Professional Documents
Culture Documents
Ateneo Civil Law 2012
Ateneo Civil Law 2012
BAR REVIEWER
FACULTY ADVISER
ACADEMICS HEAD
SUBJECT HEADS
CIVIL LAW
Table of Contents
PRELIMINARY TITLE
5
1. Effect and Effectivity of Law
2. Human Relations
PERSONS
8
==============================
=====
A. General Provisions
B. Natural Persons
C. Juridical Persons
D. Domicile
E. Marriage
F. Legal Separation
G. Rights and Obligations Between Husband and
Wife
H. Property Relations Between Husband and Wife
I. The Family
J.
Family Home
K. Paternity and Filiation
L. Adoption
M. Support
N. Parental Authority
O. Funerals
P. Surname
Q. Absence
R. Civil Register
PRESCRIPTION
78
==============================
=====
PROPERTY
37
==============================
=====
A. Classification of Property (Arts. 414-418, CC)
B. Ownership (Arts. 427-439, CC)
C. Accessions
D. Quieting Title
E. Co-ownership
F. Condominium Act (RA 4726)
G. Possession
H. Usufruct
I. Easements
J. Modes Of Acquring Ownership
K. Occupation
L. Intellectual Creation
M. Donation
N. Other Modes of Acquiring Ownership
O. Nuisance
CONTRACTS
109
==============================
=====
A. Definition
B. No Prescription Applicable
C. Prescription or limitation of actions
D. Interruption
OBLIGATIONS
82
==============================
=====
A. Definition
B. Elements of an Obligation
C. Different Kinds of Prestations
D. Classification of Obligations
E. Sources of obligations (Arts. 1156-1157)
F. Nature and Effect of Obligations
G. Kinds of Civil Obligations
H. Joint and Solidary Obligation
I. Extinguishment of Obligations
Page 3 of 401
G.
Transfer of Ownership
H. Risk of Loss
I. Documents of Title
J. Remedies of an Unpaid Seller
K. Performance of Contract
L. Warranties
M. Breach of Contract
N. Extinguishment of the Sale
O. The Subdivision and Condominium Buyers'
Protective Decree
P. The Condominium Act
SUCCESSION
155
==============================
=====
A. General Provisions
B. Testamentary Succession
C. Legal or Intestate Succession
D. Provisions Common to Testate and Intestate
Succession
E. Partition and distribution of estate
LEASE
199
==============================
===
A. Lease of Things
B. Lease of Work or Services
C. Lease of Rural and Urban Lands
D. Contract for Piece of Work
E. Rights and Obligations of Lessor and Lessee
PARTNERSHIP
205
==============================
===
A. Contract Of Partnership
B. Rights and Obligations of Partnership
C. Rights and Obligations of Partners Among
Themselves
D. Obligations of Partnership/Partnership to Third
Persons
E. Dissolution
F. Limited Partnership
AGENCY
221
==============================
===
A. Definition of Agency
B. Powers
C. Express V. Implied Agency
D. Agency By Estoppel
Page 4 of 401
A.
General Considerations
B. Actual and Compensatory Damages
C. Moral Damages
D. Nominal Damages
E. Temperate or Moderate Damages
F. Liquidated Damages
G. Exemplary or Corrective Damages
H. Damages in Case of Death
I. Graduation of Damages
J. Miscellaneous Rules
Page 5 of 401
Page 6 of 401
CIVIL LAW
When Laws Take Effect (art.2)
================================
Page 7 of 401
4.
5.
6.
7.
Remedial statutes
Curative statutes
Emergency laws
Laws creating new substantive rights
h) Computation of Time
Legal Periods (Art. 13, as amended by Sec.
31, EO 292)
Year = 12 months; Month = 30 days, unless
referring to a specific calendar month; Day = 24
hours; Night = sunset to sunrise
i)
LAW
Judicial Decisions
&
Applicability
of
Penal Laws
Matters/Perso
ns Bound
All those who
live or
sojourn in
Philippine
territory
Status
Laws
(relating to
family rights
and duties,
status, legal
capacity)
Property
Laws
Citizens of
the
Philippines,
including
those living
abroad
Laws on
Forms and
Solemnitie
s
Forms and
solemnities
of contracts,
wills, public
instruments
j)
Real and
personal
property
Principle/
Doctrine
Principle of
Territoriality:
follow laws of the
place where
crime was
committed
Principle of
Nationality:
follow ones own
national laws
2. HUMAN RELATIONS
a) Application
Page 8 of 401
PRINCIPLE OF ABUSE OF RIGHTS (ART. 19) When ones right is exercised for the purpose of
prejudicing or injuring another
Requisites/ Elements:
1. There is a legal right or duty
2. Which is exercised in bad faith
3. For the sole intent of prejudicing or injuring
another
Requisites:
1. Defendant has been enriched
2. Plaintiff suffered a loss
3. Unjust Enrichment of defendant is without
just or legal ground
4. Plaintiff has no other action based on
contract, quasi-contract, crime, or quasi-delict
Personal
Dignity
and
Page 9 of 401
f)
Page 10 of 401
I.
PERSONS
==============================
===================
CAPACITY TO ACT
Power to do act with
legal effects
Active
Merely acquired
Lost through death and
other causes
Cannot exist without
juridical capacity
Can be restricted,
modified, or limited
2. Restrictions
(Art. 38)
on
Capacity
to
(MInD - ICIP)
Do not exempt the incapacitated person from
certain obligations
1. Minortiy
Act
2. Insanity
3. State of being Deaf-mute
4. Imbecility
5. Civil Interdiction
6. Prodigality state of squandering money or
property with a morbid desire to prejudice the
heirs of a person (Martinez v. Martinez, 1 Phil.
182)
B. NATURAL PERSONS
NATURAL PERSONS
Natural Persons
A human being, has
physical existence
Product of
procreation
V. JURIDICAL PERSONS
Juridical Persons
Exists only in
contemplation of law
Product of legal
fiction
by
birth,
2. Rules on Survivorship
Doubts as to Order of Death: As between two
or more persons called to succeed each other, if
there is doubt as to which of them died first,
whoever alleges the death of prior to the other
Page 11 of 401
C. JURIDICAL PERSONS
1. Who are Juridical Persons
Civil Personality, Juridical Persons (Arts. 4447)
1. The state and its political subdivisions
2. Other corporations, institutions, and
entities for public interest or purpose,
created by law
3. Corporations,
partnerships,
and
associations for private interest or
purpose
2. When Personality Begins and Ends
Creation: (1) and (2) are created by the
laws creating or recognizing
them, private corporations are
governed by the Corp. Code (B.P.
68)
and
partnership
and
associations are governed by the
provisions of the New Civil Code
on partnerships
Extinguished: by termination of existence
CITIZENSHIP
In the Philippine jurisdiction, what is followed
is the concept of jus sanguinis (citizenship by
blood) as opposed to jus soli (citizenship by
place of birth)
D. DOMICILE
DOMICILE ( Arts. 50-51)
For natural persons, it is the
place of habitual residence
For juridical persons, it is where
their
legal
representation
is
established or where they exercise
their principal functions (when the
================================
Page 12 of 401
==============================
==================
E. MARRIAGE
1. CONCEPT
Marriage is
1. A special contract
2. of permanent union
3. Between a man and a woman
4. Entered into in accordance with law
5. For the establishment of conjugal and
family life
Page 13 of 401
4.
Marriage
among
Muslims
or
among
members of ethnic cultural communities
in accordance with their customs
5. Marriage between persons who have lived
together as husband and wife for at least
five years and without any legal impediment
to marry each other
Requisites:
a. Man and woman must have been
living together as husband and wife
for at least five years before
marriage
b. The parties must have no legal
impediment to marry each other
c. The fact of absence of legal
impediment between the parties
must be present at the time of
marriage
d. The parties must execute an
affidavit stating that they have lived
together for at least five years (and
are without legal impediment to marry
each other)
e. The
solemnizing
officer
must
execute a sworn statement that he
had ascertained the qualifications of
the parties and that he had found no
legal impediment to their marriage
3.
Marriage at a house or place designated by
the parties in a sworn statement upon
their written request to the solemnizing
officer
OTHER REQUIREMENTS:
Either or Both
Requires
Parties
18 years old and Parental consent
above but below 21
Marriage counseling
21 years old and Parental advice
above but below 25
Marriage counseling
Lack
of
consent
Lack
of
advice or
counselling
EFFECTS
parental Marriage is VOIDABLE
parental
marriage
NO EFFECT on th
validity of marriage
However, this will
suspend the issuance
of the marriage
license for 3 months
from the completion of
publication
If they get married
during the 3-month
period without a
license, the
marriage shall be
VOID
If they are able to
obtain a license
during the 3-month
period, the
marriage will still
be valid but civil
and criminal
liability may
attach.
3. NON-ESSENTIAL REQUIREMENTS
Marriage Certificate
While a marriage certificate is considered the
primary evidence of a marital union, it is not
regarded as the sole and exclusive evidence of
marriage. Jurisprudence teaches that the fact of
marriage may be proven by relevant evidence
other than the marriage certificate. Hence, even
a persons birth certificate may be recognized as
Page 14 of 401
5. VOID MARRIAGES
a) Void ab initio under Art. 35
b) Foreign Divorce
Divorce by Foreigner-Spouse:
If a Filipino is married to a foreigner and the
latter subsequently obtains a valid divorce
abroad capacitating him/her to remarry, the
Filipino spouse shall likewise have the
capacity to remarry under the Philippine law.
(Art. 26, par. 2)
Requisites:
a.) There is a valid marriage that had been
celebrated between Filipino citizen and a
foreigner
b.) A valid divorce is obtained abroad by
the alien spouse capacitating him or her
to remarry
The traditional rule applies when parties at the
time of celebration are a Filipino and an alien
BUT
This includes cases involving parties who, at
the time of the celebration of the marriage,
Page 15 of 401
Marriage
contracted by a person whose spouse has
been absent for 4 years (ordinary
absence) or 2 years (extraordinary
absence), where such person has a well
founded belief that his/her absent spouse
is already dead, and after the absent
spouse
is
judicially
declared
presumptively dead, and at the time of
the marriage ceremony is in good faith
together with the subsequent spouse
5. Mistake in identity
The contemplated mistake here refers
to the actual physical identity of the
other party, and not merely mistake in
the name, character, age, or other
attributes of the person.
6. Subsequent marriage void under Art. 53
- A person whose marriage has been
annulled may remarry as long as after
the marriage is annulled, the properties
of the spouses must be partitioned and
distributed
and
the
presumptive
legitimes of the children be distributed.
Furthermore,
the
judgment
of
annulment or absolute nullity, the
partition and distribution, and the
delivery of the presumptive legitimes
must be recorded in the appropriate
civil registry and registries of property.
Failure to comply with these requisites
will make the subsequent marriage
void ab initio. Further, failure to record
in the proper registries will mean that
such will not affect third persons (Arts.
52-53)
NOTE: The enumeration of void marriages under
Art. 35 is not exclusive.
b) Void under Art. 36
Where any of the parties, who at the time of the
celebration of the marriage, was psychologically
incapacitated to comply with the essential marital
obligations, even if incapacity becomes manifest
only after solemnization.
Page 16 of 401
Page 17 of 401
Subsequent
Marriage
Without
Judicial Declaration of Nullity of
Previous Void Marriage (Art. 40)
Page 18 of 401
6. ANNULLABLE MARRIAGES
Grounds for Annulment (art. 45): (PUFFIS)
1. Lack of parental consent
2. Either party is of unsound mind
3. Fraudulent means of obtaining consent of
either party
Circumstances
constituting
fraud:
(Art. 46)
a. Non-disclosure of conviction by
final judgment of crime involving
moral turpitude
b. Concealment of pregnancy by
another man
c. Concealment
of
sexually
transmissible disease, regardless
of nature, existing at the time of
marriage
d. Concealment of drug addiction,
habitual
alcoholism,
homosexuality and lesbianism
4. Force, intimidation or undue influence
5. Physical incapability of either party to
consummate the marriage with the other,
and such incapacity continues and
appears to be incurable
Requisites of Annulment due to
Impotence:
a. Impotence exists at the time of the
celebration of marriage
b. Permanent
Page 19 of 401
c. Incurable
d. Unknown to the other spouse
e. The other spouse must not also be
impotent
Doctrine of Triennial Cohabitation:
Presumption that the husband is
impotent should the wife still remain a
virgin after 3 years of living together
with her husband.
6. Affliction
of
Sexually
Transmissible
Disease found to be serious and which
appears incurable
Elements:
a. Existing at the time of marriage
b. Sexually transmissible disease
c. Serious
d. Appears incurable
ARTICLE 45
The STD is a ground
for annulment
The STD does not
have to be concealed
ARTICLE 46
The STD is a type of
fraud which in turn is a
ground for annulment
The
STD
must
be
concealed
Page 20 of 401
Insanity
of
(INSANITY)
one
party
party
b. Parent or guardian
Sane spouse
2 views:
Sempio-Diy:
RATIFICATION
Insane spouse
Fraud
Injured Party
Vitiated consent
Injured Party
Incapability to Consummate/
Sexually transmissible disease
(CONSUMMATE/STD)
Injured Party
Free
cohabitation
even
with
full
knowledge of facts constituting the
fraud
Free cohabitation after the cause (force,
intimidation,
undue
influence)
disappeared or ceased
*intimidation can be on the person or the
property of the injured party and his/her
immediate family
No ratification since defect is permanent.
Page 21 of 401
BASIS
Status of
children
Property
Relations
Donations
Propter
Nuptias
Insurance
Successio
n
Page 22 of 401
BASIS
As to nature
As to susceptibility to
ratification
As to effect on property
As to effect on children
aa
aa
a.
b.
c.
Page 23 of 401
7.
PROCEDURE
AND
EFFECTS
TERMINATION OF MARRAIGE
2. Insanity
b.NoConsent
Party
a. Sane
spouse
without
knowledge of
insanity
b. Relative,
guardian or
person having
b. Within 5
years after
reaching 21
a. Anytime
before death
of either party
b. Anytime
before death
of either party
3. Fraud
c. Insane
spouse
Injured Party
4. Vitiated
Consent
Injured Party
5.
Incapability to
Consummate/
Sexually
Transmitted
Disease
Injured Party
OF
legal charge
of insane
OF
c. During lucid
interval or
after
regaining
sanity
Within 5 years
from
discovery of
fraud
Within 5 years
from time of
force,
intimidation or
undue
influence
disappeared
or ceased
Within 5 years
after the
marriage
ceremony
Page 24 of 401
C. Service of Summons
Governed by the Rule 14 of the Rules of
Court and the following:
1. Respondent cannot be located at his
given address or his whereabouts are
unknown and cannot be ascertained by
diligent inquiry:
(a) Service of summons by publication once
a week for 2 consecutive weeks in a
newspaper of general circulation in the
Philippines and in such places as the
court may order
(b) Served at respondents last known
address by registered mail or any other
means the court may deem sufficient
2. Summons to be published shall be
contained in a court order with the
following data:
(a) title of the case
(b) docket number
(c) nature of the petition
(d) principal grounds of the petition and the
reliefs prayed for
(e) a directive for the respondent to answer
w/in 30 days from the last issue of the
publication
D. Motion to Dismiss: not allowed, except
for lack of jurisdiction over the subject matter
or over the parties (however, any ground that
might warrant a dismissal may be raised as an
affirmative defense in an answer)
E. Answer
Verified by the respondent himself &
filed w/in 15 days from service of
summons or w/in 30 days from the last
issue of publication in case of service of
summons by publication
Failure to answer shall NOT make him in
default
Court will order the public prosecutor to
investigate if there is collusion if no
answer is filed or when answer does not
tender an issue
Page 25 of 401
Pre-trial conference
Court may refer issues to mediator,
but should this fail or is not availed of,
proceed with pre-trial conference
Pre-trial order
1. Parties are not allowed to raise
issues or present witnesses and
evidence other than those stated in
the pre-trial order
2. Parties have 5 days from receipt of
pre-trial order to make corrections
or modifications
3. Public prosecutor shall appear for
the State to prevent collusion
J. Prohibited Compromise
(a) Civil status of persons
(b) Validity of marriage or legal separation
(c) Any ground for legal separation
(d) Future support
(e) Jurisdiction of courts
(f) Future legitimes
K. Decision
Copies will be served on the parties,
including
the
SolGen
and
public
prosecutor
Final after expiration of 15 days from
notice to the parties
Should be registered in the Civil Registry
where the marriage was celebrated and in
the Civil Registry of the place where the
Family Court is located
L. Appeal
Not
allowed
if
no
motion
for
reconsideration or new trial is made
w/in 15 days from notice of judgment
M. Death
Party dies before entry of judgment:
case closed and terminated w/o
prejudice to the settlement of the estate
in proper proceedings in the regular
courts
F. LEGAL SEPARATION
1. Grounds
2. Procedure
3. Defenses
4. Liquidation
5. Effects of Legal Separation
Pendente Lite
6. Reconciliation Effects
========================
==================
1. GROUNDS
(PRC-FAL-BILA)
1. Repeated physical violence or grossly
abusive conduct directed against petitioner,
a common child or a child of the petitioner
2. Physical violence or moral pressure to
compel the petitioner to change religious or
political affiliation
3. Attempt of respondent to corrupt or induce
the petitioner, a common child, or a child of
the petitioner, to engage in prostitution, or
connivance
in
such
corruption
or
inducement
4. Final judgment sentencing respondent to
imprisonment of more than 6 years (even if
pardoned)
5. Drug addiction or habitual alcoholism
6. Lesbianism or homosexuality
7. Subsequent bigamous marriage
8. Sexual infidelity or perversion
9. Attempt by respondent against the life of
the petitioner
10. Abandonment for more than 1 year without
justifiable cause
Grounds to Deny Legal
Separation/Defenses to Legal Separation:
(C4-D-GRP)
1. Condonation
failure of the husband to look for his
adulterous wife is not condonation to
wifes adultery
2. Consent
3. Connivance
4. Collusion
5. Mutual guilt
6. Prescription action for legal separation
must be filed within five years from the time
of the occurrence of the cause of action
Page 26 of 401
7.
from
the
============================
====================
Page 27 of 401
If benefit accrued to
the family before the objection, the
resulting obligation shall be enforced
against the separate property of the spouse
who has not obtained consent
If benefit accrued to the family after the
objection has been made, the resulting
obligation shall be enforced against the
community property
============================
====================
2. MARRIAGE SETTLEMENT
3. DONATIONS BY REASON OF
MARRIAGE (Donations Propter
Nuptias)
Before Marriage
General Rule: Future spouses cannot donate
to each other more than 1/5 of their present
property (excess shall be considered void)
Requisites:
1. Made before celebration of marriage
2. In celebration of marriage
3. In favor of one or both future spouses
Exception: If they are governed by ACP
During Marriage
General Rule: Donations made by spouses to
each other during the marriage are VOID
REASON:
1. To protect unsecured creditors from
being defrauded
2. To prevent stronger spouse from
imposing upon the weaker one the
transfer of the latters property to the
former
3. To prevent indirect modification of the
marriage settlement
Exceptions:
1. Moderate gifts on the occasion of any
family rejoicing
Page 28 of 401
n
Prescriptive Periods for Filing Action for
Revocation of Donation Propter Nuptias
(Based on Sta. Maria)
If marriage is not
5 years (Art. 1149
celebrated
NCC) from the time
(Except: donations in
marriage is not
marriage settlements
solemnized on the
automatically void if
fixed date
marriage not
celebrated)
If marriage is judicially
declared void, it
depends:
(a) If subsequent
marriage is void
pursuant to Art. 40 in
relation to Arts. 52
and 53, because
contracted by a
spouse before prior
void marriage is
judicially declared void
(b) Judicially declared
void on grounds other
than Art. 40 in relation
to Arts. 52 and 53
When marriage takes
place without the
required parental
consent
If resolutory condition
is complied with
When marriage is
annulled and donee in
bad faith
If donee commits an
act of ingratitude
In cases of legal
separation
By operation of law if
donee-spouse
contracted subsequent
void marriage in bad
faith
5 years from
happening of condition
5 years from finality of
decree
1 year from donors
knowledge of that fact
5 years from the time
the decree of
separation has become
final
4. PROPERTY RELATIONS
(acp)
a.
Page 29 of 401
4.
E
NOTE: Shall commence at the precise moment
that the marriage is celebrated. Any stipulation,
express or implied, for the commencement of
the regime at any other time shall be VOID.
No waiver of rights allowed during the marriage
except in case of judicial separation of property.
The waiver must be in a public instrument.
5.
6.
7.
Property acquired during the marriage, whether
acquisition appears to have been made in the
name of one or both spouses, is PRESUMED to
belong to the community.
General Rule: The community property
consists of all the property owned by the
spouses at the time of the celebration of the
marriage or acquired thereafter.
Exceptions/Exclusions from Community
Property:
1.
Property acquired
before the marriage by either spouse who
has legitimate descendants by a former
marriage and its fruits and income
2.
Property
for
personal and exclusive use, except jewelry
3.
Property acquired
during the marriage by gratuitous title,
except when the donor, testator, or grantor
expressly provides otherwise
Encumbrance
or
disposition
of
the
community property without the consent of
the other spouse is totally void. Benefit to
the family must always be proven.
Homeowners Savings & Loan Bank vs.
Dailo, G.R. No. 153802, March 11, 2005
8.
9.
Page 30 of 401
7.
T
2. Everything acquired by spouses through
their efforts
3. Everything acquired by spouses through
chance
Shall commence at the precise moment
that the marriage is celebrated. Any
stipulation, express or implied, for the
commencement of the regime at any other
time shall be VOID.
Page 31 of 401
9.
Separation of Property
Page 32 of 401
1.
O
4. Abandonment or
failure to comply
with marital
obligations
5. Spouse abused
power of
administration
granted
6. At the time of
petition, spouses
have been separated
in fact for at least
one year and
reconciliation is
highly improbable
GROUNDS FOR
REVIVAL OF
FORMER
PROPERTY REGIME
2. Civil interdiction
terminates
2. Absent spouse reappears
3. Parental authority
judicially restored
7. When after
voluntary dissolution
of the ACP or CPG
has been judicially
decreed, spouses
agree to revive
former regime (no
subsequent
voluntary separation
may be granted)
GROUNDS FOR TRANSFER OF
ADMINISTRATION OF EXCLUSIVE
PROPERTY OF EITHER SPOUSE: (GACA)
Page 33 of 401
through joint
efforts
If one party did
not participate
in acquisition,
presumed to
have
contributed
through care
and
maintenance of
family and
household
or industry shall
be owned by them
in common in
proportion to their
respective
contributions.
Properties owned
in common shall
be presumed to be
equal; however,
proof may be
shown to show
that their
contribution and
respective shares
are not equal.
===========================
===================
FAMILY - basic social institution which public
policy cherishes and protects
Hence, no suit between members of the
family shall prosper unless earnest efforts
towards a compromise have been made but
failed.
Allegation
of
earnest
efforts
is
JURISDICTIONAL, if it is absent, the court can
dismiss the case. BUT this rule is
inapplicable to the following cases: (CLVFJF)
1. Civil status of persons
2. Any ground for legal separation
3. Validity of marriage or legal separation
4. Future support
5. Jurisdiction of courts
6. Future legitime
FAMILY RELATIONS INCLUDE:
1. Between husband and wife
2. Between parents and children
3. Among other ascendants and descendants
4. Among brothers and sisters, full or half
blood
============================
====================
===========================
===================
============================
====================
1. MANNER OF CONSTITUTION
GUIDELINES:
1. FH is deemed constituted from time of
actual occupation as a family residence
Page 34 of 401
2.
2.
H
2. QUALIFIED PROPERTY
Actual value of the family home shall not
exceed P300,000 in URBAN areas and P200,000
in RURAL areas (Art.157)
3. EXEMPTION FROM EXECUTION
General Rule: (Art. 153) The family home
(FH) is exempted from:
1. Execution
2. Forced Sale
3. Attachment
Exceptions: (Art. 155)
1. Non-payment of taxes
2. Debts incurred prior to constitution of home
3. Debts secured by mortgages on the
premises
4. Debts due laborers, mechanics, architects,
builders, materialmen, and others who have
rendered service or furnished materials for
the construction of the building
NOTE: The exemption is limited to the value
allowed by the Family Code
4. SALE
Sale, Alienation, Donation, Assignment, Or
Encumbrance Of The Family Home
1. The person who constituted the same must
give his/her written consent
2. The spouse of the person who constituted
the family home must also give his/her
written consent
3. A majority of the beneficiaries of legal age
must also give their written consent
4. In case of conflict, the court shall decide
Requisites For Creditor To Avail Of The
Right To Execute: (Art. 160)
1. He must be a judgment creditor
Page 35 of 401
============================
====================
1.KINDS OF FILIATION
2.CHILDREN BY NATURE
a. Legitimate Children
LEGITIMATE CHILDREN -are those conceived
OR born during a valid marriage.
INCLUSIONS: Those children who are:
1. Conceived
as
a
result
of artificial
insemination
2. Born of a voidable marriage before decree
of annulment
3. Conceived or born before judgment of
annulment or absolute nullity under Art. 36
(psychological incapacity) becomes final &
executory
4. Conceived or born of a subsequent
marriage under Art. 53 (failure to record the
judgment, partition and distribution of
properties, and delivery of childrens
presumptive legitime)
5. Of mothers who may have declared against
their legitimacy or was sentenced as an
adulteress (Art.167)
6. Legally adopted
7. Legitimated, conceived and born outside of
wedlock of parents without impediment at
the
time
of
conception
and
who
subsequently married
b. Illegitimate Children
ILLEGITIMATE
CHILDREN
-are
those
conceived AND born outside a valid marriage.
Exceptions: Those children who are:
1. Born of marriages which are void ab initio
such as bigamous and incestuous marriages
and void marriages by reason of public
policy
2. Born of voidable marriages born after the
decree of annulment
c. Legitimated Children
REQUISITES FOR LEGITIMATION:
1. The child was conceived and born outside of
wedlock
2. The parents, at the time of childs
conception, were not disqualified by any
impediment to marry each other
3. There is a valid marriage subsequent to the
childs birth
Must be
certificate
Page 36 of 401
2.
2.
2.
Any other evidence allowed by the Rules of
Court and special laws
b. To impugn filiation
WHO MAY IMPUGN THE LEGITIMACY OF A
CHILD:
General Rule: Only the husband can impugn
the legitimacy of a child
Exceptions: The heirs of the husband may
impugn the childs filiation in the following
cases:
a. If the husband dies before the expiration of
period for filing the action
b. If the husband dies after filing without
desisting
c. If the child was born after the death of the
husband
Page 37 of 401
L
GROUNDS TO IMPUGN THE LEGITIMACY OF
THE CHILD: (EXCLUSIVE LIST) (PBA)
1. It was physically impossible for the husband
to have sexual intercourse with his wife
within the first 120 days of the 300 days
which immediately preceded the birth of
the child because of:
a. Physical incapacity of the husband to
have sexual intercourse with his wife
b. Fact that the husband and wife were
living separately in such a way that
sexual intercourse was not possible, or
c. Serious illness of the husband which
absolutely prevented intercourse
2. If its proved that for biological or other
scientific reasons, the child could not have
been that of the husband, except in the
case of children conceived through artificial
insemination
3. In case of children conceived through
artificial insemination, when the written
authorization or ratification of either parent
was obtained through mistake, fraud,
violence, intimidation, or undue influence
PERIODS FOR FILING OF ACTION TO
IMPUGN LEGITIMACY:
1. If the husband (or his heirs, in proper cases)
resides in the SAME city or municipality:
within 1 year from knowledge of the birth
OR its recording in the civil register
2. If the husband (or his heirs) does NOT
RESIDE in the city or municipality where the
childs birth took place or was recorded BUT
his residence is IN THE PHILS.: within 2
years
3. If the childs birth took place or was
recorded in the PHILS. while the husband
has his residence ABROAD, or vice-versa:
within 3 years
NOTE:
The period shall be counted from the
knowledge of the childs birth or its
recording in the civil register.
HOWEVER, if the childs birth was
concealed from or was unknown to the
husband or his heirs, the period shall be
counted from the discovery or knowledge of
the birth of the child or of the act of
registration of said birth, whichever is
earlier.
4. RIGHTS OF
LEGITIMATE/LEGITIMATED/ILLEGITIMATE
CHILDREN
RIGHTS OF LEGITIMATE AND ILLEGITIMATE
CHILDREN
LEGITIMAT
BASIS
ILLEGITIMATE
E
Surname
Use of
Use of mothers
father and
surname
mothers
NOTE: R.A. 9255
surname
amended Art. 176
of FC as of March
19, 2004 can
Page 38 of 401
use fathers
surname
Legitime
Support
Action for
claim for
legitimacy
or
illegitimacy
Transmissi
ble to heirs
under
Art.173?
Right to
inherit ab
intesto
Entitled to
legitime and
other
successional
rights
granted to
them by the
NCC
Entitled to
receive
support
from
parents,
ascendants,
and in
proper
cases,
brothers and
sisters
under Art.
174
Entitled only to
of legitime of
legitimate child
Receive support
according to the
provision of the FC
His/her
whole
lifetime
regardless
of type of
proof
provided
under Art.
172
His/her whole
lifetime
regardless of
type of proof
provided under
Art.172 par. 1
ONLY lifetime of
alleged parent
for Art. 172 par.
2
Yes
No
Yes
No right to inherit
ab intesto from
legitimate
children and
relative of father
and mother under
Art. 992 NCC
NOTE:
Use the surname of the mother if the
requisites of R.A. 9255 are not complied
with
Use the surname of the father if the childs
filiation has been expressly recognized by
the father, either through:
1. Record of birth in civil register
2. Fathers admission in public document
3. Fathers
admission
in
private
handwritten document (R.A. 9255, Sec. 1,
effective March 19, 2004)
NOTE: The father under R.A. 9255, Sec. 1
has the right to file an action to prove nonfiliation during his lifetime.
===========================
==================
AND
Page 39 of 401
3.
3.
QUALIFICATIONS
DISQUALIFICATIONS OF ADOPTED
AND
1. CONSTRUCTION
2.
QUALIFICATIONS
DISQUALIFICATIONS OF ADOPTER
AND
Page 40 of 401
and clearance
accountabilities
of
his/her
financial
3.
QUALIFICATIONS
DISQUALIFICATIONS OF ADOPTED
AND
4.
EFFECTS OF ADOPTION:
1. Severance of all legal ties between the
biological parents and the adoptee and the
same shall then be vested on the adopters
EXCEPT in cases where the biological parent
is the spouse of the adopter
2. Deemed a legitimate child of the adopter
3. Acquired reciprocal rights and obligations
arising from parent-child relationship
4. Right to use surname of the adopter
5. RULES ON SUCCESSION
In legal and intestate succession, the adopters
and the adoptee shall have reciprocal rights of
succession without distinction from legitimate
filiation. However, if the adoptee and his/her
biological parents had left a will, the law on
testamentary succession shall govern.
6. RECISSION OF ADOPTION
GROUNDS FOR RECISSION OF ADOPTION:
(MASA)
1. Repeated physical and verbal maltreatment
by the adopters despite having undergone
counseling
2. Attempt on the life of the adoptee
Page 41 of 401
3.
a. Spouses
b. Ascendants
and
Descendants
c. Parents
and
Legitimate/Illegitimate
Children/Descendants
d. Legitimate/Illegitimate
Brothers and Sisters
RULES REGARDING SUPPORT TO
ILLEGITIMATE BROTHERS AND SISTERS
(WHETHER FULL OR HALF BLOOD):
1. If the one asking for support is below
majority age, he is entitled to support from
his illegitimate brother or sister to the full
extent, without any condition
2. If the one asking for support is already of
majority age, he is entitled to support only if
his need for support is not due to a cause
imputable to his fault or negligence (Art.
196)
PROPERTIES THAT ARE LIABLE FOR THE
SUPPORT OF THE RELATIVES (SOURCES
OF MUTUAL SUPPORT)
Spouses
Page 42 of 401
Absolute community
of conjugal
partnership
Common children of
the spouses
Children of a spouse
by another marriage
Illegitimate children
of either spouse
Legitimate
ascendants, other
legitimate and
illegitimate
descendants, and
legitimate and
illegitimate brothers
and sisters
Absolute community
or conjugal property
Absolute community
or conjugal property
Under ACP, separate
property of parentspouse. But if
insufficient, absolute
community liable but
considered as
advances on the
share of the parent to
be paid during
liquidation
Under CPG, separate
property of parentspouse. But if
insufficient, conjugal
partnership liable if
financially capable,
but support paid shall
be deducted from
share of spouse
during liquidation
Separate property of
the obligor-spouse
if the same is not
sufficient or there is
none, the absolute
community or
conjugal property
shall be liable if
financially capable,
which support shall be
deducted from the
share of the spouse
upon liquidation of the
ACP or CPG
2. CONTRACTUAL SUPPORT
3. BASIS OF SUPPORT
LEGACY OF SUPPORT
Based on law
CONTRACTUAL
SUPPORT
Based on contract, so it
can be between
strangers
If contained in a will,
apply the rules of
contractual support
because there is no
more obligation of
support to speak of
since the giver is
already dead
4. OPTIONS OF GIVER
Options Of The Person Giving Support:
1. To give a fixed monthly allowance; or
2. To receive and maintain the recipient in the
giver's home or family dwelling (Art. 204)
Exception to # 2: Existence of legal or moral
obstacle
ORDER OF LIABILITY IF 2 OR MORE ARE
OBLIGED TO SUPPORT:
1. Spouse
2. Descendants in nearest degree
3. Ascendants in nearest degree
4. Brothers and sisters (Art. 199)
Page 43 of 401
CHILDREN
From the
communit
y property
From the
community
property
From the
separate
property of the
spouses
============================
=================
2. OVER PERSON
RULES AS TO THE EXERCISE OF PARENTAL
AUTHORITY:
1. The father and the mother shall jointly
exercise parental authority over the persons
of their common children. In case of
Page 44 of 401
3. OVER PROPERTY
Effect Of Parental Authority Upon The
Property Of The Child:
1. The father and mother shall jointly exercise
legal guardianship over the property of the
2.
3.
minor
common
child
without
court
appointment
In case of disagreement, the fathers
decision shall prevail, unless there is judicial
order to the contrary
If the market value of the property or the
annual income of the child exceeds
P50,000, the parent is required to furnish a
bond of not less than 10% of the value of
the childs property or income
Page 45 of 401
5. SUSPENSION/TERMINATION OF
PARENTAL AUTHORITY
Grounds For Suspension Of Parental
Authority: (CHOBA)
1. Conviction of parent for crime with civil
interdiction
2. Treats child with excessive harshness and
cruelty
3. Gives corrupting orders, counsel or example
4. Compels child to beg
5. Subjects to or allows him to be subjected to
acts of lasciviousness
===================
==============
TOPIC UNDER SYLLABUS
N. Funerals (Arts. 305-310,CC)
O. Surname (Arts 364-380, CC)
P. Absence (Arts. 381-396,CC)
Q. Civil Register (Arts. 407-413,CC)
===================
==============
N. FUNERAL
General Guidelines:
Page 46 of 401
1.
O. SURNAME
USE OF SURNAME
CHILD CONCERNED
Legitimate child
Legitimated child
Adopted child
Illegitimate child
Conceived prior to
the annulment of the
marriage
Conceived after the
annulment of the
marriage
SURNAME TO BE
USED
Fathers surname
Fathers surname
Adopters surname
1. Mothers surname;
or
2. Fathers name if
they were
recognized by their
father in the record
of birth or in an
authentic writing
Fathers surname
Mothers surname
WIFE
Valid
marriag
e
Husband
is living
(Art.
370)
Husband
is dead
(Art.
373)
Wife is
the guilty
party
SURNAME TO BE USED
a. First name and
maiden name + her
husbands surname
b. First name + her
husbands surname
c. Her husbands full
name, but prefixing a
word indicating that
she is his wife, such
as Mrs
d. Retain the use of her
maiden name (use of
husbands surname is
not a duty but merely
an option of the wife)
She can use the surname
of the husband as if he
were still living
She shall resume using
her maiden name
Page 47 of 401
Between
ascendants
and
descendants
(Art.
375)
P. ABSENCE
Persons Who May Be Appointed By Way Of
Court Order As The Representative Of An
Absentee In Case Of Provisional Absence
Or As An Administrator
1. If no legal separation, the spouse present
2. If no spouse or if the spouse present is a
minor, any competent person
The
spouse
who
is
appointed
as
administratrix of the absentee spouses
property cannot alienate or encumber the
same, or that of the conjugal partnership,
without judicial authority.
When Administration Shall Cease
1. Absentee appears personally or by means
of an agent;
2. Death of the absentee is proved and his
estate or intestate heirs appear;
3. A third person appears, showing by a proper
document that he has acquired the
absentee's property by purchase or other
title
The property shall be at the disposal of
those who may have a right thereto
Page 48 of 401
STAGES
Provisional Absence
- A person disappears from
his domicile, whereabouts
are unknown and
a.
He did not
leave any agent; or
b.He left an agent but
agent's power has
expired
Judicial Declaration of
Absence
-Necessary for interested
persons to be able to
protect the interest of the
absentee
WHEN TO FILE
REMEDY
a.
No statutory period
Without administrator
- After 2 years having
elapsed without any
news
about
the
absentee or since the
last news
With administrator
- After 5 years from time
of
disappearance
Presumption of death
ORDINARY ABSENCE
a. Interested party
b. Relative
c. Friend
b.
a.
b.
Spouse
Voluntary
heirs
c.
Intestate
heirs
d.
Those who
may have over the
property of the absentee
some right subordinated
to the condition of the
absentee's death
Spouse
REVIEWER
Judicial separation of
property (Art. 12, FC)
c.
Authority to be sole
administrator of the conjugal
partnership (Art . 12, FC)
COMMENTS
In provisional
absence, the judge
at the instance of an
interested party, a
relative, or a friend
may appoint a
person to represent
him in all that may
be necessary.
Judicial declaration of
absence does not
take effect until six
months after its
publication in a
newspaper of general
circulation.
Page 49 of 401
Q. CIVIL REGISTER
MATTERS RECORDED/ENTERED IN THE CIVIL
REGISTER:
1. Acts, events and judicial decrees concerning
the civil status of persons
2. Birth
3. Marriage
4. Death
5. Legal separation
6. Annulment of marriage
7. Judgments declaring marriage void from the
beginning
8. Legitimation
9. Adoption
10. Acknowledgement of natural children
11. Naturalization
12. Loss of citizenship
13. Recovery of citizenship
14. Civil interdiction
15. Judicial determination
16. Voluntary emancipation of a minor
17. Change of name
General Rule: Entries in the civil register may be
changed or altered only upon a judicial order.
Exception: Clerical or typographical errors or
change in the name or nickname can be changed
administratively through verified petition with the
local office of the civil registrar.
Who may file petition: Any person having direct
and personal interest in any act, event, order or
decree concerning the civil status of persons or
change of name
PROCEDURAL
REQUIREMENTS
FOR
A
PETITION FOR CHANGE OF NAME:
1. 3 years residency in the province where
change is sought prior to the filing
2. Must not be filed within 30 days prior to an
election
3. Petition must be verified
PROPER AND REASONABLE CAUSES THAT
MAY WARRANT THE GRANT OF A PETITION
FOR CHANGE OF FIRST NAME/NICKNAME:
1. Petitioners true and official name is ridiculous;
2. Petitioners true and official name is tainted
with dishonor
3. Petitioners true and official name is extremely
difficult to write or pronounce
4. New first name or nickname has been
habitually and continuously used by the
petitioner and he has been publicly known by
the first names and nicknames in the
community
2. Change of first
name or nickname
legitimated
II. PROPERTY
=====================
==============
TOPICS UNDER SYLLABUS
A. Classification of Property (Arts. 414418, CC)
1. Immovable Property
2. Movable Property
3. According to Ownership
a. Public Dominion
b. Private Ownership
=====================
==============
4.
5.
6.
7.
A. CLASSIFICATION OF PROPERTY
8.
9.
1. IMMOVABLE PROPERTY
Juridical
Classification
of
Immovable
Properties: (NIDA)
1. By nature cannot be moved from place
to place because of their nature (Art. 415
par 1 & 8 NCC)
A. land, buildings, roads and constructions
of all kinds adhered to soil
a
structure
which
is merely
superimposed on the soil may be
considered movable.
B. mines, quarries, and slag dumps, while
the matter thereof forms parts of the
bed, and waters either running or
stagnant
2. MOVABLE PROPERTY
Movable Property: (SIFTOS)
1. Susceptible of appropriation that are not
included in enumeration in immovables.
Example
interest in the business is personal
property. Involuntary Insolvency of
Strochechker v. Ramirez,[44 Phil
933 (1922)]
2. Immovable that are designated as movable
by special provision of law. Examples
3.
4.
5.
6.
Growing
crops
are
considered
immovable under Art. 415(2) but
personal property by Chattel Mortgage
Law. Sibal v. Valdez, 50 Phil 512
(1927)
House built on leased land may be
treated insofar as the parties are
concerned as personal property and be
the object of a chattel mortgage.
Navarro v. Reyes,[9 SCRA 63
(1963)]
Forces of nature brought under control by
science. Examples
Electricity, gas, rays, heat, light,
oxygen, atomic energy, water power
etc.
Electricity, the same as gas, is an
article bought and sold like other
personal property and is capable of
appropriation by another. United
States v. Carlos,[21 Phil. 364
(1946)]
Things which can be transported w/o
impairment of real property where they are
fixed
Obligations which have for their object
movables or demandable sums (credits)
obligations and actions must be legally
demandable
demandable sums must be liquidated
Shares of stocks of agricultural, commercial
& industrial entities although they may
have real estate
Classification Of Movables:
1. According to nature
a. Consumable cannot be utilized w/o
being consumed
b. Non-consumable
2. According
to
intention
of
the
parties/purpose (whether it can be
substituted by other things of same kind,
quality and quantity)
a. Fungible (res fungibles) only the
equivalent is returned
b. Non-fungible (res nec fungibles)
identical thing is returned, do not admit
of substitution
Test To Determine Whether Property Is
Real Or Personal
1. Whether the property can be transported or
carried from place to place (Rule of
Description)
2. Whether such change of location can be
made without injuring the immovable to
which the object may be attached (Rule of
Description)
3.
3. ACCORDING TO OWNERSHIP
a. Public Dominion
Public Dominion outside the commerce of men.
KINDS: (USD)
A. intended for public use can be
used by the public or everybody
B. intended for specific public service
of state,
provinces,
cities
&
municipalities can be used only by
duly authorized persons, such as
government buildings and vehicles
C. for the development of national
wealth
Characteristics:
A. Outside the commerce of men
cannot be alienated or leased or be
the subject of any contract
B. Cannot be acquired by private
individual or even municipalities
through prescription
C. Not subject to attachment &
execution
D. Cannot be burdened by voluntary
easement
E. Cannot be registered under the
Land Registration Law and be the
subject of a Torrens Title
F. In general, can be used by
everybody
NOTE: Fishponds are considered as part of public
dominion and cannot be acquired by private
persons unless it is converted into patrimonial
property. However, fishponds may be leased by
the government.
Properties which the government owns for
fundamental
purposes
for
rendering
government services are properties of public
dominion. They are held by the local
governments for public service, but at the
same time, they can be removed by the State
from the LGUs without having to pay just
compensation because the LGUs are merely
acting as agents. (City of Zamboanga Del
Norte v. Province of Zamboanga Del
Norte)
b. Private Ownership
KINDS:
Patrimonial property - the property of the State
owned by it in its private or proprietary capacity,
the property is not intended for public use, or for
T
he right of the public to use the city
streets may not be bargained away
through contract. Rule: Local government
cannot withdraw a public street from public
use, unless it has been granted such authority
by law. Dacanay v. Asistio Jr.,[208 SCRA
404 (1992)]
==============================
======================
1. RIGHTS OF OWNERSHIP/LIMITATIONS
Seven Rights Of Ownership:
1. JUS ABUTENDI right to consume,
transform or abuse by its use
2. JUS ACCESIONES right to fruits and
accessories
3. JUS DISPONENDI right to dispose,
including the right not to dispose, or to
alienate
4. JUS FRUENDI right to fruits
5. JUS POSSIDENDI right to possess
does not necessarily include the right to
use (e.g. contract of deposit)
6. JUS UTENDI right to use and enjoy
Includes the right to transform and
exclude any person from the enjoyment
and disposal thereof
Limitation: use in such a manner as not
to injure the rights of a third person
7. JUS VINDICANDI right to vindicate or
recover
Limitations on the Right of Ownership:
(CLOGS)
1. those arising from conflicts of private
rights (e.g. those which take place in
accession continua)
2. those imposed by law (e.g. Legal
easement)
3. those imposed by the owner himself (e.g.
Voluntary easement, pledge, lease)
4. those imposed by the grantor of the
property on the grantee
A. by contract (e.g. donation)
B. by last will
5. those imposed in general by the State
A. police power
B. power of taxation
C. power of eminent domain
Right of Ownership not absolute
The welfare of the people is the
supreme law of the land. Salus populi
suprema est lex.
Use your property so as not to impair
the rights of other. Sic utere tuo ut
alienum non laedas.
Accion
Interdic
tal
GROUND
Forcible
entry
(detenci
on)
GROUND:
deprivation
of
possession through:
force, intimidation,
strategy, threat, or
stealth (FISTS)
De
facto
or physical
possession
Unlawfu
l
detainer
(desahui
co)
Lessor/person
having legal right
over
property
deprived
of such
when
the
lessee/person
withholding property
refuses to surrender
possession
of
property
after
expiration
of
lease/right to hold
property
Better
right
of
possession
Physical
possession
Recovery
of
dominion of property
based on ownership
OWNERSH
IP
Accion Publiciana
Accion
Reinvindicatoria
I.
IMMOVABLES
ISSUE
CAUSE
Possession
DE FACTO
PERIOD
COURT
Within 1 year
from
(1)
unlawful
deprivation, or
from
(2)
discovery,
in
case of stealth
or strategy
Within 1 year
from unlawful
deprivation:
date of last
demand or last
letter
of
demand
MTC
Within a period
of 10 years,
otherwise the
real right of
possession
is
lost
30 years
Depends
on
ASSESSE
D VALUE
MTC
Depends
on
ASSESSE
D VALUE
Injunction
- Generally not available as a remedy.
- When injunction is allowed:
A. Actions for forcible entry
B. Ejectment
- possessor admittedly the owner or in possession in concept of owner
- possessor clearly not entitled to property
- extraordinary cases where urgency, expediency and necessity so required
II. Writ of possession
PROCEEDIN
GS
Summary
proceeding
Summary
proceeding
Civil
- When proper:
A. Land registration cases
B. Foreclosure, judicial or extra-judicial, of mortgage provided that the mortgagor has
possession and no third party has intervened
C. Execution sales
D. Eminent domain proceedings
E. Ejectment
2.
DOCTRINE OF STATE OF NECESSITY
STATE OF NECESSITYis the principle which
authorizes the destruction of a property which is
lesser in value to avert the danger poised to
another property the value of which is much
greater.
REQUISITES OF STATE NECESSITY:
1. Interference necessary to avert an imminent
danger
2. Damage to another much greater than damage
to property
COMPARATIVE DANGE Danger must be
greater than damage to property. Consider
the economic and sentimental value of the
property.
MEASURE OF RATIONAL NECESSITY
the law does not require a person acting in
a state of necessity to be free from
negligence or mistake. He must be given
the benefit of reasonable doubt as to
whether he employed rational means to
avert the threatened injury.
The owner of the sacrificial property is
obliged to tolerate the act of destruction
but subject to his reimbursement by all
those who benefited.
In case of conflict between the exercise of
the right of self-help and a proper and licit
state of necessity, the latter prevails
because there is no unlawful aggression
when a person or group of persons acts
pursuant to the right given in a state of
necessity.
3. PRESUMPTION OF OWNERSHIP
a) Requisites to Raise the Disputable
Presumption of Ownership:
1. Actual possession of the property
2. Possession is under the claim of ownership
a. Possessor of property has the presumption
of title in his favor
b. Judicial process contemplated for recovery
of
property:
ejectment
suit
or
reinvindicatory action
c. The person claiming better right must
prove:
a. That he has better title to the
property
b. Identity of the property
d. One must depend on strength of his title
and not the weakness of the defense
of
b) Eminent Domain
EMINENT DOMAINis the superior right of the
State to acquire private property whether
registered or not for public use upon payment of
just compensation. It is one of the limitations of
the right of ownership.
a. Absolute necessity for expropriation is not
required.
It is enough that reasonable
necessity for public use is intended.
b. Just compensation is equivalent to the value of
the land. (Market value plus consequential
damages minus the consequential benefits)
c. The market value should be determined at the
time of the filing of the complaint or at the
time of taking of the property, whichever
transpires first.
d. The ownership over the property taken is
transferred only when the just compensation
with proper interest had been made
Elements for Taking in Eminent Domain:
(CPJD)
1. Taking done by Competent authority
a. Executive branch
b. Municipal corporations, other government
entities, and public service corporations.
2. For Public use
aa
That only a few actually benefit
does not diminish its public use
3. Owner paid Just compensation
a. Value at the time of the taking
4. Due process of law observed
Computation for Just Compensation under
Agrarian Reform
LBP v. Cruz, [G.R. No. 175175, Sept. 29,
2008]
How will the computation of just computation
applied? Section 17 of R.A. No. 6657: In
determining just compensation, the cost of
acquisition of the land, the current value of like
properties, its nature, actual use and income, the
sworn valuation by the owner, the tax declarations,
and the assessment made by government
assessors, shall be considered. The social and
economic benefits contributed by the farmers and
the farmworkers and by government to the
property as well as the non-payment of taxes or
loans secured from any government financing
institution on the said land shall be considered as
additional factors to determine its valuation.
c) Police Power
4. HIDDEN TREASURE
Concept of Treasure: (HUM)
1. Hidden and unknown
2. Unknown owner
3. Consists of Money, jewels, or other precious
objects. (not raw materials)
Right to Hidden Treasure:
1. Finder is the same as owner of the property
treasure totally belongs to him.
2. Finder is third person and he discovered it by
chance finder is entitled to one half of the
value of the treasure.
3. Finder is an intruder he is not entitled to
anything
4. Finder was given express permission by the
owner subject to the contract of service and
principle of unjust enrichment
BASIS
ACCION
REPLEVIN
Summary action to
recover material or
physical possession of
real property when a
person originally in
possession was deprived
thereof by (FISTS)
Force,
Intimidation, Strategy,
Threat, or
Stealth
UNLAWFUL
DETAINER
Action brought when
possession by a
landlord, vendor or
vendee or other
person of any land or
building is being
unlawfully withheld
after the termination
or expiration of the
right to hold
possession, by virtue
of a contract, express
or implied
MTC
MTC
Material or physical
possession of real
property
Possession de facto
Material or physical
possession of real
property
Possession de facto
Action
Prescripti
on
Quasi in Rem
1 year from
dispossession
FIT from dispossession
SS from discovery
Quasi in Rem
1 year from the time
the possession
became unlawful
last date of demand
or letter of demand
If theres a fixed
period 1 year from
the expiration of the
lease
If the reason is nonpayment of rent or
non-fulfillment of
the conditions of
the lease 1 year
from demand to
Others
In Personam
Steps:
i. Complaint is filed at
commencement or at
any time before
answer of other party
ii. Complaint should
allege OWTA (owner,
wrongfully taken,
taken against law)
iii. Pay bond double the
amount of property
FORCIBLE ENTRY
May be brought
against the owner in
some cases such as
lease
Complaint must
state FISTS or else it
would just be an
accion publiciana
which should be filed
with the RTC
ACCION
PUBLICIANA
It is the
preliminary
action to recover
a better right to
possess
RTC
REINVINDICATORIA
Action to recover
ownership of real
property
RTC
Better right of
possession of
real property.
Possession de
jure
Quasi in Rem
10 years
Ownership of real
property
2 kinds:
a) Possession not
through FISTS
- can be filed
Immediately
Accion
reinvindicatoria
can be filed
simultaneously
with FE
Judgment of
ownership usually
includes the right
of possession
b) 1 year period
for
FE or UD has
Elapsed
Page 39 of 401
Quasi in Rem
10 or 30 years
depending on
whether its ordinary
or extraordinary
prescription
iv.
Sheriff takes property
v. Doors broken if
necessary
Defendants remedy:
aa
File a bond double the
amount, and
aa
Give copy to plaintiff
Strangers remedy File a 3rd
party claim
vacate
Complaint filed 5
days after
demand
(buildings) or 15
days (land
Refers to any kind
of land
It should be
alleged that the
right to possess
had been
terminated and
that the
continued
possession was
unlawful
Not the remedy if
what is sought is
specific
performance
Demand
Necessary - if there
is a breach
Not necessary if the
fixed period just
expires
Page 40 of 401
Should
remember
Article 434. In an
action to recover
ownership, the
property must be
identified, and the
plaintiff must rely
on the strength of
his title and not
on the weakness
of the defendants
claim
================================
TOPICS UNDER THE SYLLABUS
C. Accessions
1. Accession Discreta
a. Natural Fruits
b. Industrial Fruits
c.
Civil Fruits
2. Accession Continua
a.1 Accession Industrial
i. Builder/ Planter/ Sower
(BPS) in Good Faith
ii. BPS in Bad Faith
iii. No Claim of Ownership
a.2 Accession Natural
a.3 For Personal Property
i. Adjucntion/ Conjunction
ii. Mixture
iii. Specification
================================
2.
Usufruct
3. Lease of rural lands
4. Pledge
5. Antichresis
b.
accession industrial
accession natural
2 KINDS OF ACCESSION:
PRINCIPLES:
1. Accessory follows the principal.
2. The incorporation or union must be intimate
that removal or separation cannot be
effected without substantial injury to either or
both.
3. Good faith exonerates a person from punitive
liability but bad faith may give rise to dire
consequences.
4. Bad faith of one party neutralizes the bad
faith of the other.
5. No one should enrich himself at the expense
of another.
OBLIGATIONS:
C. ACCESSION
ACCESSION is the right of the owner of a
thing, real or personal, to become the owner of
everything which is produced thereby, or which
is incorporated or attached thereto, either
naturally or artificially.
NOTE: It is NOT one of the modes of acquiring
ownership enumerated in Article 712.
spontaneous
products of the soil and the young of
animals.
b. INDUSTRIAL FRUITS those produced
by lands of any kind through cultivation
or labor.
c. CIVIL FRUITS rents of buildings, the
price of lease of lands and other property
and the amount of perpetual or life
annuities or other similar income.
GENERAL RULE: All fruits belong to the owner
of a thing.
EXCEPTIONS: (PULPA)
1. Possession in good faith by another
i.
Gathered Fruits
PLANTER
OWNER
Planter
in Good
Faith
(GF)
Keeps fruits
Planter
in Bad
Faith
(BF)
Reimbursed
for
expenses
for
production,
gathering,
and
preservation
(necessary
expenses)
No need to
reimburse the
planter of expenses
since he retains the
fruits
Gets fruits, pay
planter necessary
expenses
Page 41 of
Planter
in BF
PLANTER
Reimbursed
for expenses
for
production,
gathering,
and
preservation
Loses
everything.
No right to
reimburseme
nt
OWNER
Owns
fruits
provided he pays
planter expenses
for
production,
gathering,
and
preservation.
(forced
coownership)
Owns fruits
OM =
BF
LO = BF
(as if
both in
GF)
LO = BF
OM =
GF
Exception:
OM exercises
the right of
removal
Becomes the
owner of the
materials but
he must pay:
1. Value
2. Damages
removal
- provided no
injury to the work
constructed or
destruction of the
plantings, etc. will
be caused
1. Entitled to the
ABSOLUTE right of
removal and
damages (whether
or not substantial
injury is caused)
2. Entitled to
reimbursement
and damages (in
case he chooses
not to remove)
PLANTING V. SOWING
1.
2.
ESSENCE OF DISTINGUISHMENT
In planting: planter may be required to buy
the land.
In sowing: sower may be required to pay
rents.
to
Page 42 of
LO = GF
Builder= BF
1. Appropriate
improvements as his own
after paying for indemnity
2. Compel the builder to buy
the land where the
building has been built
Exception:
Value of land > Value of improvements
rent to be paid
If builder fails to pay the rent:
- no right of retention
- LO entitled to removal of
improvement
OPTIONS:
1. Appropriate the improvements
- must pay for:
- a. necessary expenses for the
preservation of the land
- b. damages
- no need to pay for its value or other
expenses
2. right to demolish or removal +
damages
- at the builders expense
3. compel the builder or planter to pay
the price of the land, and the sower the
proper rent + damages
- whether or not the value of the land
is considerably more than the value of
the house
BUILDER
OPTIONS:
1. Right to indemnification
a. Necessary expenses, w/ right of retention
until reimbursed
b. Useful expenses, w/ right of retention
2. Right of removal - if the thing suffers no
injury, and if his successor in the possession
does not prefer to refund the amount
expended.
Page 43 of
Parties:
1. Land owner (LO)
2. Builder, planter, sower (builder)
3. Owner of materials (OM)
Rights of LO and Builder same as set
forth in the table
Rights of OM
a. Bad faith
i. Loses all rights to be indemnified
ii. Can
be liable
for consequential
damages (as when the materials are of
an inferior quality)
b. Good faith
i. Entitled to reimbursement
ii. In case of insolvency on the part of the
builder LO is subsidiarily liable, if he
makes use of the materials.
RULES
WHEN
INVOLVED:
THREE
PARTIES
ARE
2.
Page 44 of
Page 45 of
ACCESSION
Accession
Discreta
Natural
Fruits
Spontaneous
products of the
soil,
Young and other
products of
animals
Industrial
Fruits
Accession
Continua
Real
Civil
Fruits
rents of buildings
price of leases of
land &
other property
amount of
perpetual or life
annuities or
other similar
income
Accession
Industrial
Building
Planting
Sowing
Accession
Natural
Alluvium
Avulsion
Change of course
of rivers
Formation of
islands
Personal
Adjunction/ Specification
Conjunction
(ISTEP)
Inclusion or
engraftment
Soldadura or
soldering
Tejido or weaving
Escritura or writing
Pintura or Painting
Mixed
commixtion
confusion
Accession Natural
i. Alluvium
ALLUVION - the accretion which the banks of
rivers gradually receive from the effects of the
current of the waters and which belong to the
owners of lands adjoining the said banks.
ACCRETION - act or process by which a riparian
land gradually and imperceptively receives
addition made by the water to which the land is
contiguous.
ESSENTIAL ELEMENTS:
1. Deposit or accumulation of soil or sediment
must be gradual and imperceptible.
2. Accretion results from the effects or action of
the current of the waters of the river.
3. The land where accretion takes place must
be adjacent to the bank of a river.
ii. Avulsion
of
the
OP
GF
OA
GF
=
=
Or
OP =
BF
OA =
GF
OP
=GF
OA
BF
OP
BF
OA
GF
=
=
RULES AS TO OWNERSHIP
OWNER OF
OWNER OF
PRINCIPAL
ACCESSORY (OA)
(OP)
Acquires the
May demand
accessory
reparation:
- indemnifies
a. If no injury will be
the former
caused
owner for its
b. If value of
value
accessory is greater
than principal even if damages
will be caused to
principal (expenses
is to the one who
caused the
conjunction)
1. Owns the
1. Loses the thing
accessory
incorporated
2. Right to
2. Indemnify the
damages
OP for the damages
OP may have
suffered
1. Pay OA
Right to choose
value of
between
accessory or
1. OP paying him
2. Principal
its value or
and accessory 2. That the thing
be separated
belonging to him be
PLUS
separated even
Liability for
though it be
damages
necessary to
destroy the
principal thing
ii. Mixture
MIXTURE takes place when two or more things
belonging to different owners are mixed or
combined to such extent that the components
lose their identity.
KINDS:
1. COMMIXTION mixture of solid things
2. CONFUSION mixture of liquid things
RULES:
1. Mixture by the will of the owners
. Rights governed by stipulations
. Without stipulation: each acquires a right
or interest in proportion to the value of
his material
2. Mixture caused by an owner in GF or by
chance
a. Each share shall still be in proportion to
the value of their thing
3. Mixture caused by owner in BF
a. The actor forfeits his thing
b. Liable for damages
iii. Specification
SPECIFICATION imparting of a new form to
the material belonging to another; or the making
of the material of another into a thing of a
different kind.
RULES:
1. When the maker (considered principal) is
in GF
a. May
appropriate
but
must
indemnify the owner of the
material
b. May not appropriate when
material transformed > new thing.
The OM may:
i. Appropriate the new thing
subject to the payment of
the value of the work, or
ii. Demand indemnity for the
material with damages
b. When the maker is in BF
a. OM can appropriate the work
without paying for the labor or
industry
b. OM can demand indemnity plus
damages
c. OM cannot appropriate if the value of the
work is considerably more than the value
of the material due to artistic or scientific
importance
COMPARISON OF THE 3 TYPES OF
ACCESSION OF MOVABLES
ADJUNCTION
MIXTURE
SPECIFICATION
Involves at
Involves at
Involves at least 2
least 2 things
least 2
things
things
As a rule,
As a rule,
As a rule,
accessory
coaccessory follows
follows
ownership
principal
principal
The things
joined retain
their nature
results
May either
retain or
lose
respective
natures
================================
TOPICS UNDER THE SYLLABUS
D. Quieting Title
================================
QUIETING OF TITLE is a remedy or
proceeding which has for its purpose an
adjudication that a claim of title to realty or an
interest thereon, adverse to the plaintiff, is
invalid or inoperative, or otherwise defective and
hence, the plaintiff and those claiming under him
may forever be free of any hostile claim.
Reasons:
1. Prevent litigation
2. Protect true title & possession
3. Real interest of both parties which requires
that precise state of title be known
ACTION TO QUIET TITLE
1. Puts an end to vexatious litigation in respect
to property involved; plaintiff asserts his own
estate & generally declares that defendants
claim is w/o foundation
2. Remedial
3. QUASI IN REM - suits against a particular
person or persons in respect to the res May
not be brought for the purpose of settling a
boundary disputes
4. Applicable to real property or any interest
therein. The law, however, does not exclude
personal property from actions to quiet title.
5. An action to quiet title brought by the person
in
possession
of
the
property
is
IMPRESCRIPTIBLE.
6. If he is not in possession, he must invoke his
remedy within the prescriptive period.
Classifications:
1. Remedial action to remove cloud on title
2. Preventive action to prevent the casting of a
(threatened ) cloud on the title.
Requisites: (TICR)
1.
Plaintiff must have a legal or equitable Title
or interest in the real property
2.
Cloud in such title
3.
Such cloud must be due to some Instrument,
record,
claim,
encumbrance
or
proceeding which is:
a) apparently valid
b) but is in truth invalid, ineffective, voidable
or unenforceable
c) prejudicial to the plaintiffs title
4.
Plaintiff must Return to the defendant all
benefits received from the latter or reimburse
him for expenses that may have redounded
to his benefit
NO APPLICATION TO:
1. Questions
involving
interpretation
of
documents
2. Mere written or oral assertions of claims,
EXCEPT
a. If made in a legal proceeding
b. If it is being asserted that the instrument
of entry in plaintiffs favor is not what it
purports to be
3. Boundary disputes
4. Deeds by strangers to the title UNLESS
purporting to convey the property of the
plaintiff
5. Instruments invalid on their face
6. Where the validity of the instrument involves
pure questions of law
ACTION TO REMOVE CLOUD
1. Intended to procure cancellation, delivery,
release of an instrument, encumbrance, or
claim constituting a on plaintiffs title which
may be used to injure or vex him in the
enjoyment of his title
2. Preventive
CLOUDis a semblance of title, either legal or
equitable, or a claim or a right in real property,
appearing in some legal form but which is, in
fact, invalid or which would be inequitable to
enforce.
Existence of Cloud: (AIP)
1. Instrument
or
record
or
claim
or
encumbrance or proceeding which is
Apparently valid or effective
2. BUT is, in truth and in fact, Invalid,
ineffective, voidable, or unenforceable, or
extinguished (or terminated) or barred by
extinctive prescription
3. May be Prejudicial to the title
DISTINCTIONS BETWEEN ACTION FOR
QUIETING OF TITLE AND ACTION FOR
REMOVAL OF CLOUD
BASIS
ACTION TO
ACTION TO
QUIET TITLE
REMOVE CLOUD
Purpose
To end
vexatious
litigation in
respect to the
property
concerned
Nature
Plaintiff asserts
own claim and
declares
that
the claim of the
defendant
is
unfounded and
calls
on
the
defendant
to
justify his claim
on the property
that the same
may
be
determined by
the court
Procure
cancellation,
release of an
instrument,
encumbrance or
claim in the
plaintiffs titlewhich affects the
title or enjoyment
of the property
Plaintiff
declares
his own claim and
title, and at the
same
time
indicates
the
source and nature
of the defendants
claim, pointing its
defects and prays
for the declaration
of its invalidity
================================
TOPICS UNDER THE SYLLABUS
E. Co-ownership
1. Elements
2. How Created
3. Rights of Co-owners
a. Ownership over Whole
Property
b. Sale/ Alienation
i. Of Individual Interest
ii. Of Entire Property
iii. Redemption by Other Coowners
iv. Prescription
c. Benefits/ Fruits/ Interest/
Income
d. Use/ Possession
e. Management/ Administration
4. Partition
a. Demandable Anytime
b. Prohibition for Indivision
5. Obligations of Co-owners
6. Termination
3.
3.
Succession
4.Fortuitous event/chance (i.e., commixtion)
5.Occupancy (i.e.,2 persons catch a wild
animal)
6.Donation
Kinds of Co-ownership:
1. Ordinary right of partition exists
2. Compulsory no right partition exists (party
wall)
3. Legal created by law
4. Contractual created by contract
5. Universal over universal things (co-heirs)
6. Singular or Particular over particular or
specific thing
7. Incidental exists independently of the will of
the parties
Created by
contract or
other things
Purpose
Collective
enjoyment of a
thing
Agreement for
it to exist for
10 years
valid (If more
than 10 years,
the excess is
void)
Term
E. CO-OWNERSHIP
CO-OWNERSHIP is a form of ownership which
exists whenever an undivided thing or right
belongs to different persons.
2. HOW CREATED
1.Law
2.Contracts
OWNE
RSHIP
No legal
personality
Source
================================
1. ELEMENTS
1.
Plurality of subjects many owners
2.
Object of ownership must be undivided
3.
Recognition of ideal shares; no one is an
owner of a specific portion of the property
until it is partitioned.
CO-
Representatio
n
Effect of death
Substitution
NOTE: 20
years is the
maximum if
imposed by
the testator or
donee of the
common
property
As a rule, no
mutual
representation
Not dissolved
by death or
incapacity of a
co-owner
Can dispose of
PARTNERSH
IP
Has legal or
juridical
personality
Created by
contract only
(express or
implied)
Profit
No term limit
set by law
As a rule,
there is
mutual
representatio
n
Dissolved by
the death or
incapacity of
a partner
Cannot
his share
without
consent of
others
Profits
Must always
depend on
proportionate
shares
substitute
another as
partner in his
place without
consent of
others
May be
stipulated
upon
Disposal
of shares
Effect of
death
Effect of
disability
COOWNERSHIP
Involves a
physical whole.
But there is an
ideal (abstract)
division; each
co-owner being
the owner of
his ideal share
Each co-owner
may dispose of
his ideal or
undivided
share (without
boundaries)
without the
others consent
share goes to
his own heirs
If a co-owner is
a minor, this
does not
benefit the
others for the
purpose of
prescription,
and
prescription
therefore runs
against them
JOINT
TENANCY
Involves a
physical whole.
But there is no
ideal (abstract)
division; each and
all of them own
the whole thing
Each co-owner
may not dispose
of his own share
without the
consent of all the
rest, because he
really has no ideal
share
share goes by
accretion to the
other jointtenants by virtue
of their
survivorship or jus
accrecendi
If one joint-tenant
is under legal
disability (like
minority), this
benefits the other
against whom
prescription will
not run
3. RIGHTS OF CO-OWNERS
a. Ownership over Whole Property
b. Sale/ Alienation
i.
Of Individual Interest
o
ii.
iii.
Of Entire Property
Redemption
owners
by
Other
Co-
Right of redemption
i. Right to be adjudicated thing (subject
to right of others to be indemnified)
ii. Right to share in proceeds of sale of
thing if thing is indivisible and they
cannot agree that it be allotted to one
of them
NOTE:
To be exercised w/in 30days from
written notice of sale of undivided
share of another co-owner to a
stranger
Redemption of the whole property
by a co-owner does not vest in
him sole ownership over said
property. Redemption within the
period prescribed by law by a coowner will inure to the benefit of
all co-owners. Hence, it will not
put an end to existing coownership. Mariano v. CA, [222
SCRA 736 (1993)]
iv.
Prescription
ii.
at
without the court or the husbands
authority is unenforceable. Being an
unenforceable contract, the 2nd Contract
is susceptible to ratification. The husband
continued remitting payments for the
satisfaction of the obligation under the
questioned
contract.
These
acts
constitute ratification of the contract.
Fabrigas v. San Francisco, [G.R. No.
152346, Nov. 25, 2005]
c.
o
o
d.
Use/ Possession
e.
Management/ Administration
o
o
o
o
o
o
4. PARTITION
a. Demandable Anytime
General Rule: No co-owner shall be obliged to
remain in the co-ownership. Each co-owner may
5. OBLIGATIONS OF CO-OWNERS
1. Share in charges proportional to respective
interest; stipulation to contrary is void
2. Pay necessary expenses and taxes may be
exercised by only one co-owner
3. Pay useful and luxurious expenses if
determined by majority
4. Duty to obtain consent of all if thing is to be
altered even if beneficial; resort to court if
non-consent is manifestly prejudicial
5. Duty to obtain consent of majority with
regards
to
administration
and
better
enjoyment of the thing; majority means
majority in the interest not in the number of
co-owners; court intervention if prejudicial
appointment of administrator
6. No prescription to run in favor co-owner as
long as he recognizes the co-ownership;
requisites for acquisition through prescription
. He
has
repudiated
through
unequivocal acts
. Such act of repudiation is made
known to other co-owners
. Evidence
must
be
clear
and
convincing
7. Co-owners cannot ask for physical division if
it would render thing unserviceable; but can
terminate co-ownership
8. After partition, duty to render mutual
accounting of benefits and reimbursements
for expenses
9. Under Art. 493 of the NCC, each co-owner
has full ownership of his part and of the fruits
and benefits pertaining thereto, and he may
alienate, assign or mortgage the portion
which may be allotted to him upon the
termination of the co-ownership. It appears
that while there is a single certificate of title,
the three lots are distinguishable from each
other.
RIGHTS OF 3RD PARTIES
1. Creditors of assignees may take part in
division and object if being effected
without their concurrence, but cannot
impugn unless there is fraud or made
notwithstanding their formal opposition
2. Non-intervenors retain rights of
mortgage and servitude and other real
rights and personal rights belonging to
them before partition was made
================================
TOPICS UNDER THE SYLLABUS
F. Condominium Act (RA 4726)
================================
CONDOMINIUM an interest in real property
consisting of a separate interest in a unit in a
residential, commercial or industrial building and
an undivided interest in common, directly or
indirectly, in the land on which it is located and in
other common areas of the building.
a. Any transfer or conveyance of a unit or an
apartment office or store or other space
therein shall include the transfer and
conveyance of the undivided interest in
the common areas or in a proper case,
the membership or shareholdings in the
condominium: provided however, that
where the common areas in the
condominium project are held by the
owners of separate units as co-owners
thereof, no condominium unit therein
shall be conveyed or transferred to
persons other than Filipino citizens or
corporations at least 60% of the capital
stock of which belong to Filipino citizens,
except in cases of hereditary succession.
================================
================================
POSSESSION is the holding of a thing or
enjoyment of a right
1.
a.
ELEMENTS
Occupancy
actual or constructive (corpus)
b.
Intent
to
possess (animus possidendi)
c.
Must be by
virtue of ones own right
Extent of Possession:
1. Physical/actual occupancy in fact of the
whole or at least substantially the whole
2. Constructive occupancy in part in the name
of the whole under such circumstances that
the law extends the occupancy to the
possession of the whole
Subject of possession: things or rights which
are susceptible of being appropriated
Exceptions:
1. Res communes
2. Property of public dominion
3. Discontinuous servitudes
4. Non-apparent servitudes
DEGREES OF POSSESSION:
aa
Holding w/o title and in violation
of right of owner (grammatical degree)
Ex. possession of a thief
aa
Possession with juridical title but
not that of owner (juridical possession)
Ex. that of a lessee, pledge,
depositary
aa
Possession with just title but not
from true owner (possessory right)
Ex. A in good faith buys a car
from B who delivers the same to A
but B merely pretended to be the
owner
aa
Possession with just title from true
ACQUISITION OF POSSESSION FROM THE
VIEWPOINT OF WHO POSSESSES:
1. Personal
Requisites:
a. Intent to possess
b. Capacity to possess
c. Object must be capable of being
possessed
2. Thru authorized person (agent or legal
representative)
Requisites:
a. Intent to possess for principal (not for
agent)
b. Authority or capacity to possess (for
another)
c. Principal has intent and capacity to
possess
3. Thru Unauthorized person (but only if
subsequently ratified)
Requisites:
a. Intent to possess for another (the
principal)
b. Capacity of principal to possess
c. Ratification by principal
2. REQUIREMENTSTO RIPEN INTO
OWNERSHIP
Classes of Possession:
1. In concept of owner owner himself or
adverse possessor
Effects:
A. May be converted into ownership
through acquisitive prescription
B. Bring actions necessary to protect
possession
C. Ask for inscription of possession
D. Demand fruits and damages from
one unlawfully detaining property
2. In concept of holder usufruct, lessee,
bailee in commodatum
3. In oneself personal acquisition
A. must have capacity to acquire
possession
B. intent to possess
C. possibility to acquire possession
4. In name of another agent; subject to
authority
and
ratification
if
not
authorized; negotiorum gestio
A. Voluntary as when an agent
possesses for the principal
B. Necessary as when a mother
possesses for a child still in the
maternal womb
C. Unauthorized this will become
the principals possession only
after there has been a ratification
without prejudice to the effects of
negotiorum gestio
4. ACQUISITIVE PRESCRIPTION
POSSESSOR IN GOOD FAITH is one who is not
aware that there exist a flaw in the title or mode
w/c invalidates it.
POSSESSOR IN BAD FAITH is one who is aware
of defect.
Notes on Good Faith/Bad Faith
Mistake upon a doubtful/difficult question
of law may be the basis of good faith
Good faith is always presumed. Burden of
proof lies on the one alleging bad faith
Possession is presumed to be enjoyed in
the same character in which it is
acquired, until contrary is proven.
Ways of Acquiring Possession
1. Material occupation or exercise of a
right
a. TRADICION BREVI MANU when one
already in possession of a thing by a title
other than ownership continues to
possess the same under a new title, that
of ownership
b. TRADICION
CONSTITUTUM
POSSESSORIUM when the owner
continues in possession of the property
alienated not as owner but in some other
capacity.
b. By the subjection of the thing or right to
our will
a. TRADICION LONGA MANU effected by
mere consent or agreement of the parties
b. TRADICION SIMBOLICA effected by
delivering an object (such as key)
symbolizing the placing of one thing
under the control of the vendee
c.
o
o
i. Co-possession
Co-possessors deemed to have exclusively
possessed part which may be allotted to him;
interruption in whole or in part shall be to the
prejudice of all
b. Fruits
For possessors in good faith:
1. Entitled to fruits received before possession
is legally interrupted (natural and industrial
gathered or severed; civil accrue daily )
2. Entitled to part of net harvest and part of
expenses of cultivation if there are natural or
industrial fruits ( proportionate to time of
possession )
a. Owner has option to require possessor to
finish cultivation and gathering of fruits
and give net proceeds as indemnity for
his part of expenses;
b. If possessor in good faith refuses barred
from indemnification in other manner
4.
Im
provements caused by nature or time to
inure to the benefit of person who has
succeeded in recovering possession
5. Wild animals possessed while in ones
control; domesticated possessed if they
retain habit of returning back home
6. One who recovers, according to law,
possession unjustly lost is deemed to have
enjoyed it w/o interruption
Liabilities/ Duties Of Possessors
1. Return of fruits if in bad faith fruits
legitimate possessor could have received
2. Bear cost of litigation
3. Possessor in good faith not liable for loss
or deterioration or loss except when fraud
and negligence intervened
4. Possessor in bad faith liable for loss or
deterioration even if caused by fortuitous
event
5. Person who recovers possession not
obliged to pay for improvements which
have ceased to exist at the time of
occupation
General Rule Re: possession as a fact:
Possession as a fact cannot be recognized at the
same time in two different personalities
Exceptions:
1. Co-possessor there is no conflict of interest,
both of them acting as co-owners, as in the
case of property owned or possessed in
common
2. Possession of different concepts or different
degrees
IF IN GOOD
FAITH
IF IN BAD
FAITH
Necessary
Expenses
Useful
expenses
Luxurious
or
Ornamenta
l Expenses
1. Right to
reimbursemen
t
2. Right of
retention
1. Right to
reimbursemen
t of either the
amount spent
or the increase
in value
plus value
at owners
option (art.
546)
2. Right of
retention until
paid
3. Right of
removal
(provided no
substantial
damage or
injury is
caused to the
principal,
reducing its
value)
UNLESS the
winner (owner
or lawful
possessor)
exercises the
option in (1)
In general, no
right to refund
or retention
but can
remove if no
substantial
injury is
caused.
However,
owner has
OPTION to
allow:
a. Possessor
to remove
b. Or retain
for himself
(the owner)
the ornament
by refunding
the amount
spent (art.
548)
Right to
reimbursement
- no right of
retention
Taxes and
Charges
No right to
reimbursement
In general, no
right of refund or
retention but
can remove if no
substantial
injury is caused.
However, owner
has OPTION to
allow:
1. Possessor to
remove
2. Or retain for
himself (the
owner) the
ornament by
refunding the
value it has at
the time owner
enters into
possession (art.
549)
Regarding
gathered or
severed
fruits
Regarding
pending or
ungathered
fruits
1. On capital
charged to
owner
1. On capital
charged to
owner
2. On fruits
charged to
possessor
2. On fruits
charged to
owner
3. Charges
Possessor must
return value of
fruits already
received as well
as value of fruits
which the owner
or legitimate
possessor (not
the possessor in
BF)
could have
received with
due care or
diligence, MINUS
necessary
expenses for
cultivation,
gathering, and
harvesting, to
prevent the to
Reimbursed
possessor
To possessor
Cultivation
expenses of
gathered fruits
not
reimbursed to
possessor
pro-rating
between
possessor and
owner of
expenses, net
harvest, and
charges
To owner
Improveme
nts no
longer
existing
Liability for
accidental
loss or
deterioratio
n
Improveme
nts due to
time or
nature
Production
expenses of
pending fruits
indemnity
pro rata to
possessor:
(owners
option) money
allowing full
cultivation and
gathering of all
fruits; if
possessor
refused, he
shall lose all
the right to be
indemnified in
any other
manner.
No
reimbursemen
t
No indemnity
Only if acting
w/ fraudulent
intent or
negligence,
after summons
To owner or
lawful
possessor
Liable in every
case
No
reimbursement
To owner or
lawful possessor
1.
G
ood faith
2. Owner voluntarily parted with the possession
of the thing
3. In the concept of owner
a. Possession in good faith - Equivalent
to title
b. One who has lost or has been
unlawfully deprived of it may recover
the thing from whomever possesses
it, ordinarily, w/o reimbursement.
c. Owner must prove:
i. Ownership of the thing
ii. Loss or unlawful deprivation or
bad faith of the possessor
NOTE: Owner acts negligently or voluntarily
parts w/ the thing owned cannot recover from
possessor
SUMMARY OF RECOVERY OR NONRECOVERY PRINCIPLE
Owner
may
1.
from possessor in bad
recover without faith
reimbursement2.
from possessor in good
faith (if owner had lost the
property
or
been
unlawfully deprived of it)
the acquisition being from
a private person [art. 559]
Owner
may
if possessor acquired
recover
but the object in good faith at
should
a public sale or auction;
REIMBURSE the owner to pay the price
possessor
paid.
Owner cannot
1.
if
possessor
had
recover, even if acquired it in good faith by
he
offers
to purchase
from
a
reimburse
merchants store, or in
(whether or not fairs,
or
markets
in
the owner had accordance with the Code
lost or been of Commerce and special
unlawfully
laws
deprived)
2.
if owner is by his
conduct precluded from
denying
the
sellers
authority to sell
3.
if seller has voidable
title which has not been
avoided at the time of sale
to the buyer in good faith
for value and without
notice of the sellers defect
in title
4.
if recovery is no longer
possible
because
of
prescription
5.
if sale is sanctioned by
statutory
or
judicial
authority
6.
if
possessor
had
obtained
the
goods
because
he
was
an
innocent purchaser for
value and holder of a
negotiable document of
title to the goods
ANIMALS
WILD ANIMALS possessor is the one who has
control over them
DOMESTICATED AND TAMED ANIMALS the
possessor does not lose possession as long as
habitually they return to the possessors
premises
NOTE: For ownership, the owner must claim them
within 20 days from their occupation by another
person
Loss Of Possession: (PALA)
1. Abandonment of the thing renunciation
of right; intent to lose the thing
2. Assignment made to another by onerous
or gratuitous title
3. Destruction or total loss of the thing or
thing went out of commerce
4. Possession of another if new possession
lasted longer that 1 year (possession as
a fact); real right of possession not lost
except after 10 years
8. LOSS OF POSSESSION
Acts Not Affecting Possession: (not deemed
abandonment
of
rights);
possession
not
interrupted
1. Acts merely tolerated
2. Clandestine and unknown acts
3. Acts of violence
Possession Not Lost When:
2. Even for time being he may not know their
whereabouts, possession of movable is not
deemed lost
3. When agent encumbered property without
express authority except when ratified
4. Possession may still be recovered:
a.
Unlawfully deprived or lost
b.
Acquired at public sale in good
faith with reimbursement
c.
Provision of law enabling the
apparent owner to dispose as if he is
owner
d.
Sale under order of the court
e.
Purchases made at merchant
stores, fairs or markets
f.
Negotiable document of title
================================
================================
USUFRUCT is the 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
Quasi-usufruct is the usufruct pertaining to
immovables.
1. NATURE/ELEMENTS
Characteristics or Elements
1. Essential those without which it cannot be
termed usufruct
a.
A
real
right
(whether
registered in the Registry of Property or
not)
b.
Of a temporary nature or
duration
c.
Purpose: to enjoy the benefits
and derive all advantages from the object
Creator
Origin
Can be created
only by the
owner, or by a
duly authorized
agent, acting
in behalf of the
owner
May be created
by law,
contract, last
will, or
prescription
Extent
Coverag
e
Effect of
death
USUFRUCT
May be real or
personal
property. Can
also be on rights,
but not personal
rights
What can be
enjoyed here are
all uses and
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
Cause
Limited to a
particular use
Repairs
May be
constituted in
favor or, or
burdening, a
piece of land
held in usufruct
Not
extinguished by
the death of the
owner of the
dominant estate
Taxes
As to
other
things
The owner is
more or less
passive, and
he allows the
usufructuary to
enjoy the thing
given in
usufruct
The
usufructuary
has the duty to
make the
ordinary
repairs
The
usufructuary
pays for the
annual charges
and taxes on
the fruits
A usufructuary
may lease the
property itself
to another
right
The lessor may or
may not be the
owner as when
there is a sublease or when the
lessor is only a
usufructuary
May be created as
a rule only by
contract; and by
way of exception
by law (as in the
case of an implied
new lease, or when
a builder has built
in good faith on
the land of another
a building, when
the land is
considerably worth
more in value than
the building
The owner or
lessor is more or
less active, and he
makes the lessee
enjoy the thing
being leased
The lessee
generally has no
duty to pay for
repairs
The lessee
generally pays no
taxes
KINDS:
1. As to Origin
a. Legal created by law such as usufruct of
parents over the properties of their
children
b. Voluntary or conventional
i.
Created by will of the parties inter
vivos
ii.
Created mortis causa
c. Mixed partly created by law and partly
by will
3.
As to quantity or extent
a. As to fruits
i.
Total
ii.
Partial
b. As to extent
i.
Universal if over the entire
patrimony
ii.
Particular/Singular - if only individual
things are included
As to the number of persons enjoying
the right
a. Simple if only one usufructuary enjoys
the right
b. Multiple if several usufructuaries enjoy
the right
i.
Simultaneous at the same time
ii.
Successive one after the other
5.
As to terms or conditions
a. Pure no term or condition
b. With a term or period
i.
Ex die from a certaign day
ii.
In diem up to a certain day
iii.
Ex die in diem from a certain day up
to a certain day
c. With a condition
i.
Suspensive
ii.
Resolutory
2.
Us
ufruct CANNOT be constituted on an object
subject to Pledge
3. Usufruct can be constituted on an object
subjected previously to a Lease.
4. Usufructuary can lease out the property to
other parties
5. Usufructuary can construct improvements
over property subject to usufruct
3. HOW CONSTITUTED
How to constitute Usufruct
1. Legal Usufruct but is not evident in todays
laws
2. Act Inter Vivos
3. By Prescription
4. RIGHTS OF USUFRUCTUARY
a. Fruits
b. Possession and enjoyments
Right to civil, natural & industrial fruits of
property (jus fruendi and jus utendi)
a.
Civil Fruits accrue daily
I.
Belong to the usufructuary in
proportion in proportion to the time the
usufruct may last
II.
Both stock dividends and cash
dividends are considered civil fruits
b.
Industrial and Natural Fruits
I.
Fruits pending at the beginning of
the usufruct
aa
need
not
Ri
ght of usufructuary of woodland
ordinary cutting as owner does habitually or
custom of place; cannot cut down trees
unless it is for the restoration of improvement
of things in usufruct must notify owner first
be
c. Lease of Property
Right to lease the property
General Rule: The lease expires at the end of
the usufruct or earlier
Exception: In the case of leases of rural lands
which continues for the remainder of the
agricultural year;.
aa
aa
a aa
Right
to
introduce
useful
and
luxurious
expenses
but
with
no
obligation of reimbursement on part of
owner; may remove improvement if can be
done without damage
d. Sale/Alienation
rights
of
Usufructuary
iii.
OTHER
OBLIGATIONS
OF
THE
USUFRUCTUARY
1.
Obliged to notify owner of act of 3 rd
person prejudicial to rights of ownership
he is liable if he does not do so for damages
as if it was caused through his own fault
2.
Usufruct
constituted
on
immovable whereby a building is erected
and building is destroyed right to make use
of land and materials
================================
================================
EASEMENT is an encumbrance imposed upon an
immovable for the benefit of another immovable
belonging to a different owner. The immovable
in favor of which the easement is established is
How established:
1. By law (Legal)
2. By the will of the owners (Voluntary)
3. Through prescription (only for continuous and
apparent easements)
2.
M
ake any works necessary for the use and
preservation of the servitude; subject to the
following conditions:
A. The works shall be at his expense, are
necessary for the use and preservation of
the servitude;
B. They do not alter or render the servitude
more burdensome;
C. The dominant owner, before making the
works, must notify the servient owner;
and
D. They shall be done at the most
convenient time and manner so as to
cause the least inconvenience to the
servient owner
3. Renounce the easement if he desires to
exempt
himself
from
contribution
to
necessary expenses
4. Ask for mandatory injunction to prevent
impairment of his use of the easement
b) Obligations Of The Dominant Owner
1. Notify the servient owner of works necessary
for the use and preservation of the servitude
2. Contribute to the necessary expenses if there
are several dominant estates in proportion to
the benefits derived from the works
3. Cannot alter or impose added burden on the
easement
4. Choose the most convenient time and
manner in making the necessary works as to
cause the least inconvenience to the servient
owner
c) Rights Of The Servient Owner
1. Retain ownership of the portion on which the
easement is established, and may use it in
such a manner as not to affect the exercise
of the easement
2. Change the place or manner of the use of the
easement, provided it be equally convenient
3. Use the property subject of the easement,
unless there is an agreement to the contrary
d) Obligations Of The Servient Owner
1. Contribute to the necessary expenses in case
he uses the easement, unless there is an
agreement to the contrary
2. Not to impair the use of the easement
3. MODES OF EXTINGUISHMENT
How extinguished:
1. Merger in the same person of the ownership
of the dominant and servient estates;
2. Non-user for 10 years
. If discontinuous easements period
computed from the day it was ceased to
be used
.
3.
4.
5.
6.
4.LEGAL EASEMENTS
LEGAL EASEMENTS are those imposed by law
having for their object either public use or the
interest of private persons.
They shall be
governed by the special laws and regulations
relating thereto, and in the absence thereof, by
the Civil Code.
Kinds Of Legal Easements:
1. Public for public or communal use
2. Private for the interest of private
persons/private use, including those relating
to: (WRPL-DIAL)
a.
Waters
b.
Right of Way
c.
Party Wall
d.
Light and View
e.
Drainage of Building
f.
Intermediate Distances
g.
Against Nuisance
h.
Lateral and Subjacent Support
Co
mpulsory easements for drawing of water
and for watering animals can be imposed for
reasons of public use in favor of a town or
village, after payment of the proper
indemnity
Use of any water by anyone can be
disposed by having the water flow through
the intervening estates but is obliged to do
the following:
1. Prove that he can dispose of the water
and that it is sufficient for the use
intended
2. Show that the proposed right of way is
the most convenient and least onerous to
3rd persons
3. Indemnify the owner of the servient
estate
Easement of aqueduct is continuous and
apparent even though the flow of water may
not be continuous
3.
4.
5.
6.
7.
2.
Di
viding wall is on one side straight and plumb
on all its facement, and on the other, it has
similar conditions on the upper part but the
lower part slants or projects outward
Entire wall is built within the boundaries of
one of the estates
The dividing wall bears the burden of the
binding beams, floors and roof frame of one
of the buildings, but not those of the others
The dividing wall between courtyards,
gardens and tenements is constructed in
such a way that the coping sheds the water
upon only one of the estates
The dividing wall, being built by masonry, has
stepping stones, which at certain intervals
project from the surface of one side only, but
not on the other
The lands enclosed by fences or live hedges
adjoin others which are not enclosed
================================
TOPICS UNDER THE SYLLABUS
J. Modes of Acquiring Ownership
1. Mode v. Title
2. Original/Derivative Modes
K. Occupation
L. Intellectual Creation
M. Donation
1. Essential Elements
2. Kinds
3. Conditional Donations
a. Effect of Impossible/Illegal
Conditions
================================
MODES
OF
ACQUIRING
(OLDTIPS)
1. Occupation
2. Law
3. Donation
4. Tradition
5. Intellectual Creation
6. Prescription
7. Succession
OWNERSHIP:
1. MODE V. TITLE
Difference between Mode and Title
MODE is the process of acquiring or transferring
ownership
TITLE is the juridical act, right or condition which
gives the juridical justification for a mode or
means to their acquisition but which in itself is
insufficient to produce them
Mode
Directly
and
immediately
produces a real right
The cause
Proximate cause
Essence of the right
which
is
to
be
created
or
transmitted
Title
Serves merely to
give the occasion for
its
acquisition
or
existence
The means
Remote cause
Means whereby that
essence
is
transmitted
2. ORIGINAL/DERIVATIVE MODES
Original Mode independent of any preexisting or preceding title or right of another
Derivative Mode
owner
born
and
ordinarily raised under the care of people;
become res nullius when abandoned by
owner
Animals
1. Swarm of bees
owner shall have right to pursue
them to anothers land (owner to identify
latter for damages, if any)
land owner shall occupy/retain the
bees if after 2 days, owner did not pursue
the bees
2. Domesticated animals
may be redeemed within 20 days
from occupation of another person; if no
redemption is made, they shall pertain to
the one who caught them
3. Pigeons and fish
when they go to another breeding
place, they shall be owned by the new
owner provided they are not enticed
Movables:
1. Treasure found on anothers property
2. Movable found w/c is not treasure:
c. Must be returned to owner
J. INTELLECTUAL CREATION
K. DONATION
DONATION is an act of liberality whereby a
person disposes gratuitously of a thing or right in
favor of another, who accepts it
1. ESSENTIAL ELEMENTS
Characteristics
1. Unilateral obligation imposed on the donor
2. Consensual perfected at time donor knows
of acceptance
Requisites: (CIDA)
a a The donor must have capacity to make the
donation of a thing or right
aa
Donative intent (animus donandi) or intent to
make the donation out of liberality to benefit
the donee
a a Delivery, whether actual or constructive of
the thing or right donated
a a donee must accept or consent to donation
The donation is perfected once the
acceptance of the donation was made known
to the donor. Accordingly, ownership will
only revert to the donor if the resolutory
condition is not fulfilled. Quijada v. CA, 299
SCRA 695 (1998)
Requirements of a Donation:
1. Subject matter anything of value;
present and not future property, must
not impair legitime
2. Cause anything to support a
consideration,
generosity,
charity,
goodwill, past service, debt
3. Capacity to donate, dispose and accept
donation
4. Form depends on value of donation
2. KINDS
a) As to Effectivity
1. Inter vivos takes effect during the
lifetime of the donor
2. Mortis Causa takes effect upon the
death of the donor
3. Propter Nuptias made by reason of
marriage and before its celebration, in
consideration of the same and in favor of
one or both of the future spouses.
DONATION INTER
VIVOS
Disposition and
acceptance to take
effect during lifetime
of donor and donee
Already pertains to
the donee unless
there is a contrary
intent
Formalities required follow law on
donations and certain
kinds of donations and
law on obligations and
contracts (suppletory)
Irrevocable at the
instance of the donor;
may be revoked only
by reasons provided
by law
Revoked only for
Impossible/Illegal
to
suspensive
or
DONATION MORTIS
CAUSA
Disposition happens
upon the death of
donor
4. INTER
VIVOS/MORTIS
DONATIONS
CAUSA
Revocable ad mutuum
(exclusive will of
donor)
6. CAPACITY
a. Of Donor
5. FORM
a. Onerous Donations
ONEROUS the value of which is considered the
equivalent of the consideration for which it is
given and thus governed by the rules of
obligations and contracts
c.
CLASSIFICATION
OF
DONATION
INTER
VIVOS
1. From the viewpoint of motive, purpose,
or cause
PURE/
SIMPLE
Consider
a-tion
Merits of
donee
Law
to
apply/
forms
Law on
donations
Form of
accepta
nce
Required
Reservat
ion
w/regar
d to
personal
support
and
legitime
Applicabl
e
Warrant
y
against
eviction
and
hidden
defects
In bad
faith only
Revocati
on
Applicabl
e
REMUNERA
TORY
COND
ITION
AL
Valuable
considera
-tion is
imposed
but value
is less
than
value of
thing
donated
ONEROU
S
Liberality
or merits
of donee
or
burden/
charge of
past
services
provided
they do
not
constitute
demanda
ble debt
Law on
donations
Valuable
considera
-tion
given
Extent of
burden
Required
Required
Applicabl
e
Applicabl
e
2.
Fr
In praesenti to be
delivered in future (also considered inter
vivos)
Mortis causa
3. From the viewpoint of occasion
Ordinary donation
Law on
obligation
s
imposed
>
ObliCon
excess>
donation
Required
Not
Applicabl
e
In bad
faith only
In bad
faith only
Applies
Applicabl
e
Applicabl
e
Applicabl
e
DOUBLE DONATIONS:
Rule: Priority in time, priority in right
1. If movable one who first takes possession in
good faith
2. If immovable one who recorded in registry
of property in good faith
No inscription, one who first took
possession in good faith
In absence thereof, one who presents
oldest title
7. REVOCATION
Grounds For Revocation
1. Birth, Adoption, Reappearance of a child
Period of 4 years from the time of birth,
adoption or reappearance to revoke the
donation
NONFULFILLMEN
T OF
CONDITION
Needs court
action
Extent: whole
portion but
court may
rule partial
revocation
only
Property in
excess
Alienations/m
ortgages
imposed are
void unless
registered
with Register
of Deeds
INGRTITAUD
E
Needs court
action
Extent: Whole
portion
returned
Property to be
returned
Prior ones are
void; demand
value of
property
when
alienated and
cannot be
recovered or
redeemed
from 3rd
persons
donee
Fruits to be
returned at
filing of action
for revocation
Prescription of
action is 4
years from
birth, etc.
Action cannot
be renounced
Right of action
transmitted to
heirs
Action
extends to
donees heirs
Fruits to be
returned at
filing of
complainant
Prescription is
4 years from
nonfulfillment
Action cannot
be renounced
in advance
Right of action
at instance of
donor but
may be
transmitted to
heirs
Action does
not extend to
donees heirs
Prescription is
1 year from
knowledge of
fact and it
was possible
for him to
bring action
Heirs cannot
file action
Cause
of
action
arising
from
the
inofficiousness of donation arises only upon
death of the donor, as the value of the
donation will be contrasted with the net value
of the estate of the donor decedent. Eloy
Imperial v. CA,[ G.R. No. 112483 (1999)]
B. Thing
capable
of
acquisition
by
prescription
C. Possession of thing under certain
conditions
D. Lapse of time provided by law
2. Extinctive also called as limitation of actions
Morales v CFI, 97 SCRA 872, 1980
Who may acquire by prescription
1. Person who is capable of acquiring property
by other legal modes
2. State
3. Minors through guardians or personally
Against whom prescription may run
1.
Minors and incapacitated person who
have guardians
2.
Absentees who have administrators
3.
Persons living abroad who have
administrators
4.
Juridical persons except the state with
regard to property not patrimonial in
character
5.
Between husband and wife
6.
Between parents and children (during
minority/insanity)
7.
Between guardian and ward (during
guardianship)
8.
Between co-heirs/co-owners
9.
Between owner of property and
person in possession of property in concept
of holder
Re
asonable belief that person who transferred
the thing is the owner and could validly
transmit ownership
Must exist throughout the entire period
required for prescription
Possession in wartime
RULES IN COMPUTATION OF PERIOD
Present possessor may tack his possession to
that of his grantor or predecessor in interest
Present possessor presumed to be in continuous
possession even with intervening time unless
contrary is proved
First day excluded, last day included
TACKING PERIOD
There must be privity between previous and
present possessor
Possible when there is succession of rights
If character of possession different:
predecessor in bad faith possessor in
good
faith
use
extraordinary
prescription
PRESCRIPTION OF ACTIONS
PRESCRIPTIV
ACTION
E PERIOD
30 yrs
1. action over immovables from time possession is lost
10 yrs
1.
m
ortgage action
2. action upon written contract
3. action
upon
obligation
created by law
4. action upon a judgment
8 yrs
1. action to recover movables from time possession is lost
6 yrs
1. action upon an oral contract
2. action upon a quasi-contract
4 yrs
1. upon injury to rights of
plaintiff
2. upon a quasi-delict
1 yr
1. forcible entry and unlawful
detainer
2. defamation
5 yrs
1. others where periods are not
fixed by law
Rights not extinguished by prescription:
1. Demand right of way
2. Abate public/private nuisance
3. Declare contract void
4. Recover property subject to expressed trust
5. Probate of a will
6. Quiet title
O. NUISANCE
NUISANCE is any act, omission, establishment,
business, condition of property, or anything else
which:
1. Injures or endangers the health or safety of
others
2. Annoys or offends the senses
3. Shocks, defies or disregards decency or
morality
4.
O
bstructs or interferes with the free passage of
any public highway or street, or any body of
water
5. Hinders or impairs the use of property
Requirements
for
abatement
of
a
public/private nuisance by a private person:
1. Demand has been made
2. Demand has been rejected
3. Abatement be approved by the district health
officer and executed with the assistance of
the local police
4. Value of the destruction does not exceed
P3000
5. If public nuisance, it must be specially
injurious to him
A private person or a public official extrajudicially abating a nuisance shall be liable
for damages:
aa If he causes unnecessary injury
aa If an alleged nuisance is later declared by the
courts to be not a real nuisance
Remedies against a private nuisance:
aa
Civil action
aa
Abatement, without judicial proceedings
NOTE:
1. No legalization of nuisance, whether private
or public, by prescription
2. Even if nuisance no longer exists, the
aggrieved person may still pursue a civil
action for damages for the injuries suffered
during the existence of nuisance
3. Subsequent owner of the property, having full
knowledge of the existence of the nuisance,
did not remove the nuisance is solidarily
liable for the injuries and damages caused
4. Owner of nuisance property is not entitled to
compensation
5. Civil action against a public nuisance shall be
commenced by the mayor of the locality
6.
A private person may commence a civil
action to eliminate a public nuisance only if
he suffered a particular harm or injury which
is different from the harm or damage
suffered by the general public by reason
thereof
OBLIGATIONS
A. GENERAL PROVISIONS
================================
TOPICS UNDER THE SYLLABUS
A. GENERAL PROVISIONS
1. Definition
2. Elements of an Obligation
3. Different Kinds of Prestation
4. Classification of Obligations
5. Sources of Obligations
A. Art. 1157
B. Natural obligations
C. Extra-contractual obligations
=========================================
1. DEFINITION
=========================================
2. ELEMENTS OF AN OBLIGATION
OBLIGATION:
a. Licit
b. Possible
=========================================
c. Determinate/ Determinable
d. Must have pecuniary value
Page 85 of 401
active (obligee)
subjects.
and
the
passive
(obligor)
=========================================
B. Viewpoint of Performance
A. GENERAL PROVISIONS
Determinate or Specific
II. Generic
III. Limited Generic
A. GENERAL PROVISIONS
4. Classification of Obligations
=========================================
4. CLASSIFICATION OF OBLIGATIONS
A. Viewpoint of Sanction
a. Civil Obligations give a right of action
to compel their performance
NATURAL
OBLIGATION
Art. 1156
Based on positive
law
Enforceable by court
Cannot be compeled
Page 86 of 401
action
=========================================
A.2.
CONTRACTS
CONTRACTU)
5. SOURCES OF OBLIGATION
OBLIGATIONS
ARISE
(1) Law;
(2) Contracts;
(3) Quasi-contracts;
(4) Acts or omissions punished by law; and
(5) Quasi-delicts
EX
=========================================
1157.
(OBLIGATION
5. Sources of Obligations
A. ARTICLE
FROM
Page 87 of 401
The
act
must
be
UNILATERAL
distinguishing it from contract which is
based on agreement. (Tolentino, Volume
IV, p. 68)
KINDS OF QUASI-CONTRACT
Page 88 of 401
ELEMENTS:
1. That there exists a wrongful act or
omission imputable to the defendant by
reason of his fault or negligence;
2. That there exists a damage or injury,
which must be proved by the person
claiming recovery;
3. That there must be a direct causal
connection or a relation of cause and
effect between the fault or negligence
and the damage or injury; or that the
fault or negligence be the cause of the
damage or injury.
c.
NATURAL OBLIGATIONS
1.
They are real obligations to which the
law denies an action, but which the debtor
may perform voluntarily.
2.
It is patrimonial, and presupposes a
prestation.
3.
The binding tie of these obligations is in
the conscience of man, for under the law, they
do not have the necessary efficacy to give rise
to an action.
1.
Performance after the civil obligation has
prescribed
2.
Reimbursement of a third person for a
debt that has prescribed
(b)
b.
3.
Restitution by minor after annulment of
contract
4.
Delivery by minor of money or fungible
thing in fulfillment of obligation
5.
Performance after action to enforce civil
obligation has failed
6.
Payment by heir of debt exceeding value
of property inherited
Page 89 of 401
7.
Payment of legacy after will have been declared
void.
ELEMENTS (CDLI)
C. EXTRA-CONTRACTUAL OBLIGATIONS
KINDS:
1. Estoppel in pais (by conduct)
a. Estoppel by silence
b. Estoppel by acceptance of benefits
2. Technical Estoppel
a. Estoppel by deed
b. Estoppel by record
c.
Estoppel by judgment
d. Estoppel by laches
with
PRESCRIPTION
effect
of
Concerned with
fact of delay
Question of inequity of
permitting the claim to be
enforced
Question
or
matter of time
Not statutory
Statutory
Applies in equity
Applies at law
Based on a fixed
time
================================
================================
TOPICS UNDER THE SYLLABUS
B. NATURE AND EFFECT OF
OBLIGATIONS
Page 90 of 401
1. Obligation to give
A. A determinate or specific thing
B. An indeterminate or generic
thing
2. Obligation to do or not to do
3. Breaches of obligations
A. Complete failure to perform
B. Default or Delay (Art. 1169)
B.1. Mora solvendi
B.2. Mora accipiendi
B.3. Compesatio morae
C. Fraud
C.1. Waiver of future fraud is void
(Art. 1171)
D. Negligence
D.1. Ordinary Diligence
D.2 Exceptions
E. Contravention of the tenor of
obligation
F. Fortuitous Event
4. Remedies of Obligations
A. Specific Performance
A.1. Substituted performance by a
third person on obligation to deliver
generic thing and in obligation to do,
unless a purely personal act
B. Rescission (resolution in
reciprocal obligations)
C. Damages, in any event
D. Subsidiary remedies of creditors
(Art. 1177)
D.1. Accion subrogatoria
D.2. Accion pauliana
D.3. Accion directa (Arts. 1652,
1608, 1729, 1893)
========================================
=========================================
1. OBLIGATION TO GIVE
A. DUTIES OF OBLIGOR IN AN OBLIGATION
TO GIVE A DETERMINATE THING (Arts.
1163, 1164, 1166.)
To preserve or take care of the thing due with
the diligence of a good father of a family
EXCEPTION: if the law requires or the parties
stipulate another standard of care
B. DUTIES OF OBLIGOR IN AN OBLIGATION
TO GIVE A GENERIC THING (Arts. 1246 AND
1170)
To deliver the thing of the quality intended
by the parties, taking into consideration the
purpose of the obligation, intent of the parties,
and other circumstances;
To be liable for damages in case of fraud,
negligence, or delay, in the performance of his
obligation, or contravention of the tenor thereof.
Page 91 of 401
b.
To demand rescission of the obligation
with right to recover damages
c.To demand payment of damages when it
is the only feasible remedy
d.
If the obligor delays, or has promised
to deliver the same thing to two or more
persons who do not have the same interest,
he shall be responsible for any fortuitous
event until he has effected delivery.
1. If the source of the obligation is law, quasicontract, delict, quasi-delict, it arises from
the time designated by the law creating or
regulating them;
2. If the source is contract, it arises from the
time of the perfection of the contract (i.e.
meeting of the minds between the parties),
unless
a.the parties made a stipulation to the
contrary,
b. the obligation is subject to a suspensive
condition or period; arises upon fulfillment
of the condition or arrival of the period
c.in a contract to sell, the obligation arises
from the perfection of the contract even if
the obligation is subject to a suspensive
condition or a suspensive period where the
price has been paid
=========================================
Page 92 of 401
========================================
Fraud (Dolo)
3.
Negligence (Culpa)
4.
Contravention
obligation
of
the
tenor
of
the
REAL
Right pertaining to a
person to demand
from another, as a
definite passive
subject, the
fulfillment of the
prestation to give,
to do or not to do.
Right pertaining to a
person over a
specific thing,
without a definite
passive subject
against whom the
right may be
personally enforced
Page 93 of 401
KINDS OF DELAY:
1. Mora solvendi delay or default committed by
debtor
2. Mora accipiendi delay or default committed
by creditor
3. Compensatio Morae default of both parties
in reciprocal obligations
TYPES OF FRAUD:
1. Causal Fraud (Dolo Causante): fraud
employed in the execution of the contract
Page 94 of 401
2.
Incidental Fraud (Dolo Incidente): fraud in
performance of obligation already existing
because of a contract
FRAUD IN THE
PERFORMANCE/
DOLO INCIDENTE
CAUSAL FRAUD/
DOLO CAUSANTE
(ART. 1338)
KINDS OF NEGLIGENCE
(ART. 1170)
Present during the
performance of a
pre-existing obligation
Purpose is to evade
the
normal
fulfillment of the
obligation
Purpose is to secure
the
consent
of
another to enter into
the contract
Results in vitiation
of consent; voidable
contract
c.
Criminal Negligence (Culpa
Criminal) wrong or negligence in the
commission of a crime
Page 95 of 401
AMOUNT OF
EVIDENCE
Preponderance
of evidence
COMPROMIS
E
Can be
compromised
as any other
civil liability
Presumption of
negligence
PRESUMPTIO
N
Proof beyond
reasonable
doubt
Criminal
liability can
never be
compromised
Presumption
of innocence
FRAUD
NEGLIGENCE
CULPA AQUILIANA
Negligence
substantive
independent
CULPA
CONTRACTUAL
is
and
Negligence merely an
incident of performance
of an obligation
There is deliberate
intention to cause
damage.
There is no
deliberate intention
to cause damage.
There is a pre-existing
contractual relation
Liability cannot be
mitigated.
Liability may be
mitigated.
the
the
Must be clearly
proved
Source
of
obligation
is
negligence itself
Negligence must be
proved
Diligence
in
the
selection
and
supervision of the
employees
is
a
defense
Diligence
selection
supervision
employees
available as a
the
and
of
the
is
not
defense
CRIME
WHAT IT
PUNISHABLE
Acts
punishable by
law
CONDITION
OF THE
MIND
LIABILITY
FOR
DAMAGES
Criminal intent
unnecessary
Necessary
Damages may
be awarded to
injured party
NATURE OF
THE RIGHT
VIOLATED
Violation of
private rights
Some crimes
do not give
rise to civil
liability
Public rights
in
Page 96 of 401
EFFECTS OF
CONDITIONS
IMPOSSIBLE
CONDITION
AND
ILLEGAL
EFFECT ON
OBLIGATIO
N
EFFECT
ON
CONDITION
VOID
VOID
NOT to Do an
Illegal Thing
VALID
VALID
NOT to do an
impossible thing
VALID
DISREGARD
CONDITION
VALID
VOID
Condition
IMPOSSIBLE BUT
Obligation
DIVISIBLE
ONLY
THE
AFFECTED
OBLIGATION IS VOID.
TO
impossible
illegal
DO
OR
must
be
unforeseeable
or
any
========================================
A. SPECIFIC PERFORMANCE
EXCEPTION: There concurs a corresponding
fraud, negligence, delay or violation or
contravention in any manner of the tenor of the
obligation.
Page 97 of 401
C. DAMAGES
To demand payment of damages when it is a
feasible remedy
D. SUSIDIARY REMEDIES OF CREDITORS
1. Accion Subrogatoria action which the
creditor may exercise in the place of his
negligent debtor in order to preserve or recover
for the patrimony of the debtor the product of
such action, and then obtain therefrom the
satisfaction of his own credit
2. Accion Pauliana action to revoke or
rescind acts which the debtor may have done to
defraud his creditor.
3. Accion Directa - (Arts. 1652, 1608, 1729,
1893)
================================
C. KINDS OF CIVIL
OBLIGATIONS
================================
Page 98 of 401
D. Resolutory period
E. Definite or indefinite period
E.1. Instances when courts may
fix the period (Art. 1197)
E.2. Creditor must ask court to set
the period before he can demand
payment
4. Alternative or facultative (Art.
1199)
A. Difference between alternative
and facultative obligations
B. Effect of loss of specific things or
impossibility of performance of
alternative, through fault of
debtor/creditor or through
fortuitous events
2. CONDITIONAL OBLIGATIONS
=========================================
A. RESOLUTORY CONDITION
Demandable at once
It extinguishes obligations
1. PURE OBLIGATIONS
It is an unqualified obligation which is
demandable immediately. It is an obligation
whose performance does not depend upon a
future and uncertain event, or past event
unknown to the parties. (Art. 1179)
=========================================
B. SUSPENSIVE CONDITION
C. POTESTATIVE CONDITION
The fulfillment of the condition entirely depends
upon the sole will of the debtor.
=========================================
GENERAL RULE: All potestative conditions are
void.
Page 99 of 401
D.
EFFECT
OF
SUSPENSIVE
RESOLUTORY CONDITIONS
AND
Art. 1187:
E.
IMPROVEMENT,
DETERIORATION
LOSS,
AND
=========================================
Page 100 of
=========================================
1. According to effect:
a. Resolutory (in diem) demandable at
once but terminates upon arrival of the
day certain
3. OBLIGATIONS
TERM
WITH
PERIOD
OR
on
obligation
the day
2. According to source
a. Legal - when it is provided by laws
b. Conventional or Voluntary - when it is
agreed to by the parties
c. Judicial - when it is fixed by the court
3. According to definiteness:
a.Definite - when it is fixed or it is known
when it will come
b. Indefinite - when it is not fixed or it is
not known when it will come
Remedy:
1.
2.
Court shall fix period of payment when
parties unable to agree
CONDITION
Interval
of
time
which is future and
certain
Page 101 of
the parties
Time
w/c
must
necessarily
come
although it may not
be known when
Exerts an influence
upon the time of
demandability
or
extinguishment of an
obligation
Exerts
an
influence
upon the very existence
of the obligation itself
When
it
is
left
exclusively to the will
of the debtor, the
existence
of
the
obligation is affected
When
it
is
left
exclusively to the will of
the
debtor,
the
obligation is void
PERIOD FOR
CREDITOR
THE
BENEFIT
OF
THE
of
debtor,
unless
security
aa
4. Violates undertaking
extension of period
aa
5. Attempts to abscond
=========================================
aa
aa
in
consideration
of
4. Alternative or Facultative
Obligation
=========================================
Page 102 of
4. ALTERNATIVE OR FACULTATIVE
OBLIGATION
(ARTS. 1199 1206)
WHEN
CONVERTED
OBLIGATION:
IN
2.
ALTERNATIVE
2.
a. Impossible
b. Unlawful
c.
SIMPLE
1.
RIGHT
OF
CHOICE
OBLIGATIONS
TO
Page 103 of
If it is impossible to
give all except one,
the last one must still
be given
If it is impossible to
give the principal,
the substitute does
not have to be given;
if it is impossible to
give the substitute,
the principal must
still be given
================================
FACULTATIVE
If one of prestations is
illegal, others may be
valid but obligation
remains
If
principal
obligations is void
and there is no
necessity of giving
the substitute; nullity
of P carries with it
nullity of S
Page 104 of
stated
that
there
is
3. Solidary Obligation
A. Mutual agency among solidary
debtors (Arts. 1214-1215)
B. Mutual guaranty among solidary
debtors (Arts. 1216, 1217, 1222)
C. Each one of solidary creditors may
do whatever may be useful to the
others, but not anything prejudicial
to them (Art. 1212)
C.1. Effect of any novation,
compensation, confusion or
remission of debt executed by a
solidary creditor
4. Divisible and Indivisible (Art.
1225)
5. Obligations with a Penal Clause
(Arts. 1226, 1228-1230)
=========================================
Page 105 of
object
of
obligation
Plurality of subjects
is not required
Plurality of subjects is
indispensable
=========================================
In case of breach,
obligation
is
converted into 1 of
indemnity
for
damages
because
of
breach,
indivisibility of the
obligation
is
terminated
of the obligation
PASSIVE SOLIDARITY
SURETYSHIP
=========================================
EFFECT OF BREACH
If one of the joint debtors fails to comply with his
undertaking, the obligation can no longer be
fulfilled or performed. Consequently, it is
converted into one of indemnity for damages.
Innocent joint debtor shall not contribute to the
indemnity beyond their corresponding share of
the obligation.
INDIVISIBILITY
DISTINGUISHED
the
and
SOLIDARITY,
INDIVISIBILITY
SOLIDARITY
Refers
to
the
prestation
which
constitutes
the
3. Solidary Obligation
=========================================
3. SOLIDARY OBLIGATION
SOLIDARY
OBLIGATION
(Obligacion
Solidaria) must be expressed in stipulation or
provided by law or by nature of obligation
Page 106 of
e.
B
ailees in commodatum
EFFECTS:
c.
EFFECTS:
co-debtor
still
entitled
to
reimbursement
f.
Instances
where
solidary obligation:
law
imposes
d. Liability of principals,
accessories of a felony
obligation
accomplices,
1.
2.
3.
of
and
Page 107 of
In
tention of parties should be taken into
account to determine whether obligation is
divisible or not
=========================================
=========================================
INDIVISIBLE
performance
Provided by law
Intention of parties
NOTES:
Page 108 of
a.
b.
c.
2.
to strengthen the coercive force of
the obligation by the threat of greater
responsibility in the event of breach
KINDS OF PENALTIES:
1.
Page 109 of
2.
Conventional constituted by
agreement of the parties
3.
Compensatory established
for the purpose of indemnifying the damages
suffered by the obligee or creditor in case of
breach of the obligation
4.
Punitive established for the
purpose of punishing the obligor or debtor in
case of breach of the obligation
5.
Subsidiary or alternative- in
case of non-performance only the penalty is
demandable
6.
Joint or cumulative both the
principal undertaking and the penalty may
be demanded
Partial/irregular performance
Penalty provided is iniquitous/
unconscionable
================================
E. EXTINGUISHMENT OF
OBLIGATIONS
================================
TOPICS UNDER THE SYLLABUS
E. EXTINGUISHMENT OF
OBLIGATIONS
1. Payment (Arts. 1236-1238)
A. Dation in payment (Art. 1245)
B. Form of payment (Art. 1249)
C. Extraordinary inflation or
deflation (Art. 1250)
D. Application of payment (Arts.
1252-1254)
Page 110 of
1.
Payment or performance
2. Loss of the thing due
1. PAYMENT OR PERFORMANCE
REQUISITES
FOR
PAYMENT/PERFORMANCE
VALID
a. Identity
Other Modes:
7. Annulment
b. Integrity or completeness
c.
Indivisibility
8. Rescission
9. Fulfillment of resolutory condition
10. Prescription
a.It must
obligee's
b.
benefit and only to the extent of
such benefit
have
redounded
to
Page 111 of
the
THE
CREDITOR
interest
in
the
person
the
kept
payment
the
thing
has
been
1.
After payment, 3rd person acquires the
creditors rights (subrogation)
2.
3.
By creditors conduct, debtor has been
led to make the payment (estoppel)
2. Payment to the possessor of the credit,
when made in good faith
REQUISITES:
faith
Page 112 of
aa
Application of Payments
2.
Dation in Payment/ Dacion en Pago/
Adjudication/
Dacion
in
Solutum/
Adjudicacion en Pago/ Payment in Kind/
Dation en Paiement
3.
4.
SUBSTANTIAL PERFORMANCE
A debt shall not be understood to have been
paid unless the thing or service in which the
obligation consists has been completely
delivered or rendered, as the case may be.
If the obligation has been substantially
performed in good faith, the obligor may recover
as though there had been a strict and complete
fulfillment, less damages suffered by the
obligee.
When the obligee accepts the performance,
knowing its incompleteness or irregularity, and
without expressing any protest or objection, the
obligation is deemed fully complied with
Deviation is slight
Parties so stipulate
Page 113 of
ii.
REQUISITES
PAGO:
FOR
VALID
DACION
EN
is
not
judicially
declared
Page 114 of
C.
CESSION or ASSIGNMENT (IN FAVOR
OF CREDITORS) the process by which debtor
transfer all the properties not subject to
execution in favor of creditors is that the latter
may sell them and thus, apply the proceeds to
their credits; extinguish up to amount of net
proceeds ( unless w/ contrary stipulation)
KINDS OF ASSIGNMENT:
a. Legal governed by the insolvency law
b. Voluntary agreement of creditors
c.
EFFECTS OF ASSIGNMENT:
a.
b.
c.
CESSION IN
Page 115 of
PAYMENT
One creditor
Plurality of creditors
Not
necessarily
in
state
of
financial
difficulty
Debtor
must
b
partially or relatively
insolvent
Thing
delivered
considered
equivalent
performance
is
as
of
Universality
of
property of debtor is
what is ceded
Payment extinguishes
obligation
to
the
extent of the value of
the thing delivered as
agreed upon, proved
or implied from the
conduct of the creditor
Merely
releases
debtor
for
net
proceeds of things
ceded of, assigned,
unless there is a
contrary intention
c.
EFFECTS:
OBLIGATION
EXTINGUISHMENT
OF
to
order
CONSIGNATION
allowed in:
W/O
PRIOR
TENDER
Page 116 of
antecedent act;
preparatory
extrajudicial
principal
act;
produces the effects
of payment
judicial
ii.
=========================================
TO
EXCEPTIONS:
=========================================
2. LOSS OF DETERMINATE THING OR
IMPOSSIBILITY OR DIFFICULTY OF
PERFORMANCE
IMPOSSIBILITY
OF
a. Physical impossibility
b. Legal impossibility
i.
EXCEPTIONS:
a. If the generic thing is delimited
b. If the generic thing has already been
segregated
c.
Monetary obligation
Page 117 of
EFFECT
OF
IMPOSSIBILITY
PERFROMANCE IN OBLIGATION TO DO
OF
REQUISITES:
NOTE:
Judicial determination
necessary
of
extent
is
Loss
due
to
debtors
fault
==========================================
REQUISITES:
a. There must be an agreement
b. There must be a subject matter (object
of the remission, otherwise there would
be nothing to condone)
c.
Page 118 of
a.
If
in hands of joint debtor only his share is
condoned
b.
If in hands of solidary debtor
debt is condoned
- whole
c.
Tacit
voluntary
destruction
of
instrument by creditor; made to prescribe w/o
demanding
==========================================
TOPICS UNDER THE SYLLABUS
E. EXTINGUISHMENT OF
OBLIGATIONS
4. Confusion or Merger
=========================================
FORMS
EXTENT
a. Express
formalities of
donation
a. Total
b. Implied
conduct
is
sufficient
b. Partial
KINDS
a.
Principal
accessory
also
condoned
b.
Accessory
principal
still
outstanding
c.
Accessory
obligation of pledge
condoned;
presumption
only,
rebuttable
4. CONFUSION OR MERGER
REQUISITES:
a. It must take place between principal
debtor and principal creditor only
b. Merger must be clear and definite
c.
d. Revocable,
if
=========================================
Page 119 of
=========================================
5. COMPENSATION
REQUISITES:
a. Both parties must be mutually creditors
and debtors - in their own right and as
principals
b. Both debts must consist in sum of money
or if consumable , of the same kind or
quality
c.
d. Both
debts
are
liquidated
demandable (determined)
and
one obligation
impossibility of
payment
Page 120 of
may be partial
performance
Simpler
more guarantee and
less risk
may take place by
operation of law
must be complete
performance
involves action or
delivery of the amount
paid
REQUISITES:
a.Valid obligation
COMPENSATION DISTINGUISHED FROM
COUNTERCLAIM
COMPENSATION
COUNTERCLAIM
takes place by operation
must be pleaded
of law and extinguishes
to be effectual
reciprocally 2 claims as
soon as they exist
simultaneously to the
concurrent amounts
EFFECTS OF NOVATION:
a. Extinguishment
accessory, except:
of
principal
carries
i. Stipulation to contrary
ii. Stipulation
pour
autrui
beneficiary consents
unless
=========================================
Page 121 of
2. Delegatario - creditor
i. If resolutory: valid
ii. If
suspensive
and
did
not
materialize: old obligation is enforced
KINDS OF NOVATION:
1. REAL/OBJECTIVE
change
object,
cause/consideration or principal condition
2. PERSONAL/SUBJECTIVE
i. Substituting
(passive)
person
of
debtor
EXPROMISION:
initiative
is
rd
from 3 person or new debtor;
new debtor and creditor to
consent; old debtor released
from obligation; subject to full
reimbursement and subrogation
if made w/ consent of old
debtor; if w/o consent or against
will
,
only
beneficial
reimbursement; if new debtor is
insolvent, not responsible since
w/o his consent
Page 122 of
2.
Legal - takes place by operation of law; no need
for consent; not presumed except
as provided for in law:
DIFFERENCE
FROM
PAYMENT
PERSON vs CHANGE OF DEBTOR
DIFFERENCE
FROM
PAYMENT BY
3RD PERSON
BY
3rd
CHANGE OF DEBTOR
debtor
is
not
necessarily
released
from
debt
debtor is released
one obligation
CONVENTIONAL
DISTINGUISHED
RIGHTS
FROM
SUBROGATION
ASSIGNMENT OF
CONVENTIONA
L
SUBROGATION
ASSIGNMENT OF RIGHTS
Governed
by
Arts. 1300-1304
debtors consent
is required
debtors
required
extinguishes the
obligation
and
gives rise to a
new one
consent
is
not
================================
express or implied
Page 123 of
CONTRACTS
A. GENERAL PROVISIONS
================================
A. GENERAL PROVISIONS
1. Essential Requisites (Art. 1261)
=========================================
2. Kinds of Contracts
A. Consensual
B. Real
C. Formal or solemn
C.1. Donations (Arts. 748-749)
C.2. Partnership where real
property contributed (Arts. 1771,
1773)
C.3. Antichresis (Art. 2134)
C.4. Agency to sell real property
or an interest therein (Art. 1874)
C.5. Stipulation to charge interest
(Art. 1956)
C.6. Stipulation limiting common
carriers duty of extraordinary
diligence to ordinary diligence
(Art. 1744)
C.7. Chattel mortgage
C.8. Sale of large cattle
3. Formality (Arts. 1356, 1357, 1358)
4. Reformation of Contracts
5. Interpretation of Contracts
6. Defective Contracts
A. Rescissible contracts (Art. 1381)
A.1. Difference with rescission
(resolution) under Art. 1191
B. Voidable contracts (Arts. 13281344, 1390-1402)
C. Unenforceable contracts (Arts.
1403-1408, 1317)
D. Void contracts (Arts. 1409, 1346)
(1) Pactum commissorium (Arts.
2088, 2130, 1390)
1. ESSENTIAL REQUISITES
ESSENTIAL ELEMENTS:
1. Consent
2. Subject Matter
3. Consideration
A. CONSENT
CONSENT meeting of minds between parties
on subject matter and cause of contract;
concurrence of offer and acceptance
REQUIREMENTS:
1. Must be manifested by the concurrence of
the offer and payment;
2. Parties are legally capacitate to enter into
contracts
3. Consent
must
spontaneous, and real
be
intelligent,
free,
Page 124 of
4.
S
ubject matter becomes illegal or impossible
before acceptance is communicated
NOTE: A qualified
counter-offer
acceptance
constitutes
Page 125 of
NOT
supported
by
independent
consideration the offeror can withdraw
the
privilege
at
any
time
by
communicating the withdrawal before
acceptance
Page 126 of
2.
Hospitalized lepers
3.
Prodigals
4.
Deaf and dumb who are unable to read
and write
5.
Those who by reason of age, disease,
weak mind and other similar causes, cannot
without outside aid, take care of themselves and
INCAPACITY
DISTINGUISHED
DISQUALIFICATION
FROM
INCAPACITY
DISQUALIFICATION
Restrains
the
exercise of the right
to contract
Absolutely disqualified
Based
subjective
circumstance
certain person
Based
upon
public
policy and morality
Contracts
into
are
voidable
upon
of
entered
merely
Violence
REQUISITES
a. Irresistible physical force
b. Such force is the determining cause for
giving consent
2.
Intimidation
REQUISITES:
b.
c.
Page 127 of
d.
e.
o
C
ausal Fraud (Dolo Causante)- Fraud in the
PERFECTION of the contract
3.
Mistake
5.
Undue influence
When
a
person
takes
improper
advantage of his power over the will of
another, depriving the latter of a
reasonable freedom of choice
SIMULATED CONTRACTS
4.
Fraud
KINDS:
1.
2.
Page 128 of
WANT OF
CAUSE
EFFECT
2.
In
transmissible rights
ABSENCE
OF CAUSA
ILLEGALITY
OF CAUSA
FALSITY OF
CAUSA
CAUSA NOT
STATED IN
CONTRACT
INADEQUAC
Y OF CAUSA
Fraud
Mistake
Undue influence
Cases specified by law
6. Objects
which
are
not
determination as to their kind
possible
of
C. CAUSE (CAUSA)
CAUSA- Immediate, direct and most proximate
reason why parties enter into contract
REQUISITES:
1. It must exist
2. It must be true
3. It must be licit
MOTIVE:
Purely private reason; illegality does not
invalidate
contract
except
when
it
predetermines purpose of contract; when
merged into one
MOTIVE
Direct
and
most
proximate reason of a
contract
Indirect
reasons
or
remote
Psychological or purely
personal reason
Legality or illegality of
Legality or illegality of
Page 129 of
cause
affects
the
existence or validity of
the contract
A
contract is a meeting of minds between two
persons whereby one binds himself, with respect
to the other, to give something or to render
some service
CONTRACT
OBLIGATION
DISTINGUISHED
CONTRACT
OBLIGATION
There must be an
obligation
CONTRACT
AGREEMENT
DISTINGUISHED
CONTRACT
Illegal Cause The cause is contrary to law,
morals, good customs, public order and public
policy
FROM
FROM
AGREEMENT
Agreements
enforceable through
legal proceedings
Cannot be enforced
by action in courts of
justice
There must be an
agreement
A. PRINCIPAL CHARACTERISTICS:
1. Autonomy of wills parties may
stipulate anything as long as not illegal,
immoral, etc.
2. Mutuality performance or validity
binds both parties; not left to will of one of
parties
3. Obligatory Force and Consensuality
parties are bound from perfection of
contract; contracts are perfected by mere
consent and from that moment the parties
are bound not only to the fulfillment of what
Page 130 of
has
been
expressly
D. REQUISITES:
1. Existence of a valid contract
2. Knowledge of the contract by a 3rd person
3. Interference by the 3rd person
E. TEST OF BENFICIAL SITUATION
B. EXCEPTION TO RELATIVITY:
1. Accion Pauliana
2. Accion directa
3. Stipulation pour autrui
C.
REQUISITES
AUTRUI
OF
STIPULATION
POUR
1.
Parties
must
have
clearly
and
deliberately conferred a favor upon a 3rd person
2.
The stipulation in favor of a 3rd person
should be a part of, not the whole contract
3.
That the favorable stipulation should not
be conditioned or compensated by any kind of
obligation whatsoever
=========================================
2. KINDS OF CONTRACTS
1.
4.
Neither of the contracting parties bears
the legal representation or authorization of 3rd
party
5.
The third person communicates his
acceptance before revocation by the original
parties
6.
2.
As to perfection or formation
.
Formal/solemn
conformity
to
(donation )
(e.g.
perfected
by
essential
formalities
As to cause
Page 131 of
8.
A
rendered
not
as
b.
9. As to name or designation
a.
those
which
lack
individuality and are not regulated by
special provisions of law
a aa
4. As to parties obliged
STAGES IN A CONTRACT:
1.
Preparation - negotiation
b.
Special or formal require some
particular
2.
Perfection/birth
3.
Consummation performance
Form
6. As to their purpose
a.
Transfer of ownership
FORMAL CONTRACTS
b.
Conveyance of use
1. Donation
c.
Rendition of service
Things
b.
Services
An
oral
donation
requires
the
simultaneous delivery of the thing or of
the document representing the right
donated. (Article 748)
Page 132 of
2.
4.
A
5.
Interest
6.
7.
Antichresis
Supported
by
a
valuable
consideration other than the
service rendered by the common
carrier; and
Chattel Mortgage
3.
Ordinary Diligence
Partnership
Page 133 of
8.
G
ENERAL RULE: contract is valid and binding
in whatever form provided that 3 essential
requisites concur
=========================================
EXCEPTIONS
a. Law requires contract to be in some
form for validity - donation and
acceptance of real property
3. FORM OF CONTRACTS
over
Page 134 of
=========================================
Requisites:
A. GENERAL PROVISIONS
b.
4. Reformation of Instruments
=========================================
d.
Prescribes in 10 years
execution of instrument
from
date
of
CAUSES/GROUNDS:
1. Mutual: instrument includes something w/c
should not be there or omit what should be
there
a. Mutual
b. Mistake of fact
c.
2. Wills
3. When real agreement is void
2. Unilateral
c.
faith
may
ask
or
for
=========================================
law
to
A. GENERAL PROVISIONS
5. Interpretation of Contracts
avoid
=========================================
Page 135 of
5. INTERPRETATION OF CONTRACTS
=========================================
A. GENERAL PROVISIONS
6. Defective Contracts
=========================================
6. DEFECTIVE CONTRACTS
A. RESCISSIBLE CONTRACTS
RESCISSIBLE CONTRACTS - Those which have
caused a particular economic damage either to
one of the parties or to a 3rd person and which
may be set aside even if valid. It may be set
aside in whole or in part, to the extent of the
damage caused
REQUISITES:
(a) Contract must be rescissible
Under Art 1381: Contracts entered into by
persons exercising fiduciary capacity:
1. Entered into by guardian whenever ward
suffers damage by more than 1/4 of value of
object
2. Agreed upon in representation of absentees,
if absentee suffers lesion by more than of
value of property
3. Contracts where rescission is based on fraud
committed on creditor (accion pauliana)
4. Objects of litigation; contract entered into by
defendant w/o knowledge or approval of
litigants or judicial authority
5. Provided for by law Arts 1526, 1534, 1539,
1542, 1556, 1560, 1567 and 1659
Page 136 of
RESCISSION
PROPER IN ART
1381
It is a principal
action retaliatory in
character
it is a
remedy
subsidiary
Applies
only
reciprocal
obligation
to
Applies
to
both
unilateral
and
reciprocal obligations
Its purpose is to
cancel the contract
Page 137 of
BADGES OF FRAUD
a.
consideration of the
inadequate or fictitious
b.
c.
d.
e.
f.
g.
conveyance
is
B. VOIDABLE CONTRACTS
VOIDABLE CONTRACTS -intrinsic defect; valid
until annulled; defect is due to vice of consent or
legal incapacity
MUTUAL
WHEN
RESTITUTION
CHARACTERISTICS:
a. Effective until set aside
b. May be assailed or attacked only in an
action for that purpose
NOT
APPLICABLE
Page 138 of
spouse, ascendants
coercion)
a. Minors
or
descendants
(moral
UNDUE INFLUENCE
d. Persons
specially
interdiction
disqualified:
civil
e. In state of drunkenness
f.
REQUISITES:
FRAUD
MISTAKE
VIOLENCE
Serious or irresistible force is employed to wrest
consent
INTIMIDATION
Page 139 of
NOTE:
Expression of an opinion not fraud unless
made by expert and other party relied on the
formers special knowledge
KINDS:
i.
No authority conferred
ii.
In excess of
(ultra vires)
authority
conferred
b. RATIFICATION
REQUISITES:
. Knowledge
of
contract voidable
a. Unauthorized
or
No
sufficient
authority entered into in the name of
another when:
reason
rendering
c.
STATUTE OF FRAUDS:
Agreement to be performed within a year
after making contract
Page 140 of
ii.
Special
promise to answer for debt, default or
miscarriage of another
CHARACTERISTICS:
iii.
iv.
v.
c.
vi.
NOTES:
D. VOID OR INEXISTENT
VOID OR INEXISTENT of no legal effect
Imprescriptible
an
Page 141 of
b. Prohibited by law
c.
Those
expressly
prohibited
or
declared void by law - Contracts w/c
violate any legal provision, whether it
amounts to a crime or not
OTHER EXCEPTIONS:
a. Payment of Usurious interest
ELEMENTS:
1. There should be a property mortgaged by
way of security for the payment of the principal
obligation.
2. There should be a stipulation for automatic
appropriation by the creditor of the thing
mortgaged in case of non-payment of the
principal obligation within the stipulated period.
2.
PACTUM DE NON ALIENANDO (Art.
2130)
c.
3.
Page 142 of
b.
c.
of
contract
=========================================
7. EFFECT OF CONTRACTS
Contracts take effect only between the parties,
their assigns and heirs, except in case where the
rights and obligations arising from the contract
are not transmissible by their nature, or by
stipulation or by provision of law. The heir is not
liable beyond the value of the property he
received from the decedent. (Article 1311)
If a contract should contain some stipulation in
favor of a third person, he may demand its
fulfillment provided he communicated his
Page 143 of
Page 144 of
SALES
A. INTRODUCTION
================================
TOPICS UNDER THE SYLLABUS
A. Introduction
1. Definition of sales (Arts. 1458,
1470)
2. Essential requisites of a contract
of sale (Art. 1505)
3. Stages of contract of sale
4. Obligations created (Art. 1165)
5. Characteristics of a contract of
sale
6. Sale is title and not mode
7. Sale distinguished from other
contracts
8. Contract of sale/contract to sell
Negotiation
Perfection
Consummation
=========================================
=========================================
A. INTRODUCTION
A. INTRODUCTION
4. Obligations created
1. Definition of Sales
=========================================
4. OBLIGATIONS CREATED
=========================================
=========================================
5. CHARACTERISTICS OF CONTRACT OF
SALE:
1.
2.
3.
4.
Nominate
Principal
Consensual
Bilateral
Page 145 of
5.
6.
7.
8.
Reciprocal
Onerous
Commutatitve
Title and not a mode
hand or not)
=========================================
OF WORK
Sale
Obligation to
absolutely transfer
ownership of thing
If intention is not
clear: value of thing
is equal or less than
amount of money
sale
Consideration is price
Seller needs to be
owner of thing to
transfer ownership
Essence is service
Essence is object
Real obligation
Personal obligation
Tests under Jurisprudence:
GR: IF YES, Contract for piece of work, IF
NO, SALE
Sale
Contract for delivery
of an article which
the vendor in the
ordinary course of
business
manufactures or
procures for general
market (whether on
Page 146 of
A. INTRODUCTION
Greater freedom
in determining
the price
Buyer still has to
pay the price
Principal contract
Buyer becomes
owner of thing; in
agency
Seller warrants
Not unilaterally
revocable
Seller receives profit
Real Contract
Non-payment of the
price is a negative
resolutory condition
Remedies available:
Specific
Performance
Rescission
Damages
Contract to Sell
Conditional
Personal obligation
obligation to do
Ownership is reserved
in the seller and will
pass to the buyer only
upon full payment of
the price
Full payment is a
positive suspensive
condition, the failure
of which is not a
breach but prevents
the obligation of the
vendor to convey title
to arise
Remedies available:
Resolution
Damages
================================
B. PARTIES TO A CONTRACT
OF SALE
================================
TOPICS UNDER THE SYLLABUS
=========================================
=========================================
Page 147 of
3. RELATIVE INCAPACITY
1. Capacity of Parties
=========================================
=========================================
2. ABSOLUTE INCAPACITY
MINORS, INSANE AND DEMENTED
PERSONS, AND DEAF-MUTES
Also includes:
-
State of drunkenness
Hypnotic spell
=========================================
Page 148 of
i.
Whether
the
subject
matter is of a type and nature that
exists or could be made to exist to
allow the seller reasonable certainty
of being able to comply with his
obligations
=========================================
ii.
4. Special Disqualifications
=========================================
4. SPECIAL DISQUALIFICATIONS
================================
Minimum requirement of
potential existence: taking into
consideration the state of science
and technology at the time of
perfection of the contract
B. Licit
B.1. Not outside the commerce of man
B.2. If illicit, contract is void
B.3. Prohibited:
i. Animals with contagious
diseases
ii. Sale of future inheritance
C. Determinate or determinable
i. Determinate: particularly designated or
physically segregated from all others of
the same class; always specific
ii. Determinable: always generic
C. Subject Matter
1. Requisites of a valid subject
matter (Arts. 1459-1465)
2. Particular kinds
a)
Thing is capable of
being made determinate
b)
Without
the
necessity of a new or further contract
between the parties.
=========================================
Emptio rei
speratae
Sale of an
expected
thing
Requisites:
1. Things
A. Possible
contingent
existing,
future,
and
Sale is
subject to the
condition;
that the thing
will exist; if it
does not,
there is no
contract
Uncertainty
is with regard
to the
quantity and
quality of the
thing and not
the existence
of the thing
Object is a
future thing
Emptio spei
Sale of a mere hope or
expectancy that the thing
will come to existence;
sale of the hope itself
Sale is effective even if
the thing does not come
into existence, unless it is
a vain hope (Art 1461
Sale of a vain hope or
expectancy is void)
The uncertainty is with
regard to the existence of
the thing
Page 149 of
Object is a present thing
which is the hope or
expectancy
NOTE:
Subject
matter
DETERMINED BY a 3rd PARTY.
CAN
NOT
be
================================
TOPICS UNDER THE SYLLABUS
D. Obligations of the Seller to
Transfer Ownership
1. Sale by a person not the owner
at time of delivery (Arts. 1462, 1505,
1459); Exceptions
2. Sale by a person having a
voidable title (Arts. 1506, 559)
=========================================
2. PARTICULAR KINDS
2. Future
goods
goods
to
be
manufactured, raised or acquired by the
seller after the perfection of the contract
NOTES:
Quantity of subject matter is not essential for
perfection; must determine nature and
quality of subject matter
Generic things may be the object of sale, but
the obligation to deliver the subject matter
can only be complied with when the subject
matter has been made determinate (either
by physical segregation or particular
designation)
================================
D. OBLIGATIONS OF THE
SELLER TO TRANSFER
OWNERSHIP
=========================================
Page 150 of
=========================================
1. MEANING OF PRICE
PRICE The sum stipulated as the equivalent of
the thing sold and also every incident taken into
consideration for the fixing of the price, put to
the debit of the vendee and agreed to by him.
=========================================
=========================================
================================
E. PRICE
================================
TOPICS UNDER THE SYLLABUS
E. Price
1. Meaning of price (Arts. 14691474)
2. Requisites for a valid price
3. How price is determined
4. Inadequacy of price (Arts. 1355,
1470)
5. When no price agreed (Art. 1474)
6. Manner of payment must be
agreed upon
7. Earnest money vs. Option money
(Art. 1482)
Page 151 of
=========================================
4. INADEQUACY OF PRICE
EFFECT OF GROSS INADEQUACY OF PRICE
NOTE: Mere inadequacy of the price does not
affect the validity of the sale, except
(1) When there is fraud, mistake, or undue
influence indicative of a defect in consent is
present,
(2)When it shows that the parties really
intended a donation or some other act or
contract.
(3)Judicial sale, where the inadequacy is
shocking to the conscience of man and there is
showing that in event of resale, a better price
can be obtained.
=========================================
E. PRICE
=========================================
Page 152 of
=========================================
=========================================
================================
F. FORMATION OF CONTRACT
OF SALE
================================
TOPICS UNDER THE SYLLABUS
F. Formation of Contract of Sale
1. Preparatory (Art. 1479)
1.1. Offer (Art. 1475)
1.2. Option contract (Arts. 1479,
1324)
1.3. Right of first refusal
1.4. Mutual promise to buy and
sell (Art. 1479)
2. Perfection (Arts. 1475, 1319,
1325, 1326)
3. Formalities of the contract (Art.
1403 (d)&(e))
=========================================
Page 153 of
1. PREPARATORY
3 STAGES IN LIFE OF A CONTRACT OF SALE
A. Policitacion/Negotiation Stage - offer is
floated, acceptance is floated but they do not
meet; the time when parties indicate their
interest but no concurrence of offer and
acceptance.
B. Perfection - concurrence of all requisites;
meeting of the minds.
C. Consummation - parties perform their
respective undertakings
A. PREPARATORY
I.
b. Nominate
RULES:
1. Offer is
floated
2. Offer floated
with a period
Without acceptance,
extinguished when period
has ended and maybe
withdrawn at will by
offeror; right to withdraw
must not be arbitrary
otherwise, liable to damage
under Art 19, 20, 21 of Civil
Code
3. Offer floated
w/ condition
Extinguished by
happening/non-happening
of condition
4. Offer floated
without
Continues to be valid
depending upon
circumstances of time,
place and person
period/without
condition
5. Offer is
floated and
there
is counter-offer
6. Offer is
floated
7. Offer
accepted
absolutely
c.
d. Onerous
e. Commutative
f.
g. Preparatory
Page 154 of
be
subject
to
Principal
contract;
stands on its own
Needs separate
consideration
Subject matter and
price must be valid
Not conditional
Not
subject
to
specific performance
=========================================
2. PERFECTION OF SALES
GENERAL RULE: A contract of sale is perfected
at the moment there is a meeting of the minds
upon the thing which is the object of the
contract and upon the price; consensual
contract
EXCEPTION: When the sale is subject to a
suspensive condition
REQUIREMENTS:
1. When parties are face to face when
there is absolute acceptance of an offer
that is certain
2. When
thru
correspondence
or
telegram when the offeror receives or
had knowledge of the acceptance
3. When the sale is subject to a
suspensive condition from the
moment the condition is fulfilled
Page 155 of
=========================================
Reason:
purposes
of
convenience only and not for validity
and enforceability; cause of action is
granted to sue and compel other
party to execute the document
Page 156 of
================================
G. TRANSFER OF OWNERSHIP
================================
TOPICS UNDER THE SYLLABUS
G. Transfer of Ownership
1. Manner of Transfer (Arts. 1477,
1496-1501)
2. When delivery does not transfer
title
3. Kinds of delivery
4. Double sales (Art. 1544)
5. Property Registration Decree
5.1. Requisites for registration of
deed of sale in good faith
5.2. Accompanied by vendors
duplicate certificate of title,
payment of capital gains tax, and
documentary tax registration fees
=========================================
1. MANNER OF TRANSFER
NOTE: Stage where parties both comply with
their obligation.
OBLIGATIONS OF THE SELLER
Page 157 of
.
W
HEN
EXECUTION
OF
PUBLIC
INSTRUMENT DOES NOT PRODUCE THE
EFFECTS OF DELIVERY
C. Different forms of Constructive Delivery Constructive delivery has same legal effect as
actual or physical delivery
Gives rise only to a prima facie presumption of
delivery which is destroyed when actual delivery
is not effected because of a legal impediment.
Ten Forty Realty v. Cruz
1. Traditio Longa Manu
1.
2.
3.
4.
5. Quasi-tradition
Delivery of rights, credits or incorporeal
property, made by:
Placing titles of ownership in the hands of
the buyer
Allowing buyer to make use of rights
6. Tradition by operation of law
The execution of a public instrument is
equivalent to delivery. But to be effective, it is
necessary that the vendor have such control
over the thing sold that, at the moment of sale,
its material delivery could have been made.
Addison v. Felix, [38 Phil. 404]
. Delivery of
Accessories
Fruits
and
Accessions/
Page 158 of
.
FAST FREE ALONG SIDE - When goods
delivered alongside the ship, there is already
delivery to the buyer (twin effects deemed
fulfilled)
.
1. Contract to sell
2.
Sale on acceptance/approval
ownership only passes to the buyer
when:
SALE
DESCRIPTION/SAMPLE
BY
OBLIGATIONS OF BUYER
Page 159 of
2.
I.
REQUISITES FOR DOUBLE SALES TO
EXIST: (VOCS)
4. DOUBLE SALE
GENERAL RULE: FIRST IN TIME, PRIORITY IN
RIGHT
When does it apply: when not all requisites
embodied in Art. 1544 concur.
Page 160 of
If
III. LIS PENDENS notice that subject matter is
in litigation
IV. ADVERSE CLAIM notice that somebody is
claiming better right
V. POSSESSION - Both actual or constructive
VI. REGISTRATION: any entry made in the
books of the registry, including both
registration in its ordinary and strict
sense, and cancellation, annotation, and
even marginal notes. It is the entry made
in the registry which records solemnly
and permanently the right of ownership
and other real rights.
Registered under
1544 applies
Torrens
system
Torrens
seller
has
given
consent
=========================================
G. TRANSFER OF OWNERSHIP
4. Property Registration Decree
=========================================
================================
H. RISK OF LOSS
================================
TOPICS UNDER THE SYLLABUS
H. Risk of Loss
1. General Rule (Arts. 1263, 1189)
2. When loss occurred before
perfection
3. When loss occurred at time of
perfection (Arts. 1493 and 1494)
4. When loss occurred after
perfection but before delivery
Page 161 of
3. AFTER PERFECTION
DELIVERY
BUT
BEFORE
Paras: BUYER
H. RISK OF LOSS
=========================================
Tolentino: SELLER
1. GENERAL RULE
Legal consequences from point of perfection
are the same in both legal systems: upon
perfection of an unconditional contract of
sale involving specific or determinate
subject matter, the risk of loss deterioration
and the benefits of fruits and improvements,
were fro the account of the buyer.
If Subject matter is GENERIC, Simply replace
item.
================================
I. DOCUMENTS OF TITLE
================================
WHO
BEARS
RISK
DETERIORATION/ FRUITS:
OF
LOSS/
1. BEFORE PERFECTION
2. AT PERFECTION
Page 162 of
1. DEFINITION
DOCUMENTS OF TITLE
ii.
Evidence
possession
therein
of
of
existence
and
goods
described
2. PURPOSE OF DOCUMENTS
=========================================
4. NON-NEGOTIABLE
TITLE
Deliver to bearer
(negotiation by mere delivery)
2.
Deliver to specific
person or his order (negotiation by
endorsement + delivery)
OF
right
than
2.
3.
DOCUMENTS
is
=========================================
Page 163 of
right
to
negotiate
or
Transferor/holder
acquires title to
goods
Acquires title to
goods against
transferor
Acquires right to
notify bailee so
that he acquires
obligation of bailee
to hold goods for
him
NON NEGOTIABLE:
o
is
a
NEGOTIABLE:
o
Negotiation is enjoined
NEGOTIATION
ASSIGNMENT
2. CONSUMMATION STAGE
a. Contract of sale is valid because it
has passed perfected stage, despite
seller not being the owner or seller
having no authority to sell
b. What is void is the transfer of title/
ownership did not pass
c. Effect: buyer acquired no better right
than transferor
d. Legal effect: CAVEAT
BUYER BEWARE
EMPTOR
Page 164 of
J. REMEDIES OF UNPAID
SELLER
================================
TOPICS UNDER THE SYLLABUS
J. Remedies of an Unpaid Seller
1. Definition of unpaid seller (Art.
1525)
2. Remedies of unpaid seller
=========================================
in good faith
for value
REQUISITES:
1. Subject matter goods
2. Seller is unpaid not completely paid or
received negotiable instrument under a
condition and condition has been breached by
reason of dishonor
3. Physical possession is with seller
=========================================
================================
Page 165 of
G
oods are in transit
Requisites when goods are in transit
1. From the time goods are
delivered to carrier for purpose of
transmission to buyer
2. Goods rejected by buyer and
carrier continues to possess them
Possessory Lien
1. Seller not bound to deliver if buyer has
not paid
him the price
3. Exercisable
only
circumstances:
following
a.
b.
in
c.
d.
obtains
3. Waiver
Stoppage In Transitu
Page 166 of
================================
K. PERFORMANCE OF
CONTRACT
================================
TOPICS UNDER THE SYLLABUS
K. Performance of Contract
1. Delivery of thing sold
(1) Sale of movables (Arts. 1522,
1537, 1480)
(2) Sale of immovables (Arts.
1539, 1543)
(3) Inspections and Acceptance
2. Payment of price
=========================================
the rest
ii. Accept the whole pay price
stipulated
iii. Eject whole if subject matter is
indivisible
d. When the seller delivers to
Page 167 of
ii. Reject
goods
indivisible
entirely
if
i.
When price
indicated
per
unit
not
B. IMMOVABLES
o Sold per unit or number
Page 168 of
=========================================
1. EXPRESS WARRANTIES
K. PERFORMANCE OF CONTRACT
2. Payment of price
=========================================
2. PAYMENT OF PRICE
Buyer is obligated to pay price according to
terms agreed upon regarding time, place and
amount
If payment of interest is stipulated must pay; if
amount of interest not mentioned apply legal
rate
================================
L. WARRANTIES
================================
TOPICS UNDER THE SYLLABUS
L. Warranties
1. Express warranties
2. Implied warranties (Art. 1547)
3. Effects of warranties
4. Effects of waivers
5. Buyers options in case of breach
of warranty (Art. 1599)
I. Condition
1. When a contract contains a condition, the
non happening of which would not constitute
a breach but extinguishes the obligation
2. However, if party to the sales contract has
promised that the condition should happen
or be performed, the non-performance of
which may be treated by parties as breach
II. Warranties
A statement or representation made by the
seller contemporaneously and as a 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 insure that
certain facts are or shall be as he then
represents
Express Warranties
REQUISITES:
1. It must be an affirmation of fact or any
promise by seller relating to the subject
matter of sale
2. Natural tendency of affirmation or
promise is to induce buyer to purchase
subject matter
3. Buyer purchases
relying thereon
the
4. When breached,
damages
seller
subject
is
matter
liable
=========================================
Page 169 of
for
1.
V
=========================================
alue of the thing at the time of eviction;
2.
2. Implied warranties
3.
=========================================
4.
2. Implied Warranties
5.
L. WARRANTIES
Partial Eviction
Implied,
unless
provision appears in contract
aa
aa
Requisites
of
warranty against eviction:
contrary
breach
of
until
Page 170 of
5.
.
patent
Defects on animals
Even in the case of professional
inspection but hidden defect is of such
nature that expert knowledge is not
sufficient to discover it - defect shall be
considered as REDHIBITORY
from
Page 171 of
Buyer
may
elect
between
withdrawing
from
sale
and
demanding proportionate reduction
of price with damages in either case
L. WARRANTIES
3. Effects of warranties
=========================================
3. EFFECTS OF WARRANTIES
=========================================
=========================================
4. EFFECTS OF WAIVER
Waiver in Warranty against eviction Parties may increase or diminish implied
warranty against eviction; but effect depends on
good faith or bad faith on the part of the seller.
o
Page 172 of
in
Case
of
Breach
of
=========================================
M. BREACH OF CONTRACT
================================
M. BREACH OF CONTRACT
================================
TOPICS UNDER THE SYLLABUS
M. Breach of Contract
1. Remedies of the seller (Arts.
1636, 1594)
(1) Sale of movables
2. Recto Law: sale of movables on
installment (Arts. 1484-1486)
3. Sale of immovables
(1) PD 957, sec. 23, 24
(2)Maceda Law: sale of
immovables on Installment
Sale
on
installment:
payment by several partial payments
in small amount
Page 173 of
remedies:
alternative
and
not
Rescission
1. When chosen, there is correlative obligation
to restitute
2. But stipulations that installments paid are
forfeited are valid if not unconscionable
3. Deemed chosen when:
Notice of rescission is sent
3. SALE OF IMMOVABLES
Remedies of Seller
Anticipatory breach
1. Seller has reasonable grounds to fear loss of
immovable sold and its price, sue for
RESCISSION
2. Nonpayment of price, sue for RESCISSION
IMMOVABLES (BY INSTALLMENT)
Art 1592 Applies only to contract of sale
MACEDA LAW
1. applies to COS and CTS and Financing
2. Coverage: REAL ESTATE defined space
vs. CONDO not defined space (w/
common areas)
1. Excluded:
a. Industrial
b. Commercial
c.
Foreclosure
i. Barring effect on recovery of balance
ii. Extent of barring effect: purchase price
iii. Exception: mortgagor refuses to deliver
property to effect foreclosure, recover also
expenses incurred in attorneys fees, etc.
(Perverse Buyer-Mortgagor)
=========================================
=========================
================
TOPICS UNDER THE SYLLABUS
M. BREACH OF CONTRACT
3. Remedies of the Buyer
=========================================
4. REMEDIES OF THE BUYER
Page 174 of
RESCIND
SUSPEND PAYMENT
COMPLIES
UNTIL
Notice needed
oppressive
waiver
thereof
if
SELLER
Other rights:
Buyer
paid
installment
less
than
years
annotated
in
st
Page 175 of
Contract of
Applicable
Sale
Rescission
is
================================
N. EXTINGUISHMENT OF SALE
1.
Payment or performance
2.
3.
Condonation or remission
4.
5.
Compensation
6.
Novation
7.
Annulment
8.
Rescission
9.
10. Prescription
================================
TOPICS UNDER THE SYLLABUS
N. Extinguishment of Sale
1. Causes (Arts. 1600, 1231)
2. Conventional redemption (Art.
1601)
3. Equitable mortgage (Arts. 16021604)
4. Distinguish from option to buy
(Art. 1602)
5. Period of redemption (Art. 1606)
6. Exercise of the right to redeem
(Art. 1616)
7. Legal redemption (Art. 1619)
8. Age redemption (Art. 1619)
=========================
================
TOPICS UNDER THE SYLLABUS
N. EXTINGUISHMENT OF SALE
2. Conventional Redemption
=========================================
2. CONVENTIONAL REDEMPTION
Only extinguishes obligations pertaining
to contract of sale, not extinguish
contract itself; only applies to contract of
sale
=========================================
1. CAUSES
I.
GROUNDS
(same
grounds
whereby
obligations in general are extinguished)
expenses
Page 176 of
=========================
================
TOPICS UNDER THE SYLLABUS
N. EXTINGUISHMENT OF SALE
3. Equitable Mortgage
vendor:
ask
for
=========================================
3. EQUITABLE MORTGAGE
=========================
================
TOPICS UNDER THE SYLLABUS
N. EXTINGUISHMENT OF SALE
4. Distinguish from option to buy
=========================================
=========================
================
TOPICS UNDER THE SYLLABUS
N. EXTINGUISHMENT OF SALE
Page 177 of
5. Period of Redemption
=========================================
5. PERIOD OF REDEMPTION
a. No period agreed upon 4 years from date
of contract
b. Period agreed upon should not exceed 10
years; if it exceeded, valid only for the first
10 years.
c.
d. Rationale:
no
redemption
due
to
erroneous belief that it is equitable
mortgage which can be extinguished by
paying the loan.
e. This refers to cases involving a transaction
where one of the parties contests or
denies that the true agreement is one of
sale with the right to repurchase; not to
cases where the transaction is conclusively
a pacto de retro sale.
f.
=========================
================
ii.
IN CASE OF MULTI-PARTIES
1. When an undivided thing is sold because
co-owners cannot agree that it be
allotted to one of them vendee a retro
may compel the vendor to redeem the
whole thing
2. When an undivided thing is sold by coowners / co-heirs, vendors a retro may
only exercise his right over his
Page 178 of
REDEMPTION
Arises after sale
There
can
be
rescission
of
the
original sale
Action
is
directed
against buyer
=========================
================
TOPICS UNDER THE SYLLABUS
N. EXTINGUISHMENT OF SALE
7. Legal Redemption
=========================================
7. LEGAL REDEMPTION
LEGAL REDEMPTION
Only applies to contracts of sale.
The right to be subrogated upon the same
terms and conditions stipulated in the
contract, in the place of one who acquires
the thing by (1) purchase OR (2) by dation in
payment OR (3) by other transaction
whereby ownership is transmitted by
onerous title.
Types of Legal Redemption:
a. Among co-heirs
i.
ii.
Page 179 of
a. Redemption of homesteads
b. Public Land Act
c.
d.
Sale of credit in litigation
i. when a credit or other incorporeal right
in litigation is sold, debtor shall have a
right to extinguish it by reimbursing
the assignee for the price the latter
paid therefor plus judicial costs,
interest
ii. debtor may exercise right within 30
days from the date assignee demands
payment from him
Other Instances When Right of Legal
Redemption is Granted
Page 180 of
III.
N. EXTINGUISHMENT OF SALE
=========================================
EFFECTS OF ASSIGNMENT
5. Debtor has knowledge but no consent may still set up compensation of debts
previous to assignment but not the
subsequent ones.
8. Age Redemption
2.
2. Assignment
of
rights
made
w/o
knowledge of debtor debtor may set up
against assignee the compensation w/c
would pertain to him against assignor of
all credits prior to assignment and of
later ones until he had knowledge of the
assignment
=========================
================
I.
1.
IV.
TRANSFER OF OWNERSHIP
1. By tradition and not by perfection
2. By execution of public instrument
because intangibles cannot be physically
transferred
Page 181 of
the
2. After Notice
a. Payment to the original creditor is
not valid as against the assignee
VIII.
1.
2.
3.
ASSIGNMENT
OF
CREDIT
OR
INCORPOREAL RIGHT IN LITIGATION
- REQUISITES:
Page 182 of
IX.
tenement
================================
================================
TOPICS UNDER THE SYLLABUS
=========================
================
TOPICS UNDER THE SYLLABUS
O. THE SUBDIVISION AND
CONDOMINIUM BUYERS PROTECTIVE
DECREE
=========================================
Page 183 of
================================
=========================
================
Membership
in
a
condominium
corporation, regardless whether stock or
non-stock,
shall
not
be
transferable
separately from the condominium unit of
which it is an appurtenance.
1. downpayment and
2. deposit or option money
RIGHTS OF THE BUYER UNDER RA 6552
WITH LESS THAN 2 YEARS OF
INSTALLMENTS:
================================
Here the buyer is not entitled to any refund
Page 184 of
H. SUCCESSION
=================================
TOPICS UNDER THE SYLLABUS
I. General Provisions (Arts. 774-780)
A. Definition/what is transmitted
(Arts. 774, 776, 781)
B. When succession occurs (Art.
777)
C. Kinds of successors: heirs,
devisees, legatees (Art. 782)
=================================
I. GENERAL PROVISIONS
SUCCESSION mode of acquisition by virtue of
which the property, rights and obligations to the
extent of the value of the inheritance, of a
person are transmitted through his death to
another or others either by his will or by
operation of law. (Art. 774)
KINDS OF HEIRS
1. Compulsory those who succeed by
force of law to some portion of the
inheritance, in an amount predetermined
by law, of which they cannot be deprived
by the testator, except by a valid
disinheritance
2. Voluntary or Testamentary those who
are instituted by the testator in his will, to
succeed to the portion of the inheritance of
which the testator can freely dispose
3. Legal or Intestate those who succeed
to the estate of the decedent who dies
without a valid will, or to the portion of
such estate not disposed of by will
ii.
After-acquired properties
d. Acceptance
or
non-repudiation
successional rights
of
ELEMENTS OF SUCCESSION
II. Causal Element (Art. 777)
I.
Subjective Element
A. Decedent person whose property is
transmitted through succession (Art.
775)
B. Successors
i.
Page 185 of
from
personal
4. Personal easements
5. Partnership rights
6. Agency
7. Life Annuity
ii.
the
the
the
to
intention
Inheritance
Refers
to
the
universality
or
entirety
of
the
property, rights and
obligations
of
a
it.
=================================
TOPICS UNDER THE SYLLABUS
II. Testamentary Succession
A. Wills
(1) In General
(a) Definition and
characteristics (Arts. 783-787)
(2) Testamentary capacity and
intent (Arts. 796-803)
(a) Age requirement (Art. 797)
(b) Soundness of mind (Arts.
798-801)
(3) Form
(a) Rules governing the formal
validity of wills (Arts. 17, 815817, 819)
(b) Common requirements (Art.
804)
(c) Notarial wills
(d) Holographic wills
(e) Joint wills (Arts. 818-819)
(4) Codicils (Arts. 825-826)
(a) Definition and formal
requirements
(5) Incorporate by reference (Art.
827)
(6) Revocation (Arts. 828-834)
(a) Kinds (Art. 830)
(7) Allowance and disallowance of
wills (Arts. 838-839)
(a) Probate requirement (Art.
838)
(b) Grounds for denying
probate (Art. 839)
=================================
Page 186 of
iii.
Determination
of
whether or not the testamentary
disposition is to be operative
A. WILLS
CONCEPT OF A WILL (Art. 783)
b.
1. It is an act;
2. Whereby a person is permitted;
i.
Distribution of specific
property or sums of money that he
may leave in general to specified
classes or causes; and
ii.
Designation
of
the
persons,
institutions
or
establishments
to
which
such
property or sums are to be given or
applied.
CHARACTERISTICS OF A WILL:
1. UNILATERAL does not need the approval
of any other person (implied in Art. 783)
2. STRICTLY PERSONAL ACT (Art. 784-785)
a.
ii.
Duration or efficacy of
the designation of heirs, devisees or
legatees;
Determination of the
portions which they are to take,
when referred to by name; and
Page 187 of
11. STATUTORY
II.
LEGAL
PRESUMPTION
IN
FAVOR
SOUNDNESS OF MIND (Art. 800):
OF
Page 188 of
FORMS OF WILL
COMMON FORMALITIES:
1. Every will must be in WRITING; and
2. Executed in a LANGUAGE or DIALECT
KNOWN to the TESTATOR (Art. 804)
SPECIAL FORMALITIES:
I.
ii.
iii.
by
Page 189 of
attestation clause at
the end or last page of
the will
bad faith
forgery
ATTESTATION v. SUBSCRIPTION
fraud
pressure
SUBSCRIPTION
2. mental act
2. mechanical act
3. Purpose is to render
available proof during
the probate that such
will had been executed
in accordance with the
formalities prescribed
by law
3. Purpose is for
identification
Page 190 of
a.
If
ii.
ii.
Once by
witnesses
one
of
the
subscribing
NOTE:
Articles
807
and
808
are
mandatory, failure to comply with either
would result in nullity and denial of probate.
II.
B.
BY
Page 191 of
A.
B.
and
C.
(a) CC of
Philippines
ALIEN
(a)CC of the
Philippines
(b)Law of His
Country
FOREIGN
COUNTRY
FILIPINO
(a) CC of
Philippines
(a) CC of
Philippines
(b) Law
where
Made
2. SUBSTANTIVE VALIDITY
Page 192 of
BY
A. Order of succession
c.
B. Capacity to succeed
C. Amount of successional rights
D. Intrinsic validity
VALIDITY OF JOINT WILLS
d. substantial transformation
thing bequeathed
B.
C.
REVOCATION OF WILLS
1. By operation of law instances of revocation
by operation of law:
of
specific
b.
AMENDMENT OF WILLS
1. Notarial only through a codicil
3. By
burning,
tearing,
canceling,
obliterating the will with the intention
revoking it, by the testator himself, or
some other person in his presence, and
his express direction.
or
of
by
by
REQUISITES:
a.
b.
c.
d.
e.
Page 193 of
OUTSIDE
PHILIPPIN
ES
Philippine Law
Philippine Law
ON
FALSE
OR
REQUISITES:
a. The cause must be concrete, factual and
not purely subjective
b. It must be false
c.
IN PHILIPPINES
Non
Domicil
e
LAW
Philippine Law
REVOCATION BASED
ILLEGAL CAUSE
LAW FOR
REVOCATION
Domicil
e
Page 194 of
In
b.
REVIVAL
after
the
testators
by
revoked
Restores
will
II.
Takes
place
operation of law
a
Previously revoked
I.
REPUBLICATION
PROBATE OF A WILL
Page 195 of
DISALLOWANCE
Given
decree
by
judicial
Always
cause
for
legal
B. INSTITUTION OF HEIRS
INSTITUTION OF HEIR
1. It is an act by virtue of which a testator
designates in his will
2. The person or persons who are to succeed
him in his property and transmissible
3. Rights and obligations
b.
a.
Page 196 of
a.
b.
ANNULMENT
OF
Intestacy Results if
a. the heir institutes an aliquot portion of
the estate
b. to only one heir If the heir institutes
several heirs to an aliquot part of the
ELEMENTS OF PRETERITION
1. There must be an omission of one, some or
all of the heir/s in the will
2. The
omission
must
COMPULSORY HEIR
be
that
of
b.
c.
EFFECTS OF PRETERITION:
1. The institution of heir is annulled
2. Devises and legacies shall remain valid as
long as they are not inofficious
3. If the omitted compulsory heir should die
before the testator, the institution shall be
effectual, without prejudice to the right of
representation
DISTINGUISH PRETERITION FROM
DISINHERITANCE
PRETERITION
Deprivation
of
a
compulsory heir of his
legitime is tacit
DISINHERITANCE
Deprivation
of
compulsory
of
legitime is express
Page 197 of
the
his
Always voluntary
If
disinheritance
is
unlawful,
compulsory
heir is merely restored
to his legitime
REQUISITES FOR
SUBSTITUTION:
1. A fiduciary or
with the dual
transmit to a
second heir
inheritance
C. SUBSTITUTION OF HEIRS
CLASSES OF SUBSTITUTION
1. Vulgar or Simple the testator may
designate one or more persons to substitute
the heir or heirs instituted in case such heir
or heirs should:
a. die before him (PREDECEASE)
b. should not wish, (RENOUNCE) or
c.
FIDEICOMMISSARY
D. CONDITIONAL TESTAMENTARY
DISPOSITIONS AND DISPOSITIONS WITH
A TERM
TESTAMENTARY DISPOSITIONS
1. Condition future or uncertain event, or a
past event unknown to the parties, upon
Page 198 of
already
an
heir;
one
who
conditionally is not yet an heir.)
RULES ON POTESTATIVE,
MIXED CONDITIONS
1.
INTERPRETATION
CASUAL
AND
POTESTATIVE
inherits
a.
b.
2.
CASUAL OR MIXED
Positive
iii.
ii.
Constructive Compliance
Page 199 of
T
he portion of the decedents estate reserved
by law is called the legitime.
1. if
3rd
party
applicable
interested
NOTE:
a. Mere estrangement is not a ground for the
disqualification of the surviving spouse as
heir
b. Effect of decree of legal separation:
i. On the offending spouse disqualified
ii.On the innocent spouse no effect
c. Death of either spouse during the
pendency of a petition for legal separation
dismissal of the case
Illegitimate children and descendants
(legitimate or illegitimate)
E. LEGITIMES
Page 200 of
Testator is a
Legitimate Person
Testator is an
Illegitimate Person
Legitimate
children
and descendant
Legitimate
children
and descendants
In
default
of
the
foregoing,
legitimate
parents
and
ascendants
Illegitimate
parents
and ascendants
Surviving spouse
In
default
of
the
foregoing, illegitimate
parents only
Illegitimate
children
and descendant
Surviving spouse
GENERAL
LEGITIMES
IN
1.
RULES
ASCERTAINING
2.
Non-impairment of legitime
a. Any compulsory heir who was given title
less than his legitime may demand that
the same be completed (Art 906)
following
EXCEPTIONS:
the
Page 201 of
Page 202 of
HEIR
LEGITIME
FREE PORTION
1/2
1/2
1/2
1/2
CHILDREN 1/2
1/4
1 (ONE) LEGITIMATE
CHILDREN/DESCENDANT & SURVIVING
SPOUSE
LEGITIMATE CHILDREN (LC) & SPOUSE
SPOUSE -1/4
CHILDREN 1/2
SPOUSE EQUAL TO SHARE
WHAT REMAINS
OF 1 (ONE) LC
LEGITIMATE CHILDREN (LC) &
ILLEGITIMATE CHILDREN (ILC)
LC -1/2
ILC 1/2 OF SHARE OF 1 (ONE)
LC
ANY)
LEGITIMATE
PARENTS/ASCENDANT 1/2
1/4
SPOUSE 1/4
LEGIMITATE PARENTS/ASCENDANTS &
LEGITIMATE
ILLEGIMTATE CHILDREN
PARENTS/ASCENDANTS 1/2
1/4
ILC 1/3
1/3
SPOUSE 1/3
LEGIMIATE CHILDREN/DESCENDANTS,
SURVIVING SPOUSE & ILLEGITIMATE
CHILDREN
LC 1/2
SPOUSE EQUAL TO 1 (ONE)
WHATEVER
REMAINS
LC
ILC 1/2 OF SHARE OF ONE (1)
LC
Page 203 of
LEGITIMATE PARENTS/ASCENDANTS,
LEGIMIATE
PARENTS/ASCENDANTS 1/2
1/8 ESTATE
CHILDREN
SPOUSE 1/8
ILC 1/4
SURVIVING SPOUSE
GENERALLY
1/2
1/2
ARTICULO
1/3
2/3
1/2
1/2
ILLEGITIMATE PARENTS
1/2
1/2
1/2
MORTIS
SPOUSE
SPOUSE 1/4
Page 204 of
RESERVA TRONCAL
RESERVA TRONCAL: The reservation by virtue
of which an ascendant who inherits from his
descendant any property which the latter may
have acquired by gratuitous title from another
ascendant or a brother or sister, is obliged to
reserve the property for the benefit of relative
within the 3rd degree and who belong from the
same line from which the property came from.
1.
2.
3.
4.
The
property
should
have
been
previously acquired by gratuitous title by
the propositus from another ascendant or
from a brother or sister (ORIGINATOR).
NOTE:
gratuitous
encompasses
transmissions by donation, remission, and
testate or intestate succession.
3.
d.
2
EVENTS
TO
BE
CONSIDERED
TO
DETERMINE
THE
RIGHT
OF
THE
RESERVATARIOS OVER THE RESERVABLE
PROPERTY
1.
Reserva Minima
Every single property
in
the
Prepositus
estate
must
be
deemed to pass, partly
by will and partly by
operation of law, in the
same proportion that
the part given by will
bears to the part not so
given
Minima
finds
wider
acceptance here
ii.
Remedy is to demand
for completion of
legitime
DISINHERITANCE
CAUSES OF VACANCY IN SUCCESSION
1. Disinheritance - The testator creates it
himself
2. Repudiation - The heir does something
3. Incapacity/Predecease - Something happens
to the heir
HOW VACANCIES ARE FILLED
1. Substitution
2. Representation
3. Accretion
DISINHERITANCE
1. Heir is being deprived of his legitime.
2. Only in cases of testate succession.
NOTE:
Counterpart
in
intestate
is
unworthiness.
3. Even if validly disinherited, heir can still be
validly restored in the legitime by
RECONCILIATION.
4. Reconciliation when in speaking terms
again, no particular form
5. In unworthiness, there must a pardon in
writing to remove incapacity to inherit.
However, it does not have to be in a will.
6. If
grounds
for
disinheritance
and
unworthiness are common, reconciliation
does not erase the fact that the heir is
unworthy.
7. As long as there is reconciliation, it should
be considered to have revoked the
inheritance as well as the unworthiness.
8. Ineffective disinheritance v. Preterition
REQUIREMENTS
FOR
VALID
DISINHERITANCE
1. Effected only through a valid will;
NOTE: Will containing disinheritance must
be probated.
2. For a cause expressly stated by law;
3. Cause must be expressly state in the will
itself;
4. Cause must be certain and true;
5. Unconditional;
6. Total; AND
7. The heir disinherited must be designated in
such a manner that there can be no doubt as
to his identity.
EFFECTS OF DISINHERITANCE
1. Total exclusion of the compulsory heir in
from the inheritance, which includes his
legitime, his intestate portion, and any
c.
slander,
offensive
language, insult, libel. May be spoken
or written.
b. By deed no need for violence,
something which caused the testator
to be humiliated. Laying hands if not
under attempt on life.
2. Leading a disgraceful life (or dishonest)
one
parent
a.
b.
Parent v. parent
Even if parents are not married, it is
still a ground.
c.
No need for conviction. As long as
the heir can prove that there is an
attempt.
d.
They do not need to be spouses.
However, the testator must be a
common child.
Grounds for Disinheritance Only against
spouse refers to legal spouses only,
legally married to each other
1. Giving cause for legal separation
a.
No need for previous conviction
b.
Prove infidelity if cause is contested
c.
No need to prove grounds unless
contested by the heir.
d.
Legal separation instituted but not
terminated, OK
e.
If there is already a decree:
i.
Ground is conclusive
ii.
But, there is a need to
disinherit
iii.
Effects: Guilty spouse is not
entitled to inherit.
f.
See 10 causes under the Family
Code.
GROUND
CHILD/
PARENT/
DESCEND
ASCEND
SPOUSE
to
not
N/A
N/A
testator,
spouse,
ascendant, descendant
Accusation of a crime with
penalty of six years
Induce
testator
Support
unjustifiably
given
Grounds
Specific
Particular Heir
to
1.Maltreatment
1. Abandonment
of testator
2.
parents
Leading
disgraceful life
3.
of crime which
the
2. Attempt
with
it
penalty
of
civil interdiction
against
parent.
1 Giving Cause
Legal
on
the
Commission
carries
by
another
Separation
2. Support
IMPERFECT
DISINHERITANCE
Person disinherited may
be any compulsory heir
EXPRESS
INTENTIONAL
partial annulment
institution of heirs
of
PRETERITION
The person omitted
must be a compulsory
heir in the direct line
IMPLIED
EITHER intentional or
unintentional
Effect:
total
annulment
of
institution of heirs
REVOCATION OF DISINHERITANCE
1.
Reconciliation
NOTE: This refers to the resumption of
genuine cordial relationship between the
testator
and
the
disinherited
heir,
approximating that which prevailed before
the testator learned of the cause for
disinheritance, reciprocally manifested by
their actions subsequent to the act of
disinheritance.
2.
Subsequent institution of
the disinherited heir
3.
Nullity of the will which
contains the disinheritance
NOTES:
Compulsory heir;
Voluntary heir;
Legatee or devisee;
Estate.
General Rule:
1. If testator ordered acquisition of the thing - the
order should be complied with. If the owner is unwilling to
part with the thing, the legatee/devisee should be given
the monetary equivalent
2. If testator erroneously believed that the thing
belonged to him - legacy/device is void
Exception: if testator acquire the thing onerously or
gratuitously after making of the disposition, disposition is
validated
3. If testator knew that the thing did not belong to
him but did not order its acquisition - code is silent
but disposition should be considered valid - there is an
implied order to acquire and doubts must be resolved in
favor of intestacy
1.
2.
b.
ii.
3.
Legacy/Devise to remove an
encumbrance over a thing
belonging to testator (Art 932
par 2)
BASIC
PRINCIPLES
SUCCESSION
=================================
TOPICS UNDER THE SYLLABUS
III. Legal or Intestate Succession
(Arts. 960-1014)
A. General provisions (Arts. 960969)
(1) Relationship (Arts. 963-969)
(2) Right of representation (Arts.
970-977)
B. Order of intestate succession
(Arts. 978-1014, 992)
=================================
III. GENERAL PROVISIONS ON LEGAL
OR INTESTATE SUCCESSION
LEGAL OR INTESTATE SUCCESSION: That
which is effected by operation of law in the
absence or default of a will.
CAUSES OF
GENERAL
1.
2.
INTESTATE
SUCCESSION
IN
IN
INTESTATE
5.
6.
7.
Number
of
generations determines proximity
Each
generation
forms a degree
A series of degrees
forms a line
A line may be direct
or collateral. A direct line is that constituted
by the series of degrees among ascendants
and
descendants
(ascending
and
descending)
A collateral line is that
constituted by the series of degrees among
persons who are not ascendants or
descendants, but who come from a common
ancestor.
Full
blood:
same
father and mother, half blood: only one of
either parent is the same.
In adoption, the legal
filiation is personal and exists only between
adopter and the adopted. The adopted is
deemed a legitimate child of the adopter.
2.
WHEN
REPRESENTATION
1. Predecease
2. Incapacity of Unworthiness
3. Disinheritance
NOTE: In case of repudiation, accretion
takes place.
CHARACTERISTICS OF REPRESENTATION
1. A right of subrogation
2. Exception to the rule on proximity and
equal division
3. Called to succession by law
4. Representative succeeds the decedent
and NOT the person represented
5. Takes place when there is vacancy in the
inheritance
brought
about
by
predecease, incapacity, or disinheritance
6. As a general rule, exercised only by the
grandchildren of the decedent
TESTAMENTARY
INTESTATE
When Takes Place
COMPULSORY HEIR:
LEGAL HEIR:
dies before the
testator
dies
before
testator
is unworthy to
succeed
is
unworthy
succeed
is disinherited
Effects Upon
Acquires the right
with respect to the
legitime
Per stirpes
the
to
The Division
Acquires the right
with respect to the
entire legal portion
Per stirpes
IN
WHAT
KINDS
OF
REPRESENTATION OPERATES
1.
2.
SUCCESSION
Legitimes
The children and descendants of the person
disinherited shall take his or her place and
shall preserve the rights of compulsory heir
with respect to the legitime (Art 923)
And only when the heir to be
represented:
a. Predecease, becomes incapacitated, or
was disinherited by the testator.
b. Is a compulsory heir.
c. No right of representation if the heir to
be represented is a voluntary heir.
Intestate succession
Representation occurs in all intestate
estate. All legal heirs may be represented
when proper. (It is not proper only when the
heir to be represented repudiated his share
in the inheritance)
OUTLINE OF RULES:
KIND OF HEIR
Compulsory
Voluntary
Legal
Predecease
Incapacity
Renunciation
Transmits
nothing;
Transmits
nothing;
Transmits
nothing;
Transmits
nothing;
Representation
Representation
NO
Representation
Representation
Transmits
nothing;
Transmits
nothing;
Transmits
nothing;
Not applicable
NO
Representation
NO
Representation
NO
Representation
Transmits
nothing;
Transmits
nothing;
Transmits
nothing;
Representation
Representation
NO
Representation
3.
Not applicable
An adopted child
can neither represent nor be represented
Disinheritance
Intestacy:
a. In the direct descending line.
QUALIFICATIONS TO REPRESENT
b.
ILLEGITIMATE
OR
If the child to be
represented is legitimate only legitimate
children and descendants can represent him.
2.
If the child to be
represented is illegitimate both legitimate
and illegitimate children/descendants can
represent him.
have
1.
Factual Situation
Division
EFFECTS OF REPUDIATION
1. By representative right of representation is
present
Example: A child who repudiates his
inheritance when his father died may still
represent the latter when his grandfather
dies.
2. By heir no right of representation
ORDER OF INTESTATE SUCCESSION
INTESTATE HEIRS: Those who are called by
law to the succession either in the absence of a
will or of qualified heirs, and who are deemed
called based on the presumed will of the
decedent.
REGULAR ORDER OF SUCCESSION
1. Legitimate Children/Descendants
2. Illegitimate Children/Descendants
3. Legitimate Parents/ Ascendants
4.
Illegitimate Parents
5. Surviving Spouse
5. Brothers, Sisters, Nephews, Nieces
6. Other Collaterals to the 5th degree
7. State
NOTE: Decedent is a legitimate person
ORDER OF SUCCESSION (If descendent is a
legitimate person)
1. Legitimate Children/Descendants
2. Illegitimate Children/Descendants
3. Illegitimate Parents
4. Surviving Spouse
5. Brothers, Sisters, Nephews, Nieces
6. State
EXCLUDES
CONCURS WITH
EXCLUDED
BY
Legitimate children
and Legitimate
descendants
Ascendants,
collaterals
and state
No one
Surviving spouse
Illegitimate children
and Descendants
Illegitimate
parents,
collaterals
and state
No one
Legitimate parents
and legitimate
ascendants
Collaterals
and state
Legitimate
children
Illegitimate
children and
surviving spouse
Illegitimate parents
Collaterals
and state
Legitimate
children and
illegitimate
children
Surviving spouse
Surviving spouse
Collaterals
other than
siblings,
nephews and
nieces
No one
Legitimate
children
Illegitimate
children
Surviving spouse
Legitimate
children and
legitimate parents
Illegitimate
children
Legitimate
parents and
Illegitimate
parents
Siblings, nephews
nieces
All other
collaterals
and state
Legitimate
children,
illegitimate
children,
Surviving spouse
Legitimate
parents and
illegitimate
parents
Other collaterals
within 5th degree
Collateral
remoter in
degree and
state
Legitimate
children
Illegitimate
children
Legitimate
parents
Illegitimate
Collaterals in the
same degree
parents and
Surviving
spouse
State
No one
Everyone
No one
LEGITIME
FREE PORTION
TOTAL
(1/2)
(1/2)
100%
(1/2)
(1/2)
100%
1 (ONE) LEGITIMATE
CHILDREN/DESCENDANT &
SURVIVING SPOUSE
LEGITIMATE CHILDREN (LC) &
SPOUSE
LEGITIMATE
PARENTS/ASCENDANT &
SURVIVING SPOUSE
CHILDREN 1/2
SPOUSE -1/4
SPOUSE -1/4
CHILDREN 1/2
LC -1/2
ILC 1/2 OF
SHARE OF 1
(ONE) LC
LEGITIMATE
PARENTS/ASCEN
DANT 1/2
LEGITIMATE
PARENTS/ASCEN
DANTS 1/2
SPOUSE - 1/2
ENTIRE
ESTATE IS
DIVIDED
EQUALLY
BETWEEN
TOTAL
NUMBER OF
CHILDREN &
SPOUSE
SPOUSE EQUAL
TO SHARE OF 1
(ONE) LC
SPOUSE 1/4
LEGIMITATE
PARENTS/ASCENDANTS &
ILLEGIMTATE CHILDREN
CHILDREN
1/2
WHOLE
ESTATE
DIVIDED BY
THE RATIO OF
2:1 FOR EACH
LEGITIMATE
CHILD AS
COMPARED TO
THE
ILLEGITIMATE
CHILD
PARENT 1/2
SPOUSE -1/4
SPOUSE - 1/2
PARENTS - 1/2
ILLEGIMITATE
CHILDREN 1/4
ILLEGITIMATE
CHILDREN - 1/4
ILC - 1/2
ILC 1/3
ILC - 1/6
ILC - 1/2
SPOUSE 1/3
SPOUSE - 1/6
SPOUSE - 1/2
LEGIMIATE
CHILDREN/DESCENDANTS,
SURVIVING SPOUSE &
ILLEGITIMATE CHILDREN
WHOLE
ESTATE
DIVIDED BY
THE RATIO OF
2:1 FOR EACH
LEGITIMATE
CHILD AS
COMPARED TO
THE
ILLEGITIMATE
CHILD
LC 1/2
SPOUSE EQUAL
TO 1 (ONE) LC
ILC 1/2 OF
SHARE OF ONE
(1) LC
LEGITIMATE
PARENTS/ASCENDANTS,
SURVIVING SPOUSE, &
ILLEGITIMATE CHILDREN
LEGIMIATE
PARENTS/ASCEN
DANTS 1/2
SPOUSE 1/8
LEGITIMATE
PARENTS - 1/2
SPOUSE - 1/4
ILC - 1/4
SPOUSE - 1/8
ILC 1/4
SURVIVING SPOUSE
GENERA
LLY
(1/2)
(1/2)
100%
ARTICUL
O
MORTIS
(1/3)
(2/3)
100%
(1/2)
(1/2)
100%
ILLEGITIMATE PARENTS
(1/2)
(1/2)
100%
ILLEGITIMATE
PARENTS 1/4
ILLEGITIMATE
PARENTS - 1/4
SPOUSE - 1/4
ILLEGIMITATE
PARENTS - 1/2
SPOUSE - 1/2
SPOUSE 1/4
SIBLINGS, NEPHEWS &
NIECE
(1/2)
(1/2)
100%
SPOUSE 1/2
SPOUSE (1/2)
NEPHEWS/SIBLINGS
(1/2)
NEPHEWS/SIB
LINGS 1/2
How Property is
to be Used
a.
For
the
benefit
of
public
educational and charitable institutions in
the respective municipalities/cities
b.
Alternatively, at the instance of
an interested party, or motu proprio, the
court may order the permanent trust for
the benefit of the institutions concerned
CARDINAL
PRINCIPLES
OF
INTESTATE
SUCCESSION (By Justice Paras)
1. Even if there is an order of intestate
succession, the compulsory heirs are never
excluded. The Civil Code follows the
concurrence theory, not the exclusion
theory.
2. Right of Representation in the collateral line
occurs only in intestate succession, never in
testamentary
succession
because
a
voluntary heir cannot be represented
(collateral relatives are not compulsory
heirs)
3. The intestate shares are either equal to or
greater than the legitime.
4. General Rule: Grand Children always inherit
by Right of Representation, provided
representation is proper.
Exception: Whenever all the children
repudiate, the grandchildren inherit in their
own right because Right of Representation
would not be proper
5. Nephews and nieces inherit either by Right
of Representation or in their Own Right
a. Right of Representation when they
concur with aunts and uncles (provided
that Right of Representation is proper)
b. Own Right: when they do not concur with
aunts and uncles
6. Illegitimate Children and Descendants of
legitimates cannot represent because of the
barrier, but both the Illegitimate and
Legitimate Children and Descendants of
Illegitimates can.
7. There can be reserva troncal in intestate
succession
=================================
TOPICS UNDER THE SYLLABUS
IV. Provisions Common to Testate
and Intestate Succession (Arts. 10151105)
A. Right of accretion (Arts. 10151023)
(1) Definition and requisites (Arts.
1015-1016)
B. Capacity to succeed by will or
intestacy (Arts. 1024-1040)
(1) Persons incapable of
succeeding (Arts. 1027, 739,
1032)
(2) Unworthiness vs.
Disinheritance
C. Acceptance and repudiation of
the inheritance (Arts. 1041-1057)
D. Collation (Arts. 908-910, 10611062)
E. Partition and distribution of
a.
2. Juridical Persons
Organizations or associations which
possess juridical personality
3.
iii.
c.
would
receive
by
accretion:
considered as tacit acceptance.
If gratuitous in favor of one
or some of his co-heirs deemed
conveyance in favor of the co-heirs
specified, hence there is acceptance.
If onerously:
There
is
no
repudiation
Transfer considered
to be with consideration
There are also tax
implications because there are two
transfers.
EFFECTS
OF
ACCEPTANCE
AND
REPUDIATION
General Rule: irrevocable
Exception:
1. if made through any of the causes that
vitiates
consent
(mistake,
violence,
intimidation, undue influence and fraud)
2. when an unknown will appears
COLLATION: the act by virtue of which, the
persons who concur in the inheritance bring
back to the common hereditary mass the
property which they have received from him, so
that a division may be effected according to law
and the will of the testator.
To collate is to bring back or to return to the
hereditary mass, in fact or by fiction, property
which came from the estate of the decedent,
during his lifetime, but which the law considers
as an advance from the inheritance
PROPERTIES OR RIGHTS RECEIVED BY
COMPULSORY HEIR NOT SUBJECT TO
COLLATION
1. Property left by will
2. Property which may have been donated by
an ascendant of the compulsory heir
3. Property donated to the spouse of the
compulsory heir
4. Expenses for support, education, medical
attendance even in extraordinary illness,
apprenticeship, ordinary equipment or
customary gifts
5. Expenses incurred by parents in giving their
children a professional, vocational, or other
career
6. Wedding gifts consisting of jewelry, clothing
and outfit, given by parents or ascendants,
so long as they do not exceed 1/10 of the
disposable portion
OPERATIONS RELATED TO COLLATION
1. Collation adding to the mass of the
hereditary estate the value of the donation
or gratuitous disposition
PROHIBITION TO PARTITION
1. The prohibition to partition for a period not
exceeding 20 years can be imposed on the
legitime.
2. If the prohibition to partition is for more than
20 years, the excess is void.
3. Even if a prohibition is imposed, the heirs by
mutual agreement can still make the
partition.
Requisites:
1.
There must be
several co-heirs
2.
That one of them
sells his right to a stranger
3.
That the sale is
made before the partition
4.
That the right of
redemption must be exercised by one or
more of the co-heirs within 1 month from
the time they were notified in writing by
the co-heir vendor
5.
The
vendee
is
reimbursed for the price of the sale.
EFFECTS OF PARTITION
Confers upon each heir the exclusive
ownership of the property adjudicated.
After the partition, the co-heirs shall be
reciprocally bound to warrant the title to
(warranty against eviction) and the quality of
(warranty against hidden defects), each
property adjudicated.
The obligation of warranty shall cease in the
following cases:
i.
When the testator himself has
made the partition unless his intention
was otherwise, but the legitime shall
always remain unimpaired.
ii.
When it has been expressly
stipulated in the agreement of partition,
unless there has been bad faith.
iii.
When the eviction was due to
a cause subsequent to the partition, or
has been caused by the fault of the
distributee of the property.
EFFECTS OF INCLUSION OF INTRUDER IN
PARTITION
1. Between a true heir and several mistaken
heirs Partition is VOID
END OF DISCUSSION
=========================
=================
III. LEASE
=========================
========
TOPIC UNDER THE SYLLABUS:
A. Lease of Things
B. Lease of Work or Services
C. Lease of Rural and Urban Lands
1. Qualified persons
2. Registration
3. Prohibitions
D. Contract for Piece of Work
E. Rights and Obligations of Lessor
and Lessee
=========================
========
CONTRACT
OF LEASE OF
SERVICE
(Locatio
Operarum)
CONTRACT
OF LEASE
OF THING
The object of
contract is the
service itself
and not the
result which it
generates
The object
of contract
is a thing
Even if the
result
intended is
not attained,
the services of
the lessor
must still be
paid.
In case of
breach, no
action for
specific
performance
Lessor has
to deliver
the thing
leased.
In case of
breach,
there can be
an action for
specific
performance
Elements
Of
A
Tenancy
Agreement
(PACAPS)
1. Parties are the landowner and the tenant or
agricultural lessee
2. Subject matter of the relationship is an
agricultural land
It is limited to the
use specified in the
contract
Lessor places and
maintains the lessee
in
the
peaceful
enjoyment of the
thing
Its term is generally
for a definite period
It may be created by
contract as a general
rule
Lessee has no duty
to make repairs
Lessee has no duty
to pay taxes
Lessee
cannot
constitute a usufruct
of
the
property
leased
SUBLEASE
A lessee may sublease the thing leased
unless there is an express prohibition to do
so
Remedy of lessor if lessee violates
prohibition: action for rescission of the lease
and damages
If the prohibition to sublease is not express
but only implied, the sublease will still be
allowed
Duration of sublease cannot be longer than
that of the lease to which it is dependent
The prohibition against subleasing may not
embrace the taking in of boarders. Mallarte
v. Court of Appeals, G.R. No. 85108
(1989)
In a sublease arrangement, there are two
distinct leases: the principal lease and the
sublease.
SUBLEASE DISTINGUISHED FROM AN
ASSIGNMENT OF A LEASE
SUBLEASE
ASSIGNMENT
Lessee remains a Lessee is disassociated
party in the contract
from
the
original
contract of lease
Two leases and two
Only one (lessordistinct juridical
assignee who becomes
relationship (lessorthe lessee) because
lessee and sublessor- lessee transmits
sublessee)
absolutely his rights and
his personality
disappears
Sublessee does not Assignee has a direct
have
any
direct action against the lessor,
action against the there being novation
lessor
Subleasing is allowed Assignment
is
not
unless there is an allowed unless the lessor
express prohibition
gives his consent
NOTE: The sub-lessee is primarily liable to his
sub-lessor and only a court can
extinguish or modify this primary liability
if the sub-lessor contests the pretermination of the principal lease by the
lessor. Tamio v. Ticson, G.R. No.
154895 (2004)]
Circumstances When A Sublessee Is Made
Liable To The Lessor:
1. For all acts which affect the use and
preservation of the thing leased in the
IV. PARTNERSHIP
=========================
========
TOPICS UNDER THE SYLLABUS
A. CONTRACT OF PARTNERSHIP
B. RIGHTS AND OBLIGATIONS OF
PARTNERSHIP
C. RIGHTS AND OBLIGATIONS OF
PARTNERS AMONG THEMSELVES
D. OBLIGATIONS OF
PARTNERSHIP/PARTNERSHIP TO
THIRD PERSONS
E. DISSOLUTION
F. LIMITED PARTNERSHIP
=========================
========
CHAPTER 1: GENERAL PROVISIONS
A. CONTRACT OF PARTNERSHIP
1. DEFINITION
b.
c.
"kept
secret
among
the
members" - secrecy directed not to third
persons but to some of the partners
This does not mean that there
could be no contractual relations amongst
the parties; there is only no partnership or
association with distinct legal personality
CHARACTERISTICS:
1. Essentially contractual in nature (Art. 1767,
1784)
2. Separate juridical personality (Art. 1768)
3. Delectus personae
4. Mutual Agency (Art. 1803)
5. Personal liability of partners for partnership
debts
3. RULES TO DETERMINE EXISTENCE
GENERAL RULE: Persons who are NOT partners
as between themselves, CANNOT be partners as
to third persons. (Art. 1769(1))
EXCEPTION: Partnership by Estoppel under Art.
1825
Other Rules to Determine whether a
partnership exists: (Art. 1769)
The following, alone, do not establish partnership
1. Co-ownership or co-possession
2. Sharing of gross returns, whether or not the
persons sharing them have a joint or
common right or interest in any property
from which the returns are derived;
Receipt by a person of a share of the profits of a
business is prima facie evidence that he is a
partner in the business, UNLESS such were
received in payment:
1. Debt by installments or otherwise;
2. Wages or rent;
3. Annuity;
4. Interest on loan;
5. Consideration for sale of goodwill of
business/other property by installments
A partnership must have a lawful object or
purpose, and must be established for the
common benefit or interest of the partners.
When an unlawful partnership is dissolved by a
judicial decree, the profits shall be confiscated in
favor of the State, without prejudice to the
provisions of the Penal Code governing the
confiscation of the instruments and effects of a
crime.
EFFECTS OF AN UNLAWFUL PARTNERSHIP:
1. Void ab initio - never existed in the eyes of
the law. (Art. 1409(1))
for
its
LIABILITIES IN ESTOPPEL
All partners
Partnership is liable
consented to
representation
No existing
Person who represented
partnership & all
himself & all those who
those represented
made representation liable
consented;
pro-rata/jointly
Not all partners of
existing partnership
consents to
representation
No existing
Person who represented
partnership & not
himself liable & those who
all represented
made/consented to
consented;
representation separately
None of partners in
liable
existing partnership
consented
8. PARTNERSHIP VS. JOINT VENTURE
Particular partnership distinguished from
joint venture: Heirs of Tan Eng Kee v. CA, G.R.
No. 126881, October 3, 2000
A particular partnership is distinguished from
joint venture, to wit:
1. A joint venture (an American concept similar
to our joint account) is a sort of informal
partnership, with no firm name and no legal
personality.
In
a
joint
account,
the
participating
merchants
can
transact
business under their own name, and can be
individually liable therefore; and
2. Usually, but not necessarily a joint venture is
limited to a single transaction, although the
business of pursuing to a successful
termination may continue for a number of
years; a partnership generally relates to a
continuing business of various transactions of
a certain kind.
It would seem that under Philippine law, a joint
venture is a FORM of PARTNERSHIP,
specifically a particular partnership which has for
its object specific undertaking.
The Supreme Court has, however, recognized
a distinction between these two business
forms and has held that although a
corporation cannot enter into a partnership, it
may, however, engage in a joint venture with
others. Aurbach v. Sanitary Wares, 180
SCRA 130 (1989)
9. PROFESSIONAL PARTNERSHIP
General
Professional
Partnership (Art.
1767, Par. 2): Two or more persons may also
form a partnership
profession.
for
the
exercise
of
MUTUAL AGENCY
(According to Dean Villanueva)
Juridical
personali
ty
PARTNERS
HIP
Created by
a contract,
by mere
agreement
of the
parties
Has a
juridical
personality
separate
and distinct
from that
of each
partner
Purpose
Realization
of profits
Duration/
Term of
existence
No
limitation
COOWNER
SHIP
Created
by law
None
Common
enjoymen
t of a
thing or
right
10 years
maximu
m
Disposal/
Transfera
bility of
interest
Partner
may not
dispose of
his
individual
interest
unless
agreed
upon by all
partners
Co-owner
may
freely do
so
Power to
In absence
Co-owner
act with
3rd
persons
Effect of
d
e
a
t
h
of
stipulation
to contrary,
a partner
may bind
partnership
(each
partner is
agent of
partnership
)
Death of
partner
results in
dissolution
of
partnership
CORP
Created by
law
Has a
juridical
personality
separate
and
distinct
from that
of each
stockholde
r
Depends
on AOI
50 years
maximum,
extendible
to not
more than
50 years in
any one
instance
Stockholde
r has a
right to
transfer
shares
without
prior
consent of
other
stockholde
rs
Manageme
Dissoluti May be
o dissolved
n at any time
by the will
of any or all
of the
partners
# of
incorpora
tors
Minimum of
2 persons
Commen
cement
of
juridical
personali
ty
From the
moment of
execution
of contract
of
partnership
cannot
represent
the coownershi
p
nt is
vested
with the
Board of
Directors
Death of
co-owner
does not
necessari
ly
dissolve
coownershi
p
May be
dissolved
anytime
by the
will of
any or all
of the coowners
Minimum
of 2
persons
Death of
stockholde
r does not
dissolve
corporatio
n
None
Can only
be
dissolved
with the
consent of
the state
Minimum
of 5
incorporat
ors
From date
of
issuance
of
certificate
of
incorporati
on by the
SEC
Property
may
include
intangible
or
incorporeal, e.g. credit Lim Tong
Lim v. Phil. Fishing Gear, 316
SCRA 728 (1999)
Bautista, E.
No public
Instrument, No
Inventory
VOID
With Public
Instrument, No
Inventory
VOID
De Leon
VOID
With Public
Instrument, With
VOID
VALID
No Public
Instrument, With
Inventory
Inventory
COMMERCIAL
OR
TRADING
PARTNERSHIPone
formed
for
the
transaction of business
PROFESSIONAL
OR
NON
TRADING
PARTNERSHIPone formed for the exercise
of a profession
KINDS OF PARTNERS
VOID
VALID
or
to
to
of
up
business
in
CAPITALIST
PARTNER
- cannot engage in
business (with same
kind of business
with the
partnership expressly
permits him to do so.
(Art. 1789)
CONSEQUENCES IF AN INDUSTRIAL
PARTNER ENGAGES IN ANY BUSINESS:
(Art. 1789)
he can be excluded from the partnership; or
the capitalist partners can avail of the benefit
he obtained from the business, or
the capitalist partners have the right to file
an action for damages against the industrial
partner, in either case.
CONSEQUENCES
IF
THE
CAPITALIST
PARTNER ENGAGES IN A BUSINESS (which
competes with the business of the partnership):
1. he may be required to bring to the common
fund the profits he derived from the other
business; (Art. 1808)
2. he shall personally bear the losses; (Art.
1808)
3. he may be ousted form the partnership,
especially if there was a warning.
Obligations with respect to contribution to
partnership capital:
1. Partners must contribute equal shares to the
capital of the partnership unless there is
stipulation to contrary (Art. 1790)
2. Partners
(capitalist)
must
contribute
additional capital in case of imminent loss to
the business of the partnership and there is
no stipulation otherwise; refusal to do so shall
create an obligation on his part to sell his
interest to the other partners (Art. 1790)
Requisites:
1. There is an imminent loss of the business
the partnership
2. The majority of the capitalist partners are
the opinion that an additional contribution
the common fund would save the business
3. The capitalist partner refuses deliberately
contribute (not due to financial inability)
4. There is no agreement to the contrary
of
of
to
to
Requisites:
1. There exist at least 2 debts, one where the
collecting partner is creditor and the other,
where the partnership is the creditor
2. Both debts are demandable
The partner who collects is authorized to manage
and actually manages the partnership
Obligation of partner who receives share of
partnership credit
Obliged to bring to the partnership capital what
he has received even though he may have given
receipt for his share only (Art. 1793)
Requisites:
1. A partner has received in whole or in part, his
share of the partnership credit
2. The other partners have not collected their
shares
3. The partnership debtor has become insolvent
TO MANAGEMENT
BEARING THE RISK OF LOSS OF THINGS
CONTRIBUTED (Art. 1795)
Specific and determinate things
which are not fungible where
only the use is contributed
Specific and determinate things
the ownership of which is
transferred to the partnership
Fungible things (consumable)
Things contributed to be sold
Things brought and appraised in
the inventory
Specific and determinate things
which are not fungible where
only the use is contributed
Risk is borne
by partner
Risk is borne
by
partnership
Risk is borne
by
partnership
Risk is borne
by
partnership
Risk is borne
by
partnership
Risk is borne
by partner
Partner is
appointed
manager in the
articles of
partnership
Partner is
appointed
manager after
constitution of
partnership
2 or more
persons
entrusted with
management of
partnership
without
specification of
duties/stipulation
that each shall
not act w/o the
other's consent
Power of
managing
partner is
irrevocable
without
just/lawful
cause;
Revocable
only when in
bad faith
Power is
revocable any
time for any
cause
Vote of
partners
representing
controlling
interest
necessary to
revoke
power
Each may
execute all
acts of
administratio
n
In case of
opposition,
decision of
majority
shall prevail;
In case of tie,
decision of
partners
owning
controlling
interest shall
prevail
Absence or
disability of
any one
cannot be
alleged
unless there
is imminent
danger of
grave or
irreparable
injury to
partnership
If refusal of
partner is
manifestly
prejudicial to
interest of
partnership,
court's
intervention
may be
sought
Stipulated that
none of the
managing
partners shall act
w/o the consent
of others
Concurrence
of all
necessary for
the validity of
acts
Manner of
management not
agreed upon
All partners
are agents of
the
partnership
Unanimous
consent
required for
alteration of
immovable
property
Act
w/c
is
not
apparently
for
the
carrying of business in
the usual way
Acts of strict dominion
or ownership:
Assign partnership
property in trust
for creditors
Dispose of goodwill of business
Do an act w/c
would
make
it
impossible to carry
on
ordinary
business
of
partnership
Confess
a
judgment
Enter
into
compromise
concerning
a
partnership claim
or liability
Submit partnership
claim or liability to
arbitration
Renounce claim of
partnership
Acts in contravention of
a
restriction
on
authority
Every partner is an
agent
and
may
execute acts with
binding effect even if
he has no authority
Except:
when
3rd
person
has
knowledge of lack of
authority
Does
not
bind
partnership
unless
authorized by other
partners
restrictions
EFFECTS OF CONVEYANCE OF REAL
PROPERTY BELONGING TO PARTNERSHIP
Title in partnership name,
Conveyance
in
partnership name
Conveyance passes
title
but
partnership
can
recover if:
Conveyance
was
not in the usual
way of business, or
Buyer
had
knowledge of lack
of authority
Conveyance does
not pass title but
only
equitable
interest, unless:
Conveyance
was
not in the usual
way of business, or
2.
Buyer had
knowledge of lack
of authority
Conveyance passes
title
but
partnership
can
recover if:
Conveyance
was
not in the usual
way of business, or
Buyer
had
knowledge of lack
of authority
Conveyance
will
only pass equitable
interest
Conveyance
pass title
will
TO
LIMITED
Liability extends
only to his capital
contributions
No participation in
management
Contribute cash or
property only, not
industry
Not proper party to
proceedings
by/against
partnership
Interest is freely
assignable
Name must appear
in firm name
No prohibition
against engaging in
business
Does not have
same effect; rights
transferred to legal
representative
V. AGENCY
=========================
========
TOPICS UNDER THE SYLLABUS
A. DEFINITION OF AGENCY
B. POWERS (ARTS. 1877-1878
C. EXPRESS V. IMPLIED AGENCY
D. AGENCY BY ESTOPPEL
E. GENERAL VS. SPECIAL AGENCY
F. AGENCY COUCHED IN GENERAL
TERMS
G. AGENCY REQUIRING SPECIAL
POWER OF ATTORNEY
H. AGENCY BY OPERATION OF LAW
I. RIGHTS AND OBLIGATIONS OF
PRINCIPAL
J. MODES OF EXTINGUISHMENT
=========================
========
A. DEFINITION OF AGENCY
CONTRACT OF AGENCY is a contract whereby 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.
Characteristics:
Consensual: perfected by mere consent;
Nominate: it has its own name;
Preparatory: entered into as means to enter into
other contracts
Principal: does not depend on another contract
for its existence and validity;
Unilateral/Bilaterial:
Unilateral: if contract is gratuitous or it creates
obligations for only one party (i.e. the agent)
Bilateral: if contract is for compensation or gives
rise to reciprocal rights and obligations
Nature: Since it is a contract, there must be a
meeting of the minds as to consent, object, and
cause.
Exception to contractual nature:
When the agency is created by operation of
law
Ex: Agency by Estoppel
Basis: Representation
The acts of the agent on behalf of the principal
within the scope of his authority produce the
same legal and binding effects as if they were
personally done by the principal.
Hence, the distinguishing features of agency are
Done
By
principal.
LEASE OF PROPERTY
Agent is controlled by
the principal.
Lease of property
involves property.
SALE
Agent exercises
discretionary powers
Lessor ordinarily
performs only
ministerial functions
Relates to commercial
or business
transactions
Buyer, as a general
rule, cannot return the
object sold
A guardian represents
an incapacitated
person.
Agent is appointed by
the principal and can
be removed by the
latter.
Guardian is appointed
by the court and
stands in loco parentis.
INDEPENDENT
CONTRACTOR
Represents his
principal
Employed by the
employer
A co-partner is not
subject to co-partners
right to control, unless
there is an agreement
to that effect
ACCEPTANCE BY AGENT
Forms of Acceptance by Agent:
Express - when it is oral or written
Implied -when it can be inferred from the
acts of the agent which carry out the
agency, or from his silence or inaction
according to the circumstances
Between persons who are present implied
acceptance if the principal delivers his power of
attorney to the agent and the latter receives it
without any objection
Between persons who are absent
acceptance not deemed implied from the silence
of the agent.
EXCEPTIONS:
When the principal transmits his power of
attorney to the agent who receives it without
any objection
When the principal entrusts to him by letter or
telegram a power of attorney with respect to
the business in which he is habitually
engaged as an agent, and he did not reply to
the letter or telegram
Existence
of actual
agency
Reliance
by 3rd
persons
Nature of
Authority
AGENCY BY
ESTOPPEL
IMPLIED
AGENCY
No agency at all
There is an
actual agency
Can be invoked
only by a 3rd
person who in
good faith relied
on the conduct
of the principal
in holding the
agent out as
being authorized
Such reliance is
not needed,
since the agent
is a real agent
An agent by
estoppel has
none of the
rights of an
agent, except
where the
principals
conduct are such
that the agent
reasonably
believed that the
principal
intended him to
act as an agent
An agent by
implied
appointment
has all the
rights and
liabilities of an
agent, i.e. has
actual authority
to act on behalf
of the principal
BASIS
All acts
S connected with
the business or
employment in
which he is
engaged
N
Extent to
Which
Agent May
Bind the
Principal
Terminatio
n of
Authority
Constructi
on of
Principals
Involves
continuity of
service
May bind his
principal by an
act within the
scope of his
authority
although it may
be contrary to
the latters
special
instructions
Apparent
authority does
not terminate
by the mere
revocation of his
authority
without notice
to the third
party
Merely advisory
in nature
SPECIAL
AGENT
Instruction
s
agents authority
Specific acts in
pursuance of
particular
instructions or
with restrictions
necessarily
implied from the
act to be done
No continuity of
service
Can not bind his
principal in a
manner beyond
or outside the
specific acts
which he is
authorized to
perform
Duty imposed
upon the third
party to inquire
makes
termination of
the relationship
as between the
principal and
agent effective
as to such third
party unless the
agency has been
entrusted for the
purpose of
contracting with
such third party
Strictly
construed as
they limit the
Rests on intention
Rests on prejudice
Substance of
ratification is
confirmation of an
authorized act or
conduct after it has
been done
Substance of estoppel
is the principals
inducement to another
to act to his prejudice
AUTHORITY BY
ESTOPPEL
Where the principal, by
his negligence, permits
his agent to exercise
powers not granted to
him, even though the
principal may have no
notice or knowledge of
the conduct of the
agent
been expressly
of the agents
(1) the non(2) the fault or
Mismanageme
nt of the
business by the
agent
Tort committed
by the agent
Agent in good
faith but
prejudices 3rd
parties
Agent in bad
faith and
prejudices 3rd
persons
Only the
damages
agent
is
liable
for
ACTS OF
THE
AGENT
In behalf of the principal,
within the scope of
authority
EFFECT
Binds principal;
Agent not personally liable
Contract is unenforceable as
against the principal but binds
the agent to the third person
EXCEPTION(S)
Agent liable if he:
Expressly makes himself liable
Exceeds the limits of his authority
without
giving
the
parties
sufficient notice of his powers
Binding on the principal when:
Ratified or
The principal allowed the agent to
act as though he had full
powers
When the transaction involves things
belonging to the principal:
Remedy of the principal - damages
for agents failure to comply
with the agency
Remedies of the third person
If the case falls under the general
rule, he can sue the agent.
But when the contract involves
things belonging to the
principal, he can sue the
principal.
But if it cannot be determined
without litigation who is
liable, he can sue both.
Maintains no relation
with the thing which he
purchases or sells
to Extinguishment by Death
(CKID)
If the agency is coupled with an interest
If the act of the agent was executed without the
knowledge of the death of the principal and
the third person who contracted with the
agent acted in good faith
To avoid damage
If it has been constituted in the common interest
of the principal and of the agent, or in the
interest of a third person who has accepted
the stipulation in his favor
Can the heirs continue the agency?
GENERAL RULE: agency calls for personal
services on the part of the agent; rights &
obligations are not transmissible
EXCEPTIONS:
Agency by operation of law, or a presumed or
tacit agency
Agency is coupled with an interest in the subject
matter of the agency (ex. power of sale in a
mortgage).
Exceptions to Extinguishment Upon Loss or
Destruction of Subject Matter
If it is possible to substitute other material for
that which was destroyed without substantial
detriment to either party or if the destroyed
subject matter was not in fact essential to the
contract;
A partial loss or destruction does not always
result in a complete termination of the agency,
and under such circumstances, while the agency
may be ended in so far as the destroyed property
is concerned, it may continue in existence as to
CHARACTERISTICS
1. Real Contract delivery is essential for
perfection of the loan (BUT a promise to lend,
being consensual, is binding upon the
parties)
2. Unilateral Contract - only the borrower has
the obligation
KINDS
1. COMMODATUM bailor delivers to bailee a
non-consumable thing so that the latter may
use it for a certain time and return the
identical thing
Kinds of commodatum:
a.
Ordinary
commodatum
bailor
may
demand the thing loaned at will; exists in
cases where:
i. There is no stipulation as to the
duration of the contract or use of the
thing loaned
ii. Use of the thing is merely tolerated by
the owner
2.
MUTUUM OR SIMPLE LOAN - lender
delivers to the borrower money or other
consumable thing upon the condition that the
latter will pay the same amount of the same
kind and quality
LOAN
1. Delivery by one
party
and
the
receipt by the other
party of a given
sum of money or
other consumable
thing
upon
an
agreement, express
or implied
2. To repay the same
amount
of
the
same
kind
and
quality, w/ or w/o
interest
CREDIT
Ability of an individual
to borrow money or
things by virtue of the
confidence
or
trust
reposed by a lender
that he will pay what
he may promise w/in a
specified period
COMMODATUM
(Articles 1935-1952)
CHARACTERISTICS AND CERTAIN RULES TO
REMEMBER:
1. Gratuitous: If there is compensation, then
its not commodatum. It may be a lease.
2. Personal:
Death
of
lender/borrower
EXTINGUISHES the contract
3.
4.
5.
6.
7.
d.
c.
c.
c.
c.
currency
is legal
case of
payment
Exceptions:
1. Indemnity for damages the debtor in
delay is liable to pay legal interest
(6%/12%) as indemnity for damages even
in the absence of a stipulation for the
payment of interest. Interest as indemnity
for damages is payable only in case of
default or non-performance of contract.
2. Interest accruing from unpaid interest interest due shall earn interest from the
time it is judicially demanded although the
obligation may be silent upon this point.
Determination of interest payable in kind:
Its value shall be appraised at the current price
of the products or goods at the time and place of
payment. (Art. 1958)
NOTE: In case of an unstipulated interest paid
by mistake, the debtor may recover as in the
case of solutio indebiti or undue payment. If such
was voluntarily paid, there can be no
recovery as in the case of natural obligations.
COMPOUNDING INTEREST (Art. 1959)
May be availed of only when there is a written
stipulation in the contract for the payment of
interest.
General Rule Accrued interest (interest due
and unpaid) shall not earn interest
Exceptions:
When judicially demanded(e.g. when
case is filed to collect)
When there is an express stipulation
made by the parties: that the interest due
and unpaid shall be added to the principal
obligation and the resulting total amount
shall earn interest
USURY
USURY is the contracting for or receiving
something in excess of the amount allowed by
law for the loan or forbearance of money, goods
or chattels.
ELEMENTS OF USURY: (LUIT)
1. Loan or forbearance
2. Understanding between the parties that he
loan shall be paid.
3. Unlawful intent to take more than the legal
rate.
4. Taking or agreeing to take for the use of the
loan of something in excess of what is
allowed by law.
NOTE: Usury now is legally inexistent. In Art.
1306 of NCC, contracting parties may establish
such stipulations, clauses, terms and conditions
as they may deem convenient, provided they are
not contrary to law, morals, good customs, public
order, or public policy. This may be invoked to
annul the excessive stipulated interest.
However, Usury law has NOT been repealed
========================
==============
TOPIC UNDER THE SYLLABUS:
B. Deposit
1. Voluntary Deposit
2. Necessary Deposit
3. Judicial Deposit
========================
==============
DEPOSIT
(Arts. 1962-2009)
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. Safekeeping must be the
principal purpose of the contract.
Characteristics
1. Real - because it is perfected only by the
delivery of the subject matter
BUT an agreement to constitute a deposit
is binding and enforceable, since it is
merely consensual
2. Unilateral - if gratuitous
3. Bilateral - if with compensation
Creation of deposit (Art. 1964)
1. By virtue of a court order or
2. By law
3. Not by the will of the parties
4. Depositary must not be the owner of the
property deposited (Art. 1962)
Kinds of Deposit
1. Judicial - when an attachment or seizure of
property in litigation is ordered
2. Extrajudicial (Art. 1967)
a.
Voluntary - 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
b.
Necessary - made in compliance
with a legal obligation, or on the occasion
of any calamity, or by travelers in hotels
and inns or by travelers with common
carriers. There is lack of free choice in the
depositor.
BASIS
Creati
on
JUDICIAL
Will of the court
Purpos
e
Security
ensure the
a party
property
recover in
favorable
judgment
or
to
right of
to the
or
to
case of
EXTRAJUDICIAL
Will
of
the
contracting
parties
Custody
and
safekeeping
Subjec
t
Matter
Cause
Generally
immovables
Movables only
Always onerous
Return
of
thing
In
whose
behalf
it
is
held
May
be
compensated but
generally
gratuitious
Upon demand of
depositor
Depositor or / 3rd
person designated
DEPOSITARY
CAPACITATED /
DEPOSITOR
INCAPACITATED
Depositary is subject
to ALL the obligations
of a depositary
DEPOSITARY
INCAPACITATED /
DEPOSITOR
CAPACITATED
Depositary does not
incur the obligations of
a depositary
Depositary, however,
is liable to:
a) Return the thing
deposited while still
in his possession;
AND
b) Pay the depositor
the amount by w/c
he
may
have
benefited himself w/
the thing or its price
subject to the right
of any 3rd person
who acquires the
thing in good faith
a) The legal
representative of the
incapacitated, OR
b) The depositor
himself if he should
acquire capacity
BASIS
Demandabi
lity
Benefit
Preference
of credit
IRREGUL
AR
DEPOSIT
Demandable
at will of the
irregular
depositor for
whose benefit
the
deposit
has
been
constituted
Benefit
accrues to the
depositor
Depositor has
preference
over
other
creditors with
respect
to
thing
deposited
MUTUUM
Lender is bound
by
the
provisions of the
contract
and
cannot
seek
restitution until
the
time
of
payment
as
provided in the
contract
has
arisen
Necessity of the
borrower
Enjoy
no
preference
in
the distribution
of the debtors
property
REASONS:
i.
Essential requisite of judicial
relation
which
involves
the
depositors confidence in his good
faith and trustworthiness
ii.
The
presumption
that
the
depositor took into account the
diligence which the depositary is
accustomed with respect to his
own property
b. Return of the thing when required
Even though a specified term or time for
such may have been stipulated in the
contract
The depositary cannot excuse himself from
liability, in the event of loss, by claiming that he
exercised the same amount of care toward the
thing deposited as he would towards his own if
such care is less than that required by the
circumstances
2. Obligation not to Transfer deposit (Art.
1973)
General Rule: The depositary is not allowed to
deposit the thing with a third person
REASON: A deposit is founded on trust and
confidence and it can be supposed that the
depositor, in choosing the depositary, has taken
into consideration the latters qualification
Exception: The depositary is authorized by
express stipulation
LIABILITIES: Depositary is liable for loss of the
thing deposited when:
a. He transfers the deposit with a third
person without authority although there
is no negligence on his part and the third
person;
b. He deposits the thing with a third person
who is manifestly careless or unfit
although authorized, even in the absence
of negligence; or
c. The thing is lost through the negligence
of his employees whether the latter are
manifestly careless or not.
a. If the thing
consumable:
deposited
is
non-
through
fortuitous
12.
c.
18.
IRREGULAR
DEPOSIT
May be demanded at
will by the irregular
depositor for whose
benefit the deposit
has been constituted
Only benefit is that
which accrues to the
depositor
Depositor
has
preference over other
creditors
MUTUUM
Lender is bound by the
provision
of
the
contract and cannot
seek restitution until
the time for payment,
as provided in the
contract, has arisen
If with interest, benefit
if both parties
No preference
of
aa
not
extinguished by the death of either party
Extinguishment of Deposit
a. Upon the loss or deterioration of the thing
deposited;
b. Upon the death of the depositary, ONLY in
gratuitous deposits;
c. Other provisions in the Civil Code
(novation, merger, etc.)
NECESSARY DEPOSIT
A deposit is necessary when: (LCCT)
1. It is made in compliance with a legal
obligation
2.
3.
4.
Extent of liability:
a. Liability in hotel rooms which come
under the term baggage or articles
such as clothing as are ordinarily used
by travelers
b. Include those lost or damages in hotel
annexes such as vehicles in the
hotels garage.
In compliance with a
legal obligation (governed by the law
establishing it, and in case of deficiency,
the rules on voluntary deposit e.g. Arts.
538, 586 and 2104)
b.
or
Purpose
Subject
Matter
Remunerati
on
In
whose
behalf it is
held
JUDICIAL
DEPOSIT
By will of the
courts
Security;
Secure the right
of a party to
recover in case of
favorable
judgment.
Either movable or
immovable
property
but
generally,
immovable
Always
remunerated
(onerous)
In behalf of the
person who, by
the
judgment,
has a right
EXTRAJUDIC
IAL DEPOSIT
By will of the
parties.
Hence, there
is a contract
Custody;
Safekeeping
of the thing
Only movable
property
Generally
gratuitous,
but may be
compensated
In behalf of
the depositor
or
third
person
designated
========================
==============
TOPIC UNDER THE SYLLABUS:
C. Guaranty and Suretyship
1. Nature and extent of guaranty
2. Effects of guaranty
3. Extinguishment of guaranty
4. Legal and judicial bonds
========================
==============
GUARANTY AND SURETYSHIP
(Arts. 2047-2084)
GUARANTY By guaranty, a person called the
guarantor, binds himself to the creditor, to fulfill
the obligation of the principal debtor in case the
latter should fail to do so. It is a contract between
the guarantor and the creditor.
a.
T
Rights of third persons who pay:
1. Payment without the knowledge or
against the will of the debtor:
a. Guarantor can recover only insofar as the
payment has been beneficial to the
debtor (Art. 1236)
b. Guarantor cannot compel the creditor to
subrogate him in his rights (Art. 1237)
2. Payment with knowledge or consent of
the debtor: Subrogated to all the rights
which the creditor had against the debtor
(Art. 2067)
(upon
b.
Article 2057:
1. Requires conviction in the first instance of a
crime involving dishonesty to have the right
to demand another.
2. Judicial declaration of insolvency is not
necessary in order for the creditor to have a
right to demand another guarantor.
EXCEPTIONS
TO
THE
EXCUSSION (Art. 2059)
Selection of Guarantor:
1. Specified
person
stipulated
as
guarantor: Substitution of guarantor may
not be demanded
REASON: The selection of the guarantor is:
a. A term of the agreement;
b. As a party, the creditor is, therefore,
bound thereby.
2. Guarantor selected by the principal
debtor: Debtor answers for the integrity,
capacity, and solvency of the guarantor.
3. Guarantor personally designated by the
creditor: Responsibility of the selection
should fall upon the creditor because he
considered the guarantor to have the
qualifications for the purpose.
RIGHT OF GUARANTOR TO BENEFIT OF
EXCUSSION OR EXHAUSTION (Art. 2058)
1. Guarantor only secondarily liable
guarantor binds himself only in case the
principal debtor should fail to do so. If the
principal debtor fulfills the obligation
guaranteed, the guarantor is discharged from
any responsibility.
2. All legal remedies against the debtor to
be first exhausted to warrant recourse
against the guarantor for payment, it may
not be sufficient that the debtor appears
insolvent. Such insolvency may be simulated.
BENEFIT
OF
voluntary
appearance does not constitute a
renunciation of his right to excussion.
b. Guaranty does not appear
i. He cannot set up the defenses which,
by appearing are allowed to him by
law; and
Excussion
among
Several
Right
to
Indemnity
or
1.
RIGHT
TO
SUBROGATION
SUBROGATION
transfers
to
the
person
subrogated, the credit with all the rights thereto
appertaining either against the debtor or against
third persons, be they guarantors or possessors
of mortgages,
subject
to
stipulation
in
conventional subrogation.
1. Accrual, basis, and nature of right right
of subrogation is necessary to enable the
guarantor to enforce the indemnity given in
Art. 2066
a. Arises by operation of law upon payment
by the guarantor
b. It is not a contractual right
c. The guarantor is subrogated, by virtue of
the payment, to the right of the creditor,
not those of the debtor.
2. When right not available since
subrogation is the means of effectuating the
right of the guarantor to be reimbursed, it
cannot therefore be invoked in those cases
where the guarantor has no right to be
reimbursed.
EFFECT OF PAYMENT BY GUARANTOR
WITHOUT NOTICE TO DEBTOR (Art. 2068)
When the guarantor pays the creditor, but
debtor has already paid the latter, then
debtor can set up against the guarantor
defense of previous extinguishments of
obligation by payment.
the
the
the
the
AFTER PAYMENT)
Provides
for
the
enforcement of the
rights of the guarantor
against
the
debtor
after he has paid the
debt gives a right of
action after payment
Substantive right
Gives a right of action,
which,
without
the
provisions of the other
might be worthless
DEBTOR EVEN
BEFORE PAYMENT)
Provides
for
the
protection before he
has paid but after he
has become liable
gives
a
protective
remedy before payment
Preliminary remedy
Remedy given seeks to
obtain
from
the
guarantor release from
the guaranty or to
demand a security that
shall protect him from
any proceedings by the
creditor and from the
danger of insolvency of
the debtor.
Recovery of Surety against Indemnitor even
before Payment
1. Indemnity agreement for the benefit of
surety not for the benefit of the creditor
2. Indemnity agreement may be against
actual loss as well as liability such
agreement is enforceable and not violative of
any public policy
a. Indemnity against loss indemnitor
will not be liable until the person to be
indemnified makes payment or sustains
loss
b. Indemnity
against
liability
BETWEEN CO-GUARANTORS
RIGHT TO CONTRIBUTION OF GUARANTOR
WHO PAYS
(Art. 2073)
Presumption of joint liability of several
guarantors when there are:
1. Two or more guarantors
2. Same debtor
3. Same debt
Effect: Each is bound
proportionate share.
to
pay
only
his
OF
the
WITHOUT
is
discharged
from
his
Where
obligation
payable
in
installments: where a guarantor is liable for
different payments:
General Rule: An extension of time to one
or more will not affect the liability of the
surety for the others.
Exception: When the unpaid balance has
become automatically due by virtue of an
acceleration clause for failure to pay an
installment.
2.
SURETYSHIP
SURETYSHIP is a relation which exists where
one person (principal) has undertaken an
obligation and another person (surety) is also
under a direct and primary obligation or other
duty to the obligee, who is entitled to but one
performance, and as between the two who are
bound, the second, rather than the first should
perform.
If a person binds himself solidarily with the
principal debtor, the contract is called
suretyship and the guarantor is called a
surety.
NATURE OF SURETYS UNDERTAKING
1. Liability is contractual and accessory but
direct:
2. Liability is limited by terms of contract
3. Liability arises only if principal debtor is
held liable
a. In the absence of collusion, the surety is
bound by a judgment against the
principal event though he was not a party
to the proceedings;
b. The creditor may sue, separately or
together, the principal debtor and the
surety;
c. A demand or notice of default is not
required to fix the suretys liability
EXCEPTION: Where required by the
provisions of the contract of suretyship
d. A surety bond is void where there is no
principal debtor because such an
undertaking
presupposes
that
the
obligation is to be enforceable against
someone else besides the surety, and the
latter can always claim that it was never
his intention to be the sole person
obligated thereby.
NOTE: Surety is not entitled to
exhaustion
4. Undertaking is to creditor, not to
debtor: The suretys undertaking is that the
principal shall fulfill his obligation and that
the surety shall be relieved of liability when
the obligation secured is performed.
EXCEPTION: Unless otherwise expressly
provided.
NOTE: Surety is not entitled to notice
principals default
of
========================
==============
TOPIC UNDER THE SYLLABUS:
D. Pledge
1. Definition
2. Kinds
3. Essential requirements
4. Obligation of pledge
5. Rights of pledgor
6. Perfection (Arts. 2093, 2096)
7. Foreclosure (Arts. 2112, 2115)
8. Pledge by operation of law (Art.
2121-2122)
9. Distinguished from chattel
mortgage (Arts. 2140, 1484)
========================
==============
1.
2.
3.
4.
5.
6.
Important Points
1. Future property cannot be pledged or
mortgaged
2. Pledge/mortgage executed by one who is not
the owner of the property pledged or
3.
4.
5.
6.
7.
8.
9.
PLEDGE
Constituted
on
movables
Property is delivered
to the pledgee, or by
common consent to a
3rd person
Not valid against 3rd
persons
unless
a
description of the
thing pledged and
the
date
of
the
pledge appear in a
public instrument
MORTGAGE
Constituted on
immovables
Delivery not necessary
8. Pledgee:
a. Take care of the thing with diligence of a
good father of a family.
b. Cannot deposit the thing pledged with a
third person, unless there is a stipulation
authorizing him to do so
c.
4.
========================
==============
TOPIC UNDER THE SYLLABUS:
E. Real Mortgage
1. Definition and characteristics
2. Essential requisites
3. Foreclosure
========================
==============
MORTGAGE
REAL MORTGAGE (Arts. 2124-2131) is a
contract whereby the debtor secures to the
creditor the fulfillment of a principal obligation,
specially subjecting to such security immovable
property or real rights over immovable property
in case the principal obligation is not complied
with at the time stipulated.
OBJECTS OF REAL MORTGAGE:
1. Immovables
2. Alienable real rights in accordance with the
laws, imposed upon immovables.
General Rule: Future property cannot be
object of mortgage
Exception:
(AFTER-ACQUIRED
PROPERTIES) A stipulation subjecting to the
mortgage lien, improvements which the
mortgagor may subsequently acquire, install,
or use in connection with the real property
already
mortgaged
belonging
to
the
mortgagor is valid Peoples Bank and
Trust Co. v. Dahican Lumber Co., [20
SCRA 84 (1967)]
Example: X owns a factory. In that factory, he
installed a machine and subsequently
mortgaged it. The parties may validly
stipulate that if the original machine is
replaced, the replacement shall be subject to
the mortgage. The reason for this is that
after-acquired properties are understood to
be replacements, as the original machine
may be subject to wear and tear.
Important Points
1. As a general rule, the mortgagor retains
possession of the property. He may deliver
said property to the mortgagee without
altering the nature of the contract of
mortgage.
2. It is not an essential requisite that the
principal of the mortgage credit bears
interest, or that the interest as compensation
for the use of the principal and the enjoyment
of its fruits be in the form of a certain percent
thereof.
Kinds of Mortgage:
1. Voluntary
2. Legal
3.
Eq
uit
ab
le one which, although it lacks the proper
formalities of a mortgage shows the intention of
the parties to make the property as a security for
a debt (governed by Arts. 1365, 1450, 1454,
1602, 1603, 1604 and 1607)
ESSENTIAL REQUISITES OF MORTGAGE:
(FADVAP)
1. Constituted to secure the fulfillment of a
principal obligation
2. Mortgagor be the absolute owner of the thing
pledged or mortgaged
3. Mortgagor has free disposal of the property,
and in the absence thereof, that he be legally
authorized for the purpose
4. Cannot exist without a valid obligation
5. When the principal obligation becomes due,
the thing in which the mortgage consists may
be alienated for the payment to the creditor.
6. Appears in a public document duly recorded
in the Registry of Property to be validly
constituted
If the instrument is not recorded, the
mortgage
is
nevertheless
binding
between the parties.
LEGAL MORTGAGE: the persons in whose favor
the law establishes a mortgage have no other
right than to demand the execution and the
recording of the document in which the
mortgage is formalized.
1.
2.
3.
4.
5.
INCIDENTS OF REGISTRATION OF
MORTGAGE
Mortgagee
entitled
to
registration
of
mortgage as a matter of right
Proceedings for registration do not determine
validity of mortgage or its effect
Registration is without prejudice to better
right of third parties
Mortgage deed once duly registered forms
part of the records for the registration of the
property mortgaged
Mortgage by surviving spouse of his/her
undivided share of conjugal property can be
registered
amount
of
the
ALIENATION
OR
ASSIGNMENT
OF
MORTGAGE CREDIT
The mortgage credit is a real right which may be
alienated by the mortgagee without need to
obtain the consent of the debtor. Alienation of
the mortgage credit is valid even if it is not
registered. Registration is necessary only to
affect third persons.
Laws
1.
2.
3.
4.
Governing Mortgage
New Civil Code
P.D. 1952
Revised Administrative Code
R.A. 4882, as regards aliens becoming
mortgages
full
3.
1.
Fil
ing of application before the Executive Judge
through the Clerk of Court
2. Clerk of Court will examine whether the
requirements of the law have been complied
with, that is, whether the notice of sale has
been posted for not less than 20 days in at
least 3 public places of the municipality or
city where the property is situated, and if the
same is worth more than P400.00, that such
notice has been published once a week for at
least 3 consecutive weeks in a newspaper of
general circulation in the city or municipality
3. The certificate of sale must be approved by
the Executive Judge
4. In extrajudicial foreclosure of real mortgages
in
different
locations
covering
one
indebtedness,
only
one
filing
fee
corresponding to such debt shall be collected
5. The Clerk of Court shall issue certificate of
payment
indicating
the
amount
of
indebtedness, the filing fees collected, the
mortgages sought to be foreclosed, the
description of the real estates and their
respective locations
6. The notice of sale shall be published in a
newspaper of general circulation
7. The application shall be raffled among all
sheriffs
8. After the redemption period has expired, the
Clerk of Court shall archive the records
9. No auction sale shall be held unless there are
at least 2 participating bidders, otherwise the
sale shall be postponed to another date. If on
the new date there shall not be at least 2
bidders, the sale shall then proceed. The
names of the bidders shall be reported by the
Sheriff or the Notary Public who conducted
the sale to the Clerk of Court before the
issuance of the certificate of sale
Right of mortgagee to recover deficiency
1. Mortgagee is entitled to recover deficiency
2. If the deficiency is embodied in a judgment, it
is referred to as deficiency judgment
3. Action for recovery of deficiency may be filed
even during redemption period
4. Action to recover prescribes after 10 years
from the time the right of action accrues
1.
E
quity of redemption: right of the
mortgagor to redeem the mortgaged
property after his default in the performance
of the conditions of the mortgage but before
confirmation of the sale.
a.
Applies to judicial foreclosure of
real mortgage and chattel mortgage
foreclosure
b.
A second mortgagee acquires only
the equity of redemption vested in the
mortgagor, and his rights are strictly
subordinate to the superior lien of the
first mortgagee.
NOTE:
Redemption
of
the
banking
institutions is allowed within 1 year from
confirmation of sale
2. Right of redemption: right of the
mortgagor to redeem the property within a
certain period after it was sold for the
satisfaction of the debt
a.
Applies
only
to
extrajudicial
foreclosure of real mortgage
NOTE: The right of redemption, as long as within
the period prescribed, may be exercised
irrespective of whether or not the mortgagee has
subsequently conveyed the property to some
other party Sta. Ignacia Rural Bank, Inc. v.
CA, 230 SCRA 513 (1994)
A sale by the mortgagor to a third party of the
mortgaged property during the period of
redemption transfers only the right to redeem
the property and the right to possess, use, and
enjoy the same during the period. The judgment
debtor remains in possession of the property
foreclosed and sold during the period of
redemption, but he cannot make a conveyance
of the ownership of the property, since it belongs
to the purchaser at the foreclosure sale Dizon v.
Gaborro, 83 SCRA 688 (1978)
PERIOD OF REDEMPTION
Extra-judicial (Act No. 3135)
a. Natural person 1 year from registration
of the certificate of sale with Registry of
Deeds
b. Juridical person same rule as natural
person
c. Juridical person (mortgagee is bank) 3
months after foreclosure or before
registration of certificate of foreclosure
whichever is earlier (Sec. 117 of General
Banking Law)
2.
H
Judicial before confirmation of the sale by the
court
Periods of
redemption
Mortgage:
Individual
debtors/mortga
gors
Juridical persons
as
debtors/mortga
gors
Judicial
Foreclosure
BANKS
1 year
from
registrati
on of
sale
1 year
from
registrati
on of
sale
NONBANK
S
Extrajudicial
Foreclosure
BANKS
NONBANKS
1 year
from
registrati
on of
sale
Until
registrati
on of
certificat
e of sale
or 3
months
from sale
whichev
er is
earlier
1 year
from
registrati
on of
sale
1 year
from
registrati
on of
sale
========================
==============
TOPIC UNDER THE SYLLABUS:
F. Antichresis
1. Definition and Characteristics
2.
Obligations
of
Antichretic
Creditor
========================
==============
ANTICHRESIS
(Arts. 2132-2139)
========================
==============
TOPIC UNDER THE SYLLABUS:
G. Chattel Mortgage
1. Definition and characteristics
2. Registration
========================
==============
CHATTEL MORTGAGE
CHATTEL MORTGAGE (Arts. 2140-2141) is a
contract by virtue of which a personal property is
recorded in the Chattel Mortgage Register as
security for the performance of an obligation.
NOTE: If the movable, instead of being recorded
is delivered to the creditor, it is a pledge and not
a chattel mortgage.
CHATTEL MORTGAGE
Involves
movable
property
Delivery
of
the
personal property is
NOT necessary
Registration
is
necessary for validity
Procedure: Sec 14 of
Act
no
1508,
as
amended
If
the
property
is
foreclosed, the excess
over the amount due
goes to the debtor
Creditor is entitled to
recover deficiency from
the debtor EXCEPT if it
is a security for the
purchase of personal
property
in
installments
PLEDGE
Involves
movable
property
Delivery
of
the
personal property is
necessary
Registration is NOT
necessary for validity
Procedure: Art 2112 of
Civil Code
If the property is sold,
the
debtor
is
not
entitled to the to the
excess UNLESS it is
otherwise agreed or in
case of legal pledge
Creditor is not entitled
to recover deficiency
notwithstanding
any
stipulation
to
the
contrary
RIGHT OF REDEMPTION
When the condition of a chattel mortgage is
broken, the ff may redeem:
a. Mortgagor;
b. Person holding a subsequent mortgage;
c. Subsequent attaching creditor.
costs and
breach of
3.
=========================
=============
TOPIC UNDER THE SYLLABUS:
H. Concurrence and Preference of
Credits
1. Solutio Indebiti
2. Negotiorum Gestio
=========================
=============
Solutio Indebiti and Negotiorium Gestio
Solutio Indebiti (Art 2154)
=========================
=============
TOPIC UNDER THE SYLLABUS:
I. Concurrence and Preference of
Credits
1. Meaning of Concurrence and
Preference
2. Preferred Credits on Specific
Movables
3. Exempt Property
4. Classification of Credits
=========================
=============
CONCURRENCE AND PREFERENCE OF
CREDITS
(Arts. 2236-2251)
CONCURRENCE OF CREDIT implies possession
by two or more creditors of equal rights or
privileges over the same property or all of the
property of a debtor.
PREFERENCE OF CREDIT is the right held by a
creditor to be preferred in the payment of his
claim above others out of the debtors assets.
Preference creates no interest or lien on
the property, but merely a preference to
the application of the proceeds.
The right of preference can be made
effective only by being asserted and
maintained. Otherwise, it is lost.
General Provisions:
1. The debtor is liable with all his property,
present and future, for the fulfillment of
5.
6.
=========================
=============
TOPIC UNDER THE SYLLABUS:
J. Insolvency Law
1. Definition of insolvency
2. Suspension of payments
3. Voluntary insolvency
4. Involuntary insolvency
=========================
=============
INSOLVENCY LAW FRIA
FRIA DEFINITION OF INSOLVENCY
Financial condition of a debtor that is generally
unable to pay its or his liabilities as they gall due
in the ordinary course of business or has
liabilities that are greater than its or his assets
For FRIA to be applicable, there must be
insolvency proceedings in the courts designated
by the Supreme Court to hear and resolve cases
brought under this act
PURPOSES OF FRIA
1. To effect equitable distribution of the
insolvents property among its or his
creditors
2. To benefit the debtor in discharging him
from his liabilities and enabling him to
start afresh with the property set apart to
him as exempt
Pre-negotiated rehabilitation
1. COURT-SUPERVISED REHABILITATION
Owner, partnership or corporation may
initiate proceedings for rehabilitation,
which the proper court oversees and
deliver a final judgment regarding the
rehabilitation plan
REHABILITATION
o
REHABILITATION PLAN
o
REHABILITATION RECEIVER
o
KINDS
Voluntary proceedings
NATURE OF PROCEEDINGS
Insolvency proceedings in FRIA are proceedings
in rem
HOW JURISDICTION IS ACQUIRED
Involuntary proceedings
o
TYPES OF PROCEEDINGS
Initiation proceedings
o
8. Rehabilitation plan
9. Names of at least 3 nominees for
rehabilitation receiver position
Commencement order:
4. Rehabilitation plan
Upon
confirmation
of
rehabilitation plan, rehabilitation
receiver shall provide a final
report and accounting to the
court. Unless the plan requires or
describes
the
role
of
the
rehabilitation
receiver
after
approval of the plan, curt shall
discharge rehabilitation receiver
of duties.
o Termination Proceedings
Failure of rehabilitation:
Dismissal of petition by court
Debtor
fails
to
submit
a
rehabilitation plan
Under
rehabilitation
plan
submitted by debtor, there is no
substantial
likelihood
for
rehabilitation
Though amended and approved,
debtor fails to implement the
rehabilitation plan, failure to
realize objectives
Commission of fraud in securing
the approval for the plan
Analogous circumstances as may
be defined by rules of procedure
Court action upon break of or failure
of rehabilitation plan (upon motion
of an affected party)
Issue an order directing breach be
cured within specified period,
failing which, proceeding may be
converted to liquidation
Issue
and
order
converting
proceedings to liquidation
Allow
debtor
to
submit
amendments to plan subject to
approval
under
same
requirements for approval under
provisions
Issue any other order to remedy
breach consistent with present
regulation
2. PRE-NEGOTIATED REHABILITATION
Parties to file a petition for
negotiated rehabilitation plan
Insolvent debtor by itself; or
Jointly with any of its creditors
pre-
Standstill Period
It is a period that may be agreed upon by the
parties pending negotiation/finalization of the
out-of-court agreement or Rehab Plan (similar to
a stay order)
Voluntary Liquidation:
.
Procedure:
. Filing of Petition (Sec 90)
. If court finds petition sufficient in
form and substance, it shall issue
the Liquidation Order (Sec 104)
. Publication of the petition or
motion in a newspaper of general
circulation once a week for 2
consecutive weeks [Sec 112 (d)]
. Hearing
for
election
and
appointment of liquidator [Sec
112 (j)]
. Direct payments of any claims and
conveyance of any property due
the debtor to the liquidator [Sec
112 (e)]
. Liquidation of the debtors assets
and payment of his debts by the
Liquidator (Sec 119)
. Discharge of Liquidator (Sec 122)
. Appeal if proper
Involuntary Liquidation:
.
Procedure:
. Filing of the petition of 3 or
more creditors (Sec 91)
. Issuance of order:
1. Directing publication of
petition or motion in a
newspaper of general
circulation
once
a
week for 2 consecutive
weeks
2. Directing the debtor
and all creditors to file
their comment on the
petition
. Filing of comments
. Consideration of comments
filed by the court
. Issuance of the liquidation
order
. Publication of the petition or
motion in a newspaper of
general circulation once a
week for 2 consecutive weeks
[Sec 112 (d)]
. Hearing for election and
appointment of the liquidator
[Sec 112 (j)]
. Direct payments of any claims
and
conveyance
of
any
property due the debtor to the
liquidator [Sec 112 (e)]
. Liquidation of the debtors
assets and payment his debts
by the Liquidator (Sec 119)
. Discharge of Liquidator (Sec
122)
. Appeal if proper
I.
Procedure:
i. Filing of petition by debtor
(Sec 94)
ii. Issuance by the court of an
order calling a meeting of
creditor (Sec 95)
2. Fraudulent connivance
between one or more
creditors
and
the
individual debtor ot
vote in favor of the
proposed agreement;
3. Fraudulent connivance
of
claims
for
the
purpose of obtaining a
majority.
vi. Effect of failure or individual
debtor to perform agreement:
If the debtor fails, wholly or in
part,
to
perform
the
agreement decided upon the
meeting of the creditors, all
rights which the creditors had
against the debtor before the
agreement shall revest in
them (Sec 102).
Distinctions between Suspension of
Payments and Insolvency:
Purpose
Property
Amount of
Indebtedness
SUSPENSION
OF
PAYMENTS
Suspend or
delay the
payment of
debts
Debtor has
sufficient
property
Amount of
indebtedness
is not affected
INSOVENCY
Discharge the
debtor from
the payment
of debts
Debtor does
not have
sufficient
property
Creditors
receive less
than their
credits, and in
case there are
preferences,
some
creditors may
not receive
any amount at
all
I.
Voluntary Liquidation
a. A verified petition may be filed by an
insolvent
debtor
(owing
debts
exceeding the amount of P500,000) in
the court of the province or city in
Involuntary Liquidation
a. Purpose: It is not a mere personal
action against the insolvent for the
collection of debts, but its purpose is
to impound all of his non-exempt
property, to distribute it equitably
among his creditors, and release him
from further liability.
b. Any creditor or group of creditors,
with a claim of or with claims
aggregating at least P500,000, may
file a verified petition in the court of
the province or city in which the
individual debtor resides.
i. Petitioning creditor must post
a bond.
ii. Petition must allege at least
one act of insolvency.
1. Any
debtor
who
commits an act of
insolvency
may
adjudged
insolvent.
The
date
of
adjudication
of
insolvency retroacts to
the date of the filing of
the
petition
for
insolvency.
c. Acts of Insolvency:
i. That such person is about to
depart or has departed from
the
Republic
of
the
Philippines, with intent to
defraud his creditors;
ii. That being absent from the
Republic of the Philippines,
with intent to defraud his
creditors, he remains absent;
iii. That he conceals himself to
avoid the service of legal
process for the purpose of
hindering or delaying the
liquidation or of defrauding his
creditors;
iv. That he conceals, or is
removing, any of his property
to avoid its being attached or
taken on legal process;
v. That he has suffered his
property to remain under
attachment or legal process
for three (3) days for the
purpose
of
hindering
or
delaying the liquidation or of
defrauding his creditors;
vi. That he has confessed or
offered to allow judgment in
favor of any creditor or
claimant for the purpose of
hindering or delaying the
liquidation or of defrauding
any creditors or claimant;
vii. That he has willfully suffered
judgment to be taken against
him by default for the purpose
of hindering or delaying the
liquidation or of defrauding his
creditors;
viii. That he has suffered or
procured his property to be
taken on legal process with
intent to give a preference to
one or more of his creditors
and thereby hinder or delay
the liquidation or defraud any
one of his creditors;
ix. That he has made any
assignment,
gift,
sale,
conveyance or transfer of his
estate, property, rights or
credits with intent to hinder or
delay
the
liquidation
or
defraud his creditors;
One
Filed by:
Insolvent
debtor
Acts of
insolvency
Must not be
guilty
Amounts of
indebtedness
Bond
Order of
Adjudication
Must exceed
P500,000
Not Required
May be
granted ex
parte
Province or
city in which
debtor has
resided for 6
months prior
to petition
Upon filing of
the voluntary
petition
Length of
residence (for
RTC)
When does
the court
order the
adjudication?
INVOLUNTAR
Y
Any creditor or
group of
creditors
3 or more
creditors with
qualifications
set by laws
Must have
committed one
or more
Not less than
P500,000
Required
Granted only
after hearing
Immaterial
LIQUIDATION
REHABILITATION
COURT SUPERVISED
Voluntary
Proceeding
s
How
Made
Purpose
- verified
petition
Establish
insolvency
and the
viability of
rehabilitatio
n in court
Involuntar
y
Proceeding
s
- verified
petition
Establish
insolvency
and the
viability of
rehabilitatio
n in court
PRENEGOTIATED
-verified
petition
the approval of
the
Rehabilitation
plan in court
INFORMAL
RESTRUCTU
RING
AGREEMENT
Done without
court
intervention
provided that
it meets the
minimum
requirement
of FRIA
To negotiate
terms of the
rehabilitation
plan without
court
intervention
INSOLVENT JURIDICAL
DEBTORS
Voluntary
Involunta
ry
1) verified
petition for
liquidation in
court
2) verified
motion to
convert
pending
rehabilitation
proceeding
into a
liquidation
proceeding
1) verified
petition
for
liquidation
in court
2) verified
motion to
convert
pending
rehabilitati
on
proceedin
g into a
liquidation
proceedin
g
To establish
the
insolvency of
debtor for
purposes of
liquidation
To
establish
the
insolvency
of debtor
for
purposes
of
liquidation
INDIVIDUAL INSOLVENT
DEBTORS
Voluntar
y
Liquidati
on
Verified
petition
court of
the
city/provin
ce where
debtor has
resided 6
months
prior to
filing
*filing of
such
petition=a
ct of
insolvency
to apply
for
discharge
of debts
and
liabilities
Involunta
ry
Liquidati
on
Verified
petition in
the court
of the
province
or city in
which the
individual
debtor
resides
to
impound
all of
debtors
nonexempt
property,
to
distribute
it
equitably
among his
creditors
and to
release
Suspensi
on of
Payments
Verified
petition
before
city/provin
ce where
debtor has
resided 6
months
prior to
filing
to be
declared in
a state of
suspension
of
payment
him
from
further
liability
Parties
Filed by
Insolvent
Debtor
-sole
proprietorsh
ip: owner
partnership:
partners
corporation:
majority
vote of BoD
or trustees
+ 2/3 vote
of SH
representing
outstanding
capital stock
or 2/3 vote
of members
Filed by
Creditor or
group of
creditors
with
aggregate
claim of at
least 1M or
at least 24%
of
subscribed
capital stock
or partners
contribution
s, whichever
is higher
Filed by
Insolvent
debtor by
itself or jointly
with other
creditors
Rehabilitation
Plan must be
approved by:
1) debtor
2) creditors
representing
at least 67%
of the
SECURED
obligations of
the debtor
3) creditors
representing
at least 75%
of the
UNSECURED
obligations of
the debtor
4) creditors
holding at
least 85% of
the TOTAL
LIABILITIES,
SECURED and
UNSECURED,
of the debtor
Filed by the
Insolvent
debtor
3 or more
creditors
with the
aggregate
claims of
at least
1M or at
least 25%
of the
subscribed
capital
stock or
partners
contributio
ns of the
debtor,
whichever
is higher
Individual
debtor
Creditor or
group of
creditors
with a
claim or
aggregate
claim of at
least 500K
Individual
debtor
Grounds
Debtors
insolvency
or inability
to pay its
obligations
as they
become due
1) no
genuine
issue of fact
or law on
the claim/s
of the
petitioner/s
and that the
due and
demandable
payments
have not
been made
for at least
Pre-negotiated
Rehabilitation
plan which
must approved
by creditors
holding at
least 2/3 of
total liabilities
including:
a) secured
creditors
holding more
than 50% of
the total
Consent of the
parties
involved to
the informal
re-structuring
agreement
Rehabilitatio
n is no longer
possible
1) no
genuine
issue of
fact or law
on the
claim/s of
the
petitioner/
s, and that
the due
and
demandab
le
payments
Debtor
doesnt
have
sufficient
properties
to cover
his
liabilities
and the
debts
which he
owes
exceeds
500k
Acts of
Insolvency
which
tends to
delay the
liquidation
or to
defraud
any
creditors
like:
1)debtor
has
departed
Debtor has
sufficient
property to
cover all
his debts
BUT
foresees
the
impossibili
ty of
meeting
debts
when they
become
from the
60 days or
that the
debtor has
generally
failed to
meet its
liabilities as
they fall due
Minimu
m
require
ments of
the
petition
1) schedule
of debtors
liabilities
with list of
creditors
2)an
inventory of
all its assets
3)Rehabilita
tion Plan
4) names of
at least 3
nominees to
the position
of receiver
2)creditor,
other than
the
petitioner/s
has initiated
foreclosure
proceedings
against the
debtor that
will prevent
the debtor
from paying
its debts as
they
become due
or will
render it
insolvent
1)
circumstanc
es sufficient
to support
petition
2)specific
relief sought
3)Rehabilita
tion Plan
4) names of
at least 3
nominees to
the position
of receiver
secured claims
of the debtor
and
b) unsecured
creditors
holding more
than 50% of
the total
unsecured
claims of the
debtor
thereon
have not
been
made for
at least
180 days
or the
debtor has
failed
generally
to meet its
liabilities
as they
fall due
Philippines
, with
intent to
defraud
his
creditors;
2) he
conceals
himself to
avoid the
service of
legal
process
for the
purpose of
hindering
or
delaying
the
liquidation
2) no
substantia
l likelihood
that the
debtor
may be
rehabilitat
ed
1) schedule of
debtors
liabilities with
list of creditors
2)an inventory
of all its assets
3) prenegotiated
Rehabilitation
plan and
names of at
least 3
nominees to
the position of
receiver
N/A
1) schedule
of debtors
liabilities with
list of
creditors
2)an
inventory of
all its assets
3) names of
at least 3
nominees to
the position
of liquidator
none
due
1)schedul
e of debts
and
liabilities
2)
inventory
of assets
Posting of
bond in
the
amount
determine
d by the
court
1)schedule
of debts
and
liabilities
2)inventor
y of assets
3)propose
d
agreement
with
creditors
Court
Action
(if
sufficien
t in form
and
substanc
e)
Publicati
on
COMMENCEMENT ORDER
-shall appoint a
rehabilitation receiver
-summarize requirements
and deadlines for creditors
to establish their claim
-include a STAY or
SUSPENSION ORDER
none
4) summary of
disputed
claims against
debtor and
report on the
provisioning of
funds
Court order
-shall appoint a
rehabilitation
receiver, if
provided in the
plan
- service of
petition to
each creditor
who is not a
petitioner
holding at least
10% of total
liabilities of
debtor
-
Once a week
for 2
consecutive
weeks in a
newspaper of
general
circulation;
with first
publication
made within 7
days from
issuance of
Order
Insolvent
debtor or
creditor may
seek court
assistance for
the execution
or
implementatio
n of the
agreed
Rehabilitation
Plan
Liquidation
Order
Notice of
Rehabilitation
plan:
published
once a week
for 3
consecutive
weeks in a
newspaper of
general
circulation
Petition or
motion: Once
a week for 2
consecutive
weeks in a
newspaper of
general
circulation
Court
Order:
1)publicati
on
2)directing
debtors
and
creditors
to file
comment
Liquidatio
n order
1) show
cause
order
2)
liquidation
order
none
none
Liquidatio
n order
Petition or
motion:
Once a
week for 2
consecutiv
e weeks in
a
newspape
r of
general
circulation
Court
Order:
1) calling
of
creditors
meeting
2)publicati
on of said
order and
service of
such order
to all
creditors
3)suspend
any
pending
execution
against
debtor
upon
motion
Order:
Once a
week for 2
consecutiv
e weeks in
a
newspaper
of general
circulation;
with first
publication
made
within 7
days from
issuance of
Order
Hearing
Effect
1) for
the
determination of the
creditors
2) determine any
objections to the
appointment of receiver
3) direct creditors to
comment on the
Rehabilitation Plan
4) direct the rehabilitation
receiver to evaluate the
financial condition of the
debtor and submit report
within 40 days
-there shall be a waiver of
taxes and fees due to the
National Government and
to LGUs from the issuance
of the commencement
order until approval of the
Rehabilitation plan or the
dismissal of petition,
whichever is earlier
CONFIRMATION OF
REHABILITATION PLAN
1) Rehabilitation plan and
its provisions shall be
binding upon the debtor
and all creditors whether or
not such persons have
participated in the
proceeding
2) debtor shall comply with
the provisions
3)payments shall be made
to creditors in accordance
with the plan
4)contracts bet. Debtor and
creditors shall be
interpreted as continuing to
apply to the extent that
they dont conflict with the
For the
determination
of the
objections to
the
Rehabilitation
plan
N/A
For the
election and
appointment
of liquidator
Approval of the
Rehabilitation
plan shall have
the legal effect
as
Confirmation
of Plan
CRAM DOWN
EFFECT: the
Rehabilitation
Plan shall
have the
same legal
effect as
Confirmation
of a Plan
LIQUIDATION ORDER:
1)The juridical debtor is dissolved and its juridical
existence terminated
2)Legal title of all the assets of the debtor shall be
vested in the liquidator/court
3)All contracts of the debtor shall be deemed
terminated unless the liquidator, w/in 90 days from
the date of his assumption of office, declares
otherwise and the contracting party agree
4)No separate action for the collection of an
unsecured claim shall be allowed (direct claims to
liquidator)
5) No foreclosure proceeding shall be allowed for
180 days
For the
election
and
appointme
nt of
liquidator
For the
election
and
appointme
nt of
liquidator
For the
election
and
appointme
nt of
liquidator
SUSPENSI
ON
ORDER:
No
creditor
shall sue
or institute
proceedin
gs to
collect his
claim from
the debtor
from the
time of
filing of
the
petition
and for so
long as
the
proceedin
gs remain
pending
Except:
a)those
creditors
having
claims for
personal
plan
5) any
compromises/reschedule of
timing of payments by
debtor shall be binding on
the creditor regardless
whether the plan is
successfully implemented
6) claims arising after the
approval of the plan that
are otherwise not treated
by the Plan are NOT subject
to Suspension Order
labor,
maintenan
ce,
expense
of last
illness of
debtor 60
days prior
filing
b) secured
creditors
COMMODATUM
Object
Purpose
Obligation
Status of
Ownership
Ability to
demand
return
Nonconsumable
Except:
consumable if
used for
exhibition
purposes only
Temporary
use of the
thing
Take care of
the thing with
due diligence
Return the
thing upon
expiration of
period or
purpose
Retained by
bailor
Anytime, if no
period or
purpose has
been agreed
upon or if by
mere
tolerance only
(precarium)
MUTUUM
DEPOSIT
Fungible/
consumable
(i.e. money)
Movable/person
al property
Nonconsumable
Consumption
Safekeeping
Use or
consumption
Return a thing
of the same
kind and
quality
Passes to
bailee
Only after the
expiration of
the period
Compensatio
n
Exchange
(sale)
Exchange a
thing of the
same kind,
quality and
quantity
Gratuitous or
onerous
Gratuitous or
onerous
WAREHOUSE
RECEIPTS ACT
Goods (chattels,
merchandise)
Passes to the
other party
(mutual
exchange)
Cannot
demand
return
because
contract is
already
extinguished
Rescission
only if
grounds exist
If there is an
urgent
necessity
Acts of
ingratitude by
the bailee
Essentially
gratuitous
BARTER
onerous
Retained by the
depositor
Anytime up to:
a. Surrender of
warehouse
receipt
b. Offer to pay
warehouse
mans lien
c. Sign the
acknowledg
ement
Onerous
Object
Requisit
es
Immovables
Real
Rights
over
immovables (leasehold
rights)
Movables
Movables
Incorporeal rights
Except:
can
CM evidenced
by
buildings
by negotiable
agreement
and
no instruments, bills
innocent third party of lading, shares of
prejudiced
stock,
bonds,
warehouse
receipts
1. Constituted to secure fulfillment of principal obligation
2. Mortgagor/Pledgor absolute owner
3. Mortgagor/Pledgor has free disposal/legal authority
*RM, CM and Pledge is VALID as between the parties even if
registration requirements are not complied with BUT is not binding to
3rd persons
To bind
3rd
persons
Must be registered in
the RD
Must be registered in
the CM Registry
Delivery
?
Effect of
default
Must be in a public
instrument with a
description of thing
pledged and the
date
Immovables
1. Must
be
in
writing
2. Express
agreement
between debtorcreditor that the
fruits
will
be
applied
to
payment
of
interest if any,
and then to the
principal
Must be registered in
the RD
Delivery essential
to
constitute
pledge
Delivery
essential
only so that the
antichretic
creditor
can enjoy the fruits
Ownership does not pass to the creditor upon default. Principle of pactum comissorium
applies
Except: In pledge, after two sales and the thing remains unsold, the pledgee can appropriate
(in this case, he has to waive his claim)
Foreclos
ure
Deficien
cy
Extrajudicial/Judicial
Creditor can sue for
deficiency in either EJ/J
Extrajudicial
Private sale
No deficiency
Extrajudicial/Judicial
Creditor can sue for
deficiency in either
EJ/J
PURPOSES: (QUIP-CC)
1. To quiet title to the land and to stop forever
any question as to the legality of said title
2. To relieve the land of unknown claims
3. To guarantee the integrity of land titles and to
protect their indefeasibility once the claim of
ownership is established and recognized
4. To give every registered owner complete
peace of mind
5. To issue a certificate of title to the owner which
shall be the best evidence of his ownership of
the land
6. To avoid conflicts of title in and to real estate
and to facilitate transactions. Lagarda v.
Saleeby [31 Phil 590, 1915]
The registration of property is to: (1) avoid possible
conflicts of title, and (2) facilitate transactions
relative to real property by giving the public the
right to rely upon the face of the Torrens certificate
of title and to dispense with the need of inquiring
further, EXCEPT when the party concerned has
actual knowledge of facts and circumstances that
should impel a reasonably cautious man to make
such further inquiry. Capitol Subdivision v.
Province of Negros, [7 SCRA 60 ,1963)
NATURE OF TORRENS SYSTEM
2. CERTIFICATE OF TITLE
3. Accretion
4. Reclamation
5. Voluntary
Transfer
6. Involuntary
Alienation
7. Descent or
Devise
8. Emancipation
Patent/Grant
(Certificate of
Land Ownership
Award)
amended)
2. Cadastral Act (Act 2259, as amended)
3. Public Land Act (Commonwealth Act 141, as
amended)
4. Emancipation Decree (P.D. 27, as amended)
5. Comprehensive Agrarian Reform Law of 1988
(R.A. 6657, as amended)
ADMINISTRATION OF THE TORRENS SYSTEM
1.
Land Registration Authority
(LRA)
Agency charged with the efficient execution of
the laws relative to the registration of lands,
under the executive supervision of the DOJ
Composition:
a. Administrator
b. 2 Deputy Administrators (as assistants)
The Functions of the LRA are: (SAC)
2.
Extend speedy and effective assistance
to the Dept. of Agrarian Reform, the Land
Bank,
and
other
agencies
in
the
implementation of the land reform program
of the government
2.
Extend assistance to
courts in ordinary and cadastral land
registration proceedings
3.
Be
the
central
repository of records relative to original
registration of lands titled under the Torrens
system, including the subdivision and
consolidation plans of titled lands
2.
Register Of Deeds (ROD)
It is the public repository of records
and
instruments affecting registered or unregistered
lands and chattel mortgages in the province or
city wherein such office is situated
Composition:
a. Register of Deeds
b. Deputy (as assistant)
The functions of the ROD: (PIDI)
1.
Immediately register an instrument
presented for registration dealing with real or
personal property which complies with the
requisites for registration
2.
Shall see to it that said instrument bears
the proper documentary and science stamps
and that the same are properly cancelled
3.
If the instrument is not registerable, he
shall deny the registration thereof and inform
the presentor of such denial in writing,
stating the ground or reason therefore, and
advising him of his right to appeal by
consulta in accordance with Sec. 117 of PD
1529
4.
Pr
epare and keep an index system which
contains the names of all registered owners
and lands registered
The function of the ROD with reference to
registration of deeds, encumbrances, instruments,
and the like is ministerial in nature, provided the
applicant complies with all the requisites. Baranda
v. Gustilo, [165 SCRA 757, 1988]
It is enough that in the RODs opinion an
instrument is registrable for him to register it. The
act being an administrative act does not
contemplate notice to and hearing of interested
parties. Ledesma v. Villasenor, [13 SCRA 494,
1965]
The determination of whether a document is valid
or not is a function that belongs to a court of
competent jurisdiction, and not to the ROD.
Almirol v. ROD of Agusan, [G.R. No. L-22486,
March 20, 1968]
Instances when the ROD may validly deny
registration of a voluntary instrument:
1. Where there are more than 1 copy of the
owners duplicate certificate of title and not all
such copies are presented to the ROD
2. Where the voluntary instrument bears on its
face an infirmity
3. Where the validity of the instrument sought to
be registered is in issue in a pending court suit,
notice of which must be given to parties
4. Registration may be suspended Balbin v.
ROD, [28 SCRA 12,1969]
The ROD may also refuse to register a private
document since Section 112 of PD 152 provided
that deeds of conveyances affecting lands should
be verified and acknowledged before a notary
public or other public officer authorized by law to
take acknowledgement. Gallardo v. IAC, [155
SCRA 248, 1987]
NOTE: When the ROD is in doubt as to the proper
action to take on an instrument or deed presented
to him for registration, he should submit the
question to the Administrator of the LRA en
consulta (Section 117, PD 1529).
B. REGALIAN DOCTRINE
1. CONCEPT
Under the Regalian doctrine which is embodied in
Section 2, Article XII of the 1987 Constitution, all
lands of the public domain belong to the State,
which is the source of any asserted right to
2. EFFECTS
All lands not appearing to be clearly within
private ownership are presumed to belong to the
State. Unless public land is shown to have been
reclassified or alienated to a private person by
the State, it remains part of the inalienable public
domain.
To
overcome
this
presumption,
incontrovertible evidence must be established
that the land subject of the application is
alienable or disposable.
NON-REGISTRABLE PROPERTIES
Article 420
1. Those intended for public
NCC
use, such as roads, rivers,
torrents, ports and bridges
constructed by the State,
banks, shores, roadsteads,
and others of similar
character
2. Those which belong to the
State, without being for
public use, and are intended
for some public service or for
the development of the
national wealth.
Arts. 5 & 6,
Water Code
(PD 1067 )
3. CONCEPT OF NATIVE
TIME IMMEMORIAL
TITLE,
C. CITIZEN REQUIREMENTS
1. INDIVIDUALS AND
CORPORATIONS
Alienable lands of the public domain:
Only Filipino citizens may acquire not more than
12 hectares by purchase, homestead or grant, or
lease not more than 500 hectares.
Private corporations may lease not more than
1,000 hectares for 25 years renewable for
another 25 years
D. NON-REGISTRABLE PROPERTIES
Regalian
Doctrine
under the
1935, 1973,
and 1987
Constitution
E. ORIGINAL REGISTRATION
Types Of Registration:
1. Original Registration
2. Subsequent Registration
ORIGINAL REGISTRATION UNDER P.D. 1529
is a proceeding brought before the RTC (as a
land registration court) to determine title or
ownership of land on the basis of an application
for registration or answer by a claimant in a
cadastral registration.
1. REGISTRATION
REQUIREMENTS
PROCESS
AND
iv.
c. Posting
Posting in conspicuous place on subject
land and on bulletin board of municipal
building at least 14 days before initial
hearing
6. Service of notice by the sheriff upon
contiguous owners, occupants and those
known to have interests in the property
7. Filing of answer to the application by any
person whether named in the notice or not
8. Hearing by the court
9. Promulgation of judgment by the Court
10. Issuance of the decree declaring the
decision final and instructing the LRA to
issue a decree of confirmation and
registration
Decree issued by LRA after finality of judgment;
contains technical description of land.
i.
Decrees dismissing application
ii.
Decrees
of
confirmation
and
registration
*0. Subject only to appeal
11. Entry of the decree of registration in the
LRA
1 year after the date of entry, it becomes
incontrovertible and amendments will not be
allowed except clerical errors. It is deemed
conclusive as to the whole world.
- Puts an end to litigation
- Purpose of Torrens system is protected
12. Sending a copy of the decree of registration
to the corresponding ROD
13. Transcription of the decree of registration
in the registration book and issuance of the
owners duplicate original certificate of title
to the applicant by the ROD upon payment
of the prescribed fees
NOTE: Noncompliance with the requisites will
make the Certificate of Title (CT) issued invalid
and cancellable by the courts.
open,
continuous,
exclusive,
notorious
possession and occupation of alienable and
disposable lands of the public domain under
a bona fide claim of ownership since June 12,
1945 or earlier
2. Those who acquired ownership of private
land by prescription under the provisions of
existing laws
3. Those who acquired ownership of private
lands or abandoned river beds by right of
accession or accretion under the existing
laws
4. Those who have acquired ownership of land
in any manner provided for by law
NOTE: All these persons must be natural-born
Filipino citizens. By way of exception juridical
persons may apply for registration of leased
agricultural and disposable lands not exceeding
1,000 hectares in area for a period of 25 years and
renewable for not more than 25 years (Sec. 3,
Article XII, 1987 Constitution), and except
when the land has been previously acquired by
prescription by a natural person and subsequently
transferred to a juridical entity. In this case, a
corporation may apply for judicial confirmation of
title. Dir. of Lands v. IAC and ACME, [146
SCRA 159 (1986]
Limitation To Ownership Of Land By
Corporation:
1. Private Lands
a. At least 60% Filipino (Sec. 7, Article XII,
1987 Constitution)
b. Restricted as to extent reasonably
necessary to enable it to carry out
purpose for which it was created
c. If engaged in agriculture, it is restricted
to 1,024 hectares
2. Patrimonial Property of the State (Sec. 3,
Article XII, 1987 Constitution)
a. May only Lease (CANNOT own land of the
public domain) for 25 years renewable
b. Limited to 1,000 hectares
c. Apply to both Filipinos & foreign
corporations
Determinative of this issue is the character of the
parcels of land whether they were still public or
already
private
when
the
registration
proceedings were commenced. If they are already
private lands, the constitutional prohibition against
acquisitions by a private corporation would not
apply. Natividad v. CA, [202 SCRA 439, 1991]
FORM OF THE APPLICATION
(Sec. 15, PD 1529): (WSS)
1.
Written
2.
Si
together
with
application
all
original
SPECIAL DEFAULT
When a party appears at
initial hearing without
having filed an answer
and asks court for time to
file answer but failed to
do so within period
allowed
in
land registration proceedings, the ownership by a
person of a parcel of land is sought to be
established. After the ownership has been
proved and confirmed by judicial declaration, no
further proceeding to enforce said ownership is
necessary, except when the adverse or losing
party had been in possession of the land and the
winning party desires to oust him therefrom.
Ronald Ting v. Liro, [G.R. No. 168913,
March 14, 2007]
Post-Judgment Incidents
1. Writ of Possession: order to sheriff to
deliver the land to the successful party
litigant; no prescription against: (1) the
loser and (2) anyone unlawfully and
adversely occupying
When writ may not issue: When a party
entered into property after issuance of final
decree, is not an oppositor in registration
proceeding, and is in possession of land for at
least 10 years
2. Writ of Demolition: the complement of
writ
of
possession;
to
demolish
improvements introduced by oppositor or
his successor in interest
Means to Recover Possession
1. Forcible entry
2. Unlawful detainer
3. Accion publiciana
4. Accion reivindicatoria
Decree of Registration
The decree issued by the LRA pursuant to
the order of the court.
Binds the land, quiets title thereto, subject
only to such exceptions or liens as may be
provided by law
Conclusive upon all persons including the
government
Contents of The Decree (DMD-DO)
1. Date, hour and minute of its entry
2. Whether the owner is married or
unmarried, and if married, the name of the
spouse; provided that if the land is conjugal
property, the decree shall be issued in the
name of both spouses
3. If the owner is under disability, the nature
of such disability, and if a minor, his age
4. Description of the land and shall set forth
the estate of the owner, and also show their
relative easements, liens, attachments, and
other encumbrances
5. Other matters to be determined in
pursuance of the law
Certificate of
collateral attack
Sec.
48
of
P.D.
title
1529
not
subject
provides
that
to
a
PD 1529
Voluntary
Landowner
Lands
covered
usually
involves
private land
3. CADASTRAL REGISTRATION
CADASTRAL REGISTRATION is a proceeding in
rem initiated by the filing of a petition for
registration by the government, not by the
persons claiming ownership of the land subject
thereof, and the latter are, on the pain of losing
their claim thereto, in effect, compelled to go to
court to make known their claim or interest
therein and to substantiate such claim or interest
Procedure: (NN-CP-PAHD-DI)
1. Notice of cadastral survey published once
in OG and posted in conspicuous place with
a copy furnished to the mayor and
barangay captain
2. Notice of date of survey by the Bureau of
Land Management and posting in bulletin
board of the municipal building of the
municipality or barrio, and he shall mark
the boundaries of the lands by monuments
set-up in proper places thereon
3. Cadastral survey
4. Filing of petition
5. Publication (twice in successive issues of
OG), mailing, posting
6. Filing of answer
7. Hearing of the case
8. Decision
9. Issuance of the decree and certificate of
title
NOTE: The cadastral court is not limited to a
mere adjudication of ownership in favor of one or
more claimants.
If there are no successful
claimants, the property is declared public land.
Parties
Purpose
Person who
requests
the survey
Effect of
judgment
it may also
refer to public
agricultural
lands if the
object of the
action is
confirmation of
an imperfect
title
Applicant and
opponent
Petitioner
comes to court
to confirm his
title and seeks
the registration
of the land in
his name
Landowner
no adverse
claim
if the
applicant fails
to prove his
title, his
application
may be
dismissed
without
prejudice (no
res judicata)
CADASTRAL
Compulsory
Director of
Lands
all classes of
lands are
included
Government,
Landowners
must come to
court as
claimants of
their own lands
Government
asks the court
to settle and
adjudicate the
title of the land
Government
if none of the
applicants can
prove that he
is entitled to
the land, the
same shall be
declared public
(res judicata)
PATENTS
Classification of Land of Public Domain:
The classification is the exclusive prerogative of
executive and not of the judiciary
only
classification
Homestead Restrictions:
1. Land cannot be alienated within 5 years after
approval of application for patent
2. It cannot be liable for satisfaction of debt
within 5 years after approval of patent
application
3. Subject to repurchase of heirs within 5 years
after alienation when allowed already
4. No
private
corporation,
partnership,
association may lease land unless it is solely
for commercial, industrial, educational,
religious or charitable purpose, or right of
way (subject to consent of grantee and
approval of Secretary of Environment &
Natural Resources)
FISHPONDS
Before: It was included in the definition of
agriculture,
therefore
the
conversion
of
agricultural land to fishponds did not change
character of land
Exceptions:
1. Action for partition because it is not a
conveyance
2. Alienations or encumbrances made in favor
of the government
KIND
S
Home
stead
Paten
t
TO
WHOM
GRANTE
D
To any
Filipino
citizen
over the
age of 18
years or
head of a
family
OTHER REQUIREMENTS
Free
Paten
t
Sales
Paten
t
To any
natural
born
citizen of
the
Philippine
s
(filing
ended
Dec. 31,
2000)
Citizens of
the
Philippine
s of lawful
age or
head of
the family
may
purchase
public
agricultur
al land of
not more
than 12
hectares
To any
citizen of
legal age
for
residential
purposes
Speci
al
Paten
t
To NonChristian
Filipinos
under the
Public
Land Act
land is situated
must have cultivated at least
1/5 of the land applied for
Grantee does not own more
than 12 hectares of land
has continuously occupied
and cultivated, either by
himself or his predecessors-ininterest, tracts of disposable
agricultural public land for at
least 30 years prior to March
28,1990
has paid real property taxes
on the property while the same
has not been occupied by any
person
grant will be limited to 12
hectares only
to have at least 1/5 of the
land broken and cultivated
within 5 years from the date of
the award (public auction)
shall have established actual
occupancy, cultivation, and
improvement of at least 1/5 of
the land until the date of such
final payment
for agricultural lands suitable
for residential, commercial or
industrial purposes, patent is
issued only after:
1.) full payment of purchase
price, and
2.) completion of the
construction of permanent
improvements appropriate for
purpose for which the land is
purchased (must be completed
within 18 months from date of
award)
does not own a home lot in
the municipality in which he
resides
in good faith, established his
residence on a parcel of land of
public domain not needed for
public service
not more than 1000 sq. m.
occupant must have
constructed his house on the
land and actually resided
therein
no public auction required
not subject to any restriction
against encumbrance or
alienation
Secretary of the DILG shall
certify that the majority of the
non-Christian inhabitants of
any given reservation have
advanced sufficiently in
civilization
to
another person
In absence of registration, title to public land
is
not
perfected
and
therefore
not
indefeasible
In case of 2 titles obtained on same date, the
one procured through a decree of registration is
superior than patent issued by director of lands
2 titles procured by one person: one from
homestead patent, and one from judicial decree
and sold to 2 different persons, the one who
bought it for value and in good faith and who
registered first shall have preference
A free patent obtained through fraud or
misrepresentation is void. Furthermore, the
one-year prescriptive period provided in the
Public Land Act does not bar the State from
asking for the reversion of property acquired
through such means. Once a patent is registered
and the corresponding certificate of title issued,
the land covered by them ceases to be part of
the public domain and becomes private property.
indefeasibility of a title does not attach to titles
secured by fraud and misrepresentation. Wellsettled is the doctrine that the registration of a
patent under the Torrens System does not by
itself vest title; it merely confirms the registrants
already existing one. Verily, registration under
the Torrens System is not a mode of acquiring
ownership. Therefore, under Section 101 of
Commonwealth Act No. 141, the State -- even
after the lapse of one year -- may still bring an
action for the reversion to the public domain of
land that has been fraudulently granted to
private individuals. Further, this indefeasibility
cannot be a bar to an investigation by the State
as to how the title has been acquired, if the
purpose of the investigation is to determine
whether fraud has in fact been committed in
securing the title. Republic v. Heirs of
Alejaga, [393 SCRA 361, 2002]
4. REMEDIES
REMEDIES AVAILABLE TO AGGRIEVED PARTY
IN REGISTRATION PROCEEDINGS
Motion to Lift/Set Aside order of default
(Rule 9 3)
By defaulted oppositor
Before judgment
Fraud, accident, mistake, excusable negligence
(FAME) and with valid defense, under oath
Motion for New Trial
(Rule 37)
By aggrieved party
Within 15 days from receipt of judgment
Grounds (FAMINE):
a. FAME
b. Newly discovered evidence:
Discovered after trial
not discovered earlier even with exercise of
diligence
will probably alter judgment
c. Award of excessive damages, or insufficiency
of evidence to justify decision, or that the
decision is against the law
Appeal
by aggrieved party
Within 15 days from notice of judgment
To the CA by ordinary appeal; thence to SC by
petition for review
Relief from Judgment
(Rule 38 2)
By aggrieved party
Within 60 days from knowledge of, and 6 months
from, judgment
no new trial
upon finality of judgment
Requisites:
a. FAME, with affidavit of merit; in case of
extrinsic fraud, state that deprived of hearing
or prevented from appealing
b. After judgment
c. Person deprived of right is party to case
(applicant or oppositor)
Petition for Review of Registration Decree
( 32 PD1529)
By aggrieved party, including person deprived of
opportunity to be heard
To be filed in same registration case
Within 1 year after entry of decree of
registration
it will not prosper if transferred to innocent
purchaser for value
Grounds:
a. actual or extrinsic fraud, committed outside
trial, preventing petitioner from presenting
his side
b. fatal infirmity in the decision for want of due
process
c. lack of jurisdiction of the court
Requisites:
a. Petitioner has a real and dominical right
b. He has been deprived of such right
c. Through actual or extrinsic fraud
d. The petition is filed within 1 year from the
issuance of the decree
e. The property has not been passed on to an
innocent purchaser for value (IPV)
Action for
Reconveyance
(96 PD 1529/ 102 Act 496)
By aggrieved party, whose land was registered
a.
T
he aggrieved party sustained loss or damage,
or is deprived land or any estate or interest
therein
b.
Such loss, damage or deprivation was
occasioned by the bringing of the land under
the operation of the Torrens system or arose
after the original registration of the land
c.
The loss, damage or deprivation was due
to: fraud, or any error, omission, mistake, or
misdescription in any certificate of title or in
any entry or memorandum in the registration
book. (Loss or damage should not be due to
breach of trust or mistake in resurvey
resulting in expansion of area in certificate of
title.)
d.
The aggrieved party was not negligent.
e.
He is barred under the provisions of PD
1529 or under the provisions of any law from
recovering such land;
f.
The action has not prescribed: must be
instituted within 6 years from the issuance of
the certificate of title (If plaintiff is minor,
insane or imprisoned, he has additional 2
years after disability is removed to file the
action.)
Cancellation Suits
By aggrieved party or the government
In case of double title: earlier title prevails,
unless procured by fraud or is jurisdictionally
flawed. The later title is void even if IPV derives
title therefrom
In case of non-registered land: to be filed by
the Sol-Gen for cancellation of title or reversion
to State)
Voiding or cancellation of OCT does not affect
derivative TCTs if their holders not given
opportunity to be heard and defend their title
Annulment of Judgment
May only be availed of when the ordinary
remedies of new trial, petition for relief, or
other appropriate remedies are no longer
available through no fault of the petitioner.
Linzag v. CA, [291 SCRA 304 , 1998]
Reversion Suit
The objective is the cancellation of the title and
the consequential reversion of the land to the
State
Grounds:
a. Violation of Sections 118, 120, 121 and
122 of the Public Land Act (ex. alienation
or sale of homestead executed within the
5 year prohibitory period)
b. When the land patented and titled is not
capable of registration
c. Failure of the grantee to comply with
conditions imposed by law to entitle him
to a patent or grant
d. When area is an expanded area
e. When the land is acquired in violation of
c.
c.
After notice and hearing, the court is to order
issuance of new title with a memorandum
that it is issued in place of lost certificate
(duplicate)
2. Adverse claim in registered land
Different from lis pendens:
Lis pendens has no expiration period but
adverse claim is only for 30 days.
Lis pendens is a notice that property is in
litigation while adverse claim signifies that
somebody is claiming better right
Recent Ruling: adverse claim can only be
removed upon court order, therefore, it is
considered to be the more permanent and
stable one as compared to lis pendens
3. Petition Seeking Surrender of Duplicate
Title
When a person in possession of the owners
duplicate certificate fails to surrender the same to
the ROD, a party in interest may file a petition in
the RTC to compel the surrender of such duplicate
title.
Grounds: registration pursuant to voluntary and
involuntary conveyances and issuance of a new
certificate and for purposes of amendment or
alteration
After hearing, the court may order issuance of a
new certificate and annul the old certificate
The new certificate shall contain an annotation
regarding the annulment of the old certificate
4. Amendment and Alteration of Certificate
of Title
A certificate of title entered in a registration book
cannot be altered, amended except in direct
proceeding in court (summary proceeding). A
court order is necessary to alter entries of such
registration books.
A petition for such purpose may be filed by the (a)
registered owner, or (b) other person having an
interest in the registered property, or (c) in proper
cases, the ROD with the approval of the LRA
Administrator
Grounds (CRIMENN):
1. New interest that does not appear on the
instrument have been created
2. Interest have been terminated or ceased
3. Omission or error was made in entering
certificate
4. Name of person on certificate has been
changed
e.
f.
2.
a.
b.
c.
ADMINISTRATIVE RECONSTITUTION
May be availed of only in case of:
1.
Substantial loss or destruction
of the original land titles due to fire, flood,
or other force majeure as determined by
the Administrator of the LRA
2.
The number of certificates of
title lost or damaged should be at least
10% of the total number in the possession
of the Office of the ROD
3.
These lost or damaged titles
should not be less than 500, and
4.
Petitioner must have the
duplicate copy of the certificate of title
(RA 6732)
Sources:
1. Owners duplicate of the certificate of
title
2. Co-owners, mortgagees, or lessees
duplicate of said certificate
Contents
a.
That the owners duplicate
of the certificate of title had been lost
or destroyed
b.
That
no
co-owners,
mortgagors, or lessees duplicate had
been issued
c.
The location, area and
boundaries of the property
d.
The nature and description
of the buildings or improvements, if
any, which do not belong to the owner
of the land, and the names and
addresses of the owners of such
buildings or improvements
e.
The names and addresses of
the (a) occupants or persons in
possession of the property, (b) of the
owners of the adjoining properties
and (c) of all persons who may have
any interest in the property
f.
A detailed description of the
encumbrance, if any, affecting the
property
g.
A statement that no deeds
or other instruments affecting the
property have been presented for
registration, or, if there be any, the
registration thereof has not been
accomplished, as yet
NOTE:
The law provides for retroactive application
thereof to cases 15 years immediately preceding
1989
When the duplicate title of the landowner is lost,
the proper petition is not reconstitution of title,
but one filed with the court for issuance of new
title in lieu of the lost copy
PUBLICATION, MAILING AND POSTING IN
PETITIONS FOR RECONSTITUTION OF TITLE:
Notice shall be PUBLISHED twice in successive
issues of the Official Gazette,
Must be POSTED on the main entrance of the
provincial building and of the municipal building
of the municipality or city where the land is
situated, and
Must be SENT BY REGISTERED MAIL or
otherwise, at the expense of the petitioner, to
every person named in said notice (actual
F. SUBSEQUENT REGISTRATION
SUBSEQUENT REGISTRATION
Where
incidental
matters
after
original
registration may be brought before the land
registration court by way of motion or petition
filed by the registered owner or a party in
interest.
Rules as to the necessity and effects of
registration in general
1. Except a will that purports to convey or
affect a registered land, the mere
execution of the deeds of sale,
mortgage, or lease or other voluntary
documents serve only 2 purposes:
Sale
Real property
mortgage
Lease
Pacto de retro sale
Extra-judicial
settlement
Free
patent/homestead
Powers of attorney
Trusts
An
innocent
purchaser for value of
registered
land
becomes
the
registered owner the
moment he presents
and
files
a
duly
notarized and valid
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
INVOLUNTARY
DEALINGS
Refer to such writ or
order or process issued
by a court of record
affecting registered land
which by law should be
registered
to
be
effective, and also to
such instruments which
are not the willful acts of
the registered owner
and which may have
been
executed
even
without his knowledge or
against his consent
Attachment
Injunction
Mandamus
Sale on execution of
judgment or sales for
taxes
Adverse claims
Notice of lis pendens
No
presentation
required; annotation in
entry book is sufficient
1. VOLUNTARY DEALINGS
Operative Act: registration by owner, if deed is
not registered, is binding only between parties
General Rule MIRROR DOCTRINE: Where
there is nothing on the certificate of title to
indicate any cloud or vice in the ownership of the
property, or any encumbrance thereon, the
purchaser is not required to explore further than
what the Torrens title upon its face indicates in
quest for any hidden defect or inchoate right that
may defeat his right thereto. Fule v. Legare,[ 7
SCRA 351, 1963]
Every person dealing with registered land may
safely rely on the correctness of the certificate of
title issued therefore Even if a decree in a
registration proceeding is infected with nullity,
still, an innocent purchaser for value relying on a
Torrens title issued in pursuance thereof is
protected. Cruz v. CA & Suzara, [281 SCRA
491, 1997]
Although generally a forged or fraudulent deed is
a nullity and conveys no title, however, there are
instances where such a fraudulent document
may become the root of a valid title. One such
instance is where the certificate of title was
already transferred from the name of the true
owner to the forger, and while it remained that
way, the land was subsequently sold to an
innocent purchaser. Fule v. Legare, [7 SCRA
351, 1963]
Exceptions (BOB-MILK)
1. Where the purchaser or mortgagee is a
bank/financing institution, the general rule
that a purchaser or mortgagee of the land
is not required to look further than what
appears on the face of the title does not
apply. Dela Merced v. GSIS, [365 SCRA
1, 2001]
2. The ruling in Fule v. Legare cannot be
applied where the owner still holds a valid
and existing certificate of title covering the
same property because the law protects
the lawful holder of a registered title over
the transfer of a vendor bereft of any
transmissible right. Tomas v. Tomas, [98
SCRA 280, 1980]
3.
3.
Purchaser in bad faith. Egeo v. CA, [174 SCRA
484, 1989]
4. Where a person buys land not from the
registered owner but from one whose rights
to the land has been merely annotated on
the certificate of title. Quiniano v. CA, [39
SCRA 221, 1971]
5. Sufficiently strong indications to impel closer
inquiry into the location, boundaries, and
condition of the lot. Francisco v. CA, [153
SCRA 330, 1987]
Persons legal interest cannot raise this exception
Principle of caveat emptor simply requires the
purchaser of real property to be aware of the
alleged title of the vendor such that one who buys
without checking the vendor's title takes all the
risks and losses consequent to such failure. While a
buyer of registered land need not go beyond its
certificate of title, the buyer is obliged to
investigate or inspect the property sold to him
when there are circumstances that would put him
on guard, such as the presence of occupants other
than the registered owner. This does not apply in
this case. DOro Land v. Claunan,[ 516 SCRA
681, 2007]
6. Purchases land with a certificate of title
containing a notice of lis pendens
7. Purchaser had full knowledge of flaws and
defects of the title. Bernales v. IAC, [166
SCRA 519, 1988]
Process of Registration: (Generally)
1. File the instrument creating or transferring
the interest and the certificate of title with
ROD, including:
a. Owners duplicate
b. Payment of fees and documentary stamp
tax
c. Evidence of full payment of real estate
tax
d. Document of transfer: 1 additional copy
for city/provincial assessor
2. ROD shall make a memorandum on the
certificate of title, signed by him
3. Issuance of the TCT
Registration of Real Property Mortgage
1. Execution of deed in a form sufficient in law
(public instrument)
2. Registration with ROD where the land lies
a. Present deed of mortgage together with
b. Owners Duplicate and affidavit of good
faith
c. Payment of fees
d. ROD shall enter upon original certificate of
title and upon duplicate a memorandum
3.
3.
2. INVOLUNTARY DEALINGS
Transactions affecting land in which cooperation of
registered owner is not needed, or even against his
will
aa Attachment
A writ issued at the institution or during progress of
an action commanding the sheriff to attach the
property, rights, credits, or effects of the defendant
to satisfy demands of the plaintiff
Kinds:
b.
c.
d.
Preliminary
Garnishment
Levy on execution
e.
f.
strictly observed
attachment
b.
c.
FILING of APPLICATION
Survey plan approved by
Bureau of Lands
Muniments of title
SETTING OF DATE of
Initial Hearing by court
order
Set 45-90 days from order
Transmittal of documents
and evidence to LRA
INITIAL HEARING
JUDGMENT
Appeal
TRIAL
same order as ordinary
civil proceedings
(15) days
FINALITY OF JUDGMENT
Decree of finality
Instruction to LRA to issue
decree of registration
Entry of DECREE OF
REGISTRATION in LRA
Copy sent to Registrar of
Deeds
OCT
Transcription of the
decree and issuance of
the OCT
Filing of
OPPOSITION
By any party
claiming interest
On/ before
hearing OR time
allowed by court
CADASTRAL
SURVEY
President
orders Dir. Of
Lands to cause
cadastral survey
NOTICE of
Survey to
persons
appearing to
claim interest
Publication
1x in OG
Mailing
Posting
Geodetic
Engineer/
employees of
Bureau of
Lands inform
occupants/
persons
claiming
STATE FILES
PETITION
Instituted by Dir.
of Lands
(represented by
Sol-Gen)
Containing:
technical
description
survey plan
interest
Persons
claiming
interest
cooperate w/
Engineer re:
boundaries
HEARING
JUDGMENT
ANSWER to
Petition
Any claimant
files answer
(partakes of an
action to
recover) on/
before hearing
OR time allowed
by court
NOTICE of
Initial Hearing
to parties
appearing to have
interest and
adjoining owners
Publication 2x
in OG
(successive
issues)
Mailing
Posting
DECREE
MOTION TO
DISMISS
If land covered
prior OCT
pursuant to land
patent
if barred by res
judicata
Appeal
Court may
issue writ of
possession
or order
demolition
ANNEX B:
CADASTRAL
REGISTRATION
PROCEEDINGS
O. TORTS
=================================
TOPICS UNDER THE SYLLABUS
I. Principles
A. Abuse of right; elements
B. Unjust enrichment
C. Liability without fault
D. Acts contrary to law
E. Acts contrary to morals
II. Classification of Torts
A. According to manner of
commission: intentional, negligent
and strict liability
B. According to scope: general or
specific
=================================
I. PRINCIPLES
Art. 2176. Whoever by act or omission causes
damage to another, there being fault or
negligence, is obliged to pay for the damage
done. Such fault or negligence, if there is no preexisting contractual relation between the
parties, is called a quasi-delict and is governed
by the provisions of this Chapter. (1902a)
ELEMENTS OF QUASI DELICT/TORTS:
1. Act or omission
2. Damage or injury is caused to another
3. Fault or negligence is present
4. There is no pre-existing contractual
relations between the parties
5. Causal connection between damage
done and act/omission
NEGLIGENCE
The omission of that degree of diligence which is
required by the nature of the obligation and
corresponding to the circumstances of the
persons, time and place. (Art. 1173, NCC)
KINDS OF NEGLIGENCE
1. Quasi delict (Art. 2176 NCC)
2. Criminal negligence (Art. 356 RPC)
3. Contractual negligence (NCC provisions on
contracts particularly Arts. 1170 to 1174)
ABUSE OF RIGHTS (ART 19)
1. There is a legal right or duty
2. The right or duty is exercised in bad faith
3. For the sole intent of prejudicing or injuring
another
Common element under Articles 19 and
21: the act must be intentional
II.
CLASSIFICATION OF TORTS
COMISSION OF TORTS
1. INTENTIONAL (DELICT): Every person
criminally liable for a felony is also civilly liable.
NOTE: QUASI DELICT includes acts done
through FAULT.
2. NEGLIGENT (QIUASI DELICT): Whoever by
act or omission causes damage to another,
there being fault or negligence, is obliged to pay
for the damage done. Such fault or negligence,
if there is no pre-existing contractual relation
between the parties.
Page 52 of 401
3.
STRICT LIABILITY: Persons Expressly Made
Liable By Law Even without Fault
ACCORDING TO SCOPE
GENERAL TORTS: Covered by Art. 2176 on
Quasi-Delict
SPECIFIC TORTS: These are those found in
specific provisions of law, including the Chapter
on Human Relations, Common Carriers, etc.
=================================
TOPICS UNDER THE SYLLABUS
III. The Tortfeasor
A. The direct tortfeasor
(1) Natural persons
(2) Juridical persons
B. Persons made responsible for
others
(1) In General
(a) Quasi-delicts under Article
2180, how interpreted
Family Code, Arts. 218-219,
221
(b) Indirect liability for
intentional acts
(c) Presumption of negligence on
persons indirectly responsible
(d) Nature of liability; joint or
solidary?
(2) In Particular
(a) Parents
(b) Guardian
(c) Owners and managers of
establishments and
enterprises
(d) Employers
(e) State
(f) Teachers and heads of
establishments of arts and
trades
C. Joint tortfeasors (Art. 2194, Civil
Code)
=================================
III. TORTFEASOR
TORTFEASOR - Whoever by act or omission
causes damage to another, there being no fault
or negligence is obliged to pay for the damage
done (art 2176).
CORPORATE TORTFEASOR
A corporation is civilly liable in the same manner
as natural persons for torts, because "generally
THE
PERSONS
VICARIOUSLY
Page 53 of 401
1.
PARENTS
The
father, and in case of his death or incapacity,
the mother are responsible for damage
caused by minor children who live in their
company.
Father and Mother shall jointly exercise
parental authority over common children. In
case of disagreement, father's decision shall
prevail (Art. 211).
NOTE: Persons liable for the act of minors
other than parents:
a. Those exercising substitute parental
authority
b. Surviving grandparents
c. Oldest sibling, over 21 years old
unless unfit or unqualified
d. Childs actual custodian, over 21
years old unless unfit or disqualified
2.
GUARDIANS
Guardians are liable for damages caused by
the minor or incapacitated persons who are
under their authority and who live in their
company.
3.
OWNERS
&
MANAGERS
OF
ESTABLISHMENT/
ENTERPRISE - Owners & managers of
establishment or enterprise are responsible
for damages caused by their employees who
are:
o in the service of the branches in which
the latter are employed OR
o in occasion of their function
4.
EMPLOYERS
Employers shall be liable for damages
caused by their:
o employees and
o household helpers
who are acting w/in the scope of their
assigned task even though the former are
not engaged in any business or industry
(unlike in RPC subsidiary liability of
employer attaches in case of insolvency of
employer for as long as the employer is
engaged in business/industry)
DEFENSES AVAILABLE TO EMPLOYERS:
o exercise of due diligence ins election
and supervision of employees
o act/omission
was
made
outside
working hours and in violation of
company rules
5.
STATE - The state is
responsible when it acts through a special
agent, but not when the same is caused by
Page 54 of 401
Absence
of
negligence
does
not
necessarily mean absence of liability. A child
under 9 years can still be subsidiarily liable
with his property (Art. 100 RPC)
2. PHYSICAL DISABILITY
GENERAL RULE: a weak or accident prone
person must come up to the standard of a
reasonable man, otherwise, he will be
considered as negligent
EXCEPTION: If the defect amounts to a real
disability, the standard of conduct is that of a
reasonable person under like disability.
3. EXPERTS AND PROFESSIONALS
They should exhibit the case and skill of one
who is ordinarily skilled in the particular field
that he is in; the rule regarding experts is
applicable not only to professionals who have
undergone formal education. (Fernando v. CA)
4. NATURE OF ACTIVITY
There are activities which by nature impose
duties to exercise a higher degree of
diligence (ex. Banks, Common Carriers)
5. INTOXICATION
GENERAL RULE:
Mere intoxication is not
negligence nor establishes want of ordinary
care. But it may be considered to prove
negligence.
EXCEPTION: Under Art. 2185 of the NCC it is
presumed that a person driving a motor vehicle
has been negligent if at the time of the mishap,
he was violating any traffic regulation
6. INSANITY
An insane person is exempt from liability.
However, by express provision of law, there may
be civil liability even when the perpetrator is
held to be exempt from criminal liability. The
insanity of a person does not excuse him or his
guardian from liability based on quasi delict (Art.
2180 and 2182 NCC)
=================================
TOPICS UNDER THE SYLLABUS
V. Proximate Cause
A. Concept
(1) Definition
(2) Test
(3) Distinguished from immediate
cause
(4) Distinguished from intervening
cause
(5) Distinguished from remote and
concurrent
B. Cause in fact
(1) Substantial factor test
(2) Concurrent causes
C. Legal cause
(1) Natural and probable
consequences
(2) Foreseeability
D. Efficient intervening cause
E. Cause vs. Condition
F. Last clear chance
=================================
V. PROXIMATE CAUSE
A. CONCEPT OF PROXIMATE CAUSE
PROXIMATE CAUSE is defined as that cause
which, in natural and continuous sequence,
unbroken by any efficient intervening cause,
Page 55 of 401
NECESSARY LINK
Page 56 of 401
REMOTE CAUSE
SUBSTANTIAL FACTOR
It is the rule under the substantial factor test
that if the actor's conduct is a substantial
factor in bringing about harm to another, the
fact that the actor neither foresaw nor should
have foreseen the extent of the harm or the
manner in which it occurred does not prevent
him from being liable. Philippine Rabbit Bus
Lines v. IAC, [G.R. 66102, August 30, 1990]
B. CAUSE IN FACT
BUT FOR TEST
The (but for) test requires a plaintiff to establish
that the act complained of probably caused the
subsequent
disability.
NELSON
V.
FIBREBOARD CORPORATION, [912 F.2d
469]
The test applied to determine whether negligent
conduct was the efficient, or proximate cause of
the injury or loss suffered by the claimant is
whether such conduct is a cause without which
the injury would not have taken place (which
test is frequently referred to as the "sine qua
non rule"), or is the efficient cause which set in
motion the chain of circumstances leading to the
injury. {Sangco, Philippine Law on Torts
and Damages, 1994)
CONCURRENT CAUSES
If one suffers damage as the proximate result of
the negligence of two others, and the damage
would not have occurred but for the negligence
of each of such parties, both are liable to the
person so injured. MENNE v. CELOTEX
CORPORATION, [861 F.2d 1453]
C. LEGAL CAUSE
TEST OF FORSEEABILITY
Where the particular harm was reasonably
foreseeable at the time of the defendants
misconduct, his act or omission is the legal
cause thereof. Foreseeability is the fundamental
test of the law of negligence. To be negligent,
the defendant must have acted or failed to act
in such a way that an ordinary reasonable man
would have realized that certain interests of
certain persons were unreasonably subjected to
a general but definite class of risk which made
the actors conduct negligent, it is obviously the
consequence for the actor must be held legally
Page 57 of 401
E. CAUSE/CONDITION
Page 58 of 401
=================================
TOPICS UNDER THE SYLLABUS
VI. Legal Injury
A. Concept
B. Elements of right
C. Violation of right or legal injury
D. Classes of injury
(1) Injury to persons
(2) Injury to property
(3) Injury to relations
=================================
VI. LEGAL INJURY
DAMAGE the detriment, injury or loss which is
occasioned by reason of fault of another in the
property or person
DAMAGES 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 rights
DAMNUM ABSQUE INJURIA or Damage
without Injury a person may have suffered
physical hurt or injury, but for as long as no
legal injury or wrong has been done, there is no
liability
INJURY
DAMAGE
DAMAGES
Legal
Loss, hurt or The
invasion of a harm which recompense
legal right
results from or
the injury
compensatio
n
awarded
for
the
damage
suffered
=================================
TOPICS UNDER THE SYLLABUS
VII. Intentional Torts
A. General
(1) Concept
(2) Classes
(a) Interference with persons
and property
Page 59 of 401
2. SEDUCTION
WITHOUT
BREACH
OF
PROMISE TO MARRY
Seduction by itself, is also an act
contrary to morals, good customs and
public policy
The defendant is liable if he employed
deceit, enticement, superior power or
abuse of confidence in successfully
having sexual intercourse with another
even if he satisfied his lust without
promising to marry the offended party
It may not even matter that the plaintiff
and the defendant are of the same
gender
3. SEXUAL ASSAULT
Defendant is liable for all forms of sexual
assault
4. DESERTION BY A SPOUSE
A spouse has the legal obligation to live
with his/her spouse. If a spouse does not
perform his/her duty to the other, he
may be liable for damages for such
omission because the same is contrary
to law, morals, good customs and public
policy.
5.
Page 60 of 401
7. ILLEGAL DISMISSAL
The right of the employer to dismiss an
employee should not be confused with
the manner in which the right is
exercised and its effects.
If the dismissal was done anti-socially
and oppressively, the employer should
be deemed to have violated Art. 1701 of
the NCC (which prohibits acts of
oppression by either capital or labor
against the other) and Art. 21
An employer may be held liable for
damages if the manner of dismissing is
contrary to morals good customs and
public policy.
8. MALICIOUS PROSECUTION
An action for damages brought by one
against another whom a criminal
prosecution, civil suit, or other legal
proceeding
has
been
instituted
maliciously and without probable cause,
after termination of such prosecution,
suit or proceeding in favor of the
defendant therein.
The action which is terminated should be
one begun in malice, without probable
cause to believe that the charges can be
sustained
STATUTORY BASIS: Art. 19-21, 2, 32,
33, 35, 2217, 2219(8) NCC
ELEMENTS:
a. The fact of the prosecution and the
further fact that the defendant was
himself the prosecutor; and that the
action was finally terminated with an
acquittal
Page 61 of 401
Page 62 of 401
REMEDIES
AGAINST
PRIVATE
NUISANCES
1.
Civil Action
2.
Abatement,
without
judicial
proceedings
WHO MAY AVAIL OF REMEDIES
Public officers
Page 63 of 401
=================================
TOPICS UNDER THE SYLLABUS
VII. Negligence
A. Concept
B. Good father of a family or
reasonably prudent man
C. Standard of care
(1) Civil Code, Art. 1173
(2) Emergency Rule
D. Unreasonable risk of harm
E. Evidence
F. Presumption of negligence
(1) Legal provisions
(2) Res ipsa loquitur
G. Defenses
(1) Complete
(a) Absence of element
(b) Accident or fortuitous event
(c) Damnum absque injuria
(d) Authority of law
(e) Assumption of risk
(f) Last clear chance
(g) Prescription (Civil Code, Arts.
1144, 1146, and 1150)
(h) Waiver
(i) Double recovery (Civil Code,
Art. 2177)
=================================
VII. NEGLIGENCE
ELEMENTS OF QUASI DELICT/TORTS:
1. Act or omission
2. Damage or injury is caused to another
3. Fault or negligence is present
4. There is no pre-existing contractual
relations between the parties
5. Causal connection between damage
done and act/omission
NOTE:
Failure of the court to make any
pronouncement, favorable or unfavorable, as
to the civil liability of the accused amounts
to a reservation of the right to have the civil
liability litigated and determined in a
separate action. The rules nowhere provide
that if the court fails to determine the civil
liability it becomes no longer enforceable.
Jarantilla v. CA, [171 SCRA 42]
Page 64 of 401
CONTRACT
Contract
Preponderance of evidence
Exercise of extraordinary diligence
(in contract of carriage), Force
Majeure
There is a pre-existing contract
Contractual party.
Prove the ff.:
1. existence of a contract
2. breach
CONTRACT
Vinculum Juris
Contract
Proof Needed
Preponderance
of
evidence
Exercise
of
extraordinary
diligence (in contract
of carriage), Force
Majeure
There is a pre-existing
contract
Contractual party.
Prove the ff.:
1. existence of a
contract
2. breach
Solidary
Defense available
Pre-existing contract
Burden of proof
Liability of Employer
Reservation Requirement
Effect of judgment of
acquittal in a criminal case
involving
same
act/omission
QUASI DELICT
Negligent
act/
omission
(culpa,
imprudence)
Preponderance of evidence
Exercise of diligence of a good father of a
family in the selection and supervision of
employees
No pre-existing contract
Victim.
Prove the ff.:
1.damage
2. negligence
3.causal connection between negligence
and damage done
DELICT
Act / omission committed by means of dolo
(deliberate, malicious, in bad faith)
Proof beyond reasonable doubt
No pre-existing contract
Prosecution. Accused is presumed innocent until
the contrary is proved.
Subsidiary
Civil aspect is Impliedly instituted with criminal
action
Page 65 of 401
non-existent
Page 66 of 401
CIRCUMSTANCES TO CONSIDER
1. Time
2. Place
3. Personal circumstances of the Actors
GOOD FATHER OF A FAMILY (pater familias)
2. DAMAGE / INJURY
NOTE:
If
plaintiff's
negligence
is
only
contributory, he is considered partly responsible
only. Plaintiff may still recover from defendant but
the award may be reduced by the courts in
proportion to his own negligence
EMERGENCY RULE
Under this rule, one who suddenly finds himself in
a place of danger, and is required to act without
time to consider the best means that may be
adopted to avoid the impending danger, is not
guilty of negligence, if he fails to adopt what
subsequently and upon reflection may appear to
have been a better method, unless the danger in
which he finds himself is brought about by his own
negligence
DELSAN
Transport
v.
C&A
Construction, [G.R. 156034, October 1, 2003]
3.
CAUSAL
CONNECTION
BETWEEN
NEGLIGENCE AND DAMAGE Defendants
negligence must be the proximate cause of the
injury sustained by the plaintiff to enable plaintiff
to recover. Thus, if plaintiffs own conduct is the
cause of the injury there can be no recovery.
2. COMMON CARRIERS
Article 1733 of the New Civil Code mandates that
common carriers, by reason of the nature of their
business, should observe extraordinary diligence in
the vigilance over the goods they carry.
In case of loss of the goods, the common carrier is
presumed to have been at fault or to have acted
negligently.
In case of death of or injuries to passengers,
common carriers are presumed to have been at
fault or to have acted negligently
3.
DEFENDANT
IN
POSSESSION
OF
DANGEROUS WEAPONS OR SUBSTANCES,
SUCH AS FIREARMS AND POISON
There is prima facie presumption of negligence
on the part of defendant if death or injury
results from such possession
EXCEPTION: The possession or use thereof is
indispensable in his occupation or business
4. RES IPSA LOQUITOR
(The thing speaks for itself) - Grounded on the
difficulty in proving thru competent evidence,
public policy considerations.
Where the thing which causes injury is shown to be
under the management of the defendant, and the
accident is such as in the ordinary course of things
does not happen if those who have the
management use proper care, it affords reasonable
evidence, in the absence of an explanation by the
defendant, that the accident arose from want of
care. Layugan v. IAC, [G.R. 73998, November
14, 1998]
be
considered
unforeseeable
to
a
reasonable man
c. Social Value and Utility of the Action The act which subjects an innocent person
to an unnecessary risk is a negligent act if
the risk outweighs the advantage accruing
to the actor and even to the innocent
person himself.
d. Person exposed to the risk - A higher
degree of diligence is required if the person
involved is a child.
5. DOCTRINE OF ASSUMPTION OF RISK
Volenti non fit injuria / That to which a
person assents is not deemed in law an
injury.
REQUISITES:
a. Intentional exposure to a known
danger
b. One who voluntarily assumed the risk
of an injury from a known danger
cannot recover in an action for
negligence or an injury is incurred
c. Plaintiffs acceptance of risk (by
law/contract/nature of obligation) has
erased defendants duty so that his
negligence is not a legal wrong
d. Applies to all known danger
6. DUE DILIGENCE - diligence required by
law/contract/ depends on circumstances of
persons, places, things
7. FORTUITOUS EVENT - no person shall be
responsible for those events which cannot
be foreseen, or which though foreseen were
inevitable
REQUISITES:
a. 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;
b. It must be impossible to foresee the
event which constitutes caso fortuito or if
it can be foreseen it must be impossible to
avoid
c. The occurrence must be such as to
render it impossible for the debtor to
fulfill his obligation in a normal manner
d. The obligor must be free from any
participation in the aggravation of the
injury resulting to the creditor.
12. PROSCRIPTION
AGAINST
DOUBLE
RECOVERY - Responsibility for fault or
negligence under quasi-delict is entirely
separate and distinct from civil action
arising from the RPC but plaintiff cannot
recover damages twice for same act or
omission of the defendant
13. WAIVER/ CONSENT
14. ACT OR OMISSION IS NOT THE
PROXIMATE CAUSE OF THE DAMAGE
15. OTHER GROUNDS Motion To Dismiss:
a. Lack of jurisdiction over person of
defendant
b. Lack of jurisdiction over subject
matter
c. Venue improperly laid
d. Plaintiff has no legal capacity to sue
e. There is another action pending
between same parties for same cause
f. Cause of action is barred by prior
judgment /statute of limitations
g. Pleading asserting claim states no
cause of action
h. Claim set forth in pleading has been
paid, waived, abandoned, extinguished
i. Claim is unenforceable under the
provision of statute of fraud
j. Condition precedent for filing claim
has not been complied with
===============================
TOPICS UNDER THE SYLLABUS
IX. Special Liability in Particular
Activities
A. General
(1) Concept
B. Products Liability
(1) Manufacturers or processors
a. Elements
b. Consumer Act [RA 7394, Sec.
92-107, (Ch. 1)]
C. Nuisance (Civil Code, Arts. 694707)
(1) Nuisance per se and nuisance
per accidence
(2) Public nuisance and private
nuisance
(3) Attractive nuisance
D. Violation of constitutional rights
They are liable for death and
injuries caused by any harmful substances
used although no contractual relation exists
between them and the consumers
CONSUMER ACT R.A. 7394
NOTE ON STIPULATIONS: The stipulation in a
contract of a clause preventing, exonerating or
reducing the obligation to indemnify for damages
effected, as provided for in this and in the
preceding Articles, is hereby prohibited, if there is
more than one person responsible for the cause of
the damage, they shall be jointly liable for the
redress established in the pertinent provisions of
this Act. However, if the damage is caused by a
component or part incorporated in the product or
service, its manufacturer, builder or importer and
the person who incorporated the component or
part are jointly liable.
SUMMARY OF LIABILITIES:
1. Any Filipino or foreign manufacturer, producer,
and any importer, shall be liable for redress,
independently of fault, design, manufacture,
construction, assembly and erection, formulas and
handling and making up, presentation or packing
of their products, as well as for the insufficient or
inadequate information on the use and hazards
thereof.
NOTE: The manufacturer, builder, producer or
importer shall not be held liable when it evidences:
a) that it did not place the product on the
market;
b) that although it did place the product on the
market such product has no defect;
c) that the consumer or a third party is solely
at fault.
NOTE: This liability applies to tradesman/seller
when the persons named above cannot be, or are
not identified, or when the tradesman did not
preserve the goods adequately.
2. The service supplier is liable for redress,
independently of fault, for damages caused to
consumers by defects relating to the rendering of
the services, as well as for insufficient or
inadequate information on the fruition and hazards
thereof.
3. The suppliers of durable or nondurable
consumer
products
are
jointly
liable
for
imperfections in quality that render the products
unfit or inadequate for consumption for which they
4.
IN
things
NUISANCES
ELEMENTS
a. Any act, omission, establishment, condition
of property, or anything else
b. Which:
Injures or endangers the health or safety
to others, or
Annoys or offends the senses, or
Shocks, defies, or disregards decency or
morality, or
Obstructs or interferes with the free
passage of any public highway or streets,
or any body of water, or
Hinders or impairs use of property
KINDS
Nuisance Per Se - denounced as nuisance
by common law or by statute
Nuisance Per Accidens - those which are in
their nature not nuisances, but may become
so by reason of their locality, surroundings, or
the manner in which they may be conducted,
managed, etc.
Public
affects
a
community
or
neighborhood or any considerable number of
persons
Private - one that is not included in the
foregoing definition; affect an individual or a
limited number of individuals only
REMEDIES AGAINST PUBLIC NUISANCES
Public officers
===============================
TOPICS UNDER THE SYLLABUS
DAMAGES-BOOK II
I. General Considerations
A. Classification
(1) Under Art. 2197 of the Civil Code
(2) According to purpose
(3) According to manner of
determination
(4) Special and ordinary
II. Actual and Compensatory Damages
A. Concept
B. Requisites
(1) Alleged and proved with
certainty
(2) Not speculative
C. Component Elements
(1) Value of loss; unrealized profit
(2) Attorneys fees and expenses of
litigation
(3) Interest
D. Extent or scope of actual damages
(1) In contracts and quasi-contracts
(2) In crimes and quasi-delicts
===============================
X. DAMAGES
A. GENERALLY
DAMAGES MAY BE: (MENTAL)
1. Actual or compensatory;
2. Moral;
3. Nominal;
4. Temperate or moderate;
5. Liquidated; or
6. Exemplary or corrective.
NOTE:
A complaint for damages is a personal action
B. ACTUAL
Adequate compensation for the value of
loss suffered or profits which obligee failed to
obtain
EXCEPTIONS:
1. Law
2. Stipulation
REQUIREMENTS:
i.
Need to be pleaded
ii.
Pray for the relief that claim for loss be
granted
iii.
Prove the loss
===============================
TOPICS UNDER THE SYLLABUS
III. Moral Damages
A. Concept (Arts. 2217-2218)
B. When recoverable (Arts. 22192220)
(1) In seduction, abduction, rape
and other lascivious acts
(2) In acts referred to in Arts. 21,
26, 27, 28, 29, 32, 34 & 35, Civil
Code
(3) In cases of malicious prosecution
IV. Nominal Damages
A. Concept
B. When awarded
V. Temperate or Moderate Damages
A. Concept
B. When awarded
VI. Liquidated Damages
A. Concept (Civil Code, Art. 2226)
B. Rules governing in case of breach
of contract
VII. Exemplary or Corrective Damages
A. Concept (Civil Code, Art. 2229)
B. When recovered
(1) In criminal offenses (Civil Code,
Art. 2230)
(2) In quasi-delicts (Civil Code, Art.
2231)
(3) In contracts and quasi-contracts
(Civil Code, Art. 2232)
C. Requisites
(1) Arts. 2233, 2234
===============================
C. MORAL
MORAL DAMAGES Include: (PBMF-MWSS)
a. Physical suffering
b. Besmirched reputation
c. Mental anguish
d. Fright
e. Moral shock
f. Wounded feelings
g. Social humiliation
h. Serious anxiety
i. Sentimental value of real or personal
property may be considered in adjudicating
moral damages
j. The social and economic/financial standing
of the offender and the offended party
should be taken into consideration in the
computation of moral damages
k. Moral damages is awarded only to enable
the injured party to obtain means,
diversions or amusements that will serve to
alleviate the moral suffering he has
undergone, by reason of defendant's
culpable action and not intended to enrich
a complainant at the expense of defendant
IN WHAT CASES MAY MORAL DAMAGES BE
RECOVERED (Enumeration Not Exclusive):
a. Criminal offense resulting in physical
injuries
b. Quasi-delicts causing physical injuries
c. Seduction, abduction, rape or other acts of
lasciviousness
d. Adultery and concubinage
e. Illegal or arbitrary detention or arrest
f. Illegal search
g. Libel, slander or other form of defamation
h. Malicious prosecution
i.
BE
G. EXEMPLARY
===============================
TOPICS UNDER THE SYLLABUS
XIII. Damages in Case of Death
A. In crimes and quasi-delicts causing
death
(1) In death caused by breach of
conduct by a common crime
IX. Graduation of Damages
A. Duty of injured party
(1) Art. 2203
B. Rules
(1) In crimes
(2) In quasi-delict (Civil Code, Art.
2214)
(3) In contracts, quasi-contracts and
quasi-delicts (Civil Code, Art. 2215)
(4) Liquidated damages (Civil Code,
Art. 2227)
(5) Compromise
X. Miscellaneous Rules
A. Damages that cannot co-exists
(1) Nominal with other damages
(Art. 2223)
(2) Actual and Liquidated (Art.
2226)
B. Damages that must co-exist
(1) Exemplary with moral,
temperate, liquidated or
compensatory
C. Damages that must stand alone
(1) Nominal Damages (Art. 2223)
===============================
H. DAMAGES IN CASE OF DEATH
BY CRIMES AND QUASI-DELICT
1. Medical & Hospital Bills