A 1 it must contain all the essential requisites of a

A:
1. It must contain all the essential
requisites of a contract
2. It must not be contrary to law, morals,
good customs, public order, and public
policy
Q: What is compliance in good faith ?
A: It is performance in accordance with the
stipulation, clauses, terms and conditions of the
contract.
Note: The contract is the law between the parties.

UST G
OLDEN
N
OTES
2011
Q: May a party unilaterally evade his obligation
in the contract?
A:
GR: Neither party may unilaterally evade his
obligation in the contract.
XPNs:
Unilateral evasion is allowed when the:
1. contract authorizes such evasion
2. other party assents thereto
Q: Is there a limitation on the right of the parties
to freely enter into stipulations?
A: Yes. Parties may freely enter into any
stipulations provided such are not contrary to
law, morals, good customs, public order or public
policy
Q: What governs obligations arising from
contracts?
A:
GR: These obligations shall be governed
primarily by the stipulations, clauses, terms
and conditions of the parties agreements.
XPN: Contracts with prestations that are
unconscionable or unreasonable.
Note: In case of unconscionable penalty for
breach of contract (Art. 1229, NCC) , or liquidated
damages (Art. 2226, NCC) , the same may be
reduced by the court. (Pineda, Obligations and
Contracts, p.13, 2000 ed)
C
IVIL
L
AW
T
EAM
:
A
DVISER
: A
TTY
. E
LMER
T. R
ABUYA
; S
UBJECT
H
EAD
: A
LFREDO
B. D
IMAFELIX
II;
A
SST
. S
UBJECT
H
EADS
: K
AREN
F
ELIZ
G. S
UPNAD
, L
AMBERTO
L. S
ANTOS
III; M
EMBERS
: P
AUL
E
LBERT
E. A
MON
, A
LSTON
A
NARNA
, O
ZAN
J.
F
ULLEROS
, C
ECILIO
M. J
IMENO
, J
R
., I
SMAEL
S
ARANGAYA
, J
R
.; C
ONTRIBUTORS
: L
OISE
R
AE
G. N
AVAL
, M
ONICA
J
UCOM
C. OBLIGATION EX QUASI CONTRACTU
Q: What is quasi contract?
A: It is a juridical relation arising from lawful,
voluntary and unilateral acts based on the
principle that no one should unjustly enrich
himself at the expense of another.
Q: What is presumptive consent?
A: Since a quasi contract is a unilateral contract
created by the sole act or acts of the gestor, there
is no express consent given by the other party.
The consent needed in a contract is provided by
law through presumption. (Pineda, Obligations
and Contracts, p. 15, 2000 ed)
Q: What are the principal forms of quasi
contracts?
A:
1. Negotiorium gestio (inofficious
manager) arises when a person
voluntarily takes charge of the
management of the business or
property of another without any power
from the latter.
2. Solutio indebiti (unjust enrichment)
takes place when a person receives
something from another without any
right to demand for it, and the thing
was unduly delivered to him through
mistake.
Note: The delivery must not be through liberality or
some other cause.
NEGOTIORUM GESTIO
Q: Upon the declaration of martial rule in the
Philippines, X, together with his wife and
children, disappeared from his residence along
Ermita, Manila. Years passed without Y hearing
from X and his family. Y continued taking care of
X s house, even causing minor repairs to be done
at his house to preserve it. In 1976, when
business began to perk up in the area, Z,
approached Y and proposed that they build