Professional Documents
Culture Documents
iii
TABLE OF CONTENTS V. RIGHTS AND OBLIGATIONS OF
SPOUSES ............................................... 40
PERSONS AND FAMILY A. LIVE TOGETHER ................................................ 40
B. FAMILY DOMICILE ............................................. 40
RELATIONS C. SUPPORT ........................................................... 40
D. MANAGEMENT OF FAMILY LIFE ...................... 40
I. EFFECT AND APPLICATION OF LAWS ... 2 E. EFFECT OF NEGLECT OF DUTY ........................ 40
A. WHEN LAWS TAKE EFFECT ................................ 2 F. EXERCISE OF PROFESSION .............................. 40
B. IGNORANCE OF THE LAW .................................. 2 G. USE OF SURNAME ............................................. 41
C. RETROACTIVITY OF LAWS .................................. 2
D. MANDATORY OR PROHIBITORY LAWS ............ 2 VI. PROPERTY RELATIONS OF SPOUSES 41
E. WAIVER OF RIGHTS ............................................. 3 A. MARRIAGE SETTLEMENTS ................................ 41
F. REPEAL OF LAWS ................................................ 3 B. DONATIONS BY REASON OF MARRIAGE ........ 42
G. JUDICIAL DECISIONS .......................................... 3
H. DUTY TO RENDER JUDGMENT .......................... 3 VII. FAMILY RELATIONS ......................... 57
I. PRESUMPTION AND APPLICABILITY OF A. WHAT CONSTITUTES THE FAMILY HOME? ..... 57
CUSTOM ................................................................... 4 B. WHO MAY CONSTITUTE THE FAMILY HOME? 58
J. LEGAL PERIODS ................................................... 4 C. WHEN IS IT DEEMED CONSTITUTED? ............. 58
K. APPLICABILITY OF PENAL LAWS ....................... 4 D. BENEFICIARIES ................................................. 58
L. BINDING EFFECT ................................................. 4 E. WHEN TERMINATED ......................................... 58
L. 1. ARTICLE 15 EMBODIES THE NATIONALITY F. WHEN IT MAY BE SOLD ..................................... 59
PRINCIPLE. [DACASIN V. DACASIN (2010)]................ 5 G. RIGHTS OF CREDITORS .................................... 59
L. 2. ARTICLES 15, 16 AND 17 ARE RULES OF
CONFLICT OF LAWS. ................................................... 5 VIII. PATERNITY AND FILIATION ............ 60
A. LEGITIMATE CHILDREN .................................... 60
II. PERSONS AND PERSONALITY ............. 6 B. PROOF OF FILIATION ........................................ 62
A. CONCEPT OF PERSON AND PERSONALITY ...... 6 C. ILLEGITIMATE CHILDREN ................................. 63
B. COMMENCEMENT AND TERMINATION OF D. LEGITIMATED CHILDREN ................................. 64
PERSONALITY .......................................................... 6
C. DEATH ...................................................................7 IX. ADOPTION ........................................ 66
D. JURIDICAL PERSONS ...........................................7 A. WHO CAN ADOPT.............................................. 66
E. RESTRICTIONS ON CIVIL CAPACITY .................. 8 B. WHO CAN BE ADOPTED (SEC. 8) ..................... 67
E. 1. PRESUMPTION OF CAPACITY.............................. 8 C. PRE-ADOPTION PROCEDURES ....................... 67
E. 2. RESTRICTIONS ON CAPACITY TO ACT ............... 8 D. ADOPTION PROCEDURES................................ 69
F. DOMICILE AND RESIDENCE OF PERSON ......... 12 E. WHO MAY NOT ADOPT/ BE ADOPTED ............ 70
F. RIGHTS OF AN ADOPTED CHILD ...................... 70
III. FAMILY CODE .................................... 14 G. RESCISSION OF ADOPTION .............................. 71
A. EFFECT AND RETROACTIVITY ........................... 14 H. RECTIFICATION OF SIMULATED BIRTH .......... 71
B. REPEAL AND AMENDMENT .............................. 14 I. RA 8043 – THE LAW ON INTER-COUNTRY
IV. MARRIAGE AND PERSONAL ADOPTION (JUNE 7, 1995)...................................... 71
I.1. WHO CAN ADOPT ................................................. 72
RELATIONSHIP BETWEEN SPOUSES ...... 14 I.2. WHO CAN BE ADOPTED ...................................... 72
A. CONCEPT OF MARRIAGE................................... 14
B. AGREEMENTS PRIOR TO MARRIAGE ............... 14 X. SUPPORT ............................................ 73
C. REQUISITES ........................................................ 15 A. WHAT IT COMPRISES .........................................73
C.1. KINDS OF REQUISITES AND EFFECTS OF NON- B. WHO ARE OBLIGED ............................................73
COMPLIANCE .............................................................. 15 C. SUPPORT PENDING LITIGATION ON THE
D. LAW GOVERNING VALIDITY OF MARRIAGES STATUS OF MARRIAGE ......................................... 75
ABROAD .................................................................. 19 D. AMOUNT ............................................................ 75
D.1 GENERAL RULE IN CONTRACTS.......................... 19 E. WHEN DEMANDABLE [ART. 203]..................... 75
D.2 MARRIAGES CELEBRATED ABROAD.................. 19 F. OPTIONS ............................................................ 75
D. 3 FOREIGN DIVORCES ........................................... 19
G. ATTACHMENT ................................................... 75
E. COMMON-LAW MARRIAGES ............................ 20
F. VOID AND VOIDABLE MARRIAGES .................. 20 XI. PARENTAL AUTHORITY AND CUSTODY
F. 1. VOID MARRIAGES................................................ 21
F.2. VOIDABLE OR ANNULLABLE MARRIAGE ..........27
OF CHILDREN ........................................ 75
G. THE LAW ON SEPARATION OF THE SPOUSES 32 XII. EMANCIPATION ................................ 77
G.1 SEPARATION IN FACT ......................................... 32
G.2 ABSOLUTE DIVORCE........................................... 32 XII. SUMMARY JUDICIAL PROCEEDINGS
H. LEGAL SEPARATION ......................................... 33
UNDER FC .............................................. 78
iv
A. PROCEDURAL RULES PROVIDED FOR IN THIS D. LIMITATIONS ON OWNERSHIP .......................102
TITLE SHALL APPLY TO [ART. 238]: ..................... 78 D.1. GENERAL LIMITATIONS: ....................................102
B. SEPARATION IN FACT ....................................... 78 D.2. SPECIFIC LIMITATIONS: ....................................103
C. INCIDENTS INVOLVING PARENTAL AUTHORITY
................................................................................ 79
IV. ACCESSION ...................................... 105
A. CLASSIFICATION OF ACCESSION ...................105
XIII. CARE AND EDUCATION OF CHILDREN A.1. WITH RESPECT TO IMMOVABLES .................... 105
A.2. WITH RESPECT TO MOVABLE PROPERTY ........113
.............................................................. 80
V. QUIETING OF TITLE ............................115
XIV. SURNAMES ..................................... 81 A. IN GENERAL.......................................................115
A. SURNAMES OF CHILDREN ................................ 81 B. PURPOSE ...........................................................115
B. WIFE AFTER AND DURING MARRIAGE ............ 81 C. NATURE: QUASI IN REM ...................................115
C. CONFUSION AND CHANGE OF NAMES ............ 81 D. JUSTIFICATIONS TO BRING AN ACTION TO
XV. RULES GOVERNING PERSONS WHO QUIET TITLE ...........................................................115
E. THE ACTION TO QUIET TITLE DOES NOT APPLY:
ARE ABSENT.......................................... 82 ................................................................................115
A. PROVISIONAL MEASURES IN CASE OF
F. REQUIREMENTS ................................................115
ABSENCE [ARTS. 381-383] .................................... 82 F.1. REQUISITES OF AN ACTION TO QUIET TITLE ... 115
B. DECLARATION OF ABSENCE [ARTS. 384-389] F.2. REQUISITES OF AN ACTION TO PREVENT A
................................................................................ 83 CLOUD: ...................................................................... 116
C. ADMINISTRATION OF THE PROPERTY OF THE G. QUIETING OF TITLE V. REMOVAL OF CLOUD .116
ABSENTEE [ARTS. 387-389] ................................. 83 H. PRESCRIPTION ..................................................116
D. PRESUMPTION OF DEATH [ARTS. 390-392] .. 84
VI. CO-OWNERSHIP ............................... 117
XVI. FUNERALS...................................... 85 A. REQUISITES ....................................................... 117
B. WHAT GOVERNS CO-OWNERSHIP .................. 117
XVII. ENTRIES IN THE CIVIL REGISTER... 86 C. CHARACTERISTICS OF CO-OWNERSHIP ........ 117
A. CIVIL CODE......................................................... 86 D. SOURCES OF CO-OWNERSHIP ........................118
B. RA 9048 AS AMENDED BY RA 10172 ............... 87 D.1. LAW ..................................................................... 119
C. RULE 108, RULES OF COURT ........................... 89 D.2. CONTRACT ......................................................... 119
D.3. INTESTATE SUCCESSION..................................120
D.4. TESTAMENTARY DISPOSITION OR DONATION
INTER VIVOS ..............................................................120
PROPERTY D.5. BY FORTUITOUS EVENT OR BY CHANCE ........120
D.6. BY OCCUPANCY.................................................120
I. CHARACTERISTICS ............................. 92 E. RIGHTS OF CO-OWNERS .................................120
E.1. RIGHT TO SHARE IN THE BENEFITS AS WELL AS
II. CLASSIFICATION................................ 92 THE CHARGES [NCC 485] .........................................120
A. HIDDEN TREASURE .......................................... 92 E.2. RIGHT TO USE THE THING OWNED IN COMMON
B. BASED ON MOBILITY [IMMOVABLE OR [NCC 486] ..................................................................120
MOVABLE] .............................................................. 92 E.3. RIGHT TO BRING AN ORDER IN EJECTMENT
B.1. REAL OR IMMOVABLE PROPERTY..................... 92 [NCC 487] ...................................................................120
B.2. PERSONAL OR MOVABLE .................................. 95 E.4. RIGHT TO COMPEL OTHER CO-OWNERS TO
B.3. IMPORTANCE AND SIGNIFICANCE OF CONTRIBUTE TO THE EXPENSES OF PRESERVATION
CLASSIFICATION UNDER THE NCC .......................... 96 AND TO THE TAXES [NCC 488] ................................120
C. BASED ON OWNERSHIP/ RIGHTS-HOLDER ... 97 E.5. RIGHT TO REPAIR [NCC 489] .............................121
C.1. PUBLIC DOMINION...............................................97 E.6. RIGHT TO OPPOSE ALTERATIONS ....................121
C.2. PRIVATE OWNERSHIP........................................ 98 E.7. RIGHT TO FULL OWNERSHIP OF HIS PART AND
D. BASED ON CONSUMABILITY............................ 99 OF THE FRUITS AND BENEFITS PERTAINING
D.2. NON-CONSUMABLE .......................................... 99 THERETO [NCC 493] ..................................................121
E. BASED ON SUSCEPTIBILITY TO SUBSTITUTION E.8. RIGHT TO PARTITION .........................................121
E.9. RIGHT TO REDEMPTION [NCC 1619] ..................121
................................................................................ 99 E. 10. RIGHT TO PROTEST AGAINST ACTS OF
E.1. FUNGIBLES .......................................................... 99
MAJORITY WHICH ARE PREJUDICIAL TO MINORITY
E.2. NON-FUNGIBLES ................................................ 99 [NCC 492(3)] ...............................................................121
III. OWNERSHIP ..................................... 99 F. IMPLICATIONS OF CO-OWNER’S RIGHT OVER
A. DEFINITION AND CONCEPT ............................. 99 HIS IDEAL SHARE ................................................. 122
B. TYPES OF OWNERSHIP ..................................... 99 G. RULES ............................................................... 122
G.1. ON RENUNCIATION OF SHARE (DIFFERENT
C. RIGHT IN GENERAL ........................................... 99
FROM RENUNCIATION OF CO-OWNERSHIP) ......... 122
C.1. RIGHTS INCLUDED IN OWNERSHIP [NCC 428] 99
G.2. REPAIRS FOR PRESERVATION ........................ 122
C.2. BUNDLE OF RIGHTS ........................................... 99
G.3. EMBELLISHMENTS OR IMPROVEMENTS ........ 122
C.3. PROTECTING PROPERTY ................................. 100
C.4. REMEDIES ...........................................................101 H. TERMINATION OR EXTINGUISHMENT ........... 123
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H.1. TOTAL DESTRUCTION OF THING OR LOSS OF K.2. ASSIGNMENT, EITHER GRATUITOUS OR
THE PROPERTY CO-OWNED .................................... 123 ONEROUS .................................................................. 134
H.2. MERGER OF ALL INTERESTS IN ONE PERSON K.3. POSSESSION BY ANOTHER .............................. 134
................................................................................... 123 L. RULES FOR LOSS OF MOVABLES ................... 134
H.3. ACQUISITIVE PRESCRIPTION ........................... 123 M. KINDS OF ANIMALS......................................... 135
H.4. PARTITION OR DIVISION .................................. 123 M.1. WILD OR FERAL ................................................. 135
H.5. SALE OF PROPERTY CO-OWNED .................... 123 M.2. TAMED ............................................................... 135
H.6. TERMINATION OF PERIOD AGREED UPON BY M.3. DOMESTIC ......................................................... 135
THE CO-OWNERS ..................................................... 123
H.7. EXPROPRIATION; AND ..................................... 123 VIII. USUFRUCT ..................................... 135
H.8. JUDICIAL OR EXTRAJUDUCIAL PARTITON ..... 123 A. OBJECTS OF USUFRUCT ................................. 136
A.1. INDEPENDENT RIGHTS...................................... 136
VII. POSSESSION .................................. 124 A.2. THINGS ............................................................... 136
A. CONCEPT OF POSSESSION ............................. 124 B. CHARACTERISTICS .......................................... 136
B. ESSENTIAL REQUISITES OF POSSESSION ..... 124 B.1. NATURAL CHARACTERISTICS ........................... 136
C. DEGREES OF POSSESSION ............................. 125 C. CLASSIFICATION .............................................. 136
D. CLASSES OF POSSESSION .............................. 125 C.1. BY ORIGIN ........................................................... 136
D.1. POSSESSION FOR ONESELF, OR POSSESSION C.2. BY PERSON ENJOYING THE RIGHT OF
EXERCISED IN ONE’S OWN NAME AND POSSESSION USUFRUCT ................................................................ 137
IN THE NAME OF ANOTHER [NCC 524]................... 125 C.3. BY OBJECT OF USUFRUCT ................................ 137
D.2. POSSESSION IN THE CONCEPT OF AN OWNER, C.4. BY THE EXTENT OF THE USUFRUCT ................ 137
AND POSSESSION IN THE CONCEPT OF A HOLDER D. RIGHTS AND OBLIGATIONS OF
WITH THE OWNERSHIP BELONGING TO ANOTHER USUFRUCTUARY .................................................. 138
[NCC 525] .................................................................. 125 D.1. RIGHTS AS TO THE THING AND ITS FRUITS .... 138
D.3. POSSESSION IN GOOD FAITH AND POSSESSION D.2. RIGHTS AS TO THE LEGAL RIGHT OF USUFRUCT
IN BAD FAITH [NCC 526] .......................................... 126 ITSELF ........................................................................ 141
E. ACQUISITION OF POSSESSION ....................... 127 D.3. OBLIGATIONS AT THE BEGINNING OF THE
E.1. WAYS OF ACQUIRING POSSESSION [NCC 531] 127 USUFRUCT OR BEFORE EXERCISING THE
E.2. BY WHOM MAY POSSESSION BE ACQUIRED USUFRUCT ................................................................ 141
[NCC 532]................................................................... 127 D.4. OBLIGATIONS DURING THE USUFRUCT .........142
F. WHAT DO NOT AFFECT POSSESSION [NCC 537] D.5. AT THE TIME OF THE TERMINATION OF THE
............................................................................... 128 USUFRUCT ................................................................ 143
F.1. ACTS MERELY TOLERATED ............................... 128 E. SPECIAL CASES OF USUFRUCT ...................... 144
F.2. ACTS EXECUTED CLANDESTINELY AND E.1. USUFRUCT OVER A PENSION OR A PERIODICAL
WITHOUT THE KNOWLEDGE OF THE POSSESSOR INCOME [NCC 570] ....................................................144
[NCC 1108].................................................................. 128 E.2. USUFRUCT OF PROPERTY OWNED IN COMMON
F.3. ACTS OF VIOLENCE AS LONG AS THE [NCC 582]...................................................................144
POSSESSOR OBJECTS THERETO [NCC 536]........... 128 E.3. USUFRUCT CONSTITUTED ON A FLOCK OR
G. EFFECTS OF POSSESSION .............................. 128 HERD OF LIVESTOCK [NCC 591] ...............................144
G.1. RIGHTS OF A POSSESSOR IN GOOD FAITH ..... 128 E.4. USUFRUCT OVER FRUIT BEARING TREES AND
G.2. OBLIGATIONS OF A POSSESSOR IN GOOD FAITH SHRUBS AND WOODLANDS [NCC 575-577] ...........144
................................................................................... 129 E.5. USUFRUCT ON A RIGHT OF ACTION TO
G.3. RIGHTS OF A POSSESSOR IN BAD FAITH........ 129 RECOVER PROPERTY [NCC 578] .............................144
G.4. OBLIGATIONS OF A POSSESSOR IN BAD FAITH E.6. USUFRUCT ON MORTGAGED PROPERTY [NCC
................................................................................... 129 600]............................................................................145
G.5. RIGHT TO BE PROTECTED IN HIS .................... 129 E.7. USUFRUCT OVER AN ENTIRE PATRIMONY [NCC
H. REIMBURSEMENT FOR EXPENSES – 598] ............................................................................145
POSSESSOR IN GOOD/BAD FAITH [NCC 546-552] E.8. USUFRUCT OVER DETERIORABLE PROPERTY
...............................................................................130 ....................................................................................145
H.1. NECESSARY EXPENSES .................................... 130 E.9. USUFRUCT OVER CONSUMABLE PROPERTY
H.2. USEFUL EXPENSES ........................................... 130 [NCC 574] ...................................................................145
H.3. EXPENSES FOR LUXURY .................................. 130 F. RIGHTS OF THE OWNER .................................. 145
I. LOSS OR UNLAWFUL DEPRIVATION OF A F.1. AT THE BEGINNING OF THE USUFRUCT...........145
MOVABLE PROPERTY .......................................... 132 F.2. DURING THE USUFRUCT...................................145
I.1. POSSESSION OF MOVABLE ACQUIRED IN GOOD G. EXTINGUISHMENT/ TERMINATION [NCC 603]
FAITH (IN CONCEPT OF OWNER) IS EQUIVALENT TO ............................................................................... 146
TITLE [NCC 559] ........................................................ 132 G.1. DEATH OF USUFRUCTUARY .............................146
I.2. PERIOD TO RECOVER [NCC 1140, 1132, 1133]..... 132 G.2. EXPIRATION OF PERIOD OR FULFILLMENT OF
I.3. FINDER OF LOST MOVABLE [NCC 719-720] ...... 132 RESOLUTORY CONDITION IMPOSED ON USUFRUCT
J. EFFECTS OF POSSESSION IN THE CONCEPT OF BY PERSON CONSTITUTING USUFRUCT ................146
AN OWNER ............................................................ 132 G.3. MERGER OF RIGHTS OF USUFRUCT AND NAKED
OWNERSHIP IN ONE PERSON .................................146
K. LOSS/TERMINATION OF POSSESSION [NCC G.4. RENUNCIATION OF USUFRUCT ....................... 147
555] ........................................................................ 134 G.5. EXTINCTION OR LOSS OF PROPERTY [NCC 608]
K.1. ABANDONMENT................................................. 134 .................................................................................... 147
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G.6. TERMINATION OF THE RIGHT OF PERSON X. NUISANCE ........................................ 164
CONSTITUTING THE USUFRUCT ............................. 147 A. NUISANCE V. TRESPASS ................................. 164
G.7. PRESCRIPTION .................................................. 147
B. NUISANCE V. NEGLIGENCE ............................. 164
H. CONDITIONS NOT AFFECTING USUFRUCT ...148
H.1. EXPRORPIATION OF THING IN USUFRUCT [NCC
C. CLASSES ........................................................... 164
609]............................................................................ 148 C.1. ACCORDING TO NATURE...................................164
C.2. ACCORDING TO SCOPE OF INJURIOUS EFFECTS
H.2. BAD USE OF THING IN USUFRUCT [NCC 610]. 148
....................................................................................165
IX. EASEMENT ...................................... 148 D. DOCTRINE OF ATTRACTIVE NUISANCE ......... 165
A. CHARACTERISTICS ..........................................148 E. LIABILITY IN CASE OF NUISANCE ................... 165
A.1. ESSENTIAL FEATURES: ..................................... 148 E.1. WHO ARE LIABLE................................................165
B. GENERAL RULES ............................................. 150 E.2. LIABILITY OF CREATOR OF NUISANCE ............165
E.3. LIABILITY OF TRANSFEREES.............................166
C. CLASSIFICATION ............................................. 150
E.4. NATURE OF LIABILITY .......................................166
C.1. AS TO RECIPIENT OF BENEFITS ........................ 150
E.5. RIGHT TO RECOVER DAMAGES ........................166
C.2. AS TO ITS EXERCISE [NCC 615]......................... 150
C.3. AS INDICATION OF ITS EXISTENCE [NCC 615] . 150 F. REGULATION OF NUISANCES ......................... 166
C.4. BY THE OBJECT OR OBLIGATION IMPOSED [NCC F.1. PUBLIC NUISANCE .............................................166
616].............................................................................. 151 F.2. PRIVATE NUISANCE........................................... 167
C.5. AS TO CAUSE OR ORIGIN [NCC 619] ................. 151
XI. MODES OF ACQUIRING OWNERSHIP
D. RELEVANCE OF CLASSIFICATIONS ................ 151
D.1. DETERMINES WHAT EASEMENTS CAN BE AND OTHER REAL RIGHTS.................... 168
ACQUIRED BY PRESCRIPTION.................................. 151 A. OCCUPATION ................................................... 168
D.2. DETERMINES WHAT EASEMENTS CAN BE A.1. REQUISITES ........................................................168
ACQUIRED BY TITLE .................................................. 151 A.2. KINDS .................................................................169
D.3. DETERMINES HOW TO COMPUTE THE A.3. SPECIAL RULES [NCC 716] ................................169
PRESCRIPTIVE PERIOD [NCC 621] ............................ 151 B. DONATION ........................................................ 170
D.4. DETERMINES HOW EASEMENT IS LOST BY B.1. OTHER INSTANCES CONSIDERED AS DONATION
PRESCRIPTION [NCC 631 (2)] ................................... 152 .................................................................................... 170
E. CREATION ......................................................... 152 B.2. NATURE .............................................................. 170
E.1. BY TITLE OR BY SOMETHING EQUIVALENT TO A B.3. REQUISITES........................................................ 170
TITLE .......................................................................... 152 B.4. WHAT MAY BE DONATED ................................. 170
E.2. BY LAW (LEGAL EASEMENTS) .......................... 152 B.5. WHAT MAY NOT BE DONATED ......................... 170
E.3. BY WILL OF THE OWNERS (VOLUNTARY C. KINDS OF DONATIONS .................................... 170
EASEMENTS) ............................................................. 152 C.1. AS TO ITS TAKING EFFECT ................................. 170
E.4. BY PRESCRIPTION ............................................. 153 C.2. AS TO CAUSE OR CONSIDERATION ................. 172
F. RIGHTS AND OBLIGATIONS OF OWNERS OF D. FORMALITIES REQUIRED ................................ 172
DOMINANT AND SERVIENT ESTATES ................ 153 D.1. HOW MADE AND ACCEPTED............................. 172
F.1. RIGHTS OF DOMINANT ESTATE OWNER ......... 153 D.2. PERFECTION ...................................................... 173
F.2. OBLIGATIONS OF DOMINANT ESTATE OWNER D.3. QUALIFICATIONS OF DONORS AND DONEES 173
................................................................................... 153 E. EFFECTS OF DONATION / LIMITATIONS ........ 174
F.3. RIGHTS OF THE SERVIENT ESTATE OWNER ... 154 E.1. IN GENERAL ........................................................ 174
F.4. OBLIGATIONS OF SERVIENT ESTATE OWNER 154 E.2. SPECIAL PROVISIONS ....................................... 175
G. EXTINGUISHMENT OF EASEMENTS ...............154 F. VOID DONATIONS [NCC 739-740, 1027] ......... 176
G.1. MERGER ............................................................. 154 F.1. THOSE MADE BETWEEN PERSONS WHO WERE
G.2. BY A NON-USER FOR 10 YEARS ....................... 155 GUILTY OF ADULTERY OR CONCUBINAGE AT THE
G.3. BY IMPOSSIBILITY OF USE ................................ 155 TIME OF THE DONATION .......................................... 176
G.4. EXPIRATION OF THE TERM OR FULFILLMENT OF F.2. THOSE MADE BETWEEN PERSONS FOUND
RESOLUTORY CONDITION ....................................... 155 GUILTY OF THE SAME CRIMINAL OFFENSE, IN
G.5. RENUNCIATION OF THE OWNER OF THE CONSIDERATION THEREOF ..................................... 176
DOMINANT ESTATE .................................................. 155 F.3. THOSE MADE TO A PUBLIC OFFICER OR HIS
G.6. OTHER CAUSES NOT MENTIONED IN NCC 631 WIFE, DESCENDANTS AND ASCENDANTS, BY
................................................................................... 155 REASON OF HIS OFFICE ........................................... 176
H. VOLUNTARY EASEMENTS ...............................156 F.4. THOSE MADE TO PERSONS INCAPACITATED TO
I. LEGAL EASEMENTS ...........................................156 SUCCEED BY WILL. [NCC 1027] ................................ 176
I.1. LAW GOVERNING LEGAL EASEMENTS .............. 156 G. REVOCATION V. REDUCTION.......................... 176
J. KINDS OF PRIVATE LEGAL EASEMENTS .........156 G.1. GROUNDS FOR REDUCTION ............................. 176
J.1. THOSE ESTABLISHED FOR THE USE OF WATERS G.2. REVOCATION ..................................................... 177
OR RELATING TO WATERS ...................................... 156 H. TRADITION ........................................................181
J.2. RIGHT OF WAY.................................................... 157 H.1. REQUISITES ........................................................ 181
J.3. PARTY WALL ....................................................... 159 H.2. PURPOSE ........................................................... 181
J.4. EASEMENT OF LIGHT AND VIEW ....................... 161 H.3. KINDS ................................................................. 181
J.5. DRAINAGE OF BUILDINGS ................................ 163
J.6. INTERMEDIATE DISTANCES .............................. 163 XII. PRESCRIPTION ............................... 182
J.7. LATERAL AND SUBJACENT SUPPORT.............. 163 A. RATIONALE ....................................................... 182
B. KINDS OF PRESCRIPTION ............................... 182
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B.1. ACQUISITIVE PRESCRIPTION ............................ 182 E.1. ACTION FOR SPECIFIC PERFORMANCE (IN
B.2. PRESCRIPTION WHERE POSSESSION IN GOOD OBLIGATION TO GIVE SPECIFIC THING) ................. 203
FAITH CONVERTED INTO POSSESSION IN BAD E.2. ACTION FOR SUBSTITUTED PERFORMANCE (IN
FAITH: ........................................................................ 182 OBLIGATION TO GIVE GENERIC THING AND
B.3. AS A MODE OF ACQUISITION, PRESCRIPTION OBLIGATION TO DO) ................................................ 203
REQUIRES EXISTENCE OF FOLLOWING: ................ 182 E.3. RESCISSION (RESOLUTION IN RECIPROCAL
B.4. EXTINCTIVE PRESCRIPTION ............................. 182 OBLIGATIONS).......................................................... 203
C. NO PRESCRIPTION APPLICABLE .................... 183 E.4. DAMAGES, IN ANY EVENT................................204
C.1. BY OFFENDER .................................................... 183 E.5. SUBSIDIARY REMEDIES OF CREDITORS ........ 205
C.2. REGISTERED LANDS ......................................... 183
C.3. RIGHTS NOT EXTINGUISHED BY PRESCRIPTION III. KINDS OF CIVIL OBLIGATIONS ........ 207
[NCC 1143] .................................................................. 183 A. PURE OBLIGATIONS ....................................... 207
C.4. ACTION TO QUIET TITLE IF PLAINTIFF IS IN B. CONDITIONAL OBLIGATIONS ........................ 207
POSSESSION ............................................................. 183 B.1. KINDS OF CONDITIONS .................................... 207
C.5. VOID CONTRACTS ............................................. 183 B.2. DOCTRINE OF CONSTRUCTIVE FULFILLMENT OF
C.6. ACTION TO DEMAND PARTITION .................... 183 SUSPENSIVE CONDITIONS......................................208
C.7. PROPERTY OF PUBLIC DOMINION ................... 183 B.3. PRINCIPLE OF RETROACTIVITY IN SUSPENSIVE
C.8. PRESCRIPTION DISTINGUISHED FROM LACHES CONDITIONS ............................................................208
................................................................................... 183 B.4. EFFECTS OF THE HAPPENING OF SUSPENSIVE
D. PRESCRIPTION OR LIMITATION OF ACTIONS CONDITIONS ............................................................208
...............................................................................184 C. OBLIGATIONS WITH A PERIOD OR TERM ....... 211
D.1. TO RECOVER MOVABLE PROPERTIES ............. 184 D. ALTERNATIVE OR FACULTATIVE OBLIGATIONS
D.2. TO RECOVER IMMOVABLES ............................. 184 ............................................................................... 213
D.3. OTHER ACTIONS ............................................... 184 E. DIVISIBLE AND INDIVISIBLE OBLIGATIONS ... 215
F. OBLIGATIONS WITH A PENAL CLAUSE .......... 216
XIII. LEASE ............................................ 186
A. GENERAL CONCEPT OF LEASE .......................186 IV. JOINT AND SOLIDARY OBLIGATIONS
A.1. CHARACTERISTICS OF EVERY LEASE ....... 186
A.2. KINDS OF LEASE (ART. 1642) .................... 186
............................................................. 218
B. LEASE OF THINGS ............................................186 A. JOINT OBLIGATIONS ........................................ 218
B.1. GENERAL CONCEPT........................................... 186 A.1 JOINT DIVISIBLE OBLIGATION ............................218
B.2. RIGHTS AND OBLIGATIONS ............................. 187 A.2 JOINT INDIVISIBLE OBLIGATIONS .....................218
B.3. REMEDIES .......................................................... 189 B. SOLIDARY OBLIGATIONS ................................ 219
B.4. LEASE OF RURAL AND URBAN LANDS ........... 189
C. TERMINATION .................................................. 191
V. EXTINGUISHMENT OF OBLIGATIONS
............................................................ 224
A. PAYMENT OR PERFORMANCE ...................... 224
A.1 APPLICATION OF PAYMENTS ............................ 227
OBLIGATIONS A.2. DATION IN PAYMENT ....................................... 227
A.3. PAYMENT BY CESSION..................................... 227
I. OBLIGATIONS .................................... 193 A.4. TENDER OF PAYMENT AND CONSIGNATION 228
A. DEFINITION ....................................................... 193 B. LOSS OF THE THING DUE OR IMPOSSIBILITY
A.1. ELEMENTS OF AN OBLIGATION ........................ 193 OR DIFFICULTY OF PERFORMANCE .................. 229
A.2. DIFFERENT KINDS OF PRESTATIONS ............. 193 C. CONDONATION ................................................ 231
B. CLASSIFICATION OF OBLIGATIONS ................ 193 D. CONFUSION OR MERGER OF RIGHTS .......... 232
E. COMPENSATION ............................................. 232
II. NATURE AND EFFECT OF OBLIGATIONS F. NOVATION ....................................................... 235
............................................................. 196
A. OBLIGATION “TO GIVE” ...................................196
A.1. TYPE OF THINGS: ............................................... 196
A.2. RIGHTS AND DUTIES OF PARTIES: .................. 196 CONTRACTS
B. OBLIGATION “TO DO” OR “NOT TO DO” ........196
B.1. RIGHTS AND DUTIES OF PARTIES: ................... 196 I. GENERAL PROVISIONS ..................... 240
C. BREACH............................................................. 197 A. PRINCIPAL CHARACTERISTICS OF CONTRACTS
C.1. COMPLETE FAILURE TO PERFORM .................. 197 (MARCO) ............................................................... 240
C.2. DEFAULT, DELAY, OR MORA ............................ 197 A. 1. MUTUALITY .......................................................240
C.3. FRAUD (DOLO) IN THE PERFORMANCE OF THE A.2. AUTONOMY (ALSO FREEDOM TO CONTRACT)
OBLIGATION .............................................................. 199 ...................................................................................240
C.4. NEGLIGENCE (CULPA) IN THE PERFORMANCE A.3. RELATIVITY........................................................ 242
OF THE OBLIGATION ............................................... 200 A.4. CONSENSUAL ................................................... 243
C.5. CONTRAVENTION OF THE TENOR OF THE A.5. OBLIGATORY FORCE ........................................ 243
OBLIGATION ............................................................. 202 B. ELEMENTS OF CONTRACTS ........................... 243
D. LEGAL EXCUSE FOR BREACH: ....................... 202 C. CLASSIFICATION OF CONTRACTS ................. 243
E. REMEDIES AVAILABLE IN CASE OF BREACH 203 D. STAGES OF A CONTRACT............................... 244
D.1. CONSENT ........................................................... 244
viii
D.2. OBJECT OF CONTRACTS................................... 251
D.3. CAUSE OF CONTRACTS ................................... 252 SALES
III. FORM OF CONTRACTS .................... 254 I. NATURE AND FORM OF CONTRACT . 283
A. KINDS OF FORMALITIES REQUIRED BY LAW254 A.DEFINITION OF SALES ..................................... 283
A.1. FOR THE VALIDITY OF CONTRACTS (AD ESENTIA B. ESSENTIAL REQUISITES OF A CONTRACT OF
/ AD SOLIMNITATEM/ SOLEMN CONTRACTS) ...... 254 SALE ..................................................................... 283
A.2. FOR THE PURPOSE OF PROVING THE B.1. ESSENTIAL ELEMENTS OF A VALID CONTRACT
EXISTENCE OF THE CONTRACT.............................. 255 OF SALE .................................................................... 283
A.3. FOR THE EFFECTIVITY OF THE CONTRACT B.2. NON-ESSENTIAL ELEMENTS OF A CONTRACT
AGAINST THIRD PERSONS ..................................... 255 OF SALE .................................................................... 287
C. FORM OF CONTRACT OF SALE ...................... 287
IV. REFORMATION OF INSTRUMENTS .. 257 D. STAGES OF CONTRACT OF SALE .................. 287
A. CASES WHERE REFORMATION IS PROPER .. 258 E. OBLIGATIONS CREATED ................................. 287
A.1. MISTAKE ............................................................ 258 E.1 NATURE OF OBLIGATIONS CREATED PER
A.2. FRAUD............................................................... 258 DEFINITION IN ART.1458 ......................................... 287
A.3. INEQUITABLE CONDUCT ................................. 258 F. CHARACTERISTICS OF A CONTRACT OF SALE
A.4. ACCIDENT ......................................................... 258
.............................................................................. 287
A.5. SEVERE PACTO DE RETRO / RELATIVE
F.1. SALE IS TITLE AND NOT MODE ........................ 288
SIMULATION ............................................................ 258
B. WHO MAY ASK FOR REFORMATION [ART. 1368] G. SALE DISTINGUISHED FROM OTHER
.............................................................................. 258 CONTRACTS ......................................................... 288
G.1. DONATION ......................................................... 288
C. CASES WHERE REFORMATION IS NOT PROPER G.2. BARTER ............................................................. 288
.............................................................................. 259 G.3. CONTRACT FOR A PIECE OF WORK ................ 288
G.4. DACION EN PAGO ............................................ 288
V. INTERPRETATION OF CONTRACT ... 259 G.5. CONTRACT TO SELL ......................................... 289
A. PRIMACY OF INTENTION ................................ 260 G.6. AGENCY TO SELL.............................................. 289
B. RULES ON DOUBTS [ART. 1378] ...................... 261 G.7. LEASE ................................................................ 289
C. FROM RULE 123, RULES OF COURT .............. 261 H. KINDS OF CONTRACT OF SALE ..................... 289
VI. DEFECTIVE CONTRACTS ..................262 II. CAPACITY TO BUY OR SELL .............. 290
A. RESCISSIBLE CONTRACTS ............................ 262 A. KINDS OF INCAPACITY ................................... 290
A.1. RESCISSION....................................................... 262 A.1. ABSOLUTE INCAPACITY....................................290
A.2. CHARACTERISTICS OF RESCISSIBLE A.2. RELATIVE INCAPACITY: MARRIED PERSONS.290
CONTRACTS: ............................................................ 263 A.3. SPECIAL DISQUALIFICATIONS.........................290
A.3. DISTINGUISHED FROM B. EFFECTS OF INCAPACITY ................................ 291
RESCISSION/RESOLUTION UNDER ART. 1191 ....... 263 B.1. ABSOLUTE INCAPACITY..................................... 291
A.4. REQUISITES OF A VALID RESCISSION [ART. 1381- B.2. RELATIVE INCAPACITY ...................................... 291
1383, 1385, 1389] ...................................................... 263 B.3. SPECIFIC INCAPACITY/ SPECIAL
B. VOIDABLE CONTRACTS ................................. 266 DISQUALIFICATIONS ................................................ 291
B.2. CHARACTERISTICS OF VOIDABLE CONTRACTS:
.................................................................................. 267 III. EFFECTS OF THE CONTRACT WHEN
B.3. RATIFICATION................................................... 268 THE THING SOLD HAS BEEN LOST ....... 292
C. UNENFORCEABLE CONTRACTS .................... 269 A. RES PERIT DOMINO ........................................ 292
C.1. CHARACTERISTICS: .......................................... 269
B. PRIOR TO PERFECTION OF CONTRACT ........ 292
C.2. KINDS OF UNENFORCEABLE CONTRACTS .... 269
D. VOID OR INEXISTENT CONTRACTS ................ 271 C. AT TIME OF PERFECTION ............................... 292
D. AFTER PERFECTION BUT BEFORE DELIVERY
VII. NATURAL OBLIGATIONS ................ 274 .............................................................................. 292
D.1.LOSS.................................................................... 292
VIII. ESTOPPEL ..................................... 277 D.2. DETERIORATION .............................................. 292
A. DEFINITION .......................................................277 E. AFTER DELIVERY ............................................. 292
B. KINDS OF ESTOPPEL .......................................277
C. LACHES ............................................................ 278 IV. OBLIGATIONS OF THE VENDOR ...... 293
A. OBLIGATIONS OF THE VENDOR IN GENERAL
IX. TRUSTS ........................................... 278 .............................................................................. 293
A. GOVERNING RULES ........................................ 279 B. WHEN SELLER IS NOT THE OWNER .............. 293
B. PARTIES [ART. 1440] ....................................... 279 C. SALE BY PERSON HAVING A VOIDABLE TITLE
C. KINDS OF TRUST ............................................. 279 .............................................................................. 293
C.1. EXPRESS TRUST ............................................... 279 D. MANNER OF TRANSFER ................................ 293
C.2. IMPLIED TRUST ................................................ 280 E. CONCEPT OF DELIVERY .................................. 293
C.3. CONSTRUCTIVE TRUST.................................... 280 E.1. REQUISITES ....................................................... 293
E.2. WHAT TO DELIVER............................................ 294
E.3. WHERE TO DELIVER ......................................... 294
E.4. WHEN TO DELIVER ........................................... 294
ix
F. WHEN DELIVERY DOES NOT TRANSFER TITLE B.8. RIGHT TO REDEEM VS OPTION TO PURCHASE
.............................................................................. 294 ....................................................................................310
G. KINDS OF DELIVERY ....................................... 295 C. EQUITABLE MORTGAGE ................................... 311
G.1.ACTUAL DELIVERY............................................. 295 C.1. PRESUMPTION THAT A CONTRACT IS AN
G.2. CONSTRUCTIVE DELIVERY .............................. 295 EQUITABLE MORTGAGE ............................................311
H. DOUBLE SALES ............................................... 296 C.2. REQUISITES FOR PRESUMPTION OF AN
I. PROPERTY REGISTRATION DECREE .............. 297 EQUITABLE MORTGAGE ............................................311
C.3. RATIONALE BEHIND PROVISION ON EQUITABLE
I.1 REQUISITES FOR REGISTRATION OF DEED OF
MORTGAGE ................................................................311
SALE IN GOOD FAITH .............................................. 297
C.4. REMEDIES OF APPARENT VENDOR .................311
J. RISK OF LOSS (SEE EFFECTS OF CONTRACTS C.5. PERIOD OF REDEMPTION ..................................311
WHERE THE THING IS LOST) .............................. 297 C.6. EXERCISE OF THE RIGHT TO REDEEM ............. 312
K. WARRANTIES .................................................. 297 C.7. HOW REDEMPTION IS EXERCISED ................... 312
K.1 EXPRESS WARRANTIES .................................... 298 D. LEGAL REDEMPTION ....................................... 312
K.2 IMPLIED WARRANTIES ..................................... 298 D.1. DEFINITION......................................................... 312
K.3. EFFECTS OF WARRANTIES .............................. 300 D.2. MANNER ............................................................ 312
K.4. EFFECTS OF WAIVERS ..................................... 300 D.3. PERIOD TO REDEEM ......................................... 313
K.5. BUYER’S OPTIONS IN CASE OF BREACH OF D.4. INSTANCES OF LEGAL REDEMPTION .............. 313
WARRANTY .............................................................. 300
K.6. WARRANTY IN SALE OF CONSUMER GOODS 301 VIII. ASSIGNMENT OF CREDITS............. 315
A. DEFINITION ....................................................... 315
V. OBLIGATIONS OF THE VENDEE........ 302 B. NATURE ............................................................ 315
A. OBLIGATION TO ACCEPT DELIVERY .............. 302
A.1 WHAT IS ACCEPTANCE ...................................... 302
C. PERFECTION ..................................................... 315
A.2 BUYER’S RIGHT TO EXAMINE ........................... 302 D. ASSIGNMENT DISTINGUISHED FROM OTHER
A.3 DELIVERY OF GOODS IN INSTALLMENT ......... 303 TERMS ................................................................... 315
B. OBLIGATION TO PAY THE PRICE.................... 303 E. BINDING EFFECT .............................................. 316
B.1 OBLIGATION TO PAY INTEREST ........................ 303 F. CONSENT NOT NECESSARY ............................ 316
B.2 RIGHT OF VENDEE TO SUSPEND PAYMENT OF G. EFFECT OF PAYMENT BY DEBTOR AFTER
PRICE ........................................................................ 303 ASSIGNMENT OF CREDIT .................................... 316
B.3 PAYMENT IN INSTALLMENTS ........................... 303 H. EXTENT OF ASSIGNMENT OF CREDIT............ 316
C. OBLIGATION TO BEAR THE EXPENSES FOR THE I. WARRANTIES OF THE ASSIGNOR OF CREDIT 316
EXECUTION AND REGISTRATION OF THE SALE I.1. BREACH OF WARRANTIES .................................. 316
AND PUTTING THE GOODS IN A DELIVERABLE I.2 LIABILITIES OF THE ASSIGNOR OF CREDIT ....... 316
STATE, IF SO STIPULATED .................................. 303 I.3 DURATION OF ASSIGNOR’S LIABILITY WHERE
DEBTOR’S SOLVENCY GUARANTEED ..................... 317
VI. BREACH OF CONTRACT OF SALE .... 304 J. SALE OF SUCCESSIONAL OR HEREDITARY
A. GENERAL REMEDIES ...................................... 304 RIGHTS .................................................................. 317
B. REMEDIES OF THE SELLER ............................ 304 K. SALE OF WHOLE OF CERTAIN RIGHTS, RENTS,
B.1. SALE OF MOVABLES ......................................... 304 OR PRODUCTS ..................................................... 317
C. RECTO LAW: SALE OF MOVABLES ON L. LIABILITY OF VENDOR OF INHERITANCE FOR
INSTALLMENT – ARTS. 1484-1486 ..................... 306 FRUITS RECEIVED ................................................ 317
C.1. WHEN APPLICABLE........................................... 306 M. LIABILITY OF VENDEE FOR DEBTS AND
C.2. ALTERNATIVE AND EXCLUSIVE REMEDIES ... 306 CHARGES ON ESTATE .......................................... 317
D. SALE OF IMMOVABLES ................................... 306 N. LEGAL REDEMPTION IN SALE OF CREDIT OR
D.1. RESCISSION FOR ANTICIPATORY BREACH .... 306
OTHER INCORPOREAL RIGHT IN LITIGATION ... 318
D.2. SPECIFIC PERFORMANCE + DAMAGES OR
N.1 REQUISITES FOR THE EXERCISE BY THE DEBTOR
RESCISSION + DAMAGES ........................................ 307
OF THE RIGHT OF LEGAL REDEMPTION: ................ 318
E. PD 957, SECTIONS 23 AND 24 ........................ 307 N.2 PURPOSE OF GRANT OF RIGHT TO DEBTOR .. 318
F. MACEDA LAW (RA 6552): SALE OF N.3 EXCEPTIONS TO THE DEBTOR’S RIGHT OF
IMMOVABLES ON INSTALLMENT ....................... 307 LEGAL REDEMPTION ................................................ 318
G. REMEDIES OF THE BUYER ............................. 308 O. TRANSFER OF OWNERSHIP ........................... 318
G.1. SALE OF MOVABLES ......................................... 308 OBLIGATIONS OF THE VENDOR .............................. 318
G.2. SALE OF IMMOVABLES .................................... 308
IX. DOCUMENTS OF TITLE .................... 319
VII. EXTINGUISHMENT OF SALE .......... 309 A. DEFINITION ....................................................... 319
A. CAUSES ............................................................ 309 B. PURPOSE OF DOCUMENTS OF TITLE ............ 319
B. CONVENTIONAL REDEMPTION ..................... 309 C. NEGOTIABLE DOCUMENTS OF TITLE ............. 319
B.1. DEFINITION........................................................ 309 D. NON-NEGOTIABLE DOCUMENTS OF TITLE ... 319
B.2. PERIOD .............................................................. 309
E. WARRANTIES OF SELLER OF DOCUMENTS OF
B.3. BY WHOM EXERCISED ...................................... 310
B.4. FROM WHOM TO REDEEM ............................... 310 TITLE ...................................................................... 319
B.5. HOW EXERCISED ............................................... 310 F. RULES ON LEVY/GARNISHMENT OF GOODS320
B.6. EFFECT OF REDEMPTION ................................. 310
B.7. EFFECT OF NON-REDEMPTION........................ 310 X. REMEDIES OF AN UNPAID SELLER .. 320
x
A. DEFINITION OF UNPAID SELLER ................... 320 I. POWER OF ATTORNEY HELD BY CORPORATION
B. JUDICIAL REMEDIES OF UNPAID SELLER ..... 320 IN CASE OF VOLUNTARY DISSOLUTION OF
C. ALTERNATIVE REMEDIES OF THE UNPAID CONDOMINIUM CORPORATION [SECTION 15] . 329
SELLER UNDER RECTO LAW ............................... 321 J. SALE, EXCHANGE, LEASE, OR DISPOSITION BY
CORPORATION OF THE COMMON AREAS
XI. PERFORMANCE OF CONTRACT ....... 322 [SECTION 16] ........................................................ 329
A. DELIVERY OF THING SOLD ............................. 322 K. STOCKHOLDER/MEMBER DEMANDING
B. PAYMENT OF PRICE ........................................ 323 PAYMENT FOR SHARES OR INTEREST AKA
XII. THE LAW ON SALE OF SUBDIVISION APPRAISAL RIGHT [SECTION 17] ........................ 329
L. REQUIREMENT FOR REGISTRATION OF
AND CONDOMINIUM (PD 957) ..............324 CONVEYANCE WITH THE REGISTER OF DEEDS
A. DEFINITIONS ................................................... 324 [SECTION 18] ........................................................ 329
B.REQUIREMENTS FOR OWNERS AND M. REALTY TAX ON CONDOMINIUMS [SECTION
DEVELOPERS ....................................................... 324 25] ......................................................................... 329
B.1. REGISTRATION OF PROJECTS [SECTION 4, PD
957] ........................................................................... 324
B.2. REGISTRATION OF OWNER [SECTION 4, PD 957]
.................................................................................. 324
B.3. LICENSE TO SELL [SECTION 5, PD 957] .......... 325
SUCCESSION
C. REQUIREMENT FOR DEALERS, BROKERS, AND I. GENERAL PROVISIONS ...................... 331
SALESMEN (DBS) ................................................. 325 A. DEFINITION ....................................................... 331
C.1. REGISTRATION .................................................. 325
B. OBJECT OF SUCCESSION AND TRANSMISSION
D. CHARACTERISTICS OF SALE OF A
............................................................................... 331
CONDOMINIUM OR SUBDIVISION UNIT AND
C. SUBJECTS OF SUCCESSION ........................... 332
SIMILAR CONTRACTS ......................................... 326
D.1. REGISTRATION OF SALE, ETC [SECTION 17, PD II. TESTAMENTARY SUCCESSION ......... 333
957] ........................................................................... 326
A. WILLS ............................................................... 333
D.2. MORTGAGES ON UNIT OR LOT BY OWNER OR
A.1. IN GENERAL ....................................................... 333
DEVELOPER [SECTION 18, PD 957] ........................ 326
A.2. TESTAMENTARY CAPACITY AND INTENT ...... 334
D.3. ADVERTISEMENTS BY THE OWNER OR
A.3. FORM ................................................................. 335
DEVELOPER [SECTION 19, PD 957] ........................ 326
A.4. CODICILS ........................................................... 339
D.4. NON-FORFEITURE OF PAYMENTS (SECTION 23,
A.5. INCORPORATION BY REFERENCE .................. 340
PD 957) ..................................................................... 326
A.6. REVOCATION .................................................... 340
D.5. FAILURE TO PAY INSTALLMENTS [SECTION 24,
A.7. REPUBLICATION AND REVIVAL ........................ 341
PD 957] ..................................................................... 326
A.8. ALLOWANCE AND DISALLOWANCE OF WILLS
D.6. ISSUANCE OF TITLE [SECTION 25, PD 957] ... 326
.................................................................................... 341
D.7. REALTY TAX [SECTION 26, PD 957] .................327
D.8. NO OTHER CHARGES [SECTION 27, PD 957] ..327 B. INSTITUTION OF HEIR..................................... 342
C. SUBSTITUTION OF HEIRS ............................... 344
XIII. THE CONDOMINIUM ACT (RA 4726) D. TESTAMENTARY DISPOSITIONS WITH A
............................................................. 327 CONDITION, A TERM, AND A MODE .................. 346
A. DEFINITION OF A CONDOMINIUM [SECTION 2] E. LEGITIME .......................................................... 347
.............................................................................. 327 F. DISINHERITANCE ............................................. 351
A.1. OTHER DEFINITIONS [SECTION 3] ....................327 F.1. DISINHERITANCE OF CHILDREN AND
B. TRANSFERS OR CONVEYANCES OF A UNIT OR DESCENDANTS ........................................................ 352
F.2. DISINHERITANCE OF PARENTS AND
AN APARTMENT, OFFICE OR STORE, OR OTHER
ASCENDANTS........................................................... 352
SPACE THEREIN [SECTION 5, RA 4726] ............. 327 F.3. DISINHERITANCE OF A SPOUSE ...................... 352
C. RIGHTS OF A CONDOMINIUM UNIT OWNER G. LEGACIES AND DEVISES ................................ 354
(ASIDE FROM RIGHTS ARISING FROM
OWNERSHIP) [SECTION 6] .................................. 328 III. LEGAL OR INTESTATE SUCCESSION 358
D. PARTITION BY SALE [SECTION 8] .................. 328 A. GENERAL PROVISIONS .................................. 358
E. DECLARATION OF RESTRICTIONS BY OWNER A.1. RELATIONSHIP .................................................. 359
OF PROJECT - PRECONDITION TO CONVEYANCE B. ORDER OF INTESTATE SUCCESSION ............ 362
[SECTION 9].......................................................... 328
F. ASSESSMENT IN ACCORDANCE WITH IV. PROVISIONS COMMON TO TESTATE
DECLARATION OF RESTRICTIONS [SECTION 20] AND INTESTATE SUCCESSION ............. 365
.............................................................................. 328 A. RIGHT OF ACCRETION .................................... 365
G. HOW LIEN ENFORCED AFTER NON-PAYMENT B. CAPACITY TO SUCCEED BY WILL OR INTESTACY
OF ASSESSED FEES [SECTION 20] ..................... 329 .............................................................................. 366
H. INVOLUNTARY DISSOLUTION OF THE C. ACCEPTANCE AND REPUDIATION OF THE
CONDOMINIUM CORPORATION [SECTION 12] . 329 INHERITANCE ...................................................... 367
D. COLLATION...................................................... 369
xi
E. PARTITION AND DISTRIBUTION OF ESTATE 370 B.3. IF THE CONTRACT INVOLVES THINGS
E.1. IN GENERAL ....................................................... 370 BELONGING TO THE PRINCIPAL ............................. 394
E.2. EFFECTS OF PARTITION....................................372
E.3. RESCISSION AND NULLIFICATION OF V. RIGHTS AND OBLIGATIONS OF THIRD
PARTITION ................................................................372 PERSONS ............................................. 395
A. RIGHTS OF THIRD PERSONS ......................... 395
A.1. REQUIRE THE PRESENTATION OF
AUTHORITY/INSTRUCTIONS .................................. 395
AGENCY A.2. RELY ON REPRESENTATIONS BY THE
PRINCIPAL ................................................................ 395
I. DEFINITION OF AGENCY .................... 376 B. OBLIGATIONS OF THIRD PERSONS .............. 395
A. AS A TYPE OF CONTRACT .............................. 376
A.1. ELEMENTS (STATUTORY): .................................376 VI. MODES OF EXTINGUISHMENT ........ 396
A.2. ELEMENTS (JURISPRUDENTIAL) .....................376 A. IN GENERAL..................................................... 396
A.3. BEING A CONTRACT, IT MUST ALSO COMPLY B. REVOCATION ................................................... 396
WITH ART. 1318..........................................................376 B.1. IN GENERAL ....................................................... 396
B. AS A LEGAL RELATIONSHIP ........................... 376 B.2. WHEN REVOCATION IS NOT BINDING ON THIRD
C. EFFECTS OF AGENCY ...................................... 376 PERSONS .................................................................. 396
B.3. APPOINTMENT OF NEW AGENT ...................... 397
II. KINDS OF AGENCY ............................ 377 B.4. DIRECT MANAGEMENT BY THE PRINCIPAL ... 397
A. IN GENERAL ......................................................377 B.5. SPECIAL AUTHORITY REVOKES THE GENERAL
B. AS TO MANNER OF CREATION ...................... 378 AUTHORITY WHERE A SPECIAL MATTER IS
B.1 EXPRESS AGENCY.............................................. 378 INVOLVED ................................................................. 397
B.2 IMPLIED AGENCY .............................................. 378 B.6. WHEN AGENCY CANNOT BE REVOKED .......... 397
C. AS TO EXTENT OF BUSINESS COVERED ....... 379 C. WITHDRAWAL BY THE AGENT ....................... 397
D. AS TO AUTHORITY CONFERRED ................... 379 D. DEATH, CIVIL INTERDICTION, INSANITY OR
D.1 COUCHED IN GENERAL TERMS .........................379 INSOLVENCY ........................................................ 397
D.2 COUCHED IN SPECIFIC TERMS .........................379 D.1. IN GENERAL....................................................... 398
E. SPECIAL KINDS OF AGENCY ............................ 381 D.2. EXCEPTIONS ..................................................... 398
E.1 AGENCY BY ESTOPPEL ....................................... 381 D.3. DEATH OF AGENT............................................. 398
E.2 AGENCY WITH UNDISCLOSED PRINCIPAL ...... 382 E. DISSOLUTION / ACCOMPLISHMENT /
E.3 AGENCY BY OPERATION OF LAW ................ 382 EXPIRATION ......................................................... 398
E.4 IRREVOCABLE AGENCY ................................ 382
F. KINDS OF AGENTS .......................................... 383
F.1 AS TO NATURE AND EXTENT OF AUTHORITY . 383
PARTNERSHIP
III. RIGHTS AND OBLIGATIONS OF THE
AGENT ................................................. 384 I. CONTRACT OF PARTNERSHIP .......... 400
A. RIGHTS OF AGENTS ........................................ 384 A. ELEMENTS: ..................................................... 400
A.1. COMPENSATION ............................................... 384 B. ESSENTIAL FEATURES .................................. 400
A.2. LEND MONEY TO / BORROW MONEY FROM THE B.1. LAWFUL PURPOSE ........................................... 400
AGENCY .................................................................... 384 B.2. COMMON BENEFIT .......................................... 400
A.3. APPOINT A SUBSTITUTE.................................. 384 B.3. JURIDICAL PERSONALITY ................................ 401
A.4. RETAIN IN PLEDGE THE OBJECTS OF AGENCY C. PARTIES ............................................................401
.................................................................................. 385 D. OBJECT .............................................................401
B. OBLIGATIONS OF AGENTS ............................. 386 D.1. OBJECT OF UNIVERSAL PARTNERSHIP .......... 401
B.1. IN GENERAL....................................................... 386 D.2. OBJECT OF PARTICULAR PARTNERSHIP .......402
B.2 FACTOR OR COMMISSION AGENT................... 389 D.3. EFFECT OF UNLAWFUL OBJECT......................402
C. LIABILITY OF AGENTS ..................................... 390 E. FORM ................................................................ 402
C.1. WHEN SOLIDARY .............................................. 390 F. DURATION ....................................................... 402
C.2. WHEN PERSONAL ............................................ 390 F.1. COMMENCEMENT .............................................402
F.2. TERM..................................................................402
IV. RIGHTS AND OBLIGATIONS OF THE F.3. EXTENSION........................................................402
PRINCIPAL............................................392 G.RULES TO DETERMINE EXISTENCE ............... 402
A. OBLIGATIONS .................................................. 392 H. KINDS OF PARTNERSHIPS ............................. 403
A.1. COMPLY WITH THE OBLIGATIONS CONTRACTED H.1. AS TO THE LEGALITY OF ITS EXISTENCE: ....... 403
BY THE AGENT ......................................................... 392 H.2. AS TO ITS OBJECT: ........................................... 403
A.2. ADVANCE OR REIMBURSE SUMS NECESSARY H.3. AS TO ITS DURATION: ...................................... 403
.................................................................................. 392 H.4. AS TO THE LIABILITY OF THE PARTNERS: ..... 403
A.3. INDEMNIFY THE AGENT FOR INJURY ............. 393 H.5. AS TO ITS PUBLICITY: ....................................... 403
A.4. COMPENSATE THE AGENT .............................. 393 H.6. AS TO ITS PURPOSE:........................................ 403
B. LIABILITY OF THE PRINCIPAL ......................... 393 I. KINDS OF PARTNERS ....................................... 404
B.1. IN GENERAL....................................................... 393 J. PARTNERSHIP, DISTINGUISHED FROM OTHER
B.2. BE SOLIDARILY LIABLE .................................... 393 CONTRACTS ......................................................... 405
xii
II. RIGHTS AND OBLIGATIONS OF THE G.5. DOCTRINE OF MARSHALING OF ASSETS ...... 422
G.6. DISTRIBUTION OF PROPERTY OF INSOLVENT
PARTNERSHIP ..................................... 407 PARTNER .................................................................. 422
A. RIGHT TO CONTRIBUTION ............................. 407 H. RIGHTS OF CREDITORS OF DISSOLVED
B. RIGHT TO APPLY PAYMENT RECEIVED TO PARTNERSHIP ..................................................... 423
PARTNERSHIP CREDIT .......................................408 H.1. AS CREDITORS OF THE NEW PARTNERSHIP . 423
C. RIGHT TO RETURN OF CREDIT RECEIVED ....408 H.2. LIABILITY OF A NEW PARTNER ....................... 423
D. RIGHT TO INDEMNITY FOR DAMAGES..........408 H.3. PRIORITY OF CREDITORS OF DISSOLVED
PARTNERSHIP .......................................................... 423
III. RIGHTS AND OBLIGATIONS OF I. RIGHTS OF A RETIRED PARTNER OR A
PARTNERS INTER SE ........................... 409 REPRESENTATIVE OF DECEASED PARTNER .... 423
A. RIGHT TO ASSOCIATE ANOTHER IN SHARE .409 J. RIGHT TO AN ACCOUNT .................................. 424
B. RIGHT TO INSPECT PARTNERSHIP BOOKS ..409
C. RIGHT TO FORMAL ACCOUNT .......................409 VI. LIMITED PARTNERSHIP .................. 424
D. PROPERTY RIGHTS OF PARTNERS ............... 410 B. CHARACTERISTICS ......................................... 424
E. RIGHT TO PARTICIPATE IN MANAGEMENT ... 411 C. GENERAL AND LIMITED PARTNERS
F. RIGHT TO PROFITS AND OBLIGATIONS FOR DISTINGUISHED................................................... 425
LOSSES .................................................................. 412 D. GENERAL AND LIMITED PARTNERSHIP
G. OBLIGATION TO RENDER INFORMATION ..... 413 DISTINGUISHED................................................... 425
H. OBLIGATION TO ACCOUNT AND ACT AS E. FORMATION ..................................................... 425
TRUSTEE ............................................................... 413 E.1. GENERAL REQUIREMENTS .............................. 425
E.2. PURPOSE OF FILING......................................... 426
IV. OBLIGATIONS OF THE E.3. FIRM NAME ....................................................... 426
E.4. FALSE STATEMENT IN THE CERTIFICATE ....... 426
PARTNERSHIP/PARTNERS TO THIRD E.5. GENERAL AND LIMITED PARTNER AT THE SAME
PERSONS.............................................. 413 TIME .......................................................................... 426
A. OBLIGATION TO OPERATE UNDER A FIRM F. MANAGEMENT ................................................ 427
NAME ..................................................................... 413 G. OBLIGATIONS OF A LIMITED PARTNER ........ 427
G.1. OBLIGATIONS RELATED TO CONTRIBUTION . 427
V. DISSOLUTION AND WINDING UP...... 417 G.2. LIABILITY TO PARTNERSHIP CREDITORS ...... 428
A. CONCEPTS ........................................................ 417 G.3. LIABILITY TO SEPARATE CREDITORS ............. 428
B. CAUSES OF DISSOLUTION .............................. 417 H. RIGHTS OF A LIMITED PARTNER ................... 428
B.1. WITHOUT VIOLATION OF THE AGREEMENT .... 417 H.1. IN GENERAL....................................................... 428
B.2. IN CONTRAVENTION OF THE AGREEMENT .... 418 H.2. RIGHT TO TRANSACT BUSINESS WITH THE
B.3. BY OPERATION OF LAW.................................... 418 PARTNERSHIP .......................................................... 428
B.4. BY DECREE OF COURT...................................... 418 H.3. RIGHT TO SHARE IN PROFITS ......................... 429
B.5. OTHER CAUSES ................................................. 418 H.4. RIGHT TO RETURN OF CONTRIBUTION ......... 429
C. EFFECTS OF DISSOLUTION .............................419 H.5. PREFERENCE OF LIMITED PARTNERS ........... 429
C.1. ON AUTHORITY OF THE PARTNERS ................. 419 H.6. RIGHT TO ASSIGN INTEREST .......................... 429
C.1.A. WITH RESPECT TO PARTNERS ...................... 419 H.7. RIGHT TO ASK FOR DISSOLUTION .................. 430
C.1.B. WITH RESPECT TO THIRD PERSONS ............ 419 I. DISSOLUTION ................................................... 430
C.2. ON LIABILITY FOR TRANSACTIONS AFTER J. SETTLEMENT OF ACCOUNTS.......................... 430
DISSOLUTION ........................................................... 419 J.1. ORDER OF PAYMENT......................................... 430
C.3. ON LIABILITY FOR CONTRACTS AFTER J.2. SHARE IN THE PARTNERSHIP ASSETS............. 431
DISSOLUTION BY SPECIFIC CAUSES ...................... 420 K. AMENDMENT OR CANCELLATION OF
C.4. ON EXISTING LIABILITY OF PARTNERS ... 420 CERTIFICATE ......................................................... 431
D. WINDING UP PARTNERS ................................ 420 K.1. CANCELLATION OF CERTIFICATE ..................... 431
D.1. WHO MAY WIND UP .......................................... 420 K.2. AMENDMENT OF CERTIFICATE ........................ 431
D.2. MANNER OF WINDING UP............................... 420 K.3. REQUIREMENTS FOR AMENDMENT OR
E. RIGHTS OF PARTNERS IN CASE OF CANCELLATION......................................................... 431
DISSOLUTION ....................................................... 421
E.1. DISSOLUTION WITHOUT VIOLATION OF THE
AGREEMENT ............................................................. 421
E.2. DISSOLUTION IN CONTRAVENTION OF THE CREDIT TRANSACTIONS
AGREEMENT ............................................................. 421
F. RIGHTS OF PARTNERS IN CASE OF RESCISSION I. LOAN ................................................ 433
............................................................................... 421 A. COMMODATUM ............................................... 433
G. SETTLING OF ACCOUNTS BETWEEN A.1. KINDS OF COMMODATUM ............................... 433
PARTNERS ........................................................... 422 A.2. PARTIES ............................................................ 434
G.1. COMPOSITION OF PARTNERSHIP ASSETS ..... 422 A.3. USE BY THE BAILEE .......................................... 434
G.2. AMOUNT OF CONTRIBUTION FOR LIABILITIES A.4. OBLIGATIONS OF THE BAILEE......................... 434
.................................................................................. 422 A.5. OBLIGATIONS OF THE BAILOR ........................ 434
G.3. ENFORCEMENT OF CONTRIBUTION .............. 422 A.6. LIABILITY FOR DETERIORATION ..................... 435
G.4. ORDER OF APPLICATION OF ASSETS ............ 422 A.7. LIABILITY FOR LOSS ......................................... 435
xiii
A.8. RIGHT OF RETENTION ..................................... 435 I.1. ELEMENTS: .......................................................... 452
A.9. EXTINGUISHMENT ........................................... 435 I.2. EFFECT ON PLEDGE........................................... 452
B. MUTUUM .......................................................... 435 J. EQUITABLE MORTGAGE .................................. 452
B.1. OBLIGATIONS OF THE BORROWER................. 435 J.1. ESSENTIAL REQUISITES .................................... 452
B.2. INTEREST AND SUSPENSION OF USURY LAW
.................................................................................. 436 V. CHATTEL MORTGAGE ...................... 452
B.3. REQUISITES FOR INTEREST TO BE CHARGEABLE A. FORM OF CHATTEL MORTGAGE ................... 452
.................................................................................. 436 A.1. RECORDING REQUIRED ................................... 452
B.4. ELEMENTS OF USURY ......................................437 A.2. CONTENTS OF AN AFFIDAVIT OF GOOD FAITH
................................................................................... 452
II. DEPOSIT ........................................... 437 B. OBLIGATIONS SECURED ................................ 453
A. VOLUNTARY DEPOSIT .................................... 437 C. OBJECTS OF CHATTEL MORTGAGE ............... 453
A.1. EXTINGUISHMENT ............................................ 438 C.1. REASONABLE DESCRIPTION RULE ................. 453
A.2. OBLIGATIONS OF A DEPOSITARY ................... 438 C.2. AFTER ACQUIRED PROPERTIES...................... 453
A.3. AUTHORITY OF DEPOSITARY .......................... 438 D. MORTGAGOR’S RIGHT TO ALIENATE THE
A.4. OBLIGATIONS OF A DEPOSITOR..................... 439 COLLATERAL ....................................................... 453
A.5. AUTHORITY OF DEPOSITOR............................ 439
A.6. RIGHT OF RETENTION ..................................... 439
E. FORECLOSURE ................................................ 453
E.1. EQUITY IN REDEMPTION .................................. 453
B. NECESSARY DEPOSIT ..................................... 439 E.2. NO RIGHT OF REDEMPTION ............................ 453
B.1. KINDS OF NECESSARY DEPOSIT ..................... 439
E.3. RIGHT TO POSSESSION.................................... 453
B.2. DEPOSIT BY TRAVELERS IN HOTELS AND INNS
E.4. RIGHT TO SURPLUS OR DEFICIENCY .............. 453
.................................................................................. 439
B.3. EXTENT OF LIABILITY UNDER ART.1998 ........ 439 VI. REAL MORTGAGE ........................... 454
B.4. WHEN HOTEL-KEEPER LIABLE ....................... 440
A. OBJECTS OF REAL MORTGAGE ..................... 454
B.5. WHEN HOTEL-KEEPER NOT LIABLE ............... 440
B.6. HOTEL-KEEPER’S RIGHT TO RETENTION ...... 440 B. OBLIGATIONS SECURED ................................ 454
C. JUDICIAL DEPOSIT OR SEQUESTRATION .....440 C. CHARACTERISTICS ......................................... 454
C.1. NATURE AND PURPOSE................................... 440 C.1. CHARACTERISTICS OF THE COLLATERAL ...... 454
C.2. DEPOSITARY OF SEQUESTERED PROPERTY. 440 C.2. CHARACTERISTICS OF THE MORTGAGE ........ 454
C.3. APPLICABLE LAW ............................................. 440 D. KINDS ............................................................... 455
E. PRINCIPLE OF INDIVISIBILITY OF
III. GUARANTY AND SURETYSHIP......... 441 PLEDGE/MORTGAGE .......................................... 455
A. NATURE AND EXTENT OF GUARANTY ...........441 F. RECORDING REQUIRED ................................. 456
B. NATURE AND EXTENT OF SURETYSHIP ....... 444 G. FORECLOSURE OF MORTGAGE .................... 456
C. EFFECT OF GUARANTY ................................... 444 G.1. JUDICIAL FORECLOSURE ................................. 456
C.1. EFFECTS OF GUARANTY BETWEEN THE G.2. EXTRAJUDICIAL FORECLOSURE ..................... 457
GUARANTOR AND THE CREDITOR ........................ 444 G.3. NATURE OF POWER OF FORECLOSURE BY
C.2. EFFECTS OF GUARANTY BETWEEN THE DEBTOR EXTRAJUDICIAL SALE .............................................. 458
AND THE GUARANTOR ........................................... 446 G.4. RIGHT TO SURPLUS OR DEFICIENCY ............. 458
C.3. EFFECTS OF GUARANTY AS BETWEEN CO- G.5. EFFECT OF INADEQUACY OF PRICE IN
GUARANTORS ......................................................... 447 FORECLOSURE SALE ............................................... 458
D. EXTINGUISHMENT OF GUARANTY ................ 448 H. WAIVER OF SECURITY BY CREDITOR............ 458
E. LEGAL AND JUDICIAL BONDS ........................ 448 I. REDEMPTION .................................................... 459
I.1. KINDS................................................................... 459
IV. PLEDGE .......................................... 449
A. CHARACTERISTICS ......................................... 449 VII. ANTICHRESIS................................. 460
B. KINDS ............................................................... 449 A. CHARACTERISTICS ......................................... 460
B.1. LEGAL PLEDGE / PLEDGE BY OPERATION OF B. FORMAL REQUISITES ..................................... 460
LAW [ARTS. 2121-2122] ............................................ 449 C. OBJECT OF THE CONTRACT ........................... 460
C. ESSENTIAL REQUISITES ................................. 449 D. AS DISTINGUISHED FROM OTHER CONTRACTS
C.1. PROVISIONS COMMON TO PLEDGE AND .............................................................................. 460
MORTGAGE [ART. 2085] ......................................... 449 E. OBLIGATIONS OF ANTICHRETIC CREDITOR . 460
C.2. PROVISIONS APPLICABLE ONLY TO PLEDGE 450 F. REMEDIES OF CREDITOR IN CASE OF NON-
D. REQUISITES FOR PERFECTION .....................450 PAYMENT OF DEBT .............................................. 461
E. OBLIGATIONS OF PLEDGEE ...........................450
F. RIGHTS OF PLEDGOR ......................................450 VIII. QUASI-CONTRACTS ....................... 461
G. FORECLOSURE.................................................451 A. NEGOTIORUM GESTIO (UNAUTHORIZED
G.1. REQUIREMENTS IN SALE OF THE THING MANAGEMENT) .................................................... 461
PLEDGED BY A CREDITOR, IF CREDIT IS NOT PAID A.1. OBLIGATIONS OF A GESTOR .............................461
ON TIME ..................................................................... 451 A.2. OBLIGATIONS OF THE OWNER OF THE
G.2. EFFECTS OF THE SALE OF THE THING PLEDGED PROPERTY OR BUSINESS ....................................... 462
................................................................................... 451 A.3. EFFECT OF RATIFICATION ............................... 462
H. PLEDGE AS DISTINGUISHED FROM CHATTEL A.4. EXTINGUISHMENT OF MANAGEMENT ........... 462
MORTGAGE [ARTS. 2140, 1484] ..........................451 B. SOLUTIO INDEBITI (UNDUE PAYMENT) ........ 462
I. PACTUM COMMISSORIUM .............................. 452 B.1. WHEN DEBT NOT YET DUE ............................... 463
xiv
B.2. RESPONSIBILITY OF TWO OR MORE PAYEES 463 A.2. REGISTRATION OF DEALINGS LESS THAN
B.3. WHEN MONEY OR THING DELIVERED IS OWNED OWNERSHIP [SEC. 54, PD 1529] ............................. 489
BY THIRD PERSON................................................... 463 A.3. REGISTRATION OF DEEDS OF SALE AND
B.4. LIABILITY OF PAYEE ......................................... 463 TRANSFERS..............................................................490
B.5. EXEMPTION FROM THE OBLIGATION TO A.4. REGISTRATION OF MORTGAGES AND LEASES
RESTORE THE PAYMENT UNDULY MADE ............. 463 [SEC. 60, PD 1529] ....................................................490
B.6. PRESUMPTION OF PAYMENT BY MISTAKE, A.5. REGISTRATION OF POWERS OF ATTORNEYS490
DEFENSE .................................................................. 463 A.6. REGISTRATION OF TRUSTS .............................490
C. OTHER QUASI-CONTRACTS ........................... 463 B. INVOLUNTARY DEALINGS ............................... 491
B.1. REGISTRATION OF ATTACHMENT ....................491
IX. CONCURRENCE AND PREFERENCE OF B.2. REGISTRATION OF ADVERSE CLAIM .............. 492
CREDITS .............................................. 465 B.3. REGISTRATION OF EXECUTION AND TAX
A. WHEN RULES ON PREFERENCE APPLICABLE DELINQUENCY SALES ............................................. 492
B.4. REGISTRATION OF NOTICE LIS PENDENS ..... 493
.............................................................................. 465
B. CLASSIFICATION OF CREDITS........................ 465 VI. CADASTRAL REGISTRATION .......... 494
B.1. SPECIAL PREFERRED CREDITS ON SPECIFIC A. PROCEDURE IN CADASTRAL REGISTRATION:
MOVABLE PROPERTY.............................................. 466
B.2. SPECIAL PREFERRED CREDITS ON SPECIFIC
SEC. 35 AND 36, PD 1529 .................................... 495
IMMOVABLE PROPERTY AND REAL RIGHTS......... 467 VII. JUDICIAL CONFIRMATION OF
B.3. ORDINARY PREFERRED CREDITS .................. 467
B.4. COMMON CREDITS .......................................... 468 IMPERFECT TITLE ................................ 496
C. ORDER OF PREFERENCE OF CREDITS .......... 468 A. FILING OF THE APPLICATION: ....................... 497
D. EXEMPT PROPERTY ........................................ 468 B. PROCEDURE IN JUDICIAL CONFIRMATION: . 497
C. EVIDENCE NECESSARY TO SUBSTANTIATE
I. TORRENS SYSTEM ............................. 471 APPLICATION: ...................................................... 498
A. GENERAL PRINCIPLES ..................................... 471
DEED .......................................................................... 471 VIII. REMEDIES .................................... 498
A.1. LAND REGISTRATION ........................................ 471 A. ANNULMENT OF JUDGMENT [SEE RULE 47,
A.2. CLASSIFICATION OF LANDS: [ART. XII, SEC. 3 OF ROC] ..................................................................... 498
THE 1987 CONSTITUTION]....................................... 472 B. PETITION TO REOPEN OR REVIEW DECREE OF
B. TORRENS SYSTEM .......................................... 473 REGISTRATION – SEC. 32, PD 1529 .................... 499
C. ADMINISTRATION OF THE TORRENS SYSTEM C. ACTION FOR RECONVEYANCE: ..................... 499
.............................................................................. 474 D. QUIETING OF TITLE – REMEDY FOR THE
D. CERTIFICATE OF TITLE ................................... 474 REMOVAL OF ANY CLOUD OF DOUBT OR
E. EFFECT OF REGISTRATION UNDER THE UNCERTAINTY WITH RESPECT TO REAL
TORRENS SYSTEM .............................................. 474 PROPERTY ...........................................................500
E.1. EFFECT OF NON-REGISTRATION ..................... 475 E. CANCELLATION OF TITLE ...............................500
E.2. DEALINGS IN LAND BEFORE ISSUANCE OF
F. ACTION FOR DAMAGES ..................................500
DECREE .................................................................... 475
E.3. LACHES, WHEN APPLICABLE .......................... 476 G. ACTION FOR COMPENSATION FROM THE
ASSURANCE FUND .............................................500
II. THE REGALIAN DOCTRINE ...............476 H. REVERSION .....................................................500
A. EFFECTS ........................................................... 477
B. CONCEPT OF NATIVE TITLE, TIME IMMEMORIAL IX. PETITIONS AND MOTIONS AFTER
POSSESSION ........................................................ 477 ORIGINAL REGISTRATION .................... 501
B.1. CERTIFICATE OF ANCESTRAL DOMAIN TITLE 478
B.2. ANCESTRAL DOMAINS .................................... 478 X. DEALINGS WITH UNREGISTERED
LANDS ................................................. 502
III. CITIZENSHIP REQUIREMENT ...........479
A. INDIVIDUALS ................................................... 479 XI. NON-REGISTRABLE PROPERTIES .. 503
A.1. THE KRIVENKO DOCTRINE ............................... 479 A. CIVIL CODE PROVISIONS DEALING WITH NON-
B. CORPORATIONS..............................................480 REGISTRABLE PROPERTIES ............................... 503
B. SPECIFIC KINDS OF NON-REGISTRABLE
IV. ORIGINAL REGISTRATION .............. 480 PROPERTIES OR LANDS ..................................... 504
A. KINDS OF ORIGINAL REGISTRATION: ...........480
B. WHO MAY APPLY:.............................................481
C. PROCEDURE IN ORDINARY LAND
REGISTRATION .................................................... 482 TORTS
D. EVIDENCE NECESSARY .................................. 486
I. PRELIMINARY CONSIDERATIONS ..... 507
V. SUBSEQUENT REGISTRATION ..........487 A. DEFINITION OF TORT...................................... 507
A. VOLUNTARY DEALINGS ................................. 489 A.1. ACCORDING TO MANNER OF COMMISSION .. 507
A.1. REGISTRATION OF VOLUNTARY INSTRUMENTS A.2. ACCORDING TO SCOPE.................................... 507
IN GENERAL ............................................................. 489 B. DEFINITION OF QUASI-DELICT ...................... 507
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C. CULPA AQUILIANA DISTINGUISHED FROM A.6. HEAD OF A FAMILY FOR THINGS THROWN OR
CRIME ................................................................... 507 FALLING .................................................................... 537
D. CULPA AQUILIANA DISTINGUISHED FROM A.7. PRODUCTS LIABILITY ....................................... 537
CULPA CONTRACTUAL; PRESENCE OF A.8. NUISANCE .........................................................540
CONTRACTUAL RELATIONS ...............................508
D.1. AS TO SOURCE .................................................. 508
D.2. AS TO BURDEN OF PROOF ............................. 508
D.3. AS TO APPLICABILITY OF THE DOCTRINE OF DAMAGES
PROXIMATE CAUSE ................................................. 508
D.4. AS TO THE DEFENSE OF AN EMPLOYER FOR I. DAMAGES ......................................... 547
THE NEGLIGENCE OF AN EMPLOYEE..................... 508 A. DEFINITION ...................................................... 547
B. WHEN ALLOWED ............................................. 547
II. QUASI-DELICT ................................. 509 C. TYPES OF DAMAGES ....................................... 547
A. NEGLIGENCE ...................................................509
A.1. DEFAULT STANDARD OF CARE: GOOD FATHER II. ACTUAL & COMPENSATORY DAMAGES
OF A FAMILY............................................................. 509 ............................................................ 548
A.2. STANDARD OF CARE NEEDED IN SPECIFIC A. REQUISITES ..................................................... 548
CIRCUMSTANCES .................................................... 509 B. WHEN IS A PERSON ENTITLED? .................... 548
A.3. PRESUMPTIONS OF NEGLIGENCE .................... 511
A.4. PERSONS LIABLE .............................................. 513
C. EXTENT OR SCOPE OF ACTUAL DAMAGES .. 549
C.1 IN CONTRACTS AND QUASI-CONTRACTS ....... 549
B. CAUSE ...............................................................518 C.2 IN CRIMES AND QUASI-DELICTS ......................550
C. DEFENSES ........................................................ 520 C.3 IN RAPE CASES .................................................. 552
C.1. DUE DILIGENCE TO PREVENT THE DAMAGE D. ATTORNEY’S FEES AND EXPENSES OF
UNDER ARTICLE 2180 ............................................. 520
C.2. ACTS OF PUBLIC OFFICERS .............................. 521
LITIGATION........................................................... 552
C.3. AUTHORITY OF LAW ......................................... 521 E. INTEREST ......................................................... 553
C.4. DAMNUM ABSQUE INJURIA ............................. 521
C.5. PLAINTIFF’S NEGLIGENCE IS THE PROXIMATE
III. MORAL DAMAGES .......................... 555
CAUSE........................................................................ 521 A. WHEN AWARDED ............................................ 555
C.6. CONTRIBUTORY NEGLIGENCE OF THE A.3 REQUISITES FOR AWARDING MORAL DAMAGES
PLAINTIFF .................................................................. 521 ................................................................................... 556
C.7. FORTUITOUS EVENT ........................................ 522 A.4 GENERAL PRINCIPLES OF RECOVERY ............ 556
C.8. PLAINTIFF’S ASSUMPTION OF RISK / VOLENTI B. WHEN RECOVERABLE .................................... 557
NON FIT INJURIA ..................................................... 522 B.1 IN CRIMINAL OFFENSE RESULTING IN PHYSICAL
C.9. PRESCRIPTION ................................................. 523 INJURIES ................................................................... 557
C.10. WAIVER ............................................................ 523 B.2 IN QUASI-DELICTS CAUSING PHYSICAL INJURIES
C.11. EMERGENCY RULE OR SUDDEN PERIL ................................................................................... 558
DOCTRINE ................................................................ 523 B.3 IN SEDUCTION, ABDUCTION, RAPE AND OTHER
LASCIVIOUS ACTS .................................................... 558
III. INTENTIONAL TORTS ..................... 524 B.4 IN ILLEGAL OR ARBITRARY DETENTION OR
A. HUMAN RELATIONS TORTS ........................... 524 ARREST ..................................................................... 558
A.1. ABUSE OF RIGHT .............................................. 524 B.5 IN CASE OF MALICIOUS PROSECUTION .......... 558
A.2. ACTS CONTRARY TO LAW ............................... 525 B.6 IN ACTS REFERRED TO IN ARTS. 21, 26, 27, 28,
A.3. ACTS CONTRARY TO MORALS ........................ 525 29, 32, 34 &35, NCC.................................................. 558
A.4. UNJUST ENRICHMENT..................................... 526 B.7 VIOLATION OF HUMAN DIGNITY ...................... 559
A.5. VIOLATION OF HUMAN DIGNITY..................... 527 B.8 REFUSAL OR NEGLECT OF DUTY ..................... 559
A.6 DERELICTION OF DUTY .................................... 530 B.9 VIOLATION OF CIVIL AND POLITICAL RIGHTS.560
A.7. UNFAIR COMPETITION...................................... 531 B.10 IN WILLFUL INJURY TO PROPERTY .................561
B. INDEPENDENT CIVIL ACTIONS ....................... 531 B.11 IN BREACH OF CONTRACT IN BAD FAITH........561
B.1. VIOLATION OF CIVIL AND POLITICAL RIGHTS . 531 C. WHO MAY RECOVER MORAL DAMAGES ....... 561
B.2. DEFAMATION, FRAUD, PHYSICAL INJURIES.. 532 C.1 RELATIVES OF INJURED PERSONS....................561
B.3. NEGLECT OF DUTY ........................................... 534 C.2 JURIDICAL PERSONS .........................................561
B.4. CATCH-ALL INDEPENDENT CIVIL ACTION ..... 534 D. FACTORS CONSIDERED IN DETERMINING
AMOUNT .............................................................. 562
IV. LIABILITY ATTACHED TO SPECIFIC
PERSONS..............................................535 IV. NOMINAL DAMAGES ...................... 562
A. STRICT LIABILITY ............................................. 535 A. REQUISITES AND CHARACTERISTICS ........... 562
A.1. POSSESSOR OR USER OF ANIMALS ............... 535 B. WHEN AWARDED ............................................ 562
A.2. PROVINCES, CITIES, AND MUNICIPALITIES ... 535 C. NATURE AND DETERMINATION OF AMOUNT
A.3. PROPRIETOR OF BUILDING OR STRUCTURE 535 .............................................................................. 563
A.4. ENGINEER OR ARCHITECT OF COLLAPSED
BUILDING ................................................................. 536 V. TEMPERATE DAMAGES ................... 564
A.5. OWNERS OF ENTERPRISES OR OTHER A. REQUISITES ..................................................... 564
EMPLOYERS ............................................................. 536 B. FACTORS IN DETERMINING AMOUNT .......... 564
xvi
B.1 WHERE THERE ARE RECEIPTS PROVIDED A.2. TYPES OF JUDICIAL JURISDICTION ................. 575
AMOUNTING TO LESS THAN P25,000 ................... 564 A.3. WAYS OF DEALING WITH A CONFLICTS
B.2 WHERE NO RECEIPTS WERE PROVIDED......... 565 PROBLEM ................................................................. 576
B. CHOICE OF LAW .............................................. 576
VI. LIQUIDATED DAMAGES .................. 565 B.1. APPROACHES TO CHOICE OF LAW .................. 576
A. REQUISITES AND CHARACTERISTICS ........... 565 C. THE PROBLEM OF CHARACTERIZATION .......577
B. RULES GOVERNING BREACH OF CONTRACT C.1 CHARACTERIZATION AND THE SINGLE-ASPECT
.............................................................................. 565 METHOD ................................................................... 577
C.2 DEPECAGE ......................................................... 578
VII. EXEMPLARY OR CORRECTIVE D. THE PROBLEM OF RENVOI ............................ 579
DAMAGES ............................................ 566 D.1. DEFINITION........................................................ 579
A. WHEN RECOVERABLE .................................... 566 D.2. VARIOUS WAYS OF DEALING WITH THE
A.1 IN CRIMINAL OFFENSES; NCC ART. 2230 ........ 566 PROBLEM OF RENVOI ............................................. 579
A.2 IN CONTRACTS AND QUASI-CONTRACTS; NCC E. NOTICE AND PROOF OF FOREIGN LAW ........ 579
ART. 2232 ................................................................. 567 E.1. EXTENT OF JUDICIAL NOTICE ........................... 579
REQUISITES.............................................................. 567 E.2. PROOF OF FOREIGN LAW ................................ 579
B. REQUISITES TO RECOVER EXEMPLARY E.3. EXCEPTIONS TO THE APPLICATION OF FOREIGN
DAMAGES AND LIQUIDATED DAMAGES AGREED LAW ...........................................................................580
UPON .................................................................... 567 III. PERSONAL LAW.............................. 580
C. DAMAGES IN CASE OF DEATH ....................... 568 A. NATIONALITY .................................................. 580
C.1 IN DEATH CAUSED BY BREACH OF CONDUCT BY A.1. IMPORTANCE OF A PERSONAL LAW...............580
A COMMON CRIME .................................................. 568 A.2. DETERMINATION OF NATIONALITY ................580
A.3. PROBLEMS IN APPLYING NATIONALITY
VIII. GRADUATION OF DAMAGES ........ 569 PRINCIPLE ................................................................ 582
A. RULES .............................................................. 569 B. DOMICILE ......................................................... 583
A.1 IN CRIMES ........................................................... 569
B.1. DEFINITION ........................................................ 583
A.2 IN QUASI-DELICTS ............................................ 569
B.2. GENERAL RULES ON DOMICILE ...................... 583
B. CONTRIBUTORY NEGLIGENCE ...................... 569 B.3. KINDS OF DOMICILE ......................................... 583
B.1 PLAINTIFF’S NEGLIGENCE................................. 569
C. PRINCIPLES ON PERSONAL STATUS AND
B.2 IN CONTRACTS, QUASI-CONTRACTS AND
QUASI-DELICTS ....................................................... 570 CAPACITY ............................................................. 584
C.1. DEFINITION ........................................................ 584
C. GROUNDS FOR MITIGATION OF DAMAGES . 570
C.2. LEGISLATIVE JURISDICTION DISTINGUISHED
C.1 FOR CONTRACTS: .............................................. 570
FROM JUDICIAL JURISDICTION .............................. 584
C.2 FOR QUASI-CONTRACTS: ................................. 570
C.3. BEGINNING AND END OF PERSONALITY ....... 584
C.3 FOR QUASI-DELICTS: ........................................ 570
C.4. ABSENCE ........................................................... 584
C.4 RULE WHEN CONTRACTING PARTIES ARE IN
C.5. NAME ................................................................. 585
PARI DELICTO .......................................................... 570
C.6. AGE OF MAJORITY ............................................ 585
C.5 LIQUIDATED DAMAGES ..................................... 571
C.7. CAPACITY........................................................... 585
C.6 COMPROMISE ..................................................... 571
IX. MISCELLANEOUS RULES ................. 571 IV. CHOICE OF LAW PROBLEMS ........... 585
A. CHOICE-OF-LAW IN FAMILY RELATIONS...... 585
A. DAMAGES THAT CANNOT CO-EXIST .............. 571
A.1. MARRIAGE ......................................................... 585
A.1 NOMINAL WITH OTHER DAMAGES ................... 571
A.2. DIVORCE AND SEPARATION ........................... 587
A.2 ACTUAL AND LIQUIDATED ................................ 571
A.3. ANNULMENT AND DECLARATION OF NULLITY
B. DAMAGES THAT MUST CO-EXIST ................... 571 ................................................................................... 587
B.1 EXEMPLARY WITH MORAL, TEMPERATE, A.4. PARENTAL RELATIONS.................................... 587
LIQUIDATED OR COMPENSATORY ......................... 571 A.5. ADOPTION ........................................................588
C. DAMAGES THAT MUST STAND ALONE ......... 572 B. CHOICE OF LAW IN PROPERTY ...................... 588
C.1 NOMINAL DAMAGES ......................................... 572 B.1. THE CONTROLLING LAW ..................................588
B.2. CAPACITY TO TRANSFER OR ACQUIRE
PROPERTY ................................................................ 589
B.3. EXTRINSIC AND INTRINSIC VALIDITY OF
PRIVATE INTERNATIONAL LAW CONVEYANCES ........................................................ 589
B.4. EXCEPTION TO LEX SITUS RULE ..................... 589
I. INTRODUCTION .................................574 B.5. SITUS OF CERTAIN PROPERTIES .................... 589
A. BASIS ................................................................ 574 C. CHOICE OF LAW IN CONTRACTS ................... 589
B. DEFINITION ...................................................... 574 C.1. EXTRINSIC VALIDITY OF CONTRACTS ............. 589
C. SCOPE .............................................................. 574 C.2. INTRINSIC VALIDITY OF CONTRACTS ............. 589
D. SOURCES ......................................................... 574 C.3. CAPACITY TO ENTER INTO CONTRACTS ........590
C.4. CHOICE OF LAW ISSUES IN CONFLICTS
II. JURISDICTION AND CHOICE OF LAW 575 CONTRACTS CASES .................................................590
A. JURISDICTION ................................................. 575 C.5. ADHESION CONTRACTS ..................................590
A.1. BASIS OF EXERCISE OF JUDICIAL JURISDICTION C.6. LIMITATIONS TO CHOICE OF LAW...................590
.................................................................................. 575
xvii
D. CHOICE OF LAW IN WILLS, SUCCESSION AND F.1. CORPORATIONS ................................................ 592
ADMINISTRATION OF ESTATES .........................590 F.2. PARTNERSHIPS ................................................ 594
D.1. EXTRINSIC VALIDITY OF WILLS........................ 590
D.2. INTRINSIC VALIDITY OF WILLS ....................... 590 V. FOREIGN JUDGMENTS ..................... 595
D.3. INTERPRETATION OF WILLS ............................ 591 A. RECOGNITION AND ENFORCEMENT OF
D.4. REVOCATION ..................................................... 591 FOREIGN JUDGMENTS ........................................ 595
D.5. PROBATE ........................................................... 591 A.1. DISTINCTION BETWEEN RECOGNITION AND
D.6. ADMINISTRATION OF ESTATES ....................... 591 ENFORCEMENT ........................................................ 595
E. CHOICE OF LAW IN TORTS AND CRIMES .......591 A.2. BASES OF RECOGNITION AND ENFORCEMENT
E.1. LEX LOCI DELICTI COMMISSI FOR TORTS ........ 591 OF FOREIGN JUDGMENTS....................................... 595
E.2. MODERN THEORIES ON FOREIGN TORT A.3. POLICIES UNDERLYING RECOGNITION AND
LIABILITY ................................................................... 591 ENFORCEMENT ........................................................ 596
E.3. FOREIGN TORT CLAIMS .................................... 591 A.4. REQUISITES FOR RECOGNITION OR
E.4. DISTINGUISHING BETWEEN TORTS AND CRIMES ENFORCEMENT ........................................................ 596
................................................................................... 591 A.5. PROCEDURE FOR ENFORCEMENT ................. 596
E.5. LEX LOCI DELICTI FOR CRIMES ....................... 592
F. CHOICE OF LAW AFFECTING CORPORATIONS VI. SUMMARY OF CONFLICTS OF LAW
AND OTHER JURIDICAL ENTITIES ...................... 592 RULES.................................................. 597
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Art. 17. The forms and solemnities of (2) Lex loci celebracionis - Marriage governed
contracts, wills, and other public instruments by laws in the country
shall be governed by the laws of the country
(3) Lex contractus - Forms and solemnities of
in which they are executed.
contracts governed by laws of the land where
When the acts referred to are executed before they are executed
the diplomatic or consular officials of the
When performed in front of a Filipino
Republic of the Philippines in a foreign
diplomatic or consular office, Filipino
country, the solemnities established by
solemnities will be used.
Philippine laws shall be observed in their
execution.
Prohibitive laws concerning persons, their
acts or property, and those which have, for
their object, public order, public policy and
good customs shall not be rendered
ineffective by laws or judgments
promulgated, or by determinations or
conventions agreed upon in a foreign country.
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Passive Active
Birth – complete removal of the fetus from
the mother’s womb; before birth, a fetus is
Aptitude for the Holding Aptitude for the merely part of the mother’s internal organs. It
and Enjoyment of rights Exercise of rights is enough that the child lives even for an
instant.
Inherent in natural Must be acquired
persons Proof that the fetus was alive upon
separation is complete respiration as a test or
sign of independent life
Lost upon death Lost through
death and other It is presumed that the child was alive and it
causes is the contradicting party who has the burden
of proof.
Can exist without Must exist with
Intra-Uterine Life When Considered Born
capacity to act juridical capacity
7 months or more If alive upon delivery
Cannot be limited or May be restricted
restricted or limited
Less than 7 If alive after completion
months of 24 hours from
delivery
Art. 37. Juridical capacity, which is the fitness
to be the subject of legal relations, is inherent
in every natural person and is lost only Personality of Conceived Child
through death. Capacity to act, which is the (1) Limited - only for purposes favorable to it.
power to do acts with legal effect, is acquired
and may be lost. (2) Conditional - it depends upon the child
being born alive later
N.B.: Juridical capacity can exist even without
capacity to act; the existence of the latter A conceived child can acquire rights while
implies that of the former. Full civil capacity still in the mother’s womb. It can inherit by
is the existence of both capacity to act and will or by intestacy.
juridical capacity. Period of Conception - the first 120 days of the
Capacity and incapacity depends on the law, 300 days preceding the birth of the child.
therefore it cannot be modified by [Tolentino]
agreements. It is a matter of public interest. An aborted fetus never acquired legal
(Tolentino) rights/civil personality because it was not
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alive at the time of delivery from the mother’s Art. 43 Rule 131, Sec. 3 (jj)
womb. No damages can be claimed in behalf
of the unborn child since an action for
Only use the presumptions when there are
pecuniary damages on account of personal
no facts to get inferences from
injury or death pertains primarily to the one
injured. [Geluz vs CA (1961)]
Only use for Cannot be used for
“This is not to say that the parents [of an succession succession purposes
aborted fetus] are not entitled to collect any purposes
damages at all. But such damages must be
those inflicted directly upon them as In any Only during death in
distinguished from the injury or violation of circumstance calamities, wreck,
the rights of the [aborted fetus]” e.g. moral battle or conflagration
damages for their loss and the
disappointment of their parental
expectations (Art. 2217, Civil Code). [Geluz v.
CA (1961)] Presumption of Survivorship in the Rules of
Court (Rule 131, sec. 3, (jj.)
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separate and distinct from that of each capacity to act, and do not exempt the
shareholder, partner or member. incapacitated person from certain
obligations, as when the latter arise from his
Art. 45.Juridical persons mentioned in Nos. 1
acts or from property relations, such as
and 2 of the preceding article are governed by
easements.
the laws creating or recognizing them.
Art. 39. The following circumstances, among
Private corporations are regulated by laws of
others, modify or limit capacity to act: age,
general application on the subject.
insanity, imbecility, the state of being a deaf-
Partnerships and associations for private mute, penalty, prodigality, family relations,
interest or purpose are governed by the alienage, absence, insolvency and
provisions of this Code concerning trusteeship. The consequences of these
partnerships. circumstances are governed in this Code,
other codes, the Rules of Court, and in special
Art. 46. Juridical persons may acquire and
laws.
possess property of all kinds, as well as incur
obligations and bring civil or criminal actions, Capacity to act is not limited on account of
in conformity with the laws and regulations of religious belief or political opinion.
their organization.
A married woman, twenty-one years of age or
Art. 47. Upon the dissolution of corporations, over, is qualified for all acts of civil life, except
institutions and other entities for public in cases specified by law.
interest or purpose mentioned in No. 2 of
article 44, their property and other assets General rule: Incapacitated persons are not
shall be disposed of in pursuance of law or exempt from certain obligations arising from
the charter creating them. If nothing has his acts or property relations.
been specified on this point, the property and (i) Minority
other assets shall be applied to similar
RA 6809 (1989): An act lowering the age of
purposes for the benefit of the region,
majority from twenty-one to eighteen years.
province, city or municipality which during
the existence of the institution derived the
principal benefits from the same.
Effects on Contracts
Concept of Juridical Persons is that an
(1) They cannot give consent to a contract
abstract being is formed for the realization of
(Art. 1327 (1))
a collective purpose that the law granted with
capacity for rights and obligations. It requires (2) A contract where one of the parties is a
recognition of the State and is independent of minor is voidable(Art. 1390(1))
the members (Tolentino). (3) A contract is unenforceable when both of
the parties are minors (incapable of
giving consent) (Art. 1403(3))
E. RESTRICTIONS ON CIVIL CAPACITY
(4) Minority cannot be asserted by the other
E. 1. PRESUMPTION OF CAPACITY party in an action for annulment (Art.
Art. 37. Juridical capacity, which is the fitness 1397)
to be the subject of legal relations, is inherent (5) Not obliged to make restitution except
in every natural person and is lost only insofar as he has been benefited (Art.
through death. Capacity to act, which is the 1399)
power to do acts with legal effect, is acquired
and may be lost. (6) Minor has no right to demand the
thing/price voluntarily returned by him
(Art. 1426)
E. 2. RESTRICTIONS ON CAPACITY TO ACT (7) Minor has no right to recover voluntarily
Art. 38. Minority, insanity or imbecility, the paid sum or delivered thing, if consumed
state of being a deaf-mute, prodigality and in good faith (Art. 1427)
civil interdiction are mere restrictions on
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(8) Must pay reasonable amount for (2) Contracts entered into during lucid
necessaries delivered to him (Art. 1489) intervals are valid (Art. 1328) Burden of
proof lies with party asserting the
contract was entered into by the insane
Estoppel works against minors who during a lucid interval.
misrepresent their ages in a contract and are
(3) Restitution of benefits (Art. 1399)
compelled to comply with its terms. [Mercado
vs Espiritu(1917)] (4) Voidable if one of the parties is insane
(Art. 1390)
When a minor made no active
misrepresentation as to his minority and such (5) Unenforceable if both of the parties are
minority is known to the other party, the insane (Art. 1403 (3))
contract may be annulled by the minor upon
attaining the age of majority. [Bambalan vs
Maramba (1928)] Effect on Crimes
Minors are obliged to make restitution insofar (1) General rule: EXEMPTED from criminal
as they have been benefited (Art. 1399). liability
[Braganza vs Villa Abrille (1959]
(2) Exception: Acted during lucid interval (Art.
1328).
Effects on Marriage
(1) May not yet contract marriage (Art. 5, FC). Effect on Marriage
(2) Marriages, where one of the parties is May be annulled if either party was of
below 18, even with the consent of unsound mind unless the such party after
parents/guardians, are void (Art. 35, FC). coming to reason, freely cohabited with the
other (Art. 45(2), FC)
Effect on Crimes (R.A. 9344)
Action for annulment of marriage must be
(1) General rule: EXEMPTED from criminal
filed by the sane spouse who had no
liability
knowledge of the other’s insanity, or by any
(2) Exception: Acted with discernment, and relative/guardian of the insane before the
the minor is between 15 and 18 years of death of either party; or by the insane spouse
age. during a lucid interval or after regaining
sanity (Art. 47(2), FC)
In the absence of proof that the defendant
(ii) Insanity
had lost his reason or became demented a
Insanity includes many forms of mental few moments prior to or during the
disease, either inherited or acquired. A perpetration of the crime, it is presumed that
person may not be insane but only mentally he was in a normal condition of mind. It is
deficient (idiocy, imbecility, feeble- improper to conclude that he acted
mindedness). unconsciously, in order to relieve him from
It is presumed that a person who enters into a responsibility on the ground of exceptional
mental condition, unless his insanity and
contract is of sound mind. The burden of
absence of will are proven. [USA vs Vaguilar
proof of insanity rests upon him who alleges
(1914)]
insanity. [Engle v. Doe (1925)] (see Exception
below) Capacity to act must be supposed to attach to
a person who has not previously been
declared incapable, and such capacity is
Effect on Contracts presumed to continue so long as the contrary
(1) Incapacity to give consent to a contract be not proved, that is, that at the moment of
(Art. 1327(2)) his acting he was incapable, crazy, insane, or
out his mind [Standard Oil vs Arenas (1911)]
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effort towards a compromise have been 1. A person on board a vessel lost during a
made but have failed (Art. 151, FC) sea voyage, or an aeroplane which is missing,
who has not been heard of for four years since
(a) EXCEPT: questions on civil status of
the loss of the vessel or aeroplane;
persons, validity of a marriage or a
legal separation, any ground for legal 2. A person in the armed forces who has
separation, future support, taken part in war, and has been missing for
jurisdiction of courts, future legitime four years;
(Art. 2035).
3. A person who has been in danger of death
(vii) Alienage under other circumstances and his existence
has not been known for four years.
Dual citizenship is different from dual
allegiance. The former arises when, as a Art. 41.A marriage contracted by any person
result of the concurrent application of the during subsistence of a previous marriage
different laws of two or more states, a person shall be null and void, unless before the
is simultaneously considered a national by celebration of the subsequent marriage, the
the said states. Dual allegiance, on the other prior spouse had been absent for four
hand, refers to the situation in which a person consecutive years and the spouse present has
simultaneously owes, by some positive act, a well-founded belief that the absent spouse
loyalty to two or more states. While dual was already dead. In case of disappearance
citizenship is involuntary, dual allegiance is where there is danger of death under the
the result of an individual’s volition. For circumstances set forth in the provisions of
candidates with dual citizenship, it should Article 391 of the Civil Code, an absence of
suffice if, upon the filing of their certificates of only two years shall be sufficient.
candidacy, they elect Philippine citizenship to
For the purpose of contracting the
terminate their status as persons with dual
subsequent marriage under the preceding
citizenship considering that their condition is
paragraph the spouse present must institute
the unavoidable consequence of conflicting
a summary proceeding as provided in this
laws of different states. [Cordora vs COMELEC
Code for the declaration of presumptive
(2009)]
death of the absentee, without prejudice to
Aliens cannot own or operate public utilities. the effect of reappearance of the absent
Corporations should be at least 40% Filipino spouse.
and their managing or executive officials
Art. 42. The subsequent marriage referred to
should be Filipinos. Furthermore, alien
in the preceding Article shall be
Corporations cannot operate for more than
automatically terminated by the recording of
50 years. (Art. 12 Sec. 11, 1987 Constitution)
the affidavit of reappearance of the absent
spouse, unless there is a judgment annulling
the previous marriage or declaring it void ab
(viii) Absence
initio.
Art. 390. After an absence of seven years, it
A sworn statement of the fact and
being unknown whether or not the absentee
circumstances of reappearance shall be
still lives, he shall be presumed dead for all
recorded in the civil registry of the residence
purposes, except for those of succession.
of the parties to the subsequent marriage at
The absentee shall not be presumed dead for the instance of any interested person, with
the purpose of opening his succession till due notice to the spouses of the subsequent
after an absence of ten years. If he marriage and without prejudice to the fact of
disappeared after the age of seventy-five reappearance being judicially determined in
years, an absence of five years shall be case such fact is disputed.
sufficient in order that his succession may be
opened.
(ix) Insolvency and Trusteeship
Art. 391. The following shall be presumed
dead for all purposes, including the division of Art. 1381. The following contracts are
the estate among the heirs:
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The place of their habitual residence (Art. 50) is a clear proof of abandonment,
domicile of origin subsists
[Romualdez-Marcos vs. Comelec
For Juridical Persons: (1995)]
The place where their legal representation is Foundlings cannot be considered stateless
established, or where they exercise their and citizenship is not required for domicile
primary functions, unless there is a law or [Poe-llamanzares vs COMELEC (2016)]
other provision that fixes the domicile (Art.
A house is not necessary to establish domicile
51)
[Jalosjos vs COMELEC (2012)]
Kinds of Domicile
(1) Domicile of Origin
(a) Domicile of parents of a person at the
time he was born.
(1) Domicile of Choice
(a) Domicile chosen by a person,
changing his domicile of origin.
(b) Domicile where he intends to remain
(animus revertendi).
(c) A 3rd requisite is necessary –
intention not to return to one’s
domicile as his permanent place.
(1) Domicile by Operation of Law (i.e., Article
69, domicile of minor)
(a) A married woman does not lose her
domicile to her husband. Unless there
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The essential feature is seduction, that in law instead makes the party responsible for such
is more than mere sexual intercourse, or a irregularity civilly, criminally or
breach of a promise of marriage; it connotes administratively liable. (Art. 4, FC)
essentially the idea of deceit, enticement,
(i) Essential Requisites
superior power or abuse of confidence on the
part of the seducer to which the woman has (1) Gender
yielded. [Tanjanco v. CA (1966) quoting US v
N.B.: The best source for citing the
Buenventura]
requirement of male/female is still statutory,
Maintaining intimate sexual relations with as provided explicitly in the Family Code.
another for a whole year is incompatible with
Changing of sex in one’s birth certificate on
the idea of seduction. [Tanjanco v. CA (1966)]
the basis of sex reassignment shall be
C. REQUISITES denied; otherwise, it would result in
confusion and would allow marriage between
C.1. KINDS OF REQUISITES AND EFFECTS persons of the same sex which is in defiance
OF NON-COMPLIANCE of the law, as marriage is a union between a
man and a woman.[Silverio v. Republic
Essential Requisites Formal Requisites (Art.
(2007)]
(Art. 2) 3)
But when the change in sex happens
Legal Capacity of Authority of naturally, as when the person has Congenital
the contracting solemnizing officer Adrenal Hyperplasia (CAH) or is “biologically
parties, who must or naturally intersex,” the determining factor
be a male and a in their gender classification would be what
female they, having reached the age of majority, with
good reason thinks is their sex. Change in
Consent (of the A valid marriage name and sex as registered is here allowed.
parties) freely given license [Republic v. Cagandahan (2008)]
in the presence of a (2) Age
(subject to exceptions)
solemnizing officer.
Legal Capacity (Art. 5)
A marriage entered into by a person whose (c) Presence of at least two witnesses of
real intent is to avoid prosecution for rape is legal age. (Art. 3)
void for total lack of consent. The accused did
(d) The declaration shall be contained in the
not intend to be married. He merely used
Marriage Certificate. (Art. 6)
such marriage to escape criminal liability.
[People v. Santiago, (1927)] (e) Marriage certificate shall be signed by the
contracting parties and their witnesses
Defect:
and attested by the solemnizing officer.
Art. 45, FC. A marriage may be annulled for (Art. 6)
any of the following causes existing at the N.B.: In a marriage in articulo mortis, when
time of the marriage: xxx (3) that the consent one or both parties are unable to sign the
of either party was obtained by fraud, unless marriage certificate, it shall be sufficient for
such party afterwards, with full knowledge of one of the witnesses to write the name of said
the facts constituting the fraud, freely party, which shall be attested by the
cohabited with the other as husband and solemnizing officer. (Art. 6, par. 2)
wife.
Places where marriage shall be publicly
solemnized:
Fraud here refers to matters which relate to
the marital relation: (a) Chambers of the judge or in open court
(a) Non-disclosure of previous conviction by (b) Church, chapel, or temple
final judgment of a crime involving moral (c) Office of the consul-general, consul, or
turpitude; vice-consul (Art. 8)
(b) Concealment of pregnancy by another Exceptions:
man;
(a) Marriages performed in articulo mortis or
(c) Concealment of a sexually transmitted in remote places. (Art. 29)
disease;
(b) Where both parties request in writing that
(d) Concealment of drug addiction, marriage be solemnized at a place
alcoholism, lesbianism, or homosexuality designated by them.
(Art. 46, FC)
N.B.: Non-compliance with this requirement
(ii) Formal Requisites does not invalidate the marriage (premise:
(1) Ceremony more witnesses = more people can notify
officer of impediments to marriage).
Marriage Ceremony
(2) Authority of the Solemnizing Officer
No prescribed form or religious rite for the
solemnization of marriage is required. (Art. 6) Who may solemnize marriage:
The couple's written agreement where they Normal Circumstances
declare themselves as husband and wife,
signed by them before a judge and two (1) Incumbent member of the Judiciary,
capable witnesses, even though it was within his jurisdiction. (Art. 7)
independently made by them, still counts as
a valid ceremony. [Martinez v. Tan, (1909)]
(2) Priest, Rabbi, Imam or Minister of any
Minimum requirements prescribed by law: Church or Religious Sect. Must be:
(a) Appearance of contracting parties (a) Duly authorized by his church or
personally before the solemnizing officer religious sect
(Art. 3)
(b) Registered with the civil registrar
(b) Personal declaration that they take each general
other as husband and wife. (Art. 3)
(c) Acting within the limits of the written
authority granted to him by his
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(g) That parties have entered into marriage Lex Nationalii – Laws Lex loci
settlements, if any (Art. 22) relating to family celebrationis-if valid
N.B.: Not an essential or formal requisite rights and duties, or to where celebrated,
without which the marriage will be the status, condition, then valid
void[Madridejo v. de Leon (1930)] and legal capacity of everywhere; forms
persons are binding of contracting
Best evidence that a marriage does exist. upon Phil citizens marriage are to be
[Tenebro v. CA (2004)] even though living regulated by the law
D. LAW GOVERNING VALIDITY OF abroad (Art. 15) where it is
MARRIAGES ABROAD celebrated. (Art. 26)
D.1 GENERAL RULE IN CONTRACTS Foreign marriages Foreign marriages
As to form: Governed by the laws of the void under Phil law may be void under
country in which they were executed (NCC Art. due to lack of an Phil law due to
17) essential requisite, absence of a formal
even if valid under requisite under
As to substantive requirements: Laws relating foreign laws, will not foreign laws.
to family rights and duties, or to the status, be recognized.
condition and legal capacity of persons,
prohibitive laws regarding the person, his or
her property, those which have for their object Proof of Foreign Marriage in order that it may
public order, public policy and good customs be upheld:
bind all Filipinos regardless of location. (NCC (1) Provisions of the foreign law
Art. 15, 17)
(2) Celebration of the marriage in
accordance with said provisions
D.2 MARRIAGES CELEBRATED ABROAD D. 3 FOREIGN DIVORCES
General Rule: Marriages solemnized abroad (1) Those obtained by Filipino citizens are
in accordance with the laws in force in that void under Philippine law.
country shall be valid in the Philippines. (Art
26, par.1) (2) If the foreign spouse obtains a valid
divorce decree abroad capacitating
Exceptions: him/her to remarry, the Filipino spouse
(1) Marriage between persons below 18 years shall have capacity to remarry under
old (Art. 35(1)) Philippine law. (Art. 26, par.2)
(2) Bigamous or polygamous marriage (Art. Marriages dissolved by foreign judgment
35(4)) Aliens may obtain divorces abroad, which
(3) Mistake in identity (Art. 35 (5)) may be recognized in the Philippines,
provided they are valid according to their
(4) Marriages void under Article 53 (Art. 35 national law. The marriage tie when thus
(6)) severed as to one party, ceases to bind
(5) Psychological incapacity (Art. 36) either. [Van Dorn vs Romillo (1985)]
(6) Incestuous marriages (Art. 37) A marriage between two Filipinos cannot be
dissolved even by a divorce obtained abroad,
(7) Marriage void for reasons of public policy because of Articles 15 and 17 of the Civil Code.
(Art. 38) [Garcia vs Recio (2001)]
Essential requisites Formal requisites In mixed marriages involving a Filipino and a
foreigner, Article 26 of the Family Code
Inherent in the parties, Requirements allows the former to contract a subsequent
carried everywhere independent of the marriage in case the divorce is (1) validly
parties obtained abroad by the alien spouse and (2)
is of the type that legally dissolves the
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marriage and capacitates him or her to owned in common, without the consent of the
remarry. [Garcia vs Recio (2001)] other, until after the termination of their
A divorce obtained abroad by a couple, who cohabitation.
are both aliens, may be recognized in the When only one of the parties to a void
Philippines, provided it is consistent with marriage is in good faith, the share of the
their respective national laws. [Garcia vs party in bad faith in the co-ownership shall be
Recio (2001)] forfeited in favor of their common children. In
The citizenship of the spouses at the time of case of default of or waiver by any or all of the
the divorce determines their capacity to common children or their descendants, each
obtain a valid divorce. [Quita v. Dandan vacant share shall belong to the respective
(1998)] surviving descendants. In the absence of
descendants, such share shall belong to the
Courts will only determine (1) whether the innocent party. In all cases, the forfeiture
foreign judgment is inconsistent with an shall take place upon termination of the
overriding public policy in the Philippines; cohabitation.
and (2) whether any alleging party is able to
prove an extrinsic ground to repel the foreign Art. 148. In cases of cohabitation not falling
judgment, i.e. want of jurisdiction, want of under the preceding Article, only the
notice to the party, collusion, fraud, or clear properties acquired by both of the parties
through their actual joint contribution of
mistake of law or fact. If there is neither
inconsistency with public policy nor adequate money, property, or industry shall be owned
proof to repel the judgment, Philippine courts by them in common in proportion to their
should, by default, recognize the foreign respective contributions. In the absence of
proof to the contrary, their contributions and
judgment as part of the comity of nations.
[Fujiki vs Marinay (2013)] corresponding shares are presumed to be
equal. The same rule and presumption shall
apply to joint deposits of money and
evidences of credit.
E. COMMON-LAW MARRIAGES
If one of the parties is validly married to
Art. 147. When a man and a woman who are
another, his or her share in the co-ownership
capacitated to marry each other, live
shall accrue to the absolute community or
exclusively with each other as husband and
conjugal partnership existing in such valid
wife without the benefit of marriage or under
marriage. If the party who acted in bad faith
a void marriage, their wages and salaries
is not validly married to another, his or her
shall be owned by them in equal shares and
shall be forfeited in the manner provided in
the property acquired by both of them
the last paragraph of the preceding Article.
through their work or industry shall be
governed by the rules on co-ownership. The foregoing rules on forfeiture shall
likewise apply even if both parties are in bad
In the absence of proof to the contrary,
faith.
properties acquired while they lived together
shall be presumed to have been obtained by
Though there is no technical marital
their joint efforts, work or industry, and shall
partnership between person living maritally
be owned by them in equal shares. For
without being lawfully married, nevertheless
purposes of this Article, a party who did not
there is between them an informal civil
participate in the acquisition by the other
partnership which would entitle the parties to
party of any property shall be deemed to have
an equal interest in property acquired by their
contributed jointly in the acquisition thereof if
joint efforts [Lesaca vs Lesaca (1952)]
the former's efforts consisted in the care and
maintenance of the family and of the
household.
F. VOID AND VOIDABLE MARRIAGES
Neither party can encumber or dispose by
Presumption of Marriage
acts inter vivos of his or her share in the
property acquired during cohabitation and
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Art. 44. If both spouses of the subsequent (h) The trial court must order the prosecuting
marriage acted in bad faith, said marriage attorney or fiscal and the Solicitor
shall be void ab initio and all donations by General to appear as counsel for the
reason of marriage and testamentary state. No decision shall be handed down
dispositions made by one in favor of the other unless the Solicitor General issues a
are revoked by operation of law. certification. [Republic v Molina (1997)]
Refusal of husband to have sex was
(vi) Psychological Incapacity interpreted as psychological incapacity. “A
Contracted by any party who, at the time of man who can but won’t is psychologically
the celebration, was psychologically incapacitated” [Tsoi v. CA (1997)]
incapacitated to comply with the essential Psychological incapacity maybe established
marital obligations of marriage, even if such by the totality of the evidence presented.
incapacity becomes manifest only after its Personal medical examination could be
solemnization. (Art. 36) dispensed with. [Marcos v. Marcos (2000)]
There are 3 characteristics for determining There is no requirement that the respondent
psychological incapacity: gravity, antecedent, be medically examined first. [Republic v. San
and incurability. [Santos v. Bedia-Santos Jose (2007)]
(1995)]
“Pathological liar” considered as
Molina Doctrine in Psychological Incapacity psychological incapacity, Molina guidelines
(a) The burden of proof to show the nullity of met. [Antonio v. Reyes (2006)] Note: This case
the marriage belongs to the plaintiff. This also gave weight to the fact that the Church
is to be investigated by the OSG for annulled the marriage.
collusion. In the task of ascertaining the presence of
(b) The root cause of the psychological psychological incapacity as a ground for the
incapacity must be: (a) medically or nullity of marriage, the courts, which are
clinically identified, (b) alleged in the concededly not endowed with expertise in the
complaint, (c) sufficiently proven by the field of psychology, must of necessity rely on
experts, (d) clearly explained in the the opinions of experts in order to inform
decision. themselves on the matter, and thus enable
themselves to arrive at an intelligent and
(c) The incapacity must be proven to be
judicious judgment. [Kalaw v. Fernandez
existing at “the time of the celebration” of
(2015)]
the marriage.
The stringent requirements set forth by
(d) Such incapacity must also be shown to be
Molina should be relaxed and applied case-
medically or clinically permanent or
to-case. To require the allegation of the root
incurable.
cause of psychological incapacity by an
(e) Such illness must be grave enough to accredited psychologist may prove too
bring about the disability of the party to expensive for the parties. But where the
assume the essential obligations of parties had full opportunity to present expert
marriage. opinions, such will be weighed by the Court in
its decision. [Ting v. Ting (2009)]
(f) The essential marital obligations must be
those embraced by Articles 68 up to 71 of (vii) Incestuous Marriages
the Family Code as regards the husband
Article 37 (Incestuous):
and wife as well as Articles 220, 221, and
225 of the same Code in regard to (a) Between ascendants and descendants of
parents and their children. any degree, legitimate or illegitimate
(g) Interpretations given by the National (b) Between brothers and sisters, whether full
Appellate Matrimonial Tribunal of the or half blood, legitimate or illegitimate
Catholic Church in the Philippines, while (viii) Against Public Policy
not controlling/decisive, should be given
great respect by our courts. Article 38 (Against Public Policy):
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(a) Between collateral blood relatives, Previous marriage declared void ab initio or
legitimate or illegitimate, up to the fourth annulled
civil degree.
The word “solely” in Art. 40 referred to
(b) Between step-parents and step-children. validating subsequent marriages but NOT to
limiting the purposes for which a judicial
N.B.: Stepbrothers and stepsisters can
declaration of nullity can be invoked.
marry because marriages between them
[Domingo v. CA (1993)] N.B.: Separation of
are not among those enumerated in
property is also a valid purpose for filing for a
Article 38.
judicial declaration of nullity.
(c) Between parents-in-law and children-in-
Under the CC, no judicial decaration for
law.
nullity of previous marriage was required to
(d) Between adopting parent and adopted contract a subsequent marriage. [People v.
child. Mendoza (1954)]
(e) Between the surviving spouse of the It is the law effective at the time of the
adopting parent and the adopted child. second/subsequent marriage which controls
(i.e. Civil Code or FC). Thus:
(f) Between the surviving spouse of the
adopted child and the adopter. (1) Even if the judge’s first marriage
contracted in 1965 was voidfor not having a
(g) Between an adopted child and a
marriage license, the requirement for a
legitimate child of the adopter.
judicial declaration of nullity in Art. 40 still
(h) Between adopted children of the same applies because his subsequent marriage was
adopter. contracted in 1991. [Atienza v. Brillantes,
(i) Between parties where one, with the (1995)]
intention to marry the other, killed that (2) Where both marriages were contracted
other person's spouse, or his or her own prior to the effectivity of the FC, the
spouse. requirement of Art. 40 does not apply to the
Relationships outside of Art. 37 and 38 which second marriage where a right is already
are not impediments to marriage: brother-in- vested and on which the FC cannot have
law with sister-in-law, stepbrother with retroactive effect. [Apiag v. Cantero, (1997)]
stepsister, guardian with ward, adopted with Article 43 and 44 (Effects of Termination of
illegitimate child of the adopter, adopted son Bigamous Marriage under Art. 42)
of the husband with adopted daughter of the
Art. 43:
wife, parties who have been convicted of
adultery (1) Children of subsequent marriage –
conceived prior to its termination
(ix) Non-compliance with Recording
considered legitimate; custody and
Requirement after Declaration of Nullity
support decided by court in a proper
Article 53 (Non-Recording): proceeding.
Subsequent marriage of spouses, where the (2) Property Regime – dissolved and
requirements of recording under Art. 52 have liquidated (party in bad faith shall forfeit
not have been complied with, shall be null his/her share in favor of the common
and void. children or if there are none, children of
the guilty spouse by a previous marriage,
Art. 52. The judgment of annulment or of
and in case there are none, to the
absolute nullity of the marriage, the partition
innocent spouse).
and distribution of the properties of the
spouses and the delivery of the children's (3) Donation propter nuptias – remains valid,
presumptive legitimes shall be recorded in (but if the donee contracted marriage in
the appropriate civil registry and registries of bad faith, donations are revoked by
property; otherwise, the same shall not affect operation of law)
third persons.
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(4) Insurance benefits – innocent spouse may Art. 52. The judgment of annulment or of
revoke designation of guilty party as absolute nullity of the marriage the partition
beneficiary, even if such designation is and distribution of the properties of the
stipulated as irrevocable. spouses and the delivery of the children's
(5) Succession Rights – Party in bad faith presumptive legitimes shall be recorded in
shall be disqualified to inherit from the the appropriate civil registry and registries of
innocent spouse, whether testate or property; otherwise the same shall not affect
intestate. third persons.
Article 44 (Donations):
(1) The previous marriage should be
If both spouses of the subsequent marriage judicially declared void or annulled (final
acted in bad faith, all donations by reason of judgment) [Terre v. Terre (1992), Atienza v.
marriage and testamentary dispositions Brillantes (1995)]; Wiegel v. Sempio-Dy
made by one party in favor of the other are (1986)]
revoked by operation of law.
(2) Must comply with the requirements of
Who may file the petition for nullity of void Art. 52.
marriages?
Safeguard against collusion and No
General Rule: Only the husband or wife may confession of judgment
file the petition. (AM No. 02-11-10 SC, Sec. 2a)
Art. 48 (2):In the cases referred to in the
Specifically, A.M. No. 02-11-10-SC extends preceding paragraph, no judgment shall be
only to marriages covered by the Family Code, based upon a stipulation of facts or
which took effect on August 3, 1988, but, confession of judgment.
being a procedural rule that is prospective in
application, is confined only to proceedings Stipulation of Facts: An admission by both
commenced after March 15, 2003. [Ablaza v. parties after agreeing to the existence of any
Republic (2010)] of the grounds or facts that would constitute
a void/voidable marriage
Exceptions:
Confession of judgment: The admission by
(1) Nullity of marriage cases commenced one party admitting his/her fault to cause the
before effectivity of A.M. No. 02-11-10-SC invalidity of the marriage.
(2) Marriages celebrated during the Although the admission of guilt of the wife
effectivity of the Civil Code. [Carlos v. constitutes a confession of judgment, the
Sandoval (2008)] husband was also able to present other
However, the absence of a provision in the evidence to support the allegation. Hence,
Civil Code cannot be construed as a license there was no collusion. [Ocampo v.
for any person to institute a nullity of Florenciano (1960)]
marriage case. Such person must appear to Participation of the OSG
be the party who stands to be benefited or
injured by the judgment in the suit, or the The obvious intent of the AM 02-11-10-SC was
party entitled to the avails of the suit. [Carlos to require the OSG to appear as counsel for
vs Sandoval (2008)] the State in the capacity of a defensor vinculi
(i.e., defender of the marital bond) to oppose
Procedure in attacking a void marriage petitions for, and to appeal judgments in
General Rule: Void Marriages may be favor of declarations of nullity of marriage
attacked collaterally or directly. under Article 36 of the Family Code, thereby
ensuring that only the meritorious cases for
Exception: A person in a void marriage must the declaration of nullity of marriages based
first file for a declaration of nullity in order to on psychological incapacity-those sufficiently
subsequently marry evidenced by gravity, incurability and juridical
Requisites for valid remarriage: antecedence-would succeed. [Mendoza vs
Republic (2012)]
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other’s impotency at the time of ordered confined in jail until she does
marriage (Sempio-Diy) so
1. If he/she was aware, it is implied (f) Sexually-transmissible disease serious
that he/she renounced and incurable
copulation by consenting to the
(i) Should exist at the time of the
marriage. (Tolentino)
marriage
(iv) When both spouses are impotent,
(ii) Should be found serious
marriage cannot be annulled because
neither spouse is aggrieved. (Sempio- (iii) Should appear to be incurable
Diy) (iv) Reason: danger to the health of
1. An impotent plaintiff could not spouse & offspring/s
have expected copulation with (v) Same as incurable impotency
the other spouse. (Tolentino)
(vi) Not subject to ratification: cannot be
(v) Potency is presumed; party who ratified or convalidated by
alleges impotency has burden of cohabitation:
proof [Jimenez v Canizares (1960)]
1. Affliction of STD is unknown to
(vi) REFUSAL of wife to be examined the other spouse (Balane)
DOES NOT PRESUME impotency
[Jimenez v Canizares (1960)] N.B.: If 2. The other spouse must also be
she continues to refuse the physical free from a similar STD. (Balane)
exam, she can be held in contempt &
Who may file, Prescription, Ratification
Lack of Party 18 or above but Within 5 years after Free cohabitation after
parental below 21 attaining 21. attaining age of 21.
consent
Parent or guardian who Before party below 21
did not give consent reaches 21.
Insanity Sane spouse with no Any time before the death Free cohabitation of insane
knowledge of the other’s of either party party after insane party
insanity comes to reason
Fraud Injured party (defrauded Within 5 years after Free cohabitation after
party) discovery of fraud having full knowledge of
fraud
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Force, Injured party Within 5 years after Free cohabitation after the
intimidation, disappearance of force, force or intimidation or
undue undue influence, or undue influence has
influence intimidation ceased or disappeared
Marriages Not Subject to Ratification: cross-examined the plaintiff does not suffice to
comply with the mandatory requirement. [Corpuz
(1) One spouse is incurably impotent
v. Ochoterena, (2004)]
(2) One spouse has an incurable STD
Effects of Pending Decree of Annulment
Reason: Public policy and health. Although the
The Court shall provide for the support of spouses
action of to annul these marriages can prescribe
and support and custody of common children (Art.
(5 years).
49, FC). In determining which parent should have
Presence of Prosecutor custody of them, their moral and material welfare
shall be given paramount consideration. (Art. 49,
Art. 48. To prevent collusion between the parties,
FC) [Luna and Luna v. IAC (1985)]
fabrication or suppression of evidence, the
prosecuting attorney or fiscal shall appear on Effects of Decree of Annulment
behalf of the State.
(Same as Decree of Nullity)
In a legal separation or annulment case, the The effects provided for by paragraphs (2), (3), (4)
prosecuting attorney must first rule out collusion and (5) of Article 43 and by Article 44 shall also
as a condition sine qua non for further apply in the proper cases to marriages which are
proceedings. A certification by the prosecutor declared void ab initio or annulled by final
that he was present during the hearing and even judgment under Articles 40 and 45 (Art. 50(1)).
Void Voidable
Property Relation Only co-ownership; No ACP or CPG despite ACP or any other property regime
having entered into a marriage settlement in accordance with the marriage
settlement`
Status of Children Illegitimate under Art. 165 (with Art 36 and Art Children are legitimate if
53 as exceptions under Art. 54) conceived or born prior to the
decree
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Void Voidable
How Impugned (a) May be attacked directly or collaterally, but (a) Cannot be attacked
for the purpose of remarriage, a judicial collaterally
declaration of nullity is required
(b) Can be impugned even after death of the
(b) Cannot be impugned after the
parties
death of one of the parties
Who may A proper interested person (depending on the A party to the marriage
challenge validity dates of marriage and of filing of proceeding)
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One of the effects of irrevocable talaq, as well (a) Abandonment is not mere physical
as other kinds of divorce, refers to severance estrangement but also financial and
of matrimonial bond, entitling one to moral desertion. There must be an
remarry. [Zamoranos vs People (2011)] absolute cessation of marital
relations, duties, and rights with the
H. LEGAL SEPARATION intention of perpetual separation.
Note: The grounds for legal separation are [Dela Cruz. v. Dela Cruz (1968)]
exclusive. (Article 55) The death of one party in a legal separation
These must be filed within 5 years after case abates the action. This is because the
occurrence of cause (Article 57): death of either spouse automatically
dissolves the marriage. An action for legal
(1) Repeated physical violence or grossly
separation is also purely personal between
abusive conduct directed against the
the spouses. [Lapuz Sy v. Eufemio (1972)]
petitioner, a common child, or a child of
the petitioner; Acts of Violence according to RA 9262(as
grounds for legal separation under Art 55(1))
(2) Physical violence or moral pressure to
compel the petitioner to change religious (1) Causing physical harm to the woman or
or political affiliation; her child;
(3) Attempt of respondent to corrupt or (2) Threatening to cause the woman or her
induce the petitioner, a common child, or child physical harm;
a child of the petitioner, to engage in (3) Attempting to cause the woman or her
prostitution, or connivance in such child physical harm;
corruption or inducement;
(4) Placing the woman or her child in fear of
(4) Final judgment sentencing the imminent physical harm;
respondent to imprisonment of more
than six years, even if pardoned; (5) Attempting to compel or compelling the
woman or her child to engage in conduct
(5) Drug addiction or habitual alcoholism ; which the woman or her child has the
(6) Lesbianism or homosexuality of the right to desist from or desist from
respondent; conduct which the woman or her child
has the right to engage in, or attempting
(7) Contracting by the respondent of a
to restrict or restricting the woman's or
subsequent bigamous marriage, whether
her child's freedom of movement or
in the Philippines or abroad;
conduct by force or threat of force,
(8) Sexual infidelity or perversion; physical or other harm or threat of
physical or other harm, or intimidation
(a) Adultery is not a continuing crime; it
directed against the woman or child. This
is consummated at every moment of
shall include, but not limited to, the
carnal knowledge. Thus, every sexual
following acts committed with the
act is a ground for legal separation.
purpose or effect of controlling or
[People v. Zapata and Bondoc (1951)]
restricting the woman's or her child's
(b) A civil action for legal separation movement or conduct:
based on concubinage may proceed
(a) Threatening to deprive or actually
ahead of, or simultaneously with, a
depriving the woman or her child of
criminal action for concubinage;
custody to her/his family;
conviction is not a perquisite
[Gandionco v. Penaranda (1987)] (b) Depriving or threatening to deprive
the woman or her children of financial
(9) Attempt by the respondent against the
support legally due her or her family,
life of the petitioner; or
or deliberately providing the woman's
(10) Abandonment of petitioner by children insufficient financial support;
respondent without justifiable cause for
more than one year.
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(c) Depriving or threatening to deprive Grounds for denying legal separation (Article
the woman or her child of a legal 56):
right;
(1) Condonation by aggrieved party – after
(d) Preventing the woman in engaging in the commission of the offense; may be
any legitimate profession, express or implied.
occupation, business or activity or
That plaintiff-husband and his wife
controlling the victim's own money or
agreed to go to the house of his cousin
properties, or solely controlling the
and there slept together as husband and
conjugal or common money, or
wife for two nights – all these facts have
properties;
no other meaning than that reconciliation
(6) Inflicting or threatening to inflict physical between them was effected and there
harm on oneself for the purpose of was condonation of the wife by the
controlling her actions or decisions; husband. This reconciliation occurred
almost 10 months after he came to know
(7) Causing or attempting to cause the
of her infidelity. [Bugayong v. Ginez
woman or her child to engage in any
(1957)]
sexual activity which does not constitute
rape, by force or threat of force, physical (2) Consent by aggrieved party to the
harm, or through intimidation directed commission of the offense – before the
against the woman or her child or her/his commission of the offense; may be
immediate family; express (e.g. written agreement, [Matubis
v. Praxedes (1960)] or implied
(8) Engaging in purposeful, knowing, or
reckless conduct, personally or through (3) Connivance between parties in the
another, that alarms or causes commission of the offense
substantial emotional or psychological
(4) Mutual guilt or Recrimination between
distress to the woman or her child. This
spouses in the commission of any ground
shall include, but not be limited to, the
for legal separation
following acts:
(5) Collusion between parties to obtain
(a) Stalking or following the woman or
decree of legal separation
her child in public or private places;
(6) Prescription of action for legal separation
(b) Peering in the window or lingering
(Art. 57: 5 years from occurrence of the
outside the residence of the woman
cause of action)
or her child;
(7) Reconciliation of parties during pendency
(c) Entering or remaining in the dwelling
of action (Art. 66 par.1)
or on the property of the woman or
her child against her/his will; (8) Death of either party during pendency of
action (Lapuz-Sy vs. Eufemio)
(d) Destroying the property and personal
belongings or inflicting harm to When to file/try actions
animals or pets of the woman or her
An action for legal separation shall be filed
child; and
within five years from the time of the
(e) Engaging in any form of harassment occurrence of the cause. (Art. 57)
or violence;
Cooling-off and Reconcilation Effects
(9) Causing mental or emotional anguish,
Action cannot be tried before six months have
public ridicule or humiliation to the
elapsed from the filing of the petition (Art.
woman or her child, including, but not
58).
limited to, repeated verbal and emotional
abuse, and denial of financial support or Actions cannot be tried unless the court has
custody of minor children of access to the attempted to reconcile the spouses, and
woman's child/children. determined that despite such efforts,
reconciliation is highly improbable (Art. 59)
Defenses
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N.B.: This is without prejudice to judicial The Court shall provide for: (Art. 62, cf. Art.
determination of custody of children, 49. FC)
alimony, and support pendente lite.
▪ Support of spouses
Courts can still resolve other issues, pending
the waiting period or cooling off period. In ▪ Custody of children: The court shall give
resolving other issues, courts should try not custody of children to one of them, if
to touch, as much as possible, on the main there is no written agreement between
issue (i.e. adultery if that is the ground used). the spouses.
However, Court must still receive evidence if
just to settle incidental issues of support and ▪ Visitation rights of the other spouse
custody. [Araneta vs. Concepcion, (1956)] Effects of Decree of Legal Separation
N.B.: This provision of the Family Code (1) The spouses can live separately (Art. 63)
dictating a mandatory 6-month cooling-off but the marriage bonds are not severed.
period does not apply in cases where
violence, as used in RA 9262 (Anti-Violence (2) The ACP or CPG shall be dissolved and
Against Women and their Children), is liquidated, and the share of the guilty
alleged. The case should be heard as soon as spouse shall be forfeited in favor the
possible by the court. common children, previous children, or
innocent spouse, in that order (Art. 63. cf.
Confession of Judgment Art. 43, par. 2).
No decree of legal separation shall be based (3) Custody of the minor children shall be
upon a stipulation of facts or a confession of awarded to the innocent spouse (Art. 63,
judgment (Art. 60, par. 1. FC). cf. Art 213)
N.B.: Art. 60 par. 1 applies only if the (4) Guilty spouse shall be disqualified from
judgment was based solely on the stipulation Inheriting from innocent spouse by
of facts or solely on the confession of
intestate succession. The provisions in
judgment. Thus, if other grounds were used,
favor of the guilty party in the will of the
Art. 60 par. 1 is not applicable. (Balane) innocent spouse shall also be revoked by
The prohibition on confession of judgment operation of law. (Art. 63)
does not mean that the Court will not grant (5) Donations in favor of the guilty spouse
petition if one party admits to being guilty of may be revoked (Art. 64) but this action
the charges of adultery. The point of this prescribes after 5 years from the decree
provision is that the Court should still admit of legal separation.
evidence, not decide just based on an
admission of guilt. Because what is (6) Innocent spouse may also revoke
prohibited is handing down a decree of legal designation of guilty spouse as
separation based solely on a confession of beneficiary in an Insurance policy, even if
judgment. [Ocampo v Florenciano (1960)] such stipulations are irrevocable. (Art. 64.
FC, cf. PD 612, sec. 11)
Effects of Filing Petition
(7) Obligation for mutual support ceases, but
(1) The spouses are entitled to live the court may order the guilty spouse to
separately, but the marital bond is not support the innocent spouse. (Art. 198)
severed. (Art. 61 (1))
(8) The wife shall continue to use the
(2) Administration of community or conjugal surname of the husband even after the
property – If there is no written decree for legal separation. [Laperal v.
agreement between the parties, the court
Republic (1992)]
shall designate one of them or a third
person to administer the ACP or CPG.
(Art. 61, par. 2)
Effects of Pendency Reconciliation
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Should the spouses reconcile, they should file (6) The right to testamentary succession
a corresponding joint manifestation under depends on the will of the innocent
oath of such reconciliation, duly signed by spouse
them and filed with the court in the same
proceeding for legal separation. (Art. 65)
Effects of Reconciliation
(1) Proceedings for legal separation shall be
terminated at whatever stage. (Art. 66)
(2) If there is a final decree of legal
separation, it shall be set aside. (Art. 66)
(3) The separation of property and forfeiture
of share of guilty spouse shall subsist,
unless the spouses agree to revive their
former property regime or to institute
another property regime.(Art. 66 cf. Art.
67)
(4) Joint custody of children is restored.
(5) The right to intestate succession by guilty
spouse from innocent spouse is restored.
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Grounds (1) One is a minor (1) Lack of parental (1) Repeated Physical
consent Violence
(2) No authority to
marry (2) Insanity (2) Pressure to compel
to change
(3) No valid marriage (3) Fraud
religious/political
license
(4) Force, Intimidation affiliations
(4) Bigamous and
(5) Undue Influence (3) Corruption /
polygamous
Inducement to
marriages (6) Impotence
engage in
(5) Mistake of identity (7) Serious and prostitution
Incurable STD
(6) Void subsequent (4) Final judgment with
marriage sentence of more
than 6 yrs.
(7) Psychological
incapacity (5) Drug Addiction /
Habitual Alcoholism
(8) Incestuous
Marriages (6) Homosexuality /
Lesbianism
(9) Marriages against
public policy (7) Bigamous marriage
(8) Sexual Infidelity or
perversion
(9) Attempts against the
life of petitioner
(10) Abandonment
without just cause
for more than 1 year
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Who can file According to A.M. No. Spouses – 5 years after Only the spouses (cannot
02-11-10-SC): turning 21 survive the death of the
plaintiff)
(a) Before March 18, Parents – before the
2003 (petition for spouse turns 21
nullity or celebration of
(2) Insanity
marriage) – any party
Insane spouse – during
(b) On and after March
lucid intervals
18, 2003 (petition for
nullity or celebration of Sane spouse/guardian –
marriage) – only the lifetime
spouses
(3) Fraud – 5 years after
the discovery of the
fraud
(4) Force, Intimidation,
Undue Influence – 5
years after cessation
(5) Impotence or STD – 5
years from marriage
Effects of Pendency In the absence of adequate provisions in a written (1) Live separately
agreement:
(2) Designate either of
(1) Support of spouses them or a third person as
administrator of property
(2) Support and custody of children
(3) Support of spouses
(3) Visitation Rights
(4) Support and custody
of Children
(5) Visitation rights
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Effects of Decree (1) Children – (1) Children – considered (1) May live separately but
considered illegitimate legitimate conceived marriage bonds not
except for those and/or born prior to the severed
annulled under Art 36 termination of the
(2) ACP/CPG will be
and Art 53 marriage
dissolved and liquidated
(2) No ACP/CPG, or (2) ACP/CPG will be – offending spouse will
marriage settlement dissolved and liquidated have no right to the net
void because there was – the spouse in bad faith profits
no marriage – property will forfeit his share to
(3) Custody of minor
relations governed by his children or spouse
children – Innocent
co-ownership (same as (as the case may be) by
Spouse
common-law spouses) operation of law
(4) Disqualified to inherit
(3) Donations valid (3) Donations valid
from each other – will
unless in bad faith, unless in bad faith,
revoked by operation of
revoked by law revoked by law
law
(4) Revocation of (4) Revocation of
(5) Revocation of
designation as designation as
designation as
beneficiary beneficiary
beneficiary if done within
(5) Disqualified to (5) Disqualified to 5 years from decree of LS
inherit by inherit by
(6) Donations inter vivos
testate/intestate testate/intestate
are revoked if done within
5 years from decree of LS
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Art. 135: Sufficient cause for judicial should infringe the legitime of a forced heir.
separation of property [Mateo v. Lagua (1969)]
Requisites of donations propter nuptias
Art. 136: Voluntary dissolution of ACP or CPG 1. Made before the celebration of marriage
by the spouses
2. Made in consideration of marriage
Requirements of marriage settlements and 3. In favor of one or both of the future
any modification thereof [Art. 77] spouses
4. Donor must be one of the betrothed or any
Made in writing
third person
Signed by the parties Donations excluded
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ABSOLUTE COMMUNITY OF PROPERTY AND the extent of the amount sufficient to cover
CONJUGAL PARTNERSHIP OF GAINS the amount of their credits.
Art. 80. In absence of a contrary stipulation in Art. 90. The provisions on co-ownership shall
a marriage settlement, the property relations apply to the absolute community of property
of the spouses shall be governed by between the spouses in all matters not
Philippine laws, regardless of the place of the provided for in this Chapter.
celebration of the marriage and their
N.B.: The creditors of the spouse who made
residence.
such waiver may petition the court to rescind
N.B.:By the Nationality Rule [Art. 15], the rule the waiver to the extent of the amount
that Absolute Community Property (ACP) is sufficient to cover the amount of their credits.
the default mode of property relations absent
ABSOLUTE COMMUNITY OF PROPERTY
any marriage settlement applies to all
Filipinos, regardless of the place of the The community property consists of all the
marriage and their residence. property owned by the spouses at the time of
the celebration of the marriage and those
EXCEPTIONS (Art. 80)
either one or both of them acquired during
• Where both spouses are aliens the marriage. There is a presumption in law
that properties acquired during the marriage
• With respect to the extrinsic validity of belong to the community, unless it is proved
contracts affecting property not situated in that it is one of those excluded therefrom.
the Philippines and executed in the CONJUGAL PARTNERSHIP OF GAINS
country where the property is located
This property regime was formerly the default
• With respect to the extrinsic validity of regime under the Civil Code. In this regime,
contracts entered into in the Philippines but the spouses retain ownership of their
affecting property situated in a foreign separate property. However, the spouses also
country whose laws require different place in common fund the proceeds, products,
formalities for its extrinsic validity fruits and income of their separate property
and those acquired by either or both spouses
Art. 81. Everything stipulated in the
through their efforts or by chance.
settlements or contracts referred to in the
preceding articles in consideration of a future The presumption applies that all properties
marriage, including donations between the acquired during the marriage belong to the
prospective spouses maded therein, shall be CPG. There are 3 distinct patrimonies in this
rendered void if the marriage does not take system, the husband’s capital property, the
place. However, stipulations that do not wife’s paraphernal property and the conjugal
depend upon the celebration of marriage property.
shall be valid.
e.g. recognition of paternity of illegitimate SEPARATION OF PROPERTY
child
Each spouse has complete control and
ownership of his or her own properties which
Art. 89. No waiver of rights, shares and will include “all earnings from his or her
effects of the absolute community of property profession, business or industry and all fruits,
during the marriage can be made except in natural, industrial or civil, due or received
case of judicial separation of property. during the marriage form his or her separate
property.” Expenses of the family shall be
When the waiver takes place upon a judicial shouldered by the spouses in proportion to
separation of property, or after the marriage their income, or, in case of insufficiency or
has been dissolved or annulled, the same default thereof, to the current market value of
shall appear in a public instrument and shall their separate properties.
be recorded as provided in Article 77. The
creditors of the spouse who made such waiver
may petition the court to rescind the waiver to
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When it At the precise moment of the Default property regime for marriages
commences celebration of the marriage [Art. celebrated before the Family Code took effect
88] (August 3, 1988)
What it consists of All the property owned by the Proceeds, products, fruits, and income of their
spouses at the time of the separate properties
celebration of the marriage or
acquired thereafter [Art. 91] Everything acquired by them during marriage
through their own efforts
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What remains Properties acquired before the Property brought into the marriage by each
exclusive property marriage, for those with spouse as his/her own
legitimate descendants with a
former marriage (to protect rights
of children by a former marriage)
Properties acquired during the Property acquired by either spouse during the
marriage by a gratuitous title, i.e. marriage by gratuitous title
donation, inheritance by testate
and intestate succession,
including the fruits of such
properties
Except: When expressly provided
by the donor or testator that the
property shall form part of the
ACP
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Presumption All properties acquired during the All property acquired during the marriage,
marriage form part of the ACP, whether made, contracted, or registered in
unless it be proven that they are the name of one spouse, are presumed
excluded. [Art. 93] conjugal unless the contrary is prove. [Art 116]
Ownership, The administration and The administration and enjoyment of the CPG
administration, enjoyment of the community shall belong to both spouses jointly. In case of
enjoyment, and property shall belong to both disagreement, the husband’s decision shall
disposition spouses jointly. In case of prevail, subject to recourse to the court by the
disagreement, the husband’s wife for proper remedy, within 5 years from
decision shall prevail, subject to the date of contract (Art. 124)
recourse to the court by the wife
for a proper remedy, within 5
years from the date of contract De Ansaldo v. Sheriff of Manila (1937): Spouses
(Art. 96) are not co-owners of CPG during the marriage
and cannot alienate the supposed ½ interest
of each in the said properties. The interest of
the spouses in the CPG is only inchoate or a
mere expectancy and does not ripen into title
until it appears after the dissolution and
liquidation of the partnership that there are
net assets.
Either spouse may, through a will, Art. 124, par. 2: Disposition or encumbrance of
dispose of his or her interest in conjugal property requires the following:
the community property. [Art. 97] Authority of the court or written consent of the
However, the will should refer other spouse. The absence of such will render
only to his or her share in the such encumbrance void.
community property.
Dissolution of the Terminates upon [Art. 99]: Terminates upon [Art. 126; cf. Art. 99]:
regime
1. Death of either spouse – 1. Death
follow rules in Art. 103
2. Legal separation
2. Legal separation – follow
3. Annulment or judicial declaration of
rules in Arts. 63 and 64
nullity
3. Annulment or judicial
Judicial separation of property
declaration of nullity – follow
rules in Arts. 50 and 52
Judicial separation of property
during marriage – follow rules in
Arts. 134 to 138
Rules on de facto Rules on de facto separation [Art. Rules on de facto separation [Art. 127]
separation 100]
De facto separation does not affect the CPG,
De facto separation does not except that:
affect the ACP, except that:
Spouse who leaves the conjugal home
Spouse who leaves the conjugal without just cause shall not be entitled to
home without just cause shall not support; however, he/she is still required to
be entitled to support; however, support the other spouse and the family
he/she is still required to support
2. If consent is necessary for transaction but is
the other spouse and the family
withheld or otherwise unobtainable,
If consent is necessary for authorization may be obtained from the court
transaction but is withheld or
3. Support for family will be taken from the
otherwise unobtainable,
partnership property.
authorization may be obtained
from the court 4. If partnership property is insufficient,
spouses shall be solidarily liable
Support for family will be taken
from the ACP
If ACP is insufficient, spouses
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Rules in case of termination of marriage by death of one of the spouses [Art. 104]:
1. The community property shall be liquidated in the same proceeding for the
settlement of the estate of the deceased spouse.
2. If no such judicial settlement proceeding is instituted, surviving spouse shall
liquidate the community property either judicially or extra-judicially within
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Separation of Property of the Spouses and Administration of Common Property by One Spouse During the
Marriage
Art. 134. In the absence of an express declaration in the marriage settlements. The separation of
property between spouses during the marriage shall not take place except by judicial order. Such
judicial separation of property may either be voluntary or for sufficient cause.
Sufficient Causes for Judicial Separation of Grounds for Return to Previous Regime
Property (Art. 135)
(Art. 141)
(1) Spouse of petitioner has been sentenced to a (1) Termination of the civil interdiction
penalty which carries with it the penalty of civil
interdiction
(3) Loss of parental authority of the spouse of (3) Restoration of parental authority to the spouse
petitioner has been decreed by the court previously deprived of it
(4) Spouse of petitioner has abandoned the latter (4) When the spouse who left the conjugal home
or failed to comply with his or her obligations to without legal separation resumes common life with
the family the other
(5) The spouse granted the power of (5) When the court, being satisfied that the spouse
administration in the marriage settlements has granted the power of administration in will not again
abused that power abuse that power, authorizes the resumption of said
administration
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(6) At the time of the petition, the spouses have (6) Reconciliation and resumption of common life of
been separated in fact for at least 1 year and the spouses who had been separated in fact for at
reconciliation is highly improbable. least 1 year
SEPARATION OF PROPERTY
Each spouse’s earnings from his or her own profession, business, or industry
Spouses may own, dispose, possess, and administer separate estates without the
consent of the other
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In Re: voluntary dissolution of CPG of Sps. 2nd marriages were not informed; the
Bernas (1965): separation of property may prejudice the
rights and shares of the children.
Man and woman living together as Man and woman living together as
husband and wife, with capacity to husband and wife, NOT capacitated to
marry (Art.5, without any legal marry
impediment)
a. Under 18 years old
-at least 18 years old
b. Adulterous relationship
-not violative of Art. 37 (incestuous
c. Bigamous/polygamous marriage
Applicability void marriage)
d. Incestuous marriages under Art. 37
-not violative of Art. 38 (void marriage
by reason of public policy) e. Void marriages by reason of public policy
under Art. 38
-not bigamous
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Where only one party to a void If one party is validly married to another
marriage is in good faith, share of his/her share in the co-owned properties
party in bad faith is forfeited: will accrue to the ACP/CPG of his/her
existing valid marriage.
-In favor of their common children
-In case of default of or waiver by any
or all of the common children or their If the party who acted in bad faith is not
Forfeiture
descendants, each vacant share shall validly married to another, his/her share
belong to the respective surviving shall be forfeited in the same manner as
descendants that provided in Art 147.
-In the absence of such descendants,
such share belongs to the innocent
The same rules on forfeiture shall apply if
party
both parties are in bad faith.
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VII. Family Relations The case will be dismissed if it is
shown that no such efforts were
THE FAMILY AS AN INSTITUTION made.
Exceptions
Art. 149. The family being the foundation of
the nation is a basic social institution which o The general rule shall not apply to
public policy cherishes and protects. cases which may not be the subject of
Consequently, family relations are governed compromise.
by law and no custom practice or agreement o The following cannot be subject of
destructive of the family shall be recognized compromise: (Art 2035)
or given effect.
1. Civil status of persons,
2. Validity of marriage or a legal
Art. 150. Family relations include those: separation,
(1) Between husband and wife 3. Any ground for legal separation,
(2) Between parents and children 4. Future support (as it is presumed
(3) Among other ascendants and to be needed for the survival of
descendants the one receiving support),
(4) Among brothers and sisters, full or half 5. Jurisdiction of courts,
blood. 6. Future legitime
General Rules THE FAMILY HOME
The family is an institution that is A. WHAT CONSTITUTES THE FAMILY
governed by law HOME?
The internal aspect of the family is sacred General Rules
and inaccessible to law because law must
o The family home is the dwelling
respect the freedom of action of man.
house where family resides and the
EFFECTS OF FAMILY RELATIONSHIP ON land on which it is sustained (Art. 152)
LEGAL DISPUTES
o The family home must be part of the
Art. 151. No suit between members of the properties of the absolute community
same family shall prosper unless it should or the conjugal partnership, or of the
appear form the verified complaint or petition exclusive properties of either spouse
that earnest efforts toward a compromise with the other’s consent. It may also
have been made but that the same have be constituted by an unmarried head
failed. If it is shown that no such efforts were of a family in his or her own property.
in fact made the case must be dismissed. (Art. 156)
o The actual value of the family home
General Rules shall not exceed, at the time of its
Suit between members of the same constitution, the amount of
family shall prosper only if it shall P300,000 in urban areas, and
appear in a verified complaint or P200,000 in rural areas, or such
petition that: amounts as may hereafter be fixed by
law (Art. 157)
o Earnest efforts towards a
compromise have been made; o For the purposes of availing of the
benefits of a family home as provided
o Such efforts have failed; and for in this Chapter, a person may
o Such earnest efforts and the constitute, or be the beneficiary of,
fact of failure must be only one home. (Art. 161)
alleged.
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B. WHO MAY CONSTITUTE THE FAMILY Art. 154. The beneficiaries of a family home
HOME? are:
General Rules 1. The husband and wife, or an unmarried
o The family home may be constituted person who is the head of a family; and
jointly by the husband and wife or an 2. Their parents, ascendants,
unmarried head of the family (Art. descendants brothers, and sisters
152) (legitimate/illegitimate), who are living
o A person may constitute and be the in the family home and who depend on
beneficiary of only one family home the head of the family for support
(Art. 161)
General Rule
C. WHEN IS IT DEEMED CONSTITUTED? o Requisites to be a beneficiary:
General Rules
o The relationship is within those
o The family home is deemed enumerated in Art. 150
constituted on a house and lot form
o They live in the family home
the time it is occupied as a family
residence. o They are dependent for legal
support on the head of the family
o The family home is exempt from the
following from the time of its o Requirements for the sale, alienation,
constitution and so long as any of its donation, assignment, or
beneficiaries actually resides therein encumbrance of the family home (Art.
(Art. 153): 158)
(1) Execution o The written consent of the
person constituting it,
(2) Forced sale
o That of the spouse of the
(3) Attachment
person constituting it, and
Exceptions in the exemption of the family
o That of majority of the
home from execution (Art. 155)
beneficiaries of legal age
(1) Nonpayment of taxes.
Patricio vs. Dario (2006): The law explicitly
(2) Debts incurred prior to the constitution of provides that occupancy of the family home
the family home. either by the owner thereof or by “any of its
beneficiaries” must be actual. That which is
(3) Debts secured by mortgages on the
“actual” is something real, or actually
premises before or after such
existing, as opposed to something merely
constitution.
possible, or to something which is
(4) Debts due to laborers, mechanics, presumptive or constructive. Actual
architects, builders, materialmen and occupancy, however, need not be by the
others who have rendered service or owner of the house specifically. Rather, the
furnished material for the construction of property may be occupied by the
the building. “beneficiaries” enumerated in Article 154 of
the Family Code, which may include the in-
D. BENEFICIARIES laws where the family home is constituted
jointly by the husband and wife. But the law
definitely excludes maids and overseers. They
are not the beneficiaries contemplated by the
Code.
E. WHEN TERMINATED
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Art. 159. The family home shall continue Exception: When waived, as when the obligor
despite the death of one or both of the voluntarily executes a dead of mortgage over
spouses or of the unmarried head of the family his family home (Sec. 13, Rules of Court)
for a period of ten years or for as long as there
is a minor beneficiary and the heirs cannot
partition the same unless the court finds G. RIGHTS OF CREDITORS
compelling reasons therefor. The rule shall
apply regardless of whoever owns the property
or constituted the family home. Art. 157. The actual value of the family
home shall not exceed at the time of its
General Rule constitution the amount of three hundred
o Article 159 imposes the proscription thousand pesos in urban areas and two
against the immediate partition of hundred thousand pesos in rural areas or
the family home regardless of its such amounts as may hereafter be fixed by
ownership. This signifies that even if law.
the family home has passed by
General Rules
succession to the co-ownership of the
heirs, or has been willed to any one of o In any event, if the value of the
them, this fact alone cannot currency changes after the adoption
transform the family home into an of this Code, the value most favorable
ordinary property, much less dispel for the constitution of a family home
the protection cast upon it by the law. shall be the basis of evaluation.
The rights of the individual co-owner
o Urban areas include chartered cities
or owner of the family home cannot
and municipalities
subjugate the rights granted under
Article 159 to the beneficiaries of the o All others are deemed to be rural
family home. [Arriola v. Arriola areas
(2008)]
o To warrant the execution of sale of
F. WHEN IT MAY BE SOLD the family home under Art 160, the
following facts need to be
Art. 158. The family home may be sold established: (1) there was an increase
alienated, donated, assigned, or in actual value (2) the increase
encumbered by the owner or owners thereof resulted from voluntary
with the written consent of the person improvements (3) the increase in
constituting the same the latter’s spouse actual value exceeded the maximum
and a majority of the beneficiaries of legal limit allowed by Art 157 [Eulogio vs.
age. In case of conflict the court shall Bell (2015)]
decide.
Procedure to avail of right under Art. 160
Art. 159. The family home shall continue
1. The creditor must file a motion in the
despite the death of one or both spouses or
court proceeding where he obtained a
of the unmarried head of the family for a
favorable decision for a writ of execution
period of 10 years or as long as there is a
against the family home.
minor beneficiary, and the heirs cannot
partition the same unless the court finds 2. There will be a hearing on the motion
compelling reasons therefor. This rule shall where the creditor must prove that the
apply regardless of whoever owns the actual value of the family home exceeds
property or constituted the family home. the maximum amount fixed by the FC
either at the time of its constitution or as
General Rule: As a rule, the family home is a result of improvements introduced
exempt from execution, forced sale or thereafter.
attachment.
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(b) To receive support from their parents, Eceta v. Eceta (2004): Signature of the father
their ascendants, and in proper cases, on the birth certificate is considered as an
their brothers and sisters, in conformity acknowledgement of paternity and mere
with the provisions of the Code on presentation of a duly authenticated copy of
Support such certificate will successfully establish
filiation.
(c) To be entitled to the legitimate and other
Successional rights granted to them by Baluyut v. Baluyut (1990): Unsigned birth
the Civil Code certificates are not evidence of recognized
filiation.
C. ILLEGITIMATE CHILDREN
De Jesus v. Estate of Decedent Juan Gamboa
Art. 165. Children conceived and born outside Dizon (2001): The due recognition of an
a valid marriage are illegitimate, unless illegitimate child in a record of birth, a will, a
otherwise provided in this Code. statement before a court of record, or in any
Who are illegitimate children authentic writing, is in itself a consummated
act of acknowledgement of the child, and no
GENERAL RULE: Those conceived and born further court action is required.
outside of a valid marriage. [Art. 165]
SECONDARY EVIDENCE
EXCEPTIONS:
Jison v. CA (1998): Rule 130, Sec. 40 is limited
(1) Children of marriages void under Art. 36 to objects commonly known as family
(psychological incapacity); and possessions reflective of a family's reputation
(2) Under Art. 53 (subsequent marriages or tradition regarding pedigree like
which did not comply with Art. 52). inscriptions on tombstones, monuments, or
(Sempio-Dy) coffin plates.
Art. 175. Illegitimate children may establish Heirs of Rodolfo Bañas v. Heirs of Bibiano
their illegitimate filiation in the same way and Bañas (1985): "Su padre [Your father]" ending
on the same evidence as legitimate children. in a letter is only proof of paternal solicitude
and not of actual paternity. Signature on a
The action must be brought within the same report card under the entry of
period specified in Article 173, except when "Parent/Guardian" is likewise inconclusive of
the action is based on the second paragraph open admission.
of Article 172, in which case the action may be
brought during the lifetime of the alleged Gono-Javier vs. Court of Appeals (1994): Mere
parent. possession of status as an illegitimate child
does not make an illegitimate child
GENERAL RULE: Illegitimate children may recognized but is only a ground for bringing
establish their illegitimate filiation in the an action to compel judicial recognition by
same way and on the same evidence (primary the assumed parent.
or secondary) as legitimate children.
Perla v. Baring and Perla (2012): To prove open
Action for Claiming Filiation [Art. 175]: and continuous possession of the status of an
(a) For actions based on primary evidence, illegitimate child, there must be evidence of
the same periods stated in Art. 173 apply. the manifestation of the permanent intention
of the supposed father to consider the child
(b) For actions based on secondary evidence, as his, by continuous and clear
the action may only be brought during manifestations of parental affection and care,
the lifetime of the alleged parent. which cannot be attributed to pure charity.
PRIMARY EVIDENCE Meanwhile, the lack of participation of the
Mendoza v. Melia (1966): Baptismal supposed father in the preparation of a
certificates are given probative value only for baptismal certificate renders this document
births before 1930. Birth certificates must be incompetent to prove paternity. Baptismal
signed by the parents and sworn for it to be certificates are per se inadmissible in
admitted as evidence. evidence as proof of filiation and they cannot
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be admitted indirectly as circumstantial (b) However, may use the surname of father
evidence to prove the same if
De Jesus v. Syquia (1933): By "open and Their filiation has been expressly
continuous possession of the status of a recognized by the father through the
legitimate child" is meant the enjoyment by record of birth appearing in the civil
the child of the position and privileges usually register; or
attached to the status of a legitimate child,
like bearing the paternal surname, treatment There is an admission in a public
by the parents and family of the child as document or private handwritten
legitimate, constant attendance to the child's instrument made by the father.
support and education, and giving the child Provided, the father has the right to
the reputation of being a child of his parents. institute an action before the regular
OTHER EVIDENCE courts to prove non-filiation during
his lifetime [RA 9255]
Agustin v. CA (2005): DNA evidence can be
used as proof of paternity. Grande v. Antonio (2014): The use of the word
“may” in Art. 176 readily shows that
Estate of Rogelio Ong v. Diaz (2007): DNA an acknowledged illegitimate child is under
evidence can still be used even after the no compulsion to use the surname of his
death of the parent. illegitimate father. The word “may” is
Lim v. CA (1975): Marriage certificates cannot permissive and operates to confer
be used as proof of filiation. discretion upon the illegitimate children.
Gotardo v. Buling (2012): There are four (c) Shall be entitled to Support in conformity
significant procedural aspects of a traditional with the Family Code
paternity action that parties have to face: (d) Legitime shall consist of one-half of the
a prima facie case, affirmative defenses, legitime of a legitimate child.
presumption of legitimacy, and physical
resemblance between the putative father and D. LEGITIMATED CHILDREN
the child. A prima facie case exists if a woman Art. 177. Children conceived and born outside
declares — supported by corroborative proof of wedlock of parents who, at the time of
— that she had sexual relations with the conception of the former, were not
putative father; at this point, the burden of disqualified by any impediment to marry each
evidence shifts to the putative father. Further, other, or were so disqualified only because
the two affirmative defenses available to the either or both of them were below eighteen
putative father are: (1) incapability of sexual (18) years of age, may be legitimated. (as
relations with the mother due to either amended by RA9858)
physical absence or impotency, or (2) that the
mother had sexual relations with other men GENERAL RULE: "Legitimated" children are
at the time of conception. illegitimate children who because of the
subsequent marriage of their parents are, by
Art. 176. Illegitimate children shall use the legal fiction, considered legitimate.
surname and shall be under the parental
authority of their mother, and shall be To be capable of legitimation:
entitled to support in conformity with this (1) The child must have been conceived and
Code. The legitime of each illegitimate child born outside of wedlock; and
shall consist of one-half of the legitime of a
legitimate child. Except for this modification, (2) The parents, at the time of the child's
all other provisions in the Civil conception, were not disqualified by any
Code governing successional rights shall impediment to marry each other, or
remain in force. disqualified only because either or both of
them were below 18 years old. (Art. 177 as
Rights of Illegitimate Children: amended by RA 9858)
(a) Use the Surname and be under the Procedure and Effects:
parental authority of the mother
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LEGITIMATION ADOPTION
The law merely makes legal what exists The law creates by fiction a relation
Legal effect
by nature which did not in fact exist
Both parents
Except when:
One spouse seeks to adopt the
legitimate child of the other
Who should apply Both parents One spouse seeks to adopt his own
illegitimate child, provided that the
other spouse has signified their
consent thereto
Spouses are legally separated from
each other
Same status and rights with that of a Creates a relationship only between the
Effect on parent- legitimate child not only in relation to the child and the adopting parents [Sayson
child relationship legitimizing parents but also to other v. CA (1992)]
relatives
exceeding 60 days per 1 year for (e) A child whose previous adoption has
professional, business, or emergency been rescinded
reasons are allowed)
(f) A child whose biological or adoptive
(3) Has been certified by his/her parent(s) has died, provided that no
diplomatic or consular office or any proceedings shall be initiated within 6
appropriate government agency that months from the time of death of said
he/she has the legal capacity to parent(s)
adopt in his/her country
(4) His/her government allows the
Exceptions to the Requirement of a
adoptee to enter his/her country as
Certification that the Child is Available for
his/her adoptee and reside there
Adoption (Sec. 4):
permanently as an adopted child
(5) Has submitted all the necessary Adoption of an illegitimate child by
clearances and such certifications as his/her biological parent;
may be required Adoption of a child by his/her
**Requirements in 3, 4 and 5 may be stepparent;
waived under the following circumstances: Adoption by a relative within the 4th
(a) Adopter is a former Filipino Citizen civil degree by consanguinity or
who seeks to adopt a relative within affinity
the 4th degree of consanguinity or Persons whose written consent is necessary
affinity for adoption (Sec. 9)
(b) Adopter seeks to adopt the legitimate (1) The prospective adoptee if 10 years or
or illegitimate child of his/her Filipino older
spouse
(2) The prospective adoptee’s biological
(c) Adopter is married to a Filipino parents, legal guardian or the
Citizen and seeks to adopt jointly with government instrumentality or
his/her spouse a relative within the institution that has custody of the
4th degree of consanguinity or affinity child
of the Filipino spouse
(3) The prospective adopters’ legitimate
C. Guardians and adopted children who are 10
With respect to their wards, after the years or older
termination of the guardianship and (4) The prospective adopters’ illegitimate
clearance of his/her accountabilities. children, if any, who are 10 years or
B. WHO CAN BE ADOPTED (SEC. 8) older and living with them
(a) Minor who has been administratively (5) The spouse, if any, of the person
or judicially declared available for adopting or to be adopted.
adoption Note: A decree of adoption shall be effective
(b) Legitimate child of one spouse by as of the date the original petition was filed. It
another also applies in case the petitioner dies before
the issuance of the decree of adoption to
(c) Illegitimate child by a qualified protect the interest of the adoptee.
adopter to improve the child’s status
to that of legitimacy C. PRE-ADOPTION PROCEDURES
(d) A person of legal age if, prior to the
adoption, said person has been 1. Voluntary Commitment of biological
consistently considered and treated parent(s) wanting to put their child up for
by the adopter(s) as his/her child adoption
since minority
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D. ADOPTION PROCEDURES
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(c) Has the capacity to act and assume all Birth Certificate / Foundling
rights and responsibilities of parental Certificate
authority under his national laws, and has Deed of Voluntary Commitment/
undergone the appropriate counseling Decree of Abandonment/ Death
from an accredited counselor in his/her Certificate of parents
country
Medical Evaluation / History
(d) Has not been convicted of a crime
involving moral turpitude Psychological Evaluation, as
necessary
(e) Is eligible to adopt under his/her national
law Recent photo of the child
(f) Is in a position to provide the proper care Where the petition for adoption was granted
and support and to give the necessary after the child had shot and killed a girl, the
moral values and example to all his Supreme Court did not consider the
children, including the child to be retroactive effect given to the decree of
adopted adoption so as to impose a liability upon
adopting parents at a time when adopting
(g) Agrees to uphold the basic rights of the
parents had no actual or physically custody
child as embodied under Philippine laws,
over the child. Retroactive effect may perhaps
the U.N. Convention on the Rights of the
be given to the granting of the petition for
Child, and to abide by the rules and
adoption where such is essential to permit
regulations issued to implement the
the accrual of some benefit or advantage in
provisions of this Act
favor of the adopted child. In the instant case,
(h) Comes from a country with whom the however, to hold that parental authority had
Philippines has diplomatic relations and been retroactively lodged in the adopting
whose government maintains a similarly parents so as to burden them with liability for
authorized and accredited agency and a tortuous act that they could not have
that adoption is allowed under his/her foreseen and which they could not have
national laws prevented would be unfair and
(i) Possesses all the qualifications and none unconscionable. [Tamargo v. CA (1992)]
of the disqualifications provided in Adoption is a juridical act, proceeding in rem.
applicable Philippine laws. Because it is artificial, the statutory
requirements in order to prove it must be
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XII. Emancipation
SUBSTITUTE PARENTAL AUTHORITY OVER
DISADVANTAGED CHILDREN [Art. 217] Art. 234. Emancipation takes place by the
attainment of majority. Unless otherwise
Entrusted in summary judicial proceedings to: provided, majority commences at the age of
(1) Heads of children’s homes eighteen years.
(2) Orphanages Art. 236. Emancipation shall terminate
parental authority over the person and
(3) Similar institutions duly accredited by the property of the child who shall then be
proper government agency (such as the qualified and responsible for all acts of civil
DSWD) life, save the exceptions established by
Who are disadvantaged children: existing laws in special cases.
(1) Foundlings – one who is deserted or Contracting marriage shall require parental
abandoned as an infant or a child, with consent until the age of twenty-one.
parents, guardian, or relatives being Nothing in this Code shall be construed to
unknown or one who is committed in an derogate from the duty or responsibility of
orphanage or charitable or similar parents and guardians for children and wards
institution with unknown facts of birth below twenty-one years of age mentioned in
and parentage the second and third paragraphs of Article
(2) Abandoned – one who has no proper 2180 of the Civil Code.
parental care or guardianship, or whose Persons between ages twenty-one and
parents or guardians have deserted him twenty-four, shall be obliged to ask their
for a period of at least six continuous parents or guardian for advice upon the
months intended marriage.
(3) Neglected – one whose basic needs have
No advice or unfavorable advice: marriage
been deliberately unattended or
license shall not be issued till after three
inadequately attended
months following the completion of the
(4) Abused – one who is taken advantage of, publication of the application therefor
exploited and maltreated
Sworn statement by the contracting
(5) Others similarly situated parties that advice has been sought,
PERSONS EXERCISING SPECIAL PARENTAL together with written advice if any or
AUTHORITY [Art. 218] refusal to give advice: attached to the
application for the marriage license [Art.
(1) School, its administrators and teachers; 15, FC]
or
RA 6809:
(2) The individual, entity or institution
engaged in child care By virtue of this law, emancipation can no
longer take place by virtue of the minor’s
Note: Exercised over minor child while under marriage or by the concession of the parents
their supervision, instruction or custody. to a minor in a recorded public instrument.
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Art. 381. When a person disappears from his Art. 384. Two years having elapsed without
domicile, his whereabouts being unknown, any news about the absentee or since the
and without leaving an agent to administer receipt of the last news, and five years in
his property, the judge, at the instance of an case the absentee has left a person in
interested party, a relative, or a friend, may charge of the administration of his property,
appoint a person to represent him in all that his absence may be declared.
may be necessary.
This same rule shall be observed when
Art. 385. The following may ask for the
under similar circumstances the power
declaration of absence:
conferred by the absentee has expired.
1. The spouse present;
2. The heirs instituted in a will, who may
Art. 382. The appointment referred to in the
present an authentic copy of the same;
preceding article having been made, the
judge shall take the necessary measures to 3. The relatives who may succeed by the
safeguard the rights and interests of the law of intestacy;
absentee and shall specify the powers,
4. Those who may have over the property of
obligations and remuneration of his
the absentee some right subordinated to
representative, regulating them, according
the condition of his death.
to the circumstances, by the rules
concerning guardians.
Art. 386. The judicial declaration of absence
shall not take effect until six months after
Art. 383. In the appointment of a
its publication in a newspaper of general
representative, the spouse present shall be
circulation.
preferred when there is no legal separation.
If the absentee left no spouse, or if the When may absence be declared?
spouse present is a minor, any competent • Two years without any news about the
person may be appointed by the court. absentee
Requisites: The judge may appoint a person to • Five years if the absentee left a person in
represent absentee when: charge of administration of his property
(1) Person disappears from his domicile • Declaration takes effect only after six
months after publication in a newspaper
(2) His whereabouts are unknown
of general circulation
(3) No agent to administer his property
Who may ask for a declaration of absence?
(4) An interested party, a relative, or a
(1) Spouse present
friend files the action
(2) Heirs instituted in a will, who may
Who may be appointed as representative?
present an authentic copy of the
(1) Spouse present shall be preferred same;
when there is no legal separation (3) Relatives who may succeed by the
(2) If no spouse or spouse is law of intestacy;
incapacitated, any competent person
(4) Those who may have some right over
B. DECLARATION OF ABSENCE [ARTS. the property of the absentee,
384-389] subordinated to the condition of his
death.
C. ADMINISTRATION OF THE
PROPERTY OF THE ABSENTEE [ARTS.
387-389]
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Art. 411. Every civil registrar shall be civilly In the case of Jennifer Cagandahan, who
responsible for any unauthorized alteration suffered from Congenital Adrenal
made in any civil register, to any person Hyperplasia and had two sex organs and
suffering damage thereby. However, the civil whose female sex organs did not
registrar may exempt himself from such develop normally, the Court granted her
liability if he proves that he has taken every petition to change her registered sex
reasonable precaution to prevent the from female. [Republic v Cagandahan
unlawful alteration. (2008)].
correction of erroneous entry concerning the Sec. 4. Notice and publication. - Upon the
day and month in the date of birth or the sex filing of the petition, the court shall, by an
of a person, as the case may be, shall be order, fix the time and place for the hearing of
published at least once a week for two (2) the same, and cause reasonable notice
consecutive weeks in a newspaper of general thereof to be given to the persons named in
circulation. the petition. The court shall also cause the
order to be published once a week for three
Furthermore, the petitioner shall submit a
(3) consecutive weeks in a newspaper of
certification from the appropriate law
general circulation in the province.
enforcement agencies that he has no pending
case or no criminal record. Sec. 5. Opposition. - The civil registrar and
any person having or claiming any interest
The petition and its supporting papers shall
under the entry whose cancellation or
be filed in three (3) copies to be distributed as
correction is sought may, within fifteen (15)
follows: first copy to the concerned city or
days from notice of the petition, or from the
municipal civil registrar, or the consul
last date of publication of such notice, file his
general; second copy to the Office of the Civil
opposition thereto.
Registrar General; and third copy to the
petitioner Sec. 6. Expediting proceedings. - The court in
which the proceeding is brought may make
C. RULE 108, RULES OF COURT orders expediting the proceedings, and may
- Cancellation or correction of entries in the also grant preliminary injunction for the
civil registry preservation of the rights of the parties
pending such proceedings.
Sec. 1. Who may file petition. - Any person
interested in any act, event, order or decree Sec. 7. Order. - After hearing, the court may
concerning the civil status of persons which either dismiss the petition or issue an order
has been recorded in the civil register, may granting the cancellation or correction prayed
file a verified petition for the cancellation or for. In either case, a certified copy of the
correction of any entry relating thereto, with judgment shall be served upon the civil
the Court of First Instance of the province registrar concerned who shall annotate the
where the corresponding civil registry is same in his record.
located. Who may file petition? - Any person interested
Sec. 2. Entries subject to cancellation or in any act, event, order or decree concerning
correction. - Upon good and valid grounds, the civil status of persons which has been
the following entries in the civil register may recorded in the civil register
be cancelled or corrected: (a) births; (b) Where filed? - Verified petition for
marriages; (c) deaths; (d) legal separations; cancellation or correction of entry in the civil
(e) judgments of annulments of marriage; (f) registry may be filed with the Regional Trial
judgments declaring marriages void from the Court of the province where the
beginning; (g) legitimations; (h) adoptions; (i) corresponding civil registry is located
acknowledgments of natural children; (j)
naturalization (k) election, loss or recovery of Entries subject to Cancellation/ Correction
citizenship (l) civil interdiction; (m) judicial • Births
determination of filiation; (n) voluntary
emancipation of a minor; and (o) changes of • Marriages
name. • Deaths
Sec. 3. Parties. - When cancellation or • Legal separations
correction of an entry in the civil register is
sought, the civil registrar and all persons who • Judgments of annulments of marriage
have or claim any interest which would be • Judgments declaring marriages void from
affected thereby shall be made parties to the the beginning
proceeding.
• Legitimations
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CIVIL LAW
PROPERTY
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(ii) Mines, quarries, and slag dumps, Immovables by Nature: cannot be moved
while the matter thereof forms part of from place to place; their intrinsic qualities
the bed, and waters either running or have no utility except in a fixed place. [pars. 1
stagnant [par. 8]; & 8]
(b) By incorporation (1) LAND, BUILDINGS, ROADS AND
CONSTRUCTIONS OF ALL KINDS
(i) Trees, plants, and growing fruits,
ADHERED TO THE SOIL
while they are attached to the land or
form an integral part of an Building - their adherence to the land
immovable [par. 2]; must be permanent and substantial, not
merely superimposed
(ii) Everything attached to an immovable
in a fixed manner, in such a way that Buildings have been considered as
it cannot be separated therefrom immovables by nature, despite:
without breaking the material or
(a) Agreement by the parties e.g. they
deterioration of the object [par. 3];
constitute a separate mortgage on
(iii) Fertilizer actually used on a piece of the building and the land [Punzalan
land [par. 7]; v. Lacsamana (1983)]
(c) By destination (b) Separate Ownership i.e. a building on
rented land is still considered an
(i) Statues, reliefs, paintings or other
immovable. [Tolentino]
objects for use or ornamentation,
placed in buildings or on lands by the (c) No matter who built it
owner of the immovable in such a
Where Building Is Treated As Personal
manner that it reveals the intention to
Property: Doctrine of Estoppel
attach them permanently to the
tenements [par. 4]; “although there is no specific statement
referring to the subject house as personal
(ii) Machinery, receptacles, instruments
property, yet by ceding, selling or transferring
or implements intended by the owner
a property by way of chattel mortgage could
of the tenement for an industry or
only have meant to convey the house as
works which may be carried on in a
chattel, or at least, intended to treat the
building or on a piece of land, and
same as such, so that they should not now be
which tend directly to meet the needs
allowed to make an inconsistent stand by
of the said industry or works [par. 5];
claiming otherwise.” [Tumalad v. Vicencio,
(iii) Animal houses, pigeon-houses, (1971)]
beehives, fish ponds or breeding
places of similar nature, in case their
owner has placed them or preserves (2) MINES, QUARRIES, AND SLAG DUMPS,
them with the intention to have them WHILE THE MATTER THEREOF FORMS
permanently attached to the land, PART OF THE BED, AND WATERS
and forming a permanent part of it; EITHER RUNNING OR STAGNANT
the animals in these places are
Minerals are those still deposited in the
included [par. 6];
soil;
(iv) Docks and structures which, though
When minerals have been extracted, they
floating, are intended by their nature
become chattel.
and object to remain at a fixed place
on a river, lake, or coast [par. 9]; Slag Dump: dirt and soil taken from a
mine and piled upon the surface of the
(d) By analogy
ground. Minerals can be found inside the
(i) Contracts for public works, and dump.
servitudes and other real rights over
Waters: those still attached to or running
immovable property [par. 10];
thru the soil or the ground.
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(b) Placed by the owner or the tenant (as A floating house tied to a shore and used
agent); as a residence is considered real property,
considering that the waters on which it
(c) The machine, receptacle, instrument,
floats are considered immovables.
implement must also be essential to
the business (tend directly to meet But if the floating house makes it a point
the needs of industry or work) in order to journey from place to place, it assumes
to be considered realty. [Mindanao the category of a vessel, and is considered
Bus Co. v City Assessor (1962)] a movable.
(i) Only real property can be the (b) Movables - governed by the personal
subject of real estate mortgage laws of the owner. (which in some
[NCC 2124] and antichresis. [NCC cases is the law of his nationality and
2132] in other cases, the law of his domicile)
(ii) Only personal property can be the (7) Affecting third persons
subject of voluntary deposit [NCC (a) In transactions involving real property
1966], pledge [NCC 2094] and – must be recorded in the Registry of
chattel mortgage. [Act 1508] Property to affect third persons.
(b) Donations of real property to be valid (b) In transactions involving personal
are required to be in a public property – registration is not
instrument [NCC 749] but a donation required, except for chattel
of a movable may be made orally or mortgages. [Chattel Mortgage
in writing. [NCC 748] Register, NCC 2140]
(3) For acquisitive prescription (8) Preference of credits
(a) Real property can be acquired by (a) Movables governed by NCC 2241
prescription in 30 years (bad faith)
(b) Immovables governed by NCC 2242
and 10 years (good faith). (NCC 1137,
1134) (9) Double sales (NCC 1544)
(b) Movables can be acquired by (a) For movables – ownership shall be
prescription in 8 years (bad faith) and transferred to the person who first
4 years (good faith). (NCC 1132) took possession thereof in good faith
(4) Actions for recovery of possession
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D. BASED ON CONSUMABILITY
III. Ownership
Only applies to movable property,
determined by nature [NCC 418]
A. DEFINITION AND CONCEPT
Independent right of exclusive enjoyment and
D.1. CONSUMABLE control of a thing.
(1) Movables which cannot be used in a Has the purpose of deriving all advantages
manner appropriate to their nature required by the reasonable needs of the
without their being consumed. (e.g. food) owner/holder of right and promotion of
(2) Consumable goods cannot be the subject general welfare.
matter of a commodatum unless the A complete subjection to an owner’s will.
purpose of the contract is not the
consumption of the object, as when it is May be exercised in everything not prohibited
merely for exhibition. by public law or the rights of another. [NCC
427]
D.2. NON-CONSUMABLE
B. TYPES OF OWNERSHIP
All others not falling under ‘consumable’ e.g.
money in coin. (1) Full Ownership - With complete rights
over the property.
(2) Naked Ownership - Absence of jus
E. BASED ON SUSCEPTIBILITY TO fruendi and jus utendi.
SUBSTITUTION
(3) Sole Ownership - Ownership vested only
Only applies to movables, determined by the in one person.
intention of the parties.
(4) Co-Ownership - Ownership vested in 2 or
more persons in ideal shares or undivided
E.1. FUNGIBLES interest.
Things that, because of their nature or the (5) Beneficial ownership - Right to enjoy the
will of the parties, are capable of being use and fruits of a property
substituted by others of the same kind, not
having a distinct individuality.
C. RIGHT IN GENERAL
C.1. RIGHTS INCLUDED IN OWNERSHIP
E.2. NON-FUNGIBLES [NCC 428]
Things that cannot be substituted for (a) Right to enjoy and dispose of a thing,
another; without other limitations than those
If the parties agreed that the same thing be established by law.
returned, it is not fungible. (b) Right of action against the holder and
possessor of the thing in order to recover
it.
F. BASED ON THE CONSTITUTION [ARTICLE
XII, SEC 3]
(1) Public Agricultural Land; C.2. BUNDLE OF RIGHTS
(2) Mineral Land; (a) Jus Utendi: right to use and enjoy
(3) Timber Land; (b) Jus Fruendi: right to receive the fruits
(4) National Parks. (c) Jus Abutendi: right to consume a thing by
use
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Real Rights Personal Rights Every owner may enclose or fence his land or
tenements by any other means without
detriment to servitudes constituted thereon.
It is directed against the It is binding or
whole world, giving rise enforceable only
to real actions against against a particular
ACTIONS TO RECOVER OWNERSHIP AND
3rd persons. person giving rise to
POSSESSION OF PROPERTY
personal actions
against such debtor Immovable Property
and his privies. (1) Accion Reivindicatoria
Recovery of ownership of real property.
REAL ACTION v. PERSONAL ACTION (ROC, Including but not limited to possession.
Rule 4 Sec 1-2) Prescription of Action: 30 years.
Real action - Actions affecting title to or
possession of real property or any interest
therein. (2) Accion Publiciana
Personal action - All other actions. Recovery of real right of possession
(posession de jure).
Judgment as to who has the better right of
ACTION IN REM v. ACTION IN PERSONAM v. possession.
ACTION QUASI IN REM
Also, actions for ejectment not filed within 1
Action in rem - Action against a property, year must be filed as accion publiciana.
judgment binding against the whole world.
Prescription: 10 years.
Action in personam - Action against a specific
person, judgment binding against that
particular person. (3) Accion Interdictal - Action for Ejectment
Action quasi in rem - Action against a specific A summary action for recovery of actual,
property with respect to a person. material or de facto physical possession
An action to redeem, or to recover title to or through either an action for Forcible Entry or
possession of, real property is not an action in Unlawful Detainer.
rem or an action against the whole world, like
a land registration proceeding or the probate
of a will; it is an action in personam, so much Distinction between forcible entry and
so that a judgment therein is binding only unlawful detainer:
upon the parties properly impleaded and duly (1) Forcible Entry: Lawful possessor deprived
heard or given an opportunity to be heard. through FISTS:
[Ching v. CA (1990)]
Grounds: FISTS (Force, Intimidation,
Strategy, Threats, Stealth)
Prior physical possession must be alleged.
Prescription: 1 year from dispossession
(force, intimidation, threats) or from
knowledge of dispossession (strategy,
C.4. REMEDIES stealth).
DOCTRINE OF SELF-HELP [NCC 429-430]
The owner may use such force as may be (2) Unlawful Detainer: Possessor refused to
reasonably necessary to repel or prevent an vacate upon demand by owner.
actual or threatened unlawful physical
invasion or usurpation of his property.
Legal possession (by permission/ To justify the exercise of police power, the
tolerance) becomes unlawful upon failure following must appear [US v Toribio (1910)]:
to vacate.
(a) The interests of the public generally,
Prior physical possession must be alleged. require such interference (as
distinguished from those of a particular
Prescription of action: 1 year from last
class); and
notice to vacate.
(b) The means are reasonably necessary for
the accomplishment of a purpose, and
Movable property not unduly oppressive.
Replevin
For manual delivery of movable property, for TAXATION
either ownership or possession
Forced contribution to the operation of
Acquisitive Prescription of Right: 4 years government.
(good faith) or 8 years (bad faith)
EMINENT DOMAIN
Requisites for recovery of property [NCC 434]
Property taken for public use/purpose, but
(1) Property must be identified; subject to due process and payment of just
compensation.
If titled land, through a relocation survey and
a title properly identifying boundaries and Requisites
location and technical description.
To justify the exercise of the right of eminent
Plaintiff must rely on the strength of his title domain, the following requisites must all be
and not on weakness of defendant’s claim. present:
Right must be founded on positive title and (1) Private property or its use as the object of
not on lack or insufficiency of defendant’s. the expropriation;
Ei incumbit probatio qui dicit, non qui negat: (c) The property or its use is taken by the
“He who asserts, not he who denies must State or by competent authority;
prove.”
(d) The purpose of the taking is for public
use;
D. LIMITATIONS ON OWNERSHIP (e) The taking must be attended with due
process of law; and
(f) There is payment of just compensation.
D.1. GENERAL LIMITATIONS:
Taxation, eminent domain, police power
Note:
Expropriation may be exercised on both real
POLICE POWER
and personal property. [Rule 67, Rules of
PROPERTY TAKEN WITH NO Court]
COMPENSATION FOR GENERAL WELFARE
Expropriation may be exercised not only on
When any property is condemned or seized by property but also its use such as the use of
competent authority in the interest of health, telephone lines [Republic v PLDT (1969)]
safety or security, the owner thereof shall not
Eminent domain may be availed of to impose
be entitled to compensation, unless he can
only a burden upon the owner of the
show that such condemnation or seizure is
condemned property, without loss of title and
unjustified. [Art. 436, Civil Code]
possession.
Requisites
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Summary of Actions
Prior physical
Forcible Entry
In possession for
/ Real
persona Possession forcible entry; 1 year (2) MTC
Unlawful Action
m Notice to vacate for
Detainer
unlawful detainer
In 10 years
Accion Real Real right of
persona Possession (3) RTC
Publiciana Action Possession [NCC 555(4)]
m
GF: 10 years
BF: 30 years
[NCC 1137]
In Exception (i.e. no
Accion Real
persona Possession Ownership acquisitive (4) RTC
Reivindicatoria Action
m prescription):
Torrens Title and
property of public
dominion;
Exception to
exception: laches
If plaintiff in
possession,
imprescriptible
(6) RTC or
Quieting of Real Quasi-in Quieting
Ownership MTC (depending
Title Action rem of Title Otherwise, 10 years
on value)
(based on
constructive trust)
[Heirs of Jose Olviga
vs. CA (1993)]
In (7) RTC or
Personal Possession or GF: 4 years
Replevin persona Possession MTC (depending
Action Ownership BF: 8 years
m on value)
(i) Conjunction and Adjunction Standing trees are not fruits since they are
considered immovables although they
(ii) Commixtion and Confusion produce fruits themselves. However, they
(iii) Specification may be considered as industrial fruits when
they are cultivated or exploited to carry on
an industry, as in tree plantation.
(3) Civil – easily prorated for under NCC 544
GENERAL PRINCIPLES OF ACCESSION they are deemed to accrue daily and
(1) Accessio cedit principali - the accessory belong to the possessor in good faith in
follows the principal, and not the other that proportion (e.g. rents of buildings,
price of leases or lands and the amount
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Note: Good faith does not necessarily exclude negligence, which gives rise to damages under Article 2176
(NCC 456).
(2) Landowner builds, plants, or sows with materials of another
Right of OM:
(1) OM shall have the right to remove the
materials only if he can do so without
damage [NCC 447] at the expense of LO
[Tolentino on whether the owner can offer to
return the materials instead of paying their
value]
Absolute Rights of Landowner [NCC 447] Same as though both landowner and
Owner of material manare in good faith
(1) To appropriate the materials without
Material [OM]
payment.
in Bad Faith
(2) Right to damages from OM.
(3) Builder builds, plants, or sows on another's land with materials owner by a third person
Note: If there are 3 parties in BPS, solve the problem by considering the options open to the landowner
vis-à-vis BPS depending on their good faith or bad faith; apply NCC 455 re: one who acted in good faith.
(2) Confusion: mixture of liquid things, and material, in consequence of the work itself,
includes mixture of gases undergoes a transformation.
It is the transformation of another’s material
by the application of labor.
Rules
Examples: Turning grapes into wine, flour
(1) Mixture by will of the owners:
into bread
Primarily governed by their stipulations. In
Rules:
the absence of stipulation, each owner
acquires a right or interest in the mixture in (1) Person in good faith
proportion to the value of his material, i.e.
General rule: Worker becomes the owner but
co-ownership is created.
must indemnify the owner (who was also in
good faith) for the value of the material.
(1) Mixture caused by an owner in good faith Exception: If the material is more valuable
or by chance than the new thing, the owner of the
material may choose:
Share of each owner shall be proportional to
the value of the part that belonged to him. If (a) To take the new thing but must pay
things mixed are exactly the same kind, for the value of the work or labor; or
quality and quantity, divide the mixture
(b) To demand indemnity for the value
equally. If things mixed are of different kind
of the material.
or quality, a co-ownership arises. If they can
be separated without injury, the owners may If the owner was in bad faith, maker may
demand separation. Expenses are borne by appropriate the new thing without paying
the owners pro rata. the owner, or require the owner to pay him
the value of the thing or his work, with right
Note:
to indemnity.
Good faith in accession does not necessarily
exclude negligence, which gives rise to
damages. (2) Person in bad faith
General rule: Owner may either appropriate
the new thing to himself without paying the
(2) Mixture caused by an owner in bad faith
maker, or owner may demand value of
Actor forfeits the thing belonging to him. material plus damages
Actor also becomes liable for damages.
Exception: The first option is not available in
case the value of the work, for artistic or
scientific reasons, is considerably more than
(3) Mixture made with knowledge and
that of the material, in which case the owner
without objection of the other owner
of the material can ask for payment of
Rights to be determined as though both material and damages.
acted in good faith.
A cloud exists if: The plaintiff must have legal or equitable title
to, or interest in the real property [NCC 477]
(1) There is a claim emerging by reason of:
Legal title: the party is the registered owner
(a) Any instrument e.g. a contract, or any
of the property.
deed of conveyance, mortgage,
assignment, waiver, etc. covering the Equitable title: the person has the beneficial
property concerned; ownership of the property.
(b) Any record, claim, encumbrance e.g. an The plaintiff must return the benefits received
attachment, lien, inscription, adverse from the defendant [NCC 479]
claim, lis pendens, on a title; or
(c) Any proceeding e.g. an extrajudicial
partition of property. G. QUIETING OF TITLE V. REMOVAL OF
CLOUD
(2) The claim should appear valid or effective
and extraneous evidence is needed to Quieting of Preventing Removing of
prove their validity or invalidity; Title a Cloud Cloud
Note:
VI. Co-ownership
An action to quiet title may be defeated by a The form of ownership when the ownership of
claim of ordinary or extraordinary acquisitive an undivided thing or right belongs to
prescription by the defendant. different persons. [NCC 484]
The regime of co-ownership exists when the
ownership of an undivided thing or right
belongs to different persons. By the nature of
co-ownership, a co-owner cannot point to any
specific portion of the property owned in
common as his own because his share in it
remains intangible and ideal. (Avila v. Sps.
Barabat, G.R. No. 141993, March 17, 2006).
A. REQUISITES
(1) Plurality of owners;
(2) Object must be an undivided thing or
right; and
(3) Each co-owner’s right must be limited
only to his ideal or abstract share of
the physical whole.
C. CHARACTERISTICS OF CO-
OWNERSHIP
There are 2 or more co-owners.
There is a single object which is not
materially or physically divided and his ideal
share of the whole.
There is no mutual representation by the co-
owners.
It exists for the common enjoyment of the co-
owners.
It has no distinct legal personality.
It is governed first of all by the contract of the
parties; otherwise, by special legal provisions,
and in default of such provisions, by the
provisions of Title III on Co-Ownership.
There are ideal shares defined but not
physically identified [NCC 485]
D.1. LAW exceeding ten years, shall be valid. This term may
Cohabitation: co-ownership between be extended by a new agreement.
common law spouses A donor or testator may prohibit partition for a
The Family Code, in the following provisions, period which shall not exceed twenty years.
apply rules on co-ownership: Neither shall there be any partition when it is
Art. 147: between a man and a woman living prohibited by law.
together as husband and wife without the No prescription shall run in favor of a co-owner or
benefit of marriage but are capacitated to co-heir against his co-owners or co-heirs so long
marry each other, or under a void marriage as he expressly or impliedly recognizes the co-
Art. 148: between a man and a woman not ownership.
capacitated to marry each other
Art. 90: if matter is not provided in the FC By the creation of a Universal Partnership of
Chapter on ACP, then rules on co-ownership all present property
will apply
NCC 1778. A partnership of all present
property is that in which the partners
Purchase creating implied trust contribute all the property which actually
belongs to them to a common fund, with the
If two or more persons agree to purchase intention of dividing the same among
property and by common consent, the legal themselves, as well as all the profits which
title is taken in the name of one of them for they may acquire therewith.
the benefit of all, a trust is created by force of
law in favor of the others in proportion to the NCC 1779. In a universal partnership of all
interest of each. [NCC 1452] present property, the property which
belonged to each of the partners at the time
Easement of party wall: co-ownership of part- of the constitution of the partnership,
owners of a party wall [NCC 658] becomes the common property of all the
Condominium Law: co-ownership of the partners, as well as all the profits which they
common areas by holders of units may acquire therewith.
Sec. 6, RA 4726. The Condominium Act. A stipulation for the common enjoyment of
Unless otherwise expressly provided in the any other profits may also be made; but the
enabling or master deed or the declaration of property which the partners may acquire
restrictions, the incidents of a condominium subsequently by inheritance, legacy, or
grant are as follows: donation cannot be included in such
stipulation, except the fruits thereof
(c) Unless otherwise, provided, the common
areas are held in common by the holders
of units, in equal shares, one for each By Association and Societies with Secret
unit. Articles
NCC 1775. Associations and societies, whose
articles are kept secret among the members,
D.2. CONTRACT
and wherein any one of the members may
By Agreement of Two or More Persons contract in his own name with third persons,
shall have no juridical personality, and shall
Article 494, Civil Code. No co-owner shall be be governed by the provisions relating to co-
obliged to remain in the co-ownership. Each co- ownership.
owner may demand at any time the partition of
the thing owned in common, insofar as his share
is concerned.
Nevertheless, an agreement to keep the thing
undivided for a certain period of time, not
When the discovery is made on the property If a co-owner has paid taxes to prevent
of another, or of the State or any of its forfeiture of the common property for tax
subdivisions, and by chance, one-half shall be delinquency, he could compel contribution
allowed to the finder. [NCC 438] from his co-owners [PARAS].
No waiver if it is prejudicial to the co-
ownership
Note:
D.6. BY OCCUPANCY
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Renunciation needs the consent of other co- (2) When the donor or testator imposes a
owners as this is akin to a dacion en pago condition of indivision, but must not
[J.B.L. Reyes] exceed 20 years [NCC 494].
(3) When the legal nature of the
community prevents partition.
E.5. RIGHT TO REPAIR [NCC 489]
(4) When partition would render the
Repairs for preservation may be made at the
thing unserviceable [NCC 495].
will of one of the co-owners but he must first
notify his co-owners if practicable. (5) When partition is prohibited by law
[NCC 494].
Expenses to improve or embellish, decided
upon by a majority.
An agreement to keep the thing undivided for
a certain period not exceeding 10 years is
E.6. RIGHT TO OPPOSE ALTERATIONS
valid.
Consent of all the others is needed to make
Term may be extended by a new agreement.
alterations, even if the alteration benefits all.
[NCC 491] Donor or testator may prohibit partition,
period not to exceed 20 years.
If the withholding of the consent is clearly
prejudicial to the common interest, the courts
may afford relief
E.9. RIGHT TO REDEMPTION [NCC 1619]
Reason for the rule: alteration is an act of
May exercise this in case the shares of other
ownership, not of mere administration.
co-owners are sold to a third person
If 2 or more co-owners wish to exercise this
E.7. RIGHT TO FULL OWNERSHIP OF HIS right, redemption will be made in proportion
PART AND OF THE FRUITS AND BENEFITS to their share in the thing
PERTAINING THERETO [NCC 493]
Therefore he may alienate, assign or
E. 10. RIGHT TO PROTEST AGAINST ACTS
mortgage it, and even substitute another
OF MAJORITY WHICH ARE PREJUDICIAL
person in its enjoyment except when personal
TO MINORITY [NCC 492(3)]
rights are involved.
Should the resolution of the majority be
The effect of the alienation or the mortgage,
seriously prejudicial to those interested in the
with respect to the co-owners, shall be
property owned in common:
limited to the portion which may be allotted
to him in the division upon the termination of The court, at the instance of an interested
the co-ownership. party, shall order such measures as it may
deem proper, including the appointment of
an administrator.
E.8. RIGHT TO PARTITION
General Rule: Each may demand at any time
Note:
the partition of the thing, insofar as his share
is concerned, and as long as the co- Rules on Co-Ownership do not apply to CPG
ownership lasts or is recognized or ACP. These are governed by the Family
Code. Even void marriages and cohabitation
Exceptions to the right to demand partition at
of incapacitated persons are governed by FC
any time:
50, 147, and 148.
(1) When there is stipulation prohibiting
it, but must not exceed 10 years [NCC
494].
G. RULES
Decisions by the majority must be followed.
Act of Co-Owner Consent Needed
G.1. ON RENUNCIATION OF SHARE
(DIFFERENT FROM RENUNCIATION OF Preservation May be made at will
CO-OWNERSHIP) by any co-owner but
must first notify
Other co-owners may choose not to other co-owners if
contribute to the expenses by renouncing so practicable
much of his undivided interest as may be
equivalent to his share of the necessary Alterations Consensus of
expenses and taxes. Majority
Renunciation must be express; thus, failure Lease for more than 1 Consensus of
to pay is nota renunciation of the right. year Majority
Requires the consent of other co-owners Acts of administration Majority of co-
because it is a case of dacion en pago owners
(cessation of rights) involving expenses and
Improvement/ Majority of co-
taxes already paid. [J.B.L. Reyes]
Embellishing the owners
Cannot renounce his share if it will be Thing/ Useful
prejudicial to another co-owner. expenses
VII. Possession
Intervention of creditors and assignees The holding of a thing or the enjoyment of a
General Rule: Creditors may take part in the right. [NCC 523]
division. They need to establish the existence
of the credit during co-ownership.
A. CONCEPT OF POSSESSION
Exception: If the partition was already
executed, they cannot impugn partitiion To possess, in a grammatical sense, means to
have, to physically and actually occupy a
Exception to the exception: If there was fraud, thing, with or without right. [Sanchez Roman]
or a previous formal opposition to prevent the
partition, without prejudice to right of It is the holding of a thing or a right, whether
debtor/assignor to maintain its validity. by material occupation or by the fact that the
thing or the right is subjected to the action of
our will. [Manresa]
Rules on notice to creditors and assignees: Possession includes the idea of occupation. It
(1) The law does not expressly require cannot exist without it.
previous notice to the creditors and Exceptions: Acts merely tolerated, and those
assignees before a partition, but the latter executed clandestinely and without the
have the right of creditors and assignees knowledge of the possessor of a thing, or by
to take part in the division. violence, do not affect possession. [NCC 537]
(2) If notice is not given, the partition may be Right of possession Right to possess
impugned by creditor/assignee if made in
fraud of creditors. (jus possessionis) (jus possidendi)
(3) Once notice has been given, it is the duty Independent right Incident to
of creditors and assignees to intervene ownership
and make known their stand.
(a) If they fail, they cannot question the Possession is not a definitive proof of
division made, except in cases of fraud. ownership nor is non-possession inconsistent
(b) If they formulate a formal question, therewith [Heirs of G. Bofill v. CA, G.R. No.
they can contest such partition 107930, October 7, 1994].
Possession in the eyes of the law does not Period of acquisitive prescription will depend
mean that a man has to have his feet on every upon good/bad faith of possessor.
square merer of ground before it can be said
Possessor is a possession in the concept of
he is in possession (Ramos v. Director of
owner.
Lands, G.R. No. 13298, November 19, 1918).
Note:
(4) (Dominium) Possession with a just title
To apply the doctrine, intention to possess
from the true owner
must be proved.
This is possession that springs from
ownership.
Animus possidendi: Intention to possess
Actually, jus possidendi not just jus
There is no possession if the holder does not possessionis.
want to exercise the rights of a possessor.
Highest form of possession
Implied from the acts of the possessor.
May be contradicted and rebutted by
evidence – to prove that the person who is in D. CLASSES OF POSSESSION
possession does not in fact exercise power or
control and does not intend to do so.
D.1. POSSESSION FOR ONESELF, OR
POSSESSION EXERCISED IN ONE’S OWN
NAME AND POSSESSION IN THE NAME OF
C. DEGREES OF POSSESSION
ANOTHER [NCC 524]
(1) Grammatical degree - Mere holding or
In one’s own name – the fact of possession
possession without title and in violation of
and the right to such possession is found in
the right of the owner
the same person.
e.g. Possession of a thief or usurper of land
In the name of another – the one in actual
Here, both the possessor and the public know possession is without any right of his own, but
that the possession is wrongful. is merely an instrument of another in the
exercise of the latter’s possession.
donations propter nuptias, pure and court, if holder refuses to deliver the thing
simple donations. (NCC 536).
At the time good faith possession ceases, No right to reimbursement for useful
he has the right to a part of cultivation improvements and no limited right of
expenses and to a part of net fruits in removal.
proportion to time of possession (NCC.
545)
G.4. OBLIGATIONS OF A POSSESSOR IN
(4) Right to necessary expenses; (NCC. 546)
BAD FAITH
(5) Right to retain the thing until reimbursed;
Reimburse the value of fruits received and
(NCC. 546)
which the legitimate possessor could receive;
(6) Right to remove useful improvements (NCC 549)
removable without damage to the
Pay in proportion to the charges, expenses of
principal thing or to refund its value;
cultivation and the net proceeds upon
(upon election by the owner) (NCC. 547)
cessation of good faith; (NCC 545)
(7) Right to recover removable ornaments
Costs of litigation; (NCC 550)
unless owner opts to buy them (NCC. 548)
Liability to the deterioration/loss of a thing
possessed in every case, including fortuitous
G.2. OBLIGATIONS OF A POSSESSOR IN events. (NCC 552)
GOOD FAITH
Pay in proportion to the charges, expenses of
G.5. RIGHT TO BE PROTECTED IN HIS
cultivation and the net proceeds upon
cessation of good faith; (NCC 545) POSSESSION [NCC 539]
The owner of the thing may give the Every possessor has a right to be respected in
possessor in good faith the right to finish the his possession; if disturbed, possessor has a
cultivation and gathering of the growing right to be protected in or restored to said
fruits, as an indemnity for his part of the possession.
expenses of cultivation and the net proceeds.
“Every possessor” includes all kinds of
The possessor in good faith who refuses to
possession, from that of an owner to that of a
accept this concession shall lose the right to
mere holder, except that which constitutes a
be indemnified in any other manner.
crime
Costs of litigation; (NCC 550) Reason for the rule: To prevent anyone from
Liability to the deterioration/loss of a thing taking the administration of justice into his
possessed if acted through fraudulent own hands. Even the owner cannot forcibly
intent/negligence after the judicial summons. eject the possessor, but must resort to the
(NCC 552) courts.
(a) Possession of real property presumes The expenses are not considered
possession of the movables therein improvements; they do not increase the value
[NCC 542]. of the thing, but merely prevent them from
becoming useless.
(b) Each co-owner is deemed to have
exclusive possession of the part which A possessor in bad faith is entitled to
may be allotted to him upon the reimbursement for necessary expenses but
division, for the entire period during without right of retention.
which the co-possession lasted.
Interruption in the possession of the whole or
H.2. USEFUL EXPENSES
a part of a thing possessed in common shall
be to the prejudice of all the possessors. [NCC Incurred to give greater utility or productivity
543]. to the thing, e.g. Wall surrounding an estate,
an irrigation system, planting in an
uncultivated land, a fishpond, an elevator in
RULES ON CO-POSSESSION the building, electric lighting system
(a) For the entire period that the co- They are reimbursed only to the possessor in
possession lasted, each one of the GF as a compensation or reward for him. A
participants of a thing possessed in possessor in BF cannot recover such
common shall be deemed to have expenses.
exclusively possessed the part
If the useful improvements can be removed
allotted to him upon division thereof
without damage to the principal thing, the
[NCC 543]
possessor in good faith may remove them,
(b) Interruption in the possession of the unless the person who recovers the
whole or a part of the thing possession refunds the expenses or pays the
possessed in common shall be to the increase in value which the thing may have
prejudice of all possessors [Ibid]. acquired by reason thereof.
(c) In case of civil interruption, Rules of Bad faith possessor has no limited right of
Court applies [Ibid]. removal.
Note: Civil interruption
When interruption is produced by judicial H.3. EXPENSES FOR LUXURY
summons to the possessor, and only those
They do not affect the existence or the
possessors served with judicial summons are
substance of the thing itself, but only the
affected [DE LEON].
comfort, convenience or enjoyment of the
possessor.
H. REIMBURSEMENT FOR EXPENSES – They are not the subject of reimbursement,
POSSESSOR IN GOOD/BAD FAITH because the law does not compensate
[NCC 546-552] personal whims or caprices, e.g. Opening of a
garden, placing fountains and statues in it,
adorning the ceilings with paintings, and the
H.1. NECESSARY EXPENSES walls with reliefs.
Imposed by the thing itself for its preservation Bad faith possessor has no right of
and has no relation to the desire or purpose reimbursement but has limited right of
of the possessor. removal, where owner has the option to buy
removable ornament.
They are the “cost of living” for the thing and
must be reimbursed to the one who paid
them, irrespective of GF or BF. Notes
Only the possessor in GF may retain the thing Costs of litigation over the property shall be
until he has been reimbursed therefor. borne by every possessor. [NCC 550]
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Charges
Necessary Expenses
Right to
Reimbursement only
reimbursement and
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(3) Putative Title – title of a person who Of continuity of initial good faith in which
belives himself to be the owner, but is not possession was commenced; possession in
because there was no mode of acquiring good faith does not lose this character except
ownership in case and from the moment possessor
became aware or is not unaware of improper
Just title: that which is legally sufficient to
or wrongful possession [NCC 528]
transfer the ownership or the real right to
which it relates.
For the purposes of prescription, there is just Good faith ceases from the date of the
title when the adverse claimant came into summons to appear at the trial if
possession of the property through one of the defendant/possessor loses the case. [Cordero
modes recognized by law for the acquisition v Cabral (1983)]
of ownership or other real rights, but the
Good faith ceases when there is:
grantor was not the owner or could not
transmit any right. [NCC 1129] (a) Extraneous evidence; or
Exception: For the purposes of prescription, (b) A suit for recovery of the property by the
just title must be proved; it is never true owner.
presumed. [NCC 1131]
Of enjoyment of possession in the same
Possessor may bring all actions necessary to character in which possession was acquired
protect his possession except accion until the contrary is proved [NCC 529]
reivindicatoria.
Of non-interruption of possession in favor of
May employ self-help under Art. 429. present possessor who proves possession at a
previous time until the contrary is proved
Possessor may ask for inscription of such real
[NCC 554]
right of possession in the registry of property.
Possession is interrupted for the purposes of
Has right to the fruits and reimbursement of
prescription, naturally or civilly. [NCC 1120]
expenses (assuming he is possessor in good
faith) Possession is naturally interrupted when
through any cause it should cease for more
Upon recovery of possession which he was
than one year [NCC 1121]
unlawfully deprived of, may demand fruits
and damages. Old possession is not revived if a new
possession should be exercised by the same
Generally, he can do on the things possessed
adverse claimant [NCC 1121]
everything that the law authorizes the owner
to do until he is ousted by one who has a If the natural interruption is for only one year
better right. or less, the time elapsed shall be counted in
favor of the prescription [NCC 1122]
This is whether possession is in good faith or
in bad faith [NCC. 528] Civil interruption is produced by judicial
summons to the possessor. [NCC 1123]
Judicial summons shall be deemed not to
Presumption in favor of the possessor — for
have been issued and shall not give rise to
acquisitive prescription
interruption [NCC 1124]:
Of good faith until contrary is proved
(a) If it should be void for lack of legal
Presumption is only juris tantum because solemnities;
possession is the outward sign of ownership.
(b) If the plaintiff should desist from the
Unless such proof of bad faith is presented,
complaint or should allow the
the possessor will be held to be in good faith.
proceedings to lapse;
[NCC 527]
(c) If the possessor should be absolved from
So long as the possessor is not actually aware
the complaint
of any defect invalidating his title, he is
deemed a possessor in good faith.
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In all these cases, the period of the which the person may have in a thing, with
interruption shall be counted for the intent to lose such a thing. To be effective, it
prescription is necessary that it be made by a possessor in
the concept of an owner.
Non-interruption of possession of property
unjustly lost but legally recovered [NCC. 561] It must clearly appear that the spes
recuperandi is gone and the animus revertendi
is finally given up.
Other presumptions with respect to specific
properties of property rights
K.2. ASSIGNMENT, EITHER GRATUITOUS
(1) Of extension of possession of real property
OR ONEROUS
to all movables contained therein so long
as in is not shown that they should be Complete transmission of ownership rights to
excluded [NCC 542] another person, gratuitously or onerously.
Non-interruption of possession of hereditary
property [NCC 553]
K.3. POSSESSION BY ANOTHER
(a) Possession of hereditary property is
Acts merely tolerated, and those executed
deemed transmitted to the heir without
clandestinely and without the knowledge of
interruption and from the moment of
the possessor of a thing, or by violence, do
the death of the decedent
not affect possession.
Of just title in favor of possessor in concept of
Possession that is lost here refers only to
owner [NCC 541]
possession as a fact (de facto), not the legal
Exclusive Possession of Common Property right of possession (de jure). It is the
[NCC. 543] possession that the new possessor acquires.
Present possessor may tack his possession to Real right of possession is lost only after 10
that of his grantor or predecessor in interest years.
[NCC 1138 (1)]
After 1 year, the actions for forcible entry and
unlawful detainer can no longer be brought.
But accion publiciana may still be instituted
K. LOSS/TERMINATION OF to recover possession de jure.
POSSESSION [NCC 555]
ACTS NOT CONSTITUTING LOSS OF
(1) By the abandonment of the thing; POSSESSION [NCC 537-538]
(2) By an assignment made to another either (1) Acts executed by stealth and wthout
by onerous or gratuitous title; knowledge of the possessor;
(3) By the destruction or total loss of the (2) Acts merely tolerated either by the
thing, or because it goes out of possessor or by his representative or
commerce; holder in his name unless authorized or
(4) By the possession of another, subject to ratified;
the provisions of Art. 537, if the new (3) Violence; and
possession has lasted longer than 1 year.
But the real right of possession is not lost (4) Temporary ignorance of the whereabouts
till after the lapse of 10 years. of the movable property.
(3) If by testamentary succession, there must Example: Usufruct over sterile animals [NCC
be only 2 successive usufructuaries, and 591, par. 4].
both must be alive or at least already
conceived at the time of the testator’s
iv. Quasi-usufruct [NCC 574; Bar 1998]
death and later born alive. [NCC 869]
Includes things which cannot be used without
being consumed.
C.3. BY OBJECT OF USUFRUCT
Money may be the object of usufruct. [Alunan
Usufruct may be constituted on the whole or v. Veloso, 52 Phil 545]
a part of the fruits of the thing or on a right,
provided it is not strictly personal or
intransmissible. [NCC 564]
i. Rights C.4. BY THE EXTENT OF THE USUFRUCT
Fruits pending at the Fruits pending at the Right to enjoy any increase through
beginning of the termination of the accessions and servitudes, including products
usufruct usufruct of hunting and fishing.
If the usufruct is constituted only on the land (3) A lease executed by the usufructuary
and not the building built thereon then the before the termination of the usufruct
right to the fruits by the usufructuary would and subsisting after the termination of
not extend to the building. The building is the usufruct must be respected, but the
considered as a separate and distinct rents for the remaining period will belong
prinicipal which produces its own fruits. to the owner.
[Gabuya v Cui (1971)] (4) If the usufructuary has leased the lands
or tenements given in usufruct, and the
usufruct should expire before the
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termination of the lease, he or his heirs which the things in usufruct may suffer
and successors shall receive only the through the fault or negligence of the person
proportionate share of the rent that must who substitutes him. [NCC, 590]
be paid by the lessee. [NCC, 568]
A usufructuary can sell or alienate his right of
(5) It is the usufructuary and not the naked usufruct, apart from the thing held in
owner who has the right to choose the usufruct, but the right of usufruct remains a
tenant. temporary real right.
(6) As corollary to the right of the
usufructuary to all the rent, to choose the
iv. Improvements by the Usufructuary of the
tenant, and to fix the amount of the rent,
Land [NCC 579]
she necessarily has the right to choose
herself as the tenant thereof; and, as long He may improve the thing without altering its
as the obligations she had assumed form and substance;
towards the owner are fulfilled. [Fabie v.
He may remove improvements made by him if
Gutierrez David (1945)]
it is possible to do so without damage to
(7) A lease executed by the owner before the property
creation of the usufruct is not
extinguished by such usufruct.
v. Usufructuary May Set Off Improvements
Limitations on the Right to Lease the Property
[NCC 580]
General rule: Usufructuary cannot do the
(1) The usufructuary may set off the
following:
improvements he may have made on the
(1) Cannot alienate or dispose of the objects property against any damage to the
included in the usufruct; same.
(2) Cannot renounce a servitude; Right to improve the thing, but
improvement inures to the benefit of the
(3) Cannot mortgage or pledge a thing.
naked owner [NCC 579]
Exception:
Usufructuary is not entitled to
(1) When the right of usufruct is converted reimbursement.
into the right of ownership;
(2) Whenever the usufructuary can remove
(2) When the things are consumable (NCC the improvements without injury to the
574); property in usufruct, he has the right to
do so, and the owner cannot prevent him
(3) When the things by their nature are
from doing so even upon payment of their
intended for sale, such as the
value.
merchandise in a commercial
establishment; and This right does not involve an obligation –
if the usufructuary does not wish to
(4) When the things, whatever their nature,
exercise it, he cannot be compelled by the
are delivered under appraisal as
owner to remove the improvements.
equivalent to their sale.
This right to remove improvements can
Notes:
be enforced only against the owner, not
Future crops may be sold but such sale would against a purchaser in good faith to
be void if usufruct terminates prior to harvest whom a clean title has been issued.
of future fruits. The buyer’s remedy is to
(3) Usufructuary may set off the
recover from the usufructuary.
improvements against any damage to the
The usufructuary-lessor is liable for the act of property.
the substitute.
The improvements should have increased
A usufructuary who alienates or leases his the value of the property, and that the
right of usufruct shall answer for any damage
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(3) Gratitude on the donee’s part demands The owner may, until the usufructuary gives
that the donor be excused from filing the security, retain in his possession the property
bond. in usufruct as administrator, subject to the
obligation to deliver to the usufructuary the
(4) Title constituting usufruct excused
net proceeds, after deducting the sums,
usufructuary.
which may be agreed upon or judicially
(5) A usufructuary may take possession allowed him for such administration.
under a caucion juratoria (bond by oath)
[Art. 587]
D.4. OBLIGATIONS DURING THE
Note:
USUFRUCT
It is only by way of exception that a caucion
(1) To take care of the thing like a good
juratoria is allowed, and only under the
father of a family;
special circumstances:
(2) To undertake ordinary repairs;
(1) Proper court petition;
(3) To notify owner of need to undertake
(2) Usufruct is over a house, furniture or tools
extraordinary repairs;
of a trade and the necessity for delivery of
furniture, implements or house included (4) To pay for annual charges and taxes on
in the usufruct; the fruits;
(3) Approval of the court; and (5) To notify owner of any act detrimental to
ownership;
(4) Sworn promise.
(6) To shoulder the costs of litigation
A usufructuary under this can neither alienate
regarding the usufruct; and
his right nor lease the property, for that
would mean that he does not need the (7) To answer for fault or negligence of
dwelling or the implements and furniture. alienee, lessee or agent of usufructuary.
i. To take care of the thing like a good father of
a family
Effect of filing a bond
When damages are caused to the property by
Retroactivity: upon giving the security, the
the fault or negligence of the usufructuary,
usufructuary will be entitled to all the
the naked owner need not wait for the
benefits accruing since the time when he
termination of the usufruct before bringing
should have begun to receive them.
the action to recover proper indemnity.
The bad use of a thing, which causes
Effect of failure to give bond: [NCC 586] considerable injury, entitles the naked owner
to demand the delivery and administration of
(1) The owner may demand that the
the thing.
immovable properties be placed under
administration; The exercise of this remedy does not
extinguish the usufruct.
(2) That the movable properties be sold and
the proceeds of the sale be the property He may set off the value of useful
held in usufruct – legal interest of 6% improvements against his liability for
shall be the fruits; damages (NCC 580).
(3) That the public bonds, instruments of ii. To undertake ordinary repairs
credit payable to order or to bearer be
The usufructuary is obliged to make the
converted into registered certificates or
ordinary repairs needed by the thing given in
deposited in a bank or public institution;
usufruct. [NCC 592]
and
Ordinary repairs:
(4) That the capital or sums in cash and the
proceeds of the sale of the movable
property be invested in safe securities.
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(1) Such as are required by the wear and tear (2) The naked owner failed to make them;
due to the natural use of the thing and and
are indispensable for its preservation;
(3) The repair is needed for preservation.
(2) Deteriorations or defects arise from the
The usufructuary who has made the
natural use of the thing;
extraordinary repairs necessary for
(3) Repairs are necessary for the preservation preservation is entitled to recover from the
of the thing. owner the increase in value, which the
tenement acquired by reason of such works.
The usufructuary is bound to pay only for the
repairs made during the existence of the Usufructuary may retain, i.e. has a right of
usufruct. retention, until he is paid.
If the defects existed already at the time the
usufruct began, the obligation to defray the
iv. To pay for annual charges and taxes on the
ordinary repairs falls upon the owner.
fruits
If the defects are caused by the ordinary use
It is well settled that a real tax, being a
of the thing, the usufructuary may exempt
burden upon the capital, should be paid by
himself from making the repairs by returning
the owner of the land and not by a
to the owner the fruits received during the
usufructuary. There is no merit in the
time that the defects took place.
contention of distinguishing public lands into
Exception: When the ordinary repairs are due alienable and indisposable. All properties
to defects caused by the fault of the owned by the government, without any
usufructuary distinction, are exempt from taxation. [Board
of Assessment Appeals of Zamboanga del Sur
If the usufructuary fails to make the repairs
v. Samar Mining Company, Inc.(1971)]
even after demand, the owner may make
them at the expense of the usufructuary v. To notify owner of any act detrimental to
ownership [NCC 601]
iii. To notify owner of need to undertake
extraordinary repairs
Extraordinary repairs vi. To shoulder the costs of litigation regarding
the usufruct [NCC 602]
(1) Those caused by exceptional
circumstances, whether or not they are
necessary for the preservation of the
vii. To answer for fault or negligence of the
thing; or
alienee, lessee or agent of the usufructuary
(2) Those caused by the natural use of the [NCC 590]
thing, but are not necessary for its
The usufructuary is made liable for the acts of
preservation.
the substitute. While the substitute answers
General Rule: Naked owner must make the to the usufructuary, the usufructuary answers
extraordinary repairs. to the naked owner.
The usufructuary is obliged to pay legal
interest on the amount while usufruct lasts.
D.5. AT THE TIME OF THE TERMINATION
Exception: If the extraordinary repairs are OF THE USUFRUCT
indispensable, and the naked owner fails to
To deliver the thing in usufruct to the owner
undertake them, the usufructuary may make
in the condition in which he has received it,
such repairs.
after undertaking ordinary repairs.
Requisites:
Exception: Abnormal usufruct: A thing of the
(1) There must be due notification to the same kind, quantity and quality is returned; if
naked owner of the urgency – if it is not with appraised value, must return value
urgent, there is no obligation to give appraised.
notice;
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The usufructuary shall have the right to make (3) He may construct buildings, make
use thereof in accordance with the purpose improvements and plantings, provided:
for which they are intended. (4) The value of the usufruct is not impaired;
and
(5) The rights of the usufructuary are not If the period is fixed by reference to the life of
prejudiced. another or there is a resolutory condition,
death does not affect the usufruct and the
(6) He can constitute a voluntary easement
right is transmitted to the heirs of the
over land/building held in usufruct, but if
usufructuary until the expiration of the term
it affects the usufructuary right, the
or the fulfillment of the condition.
usufruct mas give his consent. If
easement is perpetual, consent of both
must be obtained (NCC 689-690)
When a contrary intention clearly appears:
If the usufructuary dies before the happening
G. EXTINGUISHMENT/ TERMINATION of a resolutory condition, the usufruct is
[NCC 603] extinguished.
(1) By the death of the usufructuary, unless a Usufruct is personal and it cannot be
contrary intention clearly appears; extended beyond the lifetime of the
usufructuary. [Sanchez Roman and SC]
(2) By the expiration of the period for which it
was constituted, or by the fulfillment of If period is fixed with reference to the age of a
any resolutory condition provided in the third person usufruct continues until such
title creating the usufruct; person attains that age, even if he dies
before reaching such age, unless expressly
(3) By merger of the usufruct and ownership granted in consideration of his existence in
in the same person; life [NCC 606]
(4) By renunciation of the usufructuary;
(5) By the total loss of the thing in usufruct; G.2. EXPIRATION OF PERIOD OR
(6) By the termination of the right of the FULFILLMENT OF RESOLUTORY
person constituting the usufruct; or CONDITION IMPOSED ON USUFRUCT BY
PERSON CONSTITUTING USUFRUCT
(7) By prescription.
In favor of juridical persons [NCC. 605]
Usufruct cannot be constituted in favor of a
G.1. DEATH OF USUFRUCTUARY town, corporation, or association for more
Exceptions: than fifty years.
(1) In multiple usufructs: it ends at the death If before the expiration of such period the
of the last survivor [NCC 611] town is abandoned, or the corporation or
association is dissolved, the usufruct shall be
(2) If a simultaneous usufruct: all the extinguished.
usufructuaries must be alive (or at least
conceived and born alive later) at the Usufruct granted for the time that may elapse
time of constitution. before a third person attains a certain age
[NCC 606]
(3) If successive usufruct:
It shall subsist for the number of years
If by virtue of donation – all the donees- specified even if the third person should die
usufructuaries must be living at the time of before the period expires unless such usufruct
the donation; has been expressly granted only in
If by will – there should only be 2 successive consideration of the existence of such person.
usufructuaries and both must have been alive
at the time of testator’s death.
G.3. MERGER OF RIGHTS OF USUFRUCT
AND NAKED OWNERSHIP IN ONE PERSON
Note: Same rule as in fideicommissary Illustration: H was the usufructuary of land
substitution [NCC 863-867, par. 1] owned by X. X dies, leaving in his will, the
naked ownership of the land to H. the
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(1) Must be express: tacit renunciation is not When the insurance Owner entitled to
sufficient; taken by the naked insurance money (no
owner only because interest paid to
(2) Does not need the consent of naked
usufructuary refuses usufructuary).
owner; and
to contribute to the
If he does not rebuild,
(3) If made in fraud of creditors, they may premium (par. 2)
usufruct continues
rescind the waiver through an action
over remaining land
under Article 1381 (accion pauliana).
and/or owner may
pay interest on value
of both materials and
G.5. EXTINCTION OR LOSS OF PROPERTY
land [Art. 607].
[NCC 608]
If owner rebuilds,
Situation Effect usufruct does not
continue on new
Art. 607
building, but owner
If destroyed property is not insured must pay interest on
value of land and old
If the building forms Usufruct continues materials.
part of an immovable over the land and
under usufruct materials (plus When insurance taken Insurance proceeds
interests), if owner by usufructuary only go to the
does not rebuild. depends on value of usufructuary.
usufructuary’s
If usufruct is on the Usufruct continues No obligation to
insurable interest
building only over the land and rebuild.
materials (plus Usufruct continues on
interests), if owner the land.
does not rebuild.
Owner has no share in
If owner rebuilds, insurance proceeds.
usufructuary must
allow owner to occupy
the land and to make G.6. TERMINATION OF THE RIGHT OF
use of materials; but PERSON CONSTITUTING THE USUFRUCT
the owner must pay
interest on the value Example: usufructs constituted by a vendee a
of both the land and retro terminate upon redemption.
the materials.
iv. It is a right constituted over an immovable Right to use another’s wall to support a
by nature (land and buildings), not over building.
movable properties or even immovable by
incorporation, by destination or by analogy.
[NCC. 613] vii. It is inherent or inseparable from estate to
which they actively or passively belong. [NCC
Immovable: used in its common and not in
617]
the legal sense, meaning only property
immovable by nature can have easements. Easements are merely accessory to the
tenements, and a “quality thereof.” They
They cannot be established on things beyond
cannot exist without tenements.
the commerce of man, (i.e. property of public
dominion). Easements exist even if they are not expressly
stated or annotated as an encumbrance on
the titles.
v. It limits the servient owner’s right of
ownership for the benefit of the dominant
estate. viii. It is intransmissible.
Right of limited use but no right to own and It cannot be alienated separately from the
possess the servient estate. tenement affected or benefited.
There exists a limitation on ownership: the Any alienation of the property covered carries
dominant owner is allowed to enjoy or use with it the servitudes affecting said property.
part of the servient estate, and owner of the But this affects only the portion of the
servient estate is restricted in his enjoyment tenement with the easement, meaning that
of his property. the portions unaffected can be alienated
without the servitude.
Being an abnormal limitation of ownership, it
cannot be presumed [DE LEON, Property,
478-479].
ix. It is indivisible. [NCC 618]
If the servient estate is divided between two
vi. It creates a relation between tenements. or more persons, the easement is not
modified, and each of them must bear it on
There is no transfer of ownership, but a
the part that corresponds to him.
relationship is created, depending on the type
of easement. If the dominant estate is divided between two
or more persons, each of them may use the
easement in its entirety, without changing
General Rule: It may consist in the owner of the place of its use, or making it more
the dominant estate demanding that the burdensome in any other way.
owner of the servient estate refrain from
doing something (servitus in non faciendo) or
that the latter permit that something be done x. It has permanence because once it
over the servient property (servitus in attaches, whether used or not, it continues
patendo), but not in the right to demand that and may be used anytime
the owner of the servient do something
Perpetual: exists as long as property exists,
(servitus in faciendo) except if such act is an
unless it is extinguished.
accessory obligation to a praedial servitude
(obligation propter rem)
Servient owner merely allows something to
be done to his estate. Easement Distinguished from Lease
Exception: Praedial servitudes
Easement Lease
Right to place beams in an adjoining wall to
support a structure. Real right, whether Real right only when
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i. Apparent: Made known and continually iii. Mixed: created partly by will or agreement
kept in view by external signs that reveal the and partly by law.
use and enjoyment of the same.
ii. Non-apparent: No external indication of
Note:
their existence.
There is no such thing as a JUDICIAL
EASEMENT. The Courts cannot create
Note: Also important for purposes of easements, they can only declare the
prescription. existence of one, if it exists by virtue of the
law or will of the parties. [Castro v. Monsod,
February 2, 2011]
C.4. BY THE OBJECT OR OBLIGATION
IMPOSED [NCC 616]
i. Positive: Imposes upon the owner of the D. RELEVANCE OF CLASSIFICATIONS
servient estate the obligation of allowing
something to be done, or extraordinarily or
doing it himself. D.1. DETERMINES WHAT EASEMENTS CAN
BE ACQUIRED BY PRESCRIPTION
ii. Negative: Prohibits the owner of the
servient estate from doing something that he Continuous and apparent easements may be
could lawfully do if the easement did not acquired by prescription of 10 years [NCC.
exist. 620]
Example: Natural drainage of waters, Unless, at the time the ownership of the two
Abutment of land, Aqueduct, etc. estates is divided, the contrary should be
provided in the title of conveyance of either of
them, or the apparent sign should be
ii. Voluntary: created by the will of the owners removed before the execution of the deed.
of the estate through contract, last will or This provision shall also apply in case of the
donation. division of a thing owned in common by two
or more persons. [NCC. 624]
These must be recorded in the Registry of
Property to prejudice third persons.
D.3. DETERMINES HOW TO COMPUTE THE
PRESCRIPTIVE PERIOD [NCC 621]
In positive easements, from the day on which title of conveyance of either of them, or
the owner of the dominant estate, or the the sign aforesaid should be removed
person who may have made use of the before the execution of the deed. This
easement, commenced to exercise it upon the provision shall also apply in case of the
servient estate. division of a thing owned in common by
two or more persons. [NCC 624]
In negative easements, from the day on which
the owner of the dominant estate forbade, by (5) If the easement has been acquired but no
an instrument acknowledged before a notary proof of existence of easement available,
public, the owner of the servient estate from and the easement is one that cannot be
executing an act which would be lawful acquired by prescription, the defect may
without the easement. be cured by:
Deed of recognition by owner of servient
estate: By an affidavit or a formal deed
D.4. DETERMINES HOW EASEMENT IS
acknowledging the servitude; or
LOST BY PRESCRIPTION [NCC 631 (2)]
By final judgment: Owner of the dominant
By non-user for 10 years:
estate must file a case in Court to have the
With respect to discontinuous easements, easement declared by proving its existence
this period shall be computed from the day through other evidence.
on which they ceased to be used.
The existence of an apparent sign is
With respect to continuous easements, from considered as title.
the day on which an act contrary to the same
Illustration: The presence of 4 windows was
took place.
considered an apparent sign that created a
negative easement of light and view (altius
non tollendi) i.e. not to build a structure that
E. CREATION will cover the windows. [Amor v. Florentino
(1943)].
E.1. BY TITLE OR BY SOMETHING
EQUIVALENT TO A TITLE E.2. BY LAW (LEGAL EASEMENTS)
(1) Continuous and apparent easements may
Easements imposed by law have for their
be acquired by virtue of a title. [NCC 620]
object either public use or the interest of
(2) Continuous non-apparent easements, private persons. [NCC 634]
and discontinuous ones, whether
These easements may be modified by
apparent or not, are acquired only by
agreement of the interested parties,
virtue of a title. [NCC 622]
whenever the law does not prohibit it or no
(3) The absence of a document or proof injury is suffered by a third person. [NCC 636]
showing the origin of an easement which
cannot be acquired by prescription may
be cured by a deed of recognition by the E.3. BY WILL OF THE OWNERS
owner of the servient estate or by a final (VOLUNTARY EASEMENTS)
judgment. [NCC 623] Every owner of a tenement or a piece of land
(4) The existence of an apparent sign of may establish the easements that he may
easement between two estates, deem suitable and best provided he does not
established or maintained by the owner contravene the laws, public policy, or public
of both, shall be considered as a title in order. [NCC 688]
order that the easement may continue Note:
actively and passively.
If an owner constitutes an easement over his
Unless: at the time the ownership of own property and makes such easement
either of the two estates is transferred, available to the general public, said owner
the contrary should be provided in the may not arbitrarily discriminate against
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certain persons by not letting them use the but without altering it or rendering it
easement. [Negros Sugar Company v Hidalgo more burdensome. [NCC 627(1)]
(1936)]
(4) In a right of way, to ask for change in
width of easement sufficient for the needs
of the dominant estate. [NCC 651]
E.4. BY PRESCRIPTION
The needs of the dominant property
Continuous and apparent easements may be
ultimately determine the width of the
acquired by prescription of 10 years. [NCC
passage. And these needs may vary from
620]
time to time. [Encarnacion v. Court of
Requisites: Appeals]
(1) The easement must be continuous and (5) To renounce totally the easement, if he
apparent; desires to be exempt from contributing to
the expenses. [NCC 628]
(2) The easement must have been used for
10 years; and
(3) There is no need for good faith or just F.2. OBLIGATIONS OF DOMINANT ESTATE
title. OWNER
Note: (1) To use the easement for the benefit of
immovable and in the manner originally
Example of a continuous and apparent
established [NCC 626]
easement is of light and view, as opposed to
a right of way which is discontinuous but If established for a particular purpose, the
apparent, and thus cannot be acquired by easement cannot be used for a different
prescription. one. However, if established in a general
way, without specific purpose, the
Mere passage which was permitted and is
easement can be used for all the needs of
under an implied license cannot be the basis
the dominant estate.
of prescription. [Archbishop of Manila v Roxas
(1912)] (2) To notify the owner of the servient estate
before making repairs and to make
repairs in a manner least inconvenient to
F. RIGHTS AND OBLIGATIONS OF the servient estate [NCC 627(2)]
OWNERS OF DOMINANT AND (3) Not to alter the easement or render it
SERVIENT ESTATES more burdensome.
The owner of the dominant estate may
F.1. RIGHTS OF DOMINANT ESTATE make repairs at his expense, but he
OWNER cannot alter the easement or make it
more burdensome.[NCC 627]
(1) To use the easement and exercise all
rights necessary for it [NCC 625] Making the easement more burdensome
means widening the easement.
(2) The owner of the dominant estate is [Valderrama v. North Negros Sugar Co.
granted the right to use the principal (1925)]
easement, and all accessory servitudes.
(4) To contribute to expenses of works
Example: Easement of drawing water necessary for use and preservation of
carries with it the easement of right of servitude, if there are several dominant
way to the place where water is drawn. estates. [NCC 628]
Limitation: Only for the original The contribution is in proportion to the
immovable and the original purpose. benefits which each may derive from the
(3) To make, at his own expense, on the work.
servient estate, any works necessary for
the use and preservation of the servitude,
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Anyone who does not wish to contribute (3) To use the easement
may exempt himself by renouncing the
He may use the easement but must also
easement for the benefit of the others.
contribute proportionately to the
If the owner of the servient estate should expenses.
make use of the easement in any manner
whatsoever, he shall also be obliged to
contribute to the expenses in the F.4. OBLIGATIONS OF SERVIENT ESTATE
proportion stated, saving an agreement OWNER
to the contrary.
(1) Not to impair the use of the easement
(5) To do at his expense all necessary works [NCC 629(1)]
for the use and preservation of the
(2) To contribute proportionately to expenses
easement [NCC 627]
if he uses the easement [NCC 628(2)]
The necessity of the works determines
Unless there is an agreement to the
extent of such works.
contrary
(3) To pay for the expenses incurred for the
F.3. RIGHTS OF THE SERVIENT ESTATE change of location or form of the
OWNER easement
(1) To retain ownership and use of his
property
G. EXTINGUISHMENT OF EASEMENTS
The owner of the servient estate retains
(1) By merger in the same person of the
the ownership of the portion on which the
ownership of the dominant and servient
easement is established, and may use the
estates;
same in such a manner as not to affect
the exercise of the easement. [NCC 630] (2) By a non-user for ten years;
The servient owner must respect the use (3) When either or both of the estates fall
of the servitude, but retains ownership into such condition that the easement
and use of the same, in a manner not cannot be used;
affecting the easement.
(4) By the expiration of the term or the
(2) To change the place and manner of the fulfillment of the condition, if the
use of the easement [NCC 629] easement is temporary or conditional;
General rule: The owner of the servient (5) By the renunciation of the owner of the
estate cannot impair the use of the dominant estate; or
servitude.
(6) By the redemption agreed upon between
Exceptions: By reason of either: the owners of the dominant and servient
estates.
The place/manner originally assigned, the
use of such easement has become VERY
INCONVENIENT to the owner;
G.1. MERGER
The easement should prevent him from
Must be absolute, perfect and definite, and
making any important works, repairs or
not merely temporary.
improvements thereon;
Absolute: Ownership of the property must be
The change must be done at his expense;
absolute, thus not applicable to lease,
He offers another place or manner usufruct, etc.
equally convenient; and
Perfect: Merger must not be subject to a
The change is done in such a way that no condition.
injury is caused to the dominant owner or
to those who may have a right to use the
easement.
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(a) Owner of the dominant estate has joined By agreement of the interested parties
to another abutting on a public road. whenever the law does not prohibit it and no
injury is suffered by a 3rd person.
(b) A new road is opened giving access to the
isolated estate. By the provisions of Chapter 2, title VII, Book
II.
Requisite: the public highway must
substantially meet the needs of the dominant
estate in order that the easement may be
extinguished J. KINDS OF PRIVATE LEGAL
EASEMENTS
Owner of the servient estate may demand
that the easement be extinguished. (1) Natural drainage of water [NCC 637]
Owner of the servient estate must return (2) Riparian banks [NCC 638]
indemnity he received (value of the land) (3) Dam [NCC 639]
(4) Drawing water and watering animals
H. VOLUNTARY EASEMENTS [NCC 640-641]
Every owner of a tenement or piece of land (5) Aqueduct [NCC 642-646]
may establish thereon the easements which
(6) Stop lock or sluice gate [NCC 647]
he may deem suitable, and in the manner
and form which he may deem best. [NCC (7) Right of way [NCC 649-657]
688]
(8) Party wall [NCC 658-666]
The owner of a thing, the usufruct of which
(9) Light and view [NCC 667-681]
belongs to another, may impose, without the
consent of the usufructuary, any servitudes (10) Drainage of buildings [NCC 674]
which will not injure the right of usufruct.
(11) Intermediate distances [NCC 677-681]
[NCC 689]
(12) Nuisance [NCC 682-683]
Whenever the naked ownership belongs to
one person and the beneficial ownership to (13) Lateral and subjacent support [NCC
another, no perpetual voluntary easement 684-687]
may be established thereon without the
consent of both owners. [NCC 690]
J.1. THOSE ESTABLISHED FOR THE USE OF
Consent of all co-owners is required to
WATERS OR RELATING TO WATERS
impose an easement on an undivided
tenement. [NCC 691]
i. Natural Drainage
I. LEGAL EASEMENTS Lower estates are obliged to receive the
waters which naturally and without the
Easements imposed by law have for thir intervention of man descend from the higher
object either public use of the interest of estates (as well as the stones or earth which
private persons. [NCC 634] they carry with them).
The owner of the lower estate cannot do any
I.1. LAW GOVERNING LEGAL EASEMENTS works that will impede this easement.
i. For public easements The owner of the higher estate cannot do any
works that will increase the burden.
Special laws and regulations relating thereto.
(ex: PD 1067 and PD 705)
By the provisions of Chapter 2, Title VII, Book ii. Riparian Banks
II, NCC. The banks of rivers and streams are subject
ii. For private legal easements throughout their entire length and within a
zone of 3 meters for urban areas, 20 meters
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for agricultural areas and 40 meters for forest (1) To prove that he can dispose of the water
areas (PD 1067, Water Code as amended by and that it is sufficient for the use for
PD 1067) along their margins, to the which it is intended;
easement of public use in the general interest
(2) To show that the proposed right of way is
of navigation, floatage, fishing, recreation
the most convenient and the least
and salvage.
onerous to third persons; and
Estates adjoining the banks of navigable or
(3) To indemnify the owner of the servient
floatable rivers are subject to the easement of
estate in the manner determined by the
towpath for the exclusiveservice of river
laws and regulations
navigation and floatage.
Easement of aqueduct for private interest
If it be necessary to occupy lands of private
cannot be imposed on buildings, courtyards,
ownership, the proper indemnity shall first be
annexes, or outhouses, or on orchards or
paid.
gardens already existing.
This easement does not prevent the owner of
iii. Dam the servient estate from closing or fencing it,
or from building over the aqueduct in such
Whenever for the diversion of water it should
manner as not to cause the latter any
be necessary to build a dam, and the person
damage, or render necessary repairs and
who is to construct it is not the owner of the
cleanings impossible.
banks, or lands which must support it, he
may establish the easement of abutment of a This easement is considered as continuous
dam, after payment of the proper indemnity. and apparent, even though the flow of the
water may not be continuous, or its use
depends upon the needs of the dominant
iv. Drawing Water and Watering Animals estate, or upon a schedule of alternate days
or hours. Therefore, it can be created by
Compulsory easements for drawing water or
prescription. N.B.: In the appropriation of
for watering animals can be imposed only for
water, there is a need to apply for water
reasons of public use in favor of a town or
rights.
village, after payment of the proper
indemnity.
Easements for drawing water and for vi. Stop Lock or Sluice Gate
watering animals carry with them the
The construction of a stop lock or sluice gate
obligation of the owners of the servient
in the bed of the stream from which the water
estates to allow passage to persons and
is to be taken, for the purpose of improving
animals to the place where such easements
an estate.
are to be used, and the indemnity shall
include this service. Such person may demand that the owners of
the banks permit its construction, after
The width of the easement must not exceed
payment of damages, including those caused
10 meters.
by the new easement to such owners and to
the other irrigators.
v. Aqueduct
Any person who may wish to use upon his J.2. RIGHT OF WAY
own estate any water of which he can dispose
Who may demand
shall have the right to make it flow through
the intervening estates, with the obligation to (a) The owner of the dominant estate; or
indemnify their owners, as well as the owners
(b) Any person with the real right to cultivate
of the lower estates upon which the waters
or use the dominant estate e.g. a
may filter or descend.
usufructuary, a de jure possessor.
Person desiring to make use of this right is
obliged to:
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Note: a lessee cannot demand such The criterion of least prejudice to the servient
easement, because the lessor is the one estate must prevail over the criterion of
bound to maintain him in the enjoyment of shortest distance although this is a matter of
the property. judicial appreciation. While shortest distance
may ordinarily imply least prejudice, it is not
Requisites:
always so as when there are permanent
(1) The dominant estate is surrounded by structures obstructing the shortest distance;
other immovables owned by other while on the other hand, the longest distance
persons; may be free of obstructions and the easiest or
most convenient to pass through. [Quimen v.
(2) There must absolutely be no access i.e.
CA (1996)]
means of entrance or exit/egress to a
public highway; The fact that LGV had other means of egress
to the public highway cannot extinguish the
(3) Even if there is access, it is difficult or
said easement, being voluntary and not
dangerous to use, or grossly insufficient;
compulsory. The free ingress and egress
(4) Mere inconvenience in the use of an along Mangyan Road created by the
outlet does not render the easement a voluntary agreement between the parties is
necessity; thus legally demandable with the
(5) An adequate outlet is one that is corresponding duty on the servient estate not
sufficient for the purpose and needs of to obstruct the same. [La Vista Association v.
the dominant owner, and can be CA]
established at a reasonable expense; The width of the easement of right of way
(6) Does not necessarily have to be by land – shall be that which is sufficient for the needs
an outlet through a navigable river or a of the dominant estate, and may accordingly
lake or the sea if suitable to the needs of be changed from time to time. [NCC651]
the tenement is sufficient;
(7) The isolation of the immovable is NOT Obligations In Permanent And Temporary
due to the dominant owner’s own acts Easements Of Right Of Way
e.g. if he constructs building to others
obstructing the old way; and Permanent right of way Temporary right of way
(8) There is payment of indemnity; Indemnity
If right of way is permanent and
Consists of the Consists of the
continuous for the needs of the dominant
damages and the damages only.
estate = value of the land + amount of
value of the land.
damage caused to the servient estate;
If right of way is limited to necessary Necessary repairs
passage for cultivation of the estate and
for gathering crops, without permanent Dominant owner to Servient owner to
way = damage caused by encumbrance. spend on such. spend on such.
Share in taxes
Rules for establishing Right of Way:
The dominant owner Servient owner to
(1) Must be established at the point least shall reimburse a spend on such.
prejudicial to the servient estate. [NCC proportionate share of
650] taxes to the proprietor
(2) Insofar as consistent with the first rule, of the servient estate.
where the distance from the dominant
estate to a public highway is shortest.
(2) A new road is opened giving access to the Whenever it is necessary to establish a
isolated estate. compulsory easement of the right of way
or for a watering place for animals, the
provisions of this Section and those of
Notes on extinguishment Articles 640 and 641 shall be observed. In
this case the width shall not exceed 10
(1) Extinguishment is not automatic. The meters
owner of the servient estate must ask for
such extinguishment.
(2) Indemnity paid to the servient owner J.3. PARTY WALL
must be returned without interest. Refers to all those mass of rights and
Interest on account of indemnity is obligations emanating from the existence
deemed to be rent for use of easement. and common enjoyment of wall, fence,
enclosures or hedges, by the owners of
adjacent buildings and estates separated by
Special Rights of Way such objects.
(1) Right of way to carry materials for the
construction, repair, improvement,
alteration or beautification of a building Nature
through the estate of another. A common wall which separates two estates,
(2) Right of way to raise on another’s land built by common agreement at the dividing
scaffolding or other objects necessary for line such that it occupies a portion of both
the work. estates on equal parts.
A party wall is a special form of co-ownership property owners may rebut these
(a kind of compulsory co-ownership). presumptions.
Each owner owns part of the wall but it
cannot be separated from the other portions
When Existence Of An Exterior Sign Is
belonging to the others. A party wall has a
Presumed [NCC 660]
special characteristic that makes it more of
an easement as it is called by law. (1) Whenever in the dividing wall of buildings
there is a window or opening.
An owner may use a party wall to the extent
of the ½ portion on his property. (2) Whenever one side is straight and plumb
on all its facement, and on the other, it
has similar conditions on the upper part,
Party Wall Co-ownership but the lower part slants or projects
outward.
Shares of the co- Before division of (3) Whenever the entire wall is built within
owners cannot be shares, a co-owner the boundaries of one of the estates.
physically segregated cannot point to any
but they can be definite portion of the (4) Whenever the dividing wall bears the
physically identified. property as belonging burden of the binding beams, floors and
to him. roof frame of one of the buildings, but not
those of the others.
There is no such None of the co-
(5) Whenever the dividing wall between
limitation. owners may use the
courtyards, gardens, and tenements is
community property
constructed in such a way that the coping
for his exclusive
sheds the water upon only one of the
benefit because he
estates.
would be invading the
rights of the others. (6) Whenever the dividing wall, being built of
masonry, has stepping stones, which at
Any owner may free In a co-ownership, certain intervals project from the surface
himself from partial renunciation is on one side only, but not on the other.
contributing to the allowed.
cost of repairs and (7) Whenever lands enclosed by fences or
construction of a live hedges adjoin others that are not
party wall by enclosed.
renouncing all his
rights thereto.
Note: The deposit of earth or debris on one
side alone is an exterior sign that the owner
of that side is the owner of the ditch or drain.
When Existence Of Easement Of Party Wall Is
The presumption is an addition to those
Presumed
enumerated in NCC 660.
(1) In dividing walls of adjoining buildings up
to the point of common elevation.
Right Of Owners Of A Party Wall
(2) In dividing walls of gardens or yards
situated in cities, or towns, or in rural
communities. i. Generally, part-owners may use the wall in
(3) In fences, walls and live hedges dividing proportion to their respective interests,
rural lands. provided that:
Note: (1) The right to use by the other party is not
interfered with;
A title or an exterior sign, or any other proof
showing that the entire wall in controversy (2) The consent by the other owner is needed
belongs exclusively to one of the adjoining if a party wants to open a window; and
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(3) The condition of the building is (e) Bear the increased expenses for
determined by experts. preservation
ii. To increase the height of the wall. J.4. EASEMENT OF LIGHT AND VIEW
(1) He does this at his expense, including the
thickening of the wall on his land.
Definition
(2) He shall indemnify the other party for any
Easement of light (jus luminum) is the right to
damages.
admit light from the neighboring estate by
virtue of the opening of a window or the
making of certain openings.
iii. To acquire a half-interest in any increase in
height or thickness of the wall, paying a Easement of view (jus prospectus) is the right
proportionate share in the cost of the work to make openings or windows, to enjoy the
and the value of the land covered. view through the estate of another and the
power to prevent all constructions or works
Note that the value of the land must be
which would obstruct such view or make the
appraised at the time of acquisition.
same difficult.
Necessarily includes the easement of light.
iv. To renounce his part ownership of a party
It is possible to have light only without a view.
wall if he desires to demolish his building
supported by the wall. Note:
He shall bear all the expenses of repairs and If an owner has an easement of view, he also
work necessary to prevent any damage which has an easement of light, but not vice versa.
the demolition may cause to the party wall.
Nature
Obligations Of Owners Of A Party Wall
(1) Positive: Opening a window through a
(1) To contribute proportionately to the party wall
repair and maintenance of the party wall
When the opening is made through the
unless he renounces his part-ownership.
wall of another
This includes the renunciation of the
When a part owner of a party wall opens
share in the wall and the land
a window therein, such act implies the
He cannot renounce his part if his exercise of the right of ownership by the
building is being supported by the party use of the entire thickness of the wall.
wall
The easement is created only after the
(2) If he raises the height of the wall, he lapse of the prescriptive period.
must:
(2) Negative: Formal prohibition upon the
(a) Bear the cost of maintenance of the owner of the adjoining land or tenement.
additions; Formal means that the prohibition has
been notarized [Cortes v Yu-Tibo (1903)]
(b) Bear the cost of construction, if the
wall cannot support the additional When a person opens a window on his
height; own building, he is exercising his right of
ownership on his property, which does
(c) Give additional land, if necessary to
not establish an easement.
thicken the wall;
Coexistent is the right of the owner of the
(d) Pay for damages, if necessary, even if
adjacent property to build or plant on his
temporary; and
own land, even if such structures or
planting cover the window.
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If the adjacent owner does not build (i) The outer line of the wall if the
structures to obstruct the window, such is openings do not project.
considered mere tolerance and NOT a
(ii) The outer line of the openings if
waiver of the right to build.
they project.
An easement is created only when the
(iii) The dividing line between the two
owner opens up a window and
properties in cases of oblique
subsequently prohibits or restrains the
views.
adjacent owner from doing anything that
may tend to cut off or interrupt the light
and the 10-year prescriptive period has
Effect If Distances Are Not Complied With
lapsed by a notarial prohibition.
(1) Easement is not acquired by prescription
(2) Windows are considered unlawful
Rules And Restrictions On Openings And
openings and may be ordered by the
Structures
Court to be closed.
i. Openings for light
(3) Even if the adjoining owner does not
When the opening is 2 meters or more object to the construction of such
away from another’s tenement, i.e. the structures at first, he cannot be held to be
boundary line: in estoppel, unless the 10-year period of
acquisitive prescription has passed.
(a) An owner may build any kind of
opening without restriction.
When the wall is contiguous (less than 2 Note:
meters) to another’s tenement:
In buildings separated by a public way or
(a) Openings are made at the height of alley, not less than 3 meters wide, the
the ceiling joists (horizontal beams) distances required (2 m, 60 cm) do not apply.
or immediately under the ceiling;
If an easement is acquired to have direct
(b) Size: 30 cm square; views, balconies or belvederes, the owner of
the servient estate must not build at less than
(c) With iron grating imbedded in the
3 meters from the boundary line of the two
wall;
tenements.
(d) With a wire screen.
The distances may be stipulated by the
parties, but should not be less than what is
prescribed by the law (2 meters and 60 cm).
ii. Openings for view
(a) The following structures cannot be
built without following the prescribed Notes on the Acquisition of the Easement
distances:
Period of acquisitive prescription depends
Window, apertures, balconies and upon whether the easement of light and view
other projections with a direct view is positive or negative, and only starts to run
upon or towards an adjoining land from the time the owner asserting the
must have a distance of 2 meters servitude has forbidden the owner of the
between the wall and the contiguous adjoining tenement from doing something he
property. could lawfully do.
(b) For structures with a side or oblique THUS, although the action to compel the
view (at an angle from the boundary closure might have prescribed because the
line), there should be a distance of 60 easement has been created by prescription,
centimeters. the owner of the adjoining estate may still
build on his own land a structure that might
Measured from:
obstruct the view for 10 years, thus
extinguishing it by non-user.
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proceedings, is the best remedy against a reasonable time to enable the other to
public nuisance. abate the nuisance himself.
A private person may file an action on (4) The means employed must be reasonable
account of a public nuisance if it is especially and for any unnecessary damage or force,
injurious to him. the actor will be liable. The right to abate
is not greater than the necessity of the
General rule: An individual has no right of
case and is limited to the removal of only
action against a public nuisance. The
so much of the objectionable thing as
abatement proceedings must be instituted in
actually causes the nuisance.
the name of the State or its representatives.
(5) The property must not be destroyed
Exception: An individual who has suffered
unless it is absolutely necessary to do so.
some special damage different from that
sustained by the general public may maintain
a suit in equity for an injunction to abate it, or
F.2. PRIVATE NUISANCE
an action for damages which he has
sustained. Private Nuisance: That which is not included
in the definition of a public nuisance [NCC
The action becomes a tort if an individual has
695]
suffered particular harm, in which case the
nuisance is treated as a private nuisance with
respect to such person.
Remedies
(1) The remedies against a private nuisance
Requisites of the right of a private individual are:
to abate a public nuisance
(a) A civil action; or
(1) That demand be first made upon the
(b) Extrajudicial abatement.
owner or possessor of the property to
abate the nuisance; (2) The procedure for extrajudicial
abatement of a public nuisance by a
(2) That such demand has been rejected;
private person will also be followed.
(3) That the abatement be approved by the
(3) The person extrajudicially abating a
district health officer and executed with
nuisance liable for damages if:
the assistance of the local police; and
(4) If he causes unnecessary injury; or
(4) That the value of the destruction does not
exceed P3000. (5) If an alleged nuisance is later declared by
the courts to be not a real nuisance.
Rules
Remedies of the property owner
(1) The right must be exercised only in cases
of urgent or extreme necessity. The thing (1) A person whose property is seized or
alleged to be a nuisance must be existing destroyed as a nuisance may resort to the
at the time that it was alleged to be a courts to determine whether or not it was
nuisance. in fact a nuisance.
(2) A summary abatement must be resorted (2) An action for replevin;
to within a reasonable time after (3) To enjoin the sale or destruction of the
knowledge of the nuisance is acquired or property;
should have been acquired by the person
entitled to abate. (4) An action for the proceeds of its sale and
damages if it has been sold; or
(3) The person who has the right to abate
must give reasonable notice of his (5) To enjoin private parties from proceeding
intention to do so, and allow thereafter a to abate a supposed nuisance.
Mode Title
to the finder. The finder and the owner shall B.4. WHAT MAY BE DONATED
be obliged, as the case may be, to reimburse
All present property or part thereof of the
the expenses.
donor, subject to the limitations below
If the owner should appear in time, he shall
be obliged to pay, as a reward to the finder,
one-tenth of the sum or of the price of the Limitations:
thing found.
(1) The donor reserves, in full ownership or
usufruct, sufficient means for support of
himself and all relatives entitled to be
B. DONATION supported by donor at the time of
Donation is an act of liberality whereby a acceptance. [NCC 750].
person disposes gratuitously of a thing or (2) The donor reserves property sufficient to
right in favor of another, who accepts it. pay donor’s debts contracted before
(Simple donation) donation, otherwise, donation is in fraud
of creditors [NCC 759, 1387].
B.1. OTHER INSTANCES CONSIDERED AS (3) Donations provided for in marriage
DONATION settlements between future spouses –
must be not more than 1/5 of present
When a person gives to another a thing or property.
right on account of the latter's merits or of
the services rendered by him to the donor, (4) Donation propter nuptias by an ascendant
provided they do not constitute a consisting of jewelry, furniture or clothing
demandable debt. (Remuneratory donation) not to exceed 1/10 of disposable portion.
When the gift imposes upon the donee a
burden that is less than the value of the thing B.5. WHAT MAY NOT BE DONATED
given. (Onerous donation)
(1) Future property
“Future property” is understood as
B.2. NATURE anything which the donor does not
Bilateral contract creating unilateral currently own although the donor may or
obligations on the donor’s part. may not own it later. [Osorio v Osorio
(1921)]
Requires consent of both donor and donee
(except for onerous donation) though it Note:
produces obligations only on the side of the Inheritance is NOT considered as future
donor, unless it is an onerous donation. property. [ibid]
B.3. REQUISITES (2) The donor cannot donate more than he
(1) Consent and capacity of the parties; can give or receive by will [NCC 752]
(2) Animus Donandi (intent to donate);
(3) Delivery of thing donated in oral donation C. KINDS OF DONATIONS
of movable valued at P5,000 or less,
C.1. AS TO ITS TAKING EFFECT
once proper form is complied with,
donation is perfected;
(4) Form as prescribed by law; and i. Donation Inter Vivos [NCC 729]
(5) Impoverishment of donor’s patrimony Donation which shall take effect during the
and enrichment on part of donee. lifetime of the donor upon concurrence of the
requirements of donation, though the
property shall not be delivered until after the
donor's death.
If made orally, the donation requires the (4) Legal representative, if done is an unborn
simultaneous delivery of the thing or of the child
document representing the right donated.
Note:
If the value of the movable donated exceeds
A joint donation (donation to two or more
P5,000, the donation and the acceptance
persons) could not be accepted by a donee,
should be in writing; otherwise, the donation
independently of the other donee/s. [Genato
is void.
v Lorenzo (1968)]
(1) Those made between persons guilty of of the gospel who extended spiritual aid to
adultery or concubinage at the time of him during the same period;
the donatrion;
The relatives of such priest or minister of the
(2) Those made between persons guilty of gospel within the fourth degree, the church,
the same criminal offense if the donation order, chapter, community, organization, or
is made in consideration thereof; or institution to which such priest or minister
may belong;
(3) Those made to a public officer, his
spouse, descendants, and/or ascendants A guardian with respect to testamentary
by reason of the office. dispositions given by a ward in his favor
before the final accounts of the guardianship
have been approved, even if the testator
By reason of the donee’s unworthiness or should die after the approval thereof;
incapacity to succeed [NCC 740, 1032 except nevertheless, any provision made by the ward
(6-8), and 1027 except (4)] in favor of the guardian when the latter is his
ascendant, descendant, brother, sister, or
(1) NCC 1032:
spouse, shall be valid;
Parents who have abandoned their children
Any physician, surgeon, nurse, health officer
or induced their daughters to lead a corrupt
or druggist who took care of the testator
or immoral life, or attempted against their
during his last illness; or
virtue;
Individuals, associations and corporations not
Any person who has been convicted of an
permitted by law to inherit.
attempt against the life of the testator, his or
her spouse, descendants, or ascendants;
Any person who has accused the testator of a By reason of prejudice to creditors or heirs
crime for which the law prescribes
(1) If donation is made in fraud of creditos by
imprisonment for six years or more, if the
debtor who is insolvent (rescissible for
accusation has been found groundless;
accion pauliana)
Any heir of full age who, having knowledge of
(2) If legitimes of compulsory heirs infringed
the violent death of the testator, should fail
upon (donation is inofficious (revocation
to report it to an officer of the law within a
or reduction of donation)
month, unless the authorities have already
taken action; this prohibition shall not apply
to cases wherein, according to law, there is no
obligation to make an accusation; E. EFFECTS OF DONATION /
LIMITATIONS
Any person convicted of adultery or
concubinage with the spouse of the testator;
Any person who by fraud, violence, E.1. IN GENERAL
intimidation, or undue influence should cause (1) The donee may demand actual delivery of
the testator to make a will or to change one thing donated;
already made;
(2) The donee is subrogated to the rights of
Any person who by the same means prevents the donor in the property donated;
another from making a will, or from revoking
one already made, or who supplants, (3) The donor is not obliged to warrant the
conceals, or alters the latter’s will; things donated except in onerous
donations where the donor is liable for
Any person who falsifies or forges a supposed eviction up to the extent of the burden;
will of the decedent. [NCC 754]
(2) NCC 1027: (4) The donor is liable for eviction or hidden
The priest who heard the confession of the defects in case of bad faith on his part;
testator during his last illness, or the minister [NCC 754]
(5) In donation propter nuptias, the donor If the rule is violated, the stipulation on
must release the property donated from reversion is void but the donation is still valid.
mortgages and other encumbrances
unless the contrary has been stipulated;
iv. Payment of donor’s debt [NCC 758]
(6) In donations to several donees jointly,
there is no right of accretion EXCEPT: (1) If expressly stipulated, the donee must
pay only the debts contracted before the
(a) When the donor provides otherwise;
donation unless specified otherwise.
or
But in no case shall the donee be
(b) When the donation to husband and
responsible for debts exceeding the value
wife is joint with the right of accretion
of the property donated unless clearly
UNLESS the donor provides
intended.
otherwise.
(2) If there’s no stipulation, the donee will be
(7) Donations by a person to his non-heirs
answerable only for the donor’s debt only
are collationable. [Liguez v CA]
in case the donation is in fraud of
(8) Donations made to one’s heirs must creditors.
expressly prohibit collation to be
exempted from collation. [De Roma v CA
(1987)] v. Illegal or impossible conditions [NCC 1183]
Impossible conditions: those contrary to good
customs or public policy and those prohibited
E.2. SPECIAL PROVISIONS
by law shall annul the obligation, which
depends upon them.
i. Reservation by donor of power to dispose (in The condition not to do an impossible thing
whole or in part) or to encumber property shall be considered as not having been
donated [NCC 755] agreed upon.
The donor may reserve the right to dispose of If the obligation is divisible, that part thereof
some things donated, or of some amount, which is not affected by the impossible or
which shall be a charge thereon. unlawful condition shall be valid.
But if he should die without having made use
of this right, the property or amount reserved
vi. Double donations [NCC 744]
shall belong to the donee.
Rule: Priority in time, priority in right.
(1) If movable: one who first took possession
ii. Donation of naked ownership to one donee
in good faith.
and usufruct to another [NCC 756]
(2) If immovable: one who recorded in
The naked ownership and the usufruct may
registry of property in good faith
be donated separately, provided that all the
donees are living at the time of the donation. (3) If there is no inscription, the one who first
took possession in good faith.
(4) If there is no possession, one who can
iii. Conventional reversion in favor of donor or
present the oldest title.
other person [NCC 757]
(1) If made in favor of the donor, reversion
may be for any case and circumstance. vii. Excessive/Inofficious Donations [NCC 752]
(2) If made in favor of other persons, such Inofficious donation: a type of donation in
persons must all be living at the time of which a person gives or receives more than
the donation. what he may give or receive by will. If a
donation is inofficious, it shall be reduced
with regard to the excess.
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But this reduction shall not prevent the guilt of the donor and donee may be proved
donations from taking effect during the life of by preponderance of evidence in the same
the donor, nor shall it bar the donee from action.
appropriating the fruits.
The fruits must be returned from the filing of Applies to all donations EXCEPT:
the action.
(1) Mortis causa
Mortgages by the donee are valid but may be
(2) Propter nuptias
discharged subject to reimbursement from
the donee. (3) Onerous donations
Extent of revocation: only to the extent of the Notes:
presumptive legitime of the child.
Founded on moral duty: one who received a
(1) Insufficient means of support donation must be grateful to his benefactor.
(2) In fraud of creditors Conviction is not necessary.
(3) Prescription – 4 years from either: Time to file action for revocation – within 1 yr
from knowledge of the offense by donor and
Birth of first legitimate child;
it was possible for him to file the case [NCC
Legitimation, adoption, recognition of first 769].
child;
Judicial declaration of filiation; or
Who may file
Knowledge of information on the existence of
Only the donor can file an action for
a child believed to be dead.
revocation on the ground of the donee’s
ingratitude, as such is personal to the donor.
G.2. REVOCATION It may be filed by the donor’s heirs only if they
substitute the donor in case the latter dies
(1) Failure to comply with any of the
during the pendency of the case.
conditions imposed by the donor upon
the donee
(2) For additional legitime for subsequent Effect of revocation on alienations and
birth, reappearance or adoption encumbrances [NCC 766]
(3) Ingratitude Alienations and mortgages effected before
the notation of the complaint for revocation
The following cases are forms of
in the Registry of Property shall subsist.
ingratitude:
Later ones shall be void.
If the donee should commit some offense
against the person, the honor or the property
of the donor, or of his wife or children under
Effect as to fruits [NCC 768]
his parental authority;
When the donation is revoked for any of the
If the donee imputes to the donor any
causes stated in NCC 760, or by reason of
criminal offense, or any act involving moral
ingratitude, or when it is reduced because it is
turpitude, even though he should prove it,
inofficious, the donee shall not return the
unless the crime or the act has been
fruits except from the filing of the complaint.
committed against the donee himself, his
wife or children under his authority; or If the revocation is based upon
noncompliance with any of the conditions
If he unduly refuses him support when the
imposed in the donation, the donee shall
donee is legally or morally bound to give
return not only the property but also the fruits
support to the donor.
thereof which he may have received after
having failed to fulfill the condition.
No accretion – one donee does not get the share of Exception: those given to husband and wife, except
the other donees who did not accept [NCC 753] when the donor otherwise provides
Donor
Who are allowed: All persons who may contract (of Who are not allowed:
legal age) and dispose of their property [NCC 735]
(1) Guardians and trustees with respect to the
property entrusted to them [NCC 736]
Donor’s capacity is determined at the time of the
making of donation [NCC 737]
(2) Made between person who are guilty of adultery
or concubinage [NCC 739]
Made between persons found guilty of the same
criminal offense, in consideration thereof [NCC 739]
Donee
Who are allowed to accept donations: Those who Who are not allowed:
are not specifically disqualified by law [NCC 738]
(1) Made between person who are guilty of adultery
Those who are allowed, with qualifications: or concubinage [NCC 739]
Minors, insane/imbecile, deaf-mute and others who (2) Made between persons found guilty of the same
are incapacitated [see NCC 38], provided that their criminal offense, in consideration thereof [NCC 739]
acceptance is done through their parents or legal
(3) Made to a public officer or his wife, descendant
representatives [NCC 741]
and ascendants, by reason of his office [NCC 739]
(2) Conceived and unborn children, provided that
(4) Those who cannot succeed by will [NCC 740]
the donation is accepted by those who would legally
represent them if they were already born Those made to incapacitated persons, although
simulated under the guise of another contract [NCC
743]
Who may accept [NCC 745] When to accept: during the lifetime of the donor or
donee [NCC 746]
(1) Donee personally
(2) Authorized person with a special power for the
purpose or with a general sufficient power
If the donation so states, the donee may be obliged Exception: when contrary intention clearly appears
to pay the debts previously contracted by the donor
and in no case shall he be responsible for the debts
exceeding the value of the thing donated [NCC 758]
Right to dispose of some of the things donated, or If the donor dies without exercising this right
of some amount which shall be a charge thereon
Reversion
The property donated may be restored or returned Limitation to (2): the third person would be living at
to the time of the donation
(1) Donor or his estate; or
(2) Another person
Revocation/Reduction
Time of Action Transmissibility Effect Liability (Fruits)
Within 4 years from Transmitted to children Property is returned Fruits returned from the
birth, legitimation and and descendants upon filing of the complaint
If the property has been
adoption the death of donor
sold, its value at the
time of donation shall
be returned.
If the property was
mortgaged, the donor
may redeem the
mortgage, with right to
recover the amount from
the donee
Within 4 years from non- May be transmitted to Property returned, Fruits received after
compliance donor’s heirs and may alienations and having failed to fulfill
be exercised against mortgages void subject condition returned
donee’s heirs to rights of third persons
in good faith
Ingratitude
Within 1 year after Not transmitted to heirs Property returned, but Fruits received from the
knowledge by donor of of donor/ donee, but if alienations and filing of the complaint
the fact and it was donor dies during mortgages effected returned
possible for him to bring pendency of case, heirs before the notation of
the action may be substituted. the complaint for
revocation in the registry
of property subsist
At any time, by the Not transmissible Reduced to the extent Donee entitled
donor or relatives necessary to provide
entitled to support support
Inofficiousness for being in excess of what the donor can give by will
Within 5 years from the Transmitted to donor’s Donation takes effect on Donee entitled
death of the donor [NCC heirs the lifetime of donor.
1149] Reduction only upon his
death with regard to the
excess
Rescission within 4 Transmitted to creditor’s Returned for the benefit Fruits returned/ if
years from the heirs or successors-in- of the creditor who impossible, indemnify
perfection of donation/ interest brought the action creditor for damages
knowledge of the
donation
C.1. BY OFFENDER
C.7. PROPERTY OF PUBLIC DOMINION
The offender can never acquire, through
Prescription, both acquisitive and extinctive,
prescription, movable properties possessed
does not run against the State in the exercise
through a crime.
of its sovereign function to protect its interest
EXCEPT with respect to its patrimonial
property which may be the object of
C.2. REGISTERED LANDS
prescription. [NCC 1113]
PD 1529 (Amending and codifying the laws
relative to registration of property and for
other purposes) C.8. PRESCRIPTION DISTINGUISHED
No title to registered land in derogation of FROM LACHES
the title of the registered owner shall be Prescription Laches
acquired by prescription or adverse
possession. Concerned with the Concerned with the
fact of delay effect of delay
Applies at law Applies at equity Prescribes after 10 years from the time the
obligation secured by the mortgage becomes
Cannot be availed of Being a defense of due and demandable
unless it is especially equity, need not be
pleaded as an specifically pleaded
affirmative allegation ii. Actions that Prescribe in 10 Years [NCC 1144]
(1) Upon a written contract
Based on a fixed time NOT based on a fixed
time (2) Upon an obligation created by law
(3) Upon a judgment
The computation of the period of prescription
D. PRESCRIPTION OR LIMITATION OF
of any cause or right of action, which is the
ACTIONS same as saying prescription of the action,
should start from the date the cause of action
accrues or from the day the right of the
D.1. TO RECOVER MOVABLE PROPERTIES
plaintiff is violated. [Nabus v. CA, 1991]
The action rescribes in 8 years from the time
the possession thereof is lost. [NCC 1140]
iii. Actions that Prescribe in 6 Years [NCC 1145]
However, the action shall not prosper if it is
brought after 4 years when the possessor has (1) Upon an oral contract
already acquired title by ordinary acquisitive (2) Upon a quasi-contract
prescription. [NCC 1132]
If the possessor acquired the movable in good
faith at a public sale, the owner cannot obtain iv. Actions that Prescribe in 4 Years [NCC 1145]
its return without reimbursing the price paid. (1) Upon an injury to the rights of the
plaintiff
D.2. TO RECOVER IMMOVABLES (2) Upon a quasi-delict
General Rule: Real actions prescribe after 30 But when the action arises from any act of
years [NCC 1141] any public officer involving the exercise of
powers arising from Martial Law including
Exception: The possessor has acquired the arrest, detention and/or trial of the
ownership of the immovable by ordinary plaintiff, the same must be brought within 1
acquisitive prescription through possession of year.
10 years. [NCC 1134]
v. Actions that Prescribe in One Year or Less
[NCC 1147]
(1) For forcible entry within one year from communication signed by the payor would
date of dispossession thru FISTS or interrupt the running of the period of
unlawful detainer 1 year from date of last prescription [PNB v. Osete (1968)]
demand
(2) For defamation
• Special characteristics:
A. GENERAL CONCEPT OF LEASE o Essential purpose is to
transmit the use/enjoyment
A.1. CHARACTERISTICS OF EVERY of a thing
LEASE o Consensual
o Onerous
• Temporary duration o Price is fixed in relation to the
• Onerous period of use/enjoyment
• Price is fixed according to the o Temporary
duration of the contract (Tolentino)
• The subject matter must be within
A.2. KINDS OF LEASE (ART. 1642) the commerce of man.
Art. 1668. The lessee is liable for any The ejectment of tenants of agricultural lands
deterioration caused by members of his shall be governed by special laws.
household and by guests and visitors.
ii) Right to Ask for Writ of Preliminary
iii) Rights of Purchaser of Leased Land Mandatory Injunction in Unlawful Detainer
Art. 1676. The purchaser of a piece of land Cases
which is under a lease that is not recorded in Art. 1674. In ejectment cases where an appeal
the Registry of Property may terminate the is taken the remedy granted in Article 539,
lease, save when there is a stipulation to the second paragraph, shall also apply, if the
contrary in the contract of sale, or when the higher court is satisfied that the lessee's
purchaser knows of the existence of the lease. appeal is frivolous or dilatory, or that the
lessor's appeal is prima facie meritorious. The
If the buyer makes use of this right, the lessee period of ten days referred to in said article
may demand that he be allowed to gather the shall be counted from the time the appeal is
fruits of the harvest which corresponds to the perfected.
current agricultural year and that the vendor
indemnify him for damages suffered. Art. 539. Every possessor has a right to be
respected in his possession; and should he be
If the sale is fictitious, for the purpose of disturbed therein he shall be protected in or
extinguishing the lease, the supposed vendee restored to said possession by the means
cannot make use of the right granted in the established by the laws and the Rules of
first paragraph of this article. The sale is Court.
presumed to be fictitious if at the time the
supposed vendee demands the termination A possessor deprived of his possession
of the lease, the sale is not recorded in the through forcible entry may within ten days
Registry of Property. from the filing of the complaint present a
motion to secure from the competent court,
Art. 1677. The purchaser in a sale with the in the action for forcible entry, a writ of
right of redemption cannot make use of the preliminary mandatory injunction to restore
power to eject the lessee until the end of the him in his possession. The court shall decide
period for the redemption. the motion within thirty (30) days from the
filing thereof.
Rural: principal purpose is lost after they have been separated from their
exploitation of the soil. stalk, root or trunk.
2) Useful improvements in good faith Article 1682. The lease of a piece of rural
made by lessee land, when its duration has not been fixed, is
understood to have been for all the time
Art. 1678. If the lessee makes, in good faith, necessary for the gathering of the fruits which
useful improvements which are suitable to the whole estate leased may yield in one year,
the use for which the lease is intended, or which it may yield once, although two or
without altering the form or substance of the more years have to elapse for the purpose.
property leased, the lessor upon the
termination of the lease shall pay the lessee Article 1683. The outgoing lessee shall allow
one- half of the value of the improvements at the incoming lessee or the lessor the use of
that time. Should the lessor refuse to the premises and other means necessary for
reimburse said amount, the lessee may the preparatory labor for the following year;
remove the improvements, even though the and, reciprocally, the incoming lessee or the
principal thing may suffer damage thereby. lessor is under obligation to permit the
He shall not, however, cause any more outgoing lessee to do whatever may be
impairment upon the property leased than is necessary for the gathering or harvesting and
necessary. utilization of the fruits, all in accordance with
the custom of the place.
With regard to ornamental expenses, the
lessee shall not be entitled to any Article 1684. Land tenancy on shares shall be
reimbursement, but he may remove the governed by special laws, the stipulations of
ornamental objects, provided no damage is the parties, the provisions on partnership and
caused to the principal thing, and the lessor by the customs of the place.
does not choose to retain them by paying
their value at the time the lease is Article 1685. The tenant on shares cannot be
extinguished. ejected except in cases specified by law.
C. TERMINATION
Lease may terminate by:
1) Expiration of the period
2) Total loss of the thing
3) Resolution of the right of lessor
(lessor-usufructuary and usufruct
expires)
4) Will of the purchaser or transferee of
things
5) Rescission
CIVIL LAW
OBLIGATIONS
1. As to Sanction
I. Obligations
(1) CIVIL OBLIGATION (or perfect
obligation) – give a right of action to
A. DEFINITION compel their performance; the sanction
is judicial process
Art. 1156. An obligation is a juridical necessity
to give, to do or not to do. (2) NATURAL OBLIGATION – midway
between civil and purely moral
obligations; there is a juridical tie, but
Art. 1156 provides the definition of civil performance is left to the will of the
obligations only (…juridical necessity); it does debtor; after voluntary fulfillment by the
not cover natural obligations. obligor, the sanction is the law
(3) MORAL OBLIGATION (or imperfect
A.1. ELEMENTS OF AN OBLIGATION obligation) – the sanction is conscience
or morality. These obligations are not
(1) ACTIVE SUBJECT (Obligee/Creditor): The judicially demandable. Moral duty is not
person who has the right or power to a valid consideration.
demand the prestation.
(2) PASSIVE SUBJECT (Obligor/Debtor): The
Natural Obligations
person bound to perform the prestation.
(3) PRESTATION (Object): The conduct Art. 1423. Obligations are civil or natural.
required to be observed by the Civil obligations give a right of action to
debtor/obligor (to give, to do, or not to compel their performance. Natural
do). obligations, not being based on positive law
but on equity and natural law, do not grant
(4) VINCULUM JURIS (Juridical or Legal Tie; a right of action to enforce their
Efficient Cause): That which binds or performance, but after voluntary fulfillment
connects the parties to the obligation. (De by the obligor, they authorize the retention
Leon) of what has been delivered or rendered by
reason thereof. Some natural obligations are
set forth in the following articles.
A.2. DIFFERENT KINDS OF PRESTATIONS
(1) TO GIVE: real obligation; to deliver either
(a) a specific or determinate thing, or (b) a Natural obligations are midway between civil
generic or indeterminate thing. obligations and purely moral obligations. It is
distinguished from moral in that it produces
(2) TO DO: positive personal obligation; some juridical effects (ex. Right to retention),
includes all kinds of work or service. but is distinguished from civil in that it does
(3) NOT TO DO: negative personal not give rise to an action to compel its
obligation; to abstain from doing an act; performance [Tolentino].
includes the obligation not to give.
Payment is voluntary when the debtor knows
Requisites of a Prestation: that the obligation is a natural one which
(1) Possible - physically and juridically; cannot be coerced nor recovered through
solutio indebiti.
(2) Assessable - Must have a possible
equivalent in money.
(3) Determinate, or at least, determinable; “Fulfillment” does not refer only to the
delivery of things, but also to the
performance of an act, the giving of security,
B. CLASSIFICATION OF OBLIGATIONS and the execution of a document.
C.5 QUASI-DELICTS
Art. 1162. Obligations derived from quasi-
delicts shall be governed by the provisions of
Chapter 2, Title XVII of this Book, and by
special laws.
II. Nature and Effect of Duties of the Debtor Rights of the Creditor
excluding fruits
Obligations (b) accessories – 5. To recover
things destined for damages in case of
the embellishment, breach, exclusive or
A. OBLIGATION “TO GIVE” use or preservation of in addition to specific
another thing of performance (1165;
more importance 1170)
A.1. TYPE OF THINGS:
5. To pay damages in
Limited case of breach (1170)
Specific Thing Generic Thing
Generic Thing
To Give a Generic Thing
Particularly Object is When the
designated designated generic 1. To take care of the 1. To ask that the
or physically only by its objects are thing (1163) obligation be
segregated class/ confined to a complied with (1165)
2. To deliver a thing
from all genus/ particular of the quality 2. To ask that the
others of the species. class. intended by the obligation be
same class parties taking into complied with by a
(Art.1460); consideration the third person at the
Identified by purpose of the expense of the debtor
individuality. obligation and other
3. To recover
Cannot be Can be Can be circumstances (1246)
damages in case of
substituted substituted substituted - Creditor cannot breach (1165)
against the by any of the by any of the demand a thing of
obligee’s will. same class same 4. Not to be
superior quality;
and same particular compelled to receive
neither can the
kind. class. a different one,
debtor deliver a thing
although of the same
of inferior quality.
value as, or more
A.2. RIGHTS AND DUTIES OF PARTIES: 4. To pay damages in valuable than that
case of breach (1170) which is due (1244)
Duties of the Debtor Rights of the Creditor
Note: No legal
To Give a Specific Thing accessory obligations
1. To preserve or take 1. To compel delivery arise until thing is
care of the thing due (1165) separated from
(1163) others of their kind.
[Reyes and Puno]
2. To deliver the 2. To fruits from the
thing itself (1165) time the obligation to
deliver arises (1164) B. OBLIGATION “TO DO” OR “NOT TO
3. To deliver the fruits
of the thing (1164) DO”
3. To accessions and
4. To deliver its
accessories, even if
accessions and B.1. RIGHTS AND DUTIES OF PARTIES:
not mentioned (1166)
accessories (1166)
4. Not to be Duties of the Debtor Rights of the Creditor
(a) accessions –
compelled to receive
everything which is To Do
a different one,
produced by a thing,
although of the same 1. To do it (1167) 1. To have the
or which is
value as, or more obligation executed
incorporated or 2. To shoulder the
valuable than that at the cost of the
attached thereto, cost of execution
which is due (1244) debtor (1167)
should he fail to do it
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(2) Offer must be in compliance with the Art 1192 Art 2215
prestation as it should be performed.
“In case both parties “In contracts, quasi-
(3) Creditor refuses performance without have committed a contracts, and quasi-
just cause. breach of the delicts, the court may
obligation, the equitably mitigate
Effects: liability of the first the damages under
infractor shall be circumstances other
(1) The responsibility of the debtor is reduced equitably tempered than the case
to fraud and gross negligence. by the courts. xxx” referred to in the
(2) The debtor is exempted from risk of loss preceding article, as
of the thing, which is borne by the in the ff. instances:
creditor. (1) That the plaintiff
(3) The expenses incurred by the debtor for himself has
the preservation of the thing after the contravened the
mora shall be chargeable to the creditor. terms of the contract
xxx”
(4) If the obligation bears interest, the debtor
does not have to pay from the time of Second infractor not Does not appear to
delay. liable for damages at consider which
all; only the first infractor first
(5) The creditor is liable for damages. infractor is liable, but committed the
(6) The debtor may relieve himself of the with his liability breach
obligation by consigning the thing. mitigated
[Tolentino]
Articles 1192 and 2215 are not irreconcilably
Compensatio morae – Delay of both parties in conflicting. The plaintiff referred to in Article
reciprocal obligations. 2215(1) should be deemed to be the second
infractor, while the one whose liability for
damages may be mitigated is the first
Effects: infractor. Furthermore, the directions to
equitably temper the liability of the first
1. Delay of the obligor cancels delay of infractor in Articles 1192 and 2215 are both
obligee (and vice versa) hence it is as if subject to the discretion of the court, despite
there is no default. the word "shall" in Article 1192, in the sense
2. The liability of the first infractor shall be that it is for the courts to decide what is
equitably tempered by the courts. If it equitable under the circumstances. (Ong v
cannot be determined which of the Bognalbal, 2006)
parties first violated the contract, the
same shall be deemed extinguished, and
each shall bear his own damages. [Art. C.3. FRAUD (DOLO) IN THE
1192] PERFORMANCE OF THE OBLIGATION
Art. 1171. Responsibility arising from fraud is
demandable in all obligations. Any waiver of
Cessation of the Effects of Mora: an action for future fraud is void.
(1) Express or implied renunciation by the
creditor;
Fraud (dolo) is the deliberate or intentional
(2) Prescription. [Tolentino] evasion of the normal fulfilment of an
obligation. [De Leon]
Equitable Tempering under Art. 1192 vs. Under A waiver of future fraud is void but past fraud
Art. 2215 [Ong v Bognalbal, 2006] may be subject of a valid waiver by the
aggrieved party. [De Leon]
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(3) The event renders it impossible for debtor E.3. RESCISSION (RESOLUTION IN
to fulfill his obligation in a normal RECIPROCAL OBLIGATIONS)
manner.
(4) The debtor must be free from any
Art. 1191. The power to rescind obligations is
negligence or participation in the
implied in reciprocal ones, in case one of the
aggravation of the injury to the creditor
obligors should not comply with what is
[Tolentino, 1987; De Leon, 2003]
incumbent upon him.
(5) It must be the sole cause, not merely a
The injured party may choose between the
proximate cause.
fulfillment and the rescission of the
obligation, with the payment of damages in
2. Act of Creditor: The debtor is also released either case. He may also seek rescission,
from liability when the non-performance of even after he has chosen fulfilment, if the
the obligation is due to the act of the creditor latter should become impossible.
himself. [Tolentino] The court shall decree the rescission
claimed, unless there be just cause
authorizing the fixing of a period.
E. REMEDIES AVAILABLE IN CASE OF This is understood to be without prejudice to
BREACH the rights of third persons who have
acquired the thing, in accordance with
articles 1385 and 1388 and the Mortgage
E.1. ACTION FOR SPECIFIC PERFORMANCE Law.
(IN OBLIGATION TO GIVE SPECIFIC THING)
The creditor has a right to compel the debtor Rescission
to perform the prestation.
The unmaking of a contract, or its undoing
from the beginning, and not merely its
termination [Pryce Corp v Pagcor, G.R. No.
Art. 1165, Par. 1 – When what is to be 157480, 2005]
delivered is a determinate thing, the
creditor, in addition to the right granted
him by Art. 1170 (indemnification for Right to Rescind
damages), may compel the debtor to
make the delivery. The power to rescind obligations is implied in
reciprocal ones, in case one of the obligors
should not comply with what is incumbent
upon him. The injured party may choose
between fulfillment and rescission of the
E.2. ACTION FOR SUBSTITUTED obligation, with payment of damages in
PERFORMANCE (IN OBLIGATION TO GIVE either case. The rescission on account of
GENERIC THING AND OBLIGATION TO DO) breach of stipulations is not predicated on
injury to economic interests of the party
plaintiff but on the breach of faith by the
Art. 1165, Par. 2 – If the thing is defendant, that violates the reciprocity
indeterminate or generic, he may ask that between the parties. [Universal Food
A third
the personbemay
obligation perform
complied withanother’s
at the
obligation Corporation v. CA, G.R. No. L-29155, 1970]
expense of to
thedeliver
debtor.a generic thing or an
obligation to do, unless it is a purely
personal act, at the expense of the debtor.
Effect of Rescission under Art 1191
Debtor cannot avoid obligation by paying
Extinguishes the obligatory relation as if it
damages if the creditor insists on
had never been created, the extinction having
performance.
a retroactive effect. Both parties must
surrender what they have respectively
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received and return each other as far as Applies only to Applies to either
practicable to their original situation. reciprocal obligations unilateral or
[Tolentino] where one party is reciprocal
Rescission may take place extrajudicially, by guilty of non- obligations even
declaration of the injured party. But if the fulfillment when the contract
debtor impugns the declaration of rescission, has been fully
fulfilled
it shall be subject to judicial determination. If
the debtor does not oppose the extrajudicial In some cases, court Court cannot grant a
declaration of rescission, such declaration may grant a term for period or term within
will produce legal effect. performance. which one must
The party who deems the contract violated comply.
may consider it resolved or rescinded, and act Non-performance by Non-performance by
accordingly, without previous court action, the other party is the other party is
but it proceeds at its own risk. For it is only important. immaterial.
the final judgment of the corresponding court
that will conclusively and finally settle
whether the action taken was or was not Distinguished from Termination [Pryce Corp v
correct in law. But the law definitely does not PAGCOR, 2005]
require that the contracting party who
believes itself injured must first file suit and
wait for a judgment before taking Rescission Termination
extrajudicial steps to protect its interest. [UP
v Delos Angeles, 1970] May be effected: May be effected by
mutual agreement or
Under Art 1191, the right to rescind an (a) by both parties by
by one party
obligation is predicated on the violation of mutual agreement,
exercising one of its
the reciprocity between parties, brought or
remedies as a
about by a breach of faith by one of them. (b) unilaterally by consequence of the
Rescission, however, is allowed only where one of them default of the other
the breach is substantial and fundamental to declaring a rescission
the fulfillment of the obligation. [Del Castillo without the consent
Vda de Mistica v Naguiat, 2003; Cannu v of the other if a
Galang, 2005]. legally sufficient
It will not be permitted in casual or slight ground exists or if a
breach. [Song Fo v. Hawaiian Philippines] decree of rescission is
applied for before the
courts
Distinguished from Rescission under Art. 1380 Requires mutual The parties are not
Rescission / Resolution restitution to restore restored to their
Rescission [Art. 1380] the parties to their original situation;
[Art. 1191]
original situation prior to termination,
Based on non- Based on lesion or parties are obliged to
performance or non- fraud upon creditors. comply with their
fulfillment of contractual
obligation. obligations
Action is instituted Action is instituted
only by the injured by either party or by
party. a third person.
Principal action, Subsidiary action, in E.4. DAMAGES, IN ANY EVENT
retaliatory in character. the absence of any Art. 1170. Those who in the performance of
other legal means to their obligations are guilty of fraud,
obtain reparation. negligence, or delay, and those who in any
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manner contravene the tenor thereof, are (4) The debtors assets are insufficient
liable for damages. (debtor is insolvent)
(5) The right of action is not purely personal
to the debtor
Right of the creditor to exercise all of the Rescission, which involves the right of the
rights and bring all the actions which his creditor to attack or impugn by means of
debtor may have against third persons. rescissory action any act of the debtor which
The creditors, after having pursued the is in fraud and to the prejudice of his rights as
property in possession of the debtor to satisfy creditor.
their claims, may exercise all the rights and
bring all the actions of the latter for the same
purpose, save those which are inherent in his Requisites [Cheng v CA, 2001]
person. [Art.1177] (1) There is a credit in favor of the plaintiff
In order to satisfy their claims against the prior to the alienation by the debtor
debtor, creditors have the ff. successive (2) The debtor has performed a subsequent
rights: contract conveying patrimonial benefit to
(1) To levy by attachment and execution third person/s.
upon all the property of the debtor, (3) The debtor’s acts are fraudulent to the
except those exempt from execution; prejudice of the creditor.
(2) To exercise all the rights and actions of (4) The creditor has no other legal remedy to
the debtor, except such are inherently satisfy his claim
personal to him; and
(5) The third person who received the
(3) To ask for the rescission of the contracts property is an accomplice to the fraud.
made by the debtor in fraud of their
rights.
An accion pauliana thus presupposes the
Requisites following:
(1) The person to whom the right of action 1) A judgment;
pertains must be indebted to the creditor 2) the issuance by the trial court of a writ of
(2) The debt is due and demandable execution for the satisfaction of the judgment,
and;
(3) The creditor must be prejudiced by the
failure of the debtor to collect his debts 3) the failure of the sheriff to enforce and
due him from third persons, either satisfy the judgment of the court.
through malice or negligence
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It requires that the creditor has exhausted the concerned, unless said payments were
property of the debtor. The date of the effected in virtue of the custom of the place.
decision of the trial court is immaterial. What
is important is that the credit of the plaintiff
antedates that of the fraudulent alienation by Vendor has right of action against possessor
the debtor of his property. After all, the whose right is derived from the vendee
decision of the trial court against the debtor
will retroact to the time when the debtor
became indebted to the creditor. [Cheng v CA, Art. 1608. The vendor may bring his action
2001] against every possessor whose right is
derived from the vendee, even if in the
second contract no mention should have
Accion Subrogatoria Accion Pauliana been made of the right to repurchase,
without prejudice to the provisions of the
Not necessary that Credit must exist Mortgage Law and the Land Registration
creditor’s claim is before the fraudulent Law with respect to third persons.
prior to the act [Tolentino]
acquisition of the
I. Laborer/materialsman has right of action
right by the debtor
Note: Commentators against owner of piece of work up to the
have conflicting amount owed by the latter to the contractor.
views on WoN new
debts contracted by
the debtor fall under Art. 1729. Those who put their labor upon or
the scope of accion furnish materials for a piece of work
pauliana. undertaken by the contractor have an action
against the owner up to the amount owing
No need for Fraudulent intent is
from the latter to the contractor at the time
fraudulent intent required if the
the claim is made. However, the following
contract rescinded is
shall not prejudice the laborers, employees
onerous
and furnishers of materials:
No period for Prescribes in 4 years
(1) Payments made by the owner to the
prescription from the discovery of
contractor before they are due;
the fraud
(2) Renunciation by the contractor of
any amount due him from the
(c) Other Specific Remedies owner.
This article is subject to the provisions of
special laws.
Accion Directa
Subsidiary liability of sublessee to the lessor
for rent due from the lessee. Article 1730. If it is agreed that the work shall
be accomplished to the satisfaction of the
proprietor, it is understood that in case of
Art. 1652. The sublessee is subsidiarily liable disagreement the question shall be subject
to the lessor for any rent due from the to expert judgment.
lessee. However, the sublessee shall not be
responsible beyond the amount of rent due
from him, in accordance with the terms of If the work is subject to the approval of a
the sublease, at the time of the extra-judicial third person, his decision shall be final,
demand by the lessor. except in case of fraud or manifest error.
Payments of rent in advance by the
sublessee shall be deemed not to have been
made, so far as the lessor's claim is
B. CONDITIONAL OBLIGATIONS
(1) As to effect
(a) Suspensive – Obligation shall only be
effective upon the fulfillment of the
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condition [1181]. The obligee acquires (2) External contingency that is lawfully
a mere hope or expectancy, protected within the control of the obligor [Taylor v
by law, upon the constitution of the Uy Tieng, 1922]
obligation.
(3) Obligor, in preventing the fulfilment of
the condition, acts pursuant to a right
Before Fulfillment After Fulfillment
The demandability The obligation arises B.3. PRINCIPLE OF RETROACTIVITY IN
and acquisition/ or becomes effective. SUSPENSIVE CONDITIONS
effectivity of the
II. The obligor can be Art. 1187, par 1.The effects of a conditional
rights arising from
compelled to comply obligation to give, once the condition has
the obligation is been fulfilled, shall retroact to the day of
with what is
suspended.
incumbent upon him. the constitution of the obligation.
The creditor may Nevertheless, when the obligation imposes
bring the appropriate reciprocal prestations upon the parties, the
actions for the fruits and interests during the pendency of
preservation of his the condition shall be deemed to have
right. Anything paid been mutually compensated. If the
by mistake may be obligation is unilateral, the debtor shall
recovered [Art 1188]. appropriate the fruits and interests
However, this received, unless from the nature and
excludes fruits and circumstances of the obligation it should
interests. be inferred that the intention of the person
constituting the same was different.
Rationale: Obligation is constituted when its
B.2. DOCTRINE OF CONSTRUCTIVE
essential elements concur. The condition
FULFILLMENT OF SUSPENSIVE
imposed is only an accidental element.
CONDITIONS
This applies to consensual contracts only.
Art. 1186. The condition shall be deemed
This does not apply to real contracts which
fulfilled when the obligor voluntarily can only be perfected by delivery.
prevents its fulfillment.
(2) If the thing is lost through the fault of VII. Improvement atVIII.the Improvement by the
the debtor, he shall be obliged to pay debtor’s expense, the thing’s nature or by
damages; it is understood that the debtor shall ONLY time shall inure to the
thing is lost when it perishes, or goes have usufructuary benefit of the creditor.
out of commerce, or disappears in rights.
such a way that its existence is
unknown or it cannot be recovered;
Upon the happening of the resolutory
(3) When the thing deteriorates without condition, the rules of Article 1189 shall be
the fault of the debtor, the impairment applied to the party who is bound to return
is to be borne by the creditor; (i.e. the creditor in the original obligation).
(4) If it deteriorates through the fault of
the debtor, the creditor may choose
between the rescission of the Impossible Conditions
obligation and its fulfillment, with Art. 1183. Impossible conditions, those
indemnity for damages in either case; contrary to good customs or public policy
(5) If the thing is improved by its nature, and those prohibited by law shall annul the
or by time, the improvement shall obligation which depends upon them. If the
inure to the benefit of the creditor; obligation is divisible, that part thereof
which is not affected by the impossible
(6) If it is improved at the expense of the or unlawful condition shall be valid.
debtor, he shall have no other right
than that granted to the usufructuary. The condition not to do an impossible thing
shall be considered as not having been
agreed upon.
Art. 1190, par 3. As for the obligations to do
and not to do, the provisions of the second
paragraph of article 1187 shall be observed In testaments (Art. 873) and donations (Art.
as regards the effect of the extinguishment 727), an unlawful or impossible condition
of the obligation. does not annul the transaction. The condition
is merely deemed not written.
(a) as soon as the obligation effective contracting parties from the fulfillment of
time expires or from the moment their respective obligations during the period.
(b) if it has become
(a) the time
indubitable that
indicated has Term/Period and Condition Distinguished
the event will not
elapsed, or
take place.
(b) if it has become Term/Period Condition
evident that the
event cannot IX. Interval of time which
X. Fact or event which is
occur. is future and certain future and uncertain
Must necessarilyXI. May or may not
Where no date of fulfilment is stipulated, come, although it happen
condition must be fulfilled within a may not be known
reasonable time or time probably when
contemplated according to the nature of the
obligation [Art. 1185, par 2]. XII. No effect on existence
XIII. Gives rise to an
of the obligation, only obligation or
its demandability or extinguishes one
C. OBLIGATIONS WITH A PERIOD OR performance already existing
TERM XIV. No retroactive effect
XV. Has retroactive effect
unless there is an
agreement to the
Art. 1193. Obligations for whose fulfillment a contrary
day certain has been fixed, shall be
XVI. When it is left XVII. When it is left
demandable only when that day comes.
exclusively to the will exclusively to the will
Obligations with a resolutory period take of the debtor, the of the debtor, the very
effect at once, but terminate upon arrival of existence of the existence of the
the day certain. obligation is not obligation is affected
A day certain is understood to be that which affected
must necessarily come, although it may not
be known when.
Kinds of Period [Art 1193]
If the uncertainty consists in whether the day
will come or not, the obligation is (1) Ex die – period with a suspensive effect.
conditional, and it shall be regulated by the Obligation becomes demandable after
rules of the preceding Section. the lapse of the period.
(2) In diem – period with a resolutory effect.
Obligation becomes demandable at once
Art. 1180. When the debtor binds himself to but is extinguished after the lapse of the
pay when his means permit him to do so, the period.
obligation shall be deemed to be one with a
(c)
period, subject to the provisions of Article
1197.
Effect of Advance Payment or Delivery
Period or Term: Interval of time, which either Art. 1195. Anything paid or delivered before
suspends demandability or produces the arrival of the period, the obligor being
extinguishment. unaware of the period or believing that the
obligation has become due and
The period must be: future, certain, and
demandable, may be recovered, with the
possible.[Tolentino]
fruits and interests.
A fortuitous event does not interrupt the
running of the period. It only relieves the
This is in contrast to payment by mistake of (3) When by his own acts he has impaired
the obligor before the occurrence of the said guaranties or securities after their
suspensive condition, where fruits and establishment, and when through a
interests may no longer be recovered. fortuitous event they disappear, unless he
immediately gives new ones equally
satisfactory;
Loss, Deterioration, or Improvement of the
(4) When the debtor violates any
Thing Before Period Expires
undertaking, in consideration of which
Art. 1194. In case of loss, deterioration or the creditor agreed to the period;
improvement of the thing before the arrival
(5) When the debtor attempts to abscond
of the day certain, the rules in Article 1189
[Art. 1198]
shall be observed.
(6) When required by law or stipulation;
(7) If parties stipulated an acceleration
clause [Tolentino]
Benefit of the Period The obligation immediately becomes due and
Art. 1196. Whenever in an obligation a period demandable even if the period has not yet
is designated, it is presumed to have been expired. The obligation becomes a pure one.
established for the benefit of both the [Tolentino]
creditor and the debtor, unless from the
tenor of the same or other circumstances it
should appear that the period has been When Courts May Fix Period
established in favor of one or of the other. Art. 1197. If the obligation does not fix a
period, but from its nature and the
circumstances it can be inferred that a
Period for the benefit of either creditor or period was intended, the courts may fix the
debtor duration thereof.
Creditor Debtor The courts shall also fix the duration of the
XVIII. Creditor may demand
XIX. Debtor may oppose period when it depends upon the will of the
the fulfillment or any premature debtor.
performance of the demand on the part of In every case, the courts shall determine
obligation at any time the obligee for the such period as may under the circumstances
but the obligor performance of the have been probably contemplated by the
cannot compel him to obligation, or if he so parties. Once fixed by the courts, the period
accept payment desires, he may cannot be changed by them.
before the expiration renounce the benefit
of the period. of the period by
performing his General Rule: The court is not authorized to fix
obligation in advance. a period for the parties [De Leon]
If the period is for the benefit of the debtor Exceptions: If the Court determines that one
alone, he shall lose every right to make use of of the 3 circumstances are present, it must
it decide the period “probably contemplated by
(1) When after the obligation has been the parties” [Araneta v. Phil. Sugar Estates,
contracted, he becomes insolvent, unless 1967]
he gives a guaranty or security for the (a) obligation does not fix a period, but
debt; from its nature and circumstances, it
(2) When he does not furnish to the creditor can be inferred that a period was
the guaranties or securities which he has intended
promised;
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Selection may be implied from the fact of (1) The person with the right of choice has
performance [Tolentino] communicated his choice [Arts. 1201, 1205
par 1]
(2) Only one prestation is practicable [Art.
Consent of other party 1202]
The law does not require the other party to
consent to the choice made by the party
entitled to choose. The only possible Loss of Specific Things or Impossibility of
exception is when the debtor has chosen a Performance of Prestations in an Alternative
prestation which could not have been the Obligation
object of the obligation; the creditor’s
consent would bring about a novation of the
obligation [Ibid.]
service which become Only one prestation is agreed upon, but the
impossible, plus obligor may render another in substitution.
damages other than [Art. 1206]
the value may also be
awarded
Loss or deterioration of Substitute in
Some prestations lost/impossible Facultative Obligations [Art. 1206]
Debtor to perform Debtor to perform Before Substitution is After Substitution is
that which he shall that which the debtor Made Made
choose from among shall choose from
the remainder. among the If due to bad faith or The loss or
remainder, without fraud of obligor: deterioration of the
liability for damages. obligor is liable. substitute on
account of the
One prestation remains XXXIII.
obligor’s delay,
Debtor to perform Debtor to perform XXXIV. negligence, or fraud,
that which remains. that which remains. renders the obligor
XXXV.
liable because once
If due to the the substitution is
If Creditor’s Choice [Art. 1205] negligence of the made, the obligation
obligor: obligor is not is converted into a
Fortuitous Event Debtor’s Fault liable. simple one with the
All prestations lost/impossible substituted thing as
XXXVI.
the object of the
Debtor is released Creditor may claim obligation.
from the obligation. the price/value of
any of them, with
indemnity for E. DIVISIBLE AND INDIVISIBLE
damages. OBLIGATIONS
Some prestations lost/impossible
Debtor to deliver that Creditor may claim Divisible Obligations
which he shall any of those
choose from among subsisting without a Ones which are susceptible of partial
the remainder. right to damages OR performance, that is, the debtor can legally
price/value of the perform the obligation by parts and the
thing lost, with right creditor cannot demand a single performance
to damages. of the entire obligation [Tolentino]
work, the accomplishment of work by If the principal obligation is void, the penal
metrical units, or analogous things which clause shall also be void. However, the nullity
by their nature are susceptible of partial of the penal clause does not carry with it the
performance, it shall be divisible [Art.1225, nullity of the principal obligation [Art.1230].
par. 2].
(3) Even though the object or service may be
Purposes of Penalty
physically divisible, an obligation is
indivisible if so provided by law or (1) Funcion coercitiva de garantia - to insure
intended by the parties. the performance of the obligation.
(4) In obligations not to do, divisibility or (2) Funcion liquidatoria - to liquidate the
indivisibility shall be determined by the amount of damages to be awarded to the
character of the prestation in each injured party in case of breach of the
particular case. principal obligation (compensatory).
(5) A joint indivisible obligation gives rise to (3) Funcion restrictamente penal - to punish
indemnity for damages from the time any the obligor in case of breach of the
one of the debtors does not comply with principal obligation (punitive).
his undertaking [Art. 1224].
Rules on Penalty
Effect
(1) The penalty shall substitute the
Creditor cannot be compelled to receive indemnity for damages and payment of
partially the prestation in which the interest in case of non-compliance [Art.
obligation consists; neither may the debtor 1226], UNLESS:
be required to make the partial payment [Art.
a. There is an express provision
1248], UNLESS:
to that effect
(1) The obligation expressly stipulates the b. The obligor refuses to pay the
contrary. penalty
c. The obligor is guilty of fraud
(2) The different prestations constituting the
in non-fulfillment
objects of the obligation are subject to
different terms and conditions. In this case, damages and interest aside
from the penalty may be awarded
(3) The obligation is in part liquidated and in
[Tolentino]
part unliquidated.
(2) Debtor cannot exempt himself from the
performance of the principal obligation
Cessation of Indivisibility
by paying the stipulated penalty UNLESS
a) By conversion of the obligation into this right has been expressly reserved for
an obligation to pay damages him [Art. 1227].
b) By novation of the obligation (3) Creditor cannot demand the fulfillment of
the principal obligation and demanding
c) By death of creditor or the debtor
the satisfaction of the penalty at the
(division among heirs of the
same time UNLESS the right has been
deceased)
clearly granted to him [Art. 1227]. A tacit
or implied grant is admissible.
F. OBLIGATIONS WITH A PENAL a. If the creditor chooses to demand
CLAUSE the satisfaction of the penalty, he
cannot afterwards demand the
fulfillment of the obligation.
Penal Clause b. If there was fault on the part of the
An accessory undertaking to assume greater debtor, creditor may demand not
liability in case of breach.
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only the satisfaction of the penalty (2) If the principal obligation has been
but also the payment of damages. irregularly complied with.
c. If the creditor has chosen to demand
(3) If the penalty is iniquitous or
the fulfillment of the principal
unconscionable, even if there has been no
obligation and the performance
performance.
thereof becomes impossible without
his fault, he may still demand the
satisfaction of the penalty.
The question of whether a penalty is
reasonable or iniquitous can be partly
Enforcement of the Penalty subjective and partly objective. Its resolution
would depend on such factor as, but not
The enforcement of the penalty can be
necessarily confined to, the type, extent and
demanded by the creditor only when the non-
purpose of the penalty, the nature of the
performance is due to the fault or fraud of the
obligation, the mode of breach and its
debtor. However, the creditor does not have
consequences, the supervening realities, the
to prove fault or fraud, since the non-
standing and relationship of the parties, and
performance gives rise to the presumption of
the like, the application of which, by and
fault. Thus, the burden of proof to show that
large, is addressed to the sound discretion of
non-performance was due to force majeure or
the court. [Ligutan v CA, G.R. No. 138677,
creditor’s acts lies with the debtor.
2002]
[Tolentino]
Liquidated damages
The penalty is exactly identical with what is
known as “liquidated damages” in Art. 2226.
In cases where there has been partial or
irregular compliance, as in this case, there
will be no substantial difference between a
penalty and liquidated damages insofar as
legal results are concerned and either may be
recovered without the necessity of proving
actual damages and both may be reduced
when proper. [Filinvest v CA, G.R. No.138980,
2005]
enforced only by proceeding against all the corresponding portion of the price of the
debtors. If one of the latter should be thing or of the value of the service in which
insolvent, the others shall not be liable for the obligation consists.
his share.
If one or some of the creditors demands the The act of a joint creditor which would
prestation, the debtor may legally refuse to ordinarily interrupt the period of prescription
deliver to them. He can insist that all the would not have an effect on prescription
creditors together receive the thing, and if because the indivisible character of the
any of them refuses to join the others, the obligation requires collective action of the
debtor may deposit the thing in court by way creditors. Hence, the act of one alone is
of consignation. [Tolentino] ineffective to interrupt prescription
[Tolentino]
Solidarity may exist although the creditors All debtors are liable Only the debtors
and the debtors may not be bound in the for breach guilty of breach of
same manner and by the same periods and committed by a co- obligation liable for
conditions. [Art. 1211] debtor damages
All debtors are Other debtors are
Terms used for Solidary Obligations proportionately not liable if one
liable for insolvency debtor is insolvent
(1) Mancomunada solidaria of one debtor
(2) Joint and several
(3) In solidum Kinds of Solidary Obligations
(4) Juntos o separamende As to Source
(5) “I promise to pay”, followed by signatures (1) Legal – imposed by law
of two or more persons
(2) Conventional – agreed upon by parties
(6) Individually and collectively
(3) Real – imposed by the nature of the
(7) Individually liable obligation
(8) Individually and jointly liable
As to Parties Bound
Distinguished from Indivisibility (1) Active (solidarity among creditors) – Each
Art. 1210. The indivisibility of an obligation creditor has the authority to claim and
does not necessarily give rise to solidarity. enforce the rights of all, with the resulting
Nor does solidarity of itself imply obligation of paying everyone what
indivisibility. belongs to him.
(2) Passive (solidarity among debtors) – Each
debtor can be made to answer for the
Solidarity Indivisibility others, with the right on the part of the
debtor-payor to recover from the others
Refers to the legal Refers to the
their respective shares.
tie (vinculum juris), prestation that is not
and consequently to capable of partial (3) Mixed (solidarity among creditors and
the subjects or performance debtors) – Solidarity is not destroyed by
parties of the the fact that the obligation of each debtor
obligation is subject to different conditions or
periods. The creditor can commence an
More than one Exists even if there is
action against anyone of the debtors for
creditor or more only one creditor
the compliance with the entire obligation
than one debtor and/or one debtor
minus the portion or share which
(plurality of subjects)
corresponds to the debtor affected by the
Each creditor may Each creditor cannot condition or period.
demand the entire demand more than
prestation and each his share and each
debtor is bound to debtor is not bound As to Uniformity
pay the entire to pay more than his (1) Uniform – Parties are bound by the same
prestation share conditions or terms
Effect of breach: Effect of breach: (2) Non-uniform – Parties are bound by
Solidarity remains Obligation is different conditions or terms
converted to
indemnity for
damages Active Solidary Obligation (among creditors)
Art. 1214. The debtor may pay any one of the Art. 1216. The creditor may proceed against
solidary creditors; but if any demand, any one of the solidary debtors or some or
judicial or extrajudicial, has been made by all of them simultaneously. The demand
one of them, payment should be made to made against one of them shall not be an
him. obstacle to those which may subsequently
be directed against the others, so long as
the debt has not been fully collected.
A relationship of mutual agency is created
among co-creditors.
Art. 1217. Payment made by one of the
solidary debtors extinguishes the obligation.
Effects of Active Solidarity [Tolentino] If two or more solidary debtors offer to pay,
(1) Death of solidary creditor does not the creditor may choose which offer to
transmit solidarity to his heirs but rather accept.
to all of them taken together (joint) He who made the payment may claim from
(2) Each represents the other in receiving his co-debtors only the share which
payment and all other advantageous acts corresponds to each, with the interest for the
(i.e. interrupt prescription and render the payment already made. If the payment is
debtor in default for the benefit of all made before the debt is due, no interest for
creditors) the intervening period may be demanded.
(3) Each one of the solidary creditors may do When one of the solidary debtors cannot,
whatever may be useful to the others, but because of his insolvency, reimburse his
not anything which may be prejudicial to share to the debtor paying the obligation,
the latter. [Art. 1212] such share shall be borne by all his co-
debtors, in proportion to the debt of each.
(4) One creditor does NOT represent all
others in acts such as novation (even if
advantageous), compensation and Art. 1222. A solidary debtor may, in actions
remission. In this case, even if debtor is filed by the creditor, avail himself of all
released, the other creditors can still defenses which are derived from the nature
enforce their rights against the creditor of the obligation and of those which are
who made the novation, compensation or personal to him, or pertain to his own share.
remission [Art. 1215, par. 2] With respect to those which personally
(5) The creditor who collects the debt, shall belong to the others, he may avail himself
be liable to the others for the share in the thereof only as regards that part of the debt
obligation corresponding to them. [Art. for which the latter are responsible.
1215, par 2]
(6) The credit is divided equally among them, A relationship of mutual guaranty is created
unless agreement to the contrary. among co-debtors.
(7) Debtor may pay any one of the solidary
creditors; but if any demand, judicial or
extrajudicial, has been made by one of Effects of Passive Solidarity [Tolentino]
them, payment should be made to him (1) Each debtor can be required to pay the
who demanded [Art. 1214] entire obligation, but after payment he
can recover from the co-creditors their
A solidary creditor cannot assign his rights respective shares
without the consent of the others [Art. 1213]. (2) Each debtor may set up his own claims
Such an assignment produces no effect against the creditor as payment of the
whatsoever obligation
(3) Remission of the entire debt affects all
Passive Solidary Obligation debtors, but when remission is limited to
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the share of one debtor, the other debtors defendant debtor from liability to the
are still liable for the balance of the creditor
obligation
(3) Those pertaining to his own share
a. The remission of the whole
(4) Those personally belonging to other
obligation, obtained by one of
co-debtors but only as regards that
the solidary debtors, does not
part of the debt for which the latter are
entitle him to reimbursement
responsible.
from his co-debtors. [Art.
1220]
b. The remission made by the Comparing demand upon Solidary Debtor and
creditor of the share which Payment by a Solidary Debtor
affects one of the solidary
Demand Upon a Payment by a
debtors does not release the
Solidary Debtor Solidary Debtor
latter from his responsibility
towards the co-debtors, in The demand made Full payment made
case the debt had been against one of them by one of the solidary
totally paid by anyone of shall not be an debtors extinguishes
them before the remission obstacle to those the obligation [Art.
was effected. [Art. 1219] which may 1217].
subsequently be
(4) All debtors are liable for the loss of the
directed against the
thing due, even if only one of them is at
others so long as the
fault, or after incurring delay it is lost by
debt has not been
fortuitous event
fully collected [Art.
(5) Interruption of prescription as to one 1216].
debtor affects all others, but renunciation
of prescription already had does not The creditor may If two or more
prejudice the others. (Reason: proceed against any solidary debtors offer
prescription extinguishes the mutual one of the solidary to pay, the creditor
representation among solidary debtors) debtors or all may choose which
simultaneously [Art. offer to accept [Art.
(6) Interests due by delay of one is borne by 1216]. 1217].
all of them
A creditor’s right to The solidary debtor
proceed against the who made the
Defenses Available to a Solidary Debtor [Art. surety exists payment shall have
1222] independently of his the right to claim
(1) Those derived from the nature of the right to proceed from his co-debtors
obligation against the principal the share which
corresponds to them
a. Defenses inherent in an obligation with interest,
include non-existence of the obligation UNLESS barred by
because of absolute simulation or illicit prescription or
object, nullity due to defect in capacity or illegality [Art. 1218].
consent of all debtors, unenforceability,
non-performance of suspension condition
or non-arrival of period, extinguishment Art 2047 specifically calls for the application
of the obligation, res judicata, and of the provisions on solidary obligations to
prescription. suretyship contracts. In particular, Art 1217
(2) Those personal to him recognizes the right of reimbursement from a
co-debtor in favor of the one who paid (i.e.,
a. Personal defenses such as minority, the surety). In contrast, Art 1218 is definitive
insanity, fraud, violence, or intimidation on when reimbursement is unavailing, such
will serve as a complete exemption of the that only those payments made after the
obligation has prescribed or became illegal event the payment of damages and
shall not entitle a solidary debtor to after one interest, without prejudice to
reimbursement. [Diamond Builders v Country incurred their action against the guilty or
Bankers, 2007] in delay negligent debtor.
(1) If after the payment, the third person Such currency which in a given jurisdiction
acquires the creditor's rights can be used in the payment of debts, and
(SUBROGATION); which cannot be refused by the creditor.
(2) If the creditor ratifies the payment to the When payment not in legal tender is accepted
third person (RATIFICATION); by the creditor:
(4) Acceptance of the cession by the creditors payment or because of some circumstances
[Art. 1255] which render direct payment to the creditor
impossible or inadvisable.
Debtor is released only for the net proceeds (1) Principal act which constitutes a form
unless there is a stipulation to the contrary. of payment
(2) Judicial in character
Cession and Dation Distinguished
Requisites of consignation
Cession Dacion en pago
(1) There is a debt due
Plurality of creditors One creditor
(2) Consignation is made because of some
Debtor must be Debtor not legal cause
partially or relatively necessarily in state
insolvent of financial difficulty a. There was tender of payment and
creditor refuses without just cause
Universality of Thing delivered is to accept it
property is ceded equivalent of b. Instances when consignation
performance alone would suffice as provided
Merely releases Extinguishes under Art. 1256
debtor for the net obligation to the (3) Previous notice of consignation was given
proceeds of things extent of the value to those persons interested in the
ceded or assigned, of the thing performance of the obligation
unless there is delivered, as agreed
contrary intention upon, proved or (4) Amount or thing due was placed at the
implied from the disposal of the court
conduct of the (5) After the consignation has been made,
creditor the persons interested were notified
Involves all Does not involve all thereof
properties of debtor properties of debtor
Creditor does not Creditor becomes When tender and refusal not required [Art.
become owner of the owner 1256]
ceded property
(1) Creditor is absent or unknown, or does
not appear at the place of payment.
(2) Creditor is incapacitated to receive the
A.4. TENDER OF PAYMENT AND thing due at the time of payment.
CONSIGNATION (3) Without just cause, creditor refuses to
give receipt.
Tender of payment: Manifestation made by (4) Two or more persons claim the same
the debtor to the creditor of his desire to right to collect (i.e. Interpleader)
comply with his obligation, with offer of (5) Title of the obligation has been lost.
immediate performance.
(1) Preparatory act to consignation
Unless there is an unjust refusal by a creditor
(2) Extrajudicial in character to accept payment from a debtor, Article 1256
cannot apply. The possession of the property
Consignation: Deposit of the object of by the petitioners being by mere tolerance as
obligation in a competent court in they failed to establish the existence of any
accordance with the rules prescribed by law contractual relations between them and the
whenever the creditor unjustly refuses respondent, the bank deposit made by the
petitioners intended as consignation has no
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A thing is lost when it perishes, goes out of (8) Bailee in commodatum: saves his own
commerce or disappears in such a way that thing and not the thing of the creditor, etc.
its existence is unknown or it cannot be [Art. 1942].
recovered [Art. 1189, no. 2] (9) Depositary in deposit for certain
instances [Art. 1979].
Where there is no physical or legal loss, but or in such part of the same to which remission
the thing belongs to another, the refers.
performance by the debtor becomes
impossible. The debtor must indemnify the
creditor for damages. Requisites:
(1) Debt must be existing and demandable.
Partial Impossibility (2) Renunciation must be gratuitous.
Courts shall determine whether it is so (3) Debtor must accept the remission. [Art.
important as to extinguish the obligation. 1270]
(1) If debtor has performed part of the
obligation when impossibility occurred,
If the renunciation is not gratuitous, the
creditor must pay the part done as long
nature of the act changes and it may be:
as he benefits from it.
(2) If debtor received full payment from (1) Dation in payment – when the creditor
creditor, he must return excess amount receives a thing different from that
corresponding to part which was stipulated;
impossible to perform. (2) Novation – when the object or principal
conditions of the obligation have
Doctrine of Unforeseen Events changed;
Art. 1267. When the service has become so (3) Compromise – when the matter
difficult as to be manifestly beyond the renounced is in litigation or dispute and
contemplation of all the parties, the obligor in exchange of some concession which
may also be released therefrom, in whole or the creditor receives.
in part.
C. CONDONATION As to Form
1. Express
Condonation or Remission of the Debt 2. Implied
An act of liberality, by virtue of which, without Art. 1270. Condonation or remission is
receiving any equivalent, the creditor essentially gratuitous, and requires the
renounces the enforcement of the obligation. acceptance by the obligor. It may be made
The obligation is extinguished either in whole expressly or impliedly.
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One and the other kind shall be subject to the Confusion: The meeting in one person of the
rules which govern inofficious donations. qualities of creditor and debtor of the same
Express condonation shall, furthermore, obligation.
comply with the forms of donation.
Requisites
1. Express Condonation (1) It should take place between principal
Made formally: in accordance with debtor and creditor. [Art 1276]
forms of ordinary donations. [Art. (2) The very same obligation must be
1270] involved;
An express remission must be (3) The confusion must be total, i.e. as
accepted in order to be effective. regards the whole obligation.
When the debt refers to movable or
personal property, Art 748 will
govern; if it refers to immovable or Effects
real property, Art 749 applies. (1) In general
Art. 1275. The obligation is extinguished from
2. Implied Condonation the time the characters of the debtor and
creditor are merged in the same person.
Inferred from the acts of the parties.
Compensation Confusion
Compensation: Offsetting of two obligations There must always Involves only one
which are reciprocally extinguished if they are be two obligations. obligation.
of the same value, or extinguished to the
concurrent amount if of different values.
There are two There is only one
persons who are person whom the
Requisites [Art. 1279] mutually debtors characters of the
(1) Each obligor is bound principally, and at and creditors of each creditor and debtor
the same time a principal creditor of the other in two separate meet.
other obligations, each
arising from the
(2) Both debts must consist in a sum of
same cause.
money, or if the things due are fungible,
of the same kind & quality
Note: The term ‘consumable’ is Compensation Payment
erroneously used in Art 1279. The
appropriate term is ‘fungible’. Capacity to dispose Requires capacity to
[Tolentino] and receive the thing dispose of the thing
is unnecessary since paid and capacity to
(3) Both debts are due compensation receive
(4) Debts are liquidated and demandable operates by law
Since it takes place ipso jure, when used as a mutual extinguishment of their credits
defense, it retroacts to the date when all its [United Planters v CA, 2009].
requisites are fulfilled.
becomes obligation exists exists when they can stand together. Hence,
demandable there is no novation. Incompatibility exists
when they cannot stand together. Hence,
(b) Fulfillment of
(b) Demandability there is novation.
condition
shall be subject to
concerning the
fulfillment/
original For there to be implied novation, the changes
nonfulfillment of
obligation: old
the condition must be essential, i.e. referring to the object,
obligation is cause, or principal conditions of the
affecting it
revived; new obligation.
obligation loses
force
(c) Fulfillment of As to effect
condition (1) Total
concerning the
new obligation: (2) Partial
no novation; Total Partial
requisite of a
previous valid and (1) Transfers to the A creditor, to
effective person subrogated the whom partial
obligation lacking credit with all the payment has
rights thereto been made, may
appertaining, either exercise his right
against the debtor or for the
third persons. remainder, and
Kinds of Novation
shall be
(2) Obligation is not
preferred to the
extinguished, even if
person
As to form the intention is to pay
subrogated in his
it.
(1) Express place in virtue of
(3) Defenses against the the partial
(2) Implied
old creditor are payment.
AS TO FORM retained, unless
waived by the debtor.
Express – Implied – the old and
declared in an new obligations are
unequivocal on every point As to essence or object
terms incompatible with
each other (1) Objective/ Real
(2) Subjective/ Personal
AS TO ESSENCE OR OBJECT
Novation is not presumed
Objective/Real Subjective/Personal
In the absence of an unequivocal declaration
of extinguishment of the pre-existing
obligation, only proof of incompatibility
a. Change of the a. Substitution of
between the old and new obligation would
subject matter; debtors
warrant a novation by implication. [California
Bus Line vs. State Investment, 2003] b. Change of cause i. Expromision
or consideration; or
ii. Delegacion
c. Change of the
Test of Incompatibility b. Subrogation of a
principal conditions
third person to the
Whether or not the old and new obligation or terms
rights of the
can stand together, each one having an
independent existence. No incompatibility
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Expromision Delegacion
For subjective novation, it is insufficient that
Initiative for change Debtor (delegante) the juridical relation between the parties to
does not emanate offers or initiates the the original contract is extended to a third
from the debtor, and change, and the person. If the old debtor is not released, no
may even be made creditor (delegatorio) novation occurs and the third person who has
without his accepts a third assumed the debtor’s obligation becomes
knowledge. person (delegado) as merely a co-debtor or surety or co-surety.
consenting to the [Conchinyan, Jr. v. R&B Surety and Insurance
substitution. Company, 1987]
Requisites
(1) Consent of the Consent of old An accessory surety may not be released if he
creditor and the debtor, new debtor, expressly waives his discharge from the
new debtor. and creditor. obligation in case of change or novation in
(2) Knowledge or the original agreement [Molino v Security
consent of the old Diners International Corp, 2001].
debtor is not
required.
Effects
b. Subrogation
(1) Old debtor is (1) Insolvency of the
released new debtor Transfers to the person subrogated the credit
revives the with all the rights thereto appertaining, either
(2) Insolvency of the against the debtor or against third persons,
obligation of the
new debtor does be they guarantors or possessors of
old debtor if it was
not revive the old mortgages, subject to stipulation in a
anterior and
obligation in case conventional subrogation. [Art. 1303]
public, and known
the old debtor did
to the old debtor.
not agree to
expromision. (2)New debtor can i. Conventional Subrogation – takes place by
demand agreement of parties
(3) If with knowledge
reimbursement of
and consent of the
the entire amount
old debtor, the Difference between Conventional Subrogation
he has paid from
new debtor can and Assignment of Credit [Licaros v Gatmaitan,
the original
demand 2001]
debtor. He may
reimbursement of
compel the
the entire amount
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Conventional
Assignment of credit
subrogation
Debtor’s consent is Debtor’s consent is not
necessary. required.
Extinguishes an Refers to the same right
obligation and which passes from one
gives rise to a new person to another,
one. without modifying or
extinguishing the
obligation.
Defects/vices in Defects/vices in the old
the old obligation obligation are not
are cured. cured.
CIVIL LAW
CONTRACTS
A. PRINCIPAL CHARACTERISTICS OF
CONTRACTS (MARCO) A.2. AUTONOMY (ALSO FREEDOM TO
CONTRACT)
iii. The stipulation favoring the third iii. Interference by third person without
person is only a part of the contract. legal justification or excuse. [Lagon v
CA, G.R. No. 119107 (2005)]
iv. No relation of agency exists between
any of the parties and the third (1) The word "induce" refers to situations
person favored. where a person causes another to choose
one course of conduct by persuasion or
intimidation.
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b. Special or formal – required by law to (i) Do ut des (I give so that you may
be in certain specified form give)
(5) To cause/by equivalence of prestations (ii) Do ut facias (I give so that you
may do)
a. Onerous – there is an exchange of
correlative values, e. g. sale (iii) Facio ut facias (I do so that you
may do)
b. Remuneratory – where the
outstanding prestation is premised (iv) Facio ut des (I do so that you may
upon services or benefits already give)
received
c. Gratuitous – where no correlative Art. 1307. Innominate contracts shall be
prestation is received by one party, e. regulated by the stipulations of the parties,
g. donation, commodatum by the provisions of Titles I and II of this
Book, by the rules governing the most
(6) To purpose analogous nominate contracts, and by the
a. Transfer of ownership, e.g. sale customs of the place
b. Innominate – where the contract has (3) It must be intelligent, free, spontaneous,
no special name and real (not vitiated) [Arts. 1330-1346]
(2) Directed and communicated to the A preparatory contract in which one party
offeror and learned by him [Art. 1319] If grants to the other, for a fixed period, the
made through an agent, the offer is option to decide whether or not to enter into
accepted from the time the acceptance is a principal contract [Art. 1324]
communicated to such agent. [Art. 1322]
It binds the party who has given the option
(3) Made within the proper time not to enter into the principal contract with
any other person during the person
(4) May be express/implied, but is not
designated, and within that period, to enter
presumed
into such contract to whom the option was
granted if the latter should decide to use the
Acceptance must be absolute, unconditional, option. [Tolentino]
and without variance of any sort from the
offer. It must also be made known to the
offeror. An acceptance not made in the With consideration Without consideration
manner prescribed is not effective but
constitutes a counter-offer. [Malbarosa v. CA, Offeror cannot Offeror may withdraw
2003] unilaterally withdraw by communicating
his offer. withdrawal to the
offeree before
Contracts are perfected by mere consent acceptance.
Contracts are perfected by mere consent, and
from that moment the parties are bound not
Art. 1324 provides the general rule regarding
only to the fulfillment of what has been
offer and acceptance: when the offerer gives
expressly stipulated but also to all the to the offeree a certain period to accept, "the
consequences which, according to their offer may be withdrawn at any time before
nature, may be in keeping with good faith, acceptance" except when the option is
usage and law. [Art. 1315]
founded upon consideration.
However, Art. 1479 modifies the general rule,
Exceptions: which applies to "a promise to buy and sell"
specifically. This rule requires that a promise
(1) Real contracts, such as deposit, pledge
to sell to be valid must be supported by a
and commodatum, are not perfected
consideration distinct from the price. The
until the delivery of the object of the
option can still be withdrawn, even if
obligation [Art. 1316]
accepted, if the same is not supported by any
(2) Formal contracts, where the law requires consideration. [Tuazon v. Del Rosario-Suarez,
that a contract be in some form or be 2010]
proved in a certain way; the intent of the
parties have to be accompanied by the
requisite formality [Art. 1356] Capacity to Contract
There are two types of void contracts:
Cognition Theory (1) Those where one of the essential requisites
Acceptance made by a letter or telegram of a valid contract as provided for by Article
does not bind the offeror except from the 1318 of the Civil Code is totally wanting; and
time it came to his knowledge. The contract, (2) Those declared to be so under Article
in such a case, is presumed to have been
1409 of the Civil Code. By contrast, a voidable
entered into in the place where the offer was
or annullable contract is one in which the
made. [Art. 1319, 2nd par.]
essential requisites for validity under Article
1318 are present, but vitiated by want of
capacity, error, violence, intimidation, undue
Option Contract
influence, or deceit. [Francisco v. Pastor
Herrera, 2000]
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Mistake
Inadvertent and excusable disregard of a Mistake which vitiates consent is an error of
circumstance material to the contract [Reyes fact, and not an error of law. Ignorance of the
and Puno] law excuses no one from compliance
therewith [Art. 3]; but the modern tendency is
In order that mistake may invalidate consent,
to allow an excusable mistake of law to be
it should refer to the substance of the thing
invoked as vitiating consent. [Tolentino]
which is the object of the contract, or to those
conditions which have principally moved one
or both parties to enter into the contract.
See also Art. 526, on Possession: Mistake
[Art.1331] There is no mistake if the party
upon a doubtful or difficult question of law
alleging it knew the doubt, contingency or
may be the basis of good faith.
risk affecting the object of the contract. [Art.
1333]
To invalidate consent, the error must be Ignorantia Facti Excusat vs. Ignorantia Legis
excusable. It must be real error, and not one Neminem Excusat
that could have been avoided by the party
Mistake of Fact Mistake of Law
alleging it. An error so patent and obvious
that nobody could have made it, or one which One or both One or both parties
could have been avoided by ordinary contracting parties arrive at an erroneous
prudence, cannot be invoked by the one who believe that a fact conclusion on the
made it in order to annul his contract. A exists when in reality interpretation of a
mistake that is caused by manifest it does not, or vice question of law or its
negligence cannot invalidate a juridical act. versa legal effects
[Tolentino]
Vitiates consent Does not vitiate
consent EXCEPT
Requisites: when it involves
mutual error as to the
a. The error must be substantial regarding: effect of an
(1) The object of the contract (error in re) agreement when the
which may be: real purpose is
frustrated.
i. Mistake as to the identity of the thing
(error in corpore)
ii. Mistake as to the substance of the Note: The obligation to show that the terms
thing (error in substantia) of the contract had been fully explained to
the party who is unable to read or understand
iii. Mistake as to the conditions of the the language of the contract, when fraud or
thing provided, or mistake is alleged, devolves on the party
iv. Mistake as to the quantity of the thing seeking to enforce it. [Art. 1332]
(error in quantitate)
(2) The condition which primarily moved or Intimidation
induced one or both parties to enter the
contract. One of the contracting parties is compelled
by a reasonable and well-grounded fear of an
(3) Identity or qualifications of one of the imminent and grave evil upon his person or
parties (error in persona), but only if property, or upon the person or property of
such was the principal cause of the his spouse, descendants or ascendants, to
contract. give his consent
b. The error must be excusable To determine the degree of intimidation, the
c. The error must be a mistake of fact and not age, sex and condition of the person shall be
of law. borne in mind. [Art. 1335]
Art. 1340. The usual exaggerations in trade, Renders the contract Renders the party
when the other party had an opportunity to voidable liable for damages
know the facts, are not in themselves
fraudulent.
Dolo incidente (Incidental fraud, Article 1344)
Those which are not serious in character and
Art. 1341. A mere expression of an opinion
without which the other party would still have
does not signify fraud, unless made by an entered into the contract.
expert and the other party has relied on the
former's special knowledge.
Dolo causante (Causal fraud)
Art. 1342. Misrepresentation by a third Determines or is the essential cause of the
person does not vitiate consent, unless such consent, while dolo incidente refers only to
misrepresentation has created substantial some particular or accident of the obligation.
mistake and the same is mutual. The effects of dolo causante are nullity of the
contract and indemnification of damages,
while dolo incidente obliges the person
Art. 1343. Misrepresentation made in good employing it to pay damages. [Tankeh v. DBP,
faith is not fraudulent but may constitute 2013]
error.
Fraud to vitiate consent must fulfill two
Requisites: conditions
(1) It must be made in Bad faith (1) The fraud must be dolo causante or it must
be fraud in obtaining the consent of the party.
(2) One party must have employed fraud The deceit must be serious. The fraud is
or insidious words or machinations serious when it is sufficient to impress, or to
(3) Damage or injury resulted to the lead an ordinarily prudent person into error;
other party that which cannot deceive a prudent person
cannot be a ground for nullity. The
(4) It must have been serious circumstances of each case should be
(5) It induced the other party to enter considered, taking into account the personal
into a contract conditions of the victim.
(6) It must have been employed by one (2) The fraud must be proven by clear and
contracting party upon the other and convincing evidence and not merely by a
not employed by both contracting preponderance thereof. [ECE Realty v.
parties nor by third persons. Mandap, 2014]
Dolo Causante vs. Dolo Incidente Note: However, fraud in its general sense
(false representation of a fact) coming about
Dolo Causante Dolo Incidente in the consummation stage of the sale, as
Refers to those Refers to those opposed to the negotiation and perfection
deceptions or deceptions or stages, entitles the aggrieved party to the
misrepresentations misrepresentations rescission of the sales contract. [Spouses
of a serious character which are not serious Tongson v. Emergency Pawnshop, 2010]
employed by one in character and
party and without without which the
which the other party other party would Simulation of Contracts
would not have have still entered into Takes place when the parties do not really
entered into the the contract want the contract they have executed to
contract produce the legal effects expressed by its
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wordings. It may be absolute or relative [Arts. valid and enforceable contract. [Manila
1345-1346] Banking v. Silverio, 2005]
The primary consideration in determining the If the parties [merely] state a false cause in
true nature of a contract is the intention of the contract to conceal their real agreement,
the parties. Such intention is determined not the contract is relatively simulated and the
only from the express terms of their parties are still bound by their real agreement.
agreement, but also from the Hence, where the essential requisites of a
contemporaneous and subsequent acts of the contract are present and the simulation refers
parties. [Spouses Lopez v. Spouses Lopez, only to the content or terms of the contract,
2009] the agreement is absolutely binding and
enforceable between the parties and their
successors in interest. [Valerio v. Refresca,
Requisites: 2006]
(1) A deliberate declaration contrary to the With respect to a third person acting in good
will of the parties; faith, the apparent contract must be
considered as the true contract. The
(2) Agreement of the parties to the
declaration that the contract is simulated
apparently valid act, and
does not prejudice him.
(3) The purpose is to deceive or to hide from
third persons although it is not necessary
that the purpose be illicit or for purposes Note: Relative simulation is presumed by law
of fraud in case of Art. 1602 (Contracts presumed to
be Equitable Mortgages)
Objective or juridical Psychological and Effect of Lack of Cause, Unlawful Cause, False
reason purely personal Cause and Lesion (Arts. 1352 – 1355)
reason
Cause Effect
Always the same for Differs for each
Lack of Cause – If there is no cause
each contracting contracting party
absence or total whatsoever, contract is
party
lack of cause VOID; a fictitious sale is
Illegality affects Illegality does not VOID.
existence or validity affect existence or Note: Cause must exist
of the contract validity of contract at the time of the
perfection of the
contract; it need not exist
Note: Motive becomes the cause when it later.
predetermines the purpose of the contract.
Contrary to law, If cause is unlawful,
morals, good transaction is VOID.
Cause in contracts [Art. 1350] customs, public
policy and public
Pure
Onerous Remuneratory order (unlawful If parts of a contract are
Beneficenc
Contracts Contracts cause) illegal but the rest are
e
supported by lawful
The The service or Mere cause, claimant of such
undertaking benefit which is liberality of has the burden of
or the remunerated the showing proof;
promise of benefactor otherwise, the whole
the thing or contract is VOID.
service by
the other
party Contract with illegal
cause may still produce
effect in certain cases
Moral Obligation as a Cause where parties are not of
equal guilt: (1) innocent
In Villaroel v. Estrada (1940), where a moral
party cannot be
obligation is based upon a previous civil
compelled to perform his
obligation which has already been barred by
obligation and he may
the statute of limitations at the time the
recover what has already
contract is entered into, it constitutes a
been given; (2) if both
sufficient cause or consideration to support a
parties are guilty, neither
contract (natural obligation).
can sue the other, the
law leaving them as they
are (in pari delicto).
BUT,
Falsity of cause – Contract with a false
In Fisher v. Robb (1939), if the moral
cause is stated cause is merely
obligation arises wholly from ethical
but is untrue revocable/voidable.
considerations, it cannot constitute a
sufficient cause to support an onerous
contract, as when the promise is made on the
Parties are given a
erroneous belief that one was morally
chance to show that a
responsible for the failure of an enterprise
cause really exists, and
(moral obligation).
that said cause is true
and lawful.
Lesion or Inadequacy of cause
Cause Effect
III. Form of Contracts
inadequacy of shall not invalidate the
cause – cause is contract except when: (1)
not proportionate there is fraud, mistake, GENERAL RULE:
to object undue influence (2) when
parties intended a Art. 1356, par. 1. Contracts shall be
donation obligatory, in whatever form they may have
been entered into, provided all the essential
requisites for their validity are present
Note: Inadequacy of cause may be a badge of • “Spiritual System” of the Spanish
fraud. Code: The law looks more on the
spirit rather than the form of
contracts
EXCEPTION:
(1) When the law requires that a contract be
in some form in order that it may be valid
or enforceable [Art. 1356, par. 2]
(2) When the law requires that a contract be
proved in a certain way to be enforceable
(Statute of Frauds) [Art. 1356, par. 2]
(3) When the law requires a contract to be in
some form for convenience [Art. 1357 and
1358]
acts and contracts enumerated in the (2) Enforceable under the Statute of Frauds
following article, the contracting parties may Enumerated contracts in Art. 1358 are valid
compel each other to observe that form, even when not reduced into writing, although
once the contract has been perfected. This parties may have recourse under Art. 1357 to
right may be exercised simultaneously with compel execution of the writing, except in the
the action upon the contract. following cases:
1) Solemn Contracts (action under Art.
Art. 1358, Civil Code. The following must 1357 is not available at all)
appear in a public document: 2) Real Contracts (action under Art. 1357
is available if there is consent, subject
Acts and contracts which have for their matter, cause, and delivery)
object the creation, transmission, 3) Contracts under the Statutes of Fraud
modification or extinguishment of real rights (remedy under Art. 1357 is applicable
over immovable property; sales of real only if the defense of the Statute is
property or of an interest therein a governed waived expressly or impliedly by the
by Articles 1403, No. 2, and 1405; party charged
The cession, repudiation or renunciation of • Action under this Article 1357 may be
hereditary rights or of those of the conjugal exercised simultaneously with (i.e. need
partnership of gains; not be separate nor need it precede) the
action to enforce the contract, although
The power to administer property, or any
questions of form must be decided first.
other power which has for its object an act
appearing or which should appear in a
public document, or should prejudice a third
person;
The cession of actions or rights proceeding
from an act appearing in a public document.
All other contracts where the amount
involved exceeds five hundred pesos must
appear in writing, even a private one. But
sales of goods, chattels or things in action
are governed by Articles, 1403, No. 2 and
1405.
Reformation of Annulment
Reformation – remedy in equity by means of Instrument
which a written instrument is made or
construed so as to express or conform to the Presupposes a valid, Presupposes a
real intention of the parties when some error existing contract, in defective contract in
or mistake has been committed [Reyes and which there had been which the minds of
Puno] a meeting of the the parties did not
minds of the parties meet, or the consent
Rationale: It would be unjust and inequitable but the instrument of one was vitiated.
to allow the enforcement of a written drawn up and signed
instrument which does not reflect or disclose
by them does not
the real meeting of the minds of the parties correctly express the
[Reyes and Puno] terms of their
agreement.
REQUISITES [Art. 1359]: Equity of reformation Intended to declare
is ordinarily limited the inefficiency which
a. There must be a meeting of the minds of
to written the contract already
the contracting parties
agreements, and its carries in itself and to
b. Their true intention is not expressed in
purpose is to render the contract
the instrument;
establish and inefficacious.
c. Such failure to express their true
perpetuate the true
intention is due to mistake, fraud,
agreement.
inequitable conduct, or accident; and
d. There is clear and convincing proof of
mistake, fraud, inequitable conduct, or
[Multi-Ventures Capital Management
accident
Corporation v Stalwart, 2007]
(1) The presumption is that an instrument
The appellant’s complaint states no cause of
sets out the true agreement of the
action, for it fails to allege that the
parties and that it was executed for
instrument to be reformed does not express
valuable consideration. Thus, when
the real agreement or intention of the parties.
there is some error or mistake in the
Such allegation is essential since the object
contract, the onus probandi is upon the
sought in an action for reformation is to make
party who insists that the contract
an instrument conform to the real agreement
should be reformed.
or intention of the parties. Moreover, courts
(2) While intentions involve a state of mind,
do not reform instruments merely for the
subsequent and contemporaneous acts
sake of reforming them, but only to enable
of the parties as well as the evidentiary
some party to assert right under them as
facts as proved and admitted can be
reformed. [Garcia vs. Bisaya, G.R. No. L-8060,
reflective of one’s intention.
(1955)].
(3) Expediency and convenience, which
was the purpose of the execution of
If mistake, fraud, inequitable conduct, or “purchase and sale agreement”, is not
accident has prevented a meeting of the a ground for reformation of instrument.
minds of the parties, the proper remedy is not
reformation of the instrument but annulment [Rosello-Bentir v Leanda, (2000)]
of the contract [Art. 1359, par.2]
(1) The right of reformation is necessarily
an invasion or limitation of the parol
evidence rule since, when a writing is
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2. Upon petition of the injured party, or his 3. When the real agreement is void—
heirs and assigns because there is nothing to reform
V. Interpretation of Contract
A. PRIMACY OF INTENTION
Separability Clause
a. If the terms of a contract are clear and Another fundamental rule in the
leave no doubt upon the intention of the interpretation of contracts is that the terms,
contracting parties, the literal meaning of its clauses and conditions contrary to law,
stipulations shall control. morals and public order should be separated
from the valid and legal contract and when
b. If the words appear to be contrary to the such separation can be made because they
evident intention of the parties, the latter are independent of the valid contract. A
shall prevail over the former. [Art 1370] lawful promise made for a lawful
c. However general the terms of a contract consideration is not invalid merely because
may be, they shall not be understood to an unlawful promise was made at the same
comprehend things that are distinct and time and for the same consideration. [Kasilag
cases that are different from those upon v Rodriguez, 1939]
which the parties intended to agree. [Art. Exception:
1372]
(1) Where the statute expressly or by
necessary implication declares the
CARDINAL TEST entire contract void
(2) Where the terms, clauses, and
conditions, by an established
Intention of the parties, to be derived from connection or by manifest intention of
the terms/language of the contract. the parties, is inseparable from the
principal obligation, and is a condition,
Where the language of a contract is plain and
juridically speaking, of that the nullity
unambiguous, its meaning should be
of which it would also occasion
determined without reference to extrinsic
[Manresa]
facts or aids. The intention of the parties
must be gathered from that language, and
from that language alone. Courts cannot Interpretation of Contracts of Adhesion
make for the parties better or more equitable
It bears stressing that a contract of adhesion
agreements than they themselves have been
is just as binding as ordinary contracts. It is
satisfied to make, or rewrite contracts
true that the SC has, on occasion, struck
because they operate harshly or inequitably
down such contracts as void when the weaker
as to one of the parties, or alter them for the
party is imposed upon in dealing with the
benefit of one party and to the detriment of
dominant bargaining party and is reduced to
the other, or by construction, relieve one of
the alternative of taking it or leaving it,
the parties from the terms which he completely deprived of the opportunity to
voluntarily consented to, or impose on him
bargain on equal footing. Nevertheless,
those which he did not [Bautista v CA, 2000].
contracts of adhesion are not invalid per se;
they are not entirely prohibited.The one who
While ordinarily the literal sense of the words
adheres to the contract is in reality free to
employed is to be followed, such is not the
reject it entirely; if he adheres, he gives his
case where they "appear to be contrary to the
consent.
evident intention of the contracting parties."
Intention shall prevail. [Borromeo v Reyes, While ambiguities in a contract of adhesion
1972] are to be construed against the party that
prepared the same, this rule applies only if
the stipulations in such contract are obscure
Nomenclature is not decisive of the character or ambiguous. If the terms thereof are clear
and leave no doubt upon the intention of the
A contract is what the law defines it to be,
contracting parties, the literal meaning of its
and not what it is called by the contracting
stipulations shall control. In the latter case,
parties. The Title of the contract does not
necessarily determine its nature [Tolentino]
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Lesion
The injury which one of the parties suffers by
virtue of a contract which is disadvantageous
for him. To give rise to rescission, the lesion
must be known or coud have been known at
the time of making of the contract. [Tolentino]
Accion Pauliana
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The action to rescind contracts in fraud of together with their fruits, and the price with
creditors. Consequently, accion pauliana its interests.
presupposes a judgment and unsatisfied
However, if the object of the contract is in the
execution which cannot exist when the debt is
possession of third persons in good faith,
not yet demandable at the time the rescissory
rescission cannot take place and indemnity
action is brought. [Tolentino]
for damages may be demanded from the
person causing the loss [Art. 1385]
Note: Even secured creditors are entitled to
accion pauliana.
[Lalicon v. National Housing Authority, 2011]
Rescission
Art. 1382. Payments made in a state of
Art. 1191 Art. 1381
insolvency for obligations to whose
fulfillment the debtor could not be
Rescission in Rescission by Reason
compelled at the time they were effected,
Reciprocal of Lesion
are also rescissible.
Obligations
(Resolution)
Requisites before payment made by Insolvent
can be rescinded: A resolutory The action is based
condition is implied on a party’s breach of
(1) It was made in a state of upon breach of one obligation and
insolvency; party. cannot be instituted
(2) Obligation must have been except when the
one which debtor could not party suffering
be compelled to pay at the damage has no other
time such payment was legal means to
obtain reparation.
effected.
[Art. 1383]
B. VOIDABLE CONTRACTS
Presumption of Fraud Contracts which are valid until annulled,
When alienation of property presumed in unless ratified. Defect is more or less intrinsic,
fraud of creditors: as in the case of vitiated consent. [Paras]
a. Alienation by gratuitous title if the Voidable or annullable contracts are existent,
debtor has not reserved sufficient valid and binding, although they can be
property to pay all of his debts annulled because of want of capacity or
contracted before alienation [Art. 1387(1), vitiated consent of one of the parties.
NCC] [Tolentino]
b. Alienation by onerous title if made by a
debtor against whom some judgment
has been rendered in any instance or Art. 1390. The following contracts are
some writ of attachment has been voidable or annullable, even though there
may have been no damage to the
issued [Art. 1387(2), NCC]
contracting parties:
The test as to whether or not a conveyance is (3) Those where one of the parties is
fraudulent is if it prejudices the rights of the
incapable of giving consent to a
creditors. [Tolentino]
contract;
(4) Those where the consent is vitiated by
Badges of Fraud mistake, violence, intimidation, undue
A conveyance leaving no property for other influence or fraud.
creditors to attach is an evidence of fraud.
These contracts are binding, unless they are
annulled by a proper action in court. They
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Constructive Notice
Effects of Failure to Make Restitution Discovery or fraud must be reckoned from the
time the document was registered in the
Loss of thing by Loss of thing by office of the register of deeds. Registration
Plaintiff Defendant constitutes constructive notice to the whole
world. [Carantes v. CA, 1977]
If the loss of the If it is lost through the
onject in his defendant’s fauly, he
possession is due to is liable for fruits B.3. RATIFICATION
his fault or fraud, he received, value of the The act or means by virtue of which efficacy is
cannot ask for thing at the time it given to a contract which suffers from a vice
annulment. was lost, with interest of curable nullity [Arts. 1392-1396].
from the same date. Ratification is either express or tacit.
Effect on the Contract No effect unless ratified. Cannot be enforced by a proper action in court
How to assail Not by direct action. Not by direct action. Not by direct action.
As a defense, by motion As a defense, by motion As a defense, by motion
to dismiss the complaint to dismiss on the ground to dismiss the complaint
on the ground that the that the contract is on the ground that the
contract is unenforceable; contract is
unenforceable unenforceable
Objection to the
presentation of oral
evidence to prove an oral
contract [see Art. 1405]
Who can assail - By person whose name By party against whom By party against whom
cannot be assailed by the contract was entered the contract is being the contract is being
third persons (Art. into / by owner of enforced; or his privies enforced; or his privies;
1408) property or parents or guardians,
as it is a personal
defense
GENERAL RULES OF APPLICATION OF (3) The Statute of Frauds does not apply if
STATUTE OF FRAUDS it is claimed that the contract does not
(1) The Statute of Frauds is a Rule of express the true agreement of the
Exclusion, i.e. oral evidence might be parties. As long as the true or real
relevant to the agreements enumerated agreement is not covered by the
therein and might therefore be Statute of Frauds, it is provable by oral
admissible were it not for the fact that evidence [Cayuga v Santos]
the law excludes said oral evidence.
(2) The defense of the Statute of Frauds The Statute of Frauds simply provides the
may be waived [Art. 1405] method by which the contracts enumerated
(3) Applies only to executory contracts, not therein may be proved but does not declare
partially or completely executed them invalid because they are not reduced to
writing. [Swedish Match v CA (2004)]:
(consummated) contracts.
(4) The Statute of Frauds is exclusive that
is, it applies only to the agreements or For a note or memorandum to satisfy the
contracts enumerated therein [Quintos Statute, it:
v Morata, 1930] (a) Must be complete in itself and cannot
(5) The Statute of Frauds is a personal rest partly in writing and partly in
defense, that is, a contract infringing it parol.
cannot be assailed by third persons [Art. (b) Must contain the names of the parties,
1408] the terms and conditions of the
(6) Contracts infringing the Statute of contract, and a description of the
Frauds are not void, they are merely property sufficient to render it
unenforceable [Art. 1403] capable of identification.
(c) Must contain the essential elements
EXCEPTIONS TO APPLICATION OF STATUTE of the contract expressed with
OF FRAUD certainty that may be ascertained
(1) The Statute of Frauds cannot apply if from the note or memorandum itself,
the action is neither for damages or some other writing to which it
because of the violation of an refers or within which it is connected,
agreement nor for the specific without resorting to parol evidence.
performance of said agreement
(2) The Statute of Frauds does not The purpose of the Statute is to prevent fraud
determine the credibility or weight of and perjury in the enforcement of obligations
evidence. It merely concerns itself with depending for their evidence on the
unassisted memory of witnesses, by requiring
the admissibility thereof.
certain enumerated contracts and
transactions to be evidenced by a writing
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Includes not only those contracts in which Note: Article 1421 is subject to exceptions. For
one of the essential requisites is totally instance, the creditors of a party to an illegal
wanting, but also those which are declared contract may, under the conditions set forth
void by positive provision of law or statute in Article 1177 of said Code, exercise the rights
and actions of the latter, EXCEPT only those
Art. 1409. The following contracts are which are inherent in his person, including
inexistent and void from the beginning: therefore, his right to the annulment of said
(1) Those whose cause, object or purpose contract, even though such creditors are not
is contrary to law, morals, good affected by the same, except indirectly, in the
manner indicated in said legal provision.
customs, public order or public policy;
[Pascual v. Secretary of Public Works,
(2) Those which are absolutely simulated December 29, 1960]
or fictitious; A contract which is the direct result of a
(3) Those whose cause or object did not previous illegal contract is also void and
inexistent. [Art. 1421]
exist at the time of the transaction;
(4) Those whose object is outside the
commerce of men; Void v. Inexistent Contracts
The law prohibits the spouses from selling (2) Payment of money or delivery of
property to each other, subject to certain property for an illegal purpose, where
exceptions. [Art. 1490] Similarly, donations the party who paid or delivered
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repudiates the contract before the (1) the contract is not illegal per se but
purpose has been accomplished, or merely prohibited;
before any damage has been caused to
(2) the prohibition is for the protection of
a third person [Art. 1414] [See: Hulst v.
the plaintiffs; and
PR Builders Inc., September 3, 2007]
(3) if public policy is enhanced thereby.
(3) Payment of money or delivery of
[Acabal v. Acabal, March 31, 2005] See
property made by an incapacitated
also: Arts. 1345 and 1346
person [Art. 1415]
Non-Existing Cause or Object [Paras]
(4) Agreement or contract not illegal per se
but merely prohibited by law, and the Art. 1409(3) speaks of contracts “whose
prohibition is designed for the object or cause did not exist at the time of the
transaction.” This is not exactly correct
plaintiff’s protection [Art. 1416] Note: because there can be valid contracts
When the assailed contracts are void involving future property; example, sale of
ab initio, Art. 1416 cannot be applied, future or after-acquired property. Thus,
as in the case of aliens purchasing Justice J. B. L. Reyes notes: “did not exist at
property despite knowing fully well the the time of the transaction” should be “could
constitutional prohibition against not come into existence because the object
may legally be a future thing.”
foreigners owning land in the
Philippines at the time of purchase.
[Frenzel v. Catito, July 11, 2003]
(5) Payment of any amount in excess of
the maximum price of any article or
commodity fixed by law [Art. 1417]
(6) Contract whereby a laborer undertakes
to work longer than the maximum
number of hours fixed by law [Art. 1418]
(7) Contract whereby a laborer accepts a
wage lower than the minimum wage
fixed by law [Art. 1419]
(8) In case of divisible contracts, the legal
terms may be enforced separately from
the illegal terms [Art. 1420]; and
(9) One who lost in gambling because of
fraudulent schemes practiced on him.
He is allowed to recover his losses [Art.
315(3)(b)] even if gambling is prohibited
VII. Natural
Natural Civil
Obligations Obligations Obligations
As to Not by court Court action
Those based on equity and natural law, which enforceability actions, but or the
do not grant a right of action to enforce their by good coercive
performance, but after voluntary fulfillment conscience power of
by the obligor, authorize the retention of of debtor public
what has been delivered or rendered by authority
reason thereof [Art. 1423]
As to basis Equity and Positive law
Note: The binding tie is the conscience of man natural [Art. 1157]
In order that there may be a natural justice
obligation there must exist a juridical tie
which is not prohibited by law and which in
itself could give a cause of action but because
of some special circumstances is actually Natural Obligations Moral Obligations
without legal sanction or means of enforcing
compliance by intervention of courts. There is a juridical No juridical tie
[Tolentino] tie between the whatsoever.
parties which is not
enforceable by court
Four Types of Obligations in Juridical Science action.
(1) Moral Obligations – duties of Voluntary Voluntary fulfillment
conscience completely outside the field fulfillment of such of such does not
of law produces legal produce any legal
effects which the effect which the court
(2) Natural Obligations – duties not court will recognize will recognize and
sanctioned by any action but have a and protect. protect.
relative judicial effect Within the domain Within the domain of
(3) Civil Obligations – juridical obligations of law morals
that are in conformity with positive law
but are contrary to juridical principles The promise made by an organizer of a dog
and susceptible of being annulled; racing course to a stockholder to return to
enforceable by action him certain amounts paid by the latter in
satisfaction of his subscription upon the
(4) Mixed Obligations – full juridical effect; belief of said organizer that he was morally
falls under civil obligations responsible because of the failure of the
enterprise, is not the consideration required
by Art. 1261 of the Civil Code as an essential
Two Conditions Necessary for Natural element for the legal existence of an onerous
Obligations: contract which would bind the promissor to
(1) That there be a juridical tie between comply with his promise. The promise was
two persons; and prompted by a feeling of pity and is, therefore,
purely moral and as such, not demandable in
(2) That this tie is not given effect by law law but only in conscience, over which human
judges have no consideration. [Fisher v. Robb,
November 2, 1939]
General Rule: Partial payment of a natural (2) The right to sue upon it has already
obligation does not make it civil; the part paid lapsed by extinctive prescription
cannot be recovered but the payment of the
balance cannot be enforced. (3) Obligor performs contract voluntarily
applicable only to natural obligations
because of prescription or lack of formalities Consequence: Obligor cannot recover what he
(nullity due to form e.g. Art. 1430) and not to has delivered or value of the service he
natural obligation subject to ratification or rendered.
confirmation
Requisites under Art 1424 (Prescribed Civil (3) Obligation is annulled after minor
has received the price or whole thing
Obligation – Obligor)
(1) There is a civil obligation (4) Minor returns whole thing or price
received voluntarily
1426 1427
Presupposes a prior No prior annulment is Requisites under Art 1430 (Payment of legacy
annulment involved
– Will declared Void)
Refers to any object Refers to money or fungible
things (1) There is a will providing for a legacy
Consumption in good faith is Requires consumption in
not required good faith (2) The will is declared void because it was
not executed in accordance with the
formalities required by law
Art. 1428. When, after an action to enforce a civil obligation
has failed the defendant voluntarily performs the obligation, (3) Heir pays legacy
he cannot demand the return of what he has delivered or the
payment of the value of the service he has rendered.
1. Trustor – the person who establishes Art. 1444. No particular words are required
for the creation of an express trust, it being
the trust
sufficient that trust is clearly intended
2. Trustee – one in whom the confidence
is reposed as regards property for the
benefit of another person Want of Trustee
3. Beneficiary or cestui que trust – person
Art. 1445. No trust shall fail because the
for whose benefit the trust has been trustee appointed declines the designation,
created unless the contrary should appear in the
instrument constituting the trust
C. KINDS OF TRUST To permit the trust to fail for want of trustee
is to defeat the intention of the trustor in
creating the trust.
C.1. EXPRESS TRUST
Created by the intention of the trustor or
of the parties [Art. 1441] Acceptance by beneficiary
CIVIL LAW
SALES
(b) Sale of animals suffering from contagious Sale of Things Having Potential Existence
diseases [Art 1575]
(c) Sale of animals if the use or service for Emptio Rei Emptio Rei Spei
which they are acquired has been stated Speratei Mere Hope Vain Hope
in the contract, and they are found to be
unfit therefor [Art 1575] the thing will existence immediately
(d) Sale of land in violation of Constitutional exist
prohibition against the transfer of lands Future thing is
to aliens. [Art XII of Constitution] certain as to
itself, but
When the subject matter is illicit, the contract of incertain as to
sale is void [Art. 1409 (7)] quantity and
(2)(B) Existing, Future, Contingent quality
In case of doubt, the presumption is in favor of
The goods which form the subject of a contract of emptio rei speratae since it is more in keeping
sale may either be— with the commutative character of the contract.
(a) Existing goods owned or possessed by the
seller; (4) Sale of specific things
(b) Goods to be manufactured, raised, OR
acquired by the seller – “Future Goods”; (a) Sale of things in litigation [Art 1381(4)]
[Art 1462, CC]
Sale of things under litigation entered into by
It is valid only as an executory contract to be defendant, without the approval of the litigants
fulfilled by acquisition and delivery of goods or the court, is rescissible. [Art 1381 (4)]
specified.
But no rescission where the thing is legally in the
(3) Things having potential existence may be the possession of 3rd persons who did not act in bad
object of a contract of sale. [Art 1461, CC] faith [Art 1385 (2)]
A sale may be made of a thing which, though not
yet actually in existence is reasonably certain to (b) Sale of an undivided interest in a thing
come into existence as the natural increment or [Art 1463]
usual incident of something in existence already LEGAL EFFECT: Make the buyer a co-owner in the
belonging to the seller, and the title will vest in thing sold:
the buyer the moment the thing comes into (i) acquire full ownership of his part
existence. [Sibal vs Valndez, 1927] (ii) may sell his part even without consent of
Sale of Things Having Potential Existence other co-owners
Exception: when the thing or part thereof has Art. 1165. When what is to be delivered is a
been delivered to and appropriated by the buyer, determinate thing, the creditor, in addition to
in which case the buyer has to pay a reasonable the right granted him by Article 1170, may
price therefor. compel the debtor to make the delivery.
If the thing is indeterminate or generic, he
B.2. NON-ESSENTIAL ELEMENTS OF A may ask that the obligation be complied with
CONTRACT OF SALE at the expense of the debtor.
(1) Natural – those deemed to exist in certain If the obligor delays, or has promised to
contracts in the absence of any contrary deliver the same thing to two or more persons
stipulations.(Ex. Warranty against eviction, who do not have the same interest, he shall
hidden defects) be responsible for any fortuitous event until
(2) Accidental – those which may be present or he has effected the delivery.
absent depending on the stipulations of the (1) Specific or Determinate Thing – capable of
parties.(Ex. Conditions, interest, penalty) particular designation, e.g. this car, the car
with plate no. XNY 200
C. FORM OF CONTRACT OF SALE
(2) Generic or Indeterminate Thing – refers only to
ART. 1483 a class, to a genus, and cannot be pointed out
General Rule: Form is not important with particularity, e.g. a car (genus nunquam
Exceptions: perit)
(1) Form important for Enforceability E.1 NATURE OF OBLIGATIONS CREATED PER
(a) Statute of Frauds DEFINITION IN ART.1458
ART. 1403
[Villanueva]
ART. 1405
(1) For the SELLER: To transfer ownership and to
(2) Form important for Validity deliver possession of the subject matter
(a) Sale of Realty through Agents (2) For the BUYER: To pay the price
ART. 1874
F. CHARACTERISTICS OF A CONTRACT OF
(b) Sale of Large Cattle SALE
ART. 1581
(1) Consensual – perfected by mere consent and
Section 529, Revised Administrative without any further acts.
Code
When a contract of sale is perfected, the seller is The fact that the object were made by the seller
merely obligated to transfer ownership and to only when customers placed their orders, does
deliver the property. Transfer of ownership is not alter the nature of the contract of sale, for it
effected only upon delivery. only accepted such orders as called for the
employment of such materials as it ordinarily
Sale is merely title that creates the obligation on manufactured or was in a position habitually to
the part of the seller to transfer ownership and manufacture such. [Celestino Co & Co vs. Collector,
deliver possession, but on its own, sale is not a 1956:]
mode that transfers ownership. [Equatorial Realty
Dev. v. Mayfair Theater, 2001] When each product or system executed is always
UNIQUE and could not mass-produce the
G. SALE DISTINGUISHED FROM OTHER product because of its very nature, such is a
CONTRACTS contract for a piece of work.[Commissioner vs.
Engineering Equipment and Supply Co., 1975]
G.1. DONATION
G.4. DACION EN PAGO
Sale Donation
Onerous Gratuitous Sale Dacion en pago
No pre-existing debt Pre-existing debt
Perfected by mere Must comply with the
Creates an obligation Extinguishes the
consent formalities required by
obligation (mode of
law. [Art 745]
payment)
When the price of the contract of sale is Price is more freely Price is value of the
simulated, the sale may be void but the act may agreed upon, fixed by thing given
be shown to have been in reality a donation or the parties
some other contract. [Art.1471] Buyer has to pay the Payment is received by
G.2. BARTER price the debtor before
contract is perfected
Sale Barter
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Conditional Contract of
Contract to sell
Sale
Sale is already No perfected sale yet
perfected
A subsequent buyer is A subsequent buyer is
presumed to be a buyer presumed to be a
in bad faith buyer in good faith
(5) Lawyers - Cannot acquire or purchase (1) If both parties are incapacitated:
property or rights in litigation in which they unenforceable [Art. 1403 (3)]
take part by virtue of their profession (2) If only 1 party is incapacitated: voidable
Lawyers may have undue influence over Exception: If necessaries are sold and delivered to
client; greed may get the better of the an incapacitated person: pay a reasonable price
sentiments of loyalty and disinterestedness. therefor. [Art 1489]
[Valencia v Cabanting, 1991]
Prohibition is definite and permanent and B.2. RELATIVE INCAPACITY
cannot be cured by ratification. [Rubias v
Sale between spouses is void.
Batiller, 1973]
Rationale:
Exceptions: An assignment to a lawyer by his
(1) To protect 3rd persons who may have
client of an interest in the property does not
contracted with the spouse
violate Art 1491, where:
(2) To avoid undue advantage of the dominant
(a) A judgment has been rendered and has
spouse over the weaker spouse.
become final; and
(3) To avoid circumvention of the prohibition
(b) In case of contingency fee arrangements:
against donations between spouses. [Medina
the interest of the lawyer may be
v CIR, 1961]
annotated as an adverse claim on the
property awarded to his client [Director of Such prohibition shall likewise apply to common
Lands v Ababa, 1979] law spouses. [Calimlim-Canulas v Fortun, 1984]
(6) Justices, Judges, prosecuting attorneys, clerks But if already sold to a third person who relied on
and other officers and employees connected the title of his immediate seller, reconveyance to
with the administration of justice - Cannot the seller spouse is no longer available [Cruz v CA,
acquire or purchase property or rights in 1997]
litigation or levied upon on execution before
the court within whose jurisdiction or territory
B.3. SPECIFIC INCAPACITY/ SPECIAL
they exercise their respective functions.
DISQUALIFICATIONS
Rationale: to prevent fraud and to surround
General Rule: Contracts expressly prohibited by
their profession with prestige. law are VOID and CANNOTBERATIFIED. Neither
Prohibition applies only on sales or can the right to set-up the defense of illegality be
assignment during the pendency of litigation waived. [Art. 1409 (7)]
involving the property. [Macariola v Asuncion,
Those entered into by public officers/employees,
1963]
justices and judges, and lawyers in violation of
(7) Others specially disqualified by law Art. 1491 are inexistent and VOID from the
(a) Unpaid sellers with goods in transit from beginning. [Rubias v Batiller, 1973] It is NOT
buying the goods subject to RATIFICATION.
(b) Officer conducting the execution sale of Exception: Sales entered into by guardians,
deputies administrators, and agents (specific incapacities)
Art 1492: The prohibitions in the two in violation of Art. 1491 may be RATIFIED by
preceding articles (Arts. 1490, 1491) are means of and in the form of a new contract when
applicable to sales in legal redemption, the cause of nullity has ceased to exist.
compromises and renunciations. Ratification is valid only from date of execution of
Art 1646: The persons disqualified to buy the new contract and does not retroact.
referred to in articles 1490 and 1491, are also
disqualified to become lessees of the things
mentioned therein.
B. EFFECTS OF INCAPACITY
B.1. ABSOLUTE INCAPACITY
General Rule: Ownership is not acquired by “Control” over thing sold must be such that
the buyer. One cannot give what one does not seller is capable of physically transferring it to
have. [Art 1505] buyer.
Exceptions: Although parties may stipulate that the
execution of a public instrument is equivalent
(a) Seller has a Right to transfer ownership
to delivery, this legal fiction holds true only
(b) Estoppel: Owner is, by his conduct,
when there is no impediment that may
precluded from denying the seller’s
prevent the passing of the property from the
authority to sell. [Art. 1434]
vendor to the vendee. [Vda. de Sarmiento v.
(c) Registered land bought in good faith
Lesaca, 1960]
(d) Order of courts; Statutory Sale
(e) When goods are purchased in Merchant’s If, notwithstanding execution of the
store, Fair, or Market [Art 1505] instrument, the buyer cannot enjoy material
tenancy and make use of the object himself or
(7) Sale by Person Having a Voidable Title
through another in his name, there is no
(a) True owner may recover the thing when
delivery. [Power Commercial v. CA, 1997]
the ff. requisites concur:
(i) Subject matter is movable Execution of a public instrument gives rise
(ii) Owner has either lost the thing or has only to a prima facie presumption of delivery,
been unlawfully deprived. [Art 559] negated by failure of the buyer to take actual
(b) Reimbursement is necessary before possession of land sold. A person who does
owner can recover when: not have actual possession cannot transfer
(i) Buyer acted in good faith constructive possession by execution and
(ii) Acquired at a public auction [Art 559] delivery of public instrument.[Spouses
(c) Recovery no longer possible when: Santiago v. Villamor, 2012]
(i) Buyer in good faith
(2) Symbolic Delivery
(ii) Acquired it at a merchant’s store, fair
or market. [Art 1506] Delivery of keys of the place or depositary
where the movable is stored or kept. [Art
G. KINDS OF DELIVERY 1498]
G.1.ACTUAL DELIVERY Unless otherwise agreed, when symbolic
(1) Deemed made when the thing sold is placed delivery has been made, the seller is not
in the control and possession of the vendee obliged to remove tenants to place the buyer
[Art. 1497] in actual possession of the property as he has
(2) Not always essential to passing of title [Art. already complied with his obligation to
1475] transfer ownership of and deliver the thing
(3) Parties may agree when and on what sold. [Power Commercial and Industrial Corp. v.
conditions the ownership shall pass to the CA, 1997; Sabio v. The International Corporate
buyer [E.g.: Art 1478 where ownership will Bank, Inc., 2001]
only pass after full payment of the price] (3) Tradition Longa Manu (Long Hand)
G.2. CONSTRUCTIVE DELIVERY Delivery of movable property by mere consent
(1) Execution of public instrument[Art 1498, first or agreement, if the thing sold cannot be
paragraph] transferred to the possession of the buyer at
the time of sale. [Art 1499]
General Rule: produces the same legal effects
of actual delivery. Example: Seller points to the property
without actually transferring physical
Exceptions: possession thereof.
(a) The parties intended otherwise.
(b) At the time of execution, the subject When an employer assigned all its rights and
matter was not subject to the control of the title to all surplus property salvaged by the
seller, which control must subsist for a contractor, tradition longa manu takes place.
reasonable length of time after execution. Delivery is upon the moment a thing is
[Pasagui v Villablanca, 1975] salvaged. [Board of Liquidators v. Floro, 1960]
second sale occurred by virtue of an execution (2) Annotation of Lis Pendens: Buyer cannot
sale. This is because a buyer of unregistered be considered an innocent purchaser for
land at an execution sale only steps into the value where it ignored the lis pendens on
shoes of the judgment debtor (the person the title.
who sold the property prior to the execution (3) A purchaser of a parcel of land cannot
sale). The second buyer merely acquires the close his eyes to facts which should put a
latter's interest in the property sold as of the reasonable man upon his guard, such as
time the property was levied upon. [Carumba when the property subject of the
v. CA, 1970] purchase is in the possession of persons
other than the seller. A buyer who could
(4) Sale of Immovables: Unregistered Land
not have failed to know or discover that
(a) Instrument or deeds establishing, the land sold to him was in the adverse
transmitting, acknowledging, modifying possession of another is a buyer in bad
or extinguishing rights with respect to faith. [Heirs of Ramon Durano v Uy, 2010]
lands not registered under the Land
Registration Act or the Spanish Mortgage
Law, are required to be registered in the Annotation of Adverse
Registry of Property to prejudice 3rd Lis Pendens
Claim
persons, although such registration is
understood to be “without prejudice to a May be cancelled even May be cancelled
third party with a better right”. [PD 1528 before the action is only in one instance,
Sec 113] finally terminated for i.e., after the claim is
(b) Art. 1544 applies to unregistered land causes which may not adjudged invalid or
subject to a conventional sale (because of be attributable to the unmeritorious by the
Art. 1358) but NOT to unregistered land claimant Court
subject to judicial sale.
(c) Unregistered by both buyers, the first The two are not contradictory or repugnant to
buyer is preferred. one another; nor does the existence of one
(d) If first buyer did not register but second automatically nullify the other, and if any of the
buyer registered property, second buyer is registrations should be considered unnecessary
preferred. or superfluous, it would be the notice of lis
pendens [A. Doronila Resources Development Inc
I. PROPERTY REGISTRATION DECREE v CA, 1988]
I.1 REQUISITES FOR REGISTRATION OF DEED (ii) Accompanied by vendors duplicate certificate
OF SALE IN GOOD FAITH of title, payment of capital gains tax, and
(i) Purchaser in Good Faith documentary tax registration fees
One who buys the property of another, without Must be accompanied by:
notice that some other person has a right to or (a) Vendor’s duplicate certificate of title
interest in such property, and who pays a full (b) Payment of capital gains tax – 6% of the
and fair price for the sale, at the time of the selling price or zonal value, whichever is
purchase or before he has notice of the higher
claim/interest of some other person in the (c) Documentary tax registration fees – 1.5%
property. [Agricultural and Home Extension of the selling price or zonal value,
Development Group v CA, 1992] whichever is higher
General Rule: As a rule, he who asserts the J. RISK OF LOSS (SEE EFFECTS OF
status of a purchaser in good faith and for CONTRACTS WHERE THE THING IS LOST)
value has the burden of proving such assertion.
[Mathay v CA, 1998] K. WARRANTIES
When buyer is presumed to be in bad faith A statement or representation made by the seller
(1) Annotation of adverse claim: Places any contemporaneously and as part of the contract of
subsequent buyer of the registered land sale, having reference to the character, quality, or
in bad faith. [Balatbat v CA, 1996] title of the goods, and by which he promises or
undertakes to ensure that certain facts are or represented as true in value of the thing or
shall be as he then represents. said document cannot statement of only the
be considered as mere seller’s opinion is not a
Not every false representation voids the contract,
dealer's talk. [Moles v. warranty unless:
only those matters substantially affecting the
IAC, 1989] 1) The seller made it as
buyer’s interest, not matters of opinion, judgment,
an expert;
probability, or expectation. When the buyer
2) It was relied upon
undertakes his own investigation, and the seller
by the buyer.
does nothing to prevent it from being as full as
[Art.1546]
the buyer chooses, the buyer cannot afterwards
3) Ordinarily, what
allege misrepresentations. [Songco v. Sellner,
does not appear on
1917]
the face of the written
instrument [Moles v.
IAC, 1989]
Condition vs. Warranty
Express Warranty vs. False Representation
Condition Warranty
Pertains to and affects Goes into the Express Warranty False Representation
the existence of the performance of an Concealment of facts When concealment of
obligation obligation and may, in does not necessarily facts comes with an
itself, be an obligation amount to false active misstatement of
Non-happening does Non-fulfillment representation fact or a partial
not amount to breach of constitutes breach of statement of fact such
contract contract that withholding of
Must be stipulated Stipulation or that unsaid portion
operation of law makes that which is
May attach either to the Always relates to the stated absolutely false
seller’s duty to deliver subject matter or the
thing or some other seller’s obligations as However, buyer who
circumstance to the subject matter fails to inspect
condition of property
If seller has promised that the condition should despite ample
happen or be performed, the buyer may treat the opportunity to do so
nonperformance of the condition as a breach of when there is no
warranty. [Art.1545] opposition on the part
K.1 EXPRESS WARRANTIES of seller to inspect
cannot later on allege
For there to be express warranty, the following
false representation.
requisites must concur: (APIR)
[Phil Mftg Co. v Go
(1) An affirmation of fact or any promise Jucco, 1926]
relating to the thing sold;
(2) The natural tendency of such affirmation
Reason: buyer’s duty
or promise is to induce the buyer to buy;
to inspect remains
(3) The buyer buys the thing relying thereon.
despite false
[Art. 1546]
representation by the
(4) Made before the sale not upon delivery or
seller; he has the duty
any other point
to exercise due
An express warranty can be made by and also be diligence.
binding on the seller even in the sale of a second
hand article. [Moles v. IAC, 1989]
K.2 IMPLIED WARRANTIES
Express Warranty vs. Dealer’s/Trader’s Talk
[ART. 1547]
Dealer’s or Trader’s
Express Warranty An implied warranty is derived by law by
Talk
implication or inference from the nature of the
What is specifically Affirmation of the
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transaction or relative situation, or circumstances (2) The defect is not patent or visible;
of the parties, irrespective of any intention of the (3) The buyer is not an expert who, by reason of
seller to create it.[De Leon] his trade or profession, should have known
the defect
(i) Implied Warranty of Title
(4) The seller is aware of the hidden fault or
(1) Implied warranty arises by operation of law
defect, OR even if he is not aware thereof, if
and need not be stipulated in the contract
there is no stipulation to the contrary
of sale.
[Art.1566]
(2) Warranty of Seller’s Right to Sell: Seller
warrants his right to sell at the time the The buyer must also give notice of such
ownership is to pass. redhibitory defect within a reasonable time.
Inapplicable to a sheriff, auctioneer, The use contemplated must be that which is
mortgagee, pledgee, or other person stipulated, and in absence of stipulation, that
professing to sell by virtue of authority in which is adopted to the nature of the thing, and
fact or law. [Art. 1547] to the business of the buyer.
(3) Warranty against Eviction: seller warrants
(iv) Implied Warranty as to Merchantable Quality
that buyer, from the time ownership passes,
and Fitness of Goods
shall have and enjoy legal and peaceful
possession of the thing. Its requisites are:
Merchantable Quality
(a) Buyer is deprived of the whole or a part
(1) Where the goods are brought by description
of the thing sold;
from a seller who deals in goods of that
(b) Eviction is by final judgment
description [Art.1562]
(c) Final judgment based on a right prior to
(2) In a sale by sample, if the seller is a dealer in
the sale or an act imputable to the
goods of that kind and the defect is not
vendor
apparent on reasonable examination of the
(d) Seller is summoned and made co-
sample [Art.1566]
defendant in the suit for eviction at the
instance of the buyer. [Power Warranty of merchantability is warranty that
Commercial and Industrial Corp. v. CA, goods are reasonably fit for the general purpose
1997] for which the same are sold.
(ii) Implied Warranty Against Encumbrance/Non- Warranty of fitness is warranty that goods are
apparent Servitudes suitable for the special purpose of the buyer
Requisites for breach: which will not be satisfied by mere fitness for
(1) Thing sold is an immovable general purposes.
(2) Burden or servitude encumbering the thing
In a sale by sample, there is implied warranty that
sold is:
goods are free from defects not apparent on
(a) Non-apparent to the naked eye
reasonable examination of sample and which
(b) Not mentioned in the agreement render goods unmerchantable. [Mendoza v. David,
(c) Of such nature that it must be presumed
2004]
that the buyer would not have bought it
had he been aware of it “Fitness for a particular purpose”:Where the
(d) Not recorded in the Registry of Property buyer expressly or impliedly makes known to the
unless there is an express warranty that seller the particular purpose for which the goods
the thing is free from all burdens and are acquired AND it appears that the buyer relied
encumbrances [Art.1560] on the seller’s skill or judgment [Art.1562(1)]
(iii) Implied Warranty Against Hidden Defects (v) Implied Warranty Against Redhibitory Defect in
the Sale of Animals
Requisites for breach:
[Art. 1572]
(1) The defect renders the thing sold unfit for the
use for which it was intended OR diminishes Redhibitory defect – a hidden defect of animals of
its fitness for such use to such an extent that such nature that expert knowledge is not
had the buyer been aware thereof, he would sufficient to discover it, even in a case where a
not have bought it or would have paid a lower professional inspection has been made
price; No warranty in case of [Art. 1574]
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(1) Animals sold at fairs or public auctions eyes to facts which should put a reasonable man
(2) Livestock sold as condemned upon his guard and then claim that he acted in
good faith under the belief that there was no
The following sales are void [Art. 1575]
defect in the title of the vendor.
(1) Sale of animals suffering from contagious
diseases
(2) Sale of animals unfit for the purpose for K.5. BUYER’S OPTIONS IN CASE OF BREACH
which they are acquired as stated in the OF WARRANTY
contract
[Art. 1599]
Veterinarian is liable if he fails to discover or
(1) Express Warranty
disclose the hidden defect through ignorance or
bad faith. [Art 1576] Prescriptive period: Period specified in express
warranty OR 4 years, if no period is specified
Seller liable if animal dies within 3 days after its
(following the general rule on rescission of
purchase due to a disease that existed at the time
contracts)
of sale. [Art 1578]
Remedies
(a) Accept goods + demand diminution/
K.3. EFFECTS OF WARRANTIES extinction of price
(b) Accept goods + damages
(1) Natural tendency is to induce buyer to
(c) Refuse to accept goods + damages
purchase the subject matter
(d) Rescind (Refuse to accept or return or
(2) Buyer purchases subject matter relying
offer to return) + recover price paid
thereon
(3) Seller liable for damages in case of breach
Rescission not available when buyer:
K.4. EFFECTS OF WAIVERS (a) Knew of breach of warranty when he
accepted the goods without protest
Only applicable to waiver of warranty against
(b) Fails to notify the seller about election to
eviction; parties may increase or decrease
rescind within a reasonable period of time
warranty against eviction but the effect depends
(c) Fails to return or offer to return the goods
on good/bad faith of the seller:
to the seller in substantially a good
(1) Seller in bad faith and there is warranty
condition as they were when delivered,
against eviction – null and void
unless deterioration was due to breach of
(2) Buyer without knowledge of a particular risk
warranty
and made general renunciation of warranty –
not waiver but merely limits liability of seller
in case of eviction (pay value of subject
Measure of damages: Difference between value of
matter at the time of eviction)
goods at the time of delivery and the value they
(3) Buyer with knowledge of risk of eviction
would have had if they had answered to the
assumed its consequences and made a
warranty
waiver – vendor not liable
(4) Waiver to a specific case of eviction – wipes
out warranty as to that specific risk but not as Effects of rescission
to eviction caused by other reasons (a) Buyer no longer liable for price: Entitled
to the return of any part of price paid,
One who purchases real estate with knowledge of
concurrently with or immediately after an
defect or lack of title cannot claim he acquired
offer to return the goods
title thereto in good faith, as against true owner
(b) If seller refuses to accept offer to return
of land or of interest therein. [J.M. Tuason v. CA,
goods: buyer deemed as bailee for seller
1979]
and has right of lien to secure payment of
The same rule must be applied to one who has part of price paid
knowledge of facts which should have put him
(2) Implied Warranty against Eviction[Arts. 1555,
upon such inquiry and investigation as might be
1556]
necessary to acquaint him with the defects in the
title of his vendor. A purchaser cannot close his
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Total Eviction Partial Eviction (b) Damages: Within 1 year from execution of
deed of sale or discovery of the burden or
Enforce liability for Enforce liability
servitude
eviction (demand VICED)
(4) Implied Warranty against Hidden Defects [Arts.
OR
1567-1571]
Demand from seller: Rescind within 6
If thing is not lost:
(VICED) months from delivery
(a) Withdraw from contract (accion
(a) Value of thing sold (a) If he would not have
redhibitoria) + damages
at time of eviction bought the thing sold
(b) Demand a proportionate reduction of the
(b)Income or fruits, if without the part lost;
price (accion quanti minoris) + damages
he has been ordered to (b) BUT he must return
deliver them to the the thing without other If thing is lost:
party who won the encumbrances than
Due to fortuitous event
eviction suit those which it had Due to hidden fault
or fault of buyer
(c) Costs of eviction suit when he acquired it
If seller aware of Demand:
and in a proper case,
defect, buyer may (a) Price paid minus
suit against seller for
demand: value of thing when it
warranty
(a) Return of price was lost
(d) Expenses of the
(b) Refund of expenses (b) Damages, if seller
contract, if buyer has
(c) Damages acted in bad faith
paid them
(e) Damages and If seller not aware of
interests, and defect:
Buyer may demand
ornamental expenses,
IF sale was made in price and expenses
bad faith BUT NOT damages
General rule: The buyer is not deemed to have (5) If the vendee has already fully paid the
accepted the goods delivered which he has not price [De Leon]
previously examined unless and until he has had
B.3 PAYMENT IN INSTALLMENTS
a reasonable opportunity to examine them for the
purpose of ascertaining whether they are in General rule: The vendee has no right to pay in
conformity with the contract installments
Exception: If there is no stipulation to the contrary Exception: Unless otherwise agreed
(ART. 1584, par.1)
General rule: The seller is bound, when he C. OBLIGATION TO BEAR THE EXPENSES
tenders delivery to the buyer, on request, to afford FOR THE EXECUTION AND REGISTRATION
the buyer a reasonable opportunity to examine OF THE SALE AND PUTTING THE GOODS
the goods for the purpose of ascertaining IN A DELIVERABLE STATE, IF SO
whether they are in conformity with the contract. STIPULATED
Exception: Unless otherwise agreed upon (ART.
1584, par. 2)
A.3 DELIVERY OF GOODS IN INSTALLMENT
General rule: The vendee is not bound to accept
delivery of goods in installment
Exception: Unless otherwise agreed (ART. 1583)
(e) The seller must surrender the (b) Carrier not obliged to redeliver
negotiable instrument or title, if any, until the negotiable document of
issued by the carrier/bailee title, if any, has been surrendered
(f) The seller must bear the expenses of for cancellation
the delivery of the goods after exercise
Effect When Buyer Has Sold the Goods[Art
of such right.
1535]
When Goods Are In Transit [Art 1531, first General Rule: Seller’s right to stoppage in
paragraph] transitu is not affected even if buyer has
(a) From the time of delivery to the carrier sold or disposed of the goods unless the
or other bailee by the seller, for the seller has given his assent thereto.
purpose of transmission to the buyer,
Exceptions:
until the buyer or his agent takes such
(a) When seller has given consent thereto
delivery from the carrier.
(b) When a negotiable document of title
(b) Even when goods have reached their
has been issued for the goods to a
ultimate destination, if buyer rejects
purchaser for value in good faith
them and carrier retains possession
(3) Special Right of Resale
To terminate transit by delivery to a
middleman, delivery must be to keep, not Available to unpaid seller who has a right
to transport. of lien or who has stopped the goods in
transitu [Art. 1533]
In case of misdelivery, the goods are still
considered in transit, hence, the seller may When available
still exercise his right pursuant to Article When the unpaid seller has either a right
1523. of lien or has stopped the goods in transitu
and under any of the following conditions:
When Goods Are No Longer In Transit[Art
(a) The goods are perishable in nature
1531, par. 2]
(b) The right to resell is expressly reserved
(a) Buyer obtained delivery of the goods
in case the buyer should default
before they have reached their
(c) The buyer delays in paying the price
appointed destination
for an unreasonable time
(b) Goods have arrived at the appointed
The right to resell the goods is not
destination, and the carrier/bailee
mandatory, but permissive.
acknowledges to hold the goods on
behalf of the buyer How exercised
(c) Goods have arrived at the appointed (a) He must do so within a reasonable
destination, but carrier wrongfully time and in such manner as to obtain
refuses to deliver to buyer/his agent the best price possible.
(b) The place of sale shall be at the place
Note: If the goods are delivered to a ship,
of delivery, except if the seller cannot
freight train, truck, or airplane chartered
sell the thing at a fair price at the
by the buyer, it is a question depending on
place of delivery.
the circumstances of the particular case,
(c) Resale is deemed to be a fair sale if it
whether they are in the possession of the
is undertaken in accordance with
carrier as such or as agent of the buyer.
established business practices, with no
How Right Is Exercised[Art 1532] attempt to take advantage of the
(1) By obtaining actual possession of the original buyer.
goods (d) Resale may be in a private or public
(2) By giving notice of his claim to the sale, but seller cannot buy directly or
carrier/other bailee who has indirectly.
possession of the goods (e) For resale to be valid, buyer need not
(a) Carrier must redeliver goods to be notified of an intention to resell or
seller, or according to his the time and place of the resale.
instructions
Exception: if the ground for resale is failure
to pay for an unreasonable amount of time
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The seller must exercise reasonable (a) When lessor has deprived the lessee of
judgment in making the sale. the possession or enjoyment of the thing
(i.e. lessor files a complaint for replevin
Effects of Resale
against lessee)
(a) Seller is no longer liable to the original
(b) Also applies when seller assigns his credit
buyer upon the contract of sale or for
to someone else
any profit made by the resale
(b) Buyer at resale acquires good title as C.2. ALTERNATIVE AND EXCLUSIVE REMEDIES
against the original owner
The exercise of one remedy bars the exercise of
(c) In case resale is at a loss, seller is
the others.
entitled to recover the difference from
the original buyer (1) Specific Performance
(d) Seller may recover damages from
General Rule: When the seller has chosen specific
original buyer for breach of contract
performance, he can no longer seek for rescission
(4) Special Right to Rescind or foreclosure of the chattel mortgage
Return of the title over the undelivered Exception: If specific performance has become
goods to the seller, and right to recover impossible, the seller may still choose rescission
damages for breach of contract [Art. 1534] [Art 1191]
When available (2) Cancellation of sale if vendee fails to pay 2 or
When the unpaid seller has either a right more installments
of lien or has stopped the goods in transitu (a) When the seller cancels the sale by
and under any of the following conditions: repossessing the property sold, he is
(a) Seller expressly reserved his right to barred from exacting payment for its
rescind in case buyer defaults price.
(b) Buyer has been in default in payment (b) It can only be carried out when he who
for an unreasonable time demands rescission can return whatever
he may be obliged to restore [Art 1385]
Transfer of title shall not be held to have
been rescinded by the unpaid seller until (3) Foreclosure of Chattel Mortgage if vendee
he manifests by notice to the buyer or fails to pay 2 or more installments
some other overt act an intention to (a) If seller chooses this remedy, he shall
rescind. have no further action to recover any
unpaid balance, and any stipulation to
Communication to buyer of rescission is
the contrary shall be void.
not always necessary (it can be an overt
(b) The purpose of the law is to remedy the
act). But giving/failure to give notice is
abuses committed in foreclosure of
relevant in determining reasonableness of
chattel mortgages. It prevents
time given to the buyer to make good his
mortgagees from seizing the mortgaged
obligation under contract. [De Leon]
property, buying it at foreclosure sale for
C. RECTO LAW: SALE OF MOVABLES ON a low price and then bringing the suit
INSTALLMENT – ARTS. 1484-1486 against the mortgagor for a deficiency
judgment. The almost invariable result of
C.1. WHEN APPLICABLE this procedure was that the mortgagor
(1) Sale of movables in installment found himself minus the property and still
owing practically the full amount of his
The rule is intended to apply to sales of movables, original indebtedness. [Bachrach Motor
the price of which is payable in 2 or more Co., Inc. v. Millan, 1935]
installments, but not to straight-term sales where
the price is payable in full, after making a down
payment because the law aims to protect D. SALE OF IMMOVABLES
improvident buyers who may be tempted to buy
beyond their means. [Levy Hermanos vs. Gervacio, D.1. RESCISSION FOR ANTICIPATORY BREACH
1939] [Art. 1591]
(2) Lease of personal property with option to buy
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This is applicable to both cash sales and to sales (3) If the buyer fails to pay the installments for
in installments. reasons other than the failure of the owner or
developer to develop the project, his rights
Requisites
shall be governed by RA 6552.
(1) There is delivery of immovable property
(2) Vendee has not yet paid the price; and
(3) Vendor has reasonable ground to fear the F. MACEDA LAW (RA 6552): SALE OF
loss of property and the loss of price IMMOVABLES ON INSTALLMENT
If there is no such reasonable ground, Art 1191 RA 6552 does NOT apply to:
applies (specific performance or rescission with (1) Industrial lots
damages). (2) Commercial buildings
Court has no discretion to compel the seller to (3) Sale to tenants under Agricultural Reform
wait for the expiration of the period to pay, or to Code [RA 3844]
grant the buyer more time to pay. (4) Sale of lands payable in straight terms [RA
6552, Sec 3]
D.2. SPECIFIC PERFORMANCE + DAMAGES OR
RESCISSION + DAMAGES Rights of the Buyer:
[Art. 1191] The law imposes additional requirements on the
part of the seller for a valid rescission
(1) Seller may choose between specific (1) If buyer has paid at least 2 years of
performance and rescission, with damages in installments then defaults:
either case. (a) Buyer has right to a grace period of 1
(2) Court has discretion, for a just cause, to give month per year of installment payment
the buyer more time to pay even if the seller made BUT the buyer may only avail of the
chooses rescission. grace period once every 5 years
(3) If seller chose specific performance, and such (b) Buyer has right to the refund of Cash
becomes impossible, he may still avail of Surrender Value (CSV): 50% of total
rescission amount paid + 5% for every year after the
(4) If absolute sale, seller must make a demand first 5 years of installments BUT total CSV
for rescission should not be greater than 90% of total
(a) Judicially, OR amount paid
(b) By a notarial act (c) After the lapse of the grace period, buyer
(5) Demand necessary even if automatic is given a notice of cancellation or
rescission is stipulated demand for rescission by notarial act,
(a) Effect of lack of demand: Buyer can still effective 30 days from the buyer’s receipt
pay thereof AND only upon full payment of
(b) Effect of demand: Court may not grant CSV
buyer a new term (2) If buyer has paid less than 2 years of
E. PD 957, SECTIONS 23 AND 24 installments:
(a) Grace period of at least 60 days
Non-forfeiture of payments (b) After the lapse of the grace period, buyer
(1) No installment payment made by the buyer is given a notice of cancellation or
shall be forfeited in favor of the owner or demand for rescission by notarial act,
developer of the condominium or subdivision effective 30 days upon receipt thereof
project, after due notice, when the buyer (3) During the grace period, the buyer shall also
desists from paying due to the failure of the have the right:
developer or owner to develop the project (a) To sell or assign his rights, evidenced in a
according to the approved plans or within the notarial instrument
time limit stated. (b) To update his account
(2) Buyer’s Remedy: At his option, he may (c) To pay in advance any installment, or the
reimburse the total amount paid including full unpaid balance of the price, without
amortization interest with interest thereon at any interest, and to have such full
the legal rate payment of the purchase price annotated
in the certificate of title covering the (2) Remedy for breach of obligation to deliver
property.
(a) Deliveryof wrong quantity [Art. 1522]
Down payments, deposits, or options on the
Goods are LESS THAN Goods are MORE THAN
contract shall be included in the total number of
what was contracted what was contracted
installments made.
Reject the goods Reject the excess
The seller may go to court for judicial rescission in OR OR
lieu of a notarial act of rescission. Accept and pay Reject the whole, if
Cancellation pertains to extrajudicial cancellation. (a) At contract rate if indivisible
Absence of notice does not bar the filing of an buyer accepts knowing OR
action to cancel the contract. that seller won’t Accept the whole and
perform in full pay at contract rate
A decision in an ejectment case can operate as (b) At fair value if
notice of cancellation as required by RA6552. goods were used
However, mere filing of an unlawful detainer suit before knowing that
by the seller does not operate as such notice. [De seller won’t be able to
Leon] perform in full
Everything is within
boundaries, even if Not everything is within VII. Extinguishment of
less or more than the boundaries
stated area
Sale
No remedy Proportional reduction in A. CAUSES
price
Where both the area OR [ARTS. 1600, 1231]
and the boundaries of Rescission Generally, extinguished by the same causes as all
the immovable are other obligations [Arts.1600, 1231]
declared, the area
covered within the (P-PLAN-C3-R3)
boundaries of the (1) Payment/performance
immovable prevails (2) Prescription
over the stated area. (3) Loss of thing due
[Rudolf Lietz, Inc. v. (4) Annulment
CA, 2005] (5) Novation
(6) Condonation/remission
Prescriptive period: 6 months counted from date (7) Confusion/merger
of delivery (8) Compensation
(9) Rescission
(10) Resolutory condition fulfilled
(11) Redemption (Conventional or Legal)
B. CONVENTIONAL REDEMPTION
[ART. 1601]
B.1. DEFINITION
(1) Vendor reserves the right to repurchase the
thing sold, with the obligation to comply with
the provisions of Article 1616 and other
stipulations which may have been agreed
upon. [Art 1601,CC]
(2) Available when the seller reserves the right to
repurchase the thing sold in the same
instrument of sale as one of the stipulations
of the contract [Villarica v CA, 1968]
B.2. PERIOD
General Rule: Follow period stipulated in contract,
but should not exceed 10 years.
Exceptions:
(1) If no period stipulated but the parties
intended a period, then it shall be 10 years
from the date of the contract.
(2) If no period stipulated, then it shall be four
years from the execution of the contract
(3) But vendor may still exercise the right to
repurchase within thirty days from the time
final judgment was rendered in a civil action
on the basis that the contract was a true sale
with right to repurchase
B.3. BY WHOM EXERCISED (2) The seller shall receive the thing free from all
charges or mortgages constituted by the
(1) Vendor
buyer BUT he shall respect leases executed
(2) His heirs, assigns or agents
by the buyer in good faith and in accordance
(3) Creditor, if he has exhausted the property of
with local custom.
the vendor
(3) As to fruits:
(4) Co-owners of an immovable, if they sold their
(a) If parties agreed on a distribution, the
interests to the same person, may only
fruits shall be distributed according to the
redeem their respective shares
agreement.
(a) Vendee cannot be compelled to agree to
(b) If parties did not agree on a distribution,
a partial redemption
(i) If there are growing fruits at the time
(b) If the co-owners sold their interest to the
of sale and at the time of redemption:
same person who previously bought the
(1) Buyer receives reimbursement if
share of a co-owner subject to a right of
the buyer paid indemnity at the
redemption, then the latter may be
time of the sale
compelled to redeem the whole property
(2) Buyer receives no reimbursement
or prorating if the buyer did not
B.4. FROM WHOM TO REDEEM pay indemnity at the time of sale
(ii) If there were no growing fruits at the
(1) Vendee a retro
time of sale, but some exist at the
(2) His heirs, assigns or agents
time of redemption: fruits prorated
(3) Subsequent purchaser of property, even if the
(buyer entitled to part corresponding
right to redeem was not mentioned in the
to time he possessed the land in the
subsequent contract; except if registered land,
last year, counted from the
where the right to redeem must be annotated
anniversary of the date of sale)
on the title
(4) If several heirs, then the right of redemption
can be exercised against each heir for his B.7. EFFECT OF NON-REDEMPTION
share of the property
Ownership is consolidated in the buyer BUT the
consolidation shall not be recorded in the
B.5. HOW EXERCISED Registry of property without a judicial order, after
the vendor has been duly heard.
(1) By returning the ff. to the buyer: (PEN)
(a) Price of the sale
B.8. RIGHT TO REDEEM VS OPTION TO
Except if the parties agreed on a
PURCHASE
redemption price
(b) Expenses of the contract and other Right to Redeem Option to Purchase
legitimate payments made by reason of
the sale; Not a separate contract Generally a principal
(c) Necessary and useful expenses made on but part of a main contract and may be
the thing sold contract of sale, and created independent of
(2) Complying with any other stipulation agreed cannot exist unless another contract
upon, if any. reserved at the time of
the perfection of the
The general rule in redemption is that it is not main contract of sale
sufficient that a person offering to redeem Does not need its Must have a
manifests his desire to do so. The statement of separate consideration consideration separate
intention must be accompanied by an actual and to be valid and effective
and distinct from the
simultaneous tender of payment for the full purchase price to be
amount of the repurchase price. [BPI Family valid and effective
Savings Bank, Inc. v. Veloso, 2004] [Arts. 1324 and 1479]
The maximum period The period of the
B.6. EFFECT OF REDEMPTION for the exercise of the option contract may be
right to repurchase beyond the 10-year
(1) The sale is extinguished cannot exceed 10 years period
Page 310 of 599
UP LAW BOC SALES CIVL LAW
(3) General Rule: Period starts to run from the (2) A sincere or genuine tender of payment is
date of the execution of the contract enough. The deposit of the amount of the
(4) Exception: When the efficacy of the sale is repurchase money with the Clerk of Court was
subject to a suspensive condition, period simply and additional security [Legazpi v.
should be counted not from the date Court of Appeals, 1986]
appearing on the instrument, but from the (3) When tender of payment cannot be validly
date when the condition is fulfilled, marking made because the buyer cannot be located, it
the consummation of the sale [Tolentino becomes imperative for the seller a retro to
citing Manresa]. file a suit for consignation with the courts of
the redemption price [Catangcatang v.
Legayada, 1978].
Additional 30 days for Repurchase (4) If the offer or tender of payment for
repurchase is refused, it is not necessary for
The last paragraph of Art. 1606 giving the vendor
the vendor a retro to consign in court or make
the right to repurchase within 30 days from the
judicial deposit of the repurchase price
time of the rendition of final judgment applies
[Rosales v. Reyes, 25 Phil 495].
only where the nature and the character of the
transaction, whether as a pacto de retro or an The seller a retro is given no option to require the
equitable mortgage, was put in issue before the buyer a retro to remove the useful improvements
court [Gonzales v. De Leon, 4 SCRA 332] on the land subject of the sale a retro, unlike that
granted the owner of a land under Arts. 546 and
When an unrecorded pacto de retro sale was
547. Under Art. 1616, the seller a retro must pay
construed as an equitable mortgage, the plaintiff
for useful improvements introduced by the buyer
had the right to enforce his lien in a separate
a retro; otherwise, the latter may retain
proceeding notwithstanding the fact that he had
possession of the land until reimbursement is
failed to obtain judgment declaring him the sole
made. [Gargollo v. Duero, 1961]
and absolute owner of the land. [Heirs of Arches v.
Diaz, 1973]
Where the petition of the buyer in a pacto de retro D. LEGAL REDEMPTION
sale is for a judicial orders pursuant Art. 1607, so
that there may be consolidation of ownership [ART. 1619]
since there was failure to redeem during the D.1. DEFINITION
redemption period, the right of action to foreclose
or to collect the indebtedness arises from the (1) Right to be subrogated:
court judgment declaring the contract an (a) upon the same terms and conditions
equitable mortgage. stipulated in the contract,
(b) in the place of one who acquires a thing
by purchase or dation in payment, or by
C.6. EXERCISE OF THE RIGHT TO REDEEM any other transaction whereby ownership
is transmitted by onerous title [Art 1619,
[ART. 1616] CC]
The seller can avail himself of the right of (2) Applies to transfers of ownership by onerous
repurchase by returning to the buyer: title where subrogation is possible. Hence, it
(1) the price of the sale cannot apply to barter or to transfer by
(2) the expenses of the contract and any other gratuitous title or hereditary succession.
legitimate payments made by reason of the (3) Applies to sales with pacto de retro [Baviera
sale citing MANRESA]
(3) the necessary and useful expenses made on
the thing sold [Art.1616]. D.2. MANNER
C.7. HOW REDEMPTION IS EXERCISED (1) a formal offer to redeem or
(1) The vendor de retro must complete the (2) filing of an action in court together with the
repurchase before the expiration of the consignation of the redemption price within
redemption period [Panganiban v. Cuevas, 7 the reglementary period
Phil 477]. (3)
Substitution is the change of the previous debtor Payment to the original creditor is valid. The
by a new debtor with the credit remaining in the assignee has a right of action against the
same creditor. assignor, the original creditor. Burden of
proving that the debtor had knowledge of the
Subrogation is the change in the person of the
assignment is on the assignee. [Manresa
creditor with his credit being transferred to the
cited by De Leon]
new creditor.
(2) After notice, or before notice but debtor had
Dation in payment is the alienation of property to
knowledge of assignment
the creditor in satisfaction of a debt of in money.
Payment by the debto to the original creditor
It is also governed by the law on sales. It may be
after the former had received notice of the
legal or conventional.
assignment, whether or not he consented, is
not valid as against the assignee.
E. BINDING EFFECT If he had knowledge even before the notice
and still paid to the original creditor, he will
General rule: An assignment of a credit, right or
not be released from his obligation. He acted
action shall produce no effect as against third
in bad faith. He can be made to pay again.
persons.
[De Leon]
Note: No effect means no prejudice or damage
Exceptions:
(1) If it appears in a public instrument
H. EXTENT OF ASSIGNMENT OF CREDIT
(2) If it is recorded in the Registry of Property General rule: All the accessory rights (such as
in case the assignment involves real guaranty, mortgage, pledge or preference) are
property. included. (ART. 1627)
(3) The assignee cannot acquire greater rights
Exception: The parties may stipulate otherwise.
than those pertaining to the assignor. [Koa
[De Leon]
vs. Court of Appeals, 219 SCRA 541, 1993]
Art. 1626 The debtor who, before having
knowledge of the assignment, pays his I. WARRANTIES OF THE ASSIGNOR OF
creditor shall be released from the obligation. CREDIT
(1) When a credtor assigns his credit
F. CONSENT NOT NECESSARY (a) Existence
(b) Legality of credit at the perfection of the
Consent of debtor is not necessary; merely notice
contract
to him is necessary.
UNLESS the credit had been sold as
Hence, the duty to pay does not depend on the
doubtful
consent of the debtor; otherwise, all creditors
(2) No warranty as to the solvency of the debtor
would be prevented from assigning their credits
because of the possibility of the debtors’ refusal UNLESS it was expressly stipulated
to give consent. [Sison vs. Yap Tico, 27 Phil. 587,
UNLESS insolvency was already existing
1918]
PRIOR to the sale and of public knowledge at
The purpose of the notice by the assignee is to the time of the assignment
inform the debtor that from the date of the
assignment he should make payment to the
assignee and not to the original creditor. [supra] I.1. BREACH OF WARRANTIES
If there be any breach of the above warranties,
the assignor-vendor shall be held answerable
G. EFFECT OF PAYMENT BY DEBTOR therefor. [De Leon]
AFTER ASSIGNMENT OF CREDIT
(1) Before notice
I.2 LIABILITIES OF THE ASSIGNOR OF CREDIT
(1) The liability of assignor in good faith: Limited The subject of sale is hereditary right and not the
to the price received and to the expenses of the objects which make up the inheritance. [De Leon]
contract, and any other legitimate payments by
The seller of hereditary rights warrants only the
reason of the assignment.
fact of his heirship but he does not warrant the
(2) The liability of assignor in bad faith: Price, all objects which make up his inheritance. The sale is
expenses, and damages only a sort of an aleatory contract. [De Leon]
As distinguished form a waiver of hereditary rights
I.3 DURATION OF ASSIGNOR’S LIABILITY The waiver is a mode of extinction of ownership
WHERE DEBTOR’S SOLVENCY GUARANTEED where there is an abdication or intentional
[ART. 1629] relinquishment of a known right with knowledge
of its existence and intention to relinquish it, in
In case of express warranty by assignor of
favour of other persons who are co-heirs in the
debtor’s solvency
succession. (Acap v CA, 251 SCRA 30, 1995)
(1) If there is a stipulation, for the term or period
fixed
(2) If there is NO stipulation,
(a) For 1 year from the assignment of the K. SALE OF WHOLE OF CERTAIN RIGHTS,
credit when the period for payment of the RENTS, OR PRODUCTS
credit has expired In the sale of the whole of certain rights, rents, or
Example: Debtor owed OG Creditor 10k products for a lump sum, the subject matter is
payable on November 1, 2017. OG the totality of such rights, rents, or products.
Creditor assigns his credit to Newbie The vendor warrants only the legitimacy of the
Creditor on December 1, 2017. The whole and not the various parts of which it may
liability of OG Creditor will be for 1 year be composed. [De Leon]
from December 1, 2017.
General rule: Vendor is not liable for eviction of
(b) For 1 year after its maturity, when such any of the various parts of the whole
period for payment has not yet expired
Exceptions: Eviction involves the whole or the part
Example: (Same premise as above) If OG of greater value [ART. 1631]
Creditor assigns his credit to Newbie
Creditor on October 1, 2017, the liability of
OG Creditor will be 1 year from the L. LIABILITY OF VENDOR OF INHERITANCE
maturity date or November 1, 2018. FOR FRUITS RECEIVED
Reasons for this rule: General rule: Vendor shall pay the vendee if he
(i) To prevent fraud profited by the fruits or received anything from
(ii) To oblige assignee to exert efforts in the inheritance sold
the recovery of the credit [De Leon,
citing Manresa] Exception: If the contrary has been stipulated
N. LEGAL REDEMPTION IN SALE OF (2) To deliver the thing, with its accessions and
CREDIT OR OTHER INCORPOREAL RIGHT accessories, if any
IN LITIGATION (3) To warrant against eviction and against
hidden defects
N.1 REQUISITES FOR THE EXERCISE BY THE (4) To take care of the thing, pending delivery,
DEBTOR OF THE RIGHT OF LEGAL with proper diligence
REDEMPTION: (5) To pay for the expenses of the deed of sale
(1) There must be a sale or assignment of credit
or other incorporeal right.
(2) The credit or other incorporeal right must be
in litigation
(3) There must be a pending litigation at the
time of the assignment.
Note: The claim must be one which is actually
litigated (disputed or contested) – this
happens only after an answer is filed by the
creditor [Robinsons v Garry, 8 Phil. 275, 1907]
(4) The assignee must have demanded payment
from the debtor
(5) The debtor must reimburse the assignee:
(a) The price paid by him
(b) The judicial costs
(c) The interest on the price from the date of
payment
(6) The reimbursement must be made by the
debtor within 30 days from the date the
assignee demands, whether judicially or
extrajudicially, payment from him. [De Leon]
O. TRANSFER OF OWNERSHIP
OBLIGATIONS OF THE VENDOR
(1) To transfer ownership of the thing
If ownership has not yet passed to the buyer, The unpaid seller’s right to rescind for non-
the seller cannot maintain an action for the performance is not absolute. Not allowed to
price, unless it involves (b) or (c). rescind when:
(a) There are 3rd persons possessing the
Title to goods passes from the moment the
objects of the contract to whom no bad
goods are placed at the buyer’s disposal
faith is imputable [De Leon, Ocejo Perez
when refusal to accept is without just cause.
& Co. vs. International Bank (1918)]
[De Leon citing Art. 1588]
(b) Breach is on slight or casual [De Leon,
(2) Action for damages [Art. 1596] Song Fo & Co. vs. Hawaiian-Phil. Co.
(1925)]
When ownership has not yet passed and the
buyer, without lawful cause, neglects or The seller cannot unilaterally and
refuses to ACCEPT and PAY for the goods extrajudicially rescind a contract absent
express stipulation to do so, except as
General Rule: Measure of damages is the
provided in Art. 1597. [De Leon]
ESTIMATED LOSS directly and naturally
resulting in the ordinary course of events (4) Special rule for sale of movables by
from the buyer’s breach. installments – Recto Law [Arts. 1484, 1485]
Exceptions: Applies in cases of:
(a) Sale of movables in installment
(a) Where there is available market for goods:
Difference between the contract price and The rule is intended to apply to sales of movables,
the market price. The market price is fixed the price of which is payable in two or more
at the time the goods ought to have been installments, but not to straight-term sales where
accepted, or if no time was fixed, at the the price is payable in full, after making a down
time of refusal to accept. Note: When payment because the law aims to protect
there are special circumstances showing improvident buyers who may be tempted to buy
proximate damages of a greater amount beyond their means. [Levy Hermanos vs. Gervacio,
than the difference between the contract 1939]
price and market price, seller is entitled (b) Lease of personal property with option to
to such higher amount of damages when buy
such damages may be reasonably
attributed to the non-performance of the
obligation. [De Leon, Art. 1596 par. 3 read C. ALTERNATIVE REMEDIES OF THE
with Art. 2201 par. 2] UNPAID SELLER UNDER RECTO LAW
(b) Where labor or expense of material
amount is necessary on the part of the Note: Remedies are ALTERNATIVE, not
seller to perform the contract: Cost of cumulative. [Nonato vs. IAC, 1985]
labor performed or expenses made before (1) Specific Performance
receiving notice of buyer’s repudiation, (2) Cancellation of sale: If vendee fails to pay 2 or
and unrealized profit. more installments. Cancellation of sale bars
(3) Rescission by giving the buyer notice of the seller from recovering unpaid price [Nonato
election to rescind [Art. 1597] vs. IAC (1985)].
(3) Foreclosure of Chattel Mortgage: If vendee
When the goods have not yet been delivered fails to pay 2 or more installments
to the buyer, and the buyer repudiated the (a) If seller chooses this remedy, he shall
contract of sale, or manifested his inability to have no further action to recover any
perform his obligations, or has committed a unpaid balance, and any stipulation to
breach of the contract of sale. the contrary shall be void
Under this rule, rescission would bar an (b) What Art 1484 (3) prohibits is “further
action on the contract because it means action against the purchaser to recover
cancellation of the contractual obligations any unpaid balance of the price;” and
between the parties. [Baviera] although this Court has construed the
word “action” to mean “any judicial or
extrajudicial proceeding by virtue of
The owner or the real estate dealer interested in A license to sell and performance bond shall not
the sale of lots or units, respectively, in such be required in any of the following transactions:
subdivision project or condominium project shall (1) Sale of a subdivision lot resulting from the
register the project with the Authority by filing partition of land among co-owners and co-
therewith a sworn registration statement. heirs.
(2) Sale or transfer of a subdivision lot by the
Publication and issuance of registration certificate
original purchaser thereof and any
[Section 4, PD 957]
subsequent sale of the same lot.
A notice of the filing of the registration statement (3) Sale of a subdivision lot or a condominium
at the expense of the applicant-owner or dealer, unit by or for the account of a mortgagee in
in two newspapers general circulation, one the ordinary course of business when
published in English and another in Filipino, once necessary to liquidate a bona fide debt.
a week for two consecutive weeks. Notice shall
(iii) Grounds for suspension of license to sell
state that subdivision lots or condominium units
[Section 8, PD 957]
are open to inspection during business hours by
interested parties. The project shall be deemed (1) misleading, incorrect, inadequate, or
registered upon completion of the publication incomplete information in registration
requirement. The fact of registration shall be statement
evidenced by a registration certificate issued to (2) fraud upon prospective buyers on the sale or
the applicant-owner or dealer. offering for a sale
Note: suspension is confidential unless order of
suspension has been violated.
B.3. LICENSE TO SELL [SECTION 5, PD 957]
(iv) Grounds for revocation of registration
The registration certificate does NOT authorize
certificate and license to sell [Section 9, PD 957]
the owner or dealer to sell any unit. They must
first obtain a license to sell within two weeks from (1) Insolvency of owner/dealer
the registration of the project. The license to sell (2) Violation of owner of PD 957 or its IRR or any
is issued upon examination of the registration undertaking of his/its performance bond
statement filed by the owner or dealer showing (3) Has been or is engaged or is about to engage
that: in fraudulent transactions
(1) the owner or dealer is of good repute (4) Misrepresentation in any prospectus,
(2) that his business is financially stable brochure, circular or other literature about
(3) that the proposed sale of subdivision lots or the subdivision project or condominium
condominium units to the public would not project that has been distributed to
be fraudulent prospective buyers
(5) Bad business repute of owner/dealer
(i) Performance bond [Section 6, PD 957]
(6) Does not conduct his business in accordance
A license to sell can only be issued by the NHA if with law or sound business principles
the owner or dealer files a performance bond
guaranteeing the construction and maintenance
of the roads, gutters, drainage, sewerage, water C. REQUIREMENT FOR DEALERS,
system, lighting systems, and full development of BROKERS, AND SALESMEN (DBS)
the subdivision project or the condominium
project and the compliance by the owner or C.1. REGISTRATION
dealer with the applicable laws and rules and (1) Dealers, brokers, and salesmen (DBS) must be
regulations. The bond shall be executed in favor registered (Section 11, PD 957)
of the Republic of the Philippines and shall
authorize the Authority to use the proceeds Requisites of registration:
thereof for the purposes of its undertaking in case (a) Good reputation and compliance with
of forfeiture as provided in this Decree. NHA rules
(b) Payment of prescribed fee
(ii) When license to sell and performance bond not (c) Filing of bond or other security (amount
required [Section 7, PD 957] fixed by NHA) conditioned upon his
B. TRANSFERS OR CONVEYANCES OF A
UNIT OR AN APARTMENT, OFFICE OR
STORE, OR OTHER SPACE THEREIN
[SECTION 5, RA 4726]
(1) Transfer or conveyance of a unit or a space
therein includes the transfer or conveyance of
(a) undivided interests in common areas
(b) membership or shareholding in the
condominium corporation
(2) Proviso: only Filipino citizens or corporations
at least 60% of the capital stock are owned
by Filipino citizens may be the transferee of in the common areas are opposed to repair or
common areas in cases where the common restoration of the project
areas are owned by the owners of separate (3) That the project has been in existence in
units as co-owners (not by condominium excess of 50 years, that it is obsolete and
corporation) uneconomic, and that condominium owners
(3) Exception to proviso: hereditary succession. holding in aggregate more than 50% interest
in the common areas are opposed to repair or
Shareholdings in a condominium corporation
restoration or remodeling or modernizing of
may be conveyed only in a proper case. Not every
the project
purchaser of a condominium unit is a shareholder
(4) That the project or a material part thereof has
of a condominium corporation. The
been condemned or expropriated and that
Condominium Act leaves to the Master Deed the
the project is no longer viable, or that the
determination of when the shareholding will be
condominium owners holding in aggregate
transferred the buyer of the unit. But ownership
more than 70% interest in the common areas
of a unit is an indispensable requisite to being a
are opposed to continuation of the
shareholder in the corporation. [Sunset View
condominium regime after expropriation or
Condominium Corporation v. Campos (1981)]
condemnation of a material portion thereof
(5) That the conditions for such partition by sale
C. RIGHTS OF A CONDOMINIUM UNIT set forth in the declaration of restrictions,
OWNER (ASIDE FROM RIGHTS ARISING duly registered in accordance with the terms
FROM OWNERSHIP) [SECTION 6] of the Condominium Act, have been met.
(1) Absolute right to sell or dispose of his
condominium unless there is a right of first E. DECLARATION OF RESTRICTIONS BY
refusal in favor of condominium owners OWNER OF PROJECT - PRECONDITION TO
(2) Exclusive right to mortgage, pledge or CONVEYANCE [SECTION 9]
encumber his condominium and to have the
(1) The owner must register with the Register of
same appraised independently of the other
Deeds a declaration of restrictions before the
condominiums but any obligation incurred by
conveyance of any condominium in the
such condominium owner is personal to him
project
(2) The restrictions constitute a lien upon each
D. PARTITION BY SALE [SECTION 8] condominium in the project and shall insure
to and bind all condominium owners in the
This is an action that may be brought by one or
project
more persons owning condominiums in a
(3) The lien may be enforced by any
condominium project for the partition of the condominium owner or by the management
project by the sale thereof. The effect is as if the
body of the project
owners of all the condominiums in such project
were co-owners of the entire project in the same
proportion as their interests as their interests in F. ASSESSMENT IN ACCORDANCE WITH
the common areas. DECLARATION OF RESTRICTIONS
A partition by sale can only be done upon [SECTION 20]
showing any of the following: This is the "tax imposition power" of the
(1) That three years after damage or destruction condominium corporation. If unpaid, the
to the project which renders material part management body may cause a notice of
thereof unfit for its use prior thereto, the assessment to be registered with the Register of
project has not been rebuilt or repaired Deeds, which may be released only upon
substantially to its state prior to its damage payment of the assessed fees. This lien is superior
or destruction to all other subsequent liens except real property
(2) That damage or destruction to the project has taxes liens and other liens provided for in the
rendered one-half or more of the units therein declaration of restrictions.
untenantable and that condominium owners
holding in aggregate more than 30% interest
CIVIL LAW
SUCCESSION
prescribed by the law [Art. 783, CC; used to ascertain the intention of the
Balane] testator
• Oral declarations of the testator as to
iii. Rules of Construction and Interpretation his intention must be excluded. [Art
[Arts. 788-795] 789, CC]
Kinds of Ambiguities
Main principle: Testacy is preferred to Patent Ambiguity Latent Ambiguity
intestacy and the intent of the testator is
paramount and must be given effect as far as one which appears one which cannot be
legally possible. upon the face of the seen from the reading
(1) Giving effect to the will instrument of the will but which
appears only upon
(a) If the testamentary disposition admits consideration of
of different interpretations, in case of extrinsic
doubt, that interpretation by which circumstances
the disposition is to be operative shall
be preferred. [Art. 788]
(b) The words of a will are to receive an Note: There is no real difference in the
interpretation which will give to every prescribed solution for either latent or patent
expression some effect, rather than ambiguity. In either case, extrinsic evidence
one which will render any of the or evidence of external circumstances can be
expressions inoperative. [Art. 791] considered. Moreover, in either case, the oral
(c) Of two modes of interpreting a will, declarations of the testator are excluded.
that is to be preferred which will
prevent intestacy. [Art. 791]
iv. Governing Laws, In General
(2) Words to be taken in their ordinary and
Aspect of the
grammatical sense unless there is a clear Governing Law
Will
intention to use them in another sense
[Art. 790, CC] Formal Validity Law in force at the time the
will was executed [Art. 795,
(3) Technical words are to be taken in their CC]
technical sense unless there is a contrary
intention or when testator was Intrinsic Validity Law of decedent’s
unacquainted with such technical sense nationality at the time of his
[Art. 790, CC] death [Arts. 16 and 2263,
CC]
(4) Severability of provisions – Invalidity of
one of several dispositions does not result
in invalidity of others unless the testator Aspects of the Will Governed by the National
would not have made such dispositions if Law of the Decedent:
the first invalid disposition had not been
made [Art. 792, CC] (1) Order of succession;
(2) Amount of successional rights;
(5) Every devise and legacy shall convey all the
interest unless it clearly appears the (3) Intrinsic validity of testamentary
intention was to convey a less interest provisions; and
[Art. 794, CC] (4) Capacity to succeed [Art. 16, CC]
(6) Where there are ambiguities (i.e.
imperfect description or no person or A.2. TESTAMENTARY CAPACITY AND
property exactly answers to the INTENT
description, mistakes, omissions),
intrinsic or extrinsic evidence may be
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Effect of Omissions
(2) Attestation Clause: Attested and
subscribed by 3 or more credible (1) Omissions can be supplied by an
witnesses in the presence of the testator examination of the will itself, without
and of one another [Art. 805, CC] the need of resorting to extrinsic
evidence, will not be fatal and will not
prevent allowance of the will.
Attestation Subscription
HOLOGRAPHIC WILLS
(b) Blind [Art. 808, CC] Formal Requirements for Holographic Wills
• The will shall be read to the (a) In writing [Art. 804, CC]
testator twice - By one of the
subscribing witnesses and by the (b) In a language known to the testator [Art.
notary public acknowledging the 804, CC]
will. (c) Entirely written, dated and signed in the
• A testator suffering from glaucoma hand of the testator himself [Art. 810, CC]
may be considered as legally blind
[Garcia v. Vasquez (1970)]
Advantages Disadvantages
(7) Witnesses
Simple and easy to No guarantee as to
Qualifications [Art. 820, CC] make the capacity of the
(1) Of sound mind testator
Induces foreigners in
(2) Aged 18 years or over this jurisdiction to set No protection against
(3) Not blind, deaf or dumb down their last wishes violence, intimidation
or undue influence
(4) Able to read and write Guarantees the
absolute secrecy of May not faithfully
the testamentary express the will of the
Disqualifications [Art. 821, CC] dispositions testator due to faulty
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UP LAW BOC SUCCESSION CIVIL LAW
(4) by which any disposition made in the Philippines Philippines, Philippine Law
original will is explained, added to, or or some other
altered. country
(5) in order that it may be effective, it shall Philippines (1) Law of
be executed as in the case of a will. [Arts. (This situation Domicile -
825-826, CC] is not Philippine law
governed by
(2) Law of lace of
Art. 829)
A.5. INCORPORATION BY REFERENCE Outside the Revocation
Philippines
Requisites [Art. 827, CC] (3) Law of Place
of Execution of
(a) The document or paper referred to in the Will [Balane]
will must be in existence at the time of
the execution of the will. Foreign (1) Law of the
(b) The will must clearly describe and Country Place of
identify the same, stating among other Execution of
things the number of pages thereof. Will; or
(2) Law of the
(c) It must be identified by clear and place in
satisfactory proof as the document or which the
paper referred to therein; and testator had
(d) It must be signed by the testator and the his domicile
witnesses on each and every page, except at the time of
in case of voluminous books of account or revocation
inventories.
hence prevents the revocation of the original accordance with the Rules of Court [Art. 838,
will. CC]
contains only one property to be (4) If the testator was insane or otherwise
adjudicated upon. [Portugal v. Portugal- mentally incapable of making a will at
Beltran (2005)] the time of its execution;
(5) If the formalities required by law have not
been complied with; or
Revocation vs. Disallowance
Revocation Disallowance (6) If it was executed through force or under
duress, or the influence of fear, or threats.
Voluntary act of the Given by judicial [Art. 839, CC]
testator decree
The probate of a will by the probate court In such cases, the testamentary dispositions
having jurisdiction thereof is usually made in accordance with law shall be
considered as conclusive as to its due complied with and the remainder of the
execution and validity, and is also conclusive estate shall pass to the legal heirs. [Art. 841,
that the testator was of sound and disposing CC]
mind at the time when he executed the will,
and was not acting under duress, menace,
fraud, or undue influence, and that the will is Extent Of Grant [Art. 842, CC]
genuine and not a forgery. [Mercado v. Santos Freedom of disposition depends upon the
(1938)] existence, kind and number of compulsory
heirs.
ii. Grounds for Denying Probate • No compulsory heirs – Testator has full
(1) If the signature of the testator was power of disposition
procured by fraud; • One with compulsory heirs cannot
(2) If it was procured by undue and improper disregard the rights of the latter; may only
pressure and influence, on the part of the dispose of the free portion of his estate
beneficiary or some other person;
(3) If the testator acted by mistake or did not Effect Of Predecease Of Heir [Art. 856, CC]
intend that the instrument he signed
should be his will at the time affixing his Any heir who dies before the testator or is
signature thereto; incapacitated to succeed or renounces the
inheritance transmits no rights of the testator
to his own heirs. This is without prejudice to Every disposition in favor of an unknown
the rights of representation. [Tolentino] person shall be void, unless by some event or
circumstance his identity becomes certain.
A disposition in favor of a definite class or
MANNER OF INSTITUTION
group of persons shall be valid. [Art. 845, CC]
Rules on Identity of Heirs [Arts. 843-849, CC]
The heir must be designated with sufficient
clarity INTENT OF THE TESTATOR
False Cause [Art. 850, CC]
• If an unknown person is instituted, the
disposition is void (unless by some event, The statement of a false cause for the
the identity becomes certain) institution of an heir shall be considered as
not written unless it appears from the will
• If a definite class or group of persons is
that the testator would not have made such
instituted, institution is valid.
institution if he had known the falsity of such
cause.
The heir shall be designated by name or
surname.
Falsity of stated cause for institution will set
• If there are two or more persons with the aside or annul the institution if the following
same names, indicate some circumstance are present [Austria v. Reyes (1973)]:
by which the heir may be known.
(1) The cause for the institution is stated in
• Even though the name may have been the will
omitted but there can be no doubt as to
(2) The cause is shown to be false
who has been instituted, the institution is
valid. (3) It appears on the face of the will that the
testator would not have made such
• If there is error in the name but identity can
institution if he had known the falsity of
still be identified through other proof,
the cause.
institution is still valid.
• If heir is unidentifiable, none is deemed
instituted. SCOPE OF INSTITUTION [Arts. 852-853, CC]
(1) There are more than one instituted heir
MANNER OF DISTRIBUTION (2) The testator intended them to get the
• Heirs instituted without designation of whole estate or the whole disposable
shares shall inherit in equal parts [Art. 846] portion
• If the institution pertains to some heirs (3) The testator has designated a definite
individually and others collectively, the portion for each heir
presumption is that all are individually
(4) Under Art. 852: the total of all portions is
instituted. [Art. 847]
less than the whole estate (or free
• If siblings are instituted (whether full or portion)
half-blood), the presumption is that the
• Therefore, a proportionate increase is
inheritance is to be distributed equally [Art.
necessary
848]. This is different from the rules of
distribution in intestate succession. • The difference cannot pass by intestacy
because the intention of the testator is
• If parents and children are instituted, they
clear—to give the instituted heirs the
are presumed to have been instituted
entire amount
simultaneously and not successively. [Art.
849]
(5) Under Art. 853: The total exceeds the
whole estate (or free portion)
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Situation 3: If the first heir dies, followed by Effect: Entire disposition is void
the testator, then the second heir, who will
inherit? No specific provision in law, but SH
inherits because the T intended him to Potestative, Casual and Mixed Conditions
inherit.
(1) Potestative Conditions
D. TESTAMENTARY DISPOSITIONS Depends solely on the will of the heir
WITH A CONDITION, A TERM, AND A
MODE General rule: Must be fulfilled as soon as
the heir learns of the testator’s death
Exception: If the condition was already
3 Kinds of Testamentary Dispositions complied with at the time the heir learns
(1) Conditional [Art. 871, CC] of the testator’s death; or if the condition
(2) Dispositions with a term [Art. 885, CC] is of such a nature that it cannot be
(3) Dispositions with a mode/modal fulfilled again.
dispositions [Art. 882, CC]
Constructive Compliance: deemed
fulfilled
CONDITIONAL DISPOSITIONS
Basis of testator’s right to impose conditions,
terms or modes: Testamentary freedom (2) Casual or mixed
Casual condition – one whose fulfillment
Prohibited conditions: (considered as not depends on chance or the will of a third
imposed) person.
General rule: May be fulfilled at any time A mode functions similarly to a resolutory
(before or after testator’s death), unless condition.
testator provides otherwise.
In modal institutions, the testator states (1)
the object of the institution, (2) the purpose
or application of the property left by the
Exception: If already fulfilled at the time
testator, or (3) the charge imposed by the
of execution of will:
testator upon the heir. [Rabadilla v. CA
(1) if testator unaware of the fact of (2000)]
fulfillment – deemed fulfilled
Caución Muciana
(2) if testator aware:
• can no longer be fulfilled again: A security to guarantee the return of the
deemed fulfilled value of property, fruits, and interests, in case
of contravention of condition, term or mode
• can be fulfilled again: must be
fulfilled again. Instances when it is needed:
(1) Suspensive term [Art. 885,CC]
Constructive Compliance: (2) Negative potestative condition - when the
• if casual – not applicable condition imposed upon the heir is
• if mixed – applicable only if dependent negative, or consists in not doing or not
partly on the will of a third party not giving something [Art. 879, CC]
interested. (3) Mode [Art. 882, par 2, CC]
5 1 LC, SS, ILC 1/2 1/4 (preferred) 1/2 share of 1 LC (for each
child)
6 2 or more LC, SS, 1/2 in equal Same as share of 1LC 1/2 share of 1 LC (for each
ILC portions child)
7 LP alone 1/2
13 SS alone ½
Exception: marriage in
articulo mortis and testator
dies within 3 months from
marriage – 1/3
Steps in Determining the Legitime of Compulsory by operation of law for the benefit of relatives
Heirs who are within the third degree and who belong
(1) Determine the gross value of the estate at to the line from which said property came.
the time of the death of the testator.
(2) Determine all debts and charges which are
chargeable against the estate. Concept of Reserva Troncal
(1) A descendant (prepositus) inherits or
(3) Determine the net value of the estate by acquires property from an ascendant or from
deducting all the debts and charges from a brother or sister (origin or mediate source)
the gross value of the estate. by gratuitous title
(4) Collate or add the value of all donations (2) The same property is inherited by another
inter vivos to the net value of the estate. ascendant (reservista) or is otherwise
(5) Determine the amount of the legitime from acquired by him by operation of law from the
the total thus found. said descendant (prepositus)
(6) Impute the value of all donations inter vivos (3) The said ascendant (reservista) must reserve
made to strangers against the disposable the property for the benefit of the relatives of
free portion and restore it to the estate if the the deceased descendant within the third
donation is inofficious. civil degree and who belong to the line from
which the said property came (reservatarios).
(7) Distribute the residue of the estate in
accordance with the will of the testator. Parties: [Balane at 371]
(1) Origin or Mediate Source – either an
ascendant of any degree of ascent or a
Remedy of a Compulsory Heir in case of brother or sister of the Prepositus;
Impairment of Legitime responsible for the 1st transfer
Extent and Nature of (2) Prepositus – the first transferee of the
Remedy
Impairment reserved property
Total omission of a Annulment of (3) Reservista – an ascendant of the Prepositus
compulsory heir who is institution and other than the Origin or Mediate Source; the
a direct descendant or reduction of legacies one obligated to reserve the property
ascendant (preterition) and devises [Art. 854,
CC] (4) Reservatarios – within the 3rd degree of
consanguinity from the Prepositus [Cabardo
Testamentary Reduction of the v. Villanueva (1922)] belonging to the line
dispositions impairing disposition insofar as from which the property came
or diminishing the they may be inofficious
legitime or excessive [Art. 907,
CC] Requisites for Reserva Troncal [Chua vs. CFI
(1977)]:
Partial impairment Completion of the (a) That the property was acquired by a
legitime [Art. 906, CC] descendant (Prepositus) from an ascendant
or from a brother or sister (Origin or Mediate
Impairment by Collation – reduction of Source) by gratuitous title,
inofficious donations donations [Arts. 771 and
911, CC] (b) That the Prepositus died without
(legitimate*) issue,
RESERVA TRONCAL (c) That the property is inherited by another
Art. 891, CC. The ascendant who inherits from his ascendant (Reservista) by operation of law,
descendant any property which the latter may and
have acquired by gratuitous title from another (d) That there are relatives within the 3rd degree
ascendant, or a brother or sister, is obliged to (Reservatarios) belonging to the line from
reserve such property as he may have acquired which said property came.
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*Only legitimate descendants will prevent the (2) In his will, he institutes as his heir his
property from being inherited by the legitimate ascendant (who is also a compulsory heir)
ascending line by operation of law [Balane] such that the ascendant receives half of the
estate by operation of law as legitime and
the other half by testamentary disposition
Three transmissions involved: [Balane at 366-
Two Views
367]
(1) Reserva Maxima: As much of the potentially
(1) 1st transfer – by gratuitous title, from a
reservable property as possible must be
person to his descendant, brother or sister
deemed included in the part that passes by
(2) 2nd transfer – by operation of law, from the operation of law (maximizing the scope of
transferee in the 1st transfer to another the reserva)
ascendant. This creates the reserva. (2) Reserva Minima: every single property in the
prepositus’s estate must be deemed to pass,
(3) 3rd transfer – from the transferee in the
partly by will and partly by operation of law,
second transfer to the relatives
in the same proportion that the part given by
will bears to the part not so given [Balane]
JURIDICAL NATURE OF RIGHTS
Nature of the reservista’s right: [Edroso v. Sablan Either view is defensible, but Reserva Minima
(1913)] finds wider acceptance in the Philippines
• The reservista’s right over the reserved [Balane]
property is one of ownership
(d) It must be made expressly, stating the cause (2) When the parent or ascendant has been
in the will itself. convicted of an attempt against the life of
(e) The cause must be certain and true, and the testator, his or her spouse, descendants,
must be proved by the interested heir if the or ascendants;
person should deny it.
(3) When the parent or ascendant has accused
(f) It must be unconditional.
the testator of a crime for which the law
(g) It must be total.
prescribes imprisonment for six years or
more, if the accusation has been found to be
F.1. DISINHERITANCE OF CHILDREN AND false;
DESCENDANTS
(4) When the parent or ascendant has been
[Art. 919, CC] convicted of adultery or concubinage with
the spouse of the testator;
(1) When a child or descendant has been found (5) When the parent or ascendant by fraud,
guilty of an attempt against the life of the violence, intimidation, or undue influence
testator, his or her spouse, descendants, or causes the testator to make a will or to
ascendants; change one already made;
(2) When a child or descendant has accused the (6) The loss of parental authority for causes
testator of a crime for which the law specified in this Code;
prescribes imprisonment for six years or
(7) The refusal to support the children or
more, if the accusation has been found
descendants without justifiable cause;
groundless;
(8) An attempt by one of the parents against the
(3) When a child or descendant has been
life of the other, unless there has been a
convicted of adultery or concubinage with
reconciliation between them.
the spouse of the testator;
(4) When a child or descendant by fraud,
violence, intimidation, or undue influence F.3. DISINHERITANCE OF A SPOUSE
causes the testator to make a will or to
[Art. 921, CC]
change one already made;
(5) A refusal without justifiable cause to support (1) When the spouse has been convicted of an
the parent or ascendant who disinherits such
attempt against the life of the testator, his or
child or descendant;
her descendants, or ascendants;
(6) Maltreatment of the testator by word or
(2) When the spouse has accused the testator of
deed, by the child or descendant;
a crime for which the law prescribes
(7) When a child or descendant leads a imprisonment of six years or more, and the
dishonorable or disgraceful life; accusation has been found to be false;
(8) Conviction of a crime which carries with it (3) When the spouse by fraud, violence,
the penalty of civil interdiction. intimidation, or undue influence cause the
testator to make a will or to change one
already made;
F.2. DISINHERITANCE OF PARENTS AND
(4) When the spouse has given cause for legal
ASCENDANTS
separation;
[Art. 920, CC]
(5) When the spouse has given grounds for the
loss of parental authority;
(1) When the parents have abandoned their
(6) Unjustifiable refusal to support the children
children or induced their daughters to live a
or the other spouse.
corrupt or immoral life, or attempted against
their virtue;
Modes of Revocation of Disinheritance (3) The cause is not among those specified in
(1) Reconciliation [Art. 922, CC] the provisions.
(2) Subsequent institution of the disinherited
heir
(3) Nullity of the will which contains the Effect of Ineffective Disinheritance: if the
disinheritance. disinheritance lacks one or other of the
requisites mentioned in this article, the heir in
question gets his legitime. [Balane]
Note: The moment that testator uses one of the
acts of unworthiness as a cause for
disinheritance; he thereby submits it to the rules
on disinheritance. Thus, reconciliation renders
the disinheritance ineffective. Ineffective
Preterition
Disinheritance
Credit or remission or • Effective only as regards the credit or debt existing at the time of the
release of a debt testator’s death
• Legacy lapses if the testator later brings action against the debtor
• If generic, comprises all credits/debts existing at time of execution of will
Thing pledged by debtor Only the pledge is extinguished; the debt remains
To a creditor Shall not be applied to his credit unless the testator so declares
Order of payment of a debt • If testator does not really owe the debt, the disposition is void
• If the order is to pay more than the debt, the excess is not due
• This is without prejudice to the payment of natural obligations
Alternative legacies and • The choice is with the heir, or the executor or administrator
devises
• If the heir, legatee or devisee dies, the right passes to their heirs
• Once made, the choice is irrevocable
Legacy of generic personal • Legacy is valid even if there are no things of the same kind in the estate
property or indeterminate
real property • Devise of indeterminate real property valid only if there are immovable
property of the same kind in the estate
• The choice belongs to the heir, legatee or devisee or the executor or
administrator
Legacy of education • Lasts until the legatee is of age or beyond the age of majority in order that
he may finish some professional, vocational or general course provided he
pursues his course diligently
• If testator did not fix the amount, it is fixed in accordance with the social
standing and circumstances of the legatee and the value of the estate
Order of Payment in Case the Estate Is Not Sufficient to Cover All the Legacies and Devises
Art. 911 Art. 950
Order of Preference
Application
• When the reduction is necessary to preserve the • When there are no compulsory heirs and the entire
legitime of compulsory heirs from impairment whether estate is distributed by the testator as legacies or
there are donations inter vivos or not; or devises; or
• When, although, the legitime has been preserved by • When there are compulsory heirs but their legitime has
the testator himself there are donations inter vivos. already been provided for by the testator and there are
no donations inter vivos.
Delivery of Legacy/Devise [Art. 951, CC] Revocation of Legacies and Devises [Art. 957, CC]
(1) The very thing bequeathed shall be delivered (1) Testator transforms the thing such that it does
and not its value not retain its original form or denomination
(2) With all its accessions and accessories (2) Testator alienates the thing by any title or for
any cause. Reacquisition of the thing by the
(3) In the condition in which it may be upon the
testator does not make the legacy or devise
death of the testator
valid, unless it is effected by right of
(4) Legacies of money must be paid in cash repurchase.
(3) Thing is totally lost during the lifetime or after
the death of the testator
Effect of ineffective legacies or devises [Art. 956,
CC] (4) Other causes: nullity of will, non-compliance
with suspensive condition, sale of the thing to
In case of repudiation, revocation or incapacity of
pay the debts of the deceased during the
the legatee or devisee, the legacy or devise shall
be merged with the mass of the hereditary estate, settlement of his estate.
except in cases of substitution or accretion.
the right of representation when it survives, the other collateral relatives and
properly takes place. the state are excluded.
• If any of the heirs concur in legitimes, then
they also concur in intestacy.
(3) Rule of Equal Division
A.1. RELATIONSHIP
• The relatives who are in the same
degree shall inherit in equal shares. The number of generations determines the
[Arts. 962(2), 987 and 1006, CC] proximity of the relationship. Each generation
forms one degree. [Art. 963, CC]
Exceptions: [Balane]
(a) Rule of preference between Lines A series of degrees forms a line. This line may
either be direct or collateral. [Art. 964, CC]
(b) Distinction between legitimate and
illegitimate filiation. The ratio under • A direct line is that constituted by the series
present law is 2:1. [Art. 983, in relation of degrees among ascendants and
to Art. 895 as amended by Art. 176, descendants.
FC] • The direct line is either ascending (brings a
(c) Rule of division by line in the person with those from whom he descends)
ascending line [Art. 987 (2), CC] and descending (connecting the head of
(d) Distinction between full-blood and the family with those who descend from
half-blood relationship among him). [Art. 965, CC]
brothers and sisters, as well as • A collateral line is that constituted by the
nephews and nieces. [Art. 1006 and series of degrees among persons who are
1008, CC] not ascendants or descendants, but who
(e) Right of representation. come from a common ancestor.
(4) Rule of Barrier between the legitimate Note: It is important to distinguish between
family and the illegitimate family (the direct and collateral, as the direct has
iron-curtain rule) preference over the collateral.
The illegitimate family cannot inherit by
intestate succession from the legitimate In a line, as many degrees are counted as
family and vice-versa. [Art. 992, CC] there are generations. [Art. 966, CC]
(1) In the direct line, ascent is made up to the
(5) Rule of Double Share for full blood common ancestor or progenitor.
collaterals (2) In the collateral line, ascent is made to
the common ancestor. Then descent to
When full and half-blood brothers or the person with whom the computation is
sisters, nephews or nieces, survive, the to be made.
full blood shall take a portion in the
inheritance double that of the half-blood.
[Arts. 895 and 983, CC] Note: Descending line is preferred over
ascending.
Note:
Blood relationship is either full or half-blood.
• If one of the legitimate ascendants, [Art. 967, CC]
illegitimate parents, legitimate children or
illegitimate children survives, the brother, Note: As among brothers and sisters and
sisters, nephews, and nieces (BSNN) are nephews and nieces, there is a 2:1 ratio for
excluded. full-blood and half-blood relatives. Direct
• If one of the legitimate ascendants, relatives are preferred. But this distinction
illegitimate parents, legitimate children, does not apply with respect to other
illegitimate children or surviving spouse collateral relatives.
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5 Brothers and sisters, nephews, Illegitimate brothers and sisters, Brothers and sisters, nephews,
nieces (BS/NN) nephews, nieces (IBS/NN) nieces (BS/NN)
7 State
Siblings, Nephews, All other collaterals and LC, ILC, LP, ILP SS
Nieces
State
Other collaterals within Collateral more remote LC, ILC, LP, ILP and SS Collaterals in the same
5th degree in degree and State degree
Ensure that the legitime of the legitimate and nieces inheriting by representation, if
children and the spouse are first satisfied. proper; Note that all the other relatives
should be “illegitimate” because of the iron-
(5) Legitimate parents only
curtain rule. [Art. 994, CC]
Divide the entire estate equally. [Art. 985]
(16) Illegitimate parents only
(6) Legitimate ascendants only (excluding
Entire estate goes to the illegitimate parents.
parents)
[Art. 993, CC]
Divide the entire estate equally but with the
(17) Illegitimate parents and children of any kind
observance of the rule of division by line. [Art.
(whether legitimate or illegitimate child)
987
Illegitimate parents are excluded and do not
(7) Legitimate parents and illegitimate children
inherit. For the rule on the respective shares
Legitimate parents get ½ of the estate, of the children, see numbers 1, 2 or 10,
illegitimate children get the other ½. [Art. whichever is applicable.
991]
(18) Legitimate brothers and sisters only
(8) Legitimate parents and surviving spouse
Divide the entire estate such that full-blood
Legitimate parents get ½ of the estate; The brothers/sisters gets a share double the
surviving spouse gets the other ½. [Art. 997] amount of a half-blood brother or sister. [Art.
1004 and 1006, CC]
(9) Legitimate parents, surviving spouse and
illegitimate children (19) Legitimate brothers and sisters, nephews and
nieces
Legitimate parents get ½ of the estate;
surviving spouse and the illegitimate child Divide the entire estate observing the 2 is to 1
each get ¼ each, the latter to share among ratio for full and half-blood relationships with
themselves if more than one. [Art. 1000] respect to the brothers and sisters, with the
nephews and nieces inheriting by
(10) Illegitimate children only
representation, if proper. [Art. 1005 & 1008,
Divide the entire estate equally. [Art. 988 CC]
(11) Illegitimate children and surviving spouse (20) Nephews and nieces only
Illegitimate children get ½ of the estate; the Divide the entire estate per capita, observing
surviving spouse gets the other ½. [Art. 998] the 2 is to 1 ratio. [Arts. 975 and 1008, CC]
(12) Surviving spouse only (21) Other collaterals [Arts. 1009 and 1010]
Entire estate goes to the surviving spouse. Divide entire estate per capita. Collateral
[Art. 994/995] relatives must be with the 5th degree of
(13) Surviving spouse and illegitimate parents consanguinity.
Illegitimate parents get ½ and the spouse Note: the nearer relative excludes the more
gets the other ½. [by analogy with Art. 997 remote relatives.
Disinheritance Representation - -
Intestate Succession
(3) Those made in favor of a public officer or writing in which the unworthy heir with
his spouse, descendants and ascendants, decedent condones knowledge of the
by reason of his public office. the cause of cause of incapacity
incapacity
Based on acts of unworthiness [Art. 1032, CC] Cannot be revoked Revoked when the
The following are incapable of succeeding by testator revokes the
reason of unworthiness: will or the institution
(1) Parents who have abandoned their
children or induced their daughters to
lead a corrupt or immoral life, or Effect of Pardon
attempted against their virtue; Once the act of unworthiness has been
(2) Any person who has been convicted of an pardoned, whether expressly or tacitly, the
attempt against the life of the testator, heir is restored to full capacity to succeed the
his or her spouse, descendants, or decedent, as if the cause of unworthiness had
ascendants; never existed.
(3) Any person who has accused the testator
of a crime for which the law prescribes
imprisonment for six years or more, if the
accusation has been found groundless; Unworthiness vs. Disinheritance
Unworthiness Disinheritance
(4) Any heir of full age who, having
knowledge of the violent death of the Unworthiness renders Disinheritance is the
testator, should fail to report it to an a person incapable of act by which a
officer of the law within a month, unless succeeding to the testator, for just
the authorities have already taken action; succession, whether cause, deprives a
this prohibition shall not apply to cases testate or intestate compulsory heir of his
wherein, according to law, there is no right to the legitime
obligation to make an accusation; [Art. 815, CC]
(5) Any person convicted of adultery or
concubinage with the spouse of the
testator; Determination of Capacity [Tolentino p. 539]
(6) Any person who by fraud, violence, General Rule: At the death of the decedent
intimidation, or undue influence should [Art. 1034, CC]
cause the testator to make a will or to
change one already made;
Exceptions:
(7) Any person who by the same means
prevents another from making a will, or (1) Those falling under 2, 3, and 5 of Art.
from revoking one already made, or who 1032 – when the final judgment is
supplants, conceals, or alters the latter's rendered
will; (2) Those falling under 4 of Art. 1032 – when
the month allowed for the report expired
(8) Any person who falsifies or forges a (3) If the institution is conditional – when the
supposed will of the decedent. condition is complied with
Pardon of Acts of Unworthiness
C. ACCEPTANCE AND REPUDIATION
Express Implied
OF THE INHERITANCE
Made by the Effected when the
execution of a testator makes a will
document or any instituting the Definition of Acceptance
The act by which the person called to succeed court having jurisdiction whether they
by universal title either by the testator or by accept or repudiate the inheritance; if
law manifests his will of making his own the they do not do so within that time, they
universality of the rights and obligations are deemed to have accepted the
which are transmitted to him. [Tolentino] inheritance. [Art 1057, CC]
(3) Implied Acceptance - Within thirty days HEIRS IN TWO CAPACITIES [Art. 1055, CC]
after the court has issued an order for the
distribution of the estate in accordance (1) If a person is called to the same
with the Rules of Court, the heirs, inheritance as an heir by will and by law
devisees and legatees shall signify to the and he repudiates the inheritance in his
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capacity as a testamentary heir, he will be Rationale for collation: If donations inter vivos
considered to have also repudiated the will not be collated, then the rule on
inheritance as a legal heir. legitimes shall be circumvented or
disregarded.
It is the act by virtue of which, the compulsory Note: Grandchildren may inherit from their
heir who concurs with other compulsory heirs grandparents in their own right, i.e., as heirs
in the inheritance brings back to the common next in degree, and not by right of
hereditary mass the property which they may representation if their parent repudiates the
have received from the testator so that a inheritance of the grandparent, as no living
division may be effected according to law and person can be represented except in cases of
the will of the testator. disinheritance and incapacity. In this case,
the grandchildren are not obliged to bring to
collation what their parent has received
In reducing inofficious donations, the last to gratuitously from their grandparent.
be donated should be the first to be reduced.
Extra-judicial – partition made by the (3) Even if a prohibition is imposed, the heirs
decedent himself by an act inter vivos or by by mutual agreement can still make the
will or by a third person entrusted by the partition.
decedent or by the heirs themselves. [Paras]
• Partition Inter Vivos: It is one that merely
allocates specific items or pieces of Effects of Inclusion of Intruder in Partition [Art.
property on the basis of the pro-indiviso 1108, CC]
shares fixed by law or given under the will (1) Between a true heir and several mistaken
to heirs or successors. [Art. 1080, CC] heirs – partition is void.
(2) Between several true heirs and a
Who May Effect Partition mistaken heir – transmission to mistaken
heir is void
(1) The Decedent, during his lifetime by an
act inter vivos or by will [Art.1080, CC] (1) Through error or mistake, share of true
heir is allotted to mistaken heir –
(2) The decedent’s heirs [Art.1083, CC] partition shall not be rescinded unless
(3) A competent court [Art. 1083,CC] there is bad faith or fraud on the part of
the other persons interested, but the
(4) A third person not an heir designated by latter shall be proportionately obliged to
the decedent [Art.1081, CC] pay the true heir of his share. The
partition with respect to the mistaken heir
Who Can Demand Partition is void. [Sempio-Dy]
(1) Compulsory heir
(2) Voluntary heir upon fulfillment of Right of Redemption in Partition
condition if any [Art. 1084, CC]
(3) Legatee or devisee Should any of the heirs sell his hereditary
(4) Any person who has acquired interest in rights to a stranger before the partition, any
the estate or all of the co-heirs may be subrogated to
the rights of the purchaser by reimbursing
him for the price of the sale, provided they do
When Partition Cannot Be Demanded so within the period of one month from the
(1) When expressly prohibited by the testator time they were notified in writing of the sale
for a period not exceeding 20 years [Art. by the vendor [Art. 1088, CC]
1083, CC]
Strangers – those who are not heirs on the
(2) When the co-heirs agreed that the estate succession.
shall not be divided for a period not
exceeding 10 years, renewable for Legal Redemption by Co-Heir; Requisites:
another 10 years [Art. 494, CC]
(a) That there are several heirs of the
(3) When prohibited by law common inheritance;
(4) When to partition the estate would render (b) That one of them sells his hereditary
it unserviceable for the use for which it is rights;
intended
(c) That the sale is made to a stranger, and
before the partition has been made;
Prohibition to Partition (d) That one or more of the co-heirs demand
(1) The prohibition to partition for a period the repurchase within a period of one
not exceeding 20 years can be imposed month, counted from the time he or they
even on the legitime. were notified in writing of the sale; and
(2) If the prohibition to the partition is for (e) That the buyer is reimbursed the price of
more than 20 years, the excess is void. the sale. [Garcia v. Calaliman]
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Note: The redemption can be exercised only If a credit should be assigned as collectible,
by a co-heir. the co-heirs shall not be liable for the
subsequent insolvency of the debtor of the
estate, but only for his insolvency at the time
E.2. EFFECTS OF PARTITION the partition is made. [Art. 1095, CC]
Effect
The warranty of the solvency of the debtor
A partition legally made confers upon each can only be enforced during the five years
heir the exclusive ownership of the property following the partition.
adjudicated to him [Art. 1091, CC]
Co-heirs do not warrant bad debts, if so
known to, and accepted by the distributee.
No partition shall be construed so as to
prejudice, defeat, or destroy the right or title But if such debts are not assigned to a co-heir,
of any person claiming the real estate and should be collected, in whole or in part,
involved in the action for partition by title the amount collected shall be distributed
under any other person, or by title paramount proportionately among the heirs. [Art. 1095,
to the title of the parties among whom the CC]
partition may have been made. [Rule 69, Sec.
12, ROC]
End of Warranty
The obligation of warranty among co-heirs
A judicial partition in probate proceedings shall cease in the following cases:
does not bind the heirs who were not parties
thereto. [Tolentino]
(1) The testator himself has made the
partition
Warranty • Unless it appears, or it may be
After the partition has been made, the co- reasonably presumed, that his intention
heirs shall be reciprocally bound to warrant was otherwise, but the legitime shall
the title to, and the quality of, each property always remain unimpaired.
adjudicated [Art. 1092, CC]
(2) When it has been so expressly stipulated
The reciprocal obligation of warranty shall be in the agreement of partition
proportionate to the respective hereditary • Unless there has been bad faith
shares of the co-heirs.
(3) When the eviction is due to a cause
If any one of them should be insolvent, the subsequent to the partition, or has been
other co-heirs shall be liable for his part in caused by the fault of the distributee of
the same proportion, deducting the part the property. [Art. 1096, CC]
corresponding to the one who should be
indemnified. E.3. RESCISSION AND NULLIFICATION OF
PARTITION
Those who pay for the insolvent heir shall
have a right of action against him for Causes for Rescission or Annulment
reimbursement, should his financial condition (1) A partition may be rescinded or annulled
improve [Art. 1093, CC] for the same causes as contracts. [Art.
1097, CC]
An action to enforce the warranty among the
co-heirs must be brought within ten years (2) A partition, judicial or extra-judicial, may
from the date the right of action accrues. [Art. also be rescinded on account of lesion,
1094, CC] when any one of the co-heirs received
things whose value is less by at least one-
CIVIL LAW
AGENCY
(1) With a disclosed principal, where, at the (1) The alleged principal should be aware of
time the transaction was contracted by the acts of the alleged agent
the agent, the other party thereto was
(2) The alleged principal has had reasonable
known:
opportunity under the circumstances to
a. that the agent was acting for a repudiate the acts of the alleged agent
principal; and
(3) A third party has transacted with the
b. the principal’s identity; alleged agent without being made aware
of the alleged agent’s lack of authority
(2) Partially disclosed, where the other party
knows or has reason to know that the (4) There were no facts or circumstances
agent is or may be acting for a principal which may raise any suspicion on the part
but is unaware of the principal’s identity; of the third person that the agent was not
authorized
(3) Undisclosed, where the party has no
notice of the fact that the agent is acting
as such for a principal
Where no third party was prejudiced, and it
was emphasized in no uncertain terms to the
alleged agent that no agency exists
B. AS TO MANNER OF CREATION (therefore both principal and agent knew that
Art. 1869. Agency may be express, or implied the agent had no authority) then Art 1869 has
from the acts of the principal, from his silence no room for operation. [Uniland Resources v.
or lack of action, or his failure to repudiate DBP, G.R. No. 95909 (1991)]
the agency, knowing that another person is
acting on his behalf without authority.
B.2.B ACTS OF THE AGENT
Agency may be oral, unless the law requires a
specific form. Acceptance of the agent may be implied from
(1) His acts which carry out the agency
B.1 EXPRESS AGENCY (2) His silence or inaction if the agent does
not inform the principal of his rejection of
An express agency is one where the agent has the agency relationship:
been actually authorized by the principal,
either: a. Within a reasonable amount of
time under the circumstances
(1) Orally; or
b. Prior to the principal suffering
(2) In writing[Art.1869]. damage as a result of the delay
on the part of the agent in
informing the principal of his
B.2 IMPLIED AGENCY rejection of the agency
Art. 1870. Acceptance by the agent may also relationship [Casis (2011)]
be express, or implied from his acts which
carry out the agency, or from his silence or
inaction according to the circumstances. Art. 1871. Between persons who are present,
the acceptance of the agency may also be
implied if the principal delivers his power of
B.2.A ACTS OF THE PRINCIPAL attorney to the agent and the latter receives it
without any objection.
The act of the principal which constitutes
consent may be in the form of silence, lack of
action, or failure to repudiate the agency
knowing that another person is acting on his
behalf without authority. [See Art 1869] Art. 1872. Between persons who are absent,
the acceptance of the agency cannot be
Requisites: implied from the silence of the agent, except:
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An agency couched in specific terms powers and duties are excluded. [BPI v. De
authorizes only the performance of specific Coster, G.R. No. L-23181 (1925)]
acts. Certain specific acts, however, require
special powers of attorney.
Article 1878. Special powers of attorney are
A special power of attorney is an instrument
necessary in the following cases:
in writing by which one person, as principal,
appoints another as his agent and confers (1) To make such payments as are not usually
upon him the authority to perform certain considered as acts of administration;
specified acts or kinds of acts on behalf of the
(2) To effect novations which put an end to
principal.
obligations already in existence at the time
the agency was constituted;
D.2.A EFFECT OF ABSENCE OF SPECIFIC (3) To compromise, to submit questions to
AUTHORITY arbitration, to renounce the right to appeal
from a judgment, to waive objections to the
IN GENERAL
venue of an action or to abandon a
If an agent performs a transaction under Art prescription already acquired;
1878 without specific authority therefor, the
(4) To waive any obligation gratuitously;
transaction is unenforceable. However, the
agent can still seek the principal’s ratification. (5) To enter into any contract by which the
[Dungo v. Lopena, G.R. No. L-18377 (1962)] ownership of an immovable is transmitted or
acquired either gratuitously or for a valuable
consideration;
SALE OF LAND OR ANY INTEREST THEREIN
(6) To make gifts, except customary ones for
Art. 1874. When a sale of a piece of land or charity or those made to employees in the
any interest therein is through an agent, the business managed by the agent;
authority of the latter shall be in writing;
(7) To loan or borrow money, unless the latter
otherwise, the sale shall be void.
act be urgent and indispensable for the
Requirements: preservation of the things which are under
administration;
The authorization must be
(8) To lease any real property to another
(1) Written, and
person for more than one year;
(2) Specific
(9) To bind the principal to render some
service without compensation;
Only specific authorization is required (and it (10) To bind the principal in a contract of
need not be written): partnership;
(1) If the contract is a sale of an immovable (11) To obligate the principal as a guarantor or
other than land surety;
(2) If the contract transmits ownership over (12) To create or convey real rights over
an immovable other than land immovable property;
(3) If the contract transmits ownership over (13) To accept or repudiate an inheritance;
land through a transaction other than a
(14) To ratify or recognize obligations
sale
contracted before the agency;
(15) Any other act of strict dominion.
EFFECT OF SPECIFIC AUTHORIZATION
Where an instrument specifies and defines
The requirement of special power of attorney
powers and duties, all such powers and
refers to the nature of the authorization, not
duties are limited and confined to those
to its form. Thus, even if a document is titled
which are specified and defined, and all other
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F. KINDS OF AGENTS
F.1 AS TO NATURE AND EXTENT OF
AUTHORITY
According to the nature and extent of their
authority, agents have been classified into:
(1) Universal agents are authorized to do all
acts for his principal which can lawfully
be delegated to an agent. So far as such
a condition is possible, such an agent
may be said to have universal authority.
(2) General agents are authorized to do all
acts pertaining to a business of a certain
kind or at a particular place, or all acts
pertaining to a business of a particular
class or series. He has usually authority
either expressly conferred in general
terms or in effect made general by the
usages, customs or nature of the business
which he is authorized to transact. An
agent, therefore, who is empowered to
transact all the business of his principal
of a particular kind or in a particular place,
would, for this reason, be ordinarily
deemed a general agent.
(3) Special agents are authorized to do some
particular act or to act upon some
particular occasion (i.e., acts usually in
accordance with specific instructions or
under limitations necessarily implied
from the nature of the act to be done)
[Siasat v. IAC (1985)].
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A. RIGHTS OF AGENTS
A.1.C. FORFEITURE OF RIGHT TO
COMMISSION
A.1. COMPENSATION
An agent who takes a secret profit without
Art. 1875. Agency is presumed to be for a revealing the same to his principal is guilty of
compensation, unless there is proof to the a breach of his loyalty to the principal and
contrary. forfeits his right to collect the commission
from his principal, even if the principal does
not suffer any injury, or he obtained better
The principal must prove that the agency is results, or the agency is gratuitous, or that
not for a fee if he contests it. But in itself, usage or custom allows it. The rule is to
compensation is not an element of an agency prevent the possibility of any wrong, not to
contract. remedy an actual damage. [Domingo v.
Domingo, G.R. No. L-30573 (1971)]
Agent Broker
A.2. LEND MONEY TO / BORROW MONEY
Commission is Commission is earned FROM THE AGENCY
received upon the by merely bringing Art. 1890. If the agent has been empowered
successful conclusion the buyer and seller to borrow money, he may himself be the
of the sale together lender at the current rate of interest. If he has
been authorized to lend money at interest, he
cannot borrow it without the consent of the
A.1.A PROCURING CAUSE principal.
A procuring cause starts a series of events,
which, without break in their continuity, result
in the accomplishment of the prime objective (1) Borrow Money From
of the employment of the broker – a sale. Conditions:
[Philippine Health Care Providers v. Estrada,
G.R. 171052 (2008)] (a) The agent is empowered to borrow
money
The agent is entitled to commission even if
the (transaction) is consummated after the (b) The agent must borrow at the current
revocation of his authority, if the revocation rate of interest
was done in bad faith by the principal to
avoid payment of commission. [Infante v.
Cunanan] (2) Lend Money To
Conditions:
A.1.B TEST (a) The agent is authorized to lend
money at interest
Even if the agent is not the procuring cause of
the transaction, he may still be awarded a (b) The principal consents to such
sum of money if he is “somehow instrumental arrangement.
in bringing the parties together again and
finally consummating the transaction.” [Prats
v. CA] A.3. APPOINT A SUBSTITUTE
Art. 1892. The agent may appoint a substitute
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if the principal has not prohibited him from (a) The principal is aware that a
doing so; but he shall be responsible for the substitute is acting on his behalf
acts of the substitute: without authority yet he fails to
repudiate the substitute’s acts. There
(1) When he was not given the power to
may be implied agency.
appoint one
(b) The principal gives the agent the
(2) When he was given such power, but
power to appoint a substitute.
without designating the person, and the
person appointed was notoriously
incompetent or insolvent.
• The Substitute is an Alternate, not a
All acts of the substitute appointed against Delegate
the prohibition of the principal shall be void.
An agent cannot delegate to another the
same agency. Potestas delegate non delegare
potest. Re-delegation is detrimental to the
Art. 1893. In the cases mentioned in Nos.1 and
principal as the second agent has no privity of
2 of the preceding article, the principal may
contract with the principal... Article 1892
furthermore bring an action against the
allows the agent to appoint a substitute (not
substitute with respect to the obligations
a delegate). [Baltazar v. Ombudsman, G.R.
which the latter has contracted under the
No. 136433 (2006)]
substitution.
• When the agent advances funds for the acts do not apply if a SPOA is required. [c.f.
execution of the agency, or Woodchild v. Roxas]
• When the agent has suffered injury
caused by the execution of the agency Collateral Acts
(The agent has the implied authority) to do
B. OBLIGATIONS OF AGENTS all of the collateral acts which are the natural
and ordinary incidents of the main act or
B.1. IN GENERAL business authorized. [Guinhawa v. People,
B.1.A ACT WITHIN SCOPE OF AUTHORITY G.R. No. 162822 (2005)]
Art. 1881. The agent must act within the scope
of his authority. He may do such acts as may (2) With Respect to Third Persons
be conducive to the accomplishment of the
purpose of the agency.
Art. 1900. So far as third persons are
concerned, an act is deemed to have been
(1) In General performed within the scope of the agent's
An agent can bind his principal if he acts authority, if such act is within the terms of the
within the scope of authority granted to him. power of attorney, as written, even if the
agent has in fact exceeded the limits of his
Powers of attorney are generally construed authority according to an understanding
strictly. The general rule is that the power of between the principal and the agent.
attorney must be pursued within legal
strictures, and the agent can neither go
beyond it; nor beside it. The act done must be The Situation: the principal provided
legally identical with that authorized to be limitations to the authority of the agent orally
done. [Woodchild v. Roxas, G.R. No. 140667 or through a document other than the written
(2004)] power of attorney.
General Rule: The third person can rely
Conducive Acts completely on the written power of attorney
to determine whether the agent’s act is within
Acts “conducive to the accomplishment of the limits of his authority.
the purpose of the agency” are deemed to be
within the agent’s authority. Exception: If the third person is aware of the
secret understanding between the principal
and the agent.
Advantageous Acts
Art. 1882. The limits of the agent's authority (3) Authority of Corporate Officers
shall not be considered exceeded should it
have been performed in a manner more The general principles of agency govern the
advantageous to the principal than that relation between the corporation and its
specified by him. officers or agents, subject to the articles of
incorporation, bylaws, or relevant provisions
of law. [San Juan v. CA, G.R. No. 129459
The agent may do acts more advantageous to (1998)]
the principal than what is indicated in the A corporate officer entrusted with the general
power of attorney. But the principal may later management and control of its business, has
contest whether such act is indeed implied authority to make any contract or do
advantageous to him. any other act which is necessary or
However, if a special power of attorney is appropriate to the conduct of the ordinary
required for the transaction, then the agent business of the corporation. As such officer,
must obtain it. Advantageous and conducive he may, without any special authority from
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the Board of Directors, perform all acts of an Art. 1885. In case a person declines an
ordinary nature, which by usage or necessity agency, he is bound to observe the diligence
are incident to his office... of a good father of a family in the custody and
Where similar acts have been approved by preservation of the goods forwarded to him
the directors as a matter of general practice, by the owner until the latter should appoint
custom and policy, the general manager may an agent or take charge of the goods.
bind the company without formal
authorization of the board of directors. [Board
of Liquidators v. Kalaw, G.R. No. L-18805 Art. 1899. If a duly authorized agent acts in
(1967)] accordance with the orders of the principal,
the latter cannot set up the ignorance of the
agent as to circumstances whereof he himself
B.1.B ACT IN ACCORDANCE WITH was, or ought to have been, aware.
INSTRUCTIONS
Art. 1887. In the execution of the agency, the B.1.C CARRY OUT THE AGENCY
agent shall act in accordance with the
instructions of the principal. (1) In General
In default thereof, he shall do all that a good Art. 1884 par. 1 The agent is bound by his
father of a family would do, as required by the acceptance to carry out the agency, and is
nature of the business. liable for the damages which, through his
non-performance, the principal may suffer.
result in loss or damage to the principal. opposition to that of his principal or cestui
que trust. [Severino v. Severino, G.R. No. L-
18058 (1923)]
B.1.D ADVANCE FUNDS
Art. 1886. Should there be a stipulation that (3) Double Sales
the agent shall advance the necessary funds,
he shall be bound to do so except when the Art. 1916. When two persons contract with
principal is insolvent. regard to the same thing, one of them with
the agent and the other with the principal,
and the two contracts are incompatible with
Conditions: each other, that of prior date shall be
preferred, without prejudice to the provisions
• There is a stipulation stating that the of article 1544.
agent shall advance the necessary funds,
and
• The principal must be solvent Art. 1917. In the case referred to in the
preceding article, if the agent has acted in
good faith, the principal shall be liable in
B.1.E PREFER THE PRINCIPAL’S INTEREST damages to the third person whose contract
OVER HIS OWN must be rejected. If the agent acted in bad
faith, he alone shall be responsible.
(1) In General
Art. 1889. The agent shall be liable for
damages if, there being a conflict between Art. 1544. If the same thing should have been
his interests and those of the principal, he sold to different vendees, the ownership shall
should prefer his own. be transferred to the person who may have
first taken possession thereof in good faith, if
it should be movable property.
Note: Agency is a fiduciary relationship. A Should it be immovable property, the
breach of that relationship will expose the ownership shall belong to the person
agent to liability for damages. acquiring it who in good faith first recorded it
in the Registry of Property.
(2) Over Property Being Administered Should there be no inscription, the ownership
shall pertain to the person who in good faith
Art. 1491. The following persons cannot was first in the possession; and, in the
acquire by purchase, even at a public or absence thereof, to the person who presents
judicial auction, either in person or through the oldest title, provided there is good faith.
the mediation of another:
(2) Agents, the property whose
administration or sale may have been The Situation: the principal and the agent
intrusted to them, unless the consent of the each contracts with different people for the
principal has been given; same thing, and the contracts are
incompatible.
General Rule [Art. 1544]:
The relations of an agent to his principal are
fiduciary and it is an elementary and very old • The property is a movable, then the
rule that in regard to property forming the person who takes first possession in good
subject matter of the agency, he is estopped faith (PGF) prevails
from acquiring or asserting a titled adverse to
• The property is immovable, then the
that of the principal. His position is analogous
person who first records it in good faith in
to that of a trustee and he cannot
the register of deeds prevails. If there is
consistently, with the principles of good faith,
no record, the PGF prevails. If there is no
be allowed to create in himself an interest in
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PGF, then the person who has the oldest Applicability: The agent may only borrow
title. (record > PGF > title) funds from the agent if he has been
authorized to lend money at interest [Art
Exceptions: the contract “of a prior date”
1890]. If he does borrow, then he should pay
shall prevail if:
interest for the amount he borrowed.
(a) None of the buyers had obtained
possession over the movable, or
B.1.H LIABILITY FOR FRAUD/NEGLIGENCE
(b) None of the buyers had recorded,
possessed or has title over the Art. 1909. The agent is responsible not only
immovable for fraud, but also for negligence, which shall
Liability be judged with more or less rigor by the
courts, according to whether the agency was
(a) If the Agent was in good faith, then the or was not for a compensation.
principal is liable for damages to the third
person whose contract won’t be honored
(b) If the Agent was in bad faith, then he is The article has been applied against an agent
liable for damages to the third person for negligence which caused damage against
and to the principal [see Art 1889] itself, thereby preventing it from recovering
from the principal what it lost. [Metrobank v.
CA, G.R. No. 88166 (1991)]
B.1.F RENDER ACCOUNT/DELIVER
Art. 1891. Every agent is bound to render an B.2 FACTOR OR COMMISSION AGENT
account of his transactions and to deliver to
the principal whatever he may have received A factor or commission agent is one whose
by virtue of the agency, even though it may business is to receive and sell goods for a
not be owing to the principal. commission (also called factorage) and who
is entrusted by the principal with the
Every stipulation exempting the agent from possession of goods to be sold, and usually
the obligation to render an account shall be selling in his own name. He may act in his
void. own name or in that of the principal.
An ordinary agent need not have possession
of the goods of the principal, while the
If an agent receives a secret gift from a client,
commission agent must be in possession [De
he must report it and deliver it to the
Leon (2010)].
principal.
The law imposes upon the agent the absolute
obligation to make a full disclosure or Ordinary Agent Commission Agent
complete account to his principal of all his
transactions and other material facts relevant Acts for and in behalf Private rule of
to the agency. If he makes a secret profit, he of the principal guidance to the agent
is guilty of breach of his loyalty, and he
forfeits his right to his commission. [Domingo Need not have Refers to the manner
v. Domingo, G.R. No. L-30573 (1971)] possession of the or mode of agent’s
goods action with respect to
matters within the
B.1.G PAY INTEREST permitted scope of
authority
Art. 1896. The agent owes interest on the
sums he has applied to his own use from the
day on which he did so, and on those which
he still owes after the extinguishment of the Broker Commission Agent
agency.
Has no custody of the Has custody or
thing to be disposed possession of the
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UP LAW BOC AGENCY CIVIL LAW
of, only acts as things to be sold with a statement of the names of the buyers.
intermediary between Should he fail to inform the principal, the sale
seller and buyer is deemed to have been made for cash as far
as the principal is concerned [Art. 1906].
Maintains no relations Maintains relations
The commission agent is obliged to collect
with things to be with the thing, the
the credits of his principal when they become
sold/bought buyer and the seller
due and demandable [Art. 1908].
General rule: Failing to so collect, the agent
B.2.A RESPONSIBILITY FOR GOODS shall be liable for damages.
RECEIVED Exception: He is not liable if he proves that he
(1) The commission agent shall be exercised due diligence for that purpose.
responsible for goods received by him in the Should the commission agent receive a
terms and conditions and as described in the guarantee commission (del credere
consignment, unless upon receiving them he commission) on a sale, in addition to the
should make a written statement of the ordinary commission, he shall:
damage and deterioration suffered by the
same [Art. 1903]. (1) Bear the risk of collection; and
(2) The commission agent who handles (2) Pay the principal the proceeds of the sale
goods of the same kind and mark, which on the terms agreed upon with the purchaser
belong to different owners, shall: [Art. 1907].
(a) Distinguish them by countermarks
and C. LIABILITY OF AGENTS
(b) Designate the merchandise C.1. WHEN SOLIDARY
respectively belonging to each
principal [Art. 1904]. Art. 1894. The responsibility of two or more
agents, even though they have been
appointed simultaneously, is not solidary, if
B.2.B. SALE OF GOODS ON CREDIT solidarity has not been expressly stipulated.
WITHOUT AUTHORITY
General rule: The commission agent cannot (1) General Rule: Two or more agents are
sell on credit. Should he do so, the principal jointly liable.
may:
(2) Each of the agents can be held solidarily
(1) Demand from him payment in cash, in liable for the non-fulfilment of the agency
which case the commission agent shall be or for injuries caused by fault or
entitled to any interest or benefit, which may negligence if:
result from such sale [Art. 1905]; or
• The principal simultaneously appoints
(2) Ratify the sale on credit, in which case the
more than one agent, and
principal will have all the risks and
advantages to him [De Leon (2010)]. • There is an express stipulation that such
Exception: The commission agent can sell on agents are solidarily liable
credit with the express or implied consent of (3) An agent will not be solidarily liable if the
the principal. fellow agents acted beyond the scope of
authority.
General Rule: the agent who transacts as an Exception: When the contract involves things
agent is not personally liable to the third belonging to the principal. The principal may
person for the obligation entered into seek damages for such contract.
Exceptions: The exception under Art 1883 “does not say
that (a third party) does not have, and cannot
(1) When the agent expressly binds himself
bring an action against the agent also.”
(2) When the agent exceeds the limits of his [Beaumont v. Prieto, G.R. No. L-8988 (1916)]
authority without giving the person he is
transacting with sufficient notice of his
powers [Art 1897]
• When all of the following are present:
(a) The person transacting with the
agent is aware of the limits of the
agent’s authority
(b) The agent exceeded the scope of his
authority
(c) The agent exceeded his or her
authority, and
(d) The principal did not ratify the
contract
Note: In (c), the transaction will be considered
void.
expenses incurred by the agent in the latter, without fault or negligence on his part.
following cases:
• If the agent acted in contravention of the General Rule: The principal must indemnify
principal's instructions, unless the latter the agent for damages in the execution of the
should wish to avail himself of the agency.
benefits derived from the contract;
Exception: When damage was caused due to
• When the expenses were due to the fault the fault or negligence of the agent.
of the agent;
• When the agent incurred them with
knowledge that an unfavorable result A.4. COMPENSATE THE AGENT
would ensue, if the principal was not Art. 1875. Agency is presumed to be for a
aware thereof; compensation, unless there is proof to the
• When it was stipulated that the expenses contrary.
would be borne by the agent, or that the
latter would be allowed only a certain
sum. Steps to determine whether the agent is
entitled to compensation:
• Determine whether the person is an
General Rule: the principal must advance or agent or a broker
reimburse (with interest) the sums necessary
to execute the agency. • If he is an agent, determine whether he is
the procuring cause, i.e. if there is a close,
Exceptions: proximate and causal relation between
• Expenses incurred through acts which the agent’s efforts and the sale
contravene the principal’s instructions,
and the principal does not want to derive
benefit therefrom B. LIABILITY OF THE PRINCIPAL
• Expenses due to the fault of the agent
• Expenses incurred by the agent with the B.1. IN GENERAL
knowledge that an unfavorable result The principal is bound and liable for the acts
would ensue, and the principal was of the agent done within the scope of his
unaware authority (express, conducive, advantageous,
• If there is a stipulation that expenses and collateral acts), for unauthorized acts
would be borne by the agent or that he which the principal has ratified and for acts
which is estopped from denying.
would be allowed only a certain sum
• Expenses incurred from acts outside the
authority of the agent. B.2. BE SOLIDARILY LIABLE
Sums to be reimbursed include those from Art. 1911. Even when the agent has exceeded
unsuccessful undertakings as well as those his authority, the principal is solidarily liable
initially in contravention of the principal’s with the agent if the former allowed the latter
instructions but later becomes a source of to act as though he had full powers.
benefits.
Requisites:
A.3. INDEMNIFY THE AGENT FOR INJURY
• Agency relationship exists
Art. 1913. The principal must also indemnify
the agent for all the damages which the • The agent acts in excess of his authority.
execution of the agency may have caused the
• The principal allowed the agent to act as • Principal and third persons now have a
though he had full powers. right of action against each other. [Syjuco
v. Syjuco, G.R. No. 13471 (1920)]
Art. 1915. If two or more persons have • The principal is not bound by the contract
appointed an agent for a common if the act is beyond the scope of the
transaction or undertaking, they shall be agent’s authority. [PNB v. Agudelo, G.R.
solidarily liable to the agent for all the No. L-39037 (1933)] This operates as an
consequences of the agency. exception to the exception.
E. DISSOLUTION / ACCOMPLISHMENT
D.1. IN GENERAL / EXPIRATION
By reason of the very nature of the Art. 1919. Agency is extinguished:
relationship between the principal and agent, xxx
agency is extinguished by the death of the
principal or the agent. Any act of an agent (4) By the dissolution of the firm or
after the death of his principal is void ab initio corporation which entrusted or accepted the
unless the same falls under the exceptions agency;
provided for in the aforementioned Articles (5) By the accomplishment of the object or
1930 and 1931. purpose of the agency;
(6) By the expiration of the period for which
D.2. EXCEPTIONS the agency was constituted.
CIVIL LAW
PARTNERSHIP
Article 1768. The partnership has a juridical A universal partnership may refer to:
personality separate and distinct from that of (1) All present property :
each of the partners, even in case of failure to
comply with the requirements of article 1772, • The partners contribute all the property
first paragraph. which belongs to them to a common fund,
with the intention of dividing the same
among themselves, as well as the profits
C. PARTIES they may acquire therewith [Article 1778].
General Rule: Any person capacitated to • The property contributed includes all
contract may enter into a contract of those belonging to the partners at the
partnership. time of the constitution of the partnership.
The following persons CANNOT enter into a • A stipulation for the common enjoyment
contract of partnership: of any other profits may also be made.
• Those suffering from civil interdiction; However, the property which the partners
may acquire subsequently by inheritance,
• Minors; legacy or donation cannot be included in
such stipulation, except the fruits thereof
• Insane or demented persons; [Article 1779].
• Deaf-mutes who do not know how to (2) All the profits:
write;
(a) It comprises all that the partners may
• Incompetents who are under acquire by their industry or work
guardianship. during the existence of the
partnership.
Exceptions : The capacity of the following (b) Only the usufruct over the property of
persons to enter into a contract of the partners passes to the
partnership, though capacitated to contract partnership [Article 1780].
generally, are limited:
• Those who are prohibited from giving When the articles of universal partnership do
each other any donation or advantage not specify its nature (all present property or
cannot enter into a universal partnership all the profits), the partnership will be
[Article 1782]; considered as one only of all the profits
• A corporation cannot enter into a [Article 1781].
partnership in the absence of express
authorization by statute or charter.
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F. DURATION
D.3. EFFECT OF UNLAWFUL OBJECT
F.1. COMMENCEMENT
If the partnership has an unlawful object or
purpose: Art 1784. A partnership begins from the
moment of the execution of the contract,
(1) The contract is void ab initio [Article unless otherwise stipulated
1409(1)].
(2) Once dissolved by judicial decree:
F.2. TERM
(a) The profits shall be confiscated by
favor of the State; As to period, a partnership may either be:
(b) The instruments or tools and For a fixed term or particular undertaking; or
proceeds of the crime shall also be At will, the formation and dissolution of
forfeited in favor of the State [Article which depend on the mutual desire and
1770]. consent of the parties. Any one of the
(3) The contributions of partners shall not be partners may, at his sole pleasure, dictate the
confiscated unless they are instruments dissolution of the partnership, even in bad
or tools of the crime [De Leon (2010)]. faith, subject to liability for damages [Ortega
v. CA, G,R, No. 109248 (1995)].
F.3. EXTENSION
E. FORM
A partnership term may be extended by:
General rule: The contract may be constituted
in any form [Article 1771]. (1) Express renewal; or
Taxable as in a corporation
Partnership Co-ownership
Created by Created by operation of
Generally created Generally created by agreement law
by either express or law and may exist
implied contract even without a Involves at least Except for corporation
contract two persons sole, requires at least 5
incorporators
Has a separate Has no separate
juridical personality juridical personality Personality Personality
commences from commences from the
Generally, the The purpose is the the moment of issuance of certificate
purpose is to obtain common enjoyment of execution of the of incorporation
profits a thing or right contract
Duration has no An agreement to keep Can exercise any Can exercise only
limitation a thing undivided for power authorized powers conferred by
more than ten years is by partners the Corporation Code or
not allowed, but may by its articles of
be extended incorporation, and such
as are necessary or
There is mutual There is no mutual incidental to the
agency between representation among exercise of such powers
partners co-owners
When Management is vested
Commencement Commencement is on
date may be the date of the
stipulated celebration of the
marriage and any
stipulation to the
contrary is void
(1) To contribute, at the beginning of the • There is no agreement that even in case
partnership or at the stipulated time, the of imminent loss of the business, the
money, property or industry which he partners are not obliged to contribute.
undertook to contribute;
(2) In case a specific and determinate thing is
to be contributed:
Any partner who refuses to contribute an
• To warrant against eviction in the same additional share to the capital, except an
manner as a vendor; and
industrial partner, to save the venture, shall
(a) To deliver to the partnership the fruits be obliged to sell his interest to the other
of the property promised to be partners, unless there is an agreement to the
contributed, from the time they contrary [Art. 1791].
should have been delivered, without
need of demand [Art. 1786];
CONTRIBUTION OF INDUSTRY
(3) In case a sum of money is to be
contributed, or in case he took any An industrial partner is obliged to contribute
amount from the partnership coffers, to his industry at the stipulated time.
indemnify the partnership for:
(a) Interest; and General rule: An industrial partner cannot
(b) Damages from the time he should engage in business for himself. Should he do
have complied with his obligation, or so, the capitalist partners, as well as
from the time he converted the industrial partners [De Leon (2010)] may
amount to his own use, respectively either:
[Art. 1788]. • Exclude him from the firm; or
(2) Avail themselves of the benefit which he
AMOUNT OF CONTRIBUTION may have obtained.
General rule: Partners are to contribute equal Exception: He may engage in business for
shares to the capital of the partnership. himself when the partnership expressly
permits him to do so [Art. 1789].
(3) If, without his consent, a partner has (4) Other factors may be considered to
derived profits from any transaction determine ownership of the property.
connected with the formation, conduct, or
liquidation of the partnership or from any use
of partnership property;
RIGHTS IN SPECIFIC PROPERTY
(4) Whenever other circumstances render it (1) The partners have equal rights to possess
just and reasonable [Art. 1809].
partnership property for partnership
purposes.
(2) For other purposes, the consent of his
D. PROPERTY RIGHTS OF PARTNERS partners is necessary.
IN GENERAL (3) If the partner is excluded, he may ask for:
The property rights of a partner are:
(a) Formal accounting [Art.1809]; or
(1) Rights in specific partnership property;
(b) Dissolution by judicial decree
(2) Interest in the partnership; and [Art.1831].
(3) Right to participate in the management (4) A partner’s right in such property is not
[Art. 1810]. assignable, except when all the partners
assign their rights in the same property;
PROPERTY AND CAPITAL DISTINGUISHED (5) The right is not subject to attachment or
execution, except on claim against the
Partnership capital Partnership property partnership. In case of such attachment, the
partners, or any of them, or the
With constant Value varies with representatives of a deceased partner, cannot
value market conditions claim any right under the homestead or
exemption laws.
Includes only Includes the
actually contributions and (6) The right is not subject to legal support
contributed and property acquired by under Article 291 [Art. 1811].
promised capital the partnership
INTEREST IN PARTNERSHIP
OWNERSHIP OF CERTAIN PROPERTIES A partner’s interest in the partnership is his
(1) The ownership of property used by the share of the profits and surplus [Art. 1812].
partnership depends on the intention of the
parties, which may be drawn from an express
agreement or their conduct. ASSIGNMENT OF INTEREST
• A partner may allow the property to be Assignment by a partner of his whole interest
used by the partnership without transfer in the partnership, of itself:
of ownership, contributing only the use or (1) Does not dissolve the partnership; or
enjoyment thereof.
(2) Does not entitle the assignee to:
• He may also hold title to partnership
property, without acquiring ownership (a) Interfere in the management or
thereof [Art. 1819]. administration of the partnership business or
affairs;
(2) Property acquired by a partner with
partnership funds is presumed to be (b) Require information or account of
partnership property.
partnership; or
(3) The same presumption also arises when (c) Inspect the partnership books.
the property is indicated in the partnership
books as partnership asset.
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(2) There is no specification of their
evidence against the partnership [Art. 1820].
respective
duties; and
(3) There is no stipulation that one of them
(3) Notice to any partner of any matter
shall not act without the consent of all the relating to partnership affairs is notice to the
others.
partnership [Art. 1821].
(4) Wrongful act or omission of any partner
acting for partnership affairs makes the
STIPULATION OF UNANIMITY
partnership liable [Art. 1822].
Art. 1802. In case there is a stipulation that
(5) Partnership is bound to make good losses
none of the managing partners shall act
without the consent of others, the
for wrongful acts or misapplications of
concurrence of all is necessary for the validity partners [Art. 1823].
of the acts, and the absence or disability of
one cannot be alleged, unless there is
imminent danger of grave or irreparable F. RIGHT TO PROFITS AND
injury to the partnership. OBLIGATIONS FOR LOSSES
RULES FOR DISTRIBUTION OF PROFITS AND
LOSSES
MANAGEMENT WHEN MANNER NOT
AGREED UPON The distribution of profits and losses shall be
in accordance with the following rules:
When there is no agreement as to the manner
of management, the following rules apply: (1) They shall be distributed in conformity
with the agreement.
(1) All the partners are considered agents
(mutual agency). Whatever any one does (2) If only the share in profits has been
alone binds the partnership, unless there is a stipulated, the share in the losses shall be in
timely opposition to the act, under Article the same proportion.
1801.
(3) In the absence of any stipulation:
(2) Any important alteration in the
immovable property of the partnership, even (a) The share in the profits of the
if useful to the partnership, requires capitalist
partners shall be in
unanimity. If the alteration is necessary for proportion to their
contributions.
the preservation of the property, however,
(b) The losses shall be borne by the
consent of the others is not required [De Leon
capitalist partners, also in
(2010)].
proportion to
the contributions.
If the refusal is manifestly prejudicial to the
partnership, court intervention may be (c) The share of the industrial
sought [Art. 1803]. partners in
the profits is that
share as may be just and
equitable. If he also contributed
MUTUAL AGENCY capital, he will receive a share of
the profits in proportion to his
In addition to the Article 1801, there is contribution; and
effectively a mutual agency in the following
cases: (d) The industrial partner, who did
not contribute capital, is not
(1) Partners can dispose of partnership
property even when in partnership name [Art. liable for losses [Art. 1797].
1819].
(2) An admission or representation made by
EXCLUSION OF PARTNER FROM SHARE
any partner concerning partnership affairs is
(b) Misapplied by any partner while it (2) No partnership liability results, he is liable
is in the custody of the partnership [Art. 1823]. pro rata with the other persons, if any, so
consenting to the contract or representation.
LIABILITY OF THE OTHER PARTNERS UNDER (3) When there are no such other persons, he
ART. 1822 AND 1823 is separately liable [Art. 1825, par. 1].
All partners are solidarily liable with the
partnership for its liabilities under Articles EFFECT ON EXISTING PARTNERSHIP OR
1822 and 1823 [Art. 1824]. OTHER PERSONS NOT ACTUAL PARTNERS
This is without prejudice to the guilty partner (1) When a person has been represented to
being liable to the other partners. However, be a partner (a) in an existing partnership, or
as far as third persons are concerned, the (b) with one or more persons not actual
partnership is answerable [De Leon (2010)]. partners, he is an agent of the persons
consenting to such representation to bind
them to the same extent and in the same
LIABILITY IN CASE OF PARTNERSHIP BY manner as though he were a partner in fact,
ESTOPPEL with respect to persons who rely upon the
PARTNER BY ESTOPPEL representation.
A partner by estoppel is a person who, by (2) When all the members of the existing
words spoken or written or by conduct (1) partnership consent to the representation, a
represents himself as a partner or (2) partnership act or obligation results.
consents to another representing him to
anyone as a partner: (3) In all other cases, it is the joint act or
obligation of the person acting and the
(1) In an existing partnership; or persons consenting to the representation [Art.
(2) With one or more persons not actual 1825, par. 2].
partners [Art. 1825, par. 1].
NATURE OF LIABILITY
LIABILITY OF A PARTNER BY ESTOPPEL Summarizing Article 1825, a partner by
PERSONAL REPRESENTATION estoppel is liable in the following manner:
A partner by estoppel is liable to any such (1) He is liable as though he were a partner
persons:
(1) To whom such representation when:
has been made; and
(2) Who has, on the (a) There is an existing partnership;
faith of such representation, given credit to
the actual or apparent partnership [Art. 1825, (b) All the partners consented to the
par. 1].
representation; and
(c) A partnership liability results.
PUBLIC REPRESENTATION (2) He is liable jointly and pro rata (as though
he were a partner in fact) with those who
If he has made such representation or
consented to the representation when:
consented to its being made in a public
manner, whether the representation has or (a) There is an existing partnership
has not been (personally) made or but not
all the partners consented; or
communicated to such persons so giving
credit by or with his knowledge, and: (b) There is no existing partnership
and all those represented as partners
(1) Partnership liability results, he is liable as consented to the representation.
though he were an actual member of the
partnership. (3) He is liable separately when:
(2) Knowledge of the partner acting in the
2) By the express will of any partner, who
must act in good faith, when no definite
particular matter acquired while a partner;
term or particular is specified.
(3) Knowledge of the partner acting in the 3) By the express will of all the partners who
particular matter then present to his mind;
have not assigned their interests or
or (4) Knowledge of any other partner who
suffered them to be charged for their
reasonably could and should have separate debts, either before or after the
communicated it to the acting partner.
termination of any specified term or
particular undertaking;
4) By the expulsion of any partner from the
These do not apply in case of fraud on the
business bona fide in accordance with
partnership committed by or with the consent
such a power conferred by the agreement
of the partner [Art. 1821].
between the partners [Article 1830(1)].
3) Or, where the partner has no authority to 3. The person or partnership continuing the
wind up partnership affairs, except by a business.
transaction with one who:
a) Had extended credit to the
Such agreement may be inferred from the
partnership prior to dissolution and
course of dealing between the creditor having
had no knowledge or notice of his
knowledge of the dissolution and the person
want of authority; or
or partnership continuing the business.
b) Had not extended credit to the
partnership prior to dissolution, and,
having no knowledge or notice of his In case of dissolution by death, the individual
want of authority, the fact of his want property of a deceased partner is liable for
of authority has not been advertised obligations of the partnership incurred while
[Article 1834]. he was a partner, after payment of his
separate debts [Article 1835].
Where a partner has become insolvent or his and business is continued with the
estate is insolvent, the claims against his consent of the retired partner or the
separate property shall rank in the following representative of the deceased
order: partner, without assignment of their
rights to partnership property.
1) Those owing to separate creditors;
3. When the cause of dissolution is the
2) Those owing to partnership creditors;
assignment by all the partners or
3) Those owing to partners by way of their representatives of their rights in
contribution [Article 1839(9)]. partnership property to one or more
third persons who promise to pay the
debts and who continue the business
H. RIGHTS OF CREDITORS OF of the partnership [Article 1840, 1st
DISSOLVED PARTNERSHIP par.].
H.1. AS CREDITORS OF THE NEW
PARTNERSHIP H.2. LIABILITY OF A NEW PARTNER
In the following cases, creditors of the The liability to the creditors of the dissolved
dissolved partnership are also creditors of the partnership of a new partner in the
person or partnership continuing the partnership continuing the business shall be
business: satisfied out of the partnership property
1. When the business is continued alone. However, he may, through agreement,
without liquidation, and the cause of assume individual liability [Article 1840, 2nd
dissolution is: par.].
a. Admission of a new partner
into the existing partnership; H.3. PRIORITY OF CREDITORS OF
b. Retirement or death of any DISSOLVED PARTNERSHIP
partner, and his rights to Creditors of the dissolved partnership have
partnership property are prior right to any claim of the retired partner
assigned to [1] two or more of or the representative of the deceased partner
the partners, or [2] one or against the person or partnership continuing
more of the partners and one the business [Article 1840, 3rd par.].
or more third persons;
This is without prejudice to the right of
c. Retirement of all but one creditors to set aside any assignment on the
partner, and their rights to ground of fraud [Article 1840, 4th par.].
partnership property are
assigned to the remaining
partner, who continues the I. RIGHTS OF A RETIRED PARTNER OR
business, either alone or with
A REPRESENTATIVE OF DECEASED
others;
PARTNER
d. Wrongful dissolution by any
partner, and the remaining Unless otherwise agreed upon, when any
partners continue the partner retires or dies, and the business is
business, either alone or with continued without any settlement of accounts
others; as between him or his estate and the person
or partnership continuing the business, he or
e. Expulsion of a partner, and his legal representative, as against such
the remaining partners person or partnership, subject to the prior
continue the business, either rights of creditors of the dissolved
alone or with others. partnership:
2. When the cause of dissolution is the
retirement or death of any partner,
Extent of liability
D. GENERAL AND LIMITED
Personally, but Liable only to the PARTNERSHIP DISTINGUISHED
subsidiarily, liable extent of his capital
General Limited
for obligations of contributions
the partnership partnership partnership
Cash, property or Cash or property only, Only general One or more general,
industry not industry partners and one or more limited
partners
Proper party in proceedings by or against
partnership Firm name
Proper party Not proper party, Must contain the Must include the word
unless [1] he is word “Company” “Limited” [SEC Memo.
also a general partner; [SEC Memo Circ Circ. No. 14-00]
or [2] where the object No. 14-00], except
of the proceedings is for professional
to enforce his right partnerships Must not include name
against or liability to of limited partners,
the partnership unless: [1] it is also the
May or may not surname of a general
Firm name include the name partner, or [2] prior to
of one or more of the time when the
Name may appear Name must not appear the partners limited partner became
in the firm name in the firm name such, the business has
been carried on under a
Prohibition to engage in other business name in which his
surname appeared
Prohibited [subject Not prohibited
to qualifications] Rules governing dissolution
Effect of retirement, death, insanity or Articles1828-1842 Articles 1860-1863
insolvency
Exceptions:
E.5. GENERAL AND LIMITED PARTNER AT
1. It is also the surname of a general THE SAME TIME
partner; or
A person may be a general and a limited
2. Prior to the time when the limited partner in the same partnership at the same
partner became such, the business time. This fact must be stated in the
had been carried on under a name in certificate.
which his surname appeared.
A person who is a general, and also at the
same time a limited partner, shall have all
A limited partner whose surname appears in the rights and powers, and be subject to all
a partnership name contrary to this the restrictions of a general partner, except
prohibition is liable as a general partner to that, in respect to his contribution as a
partnership creditors who extend credit limited partner, he shall have the rights
without actual knowledge that he is not a against the other members which he would
general partner. have had if he were not also a general partner
[Article 1853].
F. MANAGEMENT
Only general partners have the right to A limited partner is liable to the partnership:
manage the partnership. If a limited partner 1) For the difference between his actual
takes part in the control of the business, he contribution and that stated in the
becomes liable as a general partner [Article certificate as having been made; and
1848].
2) For any unpaid contribution which he
A general partner shall have the rights and agreed in the certificate to make in
powers and be subject to all restrictions and the future at the time and on the
liabilities of a partner in a partnership without conditions stated in the certificate
limited partners. Thus, he has general [Article 1858, 1st par.].
authority over the business.
However, written consent or ratification by all
limited partners is necessary to authorize the He holds as trustee for the partnership:
general partners to: 1) Specific property stated in the
1. Do any act in contravention of the certificate as contributed by him, but
certificate; which was not contributed or which
has been wrongfully returned; and
2. Do any act which would make it
impossible to carry on the ordinary 2) Money or other property wrongfully
business of the partnership; paid or conveyed to him on account of
his contribution [Article 1858, 2nd
3. Confess a judgment against the par.].
partnership;
4. Possess partnership property, or
assign their rights in specific property, These liabilities can be waived or
for other than a partnership purpose; compromised only by the consent of all
members. Such waiver or compromise,
5. Admit a person as a general partner; however, shall not affect the right to enforce
6. Admit a person as a limited partner, said liabilities of a creditor:
unless the right to do so is given in 1) Who extended credit; or
the certificate;
2) Whose claim arose, after the filing or
7. Continue the business with before a cancellation or amendment
partnership property on the death, of the certificate, to enforce such
retirement, insanity, civil interdiction liabilities [Article 1858, 3rd par.].
or insolvency of a general partner,
unless the right so to do is given in
the certificate Even after a limited partner has rightfully
received the return in whole or in part of his
capital contribution, he is still liable to the
G. OBLIGATIONS OF A LIMITED partnership for any sum, not in excess of such
PARTNER return with interest, necessary to discharge
G.1. OBLIGATIONS RELATED TO its liabilities to all creditors:
CONTRIBUTION 1) Who extended credit; or
The contributions of a limited partner may be 2) Whose claims arose before such
cash or other property, but not services return [Article 1858, 4th par.].
[Article 1845].
A limited partner is liable for partnership
obligations when he contributes services A person who has contributed capital to a
instead of only money or property to the partnership, erroneously believing that he
partnership [De Leon (2010)]. has become a limited partner, but his name
appears in the certificate as a general partner
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Exceptions: The limited partner is liable as a 5) To ask for dissolution and winding up
general partner when: by decree of court;
2) Receive any payment, conveyance, or when not all the other partners consent],
release from liability if it will prejudice when (1) and (2) above are complied with:
the right of third persons [Article 1854,
1) On the dissolution of the partnership;
1st par.].
2) Upon the arrival of the date specified
in the certificate for the return; or
Violation of the prohibition is considered a
3) After the expiration of a 6-month
fraud on the creditors of the partnership
notice in writing given by him to the
[Article 1854, 2nd par.].
other partners, if no time is fixed in
the certificate for:
H.3. RIGHT TO SHARE IN PROFITS a. The return of the
contribution; or
A limited partner may receive from the
partnership the share of the profits or the b. The dissolution of the
compensation by way of income stipulated partnership [Article 1857, 2nd
for in the certificate. par.].
This right is subject to the condition that General rule: A limited partner, irrespective of
partnership assets will still be in excess of the nature of his contribution has only the
partnership liabilities after such payment right to demand and receive cash in return for
[Article 1856]. The partnership liabilities being his contribution.
referred to exclude the liabilities to the
Exceptions: He may receive his contribution in
limited and general partners.
a form other than cash when:
1) There is a statement in the certificate
Ratio: Otherwise, he will receive a share to to the contrary; or
the prejudice of third-party creditors.
2) All the members of the partnership
consent [Article 1857, 3rd par.].
H.4. RIGHT TO RETURN OF
CONTRIBUTION
H.5. PREFERENCE OF LIMITED PARTNERS
A limited partner may have his contributions
General rule: The limited partners stand on
withdrawn or reduced when:
equal footing.
(1) All the liabilities of the partnership,
Exception: By an agreement of all the
except liabilities to general partners
partners [general and limited] in the
and to limited partners on account of
certificate, priority or preference may be given
their contributions, have been paid or
to some limited partners over others with
there remains property of the
respect to:
partnership sufficient to pay them;
1) The return of contributions;
(2) The consent of all members is had,
unless the return may be demanded 2) Their compensation by way of
as a matter of right; and income; or
(3) The certificate is cancelled or so 3) Any other matter [Article 1855].
amended as to set forth the
withdrawal or reduction [Article 1857,
1st par.]. H.6. RIGHT TO ASSIGN INTEREST
The interest of a limited partner is assignable.
The assignee may become:
The return of his contributions may be
demanded, as a matter of right [i.e., even A substituted limited partner; or
A mere assignee.
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4) Those to general partners other than sentenced to civil interdiction and the
for capital and profits; business is continued;
5) Those to general partners in respect 6) There is a change in the character of
to profits; the business of the partnership;
6) Those to general partners in respect 7) There is a false or erroneous
to capital [Article 1863, 1st par.]. statement in the certificate;
Note: In settling accounts of a general 8) There is a change in the time as
partnership, those owing to partners in stated in the certificate for the
respect to capital enjoy preference over those dissolution of the partnership or for
in respect to profits. the return of a contribution;
9) A time is fixed for the dissolution of
the partnership, or the return of a
J.2. SHARE IN THE PARTNERSHIP ASSETS
contribution, no time having been
The share of limited partners in respect to specified in the certificate; or
their claims for capital, profits, or for
10) The members desire to make a
compensation by way of income, is in
change in any other statement in the
proportion of their contribution, unless:
certificate in order that it shall
1) There is a statement in the certificate accurately represent the agreement
as to their share in the profits; or among them [Article 1864].
2) There is a subsequent agreement
fixing their share [Article 1863].
K.3. REQUIREMENTS FOR AMENDMENT
OR CANCELLATION
K. AMENDMENT OR CANCELLATION To amend or cancel a certificate:
OF CERTIFICATE 1. The amendment or cancellation must
K.1. CANCELLATION OF CERTIFICATE be in writing;
The certificate shall be cancelled when: 2. It must be signed and sworn to by all
the members including the new
1) The partnership is dissolved; or members, and the assigning limited
2) All limited partners cease to be such partner in case of substitution or
limited partners. addition of a limited or general
partner; and
3. The writing to amend (with the
K.2. AMENDMENT OF CERTIFICATE certificate, as amended) or to cancel
A certificate shall be amended when: must be filed for record in the SEC.
1) There is a change in the name of the When a person required to sign the writing, a
partnership or in the amount or person desiring the cancellation or
character of the contribution of any amendment may petition the court to order
limited partner; cancellation or amendment. The court shall
order the SEC to record the cancellation or
2) A person is substituted as a limited amendment if it finds that the petitioner has
partner; a right to have the writing executed.
3) An additional limited partner is From the moment the amended
admitted; certificate/writing or a certified copy of a
4) A person is admitted as a general court order granting the petition for
partner; amendment has been filed, such amended
certificate shall thereafter be the certificate of
5) A general partner retires, dies,
partnership [Article 1865].
becomes insolvent or insane, or is
CIVIL LAW
CREDIT
TRANSACTIONS
Contract of Loan vs. Contract to Loan Borrower must return Borrower need only
the same thing pay an equal amount
Contract of Loan Contract to Loan loaned [Art.1933] of the same kind and
quality [Art. 1953]
Real Contract: Consensual Contract:
perfected, not by perfected by mere May involve real or Refers only to
mere consent, but by consent. personal property personal property
delivery of the object [Art.1937]
An accepted promise
of the contract.
to deliver something
by way of Loan for permissive or Loan for consumption
commodatum or temporary use
[Art.1935]
simple loan is binding
upon the parties [Art. Bailor may demand Lender may not
1934] the return of the thing demand its return
loaned before the before the lapse of the
expiration of the term term agreed upon
Contracts Of Loan in case of urgent need
(1) Commodatum – a contract where one [Art.1946]
party delivers to another something not
consumable so that the latter may use Bailor suffers the loss Borrower suffers the
the same for a certain time and return it. of the subject matter loss even if caused
[Art. 1933] since he is the owner exclusively by a
[Art.1942; Art.1174] fortuitous event and
(2) Mutuum (Simple Loan) – a contract where he is not, therefore,
one party delivers to another, money or discharged from his
other consumable thing, upon the duty to pay
condition that the same amount of the
same kind and quality shall be paid. [Art. Purely personal in Not purely personal in
1933] character [Art 1939] character
(b) The use of the thing is merely (5) Obligation to pay for the ordinary
tolerated by the owner [Art. 1947] expenses for the use and preservation of
the thing loaned. [Art. 1941]
(6) Obligation to bear equally (with the
A.2. PARTIES
bailor) the extraordinary expenses arising
Bailor: creditor on the occasion of actual use of the thing
by the bailee even though he acted
Bailee: debtor
without fault. [Art. 1949]
Who may be a bailor in commodatum?
Exception: Contrary stipulation
Anyone. The bailor in commodatum need not
(7) Obligation to be solidarily liable when
be the owner of the thing loaned [Art. 1938],
there are two or more bailees to whom a
but as against the bailee, the bailor retains
thing is loaned in the same contract. [Art.
ownership of the thing loaned.
1945]
(8) No obligation to answer for deterioration
A.3. USE BY THE BAILEE of the thing loaned due only to the use
General rule: the bailee acquires permissive thereof and without his fault [Art. 1943]
use of the thing loaned only for himself. He NOTE: If, for the purpose of making use of the
may not lend nor lease the thing loaned to thing loaned, the bailee incurs ordinary or
him to a third person. extraordinary expenses which are neither for
Exception: the members of the bailee’s the use nor the preservation of the thing, he is
household may make use of the thing loaned not entitled to reimbursement. [Art. 1950]
(3) Obligation to not lend the thing to a third (b) Precarium [Art. 1947]
person who is not a member of his (c) If bailee commits any acts of
household. [Art. 1942 (4)] ingratitude in Art. 765: [Art. 1948]
(4) Obligation to return the thing upon the (i) Bailee committed some offense
expiration of the period stipulated or after against the person, honor or
the accomplishment of the use for which property of the bailor, or of his
it has been constituted. [Art. 1944, 1946] wife or children under his
Exception: parental authority;
Bailee has right of retention for damages (ii) Bailee imputes to bailor any
when the bailor who, knowing the flaws criminal offense, or any act
of the thing loaned, does not advise the involving moral turpitude, even
bailee of the same. [Arts. 1946, 1944] though he should prove it, unless
the crime or act has been
committed against the bailee
himself, his wife or children under of the use for which the commodatum
his authority; or has been constituted;
(iii) Bailee unduly refuses bailor (3) If the thing loaned has been delivered
support when bailee is legally or with appraisal of its value, unless there is
morally bound to give support the a stipulation exempting the bailee from
bailor. responsibility in case of a fortuitous
event;
(2) Obligation to refund the extraordinary
expenses during the contract for the (4) If he lends or leases the thing to a third
preservation of the thing loaned. [Art. person, who is not a member of his
1949] household;
Provided that: Bailee brings the same to (5) If, being able to save either the thing
the knowledge of the bailor before borrowed or his own thing, he chose to
incurring them, except when they are so save the latter. [Art. 1942]
urgent that the reply cannot be awaited
without danger.
A.8. RIGHT OF RETENTION
(3) Obligation to bear equally (with the
bailee) the extraordinary expenses arising General Rule: the bailee has no right of
on the occasion of actual use of the thing retention of the thing loaned on the ground
by the bailee. [Art. 1949] that the bailor owes him something, even
though it may be by reason of expenses. [Art.
Exception: Contrary stipulation
1944]
(4) Obligation to pay damages to the bailee
Exception: the bailee has the right of
for hidden flaws known to the bailor. [Art.
retention for damages arising from hidden
1951]
flaws. [Art. 1944, 1951]
NOTE: Bailor has no right of abandonment;
he cannot exempt himself from payment of
expenses or damages to the bailee by A.9. EXTINGUISHMENT
abandoning the thing to the latter. [Art. 1952]
(1) Death of either the bailor or the bailee
[Art. 1939]
A.6. LIABILITY FOR DETERIORATION (2) Expiration of term or accomplishment of
purpose [Art. 1946]
General rule: the bailee is liable for the
deterioration of the thing loaned. (3) Bailor demands the return in case the
bailee committed acts of ingratitude
Exception: when the deterioration of the thing
is due only to the use thereof and without his (4) Upon demand in case of precarium
fault. [Art. 1943]
(5) Bailor demands the return in case he has
urgent need of the thing loaned
A.7. LIABILITY FOR LOSS
General Rule: The Bailee is not liable for loss B. MUTUUM
of the thing due to fortuitous event. [Art. 1174]
Mutuum – a contract where one of the parties
Exceptions: Bailee is liable for loss of the (creditor) delivers to another
thing, even if it is through a fortuitous event: (debtor/borrower) money or other
(1) If he devotes the thing to any purpose consumable thing upon the condition that
different from that for which it has been the same amount of the same kind and
loaned; quality shall be paid.
(1) Obligation to pay to the creditor an equal indemnity for damages [Art.2209]
amount of the same kind and quality.
(b) Interest accruing from unpaid interest
[Art. 1953] If impossible to deliver the
– Interest demanded shall earn
same kind, pay value at the time of
interest from the time it is judicially
perfection of loan. [Art. 1955]
demanded [Art.2212] or where there
(2) If stipulated, the borrower has the is an express stipulation [Art.1959]
obligation to pay interest. [Art. 1956]
(2) Agreement must be in writing [Art.1956]
(3) Must be lawful
B.2. INTEREST AND SUSPENSION OF
USURY LAW
Rules for award of interest in the concept of
Interest– the compensation allowed by law or
actual and compensatory damages [Nacar v.
fixed by the parties for the loan or
Gallery Frames, G.R. No. 189871 (2013)
forbearance of money, goods or credits
modifying Eastern Shipping Lines vs. CA, G.R.
(conventional interest), or the amount
No. 97412 (1994) in light of BSP-MB Circular
imposed by law or by courts as penalty or
No. 799]
indemnity for damages (compensatory
interest) (1) When the obligation is breached, and it
consists in the payment of a sum of
(1) Simple interest – Paid for the principal at
money, i.e., a loan or forbearance of
a certain rate fixed or stipulated by the
money,
parties.
(a) The interest due should be that which
(2) Compound Interest – that which is
may have been stipulated in writing.
imposed upon interest due and unpaid.
(b) The interest due shall itself earn legal
Compound interest is allowed:
interest from the time it is judicially
(a) When there is an express written demanded.
stipulation to that effect [Art.1956]
(c) In the absence of stipulation, the rate
(b) Upon judicial demand. However, of interest shall be 6% per annum to
debtor is not liable to pay compound be computed from default, i.e., from
interest even after judicial demand judicial or extrajudicial demand under
when there is no stipulation for and subject to the provisions of
payment of interest. [Art.2212] Article 1169 of the Civil Code.
(3) Legal Interest – that which the law directs (2) When an obligation, not constituting a
to be charged in the absence of any loan or forbearance of money, is breached
agreement as to the rate between the
(a) An interest on the amount of
parties.
damages awarded may be imposed
(4) Lawful Interest – that which the laws at the discretion of the court at the
allow or do not prohibit. rate of 6% per annum.
(5) Unlawful or Usurious Interest – paid or (b) No interest, however, shall be
stipulated to be paid beyond the adjudged on unliquidated claims or
maximum fixed by law. damages, except when or until the
demand can be established with
reasonable certainty.
B.3. REQUISITES FOR INTEREST TO BE
(c) Where the demand is established
CHARGEABLE
with reasonable certainty, the interest
(1) Must be expressly stipulated [Art. 1956] shall begin to run from the time the
Exceptions: claim is made judicially or
extrajudicially [Art. 1169, Civil Code]
(a) The debtor in delay is liable to pay
(d) When such certainty cannot be so
legal interest (6% per annum) as
reasonably established at the time
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PARTIES
B.4. ELEMENTS OF USURY
Depositor: the person who delivers, or
(a) A loan or forbearance of money formally transfers, gives, or yields possession
(b) An understanding between parties that or control of the movable property
the loan shall and may be returned Depositary: the person who receives it
(c) An unlawful intent to take more than the
legal rate for the use of money or its
equivalent KINDS OF DEPOSIT
(d) The taking or agreeing to take for the use (1) Extrajudicial
of the loan of something in excess of (a) Voluntary – obligation arises as a
what is allowed by law. consequence of contract;
Note: A usurious loan transaction is not a (b) Necessary – obligation arises as a
complete nullity but defective only with consequence of law or quasi-contract
respect to the agreed interest. [Carpo v. Chua,
G.R. Nos. 150773 and 153599 (2005)] (2) Judicial – obligation arises as a
Although usury is legally inexistent, courts consequence of a law allowing the
will not hesitate to declare void “excessive, issuance of a judicial order constituting a
iniquitous, unconscionable, exorbitant” deposit
interest. [Gomez-Somera in re: Carpo v. Chua] A. VOLUNTARY DEPOSIT
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Voluntary deposit –the deposit itself is a real however, is greater if the deposit is for
contract, as it is not perfected until the compensation.
delivery of the thing. [Art. 1968] A contract to
Exceptions:
deposit, or an agreement to constitute a
deposit, is consensual and binding. (1) Loss is through his fault or negligence
[Art. 1170], even if the thing was insured
A deposit may be made by two or more
[Art. 2207];
persons (who believe that they are entitled to
the thing deposited with a third person). The (2) Loss while in his possession, ordinarily
third person is to deliver the thing to the one raises presumption of fault on his part.
to whom it belongs. [Art. 1968] [See Art. 1265]
How Entered Into: Orally or in writing [Art. (3) Loss is through a fortuitous event if
1969]
(a) It is stipulated that depositary will be
How Perfected: The deposit is perfected upon liable;
delivery, which is made by the will of the
(b) Depositary uses the thing without
depositor. [Arts. 1963, 1968]
Depositor’s permission;
(c) Depositary delays its return;
A.1. EXTINGUISHMENT
(d) Depositary allows others to use it.
(1) Loss or destruction of thing deposited, or [Art 1979]
(2) In case of a gratuitous deposit, upon the (4) Loss when depositary deposits the thing
death of either the depositor or with a third person
depositary [Art. 1995]. The depositary is
Exception: if deposit with a third person is
not obliged to continue with the contract
allowed
of deposit
Exception to the exception: if such third
(3) By other modes provided in the Civil
person is manifestly careless or unfit [Art.
Code, e.g. novation, merger, etc. [See
1973];
Art.1231]
(5) Depositary also liable for negligence of
employee [Ibid.];
A.2. OBLIGATIONS OF A DEPOSITARY
(6) Loss when depositary uses the thing
(1) Depositary is obliged to keep the thing Exception: use with permission or for
safely and
preservation
(2) Depositary is obliged to return it to the
(7) Even if the depositary is not liable, if the
depositor, heirs, successors or person
he receives money/replacement, he must
designated in the contract, when required
deliver such to the depositor [Art. 1990]
[Art. 1972], together with all its products,
accessories and accessions. [Art. 1983] at
the place designated when deposit was A.3. AUTHORITY OF DEPOSITARY
made. Otherwise, where the thing may be
[Art. 1987] (1) Depositary may change way of deposit if
he may reasonably presume that the
Exception to return on demand: when the depositor would consent if he knew the
thing is judicially attached while in the situation. He is to notify the depositor
depositary’s possession, or when thereof and wait for the latter’s decision,
depositary is notified of the opposition of unless delay would cause danger. [Art.
a third person [Art. 1988] 1974]
Depositary NOT LIABLE FOR LOSS (2) Depositary can collect on interest earned
General rule: The depositary is not liable in by certificates, bonds, securities and
the event of loss. The required degree of care instruments when it becomes due. [Art
1975]
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(2) If he should lose his capacity to contract (2) The latter have taken the precautions
after having made the deposit, the thing prescribed regarding their safekeeping.
cannot be returned except to persons
who may have administration of his
property and rights. [Art. 1986].
(b) Include those lost or damaged in hotel The right of retention recognized in this
annexes such as vehicles in the hotel’s article is in the nature of a pledge created by
garage. operation of law.
Guaranty Surety
III. Guaranty and
not bound to take
Suretyship notice of its non-
performance
Guaranty – a contract whereby a person
(guarantor) binds himself to the creditor to A guarantor is often A surety will not be
fulfill the obligation of the principal debtor in discharged by the discharged, either by
case the latter should fail to do so. [Art. 2047] mere indulgence of the mere indulgence
the creditor to the of the creditor to the
Suretyship – a relation which exists where principal, and is principal, or by want
one person [principal] has undertaken an usually not liable of notice of the
obligation and another person (surety) is also unless notified of the default of the
under a direct and primary obligation or other default of the principal, no matter
duty to a third person (obligee), who is principal how much he may be
entitled to but one performance, and as
injured thereby
between the two who are bound, the one
rather than the other should perform.
A guarantor is the A surety is the insurer
While a surety undertakes to pay if the insurer of the of the debt, and he
principal does not pay, the guarantor only solvency of the obligates himself to
binds himself to pay if the principal is unable debtor and thus pay if the principal
to pay. [See benefit of excussion, Art. 2058] binds himself to pay does not pay
if the principal is
unable to pay
Guaranty distinguished from Suretyship
[Zobel, Inc. vs. CA, G.R. No. 113931 (1998)]
Guaranty Surety A. NATURE AND EXTENT OF
GUARANTY
A collateral An accessory promise
undertaking to pay by which a person General rule: Guaranty is gratuitous
the debt of another binds himself for Exception: When there is a stipulation to the
in case the latter is another already contrary [Art. 2048]
unable to pay the bound, and agrees
debt. with the creditor to
satisfy the obligation On the cause of a guaranty contract
if the debtor does not
A guarantor or surety is bound by the same
The contract of A surety is usually consideration that makes the contract
guaranty is the bound with his effective between the principal parties
guarantor's own principal by the same thereto. [Severino v. Severino, et al., G.R. No.
separate instrument, executed 34642 (1931)]
undertaking, in which at the same time, and
Guaranty or surety agreement is regarded
the principal does on the same
valid despite the absence of any direct
not join. It is usually consideration. He is
consideration received by the guarantor or
entered into before an original promissor
surety, such consideration need not pass
or after that of the and debtor from the
directly to the guarantor or surety; a
principal, and is beginning, and is
consideration moving to the principal will
often supported on a held, ordinarily, to
suffice.
separate know every default of
consideration from his principal.
that supporting the
General Rule: A married woman who is a
contract of the
guarantor binds only her separate property
principal. The
[Art. 2049]
original contract of
his principal is not his Exceptions:
contract, and he is
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(a) With her husband’s consent, bind the obligation [Art. 2052(2)]
community or conjugal partnership
A guaranty may secure the performance of a:
property
(1) Voidable contract – such contract is
(b) Without husband’s consent, in cases
binding, unless it is annulled by a proper
provided by law, such as when the
court action
guaranty has redounded to the benefit of
the family. (2) Unenforceable contract – because such
contract is not void
(3) Natural obligation – the creditor may
A guaranty need not be undertaken with the
proceed against the guarantor although
knowledge of the debtor [Art. 2050]
he has no right of action against the
Guaranty is unilateral. It exists for the benefit principal debtor for the reason that the
of the creditor and not for the benefit of the latter’s obligation is not civilly
principal debtor enforceable. When the debtor himself
offers a guaranty for his natural
obligation, he impliedly recognizes his
Creditor has every right to take all possible liability, thereby transforming the
measures to secure payment of his credit— obligation from a natural into a civil one.
guaranty can be constituted even against the
will of the principal debtor
A guaranty may secure a future debt [Art.
2053]
However, as regards payment made by a third
Continuing Guaranty
person—
(1) Not limited to a single transaction but
(a) If payment is without the knowledge or
which contemplates a future course of
against the will of the debtor—
dealings, covering a series of transactions
(i) Guarantor can recover only insofar as generally for an indefinite time or until
the payment has been beneficial to revoked.
the debtor [Art. 1236]
(2) It is prospective in its operation and is
(ii) Guarantor cannot compel the creditor generally intended to provide security
to subrogate him in his rights [Art. with respect to future transactions.
1237]
(3) Future debts, even if the amount is not
(b) If payment is with knowledge or consent yet known, may be guaranteed but there
of the debtor: Subrogated to all the can be no claim against the guarantor
rights which the creditor had against the until the amount of the debt is
debtor ascertained or fixed and demandable.
Exception:
E. The creditor has the duty to resort to all (1) Liability will be solidary if it has been
legal remedies [Arts. 2058, 2061] expressly stipulated.
After the guarantor has fulfilled the (2) Also, the circumstances enumerated
conditions required for making use of the in Art. 2059 will preclude application
benefit of excussion, it becomes the duty of the benefit of division.
of the creditor to:
(1) Exhaust all the property of the debtor
C.2. EFFECTS OF GUARANTY BETWEEN
pointed out by the guarantor;
THE DEBTOR AND THE GUARANTOR
(2) If he fails to do so, he shall suffer the
A. The guarantor who pays has the right to
loss for the insolvency of the debtor,
be subrogated to the rights of the creditor
but only to the extent of the value of
[Art. 2067]
the said property
A guarantor who pays the debt is entitled
to every remedy which the creditor has
F. The creditor has the duty to notify the against the principal debtor, to enforce
guarantor in the action against the debtor every security and all means of payments;
[Art. 2062] to stand in the place of the creditor not
only through the medium of the contract,
Notice to the guarantor is mandatory in
but even by means of the securities
the action against the principal debtor.
entered into without the knowledge of
The guarantor, however, is not duty
the surety; having the right to have those
bound to appear in the case, and his non-
securities transferred to him though there
appearance shall not constitute default,
was no stipulation for it, and to avail
w/ its consequential effects.
himself of all securities against the
Rationale: To give the guarantor the debtor.
opportunity to allege and substantiate
However, if a guarantor has compromised
whatever defenses he may have against
with the creditor for the payment of the
the principal obligation, and chances to
obligation, then the guarantor cannot
set up such defenses as are afforded him
demand more than what he has really
by law
paid.
General rule: Since a contract of guaranty take measures for the protection of his
is only subsidiary, the guarantor cannot interest in view of the probability that he
be liable for the obligation before the would be called upon to pay the debt. As
period on which the debtor’s liability will such, he may, in the alternative, obtain
accrue. Any payment made by the release from the guaranty; or demand
guarantor before the obligation is due security that shall protect him from any
cannot be indemnified by the debtor. proceeding by the creditor, and against
the insolvency of the debtor.
Exception: Prior consent or subsequent
ratification by the debtor
Art. 2066 and 2071 Distinguished
D. The guarantor may proceed against the Art. 2066 Art. 2071
debtor even before payment has been
Provides for the Provides for the
made [Art. 2071]
enforcement of the protection before
General rule: Guarantor has no cause of guaranty/surety he has paid but
action against the debtor until after the against the debtor after he has
former has paid the obligation. after he has paid the become liable, but
Exceptions [Art. 2071]: debt before payment of
the debt
(a) When he is sued for the payment;
Gives a right of action Protective remedy
(b) In case of insolvency of the principal after payment before payment
debtor;
Substantive Right Preliminary remedy
(c) When the debtor has bound himself
to relieve him from the guaranty
within a specified period, and this C.3. EFFECTS OF GUARANTY AS BETWEEN
period has expired; CO-GUARANTORS
(d) When the debt has become (a) The one who pays may demand from
demandable, by reason of the each of the others the share
expiration of the period for payment; proportionally owing to him
(e) After the lapse of 10 years, when the (b) If any of the guarantors is insolvent, his
principal obligation has no fixed share shall be borne by the others,
period for its maturity, unless it be of including the payer, in the same
such nature that it cannot be proportion [Art. 2073]
extinguished except within a period
longer than 10 years;
(f) If there are reasonable grounds to Requisites for the applicability of Art. 2073
fear that the principal debtor intends (1) Payment has been made by one
to abscond; guarantor;
(g) If the principal debtor is in imminent (2) The payment was made because
danger of becoming insolvent.
(a) Of the insolvency of the debtor, or
(b) By judicial demand
When any of these grounds for exceptions
are present, then the guarantor may (1) (3) The paying guarantor seeks to be
obtain release from the guaranty, or (2) indemnified only to the extent of his
demand a security that shall protect him proportionate share in the total
from any proceedings by the creditor and obligation.
from the danger of insolvency of the
debtor.
For purposes of proportionate
Rationale: To enable the guarantor to reimbursement, the other guarantors may
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interpose such defenses against the paying (2) pursuant to an enforceable agreement
guarantor as are available to the debtor between the principal and the creditor,
against the creditor, except those that are and
personal to the debtor [Art. 2074]
(3) that it was made without the consent of
the surety or with a reservation of rights
with respect to him. [Filipinas Textile Mills
D. EXTINGUISHMENT OF GUARANTY v. CA, G.R. No. 119800 (2003)]
C. ESSENTIAL REQUISITES
B. KINDS
(1) Voluntary or Conventional – created by
agreement of the parties. C.1. PROVISIONS COMMON TO PLEDGE
AND MORTGAGE [ART. 2085]
(2) Legal – created by operation of law.
(1) Constituted to secure the fulfillment of a
principal obligation.
B.1. LEGAL PLEDGE / PLEDGE BY (2) Pledgor or mortgagor must be the
OPERATION OF LAW [ARTS. 2121-2122] absolute owner of the thing pledged or
(1) Necessary expenses shall be refunded to mortgaged.
every possessor, but only a possessor in (3) The persons constituting the pledge or
good faith may retain the thing until he mortgage have the free disposal of their
has been reimbursed. property, and in the absence thereof, that
Useful expenses shall be refunded only to they be legally authorized for the
the possessor in good faith with the same purpose.
right of retention, the person who has Note: Third persons who are not parties
defeated him in the possession having to the principal obligation may secure the
the option of refunding the amount of the latter by pledging or mortgaging their
expenses or of paying the increase in own property. [Art. 2085]
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(4) Cannot exist without a valid obligation, a pledge or a dation in payment, the
but may be constituted to guarantee the presumption is in favor of pledge, the latter
performance of a voidable or being the lesser transmission of rights and
unenforceable contract. [Art. 2052] interests. [Manila Banking Corp. v. Teodoro,
G.R. No. 53955 (1989)]
(5) Debtor retains the ownership of the thing
given as a security.
(6) When the principal obligation becomes D. REQUISITES FOR PERFECTION
due, the thing pledged or mortgaged may
be alienated for the payment to the (1) For the pledge to take effect between the
creditor. [Art. 2087] parties, the thing pledged is placed in the
possession of the creditor or a third
person [Art. 2093]
C.2. PROVISIONS APPLICABLE ONLY TO (2) For the pledge to take effect as against
PLEDGE third persons, a description of the thing
(1) Transfer of possession to the creditor or pledged and the date of the pledge
to third person by common agreement is should appear in a public instrument [Art.
essential [Art. 2093]. 2096]
with expenses in a proper case [Art. a second one with the same formalities
2105]. shall be held.
(3) Subject to the right of the pledgee under (6) If at the second auction, there is no sale
Article 2108, pledgor is allowed to either, the creditor may appropriate the
substitute the thing which is in danger of thing pledged but he shall give an
destruction or impairment without any acquittance (release) for his entire claim.
fault on the part of the pledgee with
another thing of the same kind and
G.2. EFFECTS OF THE SALE OF THE THING
quality [Art. 2107].
PLEDGED
(4) May require that the thing be deposited
[Art. 2115]
with a 3rd person, if through the
negligence or willful act of the pledgee (1) Extinguishes the principal obligation,
the thing is in danger of being lost or whether the proceeds of the sale is more
impaired [Art. 2106]. or less than the amount due.
(2) General Rule: If the price of sale is more
than amount due, the debtor is not
The pledgee can temporarily entrust the
entitled to the excess
physical possession of the chattels pledged
to the pledgor without invalidating the Exception: (1) Unless the contrary is
pledge. The pledgor is regarded as holding provided. (2) Legal pledge
the pledged property merely as trustee for
(3) If the price of sale is less, the creditor is
the pledgee. The type of delivery will depend
not entitled to recover the deficiency. A
upon the nature and the peculiar
contrary stipulation is void.
circumstances of each case. [Yuliongsiu v.
PNB, G.R. No. L-19227 (1968)]
A pledgee cannot become the owner of, nor H. PLEDGE AS DISTINGUISHED FROM
appropriate to himself, the thing given in CHATTEL MORTGAGE [ARTS. 2140,
pledge. If by the contract of pledge the 1484]
pledgor continues to be the owner of the
thing pledged during the pendency of the Pledge Chattel Mortgage
obligation, it stands to reason that in case of Delivery of Personal Property
loss of the property, the loss should be borne
by the pledgor. [PNB v. Atendido, G.R. No. L- Delivery is required Not required
6342 (1954)] for validity
Registration in the Chattel Mortgage Register
G. FORECLOSURE Not necessary; Necessary for validity
of the CM against
Public document is
third persons
enough to bind third
G.1. REQUIREMENTS IN SALE OF THE persons
THING PLEDGED BY A CREDITOR, IF
CREDIT IS NOT PAID ON TIME Right to Excess of Proceeds of Sale
[Art. 2112] The excess goes to The excess goes to the
the debtor/ mortgagor
(1) Debt is due and unpaid. pledgee/creditor,
(2) Sale must be at a public auction. unless otherwise
stipulated
(3) Notice to the pledgor and owner, stating
the amount due. Note: In legal
pledge, the excess
(4) Sale must be made with the intervention goes to the debtor
of a notary public. [Art. 2121]
(5) If at the first auction the thing is not sold,
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E. FORECLOSURE
Kinds of foreclosure
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Although these subsequent or junior lien- A real estate mortgage may be extrajudicially
holders acquire the equity of redemption, foreclosed only if there is a special power
this right is strictly subordinate to the inserted or attached to the document in
superior lien of the first mortgagee. which the real estate mortgage appears and
[Gomez-Somera] only in accordance with the provisions of Act
No. 3135. [Gomez-Somera]
(3) If the mortgagor fails to pay at time
directed, the court, upon motion, shall
order the property to be sold to the
[Act No. 3135]
highest bidder at a public auction.
(1) Applies to mortgages where the authority
(4) Upon confirmation of the sale by the
to foreclose is granted to the mortgagee.
court, also upon motion, it shall operate
to divest the rights of all parties to the (2) Authority is not extinguished by death of
action and to vest their rights to the mortgagor or mortgagee. This is an
purchaser subject to such rights of agency coupled with interest.
redemption as may be allowed by law.
(3) Public sale should be made after proper
Note: A foreclosure sale is not complete notice to the public; otherwise, it is a
until it is confirmed. Thus, after the jurisdictional defect which could render
foreclosure sale but before its the sale voidable.
confirmation, the court may grant the
General Rule: Statutory provisions
judgment debtor or mortgagor the equity
governing posting of notice must be
of redemption.
strictly complied with and even slight
(5) Before the confirmation, the court retains deviations will invalidate the notice.
control of the proceedings; execution on
Exception: If the objectives are attained,
judgment
immaterial errors and mistakes may not
(6) The proceeds of the sale shall be applied affect the sufficiency of the notice.
to the payment of the: [Metropolitan Bank and Trust Company v.
Wong, G.R. No. 120859 (2001) discussing
(a) costs of the sale;
Olizon v. CA, G.R. No. 107075 (1994)]
(b) amount due the mortgagee;
(4) There is no need to notify the mortgagor,
(c) claims of junior encumbrancers or where there is no contractual stipulation
persons holding subsequent therefor.
mortgages in the order of their
Proper notice consists of:
priority; and
(a) posting notice in three public places
(d) the balance, if any shall be paid to
and/or
the mortgagor
(b) publication in newspaper of general
(7) Sheriff’s certificate is executed,
circulation
acknowledged and recorded to complete
the foreclosure Purpose of notice is to obtain the best bid
for the foreclosed property
(5) Surplus proceeds of foreclosure sale
Nature of judicial foreclosure proceedings
belong to the mortgagor.
(1) Quasi in rem action. Hence, jurisdiction
(6) Debtor (who must be a natural person)
may be acquired through publication.
has the right to redeem the property sold
(2) Foreclosure is only the result or incident within 1 year from and after the date of
of the failure to pay debt. sale.
(3) Survives death of mortgagor. (a) If the mortgagee is a bank, quasi-bank
or trust entity and the debtor is a
juridical person, then there is no right
G.2. EXTRAJUDICIAL FORECLOSURE of redemption. However, juridical
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(4) Be liable for any fortuitous event under (b) Reimburse the gestor for the necessary
the following conditions: and useful expenses and for the damages
the latter may have suffered in the
(a) If he undertakes risky operations
performance of his duties
which the owner was not accustomed
to embark upon The above obligations shall be incumbent
upon the owner if the management had for
(b) If he has preferred his own interest to
its purpose the prevention of an imminent
that of the owner
and manifest loss, although no benefit may
(c) If he fails to return the property or have been derived. [Art. 2150]
business after demand of the owner
If the owner did not derive any benefit and
(d) If he assumed management in bad there was no imminent and manifest danger
faith [Art. 2147] to the property or business, the owner would
still be liable for the abovementioned
(e) If he is manifestly unfit to carry on the
obligations and expenses, provided:
management
(1) The gestor has acted in good faith; and
(f) If by his intervention he prevented a
more competent person from taking (2) The property or business is intact, ready
up the management. [Art. 2148] to be returned to the owner. [Art. 2151]
Note: The gestor shall not be liable for (e)
and (f) if the management was assumed
A.3. EFFECT OF RATIFICATION
to save the property or business from
imminent danger. The ratification of the management by the
owner of the business produces the effects of
(5) Be personally liable for contracts which
an express agency, even if the business may
he entered into with third persons, even
not have been successful. [Art. 2149]
though he acted in the name of the
owner, and there shall be no right of
action between the owner and third
A.4. EXTINGUISHMENT OF MANAGEMENT
persons.
(1) When the owner repudiates or puts an
The gestor shall NOT be personally liable
end thereto
for such contracts, provided:
(2) When the gestor withdraws from the
(a) The owner has expressly or tacitly
management, subject to Art. 2144
ratified the management, or
(3) By the death, civil interdiction, insanity or
(b) When the contract refers to things
insolvency of the owner or the gestor.
pertaining to the owner of the
[Art. 2153]
business. [Art. 2152]
Note: The responsibility of two or more
gestors shall be solidary, unless the B. SOLUTIO INDEBITI (UNDUE
management was assumed to save the PAYMENT)
thing or business from imminent danger.
Solutio indebiti – takes place when something
is received when there is no right to demand
A.2. OBLIGATIONS OF THE OWNER OF THE it, and it was unduly delivered through
PROPERTY OR BUSINESS mistake. The recipient has the duty to return
it [Art. 2154].
Although the management was not expressly
ratified, the owner who enjoys the This situation covers payment by reason of a
advantages of the same shall: mistake in the construction or application of a
doubtful or difficult question of law [Art.
(a) Be liable for the obligations incurred in 2155]
his interest
B.1. WHEN DEBT NOT YET DUE (2) For the return of the price or assign the
action to collect the sum if he has
If the payer was in doubt whether the debt
alienated the same. [Art. 2160]
was due, he may recover if he proves that it
was not due. [Art. 2156]
B.5. EXEMPTION FROM THE OBLIGATION
TO RESTORE THE PAYMENT UNDULY
B.2. RESPONSIBILITY OF TWO OR MORE
MADE
PAYEES
A person who, believing in good faith that the
When there has been payment of what is not
payment was being made of a legitimate and
due, their responsibility is solidary.
subsisting claim,
(1) destroyed the document, or
B.3. WHEN MONEY OR THING DELIVERED
(2) allowed the action to prescribe, or
IS OWNED BY THIRD PERSON
(3) gave up the pledges, or
The payee cannot demand that the payor
prove his ownership of the thing delivered. (4) cancelled the guaranties for his right
shall be exempt from the obligation to
Nevertheless, should he discover that the
restore.
thing has been stolen and who its true owner
is, he must advise the latter. The person who paid unduly may proceed
only against the true debtor or the guarantors
If the owner, in spite of such information,
with regard to whom the action is still
does not claim it within the period of one
effective. [Art. 2162]
month, the payee shall be relieved of all
responsibility by returning the thing
deposited to the payor.
B.6. PRESUMPTION OF PAYMENT BY
If the payee has reasonable grounds to MISTAKE, DEFENSE
believe that the thing has not been lawfully
The presumption arises if something which
acquired by the payor, the former may return
had never been due or had already been paid
the same. [Art. 2158]
was delivered; but he from whom the return
is claimed may prove that the delivery was
made out of liberality or for any other just
B.4. LIABILITY OF PAYEE
cause.
If in bad faith, he shall be liable:
(1) For legal interest if a sum of money is
involved, or C. OTHER QUASI-CONTRACTS
(2) For the fruits received or which should (1) When, without the knowledge of the
have been received if the thing produces person obliged to give support, it is given
fruits, and by a stranger, the latter shall have a right
to claim the same from the former, unless
(3) For any loss or impairment of the thing it appears that he gave it out of piety and
for any cause, and without intention of being repaid. [Art.
(4) For damages to the person who delivered 2164]
the thing, until it is recovered. [Art. 2159] (2) When funeral expenses are borne by a
third person, without the knowledge of
those relatives who were obliged to give
If in good faith, he shall be liable: support to the deceased, said relatives
(1) For the impairment or loss of the thing shall reimburse the third person, should
certain and determinable or its the latter claim reimbursement. [Art.
accessories and accessions insofar as he 2165]
has thereby been benefited. (3) When the person obliged to support an
orphan, or an insane or other indigent
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person unjustly refuses to give support to and refuses to contribute to the expenses
the latter, any third person may furnish but is benefited by the project as
support to the needy individual, with right executed shall be liable to pay his share
of reimbursement from the person of said expenses. [Art. 2174]
obliged to give support. The provisions of
(12) Any person who is constrained to pay the
this article apply when the father or
taxes of another shall be entitled to
mother of a child under eighteen years of
reimbursement from the latter. [Art.
age unjustly refuses to support him. [Art.
2175]
2166]
(4) When through an accident or other cause
a person is injured or becomes seriously
ill, and he is treated or helped while he is
not in a condition to give consent to a
contract, he shall be liable to pay for the
services of the physician or other person
aiding him, unless the service has been
rendered out of pure generosity. [Art.
2167]
(5) When during a fire, flood, storm, or other
calamity, property is saved from
destruction by another person without
the knowledge of the owner, the latter is
bound to pay the former just
compensation. [Art. 2168]
(6) When the government, upon the failure of
any person to comply with health or
safety regulations concerning property,
undertakes to do the necessary work,
even over his objection, he shall be liable
to pay the expenses. [Art. 2169]
(7) When by accident or other fortuitous
event, movables separately pertaining to
two or more persons are commingled or
confused, the rules on co-ownership shall
be applicable. [Art. 2170]
(8) The rights and obligations of the finder of
lost personal property shall be governed
by Articles 719 and 720. [Art. 2171]
(9) The right of every possessor in good faith
to reimbursement for necessary and
useful expenses is governed by Article
546. [Art. 2172]
(10) When a third person, without the
knowledge of the debtor, pays the debt,
the rights of the former are governed by
Articles 1236 and 1237. [Art. 2173]
(11) When in a small community a nationality
of the inhabitants of age decide upon a
measure for protection against
lawlessness, fire, flood, storm or other
calamity, anyone who objects to the plan
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the order of preference in 2244. [Gomez- (4) Credits guaranteed with a pledge so long
Somera] as the things pledged are in the hands of
For Articles 2242 and 2249 to apply, there the creditor, or those guaranteed by a
must be first some proceedings where the chattel mortgage, upon the things
claims of all the preferred creditors may be pledged or mortgaged, up to the value
bindingly adjudicated [De Barretto v. thereof;
Villanueva, G.R. No. L-14938, resolution (5) Credits for the making, repair,
(1962)]. This applies to cases involving either safekeeping or preservation of personal
specific immovable or specific movable property, on the movable thus made,
property. [DBP v CA, G.R. No. 126200 (2001)] repaired, kept or possessed;
Taxes and assessments in 2244 do not have (6) Claims for laborers' wages, on the goods
the overriding preference that 2241 and 2242 manufactured or the work done;
create. [Gomez-Somera]
(7) For expenses of salvage, upon the goods
salvaged;
(3) Common Credits (8) Credits between the landlord and the
These enjoy no preference, as there is only a tenant, arising from the contract of
concurrence of credits, which must be paid tenancy on shares, on the share of each in
pro rata regardless of dates [Arts. 2245, 2251]. the fruits or harvest;
(9) Credits for transportation, upon the
These are not liens and do not attach to any
specific property of the debtor. [Gomez- goods carried, for the price of the contract
Somera] and incidental expenses, until their
delivery and for thirty days thereafter;
(10) Credits for lodging and supplies usually
B.1. SPECIAL PREFERRED CREDITS ON furnished to travellers by hotel keepers,
SPECIFIC MOVABLE PROPERTY on the movables belonging to the guest
as long as such movables are in the hotel,
Art. 2241. With reference to specific movable
but not for money loaned to the guests;
property of the debtor, the following claims
or liens shall be preferred: (11) Credits for seeds and expenses for
cultivation and harvest advanced to the
(1) Duties, taxes and fees due thereon to the
debtor, upon the fruits harvested;
State or any subdivision thereof;
(12) Credits for rent for one year, upon the
(2) Claims arising from misappropriation,
personal property of the lessee existing
breach of trust, or malfeasance by public
on the immovable leased and on the
officials committed in the performance of
fruits of the same, but not on money or
their duties, on the movables, money or
instruments of credit;
securities obtained by them;
(3) Claims for the unpaid price of movables (13) Claims in favor of the depositor if the
depositary has wrongfully sold the thing
sold, on said movables, so long as they
deposited, upon the price of the sale.
are in the possession of the debtor, up to
the value of the same; and if the movable
has been resold by the debtor and the
In the foregoing cases, if the movables to
price is still unpaid, the lien may be
which the lien or preference attaches have
enforced on the price; this right is not lost
been wrongfully taken, the creditor may
by the immobilization of the thing by
demand them from any possessor, within
destination, provided it has not lost its
thirty days from the unlawful seizure.
form, substance and identity; neither is
the right lost by the sale of the thing
together with other property for a lump
Trade-related claim preference over trade-
sum, when the price thereof can be
related assets
determined proportionally;
Sec 136. RA 10142. …trade-related claims of imposed upon the donee, upon the
clients or customers of a securities market immovable donated;
participant which, for purposes of investor
(10) Credits of insurers, upon the property
protection, are hereby deemed to have
insured, for the insurance premium for
absolute priority over all other claims of
two years.
whatever nature or kind insofar as trade-
related assets are concerned.
B.3. ORDINARY PREFERRED CREDITS
B.2. SPECIAL PREFERRED CREDITS ON Art 2244. With reference to other property,
SPECIFIC IMMOVABLE PROPERTY AND real and personal, of the debtor, the
REAL RIGHTS following claims or credits shall be preferred
in the order named:
Art. 2242. With reference to specific
immovable property and real rights of the (1) Proper funeral expenses for the debtor, or
debtor, the following claims, mortgages and children under his or her parental
liens shall be preferred, and shall constitute authority who have no property of their
an encumbrance on the immovable or real own, when approved by the court;
right:
(2) Credits for services rendered the insolvent
(1) Taxes due upon the land or building; by employees, laborers, or household
helpers for one year preceding the
(2) For the unpaid price of real property sold,
commencement of the proceedings in
upon the immovable sold;
insolvency;
(3) Claims of laborers, masons, mechanics
(3) Expenses during the last illness of the
and other workmen, as well as of
debtor or of his or her spouse and
architects, engineers and contractors,
children under his or her parental
engaged in the construction,
authority, if they have no property of their
reconstruction or repair of buildings,
own;
canals or other works, upon said
buildings, canals or other works; (4) Compensation due the laborers or their
dependents under laws providing for
(4) Claims of furnishers of materials used in
indemnity for damages in cases of labor
the construction, reconstruction, or repair
accident, or illness resulting from the
of buildings, canals or other works, upon
nature of the employment;
said buildings, canals or other works;
(5) Credits and advancements made to the
(5) Mortgage credits recorded in the Registry
debtor for support of himself or herself,
of Property, upon the real estate
and family, during the last year preceding
mortgaged;
the insolvency;
(6) Expenses for the preservation or
(6) Support during the insolvency
improvement of real property when the
proceedings, and for three months
law authorizes reimbursement, upon the
thereafter;
immovable preserved or improved;
(7) Fines and civil indemnification arising
(7) Credits annotated in the Registry of
from a criminal offense;
Property, in virtue of a judicial order, by
attachments or executions, upon the (8) Legal expenses, and expenses incurred in
property affected, and only as to later the administration of the insolvent's
credits; estate for the common interest of the
creditors, when properly authorized and
(8) Claims of co-heirs for warranty in the
approved by the court;
partition of an immovable among them,
upon the real property thus divided; (9) Taxes and assessments due the national
government, other than those mentioned
(9) Claims of donors or real property for
in Articles 2241, No. 1, and 2242, No. 1;
pecuniary charges or other conditions
(10) Taxes and assessments due any province, fees due the State or any subdivision
other than those referred to in Articles thereof [Art. 2247]
2241, No. 1, and 2242, No. 1; (3) Those credits which enjoy preference in
(11) Taxes and assessments due any city or relation to specific real property or real
municipality, other than those indicated rights exclude all others to the extent of
in Articles 2241, No. 1, and 2242, No. 1; the value of the immovable or real right
to which the preference refers [Art.2248].
(12) Damages for death or personal injuries
caused by a quasi-delict; (4) If there are two or more credits with
respect to the same specific real property
(13) Gifts due to public and private institutions
or real rights, they shall be satisfied pro
of charity or beneficence;
rata, after the payment of the taxes and
(14) Credits which, without special privilege, assessment of the taxes and assessments
appear in [a] a public instrument; or (b) in upon the immovable property or real
a final judgment, if they have been the right [Art. 2249].
subject of litigation. These credits shall
(5) The excess, if any, after the payment of
have preference among themselves in the
the credits which enjoy preference with
order of priority of the dates of the
respect to specific property, real or
instruments and of the judgments,
personal, shall be added to the free
respectively.
property which the debtor may have, for
the payment of other credits [Art. 2250].
Worker preference in case of bankruptcy (6) Those credits which do not enjoy any
preference with respect to specific
PD 442 Labor Code, as amended, Art. 110. In property, and those which enjoy
the event of bankruptcy or liquidation of an preference, as to the amount not paid,
employer’s business, his workers shall enjoy shall be satisfied according to the
first preference as regards their wages and following rules:
other monetary claims, any provisions of law
to the contrary notwithstanding. Such unpaid (a) Order established by Art. 2244
wages and monetary claims shall be paid in (b) Common credits referred to in Art.
full before claims of the government and 2245 shall be paid pro rata
other creditors may be paid. regardless of dates [Art. 2251].
B.4. COMMON CREDITS Articles 2241 and 2242 jointly with Articles
Art. 2245. Credits of any other kind or class, 2246 to 2249 establish a two-tier order of
or by any other right or title not comprised in preference. The first tier includes only taxes,
the four preceding articles, shall enjoy no duties and fees due on specific movable or
preference. immovable property. All other special
preferred credits stand on the same second
tier to be satisfied pari passu and pro rata, out
C. ORDER OF PREFERENCE OF of any residual value of the specific property
CREDITS to which such other credits relate. [Republic v.
Peralta, G.R. No. 56568 (1920)]
(1) Credits which enjoy preference with
respect to specific movables exclude all
others to the extent of the value of the D. EXEMPT PROPERTY
personal property to which the preference
refers [Art. 2246]. (1) Present property
(2) If there are two or more credits with (a) Family home [Arts. 152, 153 and 155]
respect to the same specific movable (b) Right to receive support, as well as
property, they shall be satisfied pro rata, money or property obtained by such
after the payment of duties, taxes and
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CIVIL LAW
LAND TITLES
AND DEEDS
A. GENERAL PRINCIPLES
ESTATE – An estate, strictly speaking,
Land Title – It is the evidence of the right of represents the nature, extent, degree, and
the owner or the extent of his interest, by quantity of a person’s interest in land.
which he can maintain control, and as a rule,
assert right to exclusive possession and
enjoyment of the property. [Peña, Types Of Estate:
Registration of Land Titles and Deeds, p. 3]
(1) Freehold Estate – Indicates title of
ownership
Title and Certificate of Title Distinguished (a) Fee Simple – An absolute title in
perpetuity; Title to land is conferred
upon a man and his heirs absolutely
Title Certificate of Title and without any limitation imposed
upon the estate
Lawful cause or It is a mere evidence (b) Fee Tail – One designed to pass title
ground of possessing of ownership; it is not from grantee to his heirs, in the intent
that which is ours. the title to the land of the grantor being to keep the
itself.2 property in the grantee’s line of issue
(c) Life Estate – One held for the
That which duration of the life of the grantee; In
constitutes a just some cases, it may terminate earlier
cause of exclusive as by forfeiture
possession, or which
is the foundation of (2) Less-than-Freehold Estate – Signifies
ownership of some sort of right short of title
property. (a) Estate for Years – In the nature of a
lease; grantee or lessee takes over
possession of the land for a period
The title is a conclusive evidence of ownership agreed upon but the grantor retains
and it cannot be attacked collaterally. the legal title to the property
(b) Tenancy from period to period – Also
DEED – A written instrument executed in in the nature of a lease which may run
accordance with law, wherein a person grants from month to month or from year to
or conveys to another certain land, tenements year, with the peculiarity of automatic
or hereditaments. renewal from time to time, unless
expressly terminated by either party
(c) Tenancy at will – Another form of
Elements Of A Deed: lease agreement where a person is
(a) Grantor permitted to occupy the land of
another without any stipulation as to
(b) Grantee period, but either party reserves the
(c) Words of Grant right to terminate the occupation at
will or at any time
(d) Description of the property involved
(e) Signature of the grantor
A.1. LAND REGISTRATION
A judicial or administrative proceeding
2
Castillo v. Escutin, G.R. No. 171056, March 13, 2009 whereby a person’s claim of ownership over a
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legality of the title, except claims which may (3) Patents – Whenever public land is by the
arise subsequent thereto. [Agcaoili, p. 9] Government alienated, granted or
conveyed to any person, the same shall
be brought forthwith under the
C. ADMINISTRATION OF THE TORRENS operation of this Decree [PD 1529, Sec.
SYSTEM 103, par. 1]
(1) Land Registration Authority (a) Patents only involve public lands
which are alienated by the
• The agency charged with the efficient Government pursuant to the Public
execution of the laws relative to the Land Act [CA 141, as amended]
registration of lands
(b) The patent (even if denominated as
• Under the executive supervision of the deed of conveyance) is not really a
DOJ conveyance but a contract between
• Consists of an Administrator assisted the grantee and the Government
by 2 Deputy Administrators and evidence of authority to the
Register of Deeds to make
(2) Register of Deeds registration.
• Constitutes a public repository of (c) The act of registration is the
records of instruments affecting operative act to affect and convey
registered or unregistered lands and the land.
chattel mortgages in the province or
Probative Value: A Torrens Certificate of Title
city wherein such office is situated
is valid and enforceable against the whole
• Headed by the Register of Deeds, world. It may be received in evidence in all
assisted by a Deputy courts of the Philippines, and shall be
conclusive as to all matters contained therein,
principally the identity of the owner of the
D. CERTIFICATE OF TITLE covered land thereby and identity of the land.
The Torrens Title – Certificate of ownership A Torrens title, once registered, cannot be
issued by the Register of Deeds naming and defeated, even by adverse, open and
declaring the owner of the real property notorious possession. A registered title under
described therein free from all liens and the Torrens system cannot be defeated by
encumbrances, except such as may be prescription. The title, once registered, is
expressly noted thereon or otherwise notice to the whole world. All persons must
reserved by law take notice. No one can plead ignorance of
the registration. [Egao v. CA, 1989]
(1) Original Certificate of Title (OCT) – It is
the first certificate of title issued in the
name of the registered owner by the E. EFFECT OF REGISTRATION UNDER
Register of Deeds covering a parcel of
land which had been registered under
THE TORRENS SYSTEM
the Torrens System, by virtue of judicial (1) Land is placed under the operation of the
or administrative proceedings Torrens system
(2) Transfer Certificate of Title (TCT) – The (2) Claims and liens of whatever character
subsequent certificate of title pursuant existing against the land prior to the
to any deed of transfer or conveyance to issuance of the certificate of title are cut
another person. The Register of Deeds off by such certificate and the certificate
shall make a new certificate of title and so issued binds the whole world,
give the registrant an owner’s duplicate including the government
certificate. The previous certificate shall
(a) It is an elemental rule that a decree of
be stamped “cancelled.”
registration bars all claims and rights
which arose or may have existed prior
The President may enter into agreements government and thereafter the Philippine
with foreign-owned corporations involving Republic
either technical or financial assistance for It does not negate native title to lands held in
large-scale exploration, development, and private ownership since time immemorial.
utilization of minerals, petroleum, and other [Cruz v. Sec. of Environment and Natural
mineral oils according to the general terms Resources]
and conditions provided by law, based on real
contributions to the economic growth and Native title recognizes ownership of land by
general welfare of the country. In such Filipinos independent of any grant from the
agreements, the State shall promote the Spanish crown on the basis of possession
development and use of local scientific and since time immemorial [cf: Cariño v. Insular
technical resources. Government] Lands embraced by native title
are presumed to have been held prior to the
The President shall notify the Congress of Spanish conquest and never to have been
every contract entered into in accordance public land.
with this provision, within thirty days from its
execution.
A. EFFECTS
The principle of State ownership of lands and (1) All lands of public domain belong to the
all other natural resources had its roots in the State, and that the State is the source of
1935 Constitution, which expressed the any asserted right to ownership in land
overwhelming sentiment in the Convention in and charged with the conservation of
favor of the principle of State ownership of such patrimony [Republic v. IAC, GR No.
natural resources and the adoption of the 71285]
Regalian doctrine as articulated in Sec. 1, Art
(2) Under the Regalian doctrine, all lands of
XIII.
whatever classification and other natural
The 1973 Constitution reiterated the Regalian resources not otherwise appearing to be
Doctrine in Sec. 8, Art. XIV. clearly within private ownership are
presumed to belong to the State which is
The present Constitution provides that,
the source of any asserted right to
except for agricultural lands of the public
ownership of land. [Repubic v. Remnan
domain which alone may be alienated, forest
Enterprises, Inc. G.R. No. 199310]
or timber, and mineral lands, as well as all
other natural resources must remain with the (3) The burden of proof in overcoming the
State, the exploration, development, and presumption of State ownership of the
utilization of which shall be subject to its full lands of the public domain is on the
control and supervision albeit allowing it to person applying for registration (or
enter into co-production, joint venture, or claiming ownership), who must prove
production-sharing agreements, or into that the land subject of the application is
agreements with foreign-owned corporations alienable or disposable. To overcome this
involving technical or financial assistance for presumption, incontrovertible evidence
large-scale exploration, development, and must be established that the land subject
utilization. [Secs. 2 and 3, Art. XII; La Bugal- of application (or claim) is alienable or
B’laan Tribal Association, Inc. v. Ramos] disposable. [Valiao v. Republic, G.R. No.
170757]
ownership of land by Filipinos by virtue of particularly the home ranges of ICCs/IPs who
possession under a claim of ownership since are still nomadic and/or shifting cultivators
time immemorial and independent of any
grant from the Spanish Crown [Agcaoili]
Certificate of Ancestral Domain Title (CADT)
Lands under native title are not part of public
refers to a title formally recognizing the rights
domain, “lands possessed by an occupant
of possession and ownership of ICCs/IPs over
and his predecessors since time immemorial,
their ancestral domains identified and
such possession would justify the
delineated in accordance with this law [Sec.
presumption that the land had never been
3(c), IPRA]
part of the public domain or that it had been
private property even before the Spanish
conquest [Republic v. CA, GR No. 130174]
Certificate of Ancestral Lands Title (CALT)
refers to a title formally recognizing the rights
of ICCs/IPs over their ancestral lands.
B.1. CERTIFICATE OF ANCESTRAL DOMAIN
TITLE Individually-owned ancestral lands, which are
agricultural in character and actually used for
A formal recognition, when solicited by
agricultural, residential, pasture, and tree
Indigenous Cultural Communities/
farming purposes, including those with a
Indigenous People (ICCs/IPs) concerned,
slope of eighteen percent (18%) or more, are
shall be embodied in a Certificate of
hereby classified as alienable and disposable
Ancestral Domain Title (CADT), which shall
agricultural lands [Sec. 12, IPRA]
recognize the title of the concerned ICCs/IPs
over the territories identified and delineated Native title, however, is a right of private
[Sec. 11, IPRA] ownership particularly granted to ICCs/IPs
over their ancestral lands and domains. The
IPRA categorically declares ancestral lands
B.2. ANCESTRAL DOMAINS and domains held by native title as never to
have been public land. [Cruz v. Sec. of
Refer to all areas generally belonging to
Environment and Natural Resources, 2000,
ICCs/IPs comprising lands, inland waters,
GR No. 135385]
coastal areas, and natural resources therein,
held under a claim of ownership, occupied or
possessed by ICCs/IPs, by themselves or
through their ancestors, communally or
individually since time immemorial,
continuously to the present except when
interrupted by war, force majeure or
displacement by force, deceit, stealth or as a
consequence of government projects or any
other voluntary dealings entered into by
government and private
individuals/corporations, and which are
necessary to ensure their economic, social
and cultural welfare.
It shall include ancestral lands, forests,
pasture, residential, agricultural, and other
lands individually owned whether alienable
and disposable or otherwise, hunting
grounds, burial grounds, worship areas,
bodies of water, mineral and other natural
resources, and lands which may no longer be
exclusively occupied by ICCs/IPs but from
which they traditionally had access to for
their subsistence and traditional activities,
Page 478 of 599
UP LAW BOC LAND TITLES AND DEEDS CIVIL LAW
Exceptions:
III. CITIZENSHIP
(1) Aliens by way of hereditary succession
REQUIREMENT [Sec. 7, Art. XII, 1987 Constitution]
[N.B. This is not included in the Bar Syllabus] (2) Natural born citizens who have lost their
citizenship:
For business use: limited to 5,000 sq. m.
A. INDIVIDUALS for urban land and 3 hectares for rural
land [RA No. 7042 as amended by RA No.
8179]
Art. XII, Sec. 3, 1987 Constitution provides, in
part: But where a Filipino citizen naturalized as
a citizen in a foreign country has
Lands of the public domain are classified into “reacquired” his Philippine citizenship
agricultural, forest or timber, mineral lands under the terms of RA 9225 (August 29,
and national parks. Agricultural lands of the 2003) otherwise known as the
public domain may be further classified by “Citizenship Retention and Re-
law according to the uses to which they may acquisition Act of 2003,” the area
be devoted. Alienable lands of the public limitations may no longer apply since the
domain shall be limited to agricultural lands. law expressly grants him the same right,
Private corporations or associations may not as any Filipino citizen, to “enjoy full civil
hold such alienable lands of the public and political rights” upon the re-
domain except by lease, for a period not acquisition of his Filipino citizenship
exceeding twenty-five years, renewable for [Agcaoili, p. 189].
not more than twenty-five years, and not to
exceed one thousand hectares in area. (3) Aliens, although disqualified to acquire
Citizens of the Philippines may lease not lands of public domain, may lease private
more than five hundred hectares, or acquire land for a reasonable period provided,
not more than twelve hectares thereof, by that such lease does not amount to a
purchase, homestead, or grant. virtual transfer of ownership. They may
also be given an option to buy property
on the condition that he is granted
A.1. THE KRIVENKO DOCTRINE Philippine citizenship. [Llantino v. Co
liong Chong, GR No. 29663]
The capacity to acquire private land is made
dependent upon the capacity to acquire or (4) Lands acquired by an American citizen
hold lands of public domain. Private land prior the proclamation of Philippine
may be transferred or conveyed only to Independence on July 4, 1946 but after
individuals or entities ‘qualified to acquire the passage of the 1935 Constitution may
lands of public domain’ [II Bernas] be registered, based on the ordinance
appended to the 1935 Constitution. [Moss
The 1935 Constitution reserved the right for v. Director of Lands, GR No. L-27170]
Filipino citizens or corporations at least sixty
percent of the capital of which was owned by (5) Land sold to an alien which is now in the
Filipinos. Aliens, whether individuals or hands of a naturalized citizen can no
corporations, have been disqualified from longer be annulled [De Castro v. Tan, GR
acquiring public lands; hence they have also No. L-31956]. The litigated property is
been disqualified from acquiring private now in the hands of a naturalized Filipino.
lands. [Krivenko v. Register of Deeds, GR No. It is no longer owned by a disqualified
L-630, 1947] vendee. The purpose of the prohibition
ceases to be applicable. [Barsobia v.
General Rule: Non-Filipinos cannot acquire or Cuenco, GR No. L-33048]
hold title to private lands of public domain,
except only by way of legal succession [Halili v.
CA, GR No. 113539, Sec. 2, 5 Art XII
Constitution]
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B. CORPORATIONS
IV. ORIGINAL
Private corporations may not hold alienable
lands of the public domain except by lease for REGISTRATION
a period not exceeding twenty-five years,
renewable for not more than twenty-five
years, and not to exceed one thousand ORIGINAL REGISTRATION - This is a
hectares in area. [1987 Constitution, Art. XII, proceeding brought before the land
Sec. 3] registration court to determine title or
ownership of land on the basis of an
application for registration or answer by a
Limitations to Ownership of Land by claimant in a cadastral registration.
Corporations:
A decree of registration merely confirms, but
(1) For private lands: does not confer ownership. [City Mayor of
Parañaque City v. Ebio, G.R. No. 178411,
• At least 60% Filipino [Sec. 2, Art. XII,
(2010)] Registration does not vest title or give
1987 Constitution; Agcaoili]
title to the land, but merely confirms and
• Restricted as to extent reasonably thereafter protects the title already
necessary to enable it to carry out the possessed by the owner, making it
purpose for which it was created imprescriptible by occupation of third parties.
The registration does not give the owner any
• If engaged in agriculture, it is better title than he has. He does not obtain
restricted to 1,024 hectares title by virtue of the certificate. He secures his
(2) For patrimonial property of the State [Sec. certificate by virtue of the fact that he has a
3, Art. XII, 1987 Constitution] fee simple title. [Legarda v. Saleeby, G.R. No.
L-8936, (1915)]
• Lease only for a limited period of
25 years
• Limited to 1,000 hectares Original Distinguished From Subsequent
General Rule: RTC of the province, city, or (3) The full names and addresses of all
municipality where the property is situated occupants of the land and those of
the adjoining owners, if known, and, if
The RTC shall have exclusive jurisdiction over
not known, it shall state the extent of
all applications original for registration of
the search to find them.
title, with power to hear and determine all
questions arising upon such applications or (4) Whether the property is conjugal,
petition. [Sec. 2, par. 2, P.D. No. 1529] paraphernal or exclusively owned by
the applicant.
Exception: Delegated jurisdiction to the MTC,
MeTC, and MCTC by the Supreme Court in (c) Documents to accompany the application
cadastral and land registration cases IF: [from Regulations in Ordinary Land
Registration Cases]
(1) There is no controversy over the land, OR
(1) Tracing-cloth plan duly approved by
(2) Its value is less than P100,000 [Sec. 34,
the Director of Lands, together with
BP 129]
two blueprint or photographic copies
thereof;
C. PROCEDURE IN ORDINARY LAND (2) Three copies of the corresponding
REGISTRATION technical descriptions;
(3) Three copies of the surveyor’s
certificate;
STEP 1: Survey of the land by the Bureau of
Lands or a duly registered private surveyor (4) All original muniments of title in the
possession of the applicant which
Note: No plan of such survey, whether it be prove his rights, to the title he prays
original or subdivision, may be admitted in for or to the land he claims; and
land registration proceedings until approved
by the Director of Lands [Sec. 1858, (5) Certificate in quadruplicate of the city
Administrative Code] or provincial treasurer of the assessed
value of the land, at its last
assessment for taxation, or, in the
STEP 2: Filing of application for registration absence thereof, that of the next
by the applicant; preceding year. However, in case the
land has not been assessed, the
(a) Form of the application application may be accompanied with
(1) In writing an affidavit in quadruplicate of the
fair market value of the land, signed
(2) Signed by the applicant/s or person by three disinterested persons.
duly authorized in his behalf
(d) Amendments to the Application
(3) Sworn before any officer authorized
to administer oath for the province or (1) Sec. 19, PD 1529 permits the
city where the application was applicants to amend the application
actually signed at any stage of the proceedings upon
such just and reasonable terms as the
(4) Application is presented in duplicate court may order;
(b) Contents of the application:
(2) However, Sec. 23, PD 1529 mandates
(1) A description of the land that there is a need to comply with
the required publication and notice as
(2) The citizenship and civil status of the
in an original application if the
applicant, whether single or married,
amendment is substantial as in:
and, if married, the name of the wife
or husband, and, if the marriage has (i) A change in the boundaries
been legally dissolved, when and how (ii) An increase in the area of the
the marriage relation terminated. It land applied for; or
shall also state:
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publication is concerned. [Benin v. Tuason, (3) The court may also cause notice to be
57 SCRA 531] served to such other persons and in
such manner as it may deem proper.
(c) Notice of application and initial hearing
STEP 6: Service of notice upon contiguous
by publication is sufficient and the mere
owners, occupants and those known to have
fact that a person purporting to have a
interest in the property by the Sheriff;
legitimate claim in the property did not
(a) Mailing: receive personal notice is not a sufficient
ground to invalidate the proceedings
(1) Within 7 days from publication, the
although he may ask for the review of the
CLR shall mail a copy of the notice
judgment or the reopening of the decree
(2) Copies of the notice shall be mailed of registration, if he was made the victim
to: of actual fraud. [Republic v. Abadilla, CA;
(i) Every person named in the notice G.R. No. 6902-R, Oct. 6, 1951]
whose address is known.
(ii) the Secretary of Public Highways, STEP 7: Filing of answer or opposition to the
to the Provincial Governor, and to application by any person whether named in
the Mayor of the municipality or the notice or not;
city, in which the land lies, if the
(a) Who may file? Any person claiming an
applicant requests to have the
interest, whether named in the notice or
line of a public way or road
not
determined
(b) When to file? On or before the date of
(iii) Secretary of Agrarian Reform, the
initial hearing, or within such further time
Solicitor General, the Director of
as may be allowed by the court.
Lands, the Director of Mines
and/or the Director of Fisheries (c) What shall it contain? It shall state all the
and Aquatic Resources, (as objections and the interest claimed by the
appropriate) if the land borders party the remedy desired.
on a river, navigable stream or
(d) How shall it be made? It shall be signed
shore, or on an arm of the sea
and sworn to by him or by some other
where a river or harbor line has
duly authorized person. Sec. 25, PD 1529
been established, or on a lake, or
provides for the requisites of an
if it otherwise appears from the
opposition:
application or the proceedings
that a tenant-farmer or the (1) It shall set forth “all the objections to
national government may have a the application” and
claim adverse to that of the
(2) It shall state the “interest claimed by
applicant
the party filing the same”
(b) Posting:
(e) Effect of Failure to Answer:
(1) CLR shall cause the sheriff or his
(1) If no one appears/files an answer,
deputy to post the notice at least 14
upon motion, the court shall order a
days before the hearing:
default to be recorded.
(2) In a conspicuous place on each parcel
(2) By the description in the notice "To all
of land included in the application
Whom It May Concern", all the world
and in a conspicuous place on the
are made parties defendant and shall
bulletin board of the municipal
be concluded by the default order.
building of the municipality or city in
which the land or portion thereof is (3) Where an appearance has been
situated. entered and an answer filed, a default
order shall be entered against
persons who did not appear and (i) Adopt the same
answer.
(ii) Set aside the report
(4) Absence of opposition does not justify
(iii) Modify the report
outright registration. [Director of
Lands vs. Agustin, 1921] (iv) Refer back or recommit the
case to the referee for
(f) Effects of Default:
presentation of evidence
(1) With respect to the Applicant – he
has the right to present or adduce
evidence ex parte STEP 9: Promulgation of judgment by the
Court;
(2) With respect to those covered by the
default order – they have no legal (a) This is the adjudication, determination,
standing in court; therefore, they are and resolution of the issue of ownership
no longer allowed to participate and
(b) Forms of Judgment:
no opportunity to present evidence
(1) Dismissal of the application – with
(g) For relief from an order of default, see Sec.
prejudice or without prejudice
3, Rule 18, Rules of Court
(2) Partial Judgment – in a case where
only a portion of the land subject of
STEP 8: Hearing of the case by the court registration is contested, the court
may render partial judgment
(a) Applicable procedural law:
provided that a subdivision plan
(1) Reception of evidence is governed by showing the contested and
PD 1529 uncontested portions approved by the
Director of Land is previously
(2) Rules of Court shall, insofar as not
submitted to said court. [Sec. 28, PD
inconsistent with the provisions of the
1529]
Decree, be applicable to land
registration and cadastral cases by (3) Judgment Confirming Title -
analogy or in a suppletory character Judgment may be rendered
and whenever practicable and confirming the title of the applicant,
convenient [Sec. 34, PD 1529] or the oppositor as the case may be,
to the land or portions thereof upon
(b) Sec. 27, PD 1529: Court may either:
finding that the party concerned has
(1) Hear the parties and their evidence, sufficient title proper for registration.
or [Sec. 29, PD 1529]
(2) Refer the case or any part thereof to a (c) Finality of Judgment - Sec. 30, par. 1, PD
referee 1529 provides that the judgment becomes
final upon the expiration of 30 days
(a) Referee shall hear the parties,
counted from receipt of notice of
receive their evidence, and submit
his report thereon to the Court judgment.
within 15 days after termination Note: This has been MODIFIED to the
of such hearing lapse of 15 days counted from receipt of
notice of judgment as per Sec. 39, BP 129
(b) Hearing before a referee may be
held at any convenient place
within the province or city as may
STEP 10: Issuance of the decree
be fixed by him and after
reasonable notice thereof shall (a) If the court finds after hearing that the
have been served to the parties applicant or adverse claimant has title as
concerned stated in his application or adverse claim
and proper for registration, a decree of
(c) Upon receipt of the report the
Court may:
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UP LAW BOC LAND TITLES AND DEEDS CIVIL LAW
confirmation and registration shall be (5) Set forth the estate of the owner, and
entered also, in such manner as to show their
relative priority, all particular estates,
(b) The Court declares the decision final and
mortgages, easements, liens,
instructs the LRA to issue a decree of
attachments and other
confirmation and registration within 15
encumbrances, including rights of
days from entry of judgment
tenant-farmer, if any, to which the
Note: It is not the court that issues the land or owner’s estate is subject,
decree, but the LRA
(6) Contain any other matter properly to
(c) One year after issuance of the decree, it be determined
becomes incontrovertible and
amendments of the same will not be
allowed except in cases of clerical errors STEP 12: Sending of copy of the decree of
registration to the corresponding Register of
(1) Court retains jurisdiction over the
Deeds (Registrar of Land Titles and Deeds)
case until after the expiration of 1 year
from the issuance of the decree of
registration. [Gomez v. CA, 1988]
STEP 13: Transcription of the decree of
(2) Note: While a decision in land registration
registration proceeding becomes final
(a) It is transcribed in the registration book of
after the expiration of thirty days from
the Registrar of Land Titles and Deeds
the date of service of its notice, the
decree of registration does not (b) Registrar issues owner’s duplicate OCT of
become final until after the lapse of the applicant by the Registrar of Land
one year from the date of its issuance Titles and Deeds, upon payment of the
and entry. prescribed fees.
Process of Registration for Dealings less than filed with the Register of Deeds for
Ownership annotation in the TCT.
(1) Filing of the instrument with the Register (3) Register of Deeds shall issue a TCT
of Deeds and cancel the grantor's certificate
partially OR it may be cancelled
(2) A brief memorandum thereof is made:
totally and a new one issued
(a) On the certificate of title by the describing therein the remaining
Register of Deeds and signed by him, portion
and
(c) If there are SUBSISTING encumbrances
(b) On the owner’s duplicate and annotations:
Cancellation or extinguishment of such • They shall be carried over in the new
interests shall be registered in the same certificate or certificates; except when
manner. they have been simultaneously
discharged.
(2) No evidence is submitted to show that he Adverse claim is not ipso facto cancelled after
has present or possible future interest in 30 days, hearing is necessary. [Sajonas v. CA,
land G.R. No. 102377 (1996)]
(1) Before final judgment – court may order It is a proceeding in rem, initiated by the filing
cancellation after showing that notice is of a petition for registration by the
only for the purpose of molesting an government, not by the persons claiming
adverse party or it is not necessary to ownership of the land subject thereof, and
protect the rights of the party who caused the latter are, on the pain of losing their claim
it to be registered thereto, in effect compelled to go to court to
make known their claim or interest therein,
(2) Register of Deeds may also cancel upon and to substantiate such claim or interest.
verified petition of the party who caused
such registration Unlike other kinds of registration, this is
compulsory as it is initiated by the
(3) Deemed cancelled when certificate of government.
clerk of court stating manner of disposal
of proceeding is registered The government does not seek the
registration of land in its name. The objective
of the proceeding is the adjudication of title
to the lands or lots involved in said
proceeding.
(b) Tracing cloth plan and blue print (3) Petition for Review of Decree of
copies of plan Registration
(3) Possession and occupation of the land for (7) Action for Damages
the length of time and in the manner (8) Action for Compensation from the
required by law Assurance Fund
(9) Reversion
from the judgment of the court as in ordinary (2) The fraud must consist in an
civil cases. intentional omission of fact
required by law to be stated in
• Period in Sec. 30, PD 1529 has been the application or a wilful
modified to 15 days as per Sec. 39, BP 129 statement of a claim against the
truth
Unlike ordinary civil actions, the adjudication (d) Requisites for Petition to Reopen or
of land in a cadastral or land registration Review
proceeding does not become final in the (1) The petitioner must have an estate or
sense of incontrovertibility until after the interest in the land;
expiration of one (1) year after the entry of the
final decree of registration. As long as a final (2) He must show actual fraud in the
decree has not been entered by the LRA and procurement of the decree of
the period of 1 year has not elapsed from date registration;
of such decree, the title is not finally (3) That the action is filed within one year
adjudicated and the decision in the from the issuance and entry of the
registration proceeding continues to be under decree of registration; and
the control and sound discretion of the court
rendering it. [Gomez v. CA, 168 SCRA 503, (4) That the property has not been
(1988)] transferred to an innocent purchaser
for value; and [Agcaoili citing
Walstrom v. Mapa, G.R. No. 38387]
B. PETITION TO REOPEN OR REVIEW
DECREE OF REGISTRATION – SEC. 32,
PD 1529 C. ACTION FOR RECONVEYANCE:
(a) To whom available: Only to an aggrieved (a) When to file:
party who has been deprived of land or (1) Before issuance of decree, or
any estate or interest therein by decree of within/after 1 year from entry
registration
(2) If based on implied trust, 10 years;
(b) When to file: Any time after the rendition
of the court’s decision and before the (3) If based on express trust and void
expiration of 1 year from entry of decree of contract, or if the plaintiff is in
registration possession of the land,
imprescriptible
(1) Upon expiration of the 1 year
period, every decree becomes (4) If based on fraud, 4 years from the
incontrovertible discovery
(2) The Court held that the petition (b) It does not reopen proceedings but a
may be filed at any time after mere transfer of the land from registered
rendition of the court’s decision owner to the rightful owner [Esconde v.
(no need to wait for actual entry Barlongay, 1987]
in the LRA) and before expiration (c) Requisites:
of one year from entry of the final
decree of registration. [Rivera v. (1) The action must be brought in the
Moran, 48 Phil. 836; Director of name of a person claiming ownership
Lands v. Aba, et al., 68 Phil. 85.] or dominical right over the land
registered in the name of the
(c) Sole and ONLY Ground: Actual Fraud defendant;
(1) Actual fraud proceeds from an (2) The registration of the land in the
intentional deception practiced name of the defendant was procured
by means of misrepresentation or through fraud or other illegal means;
concealment of material fact
(3) The property has not yet passed to an (1) That a person sustains loss or
innocent purchaser for value; and damage, or is deprived of any estate
or interest in land;
(4) The action is filed after the certificate
of title had already become final and (2) On account of the bringing of land
incontrovertible but within 4 years under the operation of the Torrens
from the discovery of the fraud System arising after original
[Balbin v. Medalla, G.R. No. L-46410] registration;
or not later than 10 years in the case
(3) Through fraud, error, omission,
of an implied trust [New Regent
mistake or misdescription in a
Sources, Inc. v. Tanjuatco, G.R. No.
certificate of title or entry or
168800]
memorandum in the registration
book;
D. QUIETING OF TITLE – REMEDY FOR (4) Without negligence on his part; and
THE REMOVAL OF ANY CLOUD OF (5) Is barred or precluded from bringing
DOUBT OR UNCERTAINTY WITH an action for the recovery of such land
RESPECT TO REAL PROPERTY or estate or interest therein. [Agcaoili,
(a) Who may file: See Sec. 1, Rule 63, ROC p. 619]
(b) Requisites:
(1) Plaintiff or complainant has a legal or H. REVERSION
an equitable title to or interest in the Instituted by the government, thru the
real property subject of the action; Solicitor General in all cases where lands of
and public domain are held in violation of the
(2) The deed, claim, encumbrance or Constitution or were fraudulently conveyed.
proceeding claimed to be casting a Indefeasibility of title, prescription, laches,
cloud on his title must be shown to be and estoppel do not bar reversion suits.
in fact invalid or inoperative despite
its prima facie appearance of validity
or legal efficacy.
E. CANCELLATION OF TITLE
It is initiated by a private party usually in a
case where there are two titles issued to
different persons for the same lot. [Agcaoili,
2015]
(3) Court will order issuance of new title (d) Reconstitution of Certificate of title
after due notice and hearing, with (1) The restoration of the instrument
memorandum that it is issued in which is supposed to have been lost
place of a lost certificate or destroyed in its original form and
(b) Petition seeking surrender of duplicate condition, under the custody of the
title Register of Deeds
(1) In voluntary and involuntary (2) To have the same reproduced after
conveyances; when the duplicate proper proceedings in the same form
cannot be produced, the party must they were when the loss or
petition the court to compel destruction occurred [Heirs of Pedro
surrender of duplicate certificate of Pinote v. Dulay, 1990]
title to Register of Deeds (3) Kinds:
(2) After hearing, court may order (i) Judicial
issuance of a new certificate and
annul the old certificate (1) A petition is filed before the
RTC
(c) Amendment and alteration of certificate
of title (2) Petition is published in the
Official Gazette for 2
(1) A certificate of title cannot be altered consecutive issues and
or amended except in a direct posted on main entrance of
proceeding in court which is summary municipality for at least 30
in nature days before hearing
(2) No amendment or alteration of (3) Hearing is then conducted
decree is permitted except upon order
of the court (4) Court may then order
reconstitution if meritorious
(3) No time limit to file petition
(ii) Administrative, which may be
(4) Grounds: availed only in case of:
(1) Substantial loss or
destruction of original land
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Process of Registration
(1) Registration is by way of annotation
(2) The instrument dealing with unregistered
land is presented before the Register of
Deeds
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validly adjudge the registration of title the State which is not bound by any
thereof in favor of a private applicant. [Peña, prescriptive period provided by the
p. 105] Statute of Limitation. [Pena citing
Martinez v. CA, GR No. L-31271
(14) Thus, where it has so been adjudged, the
river not being capable of private
appropriation or acquisition by
prescription, the title thereto may be
attacked, either directly or collaterally by
CIVIL LAW
TORTS
A quasi-delict is a separate source of obligation When the source of the obligation upon which
under Article 1157. the plaintiff’s cause of action depends is a
negligent act or omission, the burden of proof
rests upon the plaintiff to prove the negligence—
Art. 2177. Responsibility for fault or negligence
if he does not his action fails. But when the facts
under the preceding article is entirely separate averred show a contractual undertaking by
and distinct from the civil liability arising from defendant for the benefit of the plaintiff, and it is
negligence under the Penal Code. But the alleged that the plaintiff has failed or refused to
plaintiff cannot recover damages twice for the perform the contract, it is not necessary for the
same act or omission of the defendant. plaintiff to specify in his pleadings whether the
breach of the contract is due to willful fault or to
negligence on the part of the defendant, or of his
RPC, Art. 100. Every person criminally liable servants or agents. Proof of the contract and of
for a felony is also civilly liable. its nonperformance is sufficient prima facie to
warrant a recovery. [Cangco v. Manila Railroad,
A quasi-delict or culpa aquiliana is a separate supra]
legal institution under the Civil Code, with a
substantivity all its own, and individuality that is D.3. AS TO APPLICABILITY OF THE DOCTRINE
OF PROXIMATE CAUSE
entirely apart and independent from a delict or
crime. However, the same negligent act causing The doctrine of proximate cause [to establish the
damage may produce civil liability arising from a fault or negligence of the defendant] is
applicable only in actions for quasi-delict, not in
crime under Article 100 of the Revised Penal
actions involving breach of contract [Calalas v.
Code, or create an action for quasi-delict CA, G.R. No. 122039 (2000)].
[Barredo v Garcia, G.R. No. 48006 (1942)]
D.4. AS TO THE DEFENSE OF AN EMPLOYER
An act or omission causing damage to another FOR THE NEGLIGENCE OF AN EMPLOYEE
may give rise to two separate civil liabilities on As it is not necessary for the plaintiff in an action
the part of the offender—for civil liability ex for breach of contract to show that the breach
delicto, and independent civil liabilities. The was due to the negligent conduct of the
choice is with the plaintiff who makes known his defendant or his servants, proof on the part of
cause of action in his initiatory pleading or the defendant that the negligence or omission of
complaint [LG Foods v Philadelfa, G.R. No. his servants or agents caused the breach of
158995 (2006)] contract would not constitute a defense to the
action [Cangco v. Manila Railroad, supra].
D. CULPA AQUILIANA DISTINGUISHED
FROM CULPA CONTRACTUAL; PRESENCE Presence of Contactual Relations
OF CONTRACTUAL RELATIONS The Supreme Court held there may instances
where there can be a quasi-delict even when
D.1. AS TO SOURCE there is a contract between the parties. The test
In culpa aquiliana or non-contractual obligation, (whether a quasi-delict can be deemed to
it is the wrongful or negligent act or omission underlie the breach of a contract) can be stated
itself which creates the vinculum juris, whereas thusly: Where, without a pre-existing contract
in contractual relations, the vinculum exists between two parties, an act or omission can
independently of the breach of voluntary duty nonetheless amount to an actionable tort by
assumed by the parties when entering into the
itself, the fact that the parties are contractually
contractual relation [Cangco v. Manila Railroad,
supra]. bound is no bar to the application of quasi-delict
provisions to the case [Far East v. CA, G.R. No.
D.2. AS TO BURDEN OF PROOF 108164 (1995)].
This fiduciary relationship means that the The profession of pharmacy, it has been said
bank’s obligation to observe high standards again and again, is one demanding care and
of integrity and performance is deemed skill. Even under the first conservative
written into every deposit agreement expression, "ordinary care" with reference to
between a bank and its depositor. The the business of a druggist…must be held to
fiduciary nature of banking requires banks to signify "the highest practicable degree of
assume a degree of diligence higher than prudence, thoughtfulness, and vigilance,
that of a good father of a family and most exact and reliable safeguards
[Consolidated Bank v CA, G.R. No. 138569 consistent with the reasonable conduct of
(2003)]. the business in order that human life may
not constantly be exposed to the danger
(3) Experts (In General) flowing from the substitution of deadly
Those who undertake any work calling for poisons for harmless medicine. [US v Pineda,
special skills are required not only to G.R. No. L-12858 (1918)]”
exercise reasonable care in what they do but
also possess a standard minimum of special Mistake is negligence and care is no defense
knowledge and ability. In all employments [Mercury Drug v De Leon, G.R. No. 165622
where peculiar skill is requisite, one who (2008)].
offers his services is understood as holding
himself out to the public as possessing the (6) Possessor of Extremely Dangerous
degree of skill commonly possessed by
Instrumentalities
others in the same employment [Far Eastern
Shipping, G.R. No. 130068 (1998)]. [A] higher degree of care is required of
someone who has in his possession or under
When a person holds himself out as being his control an instrumentality extremely
competent to do things requiring dangerous in character, such as dangerous
professional skill, he will be held liable for weapons or substances. Such person in
negligence if he fails to exhibit the care and possession or control of dangerous
skill of one ordinarily skilled in the particular instrumentalities has the duty to take
work which he attempts to do [Culion v exceptional precautions to prevent any injury
Philippine Motors, G.R. No 32611 (1930)]. being done thereby. Unlike the ordinary
affairs of life or business which involve little
(4) Doctors or no risk, a business dealing with
dangerous weapons requires the exercise of
Whether or not a physician has committed a higher degree of care [Pacis v Morales, G.R.
an ‘inexcusable lack of precaution’ in the No. 169467 (2010)].
treatment of his patient is to be determined
according to the standard of care observed (7) Children
by other members of the profession in good The conduct of an infant of tender years is
standing under similar circumstances not to be judged by the same rule, which
bearing in mind the advanced state of the governs that of an adult. …The care and
caution required of a child is according to his
profession at the time of treatment of
maturity and capacity only, and this is to be
present state of medical science. It is in this determined in each case by the
aspect of medical malpractice that expert circumstances of the case [Taylor v Manila
testimony is essential to establish not only Railroad, G.R. No. 4977 (1910)].
the standard of care of the profession but
also that the physician’s conduct in the No contributory negligence can be imputed
treatment and care falls below such to children below 9 years old [Jarco
Marketing v CA, G.R. No. 129792 (1999)].
standard [Cruz v CA, GR. No. 122445 (1997)]
The degree of care required to be exercised
(5) Pharmacists must vary with the capacity of the person
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endangered to care for himself. …The in causing damage, the law presumes the
standard of conduct to which a child must vehicle owner equally negligent and imposes
conform for his own protection is that degree upon the latter the burden of proving proper
of care ordinarily exercised by children of the selection and supervision of employee as a
same age, capacity, discretion, knowledge defense.
and experience under the same or similar
circumstances [Ylarde v Aquino, G.R. No. L- As held in Vargas v. Langcay [G.R. No. 17459
33722 (1988)]. (1962)], “the registered owner/operator of a
passenger vehicle is jointly and severally liable
A.3. PRESUMPTIONS OF NEGLIGENCE with the driver for damages incurred by
passengers or third persons as a consequence of
i. IN MOTOR VEHICLE MISHAPS
injuries or death sustained in the operation of
(1) Liability of the owner said vehicles. Regardless of who the actual
owner of a vehicle is, the operator of record
Art. 2184. In motor vehicle mishaps, the owner is continues to be the operator of the vehicle as
solidarily liable with his driver, if the former, who regards the public and third persons and as such
was in the vehicle, could have, by the use of the is directly and primarily responsible for the
due diligence, prevented the misfortune. xxx consequences incident to its operation, so that
If the owner was not in the motor vehicle, the in contemplation of law, such owner/operator of
provisions of article 2180 are applicable. record is the employer of the driver, the actual
operator and employer being considered merely
as his agent.”
Art. 2186. Every owner of a motor vehicle
shall file with the proper government office a The registered owner of a motor vehicle is
bond executed by a government-controlled primarily liable for the damage or injury caused
corporation or office, to answer for damages to another, but he has a right to be indemnified
to third persons. The amount of the bond and by the real owner of the amount he was required
other terms shall be fixed by the competent to pay. This rule applies both to private and to
common carriers with respect to their
public official. passengers [Tamayo v Aquino, G.R. No. L-12634
(1959)].
“Owner” shall mean the actual legal owner of
the motor vehicle, in whose name such vehicle is The law does not require that a person must
duly registered with the LTO. Registration of possess a certain measure of skill or proficiency
motor vehicles is required not because it is the either in the mechanics of driving or in the
operative act which transfers ownership in observance of traffic rules before he may own a
vehicles, but because it is the means by which motor vehicle. The test of his negligence, within
the owner can be identified so that if any the meaning of Article 2184, is his omission to do
accident occurs, or damage or injury is caused in that which the evidence of his own senses tells
the operation of the vehicle, responsibility can him he should do in order to avoid the accident.
be fixed. And as far as perception is concerned, absent a
minimum level imposed by law, a maneuver that
The owner is solidarily liable with the driver for appears to be fraught with danger to one
motor vehicle mishaps when: passenger may appear to be entirely safe and
(a) The owner was IN the vehicle at the time, commonplace to another. Were the law to
AND require a uniform standard of perceptiveness,
(b) The owner could have, by the use of due employment of professional drivers by car
diligence, prevented the misfortune. owners who, by their very inadequacies, have
real need of drivers' services, would be
Note: If the owner was NOT inside the vehicle,
effectively proscribed [Caedo v Yu Khe Tai, G.R.
Art. 2180 applies. No. L-20392 (1968)].
The presumption is against the owner of the The owner of the motor vehicle is not liable for
motor vehicle. He has the burden of proving due the misfortune unless the negligent acts of the
diligence. Thus, once a driver is proven negligent
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driver are continued for such a length of time as possession of dangerous weapons or
to give the owner a reasonable opportunity to substances, such as firearms and poison, except
observe them and to direct his driver to desist when the use or possession thereof is
therefrom. The act complained of must be indispensable in his occupation or business.
continued in the presence of the owner for such
a length of time that the owner, by his iii. COMMON CARRIERS
acquiescence, makes his driver’s act his own
[Chapman v Underwood, G.R. No. L-9010 (1914)]. Art. 1735. In all cases other than those
mentioned in Nos. 1, 2, 3, 4, and 5 of the
(2) Liability of the driver preceding article (calamity, act of public enemy
in war, act of owner of the goods, character of
Art. 2184. xxx It is disputably presumed that a the goods, order of competent public authority),
driver was negligent, if he had been found guilty if the goods are lost destroyed or deteriorated,
of reckless driving or violating traffic regulations
common carriers are presumed to have been at
at least twice within the next preceding two
months. fault or to have acted negligently, unless they
prove that they observed extraordinary diligence
Art. 2185. Unless there is proof to the as required under Art. 1733.
contrary, it is presumed that a person driving
a motor vehicle has been negligent if at the Art. 1752. Even when there is an agreement
time of the mishap, he was violating any limiting the liability of the common carrier in
traffic regulation. the vigilance over the goods, the common
carrier is disputably presumed to have been
Article 2184 establishes a presumption of negligent in case of their loss, destruction or
negligence on the part of the driver based on deterioration.
previous violations of traffic regulations. Article
2185 establishes a presumption of negligence on iv. RES IPSA LOQUITUR
the basis of simultaneous violations.
The doctrine of res ipsa loquitur (“the thing or
Despite the presumption of negligence arising the transaction speaks for itself”) is a rule of
from the traffic regulation violation, the claimant evidence (not of substantive law) peculiar to the
must still prove that such negligence was the law of negligence. The doctrine treats the injury
proximate cause in order to successfully claim itself as proof of negligence.
for damages [Sanitary Steam v CA, G.R. No.
Elements: [Ramos v. CA, G.R. No. 124354 (1999)]
119092 (1998)]. (a) The accident is of a kind which ordinarily
does not occur in the absence of someone’s
Article 2185 was not formulated to compel or negligence;
ensure obeisance by all to traffic rules and (b) It is caused by an instrumentality within the
regulations. It does not apply to non-motorized exclusive control of the defendant or
vehicles, in recognition of the unequal footing of defendants; and
standards applicable to motor vehicles as (c) The possibility of contributing conduct,
opposed to other types of vehicles [Añonuevo v. which would make the plaintiff responsible,
CA, supra]. is eliminated.
(1) Those suffering the penalty of civil preceding articles shall be governed by the
interdiction, provisions of the Civil Code on quasi-delicts.
(2) Prodigals,
(3) Deaf and dumb who are unable to read and Under Article 2180, the teacher is liable for the
acts or omissions of the pupils and students, and
write
so is the head of establishment of arts and
(4) Unsound mind, even though they have lucid trades for the apprentices, so long as they
intervals remain in custody, regardless of age. Under the
(5) Being of sound mind, but by reason of age, Family Code, liability attaches to the school, its
disease, weak mind, and other similar administrators and teachers, or the individual or
causes, cannot take care of themselves or entity engaged in child care, so long as the child
manage their property is under their supervision, instruction, or custody,
and the child is below 18 years old.
Liability of minor or insane tortfeasor without a Basis of liability of teachers and heads of
parent or guardian establishments of arts and trades
He shall be answerable with his own property in They stand, to a certain extent, in loco parentis
an action against him where a guardian ad litem and are called upon to exercise reasonable
shall be appointed. [Art. 2182] supervision over the conduct of the child.
(b) Teachers and schools
“Custody” means the protective and supervisory
Art. 2180 (7). Lastly, teachers or heads of
establishments of arts and trades shall be liable custody that the school, its head and teachers
for damages caused by their pupils and students exercise over the pupils, for as long as they are in
or apprentices, so long as they remain in their attendance in school, which includes recess time
custody. [Palisoc v. Brillantes, G.R. No. L-29025 (1971)].
FC, Art. 218. The school, its administrators As long as it is shown that the student is in the
and teachers, or the individual, entity or school premises pursuant to a legitimate
institution engaged in child are shall have
student objective, in the exercise of a legitimate
special parental authority and responsibility
over the minor child while under their right, or the enjoyment of a legitimate student
supervision, instruction or custody. privilege, the responsibility of the school
authorities over the student continues [Amadora
Authority and responsibility shall apply to all v CA, G.R. No. L-47745 (1988)].
authorized activities whether inside or
outside the premises of the school, entity or (c) Owners/managers of
institution. establishments/employers
Art. 2180 (4). The owners and managers of an
FC, Art. 219. Those given the authority and establishment or enterprise are likewise
responsibility under the preceding Article responsible for damages caused by their
shall be principally and solidarily liable for employees in the service of the branches in
damages caused by the acts or omissions of which the latter are employed or on the occasion
the unemancipated minor. The parents, of their functions.
judicial guardians or the persons exercising
substitute parental authority over said minor Art. 2180 (5). Employers shall be liable for the
shall be subsidiarily liable. damages caused by their employees and
household helpers acting within the scope of
The respective liabilities of those referred to their assigned tasks, even though the former
in the preceding paragraph shall not apply if are not engaged in any business or industry.
it is proved that they exercised the proper
diligence required under the particular “Owners and managers of an establishment or
circumstances. enterprise” does not include a manager of a
corporation. (Spanish term “directores” connotes
All other cases not covered by this and the
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“employer.” But manager of a corporation is not DISTINCTION BETWEEN THE 4TH AND 5TH PARAGRAPHS
an employer, but rather merely an employee of OF ART. 2180
the owner.) [Philippine Rabbit v. Philam A distinction must be made between the two
Forwarders, G.R. No. L-25142 (1975)].
provisions to determine what is applicable. Both
The liability imposed upon employers with provisions apply to employers: the fourth
respect to damages occasioned by the paragraph, to owners and managers of an
negligence of their employees to whom they are establishment or enterprise; and the fifth
not bound by contract is based on the paragraph, to employers in general, whether or
employer’s own negligence, such as when he not engaged in any business or industry. The
places a powerful automobile in the hands of a fourth paragraph covers negligent acts of
servant whom he knows to be ignorant of the
employees committed either in the service of the
method of managing such vehicle [Cangco v.
Manila Railroad, supra]. branches or on the occasion of their functions,
while the fifth paragraph encompasses
This Court still employs the "control test" to negligent acts of employees acting within the
determine the existence of an employer- scope of their assigned task. The latter is an
employee relationship between hospital and expansion of the former in both employer
doctor. Under the "control test", an employment coverage and acts included. Negligent acts of
relationship exists between a physician and a
hospital if the hospital controls both the means employees, whether or not the employer is
and the details of the process by which the engaged in a business or industry, are covered
physician is to accomplish his task. The Court so long as they were acting within the scope of
earlier ruled that there was employer-employee their assigned task, even though committed
relationship between the doctor and employee neither in the service of the branches nor on the
but reversed itself upon motion for occasion of their functions. For, admittedly,
reconsideration. They still held the hospital
employees oftentimes wear different hats. They
liable on the basis of agency and corporate
responsibility [Professional Services v. CA and perform functions which are beyond their office,
Agana, G.R. No. 126297 (2010)]. title or designation but which, nevertheless, are
still within the call of duty [Castilex Industrial
“Within the scope of their assigned task” in Art. Corp. v. Vasquez, G.R. No. (1999)].
2180 includes any act done by an employee in
furtherance of the interests, or for the account of DEFENSE OF DILIGENCE IN SELECTION AND
the employer at the time of the infliction of the SUPERVISION
injury or damage [Filamer v CA, G.R. No. 75112 Due diligence in the supervision of employees
(1990)]. includes the formulation of suitable rules and
regulations for the guidance of employees and
Basis of liability the issuance of proper instructions intended for
Employer’s negligence in the protection of the public and persons with
(1) The selection of their employees (culpa in whom the employer has relations through his or
eligiendo) her employees and the imposition of necessary
(2) The supervision over their employees (culpa disciplinary measures upon employees in case of
in vigilando) breach or as may be warranted to ensure
performance of acts as indispensable to the
Presumption of Negligence
The presentation of proof of the negligence of its business of and beneficial to their employee
employee gives rise to the presumption that the [Metro Manila Transit v. CA, G.R. No. 104408
defendant employer did not exercise the (1993)].
diligence of a good father of a family in the
selection and supervision of its employees Due diligence in the selection of employees
[Lampesa v. De Vera, G.R. No. 155111 (2008)]. require that the employer carefully examined the
applicant for employment as to his qualifications, (1) Art. 2180 (6) is an example of an express
his experience and record of service. legislative consent. Here, the State assumes
a limited liability for the acts of its special
agents.
Criminal Negligence (2) Art. 2189 provides for state liability for
The vicarious liability of the employer for damages caused by defective condition of
criminal negligence of his employee is governed public works.
by RPC 103. Conviction of the employee (3) Local Government Code provides for the
conclusively binds the employer. Defense of due liability of local government units for
diligence in the selection and supervision of the wrongful exercise of its proprietary (as
employee is not available. The employer cannot opposed to its governmental) functions. The
appeal the conviction [Fernando v. Franco latter is the same as that of a private
(1971)]. corporation or individual. [Mendoza v. De
Leon (1916)]
Note: The liability of the employer under Art. 103
RPC is subsidiary. A special agent is one who receives a definite
and fixed order or commission, foreign to the
Registered Owner Rule exercise of the duties of his office if he is a
The registered owner of the vehicle is primarily special official. This concept does not apply to
responsible to the public for whatever damage any executive agent who is an employee of the
or injury the vehicle may have caused, even if he active administration and who on his own
had already sold the same to someone else. The responsibility performs the functions which are
policy is the easy identification of the owner who inherent in and naturally pertain to his office
can be held responsible so as not to [Merritt v. Government of the Philippine Islands,
inconvenience or prejudice the third party G.R. No. 11154 (1960)].
injured [Cadiente v. Macas (2008)]. The
registered owner, however, has the right to be A corporate body performing non-governmental
indemnified by the real or actual owner of the functions becomes liable for the damage caused
by the accident resulting from the tortious act of
amount that he may be required to pay as
its driver-employee. Such corporate body
damages for the injury caused to the plaintiff assumes the responsibility of an ordinary
[Orix Metro Leasing v. Mangalinan (2012)]. This employer and as such, becomes answerable for
rule applies even if the vehicle is leased to third damages [Fontanilla v. Maliaman, G.R. No.
persons. The liability of the registered owner is 55963 (1991)].
subject to his right of recourse against the
transferee or buyer. (2) Joint tortfeasors
Art. 2194. The responsibility of two or more
(d) The State persons who are liable for quasi-delict is
1987 Constitution, Art. XVI, Sec. 3. The State solidary.
may not be sued without its consent.
Definition of “Joint Tortfeasors”
Art. 2180 (3). The State is responsible in like They are all persons who command, instigate,
manner when it acts through a special agent; promote, encourage, advise, countenance,
but not when the damage has been caused cooperate in, aid or abet in the commission of a
by the official to whom the task done tort, or who approve of it after it is done, if done
properly pertains, in which case what is for their benefit [Filipinas Broadcasting Network v.
provided in Article 2176 shall be applicable. AMEC-BCCM, G.R. No. 141994 (2005)].
Instances where the State gives its consent to be Applicability of the provision
sued The provision applies when there are 2 or more
persons who have participated in the
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commission of a single quasi-delict. The injury injury to some person might probably result
must be indivisible. therefrom [Bataclan v. Medina, supra].
(2) Remote Cause – a cause which would have motion the chain of circumstances leading
been a proximate cause, had there been no to the injury. [Bataclan v. Medina, supra]
efficient intervening cause after it and prior
to the injury. (2) Sufficient link
The Supreme Court has adopted a relaxation
A prior and remote cause cannot be made of the “but for” test in Dy Teban v. Jose Ching
the basis of an action if such remote cause [G.R. No. 161803 (2008)]. Plaintiff, however,
did nothing more than furnish the condition must establish a sufficient link between the
or give rise to the occasion by which the act or omission and the damage or injury.
injury was made possible, if there intervened That link must not be remote or far-fetched;
between such prior or remote cause and the otherwise, no liability will attach. The
injury a distinct, successive, unrelated, and damage or injury must be a natural and
efficient cause of the injury, even though probable result of the act or omission.
such injury would not have happened but for
such condition or occasion [Manila Electric v. (3) Substantial factor
Remonquillo, G.R. No. L-8328 (1956)]. If the actor’s conduct is a substantial factor
in bringing about harm to another, the fact
(3) Intervening Cause that the actor neither foresees nor should
The test of determining whether or not the have foreseen the harm or the manner in
intervening cause is sufficient to absolve a which it occurred, does not prevent him from
prior cause of the injury is as follows: being liable. [Philippine Rabbit v. IAC, G.R.
whether the intervention of a later cause is a
No. L-66102-04 (1990)]
significant part of the risk involved in the
defendant’s conduct, or is so reasonable
connected with it that the responsibility (4) Mixed considerations
should not be terminated. In the affirmative, There is no exact formula to determine
such foreseeable intervening forces are probable cause. It is based upon mixed
within the scope of the original risk, and considerations of logic, common sense,
hence of the defendant’s negligence. In the policy and precedent [Dy Teban v. Jose Ching,
negative, there exists an efficient intervening
supra].
cause that relieves the defendant of liability.
Also known as: "doctrine of discovered peril” The doctrine of last clear chance does not apply
or “doctrine of supervening negligence” or in a case of culpa contractual, where neither the
“humanitarian doctrine”. contributory negligence of the plaintiff nor his
The antecedent negligence of the plaintiff last clear chance to avoid the loss, would
does not preclude him from recovering exonerate the defendant from liability. Such
damages caused by the supervening contributory negligence or last clear chance by
negligence of the defendant, who had the the plaintiff merely serves to reduce the recovery
last fair chance to prevent the impending of damages by the plaintiff but does not
harm by the exercise of due diligence [PNR v. exculpate the defendant from his breach of
Brunty, supra]. contract [Consolidated Bank v. CA, G.R. No.
138569 (2003)].
If both parties are found to be negligent; but,
their negligence are not contemporaneous, Last clear chance applies only if the person who
the person who has the last fair chance to allegedly had the last opportunity to avert the
accident was aware of the existence of peril or
avoid the impending harm and fails to do so
should, with exercise of due care, have been
is chargeable with the consequences, aware of it. The doctrine can never apply where
without reference to the prior negligence of the party charged is required to act
the other party [Picart v Smith, supra]. instantaneously, and if the injury cannot be
avoided by application of all means at hand
Simply stated, it covers successive acts of after the peril is or should have been discovered
negligence: [Pantranco v. Baesa, G.R. No. 79051-51(1989)].
servant/employee or in the supervision, when an does not constitute a cause of action, since
injury is caused by the negligence of a damages are merely part of the remedy allowed
servant/employee may be rebutted if the for the injury caused by a breach or wrong
employer shows to the satisfaction of the court [Custodio v. CA, G.R. No. 116100 (1996)].
that in the selection and supervision, he has Injury Damage Damages
exercised the care and diligence of a good father
of a family [Ramos v. PEPSI, G.R. No. L-22533 Illegal invasion Loss, hurt, Recompense or
of a legal right harm resulting compensation
(1967)]. from the injury awarded
C.2. ACTS OF PUBLIC OFFICERS One who made use of his own legal right does
no injury, thus, whatever damages are caused to
When what is involved is a duty owing to the another should be borne solely by him under the
public in general, an individual cannot have a
principle of damnum absque injuria. This
cause of action the public officer although he principle, however, does not apply when there is
may have been injured by the action or inaction
an abuse in the exercise of a person’s right
of the officer, except when the individual suffers
[Amonoy v. Gutierrez, G.R. No. 140420 (2001)]”
a particular or special injury [Vinzons-Chato v
Fortun, G.R. No. 141309 (2008)]. C.5. PLAINTIFF’S NEGLIGENCE IS THE
PROXIMATE CAUSE
C.3. AUTHORITY OF LAW
Art. 2179. When the plaintiff’s own
Art. 5. Acts executed against the provisions negligence was the proximate cause of his
of mandatory or prohibitory laws shall be injury, he cannot recover damages. xxx
void, except when the law itself authorizes
their validity. This defense of plaintiff’s negligence as
proximate cause is absolute, for it bars recovery
RPC, Art. 11. The following do not incur any on the part of the plaintiff. In Manila Electric v.
criminal liability: Remoquillo, supra, the Court did not allow
(5) Any person who acts in the fulfillment of a recovery by Magno, ruling that his death was
duty or in the lawful exercise of a right or primarily caused by his own negligence and in
office some measure by the too close proximity of the
“media agua” to the electric wire.
(8) Any person who acts in obedience to an
order issued by a superior for some lawful If the plaintiff in a negligence action, by his own
purpose carelessness contributed to the principal
occurrence, that is, to the accident, as one of the
C.4. DAMNUM ABSQUE INJURIA determining causes thereof, he cannot recover
There can be damage without injury in those [Bernardo v. Legaspi, G.R. No. 9308 (1914)].
instances in which the loss or harm was not the
result of a violation of a legal duty. C.6. CONTRIBUTORY NEGLIGENCE OF THE
PLAINTIFF
Right to recover damages does not arise from Art. 2179. xxx But if his negligence was only
the mere fact that the plaintiff suffered losses. contributory, the immediate and proximate
To warrant the recovery of damages, there must cause of the injury being the defendant's lack
be both a right of action for a legal wrong of due care, the plaintiff may recover
inflicted by the defendant, and damage damages, but the courts shall mitigate the
resulting to the plaintiff therefrom. Wrong damages to be awarded.
without damage, or damage without wrong,
Prescription periods:
• 4 years for QD
• 1 year for defamation
C.10. WAIVER
Art. 6. Rights may be waived, unless the waiver
is contrary to law, public order, public policy,
morals, or good customs or prejudicial to a third
person with a right recognized by law.
damages pursuant to Article 21 not because false and groundless [Que v. IAC, G.R. No.
of such promise to marry but because of the 66865 (1989)].
fraud and deceit behind it and the willful
injury to her honor and reputation. It is Malicious prosecution involves not only
essential, however, that such injury should criminal but civil and administrative suits as
have been committed in a manner contrary well [Magbanua v. Junsay, supra].
to morals, good customs or public policy
[Baksh v. CA, supra]. (3) Public Humiliation
Lolita’s family filed a case against Alfonse
However, when for one whole year, the Pe, a married man, for allegedly seducing
plaintiff, a woman of legal age, maintained Lolita and causing great damage to the
sexual relations with the defendant, with name of her parents, brothers, and sisters.
repeated acts of intercourse, there is here The Court sustained the claim, finding an
voluntariness. No case under Article 21 is injury to Lolita’s family in a manner contrary
made [Tanjanco v. CA, G.R. No. L-18630 to morals, good customs and public policy
(1966)]. as contemplated in Article 21 of the new Civil
Code [Pe v. Pe, G.R. No. L-17396 (1962)].
(2) Malicious Prosecution
Malicious prosecution is the institution of It is against morals, good customs and
any action or proceeding, either civil or public policy to humiliate, embarrass and
criminal, maliciously and without probable degrade the dignity of a person. Everyone
cause. must respect the dignity, personality, privacy
and peace of mind of his neighbors and
Elements: [Magbanua v. Junsay, G.R. other persons (Article 26, Civil Code) [Grand
No.132659 (2007)] Union v. Espino, G.R. No. L-48250 (1979)].
(a) The fact of the prosecution or that the
prosecution did occur and that the (4) Oppressive Dismissal
defendant was himself the prosecutor or The right of an employer to dismiss an
that he instigated its commencement; employee is not to be confused with the
(b) That the action finally terminated with manner in which this right is to be exercised
and the effects flowing therefrom. If the
an acquittal;
dismissal was done antisocially or
(c) That in bringing the action, the oppressively, then there is a violation of
prosecutor acted without probable cause Article 1701, which prohibits acts of
(d) That the prosecutor was actuated or oppression by either capital or labor against
impelled by legal malice, that is, by the other, and Article 21, which makes a
improper or sinister motive. person liable for damages if he willfully
causes loss or injury to another in a manner
The mere dismissal of the criminal that is contrary to morals, good customs, or
public policy. When the manner in which the
complaint by the fiscal’s office did not create
company exercised its right to dismiss was
a cause of action for malicious prosecution, abusive, oppressive and malicious, it is liable
because the proceedings therein did not for damages [Quisaba v. Sta. Ines, G.R. No.
involve an exhaustive examination of the L-38000 (1974)].
elements of malicious prosecution. To
constitute such, there must be proof that the A.4. UNJUST ENRICHMENT
prosecution was prompted by a sinister
design to vex and humiliate a person and Art. 22. Every person who through an act of
that it was initiated deliberately by the performance by another, or any other means,
defendant knowing that his charges were acquires or comes into possession of
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something at the expense of the latter mind of his neighbors and other persons.
without just or legal ground, shall return the The following and similar acts, though they
same to him. may not constitute a criminal offense, shall
produce a cause of action for damages,
Art. 23. Even when an act or event causing prevention and other relief:
damage to another’s property was not due to (1) Prying into the privacy of another’s
the fault or negligence of the defendant, the residence;
latter shall be liable for indemnity if through (2) Meddling with or disturbing the private
the act or event he was benefited. life or family relations of another;
(3) Intriguing to cause another to be
Art. 2142. Certain lawful, voluntary and
unilateral acts give rise to the juridical alienated from his friends;
relation of quasi-contract to the end that no (4) Vexing or humiliating another on account
one shall be unjustly enriched or benefited at of his religious beliefs, lowly station in
the expense of another. life, place of birth, physical defect, or
other personal condition.
Art. 2143. The provisions for quasi contracts
in this Chapter do not exclude other quasi- Article 26 specifically applies to intentional acts
contracts which may come within the purview
which fall short of being criminal offenses. It
of the preceding article.
itself expressly refers to tortious conduct which
One person should not be permitted to unjustly "may not constitute criminal offenses." The
enrich himself at the expense of another, but purpose is precisely to fill a gap or lacuna in the
should be required to make restitution of, or for law where a person who suffers injury because of
property or benefits received, retained, or a wrongful act not constituting a crime is left
appropriated where it is just and equitable that without any redress. Under Article 26, the
such restitution be made, and where such action
person responsible for such act becomes liable
involves no violation or frustration of law or
opposition to public policy, either directly or for "damages, prevention and other relief." In
indirectly. short, to preserve peace and harmony in the
family and in the community, Article 26 seeks to
Enrichment at the expense of another is not per eliminate cases of damnum absque injuria in
se forbidden. It is such enrichment without just human relations [MVRS Publications v. Islamic
or legal cause that is contemplated here. Just Da'wah Council, G.R. No. 135306 (2003)].
and legal cause is always presumed, and the
plaintiff has the burden of proving its absence.
The principal rights protected under this
provision are the following:
The restitution must cover the loss suffered by
(1) The right to personal dignity
the plaintiff but it can never exceed the amount
of unjust enrichment of the defendant if it is less (2) The right to personal security
than the loss of the plaintiff. (3) The right to family relations
(4) The right to social intercourse
Requisites: (5) The right to privacy
(a) That the defendant has been enriched; (6) The right to peace of mind
(b) That the plaintiff has suffered a loss;
(c) That the enrichment of the defendant is Note: Coverage of Art. 26 is not limited to those
without just or legal ground; and enumerated therein, the enumeration being
(d) That the plaintiff has no other action based merely examples of acts violative of a person’s
on contract, crime or quasi-delict. rights to dignity, personality, privacy and peace
of mind. Other “similar acts” are also covered
within the scope of the article.
A.5. VIOLATION OF HUMAN DIGNITY
Art. 26. Every person shall respect the VIOLATION OF PERSONAL DIGNITY
dignity, personality, privacy and peace of
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In order to be actionable it is not necessary that Public figures enjoy a limited right to privacy
the act constitutes a criminal offense. The as compared to ordinary individuals [Ayer v.
remedy afforded by the law is not only the Capulong, G.R. No. 82380 (1988)].
recovery of damages. “Prevention and other
relief” is also available. In other words,
(2) Intrusion upon plaintiff’s private affairs
injunction and other appropriate reliefs may also
be obtained by the aggrieved party. • This is not limited to situations where the
wrongdoer physically trespasses into one’s
VIOLATION OF PRIVACY property.
Privacy is the right to be let alone, or to be free • Generally, there is no invasion of privacy
from unwarranted publicity, or to live without when journalists report something that
unwarranted interference by the public in
occurs in the public realm, except when
matters in which the public is not necessarily
concerned. This right is purely personal in nature, the acts of the journalist are to an extent
such that it can be invoked only by the person that it constitutes harassment.
actually injured, it is subject to a proper waiver, • RA 4200: It is illegal for any person not
and it ceases upon death. However, the privilege authorized by both parties to any private
may be given to heirs of a deceased to protect communication to secretly record such
his memory, to protect the feelings of the living
communication.
heirs.
Reasonableness of Expectation of Privacy Test: (3) Publicity which puts one in a false light in
[Ople v. Torres, G.R. No. 127685 (1998)] the public eye – The interest here is in not
(1) Whether by one’s conduct, the individual has being made or forced to appear before the
exhibited an expectation of privacy public in an objectionable false light or
(2) Whether this expectation is one that society position.
recognizes and accepts as reasonable
Tort of putting in false
Defamation
The general rule is that the right to privacy may light
only be invoked by natural persons. Juridical The embarrassment of Concerns the
persons cannot invoke this because the basis to a person being reputational harm to a
this right is an injury to the feelings and portrayed as something person
sensibilities of the injured party, and a he is not
corporation has none of those. The exception is
where the right to privacy is invoked along with Statement should be Publication is satisfied
the right against unreasonable searches and actually made in public even if communicated
seizures. “An individual’s right to privacy under to only one specific
Article 26(1) of the Civil Code should not be third person
confined to his house or residence as it may
extend to places where he has the right to (4) Commercial appropriation of likeness of
exclude the public or deny them access” [Sps. image – It consists of appropriation, for the
Hing v. Choachuy, G.R. No. 179736 (2013)]. defendant’s benefit or advantage (ex. used
in defendant’s advertisement), of the
Types of invasion of privacy plaintiff’s name or likeness (picture or
(1) Publication of embarrassing private facts – portrait).
The interest here is the right to be free from
unwarranted publicity, wrongful publicizing DISTURBANCE OF PEACE OF MIND
The disturbance of the mental and emotional
of private affairs and activities, as these are
tranquility of the plaintiff by the defendant is a
outside the ambit of legitimate public legal injury in itself and, therefore, a sufficient
concern. cause of action for damages, injunction, and
other relief. A person, however, cannot be held
liable for damages for the mental or emotional
disturbance of the plaintiff which was due to the
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obliged to render them had done so before Art. 1314. Any person who induces another to
he was injured and that he would be willing violate his contract with another person shall
to continue rendering them had he not been be liable for damages to the other
prevented from so doing [Lilius v. Manila contracting party.
Railroad Company, G.R. No. L-39587 (1934)].
Tort liability may be imposed upon a defendant
who intentionally and improperly interferes with
CRIMINAL CONVERSATION (ADULTERY) the plaintiff’s rights under a contract with
Interference with the marital relations by another person if the interference causes the
committing adultery with one of the spouses. plaintiff to lose a right under the contract or
This is obvious enough in the case of rape makes the contract rights more costly or less
but also applies where the adulterous valuable. This law of interference of contract is
spouse consented to or initiated the part of a larger body of tort law aimed at
intercourse. [PROSSER AND KEETON, p. protection of relationships [PROSSER AND
KEETON].
917]
Elements of tort interference: [So Ping Bun v. CA,
Social Relations G.R. No. 120554 (1999)]
(1) Meddling with or disturbing family relations (a) Existence of a valid contract
Art. 26. Every person shall respect the (b) Knowledge on the part of the third person of
dignity, personality, privacy and peace of the existence of contract; and
mind of his neighbors and other persons. (c) Interference of the third person is without
The following and similar acts, though they
legal justification or excuse.
may not constitute a criminal offense, shall
produce a cause of action for damages,
prevention and other relief; Everyone has a right to enjoy the fruits and
xxx advantages of his own enterprise, industry, skill
2) Meddling with or disturbing the private life and credit. He has no right to be protected
or family relations of another; against competition; but he has a right to be free
from malicious and wanton interference,
Developed as an offshoot of the action for disturbance or annoyance. If disturbance or loss
enticing away a servant and depriving the comes as a result of competition, or the exercise
master of the proprietary interest in [the of like rights by others, it is damnum absque
servant’s] services until there has been a injuria, unless some superior right by contract or
gradual shift of emphasis away from otherwise is interfered with. Thus, a plaintiff
“services” and toward a recognition of more loses his cause of action if the defendant
intangible elements in the domestic provides a sufficient justification for such
relations, such as companionship and interference, which must be an equal or superior
affection. [PROSSER AND KEETON, p. 916] right in themselves. The defendant may not
legally excuse himself on the ground that he
INTRIGUING TO CAUSE ANOTHER TO BE ALIENATED acted on a wrong understanding of his own
FROM HIS FRIENDS rights, or without malice, or bona fide, or in the
A person who committed affirmative acts best interests of himself [Gilchrist v. Cuddy, G.R.
intended to alienate the existing friendship No. 9356 (1915)].
of one with his friends is liable for damages.
A man is a social being and for being so, he Bad faith/Malice is required to make the
needs friends to socialize with and to defendant liable for damages in cases of
depend upon in case of need. To alienate tortuous interference [So Ping Bun v. CA, supra].
him wrongfully or with malice from his
friends is to cause him suffering for which he A.6 DERELICTION OF DUTY
is entitled to damages.
Art. 27. Any person suffering material or
Economic Relations moral loss because a public servant or
employee refuses or neglects, without just
cause, to perform his official duty may file an B.1. VIOLATION OF CIVIL AND POLITICAL
action for damages and other relief against RIGHTS
the latter, without prejudice to any
Art. 32. Any public officer or employee, or any
disciplinary administrative action that may
be taken. private individual, who directly or indirectly
obstructs, defeats, violates or in any manner
This applies only to acts of nonfeasance or the impedes or impairs any of the following
nonperformance of some acts which a person is rights and liberties of another person shall
obliged or has responsibility to perform. The be liable to the latter for damages:
duty of the public servant must be ministerial in (1) Freedom of religion
character. If the duty is discretionary, he is not
(2) Freedom of speech
liable unless he acted in a notoriously arbitrary
manner. (3) Freedom to write for the press or to
maintain a periodical publication
The defense of good faith is not available (4) Freedom from arbitrary or illegal
because an officer is under constant obligation detention
to discharge the duties of his office, and it is not (5) Freedom of suffrage
necessary to show that his failure to act was due (6) The right against deprivation of property
to malice or willfulness.
without due process of law
Requisites: [Amaro v. Sumanguit, G.R. No. L- (7) The right to just compensation when
14986 (1962)] property is taken for public use
(a) Defendant is a public officer charged with a (8) The right to equal protection of the laws
performance of a duty in favor of the (9) The right to be secure in one’s person,
plaintiff; house, papers and effects against
(b) He refused or neglected without just cause unreasonable searches and seizures
to perform the duty; (10) The liberty of abode and of changing the
(c) Plaintiff sustained material or moral loss as same
a consequence of such non-performance; (11) The right to privacy of communication
(d) The amount of such damages, if material. and correspondence
(12) The right to become a member of
A.7. UNFAIR COMPETITION associations and societies for purposes
Art. 28. Unfair competition in agricultural, not contrary to law
commercial or industrial enterprises or in (13) The right to take part in a peaceable
labor through the use of force, intimidation, assembly and petition the government
deceit, machination or any other unjust, for redress of grievances
oppressive or highhanded method shall give (14) The right to be free from involuntary
rise to a right of action by the person who
servitude in any form
thereby suffers damage.
(15) The right of the accused against
B. INDEPENDENT CIVIL ACTIONS excessive bail
(16) The right of the accused to be heard by
Rule 111, Sec. 3, ROC. In the cases provided for
himself and counsel, to be informed of
in Articles 32, 33, 34 and 2176 of the Civil
Code of the Philippines, the independent civil the nature and the cause of the
action may be brought by the offended party. accusation against him, to have a speedy
It shall proceed independently of the criminal and public trial, to meet the witnesses
action and shall require only a face to face, to have compulsory process
preponderance of evidence. In no case, to secure the attendance of witnesses on
however, may the offended party recover is behalf;
damages twice for the same act or omission
(17) Freedom from being compelled to be a
charged in the criminal action.
witness against one’s self, or from being
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forced to confess his guilt, or from being protection of individual rights. [Silahis v. Soluta,
induced by a promise of immunity or G.R. No. 163087 (2006)]
reward to make such confession, except It is obvious that the purpose of the above codal
when the person confessing becomes a provision (Art. 32) is to provide a sanction to the
State witness. deeply cherished rights and freedoms enshrined
(18) Freedom from excessive fines, or cruel in the Constitution. Its message is clear; no man
and unusual punishment, unless the may seek to violate those sacred rights with
same is imposed or inflicted in impunity. In times of great upheaval or of social
accordance with a statute which has not and political stress, when the temptation is
been judicially declared unconstitutional; strongest to yield — borrowing the words of
(19) Freedom of access to the courts Chief Justice Claudio Teehankee — to the law of
force rather than the force of law, it is necessary
In any of the cases referred to in this article, to remind ourselves that certain basic rights and
whether or not the defendant’s act or liberties are immutable and cannot be sacrificed
omission constitutes a criminal offense, the to the transient needs or imperious demands of
aggrieved party has a right to commence an the ruling power. The rule of law must prevail, or
entirely separate and distinct civil action for else liberty will perish [Aberca, et al. v. Ver, et al.,
damages, and for other relief. Such civil G.R. No. 69866(1988)].
action shall proceed independently of any
B.2. DEFAMATION, FRAUD, PHYSICAL
criminal prosecution (if the latter be
INJURIES
instituted) and may be proved by a
preponderance of evidence. Art. 33. In cases of defamation, fraud, and
physical injuries, a civil action for damages,
The indemnity shall include moral damages. entirely separate and distinct from the
Exemplary damages may also be criminal action, may be brought by the
adjudicated. injured party. Such civil action shall proceed
independently of the criminal prosecution,
The responsibility herein set forth is not and shall require only a preponderance of
demandable from a judge unless his act or evidence.
omission constitutes a violation of the Penal
code or any other penal statute. The civil action for damages that Article 33
allows to be instituted is ex-delicto. This is
manifest from the provision which uses the
Article 32 speaks of a particular specie of an expressions “criminal action” and “criminal
“act” that may give rise to an action for damages prosecution”. Quoting Tolentino, the Court ruled
against a public officer, and that is, a tort for that this provision is an exception to the general
impairment of rights and liberties. [Vinzons- rule that the civil action for recovery of civil
Chato v. Fortune, supra] liability arising from the offense charged is
impliedly instituted with the criminal action.
Article 32 is clear that not only public officers Where the offense is defamation, fraud, or
but also private individuals can incur civil physical injuries, a civil action may be filed
liability for violation of rights enumerated independently of the criminal action, even
therein. Because the provision speaks of an though no reservation is made [Madeja v. Caro,
officer, employee or person “directly or G.R. No. 51183 (1983)].
indirectly” responsible for the violation of the (1) Defamation – the offense of injuring a
constitutional rights and liberties of another, it is
not the actor alone who must answer for person’s character, fame or reputation
damages under Article 32. It is not even through false or malicious statements.
necessary that the defendant should have acted Defamation is an invasion of a relational
with malice or bad faith, otherwise, it would interest since it involves the opinion which
defeat its main purpose, which is the effective
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others in the community may have, or tend Assault is an intentional, unlawful offer of
to have, of the plaintiff. physical injury to another by force unlawfully
directed toward the person of another, under
Elements of libel pursuant to RPC, Art. 353: such circumstances as to create a well-
(a) An allegation or imputation of a founded fear of imminent peril, coupled with
the apparent present ability to effectuate the
discreditable act or condition concerning
attempt if not prevented. The law seeks to
another protect the interest of the individual in
(b) Publication of the imputation freedom from offensive bodily touching
(c) Identity of the person defamed although no actual harm is done.
(d) Existence of malice
Defamation and fraud (in Art. 33) are used in
Where the defamation is alleged to have their ordinary sense because there are no
been directed at a group or class, it is specific provisions in the Revised Penal Code
essential that the statement must be so using these terms as names of offenses
sweeping or all-embracing as to apply to defined therein, so that these two terms
every individual in that group or class, or defamation and fraud must have been used
sufficiently specific so that each individual in not to impart to them any technical meaning
the class or group can prove that the in the laws of the Philippines, but in their
defamatory statement was specifically generic sense. With these apparent
pointed to him [MVRS Publications, Inc. v. circumstances in mind, it is evident that the
Islamic, supra]. term “physical injuries” could not have been
used in its specific sense as a crime defined
In determining whether certain utterances in the Revised Penal Code, for it is difficult to
are defamatory, the words used are to be believe that the Code Commission would
construed in their entirety and taken in their have used terms in same article—some in
plain, natural and ordinary meaning, as they this general and others in its technical sense.
would naturally be understood by persons In other words, the term “physical injuries”
hearing or reading them, unless it appears should be understood to mean bodily injury,
that they were used and understood in not the crime of physical injuries, because
another sense. When malice in fact is proven, the terms used with the latter are general
assertions and proofs that the libelous terms [Carandang v. Santiago and Valenton,
articles are qualifiedly privileged G.R. No. L-8238 (1955)].
communications are futile, since being
qualifiedly privileged communications Paje was acquitted of the charge of homicide
merely prevents the presumption of malice and double serious physical injuries through
from attaching in a defamatory imputation reckless imprudence on the ground that the
[Yuchengco v. Manila Chronicle, G.R. No. collision was a pure accident and the
184315 (2009)]. negligence charged against him did not exist.
In a separate civil action to enforce civil
(2) Fraud – Estafa under RPC, 315; Article 33 liability filed by the heirs of the deceased,
does not cover violations of B.P. 22. the Court ruled that criminal negligence is
not one of the three crimes mentioned in
Article 33, which authorizes the institution of
(3) Physical Injuries (Assault and Battery)
an independent civil action. Although in the
Battery case of Dyogi v. Yatco, the Court held that
Battery is the actual infliction of any the term “physical injuries” includes
unlawful or unauthorized violence on the homicide, it is borne in mind that the charge
person of another, irrespective of its degree. against Paje was for reckless imprudence
The law protects the interest of the resulting in homicide, and the law penalizes
individual in freedom from bodily harm or the negligent or careless act, not the result
any impairment of the physical integrity of thereof [Corpus v. Paje, G.R. No. L-26737
the body. (1969)].
Assault
Nature of liability
(1) Of the police officer – Primary
(2) City or municipality – Subsidiary
IV. Liability Attached To shall be liable for damages for the death of,
or injuries suffered by, any person by reason
Specific Persons of the defective condition of roads, streets,
bridges, public buildings, and other public
works under their control or supervision.
A. STRICT LIABILITY
It is not even necessary that the defective roads
A.1. POSSESSOR OR USER OF ANIMALS or streets belong to the province, city or
Art. 2183. The possessor of an animal or municipality for liability to attach. The article
whoever may make use of the same is only requires that either control or supervision
responsible for the damage which it may be exercised over said street or road [Guilatco v.
cause, although it may escape or be lost. This Dagupan, G.R. No. 61516 (1989)].
responsibility shall cease only in case the
damage should come from force majeure or A.3. PROPRIETOR OF BUILDING OR
from the fault of the person who has suffered STRUCTURE
damage.
Art. 2190. The proprietor of a building or
Since the law makes no distinction, this is structure is responsible for the damages
applicable to both wild (in case the wild animal resulting from its total or partial collapse, if it
is kept) and domestic animals. It is enough that should be due to the lack of necessary
defendant is the possessor, owner, or user of the repairs.
animal at the time it caused the damage
complained of, to hold him liable therefor. Art. 2191. Proprietors shall also be
responsible for damages caused:
Possession of the animal, not ownership, is (1) By the explosion of machinery which has
determinative of liability under Art. 2183. The not been taken care of with due
obligation imposed by said article is not based diligence, and the inflammation of
on the negligence or on the presumed lack of explosive substances which have not
vigilance of the possessor or user of the animal been kept in a safe and adequate place;
causing damage. It is based on natural equity
and on the principle of social interest that he (2) By excessive smoke, which may be
who possesses animals for his utility, pleasure, harmful to persons or property;
or service, must answer for any damage which (3) By the falling of trees situated at or near
such animal may cause. The contention that the highways or lanes, if not caused by force
defendant could not be expected to exercise majeure;
remote control of the animal is not acceptable. (4) By emanations from tubes, canals,
In fact, Art. 2183 holds the possessor liable even
sewers or deposits of infectious matter,
if the animal should “escape or be lost” and so
be removed from his control. It is likewise constructed without precautions suitable
immaterial that the animal was tame and was to the place.
merely provoked by the victim. The law does not
speak only of vicious animals but covers even Art. 2192. If damage referred to in the two
tame ones as long as they cause injury [Vestil v. preceding articles should be the result of any
IAC, G.R. No. 74431 (1989)]. defect in the construction mentioned in
article 1723, the third person suffering
Possible defenses against this liability damages may proceed only against the
(1) Force Majeure engineer or architect or contractor in
(2) Fault of person suffering damage accordance with said article, within the
(3) Act of third persons period therein fixed.
damage or injury to another’s person or property. those plans and specifications, or due to the
This duty obtains whether the building is leased defects in the ground. The contractor is
or held in usufruct. Considering, however, that likewise responsible for the damages if the
the lessee or usufructuary has direct and edifice falls, within the same period, on
immediate control of the building, the law account of defects in the construction or the
imposes on him the duty to notify the proprietor use of materials of inferior quality furnished
of such urgent or extraordinary repairs. And by him, or due to any violation of the terms of
where the proprietor’s failure to make the the contract. If the engineer or architect
necessary repairs was due to the failure of the supervises the construction, he shall be
lessee or usufructuary to notify him, the solidarily liable with the contractor.
proprietor is entitled to indemnification for
damages he may have been required to pay to Acceptance of the building, after completion,
the parties. does not imply waiver of any of the cause of
action by reason of any defect mentioned in
Liability does not attach to the proprietor if the the preceding paragraph.
damage was caused by any defect in the
construction mentioned in Article 1723, in which The action must be brought within ten years
case the action should be against the engineer following the collapse of the building.
or architect.
Engineer or architect who drew up the plans and
Under Article 2190, the plaintiff is required to specifications is liable if the building collapses
prove: within 15 years due to:
(a) The total or partial collapse of a building or (1) A defect in those plans and specifications; or
structure (2) Due to the defects in the ground.
(b) That the defendant is the proprietor
(c) That the collapse was due to the lack of Contractor is liable if the edifice falls within 15
necessary repairs years due to:
(1) Defects in the construction;
Note: There is no requirement to prove (2) The use of materials of inferior quality
negligence. furnished by the contractor; or
(3) Due to any violation of the terms of the
Under Article 2191, with the exception of No. 1, contract.
negligence is also not an issue.
Here, the plaintiff need only prove that such
The owner or proprietor of a place of public conditions (defects) exist, and need not prove
amusement impliedly warrants that the that negligence of the defendant be the cause of
premises, appliances and amusement devices the conditions.
are safe for the purpose for which they are
designed, the doctrine being subject to no other A.5. OWNERS OF ENTERPRISES OR OTHER
exception or qualification than that he does not EMPLOYERS
contract against unknown defects not Art. 1711. Owners of enterprises and other
discoverable by ordinary or reasonable means employers are obliged to pay compensation
[Gotesco Investment Corp. v. Chatto, G.R. No. for the death of or injuries to their laborers,
workmen, mechanics or other employees,
87584 (1992)].
even though the event may have been purely
accidental or entirely due to a fortuitous
A.4. ENGINEER OR ARCHITECT OF cause, if the death or personal injury arose
COLLAPSED BUILDING out of and in the course of the employment.
Art. 1723. The engineer or architect who drew The employer is also liable for compensation
up the plans and specifications for a building if the employee contracts any illness or
is liable for damages if within fifteen years disease caused by such employment or as
from the completion of the structure, the the result of the nature of the employment. If
same should collapse by reason of a defect in the mishap was due to the employee's own
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notorious negligence, or voluntary act, or (2) When death or injury is caused by a fellow
drunkenness, the employer shall not be worker
liable for compensation. When the • General rule: The employer is solidarily
employee's lack of due care contributed to
liable with the fellow worker causing the
his death or injury, the compensation shall
be equitably reduced. death or injury
• Exception: If the only cause of the death or
Art. 1712. If the death or injury is due to the injury was the fellow worker’s intentional
negligence of a fellow worker, the latter and or malicious act
the employer shall be solidarily liable for • Exception to the exception: If it is shown
compensation. If a fellow worker's intentional that the employer did not exercise due
malicious act is the only cause of the death or diligence in the selection and supervision
injury, the employer shall not be answerable, of the fellow worker causing the death or
unless it should be shown that the latter did injury
not exercise due diligence in the selection or
supervision of the plaintiff's fellow worker. A.6. HEAD OF A FAMILY FOR THINGS
THROWN OR FALLING
Alarcon, a teacher, hired Urzino and Azaña to Art 2193. The head of a family that lives in a
dig a well on his land; in the course of which building or a part thereof, is responsible for
Urzino died of asphyxia. The Court found that damages caused by things thrown or falling
under the principle of ejusdem generis, said from the same.
“other employers” mentioned in Article 1711
The purpose of the law is to relieve the injured
must be construed to refer to persons who
party of the difficulty of determining and proving
belong to a class analogous to “owners of who threw the thing or what caused it to fall, or
enterprises”, such as those operating a business that either was due to the fault or negligence of
or engaged in a particular industry or trade, any particular individual.
requiring its managers to contract the services of
laborers, workers and/or employees. Alarcon, Lessee is considered as the head of the family. It
not owning any enterprise, did not fall under the is enough that he lives in and has control over it
category of “other employers” [Alarcon v. [Dingcong v. Kanaan, G.R. No. L-47033 (1941)].
Alarcon, G.R. No. L-15692 (1961)].
A.7. PRODUCTS LIABILITY
Situations covered: I. MANUFACTURERS / PROCESSORS OF
(1) Death or injury arising out of or in the course FOODSTUFFS
of employment – here, the employer is liable Art. 2187. Manufacturers and processors of
even if the event which caused the death or foodstuffs, drinks, toilet articles and similar
injury was purely accidental or due to a goods shall be liable for death or injuries
fortuitous event caused by any noxious or harmful substances
used, although no contractual relation exists
(2) Illness or disease caused by their between them and the consumers.
employment or as the result of the nature of
the employment Under the foregoing provision, liability is not
made to depend upon fault or negligence of the
Defenses available to the employer: manufacturer or processor. The provision
(1) When death or injury is not caused by a likewise dispensed with any contractual relation
fellow worker between the manufacturer and the consumer,
thereby clearly implying that liability is imposed
• The mishap due to the employee’s own by law as a matter of public policy.
notorious negligence or voluntary act, or
drunkenness
The service is defective when it does not The consumer may make immediate use of
provide the safety the consumer may the alternatives under the second paragraph
rightfully expect of it, taking the relevant of this Article when by virtue of the extent of
circumstances into consideration, including the imperfection, the replacement of the
but not limited to: imperfect parts may jeopardize the product
(a) the manner in which it is provided; quality or characteristics, thus decreasing its
(b) the result of hazards which may value.
reasonably be expected of it;
(c) the time when it was provided. If the consumer opts for the alternative under
sub-paragraph (a) of the second paragraph
A service is not considered defective because of this Article, and replacement of the
of the use or introduction of new techniques. product is not possible, it may be replaced by
another of a different kind, mark or model:
The supplier of the services shall not be held Provided, That any difference in price may
liable when it is proven: result thereof shall be supplemented or
(a) that there is no defect in the service reimbursed by the party which caused the
damage, without prejudice to the provisions
rendered; of the second, third and fourth paragraphs of
(b) that the consumer or third party is solely this Article.
at fault.
Article 101. Liability for Product Quantity
Article 100. Liability for Product and Service Imperfection. – Suppliers are jointly liable for
Imperfection. – The suppliers of durable or imperfections in the quantity of the product
nondurable consumer products are jointly when, in due regard for variations inherent
liable for imperfections in quality that render thereto, their net content is less than that
the products unfit or inadequate for indicated on the container, packaging,
consumption for which they are designed or labeling or advertisement, the consumer
decrease their value, and for those resulting having powers to demand, alternatively, at
from inconsistency with the information his own option:
provided on the container, packaging, labels (a) the proportionate price
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(b) the supplementing of weight or measure as regards to the latter by the consumer.
differential;
(c) the replacement of the product by Article 104. Ignorance of Quality
another of the same kind, mark or model, Imperfection. – The supplier's ignorance of
the quality imperfections due to inadequacy
without said imperfections;
of the products and services does not exempt
(d) the immediate reimbursement of the him from any liability.
amount paid, with monetary updating
without prejudice to losses and damages Article 105. Legal Guarantee of Adequacy. –
if any. The legal guarantee of product or service
adequacy does not require an express
The provisions of the fifth paragraph of instrument or contractual exoneration of the
Article 99 shall apply to this Article. supplier being forbidden.
The immediate supplier shall be liable if the Article 106. Prohibition in Contractual
instrument used for weighing or measuring is Stipulation. – The stipulation in a contract of
not gauged in accordance with official a clause preventing, exonerating or reducing
standards. the obligation to indemnify for damages
effected, as provided for in this and in the
Article 102. Liability for Service Quality preceding Articles, is hereby prohibited, if
Imperfection. – The service supplier is liable there is more than one person responsible for
for any quality imperfections that render the the cause of the damage, they shall be jointly
services improper for consumption or liable for the redress established in the
decrease their value, and for those resulting pertinent provisions of this Act. However, if
from inconsistency with the information the damage is caused by a component or
contained in the offer or advertisement, the part incorporated in the product or service,
consumer being entitled to demand its manufacturer, builder or importer and the
alternatively at his option: person who incorporated the component or
(a) the performance of the services, without part are jointly liable.
any additional cost and when applicable;
A.8. NUISANCE
(b) the immediate reimbursement of the
amount paid, with monetary updating Art. 694. A nuisance is any act, omission,
without prejudice to losses and damages, establishment, business, condition of
if any; property, or anything else which:
(1) Injures or endangers the health or safety
(c) a proportionate price reduction.
of others; or
Reperformance of services may be entrusted (2) Annoys or offends the senses; or
to duly qualified third parties, at the (3) Shocks, defies or disregards decency or
supplier's risk and cost. morality; or
(4) Obstructs or interferes with the free
Improper services are those which prove to passage of any public highway or street,
be inadequate for purposes reasonably or any body of water; or
expected of them and those that fail to meet
(5) Hinders or impairs the use of property.
the provisions of this Act regulating service
rendering.
Art. 696. Every successive owner or possessor
Article 103. Repair Service Obligation. – of property who fails or refuses to abate a
When services are provided for the repair of nuisance in that property started by a former
any product, the supplier shall be considered owner or possessor is liable therefor in the
implicitly bound to use adequate, new, same manner as the one who created it.
original replacement parts, or those that
maintain the manufacturer's technical Art. 697. The abatement of a nuisance does
specifications unless, otherwise authorized, not preclude the right of any person injured
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to recover damages for its past existence. lands in a manner as will constitute a nuisance.
It is based on the maxim sic utere tuo ut alienum
Art. 698. Lapse of time cannot legalize any non laedas (so use your own as not to injure
nuisance, whether public or private. another’s property).
Nuisance is a condition and not an act or failure The general rule is that everyone is bound to
to act, so that if a wrongful condition exists, the bear the habitual or customary inconveniences
person responsible for its existence is that result from the proximity of others, and so
responsible for the resulting damages to others. long as this level is not surpassed, he may not
complain against them. But if the prejudice
Sangco: A person who creates or maintains a
nuisance is liable for the resulting injury to exceeds the inconveniences that such proximity
others regardless of the degree of care or skill habitually brings, the neighbor who causes such
exercised to avoid the injury. The creation or disturbances is held responsible for the resulting
maintenance of a nuisance is a violation of an damage, being guilty of causing nuisance. There
absolute duty. can be no doubt that commercial and industrial
activities which are lawful in themselves may
Liability for Negligence v. Liability for Nuisance
become nuisances if they are so offensive to the
Negligence Nuisance senses that they render the enjoyment of life and
Basis Liability is Liability attaches property uncomfortable. It is no defense that
based on lack of regardless of the skill and care have been exercised and the most
proper care and skill exercised to improved methods and appliances employed to
diligence avoid the injury prevent such result. In this case, the Court ruled
Condition Act complained There is continuing that causing or maintaining disturbing noises or
of the act of is already harm being sounds may constitute an actionable nuisance
done which suffered by the [Velasco v. Manila Electric Co., G.R. No. 18390
caused injury to aggrieved party
the plaintiff because of the (1971)].
maintenance of the
act or thing which Types of Nuisance:
constitutes the (1) Nuisance per se
nuisance It is recognized as a nuisance under any and
Remedy Action for Abatement all circumstances because it constitutes a
damages direct menace to public health and safety
and, for that reason, may be abated
summarily under the undefined law of
Easement against Nuisance
necessity.
Art. 682. Every building or piece of land is
subject to the easement which prohibits the
To become a nuisance per se, the thing must,
proprietor or possessor from committing
of itself, because of its inherent qualities,
nuisance through noise, jarring, offensive
without complement, be productive of injury,
odor, smoke, heat, dust, water, glare and
or, by reason of the matter of its use or
other causes.
exposure, threaten or be dangerous to life or
property.
Art. 683. Subject to zoning, health, police
and other laws and regulations, factories and (2) Nuisance per accidens
shops may be maintained provided the least
possible annoyance is caused to the It becomes a nuisance depending upon
neighborhood. certain conditions and circumstances, and
its existence being a question of fact, it
The provisions impose a prohibition upon cannot be abated without due hearing
owners of buildings of land from committing thereon in a tribunal authorized to decide
therein a nuisance or using such buildings or whether such a thing does in law constitute
a nuisance.
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Art. 707. A private person or a public official It is doubtful whether contributory negligence
extrajudicially abating a nuisance shall be can properly be imputed to the deceased, owing
liable for damages: to his immature years and the natural curiosity
(1) If he causes unnecessary injury; or which a child would feel to do something out of
(2) If an alleged nuisance is later declared by the ordinary, and the mere fact that the
the courts to be not a real nuisance. deceased ignored the caution of a companion of
the age of 8 years does not, in our opinion, alter
the case. Contributory negligence of a minor
(5) Attractive Nuisance does not bar recovery, where his immaturity and
General Rule: When people come to the natural curiosity impelled him to act to his
lands or premises of others for their own injury; but discretion shown by the child is the
purposes, without right or invitation, they decisive factor [Del Rosario v. Manila Electric Co.,
must take the lands as they see them. G.R. No. L-35283 (1932)].
Head of the Family that lives Liable for damages caused by things
in a building or any part thrown or falling from the same
thereof
CIVIL LAW
DAMAGES
prevent recovery or the award of damages -If the obligor acted with
[Talisay-Silay v. Associacion, G.R. No. 91852 FRAUD, BAD FAITH,
(1995)]. MALICE or WANTON
ATTITUDE, he shall be
Components responsible for all
Actual damage covers the following: damages which may be
(1) Value of loss; unrealized profit reasonably attributed to
(2) Attorney’s fees and expenses of litigation the breach.
(3) Interest Liability extends to all
damages which are the
Loss Covered: natural and probable
In General consequence of the act
Art. 2200. Indemnification for damages shall Crimes or omission complained
comprehend not only the value of the loss Art. and of
suffered, but also that of the profits which 2202 Quasi-
the obligee failed to obtain. delicts WON the damage was
foreseen or could have
been reasonably
In other words, indemnification for damages
foreseen by the
is not limited to damnum emergens (actual
defendant is irrelevant
loss) but extends to lucrum cessans (a cession
of gain or amount of profit lost).
C.1 IN CONTRACTS AND QUASI-
The award of damages for loss of earning CONTRACTS
capacity is concerned with the determination Art. 2201. In contracts and quasi-contracts,
of losses or damages sustained by the the damages for which the obligor who acted
[plaintiffs], as dependents and intestate heirs in good faith is liable shall be those that are
of the deceased, and that said damages the natural and probable consequences of
consist, not of the full amount of his earnings, the breach of the obligation, and which the
but of the support they received or would parties have foreseen or could have
have received from him had he not died in reasonably foreseen at the time the
consequence of negligence of [defendant’s] obligation was constituted.
agent… Only net earnings, and not gross
earnings are to be considered. That is, the In case of fraud, bad faith, malice or wanton
total of the earnings less expenses necessary attitude, the obligor shall be responsible for
in the creation of such earnings or income all damages which may be reasonably
and less living and other incidental expenses attributed to the non-performance of the
[Candano Shipping Lines, Inc. v Sugata-on, obligation.
G.R. No. 163212 (2007)].
Art. 2214. In quasi delicts, the contributory
C. EXTENT OR SCOPE OF ACTUAL negligence of the plaintiff shall reduce the
DAMAGES damages that he may recover.
Source Extent of Liability
Art. 2215. In contracts, quasi-contracts, and
-If the obligor acted in
quasi-delicts, the court may equitably
GOOD FAITH, he shall
mitigate the damages under circumstances
be liable for natural and
other than the case referred to in the
probable consequences
Contracts preceding article, as in the following
of the breach, which the
Art. and instances:
parties have foreseen or
2201 Quasi- (1) That the plaintiff himself has
could have reasonably
contracts contravened the terms of the contract;
foreseen at the time the
obligation was (2) That the plaintiff has derived some
constituted. benefit as a result of the contract;
(3) In cases where exemplary damages are
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In case of crimes, damages are to be The plaintiff need not be actually engaged in
increased or decreased according to gainful employment to recover damages due
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to loss or impairment of earning capacity. In (1) The defendant shall be liable for the loss
determining the amount of damages to be of the earning capacity of the deceased,
awarded, the Supreme Court considered the and the indemnity shall be paid to the
plaintiff’s age, probable life expectancy, the
heirs of the latter; such indemnity shall in
state of his health, and his mental and
physical condition before the accident… every case be assessed and awarded by
Taking into account [the plaintiff’s] the court, unless the deceased on
outstanding abilities, he would have enjoyed account of permanent physical disability
a successful professional career in banking not caused by the defendant, had no
[Mercury Drug v Huang, G.R. No. 172122 earning capacity at the time of his death;
(2007)]. (2) If the deceased was obliged to give
support according to the provisions of
INJURY TO BUSINESS STANDING OR
COMMERCIAL CREDIT article 291, the recipient who is not an
Loss of goodwill should be proven with the heir called to the decedent's inheritance
same standard of proof as other by the law of testate or intestate
compensatory damages [Tanay Recreation succession, may demand support from
Center v. Fausto, G.R. No. 140182 (2005)]. the person causing the death, for a
period not exceeding five years, the exact
Formula for the net earning capacity
Net earning capacity = Life expectancy * duration to be fixed by the court;
(Gross annual income – Reasonable living (3) The spouse, legitimate and illegitimate
expenses) [People vs. Aringue, G.R. No. descendants and ascendants of the
116487 (1997)]. deceased may demand moral damages
for mental anguish by reason of the
Where: death of the deceased.
Life expectancy = 2/3 * (80 – age of victim at
the time of death)
Civil / Death Indemnity :
Mere commission of the crime shall entitle
As a rule, documentary evidence should be
the heirs of the deceased to such damages.
presented to substantiate the claim for loss of
But there has been inconsistency as to
earning capacity [Tan, et al. vs. OMC Carriers,
whether indemnity is 50,000 or 75,000
Inc., G.R. No. 190521 (2011)].
[CASIS, Damages].
By way of exception, damages for loss of
As to the loss of earning capacity:
earning capacity may be awarded despite the
General Rule:
absence of documentary evidence when: (1)
Shall be awarded in every case, and that
the deceased is self-employed and earning
claimant shall present documentary evidence
less than the minimum wage under current
to substantiate claim for damages.
labor laws, in which case, judicial notice may
be taken of the fact that in the deceased's
Exceptions:
line of work, no documentary evidence is
available; or (2) the deceased is employed as (1) If the deceased was self-employed and
a daily wage worker earning less than the earning less than the minimum wage; or
minimum wage under current labor laws. (2) The deceased was a daily wage worker
earning less than the minimum wage.
DEATH BY CRIME OR QUASI-DELICT
Art. 2206. The amount of damages for death Additional Exception:
caused by a crime or quasi-delict shall be at Testimonial evidence suffices to establish a
least three thousand pesos, even though basis for which the court can make a fair and
there may have been mitigating reasonable estimate of the loss of earning
circumstances. capacity [Pleyto v. Lomboy, G.R. No. 148737
(2004)]
In addition:
The SC held that it could not be proven that In all cases, the attorney's fees and expenses
the age of the victim was such that it would of litigation must be reasonable.
support a penalty of death. Thus, it imposed
reclusion perpetua instead. But SC said that General Rule
this should not affect the civil liability to be Attorney’s fees and costs of litigation are
imposed, and maintained the same at Php. recoverable IF stipulated.
75,000 [People v. Bartolini, G.R. No. 179498
(2010)]. Exceptions
If there is no stipulation, they are recoverable
In cases of rape with homicide, civil indemnity only in the following cases:
in the amount of Php. 100,000 should be (1) By reason of malice or bad faith
awarded to the heirs of the victim [People vs. (a) When exemplary damages are
Pascual, G.R. No. 172326 (2009)]. awarded
(b) In case of a clearly unfounded civil
D. ATTORNEY’S FEES AND EXPENSES
action
OF LITIGATION
(c) Where defendant acted in gross and
Art. 2208. In the absence of stipulation, evident bad faith
attorney's fees and expenses of litigation, (d) When at least double judicial costs
other than judicial costs, cannot be
are awarded
recovered, except:
(1) When exemplary damages are awarded; (1) By reason of plaintiff’s indigence in
(2) When the defendant's act or omission (a) Actions for legal support
has compelled the plaintiff to litigate (b) Actions for recovery of wages of
with third persons or to incur expenses to laborers, etc.
protect his interest; (c) Actions for workmen’s
(3) In criminal cases of malicious compensation
prosecution against the plaintiff; (2) By reason of crimes in
(4) In case of a clearly unfounded civil action (a) Criminal cases of malicious
or proceeding against the plaintiff; prosecution
(5) Where the defendant acted in gross and (b) Separate actions to recover civil
evident bad faith in refusing to satisfy the liability arising from crime
plaintiff's plainly valid, just and (3) By reason of equity
A. WHEN AWARDED
Awarded when injury consists of:
(1) Physical suffering
(2) Besmirched reputation
(3) Mental anguish
(4) Fright
(5) Moral shock
(6) Wounded feelings
(7) Social humiliation
(8) Serious anxiety
(9) Similar injury
same; adjudicated.
(3) The privacy of communication and
correspondence; The responsibility herein set forth is not
demandable from a judge unless his act or
(4) The right to become a member of
omission constitutes a violation of the Penal
associations or societies for purposes Code or other penal statute.
not contrary to law;
(5) The right to take part in a peaceable B.9 VIOLATION OF CIVIL AND POLITICAL
assembly to petition the government for RIGHTS
redress of grievances; The purpose of [CC 32] is to provide a
(6) The right to be free from involuntary sanction to the deeply cherished rights and
servitude in any form; freedoms enshrined in the Constitution.
(7) The right of the accused against Under [CC 32], it is not necessary that the
excessive bail; public officer acted with malice or bad
(8) The right of the accused to be heard by faith. To be liable, it is enough that there was
a violation of the constitutional rights of
himself and counsel, to be informed of petitioner, even on the pretext of justifiable
the nature and cause of the accusation motives or good faith in the performance of
against him, to have a speedy and public one's duties [Cojuangco v. CA, (1999)].
trial, to meet the witnesses face to face,
and to have compulsory process to Article 32 of the Civil Code provides that
secure the attendance of witness in his moral damages are proper when the rights of
individuals, including the right against
behalf;
deprivation of property without due process
(9) Freedom from being compelled to be a of law, are violated [Meralco v Spouses Chua
witness against one's self, or from being (2010)].
forced to confess guilt, or from being
induced by a promise of immunity or Art. 34. When a member of a city or
reward to make such confession, except municipal police force refuses or fails to
when the person confessing becomes a render aid or protection to any person in case
of danger to life or property, such peace
State witness;
officer shall be primarily liable for damages,
(10) Freedom from excessive fines, or cruel and the city or municipality shall be
and unusual punishment, unless the subsidiarily responsible therefor. The civil
same is imposed or inflicted in action herein recognized shall be
accordance with a statute which has not independent of any criminal proceedings,
been judicially declared and a preponderance of evidence shall
unconstitutional; and suffice to support such action.
(11) Freedom of access to the courts.
Art. 35. When a person, claiming to be
injured by a criminal offense, charges
In any of the cases referred to in this article, another with the same, for which no
whether or not the defendant's act or independent civil action is granted in this
omission constitutes a criminal offense, the Code or any special law, but the justice of the
aggrieved party has a right to commence an peace finds no reasonable grounds to believe
entirely separate and distinct civil action for that a crime has been committed, or the
damages, and for other relief. Such civil prosecuting attorney refuses or fails to
action shall proceed independently of any institute criminal proceedings, the complaint
criminal prosecution (if the latter be may bring a civil action for damages against
instituted), and mat be proved by a the alleged offender. Such civil action may
preponderance of evidence. be supported by a preponderance of
evidence. Upon the defendant's motion, the
The indemnity shall include moral damages. court may require the plaintiff to file a bond
Exemplary damages may also be to indemnify the defendant in case the
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was probably delayed because of the traffic, the circumstances of the case. Generally,
when in truth, no cake could be delivered nominal damages by their nature are small
because the order slip got lost. For such sums fixed by the court without regard to the
prevarication, petitioners must be held liable extent of the harm done to the injured party.
for nominal damages for insensitivity, However, it is generally held that a nominal
inadvertence or inattention to their damage is a substantial claim, if based upon
customer's anxiety and need of the hour the violation of a legal right; in such a case,
[Francisco v. Ferrer, supra]. the law presumes damage although actual or
compensatory damages are not proven
Nominal damages "are recoverable where a [Gonzales v. People, G.R. No. 159950 (2007)].
legal right is technically violated and must be
vindicated against an invasion that has
produced no actual present loss of any kind.”
Its award is thus not for the purpose of
indemnification for a loss but for the
recognition and vindication of a right. When
granted by the courts, they are not treated as
an equivalent of a wrong inflicted but simply
a recognition of the existence of a technical
injury. A violation of the plaintiff’s right, even
if only technical, is sufficient to support an
award of nominal damages. Conversely, so
long as there is a showing of a violation of the
right of the plaintiff, an award of nominal
damages is proper [Gonzales v. PCIB, G.R. No.
180257 (2011)].
Temperate damages are incompatible with B.1 WHERE THERE ARE RECEIPTS
nominal damages hence, cannot be granted PROVIDED AMOUNTING TO LESS THAN
concurrently [Citytrust Bank v. IAC (1994)]. P25,000
Anent the actual damages, we note that the
Temperate damages are included within the CA awarded P3,000.00 representing the
context of compensatory damages. [Tan v. amount spent for the embalming as shown
OMC Carriers, supra]. by the receipt. However, the prosecution also
presented a list of expenses such as those
The SC awarded temperate damages in lieu spent for the coffin, etc., which were not duly
of actual damages for loss of earning covered by receipt. If the actual damages,
capacity where earning capacity is plainly proven by receipts during the trial, amount to
established but no evidence was presented to less than P25,000.00, the victim shall be
support the allegation of the injured party’s entitled to temperate damages in the amount
actual income [Pleno v. CA, G.R. No. 56505 of P25,000.00, in lieu of actual damages. In
(1988)].
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UP LAW BOC DAMAGES CIVIL LAW
A. WHEN RECOVERABLE
be the proximate and direct cause of the (1) That the loss would have resulted in any
accident [Manila Electric v. Remonquillo, event because of the negligence or
supra]. omission of another, and where such
negligence or omission is the immediate
Both of the parties contributed to the and proximate cause of the damage or
proximate cause; hence, they cannot recover injury;
from one another [Bernardo v. Legaspi, supra]. (2) Defendant has done his best to lessen
the plaintiff’s injury or loss.
B.2 IN CONTRACTS, QUASI-CONTRACTS
AND QUASI-DELICTS The SC deemed CC 2215(2) inapplicable
where the harm done to private respondents
Art. 2215 In contracts, quasi-contracts, and
outweighs any benefits the plaintiffs may
quasi-delicts, the court may equitably
have derived from being transported to
mitigate the damages under circumstances
Tacloban instead of being taken to
other than the case referred to in the
Catbalogan, their destination and the vessel's
preceding article, as in the following
first port of call, pursuant to its normal
instances:
schedule [Sweet Lines v. CA (1983)].
(1) That the plaintiff himself has
contravened the terms of the contract;
C.4 RULE WHEN CONTRACTING PARTIES
(2) That the plaintiff has derived some
ARE IN PARI DELICTO
benefit as a result of the contract;
(3) In cases where exemplary damages are Generally, parties to a void agreement cannot
to be awarded, that the defendant acted expect the aid of the law; the courts leave
upon the advice of counsel; them as they are, because they are deemed in
(4) That the loss would have resulted in any pari delicto or "in equal fault." In pari delicto
event; is "a universal doctrine which holds that no
(5) That since the filing of the action, the action arises, in equity or at law, from an
defendant has done his best to lessen illegal contract; no suit can be maintained for
the plaintiff's loss or injury. its specific performance, or to recover the
property agreed to be sold or delivered, or the
money agreed to be paid, or damages for its
C. GROUNDS FOR MITIGATION OF violation; and where the parties are in pari
DAMAGES delicto, no affirmative relief of any kind will
be given to one against the other."
C.1 FOR CONTRACTS:
(1) Violation of terms of the contract by the This rule, however, is subject to exceptions
plaintiff himself; that permit the return of that which may have
(2) Obtention or enjoyment of benefit under been given under a void contract to:
the contract by the plaintiff himself; (a) the innocent party (Arts. 1411-1412, Civil
(3) Defendant acted upon advice of counsel Code);
in cases where exemplary damages are (b) the debtor who pays usurious interest
to be awarded such as under Articles (Art. 1413, Civil Code);
2230, 2231, and 2232; (c) the party repudiating the void contract
(4) Defendant has done his best to lessen before the illegal purpose is
the plaintiff’s injury or loss. accomplished or before damage is
caused to a third person and if public
C.2 FOR QUASI-CONTRACTS: interest is subserved by allowing
recovery (Art. 1414, Civil Code);
(1) In cases where exemplary damages are (d) the incapacitated party if the interest of
to be awarded such as in Art. 2232; justice so demands (Art. 1415, Civil
(2) Defendant has done his best to lessen Code);
the plaintiff’s injury or loss. (e) the party for whose protection the
prohibition by law is intended if the
C.3 FOR QUASI-DELICTS: agreement is not illegal per se but
merely prohibited and if public policy
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damages, none of which have been allowed C. DAMAGES THAT MUST STAND
in this case, for reasons herein before ALONE
discussed [Francisco v. GSIS (1963)].
C.1 NOMINAL DAMAGES
There was, therefore, no legal basis for the Art. 2223. The adjudication of nominal
award of exemplary damages since the damages shall preclude further contest upon
private respondent was not entitled to moral, the right involved and all accessory
temperate, or compensatory damages and questions, as between the parties to the suit,
there was no agreement on stipulated or their respective heirs and assigns.
damages [Scott Consultants & Resource
Development Corp. v. CA (1995)].
CIVIL LAW
PRIVATE
INTERNATIONAL
LAW
D. SOURCES
Public Private
International International • Codes and Statutes
Law Law
• Treaties and International Conventions
Persons States and Individuals or
involved internationally corporations • Treatises, Commentaries and Studies of
recognized Learned Societies
organizations • Judicial Decisions
Transactions States in their Private
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UP LAW BOC PRIVATE INTERNATIONAL LAW CIVIL LAW
C.2 DEPECAGE
Characterization
The process by which a court at the beginning
of the choice-of-law process assigns a
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(1) AGE: Must not be less than 21 years of • Where Philippine history, government
age on the date of the hearing of the and civics are taught and prescribed as
petition; part of school curriculum;
(2) RESIDENCE: Must have resided in the • During the entire period of the residence
Philippines for a continuous period of not required
less than 10 years;
• Prior to the hearing of petition for
May be reduced to 5 years in the naturalization
following cases:
• Applicant honorably held office under the
government of the Philippines or any of Disqualifications
the provinces, cities, municipalities or Naturalization is a privilege and not a right.
political subdivisions; The law must be strictly construed against
• Established a new industry or introduced the applicant.
a useful invention in the Philippines; (1) Commission of a crime involving moral
turpitude
• Married to a Filipino woman;
(2) Not receiving and dealing with Filipinos
• Had been engaged as a teacher in a in his home or visiting Filipino homes in
public or recognized private school not the community in a spirit of friendship,
established for exclusive instruction of friendliness and equality without any
children particular nationality or race in discrimination.
any of the branches of education or
industry for a period of 2 years; (3) Applicant’s country does not grant
reciprocal rights to Filipino citizens at the
• Born in the Philippines time of the hearing of his application.
(3) CHARACTER
• Must be of good moral character; Procedure [Com. Act No. 473]
• Must believe in the principles underlying (1) Declaration of intention to become a
the Philippine Constitution; and citizen must be filed 1 year prior to the
filing of petition, unless the applicant is
• Must have conducted himself in a proper
exempted:
and irreproachable manner during the
entire period of his residence in the • Born in the Philippines and received their
Philippines primary and secondary education in
(4) PROPERTY public or private schools recognized by
the Government not limited to any race or
• Must own real estate in the Philippines nationality;
worth not less than P5000; or
• Resided continuously for 30 years or
• Must have some lucrative trade, more before filing of application;
profession or lawful occupation
• Widow and minor children of an alien
(5) LANGUAGE: Must be able to speak and who declared his intention to become
write English or Spanish and any one of citizen and dies before naturalization.
the principal Philippine languages
(2) Petition for naturalization must be filed.
(6) CHILDREN:
(3) The petition will be heard after
• Enrolled his minor children of school age publication in the Official Gazette or
in any of the public or private schools newspaper of general publication.
recognized by the Bureau of Private
(4) If the petition is approved, there will be a
Schools;
rehearing 2 years after the promulgation
of the judgment awarding naturalization
(5) Taking of the oath of allegiance to (5) By having been declared by competent
support and defend the Constitution and authority, a deserter of the Philippine
the laws of the Philippines armed forces in time of war, unless
pardoned;
(6) By marriage of a woman to a foreigner, if
Derivative Citizenship [Sec. 15, Com. Act No.
by virtue of the laws of her husband’s
473]
country, she acquires nationality;
(1) Wife shall be deemed a citizen if she is:
(7) By cancellation of the certificate of
• Any woman now of may hereafter be naturalization
married to a citizen of the Philippines;
• It was obtained fraudulently or illegally;
and
• Person naturalized shall return to his
• Might herself be lawfully naturalized.
native country or to some foreign country
(2) Minor children born in the Philippines and establish his permanent residence
shall be considered citizens; therein within 5 years from the issuance
of the certificate;
(3) FOREIGN-BORN minor children
• Petition was made on an invalid
• IN THE PHILIPPINES at the time of
declaration of intention;
naturalization: shall automatically
become Philippine citizens; • Minor children failed to graduate from
the schools required through the fault of
• NOT IN THE PHILIPPINES at the time of
their parents either by neglect to support
naturalization: deemed a Filipino citizen
them or by transfer to another school;
only during his minority. Unless, he
begins to reside permanently in the • Naturalized citizen allowed himself to be
Philippines when still a minor. used as a dummy
(4) FOREIGN-BORN children AFTER
NATURALIZATION are considered
citizens if: A.3. PROBLEMS IN APPLYING
NATIONALITY PRINCIPLE
• He registers himself as a Philippine
i. Dual or Multiple Citizenship
citizen; and
An individual can be claimed as a national of
• Take the necessary oath of allegiance; 2 or more states pursuant to the rule that
• Within 1 year from reaching the age of each State determine who its own nationals
majority are. [Hague Convention on Conflict of National
Laws]
Examples:
Loss of Citizenship
• Child born of parents who are nationals
(1) By naturalization in foreign countries; of a country applying jus sanguinis in a
(2) By express renunciation of citizenship; country applying jus soli principle;
(3) By subscribing to an oath of allegiance to • Citizen who marries an alien may acquire
support the constitution or laws of a the citizenship of his/her spouse if the
foreign country upon attaining 21 years of spouse’s national law allows
age or more, subject to certain
o Not followed under Philippine
exceptions;
law – Filipino spouse retains
(4) By rendering service to, or accepting Philippine citizenship unless by
commission in the armed forces of a his or her act or omission, he/she
foreign country, subject to certain is deemed to have renounced it
exceptions;
ii. Statelessness
• Domicile of choice
Capacity
o Voluntary domicile, freely chosen
by a person sui juris The union of the following produces complete
civil capacity:
o Acquired by the concurrence of
physical presence in the new • Juridical capacity – the fitness of a man to
place and unqualified intention to be the subject of legal relations.
make that place one’s home
• Capacity to act – the power to do acts
• Constructive domicile with juridical effects.
By operation of law, a domicile is assigned to
a person legally incapable of choosing their C.2. LEGISLATIVE JURISDICTION
own domicile. Included are minors, and the DISTINGUISHED FROM JUDICIAL
mentally disabled. JURISDICTION
Status, once established by the personal law
of the party, is given UNIVERSAL
C. PRINCIPLES ON PERSONAL STATUS RECOGNITION.
AND CAPACITY
A. CHOICE-OF-LAW IN FAMILY
C.5. NAME RELATIONS
General Rule: No person can change his
name or surname without judicial authority. Laws relating to family rights and duties, or
Exceptions (according to Jurisprudence): to the status, condition and legal capacity
of persons are binding upon citizens of the
(1) That the name is ridiculous or tainted Philippines, even though living abroad. [Art.
with dishonor or extremely difficult to 15, Civil Code]
pronounce.
(2) When the change is necessary to avoid
confusion This follows the principle of LEX NATIONALII.
(3) When the right to a new name is a
consequence of a change in status A.1. MARRIAGE
(4) A sincere desire to adopt a Filipino name
to erase signs of a former alien
nationality which unduly hamper social i. Philippine Policy on Marriage and the Family
and business life. In case of doubt, courts will apply FORUM
Whether an alien’s change of name is valid law because marriage is greatly influenced by
DEPENDS SOLELY ON HIS PERSONAL LAW. the values of society. (Prof. Elizabeth
Pangalangan)
This policy is expressed in various laws, e.g.:
C.6. AGE OF MAJORITY
Marriage, as an inviolable social institution,
Age of majority is determined by the
is the foundation of the family and shall be
individual’s personal law.
protected by the State. [Sec. 2, Art. XV of the
1987 Constitution]
C.7. CAPACITY
• Capacity to act is governed by his In case of doubt, all presumptions favor the
personal law. solidarity of the family. Thus, every
intendment of law or facts leans toward the
• The incapacities attached to his legal validity of marriage, the indissolubility of
status go with him wherever he is. the marriage bonds, the legitimacy of
children, the community of property during
the marriage, the authority of parents over
their children, and the validity of defense
for any member of the family in case of
unlawful aggression. [Art. 220, Civil Code]
B.2. CAPACITY TO TRANSFER OR ACQUIRE that the law which governs the contract
PROPERTY from which the debt arises shall also
govern the transfer of the debt.
Real property – governed by the law of the
place where the property is located iv. Corporate Shares of Stock
• For tax purposes – domicile of the
B.3. EXTRINSIC AND INTRINSIC VALIDITY corporation
OF CONVEYANCES • For sale – place where the title to the
Formalities and effects of conveyance – goods passes from the seller to the buyer
governed by LEX SITUS. The validity and
effect of conveyance of property are treated
as a question of property rather than contract. C. CHOICE OF LAW IN CONTRACTS
• The transaction does not affect transfer LEX LOCI CELEBRATIONIS [Art. 17, Civil Code]
of title to/ownership of the land – LEX
INTENTIONIS or LEX VOLUNTATIS
C.2. INTRINSIC VALIDITY OF CONTRACTS
• Contracts where real property is offered
by way of a security for the performance i. Lex Loci Contractus
of an obligation such as a loan. • Law of the place of making.
o LOAN – covered by rules on • Looks into where “the last act is done
ordinary contracts which is necessary to bring the binding
o MORTGAGE – LEX SITUS agreement into being so far as the acts of
the parties are concerned.”
• Testate or intestate succession and
capacity to succeed – LEX NATIONALII
ii. Lex Loci Solutionis
B.5. SITUS OF CERTAIN PROPERTIES Law of the place of performance governs all
i. Situs of Personal Property for Tax Purposes matters relating to the:
(d) If such measures are necessary for • 4 Theories: [Bank of Augusta v. Earle, 38
the suppression of illicit traffic in U.S. 519, 1839]
narcotic drugs or psychotropic o A corporation has no legal status
substances. beyond the bounds of sovereignty
within which it was created
• Fixes the domicile of the corporation and (2) Provisions which fix the relations
determines the capacity to enter into liabilities, responsibilities or duties of
certain contracts stockholders, members, or officers of
the corporation
ii. Exceptions to the Rule of Incorporation Test
• Service upon foreign corporations doing
Constitutional and Statutory Restrictions business in the Philippines may be made
A state may exclude a foreign corporation on: [Rule 14, Section 14, Rules of Court]
from doing business within its territory, or o Resident agent
prescribe any conditions as a prerequisite.
o If none:
▪ Government official designated by
Control Test During War law;
Courts may pierce the veil of corporate ▪ Any of its officers or agent within
identity and look into the nationality of the the Philippines
controlling stockholders to determine the
“citizenship” of the corporation ▪ Summons through diplomatic
channels
(2) Action to Protect Trademark, Trade Name, (4) Appointing a representative or distributor
Goodwill, Patent or for Unfair domiciled in the Philippines which
Competition transacts business in its own name and
for its own accounts
Based on equity considerations
(5) Publication of general advertisement
(3) Agreements Fully Transacted Outside the through any media
Philippines
(6) Maintaining of stocks of goods in the
The transaction must be wholly Philippines solely for the purpose of
celebrated and consummated abroad. having the same processed by another
(4) Counterclaim entity
Petition filed is merely a corollary defense (7) Consignment of equipment with a local
in a suit against it. company to be used in the processing of
products for export
(8) Collecting information in the Philippines
vii. Definition and Scope of “Transacting
Business” (9) Services auxiliary to an existing isolated
contract of sale which are not on a
i. Under the Foreign Business Registration continuing basis
Act and Foreign Investments Act, acts that
constitute DOING BUSINESS includes:
F.2. PARTNERSHIPS
(1) Soliciting orders, service contracts,
opening offices Governing Law
A.3. POLICIES UNDERLYING RECOGNITION iii. Judgment must be FINAL and EXECUTORY
AND ENFORCEMENT to constitue res judicata in another action
A foreign judgment that is merely
interlocutory or provisional, contemplating a
Res judicata
fuller investigation leading to a later final
A matter already settled cannot be relitigated. decision, creates no obligation on the forum
court to recognize or enforce it. (i.e. support
• Those who have contested an issue shall
and custody)
be bound by the result of the contest
• Matters once tried and decided with
finality in one jurisdiction shall be iv. PRECIPROCITY) State where foreign
considered as settled between the parties judgment was obtained allows recognition or
enforcement of Philippine judgements
• Prevents parties from litigating issues
that have been determined by a valid Reiteration of international comity
local judgment
Under Philippine law: [Rule 39, Section 40, v. Judgment must be for a fixed sum of money
Rules of Court]
Foreign judgment must specify performance
• Judgment or final order upon a SPECIFIC or delivery, otherwise, there is nothing for the
THING – renders it conclusive upon the forum court to enforce.
title to the thing
• Judgment against a PERSON –
vi. Judgment must NOT be CONTRARY to the
presumptive evidence of a right between
PUBLIC POLICY or GOOD MORALS of the
parties and their successors in interest.
country where it is to be enforced
place of conduct
For crimes LEX LOCI DELICTI
CORPORATIONS AND JURIDICAL ENTITIES
Personal law of Place of incorporation
corporations (domicile)