Professional Documents
Culture Documents
UP Bar Reviewer 2013 Civil Law
UP Bar Reviewer 2013 Civil Law
UP Bar Reviewer 2013 Civil Law
Marriage ...............................13
REQUISITES ....................................................... 13
NATURE OF MARRIAGE ............................................ 13
KINDS OF REQUISITES ............................................. 13
EFFECT OF ABSENCE OF REQUISITES ........................... 13
ESSENTIAL REQUISITES ............................................ 13
EFFECT OF MARRIAGES CELEBRATED
ABROAD AND FOREIGN DIVORCE ..................... 16
MARRIAGES CELEBRATED ABROAD ............................. 16
PROOF OF FOREIGN MARRIAGE.................................. 16
FOREIGN DIVORCES ................................................ 16
VOID AND VOIDABLE MARRIAGES .................... 16
PRESUMPTION OF MARRIAGE .................................... 16
VOID MARRIAGES ................................................... 17
ACTION OR DEFENSE OF NULLITY .............................. 20
ANNULLABLE MARRIAGE .......................................... 21
EFFECT OF PENDING ACTIONS/DECREE ...................... 24
EFFECTS OF NULLITY .............................................. 24
RECONCILIATION ............................................. 27
HOW DONE ........................................................... 27
EFFECTS OF RECONCILIATION ................................... 27
ANNEX TO VOID AND VOIDABLE
MARRIAGES AND LEGAL SEPARATION ............ 27
GROUNDS ............................................................ 27
EFFECTS OF FILING / PENDING DECREE ....................... 27
EFFECTS OF AFFIDAVIT OF REAPPEARANCE, JUDICIAL
DECLARATION OF NULLITY, ANNULMENT AND LEGAL
SEPARATION ........................................................ 28
PROOF OF FILIATION........................................ 43
ACTION FOR CLAIMING FILIATION .............................. 44
RIGHTS OF LEGITIMATE CHILDREN ............................ 44
The Family........................... 40
LEGITIMATED CHILDREN.................................. 45
TO BE CAPABLE OF LEGITIMATION ............................. 45
PROCEDURE ........................................................ 45
GROUNDS FOR IMPUGNING LEGITIMATION ................. 45
RIGHTS ............................................................... 45
IMPUGNING LEGITIMATION ...................................... 45
Adoption.............................. 46
RA 8552 DOMESTIC ADOPTION LAW ............. 46
WHO CAN ADOPT ................................................... 46
WHO CAN BE ADOPTED ........................................... 46
PRE-ADOPTION PROCEDURES .................................. 47
ADOPTION PROCEDURES......................................... 47
WHO MAY NOT ADOPT/ BE ADOPTED ......................... 48
RIGHTS OF AN ADOPTED CHILD ................................. 48
RESCISSION OF ADOPTION ....................................... 48
RECTIFICATION OF SIMULATED BIRTH......................... 49
Support ............................... 50
WHAT IT COMPRISES ....................................... 50
AMOUNT .......................................................... 52
WHEN DEMANDABLE ....................................... 52
OPTIONS .......................................................... 52
ATTACHMENT .................................................. 52
Emancipation, as amended
by RA 6809 ......................... 55
Summary Judicial
Proceedings in the Family
Law ...................................... 56
PROCEDURAL RULES PROVIDED FOR
IN THIS TITLE SHALL APPLY TO ........................ 56
SEPARATION IN FACT ...................................... 56
SEPARATE CLAIM FOR DAMAGES............................... 56
JURISDICTION ....................................................... 56
NOTIFICATION TO OTHER SPOUSE ............................. 56
PROCEDURE ......................................................... 56
WHEN APPEARANCE OF SPOUSES REQUIRED ............... 56
NATURE OF JUDGMENT ........................................... 56
RULES APPLICABLE FOR ADMINISTERING
OR ENCUMBERING SEPARATE PROPERTY OF SPOUSE .... 56
INCIDENTS INVOLVING
PARENTAL AUTHORITY .................................... 57
PROCEDURE ......................................................... 57
PROPERTY
Characteristics .................... 66
Classification ....................... 66
Funeral ................................. 57
Absence ............................... 59
PROVISIONAL MEASURES
IN CASE OF ABSENCE ....................................... 59
PRESUMPTION IN THE RULES OF COURT ...................... 59
REQUISITES ......................................................... 60
WHO MAY BE APPOINTED AS REPRESENTATIVE ............. 60
DECLARATION OF ABSENCE ............................. 60
WHEN MAY A DECLARATION OF ABSENCE BE DECLARED . 60
WHO MAY ASK FOR A DECLARATION OF ABSENCE ......... 60
ADMINISTRATION OF THE
PROPERTY OF THE ABSENTEE.......................... 60
WHO MAY ADMINISTER THE PROPERTY ...................... 60
WHEN WILL THE ADMINISTRATION OF PROPERTY CEASE ..61
PRESUMPTION OF DEATH .................................61
EXTRAORDINARY ABSENCE .......................................61
Civil Registrar....................... 61
RA 9048 AS AMENDED BY RA 10172 ................. 62
GROUNDS ............................................................ 63
Ownership ............................. 71
DEFINITION ....................................................... 71
Accession ............................. 74
CLASSIFICATION OF ACCESSION ...................... 74
WITH RESPECT TO IMMOVABLES ................................ 74
WITH RESPECT TO MOVABLE PROPERTY ...................... 79
LAW ................................................................... 83
CONTRACTS ......................................................... 83
SUCCESSION......................................................... 84
TESTAMENTARY DISPOSITION
OR DONATION INTER VIVOS ..................................... 84
BY FORTUITOUS EVENT OR BY CHANCE ....................... 84
BY OCCUPANCY ..................................................... 84
BY ASSOCIATIONS AND
SOCIETIES WITH SECRET ARTICLES ............................ 84
RIGHT OF CO-OWNERS..................................... 84
RIGHT TO THE SHARE IN THE BENEFITS
AS WELL AS CHARGES ............................................ 84
RIGHT TO USE THE THING OWNED IN COMMON ............. 84
RIGHT TO BRING AN ACTION IN EJECTMENT ................. 84
RIGHT TO COMPEL OTHER CO-OWNERS
TO CONTRIBUTE TO THE EXPENSES
OF PRESERVATION AND TO THE TAXES ....................... 84
RIGHT TO REPAIR .................................................. 84
RIGHT TO OPPOSE ALTERATIONS............................... 84
RIGHT TO FULL OWNERSHIP OF HIS PART
AND OF THE FRUITS AND BENEFITS
PERTAINING THERETO ............................................ 85
RIGHT TO PARTITION ............................................. 85
RIGHT TO REDEMPTION........................................... 85
RULES................................................................. 85
TERMINATION/EXTINGUISHMENT ................... 85
TOTAL DESTRUCTION OF THING OR
LOSS OF THE PROPERTY CO-OWNED .......................... 85
MERGER OF ALL INTERESTS IN ONE PERSON ................ 85
ACQUISITIVE PRESCRIPTION..................................... 85
PARTITION OR DIVISION .......................................... 86
Possession........................... 86
DEFINITION ...................................................... 86
CONCEPT OF POSSESSION ............................... 86
PRESCRIPTION/NON-PRESCRIPTION
OF ACTION ........................................................ 82
PRESCRIPTION OF ACTION ....................................... 82
Co-ownership ..................... 82
DEFINITION ...................................................... 82
REQUISITES ...................................................... 82
WHAT GOVERNS CO-OWNERSHIP .................... 82
CHARACTERISTICS OF CO-OWNERSHIP ........... 82
THERE ARE IDEAL SHARES DEFINED
BUT NOT PHYSICALLY IDENTIFIED .............................. 83
CHARACTERISTICS ........................................... 86
ESSENTIAL REQUISITES OF POSSESSION ..................... 86
DEGREES OF POSSESSION........................................ 86
CASES OF POSSESSION ........................................... 87
ACQUISITION OF POSSESSION ......................... 88
WAYS OF ACQUIRING POSSESSION............................. 88
BY WHOM MAY POSSESSION BE ACQUIRED .................. 89
WHAT DO NOT AFFECT POSSESSION .......................... 89
RULES TO SOLVE CONFLICTS OF POSSESSION ............... 89
EFFECTS OF POSSESSION ................................ 90
RIGHT TO BE PROTECTED IN HIS POSSESSION ............... 90
ENTITLEMENT TO FRUITS
POSSESSOR IN GOOD FAITH/BAD FAITH...................... 90
REIMBURSEMENT FOR EXPENSES
EFFECTS OF POSSESSION................................. 93
EFFECTS OF POSSESSION IN THE CONCEPT OF OWNER .... 93
RIGHTS OF POSSESSOR.................................... 94
PRESUMPTION IN FAVOR OF THE POSSESSOR
FOR ACQUISITIVE PRESCRIPTION ............................... 94
LOSS/TERMINATION OF
POSSESSION..................................................... 94
ABANDONMENT .................................................... 94
ASSIGNMENT, EITHER ONEROUS OR GRATUITOUS ......... 94
POSSESSION BY ANOTHER;
IF POSSESSION HAS LASTED LONGER
THAN ONE YEAR;
REAL RIGHT OF POSSESSION
NOT LOST AFTER 10 YEARS ..................................... 94
RULES FOR LOSS OF MOVABLES ................................ 95
Usufruct............................... 95
CONCEPT .......................................................... 95
OBJECTS OF USUFRUCT.................................... 95
CHARACTERISTICS ........................................... 95
NATURAL CHARACTERISTICS .................................... 95
CLASSIFICATION ............................................... 95
BY ORIGIN ............................................................ 95
BY PERSON ENJOYING RIGHT OF USUFRUCT ................. 96
BY OBJECT OF USUFRUCT ......................................... 96
BY THE EXTENT OF THE USUFRUCT ............................. 96
BY THE TERMS OF THE USUFRUCT .............................. 96
Nuisance.............................. 114
Modes of Acquiring
Ownership .......................... 116
MODES OF ACQUIRING OWNERSHIP............... 116
OCCUPATION.................................................... 117
REQUISITES.......................................................... 117
KINDS ................................................................. 117
SPECIAL RULES ..................................................... 117
DONATION ...................................................... 118
OTHER INSTANCES CONSIDERED AS DONATION ........... 118
NATURE ............................................................. 118
WHAT MAY BE DONATED ........................................ 118
WHAT MAY NOT BE DONATED .................................. 118
KINDS OF DONATIONS ........................................... 118
FORMALITIES REQUIRED ........................................ 120
QUALIFICATIONS OF DONOR, DONEE......................... 120
EFFECTS OF DONATION/LIMITATIONS ........................121
VOID DONATIONS ................................................. 122
REVOCATION AND REDUCTION ................................ 122
TRADITION ...................................................... 127
CONCEPT ............................................................ 127
REQUISITES......................................................... 127
PURPOSE............................................................ 127
KINDS ................................................................ 127
Prescription .........................127
PRESCRIPTION DISTINGUISHED
FROM LACHES .................................................128
PRESCRIPTION OR LIMITATION OF ACTIONS ..129
TO RECOVER MOVABLES .........................................129
TO RECOVER IMMOVABLES......................................129
OTHER ACTIONS ...................................................129
OBLIGATIONS & CONTRACTS
Different Kinds
of Prestations .................... 132
Classification
of Obligations ................... 132
FROM THE VIEWPOINT OF SANCTION .......... 132
FROM THE VIEWPOINT OF SUBJECT MATTER.. 132
FROM THE AFFIRMATIVENESS OR
NEGATIVENESS OF THE OBLIGATION .............. 132
FROM THE VIEWPOINT OF
PERSONS OBLIGED.......................................... 132
OF SUSPENSIVE CONDITION;
OR IN CASE OF ARESOLUTORY CONDITION
IN AN OBLIGATION TO DO OR NOT TO DO ..................
145
CONFUSION..................................................... 156
Joint and
Solidary Obligation ........... 148
JOINT (DIVISIBLE) OBLIGATION ...................... 148
PRESUMPTION OF JOINT OBLIGATION ....................... 148
PRESUMPTION OF EQUAL DIVISION .......................... 148
EFFECT OF INSOLVENCY OF A JOINT DEBTOR .............. 148
JOINT (INDIVISIBLE) OBLIGATION................... 149
OBLIGATION CANNOT BE PERFORMED IN PARTS BUT
DEBTORS ARE BOUND JOINTLY ............................... 149
IN CASE OF FAILURE OF ONE OF THE JOINT DEBTORS TO
PERFORM HIS PART (SHARE), THERE IS DEFAULT BUT ONLY
THE GUILTY DEBTOR SHALL
BE LIABLE FOR DAMAGES....................................... 149
Extinguishment of
Obligations......................... 153
PAYMENT ........................................................ 153
DATION IN PAYMENT ............................................. 153
FORM OF PAYMENT .............................................. 153
EXTRAORDINARY INFLATION OR DEFLATION .............. 153
APPLICATION OF PAYMENT ..................................... 153
TENDER OF PAYMENT AND CONSIGNATION ................. 153
164
Parties to a
Contract of Sale ..................172
SALES
171
Price ....................................176
MEANING OF PRICE ....................................... 176
REQUISITES FOR A VALID PRICE .................... 176
HOW PRICE IS DETERMINED .......................... 176
INADEQUACY OF PRICE ................................. 176
WHEN NO PRICE AGREED .............................. 177
MANNER OF PAYMENT
MUST BE AGREED UPON ................................ 177
EARNEST MONEY VS. OPTION MONEY .......... 177
Formation of
Contract of Sale ................. 177
PREPARATORY .............................................. 177
OFFER ............................................................... 177
OPTION CONTRACT .............................................. 177
RIGHT OF FIRST REFUSAL ....................................... 178
MUTUAL PROMISE TO BUY AND SELL ........................ 178
PERFECTION .................................................. 178
WHEN PERFECTED ................................................ 178
EFFECT OF PERFECTION ......................................... 178
FORM AND OFFER ................................................ 178
FORMALITIES OF THE CONTRACT .................. 178
Remedies of an
Unpaid Seller ..................... 184
DEFINITION OF UNPAID SELLER .................... 184
REMEDIES OF UNPAID SELLER ....................... 184
JUDICIAL REMEDIES OF AN UNPAID SELLER ................ 184
ALTERNATIVE REMEDIES OF THE UNPAID SELLER UNDER
RECTO LAW ........................................................ 185
Testamentary
Succession ........................ 206
WILLS ............................................................. 206
IN GENERAL ....................................................... 206
TESTAMENTARY CAPACITY AND INTENT .................... 207
FORM................................................................ 208
WITNESSES ........................................................ 210
CODICILS ............................................................ 211
INCORPORATION BY REFERENCE .............................. 211
REVOCATION ....................................................... 211
Legal or
Intestate Succession ........ 224
Provisions Common to
Testate and Intestate
Succession ........................ 228
CAPACITY TO SUCCEED
BY WILL OR INTESTACY ................................. 229
PERSONS INCAPABLE OF SUCCEEDING ..................... 229
ACCEPTANCE AND REPUDIATION OF THE
INHERITANCE ................................................ 230
CHARACTERISTICS .............................................. 230
REQUISITES ....................................................... 230
ACCEPTANCE VS. REPUDIATION .............................. 230
............................................. 243
....................................................................... 246
MANAGEMENT WHEN MANNER NOT AGREED UPON .... 246
INSTANCES OF MUTUAL AGENCY ............................ 246
Obligations of
partnership/partners to third
persons ..............................247
LIABILITY OF PARTNERS FOR PARTNERSHIP
CONTRACTS .................................................. 247
NATURE OF INDIVIDUAL LIABILITY ........................... 247
LIABILITY OF INDUSTRIAL PARTNER ........................ 247
STIPULATION AGAINST INDIVIDUAL LIABILITY ............ 247
LIABILITY OF PARTNERS FOR PARTNERSHIP
CONTRACTS .................................................. 247
ACTS APPARENTLY FOR THE CARRYING ON OF USUAL
BUSINESS ......................................................... 247
ACTS NOT APPARENTLY FOR CARRYING ON OF THE USUAL
BUSINESS ......................................................... 247
ACTS OF STRICT DOMINION ................................... 247
ACTS IN CONTRAVENTION OF RESTRICTION ............... 248
Operation of
the Partnership ................ 246
FIRM NAME .................................................... 246
RIGHT TO CHOOSE FIRM NAME ............................... 246
MANAGEMENT OF THE PARTNERSHIP .......... 246
POWERS OF A MANAGING PARTNER ........................ 246
Dissolution
and winding up ................. 250
CONCEPTS ...................................................... 250
EFFECT OF DISSOLUTION ON EXISTENCE OF
PARTNERSHIP ................................................ 250
CAUSES OF DISSOLUTION .............................. 250
WITHOUT VIOLATION OF THE AGREEMENT ................. 250
IN CONTRAVENTION OF THE AGREEMENT .................. 250
BY OPERATION OF LAW ......................................... 250
BY DECREE OF COURT ............................................ 251
OTHER CAUSES .................................................... 251
RIGHTS OF PARTNERS
IN CASE OF RESCISSION ................................. 253
SETTLING OF ACCOUNTS
BETWEEN PARTNERS..................................... 253
COMPOSITION OF PARTNERSHIP ASSETS .................. 253
AMOUNT OF CONTRIBUTION FOR LIABILITIES ............. 253
ENFORCEMENT OF CONTRIBUTION .......................... 253
ORDER OF APPLICATION OF ASSETS ......................... 254
DOCTRINE OF MARSHALING OF ASSETS .................... 254
DISTRIBUTION OF PROPERTY OF INSOLVENT PARTNER. 254
RIGHTS OF CREDITORS OF DISSOLVED
PARTNERSHIP ................................................ 254
CREDITORS OF DISSOLVED PARTNERSHIPAS CREDITORS OF
NEW PARTNERSHIP.............................................. 254
LIABILITY OF A NEW PARTNER ................................ 254
PRIORITY OF CREDITORS OF DISSOLVED PARTNERSHIP 254
EFFECT OF CONTINUING USE OF PARTNERSHIP NAME .. 254
CASES WHERE
PARTNERSHIP IS NOT BOUND........................ 252
PARTNERSHIP BY ESTOPPEL AFTER DISSOLUTION ....... 252
RIGHTS OF PARTNERS IN
CASE OF DISSOLUTION ................................... 252
DISSOLUTION WITHOUT
VIOLATION OF THE AGREEMENT .............................. 252
DISSOLUTION IN CONTRAVENTION
OF THE AGREEMENT ............................................. 253
257
257
KINDS OF AGENTS...........................................267
AS TO NATURE AND EXTENT OF AUTHORITY ................267
SPECIAL TYPES OF AGENTS .................................... 268
OBLIGATION IN CASE HE
DECLINES AGENCY ......................................... 269
OBLIGATION TO
ADVANCE NECESSARY FUNDS ....................... 270
OBLIGATION TO ACT IN ACCORDANCE WITH
INSTRUCTIONS ............................................... 270
OBLIGATION TO PREFER INTEREST OF
PRINCIPAL ...................................................... 270
BASIS OF THE RULE .............................................. 270
APPLICATION ...................................................... 270
OBLIGATION TO ACCOUNT AND TO DELIVER
THINGS RECEIVED ......................................... 270
WHAT TO DELIVER................................................. 271
LIABILITY FOR CONVERSION .................................... 271
EXEMPTING STIPULATION ....................................... 271
WHEN OBLIGATION NOT APPLICABLE......................... 271
RESPONSIBILITY FOR ACTS OF SUBSTITUTE ... 271
SUB-AGENCY ....................................................... 271
POWER TO APPOINT .............................................. 271
RELATIONS AMONG THE PARTIES ............................. 271
EFFECTS OF SUBSTITUTION ..................................... 271
RESPONSIBILITY OF TWO OR MORE AGENTS .. 271
OBLIGATION FOR SUMS APPLIED TO HIS OWN
USE ................................................................. 272
OBLIGATIONS TO THIRD PERSONS ................ 272
LIABILITY OF AGENT FOR OBLIGATIONS CONTRACTED .. 272
VOID CONTRACTS ................................................ 272
PRESENTATION OF POWER OF ATTORNEY.................. 272
RATIFICATION BY PRINCIPAL .................................. 272
IGNORANCE OF AGENT .......................................... 272
OBLIGATIONS OF COMMISSION AGENT.......... 273
FACTOR OR COMMISSION AGENT ............................. 273
RESPONSIBILITY FOR GOODS RECEIVED .................... 273
SALE OF GOODS ON CREDIT WITHOUT AUTHORITY ....... 273
SALE OF GOODS ON CREDIT WITH AUTHORITY ............ 273
RESPONSIBILITY FOR FRAUD
AND NEGLIGENCE........................................... 273
Obligations of
the principal .......................274
OBLIGATIONS, IN GENERAL ........................... 274
OBLIGATION TO COMPLY WITH OBLIGATIONS
CONTRACTED ................................................. 274
RATIFICATION .....................................................
SEPARATE CONTRACTS WITH PRINCIPAL AND AGENT...
WHEN PRINCIPAL NOT LIABLE, IN SUMMARY..............
274
274
274
OBLIGATION FOR
COMPENSATION OF AGENT ........................... 274
AMOUNT OF COMPENSATION ................................. 275
COMPENSATION OF BROKER .................................. 275
LIABILITY FOR EXPENSES AND DAMAGES ..... 275
NECESSARY FUNDS .............................................. 275
WHEN PRINCIPAL NOT LIABLE FOR EXPENSES ............ 275
DAMAGES .......................................................... 275
RIGHT OF RETENTION BY AGENT ............................. 275
MULTIPLE PRINCIPALS .......................................... 275
LIABILITY FOR QUASI-DELICT BY AGENT .................... 275
Extinguishment
of agency ............................276
MODES OF EXTINGUISHING AGENCY, IN
GENERAL.........................................................276
REVOCATION BY PRINCIPAL ...........................276
MULTIPLE PRINCIPALS ...........................................276
MANNER OF REVOCATION ......................................276
EFFECT OF REVOCATION
IN RELATION TO THIRD PARTIES...............................276
CREDIT TRANSACTIONS
Loan ...................................279
APPLICABLE LAW
................................................ 283
GUARANTY DISTINGUISHED
FROM SURETYSHIP ....................................... 284
NATURE AND EXTENT OF GUARANTY ........... 284
NATURE AND EXTENT OF GUARANTY ....................... 284
NATURE AND EXTENT OF SURETYSHIP ......... 286
EFFECT OF GUARANTY ................................... 287
EFFECTS OF GUARANTY BETWEEN THE GUARANTOR AND
THE CREDITOR ................................................... 287
EFFECTS OF GUARANTY BETWEEN THE DEBTOR AND THE
GUARANTOR ...................................................... 288
EFFECTS OF GUARANTY AS BETWEEN CO-GUARANTORS
....................................................................... 289
EXTINGUISHMENT OF GUARANTY ................. 289
LEGAL AND JUDICIAL BONDS ........................ 289
QUALIFICATIONS OF PERSONAL BONDSMAN ............. 289
PLEDGE OR MORTGAGE IN LIEU OF BOND ................. 290
BONDSMAN NOT ENTITLED TO EXCUSSION ............... 290
....................................................................... 296
EFFECT OF REGISTRATION ..................................... 296
REGISTRATION OF ASSIGNMENT OF MORTGAGE NOT
REQUIRED ......................................................... 296
VENUE OF REGISTRATION ...................................... 296
Quasi-Contracts ...............297
NEGOTIORUM GESTIO (UNAUTHORIZED
REGISTRATION OF VOLUNTARY
INSTRUMENTS IN GENERAL .................................... 317
REGISTRATION OF DEEDS OF SALE AND TRANSFERS ..... 318
MORTGAGES AND LEASES ...................................... 318
POWERS OF ATTORNEY; TRUSTS .............................. 318
Non-registrable Properties
............................................ 321
REGISTRATION PROCESS
AND REQUIREMENTS ..................................... 309
WHAT LANDS ARE REGISTRABLE ............................. 309
SURVEY ..............................................................310
APPLICATION .......................................................310
INITIAL HEARING ..................................................310
PUBLICATION .......................................................310
OPPOSITION ........................................................ 311
HEARING ............................................................ 311
JUDGMENT .......................................................... 311
ISSUANCE OF DECREE ............................................ 311
REMEDIES........................................................ 311
GROUND FOR REOPENING AND REVIEWING THE DECREE OF
REGISTRATION ..................................................... 311
PERIODS ............................................................. 311
PROHIBITIONS ..................................................... 311
GUARDIANS.................................................... 328
LIABILITY OF GUARDIANS....................................... 328
SCHOOL, TEACHERS AND ADMINISTRATORS 328
OWNERS AND MANAGERS OF ESTABLISHMENTS
AND ENTERPRISES ......................................... 329
EMPLOYERS (IN GENERAL)............................. 329
MEANING OF EMPLOYER ........................................ 329
INDEPENDENT CONTRACTOR.................................. 330
REQUISITES ........................................................ 330
EMPLOYER NEED NOT BE ENGAGED IN BUSINESS OR
INDUSTRY .......................................................... 330
DEFENSE OF DILIGENCE IN SELECTION AND SUPERVISION
334
334
334
........................................................................ 331
....................................................................... 350
....................................................................... 356
PROVINCES, CITIES, AND MUNICIPALITIES ................. 357
OWNERS OF MOTOR VEHICLES ................................ 357
PROPRIETOR OF BUILDING OR STRUCTURE ................ 358
HEAD OF FAMILY.................................................. 359
REQUISITES FOR
AWARDING MORAL DAMAGES........................367
Exemplary Or Corrective
Damages ............................. 371
WHEN RECOVERABLE..................................... 372
IN CRIMINAL OFFENSES ........................................ 372
IN QUASI-DELICTS................................................ 372
IN CONTRACTS AND QUASI-CONTRACTS.................... 372
REQUISITES ........................................................ 372
DAMAGES IN CASE OF DEATH RE. CRIMES AND QUASIDELICTS............................................................. 373
....................................................................... 374
RULE WHEN CONTRACTING PARTIES ARE IN PARI DELICTO
....................................................................... 375
LIQUIDATED DAMAGES .................................. 375
COMPROMISE ................................................. 375
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INTRODUCTION
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INTRODUCTION
REPEAL OF LAWS
Art. 7. Laws are repealed only by subsequent ones,
and their violation or non-observance shall not be
excused by disuse, or 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. (5a)
RETROACTIVITY OF LAWS
Art. 4. Laws shall have no retroactive effect, unless
the contrary is provided. (3)
JUDICIAL DECISIONS
Exceptions
(1) When the law itself expressly provides
Exceptions to Exception:
(a) Ex post facto law
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CONFLICT OF LAWS
CONFLICT OF LAWS/ PRIVATE INTERNATIONAL LAW
(a) It is a branch or part of Philippine Law which
regulates the application of foreign law within
Philippine jurisdiction in the resolution of cases
involving foreign elements.
(b) It is that part of municipal law which governs
cases involving a foreign element.
(c) Private International Law is more commonly
known in other jurisdictions as conflict of laws
SOURCES
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INTRODUCTION
RULE ON SUCCESSION
Filipino Testator
RULE ON PROPERTY
Alien Testator
Philippines
Philippine Law
Foreign
Country
Philippines
Foreign
Country
(Arts. 816,
17)
Intrinsic Validity
Intestate and testamentary successions shall be
regulated by the national law of the decedent, with
respect to the following (Art. 16(2); Art. 1039)
(1) Order of succession
(2) Amount of successional rights
(3) Intrinsic validity of the testamentary provisions
(4) Capacity to succeed
Interpretation of Wills
Governed by the National Law of the decedent.
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Revocation
Will is revoked in a
Foreign Country
Will is revoked in
the Philippines
Testator
Applicable Law
Philippine
Domiciliary
Philippine Law
Non-domiciliary
[Art. 829]
Philippine
Domiciliary
Non-domiciliary
[Art. 829]
Probate of wills
Controlling Law:
The probate of a will being essentially procedural in
character, the law of the forum (lex fori) governs.
Note:
(1) Contracts Before Diplomatic/ Consular Officials:
The solemnities established by Philippine laws
shall be observed with respect to contracts
executed before diplomatic or consular officials of
the Republic of the Philippines in a foreign
country [Art. 17(2), FC]
(2) Contracts entered Into by Letter/ Cablegram, etc.:
A contract accepted by letter or cablegram is
presumed to have been entered into the place
where the offer was made. [Art. 1319(2)]
Administration of Estates
Territorial: governed by the law of the place where
the administration takes place, and that is the law of
the country from which the administrator derives his
authority.
Trusts
Extrinsic validity: Rule governing wills apply intrinsic
validity: lex situs since a trust involves property cf Art.
17
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Definition:
Art. 1, FC. Marriage is 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 within the limits provided by this
Code.
Extrinsic Validity of Marriage
(1) Formal Requisites of Marriage under Philippine Law
[Art. 3, FC]
(a) Authority of the solemnizing officer
(b) Valid marriage license except in the cases
provided for in Chapter 2 of Title I
(c) A marriage ceremony which takes place with
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.
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Effects of Marriage
(1) Personal relations between the spouses
(a) Governed by the national law of the parties
Note:
(a) Laws relating to Family rights and duties,
Status, Condition or Legal capacity of persons
are binding on citizens of the Philippines, even
though living abroad [Art. 15]
(b) 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 [Art.
21, FC]
(c) Marriages enumerated under Art. 26(2), FC
are void even if valid in the country where
celebrated.
Note:
(1) Rule on Proxy Marriages:
(a) Proxy marriages, where permitted by the law
of the place where the proxy participates in
the marriage ceremony, are entitled to
recognition in countries adhering to the lex
loci celebrationis rule, at least insofar as
formal validity is concerned
(b) Internal Philippine law, however, does not
sanction proxy marriages.
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INTRODUCTION
Jurisdiction to Annul
(1) Vested in the court of the domicile of the parties
(2) Jurisdiction over the non-resident defendant is
not essential
Governing Law
(1) Lex loci celebrationis determines the
consequences of any defect as to form
(2) In general, the same applies with reference to
substantive or intrinsic validity. But with regard to
capacity of the parties to marry, national law is
determinative.
Human Relations
ABUSE OF RIGHT
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INTRODUCTION
Art. 2154
(Solutio Indebiti)
Payment should be
made by mistake
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CAPACITY TO ACT
CIVIL PERSONALITY
Minority
RA 6809 (1989): An act lowering the age of majority
from twenty-one to eighteen years.
Capacity to Act
Can
exist
without
capacity to act
Cannot be limited or
restricted
Effects on Contracts
(1) They cannot give consent to a contract [Art. 1327
(1)]
(2) A contract where one of the parties is a minor is
voidable [Art. 1390(1)]
(3) A contract is unenforceable when both of the
parties are minors (incapable of giving consent)
[Art. 1403(3)]
(4) Minority cannot be asserted by the other party in
an action for annulment [Art. 1397]
(5) Not obliged to make restitution except insofar as
he has been benefited [Art. 1399]
(6) Minor has no right to demand the thing/price
voluntarily returned by him [Art. 1426]
(7) Minor has no right to recover voluntarily paid sum
or delivered thing, if consumed in good faith [Art.
1427]
(8) Must pay reasonable amount for necessaries
delivered to him [Art. 1489]
Effects on Marriage
(1) May not yet contract marriage [Art. 5, FC].
(2) Marriages, where one of the parties is below 18,
even with the consent of parents/guardians, are
VOID [Art. 35, FC]
Insanity
Insanity includes many forms of mental disease,
either inherited or acquired. A person may not be
insane but only mentally deficient (idiocy, imbecility,
feeble-mindedness).
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Effect on Contracts
(1) Incapacity to give consent to a contract [Art.
1327(2)]
(2) Contracts entered into during lucid intervals are
valid [Art. 1328]
(3) Restitution of benefits [Art. 1399]
(4) Voidable if one of the parties is insane [Art. 1390]
(5) Unenforceable if both of the parties are insane
(Art. 1403 (3))
Civil interdiction
(1) It is an accessory penalty imposed upon persons
who are sentenced to a principal penalty not
lower than reclusion temporal (Art. 41, RPC).
(2) Offender is deprived of rights of parental
authority, or guardianship, of marital authority, of
the right to manage his property and of the right
to dispose of such (Art. 34, RPC)
(3) For the validity of marriage settlements, the
participation of the guardian shall be
indispensable (Art. 123)
Effect on Crimes
(1) General rule: EXEMPTED from criminal liability
(2) Exception: Acted during lucid interval
Family relations
(1) Justifying circumstance if acted in defense of
person/rights
of
spouse,
ascendants,
descendants, brothers/sisters, and other relatives
th
up to the 4 civil degree [Art. 11(2), RPC]
(2) Mitigating circumstance if acted in the immediate
vindication of a grave offense/felony committed
against his spouse, ascendants or relatives of the
same civil degree [Art. 13(5), RPC]
(3) Incestuous and void marriages:
(a) Between ascendants and descendants of any
degree;
(b) Between brothers and sisters, whether full or
half-blood. [Art. 37, FC]
(4) Donations/grants
of gratuitous advantage
between spouses during the marriage shall be
VOID, except moderate gifts during family
occasions [Art. 87, FC]
(5) Descendants cannot be compelled to testify in a
criminal case, against his parents and
grandparents
(a) UNLESS: crime was against the descendant
OR by one parent against the other [Art. 215,
FC]
(6) Spouses cannot sell property to each other, except:
(a) Absolute separation is agreed upon in the
marriage settlements
(b) Judicial separation of property [Art. 1490]
Effect on Marriage
(1) May be annulled if either party was of unsound
mind unless the such party after coming to
reason, freely cohabited with the other [Art. 45(2),
FC]
(2) Action for annulment of marriage must be filed by
the sane spouse who had no knowledge of the
others insanity, or by any relative/guardian of the
insane before the death of either party; or by the
insane spouse during a lucid interval or after
regaining sanity [Art. 47(2), FC]
State of Being Deaf-Mute
(1) Cannot give consent to a contract if he/she also
does not know how to write (Art. 1327(2), CC)
(2) Can make a valid WILL, provided: he must
personally read the will. The contents of the same
have either been read personally by him or
otherwise communicated to him by 2 persons
(Art. 807, CC)
(3) Cannot be a witness to the execution of a will (Art.
820, CC)
(4) Voidable if one of the parties is deaf-mute and
does not know how to write
(5) Unenforceable if both of the parties are deafmutes and does not know how to write
Prodigality
Martinez v. Martinez, (1902):
A spendthrift or a prodigal is a person, who, by
excessive drinking, gambling, idleness or debauchery
of any kind shall so spend, waste or lessen his estate as
to expose himself or his family to want or suffering.
The acts of prodigality must show a morbid state of
mind.
Absence
Art. 390. After an absence of seven 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. (n)
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Art. 43
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Family Code
Marriage
Presumed Survivor
Both under 15
Both above 60
One under 15, the other
above 60
Both over 15 and under
60; different sexes
Older
Younger
One under 15
Older
REQUISITES
NATURE OF MARRIAGE, ART. 1
Male
KINDS OF REQUISITES
Absence
Defect or Irregularity
Effect
Void
Voidable
ESSENTIAL REQUISITES
Age
Legal Capacity [Art. 5]
Male or female 18 years old and above, not under any
impediments mentioned in Art. 37 (incestuous
marriage) & Art. 38 (marriage against public policy),
may contract marriage.
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Exceptions:
(1) Marriages performed in articulo mortis or in
remote places. [Art. 29]
(2) Where both parties request in writing that
marriage be solemnized at a place designated by
them.
Exceptions Art. 35
(1) Marriage is void when solemnized by any person
not legally authorized to perform marriages
unless either or both parties believed in good faith
that the solemnizing officer had legal authority to
do so. [Art. 35 (2)]
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Marriage certificate
Absence and irregularity of marriage license and
contract
Republic v. CA and Castro (1994): Issuance of the Civil
Registrar of a Certificate of Due Search and Inability to
Find the application of a marriage license certifies the
licenses inexistence, thus rendering the marriage
VOID.
Foreign National
When either or both parties are foreign nationals:
Certificate of legal capacity to contract marriage,
issued by a diplomatic or consular official, shall be
submitted before a marriage license can be obtained
[Art. 21]
Exceptions
(1) Marriage in articulo mortis [Art. 27]
(a) The marriage may be solemnized without the
necessity of a marriage license.
(b) It remains valid even if ailing party survives.
(2) Between passengers or crew members in a ship
or airplane [Art. 31]
(3) Persons within a military zone [Art. 32]
(4) Marriage in Remote and inaccessible places [Art.
28]
(5) Marriages by Muslims and Ethnic cultural
minorities provided they are solemnized in
accordance with their customs, rites or practices.
[Art. 33]
(6) Marriage by parties who have Cohabited for at
least 5 years without any legal impediment to
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Exceptions:
(1) Marriage between persons below 18 years old
[Art. 35(1)]
(2) Bigamous or polygamous marriage [Art. 35(4)]
(3) Mistake in identity [Art. 35 (5)]
(4) Marriages void under Article 53 [Art. 35 (6)]
(5) Psychological incapacity [Art. 36]
(6) Incestuous marriages [Art. 37]
(7) Marriage void for reasons of public policy [Art. 38]
Requirements
independent of the
parties
Lex loci celebrationis- if
valid where celebrated,
then valid everywhere;
forms of contracting
marriage are to be
regulated by the law
where it is celebrated.
FOREIGN DIVORCES
Formal requisites
Formal requisites
Essential requisites
Essential requisites
Llorente v. CA (2000):
Citizenship at the time the divorce is obtained
determines its validity. Since H was no longer a
Filipino citizen when he divorced W, the nationality
principle did not apply to him anymore and the divorce
is valid.
Garcia v. Recio (2001):
A divorce decree obtained by the foreign spouse is
recognized under Phil law if it is executed in
accordance with the foreigners national law. The
party must prove divorce as a fact and that said
divorce is obtained in conformity with the law allowing
it, before the Philippine courts can take judicial notice.
VOID AND VOIDABLE MARRIAGES
PRESUMPTION OF MARRIAGE
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VOID MARRIAGES
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Article 53 (Non-Recording):
Subsequent marriage of spouses, where the
requirements of recording under Art. 52 have not
have been complied with, shall be null and void.
psychological
Incestuous marriages
Article 37 (Incestuous):
(1) Between ascendants and descendants of any
degree, legitimate or illegitimate
(2) Between brothers and sisters, whether of the full
or half blood, legitimate or illegitimate
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Notes:
(1) Institution of a summary proceeding is not
sufficient. There must also be a summary
judgment. (Balane)
(2) Only the deserted/present spouse can file or
institute a summary proceeding for the
declaration of presumptive death of the
absentee. (Bienvenido case)
(3) There must have been diligent efforts on the part
of the deserted spouse to locate the absent
spouse. These diligent efforts correspond to the
requirement of the law for a well-founded belief.
Civil Code
As to period
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2 years under
extraordinary
4 years under
extraordinary
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Family Code
Civil Code
circumstances
circumstances
As to remarriage
In order to remarry,
summary proceeding is
necessary
Declaration of
presumptive death is not
necessary
Art. 43:
(1) Children of subsequent marriage conceived prior
to its termination considered legitimate; custody
and support decided by court in a proper
proceeding
(2) Property Regime dissolved and liquidated (party
in bad faith shall forfeit his/her share in favor of
the common children or if there are none, children
of the guilty spouse by a previous marriage, and in
case there are none, to the innocent spouse)
(3) Donation propter nuptias remains valid, (but if
the donee contracted marriage in bad faith,
donations will be revoked)
(4) Insurance benefits innocent spouse may revoke
designation of guilty party as beneficiary, even if
such designation is stipulated as irrevocable
(5) Succession Rights Party in bad faith disqualified
to inherit from innocent spouse, whether testate or
intestate
Upon reappearance,
judicial proceeding is
necessary to declare
marriage null and void
As to ground
Well founded belief that
Generally believed to be
the absent spouse is dead dead
Article 44:
Donations: If both parties of subsequent marriage
acted in bad faith, any donations and testamentary
dispositions made by one party to the other by
reason of marriage will be revoked
Connected Provisions
Art. 390, Civil Code. After an absence of 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.
Prescription
Art. 39. The action or defense for the declaration of
absolute nullity of a marriage shall not prescribe. (as
amended by RA 8533)
Notes:
Although 7 years is required for the presumption of
death of an absentee in the Civil Code, Art. 41 of the
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(3) Fraud
(a) Only those enumerated in Art. 46:
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(b)
(c)
(d)
(e)
(f)
Art. 46 STD
The STD is a type of
fraud which is a ground
for annulment
Must be concealed
Need not be serious nor
incurable
It is the concealment
that gives rise to the
annulment
(5) Impotency
(a) Must exist at time of marriage, must be
continuous, must be incurable; thus if
incapacity can be remedied or is removable by
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Prescription
(Art. 47)
Within 5 years after attaining
21.
Before party below 21 reaches
21.
Any time before the death of
either party
Fraud
Force,
intimidation,
undue
influence
Impotence
Injured party
Potent spouse
STD
Healthy party
Ratification
(Art. 45)
Free cohabitation after
attaining age of 21.
Free cohabitation of insane
party after insane party
comes to reason
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Ground
(Art. 45)
Prescription
(Art. 47)
Ratification
(Art. 45)
prescribes
Presence of Prosecutor
Art. 48: To prevent collusion between the parties,
fabrication or suppression of evidence, the prosecuting
attorney or fiscal shall appear on behalf of the State.
EFFECT OF PENDING ACTIONS/DECREE
Exceptions:
(a) Children conceived or born before the judgment
under Article 36 has become final and executor
(Art. 54)
(b) Children conceived or born of subsequent
marriages under Article 53 (Art. 54)
Legal Separation
GROUNDS FOR LEGAL SEPARATION
Note: The grounds for legal separation are exclusive.
(Article 55) (RPC Final DH BSAA)
EFFECTS OF NULLITY
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DEFENSES
GROUNDS FOR DENYING LEGAL SEPARATION (ARTICLE 56)
(4CMPRD):
EFFECTS OF PENDENCY
The Court shall provide for: (Art. 62, cf. Art. 49. FC)
(a) Support of spouses
(b) Custody of children
The court shall give custody of children to one of
them, if there is no written agreement between
the spouses. It shall also provide for visitation
rights of the other spouse.
(c) Visitation rights of the other spouse
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RECONCILIATION
HOW DONE
Void Marriages
Voidable Marriages
One is a minor
No authority to marry
Fraud
Force, Intimidation or
Undue Influence
Impotence
Serious and Incurable
STD
Psychological incapacity
Incestuous Marriages
Marriages against public
policy
Legal Separation
Repeated Physical Violence
Pressure to compel to change religious/political
affiliations
Corruption / Inducement to engage in prostitution
Final judgement with sentence of more than 6 yrs.
Drug Addiction / Habitual Alcoholism
Homosexuality / Lesbianism
Bigamous marriage (engaging in)
Sexual Infidelity
Attempts against the life
Abandonment without just cause for more than 1
year
Void/Voidable Marriages
Legal Separation
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EFFECTS OF AFFIDAVIT OF REAPPEARANCE, JUDICIAL DECLARATION OF NULLITY, ANNULMENT AND LEGAL SEPARATION
Void Marriages
ESSENTIAL OBLIGATIONS
(1) Live together (cohabitation Art. 68)
Exemption: One spouse living abroad or there are
valid and compelling reasons (Art. 69 (2))
Exemption To Exemption: Incompatibility with the
solidarity of the family (Art. 69 (2))
(2) Observe mutual love, respect, and fidelity
(3) Render mutual help and support (Art. 68)
FAMILY DOMICILE
The husband and wife shall fix the family domicile.
(Art. 69)
In case of disagreement, the court shall decide. (Art.
69 (1))
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SUPPORT
From the conjugal property; If none, income or the
fruits of their separate properties; if none, from their
separate properties (liable in proportion to their
properties).
MANAGEMENT OF HOUSEHOLD
This is the right and duty of both spouses.
MARRIAGE SETTLEMENTS
Art. 75. Future spouses may agree upon, in the
marriage settlement, which property regime will
govern their marriage (ACP, CPG, complete
separation of property, other regimes). However, in
the absence of a marriage settlement, or when the
regime agreed upon is void, the system of absolute
community of property as established by this Code
shall govern.
Requirements of marriage
settlements and any
modification thereof [Art. 77]
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Donations excluded
Grounds for
revocation of donation
propter nuptias [Art.
86]
Effects of judicial
declaration of nullity
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General rule: Spouses cannot donate to each other, directly or indirectly (donations made
by spouses to each other during the marriage are void). [Art. 87]
Exception: Moderate gifts on the occasion of any family rejoicing.
Harding v. Commercial Union, (1918): The prohibition on donations can only be assailed by
persons who bear such relation to the parties or the property itself, that their rights are
being interfered with. Here, the insurance company of the donated car cannot assail the
validity of the donation. In addition, the codal exception of moderate gifts depends on
the income class of the spouses and a car could be considered a moderate gift that does
not infringe the prohibition of donation between spouses.
Matabuena v Cervantes, (1971): The donation between common-law spouses falls within
the provision prohibiting donations between spouses during marriage.
Sumbad v. CA, (1999): The donation made by a man to a woman was held valid because no
proof was shown that they were still living in a common-law relationship at the time of the
donation.
Ordinary Donations
Express acceptance necessary
Cannot be made by minors
Cannot include future property
No limit to donation of present property provided
legitimes are not impaired
Grounds for revocation - in donation laws
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Art. 94
Support of the following:
(1) Spouses
(a) Even if not living together, except
when a spouse leaves conjugal
home without just cause
(b) Even during pendency of action for
legal separation/annulment of
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Support
(1) Parag. 1: Support of spouses and common children
(2) Parag. 6: Education of spouses, absolute
(3) Parag. 8: Education of common children, only for value of
donation
Support to surviving spouse & children during liquidation is
charged against the fruits or income of their shares in the
properties. [Art. 133]
Debts incurred in the exercise of a spouses profession [Javier v.
Osmea (1916)]
Loan contracts signed by both spouses are conjugal, and they are
jointly liable for payment, even if only one spouse signs a
subsequent promissory note [DPB v. Adil (1988)]
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Art. 148
Applicability
Man and woman living together as husband and wife, NOT
capacitated to marry
(a) Under 18 years old
(b) Adulterous relationship
(c) Bigamous/polygamous marriage
(d) Incestuous marriages under Art. 37
(e) Void marriages by reason of public policy under Art. 38
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The Family
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INCLUDES:
GUIDELINES:
Requisites:
(1) He must be a judgment creditor;
(2) His claim is not among those excepted under
Article155, and
(3) He has reasonable grounds to believe that the
family home is worth more than the maximum
amount fixed in Art. 157.
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Exceptions:
(1) Children of marriages void under Art. 36
(psychological incapacity).
(2) And under Art. 53 (the second marriage of a
widow or widower who has not delivered to his or
her children by his or her first marriage the
legitime of said children). (Sempio-Dy)
IMPUGNING LEGITIMACY
LEGITIMATE CHILDREN
WHO ARE LEGITIMATE CHILDREN (ART. 164)
Macadangdang v. CA (1980):
Mere proximate separation between the spouses is not
sufficient physical separation as grounds for
impugning legitimacy.
Andal v. Macaraig (1951):
Serious illness of the husband which absolutely
prevented him from having sexual intercourse with his
wife, like if the husband was already in comatose or a
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Jao v. CA (1987):
Blood-type matching is an acceptable means of
impugning legitimacy, covered by Art. 166(2), under
"biological or other scientific reasons." But this is only
conclusive of the fact of non-paternity.
PROOF OF FILIATION
Legitimate children may establish their filiation by
any of the following [Art. 172]:
(1) Primary Evidence
(a) Their record of birth appearing in the civil
registry.
(b) An admission of his filiation (legitimate or
illegitimate) by his parent or parents in a
public document or a private handwritten
instrument and signed by said parent or
parents
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(a) The child can bring the action during his or her
lifetime, and once commenced such action
survives even after the death of the parents. The
action does not prescribe as long as he lives.
(b) If the child dies during minority or in a state of
insanity, such action shall be transmitted to his
heirs, who shall have a period of five years within
which to institute the action.
ILLEGITIMATE CHILDREN
Illegitimate children may establish their illegitimate
filiation in the same way and on the same evidence
(primary or secondary) as legitimate children. [Art.
175]
ACTION FOR CLAIMING FILIATION [ART. 175]:
Agustin v. CA (2005):
DNA evidence can be used as proof of paternity.
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LEGITIMATED CHILDREN
"Legitimated" children are illegitimate children who
because of the subsequent marriage of their parents
are, by legal fiction, considered legitimate.
TO BE CAPABLE OF LEGITIMATION:
PROCEDURE:
RIGHTS:
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Adoption
Legitimation
Adoption
Legal effect
The law merely makes
The law merely creates by
legal what exists by
fiction a relation which
nature
did not in fact exist
Persons affected
Natural Children
Strangers (generally)
Procedure
Extrajudicial acts of
Always by judicial decree
parents
Who should apply
Both parents
Both parents, but with
exceptions allowing only
one of them to apply [RA
85520]
Effect on parent-child relationship
Same status and rights Creates a relationship
with that of a legitimate only between the child
child not only in relation and the adopting parents
to the legitimizing
parents but also to
other relatives
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PRE-ADOPTION PROCEDURES
of
abandoned
ADOPTION PROCEDURES
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Matching
Placement
Adoption Decree
Art. 187
The following may not be adopted:
(1) A person of legal age unless he is a natural child
of the adopter or of his/her spouse; or he was
treated as a natural child since minority
(2) An alien whose government has no diplomatic
relations with the Philippines
(3) A person already adopted unless his adoption has
been previously revoked/rescinded
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Three-in-one Procedure
(a) Correction of entries in birth certificate
(b) Declaration of abandonment
(c) Adoption decree
RA 8043 THE LAW ON INTER-COUNTRY
ADOPTION
INTER-COUNTRY ADOPTION refers to the socio-legal
process of adopting a Filipino child by a foreigner or
a Filipino citizen permanently residing abroad where
the petition is filed, the supervised trial custody is
undertaken, and the decree of adoption is issued
outside the Philippines
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Sayson v. CA (1992):
Adopted children have a right to represent their
adopters in successional interests. (Although an
adopted child shall be deemed to be a legitimate child
and have the same rights as the latter, these rights do
not include the right of representation.
The
relationship created by the adoption is between only
the adopting parents and the adopted child. It does
not extend to the blood relatives of either party.)
Republic v. Hernandez (1996):
The change of surname of the adoptee as a result of
the adoption and to follow that of the adopter does
not lawfully extend to or include the proper or given
name. The birth certificate, as it appears in the civil
register, contains the official name. It does not matter
if the mother, with all intention to abandon it later,
named the child for the sake of naming it. If they really
want to change the name, they must institute another
action under Rule 103 of the Rules of Court.
Tamargo v. CA (1992):
Where the petition for adoption was granted after the
child had shot and killed a girl, the Supreme Court did
not consider that retroactive effect may be given to the
decree of adoption so as to impose a liability upon the
adopting parents accruing at a time when adopting
parents had no actual or physically custody over the
adopted child. Retroactive effect may perhaps be given
to the granting of the petition for adoption where such
is essential to permit the accrual of some benefit or
advantage in favor of the adopted child. In the instant
case, however, to hold that parental authority had
been retroactively lodged in the adopting parents so as
to burden them with liability for a tortuous act that
they could not have foreseen and which they could not
have prevented would be unfair and unconscionable.
Support
WHAT IT COMPRISES
Consists of everything indispensable for sustenance,
dwelling, clothing, medical attendance, education
and transportation, in keeping with the financial
capacity of the family. [Art. 194]
(a) Education includes a persons schooling or
training for some profession, trade or vocation.
[Art. 194]
(b) Transportation includes expenses in going to and
from school, or to and from place of work. [Art.
194]
(c) The right and duty to support, especially the right
to education, subsists even beyond the age of
majority. [Art. 194]
(a) Spouses;
(b) Legitimate ascendants and descendants;
(c) Parents and their children (legitimate and
illegitimate) and the children of the latter
(legitimate and illegitimate);
(d) Legitimate brothers and sisters, whether of full or
half-blood; [Art. 195]
(e) Illegitimate brothers and sisters, whether of full
or half-blood, EXCEPT when the need for support
of one (of age) is due to a cause imputable to
his/her fault or negligence. [Art. 196]
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ORDER OF SUPPORT
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AMOUNT
The amount of support is in proportion to the means
of the provider and the needs of the receiver, and can
be reduced or increased if such circumstances
change. [Arts. 201, 202]
(a) Adoption;
(b) Guardianship; or
(c) Commitment of the child in an entity or
institution engaged in child care or in a childrens
home
WHEN DEMANDABLE
(a) The obligation to give support shall be
DEMANDABLE from the time the person who has
a right to receive the same needs it for
maintenance, but it shall not be PAYABLE except
from the date of judicial or extra-judicial demand.
[Art. 203]
(b) Support pendente lite may be claimed in
accordance with the Rules of Court. [Art. 203]
(c) Payment shall be made within the first five days
of each corresponding month. When the recipient
dies, his heirs shall not be obliged to return what
he has received in advance. [Art. 203]
OPTIONS
(a) Payment of the amount; or
(b) Receiving and maintaining the recipient in the
home of the provider, unless there is a legal or
moral obstacle for doing so.
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. (Art. 205)
Parental Authority
GENERAL PROVISIONS
Parental authority is the mass of rights and
obligations which parents have in relation to the
person and property of their children until their
emancipation, and even after this under certain
circumstances (Manresa).
PARENTAL AUTHORITY INCLUDES [ART. 209]:
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Substitute
Parental Authority
It is exercised in
case of death,
absence, or in
case
of
unsuitability of
parents.
AND
SPECIAL
PARENTAL
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Emancipation, as amended
by RA 6809
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Summary Judicial
Proceedings in the Family
Law
PROCEDURAL RULES PROVIDED FOR IN THIS
TITLE SHALL APPLY TO [ART. 238]:
(1) Separation in fact between husband and wife
(2) Abandonment by one of the other
(3) Incidents involving parental authority
SEPARATION IN FACT
A verified petition alleging the following facts is
required when [Art. 239]:
(a) A husband and wife are separated in fact; or,
(b) One has abandoned the other
JURISDICTION:
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Retroactive Effect
RETROACTIVE EFFECT
PROCEDURE
Note:
(a) Petitions filed under Articles 223, 225 and 235 of
this Code involving parental authority shall be
verified. [Art. 249]
(b) The rules in Chapter 2 hereof shall also govern
summary proceedings under this Chapter insofar
as they are applicable [Art. 253]
(c) The foregoing rules in Chapter 2 (Separation in
Fact) and (Incidents Involving Parental Authority)
hereof shall likewise govern summary
proceedings filed
(1) Declaration of presumptive death [Art. 41]
(2) Delivery of presumptive legitime [Art. 51]
(3) Fixing of family domicile [Art. 69]
(4) Disagreements regarding one spouses
profession, occupation, business, or activity
[Art. 73]
(5) Disposition or encumbrance of common
property in ACP where one spouse is
incapacitated or unable to participate in the
administration; administration of absolute
community in a disagreement and the wife
takes recourse within five years [Art. 96]
(6) Disposition or encumbrance of common
property in CPG where one spouse is
incapacitated or unable to participate in the
administration; administration of absolute
community in a disagreement and the wife
takes recourse within five years, [Art. 124]
Retroactive Effect
RETROACTIVE EFFECT
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SURNAMES OF CHILDREN
(1) Legitimate and legitimated children shall
principally use the surname of the father. [Art.
364]
(2) An adopted child shall bear the surname of the
adopter. [Art. 365]
(3) 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. [Art 366]
(4) Natural children by legal fiction shall principally
employ the surname of the father [Art. 367]
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Presumed Survivor
Notes:
(a) Institution of a summary proceeding is not
sufficient. There must also be a summary
judgment. (Balane)
(b) Only the deserted spouse can file or institute an
action a summary proceeding for the declaration
of presumptive death of the absentee.
(Bienvenido case)
(c) There must have been diligent efforts on the part
of the deserted spouse to locate the absent
spouse. These diligent efforts correspond to the
requirement of the law for a well-founded belief.
Older
Younger
One under 15
Male
Older
One between 15 and 60
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REQUISITES:
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Note:
(1) Although 7 years is required for the presumption
of death of an absentee in the Civil Code, Art. 41
of the Family Code makes an exception for the
purpose of remarriage by limiting such
requirement to 4 years.
(2) Art. 41 also limits the required 4 years in Art. 391
for absence under exceptional circumstances to
only 2 years.
Art. 392. If the absentee appears, or without appearing
his existence is proved, he shall recover his property in
the condition in which it may be found, and the price
of any property that may have been alienated or the
property acquired therewith; but he cannot claim either
fruits or rents.
Civil Registrar
ARTS. 407-413
Art. 407. Acts, events and judicial decrees concerning
the civil status of persons shall be recorded in the civil
register.
EXTRAORDINARY ABSENCE
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Exception:
(a) Clerical or typographical errors;
(b) Change of: first name or nickname, day and
month in the date of birth, or sex of a person
This exception applies where it is patently clear that
there was a clerical or typographical error or mistake
in the entry, which can be corrected or changed by
the concerned city or municipal civil registrar or
consul general in accordance with the provisions of
this Act and its implementing rules and regulations
Notes:
(a) 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
(i.e. misspelled name, misspelled place of birth,
mistake in the entry of day and month in the date
of birth or the sex of the person 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)
(b) Before the amendment by RA 10172, no correction
must involve the change of sex, nationality, age or
status of the petitioner. After the amendment,
change of sex can now be subjected to correction
without judicial order under the rules of this Act.
(c) 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 Registrar General.
Art. 410. 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.
Art. 411. 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.
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GROUNDS
Note:
All petitions for the 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 that by that first name
or nickname in the community: or
(3) The change will avoid confusion.
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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.
(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
(o) Changes of name
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PROPERTY
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PROPERTY
Characteristics (USA)
(1) Utility capacity to satisfy human wants
(2) Substantivity and Individuality separate and
autonomous existence
(3) Susceptibility of being appropriated what cannot
be appropriated because of their distance, depth,
or immensity cannot be considered things (i.e.
stars, ocean)
Classification
HIDDEN TREASURE
Hidden treasure any hidden and unknown deposit of
money jewels or other precious objects, the lawful
ownership of which does not appear. [NCC 439]
MOBILITY
IMMOVABLE
OR
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PROPERTY
(2) Par. 3
(a) Res vinta in Roman Law
(b) Attachment in a fixed manner: breakage or
injury in case of separation will be substantial
e.g. wells, sewers, aqueducts and railways
(i) Whether attached by the owner himself
or some other person
(3) Par. 7
Actually used (it has been spread over the land)
Immovables by Destination: are essentially movables
but by the purpose for which they have been placed
in an immovable, partake of the nature of an
immovable [Par. 4, 5, 6 & 9]
(1) Par. 4
(a) Requisites:
(i) Placed by the owner or by the tenant (as
agent);
(ii) With intention of attaching them
permanently even if adherence will not
involve breakage or injury.
(b) Where the improvement or ornaments placed
by the lessee are not to pass to the owner at
the expiration of the lease, they remain
movables for chattel mortgage purposes.
[Davao Sawmill v. Castillo(1935)]
(2) Par. 3 v. Par. 4
Par. 3
Cannot be separated
from immovable
without breaking or
deterioration
Need not be placed by
the owner
Real property by
incorporation
(4) Par. 6
Requisites:
(a) Placed by the owner or the tenant (as agent);
(b) With the intention of permanent attachment;
(c) Forming a permanent part of the immovable.
Par. 4
(5) Par. 9:
(a) A floating house tied to a shore and used as a
residence is considered real property,
considering that the waters on which it floats
are considered immovables.
(b) But if the floating house makes it a point to
journey from place to place, it assumes the
category of a vessel, and is considered
immovable
Can be separated
from immovable
without breaking or
deterioration
Must be placed by
the owner, or by his
agent, expressed or
implied
Real property by
incorporation and
destination
(3) Par. 5
(a) Immovability depends upon their being
destined for use in the industry or work in the
tenement;
(i) The moment they are separated, (from
the immovable or from the industry or
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PROPERTY
as
(2) By description
(a) Ability to change location whether it can be
carried from place to place;
(b) Without substantial injury to the immovable to
which it is attached.
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PROPERTY
BASED ON OWNERSHIP
Either of public dominion or private ownership [NCC
419]
Churches and other consecrated objects are
considered outside the commerce of man; they are
considered neither public nor private property
PUBLIC DOMINION
Public Lands
Characteristics:
(1) Not owned by the State but pertains to it as
territorial sovereign; to hold in trust for the
interest of the community.
(2) Purpose: For public use, and not for use by the
State as a juridical person
(3) Cannot be the subject of appropriation either by
the State or by private persons
Classifications:
Administered by the State: [NCC 420]
(1) Those intended for public use (roads, canals,
rivers, torrents, ports and bridges constructed by
the State, banks, shores, roadsteads, and others
of similar character)
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PROPERTY
CONSUMABLE
Kinds:
(1) Patrimonial property - Property owned by the
State and its political subdivisions in their private
capacity; all property of the State not included in
NCC 420 (on public dominion) [NCC 421-424]
(2) Property belonging to private persons, either
individually or collectively [NCC 425]
(1) Property of private ownership, besides the
patrimonial property of the State, provinces,
cities, and municipalities, consists of all
property belonging to private persons, either
individually or collectively.
(2) Refers to all property belonging to private
persons, natural or juridical, either individually
or collectively (co-owned property)
NON-CONSUMABLE
NON-FUNGIBLES
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PROPERTY
Ownership
DEFINITION
(a) Independent right of exclusive enjoyment and
control of a thing
(b) For the purpose of deriving all advantages
required by the reasonable needs of the
owner/holder of right and promotion of general
welfare
(c) Completely subjected to his will
(d) In everything not prohibited by public law or the
rights of another
OTHER CLASSIFICATIONS
BY THEIR PHYSICAL EXISTENCE
RIGHT IN GENERAL
RIGHTS INCLUDED IN OWNERSHIP [NCC 428]
BUNDLE OF RIGHTS
property produces
Jus Fruendi: Right to receive fruits
Jus Accessiones: Right to the accessories
Jus Abutendi: Right to consume a thing by use
Jus Disponendi: Right to alienate, encumber,
transform or even destroy the thing owned
(6) Jus Vindicandi: Right to recover possession of
property based on a claim of ownership
(7) Jus Possidendi: Right to possess the property
(Implied from all the other rights)
(2)
(3)
(4)
(5)
BY SUSCEPTIBILITY TO DETERIORATION
PROTECTING PROPERTY
BASIC DISTINCTIONS
BY REASON OF DESIGNATION
Real Rights
Definite active subject
who has a right against
ALL persons generally as
an indefinite passive
subject
Object is generally a
corporeal thing
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Personal Rights
Definite active subject
(creditor) and a definite
passive subject (debtor)
Subject
matter
is
always an incorporeal
thing
UP COLLEGE OF LAW
PROPERTY
Real Rights
Generally extinguished by
the loss or destruction of
the thing over which it is
exercised
Personal Rights
Personal right survives
the subject matter
It
is
binding
or
enforceable
only
against a particular
person giving rise to
personal
actions
against such debtor
LIMITATIONS ON OWNERSHIP
LIMITATIONS ON THE RIGHTS OF OWNERSHIP PROVIDED
BY LAW
Immovable Property
(1) Accion Reivindicatoria: Recovery of ownership of
real property
(a) Including but not limited to possession
(b) Prescription of Action: 30 years
(2) Accion Publiciana: Recovery of a better right to
possess (de jure)
(a) Judgment as to who has the better right of
possession
(b) Also, actions for ejectment not filed within 1
year must be filed as accion publiciana
(c) Prescription: 10 years
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PROPERTY
Venue
Summon
Prayer
Basis
Prior physical
possession
Real right of
Possession
Ownership
Real Action
In personam
Possession
Real Action
In personam
Possession
Real Action
In personam
Possession
Accion Reividicatoria
Reconveyance
Prescription
1 year
10 years
[NCC 555(4)]
GF: 10 years
BF: 30 years
[NCC 1137]
Unless--Torrens Title -- Unless
laches
Real Action
In personam
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Title
Ownership
10 years
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Action
Quieting of Title
Replevin
PROPERTY
Venue
Summon
Real Action
Quasi-in rem
Personal
Action
In personam
Accession
Prayer
Quieting of
Title
Possession
Basis
Ownership
Ownership
Prescription
(NCC 1456)
Imprescriptible
GF: 4 years
BF: 8 years
(3) Lease
(4) Antichresis
(a) He who receives the fruits has the obligation
to pay the expenses made by a third person in
their production, gathering, and preservation.
[NCC 443]
(b) Necessary expenses of production, gathering
and preservation must be borne by the
receiver of the fruits
CLASSIFICATION OF ACCESSION
(1) Accession Discreta (fruits) the right pertaining
to the owner of a thing over everything produced
thereby (by internal forces)
Kinds of Fruits
(1) Natural spontaneous products of soil and the
young and other products of animals [NCC 442
(1)]
Note:
(a) Natural and Industrial Fruits are real property
while still ungathered
(b) Only such as are manifest or born are
considered as natural or industrial fruits
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PROPERTY
Note:
(a) Bad faith leads to liability for damages and the
loss of the works or the improvement without
reimbursement
(b) Bad faith of one party neutralizes the bad faith
of the other
(2) Accession Continua Natural: Land deposits, etc.
(a) Alluvium: Soil is gradually deposited on banks
adjoining the river
Requisites
(i) Deposit of soil or sediment is gradual
and imperceptible
(ii) As a result of the action of the currents
of the waters of the river
(iii) Land where the accretion takes place is
adjacent to the banks of the rivers
(iv) Deemed to Exist: When the deposit of
the sediment has reached a level higher
than the highest level of the water
during the year
Effect
(i) Land automatically owned by the
riparian owner
(ii) BUT does not automatically become
registered property
Rationale
(i) To offset the owners loss from possible
erosion due to the current of the river
(ii) Compensate for the subjection of the
land to encumbrances and legal
easements
Presumptions:
(a) All works, sowing and planting are presumed
made by the owner
(b) All works are presumed made at the owners
expense, unless the contrary is proved
(c) The owner of the principal thing owns the
natural, industrial and civil fruits, except when
the following persons exist:
(i) Possessor in Good Faith
(ii) Usufructuary
(iii) Lessee
(iv) Antichretic creditor
Effect:
The ownership of the detached property is
retained by the owner subject to removal
within 2 years from the detachment
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PROPERTY
Landowner
Good Faith
Bad Faith
Builder,
Planter,
Sower
[BPS]
Good Faith
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PROPERTY
Landowner
Bad Faith
Good Faith
Bad Faith
SAME AS
GF: GF
Landowner
Material
Man
Good Faith
Bad Faith
Good
Faith
Bad
Faith
SAME AS
GF: GF
Owner of Material
Good faith
Right to acquire the improvements after paying the
value of materials.
Good faith
(1) Limited right of removal if there would be no injury to
work constructed, or without plantings or
constructions being destroyed. [Article 447]
(2) Right to receive payment for value of materials
Good faith
(a) Right to receive payment for value of materials
(b) Absolute right of removal of the work constructed in
any event
(c) Right to be indemnified for damages
Bad faith
Lose materials without right to indemnity
Bad faith
Acquire BPS after paying its value and paying indemnity
for damages [Article 447] but subject to OMs right to
remove
Good faith
(1) Right to acquire the improvements without paying
indemnity
(2) Right to acquire indemnity for damages if there are
hidden defects known to OM
Bad faith
Same as though acted in good faith under Article 453
Bad faith
Same as though acted in good faith under Article 453
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Case 2: BPS builds, plants, or sows on anothers ;and using his own materials
Landowner
Good faith
Good faith
Landowner has option to:
BPS has right to retain (right of retention) the land until
(a) Acquire the improvement after paying indemnity the payment of indemnity
which may be the original cost of improvement OR
increase in value of the whole brought about by the NOTE: During this period BPS is not required to pay
improvement
rent.
(b) Sell the land to the BP or collect rent from sower
UNLESS value of land is more than the thing built,
planted or sown or BP shall pay rent fixed by parties
or by the court in case of disagreement.
NOTE: Landowner can be forced to choose under pain
of direct contempt or court can choose for him.
Good faith
Landowner has right to collect damages in any case and
option to:
(a) Acquire improvements without paying indemnity if
the improvements are still standing on the land
(b) Sell the land to BP or collect rent from the sower
unless value of the improvements in which case
there will be a forced lease
(c) Order demolition of improvements or restoration of
land to its former condition at the expense of the
BPS
Landowner must pay for necessary expenses for
preservation
Bad faith
(1) Landowner must indemnify BPS for the
improvements and pay damages as if he himself did
the BPS
(2) Landowner has no option to sell the land and cannot
compel BPS to buy the land unless BPS agrees to
Bad faith
Same as though acted in bad faith under Article 453
Bad faith
(1) Pay damages to landowner
(2) BPS lose materials without right to indemnity
(3) No right to refuse to buy the land
(4) Recover necessary expenses for preservation of land
Good faith
BPS has right to :
(1) Be indemnified for damages
(2) Remove all improvements in any event
Bad faith
Same as though acted in bad faith under Article 453
Case 3: BPS builds, plants or sows on anothers land with materials owned by third persons
Landowner
BPS
Owner of Material
Good faith
(a) Right to acquire improvements
and pay indemnity to BPS;
subsidiarily liable to OM
(b) Has option to:
(1) Sell land to BP except if the
value of the land is
considerably more
(2) Rent to sower
Good faith
(1) Right to acquire improvements
and pay indemnity to BPS
(2) Has option to:
(1) Sell land to BP except if the
value of the land is
Good faith
(1) Right of retention until necessary
and useful expenses are paid
(2)Pay value of materials to OM
Good faith
(1) Collect value of material
primarily from BPS and
subsidiarily liable for landowner
if BPS is insolvent
(2) Limited right of removal
Good faith
(1) Right of retention until necessary
and useful expenses are paid.
(2)Keep BPS without indemnity to
OM and collect damages from
him
Bad faith
(1) Lose the material without right
to indemnity
(2) Must pay for damages to BPS
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PROPERTY
Landowner
considerably more
(2) Rent to sower
(3) Without subsidiary liability for
cost of materials
Good faith
(1) Landowner has right to collect
damages in any case and option
to:
(1) Acquire improvements w/o
paying for indemnity; or
(2) Demolition or restoration; or
(3) Sell to BP, or to rent to sower
(2) Pay necessary expenses to BPS
Bad faith
Same as when all acted in good
faith under Article 453
Bad faith
(1) Acquire improvement after
paying indemnity and damages
to BPS unless latter decides to
remove
(2) Subsidiarily liable to OM for
value of materials
Bad faith
(1) Acquire improvements after
indemnity; subsidiarily liable to
OM for value of materials
(2) Has option to:
(a) Sell the land to BP except if
the value of the land is
considerably more
(b) Rent to sower
Good faith
(a) Acquire improvement after
paying indemnity; subsidiarily
liable to OM
(b) Landowner has option to:
(a) Sell land to BP except if value
of land is considerably more
(b) Rent to sower
Bad faith
Acquire improvements and pay
indemnity and damages to BPS
unless latter decides to remove
materials
BPS
Owner of Material
Bad faith
Recover necessary expenses for
preservation of land from landowner
unless landowner sells land
Bad faith
(1) Recover value from BPS (as if
both are in good faith)
(2) If BPS acquires improvement,
remove materials if feasible w/o
injury
(3) No action against landowner but
liable to landowner for damages
Bad faith
Same as when all acted in good
faith under Article 453
Good faith
(1) May remove improvements
(2)Be indemnified for damages in
any event
Bad faith
Same as when all acted in good
faith under Article 453
Good faith
(1) Remove materials if possible
w/o injury
(2) Collect value of materials from
BPS; subsidiarily from landowner
Bad faith
(a) Right of retention until necessary
expenses are paid
(b)Pay value of materials to OM and
pay him damages
Good faith
(a) Collect value of materials
primarily from BPS and
subsidiarily from landowner
(b) Collect damages from BPS
(c) If BPS acquires improvements,
remove materials in any event
Bad faith
(1) Right of retention until necessary
expenses are paid
(2)Pay value of materials to OM
(3) Pay damages to OM
Good faith
- Collect value of materials
primarily
from
BPS
and
subsidiarily from landowner
- Collect damages from BPS
- If BPS acquires improvements,
absolute right of removal in any
event
Bad faith
(1) No right to indemnity
(2) Loses right to material
Good faith
(1) Receive indemnity for damages
(2)Absolute right of removal of
improvements in any event
Three Types:
(1) Conjunction or Adjunction - process where 2
movables belonging to different owners are
attached to each other to form a single object
Kinds:
(a) Commixtion mixture of solids
(b) Confusion mixture of liquids and gases
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PROPERTY
Adjunction
Requisites
(1) There are 2 movables belonging to 2 different
owners
(2) They are united in such a way that they form a
single object
(3) They are so inseparable that their separation
would impair their nature or result in substantial
injury to either component
Mixture
Kinds of Mixtures:
(1) Commixtion: mixture of solid things
(2) Confusion: mixture of liquid things
Kinds of Adjunction
(1) Inclusion or engraftment e.g. a diamond is set
on a gold ring
(2) Soldadura or soldering e.g. when lead is united
or fused to an object made of lead
(a) It is ferruminacion if both the accessory and
principal objects are of the same metal; and
(b) Plumbatura, if they are of different metals
(3) Escritura or writing e.g. when a person writes on
paper belonging to another;
(4) Pintura or painting e.g. when a person paints on
canvas belonging to another;
(5) Tejido or weaving e.g. when threads belonging
to different owners are used in making textile
Rules:
(1) Mixture by will of the owners
(a) First governed by their stipulations
(b) In the absence of stipulation, each owner
acquires a right or interest in the mixture in
proportion to the value of his material
(2) Mixture caused by an owner in good faith or by
chance
(a) Share of each owner shall be proportional to
the value of the part which belonged to him
(b) If things mixed are exactly the same kind and
quality, divide mixture equally/proportionally
(c) If things mixed are of different kind or quality,
a co-ownership arises
(d) If they can be separated without injury,
owners may demand separation
(e) Expenses borne by owners pro rata
(f) NOTE: Good faith does not necessarily
exclude negligence, which gives rise to
damages
Specification
Definition:
Takes place when the work of a person is done on the
material of another, such material, in consequence of
the work itself, undergoes a transformation
Rules:
(1) Person in good faith
General rule:
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PROPERTY
Exception:
If material is more valuable than the new thing,
owner of material may choose:
(a) To take the new thing but must pay for the
work or labor
(b) To demand indemnity for the material
If the owner was in bad faith, maker may
appropriate the new thing without paying the
owner OR require the owner to pay him the value
of the thing or his work, with right to indemnity
Exception:
The first option is not available in case the value
of the work, for artistic or scrientific reasons, is
considerably more than that of the material
(3) Person made use of material with consent and
without objection of owner
Rights shall be determined as though both acted
in good faith
REQUIREMENT
IN GENERAL
(1) Applicable to real property
(2) Basis: Equity comes to the aid of the plaintiff who
would suffer if the instrument (which appear to
be valid but is in reality void, ineffective, voidable
or unenforceable) was to be enforced.
PURPOSE
(1) To declare:
(a) The invalidity of a claim on a title
(b) The invalidity of an interest in property
(2) To free the plaintiff and all those claiming under
him from any hostile claim on the property.
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Co-ownership
DEFINITION:
The form of ownership when the ownership of an
undivided thing or right belongs to different persons.
[NCC 484]
REQUISITES:
(1) Plurality of owners
(2) Object must be an undivided thing or right
(3) Each co-owners right must be limited only to his
ideal or abstract share of the physical whole
PRESCRIPTION/NON-PRESCRIPTION OF
ACTION
PRESCRIPTION OF ACTION
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(3) Easement of Party Wall: co-ownership of partowners of a party wall (NCC 658)
(4) Condominium Law: co-ownership of the common
areas by holders of units
Sec. 6, RA 4726. The Condominium Act. Unless
otherwise expressly provided in the enabling or
master deed or the declaration of restrictions, the
incidents of a condominium grant are as follows:
(a) Unless otherwise, provided, the common
areas are held in common by the holders of
units, in equal shares, one for each unit.
CONTRACTS
SOURCES OF CO-OWNERSHIP
Law, contract, succession, testamentary disposition
or donation inter vivos, fortuitous event or chance,
and by occupancy
No prescription shall run in favor of a co-owner or coheir against his co-owners or co-heirs so long as he
expressly or impliedly recognizes the co-ownership.
LAW
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[NCC 1775]
Articles are kept secret among the members and any
one of the members may contract in his own name
with third persons:
(1) governed by the provisions relating to coownership
RIGHT OF CO-OWNERS
RIGHT TO THE SHARE IN THE BENEFITS AS WELL AS
CHARGES [NCC 485]
SUCCESSION
Limitation:
That he use the thing in accordance with the purpose
for which it is intended
[NCC 488]
(1) Any one of the other co-owners may exempt
himself by renouncing so much of his undivided
interest as may be equivalent to his share of the
expenses and taxes.
(2) No waiver if it is prejudicial to the co-ownership
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Embellishment or improvements
(1) Notify co-owners of improvements and
embellishments to be made
If no notification, co-owner who advanced the
expenses has the right to reimbursement if he
proves the necessity of such repairs and the
reasonableness of the expense
(1) May exercise this in case the shares of other coowners are sold to a third person
(2) If 2 or more co-owners wish to exercise this right
= in proportion to their share in the thing
By whom
(1) A third person [NCC 1106]
(2) A co-owner against the other co-owners
Requisites
(1) Unequivocal acts of repudiation of the rights of
the other co-owners (oust the other co-owners)
(a) Must be shown by clear and convincing
evidence
(b) Must be within the knowledge of the other coowners
(c) Must not be a mere refusal to recognize the
others as co-owners
(2) Open and adverse possession - Not mere silent
possession
RULES:
On Renunciation
(1) Other co-owners may choose not to contribute to
the expenses by renouncing so much of his
undivided interest as may be equivalent to his
share of the necessary expenses and taxes
(2) Must be express; thus, failure to pay is not a
renunciation
(3) Requires the consent of other co-owners because it
is a case of dacion en pago (cessation of rights)
involving expenses and taxes already paid (J.B.L.
Reyes)
(4) Cannot renounce his share if it will be prejudicial
to another co-owner
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PARTITION OR DIVISION
Effect:
(1) Confers exclusive ownership of the property
adjudicated to him
(2) Co-heirs shall be reciprocally bound to warrant
the title to and the quality of each property
adjudicated
(3) Reciprocal obligation of warranty shall be
proportionate to the respective hereditary shares
of co-heirs
(4) An action to enforce warranty must be brought
within 10 years from the date the right accrues
(5) The co-heirs shall not be liable for the
subsequent insolvency of the debtor of the estate
Possession
DEFINITION [NCC 523]
The holding of a thing or the enjoyment of a right
CONCEPT OF POSSESSION
(1) To possess, in a grammatical sense, means to
have, to physically and actually occupy a thing,
with or without right. (Sanchez Roman)
(2) It is the holding of a thing or a right, whether by
material occupation or by the fact that the thing
or the right is subjected to the action of our will.
(Manresa)
(3) It is an independent right apart from ownership.
Right of Possession
(jus possessionis)
Independent right
Right to possess
(jus possidendi)
Incident to
ownership
CHARACTERISTICS
ESSENTIAL REQUISITES OF POSSESSION
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DEGREES OF POSSESSION
CASES OF POSSESSION
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(b)
(c)
(d)
(e)
PROPERTY
ACQUISITION OF POSSESSION
WAYS OF ACQUIRING POSSESSION [NCC 531]
(1) By material occupation
(a) Material occupation used in its ordinary
meaning and not in its technical meaning
under NCC 712, which defines occupation as a
mode of acquiring ownership.
(b) Possession acquired by material occupation is
only possession as a fact, not the legal right of
possession.
(c) Constructive delivery is considered as an
equivalent of material occupation in two
situations where such occupation is essential
to the acquisition of possession:
(i) Tradicion brevi manu takes place when one
who possess a thing by title other than
ownership, continues to possess the same
under a new title, that of ownership.
(ii) Tradicion constitutum possessorium takes
place when the owner alienates the thing,
but continues to possess the same under a
different title.
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Note:
(a) Bad faith is personal and intransmissible. Its
effects must be suffered only by the person who
acted in bad faith; his heir should not be saddled
with the consequences
(b) Good faith can only benefit the person who has it;
and the good faith of the heir cannot erase the
effects of bad faith of his predecessor.
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EFFECTS OF POSSESSION
(1) Right to be Protected in His Possession (NCC
539)
(2) Entitlement to fruits possessor in good
faith/bad faith (Art. 544, 549)
(3) Reimbursement for ExpensesPossessor in Good
Faith/Bad Faith
RIGHT TO BE PROTECTED IN HIS POSSESSION (NCC 539)
IN GOOD
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Necessary Expenses
(1) Imposed by the thing itself and have no relation
to the desire or purpose of the possessor
(2) They are the cost of living for the thing and
must be reimbursed to the one who paid them,
irrespective of GF or BF.
(a) Only the possessor in GF may retain the thing
until he has been reimbursed therefor
(3) Those imposed for the preservation of the thing.
They are not considered improvements; they do
not increase the value of the thing, but merely
prevent them from becoming useless.
Useful Expenses
(1) Incurred to give greater utility or productivity to
the thing
(2) e.g. Wall surrounding an estate, an irrigation
system, planting in an uncultivated land, a
fishpond, an elevator in the building, electric
lighting system
(3) They are reimbursed only to the possessor in GF
as a compensation or reward for him. Possessor
in BF cannot recover such expenses
(4) 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 refunds
the expenses or pays the increase in value which
the thing may have acquired by reason thereof
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Result: Benefit or
advantage is only for the
convenience of definite
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Useful Expenses
greater facilities for
producing them
Possessor in GF
possessors
Possessor in BF
Includes expenses
resulting in real benefit
or advantage to the
thing
Result: Benefit or
advantage is only for the
convenience of definite
possessors
Charges
Possessor In Bad Faith
(1) Reimburse the fruits received and those which
the legitimate possessor could have received
(2) Has a right only to the reimbursement of
necessary expenses and the production,
gathering, and preservation of fruits
(3) Does not have right to reimbursement of
expenses for luxury but may remove them as long
as the principal thing suffers no injury, or may sell
them to the owner.
(4) Liable for deterioration or loss in every case, even
if caused by a fortuitous event
a. As opposed to a possessor in good faith, not
liable for the deterioration or loss, except
when proved that he has acted with
fraudulent intent or negligence, after the
judicial summons
Note:
(1) Costs of litigation over the property shall be
borne by every possessor. (NCC 550)
(2) Improvements caused by nature or time shall
always inure to the benefit of the person who has
succeeded in recovering possession (NCC 551)
(1) Includes all the natural accessions referred to
by articles 457-465, and all those which do
not depend upon the will of the possessor.
(e.g. widening of the streets, rising of
fountains of fresh or mineral water, increase
of foliage of trees)
Possessor in GF
Ornamental Expenses
Limited right of removal Limited right of removal
(548)
(549)
Deterioration or Loss
Possessor in BF
Fruits Received
Entitled to the fruits
Must reimburse the
while possession is in GF
legitimate
possessor
and
before
legal
(549)
interruption (544)
Costs of Litigation
Bears cost (550)
Pending Fruits
Entitled to part of the Must reimburse the
expenses of cultivation, legitimate
possessor
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Requisites of Title
(a) Possession in GF
(b) The owner has voluntarily parted with the
possession of the thing
(c) The possession is in the concept of an owner
(2) Nevertheless, one who has lost any movable or
has been unlawfully deprived thereof may recover
it from the person in possession
When the owner can recover
(a) Has lost the thing
(b) Has been unlawfully deprived thereof
EFFECTS OF POSSESSION
EFFECTS OF POSSESSION IN THE CONCEPT OF OWNER
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RIGHTS OF POSSESSOR
ABANDONMENT
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NATURAL CHARACTERISTICS
(1) Includes only the right to use (jus utendi) and the
right to the fruits (jus fruendi)
(2) Usufructuary must preserve the form or
substance of the thing
(a) Preservation is a natural requisite, not
essential because the title constituting it or the
law may provide otherwise
(b) Reason for preserving form and substance
(i) To prevent extraordinary exploitation;
(ii) To prevent abuse, which is frequent;
(iii) To prevent impairment.
(c) Exception: In an abnormal usufruct, alteration
is allowed
(3) Usufruct is extinguished by the death of the
usufructuary
(a) Natural because a contrary intention may
prevail
Kinds of Animals
(1) Wildthose which live naturally independent of
man
(2) Domesticatedthose which, being wild by nature,
have become accustomed to recognize the
authority of man. When they observe this custom,
they are placed in the same category as domestic
and when they lose it, they are considered as
wild.
(3) Domestic or Tamethose which are born and
reared ordinarily under the control and care of
man; they are under the ownership of man, and
do not become res nullius unless they are
abandoned.
CLASSIFICATION
BY ORIGIN
Usufruct
CONCEPT (NCC 562):
Usufruct gives a right to enjoy the property of
another with the obligation of preserving its form
and substance, unless the title constituting it or the
law otherwise provides
OBJECTS OF USUFRUCT
(1) Independent Rights
(a) A servitude which is dependent on the
tenement to which it attaches cannot be the
object of usufruct
(2) Things
(a) Non-consumable things
(b) Consumable things, but only as to their value
if appraised, or on an equal quantity and
quality if they were not appraised
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As to the fruits
(1) Total: all consumed by the usufruct
(2) Partial: only on certain aspects of the usufructs
fruits
As to object
(1) Singular: only on particular property of the owner
(2) Universal: pertains to the whole property;
A universal usufructuary must pay the debts of
the naked owner, if stipulated. Article 758 and
759 on donations apply.
BY OBJECT OF USUFRUCT
Things
(1) Normal: involves non-consummable things where
the form and substance are preserved
(2) Abnormal or irregular: when the usufruct includes
things which cannot be used without being
consumed
(a) The usufructuary has right to make use of
them under the obligation of paying their
appraised value at the termination of the
usufruct, if they were appraised when
delivered.
(b) In case they were not appraised, he has the
right to return the same quantity and quality,
or pay their current price at the time the
usufruct ceases (NCC 574)
(c) In reality, the usufruct is not upon the
consumable things themselves, but upon the
sum representing their value or upon a
quantity of things of the same kind and
quality.
(d) The usufructuary, in effect, becomes the
owner of the things in usufruct, while the
grantor becomes a mere creditor entitled to
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RIGHTS
Belong
owner
to
the
naked
Exceptions:
(1) Legal usufructs cannot be leased.
(2) Caucion juratoria (lease would show that the
usufructuary does not need the property badly)
Without
need
to The
owner
shall
reimburse the expenses to reimburse
to
the
the owners
usufructuary
ordinary
cultivation
expenses
from the proceeds of the
fruits (not to exceed the
value of the fruits)
rd
Rules as to Lease
(1) The property in usufruct may be leased even
without the consent of the owner.
(2) The lease should be for the same period as the
usufruct.
(a) EXCEPT: leases of rural lands continues for
the remainder of the agricultural year
(b) A lease executed by the usufructuary before
the termination of the usufruct and subsisting
after the termination of the usufruct must be
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To Make An Inventory:
(1) Requisites
(a) Immovables must be described
(b) Movables must be appraised because they are
easily lost or deteriorated.
(2) Concurrence of the owner in the making of the
inventory
(3) Expenses for the making of the inventory are
borne by the usufructuary
(4) Inventory may be in a private document, except
when immovables are involved (a public
rd
instrument is prescribed to affect 3 persons)
(5) Failure to make an inventory does not affect the
rights of the usufructuary to enjoy the property
and its fruits.
(a) A prima facie presumption arises that the
property was received by the usufructuary in
good condition
(b) Even if he is already in possession, he may still
be required to make an inventory.
(6) Exception to the requirement of inventory
(a) When no one will be injured , the usufructuary
may be excused from this obligation
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570)
(1) Each payment due shall be considered as the
proceeds or fruits of such right
(2) Shall be distributed as civil fruits
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Exceptions:
(1) When it is so stipulated; in which case the
usufructuary shall be liable for the debt specified.
(2) If there is no specification, he is liable only for
debts incurred by the owner before the usufruct
was constituted.
(3) When the usufruct is constituted in fraud of
creditors
Applies when:
(1) The usufruct is a universal one
(2) And the naked owner Has debts or is obliged to
make periodical payments (whether or not there
be known capital)
General rule: The usufructuary is not liable for the
owners debts.
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USUFRUCT
AND
NAKED
DEATH OF USUFRUCTUARY
Exceptions:
(1) In multiple usufructs: it ends at the death of the
last survivor (NCC 611)
(a) If simultaneously constituted: all the
usufructuaries must be alive (or at least
conceived) at the time of constitution.
(b) If successively constituted:
(i) If by virtue of donation all the doneesusufructuaries must be living at the time
of the donation;
(ii) If by will there should only be 2
successive usufructuaries and both must
have been alive at the time of testators
death.
RENUNCIATION OF USUFRUCT
Situation
Effect
Art. 607
If destroyed property is not insured
Art. 608
If destroyed property is insured before termination of the
usufruct
When insurance premium
paid by owner and
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If
owner
rebuilds,
usufruct subsists on new
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Situation
PROPERTY
building.
If owner does not rebuild
interest upon insurance
proceeds
paid
to
usufructuary
Owner
entitled
to
insurance money (no
interest
paid
to
usufructuary).
If he does not rebuild,
usufruct continues over
remaining land and/or
owner may pay interest
on value of both
materials and land (607).
If
owner
rebuilds,
usufruct
does
not
continue
on
new
building, but owner must
pay interest on value of
land and old materials.
Effect
usufructuary (par. 1)
Easement
PRESCRIPTION
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CLASSIFICATION
AS TO RECIPIENT OF BENEFITS
AS TO CAUSE OR ORIGIN
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RELEVANCE OF CLASSIFICATIONS
DETERMINES WHAT EASEMENTS CAN BE ACQUIRED BY
PRESCRIPTION
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BY PRESCRIPTION
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RIPARIAN BANKS
DAM
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DRAWING WATER
RIGHT OF WAY
AQUEDUCT
(1) Any person who may wish to use upon his own
estate any water of which he can dispose shall
have the right to make it flow through the
intervening estates, with the obligation to
indemnify their owners, as well as the owners of
the lower estates upon which the waters may
filter or descend.
(2) Person desiring to make use of this right is
obliged to:
(a) To prove that he can dispose of the water and
that it is sufficient for the use for which it is
intended;
(b) To show that the proposed right of way is the
most convenient and the least onerous to
third persons;
(c) To indemnify the owner of the servient estate
in the manner determined by the laws and
regulations
(3) Easement of aqueduct for private interest cannot
be imposed on buildings, courtyards, annexes, or
outhouses, or on orchards or gardens already
existing
(4) This easement does not prevent the owner of the
servient estate from closing or fencing it, or from
building over the aqueduct in such manner as not
to cause the latter any damage, or render
necessary repairs and cleanings impossible
(5) This easement is considered as continuous and
apparent, even though the flow of the water may
not be continuous, or its use depends upon the
needs of the dominant estate, or upon a schedule
of alternate days or hours.
SLUICE GATE
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Extinguishment
(1) Owner has joined the dominant estate to another
abutting the public road
(2) A new road is opened giving access to the
isolated estate
(3) Extinguishment is NOT automatic. The owner of
the servient estate must ask for such
extinguishment
(4) Indemnity paid to the servient owner must be
returned:
(a) If easement is permanent: value of the land
must be returned
(b) If easement is temporary: nothing to be
returned
Special Rights Of Way
(1) Right of way to carry materials for the
construction, repair, improvement, alteration or
beautification of a building through the estate of
another
(2) Right of way to raise on anothers land
scaffolding or other objects necessary for the
work
(a) If it be indispensable for the construction,
repair,
improvement,
alteration
or
beautification of a building, to carry materials
through the estate of another, or to raise
therein scaffolding or other objects necessary
for the work, the owner of such estate shall be
obliged to permit the act, after receiving
payment of the proper indemnity for the
damage caused him. (NCC 656)
(3) Right of way for the passage of livestock known
as animal path, animal trail, watering places,
resting places, animal folds (NCC 657)
(a) Easements of the right of way for the passage
of livestock known as animal path, animal
trail or any other, and those for watering
places, resting places and animal folds, shall
be governed by the ordinances and
regulations relating thereto, and, in the
absence thereof, by the usages and customs
of the place.
(b) Without prejudice to rights legally acquired,
the animal path shall not exceed in any case
the width of 75 meters, and the animal trail
that of 37 meters and 50 centimeters.
(c) Whenever it is necessary to establish a
compulsory easement of the right of way or
for a watering place for animals, the
provisions of this Section and those of Articles
640 and 641 shall be observed. In this case
the width shall not exceed 10 meters
PARTY WALL
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Nature
(1) A common wall which separates two estates,
built by common agreement at the dividing line
such that it occupies a portion of both estates on
equal parts
(2) A party wall is a co-ownership (a kind of
compulsory co-ownership)
(a) Each owner owns part of the wall but it
cannot be separated from the other portions
belonging to the others. A party wall has a
special characteristic that makes it more of an
easement as it is called by law
(b) An owner may use a party wall to the extent
of the portion on his property.
Co-Ownership
Party Wall
No such limitation
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Definition
(1) Easement of light (jus luminum) is the right to
admit light from the neighboring estate by virtue
of the opening of a window or the making of
certain openings
(2) Easement of view (jus prospectus) is the right to
make openings or windows, to enjoy the view
through the estate of another and the power to
prevent all constructions or works which would
obstruct such view or make the same difficult.
(a) Necessarily includes the easement of light
(b) It is possible to have light only without view
Nature
(1) Positive: Opening a window through a party wall
When a part owner of a party wall opens a
window therein, such act implies the exercise of
the right of ownership by the use of the entire
thickness of the wall = invasion of the right of the
other part owners / violation of the right to
proportional use of the party wall.
(2) Negative: Formal prohibition upon the owner of
the adjoining land or tenement
(a) When a person opens a window on his own
building, he does nothing more than
exercise an act of ownership on his property.
(i) Does not establish an easement
(b) Coexistent is the right of the owner of the
adjacent property to build on his own land,
even if such structures cover the window
(c) If the adjacent owner does not build
structures to obstruct the window, such is
considered mere tolerance and NOT a
waiver of the right to build.
(d) An easement is created only when the
owner opens up a window, prohibits or
restrains the adjacent owner from doing
anything, which may tend to cut off or
interrupt the light + prescriptive period
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Requisites
(1) Easement must be continuous and apparent.
(2) Easement must have existed for 10 years.
(3) NO NEED for good faith or just title.
NUISANCE
EXTINGUISHMENT OF EASEMENTS
(1) By merger in the same person of the ownership of
the dominant and servient estates
(2) By nonuser for ten years
(3) When either or both of the estates fall into such
condition that the easement cannot be used
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MERGER
OR
FULFILLMENT
OF
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Nuisance
A nuisance is any act, omission, establishment,
business, condition of property, or anything else
which:
(1) Injures or endangers the health or safety of
others; or
(2) Annoys or offends the senses; or
(3) Shocks, defies or disregards decency or morality;
or
(4) Obstructs or interferes with the free passage of
any public highway or street, or any body of
water; or
(5) Hinders or impairs the use of property.
Per se
NUISANCE V. NEGLIGENCE
Whether the defendants
use of his property was
unreasonable
as
to
plaintiff, without regard
to foreseeability of injury.
Per accidence
Injury is immediate
Whether
it
was
unreasonable for the
defendant to act as he
did in view of the
threatened danger or
harm to one in plaintiffs
position.
Negligence
Trespass
Nuisance
Negligence
ACCORDING TO NATURE
NUISANCE V. TRESPASS
Injury is consequential
Nuisance
CLASSES
Nuisance
Public
Affects the public at
large
Need not affect the
whole community or
ordinarily
PAGE 114
Private
Affects the individual or
a limited number of
individuals only
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Public
PROPERTY
Private
LIABILITY OF TRANSFEREES
(3) Mixed
NATURE OF LIABILITY
REGULATION OF NUISANCES
PUBLIC NUISANCE
Remedies
The remedies against a public nuisance are:
(1) A prosecution under the Penal Code or any local
ordinance: or
(2) A civil action; or
(3) Abatement, without judicial proceedings.
(a) It must be reasonably and efficiently exercised
(b) Means employed must not be unduly
oppressive on individuals, and
(c) No more injury must be done to the property
or rights of individuals than is necessary to
accomplish the abatement.
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PRIVATE NUISANCE
Remedies
The remedies against a private nuisance are:
(1) A civil action; or
(2) Abatement, without judicial proceedings.
(a) The procedure for extrajudicial abatement of
a public nuisance by a private person be
followed
(b) Person extrajudicially abating a nuisance
liable for damages if:
(i) If he causes unnecessary injury
(ii) If an alleged nuisance is later declared
by the courts to be not a real nuisance
Rules:
(1) The right must be exercised only in cases of
urgent or extreme necessity. The thing alleged to
be a nuisance must be existing at the time that it
was alleged to be a nuisance.
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Title
Means
Proximate cause
Remote cause
Hidden treasure
He who by chance discovers hidden treasure in
anothers property: shall be allowed to the finder.
OCCUPATION
Note: Ownership of land cannot be acquired by
occupation
REQUISITES
KINDS
Of Animals
(1) Wild or feral animals seizure (hunting/fishing)
in open season by means NOT prohibited
(2) Tamed/domesticated animals General Rule:
belong to the tamer, but upon recovering
freedom, are susceptible to occupation UNLESS
claimed within 20days from seizure by another
(3) Tame/domestic animals not acquired by
occupation EXCEPT when ABANDONED
SPECIAL RULES
UP COLLEGE OF LAW
PROPERTY
Future property
(1) Donations cannot comprehend future property.
(2) Future property is understood anything which
the donor cannot dispose of at the time of the
donation.
KINDS OF DONATIONS
NATURE
Requisites
(1) CONSENT and CAPACITY of the parties
(2) ANIMUS DONANDI (intent to donate)
(3) DELIVERY of thing donated
(4) FORM as prescribed by law
(5) IMPOVERISHMENT of donors patrimony and
ENRICHMENT on part of donee
Propter Nuptias
Express acceptance
Necessary
Not required
As to minors
future May
include
future
property (same rule as
wills)
PAGE 118
FC 86
UP COLLEGE OF LAW
PROPERTY
Inter vivos
of the donor
Ownership is immediately
transferred. Delivery of Ownership is transferred
possession is allowed after death
after death
As to revocation
Irrevocable may be Revocable
upon
the
revoked only for the exclusive will of the donor
reasons provided in CC
760, 764, 765
As to reduction or suppression
When it is excessive or When it is excessive or
inofficious,
being inofficious, it is reduced
preferred, it is reduced first, or even suppressed
only after the donations
mortis causa had been
reduced or exhausted
Note:
(a) NATURE of the act, whether its one of
disposition or of execution, is CONTROLLING
to determine whether the donation is mortis
causa or inter vivos.
(b) What is important is the TIME of TRANSFER
of ownership even if transfer of property
donated may be subject to a condition or a
term.
(c) Whether the donation is inter vivos or mortis
causa depends on whether the donor
intended to transfer ownership over the
properties upon the execution of the deed.
(Gestopa v. CA; Austria-Magat v. CA)
As to cause or consideration
(1) Simple - made out of pure liberality or because of
the merits of the donee
(2) Remuneratory - made for services already
rendered to the donor
(3) Onerous - imposes a BURDEN inferior in value to
property donated
(a) Improper - burden EQUAL in value to property
donated
As to effectivity
Effective
during
the Effective after the death
lifetime of the donor
of the donor
As to acceptance
Acceptance must be
made during the lifetime
Mortis causa
Inter vivos
Acceptance must be
made after the death of
PAGE 119
UP COLLEGE OF LAW
PROPERTY
As to effectivity or extinguishment
(1) Pure donation is without conditions or periods
(2) Conditional donation is subject to suspensive or
resolutory conditions
(3) With a term
FORMALITIES REQUIRED
Perfection
Acceptance
(1) Donation is perfected upon the donors learning
of the acceptance
(2) Acceptance may be made during the lifetime of
both donor and donee
Who May Accept
Donee: must accept personally or through an
authorized person with special power for the purpose
(NCC 745)
Time Of Acceptance
During lifetime of donor and donee
PAGE 120
UP COLLEGE OF LAW
PROPERTY
NCC 1027:
(a) 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
(b) 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
(c) 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
(d) Any physician, surgeon, nurse, health officer or
druggist who took care of the testator during his
last illness
(e) Individuals, associations and corporations not
permitted by law to inherit
In general
(1) Donee may demand actual delivery of thing
donated
(2) Donee is SUBROGATED to rights of donor in the
property donated
(3) Donor NOT obliged to warrant things donated
EXCEPT in onerous donations in which case
donor is liable for eviction up to extent of burden
(ART. 754)
(4) Donor is liable for EVICTION or HIDDEN
DEFECTS in case of BF on his part (ART. 754)
(5) In donation propter nuptias, donor must
RELEASE property donated from mortgages and
other encumbrances UNLESS the contrary has
been stipulated
(6) Donations to several donees jointly NO right of
accretion EXCEPT:
(a) Donor provides otherwise
PAGE 121
UP COLLEGE OF LAW
PROPERTY
one
who
can
Excessive/Inofficious Donations
A donation in which a person gives or receives more
than what he may give or receive by will (NCC 752)
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 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;
(3) If the donor subsequently adopt a minor child
Inofficious Donations
(1) Shall be reduced with regard to the excess;
(2) But this reduction shall not prevent the donations
from taking effect during the life of the donor, nor
shall it bar the donee from appropriating the
fruits
(3) 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
(4) 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.
Reduction
(1) Inofficiousness
A donation in which a person gives or receives
more than what he may give or receive by will is
inofficious (NCC 752)
(2) Subsequent birth, reappearance of child or
adoption of minor by donor
Revocation
Reduction
Total,
whether
the
Made insofar as the
legitime is impaired or
legitime is prejudiced
not
Benefits the donor
Effects:
(1) Donation is VALID if not exceeding the free part
computed as of the birth, adoption or
reappearance of the child
(2) Donee must return the property or its value at the
time of the donation
(3) Fruits to be returned from the filing of the action
PAGE 122
UP COLLEGE OF LAW
PROPERTY
PAGE 123
UP COLLEGE OF LAW
PROPERTY
Limitation:
(1) He reserves in full ownership or in usufruct,
sufficient means for his support and for all
relatives who are at the time of the acceptance of
the donation are, by law, entitled to be supported
Effect of non-reservation: reduction of the
donation
(2) He reserves sufficient property at the time of the
donation for the full settlement of his debts
Effect of non-reservation: considered to be a
donation in fraud of creditors, and donee may be
liable for damages
PAGE 124
UP COLLEGE OF LAW
PROPERTY
If the donation so states, the donee may be obliged to Exception: when contrary intention appears
pay the debts previously contracted by the donor and
in no case shall he be responsible for the debts
exceeding the value of the thing donated (Article 758)
What may be reserved by the donor
Right to dispose of some of the things donated, or of If the donor dies without exercising this right
some amount which shall be a charge thereon
Reversion
The property donated may be restored or returned to
(1) Donor or his estate; or
(2) Another person
Revocation/Reduction
Time of Action
Transmissibility
Effect
Liability (Fruits)
Property
returned, Fruits
received
after
alienations
and having failed to fulfill
mortgages void subject to condition returned
rights of third persons in
good faith
Ingratitude
Within 1 year after Generally not transmitted Property returned, but Fruits received from the
knowledge of the fact
to heirs of donor/ donee alienations
and filing of the complaint
mortgages
effected returned
before the notation of the
complaint for revocation
in the registry of property
subsist
Failure to reserve sufficient means for support
At any time, by the donor
or relatives entitled to Not transmissible
support
PAGE 125
UP COLLEGE OF LAW
Time of Action
PROPERTY
Transmissibility
Effect
Liability (Fruits)
Inofficiousness for being in excess of what the donor can give by will
Within 5 years from the Transmitted to donors Donation takes effect on Donee entitled
death of the donor
heirs
the lifetime of donor.
Reduction only upon his
death with regard to the
excess
Fraud against creditors
Rescission within 4 years Transmitted to creditors Returned for the benefit Fruits
returned/
if
from the perfection of heirs or successors-in- of the creditor who impossible,
indemnify
donation/ knowledge of interest
brought the action
creditor for damages
the donation
PAGE 126
UP COLLEGE OF LAW
PROPERTY
TRADITION
CONCEPT
Prescription
DEFINITION
By prescription, one acquires ownership and other
real rights through the lapse of time in the manner
and under the conditions laid down by law.
REQUISITES
PURPOSE
RATIONALE
It is purely statutory in origin. It is founded on
grounds of public policy which requires for the peace
of society, that juridical relations susceptible of
doubt and which may give rise to disputes, be fixed
and established after the lapse of a determinate time
so that ownership and other rights may be certain for
those who have claim in them
KINDS
KINDS OF PRESCRIPTION
(1) Acquisitive prescription
(2) Extinctive prescription
ACQUISITIVE PRESCRIPTION
PAGE 127
UP COLLEGE OF LAW
PROPERTY
NO PRESCRIPTION APPLICABLE
BY OFFENDER
Note:
(1) For extraordinary prescription, only first 4 are
required
(2) Possession has to be in the concept of an owner,
public, peaceful, and uninterrupted (UPPO)
EXTINCTIVE PRESCRIPTION
Extinctive Prescription
Applicable to ownership
and other real rights
VOID CONTRACTS
No prescription shall run in favor of a co-owner or coheir against his co-owners or co-heirs so long as he
expressly or impliedly recognizes the co-ownership
(NCC 494)
PROPERTY OF PUBLIC DOMINION
Should be affirmatively
pleaded and proved to
bar the action or claim of
the adverse party
Laches
PAGE 128
UP COLLEGE OF LAW
PROPERTY
Prescription
Laches
relation of the parties
Statutory
NOT statutory
Applies at law
Applies at equity
OTHER ACTIONS
PAGE 129
UP COLLEGE OF LAW
PROPERTY
PAGE 130
UP COLLEGE OF LAW
OBLIGATIONS
PAGE 131
UP COLLEGE OF LAW
OBLIGATIONS
Definition
ARTICLE 1156
Elements of an Obligation
ELEMENTS OF AN OBLIGATION [De Leon, 2003]
(1) ACTIVE SUBJECT (Obligee/Creditor): The person
who has the right or power to demand the
prestation.
(2) PASSIVE SUBJECT (Obligor/Debtor): The person
bound to perform the prestation.
(3) PRESTATION (Object): The conduct required to
be observed by the debtor/obligor (to give, to do,
or not to do).
(4) VINCULUM JURIS (Juridical or Legal Tie; Efficient
Cause): That which binds or connects the parties
to the obligation.
NATURAL OBLIGATIONS
ARTICLE 1423
Art. 1423. Obligations are civil or natural. Civil
obligations give a right of action to compel their
performance. Natural obligations, not being based
on positive law but on equity and natural law, do not
grant a right of action to enforce their performance,
but after voluntary fulfillment by the obligor, they
authorize the retention of what has been delivered or
rendered by reason thereof. Some natural
obligations are set forth in the following articles.
Classification of Obligations
FROM THE VIEWPOINT OF SANCTION:
(1) Civil obligation (or perfect obligation) the
sanction is judicial process
(2) Natural obligation the sanction is the law
(3) Moral obligation (or imperfect obligation) the
sanction is conscience or morality
ARTICLE 1424
ARTICLE 1425
PAGE 132
UP COLLEGE OF LAW
OBLIGATIONS
ARTICLE 2143
ARTICLE 1426
Negotiorum Gestio
ARTICLE 2144
Art. 2144. Whoever voluntarily takes charge of the
agency or management of the business or property
of another, without any power from the latter, is
obliged to continue the same until the termination of
the affair and its incidents, or to require the person
concerned to substitute him, if the owner is in a
position to do so. This juridical relation does not arise
in either of these instances:
ARTICLE 1427
ARTICLE 1428
ARTICLE 1429
ARTICLE 1430
ARTICLE 2147
PAGE 133
UP COLLEGE OF LAW
OBLIGATIONS
ARTICLE 2148
ARTICLE 2153
ARTICLE 2149
ARTICLE 2155
ARTICLE 2150
ARTICLE 2156
ARTICLE 2157
ARTICLE 2151
ARTICLE 2158
Art. 2151. Even though the owner did not derive any
benefit and there has been no imminent and
manifest danger to the property or business, the
owner is liable as under the first paragraph of the
preceding article, provided:
(1) The officious manager has acted in good faith,
and
(2) The property or business is intact, ready to be
returned to the owner.
ARTICLE 2152
PAGE 134
UP COLLEGE OF LAW
OBLIGATIONS
ARTICLE 2160
ARTICLE 2167
ARTICLE 2161
ARTICLE 2168
ARTICLE 2163
ARTICLE 2170
OTHER QUASI-CONTRACTS
ARTICLE 2164
ARTICLE 2171
ARTICLE 2165
ARTICLE 2173
ARTICLE 2166
PAGE 135
UP COLLEGE OF LAW
OBLIGATIONS
ARTICLE 2174
ARTICLE 2175
QUASI-DELICTS
ARTICLE 2176
ARTICLE 2177
ARTICLE 2181
ARTICLE 2178
ARTICLE 2182
ARTICLE 2179
ARTICLE 2183
ARTICLE 2180
ARTICLE 2184
UP COLLEGE OF LAW
OBLIGATIONS
ARTICLE 2192
ARTICLE 2187
ARTICLE 2194
ARTICLE 2188
ARTICLE 2189
Specific Thing
Particularly
designated or
physically
segregated from
all other of the
same class;
identified by
individuality.
ARTICLE 2190
Cannot be
substituted.
ARTICLE 2191
PAGE 137
Generic Thing
Object is
designated only
by its class/
genus/ species.
Debtor can give
anything of the
same class as
long as it is of
the same kind.
Can be
substituted by
any of the same
class and same
kind.
Limited Generic
Thing
When the
generic objects
are confined to
a particular
class.
UP COLLEGE OF LAW
OBLIGATIONS
BREACH OF OBLIGATIONS
COMPLETE FAILURE TO PERFORM
OBLIGATION TO DO OR NOT TO DO
Duties of the Debtor
Substantial Breach
To do
(1) To do it
(1) To
compel
(2) To shoulder the
performance
cost of having (2) To recover damages
someone else do it
where
personal
(3) To undo what has
qualifications of the
been poorly done
debtor are involved
(4) To
pay
for
damages in case
of breach
Not to do
(1) Not to do what should (1) To ask to undo what
not be done
should not be done
(2) To shoulder the cost (2) To recover damages,
of undoing
what
where it would be
should not have been
physically or legally
done
impossible to undo
Reciprocal Obligations
General Rule:
No demand, no delay.
General Rule:
Delay occurs from the
moment
one
party
fulfills his undertaking,
while the other does not
comply or is not ready to
comply in a proper
manner with what is
incumbent upon him.
PAGE 138
UP COLLEGE OF LAW
OBLIGATIONS
Unilateral Obligations
Reciprocal Obligations
performs
his
undertaking [Art. 1169,
par. 2].
Mora Solvendi
the debtor within the
period agreed upon.
(3) Demand, judicial or
extra-judicial, by the
creditor.
Mora Accipiendi
prestation.
(3) Creditor refuses the
performance without
just cause.
Effects
(1) The debtor is liable for (1) The responsibility of
damages.
the debtor is reduced
(2) The debtor is liable
to fraud and gross
even if the loss is due
negligence.
to fortuitous events.
(2) The debtor is
(3) For determinate
exempted from risk of
objects, the debtor
loss of the thing
shall bear the risk of
which is borne by the
loss.
creditor.
(3) The expenses
incurred by the
debtor for the
preservation of the
thing after the mora
shall be chargeable
to the creditor.
(4) If the obligation bears
interest, the debtor
does not have to pay
from the time of
delay.
(5) The creditor is liable
for damages.
(6) The debtor may
relieve himself of the
obligation by
consigning the thing.
Exceptions:
ARTICLE 1169
Art. 1169. par 2-3:
xxx
However, the demand by the creditor shall not be
necessary in order that delay may exist:
(1) When the obligation or the law expressly so
declares; or
(2) When from the nature and the circumstances of
the obligation it appears that the designation of
the time when the thing is to be delivered or the
service is to be rendered was a controlling motive
for the establishment of the contract; (time is of
the essence) or
(3) When demand would be useless, as when the
obligor has rendered it beyond his power to
perform.
In reciprocal obligations, neither party incurs in delay
if the other does not comply or is not ready to comply
in a proper manner with what is incumbent upon
him. From the moment one of the parties fulfills his
obligation, delay by the other begins.
(1) Mora solvendi- Delay on the part of the debtor to
fulfill his obligation either to give (ex re) or to do
(ex persona)
No Mora Solvendi in:
(a) Negative obligations because delay is
impossible [De Leon, 2003]
(b) Natural obligations [Tolentino, 1987]
(2) Mora accipiendi- Delay on the part of the creditor
to accept the performance of the obligation.
(3) Compensatio morae- Delay of both parties in
reciprocal obligations. Effect: As if there is no
default.
Mora Solvendi
Mora Accipiendi
Requisites
(1) Obligation must be
(1) Debtor offers
liquidated, due and
performance.
demandable.
(2) Offer must be in
(2) Non-performance by
compliance with the
PAGE 139
UP COLLEGE OF LAW
NEGLIGENCE
OBLIGATION
OBLIGATIONS
ARTICLE 2000
ARTICLE 2001
Exceptions:
ARTICLE 1733
Art. 1733. Common carriers, from the nature of their
business and for reasons of public policy, are bound
to observe extraordinary diligence in the vigilance
over the goods and for the safety of the passengers
transported by them, according to all the
circumstances of each case.
ARTICLE 1998
Bad Faith
Debtor is liable for all
damages, which can be
reasonably attributed to
the non-performance of
the obligation. Any waiver
or renunciation made in
anticipation
of
such
liability is null and void.
Good Faith
Debtor is liable only for
the natural and probable
consequences of the
breach of obligation and
fortuitous events.
Culpa Contractual
Culpa Aquiliana
Negligence is merely
incidental in the
performance of an
obligation.
There is always a preexisting contractual
relation.
The source of obligation
of defendant to pay
damages is the breach or
non-fulfillment of the
ARTICLE 1999
PAGE 140
Negligence is
substantive and
independent.
There may or may not be
a pre-existing
contractual obligation.
The source of obligation
is the defendants
negligence itself.
UP COLLEGE OF LAW
Culpa Contractual
OBLIGATIONS
Culpa Aquiliana
contract.
Proof of the existence of The negligence of the
the contract and of its
defendant must be
breach or non-fulfillment proved.
is sufficient prima facie
to warrant recovery.
Proof of diligence in the
Proof of diligence in the
selection and supervision selection and
of the employees is NOT
supervision of the
available as defense.
employee is a defense.
OF
OBLIGATION
SPECIFIC PERFORMANCE
PAGE 141
UP COLLEGE OF LAW
OBLIGATIONS
ACCION SUBROGATORIA
Right of creditor to exercise all of the rights and
bring all of the actions which his debtor may have
against third persons; novation by change of debtor
[Art. 1291, par. 3].
Requisites:
(1) Debtor to whom the right of action properly
pertains must be indebted to the creditor
(2) The debt is due and demandable
(3) The creditor must be prejudiced by the failure of
the debtor to collect his own debt from third
persons, either through malice or negligence
(4) The debtors assets are insufficient (debtor is
insolvent)
(5) The right of action is not purely personal to the
debtor
ACCION PAULIANA
Rescission, which involves the right of the creditor to
attack or impugn by means of a rescissory action any
act of the debtor which is in fraud and to the
prejudice of his rights as creditor.
ARTICLE 1893
Accion Pauliana
Credit must exist before
the fraudulent act
Fraudulent intent is
required if the contract
rescinded is onerous
Prescribes in 4 years
from the discovery of the
fraud
PAGE 142
UP COLLEGE OF LAW
OBLIGATIONS
ARTICLE 1180
Exclusively upon
the Creditors
Will
Pure Obligation
Its effectivity or extinguishment does not depend
upon the fulfillment or non-fulfillment of a condition
or upon the expiration of a term or period and
characterized by the quality of its being
IMMEDIATELY DEMANDABLE.
Condition and
obligation are
valid.
Exclusively upon
the Debtors Will
in case of a
Suspensive
Condition
[Art. 1182]
Condition and
obligation are
void because to
allow such
condition would
be equivalent to
sanctioning
obligations
which are
illusory. It also
constitutes a
direct
contravention of
the principle of
mutuality of
contracts. There
is nothing to
demand until
the debtor
wishes to.
Exclusively upon
the Debtors Will
in case of a
Resolutory
Condition
[Art. 1179, par.
2]
Condition and
obligation are
valid because in
such situation,
the position of
the debtor is
exactly the
same as the
position of the
creditor when
the condition is
suspensive. It
does not render
the obligation
illusory.
PAGE 143
UP COLLEGE OF LAW
OBLIGATIONS
To Give
To Do/Not To Do
In obligations to do or
not to do, the court shall
determine the retroactive
effect of the condition
that has been complied
with
[Art. 1187, par. 2].
The power of the court
includes the
determination of whether
or not there will be any
retroactive effect. This
rule shall likewise apply
in obligations with a
resolutory condition [Art.
1190 par. 3].
Suspensive Condition
Before Fulfillment
The demandability and
acquisition or effectivity of
the rights arising from the
obligation is suspended.
Anything paid by mistake
during such time may be
recovered.
After Fulfillment
The obligation arises or
becomes effective.
The obligor can be
compelled to comply
with what is incumbent
upon him.
Before Fulfillment
Preservation of creditors
rights (Art. 1188, par. 1)
also applies to obligations
with a resolutory
condition.
After Fulfillment
Whatever may have been
paid or delivered by one
or both of the parties
upon the constitution of
the obligation shall have
to be returned upon the
fulfillment of the
condition. There is no
return to the status quo.
However, when the
condition is not fulfilled,
rights are consolidated
and they become
absolute in character.
UP COLLEGE OF LAW
OBLIGATIONS
the
obligation
OR
bringing an action for
specific
performance,
with damages in either
case.
Improvement
mprovement
at
the Improvement by the
debtors expense, the things nature or by time
debtor shall ONLY have shall inure to the benefit
usufructuary rights.
of the creditor.
ARTICLE 1189
ARTICLE 1190
Loss
is Obligation is converted
into one of indemnity for
damages.
Deterioration
Impairment to be borne Creditor may choose
by the creditor.
between bringing an
action for rescission of
Obligation
extinguished.
ARTICLE 1180
PAGE 145
UP COLLEGE OF LAW
OBLIGATIONS
Condition
Fact or event which is
future and uncertain
RESOLUTORY PERIOD
1197)
Art. 1197: As a general rule, the court is not
authorized to fix a period for the parties [De Leon,
2003].
SUSPENSIVE PERIOD
PAGE 146
UP COLLEGE OF LAW
COMPLIANCE
ARRIVED.
OBLIGATIONS
THEREWITH,
AND
SUCH
PERIOD
HAS
ALTERNATIVE OR FACULTATIVE
DIFFERENCE BETWEEN ALTERNATIVE AND FACULTATIVE
OBLIGATIONS
Alternative Obligations
Several objects are due.
May be complied with by
delivery of one of the
objects or by performance
of one of the prestations
which are alternatively
due.
Choice may pertain to
debtor, creditor, or third
person.
Facultative Obligations
Only one object is due.
May be complied with by
the delivery of another
object
or
by
the
performance of another
prestation in substitution
of that which is due.
Choice pertains only to
the debtor.
Loss/impossibility of all
object/prestation due to
fortuitous event shall
extinguish the obligation.
The loss/impossibility of
one of the things does not
extinguish the obligation.
Culpable loss of any of
the objects alternatively
due before the choice is
made may give rise to
liability on the part of the
debtor.
Loss/impossibility of the
object/prestation due to
fortuitous
event
is
sufficient to extinguish
the obligation.
Alternative Obligations
Several prestations are due but the performance of
one is sufficient [De Leon, 2003].
Right of Choice:
Art. 1200: Belongs to the debtor, UNLESS:
(1) when it is expressly granted to the creditor
(2) when it is expressly granted to a third person
Debtors Fault
All Lost
PAGE 147
UP COLLEGE OF LAW
OBLIGATIONS
Debtors Fault
All Lost
Debtor is released from Creditor may claim the
the obligation.
price/value of any of
them with indemnity for
damages.
Some
Debtor to deliver that Creditor may claim any
which he shall choose of
those
subsisting
from
among
the without a right to
remainder.
damages OR price/value
of the thing lost with
right to damages.
One Remains
Creditor may claim the Creditor may claim the
remaining thing without remaining thing without
a right to damages OR a right to damages OR
the price/value of the the price/value of the
thing lost with right to thing lost with right to
damages.
damages.
PAGE 148
UP COLLEGE OF LAW
OBLIGATIONS
SOLIDARY OBLIGATION
An obligation where there is concurrence of several
creditors, or of several debtors, or of several creditors
and several debtors, by virtue of which, each of the
creditors has the right to demand, and each of the
debtors is bound to render, entire compliance with the
prestation which constitutes the object of the
obligation (obligacion solidaria).
1214, 1215)
ARTICLE 1214
Art. 1214. 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.
ARTICLE 1215
Joint Indivisible
Obligations
In case of breach where
one of the joint debtors
fails to comply with his
undertaking, the
obligation can no longer
be fulfilled or performed.
Thus, the action must be
converted into one for
indemnity for damages.
1217, 1222]
PAGE 149
UP COLLEGE OF LAW
OBLIGATIONS
ARTICLE 1216
ARTICLE 1217
A creditors right to
proceed against the
surety exists
independently of his right
to proceed against the
principal
ARTICLE 1222
Payment by a Debtor
Full payment made by
one of the solidary
debtors extinguishes the
obligation [Art. 1217].
PAGE 150
UP COLLEGE OF LAW
OBLIGATIONS
ARTICLE 1212
Indivisible Obligations
Ones which cannot be validly performed in parts
[Tolentino, 1987].
ARTICLE 1219
Effect
Creditor cannot be compelled to receive partially the
prestation in which the obligation consists; neither
may the debtor be required to make the partial
payment [Art. 1248], UNLESS:
(1) The obligation expressly stipulates the contrary.
(2) The different prestations constituting the objects
of the obligation are subject to different terms
and conditions.
(3) The obligation is in part liquidated and in part
unliquidated.
Indivisibility
Solidarity
It refers to the prestation It refers to the legal tie
which
constitutes
the or
vinculum,
and
object of the obligation.
consequently, to the
subjects or parties of
the obligation.
Plurality of subjects is not Plurality of subjects is
required.
indispensable.
In
case
of
breach, When there is liability
obligation is converted into on the part of the
indemnity for damages debtors because of the
because the indivisibility of breach, the solidarity
the
obligation
is among the debtors
terminated.
remains.
PAGE 151
UP COLLEGE OF LAW
OBLIGATIONS
Chartacteristics of Penalty
(1) The penalty shall substitute the indemnity for
damages and payment of interest in case of noncompliance [Art. 1226], UNLESS:
(a) There is a stipulation to the contrary
(b) The obligor refuses to pay the penalty
(c) The obligor is guilty of fraud
ARTICLE 1228
ARTICLE 1229
Art. 1230. 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.
Penal Clause: An accessory undertaking to assume
greater liability in case of breach [De Leon, 2003]. It
is attached to an obligation in order to ensure
performance. The enforcement of the penalty can be
demanded by the creditor only when the nonperformance is due to the fault or fraud of the
debtor.
Purposes of Penalty
(1) Funcion coercitiva de garantia - to insure the
performance of the obligation.
(2) Funcion liquidatoria - to liquidate the amount of
damages to be awarded to the injured party in
case of breach of the principal obligation
(compensatory).
(3) Function estrictamente penal - to punish the
obligor in case of breach of the principal
obligation (punitive).
PAGE 152
UP COLLEGE OF LAW
OBLIGATIONS
Extinguishment of
Obligations
ARTICLE 1237
Rules on Application
(1) Preferential right of debtor - debtor has the right
to select which of his debts he is paying.
(2) The debtor makes the designation at the time he
makes the payment.
(3) If not, the creditor makes the application, by so
stating in the receipt that he issues, unless there
is cause for invalidating the contract.
(4) If neither the creditor nor debtor exercises the
right to apply, or if the application is not valid, the
application is made by operation of law.
(5) If debt produces interest, the payment is not to be
applied to the principal unless the interests are
covered.
(6) When no application can be inferred from the
circumstances of payment, it is applied: (a) to the
most onerous debt of the debtor; or (b) if debts
due are of the same nature and burden, to all the
debts in proportion
(7) Rules of application of payment may not be
invoked by a surety or solidary guarantor.
1261]
1256-
PAGE 153
UP COLLEGE OF LAW
OBLIGATIONS
Payment of debt
designated as to
corresponding
amount
PAGE 154
Effects
Extinguishment
of debt as an
equivalent of the
performance of
the obligation
If accepted by
the creditor or
declared
properly made
by the Court:
(1) Debtor is
released in
same manner
as if he had
performed the
obligation at
the time of
consignation
(2) Accrual of
interest is
suspended
UP COLLEGE OF LAW
Application of
Payment
OBLIGATIONS
Dation
Effects of Loss
Obligation to Deliver a
Specific Thing
Extinguishment of the
obligation if the thing was
destroyed without fault of
the debtor and before he
has incurred delay.
Tender and
Consignation
from the
moment of
consignation.
(3) Deterioration
or loss of the
thing or
amount
consigned,
occurring
without the
fault of
debtor, must
be borne by
creditor from
the moment
of deposit
Any increment
or increase in
the value of the
thing
after
consignation
inures to the
benefit of the
creditor.
Obligation to Deliver a
Generic Thing
Loss of a generic thing
does not extinguish an
obligation, EXCEPT in
case of delimited generic
things, where the kind or
class is limited itself, and
the whole class perishes.
In Reciprocal Obligations
Extinguishment of the obligation due to loss of the
thing or impossibility of performance affects both the
creditor and debtor; the entire juridical relation is
extinguished.
Partial loss
Art. 1264: Partial loss due to a fortuitous event does
not extinguish the obligation; thing due shall be
delivered in its present condition, without any liability
on the part of the debtor, UNLESS the obligation is
extinguished when the part lost was of such extent
as to make the thing useless.
PAGE 155
UP COLLEGE OF LAW
OBLIGATIONS
Effect
Art. 1273: Renunciation of the principal debt shall
extinguish the accessory obligations, but remission
of the latter leaves the principal obligation in force.
Partial Impossibility
(1) Courts shall determine whether it is so important
as to extinguish the obligation.
(2) If debtor has performed part of the obligation
when impossibility occurred, creditor must pay
the part done as long as he benefits from it.
(3) If debtor received full payment from creditor, he
must return excess amount corresponding to part
which was impossible to perform.
Requisites:
(1) Debt must be existing and demandable.
(2) Renunciation must be gratuitous; without any
consideration.
(3) Debtor must accept the remission.
COMPENSATION
Compensation - Offsetting of two obligations which
are reciprocally extinguished if they are of the same
PAGE 156
UP COLLEGE OF LAW
OBLIGATIONS
Compensation
There must always be
two obligations.
Confusion
Involves only one
obligation.
ARTICLE 1288
Compensation:
Requisites
(1) Each obligor is bound
principally, and at the
same time a principal
creditor of the other
(2) Both debts must
consist in a sum of
money, or if the things
due are FUNGIBLE, of
the same kind &
quality
(3) Both debts are due
(4) Debts are liquidated
and demandable
(5) There must be no
retention or
controversy over either
of the debts,
commenced by third
persons and
communicated in due
time to the debtor
(6) Compensation is not
prohibited by law
Effects
(1) Effects rise from the
moment all the
requisites concur.
(2) Debtor claiming its
benefits must prove
compensation; once
proven, effects
retroact from the
moment when the
requisites concurred.
(3) Both debts are
extinguished to the
concurrent amount,
even though the
creditors and debtors
are not aware of the
compensation.
(4) Accessory obligations
are also extinguished.
ARTICLE 1290
KINDS
(1) LEGAL COMPENSATION [ARTS. 1286-1290]
ARTICLE 1283
(5) FACULTATIVE
When it can be claimed by one of the parties who,
however, has the right to object to it.
ARTICLE 1287
PAGE 157
UP COLLEGE OF LAW
OBLIGATIONS
Effects
In General
If Original
Obligation is Void
Old
Novation is void if
obligation is the original
extinguished obligation was
and replaced void, except when
by the new
annulment may
one
be claimed only
stipulated.
by the debtor, or
when ratification
validates acts that
are voidable [Art.
1298]
1. Original
obligation is void:
No novation
2. Original
obligation
voidable: Effective
if contract is
ratified before
novation.
If New Obligation
is Void
New obligation is
void, the old
obligation
subsists, unless
the parties
intended that the
former relations
shall be
extinguished in
any event [Art.
1297]
1. New obligation
void: No novation
2. New obligation
voidable:
Novation is
effective
Requisites
(1) A previous valid obligation
(2) Agreement of all the parties to the new obligation
(3) Extinguishment of the old obligation
(4) Validity of the new obligation
Compatible Conditions
(a) Fulfillment
of
both
conditions: new obligation
becomes demandable
(b) Fulfillment of condition
concerning the original
obligation: old obligation
is revived; new obligation
loses force
(c) Fulfillment of condition
concerning
the
new
obligation: no novation;
requisite of a previous
valid
and
effective
obligation lacking
Incompatible
Conditions
(a) Original
obligation
is
extinguished,
while
new
obligation exists
(b) Demandability
shall be subject
to
fulfillment/
nonfulfillment of
the
condition
affecting it
Objective Novation
(1) Change of the subject matter
(2) Change of cause or consideration
PAGE 158
UP COLLEGE OF LAW
OBLIGATIONS
Conventional
subrogation
Debtors consent is
necessary.
Extinguishes an
obligation and gives
rise to a new one.
Subjective Novation
(1) Substitution of the Debtor: Consent of creditor is
an indispensable requirement both in
expromision and delegacion.
Expromision
Initiative for change does
not emanate from the
debtor, and may
even be made without
his knowledge.
Delegacion
Debtor (delegante)
offers or initiates the
change, and the creditor
(delegatorio) accepts a
third person (delegado)
as consenting to the
substitution.
Requisites
(1) Consent of the
Consent of old debtor,
creditor and the new
new debtor, and creditor
debtor
(2) Knowledge or
consent of the old
debtor is not required
Effects
(1) Old
debtor
is (1) Insolvency of the new
released
debtor revives the
(2) Insolvency of the new
obligation of the old
debtor does not
debtor if it was
revive
the
old
anterior and public,
obligation in case the
and known to the old
old debtor did not
debtor.
agree to expromision (2) New debtor can
(3) If with knowledge
demand
and consent of old
reimbursement of the
debtor, new debtor
entire amount he has
can
demand
paid from the original
reimbursement of the
debtor.
He
may
entire amount paid
compel creditor to
and with subrogation
subrogate him to all
of creditors rights.
of his rights.
(4) If without knowledge
of the old debtor, new
debtor can demand
reimbursement only
up to the extent that
the latter has been
benefited
without
subrogation
of
creditors rights.
Defects/vices in the
old obligation are
cured.
Assignment of credit
Debtors consent is not
required.
Refers to the same right
which passes from one
person to another, without
modifying or extinguishing
the obligation.
Defects/vices in the old
obligation are not cured.
PAGE 159
Partial
(1) A creditor, to whom
partial payment
has been made,
may exercise his
right for the
remainder, and
shall be preferred
to the person
subrogated in his
place in virtue of
the partial
payment.
UP COLLEGE OF LAW
Essential Requisites
ARTICLE 1318
CONSENT
(a) The meeting of the minds between the parties on
the subject matter and the cause of the contract.
(b) The manifestation of the meeting of the offer and
the acceptance upon the thing and the cause
which are to constitute the contract.
Requisites of Consent:
(1) It must be manifested by the concurrence of the
offer and acceptance [Arts. 1319-1326].
(2) The contracting parties must possess the
necessary legal capacity [Arts. 1327-1329].
(3) It must be intelligent, free, spontaneous, and real
(not vitiated) [Arts. 1330-1346].
ACCEPTANCE
Requisites:
(a) Unqualified and unconditional, i.e. it must
conform with all the terms of the offer, otherwise
it is a counter-offer (Art. 1319)
(b) Communicated to the offeror and learned by him
(Arts. 1319, 1322). If made through an agent, the
offer is accepted from the time the acceptance is
communicated to such agent.
(c) Express/implied, but is not presumed.
Requisites:
(a) Definite
(b) Intentional
(c) Complete
With consideration
Without consideration
Offeror
cannot Offeror may withdraw by
unilaterally withdraw his communicating
offer.
withdrawal to the offeree
before acceptance.
LEGAL CAPACITY
PAGE 160
UP COLLEGE OF LAW
VICES OF CONSENT
(1) Mistake
Inadvertent and excusable disregard of a
circumstance material to the contract [J.B.L. Reyes].
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 [Art.1331].
(5) Fraud
When through insidious words or machinations of
one of the contracting parties, the other is induced to
enter into a contract which, without them, he would
not have agreed to [Art. 1338].
Mistake of Law
When one or
both parties
arrive at an
erroneous
conclusion on
the
interpretation of
a question of
law or its legal
effects.
ARTICLE 1339
Mutual Mistake
(1) Must be as
to the legal
effect of an
agreement
(2) Must be
mutual
(3) Real
purpose of
the parties
must have
been
frustrated
ARTICLE 1340
(2) Intimidation
When one of the contracting parties is compelled by
a reasonable and well-grounded fear of an imminent
and grave evil upon his person or property, or upon
the person or property of his spouse, descendants or
ascendants, to give his consent [Art. 1335].
ARTICLE 1343
PAGE 161
UP COLLEGE OF LAW
Absolute Simulation
No real transaction is
intended.
Fictitious contract.
Void.
Relative Simulation
Real transaction is hidden.
Disguised contract.
Bound as to hidden
agreement, so long as it
does not prejudice a third
person and is not contrary
to law, morals, good
customs, public order or
public policy.
REQUISITES:
Onerous
Contracts
OBJECT
Renumeratory
Contracts
DEFINITION:
Pure
Beneficence
Mere
liberality of
the
benefactor
[Art.1348]
(c) For things as object of contract, must be in
BUT,
In Fisher v. Robb (1939), if the moral obligation arises
wholly from ethical consideration, it cannot
constitute a sufficient cause to support an onerous
contract, as when the promise is made on the
erroneous belief that one was morally responsible for
the failure of an enterprise (moral obligation).
Cause
Effect
Contrary to law, If
cause
is
unlawful,
morals,
good transaction is VOID.
customs, public policy
PAGE 162
UP COLLEGE OF LAW
Cause
and public order
REAL
Contracts which are perfected not merely by consent
but by delivery, actual or constructive, of the object of
the obligation [Art.1316]. Example: contract of
pledge, commodatum, mutuum.
Effect
If parts of a contract are
illegal but the rest are
supported by lawful cause,
claimant of such has the
burden of showing proof;
otherwise, the whole contract
is VOID.
FORMAL OR SOLEMN
Contracts for which a special form is necessary for its
perfection [Art. 1356].
ARTICLE 749
Liguez v. CA (1957):
In making the donation in question, Lopez was not
moved exclusively by the desire to benefit Liguez, but
also to secure her cohabiting with him, so that he
could gratify his sexual impulses. The donation was
an onerous transaction and clearly predicated upon
an illicit causa.
Kinds of Contracts
ARTICLE 1773
CONSENSUAL
Contracts which are perfected by mere consent of
the parties regarding the subject matter and the
cause of the contract [Art.1315].
PAGE 163
UP COLLEGE OF LAW
Formal/Solemn Contract
CHATTEL MORTGAGE
ARTICLE 2140
Formality
STATUTORY BASIS
ARTICLE 1356
Art. 1356. 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.
PAGE 164
UP COLLEGE OF LAW
Defective Contracts
ARTICLE 1357
ARTICLE 1382
PAGE 165
UP COLLEGE OF LAW
Definition
(1) Process designated to render inefficacious a
contract validly entered into and normally
binding, by reason of external conditions, causing
an economic prejudice to a party or to his
creditors (Scaevola).
(2) Remedy granted by law to the contracting parties
and to third persons in order to secure reparation
for damages caused them by a contract, even if
the contract is valid, by means of the restoration
of things to their condition prior to the
celebration of said contract (Manresa)
(3) Relief to protect one of the parties or a third
person from all injury and damages which the
contract may cause, to protect some preferential
right [Aquino v. Taedo (1919)].
DIFFERENCE FROM RESCISSION
ART. 1191
ARTICLE 1191
VOIDABLE CONTRACTS
ARTICLE 1390
Art. 1390. 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.
(RESOLUTION) UNDER
ARTICLE 1391
PAGE 166
UP COLLEGE OF LAW
VOID CONTRACTS
ARTICLE 1409
Art. 1409. The following contracts are inexistent and
void from the beginning:
Those whose cause, object or purpose is contrary to
law, morals, good customs, public order or public
policy;
Those which are absolutely simulated or fictitious;
Those whose cause or object did not exist at the time
of the transaction;
Those whose object is outside the commerce of men;
Those which contemplate an impossible service;
Those where the intention of the parties relative to
the principal object of the contract cannot be
ascertained;
Those expressly prohibited or declared void by law.
These contracts cannot be ratified. Neither can the
right to set up the defense of illegality be waived.
PAGE 167
UP COLLEGE OF LAW
ARTICLE 1346
Rescissible
Damage to a party or to a third
person.
Voidable
Unenforceable
Void
Defect
Vitiation
of Without or in excess of Absolute lack of essential
consent
authority, or doesnt requisite in fact or in law.
comply with Statute of
Fraud, or both parties are
incapacitated.
Effect
Valid
until Cannot be enforced by Does not produce any
annulled.
court action.
effect.
Grounds
1390
1403
1409
Necessity of Damage
Not necessary.
Ratification
May be ratified.
Cant be ratified.
Prescription
Imprescriptible.
Assailability by third persons
Assailable only by a party.
Assailable by a party or by a
third party who is damaged.
PAGE 168
Effects of Contracts
STATUTORY BASIS
ARTICLE 1311
Art. 1311. 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.
If a contract should contain some stipulation in favor
of a third person, he may demand its fulfillment
provided he communicated his acceptance to the
obligor before its revocation. A mere incidental
benefit or interest of a person is not sufficient. The
contracting parties must have clearly and
deliberately conferred a favor upon a third person.
GENERAL RULE: Contracts are generally effective
only between the parties, their assigns and their
heirs (principle of relativity).
EXCEPTIONS
(a) Obligations arising from the contract are not
transmissible by nature, stipulation or law
[Art.1311].
(b) Where there is a stipulation pour autrui.
STIPULATION POUR AUTRUI (definition):
stipulation in favor of a third person conferring
clear and deliberate favor which is merely art of
the contract entered into by parties, neither of
whom acted as agent of third person.
(c) Third person induces another to violate his
contract (Art. 1314).
(d) Where third persons may be adversely affected by
a contract where they did not participate [see
Arts. 1312, 2150, 2151].
(e) Where law authorizes creditor to sue on a
contract entered into by his debtor [accion
directa, Art. 1313]
PAGE 169
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SALES
PAGE 170
UP COLLEGE OF LAW
SALES
Introduction
ART.1458 [VILLANUEVA]:
Sale
Donation
Onerous
Perfected
consent
PAGE 171
Gratuitous
by
mere
UP COLLEGE OF LAW
SALES
BARTER
Sale
Consideration is price in
money or its equivalent
Barter
Consideration
another thing
is
Sale
Goods
are
manufactured
or
procured in the ordinary
course of business
For the general market,
whether on hand or not
Conditional Contract of
Sale
Sale
is
already
perfected
A subsequent buyer is
presumed to be a buyer
in bad faith
The fact that the object were made by the seller only
when customers placed their orders, does not alter
the nature of the contract of sale, for it only accepted
such orders as called for the employment of such
materials as it ordinarily manufactured or was in a
position habitually to manufacture such. [Celestino
Co & Co vs. Collector, 1956]
DACION EN PAGO
No pre-existing debt
Creates an obligation
Contract to sell
Sale
Ownership is only
transferred upon full
payment of price
Full payment is a
positive
suspensive
condition, hence nonpayment would not
give rise to the
obligation to transfer
ownership
Dacion en pago
Pre-existing debt
Extinguishes
the
obligation (mode of
payment)
Price is value of the
thing given
PAGE 172
UP COLLEGE OF LAW
SALES
(5) Lawyers
Cannot acquire or purchase property or rights in
litigation in which they take part by virtue of their
profession
Rationale: Lawyers may have undue influence
over client; greed may get the better of the
sentiments of loyalty and disinterestedness.
[Valencia v Cabanting, 1991]
Prohibition is definite and permanent and cannot
be cured by ratification. [Rubias v Batiller, 1973]
EFFECTS OF INCAPACITY
(1) Absolute Incapacity
(a) If
both
parties
are
incapacitated:
UNENFORCABLE [Art. 1403 (3)]
(b) If only 1 party is incapacitated: VOIDABLE
(c) If necessaries are sold and delivered to an
incapacitated person: pay a reasonable price
therefor. [Art 1489, CC]
Necessaries those which are indispensable for
sustenance,
dwelling,
clothing,
medical
attendance, education and transportation. [Art
194, Family Code]
PAGE 173
UP COLLEGE OF LAW
SALES
(b) Church
(c) Narcotics or dangerous drugs except upon
prescription (RA 6425, the dangerous drugs
act of 1972)
(2) When right is not intransmissible [Art 1347, CC]
Sale of future inheritance is void. [Art. 1347, CC]
The rights to succession are transmitted from the
moment of the death of the decedent [Art. 777, CC].
Thus, one cannot sell or promise to sell what he
expects to inherit from a living person. [Rivero v.
Serrano, 1950]
Subject Matter
ARTS. 1459-1465
(1) Licit
(2) Existing, Future, Contingent
(3) Determinate or determinable
MUST BE LICIT [ART. 1459]
PAGE 174
Emptio Spei
Valid
Contract is dependent
upon the existence of
the thing
(a) If the thing does not
come into existence:
contract
is
considered as not
made and there is no
obligation to pay the
price
Void
Parties intend the
contract to exist at all
events
(a) Buyer will have to
pay the price even
if the thing does
not actually come
into existence
UP COLLEGE OF LAW
SALES
Emptio Spei
Examples:
(a) things acquired under legal or conventional
right of redemption; or
(b) subject to reserva troncal,
DETERMINATE OR DETERMINABLE
PARTICULAR KINDS
(1) Future Goods
Sale of future goods or those goods which are to
be manufactured, raised, or acquired by seller
after the perfection of the sale is valid (Art 1462,
CC). Future goods are those capable of future
existence.
PAGE 175
UP COLLEGE OF LAW
SALES
Price
MEANING OF PRICE ARTS. 1469-1474
Price signifies 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 buyer and agreed to by him [Inchausti v.
Cromwell, 1911]
Exceptions:
(1) It may indicate a defect in consent such as fraud,
mistake, or undue influence
(2) It may indicate that the contract was in reality a
donation or some other act or contract
(3) Inadequacy would make the contract of sale
rescissible where a contract was entered into by
the guardian of a ward or a representative of an
absentee, without the courts approval, and the
PAGE 176
UP COLLEGE OF LAW
SALES
1482
Bilateral
PAGE 177
Option Contract
Unilateral: gives a right
to buy or to sell, but
imposes no obligation
UP COLLEGE OF LAW
Sale
Sale of property
SALES
Option Contract
Option Contract
buy or sell
As to enforceability
If the right to the first offer is embodied in the
contract, it should be executed according to the
terms stipulated. The right should be enforced
according to the law on contracts and not on the
panoramic and indefinite rule on human relations.
This juridical relation is not amorphous nor is it
merely preparatory. [Equatorial Realty Development
vs. Mayfair, 1996]
EFFECT OF PERFECTION
st
Right of 1 Refusal
Bilateral
Price and other terms of
payment are certain
Unilateral
Price and other terms
are yet to be agreed
upon
The thing to be sold must be determinate
(D) (E)
st
Right of 1 Refusal
PAGE 178
UP COLLEGE OF LAW
SALES
Where to Deliver
(1) A hierarchy is followed (STOR):
(a) Stipulation
(b) Usage of trade
(c) Sellers place of business (office)
(d) Sellers residence
Exceptions:
(1) Statute of Frauds [Art,1403 (2),CC]
(a) Contract or some memorandum thereof must
be in writing and subscribed by the party or his
agent, otherwise contract is unenforceable;
unless ratified by failure to object to oral
evidence or acceptance of benefits under the
contract
(b) Statute of Frauds covers:
i. Sale of goods, chattels, or things in action at
a price not less than P500
ii. Sale not to be performed within 1 year
iii. Sale of real property or an interest therein
[Art 1358, CC]
(c) Applies only to executory contracts, not to
contracts either totally or partially performed.
[Iigo v. Estate of Maloto, 1967]
Exceptions:
(a) Buyer signifies his approval or acceptance to
the seller or does any other act adopting the
transaction
(b) Retains the goods without giving notice of
rejection after the time fixed has expired; if no
time has been fixed, after the expiration of a
reasonable time [Art 1502, CC]
Transfer of Ownership
be
Depends
on
the
character or quality of
goods
Subject to a suspensive
condition
Risk of loss remains
with the seller
What to Deliver
(1) Thing sold [Art. 1495]
(2) Fruits [Art. 1164 & 1537]
(3) Accessions and accessories [Art. 1166 & 1537]
(a) Improvements by seller at his expense grants
him a usufructuary right.
(b) No indemnification
(c) But he may remove it to the extent that there
is no damage [Art. 1538]
Ownership
passes
upon delivery, but
buyer may revest
ownership in the seller
by
returning
or
tendering the goods
within the time fixed in
the contract
Depends on the will of
the buyer
Subject to a resolutory
condition
Risk of loss remains
with the buyer
Express Reservation
If it was stipulated that ownership in the thing shall
not pass to the purchaser until he has fully paid the
price [Art 1478, CC]
PAGE 179
UP COLLEGE OF LAW
SALES
KINDS OF DELIVERY
(1) ACTUAL DELIVERY
(a) When deemed made: when the thing sold is
placed in the control and possession of the
vendee [Art. 1497]
(b) Not always essential to passing of title [Art.
1475]
(c) Parties may agree when and on what
conditions the ownership shall pass to the
buyer [E.g.: Art 1478 where ownership will only
pass after full payment of the price]
Exceptions:
i. The intention of the parties is otherwise.
ii. At the time of execution, the subject
matter was not subject to the control of
the seller which must subsist for a
reasonable length of time after execution.
[Pasagui v Villablanca, 1975]
Control over thing sold must be such that seller is
capable of physically transferring it to buyer
PAGE 180
UP COLLEGE OF LAW
SALES
(2) Immovables
PAGE 181
UP COLLEGE OF LAW
SALES
Annotation of Adverse
Claim
causes which may not adjudged invalid or
be attributable to the unmeritorious by the
claimant
Court
Both are intended to protect the interest of a
claimant by notifying and cautioning other
persons that said property is subject to a claim.
Lis Pendens
GOOD FAITH
(b) Presumption
Risk of Loss
GENERAL RULE ARTS. 1263, 1189
Res perit domino: Owner bears risk of loss
BASIS: Ownership is not transferred until delivery.
Total Loss
Contract is ineffective.
Because there can
be no contract without
an object
Annotation of Adverse
Claim
May be cancelled only
in one instance, i.e.,
after the claim is
PAGE 182
UP COLLEGE OF LAW
SALES
1504
By delivery of the
document to another
Endorsed in blank by
the person to whose
order the goods were
supposed
to
be
delivered
Goods are deliverable
to the order of a
specified person
By indorsement of
such person [Art. 1509,
CC]
(1) Owner
(2) Person to whom the possession or custody of the
document has been entrusted by the owner
(a) If bailee undertakes to deliver the goods to
such person
(b) If document is in such form that it may be
negotiated by delivery
Documents of Title
How negotiated
PAGE 183
Delivery of a negotiable
document of title to
another if by the terms
thereof, the goods are
deliverable to bearer, or
when the document
was endorsed in blank
by the person to whose
order the goods are
deliverable.
The assignment of
rights of the consignee
of a non-negotiable
document of title to
another; or
In
a
negotiable
document of title, the
buyer may acquire a
better title than his
transferor.
UP COLLEGE OF LAW
SALES
PAGE 184
UP COLLEGE OF LAW
SALES
Performance of Contract
DELIVERY OF THING SOLD
(1) SALE OF MOVABLES ARTS. 1522, 1537, 1480
(a) When Quantity less than expected
i. Buyer may reject all
ii. Buyer accepts with knowledge of sellers
inability to deliver the rest buyer pays at
contract price
iii.Buyer has used or disposed prior to knowing
sellers inability to deliver the rest buyer
pays fair value
(b) Quantity more than expected
i. If divisible, buyer may reject excess
ii. If indivisible, buyer may reject all
(c) Quality different or different goods
i. If divisible, buyer may accept the goods
compliant with contract and reject those
that are not
ii. If indivisible, buyer may reject all [Art. 1522]
(d) Sale of specific mass of goods
i. In the sale of fungibles where the measure
or weight has not been agreed upon nor is
there a fixed rate based upon a
measurement, the subject matter of the
sale is a determinate object the specific
mass; seller is merely required to deliver
such mass even if actual quantity falls short
of parties estimate [Art. 1480]
(e) Delivery by installments
i. By default, buyer is not bound to accept
delivery of goods by installments
PAGE 185
UP COLLEGE OF LAW
SALES
Payment of interest:
Buyer is liable for interest when: (SFD)
(1) Interest is stipulated;
(2) Thing sold produces fruits or income;
(3) Buyer is in default - interest accrues from the
time of judicial or extrajudicial demand for
payment
Suspension of payments:
Buyer may suspend payment when:
(1) His ownership or possession of the thing is
disturbed; OR
(2) He has reasonable grounds to fear such
disturbance by a vindicatory action or a
foreclosure of mortgage
PAGE 186
UP COLLEGE OF LAW
SALES
Condition
thing or some other
circumstance
Warranties
Definition: A statement or representation made by
the seller contemporaneously and as part of the
contract of sale, having reference to the character,
quality, or title of the goods, and by which he
promises or undertakes to ensure that certain facts
are or shall be as he then represents.
CONDITION V. WARRANTY
Condition
Pertains to and affects
the existence of the
obligation
Non-happening does
not amount to breach
of contract
Must be stipulated
May attach either to the
sellers duty to deliver
Warranty
sellers obligations as
to the subject matter
Warranty
Dealers or Traders
Talk
(a) Affirmation of the
value of the thing
or statement of the
sellers opinion only
is not a warranty
unless:
i. The seller made
it as an expert;
ii. It was relied
upon by the
buyer. [Art.1546]
(b) Ordinarily,
what
does not appear
on the face of the
written instrument
[Moles v. IAC, 1989]
Goes
into
the
performance of an
obligation and may, in
itself, be an obligation
Non-fulfillment
constitutes breach of
contract
Stipulation
or
operation of law
Always relates to the
subject matter or the
PAGE 187
Express Warranty
False Representation
Concealment of facts
does not necessarily
amount
to
false
representation
When concealment of
facts comes with an
active misstatement of
fact or a partial
statement of fact such
that withholding of
that unsaid portion
makes that which is
stated absolutely false
UP COLLEGE OF LAW
Express Warranty
SALES
False Representation
However, buyer who
fails
to
inspect
condition of property
despite
ample
opportunity to do so
when there is no
opposition on the part
of seller to inspect
cannot later on allege
false
representation.
[Phil Mftg Co. v Go
Jucco, 1926]
ENCUMBRANCE/NON-
(TODS)
(1) Implied Warranty of Title
(2) Implied Warranty against Encumbrance/NonApparent Servitudes
(3) Implied Warranty against Hidden Defects [Art.
1547]
(a) Implied warranty as to Merchantable Quality
and Fitness of Goods
(b) Implied warranty against Redhibitory Defect
in the Sale of Animals [Art. 1572]
(c) Quality and Fitness of Goods in Sale by
Sample or Description
(4) Other Warranties
Merchantable Quality:
(1) Where the goods are brought by description from
a seller who deals in goods of that description
[Art.1562]
(2) In a sale by sample, if the seller is a dealer in
goods of that kind and the defect is not apparent
on reasonable examination of the sample
[Art.1566]
PAGE 188
UP COLLEGE OF LAW
SALES
EFFECTS OF WAIVERS
Only applicable to waiver of warranty against
eviction; parties may increase or decrease warranty
against eviction but the effect depends on good/bad
faith of the seller:
(1) Seller in bad faith and there is warranty against
eviction null and void
(2) Buyer without knowledge of a particular risk and
made general renunciation of warranty not
waiver but merely limits liability of seller in case
of eviction (pay value of subject matter at the
time of eviction)
(3) Buyer with knowledge of risk of eviction assumed
its consequences and made a waiver vendor not
liable
(4) Waiver to a specific case of eviction wipes out
warranty as to that specific risk but not as to
eviction caused by other reasons
[ARTS. 1555,
1556]
Total Eviction
Enforce
eviction
liability
Partial Eviction
for
PAGE 189
Enforce
liability
(demand VICED)
OR
Rescind
(a) If he would not
have bought the
thing sold without
the part lost;
(b) BUT he must
return the thing
without
other
encumbrances
than those which it
had
when
he
acquired it
UP COLLEGE OF LAW
Total Eviction
SALES
Partial Eviction
interests,
and
ornamental
expenses, IF sale
was made in bad
faith
(1) Rules:
(a) Buyer need not appeal from decision to hold
seller liable for eviction
(b) When adverse possession commenced before
sale, but prescription period completed after
transfer: seller is not liable
(c) If property sold for nonpayment of taxes due
and not made known to the buyer before the
sale: seller liable
(d) Judgment debtor also responsible for eviction
in judicial sales, unless it is otherwise decreed
in the judgment
(1) Remedies
(a) Withdraw from contract + damages
(b) Demand a proportionate reduction of the
price + damages
(2) If sale is rescinded:
(a) Buyer must return animal in the condition in
which it was sold and delivered
(b) Buyer shall be liable for injury due to his
negligence.
1560]
SEC.68]
7394,
Implied Warranty
(1) Demand
repair (1) Retain the goods
within 30 days
and
recover
(a) Extendible for
damages
causes beyond
OR
the control of (2) Reject the goods,
the warrantor
cancel
contract
(2) Demand refund of
and recover from
price
minus
seller so much of
amount
directly
the purchase price
attributable to the
as has been paid +
use
of
the
damages
consumer prior to
the discovery of the
non-conformity
[ART.
1567-1571]
[ARTS.
Breach of Contract
General Remedies [Art. 1191, CC]
The following remedies arise from the bilateral
nature of the contract of sale:
(1) Specific performance
(2) Rescission
General rule: Rescission of a contract will not be
permitted for a slight or casual breach, but only
PAGE 190
UP COLLEGE OF LAW
SALES
Prescriptive periods
(1) 10 years if based on written contract
(2) 6 years if based on oral contract
REMEDIES OF THE SELLER ARTS. 1636, 1594
How exercised?
(1)By obtaining actual possession of the
goods
(2) By giving notice of his claim to the
carrier/other bailee who has possession of
the goods
(a) Carrier must redeliver goods to seller,
or according to his instructions
(b) Carrier not obliged to redeliver until the
negotiable document of title, if any, has
been surrendered for cancellation
When available:
(1) Goods are sold without stipulation as to
credit
(2) Goods are sold on credit, but term of credit
has expired
(3) Buyer becomes INSOLVENT
When lost:
(1) Seller delivers goods to carrier or other
bailee for transmission to the buyer under
a straight or non-negotiable bill of lading
(2) Buyer/his
agent
lawfully
obtains
possession of goods
(3) Seller waives it
(a) But it is not lost with respect to the
remainder of the goods when only
partial delivery is made (unless such is
symbolic delivery of the whole)
(b) It is not lost by the mere fact that seller
obtained a judgment for the price
When revived:
Goods are returned by the buyer in a wrongful
repudiation of the contract
PAGE 191
UP COLLEGE OF LAW
SALES
Effects:
(1) Seller is no longer liable to the original
buyer upon the contract of sale or for any
profit made by the resale
(2) Buyer at resale acquires good title as
against the original owner
(3) In case resale is at a loss, seller is entitled
to recover the difference from the original
buyer
(4) Seller may recover damages from original
buyer for breach of contract
(d) Special right to rescind:
RETURN of the title over the undelivered
goods to the seller, and right to recover
DAMAGES for breach of contract [Art. 1534]
Available to unpaid seller who has a right of
lien or who has stopped the goods in transitu
When available:
(1) Seller expressly reserved his right to
rescind in case buyer defaults
(2) Buyer has been in default in payment for
an unreasonable time
Transfer of title shall not be held to have been
rescinded by the unpaid seller until he
manifests by notice to the buyer or some other
overt act an intention to rescind.
(e) When the whole of the price has not been paid
or tendered;
(f) 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.
RECTO LAW: SALE OF MOVABLES
INSTALLMENT ARTS. 1484-1486
ON
PAGE 192
UP COLLEGE OF LAW
SALES
Sale
of
Immovables
on
PAGE 193
UP COLLEGE OF LAW
SALES
of price
OR
Rescission, if:
(a) Lack in area is at
least 1/10 of what is
stated, or inferior
value of thing sold
exceeds 1/10 of
price
(b) Buyer would not
have bought the
property has he
been aware of the
inferior quality or
smaller area
OR
Accept the whole and
pay at contract rate
Extinguishment of Sale
CAUSES ARTS. 1600, 1231
Generally, extinguished by the same causes as all
other obligations [Arts.1600, 1231]
(P-PLAN-C3-R3)
(1) Payment/performance
(2) Prescription
(3) Loss of thing due
(4) Annulment
(5) Novation
(6) Condonation/remission
(7) Confusion/merger
(8) Compensation
(9) Rescission
(10) Resolutory condition fulfilled
(11) Redemption (Conventional or Legal)
More
Reject the excess
PAGE 194
UP COLLEGE OF LAW
SALES
DEFINITION
PERIOD
(1) The seller shall receive the thing free from all
charges or mortgages constituted by the buyer
BUT he shall respect leases executed by the
buyer in good faith and in accordance with local
custom.
(2) If there are growing fruits at the time of sale and at
the time of redemption: no reimbursement or
prorating if the buyer did not pay indemnity at the
time of sale
(3) If there were no growing fruits at the time of sale,
but some exist at the time of redemption: fruits
prorated (buyer entitled to part corresponding to
time he possessed the land in the last year,
counted from the anniversary of the date of sale)
BY WHOM EXERCISED
(1) Vendor
(2) His heirs, assigns or agents
(3) Creditor, if he has exhausted the property of the
vendor
(4) Co-owners of an immovable, if they sold their
interests to the same person, may only redeem
their respective shares
(a) Vendee cannot be compelled to agree to a
partial redemption
(b) If the co-owners sold their interest to the same
person who previously bought the share of a
co-owner subject to a right of redemption,
then the latter may be compelled to redeem
the whole property
EFFECT OF NON-REDEMPTION
HOW EXERCISED
PAGE 195
Right to Redeem
Option to Purchase
Generally a principal
contract and may be
created independent of
another contract
Must
have
a
consideration separate
and distinct from the
purchase price to be
valid and effective [Arts.
UP COLLEGE OF LAW
Right to Redeem
SALES
Option to Purchase
1324 and 1479]
1602
PAGE 196
UP COLLEGE OF LAW
SALES
Period of Redemption
(a) No stipulation: 4 years from the date of contract
(b) When there is agreement: Period not to exceed
10 years
(c) General Rule: Period starts to run from the date
of the execution of the contract
(d) Exception: When the efficacy of the sale is
subject to a suspensive condition, period
should be counted not from the date appearing
on the instrument, but from the date when the
condition
is
fulfilled,
marking
the
consummation of the sale [Tolentino citing
Manresa].
DEFINITION
MANNER
To whom granted
1616
Period
PAGE 197
UP COLLEGE OF LAW
SALES
To whom granted
successorin- interest, or
creditor with subsequent
lien, in case of execution
sale [Rule 39, Sec.27,
ROC]
Debtor-mortgagor,
successors-in- interest,
judicial/judgment
creditor, any person
having a lien on the
property, in case of
extrajudicial foreclosure
of mortgage [Act No.
3135. Sec. 6.]
Debtor-mortgagor
in
case
of
judicial
foreclosure of real estate
mortgage
IF
the
mortgagee is a bank or a
banking institution. [The
General Banking Law of
2000]
Agricultural lessee w/o
knowledge of sale of
landholding
[Agrarian
Land
Reform Code, Sec.12]
Period
registration
of
certificate of sale
the
PAGE 198
Right of Pre-emption
Right of Redemption
UP COLLEGE OF LAW
SALES
favor of a bank
(a) within 1 year
after
the
sale
(not
available in
case of a
corporate
mortgagor)
Amount of redemption
(a) Amount of the purchase
(b) Interest at 1% per month from the time of the sale
up to the time of redemption
(c) Any assessment or taxes which the purchaser
may have paid
months
after
the
sale
Period:
(a) Within 5 years from the date of conveyance
(b) If pacto de retro sale, the period to redeem
cannot be less than 5 years
In execution sales
(a) Judgment debtor
(b) Successor in interest
(c) Creditor having a lien
on the property sold
by
attachment,
judgment
or
mortgage on the
property subsequent
to the judgment
Period to redeem
Extra
judicial Execution sale
If
land
is
foreclosure
(a) within
12 mortgaged in
PAGE 199
UP COLLEGE OF LAW
SALES
DEFINITIONS
DEFINITION OF "SALE" OR "SELL"
(a) include every disposition, or attempt to dispose,
for a valuable consideration, of a subdivision lot,
including the building and other improvements
thereof, if any, in a subdivision project or a
condominium unit in a condominium project.
(b) also include a contract to sell, a contract of
purchase and sale, an exchange, an attempt to
sell, an option of sale or purchase, a solicitation of
a sale, or an offer to sell, directly or by an agent,
or by a circular, letter, advertisement or
otherwise.
(c) privilege given to a member of a cooperative,
corporation, partnership, or any association
and/or the issuance of a certificate or receipt
evidencing or giving the right of participation in,
or right to, any land in consideration of payment
of the membership fee or dues, shall be deemed
a sale within the meaning of this definition.
PAGE 200
UP COLLEGE OF LAW
SALES
PAGE 201
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SALES
PAGE 202
UP COLLEGE OF LAW
SALES
OTHER DEFINITIONS
Sec. 3. As used in this Act, unless the context
otherwise requires:
(a) "Condominium" means a condominium as
defined in Section 2.
(b)
"Unit" means a part of the condominium
project intended for any type of independent use
or ownership, including one or more rooms or
spaces located in one or more floors (or part or
parts of floors) in a building or buildings and such
accessories as may be appended thereto.
(c) "Project" means the entire parcel of real property
divided or to be divided in condominiums,
including all structures thereon,
(d)
"Common areas" means the entire project
excepting all units separately granted or held or
reserved.
(e) "To divide" real property means to divide the
ownership thereof or other interest therein by
conveying one or more condominiums therein but
less than the whole thereof.
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UP COLLEGE OF LAW
SALES
STOCKHOLDER/MEMBER DEMANDING
PAYMENT FOR SHARES OR INTEREST AKA
APPRAISAL RIGHT [SECTION 17]
By-laws of the condominium corporation shall
provide that any shareholder/member demanding
payment for his share or interest must also consent to
sell his separate interest in the project to the
corporation or any buyer of the corporation's choice.
CONTENTS OF A DECLARATION OF
RESTRICTIONS [SECTION 9]
(1) Provisions for the management of the project by
any of the ff bodies:
(a) Condominium corporation
(b) Association of condominium owners
(c) Board of governors elected by condominium
owners
(d) Management agent elected by the owners or
by the board named in the declaration
(2) Provisions for voting majorities quorums, notices,
meeting date, and other rules governing such
body or bodies
(3) Powers of the management body
(4) Maintenance of insurance policies (fire, casualty,
workmen's compensation, etc)
(5) Maintenance, utility, gardening and other services
for the common areas
(6) Amendment of the restrictions
(7) Reasonable assessment to meet expenditures
(8) And many other provisions - the common thread
is the management and maintenance of the
common areas and the manner of exercise of the
management body's powers
PAGE 204
UP COLLEGE OF LAW
SUCCESSION
PAGE 205
UP COLLEGE OF LAW
SUCCESSION
General Provisions
KINDS
KINDS OF SUCCESSION
KINDS OF SUCCESSORS
Inheritance includes:
(a) All the property, rights and obligations of a
person which are not extinguished by his death
[Art 776, CC]
(b) 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 [Art 781, CC]
KINDS OF HEIRS
Testamentary Succession
WILLS
IN GENERAL
PAGE 206
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SUCCESSION
Kinds of Wills
(5) Notarial an ordinary or attested will, which must
comply with the requirements of the law [Articles
804-808, CC]
(6) Holographic a will entirely written, dated and
signed by the hand of the testator [Art. 810, CC]
Characteristics of Wills
(1) Purely personal will-making is non-delegable
(a) making of a will cannot be left in whole or in
part of the discretion of a third person, or
accomplished through the instrumentality of
an agent or attorney [Art 784, CC]
(b) testator may not make a testamentary
disposition in such manner that another
person has to determine whether or not it is to
be operative [Art 787, CC]
What cannot be
rd
delegated to 3 persons
(a) designation of heirs,
devisees
and
legatees
(b) duration/efficacy of
designation
(c) determination
of
portions,
when
referred to by name
[Art 785, CC]
Kinds of Ambiguities
Patent or Extrinsic
Ambiguity
(a) one which appears
upon the face of the
instrument
Latent or Intrinsic
Ambiguity
(a) one which cannot be
seen from the reading
of the will but which
appears only upon
consideration
of
extrinsic
circumstances
Resolving Ambiguities:
General Rule: Intrinsic or extrinsic evidence may be
used to ascertain the intention of the testator
PAGE 207
UP COLLEGE OF LAW
SUCCESSION
FORM
Governing Law
Formal Validity Rules
Forms and solemnities of will are governed by the law
of the country in which the will was executed [Art 17,
CC]
Requisites - (SAP)
(a) Testator is of Sound mind at the time of execution
[Art. 798, CC]
(b) Not under 18 years of Age [Art. 797, CC]
(c) Not expressly Prohibited by law to make a will
[Art. 796, CC]
Age Requirement
Art 797, CC. Persons of either sex under the age of 18
cannot make a will.
Governing Law
Law in force at the time the will
was executed [Art. 795, CC]
Law of decedents nationality at
the time of his death [Art. 16 and
2263, CC]
PAGE 208
UP COLLEGE OF LAW
SUCCESSION
Exceptions:
(a) When the will consists of only one page
(b) When the will consists of only two pages, the first
of which contains all dispositions and is signed at
the bottom by the testator and the witnesses, and
the second page contains only the attestation
clause duly signed at the bottom by the
witnesses. [Abangan vs. Abangan (1919)]
Notarial Wills
Special Requirements for Notarial Wills.
(1) SUBSCRIPTION: Subscribed to, at the end [Art.
805, CC]
(a) By the testator himself; or
(b) By the testators name written by a
representative in his presence and under his
express direction.
Subscription
PAGE 209
UP COLLEGE OF LAW
SUCCESSION
Holographic Wills
Requisites
(1) In writing [Art. 804, CC]
(2) In a language known to the testator [Art. 804, CC]
(3) Entirely written, dated and signed in the hand of
the testator himself [Art. 810, CC]
Substantial Compliance
Art. 809, CC. 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.
Substantial compliance rule applies only in cases
when such defects and imperfections can be
supplied by an examination of the will itself
Examples:
(a) Whether all pages are consecutively numbered
(b) Whether the signatures appear in each and every
page
(c) Whether the subscribing witnesses are three
(d) Whether the will was notarized [Caneda v CA]
Advantages
Disadvantages
(a) No guarantee as to
the capacity of the
testator
(b) No protection against
violence, intimidation
or undue influence
(c) May not faithfully
express the will of the
testator due to faulty
expressions
(d) Can be easily falsified
and concealed
WITNESSES
General Rule
Devises or legacies in
favor of a spouse, parent
or child who also attests
to the will as a witness
shall be void
Notarial Will
NOTARIAL codicil ONLY
Exception
If there are three other
competent
witnesses,
the device or legacy shall
be valid and the
interested witness shall
be treated as a mere
surplusage
Holographic Will
Notarial Codicil; or
Holographic Codicil; or
Additional dispositions
below the signature,
dated and signed in the
hand of the testator.
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Effect
Joint Wills
Art. 818, CC. 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.
Art. 819, CC Wills, prohibited by the preceding article,
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.
REVOCATION
Joint Will
(1) A single testamentary instrument,
(2) Which contains the wills of two or more persons,
(3) Jointly executed by them,
(4) Either for their reciprocal benefit or for the benefit
of a third person.
Mutual Wills
(1) Executed pursuant to an agreement between two
or more persons,
(2) Jointly executed by them,
(3) Either for their reciprocal benefit or for the benefit
of a third person.
Reciprocal Wills
(1) Testators name each other as beneficiaries in
their own wills,
(2) under similar testamentary plans
Note: A will that is both joint and mutual is one
executed jointly by two or more persons, the
provisions of which are reciprocal and which shows
on its face the devises are made in consideration of
each other. Such is prohibited under Art. 819, CC.
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Place of
Revocation
Testators
Domicile
Governing Law
Foreign Country
Outside the
Philippines
Revival
(a) Takes place by
operation of law
(b) Restores a revoked
will
Nullity
Probate Requirement
Probate a Special Proceeding required to establish
the validity of a will and in order to pass real or
personal property [Art. 838, CC]
Matters to be proved in probate
(1) Whether the instrument which is offered for
probate is the last will and testament of the
decedent
(2) Whether the will has been executed in
accordance with the formalities prescribed by law
(3) Whether the testator had testamentary capacity
at the time of execution of the will
Issues to be resolved in probate proceedings [Art.
839]
General Rule: the probate court cannot inquire into
the intrinsic validity of testamentary provisions. Only
the extrinsic validity of such wills may be examined.
Exceptions: when practical considerations demand
the intrinsic validity of the will be resolved
(a) Acain vs Diongson (1987): When the will is
intrinsically void on its face such that to rule on its
formal validity would be a futile exercise
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Revocation v. Disallowance
Revocation
Disallowance
843-849; 851-853]
PRETERITION
INSTITUTION OF HEIRS
Institution of Heirs an act by virtue of which the
testator designates in his will the person or persons
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SUBSTITUTION OF HEIRS
DEFINITION
BALANE:
(a) If the heir in question is instituted in the will but
the portion given to him by the will is less than his
legitime there is no preterition. [Reyes vs
Barretto-Datu (1967)]
(b) If the heir is given a legacy or devise there is no
preterition. [Aznar vs Duncan (1966)]
(c) If the heir had received a donation inter vivos from
the testator the better view is that there is no
preterition. The donation inter vivos is treated as
an advance on the legitime under Articles 906,
909, 910 and 1062
(d) The remedy, if the value of inheritance, legacy or
devise, or donation inter vivos is only for
completion of his legitime under Articles 906 and
907
KINDS
Preterition
Disinheritance
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CONDITIONS
Note:
(a) Palacios vs. Ramirez (1982): Degree refers to
degree of relationship.
(b) PCIB vs. Escolin (1974): In the absence of an
obligation on the part of the first heir to preserve
the property for the second heir, there is no
fideicommissary substitution.
Effects of predecease of the first heir/fiduciary or the
second heir/fideicommisary
(a) Legend:
(1) T Testator
(2) FH First Heir / Fiduciary
(3) SH Second Heir / Fideicommissary
Substitute
(b) Situation 1: If the following is the sequence of
death of the three parties: FH SH T, who will
inherit? The legal heirs. There is no
fideicommissary substitution because FH and
SH are not living at the time of the testators
death. (Art 863, CC)
(c) Situation 2: T SH FH, who will inherit? The
SH and his heirs under Art. 866, CC. This is
because the SH passes his rights to his own
heirs when he dies before FH.
(d) Situation 3: FH T SH, who will inherit? No
specific provision in law, but SH inherits because
the T intended him to inherit.
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Caucin Muciana
DEFINITION: A security to guarantee the return of
the value of property, fruits, and interests, in case of
contravention of condition, term or mode
If the testator is an
ILLEGITIMATE CHILD:
(1) LC and descendants
(2) ILC and descendants
(3) In default of Nos. 1-2.
ILP only
(4) SS
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Legitimate Children
[LC] & Descendants
LC alone
1 LC, SS
LC, SS
LC, ILC
in equal portions
Surviving
Spouse [SS]
Illegitimate
Children [ILC]
Legitimat
e Parents
[LP] &
Ascendant
s
Same portion as 1
LC
1/4 (preferred)
Same as share of
1 LC
LP alone
LP, ILC
LP, SS
1
0
11
1/8
12
ILC, SS
1/3
13
SS alone
1/2
1/2 share of 1
LC (for reach
ILC)
1/2 share of 1
LC (for each
child)
N.B. The share
of the ILC may
suffer reduction
pro
rata
because spouse
is
given
preference
1/2 share of 1
LC (for each
child)
1/2
in equal
portions
ILC alone
PAGE 217
1/2
1/2
1/2 in equal
portions
1/3 in equal
portions
1/2
Illegitimate
Parents
[ILP]
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Surviving Relatives
SUCCESSION
Legitimate Children
[LC] & Descendants
Surviving
Spouse [SS]
14
ILP alone
15
ILP, SS
16
Adopter, ILC, SS
1/3
Partial impairment
Impairment
by
inofficious donations
Legitimat
e Parents
[LP] &
Ascendant
s
Illegitimate
Parents
[ILP]
1/2
Illegitimate
Children [ILC]
1/4
1/3
1/3
(adopter)
Remedy
Annulment of institution
and reduction of legacies
and devises [Art. 854,
CC]
Reduction
of
the
disposition insofar as
they may be inofficious
or excessive [Art. 907,
CC]
Completion
of
the
legitime [Art. 906, CC]
Collation reduction of
donations [Arts. 771 and
911, CC]
RESERVA TRONCAL
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rd
Two Views
(1) Reserva Maxima: The entire property will be
considered acquired as legitime and therefore
wholly reservable
(2) Reserva Minima: One half is reservable, the other
half is not subject to reserva troncal [Tolentino, p.
284]
DISINHERITANCE
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4
5
[CC 1032]
Unworthiness
PAGE 220
[CC 921]
Spouse
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SUCCESSION
10
11
[CC 919]
Children &
Descendants
[CC 920]
Parents &
Ascendants
*
[CC 921]
Spouse
*
*
[CC 1032]
Unworthiness
*
12
13
14
15
Ineffective Disinheritance
Preterition
Revocation
Modes of Revocation.
(1) Reconciliation [Art 922, CC]
(2) Subsequent institution of the disinherited heir
(3) Nullity of the will which contains the
disinheritance.
Only
annuls
the
institution in so far as it
prejudices the person
disinherited
Legacy
PAGE 221
Devise
A gift of real property
given in a will
It is devised
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SUCCESSION
encumbrance or interest of
another person (Art. 932, CC)
Legatee
or
devisee
subsequently alienates the
thing (Art. 933,CC)
After alienating the thing, the
legatee
or
devisee
subsequently reacquires it
gratuitously (Art. 933, CC)
the interest or
encumbrance
Ineffective
Effect on the
legacy/devise
Legatee
or
devisee
can
demand
reimbursement
from the heir or
estate
Effect on the
legacy/devise
Void
Ineffective
Effective
Effect on the
legacy/devise
Ineffective
Valid only as to
Effect
(a) If testator does not really owe the debt, the disposition is void
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Legacy of support
Effect
(b) If the order is to pay more that the debt, the excess is not due
(c) This is without prejudice to the payment of natural obligations
(a) The choice is with the heir, or the executor or administrator
(b) If the heir, legatee or devisee dies the right passes to their heirs
(c) Once made, the choice is irrevocable
(a) Legacy is valid even if there are no things of the same kind in the estate
(b) Devise of indeterminate real property valid only if there are immovable property of
the same kind in the estate
(c) The choice belongs to the heir, legatee or devisee or the executor or administrator
(a) Lasts until the legatee is of age or beyond the age of majority in order that he may
finish some professional, vocational or general course provided he pursues his course
diligently
(b) If testator did not fix the amount, it is fixed in accordance with the social standing
and circumstances of the legatee and the value of the estate
(a) Lasts during lifetime of legatee
(b) If the testator used to give the legatee a sum of money for support, give the same
amount unless it is markedly disproportionate to the estate
(c) If testator did not fix the amount, it is fixed in accordance with the social standing
and circumstances of the legatee and the value of the estate
Order of Payment in Case the Estate Is Not Sufficient to Cover All the Legacies and Devises
ART. 911
ART. 950
Order of Preference
LIPO
(a) Legitime of compulsory heirs
(b) Donations Inter vivos
(c) Preferential legacies or devises
(d) All Other legacies or devises pro rata
RPSESO
(a) Remuneratory legacy/devise
(b) Preferential legacy/devise
(c) Legacy for Support
(d) Legacy for Education
(e) Legacy/devise of Specific, determinate thing which forms
a part of the estate
(f) All Others pro rata
Application
(a) When the reduction is necessary to preserve the (a) When there are no compulsory heirs and the entire estate
legitime of compulsory heirs from impairment whether
is distributed by the testator as legacies or devises; or
there are donations inter vivos or not; or
(b) When there are compulsory heirs but their legitime has
(b) When, although, the legitime has been preserved by
already been provided for by the testator and there are
the testator himself there are donations inter vivos.
no donations inter vivos.
NOTE: Art. 911, CC governs when there is a conflict
between compulsory heirs and the devisees and legatees.
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(1) Relatives
(a) Legitimate ascendants
(b) Illegitimate parents
(c) Legitimate children
(d) Illegitimate children
(e) Surviving Spouse
(f) Brothers, sisters, nephews and nieces (BSNN)
(g) Other collateral relatives
(2) Surviving spouse
(3) State (through escheat proceedings)
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Note:
(1) If one of the legitimate ascendants, illegitimate
parents, legitimate children or illegitimate
children survives, the brother, sisters, nephews,
and nieces (BSNN) are excluded.
(2) If one of the legitimate ascendants, illegitimate
parents, legitimate children, illegitimate children
or surviving spouse survives, the other collateral
relatives and the state are excluded.
(3) If any of the heirs concur in legitimes, then they
also concur in intestacy.
RELATIONSHIP
EFFECT OF REPRESENTATION
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REPRESENTATION IN ADOPTION
WHEN IT OCCURS
Survivors
LC, ILC, SS
LP/ILP, or legitimate
ascendants
Adopter
SS/ILC
Adopters
LP or ascendants
Adopter
ILC or descendants
Adopters
SS
ILC
Adopter alone
Collateral blood relatives
alone
PER STIRPES
PAGE 226
Share
As in the case of ordinary
intestate succession
1/3
1/3
1/3
Entire estate
As in the case of ordinary
intestate succession
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4
5
State
State
1
2
3
Intestate Heirs
Excludes
Excluded By
Concurs With
LC + LD
Ascendants,
Collaterals and
State
ILP,
Collaterals and
State
Collaterals and
State
Collaterals and
State
Collaterals other than
siblings, nephews and
nieces, State
No one
SS + ILC
No one
SS, LC, LP
LC
ILC + SS
LC and ILC
SS
No one
ILC + D
LP + LA
ILP
SS
Siblings,
Nephews
Nieces
th
Other collaterals within 5
degree
State
Everyone
No one
PAGE 227
UP COLLEGE OF LAW
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State
If there are no other intestate heirs, the State inherits
the entire estate through escheat proceedings. [Art.
1011, CC]
RIGHT OF ACCRETION
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Testamentary Succession
Legitime
Free Portion
Successio
n
n
Intestate
Succession
Succession
Incapacity
Represent
-ation
Intestate
Successio
n
Accretion
Intestate
Succession
Representa
tion
Intestate
Succession
Disinheritan
ce
Represent
-ation
Intestate
Successio
n
Intestate
Successio
n
Accretion
Accretion
1032
Testamentary Succession
Legitime
Free Portion
Represent
Accretion
-ation
Intestate
Intestate
Successio
Cause Of
Vacancy
Repudiation
Exceptions [Balane]:
(1) In testamentary succession, if the testator
provides otherwise
(2) If the obligation is purely personal, and hence
intransmissible
Cause Of
Vacancy
Predecease
Intestate
Succession
Representation
Intestate
PAGE 229
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(A3F3P2)
Exceptions:
(1) Those falling under 2, 3, and 5 of Art. 1032 when
the final judgment is rendered
(2) Those falling under 4 of Art. 1032 when the
month allowed for the report expired
(3) If the institution is conditional when the
condition is complied with
Implied
Effected
when
the
testator makes a will
instituting the unworthy
heir with knowledge of
the cause of incapacity
Revoked
when
the
Acceptance
Repudiation
(a) Renders
the
transmission
of
successional rights
ineffective
(b) Equivalent to an act
of disposition or
alienation
(c) Publicity
requirement
is
necessary for the
protection of other
heirs and creditors
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COLLATION
CONCEPT OF COLLATION
WHAT TO COLLATE
Absolutely no collation
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Concept
(a) Separate, Divide, Assign. Partition is the
separation, division and assignment of a thing
held in common among those to whom it may
belong. The thing itself or its value may be
divided. [Art. 1079, CC]
(b) Owned in common. Before partition, the whole
estate of the decedent is owned in common by
the heirs. [Art 1078, CC]
(c) Thing or value may be divided. [Art 1079]
(d) Acts deemed partition. Every act which is intended
to put an end to indivision among heirs and
legatees or devisees is deemed a parition,
although it should purport to be a sale, an
exchange, a compromise, or any other
transaction. [Art 1082, CC]
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Effect
A partition legally made confers upon each heir the
exclusive ownership of the property adjudicated to
him [Art 1091, CC]
NULLIFICATION OF PARTITION
Warranty
(a) After the partition has been made, the co-heirs
shall be reciprocally bound to warrant the title to,
and the quality of, each property adjudicated
[Art. 1092 CC]
(b) The reciprocal obligation of warranty referred to
in the preceding article shall be proportionate to
the respective hereditary shares of the co-heirs;
(1) But if any one of them should be insolvent, the
other co-heirs shall be liable for his part in the
same proportion, deducting the part
corresponding to the one who should be
indemnified.
(2) Those who pay for the insolvent heir shall
have a right of action against him for
reimbursement, should his financial condition
improve [Art. 1093 CC]
(c) An action to enforce the warranty among the coheirs must be brought within ten years from the
date the right of action accrues. [Art. 1094 CC]
(d) If a credit should be assigned as collectible, the
co-heirs shall not be liable for the subsequent
insolvency of the debtor of the estate, but only for
his insolvency at the time the partition is made. [Art
1095, CC]
(e) The warranty of the solvency of the debtor can
only be enforced during the five years following
the partition.
(f) Co-heirs do not warrant bad debts, if so known to,
and accepted by the distributee.
(1) But if such debts are not assigned to a co-heir,
and should be collected, in whole or in part,
the amount collected shall be distributed
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PAGE 234
5 years
partition
from
4 years
partition
form
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PAGE 235
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Contract of Partnership
DEFINITION
By the contract of partnership two or more persons
bind themselves to contribute money, property, or
industry to a common fund, with the intention of
dividing the profits among themselves.
Two or more persons may also form a partnership for
the exercise of a profession. [Article 1767]
CHARACTERISTICS
The contract of partnership is:
(1) Consensual, because it is perfected by mere
consent.
(2) Nominate, because it has a specific name.
(3) Bilateral or multilateral, because it is entered into
between two or more persons.
(4) Principal, because its existence does not depend
on another contract.
(5) Onerous, because money, property or industry are
contributed by the parties.
(6) Preparatory, because it is entered into to carry out
a business or specific venture.
(7) Commutative, because the undertaking of each is
considered as equivalent of that of the others.
ELEMENTS
There is a contract of partnership when:
(1) There is a meeting of the minds;
(2) To form a common fund;
(3) With intention that profits and losses will be
divided among the contracting parties.
ESSENTIAL FEATURES
A partnership contract has the following essential
features:
(1) There must be a valid contract.
(2) The parties must have legal capacity.
(3) There must be a mutual contribution of money,
property, or industry to a common fund.
(4) The object must be lawful.
(5) The primary purpose must be to obtain profits
and to divide the same among the parties.
(6) The partnership has a juridical personality
separate from individual partners [Article 1768].
As such, "Any immovable property or an interest
therein may be acquired in the partnership name.
Title so acquired can be conveyed only in the
partnership name." [Article 1774]
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COMMENCEMENT
PAGE 237
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AS TO LIABILITY OF PARTNERS
RELATIONS CREATED
(1) Among the partners themselves.
(2) Between the partners and the partnership.
(3) Between the partnership and third persons with
whom it contracts.
(4) Between the partners and such third persons.
A professional partnership
partnership. [Article 1783]
is
particular
KINDS OF PARTNERS
(1) Capitalist, whose contribution is money or
property;
(2) Industrial, whose contribution is only his industry;
(3) General, whose liability to third persons extends
to his separate property;
(4) Limited, whose liability to third persons is limited
to his capital contribution;
(5) Managing, designated to manage the affairs or
business of the partnership;
(6) Liquidating, takes charge of the winding up of
partnership affairs;
(7) By estoppel, who is not really a partner but is
liable as such for the protection of innocent third
persons;
(8) Continuing, who continues the business after
dissolution of the partnership by admission of a
new partner, or retirement, death or expulsion of
existing partners.
(9) Surviving, who remains a partner after dissolution
by death of any partner;
(10)Subpartner, who is not a member of the
partnership but contracts with a partner with
KINDS OF PARTNERSHIP
AS TO LEGALITY OF EXISTENCE
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Share in losses
Exempted as to losses as
between partners, but
liable to third persons,
without prejudice to
reimbursement from
capitalist partners
According to agreement; if
none, in proportion to
agreed share in the
profits;
if none, in proportion to
contribution
Engaging in business
Cannot engage in
Cannot engage, for his
business for himself,
own account, in the same
unless the partnership
kind of business as that of
expressly permits him to the partnership, unless
do so; should he do so
there is a stipulation to
without permission, the the contrary; should he do
capitalist partners (as well so, he shall bring to the
as industrial partners [De common fund any profits
Leon (2010)]) may (a)
accruing to him from his
exclude him from the firm, transactions and shall
or (b) avail themselves of personally bear all the
the benefits obtained in losses [Article 1808]
violation of the
prohibition, with right to
damages in either case
[Article 1789]
There is no mutual
representation among coowners
Death or incapacity of a
partner dissolves the
partnership
Death or incapacity of a
co-owner does not
dissolve the co-ownership
Partnership
Corporation
PAGE 239
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Partnership
Corporation
Partnership
Has no juridical
personality
Commencement date
may be stipulated
Commencement is on the
date of the celebration of
the marriage, and any
stipulation to the contrary
is void
Taxable as a corporation
Created by agreement
Partnership
Governed by agreement
Governed by law
Administration belongs to
the spouses jointly, but
decision of husband
prevails in disagreement
Voluntary Association
Has no juridical
personality
Capital is contributed
Partnership is primarily
liable; the partners are
liable only subsidiarily
Conjugal
Partnership of Gains
Created by voluntary
agreement of 2 or more
partners of either sex
Management shared by
all partners, unless
otherwise agreed upon
Partnership
Conjugal
Partnership of Gains
PAGE 240
Management shared by
all partners, unless
otherwise agreed upon
Administration belongs to
the spouses jointly, but
decision of husband
prevails in disagreement
UP COLLEGE OF LAW
Requisites:
(1) There is an imminent loss of the business of the
partnership;
(2) The majority of the capitalist partners are of the
opinion that an additional contribution to the
common fund would save the business;
(3) The capitalist partner refuses deliberately (not
because of financial inability) to contribute an
additional share to the capital; and
(4) There is no agreement that even in case of
imminent loss of the business, the partners are not
obliged to contribute.
PROHIBITION AGAINST ENGAGING IN BUSINESS
AMOUNT OF CONTRIBUTION
PAGE 241
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Exceptions:
(1) In case the receipt was issued for the account of
the partnership credit only, however, the sum
shall be applied to the partnership credit alone.
(2) When the debtor declares, pursuant to Article
1252, at the time of making the payment, to which
debt the sum must be applied, it shall be so
applied [Article 1792].
COMPENSATION OF LIABILITY
General rule: The liability for damages cannot be setoff or compensated by profits or benefits which the
partner may have earned for the partnership by his
industry.
Ratio: The partner has the obligation to secure the
benefits for the partnership. As such, the
requirement for compensation, that the partner be
both a creditor and a debtor of the partnership at the
same time, is not complied with [Article 1278; De Leon
(2010)].
Requisites:
(1) There exist at least two debts, one where the
collecting partner is creditor, and the other,
where the partnership is the creditor;
(2) Both debts are demandable; and
(3) The partner who collects is authorized to manage
and actually manages the partnership.
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ACCRUAL OF RIGHT
SUBPARTNERSHIP
PERSON OBLIGED
PRESCRIPTION OF ACTION
PAGE 243
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NATURE OF ACTION
Capital
With constant value
Property
RIGHTS OF ASSIGNEE
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FIRM NAME
Every partnership shall operate under a firm name,
which may or may not include the name of one or
more of the partners.
Requisites:
(1) Two or more partners have been appointed as
managers;
(2) There is no specification of their respective duties;
and
(3) There is no stipulation that one of them shall not
act without the consent of all the others.
STIPULATION ON UNANIMITY OF MANAGING PARTNERS
PAGE 246
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Obligations of partnership/
partners to third persons
The fact that a partner has left the country and the
payment of his share of the liability cannot be
enforced [Co-Pitco v. Yulo (1907)] or his liability is
condoned by the creditor [Island Sales v. United
Pioneers (1975)] cannot increase the liability of the
other partners.
Muoz (1907)].
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NATURE OF LIABILITY
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BY OPERATION OF LAW
CAUSES OF DISSOLUTION
WITHOUT VIOLATION OF THE AGREEMENT
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BY DECREE OF COURT
OTHER CAUSES
LIABILITY OF
DISSOLUTION
PARTNERS
IN
TRANSACTIONS
AFTER
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MANNER OF WINDING UP
Exceptions:
(1) The dissolution being by act of any partner, the
partner acting for the partnership had knowledge
of the dissolution; or
(2) The dissolution being by death or insolvency of a
partner, the partner acting for the partnership
had knowledge or notice of the death or
insolvency. [Article 1833]
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EXISTENCE OF RIGHT
Personally, but
subsidiarily, liable for
obligations of the
partnership
General Partner
Limited Partner
Extent of liability
Nature of contribution
Cash, property or industry Cash or property only, not
industry
Limited partnership
DEFINITION
A limited partnership is one formed by two or more
persons under the provisions of the following article,
having as members one or more general partners
and one or more limited partners. The limited
partners as such shall not be bound by the
obligations of the partnership. [Article 1843]
Proper party
CHARACTERISTICS
(1) A limited partnership is formed by compliance
with the statutory requirements [Article 1844].
(2) The business is controlled or managed by one or
more general partners, who are personally liable
to creditors [Articles 1848 and 1850].
(3) One or more limited partners contribute to the
capital and share in the profits but do not
manage the business and are not personally
liable for partnership obligations beyond their
capital contributions [Articles 1845, 1848 and
1856].
(4) Obligations or debts are paid out of the
partnership assets and the individual property of
the general partners.
(5) The limited partners may have their contributions
back subject to conditions prescribed by law
[Articles 1844 and 1957].
Not prohibited
Assignability of interest
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General Partner
Limited Partner
Not assignable
Assignable
Limited Partnership
Creation
PURPOSE OF FILING
NO SUBSTANTIAL COMPLIANCE
Composition
Only general partners
Firm name
Must contain the word
Must include the word
"Company" (SEC Memo "Limited" (SEC Memo Circ
Circ No. 14-00), except for No. 14-00)
professional partnerships
FIRM NAME
Articles 1860-1863
Requisites:
(1) The partner knew the statement to be false at the
time he signed the certificate, or subsequently,
but having sufficient time to cancel or amend it,
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Contract of agency
DEFINITION
By the contract of agency, a person binds himself to
render some service or to do something in
representation or on behalf of another, with the
consent or authority of the latter [Article 1868].
AMENDMENT OR CANCELLATION OF
CERTIFICATE
WHEN CERTIFICATE IS CANCELLED
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INTENTION OF PARTIES
CHARACTERISTICS
The contract of agency is:
(1) Consensual, perfected by mere consent;
(2) Nominate, has its own name;
(3) Preparatory, entered into as a means to enter into
other contracts;
(4) Principal, does not depend on another contract
for existence and validity;
(5) Bilateral, if for compensation, giving rise to
reciprocal rights and obligations, but unilateral, if
gratuitous, creating obligations only for the
agent.
CONSTITUTION OF AGENCY
Exceptions:
(1) Agency by estoppel; and
(2) Agency by operation of law.
CONSENT OF PARTIES
ESSENTIAL ELEMENTS
PARTIES
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PRESUMPTION OF EXISTENCE
FORM OF CONTRACT
EFFECT
EXTENSION OF PERSONALITY
ACTS DELEGATED
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Agency
Independent Contractor
Control
Exceptions:
(1) Where the agent's interests are adverse to those
of the principal;
(2) Where the agent's duty is not to disclose the
information (e.g., he is informed by way of
confidential information);
(3) Where the person claiming the benefit of the rule
colludes with the agent to defraud the principal.
Partnership
Representation
Agency
Lease of Service
Basis
Representation
Control
Employment
Purpose
Personal liability
Authorized acts
A partner is personally
liable with all his property,
after exhaustion of the
partnership properties
Share in profits
Discretion
Agency
Lease of Property
Control
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Agency
Lease of Property
Agency
Things involved
Person represented
An agent represents a
capacitated person
Binding power
An agent can bind the
principal
Guardianship
A guardian represents an
incapacitated person
Source of authority
Agency to Sell
Sale
Ownership of goods
Principal retains
ownership
Binding power
Payment
An agent delivers the
A buyer pays the purchase
proceeds of the sale to the price
principal
Agency
Return of goods
Generally, an agent can
return goods unsold
Agency to Buy
Trust
Termination
In general, an agency may In general, a trust may be
be revoked at any time
terminated only when its
purpose is fulfilled
Sale
Ownership of goods
Ownership is acquired in Ownership is transferred
behalf of the principal
to the buyer
Kinds of agency
Changes in price
(1) Express;
(2) Implied.
Payment
Price is paid in behalf of
the principal
AS TO CAUSE OR CONSIDERATION
(1) Gratuitous; or
(2) Compensated or onerous.
Agency is presumed to be for a compensation, unless
there is proof to the contrary [Article 1875].
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GENERAL AGENCY
(1) Universal;
(2) General; or
(3) Special.
AS TO AUTHORITY CONFERRED
General Agency
Special Agency
Scope of authority
All acts connected with
the business or
employment in which
agent is engaged
AS TO KINDS OF PRINCIPAL
Involves continuous
service
Construction of instructions
Notice to third persons
required
IMPLIED AGENCY
UNIVERSAL AGENCY
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Notes:
(1) The requirement of special power of attorney in
Article 1878 refers to the nature of the
authorization, not to its form. Even if a document
is titled as a general power of attorney, the
requirement of a special power of attorney is met
if there is a clear mandate from the principal
specifically authorizing the performance of the
act [Bravo-Guerrero v. Bravo (2005)].
(2) A special power of attorney can be included in the
general power when it is specified therein the act
or transaction for which the special power is
required [Veloso v. CA (1996)].
Estoppel
Rests on intention
Rests on prejudice
Retroacts as if originally
authorized
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Agency by Estoppel
Person who is in bad faith
is liable
IRREVOCABLE AGENCY
Qualifications:
(1) Coupled with interest or not, the authority
certainly can be revoked for a just cause, such as
when the attorney-in-fact betrays the interest of
the principal, xxx. It is not open to serious doubt
that the irrevocability of the power of attorney
may not be used to shield the perpetration of acts
in bad faith, breach of confidence, or betrayal of
trust, by the agent for that would amount to
holding that a power coupled with an interest
authorizes the agent to commit frauds against
the principal. [Coleongco v. Claparols (1964)]
KINDS OF AGENTS
AS TO NATURE AND EXTENT OF AUTHORITY
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AUTHORITY OF AN AGENT
Authority is the power of the agent to affect the legal
relations of his principal by acts done in accordance
with the principals manifestations of consent.
An agent can make the principal legally responsible
only when he is authorized by the principal to act the
way he did.
KINDS OF AUTHORITY
(1) Actual, when it is actually granted, and it may be
express or implied. It is the authority that the
agent does, in fact, have. It results from what the
principal indicates to the agent;
(2) Express, when it is directly conferred by words;
(3) Implied, when it is incidental to the transaction or
reasonably necessary to accomplish the main
purpose of the agency;
(4) Apparent or ostensible, when it arises by the acts
or conduct of the principal giving rise to an
appearance of authority. It makes the principal
responsible to third persons for certain actions of
the agent that were not really authorized;
(5) General, when it refers to all the business of the
principal;
(6) Special, when it is limited only to one or more
specific transactions; and
(7) By necessity or by operation of law, when it is
demanded by necessity or by virtue of the
existence of an emergency. The agency
terminates when the emergency passes.
SCOPE OF AUTHORITY
General rule: The scope of the authority of the agent
is what appears in the terms of the power of attorney
[Siredy Enterprises v. CA (2002)].
Exceptions: An agent is considered acting within the
scope of his authority when:
(1) He performs acts which are conducive to the
accomplishment of the purpose of the agency
[Article 1881];
(2) He performed the agency in a manner more
advantageous to the principal than that specified
by said principal [Article 1881];
(3) The principal ratifies the act, expressly or tacitly
[Article 1910].
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OBLIGATIONS, IN GENERAL
GOOD FAITH AND LOYALTY TO HIS TRUST
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Authority
Instructions
APPLICATION
Instructions
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WHAT TO DELIVER
POWER TO APPOINT
Exceptions:
(1) The appointment is prohibited by the principal
[Article 1892];
(2) The work entrusted to the agent requires special
knowledge, skill, or competence, unless
authorized to do so by the principal [De Leon
(2010)].
EFFECTS OF SUBSTITUTION
SUB-AGENCY
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RATIFICATION BY PRINCIPAL
VOID CONTRACTS
IGNORANCE OF AGENT
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Commission Agent
Acts in his own name or
that of his principal
Broker
Commission Agent
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RATIFICATION
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AMOUNT OF COMPENSATION
COMPENSATION OF BROKER
DAMAGES
MULTIPLE PRINCIPALS
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Extinguishment of agency
MODES OF EXTINGUISHING AGENCY, IN
GENERAL
Agency is extinguished:
(1) By its revocation;
(2) By the withdrawal of the agent;
(3) By the death, civil interdiction, insanity or
insolvency of the principal or of the agent;
(4) By the dissolution of the firm or corporation which
entrusted or accepted the agency;
(5) By the accomplishment of the object or purpose
of the agency;
(6) By the expiration of the period for which the
agency was constituted. [Article 1919]
MULTIPLE PRINCIPALS
REVOCATION BY PRINCIPAL
General rule: The principal may:
(1) Revoke the agency at will; and
(2) Compel the agent to return the document
evidencing the agency.
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WITHDRAWAL BY AGENT
The agent may withdraw from the agency by giving
due notice to the principal.
EXPIRATION OF TERM
If created for fixed period, expiration of the period
extinguishes agency even if the purpose was not
accomplished.
Exceptions:
(1) The agency remains in full force and effect even
after the death of the principal, if it has been
constituted:
(a) In the common interest of the principal and
agent; or
(b) In the interest of a third person who has
accepted the stipulation in his favor. [Article
1930]
(2) Anything done by the agent, without knowledge
of the death of the principal or of any other cause
which extinguishes the agency, is valid and shall
be fully effective with respect to third persons
who may have contracted with him in good faith
[Article 1931].
(3) The agent must finish business already begun on
the death of the principal, should delay entail any
danger [Article 1884].
DEATH OF AGENT
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CREDIT TRANSACTIONS
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CREDIT TRANSACTIONS
Credit Transactions
Loan
[A] contract by which one of the parties delivers to
another, either something not consumable so that
the latter may use the same for a certain time and
return it, in which case the contract is called
commodatum; or money or other consumable thing,
upon the condition that the same amount of the
same kind and quality shall be paid, in which case
the contract is called a simple loan or mutuum.
[Art.1933]
CHARACTERISTICS OF A LOAN
(1) Real contract
(a) Delivery is essential for perfection of the
contract of loan.
(b) An accepted promise to loan, is nevertheless
binding on the parties, it being a consensual
contract.
COMMODATUM V. MUTUUM
Commodatum
Mutuum
Ordinarily involves
something not
consumable* (Art.1936)
Ownership is transferred to
the borrower
May be gratuitous or
onerous, i.e. with stipulated
interest
Borrower need only pay an
equal amount of the same
kind and quality (Art. 1953)
Refers only to personal
property
Loan for consumption
Lender may not demand its
return before the lapse of
the term agreed upon
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CREDIT TRANSACTIONS
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CREDIT TRANSACTIONS
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CREDIT TRANSACTIONS
OBLIGATIONS OF DEPOSITOR
(1) Depositor is obliged to reimburse the depositary
for expenses incurred for preservation if deposit
is gratuitous. [Art. 1992]
(2) Depositor is obliged to pay losses incurred due to
character of thing deposited. [Art. 1993]
ELEMENTS OF USURY
Exceptions
(1) Depositor was not aware of the danger;
(2) Depositor was not expected to know the
dangerous character of the thing;
(3) Depositor notified the depositary of such
dangerous character;
(4) Depositary was aware of the danger without
advice from the depositor.
Deposit
Deposit is constituted from the moment a person
receives a thing belonging to another, with the
obligation of safely keeping it and of returning the
same. If the safekeeping of the thing delivered is not
the principal purpose of the contract, there is no
deposit but some other contract. [Art.1962]
EXTINGUISHMENT OF DEPOSIT
A DEPOSIT IS EXTINGUISHED:
(1) Upon the loss or deterioration of the thing
deposited;
(2) Upon the death of either the depositor or the
depositary, ONLY in gratuitous deposits;
(3) By other modes provided in the Civil Code, e.g.
novation, merger, etc. [See Art. 1231]
CHARACTERISTICS
(1) Real Contract because it is perfected by the
delivery of the subject matter.
(2) Principal purpose of the contract of deposit is the
safekeeping of the thing delivered.
(3) If gratuitous, it is unilateral because only the
depository has an obligation. If onerous, it is
bilateral.
KINDS OF DEPOSIT
(1) Judicial
(2) Extrajudicial
(a) Voluntary
(b) Necessary
VOLUNTARY DEPOSIT
Voluntary Deposit - 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 [Art.
1968]
NECESSARY DEPOSIT
Necessary Deposit - made in compliance with a legal
obligation, or on the occasion of any calamity, or by
travelers in hotels and inns [Arts. 1996-2004] or by
travelers with common carriers [Arts. 1734-1735]
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CREDIT TRANSACTIONS
JUDICIAL DEPOSIT
Judicial Deposit takes place when an attachment or
seizure of property in litigation is ordered [Arts.
2005-2009]
APPLICABLE LAW
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CREDIT TRANSACTIONS
Suretyship
Guarantors
liability
depends
upon
an
independent agreement
to pay the obligation
Guarantors engagement
is
a
collateral
undertaking
Guarantor is subsidiarily
liable i.e. only obliged to
pay if the principal
cannot pay
Guarantor not bound to
take notice of default of
his principal
Guarantor
often
discharged by the mere
indulgence
of
the
creditor and is usually
not liable unless notified
of the principals default
Exceptions
(a) With her husbands consent, bind the
community or conjugal partnership property
(b) Without husbands consent, in cases provided
by law, such as when the guaranty has
redounded to the benefit of the family.
(4) A guaranty need not be undertaken with the
knowledge of the debtor [2050]
(a) Guaranty is unilateral exists for the benefit
of the creditor and not for the benefit of the
principal debtor
(b) Creditor has every right to take all possible
measures to secure payment of his credit
guaranty can be constituted even against the
will of the principal debtor
Surety is an original
promissory
Surety is primarily liable
i.e. bound to pay if the
principal does not pay
Surety ordinarily held to
know every default of his
principal
Surety not discharged
either by the mere
indulgence
of
the
creditor or by want of
notice of default of the
principal
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CREDIT TRANSACTIONS
Rationale:
(a) There be assurance that the guarantor had
the true intention to bind himself;
(b) To make certain that on making it, the
guarantor proceeded with consciousness of
what he was doing.
Strictissimi
juris
rule
applicable
only
to
accommodation surety
Reason: An accommodation surety acts without
motive of pecuniary gain and hence, should be
protected against unjust pecuniary impoverishment
by imposing on the principal, duties akin to those of
a fiduciary. This rule will apply only after it has been
definitely ascertained that the contract is one of
suretyship or guaranty.
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adequate
counter-bonds
agreements.
CREDIT TRANSACTIONS
or
indemnity
EFFECT OF GUARANTY
EFFECTS OF GUARANTY BETWEEN THE GUARANTOR AND
THE CREDITOR
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CREDIT TRANSACTIONS
(3) The creditor has the duty to make prior demand for
payment from the guarantor 2060)
(a) The demand is to be made only after
judgment on the debt
(b) Joining the guarantor in the suit against the
principal debtor is not the demand intended
by law. Actual demand has to be made.
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CREDIT TRANSACTIONS
or
subsequent
EXTINGUISHMENT OF GUARANTY
(1) Once the obligation of the debtor is extinguished
in any manner provided in the Civil Code, the
obligation of the guarantor is also extinguished
[2076]. However, there may be instances when,
after the extinguishment of the guarantors
obligation (as in the case of a release from the
guaranty), the obligation of the debtor still
subsists.
(2) Although the guarantor generally has to make
payment in money, any other thing of value, if
accepted by the creditor, is valid payment and
therefore releases the guarantor [dacion en pago]
[2077].
(3) If one guarantor is released without the consent
of the others, the release would benefit the coguarantors to the extent of the proportionate
share of the guarantor released [2078].
(4) A guarantor is released if the creditor, without the
guarantors consent, extends the time within
which the debtor may perform his obligation
[2079]. This is to protect the interest of the
guarantor should the debtor be insolvent during
the period of extension and deprive the guarantor
of his right to reimbursement.
(5) The guarantors are released if by some act of the
creditor they cannot be subrogated to the rights,
mortgages and preferences of the latter. [2080]
[2082 IN
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CREDIT TRANSACTIONS
KINDS
(1) Voluntary or conventional Created by agreement
of parties.
(2) Legal Created by operation of law.
Pledge
ESSENTIAL REQUIREMENTS
ESSENTIAL REQUISITES COMMON TO PLEDGE AND
MORTGAGE [ART. 2085]
DEFINITION
Pledge is a contract by virtue of which the debtor
delivers to the creditor or to a third person a movable
or document evidencing incorporeal rights for the
purpose of securing the 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. [Art.2085
in relation to 2093]
OBLIGATION OF PLEDGEE
(1) The pledgee cannot deposit the thing pledged
with a 3rd person, unless there is a contrary
stipulation [2100].
(2) Is responsible for the acts of his agents or
employees with respect to the thing pledged
[2100].
(3) Has no right to use the thing or to appropriate its
fruits without authority from the owner [2104]
(4) May cause the public sale of the thing pledged if,
without fault on his part, there is danger of
destruction, impairment or dimunition in value of
the thing. The proceeds of the auction shall be a
security for the principal obligation [2108].
RIGHTS OF PLEDGOR
(1) Takes responsibility for the flaws of the thing
pledged [2101 in relation to Art. 1951].
(2) Cannot ask for the return of the thing against the
will of the creditor, unless and until he has paid
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CREDIT TRANSACTIONS
2122
[Art.
2121]
(1) Necessary expenses shall be refunded to every
possessor, but only a possessor in good faith may
retain the thing until he has been reimbursed.
(a) 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 and by reason thereof [Art. 546]
(2) He who has executed work upon a movable has a
right to retain it by way of pledge until he is paid.
This is called the mechanics lien. [Art. 1731]
(3) The agent may retain the things which are the
objects of agency until the principal effects the
reimbursement and pays the indemnity. This is
called the agents lien. [Art. 1914]
(4) The laborers wages shall be a lien on the goods
manufactured or the work done. [Art. 1707]
Note:
(1) In legal pledges, the remainder of the price of the
sale shall be delivered to the obligor.
(2) Public auction of legal pledges may only be
executed after demand of the amount for which
the thing is retained. It shall take place within one
month after the demand, otherwise the pledgor
may demand the return of the thing pledged,
provided s/he is able to show that the creditor did
not cause the public sale without justifiable
grounds. [Article 2122]
Pledge
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CREDIT TRANSACTIONS
Chattel Mortgager
Pledge
Creditor/ mortgagee is
not entitled to recover any
deficiency
after
the
property
is
sold,
notwithstanding contrary
stipulation
Real Mortgage
(1) Immovables
(2) Alienable real rights over immovables.
(a) Future property cannot be an object of
mortgage; however, a stipulation subjecting to
the mortgage improvements which the
mortgagor may subsequently acquire, install
or use in connection with real property already
mortgaged belonging to the mortgagor is
valid.
CHARACTERISTICS
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CREDIT TRANSACTIONS
as a security.
FORECLOSURE
FORECLOSURE OF MORTGAGE
KINDS OF FORECLOSURE
ESSENTIAL REQUISITES
ESSENTIAL REQUISITES COMMON TO PLEDGE AND
MORTGAGE
obligation.
(2) Pledgor or mortgagor must be the absolute
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CREDIT TRANSACTIONS
Note:
(a) Both should be distinguished from execution sale
governed by Rule 39, ROC.
(b) Foreclosure retroacts to the date of registration of
mortgage.
(c) A stipulation of upset price, or the minimum price
at which the property shall be sold to become
operative in the event of a foreclosure sale at
public auction, is null and void.
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CREDIT TRANSACTIONS
Antichresis
CHARACTERISTICS
Redemption
(1) It is a transaction by which the mortgagor
reacquires the property which may have passed
under the mortgage or divests the property of the
lien which the mortgage may have created
(2) Kinds:
(a) Equity of redemption: in judicial foreclosure of
real estate mortgage under the ROC, it is the
right of the mortgagor to redeem the
mortgaged property by paying the secured
debt within the 120 day period from entry of
judgment or after the foreclosure sale, but
before the sale of the mortgaged property or
confirmation of sale
(i) formal offer to redeem preserves the right of
redemption, e.g., by filing an action to
enforce the right to redeem
(b) Right of redemption: in extrajudicial
foreclosure of real estate mortgage, the right
of the mortgagor to redeem the property
within a certain period after it was sold for the
satisfaction of the debt.
(ii) For natural persons one year from the
registration of the TCT
(iii) For juridical persons three months from
the foreclosure
(iv) Formal offer to redeem must be with
tender of redemption price to preserve
right of redemption
SPECIAL REQUISITES:
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CREDIT TRANSACTIONS
Chattel Mortgage
DEFINITION AND CHARACTERISTICS
Chattel Mortgage is a conditional sale of personal
property as security for the payment of a debt, or the
performance of some other obligation specified
therein, the condition being that the sale shall be
void upon the seller paying to the purchaser a sum of
money or doing some other act named. If the
condition is performed according to its terms, the
mortgage and sale immediately become void, and
the mortgagee is thereby divested of his title.
[Section 3, Act 1508]
CHARACTERISTICS
REGISTRATION
PERIOD WITHIN WHICH REGISTRATION SHOULD BE MADE
FORMAL REQUISITES
(a) It should substantially comply with the form
prescribed by law
(b) It should be signed by the person/s executing the
same in the presence of two witnesses who shall
sign the mortgage as witnesses to the execution
thereof and
EFFECT OF REGISTRATION
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CREDIT TRANSACTIONS
DESCRIPTION OF PROPERTY
DISPOSITION OF PROCEEDS
The proceeds of the sale shall be applied to the
payment:
(1) first, to the costs and expenses of mortgage
(2) the residue shall be paid to persons holding
subsequent mortgages in their order
(3) the balance, after paying the mortgages, shall be
paid to the mortgagor or person holding under
him on demand
Breaches
Failure of mortgagee to discharge the mortgage
If the mortgagee, assign, administrator, executor, or
either of them,
(1) after performance of the condition before or after
the breach thereof, or
(2) after tender of the performance of the condition,
at or after the time fixed for the performance,
Quasi-Contracts
A quasi-contract is that juridical relation resulting
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CREDIT TRANSACTIONS
NEGOTIORUM GESTIO
(UNAUTHORIZED MANAGEMENT)
This takes place when a person voluntarily takes
charge of anothers abandoned business or property
without the owners authority [Art. 2144].
Reimbursement must be made to the gestor (i.e. one
who carried out the business) for necessary and
useful expenses, as a rule.
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CREDIT TRANSACTIONS
OTHER QUASI-CONTRACTS
(1) When, without the knowledge of the person
obliged to give support, it is given by a stranger,
the latter shall have a right to claim the same
from the former, unless it appears that he gave it
out of piety and without intention of being repaid.
[Art. 2164]
(2) When funeral expenses are borne by a third
person, without the knowledge of those relatives
who were obliged to give support to the
deceased, said relatives shall reimburse the third
person, should the latter claim reimbursement.
[Art. 2165]
(3) When the person obliged to support an orphan,
or an insane or other indigent person unjustly
refuses to give support to the latter, any third
person may furnish support to the needy
individual, with right of reimbursement from the
person obliged to give support. The provisions of
this article apply when the father or mother of a
child under eighteen years of age unjustly refuses
to support him. [Art. 2166]
(4) When through an accident or other cause a
person is injured or becomes seriously ill, and he
is treated or helped while he is not in a condition
to give consent to a contract, he shall be liable to
pay for the services of the physician or other
person aiding him, unless the service has been
rendered out of pure generosity. [Art. 2167]
(5) When during a fire, flood, storm, or other
calamity, property is saved from destruction by
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CREDIT TRANSACTIONS
(12) Credits for rent for one year, upon the personal
property of the lessee existing on the immovable
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CREDIT TRANSACTIONS
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
x.
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CREDIT TRANSACTIONS
xi.
xii.
xiii.
xiv.
EXEMPT PROPERTY
(1) Present property:
(a) Family home. [Arts. 152, 153 and 155, CC]
(b) Right to receive support, as well as money or
property obtained by such support, shall not
be levied upon on attachment or execution.
[Art. 205, CC]
(c) Sec. 13, Rule 39, ROC.
(d) Sec 118, Public Land Act. [CA 141, as
amended]
(2) Future property:
A debtor who obtains a discharge from his debts
on account of insolvency, is not liable for the
unsatisfied claims of his creditors with said
property. [Sec. 68 and 69, Insolvency Law, Act
1956]
(3) Property in custodia legis and of public dominion.
CLASSIFICATION OF CREDITS
(1) Special preferred credits. [Art. 2241 and 2242, CC]
(a) Considered as mortgages or pledges of real or
personal property or liens within the purview
of legal provisions governing insolvency.
(b) Taxes due to the State shall first be satisfied.
(2) Ordinary preferred credits [Art. 2244] Preferred
in the order given by law.
(3) Common credits [Art. 2245] Credits of any other
kind or class, or by any other right or title not
comprised in Arts. 2241- 2244 shall enjoy no
preference.
ORDER OF PREFERENCE OF CREDITS
(1) 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 [Art. 2246].
(2) If there are 2 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
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Torrens System
CERTIFICATE OF TITLE
ORIGINAL CERTIFICATE OF TITLE OR OCT
PURPOSE:
PATENTS
ADVANTAGES:
BACKGROUND:
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Note:
(a) Patents only involve public lands which are
alienated by the Government, pursuant to the
Public Land Act.
(b) The patent (even if denominated as deed of
conveyance) is not really a conveyance but a
contract between the grantee and the
Government and evidence of authority to the
Register of Deeds to make registration.
(c) The act of registration is the operative act to affect
and convey the land.
Regalian Doctrine
Citizenship Doctrine
KRIVENKO DOCTRINE
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Exceptions:
(a) Aliens by way of hereditary succession
(b) Natural born citizens who have lost their
citizenship- limited to 5,000 sq. m. for urban
land and 3 hectares for rural land (RA No. 7042
as amended by RA No. 8179)
Aliens, although disqualified to acquire lands of
public domain, may lease private land for a
reasonable period provided, that such lease does not
amount to a virtual transfer of ownership. They may
also be given an option to buy property on the
condition that he is granted Philippine citizenship.
(Llantino v Co liong Chong, GR No. 29663)
Original Registration
WHO MAY APPLY
under pd 1529
The following persons may file an application for
registration of title to land:
(1) Those who by themselves or through their
predecessors-in-interest have been in open,
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(d)
(e)
(f)
(g)
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Survey
Application
Initial Hearing
Publication
Opposition
Hearing
Judgment
Issuance of Decree
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INITIAL HEARING
APPLICATION
PUBLICATION
By publication
The Commissioner of Land Registration shall cause
it to be published: once in the Official Gazette
(sufficient to confer jurisdiction) and once in a
newspaper of general circulation in the Philippines
It shall contain:
(a) a description of the land
(b) citizenship and civil status of the applicant
(c) if married, the name of the wife or husband
(d) if the marriage has been legally dissolved, when and
how
(e) full names and addresses of all occupants and
those of the adjoining owners, if known
(f) if not known, it shall state the extent of the search
made to find them. (Sec. 15, PD 1529)
By posting
CLR shall cause the sheriff or his deputy to post the
notice at least 14 days before the hearing: in a
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Forms of Judgment
Writ of possession
Vencilao vs. Vano, (1990): The writ may be issued not
only against the person defeated in the registration
case but also against any one adversely occupying
the land during the proceedings.
Bernas vs. Nuevo, (1984): The writ does not lie against
a person who entered the land after the issuance of
the decree and who was not a party in the case. He
can only be proceeded against in a separate action
for ejectment or reinvindicatory action.
OPPOSITION
Writ of demolition
Gawaran vs. IAC, (1988): This writ is a complement of
the writ of possession.
ISSUANCE OF DECREE
HEARING
REMEDIES
Proof of ownership
Municipality of Santiago vs. CA (1983): Tax
declaration and receipts are not conclusive but have
strong probative value when accompanied by proof
of actual possession.
PROHIBITIONS:
JUDGMENT
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or
other
IMPRESCRIPTIBLE
PD 1529, Sec 47. Registered land not subject to
prescriptions. No title to registered land in derogation
of the title of the registered owner shall be acquired
by prescription or adverse possession.
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Action for
Reconveyance
Damages
Action for
Compensation
from the
1
Assurance Fund
Annulment
Judgment
of
Reversion
Criminal Action
General Rule
No title or right to, or equity in, any lands of the
public domain may be acquired by prescription or by
adverse possession or occupancy except as expressly
provided by law. (CA 141, Sec 57) The Public Land
Act recognizes the concept of ownership under the
civil law. This ownership is based on adverse
possession and the right of acquisition is governed
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CADASTRAL REGISTRATION
Unlike other kinds of registration, this is compulsory
as it is initiated by the government.
Requisites
(a) Filipino citizen
(b) He must have, by himself, or thru his
predecessors in - interest, possessed and
occupied an alienable and disposable
agricultural portion of the public domain
(c) Such possession and occupation must have
been OCEN and in the concept of owner since
June 12, 1945
(d) Application filed with proper court
Private corporations
Where at the time the corporation acquired the land,
its predecessor-in-interest had been in possession
and occupation thereof in the manner and for the
period prescribed by law as to entitle him to
registration in his name, then the proscription
against corporation acquiring alienable lands of the
public domain does not apply for the land was no
longer public land but private property. Since the
land is private, the corporation can institute
confirmation proceedings. (Director of Lands vs. IAC
and Acme Plywood and Veneer Co., 1986)
NOTE:
(a) MAXIMUM LAND THAT CAN BE APPLIED FOR:
144 hectares
(b) In case of foreigner, it sufficient that he is already
Filipino citizen at the time of his application.
(c) Corporation which has less than 60% Filipino
ownership cannot apply confirmation of imperfect
title; can only lease
(d) PERSONS COMPETENT TO QUESTION LAND
GRANT: Persons who obtained title from State or
thru persons who obtained title from State.
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Subsequent Registration
TWO TYPES OF DEALINGS
VOLUNTARY DEALINGS
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Voluntary Dealings
deed of sale and the
same is entered in the
day book and at the
same
time
he
surrenders or presents
the owners duplicate
certificate of title
covering the land sold
and
pays
the
registration fees.
Villasor vs. Camon,
(1951): It is necessary to
register the deed or
instrument in the entry
book
and
a
memorandum thereof
shall also be made in
the owners duplicate
certificate and its
original
Spouses Labayen vs.
Leonardo
Serafica,
(2008, Nachura): At
the time of the filing of
the
petition
for
cancellation
of
encumbrance,
the
lease contract already
lost its efficacy. Thus,
there is no basis to
save its annotation on
defendants title. The
fact
that
the
cancellation of the
lease contract was
forged is of no
moment, for there was
no violation of a right.
Involuntary Dealings
Attachment,
injunction,
mandamus,
levy
on
execution, notice of lis
pendens
Entry in the day book is
sufficient notice to all
persons
Presentation of the
owners
duplicate
certificate of title is
required to notify;
mere entry insufficient
An innocent purchaser
for value of registered
land becomes the
registered owner the
moment he presents
and files a duly
notarized and valid
Involuntary Dealings
General Rule:
(a) Campillo vs. PNB, 1969: A person dealing with
registered property need not go beyond, but only has
to rely on, the title.
(b) He is charged with notice only of such burdens and
claims which are annotated on the title, for
registration is the operative act that binds the
property.
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VOLUNTARY DEALINGS
REGISTRATION OF VOLUNTARY INSTRUMENTS IN GENERAL
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Note:
(a) If the grantee is a corporation or association, it
must show that it is qualified to acquire private
lands.
(b) PNB vs. Fernandez (1935): The issuance of a new
transfer certificate without presentation of an
owners duplicate is unwarranted and confers no
right on the purchaser
(c) RA 456 prohibits registration of documents
affecting real property which is delinquent in the
payment of real estate taxes. Further, if evidence
of such payment is not presented with 15 days
from the date of entry of said document in the
primary entry book of the register of deeds the
entry shall be deemed cancelled.
(d) Pay fees and DST (government is exempt)
(e) The instruments are regarded as registered from
the time ROD enters them in his book.
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Kinds
(a) Preliminary
(b) Garnishment
(c) Levy on execution
Registration of attachment/other liens
(a) Copy of writ in order to preserve any lien, right or
attachment upon registered land shall be filed
with the Register of Deeds where the land lies,
containing number of certificate of title of land to
be affected or description of land (PD 1529, Sec
69)
(b) Register of Deeds to index attachment in names
of both plaintiff & defendant or name of person
whom property is held or in whose name stands
in the records
(c) If duplicate of certificate of title is not presented:
(1) Register of Deeds shall within 36 hours send
notice to registered owner by mail stating that
there has been registration & requesting him
to produce duplicate so that memorandum be
made
(2) If owner neglects or refuses Register of
Deeds shall report matter to court.
(3) Court after notice shall enter an order to
owner to surrender certificate at time & place
to be named therein.
(d) Although notice of attachment is not noted in
duplicate, notation in book of entry of Register of
Deeds produces effect of registration already
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Execution sale
(a) To enforce a lien of any description on registered
land, any execution or affidavit to enforce such
lien shall be filed with Register of Deeds where
the land lies
(b) Register in the registration book & memorandum
upon proper certificate of title as adverse claim or
as an encumbrance
(c) To determine preferential rights between 2 liens:
priority of registration of attachment
Tax sale
(a) Sale of land for collection of delinquent taxes and
penalties due the Government
(b) In personam (all persons interested shall be
notified so that they are given opportunity to be
heard)
(c) Notice to be given to delinquent tax payer at last
known address
(d) Publication of notice must also be made in
English, Spanish & local dialect & posted in a
public & conspicuous place in place wherein
property is situated & at the main entrance of the
provincial building
(e) Sale cannot affect rights of other lien holders
unless they are given the right to defend their
rights: due process must be strictly observed
(f) Tax lien superior to attachment
(g) No need to register tax lien because it is
automatically registered once the tax accrues
(h) But sale of registered land to foreclose a tax lien
need to be registered.
Purpose
To keep the subject matter within the power of the
court until the entry of final judgment. It therefore
creates merely a contingency & not a lien.
Effect of registration
(a) Impossibility of alienating the property in dispute
during the pendency of the suit may be
alienated but purchaser is subject to final
outcome of pending suit
(b) Register of Deeds is duty bound to carry over
notice of lis pendens on all new titles to be issued
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ADVERSE CLAIM
Requisites
The adverse claimant must give a statement, signed
and sworn before a notary public, of the following in
writing:
(a) his alleged right or interest
(b) how and under whom such alleged right or
interest is acquired
(c) the description of the land in which the right or
interest is claimed and
(d) the number of the certificate of title
(e) his residence or the place to which all notices may
be served upon him.
Non-registrable Properties
NON-REGISTRABLE LANDS
1987 Constitution, Art. XII, Sec. 2
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 other natural resources are owned by the State. xxx
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Dealings with
Unregistered Lands
Key points
(1) The system of registration for unregistered land is
under the Torrens system.
(2) Before: covers voluntary dealings, now includes
involuntary dealings
(3) Effect if prospective; binds 3rd persons after
registration but yields to better rights of 3rd
person prior to registration (limited effect to 3rd
parties) reason: no strict investigation involved
(4) Subsequent dealings also valid if recorded
(5) Register of deeds keeps day book & a register;
index system is also kept
Procedure
(1) Presentment of instrument dealing in
unregistered land
(2) If found in order registered
(3) If found defective registration is refused writing
his reason for refusal
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Principles of Torts
ABUSE OF RIGHT
Art. 19. 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.
ELEMENTS:
ELEMENTS:
EXAMPLES:
BREACH OF PROMISE TO MARRY, SEDUCTION AND SEXUAL
ASSAULT
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MALICIOUS PROSECUTION
ELEMENTS:
PUBLIC HUMILIATION
UNJUSTIFIED DISMISSAL
Requisites:
(1) That the defendant has been enriched;
(2) That the plaintiff has suffered a loss;
(3) That the enrichment of the defendant is without
just or legal ground; and
(4) That the plaintiff has no other action based on
contract, crime or quasi-delict
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The Tortfeasor
BASIS OF LIABILITY
SCOPE OF LIABILITY
Classification of Torts
ACCORDING TO SCOPE
GENERAL
Respondeat
superior
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(1) School
(2) Administrators
(3) Teachers
(4) Individual, entity, or institution engaged in
child care
BASIS OF LIABILITY
MEANING OF MINORITY
NATURE OF LIABILITY
ADOPTED CHILDREN
ILLEGITIMATE CHILDREN
Exconde vs. Capuno (1957): The civil liability which the law
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GUARDIANS
LIABILITY OF GUARDIANS
Teacher-incharge
(the
one
designated to
exercise
supervision
over students)
Head
of
establishment
PAGE 328
Requisite for
Liability to
Attach
and Pupils
and
students
remain
in
teachers
custody
regardless of
the age
Custody
regardless of
Apprentices
UP COLLEGE OF LAW
(generally not
held liable)
Requisite for
Liability to
Attach
the age
be
For whose
acts
Owners
and Their
managers of an employees
establishment
or enterprise
Who are liable
Requisites for
liability to attach
The damage was
caused in the
service of the
branches in which
the employees are
employed
-ORThe damage was
caused on the
occasion of their
functions
MEANING OF EMPLOYER:
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Basis of liability
Employers negligence in
(1) The selection of their employees (culpa in
eligiendo)
(2) The supervision over their employees (culpa in
vigilando)
INDEPENDENT CONTRACTOR
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th
5th paragraph
Employers
in
general,
whether or not
engaged
in
business
or
industry
Covered acts
Negligent acts
of
employees
acting
within
the scope of
their assigned
task
Negligent acts of
employees
committed either in
the service of the
branches or on the
occasion of their
functions
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THE STATE
The State may not be sued without its consent. (Sec
3, Art XVI, 1987 Constitution)
Notes:
(a) As a governmental entity: Liable only for acts of
its special agents
(b) As a corporate entity: May be held liable just as
any other employer for the acts of its employees
(c) Special Agent: One duly empowered by a definite
order or commission to perform some act or one
charged with some definite purpose which give
rise to the claim; if he is a government employee
or official, he must be acting under a definite and
fixed order or commission, foreign to the exercise
of the duties of his office
JOINT TORTFEASORS
The responsibility of two or more persons who are
liable for quasi-delict is solidary. (Art. 2194)
Exceptions:
(1) There is express legislative consent
(2) The State filed the case (because here, it is
deemed to have waived its immunity.)
NATURE OF LIABILITY
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DIFFERENTIATED FROM:
REMOTE CAUSE
Proximate Cause
CONCEPT OF PROXIMATE CAUSE
In order that civil liability for negligence may arise,
there must be a direct causal connection between
the damage suffered by the plaintiff and the act or
omission of the defendant. In other words, the act or
omission of the defendant must be the proximate
cause of the loss or damage of the plaintiff.
INTERVENING CAUSE
DEFINITION
Bataclan v. Medina:
PROXIMATE CAUSE: that cause, which, in natural and
continuous sequence, unbroken by any efficient
intervening cause, produces the injury, and without
which the result would not have occurred.
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CAUSE V. CONDITION
Many courts have sought to distinguish between the
active cause of the harm and the existing
conditions upon which that cause operated. If the
defendant has created only a passive, static
condition which made the damage possible, he is
said not to be liable.
A natural
consequence of an act is the consequence which
ordinarily follows it. A probable consequence is one
that is more likely to follow than fail to follow its
supposed cause but it need not be one which
necessarily follows such cause.
FORESEEABILITY
LEGAL CAUSE
A natural consequence of an act is the consequence
which ordinarily follows it. A probable consequence
is one that is more likely to follow than fail to follow
its supposed cause but it need not be one which
necessarily follows such cause.
HINDSIGHT TEST:
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Note:
(a) If plaintiff is the proximate cause: NO RECOVERY
can be made.
(b) If plaintiff is NOT the proximate cause: Recovery
can be made but such will be mitigated.
(c) If negligence of parties is equal in degree, then
each bears his own loss.)
ELEMENTS:
CONTRIBUTORY NEGLIGENCE
Valenzuela v. CA: Conduct on the part of the injured
party, which contributed as a legal cause to the harm
he has suffered, which falls below the standard to
which he is required to conform for his own
protection.
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CLASSES OF INJURY
INJURY TO PERSONS
INJURY TO PROPERTY
Legal Injury
INJURY TO RELATIONS
Intentional Torts
CONCEPT
Under Article 2176, a person is also held liable for
intentional and malicious acts. The liability is
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TRESPASS TO LAND
Elements
An invasion
(1) which interfered with the right of exclusive
possession of the land, and
(2) which was a direct result of some act committed
by the defendant. (Prosser and Keeton, p. 67)
TRESPASS TO CHATTELS
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VIOLATION OF PRIVACY
Note:
Coverage of Art. 26 is not limited to those
enumerated therein, the enumeration being merely
examples of acts violative of a persons rights to
dignity, personality, privacy and peace of mind. Other
similar acts are also covered within the scope of
the article.
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Invasion of Privacy
Types:
(1) Publication of embarrassing private facts The
interest here is the right to be free from
unwarranted publicity, wrongful publicizing of
private affairs and activities, as these are outside
the ambit of legitimate public concern.
MALICIOUS PROSECUTION
Defamation
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DEFAMATION
UNJUST DISMISSAL
DEFENSES:
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Note:
The foregoing decision thus states that where the
employee does not seek reinstatement or expressly
or impliedly accepts the employers right to
terminate the contract of employment but questions
the manner in which said right was exercised and
predicates thereon his claim for moral and
exemplary damages, the claim is one for tort under
the Civil Code and not one arising from employeremployee relation under the Labor Code even if he
also demands in the action therefor payment of
termination pay which unquestionably derives from
their prior employer-employee relation.
KINDS
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LOSS OF CONSORTIUM
SOCIAL RELATIONS
MEDDLING WITH OR DISTURBING FAMILY RELATIONS
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ECONOMIC RELATIONS
Permissible competition
There is a privilege to interfere with prospects of
advantageous economic relations of others when:
(1) The defendants purpose is justifiable, and
(2) He employs no means which may be regarded as
unfair.
Prohibited competition
In order to qualify as unfair, it must have 2
characteristics:
(1) It must involve an injury to a trade or rival
(2) It must involve acts which are characterized as
contrary to good conscience, or shocking to
judicial sensibilities, or otherwise unlawful
Note:
Jarencio: Unfair competition dealt with in Art. 28 is
different from the unfair competition under Sec. 29
of RA 166. Unfair competition under Sec. 29 of Rep.
Act 166 consists in giving the same general
appearance to the goods manufactured or dealt in or
the services rendered by one person as the goods or
services of another who has already acquired a
public goodwill for such goods or services. Unfair
competition under Art. 28 of the Civil Code refers to
unfair competition in agricultural, commercial or
industrial enterprises or in labor through the use of
force, intimidation, deceit, machination or any other
unjust, oppressive or high- handed method. Unfair
competition under the Civil Code covers a broader
area than Rep. Act 166.
POLITICAL RELATIONS
VIOLATION OF RIGHT TO SUFFRAGE (NCC, ART. 32)
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Negligence
Art. 1173. The fault or negligence of the obligor
consists in the 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. When negligence shows
bad faith, the provisions of Articles 1171 and 2201,
paragraph 2, shall apply.
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.
ELEMENTS
(1) Legal duty
(2) Breach
(3) Causation
(4) Damages
TEST OF NEGLIGENCE
Philippine National Railways vs. Brunty (2006): Did
defendant, in doing the alleged negligent act, use
that reasonable care and caution which an ordinarily
prudent person would have used in the same
situation? If not, the person is guilty of negligence.
The law, in effect, adopts the standard supposed to
be supplied by the imaginary conduct of the discreet
pater familias of the Roman law.
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STANDARD OF CARE
Picart vs. Smith (1918): Test: Did the defendant in
doing the alleged negligent act use that reasonable
care and caution which an ordinarily prudent man
would have used in the same situation? If not, then he
is negligent. Negligence in a given case is not
determined by reference to the personal judgment of
the actor in the situation before him, but is
determined in the light of human experience and the
facts involved in the particular case.
Note:
Only the KIND of injury needs to be foreseen, NOT
the actual specific injury.
STANDARD OF CARE REQUIRED OF BANKS
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EVIDENCE
QUANTUM OF PROOF IN QUASI-DELICT VS. QUANTUM OF
PROOF IN BREACH OF CONTRACT
PRESUMPTION OF NEGLIGENCE
Art. 2184. In motor vehicle mishaps, 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 disputable
presumed that the 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.
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DEFENSES
DUE DILIGENCE
Elements
(1) The accident is such that it would not have
happened in the ordinary course of events
without the negligence of someone;
(2) The
defendant
exercises
control
and
management.
(3) There is no contributory negligence on the part of
the plaintiff.
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Elements
Juntilla vs. Fontanar (1985): The elements of caso
fortuito are:
(1) The cause of the unforeseen and unexpected
occurrence, or of the failure of the debtor to
comply with his obligation, must be independent
of the human will;
(2) It must be impossible to foresee the event or if it
can be foreseen, it must be impossible to avoid;
(3) The occurrence must be such as to render it
impossible for the debtor to fulfill his obligation
in a normal manner; and
(4) The obligor must be free from any participation in
the aggravation of the injury resulting to the
creditor.
AUTHORITY OF LAW
General rule:
One who voluntarily assumed the risk of injury from a
known danger is debarred from recovery. A plaintiff
who, by his conduct, brought himself within the
operation of the maxim, volenti non fit injuria (that
to which a person assents is not presumed in law an
injury), cannot recover on the basis of the
defendants negligence.
Damage
Damages
Illegal
Loss, hurt, harm Recompense
invasion of a resulting
from compensation
legal right
the injury
awarded
or
Requisites
(1) That the plaintiff had actual knowledge of the
danger;
(2) That he understood and appreciated the risk from
the danger
(3) That he voluntarily exposed himself to such risk
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Exception:
Ilocos Norte vs. CA (1989): A person is excused from
the force of the rule (volenti non fit injuria), that
when he voluntarily assents to a known danger he
must abide by the consequences, if an emergency is
found to exist or if the life or property of another is in
peril or when he seeks to rescue his endangered
property.
Prescription periods:
(a) years for QD
(b) 1 year for defamation
Picart vs. Smith (1918): The person who has the last
fair chance to avoid the impending harm and fails to
do so is chargeable with the consequences, without
reference to the prior negligence of the other party.
Bustamante vs. CA (1991): 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.
WAIVER
Art. 1171.
Responsibility arising from fraud is
demandable in all obligations. Any waiver of an
action for future fraud is void.
DOUBLE RECOVERY NCC ART. 2177
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Question
As a result of a collision between a taxicab owned by
A and another taxicab owned by B, X, a passenger of
the first taxicab, was seriously injured. X later filed a
criminal action against both drivers.
Suggested Answer:
It depends. If the separate civil action is to recover
damages arising from the criminal act, reservation is
necessary. If the civil action against the taxicab
owners is based on culpa contractual or on quasidelict, there is no need for reservation.
Alternative Answer:
No such reservation is necessary. Under Section 1
Rule 111 of the 2000 Rules on Criminal Procedure,
what is deemed instituted with the criminal action
is only the action to recover civil liability arising from
the crime or ex delicto. All the other civil actions
under Articles 32, 33, 34, 2176 of the New Civil Code
are no longer deemed instituted, and may be filed
separately and prosecuted independently even
without any reservation in the criminal action
(Section 3, Rule 111, 2000 Rules on Criminal
Procedure). The failure to make a reservation of the
criminal action is not a waiver of the right to file a
separate and independent civil action based on
these articles of the New Civil Code (Casupanan vs.
Laroya, G.R. No. 145391, August 26, 2002)
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PRODUCTS LIABILITY
Art. 2187. Manufacturers and processors of
foodstuffs, drinks, toilet articles and similar goods
shall be liable for death or injuries caused by any
noxious or harmful substances used, although no
contractual relation exists between them and the
consumers.
BURDEN OF PROOF
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If the consumer opts for the alternative under subparagraph (a) of the second paragraph of this Article,
and replacement of the product is not possible, it
may be replaced by another of a different kind, mark
or model: Provided, That any difference in price 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 of this Article.
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NUISANCE
Art. 694. A nuisance is any act, omission,
establishment, business, condition of property, or
anything else which:
(1) Injures or endangers the health or safety of
others; or
(2) Annoys or offends the senses; or
(3) Shocks, defies or disregards decency or morality;
or
(4) Obstructs or interferes with the free passage of
any public highway or street, or any body of
water; or
(5) Hinders or impairs the use of property.
Negligence
Nuisance
Basis
Liability is based on lack Liability
attaches
of proper care and regardless of the skill
diligence
exercised to avoid the
injury
Condition of the Act
Act complained of is There is continuing harm
already done which being suffered by the
caused injury to the aggrieved party by the
plaintiff
maintenance of the act
or
thing
which
constitutes the nuisance
Remedy
Action for damages
Abatement
NUISANCE PER SE
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PUBLIC NUISANCE
PRIVATE NUISANCE
ATTRACTIVE NUISANCE
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Coverage
Applies only to acts of nonfeasance or the
nonperformance of some acts which a person is
obliged or has responsibility to perform.
Nature of liability
(1) Of the police officer Primary
(2) City or municipality - Susidiary
The defense of having observed the diligence of a
good father of a family to prevent the damage is not
available to the city/municipality.
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Note:
If the owner was NOT inside the vehicle, Art. 2180
applies.
Summary:
Owner PRESENT in the
Owner NOT PRESENT in
Vehicle
the Vehicle
Owner is liable if he could Owner may be held
have
prevented
the liable under Art. 2180,
mishap by the exercise of par. 5.
due diligence.
Caedo vs. Yu Khe Tai (1968): Car owners are not held
to a uniform and inflexible standard of diligence as
are professional drivers. In many cases they refrain
from driving their own cars and instead hire other
persons to drive for them precisely because they are
not trained or endowed with sufficient discernment
to know the rules of traffic or to appreciate the
relative dangers posed by the different situations
that are continually encountered on the road. What
would be a negligent omission under aforesaid
Article on the part of a car owner who is in the prime
of age and knows how to handle a motor vehicle is
not necessarily so on the part, say, of an old and
infirm person who is not similarly equipped.
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HEAD OF FAMILY
NUISANCE
Sangco: A person who creates or maintains a
nuisance is liable for the resulting injury to others
regardless of the degree of care or skill exercised to
avoid the injury. The creation or maintenance of a
nuisance is a violation of an absolute duty.
Strict Liability
CLASSES
APPLICABILITY OF PROVISION
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Summary:
Person Strictly
Liable
Possessor of an
animal
or
whoever makes
use of them
even if the
animal is lost or
escaped
Owner of Motor
Vehicle
Manufacturers
and Processors
of
foodstuffs,
drinks,
toilet
articles
and
similar goods
(FDTAS)
Defendant
in
possession of
dangerous
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For What
For the damage
it may cause
Motor
vehicle
mishaps
Death
and
injuries caused
by any noxious
or
harmful
substances used
Death or injury
results
from
such possession
Defenses or
Exceptions
Force majeure
Fault of the
person
who
suffered
damage
Solidary liability
only
if
the
owner was in
the vehicle and
if he could have
prevented
it
thru
due
diligence
If not in vehicle
2180
Absence
on
contractual
relation NOT a
defense
possession or
use thereof is
indispensable in
UP COLLEGE OF LAW
Person Strictly
For What
Liable
weapons/
substances
such as firearms
and poison
Provinces, Cities The death or
and
injuries suffered
Municipalities
by any person by
reason of the
defective
condition
of
roads, streets,
bridges, public
buildings, and
other
public
works
Proprietor
ofa) Total or partial
building/
collapse
of
structure
building
or
structure if due
to
lack
of
necessary repair
s
b) 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
c) By
excessive
smoke,
which
may be harmful
to persons or
property
d) By falling of
trees situated at
or
near
highways
or
lanes, if not
caused by force
majeure
e) By emanations
from
tubes,
canals, sewers
or deposits of
infectious
matter,
constructed
Defenses or
Exceptions
his occupation
or business
Person Strictly
Liable
Public
works
must be under
their
supervisions
Engineer,
Architect
Contractor
Responsibility
for
collapse
should be due
to the lack of
necessary
repairs
or
Head of the
Family that lives
in a building or
any part thereof
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For What
without
precautions
suitable to the
place
if damage of
building
or
structure
is
caused by defect
in construction
which happens
within 15 years
from
construction;
action must be
brought within
10 years from
collapse
Liable
for
damages
caused
by
things thrown or
falling from the
same
Defenses or
Exceptions
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DAMAGES
Damages
DEFINITION
People vs. Ballesteros: Damages may be defined as
the pecuniary compensation, recompense, or
satisfaction for an injury sustained, or as otherwise
expressed, the pecuniary consequences which the
law imposes for the breach of some duty or the
violation of some right.
Special damages
Damages that arise from the special circumstance of
the case, which, if properly pleaded, may be added to
the general damages which the law presumes or
implies from the mere invasion of the plaintiffs
rights. Special damages are the natural, but NOT the
necessary result of an injury. These are not implied
by law.
REQUISITES
Asilio, Jr. v. People and Sps. Bombasi (2011): To seek
recovery of actual damages, it is necessary to prove
the actual amount of loss with a reasonable degree
of certainty, premised upon competent proof and on
the best evidence obtainable.
CLASSIFICATION
Art. 2197. Damages may be:
(1) Actual or compensatory;
(2) Moral;
(3) Nominal;
(4) Temperate or moderate;
(5) Liquidated; or
(6) Exemplary or corrective.
ACCORDING TO PURPOSE
General damages
Those which are the natural and necessary result of
the wrongful act or omission asserted as the
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DAMAGES
NOT SPECULATIVE
Actual damages to be compensable must be proved
by clear evidence, a court cannot rely on speculation,
conjectures or guesswork as to the fact and amount
of damages, but must depend on actual proof that
damages has been suffered and on evidence of the
actual amount.
General Rule
Attorneys fees and costs of litigation are recoverable
IF stipulated.
Exceptions
If there is no stipulation, they are recoverable only in
the following cases:
(1) By reason of malice or bad faith
(a) When exemplary damages are awarded
(b) In case of a clearly unfounded civil action
(c) Where defendant acted in gross and evident
bad faith
COMPONENTS
Actual damage covers the following:
(1) Value of loss; unrealized profit
(2) Attorneys fees and expenses of litigation
(3) Interest
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DAMAGES
Note:
In all cases, attorneys fees and costs of litigation
must be reasonable.
Even if expressly stipulated, attorneys fees are
subject to control by the Courts.
INTEREST
Art. 2209. If the obligation consists in the payment of
a sum of money, and the debtor incurs in delay, the
indemnity for damages, there being no stipulation to
the contrary, shall be the payment of the interest
agreed upon, and in the absence of stipulation, the
legal interest, which is six per cent per annum.
Base
(a) When the
obligation
is
breached, and it
consists in the
PAYMENT OF A
SUM
OF
MONEY, i.e., a
loan
or
forbearance of
money,
the
interest
due
should be
Rate
PAGE 364
Accrual
to be computed
from default, i.e.,
from JUDICIAL or
EXTRAJUDICIAL
demand
under
and subject to the
provisions
of
Article 1169 of the
Civil Code.
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Base
DAMAGES
Rate
Accrual
the rate of
legal interest,
whether the
case
falls
under a,b, or
c, above, shall
be 12% per
annum
established with
reasonable
certainty. Hence,
the interest shall
begin to run only
FROM THE DATE
THE JUDGMENT
OF THE COURT IS
MADE (at which
time
the
quantification of
damages may be
deemed to have
been reasonably
ascertained).
from
FINALITY
UNTIL
ITS
SATISFACTION,
this period being
deemed to be an
equivalent to a
forbearance
of
credit.
the discretion of
the court.
The actual base
for
the
computation of
legal
interest
shall be on the
amount finally
adjudged.
START OF DELAY
(1) Extrajudicial: demand letter
(2) Judicial: Filing of complaint
(3) Award
EXTENT OR SCOPE OF ACTUAL DAMAGES
Art.
Liability extends Note:
2201
to those:
Liability
(1) natural and extends to
probable
all damages
consequences which may
of the breach
be
(2) those that reasonably
have
been attributed to
Contracts
foreseen
the
nonand quasi
(3) those that performance
contracts
could
have of
the
been
obligation in
reasonably
case
of
foreseen
fraud, bad
Provided: obligor faith, malice
in good faith
or wanton
attitude
(FBM-WA).
Art.
Liability extends Note:
2202 Crimes
to all damages WON
and
which are the damage is
quasinatural
and foreseen is
delicts
probable
irrelevant
consequence
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DAMAGES
Note:
Interest may be allowed on damages awarded, in the
discretion of the court.
Daywalt vs. Recoletos et al.: The damages
recoverable upon breach of contract are, primarily,
the ordinary, natural and in a sense the necessary
damages resulting from the breach. Other damages,
known as special damages, are recoverable where it
appears that the particular conditions which made
such damages a probable consequence of the
breach were known to the delinquent party at the
time the contract was made.
Note:
Damages are to be increased or decreased (in case of
crimes only) according to aggravating or mitigating
circumstances present.
Interest, as part of damages, may be adjudicated in a
proper case, in the Courts discretion.
Contributory negligence of the plaintiff, in case of
quasi-delicts, shall reduce the damages to which he
may be entitled.
Note:
In crimes, no mitigation for contributory negligence.
Moral Damages
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DAMAGES
WHEN AWARDED
Awarded when injury consists of: (PBMF-MWSSS)
(a) Physical suffering
(b) Besmirched reputation
(c) Mental anguish
(d) Fright
(e) Moral shock
(f) Wounded feelings
(g) Social humiliation
(h) Serious anxiety
(i) Similar injury
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DAMAGES
Question
Ortillo contracts Fabricato, Inc. to supply and install
tile materials in a building he is donating to his
province. Ortillo pays 50% of the contract price as
per agreement. It is also agreed that the balance
would be payable periodically after every 10%
performance until completed. After performing
about 93% of the contract, for which it has been paid
an additional 40% as per agreement, Fabricato, Inc.
did not complete the project due to its sudden
cessation of operations. Instead, Fabricato, Inc.
demands payment of the last 10% of the contract
despite its non-completion of the project. Ortillo
refuses to pay, invoking the stipulation that payment
of the last amount of 10% shall be upon completion.
Fabricato, Inc. brings suit for the entire 10% plus
damages. Ortillo counters with claims for (a) moral
damages for Fabricato, Inc.s unfounded suit which
has damaged his reputation as a philanthropist and
respected businessman in his community, and (b)
attorneys fees.
(a) Does Ortillo have a legal basis for his claim for
moral damages?
(b) How about his claim for attorneys fees, having
hired a lawyer to defend him?
Note:
Recovery may be had by the offended party and also
by her parents.
IN ACTS REFERRED TO IN ARTS. 21, 26, 27, 28, 29, 32,
34 &35, NCC
Suggested Answer:
(a) There is no legal basis to Ortillos claim for
moral damages. It does not fall under the
coverage of Article 2219 of the New Civil Code.
(b) Ortillo is entitled to attorneys fees because
Fabricatos complaint is a case of malicious
prosecution or a clearly unfounded civil action
(Art. 2208 [4] and [11], NCC).
WHEN RECOVERABLE
Art. 2219. Moral damages may be recovered in the
following and analogous cases:
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DAMAGES
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DAMAGES
Temperate Damages
Nominal Damages
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DAMAGES
REQUISITES
(1) Actual existence of pecuniary loss
(2) The nature and circumstances of the loss
prevents proof of the exact amount
(3) They are more than nominal and less than
compensatory.
(4) Causal connection between the loss and the
defendants act or omission.
(5) Amount must be reasonable.
Exemplary Or Corrective
Damages
Liquidated Damages
Art. 2226. Liquidated damages are those agreed
upon by the parties to a contract, to be paid in case
of breach thereof.
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DAMAGES
WHEN RECOVERABLE
IN CRIMINAL OFFENSES; NCC ART. 2230
When
exemplary
damages are granted
the
crime
was
committed with an
Crimes
aggravating
circumstance/s
defendant acted with
Quasi-delicts
gross negligence
defendant acted in a
wanton,
fraudulent,
Contracts
and
reckless, oppressive, or
Quasi- contracts
malevolent
manner
(WFROMM)
If arising from
Art.
2230
Art.
2231
Art.
2232
General Principles
(1) Exemplary damages cannot be awarded alone:
they must be awarded IN ADDITION to moral,
temperate, liquidated
or
compensatory
damages.
(2) The purpose of the award is to deter the
defendant (and others in a similar condition)
from a repetition of the acts for which exemplary
damages were awarded; hence, they are not
recoverable as a matter of right.
(3) The defendant must be guilty of other malice or
else negligence above the ordinary.
(4) Plaintiff is not required to prove the amount of
exemplary damages.
a. But plaintiff must show that he is entitled to
moral, temperate, or compensatory
damage; that is, substantial damages, not
purely nominal ones. This requirement
applies even if the contract stipulates
liquidated damages.
b. The amount of exemplary damage need not
be pleaded in the complaint because the
same cannot be proved. It is merely
incidental or dependent upon what the
court may award as compensatory
damages.
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DAMAGES
Graduation of Damages
DUTY OF THE INJURED PARTY
Art. 2203. 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.
Lim and Gunnaban vs. CA (2002): Article 2203 of the
Civil Code exhorts parties suffering from loss or injury
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DAMAGES
BURDEN OF PROOF
The DEFENDANT has the burden of proof to
establish that the victim, by the exercise of the
diligence of a good father of a family, could have
mitigated the damages. In the absence of such
proof, the amount of damages cannot be reduced.
Note:
The victim is required only to take such steps as an
ordinary prudent man would reasonably adopt for
his own interest.
Art. 2215 In contracts, quasi-contracts, and quasidelicts, the court may equitably mitigate the
damages under circumstances other than the case
referred to in the preceding article, as in the
following instances:
(1) That the plaintiff himself has contravened the
terms of the contract;
(2) That the plaintiff has derived some benefit as a
result of the contract;
(3) In cases where exemplary damages are to be
awarded, that the defendant acted upon the
advice of counsel;
(4) That the loss would have resulted in any event;
(5) That since the filing of the action, the defendant
has done his best to lessen the plaintiff's loss or
injury.
RULES
IN CRIMES
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DAMAGES
Miscellaneous Rules
LIQUIDATED DAMAGES
Art. 2227. Liquidated damages, whether intended as
an indemnity or a penalty, shall be equitably reduced
if they are iniquitous or unconscionable.
COMPROMISE
Art. 2031. The courts may mitigate the damages to
be paid by the losing party who has shown a sincere
desire for a compromise.
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DAMAGES
NOMINAL DAMAGES
PAGE 376