Civil Code

General Legal Terms

• Law (Art. 1) – A rule established by the State to regulate conduct.
• Obligation (Art. 1156) – A juridical necessity to give, do, or not do something.
• Contract (Art. 1305) – A meeting of minds between parties to give or do something.

Legal Capacity and Persons

• Juridical Capacity (Art. 37) – The ability to be the subject of legal relations.
• Capacity to Act (Art. 37) – The ability to perform acts with legal effects.
• Natural Person (Art. 42) – A human being, whose legal personality ends at death.
• Juridical Person (Art. 44) – An entity (e.g., corporations, the State) that can act legally.

Property and Ownership

• Property (Art. 414) – Anything that can be owned.
• Movable Property (Art. 414) – Objects that can be moved (e.g., cars, furniture).
• Immovable Property (Art. 414) – Objects fixed to the ground (e.g., land, buildings).
• Ownership (Art. 427) – The right to control and enjoy a thing.
• Accession (Art. 441) – The right to own things produced by or attached to property.

Contracts and Their Elements

• Essential Elements of a Contract (Art. 1318):
• Consent – Agreement between parties.
• Object – The thing or service being exchanged.
• Cause – The reason or benefit for the contract.
• Quasi-Contract (Art. 2142) – A legal obligation created without an agreement, to prevent unjust enrichment.
• Aleatory Contract (Art. 2010) – A contract dependent on an uncertain event (e.g., insurance).
• Unenforceable Contract (Art. 1403) – A contract that cannot be enforced in court unless ratified.
• Void Contract (Art. 1409) – A contract that is invalid from the start.

Obligations and Their Nature

• Sources of Obligations (Art. 1157):
• Law – Created by statutes.
• Contracts – Created by agreements.
• Quasi-Contracts – Created without an agreement but required by fairness.
• Delicts – Arise from crimes or wrongful acts.
• Quasi-Delicts – Arise from negligence causing damage.
• Solidary Obligation (Art. 2194) – When multiple people are equally liable.

Extinguishment of Obligations (Art. 1231) – Ways obligations end (e.g., payment, loss of object, novation)

Liability and Damages

• Quasi-Delict (Art. 2176) – Negligence causing harm, requiring compensation.
• Actual Damages (Art. 2199) – Compensation for real financial loss.
• Moral Damages (Art. 2217) – Compensation for emotional distress.
• Nominal Damages (Art. 2221) – Compensation to recognize a right violation without financial loss.
• Exemplary Damages (Art. 2231) – Punitive damages to set an example.

Law (Art. 1)

A rule established by the State to regulate conduct.

Obligation (Art. 1156)

A juridical necessity to give, do, or not do something.

Contract (Art. 1305)

A meeting of minds between parties to give or do something.

Juridical Capacity (Art. 37)

The ability to be the subject of legal relations.

Capacity to Act (Art. 37)

The ability to perform acts with legal effects.

Natural Person (Art. 42)

A human being, whose legal personality ends at death.

Juridical Person (Art. 44)

An entity (e.g., corporations, the State) that can act legally.

Property (Art. 414)

Anything that can be owned.

Movable Property (Art. 414)

Objects that can be moved (e.g., cars, furniture).

Immovable Property (Art. 414)

Objects fixed to the ground (e.g., land, buildings).

Ownership (Art. 427)

The right to control and enjoy a thing.

Accession (Art. 441)

The right to own things produced by or attached to property.

Essential Elements of a Contract

• Consent – Agreement between parties.
• Object – The thing or service being exchanged.
• Cause – The reason or benefit for the contract.

Consent

Agreement between parties.

Object

The thing or service being exchanged.

Cause

The reason or benefit for the contract.

Quasi-Contract (Art. 2142)

A legal obligation created without an agreement, to prevent unjust enrichment.

Aleatory Contract (Art. 2010)

A contract dependent on an uncertain event (e.g., insurance).

Unenforceable Contract (Art. 1403)

A contract that cannot be enforced in court unless ratified.

Void Contract (Art. 1409)

A contract that is invalid from the start.

Sources of Obligations (Art. 1157)

• Law – Created by statutes.
• Contracts – Created by agreements.
• Quasi-Contracts – Created without an agreement but required by fairness.
• Delicts – Arise from crimes or wrongful acts.
• Quasi-Delicts – Arise from negligence causing damage.

Law

Created by statutes.

Contracts

Created by agreements.

Quasi-Contracts

Created without an agreement but required by fairness.

Delicts

Arise from crimes or wrongful acts.

Quasi-Delicts

Arise from negligence causing damage.

Solidary Obligation (Art. 2194)

When multiple people are equally liable.

Extinguishment of Obligations (Art. 1231)

Ways obligations end (e.g., payment, loss of object, novation).

REPUBLIC ACT NO. 386

AN ACT TO ORDAIN AND INSTITUTE THE CIVIL CODE OF THE PHILIPPINES

15 days

Art. 2. Laws shall take effect after fifteen days following the completion of their publication in the Official Gazette, unless it is otherwise provided. This Code shall take effect one year after such publication.

Payment

means not only the delivery of money but also the performance, in any other manner, of an obligation.

Moral damages

include physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded feelings, moral shock, social humiliation, and similar injury.

contract

a meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service.

compromise

a contract whereby the parties, by making reciprocal concessions, avoid a litigation or put an end to one already commenced.

10 years

Nevertheless, an agreement to keep the thing undivided for a certain period of time, not exceeding ten years, shall be valid. This term may be extended by a new agreement.

Liquidated damages

are those agreed upon by the parties to a contract, to be paid in case of breach thereof.

Exemplary damages

cannot be recovered as a matter of right; the court will decide whether or not they should be adjudicated.

VOID AND INEXISTENT CONTRACTS

Those whose cause, object or purpose is contrary to law, morals, good customs, public order or public policy

pecuniary loss

No proof of pecuniary loss is necessary in order that moral, nominal, temperate, liquidated or exemplary damages, may be adjudicated. The assessment of such damages, except liquidated ones, is left to the discretion of the court, according to the circumstances of each case.

Temperate or moderate damages

which are more than nominal but less than compensatory damages, may be recovered when the court finds that some pecuniary loss has been suffered but its amount can not, from the nature of the case, be provided with certainty.

CHAPTER 3, OTHER KINDS OF DAMAGES

The assessment of such damages, except liquidated ones, is left to the discretion of the court, according to the circumstances of each case.

Ownership

may be exercised over things or rights

co-ownership

There is co-ownership whenever the ownership of an undivided thing or right belongs to different persons.

Possession

is the holding of a thing or the enjoyment of a right.

Ownership

acquired by occupation and by intellectual creation.

obligation

juridical necessity to give, to do or not to do

Reformation

may be ordered at the instance of either party or his successors in interest, if the mistake was mutual; otherwise, upon petition of the injured party, or his heirs and assigns

rescission

creates the obligation to return the things which were the object of the contract, together with their fruits, and the price with its interest; consequently, it can be carried out only when he who demands rescission can return whatever he may be obliged to restore.