 9e does not /)nis9 to t9e !edito t9e g)aanties o se!)ities 9i!9 9e 9as 8o0ised3
Ati!le #2:#' T9e !9oi!e s9all 8od)!e no ee!t e=!e8t /o0 t9e ti0e it 9as been !o00)ni!ated' ,##44-
Ati!le ##<&' W9ene$e in an obligation a 8eiod is designated+ it is 8es)0ed to 9a$e been establis9ed /o t9e benet o/ bot9 t9e !edito and t9e debto+ )nless /o0 t9e teno o/ t9e sa0e o ot9e !i!)0stan!es it s9o)ld a88ea t9at t9e 8eiod 9as been establis9ed in /a$o o/ one o o/ t9e ot9e' ,##2.-
,4- W9en b* 9is on a!ts 9e 9as i08aied said g)aanties o se!)ities a/te t9ei establis90ent+ and 9en t9o)g9 a /ot)ito)s e$ent t9e* disa88ea+ )nless 9e i00ediatel* gi$es ne ones e?)all* satis/a!to*3
Ati!le #2:2' T9e debto s9all lose t9e ig9t o/ !9oi!e 9en a0ong t9e 8estations 9eeb* 9e is altenati$el* bo)nd+ onl* one is 8a!ti!able' ,##47-
Ati!le ##<.' I/ t9e obligation does not = a 8eiod+ b)t /o0 its nat)e and t9e !i!)0stan!es it !an be in/eed t9at a 8eiod as intended+ t9e !o)ts 0a* = t9e d)ation t9eeo/' T9e !o)ts s9all also = t9e d)ation o/ t9e 8eiod 9en it de8ends )8on t9e ill o/ t9e debto' In e$e* !ase+ t9e !o)ts s9all dete0ine s)!9 8eiod as 0a* )nde t9e !i!)0stan!es 9a$e been 8obabl* !onte08lated b* t9e 8aties' On!e =ed b* t9e !o)ts+ t9e 8eiod !annot be !9anged b* t9e0' ,##2;aAti!le ##<;' T9e debto s9all lose e$e* ig9t to 0a>e )se o/ t9e 8eiod1 ,#- W9en a/te t9e obligation 9as been !onta!ted+ 9e be!o0es insol$ent+ )nless 9e gi$es a g)aant* o se!)it* /o t9e debt3
,7- W9en t9e debto $iolates an* )ndeta>ing+ in !onsideation o/ 9i!9 t9e !edito ageed to t9e 8eiod3 ,%- W9en t9e debto atte08ts to abs!ond' ,##2ing' ,##4#Ati!le #2::' T9e ig9t o/ !9oi!e belongs to t9e debto+ )nless it 9as been e=8essl* ganted to t9e !edito' T9e debto s9all 9a$e no ig9t to !9oose t9ose 8estations 9i!9 ae i08ossible+ )nla/)l o 9i!9 !o)ld not 9a$e been t9e ob(e!t o/ t9e obligation' ,##42-
Ati!le #2:4' I/ t9o)g9 t9e !editoHs a!ts t9e debto !annot 0a>e a !9oi!e a!!oding to t9e te0s o/ t9e obligation+ t9e latte 0a* es!ind t9e !onta!t it9 da0ages' ,nAti!le #2:7' T9e !edito s9all 9a$e a ig9t to inde0nit* /o da0ages 9en+ t9o)g9 t9e /a)lt o/ t9e debto+ all t9e t9ings 9i!9 ae altenati$el* t9e ob(e!t o/ t9e obligation 9a$e been lost+ o t9e !o08lian!e o/ t9e obligation 9as be!o0e i08ossible' T9e inde0nit* s9all be =ed ta>ing as a basis t9e $al)e o/ t9e l ast t9ing 9i!9 disa88eaed+ o t9at o/ t9e se$i!e 9i!9 last be!a0e i08ossible' Da0ages ot9e t9an t9e $al)e o/ t9e last t9ing o se$i!e 0a* also be aaded' ,##4%aAti!le #2:%' W9en t9e !9oi!e 9as been e=8essl* gi$en to t9e !edito+ t9e obligation s9all !ease to be altenati$e /o0 t9e da* 9en t9e sele!tion 9as been !o00)ni!ated to t9e debto'
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ntil t9en t9e es8onsibilit* o/ t9e debto s9all be go$ened b* t9e /olloing )les1 ,#- I/ one o/ t9e t9ings is lost t9o)g9 a /ot)ito)s e$ent+ 9e s9all 8e/o0 t9e obligation b* deli$eing t9at 9i!9 t9e !edito s9o)ld !9oose /o0 a0ong t9e e0ainde+ o t9at 9i!9 e0ains i/ onl* one s)bsists3 ,2- I/ t9e loss o/ one o/ t9e t9ings o!!)s t9o)g9 t9e /a)lt o/ t9e debto+ t9e !edito 0a* !lai0 an* o/ t9ose s)bsisting+ o t9e 8i!e o/ t9at 9i!9+ t9o)g9 t9e /a)lt o/ t9e /o0e+ 9as disa88eaed+ it9 a ig9t to da0ages3 ,4- I/ all t9e t9ings ae lost t9o)g9 t9e /a)lt o/ t9e debto+ t9e !9oi!e b* t9e !edito s9all /all )8on t9e 8i!e o/ an* one o/ t9e0+ also it9 inde0nit* / o da0ages' T9e sa0e )les s9all be a88lied to obligations to do o not to do in !ase one+ so0e o all o/ t9e 8 estations s9o)ld be!o0e i08ossible' ,##4&aAti!le #2:&' W9en onl* one 8estation 9as been ageed )8on+ b)t t9e obligo 0a* ende anot9e in s)bstit)tion+ t9e obligation is !alled /a!)ltati$e' T9e loss o deteioation o/ t9e t9ing intended as a s)bstit)te+ t9o)g9 t9e negligen!e o/ t9e obligo+ does not ende 9i0 liable' B)t on!e t9e s)bstit)tion 9as been 0ade+ t9e obligo is liable /o t9e loss o/ t9e
s)bstit)te on a!!o)nt o/ 9is dela*+ negligen!e o /a)d' ,n-
SECTION 7
OBLIGATION AND C O N T R A C T S P a g e | 6 s9o)ld be insol$ent+ t9e ot9es s9all not be liable /o 9is s9ae' ,##4
oint and Solida* Obligations Ati!le #2:.' T9e !on!)en!e o/ to o 0oe !editos o o/ to o 0oe debtos in one and t9e sa0e obligation does not i08l* t9at ea!9 one o/ t9e /o0e 9as a ig9t to de0and+ o t9at ea!9 one o/ t9e latte is bo)nd to ende+ entie !o08lian!e it9 t9e 8estation' T9ee is a solida* liabilit* onl* 9en t9e obligation e=8essl* so states+ o 9en t9e la o t9e nat)e o/ t9e obligation e?)ies solidait*' ,##4.aAti!le #2:;' I/ /o0 t9e la+ o t9e nat)e o t9e oding o/ t9e obligations to 9i!9 t9e 8e!eding ati!le e/es t9e !onta* does not a88ea+ t9e !edit o debt s9all be 8es)0ed to be di$ided into as 0an* s9aes as t9ee ae !editos o debtos+ t9e !edits o debts being !onsideed distin!t /o0 one anot9e+ s)b(e!t to t9e R)les o/ Co)t go$ening t9e 0)lti8li!it* o/ s)its' ,##4;aAti!le #2:<' I/ t9e di$ision is i08ossible+ t9e ig9t o/ t9e !editos 0a* be 8e()di!ed onl* b* t9ei !olle!ti$e a!ts+ and t9e debt !an be en/o!ed onl* b* 8o!eeding against all t9e debtos' I/ one o/ t9e latte
Ati!le #2##' Solidait* 0a* e=ist alt9o)g9 t9e !editos and t9e debtos 0a* not be bo)nd in t9e sa0e 0anne and b* t9e sa0e 8eiods and !onditions' ,##7:Ati!le #2#2' Ea!9 one o/ t9e solida* !editos 0a* do 9ate$e 0a* be )se/)l to t9e ot9es+ b)t not an*t9ing 9i!9 0a* be 8e()di!ial to t9e latte' ,##7#aAti!le #2#4' A solida* !edito !annot assign 9is ig9ts it9o)t t9e !onsent o/ t9e ot9es' ,nAti!le #2#7' T9e debto 0a* 8a* an* one o/ t9e solida* !editos3 b)t i/ an* de0and+ ()di!ial o e=ta()di!ial+ 9as been 0ade b* one o/ t9e0+ 8a*0ent s9o)ld be 0ade to 9i0' ,##72aAti!le #2#%' No$ation+ !o08ensation+ !on/)sion o e0ission o/ t9e debt+ 0ade b* an* o/ t9e solida* !editos o it9 an* o/ t9e solida* debtos+ s9all e=ting)is9 t9e obligation+ it9o)t 8e()di!e to t9e 8o$isions o/ ati!le #2#<' T9e !edito 9o 0a* 9a$e e=e!)ted an* o/ t9ese a!ts+ as ell as 9e 9o
CIVIL LAW REVIEW 2
!olle!ts t9e debt+ s9all be liable to t9e ot9es /o t9e s9ae in t9e obligation !oes8onding to t9e0' ,##74Ati!le #2#&' T9e !edito 0a* 8o!eed against an* one o/ t9e solida* debtos o so0e o all o/ t9e0 si0)ltaneo)sl*' T9e de0and 0ade against one o/ t9e0 s9all not be an obsta!le to t9ose 9i!9 0a* s)bse?)entl* be die!ted against t9e ot9es+ so long as t9e debt 9as not been /)ll* !olle!ted' ,##77aAti!le #2#.' Pa*0ent 0ade b* one o/ t9e solida* debtos e=ting)is9es t9e obligation' I/ to o 0oe solida* debtos oe to 8a*+ t9e !edito 0a* !9oose 9i!9 oe to a!!e8t' "e 9o 0ade t9e 8a*0ent 0a* !lai0 /o0 9is !o6debtos onl* t9e s9ae 9i!9 !oes8onds to ea!9+ it9 t9e inteest /o t9e 8a*0ent alead* 0ade' I/ t9e 8a*0ent is 0ade be/oe t9e debt is d)e+ no inteest /o t9e inte$ening 8eiod 0a* be de0anded' W9en one o/ t9e solida* debtos !annot+ be!a)se o/ 9is insol$en!*+ ei0b)se 9is s9ae to t9e debto 8a*ing t9e obligation+ s)!9 s9ae s9all be bone b* all 9is !o6debtos+ in 8o8otion to t9e debt o/ ea!9' ,##7%aAti!le #2#;' Pa*0ent b* a solida* debto s9all not entitle 9i0 to ei0b)se0ent /o0 9is !o6debtos i/ s)!9 8a*0ent is 0ade a/te t9e
obligation 9as 8es!ibed o be!o0e illegal' ,nAti!le #2#<' T9e e0ission 0ade b* t9e !edito o/ t9e s9ae 9i!9 ae!ts one o/ t9e solida* debtos does not elease t9e latte /o0 9is es8onsibilit* toads t9e !o6debtos+ in !ase t9e debt 9ad been totall* 8aid b* an*one o/ t9e0 be/oe t9e e0ission as ee!ted' ,##7&aAti!le #22:' T9e e0ission o/ t9e 9ole obligation+ obtained b* one o/ t9e solida* debtos+ does not entitle 9i0 to ei0b)se0ent /o0 9is !o6 debtos' ,nAti!le #22#' I/ t9e t9ing 9as been lost o i/ t9e 8estation 9as be!o0e i08ossible it9o)t t9e /a)lt o/ t9e solida* debtos+ t9e obligation s9all be e=ting)is9ed' I/ t9ee as /a)lt on t9e 8at o/ an* one o/ t9e0+ all s9all be es8onsible to t9e !edito+ /o t9e 8i!e and t9e 8a*0ent o/ da0ages and inteest+ it9o)t 8e()di!e to t9ei a!tion against t9e g)ilt* o negligent debto' I/ t9o)g9 a /ot)ito)s e$ent+ t9e t9ing is lost o t9e 8e/o0an!e 9as be!o0e i08ossible a/te one o/ t9e solida* debtos 9as in!)ed in dela* t9o)g9 t9e ()di!ial o e=ta()di!ial de0and )8on 9i0 b* t9e !edito+ t9e 8o$isions o/ t9e 8e!eding 8aaga89 s9all a88l*' ,##7.a-
OBLIGATION AND C O N T R A C T S P a g e | 7 Ati!le #222' A solida* debto 0a*+ in a!tions led b* t9e !edito+ a$ail 9i0sel/ o/ all de/enses 9i!9 ae dei$ed /o0 t9e nat)e o/ t9e obligation and o/ t9ose 9i!9 ae 8esonal to 9i0+ o 8etain to 9is on s9ae' Wit9 es8e!t to t9ose 9i!9 8esonall* belong to t9e ot9es+ 9e 0a* a$ail 9i0sel/ t9eeo/ onl* as egads t9at 8at o/ t9e debt /o 9i!9 t9e latte ae es8onsible' ,##7;a-
SECTION % Di$isible and Indi$isible Obligations Ati!le #224' T9e di$isibilit* o indi$isibilit* o/ t9e t9ings t9at ae t9e ob(e!t o/ obligations in 9i!9 t9ee is onl* one debto and onl* one !edito does not alte o 0odi/* t9e 8o$isions o/ C9a8te 2 o/ t9is Title' ,##7ing' T9e debtos 9o 0a* 9a$e been ead* to /)lll t9ei 8o0ises s9all not !ontib)te to t9e inde0nit* be*ond t9e !oes8onding 8otion o/ t9e 8i!e o/ t9e t9ing o o/ t9e $al)e o/ t9e se$i!e in 9i !9 t9e obligation !onsists' ,##%:Ati!le #22%' o t9e 8)8oses o/ t9e 8e!eding ati!les+ obligations to gi$e denite t9ings and t9ose 9i!9 ae not
CIVIL LAW REVIEW 2
s)s!e8tible o/ 8atial 8e/o0an!e s9all be dee0ed to be indi$isible'
OBLIGATION AND C O N T R A C T S P a g e | 8
"oe$e+ e$en t9o)g9 t9e ob(e!t o se$i!e 0a* be 89*si!all* di$isible+ an obligation is indi$isible i/ so 8o$ided b* la o intended b* t9e 8aties'
Ati!le #22.' T9e debto !annot e=e08t 9i0sel/ /o0 t9e 8e/o0an!e o/ t9e obligation b* 8a*ing t9e 8enalt*+ sa$e in t9e !ase 9ee t9is ig9t 9as been e=8essl* ese$ed /o 9i0' Neit9e !an t9e !edito de0and t9e /)lll0ent o/ t9e obligation and t9e satis/a!tion o/ t9e 8enalt* at t9e sa0e ti0e+ )nless t9is ig9t 9as been !leal* ganted 9i0' "oe$e+ i/ a/te t9e !edito 9as de!ided to e?)ie t9e /)lll0ent o/ t9e obligation+ t9e 8e/o0an!e t9eeo/ s9o)ld be!o0e i08ossible it9o)t 9is /a)lt+ t9e 8enalt* 0a* be en/o!ed' ,##%4a-
In obligations not to do+ di$isibilit* o indi$isibilit* s9all be dete0ined b* t9e !9aa!te o/ t9e 8estation in ea!9 8ati!)la !ase' ,##%#a-
Ati!le #22;' Poo/ o/ a!t)al da0ages s)eed b* t9e !edito is not ne!essa* in ode t9at t9e 8enalt* 0a* be de0anded' ,n-
Ot9e !a)ses o/ e=ting)is90ent o/ obligations+ s)!9 as ann)l0ent+ es!ission+ /)lll0ent o/ a esol)to* !ondition+ and 8es!i8tion+ ae go$ened else9ee in t9is Code' ,##%&a-
SECTION &
Ati!le #22<' T9e ()dge s9all e?)itabl* ed)!e t9e 8enalt* 9en t9e 8in!i8al obligation 9as been 8atl* o ieg)lal* !o08lied it9 b* t9e debto' E$en i/ t9ee 9as been no 8e/o0an!e+ t9e 8enalt* 0a* also be ed)!ed b* t9e !o)ts i/ it is i ni?)ito)s o )n!ons!ionable' ,##%7a-
SECTION #
W9en t9e obligation 9as /o its ob(e!t t9e e=e!)tion o/ a !etain n)0be o/ da*s o/ o>+ t9e a!!o08lis90ent o/ o> b* 0eti!al )nits+ o analogo)s t9ings 9i!9 b* t9ei nat)e ae s)s!e8tible o/ 8atial 8e/o0an!e+ it s9all be di$isible'
Obligations it9 a Penal Cla)se Ati!le #22&' In obligations it9 a 8enal !la)se+ t9e 8enalt* s9all s)bstit)te t9e inde0nit* /o da0ages and t9e 8a*0ent o/ inteests in !ase o/ non!o08lian!e+ i/ t9ee is no sti8)lation to t9e !onta*' Ne$et9eless+ da0ages s9all be 8aid i/ t9e obligo e/)ses to 8a* t9e 8enalt* o is g)ilt* o/ /a)d in t9e /)lll0ent o/ t9e obligation' T9e 8enalt* 0a* be en/o!ed onl* 9en it is de0andable in a!!odan!e it9 t9e 8o$isions o/ t9is Code' ,##%2a-
Ati!le #24:' T9e n)llit* o/ t9e 8enal !la)se does not !a* it9 it t9at o/ t9e 8in!i8al obligation' T9e n)llit* o/ t9e 8in!i8al obligation !aies it9 it t9at o/ t9e 8enal !la)se' ,##%%C"APTER 7
E=ting)is90ent o/ Obligations Geneal Po$isions Ati!le #24#' Obligations ae e=ting)is9ed1 ,#- B* 8a*0ent o 8e/o0an!e3 ,2- B* t9e loss o/ t9e t9ing d)e3 ,4- B* t9e !ondonation o e0ission o/ t9e debt3 ,7- B* t9e !on/)sion o 0ege o/ t9e ig9ts o/ !edito and debto3 ,%- B* !o08ensation3 ,&- B* no$ation'
Pa*0ent o Pe/o0an!e Ati!le #242' Pa*0ent 0eans not onl* t9e deli$e* o/ 0one* b)t also t9e 8e/o0an!e+ in an* ot9e 0anne+ o/ an obligation' ,nAti!le #244' A debt s9all not be )ndestood to 9a$e been 8aid )nless t9e t9ing o se$i!e in 9i!9 t9e obligation !onsists 9as been !o08letel* deli$eed o endeed+ as t9e !ase 0a* be' ,##%.-
CIVIL LAW REVIEW 2
Ati!le #247' I/ t9e obligation 9as been s)bstantiall* 8e/o0ed in good /ait9+ t9e obligo 0a* e!o$e as t9o)g9 t9ee 9ad been a sti!t and !o08lete /)lll0ent+ less da0ages s)eed b* t9e obligee' ,nAti!le #24%' W9en t9e obligee a!!e8ts t9e 8e/o0an!e+ >noing its in!o08leteness o ieg)lait*+ and it9o)t e=8essing an* 8otest o ob(e!tion+ t9e obligation is dee0ed /)ll* !o08lied it9' ,nAti!le #24&' T9e !edito is not bo)nd to a!!e8t 8a*0ent o 8e/o0an!e b* a t9id 8eson 9o 9as no inteest in t9e /)lll0ent o/ t9e obligation+ )nless t9ee is a sti8)lation to t9e !onta*' W9oe$e 8a*s /o anot9e 0a* de0and /o0 t9e debto 9at 9e 9as 8aid+ e=!e8t t9at i/ 9e 8aid it9o)t t9e >noledge o against t9e ill o/ t9e debto+ 9e !an e!o$e onl* inso/a as t9e 8a*0ent 9as been bene!ial to t9e debto' ,##%;aAti!le #24.' W9oe$e 8a*s on be9al/ o/ t9e debto it9o)t t9e >noledge o against t9e ill o/ t9e latte+ !annot !o08el t9e !edito to s)bogate 9i0 in 9is ig9ts+ s)!9 as t9ose aising /o0 a 0otgage+ g)aant*+ o 8enalt*' ,##%
debtoHs !onsent' B)t t9e 8a*0ent is in an* !ase $alid as to t9e !edito 9o 9as a!!e8ted it' ,nAti!le #24<' In obligations to gi$e+ 8a*0ent 0ade b* one 9o does not 9a$e t9e /ee dis8osal o/ t9e t9ing d)e and !a8a!it* to alienate it s9all not be $alid+ it9o)t 8e()di!e to t9e 8o$isions o/ ati!le #72. )nde t9e Title on JNat)al Obligations'J ,##&:aAti!le #27:' Pa*0ent s9all be 0ade to t9e 8eson in 9ose /a$o t9e obligation 9as been !onstit)ted+ o 9is s)!!esso in inteest+ o an* 8eson a)t9oiFed to e!ei$e it' ,##&2aAti!le #27#' Pa*0ent to a 8eson 9o is in!a8a!itated to ad0iniste 9is 8o8et* s9all be $alid i/ 9e 9as >e8t t9e t9ing deli$eed+ o inso/a as t9e 8a*0ent 9as been bene!ial to 9i0' Pa*0ent 0ade to a t9id 8eson s9all also be $alid inso/a as it 9as edo)nded to t9e benet o/ t9e !edito' S)!9 benet to t9e !edito need not be 8o$ed in t9e /olloing !ases1 ,#- I/ a/te t9e 8a*0ent+ t9e t9id 8eson a!?)ies t9e !editoHs ig9ts3 ,2- I/ t9e !edito aties t9e 8a*0ent to t9e t9id 8eson3 ,4- I/ b* t9e !editoHs !ond)!t+ t9e debto 9as been led to belie$e t9at t9e
OBLIGATION AND C O N T R A C T S P a g e | 9 t9id 8eson 9ad a)t9oit* to e!ei$e t9e 8a*0ent' ,##&4aAti!le #272' Pa*0ent 0ade in good /ait9 to an* 8eson in 8ossession o/ t9e !edit s9all elease t9e debto' ,##&7Ati!le #274' Pa*0ent 0ade to t9e !edito b* t9e debto a/te t9e l atte 9as been ()di!iall* odeed to etain t9e debt s9all not be $alid' ,##&%Ati!le #277' T9e debto o/ a t9ing !annot !o08el t9e !edito to e!ei$e a dieent one+ alt9o)g9 t9e l atte 0a* be o/ t9e sa0e $al)e as+ o 0oe $al)able t9an t9at 9i!9 is d)e' In obligations to do o not to do+ an a!t o /obeaan!e !annot be s)bstit)ted b* anot9e a!t o / obeaan!e against t9e obligeeHs ill' ,##&&aAti!le #27%' Dation in 8a*0ent+ 9eeb* 8o8et* is alienated to t9e !edito in satis/a!tion o/ a debt in 0one*+ s9all be go$ened b* t9e la o/ sales' ,n-
CIVIL LAW REVIEW 2
Ati!le #27&' W9en t9e obligation !onsists in t9e deli$e* o/ an indete0inate o genei! t9ing+ 9ose ?)alit* and !i!)0stan!es 9a$e not been stated+ t9e !edito !annot de0and a t9ing o/ s)8eio ?)alit*' Neit9e !an t9e debto deli$e a t9ing o/ in/eio ?)alit*' T9e 8)8ose o/ t9e obligation and ot9e !i!)0stan!es s9all be ta>en into !onsideation' ,##&.a-
T9e deli$e* o/ 8o0isso* notes 8a*able to ode+ o bills o/ e=!9ange o ot9e 0e!antile do!)0ents s9all 8od)!e t9e ee!t o/ 8a*0ent onl* 9en t9e* 9a$e been !as9ed+ o 9en t9o)g9 t9e /a)lt o/ t9e !edito t9e* 9a$e been i08aied'
Ati!le #27.' nless it is ot9eise sti8)lated+ t9e e=ta()di!ial e=8enses e?)ied b* t9e 8a*0ent s9all be /o t9e a!!o)nt o/ t9e debto' Wit9 egad to ()di!ial !osts+ t9e R)les o/ Co)t s9all go$en' ,##&;a-
Ati!le #2%:' In !ase an e=taodina* ination o deation o/ t9e !)en!* sti8)lated s9o)ld s)8e$ene+ t9e $al)e o/ t9e !)en!* at t9e ti0e o/ t9e establis90ent o/ t9e obligation s9all be t9e basis o/ 8a*0ent+ )nless t9ee is an agee0ent to t9e !onta*' ,n-
Ati!le #27;' nless t9ee is an e=8ess sti8)lation to t9at ee!t+ t9e !edito !annot be !o08elled 8atiall* to e!ei$e t9e 8estations in 9i!9 t9e obligation !onsists' Neit9e 0a* t9e debto be e?)ied to 0a>e 8atial 8a*0ents' "oe$e+ 9en t9e debt is in 8at li?)idated and in 8at )nli?)idated+ t9e !edito 0a* de0and and t9e debto 0a* ee!t t9e 8a*0ent o/ t9e /o0e it9o)t aiting /o t9e li?)idation o/ t9e latte' ,##&
In t9e 0eanti0e+ t9e a!tion dei$ed /o0 t9e oiginal obligation s9all be 9eld in t9e abe*an!e' ,##.:-
Ati!le #2%#' Pa*0ent s9all be 0ade in t9e 8la!e designated in t9e obligation' T9ee being no e=8ess sti8)lation and i/ t9e )ndeta>ing is to deli$e a dete0inate t9ing+ t9e 8a*0ent s9all be 0ade 9ee$e t9e t9ing 0ig9t be at t9e 0o0ent t9e obligation as !onstit)ted' In an* ot9e !ase t9e 8la!e o/ 8a*0ent s9all be t9e do0i!ile o/ t9e debto' I/ t9e debto !9anges 9is do0i!ile in bad /ait9 o a/te 9e 9as in!)ed in dela*+ t9e additional e=8enses s9all be bone b* 9i0'
OBLIGATION AND C O N T R A C T S P a g e | 10 T9ese 8o$isions ae it9o)t 8e()di!e to $en)e )nde t9e R)les o/ Co)t' ,##.#aSBSECTION #' A88li!ation o/ Pa*0ents Ati!le #2%2' "e 9o 9as $aio)s debts o/ t9e sa0e >ind in /a$o o/ one and t9e sa0e !edito+ 0a* de!lae at t9e ti0e o/ 0a>ing t9e 8a*0ent+ to 9i!9 o/ t9e0 t9e sa0e 0)st be a88lied' nless t9e 8aties so sti8)late+ o 9en t9e a88li!ation o/ 8a*0ent is 0ade b* t9e 8at* /o 9ose benet t9e te0 9as been !onstit)ted+ a88li!ation s9all not be 0ade as to debts 9i!9 ae not *et d)e' I/ t9e debto a!!e8ts /o0 t9e !edito a e!ei8t in 9i!9 an a88li!ation o/ t9e 8a*0ent is 0ade+ t9e /o0e !annot !o08lain o/ t9e sa0e+ )nless t9ee is a !a)se /o in$alidating t9e !onta!t' ,##.2aAti!le #2%4' I/ t9e debt 8od)!es inteest+ 8a*0ent o/ t9e 8in!i8al s9all not be dee0ed to 9a$e been 0ade )ntil t9e inteests 9a$e been !o$eed' ,##.4-
CIVIL LAW REVIEW 2
Ati!le #2%7' W9en t9e 8a*0ent !annot be a88lied in a!!odan!e it9 t9e 8e!eding )les+ o i/ a88li!ation !an not be in/eed /o0 ot9e !i!)0stan!es+ t9e debt 9i!9 is 0ost oneo)s to t9e debto+ a0ong t9ose d)e+ s9all be dee0ed to 9a$e been satised'
I/ t9e debts d)e ae o/ t9e sa0e nat)e and b)den+ t9e 8a*0ent s9all be a88lied to all o/ t9e0 8o8otionatel*' ,##.7a-
Consignation alone s9all 8od)!e t9e sa0e ee!t in t9e /olloing !ases1 ,#- W9en t9e !edito is absent o )n>non+ o does not a88ea at t9e 8la!e o/ 8a*0ent3 ,2- W9en 9e is in!a8a!itated to e!ei$e t9e 8a*0ent at t9e ti0e it is d)e3 ,4- W9en+ it9o)t ()st !a)se+ 9e e/)ses to gi$e a e!ei8t3 ,7- W9en to o 0oe 8esons !lai0 t9e sa0e ig9t to !olle!t3
SBSECTION 2' Pa*0ent b* Cession Ati!le #2%%' T9e debto 0a* !ede o assign 9is 8o8et* to 9is !editos in 8a*0ent o/ 9is debts' T9is !ession+ )nless t9ee is sti8)lation to t9e !onta*+ s9all onl* elease t9e debto /o0 es8onsibilit* /o t9e net 8o!eeds o/ t9e t9ing assigned' T9e agee0ents 9i!9+ on t9e ee!t o/ t9e !ession+ ae 0ade beteen t9e debto and 9is !editos s9all be go$ened b* s8e!ial las' ,##.%aSBSECTION 4' Tende o/ Pa*0ent and Consignation Ati!le #2%&' I/ t9e !edito to 9o0 tende o/ 8a*0ent 9as been 0ade e/)ses it9o)t ()st !a)se to a!!e8t it+ t9e debto s9all be eleased /o0 es8onsibilit* b* t9e !onsignation o/ t9e t9ing o s)0 d)e'
,%- W9en t9e title o/ t9e obligation 9as been lost' ,##.&aAti!le #2%.' In ode t9at t9e !onsignation o/ t9e t9ing d)e 0a* elease t9e obligo+ it 0)st st be anno)n!ed to t9e 8esons inteested in t9e /)lll0ent o/ t9e obligation' T9e !onsignation s9all be inee!t)al i/ it is not 0ade sti!tl* in !onsonan!e it9 t9e 8o$isions 9i!9 eg)late 8a*0ent' ,##..Ati!le #2%;' Consignation s9all be 0ade b* de8ositing t9e t9ings d)e at t9e dis8osal o/ ()di!ial a)t9oit*+ be/oe 9o0 t9e tende o/ 8a*0ent s9all be 8o$ed+ in a 8o8e !ase+ and t9e anno)n!e0ent o/ t9e !onsignation in ot9e !ases'
OBLIGATION AND C O N T R A C T S P a g e | 11 T9e !onsignation 9a$ing been 0ade+ t9e inteested 8aties s9all also be notied t9eeo/' ,##.;Ati!le #2%<' T9e e=8enses o/ !onsignation+ 9en 8o8el* 0ade+ s9all be !9aged against t9e !edito' ,##. t9e ()dge to ode t9e !an!ellation o/ t9e obligation' Be/oe t9e !edito 9as a!!e8ted t9e !onsignation+ o be/oe a ()di!ial de!laation t9at t9e !onsignation 9as been 8o8el* 0ade+ t9e debto 0a* it9da t9e t9ing o t9e s)0 de8osited+ alloing t9e obligation to e0ain in /o!e' ,##;:Ati!le #2&#' I/+ t9e !onsignation 9a$ing been 0ade+ t9e !edito s9o)ld a)t9oiFe t9e debto to it9da t9e sa0e+ 9e s9all lose e$e* 8e/een!e 9i!9 9e 0a* 9a$e o$e t9e t9ing' T9e !o6debtos+ g)aantos and s)eties s9all be eleased' ,##;#a-
SECTION 2 Loss o/ t9e T9ing D)e Ati!le #2&2' An obligation 9i!9 !onsists in t9e deli$e* o/ a dete0inate t9ing s9all be e=ting)is9ed i/ it s9o)ld be lost o
CIVIL LAW REVIEW 2
desto*ed it9o)t t9e /a)lt o/ t9e debto+ and be/oe 9e 9as in!)ed in dela*' W9en b* la o sti8)lation+ t9e obligo is liable e$en /o /ot)ito)s e$ents+ t9e loss o/ t9e t9ing does not e=ting)is9 t9e obligation+ and 9e s9all be es8onsible /o da0ages' T9e sa0e )le a88lies 9en t9e nat)e o/ t9e obligation e?)ies t9e ass)08tion o/ is>' ,##;2aAti!le #2&4' In an obligation to deli$e a genei! t9ing+ t9e loss o dest)!tion o/ an*t9ing o/ t9e sa0e >ind does not e=ting)is9 t9e obligation' ,nAti!le #2&7' T9e !o)ts s9all dete0ine 9et9e+ )nde t9e !i!)0stan!es+ t9e 8atial loss o/ t9e ob(e!t o/ t9e obligation is so i08otant as to e=ting)is9 t9e obligation' ,nAti!le #2&%' W9ene$e t9e t9ing is lost in t9e 8ossession o/ t9e debto+ it s9all be 8es)0ed t9at t9e loss as d)e to 9is /a)lt+ )nless t9ee is 8oo/ to t9e !onta*+ and it9o)t 8e()di!e to t9e 8o$isions o/ ati!le ##&%' T9is 8es)08tion does not a88l* in !ase o/ eat9?)a>e+ ood+ sto0+ o ot9e nat)al !ala0it*' ,##;4aAti!le #2&&' T9e debto in obligations to do s9all also be eleased 9en t9e 8estation be!o0es legall* o 89*si!all* i08ossible it9o)t t9e /a)lt o/ t9e obligo' ,##;7a-
Ati!le #2&.' W9en t9e se$i!e 9as be!o0e so di!)lt as to be 0ani/estl* be*ond t9e !onte08lation o/ t9e 8aties+ t9e obligo 0a* also be eleased t9ee/o0+ in 9ole o in 8at' ,nAti!le #2&;' W9en t9e debt o/ a t9ing !etain and dete0inate 8o!eeds /o0 a !i0inal oense+ t9e debto s9all not be e=e08ted /o0 t9e 8a*0ent o/ its 8i!e+ 9ate$e 0a* be t9e !a)se /o t9e loss+ )nless t9e t9ing 9a$ing been oeed b* 9i0 to t9e 8eson 9o s9o)ld e!ei$e it+ t9e latte e/)sed it9o)t ()sti!ation to a!!e8t it' ,##;%Ati!le #2&<' T9e obligation 9a$ing been e=ting)is9ed b* t9e loss o/ t9e t9ing+ t9e !edito s9all 9a$e all t9e ig9ts o/ a!tion 9i!9 t9e debto 0a* 9a$e against t9id 8esons b* eason o/ t9e loss' ,##;&-
SECTION 4
OBLIGATION AND C O N T R A C T S P a g e | 12 !o08l* it9 t9e /o0s o/ donation' ,##;.Ati!le #2.#' T9e deli$e* o/ a 8i$ate do!)0ent e$iden!ing a !edit+ 0ade $ol)ntail* b* t9e !edito to t9e debto+ i08lies t9e en)n!iation o/ t9e a!tion 9i!9 t9e /o0e 9ad against t9e latte' I/ in ode to n)lli/* t9is ai$e it s9o)ld be !lai0ed to be ino!io)s+ t9e debto and 9is 9eis 0a* )89old it b* 8o$ing t9at t9e deli$e* o/ t9e do!)0ent as 0ade in $it)e o/ 8a*0ent o/ t9e debt' ,##;;Ati!le #2.2' W9ene$e t9e 8i$ate do!)0ent in 9i!9 t9e debt a88eas is /o)nd in t9e 8ossession o/ t9e debto+ it s9all be 8es)0ed t9at t9e !edito deli$eed it $ol)ntail*+ )nless t9e !onta* is 8o$ed' ,##;
Condonation o Re0ission o/ t9e Debt Ati!le #2.:' Condonation o e0ission is essentiall* gat)ito)s+ and e?)ies t9e a!!e8tan!e b* t9e obligo' It 0a* be 0ade e=8essl* o i08liedl*' One and t9e ot9e >ind s9all be s)b(e!t to t9e )les 9i!9 go$en ino!io)s donations' E=8ess !ondonation s9all+ /)t9e0oe+
Ati!le #2.7' It is 8es)0ed t9at t9e a!!esso* obligation o/ 8ledge 9as been e0itted 9en t9e t9ing 8ledged+ a/te its deli$e* to t9e !edito+ is /o)nd in t9e 8ossession o/ t9e debto+ o o/ a t9id 8eson 9o ons t9e t9ing' ,##<#a-
CIVIL LAW REVIEW 2
SECTION 7 Con/)sion o ege o/ Rig9ts Ati!le #2.%' T9e obligation is e=ting)is9ed /o0 t9e ti0e t9e !9aa!tes o/ !edito and debto ae 0eged in t9e sa0e 8eson' ,##<2aAti!le #2.&' ege 9i!9 ta>es 8la!e in t9e 8eson o/ t9e 8in!i8al debto o !edito benets t9e g)aantos' Con/)sion 9i!9 ta>es 8la!e in t9e 8eson o/ an* o/ t9e latte does not e=ting)is9 t9e obligation' ,##<4Ati!le #2..' Con/)sion does not e=ting)is9 a (oint obligation e=!e8t as egads t9e s9ae !oes8onding to t9e !edito o debto in 9o0 t9e to !9aa!tes !on!)' ,##<7-
,2- T9at bot9 debts !onsist in a s)0 o/ 0one*+ o i/ t9e t9ings d)e ae !ons)0able+ t9e* be o/ t9e sa0e >ind+ and also o/ t9e sa0e ?)alit* i/ t9e latte 9as been stated3
Ati!le #2;7' W9en one o bot9 debts ae es!issible o $oidable+ t9e* 0a* be !o08ensated against ea!9 ot9e be/oe t9e* ae ()di!iall* es!inded o a$oided' ,n-
,4- T9at t9e to debts be d)e3
Ati!le #2;%' T9e debto 9o 9as !onsented to t9e assign0ent o/ ig9ts 0ade b* a !edito in /a$o o/ a t9id 8eson+ !annot set )8 against t9e assignee t9e !o08ensation 9i!9 o)ld 8etain to 9i0 against t9e assigno+ )nless t9e assigno as notied b* t9e debto at t9e ti0e 9e ga$e 9is !onsent+ t9at 9e ese$ed 9is ig9t to t9e !o08ensation'
,7- T9at t9e* be li?)idated and de0andable3 ,%- T9at o$e neit9e o/ t9e0 t9ee be an* etention o !onto$es*+ !o00en!ed b* t9id 8esons and !o00)ni!ated in d)e ti0e to t9e debto' ,##<&Ati!le #2;:' Notit9standing t9e 8o$isions o/ t9e 8e!eding ati!le+ t9e g)aanto 0a* set )8 !o08ensation as egads 9at t9e !edito 0a* oe t9e 8in!i8al debto' ,##<.-
SECTION % Co08ensation Ati!le #2.;' Co08ensation s9all ta>e 8la!e 9en to 8esons+ in t9ei on ig9t+ ae !editos and debtos o/ ea!9 ot9e' ,##<%Ati!le #2.<' In ode t9at !o08ensation 0a* be 8o8e+ it is ne!essa*1 ,#- T9at ea!9 one o/ t9e obligos be bo)nd 8in!i8all*+ and t9at 9e be at t9e sa0e ti0e a 8in!i8al !edito o/ t9e ot9e3
OBLIGATION AND C O N T R A C T S P a g e | 13
Ati!le #2;#' Co08ensation 0a* be total o 8atial' W9en t9e to debts ae o/ t9e sa0e a0o)nt+ t9ee is a total !o08ensation' ,nAti!le #2;2' T9e 8aties 0a* agee )8on t9e !o08ensation o/ debts 9i!9 ae not *et d)e' ,nAti!le #2;4' I/ one o/ t9e 8aties to a s)it o$e an obligation 9as a !lai0 /o da0ages against t9e ot9e+ t9e /o0e 0a* set it o b* 8o$ing 9is ig9t to said da0ages and t9e a0o)nt t9eeo/' ,n-
I/ t9e !edito !o00)ni!ated t9e !ession to 9i0 b)t t9e debto did not !onsent t9eeto+ t9e latte 0a* set )8 t9e !o08ensation o/ debts 8e$io)s to t9e !ession+ b)t not o/ s)bse?)ent ones' I/ t9e assign0ent is 0ade it9o)t t9e >noledge o/ t9e debto+ 9e 0a* set )8 t9e !o08ensation o/ all !edits 8io to t9e sa0e and also late ones )ntil 9e 9ad >noledge o/ t9e assign0ent' ,##<;aAti!le #2;&' Co08ensation ta>es 8la!e b* o8eation o/ la+ e$en t9o)g9 t9e debts 0a* be 8a*able at dieent 8la!es+ b)t t9ee s9all be an inde0nit* /o e=8enses o/ e=!9ange o tans8otation to t9e 8la!e o/ 8a*0ent' ,##<
CIVIL LAW REVIEW 2
Ati!le #2;.' Co08ensation s9all not be 8o8e 9en one o/ t9e debts aises /o0 a de8osit)0 o /o0 t9e obligations o/ a de8osita* o o/ a bailee in !o00odat)0'
,#- C9anging t9ei ob(e!t o 8in!i8al !onditions3
Neit9e !an !o08ensation be set )8 against a !edito 9o 9as a !lai0 /o s)88ot d)e b* gat)ito)s title+ it9o)t 8e()di!e to t9e 8o$isions o/ 8aaga89 2 o/ ati!le 4:#' ,#2::a-
,4- S)bogating a t9id 8eson in t9e ig9ts o/ t9e !edito' ,#2:4-
Ati!le #2;;' Neit9e s9all t9ee be !o08ensation i/ one o/ t9e debts !onsists in !i$il liabilit* aising /o0 a 8enal oense' ,nAti!le #2;<' I/ a 8eson s9o)ld 9a$e against 9i0 se$eal debts 9i!9 ae s)s!e8tible o/ !o08ensation+ t9e )les on t9e a88li!ation o/ 8a*0ents s9all a88l* to t9e ode o/ t9e !o08ensation' ,#2:#Ati!le #2<:' W9en all t9e e?)isites 0entioned in ati!le #2.< ae 8esent+ !o08ensation ta>es ee!t b* o8eation o/ la+ and e=ting)is9es bot9 debts to t9e !on!)ent a0o)nt+ e$en t9o)g9 t9e !editos and debtos ae not aae o/ t9e !o08ensation' ,#2:2aSECTION & No$ation Ati!le #2<#' Obligations 0a* be 0odied b*1
,2- S)bstit)ting t9e 8eson o/ t9e debto3
Ati!le #2<2' In ode t9at an obligation 0a* be e=ting)is9ed b* anot9e 9i!9 s)bstit)te t9e sa0e+ it is i08eati$e t9at it be so de!laed in )ne?)i$o!al te0s+ o t9at t9e old and t9e ne obligations be on e$e* 8oint in!o08atible it9 ea!9 ot9e' ,#2:7Ati!le #2<4' No$ation 9i!9 !onsists in s)bstit)ting a ne debto in t9e 8la!e o/ t9e oiginal one+ 0a* be 0ade e$en it9o)t t9e >noledge o against t9e ill o/ t9e l atte+ b)t not it9o)t t9e !onsent o/ t9e !edito' Pa*0ent b* t9e ne debto gi$es 9i0 t9e ig9ts 0entioned in ati!les #24& and #24.' ,#2:%aAti!le #2<7' I/ t9e s)bstit)tion is it9o)t t9e >noledge o against t9e ill o/ t9e debto+ t9e ne debtoHs insol$en!* o non6/)lll0ent o/ t9e obligations s9all not gi$e ise to an* liabilit* on t9e 8at o/ t9e oiginal debto' ,nAti!le #2<%' T9e insol$en!* o/ t9e ne debto+ 9o 9as been 8o8osed b* t9e oiginal debto and a!!e8ted b* t9e !edito+ s9all not e$i$e t9e a!tion o/ t9e latte against t9e oiginal
OBLIGATION AND C O N T R A C T S P a g e | 14 obligo+ e=!e8t 9en said insol$en!* as alead* e=isting and o/ 8)bli! >noledge+ o >non to t9e debto+ 9en t9e delegated 9is debt' ,#2:&aAti!le #2<&' W9en t9e 8in!i8al obligation is e=ting)is9ed in !onse?)en!e o/ a no$ation+ a!!esso* obligations 0a* s)bsist onl* inso/a as t9e* 0a* benet t9id 8esons 9o did not gi$e t9ei !onsent' ,#2:.Ati!le #2<.' I/ t9e ne obligation is $oid+ t9e oiginal one s9all s)bsist+ )nless t9e 8aties intended t9at t9e /o0e elation s9o)ld be e=ting)is9ed in an* e$ent' ,nAti!le #2<;' T9e no$ation is $oid i/ t9e oiginal obligation as $oid+ e=!e8t 9en ann)l0ent 0a* be !lai0ed onl* b* t9e debto o 9en ati!ation $alidates a!ts 9i!9 ae $oidable' ,#2:;aAti!le #2<<' I/ t9e oiginal obligation as s)b(e!t to a s)s8ensi$e o esol)to* !ondition+ t9e ne obligation s9all be )nde t9e sa0e !ondition+ )nless it is ot9eise sti8)lated' ,nAti!le #4::' S)bogation o/ a t9id 8eson in t9e ig9ts o/ t9e !edito is eit9e legal o !on$entional' T9e /o0e is not 8es)0ed+ e=!e8t in !ases e=8essl* 0entioned in t9is Code3 t9e latte 0)st be !leal* establis9ed in ode t9at it 0a* ta>e ee!t' ,#2:
CIVIL LAW REVIEW 2
Ati!le #4:#' Con$entional s)bogation o/ a t9id 8eson e?)ies t9e !onsent o/ t9e oiginal 8aties and o/ t9e t9id 8eson' ,n-
TITLE II CONTRACTS
Ati!le #4:2' It is 8es)0ed t9at t9ee is legal s)bogation1 ,#- W9en a !edito 8a*s anot9e !edito 9o is 8e/eed+ e$en it9o)t t9e debtoHs >noledge3 ,2- W9en a t9id 8eson+ not inteested in t9e obligation+ 8a*s it9 t9e e=8ess o ta!it a88o$al o/ t9e debto3 ,4- W9en+ e$en it9o)t t9e >noledge o/ t9e debto+ a 8eson inteested in t9e /)lll0ent o/ t9e obligation 8a*s+ it9o)t 8e()di!e to t9e ee!ts o/ !on/)sion as to t9e l atteHs s9ae' ,#2#:aAti!le #4:4' S)bogation tans/es to t9e 8esons s)bogated t9e !edit it9 all t9e ig9ts t9eeto a88etaining+ eit9e against t9e debto o against t9id 8eson+ be t9e* g)aantos o 8ossessos o/ 0otgages+ s)b(e!t to sti8)lation in a !on$entional s)bogation' ,#2#2aAti!le #4:7' A !edito+ to 9o0 8atial 8a*0ent 9as been 0ade+ 0a* e=e!ise 9is ig9t /o t9e e0ainde+ and 9e s9all be 8e/eed to t9e 8eson 9o 9as been s)bogated in 9is 8la!e in $it)e o/ t9e 8atial 8a*0ent o/ t9e sa0e !edit' ,#2#4-
C"APTER # Geneal Po$isions Ati!le #4:%' A !onta!t is a 0eeting o/ 0inds beteen to 8esons 9eeb* one binds 9i0sel/+ it9 es8e!t to t9e ot9e+ to gi$e so0et9ing o to ende so0e se$i!e' ,#2%7aAti!le #4:&' T9e !onta!ting 8aties 0a* establis9 s)!9 sti8)lations+ !la)ses+ te0s and !onditions as t9e* 0a* dee0 !on$enient+ 8o$ided t9e* ae not !onta* to la+ 0oals+ good !)sto0s+ 8)bli! ode+ o 8)bli! 8oli!*' ,#2%%aAti!le #4:.' Inno0inate !onta!ts s9all be eg)lated b* t9e sti8)lations o/ t9e 8aties+ b* t9e 8o$isions o/ Titles I and II o/ t9is Boo>+ b* t9e )les go$ening t9e 0ost analogo)s no0inate !onta!ts+ and b* t9e !)sto0s o/ t9e 8la!e' ,nAti!le #4:;' T9e !onta!t 0)st bind bot9 !onta!ting 8aties3 its $alidit* o !o08lian!e !annot be le/t to t9e ill o/ one o/ t9e0' ,#2%&a-
OBLIGATION AND C O N T R A C T S P a g e | 15 Ati!le #4:<' T9e dete0ination o/ t9e 8e/o0an!e 0a* be le/t to a t9id 8eson+ 9ose de!ision s9all not be binding )ntil it 9as been 0ade >non to bot9 !onta!ting 8aties' ,nAti!le #4#:' T9e dete0ination s9all not be obligato* i/ it is e$identl* ine?)itable' In s)!9 !ase+ t9e !o)ts s9all de!ide 9at is e?)itable )nde t9e !i!)0stan!es' ,nAti!le #4##' Conta!ts ta>e ee!t onl* beteen t9e 8aties+ t9ei assigns and 9eis+ e=!e8t in !ase 9ee t9e ig9ts and obligations aising /o0 t9e !onta!t ae not tans0issible b* t9ei nat)e+ o b* sti8)lation o b* 8o$ision o/ la' T9e 9ei is not liable be*ond t9e $al)e o/ t9e 8o8et* 9e e!ei$ed /o0 t9e de!edent' I/ a !onta!t s9o)ld !ontain so0e sti8)lation in /a$o o/ a t9id 8eson+ 9e 0a* de0and its /)lll0ent 8o$ided 9e !o00)ni!ated 9is a!!e8tan!e to t9e obligo be/oe its e$o!ation' A 0ee in!idental benet o inteest o/ a 8eson is not s)!ient' T9e !onta!ting 8aties 0)st 9a$e !leal* and delibeatel* !on/eed a /a$o )8on a t9id 8eson' ,#2%.aAti!le #4#2' In !onta!ts !eating eal ig9ts+ t9id 8esons 9o !o0e i nto 8ossession o/ t9e ob(e!t o/ t9e !onta!t ae bo)nd t9eeb*+ s)b(e!t to t9e 8o$isions o/ t9e otgage La and t9e Land Registation Las' ,n-
CIVIL LAW REVIEW 2
Ati!le #4#4' Ceditos ae 8ote!ted in !ases o/ !onta!ts intended to de/a)d t9e0' ,n-
Essential Re?)isites o/ Conta!ts
Ati!le #4#7' An* t9id 8eson 9o ind)!es anot9e to $iolate 9is !onta!t s9all be liable /o da0ages to t9e ot9e !onta!ting 8at*' ,n-
Ati!le #4#;' T9ee is no !onta!t )nless t9e /olloing e?)isites !on!)1 ,#- Consent o/ t9e !onta!ting 8aties3 ,2- Ob(e!t !etain 9i!9 is t9e s)b(e!t 0atte o/ t9e !onta!t3 ,4- Ca)se o/ t9e obligation 9i!9 is establis9ed' ,#2&#-
Ati!le #4#%' Conta!ts ae 8e/e!ted b* 0ee !onsent+ and /o0 t9at 0o0ent t9e 8aties ae bo)nd not onl* to t9e /)lll0ent o/ 9at 9as been e=8essl* sti8)lated b)t also to all t9e !onse?)en!es 9i!9+ a!!oding to t9ei nat)e+ 0a* be in >ee8ing it9 good /ait9+ )sage and la' ,#2%;Ati!le #4#&' Real !onta!ts+ s)!9 as de8osit+ 8ledge and !o00odat)0+ ae not 8e/e!ted )ntil t9e deli$e* o/ t9e ob(e!t o/ t9e obligation' ,nAti!le #4#.' No one 0a* !onta!t in t9e na0e o/ anot9e it9o)t being a)t9oiFed b* t9e latte+ o )nless 9e 9as b* la a ig9t to e8esent 9i0' A !onta!t enteed into in t9e na0e o/ anot9e b* one 9o 9as no a)t9oit* o legal e8esentation+ o 9o 9as a!ted be*ond 9is 8oes+ s9all be )nen/o!eable+ )nless it is atied+ e=8essl* o i08liedl*+ b* t9e 8eson on 9ose be9al/ it 9as been e=e!)ted+ be/oe it is e$o>ed b* t9e ot9e !onta!ting 8at*' ,#2%
OBLIGATION AND C O N T R A C T S P a g e | 16 0anne o/ a!!e8tan!e+ all o/ 9i!9 0)st be !o08lied it9' ,n-
Geneal Po$isions Ati!le #422' An oe 0ade t9o)g9 an agent is a!!e8ted /o0 t9e ti0e a!!e8tan!e is !o00)ni!ated to 9i0' ,nAti!le #424' An oe be!o0es inee!ti$e )8on t9e deat9+ !i$il intedi!tion+ insanit*+ o insol$en!* o/ eit9e 8at* be/oe a!!e8tan!e is !on$e*ed' ,n-
SECTION # Consent Ati!le #4#<' Consent is 0ani/ested b* t9e 0eeting o/ t9e oe and t9e a!!e8tan!e )8on t9e t9ing and t9e !a)se 9i!9 ae to !onstit)te t9e !onta!t' T9e oe 0)st be !etain and t9e a!!e8tan!e absol)te' A ?)alied a!!e8tan!e !onstit)tes a !o)nte6oe' A!!e8tan!e 0ade b* lette o telega0 does not bind t9e oee e=!e8t /o0 t9e ti0e it !a0e to 9is >noledge' T9e !onta!t+ in s)!9 a !ase+ is 8es)0ed to 9a$e been enteed into in t9e 8la!e 9ee t9e oe as 0ade' ,#2&2aAti!le #42:' An a!!e8tan!e 0a* be e=8ess o i08lied' ,nAti!le #42#' T9e 8eson 0a>ing t9e oe 0a* = t9e ti0e+ 8la!e+ and
Ati!le #427' W9en t9e oee 9as alloed t9e oeee a !etain 8eiod to a!!e8t+ t9e oe 0a* be it9dan at an* ti0e be/oe a!!e8tan!e b* !o00)ni!ating s)!9 it9daal+ e=!e8t 9en t9e o8tion is /o)nded )8on a !onsideation+ as so0et9ing 8aid o 8o0ised' ,nAti!le #42%' nless it a88eas ot9eise+ b)siness ad$etise0ents o/ t9ings /o sale ae not denite oes+ b)t 0ee in$itations to 0a>e an oe' ,nAti!le #42&' Ad$etise0ents /o biddes ae si08l* in$itations to 0a>e 8o8osals+ and t9e ad$etise is not bo)nd to a!!e8t t9e 9ig9est o loest bidde+ )nless t9e !onta* a88eas' ,nAti!le #42.' T9e /olloing !annot gi$e !onsent to a !onta!t1 ,#- ne0an!i8ated 0inos3
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,2- Insane o de0ented 8esons+ and dea/60)tes 9o do not >no 9o to ite' ,#2&4aAti!le #42;' Conta!ts enteed into d)ing a l)!id inte$al ae $alid' Conta!ts ageed to in a state o/ d)n>enness o d)ing a 9*8noti! s8ell ae $oidable' ,nAti!le #42<' T9e in!a8a!it* de!laed in ati!le #42. is s)b(e!t to t9e 0odi!ations dete0ined b* la+ and is )ndestood to be i t9o)t 8e()di!e to s8e!ial dis?)ali!ations establis9ed in t9e las' ,#2&7-
Ati!le #442' W9en one o/ t9e 8aties is )nable to ead+ o i/ t9e !onta!t is in a lang)age not )ndestood b* 9i0+ and 0ista>e o /a)d is alleged+ t9e 8eson en/o!ing t9e !onta!t 0)st s9o t9at t9e te0s t9eeo/ 9a$e been /)ll* e=8lained to t9e /o0e' ,nAti!le #444' T9ee is no 0ista>e i/ t9e 8at* alleging it >ne t9e do)bt+ !ontingen!* o is> ae!ting t9e ob(e!t o/ t9e !onta!t' ,nAti!le #447' )t)al eo as to t9e legal ee!t o/ an agee0ent 9en t9e eal 8)8ose o/ t9e 8aties is /)stated+ 0a* $itiate !onsent' ,n-
Ati!le #44:' A !onta!t 9ee !onsent is gi$en t9o)g9 0ista>e+ $iolen!e+ inti0idation+ )nd)e in)en!e+ o /a)d is $oidable' ,#2&%a-
Ati!le #44%' T9ee is $iolen!e 9en in ode to est !onsent+ seio)s o iesistible /o!e is e08lo*ed'
Ati!le #44#' In ode t9at 0ista>e 0a* in$alidate !onsent+ it s9o)ld e/e to t9e s)bstan!e o/ t9e t9ing 9i!9 is t9e ob(e!t o/ t9e !onta!t+ o to t9ose !onditions 9i!9 9a$e 8in!i8all* 0o$ed one o bot9 8aties to ente into t9e !onta!t'
T9ee is inti0idation 9en one o/ t9e !onta!ting 8aties is !o08elled b* a easonable and ell6go)nded /ea o/ an i00inent and ga$e e$il )8on 9i s 8eson o 8o8et*+ o )8on t9e 8eson o 8o8et* o/ 9is s8o)se+ des!endants o as!endants+ to gi$e 9is !onsent'
ista>e as to t9e identit* o ?)ali!ations o/ one o/ t9e 8aties ill $itiate !onsent onl* 9en s)!9 identit* o ?)ali!ations 9a$e been t9e 8in!i8al !a)se o/ t9e !onta!t'
To dete0ine t9e degee o/ inti0idation+ t9e age+ se= and !ondition o/ t9e 8eson s9all be bone in 0ind'
A si08le 0ista>e o/ a!!o)nt s9all gi$e ise to its !oe!tion' ,#2&&a-
A t9eat to en/o!e oneHs !lai0 t9o)g9 !o08etent a)t9oit*+ i/ t9e !lai0 is ()st o legal+ does not $itiate !onsent' ,#2&.a-
OBLIGATION AND C O N T R A C T S P a g e | 17 Ati!le #44&' Violen!e o inti0idation s9all ann)l t9e obligation+ alt9o)g9 it 0a* 9a$e been e08lo*ed b* a t9id 8eson 9o did not ta>e 8at in t9e !onta!t' ,#2&;Ati!le #44.' T9ee is )nd)e in)en!e 9en a 8eson ta>es i08o8e ad$antage o/ 9is 8oe o$e t9e ill o/ anot9e+ de8i$ing t9e latte o/ a easonable /eedo0 o/ !9oi!e' T9e /olloing !i!)0stan!es s9all be !onsideed1 t9e !ondential+ /a0il*+ s8iit)al and ot9e elations beteen t9e 8aties+ o t9e /a!t t9at t9e 8eson alleged to 9a$e been )nd)l* in)en!ed as s)eing /o0 0ental ea>ness+ o as ignoant o in nan!ial distess' ,nAti!le #44;' T9ee is /a)d 9en+ t9o)g9 insidio)s ods o 0a!9inations o/ one o/ t9e !onta!ting 8aties+ t9e ot9e is ind)!ed to ente into a !onta!t 9i!9+ it9o)t t9e0+ 9e o)ld not 9a$e ageed to' ,#2&no t9e /a!ts+ ae not in t9e0sel$es /a)d)lent' ,nAti!le #47#' A 0ee e=8ession o/ an o8inion does not signi/* /a)d+ )nless
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0ade b* an e=8et and t9e ot9e 8at* 9as elied on t9e /o0eHs s8e!ial >noledge' ,nAti!le #472' ise8esentation b* a t9id 8eson does not $itiate !onsent+ )nless s)!9 0ise8esentation 9as !eated s)bstantial 0ista>e and t9e sa0e is 0)t)al' ,nAti!le #474' ise8esentation 0ade in good /ait9 is not /a)d)lent b)t 0a* !onstit)te eo' ,nAti!le #477' In ode t9at /a)d 0a* 0a>e a !onta!t $oidable+ it s9o)ld be seio)s and s9o)ld not 9a$e been e08lo*ed b* bot9 !onta!ting 8aties' In!idental /a)d onl* obliges t9e 8eson e08lo*ing it to 8a* da0ages' ,#2.:Ati!le #47%' Si0)lation o/ a !onta!t 0a* be absol)te o elati$e' T9e /o0e ta>es 8la!e 9en t9e 8aties do not intend to be bo)nd at all3 t9e latte+ 9en t9e 8aties !on!eal t9ei t)e agee0ent' ,nAti!le #47&' An absol)tel* si0)lated o !titio)s !onta!t is $oid' A elati$e si0)lation+ 9en it does not 8e()di!e a t9id 8eson and is not intended /o an* 8)8ose !onta* to la+ 0oals+ good !)sto0s+ 8)bli! ode o 8)bli! 8oli!* binds t9e 8aties to t9ei eal agee0ent' ,nSECTION 2
Ob(e!t o/ Conta!ts Ati!le #47.' All t9ings 9i!9 ae not o)tside t9e !o00e!e o/ 0en+ in!l)ding /)t)e t9ings+ 0a* be t9e ob(e!t o/ a !onta!t' All ig9ts 9i!9 ae not intans0issible 0a* also be t9e ob(e!t o/ !onta!ts' No !onta!t 0a* be enteed into )8on /)t)e in9eitan!e e=!e8t in !ases e=8essl* a)t9oiFed b* la' All se$i!es 9i!9 ae not !onta* to la+ 0oals+ good !)sto0s+ 8)bli! ode o 8)bli! 8oli!* 0a* li>eise be t9e ob(e!t o/ a !onta!t' ,#2.#aAti!le #47;' I08ossible t9ings o se$i!es !annot be t9e ob(e!t o/ !onta!ts' ,#2.2Ati!le #47<' T9e ob(e!t o/ e$e* !onta!t 0)st be dete0inate as to its >ind' T9e /a!t t9at t9e ?)antit* is not dete0inate s9all not be an obsta!le to t9e e=isten!e o/ t9e !onta!t+ 8o$ided it is 8ossible to dete0ine t9e sa0e+ it9o)t t9e need o/ a ne !onta!t beteen t9e 8aties' ,#2.4SECTION 4
OBLIGATION AND C O N T R A C T S P a g e | 18 se$i!e o benet 9i!9 is e0)neated3 and in !onta!ts o/ 8)e bene!en!e+ t9e 0ee libealit* o/ t9e bene/a!to' ,#2.7Ati!le #4%#' T9e 8ati!)la 0oti$es o/ t9e 8aties in enteing into a !onta!t ae dieent /o0 t9e !a)se t9eeo/' ,nAti!le #4%2' Conta!ts it9o)t !a)se+ o it9 )nla/)l !a)se+ 8od)!e no ee!t 9ate$e' T9e !a)se is )nla/)l i/ it is !onta* to la+ 0oals+ good !)sto0s+ 8)bli! ode o 8)bli! 8oli!*' ,#2.%aAti!le #4%4' T9e state0ent o/ a /alse !a)se in !onta!ts s9all ende t9e0 $oid+ i/ it s9o)ld not be 8o$ed t9at t9e* ee /o)nded )8on anot9e !a)se 9i!9 is t)e and la/)l' ,#2.&Ati!le #4%7' Alt9o)g9 t9e !a)se is not stated in t9e !onta!t+ it is 8es)0ed t9at it e=ists and is la/)l+ )nless t9e debto 8o$es t9e !onta*' ,#2..Ati!le #4%%' E=!e8t in !ases s8e!ied b* la+ lesion o i nade?)a!* o/ !a)se s9all not in$alidate a !onta!t+ )nless t9ee 9as been /a)d+ 0ista>e o )nd)e in)en!e' ,n-
Ca)se o/ Conta!ts C"APTER 4 Ati!le #4%:' In oneo)s !onta!ts t9e !a)se is )ndestood to be+ /o ea!9 !onta!ting 8at*+ t9e 8estation o 8o0ise o/ a t9ing o se$i!e b* t9e ot9e3 in e0)neato* ones+ t9e
o0 o/ Conta!ts Ati!le #4%&' Conta!ts s9all be obligato*+ in 9ate$e /o0 t9e* 0a*
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9a$e been enteed into+ 8o$ided all t9e essential e?)isites /o t9ei $alidit* ae 8esent' "oe$e+ 9en t9e la e?)ies t9at a !onta!t be in so0e /o0 in ode t9at it 0a* be $alid o en/o!eable+ o t9at a !onta!t be 8o$ed in a !etain a*+ t9at e?)ie0ent is absol)te and indis8ensable' In s)!9 !ases+ t9e ig9t o/ t9e 8aties stated in t9e /olloing ati!le !annot be e=e!ised' ,#2.;aAti!le #4%.' I/ t9e la e?)ies a do!)0ent o ot9e s8e!ial /o0+ as in t9e a!ts and !onta!ts en)0eated in t9e /olloing ati!le+ t9e !onta!ting 8aties 0a* !o08el ea!9 ot9e to obse$e t9at /o0+ on!e t9e !onta!t 9as been 8e/e!ted' T9is ig9t 0a* be e=e!ised si0)ltaneo)sl* it9 t9e a!tion )8on t9e !onta!t' ,#2.
ob(e!t an a!t a88eaing o 9i!9 s9o)ld a88ea in a 8)bli! do!)0ent+ o s9o)ld 8e()di!e a t9id 8eson3 ,7- T9e !ession o/ a!tions o ig9ts 8o!eeding /o0 an a!t a88eaing in a 8)bli! do!)0ent' All ot9e !onta!ts 9ee t9e a0o)nt in$ol$ed e=!eeds $e 9)nded 8esos 0)st a88ea in iting+ e$en a 8i$ate one' B)t sales o/ goods+ !9attels o t9ings in a!tion ae go$ened b* ati!les+ #7:4+ No' 2 and #7:%' ,#2;:aC"APTER 7 Re/o0ation o/ Inst)0ents ,nAti!le #4%<' W9en+ t9ee 9a$ing been a 0eeting o/ t9e 0inds o/ t9e 8aties to a !onta!t+ t9ei t)e intention is not e=8essed in t9e inst)0ent 8)8oting to e0bod* t9e agee0ent+ b* eason o/ 0ista>e+ /a)d+ ine?)itable !ond)!t o a!!ident+ one o/ t9e 8aties 0a* as> /o t9e e/o0ation o/ t9e inst)0ent to t9e end t9at s)!9 t)e intention 0a* be e=8essed' I/ 0ista>e+ /a)d+ ine?)itable !ond)!t+ o a!!ident 9as 8e$ented a 0eeting o/ t9e 0inds o/ t9e 8aties+ t9e 8o8e e0ed* is not e/o0ation o/ t9e inst)0ent b)t ann)l0ent o/ t9e !onta!t'
OBLIGATION AND C O N T R A C T S P a g e | 19 Ati!le #4&:' T9e 8in!i8les o/ t9e geneal la on t9e e/o0ation o/ inst)0ents ae 9eeb* ado8ted inso/a as t9e* ae not in !oni!t it9 t9e 8o$isions o/ t9is Code' Ati!le #4&#' W9en a 0)t)al 0ista>e o/ t9e 8aties !a)ses t9e /ail)e o/ t9e inst)0ent to dis!lose t9ei eal agee0ent+ said inst)0ent 0a* be e/o0ed' Ati!le #4&2' I/ one 8at* as 0ista>en and t9e ot9e a!ted /a)d)lentl* o ine?)itabl* in s)!9 a a* t9at t9e inst)0ent does not s9o t9ei t)e intention+ t9e /o0e 0a* as> /o t9e e/o0ation o/ t9e inst)0ent' Ati!le #4&4' W9en one 8at* as 0ista>en and t9e ot9e >ne o belie$ed t9at t9e inst)0ent did not state t9ei eal agee0ent+ b)t !on!ealed t9at /a!t /o0 t9e /o0e+ t9e inst)0ent 0a* be e/o0ed' Ati!le #4&7' W9en t9o)g9 t9e ignoan!e+ la!> o/ s>ill+ negligen!e o bad /ait9 on t9e 8at o/ t9e 8eson da/ting t9e inst)0ent o o/ t9e !le> o t*8ist+ t9e inst)0ent does not e=8ess t9e t)e intention o/ t9e 8aties+ t9e !o)ts 0a* ode t9at t9e inst)0ent be e/o0ed' Ati!le #4&%' I/ to 8aties agee )8on t9e 0otgage o 8ledge o/ eal o 8esonal 8o8et*+ b)t t9e inst)0ent states t9at t9e 8o8et* is sold
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absol)tel* o it9 a ig9t o/ e8)!9ase+ e/o0ation o/ t9e inst)0ent is 8o8e' Ati!le #4&&' T9ee s9all be no e/o0ation in t9e /olloing !ases1 ,#- Si08le donations inte $i$os 9eein no !ondition is i 08osed3 ,2- Wills3 ,4- W9en t9e eal agee0ent is $oid' Ati!le #4&.' W9en one o/ t9e 8aties 9as bo)g9t an a!tion to en/o!e t9e inst)0ent+ 9e !annot s)bse?)entl* as> /o its e/o0ation' Ati!le #4&;' Re/o0ation 0a* be odeed at t9e instan!e o/ eit9e 8at* o 9is s)!!essos in inteest+ i/ t9e 0ista>e as 0)t)al3 ot9eise+ )8on 8etition o/ t9e in()ed 8at*+ o 9is 9eis and assigns' Ati!le #4&<' T9e 8o!ed)e /o t9e e/o0ation o/ inst)0ent s9all be go$ened b* )les o/ !o)t to be 8o0)lgated b* t9e S)8e0e Co)t' C"APTER % Inte8etation o/ Conta!ts Ati!le #4.:' I/ t9e te0s o/ a !onta!t ae !lea and lea$e no do)bt )8on t9e intention o/ t9e !onta!ting 8aties+
t9e liteal 0eaning o/ its sti8)lations s9all !ontol' I/ t9e ods a88ea to be !onta* to t9e e$ident intention o/ t9e 8aties+ t9e latte s9all 8e$ail o$e t9e /o0e' ,#2;#Ati!le #4.#' In ode to ()dge t9e intention o/ t9e !onta!ting 8aties+ t9ei !onte08oaneo)s and s)bse?)ent a!ts s9all be 8in!i8all* !onsideed' ,#2;2Ati!le #4.2' "oe$e geneal t9e te0s o/ a !onta!t 0a* be+ t9e* s9all not be )ndestood to !o08e9end t9ings t9at ae distin!t and !ases t9at ae dieent /o0 t9ose )8on 9i!9 t9e 8aties intended to agee' ,#2;4Ati!le #4.4' I/ so0e sti8)lation o/ an* !onta!t s9o)ld ad0it o/ se$eal 0eanings+ it s9all be )ndestood as beaing t9at i08ot 9i!9 is 0ost ade?)ate to ende it ee!t)al' ,#2;7Ati!le #4.7' T9e $aio)s sti8)lations o/ a !onta!t s9all be inte8eted toget9e+ attib)ting to t9e do)bt/)l ones t9at sense 9i!9 0a* es)lt /o0 all o/ t9e0 ta>en (ointl*' ,#2;%Ati!le #4.%' Wods 9i!9 0a* 9a$e dieent signi!ations s9all be )ndestood in t9at 9i!9 is 0ost in >ee8ing it9 t9e nat)e and ob(e!t o/ t9e !onta!t' ,#2;&-
OBLIGATION AND C O N T R A C T S P a g e | 20 Ati!le #4.&' T9e )sage o !)sto0 o/ t9e 8la!e s9all be bone in 0ind in t9e inte8etation o/ t9e a0big)ities o/ a !onta!t+ and s9all ll t9e o0ission o/ sti8)lations 9i!9 ae odinail* establis9ed' ,#2;.Ati!le #4..' T9e inte8etation o/ obs!)e ods o sti8)lations in a !onta!t s9all not /a$o t9e 8at* 9o !a)sed t9e obs!)it*' ,#2;;Ati!le #4.;' W9en it is absol)tel* i08ossible to settle do)bts b* t9e )les establis9ed in t9e 8e!eding ati!les+ and t9e do)bts e/e to in!idental !i!)0stan!es o/ a gat)ito)s !onta!t+ t9e least tans0ission o/ ig9ts and i nteests s9all 8e$ail' I/ t9e !onta!t is oneo)s+ t9e do)bt s9all be settled in /a$o o/ t9e geatest e!i8o!it* o/ inteests' I/ t9e do)bts ae !ast )8on t9e 8in!i8al ob(e!t o/ t9e !onta!t in s)!9 a a* t9at it !annot be >non 9at 0a* 9a$e been t9e intention o ill o/ t9e 8aties+ t9e !onta!t s9all be n)ll and $oid' ,#2;eise be obse$ed in t9e !onst)!tion o/ !onta!ts' ,nC"APTER & Res!issible Conta!ts
CIVIL LAW REVIEW 2
Ati!le #4;:' Conta!ts $alidl* ageed )8on 0a* be es!inded in t9e !ases establis9ed b* la' ,#2<:Ati!le #4;#' T9e /olloing !onta!ts ae es!issible1 ,#- T9ose 9i!9 ae enteed into b* g)adians 9ene$e t9e ads 9o0 t9e* e8esent s)e lesion b* 0oe t9an one6/o)t9 o/ t9e $al)e o/ t9e t9ings 9i!9 ae t9e ob(e!t t9eeo/3 ,2- T9ose ageed )8on in e8esentation o/ absentees+ i/ t9e latte s)e t9e lesion stated in t9e 8e!eding n)0be3 ,4- T9ose )ndeta>en in /a)d o/ !editos 9en t9e latte !annot in an* ot9e 0anne !olle!t t9e !lai0s d)e t9e03 ,7- T9ose 9i!9 e/e to t9ings )nde litigation i/ t9e* 9a$e been enteed into b* t9e de/endant it9o)t t9e >noledge and a88o$al o/ t9e litigants o o/ !o08etent ()di!ial a)t9oit*3 ,%- All ot9e !onta!ts s8e!iall* de!laed b* la to be s)b(e!t to es!ission' ,#2<#aAti!le #4;2' Pa*0ents 0ade in a state o/ insol$en!* /o obligations to 9ose /)lll0ent t9e debto !o)ld not be !o08elled at t9e ti0e t9e* ee ee!ted+ ae also es!issible' ,#2<2-
Ati!le #4;4' T9e a!tion /o es!ission is s)bsidia*3 it !annot be instit)ted e=!e8t 9en t9e 8at* s)eing da0age 9as no ot9e legal 0eans to obtain e8aation /o t9e sa0e' ,#2<7Ati!le #4;7' Res!ission s9all be onl* to t9e e=tent ne!essa* to !o$e t9e da0ages !a)sed' ,nAti!le #4;%' Res!ission !eates t9e obligation to et)n t9e t9ings 9i!9 ee t9e ob(e!t o/ t9e !onta!t+ toget9e it9 t9ei /)its+ and t9e 8i!e it9 its inteest3 !onse?)entl*+ it !an be !aied o)t onl* 9en 9e 9o de0ands es!ission !an et)n 9ate$e 9e 0a* be obliged to estoe' Neit9e s9all es!ission ta>e 8l a!e 9en t9e t9ings 9i!9 ae t9e ob(e!t o/ t9e !onta!t ae legall* in t9e 8ossession o/ t9id 8esons 9o did not a!t in bad /ait9' In t9is !ase+ inde0nit* /o da0ages 0a* be de0anded /o0 t9e 8eson !a)sing t9e loss' ,#2<%Ati!le #4;&' Res!ission e/eed to in Nos' # and 2 o/ ati!le #4;# s9all not ta>e 8la!e it9 es8e!t to !onta!ts a88o$ed b* t9e !o)ts' ,#2<&aAti!le #4;.' All !onta!ts b* $it)e o/ 9i!9 t9e debto alienates 8o8et* b* gat)ito)s title ae 8es)0ed to 9a$e been enteed into in /a)d o/ !editos+ 9en t9e dono did not ese$e
OBLIGATION AND C O N T R A C T S P a g e | 21 s)!ient 8o8et* to 8a* all debts !onta!ted be/oe t9e donation' Alienations b* oneo)s title ae also 8es)0ed /a)d)lent 9en 0ade b* 8esons against 9o0 so0e ()dg0ent 9as been endeed in an* instan!e o so0e it o/ atta!90ent 9as been iss)ed' T9e de!ision o atta!90ent need not e/e to t9e 8o8et* alienated+ and need not 9a$e been obtained b* t9e 8at* see>ing t9e es!ission' In addition to t9ese 8es)08tions+ t9e design to de/a)d !editos 0a* be 8o$ed in an* ot9e 0anne e!ogniFed b* t9e la o/ e$iden!e' ,#2<.aAti!le #4;;' W9oe$e a!?)ies in bad /ait9 t9e t9ings alienated in /a)d o/ !editos+ s9all inde0ni/* t9e latte /o da0ages s)eed b* t9e0 on a!!o)nt o/ t9e alienation+ 9ene$e+ d)e to an* !a)se+ it s9o)ld be i08ossible /o 9i0 to et)n t9e0' I/ t9ee ae to o 0oe alienations+ t9e st a!?)ie s9all be liable st+ and so on s)!!essi$el*' ,#2<;aAti!le #4;<' T9e a!tion to !lai0 es!ission 0)st be !o00en!ed it9in /o) *eas'
CIVIL LAW REVIEW 2
o 8esons )nde g)adians9i8 and /o absentees+ t9e 8eiod o/ /o) *eas s9all not begin )ntil t9e te0ination o/ t9e /o0eHs in!a8a!it*+ o )ntil t9e do0i!ile o/ t9e latte is >non' ,#2<
And 9en t9e a!tion e/es to !onta!ts enteed into b* 0inos o ot9e in!a8a!itated 8esons+ /o0 t9e ti0e t9e g)adians9i8 !eases' ,#4:#aAti!le #4<2' Rati!ation e=ting)is9es t9e a!tion to ann)l a $oidable !onta!t' ,#4:
Voidable Conta!ts Ati!le #4<:' T9e /olloing !onta!ts ae $oidable o ann)llable+ e$en t9o)g9 t9ee 0a* 9a$e been no da0age to t9e !onta!ting 8aties1 ,#- T9ose 9ee one o/ t9e 8aties is in!a8able o/ gi$ing !onsent to a !onta!t3 ,2- T9ose 9ee t9e !onsent is $itiated b* 0ista>e+ $iolen!e+ inti0idation+ )nd)e in)en!e o /a)d' T9ese !onta!ts ae binding+ )nless t9e* ae ann)lled b* a 8o8e a!tion in !o)t' T9e* ae s)s!e8tible o/ ati!ation' ,nAti!le #4<#' T9e a!tion /o ann)l0ent s9all be bo)g9t it9in /o) *eas' T9is 8eiod s9all begin1 In !ases o/ inti0idation+ $iolen!e o )nd)e in)en!e+ /o0 t9e ti0e t9e de/e!t o/ t9e !onsent !eases' In !ase o/ 0ista>e o /a)d+ /o0 t9e ti0e o/ t9e dis!o$e* o/ t9e sa0e'
Ati!le #4<4' Rati!ation 0a* be ee!ted e=8essl* o ta!itl*' It is )ndestood t9at t9ee is a ta!it ati!ation i/+ it9 >noledge o/ t9e eason 9i!9 endes t9e !onta!t $oidable and s)!9 eason 9a$ing !eased+ t9e 8eson 9o 9as a ig9t to in$o>e it s9o)ld e=e!)te an a!t 9i!9 ne!essail* i08lies an intention to ai$e 9is ig9t' ,#4##aAti!le #4<7' Rati!ation 0a* be ee!ted b* t9e g)adian o/ t9e in!a8a!itated 8eson' ,nAti!le #4<%' Rati!ation does not e?)ie t9e !on/o0it* o/ t9e !onta!ting 8at* 9o 9as no ig9t to bing t9e a!tion /o ann)l0ent' ,#4#2Ati!le #4<&' Rati!ation !leanses t9e !onta!t /o0 all its de/e!ts / o0 t9e 0o0ent it as !onstit)ted' ,#4#4Ati!le #4<.' T9e a!tion /o t9e ann)l0ent o/ !onta!ts 0a* be instit)ted b* all 9o ae t9eeb* obliged 8in!i8all* o s)bsidiail*' "oe$e+ 8esons 9o ae !a8able !annot allege t9e in!a8a!it* o/ t9ose it9 9o0 t9e* !onta!ted3 no !an
OBLIGATION AND C O N T R A C T S P a g e | 22 t9ose 9o e=eted inti0idation+ $iolen!e+ o )nd)e in)en!e+ o e08lo*ed /a)d+ o !a)sed 0ista>e base t9ei a!tion )8on t9ese as o/ t9e !onta!t' ,#4:2aAti!le #4<;' An obligation 9a$ing been ann)lled+ t9e !onta!ting 8aties s9all estoe to ea!9 ot9e t9e t9ings 9i!9 9a$e been t9e s)b(e!t 0atte o/ t9e !onta!t+ it9 t9ei /)its+ and t9e 8i!e it9 its inteest+ e=!e8t in !ases 8o$ided b* la' In obligations to ende se$i!e+ t9e $al)e t9eeo/ s9all be t9e basis /o da0ages' ,#4:4aAti!le #4<<' W9en t9e de/e!t o/ t9e !onta!t !onsists in t9e in!a8a!it* o/ one o/ t9e 8aties+ t9e in!a8a!itated 8eson is not obliged to 0a>e an* estit)tion e=!e8t inso/a as 9e 9as been beneted b* t9e t9ing o 8i!e e!ei$ed b* 9i0' ,#4:7Ati!le #7::' W9ene$e t9e 8eson obliged b* t9e de!ee o/ ann)l0ent to et)n t9e t9ing !an not do so be!a)se it 9as been lost t9o)g9 9is /a)lt+ 9e s9all et)n t9e /)its e!ei$ed and t9e $al)e o/ t9e t9ing at t9e ti0e o/ t9e loss+ it9 inteest /o0 t9e sa0e date' ,#4:.a-
CIVIL LAW REVIEW 2
Ati!le #7:#' T9e a!tion /o ann)l0ent o/ !onta!ts s9all be e=ting)is9ed 9en t9e t9ing 9i!9 is t9e ob(e!t t9eeo/ is lost t9o)g9 t9e /a)d o /a)lt o/ t9e 8eson 9o 9as a ig9t to instit)te t9e 8o!eedings' I/ t9e ig9t o/ a!tion is based )8on t9e in!a8a!it* o/ an* one o/ t9e !onta!ting 8aties+ t9e loss o/ t9e t9ing s9all not be an obsta!le to t9e s)!!ess o/ t9e a!tion+ )nless said loss too> 8la!e t9o)g9 t9e /a)d o /a)lt o/ t9e 8lainti' ,#4#7aAti!le #7:2' As long as one o/ t9e !onta!ting 8aties does not estoe 9at in $it)e o/ t9e de!ee o/ ann)l0ent 9e is bo)nd to et)n+ t9e ot9e !annot be !o08elled to !o08l* it9 9at is in!)0bent )8on 9i0' ,#4:;C"APTER ; nen/o!eable Conta!ts ,nAti!le #7:4' T9e /olloing !onta!ts ae )nen/o!eable+ )nless t9e* ae atied1 ,#- T9ose enteed into in t9e na0e o/ anot9e 8eson b* one 9o 9as been gi$en no a)t9oit* o legal e8esentation+ o 9o 9as a!ted be*ond 9is 8oes3 ,2- T9ose t9at do not !o08l* it9 t9e Stat)te o/ a)ds as set /ot9 in t9is n)0be' In t9e /olloing !ases an
agee0ent 9eea/te 0ade s9all be )nen/o!eable b* a!tion+ )nless t9e sa0e+ o so0e note o 0e0oand)0+ t9eeo/+ be in iting+ and s)bs!ibed b* t9e 8at* !9aged+ o b* 9is agent3 e$iden!e+ t9ee/oe+ o/ t9e agee0ent !annot be e!ei$ed it9o)t t9e iting+ o a se!onda* e$iden!e o/ its !ontents1 ,a- An agee0ent t9at b* its te0s is not to be 8e/o0ed it9in a *ea /o0 t9e 0a>ing t9eeo/3 ,b- A s8e!ial 8o0ise to anse /o t9e debt+ de/a)lt+ o 0is!aiage o/ anot9e3 ,!- An agee0ent 0ade in !onsideation o/ 0aiage+ ot9e t9an a 0)t)al 8o0ise to 0a*3 ,d- An agee0ent /o t9e sale o/ goods+ !9attels o t9ings in a!tion+ at a 8i!e not less t9an $e 9)nded 8esos+ )nless t9e b)*e a!!e8t and e!ei$e 8at o/ s)!9 goods and !9attels+ o t9e e$iden!es+ o so0e o/ t9e0+ o/ s)!9 t9ings in a!tion o 8a* at t9e ti 0e so0e 8at o/ t9e 8)!9ase 0one*3 b)t 9en a sale is 0ade b* a)!tion and ent* is 0ade b* t9e a)!tionee in 9is sales boo>+ at t9e ti0e o/ t9e sale+ o/ t9e a0o)nt and >ind o/ 8o8et* sold+ te0s o/ sale+ 8i!e+ na0es o/ t9e 8)!9ases and 8eson on 9ose a!!o)nt t9e sale is 0ade+ it is a s)!ient 0e0oand)03
OBLIGATION AND C O N T R A C T S P a g e | 23 ,e- An agee0ent /o t9e leasing /o a longe 8eiod t9an one *ea+ o /o t9e sale o/ eal 8o8et* o o/ an inteest t9eein3 , / - A e8esentation as to t9e !edit o/ a t9id 8eson' ,4- T9ose 9ee bot9 8aties ae in!a8able o/ gi$ing !onsent to a !onta!t' Ati!le #7:7' na)t9oiFed !onta!ts ae go$ened b* ati!le #4#. and t9e 8in!i8les o/ agen!* in Title @ o/ t9is Boo>' Ati!le #7:%' Conta!ts in/inging t9e Stat)te o/ a)ds+ e/eed to in No' 2 o/ ati!le #7:4+ ae atied b* t9e /ail)e to ob(e!t to t9e 8esentation o/ oal e$iden!e to 8o$e t9e sa0e+ o b* t9e a!!e8tan!e o/ benet )nde t9e0' Ati!le #7:&' W9en a !onta!t is en/o!eable )nde t9e Stat)te o/ a)ds+ and a 8)bli! do!)0ent is ne!essa* /o its egistation in t9e Regist* o/ Deeds+ t9e 8aties 0a* a$ail t9e0sel$es o/ t9e ig9t )nde Ati!le #4%.' Ati!le #7:.' In a !onta!t 9ee bot9 8aties ae in!a8able o/ gi$ing !onsent+ e=8ess o i08lied ati!ation b* t9e 8aent+ o g)adian+ as t9e !ase 0a* be+ o/ one o/ t9e !onta!ting 8aties s9all gi$e t9e !onta!t t9e sa0e ee!t as i/ onl* one o/ t9e0 ee in!a8a!itated'
CIVIL LAW REVIEW 2
I/ ati!ation is 0ade b* t9e 8aents o g)adians+ as t9e !ase 0a* be+ o/ bot9 !onta!ting 8aties+ t9e !onta!t s9all be $alidated /o0 t9e i n!e8tion' Ati!le #7:;' nen/o!eable !onta!ts !annot be assailed b* t9id 8esons' C"APTER <
,.- T9ose e=8essl* 8o9ibited o de!laed $oid b* la' T9ese !onta!ts !annot be atied' Neit9e !an t9e ig9t to set )8 t9e de/ense o/ illegalit* be ai$ed' Ati!le #7#:' T9e a!tion o de/ense /o t9e de!laation o/ t9e ine=isten!e o/ a !onta!t does not 8es!ibe'
Void and Ine=istent Conta!ts Ati!le #7:<' T9e /olloing !onta!ts ae ine=istent and $oid /o0 t9e beginning1 ,#- T9ose 9ose !a)se+ ob(e!t o 8)8ose is !onta* to la+ 0oals+ good !)sto0s+ 8)bli! ode o 8)bli! 8oli!*3 ,2- T9ose 9i!9 ae absol)tel* si0)lated o !titio)s3 ,4- T9ose 9ose !a)se o ob(e!t did not e=ist at t9e ti0e o/ t9e tansa!tion3 ,7- T9ose 9ose ob(e!t is o)tside t9e !o00e!e o/ 0en3 ,%- T9ose 9i!9 !onte08late an i08ossible se$i!e3 ,&- T9ose 9ee t9e intention o/ t9e 8aties elati$e to t9e 8in!i8al ob(e!t o/ t9e !onta!t !annot be as!etained3
Ati!le #7##' W9en t9e n)llit* 8o!eeds /o0 t9e illegalit* o/ t9e !a)se o ob(e!t o/ t9e !onta!t+ and t9e a!t !onstit)tes a !i0inal oense+ bot9 8aties being in 8ai deli!to+ t9e* s9all 9a$e no a!tion against ea!9 ot9e+ and bot9 s9all be 8ose!)ted' oeo$e+ t9e 8o$isions o/ t9e Penal Code elati$e to t9e dis8osal o/ ee!ts o inst)0ents o/ a !i0e s9all be a88li!able to t9e t9ings o t9e 8i!e o/ t9e !onta!t' T9is )le s9all be a88li!able 9en onl* one o/ t9e 8aties is g)ilt*3 b)t t9e inno!ent one 0a* !lai0 9at 9e 9as gi$en+ and s9all not be bo)nd to !o08l* it9 9is 8o0ise' ,#4:%Ati!le #7#2' I/ t9e a!t in 9i!9 t9e )nla/)l o /obidden !a)se !onsists does not !onstit)te a !i0inal oense+ t9e /olloing )les s9all be obse$ed1 ,#- W9en t9e /a)lt is on t9e 8at o/ bot9 !onta!ting 8aties+ neit9e 0a* e!o$e 9at 9e 9as gi$en b* $it)e o/ t9e !onta!t+ o de0and t9e
OBLIGATION AND C O N T R A C T S P a g e | 24 8e/o0an!e o/ t9e ot9eHs )ndeta>ing3 ,2- W9en onl* one o/ t9e !onta!ting 8aties is at /a)lt+ 9e !annot e!o$e 9at 9e 9as gi$en b* eason o/ t9e !onta!t+ o as> /o t9e /)lll0ent o/ 9at 9as been 8o0ised 9i0' T9e ot9e+ 9o is not at /a)lt+ 0a* de0and t9e et)n o/ 9at 9e 9as gi$en it9o)t an* obligation to !o08l* 9is 8o0ise' ,#4:&Ati!le #7#4' Inteest 8aid in e=!ess o/ t9e inteest alloed b* t9e )s)* las 0a* be e!o$eed b* t9e debto+ i t9 inteest t9eeon /o0 t9e date o/ t9e 8a*0ent' Ati!le #7#7' W9en 0one* is 8aid o 8o8et* deli$eed /o an illegal 8)8ose+ t9e !onta!t 0a* be e8)diated b* one o/ t9e 8aties be/oe t9e 8)8ose 9as been a!!o08lis9ed+ o be/oe an* da0age 9as been !a)sed to a t9id 8eson' In s)!9 !ase+ t9e !o)ts 0a*+ i/ t9e 8)bli! inteest ill t9)s be s)bse$ed+ allo t9e 8at* e8)diating t9e !onta!t to e!o$e t9e 0one* o 8o8et*' Ati!le #7#%' W9ee one o/ t9e 8aties to an illegal !onta!t is in!a8able o/ gi$ing !onsent+ t9e !o)ts 0a*+ i/ t9e inteest o/ ()sti!e so de0ands allo e!o$e* o/ 0one* o 8o8et* deli$eed b* t9e in!a8a!itated 8eson'
CIVIL LAW REVIEW 2
Ati!le #7#&' W9en t9e agee0ent is not illegal 8e se b)t i s 0eel* 8o9ibited+ and t9e 8o9ibition b* t9e la is designed /o t9e 8ote!tion o/ t9e 8lainti+ 9e 0a*+ i/ 8)bli! 8oli!* is t9eeb* en9an!ed+ e!o$e 9at 9e 9as 8aid o deli$eed'
8esons 9ose inteests ae not die!tl* ae!ted'
8eson+ t9e obligo !annot e!o$e 9at 9e 9as 8aid'
Ati!le #722' A !onta!t 9i!9 is t9e die!t es)lt o/ a 8e$io)s illegal !onta!t+ is also $oid and ine=istent'
Ati!le #72&' W9en a 0ino beteen eig9teen and tent*6one *eas o/ age 9o 9as enteed into a !onta!t it9o)t t9e !onsent o/ t9e 8aent o g)adian+ a/te t9e ann)l0ent o/ t9e !onta!t $ol)ntail* et)ns t9e 9ole t9ing o 8i!e e!ei$ed+ notit9standing t9e /a!t t9at 9e 9as not been beneted t9eeb*+ t9ee is no ig9t to de0and t9e t9ing o 8i!e t9)s et)ned'
TITLE III Ati!le #7#.' W9en t9e 8i!e o/ an* ati!le o !o00odit* is dete0ined b* stat)te+ o b* a)t9oit* o/ la+ an* 8eson 8a*ing an* a0o)nt in e=!ess o/ t9e 0a=i0)0 8i!e alloed 0a* e!o$e s)!9 e=!ess' Ati!le #7#;' W9en t9e la =es+ o a)t9oiFes t9e =ing o/ t9e 0a=i0)0 n)0be o/ 9o)s o/ labo+ and a !onta!t is enteed into 9eeb* a laboe )ndeta>es to o> longe t9an t9e 0a=i0)0 t9)s =ed+ 9e 0a* de0and additional !o08ensation /o se$i!e endeed be*ond t9e ti0e li0it' Ati!le #7#<' W9en t9e la sets+ o a)t9oiFes t9e setting o/ a 0ini0)0 age /o laboes+ and a !onta!t is ageed )8on b* 9i!9 a laboe a!!e8ts a loe age+ 9e s9all be entitled to e!o$e t9e de!ien!*' Ati!le #72:' In !ase o/ a di$i sible !onta!t+ i/ t9e illegal te0s !an be se8aated /o0 t9e legal ones+ t9e latte 0a* be en/o!ed' Ati!le #72#' T9e de/ense o/ illegalit* o/ !onta!t is not a$ailable to t9id
OBLIGATION AND C O N T R A C T S P a g e | 25
NATRAL OBLIGATIONS Ati!le #724' Obligations ae !i$il o nat)al' Ci$il obligations gi$e a ig9t o/ a!tion to !o08el t9ei 8e/o0an!e' Nat)al obligations+ not being based on 8ositi$e la b)t on e?)it* and nat)al la+ do not gant a ig9t o/ a!tion to en/o!e t9ei 8e/o0an!e+ b)t a/te $ol)nta* /)lll0ent b* t9e obligo+ t9e* a)t9oiFe t9e etention o/ 9at 9as been deli$eed o endeed b* eason t9eeo/' So0e nat)al obligations ae set /ot9 in t9e /olloing ati!les' Ati!le #727' W9en a ig9t to s)e )8on a !i$il obligation 9as la8sed b* e=tin!ti$e 8es!i8tion+ t9e obligo 9o $ol)ntail* 8e/o0s t9e !onta!t !annot e!o$e 9at 9e 9as deli$eed o t9e $al)e o/ t9e se$i!e 9e 9as endeed' Ati!le #72%' W9en it9o)t t9e >noledge o against t9e ill o/ t9e debto+ a t9id 8eson 8a*s a debt 9i!9 t9e obligo is not legall* bo)nd to 8a* be!a)se t9e a!tion t9eeon 9as 8es!ibed+ b)t t9e debto late $ol)ntail* ei0b)ses t9e t9id
Ati!le #72.' W9en a 0ino beteen eig9teen and tent*6one *eas o/ age+ 9o 9as enteed into a !onta!t it9o)t t9e !onsent o/ t9e 8aent o g)adian+ $ol)ntail* 8a*s a s)0 o/ 0one* o deli$es a /)ngible t9ing i n /)lll0ent o/ t9e obligation+ t9ee s9all be no ig9t to e!o$e t9e sa0e /o0 t9e obligee 9o 9as s8ent o !ons)0ed it in good /ait9' ,##&:AAti!le #72;' W9en+ a/te an a!tion to en/o!e a !i$il obligation 9as /ailed t9e de/endant $ol)ntail* 8e/o0s t9e obligation+ 9e !annot de0and t9e et)n o/ 9at 9e 9as deli$eed o t9e 8a*0ent o/ t9e $al)e o/ t9e se$i!e 9e 9as endeed' Ati!le #72<' W9en a testate o intestate 9ei $ol)ntail* 8a*s a debt o/ t9e de!edent e=!eeding t9e $al)e o/ t9e 8o8et* 9i!9 9e e!ei$ed b* ill o b* t9e la o/ intesta!* /o0 t9e estate o/ t9e de!eased+ t9e 8a*0ent
CIVIL LAW REVIEW 2
is $alid and !annot be es!inded b* t9e 8a*e'
s)!9 title 8asses b* o8eation o/ la to t9e b)*e o gantee'
Ati!le #74:' W9en a ill is de!laed $oid be!a)se it 9as not been e=e!)ted in a!!odan!e it9 t9e /o0alities e?)ied b* la+ b)t one o/ t9e intestate 9eis+ a/te t9e settle0ent o/ t9e debts o/ t9e de!eased+ 8a*s a lega!* in !o08lian!e it9 a !la)se in t9e de/e!ti$e ill+ t9e 8a*0ent is ee!ti$e and ie$o!able'
Ati!le #74%' I/ a 8eson in e8esentation o/ anot9e sells o alienates a t9ing+ t9e /o0e !annot s)bse?)entl* set )8 9is on title as against t9e b)*e o gantee'
TITLE IV ESTOPPEL ,nAti!le #74#' T9o)g9 esto88el an ad0ission o e8esentation is endeed !on!l)si$e )8on t9e 8eson 0a>ing it+ and !annot be denied o dis8o$ed as against t9e 8eson el*ing t9eeon' Ati!le #742' T9e 8in!i8les o/ esto88el ae 9eeb* ado8ted inso/a as t9e* ae not in !oni!t it9 t9e 8o$isions o/ t9is Code+ t9e Code o/ Co00e!e+ t9e R)les o/ Co)t and s8e!ial las' Ati!le #744' Esto88el 0a* in 8ais o b* deed' Ati!le #747' W9en a 8eson 9o is not t9e one o/ a t9ing sells o alienates and deli$es it+ and late t9e selle o ganto a!?)ies title t9eeto+
Ati!le #74&' A lessee o a bailee is esto88ed /o0 asseting title to t9e t9ing leased o e!ei$ed+ as against t9e lesso o bailo' Ati!le #74.' W9en in a !onta!t beteen t9id 8esons !on!ening i00o$able 8o8et*+ one o/ t9e0 is 0isled b* a 8eson it9 es8e!t to t9e ones9i8 o eal ig9t o$e t9e eal estate+ t9e latte is 8 e!l)ded /o0 asseting 9is legal title o inteest t9eein+ 8o$ided all t9ese e?)isites ae 8esent1 ,#- T9ee 0)st be / a)d)lent e8esentation o ong/)l !on!eal0ent o/ /a!ts >non to t9e 8at* esto88ed3 ,2- T9e 8at* 8e!l)ded 0)st i ntend t9at t9e ot9e s9o)ld a!t )8on t9e /a!ts as 0ise8esented3 ,4- T9e 8at* 0isled 0)st 9a$e been )naae o/ t9e t)e /a!ts3 and ,7- T9e 8at* de/a)ded 0)st 9a$e a!ted in a!!odan!e it9 t9e 0ise8esentation'
OBLIGATION AND C O N T R A C T S P a g e | 26 Ati!le #74;' One 9o 9as alloed anot9e to ass)0e a88aent ones9i8 o/ 8esonal 8o8et* /o t9e 8)8ose o/ 0a>ing an* tans/e o/ it+ !annot+ i/ 9e e!ei$ed t9e s)0 /o 9i!9 a 8ledge 9as been !onstit)ted+ set )8 9is on title to de/eat t9e 8ledge o/ t9e 8o8et*+ 0ade b* t9e ot9e to a 8ledgee 9o e!ei$ed t9e sa0e in good /ait9 and /o $al)e' Ati!le #74<' Esto88el is ee!ti$e onl* as beteen t9e 8aties t9eeto o t9ei s)!!essos in inteest' TITLE V TRSTS ,nC"APTER # Geneal Po$isions Ati!le #77:' A 8eson 9o establis9es a t)st is !alled t9e t)sto3 one in 9o0 !onden!e is e8osed as egads 8o8et* /o t9e benet o/ anot9e 8eson is >non as t9e t)stee3 and t9e 8eson /o 9ose benet t9e t)st 9as been !eated is e/eed to as t9e bene!ia*' Ati!le #77#' T)sts ae eit9e e=8ess o i08lied' E=8ess t)sts ae !eated b* t9e intention o/ t9e t)sto o o/ t9e 8aties' I08lied t)sts !o0e into being b* o8eation o/ la' Ati!le #772' T9e 8in!i8les o/ t9e geneal la o/ t)sts+ inso/a as t9e* ae not in !oni!t it9 t9is Code+ t9e Code o/ Co00e!e+ t9e R)les o/ Co)t and s8e!ial las ae 9eeb* ado8ted'
CIVIL LAW REVIEW 2
laid don in ati!le #772 s9all be a88li!able' C"APTER 2 E=8ess T)sts Ati!le #774' No e=8ess t)sts !on!ening an i00o$able o an* inteest t9eein 0a* be 8o$ed b* 8aol e$iden!e' Ati!le #777' No 8ati!)la ods ae e?)ied /o t9e !eation o/ an e=8ess t)st+ it being s)!ient t9at a t)st is !leal* intended' Ati!le #77%' No t)st s9all /ail be!a)se t9e t)stee a88ointed de!lines t9e designation+ )nless t9e !onta* s9o)ld a88ea in t9e inst)0ent !onstit)ting t9e t)st' Ati!le #77&' A!!e8tan!e b* t9e bene!ia* is ne!essa*' Ne$et9eless+ i/ t9e t)st i08oses no oneo)s !ondition )8on t9e bene!ia*+ 9is a!!e8tan!e s9all be 8es)0ed+ i/ t9ee is no 8oo/ to t9e !onta*'
C"APTER 4 I08lied T)sts Ati!le #77.' T9e en)0eation o/ t9e /olloing !ases o/ i08lied t)st does not e=!l)de ot9es establis9ed b* t9e geneal la o/ t)st+ b)t t9e li0itation
Ati!le #77;' T9ee is an i08lied t)st 9en 8o8et* is sold+ and t9e legal estate is ganted to one 8at* b)t t9e 8i!e is 8aid b* anot9e /o t9e 8)8ose o/ 9a$ing t9e bene!ial inteest o/ t9e 8o8et*' T9e /o0e is t9e t)stee+ 9ile t9e latte is t9e bene!ia*' "oe$e+ i/ t9e 8eson to 9o0 t9e title is !on$e*ed is a !9ild+ legiti0ate o illegiti0ate+ o/ t9e one 8a*ing t9e 8i!e o/ t9e sale+ no t)st i s i08lied b* la+ it being dis8)tabl* 8es)0ed t9at t9ee is a gi/t in /a$o o/ t9e !9ild' Ati!le #77<' T9ee is also an i08lied t)st 9en a donation is 0ade to a 8eson b)t it a88eas t9at alt9o)g9 t9e legal estate is tans0itted to t9e donee+ 9e ne$et9eless is eit9e to 9a$e no bene!ial inteest o onl* a 8at t9eeo/' Ati!le #7%:' I/ t9e 8i!e o/ a sale o/ 8o8et* is loaned o 8aid b* one 8eson /o t9e benet o/ anot9e and t9e !on$e*an!e is 0ade to t9e lende o 8a*o to se!)e t9e 8a*0ent o/ t9e debt+ a t)st aises b* o8eation o/ la in /a$o o/ t9e 8eson to 9o0 t9e 0one* is loaned o /o 9o0 its is 8aid' T9e latte 0a* edee0 t9e 8o8et* and !o08el a !on$e*an!e t9eeo/ to 9i0' Ati!le #7%#' W9en land 8asses b* s)!!ession to an* 8eson and 9e
OBLIGATION AND C O N T R A C T S P a g e | 27 !a)ses t9e legal title to be 8)t in t9e na0e o/ anot9e+ a t)st is establis9ed b* i08li!ation o/ la / o t9e benet o/ t9e t)e one' Ati!le #7%2' I/ to o 0oe 8esons agee to 8)!9ase 8o8et* and b* !o00on !onsent t9e legal title is ta>en in t9e na0e o/ one o/ t9e0 /o t9e benet o/ all+ a t)st is !eated b* /o!e o/ la in /a$o o/ t9e ot9es in 8o8otion to t9e inteest o/ ea!9' Ati!le #7%4' W9en 8o8et* is !on$e*ed to a 8eson in elian!e )8on 9is de!laed intention to 9old it /o+ o tans/e it to anot9e o t9e ganto+ t9ee is an i08lied t)st in /a$o o/ t9e 8eson 9ose benet is !onte08lated' Ati!le #7%7' I/ an absol)te !on$e*an!e o/ 8o8et* is 0ade in ode to se!)e t9e 8e/o0an!e o/ an obligation o/ t9e ganto toad t9e gantee+ a t)st b* $it)e o/ la is establis9ed' I/ t9e /)lll0ent o/ t9e obligation is oeed b* t9e ganto 9en it be!o0es d)e+ 9e 0a* de0and t9e e!on$e*an!e o/ t9e 8o8et* to 9i0' Ati!le #7%%' W9en an* t)stee+ g)adian o ot9e 8eson 9olding a d)!ia* elations9i8 )ses t)st /)nds /o t9e 8)!9ase o/ 8o8et* and !a)ses t9e !on$e*an!e to be 0ade to 9i0 o to a t9id 8eson+ a t)st i s establis9ed b* o8eation o/ la in /a$o o/ t9e 8eson to 9o0 t9e /)nds belong'
CIVIL LAW REVIEW 2
Ati!le #7%&' I/ 8o8et* is a!?)ied t9o)g9 0ista>e o /a)d+ t9e 8eson obtaining it is+ b* /o!e o/ la+ !onsideed a t)stee o/ an i08lied
t)st /o t9e benet o/ t9e 8eson /o0 9o0 t9e 8o8et* !o0es' Ati!le #7%.' An i08lied t)st 0a* be 8o$ed b* oal e$iden!e'
OBLIGATION AND C O N T R A C T S P a g e | 28
