HIGHLIGHTS OF READING ASSIGNMENT

CIVIL LAW REVIEW II, July 03, 2021

A. Conventional Redemption/ Sale with Right to Repurchase

1. Art. 1609 - Vendee is subrogated to the vendor’s rights and action.

Art. 1609. The vendee(buyer) is subrogated to the vendor’s (seller)

rights and actions.

Examples of Rights of Vendor Transferred to the

Vendee
(a) Right to mortgage the property (provided seller is really
the owner);
(b) Right to continue prescription;
(c) Right to receive fruits. Thus, the seller in making the
repurchase, has no right to require the buyer to make
an accounting of the products received from the land.
(Lustado v. Penol, et al., L-10825, Sept. 27, 1957).

2. Art. 1610 – Creditors of the vendor can exercise the right of redemption against the vendee, only after
they have exhausted the property of the vendor.

Art. 1610. The creditors of the vendor cannot make use

of the right of redemption against the vendee, until after
they have exhausted the property of the vendor.

Example:
S sold to B with pacto de retro. S has unpaid creditors.
Can the creditors exercise S’s right of redemption?
ANS.: Yes, but only if S’s properties have first been
exhausted.

B. Legal Redemption

1. Art. 1619 – Legal redemption is the right to be subrogated in place of one who acquires a thing by –

a. purchase

b. dation in payment

c. any other transaction where ownership is transmitted by onerous title.

Art. 1619. Legal redemption is the right to be subrogated,

upon the same terms and conditions stipulated in
the contract, in the place of one who acquires a thing by
purchase or dation in payment, or by any other transaction
whereby ownership is transmitted by onerous title.

C. Assignment of Credits and Other Corporeal Rights

1. Art. 1624 – Assignment of credits shall be perfected in accordance with Art. 1475 which provides for
the perfection of sales.
Assignment of Credits and Rights
Assignment is the process of transferring gratuitously
or onerously the right of the assignor to the assignee, who
would then be allowed to proceed against the debtor.

Perfection of Assignment
Note the cross-reference to Art. 1475.
“Art. 1475. The contract of sale is perfected at the moment
there is a meeting of minds upon the thing which is
the object of the contract and upon the price.
“From that moment, the parties may reciprocally demand
performance, subject to the provisions of the law governing
the form of contracts.”

2. Art. 1627 – Assignment of credits includes the following accessory rights –

a. guaranty d. pledge

b. mortgage e. preference

D. Lease

1. Art. 1642 – The following are the three (3) kinds of lease contracts

a. lease of things (real or personal property)

b. lease of services (household services, contract of labor)

c. lease of work (contract for a piece of work)

Art. 1642. The contract of lease may be of things, or of

work and service.

2. Art. 1643 – Lease of Things –one of the parties binds himself to –

a. give to another enjoyment or use of the thing leased

b. for a price certain

c. for a period which may be definite or indefinite.

Note –No lease shall be valid for more than ninety- nine (99) years.

3. Art. 1644 – Lease of work or service – one of the parties binds himself to

a. execute a piece of work or to render to the other some service

b. for a price certain

`Note –There exists no relation of principal and agent between the parties.

E. Lease of Rural and Urban Lands

1. Rural lands - those where the lessee principally is interested in soil products, the principal purpose is
to obtain products from the soil
2. Art. 1648 – Lease of real property shall be recorded in the Registry of Property to bind a third party

Art. 1648. Every lease of real estate may be recorded

in the Registry of Property. Unless a lease is recorded, it
shall not be binding upon third persons.

3. Art. 1649 – The lessee cannot assign the lease without consent of the lessor, unless there is a
stipulation to the contrary.

4. Art. 1650 – General Rule - In the contract of lease of a thing, the lessee may sublet the things leased.

Exception – if there is an express prohibition

Art. 1650. When in the contract of lease of things

there is no express prohibition, the lessee may sublet the
thing leased, in whole or in part, without prejudice to his
responsibility for the performance of the contract toward
the lessor.

5. Art. 1652 - The sublessee is subsidiarily liable for the rent.

Art. 1652. The sublessee is subsidiarily liable to the lessor

for any rent due from the lessee. However, the sublessee
shall not be responsible beyond the amount of rent due from
him, in accordance with the terms of the sub-lease, at the
time of the extrajudicial demand by the lessor.

Payments of rent in advance by the sublessee shall be

deemed not to have been made, so far as the lessons claim
is concerned, unless said payments were effected in virtue
of the custom of the place.

6. Effect on the sublessee if the lessee is ousted – the sublessee shall also be ousted. (see jurisprudence)

Sipin, et al. v. CFI of Manila

74 Phil. 649
FACTS: A leased a house to B who in turn leased part
of it to C. A ousted B thru lawful proceedings. Should C be
also ousted? If so, what would be C’s remedy?
HELD: Yes, C should also be ousted. The remedy of C
would be to proceed against B. The sublessee can invoke no right
superior to that of his sublessor, and the moment the latter is
duly ousted from the premises, the former (sublessee) has no
leg to stand on. The sublessee’s right is to demand reparation
for damages from his sublessor, should the latter be at fault.

Brodett v. De la Rosa
77 Phil. 572
ISSUE: When the sublessor is ousted in an unlawful
detainer case, who else may be ousted even if they have not
been made party-defendant?
HELD: The sublessee, the relatives, the friends of the
sublessor and sublessee.
[NOTE: Also, the house guests of the sublessor and
sublessee. (Cruz v. Roxas, 42 O.G. No. 3, p. 468).]
F. Rights and Obligations of Lessor and Lessee

1. Art. 1654 – Obligation of the lessor

a. to deliver the thing leased

b .to make all the necessary repairs

c. to maintain the lease in peaceful and adequate enjoyment of the lease for the entire duration
of the lease

Art. 1654. The lessor is obliged:

(1) To deliver the thing which is the object of the
contract in such a condition as to render it fi t for the use
intended;
(2) To make on the same during the lease all the necessary
repairs in order to keep it suitable for the use to
which it has been devoted unless there is a stipulation to
the contrary;
(3) To maintain the lessee in the peaceful and adequate
enjoyment of the lease for the entire duration of the contract.

2. Art. 1657 – Obligations of the lessee

a. to pay the price

b. to use the thing lease as a diligent father of the family

c. pay expenses of the deed of lease

Art. 1657. The lessee is obliged:

(1) To pay the price of the lease according to the terms
stipulated;
(2) To use the thing leased as a diligent father of a
family, devoting it to the use stipulated; and in the absence
of stipulation, to that which may be inferred from the nature
of the thing leased, according to the custom of the place;
(3) To pay the expenses for the deed of lease.

3. Case – a. The lessor has the right to increase the rent at termination of the lease

b. the lessee has the option to pay the new rental or leave the premises

Exception - when the increase in rent is unreasonably exorbitant.

4. Art. 1659 – Alternative Remedies of the aggrieved party in case of non-fulfillment of duties by either
the lessor or lessee –

a. rescission and damages

b. damages, only (leaving the contract in force – specific performance)

5. Rescission – requires judicial action (Rep. v. Hospital de San Juan de Dios)

G. Art. 167 - Implied New Lease

Art. 1670. If at the end of the contract the lessee should
continue enjoying the thing leased for fi fteen days with
the acquiescence of the lessor, and unless a notice to the
contrary by either party has previously been given, it is
understood that there is an implied new lease, not for the
period of the original contract, but for the time established
in Articles 1682 and 1687. The other terms of the original
contract shall be revived.

Implied New Lease (Tacita Reconduccion)

This Article speaks of an implied new lease (tacita reconduccion)
— that which arises if at the end of the contract,
the lessee should continue enjoying the thing leased for 15
DAYS with the acquiescence of the lessor — unless of course a
notice to the contrary had previously been given by EITHER
PARTY.

1. Elements of an implied new lease

a. at the end of the contract, the lessee continues to enjoy the thing leased for fifteen (15) days
with acquiescence of the lessor

b. no previous notice had been given to the contrary by either

c. consequence - there is an implied new lease for the period fixed under Arts. 1682 and 1687
(on a month-to-month or daily or year-to-year basis)

2. Illustrative cases – see # 4, Comment

Illustrative Problem
(a) At the expiration of a 3-year contract, the lessor notifi ed
the lessee to vacate the premises, but the lessee still
remained for more than 15 days. Is there an implied
new lease here?
ANS.: No, in view of the demand to vacate. (Art.
1670; see Gonzaga v. Balone and San Pedro, 43 O.G.
No. 6, p. 2164).

b) Resurreccion was leasing Salamanca’s house. Although

the term had already expired, Resurreccion still remained
on the premises with Salamanca’s consent. Sixteen (16)
days later, Salamanca asked the lessee to vacate the
premises, but the latter refused to leave. May Salamanca
successfully institute a suit for unlawful detainer?
ANS.: No, in view of the implied new lease. The
demend to vacate came after the statutory period of 15
days. (Art. 1670).

H. Judicial Ejectment

1. Grounds for judicial ejectment

a. period has expired

 b. lack of payment of price stipulated

c. violation of any of the condition in the contract

d. less ee devotes the thing leased to any use or service not stipulated which caused the
deterioration thereof or he does not observe the requirements under Art. 1659, no. 2.