2024 Business and Accountancy Catalog

INTRODUCTION TO Chapters 6, 7, 8, and 9 Kinds of Defective Contracts............................................................. CHAPTER 6 — RESCISSIBLE CONTRACTS Article 1380 — Meaning of Rescissible Contracts; Binding Force of Rescissible Contracts; Meaning of Rescission; Requisites of Rescission ..................................................................................................... Article 1381 — Cases of Rescissible Contracts................................. Article 1382 — Payments Made in a State of Insolvency ................ Article 1383 — Nature of Action for Rescission .............................. Article 1384 — Extent of Rescission .................................................. Article 1385 — Rescission Creates Obligation of Mutual Res- titution; Obligation of Third Person to Restore; When Rescission Not Allowed ........................................................................................................ Article 1386 — Contracts Approved by the Courts ........................ Article 1387 — When Alienation Presumed in Fraud of Creditors; Circumstances Denominated as Badges of Fraud.................................. Article 1388 — Liability of Purchaser in Bad Faith ......................... Article 1389 — Period for Filing Action for Rescission; Persons Entitled to Bring Action.............................................................................. Study Guide .......................................................................................... CHAPTER 7 — VOIDABLE CONTRACTS Article 1390 — Meaning of Voidable Contracts; Binding Force of Voidable Contracts; Kinds of Voidable Contracts; Meaning of Annulment ................................................................................................... Article 1391 — Period for Filing Action for Annulment................... Article 1392 — Meaning and Effect of Ratification ......................... Article 1393 — Kinds of Ratification; Requisites of Ratification ... Article 1394 — Who May Ratify ........................................................ Article 1395 — Conformity of Guilty Party to Ratification Not Required ....................................................................................................... Article 1396 — Effect of Ratification Retroactive ............................ Article 1397 — Partly Entitled to Bring an Action to Annul; Right of Strangers to Bring Action; Guilty Party Without Right to Bring Action ............................................................................................................ Article 1398 — Duty of Mutual Restitution Upon Annulment..... Article 1399 — Restitution by an Incapacitated Person ................. Article 1400 — Effect of Loss of Thing to be Returned................... Article 1401 — Extinguishment of Action for Annulment ......... Article 1402 — Effect Where a Party Cannot Restore What He is Bound to Return ...................................................................................... Study Guide ..........................................................................................

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THE LAW ON OBLIGATIONS AND CONTRACTS

xix INTRODUCTION TO Chapters 6, 7, 8, and 9 Kinds of Defective Contracts............................................................. CHAPTER 6 — RESCISSIBLE CONTRACTS Article 1380 — Meaning of Rescissible Contracts; Binding Force of Rescissible Contracts; Meaning of Rescission; Requisites of Rescission ..................................................................................................... Article 1381 — Cases of Rescissible Contracts................................. Article 1382 — Payments Made in a State of Insolvency ................ Article 1383 — Nature of Action for Rescission .............................. Article 1384 — Extent of Rescission .................................................. Article 1385 — Rescission Creates Obligation of Mutual Res- titution; Obligation of Third Person to Restore; When Rescission Not Allowed ........................................................................................................ Article 1386 — Contracts Approved by the Courts ........................ Article 1387 — When Alienation Presumed in Fraud of Creditors; Circumstances Denominated as Badges of Fraud.................................. Article 1388 — Liability of Purchaser in Bad Faith ......................... Article 1389 — Period for Filing Action for Rescission; Persons Entitled to Bring Action.............................................................................. Study Guide .......................................................................................... CHAPTER 7 — VOIDABLE CONTRACTS Article 1370 — Meaning of Interpretation of Contracts; Literal Meaning Controls When Language Clear; Evident Intention of Parties Prevails Over Terms of Contract .................................................................. Article 1371 — Contemporaneous and Subsequent Acts Relevant in the Determination of Intention ................................................................ Article 1372 — Special Intent Prevails Over a General Intent......... Article 1373 — Interpretation of Stipulation with Several Mean- ings ................................................................................................................... Article 1374 — Interpretation of Various Stipulations of a Contract ........................................................................................................... Article 1375 — Interpretation of Words with Different Significations ................................................................................................... Article 1376 — Resort to Usage or Custom as Aid in Inter- pretation ....................................................................................................... Article 1377 — Interpretation of Obscure Words ............................ Article 1378 — Rules in Case Doubts Absolutely Impossible to Settle .............................................................................................................. Article 1379 — Principles of Interpretation in the Rules of Court Applicable .................................................................................................... Study Guide .......................................................................................... Article 1358 — Contracts Which Must Appear in a Public Document ..................................................................................................... Study Guide .......................................................................................... CHAPTER 4 — REFORMATION OF INSTRUMENTS (n) Article 1359 — Meaning of Reformation; Reason for Reformation; Requisites of Reformation; Reformation Distinguished from Annulment ................................................................................................... Article 1360 — Principles of the General Law on Reformation .... Article 1361 — Mutual Mistake as Basis for Reformation ............. Article 1362 — Mistake on One Side, Fraud or Inequitable Conduct on the Other ................................................................................. Article 1363 — Concealment of Mistake by the Other Party ........ Article 1364 — Ignorance, etc. on the Part of Third Person ...... Article 1365 — Mortgage or Pledge Stated as a Sale ...................... Articles 1366-1367 — Cases When Reformation Not Allowed . Article 1368 — Party Entitled to Reformation ................................. Article 1369 — Procedure for Reformation ...................................... Study Guide .......................................................................................... CHAPTER 5 — INTERPRETATION OF CONTRACTS Article 1390 — Meaning of Voidable Contracts; Binding Force of Voidable Contracts; Kinds of Voidable Contracts; Meaning of Annulment ................................................................................................... Article 1391 — Period for Filing Action for Annulment................... Article 1392 — Meaning and Effect of Ratification ......................... Article 1393 — Kinds of Ratification; Requisites of Ratification ... Article 1394 — Who May Ratify ........................................................ Article 1395 — Conformity of Guilty Party to Ratification Not

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xx CHAPTER 8 — UNENFORCEABLE CONTRACTS (n)

Article 1403 — Meaning of Unenforceable Contracts; Binding Force of Unenforceable Contracts; Kinds of Unenforceable Contracts; Meaning of Unauthorized Contracts; Statute of Frauds; Agreements Within the Scope of the Statute of Frauds................................................... Articles 1404-1405 — Modes of Ratification Under the Statute ...... Article 1406 — Right of a Party Where Contract Enforceable......... Article 1407 — When Unenforceable Contract Becomes a Voidable Contract; When Unenforceable Contract Becomes a Valid Contract..... Article 1408 — Right of Third Persons to Assail an Unenforceable Contract ........................................................................................................... Study Guide .......................................................................................... CHAPTER 9 — VOID OR INEXISTENT CONTRACTS Article 1409 — Meaning of Void Contracts; Meaning of Inexistent Contracts; Characteristics of a Void or Inexistent Contract; Instances of Void or Inexistent Contracts.................................................................. Article 1410 — Action or Defense is Imprescriptible...................... Article 1411 — Rules Where Contract is Illegal and the Act Constitutes a Criminal Offense ................................................................ Article 1412 — Rules Where Contract is Illegal But the Act Does Not Constitute a Criminal Offense ........................................................... Article 1413 — Recovery of Usurious Interest................................. Article 1414 — Recovery Where Contract Entered into for Illegal Purpose ........................................................................................................ Article 1415 — Recovery by an Incapacitated Person .................... Article 1416 — Recovery Where Contract Not Illegal per se; Prohibited Sale of Land .............................................................................. Article 1417 — Recovery of Amount Paid in Excess of Ceiling Price ............................................................................................................... Article 1418 — Recovery of Additional Compensation for Service Rendered Beyond Time Limit ................................................................... Article 1419 — Recovery of Amount of Wage Less Than Minimum Fixed........................................................................................... Article 1420 — Effect of Illegality Where Contract Indivisible/ Divisible; Divisible Contract Distinguished from Divisible Obli- gation ............................................................................................................ Article 1421 — Persons Entitled to Raise Defense of Illegality or Nullity ........................................................................................................... Article 1422 — Void Contract Cannot be Novated ......................... Study Guide ..........................................................................................

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