The law is the public conscience.

Compensation By: Gretzen M. Colona Article 1278. Compensation shall take place when two persons, in their own right, are creditors and debtors of each other. Compensation is the extinguishment to the concurrent amount of the debts of two persons who, in their own right, are debtors and creditors of each other. Ang compensasyon ay magaganap kung parehong may utang at nagpautang ang bawat isa sa isa't isa. Example: D owes C 5000 Php. C owes D 5000 Php. The parties do not need to pay each other as their obligations are extinguished by compensation. Kinds of Compensation 1. By its effect or extent. a. Total- when both obligations are of the same amount.  b. Partial- when the two obligations are of different amounts. 2. By its cause or origin: a. Legal- when it takes place by operation of law even without the knowledge of the parties. b. Voluntary- when it takes place by agreement of the parties. c. Judicial- when it takes place by order from a ...

ARTICLE 1241 by: Gretzen M. Colona Art. 1241. Payment to a person who is incapacitated to administer his property shall be valid if he has kept the thing delivered, or insofar as the payment has been beneficial to him. Payment made to a third person shall also be valid insofar as it has redounded to the benefit of the creditor. Such benefit to the creditor need not be proved in the following cases: (1) If after the payment, the third person acquires the creditor's rights; (2) If the creditor ratifies the payment to the third person; (3) If by the creditor's conduct, the debtor has been led to believe that the third person had authority to receive the payment. (1163a) Illustration: If A owes B, then the obligation matures, suddenly B got involved in a car accident that caused him to suffer coma. Either A can choose to pay B by paying his medical expenses or consign his payment to the court. A's payment will be valid as long as th...

Article 1220 The remission of the whole obligation, obtained by one of the solidary debtors, does not entitle him to reimbursement from his co-debtors. Ang pagpapatawad sa buong pagkakautang ay nakuha sa pamamagitan ng isa sa magkakasamang mangungutang wala siyang karapatan na manghingi ng bayad mula sa kapwa niyang mangungutang. Illustration: A, B and C are solidary debtors to D. They owed D Php 20,000 that B offered to pay. D, being a kind and impulsive person, remitted the amount to B. The obligation is extinguished and B is not entitled to reimbursement from A and C as B did not spend anything for the remission granted by D as it is a gratuitous one. Article 1221 If the thing has been lost or if the prestation has become impossible without the fault of the solidary debtors, the obligation shall be extinguished. If there was fault on the part of any one of them, all shall be responsible to the creditor, for the price and the payment of damages and interest, without prejudice to the...

Article 1201 Obligation & Contracts by: Gretzen M. Colona “ The choice shall produce no effect except from the time it has been communicated. “ Ang piniling prestation ay hindi magkakabisa maliban sa oras na ito ay ipinaalam. Choice of prestation may be communicated in writing, verbally, impliedly or by any other unequivocal means. Effects of choice or selection: 1. The obligation will be limited only to the chosen or selected prestation. 2. The choice is irrevocable, otherwise, the other party might be exposed to damages which may arise from costly preparation in waiting for the performance of the announced prestation. The performance is not binding if the debtor simply performed his choice of prestation without announcing it to the creditor. The debtor can recover what he had delivered, performed, or paid, under the law on quasi-contracts. The law grants the debtor to make the choice unless the creditor is expressly granted the said right. Whe...

Article 1164 The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises. However, he shall acquire no real right over it until the same has been delivered to him. Real rights (jus in re) -  A power over a specific thing (like the right of ownership or possession) and is binding on the whole world. Non nudis pactis , sed traditionis dominia rerym transferatur .  As a consequence of certain contracts, it is not agreement but tradition or delivery that transfers ownership. Personal rights (jus in personam or jus ad rem ) - Power demandable by one person of another – to give, to do or not to do. Need for Tradition or Delivery – The transfer of the ownership in the contract of such transfer, does not produce the effect by the fact of the mere consent, but is acquired by tradition and in the due observance of general precepts. A creditor or a vendee cannot acquire a real right when the oblig...

Article 1183 . Impossible conditions, those contrary to good customs or public policy and those prohibited by law shall annul the obligation which depends upon them. If the obligation is divisible, that part thereof which is not affected by the impossible or unlawful condition shall be valid . The condition not to do an impossible thing shall be considered as not having been agreed upon. Impossible Condition the condition imposed is not capable of being performed physically. Example: Grace will give Christine a gold necklace if she swims across the Pacific Ocean. Illegal or Illicit Condition when the condition imposed is contrary to law, good custom or public policy. Example: Contrary to law – Pedro agrees to give Ernesto P100,000 if Ernesto will kill Mario. Contrary to good custom – Santos binds himself to give Maria a gold wrist watch if she will cohabit with Mr. Reyes without benefit of marriage. Contrary to public policy – Maria agrees to employ...

Art. 1140. Actions to recover movables shall prescribe eight years from the time the possession thereof is lost, unless the possessor has acquired the ownership by prescription for a less period, according to Articles 1132, and without prejudice to the provisions of Articles 559, 1505, and 1133. (1962a)  Art. 1141. Real actions over immovables prescribe after thirty years. This provision is without prejudice to what is established for the acquisition of ownership and other real rights by prescription. (1963)  TITLE  ANTONIO JAMES , et al. Petitioners vs  EUREM REALTY DEVELOPMENT CORPORATION , Respondent.  FACTS  On September 17, 2003, the heirs of Gorgonio James filed a case for Declaration of Nullity of Title and Ownership of Real Property with Damages against Eurem Realty Development Corporation. The petitioners claims they are the registered owners of a property in Dipolog City containing an area of 448 square meters covered by Tr...