What to Memorize for Midterms

I. Sale (b) A special promise to answer for

the debt, default, or miscarriage of
Art. 1458, NCC another;
By the contract of sale one of the (c) An agreement made in
contracting parties obligates himself to consideration of marriage, other than
transfer the ownership and to deliver a a mutual promise to marry;
determinate thing, and the other to pay (d) An agreement for the sale of
therefor a price certain in money or its goods, chattels or things in action, at
equivalent. a price not less than five hundred
pesos, unless the buyer accept and
Elements: CSC receive part of such goods and
Requisites for Valid Subject chattels, or the evidences, or some of
Matter: SLS them, of such things in action or pay
at the time some part of the purchase
Art. 1874, NCC money; but when a sale is made by
When a sale of a piece of land or any auction and entry is made by the
interest therein is through an agent, the auctioneer in his sales book, at the
authority of the latter shall be in writing; time of the sale, of the amount and
otherwise, the sale shall be void. (n) kind of property sold, terms of sale,
price, names of the purchasers and
Art. 1403, NCC person on whose account the sale is
The following contracts are made, it is a sufficient memorandum;
unenforceable, unless they are ratified: (e) An agreement of the leasing for a
(1) Those entered into in the name of longer period than one year, or for the
another person by one who has been sale of real property or of an interest
given no authority or legal therein;
representation, or who has acted (f) A representation as to the credit of
beyond his powers; a third person.

(2) Those that do not comply with the (3) Those where both parties are
Statute of Frauds as set forth in this incapable of giving consent to a contract.
number. In the following cases an
agreement hereafter made shall be Obligations of Seller: DTWPP
unenforceable by action, unless the Obligations of Buyer: AP
same, or some note or memorandum,
thereof, be in writing, and subscribed II. Agency
by the party charged, or by his agent; Art. 1868, NCC
evidence, therefore, of the agreement By the contract of agency a person binds
cannot be received without the himself to render some service or to do
writing, or a secondary evidence of its something in representation or on behalf
contents: of another, with the consent or authority
of the latter.
(a) An agreement that by its terms
is not to be performed within a Art. 1319, NCC
year from the making thereof; Consent is manifested by the meeting of
the offer and the acceptance upon the
 What to Memorize for Midterms
thing and the cause which are to those of the principal, he should
constitute the contract. The offer must be prefer his own. (n)
certain and the acceptance absolute. A 7. Art. 1891, NCC. Every agent is bound
qualified acceptance constitutes a to render an account of his
counter-offer. transactions and to deliver to the
principal whatever he may have
Art. 1870, NCC received by virtue of the agency, even
Acceptance by the agent may also be though it may not be owing to the
express, or implied from his acts which principal.
carry out the agency, or from his silence
or inaction according to the Obligations of the Principal
circumstances. 1. Art. 1910, NCC. The principal must
comply with all the obligations which
Obligations of an Agent the agent may have contracted within
1. Art. 1881, NCC. The agent must act the scope of his authority.
within the scope of his authority. He
may do such acts as may be As for any obligation wherein the
conducive to the accomplishment of agent has exceeded his power, the
the purpose of the agency. principal is not bound except when he
2. Art. 1884, NCC. The agent is bound ratifies it expressly or tacitly.
by his acceptance to carry out the
agency, and is liable for the damages 2. Art. 1912, NCC. The principal must
which, through his non-performance, advance to the agent, should the latter
the principal may suffer. so request, the sums necessary for the
3. Art. 1886, NCC. Should there be a execution of the agency.
stipulation that the agent shall
advance the necessary funds, he shall Should the agent have advanced
be bound to do so except when the them, the principal must reimburse
principal is insolvent. (n) him therefor, even if the business or
4. Art. 1887, NCC. In the execution of undertaking was not successful,
the agency, the agent shall act in provided the agent is free from all
accordance with the instructions of fault.
the principal.
The reimbursement shall include
In default thereof, he shall do all that interest on the sums advanced, from
a good father of a family would do, as the day on which the advance was
required by the nature of the business. made.
(1719)
3. Art. 1913, NCC. The principal must
5. Art. 1888, NCC. An agent shall not also indemnify the agent for all the
carry out an agency if its execution damages which the execution of the
would manifestly result in loss or agency may have caused the latter,
damage to the principal. (n) without fault or negligence on his
6. Art. 1889, NCC. The agent shall be part.
liable for damages if, there being a
conflict between his interests and
 What to Memorize for Midterms
Art. 1918, NCC. The principal is not
liable for the expenses incurred by the A stipulation for the common enjoyment
agent in the following cases: of any other profits may also be made; but
the property which the partners may
(1) If the agent acted in contravention acquire subsequently by inheritance,
of the principal's instructions, unless legacy, or donation cannot be included in
the latter should wish to avail himself such stipulation, except the fruits thereof.
of the benefits derived from the (1674a)
contract;
Kinds of Partners: CIGLSSL
(2) When the expenses were due to
the fault of the agent; IV. Loans
Kinds:
(3) When the agent incurred them 1. Commodatum
with knowledge that an unfavorable 2. Mutuum
result would ensue, if the principal
was not aware thereof; Commodatum vs.
Muutum
(4) When it was stipulated that the Essentially May be
expenses would be borne by the gratuitous gratuitous
agent, or that the latter would be Ownership is Ownership
allowed only a certain sum. (n) retained by the goes to the
bailor or lender borrower
III. Partnership It is a loan for It is a loan for
Art. 1767, NCC use or consumption
By the contract of partnership two or temporary
more persons bind themselves to possession
contribute money, property, or industry to It involves real It refers to
a common fund, with the intention of or personal personal
dividing the profits among themselves. property property
Two or more persons may also form a The same thing Same amount
partnership for the exercise of a that was that was
profession. (1665a) borrowed shall borrowed shall
be returned be returned
Kinds of Partnership
Liability: GL V. Pledge and Mortgages
Object: UP Art. 2085, NCC. The following requisites
are essential to the contracts of pledge
Art. 1779, NCC and mortgage:
In a universal partnership of all present (1) That they be constituted to secure the
property, the property which belongs to fulfillment of a principal obligation;
each of the partners at the time of the
constitution of the partnership, becomes (2) That the pledgor or mortgagor be the
the common property of all the partners, absolute owner of the thing pledged or
as well as all the profits which they may mortgaged;
acquire therewith.
 What to Memorize for Midterms
(3) That the persons constituting the
pledge or mortgage have the free disposal
of their property, and in the absence
thereof, that they be legally authorized for
the purpose.

Real Mortgage Pledge

Constituted on Constituted on
real property (Art. personal property
2124) (Art. 2094)
As a rule, The thing pledged
mortgagor retains must be placed in
the property the possession of
the creditor, or of
a third person by
common
agreement
Not valid against Not valid against
third persons if third persons
not registered. unless a
(Art. 2125) description of the
thing pledged
appear in a public
instrument. (Art.
2096, NCC)

Real Mortgage Chattel

Mortgage
Constituted in Constituted in
immovables. movables.
May guarantee Cannot guarantee
future obligations future obligations