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Civil Law Reviewer
Civil Law Reviewer
Civil Law Reviewer
After 15 days following the completion of its publication in the Official Gazette, or
in a newspaper of general circulation, unless it is otherwise provided.1
C. Retroactivity of Laws
Acts which are contrary to mandatory or prohibitory laws are void, except
when the law itself authorizes its validity.4
1
Art. 2
This refers to the 15-day period and not to the requirement of publication. (Tanada vs. Tuvera, G.R.No.
L-63915, Dec. 29, 1986)
Administrative rules and regulations must also be published if their purpose is to enforce or
implement existing laws pursuant to a valid delegation. The publication must be in full or it is no
publication at all since its purpose is to inform the public of the contents of the law. (Phil. Intl Trading
Corp. vs .Angeles)
2
Art. 3
Considered a conclusive presumption and applies only to mandatory and prohibitory laws. (Consunji vs.
CA)
Philippine laws are covered. There is no conclusive presumption of knowledge of foreign laws. Even
our courts cannot take judicial notice of them. Ignorance of a foreign law will not be a mistake of law
but a mistake of fact.
Ignorance may either be of law or of fact. Ignorance of fact (ignorantia facti) may excuse a party from
the legal consequences of his conduct; but not ignorance of law, for ignorantia juris neminem excusat.
In specific instances provided by law, mistake as to difficult legal questions has been given the same
effect as a mistake of fact, e.g., Art. 526, par. 3 which provides: "Mistake upon a doubtful or difficult
question of law may be the basis of good faith."
3
Art. 4
4
Art. 5
1
E. Waiver of Rights
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.5
F. Repeal of Laws
Laws are repealed only by subsequent ones, either expressly or impliedly. Their
violation or non-observance shall not be excused by disuse, custom or practice to the
contrary.
When the courts declared a law to be inconsistent with the Constitution, the former
shall be void and the latter shall govern.
Administrative or executive acts, orders and regulations shall be valid only when
they are not contrary to the laws or the Constitution.6
G. Judicial Decisions
Judicial decisions applying or interpreting the laws or the Constitution shall form a
part of the legal system of the Philippines.7
5
Art. 6
6
Art. 7
7
Art. 8
Only Supreme Court decisions establish jurisprudence; decisions of other judicial or quasi-judicial
bodies are merely persuasive.
This principle, however, does not mean blind adherence. The duty of the Court is to abandon any
doctrine found to be in violation of the law in force.
8
Art. 9
This article does not apply to criminal prosecutions, bec. when there is no law punishing an act, the
case must be dismissed, however, reprehensible the act may seem to the judge (Tolentino).
If the law is vague or obscure, the court should clarify it in the light of the rules of statutory
construction; it is silent or insufficient, the court should fill the deficiency by resorting to customs or
general principles of law.
2
I. Presumption and Applicability of Custom
Customs which are contrary to law, public order or public policy shall not be
countenanced.10
J. Legal Periods
When the laws speak of years, months, days or nights, it shall be understood that
years are of three hundred sixty-five days each; months, of thirty days; days, of twenty-four
hours; and nights from sunset to sunrise.
If months are designated by their name, they shall be computed by the number of
days which they respectively have.
In computing a period, the first day shall be excluded, and the last day included12
Penal laws and those of public security and safety shall be obligatory upon all who
live or sojourn in Philippine territory, subject to the principles of public international law
and to treaty stipulations.13
9
Art. 10
10
Art. 11
11
Art. 12
Custom is defined as "a rule of conduct formed by repetition of acts, uniformly observed (practiced)
as a social rule, legally binding and obligatory." The law requires that "a custom must be proved as a
fact, according to the rules of evidence." On this score the Court had occasion to state that "a local
custom as a source of right cannot be considered by a court of justice unless such custom is properly
established by competent evidence like any other fact." The same evidence, if not one of a higher
degree, should be required of a foreign custom
12
Art. 13
Superseded by Sec. 31, Book I of EO 292 (Administrative Code of 1987) w/c provides that
Sec. 31. Legal Periods.-- "Year" shall be understood to be twelve (12) calendar months; "months" of
thirty (30) days, unless it refers to a specific calendar month in which case it shall be computed
according to the number of days the specific month contains; "day," to a day of twenty four (24) hours;
and "nights," from sunset to sunrise.
This article applies only to legal provisions and not to contracts, where the parties may stipulate on
the manner of computing years, months and days (Baviera).
13
Art. 14
3
L. Conflict of Laws
Laws relating to family rights and duties, or to the status, condition and legal
capacity of persons are binding upon citizens of the Philippines, even though living
abroad.14
Real property as well as personal property is subject to the law of the country
where it is situated.15
However, intestate and testamentary successions, both with respect to the order of
succession and to the amount of successional rights and to the intrinsic validity of
testamentary provisions, shall be regulated by the national law of the person whose
succession is under consideration, whatever may be the nature of the property and
regardless of the country wherein said property may be found.16
The forms and solemnities of contracts, wills, and other public instruments shall be
governed by the laws of the country in which they are executed.17
When the acts referred to are executed before the diplomatic or consular officials
of the Republic of the Philippines in a foreign country, the solemnities established by
Philippine laws shall be observed in their execution.18
14
Art. 15
Theories on Personal Law.--
Domiciliary theory, followed in the US, according to w/c the personal laws of a person are determined
by his domicile.
Nationality theory w/c makes nationality or citizenship as the basis for determining the personal laws
of an individual. (Tolentino)
The question of how a citizen may strip himself of the status as such citizen is governed by his
national law.
15 st
Art. 16, 1 par.
The lex situs or lex rei sitae governs real or personal property.
16 nd
id., 2 par.
Can be invoked only when the deceased was vested w/ a descendible interest in prop. w/in the
jurisdiction of the Phils.
The intrinsic validity of the provisions of the will of a foreigner who dies in the Phils. is to be
determined by the laws of his own state or country, and not by those of the Phils. Thus, a condition in a
will of a foreigner that his legatee respect his order that his prop. be distributed according to the laws of
the Phils. instead of the laws of his own country, was held illegal and considered as not written.
The law governing succession may be considered from the point of view of (a) the execution of wills,
and (b) the distribution of property. The formalities of execution of will are generally governed by the
law of the place of execution (Art. 17, par. 1.) But the distribution of the estate is governed by the law
of the nation of the deceased.
17 st
Art. 17, 1 par., known as the lex loci celebrationis
18 nd
id, 2 par.
4
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.19
In matters which are governed by the Code of Commerce and special laws, their
deficiency shall be supplied by the provisions of the Civil Code.20
19 rd
Id., 3 par.
20
Art. 18
5
II. Human Relations New Civil Code
Every person must, in the exercise of his rights and in the performance of his
duties, act with justice, give everyone his due, and observe honesty and good faith.21
Any person who wilfully causes loss or injury to another in a manner that is
contrary to morals, good customs or public policy shall compensate the latter for the
damage.23
Every person who through an act of performance by another, or any other means,
acquires or comes into possession of something at the expense of the latter without just or
legal ground, shall return the same to him.24
PERSONS
A. Capacity to Act
1. Civil Personality26
Juridical capacity, which is the fitness to be the subject of legal relations, is inherent
in every natural person and is lost only through death.
Capacity to act, which is the power to do acts with legal effect, is acquired and may
be lost.27
21
Art. 19
Principle of abuse of rights
22
Art. 20
23
Art. 21
24
Art. 22
25
Civil Code
26
Aptitude of being the subject, active or passive, of rights and obligations
27
Art. 37
Capacity may be (1) juridical capacity, and (2) capacity to act. The union of these 2 forms the full civil
capacity. Juridical capacity is synonymous to legal capacity and to personality. They all refer to the
aptitude for the holding and enjoyment of rights. On the other hand, capacity to act refers to the
aptitude for the exercise of rights, and is often referred to merely as "capacity."
6
2. Restrictions on Capacity to Act
Minority, insanity or imbecility, the state of being a deaf-mute, prodigality and civil
interdiction are mere restrictions on capacity to act, and do not exempt the incapacitated
person from certain obligations, as when the latter arise from his acts or from property
relations, such as easements.28
The following circumstances, among others, modify or limit capacity to act: age,
insanity, imbecility, the state of being a deaf-mute, penalty, prodigality, family relations,
alienage, absence, insolvency and trusteeship. Capacity to act is not limited on account of
religious belief or political opinion.
A married woman, eighteen (18) years of age or over, is qualified for all acts of civil
life, except in cases specified by law.29
3. Birth
Determines personality; but the conceived child shall be considered born for all
purposes that are favorable to it, provided it be born later with certain conditions.30
For civil purposes, the foetus is considered born if it is alive at the time it is
completely delivered from the mother's womb. However, if the foetus had an intrauterine
life of less than seven months, it is not deemed born if it dies within twenty-four hours
after its complete delivery from the maternal womb.31
4. Death
Civil personality is extinguished by death. The effect of death upon the rights and
obligations of the deceased is determined by law, by contract and by will.32
28
Art. 38
29
Art. 39
30
Art. 40
Personality from Birth - Birth means the removal of the foetus from the mother's womb.
Conceived Child.-- The personality of the conceived child has 2 characteristics: (1) it is essentially
limited, bec. it is only for purposes favorable to the child, and (2) it is provisional or conditional, bec. it
depends upon the child being born alive later, such that if it is not born alive, its personality disappears
as if it had never existed.
For civil personality to be acquired, one must be born.-- A foetus is born after it is completely
separated from the mother's womb w/c is produced by the cutting of the umbilical cord; after the
separation, the child now survives by itself.
31
Art. 41
Once birth occurs, personality for favorable purposes retroacts from the moment of conception.--
The retroactivity rule is qualified-- only for purposes favorable to the child.
32
Art. 42
Physical death and legal death are the same. (Balane)
7
a. Compare Art. 43 with Rule 131, Sec. 3 (jj)
presumption of Survivorship
Two or more persons, called to succeed When two persons perish in the same
each other, shall be presumed to have died calamity34 and it is not shown who died first,
at the same time, subject to the following and there are no particular circumstances
conditions: from which it can be inferred, the
survivorship35 is determined from the
1. parties are heirs to one another probabilities resulting from the strength and
the age of the sexes, according to the
2. no proof as to who died first following rules:
3. with doubt as to who died first 1. If both were under the age of fifteen
years, the older is deemed to have survived;
Article 43 applies when the parties are called to succeed each other. But if the
parties are not called to succeed each other, Rule 131, Sec. 3 (jj) of the Rules of Court
applies. Both are to be applied only in the absence of facts.
33
If there is a doubt, as between two or more persons who are called to succeed each other, as to which
of them died first, whoever alleges the death of one prior to the other, shall prove the same; in the
absence of proof, it is presumed that they died at the same time and there shall be no transmission of
rights from one to the other.
34
such as wreck, battle, or conflagration
35
except for purposes of succession
8
5. Juridical Persons
(2) Other corporations, institutions and entities for public interest or purpose,
created by law; their personality begins as soon as they have been constituted according to
law;
Juridical persons mentioned in Nos. 1 and 2 are governed by the laws creating or
recognizing them.
Partnerships and associations for private interest or purpose are governed by the
provisions of this Code concerning partnerships.38
Juridical persons may acquire and possess property of all kinds, as well as incur
obligations and bring civil or criminal actions, in conformity with the laws and regulations
of their organization.39
For the exercise of civil rights and the fulfillment of civil obligations, the domicile
of natural persons is the place of their habitual residence.40
36
Art. 44.
37
B.P. 68
38
Art. 45
39
Art. 46
40
Art. 50.
Requisites of Domicile:
(1) physical presence;
(2) animus manendi (intent to remain) (Gallego v. Vera, 73 P 453.)
Three kinds of Domicile:
(1) Domicile of Origin.-- Domicile of the parents of a person at the time he was born
(2) Domicile of Choice.-- Domicile chosen by a person to change his original domicile. Aside from the
2 requisites mentioned above, a third requisite must be present in domicile of choice, animus non
revertendi (intention not to return to one's old domicile as his permanent place.)
(3) Domicile by Operation of Law.-- e.g., Art. 69, FC.
Domicile is not the same as residence. Domicile is residence plus habituality.
Importance of Understanding Domicile.-- In case of revocation of wills (Art. 829), place of performance
of obligation (Art. 1251, par. 3), renvoi (Aznar v. Garcia)
9
When the law creating or recognizing them, or any other provision does not fix the
domicile of juridical persons, the same shall be understood to be the place where their legal
representation is established or where they exercise their principal functions.41
Domicile Residence
Denotes a fixed permanent residence, which Used to indicate a place of abode, whether
when absent, one has the intention of permanent or temporary
returning
There can be several places of residence
There can only be one place of domicile
Not domicile
Residence coupled with the intention to
remain for an unlimited time
41
Art. 51.
10
II. Marriage Family Code42
A. Nature of Marriage
A special contract of permanent union between a man and a woman entered into in
accordance with law for the establishment of conjugal and family life. It is the foundation
of the family and an inviolable social institution whose nature, consequences, and incidents
are governed by law and not subject to stipulation, except that marriage settlements may fix
the property relations during the marriage.43
B. Requisites
1. Kinds of Requisites
Essential Formal
(1) Legal capacity of the contracting (1) Authority of the solemnizing officer;
parties;44 and
(2) A valid marriage license;46 and
(2) Consent freely given in the presence of
the solemnizing officer.45 (3) A marriage ceremony47
2. Essential requisites
a. Age49
Any male or female of the age of eighteen (18) years or upwards, not under any of
the impediments mentioned in Articles 37 and 38. 50
42
Aug. 3, 1988
43
Art. 1
44
Must be a male and a female
45
Art. 2
46
Except Marriages Exempted from License Requirement, infra
47
The appearance of the contracting parties before the solemnizing officer and their personal
declaration that they take each other as husband and wife in the presence of not less than two
witnesses of legal age (Art. 3)
48
Art. 4, except those solemnized by any person not legally authorized to perform marriages unless
such marriages were contracted with either or both parties believing in good faith that the solemnizing
officer had the legal authority to do so (Art. 35 (2)
49
Art. 5
11
b. Consent
3. Formal
(1) Any incumbent member of the judiciary within the court's jurisdiction;
(2) Any priest, rabbi, imam, or minister of any church or religious sect duly
authorized by his church or religious sect and registered with the civil registrar general,
acting within the limits of the written authority granted by his church or religious sect and
provided that at least one of the contracting parties belongs to the solemnizing officer's
church or religious sect;
(3) Any ship captain or airplane chief only in the case mentioned in Article 31;53
(4) Any military commander of a unit to which a chaplain is assigned, in the
absence of the latter, during a military operation, likewise only in the cases mentioned in
Article 32;54
(5) Any consul-general, consul or vice-consul in the case provided in Article 10.55
4. Ceremony
50
See Reference
51
The consent is real and not vitiated or rendered defective by any of the vices of consent. Hence, the
marriage may be annulled if the consent of either party was obtained by fraud, (Art. 45, par. 3), or if the
consent of either party was obtained by force, intimidation or undue influence (Art. 45, par. 4).
52
Art. 7
53
infra
54
Ibid.
12
In case of a marriage in articulo mortis, when the party at the point of death is unable
to sign the marriage certificate, it shall be sufficient for one of the witnesses to the marriage
to write the name of said party, which fact shall be attested by the solemnizing officer56
5. Solemnizing authority
The marriage shall be solemnized publicly in the chambers of the judge or in open
court, in the church, chapel or temple, or in the office the consul-general, consul or vice-
consul, and not elsewhere, except in cases of marriages contracted on the point of death or
in remote places in accordance with Article 2957 of this Code, or where both of the parties
request the solemnizing officer in writing in which case the marriage may be solemnized at
a house or place designated by them in a sworn statement to that effect.58
Marriages between Filipino citizens abroad may be solemnized by a consul-general,
consul or vice-consul of the Republic of the Philippines. The issuance of the marriage
license and the duties of the local civil registrar and of the solemnizing officer with regard
to the celebration of marriage shall be performed by said consular official.59
a. Exceptions60
6. License Required
A marriage license shall be issued by the local civil registrar of the city or
municipality where either contracting party habitually resides, except in marriages where no
license is required.62
The license shall be valid in any part of the Philippines for a period of one hundred
twenty (120) days from the date of issue, and shall be deemed automatically cancelled at the
expiration of the said period if the contracting parties have not made use of it. The expiry
date shall be stamped in bold characters on the face of every license issued.63
56
Art. 6
57
See reference
58
Art. 8; for Art. 7, supra
59
Art. 10
60
Art. 35 (2), infra
61
Art. 3 (2), except Marriages Exempted from License Requirement, supra
62
Art. 9, id.
Where a marriage license is required, each of the contracting parties shall file separately a sworn
application for such license with the proper local civil registrar. which shall specify the following:
(1) Full name of the contracting party;
(2) Place of birth;
(3) Age and date of birth;
(4) Civil status;
13
a. Foreign National
When either or both of the contracting parties are citizens of a foreign country, it
shall be necessary for them before a marriage license can be obtained, to submit a
certificate of legal capacity to contract marriage, issued by their respective diplomatic or
consular officials.
Stateless persons or refugees from other countries shall, in lieu of the certificate of
legal capacity herein required, submit an affidavit stating the circumstances showing such
capacity to contract marriage.64
b. Exceptions
In case either or both of the contracting parties are at the point of death, the
marriage may be solemnized without necessity of a marriage license and shall remain valid
even if the ailing party subsequently survives.65
A marriage in articulo mortis between passengers or crew members may also be
solemnized by a ship captain or by an airplane pilot not only while the ship is at sea or the
plane is in flight, but also during stopovers at ports of call.66
A military commander of a unit, who is a commissioned officer, shall likewise have
authority to solemnize marriages in articulo mortis between persons within the zone of
military operation, whether members of the armed forces or civilians.67
No license shall be necessary for the marriage of a man and a woman who have
lived together as husband and wife for at least five years and without any legal impediment
to marry each other. The contracting parties shall state the foregoing facts in an affidavit
before any person authorized by law to administer oaths. The solemnizing officer shall also
(5) If previously married, how, when and where the previous marriage was dissolved or annulled;
(6) Present residence and citizenship;
(7) Degree of relationship of the contracting parties;
(8) Full name, residence and citizenship of the father;
(9) Full name, residence and citizenship of the mother; and
(10) Full name, residence and citizenship of the guardian or person having charge, in case the
contracting party has neither father nor mother and is under the age of twenty-one years.
The applicants, their parents or guardians shall not be required to exhibit their residence certificates
in any formality in connection with the securing of the marriage license (Art. 11)
63
Art. 20
64
Art. 21
65
Art. 27
66
Art. 31
67
Art. 32
14
state under oath that he ascertained the qualifications of the contracting parties are found
no legal impediment to the marriage68
7. Marriage Certificate
The marriage certificate, in which the parties shall declare that they take each other
as husband and wife, shall also state:
(1) The full name, sex and age of each contracting party;
(2) Their citizenship, religion and habitual residence;
(3) The date and precise time of the celebration of the marriage;
(4) That the proper marriage license has been issued according to law69
(5) That either or both of the contracting parties have secured the parental consent
in appropriate cases;
(6) That either or both of the contracting parties have complied with the legal
requirement regarding parental advice in appropriate cases; and
(7) That the parties have entered into marriage settlement, if any, attaching a copy
70
thereof
C. Effect of Marriage celebrated abroad and foreign divorce71
All marriages solemnized outside the Philippines, in accordance with the laws in
force in the country where they were solemnized, and valid there as such, shall also be valid
in this country, except those prohibited under Articles 35 (1), (4), (5) and (6), 36, 37 and
38.72
68
Art. 34
69
except Marriages Exempted from License Requirement, supra
70
Art. 22
71
Art. 26
72
infra
15
D. Void and Voidable marriages
1. Void Marriages
The judgment of annulment or of absolute nullity of the marriage, the partition and
distribution of the properties of the spouses and the delivery of the children's presumptive
legitimes shall be recorded in the appropriate civil registry and registries of property;
otherwise, the same shall not affect third persons.73
Either of the former spouses may marry again after compliance with the foregoing
requirements; otherwise, the subsequent marriage shall be null and void.74
a. Absence of Requisites
(1) Contracted by any party below eighteen (18) years of age even with the consent
of parents or guardians;
(2) Solemnized by any person not legally authorized to perform marriages unless
such marriages were contracted with either or both parties believing in good faith that the
solemnizing officer had the legal authority to do so;
(5) Contracted through mistake of one contracting party as to the identity of the
other; and
b. Psychological incapacity
A marriage contracted by any party who, at the time of the celebration, was
psychologically incapacitated to comply with the essential marital obligations of marriage,
even if such incapacity becomes manifest only after its solemnization.78
73
Art. 52
74
Art. 53
75
except Marriages Exempted from License Requirement, supra
76
infra
77
Art. 35; Art. 53, infra
78
Art. 36
16
c. Incestous marriages
2. Prescription
The action or defense for the declaration of absolute nullity shall not prescribe.
In case of marriage celebrated before the effectivity of this Code and falling under
Article 36,80 such action or defense shall prescribe in ten (10) years after this Code shall
take effect.81
79
Art. 37
80
supra
81
Art. 39
17
3. Subsequent marriages
For the purpose of contracting the subsequent marriage under the preceding
paragraph, the spouse present must institute a summary proceeding for the declaration of
presumptive death of the absentee, without prejudice to the effect of reappearance of the
absent spouse.
(1) The children of the subsequent marriage conceived prior to its termination
shall be considered legitimate;
(2) The absolute community of property or the conjugal partnership, as the case
may be, shall be dissolved and liquidated, but if either spouse contracted said marriage in
82
Art. 40
83
The following shall be presumed dead for all purposes, including the division of the estate among the
heirs:
(1) A person on board a vessel lost during a sea voyage, or an aeroplane which is missing, who has not
been heard of for four years since the loss of the vessel or aeroplane;
(2) A person in the armed forces who has taken part in war, and has been missing for four years;
(3) A person who has been in danger of death under other circumstances and his existence has not
been known for four years.
84
Art. 41
85
Art. 42
18
bad faith, his or her share of the net profits of the community property or conjugal
partnership property shall be forfeited in favor of the common children or, if there are
none, the children of the guilty spouse by a previous marriage or in default of children, the
innocent spouse;
(3) Donations by reason of marriage shall remain valid, except that if the donee
contracted the marriage in bad faith, such donations made to said donee are revoked by
operation of law;
(4) The innocent spouse may revoke the designation of the other spouse who
acted in bad faith as beneficiary in any insurance policy, even if such designation be
stipulated as irrevocable; and
(5) The spouse who contracted the subsequent marriage in bad faith shall be
disqualified to inherit from the innocent spouse by testate and intestate succession86
If both spouses of the subsequent marriage acted in bad faith, said marriage shall
be void ab initio and all donations by reason of marriage and testamentary dispositions made
by one in favor of the other are revoked by operation of law.87
4. Annullable marriage
A marriage may be annulled for any of the following causes, existing at the time of
the marriage:
(1) The party in whose behalf it is sought to have the marriage annulled was
eighteen years of age or over but below twenty-one, and the marriage was solemnized
without the consent of the parents, guardian or person having substitute parental authority
over the party, in that order, unless after attaining the age of twenty-one, such party freely
cohabited with the other and both lived together as husband and wife;
(2) Either party was of unsound mind, unless such party after coming to reason,
freely cohabited with the other as husband and wife;
(3) The consent of either party was obtained by fraud, unless such party afterwards,
with full knowledge of the facts constituting the fraud, freely cohabited with the other as
husband and wife;
(4) The consent of either party was obtained by force, intimidation or undue
influence, unless the same having disappeared or ceased, such party thereafter freely
cohabited with the other as husband and wife;
86
Art. 43
87
Art. 44
19
(5) Either party was physically incapable of consummating the marriage with the
other, and such incapacity continues and appears to be incurable; or
5. Voidable marriages
The action for annulment of marriage must be filed by the following persons and
within the periods indicated:
(1) By the party whose parent or guardian did not give his or her consent, within
five (5) years after attaining the age of twenty-one, or by the parent or guardian or person
having legal charge of the minor, at any time before such party has reached the age of
twenty-one;90
(2) By the sane spouse, who had no knowledge of the other's insanity; or by any
relative or guardian or person having legal charge of the insane, at any time before the
death of either party, or by the insane spouse during a lucid interval or after regaining
sanity;91
(3) By the injured party, within five (5) years after the discovery of the fraud;92
88
Art. 45
89
Art. 46
90
No. 1 of Art. 45, supra
91
No. 2, id.
92
No. 3, id.
20
(4) By the injured party, within five (5) years from the time the force, intimidation
or undue influence disappeared or ceased;93
(5) By the injured party, within five (5) years after the marriage.94
6. Presence of prosecutor
7. Pendency of action
During the pendency of the action and in the absence of adequate provisions in a
written agreement between the spouses, the Court shall provide for the support of the
spouses and the custody and support of their common children. The Court shall give
paramount consideration to the moral and material welfare of said children and their
choice of the parent with whom they wish to remain. It shall also provide for appropriate
visitation rights of the other parent.96
8. Effects of nullity
The effects provided for by paragraphs (2), (3), (4) and (5) of Article 43 and by
Article 4497 shall also apply in the proper cases to marriages which are declared ab initio or
annulled by final judgment under Articles 40 and 45.98
The final judgment in such cases shall provide for the liquidation, partition and
distribution of the properties of the spouses, the custody and support of the common
children, and the delivery of third presumptive legitimes, unless such matters had been
adjudicated in previous judicial proceedings.
All creditors of the spouses as well as of the absolute community or the conjugal
partnership shall be notified of the proceedings for liquidation.
93
No. 4, id.
94
Nos. 5 & 6, id. (Art. 47)
95
Art. 48
96
Art. 49
97
supra
98
Ibid.
21
In the partition, the conjugal dwelling and the lot on which it is situated, shall be
adjudicated in accordance with the provisions of Articles 102 and 129.99
In said partition, the value of the presumptive legitimes of all common children,
computed as of the date of the final judgment of the trial court, shall be delivered in cash,
property or sound securities, unless the parties, by mutual agreement judicially approved,
had already provided for such matters.
The children or their guardian or the trustee of their property may ask for the
enforcement of the judgment.
The delivery of the presumptive legitimes shall in no way prejudice the ultimate
successional rights of the children accruing upon the death of either of both of the parents;
but the value of the properties already received under the decree of annulment or absolute
nullity shall be considered as advances on their legitime100
The judgment of annulment or of absolute nullity of the marriage, the partition and
distribution of the properties of the spouses and the delivery of the children's presumptive
legitimes shall be recorded in the appropriate civil registry and registries of property;
otherwise, the same shall not affect third persons.101
Either of the former spouses may marry again after compliance with the
requirements of the immediately preceding Article; otherwise, the subsequent marriage
shall be null and void.102
99
Art. 50; for Arts. 102 & 109, see Reference
100
Art. 51
101
Art. 52
102
Art. 53
103
supra
104
Art. 54
22
III. Legal Separation
A. Grounds
(1) Repeated physical violence or grossly abusive conduct directed against the
petitioner, a common child, or a child of the petitioner;
(2) Physical violence or moral pressure to compel the petitioner to change religious
or political affiliation;
(3) Attempt of respondent to corrupt or induce the petitioner, a common child, or
a child of the petitioner, to engage in prostitution, or connivance in such corruption or
inducement;
(4) Final judgment sentencing the respondent to imprisonment of more than six
years, even if pardoned;
(5) Drug addiction or habitual alcoholism of the respondent;
(6) Lesbianism or homosexuality of the respondent;
(7) Contracting by the respondent of a subsequent bigamous marriage, whether in
the Philippines or abroad;
(8) Sexual infidelity or perversion;
(9) Attempt by the respondent against the life of the petitioner; or
(10) Abandonment of petitioner by respondent without justifiable cause for more
than one year.
The term "child" shall include a child by nature or by adoption.105
B. Defenses
(1) The aggrieved party has condoned the offense or act complained of;
(2) The aggrieved party has consented to the commission of the offense or act
complained of;
(3) There is connivance between the parties in the commission of the offense or act
constituting the ground for legal separation;
(4) Both parties have given ground for legal separation;
(5) There is collusion between the parties to obtain decree of legal separation; or
105
Art. 55; see also R. A. 9262, Anti-Violence Against Women and Children
23
(6) The action is barred by prescription106
An action for legal separation shall be filed within five (5) years from the time of
the occurrence of the cause.107
C. Cooling-off Period
An action for legal separation shall in no case be tried before six (6) months shall
have elapsed since the filing of the petition.108
D. Reconciliation efforts
No legal separation may be decreed unless the Court has taken steps toward the
reconciliation of the spouses and is fully satisfied, despite such efforts, that reconciliation is
highly improbable.109
E. Confession of Judgment
In any case, the Court shall order the prosecuting attorney or fiscal assigned to it to
take steps to prevent collusion between the parties and to take care that the evidence is not
fabricated or suppressed.110
The court, in the absence of a written agreement between the spouses, shall
designate either of them or a third person to administer the absolute community or
conjugal partnership property. The administrator appointed by the court shall have the
same powers and duties as those of a guardian under the Rules of Court.111
106
Art. 56
107
Art. 57
108
Art. 58
109
Art. 59
110
Art. 60
111
Art. 61
24
G. Effects of pendency
The provisions of Article 49112 shall apply to the support of the spouses and the
custody and support of the common children.113
(1) The spouses shall be entitled to live separately from each other, but the
marriage bonds shall not be severed;
(2) The absolute community or the conjugal partnership shall be dissolved and
liquidated but the offending spouse shall have no right to any share of the net profits
earned by the absolute community or the conjugal partnership, which shall be forfeited in
accordance with the provisions of Article 43(2);114
(3) The custody of the minor children shall be awarded to the innocent spouse,
subject to the provisions of Article 213115 of this Code; and
(4) The offending spouse shall be disqualified from inheriting from the innocent
spouse by intestate succession. Moreover, provisions in favor of the offending spouse
made in the will of the innocent spouse shall be revoked by operation of law.
After the finality of the decree of legal separation, the innocent spouse may revoke
the donations made by him or by her in favor of the offending spouse, as well as the
designation of the latter as beneficiary in any insurance policy, even if such designation be
stipulated as irrevocable. The revocation of the donations shall be recorded in the registries
of property in the places where the properties are located. Alienations, liens and
encumbrances registered in good faith before the recording of the complaint for
revocation in the registries of property shall be respected. The revocation of or change in
the designation of the insurance beneficiary shall take effect upon written notification
thereof to the insured
The action to revoke the donation must be brought within five (5) years from the
time the decree of legal separation become final.116
112
supra
113
Art. 62
114
supra
115
See Reference
116
Art. 64
25
I. Reconciliation
Consequences:
(1) The legal separation proceedings, if still pending, shall thereby be terminated at
whatever stage; and
(2) The final decree of legal separation shall be set aside, but the separation of
property and any forfeiture of the share of the guilty spouse already effected shall subsist,
unless the spouses agree to revive their former property regime.
The court's order containing the foregoing shall be recorded in the proper civil
registries.118
The agreement to revive the former property regime shall be executed under oath
and shall specify:
The recording of the ordering in the registries of property shall not prejudice any
creditor not listed or not notified, unless the debtor-spouse has sufficient separate
properties to satisfy the creditor's claim.119
117
Art. 65
118
Art. 66
119
Art. 67
26
IV. Rights and Obligations Between Husband and Wife
A. Essential Obligations
The husband and wife are obliged to live together, observe mutual love, respect
and fidelity, and render mutual help and support.120
B. Family domicile
The husband and wife shall fix the family domicile. In case of disagreement, the
court shall decide.
The court may exempt one spouse from living with the other if the latter should
live abroad or there are other valid and compelling reasons for the exemption. However,
such exemption shall not apply if the same is not compatible with the solidarity of the
family.121
C. Support
The spouses are jointly responsible for the support of the family. The expenses for
such support and other conjugal obligations shall be paid from the community property
and, in the absence thereof, from the income or fruits of their separate properties. In case
of insufficiency or absence of said income or fruits, such obligations shall be satisfied from
the separate properties.122
D. Management of household
The right and the duty of both spouses. The expenses for such management shall
be paid in accordance with the provisions of Article 70.123
E. Effect of neglect of duty
120
Art. 68
121
Art. 69
122
Art. 70
123
Art. 71
124
Art. 72
27
F. Exercise of profession
The foregoing provisions shall not prejudice the rights of creditors who acted in
good faith.125
A. Marriage Settlements
In order that any modification in the marriage settlements may be valid, it must be
made before the celebration of the marriage, subject to the provisions of Articles 66, 67,126
128, 135 and 136.127
The marriage settlements and any modification thereof shall be in writing, signed
by the parties and executed before the celebration of the marriage. They shall not prejudice
third persons unless they are registered in the local civil registry where the marriage
contract is recorded as well as in the proper registries of properties.128
A minor who according to law may contract marriage may also execute his or her
marriage settlements, but they shall be valid only if the persons designated in Article 14 129
to give consent to the marriage are made parties to the agreement.130
For the validity of any marriage settlement executed by a person upon whom a
sentence of civil interdiction has been pronounced or who is subject to any other disability,
125
Art. 73
126
supra
127
Art. 76; see Reference for Arts. 128, 135-6
128
Art. 77
129
The father, mother, surviving parent or guardian, or persons having legal charge of them, in the order
mentioned.
130
Art. 78
28
it shall be indispensable for the guardian appointed by a competent court to be made a
party thereto131
(2) With respect to the extrinsic validity of contracts affecting property not situated
in the Philippines and executed in the country where the property is located; and
(3) With respect to the extrinsic validity of contracts entered into in the Philippines
but affecting property situated in a foreign country whose laws require different formalities
for its extrinsic validity.
Those which are made before its celebration, in consideration of the same, and in
favor of one or both of the future spouses.134
(1) If the marriage is not celebrated or judicially declared void ab initio except
donations made in the marriage settlements, which shall be governed by Article 81;136
131
Art. 79
132
Art. 80
133
Art. 81
134
Art. 82
135
Art. 83
136
supra
29
(2) When the marriage takes place without the consent of the parents or guardian,
as required by law;
(3) When the marriage is annulled, and the donee acted in bad faith;
(4) Upon legal separation, the donee being the guilty spouse;
(5) If it is with a resolutory condition and the condition is complied with;
(6) When the donee has committed an act of ingratitude as specified by the
provisions of the Civil Code on donations in general137
Donations by reason of marriage shall remain valid, except that if the donee
contracted the marriage in bad faith, such donations made to said donee are revoked by
operation of law;138
The effects provided for by paragraphs (2), (3), (4) and (5) of Article 43139 and by
Article 44140 shall also apply in the proper cases to marriages which are declared ab initio or
annulled by final judgment under Articles 40141 and 45.142
The final judgment in such cases shall provide for the liquidation, partition and
distribution of the properties of the spouses, the custody and support of the common
children, and the delivery of third presumptive legitimes, unless such matters had been
adjudicated in previous judicial proceedings.
All creditors of the spouses as well as of the absolute community or the conjugal
partnership shall be notified of the proceedings for liquidation.
In the partition, the conjugal dwelling and the lot on which it is situated, shall be
adjudicated in accordance with the provisions of Articles 102 and 129.143
137
Art. 86
138
Art. 43 (3)
139
See (3) Subsequent marriages, supra
140
supra
141
ibid
142
See (4) Annullable marriages, supra
143
Art. 50; see Reference for Arts. 102 & 129
144
Art. 87
30
D. Absolute Community of property
1. General Provisions
The future spouses may, in the marriage settlements, agree upon the regime of
absolute community, conjugal partnership of gains, complete separation of property, or any
other regime. In the absence of a marriage settlement, or when the regime agreed upon is
void, the system of absolute community of property as established in this Code shall
govern145
If the future spouses agree upon a regime other than the absolute community of
property, they cannot donate to each other in their marriage settlements more than one-
fifth of their present property. Any excess shall be considered void.146
When the waiver takes place upon a judicial separation of property, or after the
marriage has been dissolved or annulled, the same shall appear in a public instrument and
shall be recorded as provided in Article 77.150 The creditors of the spouse who made such
waiver may petition the court to rescind the waiver to the extent of the amount sufficient
to cover the amount of their credits.
145
Art. 75
146
Art. 84
147
Art. 85
148
Art. 88
149
Art. 89
150
See Reference
31
The provisions on co-ownership shall apply to the absolute community of property
between the spouses in all matters not provided for.151
Consist of all the property owned by the spouses at the time of the celebration of
the marriage or acquired thereafter.152
(1) Property acquired during the marriage by gratuitous title by either spouse, and
the fruits as well as the income thereof, if any, unless it is expressly provided by the donor,
testator or grantor that they shall form part of the community property;
(2) Property for personal and exclusive use of either spouse. However, jewelry shall
form part of the community property;
(3) Property acquired before the marriage by either spouse who has legitimate
descendants by a former marriage, and the fruits as well as the income, if any, of such
property.153
(1) The support of the spouses, their common children, and legitimate children of
either spouse; however, the support of illegitimate children shall be governed by the
provisions of this Code on Support;
(2) All debts and obligations contracted during the marriage by the designated
administrator-spouse for the benefit of the community, or by both spouses, or by one
spouse with the consent of the other;
(3) Debts and obligations contracted by either spouse without the consent of the
other to the extent that the family may have been benefited;
(4) All taxes, liens, charges and expenses, including major or minor repairs, upon
the community property;
151
Art. 90
152
Art. 91
153
Art. 92
154
Art. 93
32
(5) All taxes and expenses for mere preservation made during marriage upon the
separate property of either spouse used by the family;
(7) Antenuptial debts of either spouse insofar as they have redounded to the
benefit of the family;
(8) The value of what is donated or promised by both spouses in favor of their
common legitimate children for the exclusive purpose of commencing or completing a
professional or vocational course or other activity for self-improvement;
(9) Antenuptial debts of either spouse other than those falling under paragraph (7)
of this Article, the support of illegitimate children of either spouse, and liabilities incurred
by either spouse by reason of a crime or a quasi-delict, in case of absence or insufficiency
of the exclusive property of the debtor-spouse, the payment of which shall be considered
as advances to be deducted from the share of the debtor-spouse upon liquidation of the
community; and
(10) Expenses of litigation between the spouses unless the suit is found to be
groundless.
Whatever may be lost during the marriage in any game of chance, betting,
sweepstakes, or any other kind of gambling, whether permitted or prohibited by law, shall
be borne by the loser and shall not be charged to the community but any winnings
therefrom shall form part of the community property.156
The administration and enjoyment of the community property shall belong to both
spouses jointly. In case of disagreement, the husband's decision shall prevail, subject to
recourse to the court by the wife for proper remedy, which must be availed of within five
years from the date of the contract implementing such decision.
155
Art. 94
156
Art. 95
33
In the event that one spouse is incapacitated or otherwise unable to participate in
the administration of the common properties, the other spouse may assume sole powers of
administration. These powers do not include disposition or encumbrance without authority
of the court or the written consent of the other spouse. In the absence of such authority or
consent, the disposition or encumbrance shall be void. However, the transaction shall be
construed as a continuing offer on the part of the consenting spouse and the third person,
and may be perfected as a binding contract upon the acceptance by the other spouse or
authorization by the court before the offer is withdrawn by either or both offerors.157
Either spouse may dispose by will of his or her interest in the community
property.158
Neither spouse may donate any community property without the consent of the
other. However, either spouse may, without the consent of the other, make moderate
donations from the community property for charity or on occasions of family rejoicing or
family distress.159
(1) The spouse who leaves the conjugal home or refuses to live therein, without just
cause, shall not have the right to be supported;
(2) When the consent of one spouse to any transaction of the other is required by
law, judicial authorization shall be obtained in a summary proceeding;
(3) In the absence of sufficient community property, the separate property of both
spouses shall be solidarily liable for the support of the family. The spouse present shall,
upon proper petition in a summary proceeding, be given judicial authority to administer or
encumber any specific separate property of the other spouse and use the fruits or proceeds
thereof to satisfy the latter's share.161
157
Art. 96
158
Art. 97
159
Art. 98
160
Art. 99; see Reference for Arts. 134-138
161
Art. 100
34
If a spouse without just cause abandons the other or fails to comply with his or her
obligations to the family, the aggrieved spouse may petition the court for receivership, for
judicial separation of property or for authority to be the sole administrator of the absolute
community, subject to such precautionary conditions as the court may impose.
A spouse is deemed to have abandoned the other when her or she has left the
conjugal dwelling without intention of returning. The spouse who has left the conjugal
dwelling for a period of three months or has failed within the same period to give any
information as to his or her whereabouts shall be prima facie presumed to have no
intention of returning to the conjugal dwelling. 162
Procedure:
(1) An inventory shall be prepared, listing separately all the properties of the
absolute community and the exclusive properties of each spouse.
(2) The debts and obligations of the absolute community shall be paid out of its
assets. In case of insufficiency of said assets, the spouses shall be solidarily liable for the
unpaid balance with their separate properties in accordance with the provisions of the
second paragraph of Article 94.163
(3) Whatever remains of the exclusive properties of the spouses shall thereafter be
delivered to each of them.
(4) The net remainder of the properties of the absolute community shall constitute
its net assets, which shall be divided equally between husband and wife, unless a different
proportion or division was agreed upon in the marriage settlements, or unless there has
been a voluntary waiver of such share provided in this Code. For purpose of computing
the net profits subject to forfeiture in accordance with Articles 43, No. (2) and 63, No.
(2),164 the said profits shall be the increase in value between the market value of the
community property at the time of the celebration of the marriage and the market value at
the time of its dissolution.
162
Art. 101
163
supra
164
ibid
35
(5) The presumptive legitimes of the common children shall be delivered upon
partition, in accordance with Article 51.165
(6) Unless otherwise agreed upon by the parties, in the partition of the properties,
the conjugal dwelling and the lot on which it is situated shall be adjudicated to the spouse
with whom the majority of the common children choose to remain. Children below the age
of seven years are deemed to have chosen the mother, unless the court has decided
otherwise. In case there in no such majority, the court shall decide, taking into
consideration the best interests of said children.166
Upon the termination of the marriage by death, the community property shall be
liquidated in the same proceeding for the settlement of the estate of the deceased.
165
ibid
166
Art. 102
167
Art. 103
168
Art. 104
36
E. Conjugal Partnership of Gains
1. General Provisions
In case the future spouses agree in the marriage settlements that the regime of
conjugal partnership gains shall govern their property relations during marriage, the
provisions in this Chapter shall be of supplementary application.
The provisions shall also apply to conjugal partnerships of gains already established
between spouses before the effectivity of this Code, without prejudice to vested rights
already acquired in accordance with the Civil Code or other laws, as provided in Article
256.169
Under the regime of conjugal partnership of gains, the husband and wife place in a
common fund the proceeds, products, fruits and income from their separate properties and
those acquired by either or both spouses through their efforts or by chance, and, upon
dissolution of the marriage or of the partnership, the net gains or benefits obtained by
either or both spouses shall be divided equally between them, unless otherwise agreed in
the marriage settlements.170
The rules provided in Articles 88 and 89171 shall also apply to conjugal partnership
of gains.172
169
Art. 105; see Reference for Art. 256
170
Art. 106
171
supra
172
Art. 107
173
Art. 108
174
Art. 109
37
The spouses retain the ownership, possession, administration and enjoyment of
their exclusive properties.
Either spouse may, during the marriage, transfer the administration of his or her
exclusive property to the other by means of a public instrument, which shall be recorded in
the registry of property of the place the property is located.175
Property donated or left by will to the spouses, jointly and with designation of
determinate shares, shall pertain to the donee-spouses as his or her own exclusive property,
and in the absence of designation, share and share alike, without prejudice to the right of
accretion when proper.178
If the donations are onerous, the amount of the charges shall be borne by the
exclusive property of the donee spouse, whenever they have been advanced by the conjugal
partnership of gains.179
175
Art. 110
176
Art. 111
177
Art. 112
178
Art. 113
179
Art. 114
180
Art. 115
38
3. Conjugal Partnership Property
All property acquired during the marriage, whether the acquisition appears to have
been made, contracted or registered in the name of one or both spouses, is presumed to be
conjugal unless the contrary is proved.181
(1) Those acquired by onerous title during the marriage at the expense of the
common fund, whether the acquisition be for the partnership, or for only one of the
spouses;
(2) Those obtained from the labor, industry, work or profession of either or both
of the spouses;
(3) The fruits, natural, industrial, or civil, due or received during the marriage from
the common property, as well as the net fruits from the exclusive property of each spouse;
(4) The share of either spouse in the hidden treasure which the law awards to the
finder or owner of the property where the treasure is found;
(6) Livestock existing upon the dissolution of the partnership in excess of the
number of each kind brought to the marriage by either spouse; and
(7) Those which are acquired by chance, such as winnings from gambling or
betting. However, losses therefrom shall be borne exclusively by the loser-spouse.182
Property bought on installments paid partly from exclusive funds of either or both
spouses and partly from conjugal funds belongs to the buyer or buyers if full ownership
was vested before the marriage and to the conjugal partnership if such ownership was
vested during the marriage. In either case, any amount advanced by the partnership or by
either or both spouses shall be reimbursed by the owner or owners upon liquidation of the
partnership.183
181
Art. 116
182
Art. 117
183
Art. 118
184
Art. 119
39
The ownership of improvements, whether for utility or adornment, made on the
separate property of the spouses at the expense of the partnership or through the acts or
efforts of either or both spouses shall pertain to the conjugal partnership, or to the original
owner-spouse, subject to the following rules:
When the cost of the improvement made by the conjugal partnership and any
resulting increase in value are more than the value of the property at the time of the
improvement, the entire property of one of the spouses shall belong to the conjugal
partnership, subject to reimbursement of the value of the property of the owner-spouse at
the time of the improvement; otherwise, said property shall be retained in ownership by
the owner-spouse, likewise subject to reimbursement of the cost of the improvement.
In either case, the ownership of the entire property shall be vested upon the
reimbursement, which shall be made at the time of the liquidation of the conjugal
partnership.
(1) The support of the spouse, their common children, and the legitimate children
of either spouse;
(2) All debts and obligations contracted during the marriage by the designated
administrator-spouse for the benefit of the conjugal partnership of gains, or by both
spouses or by one of them with the consent of the other;
(3) Debts and obligations contracted by either spouse without the consent of the
other to the extent that the family may have benefited;
(4) All taxes, liens, charges, and expenses, including major or minor repairs upon
the conjugal partnership property;
(5) All taxes and expenses for mere preservation made during the marriage upon
the separate property of either spouse;
(7) Antenuptial debts of either spouse insofar as they have redounded to the
benefit of the family;
(8) The value of what is donated or promised by both spouses in favor of their
common legitimate children for the exclusive purpose of commencing or completing a
professional or vocational course or other activity for self-improvement; and
40
(9) Expenses of litigation between the spouses unless the suit is found to
groundless.
The payment of personal debts contracted by the husband or the wife before or
during the marriage shall not be charged to the conjugal properties partnership except
insofar as they redounded to the benefit of the family.
Neither shall the fines and pecuniary indemnities imposed upon them be charged
to the partnership.
However, the payment of personal debts contracted by either spouse before the
marriage, that of fines and indemnities imposed upon them, as well as the support of
illegitimate children of either spouse, may be enforced against the partnership assets after
the responsibilities enumerated in the preceding Article have been covered, if the spouse
who is bound should have no exclusive property or if it should be insufficient; but at the
time of the liquidation of the partnership, such spouse shall be charged for what has been
paid for the purpose above-mentioned.186
Whatever may be lost during the marriage in any game of chance or in betting,
sweepstakes, or any other kind of gambling whether permitted or prohibited by law, shall
be borne by the loser and shall not be charged to the conjugal partnership but any winnings
therefrom shall form part of the conjugal partnership property.187
The administration and enjoyment of the conjugal partnership shall belong to both
spouses jointly. In case of disagreement, the husband's decision shall prevail, subject to
recourse to the court by the wife for proper remedy, which must be availed of within five
years from the date of the contract implementing such decision.
185
Art. 121
186
Art. 122
187
Art. 123
41
and may be perfected as a binding contract upon the acceptance by the other spouse or
authorization by the court before the offer is withdrawn by either or both offerors.188
Neither spouse may donate any conjugal partnership property without the consent
of the other. However, either spouse may, without the consent of the other, make
moderate donations from the conjugal partnership property for charity or on occasions of
family rejoicing or family distress.189
The separation in fact between husband and wife shall not affect the regime of
conjugal partnership, except that:
(1) The spouse who leaves the conjugal home or refuses to live therein, without just
cause, shall not have the right to be supported;
(2) When the consent of one spouse to any transaction of the other is required by
law, judicial authorization shall be obtained in a summary proceeding;
(3) In the absence of sufficient conjugal partnership property, the separate property
of both spouses shall be solidarily liable for the support of the family. The spouse present
shall, upon petition in a summary proceeding, be given judicial authority to administer or
encumber any specific separate property of the other spouse and use the fruits or proceeds
thereof to satisfy the latter's share.191
If a spouse without just cause abandons the other or fails to comply with his or her
obligation to the family, the aggrieved spouse may petition the court for receivership, for
judicial separation of property, or for authority to be the sole administrator of the conjugal
partnership property, subject to such precautionary conditions as the court may impose.
188
Art. 124
189
Art. 125
190
Art. 126
191
Art. 127
42
A spouse is deemed to have abandoned the other when he or she has left the
conjugal dwelling without intention of returning. The spouse who has left the conjugal
dwelling for a period of three months or has failed within the same period to give any
information as to his or her whereabouts shall be prima facie presumed to have no
intention of returning to the conjugal dwelling.192
Procedure:
(1) An inventory shall be prepared, listing separately all the properties of the
conjugal partnership and the exclusive properties of each spouse.
(3) Each spouse shall be reimbursed for the use of his or her exclusive funds in the
acquisition of property or for the value of his or her exclusive property, the ownership of
which has been vested by law in the conjugal partnership.
(4) The debts and obligations of the conjugal partnership shall be paid out of the
conjugal assets. In case of insufficiency of said assets, the spouses shall be solidarily liable
for the unpaid balance with their separate properties, in accordance with the provisions of
paragraph (2) of Article 121.193
(5) Whatever remains of the exclusive properties of the spouses shall thereafter be
delivered to each of them.
(6) Unless the owner had been indemnified from whatever source, the loss or
deterioration of movables used for the benefit of the family, belonging to either spouse,
even due to fortuitous event, shall be paid to said spouse from the conjugal funds, if any.
(7) The net remainder of the conjugal partnership properties shall constitute the
profits, which shall be divided equally between husband and wife, unless a different
proportion or division was agreed upon in the marriage settlements or unless there has
been a voluntary waiver or forfeiture of such share as provided in this Code.
(8) The presumptive legitimes of the common children shall be delivered upon the
partition in accordance with Article 51.194
192
Art. 128
193
supra
194
ibid
43
(9) In the partition of the properties, the conjugal dwelling and the lot on which it
is situated shall, unless otherwise agreed upon by the parties, be adjudicated to the spouse
with whom the majority of the common children choose to remain. Children below the age
of seven years are deemed to have chosen the mother, unless the court has decided
otherwise. In case there is no such majority, the court shall decide, taking into
consideration the best interests of said children.195
Upon the termination of the marriage by death, the conjugal partnership property
shall be liquidated in the same proceeding for the settlement of the estate of the deceased.
If no judicial settlement proceeding is instituted, the surviving spouse shall liquidate
the conjugal partnership property either judicially or extra-judicially within six months from
the death of the deceased spouse. If upon the lapse of the six-month period no liquidation
is made, any disposition or encumbrance involving the conjugal partnership property of the
terminated marriage shall be void.
From the common mass of property support shall be given to the surviving spouse
and to the children during the liquidation of the inventoried property and until what
belongs to them is delivered; but from this shall be deducted that amount received for
support which exceeds the fruits or rents pertaining to them.199
195
Art. 129
196
Art. 130.
197
Art. 131
198
Art. 132
199
Art. 133
44
F. Separation of Property of the Spouses and Administration of
Common Property by One Spouse During the Marriage
Any of the following shall be considered sufficient cause for judicial separation of
property:
(1) That the spouse of the petitioner has been sentenced to a penalty which carries
with it civil interdiction;
(2) That the spouse of the petitioner has been judicially declared an absentee;
(3) That loss of parental authority of the spouse of petitioner has been decreed by
the court;
(4) That the spouse of the petitioner has abandoned the latter or failed to comply
with his or her obligations to the family as provided for in Article 101;201
(5) That the spouse granted the power of administration in the marriage settlements
has abused that power; and
(6) That at the time of the petition, the spouses have been separated in fact for at
least one year and reconciliation is highly improbable.
In the cases provided for in Numbers (1), (2) and (3), the presentation of the final
judgment against the guilty or absent spouse shall be enough basis for the grant of the
decree of judicial separation of property.202
The spouses may jointly file a verified petition with the court for the voluntary
dissolution of the absolute community or the conjugal partnership of gains, and for the
separation of their common properties.
45
Once the separation of property has been decreed, the absolute community or the
conjugal partnership of gains shall be liquidated in conformity with this Code.
During the pendency of the proceedings for separation of property, the absolute
community or the conjugal partnership shall pay for the support of the spouses and their
children.204
The petition for separation of property and the final judgment granting the same
shall be recorded in the proper local civil registries and registries of property.206
The separation of property shall not prejudice the rights previously acquired by
creditors.207
The spouses may, in the same proceedings where separation of property was
decreed, file a motion in court for a decree reviving the property regime that existed
between them before the separation of property in any of the following instances:
(3) When the court, being satisfied that the spouse granted the power of
administration in the marriage settlements will not again abuse that power, authorizes the
resumption of said administration;
(4) When the spouse who has left the conjugal home without a decree of legal
separation resumes common life with the other;
(5) When parental authority is judicially restored to the spouse previously deprived
thereof;
(6) When the spouses who have separated in fact for at least one year, reconcile and
resume common life; or
46
The revival of the former property regime shall be governed by Article 67.208
(3) When one spouse is sentenced to a penalty which carries with it civil
interdiction; or
(4) When one spouse becomes a fugitive from justice or is in hiding as an accused
in a criminal case.
Should the future spouses agree in the marriage settlements that their property
relations during marriage shall be governed by the regime of separation of property, the
provisions of this Chapter shall be suppletory.210
Each spouse shall own, dispose of, possess, administer and enjoy his or her own
separate estate, without need of the consent of the other. To each spouse shall belong all
earnings from his or her profession, business or industry and all fruits, natural, industrial or
civil, due or received during the marriage from his or her separate property.212
Both spouses shall bear the family expenses in proportion to their income, or, in
case of insufficiency or default thereof, to the current market value of their separate
properties.
208
Art. 141.
209
Art. 142.
210
Art. 143
211
Art. 144
212
Art. 145
47
The liabilities of the spouses to creditors for family expenses shall, however, be
solidary.213
When a man and a woman who are capacitated to marry each other, live exclusively
with each other as husband and wife without the benefit of marriage or under a void
marriage, their wages and salaries shall be owned by them in equal shares and the property
acquired by both of them through their work or industry shall be governed by the rules on
co-ownership.
In the absence of proof to the contrary, properties acquired while they lived
together shall be presumed to have been obtained by their joint efforts, work or industry,
and shall be owned by them in equal shares. For purposes of this Article, a party who did
not participate in the acquisition by the other party of any property shall be deemed to
have contributed jointly in the acquisition thereof if the former's efforts consisted in the
care and maintenance of the family and of the household.
Neither party can encumber or dispose by acts inter vivos of his or her share in the
property acquired during cohabitation and owned in common, without the consent of the
other, until after the termination of their cohabitation.
When only one of the parties to a void marriage is in good faith, the share of the
party in bad faith in the co-ownership shall be forfeited in favor of their common children.
In case of default of or waiver by any or all of the common children or their descendants,
each vacant share shall belong to the respective surviving descendants. In the absence of
descendants, such share shall belong to the innocent party. In all cases, the forfeiture shall
take place upon termination of the cohabitation.214
In cases of cohabitation not falling under the preceding Article, only the properties
acquired by both of the parties through their actual joint contribution of money, property,
or industry shall be owned by them in common in proportion to their respective
contributions. In the absence of proof to the contrary, their contributions and
corresponding shares are presumed to be equal. The same rule and presumption shall apply
to joint deposits of money and evidences of credit.
If one of the parties is validly married to another, his or her share in the co-
ownership shall accrue to the absolute community or conjugal partnership existing in such
valid marriage. If the party who acted in bad faith is not validly married to another, his or
her shall be forfeited in the manner provided in the last paragraph of the preceding Article.
213
Art. 146
214
Art. 147
48
The foregoing rules on forfeiture shall likewise apply even if both parties are in
both faith.215
215
Art. 148
49
VI. The Family
The family, being the foundation of the nation, is a basic social institution which
public policy cherishes and protects. Consequently, family relations are governed by law
and no custom, practice or agreement destructive of the family shall be recognized or given
effect.216
No suit between members of the same family shall prosper unless it should appear
from the verified complaint or petition that earnest efforts toward a compromise have
been made, but that the same have failed. If it is shown that no such efforts were in fact
made, the same case must be dismissed.
This rules shall not apply to cases which may not be the subject of compromise
under the Civil Code.218
The family home, constituted jointly by the husband and the wife or by an
unmarried head of a family, is the dwelling house where they and their family reside, and
the land on which it is situated.219
The family home is deemed constituted on a house and lot from the time it is
occupied as a family residence. From the time of its constitution and so long as any of its
beneficiaries actually resides therein, the family home continues to be such and is exempt
216
Art. 149.
217
Art. 150
218
Art. 151
No compromise upon the following questions shall be valid:
(1) The civil status of persons;
(2) The validity of a marriage or a legal separation;
(3) Any ground for legal separation;
(4) Future support;
(5) The jurisdiction of courts;
(6) Future legitime (Art. 2035)
219
Art. 152
50
from execution, forced sale or attachment except as hereinafter provided and to the extent
of the value allowed by law.220
The beneficiaries of a family home are:
(1) The husband and wife, or an unmarried person who is the head of a family; and
(2) Their parents, ascendants, descendants, brothers and sisters, whether the
relationship be legitimate or illegitimate, who are living in the family home and who depend
upon the head of the family for legal support.221
The family home shall be exempt from execution, forced sale or attachment except:
The family home must be part of the properties of the absolute community or the
conjugal partnership, or of the exclusive properties of either spouse with the latter's
consent. It may also be constituted by an unmarried head of a family on his or her own
property.
The actual value of the family home shall not exceed, at the time of its constitution,
the amount of the three hundred thousand pesos in urban areas, and two hundred
thousand pesos in rural areas, or such amounts as may hereafter be fixed by law.
In any event, if the value of the currency changes after the adoption of this Code,
the value most favorable for the constitution of a family home shall be the basis of
evaluation.
220
Art. 153
221
Art. 154.
222
Art. 155
223
Art. 156
51
Urban areas are deemed to include chartered cities and municipalities whose annual
income at least equals that legally required for chartered cities. All others are deemed to be
rural areas.224
The family home may be sold, alienated, donated, assigned or encumbered by the
owner or owners thereof with the written consent of the person constituting the same, the
latter's spouse, and a majority of the beneficiaries of legal age. In case of conflict, the court
shall decide.225
The family home shall continue despite the death of one or both spouses or of the
unmarried head of the family 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 compelling
reasons therefor. This rule shall apply regardless of whoever owns the property or
constituted the family home.226
When a creditor whose claims is not among those mentioned in Article 155227
obtains a judgment in his favor, and he has reasonable grounds to believe that the family
home is actually worth more than the maximum amount fixed in Article 157 228, he may
apply to the court which rendered the judgment for an order directing the sale of the
property under execution. The court shall so order if it finds that the actual value of the
family home exceeds the maximum amount allowed by law as of the time of its
constitution. If the increased actual value exceeds the maximum allowed in Article 157 and
results from subsequent voluntary improvements introduced by the person or persons
constituting the family home, by the owner or owners of the property, or by any of the
beneficiaries, the same rule and procedure shall apply.
At the execution sale, no bid below the value allowed for a family home shall be
considered. The proceeds shall be applied first to the amount mentioned in Article 157,
and then to the liabilities under the judgment and the costs. The excess, if any, shall be
delivered to the judgment debtor.229
For purposes of availing of the benefits of a family home, a person may constitute,
or be the beneficiary of, only one family home.230
The provisions in this Chapter shall also govern existing family residences insofar
as said provisions are applicable.231
224
Art. 157
225
Art. 158
226
Art. 159
227
supra
228
ibid
229
Art. 160
230
Art. 161
231
Art. 162
52
VII. Paternity and Filiation
A. Legitimate Children
Children conceived or born during the marriage of the parents are legitimate.
Children conceived as a result of artificial insemination of the wife with the sperm
of the husband or that of a donor or both are likewise legitimate children of the husband
and his wife, provided, that both of them authorized or ratified such insemination in a
written instrument executed and signed by them before the birth of the child. The
instrument shall be recorded in the civil registry together with the birth certificate of the
child.233
Children conceived and born outside a valid marriage are illegitimate, unless
otherwise provided in this Code.234
(1) That it was physically impossible for the husband to have sexual intercourse
with his wife within the first 120 days of the 300 days which immediately preceded the
birth of the child because of:
(a) the physical incapacity of the husband to have sexual intercourse with
his wife;
(b) the fact that the husband and wife were living separately in such a way
that sexual intercourse was not possible; or
(2) That it is proved that for biological or other scientific reasons, the child could
not have been that of the husband, except in the instance provided in the second paragraph
of Article 164;235 or
232
Art. 163
233
Art. 164
234
Art. 165
235
supra
53
(3) That in case of children conceived through artificial insemination, the written
authorization or ratification of either parent was obtained through mistake, fraud, violence,
intimidation, or undue influence.236
The child shall be considered legitimate although the mother may have declared
against its legitimacy or may have been sentenced as an adulteress.237
If the marriage is terminated and the mother contracted another marriage within
three hundred days after such termination of the former marriage, these rules shall govern
in the absence of proof to the contrary:
(1) A child born before one hundred eighty days after the solemnization of the
subsequent marriage is considered to have been conceived during the former marriage,
provided it be born within three hundred days after the termination of the former
marriage;
(2) A child born after one hundred eighty days following the celebration of the
subsequent marriage is considered to have been conceived during such marriage, even
though it be born within the three hundred days after the termination of the former
marriage.238
The legitimacy or illegitimacy of a child born after three hundred days following the
termination of the marriage shall be proved by whoever alleges such legitimacy or
illegitimacy.239
The action to impugn the legitimacy of the child shall be brought within one year
from the knowledge of the birth or its recording in the civil register, if the husband or, in a
proper case, any of his heirs, should reside in the city or municipality where the birth took
place or was recorded.
If the husband or, in his default, all of his heirs do not reside at the place of birth as
defined in the first paragraph or where it was recorded, the period shall be two years if they
should reside in the Philippines; and three years if abroad. If the birth of the child has been
concealed from or was unknown to the husband or his heirs, the period shall be counted
from the discovery or knowledge of the birth of the child or of the fact of registration of
said birth, whichever is earlier.240
236
Art. 166
237
Art. 167
238
Art. 168
239
Art. 169.
240
Art. 170
54
The heirs of the husband may impugn the filiation of the child within the period
prescribed in the preceding article only in the following cases:
(1) If the husband should die before the expiration of the period fixed for bringing
his action;
(2) If he should die after the filing of the complaint without having desisted
therefrom; or
(3) If the child was born after the death of the husband.241
B. Proof of Filiation
(1) The record of birth appearing in the civil register or a final judgment; or
(2) An admission of legitimate filiation in a public document or a private
handwritten instrument and signed by the parent concerned.
(1) The open and continuous possession of the status of a legitimate child; or
(2) Any other means allowed by the Rules of Court and special laws.242
The action to claim legitimacy may be brought by the child during his or her
lifetime and shall be transmitted to the heirs should the child die during minority or in a
state of insanity. In these cases, the heirs shall have a period of five years within which to
institute the action.243
(1) To bear the surnames of the father and the mother, in conformity with the
provisions of the Civil Code on Surnames;
(2) To receive support from their parents, their ascendants, and in proper cases,
their brothers and sisters, in conformity with the provisions of this Code on Support; and
(3) To be entitled to the legitimate and other successional rights granted to them by
the Civil Code.244
241
Art. 171.
242
Art. 172
243
Art. 173
244
Art. 174
55
C. Illegitimate Children
May establish their illegitimate filiation in the same way and on the same evidence
as legitimate children.
The action must be brought within the same period specified in Article 173, 245
except when the action is based on the second paragraph of Article 172,246 in which case
the action may be brought during the lifetime of the alleged parent.247
Illegitimate children shall use the surname and shall be under the parental authority
of their mother, and shall be entitled to support. However, illegitimate children may use the
surname of their father if their filiation has been expressly recognized by the father through
the record of birth appearing in the civil register, or when an admission in a public
document or private handwritten instrument is made by the father. The father has the right
to institute an action before the regular courts to prove non-filiation during his lifetime.
The legitime of each illegitimate child shall consist of one-half (1/2) of the legitime of a
legitimate child.248
D. Legitimated Children
Only children conceived and born outside of wedlock of parents who, at the time
of the conception of the former, were not disqualified by any impediment to marry each
other may be legitimated.249
Legitimation shall take place by a subsequent valid marriage between parents. The
annulment of a voidable marriage shall not affect the legitimation.250
The effects of legitimation shall retroact to the time of the child's birth.252
The legitimation of children who died before the celebration of the marriage shall
benefit their descendants.253
Legitimation may be impugned only by those who are prejudiced in their rights,
within five years from the time their cause of action accrues.254
245
supra
246
Ibid.
247
Art. 175
248
Art. 176, as amended by R.A. 9255
249
Art. 177
250
Art. 178
251
Art. 179
252
Art. 180
253
Art. 181
56
VIII. Adoption
(a) Any Filipino citizen of legal age, in possession of full civil capacity and legal
rights, of good moral character, has not been convicted of any crime involving moral
turpitude, emotionally and psychologically capable of caring for children, at least sixteen
(16) years older than the adoptee, and who is in a position to support and care for his/her
children in keeping with the means of the family. The requirement of sixteen (16) year
difference between the age of the adopter and adoptee may be waived when the adopter is
the biological parent of the adoptee, or is the spouse of the adoptee's parent;
b) Any alien possessing the same qualifications as above stated for Filipino
nationals: Provided, That his/her country has diplomatic relations with the Republic of the
Philippines, that he/she has been living in the Philippines for at least three (3) continuous
years prior to the filing of the application for adoption and maintains such residence until
the adoption decree is entered, that he/she has been certified by his/her diplomatic or
consular office or any appropriate government agency that he/she has the legal capacity to
adopt in his/her country, and that his/her government allows the adoptee to enter his/her
country as his/her adopted son/daughter: Provided, Further, That the requirements on
residency and certification of the alien's qualification to adopt in his/her country may be
waived for the following:
(i) a former Filipino citizen who seeks to adopt a relative within the fourth
(4th) degree of consanguinity or affinity; or
(ii) one who seeks to adopt the legitimate son/daughter of his/her Filipino
spouse; or
(iii) one who is married to a Filipino citizen and seeks to adopt jointly with
his/her spouse a relative within the fourth (4th) degree of consanguinity or affinity
of the Filipino spouse; or
(c) The guardian with respect to the ward after the termination of the guardianship
and clearance of his/her financial accountabilities.
254
Art. 182
255
R.A. 8552
57
Husband and wife shall jointly adopt, except in the following cases:
(i) if one spouse seeks to adopt the legitimate son/daughter of the other; or
In case husband and wife jointly adopt, or one spouse adopts the illegitimate
son/daughter of the other, joint parental authority shall be exercised by the spouses.256
(a) Any person below eighteen (18) years of age who has been administratively or
judicially declared available for adoption;
(d) A person of legal age if, prior to the adoption, said person has been consistently
considered and treated by the adopter(s) as his/her own child since minority;
(e) A child whose adoption has been previously rescinded; or
(f) A child whose biological or adoptive parent(s) has died: Provided, That no
proceedings shall be initiated within six (6) months from the time of death of said
parent(s).
3. Rights of an adopted child
Except in cases where the biological parent is the spouse of the adopter, all legal
ties between the biological parent(s) and the adoptee shall be severed and the same shall
then be vested on the adopter(s).257
The adoptee shall be considered the legitimate son/daughter of the adopter(s) for
all intents and purposes and as such is entitled to all the rights and obligations provided by
law to legitimate sons/daughters born to them without discrimination of any kind. To this
256
Sec. 7
257
Sec. 16
58
end, the adoptee is entitled to love, guidance, and support in keeping with the means of the
family.258
In legal and intestate succession, the adopter(s) and the adoptee shall have
reciprocal rights of succession without distinction from legitimate filiation. However, if the
adoptee and his/her biological parent(s) had left a will, the law on testamentary succession
shall govern.
(1) For civil purposes, the adopted shall be deemed to be a legitimate child of the
adopters and both shall acquire the reciprocal rights and obligations arising from the
relationship of parent and child, including the right of the adopted to use the surname of
the adopters;
(2) The parental authority of the parents by nature over the adopted shall terminate
and be vested in the adopters, except that if the adopter is the spouse of the parent by
nature of the adopted, parental authority over the adopted shall be exercised jointly by both
spouses; and
(3) The adopted shall remain an intestate heir of his parents and other blood
relatives.259
Legal or intestate succession to the estate of the adopted shall be governed by the
following rules:
(1) Legitimate and illegitimate children and descendants and the surviving spouse
of the adopted shall inherit from the adopted, in accordance with the ordinary rules of legal
or intestate succession;
(2) When the parents, legitimate or illegitimate, or the legitimate ascendants of the
adopted concur with the adopter, they shall divide the entire estate, one-half to be inherited
by the parents or ascendants and the other half, by the adopters;
(3) When the surviving spouse or the illegitimate children of the adopted concur
with the adopters, they shall divide the entire estate in equal shares, one-half to be inherited
by the spouse or the illegitimate children of the adopted and the other half, by the
adopters.
(4) When the adopters concur with the illegitimate children and the surviving
spouse of the adopted, they shall divide the entire estate in equal shares, one-third to be
258
Sec. 17
259
Art. 189, FC
59
inherited by the illegitimate children, one-third by the surviving spouse, and one-third by
the adopters;
(5) When only the adopters survive, they shall inherit the entire estate; and
(6) When only collateral blood relatives of the adopted survive, then the ordinary
rules of legal or intestate succession shall apply.260
4. Rescission of adoption
Upon petition of the adoptee, with the assistance of the Department if a minor or
if over eighteen (18) years of age but is incapacitated, as guardian/counsel, the adoption
may be rescinded on any of the following grounds committed by the adopter(s):
(a) repeated physical and verbal maltreatment by the adopter(s) despite
having undergone counseling;
(b) attempt on the life of the adoptee;
(c) sexual assault or violence; or (d) abandonment and failure to comply
with parental obligations.
Adoption, being in the best interest of the child, shall not be subject to rescission
by the adopter(s). However, the adopter(s) may disinherit the adoptee for causes provided
in Article 919261 of the Civil Code.262
If the petition is granted, the parental authority of the adoptee's biological parent(s),
if known, or the legal custody of the Department shall be restored if the adoptee is still a
minor or incapacitated. The reciprocal rights and obligations of the adopter(s) and the
adoptee to each other shall be extinguished.
The court shall order the Civil Registrar to cancel the amended certificate of birth
of the adoptee and restore his/her original birth certificate.
Succession rights shall revert to its status prior to adoption, but only as of the date
of judgment of judicial rescission. Vested rights acquired prior to judicial rescission shall be
respected.
All the foregoing effects of rescission of adoption shall be without prejudice to the
penalties imposable under the Penal Code if the criminal acts are properly proven.263
260
Art. 190, id.
261
See Reference
262
Sec. 19, R.A. 8552
263
Sec. 20, id.
60
C. Inter- Country Adoption Act of 1995264
(a) is at least twenty-seven (27) years of age and at least sixteen (16) years older than
the child to be adopted, at the time of application unless the adopter is the parent by nature
of the child to be adopted or the spouse of such parent:
(b) if married, his/her spouse must jointly file for the adoption;
(c) has the capacity to act and assume all rights and responsibilities of parental
authority under his national laws, and has undergone the appropriate counseling from an
accredited counselor in his/her country;
(f) is in a position to provide the proper care and support and to give the necessary
moral values and example to all his children, including the child to be adopted;
(g) agrees to uphold the basic rights of the child as embodied under Philippine
laws, the U.N. Convention on the Rights of the Child, and to abide by the rules and
regulations issued to implement the provisions of this Act;
(h) comes from a country with whom the Philippines has diplomatic relations and
whose government maintains a similarly authorized and accredited agency and that
adoption is allowed under his/her national laws; and
(i) possesses all the qualifications and none of the disqualifications provided herein
and in other applicable Philippine laws.265
264
R.A. 8043
265
Sec. 9
61
2. Who can be adopted
Only a legally free child may be the subject of inter-country adoption. In order that
such child may be considered for placement, the following documents must be submitted
to the Board:
IX. Support
A. What it Comprises
266
Sec. 8
267
Art. 194
268
Art. 195
62
Brothers and sisters not legitimately related, whether of the full or half-blood, are
likewise bound to support each other to the full extent set forth in Article 194269, except
only when the need for support of the brother or sister, being of age, is due to a cause
imputable to the claimant's fault or negligence.270
269
supra
270
Art. 196
271
Art. 197
272
Art. 199
273
Art. 200
274
Art. 206
63
When the person obliged to support another unjustly refuses or fails to give
support when urgently needed by the latter, any third person may furnish support to the
needy individual, with right of reimbursement from the person obliged to give support.
This shall particularly apply when the father or mother of a child under the age of majority
unjustly refuses to support or fails to give support to the child when urgently needed.275
In case of contractual support or that given by will, the excess in amount beyond
that required for legal support shall be subject to levy on attachment or execution.
The spouses and their children shall be supported from the properties of the
absolute community or the conjugal partnership. After the final judgment granting the
petition, the obligation of mutual support between the spouses ceases. However, in case of
legal separation, the court may order that the guilty spouse shall give support to the
innocent one, specifying the terms of such order.277
D. Amount
Shall be in proportion to the resources or means of the giver and to the necessities
of the recipient.278
E. When Demandable
From the time the person who has a right to receive the same needs it for
maintenance, but it shall not be paid except from the date of judicial or extrajudicial
demand.
Support pendente lite may be claimed in accordance with the Rules of Court.
275
Art. 207
276
Art. 208
277
Art. 198
278
Art. 201.
279
Art. 202
64
Payment shall be made within the first five (5) days of each corresponding month
or when the recipient dies, his heirs shall not be obliged to return what he has received in
advance.280
F. Options
The person obliged to give support shall have the option to fulfill the obligation
either by paying the allowance fixed, or by receiving and maintaining in the family dwelling
the person who has a right to receive support. The latter alternative cannot be availed of in
case there is a moral or legal obstacle thereto.281
G. Attachment
The right to receive support as well as any money or property obtained as such
support shall not be levied upon on attachment or execution.282
X. Parental Authority
A. General Provisions
Pursuant to the natural right and duty of parents over the person and property of
their unemancipated children, parental authority and responsibility shall include the caring
for and rearing them for civic consciousness and efficiency and the development of their
moral, mental and physical character and well-being.283
The father and the mother shall jointly exercise parental authority over the persons
of their common children. In case of disagreement, the father's decision shall prevail,
unless there is a judicial order to the contrary.
Children shall always observe respect and reverence towards their parents and are
obliged to obey them as long as the children are under parental authority.285
In case of absence or death of either parent, the parent present shall continue
exercising parental authority. The remarriage of the surviving parent shall not affect the
280
Art. 203
281
Art. 204
282
Art. 205
283
Art. 209
284
Art. 210
285
Art. 211
65
parental authority over the children, unless the court appoints another person to be the
guardian of the person or property of the children.286
The following persons shall exercise substitute parental authority over the child in
the order indicated:
286
Art. 212
287
Art. 213.
288
Art. 214
289
Art. 215
290
supra
291
Art. 216
292
Art. 217
66
The school, its administrators and teachers, or the individual, entity or institution
engaged in child are shall have special parental authority and responsibility over the minor
child while under their supervision, instruction or custody.
Authority and responsibility shall apply to all authorized activities whether inside or
outside the premises of the school, entity or institution.293
Those given the authority and responsibility under the preceding Article shall be
principally and solidarily liable for damages caused by the acts or omissions of the
unemancipated minor. The parents, judicial guardians or the persons exercising substitute
parental authority over said minor shall be subsidiarily liable.
The respective liabilities of those referred to in the preceding paragraph shall not
apply if it is proved that they exercised the proper diligence required under the particular
circumstances.
All other cases not covered by this and the preceding articles shall be governed by
the provisions of the Civil Code on quasi-delicts.294
The parents and those exercising parental authority shall have with the respect to
their unemancipated children on wards the following rights and duties:
(1) To keep them in their company, to support, educate and instruct them by right
precept and good example, and to provide for their upbringing in keeping with their
means;
(2) To give them love and affection, advice and counsel, companionship and
understanding;
(3) To provide them with moral and spiritual guidance, inculcate in them honesty,
integrity, self-discipline, self-reliance, industry and thrift, stimulate their interest in civic
affairs, and inspire in them compliance with the duties of citizenship;
(4) To furnish them with good and wholesome educational materials, supervise
their activities, recreation and association with others, protect them from bad company,
and prevent them from acquiring habits detrimental to their health, studies and morals;
293
Art. 218
294
Art. 219
67
(6) To demand from them respect and obedience;
(7) To impose discipline on them as may be required under the circumstances; and
(8) To perform such other duties as are imposed by law upon parents and
guardians.295
Parents and other persons exercising parental authority shall be civilly liable for the
injuries and damages caused by the acts or omissions of their unemancipated children
living in their company and under their parental authority subject to the appropriate
defenses provided by law.296
The courts may appoint a guardian of the child's property or a guardian ad litem
when the best interests of the child so requires.297
The parents or, in their absence or incapacity, the individual, entity or institution
exercising parental authority, may petition the proper court of the place where the child
resides, for an order providing for disciplinary measures over the child. The child shall be
entitled to the assistance of counsel, either of his choice or appointed by the court, and a
summary hearing shall be conducted wherein the petitioner and the child shall be heard.
However, if in the same proceeding the court finds the petitioner at fault,
irrespective of the merits of the petition, or when the circumstances so warrant, the court
may also order the deprivation or suspension of parental authority or adopt such other
measures as it may deem just and proper.298
The measures referred to in the preceding article may include the commitment of
the child for not more than thirty days in entities or institutions engaged in child care or in
children's homes duly accredited by the proper government agency.
The parent exercising parental authority shall not interfere with the care of the
child whenever committed but shall provide for his support. Upon proper petition or at its
own instance, the court may terminate the commitment of the child whenever just and
proper.299
295
Art. 220
296
Art. 221
297
Art. 222
298
Art. 223
299
Art. 224
68
D. Effects of Parental Authority upon the Property of the Children
The father and the mother shall jointly exercise legal guardianship over the
property of the unemancipated common child without the necessity of a court
appointment. In case of disagreement, the father's decision shall prevail, unless there is a
judicial order to the contrary.
Where the market value of the property or the annual income of the child exceeds
P50,000, the parent concerned shall be required to furnish a bond in such amount as the
court may determine, but not less than ten per centum (10%) of the value of the property
or annual income, to guarantee the performance of the obligations prescribed for general
guardians.
A verified petition for approval of the bond shall be filed in the proper court of the
place where the child resides, or, if the child resides in a foreign country, in the proper
court of the place where the property or any part thereof is situated.
The ordinary rules on guardianship shall be merely suppletory except when the
child is under substitute parental authority, or the guardian is a stranger, or a parent has
remarried, in which case the ordinary rules on guardianship shall apply.300
The property of the unemancipated child earned or acquired with his work or
industry or by onerous or gratuitous title shall belong to the child in ownership and shall be
devoted exclusively to the latter's support and education, unless the title or transfer
provides otherwise.
The right of the parents over the fruits and income of the child's property shall be
limited primarily to the child's support and secondarily to the collective daily needs of the
family.301
300
Art. 225
301
Art. 226
302
Art. 227
69
E. Suspension or Termination of Parental Authority
The court in an action filed for the purpose in a related case may also suspend
parental authority if the parent or the person exercising the same:
303
Art. 228
304
unless subsequently revived by a final judgment
305
Art. 229
306
Art. 230
70
If the degree of seriousness so warrants, or the welfare of the child so demands, the
court shall deprive the guilty party of parental authority or adopt such other measures as
may be proper under the circumstances.
The suspension or deprivation may be revoked and the parental authority revived
in a case filed for the purpose or in the same proceeding if the court finds that the cause
therefor has ceased and will not be repeated.307
If the person exercising parental authority has subjected the child or allowed him to
be subjected to sexual abuse, such person shall be permanently deprived by the court of
such authority.308
The person exercising substitute parental authority shall have the same authority
over the person of the child as the parents.
In no case shall the school administrator, teacher of individual engaged in child care
exercising special parental authority inflict corporal punishment upon the child.309
XI. Emancipation
Emancipation for any cause shall terminate parental authority over the person and
property of the child who shall then be qualified and responsible for all acts of civil life.312
307
Art. 231
308
Art. 232
309
Art. 233
310
Unless otherwise provided, majority commences at the age of twenty-one years.
311
Art. 234, as amended by R.A. 6809
312
Art. 236
71
XII. Summary Judicial Proceedings in Family Law Cases
The procedural rules provided for shall apply as regards separation in fact between
husband and wife, abandonment by one of the other, and incidents involving parental
authority.313
When a husband and wife are separated in fact, or one has abandoned the other
and one of them seeks judicial authorization for a transaction where the consent of the
other spouse is required by law but such consent is withheld or cannot be obtained, a
verified petition may be filed in court alleging the foregoing facts.
The petition shall attach the proposed deed, if any, embodying the transaction, and,
if none, shall describe in detail the said transaction and state the reason why the required
consent thereto cannot be secured. In any case, the final deed duly executed by the parties
shall be submitted to and approved by the court.314
Claims for damages by either spouse, except costs of the proceedings, may be
litigated only in a separate action.315
Jurisdiction over the petition shall, upon proof of notice to the other spouse, be
exercised by the proper court authorized to hear family cases, if one exists, or in the
regional trial court or its equivalent sitting in the place where either of the spouses
resides.316
Upon the filing of the petition, the court shall notify the other spouse, whose
consent to the transaction is required, of said petition, ordering said spouse to show cause
why the petition should not be granted, on or before the date set in said notice for the
initial conference. The notice shall be accompanied by a copy of the petition and shall be
served at the last known address of the spouse concerned.317
In case of non-appearance of the spouse whose consent is sought, the court shall
inquire into the reasons for his failure to appear, and shall require such appearance, if
possible.319
313
Art. 238
314
Art. 239
315
Art. 240
316
Art. 241
317
Art. 242
318
Art. 243.
319
Art. 244
72
If, despite all efforts, the attendance of the non-consenting spouse is not secured,
the court may proceed ex parte and render judgment as the facts and circumstances may
warrant. In any case, the judge shall endeavor to protect the interests of the non-appearing
spouse.320
If the petition is not resolved at the initial conference, said petition shall be decided
in a summary hearing on the basis of affidavits, documentary evidence or oral testimonies
at the sound discretion of the court. If testimony is needed, the court shall specify the
witnesses to be heard and the subject-matter of their testimonies, directing the parties to
present said witnesses.321
Petitions filed under Articles 223, 225 and 235324 of this Code involving parental
authority shall be verified.325
Such petitions shall be verified and filed in the proper court of the place where the
child resides.326
Upon the filing of the petition, the court shall notify the parents or, in their absence
or incapacity, the individuals, entities or institutions exercising parental authority over the
child.327
The rules in Chapter 2328 hereof shall also govern summary proceedings under this
Chapter insofar as they are applicable.329
320
Art. 245
321
Art. 246
322
Art. 247
323
Art. 248
324
supra
325
Art. 249
326
Art. 250
327
Art. 251
328
Separation in Fact
329
Art. 252
73
XIII. Retroactivity of the Family Code
XIV. Funerals
The duty and the right to make arrangements for the funeral of a relative shall be in
accordance with the order established for support, under article 294.331 In case of
descendants of the same degree, or of brothers and sisters, the oldest shall be preferred. In
case of ascendants, the paternal shall have a better right.332
Every funeral shall be in keeping with the social position of the deceased.333
The funeral shall be in accordance with the expressed wishes of the deceased. In
the absence of such expression, his religious beliefs or affiliation shall determine the funeral
rites. In case of doubt, the form of the funeral shall be decided upon by the person obliged
to make arrangements for the same, after consulting the other members of the family.334
Any person who shows disrespect to the dead, or wrongfully interferes with a
funeral shall be liable to the family of the deceased for damages, material and moral.336
330
Art. 256
331
See Reference
332
Art. 305
333
Art. 306
334
Art. 307
335
Art. 308; Art. 305, supra
336
Art. 309
337
Art. 310
74
XV. Use of surnames338
Legitimate and legitimated children shall principally use the surname of the
339
father.
A natural child acknowledged by both parents shall principally use the surname of
the father. If recognized by only one of the parents, a natural child shall employ the
surname of the recognizing parent.341
Natural children by legal fiction shall principally employ the surname of the
father.342
Illegitimate children referred to in article 287 shall bear the surname of the
mother.343
Children conceived before the decree annulling a voidable marriage shall principally
use the surname of the father.344
(1) Her maiden first name and surname and add her husband's surname, or
(2) Her maiden first name and her husband's surname or
(3) Her husband's full name, but prefixing a word indicating that she is his wife,
such as "Mrs."345
In case of annulment of marriage, and the wife is the guilty party, she shall resume
her maiden name and surname. If she is the innocent spouse, she may resume her maiden
name and surname. However, she may choose to continue employing her former
husband's surname, unless:
338
other articles repealed by Family Code
339
Art. 364
340
Art. 365
341
Art. 366
342
Art. 367
343
Art. 368
344
Art. 369
345
Art. 370
75
When legal separation has been granted, the wife shall continue using her name and
surname employed before the legal separation.347
A widow may use the deceased husband's surname as though he were still living, in
accordance with article 370.348
In case of identity of names and surnames, the younger person shall be obliged to
use such additional name or surname as will avoid confusion.349
Usurpation of a name and surname may be the subject of an action for damages
and other relief.352
Except as provided in the preceding article, no person shall use different names
and surnames.355
346
Art. 371
347
Art. 372
348
Art. 373
349
Art. 374
350
Art. 375
351
Art. 376, amended by R.A. 9048, infra
352
Art. 377
353
Art. 378
354
Art. 379
355
Art. 380
76
XVI. Absence
If there is a doubt, as between two or more persons who are called to succeed each
other, as to which of them died first, whoever alleges the death of one prior to the other,
shall prove the same; in the absence of proof, it is presumed that they died at the same time
and there shall be no transmission of rights from one to the other.356
For the purpose of contracting the subsequent marriage, the spouse present must
institute a summary proceeding as provided in this Code for the declaration of presumptive
death of the absentee, without prejudice to the effect of reappearance of the absent
spouse.357
When a person disappears from his domicile, his whereabouts being unknown, and
without leaving an agent to administer his property, the judge, at the instance of an
interested party, a relative, or a friend, may appoint a person to represent him in all that
may be necessary.
This same rule shall be observed when under similar circumstances the power
conferred by the absentee has expired.358
The appointment referred to in the preceding article having been made, the judge
shall take the necessary measures to safeguard the rights and interests of the absentee and
shall specify the powers, obligations and remuneration of his representative, regulating
them, according to the circumstances, by the rules concerning guardians.359
If the absentee left no spouse, or if the spouse present is a minor, any competent
person may be appointed by the court.360
356
Art. 43, CC
357
Art. 41, FC
358
Art. 381
359
Art. 382
360
Art. 383
77
B. Declaration of Absence
Two (2) years having elapsed without any news about the absentee or since the
receipt of the last news, and five (5) years in case the absentee has left a person in charge of
the administration of his property, his absence may be declared.361
The judicial declaration of absence shall not take effect until six (6) months after its
publication in a newspaper of general circulation.363
In these cases the administrator shall cease in the performance of his office, and
the property shall be at the disposal of those who may have a right thereto.366
361
Art. 384
362
Art. 385
363
Art. 386
364
Art. 387
365
Art. 388
366
Art. 389
78
D. Presumption of Death
After an absence of seven (7) years, it being unknown whether or not the absentee
still lives, he shall be presumed dead for all purposes, except for those of succession.
The absentee shall not be presumed dead for the purpose of opening his
succession till after an absence of ten years. If he disappeared after the age of seventy-five
years, an absence of five years shall be sufficient in order that his succession may be
opened.367
The following shall be presumed dead for all purposes, including the division of the
estate among the heirs:
(1) A person on board a vessel lost during a sea voyage, or an aeroplane which is
missing, who has not been heard of for four years since the loss of the vessel or aeroplane;
(2) A person in the armed forces who has taken part in war, and has been missing
for four years;
(3) A person who has been in danger of death under other circumstances and his
existence has not been known for four years.368
367
Art. 390
368
Art. 391
369
Art. 392
79
XVII. Civil Registrar
A. Arts. 407-413
Acts, events and judicial decrees concerning the civil status of persons shall be
recorded in the civil register.370
(1) Births;
(2) marriages;
(3) deaths;
(4) legal separations;
(5) annulments of marriage;
(6) judgments declaring marriages void from the beginning;
(7) legitimations;
(8) adoptions;
(9) acknowledgments of natural children;
(10) naturalization;
(11) loss, or
(12) recovery of citizenship;
(13) civil interdiction;
(14) judicial determination of filiation;
(15) voluntary emancipation of a minor; and
(16) changes of name.371
370
Art. 407
371
Art. 408
372
Art. 409
80
The books making up the civil register and all documents relating thereto shall be
considered public documents and shall be prima facie evidence of the facts therein
contained.373
Every civil registrar shall be civilly responsible for any unauthorized alteration made
in any civil register, to any person suffering damage thereby. However, the civil registrar
may exempt himself from such liability if he proves that he has taken every reasonable
precaution to prevent the unlawful alteration.374
All other matters pertaining to the registration of civil status shall be governed by
special laws.376
373
Art. 410
374
Art. 411
375
Art. 412
376
Art. 413
377
R.A. 9048, entitled An Act Authorizing the City or Municipal Civil Registrar or the Consul General to
Correct a Clerical or Typographical Error in an Entry and/or Change of First Name or Nickname in the
Civil Register Without Need of a Judicial Order., See Reference
378
ibid
81
PROPERTY379
I. Characteristics
II. Classification381
a) By nature those which cannot be General Rule: All things which can be
carried from place to place.384 transported from place to place without
impairment of the real property to which
1. Lands, buildings, roads and they are fixed.
constructions (adhered to the soil).385
Exclusions: those movables susceptible of
2. Mines, quarries and slag dumps, appropriation which are not included in the
while the matter thereof forms part of the enumeration of immovables.
bed, and waters either running or stagnant.
a. Special: real property which by any
b) By incorporation essentially movables special provisions of law is considered as
but are attached to an immovable in a fixed personalty.
manner to be an integral part thereof.386
b. In parts: forces of nature which are
1. Trees, plants and growing fruits brought under control by science.
while they are attached to the land or form
379
All things which are, or may be the object of appropriation
380
that is, it can exist by itself, and not merely as a part of the whole; hence, the human hair becomes
property only when it is detached from the hair
381
Tests:
a. Immovable - cannot be transferred from place to place.
b. Movable excluded from the enumeration of immovable and can be moved from place to place
without damage thereto.
c. Mixed/semi-movable - those which move by themselves (both immovable and movable in
nature).
382
Art. 415
383
Art. 416 to 417
384
Pars. 1 & 8
385
The materials constituting a building which is the subject of demolition are movable.
A structure which is merely superimposed, not adhered, to the soil may be considered movable.
386
Pars. 2, 3 & 7
82
an integral part of an immovable. c. Obligations and actions which have
for their object movables391 or demandable
2. Everything attached to an immovable sums.392
in a fixed manner in such a way that it
cannot be separated therefrom without d. Shares of stocks or interests in
breaking the material or deterioration of the juridical entities.
object.387
387
Rex vinta
388
Indirect utility
389
Direct utility
83
d) By analogy - classified by express
provision of law because it is regarded as
united to the immovable property.390
A. Hidden Treasure393
Belongs to the owner of the land, building, or other property on which it is found.
When the discovery is made on the property of another, or of the State or any of its
subdivisions, and by chance, one-half (1/2) thereof shall be allowed to the finder. If the
finder is a trespasser, he shall not be entitled to any share of the treasure.
If the things found be of interest to science or the arts, the State may acquire them
at their just price, which shall be divided in conformity with the rule stated.394
By treasure is understood, for legal purposes, any hidden and unknown deposit of
money, jewelry, or other precious objects, the lawful ownership of which does not
appear.395
391
corporeal or intangible
392
These are really personal rights because they have a definite passive subject (e.g. intellectual
property).
390
Par. 10
393
Treasure consists of money, jewels, or other precious objects which are hidden and unknown, such
that their finding is a real discovery.
394
Art. 438
395
Art. 439
84
B. Right of Accession
1. Fruits
Industrial fruits are those produced by lands of any kind through cultivation or
labor.
Civil fruits are the rents of buildings, the price of leases of lands and other property
and the amount of perpetual or life annuities or other similar income.398
He who receives the fruits has the obligation to pay the expenses made by a third
person in their production, gathering, and preservation.399
Only such as are manifest or born are considered as natural or industrial fruits.
With respect to animals, it is sufficient that they are in the womb of the mother,
although unborn.400
396
Art. 440
397
Art. 441
398
Art. 442
399
Art. 443
400
Art. 444
85
2. With respect to Immovable Property
The owner of the land on which anything has been built, sown or planted in good
faith, shall have the right to appropriate as his own the works, sowing or planting, after
payment of the indemnity provided for in articles 546 and 548401, or to oblige the one who
built or planted to pay the price of the land, and the one who sowed, the proper rent.
However, the builder or planter cannot be obliged to buy the land if its value is
considerably more than that of the building or trees. In such case, he shall pay reasonable
rent, if the owner of the land does not choose to appropriate the building or trees after
proper indemnity. The parties shall agree upon the terms of the lease and in case of
disagreement, the court shall fix the terms thereof.402
In the cases of the two preceding articles,403 the landowner is entitled to damages
from the builder, planter or sower.404
The builder, planter or sower in bad faith is entitled to reimbursement for the
necessary expenses of preservation of the land.405
If there was bad faith, not only on the part of the person who built, planted or
sowed on the land of another, but also on the part of the owner of such land, the rights of
one and the other shall be the same as though both had acted in good faith.
It is understood that there is bad faith on the part of the landowner whenever the
act was done with his knowledge and without opposition on his part.406
When the landowner acted in bad faith and the builder, planter or sower proceeded
in good faith, the provisions of Article 447407 shall apply.408
401
See reference
402
Art. 448
403
Refers to Arts. 449 and 450, infra
404
Art. 451
405
Art. 452
406
Art. 453
407
supra
408
Art. 454
86
If the materials, plants or seeds belong to a third person who has not acted in bad
faith, the owner of the land shall answer subsidiarily for their value and only in the event
that the one who made use of them has no property with which to pay.
This provision shall not apply if the owner makes use of the right granted by article
450. If the owner of the materials, plants or seeds has been paid by the builder, planter or
sower, the latter may demand from the landowner the value of the materials and labor.409
Good faith does not necessarily exclude negligence, which gives right to damages
under Article 2176.410
He who builds, plants or sows in bad faith on the land of another, loses what is
built, planted or sown without right to indemnity.411
The owner of the land on which anything has been built, planted or sown in bad
faith may demand the demolition of the work, or that the planting or sowing be removed,
in order to replace things in their former condition at the expense of the person who built,
planted or sowed; or he may compel the builder or planter to pay the price of the land, and
the sower the proper rent.412
b. Usufructuary
The usufructuary may make on the property held in usufruct such useful
improvements or expenses for mere pleasure as he may deem proper, provided he does not
alter its form or substance; but he shall have no right to be indemnified therefor. He may,
however, remove such improvements, should it be possible to do so without damage to the
property.413
a. Alluvion
To the owners of lands adjoining the banks of rivers belong the accretion which
they gradually receive from the effects of the current of the waters.414
409
Art. 455
410
Art. 456; see Reference for Art. 2176
411
Art. 449
412
Art. 450
413
Art. 579
414
Art. 457
87
b. Change of course of river
River beds which are abandoned through the natural change in the course of the
waters ipso facto belong to the owners whose lands are occupied by the new course in
proportion to the area lost. However, the owners of the lands adjoining the old bed shall
have the right to acquire the same by paying the value thereof, which value shall not exceed
the value of the area occupied by the new bed.415
Whenever a river, changing its course by natural causes, opens a new bed through a
private estate, this bed shall become of public dominion.416
When a river or stream suddenly changes its course to traverse private lands, the
owners of the affected lands may not compel the government to restore the river to its
former bed; nor can they restrain the government from taking steps to revert the river or
stream to its former course. The owners of the land thus affected are not entitled to
compensation for any damage sustained thereby. However, the former owners of the new
bed shall be the owners of the abandoned bed in proportion to the area lost by each.
The owners of the affected lands may undertake to return the river or stream to its
old bed at their own expense; Provided, a permit therefor is secured from the Secretary of
Public Works, Transportation and Communication and work pertaining thereto are
commenced within two (2) years from the change in the course of the river or stream.417
c. Avulsion
Whenever the current of a river, creek or torrent segregates from an estate on its
bank a known portion of land and transfers it to another estate, the owner of the land to
which the segregated portion belonged retains the ownership of it, provided that he
removes the same within two years418
Trees uprooted and carried away by the current of the waters belong to the owner
of the land upon which they may be cast, if the owners do not claim them within six
months. If such owners claim them, they shall pay the expenses incurred in gathering them
or putting them in a safe place.419
River beds which are abandoned through the natural change in the course of the
waters ipso facto belong to the owners whose lands are occupied by the new course in
proportion to the area lost. However, the owners of the lands adjoining the old bed shall
415
Art. 461
416
Art. 462
417
Art. 58, P.D. 1067 or the Water Code
418
Art. 459
419
Art. 460
88
have the right to acquire the same by paying the value thereof, which value shall not exceed
the value of the area occupied by the new bed.420
Whenever a river, changing its course by natural causes, opens a new bed through a
private estate, this bed shall become of public dominion.421
Whenever the current of a river divides itself into branches, leaving a piece of land
or part thereof isolated, the owner of the land retains his ownership. He also retains it if a
portion of land is separated from the estate by the current.422
4. Islands
Islands which may be formed on the seas within the jurisdiction of the Philippines,
on lakes, and on navigable or floatable rivers belong to the State.423
C. By Object
1. Real or immovable425
(1) Land, buildings, roads and constructions of all kinds adhered to the soil;
(2) Trees, plants, and growing fruits, while they are attached to the land or form an
integral part of an immovable;
(4) Statues, reliefs, paintings or other objects for use or ornamentation, placed in
buildings or on lands by the owner of the immovable in such a manner that it reveals the
intention to attach them permanently to the tenements;
420
Art. 461
421
Art. 462
422
Art. 463
423
Art. 464
424
Art. 465
425
See also Classification, supra
89
(5) Machinery, receptacles, instruments or implements intended by the owner of
the tenement for an industry or works which may be carried on in a building or on a piece
of land, and which tend directly to meet the needs of the said industry or works;
(8) Mines, quarries, and slag dumps, while the matter thereof forms part of the bed,
and waters either running or stagnant;
(9) Docks and structures which, though floating, are intended by their nature and
object to remain at a fixed place on a river, lake, or coast;
(10) Contracts for public works, and servitudes and other real rights over
immovable property.
2. Personal or Movable426
(1) Those movables susceptible of appropriation which are not included in the
preceding article;
(2) Real property which by any special provision of law is considered as personalty;
(3) Forces of nature which are brought under control by science; and
(4) In general, all things which can be transported from place to place without
impairment of the real property to which they are fixed.
(1) Obligations and actions which have for their object movables or demandable
sums; and
(2) Shares of stock of agricultural, commercial and industrial entities, although they
may have real estate.
426
ibid
90
D. By Owner
1. Of public dominion
It is not owned by the state but pertains to the state, which, as territorial sovereign
exercises certain juridical prerogatives over such property.427 The ownership of such
properties is in the social group, whether national, provincial or municipal.
2. Of private ownership
a. Patrimonial property
Property of the State owned by it in its This refers to all property belonging to
private or proprietary capacity. private persons either individually or
collectively and those belonging to the State
The state has the same rights over this kind and any of its political subdivisions which
of property as a private individual in are patrimonial in nature.
relation to his own private property
E. By Nature
427
a. For public use (e.g. roads, canals, rivers)
b. For public service (e.g. public buildings)
c. For the development of the national wealth.
428
Used by the political subdivision as a juridical person in its private capacity (e.g. property acquired
through escheat proceedings, tax sales). It is the property which the unit has the same rights, and of
which it may dispose, to the same extent as private individuals according to laws and regulations on the
procedure of exercising such rights. Hence, it is subject to the principles on private properties (e.g.
subject to prescription
429
Consumable goods cannot be the subject matter of a contract of commodatum unless the purpose of
the contract is not the consumption of the object as when it is merely for exhibition.
91
Non-consumable - not consumed by use.
III. Ownership
A. Rights in general432
1. Bundle of rights
430
e.g. 10 bottles of wine
431
e.g. 10 bottles of wine which I have in my room
432
The right to enjoy, dispose, and recover a thing without further limitations than those established by
law or the will of the owner.
433
the right to use
434
the right to enjoy the fruits
435
the right to destroy (but cannot harm others)
436
The right of action available to the owner to recover the property against the holder or possessor
437
The right to dispose, or the right to alienate, encumber, transform
92
(a) Distinctions between accion
reivindicatoria, accion publiciana,
accion interdictal
2. Unlawful Detainer -
Action for recovery of
438
This action should be filed in case of refusal of a party to deliver possession of property due to an
adverse claim of ownership.
Requisites:
1. Identity of the Property
2. Plaintiffs title to the property
439
plenary action
Whenever the owner is dispossessed by any other means (e.g. possession is due to tolerance of the
owner) other than FISTS, he may maintain this action to recover possession without waiting for the
expiration of 1 year before commencing this suit. It may also be brought after the expiration of 1 year if
no action had been instituted for forcible entry or unlawful detainer
440
Period to file action: Within 1 year after such unlawful deprivation or withholding of possession,
commencing from the time of last demand (oral or written; direct or indirect) to vacate. No demand is
necessary for a lessee to vacate when it is specifically provided for in the agreement.
Prayer: for the restitution of possession, with damages and costs. However, the only damages that
can be recovered in an Ejectment suit are the fair rental value or the reasonable compensation for the
use and occupation of the real property. Other damages must be claimed in an ordinary action.
The defendant, however, may set up a counterclaim for moral damages and recover it if it is within
the jurisdiction of the court.
Jurisdiction: MTC (summary proceedings). Whatever the amount of plaintiffs damages will not
affect the courts jurisdiction.
Issue: Physical possession. The decision in such action is res judicata in the question of possession.
Sublessees are bound by the judgment rendered against the lessee in an ejectment case even if they
were not made parties thereto.
93
possession of any land or
building by landlord,
vendor, vendee, or other
person against whom the
possession of the same was
unlawfully withheld after the
expiration or termination of
the right to hold possession,
by virtue of any contract.
441
See Accion Interdictal, supra
Ejectment suit:
a. Can be brought by anyone of the coowners.
A co-owner may bring such an action without the necessity of joining all the other co-owners as co-
plaintiffs because the suit is deemed to be instituted for the benefit of all.
However, if the action is for the benefit of the plaintiff alone, such that he claims the possession for
himself and not for the co-ownership, the action will NOT prosper.
b. Action may be brought not only against strangers but even against a coowner.
The effect of the action will be to obtain recognition of the co-ownership. The defendant cannot be
excluded because he has a right to possess as a co-owner, and the plaintiff cannot recover any material
or determinate part of the property.
c. An adverse decision in the action is not necessarily res judicata with respect to the other co
owners not being parties to the action, but they are bound where it appears that the action was
instituted in their behalf with their express or implied consent.
94
Plaintiff must prove that he was in prior Plaintiff need not have been in prior
physical possession of the premises until physical possession
he was deprived thereof by the defendant
From the date of actual entry on the land From the date of last demand or last letter of
demand
Replevin - remedy when the complaint prays for the recovery of the possession of
personal property.
a. Torrens title.
b. Title from the Spanish Government.
c. Patent duly registered in the Registry of Property by the grantee.
d. Deed of sale.
e. Long possession.
(b) Identity
442
proof of ownership
Tax declarations are not conclusive proof of ownership. However, when coupled with possession for a
period sufficient for prescription, they become strong evidence of ownership. Also, the failure of a
person to declare land for taxation may be admitted to show that he is not the owner thereof.
95
2. Distinction between real and personal rights
Jus in re, a right enforceable against the Jus ad rem, a right enforceable only against a
whole world definite person or group of persons
Right pertaining to a person over a specific Right pertaining to the person to demand
thing, without a passive subject individually from another, as a definite passive subject,
determined against whom such right may be the fulfillment of a prestation to give, to do
personally enforced or not to do.
Creates juridical relations through mode & Creates juridical relations through title
title
1. Original
2. Derivative
Original Derivative
1. Occupation
1. Law
2. Work which includes Intellectual creation
2. Tradition
3. Donation
4. Prescription
5. Succession
443
obligation
444
specific thing
96
C. Limitations
1. General limitations445
The inherent power of the No person shall be deprived When any property is
sovereign, exercised through of his property except by condemned or seized by
the legislature, to impose competent authority and competent authority in the
burdens upon the subjects from public use and always interest of health, safety or
and objects within its upon payment of just security, the owner thereof
jurisdiction, for the purpose compensation. shall not be entitled to
of raising revenues to carry compensation, unless he can
out the legitimate objects of Should this requirement be show that such
the government. not complied with, the condemnation or seizure is
courts shall protect and, in unjustified.446
proper cases, restore the
owner in his possession.
2. Specific Limitations
1. sic utere tuo ut non laedas - the owner of a thing cannot make use thereof in
such a manner as to injure the rights of a 3rd person.447
2. Nuisance448
97
b. Easements voluntarily imposed by owner
1. Servitudes
2. mortgages imposed by contract
IV. Accession450
General rule:
Exceptions:
98
B. General Rules:
1. For immovables:
The right pertaining to the owner of a thing The right pertaining to the owner of a thing
over everything produced thereby over everything that is incorporated or
attached thereto either naturally or
artificially; by external forces.
453
Natural, industrial and civil fruits
454
artificial/industrial and natural
455
spontaneous products of the soil and the young and other products of animals
456
those produced by lands of any kind through cultivation or labor
457
rents of buildings, price of leases or lands and the amount of perpetual or life annuities or other
similar income
458
The owner of the land must be known, otherwise no decision can be rendered on the ownership of
the thing planted, built or sown until a hearing shall have been accorded to whosoever is entitled
thereto.
99
a current of fresh water (not sea water, the
original identity of the deposit being lost.459
Rule
Trees uprooted/by force of river Trees uprooted and carried away by the
current of the waters belong to the owner of
the land upon which they may be case, if the
owners do not claim them within 6 months.
If such owners claim them, they shall pay
the expenses incurred in gathering or
putting them in a safe place.461
Abandoned river bed/change in the course River beds which are abandoned through
of river the natural change in the course of waters
ipso facto belong to the owners whose lands
459
To the owners of the lands adjoining the banks of rivers belong the accretions which they gradually
receive from the effects of the current of the waters.
460
The owner of the estate to which the segregated portion belongs preserves his ownership of the
segregated portion provided he removes (not merely claims) the same within the period of 2 years.
Failure to do so would have the effect of automatically transferring ownership over it to the owner of
the other estate.
461
This rule refers to uprooted trees only. If a known portion of land with trees standing thereon is
carried away by the current to another land, the rule on avulsion governs.
100
are occupied by the new course in
proportion to the area lost.462
New river bed without abandonment Whenever a river, changing its course by
natural causes, opens a new bed through a
private estate, this bed shall become of
public dominion.463
462
However, the owners of land adjoining the old bed are given preferential right to acquire the same
by paying the value thereof to promote the interest of agriculture because the riparian owners of the
old course/bed can better cultivate the same. The indemnification to be paid shall not exceed the value
of the area occupied by the new bed.
River beds are part of public domain. In this case, there is abandonment by the government of its
right over the old bed. The owner of the invaded land automatically acquires ownership of the same
without the necessity of any formal act on his part.
In proportion to the area lost implies that there are two or more owners whose lands are occupied
by the new bed. Therefore, if only one owner lost a portion of his land, the entire old bed should belong
to him.
463
The bed of a public river or stream is of public ownership. If the river changes its course and opens a
new bed, this bed becomes of public dominion even if it is on private property.
The law does not make any distinction whether the river is navigable or not.
464
One which in its natural state affords a channel for useful commerce and not such as is only sufficient
to float a banca or a canoe.
101
cultivate and develop the island.
b. Accession industrial465
c. Accession natural466
2. For movables:
a. Accession continua467
465
building, planting, sowing in good faith or bad faith, supra
466
accretion, avulsion, rivers, islands, ibid.
467
conjunction, adjunction, commixtion/confusion, specification
102
Rules: Rules: Rules:
1. Adjunction in good faith: 1. Mixture by will of both 1. Worker and owner of the
the owners or by chance: materials in good faith:
If the union took place
without bad faith, the owner a. Their rights shall first The worker becomes the
of the principal thing be governed by their owner of the
acquires the accessory, with stipulations. work/transformed thing but
the obligation to indemnify he must indemnify the
the owner of the accessory b. If the things mixed are owner of the material for its
for its value. of the same kind and quality, value.
there is no conflict of rights,
2. Adjunction in bad faith: and the mixture can easily be Exception:
divided between the 2
If the union took place in owners. If the material is more
bad faith, the following rules precious or of more value
shall apply: c. If the things mixed are than the work/transformed
of different kind and quality, thing, the owner of the
a. Bad faith on the part in the absence of a material may choose:
of owner of accessory: stipulation, each owner
acquires a right or interest in a. To appropriate the
i. He shall lose the the mixture in proportion to new thing to himself but
thing incorporated, and the value of his material as must pay for the value of the
in co-ownership. work or labor, or
ii. He shall be liable for
damages to the owner of the 2. Mixture caused by an b. To demand
principal thing, or the owner in good faith or by indemnity for the material.
payment of the price, chance:
including its sentimental 2. Worker in bad faith but
value as appraised by a. Their rights shall first the owner of the material in
experts. be governed by their good faith:
stipulations.
iii. The principal may The owner of the material
demand for the delivery of a b. If the things mixed are has the option either:
thing equal in kind and value of the same kind and quality,
and in all other respects to there is no conflict of rights, a. To appropriate the
that of the principal thing, and the mixture can easily be work to himself without
or the payment of the price, divided between the 2 paying the maker, OR
including its sentimental owners.
value as appraised by b. To demand the
experts. c. If the things mixed are value of the material plus
of different kind and quality, damages.
b. Bad faith on the part in the absence of a
103
of the owner of the stipulation, each owner 3. Owner of the materials in
principal: acquires a right or interest in bad faith but the worker is
the mixture in proportion to in good faith:
The owner of the the value of his material as
accessory thing is given the in co-ownership. The owner of the
option either: material is in bad faith when
3. Mixture caused by an he does not object to the
i. To require the owner owner in bad faith: employment of his materials.
of the principal thing to pay
the value of the accessory The owner in bad faith not Accordingly, he shall lose his
thing, plus damages. only forfeits the thing materials and shall have the
belonging to him but also obligation to indemnify the
ii. To have the becomes liable to pay worker for the damages he
accessory thing separated indemnity for the damages may have suffered
even if it be necessary to caused to the other owner.
destroy the principal thing, 4. Both owners are in bad
plus damages. 4. Mixture by both owners faith:
in bad faith:
iii. The accessory may Their rights shall be
demand for the delivery of a There is bad faith when the determined as though both
thing equal in kind and value mixture is made with the acted in good faith.
and in all other respects to knowledge and without the
that of the accessory thing, objection of the other
or the payment of the price, owner. Accordingly, their
including its sentimental respective rights shall be
value as appraised by determined as though both
experts. acted in good faith.
104
Adjunction Mixture Specification
Involves at least 2 things Involves at least 2 things May involve one thing (or
more) but form is changed
Things joined retain their Things mixed or confused The new object retains or
nature may either retain or lose preserves the nature of the
their respective natures original object.
468
In paintings and sculpture, writings, printed matter, engraving and lithographs, the board, metal
stone, canvas, paper or parchment shall be deemed the accessory thing.
469
Rule of importance and purpose
105
V. Quieting of Title to or Interest in and Removal or Prevention of Cloud over Title
to or Interest in Real Property
A. Requirements:
1. Plaintiff must have a legal or equitable title to, or interest in the real property
which is the subject matter of the action;
4. Plaintiff must return to the defendant all benefits he may have received from the
latter, or reimburse him for expenses that may have redounded to his benefit.
470
The action to quiet title does not apply:
a) to questions involving interpretation of documents
b) to mere written or oral assertions of claims; except:
i) if made in a legal proceeding
ii) if it is being asserted that the instrument or entry in plaintiffs favor is not what it purports
to be
c) to boundary disputes
d) to deeds by strangers to the title UNLESS purporting to convey the property of the plaintiff
e) to instruments invalid on their face
f) where the validity of the instrument involves pure questions of law
471
What is a cloud on title?
It is a semblance of title, either legal or equitable, or a claim or a right in real property, appearing in
some legal form which is, in fact, invalid or which would be inequitable to enforce
106
The plaintiff asserts his own estate and Plaintiff not only declares his own title, but
declares generally that the defendant claims also avers the source and nature of
some estate in the land, without defining it, defendants claim, points out its defect, and
and avers that the claim is without prays that it be declared void.
foundation.
C. Prescription/non-prescription of action
VI. Co-ownership
The right of common dominion which two or more persons have in a spiritual part
of a thing which is not physically divided.
A. Characteristics of co-ownership
1. In general
a. Plurality of subjects.
b. Unity of object or material indivision.
c. Recognition of ideal or intellectual shares of co-owners which determine their
rights and obligations.
472
ordinary
473
extraordinary
107
2. Special rules:
a. Concept of condominium
General rule:
Common areas shall remain undivided, and there shall be no judicial partition
thereof:
Exceptions:
1. When the project has not been rebuilt or repaired substantially to its state prior
to its damage or destruction 3 years after damage or destruction which rendered a material
part thereof unfit for use;
3. When the project has been in existence for more than 50 years, that it is obsolete
and uneconomic, and the condominium owners holding in aggregate more than 50%
interest in the common areas are opposed to restoration, remodeling or modernizing;
474
See Condominium Corporation, supra
108
4. When the project or a material part thereof has been condemned or expropriated
and the project is no longer viable, or that the condominium owners holding in aggregate
more than 70% interest in the common areas are opposed to the continuation of the
condominium regime;
5. When conditions for partition by sale set forth in the declaration of restrictions
duly registered have been met.
Master deed
(a) Description of the land on which the building or buildings and improvements
are or are to be located;
(b) Description of the building or buildings, stating the number of stories and
basements, the number of units and their accessories, if any;
(d) A statement of the exact nature of the interest acquired or to be acquired by the
purchaser in the separate units and in the common areas of the condominium project.
Where title to or the appurtenant interests in the common areas is or is to be held by a
condominium corporation, a statement to this effect shall be included;
(e) Statement of the purposes for which the building or buildings and each of the
units are intended or restricted as to use;
(f) A certificate of the registered owner of the property, if he is other than those
executing the master deed, as well as of all registered holders of any lien or encumbrance
on the property, that they consent to the registration of the deed;
(g) The following plans shall be appended to the deed as integral parts thereof:
(1) A survey plan of the land included in the project, unless a survey plan of
the same property had previously been filed in said office;
109
(h) Any reasonable restriction not contrary to law, morals or public policy regarding
the right of any condominium owner to alienate or dispose of his condominium.
Declaration of restrictions
The owner of a project shall, prior to the conveyance of any condominium therein,
register a declaration of restrictions relating to such project, which restrictions shall
constitute a lien upon each condominium in the project, and shall insure to and bind all
condominium owners in the project. Such liens, unless otherwise provided, may be
enforced by any condominium owner in the project or by the management body of such
project. The Register of Deeds shall enter and annotate the declaration of restrictions upon
the certificate of title covering the land included within the project, if the land is patented
or registered under the Land Registration or Cadastral Acts.
The declaration of restrictions shall provide for the management of the project by
anyone of the following management bodies: a condominium corporation, an association
of the condominium owners, a board of governors elected by condominium owners, or a
management agent elected by the owners or by the board named in the declaration. It shall
also provide for voting majorities quorums, notices, meeting date, and other rules
governing such body or bodies.476
Any provision of the Corporation Law to the contrary notwithstanding, the by-laws
of a condominium corporation shall provide that a stockholder or member shall not be
entitled to demand payment of his shares or interest in those cases where such right is
granted under the Corporation Law unless he consents to sell his separate interest in the
project to the corporation or to any purchaser of the corporation's choice who shall also
buy from the corporation the dissenting member or stockholder's interest. In case of
disagreement as to price, the procedure set forth in the appropriate provision of the
Corporation Law for valuation of shares shall be followed. The corporation shall have two
years within which to pay for the shares or furnish a purchaser of its choice from the time
of award. All expenses incurred in the liquidation of the interest of the dissenting member
or stockholder shall be borne by him.477
475
Sec. 4, R.A. 4726
476
Sec. 9,
477
Sec. 17
110
b. Rights and obligations of condominium owner
(1) Contributions/Dues
A. Obligations and Rights of the Owner/ Where the buyer has paid at least two
Developer (2) years of installments, the buyer is
entitled to the following rights in case he
1) Mortgage of Subdivision Lot or defaults in the payment of succeeding
Condominium Unit installments:
478
Sec. 9 (d)
479
The Subdivision and Condominium Buyers' Protective Decree
480
Realty Installment Buyer Act
111
to acquire title thereof from the act and upon full payment of the cash
mortgage.481 surrender value to the buyer. Down
payments, deposits or options on the
2) Advertisement of the Subdivision or contract shall be included in the
Condominium computation of the total number of
installment payments made.
a) Contents: The owner must
advertise only: In case where less than two (2) years of
installments were paid, the seller shall give
i. real facts, and the buyer a grace period of not less than
sixty days from the date the installment
ii. in a manner that does not
became due.
mislead or deceive the public.482
If the buyer fails to pay the
b) Improvements, facilities, etc.
installments due at the expiration of the
stated in the advertisement
grace period, the seller may cancel the
contract after thirty days from receipt by
i. Nature: Constitutes sales
483 the buyer of the notice of cancellation or
warranties
the demand for rescission of the contract
ii. Time of Completion: by a notarial act.
481
Sec. 18
482
Sec. 19
483
ibid
484
Sec. 20
112
performance bond in
accordance with Sec.
6 of this Decree is
filed.485
Requirements:
113
5) Issuance of Title to the Buyer by the
Owner or Developer
Rules on:
a) Real Taxes:
1) Paid by owner or
developer unless title is
passed to the buyer.
2) Buyer who actually
occupied and possessed a
lot or unit is liable for
taxes to the owner or
developer from the year
following such
occupation or
489
possession.
b) Other Charges:
1) It cannot be collected by
489
Sec. 26
114
the owner or developer.
2) It can be collected only
by a properly organized
homeowners association
with the consent of
majority of lot or unit
buyers actually residing in
the subdivision or
490
condominium project.
9) Organization of Homeowner
Association
490
Sec. 27
491
Sec. 28
492
Sec. 29
115
the buyers and residents, and for
the community development493
Grounds: Grounds:
a) Three (3) years after damage or Those provided for by law on corporations.
destruction to the projects which renders
material part thereof unfit for its use prior
thereto, the project has not been rebuilt or
repaired substantially to its state prior to its
damage or destruction;
493
Sec. 30
494
P. D. No. 1216, amending Sec. 31 of this Decree
495
Action for dissolution under Rule 104 of the Rules of Court.
116
interest in common areas are opposed to
the continuation of the condominium
regime;
B. Sources of co-ownership
1. The Law497
2. Contracts
3. Succession498
4. Fortuitous event or chance499
5. Occupancy500
C. Rights of co-owners
Right to property owned in common Right as to the ideal share of each co-owner:
117
prescription by one co-owner benefits all.
d) Right to renounce part of his interest to
d) Repairs and taxes: to compel the others
reimburse necessary expenses incurred by
to share in the expenses of preservation
another co-owner
even if incurred without prior notice.503
3. Right to partition506
General rule:
503
The co-owner being compelled may exempt himself from the payment of taxes and expenses by
renouncing his share equivalent to such taxes and expenses. The value of the property at the time of
the renunciation will be the basis of the portion to be renounced.
504
Alteration is an act by virtue of which a co-owner changes the thing from the state in which the
others believe it should remain, or withdraws it from the use to which they desire it to be intended.
Expenses to improve or embellish are decided by the majority
505
Alteration is an act by virtue of which a co-owner changes the thing from the state in which the
others believe it should remain, or withdraws it from the use to which they desire it to be intended.
Expenses to improve or embellish are decided by the majority
506
The division between 2 or more persons of real or personal property which they own in common so
that each may enjoy and possess his sole estate to the exclusion of and without interference from
others
118
Exceptions:
Each co-owner shall have a right to compel the other co-owners to contribute to
the expenses of preservation507 of the thing or right owned in common and to the taxes in
proportion to their interest therein.
5. Waiver508
Any one of the co-owners may exempt himself from this obligation by renouncing
so much of his undivided interest as may be equivalent to his share of the expenses and
taxes.
507
Necessary expenses
Expenses of preservation include all those which, if not made, would endanger the existence of the
thing or reduce its value or productivity. They do not imply an improvement or increase.
There is no other remedy available against the co-owner who refuses to pay his share in the expenses
of preservation except an action to compel him to contribute such share.
Failure to contribute does not amount to a renunciation of any portion of share in the co-ownership.
The co-owner in default cannot be compelled to renounce his share therein. Renunciation is a voluntary
and free act.
508
No such waiver shall be made if it is prejudicial to the co-ownership
Rules on renunciation:
a. Total or partial.
b. Expressly made a tacit renunciation cannot produce any effect.
c. The renunciation is in reality a case of dacion en pago; the debt of the co-owner consisting of his
share in the expenses of preservation and taxes, is paid, not in money, but in an interest in property.
d. Since the renunciation refers to a portion equivalent in value to the share of the renouncing co-
owner in an existing debt, it is only logical that the other co-owners, who must should the debt of the
renouncer in exchange for the portion being renounced, should consent thereto.
e. Renunciation refers to existing debts and not to future expenses.
f. Renunciation is a free act; a co-owner may not be compelled to renounce.
g. However, waiver is not allowed if it is prejudicial to the coownership.
119
6. Right to redemption of co-owners share
D. Termination/extinguishment509
The separation, division and assignment of the thing held in common among those
to whom it may belong; the thing itself may be divided, or its value.
After partition, the portion belonging to each co-owner has been identified and
localized, so that co-ownership, in its real sense, no longer exists.
1. Effects of partition
Partition shall not prejudice third persons who do not intervene in the partition
Co-owners reciprocally bound to each other for warranty of title and quality of part
given to each (hidden defect) after partition.
Each former co-owner is deemed to have had exclusive possession of the part
allotted to him for the entire period during which the co-possession lasted;
Partition confers upon each the exclusive title over his respective share.
509
No co-owner shall be obliged to remain in the co-ownership. Each co-owner may demand at any time
the partition of the thing owned in common.
510
See Art. 500
511
under Art. 1093
120
2. Rights against individual co-owners in case of partition512
The thing shall be sold and its proceeds distributed to the co-owners.513
VII. Possession
A. Characteristics
B. How acquired
By the material occupation of a thing or the exercise of a right, or by the fact that it
is subject to the action of our will, or by the proper acts and legal formalities established
for acquiring such right.514
512
See Effects of partition, supra
513
Art. 498
The sale of the property held in common is resorted to when (1) the right to partition the property
among the co-owners is invoked by any of them but because of the nature of the property, it cannot be
subdivided or its subdivision [See Article 495 of the New Civil Code] would prejudice the interests of the
co-owners (See Section 5 of Rule 69 of the Revised Rules of Court) and (2) the co-owners are not in
agreement as to who among them shall be allotted or assigned the entire property upon
reimbursement of the shares of the other co-owners (Marina Reyes, et al. vs. Hon. Alfredo Concepcion,
et al., G.R. No. 56550, Oct. 1, 1990
The sale may be public or private, and the purchaser may be a co-owner or a third person.
514
Art. 531
121
C. Effects of Possession
Natural and industrial fruits are considered received from the time they are
gathered or severed.
Civil fruits are deemed to accrue daily and belong to the possessor in good faith in
that proportion.515
He is deemed a possessor in good faith who is not aware that there exists in his title
or mode of acquisition any flaw which invalidates it.
Mistake upon a doubtful or difficult question of law may be the basis of good
516
faith.
Good faith is always presumed, and upon him who alleges bad faith on the part of
a possessor rests the burden of proof.517
If at the time the good faith ceases, there should be any natural or industrial fruits,
the possessor shall have a right to a part of the expenses of cultivation, and to a part of the
net harvest, both in proportion to the time of the possession.
The charges shall be divided on the same basis by the two possessors.
The owner of the thing may, should he so desire, give the possessor in good faith
the right to finish the cultivation and gathering of the growing fruits, as an indemnity for
his part of the expenses of cultivation and the net proceeds; the possessor in good faith
who for any reason whatever should refuse to accept this concession, shall lose the right to
be indemnified in any other manner.518
515
Art. 544
516
Art. 526
517
Art. 527
518
Art. 545
122
b. Right to be reimbursed
Necessary expenses shall be refunded to every possessor; but only the possessor in
good faith may retain the thing until he has been reimbursed therefor.
Useful expenses shall be refunded only to the possessor in good faith with the
same right of retention, the person who has defeated him in the possession having the
option of refunding the amount of the expenses or of paying the increase in value which
the thing may have acquired by reason thereof.519
If the useful improvements can be removed without damage to the principal thing,
the possessor in good faith may remove them, unless the person who recovers the
possession exercises the option under paragraph 2 of the preceding article.
Not to be refunded to the possessor in good faith; but he may remove the
ornaments with which he has embellished the principal thing if it suffers no injury thereby,
and if his successor in the possession does not prefer to refund the amount expended.520
He who builds, plants or sows in bad faith on the land of another, loses what is
built, planted or sown without right to indemnity.521
The possessor in bad faith shall reimburse the fruits received and those which the
legitimate possessor could have received, and shall have a right only to the expenses
mentioned in paragraph 1 of Article 546522 and in Article 443.523 The expenses incurred in
improvements for pure luxury or mere pleasure shall not be refunded to the possessor in
bad faith, but he may remove the objects for which such expenses have been incurred,
provided that the thing suffers no injury thereby, and that the lawful possessor does not
prefer to retain them by paying the value they may have at the time he enters into
possession.524
519
Art. 546
520
Art. 548
521
Art. 449
522
supra
523
See Reference
524
Art. 549
123
A possessor in good faith shall not be liable for the deterioration or loss of the
thing possessed, except in cases in which it is proved that he has acted with fraudulent
intent or negligence, after the judicial summons.525
A possessor in bad faith shall be liable for deterioration or loss in every case, even
if caused by a fortuitous event.
If the possessor of a movable lost or which the owner has been unlawfully
deprived, has acquired it in good faith at a public sale, the owner cannot obtain its return
without reimbursing the price paid therefor.
Where goods are sold by a person who is not the owner thereof, and who does not
sell them under authority or with the consent of the owner, the buyer acquires no better
title to the goods than the seller had, unless the owner of the goods is by his conduct
precluded from denying the seller's authority to sell.
1. Period to Recover
The provisions of Articles 559 and 1505529 shall be observed with regard to the
right of the owner to recover personal property lost or of which he has been illegally
deprived, as well as with respect to movables acquired in a public sale, fair, or market, or
from a merchant's store.530
525
Art. 552
526
Art. 559
527
Art. 1505 (3)
528
Ten (10) years in case of immovables (Art. 1134)
529
supra
530
Art. 1132
124
Movables possessed through a crime can never be acquired through prescription by
the offender.531
Actions to recover movables shall prescribe eight (8) years from the time the
possession thereof is lost, unless the possessor has acquired the ownership by prescription
for a less period, according to Articles 1132,532 and without prejudice to the provisions of
Articles 559, 1505, and 1133.533
Whoever finds a movable, which is not treasure, must return it to its previous
possessor. If the latter is unknown, the finder shall immediately deposit it with the mayor
of the city or municipality where the finding has taken place.
The finding shall be publicly announced by the mayor for two consecutive weeks in
the way he deems best.
Six months from the publication having elapsed without the owner having
appeared, the thing found, or its value, shall be awarded to the finder. The finder and the
owner shall be obliged, as the case may be, to reimburse the expenses.534
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 thing found.535
Where the seller of goods has a voidable title thereto, but his title has not been
avoided at the time of the sale, the buyer acquires a good title to the goods, provided he
buys them in good faith, for value, and without notice of the seller's defect of title.536
531
Art. 1133
532
supra
533
Id., Art. 1140
534
Art. 719
535
Art. 720
536
Art. 1506
125
E. In concept of owner, holder, in ones own name, in name of
another537
Possessor of the Possessor holds it Possessor claims the For whom the thing
thing or right, by his merely to keep or thing for himself is held by the
actions, is enjoy it, the possessor
considered or is ownership
believed by other pertaining to another
people as the owner, person; possessor
regardless of the acknowledges in
good or bad faith of another a superior
the possessor right which he
believes to be
ownership.
2. Possession acquired and enjoyed in concept of owner538 can serve as title for
acquisitive prescription
3. Person in concept of owner has in his favor the legal presumption of just title539
537
None of these holders assert a claim of ownership in himself over the thing but they may be
considered as possessors in the concept of owner, or under claim of ownership, with respect to the right
they respectively exercise over the thing.
538
a. Possession has to be in concept of owner, public, peaceful and uninterrupted
b. Title short of ownership
539
prima facie
540
natural and industrial gathered or severed; civil accrue daily
126
7. Possessor in good faith entitled to part of net harvest and part of expenses of
cultivation if there are natural or industrial fruits;541 owner has option to require possessor
to finish cultivation and gathering of fruits and give net proceeds as indemnity for his part
of expenses; if possessor in good faith refuses barred from indemnification in other
manner
9. Possessor in good faith has right to be reimbursed for useful expenses with right
of retention; owner has option of paying expenses or paying the increase in value of
property which thing acquired by reason of useful expenses
10. Possessor in good faith may remove improvements if can be done w/o damage
to principal thing- unless owner exercises option of paying; possessor in bad faith not
entitled.
11. Possessor in good faith and bad faith may not be entitled to payment for
luxurious expense but may remove them provided principal is not injured provided
owner does not refund the amount expended
12. Improvements caused by nature or time to inure to the benefit of person who
has succeeded in recovering possession
13. Wild animals possessed while in ones control; domesticated possessed if they
retain habit of returning back home
14. One who recovers, according to law, possession unjustly lost is deemed to have
enjoyed it w/o interruption
541
proportionate to time of possession
127
G. Loss/termination
(3) By the destruction or total loss of the thing544, or because it goes out of
commerce;
(4) By the possession of another, subject to the provisions of article 537545, if the
new possession has lasted longer than one year546. But the real right of possession is not
lost till after the lapse of ten years.547
VIII. Usufruct
A. Characteristics
1. A real right;
2. Of temporary duration;
3. Transmissible;
4. May be constituted on real or personal property, consummable or non
consummable, tangible or intangible, the ownership of which is vested on another
542
The voluntary renunciation of all rights which a person has over a thing thereby allowing a third
person to acquire ownership or possession thereof by means of occupancy;
By voluntary abandonment, thing becomes without an owner or possessor and is converted into res
nullius and may thus be acquired by a third person by occupation;
Abandonment which converts the thing into res nullius, ownership of which may be acquired by
occupation can hardly apply to land, as to which said mode of acquisition is not available
543
The complete transmission of the thing or right to another by any lawful manner; -the effect is that
he who was the owner or possessor is no longer so
544
A thing is lost when it perishes, or goes out of commerce, or disappears in such a way that its
existence is unknown, or cannot be recovered
545
see Reference
546
This refers to possession de facto and not de jure
547
Art. 555
548
Recovered in an reivindicatory action or in an action to recover the better right of possession
128
B. Classification
2. Origin - legal;
- voluntary;
- mixed
129
C. Rights and obligations of usufructuary
Rights Obligations549
1. To civil, natural & industrial fruits of 1. Pay expenses to 3rd persons for
property cultivation & production at beginning of
usufruct; whose who have right to fruits
2. To hidden treasure as stranger should reimburse expenses incurred
6. To fruits growing at time usufruct begins; 6. Obliged to make expenses due to his
growing fruits at termination of usufruct fault; cannot escape by renouncing usufruct
belongs to owner
7. Pay legal interest from extraordinary
7. To necessary expenses from cultivation at expenses made by owner
end of usufruct
8. Payment of expenses, charges & taxes
8. To enjoy accessions & servitudes in its affecting fruits
favor & all benefits inherent therein
549
Arts. 583-602
550
mutuum
551
appraisal of movables & description
552
1. not applicable to parents who are usufructuary of children except when 2nd marriage contracted
2. excused allowed by owner, not required by law or no one will be injured
130
9. To make use of dead trunks of fruit 9. Payment of interest on amount paid by
bearing trees & shrubs or those owner charges on capital
uprooted/cut by accident but obliged to
plant anew 10. Obliged to notify owner of act of 3rd
person prejudicial to rights of ownership
10. Usufructuary of woodland ordinary he is liable if he does not do so for damages
cutting as owner does habitually or custom as if it was caused through his own fault
of place; cannot cut down trees unless it is
for the restoration of improvement of 11. Expenses, cost & liabilities in suits
things in usufruct must notify owner first brought with regard to usufructuary borne
by usufructuary
11. To leave dead, uprooted trees at the
disposal of owner with right to demand that
owner should clear & remove them if
caused by calamity or extraordinary event
impossible to replace them
131
D. Rights of the owner
1. Alienate thing
2. Cant alter form or substance
3. Cant do anything prejudicial to usufructuary
4. Construct any works
5. Make any improvement provided it does not diminish value or usufruct or
prejudice right of usufructuary
E. Extinction/termination
IX. Easements
Continuous easements are those the use of which is or may be incessant, without
the intervention of any act of man.
553
such as emancipation of the child (Art. 603)
A usufruct is not extinguished by bad use of the thing in usufruct
554
Art. 613
132
Discontinuous easements are those which are used at intervals and depend upon
the acts of man.
Apparent easements are those which are made known and are continually kept in
view by external signs that reveal the use and enjoyment of the same.
A positive easement is one which imposes upon the owner of the servient estate
the obligation of allowing something to be done or of doing it himself, and a negative
easement, that which prohibits the owner of the servient estate from doing something
which he could lawfully do if the easement did not exist.556
A. Characteristics
a) It is a real right but will affect third persons only when duly registered
b) It is enjoyed over another immovable, never on ones own property
c) It involves two neighboring estates (in case of real easements)
d) It is inseparable from the estate to which it is attached, and, therefore, cannot be
alienated independently of the estate
e) It is indivisible for it is not affected by the division of the estate between two or
more persons
f) It is a right limited by the needs of the dominant owner or estate, without
possession
g) It cannot consist in the doing of an act unless the act is accessory in relation to a
real easement
h) It is a limitation on the servient owners rights of ownership for the benefit of
the dominant owner; and, therefore, it is not presumed.
555
Art. 615
556
Art. 616
133
B. Classification
1. Legal easements
They are easements imposed by law and which have for their object either public
use or the interest of private persons.
a. Right of way
The right granted to the owner of an estate which is surrounded by other estates
belonging to other persons and without an adequate outlet to a public highway to demand
that he be allowed a passageway throughout such neighboring estates after payment of
proper indemnity.557
2. Voluntary easements558
557
Requisites:
1. Claimant must be an owner of enclosed immovable or one with real right
2. There must be no adequate outlet to a public highway
3. Right of way must be absolutely necessary
4. Isolation must not be due to the claimants own act
5. Easement must be established at the point least prejudicial to the servient estate
6. Payment of proper indemnity
Special cause of extinction: the opening of a public road, or joining the dominant tenement to
another with exit on a public road.
The extinction is NOT automatic. There must be a demand for extinction coupled with tender of
indemnity by the servient owner.
558
Art. 688; see Reference
559
see In re: Petition for cancellation of condition annotated on Transfer certificate of title no. 54417,
Quezon city, Dra. Rafaela v. Trias, vs. Gregorio Araneta, Inc., G.R. No. L-20786, October 30, 1965
134
C. Modes of Acquiring Easements
1. Compulsory easements
When the distances in Article 670565 are not observed, the owner of a wall which is
not party wall, adjoining a tenement or piece of land belonging to another, can make in it
openings to admit light at the height of the ceiling joints or immediately under the ceiling,
and of the size of thirty centimeters square, and, in every case, with an iron grating
imbedded in the wall and with a wire screen.
560
Art. 620
561
Art. 621
562
Art. 622
563
Art. 623
564
Art. 624
565
See Reference
135
Nevertheless, the owner of the tenement or property adjoining the wall in which
the openings are made can close them should he acquire part-ownership thereof, if there
be no stipulation to the contrary.
Neither can side or oblique views upon or towards such conterminous property be
had, unless there be a distance of sixty centimeters.
The distance referred to shall be measured in cases of direct views from the outer
line of the wall when the openings do not project, from the outer line of the latter when
they do, and in cases of oblique view from the dividing line between the two properties.568
Whenever by any title a right has been acquired to have direct views, balconies or
belvederes overlooking an adjoining property, the owner of the servient estate cannot build
thereon at less than a distance of three meters to be measured in the manner provided in
Article 671.571 Any stipulation permitting distances less than those prescribed in article 670
is void.572
566
Art. 669
567
Art. 670
568
Art. 671
569
supra
570
Art. 672
571
supra
572
Art. 673
136
D. Rights and obligations of dominant and subservient estate
E. How terminated
X. Nuisance
A. Definition
B. Classification
The doing of or the failure One which violates only A thing may be a private
to do something that private rights and produces nuisance without being a
injuriously affects safety, damage to but one or few public one or a public
health, or morals of the persons, and cannot be said nuisance without being a
public, or works some to be public. private one.
substantial annoyance,
inconvenience, or injury to
the public.
573
Art. 694
137
C. Remedies
574
Art. 699
575
The remedies are not exclusive but cumulative;
All of the may be availed of by public officers, and the last two by private persons, if the nuisance is
especially injurious to the latter
Role of district health officer and others with respect to public nuisance:
The district health officer is charged with the duty to see to it that one or all of the remedies against a
public nuisance are availed of;
He shall determine whether the third remedy, a is the best remedy against a public nuisance;
the remedy must be availed of only with the intervention of the district health officer;
It does not necessarily follow that the failure to observe art. 702 is in itself a ground for the award for
damages;
Art. 702 does not empower the district officer to abate a public nuisance to the exclusion of all other
authorities;
The action must be commenced by the city or municipal mayor; but a private person may also file an
action if the public nuisance is especially injurious to him
576
Art. 705
577
Art. 706
138
XI. Modes of Acquiring Ownership
Ownership and other real rights over property are acquired and transmitted by law,
by donation, by testate and intestate succession, and in consequence of certain contracts,
by tradition.
A. Occupation
B. Donation
1. Definition
When a person gives to another a thing or right on account of the latter's merits or
of the services rendered by him to the donor, provided they do not constitute a
demandable debt, or when the gift imposes upon the donee a burden which is less than the
value of the thing given, there is also a donation582
Acceptance must be made during the lifetime of the donor and of the donee.583
578
Art. 712
579
such as animals that are the object of hunting and fishing, hidden treasure and abandoned movables
580
Art. 713
581
Art. 725
582
Art. 726
583
Art. 746
139
2. Characteristics
A person may not donate more than he can give by will and a person may not
receive by way of donation more than what the donor is allowed by law to give by will;
otherwise the donation shall be inofficious and shall be reduced with regard to the
excess.585
The donation may comprehend all the present property of the donor, or part
thereof, provided he reserves, in full ownership or in usufruct, sufficient means for the
support of himself, and of all relatives who, at the time of the acceptance of the donation,
are by law entitled to be supported by the donor. Without such reservation, the donation
shall be reduced in petition of any person affected.587
The donor may provide for reversion, whereby the property donated shall go
back to the donor or some other person.588
584
What may be given:
All or part of donors present property provided he reserves sufficient means for the support of the
ff:
a) himself
b) relatives who by law are entitled to his support
c) legitimes shall not be impaired
when w/o reservation or if inofficious, may be reduced on petition of persons affected.
Except: conditional donation & donation mortis causa
Except: future property
585
See Art. 752
586
1. Future property cannot be donated.
2. Present property that can be donated:
a) if the donor has forced heirs: he cannot give or receive by donation more than he can give of
receive by will
b) if the donor has no forced heirs: donation may include all present property provided he
reserves in full ownership or in usufruct:
1) the amount necessary to support him, and
2) those relatives entitled to support from him
3) property sufficient to pay the donors debt contracted prior to the donation.
3. Donation should not prejudice creditors
4. Donee must reserve sufficient means for his support and for his relatives which are entitled to be
supported by him.
587
A donor may donate all his present property or part thereof provided he reserves sufficient property
in ownership or in usufruct for the support of himself and of all relatives who are entitled to be
supported by him at the time of the perfection of the donation
588
See Art. 757
A reversion in favor of the donor may be validly established for any case and circumstances;
140
3. Kinds
When the donor intends that the donation shall take effect during the lifetime of
the donor, though the property shall not be delivered till after the donor's death.
The fruits of the property from the time of the acceptance of the donation, shall
pertain to the donee, unless the donor provides otherwise.590
Those which are made before its celebration, in consideration of the same, and in
favor of one or both of the future spouses.591
These donations are governed by the rules on ordinary donations, insofar as they
are not modified by the following articles592
(1) If the marriage is not celebrated or judicially declared void ab initio except
donations made in the marriage settlements, which shall be governed by Article 81;593
(2) When the marriage takes place without the consent of the parents or guardian,
as required by law;
(3) When the marriage is annulled, and the donee acted in bad faith;
(4) Upon legal separation, the donee being the guilty spouse;
(5) If it is with a resolutory condition and the condition is complied with;
(6) When the donee has committed an act of ingratitude as specified by the
provisions of the Civil Code on donations in general594
If the revision is in favor of other persons, such other persons must be living at the time of the
donation
589
In case of doubt with regard to nature of donation: inter vivos
590
Art. 729
591
Art. 82, FC
592
Art. 83, id.
593
supra
594
Art. 86, id.
141
c. Donation Mortis Causa
Donations which are to take effect upon the death of the donor partake of the
nature of testamentary provisions, and shall be governed by the rules on Succession.595
d. Onerous Donation
Donations with an onerous cause shall be governed by the rules on contracts and
remuneratory donations as regards that portion which exceeds the value of the burden
imposed.596
e. Simple, modal, conditional
4. Formalities required
595
Art. 728
Title conveyed upon donors death
Void if donor survives done
Always revocable
Must comply with the formalities required by law for the execution of wills
596
Art. 733
142
The donation and acceptance
must be written in a public or
private instrument, regardless of
value.
b. Perfection597
(1) Movables
If the value of the personal property donated exceeds five thousand pesos, the
donation and the acceptance shall be made in writing. Otherwise, the donation shall be
void.598
(2) Immovables
In order that the donation may be valid, it must be made in a public document,
specifying therein the property donated and the value of the charges which the donee must
satisfy.
The acceptance may be made in the same deed of donation or in a separate public
document, but it shall not take effect unless it is done during the lifetime of the donor.
If the acceptance is made in a separate instrument, the donor shall be notified
thereof in an authentic form, and this step shall be noted in both instruments.599
597
See (a) How made and accepted, supra
598
Art. 748
599
Art. 749
143
5. Qualifications of donor, donee
Donor Donee:
All persons who may contract and 1. natural & juridical persons w/c are not especially
dispose of their property disqualified by law
a) by themselves
- if pure & simple donation
- if it does not require written
acceptance
6. Effects of donation/limitations
a. In general
1. donee may demand the delivery of the 1. Future property cannot be donated.
thing donated
2. Present property that can be donated:
2. donee is subrogated to the rights of the
donor in the property a) if the donor has forced heirs: he
cannot give or receive by donation
3. in donations propter nuptias, the donor more than he can give of receive by
must release the property from will
encumbrances, except servitudes
b) if the donor has no forced heirs:
4. donors warranty exists if donation may include all present
property provided he reserves in full
144
a. expressed ownership or in usufruct:
b. donation is propter nuptias
c. donation is onerous 1) the amount necessary to support
d. donor is in bad faith him, and
2) those relatives entitled to
5. when the donation is made to several support from him
donees jointly, they are entitled to equal 3) property sufficient to pay the
portions, without accretion, unless the donors debt contracted prior to
contrary is stipulated. the donation.
b. Double donations
Rule:
Priority in time, priority in right
1. If movable one who first take possession in good faith
2. If immovable one who recorded in registry of property in good faith
- no inscription, one who first took possession in good faith
- in absence thereof, one who can present oldest title600
c. Excessive/inofficious
600
Art. 1544
145
d. Scope of amount
The donation may comprehend all the present property of the donor, or part
thereof, provided he reserves, in full ownership or in usufruct, sufficient means for the
support of himself, and of all relatives who, at the time of the acceptance of the donation,
are by law entitled to be supported by the donor. Without such reservation, the donation
shall be reduced in petition of any person affected.601
e. In fraud of creditors
There being no stipulation regarding the payment of debts, the donee shall be
responsible therefor only when the donation has been made in fraud of creditors.
The donation is always presumed to be in fraud of creditors, when at the time
thereof the donor did not reserve sufficient property to pay his debts prior to the
donation.605
601
Art. 750
602
Art. 751
603
See Reference
604
Art. 752
605
Art. 759
146
7. Void Donations
(1) Made between persons who were guilty of adultery or concubinage at the time
of the donation;
(2) Made between persons found guilty of the same criminal offense, in
consideration thereof;
(3) Made to a public officer or his wife, descendants and ascendants, by reason of
his office.
In the case referred to in No. 1, the action for declaration of nullity may be brought
by the spouse of the donor or donee; and the guilt of the donor and donee may be proved
by preponderance of evidence in the same action.606
(1) The priest who heard the confession of the testator during his last illness, or the
minister of the gospel who extended spiritual aid to him during the same period;
(2) The relatives of such priest or minister of the gospel within the fourth degree,
the church, order, chapter, community, organization, or institution to which such priest or
minister may belong;
(4) Any attesting witness to the execution of a will, the spouse, parents, or children,
or any one claiming under such witness, spouse, parents, or children;
(5) Any physician, surgeon, nurse, health officer or druggist who took care of the
testator during his last illness;
606
Art. 739
607
Art. 740
608
Art. 1027
147
8. Revocation609 or reduction610
Revocation Reduction612
Ipso jure revocation, no need needs court action needs court action
for action., court decision is
merely declaratory
Extent: portion which may Extent: whole portion but Extent: Whole portion
impair legitime of heirs court may rule partial returned
609
Affects the whole donation and is allowed during the lifetime of the donor
Applies only to donation inter vivos
Not applicable to onerous donations
610
Generally affects a portion only of the donation and is allowed during the lifetime of the donor or
after his death
611
Art. 760
612
ibid
613
Donee commits offense against person, honor, property of donor, spouse, children under his
parental authority
Donee imputes to donor any criminal offense or any cat involving moral turpitude even if he should
prove it unless act/crime has been committed against donee himself, spouse or children under his
parental authority
Donee unduly refuses to give support to donor when legally or morally bound to give support to
donor
148
revocation only
Right of action transmitted Right of action at instance of Heirs cant file action
to heirs donor but may be
transmitted to heirs
149
c. Effects
In this case, the property donated shall be returned to the donor, the alienations
made by the donee and the mortgages imposed thereon by him being void, with the
limitations established, with regard to third persons, by the Mortgage Law and the Land
Registration laws.615
The donor shall have a right to demand from the donee the value of property
alienated which he cannot recover from third persons, or the sum for which the same has
been mortgaged.
The value of said property shall be fixed as of the time of the donation.617
When the donation is revoked for any of the causes stated in Article 760, 618 or by
reason of ingratitude, or when it is reduced because it is inofficious, the donee shall not
return the fruits except from the filing of the complaint.
If the revocation is based upon noncompliance with any of the conditions imposed
in the donation, the donee shall return not only the property but also the fruits thereof
which he may have received after having failed to fulfill the condition.619
614
Art. 762
615
Art. 764, par. 2
616
Art. 766
617
Art. 767
618
See Reference
619
Art. 768
620
supra
150
For the reduction of donations, the provisions of Articles 911 and 912621 of this
Code shall also govern.
d. Prescription
The donation is revoked ipso jure by operation of law, by the happening of any of
the events mentioned in Article 760; 622
The period to bring an action is four years, and the day from which the period shall
begin to run depends upon the cause for the revocation or reduction;
If the donor dies within the period of prescription, the action is transmitted to his
legitimate and illegitimate children and descendants;
The surviving spouse and the ascendants of the donor are not included.
c. Inofficious Donations
(1) If the donor, after the donation, should have legitimate or legitimated or
illegitimate children, even though they be posthumous;
(2) If the child of the donor, whom the latter believed to be dead when he made
the donation, should turn out to be living;
The donation shall be revoked or reduced insofar as it exceeds the portion that may
be freely disposed of by will, taking into account the whole estate of the donor at the time
of the birth, appearance or adoption of a child.624
621
See Reference
622
ibid
623
Art. 760
624
Art. 761
625
supra
151
the donations from taking effect during the life of the donor, nor shall it bar the donee
from appropriating the fruits.626
Only those who at the time of the donor's death have a right to the legitime and
their heirs and successors in interest may ask for the reduction or inofficious donations.
Those referred to in the preceding paragraph cannot renounce their right during
the lifetime of the donor, either by express declaration, or by consenting to the donation.
The donees, devisees and legatees, who are not entitled to the legitime and the
creditors of the deceased can neither ask for the reduction nor avail themselves thereof.627
If, there being two or more donations, the disposable portion is not sufficient to
cover all of them, those of the more recent date shall be suppressed or reduced with regard
to the excess.628
d. Ingratitude
The donation may also be revoked at the instance of the donor, by reason of
ingratitude in the following cases:
(1) 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 his parental authority;
(2) If the donee imputes to the donor any criminal offense, or any act involving
moral turpitude, even though he should prove it, unless the crime or the act has been
committed against the donee himself, his wife or children under his authority;
(3) If he unduly refuses him support when the donee is legally or morally bound to
give support to the donor.629
626
Art. 771
627
Art. 772
628
Art. 773
629
Art. 765
630
Art. 769
152
PRESCRIPTION
I. Definition
One acquires ownership and other real rights through the lapse of time in the
manner and under the conditions laid down by law.631
A. Acquisitive632
1. Characteristics
a. Relationship between the occupant and the land in terms of possession is capable
of producing legal consequences; it is the possessor who is the actor
b. Requires possession by a claimant who is not the owner
2. Ordinary634
a. Good Faith
The good faith of the possessor consists in the reasonable belief that the person
from whom he received the thing was the owner thereof, and could transmit his
ownership.635
631
Art. 1106
632
One acquires ownership and other real rights through the lapse of time in the manner and under the
conditions laid down by law.
633
Art. 1117
634
requires possession of things in good faith and with just title for the time fixed by law
635
Art. 1127
153
b. Just title
There is just title when the adverse claimant came into possession of the property
through one of the modes recognized by law for the acquisition of ownership or other real
rights, but the grantor was not the owner or could not transmit any right.636
The title for prescription must be true and valid.637
3. Extraordinary
Ownership and other real rights over immovables also prescribe through
uninterrupted adverse possession thereof for thirty (30) years, without need of title or of
good faith.639
4. Requisites
Possession is naturally interrupted when through any cause it should cease for more
than one year.
The old possession is not revived if a new possession should be exercised by the
same adverse claimant.643
If the natural interruption is for only one year or less, the time elapsed shall be
counted in favor of the prescription.644
636
Art. 1129
637
Art. 1130
638
Art. 1132, 2nd par.
639
Art. 1137
640
Art. 1118
641
Art. 1119
642
Art. 1120
643
Art. 1121
644
Art. 1122
154
Civil interruption is produced by judicial summons to the possessor.645
Judicial summons shall be deemed not to have been issued and shall not give rise to
interruption:
(2) If the plaintiff should desist from the complaint or should allow the
proceedings to lapse;
In all these cases, the period of the interruption shall be counted for the
prescription.646
Any express or tacit recognition which the possessor may make of the owner's right
also interrupts possession.647
5. Period
With regard to the right of the owner to recover personal property lost or of which
he has been illegally deprived, as well as with respect to movables acquired in a public sale,
fair, or market, or from a merchant's store the provisions of articles 559 and 1505 648 of this
Code shall be observed.649
Ownership and other real rights over immovable property are acquired by ordinary
prescription through possession of ten (10) years.650
In the computation of time necessary for prescription the following rules shall be
observed:
645
Art. 1123
646
Art. 1124
647
Art. 1125
648
See Reference
649
Art. 1132
650
Art. 1134
155
(1) The present possessor may complete the period necessary for
prescription by tacking his possession to that of his grantor or predecessor in
interest;
(2) It is presumed that the present possessor who was also the possessor at
a previous time, has continued to be in possession during the intervening time,
unless there is proof to the contrary;
(3) The first day shall be excluded and the last day included.651
B. Extinctive
Rights and actions are lost through the lapse of time in the manner and under the
conditions laid down by law.
1. Characteristics
1. One does not look to the act of the possessor but to the neglect of the owner
2. Requires inaction of the owner or neglect of one with a right to bring his action
3. Applies to all kinds of rights, whether real or personal
4. Produces the extinction of rights or bars a right of action
5. Results in the loss of a real or personal right, or bars the cause of action to
enforce said right
6. Should be affirmatively pleaded and proved to bar the action or claim of the
adverse party
651
Art. 1138
652
Art. 1133
653
See Arts. 533-534
654
Alfonso vs. Jaime, L-12754, Jan. 30, 1960
655
Jocson, et al. vs. Silos, L-12998, July 25, 1960
156
2. Requisites
3. Periods
Movables Immovables
Good Faith
4 years 10 years
Bad Faith
8 years656 30 years
656
except where the loss was due to a crime in which case, the offender can not acquire the movable by
prescription, and an action to recover it from him is imprescriptible.
157
II. No Prescription Applicable
A. By Offender
The owner, or any person who by virtue of a real right may cultivate or use any
immovable, which is surrounded by other immovables pertaining to other persons and
without adequate outlet to a public highway, is entitled to demand a right of way through
the neighboring estates, after payment of the proper indemnity.
Should this easement be established in such a manner that its use may be
continuous for all the needs of the dominant estate, establishing a permanent passage, the
indemnity shall consist of the value of the land occupied and the amount of the damage
caused to the servient estate.
In case the right of way is limited to the necessary passage for the cultivation of the
estate surrounded by others and for the gathering of its crops through the servient estate
without a permanent way, the indemnity shall consist in the payment of the damage caused
by such encumbrance.
This easement is not compulsory if the isolation of the immovable is due to the
proprietor's own acts.659
2. To abate a nuisance660
657
Art. 1133
658
See reference
659
Art. 649
660
Art. 1143
158
D. Action to quiet title if plaintiff in possession
If the plaintiff is in possession of the property, the action does not prescribe.661
E. Void contracts
The action or defense for the declaration of the inexistence of a contract does not
prescribe.662
A donor or testator may prohibit partition for a period which shall not exceed
twenty years.
661
Reason: While the owner continues to be liable to an action, proceeding or suit upon the adverse
claim, he has a continuing right to be given aid by the court to ascertain and determine the nature of
such claim and its effect on his title, or to assert any superior equity in his favor. He may wait until his
possession is disturbed or his title is attacked before taking steps to vindicate his right.
662
Art. 1410
663
Art. 494
159
1. Distinguished from laches
Laches Prescription
664
e.g. roads, canals, rivers
665
e.g. public buildings
160
III. Prescription or Limitation of Actions
A. To recover movables666
B. To recover immovables667
C. Other actions
The following actions must be brought within ten (10) years from the time the right
of action accrues:
666
Art. 1140, supra
667
Art. 1141, Ibid.
668
Art. 1142
669
See reference
670
Art. 1143
671
Art. 1144
672
Art. 1145
673
Art. 1146
161
The following actions must be filed within one (1) year:
The limitations of action mentioned in Articles 1140 to 1142, and 1144 to 1147675
are without prejudice to those specified in other parts of this Code, in the Code of
Commerce, and in special laws.676
All other actions whose periods are not fixed in this Code or in other laws must be
brought within five (5) years from the time the right of action accrues.677
IV. Interruption
When the actions are filed before the court, when there is a written extrajudicial
demand by the creditors, and when there is any written acknowledgment of the debt by the
debtor.678
674
Art. 1147
675
supra
676
Art. 1148
677
Art. 1149
678
Art. 1155
162
OBLIGATIONS
I. Definition
A juridical necessity to give, to do or not to do,679 one impressed with the character
of enforceability.
679
Art. 1156
680
obligee or creditor
681
obligor or debtor
682
the subject matter of the obligation
683
Requisites:
1. it must be licit
2. it must be possible, physically & juridically
3. it must be determinate or determinable
4. it must have a possible equivalent in money
684
vinculum or juridical tie
163
III. Different Kinds of Prestations
c. W/ a term686 -
685
Art. 1181
A past thing can never be a condition. A condition is always future and uncertain.
Past event unknown to the parties.-- It is really the knowledge of the event w/c constitutes the
future. It is the knowledge w/c is future and uncertain.
Effect of Impossible Condition.-- It annuls the obligation w/c depends upon them. The entire
juridical tie is tainted by the impossible condition.
686
see Reference
164
3. Plurality of subjects b. Alternative - where the debtor
must perform any of the
prestations687
687
The characteristic of alternative obligations is that, several objects being due, the fulfillment of one is
sufficient (Tolentino)
688
Art. 1206
689
there are as many obligations as there are debtors multiplied by the number of creditors.
Effects of Joint Liability:
1. The demand by one creditor upon one debtor, produces the effects of default only w/ respect to the
creditor who demanded and the debtor on whom the demand was made, but not w/ respect to the
others;
2. The interruption of prescription by the judicial demand of one creditor upon a debtor, does not
benefit the other creditors nor interrupt the prescription as to other debtors. On the same principle, a
partial payment or acknowledgement made by one of several joint debtors does not stop the running of
the statute of limitations as to the others;
3. The vices of each obligation arising from the personal defect of a particular debtor or creditor does
not affect the obligation or rights of the others;
4. The insolvency of a debtor does not increase the responsibility of his co-debtors, nor does it
authorize a creditor to demand anything from his co-creditors;
5. In the joint divisible obligation, the defense of res judicata is not extended from one debtor to
another. (Manresa.)
165
b. Indivisible - one that must be
performed in one act.690
V. Sources of Obligations692
B. Natural Obligations694
They are real obligations to which the law denies an action, but which the debtor
may perform voluntarily.695
690
General rule: Obligation is indivisible w/c means that it has to be performed in one act singly. Why?
Bec. the law provides so: Unless there is an express stipulation to that effect, the creditor cannot be
compelled partially to receive the prestations in which the obligation consists. Neither may the debtor
be required to make partial payments. xxx (Art. 1248, par. 1.)
Three Exceptions to the Rule on Indivisibility:
1. When the parties so provide. (Art. 1248, par. 1.)
2. When the nature of the obligation necessarily entails performance in parts.
3. Where the law provides otherwise.
691
The purpose is to strengthen the coercive force of the obligation. When a penal clause is present,
damages do not have to be proved.
692
Obligations arise from:
1. Law
2. Contracts
3. Quasi-contracts
4. Acts or omissions punished by law and
5. Quasi-delicts.
693
Nolledo, Jose N., The Philippine Law on Obligations and Contracts Explained, 1980 Ed., p. 2
694
a. Based not on positive law but on equity and natural law
b. Do not grant such right of action to enforce their performance
695
Examples of natural obligations enumerated under the Civil Code:
1. Performance after the civil obligation has prescribed;
166
C. Extra-contractual Obligations696
2 kinds:
167
VI. Nature and Effect of obligations
A. Obligation to give702
The obligation to give a determinate thing includes that of delivering all its
accessions and accessories, even though they may not have been mentioned.705
If the thing is indeterminate or generic, he may ask that the obligation be complied
with at the expense of the debtor.706
B. Obligation to do or not to do
702
Three Accessory Obligations:
1. To take care of the thing w/ the diligence of a good father of a family until actual delivery.(Art.
1163)
2. To deliver the fruits to the creditor (fruits produced after obligation to deliver arises).(Art. 1164)
3. To deliver accessions and accessories(Art. 1166)
703
See reference
704 1st
Art. 1165, par.
705
Art. 1166
706 nd
Art. 1165 , 2 par.
707
see Art. 1244
708
see Chavez vs. Gonzales, 32 SCRA 547
168
that what has been poorly done be
undone.709
C. Breaches of obligations
a. Mora solvendi
1. Ex re obligation is to give
2. Ex persona obligation is to do715
710
see Art. 1168; Cui vs. Chan, 41 Phil. 523
709
Art. 1167
711
debtor is not liable for damages
712
Non-fulfillment of the obligation with respect to time
713
There must be a demand (judicial or extra-judicial) before delay may be incurred.
714
see Art. 1169
The general rule is that fulfillment by both parties should be simultaneous except when different
dates for the performance of obligation is fixed by the parties.
Demand is still necessary if their respective obligations are to be performed on separate dates.
715
There can be delay only in positive obligations (to give/to do). There can be no delay in negative
obligations (not to give/not to do).
169
b. Mora accipiendi
Delay of the creditor to accept the delivery of the thing w/c is the object of the
obligation
c. Compesatio morae
716
Deliberate and intentional evasion of the fulfillment of an obligation
717
Art. 1171
Future fraud cannot be waived because it would result to illusory obligation.
718
Omission of that diligence which is required by the nature of the obligation and corresponds with the
circumstances of the persons, of the time and of the place
Negligence can be waived unless the nature of the obligation or public policy requires extraordinary
diligence as in common carrier.
719
see Art. 1170
170
6. Legal excuse for breach of obligation fortuitous event;
requisites
Requisites:
4. debtor must be free from any participation in the aggravation of the injury
resulting to the creditor722
720
General Rule: No liability in case of fortuitous event.
Exceptions:
1. When expressly declared by law (e.g. Article 552(2), 1165(3), 1268, 1942, 2147, 2148 and 2159 of
the Civil Code.)
2. When expressly declared by stipulation or contract
3. When the nature of the obligation requires the assumption of risk
4 When the obligor is in default or has promised to deliver the same thing to 2 or more persons
who do not have the same interest [Article 1165(3)].
721
It must not only be the proximate cause but it must be the only and sole cause.
722
Lasam vs. Smith, 45 Phil. 657
171
D. Remedies available to creditor in cases of breach
1. Specific Performance723
723
in obligation to give specific thing
724
indemnification for damages
725
Art. 1165, par 1; see also ROC Rule 39, Sec 10
726
Art 1165, Par 2
Delivery of anything belonging to the species stipulated will be sufficient.
Debtor cannot avoid obligation by paying damages if the creditor insists on the performance.
727
Art. 1167
The court has no discretion to merely award damages to the creditor when the act can be done in
spite of the refusal or failure of debtor to do so.
Exception: Imposition of personal force or coercion upon the debtor to comply with his obligation -
tantamount to involuntary servitude and imprisonment for debt
172
2. Rescission728
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.729
The injured party may choose between the fulfillment and the rescission of the
obligation,730 with the payment of damages in either case. He may also seek rescission, even
after he has chosen fulfillment, if the latter should become impossible.
The court shall decree the rescission claimed, unless there be just cause authorizing
the fixing of a period.
This is understood to be without prejudice to the rights of third persons who have
acquired the thing, in accordance with articles 1385731 and 1388732 and the Mortgage Law.733
In case both parties have committed a breach of the obligation, the liability of the
first infractor shall be equitably tempered by the courts. If it cannot be determined which
of the parties first violated the contract, the same shall be deemed extinguished, and each
shall bear his own damages.734
728
resolution in reciprocal obligations
Only applies to reciprocal obligations, where there is reciprocity between the parties i.e. creditor
debtor relations arise from the same cause or identity of cause.
Reciprocal obligations have a tacit resolutory condition
729
Power to rescind:
Pertains to the injured party, party who did not perform not entitled to insist upon the performance
of the contract by the defendant or recover damages by reason of his own breach
rd
Rights of injured party subordinated to the rights of a 3 person to whom bad faith is not imputable
Not absolute, not permitted in casual/slight breach, may only be claimed in substantial breach
(Song Fo v. Hawaiian Philippines)
Rescission requires judicial approval to produce legal effect
Exception: object is not yet delivered and obligation has not yet been performed
If the obligation has not yet been performed: extrajudicial declaration of party willing to perform
would suffice; can refuse to perform if the other party is not yet ready to comply
If the injured party has already performed: cannot extrajudicially rescind IF the other party opposes
the rescission (otherwise, rescission produces legal effect). In the case the other party impugns
rescission, the court comes in either to: a. Declare the rescission as properly made b. Give a period to
the debtor in which to perform
730
The remedy is alternative. Party seeking rescission can only elect one between fulfillment and
rescission. There can be no partial performance and partial rescission.
731
See Reference
732
ibid
733
Art. 1191
734
Art. 1192
173
3. Damages, in any event
a. Accion subrogatoria736
Action which the creditor may exercise in place of the negligent debtor in order to
preserve or recover for the patrimony of the debtor the product of such action, and then
obtain therefrom the satisfaction of his own credit.737
b. Accion pauliana738
Creditors have the right to set aside or revoke acts which the debtor may have done
to defraud them. All acts of the debtor which reduce his patrimony in fraud of his
creditors, whether by gratuitous or onerous title, can be revoked by this action.
c. Accion directa739
Right of the lessor to go directly to sublessee for unpaid rents of the lessee.740
Right of the laborers or persons who furnish materials for a piece of work
undertaken by a contractor to go directly to the owner for any unpaid claims due to the
contractor.741
735
Art. 1170; See Reference
Recoverable damages include any and all damages that a human being may suffer. Responsibility for
damages is indivisible
736
An action against the debtors debtor
737
subrogatory action; See Art. 1177
Previous approval of court is not necessary
Plaintiff entitled only to so much as is needed to satisfy his credit, any balance shall pertain to the
debtor
Patrimony of the debtor (includes both present and future property) is liable for the obligations he
may contract by being a legal guaranty in favor of his creditors. Hence, he cannot maliciously reduce
such guaranty
738
rescissory action
An action to rescind contracts entered into by the debtor in fraud of creditors ( Arts. 1177, last
sentence and 1381, par. 3, See Reference
Payments of pre-existing obligations already due, whether natural or civil, cannot be impugned by an
accion pauliana
739
Arts. 1652, 1608, 1729 & 1893; see reference
740
See Art. 1652
741
See Art. 1729
174
VII. Kinds of Civil Obligations
A. Pure
The performance does not depend upon a future or uncertain event, or upon a past
event unknown to the parties, which is demandable at once.742
B. Conditional
1. Suspensive condition744
2. Resolutory condition745
One w/c depends solely on One where the condition is One w/c depends partly
the will of either one made to depend upon a upon the will of one of the
party.746 third person or upon parties and partly on either
chance.747 chance or the will of a third
person.
742
Art. 1179
Every obligation which contains a resolutory condition shall also be demandable, without prejudice to
the effects of the happening of the event.
When the debtor binds himself to pay when his means permit him to do so, the obligation shall be
deemed to be one with a period, subject to the provisions of Article 1197 (Art. 1180)
743
Art. 1181
744
condition precedent
745
condition subsequent
746
e.g., "I will give you my plantation in Davao provided you reside in Davao permanently."
747
e.g., "I will give you my land in Pampanga if you will pass the bar exams this year."
175
a. Obligations subject to potestative suspensive
conditions are void
When the fulfillment of the condition depends upon the sole will of the debtor, the
conditional obligation shall be void.
If it depends upon chance or upon the will of a third person, the obligation shall
take effect.748
a) Extent of retroactivity
The effects of a conditional obligation to give, once the condition has been
fulfilled, shall retroact to the day of the constitution of the obligation. When the obligation
imposes reciprocal prestations upon the parties, the fruits and interests during the
pendency of the condition shall be deemed to have been mutually compensated. If the
obligation is unilateral, the debtor shall appropriate the fruits and interests received, unless
from the nature and circumstances of the obligation it should be inferred that the intention
of the person constituting the same was different.
In obligations to do and not to do, the courts shall determine, in each case, the
retroactive effect of the condition that has been complied with.749
Rules in case of the improvement, loss or deterioration of the thing during the
pendency of the condition:
(1) If the thing is lost without the fault of the debtor, the obligation shall be
extinguished;
(2) If the thing is lost through the fault of the debtor, he shall be obliged to pay
damages; it is understood that the thing is lost when it perishes, or goes out of commerce,
or disappears in such a way that its existence is unknown or it cannot be recovered;
(3) When the thing deteriorates without the fault of the debtor, the impairment is
to be borne by the creditor;
748
Art. 1182
749
Art. 1187
176
(4) If it deteriorates through the fault of the debtor, the creditor may choose
between the rescission of the obligation and its fulfillment, with indemnity for damages in
either case;
(5) If the thing is improved by its nature, or by time, the improvement shall inure
to the benefit of the creditor;
(6) If it is improved at the expense of the debtor, he shall have no other right than
that granted to the usufructuary.750
Obligations for whose fulfillment a day certain has been fixed, which is demandable
only when that day comes.
Obligations with a resolutory period take effect at once, but terminate upon arrival
of the day certain.
If the uncertainty consists in whether the day will come or not, the obligation is
conditional.754
750
Art. 1189
751
supra
752
Art. 1190, par. 3
753
General rule:
If a period is attached in an obligation, the presumption is that it is for the benefit of both parties.
The consequence is that the creditor cannot compel the performance before the arrival of the term; the
debtor cannot compel acceptance before the arrival of the term.
754
Art. 1193
177
1. Presumption that period is for the benefit of both debtor and
creditor
Term is for the benefit of the creditor Term is for the benefit of the debtor
The creditor can demand performance The creditor cannot demand performance
anytime; but the debtor cannot insist on anytime; but the debtor can insist on
payment before the period. performance anytime.757
(1) When after the obligation has been contracted, he becomes insolvent, unless he
gives a guaranty or security for the debt;
(2) When he does not furnish to the creditor the guaranties or securities which he
has promised;
(3) When by his own acts he has impaired said guaranties or securities after their
establishment, and when through a fortuitous event they disappear, unless he immediately
gives new ones equally satisfactory;
(4) When the debtor violates any undertaking, in consideration of which the
creditor agreed to the period;
755
Art.1196
756
The obligation has already arisen except that it is not yet demandable
757
Illustrations: "I promise to pay within 60 days." This is a term for the benefit of the debtor.
"I promise to pay Clara the sum of P100,000 on or before Oct. 31, 1996." This is a term for the
benefit of the debtor.
758
Art. 1198
178
4. Resolutory period
Obligations with a resolutory period take effect at once, but terminate upon arrival
of the day certain.759
If the obligation does not fix a period, but from its nature and the circumstances it
can be inferred that a period was intended.
The courts shall also fix the duration of the period when it depends upon the will
of the debtor.
In every case, the courts shall determine such period as may under the
circumstances have been probably contemplated by the parties. Once fixed by the courts,
the period cannot be changed by them.760
D. Alternative or Facultative761
Alternative Facultative
As to contents of the obligation
There are various prestations all of w/c Only the principal prestation constitutes
constitute parts of the obligation the obligation, the accessory being only a
means to facilitate payment.
759
in diem, or resolutory
760
Art. 1197
761
Art. 1199
A person alternatively bound by different prestations shall completely perform one of them.
The creditor cannot be compelled to receive part of one and part of the other undertaking.
762
Facultative obligations always involve choice by the debtor.
In theory, it is easy to distinguish a facultative obligation from an alternative one. But in practice, it
is difficult to distinguish the two. You just have to find out what the parties really intended (Balane)
179
As to nullity
The nullity of one prestation does not The nullity of the principal prestation
invalidate the obligation, w/c is still in force invalidates the obligation and the creditor
w/ respect to those w/c have no vice cannot demand the substitute even when
this is valid.
As to choice
The right to choose may be given to the Only the debtor can choose the substitute
creditor prestation.
As to effect of loss
Only the impossibility of all the prestations The impossibility of the principal prestation
due w/o fault of the debtor extinguishes the is sufficient to extinguish the obligation,
obligation even if the substitute is possible.763
a. When only one prestation is left,764 the a. If one or some are lost through fortuitous
debtor may perform the one that is left.765 event, the creditor may choose from those
remaining.768
b. If the choice is limited through the
creditor's own acts, the debtor can ask for b. If one or some are lost through the
resolution plus damages.766 debtor's fault, the creditor has choice from
the remainder or the value of the things lost
c. If everything is lost through the debtor's plus damages.769
fault, the latter is liable to indemnify the
creditor for damages.767 c. If all are lost through the debtor's fault,
763
IV Tolentino
764
whether or not the rest of the prestations have been lost through fortuitous event or through the
fault of the debtor
765
Art. 1202
766
Art. 1203
767
Art. 1204
768
Art. 1205 (1)
769
Id. (2)
180
d. If some things are lost through the the choice of the creditor shall fall upon the
debtor's fault, the debtor can still choose price of any of them, w/ indemnity for
from those remaining. damages.770
e. If all are lost through fortuitous event, d. If some are lost through the creditor's
the obligation is extinguished. fault, the creditor may choose from the
remainder.
f. If all prestations but one are lost through
fortuitous event, and the remaining e. If all are lost through fortuitous event,
prestation was lost through the debtor's the obligation is extinguished.
fault, the latter is liable to indemnify the
creditor for damages. f. If all are lost through the creditor's fault,
the obligation is extinguished.
g. If all but one are lost through the fault of
the debtor and the last one was lost through
through fortuitous event, the obligation is
extinguished.
The concurrence of two or more creditors or of two or more debtors in one and
the same obligation does not imply that each one of the former has a right to demand, or
that each one of the latter is bound to render, entire compliance with the prestation.
There is a solidary liability only when the obligation expressly so states, or when the
law or the nature of the obligation requires solidarity.771
770
Id. (3)
771
Art. 1207
181
b. Obligation presumed to be divided into as many equal
shares as there are creditors or debtors
The credit or debt or deemed divided into as many shares as there are creditors or
debtors to each other, each resulting credit or debt being considered distinct from one
another.772
c. Each credit is distinct from one another, therefore a
joint debtor cannot be required to pay for the share of
another with debtor, although he may pay if he wants
to
If the division is impossible, the right of the creditors may be prejudiced only by
their collective acts, and the debt can be enforced only by proceeding against all the
debtors. If one of the latter should be insolvent, the others shall not be liable for his
share.773
Generally, obligations are indivisible since the integrity of the obligations requires
their payment or performance completely.775
A joint indivisible obligation gives rise to indemnity for damages from the time
anyone of the debtors does not comply with his undertaking. The debtors who may have
been ready to fulfill their promises shall not contribute to the indemnity beyond the
corresponding portion of the price of the thing or of the value of the service in which the
obligation consists.776
772
see Art. 1208
773
Art. 1209
774
ibid
775
Arts. 1233 and 1248
776
Art. 1224
182
C. Solidary obligation
The debtor may pay any one of the solidary creditors; but if any demand, judicial or
extrajudicial, has been made by one of them, payment should be made to him.777
Novation, compensation, confusion or remission of the debt, made by any of the
solidary creditors or with any of the solidary debtors, shall extinguish the obligation,
without prejudice to the provisions of Article 1219.778
The creditor who may have executed any of these acts, as well as he who collects
the debt, shall be liable to the others for the share in the obligation corresponding to
them.779
The creditor may proceed against any one of the solidary debtors or some or all of
them simultaneously. The demand made against one of them shall not be an obstacle to
those which may subsequently be directed against the others, so long as the debt has not
been fully collected.780
Payment made by one of the solidary debtors extinguishes the obligation. If two or
more solidary debtors offer to pay, the creditor may choose which offer to accept.
He who made the payment may claim from his co-debtors only the share which
corresponds to each, with the interest for the payment already made. If the payment is
made before the debt is due, no interest for the intervening period may be demanded.
When one of the solidary debtors cannot, because of his insolvency, reimburse his
share to the debtor paying the obligation, such share shall be borne by all his co-debtors, in
proportion to the debt of each.781
A solidary debtor may, in actions filed by the creditor, avail himself of all defenses
which are derived from the nature of the obligation and of those which are personal to
him, or pertain to his own share. With respect to those which personally belong to the
777
Art. 1214
778
The remission made by the creditor of the share which affects one of the solidary debtors does not
release the latter from his responsibility towards the co-debtors, in case the debt had been totally paid
by anyone of them before the remission was effected.
779
Art. 1215
780
Art. 1216
781
Art. 1217
183
others, he may avail himself thereof only as regards that part of the debt for which the
latter are responsible.782
3. Each one of solidary creditors may do whatever may be useful
to the others, but not anything prejudicial to them783
The creditor who may have executed any of these acts, as well as he who collects
the debt, is liable to the others for the share in the obligation corresponding to them.785
Obligations to give definite things and those which are not susceptible of partial
performance shall be deemed to be indivisible.
When the obligation has for its object the execution of a certain number of days of
work, the accomplishment of work by metrical units, or analogous things which by their
nature are susceptible of partial performance, it shall be divisible.
The penalty shall substitute the indemnity for damages and the payment of interests
in case of noncompliance, if there is no stipulation to the contrary. Damages shall be paid
if the obligor refuses to pay the penalty or is guilty of fraud in the fulfillment of the
obligation.
782
Art. 1222
783
Art. 1212
784
supra
785
Art. 1215
786
Art. 1225
787
Art. 1226
184
Proof of actual damages suffered by the creditor is not necessary in order that the
penalty may be demanded. 788
The judge shall equitably reduce the penalty when the principal obligation has been
partly or irregularly complied with by the debtor. Even if there has been no performance,
the penalty may also be reduced by the courts if it is iniquitous or unconscionable.789
The nullity of the penal clause does not carry with it that of the principal obligation.
The nullity of the principal obligation carries with it that of the penal clause.790
A. Payment
Whoever pays for another may demand from the debtor what he has paid, except
that if he paid without the knowledge or against the will of the debtor, he can recover only
insofar as the payment has been beneficial to the debtor.791
Whoever pays on behalf of the debtor without the knowledge or against the will of
the latter, cannot compel the creditor to subrogate him in his rights, such as those arising
from a mortgage, guaranty, or penalty.792
Payment made by a third person who does not intend to be reimbursed by the
debtor is deemed to be a donation, which requires the debtor's consent. But the payment is
in any case valid as to the creditor who has accepted it793
788
Art. 1228
789
Art. 1229
790
Art. 1230
791
Art. 1236
792
Art. 1237
793
Art. 1238
185
1. Dation in payment
2. Form of payment
The payment of debts in money shall be made in the currency stipulated. If it is not
possible to deliver such currency, then in the currency which is legal tender in the
Philippines.
The delivery of promissory notes payable to order, or bills of exchange or other
mercantile documents shall produce the effect of payment only when they have been
cashed, or when through the fault of the creditor they have been impaired.
In the meantime, the action derived from the original obligation shall be held in
abeyance.795
The value of the currency at the time of the establishment of the obligation shall be
the basis of payment, unless there is an agreement to the contrary.796
4. Application of payment797
He who has various debts of the same kind in favor of one and the same creditor,
may declare at the time of making the payment, to which of them the same must be
applied. Unless the parties so stipulate, or when the application of payment is made by the
party for whose benefit the term has been constituted, application shall not be made as to
debts which are not yet due.
If the debtor accepts from the creditor a receipt in which an application of the
payment is made, the former cannot complain of the same, unless there is a cause for
invalidating the contract.798
If the debt produces interest, payment of the principal shall not be deemed to have
been made until the interests have been covered.799
794
Art. 1245
Dation in payment is governed by the law on sales because it is as if the creditor is now the
vendee,and the debtor becomes now the vendor.
795
Art. 1249
796
Art. 1250
797
the designation of a debt which is being paid by the debtor who has several obligations of the same
kind in favor of the creditor to whom the payment is made (quoting Tolentino.)
798
Art. 1252
799
Art. 1253
186
When the payment cannot be applied, or if application cannot be inferred from
other circumstances, the debt which is most onerous to the debtor, among those due, shall
be deemed to have been satisfied.
If the debts due are of the same nature and burden, the payment shall be applied to
all of them proportionately.800
If the creditor to whom tender of payment has been made refuses without just
cause to accept it, the debtor shall be released from responsibility by the consignation of
the thing or sum due.
Consignation alone shall produce the same effect in the following cases, when:
(1) Creditor is absent or unknown, or does not appear at the place of payment;
In order that the consignation of the thing due may release the obligor, it must first
be announced to the persons interested in the fulfillment of the obligation.802
Consignation shall be made by depositing the things due at the disposal of judicial
authority, before whom the tender of payment shall be proved, in a proper case, and the
announcement of the consignation in other cases.
The consignation having been made, the interested parties shall also be notified
thereof.803
The expenses of consignation, when properly made, shall be charged against the
creditor.804
800
Art. 1254
801
Art.1256
802
Art. 1257
803
Art. 1258
804
Art. 1259
187
Once the consignation has been duly made, the debtor may ask the judge to order
the cancellation of the obligation.
Before the creditor has accepted the consignation, or before a judicial declaration
that the consignation has been properly made, the debtor may withdraw the thing or the
sum deposited, allowing the obligation to remain in force.805
If, the consignation having been made, the creditor should authorize the debtor to
withdraw the same, he shall lose every preference which he may have over the thing. The
co-debtors, guarantors and sureties shall be released.806
When by law or stipulation, the obligor is liable even for fortuitous events, the loss
of the thing does not extinguish the obligation, and he shall be responsible for damages.
The same rule applies when the nature of the obligation requires the assumption of risk. 807
The debtor in obligations to do shall also be released when the prestation becomes
legally or physically impossible without the fault of the obligor.808
805
Art. 1260
806
Art. 1261
807
Art. 1262
808
Art. 1266
809
Art. 1267
188
C. Condonation or Remission of Debt
2. Implied
810
Four (4) requisites:
1. Debt that is existing. You can remit a debt even before it is due.
2. Renunciation must be gratuitous. If renunciation is for a consideration, the mode of
extinguishment may be something else. It may be novation, compromise of dacion en pago.
3. Acceptance by the debtor
4. Capacity of the parties.
Condonation or remission is essentially gratuitous, and requires the acceptance by the obligor. It
may be made expressly or impliedly.
One and the other kind shall be subject to the rules which govern inofficious donations (Art. 1270)
811
The form of donation must be observed. If the condonation involves movables, apply Art. 748. If it
involves immovables, apply Art. 749. But note that the creditor may just refuse to collect (w/o
observing any form.) In this case, the obligation will be extinguished not by virtue of condonation but by
waiver under Art. 6.
812
Art. 1271
813
Art. 1272
814
Art. 1274
189
D. Confusion or Merger of Rights
When the characters of creditor and debtor are merged in the same person.815
E. Compensation
When two persons, in their own right, are creditors and debtors of each other.816
It is necessary that:
(1) Each one of the obligors be bound principally, and that he be at the same time a
principal creditor of the other;
(2) Both debts consist in a sum of money, or if the things due are consumable,
they be of the same kind, and also of the same quality if the latter has been stated;
815
Art. 1275
816
Art. 1278
Compensation shall not be proper when one of the debts arises from a depositum or from the
obligations of a depositary or of a bailee in commodatum.
Neither can compensation be set up against a creditor who has a claim for support due by gratuitous
title, without prejudice to the provisions of par. 2 of Article 301 (Art. 1287)
Neither shall there be compensation if one of the debts consists in civil liability arising from a penal
offense (Art. 1288)
If a person should have against him several debts which are susceptible of compensation, the rules
on the application of payments shall apply to the order of the compensation (Art. 1289)
817
Art. 1279
190
1. Kinds
a. Legal compensation
Compensation takes place by operation of law, even though the debts may be
payable at different places, but there shall be an indemnity for expenses of exchange or
transportation to the place of payment.818
When all the requisites mentioned above are present, compensation takes effect by
operation of law, and extinguishes both debts to the concurrent amount, even though the
creditors and debtors are not aware of the compensation.819
b. Agreement
The parties may agree upon the compensation of debts which are not yet due.820
c. Voluntary821
d. Judicial
If one of the parties to a suit over an obligation has a claim for damages against the
other, the former may set it off by proving his right to said damages and the amount
thereof.822
e. Facultative
When compensation is claimable by only one of the parties but not of the other.823
818
Art. 1286
819
Art. 1290
820
Art. 1282
821
See Agreement, supra
822
Art. 1283
823
e.g., Arts. 1287, 1288
191
2. Obligations not compensable
a. When one of the debts arises from a depositum or from the obligations of a
depositary or of a bailee in commodatum.
b. Against a creditor who has a claim for support due by gratuitous title, without
prejudice to the provisions of paragraph 2 of Article 301.824
c. If one of the debts consists in civil liability arising from a penal offense.825
F. Novation
Novation which consists in substituting a new debtor in the place of the original
one, may be made even without the knowledge or against the will of the latter, but not
without the consent of the creditor. Payment by the new debtor gives him the rights
mentioned in articles 1236 and 1237.828
If the substitution is without the knowledge or against the will of the debtor, the
new debtor's insolvency or non-fulfillment of the obligations shall not give rise to any
liability on the part of the original debtor.829
The insolvency of the new debtor, who has been proposed by the original debtor
and accepted by the creditor, shall not revive the action of the latter against the original
824
Art. 1287
Support in arrears may be compensated and renounced, and the right to demand the same may be
transmitted by onerous or gratuitous title (Art. 301, par. 2)
825
Art. 1288
826
Art. 1291
827
Art. 1292
828
Art. 1293
829
Art. 1294
192
obligor, except when said insolvency was already existing and of public knowledge, or
known to the debtor, when the delegated his debt.830
If the new obligation is void, the original one shall subsist, unless the parties
intended that the former relation should be extinguished in any event.832
The novation is void if the original obligation was void, except when annulment
may be claimed only by the debtor or when ratification validates acts which are voidable.833
(1) When a creditor pays another creditor who is preferred, even without the
debtor's knowledge;
(2) When a third person, not interested in the obligation, pays with the express or
tacit approval of the debtor;
(3) When, even without the knowledge of the debtor, a person interested in the
fulfillment of the obligation pays, without prejudice to the effects of confusion as to the
latter's share.837
830
Art. 1295
831
Art. 1296
832
Art. 1297
833
Art. 1298
834
Art. 1299
835
Art. 1300
836
Art. 1301
837
Art. 1302
193
Subrogation transfers to the persons subrogated the credit with all the rights
thereto appertaining, either against the debtor or against third person, be they guarantors or
possessors of mortgages, subject to stipulation in a conventional subrogation.838
A creditor, to whom partial payment has been made, may exercise his right for the
remainder, and he shall be preferred to the person who has been subrogated in his place in
virtue of the partial payment of the same credit.839
838
Art. 1303
839
Art. 1304
194
CONTRACTS
I. Essential Requisites
1. Donations
Movable Immovable
840
Art. 1381
841
like deposit, pledge and commodatum
842
Art. 748
195
The acceptance may be made in the same deed of donation or in a separate public
document, but it shall not take effect unless it is done during the lifetime of the donor.
If the acceptance is made in a separate instrument, the donor shall be notified thereof in an
authentic form, and this step shall be noted in both instruments.843
3. Antichresis
The amount of the principal and of the interest shall be specified in writing;
otherwise, the contract of antichresis is void.847
The authority of the agent must be in writing; otherwise, the sale is void.848
843
Art. 749
844
may be constituted in any form
845
Art. 1771
846
Art. 1773; otherwise, the contract of partnership is void
847
Art. 2134
848
Art. 1874
849
Art. 1956
196
6. Stipulation limiting common carriers duty of extraordinary
diligence to ordinary diligence
A stipulation between the common carrier and the shipper or owner limiting the
liability of the former for the loss, destruction, or deterioration of the goods to a degree
less than extraordinary diligence shall be valid, provided it be:
7. Chattel mortgage
Personal property is recorded in the Chattel Mortgage Register as security for the
performance of an obligation.
Governed by special law852 which requires that the same be in a public instrument.
850
Art. 1744
851
Art. 2140
852
Act No. 1147
853
Sec. 5, P.D. 533
197
III. Formality
Contracts shall be obligatory, in whatever form they may have been entered into,
provided all the essential requisites for their validity are present. However, when the law
requires that a contract be in some form in order that it may be valid or enforceable, or
that a contract be proved in a certain way, that requirement is absolute and indispensable.
In such cases, the right of the parties stated in the following article cannot be exercised.854
If the law requires a document or other special form, the contracting parties may
compel each other to observe that form, once the contract has been perfected. This right
may be exercised simultaneously with the action upon the contract.855
(1) Acts and contracts which have for their object the creation, transmission,
modification or extinguishment of real rights over immovable property; sales of real
property or of an interest therein are governed by Articles 1403, No. 2, and 1405;856
(3) The power to administer property, or any other power which has for its object
an act appearing or which should appear in a public document, or should prejudice a third
person;
(4) 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
(P500.00) 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 1405.857
854
Art. 1356
855
Art. 1357
856
infra
857
Art. 1358
198
IV. Defective Contracts
A. Rescissible Contracts858
(1) Those which are entered into by guardians whenever the wards whom they
represent suffer lesion by more than one-fourth of the value of the things which are the
object thereof;
(2) Those agreed upon in representation of absentees, if the latter suffer the lesion
stated in the preceding number;
(3) Those undertaken in fraud of creditors when the latter cannot in any other
manner collect the claims due them;
(4) Those which refer to things under litigation if they have been entered into by
the defendant without the knowledge and approval of the litigants or of competent judicial
authority;
(5) All other contracts specially declared by law to be subject to rescission. 859
858
Contracts validly agreed upon but, by reason of lesion or economic prejudice may be rescinded in
cases established by law.
859
Art. 1381
199
Only a party to the contract may demand Even a 3rd person who is prejudiced by the
fulfillment or seek the rescission of the contract may demand the rescission of the
contract. contract.
B. Voidable Contracts860
Contracts entered into during a lucid interval are valid. Contracts agreed to in a
state of drunkenness or during a hypnotic spell are voidable.861
In order that mistake may invalidate consent, it should refer to the substance of the
thing which is the object of the contract, or to those conditions which have principally
moved one or both parties to enter into the contract.
Mistake as to the identity or qualifications of one of the parties will vitiate consent
only when such identity or qualifications have been the principal cause of the contract.
860
Art. 1409
Those in which all of the essential elements for validity are present, although the element of consent
is vitiated either by lack of capacity of one of the contracting parties or by VIMFU.
What contracts are voidable:
1. Those where one of the parties is incapable of giving consent to a contract
2. Those where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud
3. By loss of the thing which is the object of the contract through fraud or fault of the person who is
entitled to annul the contract.
Requisites:
a. there must be knowledge of the reason which renders the contract voidable
b. such reason must have ceased and
c. the injured party must have executed an act which expressly or impliedly conveys an intention to
waive his right.
861
Art. 1328
862
See Reference
863
Art. 1329
864
Art. 1330
865
Art. 1331
200
When one of the parties is unable to read, or if the contract is in a language not
understood by him, and mistake or fraud is alleged, the person enforcing the contract must
show that the terms thereof have been fully explained to the former.866
There is no mistake if the party alleging it knew the doubt, contingency or risk
affecting the object of the contract.867
Mutual error as to the legal effect of an agreement when the real purpose of the
parties is frustrated, may vitiate consent.868
To determine the degree of intimidation, the age, sex and condition of the person
shall be borne in mind.
A threat to enforce one's claim through competent authority, if the claim is just or
legal, does not vitiate consent.869
Violence or intimidation shall annul the obligation, although it may have been
employed by a third person who did not take part in the contract.870
There is undue influence when a person takes improper advantage of his power
over the will of another, depriving the latter of a reasonable freedom of choice. The
following circumstances shall be considered: the confidential, family, spiritual and other
relations between the parties, or the fact that the person alleged to have been unduly
influenced was suffering from mental weakness, or was ignorant or in financial distress.871
866
Art. 1332
867
Art. 1333
868
Art. 1334
869
Art. 1335
870
Art. 1336
871
Art. 1337
872
Art. 1338
201
Failure to disclose facts, when there is a duty to reveal them, as when the parties are
bound by confidential relations, constitutes fraud.873
The usual exaggerations in trade, when the other party had an opportunity to know
the facts, are not in themselves fraudulent.874
A mere expression of an opinion does not signify fraud, unless made by an expert
and the other party has relied on the former's special knowledge.875
Misrepresentation made in good faith is not fraudulent but may constitute error.877
In order that fraud may make a contract voidable, it should be serious and should
not have been employed by both contracting parties.
The following contracts are voidable or annullable, even though there may have
been no damage to the contracting parties:
(1) Those where one of the parties is incapable of giving consent to a contract;
(2) Those where the consent is vitiated by mistake, violence, intimidation, undue
influence or fraud.
These contracts are binding, unless they are annulled by a proper action in court.
They are susceptible of ratification.879
The action for annulment shall be brought within four (4) years.
In cases of intimidation, violence or undue influence, from the time the defect of
the consent ceases.
873
Art. 1339
874
Art. 1340
875
Art. 1341
876
Art. 1342
877
Art. 1343
878
Art. 1344
879
Art. 1390
202
In case of mistake or fraud, from the time of the discovery of the same.
And when the action refers to contracts entered into by minors or other
incapacitated persons, from the time the guardianship ceases.880
Ratification does not require the conformity of the contracting party who has no
right to bring the action for annulment.884
Ratification cleanses the contract from all its defects from the moment it was
constituted.885
The action for the annulment of contracts may be instituted by all who are thereby
obliged principally or subsidiarily. However, persons who are capable cannot allege the
incapacity of those with whom they contracted; nor can those who exerted intimidation,
violence, or undue influence, or employed fraud, or caused mistake base their action upon
these flaws of the contract.886
An obligation having been annulled, the contracting parties shall restore to each
other the things which have been the subject matter of the contract, with their fruits, and
the price with its interest, except in cases provided by law.
In obligations to render service, the value thereof shall be the basis for damages.887
When the defect of the contract consists in the incapacity of one of the parties, the
incapacitated person is not obliged to make any restitution except insofar as he has been
benefited by the thing or price received by him.888
880
Art. 1391
881
Art. 1392
882
Art. 1393
883
Art. 1394
884
Art. 1395
885
Art. 1396
886
Art. 1397
887
Art. 1398
888
Art. 1399
203
Whenever the person obliged by the decree of annulment to return the thing
cannot do so because it has been lost through his fault, he shall return the fruits received
and the value of the thing at the time of the loss, with interest from the same date.889
The action for annulment of contracts shall be extinguished when the thing which
is the object thereof is lost through the fraud or fault of the person who has a right to
institute the proceedings.
If the right of action is based upon the incapacity of any one of the contracting
parties, the loss of the thing shall not be an obstacle to the success of the action, unless said
loss took place through the fraud or fault of the plaintiff.890
As long as one of the contracting parties does not restore what in virtue of the
decree of annulment he is bound to return, the other cannot be compelled to comply with
what is incumbent upon him.891
889
Art. 1400
890
Art. 1401
891
Art. 1402
204
C. Unenforceable Contracts892
892
Those which cannot be enforced by proper action in court unless they are ratified
What contracts are unenforceable
1. those entered into in the name of another by one without or acting in excess of authority;
2. those where both parties are incapable of giving consent; and
3. those which do not comply with the Statute of Frauds
Agreements within the scope of the Statute of Frauds (exclusive list):
1. Agreements not to be performed within one year from the making thereof;
2. Special promise to answer for the debt, default or miscarriage of another;
- this does not refer to the original or independent promise of the debtor to his own creditor. It
refers rather to a collateral promise.
3. Agreement in consideration of marriage other than a mutual promise to marry;
4. Agreement for the sale of goods, etc. at a price not less than P500.00;
5. Contracts of lease for a period longer than one year;
6. Agreements for the sale of real property or interest therein; and
7. Representation as to the credit of a third person.
The contracts/agreements under the Statute of Frauds require that the same be evidenced by some
note, memorandum or writing, subscribed by the party charged or by his agent, otherwise, the said
contracts shall be unenforceable.
The statute of frauds applies only to executory contracts, not to those that are partially or
completely fulfilled.
Ratification of contracts in violation of the Statute of Frauds
1. Failure to object to the presentation of oral evidence to prove such contracts
2. Acceptance of benefits under these contracts
205
(d) An agreement for the sale of goods, chattels or things in action, at a
price not less than five hundred pesos (P500.00), unless the buyer accept and
receive part of such goods and chattels, or the evidences, or some of them, of such
things in action or pay at the time some part of the purchase money; but when a
sale is made by auction and entry is made by the auctioneer in his sales book, at the
time of the sale, of the amount and kind of property sold, terms of sale, price,
names of the purchasers and person on whose account the sale is made, it is a
sufficient memorandum;
(e) An agreement for the leasing for a longer period than one (1) year, or
for the sale of real property or of an interest therein;
(3) Those where both parties are incapable of giving consent to a contract.893
Unauthorized contracts are governed by Article 1317894 and the principles of
agency.895
Contracts infringing the Statute of Frauds, referred to in No. 2 of Article 1403, are
ratified by the failure to object to the presentation of oral evidence to prove the same, or
by the acceptance of benefit under them.896
When a contract is enforceable under the Statute of Frauds, and a public document
is necessary for its registration in the Registry of Deeds, the parties may avail themselves of
the right under Article 1357.897
In a contract where both parties are incapable of giving consent, express or
implied, ratification by the parent, or guardian, as the case may be, of one of the
contracting parties shall give the contract the same effect as if only one of them were
incapacitated.
If ratification is made by the parents or guardians, as the case may be, of both
contracting parties, the contract shall be validated from the inception.
893
Art. 1403
894
No one may contract in the name of another without being authorized by the latter, or unless he has
by law a right to represent him.
A contract entered into in the name of another by one who has no authority or legal representation,
or who has acted beyond his powers, shall be unenforceable, unless it is ratified, expressly or impliedly,
by the person on whose behalf it has been executed, before it is revoked by the other contracting party
895
Art. 1404
896
Art. 1405
897
Art. 1406
If the law requires a document or other special form, the contracting parties may compel each other
to observe that form, once the contract has been perfected. This right may be exercised simultaneously
with the action upon the contract (Art. 1357)
206
No one may contract in the name of another without being authorized by the
latter, or unless he has by law a right to represent him.
A contract entered into in the name of another by one who has no authority or
legal representation, or who has acted beyond his powers, shall be unenforceable, unless it
is ratified, expressly or impliedly, by the person on whose behalf it has been executed,
before it is revoked by the other contracting party.898
D. Void Contracts899
(1) Those whose cause, object or purpose is contrary to law, morals, good customs,
public order or public policy;
(3) Those whose cause or object did not exist at the time of the transaction;
(6) Those where the intention of the parties relative to the principal object of the
contract cannot be ascertained;
These contracts cannot be ratified. Neither can the right to set up the defense of
illegality be waived.900
898
Art. 1407
899
Those where all of the requisites of a contract are present but the cause, object or purpose is
contrary to law, morals, good customs, public order or public policy, or contract itself is prohibited or
declared void by law.
900
Art. 1409
901
Art. 1346
207
Comparative table of defective contracts
902
supra
208
but even by a person who is
third person prejudiced or
whose interest is damaged by the
directly affected contract
1. Pactum commissorium
It can be found in Article 2088 of the civil code which provides: The creditor
cannot appropriate the things given by way of pledge or mortgage, or dispose of them. Any
stipulation to the contrary is null and void.
3. Pactum leonina
A stipulation which excludes one or more partners from any share in the profits or
losses.904
903
Art. 2130
904
Art. 1799
209
V. Effect of Contracts
Contracts take effect only between the parties, their assigns and heirs, except in
case where the rights and obligations arising from the contract are not transmissible by
their nature, or by stipulation or by provision of law. The heir is not liable beyond the value
of the property he received from the decedent.
905
Art. 1311
210
SALES906
I. Introduction
A. Definition of Sales
By the contract of sale one of the contracting parties obligates himself to transfer the
ownership and to deliver a determinate thing, and the other to pay therefor a price certain in
money or its equivalent.
Gross inadequacy of price does not affect a contract of sale, except as it may indicate
a defect in the consent, or that the parties really intended a donation or some other act or
contract.908
Subject to the provisions of this Title, where goods are sold by a person who is not
the owner thereof, and who does not sell them under authority or with the consent of the
owner, the buyer acquires no better title to the goods than the seller had, unless the owner of
the goods is by his conduct precluded from denying the seller's authority to sell.
(1) The provisions of any factors' act, recording laws, or any other provision of law
enabling the apparent owner of goods to dispose of them as if he were the true owner
thereof;
(2) The validity of any contract of sale under statutory power of sale or under the
order of a court of competent jurisdiction;
211
C. Stages of Contract of Sale
1. Negotiation
3. Consummation
D. Obligations Created
909
Art. 1505
910
specific performance
911
Those who in the performance of their obligations are guilty of fraud, negligence, or delay, and those
who in any manner contravene the tenor thereof, are liable for damages.
912
Art. 1165
913
obligation of seller transfer ownership & deliver
obligation of buyer pay price
Consequence: power to rescind is implied in bilateral contracts
914
Test: subjective as long as parties believe in all honesty that he is receiving equal value then it
complies with the test & would not be deemed a donation; but must not be absurd.
Inadequacy of price or aleatory character not sufficient ground to cancel contract of sale;
Inadequacy can show vitiation of consent & sale may be annulled based on vice but not on
inadequacy
212
F. Sale is Title and Not Mode
The contract of sale by itself is not a mode of acquiring ownership. The contact
transfers no real rights; it merely causes certain obligations to arise.
Donation Sale
Gratuitous Onerous
Barter915 Sale
Both are governed by law on sales; both are species of the genus sales
Value of thing is more than amount Value of thing is equal or less than
of money amount of money
915
The only point difference between contract of sale and barter is in the element which is present in sale
but not in barter, namely: price certain in money or its equivalent
916
Art. 1468
213
Contract for piece of work917 Sale
The thing transferred is one not in The thing transferred is one which
existence and which never would would have existed and would have
have existed but for the order of the been the subject of sale to some
party desiring to acquire it other person, even if the order had
not been given
Agent not obliged to pay for price, Buyer pays for price of object
merely obliged to deliver price
received from buyer.
214
May be revoked unilaterally because Not unilaterally revocable
fiduciary & even if revoked w/o
ground
Agent receives the goods as goods Buyer receives the goods as owner
of the principal who retains his
ownership over them
Agent can return the goods in case Buyer, as a general rule, cannot
he is unable to sell the same to a return the object sold
third person
Agent makes no warranty for which Seller warrants the thing sold
he assumes personal liability as long
as he acts within his authority and
in the name of the seller
Agent in dealing with the thing Buyer can deal with the thing sold as
received, must act and is bound he pleases being the owner
according to the instructions of the
principal
919
to give
215
Lease Sale
Lease with option to buy: really a contract of sale but designated as lease in
name only; it is a sale by installments
The payment is received by the Buyer still has to pay the price
debtor before the contract is
perfected.
920
A contract where property is alienated to satisfy/extinguish obligation to pay debt
Novates creditor-debtor relationship into seller-buyer
Delivery is required (real contract)
216
H. Contract of Sale/Contract to Sell
Vendor loses and cannot recover Title remains in the vendor if the
ownership of the thing sold and vendee does not comply with the
delivered until the contract of sale is condition precedent of making
resolved and set aside payment at the time specified in the
contract
921
Absent a proviso in the contract that the title to the property is reserved in the vendor until full
payment of the purchase price or a stipulation giving the vendor the right to unilaterally rescind the
contract the moment the vendee fails to pay within the fixed period, the transaction is an absolute
contract of sale and not a contract to sell. (Dignos vs. CA [1988])
217
II. Parties to a Contract of Sale
A. Capacity of parties
All persons who are authorized by law to obligate themselves, may enter into a
contract of sale, with modifications.
Where necessaries922 are those sold and delivered to a minor or other person without
capacity to act, he must pay a reasonable price therefor. 923
(1) The guardian, the property of the person or persons who may be under his
guardianship;
(2) Agents, the property whose administration or sale may have been intrusted to
them, unless the consent of the principal has been given;
(3) Executors and administrators, the property of the estate under administration;
(4) Public officers and employees, the property of the State or of any subdivision
thereof, or of any government-owned or controlled corporation, or institution, the
administration of which has been intrusted to them; this provision shall apply to judges and
government experts who, in any manner whatsoever, take part in the sale;
(5) Justices, judges, prosecuting attorneys, clerks of superior and inferior courts, and
other officers and employees connected with the administration of justice, the property and
rights in litigation or levied upon an execution before the court within whose jurisdiction or
territory they exercise their respective functions; this prohibition includes the act of acquiring
by assignment and shall apply to lawyers, with respect to the property and rights which may
be the object of any litigation in which they may take part by virtue of their profession;
The prohibitions in the two preceding articles are applicable to sales in legal
redemption, compromises and renunciations.924
922
Refers to Art. 290 which provides: Support is everything that is indispensable for sustenance, dwelling,
clothing and medical attendance, according to the social position of the family.
Support also includes the education of the person entitled to be supported until he completes his
education or training for some profession, trade or vocation, even beyond the age of majority.
923
Art. 1489
924
Art. 1491
218
B. Absolute incapacity
When the defect of the contract consists in the incapacity of one of the parties, the
incapacitated person is not obliged to make any restitution except insofar as he has been
benefited by the thing or price received by him.927
The husband and the wife cannot sell property to each other, except:
(1) When separation of property was agreed upon in the marriage settlements: or
(2) When there has been a judicial separation of property between the spouses.928
D. Special disqualifications
925
Art. 1327
926
Art. 1397
927
Art. 1399
928
Art. 1490
929
Art. 1492
219
III. Subject Matter
The thing must be licit and the vendor must have a right to transfer the ownership
thereof at the time it is delivered.930
The requisite that a thing be determinate is satisfied if at the time the contract is
entered into, the thing is capable of being made determinate without the necessity of a new
or further agreement between the parties.931
Things having a potential existence may be the object of the contract of sale.
The efficacy of the sale of a mere hope or expectancy is deemed subject to the
condition that the thing will come into existence.
The goods which form the subject of a contract of sale may be either existing goods,
owned or possessed by the seller, or goods to be manufactured, raised, or acquired by the
seller after the perfection of the contract of sale, in this Title called "future goods."
There may be a contract of sale of goods, whose acquisition by the seller depends
upon a contingency which may or may not happen.933
In the case of fungible goods, there may be a sale of an undivided share of a specific
mass, though the seller purports to sell and the buyer to buy a definite number, weight or
measure of the goods in the mass, and though the number, weight or measure of the goods
in the mass, and though the number, weight or measure of the goods in the mass is
undetermined. By such a sale the buyer becomes owner in common of such a share of the
mass as the number, weight or measure bought bears to the number, weight or measure of
the mass. If the mass contains less than the number, weight or measure bought, the buyer
becomes the owner of the whole mass and the seller is bound to make good the deficiency
from goods of the same kind and quality, unless a contrary intent appears.935
930
Art. 1459
931
Art. 1460
932
Art. 1461
933
Art. 1462
934
Art. 1463
935
Art. 1464
220
Things subject to a resolutory condition may be the object of the contract of sale.936
B. Particular kinds
1. Generic things937
2. Future Goods938
3. Sale of undivided interest or share939
4. Sale of things in litigation940
5. Things subject to a resolutory condition941
The goods which form the subject of a contract of sale may be either existing goods,
owned or possessed by the seller, or goods to be manufactured, raised, or acquired by the
seller after the perfection of the contract of sale, called "future goods."
There may be a contract of sale of goods, whose acquisition by the seller depends
upon a contingency which may or may not happen.942
Where goods are sold by a person who is not the owner thereof, and who does not
sell them under authority or with the consent of the owner, the buyer acquires no better title
to the goods than the seller had, unless the owner of the goods is by his conduct precluded
from denying the seller's authority to sell.943
The thing must be licit and the vendor must have a right to transfer the ownership
thereof at the time it is delivered.944
936
Art. 1465
937
see Arts. 1246 & 1409
938
Art. 1462
939
Arts. 1463 & 1464
940
Arts. 1381 & 1385
941
Art. 1465
942
Art. 1462
943
Art. 1505
944
Art. 1459
221
1. Exceptions
(1) The provisions of any factors' act, recording laws, or any other provision of law
enabling the apparent owner of goods to dispose of them as if he were the true owner
thereof;
(2) The validity of any contract of sale under statutory power of sale or under the
order of a court of competent jurisdiction;
Where the seller of goods has a voidable title thereto, but his title has not been
avoided at the time of the sale, the buyer acquires a good title to the goods, provided he buys
them in good faith, for value, and without notice of the seller's defect of title.946
If the possessor of a movable lost or which the owner has been unlawfully deprived,
has acquired it in good faith at a public sale, the owner cannot obtain its return without
reimbursing the price paid therefor.947
V. Price948
A. Meaning of price
The sum stipulated as the equivalent of the thing sold and also every incident taken
into consideration for the fixing of the price, put to the debit of the vendee and agreed to by
him.
In order that the price may be considered certain, it shall be sufficient that it be so
with reference to another thing certain, or that the determination thereof be left to the
judgment of a special person or persons.
Should such person or persons be unable or unwilling to fix it, the contract shall be
inefficacious, unless the parties subsequently agree upon the price.
945
Art. 1505
946
Art. 1506
947
Art. 559
948
The sum stipulated as the equivalent of the thing sold and also every incident taken into consideration
for the fixing of the price, put to the debit of the vendee and agreed to by him.
222
If the third person or persons acted in bad faith or by mistake, the courts may fix the
price.
Where such third person or persons are prevented from fixing the price or terms by
fault of the seller or the buyer, the party not in fault may have such remedies against the
party in fault as are allowed the seller or the buyer, as the case may be.949
Gross inadequacy of price does not affect a contract of sale, except as it may indicate
a defect in the consent, or that the parties really intended a donation or some other act or
contract.950
If the price is simulated, the sale is void, but the act may be shown to have been in
reality a donation, or some other act or contract.951
The price of securities, grain, liquids, and other things shall also be considered
certain, when the price fixed is that which the thing sold would have on a definite day, or in
a particular exchange or market, or when an amount is fixed above or below the price on
such day, or in such exchange or market, provided said amount be certain.952
The fixing of the price can never be left to the discretion of one of the contracting
parties. However, if the price fixed by one of the parties is accepted by the other, the sale is
perfected.953
Where the price cannot be determined, or in any other manner, the contract is
inefficacious. However, if the thing or any part thereof has been delivered to and
appropriated by the buyer he must pay a reasonable price therefor. What is a reasonable
price is a question of fact dependent on the circumstances of each particular case.954
949
Art. 1469
950
Art. 1470
951
Art. 1471
952
Art. 1472
953
Art. 1473
954
Art. 1474
223
B. Requisites for a valid price
1. Must be real955
2. Must be in money or its equivalent
3. Must be certain or ascertainable956 at the time of the perfection of the contract
4. Manner of payment provided for
It is not necessary that the certainty of the price be actual or determined at the time
of the execution of the contract.
955
Real
1. When price stated is one intended by parties
If fictitious: no intention with respect to price - VOID
If False/simulated: what appears in contract is not the true price
a. Valid if there is true consideration
b. Void but if none (because it is fictitious)
2. Valuable
When not valuable Void
When contract is onerous, presumed to have valuable consideration
Nominal consideration w/c is common law concept does not apply (P1.00)
956
1.Sufficient that it is fixed with reference to another thing certain
That thing will have on a definite day, or in a particular exchange or market, or when an amount is
fixed above or below the price on such day, or in such exchange or market provided said amount be
certain
2. Determination be left to judgment of specified person/s
If contract states that price is to be determined by 3rd party, contract is already perfected (there is
just a suspensive condition actual fixing of price)
3rd party fixes price in bad faith or mistake court remedy can be made
3rd party is unable or unwilling to fix price parties have no cause of action
Reason:
a. suspensive condition does not happen yet courts have no jurisdiction
b. enforceable contract have not yet arisen court with no jurisdiction to create contract between
parties
Result: inefficacious
When price cannot be determined in accordance with any of the preceding rules, contract of sale is
inefficacious
However, when SM delivered, buyer must pay reasonable rice therefore court can fix price
957
Effect of Failure to determine price:
1. Where contract executory
The contract is inefficacious
2. Where the thing has been delivered to and appropriated by the buyer
The buyer must pay a reasonable price therefore
224
The price is certain in the following cases:
D. Inadequacy of price
Lesion or inadequacy of cause does not invalidate a contract, unless there has been
fraud, mistake or undue influence.960
Gross inadequacy of price does not affect a contract of sale, except as it may indicate
a defect in the consent, or that the parties really intended a donation or some other act or
contract.961
The contract is inefficacious. However, if the thing or any part thereof has been
delivered to and appropriated by the buyer, he must pay a reasonable price therefor. What is
a reasonable price is a question of fact dependent on the circumstances of each particular
case.962
958
The fixing of the price can never be left to the discretion of one of the contracting parties. However if
the price fixed by one of the parties is accepted by the other, the sale is perfected.
959
The price of securities, grain, liquids, and other things shall also be considered certain, when the price
fixed is that which the thing sold would have on a definite day, or in a particular exchange or market, or
when an amount is fixed above or below the price on such day, or in such exchange or market, provided
said amount be certain.
960
Art. 1355
961
Art. 1470
Gross inadequacy of price in ordinary sale does not render contract void unless it is shocking to
conscience of man.
Except:
a. Judicial sale
Shocking to conscience of man
Higher price can be obtained at re-sale
b. Rescissible contracts due to lesion
c. Sales with right to repurchase (raises presumption of equitable mortgage) Remedy is
reformation
962
Art. 1474
225
F. Manner of payment must be agreed upon
Title passes to the buyer upon delivery of the Ownership is reserved to the seller and is not
thing sold to pass until full payment
When given, the buyer is bound to pay the The would-be buyer is not required to buy
balance
Given when there is already a sale Applies to a sale not yet perfected
963
Integral part of concept of price
If there is failure to meet minds as regards term of payment: cash basis
Must be certain or at least ascertainable
Effect if absent: no contract situation
964
or Arras is something of value to show that the buyer was really in earnest, and given to the seller to
bind the bargain. It is considered as:
a) part of the purchase price
b) proof of perfection of the contract
965
Art. 1482
226
VI. Formation of Contract of Sale966
A. Preparatory
1. Offer
The contract of sale is perfected at the moment there is a meeting of minds upon the
thing which is the object of the contract and upon the price.
From that moment, the parties may reciprocally demand performance, subject to the
provisions of the law governing the form of contracts.967
2. Option Contract968
A promise to buy and sell a determinate thing for a price certain is reciprocally
demandable.
When the offerer has allowed the offeree a certain period to accept, the offer may be
withdrawn at any time before acceptance by communicating such withdrawal, except when
the option is founded upon a consideration, as something paid or promised.970
966
3 Stages in life of a contract of sale
1. Policitacion/negotiation Stage offer is floated, acceptance is floated but they do not meet; time
parties indicate their interest but no concurrence of offer & acceptance
2. Perfection concurrence of all requisites; meeting of the minds
3. Consummation parties perform their respective undertakings
967
Art. 1475
968
A contract granting a privilege in one person, for which he has paid a consideration, which gives him
the right to buy certain merchandise, at anytime within the agreed period, at a fixed price.
An option without consideration is void and the effect is the same as if there was no option
However, in Sanchez vs. Rigos (1972), even though the option was not supported by a consideration,
the moment it was accepted, a perfected contract of sale resulted, applying Art. 1324 of the NCC. In view
of the ruling of the Supreme Court, the only importance of the consideration for an option is that the
option cannot be withdrawn by the grantor after acceptance.
In an option to buy, the party who has an option may validly and effectively exercise his right by
merely notifying the owner of the formers decision to buy and expressing his readiness to pay the
stipulated price.
969
Art. 1479
970
Art. 1324
227
3. Right of First Refusal
It is a right of first priority all things and conditions being equal; there should be
identity of the terms and conditions to be offered to the optionee and all other prospective
buyers, with optionee to enjoy the right of first priority. A deed of sale executed in favor of
a third party who cannot be deemed a purchaser in good faith, and which is in violation of
the right of first refusal granted to the optionee is not voidable under the Statute of Frauds,
such contract is valid but rescissible.971
The basis of the right of first refusal must be the current offer to sell of the seller or
offer to purchase of any prospective buyer. Only after the optionee fails to exercise its right
of first priority under the same terms and within the period contemplated could the owner
validly offer to sell the property to a third person, again, under the same terms as offered to
the optionee.972
Principal contract; stands on its own Accessory; cannot stand on its own
Subject matter & price must be valid There must be subject matter but price not
important
One party accepts the others promise to buy and the latter, the formers promise to
sell a determinate thing for a price certain
It is reciprocally demandable
971
Guzman Bocaling & Co. vs. Bonnavie; Riviera Filipina, Inc vs. CA, et.al. GR No. 117355, April 5, 2002
972
Paranaque Kings Enterprises, Inc. vs. CA, GR No. 111538, February 26, 1997
973
This is as good as a perfected sale. No title of dominion is transferred as yet, the parties being given
only the right to demand fulfillment or damages
228
B. Perfection974
Consent is manifested by the meeting of the offer and the acceptance upon the thing
and the cause which are to constitute the contract. The offer must be certain and the
acceptance absolute. A qualified acceptance constitutes a counter-offer.975
Acceptance made by letter or telegram does not bind the offerer except from the
time it came to his knowledge. The contract, in such a case, is presumed to have been
entered into in the place where the offer was made.976
Unless it appears otherwise, business advertisements of things for sale are not
definite offers, but mere invitations to make an offer.977
Advertisements for bidders are simply invitations to make proposals, and the
advertiser is not bound to accept the highest or lowest bidder, unless the contrary appears.978
974
Sale is a consensual contract, hence, delivery and payment are not essential for its perfection
General rule: It is perfected at the moment there is meeting of the minds upon a determinate thing
(object), and a certain price (consideration), even if neither is delivered. A choice between rescission and
fulfilment, with damages in either case)
Exception: When the sale is subject to a suspensive condition by virtue of law or stipulation.
The terms and conditions of payment are merely accidental, not essential elements of the contract of
sale except where the parties themselves stipulate that in addition to the subject-matter and the price,
they are essential or material to the contract.
975
Meeting of Minds:
1. Offer certain
2. Acceptance absolute
Qualified acceptance merely a counter-offer which needs to be absolutely accepted to give rise to
perfected contract of sale
Business ads are mere invitations to make an offer except when it appears to be otherwise
Acceptance by letter/telegram binds only at time it came to knowledge of SELLER; prior thereto
offer may still be withdrawn
Must be exact terms to be considered absolute
When deviations allowed:
a. anything that refers to price is material
b. small items are insignificant, does not make acceptable unconditional
When sale is subject to suspensive condition, no perfected contract of sale yet; becomes perfected
only upon happening of condition
In sales at auction, perfected when auctioneer announces its perfection by the fall of the hammer or in
other customary manner may impose terms under bidder may retract his bid; owner of property sold at
auction may impose terms under w/c the auction will proceed & it shall be binding w/n the bidders are
aware
Place of perfection: where the meeting of minds happen; when acceptance sent by mail, perfection is
deemed where the offer is made
Performance has nothing to do with perfection stage
976
Art. 1319
977
Art. 1325
978
Art. 1326
229
The contract of sale is perfected at the moment there is a meeting of minds upon the
thing which is the object of the contract and upon the price.
From that moment, the parties may reciprocally demand performance, subject to the
provisions of the law governing the form of contracts.979
Exceptions:
A. Manner of Transfer
The ownership of the thing sold shall be transferred to the vendee upon the actual or
constructive delivery thereof.981
The ownership of the thing sold is acquired by the vendee from the moment it is
delivered to him in any of the ways specified in Articles 1497 to 1501, 982 or in any other
manner signifying an agreement that the possession is transferred from the vendor to the
vendee.983
The thing sold shall be understood as delivered, when it is placed in the control and
possession of the vendee.984
When the sale is made through a public instrument, the execution thereof shall be
equivalent to the delivery of the thing which is the object of the contract, if from the deed
the contrary does not appear or cannot clearly be inferred.
979
Art. 1475
980
Art. 1403 (d) (e)
981
Art. 1477
982
See Reference
983
Art. 1496
984
Art. 1497
230
With regard to movable property, its delivery may also be made by the delivery of the
keys of the place or depository where it is stored or kept.985
The delivery of movable property may likewise be made by the mere consent or
agreement of the contracting parties, if the thing sold cannot be transferred to the
possession of the vendee at the time of the sale, or if the latter already had it in his
possession for any other reason.986
With respect to incorporeal property, the provisions of the first paragraph of article
1498 shall govern. In any other case wherein said provisions are not applicable, the placing
of the titles of ownership in the possession of the vendee or the use by the vendee of his
rights, with the vendor's consent, shall be understood as a delivery.988
C. Kinds of delivery
985
Art. 1498
986
Art. 1499
987
Art. 1500
988
Art. 1501
989
Art. 1503
990
Three things before ownership may be transferred:
1. The seller must have control over the thing
2. The buyer must be put under control
3. There must be the intention to deliver the thing for purposes of ownership
231
b. allowing buyer to
a. traditio symbolica - to make use of rights
effect delivery, the
parties make use of a
token or symbol to
represent the thing
delivered
d. traditio constitutum
possessorium seller
continues in
possession but under
a different title other
than ownership.
991
Gives rise only to a prima facie presumption of delivery which is destroyed when actual delivery is not
effected because of a legal impediment (Ten Forty Realty vs. Cruz, 10 Sept. 2003)
232
D. Double Sales992
Rules of preference:
1. Personal Property
2. Real Property
(a) The Register of Deeds for each province or city shall keep a Primary Entry Book
and a Registration Book. The Primary Entry Book shall contain, among other particulars, the
entry number, the names of the parties, the nature of the document, the date, hour and
minute it was presented and received. The recording of the deed and other instruments
relating to unregistered lands shall be effected by any of annotation on the space provided
therefor in the Registration Book, after the same shall have been entered in the Primary
Entry Book.
(b) If, on the face of the instrument, it appears that it is sufficient in law, the Register
of Deeds shall forthwith record the instrument in the manner provided herein. In case the
Register of Deeds refuses its administration to record, said official shall advise the party in
interest in writing of the ground or grounds for his refusal, and the latter may appeal the
matter to the Commissioner of Land Registration in accordance with the provisions of
992
Requisites:
1. two or more transactions must constitute valid sales;
2. they must pertain exactly to the same object or subject matter;
3. they must be bought from the same or immediate seller; AND
4. two or more buyers who are at odds over the rightful ownership of the subject matter must
represent conflicting interests.
993
Art. 1544
To be entitled to priority, the second buyer must not only show prior recording of his deed but must
have acted in good faith, without knowledge of the existence of another alienation by the vendor to
another
233
Section 117 of this Decree. It shall be understood that any recording made under this section
shall be without prejudice to a third party with a better right.
(c) After recording on the Record Book, the Register of Deeds shall endorse among
other things, upon the original of the recorded instruments, the file number and the date as
well as the hour and minute when the document was received for recording as shown in the
Primary Entry Book, returning to the registrant or person in interest the duplicate of the
instrument, with appropriate annotation, certifying that he has recorded the instrument after
reserving one copy thereof to be furnished the provincial or city assessor as required by
existing law.
(d) Tax sale, attachment and levy, notice of lis pendens, adverse claim and other
instruments in the nature of involuntary dealings with respect to unregistered lands, if made
in the form sufficient in law, shall likewise be admissible to record under this section.994
For the services to be rendered by the Register of Deeds, he shall collect the same
amount of fees prescribed for similar services for the registration of deeds or instruments
concerning registered lands.995
A. General rule
(1) If the thing is lost without the fault of the debtor, the obligation shall be
extinguished;
(2) If the thing is lost through the fault of the debtor, he shall be obliged to pay
damages; it is understood that the thing is lost when it perishes, or goes out of commerce, or
disappears in such a way that its existence is unknown or it cannot be recovered;
(3) When the thing deteriorates without the fault of the debtor, the impairment is to
be borne by the creditor;
(4) If it deteriorates through the fault of the debtor, the creditor may choose between
the rescission of the obligation and its fulfillment, with indemnity for damages in either case;
994
Sec. 113, P.D. 1529
995
ibid
234
(5) If the thing is improved by its nature, or by time, the improvement shall inure to
the benefit of the creditor;
(6) If it is improved at the expense of the debtor, he shall have no other right than
that granted to the usufructuary.996
If at the time the contract of sale is perfected, the thing which is the object of the
contract has been entirely lost, the contract shall be without any effect.
But if the thing should have been lost in part only, the vendee may choose between
withdrawing from the contract and demanding the remaining part, paying its price in
proportion to the total sum agreed upon.999
Where the parties purport a sale of specific goods, and the goods without the
knowledge of the seller have perished in part or have wholly or in a material part so
deteriorated in quality as to be substantially changed in character, the buyer may at his option
treat the sale:
(1) As avoided; or
(2) As valid in all of the existing goods or in so much thereof as have not
deteriorated, and as binding the buyer to pay the agreed price for the goods in which the
ownership will pass, if the sale was divisible.1000
996
Art. 1189
997
Art. 1263
998
Contract is void or inexistent.
999
Art. 1493
1000
Art. 1494
235
D. When loss occurred after perfection but before delivery1001
General rule:
Who bears the risk of loss is governed by the stipulations in the contract
Exceptions:
1. when object sold consists of fungible goods for a price fixed according to weight,
number or measure
General rule:
While a contract of sale is consensual, ownership of the thing sold is acquired only
upon its delivery, actual or constructive, to the buyer.1003
Exceptions:
2. Contract to sell
1001
In the absence of any stipulation:
First view:
Buyer bears the loss as an exception to the rule of res perit domino.
Contrary view:
Where the ownership is transferred by delivery, as in our code, the application of the axiom res perit
domino, imposes the risk of loss upon the vendor; hence, if the thing is lost by fortuitous event before
delivery, the vendor suffers the loss and cannot recover the price from the vendee (Commentaries and
Jurisprudence on the Civil Code of the Philippines, Tolentino)
1002
Civil Code of the Philippines, Paras. This view conforms with Manresas view. Buyer would have been
the one to profit from the thing had it not been lost or destroyed.
1003
Daus vs. Sps. De Leon, 16 June 2003
This is true even if the purchase has been made on credit. Payment of the purchase price is not
essential to the transfer of ownership, as long as the property sold has been delivered (Sampaguita
Pictures, Inc vs. Jalwindor Manufacturers, Inc. 93 SCRA 420)
Nonpayment only creates a right to demand payment or to rescind the contract, or to criminal
prosecution in the case of bouncing checks. (EDCA Publishing and Distributing Corp. vs. Santos, 184 SCRA
614)
1004
contractual reservation of title
236
3. Contract of insurance a perfected contract of sale, even without delivery, vests in
the vendee an equitable title, an existing interest over the goods sufficient to be the subject
of insurance.
Unless otherwise agreed, the goods remain at the seller's risk until the ownership
therein is transferred to the buyer, but when the ownership therein is transferred to the
buyer the goods are at the buyer's risk whether actual delivery has been made or not, except
that:
(1) Where delivery of the goods has been made to the buyer or to a bailee for the
buyer, in pursuance of the contract and the ownership in the goods has been retained by the
seller merely to secure performance by the buyer of his obligations under the contract, the
goods are at the buyer's risk from the time of such delivery;
(2) Where actual delivery has been delayed through the fault of either the buyer or
seller the goods are at the risk of the party in fault.1005
A. Definition
"Document of title to goods" includes any bill of lading, dock warrant, "quedan," or
warehouse receipt or order for the delivery of goods, or any other document used in the
ordinary course of business in the sale or transfer of goods, as proof of the possession or
control of the goods, or authorizing or purporting to authorize the possessor of the
document to transfer or receive, either by indorsement or by delivery, goods represented by
such document.1006
A document of title in which it is stated that the goods referred to therein will be
delivered to the bearer, or to the order of any person named in such document.1007
Those by the terms of which the bailee undertakes to deliver the goods to the bearer
and which the bailee undertakes to deliver the goods to the order of a specified person.
1005
Art. 1504
1006
Art. 1636
1007
Art. 1507
237
D. Non-negotiable documents of title
Those by the terms of which the goods covered are deliverable to a specified
person.
A person to whom a document of title has been transferred, but not negotiated,
acquires thereby, as against the transferor, the title to the goods, subject to the terms of any
agreement with the transferor.
If the document is non-negotiable, such person also acquires the right to notify the
bailee who issued the document of the transfer thereof, and thereby to acquire the direct
obligation of such bailee to hold possession of the goods for him according to the terms of
the document.
If goods are delivered to a bailee by the owner or by a person whose act in conveying
the title to them to a purchaser in good faith for value would bind the owner and a
negotiable document of title is issued for them they cannot thereafter, while in possession of
such bailee, be attached by garnishment or otherwise or be levied under an execution unless
the document be first surrendered to the bailee or its negotiation enjoined. The bailee shall
in no case be compelled to deliver up the actual possession of the goods until the document
is surrendered to him or impounded by the court.1010
1008
Art. 1516
1009
Art. 1514
1010
Art. 1519
238
A creditor whose debtor is the owner of a negotiable document of title shall be
entitled to such aid from courts of appropriate jurisdiction by injunction and otherwise in
attaching such document or in satisfying the claim by means thereof as is allowed at law or in
equity in regard to property which cannot readily be attached or levied upon by ordinary
legal process.1011
(1) When the whole of the price has not been paid or tendered;
(2) When a bill of exchange or other negotiable instrument has been received as
conditional payment, and the condition on which it was received has been broken by reason
of the dishonor of the instrument, the insolvency of the buyer, or otherwise. 1012
1. Sale of Movables
Where the seller delivers to the buyer a quantity of goods less than he contracted to
sell, the buyer may reject them, but if the buyer accepts or retains the goods so delivered,
knowing that the seller is not going to perform the contract in full, he must pay for them at
the contract rate. If, however, the buyer has used or disposed of the goods delivered before
he knows that the seller is not going to perform his contract in full, the buyer shall not be
liable for more than the fair value to him of the goods so received.
1011
Art. 1520
1012
Art. 1525
239
Where the seller delivers to the buyer a quantity of goods larger than he contracted
to sell, the buyer may accept the goods included in the contract and reject the rest. If the
buyer accepts the whole of the goods so delivered he must pay for them at the contract rate.
Where the seller delivers to the buyer the goods he contracted to sell mixed with
goods of a different description not included in the contract, the buyer may accept the goods
which are in accordance with the contract and reject the rest.
If the subject matter is indivisible, the buyer may reject the whole of the goods.
The provisions of this article are subject to any usage of trade, special agreement, or
course of dealing between the parties.1013
The vendor is bound to deliver the thing sold and its accessions and accessories in
the condition in which they were upon the perfection of the contract.
All the fruits shall pertain to the vendee from the day on which the contract was
perfected.1014
Any injury to or benefit from the thing sold, after the contract has been perfected,
from the moment of the perfection of the contract to the time of delivery, shall be governed
by Articles 1163 to 1165, and 1262.1015
This rule shall apply to the sale of fungible things, made independently and for a
single price, or without consideration of their weight, number, or measure.
Should fungible things be sold for a price fixed according to weight, number, or
measure, the risk shall not be imputed to the vendee until they have been weighed, counted,
or measured and delivered, unless the latter has incurred in delay.1016
2. Sale of Immovables
The obligation to deliver the thing sold includes that of placing in the control of the
vendee all that is mentioned in the contract, in conformity with the following rules:
If the sale of real estate should be made with a statement of its area, at the rate of a
certain price for a unit of measure or number, the vendor shall be obliged to deliver to the
vendee, if the latter should demand it, all that may have been stated in the contract; but,
should this be not possible, the vendee may choose between a proportional reduction of the
price and the rescission of the contract, provided that, in the latter case, the lack in the area
be not less than one-tenth of that stated.
1013
Art. 1522
1014
Art. 1537
1015
See Reference
1016
Art. 1480
240
The same shall be done, even when the area is the same, if any part of the
immovable is not of the quality specified in the contract.
The rescission, in this case, shall only take place at the will of the vendee, when the
inferior value of the thing sold exceeds one-tenth of the price agreed upon.
Nevertheless, if the vendee would not have bought the immovable had he known of
its smaller area of inferior quality, he may rescind the sale.1017
The actions arising from Articles 1539 and 15421018 shall prescribe in six months,
counted from the day of delivery.1019
The buyer is entitled to examine the goods to The buyer is deemed to have accepted the
decide whether he will become the owner, goods when:
and until the examination is completed or
waived, he is under no obligation to accept 1. he intimates to the seller that the has
them. He may however waive this right by accepted them
simply refusing to inspect the goods, taking
them as they are or by any other similar 2. the goods have been delivered to him and
act.1020 he does any act in relation to them which is
inconsistent with the ownership of the seller
Exception:
1017
Art. 1539
1018
See reference
1019
Art. 1543
1020
See Art. 1584
241
B. Payment of price
1. Where the ownership has passed to the buyer and he wrongfully neglects or
refuses to pay for the price
2. Where the price is payable on a day certain and he wrongfully neglects or refuses
to pay for the price, irrespective of the delivery or transfer of title
3. Where the goods cannot readily be resold for a reasonable price and the buyer
wrongfully refuses to accept them even before the ownership of the goods has passed, if
Article 15961021 is inapplicable.
XII. Warranties
A. Express warranties
Any affirmation of fact or any promise by the seller relating to the thing is an express
warranty if the natural tendency of such affirmation or promise is to induce the buyer to
purchase the same, and if the buyer purchase the thing relying thereon. No affirmation of
the value of the thing, nor any statement purporting to be a statement of the seller's opinion
only, shall be construed as a warranty, unless the seller made such affirmation or statement
as an expert and it was relied upon by the buyer.1023
1021
See Reference
1022
1. it must be an affirmation of fact or any promise by seller relating to the subject matter of sale
2. natural tendency of affirmation or promise is to induce buyer to purchase subject matter
3. buyer purchases the subject matter relying thereon
1023
Art. 1546
242
B. Implied warranties1024
That which the law derives by implication or inference from the nature of the
transaction or the relative situation or circumstances of the parties, irrespective of any
intention of the seller to create it.
a. Warranty against eviction
b. Warranty against hidden defects
c. Warranty as to Fitness and Merchantability
(1) An implied warranty on the part of the seller that he has a right to sell the thing
at the time when the ownership is to pass, and that the buyer shall from that time have and
enjoy the legal and peaceful possession of the thing;
(2) An implied warranty that the thing shall be free from any hidden faults or
defects, or any charge or encumbrance not declared or known to the buyer.
This shall not be held to render liable a sheriff, auctioneer, mortgagee, pledgee, or
other person professing to sell by virtue of authority in fact or law, for the sale of a thing in
which a third person has a legal or equitable interest.1025
C. Effects of warranties
Where there is a breach of warranty by the seller, the buyer may, at his election:
(1) Accept or keep the goods and set up against the seller, the breach of warranty by
way of recoupment in diminution or extinction of the price;
(2) Accept or keep the goods and maintain an action against the seller for damages
for the breach of warranty;
(3) Refuse to accept the goods, and maintain an action against the seller for damages
for the breach of warranty;
(4) Rescind the contract of sale and refuse to receive the goods or if the goods have
already been received, return them or offer to return them to the seller and recover the price
or any part thereof which has been paid.
1024
An implied warranty is a natural, not an essential element of a contract, and is deemed incorporated
in the contract of sale. It may however, be waived or modified by express stipulation. (De Leon)
1025
Art. 1547
243
When the buyer has claimed and been granted a remedy in anyone of these ways, no
other remedy can thereafter be granted, without prejudice to the provisions of the second
paragraph of Article 1191.1026
Where the goods have been delivered to the buyer, he cannot rescind the sale if he
knew of the breach of warranty when he accepted the goods without protest, or if he fails to
notify the seller within a reasonable time of the election to rescind, or if he fails to return or
to offer to return the goods to the seller in substantially as good condition as they were in at
the time the ownership was transferred to the buyer. But if deterioration or injury of the
goods is due to the breach or warranty, such deterioration or injury shall not prevent the
buyer from returning or offering to return the goods to the seller and rescinding the sale.
Where the buyer is entitled to rescind the sale and elects to do so, he shall cease to
be liable for the price upon returning or offering to return the goods. If the price or any part
thereof has already been paid, the seller shall be liable to repay so much thereof as has been
paid, concurrently with the return of the goods, or immediately after an offer to return the
goods in exchange for repayment of the price.
Where the buyer is entitled to rescind the sale and elects to do so, if the seller refuses
to accept an offer of the buyer to return the goods, the buyer shall thereafter be deemed to
hold the goods as bailee for the seller, but subject to a lien to secure the payment of any
portion of the price which has been paid, and with the remedies for the enforcement of such
lien allowed to an unpaid seller by Article 1526.1027
(5) In the case of breach of warranty of quality, such loss, in the absence of special
circumstances showing proximate damage of a greater amount, is the difference between the
value of the goods at the time of delivery to the buyer and the value they would have had if
they had answered to the warranty.1028
D. Effects of waivers
Parties may increase or diminish implied warranty against eviction; but effect
depends on good faith or bad faith on the part of the seller.
1. seller in bad faith & there is waiver against eviction null & void
3. buyer with knowledge of risk of eviction assumed its consequences & made a
waiver vendor not liable.1030
1026
See Reference
1027
Ibid.
1028
Art. 1599
1029
pay value of subject matter at time of eviction
1030
applicable only to waiver of warranty against eviction
244
E. Buyers options in case of breach of warranty1031
Actions for breach of the contract of sale of goods shall be governed particularly by
the provisions of this Chapter, and as to matters not specifically provided for herein, by
other applicable provisions of this Title.1032
In the preceding articles in this Title governing the sale of goods, unless the context
or subject matter otherwise requires:
(1) "Document of title to goods" includes any bill of lading, dock warrant, "quedan,"
or warehouse receipt or order for the delivery of goods, or any other document used in the
ordinary course of business in the sale or transfer of goods, as proof of the possession or
control of the goods, or authorizing or purporting to authorize the possessor of the
document to transfer or receive, either by indorsement or by delivery, goods represented by
such document.
"Goods" includes all chattels personal but not things in action or money of legal
tender in the Philippines. The term includes growing fruits or crops.
"Specific goods" means goods identified and agreed upon at the time a contract of
sale is made.
(2) A person is insolvent within the meaning of this Title who either has ceased to
pay his debts in the ordinary course of business or cannot pay his debts as they become due,
whether insolvency proceedings have been commenced or not.
When goods delivered to buyer he cannot rescind sale if he knew of the breach of warranty when he
accepted goods without protest if he fails to return or offer to return goods to seller in substantially as
good condition as they were at time ownership was transferred
When goods deteriorated, buyer can still return them in that condition if such is due to breach or
warranty
1031
See C. Effects of Warranties, supra
1032
Art. 1594
245
(3) Goods are in a "deliverable state" within the meaning of this Title when they are
in such a state that the buyer would, under the contract, be bound to take delivery of
them.1033
1. Sale of Movables
b. Sale of Goods
The Recto law1037 provides for remedies of a seller in contracts of sale of personal
property by installment, as follows:
(1) Exact fulfillment of the obligation, should the vendee fail to pay;
(2) Cancel the sale, should the vendee's failure to pay cover two or more installments;
(3) Foreclose the chattel mortgage on the thing sold, if one has been constituted,
should the vendee's failure to pay cover two or more installments. In this case, he shall have
no further action against the purchaser to recover any unpaid balance of the price. Any
agreement to the contrary shall be void.1038
In the case referred to in the two preceding articles, a stipulation that the installments
or rents paid shall not be returned to the vendee or lessee shall be valid insofar as the same
may not be unconscionable under the circumstances.1040
1033
Art. 1636
1034
Art. 1593
1035
Art. 1595
1036
Art. 1596
1037
Installment Sales Law
1038
Art. 1484
1039
Art. 1485
246
C. Sale of Immovables
1. P.D. 957
The rights of the buyer in the event of this failure to pay the installments due for
reasons other than the failure of the owner or developer to develop the project shall be
governed by Republic Act No. 6552.
Where the transaction or contract was entered into prior to the effectivity of
Republic Act No. 6552 on August 26, 1972, the defaulting buyer shall be entitled to the
corresponding refund based on the installments paid after the effectivity of the law in the
absence of any provision in the contract to the contrary.1042
Where the buyer has paid at least two (2) years of installment, the buyer is entitled to
the following rights in case he defaults in payments of succeeding installments:
1) To pay, without additional interest, the unpaid installments due within the total
grace period earned by him which is fixed at the rate of one month grace period for every
one year of installments.
2) If the contract is cancelled, the seller shall refund to the buyer the cash surrender
value of the payments on the property equivalent to the 50% of the total payment made
every year but not to exceed 90% of the total payments made.
Where the buyer has paid less than two years, he shall be entitled to a grace period of
60 days from the date the installment became due. If he fails to pay the installments due at
the expiration of the grace period, the seller may cancel the contract after 30 days from
1040
Art. 1486
1041
Sec. 23
1042
Sec. 24
1043
Maceda Law
247
receipt by the buyer of the notice of cancellation, or the demand for rescission of the
contract by a notarial act.
1. Sale of Movable
When seller fails to deliver, buyer may seek specific performance without giving
seller option to retain goods on payment of damages.
2. Sale of Immovables
i. Suspend payment
In case of subdivision or condo projects: If real estate developer fails to comply with
obligations according to approved plan:
i. Rescind
ii. Suspend payment until seller complies
A. Causes
Other causes:
1. Annulment,
2. Rescission,
3. Fulfillment of a resolutory condition, and
248
4. Prescription.1044
Sales are extinguished by the same causes as all other obligations and by
conventional or legal redemption.1045
B. Conventional redemption
The right which the vendor reserves to himself, to reacquire the property sold
provided he returns to the vendee:
Conventional redemption shall take place when the vendor reserves the right to
repurchase the thing sold, with the obligation to comply with the provisions of Article
16161046 and other stipulations which may have been agreed upon.1047
C. Equitable mortgage
One which lacks the proper formalities, form of words, or other requisites
prescribed by law for a mortgage, but shows the intention of the parties to make the
property subject of the contract as security for a debt and contains nothing impossible or
contrary to law.1048
(1) When the price of a sale with right to repurchase is unusually inadequate;
(2) When the vendor remains in possession as lessee or otherwise;
(3) When upon or after the expiration of the right to repurchase another instrument
extending the period of redemption or granting a new period is executed;
1044
Art. 1231
1045
Art. 1600
1046
The vendor cannot avail himself of the right of repurchase without returning to the vendee the price
of the sale, and in addition:
(1) The expenses of the contract, and any other legitimate payments made by reason of the sale;
(2) The necessary and useful expenses made on the thing sold.
1047
Art. 1601
1048
Cachola vs. CA, 208 SCRA 496
249
(4) When the purchaser retains for himself a part of the purchase price;
(5) When the vendor binds himself to pay the taxes on the thing sold;
(6) In any other case where it may be fairly inferred that the real intention of the
parties is that the transaction shall secure the payment of a debt or the performance of any
other obligation.
In any of the foregoing cases, any money, fruits, or other benefit to be received by
the vendee as rent or otherwise shall be considered as interest which shall be subject to the
usury laws.1049
Option contract
A contract granting a privilege in one person, for which he has paid a consideration,
which gives him the right to buy certain merchandise, at anytime within the agreed period, at
a fixed price.1053
In an option to buy, the party who has an option may validly and effectively exercise
his right by merely notifying the owner of the formers decision to buy and expressing his
readiness to pay the stipulated price.
E. Period of redemption
The right referred to in article 1601,1054 in the absence of an express agreement, shall
last four years from the date of the contract.
1049
Art. 1602
1050
Art. 1603
1051
supra
1052
Art. 1604
1053
An option without consideration is void and the effect is the same as if there was no option.
However, in Sanchez vs. Rigos (1972), even though the option was not supported by a consideration,
the moment it was accepted, a perfected contract of sale resulted, applying Art. 1324 of the NCC. In view
of the ruling of the Supreme Court, the only importance of the consideration for an option is that the
option cannot be withdrawn by the grantor after acceptance.
1054
supra
250
However, the 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.1055
The vendor cannot avail himself of the right of repurchase without returning to the
vendee the price of the sale, and in addition:
(1) The expenses of the contract, and any other legitimate payments made by reason
of the sale;
(2) The necessary and useful expenses made on the thing sold.1056
G. Legal redemption
The right to be subrogated, upon the same terms and conditions stipulated in the
contract, in the place of one who acquires a thing by purchase or dation in payment, or by
any other transaction whereby ownership is transmitted by onerous title.1057
H. Age redemption1058
1055
Art. 1606
1056
Art. 1616
1057
Art. 1619
May be effected against movables or immovables.
It must be exercised within thirty (30) days from the notice in writing by the vendor.
1058
ibid
1059
PD 957, see Reference
1060
RA 4726, ibid
251
SUCCESSION
I. General Provisions
The inheritance includes all the property, rights and obligations of a person which
are not extinguished by his death.1061
(1) Testamentary;
(2) Legal or intestate; or
(3) Mixed.1062
Testamentary succession is that which results from the designation of an heir, made
in a will executed in the form prescribed by law.1063
Mixed succession is that effected partly by will and partly by operation of law.1064
A. Definition/What is transmitted
"Decedent" is the general term applied to the person whose property is transmitted
through succession, whether or not he left a will. If he left a will, he is also called the
testator.1066
The inheritance of a person includes not only the property and the transmissible
rights and obligations existing at the time of his death, but also those which have accrued
thereto since the opening of the succession.1067
1061
Art. 776
1062
Art. 778
1063
Art. 779
1064
Art. 780
1065
Art. 774
1066
Art. 775
1067
Art. 781
252
B. When succession occurs
The rights to the succession are transmitted from the moment of the death of the
decedent.1068
Devisees and legatees are persons to whom gifts of real and personal property are
respectively given by virtue of a will.1069
A. Wills
1. In General
A will is an act whereby a person is permitted, with the formalities prescribed by law,
to control to a certain degree the disposition of this estate, to take effect after his death.1070
The testator may not make a testamentary disposition in such manner that another
person has to determine whether or not it is to be operative.1071
The making of a will is a strictly personal act; it cannot be left in whole or in part to
the discretion of a third person, or accomplished through the instrumentality of an agent or
attorney.1072
1068
Art. 777
1069
Art. 782
1070
Art. 783
1071
Art. 787
1072
Art. 784
1073
Art. 785
253
a) Exception
The testator may entrust to a third person the distribution of specific property or
sums of money that he may leave in general to specified classes or causes, and also the
designation of the persons, institutions or establishments to which such property or sums
are to be given or applied.1074
1074
Art. 786
1075
The testators intent (animus testandi), as well as giving effect to such intent, is primordial. It is
sometimes said that the supreme law in succession is the intent of the testator. All rules of construction
are designed to ascertain and give effect to that intention. It is only when the intention of the testator is
contrary to law, morals, or public policy that it cannot be given effect.
In case of doubt, that interpretation by which the disposition is to be operative shall be preferred.
That construction is to be adopted which will sustain and uphold the will in all its parts, if it can be done
consistently with the established rules of law.
1076
Art. 788
1077
Art. 789
1078
Art. 790
1079
Art. 791
254
The invalidity of one of several dispositions contained in a will does not result in the
invalidity of the other dispositions, unless it is to be presumed that the testator would not
have made such other dispositions if the first invalid disposition had not been made.1080
Property acquired after the making of a will shall only pass thereby, as if the testator
had possessed it at the time of making the will, should it expressly appear by the will that
such was his intention.1081
Every devise or legacy shall cover all the interest which the testator could device or
bequeath in the property disposed of, unless it clearly appears from the will that he intended
to convey a less interest.1082
All persons who are not expressly prohibited by law may make a will.1085
A married woman may make a will without the consent of her husband, and without
the authority of the court.1086
A married woman may dispose by will of all her separate property as well as her
share of the conjugal partnership or absolute community property.1087
a. Age Requirement
Persons of either sex under eighteen (18) years of age cannot make a will.1088
b. Soundness of Mind
It is essential that the testator be of sound mind at the time of execution of the
1089
will.
1080
Art. 792
1081
Art. 793
1082
Art. 794
1083
Art. 795
1084
Testamentary capacity:
1. All persons who are not expressly prohibited by law
2. 18 years old and above
3. Of sound mind, at the time of its execution
1085
Art. 796
1086
Art. 802
1087
Art. 803
1088
Art. 797
1089
Art. 798
255
(i) When testator is deemed to be of sound mind
It is not necessary that the testator be in full possession of all his reasoning faculties,
or that his mind be wholly unbroken, unimpaired, or unshattered by disease, injury or other
cause.
It shall be sufficient if the testator was able at the time of making the will to know
the nature of the estate to be disposed of, the proper objects of his bounty, and the character
of the testamentary act.1090
The burden of proof that the testator was not of sound mind at the time of making
his dispositions is on the person who opposes the probate of the will; but if the testator, one
month, or less, before making his will was publicly known to be insane, the person who
maintains the validity of the will must prove that the testator made it during a lucid
interval.1091
(ii) Presumptions
Does not invalidate an effective will, nor is the will of an incapable validated by the
supervening of capacity.1092
3. Form
The forms and solemnities of contracts, wills, and other public instruments shall be
governed by the laws of the country in which they are executed.
When the acts referred to are executed before the diplomatic or consular officials of
the Republic of the Philippines in a foreign country, the solemnities established by
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.1093
1090
Art. 799
1091
Art. 800
1092
Art. 801
1093
Art. 17
256
When a Filipino is in a foreign country, he is authorized to make a will in any of the
forms established by the law of the country in which he may be. Such will may be probated
in the Philippines.1094
The will of an alien who is abroad produces effect in the Philippines if made with the
formalities prescribed by the law of the place in which he resides, or according to the
formalities observed in his country, or in conformity with those which this Code
prescribes.1095
Laws relating to family rights and duties, or to the status, condition and legal capacity
of persons are binding upon citizens of the Philippines, even though living abroad.1098
Real property as well as personal property is subject to the law of the country where
it is stipulated.1099
b) Common requirements
(i) In Writing
(ii) Language/Dialect Requirement
Every will must be in writing and executed in a language or dialect known to the
testator.1101
1094
Art. 815
1095
Art. 816
1096
Art. 817
1097
Art. 819
1098
Art. 15
1099
Art. 16
1100
Art. 1039
1101
Art. 804
257
c) Notarial Wills
1. In writing
2. In a language or dialect known to the testator
3. Subscribed at the end by the testator himself or by the testators name written by
some other person in his presence, and by his express direction
4. Attested & subscribed by three or more credible witnesses in the presence of the
testator and of one another
5. Each and every page, except the last, must be signed by the testator or by the
person requested by him to write his name, and by the instrumental witnesses of the will, on
the left margin
6. Each and every page of the will must be numbered correlatively in letters placed
on the upper part of each page
b. The fact that the testator signed the will and every page, or caused some
other person to write his name, under his express direction, in the presence of the
instrumental witnesses
c. All the instrumental witnesses witnessed and signed the will and all its
pages in the presence of the testator and of one another
1. Testator must personally read the will, if The will shall be read to the testator twice
able to do so;
1. Once by one of the subscribing witnesses
2. Otherwise, he shall designate two persons
to read it and communicate to him, in some 2. Once by the notary public before whom
practicable manner, its contents.1103 the will is acknowledged.1104
1102
Arts. 805-806
258
(iii) Substantial Compliance
In the absence of bad faith, forgery, or fraud, or undue and improper pressure and
influence, defects and imperfections in the form of attestation or in the language used
therein shall not render the will invalid if it is proved that the will was in fact executed and
attested in substantial compliance with all the requirements of Article 805.1105
Any person of sound mind and of the age of eighteen (18) years or more, and not
blind, deaf or dumb, and able to read and write.1106
(2) Those who have been convicted of falsification of a document, perjury or false
testimony.1107
If the witnesses attesting the execution of a will are competent at the time of
attesting, their becoming subsequently incompetent shall not prevent the allowance of the
will.1108
1103
Art. 807
1104
Art. 808
1105
Art. 809
1106
Art. 820
Qualifications of witnesses to a notarial will:
1. Of sound mind
2. Of the age of 18 years or more
3. Not blind, deaf or dumb
4. Able to read and write
5. Domiciled in the Philippines
6. Have not been convicted of falsification of a document, perjury or false testimony
1107
Art. 821
1108
Art. 822
1109
Art. 823
259
A mere charge on the estate of the testator for the payment of debts due at the time
of the testator's death does not prevent his creditors from being competent witnesses to his
will.1110
d. Holographic Wills
(i) Requirements
Must be entirely written, dated, and signed by the hand of the testator himself. It is
subject to no other form, and may be made in or out of the Philippines, and need not be
witnessed.1111
The dispositions of the testator written below his signature must be dated and signed
by him in order to make them valid as testamentary dispositions.1112
It shall be necessary that at least one (1) witness who knows the handwriting and
signature of the testator explicitly declare that the will and the signature are in the
handwriting of the testator. If the will is contested, at least three of such witnesses shall be
required.
In the absence of any competent witness, and if the court deem it necessary, expert
testimony may be resorted to.1115
e. Joint Wills
Two or more persons cannot make a will jointly, or in the same instrument, either
for their reciprocal benefit or for the benefit of a third person.1116
1110
Art. 824
1111
Art. 810
1112
Art. 812
1113
Art. 813
1114
Art. 814
1115
Art. 811
1116
Art. 818
260
Wills, prohibited above, executed by Filipinos in a foreign country shall not be valid
in the Philippines, even though authorized by the laws of the country where they may have
been executed.1117
4. Codicils
A codicil is supplement or addition to a will, made after the execution of a will and
annexed to be taken as a part thereof, by which disposition made in the original will is
explained, added to, or altered.1118
In order that a codicil may be effective, it shall be executed as in the case of a will.1119
5. Incorporate by Reference1120
Requisites:
a. The document or paper referred to in the will must be in existence at the time of
the execution of the will
b. The will must clearly describe and identify the same, stating among other things
the number of pages thereof
d. It must be signed by the testator and the witnesses on each and every page, except
in case of voluminous books of account or inventories.1121
6. Revocation
A will may be revoked by the testator at any time before his death. Any waiver or
restriction of this right is void.1122
A revocation done outside the Philippines, by a person who does not have his
domicile in this country, is valid when it is done according to the law of the place where the
will was made, or according to the law of the place in which the testator had his domicile at
1117
Art. 819
1118
Art. 825
1119
Art. 826
1120
Contemplates only lists of properties, books of accounts, and inventories. Provisions which are in the
nature of testamentary dispositions must be contained in the will itself.
1121
Art. 827
1122
Art. 828
261
the time; and if the revocation takes place in this country, when it is in accordance with the
provisions of this Code.1123
Subsequent wills which do not revoke the previous ones in an express manner, annul
only such dispositions in the prior wills as are inconsistent with or contrary to those
contained in the later wills.1124
A revocation made in a subsequent will shall take effect, even if the new will should
become inoperative by reason of the incapacity of the heirs, devisees or legatees designated
therein, or by their renunciation.1125
A revocation of a will based on a false cause or an illegal cause is null and void1126.
The recognition of an illegitimate child does not lose its legal effect, even though the
will wherein it was made should be revoked.1127
a. Kinds
(2) By some will, codicil, or other writing executed as provided in case of wills;1129 or
(3) By burning, tearing, cancelling, or obliterating the will with the intention of
revoking it, by the testator himself, or by some other person in his presence, and by his
express direction. If burned, torn, cancelled, or obliterated by some other person, without
the express direction of the testator, the will may still be established, and the estate
1123
Art. 829
1124
Art. 831
1125
Art. 832
1126
Art. 833
1127
Art. 834
1128
a. legal separation revokes testamentary provisions in favor of the offending spouse;
b. preterition revokes the institution of heir;
c. judicial action for recovery of debt revokes a legacy of credit/remission of debt;
d. transformation, alienation, or loss of bequeathed property revokes a legacy of such property;
e. act of unworthiness by an heir, devisee/legatee revokes testamentary provisions in his favor;
f. if both spouses of the subsequent marriage acted in bad faith, said marriage shall be void ab initio
and testamentary dispositions made by one in favor of the other are revoked by operation of law (Art. 44,
FC); and
g. void ab initio or annulled marriages revoke testamentary dispositions made by one spouse in favor
of the other (Art. 50, FC).
1129
Which may either be:
a. Express when there is a revocatory clause expressly revoking the previous will or a part thereof
b. Implied when the provisions thereof are partially or entirely inconsistent with those of the
previous will.
262
distributed in accordance therewith, if its contents, and due execution, and the fact of its
unauthorized destruction, cancellation, or obliteration are established.1130
a. Probate Requirement
No will shall pass either real or personal property unless it is proved and allowed.
The testator himself may, during his lifetime, petition the court having jurisdiction
for the allowance of his will.
The Supreme Court shall formulate such additional Rules of Court as may be
necessary for the allowance of wills on petition of the testator.
Subject to the right of appeal, the allowance of the will, either during the lifetime of
the testator or after his death, shall be conclusive as to its due execution.1131
(1) The formalities required by law have not been complied with;
(2) The testator was insane, or otherwise mentally incapable of making a will, at the
time of its execution;
(3) It was executed through force or under duress, or the influence of fear, or threats;
(4) It was procured by undue and improper pressure and influence, on the part of the
beneficiary or of some other person;
(6) The testator acted by mistake or did not intend that the instrument he signed
should be his will at the time of affixing his signature thereto.1132
263
(a) Exceptions: when practical
considerations demand the intrinsic
validity of the will be resolved
Binding upon the whole world;1133 and public policy and sound practice demand that
at the risk of occasional errors judgment of courts should become final at some definite date
fixed by law.
B. Institution of Heirs
An act by virtue of which a testator designates in his will the person or persons who
are to succeed him in his property and transmissible rights and obligations.1135
A will shall be valid even though it should not contain an institution of an heir, or
such institution should not comprise the entire estate, and even though the person so
instituted should not accept the inheritance or should be incapacitated to succeed.
In such cases the testamentary dispositions made in accordance with law shall be
complied with and the remainder of the estate shall pass to the legal heirs.1136
One who has no compulsory heirs may dispose by will of all his estate or any part of
it in favor of any person having capacity to succeed.
One who has compulsory heirs may dispose of his estate provided he does not
contravene the provisions of this Code with regard to the legitime of said heirs.1137
The testator shall designate the heir by his name and surname, and when there are
two persons having the same names, he shall indicate some circumstance by which the
instituted heir may be known.
Even though the testator may have omitted the name of the heir, should he
designate him in such manner that there can be no doubt as to who has been instituted, the
institution shall be valid.1138
1132
Art. 839
1133
Manalo vs. Paredes, 47 Phil. 938; In re Estates of Johnson, 39 Phil. 156
1134
See Art. 839, supra
1135
Art. 840
The proper test in order to determine the validity of an institution of heir is the possibility of finally
ascertaining the identity of the instituted heir by intrinsic or extrinsic evidence.
1136
Art. 841
1137
Art. 842
1138
Art. 843
264
An error in the name, surname, or circumstances of the heir shall not vitiate the
institution when it is possible, in any other manner, to know with certainty the person
instituted.
If among persons having the same names and surnames, there is a similarity of
circumstances in such a way that, even with the use of other proof, the person instituted
cannot be identified, none of them shall be an heir.1139
Every disposition in favor of an unknown person shall be void, unless by some event
or circumstance his identity becomes certain. However, a disposition in favor of a definite
class or group of persons shall be valid.1140
When the testator institutes some heirs individually and others collectively as when
he says, "I designate as my heirs A and B, and the children of C," those collectively
designated shall be considered as individually instituted, unless it clearly appears that the
intention of the testator was otherwise.1142
If the testator should institute his brothers and sisters, and he has some of full blood
and others of half blood, the inheritance shall be distributed equally unless a different
intention appears.1143
When the testator calls to the succession a person and his children they are all
deemed to have been instituted simultaneously and not successively.1144
The statement of a false cause for the institution of an heir shall be considered as not
written, unless it appears from the will that the testator would not have made such
institution if he had known the falsity of such cause.1145
If the testator has instituted only one heir, and the institution is limited to an aliquot
part of the inheritance, legal succession takes place with respect to the remainder of the
estate.
The same rule applies if the testator has instituted several heirs, each being limited to
an aliquot part, and all the parts do not cover the whole inheritance.1146
If it was the intention of the testator that the instituted heirs should become sole
heirs to the whole estate, or the whole free portion, as the case may be, and each of them has
1139
Art. 844
1140
Art. 845
1141
Art. 846
1142
Art. 847
1143
Art. 848
1144
Art. 849
1145
Art. 850
1146
Art. 851
265
been instituted to an aliquot part of the inheritance and their aliquot parts together do not
cover the whole inheritance, or the whole free portion, each part shall be increased
proportionally.1147
If each of the instituted heirs has been given an aliquot part of the inheritance, and
the parts together exceed the whole inheritance, or the whole free portion, as the case may
be, each part shall be reduced proportionally.1148
A voluntary heir who dies before the testator transmits nothing to his heirs.
A compulsory heir who dies before the testator, a person incapacitated to succeed,
and one who renounces the inheritance, shall transmit no right to his own heirs except in
cases expressly provided for in this Code.1149
1. Preterition
a. Definition
The omission in the testators will of one, some, or all of the compulsory heirs in the
direct line, whether living at the time of the execution of the will or born after the death of
the testator.1150
b. Requisites
c. Effects
1147
Art. 852
1148
Art. 853
1149
Art. 856
1150 st
Art. 854, 1 par.
1151 nd
Art. 854, 2 par.
266
2. Concept1152
The share of a child or descendant omitted in a will must first be taken from the part
of the estate not disposed of by the will, if any; if that is not sufficient, so much as may be
necessary must be taken proportionally from the shares of the other compulsory heirs.1154
Any compulsory heir to whom the testator has left by any title less than the legitime
belonging to him may demand that the same be fully satisfied.1155
Testamentary dispositions that impair or diminish the legitime of the compulsory
heirs shall be reduced on petition of the same, insofar as they may be inofficious or
excessive.1156
To determine the legitime, the value of the property left at the death of the testator
shall be considered, deducting all debts and charges, which shall not include those imposed
in the will.
To the net value of the hereditary estate, shall be added the value of all donations by
the testator that are subject to collation, at the time he made them.1157
Donations given to children shall be charged to their legitime.
Donations made to strangers shall be charged to that part of the estate of which the
testator could have disposed by his last will.
Insofar as they may be inofficious or may exceed the disposable portion, they shall
be reduced according to the rules established by this Code.1158
Donations which an illegitimate child may have received during the lifetime of his
father or mother, shall be charged to his legitime.
Should they exceed the portion that can be freely disposed of, they shall be reduced
in the manner prescribed by this Code.1159
After the legitime has been determined in accordance with the three preceding
articles, the reduction shall be made as follows:
1152
See Definition, supra
1153
see Legitime, infra
1154
Art. 855
1155
Art. 906
1156
Art. 907
1157
Art. 908
1158
Art. 909
1159
Art. 910
267
(1) Donations shall be respected as long as the legitime can be covered, reducing or
annulling, if necessary, the devises or legacies made in the will;
(2) The reduction of the devises or legacies shall be pro rata, without any distinction
whatever.
If the testator has directed that a certain devise or legacy be paid in preference to
others, it shall not suffer any reduction until the latter have been applied in full to the
payment of the legitime.
(3) If the devise or legacy consists of a usufruct or life annuity, whose value may be
considered greater than that of the disposable portion, the compulsory heirs may choose
between complying with the testamentary provision and delivering to the devisee or legatee
the part of the inheritance of which the testator could freely dispose.1160
If the devise subject to reduction should consist of real property, which cannot be
conveniently divided, it shall go to the devisee if the reduction does not absorb one-half of
its value; and in a contrary case, to the compulsory heirs; but the former and the latter shall
reimburse each other in cash for what respectively belongs to them.
The devisee who is entitled to a legitime may retain the entire property, provided its
value does not exceed that of the disposable portion and of the share pertaining to him as
legitime.1161
If the heirs or devisees do not choose to avail themselves of the right granted by the
preceding article, any heir or devisee who did not have such right may exercise it; should the
latter not make use of it, the property shall be sold at public auction at the instance of any
one of the interested parties.1162
The testator may devise and bequeath the free portion as he may deem fit.1163
A compulsory heir may, in consequence of disinheritance, be deprived of his
legitime, for causes expressly stated by law.1164
Disinheritance can be effected only through a will wherein the legal cause therefor
shall be specified.1165
The burden of proving the truth of the cause for disinheritance shall rest upon the
other heirs of the testator, if the disinherited heir should deny it.1166
Disinheritance without a specification of the cause, or for a cause the truth of which,
if contradicted, is not proved, or which is not one of those set forth in this Code, shall annul
the institution of heirs insofar as it may prejudice the person disinherited; but the devises
1160
Art. 911
1161
Art. 912
1162
Art. 913
1163
Art. 914
1164
Art. 915
1165
Art. 916
1166
Art. 917
268
and legacies and other testamentary dispositions shall be valid to such extent as will not
impair the legitime.1167
C. Substitution of Heirs
The testator may designate one or more persons to substitute the heir or heirs
instituted in case such heir or heirs should die before him, or should not wish, or should be
incapacitated to accept the inheritance.
Two or more persons may be substituted for one; and one person for two or more
1169
heirs.
The substitute shall be subject to the same charges and conditions imposed upon the
instituted heir, unless and testator has expressly provided the contrary, or the charges or
conditions are personally applicable only to the heir instituted.1171
(1) Fideicommissary substitutions which are not made in an express manner, either
by giving them this name, or imposing upon the fiduciary the absolute obligation to deliver
the property to a second heir;
(3) Those which impose upon the heir the charge of paying to various persons
successively, beyond the limit prescribed in article 863, a certain income or pension;
(4) Those which leave to a person the whole or part of the hereditary property in
order that he may apply or invest the same according to secret instructions communicated to
him by the testator.1172
1167
Art. 918
1168
Art. 859
1169
Art. 860
1170
Art. 861
1171
Art. 862
1172
Art. 867
269
The nullity of the fideicommissary substitution does not prejudice the validity of the
institution of the heirs first designated; the fideicommissary clause shall simply be considered
as not written.1173
The dispositions of the testator declaring all or part of the estate inalienable for more
than twenty years are void.1174
1. Definition
Substitution is the appointment of another heir so that he may enter into the
inheritance in default of the heir originally instituted.1175
The act by which the testator designates the person or persons to take the place of
the heir or heirs first instituted.1176
2. Kinds:
3. Simple Substitution
When the testator designates one or more persons to substitute the heirs/s instituted
in case such heir/s should die before him, or should not wish, or should be incapacitated to
accept the inheritance
4. Fideicommissary Substitution
The fiduciary or first heir instituted is entrusted with the obligation to preserve and
to transmit to a second heir the whole or part of the inheritance, provided such substitution
does not go beyond one degree from the heir originally instituted, and provided further, that
the fiduciary or first heir and the second heir are living at the time of the death of the
testator.1178
A fideicommissary substitution can never burden the legitime.1179
1173
Art. 868
1174
Art. 870
1175
Art. 857
1176
Tolentino
1177
Art. 858
1178
Art. 863
Requisites for a fideicommissary substitution:
270
Every fideicommissary substitution must be expressly made in order that it may be
valid.
The fiduciary shall be obliged to deliver the inheritance to the second heir, without
other deductions than those which arise from legitimate expenses, credits and
improvements, save in the case where the testator has provided otherwise.1180
The second heir shall acquire a right to the succession from the time of the testator's
death, even though he should die before the fiduciary. The right of the second heir shall pass
to his heirs.1181
A provision whereby the testator leaves to a person the whole or part of the
inheritance, and to another the usufruct, shall be valid. If he gives the usufruct to various
persons, not simultaneously, but successively, the provisions of Article 8631182 shall apply.1183
The testator cannot impose any charge, condition, or substitution whatsoever upon
the legitimes prescribed in this Code. Should he do so, the same shall be considered as not
imposed.1185
1. A fiduciary or first heir instituted entrusted with the obligation to preserve and to transmit to a
fideicommissary substitute or second heir the whole or part of the inheritance
2. Such substitution must not go beyond one degree from the heir originally instituted
3. The fiduciary or first heir and the second heir are living at the time of the death of the testator
4. The fideicommissary substitution must be expressly made
5. The fideicommissary substitution is imposed on the free portion of the estate and never on the
legitime
1179
Art. 864
1180
Art. 865
1181
Art. 866
1182
supra
1183
Art. 869
1184
Art. 871
1185
Art. 872
1186
Art. 873
271
Nevertheless, the right of usufruct, or an allowance or some personal prestation may
be devised or bequeathed to any person for the time during which he or she should remain
unmarried or in widowhood.1187
Any disposition made upon the condition that the heir shall make some provision in
his will in favor of the testator or of any other person shall be void.1188
Any purely potestative condition imposed upon an heir must be fulfilled by him as
soon as he learns of the testator's death.
This rule shall not apply when the condition, already complied with, cannot be
fulfilled again.1189
Should it have existed or should it have been fulfilled at the time the will was
executed and the testator was unaware thereof, it shall be deemed as complied with.
If he had knowledge thereof, the condition shall be considered fulfilled only when it
is of such a nature that it can no longer exist or be complied with again.1190
A disposition with a suspensive term does not prevent the instituted heir from
acquiring his rights and transmitting them to his heirs even before the arrival of the term.1191
If the potestative condition imposed upon the heir is negative, or consists in not
doing or not giving something, he shall comply by giving a security that he will not do or
give that which has been prohibited by the testator, and that in case of contravention he will
return whatever he may have received, together with its fruits and interests.1192
If the heir be instituted under a suspensive condition or term, the estate shall be
placed under administration until the condition is fulfilled, or until it becomes certain that it
cannot be fulfilled, or until the arrival of the term.
The same shall be done if the heir does not give the security required in the
preceding article.1193
1187
Art. 874
1188
Art. 875
1189
Art. 876
1190
Art. 877
1191
Art. 878
1192
Art. 879
1193
Art. 880
1194
Art. 881
272
The statement of the object of the institution, or the application of the property left
by the testator, or the charge imposed by him, shall not be considered as a condition unless
it appears that such was his intention.
That which has been left in this manner may be claimed at once provided that the
instituted heir or his heirs give security for compliance with the wishes of the testator and
for the return of anything he or they may receive, together with its fruits and interests, if he
or they should disregard this obligation.1195
When without the fault of the heir, an institution referred to in the preceding article
cannot take effect in the exact manner stated by the testator, it shall be complied with in a
manner most analogous to and in conformity with his wishes.
If the person interested in the condition should prevent its fulfillment, without the
fault of the heir, the condition shall be deemed to have been complied with.1196
Conditions imposed by the testator upon the heirs shall be governed by the rules
established for conditional obligations in all matters not provided for by this Section.1197
The designation of the day or time when the effects of the institution of an heir shall
commence or cease shall be valid.
In both cases, the legal heir shall be considered as called to the succession until the
arrival of the period or its expiration. But in the first case he shall not enter into possession
of the property until after having given sufficient security, with the intervention of the
instituted heir.1198
1195
Art. 882
1196
Art. 883
1197
Art. 884
1198
Art. 885
273
E. Legitime
1. Definition
That part of the testator's property which he cannot dispose of because the law has
reserved it for certain heirs who are, therefore, called compulsory heirs.1199
(1) Legitimate children and descendants, with respect to their legitimate parents and
ascendants;
(2) In default of the foregoing, legitimate parents and ascendants, with respect to
their legitimate children and descendants;
Compulsory heirs mentioned in Nos. 3, 4, and 5 are not excluded by those in Nos. 1
and 2; neither do they exclude one another.
The father or mother of illegitimate children of the three classes mentioned, shall
inherit from them in the manner and to the extent established by this Code.1201
The latter may freely dispose of the remaining half, subject to the rights of
illegitimate children and of the surviving spouse as hereinafter provided.1202
1199
Art. 886
1200
Classes:
1.Primary those who have precedence over and exclude other compulsory heirs
a. Legitimate children and descendants (legitimate), with respect to their legitimate parents and
ascendants
2.Secondary those who succeed only in the absence of the primary heirs
a. Legitimate parents and ascendants (legitimate), with respect to their legitimate children and
descendants
3.Concurring those who succeed together with the primary or the secondary compulsory heirs
a. Widow or widower (legitimate)
b. Illegitimate children and descendants (legitimate or illegitimate)
1201
Art. 887
1202
Art. 888
274
The legitime of legitimate parents or ascendants consists of one-half of the
hereditary estates of their children and descendants.
The children or descendants may freely dispose of the other half, subject to the
rights of illegitimate children and of the surviving spouse as hereinafter provided.1203
The legitime reserved for the legitimate parents shall be divided between them
equally; if one of the parents should have died, the whole shall pass to the survivor.
If the testator leaves neither father nor mother, but is survived by ascendants of
equal degree of the paternal and maternal lines, the legitime shall be divided equally between
both lines. If the ascendants should be of different degrees, it shall pertain entirely to the
ones nearest in degree of either line.1204
If only one legitimate child or descendant of the deceased survives, the widow or
widower shall be entitled to one-fourth of the hereditary estate. In case of a legal separation,
the surviving spouse may inherit if it was the deceased who had given cause for the same.
If there are two or more legitimate children or descendants, the surviving spouse
shall be entitled to a portion equal to the legitime of each of the legitimate children or
descendants.
In both cases, the legitime of the surviving spouse shall be taken from the portion
that can be freely disposed of by the testator.1205
If the testator leaves no legitimate descendants, but leaves legitimate ascendants, the
surviving spouse shall have a right to one-fourth of the hereditary estate.
This fourth shall be taken from the free portion of the estate.1206
If the testator leaves illegitimate children, the surviving spouse shall be entitled to
one-third of the hereditary estate of the deceased and the illegitimate children to another
third. The remaining third shall be at the free disposal of the testator.1207
The legitime of each of the acknowledged natural children and each of the natural
children by legal fiction shall consist of one-half of the legitime of each of the legitimate
children or descendants.
1203
Art. 889
1204
Art. 890
1205
Art. 892
1206
Art. 893
1207
Art. 894
275
The legitime of the illegitimate children shall be taken from the portion of the estate
at the free disposal of the testator, provided that in no case shall the total legitime of such
illegitimate children exceed that free portion, and that the legitime of the surviving spouse
must first be fully satisfied.1208
Illegitimate children who may survive with legitimate parents or ascendants of the
deceased shall be entitled to one-fourth of the hereditary estate to be taken from the portion
at the free disposal of the testator.1209
When the widow or widower survives with legitimate children or descendants, and
acknowledged natural children, or natural children by legal fiction, such surviving spouse
shall be entitled to a portion equal to the legitime of each of the legitimate children which
must be taken from that part of the estate which the testator can freely dispose of.1210
If the widow or widower survives with legitimate children or descendants, and with
illegitimate children other than acknowledged natural, or natural children by legal fiction, the
share of the surviving spouse shall be the same as that provided in the preceding article.1211
When the widow or widower survives with legitimate parents or ascendants and with
illegitimate children, such surviving spouse shall be entitled to one-eighth of the hereditary
estate of the deceased which must be taken from the free portion, and the illegitimate
children shall be entitled to one-fourth of the estate which shall be taken also from the
disposable portion. The testator may freely dispose of the remaining one-eighth of the
estate.1212
If the only survivor is the widow or widower, she or he shall be entitled to one-half
of the hereditary estate of the deceased spouse, and the testator may freely dispose of the
other half.
If the marriage between the surviving spouse and the testator was solemnized in
articulo mortis, and the testator died within three months from the time of the marriage, the
legitime of the surviving spouse as the sole heir shall be one-third of the hereditary estate,
except when they have been living as husband and wife for more than five years. In the latter
case, the legitime of the surviving spouse shall be that specified in the preceding
paragraph.1213
When the testator dies leaving illegitimate children and no other compulsory heirs,
such illegitimate children shall have a right to one-half of the hereditary estate of the
deceased.
1208
Art. 895
1209
Art. 896
1210
Art. 897
1211
Art. 898
1212
Art. 899
1213
Art. 900
276
The other half shall be at the free disposal of the testator.1214
The rights of illegitimate children set forth in the preceding articles are transmitted
upon their death to their descendants, whether legitimate or illegitimate.1215
The legitime of the parents who have an illegitimate child, when such child leaves
neither legitimate descendants, nor a surviving spouse, nor illegitimate children, is one-half
of the hereditary estate of such illegitimate child. If only legitimate or illegitimate children are
left, the parents are not entitled to any legitime whatsoever. If only the widow or widower
survives with parents of the illegitimate child, the legitime of the parents is one-fourth of the
hereditary estate of the child, and that of the surviving spouse also one-fourth of the
estate.1216
Legitimate of the
children share of @
Illegitimate legit child
children
1214
Art. 901
1215
Art. 902
1216
Art. 903
277
children
Legitimate
parents alone
Legitimate
parents
Illegitimate
children
Legitimate
parents and
Surviving spouse
Legitimate 1/8
parents
Surviving spouse
Illegitimate
children
Illegitimate (divided
children alone by no. of
children)
Illegitimate 1/3 1/3 (divided
children by no. of
Surviving spouse children)
Surviving spouse or 1/3 if
alone marriage in
articulo mortis
Illegitimate
parents alone
Illegitimate
parents
Surviving spouse
The testator cannot deprive his compulsory heirs of their legitime, except in cases
expressly specified by law.
Neither can he impose upon the same any burden, encumbrance, condition, or
substitution of any kind whatsoever.1217
1217
Art. 904
1218
Art. 905
278
Any compulsory heir to whom the testator has left by any title less than the legitime
belonging to him may demand that the same be fully satisfied.1219
To determine the legitime, the value of the property left at the death of the testator
shall be considered, deducting all debts and charges, which shall not include those imposed
in the will.
To the net value of the hereditary estate, shall be added the value of all donations by
the testator that are subject to collation, at the time he made them.1221
Donations made to strangers shall be charged to that part of the estate of which the
testator could have disposed by his last will.
Insofar as they may be inofficious or may exceed the disposable portion, they shall
be reduced according to the rules.1222
Donations which an illegitimate child may have received during the lifetime of his
father or mother, shall be charged to his legitime.
Should they exceed the portion that can be freely disposed of, they shall be reduced
in the manner prescribed.1223
After the legitime has been determined in accordance with the three preceding
articles, the reduction shall be made as follows:
(1) Donations shall be respected as long as the legitime can be covered, reducing or
annulling, if necessary, the devises or legacies made in the will;
(2) The reduction of the devises or legacies shall be pro rata, without any distinction
whatever.
If the testator has directed that a certain devise or legacy be paid in preference to
others, it shall not suffer any reduction until the latter have been applied in full to the
payment of the legitime.
1219
Art. 906
1220
Art. 907
1221
Art. 908
1222
Art. 909
1223
Art. 910
279
(3) If the devise or legacy consists of a usufruct or life annuity, whose value may be
considered greater than that of the disposable portion, the compulsory heirs may choose
between complying with the testamentary provision and delivering to the devisee or legatee
the part of the inheritance of which the testator could freely dispose.1224
If the devise subject to reduction should consist of real property, which cannot be
conveniently divided, it shall go to the devisee if the reduction does not absorb one-half of
its value; and in a contrary case, to the compulsory heirs; but the former and the latter shall
reimburse each other in cash for what respectively belongs to them.
The devisee who is entitled to a legitime may retain the entire property, provided its
value does not exceed that of the disposable portion and of the share pertaining to him as
legitime.1225
If the heirs or devisees do not choose to avail themselves of the right granted by the
preceding article, any heir or devisee who did not have such right may exercise it; should the
latter not make use of it, the property shall be sold at public auction at the instance of any
one of the interested parties.1226
The testator may devise and bequeath the free portion as he may deem fit.1227
3. Reserva Troncal1228
The reservation by virtue of which an ascendant who inherits from his descendant
any property which the latter may have acquired by gratuitous title from another ascendant,
or a brother or sister, is obliged to reserve such property as he may have acquired by
operation of law for the benefit of relatives who are within the third degree and who belong
to the line from which said property came.1229
1224
Art. 911
1225
Art. 912
1226
Art. 913
1227
Art. 914
1228
Requisites
1) that the property was acquired by a descendant from an ascendant or from a brother or sister by
gratuitous title
2) that said descendant died without an issue
3) that the property is inherited by another ascendant by operation of law
4) that there are relatives within the 3rd degree belonging to the line from which said property came
1229
Art. 891
It constitutes as an exception to both the system of legitime and the order of intestate succession.
280
4. Disinheritance1230
It is the act by which the testator, for just cause, deprives a compulsory heir of his
right to the legitime.
(1) A child or descendant has been found guilty of an attempt against the life of the
testator, his or her spouse, descendants, or ascendants;
(2) A child or descendant 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;
(3) A child or descendant has been convicted of adultery or concubinage with the
spouse of the testator;
(5) Refusal without justifiable cause to support the parent or ascendant who
disinherits such child or descendant;
(8) Conviction of a crime which carries with it the penalty of civil interdiction.1231
1230
Requisites for a valid disinheritance:
1) Heir disinherited must be designated by name or in such a manner as to leave no room for doubt as
to who is intended
2) It must be for a cause designated by law
3) It must be made in valid will
4) It must be made expressly, stating the cause in the will itself
5) The cause must be certain and true, and must be proved by the interested heir if the person
disinherited should deny it
6) It must unconditional
7) It must be total
1231
Art. 919
281
Summary of causes of disinheritance:
1 Guilty/convicted of * * * *
attempt against life
of testator/spouse/
ascendant/descenda
nt
2 Accused * * * *
testator/decedent of
crime punishable by
imprisonment of
more than 6 years,
found groundless,
false
3 Causes * * * *
testator/decedent to
make will or change
one by fraud,
violence,
intimidation, or
undue influence
4 Unjustified refusal * * *
to support testator
5 Convicted of * * *
adultery or
concubinage with
spouse of
testator/decedent
6 Maltreatment of *
282
testator by word and
deed
7 Leading a *
dishonorable or
disgraceful life
8 Conviction of crime *
which carries
penalty of civil
interdiction
9 Abandonment of * *
children or inducing
children to live
corrupt and immoral
life or attempted
against virtue
10 Loss of parental * *
authority
11 Attempt by one *
parent against life of
the other unless
there is
reconciliation
between parents
13 Failure to report *
violent death of
decedent within one
month, unless
authorities have
already taken action
283
14 Force, violence, *
intimidation or
undue influence to
prevent another
from making a will
or revoking one
already made or who
supplants or alters
the latters will
15 Falsifies or forges a *
supposed will of the
decedent
(i) Reconciliation
A subsequent reconciliation between the offender and the offended person deprives
the latter of the right to disinherit, and renders ineffectual any disinheritance that may have
been made.1232
The children and descendants of the person disinherited shall take his or her place
and shall preserve the rights of compulsory heirs with respect to the legitime; but the
disinherited parent shall not have the usufruct or administration of the property which
constitutes the legitime.1233
Shall annul the institution of heirs insofar as it may prejudice the person disinherited;
but the devises and legacies and other testamentary dispositions shall be valid to such extent
as will not impair the legitime.1234
All things and rights which are within the commerce of man maybe bequeathed or
devised.1235
A testator may charge with legacies and devises not only his compulsory heirs but
also the legatees and devisees.
1232
Art. 922
1233
Art. 923
1234
Art. 918
1235
Art. 924
284
The latter shall be liable for the charge only to the extent of the value of the legacy or
the devise received by them. The compulsory heirs shall not be liable for the charge beyond
the amount of the free portion given them.1236
When the testator charges one of the heirs with a legacy or devise, he alone shall be
bound.
Should he not charge anyone in particular, all shall be liable in the same proportion
in which they may inherit.1237
If two or more heirs take possession of the estate, they shall be solidarily liable for
the loss or destruction of a thing devised or bequeathed, even though only one of them
should have been negligent.1238
The heir who is bound to deliver the legacy or devise shall be liable in case of
eviction, if the thing is indeterminate and is indicated only by its kind.1239
If the testator, heir, or legatee owns only a part of, or an interest in the thing
bequeathed, the legacy or devise shall be understood limited to such part or interest, unless
the testator expressly declares that he gives the thing in its entirety.1240
The legacy or devise of a thing belonging to another person is void, if the testator
erroneously believed that the thing pertained to him. But if the thing bequeathed, though not
belonging to the testator when he made the will, afterwards becomes his, by whatever title,
the disposition shall take effect.1241
If the testator orders that a thing belonging to another be acquired in order that it be
given to a legatee or devisee, the heir upon whom the obligation is imposed or the estate
must acquire it and give the same to the legatee or devisee; but if the owner of the thing
refuses to alienate the same, or demands an excessive price therefor, the heir or the estate
shall only be obliged to give the just value of the thing.1242
The legacy or devise of a thing which at the time of the execution of the will already
belonged to the legatee or devisee shall be ineffective, even though another person may have
some interest therein.
If the testator expressly orders that the thing be freed from such interest or
encumbrance, the legacy or devise shall be valid to that extent.1243
1236
Art. 925
1237
Art. 926
1238
Art. 927
1239
Art. 928
1240
Art. 929
1241
Art. 930
1242
Art. 931
1243
Art. 932
285
If the thing bequeathed belonged to the legatee or devisee at the time of the
execution of the will, the legacy or devise shall be without effect, even though it may have
subsequently alienated by him.
If the legatee or devisee acquires it gratuitously after such time, he can claim nothing
by virtue of the legacy or devise; but if it has been acquired by onerous title he can demand
reimbursement from the heir or the estate.1244
The same rule applies when the thing is pledged or mortgaged after the execution of
the will.
Any other charge, perpetual or temporary, with which the thing bequeathed is
burdened, passes with it to the legatee or devisee.1245
The legacy of a credit against a third person or of the remission or release of a debt
of the legatee shall be effective only as regards that part of the credit or debt existing at the
time of the death of the testator.
In the first case, the estate shall comply with the legacy by assigning to the legatee all
rights of action it may have against the debtor. In the second case, by giving the legatee an
acquittance, should he request one.
In both cases, the legacy shall comprise all interests on the credit or debt which may
be due the testator at the time of his death.1246
The legacy referred to shall lapse if the testator, after having made it, should bring an
action against the debtor for the payment of his debt, even if such payment should not have
been effected at the time of his death.
The legacy to the debtor of the thing pledged by him is understood to discharge only
the right of pledge.1247
A generic legacy of release or remission of debts comprises those existing at the time
of the execution of the will, but not subsequent ones.1248
A legacy or devise made to a creditor shall not be applied to his credit, unless the
testator so expressly declares.
1244
Art. 933
1245
Art. 934
1246
Art. 935
1247
Art. 936
1248
Art. 937
286
In the latter case, the creditor shall have the right to collect the excess, if any, of the
credit or of the legacy or devise.1249
If the testator orders the payment of what he believes he owes but does not in fact
owe, the disposition shall be considered as not written. If as regards a specified debt more
than the amount thereof is ordered paid, the excess is not due, unless a contrary intention
appears.
If the heir, legatee or devisee, who may have been given the choice, dies before
making it, this right shall pass to the respective heirs.
In the alternative legacies or devises, except as herein provided, the provisions of this
Code regulating obligations of the same kind shall be observed, save such modifications as
may appear from the intention expressed by the testator.1251
A legacy of generic personal property shall be valid even if there be no things of the
same kind in the estate.
The right of choice shall belong to the executor or administrator who shall comply
with the legacy by the delivery of a thing which is neither of inferior nor of superior
quality.1252
Whenever the testator expressly leaves the right of choice to the heir, or to the
legatee or devisee, the former may give or the latter may choose whichever he may prefer.1253
If the heir, legatee or devisee cannot make the choice, in case it has been granted
him, his right shall pass to his heirs; but a choice once made shall be irrevocable. 1254
1249
Art. 938
1250
Art. 939
1251
Art. 940
1252
Art. 941
1253
Art. 942
1254
Art. 943
287
A legacy for education lasts until the legatee is of age, or beyond the age of majority
in order that the legatee may finish some professional, vocational or general course, provided
he pursues his course diligently.
A legacy for support lasts during the lifetime of the legatee, if the testator has not
otherwise provided.
If the testator has not fixed the amount of such legacies, it shall be fixed in
accordance with the social standing and the circumstances of the legatee and the value of the
estate.
If the testator or during his lifetime used to give the legatee a certain sum of money
or other things by way of support, the same amount shall be deemed bequeathed, unless it
be markedly disproportionate to the value of the estate.1255
If the thing bequeathed should be subject to a usufruct, the legatee or devisee shall
respect such right until it is legally extinguished.1257
The legatee or devisee acquires a right to the pure and simple legacies or devises
from the death of the testator, and transmits it to his heirs.1258
If the legacy or devise is of a specific and determinate thing pertaining to the testator,
the legatee or devisee acquires the ownership thereof upon the death of the testator, as well
as any growing fruits, or unborn offspring of animals, or uncollected income; but not the
income which was due and unpaid before the latter's death.
From the moment of the testator's death, the thing bequeathed shall be at the risk of
the legatee or devisee, who shall, therefore, bear its loss or deterioration, and shall be
benefited by its increase or improvement, without prejudice to the responsibility of the
executor or administrator.1259
If the bequest should not be of a specific and determinate thing, but is generic or of
quantity, its fruits and interests from the time of the death of the testator shall pertain to the
legatee or devisee if the testator has expressly so ordered.1260
1255
Art. 944
1256
Art. 945
1257
Art. 946
1258
Art. 947
1259
Art. 948
1260
Art. 949
288
If the estate should not be sufficient to cover all the legacies or devises, their
payment shall be made in the following order:
The thing bequeathed shall be delivered with all its accessories and accessories and in
the condition in which it may be upon the death of the testator.1262
The heir, charged with a legacy or devise, or the executor or administrator of the
estate, must deliver the very thing bequeathed if he is able to do so and cannot discharge this
obligation by paying its value.
Legacies of money must be paid in cash, even though the heir or the estate may not
have any.
The expenses necessary for the delivery of the thing bequeathed shall be for the
account of the heir or the estate, but without prejudice to the legitime.1263
The legatee or devisee cannot take possession of the thing bequeathed upon his own
authority, but shall request its delivery and possession of the heir charged with the legacy or
devise, or of the executor or administrator of the estate should he be authorized by the court
to deliver it.1264
The legatee or devisee cannot accept a part of the legacy or devise and repudiate the
other, if the latter be onerous.
Should he die before having accepted the legacy or devise, leaving several heirs, some
of the latter may accept and the others may repudiate the share respectively belonging to
them in the legacy or devise.1265
The legatee or devisee of two legacies or devises, one of which is onerous, cannot
renounce the onerous one and accept the other. If both are onerous or gratuitous, he shall
1261
Art. 950
1262
Art. 951
1263
Art. 952
1264
Art. 953
1265
Art. 954
289
be free to accept or renounce both, or to renounce either. But if the testator intended that
the two legacies or devises should be inseparable from each other, the legatee or devisee
must either accept or renounce both.
Any compulsory heir who is at the same time a legatee or devisee may waive the
inheritance and accept the legacy or devise, or renounce the latter and accept the former, or
waive or accept both.1266
If the legatee or devisee cannot or is unwilling to accept the legacy or devise, or if the
legacy or devise for any reason should become ineffective, it shall be merged into the mass
of the estate, except in cases of substitution and of the right of accretion.1267
(1) If the testator transforms the thing bequeathed in such a manner that it does not
retain either the form or the denomination it had;
(2) If the testator by any title or for any cause alienates the thing bequeathed or any
part thereof, it being understood that in the latter case the legacy or devise shall be without
effect only with respect to the part thus alienated. If after the alienation the thing should
again belong to the testator, even if it be by reason of nullity of the contract, the legacy or
devise shall not thereafter be valid, unless the reacquisition shall have been effected by virtue
of the exercise of the right of repurchase;
(3) If the thing bequeathed is totally lost during the lifetime of the testator, or after
his death without the heir's fault. Nevertheless, the person obliged to pay the legacy or
devise shall be liable for eviction if the thing bequeathed should not have been determinate
as to its kind, in accordance with the provisions of Article 928.1268
1266
Art. 955
1267
Art. 956
1268
Art. 957
1269
Art. 958
1270
Art. 959
290
III. Legal or Intestate Succession
A. General Provisions
3. If a person dies with a will which has subsequently lost its validity
4. When the will does not institute an heir to, or dispose of all the property
belonging to the testator;1272
5. If the suspensive condition attached to the institution of the heir does not happen
or is not fulfilled
7. If the heir repudiates the inheritance, there being no substitution, and no right of
accretion takes place
8. When the heir instituted is incapable of succeeding, except in cases provided in the
Code.1273
In default of testamentary heirs, the law vests the inheritance in the legitimate and
illegitimate relatives of the deceased, in the surviving spouse, and in the State.1274
In every inheritance, the relative nearest in degree excludes the more distant ones,
saving the right of representation when it properly takes place.
Relatives in the same degree shall inherit in equal shares, subject to the provisions of
Article 10061275 with respect to relatives of the full and half blood, and of Article 987, par.
2,1276 concerning division between the paternal and maternal lines.1277
1271
Fundamental underlying principles in legal or intestate succession:
1. Rule of Proximity the relative nearest in degree excludes the farther one
2. Rule of Equal Division the relatives who are in the same degree shall inherit in equal shares
1272
Legal succession shall take place only with respect to the property of which the testator has not
disposed
1273
Art. 960
1274
Art. 961
1275
Should brother and sisters of the full blood survive together with brothers and sisters of the half
blood, the former shall be entitled to a share double that of the latter.
1276
Should there be more than one of equal degree belonging to the same line they shall divide the
inheritance per capita; should they be of different lines but of equal degree, one-half shall go to the
paternal and the other half to the maternal ascendants. In each line the division shall be made per capita.
1277
Art. 962
291
1. Relationship
A direct line is that constituted by the series of degrees among ascendants and
descendants.
A collateral line is that constituted by the series of degrees among persons who are
not ascendants and descendants, but who come from a common ancestor.1279
The former unites the head of the family with those who descend from him.
In the line, as many degrees are counted as there are generations or persons,
excluding the progenitor.
In the direct line, ascent is made to the common ancestor. Thus, the child is one
degree removed from the parent, two from the grandfather, and three from the great-
grandparent.
In the collateral line, ascent is made to the common ancestor and then descent is
made to the person with whom the computation is to be made. Thus, a person is two
degrees removed from his brother, three from his uncle, who is the brother of his father,
four from his first cousin, and so forth.1281
Full blood relationship is that existing between persons who have the same father
and the same mother.
Half-blood relationship is that existing between persons who have the same father,
but not the same mother, or the same mother, but not the same father.1282
If there are several relatives of the same degree, and one or some of them are
unwilling or incapacitated to succeed, his portion shall accrue to the others of the same
degree, save the right of representation when it should take place.1283
1278
Art. 963
1279
Art. 964
1280
Art. 965
1281
Art. 966
1282
Art. 967
1283
Art. 968
292
If the inheritance should be repudiated by the nearest relative, should there be one
only, or by all the nearest relatives called by law to succeed, should there be several, those of
the following degree shall inherit in their own right and cannot represent the person or
persons repudiating the inheritance.1284
2. Right of Representation
The representative is called to the succession by the law and not by the person
represented. The representative does not succeed the person represented but the one whom
the person represented would have succeeded.1286
The right of representation takes place in the direct descending line, but never in the
ascending.
In the collateral line, it takes place only in favor of the children of brothers or sisters,
whether they be of the full or half blood.1287
In order that representation may take place, it is necessary that the representative
himself be capable of succeeding the decedent.1288
When children of one or more brothers or sisters of the deceased survive, they shall
inherit from the latter by representation, if they survive with their uncles or aunts. But if they
alone survive, they shall inherit in equal portions.1290
1284
Art. 969
1285
Art. 970
1286
Art. 971
1287
Art. 972
1288
Art. 973
1289
Art. 974
1290
Art. 975
1291
Art. 976
1292
Art. 977
293
B. Order of Intestate Succession
Legitimate children and their descendants succeed the parents and other ascendants,
without distinction as to sex or age, and even if they should come from different marriages.
An adopted child succeeds to the property of the adopting parents in the same
manner as a legitimate child.1294
The children of the deceased shall always inherit from him in their own right,
dividing the inheritance in equal shares.1295
Should children of the deceased and descendants of other children who are dead,
survive, the former shall inherit in their own right, and the latter by right of
representation.1296
The grandchildren and other descendants shall inherit by right of representation, and
if any one of them should have died, leaving several heirs, the portion pertaining to him shall
be divided among the latter in equal portions.1297
If illegitimate children survive with legitimate children, the shares of the former shall
be in the proportions prescribed by article 895.1298
In default of legitimate children and descendants of the deceased, his parents and
ascendants shall inherit from him, to the exclusion of collateral relatives.1300
Should one only of them survive, he or she shall succeed to the entire estate of the
1301
child.
In default of the father and mother, the ascendants nearest in degree shall inherit.
1293
Art. 978
1294
Art. 979
1295
Art. 980
1296
Art. 981
1297
Art. 982
1298
Art. 983
1299
Art. 984
1300
Art. 985
1301
Art. 986
294
Should there be more than one of equal degree belonging to the same line they shall
divide the inheritance per capita; should they be of different lines but of equal degree, one-
half shall go to the paternal and the other half to the maternal ascendants. In each line the
division shall be made per capita.1302
If, together with illegitimate children, there should survive descendants of another
illegitimate child who is dead, the former shall succeed in their own right and the latter by
right of representation.1304
The hereditary rights granted by the two preceding articles to illegitimate children
shall be transmitted upon their death to their descendants, who shall inherit by right of
representation from their deceased grandparent.1305
If legitimate ascendants are left, the illegitimate children shall divide the inheritance
with them, taking one-half of the estate, whatever be the number of the ascendants or of the
illegitimate children.1306
An illegitimate child has no right to inherit ab intestato from the legitimate children
and relatives of his father or mother; nor shall such children or relatives inherit in the same
manner from the illegitimate child.1307
If an illegitimate child should die without issue, either legitimate or illegitimate, his
father or mother shall succeed to his entire estate; and if the child's filiation is duly proved as
to both parents, who are both living, they shall inherit from him share and share alike.1308
If the widow or widower should survive with brothers and sisters, nephews and
nieces, she or he shall inherit one-half of the estate, and the latter the other half.1309
1302
Art. 987
1303
Art. 988
1304
Art. 989
1305
Art. 990
1306
Art. 991
1307
Art. 992
1308
Art. 993
1309
Art. 994
1310
Art. 995
295
If a widow or widower and legitimate children or descendants are left, the surviving
spouse has in the succession the same share as that of each of the children.1311
When the widow or widower survives with legitimate parents or ascendants, the
surviving spouse shall be entitled to one-half of the estate, and the legitimate parents or
ascendants to the other half.1312
When the widow or widower survives with legitimate children or their descendants
and illegitimate children or their descendants, whether legitimate or illegitimate, such widow
or widower shall be entitled to the same share as that of a legitimate child.1314
If legitimate ascendants, the surviving spouse, and illegitimate children are left, the
ascendants shall be entitled to one-half of the inheritance, and the other half shall be divided
between the surviving spouse and the illegitimate children so that such widow or widower
shall have one-fourth of the estate, and the illegitimate children the other fourth.1315
Should brothers and sisters or their children survive with the widow or widower, the
latter shall be entitled to one-half of the inheritance and the brothers and sisters or their
children to the other half.1316
In case of a legal separation, if the surviving spouse gave cause for the separation, he
or she shall not have any of the rights granted in the preceding articles.1317
Should the only survivors be brothers and sisters of the full blood, they shall inherit
in equal shares.1319
Should brothers and sisters survive together with nephews and nieces, who are the
children of the descendant's brothers and sisters of the full blood, the former shall inherit
per capita, and the latter per stirpes.1320
1311
Art. 996
1312
Art. 997
1313
Art. 998
1314
Art. 999
1315
Art. 1000
1316
Art. 1001
1317
Art. 1002
1318
Art. 1003
1319
Art. 1004
1320
Art. 1005
296
Should brother and sisters of the full blood survive together with brothers and sisters
of the half blood, the former shall be entitled to a share double that of the latter.1321
In case brothers and sisters of the half blood, some on the father's andsome on the
mother's side, are the only survivors, all shall inherit in equal shares without distinction as to
the origin of the property.1322
Children of brothers and sisters of the half-blood shall succeed per capita or per
stirpes, in accordance with the rules laid down for brothers and sisters of the full blood.1323
Should there be neither brothers nor sisters nor children of brothers or sisters, the
other collateral relatives shall succeed to the estate.
The latter shall succeed without distinction of lines or preference among them by
reason of relationship by the whole blood.1324
The right to inherit ab intestato shall not extend beyond the fifth degree of
relationship in the collateral line.1325
In default of persons entitled to succeed, the State shall inherit the whole estate.1326
In order that the State may take possession of the property mentioned in the
preceding article, the pertinent provisions of the Rules of Court must be observed.1327
After the payment of debts and charges, the personal property shall be assigned to
the municipality or city where the deceased last resided in the Philippines, and the real estate
to the municipalities or cities, respectively, in which the same is situated.
If the deceased never resided in the Philippines, the whole estate shall be assigned to
the respective municipalities or cities where the same is located.
Such estate shall be for the benefit of public schools, and public charitable
institutions and centers, in such municipalities or cities. The court shall distribute the estate
as the respective needs of each beneficiary may warrant.
The court, at the instance of an interested party, or on its own motion, may order the
establishment of a permanent trust, so that only the income from the property shall be
used.1328
1321
Art. 1006
1322
Art. 1007
1323
Art. 1008
1324
Art. 1009
1325
Art. 1010
1326
Art. 1011
1327
Art. 1012
1328
Art. 1013
297
If a person legally entitled to the estate of the deceased appears and files a claim
hereto with the court within five (5) years from the date the property was delivered to the
State, such person shall be entitled to the possession of the same, or if sold, the municipality
or city shall be accountable to him for such part of the proceeds as may not have been
lawfully spent.1329
7 State
1329
Art. 1014
298
and Descendants collaterals and state Legitimate children
and legitimate
parents
Legitimate parents Collaterals and state Legitimate children Illegitimate children
and legitimate and surviving spouse
ascendants
Total 1
299
Surviving spouse
Total 1
300
5. One legitimate child, illegitimate child, and surviving spouse
301
7. Legitimate parents alone
Total 1
Surviving spouse
Total 1
Illegitimate children
302
12. Illegitimate children and surviving spouse
Total 1
Surviving spouse
Total 1
303
17. Surviving spouse, siblings, nephews and nieces
Siblings, nephews,
nieces
Total 1
304
IV. Provisions Common to Testate and Intestate Succession
A. Right of Accretion
Accretion is a right by virtue of which, when two or more persons are called to the
same inheritance, devise or legacy, the part assigned to the one who renounces or cannot
receive his share, or who died before the testator, is added or incorporated to that of his co-
heirs, co-devisees, or co-legatees.1330
In order that the right of accretion may take place in a testamentary succession, it
shall be necessary:
(1) That two or more persons be called to the same inheritance, or to the same
portion thereof, pro indiviso; and
(2) That one of the persons thus called die before the testator, or renounce the
inheritance, or be incapacitated to receive it.1331
(1) The priest who heard the confession of the testator during his last illness, or the
minister of the gospel who extended spiritual aid to him during the same period;
(2) The relatives of such priest or minister of the gospel within the fourth degree, the
church, order, chapter, community, organization, or institution to which such priest or
minister may belong;
(3) A guardian with respect to testamentary dispositions given by a ward in his favor
before the final accounts of the guardianship have been approved, even if the testator should
die after the approval thereof; nevertheless, any provision made by the ward in favor of the
guardian when the latter is his ascendant, descendant, brother, sister, or spouse, shall be
valid;
(4) Any attesting witness to the execution of a will, the spouse, parents, or children,
or any one claiming under such witness, spouse, parents, or children;
(5) Any physician, surgeon, nurse, health officer or druggist who took care of the
testator during his last illness;
305
The following donations shall be void:
(1) Those made between persons who were guilty of adultery or concubinage at the
time of the donation;
(2) Those made between persons found guilty of the same criminal offense, in
consideration thereof;
(3) Those made to a public officer or his wife, descendants and ascendants, by reason
of his office.
In the case referred to in No. 1, the action for declaration of nullity may be brought
by the spouse of the donor or donee; and the guilt of the donor and donee may be proved
by preponderance of evidence in the same action.1333
(1) Parents who have abandoned their children or induced their daughters to lead a
corrupt or immoral life, or attempted against their virtue;
(2) Any person who has been convicted of an attempt against the life of the testator,
his or her spouse, descendants, or ascendants;
(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;
(4) Any heir of full age who, having knowledge of the violent death of the testator,
should fail to report it to an officer of the law within a 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;
(5) Any person convicted of adultery or concubinage with the spouse of the testator;
(6) Any person who by fraud, violence, intimidation, or undue influence should
cause the testator to make a will or to change one already made;
(7) Any person who by the same means prevents another from making a will, or
from revoking one already made, or who supplants, conceals, or alters the latter's will;
(8) Any person who falsifies or forges a supposed will of the decedent.1334
1333
Art. 739
1334
Art. 1032
306
2. Unworthiness vs. Disinheritance
Unworthiness Disinheritance
The effects of the acceptance or repudiation shall always retroact to the moment of
the death of the decedent.1337
Any person having the free disposal of his property may accept or repudiate an
inheritance.
The right to accept an inheritance left to the poor shall belong to the persons
designated by the testator to determine the beneficiaries and distribute the property, or in
their default, to those mentioned in Article 1030.1339
Public official establishments can neither accept nor repudiate an inheritance without
the approval of the government.1341
A married woman of age may repudiate an inheritance without the consent of her
husband.1342
1335
supra
1336
Art. 1041; see Reference for Art. 1030
1337
Art. 1042
1338
Art. 1043
1339
Art. 1044
1340
Art. 1045
1341
Art. 1046
307
Deaf-mutes who can read and write may accept or repudiate the inheritance
personally or through an agent. Should they not be able to read and write, the inheritance
shall be accepted by their guardians. These guardians may repudiate the same with judicial
approval.1343
A tacit acceptance is one resulting from acts by which the intention to accept is
necessarily implied, or which one would have no right to do except in the capacity of an heir.
(1) If the heirs sells, donates, or assigns his right to a stranger, or to his co-heirs, or
to any of them;
(2) If the heir renounces the same, even though gratuitously, for the benefit of one
or more of his co-heirs;
(3) If he renounces it for a price in favor of all his co-heirs indiscriminately; but if
this renunciation should be gratuitous, and the co-heirs in whose favor it is made are those
upon whom the portion renounced should devolve by virtue of accretion, the inheritance
shall not be deemed as accepted.1345
If the heir repudiates the inheritance to the prejudice of his own creditors, the latter
may petition the court to authorize them to accept it in the name of the heir.1347
The acceptance shall benefit the creditors only to an extent sufficient to cover the
amount of their credits. The excess, should there be any, shall in no case pertain to the
renouncer, but shall be adjudicated to the persons to whom it may belong.
1342
Art. 1047
1343
Art. 1048
1344
Art. 1049
1345
Art. 1050
1346
Art. 1051
1347
Art. 1052
308
If the heir should die without having accepted or repudiated the inheritance his right
shall be transmitted to his heirs.1348
Should there be several heirs called to the inheritance, some of them may accept and
the others may repudiate it.1349
If a person, who is called to the same inheritance as an heir by will and ab intestato,
repudiates the inheritance in his capacity as a testamentary heir, he is understood to have
repudiated it in both capacities.
Within thirty days after the court has issued an order for the distribution of the estate
in accordance with the Rules of Court, the heirs, devisees and legatees shall signify to the
court having jurisdiction whether they accept or repudiate the inheritance.
If they do not do so within that time, they are deemed to have accepted the
inheritance.1352
D. Collation
To determine the legitime, the value of the property left at the death of the testator
shall be considered, deducting all debts and charges, which shall not include those imposed
in the will.
To the net value of the hereditary estate, shall be added the value of all donations by
the testator that are subject to collation, at the time he made them.1353
Donations made to strangers shall be charged to that part of the estate of which the
testator could have disposed by his last will.
Insofar as they may be inofficious or may exceed the disposable portion, they shall
be reduced according to the rules established by this Code.1354
1348
Art. 1053
1349
Art. 1054
1350
Art. 1055
1351
Art. 1056
1352
Art. 1057
1353
Art. 908
1354
Art. 909
309
Donations which an illegitimate child may have received during the lifetime of his
father or mother, shall be charged to his legitime.
Should they exceed the portion that can be freely disposed of, they shall be
reduced.1355
Every compulsory heir, who succeeds with other compulsory heirs, must bring into
the mass of the estate any property or right which he may have received from the decedent,
during the lifetime of the latter, by way of donation, or any other gratuitous title, in order
that it may be computed in the determination of the legitime of each heir, and in the account
of the partition.1356
Collation shall not take place among compulsory heirs if the donor should have so
expressly provided, or if the donee should repudiate the inheritance, unless the donation
should be reduced as inofficious.1357
1. Partition
The separation, division and assignment of a thing held in common among those to
whom it may belong. The thing itself may be divided, or its value.1358
Should a person make partition of his estate by an act inter vivos, or by will, such
partition shall be respected, insofar as it does not prejudice the legitime of the compulsory
heirs.
A parent who, in the interest of his or her family, desires to keep any agricultural,
industrial, or manufacturing enterprise intact, may avail himself of the right granted him in
this article, by ordering that the legitime of the other children to whom the property is not
assigned, be paid in cash.1359
It is one that merely allocates specific items or pieces of property on the basis of the
pro-indiviso shares fixed by law or given under the will to heirs or successors.
1355
Art. 910
1356
Art. 1061
1357
Art. 1062
1358
Art. 1079
It includes every act which is intended to put an end to indivision among co-heirs, and legatees or
devisees, although it should purport to be a sale, exchange, compromise, or any other transaction. It is
not subject to any form.
1359
Art. 1080
310
3. Effects of Partition
A partition legally made confers upon each heir the exclusive ownership of the
property adjudicated to him.1360
The action for rescission on account of lesion shall prescribe after four years from
the time the partition was made.1362
A partition made with preterition of any of the compulsory heirs shall not be
rescinded, unless it be proved that there was bad faith or fraud on the part of the other
persons interested; but the latter shall be proportionately obliged to pay to the person
omitted the share which belongs to him.1363
A partition which includes a person believed to be an heir, but who is not, shall be
void only with respect to such person.1364
1360
Art. 1091
1361
Art. 1097
1362
Art. 1100
1363
Art. 1104
1364
Art. 1105
311
PARTNERSHIP
I. Contract of partnership1365
A. Definition
Two or more persons may also form a partnership for the exercise of a profession.
B. Elements
1. Consensual;
2. Contribution of money, property or industry to a common fund;
3. Subject must be a lawful one;
4. An intention of dividing the profit among the partners;
5. A desire to formulate an active union; 1366
6. A new personality, that of the firm must arise, distinct from the separate
personality of each of the members.
1. General rule:
Persons who are not partners as to each other are not partners as to third
persons.
Exception:
Partnership by estoppel
1365
A partnership has a juridical personality which is separate and distinct from that of the partners.
A partnership may sue and be sued in its name or by its duly authorized representatives. A managing
partner of the partnership may execute all acts of administration including the right to sue debtors of the
partnership in the case of their failure to pay their obligation when it becomes demandable. (Tai Tong
Chuache & Co. vs. Insurance Commission 158 SCRA 336 [1988])
1366
affectio societatis
1367
Art. 1769
312
3. Sharing of gross returns alone does not indicate a partnership, whether or not the
persons sharing them have a joint or common right or interest in any property from which
the returns are derived.
However, no such inference will be drawn if such profits were received in payment:
General rule:
Exceptions:
1. Where immovable property or real rights are contributed, the partnership contract
shall be void unless:
2. Where the contract is by its terms not to be performed within a year from the
making thereof, such partnership contract is covered by the statute of frauds and thus
requires a written agreement to be enforceable.
3. Where the contract of partnership has a capital of 3,000 pesos or more, in money
or property, it shall appear in a public instrument and must be recorded in the Office of the
1368
Art. 1771
1369
Art.1773
A partnership contract which states that the partnership is established to operate a fishpond is not
rendered void because no inventory of the fishpond was made (where it did not clearly appear in the
articles of partnership that the real property had been contributed by anyone of the partners). (Agad vs.
Mabolo and Mabolo Agad and Co., 23 SCRA 1223[1968])
313
Securities and Exchange Commission. However, a partnership has a juridical personality
even in case of failure to comply with this requirement.
E. Partnership term
Unlimited in the sense that no time limit is fixed by law; may be agreed upon.1370
The partners contribute all the property One which has for its object determinate
which actually belong to them to a common things, their use and fruits, or a specific
fund, with the intention of dividing the same undertaking, or the exercise of a profession
among themselves, as well as all the profits or vocation.
which they may acquire therewith.
1370
expressly or impliedly
1371
In a universal partnership of all present property, the property which belongs to each of the partners
at the time of the constitution of the partnership, becomes the common property of all the partners, as
well as the profits which they may acquire therewith.
A stipulation for the common enjoyment of any other profits may also be made; but the properties
which the partners may acquire subsequently by inheritance, legacy or donation cannot be included in
such stipulation, except the fruits thereof.
Where the articles of partnership do not specify the nature of the universal partnership, whether it is
one of present property or of profits only, it will be presumed that the parties intended merely a
partnership of profits.
Future properties cannot be contributed. Thus, property subsequently acquired by (1) inheritance, (2)
legacy or (3) donation cannot be included by stipulation except the fruits thereof
1372
Movable or immovable property which each of the partners may posses at the time of the celebration
of the contract shall continue to pertain exclusively to each, only the usufruct passing to the partnership.
Persons who are prohibited from giving each other any donation or advantage cannot enter into a
universal partnership. (Art. 739, Art. 87, Family Code)
Profits acquired by their partners through chance (i.e. lottery) without employment of any physical or
intellectual efforts are not included.
314
General partnership Limited partnership
Consist of general partners who are liable One formed by two or more persons having
pro rata and subsidiarily and sometimes as members one or more general partners
solidarily with their separate property for and one or more limited partners, the latter
partnership debts. not being personally liable for the obligations
of the partnership.
G. Partnership by estoppel1373
Contemplates a general business with some Formed for the execution of a single
degree of continuity transaction and is thus of temporary nature
It is hardly distinguishable from partnership, since their elements are similar, i.e.
community of interest in the business, sharing of profits and losses, and a mutual right of
control.
1373
Elements to establish liability as a partner on ground of estoppel:
1.Defendant represented himself as partner/represented by others as such and not denied/refuted by
defendant
2. Plaintiff relied on such representation
3. Statement of defendant not refuted
1374
Art 1825
It does not create a partnership as between the alleged partners. A contract, express or implied is
essential to the creation of partnership. The law considers them partners and the association as a
partnership insofar as it is favorable to third persons. However, partnership liability is created only in
favor of persons who on the faith of such representation given credit to the actual or apparent
partnership
1375
In Kilosbayan, Incorporated vs. Guingona, Jr. 232 SCRA 110 [1994], the court defined a joint venture as
an association of persons or companies jointly undertaking some commercial enterprise; generally all
contribute assets and share risks. Its requisites are:
a. A community of interest in the performance of the subject matter;
b. A right to direct and govern the policy in connection therewith;
c. Duty to share profits and losses.
315
I. Professional partnership
Partnerships formed by persons for the sole purpose of exercising their common
profession, no part of the income of which is derived from engaging in any trade or
business.
J. Management1376
A. When the manner of management has been provided for in the partnership
agreement
b. Extent of power
1376
Arts. 1800-1803
316
When two or more managing partners have been entrusted with the
management of partnership:
General rule: Each managing partner may execute all acts of administration
317
II. Rights and obligations of partnership
1377
Partnership bears the risk: when what is contributed is a fungible thing, thing which cant be kept
without deteriorating, if the thing was contributed to be sold, and contributions are appraised in the
inventory (Art. 1795, CC)
1378
3 obligations of the partnership:
1. refund disbursements with legal interest
2. answer for obligations contracted in good faith in the partnerships interest
3. answer for risks (Art. 1796, CC)
Partner = agent. Being a mere agent, he isnt personally liable as long as hes not at fault (Art. 1912,
CC) and acted within the scope of his authority. But unlike an ordinary agent, the paying partner doesnt
have the right of retention if he isnt paid.
1379
Every partnership shall operate under a firm name (Art. 1815, CC) to distinguish the partnership from
other entities & from the individual partners.
Non-members whose names were used: dont have the rights of a partner but are liable to 3rd
persons without notice as partners (Art. 1815, CC). They become partners by estoppel (PNB v. Lo).
Use of deceased partners name in law firm: permissible as long as its indicated in the firms
communications that the partner is deceased (Rule 3.02, CPR)
Other rules:
1. a person continuing the partnership after a dissolution uses the firm name/name of deceased
partner as part of the name: deceased partners individual property isnt liable for debts contracted (Art.
1840, CC)
2. the limited partners surname shall not appear in the firm name unless
a. its also the surname of a general partner
b. before the limited partner became such, the business had been carried on under a name in
which his surname appeared (Art. 1846, CC)
1380
Requisites to be admissible against the partnership:
1. it must be connected with partnership affairs
2. its within the scope of the partners authority (Art. 1820, CC) as may be just and equitable under
the circumstances according to capital contribution.
3. Purely industrial partner not liable for losses
Exception: when a partner makes admissions for himself only without purporting to act for the
partnership
318
j) bound by notice to partner1381
k) liable for wrongful act of partner1382
Rights:
1. Property rights
5. Right to true and full information of all things affecting the partnership
Obligations:
Admission by a former partner not admissible in evidence against the partnership. (Congco vs.
Trillana)
1381
Notice to the firm:
1. Notice to a partner while already a partner
2. Knowledge is acquired by a partner whos acting in a particular matter, WON a partner at the time
as long as he still remembers the partnership matter
3. The partner who acquired it has reason to believe that it be the subject of the business, and
couldve communicated it to the acting partner (Art. 1821, CC)
1382
Extent of liability for wrongful acts, omissions of a partner: firm is liable to the same extent as the
partner (Art. 1822, CC).
Misapplication of money/property resulting in losses: if loss is suffered by the 3rd person who
delivered the money/property, the partnership is solidarily liable with the misappropriating partner (Art.
1823, CC).
1383
The ten (10) year period to demand an accounting by a partner begins at the dissolution of the
partnership.
319
b) To answer for eviction in case the partnership is deprived of determinate
property contributed
c) To answer to the partnership for the fruits of the property the contribution
of which is delayed, from the date they should have been contributed to the
time of actual delivery
d) To preserve the property with the diligence of a good father of a family
pending delivery to the partnership
e) To indemnify the partners for any damages caused to it by the retention of
the same or by delay in its contribution.
b) To reimburse any amount he may have taken from the partnership coffers
and converted to his own personal use
Industrial partner- cannot engage in any business for himself unless the partnership
expressly permits him to do so. The other partners have the remedy of either excluding the
erring partner from the firm or of availing themselves of the benefits which he may have
obtained.1384
Capitalist partner- The prohibition extends only to any operation which is of the
same kind of business in which the partnership is engaged unless there is a stipulation to the
contrary.
1384
The prohibition is absolute and applies whether the industrial partner is to engage in the same
business in which the partnership is engaged or in any kind of business. It is clear that the reason for the
prohibition exists in both cases, which is to prevent any conflict of interest between the industrial partner
and the partnership and to insure faithful compliance by said partner with his prestation (Evangelista &
Co. vs. Abad Santos, 51 SCRA 416, 1973)
320
4. Obligation to Contribute Additional Capital
A partner who receives, in whole or in part, his share in the partnership, when the
others have not collected theirs, shall be obliged, if the debtor should thereafter become
insolvent, to bring to the partnership capital what he received even though he may have
given receipt for his share only.1385
Partners shall render on demand true and full information of all things affecting the
partnership to any partner or the legal representative of any deceased partner of any partner
under legal disability.
9. Obligation to account for any benefit and hold as trustee unauthorized personal
profits
Every partner must account to the partnership for any benefit, and hold as trustee
for it any profits derived by him without the consent of the other partners from any
transaction connected with the formation, conduct, liquidation of the partnership or form
any use by him of its property.
1385
Requisites for application of rule:
1) A partner has received, in whole or in part, his share in the partnership credit
2) The other partners have not collected their shares.
3) The partnership debtor has become insolvent.
321
IV. Obligations of Partnership/Partners to Third Persons
All partners, including industrial partners, are personally liable with all their property.
Their individual liability is pro rata and subsidiary, unless otherwise stipulated
a. Acts for apparently carrying on in the usual way the business of the
partnership
b. Where one partner, acting within the scope of his apparent authority,
receives money or property of a third person and misapplies it1389
1386
Art. 1816
1387
Acts which are not apparently for carrying on in the usual way the business of the partnership
1388
Art. 1822
1389
Art. 1823
322
c. Where the partnership, in the course of its business, receives money or
property and it is misapplied by any partner while it is in the custody of the
partnership1390
V. Dissolution
Change in the relation of the partners caused by any partner ceasing to be associated
in carrying on the business.1391
It is the point in time when the partners cease to carry on the business together. It
represents the demise of a partnership.
Dissolution is caused:
(b) By the express will of any partner, who must act in good faith, when no
definite term or particular is specified;
(c) By the express will of all the partners who have not assigned their
interests or suffered them to be charged for their separate debts, either before or
after the termination of any specified term or particular undertaking;
(d) By the expulsion of any partner from the business bona fide in
accordance with such a power conferred by the agreement between the partners;
(2) In contravention of the agreement between the partners, where the circumstances
do not permit a dissolution under any other provision of this article, by the express will of
any partner at any time;
(3) By any event which makes it unlawful for the business of the partnership to be
carried on or for the members to carry it on in partnership;
(4) When a specific thing which a partner had promised to contribute to the
partnership, perishes before the delivery; in any case by the loss of the thing, when the
1390
Ibid
Criminal liability of partnership:
Partnership liability does not extend to criminal liability where the wrongdoing is regarded as
individual in character. But where the crime is statutory, especially when it involves a fine rather than
imprisonment, criminal liability may be imposed
All partners are solidarily liable with the partnership for any penalty or damage arising from a
partnership tort or breach of trust
1391
Art. 1828
323
partner who contributed it having reserved the ownership thereof, has only transferred to
the partnership the use or enjoyment of the same; but the partnership shall not be dissolved
by the loss of the thing when it occurs after the partnership has acquired the ownership
thereof;
A. Definition
One formed by two or more persons having as members one or more general
partners and one or more limited partners, the latter not being personally liable for the
obligations of the partnership.
Formation Amendment
1392
A strict compliance with the legal requirements is not necessary. It is sufficient that there is substantial
compliance in good faith. If there is no substantial compliance, the partnership becomes a general
partnership as far as third persons are concerned, in which all the members are liable as general partners.
(Jo Chung Cang vs. Pacific Commercial Co., 45 Phil. 142 [1923].
However, a firm which fails to substantially comply with the formal requirements of a limited
partnership is a general partnership only as to its relations to third persons. The firm is a limited
partnership, subject to all rules applicable to such partnership; and as between the partners they are
bound by their agreement; and that all the limited partners relations to his co-partners and their
obligations to him growing out of the relation remain unimpaired.
As to third persons or creditors guilty of estoppel, the firm shall not be treated as a general
partnership despite lack of substantial compliance to the requirements of a limited partnership. If
creditors deal with the firm as a limited partnership, they will be estopped from insisting that there is no
such partnership, or that the terms of the partnership were not sufficiently stated in the notice of its
formation. (40 Am. Jur. 476.)
324
c. Location of principal place of 4. Admission of general partner
business
5. Death, insolvency, insanity, civil
d. Name/place of residence of interdiction of general partner &
members business is continued
j. Right of limited partner (if given) 10. Change in other statement in certificate
to substitute an assignee
Rights:
1. To have the partnership books kept at the principal place of business of the
partnership
2. To inspect, at a reasonable hour, partnership books and copy any of them
3. To demand true and full information of the things affecting the partnership
4. To demand a formal account of the partnership affairs whenever circumstances
render it just and reasonable
5. To ask for dissolution and winding up by decree of court
6. To receive a share in the profits or other compensation by way of income
provided that the partnership assets are in excess of partnership liabilities after such payment
325
b) The consent of all the members has been obtained1393
c) The certificate is cancelled or so amended as to set forth the withdrawal
or reduction
Obligation:
1393
Exception:
When the return of the contribution may be rightfully demanded:
1) On the dissolution of the partnership
2) Upon the arrival of the date specified in the certificate for the return
3) After he has given 6 months notice in writing to all other partners, if no time is specified in the
certificate there for the return of the contribution or for the dissolution of the partnership
326
AGENCY1394
I. Definition of agency
II. Powers
A. To bind principal1398
The agent who acts as such is not personally liable to the party with whom he
contracts, unless he expressly binds himself or exceeds the limits of his authority without
giving such party sufficient notice of his powers.1399
If the agent contracts in the name of the principal, exceeding the scope of his
authority, and the principal does not ratify the contract, it shall be void if the party with
whom the agent contracted is aware of the limits of the powers granted by the principal. In
this case, however, the agent is liable if he undertook to secure the principal's ratification.1400
If a duly authorized agent acts in accordance with the orders of the principal, the
latter cannot set up the ignorance of the agent as to circumstances whereof he himself was,
or ought to have been, aware.1401
So far as third persons are concerned, an act is deemed to have been performed
within the scope of the agent's authority, if such act is within the terms of the power of
attorney, as written, even if the agent has in fact exceeded the limits of his authority
according to an understanding between the principal and the agent.1402
1394
General rule: There are no formal requirements governing the appointment of an agent. The agents
authority may be oral or written. It may be in a public or private writing.
Exception: When the law requires a specific form
1395
agent
1396
principal
1397
Art. 1868
1398
General Rule: The principal is not bound by the acts of the agent beyond his limited powers.
Exceptions:
1. Where the principals acts have contributed to deceive the third person in good faith;
2. Where the limitations upon the power created by him could not have been known by the third
person;
3. Where the principal has placed in the hands of the agent instruments signed by him in blank
(Strong vs. Gutierrez Repide, 6 Phil. 680 [1906])
4. Where the principal has ratified the acts of the agent.
1399
Art. 1897
1400
Art. 1898
1401
Art. 1899
1402
Art. 1900
327
A third person cannot set up the fact that the agent has exceeded his powers, if the
principal has ratified, or has signified his willingness to ratify the agent's acts.1403
A third person with whom the agent wishes to contract on behalf of the principal
may require the presentation of the power of attorney, or the instructions as regards the
agency. Private or secret orders and instructions of the principal do not prejudice third
persons who have relied upon the power of attorney or instructions shown them.1404
B. Exception
If an agent acts in his own name, the principal has no right of action against the
persons with whom the agent has contracted; neither have such persons against the
principal.
In such case, the agent is the one directly bound in favor of the person with whom
he has contracted, as if the transaction were his own, except when the contract involves
things belonging to the principal.
Express Implied1406
One where the agent has been actually One which is implied from the
authorized by the principal, either orally or in
writing; 1. acts of the principal- from his silence or
lack of action, or his failure to repudiate the
agency knowing that another person is acting
on his behalf without authority.
1403
Art. 1901
1404
Art. 1902
1405
Art. 1883
1406
The principal is still bound by the acts of the agent just as in case of express agency
328
IV. Agency by estoppel
One who clothes another with apparent authority as his agent, and holds him out to
the public as such, cannot be permitted to deny the authority of such person in good faith,
and in the honest belief that he is what he appears to be.1407
One which comprises all the business of the One which comprises one or more specific
principal transactions
One which is created in general terms and is deemed to comprise only acts of
administration.
The scope of the agents authority is what appears in the written terms of the power
of attorney. While third persons are bound to inquire into the extent or scope of the agents
authority, they are not required to go beyond the terms of the written power of attorney.
Third persons cannot be adversely affected by an understanding between the principal and
his agent as to the limits of the latters authority. In the same way, third persons need not
concern themselves with instructions given by the principal to his agent outside the written
power of attorney.1408
The concept is essentially one of estoppel and has been explained in this manner:
"The principal is bound by the acts of his agent with the apparent authority which he
knowingly permits the agent to assume, or which he holds the agent out to the public as
possessing. The question in every case is whether the principal has by his voluntary act
placed the agent in such a situation that a person of ordinary prudence, conversant with
business usages and the nature of the particular business, is justified in presuming that such
agent has authority to perform the particular act in question.1409
1407
Cuison vs. CA, GR.88531, October 26, 1993
1408
Siredy Enterprises, Inc. vs. CA, et al. GR 129039, September 27, 2002
A third person with whom the agent wishes to contract on behalf of the principal may require the
presentation of the power of attorney or the instructions as regards the agency; except private or secret
orders.
1409
Irving v. Doctors Hospital of Lake Worth, Inc., 415 So. 2d 55 (1982), quoting Arthur v. St. Peters
Hospital, 169 N.J. 575, 405 A. 2d 443 (1979)
329
IX. Rights and Obligations of Principal
The principal must comply with all the obligations which the agent may have
contracted within the scope of his authority.
As for any obligation wherein the agent has exceeded his power, the principal is not
bound except when he ratifies it expressly or tacitly.1410
When the agent has exceeded his authority, the principal is solidarily liable with the
agent if the former allowed the latter to act as though he had full powers.1411
The principal must advance to the agent, should the latter so request, the sums
necessary for the execution of the agency.
Should the agent have advanced them, the principal must reimburse him therefor,
even if the business or undertaking was not successful, provided the agent is free from all
fault.
The reimbursement shall include interest on the sums advanced, from the day on
which the advance was made.1412
The principal must also indemnify the agent for all the damages which the execution
of the agency may have caused the latter, without fault or negligence on his part.1413
The agent may retain in pledge the things which are the object of the agency until the
principal effects the reimbursement and pays the indemnity set forth in the two preceding
articles.1414
When two persons contract with regard to the same thing, one of them with the
agent and the other with the principal, and the two contracts are incompatible with each
other, that of prior date shall be preferred, without prejudice to the provisions of Article
1544.1416
Agency by estoppel is defined as "one created by operation of law and established by proof of such
acts of the principal as reasonably lead third persons to the conclusion of its existence. Arises where
principal by negligence in failing to supervise agents affairs, allows agent to exercise powers not granted
to him, thus justifying others in believing the agent possesses requisite authority
1410
Art. 1910
1411
Art. 1911
1412
Art. 1912
1413
Art. 1913
1414
Art. 1914
1415
Art. 1915
1416
Art. 1916
330
In the case referred to in the preceding article, if the agent has acted in good faith,
the principal shall be liable in damages to the third person whose contract must be rejected.
If the agent acted in bad faith, he alone shall be responsible.1417
The principal is not liable for the expenses incurred by the agent in the following
cases:
(1) If the agent acted in contravention of the principal's instructions, unless the latter
should wish to avail himself of the benefits derived from the contract;
(2) When the expenses were due to the fault of the agent;
(3) When the agent incurred them with knowledge that an unfavorable result would
ensue, if the principal was not aware thereof;
(4) When it was stipulated that the expenses would be borne by the agent, or that the
latter would be allowed only a certain sum.1418
X. Irrevocable agency
The agent may withdraw from the agency by giving due notice to the principal. If the
latter should suffer any damage by reason of the withdrawal, the agent must indemnify him
therefor, unless the agent should base his withdrawal upon the impossibility of continuing
the performance of the agency without grave detriment to himself. 1420
The agent, even if he should withdraw from the agency for a valid reason, must
continue to act until the principal has had reasonable opportunity to take the necessary steps
to meet the situation.1421
The agency shall remain in full force and effect even after the death of the principal,
if it has been constituted in the common interest of the latter and of the agent, or in the
interest of a third person who has accepted the stipulation in his favor.1422
1417
Art. 1917
1418
Art. 1918
1419
Art. 1927
1420
Art. 1928
1421
Art. 1929
1422
Art. 1930
331
XI. Modes of extinguishment
COMPROMISE
I. Definition
III. Effect
The effect and authority of res judicata; but there shall be no execution except in
compliance with a judicial compromise.1426
If one of the parties fails or refuses to abide by the compromise, the other party may
either enforce the compromise or regard it as rescinded and insist upon his original
demand.1427
1423
Agent may withdraw by giving notice to the principal, but must indemnify the principal for damages
that he may suffer by reason of such withdrawal.
1424
Art. 2028
1425
Art. 2035
1426
Art. 2037
1427
Art. 2041
332
CREDIT TRANSACTIONS
I. Loan
Commodatum Mutuum
When the bailor1430 delivers to the Where the lender delivers to the
bailee1431 a non-consumable thing so borrower money or other
that the latter may use it for a certain consumable thing upon the
time and return the identical thing. condition that the latter shall pay the
same amount of the same kind and
quality.
Object
Non-consumable Consumable
Cause
Purpose
Subject Matter
333
Ownership of the thing
Thing to be returned
Bailor Debtor
When to return
In case of urgent need, even before Only after the expiration of the
the expiration of the term term
1432
Arts. 1946 1952
1433
Art. 1941
334
loaned, provided the bailee brings the same
e. when the bailee devoted the thing for to the knowledge of the bailor before
any purpose different from that for incurring them, except when they are so
which it has been loaned1434 urgent that the reply to the notification
cannot be awaited without danger.
3. To be liable for the deterioration of thing
loaned 3. To be liable to the bailee for damages for
known hidden flaws.1438
(a) if expressly stipulated;
(b) if guilty of fault or negligence; or
(c) if he devotes the thing to any purpose
different from that for which it has been
loaned
1437
supra
1434
Art. 1942
1435
Art. 1949, par. 2
1436
The bailee has no right to retain the thing loaned as security for claims he has against the bailor even
for extraordinary expenses except for a claim for damages suffered because of the flaws of the thing
loaned.
However, the bailees right extends no further than retention of the thing loaned until he is
reimbursed for the damages suffered by him.
He cannot lawfully sell the thing to satisfy such damages without courts approval.
In case there are two or more bailees, their obligation shall be solidary.
1438
Requisites:
a. There is flaw or defect in the thing loaned;
b. The flaw or defect is hidden;
c. The bailor is aware thereof;
d. He does not advise the bailee of the same; and
e. The bailee suffers damages by reason of said flaw or defect
If the above requisites concur, the bailee has the right of retention for damages.
The bailor cannot exempt himself from the payment of expenses or damages by abandoning the
thing to the
335
C. Interest and the suspension of usury law
Exceptions:
2. The following are the rules of thumb for the application/imposition of interest
rates:
ii. In other cases, the rate of interest shall be six percent (6%) per
annum.1443
1439
Must be in writing in view of Art. 1956
1440
loan or forbearance of money
1441
i.e. 12% per annum
1442
The interest due shall itself earn legal interest from the time it is judicially demanded
1443
No interest, however, shall be adjudged on unliquidated claims or damages except when or until the
demand can be established with reasonable certainty. When the demand cannot be established, the
interest shall begin to run only from the date of the judgment of the court is made.
1444
Eastern Shipping Lines vs. CA, July 12, 1994
336
Central Bank Circular No. 416 fixing the rate of interest at 12% per annum deals with
loans, forbearance of any money, goods or credits and judgments involving such loans, or
forbearance in the absence of express agreement to such rate
The Supreme Court in Sps. Solangon vs. Jose Salazar,1446 said that since the usury law
had been repealed by CB Cir. No. 905 there is no more maximum rate of interest and the
rate will just depend on the mutual agreement of the parties1447. But the Supreme Court said
that nothing in said circular grants lenders carta blanche authority to raise interest rates to level
which will either enslave their borrowers or lead to a hemorrhaging of their assets 1448. In
Medel vs. CA,1449, it was ruled that while stipulated interest of 5.5% per month on a loan is
usurious pursuant to CB Circular No. 905, the same must be equitably reduced for being
iniquitous, unconscionable and exorbitant. It is contrary to morals1450. It was reduced to 12%
per annum in consonant with justice and fair play.
II. Deposit1451
A. Voluntary deposit
One wherein the delivery is made by the will of the depositor or by two or more
persons each of whom believes himself entitled to the thing deposited.1452
B. Necessary deposit
One made in compliance with a legal obligation, or on the occasion of any calamity,
or by travellers in hotels and inns,1453 or by travellers with common carriers.1454
1445
Sentinel Insurance Co., Inc. vs. CA, 182 SCRA 517
1446
G.R. No. 125944, June 29, 2001
1447
citing Lim Law vs. Olympic Sawmill Co., 129 SCRA 439
1448
citing Almeda vs. CA, 256 SCRA 292)
1449
299 SCRA 481
1450
contra bonos mores
1451
The chief difference between a voluntary deposit and a necessary deposit is that in the former, the
depositor has a complete freedom in choosing the depositary, whereas in the latter, there is lack of free
choice in the depositor.
1452
Arts. 1968 1995
1453
Arts. 1996 - 2004
1454
Arts. 1734 1735
337
C. Judicial deposit1455
B. Effects of guaranty
When there are two or more guarantors of the same debtor and for the same debt,
the one among them who has paid may demand of each of the others the share which is
proportionally owing from him.
If any of the guarantors should be insolvent, his share shall be borne by the others,
including the payer, in the same proportion. The provisions shall not be applicable, unless
the payment has been made by virtue of a judicial demand or unless the principal debtor is
insolvent.1458
The co-guarantors may set up against the one who paid, the same defenses which
would have pertained to the principal debtor against the creditor, and which are not purely
personal to the debtor.1459
338
C. Extinguishment of guaranty
1. Release in favor of one of the guarantors, without the consent of the others,
benefits all to the extent of the share of the guarantor to whom it has been granted;1461
3. Whenever by some act of the creditor, the guarantors even though they are
solidarily liable cannot be subrogated to the rights, mortgages and preferences of the
former;1463
6. Extension granted to the debtor by the creditor without the consent of the
guarantor.1465
Judicial bonds constitute merely a special class of contracts of guaranty by the fact
that they are given in virtue of a judicial order.
If the person required to give a legal or judicial bond should not be able to do so, a
pledge or mortgage sufficient to cover the obligation shall admitted in lieu thereof.1467
IV. Pledge
A. Definition
A contract wherein the debtor delivers to the creditor or to a third person a movable
or document evidencing incorporeal rights for the purpose of securing fulfillment of a
principal obligation with the understanding that when the obligation is fulfilled, the thing
delivered shall be returned with all its fruits and accessions.
1461
Art. 2078
1462
Art. 2077
1463
Art. 2080
1464
Art. 1231
1465
Art. 2079
1466
Bond - an undertaking that is sufficiently secured, and not cash or currency
Bondsman - a surety offered in virtue of a provision of law or a judicial order. He must have the
qualifications required of a guarantor and in special laws like the Rules of Court. (Art. 2082)
1467
Art 2083
339
B. Kinds
2. Pledgor, mortgagor, antichretic debtor must be the absolute owner of the thing
pledged or mortgaged; and
3. Pledgor, mortgagor, antichretic debtor must have free disposal of their property,
or be legally authorized for such purpose.
6. The description of the thing pledged and the date must appear in a public
instrument to bind third persons, but not for the validity of the contract.1470
D. Obligations of pledge
1. To advise the pledgee of the flaws of the 1. Take care of the thing with the diligence
thing.1471 of a good father of a family.1473
2. Not to demand the return of the thing 2. Not to use thing unless authorized or by
until after full payment of the debt, including the owner or its preservation requires its
interest due thereon and expenses incurred use.1474
for its preservation.1472
3. Not to deposit the thing with a 3rd person
unless so stipulated.1475
1468
Art. 2093
1469
Art. 2094
1470
Art. 2096
1471
Art. 2101
1472
Art. 2105
1473
Art. 2099
1474
Art. 2104
1475
Art. 2100
340
4. Responsibility for acts of agents and
employees as regards the thing.1476
E. Rights of pledgor
3. To alienate the thing pledged provided the pledgee consents to the sale1481
F. Perfection
A pledge shall not take effect against third persons if a description of the thing
pledged and the date of the pledge do not appear in a public instrument.1484
G. Foreclosure
The creditor to whom the credit has not been satisfied in due time, may proceed
before a Notary Public to the sale of the thing pledged. This sale shall be made at a public
auction, and with notification to the debtor and the owner of the thing pledged in a proper
case, stating the amount for which the public sale is to be held. If at the first auction the
thing is not sold, a second one with the same formalities shall be held; and if at the second
1476
Ibid.
1477
Art. 2107
1478
Art. 2116
1479
ibid
1480
Art. 2113
1481
Art. 2097
1482
Arts. 2104 & 2106
1483
Art. 2093
1484
Art. 2096
341
auction there is no sale either, the creditor may appropriate the thing pledged. In this case he
shall be obliged to give an acquittance for his entire claim.1485
The sale of the thing pledged shall extinguish the principal obligation, whether or not
the proceeds of the sale are equal to the amount of the principal obligation, interest and
expenses in a proper case. If the price of the sale is more than said amount, the debtor shall
not be entitled to the excess, unless it is otherwise agreed. If the price of the sale is less,
neither shall the creditor be entitled to recover the deficiency, notwithstanding any
stipulation to the contrary.1486
Pledges created by operation of law, such as those referred to in Articles 546, 1731,
and 19941487, are governed by the foregoing articles on the possession, care and sale of the
thing as well as on the termination of the pledge. However, after payment of the debt and
expenses, the remainder of the price of the sale shall be delivered to the obligor.1488
A thing under a pledge by operation of law may be sold only after demand of the
amount for which the thing is retained. The public auction shall take place within one month
after such demand. If, without just grounds, the creditor does not cause the public sale to be
held within such period, the debtor may require the return of the thing.1489
(1) Exact fulfillment of the obligation, should the vendee fail to pay;
(2) Cancel the sale, should the vendee's failure to pay cover two or more installments;
(3) Foreclose the chattel mortgage on the thing sold, if one has been constituted,
should the vendee's failure to pay cover two or more installments. In this case, he shall have
no further action against the purchaser to recover any unpaid balance of the price. Any
agreement to the contrary shall be void.1490
1485
Art. 2112
1486
Art. 2115
1487
See Reference
1488
Art. 2121
1489
Art. 2122
1490
Art. 1484
1491
Art. 2140
342
V. Real Mortgage
A contract whereby the debtor secures to the creditor the fulfilment of a principal
obligation, specially subjecting to such security immovable property or real rights over
immovable property in case the principal obligation is not complied with at the time
stipulated.
Characteristics:
1. Real
3. Subsidiary
4. Unilateral it creates only an obligation on the part of the creditor who must free
the property from the encumbrance once the obligation is fulfilled.
B. Essential requisites
1. It can cover only immovable property and alienable real rights imposed upon
immovable;1492
3. Registration in the registry of property is necessary to bind third persons, but not
for the validity of the contract1494.
C. Foreclosure
The remedy available to the mortgagee by which he subjects the mortgaged property
to the satisfaction of the obligation to secure that for which the mortgage was given.
1492
Art. 2124
1493
Art. 2125
1494
Art. 2125
343
VI. Antichresis
A contract whereby the creditor acquires the right to receive the fruits of an
immovable of the debtor, with the obligation to apply them to the payment of the interest, if
owing, and thereafter to the principal of his credit..1495
Characteristics:
Characteristics
1495
Art 2132)
1496
Art 2134
1497
Creditor may avoid said obligation by:
a. compelling debtor to reacquire enjoyment of the property or
b. by stipulation to the contrary
1498
Art. 2140
344
B. Registration
The registration of the chattel mortgage is an effective and binding notice to other
creditors of its existence and creates a real right or a lien which, being recorded, follows the
chattel wherever it goes. The registration gives the mortgagee symbolical possession. 1499
VIII. Quasi-Contracts
A. Negotiorum Gestio -
B. Solutio Indebiti -
Arises whenever a person unduly delivers a thing through mistake to another who
has no right to demand it.
1499
Northern Motors, Inc. vs. Coquia, 68 SCRA 374
Effect of failure to register chattel mortgage in the chattel mortgage registry:
Article 2140 makes the recording in the Chattel Mortgage Register an essential requisite but if the
instrument is not recorded, the mortgage is nevertheless binding between the parties. But the person in
whose favor the law establishes a mortgage has no other right than to demand the execution and the
recording of the document.
1500
The rules on preference of credits apply only when two or more creditors have separate and distinct
claims against the same debtor who has insufficient property.
Preference creates no lien on property, and, therefore, gives no interest in property, specific or
general, to the preferred creditor but a preference in application of the proceeds after the sale. (Molina
vs. Somes, 31 Phil. 76)
The preferential right of credit attains significance only after the properties of the debtor have been
inventoried and liquidated, and the claims held by his various creditors have been established. (DBP vs.
NLRC, 183 SCRA 328)
345
B. Preferred Credits on Specific Movables
Those credits which enjoy preference with respect to specific movables, exclude all
others to the extent of the value of the personal property to which the preference refers.1501
If there are two or more credits with respect to the same specific movable property,
they shall be satisfied pro rata, after the payment of duties, taxes and fees due the State or
any subdivision thereof.1502
C. Exempt Property
1. Present property those provided under Arts. 155 and 205 of the Family
Code, Sec. 13, Rule 39 of the Rules of Court,1504 and Sec. 118 of the Public Land Act1505
1503
2. Future property a debtor who obtains a discharge from his debts on account
of his insolvency, is not liable for the unsatisfied claims of his creditors with said property
subject to certain exceptions expressly provided by law.1506
D. Classification of credits
With reference to specific movable property of the debtor, the following claims or
liens shall be preferred:
(1) Duties, taxes and fees due thereon to the State or any subdivision thereof;
(3) Claims for the unpaid price of movables sold, on said movables, so long as they
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 price is still unpaid, the lien may be enforced on the price; this
right is not lost by the immobilization of the thing by destination, provided it has not lost its
form, substance and identity; neither is the right lost by the sale of the thing together with
other property for a lump sum, when the price thereof can be determined proportionally;
1501
Art. 2246
1502
Art. 2247
1503
See Reference
1504
Ibid.
1505
Ibid.
1506
Secs. 68, 69, The Insolvency Law [Act No. 1956]
346
(4) Credits guaranteed with a pledge so long as the things pledged are in the hands of
the creditor, or those guaranteed by a chattel mortgage, upon the things pledged or
mortgaged, up to the value thereof;
(5) Credits for the making, repair, safekeeping or preservation of personal property,
on the movable thus made, repaired, kept or possessed;
(6) Claims for laborers' wages, on the goods manufactured or the work done;
(8) Credits between the landlord and the tenant, arising from the contract of tenancy
on shares, on the share of each in the fruits or harvest;
(9) Credits for transportation, upon the goods carried, for the price of the contract
and incidental expenses, until their delivery and for thirty days thereafter;
(10) Credits for lodging and supplies usually furnished to travellers by hotel keepers,
on the movables belonging to the guest as long as such movables are in the hotel, but not
for money loaned to the guests;
(11) Credits for seeds and expenses for cultivation and harvest advanced to the
debtor, upon the fruits harvested;
(12) Credits for rent for one year, upon the personal property of the lessee existing
on the immovable leased and on the fruits of the same, but not on money or instruments of
credit;
(13) Claims in favor of the depositor if the depositary has wrongfully sold the thing
deposited, upon the price of the sale.
In the foregoing cases, if the movables to which the lien or preference attaches have
been wrongfully taken, the creditor may demand them from any possessor, within thirty days
from the unlawful seizure.1507
With reference to specific immovable property and real rights of the debtor, the
following claims, mortgages and liens shall be preferred, and shall constitute an encumbrance
on the immovable or real right:
(2) For the unpaid price of real property sold, upon the immovable sold;
347
(4) Claims of furnishers of materials used in the construction, reconstruction, or
repair of buildings, canals or other works, upon said buildings, canals or other works;
(5) Mortgage credits recorded in the Registry of Property, upon the real estate
mortgaged;
(6) Expenses for the preservation or improvement of real property when the law
authorizes reimbursement, upon the immovable preserved or improved;
(8) Claims of co-heirs for warranty in the partition of an immovable among them,
upon the real property thus divided;
(9) Claims of donors or real property for pecuniary charges or other conditions
imposed upon the donee, upon the immovable donated;
(10) Credits of insurers, upon the property insured, for the insurance premium for
two years.1508
The claims or credits enumerated in the two preceding articles shall be considered as
mortgages or pledges of real or personal property, or liens within the purview of legal
provisions governing insolvency. Taxes mentioned in No. 1, article 2241, and No. 1, article
2242, shall first be satisfied.1509
With reference to other property, real and personal, of the debtor, the following
claims or credits shall be preferred in the order named:
(1) Proper funeral expenses for the debtor, or children under his or her parental
authority who have no property of their own, when approved by the court;
(2) Credits for services rendered the insolvent by employees, laborers, or household
helpers for one year preceding the commencement of the proceedings in insolvency;
(3) Expenses during the last illness of the debtor or of his or her spouse and children
under his or her parental authority, if they have no property of their own;
(4) Compensation due the laborers or their dependents under laws providing for
indemnity for damages in cases of labor accident, or illness resulting from the nature of the
employment;
(5) Credits and advancements made to the debtor for support of himself or herself,
and family, during the last year preceding the insolvency;
1508
Art. 2242
1509
Art. 2243
348
(6) Support during the insolvency proceedings, and for three months thereafter;
(8) Legal expenses, and expenses incurred in the administration of the insolvent's
estate for the common interest of the creditors, when properly authorized and approved by
the court;
(9) Taxes and assessments due the national government, other than those mentioned
in articles 2241, No. 1, and 2242, No. 1;1510
(10) Taxes and assessments due any province, other than those referred to in articles
2241, No. 1, and 2242, No. 1;1511
(11) Taxes and assessments due any city or municipality, other than those indicated
in articles 2241, No. 1, and 2242, No. 1;1512
(14) Credits which, without special privilege, appear in (a) a public instrument; or (b)
in a final judgment, if they have been the subject of litigation. These credits shall have
preference among themselves in the order of priority of the dates of the instruments and of
the judgments, respectively.1513
Credits of any other kind or class, or by any other right or title not comprised in the
four preceding articles, shall enjoy no preference.1514
1510
supra
1511
ibid
1512
ibid
1513
Art. 2244
1514
Art. 2245
349
E. Order of preference of credits
Those credits which enjoy preference with respect to specific movables, exclude all
others to the extent of the value of the personal property to which the preference refers.1515
If there are two or more credits with respect to the same specific movable property,
they shall be satisfied pro rata, after the payment of duties, taxes and fees due the State or
any subdivision thereof.1516
Those credits which enjoy preference in relation to specific real property or real
rights, exclude all others to the extent of the value of the immovable or real right to which
the preference refers.1517
If there are two or more credits with respect to the same specific real property or real
rights, they shall be satisfied pro rata, after the payment of the taxes and assessments upon
the immovable property or real right.1518
The excess, if any, after the payment of the credits which enjoy preference with
respect to specific property, real or personal, shall be added to the free property which the
debtor may have, for the payment of the other credits.1519
Those credits which do not enjoy any preference with respect to specific property,
and those which enjoy preference, as to the amount not paid, shall be satisfied according to
the following rules:
(2) Common credits referred to in Article 22451521 shall be paid pro rata regardless of
dates.1522
1515
Art. 2246
1516
Art. 2247
1517
Art. 2248
1518
Art. 2249
1519
Art. 2250
1520
supra
1521
ibid
1522
Art. 2251
350
X. Insolvency Law
A. Definition of insolvency
The relative condition of mans assets and liabilities that the former, if all made
immediately available, would not be sufficient to discharge the latter.1523
B. Suspension of payments
C. Voluntary insolvency
The situation of a debtor who, having debts exceeding P1,000 cannot discharge all of
them with all of his existing assets, and who, as a consequence, voluntarily goes to court to
have himself declared as an insolvent so that his assets may be equitably distributed among
his creditors.
D. Involuntary insolvency
Instituted by three (3) or more resident creditors for an individual debtor whose
credits aggregating not less than P1,000 accrued in the Philippines against a debtor who has
committed any of the acts of insolvency.
1523
Philippine Commercial Law by C. Villanueva, 1998 Ed., p.729
1524
Sec. 2
351
LEASE
I. Lease of things
One of the parties binds himself to give to another the enjoyment or use of a thing
for a price certain and for a period which may be definite or indefinite. However, no lease
for more than ninety-nine years shall be valid.1525
One of the parties binds himself to execute a piece of work or to render to the other
some service for a price certain, but the relations of principal and agent does not exist
between them.1526
A. Qualified persons
Those not covered within the scope as provided for under Articles 1490 and 1491 1527
of the Civil Code.1528
B. Registration
Every lease of real estate may be recorded in the Registry of Property. Unless a lease
is recorded, it shall not be binding upon third persons.1529
C. Prohibitions
The lessee cannot assign the lease without the consent of the lessor, unless there is a
stipulation to the contrary.1530
When in the contract of lease of things there is no express prohibition, the lessee
may sublet the thing leased, in whole or in part, without prejudice to his responsibility for
the performance of the contract toward the lessor.1531
Without prejudice to his obligation toward the sublessor, the sublessee is bound to
the lessor for all acts which refer to the use and preservation of the thing leased in the
manner stipulated between the lessor and the lessee.1532
1525
Art. 1643
1526
Art. 1644
1527
See Reference
1528
Art. 1646
1529
Art. 1648
1530
Art. 1649
1531
Art. 1650
352
The sublessee is subsidiarily liable to the lessor for any rent due from the lessee.
However, the sublessee shall not be responsible beyond the amount of rent due from him, in
accordance with the terms of the sublease, at the time of the extra-judicial demand by the
lessor.
Payments of rent in advance by the sublessee shall be deemed not to have been
made, so far as the lessor's claim is concerned, unless said payments were effected in virtue
of the custom of the place.1533
(1) To deliver the thing which is the object of the contract in such a condition as to
render it fit for the use intended;
(2) To make on the same during the lease all the necessary repairs in order to keep it
suitable for the use to which it has been devoted, unless there is a stipulation to the contrary;
(3) To maintain the lessee in the peaceful and adequate enjoyment of the lease for
the entire duration of the contract.1534
If the thing leased is totally destroyed by a fortuitous event, the lease is extinguished.
If the destruction is partial, the lessee may choose between a proportional reduction of the
rent and a rescission of the lease.1535
(1) To pay the price of the lease according to the terms stipulated;
(2) To use the thing leased as a diligent father of a family, devoting it to the use
stipulated; and in the absence of stipulation, to that which may be inferred from the nature
of the thing leased, according to the custom of the place;
The lessee may suspend the payment of the rent in case the lessor fails to make the
necessary repairs or to maintain the lessee in peaceful and adequate enjoyment of the
property leased.1538
1532
Art. 1651
1533
Art. 1652
1534
Art. 1654
1535
Art. 1655
1536
Art. 1656
1537
Art. 1657
353
If the lessor or the lessee should not comply with the obligations set forth in articles
1654 and 1657,1539 the aggrieved party may ask for the rescission of the contract and
indemnification for damages, or only the latter, allowing the contract to remain in force.1540
If a dwelling place or any other building intended for human habitation is in such a
condition that its use brings imminent and serious danger to life or health, the lessee may
terminate the lease at once by notifying the lessor, even if at the time the contract was
perfected the former knew of the dangerous condition or waived the right to rescind the
lease on account of this condition.1541
If during the lease it should become necessary to make some urgent repairs upon the
thing leased, which cannot be deferred until the termination of the lease, the lessee is obliged
to tolerate the work, although it may be very annoying to him, and although during the same,
he may be deprived of a part of the premises.
If the repairs last more than forty days the rent shall be reduced in proportion to the
time - including the first forty days - and the part of the property of which the lessee has
been deprived.
When the work is of such a nature that the portion which the lessee and his family
need for their dwelling becomes uninhabitable, he may rescind the contract if the main
purpose of the lease is to provide a dwelling place for the lessee.1542
The lessee is obliged to bring to the knowledge of the proprietor, within the shortest
possible time, every usurpation or untoward act which any third person may have committed
or may be openly preparing to carry out upon the thing leased.
He is also obliged to advise the owner, with the same urgency, of the need of all
repairs included in No. 2 of article 1654.1543
In both cases the lessee shall be liable for the damages which, through his negligence,
may be suffered by the proprietor.
If the lessor fails to make urgent repairs, the lessee, in order to avoid an imminent
danger, may order the repairs at the lessor's cost.1544
The lessee shall return the thing leased, upon the termination of the lease, as he
received it, save what has been lost or impaired by the lapse of time, or by ordinary wear and
tear, or from an inevitable cause.1545
1538
Art. 1658
1539
supra
1540
Art. 1659
1541
Art. 1660
1542
Art. 1662
1543
supra
1544
Art. 1663
354
In the absence of a statement concerning the condition of the thing at the time the
lease was constituted, the law presumes that the lessee received it in good condition, unless
there is proof to the contrary.1546
The lessee is responsible for the deterioration or loss of the thing leased, unless he
proves that it took place without his fault. This burden of proof on the lessee does not apply
when the destruction is due to earthquake, flood, storm or other natural calamity.1547
The lessee is liable for any deterioration caused by members of his household and by
guests and visitors.1548
The bailor shall refund the extraordinary expenses during the contract for the
preservation of the thing loaned, provided the bailee brings the same to the knowledge of
the bailor before incurring them, except when they are so urgent that the reply to the
notification cannot be awaited without danger.
If the extraordinary expenses arise on the occasion of the actual use of the thing by
the bailee, even though he acted without fault, they shall be borne equally by both the bailor
and the bailee, unless there is a stipulation to the contrary.1549
The lessee shall have no right to a reduction of the rent on account of the sterility of
the land leased, or by reason of the loss of fruits due to ordinary fortuitous events; but he
shall have such right in case of the loss of more than one-half of the fruits through
extraordinary and unforeseen fortuitous events, save always when there is a specific
stipulation to the contrary.
Extraordinary fortuitous events are understood to be: fire, war, pestilence, unusual
flood, locusts, earthquake, or others which are uncommon, and which the contracting parties
could not have reasonably foreseen.1550
Neither does the lessee have any right to a reduction of the rent if the fruits are lost
after they have been separated from their stalk, root or trunk.1551
The lease of a piece of rural land, when its duration has not been fixed, is understood
to have been for all the time necessary for the gathering of the fruits which the whole estate
1545
Art. 1665
1546
Art. 1666
1547
Art. 1667
1548
Art. 1668
1549
Art. 1949
1550
Art. 1680
1551
Art. 1681
355
leased may yield in one year, or which it may yield once, although two or more years have to
elapse for the purpose.1552
The outgoing lessee shall allow the incoming lessee or the lessor the use of the
premises and other means necessary for the preparatory labor for the following year; and,
reciprocally, the incoming lessee or the lessor is under obligation to permit the outgoing
lessee to do whatever may be necessary for the gathering or harvesting and utilization of the
fruits, all in accordance with the custom of the place.1553
Land tenancy on shares shall be governed by special laws, the stipulations of the
parties, the provisions on partnership and by the customs of the place.1554
The head of the family shall furnish, free of charge, to the house helper, suitable and
sanitary quarters as well as adequate food and medical attendance.1557
If the house helper is under the age of eighteen years, the head of the family shall
give an opportunity to the house helper for at least elementary education. The cost of such
education shall be a part of the house helper's compensation, unless there is a stipulation to
the contrary.1558
No contract for household service shall last for more than two years. However, such
contract may be renewed from year to year.1559
The house helper's clothes shall be subject to stipulation. However, any contract for
household service shall be void if thereby the house helper cannot afford to acquire suitable
clothing.1560
The head of the family shall treat the house helper in a just and humane manner. In
no case shall physical violence be used upon the house helper.1561
1552
Art. 1682
1553
Art. 1683
1554
Art. 1684
1555
Art. 1685
1556
Art. 1689
1557
Art. 1690
1558
Art. 1691
1559
Art. 1692
1560
Art. 1693
356
House helpers shall not be required to work more than ten hours a day. Every house
helper shall be allowed four days' vacation each month, with pay.1562
In case of death of the house helper, the head of the family shall bear the funeral
expenses if the house helper has no relatives in the place where the head of the family lives,
with sufficient means therefor.1563
If the period for household service is fixed neither the head of the family nor the
house helper may terminate the contract before the expiration of the term, except for a just
cause. If the house helper is unjustly dismissed, he shall be paid the compensation already
earned plus that for fifteen days by way of indemnity. If the house helper leaves without
justifiable reason, he shall forfeit any salary due him and unpaid, for not exceeding fifteen
days.1564
(1) If the compensation is paid by the day, notice may be given on any day that the
service shall end at the close of the following day;
(2) If the compensation is paid by the week, notice may be given, at the latest on the
first business day of the week, that the service shall be terminated at the end of the seventh
day from the beginning of the week;
(3) If the compensation is paid by the month, notice may be given, at the latest, on
the fifth day of the month, that the service shall cease at the end of the month.1565
Upon the extinguishment of the service relation, the house helper may demand from
the head of the family a written statement on the nature and duration of the service and the
efficiency and conduct of the house helper.1566
Owners of enterprises and other employers are obliged to pay compensation for the
death of or injuries to their laborers, workmen, mechanics or other employees, even though
the event may have been purely accidental or entirely due to a fortuitous cause, if the death
or personal injury arose out of and in the course of the employment. The employer is also
liable for compensation if the employee contracts any illness or disease caused by such
1561
Art. 1694
1562
Art. 1695
1563
Art. 1696
1564
Art. 1697
1565
Art. 1698
1566
Art. 1699
357
employment or as the result of the nature of the employment. If the mishap was due to the
employee's own notorious negligence, or voluntary act, or drunkenness, the employer shall
not be liable for compensation. When the employee's lack of due care contributed to his
death or injury, the compensation shall be equitably reduced. 1567
If the death or injury is due to the negligence of a fellow worker, the latter and the
employer shall be solidarily liable for compensation. If a fellow worker's intentional or
malicious act is the only cause of the death or injury, the employer shall not be answerable,
unless it should be shown that the latter did not exercise due diligence in the selection or
supervision of the plaintiff's fellow worker.1568
By the contract for a piece of work the contractor binds himself to execute a piece of
work for the employer, in consideration of a certain price or compensation. The contractor
may either employ only his labor or skill, or also furnish the material.1569
If the contractor agrees to produce the work from material furnished by him, he shall
deliver the thing produced to the employer and transfer dominion over the thing. This
contract shall be governed by the following articles as well as by the pertinent provisions on
warranty of title and against hidden defects and the payment of price in a contract of sale.1570
The contract shall execute the work in such a manner that it has the qualities agreed
upon and has no defects which destroy or lessen its value or fitness for its ordinary or
stipulated use. Should the work be not of such quality, the employer may require that the
contractor remove the defect or execute another work. If the contract fails or refuses to
comply with this obligation, the employer may have the defect removed or another work
executed, at the contractor's cost.1571
An agreement waiving or limiting the contractor's liability for any defect in the work
is void if the contractor acted fraudulently.1572
If the contractor bound himself to furnish the material, he shall suffer the loss if the
work should be destroyed before its delivery, save when there has been delay in receiving
it.1573
The contractor who has undertaken to put only his work or skill, cannot claim any
compensation if the work should be destroyed before its delivery, unless there has been
delay in receiving it, or if the destruction was caused by the poor quality of the material,
1567
Art. 1711
1568
Article 1712
1569
Art. 1713
1570
Art. 1714
1571
Art. 1715
1572
Art. 1716
1573
Art. 1717
358
provided this fact was communicated in due time to the owner. If the material is lost
through a fortuitous event, the contract is extinguished.1574
Acceptance of the work by the employer relieves the contractor of liability for any
defect in the work, unless:
(1) The defect is hidden and the employer is not, by his special knowledge, expected
to recognize the same; or
(2) The employer expressly reserves his rights against the contractor by reason of the
defect.1575
The price or compensation shall be paid at the time and place of delivery of the
work, unless there is a stipulation to the contrary. If the work is to be delivered partially, the
price or compensation for each part having been fixed, the sum shall be paid at the time and
place of delivery, in the absence if stipulation.1576
If, in the execution of the work, an act of the employer is required, and he incurs in
delay or fails to perform the act, the contractor is entitled to a reasonable compensation.
The amount of the compensation is computed, on the one hand, by the duration of
the delay and the amount of the compensation stipulated, and on the other hand, by what
the contractor has saved in expenses by reason of the delay or is able to earn by a different
employment of his time and industry.1577
The engineer or architect who drew up the plans and specifications for a building is
liable for damages if within fifteen years from the completion of the structure, the same
should collapse by reason of a defect in those plans and specifications, or due to the defects
in the ground. The contractor is likewise responsible for the damages if the edifice falls,
within the same period, on account of defects in the construction or the use of materials of
inferior quality furnished by him, or due to any violation of the terms of the contract. If the
engineer or architect supervises the construction, he shall be solidarily liable with the
contractor.1579
Acceptance of the building, after completion, does not imply waiver of any of the
cause of action by reason of any defect mentioned in the preceding paragraph.
1574
Art. 1718
1575
Art. 1719
1576
Art. 1720
1577
Art. 1721
1578
Art. 1722
1579
Art. 1723
359
The action must be brought within ten years following the collapse of the building.
The contractor who undertakes to build a structure or any other work for a
stipulated price, in conformity with plans and specifications agreed upon with the land-
owner, can neither withdraw from the contract nor demand an increase in the price on
account of the higher cost of labor or materials, save when there has been a change in the
plans and specifications, provided:
(1) Such change has been authorized by the proprietor in writing; and
(2) The additional price to be paid to the contractor has been determined in writing
by both parties.1580
The owner may withdraw at will from the construction of the work, although it may
have been commenced, indemnifying the contractor for all the latter's expenses, work, and
the usefulness which the owner may obtain therefrom, and damages.1581
When a piece of work has been entrusted to a person by reason of his personal
qualifications, the contract is rescinded upon his death.
In this case the proprietor shall pay the heirs of the contractor in proportion to the
price agreed upon, the value of the part of the work done, and of the materials prepared,
provided the latter yield him some benefit.
The same rule shall apply if the contractor cannot finish the work due to
circumstances beyond his control.1582
The contractor is responsible for the work done by persons employed by him.1583
The contractor is liable for all the claims of laborers and others employed by him,
and of third persons for death or physical injuries during the construction.1584
Those who put their labor upon or furnish materials for a piece of work undertaken
by the contractor have an action against the owner up to the amount owing from the latter
to the contractor at the time the claim is made. However, the following shall not prejudice
the laborers, employees and furnishers of materials:
(1) Payments made by the owner to the contractor before they are due;
(2) Renunciation by the contractor of any amount due him from the owner.
360
If it is agreed that the work shall be accomplished to the satisfaction of the
proprietor, it is understood that in case of disagreement the question shall be subject to
expert judgment.
If the work is subject to the approval of a third person, his decision shall be final,
except in case of fraud or manifest error.1586
He who has executed work upon a movable has a right to retain it by way of pledge
until he is paid.1587
1585
Art. 1729
1586
Art. 1730
1587
Art. 1731
361
LAND TITLES AND DEEDS
I. Torrens System
A system for registration of land under which, upon the landowners application, the
court may, after appropriate proceedings, direct the issuance of a certificate of title.
The Torrens system does not create or vest title. It only confirms and records title
already existing and vested. It does not protect a usurper from the true owner. It cannot be a
shield for the commission of fraud. It does not permit one to enrich himself at the expense
of another1588
This method is also known as the Torrens system of land registration.1589 There are
two (2) laws ancillary to Act No. 496. These are the Cadastral Law of February 11, 19131590
and the Public Land Law of December 1, 19361591 which have been subsequently amended by
later legislations.
Presidential Decree No. 1529 was issued to cope with the growing need of updating
the Land Registration Act, to codify the various other laws relative to registration of real
property and real rights, and to further strengthen the Torrens system. Land Registration Act
No. 496 of February 1, 1903 has not been repealed or abrogated but rather, all laws,
decrees, orders, rules and regulations or parts thereof, in conflict with any provisions of this
decree are hereby repealed or modified accordingly.1592
B. Certificate of Title
This is the true copy of the decree of registration or the transcription thereof and
like the decree shall also be signed by LRA Administrator1593
It takes effect upon the date of entry thereof, and the land covered thereby becomes
registered land on that date.
1588
Angeles vs. Samia, 66 Phil. 444 (1938)
1589
Act 496 has been amended by P.D. 1529 which was enacted on June 11, 1978
1590
Act 2259
1591
Com. Act No. 141
1592
Sec. 20, P.D. No. 1529
1593
Sec. 39, ibid
362
II. Regalian Doctrine
A. Concept
All lands of the public domain, waters, minerals, coal, petroleum and other mineral
oils, all forces of potential energy, fisheries, forests, or timber, wildlife, flora and fauna, and
natural resources belong to the state. With the exception of agricultural lands, all other
natural resources shall not be alienated.1594
B. Effects
Under the Regalian doctrine, all lands of the public domain belong to the State,
which is the source of any asserted right to ownership of land. All lands not otherwise
appearing to be clearly within private ownership are presumed to belong to the State.1595
Native Title - refers to pre-conquest rights to lands and domains which, as far back
as memory reaches, have been held under a claim of private ownership by ICCs/IPs, have
never been public lands and are thus indisputably presumed to have been held that way since
before the Spanish Conquest.1596
Only Filipino citizens may acquire not more than 12 hectares by purchase,
homestead or grant, or lease not more than 500 hectares.
Private corporations may lease not more than 1,000 hectares for 25 years renewable
for another 25 years.
1594
Sec. 2, Art. XII, 1987 Constitution
1595
Spouses Reyes et at. v. CA, 295 SCRA 296, September 10, 1998; Cacho v. CA, 269 SCRA 159, March
3,1997
1596
See R.A. 8371
363
IV. Original Registration1597
1. Under PD 1529
b. Those who have acquired ownership of private lands by prescription under the
provisions of existing laws;
c. Those who have acquired ownership of private lands or abandoned river beds by
right of accession or accretion; and
d. Those who have acquired ownership of land in any other manner provided for by
law.
Where the land is owned in common, all the co-owners shall file the application
jointly.
Where the land has been sold under pacto de retro, the vendor a retro may file an
application for the original registration of the land, provided, however, that should the
period for redemption expire during the pendency of the registration proceedings and
ownership to the property consolidated in the vendee a retro, the latter shall be substituted for
the applicant and may continue the proceedings.
A trustee on behalf of the principal may apply for original registration of any land
held in trust by him, unless prohibited by the instrument creating the trust.1598
1597
Takes place when the title to land is made of public record for the first time in the name of its lawful
owner. Under the Torrens system, it refers to the registration procedure from the filing of the application
to the issuance of the original certificate of title in pursuance of the decree of registration.
Kinds of Original Registration
1. Voluntary by filing with the proper court
a) Under P.D. No. 1529 (Property Registration Decree)
b) Under Sec. 48 of CA No. 141, Public Land Act
2. Involuntary cadastral proceedings
Compulsory registration initiated by the government, to adjudicate ownership of land
Involuntary on the part of the claimants but they are compelled to substantiate their claim or interest
through an answer
1598
Sec. 14
All these persons must be natural-born Filipino Citizens. However, by way of exception, juridical
persons may apply for registration of leased agricultural and disposable lands not exceeding 1,000
hectares in area for a period of 25 years and renewable for not more than 25 years. (Sec. 3, Chapter XII,
1987 Constitution)
364
2. Under CA 141
(a) Those who prior to the transfer of sovereignty from Spain to the prior United
States have applied for the purchase, composition or other form of grant of lands of the
public domain under the laws and royal decrees then in force and have instituted and
prosecuted the proceedings in connection therewith, but have with or without default upon
their part, or for any other cause, not received title therefor, if such applicants or grantees
and their heirs have occupied and cultivated said lands continuously since the filing of their
applications.
(b) Those who by themselves or through their predecessors in interest have been in
open, continuous, exclusive, and notorious possession and occupation of agricultural lands
of the public domain, under a bona fide claim of acquisition or ownership, for at least thirty
years immediately preceding the filing of the application for confirmation of title except
when prevented by war or force majeure. These shall be conclusively presumed to have
performed all the conditions essential to a Government grant and shall be entitled to a
certificate of title under the provisions of this chapter.
(c) Members of the national cultural minorities who by themselves or through their
predecessors-in-interest have been in open, continuous, exclusive and notorious possession
and occupation of lands of the public domain suitable to agriculture, whether disposable or
not, under a bona fide claim of ownership for at least 30 years shall be entitled to the rights
granted in sub-section (b) hereof.
3. Under RA 8371
Individual and indigenous corporate claimants of ancestral lands which are not
within ancestral domains, may have their claims officially established by filing applications
for the identification and delineation of their claims with the Ancestral Domains Office. An
individual or recognized head of a family or clan may file such application in his behalf or in
behalf of his family or clan, respectively.1599
Notwithstanding the prohibition in the 1973 and 1987 Constitutions against private corporations
holding lands of the public domain except by lease, still a private corporation may institute confirmation
proceedings under Section 48(b) of Public Land Act if, at the time of institution of the registration
proceedings, the land was already private land. (Dir. of Lands vs. IAC and ACME Plywood, 146 SCRA 509)
1599
Sec. 53 (b)
365
B. Registration process and requirements
1. Survey of the land by the Bureau of Lands 1. The application must be in writing, signed
or a duly licensed private surveyor;1600 and sworn to by the applicant or by someone
duly authorized in his behalf; and if there is
2. Filing of Application for Registration by more than one applicant, the application
the applicant;1601 shall be signed and sworn to by and in behalf
of each. The full name, citizenship, status,
3. Setting of date for initial hearing by the residence and post office address of the
court; applicant must be stated therein.
1600
Must be drawn in a tracing cloth plan
Approved only by the Director of Land Management (authority of LRA to approve such plan was
withdrawn by P.D. 239 dated July 9, 1983)
1601
Always at the RTC of the province, city or municipality where property is situated.
1602
It is at this point that the court acquires jurisdiction over the subject matter
This is done by the Administrator who acts as the clerk of court
1603
Republication or amendment of technical description of land is necessary when there is substantial
increase of the area of the land. If increase is merely minimal, no republication is needed. (Benin vs.
Tuason, 57 SCRA 531)
366
declaring the decision final and instructing
the Land Registration Authority to issue a
Decree of Confirmation and Registration;1604
1604
it is not the court but the LRA which issues the decree of confirmation and registration
1 year after issuance of decree, it becomes incontrovertible and amendments of the same will not be
allowed except merely in case of clerical errors.
Decree of registration may be reviewed on the ground of fraud and must be filed within 1 year from
entry of the decree.
1605
This serves as the reckoning date to determine the 1-year period from which one can impugn the
validity of the registration.
367
C. Remedies
1. New Trial1606
2. Relief from Judgment1607
3. Appeal1608
4. Petition for Review1609
5. Action for Reconveyance1610
6. Recovery of Damages
D. Cadastral registration1611
1606
Sec.1, Rule 37, Rules of Court
Grounds:
a. fraud, accident, mistake or excusable negligence which ordinary prudence could not have
guarded against
b. newly discovered evidence
c. award of excessive damages, or insufficiency of the evidence to justify the decision
1607
Nature: subsidiary remedy, i.e. may be availed only when the judgment has become final and a new
trial is not available
Grounds: when a judgment is entered against a party through fraud, accident, mistake, or excusable
negligence, such party may file a petition in the court that rendered such judgment praying that the said
judgment be set aside.
1608
Under P.D. 1529, judgments and orders in land registration cases are appealable to the Court of
Appeals or to the Supreme Court in the same manner as ordinary actions
Must be filed within 15 days from receipt of the judgment or final order appealed from.
1609
of a Decree
Any person may file a petition for review to set aside the decree of registration on the ground that he
was deprived of their opportunity to be heard in the original registration case not later than one (1) year
after the entry of the decree.
It is a petition for review of judgment when it is filed after rendition of the decision but before the
entry of the decree of registration. And it is a petition for review of the decree when it is filed within the
one year period after such entry.
1610
An action seeking to transfer or reconvey the land from the registered owner to the rightful owner
May be filed even after the lapse of one year from entry of the decree of registration as long as the
property has not been transferred or conveyed to an innocent purchaser for value.
An action for reconveyance does not aim or purport to reopen the registration proceedings and set
aside the decree of registration but only to show that the person who secured the registration of the
questioned property is not the real owner thereof. The action, while respecting the decree as
incontrovertible, seeks to transfer or reconvey the land from the registered owner to the rightful owner.
(Esconde vs Borlongay, 152 SCRA 603)
1611
Here, 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.
368
V. Subsequent Registration1612
A. Voluntary dealings.1613
Refer to deeds, instruments or documents which are results of the free and voluntary
acts of the parties thereto
B. Involuntary dealings1614
1612
Takes place when any deed affecting the land is made of public record after the date of its original
registration.; where incidental matters after original registration may be brought before the land
registration court by way of motion or petition filed by the registered owner or a party in interest.
1613
In voluntary sale of land, the registration of the instrument is the operative act that transmits or
transfers title.
Where there is nothing on the certificate of title to indicate any cloud or vice in the ownership of the
property, or any encumbrance thereon, the purchaser is not required to explore further than what the
Torrens title upon its face indicates in quest for any hidden defect or inchoate right that may
subsequently defeat his right thereto. (Fule vs. Legare. GR No. 17951)
The exception to the above rule is embodied in the case of Dela Merced vs. GSIS (365 SCRA 1) where
the court ruled that when the purchaser or mortgagee is a financing institution, the general rule that a
purchaser or mortgagee of the land is not required to look further than what appears on the face of the
title does not apply.
Well settled is the rule that all persons dealing with property covered by Torrens certificate of title
are not required to go beyond what appears on the face of the title. When there is nothing on the COT
indicating any cloud or vice in the ownership of the property, or any encumbrance thereon, the purchaser
is not required to explore further than what the Torrens Title upon its face indicates in quest for any
hidden defect or inchoate right that may subsequently defeat his right thereto. [Centeno vs CA, 139 SCRA
545, 555 (1985)]
Exceptions for applicability:
1) purchaser in bad faith [Egao vs. CA, 174 SCRA 484, 492 (1989)];
2) sufficiently strong indications to impel closer inquiry into the location, boundaries and condition
of the lot. (Francisco vs. CA 153 SCRA 330, 336, 337);
3) where a person buys land not from the registered owner but from one whose right to the land
has been merely annotated on the COT. (Quiniano vs. CA 39 SCRA 221);
4) purchaser of land the certificate of title contains a notice of lis pendens;
5) purchaser with full knowledge of flaws and defects in the title.(Bernales vs. IAC 166 SCRA 519,
524; Lu vs. Manipon, 381 SCRA 788)
1614
Involuntary dealings affecting registered land which must be registered:
a. attachments
b. sale on execution or for taxes or for any assessment
c. adverse claim
d. notice of lis pendens
Claim or interest is adverse when:
a. claimants right or interest in registered land is adverse to the registered owner;
b. such right arose subsequent to date of original registration;
c. no other provision is made in the Decree for the registration of such right or claim
(Sec. 70, 1st par., P.D. 1529)
An adverse claim is a notice to third persons that someone is claiming an interest on the property
or has a better right than the registered owner thereof, and that any transaction regarding the disputed
land is subject to the outcome of the dispute (Sajonas vs CA, [GR No. 102377, July 5, 1996)
369
Refer to such writ order or process issued by a court of record affecting registered
land which by law should be registered to be effective, and also to such instruments which
are not the willful acts of the registered owner and which may have been executed even
without his knowledge or against his consent.
The following lands are not registrable by any private person in his name:
1. Those devoted to public land use such as public roads, plazas, canals, streets,
rivers, banks and shores;
Public forests are non-alienable public lands. Possession of public forests on the part
of the claimant, however long, cannot convert the same into private property1616
The system of registration under the Spanish Mortgage Law is hereby discontinued
and all lands recorded under said system which are not yet covered by Torrens title shall be
considered as unregistered lands.
Hereafter, all instruments affecting lands originally registered under the Spanish
Mortgage Law may be recorded under Section 113 of this Decree, until the land shall have
been brought under the operation of the Torrens system.
The books of registration for unregistered lands provided under Section 194 of the
Revised Administrative Code, as amended by Act No. 3344, shall continue to remain in
Notice of lis pendens is intended to constructively advise, or warn all people who deal with the
property that they so deal with it at their own risk, and whatever rights they may acquire in the property
in any voluntary transaction are subject to the results of the action, and may well be inferior and
subordinate to those which may be finally determined and laid down therein. (Heirs of Maria Marasigan
vs. IAC. 152 SCRA 253).
1615
Art. XIV, Sec. 8, New Constitution
1616
Vano vs. Government of P.I., 41 Phil. 161 (1920)
1617
Sec. 3, P.D. 1529; also Sec. 113
370
force; provided, that all instruments dealing with unregistered lands shall henceforth be
registered under Section 113 of this Decree.1618
(a) The Register of Deeds for each province or city shall keep a Primary Entry Book
and a Registration Book. The Primary Entry Book shall contain, among other particulars, the
entry number, the names of the parties, the nature of the document, the date, hour and
minute it was presented and received. The recording of the deed and other instruments
relating to unregistered lands shall be effected by any of annotation on the space provided
therefor in the Registration Book, after the same shall have been entered in the Primary
Entry Book.
(b) If, on the face of the instrument, it appears that it is sufficient in law, the Register
of Deeds shall forthwith record the instrument in the manner provided herein. In case the
Register of Deeds refuses its administration to record, said official shall advise the party in
interest in writing of the ground or grounds for his refusal, and the latter may appeal the
matter to the Commissioner of Land Registration in accordance with the provisions of
Section 117 of this Decree. It shall be understood that any recording made under this section
shall be without prejudice to a third party with a better right.
(c) After recording on the Record Book, the Register of Deeds shall endorse among
other things, upon the original of the recorded instruments, the file number and the date as
well as the hour and minute when the document was received for recording as shown in the
Primary Entry Book, returning to the registrant or person in interest the duplicate of the
instrument, with appropriate annotation, certifying that he has recorded the instrument after
reserving one copy thereof to be furnished the provincial or city assessor as required by
existing law.
(d) Tax sale, attachment and levy, notice of lis pendens, adverse claim and other
instruments in the nature of involuntary dealings with respect to unregistered lands, if made
in the form sufficient in law, shall likewise be admissible to record under this section.
(e) For the services to be rendered by the Register of Deeds under this section, he
shall collect the same amount of fees prescribed for similar services for the registration of
deeds or instruments concerning registered lands.1619
16181618
Sec. 3, P.D. 1529
1619
Sec. 113, id.
371
TORTS AND DAMAGES
Book I Torts1620
I. Principles
A. Abuse of Right
Every person must, in the exercise of his rights and in the performance of his duties,
act with justice, give everyone his due, and observe honesty and good faith. 1621
Elements:
B. Unjust Enrichment1622
Every person who through an act of performance by another, or any other means,
acquires or comes into possession of something at the expense of the latter without just or
legal ground, shall return the same to him.1623
If something is received when there is no right to demand it, and it was unduly
delivered through mistake, the obligation to return it arises.1624
Certain lawful, voluntary and unilateral acts give rise to the juridical relation of quasi-
contract to the end that no one shall be unjustly enriched or benefited at the expense of
another.1625
1620
An unlawful violation of private right, not created by contract, and which gives rise to an action for
damages.
It is an act or omission producing an injury to another, without any previous existing lawful relation of
which the said act or omission may be said to be a natural outgrowth or incident.
1621
Art. 19
Contains a mere declaration of principles. The declaration is implemented by Art. 20 (Globe Mackay vs.
CA)
Sets certain standards which must be observed not only in the exercised of ones rights but also in the
performance of ones duties. These standards are:
1. To act with justice
2. To give everyone his due; and
3. Observe honesty and good faith
There is no hard and fast rule to determine whether or not the principle may be invoked.
1622
Elements of Unjust Enrichment:
1. There must be enrichment on the part of the defendant.
2. There is a concomitant injury to the plaintiff.
3. There is no just cause or legal ground for the enrichment
1623
Art. 22
1624
Art. 2154
372
C. Liability without Fault
Even when an act or event causing damage to another's property was not due to
the fault or negligence of the defendant, the latter shall be liable for indemnity if
through the act or event he was benefited.1626
Every person who, contrary to law, wilfully or negligently causes damage to another,
shall indemnify the latter for the same.1627
Any person who wilfully causes loss or injury to another in manner that is contrary
to morals, good customs or public policy shall compensate the latter for the damage.1628
Include conduct where the Involve voluntary acts or When the person is made
actor desires to cause the omissions which result in liable independent of fault or
consequences of his act or injury to others without negligence upon submission
believes that the intending to cause the same of proof of certain facts
consequences are or because the actor fails to specified by law.1630
substantially certain to result exercise due care in
from it.1629 performing such acts or
omissions.
1625
Art. 2142
1626
Art.23
1627
Art. 20
Even if the particular provision of law does not expressly provide for indemnification in case of
violation, so long as there is a violation of law and damage resulting therefrom, there is liability for
damages under this article.
1628
Art. 21
There is an act which may be legal but which may be contrary to morals, good customs, public order
or public policy (Albeson vs. CA)
1629
They are found in Chapter 2 of the Preliminary Title of the NCC entitled Human Relations. Although
this chapter covers negligent acts, the torts mentioned herein are mostly intentional in nature or torts
involving malice or bad faith.
1630
Strict liability tort can be committed even if reasonable care was exercised and regardless of the state
of mind of the actor at that time.
373
B. According to scope: general or specific
General Specific
1. Natural Persons
2. Juridical Persons
(ii) Other corporations, institutions and entities for public interest or purpose,
created by law; their personality begins as soon as they have been constituted according to
law;
1631
i.e. Arts. 19, 20 and 21
1632
Aquino, 2005, citing PNB v. CA, et al. 83 SCRA 237
1633
manufacturing and selling defective products
1634
Art. 44
374
Juridical persons may acquire and possess property of all kinds, as well as incur
obligations and bring civil or criminal actions, in conformity with the laws
and regulations of their organization.1635
1. In General
2. Guardians:
1635
Art. 46
1636
under Art. 2180
Basis:
Pater Familias. The reason for the masters liability is the negligence in the supervision of his
subordinates.
1637
Arts. 218-219, 221
1638
Requisites of vicarious liability of Parents:
1. The child is below twentyone (21) years of age
2. The child committed a tortuous act to the damage and prejudice of another person
3. The child lives in the company of the parent concerned whether single or married.
1639
To be liable, the manager must be acting as an employer or with the same authority as the
owner.
375
4. Employers:
5. State acting through a special agent and not when the damage has been
caused by the official to whom the task done properly pertains.
The responsibility shall cease when the persons mentioned prove that they observed
all the diligence of a good father of a family to prevent damage.1643
1640
To make the employer liable, it must be established that the injurious or tortuous act was committed
at the time the employee was performing his functions.
If there is deviation from the scope of employment, the employer is not liable, no
matter how short in time is the deviation. (Pineda, Torts and Damages, 2009, p.97)
1641
Statutory basis:
if student is minor Art. 219, FC
if student is no longer a minor Art. 2180, Civil Code
Applies also to teachers of academic institutions.
Liability attaches to the teacher-in-charge.
The school itself is now solidarily liable with the teacher-in-charge.
The liability extends to acts committed even outside the school so long as it is an official activity of the
school.
Whenever the school or teacher is being made liable, the parents and those exercising substitute
parental authority are not free from liability because Art. 219 of the Family Code expressly provides that
they are subsidiarily liable.
Art. 2180 makes teachers and heads liable for acts of students and apprentices whether the latter are
minors or not.
General rule: The teacher-in-charge is liable for the acts of his students. The school and administrators
are not liable.
Exception: It is only the head of the school, not the teacher who is held liable where the injury is
caused in a school of arts and trade.
The liability of the teacher subsists whether the school is academic or non- academic.
Liability is imposed only if the pupil is already in the custody of the teacher or head. The student is in
the custody of the school authorities as longs as he is under the control and influence of the school and
within its premises whether the semester had not yet begun or has already ended.
The victim of negligence is likewise required to exercise due care in avoiding injury to himself.
1642
Art. 2180
1643
The persons liable shall be exempted from liability if they can prove that they have exercised
all the diligence of a good father of a family to prevent damage.
376
The school, its administrators and teachers, or the individual, entity or institution
engaged in child are shall have special parental authority and responsibility over the minor
child while under their supervision, instruction or custody.
Authority and responsibility shall apply to all authorized activities whether inside or
outside the premises of the school, entity or institution.1644
Those given the authority and responsibility mentioned shall be principally and
solidarily liable for damages caused by the acts or omissions of the unemancipated minor.
The parents, judicial guardians or the persons exercising substitute parental authority over
said minor shall be subsidiarily liable.
The respective liabilities of those referred to in the preceding paragraph shall not
apply if it is proved that they exercised the proper diligence required under the particular
circumstances.1645
Parents and other persons exercising parental authority shall be civilly liable for the
injuries and damages caused by the acts or omissions of their unemancipated children living
in their company and under their parental authority subject to the appropriate defenses
provided by law.1646
Quasi-delict Elements
Whoever by act or omission causes damage (a) fault or negligence of the defendant, or
to another, there being fault or negligence is some other person for whose acts he must
obliged to pay for the damage done.1647 respond;
1644
Art. 218, FC
1645
Art. 219, id.
1646
Art. 221, id.
1647
Article 2176
Difference between Articles 218 & 2180
Art 218
School, admin, teachers engaged in child care are made expressly liable
School, admin, teachers is solidary and parents are made subsidiary liable
Students involved must be minor
Art 2180
Teachers, head of establishment in Arts and trades are made expressly liable
No such express solidary nor subsidiary liability is stated
Students involved not necessarily minor
377
defendant and the damages incurred by the
plaintiff.1648
6. Employers liability is
subsidiary
1648
Philippine Bank of Commerce v. CA, 336 Phil. 667, 675 (1997)
1649
Fabre Jr. vs. CA, 259 SCRA 426
1650
Barredo vs Garcia, 73 Phil 607; J. Bocobo, 1940
378
Culpa Aquiliana Crime
The Civil Code by means of indemnification The Revised Penal Code punishes or
merely repairs the damage corrects criminal act
Includes all acts in which any kind of fault or Punished only if there is a penal law clearly
negligence intervenes covering them
Liability is direct and primary in quasi-delict Liability of the employer of the actor-
employee is subsidiary in crimes
A person who himself is not guilty of negligence is made liable for conduct of
another.1651
His liability is primary and direct, not subsidiary. He is solidarily liable with
the tortfeasor.1653 His responsibility is not conditioned upon the insolvency of or prior
recourse against the negligent tortfeasor.1654
1651
Vicarious liability
The liability of the vicarious obligor is primary and direct and not subsidiary. He is solidarily
liable with the tortfeasor. His responsibility is not conditioned upon the insolvency of or prior recourse
against the negligent tortfeasor.
1652
The presumption is juris tantum and not juris et de jure; subsequently, it may be rebutted.
Accordingly, if the employer shows to the satisfaction of the court that in the selection and
supervision of his employee he has exercised the care and diligence of a good father of a family,
the presumption is overcome and he is relieved of the liability
1653
The responsibility of two or more persons who are liable for quasi-delict is solidary (Art. 2194)
1654
De Leon Brokerage v. CA, G.R. 15247, Feb. 28, 1962
379
2. In Particular1655
a. Parents1656
b. Guardian
1655
Art. 2180
1656
Father and Mother shall jointly exercise parental authority over common children. In case of
disagreement, father's decision shall prevail (Art. 211)
Persons liable for the act of minors other than parents.
a. Those exercising substitute parental authority
b. Surviving grandparents
c. Oldest sibling, over 21 years old unless unfit
or unqualified
d. Childs actual custodian, over 21 years old
unless unfit or disqualified
1657
NCC and FC
1658
Tamagro vs. CA, 209 SCRA 519
The basis of liability for the acts or omissions of their minor children is the parental authority that they
exercise over them, except for children 18 to 21.
The same foreseability test of negligence should apply to parents when they are sought to be held
liable under Art. 2180, NCC
The liability is not limited to parents, the same is also imposed on those exercising substitute and
special parental authority, i.e., guardian.
The liability is present only both under Art 2180 of the NCC and Art 221 of the Family Code if the child
is living in his parents company.
Parental authority is not the sole basis of liability. A teacher in charge is still liable for the acts of their
students even if the minor student reaches the age of majority.
The parents or guardians can still be held liable even if the minor is already emancipated provided that
he is below 21 years of age.
Parents and other persons exercising parental authority can escape liability by proving that they
observed all the diligence of a good father of a family to prevent damages. (Art. 2180)
The burden of proof rests on the parents and persons exercising parental authority
1659
They are relatives and neighbors who take upon themselves the duty to care and support
orphaned children without passing through judicial proceedings (Pineda, p. 88, 2009 ed.)
380
c. Owners and Managers of Establishments and
Enterprises
They are liable for damage caused by their employees in the service of the
branches in which they are employed, or on the occasion of their functions.
d. Employers1660
The employer is liable only if the employee was performing his assigned task at the
time the injury was caused. This includes any act done by the employee in the furtherance
of the interest of the employer at the time of the infliction of the injury or damage.1661
(2) Requisites
2. The service is to be rendered in/accordance with orders which the employer has
the authority to give all times;
3. The elicit act of the employee was on the occasion or by reason of the
functions entrusted to him.
(b) Services rendered in accordance
with orders which employer has
authority to give
Person for whom the services are to be performed controls not just the result but
also the means and manner to achieve such end or result.
The vicarious liability of the employer attaches only when the tortious conduct of the
employee relates to, or is in the course of his employment.1663
1660
Defenses available to employers:
a. exercise of due diligence ins election and
supervision of employees
b. act/omission was made outside working hours and in violation of company's rules and regulations
1661
Aquino, T., Torts and Damages, 2005, Second Ed., p. 697
1662
Art. 97, P.D. 442
1663
Valenzuela v. CA
381
(c) Illicit act of employee was on the
occasion or by reason of the
functions entrusted to him
It is not necessary that the task performed by the employee is his regular job
or that which was expressly given to him by the employer. It is enough that the task
is indispensable to the business or beneficial to the employer.1664
The employer is presumed to be negligent and the presumption flows from the
negligence of the employee. Once the employees fault is established, the employer can
then be made liable on the basis of the presumption that the employer failed to
exercise diligentissimi patris families in the selection and supervision of its employees.1665
As long as their employees and household helpers acted within the scope of their
assigned task.1666
It is a defense that the employer exercised proper diligence in the selection and
supervision of negligent employee.
If based on culpa aquiliana under Art. 2176 and 2180 of the Civil Code, the
liability is primary, while that under Art. 103 of the Revised Penal Code is subsidiary.
e. State
The State is only liable for the negligent acts of its officers, agents and
employees when they are acting as special agents. The State has voluntarily assumed
liability for acts done through special agents.1667
1664
Filamer Christian Institute v. IAC, 212 SCRA 637
1665
LRTA v. Navidad, G.R. 145804, Feb. 6, 2003
1666
For, admittedly, employees oftentimes wear different hats. They perform functions beyond their
office, title or designation but which, nevertheless, are still within the call of duty (Castilex Industrial
Corporation v. Vasquez., et al.)
1667
Two Kinds:
1. Public officials with a particular assigned tasks but is specially commissioned to do such task
foreign to his usual assigned governmental function.
382
f. Teachers and heads of establishments of arts and
trades1668
The basis of the teachers vicarious liability is, as such, they acting in loco
1669
parentis. However teachers are not expected to have the same
measure of responsibility as that imposed on parent for their influence over the child
is not equal in degree. The parent can instill more lasting discipline more lasting
disciple on the child than the teacher and so should be held to a greater
accountability than the teacher or the head for the tort committed by the child.
C. Joint Tortfeasors
All the persons who command, instigate, promote, encourage, advice, countenance,
cooperate in, aid, or abet the commission of a tort, or who approve of it after it is done, if
done for their benefit; they are each liable as a principal, to the same extent and in the same
manner as if they have performed the wrongful act themselves. 1670
A. Concept of Act
Any bodily movement tending to produce some effect in the external world,
it being unnecessary that the same be actually produced, as the possibility of its
production is sufficient.1671
V. Proximate Cause
383
A. Concept
1. Definition
That cause which in natural and continuous sequence, unbroken by any efficient
intervening cause, produces the injury, without which the result would not have occurred.1673
2. Test
In determining the proximate cause of the If the defendants negligence was not the
injury, it is first necessary to determine if the cause-in-fact, the inquiry stops.
defendants negligence was the cause-in-fact
of the damage to the plaintiff. If it is, the inquiry shifts to the question of
limit of the defendants liability.
It is necessary that there be proof that
defendant's conduct is a factor in causing
plaintiff's damage.
A cause that directly produces an event and The last event in a chain of events though
without which the event would not have not necessarily the proximate cause of what
occurred.1675 follows.1676
A cause that is legally sufficient to result in One which comes into active operation in
liability; an act or omission that is considered producing the result after the actors
in law to result in a consequence, so that negligent act or omission has occurred.
liability can be imposed on the actor.1677
1673
Primary cause remains the proximate cause even if there is an intervening cause which merely
cooperated with the primary cause and which did not break the chain of causation.
1674
The directness approach is being applied in this jurisdiction
1675 th
Blacks Law Dictionary, 9 Ed.
1676
Ibid.
1677
Ibid.
384
One which destroys the causal connection
between the negligent act and the injury and
thereby negatives liability.1678
B. Cause in Fact
In order to be a substantial factor in producing the harm, the causes set in motion by
the defendant must continue until the moment of the damage or at least down the setting in
motion of the final active injurious force which immediately produced or preceded the
damage.
2. Concurrent Causes
The actor is liable even if the active and substantially simultaneous operation of the
effects of a third persons innocent, tortious or criminal act is also a substantial factor in
bringing about the harm so long as the actors negligent conduct actively and continuously
operate to bring about harm to another.1682
Where several causes producing the injury are concurrent and each is an efficient
cause without which the injury would not have happened, the injury may be attributed to all
or any of the causes and recovery may be had against any or all of the responsible persons.
1678
Example: The medical findings, show that the infection of the wound by tetanus was an efficient
intervening cause later or between the time Javier was wounded to the time of his death. (People vs.
Rellin, 77 Phil 1038)
1679
supra
1680 th
Blacks Law Dictionary, 9 Ed.
1681
Ibid.
1682
Africa vs. Caltex
385
of a single injury to a third person, and it is impossible to determine what proportion each
contributed to the injury, either of them is responsible for the whole injury, even though his
act alone might not have caused the entire injury; they become joint tort-feasors and are
solidarily liable for the resulting damage under Article 21941683 of the Civil Code.
C. Legal Cause
Where the defendants liability is recognized only if the harm or injury suffered
is the natural and probable consequence of his act or omission complained of.1685
Involves 2 things:
1. Causality - damage would not have resulted without the fault or negligence of the
defendant
2. Adequacy - the fault of the defendant would normally result in the damage
suffered by the obligee1686
2. Foreseeability
Involves the question of probability, that is, the existence of some real likelihood of
some damage and the likelihood is of such appreciable weight reasonably to induce, action to
avoid it.
Even if a particular injury was not foreseeable, the risk is still foreseeable if
possibility of injury is foreseeable.
Where the particular harm was reasonably foreseeable at the time of the
defendants misconduct, his act or omission is the legal cause thereof. To be negligent,
the defendant must have acted or failed to act in such a way that an ordinary
reasonable man would have realized that certain interests of certain persons were
unreasonably subjected to a general but definite class of risk which made the actors
conduct negligent, it is obviously the consequence for the actor must be held legally
responsible.
1683
The responsibility of two or more persons who are liable for quasi-delict is solidary.
1684
Art. 2202, see Reference
1685
Banzon v. CA, 175 SCRA 297
1686
Reyes & Puno
386
D. Efficient Intervening Cause1687
One which destroys the causal connection between the negligent act and the injury
and thereby negatives liability.
There is no efficient intervening cause if the force created by the negligent act or
omission have either:
Cause Condition
The active cause of the harm The existing conditions upon which the cause
operated.1689
1687
A cause is not an intervening cause if it was already in operation at the time the negligent act is
committed.
Foreseeable intervening causes cannot be considered sufficient intervening causes.
The intervention of unforeseen and unexpected cause is not sufficient to relieve the wrongdoer from
consequences of negligence if such negligence directly and proximately cooperates with the independent
cause in the resulting injury.
1688
Example: The medical findings, show that the infection of the wound by tetanus was an efficient
intervening cause later or between the time Javier was wounded to the time of his death (People vs.
Rellin, 77 Phil 1038)
1689
If the defendant has created only a passive static condition which made the damage possible, the
defendant is said not to be liable.
387
F. Last Clear Chance1690
The negligence of the plaintiff does not preclude a recovery for the negligence of the
defendant where it appears that the defendant, by exercising reasonable care and prudence,
might have avoided injurious consequences to the plaintiff notwithstanding the plaintiffs
negligence.
The contributory negligence of the party injured will not defeat the claim for
damages if it is shown that the defendant could, by the exercise of reasonable care
and prudence, have avoided the consequences of the negligence of the injured party.
A. Concept
B. Elements of Right
1690
Doctrine of Last Clear Chance or Discovered Peril
Elements:
a. plaintiff was in a position of danger by his own negligence
b. defendant knew of such position of the plaintiff
c. defendant had the least clear chance to avoid the accident by exercise of ordinary care but failed
to exercise such last clear chance and
d. accident occurred as proximate cause of such failure
Who may invoke: plaintiff
Inapplicable to:
1. joint tortfeasors
rd
2. defendants concurrently negligent as against 3 persons
Cases when the doctrine was held inapplicable (PICCA)
1. If the plaintiff was not negligent.
2. The party charged is required to act instantaneously, and if the injury cannot be avoided by the
application of all the means at hand after the peril is or should have been discovered.
3. If defendants negligence is a concurrent cause and which was still in operation up to the time the
injury was inflicted.
4. Where the plaintiff, a passenger, filed an action against a carrier based on contract.
5. If the actor, though negligent, was not aware of the danger or risk brought about by the prior
fraud or negligent act.
1691 th
Blacks Law Dictionary, 9 Ed.
388
C. Violation of Right or Legal Injury
D. Classes of Injury
3. Economic relations
a. Interference with
contractual relations
b. Unfair competition
4. Political relations
a. Violation of right to
suffrage
1692
freedom of speech, press, assembly and petition, etc.
389
VII. Intentional Torts
A. General
1. Concept
Include conduct where the actor desires to cause the consequences of his act or
believes that the consequences are substantially certain to result from it.
They are found in Chapter 2 of the Preliminary Title of the NCC entitled Human
Relations. Although this chapter covers negligent acts, the torts mentioned herein are
mostly intentional in nature or torts involving malice or bad faith.
2. Classes
1693 th
Blacks Law Dictionary, 9 Ed.
1694
physical injury
1695
grave threat .
1696
illegal detention
1697
Zones of privacy under the NCC, RPC, Rules of Court, and special laws:
1.That every person shall respect the dignity, personality, privacy and peace of mind of his
neighbors and other persons and any act of a person of meddling and prying into the privacy
of another is punishable as an actionable wrong;
2. That a public officer or employee or any private individual shall be liable for damages for any
violation of the rights and liberties of another person, and recognizes the privacy of letters and
other private communications;
3. The RPC makes a crime the:
i. violation of secrets by an officer,
ii. revelation of trade and industrial secrets, and
iii. trespass to dwelling.
4. Invasion of privacy is likewise an offense in special laws such as the:
i. antiwiretapping law; and
ii. secrecy of bank deposits act; and
5. The Rules of Court provisions on privileged communication.
390
3. Trespass to land b. Intrusion
c. public disclosure of private facts
4. Interference with personal property
d. false light in the public eye
a. trespass to chattels
4. Disturbance of peace of mind
b. conversion
5. Malicious prosecution
7. Defamation
The gist of the tort is an interference with one spouses mental attitude toward the
other and the conjugal kindness of marital relations resulting in some actual conduct which
materially affects it.
It extends to all cases of wrongful interference in the family affairs of others whereby
one spouse is induced to leave the other spouse or conduct himself or herself that the
comfort of married life is destroyed.
a. General
(1) Concept
(2) Kinds1698
1698
supra
391
b. Violation of persons security, physical injuries1699
(1) Battery1700
(2) Assault1701
c. False Imprisonment1702
1. he acts intending to confine the other within boundaries fixed by the actor,
2. his act directly or indirectly results in such a confinement, and
3. the other is conscious of the confinement or is harmed by it.
d. Trespass to Land
(1) Concept
It is a tort that is committed when a person unlawfully invades the real property of
another.
(2) Elements
The Revised Penal Code and the New Civil Code requires intent or bad faith.
1699
Art. 33, see Reference
Physical injuries which resulted because of negligence or imprudence is not included in this article;
they are already covered by Article 2176.
1700
Physical Injury
1701
Grave Threat
Includes bodily injuries causing death.
1702
Illegal detention
1703
It applies to private as well as governmental detention.
392
e. Interference with Personal Property
1) Trespass to Chattels
The creditor possesses to himself the mortgaged property with violence and against
the will of the debtor.
2) Conversion
a. General
(1) Concept
(2) Kinds1705
Every person shall respect the dignity, personality, privacy and peace of mind of his
neighbors and other persons. The following and similar acts, though they may not constitute
a criminal offense, shall produce a cause of action for damages, prevention and other relief:
(2) Meddling with or disturbing the private life or family relations of another;
(4) Vexing or humiliating another on account of his religious beliefs, lowly station in
life, place of birth, physical defect, or other personal condition.1706
1704
Elements:
1. the plaintiff has clear legal ownership or right to possession of the property at the time of
the conversion;
2. the defendant's conversion by a wrongful act or disposition of plaintiff's property rights;
3. there are damages resulting from the conversion
1705
supra
1706
Art. 26
393
c. Infliction of emotional distress1707
3. There was a causal connection between the defendants conduct and the plaintiffs
mental distress; and
d. Violation of Privacy
(1) Appropriation
(2) Intrusion
It is not limited to cases where the defendant physically trespassed into anothers
property. It includes cases when the defendant invades ones privacy by looking from
outside.1710
It includes:
394
5. persistent and unwanted telephone calls.
The interest to be protected in this tort is the interest of the individual in not being
made to appear before the public in an objectionable false light or false position.1712
f. Malicious Prosecution
An action for damages brought by one against another whom a criminal prosecution,
civil suit, or other legal proceeding has been instituted maliciously and without probable
cause, after the termination of such prosecution, suit or proceeding in favor of the defendant
therein.
The gist of the action is putting legal process in force regularly, for mere purpose of
vexation or injury.1714
1711
Requisites:
1. Publicity is given to any private or purely personal information about a person;
2. Without the latters consent; and
Regardless of whether or not such publicity constitutes a criminal offense, like libel or defamation, the
circumstance that the publication was made with intent of gain or for commercial and business purposes
invariably serves to aggravate the violation of the right
1712
Example: Defendant was held liable for damages when he published an unauthorized biography of a
famous baseball player exaggerating his feats on the baseball field, portraying him as a war hero. (Spahn
vs. Messner)
If the publicity given to the plaintiff is defamatory, hence an action for libel is also warranted; the
action for invasion of privacy will afford an alternative remedy.
May be committed by the media by distorting a news report.
1713
See Emotional Distress
1714
Drilon vs. CA (1997)
Elements:
1. The fact of the prosecution and the further fact that the defendant was himself the prosecutor;
and that the action was finally terminated with an acquittal;
2. That in bringing the action, the prosecutor acted without probable cause;
3. The prosecutor was actuated or impelled by legal malice.
Malice is the inexcusable intent to injure, oppress, vex, annoy or humiliate.
395
g. Defamation1715
(1) Defenses
Absence of malice1717 signifies good faith on the part of the defendant; good faith
may even be based on mistake of law.
1715
Requisites for one to be liable for defamatory imputations:
a. It must be defamatory
b. It must be malicious
c. It must be given publicity
d. The victim must be identifiable
Test in determining the defamatory character of the imputation:
A charge is sufficient if the words are calculated to induce the hearers to suppose and understand that
the person/s against whom they were uttered were guilty of a certain offense, or are sufficient to
impeach their honesty, virtue, or reputation, or to hold the person/s up to public ridicule.
Dissemination to a number of persons is not required, communication to a single individual is sufficient
publication.
General rule: Every defamatory imputation is presumed to be malicious, even if it be true, if no good
intention or justifiable motive for making it is shown.
Exceptions:
1. A private communication made by any person to another in the performance of any legal, moral or
social duty; and
2. A fair and true report, made in good faith, without any comments or remarks, of any judicial,
legislative or other official proceedings which are not of confidential nature, or of any statement, report,
or speech delivered in said proceedings or of any other act performed by public officers in the exercise of
their functions.
It is not sufficient that the offended party recognized himself as the person attacked or defamed, it
must be shown that at least a third person could identify him as the object of the libelous publication.
In order to escape liability, the defendant may claim that the statements made are privileged.
1716
Art. 353, RPC
RPC considers the statement defamatory if it is an imputation of circumstance tending to cause the
dishonor, discredit or contempt of natural or juridical person or to blacken the memory of one who is
dead.
1717
Presence of probable cause signifies absence of malice.
396
(b) Privilege
Two kinds:
Not actionable even if the author acted in Not actionable unless found to have been
bad faith made without good intention or justifiable
motive.
h. Fraud or Misrepresentation1718
i. Seduction
Seduction, by itself, is an act contrary to morals, good customs and public policy.
It may not even matter that the plaintiff and the defendant are of the same gender.
1718
formerly deceit
1719
esp. when the conduct is willful
1720 th
Blacks Law Dictionary, 9 Ed.
1721
Ibid.
1722
There is liability even if there is no breach of promise to marry.
397
j. Unjust Dismissal
It is a basic rule that an employer has a right to dismiss an employee in the mann
er and on the grounds provided for under the NCC. If the dismissal is for a valid
cause, his dismissal is consistent with the employers right to protect his interest in seeing
to it that his employees are performing their jobs with honesty, integrity and
good faith.
However, such exercise of the right to terminate must be consistent with the
general principles provided for under articles 19 and 21, NCC. If there is non
compliance with said provisions, the employer may be held liable for damages. The
right to dismiss an employee should not be confused with the manner in which the
right is exercised and the effects flowing therefrom. If the dismissal is done anti
socially or oppressively then the employer should be deemed to have violated Article
1701,1723 NCC and Article 21.
An employer may be held liable for damages if the manner of dismissing the
employee is contrary to morals, good customs and public policy. This may be done by
false imputation of misdeed to justify dismissal or any similar manner of dismissal which is
done abusively.
1. General
a. Concept1724
b. Kinds1725
2. Family Relations
a. Alienation of affection
This onsists of depriving one spouse of the affection, society, companionship and
comfort of the other.1726
The gist is an interference with one spouses mental attitude toward the other and
the conjugal kindness of marital relations resulting in some actual conduct which materially
affects it.
1723
which prohibits acts of oppression by either capital or labor against the other
1724
supra
1725
See no. 2-5, below
1726
Aquino, T., Torts and Damages, 2005, Second Ed., p. 480
The Family Code imposes on the spouses the obligation to live together, observe mutual love,
respect and fidelity, and render mutual help and support (Art. 68). Interference with such may
result in the tort liability of alienation of affection.
398
b. Loss of consortium
The loss of conjugal fellowship and the impairment or destruction of sexual life.
A spouse has a legal obligation to live with his or her spouse. If a spouse
does not perform his or her duty to the other, he may be held liable for damages for such
omission because the same is contrary to law, morals and good customs.
c. Criminal conversation1727
Committed by the married woman who shall have sexual intercourse with a man
not her husband, and by him who has carnal knowledge of her knowing that she is married,
although the marriage be afterwards declared void.1728
3. Social Relations
Meddling with or disturbing the private life or family relations of another" and
"similar acts", "though they may not constitute a criminal offense, shall produce a cause of
action for damages, prevention and other relief.
4. Economic Relations
Any third person who induces another to violate his contract shall be liable
for damages to the other contracting parties.1730
The existence of a contract is necessary and the breach must occur because of the
alleged act of interference; No action can be maintained if the contract is void.1731
1727
Adultery
1728
Art. 333, RPC
Liability for adultery or concubinage based on the law on torts: not only moral damages but
also for other appropriate damages.
1729
Pineda, 2004
1730
Art. 1314
1731
Malice is not essential.
Rule under Article 2201 and 2202 Civil Code
1) If in bad faith: defendant is liable for all natural and probable consequences of his act or omission,
whether the same is foreseen or unforeseen.
399
b. Unfair competition
5. Political Relations
Any public officer or employee, or any private individual, who directly or indirectly
obstructs, defeats, violates or in any manner impedes or impairs any of the following rights
and liberties of another person shall be liable to the latter for damages:
2) If in good faith: defendant is liable only for consequences that can be foreseen
1732
Article 27
For a defendant to be liable, the plaintiff must show that the formers conduct was purely malicious
and served no legitimate purpose, or that any trade or competitive motive was absent.
Cases included:
a. passing off and disparagement of products
b. interference
c. misappropriation
d. monopolies and predatory pricing
1733
see b (5), below
400
(12) The right to become a member of associations or societies for purposes not
contrary to law;
(13) The right to take part in a peaceable assembly to petition the Government for
redress of grievances;
(14) The right to be free from involuntary servitude in any form;
(15) The right of the accused against excessive bail;
(16) The right of the accused to be heard by himself and counsel, to be informed of
the nature and cause of the accusation against him, to have a speedy and public trial, to meet
the witnesses face to face, and to have compulsory process to secure the attendance of
witness in his behalf;
(17) Freedom from being compelled to be a witness against one's self, or from being
forced to confess guilt, or from being induced by a promise of immunity or reward to make
such confession, except when the person confessing becomes a State witness;
(18) Freedom from excessive fines, or cruel and unusual punishment, unless the
same is imposed or inflicted in accordance with a statute which has not been judicially
declared unconstitutional; and
(19) Freedom of access to the courts.1734
6. Defenses
a. Absence of element
Defendant may not avail of any of the defenses if there is an absence of element.
The defendant is free from liability if he can prove that at the time of the commi
ssion, the plaintiff knew of the act of interference or omission.
b. Privilege
1. Consent
Plaintiff gives permission, express or implied, that what would otherwise be tortious
is instead privileged.
Typically, one cannot hold another liable in tort for actions to which one has con
sented. This is frequently summarized by the phrase "volenti non fit injuria."1735 It operates
when the claimant either expressly or implicitly consents to the risk of loss or damage.
1734
Art. 32
1735
"to a willing person, no injury is done" or "no injury is done to a person who consents"
401
2. Self-defense and defense of others
Reasonable force can be used where one reasonably believes that such force is
necessary to protect oneself or a third party from immediate harm.1736
3. Necessity
Allows the defendant to interfere with the property interests of an innocent party in
order to avoid a greater injury.
4. Defense of property
An individual is privileged to use reasonable force to prevent a tort against her real
or personal property.
5. Authority of Law
Police, military, prison officials, regulatory inspectors, mental health workers, etc.
engaging in conduct that otherwise would be tortuous.
c. Prescription
To be valid and effective, must in the first place be couched in clear and unequivocal
terms which leave no doubt as to the intention of a person to give up a right or benefit
which legally pertains to him. A waiver may not casually be attributed to a person when the
terms thereof do not explicitly and clearly evidence an intent to abandon a right vested in
such person.
1736
threatened battery
1737
Art. 1146 (As amended by PD No. 1755, Dec. 24, 1980)
The four-year prescriptive period is reckoned from the date when the tortious act was committed.
But, according to the discovery rule: if the injury is discovered after the four-year period, the
reckoning point is the date of discovery and not the date of commission of the act.
1738
See also Persons, Waiver of Rights, supra
402
e. Force majeure
General rule:
It is a complete defense and a person is not liable if the cause of the damage is a
fortuitous event.
Exception:
It is merely a partial defense and the courts may mitigate the damages if the loss
would have resulted in any event.1739
VIII. Negligence
A. Concept
A reasonable man is deemed to have knowledge of the facts that a man should be
expected to know based on ordinary human experience.1743
The Supreme Court described a good father of a family by first stating who is
not. He is not and is not supposed to be omniscient of the future; rather, he is one
who takes precautions against any harm when there is something before him to suggest or
warn him of the danger or to foresee it.1744
1739
Art. 2215(4)
No person shall be responsible for those events which cannot be foreseen, or which through foreseen
were inevitable.
Exception: assumption of risk
1740
Art. 1173
1741
Philippine Bank of Commerce v. CA, 336 Phil. 667, 676 (1997)
1742
The only standard of conduct used in the Philippines (Art. 1173)
1743
PNR v. IAC, G.R. No. 7054, Jan. 22, 1993
1744
Picart v. Smith, G.R. No. L12406, Mar. 15, 1918
403
C. Standard of Care
If the law or contract does not state the diligence which is to be observed in the
performance, that which is expected of a good father of a family shall be required.
2. Emergency Rule1745
One who suddenly finds himself in a place of danger, and is required to act without
time to consider the best means that may be adopted to avoid the impending danger, is not
guilty of negligence, if he fails to adopt what subsequently and upon reflection may appear to
have been a better method, unless the emergency in which he finds himself is brought about
by his own negligence.1746
If the risk is of such magnitude as to outweigh what the law regards as the utility of
the act.
1. Time
2. Place
3. Emergency
4. Gravity of harm to be avoided
5. Alternative course of action
6. Social value or utility of activity
7. Person exposed to the risk
E. Evidence
1745
Applicable only to situations that are sudden and unexpected such as to deprive actor of all
opportunity for deliberation
But action must still be judged by the standard of the ordinary prudent man
Absence of foreseeability
An individual will nevertheless be subject to liability if the emergency was brought about by his own
negligence (Valenzuela v. CA, 253 SCRA 303)
1746
Emergency rule exempts common carriers
1747
Rule 133, RoC
Exception:
When the rules or the law provides for cases when negligence is presumed.
404
F. Presumption of Negligence
1. Legal Provisions
In motor vehicle mishaps, the owner is presumed negligent if he was in the vehicle
and he could have used due diligence to prevent the misfortune.
It is disputably presumed that a driver was negligent if he had been found guilty of
reckless driving or violating traffic regulations at least twice for the next preceding two
months.1748
The driver of a motor vehicle is presumed negligent if at the time of the mishap, he
was violating any traffic regulation.1749
Prima facie presumption of negligence of the defendant arises if death or injury results
from his possession of dangerous weapons or substance except when such possession or use
is indispensable to his occupation or business.1750
It is a rule of evidence peculiar to the law of negligence which recognizes that prima
facie negligence may be established in the absence of direct proof, and furnishes a substitute
for specific proof of negligence.
1748
Art. 2184
1749
Art. 2185
1750
Art. 2188
Proof of possession of dangerous weapons or substances required.
1751
Requisites:
1. The accident was of a kind which ordinarily does not occur in the absence of someones
negligence;
2. The instrumentality which caused the injury was under the exclusive control and management of
the person charged with negligence; and
3. The injury suffered must not have been due to any voluntary action or contribution on the part of
the person injured; absence of explanation by the defendant.
The doctrine is not applicable if there is direct proof of absence or presence of negligence. (S.D.
Martinez, et al vs. William Van Buskirk)
405
G. Defenses
1. Complete1752
a. Absence of element
d. Authority of law
e. Assumption of risk1756
One is not legally injured if he has consented to the act complained of or was willing
that it should occur.
1752
They are called complete defenses because they completely bar recovery as opposed to
partial defenses which only serve to mitigate liability.
1753
supra
1754
ibid.
1755
Literal translation: Damage without injury
Consequences must be borne by the injured alone
1756
Doctrine of Assumption of Risk
Intentional exposure to a known danger.
One who voluntarily assumed the risk of an injury from a known danger cannot recover in an action for
negligence or an injury is incurred.
Plaintiffs acceptance of risk (by law/contract/nature of obligation) has erased defendants duty so that
his negligence is not a legal wrong.
Applies to all known danger.
406
There is assumption of risk if the plaintiff in advance has expressly waived his right
to recover damages for the negligent act of the defendant.1757
g. Prescription
The following actions must be brought within ten (10) years from the time the right
of action accrues:
The time for prescription for all kinds of actions, when there is no special provision
which ordains otherwise, shall be counted from the day they may be brought.1761
h. Waiver
A person cannot contract away his right to recover damages resulting from
negligence. Such waiver is contrary to public policy and cannot be allowed. However, the
waiver contemplated by this prohibition is the waiver of the right to recover before the
negligent act was committed.
If waiver was made after the cause of action accrued, the waiver is valid and may be
construed as a condonation of the obligation.
i. Double recovery
The plaintiff cannot recover damages twice for the same act or omission of the
defendant.1762
1757
A person cannot contract away his right to recover damages resulting from negligence; the same is
contrary to public policy (Pleasantville Dev't. Corp vs. CA ,253 SCRA 10)
1758
supra
1759
Art. 1144
1760
Art. 1146
1761
Art. 1150
1762
Art. 2177
407
IX. Special Liability in Particular Activities
A. General
1. Concept
B. Products Liability1763
1. Manufacturers or Processors
a. Elements
Any Filipino or foreign manufacturer, producer, and any importer, shall be liable for
redress, independently of fault, for damages caused to consumers by defects resulting from
design, manufacture, construction, assembly and erection, formulas and handling and
making up, presentation or packing of their products, as well as for the insufficient or
inadequate information on the use and hazards thereof.
A product is defective when it does not offer the safety rightfully expected of it,
taking relevant circumstances into consideration, including but not limited to:
a) presentation of product;
b) use and hazards reasonably expected of it;
c) the time it was put into circulation.
A product is not considered defective because another better quality product has
been placed in the market.
1763
Law which governs the liability of manufacturers and sellers for damages resulting from defective
products. It is meant to protect the consumers by providing safeguards when they purchase or use
consumer products (Aquino, T., Torts and Damages, 2005, Second Ed.)
Based on fraud, warranty, negligence or strict liability
1764
R.A. 7394
408
The manufacturer, builder, producer or importer shall not be held liable when it
evidences:
The service supplier is liable for redress, independently of fault, for damages caused
to consumers by defects relating to the rendering of the services, as well as for insufficient or
inadequate information on the fruition and hazards thereof.
The service is defective when it does not provide the safety the consumer may
rightfully expect of it, taking the relevant circumstances into consideration, including but not
limited to:
The supplier of the services shall not be held liable when it is proven:
The suppliers of durable or nondurable consumer products are jointly liable for
imperfections in quality that render the products unfit or inadequate for consumption for
which they are designed or decrease their value, and for those resulting from inconsistency
with the information provided on the container, packaging, labels or publicity
1765
Art. 97
1766
Art. 98
1767
Art. 99
409
messages/advertisement, with due regard to the variations resulting from their nature, the
consumer being able to demand replacement to the imperfect parts.
If the imperfection is not corrected within thirty (30) days, the consumer may
alternatively demand at his option:
a) the replacement of the product by another of the same kind, in a perfect state of
use;
b) the immediate reimbursement of the amount paid, with monetary updating,
without prejudice to any losses and damages;
c) a proportionate price reduction.
The parties may agree to reduce or increase the term specified in the immediately
preceding paragraph; but such shall not be less than seven (7) nor more than one hundred
and eighty (180) days.
The consumer may make immediate use of the foregoing alternatives when by virtue
of the extent of the imperfection, the replacement of the imperfect parts may jeopardize the
product quality or characteristics, thus decreasing its value.
If the consumer opts for the alternative under sub-paragraph (a) and replacement of
the product is not possible, it may be replaced by another of a different kind, mark or model.
Any difference in price that may result thereof shall be supplemented or reimbursed by the
party which caused the damage, without prejudice to the provisions of the second, third and
fourth paragraphs.1768
Suppliers are jointly liable for imperfections in the quantity of the product when, in
due regard for variations inherent thereto, their net content is less than that indicated on the
container, packaging, labeling or advertisement, the consumer having powers to demand,
alternatively, at his own option:
The provisions of the fifth paragraph of Article 99 shall apply to this Article. The
immediate supplier shall be liable if the instrument used for weighing or measuring is not
gauged in accordance with official standards.1769
1768
Art. 100
1769
Art. 101
410
The service supplier is liable for any quality imperfections that render the services
improper for consumption or decrease their value, and for those resulting from
inconsistency with the information contained in the offer or advertisement, the consumer
being entitled to demand alternatively at his option:
a) the performance of the services, without any additional cost and when applicable;
b) the immediate reimbursement of the amount paid, with monetary updating
without prejudice to losses and damages, if any;
c) a proportionate price reduction.
Improper services are those which prove to be inadequate for purposes reasonably
expected of them and those that fail to meet the provisions of this Act regulating service
rendering.1770
When services are provided for the repair of any product, the supplier shall be
considered implicitly bound to use adequate, new, original replacement parts, or those that
maintain the manufacturer's technical specifications unless, otherwise authorized, as regards
to the latter by the consumer.1771
The legal guarantee of product or service adequacy does not require an express
instrument or contractual exoneration of the supplier being forbidden.1773
Any person who shall violate any provision of this Chapter or its implementing rules
and regulations with respect to any consumer product which is not food, cosmetic, or
hazardous substance shall upon conviction, be subject to a fine of not less than Five
1770
Art. 102
1771
Art. 103
1772
Art. 104
1773
Art. 105
1774
Art. 106
411
thousand pesos (P5,000.00) and by imprisonment of not more than one (1) year or both
upon the discretion of the court.
In case of juridical persons, the penalty shall be imposed upon its president, manager
or head. If the offender is an alien, he shall, after payment of fine and service of sentence, be
deported without further deportation proceedings.1775
C. Nuisance1776
Public Private
3. Attractive Nuisance
1775
Art. 107
1776
For definition, see Art. 694, supra
1777
Doctrine of Attractive Nuisance
1778
It is not necessary that the defendant should have acted with malice/bad faith to be liable.
1779
supra, under Political Relations
1780
Ibid.
412
F. Provinces, Cities and Municipalities
Provinces, cities and municipalities shall be liable for damages for the death of, or
injuries suffered by any person by reason of the defective condition of roads, streets, bridges,
public buildings and other public works under their control and supervision.1781
In motor vehicle mishap, the owner is solidarily liable with his driver, if the former,
who was in the vehicle, could have by the use of due diligence, prevented the misfortune. It
is disputably presumed that a driver was negligent, if he had been found guilty of reckless
driving or violating traffic regulations at least twice within the next preceding two
months.
If the owner was not in the motor vehicle, the provisions of Article 2180 are
applicable.1782
(1) By the explosion of machinery which has not been taken cared of with due
diligence, and the inflammation of explosive substances which have not been kept in
a safe and adequate place;
(3) By the falling of trees situated at or near highways or lanes, if not caused by force
majeure;
If damages referred to in Articles 2190 and 2191 1785 should be the result of any
defect in the construction mentioned in Article 1723,1786 the third person suffering damages
1781
Art. 2189
1782
Art. 2184
1783
Art. 2190
Third persons who suffered damages may proceed only against the engineer or architect or contractor
if the damage referred to in Articles 2190 and 2191should be a result of any defect in construction.
Nevertheless, actions for damages can still be maintained under Article 2176 for damages resulting
from proprietors failure to exercise due care in the maintenance of his building and that he used his
property in such a way that he injured the property of another.
1784
Art. 2191
413
may proceed only against the engineer or architect or contractor in accordance with said
article, within the period therein fixed.1787
I. Head of Family
The head of a family that lives in a building or a part thereof, is responsible for
damages caused by things thrown or falling from the same.1788
X. Strict Liability1789
A. Animals
General rule: The possessor of an animal or whoever may make use of the same is
responsible for the damages which it may cause although it may escape or be lost.
Exception: When the damage was caused by force majeure or by the person who
suffered the damage.1790
B. Nuisance
1. Classes
b) Public or Private1791
Every building or piece of land is subject to the easement which prohibits the
proprietor or possessor from committing nuisance through noise, jarring, offensive
odor, smoke, heat, dust, water, glare and other causes.1792
1785
supra
1786
See Reference
1787
Art. 2192
1788
Art. 2193
1789
When the person is made liable independent of fault or negligence upon submission of proof of
certain facts specified by law.
Strict liability tort can be committed even if reasonable care was exercised and regardless of the state
of mind of the actor at that time.
1790
Art. 2183
1791
supra
1792
Art. 682
414
Subject to zoning, health, police and other laws and regulations, factories and
shops may be maintained provided the least possible annoyance is caused to the
neighborhood.1793
C. Products Liability
1. Consumer Act1794
1793
Art. 683
1794
supra
415
BOOK II DAMAGES1795
I. General Considerations
A. Classification
2. According to purpose
Temperate or moderate damages, which are more than nominal but less than
compensatory damages, may be recovered when the court finds that some pecuniary loss has
1795
General Principles of Damages:
1. The amount should be fair and just and commensurate to the damage.
2. Damage and the amount must be proven by competent evidence. Competent means that it
is admissible.
3. Only proximate damages, not remote or speculative, can be recovered.
1796
Art. 2205
1797
Art. 2220
1798
Art. 2221
416
been suffered but its amount cannot, from the nature of the case, be provided with
certainty.1799
Liquidated damages are those agreed upon by the parties to a contract, to be paid in
case of breach thereof.1800
Special Ordinary
Those which arise directly but not necessarily Those which necessarily and by implication
or by implication of law, from the act or of law result from the act or default
default complained of. These are super complained of.
added to ordinary damages, arising from an
act injurious in itself, as when some
particular loss arises from the uttering of
slanderous words, actionable in themselves,
or such as arise from an act indifferent and
not actionable in itself, but injurious only in
its consequences as when the words become
actionable only by reason of special damages
insuing.1803
1799
Art. 2224
1800
Art. 2226
1801
Art. 2229
1802
Art. 2216
1803
Bouviers Dictionary, p. 750
417
II. Actual and Compensatory Damages
A. Concept
Comprehends not only the value of the loss suffered but also that of the profits
which the obligee failed to obtain.1804
B. Requisites
Actual damages must be proved and a court cannot rely on speculation, conjecture
or guesswork as to the fact and amount of damages, but must depend on actual proof that
damages had been suffered and on evidence of the actual amount.1806
2. Not speculative
C. Component Elements
They are actual damages. It is due to the plaintiff and not to the counsel.
Plaintiff must allege the basis of his claim for attorneys fees in the complaint; the
basis should be one of the 11 cases specified in Article 22081807 of the Civil Code.
1804
Art. 2200
1805
Malonzo vs. Galang, 109 Phil. 16
1806
Rangas vs. Raya, 22 SCRA 839
1807
See Reference
418
3. Interest
a. The interest due should be that which may have been stipulated in
writing; furthermore, the interest due shall itself earn legal interest from
the time it is judicially demanded.
b. In the absence of stipulation, the rate of interest shall be 12% per annum
to be computed from default.1809
Where the demand is established with reasonable certainty, the interest shall begin to
run from the time the claim is made judicially or extrajudicially.
3. When the judgment of the court awarding the sum of money becomes final and
executory, the rate of legal interest shall be 12% per annum from such finality until its
satisfaction.
The damages for which the obligor who acted in good faith is liable shall be those
that are the natural and probable consequences of the breach of the obligation, and which
the parties have foreseen or could have reasonably foreseen at the time the obligation was
constituted.
In case of fraud, bad faith, malice or wanton attitude, the obligor shall be responsible
for all damages which may be reasonably attributed to the non-performance of the
obligation.1810
1808
i.e., a loan or forbearance of money
1809
i.e., from judicial or extra-judicial demand under and subject to the provisions of Article 1169 of the
Civil Code.
1810
Art. 2201
419
2. In crimes and quasi-delicts
The defendant shall be liable for all damages which are the natural and probable
consequences of the act and omission complained of. It is not necessary that such damages
have been foreseen or could have reasonably foreseen by the defendant.1811
The amount should be that which would put plaintiff in the same position as he
would have been if he had not sustained the wrong for which he is now getting his
compensation or reparation.
To recover damages, the amount of loss must not only be capable of proof but must
actually be proven.
A. Concept
Moral damages include physical suffering, mental anguish, fright, serious anxiety,
besmirched reputation, wounded feelings, moral shock, social humiliation, and similar injury.
Though incapable of pecuniary computation, moral damages may be recovered if they are
the proximate result of the defendant's wrongful act for omission.1812
B. When recoverable
In construing and applying this Article, the provisions of Article 2200 must be considered and taken
into account.
1811
Art. 2202
1812
Art. 2217
1813
Art. 2218
420
(8) Malicious prosecution;
(9) Acts mentioned in Article 309;1814
(10) Acts and actions referred to in Articles 21, 26, 27, 28, 29, 30, 32, 34, and 35.1815
The parents of the female seduced, abducted, raped, or abused, referred to in No. 3
of this article, may also recover moral damages.
The spouse, descendants, ascendants, and brothers and sisters may bring the action
mentioned in No. 9 of this article, in the order named.1816
Willful injury to property may be a legal ground for awarding moral damages if the
court should find that, under the circumstances, such damages are justly due. The same rule
applies to breaches of contract where the defendant acted fraudulently or in bad faith.1817
2. In acts referred to in Arts. 21, 26, 27, 28, 29, 32, 34 &
35, NCC1818
A. Concept
Small sums fixed by the court without regard to the extent of the harm done to the
injured party.
Law presumes damage although actual or compensatory damages are not proven.
They are damages in name only and are allowed simply in recognition of a technical
injury based on a violation of a legal right.
1814
Any person who shows disrespect to the dead, or wrongfully interferes with a funeral shall be liable to
the family of the deceased for damages, material and moral.
1815
See reference
1816
Art. 2219
1817
Art. 2220
1818
See Reference
1819
supra
421
B. When awarded
Nominal damages are adjudicated in order that a right of the plaintiff, which has
been violated or invaded by the defendant, may be vindicated or recognized, and not for the
purpose of indemnifying the plaintiff for any loss suffered by him.1820
A. Concept
These are damages, which are more than nominal but less than compensatory, and
may be recovered when the court finds that some pecuniary loss has been suffered but its
amount cannot be proved with certainty.1821
B. When awarded
In cases where the resulting injury might be continuing and possible future
complications directly arising from the injury, while certain to occur are difficult to predict,
temperate damages can and should be awarded on top of actual or compensatory damages;
in such cases there is no incompatibility between actual and temperate damages.
A. Concept
Interest may, in the discretion of the court, be allowed upon damages awarded for
breach of contract.1823
1820
Art. 2221
1821
Article 2224 Civil Code
1822
Art. 2226
1823
Art. 2210
422
VII. Exemplary or Corrective Damages
A. Concept
Imposed, by way of example or correction for the public good, in addition to the
moral, temperate, liquidated or compensatory damages.1824
B. When recovered
1. In criminal offenses
When the crime was committed with one or more aggravating circumstances. Such
damages are separate and distinct from fines and shall be paid to the offended party.1825
2. In quasi-delicts
C. Requisites
Exemplary damages cannot be recovered as a matter of right; the court will decide
whether or not they should be adjudicated.1828
While the amount of the exemplary damages need not be proved, the plaintiff must
show that he is entitled to moral, temperate or compensatory damages before the court may
consider the question of whether or not exemplary damages should be awarded. In case
liquidated damages have been agreed upon, although no proof of loss is necessary in order
that such liquidated damages may be recovered, nevertheless, before the court may consider
the question of granting exemplary in addition to the liquidated damages, the plaintiff must
show that he would be entitled to moral, temperate or compensatory damages were it not
for the stipulation for liquidated damages.1829
1824
Art. 2229
1825
Art. 2230
1826
Art. 2231
1827
Art. 2232
1828
Art. 2233
1829
Art. 2234
423
VIII. Damages in Case of Death
The amount of damages for death caused by a crime or quasi-delict shall be at least
three thousand pesos,1830 even though there may have been mitigating circumstances.
In addition:
(1) The defendant shall be liable for the loss of the earning capacity of the deceased,
and the indemnity shall be paid to the heirs of the latter; such indemnity shall in every case
be assessed and awarded by the court, unless the deceased on account of permanent physical
disability not caused by the defendant, had no earning capacity at the time of his death;
(2) If the deceased was obliged to give support according to the provisions of article
291, the recipient who is not an heir called to the decedent's inheritance by the law of testate
or intestate succession, may demand support from the person causing the death, for a period
not exceeding five years, the exact duration to be fixed by the court;
(3) The spouse, legitimate and illegitimate descendants and ascendants of the
deceased may demand moral damages for mental anguish by reason of the death of the
deceased.1831
1830
As of 2008, it is P75,000 (People vs. Robert Brodett y Pajaro, Jan. 18, 2008)
1831
Art. 2206
Damages recoverable in case of death:
1. Medical & Hospital Bills
2. Damages for death
a. Minimum amount: P50,000
b. Loss of earning capacity unless deceased had permanent physical disability not caused by
defendant so that deceased had no earning capacity at time of death
c. Support, if deceased was obliged to give support (for period not more than 5 years)
d. Moral damages
424
IX. Graduation of Damages
The party suffering loss or injury must exercise the diligence of a good father of a
family to minimize the damages resulting from the act or omission in question.1832
B. Rules
1. In crimes
2. In quasi-delict
The contributory negligence of the plaintiff shall reduce the damages that he may
recover.1834
The court may equitably mitigate the damages, as in the following instances:
(5) Since the filing of the action, the defendant has done his best to lessen the
plaintiff's loss or injury.1835
4. Liquidated damages
1832
Art. 2203
1833
Art. 2204
1834
Art. 2214
1835
Art. 2215
1836
Art. 2227
425
5. Compromise
The courts may mitigate the damages to be paid by the losing party who has shown
a sincere desire for a compromise.1837
X. Miscellaneous Rules
The adjudication of nominal damages shall preclude further contest upon the right
involved and all accessory questions, as between the parties to the suit, or their respective
heirs and assigns.1838
Liquidated damages are those agreed upon by the parties to a contract, to be paid in
case of breach thereof.1839
1. Nominal Damages1841
1837
Art. 2031
1838
Art. 2223
1839
Art. 2226
1840
supra
1841
Ibid.
426
REFERENCE
Civil Code
Article 21. Any person who wilfully causes loss or injury to another in manner that is
contrary to morals, good customs or public policy shall compensate the latter for the damage.
Article 26. Every person shall respect the dignity, personality, privacy and peace of mind of
his neighbors and other persons. The following and similar acts, though they may not constitute a
criminal offense, shall produce a cause of action for damages, prevention and other relief:
(2) Meddling with or disturbing the private life or family relations of another;
(4) Vexing or humiliating another on account of his religious beliefs, lowly station in life,
place of birth, physical defect, or other personal condition.
Article 27. Any person suffering material or moral loss because a public servant or employee
refuses or neglects, without just cause, to perform his official duty may file an action for damages and
other relief against the latter, without prejudice to any disciplinary administrative action that may be
taken.
Article 29. When the accused in a criminal prosecution is acquitted on the ground that his
guilt has not been proved beyond reasonable doubt, a civil action for damages for the same act or
omission may be instituted. Such action requires only a preponderance of evidence. Upon motion of
the defendant, the court may require the plaintiff to file a bond to answer for damages in case the
complaint should be found to be malicious.
If in a criminal case the judgment of acquittal is based upon reasonable doubt, the court shall
so declare. In the absence of any declaration to that effect, it may be inferred from the text of the
decision whether or not the acquittal is due to that ground.
Art. 30. When a separate civil action is brought to demand civil liability arising from a
criminal offense, and no criminal proceedings are instituted during the pendency of the civil case, a
preponderance of evidence shall likewise be sufficient to prove the act complained of.
Art. 32. Any public officer or employee, or any private individual, who directly or indirectly
obstructs, defeats, violates or in any manner impedes or impairs any of the following rights and
liberties of another person shall be liable to the latter for damages:
427
(3) Freedom to write for the press or to maintain a periodical publication
(6) The right against deprivation of property without due process of law;
(7) The right to a just compensation when private property is taken for public use
(9) The right to be secure in one's person, house, papers, and effects against unreasonable
searches and seizures;
(12) The right to become a member of associations or societies for purposes not contrary
to law;
(13) The right to take part in a peaceable assembly to petition the government for redress
of grievances;
(16) The right of the accused to be heard by himself and counsel, to be informed of the
nature and cause of the accusation against him, to have a speedy and public trial, to meet the
witnesses face to face, and to have compulsory process to secure the attendance of witness in his
behalf;
(17) Freedom from being compelled to be a witness against one's self, or from being forced
to confess guilt, or from being induced by a promise of immunity or reward to make such
confession, except when the person confessing becomes a State witness;
(18) Freedom from excessive fines, or cruel and unusual punishment, unless the same is
imposed or inflicted in accordance with a statute which has not been judicially declared
unconstitutional; and
In any of the cases referred to in this article, whether or not the defendant's act or omission
constitutes a criminal offense, the aggrieved party has a right to commence an entirely separate and
distinct civil action for damages, and for other relief. Such civil action shall proceed independently of
any criminal prosecution (if the latter be instituted), and mat be proved by a preponderance of
evidence.
428
The indemnity shall include moral damages. Exemplary damages may also be adjudicated.
The responsibility herein set forth is not demandable from a judge unless his act or omission
constitutes a violation of the Penal Code or other penal statute.
Article 33. In cases of defamation, fraud, and physical injuries a civil action for damages,
entirely separate and distinct from the criminal action, may be brought by the injured party. Such civil
action shall proceed independently of the criminal prosecution, and shall require only a
preponderance of evidence.
Article 34. When a member of a city or municipal police force refuses or fails to render aid
or protection to any person in case of danger to life or property, such peace officer shall be primarily
liable for damages, and the city or municipality shall be subsidiarily responsible therefor. The civil
action herein recognized shall be independent of any criminal proceedings, and a preponderance of
evidence shall suffice to support such action.
Article 35. When a person, claiming to be injured by a criminal offense, charges another with
the same, for which no independent civil action is granted in this Code or any special law, but the
justice of the peace finds no reasonable grounds to believe that a crime has been committed, or the
prosecuting attorney refuses or fails to institute criminal proceedings, the complaint may bring a civil
action for damages against the alleged offender. Such civil action may be supported by a
preponderance of evidence. Upon the defendant's motion, the court may require the plaintiff to file a
bond to indemnify the defendant in case the complaint should be found to be malicious.
If during the pendency of the civil action, an information should be presented by the
prosecuting attorney, the civil action shall be suspended until the termination of the criminal
proceedings.
Article 294. The claim for support, when proper and two or more persons are obliged to
give it, shall be made in the following order:
Among descendants and ascendants the order in which they are called to the intestate
succession of the person who has a right to claim support shall be observed
Art. 391. The following shall be presumed dead for all purposes, including the division of
the estate among the heirs:
(1) A person on board a vessel lost during a sea voyage, or an aeroplane which is missing,
who has not been heard of for four years since the loss of the vessel or aeroplane;
(2) A person in the armed forces who has taken part in war, and has been missing for four
years;
429
(3) A person who has been in danger of death under other circumstances and his existence
has not been known for four years.
Article 443. He who receives the fruits has the obligation to pay the expenses made by a
third person in their production, gathering, and preservation
Article 537. Acts merely tolerated, and those executed clandestinely and without the
knowledge of the possessor of a thing, or by violence, do not affect possession
Article 546. Necessary expenses shall be refunded to every possessor; but only the possessor
in good faith may retain the thing until he has been reimbursed therefor.
Useful expenses shall be refunded only to the possessor in good faith with the same right of
retention, the person who has defeated him in the possession having the option of refunding the
amount of the expenses or of paying the increase in value which the thing may have acquired by
reason thereof
Article 559. The possession of movable property acquired in good faith is equivalent to a
title. Nevertheless, one who has lost any movable or has been unlawfully deprived thereof, may
recover it from the person in possession of the same.
If the possessor of a movable lost or which the owner has been unlawfully deprived, has
acquired it in good faith at a public sale, the owner cannot obtain its return without reimbursing the
price paid therefor.
Article 649. The owner, or any person who by virtue of a real right may cultivate or use any
immovable, which is surrounded by other immovables pertaining to other persons and without
adequate outlet to a public highway, is entitled to demand a right of way through the neighboring
estates, after payment of the proper indemnity.
Should this easement be established in such a manner that its use may be continuous for all
the needs of the dominant estate, establishing a permanent passage, the indemnity shall consist of the
value of the land occupied and the amount of the damage caused to the servient estate.
In case the right of way is limited to the necessary passage for the cultivation of the estate
surrounded by others and for the gathering of its crops through the servient estate without a
permanent way, the indemnity shall consist in the payment of the damage caused by such
encumbrance.
This easement is not compulsory if the isolation of the immovable is due to the proprietor's
own acts.
Article 670. No windows, apertures, balconies, or other similar projections which afford a
direct view upon or towards an adjoining land or tenement can be made, without leaving a distance
of two meters between the wall in which they are made and such contiguous property.
Neither can side or oblique views upon or towards such conterminous property be had,
unless there be a distance of sixty centimeters.
430
Art. 688. Every owner of a tenement or piece of land may establish thereon the easements
which he may deem suitable, and in the manner and form which he may deem best, provided he does
not contravene the laws, public policy or public order.
Article 750. The donation may comprehend all the present property of the donor, or part
thereof, provided he reserves, in full ownership or in usufruct, sufficient means for the support of
himself, and of all relatives who, at the time of the acceptance of the donation, are by law entitled to
be supported by the donor. Without such reservation, the donation shall be reduced in petition of
any person affected
Article 760. Every donation inter vivos, made by a person having no children or
descendants, legitimate or legitimated by subsequent marriage, or illegitimate, may be revoked or
reduced as provided in the next article, by the happening of any of these events:
(1) If the donor, after the donation, should have legitimate or legitimated or illegitimate
children, even though they be posthumous;
(2) If the child of the donor, whom the latter believed to be dead when he made the
donation, should turn out to be living;
Article 911. After the legitime has been determined in accordance with the three preceding
articles, the reduction shall be made as follows:
(1) Donations shall be respected as long as the legitime can be covered, reducing or
annulling, if necessary, the devises or legacies made in the will;
(2) The reduction of the devises or legacies shall be pro rata, without any distinction
whatever.
If the testator has directed that a certain devise or legacy be paid in preference to others, it
shall not suffer any reduction until the latter have been applied in full to the payment of the legitime.
(3) If the devise or legacy consists of a usufruct or life annuity, whose value may be
considered greater than that of the disposable portion, the compulsory heirs may choose between
complying with the testamentary provision and delivering to the devisee or legatee the part of the
inheritance of which the testator could freely dispose. (820a)
Article 912. If the devise subject to reduction should consist of real property, which cannot
be conveniently divided, it shall go to the devisee if the reduction does not absorb one-half of its
value; and in a contrary case, to the compulsory heirs; but the former and the latter shall reimburse
each other in cash for what respectively belongs to them.
The devisee who is entitled to a legitime may retain the entire property, provided its value
does not exceed that of the disposable portion and of the share pertaining to him as legitime.
Article 919. The following shall be sufficient causes for the disinheritance of children and
descendants, legitimate as well as illegitimate:
431
(1) When a child or descendant has been found guilty of an attempt against the life of the
testator, his or her spouse, descendants, or ascendants;
(2) When a child or descendant 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;
(3) When a child or descendant has been convicted of adultery or concubinage with the
spouse of the testator;
(4) When a child or descendant by fraud, violence, intimidation, or undue influence causes
the testator to make a will or to change one already made;
(5) A refusal without justifiable cause to support the parent or ascendant who disinherits
such child or descendant;
(8) Conviction of a crime which carries with it the penalty of civil interdiction.
Art. 1030. Testamentary provisions in favor of the poor in general, without designation of
particular persons or of any community, shall be deemed limited to the poor living in the domicile of
the testator at the time of his death, unless it should clearly appear that his intention was otherwise.
The designation of the persons who are to be considered as poor and the distribution of the
property shall be made by the person appointed by the testator for the purpose; in default of such
person, by the executor, and should there be no executor, by the justice of the peace, the mayor, and
the municipal treasurer, who shall decide by a majority of votes all questions that may arise. In all
these cases, the approval of the Court of First Instance shall be necessary.
The preceding paragraph shall apply when the testator has disposed of his property in favor
of the poor of a definite locality
Article 1132. The ownership of movables prescribes through uninterrupted possession for
four years in good faith.
The ownership of personal property also prescribes through uninterrupted possession for
eight years, without need of any other condition.
With regard to the right of the owner to recover personal property lost or of which he has
been illegally deprived, as well as with respect to movables acquired in a public sale, fair, or market,
or from a merchant's store the provisions of articles 559 and 1505 of this Code shall be observed.
Article 1133. Movables possessed through a crime can never be acquired through
prescription by the offender.
Article 1140. Actions to recover movables shall prescribe eight years from the time the
possession thereof is lost, unless the possessor has acquired the ownership by prescription for a less
period, according to articles 1132, and without prejudice to the provisions of articles 559, 1505, and
1133.
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Article 1141. Real actions over immovables prescribe after thirty years.
This provision is without prejudice to what is established for the acquisition of ownership
and other real rights by prescription.
Article 1144. The following actions must be brought within ten years from the time the right
of action accrues:
Article 1145. The following actions must be commenced within six years:
Article 1146. The following actions must be instituted within four years:
However, when the action arises from or out of any act, activity, or conduct of any public
officer involving the exercise of powers or authority arising from Martial Law including the arrest,
detention and/or trial of the plaintiff, the same must be brought within one (1) year. (As amended by
PD No. 1755, Dec. 24, 1980.)
Article 1147. The following actions must be filed within one year:
Art. 1163. Every person obliged to give something is also obliged to take care of it with the
proper diligence of a good father of a family, unless the law or the stipulation of the parties requires
another standard of care. (1094a)
Art. 1164. The creditor has a right to the fruits of the thing from the time the obligation to
deliver it arises. However, he shall acquire no real right over it until the same has been delivered to
him. (1095)
Art. 1165. When what is to be delivered is a determinate thing, the creditor, in addition to
the right granted him by Article 1170, may compel the debtor to make the delivery.
If the thing is indeterminate or generic, he may ask that the obligation be complied with at
the expense of the debtor.
If the obligor delays, or has promised to deliver the same thing to two or more persons who
do not have the same interest, he shall be responsible for any fortuitous event until he has effected
the delivery
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Article 1170. Those who in the performance of their obligations are guilty of fraud,
negligence, or delay, and those who in any manner contravene the tenor thereof, are liable for
damages
Art. 1191. 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 the fulfillment and the rescission of the obligation,
with the payment of damages in either case. He may also seek rescission, even after he has chosen
fulfillment, if the latter should become impossible.
The court shall decree the rescission claimed, unless there be just cause authorizing the
fixing of a period.
This is understood to be without prejudice to the rights of third persons who have acquired
the thing, in accordance with Articles 1385 and 1388 and the Mortgage Law.
Article 1233. A debt shall not be understood to have been paid unless the thing or service in
which the obligation consists has been completely delivered or rendered, as the case may be. (1
Article 1248. Unless there is an express stipulation to that effect, the creditor cannot be
compelled partially to receive the prestations in which the obligation consists. Neither may the debtor
be required to make partial payments.
However, when the debt is in part liquidated and in part unliquidated, the creditor may
demand and the debtor may effect the payment of the former without waiting for the liquidation of
the latter.
Art. 1262. An obligation which consists in the delivery of a determinate thing shall be
extinguished if it should be lost or destroyed without the fault of the debtor, and before he has
incurred in delay.
When by law or stipulation, the obligor is liable even for fortuitous events, the loss of the
thing does not extinguish the obligation, and he shall be responsible for damages. The same rule
applies when the nature of the obligation requires the assumption of risk.
(2) Insane or demented persons, and deaf-mutes who do not know how to write
Article 1385. Rescission creates the obligation to return the things which were the object of
the contract, together with their fruits, and the price with its interest; consequently, it can be carried
out only when he who demands rescission can return whatever he may be obliged to restore.
Neither shall rescission take place when the things which are the object of the contract are
legally in the possession of third persons who did not act in bad faith.
In this case, indemnity for damages may be demanded from the person causing the loss.
Article 1388. Whoever acquires in bad faith the things alienated in fraud of creditors, shall
indemnify the latter for damages suffered by them on account of the alienation, whenever, due to any
cause, it should be impossible for him to return them.
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Art. 1490. The husband and the wife cannot sell property to each other, except:
(1) When a separation of property was agreed upon in the marriage settlements; or
(2) When there has been a judicial separation or property under Article 191. (1458a)
Art. 1491. The following persons cannot acquire by purchase, even at a public or judicial
auction, either in person or through the mediation of another:
(1) The guardian, the property of the person or persons who may be under his
guardianship;
(2) Agents, the property whose administration or sale may have been entrusted to them,
unless the consent of the principal has been given;
(3) Executors and administrators, the property of the estate under administration;
(4) Public officers and employees, the property of the State or of any subdivision thereof,
or of any government-owned or controlled corporation, or institution, the administration of which
has been intrusted to them; this provision shall apply to judges and government experts who, in any
manner whatsoever, take part in the sale;
(5) Justices, judges, prosecuting attorneys, clerks of superior and inferior courts, and other
officers and employees connected with the administration of justice, the property and rights in
litigation or levied upon an execution before the court within whose jurisdiction or territory they
exercise their respective functions; this prohibition includes the act of acquiring by assignment and
shall apply to lawyers, with respect to the property and rights which may be the object of any
litigation in which they may take part by virtue of their profession.
Art. 1497. The thing sold shall be understood as delivered, when it is placed in the control
and possession of the vendee. (1462a)
Art. 1498. When the sale is made through a public instrument, the execution thereof shall be
equivalent to the delivery of the thing which is the object of the contract, if from the deed the
contrary does not appear or cannot clearly be inferred.
With regard to movable property, its delivery may also be made by the delivery of the keys of
the place or depository where it is stored or kept.
Art. 1499. The delivery of movable property may likewise be made by the mere consent or
agreement of the contracting parties, if the thing sold cannot be transferred to the possession of the
vendee at the time of the sale, or if the latter already had it in his possession for any other reason.
Art. 1501. With respect to incorporeal property, the provisions of the first paragraph of
article 1498 shall govern. In any other case wherein said provisions are not applicable, the placing of
the titles of ownership in the possession of the vendee or the use by the vendee of his rights, with the
vendor's consent, shall be understood as a delivery. (1464)
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Article 1505. Subject to the provisions of this Title, where goods are sold by a person who is
not the owner thereof, and who does not sell them under authority or with the consent of the owner,
the buyer acquires no better title to the goods than the seller had, unless the owner of the goods is by
his conduct precluded from denying the seller's authority to sell.
(1) The provisions of any factors' act, recording laws, or any other provision of law enabling
the apparent owner of goods to dispose of them as if he were the true owner thereof;
(2) The validity of any contract of sale under statutory power of sale or under the order of a
court of competent jurisdiction;
(3) Purchases made in a merchant's store, or in fairs, or markets, in accordance with the
Code of Commerce and special laws
Art. 1526. Subject to the provisions of this Title, notwithstanding that the ownership in the
goods may have passed to the buyer, the unpaid seller of goods, as such, has:
(1) A lien on the goods or right to retain them for the price while he is in possession of
them;
(2) In case of the insolvency of the buyer, a right of stopping the goods in transitu after he
has parted with the possession of them;
Where the ownership in the goods has not passed to the buyer, the unpaid seller has, in
addition to his other remedies a right of withholding delivery similar to and coextensive with his
rights of lien and stoppage in transitu where the ownership has passed to the buyer.
Art. 1539. The obligation to deliver the thing sold includes that of placing in the control of
the vendee all that is mentioned in the contract, in conformity with the following rules:
If the sale of real estate should be made with a statement of its area, at the rate of a certain
price for a unit of measure or number, the vendor shall be obliged to deliver to the vendee, if the
latter should demand it, all that may have been stated in the contract; but, should this be not possible,
the vendee may choose between a proportional reduction of the price and the rescission of the
contract, provided that, in the latter case, the lack in the area be not less than one-tenth of that stated.
The same shall be done, even when the area is the same, if any part of the immovable is not
of the quality specified in the contract.
The rescission, in this case, shall only take place at the will of the vendee, when the inferior
value of the thing sold exceeds one-tenth of the price agreed upon.
Nevertheless, if the vendee would not have bought the immovable had he known of its
smaller area of inferior quality, he may rescind the sale.
436
Art. 1542. In the sale of real estate, made for a lump sum and not at the rate of a certain sum
for a unit of measure or number, there shall be no increase or decrease of the price, although there
be a greater or less area or number than that stated in the contract.
The same rule shall be applied when two or more immovables as sold for a single price; but
if, besides mentioning the boundaries, which is indispensable in every conveyance of real estate, its
area or number should be designated in the contract, the vendor shall be bound to deliver all that is
included within said boundaries, even when it exceeds the area or number specified in the contract;
and, should he not be able to do so, he shall suffer a reduction in the price, in proportion to what is
lacking in the area or number, unless the contract is rescinded because the vendee does not accede to
the failure to deliver what has been stipulated.
Art. 1584. Where goods are delivered to the buyer, which he has not previously examined,
he is not deemed to have accepted them unless and until he has had a reasonable opportunity of
examining them for the purpose of ascertaining whether they are in conformity with the contract if
there is no stipulation to the contrary.
Unless otherwise agreed, when the seller tenders delivery of goods to the buyer, he is bound,
on request, to afford the buyer a reasonable opportunity of examining the goods for the purpose of
ascertaining whether they are in conformity with the contract.
Where goods are delivered to a carrier by the seller, in accordance with an order from or
agreement with the buyer, upon the terms that the goods shall not be delivered by the carrier to the
buyer until he has paid the price, whether such terms are indicated by marking the goods with the
words "collect on delivery," or otherwise, the buyer is not entitled to examine the goods before the
payment of the price, in the absence of agreement or usage of trade permitting such examination.
Art. 1596. Where the buyer wrongfully neglects or refuses to accept and pay for the goods,
the seller may maintain an action against him for damages for non-acceptance.
The measure of damages is the estimated loss directly and naturally resulting in the ordinary
course of events from the buyer's breach of contract.
Where there is an available market for the goods in question, the measure of damages is, in
the absence of special circumstances showing proximate damage of a different amount, the
difference between the contract price and the market or current price at the time or times when the
goods ought to have been accepted, or, if no time was fixed for acceptance, then at the time of the
refusal to accept.
If, while labor or expense of material amount is necessary on the part of the seller to enable
him to fulfill his obligations under the contract of sale, the buyer repudiates the contract or notifies
the seller to proceed no further therewith, the buyer shall be liable to the seller for labor performed
or expenses made before receiving notice of the buyer's repudiation or countermand. The profit the
seller would have made if the contract or the sale had been fully performed shall be considered in
awarding the damages.
Article 1608. The vendor may bring his action against every possessor whose right is derived
from the vendee, even if in the second contract no mention should have been made of the right to
repurchase, without prejudice to the provisions of the Mortgage Law and the Land Registration Law
with respect to third persons
437
Article 1652. The sublessee is subsidiarily liable to the lessor for any rent due from the lessee.
However, the sublessee shall not be responsible beyond the amount of rent due from him, in
accordance with the terms of the sublease, at the time of the extra-judicial demand by the lessor.
Payments of rent in advance by the sublessee shall be deemed not to have been made, so far
as the lessor's claim is concerned, unless said payments were effected in virtue of the custom of the
place.
Article 1723. The engineer or architect who drew up the plans and specifications for a
building is liable for damages if within fifteen years from the completion of the structure, the same
should collapse by reason of a defect in those plans and specifications, or due to the defects in the
ground. The contractor is likewise responsible for the damages if the edifice falls, within the same
period, on account of defects in the construction or the use of materials of inferior quality furnished
by him, or due to any violation of the terms of the contract. If the engineer or architect supervises
the construction, he shall be solidarily liable with the contractor.
Acceptance of the building, after completion, does not imply waiver of any of the cause of
action by reason of any defect mentioned in the preceding paragraph.
The action must be brought within ten years following the collapse of the building
Article 1729. Those who put their labor upon or furnish materials for a piece of work
undertaken by the contractor have an action against the owner up to the amount owing from the
latter to the contractor at the time the claim is made. However, the following shall not prejudice the
laborers, employees and furnishers of materials:
(1) Payments made by the owner to the contractor before they are due;
(2) Renunciation by the contractor of any amount due him from the owner.
Article 1731. He who has executed work upon a movable has a right to retain it by way of
pledge until he is paid.
Article 1892. The agent may appoint a substitute if the principal has not prohibited him from
doing so; but he shall be responsible for the acts of the substitute:
(2) When he was given such power, but without designating the person, and the person
appointed was notoriously incompetent or insolvent.
All acts of the substitute appointed against the prohibition of the principal shall be void.
(1721)
Article 1893. In the cases mentioned in Nos. 1 and 2 of the preceding article, the principal
may furthermore bring an action against the substitute with respect to the obligations which the latter
has contracted under the substitution.
438
Article 1994. The depositary may retain the thing in pledge until the full payment of what
may be due him by reason of the deposit
Art. 2202. In crimes and quasi-delicts, the defendant shall be liable for all damages which are
the natural and probable consequences of the act or omission complained of. It is not necessary that
such damages have been foreseen or could have reasonably been foreseen by the defendant.
Art. 2208. In the absence of stipulation, attorney's fees and expenses of litigation, other than
judicial costs, cannot be recovered, except:
(2) When the defendant's act or omission has compelled the plaintiff to litigate with third
persons or to incur expenses to protect his interest;
(4) In case of a clearly unfounded civil action or proceeding against the plaintiff;
(5) Where the defendant acted in gross and evident bad faith in refusing to satisfy the
plaintiff's plainly valid, just and demandable claim;
(7) In actions for the recovery of wages of household helpers, laborers and skilled workers;
(8) In actions for indemnity under workmen's compensation and employer's liability laws;
(9) In a separate civil action to recover civil liability arising from a crime;
(11) In any other case where the court deems it just and equitable that attorney's fees and
expenses of litigation should be recovered.
In all cases, the attorney's fees and expenses of litigation must be reasonable.
Family Code
Art. 15. Any contracting party between the age of twenty-one and twenty-five shall be
obliged to ask their parents or guardian for advice upon the intended marriage. If they do not obtain
such advice, or if it be unfavorable, the marriage license shall not be issued till after three months
following the completion of the publication of the application therefor. A sworn statement by the
contracting parties to the effect that such advice has been sought, together with the written advice
given, if any, shall be attached to the application for marriage license. Should the parents or guardian
refuse to give any advice, this fact shall be stated in the sworn statement. (62a)
Art. 16. In the cases where parental consent or parental advice is needed, the party or parties
concerned shall, in addition to the requirements of the preceding articles, attach a certificate issued by
a priest, imam or minister authorized to solemnize marriage under Article 7 of this Code or a
marriage counselor duly accredited by the proper government agency to the effect that the
439
contracting parties have undergone marriage counseling. Failure to attach said certificates of marriage
counseling shall suspend the issuance of the marriage license for a period of three months from the
completion of the publication of the application. Issuance of the marriage license within the
prohibited period shall subject the issuing officer to administrative sanctions but shall not affect the
validity of the marriage.
Should only one of the contracting parties need parental consent or parental advice, the
other party must be present at the counseling referred to in the preceding paragraph. (n)
Art. 27. In case either or both of the contracting parties are at the point of death, the
marriage may be solemnized without necessity of a marriage license and shall remain valid even if the
ailing party subsequently survives.
Art. 28. If the residence of either party is so located that there is no means of transportation
to enable such party to appear personally before the local civil registrar, the marriage may be
solemnized without necessity of a marriage license.
Art. 29. In the cases provided for in the two preceding articles, the solemnizing officer shall
state in an affidavit executed before the local civil registrar or any other person legally authorized to
administer oaths that the marriage was performed in articulo mortis or that the residence of either
party, specifying the barrio or barangay, is so located that there is no means of transportation to
enable such party to appear personally before the local civil registrar and that the officer took the
necessary steps to ascertain the ages and relationship of the contracting parties and the absence of
legal impediment to the marriage.
Art. 30. The original of the affidavit required in the last preceding article, together with the
legible copy of the marriage contract, shall be sent by the person solemnizing the marriage to the
local civil registrar of the municipality where it was performed within the period of thirty days after
the performance of the marriage.
Art. 31. A marriage in articulo mortis between passengers or crew members may also be
solemnized by a ship captain or by an airplane pilot not only while the ship is at sea or the plane is in
flight, but also during stopovers at ports of call.
Art. 32. A military commander of a unit, who is a commissioned officer, shall likewise have
authority to solemnize marriages in articulo mortis between persons within the zone of military
operation, whether members of the armed forces or civilians.
Art. 33. Marriages among Muslims or among members of the ethnic cultural communities
may be performed validly without the necessity of marriage license, provided they are solemnized in
accordance with their customs, rites or practices.
Art. 34. No license shall be necessary for the marriage of a man and a woman who have
lived together as husband and wife for at least five years and without any legal impediment to marry
each other. The contracting parties shall state the foregoing facts in an affidavit before any person
authorized by law to administer oaths. The solemnizing officer shall also state under oath that he
ascertained the qualifications of the contracting parties are found no legal impediment to the
marriage.
440
Art. 51. In said partition, the value of the presumptive legitimes of all common children,
computed as of the date of the final judgment of the trial court, shall be delivered in cash, property
or sound securities, unless the parties, by mutual agreement judicially approved, had already provided
for such matters.
The children or their guardian or the trustee of their property may ask for the enforcement
of the judgment.
The delivery of the presumptive legitimes herein prescribed shall in no way prejudice the
ultimate successional rights of the children accruing upon the death of either of both of the parents;
but the value of the properties already received under the decree of annulment or absolute nullity
shall be considered as advances on their legitime.
Art. 77. The marriage settlements and any modification thereof shall be in writing, signed by
the parties and executed before the celebration of the marriage. They shall not prejudice third
persons unless they are registered in the local civil registry where the marriage contract is recorded as
well as in the proper registries of properties.
Art. 102. Upon dissolution of the absolute community regime, the following procedure shall
apply:
(1) An inventory shall be prepared, listing separately all the properties of the absolute
community and the exclusive properties of each spouse.
(2) The debts and obligations of the absolute community shall be paid out of its assets. In
case of insufficiency of said assets, the spouses shall be solidarily liable for the unpaid balance with
their separate properties in accordance with the provisions of the second paragraph of Article 94.
(3) Whatever remains of the exclusive properties of the spouses shall thereafter be delivered
to each of them.
(4) The net remainder of the properties of the absolute community shall constitute its net
assets, which shall be divided equally between husband and wife, unless a different proportion or
division was agreed upon in the marriage settlements, or unless there has been a voluntary waiver of
such share provided in this Code. For purpose of computing the net profits subject to forfeiture in
accordance with Articles 43, No. (2) and 63, No. (2), the said profits shall be the increase in value
between the market value of the community property at the time of the celebration of the marriage
and the market value at the time of its dissolution.
(5) The presumptive legitimes of the common children shall be delivered upon partition, in
accordance with Article 51.
(6) Unless otherwise agreed upon by the parties, in the partition of the properties, the
conjugal dwelling and the lot on which it is situated shall be adjudicated to the spouse with whom the
majority of the common children choose to remain. Children below the age of seven years are
deemed to have chosen the mother, unless the court has decided otherwise. In case there in no such
majority, the court shall decide, taking into consideration the best interests of said children.
441
Art. 128. If a spouse without just cause abandons the other or fails to comply with his or her
obligation to the family, the aggrieved spouse may petition the court for receivership, for judicial
separation of property, or for authority to be the sole administrator of the conjugal partnership
property, subject to such precautionary conditions as the court may impose.
The obligations to the family mentioned in the preceding paragraph refer to marital, parental
or property relations.
A spouse is deemed to have abandoned the other when he or she has left the conjugal
dwelling without intention of returning. The spouse who has left the conjugal dwelling for a period
of three months or has failed within the same period to give any information as to his or her
whereabouts shall be prima facie presumed to have no intention of returning to the conjugal dwelling
Art. 129. Upon the dissolution of the conjugal partnership regime, the following procedure
shall apply:
(1) An inventory shall be prepared, listing separately all the properties of the conjugal
partnership and the exclusive properties of each spouse.
(2) Amounts advanced by the conjugal partnership in payment of personal debts and
obligations of either spouse shall be credited to the conjugal partnership as an asset thereof.
(3) Each spouse shall be reimbursed for the use of his or her exclusive funds in the
acquisition of property or for the value of his or her exclusive property, the ownership of which has
been vested by law in the conjugal partnership.
(4) The debts and obligations of the conjugal partnership shall be paid out of the conjugal
assets. In case of insufficiency of said assets, the spouses shall be solidarily liable for the unpaid
balance with their separate properties, in accordance with the provisions of paragraph (2) of Article
121.
(5) Whatever remains of the exclusive properties of the spouses shall thereafter be delivered
to each of them.
(6) Unless the owner had been indemnified from whatever source, the loss or deterioration
of movables used for the benefit of the family, belonging to either spouse, even due to fortuitous
event, shall be paid to said spouse from the conjugal funds, if any.
(7) The net remainder of the conjugal partnership properties shall constitute the profits,
which shall be divided equally between husband and wife, unless a different proportion or division
was agreed upon in the marriage settlements or unless there has been a voluntary waiver or forfeiture
of such share as provided in this Code.
(8) The presumptive legitimes of the common children shall be delivered upon the partition
in accordance with Article 51.
(9) In the partition of the properties, the conjugal dwelling and the lot on which it is situated
shall, unless otherwise agreed upon by the parties, be adjudicated to the spouse with whom the
majority of the common children choose to remain. Children below the age of seven years are
442
deemed to have chosen the mother, unless the court has decided otherwise. In case there is no such
majority, the court shall decide, taking into consideration the best interests of said children.
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.
Art. 135. Any of the following shall be considered sufficient cause for judicial separation of
property:
(1) That the spouse of the petitioner has been sentenced to a penalty which carries with it
civil interdiction;
(2) That the spouse of the petitioner has been judicially declared an absentee;
(3) That loss of parental authority of the spouse of petitioner has been decreed by the court;
(4) That the spouse of the petitioner has abandoned the latter or failed to comply with his or
her obligations to the family as provided for in Article 101;
(5) That the spouse granted the power of administration in the marriage settlements has
abused that power; and
(6) That at the time of the petition, the spouses have been separated in fact for at least one
year and reconciliation is highly improbable.
In the cases provided for in Numbers (1), (2) and (3), the presentation of the final judgment
against the guilty or absent spouse shall be enough basis for the grant of the decree of judicial
separation of property.
Art. 136. The spouses may jointly file a verified petition with the court for the voluntary
dissolution of the absolute community or the conjugal partnership of gains, and for the separation of
their common properties.
All creditors of the absolute community or of the conjugal partnership of gains, as well as
the personal creditors of the spouse, shall be listed in the petition and notified of the filing thereof.
The court shall take measures to protect the creditors and other persons with pecuniary interest.
Art. 137. Once the separation of property has been decreed, the absolute community or the
conjugal partnership of gains shall be liquidated in conformity with this Code.
During the pendency of the proceedings for separation of property, the absolute community
or the conjugal partnership shall pay for the support of the spouses and their children. (192a)
Art. 138. After dissolution of the absolute community or of the conjugal partnership, the
provisions on complete separation of property shall apply.
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Art. 155. The family home shall be exempt from execution, forced sale or attachment except:
Art. 205. The right to receive support under this Title as well as any money or property
obtained as such support shall not be levied upon on attachment or execution
Article 213. Separation of property may refer to present or future property or both. It may
be total or partial. In the latter case, the property not agreed upon as separate shall pertain to the
conjugal partnership of gains.
Rules of Court
RULE 39
Section 13. Property exempt from execution. Except as otherwise expressly provided by law,
the following property, and no other, shall be exempt from execution:
(a) The judgment obligor's family home as provided by law, or the homestead in which he
resides, and land necessarily used in connection therewith;
(b) Ordinary tools and implements personally used by him in his trade, employment, or
livelihood;
(c) Three horses, or three cows, or three carabaos, or other beasts of burden, such as the
judgment obligor may select necessarily used by him in his ordinary occupation;
(d) His necessary clothing and articles for ordinary personal use, excluding jewelry;
(e) Household furniture and utensils necessary for housekeeping, and used for that purpose
by the judgment obligor and his family, such as the judgment obligor may select, of a value not
exceeding one hundred thousand pesos;
(f) Provisions for individual or family use sufficient for four months;
(g) The professional libraries and equipment of judges, lawyers, physicians, pharmacists,
dentists, engineers, surveyors, clergymen, teachers, and other professionals, not exceeding three
hundred thousand pesos in value;
(h) One fishing boat and accessories not exceeding the total value of one hundred thousand
pesos owned by a fisherman and by the lawful use of which he earns his livelihood;
(i) So much of the salaries, wages, or earnings of the judgment obligor for his personal
services within the four months preceding the levy as are necessary for the support of his family;
444
(k) Monies, benefits, privileges, or annuities accruing or in any manner growing out of any
life insurance;
(l) The right to receive legal support, or money or property obtained as such support, or any
pension or gratuity from the Government;
But no article or species of property mentioned in this section shall be exempt from
execution issued upon a judgment recovered for its price or upon a judgment of foreclosure of a
mortgage thereon.
RULE 108
Sec. 1. Who may file petition. - Any person interested in any act, event, order or decree
concerning the civil status of persons which has been recorded in the civil register, may file a verified
petition for the cancellation or correction of any entry relating thereto, with the Court of First
Instance of the province where the corresponding civil registry is located.
Sec. 2. Entries subject to cancellation or correction. - Upon good and valid grounds, the
following entries in the civil register may be cancelled or corrected: (a) births; (b) marriages; (c)
deaths; (d) legal separations; (e) judgments of annulments of marriage; (f) judgments declaring
marriages void from the beginning; (g) legitimations; (h) adoptions; (i) acknowledgments of natural
children; (j) naturalization (k) election, loss or recovery of citizenship (l) civil interdiction; (m) judicial
determination of filiation; (n) voluntary emancipation of a minor; and (o) changes of name.
Sec. 3. Parties. - When cancellation or correction of an entry in the civil register is sought,
the civil registrar and all persons who have or claim any interest which would be affected thereby
shall be made parties to the proceeding.chanrobles virtua law library
Sec. 4. Notice and publication. - Upon the filing of the petition, the court shall, by an order,
fix the time and place for the hearing of the same, and cause reasonable notice thereof to be given to
the persons named in the petition. The court shall also cause the order to be published once a week
for three (3) consecutive weeks in a newspaper of general circulation in the province.
Sec. 5. Opposition. - The civil registrar and any person having or claiming any interest under
the entry whose cancellation or correction is sought may, within fifteen (15) days from notice of the
petition, or from the last date of publication of such notice, file his opposition thereto.
Sec. 6. Expediting proceedings. - The court in which the proceeding is brought may make
orders expediting the proceedings, and may also grant preliminary injunction for the preservation of
the rights of the parties pending such proceedings.
Sec. 7. Order. - After hearing, the court may either dismiss the petition or issue an order
granting the cancellation or correction prayed for. In either case, a certified copy of the judgment
shall be served upon the civil registrar concerned who shall annotate the same in his record.
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REPUBLIC ACT NO. 9048
[March 22, 2001]
Section 1. Authority to Correct Clerical or Typographical Error and Change of First Name or Nickname.
No entry in a civil register shall be changed or corrected without a judicial order; except for clerical
or typographical errors and change of first name or nickname which can be corrected or changed by
concerned city or municipal civil registrar or consul general in accordance with the provisions of this
Act and its implementing rules and regulations.
Sec. 2. Definitions of Terms. As used in this Act, the following terms shall mean:
(1) "City or municipal civil registrar" refers to the head of the local civil registry office of the city
or municipality, as the case may be, who is appointed as such by the city or municipal mayor in
accordance with the provisions of existing laws.
(2) "Petitioner" refers to a natural person filing the petition and who has direct and personal
interest in the correction of a clerical or typographical error in an entry or change of first name or
nickname in the civil register.
(3) "Clerical or typographical error" refers to a mistake committed in the performance of clerical
work in writing, copying, transcribing or typing an entry in the civil register that is harmless and
innocuous, such as misspelled name or misspelled place of birth or the like, which is visible to the
eyes or obvious to the understanding, and can be corrected or changed only by reference to other
existing record or records: Provided, however, That no correction must involve the change of
nationality, age, status or sex of the petitioner.
(4) "Civil register" refers to the various registry books and related certificates and documents
kept in the archives of the local civil registry offices, Philippine Consulates and of the Office of the
Civil Register General.
(5) "Civil registrar general" refers to the administrator of the National Statistics Office which is
the agency mandated to carry out and administer the provision of laws on civil registration.
(6) "First name" refers to a name or nickname given to a person which may consist of one or
more names in addition to the middle and last names.
Sec. 3. Who may File the Petition and Where. Any person having direct and personal interest
in the correction of a clerical or typographical error in an entry and/or change of first name or
nickname in the civil register may file, in person, a verified petition with the local civil registry office
of the city or municipality where the record being sought to be corrected or changed is kept.
In case the petitioner has already migrated to another place in the country and it would not
be practical for such party, in terms of transportation expenses, time and effort to appear in person
before the local civil registrar keeping the documents to be corrected or changed, the petition may be
filed, in person, with the local civil registrar of the place where the interested party is presently
residing or domiciled. The two (2) local civil registrars concerned will then communicate to facilitate
the processing of the petition.
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Citizens of the Philippines who are presently residing or domiciled in foreign countries may
file their petition, in person, with the nearest Philippine Consulates.
The petitions filed with the city or municipal civil registrar or the consul general shall be
processed in accordance with this Act and its implementing rules and regulations.
All petitions for the correction of clerical or typographical errors and/or change of first
names or nicknames may be availed of only once.
Sec. 4. Grounds for Change of First Name or Nickname. The petition for change of first name
or nickname may be allowed in any of the following cases:
(1) The petitioner finds the first name or nickname to be ridiculous, tainted with dishonor or
extremely difficult to write or pronounce;
(2) The new first name or nickname has been habitually and continuously used by the
petitioner and he has been publicly known by the first name or nickname in the community; or
Sec. 5. Form and Contents of the Petition. The petition shall be in the form of an affidavit,
subscribed and sworn to before any person authorized by law to administer oaths. The affidavit shall
set forth facts necessary to establish the merits of the petition and shall show affirmatively that the
petitioner is competent to testify to the matters stated. The petitioner shall state the particular
erroneous entry or entries which are sought to be corrected and/or the change sought to be made.
(1) A certified true machine copy of the certificate or of the page or of the registry book
containing the entry or entries sought to be corrected or changed;
(2) At least two (2) public or private documents showing the correct entry or entries upon
which the correction or change shall be based; and
(3) other documents which the petitioner or the city or municipal civil registrar, or the
consul general may consider relevant and necessary for the approval of the petition.
In case of change of first name or nickname, the petition shall likewise be supported with
the documents mentioned in the immediately preceding paragraph. In addition, the petition shall be
published at least once a week for two (2) consecutive weeks in a newspaper of general circulation.
Furthermore, the petitioner shall submit a certification from the appropriate law enforcement
agencies that he has no pending case or no criminal record.
The petition and its supporting papers shall be filed in three (3) copies to be distributed as
follows: first copy to the concerned city or municipal civil registrar, or the consul general; second copy
to the Office of the Civil Registrar General; and the third copy to the petitioner.
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Sec. 6. Duties of the City of Municipal Civil Registrar or the Consul General. The city or municipal
civil registrar or the consul general to whom the petition is presented shall examine the petition and
its supporting documents. He shall post the petition in a conspicuous place provided for the purpose
for ten (10) consecutive days after he finds the petition and its supporting documents sufficient in
form and substance.
The city or municipal civil registrar or the consul general shall act on the petition and shall
render a decision not later than five (5) working days after the completion of the posting and/or
publication requirement. He shall transmit a copy of his decision together with the records of the
proceedings to the Office of the Civil Registrar General within five (5) working days from the date of
the decision.
Sec. 7. Duties and Powers of the Civil Registrar General. The civil registrar general shall, within
ten (10) working days from receipt of the decision granting a petition, exercise the power to impugn
such decision by way of an objection based on the following grounds:
(2) The correction of an entry or entries in the civil register is substantial or controversial as
it effects the civil status of a person; or
(3) The basis used in changing the first name or nickname of a person does not fall under
Section 4.
The civil registrar general shall immediately notify the city or municipal civil registrar or the
consul general of the action taken on the decision. Upon receipt of the notice thereof, the city or
municipal civil registrar or the consul general shall notify the petitioner of such action.
The petitioner may seek reconsideration with the civil registrar general or file the appropriate
petition with the proper court.
If the civil registrar general fails to exercise his power to impugn the decision of the city or
municipal registrar or of the consul general within the period prescribed herein, such decision shall
become final and executory.
Where the petition is denied by the city or municipal civil registrar or the consul general, the
petitioner may either appeal the decision to the civil registrar general or file the appropriate petition
with the proper court.
Sec. 8. Payment of Fees. The city or municipal civil registrar or the consul general shall be
authorized to collect reasonable fees as a condition for accepting the petition. An indigent petitioner
shall be exempt from the payment of the said fee.
Sec. 9. Penalty Clause. A person who violates any of the provisions of this Act shall, upon
conviction, be penalized by imprisonment of not less than six (6) years but not more than twelve (12)
years, or a fine of not less than Ten thousand pesos (P10,000.00) but not more than One hundred
thousand pesos (P100,000.00), or both, at the discretion of the court.
In addition, if the offender is a government official or employee, he shall suffer the penalties
provided under civil service laws, rules and regulations.
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