book iv law

8/11/2019 Book IV law

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CHAPTER #NAT=RE AN> E??ECT O? O9LIGATIONS

Art. 116/. E$"r# 3"rson oblig" to gi$" so*"t4ing is also oblig" to ta:" !ar" o) it,it4 t4" 3ro3"r ilig"n!" o) a goo )at4"r o) a )a*il#% unl"ss t4" la, or t4"

sti3ulation o) t4" 3arti"s r";uir"s anot4"r stanar o) !ar". &172a'

Art. 1162. T4" !r"itor 4as a rig4t to t4" )ruits o) t4" t4ing )ro* t4" ti*" t4"obligation to "li$"r it aris"s. Ho,"$"r% 4" s4all a!;uir" no r"al rig4t o$"r it until t4"sa*" 4as b""n "li$"r" to 4i*. &175'

Art. 1165. @4"n ,4at is to b" "li$"r" is a "t"r*inat" t4ing% t4" !r"itor% inaition to t4" rig4t grant" 4i* b# Arti!l" 11(% *a# !o*3"l t4" "btor to *a:" t4""li$"r#.

I) t4" t4ing is in"t"r*inat" or g"n"ri!% 4" *a# as: t4at t4" obligation b" !o*3li"

,it4 at t4" "83"ns" o) t4" "btor.

I) t4" obligor "la#s% or 4as 3ro*is" to "li$"r t4" sa*" t4ing to t,o or *or"3"rsons ,4o o not 4a$" t4" sa*" int"r"st% 4" s4all b" r"s3onsibl" )or an# )ortuitous"$"nt until 4" 4as "))"!t" t4" "li$"r#. &176'

Art. 1166. T4" obligation to gi$" a "t"r*inat" t4ing in!lu"s t4at o) "li$"ring all itsa!!"ssions an a!!"ssori"s% "$"n t4oug4 t4"# *a# not 4a$" b""n *"ntion". &17(a'

Art. 116(. I) a 3"rson oblig" to o so*"t4ing )ails to o it% t4" sa*" s4all b""8"!ut" at 4is !ost.

T4is sa*" rul" s4all b" obs"r$" i) 4" o"s it in !ontra$"ntion o) t4" t"nor o) t4"obligation. ?urt4"r*or"% it *a# b" "!r"" t4at ,4at 4as b""n 3oorl# on" b"unon". &17'

Art. 116. @4"n t4" obligation !onsists in not oing% an t4" obligor o"s ,4at 4asb""n )orbi"n 4i*% it s4all also b" unon" at 4is "83"ns". &177a'

Art. 1167. T4os" oblig" to "li$"r or to o so*"t4ing in!ur in "la# )ro* t4" ti*"t4" oblig"" jui!iall# or "8trajui!iall# "*ans )ro* t4"* t4" )ul)ill*"nt o) t4"irobligation.

Ho,"$"r% t4" "*an b# t4" !r"itor s4all not b" n"!"ssar# in or"r t4at "la# *a#"8ist+

&1' @4"n t4" obligation or t4" la, "83r"ssl# so "!lar"- or

&' @4"n )ro* t4" natur" an t4" !ir!u*stan!"s o) t4" obligation it a33"ars t4at t4""signation o) t4" ti*" ,4"n t4" t4ing is to b" "li$"r" or t4" s"r$i!" is to b"
http://obligationscontracts.blogspot.com/2008/03/chapter-2_7076.htmlhttp://obligationscontracts.blogspot.com/2008/03/chapter-2_7076.html


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r"n"r" ,as a !ontrolling *oti$" )or t4" "stablis4*"nt o) t4" !ontra!t- or

&/' @4"n "*an ,oul b" us"l"ss% as ,4"n t4" obligor 4as r"n"r" it b"#on 4is3o,"r to 3"r)or*.

In r"!i3ro!al obligations% n"it4"r 3art# in!urs in "la# i) t4" ot4"r o"s not !o*3l# oris not r"a# to !o*3l# in a 3ro3"r *ann"r ,it4 ,4at is in!u*b"nt u3on 4i*. ?ro* t4"*o*"nt on" o) t4" 3arti"s )ul)ills 4is obligation% "la# b# t4" ot4"r b"gins. &11a'

Art. 11(. T4os" ,4o in t4" 3"r)or*an!" o) t4"ir obligations ar" guilt# o) )rau%n"glig"n!"% or "la#% an t4os" ,4o in an# *ann"r !ontra$"n" t4" t"nor t4"r"o)% ar"liabl" )or a*ag"s. &111'

Art. 11(1. R"s3onsibilit# arising )ro* )rau is "*anabl" in all obligations. An#,ai$"r o) an a!tion )or )utur" )rau is $oi. &11a'

Art. 11(. R"s3onsibilit# arising )ro* n"glig"n!" in t4" 3"r)or*an!" o) "$"r# :in o)obligation is also "*anabl"% but su!4 liabilit# *a# b" r"gulat" b# t4" !ourts%a!!oring to t4" !ir!u*stan!"s. &11/'

Art. 11(/. T4" )ault or n"glig"n!" o) t4" obligor !onsists in t4" o*ission o) t4atilig"n!" ,4i!4 is r";uir" b# t4" natur" o) t4" obligation an !orr"s3ons ,it4 t4"!ir!u*stan!"s o) t4" 3"rsons% o) t4" ti*" an o) t4" 3la!". @4"n n"glig"n!" s4o,sba )ait4% t4" 3ro$isions o) Arti!l"s 11(1 an 1% 3aragra34 % s4all a33l#.

I) t4" la, or !ontra!t o"s not stat" t4" ilig"n!" ,4i!4 is to b" obs"r$" in t4"3"r)or*an!"% t4at ,4i!4 is "83"!t" o) a goo )at4"r o) a )a*il# s4all b" r";uir".

&112a'

Art. 11(2. E8!"3t in !as"s "83r"ssl# s3"!i)i" b# t4" la,% or ,4"n it is ot4"r,is""!lar" b# sti3ulation% or ,4"n t4" natur" o) t4" obligation r";uir"s t4" assu*3tiono) ris:% no 3"rson s4all b" r"s3onsibl" )or t4os" "$"nts ,4i!4 !oul not b" )or"s""n%or ,4i!4% t4oug4 )or"s""n% ,"r" in"$itabl". &115a'

Art. 11(5. =surious transa!tions s4all b" go$"rn" b# s3"!ial la,s. &n'

Art. 11(6. T4" r"!"i3t o) t4" 3rin!i3al b# t4" !r"itor ,it4out r"s"r$ation ,it4r"s3"!t to t4" int"r"st% s4all gi$" ris" to t4" 3r"su*3tion t4at sai int"r"st 4as b""n

3ai.

T4" r"!"i3t o) a lat"r install*"nt o) a "bt ,it4out r"s"r$ation as to 3riorinstall*"nts% s4all li:",is" rais" t4" 3r"su*3tion t4at su!4 install*"nts 4a$" b""n3ai. &111a'

Art. 11((. T4" !r"itors% a)t"r 4a$ing 3ursu" t4" 3ro3"rt# in 3oss"ssion o) t4" "btorto satis)# t4"ir !lai*s% *a# "8"r!is" all t4" rig4ts an bring all t4" a!tions o) t4"


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latt"r )or t4" sa*" 3ur3os"% sa$" t4os" ,4i!4 ar" in4"r"nt in 4is 3"rson- t4"# *a#also i*3ugn t4" a!ts ,4i!4 t4" "btor *a# 4a$" on" to ")rau t4"*. &1111'

Art. 11(. Subj"!t to t4" la,s% all rig4ts a!;uir" in $irtu" o) an obligation ar"trans*issibl"% i) t4"r" 4as b""n no sti3ulation to t4" !ontrar#. &111'

CHAPTER 3>I??ERENT IN>S O? O9LIGATIONS

SECTION 1. Pur" an Conitional Obligations

Art. 11(7. E$"r# obligation ,4os" 3"r)or*an!" o"s not "3"n u3on a )utur" orun!"rtain "$"nt% or u3on a 3ast "$"nt un:no,n to t4" 3arti"s% is "*anabl" at on!".

E$"r# obligation ,4i!4 !ontains a r"solutor# !onition s4all also b" "*anabl"%,it4out 3r"jui!" to t4" "))"!ts o) t4" 4a33"ning o) t4" "$"nt. &111/'

Art. 11. @4"n t4" "btor bins 4i*s"l) to 3a# ,4"n 4is *"ans 3"r*it 4i* to o so%t4" obligation s4all b" ""*" to b" on" ,it4 a 3"rio% subj"!t to t4" 3ro$isions o)Arti!l" 117(. &n'

Art. 111. In !onitional obligations% t4" a!;uisition o) rig4ts% as ,"ll as t4""8tinguis4*"nt or loss o) t4os" alr"a# a!;uir"% s4all "3"n u3on t4" 4a33"ning o)t4" "$"nt ,4i!4 !onstitut"s t4" !onition. &1112'

Art. 11. @4"n t4" )ul)ill*"nt o) t4" !onition "3"ns u3on t4" sol" ,ill o) t4""btor% t4" !onitional obligation s4all b" $oi. I) it "3"ns u3on !4an!" or u3on t4"

,ill o) a t4ir 3"rson% t4" obligation s4all ta:" "))"!t in !on)or*it# ,it4 t4"3ro$isions o) t4is Co". &1115'

Art. 11/. I*3ossibl" !onitions% t4os" !ontrar# to goo !usto*s or 3ubli! 3oli!# ant4os" 3ro4ibit" b# la, s4all annul t4" obligation ,4i!4 "3"ns u3on t4"*. I) t4"obligation is i$isibl"% t4at 3art t4"r"o) ,4i!4 is not a))"!t" b# t4" i*3ossibl" orunla,)ul !onition s4all b" $ali.

T4" !onition not to o an i*3ossibl" t4ing s4all b" !onsi"r" as not 4a$ing b""nagr"" u3on. &1116a'

Art. 112. T4" !onition t4at so*" "$"nt 4a33"n at a "t"r*inat" ti*" s4all"8tinguis4 t4" obligation as soon as t4" ti*" "83ir"s or i) it 4as b"!o*" inubitabl"t4at t4" "$"nt ,ill not ta:" 3la!". &111('

Art. 115. T4" !onition t4at so*" "$"nt ,ill not 4a33"n at a "t"r*inat" ti*" s4allr"n"r t4" obligation "))"!ti$" )ro* t4" *o*"nt t4" ti*" ini!at" 4as "la3s"% or i)it 4as b"!o*" "$i"nt t4at t4" "$"nt !annot o!!ur.


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I) no ti*" 4as b""n )i8"% t4" !onition s4all b" ""*" )ul)ill" at su!4 ti*" as *a#4a$" 3robabl# b""n !ont"*3lat"% b"aring in *in t4" natur" o) t4" obligation.&111'

Art. 116. T4" !onition s4all b" ""*" )ul)ill" ,4"n t4" obligor $oluntaril#

3r"$"nts its )ul)ill*"nt. &1117'

Art. 11(. T4" "))"!ts o) a !onitional obligation to gi$"% on!" t4" !onition 4as b""n)ul)ill"% s4all r"troa!t to t4" a# o) t4" !onstitution o) t4" obligation. N"$"rt4"l"ss%,4"n t4" obligation i*3os"s r"!i3ro!al 3r"stations u3on t4" 3arti"s% t4" )ruits anint"r"sts uring t4" 3"n"n!# o) t4" !onition s4all b" ""*" to 4a$" b""n *utuall#!o*3"nsat". I) t4" obligation is unilat"ral% t4" "btor s4all a33ro3riat" t4" )ruitsan int"r"sts r"!"i$"% unl"ss )ro* t4" natur" an !ir!u*stan!"s o) t4" obligation its4oul b" in)"rr" t4at t4" int"ntion o) t4" 3"rson !onstituting t4" sa*" ,asi))"r"nt.

In obligations to o an not to o% t4" !ourts s4all "t"r*in"% in "a!4 !as"% t4"r"troa!ti$" "))"!t o) t4" !onition t4at 4as b""n !o*3li" ,it4. &11'

Art. 11. T4" !r"itor *a#% b")or" t4" )ul)ill*"nt o) t4" !onition% bring t4"a33ro3riat" a!tions )or t4" 3r"s"r$ation o) 4is rig4t.

T4" "btor *a# r"!o$"r ,4at uring t4" sa*" ti*" 4" 4as 3ai b# *ista:" in !as" o)a sus3"nsi$" !onition. &111a'

Art. 117. @4"n t4" !onitions 4a$" b""n i*3os" ,it4 t4" int"ntion o) sus3"ningt4" "))i!a!# o) an obligation to gi$"% t4" )ollo,ing rul"s s4all b" obs"r$" in !as" o)

t4" i*3ro$"*"nt% loss or "t"rioration o) t4" t4ing uring t4" 3"n"n!# o) t4"!onition+

&1' I) t4" t4ing is lost ,it4out t4" )ault o) t4" "btor% t4" obligation s4all b""8tinguis4"-

&' I) t4" t4ing is lost t4roug4 t4" )ault o) t4" "btor% 4" s4all b" oblig" to 3a#a*ag"s- it is un"rstoo t4at t4" t4ing is lost ,4"n it 3"ris4"s% or go"s out o)!o**"r!"% or isa33"ars in su!4 a ,a# t4at its "8ist"n!" is un:no,n or it !annot b"r"!o$"r"-

&/' @4"n t4" t4ing "t"riorat"s ,it4out t4" )ault o) t4" "btor% t4" i*3air*"nt is tob" born" b# t4" !r"itor-

&2' I) it "t"riorat"s t4roug4 t4" )ault o) t4" "btor% t4" !r"itor *a# !4oos" b"t,""nt4" r"s!ission o) t4" obligation an its )ul)ill*"nt% ,it4 in"*nit# )or a*ag"s in"it4"r !as"-

&5' I) t4" t4ing is i*3ro$" b# its natur"% or b# ti*"% t4" i*3ro$"*"nt s4all inur" to


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t4" b"n")it o) t4" !r"itor-

&6' I) it is i*3ro$" at t4" "83"ns" o) t4" "btor% 4" s4all 4a$" no ot4"r rig4t t4ant4at grant" to t4" usu)ru!tuar#. &11'

Art. 117. @4"n t4" !onitions 4a$" )or t4"ir 3ur3os" t4" "8tinguis4*"nt o) anobligation to gi$"% t4" 3arti"s% u3on t4" )ul)ill*"nt o) sai !onitions% s4all r"turn to"a!4 ot4"r ,4at t4"# 4a$" r"!"i$".

In !as" o) t4" loss% "t"rioration or i*3ro$"*"nt o) t4" t4ing% t4" 3ro$isions ,4i!4%,it4 r"s3"!t to t4" "btor% ar" lai o,n in t4" 3r"!"ing arti!l" s4all b" a33li" tot4" 3art# ,4o is boun to r"turn.

As )or t4" obligations to o an not to o% t4" 3ro$isions o) t4" s"!on 3aragra34 o)Arti!l" 11( s4all b" obs"r$" as r"gars t4" "))"!t o) t4" "8tinguis4*"nt o) t4"obligation. &11/'

Art. 1171. T4" 3o,"r to r"s!in obligations is i*3li" in r"!i3ro!al on"s% in !as" on"o) t4" obligors s4oul not !o*3l# ,it4 ,4at is in!u*b"nt u3on 4i*.

T4" injur" 3art# *a# !4oos" b"t,""n t4" )ul)ill*"nt an t4" r"s!ission o) t4"obligation% ,it4 t4" 3a#*"nt o) a*ag"s in "it4"r !as". H" *a# also s"": r"s!ission%"$"n a)t"r 4" 4as !4os"n )ul)ill*"nt% i) t4" latt"r s4oul b"!o*" i*3ossibl".

T4" !ourt s4all "!r"" t4" r"s!ission !lai*"% unl"ss t4"r" b" just !aus" aut4oriBingt4" )i8ing o) a 3"rio.

T4is is un"rstoo to b" ,it4out 3r"jui!" to t4" rig4ts o) t4ir 3"rsons ,4o 4a$"a!;uir" t4" t4ing% in a!!oran!" ,it4 Arti!l"s 1/5 an 1/ an t4" ortgag" La,.&112'

Art. 117. In !as" bot4 3arti"s 4a$" !o**itt" a br"a!4 o) t4" obligation% t4"liabilit# o) t4" )irst in)ra!tor s4all b" ";uitabl# t"*3"r" b# t4" !ourts. I) it !annotb" "t"r*in" ,4i!4 o) t4" 3arti"s )irst $iolat" t4" !ontra!t% t4" sa*" s4all b"""*" "8tinguis4"% an "a!4 s4all b"ar 4is o,n a*ag"s. &n'

SECTION . Obligations ,it4 a P"rio

Art. 117/. Obligations )or ,4os" )ul)ill*"nt a a# !"rtain 4as b""n )i8"% s4all b""*anabl" onl# ,4"n t4at a# !o*"s.

Obligations ,it4 a r"solutor# 3"rio ta:" "))"!t at on!"% but t"r*inat" u3on arri$al o)t4" a# !"rtain.

A a# !"rtain is un"rstoo to b" t4at ,4i!4 *ust n"!"ssaril# !o*"% alt4oug4 it *a#not b" :no,n ,4"n.


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s4all )all u3on t4" 3ri!" o) an# on" o) t4"*% also ,it4 in"*nit# )or a*ag"s.

T4" sa*" rul"s s4all b" a33li" to obligations to o or not to o in !as" on"% so*" orall o) t4" 3r"stations s4oul b"!o*" i*3ossibl". &11/6a'

Art. 16. @4"n onl# on" 3r"station 4as b""n agr"" u3on% but t4" obligor *a#r"n"r anot4"r in substitution% t4" obligation is !all" )a!ultati$".

T4" loss or "t"rioration o) t4" t4ing int"n" as a substitut"% t4roug4 t4" n"glig"n!"o) t4" obligor% o"s not r"n"r 4i* liabl". 9ut on!" t4" substitution 4as b""n *a"%t4" obligor is liabl" )or t4" loss o) t4" substitut" on a!!ount o) 4is "la#% n"glig"n!"or )rau. &n'

SECTION 2. oint an Soliar# Obligations

Art. 1(. T4" !on!urr"n!" o) t,o or *or" !r"itors or o) t,o or *or" "btors in on"

an t4" sa*" obligation o"s not i*3l# t4at "a!4 on" o) t4" )or*"r 4as a rig4t to"*an% or t4at "a!4 on" o) t4" latt"r is boun to r"n"r% "ntir" !o*3lian!" ,it4 t4"3r"station. T4"r" is a soliar# liabilit# onl# ,4"n t4" obligation "83r"ssl# so stat"s% or,4"n t4" la, or t4" natur" o) t4" obligation r";uir"s soliarit#. &11/(a'

Art. 1. I) )ro* t4" la,% or t4" natur" or t4" ,oring o) t4" obligations to ,4i!4t4" 3r"!"ing arti!l" r")"rs t4" !ontrar# o"s not a33"ar% t4" !r"it or "bt s4all b"3r"su*" to b" i$i" into as *an# s4ar"s as t4"r" ar" !r"itors or "btors% t4"!r"its or "bts b"ing !onsi"r" istin!t )ro* on" anot4"r% subj"!t to t4" Rul"s o)Court go$"rning t4" *ulti3li!it# o) suits. &11/a'

Art. 17. I) t4" i$ision is i*3ossibl"% t4" rig4t o) t4" !r"itors *a# b" 3r"jui!"onl# b# t4"ir !oll"!ti$" a!ts% an t4" "bt !an b" "n)or!" onl# b# 3ro!""ing againstall t4" "btors. I) on" o) t4" latt"r s4oul b" insol$"nt% t4" ot4"rs s4all not b" liabl")or 4is s4ar". &11/7'

Art. 11. T4" ini$isibilit# o) an obligation o"s not n"!"ssaril# gi$" ris" to soliarit#.Nor o"s soliarit# o) its"l) i*3l# ini$isibilit#. &n'

Art. 111. Soliarit# *a# "8ist alt4oug4 t4" !r"itors an t4" "btors *a# not b"boun in t4" sa*" *ann"r an b# t4" sa*" 3"rios an !onitions. &112'

Art. 11. Ea!4 on" o) t4" soliar# !r"itors *a# o ,4at"$"r *a# b" us")ul to t4"ot4"rs% but not an#t4ing ,4i!4 *a# b" 3r"jui!ial to t4" latt"r. &1121a'

Art. 11/. A soliar# !r"itor !annot assign 4is rig4ts ,it4out t4" !ons"nt o) t4"ot4"rs. &n'

Art. 112. T4" "btor *a# 3a# an# on" o) t4" soliar# !r"itors- but i) an# "*an%jui!ial or "8trajui!ial% 4as b""n *a" b# on" o) t4"*% 3a#*"nt s4oul b" *a" to


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4i*. &112a'

Art. 115. No$ation% !o*3"nsation% !on)usion or r"*ission o) t4" "bt% *a" b# an#o) t4" soliar# !r"itors or ,it4 an# o) t4" soliar# "btors% s4all "8tinguis4 t4"obligation% ,it4out 3r"jui!" to t4" 3ro$isions o) Arti!l" 117.

T4" !r"itor ,4o *a# 4a$" "8"!ut" an# o) t4"s" a!ts% as ,"ll as 4" ,4o !oll"!ts t4""bt% s4all b" liabl" to t4" ot4"rs )or t4" s4ar" in t4" obligation !orr"s3oning tot4"*. &112/'

Art. 116. T4" !r"itor *a# 3ro!"" against an# on" o) t4" soliar# "btors or so*"or all o) t4"* si*ultan"ousl#. T4" "*an *a" against on" o) t4"* s4all not b" anobsta!l" to t4os" ,4i!4 *a# subs";u"ntl# b" ir"!t" against t4" ot4"rs% so long ast4" "bt 4as not b""n )ull# !oll"!t". &1122a'

Art. 11(. Pa#*"nt *a" b# on" o) t4" soliar# "btors "8tinguis4"s t4" obligation. I)

t,o or *or" soliar# "btors o))"r to 3a#% t4" !r"itor *a# !4oos" ,4i!4 o))"r toa!!"3t.

H" ,4o *a" t4" 3a#*"nt *a# !lai* )ro* 4is !o"btors onl# t4" s4ar" ,4i!4!orr"s3ons to "a!4% ,it4 t4" int"r"st )or t4" 3a#*"nt alr"a# *a". I) t4" 3a#*"ntis *a" b")or" t4" "bt is u"% no int"r"st )or t4" int"r$"ning 3"rio *a# b""*an".

@4"n on" o) t4" soliar# "btors !annot% b"!aus" o) 4is insol$"n!#% r"i*burs" 4iss4ar" to t4" "btor 3a#ing t4" obligation% su!4 s4ar" s4all b" born" b# all 4is !o"btors% in 3ro3ortion to t4" "bt o) "a!4. &1125a'

Art. 11. Pa#*"nt b# a soliar# "btor s4all not "ntitl" 4i* to r"i*burs"*"nt )ro*4is !o"btors i) su!4 3a#*"nt is *a" a)t"r t4" obligation 4as 3r"s!rib" or b"!o*"ill"gal. &n'

Art. 117. T4" r"*ission *a" b# t4" !r"itor o) t4" s4ar" ,4i!4 a))"!ts on" o) t4"soliar# "btors o"s not r"l"as" t4" latt"r )ro* 4is r"s3onsibilit# to,ars t4" !o"btors% in !as" t4" "bt 4a b""n totall# 3ai b# an#on" o) t4"* b")or" t4"r"*ission ,as "))"!t". &1126a'

Art. 1. T4" r"*ission o) t4" ,4ol" obligation% obtain" b# on" o) t4" soliar#

"btors% o"s not "ntitl" 4i* to r"i*burs"*"nt )ro* 4is !o"btors. &n'

Art. 11. I) t4" t4ing 4as b""n lost or i) t4" 3r"station 4as b"!o*" i*3ossibl",it4out t4" )ault o) t4" soliar# "btors% t4" obligation s4all b" "8tinguis4".

I) t4"r" ,as )ault on t4" 3art o) an# on" o) t4"*% all s4all b" r"s3onsibl" to t4"!r"itor% )or t4" 3ri!" an t4" 3a#*"nt o) a*ag"s an int"r"st% ,it4out 3r"jui!" tot4"ir a!tion against t4" guilt# or n"glig"nt "btor.


11/46

I) t4roug4 a )ortuitous "$"nt% t4" t4ing is lost or t4" 3"r)or*an!" 4as b"!o*"i*3ossibl" a)t"r on" o) t4" soliar# "btors 4as in!urr" in "la# t4roug4 t4" jui!ialor "8trajui!ial "*an u3on 4i* b# t4" !r"itor% t4" 3ro$isions o) t4" 3r"!"ing3aragra34 s4all a33l#. &112(a'

Art. 1. A soliar# "btor *a#% in a!tions )il" b# t4" !r"itor% a$ail 4i*s"l) o) all")"ns"s ,4i!4 ar" "ri$" )ro* t4" natur" o) t4" obligation an o) t4os" ,4i!4 ar"3"rsonal to 4i*% or 3"rtain to 4is o,n s4ar". @it4 r"s3"!t to t4os" ,4i!4 3"rsonall#b"long to t4" ot4"rs% 4" *a# a$ail 4i*s"l) t4"r"o) onl# as r"gars t4at 3art o) t4""bt )or ,4i!4 t4" latt"r ar" r"s3onsibl". &112a'

SECTION 5. >i$isibl" an Ini$isibl" Obligations

Art. 1/. T4" i$isibilit# or ini$isibilit# o) t4" t4ings t4at ar" t4" obj"!t o)obligations in ,4i!4 t4"r" is onl# on" "btor an onl# on" !r"itor o"s not alt"r or

*oi)# t4" 3ro$isions o) C4a3t"r o) t4is Titl". &1127'

Art. 12. A joint ini$isibl" obligation gi$"s ris" to in"*nit# )or a*ag"s )ro* t4"ti*" an#on" o) t4" "btors o"s not !o*3l# ,it4 4is un"rta:ing. T4" "btors ,4o*a# 4a$" b""n r"a# to )ul)ill t4"ir 3ro*is"s s4all not !ontribut" to t4" in"*nit#b"#on t4" !orr"s3oning 3ortion o) t4" 3ri!" o) t4" t4ing or o) t4" $alu" o) t4"s"r$i!" in ,4i!4 t4" obligation !onsists. &115'

Art. 15. ?or t4" 3ur3os"s o) t4" 3r"!"ing arti!l"s% obligations to gi$" ")init"t4ings an t4os" ,4i!4 ar" not sus!"3tibl" o) 3artial 3"r)or*an!" s4all b" ""*" tob" ini$isibl".

@4"n t4" obligation 4as )or its obj"!t t4" "8"!ution o) a !"rtain nu*b"r o) a#s o),or:% t4" a!!o*3lis4*"nt o) ,or: b# *"tri!al units% or analogous t4ings ,4i!4 b#t4"ir natur" ar" sus!"3tibl" o) 3artial 3"r)or*an!"% it s4all b" i$isibl".

Ho,"$"r% "$"n t4oug4 t4" obj"!t or s"r$i!" *a# b" 34#si!all# i$isibl"% an obligationis ini$isibl" i) so 3ro$i" b# la, or int"n" b# t4" 3arti"s.

In obligations not to o% i$isibilit# or ini$isibilit# s4all b" "t"r*in" b# t4"!4ara!t"r o) t4" 3r"station in "a!4 3arti!ular !as". &1151a'

SECTION 6. Obligations ,it4 a P"nal Claus"

Art. 16. In obligations ,it4 a 3"nal !laus"% t4" 3"nalt# s4all substitut" t4"in"*nit# )or a*ag"s an t4" 3a#*"nt o) int"r"sts in !as" o) non!o*3lian!"% i)t4"r" is no sti3ulation to t4" !ontrar#. N"$"rt4"l"ss% a*ag"s s4all b" 3ai i) t4"obligor r")us"s to 3a# t4" 3"nalt# or is guilt# o) )rau in t4" )ul)ill*"nt o) t4"obligation.


12/46

T4" 3"nalt# *a# b" "n)or!" onl# ,4"n it is "*anabl" in a!!oran!" ,it4 t4"3ro$isions o) t4is Co". &115a'

Art. 1(. T4" "btor !annot "8"*3t 4i*s"l) )ro* t4" 3"r)or*an!" o) t4" obligationb# 3a#ing t4" 3"nalt#% sa$" in t4" !as" ,4"r" t4is rig4t 4as b""n "83r"ssl# r"s"r$"

)or 4i*. N"it4"r !an t4" !r"itor "*an t4" )ul)ill*"nt o) t4" obligation an t4"satis)a!tion o) t4" 3"nalt# at t4" sa*" ti*"% unl"ss t4is rig4t 4as b""n !l"arl# grant"4i*. Ho,"$"r% i) a)t"r t4" !r"itor 4as "!i" to r";uir" t4" )ul)ill*"nt o) t4"obligation% t4" 3"r)or*an!" t4"r"o) s4oul b"!o*" i*3ossibl" ,it4out 4is )ault% t4"3"nalt# *a# b" "n)or!". &115/a'

Art. 1. Proo) o) a!tual a*ag"s su))"r" b# t4" !r"itor is not n"!"ssar# in or"rt4at t4" 3"nalt# *a# b" "*an". &n'

Art. 17. T4" jug" s4all ";uitabl# r"u!" t4" 3"nalt# ,4"n t4" 3rin!i3al obligation4as b""n 3artl# or irr"gularl# !o*3li" ,it4 b# t4" "btor. E$"n i) t4"r" 4as b""n no

3"r)or*an!"% t4" 3"nalt# *a# also b" r"u!" b# t4" !ourts i) it is ini;uitous orun!ons!ionabl". &1152a'

Art. 1/. T4" nullit# o) t4" 3"nal !laus" o"s not !arr# ,it4 it t4at o) t4" 3rin!i3alobligation.

T4" nullit# o) t4" 3rin!i3al obligation !arri"s ,it4 it t4at o) t4" 3"nal !laus". &1155'"#,ors+Alt"rnati$" Obligations% >i$isibl" an Ini$isibl" Obligations% oint an Soliar# Obligations% ins o) Obligations%Obligations,it4 P"rio%Pur" an Conitional Obligations%,it4 P"nal Claus"

CHAPTER $E


13/46


14/46

Pa#*"nt *a" to a t4ir 3"rson s4all also b" $ali inso)ar as it 4as r"oun" to t4"b"n")it o) t4" !r"itor. Su!4 b"n")it to t4" !r"itor n"" not b" 3ro$" in t4")ollo,ing !as"s+

&1' I) a)t"r t4" 3a#*"nt% t4" t4ir 3"rson a!;uir"s t4" !r"itorDs rig4ts-

&' I) t4" !r"itor rati)i"s t4" 3a#*"nt to t4" t4ir 3"rson-

&/' I) b# t4" !r"itorDs !onu!t% t4" "btor 4as b""n l" to b"li"$" t4at t4" t4ir3"rson 4a aut4orit# to r"!"i$" t4" 3a#*"nt. &116/a'

Art. 12. Pa#*"nt *a" in goo )ait4 to an# 3"rson in 3oss"ssion o) t4" !r"it s4allr"l"as" t4" "btor. &1162'

Art. 12/. Pa#*"nt *a" to t4" !r"itor b# t4" "btor a)t"r t4" latt"r 4as b""n

jui!iall# or"r" to r"tain t4" "bt s4all not b" $ali. &1165'

Art. 122. T4" "btor o) a t4ing !annot !o*3"l t4" !r"itor to r"!"i$" a i))"r"nton"% alt4oug4 t4" latt"r *a# b" o) t4" sa*" $alu" as% or *or" $aluabl" t4an t4at,4i!4 is u".

In obligations to o or not to o% an a!t or )orb"aran!" !annot b" substitut" b#anot4"r a!t or )orb"aran!" against t4" oblig""Ds ,ill. &1166a'

Art. 125. >ation in 3a#*"nt% ,4"r"b# 3ro3"rt# is ali"nat" to t4" !r"itor insatis)a!tion o) a "bt in *on"#% s4all b" go$"rn" b# t4" la, o) sal"s. &n'

Art. 126. @4"n t4" obligation !onsists in t4" "li$"r# o) an in"t"r*inat" or g"n"ri!t4ing% ,4os" ;ualit# an !ir!u*stan!"s 4a$" not b""n stat"% t4" !r"itor !annot"*an a t4ing o) su3"rior ;ualit#. N"it4"r !an t4" "btor "li$"r a t4ing o) in)"rior;ualit#. T4" 3ur3os" o) t4" obligation an ot4"r !ir!u*stan!"s s4all b" ta:"n into!onsi"ration. &116(a'

Art. 12(. =nl"ss it is ot4"r,is" sti3ulat"% t4" "8trajui!ial "83"ns"s r";uir" b# t4"3a#*"nt s4all b" )or t4" a!!ount o) t4" "btor. @it4 r"gar to jui!ial !osts% t4"Rul"s o) Court s4all go$"rn. &116a'

Art. 12. =nl"ss t4"r" is an "83r"ss sti3ulation to t4at "))"!t% t4" !r"itor !annot b"!o*3"ll" 3artiall# to r"!"i$" t4" 3r"stations in ,4i!4 t4" obligation !onsists.N"it4"r *a# t4" "btor b" r";uir" to *a:" 3artial 3a#*"nts.

Ho,"$"r% ,4"n t4" "bt is in 3art li;uiat" an in 3art unli;uiat"% t4" !r"itor*a# "*an an t4" "btor *a# "))"!t t4" 3a#*"nt o) t4" )or*"r ,it4out ,aiting)or t4" li;uiation o) t4" latt"r. &1167a'


15/46

Art. 127. T4" 3a#*"nt o) "bts in *on"# s4all b" *a" in t4" !urr"n!# sti3ulat"%an i) it is not 3ossibl" to "li$"r su!4 !urr"n!#% t4"n in t4" !urr"n!# ,4i!4 is l"galt"n"r in t4" P4ili33in"s.

T4" "li$"r# o) 3ro*issor# not"s 3a#abl" to or"r% or bills o) "8!4ang" or ot4"r

*"r!antil" o!u*"nts s4all 3rou!" t4" "))"!t o) 3a#*"nt onl# ,4"n t4"# 4a$" b""n!as4"% or ,4"n t4roug4 t4" )ault o) t4" !r"itor t4"# 4a$" b""n i*3air".

In t4" *"anti*"% t4" a!tion "ri$" )ro* t4" original obligation s4all b" 4"l in t4"ab"#an!". &11('

Art. 15. In !as" an "8traorinar# in)lation or ")lation o) t4" !urr"n!# sti3ulat"s4oul su3"r$"n"% t4" $alu" o) t4" !urr"n!# at t4" ti*" o) t4" "stablis4*"nt o) t4"obligation s4all b" t4" basis o) 3a#*"nt% unl"ss t4"r" is an agr""*"nt to t4" !ontrar#.&n'

Art. 151. Pa#*"nt s4all b" *a" in t4" 3la!" "signat" in t4" obligation.

T4"r" b"ing no "83r"ss sti3ulation an i) t4" un"rta:ing is to "li$"r a "t"r*inat"t4ing% t4" 3a#*"nt s4all b" *a" ,4"r"$"r t4" t4ing *ig4t b" at t4" *o*"nt t4"obligation ,as !onstitut".

In an# ot4"r !as" t4" 3la!" o) 3a#*"nt s4all b" t4" o*i!il" o) t4" "btor.

I) t4" "btor !4ang"s 4is o*i!il" in ba )ait4 or a)t"r 4" 4as in!urr" in "la#% t4"aitional "83"ns"s s4all b" born" b# 4i*.

T4"s" 3ro$isions ar" ,it4out 3r"jui!" to $"nu" un"r t4" Rul"s o) Court. &11(1a'

S=9SECTION 1. A33li!ation o) Pa#*"nts

Art. 15. H" ,4o 4as $arious "bts o) t4" sa*" :in in )a$or o) on" an t4" sa*"!r"itor% *a# "!lar" at t4" ti*" o) *a:ing t4" 3a#*"nt% to ,4i!4 o) t4"* t4" sa*"*ust b" a33li". =nl"ss t4" 3arti"s so sti3ulat"% or ,4"n t4" a33li!ation o) 3a#*"ntis *a" b# t4" 3art# )or ,4os" b"n")it t4" t"r* 4as b""n !onstitut"% a33li!ations4all not b" *a" as to "bts ,4i!4 ar" not #"t u".

I) t4" "btor a!!"3ts )ro* t4" !r"itor a r"!"i3t in ,4i!4 an a33li!ation o) t4"

3a#*"nt is *a"% t4" )or*"r !annot !o*3lain o) t4" sa*"% unl"ss t4"r" is a !aus" )orin$aliating t4" !ontra!t. &11(a'

Art. 15/. I) t4" "bt 3rou!"s int"r"st% 3a#*"nt o) t4" 3rin!i3al s4all not b" ""*"to 4a$" b""n *a" until t4" int"r"sts 4a$" b""n !o$"r". &11(/'

Art. 152. @4"n t4" 3a#*"nt !annot b" a33li" in a!!oran!" ,it4 t4" 3r"!"ingrul"s% or i) a33li!ation !an not b" in)"rr" )ro* ot4"r !ir!u*stan!"s% t4" "bt ,4i!4


16/46

is *ost on"rous to t4" "btor% a*ong t4os" u"% s4all b" ""*" to 4a$" b""nsatis)i".

I) t4" "bts u" ar" o) t4" sa*" natur" an bur"n% t4" 3a#*"nt s4all b" a33li" toall o) t4"* 3ro3ortionat"l#. &11(2a'

S=9SECTION . Pa#*"nt b# C"ssion

Art. 155. T4" "btor *a# !"" or assign 4is 3ro3"rt# to 4is !r"itors in 3a#*"nt o)4is "bts. T4is !"ssion% unl"ss t4"r" is sti3ulation to t4" !ontrar#% s4all onl# r"l"as"t4" "btor )ro* r"s3onsibilit# )or t4" n"t 3ro!""s o) t4" t4ing assign". T4"agr""*"nts ,4i!4% on t4" "))"!t o) t4" !"ssion% ar" *a" b"t,""n t4" "btor an 4is!r"itors s4all b" go$"rn" b# s3"!ial la,s. &11(5a'

S=9SECTION /. T"n"r o) Pa#*"nt an Consignation

Art. 156. I) t4" !r"itor to ,4o* t"n"r o) 3a#*"nt 4as b""n *a" r")us"s ,it4outjust !aus" to a!!"3t it% t4" "btor s4all b" r"l"as" )ro* r"s3onsibilit# b# t4"!onsignation o) t4" t4ing or su* u".

Consignation alon" s4all 3rou!" t4" sa*" "))"!t in t4" )ollo,ing !as"s+

&1' @4"n t4" !r"itor is abs"nt or un:no,n% or o"s not a33"ar at t4" 3la!" o)3a#*"nt-

&' @4"n 4" is in!a3a!itat" to r"!"i$" t4" 3a#*"nt at t4" ti*" it is u"-

&/' @4"n% ,it4out just !aus"% 4" r")us"s to gi$" a r"!"i3t-

&2' @4"n t,o or *or" 3"rsons !lai* t4" sa*" rig4t to !oll"!t-

&5' @4"n t4" titl" o) t4" obligation 4as b""n lost. &11(6a'

Art. 15(. In or"r t4at t4" !onsignation o) t4" t4ing u" *a# r"l"as" t4" obligor% it*ust )irst b" announ!" to t4" 3"rsons int"r"st" in t4" )ul)ill*"nt o) t4" obligation.

T4" !onsignation s4all b" in"))"!tual i) it is not *a" stri!tl# in !onsonan!" ,it4 t4"3ro$isions ,4i!4 r"gulat" 3a#*"nt. &11(('

Art. 15. Consignation s4all b" *a" b# "3ositing t4" t4ings u" at t4" is3osal o)jui!ial aut4orit#% b")or" ,4o* t4" t"n"r o) 3a#*"nt s4all b" 3ro$"% in a 3ro3"r!as"% an t4" announ!"*"nt o) t4" !onsignation in ot4"r !as"s.

T4" !onsignation 4a$ing b""n *a"% t4" int"r"st" 3arti"s s4all also b" noti)i"t4"r"o). &11('


17/46

Art. 157. T4" "83"ns"s o) !onsignation% ,4"n 3ro3"rl# *a"% s4all b" !4arg"against t4" !r"itor. &11('

Art. 16. On!" t4" !onsignation 4as b""n ul# *a"% t4" "btor *a# as: t4" jug"to or"r t4" !an!"llation o) t4" obligation.

9")or" t4" !r"itor 4as a!!"3t" t4" !onsignation% or b")or" a jui!ial "!larationt4at t4" !onsignation 4as b""n 3ro3"rl# *a"% t4" "btor *a# ,it4ra, t4" t4ing ort4" su* "3osit"% allo,ing t4" obligation to r"*ain in )or!". &11'

Art. 161. I)% t4" !onsignation 4a$ing b""n *a"% t4" !r"itor s4oul aut4oriB" t4""btor to ,it4ra, t4" sa*"% 4" s4all los" "$"r# 3r")"r"n!" ,4i!4 4" *a# 4a$" o$"rt4" t4ing. T4" !o"btors% guarantors an sur"ti"s s4all b" r"l"as". &111a'

SECTION . Loss o) t4" T4ing >u"

Art. 16. An obligation ,4i!4 !onsists in t4" "li$"r# o) a "t"r*inat" t4ing s4all b""8tinguis4" i) it s4oul b" lost or "stro#" ,it4out t4" )ault o) t4" "btor% anb")or" 4" 4as in!urr" in "la#.

@4"n b# la, or sti3ulation% t4" obligor is liabl" "$"n )or )ortuitous "$"nts% t4" loss o)t4" t4ing o"s not "8tinguis4 t4" obligation% an 4" s4all b" r"s3onsibl" )or a*ag"s.T4" sa*" rul" a33li"s ,4"n t4" natur" o) t4" obligation r";uir"s t4" assu*3tion o)ris:. &11a'

Art. 16/. In an obligation to "li$"r a g"n"ri! t4ing% t4" loss or "stru!tion o)an#t4ing o) t4" sa*" :in o"s not "8tinguis4 t4" obligation. &n'

Art. 162. T4" !ourts s4all "t"r*in" ,4"t4"r% un"r t4" !ir!u*stan!"s% t4" 3artialloss o) t4" obj"!t o) t4" obligation is so i*3ortant as to "8tinguis4 t4" obligation. &n'

Art. 165. @4"n"$"r t4" t4ing is lost in t4" 3oss"ssion o) t4" "btor% it s4all b"3r"su*" t4at t4" loss ,as u" to 4is )ault% unl"ss t4"r" is 3roo) to t4" !ontrar#% an,it4out 3r"jui!" to t4" 3ro$isions o) arti!l" 1165. T4is 3r"su*3tion o"s not a33l# in!as" o) "art4;ua:"% )loo% stor*% or ot4"r natural !ala*it#. &11/a'

Art. 166. T4" "btor in obligations to o s4all also b" r"l"as" ,4"n t4" 3r"stationb"!o*"s l"gall# or 34#si!all# i*3ossibl" ,it4out t4" )ault o) t4" obligor. &112a'

Art. 16(. @4"n t4" s"r$i!" 4as b"!o*" so i))i!ult as to b" *ani)"stl# b"#on t4"!ont"*3lation o) t4" 3arti"s% t4" obligor *a# also b" r"l"as" t4"r")ro*% in ,4ol" orin 3art. &n'

Art. 16. @4"n t4" "bt o) a t4ing !"rtain an "t"r*inat" 3ro!""s )ro* a !ri*inalo))"ns"% t4" "btor s4all not b" "8"*3t" )ro* t4" 3a#*"nt o) its 3ri!"% ,4at"$"r*a# b" t4" !aus" )or t4" loss% unl"ss t4" t4ing 4a$ing b""n o))"r" b# 4i* to t4"


18/46

3"rson ,4o s4oul r"!"i$" it% t4" latt"r r")us" ,it4out justi)i!ation to a!!"3t it.&115'

Art. 167. T4" obligation 4a$ing b""n "8tinguis4" b# t4" loss o) t4" t4ing% t4"!r"itor s4all 4a$" all t4" rig4ts o) a!tion ,4i!4 t4" "btor *a# 4a$" against t4ir

3"rsons b# r"ason o) t4" loss. &116'

SECTION /. Cononation or R"*ission o) t4" >"bt

Art. 1(. Cononation or r"*ission is "ss"ntiall# gratuitous% an r";uir"s t4"a!!"3tan!" b# t4" obligor. It *a# b" *a" "83r"ssl# or i*3li"l#.

On" an t4" ot4"r :in s4all b" subj"!t to t4" rul"s ,4i!4 go$"rn ino))i!iousonations. E83r"ss !ononation s4all% )urt4"r*or"% !o*3l# ,it4 t4" )or*s o)onation. &11('

Art. 1(1. T4" "li$"r# o) a 3ri$at" o!u*"nt "$i"n!ing a !r"it% *a" $oluntaril#b# t4" !r"itor to t4" "btor% i*3li"s t4" r"nun!iation o) t4" a!tion ,4i!4 t4" )or*"r4a against t4" latt"r.

I) in or"r to nulli)# t4is ,ai$"r it s4oul b" !lai*" to b" ino))i!ious% t4" "btor an4is 4"irs *a# u34ol it b# 3ro$ing t4at t4" "li$"r# o) t4" o!u*"nt ,as *a" in$irtu" o) 3a#*"nt o) t4" "bt. &11'

Art. 1(. @4"n"$"r t4" 3ri$at" o!u*"nt in ,4i!4 t4" "bt a33"ars is )oun in t4"3oss"ssion o) t4" "btor% it s4all b" 3r"su*" t4at t4" !r"itor "li$"r" it$oluntaril#% unl"ss t4" !ontrar# is 3ro$". &117'

Art. 1(/. T4" r"nun!iation o) t4" 3rin!i3al "bt s4all "8tinguis4 t4" a!!"ssor#obligations- but t4" ,ai$"r o) t4" latt"r s4all l"a$" t4" )or*"r in )or!". &117'

Art. 1(2. It is 3r"su*" t4at t4" a!!"ssor# obligation o) 3l"g" 4as b""n r"*itt",4"n t4" t4ing 3l"g"% a)t"r its "li$"r# to t4" !r"itor% is )oun in t4" 3oss"ssion o)t4" "btor% or o) a t4ir 3"rson ,4o o,ns t4" t4ing. &1171a'

SECTION 2. Con)usion or "rg"r o) Rig4ts

Art. 1(5. T4" obligation is "8tinguis4" )ro* t4" ti*" t4" !4ara!t"rs o) !r"itor an

"btor ar" *"rg" in t4" sa*" 3"rson. &117a'

Art. 1(6. "rg"r ,4i!4 ta:"s 3la!" in t4" 3"rson o) t4" 3rin!i3al "btor or !r"itorb"n")its t4" guarantors. Con)usion ,4i!4 ta:"s 3la!" in t4" 3"rson o) an# o) t4" latt"ro"s not "8tinguis4 t4" obligation. &117/'

Art. 1((. Con)usion o"s not "8tinguis4 a joint obligation "8!"3t as r"gars t4" s4ar"!orr"s3oning to t4" !r"itor or "btor in ,4o* t4" t,o !4ara!t"rs !on!ur. &1172'


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SECTION 5. Co*3"nsation

Art. 1(. Co*3"nsation s4all ta:" 3la!" ,4"n t,o 3"rsons% in t4"ir o,n rig4t% ar"!r"itors an "btors o) "a!4 ot4"r. &1175'

Art. 1(7. In or"r t4at !o*3"nsation *a# b" 3ro3"r% it is n"!"ssar#+

&1' T4at "a!4 on" o) t4" obligors b" boun 3rin!i3all#% an t4at 4" b" at t4" sa*"ti*" a 3rin!i3al !r"itor o) t4" ot4"r-

&' T4at bot4 "bts !onsist in a su* o) *on"#% or i) t4" t4ings u" ar" !onsu*abl"%t4"# b" o) t4" sa*" :in% an also o) t4" sa*" ;ualit# i) t4" latt"r 4as b""n stat"-

&/' T4at t4" t,o "bts b" u"-

&2' T4at t4"# b" li;uiat" an "*anabl"-

&5' T4at o$"r n"it4"r o) t4"* t4"r" b" an# r"t"ntion or !ontro$"rs#% !o**"n!" b#t4ir 3"rsons an !o**uni!at" in u" ti*" to t4" "btor. &1176'

Art. 1. Not,it4staning t4" 3ro$isions o) t4" 3r"!"ing arti!l"% t4" guarantor *a#s"t u3 !o*3"nsation as r"gars ,4at t4" !r"itor *a# o," t4" 3rin!i3al "btor.&117('

Art. 11. Co*3"nsation *a# b" total or 3artial. @4"n t4" t,o "bts ar" o) t4" sa*"a*ount% t4"r" is a total !o*3"nsation. &n'

Art. 1. T4" 3arti"s *a# agr"" u3on t4" !o*3"nsation o) "bts ,4i!4 ar" not #"tu". &n'

Art. 1/. I) on" o) t4" 3arti"s to a suit o$"r an obligation 4as a !lai* )or a*ag"sagainst t4" ot4"r% t4" )or*"r *a# s"t it o)) b# 3ro$ing 4is rig4t to sai a*ag"s ant4" a*ount t4"r"o). &n'

Art. 12. @4"n on" or bot4 "bts ar" r"s!issibl" or $oiabl"% t4"# *a# b"!o*3"nsat" against "a!4 ot4"r b")or" t4"# ar" jui!iall# r"s!in" or a$oi". &n'

Art. 15. T4" "btor ,4o 4as !ons"nt" to t4" assign*"nt o) rig4ts *a" b# a!r"itor in )a$or o) a t4ir 3"rson% !annot s"t u3 against t4" assign"" t4"!o*3"nsation ,4i!4 ,oul 3"rtain to 4i* against t4" assignor% unl"ss t4" assignor ,asnoti)i" b# t4" "btor at t4" ti*" 4" ga$" 4is !ons"nt% t4at 4" r"s"r$" 4is rig4t tot4" !o*3"nsation.

I) t4" !r"itor !o**uni!at" t4" !"ssion to 4i* but t4" "btor i not !ons"ntt4"r"to% t4" latt"r *a# s"t u3 t4" !o*3"nsation o) "bts 3r"$ious to t4" !"ssion% but


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not o) subs";u"nt on"s.

I) t4" assign*"nt is *a" ,it4out t4" :no,l"g" o) t4" "btor% 4" *a# s"t u3 t4"!o*3"nsation o) all !r"its 3rior to t4" sa*" an also lat"r on"s until 4" 4a:no,l"g" o) t4" assign*"nt. &117a'

Art. 16. Co*3"nsation ta:"s 3la!" b# o3"ration o) la,% "$"n t4oug4 t4" "bts *a#b" 3a#abl" at i))"r"nt 3la!"s% but t4"r" s4all b" an in"*nit# )or "83"ns"s o)"8!4ang" or trans3ortation to t4" 3la!" o) 3a#*"nt. &1177a'

Art. 1(. Co*3"nsation s4all not b" 3ro3"r ,4"n on" o) t4" "bts aris"s )ro* a"3ositu* or )ro* t4" obligations o) a "3ositar# or o) a bail"" in !o**oatu*.

N"it4"r !an !o*3"nsation b" s"t u3 against a !r"itor ,4o 4as a !lai* )or su33ortu" b# gratuitous titl"% ,it4out 3r"jui!" to t4" 3ro$isions o) 3aragra34 o) Arti!l"/1. &1a'

Art. 1. N"it4"r s4all t4"r" b" !o*3"nsation i) on" o) t4" "bts !onsists in !i$illiabilit# arising )ro* a 3"nal o))"ns". &n'

Art. 17. I) a 3"rson s4oul 4a$" against 4i* s"$"ral "bts ,4i!4 ar" sus!"3tibl" o)!o*3"nsation% t4" rul"s on t4" a33li!ation o) 3a#*"nts s4all a33l# to t4" or"r o) t4"!o*3"nsation. &11'

Art. 17. @4"n all t4" r";uisit"s *"ntion" in Arti!l" 1(7 ar" 3r"s"nt%!o*3"nsation ta:"s "))"!t b# o3"ration o) la,% an "8tinguis4"s bot4 "bts to t4"!on!urr"nt a*ount% "$"n t4oug4 t4" !r"itors an "btors ar" not a,ar" o) t4"

!o*3"nsation. &1a'

SECTION 6. No$ation

Art. 171. Obligations *a# b" *oi)i" b#+

&1' C4anging t4"ir obj"!t or 3rin!i3al !onitions-

&' Substituting t4" 3"rson o) t4" "btor-

&/' Subrogating a t4ir 3"rson in t4" rig4ts o) t4" !r"itor. &1/'

Art. 17. In or"r t4at an obligation *a# b" "8tinguis4" b# anot4"r ,4i!4substitut" t4" sa*"% it is i*3"rati$" t4at it b" so "!lar" in un";ui$o!al t"r*s% ort4at t4" ol an t4" n", obligations b" on "$"r# 3oint in!o*3atibl" ,it4 "a!4 ot4"r.&12'

Art. 17/. No$ation ,4i!4 !onsists in substituting a n", "btor in t4" 3la!" o) t4"original on"% *a# b" *a" "$"n ,it4out t4" :no,l"g" or against t4" ,ill o) t4"


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latt"r% but not ,it4out t4" !ons"nt o) t4" !r"itor. Pa#*"nt b# t4" n", "btor gi$"s4i* t4" rig4ts *"ntion" in Arti!l"s 1/6 an 1/(. &15a'

Art. 172. I) t4" substitution is ,it4out t4" :no,l"g" or against t4" ,ill o) t4""btor% t4" n", "btorDs insol$"n!# or non)ul)ill*"nt o) t4" obligations s4all not gi$"

ris" to an# liabilit# on t4" 3art o) t4" original "btor. &n'

Art. 175. T4" insol$"n!# o) t4" n", "btor% ,4o 4as b""n 3ro3os" b# t4" original"btor an a!!"3t" b# t4" !r"itor% s4all not r"$i$" t4" a!tion o) t4" latt"r againstt4" original obligor% "8!"3t ,4"n sai insol$"n!# ,as alr"a# "8isting an o) 3ubli!:no,l"g"% or :no,n to t4" "btor% ,4"n t4" "l"gat" 4is "bt. &16a'

Art. 176. @4"n t4" 3rin!i3al obligation is "8tinguis4" in !ons";u"n!" o) a no$ation%a!!"ssor# obligations *a# subsist onl# inso)ar as t4"# *a# b"n")it t4ir 3"rsons ,4oi not gi$" t4"ir !ons"nt. &1('

Art. 17(. I) t4" n", obligation is $oi% t4" original on" s4all subsist% unl"ss t4"3arti"s int"n" t4at t4" )or*"r r"lation s4oul b" "8tinguis4" in an# "$"nt. &n'

Art. 17. T4" no$ation is $oi i) t4" original obligation ,as $oi% "8!"3t ,4"nannul*"nt *a# b" !lai*" onl# b# t4" "btor or ,4"n rati)i!ation $aliat"s a!ts,4i!4 ar" $oiabl". &1a'

Art. 177. I) t4" original obligation ,as subj"!t to a sus3"nsi$" or r"solutor#!onition% t4" n", obligation s4all b" un"r t4" sa*" !onition% unl"ss it is ot4"r,is"sti3ulat". &n'

Art. 1/. Subrogation o) a t4ir 3"rson in t4" rig4ts o) t4" !r"itor is "it4"r l"gal or!on$"ntional. T4" )or*"r is not 3r"su*"% "8!"3t in !as"s "83r"ssl# *"ntion" in t4isCo"- t4" latt"r *ust b" !l"arl# "stablis4" in or"r t4at it *a# ta:" "))"!t. &17a'

Art. 1/1. Con$"ntional subrogation o) a t4ir 3"rson r";uir"s t4" !ons"nt o) t4"original 3arti"s an o) t4" t4ir 3"rson. &n'

Art. 1/. It is 3r"su*" t4at t4"r" is l"gal subrogation+

&1' @4"n a !r"itor 3a#s anot4"r !r"itor ,4o is 3r")"rr"% "$"n ,it4out t4" "btorDs:no,l"g"-

&' @4"n a t4ir 3"rson% not int"r"st" in t4" obligation% 3a#s ,it4 t4" "83r"ss orta!it a33ro$al o) t4" "btor-

&/' @4"n% "$"n ,it4out t4" :no,l"g" o) t4" "btor% a 3"rson int"r"st" in t4")ul)ill*"nt o) t4" obligation 3a#s% ,it4out 3r"jui!" to t4" "))"!ts o) !on)usion as tot4" latt"rDs s4ar". &11a'Art. 1//. Subrogation trans)"rs to t4" 3"rsons subrogat" t4" !r"it ,it4 all t4"


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rig4ts t4"r"to a33"rtaining% "it4"r against t4" "btor or against t4ir 3"rson% b" t4"#guarantors or 3oss"ssors o) *ortgag"s% subj"!t to sti3ulation in a !on$"ntionalsubrogation. &11a'

Art. 1/2. A !r"itor% to ,4o* 3artial 3a#*"nt 4as b""n *a"% *a# "8"r!is" 4is rig4t

)or t4" r"*ain"r% an 4" s4all b" 3r")"rr" to t4" 3"rson ,4o 4as b""n subrogat"in 4is 3la!" in $irtu" o) t4" 3artial 3a#*"nt o) t4" sa*" !r"it. &11/'

Tit! II. " CONTRACTSCHAPTER 1GENERAL PROVISIONS

Art. 1/5. A !ontra!t is a *""ting o) *ins b"t,""n t,o 3"rsons ,4"r"b# on" bins4i*s"l)% ,it4 r"s3"!t to t4" ot4"r% to gi$" so*"t4ing or to r"n"r so*" s"r$i!".&152a'

Art. 1/6. T4" !ontra!ting 3arti"s *a# "stablis4 su!4 sti3ulations% !laus"s% t"r*s an!onitions as t4"# *a# ""* !on$"ni"nt% 3ro$i" t4"# ar" not !ontrar# to la,%*orals% goo !usto*s% 3ubli! or"r% or 3ubli! 3oli!#. &155a'

Art. 1/(. Inno*inat" !ontra!ts s4all b" r"gulat" b# t4" sti3ulations o) t4" 3arti"s%b# t4" 3ro$isions o) Titl"s I an II o) t4is 9oo:% b# t4" rul"s go$"rning t4" *ostanalogous no*inat" !ontra!ts% an b# t4" !usto*s o) t4" 3la!". &n'

Art. 1/. T4" !ontra!t *ust bin bot4 !ontra!ting 3arti"s- its $aliit# or !o*3lian!"!annot b" l")t to t4" ,ill o) on" o) t4"*. &156a'

Art. 1/7. T4" "t"r*ination o) t4" 3"r)or*an!" *a# b" l")t to a t4ir 3"rson% ,4os""!ision s4all not b" bining until it 4as b""n *a" :no,n to bot4 !ontra!ting3arti"s. &n'

Art. 1/1. T4" "t"r*ination s4all not b" obligator# i) it is "$i"ntl# in";uitabl". Insu!4 !as"% t4" !ourts s4all "!i" ,4at is ";uitabl" un"r t4" !ir!u*stan!"s. &n'

Art. 1/11. Contra!ts ta:" "))"!t onl# b"t,""n t4" 3arti"s% t4"ir assigns an 4"irs%"8!"3t in !as" ,4"r" t4" rig4ts an obligations arising )ro* t4" !ontra!t ar" nottrans*issibl" b# t4"ir natur"% or b# sti3ulation or b# 3ro$ision o) la,. T4" 4"ir is notliabl" b"#on t4" $alu" o) t4" 3ro3"rt# 4" r"!"i$" )ro* t4" "!""nt.

I) a !ontra!t s4oul !ontain so*" sti3ulation in )a$or o) a t4ir 3"rson% 4" *a#"*an its )ul)ill*"nt 3ro$i" 4" !o**uni!at" 4is a!!"3tan!" to t4" obligorb")or" its r"$o!ation. A *"r" in!i"ntal b"n")it or int"r"st o) a 3"rson is notsu))i!i"nt. T4" !ontra!ting 3arti"s *ust 4a$" !l"arl# an "lib"rat"l# !on)"rr" a)a$or u3on a t4ir 3"rson. &15(a'

Art. 1/1. In !ontra!ts !r"ating r"al rig4ts% t4ir 3"rsons ,4o !o*" into 3oss"ssion o)
http://obligationscontracts.blogspot.com/2008/03/title-ii-contracts.htmlhttp://obligationscontracts.blogspot.com/2008/03/title-ii-contracts.html


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t4" obj"!t o) t4" !ontra!t ar" boun t4"r"b#% subj"!t to t4" 3ro$isions o) t4"ortgag" La, an t4" Lan R"gistration La,s. &n'

Art. 1/1/. Cr"itors ar" 3rot"!t" in !as"s o) !ontra!ts int"n" to ")rau t4"*. &n'

Art. 1/12. An# t4ir 3"rson ,4o inu!"s anot4"r to $iolat" 4is !ontra!t s4all b" liabl")or a*ag"s to t4" ot4"r !ontra!ting 3art#. &n'

Art. 1/15. Contra!ts ar" 3"r)"!t" b# *"r" !ons"nt% an )ro* t4at *o*"nt t4"3arti"s ar" boun not onl# to t4" )ul)ill*"nt o) ,4at 4as b""n "83r"ssl# sti3ulat"but also to all t4" !ons";u"n!"s ,4i!4% a!!oring to t4"ir natur"% *a# b" in :""3ing,it4 goo )ait4% usag" an la,. &15'

Art. 1/16. R"al !ontra!ts% su!4 as "3osit% 3l"g" an Co**oatu*% ar" not3"r)"!t" until t4" "li$"r# o) t4" obj"!t o) t4" obligation. &n'

Art. 1/1(. No on" *a# !ontra!t in t4" na*" o) anot4"r ,it4out b"ing aut4oriB" b#t4" latt"r% or unl"ss 4" 4as b# la, a rig4t to r"3r"s"nt 4i*.

A !ontra!t "nt"r" into in t4" na*" o) anot4"r b# on" ,4o 4as no aut4orit# or l"galr"3r"s"ntation% or ,4o 4as a!t" b"#on 4is 3o,"rs% s4all b" un"n)or!"abl"% unl"ss itis rati)i"% "83r"ssl# or i*3li"l#% b# t4" 3"rson on ,4os" b"4al) it 4as b""n"8"!ut"% b")or" it is r"$o:" b# t4" ot4"r !ontra!ting 3art#. &157a'

CHAPTER #ESSENTIAL RE0=ISITES O? CONTRACTSGENERAL PROVISIONS

Art. 1/1. T4"r" is no !ontra!t unl"ss t4" )ollo,ing r";uisit"s !on!ur+

&1' Cons"nt o) t4" !ontra!ting 3arti"s-

&' Obj"!t !"rtain ,4i!4 is t4" subj"!t *att"r o) t4" !ontra!t-

&/' Caus" o) t4" obligation ,4i!4 is "stablis4". &161'

SECTION 1. Cons"nt

Art. 1/17. Cons"nt is *ani)"st" b# t4" *""ting o) t4" o))"r an t4" a!!"3tan!" u3ont4" t4ing an t4" !aus" ,4i!4 ar" to !onstitut" t4" !ontra!t. T4" o))"r *ust b"!"rtain an t4" a!!"3tan!" absolut". A ;uali)i" a!!"3tan!" !onstitut"s a !ount"ro))"r.

A!!"3tan!" *a" b# l"tt"r or t"l"gra* o"s not bin t4" o))"r"r "8!"3t )ro* t4"ti*" it !a*" to 4is :no,l"g". T4" !ontra!t% in su!4 a !as"% is 3r"su*" to 4a$"b""n "nt"r" into in t4" 3la!" ,4"r" t4" o))"r ,as *a". &16a'


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Art. 1/. An a!!"3tan!" *a# b" "83r"ss or i*3li". &n'

Art. 1/1. T4" 3"rson *a:ing t4" o))"r *a# )i8 t4" ti*"% 3la!"% an *ann"r o)a!!"3tan!"% all o) ,4i!4 *ust b" !o*3li" ,it4. &n'

Art. 1/. An o))"r *a" t4roug4 an ag"nt is a!!"3t" )ro* t4" ti*" a!!"3tan!" is!o**uni!at" to 4i*. &n'

Art. 1//. An o))"r b"!o*"s in"))"!ti$" u3on t4" "at4% !i$il int"ri!tion% insanit#% orinsol$"n!# o) "it4"r 3art# b")or" a!!"3tan!" is !on$"#". &n'

Art. 1/2. @4"n t4" o))"r"r 4as allo," t4" o))"r"" a !"rtain 3"rio to a!!"3t% t4"o))"r *a# b" ,it4ra,n at an# ti*" b")or" a!!"3tan!" b# !o**uni!ating su!4,it4ra,al% "8!"3t ,4"n t4" o3tion is )oun" u3on a !onsi"ration% as so*"t4ing3ai or 3ro*is". &n'

Art. 1/5. =nl"ss it a33"ars ot4"r,is"% busin"ss a$"rtis"*"nts o) t4ings )or sal" ar"not ")init" o))"rs% but *"r" in$itations to *a:" an o))"r. &n'

Art. 1/6. A$"rtis"*"nts )or bi"rs ar" si*3l# in$itations to *a:" 3ro3osals% ant4" a$"rtis"r is not boun to a!!"3t t4" 4ig4"st or lo,"st bi"r% unl"ss t4" !ontrar#a33"ars. &n'

Art. 1/(. T4" )ollo,ing !annot gi$" !ons"nt to a !ontra!t+

&1' =n"*an!i3at" *inors-

&' Insan" or "*"nt" 3"rsons% an "a)*ut"s ,4o o not :no, 4o, to ,rit".&16/a'Art. 1/. Contra!ts "nt"r" into uring a lu!i int"r$al ar" $ali. Contra!ts agr"" toin a stat" o) run:"nn"ss or uring a 4#3noti! s3"ll ar" $oiabl". &n'

Art. 1/7. T4" in!a3a!it# "!lar" in Arti!l" 1/( is subj"!t to t4" *oi)i!ations"t"r*in" b# la,% an is un"rstoo to b" ,it4out 3r"jui!" to s3"!ialis;uali)i!ations "stablis4" in t4" la,s. &162'

Art. 1//. A !ontra!t ,4"r" !ons"nt is gi$"n t4roug4 *ista:"% $iol"n!"% inti*iation%

unu" in)lu"n!"% or )rau is $oiabl". &165a'

Art. 1//1. In or"r t4at *ista:" *a# in$aliat" !ons"nt% it s4oul r")"r to t4"substan!" o) t4" t4ing ,4i!4 is t4" obj"!t o) t4" !ontra!t% or to t4os" !onitions,4i!4 4a$" 3rin!i3all# *o$" on" or bot4 3arti"s to "nt"r into t4" !ontra!t.

ista:" as to t4" i"ntit# or ;uali)i!ations o) on" o) t4" 3arti"s ,ill $itiat" !ons"ntonl# ,4"n su!4 i"ntit# or ;uali)i!ations 4a$" b""n t4" 3rin!i3al !aus" o) t4"


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!ontra!t.

A si*3l" *ista:" o) a!!ount s4all gi$" ris" to its !orr"!tion. &166a'

Art. 1//. @4"n on" o) t4" 3arti"s is unabl" to r"a% or i) t4" !ontra!t is in a

languag" not un"rstoo b# 4i*% an *ista:" or )rau is all"g"% t4" 3"rson "n)or!ingt4" !ontra!t *ust s4o, t4at t4" t"r*s t4"r"o) 4a$" b""n )ull# "83lain" to t4")or*"r. &n'

Art. 1///. T4"r" is no *ista:" i) t4" 3art# all"ging it :n", t4" oubt% !onting"n!# orris: a))"!ting t4" obj"!t o) t4" !ontra!t. &n'

Art. 1//2. utual "rror as to t4" l"gal "))"!t o) an agr""*"nt ,4"n t4" r"al 3ur3os"o) t4" 3arti"s is )rustrat"% *a# $itiat" !ons"nt. &n'

Art. 1//5. T4"r" is $iol"n!" ,4"n in or"r to ,r"st !ons"nt% s"rious or irr"sistibl"

)or!" is "*3lo#".

T4"r" is inti*iation ,4"n on" o) t4" !ontra!ting 3arti"s is !o*3"ll" b# ar"asonabl" an ,"llgroun" )"ar o) an i**in"nt an gra$" "$il u3on 4is 3"rson or3ro3"rt#% or u3on t4" 3"rson or 3ro3"rt# o) 4is s3ous"% "s!"nants or as!"nants% togi$" 4is !ons"nt.

To "t"r*in" t4" "gr"" o) inti*iation% t4" ag"% s"8 an !onition o) t4" 3"rsons4all b" born" in *in.

A t4r"at to "n)or!" on"Ds !lai* t4roug4 !o*3"t"nt aut4orit#% i) t4" !lai* is just or

l"gal% o"s not $itiat" !ons"nt. &16(a'

Art. 1//6. Viol"n!" or inti*iation s4all annul t4" obligation% alt4oug4 it *a# 4a$"b""n "*3lo#" b# a t4ir 3"rson ,4o i not ta:" 3art in t4" !ontra!t. &16'

Art. 1//(. T4"r" is unu" in)lu"n!" ,4"n a 3"rson ta:"s i*3ro3"r a$antag" o) 4is3o,"r o$"r t4" ,ill o) anot4"r% "3ri$ing t4" latt"r o) a r"asonabl" )r""o* o)!4oi!". T4" )ollo,ing !ir!u*stan!"s s4all b" !onsi"r"+ t4" !on)i"ntial% )a*il#%s3iritual an ot4"r r"lations b"t,""n t4" 3arti"s% or t4" )a!t t4at t4" 3"rson all"g"to 4a$" b""n unul# in)lu"n!" ,as su))"ring )ro* *"ntal ,"a:n"ss% or ,as ignorantor in )inan!ial istr"ss. &n'

Art. 1//. T4"r" is )rau ,4"n% t4roug4 insiious ,ors or *a!4inations o) on" o) t4"!ontra!ting 3arti"s% t4" ot4"r is inu!" to "nt"r into a !ontra!t ,4i!4% ,it4outt4"*% 4" ,oul not 4a$" agr"" to. &167'

Art. 1//7. ?ailur" to is!los" )a!ts% ,4"n t4"r" is a ut# to r"$"al t4"*% as ,4"n t4"3arti"s ar" boun b# !on)i"ntial r"lations% !onstitut"s )rau. &n'


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Art. 1/2. T4" usual "8agg"rations in tra"% ,4"n t4" ot4"r 3art# 4a an o33ortunit#to :no, t4" )a!ts% ar" not in t4"*s"l$"s )rauul"nt. &n'

Art. 1/21. A *"r" "83r"ssion o) an o3inion o"s not signi)# )rau% unl"ss *a" b# an"83"rt an t4" ot4"r 3art# 4as r"li" on t4" )or*"rDs s3"!ial :no,l"g". &n'

Art. 1/2. isr"3r"s"ntation b# a t4ir 3"rson o"s not $itiat" !ons"nt% unl"ss su!4*isr"3r"s"ntation 4as !r"at" substantial *ista:" an t4" sa*" is *utual. &n'

Art. 1/2/. isr"3r"s"ntation *a" in goo )ait4 is not )rauul"nt but *a# !onstitut""rror. &n'

Art. 1/22. In or"r t4at )rau *a# *a:" a !ontra!t $oiabl"% it s4oul b" s"rious ans4oul not 4a$" b""n "*3lo#" b# bot4 !ontra!ting 3arti"s.

In!i"ntal )rau onl# oblig"s t4" 3"rson "*3lo#ing it to 3a# a*ag"s. &1('

Art. 1/25. Si*ulation o) a !ontra!t *a# b" absolut" or r"lati$". T4" )or*"r ta:"s3la!" ,4"n t4" 3arti"s o not int"n to b" boun at all- t4" latt"r% ,4"n t4" 3arti"s!on!"al t4"ir tru" agr""*"nt. &n'

Art. 1/26. An absolut"l# si*ulat" or )i!titious !ontra!t is $oi. A r"lati$" si*ulation%,4"n it o"s not 3r"jui!" a t4ir 3"rson an is not int"n" )or an# 3ur3os"!ontrar# to la,% *orals% goo !usto*s% 3ubli! or"r or 3ubli! 3oli!# bins t4" 3arti"sto t4"ir r"al agr""*"nt. &n'

SECTION . Obj"!t o) Contra!ts

Art. 1/2(. All t4ings ,4i!4 ar" not outsi" t4" !o**"r!" o) *"n% in!luing )utur"t4ings% *a# b" t4" obj"!t o) a !ontra!t. All rig4ts ,4i!4 ar" not intrans*issibl" *a#also b" t4" obj"!t o) !ontra!ts.

No !ontra!t *a# b" "nt"r" into u3on )utur" in4"ritan!" "8!"3t in !as"s "83r"ssl#aut4oriB" b# la,.

All s"r$i!"s ,4i!4 ar" not !ontrar# to la,% *orals% goo !usto*s% 3ubli! or"r or3ubli! 3oli!# *a# li:",is" b" t4" obj"!t o) a !ontra!t. &1(1a'

Art. 1/2. I*3ossibl" t4ings or s"r$i!"s !annot b" t4" obj"!t o) !ontra!ts. &1('

Art. 1/27. T4" obj"!t o) "$"r# !ontra!t *ust b" "t"r*inat" as to its :in. T4" )a!tt4at t4" ;uantit# is not "t"r*inat" s4all not b" an obsta!l" to t4" "8ist"n!" o) t4"!ontra!t% 3ro$i" it is 3ossibl" to "t"r*in" t4" sa*"% ,it4out t4" n"" o) a n",!ontra!t b"t,""n t4" 3arti"s. &1(/'

SECTION /. Caus" o) Contra!ts


27/46


28/46

&/' T4" 3o,"r to a*inist"r 3ro3"rt#% or an# ot4"r 3o,"r ,4i!4 4as )or its obj"!t ana!t a33"aring or ,4i!4 s4oul a33"ar in a 3ubli! o!u*"nt% or s4oul 3r"jui!" at4ir 3"rson-

&2' T4" !"ssion o) a!tions or rig4ts 3ro!""ing )ro* an a!t a33"aring in a 3ubli!o!u*"nt.

All ot4"r !ontra!ts ,4"r" t4" a*ount in$ol$" "8!""s )i$" 4unr" 3"sos *usta33"ar in ,riting% "$"n a 3ri$at" on". 9ut sal"s o) goos% !4att"ls or t4ings in a!tionar" go$"rn" b# Arti!l"s% 12/% No. an 125. &1a'"#,ors+?or* o) Contra!ts

CHAPTER $RE?ORATION O? INSTR=ENTS &n'

Art. 1/57. @4"n% t4"r" 4a$ing b""n a *""ting o) t4" *ins o) t4" 3arti"s to a!ontra!t% t4"ir tru" int"ntion is not "83r"ss" in t4" instru*"nt 3ur3orting to "*bo#t4" agr""*"nt% b# r"ason o) *ista:"% )rau% in";uitabl" !onu!t or a!!i"nt% on" o)t4" 3arti"s *a# as: )or t4" r")or*ation o) t4" instru*"nt to t4" "n t4at su!4 tru"int"ntion *a# b" "83r"ss".

I) *ista:"% )rau% in";uitabl" !onu!t% or a!!i"nt 4as 3r"$"nt" a *""ting o) t4"*ins o) t4" 3arti"s% t4" 3ro3"r r"*"# is not r")or*ation o) t4" instru*"nt butannul*"nt o) t4" !ontra!t.

Art. 1/6. T4" 3rin!i3l"s o) t4" g"n"ral la, on t4" r")or*ation o) instru*"nts ar"

4"r"b# ao3t" inso)ar as t4"# ar" not in !on)li!t ,it4 t4" 3ro$isions o) t4is Co".

Art. 1/61. @4"n a *utual *ista:" o) t4" 3arti"s !aus"s t4" )ailur" o) t4" instru*"ntto is!los" t4"ir r"al agr""*"nt% sai instru*"nt *a# b" r")or*".

Art. 1/6. I) on" 3art# ,as *ista:"n an t4" ot4"r a!t" )rauul"ntl# or in";uitabl#in su!4 a ,a# t4at t4" instru*"nt o"s not s4o, t4"ir tru" int"ntion% t4" )or*"r *a#as: )or t4" r")or*ation o) t4" instru*"nt.

Art. 1/6/. @4"n on" 3art# ,as *ista:"n an t4" ot4"r :n", or b"li"$" t4at t4"instru*"nt i not stat" t4"ir r"al agr""*"nt% but !on!"al" t4at )a!t )ro* t4"

)or*"r% t4" instru*"nt *a# b" r")or*".

Art. 1/62. @4"n t4roug4 t4" ignoran!"% la!: o) s:ill% n"glig"n!" or ba )ait4 on t4"3art o) t4" 3"rson ra)ting t4" instru*"nt or o) t4" !l"r: or t#3ist% t4" instru*"nto"s not "83r"ss t4" tru" int"ntion o) t4" 3arti"s% t4" !ourts *a# or"r t4at t4"instru*"nt b" r")or*".

Art. 1/65. I) t,o 3arti"s agr"" u3on t4" *ortgag" or 3l"g" o) r"al or 3"rsonal
http://obligationscontracts.blogspot.com/search/label/Form%20of%20Contractshttp://obligationscontracts.blogspot.com/2008/03/chapter-4_5129.htmlhttp://obligationscontracts.blogspot.com/search/label/Form%20of%20Contractshttp://obligationscontracts.blogspot.com/2008/03/chapter-4_5129.html


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3ro3"rt#% but t4" instru*"nt stat"s t4at t4" 3ro3"rt# is sol absolut"l# or ,it4 a rig4to) r"3ur!4as"% r")or*ation o) t4" instru*"nt is 3ro3"r.

Art. 1/66. T4"r" s4all b" no r")or*ation in t4" )ollo,ing !as"s+

&1' Si*3l" onations int"r $i$os ,4"r"in no !onition is i*3os"-

&' @ills-

&/' @4"n t4" r"al agr""*"nt is $oi.

Art. 1/6(. @4"n on" o) t4" 3arti"s 4as broug4t an a!tion to "n)or!" t4" instru*"nt%4" !annot subs";u"ntl# as: )or its r")or*ation.

Art. 1/6. R")or*ation *a# b" or"r" at t4" instan!" o) "it4"r 3art# or 4issu!!"ssors in int"r"st% i) t4" *ista:" ,as *utual- ot4"r,is"% u3on 3"tition o) t4"

injur" 3art#% or 4is 4"irs an assigns.

Art. 1/67. T4" 3ro!"ur" )or t4" r")or*ation o) instru*"nt s4all b" go$"rn" b# rul"so) !ourt to b" 3ro*ulgat" b# t4" Su3r"*" Court.

CHAPTER %INTERPRETATION O? CONTRACTS

Art. 1/(. I) t4" t"r*s o) a !ontra!t ar" !l"ar an l"a$" no oubt u3on t4" int"ntiono) t4" !ontra!ting 3arti"s% t4" lit"ral *"aning o) its sti3ulations s4all !ontrol.

I) t4" ,ors a33"ar to b" !ontrar# to t4" "$i"nt int"ntion o) t4" 3arti"s% t4" latt"rs4all 3r"$ail o$"r t4" )or*"r. &11'

Art. 1/(1. In or"r to jug" t4" int"ntion o) t4" !ontra!ting 3arti"s% t4"ir!ont"*3oran"ous an subs";u"nt a!ts s4all b" 3rin!i3all# !onsi"r". &1'

Art. 1/(. Ho,"$"r g"n"ral t4" t"r*s o) a !ontra!t *a# b"% t4"# s4all not b"un"rstoo to !o*3r"4"n t4ings t4at ar" istin!t an !as"s t4at ar" i))"r"nt )ro*t4os" u3on ,4i!4 t4" 3arti"s int"n" to agr"". &1/'

Art. 1/(/. I) so*" sti3ulation o) an# !ontra!t s4oul a*it o) s"$"ral *"anings% it

s4all b" un"rstoo as b"aring t4at i*3ort ,4i!4 is *ost a";uat" to r"n"r it"))"!tual. &12'

Art. 1/(2. T4" $arious sti3ulations o) a !ontra!t s4all b" int"r3r"t" tog"t4"r%attributing to t4" oubt)ul on"s t4at s"ns" ,4i!4 *a# r"sult )ro* all o) t4"* ta:"njointl#. &15'

Art. 1/(5. @ors ,4i!4 *a# 4a$" i))"r"nt signi)i!ations s4all b" un"rstoo in t4at


30/46

,4i!4 is *ost in :""3ing ,it4 t4" natur" an obj"!t o) t4" !ontra!t. &16'

Art. 1/(6. T4" usag" or !usto* o) t4" 3la!" s4all b" born" in *in in t4"int"r3r"tation o) t4" a*biguiti"s o) a !ontra!t% an s4all )ill t4" o*ission o)sti3ulations ,4i!4 ar" orinaril# "stablis4". &1('

Art. 1/((. T4" int"r3r"tation o) obs!ur" ,ors or sti3ulations in a !ontra!t s4all not)a$or t4" 3art# ,4o !aus" t4" obs!urit#. &1'

Art. 1/(. @4"n it is absolut"l# i*3ossibl" to s"ttl" oubts b# t4" rul"s "stablis4" int4" 3r"!"ing arti!l"s% an t4" oubts r")"r to in!i"ntal !ir!u*stan!"s o) agratuitous !ontra!t% t4" l"ast trans*ission o) rig4ts an int"r"sts s4all 3r"$ail. I) t4"!ontra!t is on"rous% t4" oubt s4all b" s"ttl" in )a$or o) t4" gr"at"st r"!i3ro!it# o)int"r"sts.

I) t4" oubts ar" !ast u3on t4" 3rin!i3al obj"!t o) t4" !ontra!t in su!4 a ,a# t4at it

!annot b" :no,n ,4at *a# 4a$" b""n t4" int"ntion or ,ill o) t4" 3arti"s% t4"!ontra!t s4all b" null an $oi. &17'

Art. 1/(7. T4" 3rin!i3l"s o) int"r3r"tation stat" in Rul" 1/ o) t4" Rul"s o) Courts4all li:",is" b" obs"r$" in t4" !onstru!tion o) !ontra!ts. &n'

CHAPTER 6RESCISSI9LE CONTRACTS

Art. 1/. Contra!ts $alil# agr"" u3on *a# b" r"s!in" in t4" !as"s "stablis4" b#la,. &17'

Art. 1/1. T4" )ollo,ing !ontra!ts ar" r"s!issibl"+

&1' T4os" ,4i!4 ar" "nt"r" into b# guarians ,4"n"$"r t4" ,ars ,4o* t4"#r"3r"s"nt su))"r l"sion b# *or" t4an on")ourt4 o) t4" $alu" o) t4" t4ings ,4i!4 ar"t4" obj"!t t4"r"o)-

&' T4os" agr"" u3on in r"3r"s"ntation o) abs"nt""s% i) t4" latt"r su))"r t4" l"sionstat" in t4" 3r"!"ing nu*b"r-

&/' T4os" un"rta:"n in )rau o) !r"itors ,4"n t4" latt"r !annot in an# ot4"r *ann"r

!oll"!t t4" !lai*s u" t4"*-

&2' T4os" ,4i!4 r")"r to t4ings un"r litigation i) t4"# 4a$" b""n "nt"r" into b# t4"")"nant ,it4out t4" :no,l"g" an a33ro$al o) t4" litigants or o) !o*3"t"ntjui!ial aut4orit#-

&5' All ot4"r !ontra!ts s3"!iall# "!lar" b# la, to b" subj"!t to r"s!ission. &171a'


31/46

Art. 1/. Pa#*"nts *a" in a stat" o) insol$"n!# )or obligations to ,4os" )ul)ill*"ntt4" "btor !oul not b" !o*3"ll" at t4" ti*" t4"# ,"r" "))"!t"% ar" alsor"s!issibl". &17'

Art. 1//. T4" a!tion )or r"s!ission is subsiiar#- it !annot b" institut" "8!"3t ,4"n

t4" 3art# su))"ring a*ag" 4as no ot4"r l"gal *"ans to obtain r"3aration )or t4"sa*". &172'

Art. 1/2. R"s!ission s4all b" onl# to t4" "8t"nt n"!"ssar# to !o$"r t4" a*ag"s!aus". &n'

Art. 1/5. R"s!ission !r"at"s t4" obligation to r"turn t4" t4ings ,4i!4 ,"r" t4" obj"!to) t4" !ontra!t% tog"t4"r ,it4 t4"ir )ruits% an t4" 3ri!" ,it4 its int"r"st-!ons";u"ntl#% it !an b" !arri" out onl# ,4"n 4" ,4o "*ans r"s!ission !an r"turn,4at"$"r 4" *a# b" oblig" to r"stor".

N"it4"r s4all r"s!ission ta:" 3la!" ,4"n t4" t4ings ,4i!4 ar" t4" obj"!t o) t4"!ontra!t ar" l"gall# in t4" 3oss"ssion o) t4ir 3"rsons ,4o i not a!t in ba )ait4.

In t4is !as"% in"*nit# )or a*ag"s *a# b" "*an" )ro* t4" 3"rson !ausing t4"loss. &175'

Art. 1/6. R"s!ission r")"rr" to in Nos. 1 an o) Arti!l" 1/1 s4all not ta:" 3la!",it4 r"s3"!t to !ontra!ts a33ro$" b# t4" !ourts. &176a'

Art. 1/(. All !ontra!ts b# $irtu" o) ,4i!4 t4" "btor ali"nat"s 3ro3"rt# b# gratuitoustitl" ar" 3r"su*" to 4a$" b""n "nt"r" into in )rau o) !r"itors% ,4"n t4" onor

i not r"s"r$" su))i!i"nt 3ro3"rt# to 3a# all "bts !ontra!t" b")or" t4" onation.

Ali"nations b# on"rous titl" ar" also 3r"su*" )rauul"nt ,4"n *a" b# 3"rsonsagainst ,4o* so*" jug*"nt 4as b""n issu". T4" "!ision or atta!4*"nt n"" notr")"r to t4" 3ro3"rt# ali"nat"% an n"" not 4a$" b""n obtain" b# t4" 3art#s"":ing t4" r"s!ission.

In aition to t4"s" 3r"su*3tions% t4" "sign to ")rau !r"itors *a# b" 3ro$" inan# ot4"r *ann"r r"!ogniB" b# t4" la, o) "$i"n!". &17(a'

Art. 1/. @4o"$"r a!;uir"s in ba )ait4 t4" t4ings ali"nat" in )rau o) !r"itors%

s4all in"*ni)# t4" latt"r )or a*ag"s su))"r" b# t4"* on a!!ount o) t4" ali"nation%,4"n"$"r% u" to an# !aus"% it s4oul b" i*3ossibl" )or 4i* to r"turn t4"*.

I) t4"r" ar" t,o or *or" ali"nations% t4" )irst a!;uir"r s4all b" liabl" )irst% an so onsu!!"ssi$"l#. &17a'

Art. 1/7. T4" a!tion to !lai* r"s!ission *ust b" !o**"n!" ,it4in )our #"ars.


32/46

?or 3"rsons un"r guarians4i3 an )or abs"nt""s% t4" 3"rio o) )our #"ars s4all notb"gin until t4" t"r*ination o) t4" )or*"rDs in!a3a!it#% or until t4" o*i!il" o) t4"latt"r is :no,n. &177'

CHAPTER &

VOI>A9LE CONTRACTS

Art. 1/7. T4" )ollo,ing !ontra!ts ar" $oiabl" or annullabl"% "$"n t4oug4 t4"r" *a#4a$" b""n no a*ag" to t4" !ontra!ting 3arti"s+

&1' T4os" ,4"r" on" o) t4" 3arti"s is in!a3abl" o) gi$ing !ons"nt to a !ontra!t-

&' T4os" ,4"r" t4" !ons"nt is $itiat" b# *ista:"% $iol"n!"% inti*iation% unu"in)lu"n!" or )rau.

T4"s" !ontra!ts ar" bining% unl"ss t4"# ar" annull" b# a 3ro3"r a!tion in !ourt.

T4"# ar" sus!"3tibl" o) rati)i!ation. &n'

Art. 1/71. T4" a!tion )or annul*"nt s4all b" broug4t ,it4in )our #"ars.

T4is 3"rio s4all b"gin+

In !as"s o) inti*iation% $iol"n!" or unu" in)lu"n!"% )ro* t4" ti*" t4" ")"!t o) t4"!ons"nt !"as"s.

In !as" o) *ista:" or )rau% )ro* t4" ti*" o) t4" is!o$"r# o) t4" sa*".

An ,4"n t4" a!tion r")"rs to !ontra!ts "nt"r" into b# *inors or ot4"r in!a3a!itat"3"rsons% )ro* t4" ti*" t4" guarians4i3 !"as"s. &1/1a'

Art. 1/7. Rati)i!ation "8tinguis4"s t4" a!tion to annul a $oiabl" !ontra!t. &1/7a'

Art. 1/7/. Rati)i!ation *a# b" "))"!t" "83r"ssl# or ta!itl#. It is un"rstoo t4at t4"r"is a ta!it rati)i!ation i)% ,it4 :no,l"g" o) t4" r"ason ,4i!4 r"n"rs t4" !ontra!t$oiabl" an su!4 r"ason 4a$ing !"as"% t4" 3"rson ,4o 4as a rig4t to in$o:" its4oul "8"!ut" an a!t ,4i!4 n"!"ssaril# i*3li"s an int"ntion to ,ai$" 4is rig4t.&1/11a'

Art. 1/72. Rati)i!ation *a# b" "))"!t" b# t4" guarian o) t4" in!a3a!itat" 3"rson.&n'

Art. 1/75. Rati)i!ation o"s not r";uir" t4" !on)or*it# o) t4" !ontra!ting 3art# ,4o4as no rig4t to bring t4" a!tion )or annul*"nt. &1/1'

Art. 1/76. Rati)i!ation !l"ans"s t4" !ontra!t )ro* all its ")"!ts )ro* t4" *o*"nt it,as !onstitut". &1/1/'


33/46

Art. 1/7(. T4" a!tion )or t4" annul*"nt o) !ontra!ts *a# b" institut" b# all ,4o ar"t4"r"b# oblig" 3rin!i3all# or subsiiaril#. Ho,"$"r% 3"rsons ,4o ar" !a3abl" !annotall"g" t4" in!a3a!it# o) t4os" ,it4 ,4o* t4"# !ontra!t"- nor !an t4os" ,4o "8"rt"inti*iation% $iol"n!"% or unu" in)lu"n!"% or "*3lo#" )rau% or !aus" *ista:"

bas" t4"ir a!tion u3on t4"s" )la,s o) t4" !ontra!t. &1/a'

Art. 1/7. An obligation 4a$ing b""n annull"% t4" !ontra!ting 3arti"s s4all r"stor" to"a!4 ot4"r t4" t4ings ,4i!4 4a$" b""n t4" subj"!t *att"r o) t4" !ontra!t% ,it4 t4"ir)ruits% an t4" 3ri!" ,it4 its int"r"st% "8!"3t in !as"s 3ro$i" b# la,.

In obligations to r"n"r s"r$i!"% t4" $alu" t4"r"o) s4all b" t4" basis )or a*ag"s.&1//a'

Art. 1/77. @4"n t4" ")"!t o) t4" !ontra!t !onsists in t4" in!a3a!it# o) on" o) t4"3arti"s% t4" in!a3a!itat" 3"rson is not oblig" to *a:" an# r"stitution "8!"3t inso)ar

as 4" 4as b""n b"n")it" b# t4" t4ing or 3ri!" r"!"i$" b# 4i*. &1/2'

Art. 12. @4"n"$"r t4" 3"rson oblig" b# t4" "!r"" o) annul*"nt to r"turn t4"t4ing !an not o so b"!aus" it 4as b""n lost t4roug4 4is )ault% 4" s4all r"turn t4")ruits r"!"i$" an t4" $alu" o) t4" t4ing at t4" ti*" o) t4" loss% ,it4 int"r"st )ro*t4" sa*" at". &1/(a'

Art. 121. T4" a!tion )or annul*"nt o) !ontra!ts s4all b" "8tinguis4" ,4"n t4" t4ing,4i!4 is t4" obj"!t t4"r"o) is lost t4roug4 t4" )rau or )ault o) t4" 3"rson ,4o 4as arig4t to institut" t4" 3ro!""ings.

I) t4" rig4t o) a!tion is bas" u3on t4" in!a3a!it# o) an# on" o) t4" !ontra!ting3arti"s% t4" loss o) t4" t4ing s4all not b" an obsta!l" to t4" su!!"ss o) t4" a!tion%unl"ss sai loss too: 3la!" t4roug4 t4" )rau or )ault o) t4" 3lainti)). &1/12a'

Art. 12. As long as on" o) t4" !ontra!ting 3arti"s o"s not r"stor" ,4at in $irtu" o)t4" "!r"" o) annul*"nt 4" is boun to r"turn% t4" ot4"r !annot b" !o*3"ll" to!o*3l# ,it4 ,4at is in!u*b"nt u3on 4i*. &1/'

CHAPTER 8=NEN?ORCEA9LE CONTRACTS &n'

Art. 12/. T4" )ollo,ing !ontra!ts ar" un"n)or!"abl"% unl"ss t4"# ar" rati)i"+

&1' T4os" "nt"r" into in t4" na*" o) anot4"r 3"rson b# on" ,4o 4as b""n gi$"n noaut4orit# or l"gal r"3r"s"ntation% or ,4o 4as a!t" b"#on 4is 3o,"rs-

&' T4os" t4at o not !o*3l# ,it4 t4" Statut" o) ?raus as s"t )ort4 in t4is nu*b"r. Int4" )ollo,ing !as"s an agr""*"nt 4"r"a)t"r *a" s4all b" un"n)or!"abl" b# a!tion%unl"ss t4" sa*"% or so*" not" or *"*oranu*% t4"r"o)% b" in ,riting% an


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subs!rib" b# t4" 3art# !4arg"% or b# 4is ag"nt- "$i"n!"% t4"r")or"% o) t4"agr""*"nt !annot b" r"!"i$" ,it4out t4" ,riting% or a s"!onar# "$i"n!" o) its!ont"nts+

&a' An agr""*"nt t4at b# its t"r*s is not to b" 3"r)or*" ,it4in a #"ar )ro* t4"

*a:ing t4"r"o)-

&b' A s3"!ial 3ro*is" to ans,"r )or t4" "bt% ")ault% or *is!arriag" o) anot4"r-

&!' An agr""*"nt *a" in !onsi"ration o) *arriag"% ot4"r t4an a *utual 3ro*is" to*arr#-

&' An agr""*"nt )or t4" sal" o) goos% !4att"ls or t4ings in a!tion% at a 3ri!" not l"sst4an )i$" 4unr" 3"sos% unl"ss t4" bu#"r a!!"3t an r"!"i$" 3art o) su!4 goos an!4att"ls% or t4" "$i"n!"s% or so*" o) t4"*% o) su!4 t4ings in a!tion or 3a# at t4"ti*" so*" 3art o) t4" 3ur!4as" *on"#- but ,4"n a sal" is *a" b# au!tion an "ntr#

is *a" b# t4" au!tion""r in 4is sal"s boo:% at t4" ti*" o) t4" sal"% o) t4" a*ountan :in o) 3ro3"rt# sol% t"r*s o) sal"% 3ri!"% na*"s o) t4" 3ur!4as"rs an 3"rson on,4os" a!!ount t4" sal" is *a"% it is a su))i!i"nt *"*oranu*-

&"' An agr""*"nt o) t4" l"asing )or a long"r 3"rio t4an on" #"ar% or )or t4" sal" o)r"al 3ro3"rt# or o) an int"r"st t4"r"in-

&)' A r"3r"s"ntation as to t4" !r"it o) a t4ir 3"rson.

&/' T4os" ,4"r" bot4 3arti"s ar" in!a3abl" o) gi$ing !ons"nt to a !ontra!t.

Art. 122. =naut4oriB" !ontra!ts ar" go$"rn" b# Arti!l" 1/1( an t4" 3rin!i3l"s o)ag"n!# in Titl" < o) t4is 9oo:.

Art. 125. Contra!ts in)ringing t4" Statut" o) ?raus% r")"rr" to in No. o) Arti!l"12/% ar" rati)i" b# t4" )ailur" to obj"!t to t4" 3r"s"ntation o) oral "$i"n!" to3ro$" t4" sa*"% or b# t4" a!!"3tan!" o) b"n")it un"r t4"*.

Art. 126. @4"n a !ontra!t is "n)or!"abl" un"r t4" Statut" o) ?raus% an a 3ubli!o!u*"nt is n"!"ssar# )or its r"gistration in t4" R"gistr# o) >""s% t4" 3arti"s *a#a$ail t4"*s"l$"s o) t4" rig4t un"r Arti!l" 1/5(.

Art. 12(. In a !ontra!t ,4"r" bot4 3arti"s ar" in!a3abl" o) gi$ing !ons"nt% "83r"ss ori*3li" rati)i!ation b# t4" 3ar"nt% or guarian% as t4" !as" *a# b"% o) on" o) t4"!ontra!ting 3arti"s s4all gi$" t4" !ontra!t t4" sa*" "))"!t as i) onl# on" o) t4"* ,"r"in!a3a!itat".

I) rati)i!ation is *a" b# t4" 3ar"nts or guarians% as t4" !as" *a# b"% o) bot4!ontra!ting 3arti"s% t4" !ontra!t s4all b" $aliat" )ro* t4" in!"3tion.


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Art. 12. =n"n)or!"abl" !ontra!ts !annot b" assail" b# t4ir 3"rsons.

CHAPTER 'VOI> AN> INE


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&' @4"n onl# on" o) t4" !ontra!ting 3arti"s is at )ault% 4" !annot r"!o$"r ,4at 4"4as gi$"n b# r"ason o) t4" !ontra!t% or as: )or t4" )ul)ill*"nt o) ,4at 4as b""n3ro*is" 4i*. T4" ot4"r% ,4o is not at )ault% *a# "*an t4" r"turn o) ,4at 4" 4asgi$"n ,it4out an# obligation to !o*3l# 4is 3ro*is". &1/6'

Art. 121/. Int"r"st 3ai in "8!"ss o) t4" int"r"st allo," b# t4" usur# la,s *a# b"r"!o$"r" b# t4" "btor% ,it4 int"r"st t4"r"on )ro* t4" at" o) t4" 3a#*"nt.

Art. 1212. @4"n *on"# is 3ai or 3ro3"rt# "li$"r" )or an ill"gal 3ur3os"% t4"!ontra!t *a# b" r"3uiat" b# on" o) t4" 3arti"s b")or" t4" 3ur3os" 4as b""na!!o*3lis4"% or b")or" an# a*ag" 4as b""n !aus" to a t4ir 3"rson. In su!4 !as"%t4" !ourts *a#% i) t4" 3ubli! int"r"st ,ill t4us b" subs"r$"% allo, t4" 3art#r"3uiating t4" !ontra!t to r"!o$"r t4" *on"# or 3ro3"rt#.

Art. 1215. @4"r" on" o) t4" 3arti"s to an ill"gal !ontra!t is in!a3abl" o) gi$ing!ons"nt% t4" !ourts *a#% i) t4" int"r"st o) justi!" so "*ans allo, r"!o$"r# o)

*on"# or 3ro3"rt# "li$"r" b# t4" in!a3a!itat" 3"rson.

Art. 1216. @4"n t4" agr""*"nt is not ill"gal 3"r s" but is *"r"l# 3ro4ibit"% an t4"3ro4ibition b# t4" la, is "signat" )or t4" 3rot"!tion o) t4" 3lainti))% 4" *a#% i)3ubli! 3oli!# is t4"r"b# "n4an!"% r"!o$"r ,4at 4" 4as 3ai or "li$"r".

Art. 121(. @4"n t4" 3ri!" o) an# arti!l" or !o**oit# is "t"r*in" b# statut"% or b#aut4orit# o) la,% an# 3"rson 3a#ing an# a*ount in "8!"ss o) t4" *a8i*u* 3ri!"allo," *a# r"!o$"r su!4 "8!"ss.

Art. 121. @4"n t4" la, )i8"s% or aut4oriB"s t4" )i8ing o) t4" *a8i*u* nu*b"r o)

4ours o) labor% an a !ontra!t is "nt"r" into ,4"r"b# a labor"r un"rta:"s to ,or:long"r t4an t4" *a8i*u* t4us )i8"% 4" *a# "*an aitional !o*3"nsation )ors"r$i!" r"n"r" b"#on t4" ti*" li*it.

Art. 1217. @4"n t4" la, s"ts% or aut4oriB"s t4" s"tting o) a *ini*u* ,ag" )orlabor"rs% an a !ontra!t is agr"" u3on b# ,4i!4 a labor"r a!!"3ts a lo,"r ,ag"% 4"s4all b" "ntitl" to r"!o$"r t4" ")i!i"n!#.

Art. 12. In !as" o) a i$isibl" !ontra!t% i) t4" ill"gal t"r*s !an b" s"3arat" )ro*t4" l"gal on"s% t4" latt"r *a# b" "n)or!".

Art. 121. T4" ")"ns" o) ill"galit# o) !ontra!t is not a$ailabl" to t4ir 3"rsons ,4os"int"r"sts ar" not ir"!tl# a))"!t".

Art. 12. A !ontra!t ,4i!4 is t4" ir"!t r"sult o) a 3r"$ious ill"gal !ontra!t% is also$oi an in"8ist"nt.

Tit! III. " NATURAL OBLIGATIONS
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Art. 12/. Obligations ar" !i$il or natural. Ci$il obligations gi$" a rig4t o) a!tion to!o*3"l t4"ir 3"r)or*an!". Natural obligations% not b"ing bas" on 3ositi$" la, but on";uit# an natural la,% o not grant a rig4t o) a!tion to "n)or!" t4"ir 3"r)or*an!"%but a)t"r $oluntar# )ul)ill*"nt b# t4" obligor% t4"# aut4oriB" t4" r"t"ntion o) ,4at4as b""n "li$"r" or r"n"r" b# r"ason t4"r"o). So*" natural obligations ar" s"t

)ort4 in t4" )ollo,ing arti!l"s.

Art. 122. @4"n a rig4t to su" u3on a !i$il obligation 4as la3s" b# "8tin!ti$"3r"s!ri3tion% t4" obligor ,4o $oluntaril# 3"r)or*s t4" !ontra!t !annot r"!o$"r ,4at4" 4as "li$"r" or t4" $alu" o) t4" s"r$i!" 4" 4as r"n"r".

Art. 125. @4"n ,it4out t4" :no,l"g" or against t4" ,ill o) t4" "btor% a t4ir3"rson 3a#s a "bt ,4i!4 t4" obligor is not l"gall# boun to 3a# b"!aus" t4" a!tiont4"r"on 4as 3r"s!rib"% but t4" "btor lat"r $oluntaril# r"i*burs"s t4" t4ir 3"rson%t4" obligor !annot r"!o$"r ,4at 4" 4as 3ai.

Art. 126. @4"n a *inor b"t,""n "ig4t""n an t,"nt#on" #"ars o) ag" ,4o 4as"nt"r" into a !ontra!t ,it4out t4" !ons"nt o) t4" 3ar"nt or guarian% a)t"r t4"annul*"nt o) t4" !ontra!t $oluntaril# r"turns t4" ,4ol" t4ing or 3ri!" r"!"i$"%not,it4staning t4" )a!t t4" 4" 4as not b""n b"n")it" t4"r"b#% t4"r" is no rig4t to"*an t4" t4ing or 3ri!" t4us r"turn".

Art. 12(. @4"n a *inor b"t,""n "ig4t""n an t,"nt#on" #"ars o) ag"% ,4o 4as"nt"r" into a !ontra!t ,it4out t4" !ons"nt o) t4" 3ar"nt or guarian% $oluntaril#3a#s a su* o) *on"# or "li$"rs a )ungibl" t4ing in )ul)ill*"nt o) t4" obligation% t4"r"s4all b" no rig4t to r"!o$"r t4" sa*" )ro* t4" oblig"" ,4o 4as s3"nt or !onsu*" itin goo )ait4. &116A'

Art. 12. @4"n% a)t"r an a!tion to "n)or!" a !i$il obligation 4as )ail" t4" ")"nant$oluntaril# 3"r)or*s t4" obligation% 4" !annot "*an t4" r"turn o) ,4at 4" 4as"li$"r" or t4" 3a#*"nt o) t4" $alu" o) t4" s"r$i!" 4" 4as r"n"r".

Art. 127. @4"n a t"stat" or int"stat" 4"ir $oluntaril# 3a#s a "bt o) t4" "!""nt"8!""ing t4" $alu" o) t4" 3ro3"rt# ,4i!4 4" r"!"i$" b# ,ill or b# t4" la, o)int"sta!# )ro* t4" "stat" o) t4" "!"as"% t4" 3a#*"nt is $ali an !annot b"r"s!in" b# t4" 3a#"r.

Art. 12/. @4"n a ,ill is "!lar" $oi b"!aus" it 4as not b""n "8"!ut" in

a!!oran!" ,it4 t4" )or*aliti"s r";uir" b# la,% but on" o) t4" int"stat" 4"irs% a)t"rt4" s"ttl"*"nt o) t4" "bts o) t4" "!"as"% 3a#s a l"ga!# in !o*3lian!" ,it4 a!laus" in t4" ")"!ti$" ,ill% t4" 3a#*"nt is "))"!ti$" an irr"$o!abl".

Tit! IV. " ESTOPPEL (n)Art. 12/1. T4roug4 "sto33"l an a*ission or r"3r"s"ntation is r"n"r" !on!lusi$"u3on t4" 3"rson *a:ing it% an !annot b" "ni" or is3ro$" as against t4" 3"rsonr"l#ing t4"r"on.
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Art. 12/. T4" 3rin!i3l"s o) "sto33"l ar" 4"r"b# ao3t" inso)ar as t4"# ar" not in!on)li!t ,it4 t4" 3ro$isions o) t4is Co"% t4" Co" o) Co**"r!"% t4" Rul"s o) Courtan s3"!ial la,s.

Art. 12//. Esto33"l *a# b" in 3ais or b# "".

Art. 12/2. @4"n a 3"rson ,4o is not t4" o,n"r o) a t4ing s"lls or ali"nat"s an"li$"rs it% an lat"r t4" s"ll"r or grantor a!;uir"s titl" t4"r"to% su!4 titl" 3ass"s b#o3"ration o) la, to t4" bu#"r or grant"".

Art. 12/5. I) a 3"rson in r"3r"s"ntation o) anot4"r s"lls or ali"nat"s a t4ing% t4")or*"r !annot subs";u"ntl# s"t u3 4is o,n titl" as against t4" bu#"r or grant"".

Art. 12/6. A l"ss"" or a bail"" is "sto33" )ro* ass"rting titl" to t4" t4ing l"as" orr"!"i$"% as against t4" l"ssor or bailor.

Art. 12/(. @4"n in a !ontra!t b"t,""n t4ir 3"rsons !on!"rning i**o$abl" 3ro3"rt#%on" o) t4"* is *isl" b# a 3"rson ,it4 r"s3"!t to t4" o,n"rs4i3 or r"al rig4t o$"r t4"r"al "stat"% t4" latt"r is 3r"!lu" )ro* ass"rting 4is l"gal titl" or int"r"st t4"r"in%3ro$i" all t4"s" r";uisit"s ar" 3r"s"nt+

&1' T4"r" *ust b" )rauul"nt r"3r"s"ntation or ,rong)ul !on!"al*"nt o) )a!ts :no,nto t4" 3art# "sto33"-

&' T4" 3art# 3r"!lu" *ust int"n t4at t4" ot4"r s4oul a!t u3on t4" )a!ts as*isr"3r"s"nt"-

&/' T4" 3art# *isl" *ust 4a$" b""n una,ar" o) t4" tru" )a!ts- an

&2' T4" 3art# ")rau" *ust 4a$" a!t" in a!!oran!" ,it4 t4" *isr"3r"s"ntation.

Art. 12/. On" ,4o 4as allo," anot4"r to assu*" a33ar"nt o,n"rs4i3 o) 3"rsonal3ro3"rt# )or t4" 3ur3os" o) *a:ing an# trans)"r o) it% !annot% i) 4" r"!"i$" t4" su*)or ,4i!4 a 3l"g" 4as b""n !onstitut"% s"t u3 4is o,n titl" to ")"at t4" 3l"g" o)t4" 3ro3"rt#% *a" b# t4" ot4"r to a 3l"g"" ,4o r"!"i$" t4" sa*" in goo )ait4an )or $alu".

Art. 12/7. Esto33"l is "))"!ti$" onl# as b"t,""n t4" 3arti"s t4"r"to or t4"irsu!!"ssors in int"r"st.

Tit! V. " TRUSTS (n)CHAPTER 1GENERAL PROVISIONS

Art. 122. A 3"rson ,4o "stablis4"s a trust is !all" t4" trustor- on" in ,4o*
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!on)i"n!" is r"3os" as r"gars 3ro3"rt# )or t4" b"n")it o) anot4"r 3"rson is :no,nas t4" trust""- an t4" 3"rson )or ,4os" b"n")it t4" trust 4as b""n !r"at" isr")"rr" to as t4" b"n")i!iar#.

Art. 1221. Trusts ar" "it4"r "83r"ss or i*3li". E83r"ss trusts ar" !r"at" b# t4"

int"ntion o) t4" trustor or o) t4" 3arti"s. I*3li" trusts !o*" into b"ing b# o3"rationo) la,.

Art. 122. T4" 3rin!i3l"s o) t4" g"n"ral la, o) trusts% inso)ar as t4"# ar" not in!on)li!t ,it4 t4is Co"% t4" Co" o) Co**"r!"% t4" Rul"s o) Court an s3"!ial la,sar" 4"r"b# ao3t".

CHAPTER #E TR=STS

Art. 122(. T4" "nu*"ration o) t4" )ollo,ing !as"s o) i*3li" trust o"s not "8!lu"ot4"rs "stablis4" b# t4" g"n"ral la, o) trust% but t4" li*itation lai o,n in Arti!l"122 s4all b" a33li!abl".

Art. 122. T4"r" is an i*3li" trust ,4"n 3ro3"rt# is sol% an t4" l"gal "stat" isgrant" to on" 3art# but t4" 3ri!" is 3ai b# anot4"r )or t4" 3ur3os" o) 4a$ing t4"b"n")i!ial int"r"st o) t4" 3ro3"rt#. T4" )or*"r is t4" trust""% ,4il" t4" latt"r is t4"

b"n")i!iar#. Ho,"$"r% i) t4" 3"rson to ,4o* t4" titl" is !on$"#" is a !4il%l"giti*at" or ill"giti*at"% o) t4" on" 3a#ing t4" 3ri!" o) t4" sal"% no trust is i*3li"b# la,% it b"ing is3utabl# 3r"su*" t4at t4"r" is a gi)t in )a$or o) t4" !4il.

Art. 1227. T4"r" is also an i*3li" trust ,4"n a onation is *a" to a 3"rson but ita33"ars t4at alt4oug4 t4" l"gal "stat" is trans*itt" to t4" on""% 4" n"$"rt4"l"ss is"it4"r to 4a$" no b"n")i!ial int"r"st or onl# a 3art t4"r"o).
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Art. 125. I) t4" 3ri!" o) a sal" o) 3ro3"rt# is loan" or 3ai b# on" 3"rson )or t4"b"n")it o) anot4"r an t4" !on$"#an!" is *a" to t4" l"n"r or 3a#or to s"!ur" t4"3a#*"nt o) t4" "bt% a trust aris"s b# o3"ration o) la, in )a$or o) t4" 3"rson to ,4o*t4" *on"# is loan" or )or ,4o* its is 3ai. T4" latt"r *a# r"""* t4" 3ro3"rt# an!o*3"l a !on$"#an!" t4"r"o) to 4i*.

Art. 1251. @4"n lan 3ass"s b# su!!"ssion to an# 3"rson an 4" !aus"s t4" l"gal titl"to b" 3ut in t4" na*" o) anot4"r% a trust is "stablis4" b# i*3li!ation o) la, )or t4"b"n")it o) t4" tru" o,n"r.

Art. 125. I) t,o or *or" 3"rsons agr"" to 3ur!4as" 3ro3"rt# an b# !o**on !ons"ntt4" l"gal titl" is ta:"n in t4" na*" o) on" o) t4"* )or t4" b"n")it o) all% a trust is!r"at" b# )or!" o) la, in )a$or o) t4" ot4"rs in 3ro3ortion to t4" int"r"st o) "a!4.

Art. 125/. @4"n 3ro3"rt# is !on$"#" to a 3"rson in r"lian!" u3on 4is "!lar"int"ntion to 4ol it )or% or trans)"r it to anot4"r or t4" grantor% t4"r" is an i*3li"

trust in )a$or o) t4" 3"rson ,4os" b"n")it is !ont"*3lat".

Art. 1252. I) an absolut" !on$"#an!" o) 3ro3"rt# is *a" in or"r to s"!ur" t4"3"r)or*an!" o) an obligation o) t4" grantor to,ar t4" grant""% a trust b# $irtu" o)la, is "stablis4". I) t4" )ul)ill*"nt o) t4" obligation is o))"r" b# t4" grantor ,4"n itb"!o*"s u"% 4" *a# "*an t4" r"!on$"#an!" o) t4" 3ro3"rt# to 4i*.

Art. 1255. @4"n an# trust""% guarian or ot4"r 3"rson 4oling a )iu!iar# r"lations4i3us"s trust )uns )or t4" 3ur!4as" o) 3ro3"rt# an !aus"s t4" !on$"#an!" to b" *a"to 4i* or to a t4ir 3"rson% a trust is "stablis4" b# o3"ration o) la, in )a$or o) t4"3"rson to ,4o* t4" )uns b"long.

Art. 1256. I) 3ro3"rt# is a!;uir" t4roug4 *ista:" or )rau% t4" 3"rson obtaining it is%b# )or!" o) la,% !onsi"r" a trust"" o) an i*3li" trust )or t4" b"n")it o) t4" 3"rson)ro* ,4o* t4" 3ro3"rt# !o*"s.

Art. 125(. An i*3li" trust *a# b" 3ro$" b# oral "$i"n!".

CHAPTER 3IPLIE> TR=STS

Art. 122(. T4" "nu*"ration o) t4" )ollo,ing !as"s o) i*3li" trust o"s not "8!lu"

ot4"rs "stablis4" b# t4" g"n"ral la, o) trust% but t4" li*itation lai o,n in Arti!l"122 s4all b" a33li!abl".

Art. 122. T4"r" is an i*3li" trust ,4"n 3ro3"rt# is sol% an t4" l"gal "stat" isgrant" to on" 3art# but t4" 3ri!" is 3ai b# anot4"r )or t4" 3ur3os" o) 4a$ing t4"b"n")i!ial int"r"st o) t4" 3ro3"rt#. T4" )or*"r is t4" trust""% ,4il" t4" latt"r is t4"b"n")i!iar#. Ho,"$"r% i) t4" 3"rson to ,4o* t4" titl" is !on$"#" is a !4il%l"giti*at" or ill"giti*at"% o) t4" on" 3a#ing t4" 3ri!" o) t4" sal"% no trust is i*3li"


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b# la,% it b"ing is3utabl# 3r"su*" t4at t4"r" is a gi)t in )a$or o) t4" !4il.

Art. 1227. T4"r" is also an i*3li" trust ,4"n a onation is *a" to a 3"rson but ita33"ars t4at alt4oug4 t4" l"gal "stat" is trans*itt" to t4" on""% 4" n"$"rt4"l"ss is"it4"r to 4a$" no b"n")i!ial int"r"st or onl# a 3art t4"r"o).

Art. 125. I) t4" 3ri!" o) a sal" o) 3ro3"rt# is loan" or 3ai b# on" 3"rson )or t4"b"n")it o) anot4"r an t4" !on$"#an!" is *a" to t4" l"n"r or 3a#or to s"!ur" t4"3a#*"nt o) t4" "bt% a trust aris"s b# o3"ration o) la, in )a$or o) t4" 3"rson to ,4o*t4" *on"# is loan" or )or ,4o* its is 3ai. T4" latt"r *a# r"""* t4" 3ro3"rt# an!o*3"l a !on$"#an!" t4"r"o) to 4i*.

Art. 1251. @4"n lan 3ass"s b# su!!"ssion to an# 3"rson an 4" !aus"s t4" l"gal titl"to b" 3ut in t4" na*" o) anot4"r% a trust is "stablis4" b# i*3li!ation o) la, )or t4"b"n")it o) t4" tru" o,n"r.

Art. 125. I) t,o or *or" 3"rsons agr"" to 3ur!4as" 3ro3"rt# an b# !o**on !ons"ntt4" l"gal titl" is ta:"n in t4" na*" o) on" o) t4"* )or t4" b"n")it o) all% a trust is!r"at" b# )or!" o) la, in )a$or o) t4" ot4"rs in 3ro3ortion to t4" int"r"st o) "a!4.

Art. 125/. @4"n 3ro3"rt# is !on$"#" to a 3"rson in r"lian!" u3on 4is "!lar"int"ntion to 4ol it )or% or trans)"r it to anot4"r or t4" grantor% t4"r" is an i*3li"trust in )a$or o) t4" 3"rson ,4os" b"n")it is !ont"*3lat".

Art. 1252. I) an absolut" !on$"#an!" o) 3ro3"rt# is *a" in or"r to s"!ur" t4"3"r)or*an!" o) an obligation o) t4" grantor to,ar t4" grant""% a trust b# $irtu" o)la, is "stablis4". I) t4" )ul)ill*"nt o) t4" obligation is o))"r" b# t4" grantor ,4"n it

b"!o*"s u"% 4" *a# "*an t4" r"!on$"#an!" o) t4" 3ro3"rt# to 4i*.

Art. 1255. @4"n an# trust""% guarian or ot4"r 3"rson 4oling a )iu!iar# r"lations4i3us"s trust )uns )or t4" 3ur!4as" o) 3ro3"rt# an !aus"s t4" !on$"#an!" to b" *a"to 4i* or to a t4ir 3"rson% a trust is "stablis4" b# o3"ration o) la, in )a$or o) t4"3"rson to ,4o* t4" )uns b"long.

Art. 1256. I) 3ro3"rt# is a!;uir" t4roug4 *ista:" or )rau% t4" 3"rson obtaining it is%b# )or!" o) la,% !onsi"r" a trust"" o) an i*3li" trust )or t4" b"n")it o) t4" 3"rson)ro* ,4o* t4" 3ro3"rt# !o*"s.

Art. 125(. An i*3li" trust *a# b" 3ro$" b# oral "$i"n!".

Tit! VI. " SALESCHAPTER 1NAT=RE AN> ?OR O? THE CONTRACT

Art. 125. 9# t4" !ontra!t o) sal" on" o) t4" !ontra!ting 3arti"s obligat"s 4i*s"l) totrans)"r t4" o,n"rs4i3 an to "li$"r a "t"r*inat" t4ing% an t4" ot4"r to 3a#
http://obligationscontracts.blogspot.com/2008/03/title-vi-sales.htmlhttp://obligationscontracts.blogspot.com/2008/03/title-vi-sales.html


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t4"r")or a 3ri!" !"rtain in *on"# or its ";ui$al"nt.

A !ontra!t o) sal" *a# b" absolut" or !onitional. &1225a'

Art. 1257. T4" t4ing *ust b" li!it an t4" $"nor *ust 4a$" a rig4t to trans)"r t4"

o,n"rs4i3 t4"r"o) at t4" ti*" it is "li$"r". &n'

Art. 126. A t4ing is "t"r*inat" ,4"n it is 3arti!ularl# "signat" or 34#si!als"gr"gat" )ro* all ot4"r o) t4" sa*" !lass.

T4" r";uisit" t4at a t4ing b" "t"r*inat" is satis)i" i) at t4" ti*" t4" !ontra!t is"nt"r" into% t4" t4ing is !a3abl" o) b"ing *a" "t"r*inat" ,it4out t4" n"!"ssit# o)a n", or )urt4"r agr""*"nt b"t,""n t4" 3arti"s. &n'

Art. 1261. T4ings 4a$ing a 3ot"ntial "8ist"n!" *a# b" t4" obj"!t o) t4" !ontra!t o)sal".

T4" "))i!a!# o) t4" sal" o) a *"r" 4o3" or "83"!tan!# is ""*" subj"!t to t4"!onition t4at t4" t4ing ,ill !o*" into "8ist"n!".

T4" sal" o) a $ain 4o3" or "83"!tan!# is $oi. &n'

Art. 126. T4" goos ,4i!4 )or* t4" subj"!t o) a !ontra!t o) sal" *a# b" "it4"r"8isting goos% o,n" or 3oss"ss" b# t4" s"ll"r% or goos to b" *anu)a!tur"% rais"%or a!;uir" b# t4" s"ll"r a)t"r t4" 3"r)"!tion o) t4" !ontra!t o) sal"% in t4is Titl"!all" F)utur" goos.F

T4"r" *a# b" a !ontra!t o) sal" o) goos% ,4os" a!;uisition b# t4" s"ll"r "3"nsu3on a !onting"n!# ,4i!4 *a# or *a# not 4a33"n. &n'

Art. 126/. T4" sol" o,n"r o) a t4ing *a# s"ll an uni$i" int"r"st t4"r"in. &n'

Art. 1262. In t4" !as" o) )ungibl" goos% t4"r" *a# b" a sal" o) an uni$i" s4ar" o)a s3"!i)i! *ass% t4oug4 t4" s"ll"r 3ur3orts to s"ll an t4" bu#"r to bu# a ")init"nu*b"r% ,"ig4t or *"asur" o) t4" goos in t4" *ass% an t4oug4 t4" nu*b"r% ,"ig4tor *"asur" o) t4" goos in t4" *ass is un"t"r*in". 9# su!4 a sal" t4" bu#"rb"!o*"s o,n"r in !o**on o) su!4 a s4ar" o) t4" *ass as t4" nu*b"r% ,"ig4t or*"asur" boug4t b"ars to t4" nu*b"r% ,"ig4t or *"asur" o) t4" *ass. I) t4" *ass

!ontains l"ss t4an t4" nu*b"r% ,"ig4t or *"asur" boug4t% t4" bu#"r b"!o*"s t4"o,n"r o) t4" ,4ol" *ass an t4" s"ll"r is boun to *a:" goo t4" ")i!i"n!# )ro*goos o) t4" sa*" :in an ;ualit#% unl"ss a !ontrar# int"nt a33"ars. &n'

Art. 1265. T4ings subj"!t to a r"solutor# !onition *a# b" t4" obj"!t o) t4" !ontra!to) sal". &n'

Art. 1266. In !onstruing a !ontra!t !ontaining 3ro$isions !4ara!t"risti! o) bot4 t4"


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!ontra!t o) sal" an o) t4" !ontra!t o) ag"n!# to s"ll% t4" "ss"ntial !laus"s o) t4",4ol" instru*"nt s4all b" !onsi"r". &n'

Art. 126(. A !ontra!t )or t4" "li$"r# at a !"rtain 3ri!" o) an arti!l" ,4i!4 t4" $"norin t4" orinar# !ours" o) 4is busin"ss *anu)a!tur"s or 3ro!ur"s )or t4" g"n"ral

*ar:"t% ,4"t4"r t4" sa*" is on 4an at t4" ti*" or not% is a !ontra!t o) sal"% but i)t4" goos ar" to b" *anu)a!tur" s3"!iall# )or t4" !usto*"r an u3on 4is s3"!ialor"r% an not )or t4" g"n"ral *ar:"t% it is a !ontra!t )or a 3i"!" o) ,or:. &n'

Art. 126. I) t4" !onsi"ration o) t4" !ontra!t !onsists 3artl# in *on"#% an 3artl# inanot4"r t4ing% t4" transa!tion s4all b" !4ara!t"riB" b# t4" *ani)"st int"ntion o) t4"3arti"s. I) su!4 int"ntion o"s not !l"arl# a33"ar% it s4all b" !onsi"r" a bart"r i) t4"$alu" o) t4" t4ing gi$"n as a 3art o) t4" !onsi"ration "8!""s t4" a*ount o) t4"*on"# or its ";ui$al"nt- ot4"r,is"% it is a sal". &1226a'

Art. 1267. In or"r t4at t4" 3ri!" *a# b" !onsi"r" !"rtain% it s4all b" su))i!i"nt t4at

it b" so ,it4 r")"r"n!" to anot4"r t4ing !"rtain% or t4at t4" "t"r*ination t4"r"o) b"l")t to t4" jug*"nt o) a s3"!ial 3"rson or 3"rsons.

S4oul su!4 3"rson or 3"rsons b" unabl" or un,illing to )i8 it% t4" !ontra!t s4all b"in"))i!a!ious% unl"ss t4" 3arti"s subs";u"ntl# agr"" u3on t4" 3ri!".

I) t4" t4ir 3"rson or 3"rsons a!t" in ba )ait4 or b# *ista:"% t4" !ourts *a# )i8 t4"3ri!".

@4"r" su!4 t4ir 3"rson or 3"rsons ar" 3r"$"nt" )ro* )i8ing t4" 3ri!" or t"r*s b#)ault o) t4" s"ll"r or t4" bu#"r% t4" 3art# not in )ault *a# 4a$" su!4 r"*"i"s against

t4" 3art# in )ault as ar" allo," t4" s"ll"r or t4" bu#"r% as t4" !as" *a# b". &122(a'

Art. 12(. Gross ina";ua!# o) 3ri!" o"s not a))"!t a !ontra!t o) sal"% "8!"3t as it*a# ini!at" a ")"!t in t4" !ons"nt% or t4at t4" 3arti"s r"all# int"n" a onation orso*" ot4"r a!t or !ontra!t. &n'

Art. 12(1. I) t4" 3ri!" is si*ulat"% t4" sal" is $oi% but t4" a!t *a# b" s4o,n to 4a$"b""n in r"alit# a onation% or so*" ot4"r a!t or !ontra!t. &n'

Art. 12(. T4" 3ri!" o) s"!uriti"s% grain% li;uis% an ot4"r t4ings s4all also b"!onsi"r" !"rtain% ,4"n t4" 3ri!" )i8" is t4at ,4i!4 t4" t4ing sol ,oul 4a$" on a

")init" a#% or in a 3arti!ular "8!4ang" or *ar:"t% or ,4"n an a*ount is )i8" abo$"or b"lo, t4" 3ri!" on su!4 a#% or in su!4 "8!4ang" or *ar:"t% 3ro$i" sai a*ountb" !"rtain. &122'

Art. 12(/. T4" )i8ing o) t4" 3ri!" !an n"$"r b" l")t to t4" is!r"tion o) on" o) t4"!ontra!ting 3arti"s. Ho,"$"r% i) t4" 3ri!" )i8" b# on" o) t4" 3arti"s is a!!"3t" b#t4" ot4"r% t4" sal" is 3"r)"!t". &1227a'


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Art. 12(2. @4"r" t4" 3ri!" !annot b" "t"r*in" in a!!oran!" ,it4 t4" 3r"!"ingarti!l"s% or in an# ot4"r *ann"r% t4" !ontra!t is in"))i!a!ious. Ho,"$"r% i) t4" t4ing oran# 3art t4"r"o) 4as b""n "li$"r" to an a33ro3riat" b# t4" bu#"r 4" *ust 3a# ar"asonabl" 3ri!" t4"r")or. @4at is a r"asonabl" 3ri!" is a ;u"stion o) )a!t "3"n"nton t4" !ir!u*stan!"s o) "a!4 3arti!ular !as". &n'

Art. 12(5. T4" !ontra!t o) sal" is 3"r)"!t" at t4" *o*"nt t4"r" is a *""ting o)*ins u3on t4" t4ing ,4i!4 is t4" obj"!t o) t4" !ontra!t an u3on t4" 3ri!".

?ro* t4at *o*"nt% t4" 3arti"s *a# r"!i3ro!all# "*an 3"r)or*an!"% subj"!t to t4"3ro$isions o) t4" la, go$"rning t4" )or* o) !ontra!ts. &125a'

Art. 12(6. In t4" !as" o) a sal" b# au!tion+

&1' @4"r" goos ar" 3ut u3 )or sal" b# au!tion in lots% "a!4 lot is t4" subj"!t o) as"3arat" !ontra!t o) sal".

&' A sal" b# au!tion is 3"r)"!t" ,4"n t4" au!tion""r announ!"s its 3"r)"!tion b# t4")all o) t4" 4a**"r% or in ot4"r !usto*ar# *ann"r. =ntil su!4 announ!"*"nt is *a"%an# bi"r *a# r"tra!t 4is bi- an t4" au!tion""r *a# ,it4ra, t4" goos )ro* t4"sal" unl"ss t4" au!tion 4as b""n announ!" to b" ,it4out r"s"r$".

&/' A rig4t to bi *a# b" r"s"r$" "83r"ssl# b# or on b"4al) o) t4" s"ll"r% unl"ssot4"r,is" 3ro$i" b# la, or b# sti3ulation.

&2' @4"r" noti!" 4as not b""n gi$"n t4at a sal" b# au!tion is subj"!t to a rig4t to bion b"4al) o) t4" s"ll"r% it s4all not b" la,)ul )or t4" s"ll"r to bi 4i*s"l) or to "*3lo#

or inu!" an# 3"rson to bi at su!4 sal" on 4is b"4al) or )or t4" au!tion""r% to "*3lo#or inu!" an# 3"rson to bi at su!4 sal" on b"4al) o) t4" s"ll"r or :no,ingl# to ta:"an# bi )ro* t4" s"ll"r or an# 3"rson "*3lo#" b# 4i*. An# sal" !ontra$"ning t4isrul" *a# b" tr"at" as )rauul"nt b# t4" bu#"r. &n'

Art. 12((. T4" o,n"rs4i3 o) t4" t4ing sol s4all b" trans)"rr" to t4" $"n"" u3on t4"a!tual or !onstru!ti$" "li$"r# t4"r"o). &n'

Art. 12(. T4" 3arti"s *a# sti3ulat" t4at o,n"rs4i3 in t4" t4ing s4all not 3ass to t4"3ur!4as"r until 4" 4as )ull# 3ai t4" 3ri!". &n'

Art. 12(7. A 3ro*is" to bu# an s"ll a "t"r*inat" t4ing )or a 3ri!" !"rtain isr"!i3ro!all# "*anabl".

An a!!"3t" unilat"ral 3ro*is" to bu# or to s"ll a "t"r*inat" t4ing )or a 3ri!"!"rtain is bining u3on t4" 3ro*issor i) t4" 3ro*is" is su33ort" b# a !onsi"rationistin!t )ro* t4" 3ri!". &1251a'

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