CIVIL LAW

Q: For purposes of Civil Laws, what principle do we apply?

A: We apply the principle of nationality, which in simpler terms means that regardless of where a person may be, the law
of the country where he is a citizen of, will follow him on matters dealing with family rights and duties, status, condition and
legal capacity.
Q: What is the significance of determining legal capacity of a person?
A: You can invoke legal capacity for purposes of entering into contracts, for purposes of succession and for purposes of
entering into marriage.
PERSONS
Q. Is it a requirement that to prove change of domicile, the person must purchase a house in the community?
A. No. A candidate is not required to have a house in a community to establish his residence or domicile in a particular
place. It is sufficient that he should live there even if it be in a rented house or in the house of a friend or relative. To insist
that the candidate own the house where he lives would make property a qualification for public office. What matters is that
Jalosjos has proved two things: actual physical presence in Ipil and an intention of making it his domicile (Jalosjos vs.
COMELEC, April 24, 2012).
Q. In 1950, husband and wife were married. In 1989, husband sold to a parcel of land to third parties. In 1997, wife
filed a case to annul the sale and reconvey the property on the ground that the sale was void since her was not
attained and that her signature was a mere forgery. Did the action already prescribed?
A. No. Although they were married during the 1950 civil code, the sale was done in 1989, after the effectivity of the Family
Code. The Family Code applies to Conjugal Partnerships already established at the enactment of the Family Code. The
sale of conjugal property done by the husband without the consent of the wife is completely void under Art 124 of the
Family Code. With that, it is a given fact that assailing a void contract never prescribes. On the argument that the action
has already prescribed based on the discovery of the fraud, that prescriptive period applied to the buyers since it was
them who should have assailed such contract due to the fraud but they failed to do so. On the other hand, the action to
assail a sale based on no consent given by the other spouse does not prescribe since it is a void contract (Fuentes vs.
Roca, April 21, 2010).
Q. Is the hotel owner is liable for civil damages to the surviving heirs of its hotel guest whom strangers murder
inside his hotel room?
A. Yes. Liability on the part of the defendant is based upon the fact that he was in a better situation than the injured person
to foresee and prevent the happening of the injurious occurrence. It is enough that guests are injured while inside the
hotel premises to make the hotelkeeper liable. With great caution should the liability of the hotelkeeper be enforced when
a guest died inside the hotel premises. The hotel business, like the common carriers business, is imbued with public
interest. Catering to the public, hotelkeepers are bound to provide not only lodging for hotel guests but also security to
their persons and belongings. The twin duty constitutes the essence of the business.
Applying by analogy Article 2000, Article 2001 and Article 2002 of the Civil Code (all of which concerned the hotelkeepers
degree of care and responsibility as to the personal effects of their guests), we hold that there is much greater reason to
apply the same if not greater degree of care and responsibility when the lives and personal safety of their guests are
involved. Otherwise, the hotelkeepers would simply stand idly by as strangers have unrestricted access to all the hotel
rooms on the pretense of being visitors of the guests, without being held liable should anything untoward befall the unwary
guests (Makati Shangri-la vs. Harper, August 29, 2012).
Q. Accused, in a case for bigamy, admitted that he married twice. He, however, claimed that he was a Muslim
convert way back in 1992, even before he contracted the first marriage. Is accused liable for bigamy?
A. Yes. Granting arguendo that accused is indeed of Muslim faith at the time of celebration of both marriages, he cannot
deny that both marriage ceremonies were not conducted in accordance with the Code of Muslim Personal Laws. The
Code of Muslim Personal Laws states that in case of a marriage between a Muslim and a non-Muslim, solemnized not in

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accordance with Muslim law or this Code, the Family Code of the Philippines, or Executive Order No. 209, in lieu of the
Civil Code of the Philippines shall apply (Nollora vs. People, September 7, 2011).
Q. Does the falsity in the Affidavit of Cohabitation render the marriage void?
A. Yes. The falsity of the affidavit cannot be considered as a mere irregularity in the formal requisites of marriage. The law
dispenses with the marriage license requirement for a man and a woman who have lived together and exclusively with
each other as husband and wife for a continuous and unbroken period of at least five years before the marriage. The aim
of this provision is to avoid exposing the parties to humiliation, shame and embarrassment concomitant with the
scandalous cohabitation of persons outside a valid marriage due to the publication of every applicants name for a
marriage license. In the instant case, there was no scandalous cohabitation to protect; in fact, there was no cohabitation
at all. The false affidavit which petitioner and respondent executed so they could push through with the marriage has no
value whatsoever; it is a mere scrap of paper. They were not exempt from the marriage license requirement. Their failure
to obtain and present a marriage license renders their marriage void ab initio (de Castro vs. de Castro, February 13,
2008).
Q. Municipal Civil Registrar of Carmona, Cavite issued a certification to the effect that no such marriage license
for A and B was issued, and that the serial number of the marriage license pertained to another couple. Does the
absence of the words "despite diligent search" in the certification render it ineffective?
A. No. Under Sec. 3(m), Rule 131 of the Rules of Court, it is a disputable presumption that an official duty has been
regularly performed, absent contradiction or other evidence to the contrary. We held, "The presumption of regularity of
official acts may be rebutted by affirmative evidence of irregularity or failure to perform a duty."46 No such affirmative
evidence was shown that the Municipal Civil Registrar was lax in performing her duty of checking the records of their
office, thus the presumption must stand. In fact, proof does exist of a diligent search having been conducted, as Marriage
License No. 996967 was indeed located and submitted to the court. The fact that the names in said license do not
correspond to those of Gloria and Syed does not overturn the presumption that the registrar conducted a diligent search
of the records of her office (Abbas vs. Abbas, January 30, 2013).
Q. Is the reception of evidence on custody, support and property relations in a nullity of marriage case necessary
for a complete and comprehensive adjudication of the parties respective claims?
A. No. The family court, shall proceed with the liquidation, partition and distribution, custody, support of common children,
and delivery of their presumptive legitimes upon entry of judgment granting the petition. The trial court may receive
evidence on the subject incidents after a judgment granting the petition but before the decree of nullity or annulment of
marriage is issued (Yu vs. Carpio, June 15, 2011).
Q. May a husband or wife of a prior marriage file a petition to recognize a foreign judgment nullifying the
subsequent marriage between his or her spouse and a foreign citizen on the ground of bigamy?
A. Yes. The prior spouse has a personal and material interest in maintaining the integrity of the marriage he contracted
and the property relations arising from it. There is also no doubt that he is interested in the cancellation of an entry of a
bigamous marriage in the civil registry, which compromises the public record of his marriage. The interest derives from the
substantive right of the spouse not only to preserve (or dissolve, in limited instances) his most intimate human relation, but
also to protect his property interests that arise by operation of law the moment he contracts marriage. These property
interests in marriage include the right to be supported in keeping with the financial capacity of the family70 and
preserving the property regime of the marriage (Fujiki vs. Marinay, June 26, 2013).
Q. Is the exercise of the right of suffrage alone considered a positive act of electing Filipino citizenship?
A. No. The mere exercise of suffrage, continuous and uninterrupted stay in the Philippines, and other similar acts showing
exercise of Philippine citizenship cannot take the place of election of Philippine citizenship. Hence, respondent cannot
now be allowed to seek the intervention of the court to confer upon her Philippine citizenship when clearly she has failed

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to validly elect Philippine citizenship. As we held in Ching, the prescribed procedure in electing Philippine citizenship is
certainly not a tedious and painstaking process. All that is required of the elector is to execute an affidavit of election of
Philippine citizenship and, thereafter, file the same with the nearest civil registry (Republic vs. Sagun, February 15, 2012).
Q. Is there litis pendentia involving a judicial declaration of heirship and a cancellation of entry in the civil
register?
A. No. The first action is a special proceeding in which a person claiming the status of heir seeks prior judicial declaration
of his or her right to inherit from a decedent; the second one is a special proceeding whereby a substantial change
affecting the civil status of a party is sought through the amendment of the entry in the civil register. Because the
respective subject matters in the two actions differ, any decision that may be rendered in one of them cannot constitute
res judicata in the other. A judicial declaration of heirship is inconclusive on the fact of occurrence of an event registered or
to be registered in the civil register, while changes in the entries in the civil register do not in themselves settle the issue of
succession (United Abangan vs. Sabellano, June 18, 2012).
Q. Claiming, however, that his parents were never legally married, A filed a Petition to change his name. Is it
proper?
A. No. His reason for changing his name cannot be considered as one of, or analogous to, recognized grounds, however.
The change being sought in respondents petition goes so far as to affect his legal status in relation to his parents. It
seeks to change his legitimacy to that of illegitimacy (Republic vs. Magpayo, February 2, 2011).

PROPERTY
Q: What are the limitations on the right of ownership under the Philippine Constitution?
A: The limitations are:
a. right of eminent domain
b. police power of the State
c. provisions on the National Patrimony and Economy of the State
d. taxation
Q: What are the limitations on the right of ownership under the New Civil Code?
A: The limitations are:
a. provisions against nuisances
b. right of way and easements/ waters
c. restrictions on party walls
d. contractual rights which can limit ones right of ownership
Q: What is the Doctrine of Incomplete Privilege?
A: Under Art. 432 of the Civil Code, a property owner cannot prevent an interference on his property if such is necessary
to avert an imminent and great danger to other peoples properties provided that the threatened danger is much greater
than the damage suffered by the property owner of the interference
For example: A house is burning in the middle of rows of houses. The firemen can tear down the adjacent houses to
prevent the spread of fire. The owners of the adjacent houses have the right to demand indemnity from those benefited.
Q: What is co-ownership?
A: State where an undivided thing or right belongs to two or more persons
Q: What are the characteristics of co-ownership?

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There must be more than one subject or owner

There is one physical whole divided into ideal shares
Each ideal share is definite in amount but is not physically segregated from the rest
Regarding the physical whole, each co-owner must respect each other in the common use, enjoyment, or
preservation of the physical whole
Regarding the ideal share, each co-owner holds almost absolute control over the same
It is not a juridical person
There is no mutual agency
There is no extinguishment upon the death of any co-owner
A co-owner is in a sense a trustee for the other co-owners

Q: Define quieting of title

A: A common-law remedy for the removal of any cloud upon or doubt or uncertainty w/ respect to title to real property. Its
purpose is to secure an adjudication that a claim of title to or an interest in property, adverse to that of the complainant, is
invalid, so that the complainant and those claiming under him may be forever afterward free from any danger of hostile
claim.
Q: Distinguish usufruct from easement?
A:
USUFRUCT
Object may be real or personal property
What can be enjoyed are ALL uses & fruits of the
property
Cannot be constituted on an easement; but it may
be constituted on the land burdened by an
easement
Usually extinguished by death of usufructuary

EASEMENT
Involves only real property
Easement is limited t a particular use (e.g. right of way)
May be constituted in favour, or burdening, a piece of
land held in usufruct
Not extinguished by the death of the owner of the
dominant estate

Q: What are the requisites for legal easement of right of way?

A: The requisites are:
a. It is surrounded by other immovables and has no adequate outlet to a public highway;
b. payment of proper indemnity;
c. the isolation is not the result of its own acts;
d. the right of way claimed is at the point least prejudicial to the servient estate; and
e. to the extent consistent with the foregoing rule, where the distance from the dominant estate to a public
highway may be the shortest.
OBLIGATIONS AND CONTRACTS
Q: What is capacity to contract?
A: Contracting parties must be juristic entities at the time of the consummation of the contract. Stated otherwise, to form a
valid and legal agreement it is necessary that there be a party capable of contracting and a party capable of being
contracted with. Hence, if any one party to a supposed contract was already dead at the time of its execution, such
contract is undoubtedly simulated and false and, therefore, null and void by reason of its having been made after the
death of the party who appears as one of the contracting parties therein. The death of a person terminates contractual
capacity. De Belen Vda. de Cabalu, et al. v. Tabu, et al. (2012)
Q: When is a contract perfected?

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A: For a contract to be perfected, three elements are needed to create a perfected contract: 1) the consent of the
contracting parties; (2) an object certain which is the subject matter of the contract; and (3) the cause of the obligation
which is established. Under the law on sales, a contract of sale is perfected when the seller, obligates himself, for a price
certain, to deliver and to transfer ownership of a thing or right to the buyer, over which the latter agrees . From that
moment, the parties may demand reciprocal performance. Starbright Sales Eterprises, Inc. vs. Philippine Realty
Corporation, Msgr. Domingo A. Cirilos, et al. (2012)
Q: What is ratification?
A: Article 1392 of the Civil Code states that ratification extinguishes the action to annul a voidable contract. Ratification of
a voidable contract, under Article 1393, may be effected expressly or tacitly. It is understood that there is a tacit ratification
if, with knowledge of the reason which renders the contract voidable and such reason having ceased, the person who has
a right to invoke it should execute an act which necessarily implies an intention to waive his right.
Implied ratification may take diverse forms, such as by silence or acquiescence; by acts showing approval or adoption of
the contract; or by acceptance and retention of benefits flowing therefrom. Sps. Fernando and Lourdes Viloria vs.
Continental Airlines, Inc. (2012)
Q: What are Reciprocal Obligations?
A: Reciprocal obligations are those which arise from the same cause, and in which each party is a debtor and a creditor of
the other, such that the obligation of one is dependent upon the obligation of the other. They are to be performed
simultaneously such that the performance of one is conditioned upon the simultaneous fulfillment of the other. For one
party to demand the performance of the obligation of the other party, the former must also perform its own obligation.
Accordingly, petitioner, not having provided the services that would require the payment of service fees as stipulated in the
Lease Development Agreement, is not entitled to collect the same. Subic Bay Metropolitan Authority vs. Honorable Court
of Appeals and Subic International Hotel Corporation (2012)
Q: What constitutes bad faith?
A: Bad faith does not simply connote bad judgment or negligence; it imports a dishonest purpose or some moral obliquity
and conscious doing of a wrong, a breach of a known duty through some motive or interest or ill will that partakes of the
nature of fraud.
Fraud has been defined to include an inducement through insidious machination. Insidious machination refers to a
deceitful scheme or plot with an evil or devious purpose. Deceit exists where the party, with intent to deceive, conceals or
omits to state material facts and, by reason of such omission or concealment, the other party was induced to give consent
that would not otherwise have been given.
These are allegations of fact that demand clear and convincing proof. They are serious accusations that can be so
conveniently and casually invoked, and that is why they are never presumed. In this case, the evidence presented is
insufficient to prove that respondent acted in bad faith or fraudulently in dealing with petitioner. R.S. Tomas, Inc. v. Rizal
Cement Company, Inc. (2012)
Q: What constitutes a waiver?
A: Waiver is defined as a voluntary and intentional relinquishment or abandonment of a known existing legal right,
advantage, benefit, claim or privilege, which except for such waiver the party would have enjoyed; the voluntary
abandonment or surrender, by a capable person, of a right known by him to exist, with the intent that such right shall be
surrendered and such person forever deprived of its benefit; or such conduct as warrants an inference of the
relinquishment of such right; or the intentional doing of an act inconsistent with claiming it.
FFCCIs voluntary payment in favor of HRCC, albeit in amounts substantially different from those claimed by the latter, is a
glaring indication that it had effectively waived its right to demand for the joint measurement of the completed works.
FFCCIs failure to demand a joint measurement of HRCCs completed works reasonably justified the inference that it had
already relinquished its right to do so. F.F. Cruz & Co., Inc. vs. HR Construction Corp. (2012)
Q: When can mistake vitiate consent?
A: For mistake as to the qualification of one of the parties to vitiate consent, two requisites must concur:

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1. the mistake must be either with regard to the identity or with regard to the qualification of one of the contracting
parties; and
2. the identity or qualification must have been the principal consideration for the celebration of the contract.
Q: What are the remedies of a party in case of breach?
A: The parties to a contract are allowed to stipulate on liquidated damages to be paid in case of breach. A perusal of the
significant provisions of the Construction Contract and the relevant construction documents would show that the rights to
liquidated damages and to terminate the contract are distinct remedies that are available to respondent. As long as the
contractor fails to finish the works within the period agreed upon by the parties without justifiable reason and after the
owner makes a demand, then liability for damages as a consequence of such default arises.
With the modification of the contract period, petitioner was obliged to perform the works and deliver the units. Yet it still
reneged on its obligation. Assuming that the reasons for valid extension indeed exist, still, petitioner should bear the
consequences for the delay when petitioner failed to meet its new deadline.. Atlantic Erectors, Inc. vs. Court of Appeals
and Herbal Cove Realty Corporation (2012)
Q: Distinguish between Annulment and Rescission
A: Annulment under Article 1390 of the Civil Code and rescission under Article 1191 are two inconsistent remedies. In
resolution, all the elements to make the contract valid are present; in annulment, one of the essential elements to a
formation of a contract, which is consent, is absent. In resolution, the defect is in the consummation stage of the contract
when the parties are in the process of performing their respective obligations; in annulment, the defect is already present
at the time of the negotiation and perfection stages of the contract. Accordingly, by pursuing the remedy of rescission
under Article 1191, there was implied admission of the validity of the subject contracts, forfeiting their right to demand their
annulment. A party cannot rely on the contract and claim rights or obligations under it and at the same time impugn its
existence or validity. Indeed, litigants are enjoined from taking inconsistent positions.
The right to rescind a contract for non-performance of its stipulations is not absolute. The general rule is that rescission of
a contract will not be permitted for a slight or casual breach, but only for such substantial and fundamental violations as
would defeat the very object of the parties in making the agreement. Whether a breach is substantial is largely determined
by the attendant circumstances.
Under Article 1192, in case both parties have committed a breach of the obligation, the liability of the first infractor shall be
equitably tempered by the courts. If it cannot be determined which of the parties first violated the contract, the same shall
be deemed extinguished, and each shall bear his own damages. Sps. Fernando and Lourdes Viloria vs. Continental
Airlines, Inc. (2012)
Q: Can rescission be waived?
A: Yes. The rescission referred to in Article 1191 of the Civil Code, more appropriately referred to as resolution, is on the
breach of faith by the defendant, which is violative of the reciprocity between the parties. The right to rescind, however,
may be waived, expressly or impliedly. While the right to rescind reciprocal obligations is implied, that is, that such right
need not be expressly provided in the contract, nevertheless the contracting parties may waive the same. F.F. Cruz & Co.,
Inc. vs. HR Construction Corp. (2012)
Q: What is novation?
A: A novation arises when there is a substitution of an obligation by a subsequent one that extinguishes the first, either by
changing the object or the principal conditions, or by substituting the person of the debtor, or by subrogating a third person
in the rights of the creditor. For a valid novation to take place, there must be, therefore: ( a) a previous valid obligation; (b)
an agreement of the parties to make a new contract; (c) an extinguishment of the old contract; and (d) a valid new
contract.
To be clear, novation is not presumed. This means that the parties to a contract should expressly agree to abrogate the
old contract in favor of a new one. In the absence of the express agreement, the old and the new obligations must be
incompatible on every point. There is incompatibility when the two obligations cannot stand together, each one having its
independent existence. If the two obligations cannot stand together, the latter obligation novates the first.

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A new contract that is a mere reiteration, acknowledgment or ratification of the old contract with slight modifications or
alterations as to the cause or object or principal conditions can stand together with the former one, and there can be no
incompatibility between them. Moreover, a creditors acceptance of payment after demand does not operate as a
modification of the original contract. Lastly, the extension of the maturity date did not constitute a novation of the previous
agreement. It is settled that an extension of the term or period of the maturity date does not result in novation. Heirs of
Servando Franco vs. Sps. Veronica & Danilo Gonzales (2012)
SALES AND LEASE
Q: Distinguish between a contract of sale and a contract to sell
A: The elements of a contract of sale are, to wit: a) Consent or meeting of the minds, that is, consent to transfer ownership
in exchange for the price; b) Determinate subject matter; and c) Price certain in money or its equivalent. It is the absence
of the first element which distinguishes a contract of sale from that of a contract to sell.
In a contract to sell, the prospective seller explicitly reserves the transfer of title to the prospective buyer, meaning, the
prospective seller does not as yet agree or consent to transfer ownership of the property subject of the contract to sell
until the happening of an event, such as, in most cases, the full payment of the purchase price. What the seller agrees or
obliges himself to do is to fulfill his promise to sell the subject property when the entire amount of the purchase price is
delivered to him. In other words, the full payment of the purchase price partakes of a suspensive condition, the nonfulfillment of which prevents the obligation to sell from arising and, thus, ownership is retained by the prospective seller
without further remedies by the prospective buyer.
In a contract of sale, on the other hand, the title to the property passes to the vendee upon the delivery of the thing sold.
Unlike in a contract to sell, the first element of consent is present, although it is conditioned upon the happening of a
contingent event which may or may not occur. If the suspensive condition is not fulfilled, the perfection of the contract of
sale is completely abated. However, if the suspensive condition is fulfilled, the contract of sale is thereby perfected, such
that if there had already been previous delivery of the property subject of the sale to the buyer, ownership thereto
automatically transfers to the buyer by operation of law without any further act having to be performed by the seller. The
vendor loses ownership over the property and cannot recover it until and unless the contract is resolved or rescinded.
Virgilio S. David vs. Misamis Occidental II Electric Cooperative, Inc. (2012)
Q: What is a double sale?
A: A double sale situation, which would call, if necessary, the application of Art. 1544 of the Civil Code, arises when, as
jurisprudence teaches, the following requisites concur: (a) The two or more sales transactions must constitute valid sales;
(b) The two (or more) sales transactions must pertain to exactly the same subject matter; (c) The two (or more) buyers at
odds over the rightful ownership of the subject matter must each represent conflicting interests; and (d) The two (or more)
buyers at odds over the rightful ownership of the subject matter must each have bought from the very same seller.
Q: What is a purchaser in good faith?
A: A purchaser in good faith is one who buys property without notice that some other person has a right to or interest in
such property and pays its fair price before he has notice of the adverse claims and interest of another person in the same
property. However, where the land sold is in the possession of a person other than the vendor, the purchaser must be
wary and must investigate the rights of the actual possessor; without such inquiry, the buyer cannot be said to be in good
faith and cannot have any right over the property.
Q: Can a void and inexistent sale be ratified?
A: As to the applicability of Article 1317 of the Civil Code, contracts of sale lacking the approval of the Secretary of the
Interior/Agriculture and Natural Resources fall under the class of void and inexistent contracts enumerated in Article 1409,
which cannot be ratified. Section 18 of Act No. 1120 mandates the approval by the Secretary for a sale of friar land to be
valid. The official document denominated as Sale Certificate clearly required both the signatures of the Director of Lands
who issued such sale certificate to an applicant settler/occupant and the Secretary of the Interior/Agriculture and Natural
Resources indicating his approval of the sale. These forms had been prepared and issued by the Chief of the Bureau of
Public Lands under the supervision of the Secretary of the Interior, consistent with Act No. 1120 as may be necessary x x

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x to carry into effect all the provisions [thereof] that are to be administered by or under [his] direction, and for the conduct
of all proceedings arising under such provisions. Serverino M. Manotok IV, et al. vs. Heirs of Homer L. Barque,
represented by Teresita Barque Hernandez (2012)
Q: When is there an implied new lease?
A: An implied new lease will set in if it is shown that: (1) the term of the original contract of lease has expired; (2) the
lessor has not given the lessee a notice to vacate; and (3) the lessee continued enjoying the thing leased for 15 days with
the acquiescence of the lessor. This acquiescence may be inferred from the failure of the lessor to serve notice to vacate
upon the lessee. This principle is provided for under Article 1670 of the Civil Code. Thus, after the expiration of the
contract of lease, the implied new lease should have only been in a monthly basis. Zosima Inc. v. Salimbagat; (2012)
Q: What is a condominium?
A: Under Section 2 of RA 4726, a condominium is an interest on real property consisting of a separate interest in a unit in
a residential, industrial or commercial building and in undivided interest in common, directly or indirectly in the land on
which it is located and in other common areas of the building.
Q: What is the rule on alien holdings?
A: If the common areas are in the name of the unit holders as co-owners, then no unit may be transferred except to
Filipino citizens or corporations at least 60% Filipino owned, except by hereditary succession. If the common areas are in
the name of the condo corporation, then 40% of the units may be sold or transferred to aliens, or alien entities, so long as
the stockholdings of Filipinos in the condo corp do not amount to less than 60%.
Q: What are the mechanics of a condominium corporation?
A: As to form: The corporation may be stock or non-stock corporation.
1. In stock corporations, shares of stock are issued. For every condominium owned, one share is issued.
2. In non-stock corporations, certificates of membership are issued.
SUCCESSION
Q: Differences between the succession to a legitimate and an illegitimate person.
A:
Legitimate Decedent
Legitimate parents and other legitimate ascendants are
excluded only be legitimate children and their legitimate
descendants, as well as by an adopted child. Legitimate
parents and other legitimate ascendants enjoy a
preference over illegitimate children and their
descendants.
Succession in the ascending line includes legitimate
parents and other legitimate ascendants.
Legitimate brothers, sisters, nephews and nieces enjoy a
preference over all other legitimate collateral relatives
within the fifth degree, for which reason they exclude
legitimate uncles and aunts.

Illegitimate Decedent
Illegitimate parents are excluded by any descendant,
whether legitimate or illegitimate, as well as by an adopted
child. Illegitimate children and their descendants enjoy a
preference over the illegitimate parents.
Succession in the ascending line is limited to the
illegitimate parents only. Other illegitimate ascendants are
excluded.
In the collateral line, succession is limited to illegitimate
brothers, sisters, nephews and nieces. No other collateral
relative is considered an intestate heir.

Q: What are the successional rights of the adopting parents?

A:

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1. Adopting parents inherit from the adopted child only in intestacy. If the adopted child should execute a will, the law on
testamentary succession will apply. The adopted child may, however, provide something for the adopting parents
either by instituting either or both of the adopting parents as voluntary heir(s), or by giving either or both a legacy or a
devise. In any event, the adopting parents will not inherit as compulsory heirs. The biological parents retain their
status as the legal heirs of the adopted child in case the biological parents are called upon to succeed.
2. As voluntary heirs, the adopting parents are not entitled to receive the legitime.
3. In Article 190 of the Family Code, the adopting parents inherit by intestacy only in four specific instances, namely:
(a) When the parents, legitimate or illegitimate, or the legitimate ascendants of the adopted child concur with the
adopters, they shall divide the entire estate, one-half to be inherited by the parents or ascendants and the other
half by the adopters;
(b) When the surviving spouse or the illegitimate children of the adopted concur with the adopters, they shall divide
the entire estate in equal shares, one-half to be inherited by the spouse or the illegitimate children of the adopted
and the other half, by the adopters;
(c) When the adopters concur with the illegitimate children and the surviving spouse of the adopted, they shall divide
the entire estate in equal shares, one-third to be inherited by the illegitimate children, one-third by the surviving
spouse, and one-third by the adopters;
(d) When only the adopters survive, they shall inherit the entire estate.
4. In the four instances that the adopting parents inherit from the adopted child in intestacy, Article 190 of the Family
Code simply gave the adopting parents the disposable free portion, after paying the legitime of the compulsory heirs.
Thus:
(a) In the first case, the adopting parents concur with the biological parents of the adopted child. The legitime of the
biological parents is one-half of the estate, whether the parents are legitimate or illegitimate. The other half of the
estate is the disposable free portion which Article 190 awards to the adopting parents.
(b) In the second case, the adopting parents concur with the illegitimate children or the surviving spouse of the
adopted child. The legitime of illegitimate children is one-half of the estate. In the alternate case, the legitime of
the surviving spouse is likewise one-half of the estate. In either case, therefore, the other half of the estate which
Article 190 awards to the adopting parents represent the disposable free portion.
(c) In the third case, the adopting parents concur with the illegitimate children and the surviving spouse of the
adopted child. The legitime of the illegitimate children is one-third of the estate; the legitime of the surviving
spouse is likewise one-third of the estate. Article 190 awards the remaining one-third portion of the estate, the
disposable free portion, to the adopting parents.
In all other cases, the adopting parents are excluded from the inheritance of the adopted child. Specifically, if the adopted
child is survived by legitimate children or other legitimate descendants, even the biological parents are excluded. With
more reason, the adopting parents should be excluded. Hence paragraph 1 of Article 190 of the Family Code states that in
this case, succession to the adopted child shall be in accordance with the ordinary rules of legal or intestate succession.
Q: During the lifetime of the reserva, would it be possible for the person who is obliged to make the reservation
to alienate the reservable property?
A: Yes. Since the ascendant-reservista actually acquires the ownership of the reservable property upon the death of the
descendant-propositus subject to the resolutory condition that there must exist at the time of his death, relatives of the
descendant, who are within the third degree and who belong to the line from which the property came, it is clear that all of
the attributes of the right of ownership, such as enjoyment, disposal and recovery belong to him exclusively, although
conditional and revocable. He can therefore, alienate or encumber the property if he so desires, but he will only alienate
or encumber what he has, and nothing more because no one can give what does not belong to him. As the consequence,
the acquirer will only receive a limited and revocable title. Therefore, after the death of the ascendant, the reservatarios
may then rescind the alienation or encumbrance, because the condition to which it is subject has already been fulfilled.

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Q: What is the doctrine of Dependent Relative Revocation?
A: When the testator provides in the subsequent will that the revocation of the prior one is dependent on the capacity or
acceptance of the heir, devisee or legatee instituted, the first will is not necessarily revoked. The revocation of the first will
is considered conditional and dependent upon the efficacy of the new disposition. If for any reason the new will intended
to be made as a substitute becomes inoperative, the revocation remains, the original will remains in full force.
Q: How may the causes of unworthiness be erased?
A: Since acts of unworthiness are offenses directed against the decedent, only the decedent can erase such acts of
unworthiness. He can do this by pardoning the offense either by expressly or impliedly. There is an express pardon when
the decedent condones the act of unworthiness in writing. There is an implied pardon when the testator, with knowledge
of the act of unworthiness, executes a will instituting the person who has committed the offense as an heir.
Q: A in his last will provided: I bequeath to my nephews, X, Y, and Z, whatever credit balance there may be
in my current account in the PNB at the time of my death, in the proportion of 1/3 each, X, however, died before
the testator leaving S, his only son, as heir. When A died, he had a credit balance of P30,000. Now, the
P10,000 that would have gone to X is claimed by the following:
(a) S, by right of representation
(b) Y and Z, by right of accretion
(c) B and C, children of A, by right of intestate succession.
Who is entitled to the P10,000? Reasons.
A: Y and Z are entitled to P10,000. In this case, both of the requisites prescribed by law of accretion to take place in
testamentary succession are present. The claim of S is untenable, because a legatee cannot be represented. The same
is also true with regard to the claim of B and C, because the right to inherit as legal heirs in this case must give way to
the right of the co-heirs to inherit by right of accretion where the conditions prescribed by law for such accretion to take
place are present.
PARTNERSHIP AND AGENCY
Q: What is the difference between general partnership v. limited partnership?
A: In general partnership, the partners are personally liable for partnership obligations beyond their contribution. In a
limited partnership, the liability extend only to capital contributions unless they participate in the management.
Q: Differentiate agency from sale?
A: In an agency, the principal retains ownership and control over the property and the agent merely acts on the principals
behalf and under his instructions in furtherance of the objectives for which the agency was established. On the other
hand, the contract is a sale if the parties intended that the delivery of the property will effect a relinquishment of title,
control and ownership in such a way that the recipient may do with the property as he pleases. Sps. Fernando and
Lourdes Viloria vs. Continental Airlines, Inc. (2012)
Q: What is an agency by estoppel?
A: An agents act, even if done beyond the scope of his authority, may bind the principal if he ratifies them, whether
expressly or tacitly. It must be stressed though that only the principal, and not the agent, can ratify the unauthorized acts,
which the principal must have knowledge of. Country Bankers Insurance Corporation vs. Keppel Cebu Shipyard, Inc., et
al. (2012)
Q: When can an agent appoint a substitute agent?
A: The agent may appoint a substitute if the principal has not prohibited him from doing so. All acts of the substitute
appointed against the prohibition of the principal shall be void.

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Q: When is an agent liable for the acts of a sub-agent?
A: When the agent was not given the power to appoint one and when he was given such power, but without designating
the person, and the person appointed was notoriously incompetent or insolvent.
Q: Can a party seek the enforcement of both the compromise agreement and payment of loan, in the event that
the compromise agreement remains unfulfilled?
A: No, It is an attempt to exact payment on the compromise agreement and the loan. This goes against the very purpose
of the parties entering into a compromise agreement, which was to extinguish the obligation under the loan. Arthur F.
Mechavez vs. Marlyn M, Bermudez (2012)
Q: What are the two kinds of compromise agreement?
A: A compromise is either judicial, if the objective is to put an end to a pending litigation, or extrajudicial, if the objective is
to avoid a litigation. Land Bank of the Philippines vs. Heirs of Spouses Jorja Rigor Soriano and Magin Soriano (2013)
Q: Is a judicial compromise immediately executory?
A: A judicial compromise, while immediately binding between the parties upon its execution, is not executory until it is
approved by the court and reduced to a judgment. Land Bank of the Philippines vs. Heirs of Spouses Jorja Rigor Soriano
and Magin Soriano (2013)
Q: When is a compromise agreement deemed valid?
A: The validity of a compromise is dependent upon its compliance with the requisites and principles of contracts dictated
by law. The terms and conditions of a compromise must not be contrary to law, morals, good customs, public policy and
public order. Land Bank of the Philippines vs. Heirs of Spouses Jorja Rigor Soriano and Magin Soriano (2013)
Q: What are the effects of a compromise agreement?
A: It has the effect and authority of res judicata between the parties but there shall be no execution except in compliance
with a judicial compromise.
CREDIT
Q. What is an assignment of credit?
A. An assignment of credit is an agreement by virtue of which the owner of a credit, known as the assignor, by a legal
cause, such as sale, dation in payment, exchange or donation, and without the consent of the debtor, transfers his credit
and accessory rights to another, known as the assignee, who acquires the power to enforce it to the same extent as the
assignor could enforce it against the debtor.
It may be in the form of sale, but at times it may constitute a dation in payment, such as when a debtor, in order to obtain
a release from his debt, assigns to his creditor a credit he has against a third person. As a dation in payment, the
assignment of credit operates as a mode of extinguishing the obligation; the delivery and transmission of ownership of a
thing (in this case, the credit due from a third person) by the debtor to the creditor is accepted as the equivalent of the
performance of the obligation. (Sps. Godfrey and Gerardina Serfino vs. Far East Bank and Trust Company, Inc., now Bank
of the Philippine Islands.G.R. No. 171845. October 10, 2012)
Q. What is an escalation clause?
A. Escalation clauses are valid and do not contravene public policy. Any increase in the rate of interest made pursuant to
an escalation clause must be the result of an agreement between the parties. Thus, any change must be mutually agreed

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upon, otherwise, the change carries no binding effect. (Spouses Humberto Delos Santos and Carmencita Delos Santos
vs. Metropolitan Bank and Trust Company G.R. No. 153852. October 24, 2012)
Q. What are the requisites of mortgage?
A.
1. that it be constituted to secure the fulfillment of a principal obligation;
2. that the mortgagor be the absolute owner of the thing mortgaged; and
3. that the persons constituting the mortgage have free disposal of their property, and in the absence of free
disposal, that they be legally authorized for the purpose.
Q. What are the elements of pactum commissorium?
A. The following are the elements of pactum commissorium:
1. There should be a property mortgaged by way of security for the payment of the principal obligation; and
2. There should be a stipulation for automatic appropriation by the creditor of the thing mortgaged in case of nonpayment of the principal obligation within the stipulated period.
The power of attorney provision above did not provide that the ownership over the subject property would
automatically pass to Villar upon Galass failure to pay the loan on time. What it granted was the mere
appointment of Villar as attorney-in-fact, with authority to sell or otherwise dispose of the subject property, and to
apply the proceeds to the payment of the loan. (Pablo P. Garcia vs. Yolanda Valdez Villar (2012)

LAND TITLES AND DEEDS

Q. What is the Regalian Doctrine?
A. Under the Regalian doctrine, all lands of whatever classification and other natural resources not otherwise appearing to
be clearly within private ownership belong to the State.
Q. Are there any exceptions to the Regalian doctrine?
A. The recognition of the existence of native title to land, or ownership of land by Filipinos by virtue of possession under a
claim of ownership since time immemorial and independent of any grant from the Spanish crown.
Q. Is registration a mode of acquiring ownership?
A. No. Registration is not a mode of acquiring ownership but is merely a procedure to establish evidence of title over
realty.
Q. Does the law authorize acquisition of ownership by prescription?
A. Yes. Under the ordinary acquisitive prescription, a person acquires ownership of patrimonial property through
possession for at least 10 years, in good faith and with just title. Under the extraordinary acquisitive prescription, a
persons uninterrupted adverse possession of patrimonial property for at least 30myears, regardless of good faith or just
title, ripens into ownership.
Q. What is the rule of caveat emptor (buyer beware)?

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A. It requires the purchaser to be aware of the supposed title of the vendor and one who buys without checking the
vendors title takes all the risks and losses consequent to such failure.
Q. What is the rule as regards the rule on double sale of property?
A. The law gives preference to: (a) the first registrant in good faith; (b) the first possessor in good faith; (c) the buyer who
in good faith presents the oldest title.
TORTS AND DAMAGES
Q: What is the doctrine of res ipsa loquitur?
(1) The accident would not have occurred in the absence of NEGLIGENCE;
(2) The injury is caused by the instrumentality w/in the exclusive CONTROL of defendants;
(3) No contributory negligence of the plaintiff
Q: What is the concept of vicarious liability?
A: A person is made liable not only for torts committed by himself, but also for torts committed by others with whom he has
certain relationship and for whom he is responsible. It covers not only civil obligations arising from quasi-delict but also
those criminal offenses covered by Art 101 of the RPC.
Q: When will an employer be liable for the tortious acts of his employee?
A: The employer will be held liable for damages if they are caused by their employees performing functions or acting
within the scope of their assigned tasks at the time of the commission of the tortious act or negligence. He will also be
liable if the injury caused by his employee was in furtherance of the employers interests even though committed neither in
the service of the branches nor on the occasion of their functions. Whenever an employees negligence causes damage
or injury to another, there instantly arises a presumption that the employer failed to exercise the due diligence of a good
father of the family in the selection or supervision of its employees
Q: Under what authority does school administrators may exercise control over school children?
A: It is special parental authority assumed over the minor for whose acts or omissions those given such authority and
responsibility are principally and solidarily liable for damages, with the parents, judicial guardians, or the persons
exercising substitute parental authority, being subsidiarily liable.
Q: When will the owner of a vehicle be liable in case of damage/ injury to other persons?
A: This covers owners of motor vehicles for private use. If the causative factor, the owner of the car, who was present,
could likewise be held liable if he could have prevented the mishap by the exercise of due diligence.
Q: Will injury suffice in order for one to claim damages?
A: Injury alone does not give petitioner the right to recover damages; he must also have a right of action for the legal
wrong inflicted by the respondents
Q: When will actual damages be awarded?
A: One is entitled to an adequate compensation only for such pecuniary loss suffered by him as he has duly proved.
Q: When will exemplary damages be awarded?
A: Exemplary damages may be granted if the defendant acted with gross negligence. It is given by way of example or
correction for the public good. (Sps. Fernando and Lourdes Viloria vs. Continental Airlines, Inc.,G.R. No. 188288. January
16, 2012.)

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Q: What are the items of damages that the heirs may recover when death occurs as a result of the crime?
A:
(1)
(2)
(3)
(4)
(5)

indemnity for death;

indemnity for loss of earning capacity;
moral damages for mental anguish;
exemplary damages if w/ aggravating circumstances;
attys fees & expenses of litigation (if w/ separate civil action to recover civil liability and when exemplary damages
are awarded; and
(6) interest

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