Urban Land - 5,000 square meters

CIVIL LAW (BAR TRENDS) CONSTITUTIONAL PROHIBITION on the Private Corporations in Acquiring Public Land
-Through lease only not exceeding 1,000 hectares and not exceed 25 years and renewable for not more
LAND TITLES AND DEEDS than 25 years.

REGALIAN DOCTRINE Note: If the subject property is already a private land when the registration commenced, the constitutional
- Does not negate native title to lands held in private ownership since time immemorial. prohibition on Corporations is not applicable.

PUBLIC LAND ACT (CA No. 141) Republic vs. De Joson

- Citizens of the Philippines, who by themselves or through their predecessors-in-interest have been in
OPEN, CONTINUOUSN, EXCLUSIVE and NOTORIOUS possession and occupation of alienable and
disposable agricultural land of the public domain under a bona fide claim of ownership since JUNE 12,
1945, or earlier, shall be conclusively presumed to have performed all the conditions essential to a
government grant and shall be entitled to a certificate of title.
Heirs of Tanyag vs Gabriel et.al
- Registration of a piece of land under the Torrens System does not create or vest title, because it is not
a mode of acquiring ownership.
- The land of public domain, to be the subject of appropriation, must be declared ALIENABLE AND
DISPOSABLE either by the President or the Secretary of the DENR. Occupation thereof in the concept of
owner, no matter how long cannot ripen into ownership and be registered as a title.
Restrictions on alienation or encumbrance of lands titled pursuant to patents.
1. Land acquired under free patent or homestead patent is prohibited from being alienated. Exception: If
favor of the Government, 5 years from and after the issuance of the patent or grant.
2. No alienation, transfer or conveyance of any homestead after five years and before twenty-five years
after the issuance of title shall be valid without the approval of the Secretary of DENR.

PD No. 1529, Section 48 Palomo vs. CA

- a certificate of title shall not be subject to collateral attack. It cannot be altered, modified or cancelled, - Forest land is not registrable and possession thereof, no matter how lengthy, cannot convert it into
except in a direct proceeding for that purpose in accordance with law. private property UNLESS such lands are reclassified as DISPOSABLE and ALIENABLE.

Spouses Ragudo vs Fabella Estate Tenants Association, Inc. PURCHASER IN GOOD FAITH AND FOR VALUE
- Laches does not operate to deprive the registered owner of a parcel of land of his rights to recover - is one who buys property of another, without notice that some other person has a right to, or interest in,
possession thereof. such property, and pays a full and fair price for the same, at the time of such purchase, or before he has
notice of the claim or interest of some other person in property. Good faith is the opposite of fraud and of
Rufloe vs.Burgos bad faith, and its non-existence must be established by competent proof.
- The defense of INDEFEASIBILITY of a Torrens title does not extend to a trasferree who takes it with
notice of a flaw in a title of his transferor. To be effective, the inscription in the registry must have been NON-REGISTRABLE LANDS
made in good faith. A HOLDER IN BAD FAITH of a certificate of title is not entitled to protection of the 1. Property of public domain or those intended for public use, public service or development of national
law, for the law cannot be used as a shield for fraud. wealth.
2. Forest or timber lands
INDEFEASIBILITY OF TITLE 3. Water sheds
- After the expiration of 1 year period from the issuance of the decree of registration upon which it is 4. Mangrove swamps
based, it becomes incontrovertible. May only be attacked on the ground of actual fraud within 1 year from 5. Mineral lands
the date of entry and such attack must be direct and not by collateral proceeding. 6. National Parks and plazas
7. Military or naval reservations
MIRROR DICTRINE 8. Foreshore lands
- All persons dealing with a property covered by Torrens Certificate of title are not required to go beyond 9. Reclaimed lands
what appears on the face of the title. 10. Submerged areas
11. River banks
Exceptions: 12. Lakes, Rivers, Creeks, and lagoons
1. The purchaser or mortgagee is a BANK/FINANCING institution. 13. Reservation for public and semi-public purposes
2. The owner still holds a valid and existing certificate of title covering the same property because the law 14. Protected Areas
protects the lawful holder of a registered title over the transfer of a vendor bereft of any transmissible 15. Resources within ancestral domains
right. 16. Others of similar character
3. The purchaser is in bad faith.
4. The purchaser purchases land with a certificate of title containing a notice of lis pendens.
5. There are sufficiently strong indications to impel closer inquiry into the locations, boundaries and
condition of the lot.
6. The purchaser had full knowledge of flaws and defects in the title.
7. A person buys land not from the registered owner but from whose rights to the land has been merely
annotated on the certificate of title.

Note:
GR: Aliens cannot acquire private lands.
XPN: By way of hereditary succession.

Maximum area that may be acquired by a natural born citizen who has lost his Philippine Citizenship.
Rural Land - 3 hectares

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 If the condition is potestative in the sense that its fulfillment depends exclusively upon the will of the
debtor, and the same is suspensive, both the condition and obligation are void.

INSTANCES WHERE THE COURT MAY FIX THE PERIOD (BAR 1991, 1997, 2003)
1. If the obligation does not fix a period, but from its nature and circumstances it can be inferred that a
OBLIGATIONS period was intended by the parties.
2. If the duration of the period depends upon the will of the debtor (BAR 1997, 2003)
- is a juridical necessity to give, to do or not to do. 3. In case of reciprocal obligations, when there is a just cause fixing the period.
4. If the debtor binds himself when his means permit to do so.
Debtor is liable for damages if he is guilty of DEFAULT, FRAUD, NEGLIGENCE, or BREACH.
Debtor is not liable for damages due to FORTUITOUS EVENT. CHARACTER OF AN OBLIGATION

DELAY (MORA) OR DEFAULT GR: When two or more creditors or two or more debtors concur in one and the same obligation, the
Those obliged to deliver or to do something incur in delay from the time the obligee (creditor) judicially or presumption is that the obligations is JOINT.
extrajudicially demands from the fulfillment of their obligation.
EXCEPTIONS:
In reciprocal obligations, neither party incurs in delay if the other does not comply or is not ready to 1. Law requires solidarity
comply in a proper manner with what is incumbent upon him. From the moment one of the parties fulfills 2. Expressly stipulated that there is solidarity.
his obligations delay by other begins. (NCC, Art 1169)(BAR 2002). 3. Nature of the obligation requires solidarity.
4. Charge or condition is imposed upon heirs or the legatees and the will expressly makes charge or
An occurrence or happening which could not be foreseen, or even if foreseen, is inevitable (NCC, Art condition in solidum.
1174)(2002, 2008 BAR) 5. Solidary responsibility is imputed by a final Judgment upon several defendants.

GR: There is no liability for loss in case of fortuitous event. NOTE: The well-entrenched rule is that the solidary obligation cannot lightly be inferred. It must be
positively and clearly expressed. (Smith, Bell and Co. vs. CA)
EXCEPTIONS:
1. Law DACION EN PAGO
2. Nature of the obligation requires the assumption of risk. - The delivery and transmission of ownership of a thing by the debtor to the creditor as an accepted
3. Stipulation equivalent of the performance of the obligation. The property given may consist not only of a thing but
4. The debtor is guilty of dolo, malice or bad faith, has promised the same thing to two or more persons also a real right.
who does not have the same interest.
5. The debtor contributed to the loss. - to have a valid dacion en pago, the alienation of the property must fully extinguish the debt.
6. The possessor is in bad faith.
7. The obligor is guilty of fraud, negligence or delay or if he contravened the tenor of the obligation.(BAR CESSION
2000, 2015) - The assignment or cession contemplated here is the abandonment of the universality of the property of
the debtor for the benefit of his creditors. In order that such property may be applied to the payment of
REMEDIES IN CONNECTION WITH SPECIFIC PERFORMANCE the credits.
1. Exhaustion of the properties of the debtor (not exempt from attachment under the law)
2. ACCION SUBROGATORIA (subrogatory action) - An indirect action brought in the name of the debtor CONSIGNATION
by the creditor to enforce the former’s rights to except: - Act of depositing the object of the obligation with the court or competent authority after the creditor has
A. Personal rights of the debtor. unjustifiably refused to accept the same or is not in a position to accept it due to certain reasons or
B. Rights inherent in the person of the debtor circumstances.
C. Properties exempt from execution.
e.g. family home - In order that the consignation of the THING DUE may release the obligor, it must first be ANNOUNCED
3. ACCION PAULIANA (rescissory action) - An action to impugn or assail the acts done or contracts to the persons interested in the fulfillment of the obligation. (Art. 1257, NCC)(BAR 2014)
entered into by the debtor in fraud of his creditor.
REQUISITES OF COMPENSATION
NOTE: Resort to the remedies must be in the order stated above. (NCC, Art 1177) 1. Each one f the obligors must be bound principally, and that he be at the same time a principal creditor
of the other except guarantor who may set up compensation as regards what the creditor may owe the
SUSPENSIVE CONDITION principal (NCC, Art 1279-1280)
A condition the fulfillment of which will give rise to the acquisition of a right. While the condition has not 2. Both debts consist in sum of money, or if the things due are consumable, they be of the same kind and
arrived yet, in the meantime, the rights and obligations of the parties are suspended. also of the same quality if the latter has been stated.
3. Both debts are due
RESOLUTORY CONDITION (1999 BAR) 4. Both debts are liquidated and demandable.
A condition where the rights already acquired are lost upon fulfillment of the condition. It is also known as 5. Neither debt must be retained in a controversy commenced by third person and communicated at due
condition subsequent. time to the debtor (neither debt is garnished (NCC, Art 1279)
6. Compensation must not be prohibited by law. (NCC, 1290)
POTESTATIVE CONDITION (1997, 2000, 2003 BAR)
An act, which if not done, would give rise to a cause of action against the obligor. It contemplates a GR: The mutual debts must be both due (NCC, Art 1279)
situation where rights are already acquired but subject to an obligation, the non-fulfillment of which does EXCEPTIONS: The parties may agree that their mutual debts be compensated even if the same are not
not affect the rights already acquired but merely gives a cause of action in favor of the other party. yet due. (NCC, Art. 1282)

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NOVATION
- It is the substitution or change of an obligation by another, resulting in its extinguishment or
modification, either by changing the object or principal conditions, or by substituting another in the place
of the debtor or subrogating another in the place of the debtor or by subrogating a third person to the
rights of the creditor.
KINDS OF NOVATION
1. DELEGACION - the substitution is initiated by the old debtor himself (delegante) by convincing another
person (delegado) to take his place and to pay his obligation to the creditor (1996, 2001 BAR)
2. EXPROMISSION - the substitution of the old debtor by a new debtor is upon the initiative or proposal
of a third person (1996, 2001 BAR)
CONTRACTS
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.
RELATIVITY OF CONTRACTS
- Contracts take effect only between the parties or their assigns and heirs
Res inter alios act aliis neque nocet prodest
- a thing done between others does not harm or benefit others.
- a contract can only obligate the parties who entered into it, or their successors who assumed their
personalities, and that, concomitantly, a contract can neither favor nor prejudice third pyyersons.
MUTUALITY OF CONTRACTS
- The contract must bind both contracting parties and its validity or compliance cannot be left to the will of
one of them.
Note: A contract containing a condition whose efficacy or fulfillment is dependent solely on the
uncontrolled will of one of the parties is void.
VOIDABLE CONTRACTS
- are those where consent is vitiated either by the incapacity of one of the contracting parties or by
mistake, violence, intimidation, undue influence or fraud. These contracts are binding, unless they are
annulled by a proper action in court. It is susceptible of ratification (NCC, Art.1390)
UNENFORCEABLE CONTRACTS
- Those contracts which cannot be enforced by action or complaint, unless they have been ratified by the
party or parties who did not given consent.
Kinds:
1. Those entered into the name of another person by one who has been given no authority/legal
representation or acted beyond his powers.
2. Those that do not comply with the Statue of Frauds
3. Those where both parties are incapable of giving consent to a contract. (NCC, Art.1403)
VOID AND INEXISTENT CONTRACTS
- In general, void and inexistent contracts may be defined as those which lack absolutely either in fact
and or in law one or some or all of those elements which are essential for its validity. It has no force and
effect from the beginning and which cannot be ratified or validated by lapse of time.
SALES
- is a contract where one party (seller or vendor) obligates himself to transfer the ownership of and to
deliver a determinate thing, while the other party (buyer or vendee) obligates himself to pay for said thing
a price certain in money or its equivalent. (NCC, Art. 1458)
ABSOLUTE SALE
- the title to the property is not reserved to the seller is not granted the right to rescind the contract based
on the fulfillment or non-fulfillment, as the case may be, of the prescribed condition.

CONTRACT OF ADHESION CONDITIONAL SALE

- Its is a contract in which one of the parties prepares the stipulations in the form of a ready-made - the seller is granted the right to unilaterally rescind the contract predicated on the fulfillment, as the
contract, which the other party must accept or accept or reject, but not modify, by affixing his signature or case may be, of the prescribed condition.
his adhesion thereto; leaving no room for negotiation and depriving the latter of opportunity to bargain on
equal footing. BASIS CONTRACT TO SALE CONTRACT TO SELL
As regards transfers of Ownership is transferred to the buyer Ownership is transferred upon
- It is not entirely prohibited since the one who adheres to contract is, in reality, free to reject in entirely, upon delivery of the object to him. full payment of the purchase
and if he adheres, he gives his consent. price.
Note: Vendor has lost and cannot
AUTONOMY OF CONTRACTS
recover ownership until and unless the Note: Prior to full payment,
- It is freedom of the parties to contract and to stipulate provided the stipulations are not contrary to law,
contract is resolved or rescinded. ownership is retained by the
morals, good customs, public order or public policy.
seller.
As to numbers of There is only one contract executed There are two contracts:
ESSENTIAL REQUISITES OF CONTRACT
contracts involved between the seller and the buyer. 1. The contract to sell
1. Consent
Note: PREPARATORY SALE
2. Object or subject matter
2. . The deed of absolute sale.
3. Cause or consideration
Note: The principal contract is
executed after full payment of
Note: These three requisites are, therefore, the essential elements of a consensual contract. In real
the purchase price.
contracts, however, in addition to the above, the delivery of the object of the contract is required as
further requisite.

Note: we follow the COGNITIVE THEORY and not the Mailbox Theory. Under the Civil Law, the offer and Payment as a condition Non-payment of the price is a resolutory Full payment of the price is a
acceptance concur only when the acceptance has reached the knowledge of the offeror (actual condition. positive suspensive condition.
knowledge), and not at the time of sending the acceptance.
Vendor loses ownership over the Note: Failure to fully pay the
RESCISSIBLE CONTRACTS
property and cannot recover it until and price is not a breach but an
- These are contracts validly constituted but nevertheless maybe set aside due to a particular economic
unless the contract is resolved or event that prevents the
damage or lesion cause to either to one of the parties or to a third person. It may be set aside in whole or
rescinded. obligation of the vendor title from
in part, or up to the extent of the damage caused (NCC, Art.1381)

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 becoming effective. 2. In case the installments paid were less than 2 years, the seller shall give the buyer a grace period of
Remedies available 1. Specific performance 1. Resolution not less than 60 days. If the buyer fails to pay the installments due at the expiration of the grace period,
2. Rescission 2. Damages the seller may cancel the contact after 30 days from receipt by the buyer of the notice of cancellation or
3. Damages demand for rescission by NOTARIAL ACT.

PRESUMPTION OF EQUITABLE MORTGAGE

OPTION CONTRACT
- It is a preparatory contract in which one party grants to another, for a fixed period and at a determined
price, the privilege to buy or sell, or to decide whether or not to enter into a principal contract.
OPTION MONEY
- It is distinct consideration in case of an option contract. It does not form part of the purchase price
hence, it cannot be recovered if the buyer did not continue with the sale. (NCC, Art.1479)
ERNEST MONEY
- This is the money given to seller by the prospective buyer to show that the latter is truly interested in
buying the property, and its aim to bind the bargain.
- It is actually a partial payment of the purchase price and is considered as proof of the perfection of the
contract.
1. Price of the sale with right to repurchase is unusally inadequate.
2. Seller remains in possession as lessee as otherwise.
3. Upon or after the expiration of the right to repurchase another instrument extending the period of
redemption or granting a new period is executed.
4. Purchaser retains for himself a part of the purchase price.
5. Seller binds himself to pay the taxes on the thing sold.
6. In any other case where the real intention of the parties is that the transaction shall secure the
payment of a debtor or the performance of any other obligation.
7. Art. 1602 shall also apply to a contract purporting to be an absolute sale. (Art.1604)
PACTUM COMMISSORIUM
- A stipulation for automatic vesting of title over the security in the creditor in case of debtor’s default.

RIGHT OF FIRST REFUSAL

- It is a contractual grant, not of the sale of a property, but of the first priority to buy the property in the LEASE
event the owner sells the same.
- the grant of first refusal be embodied in a written contract and the grant of such right must be clear and - Lease may be made orally, except if the lease of real property is made for more than one year, it must
express. be in writing, in compliance with the Statute of Frauds.

DOUBLE SALE EFFECTS IF THE LEASE OF REAL PROPERTY IS NOT REGISTERED

- There is double sale when the same object of the sale is sold to different vendees. (NCC, Art.1544) 1. The lease is not binding on innocent third persons such as purchaser.
1. MOVABLE - Owner who is first to possess in good faith. 2. Naturally, such an innocent third person is allowed to terminate the lease in case he buys the property
2. IMMOVABLE from the owner-lessor.
A. First to register in good faith. 3. When a third person already knows of the existence and duration of the lease, he is bound by such
B. No registration and no possession in good faith lease even if it has not been recorded. The reason is simple : actual knowledge is, for this purpose,
C. No registration and no possession in good faith - person who presents oldest title in good faith. equivalent to registration.
4. If stranger knows of the existence of the lease, but has been led to believe that the lease would expire
RECTO LAW very soon, or before the new in favor of him begins (when in fact this was not true), the stranger cans still
- provides for the remedies of a seller in the contracts of sale of personal property by installments. be considered innocent.

Note: Recto Law applies only to sale payable in installments and not to a sale where there is an initial ASSIGNMENT OF LEASE
payment and the balance is payable in the future, because such is a straight sale, not a sale by - Lessee cannot assign the lease contract without the consent of the lessor, unless there is a stipulation
installments. to the contrary.(NCC Art.1649)

REMEDIES SUBLEASE
1. SPECIFIC PERFORMANCE - Exact fulfillment should the buyer fail to pay. - The lessee may sublet the thing leased, in whole or in part, unless expressly prohibited in the contract
- GR: If availed of, the unpaid seller cannot anymore choose other remedies of lease.(NCC Art 1650)
- XPN: If after choosing specific performance, it has become impossible to perform it, rescission
may be pursued.
2. RESCISSION - Cancel the sale if buyer fails to pay 2 or more installments. TORTS
3. FORECLOSURE - Buyer fails to pay 2 or more installments.
- The seller bars from the recovery of unpaid balance.
LIABILITY OF TORTFEASORS
- The responsibility of two or more persons who are liable for quasi-delict is SOLIDARY (NCC, Art.2194).
MACEDA LAW or REALTY INSTALLMENT BUYER ACT
Each are liable as principals, to the same extent and in the same manner as if they had performed the
- provides for certain protection to particular buyers of real estate payable on installments.
wrongful act themselves.
FEATURES:
LIABILITY OF THE OWNER OF A VEHICLE IN CASE OF AN ACCIDENT
1. After having paid installments for at least 2 years, the buyer is entitled to a mandatory grace period of
- In motor vehicle mishaps, the owner is solidarily liable with his driver, if the former, who was in the
1 month for every year of installment payments made, to pay the unpaid installments without interest.
vehicle, could have, by the use of the due diligence, prevented the misfortune. It is disputably presumed
that a driver was negligent, if he had been found guilty for reckless driving or violating traffic regulations
If the contract is cancelled the seller shall refund to the buyer the cash surrender value equivalent to fifty
at least twice within the next preceding two months (NCC, Art. 2184)
percent (50%) of the total payments made, and after 5 years of installments, an additional 5% every year
but not to exceed ninety percent (90%) of the total payments made.
CAR OWNER NOT PRESENT IN THE VEHICLE

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- If the car owner is not present in the vehicle and the driver was negligent, the injured party may still sue
said owner under Article 20180 Par. 5 NCC for imputed liability.

PRINCIPLE OF VICARIOUS LIABILITY OR LAW ON IMPUTED NEGLIGENCE

- The obligation imposed by Article 2176 of the NCC for quasi-delicts is demandable not only for one’s
own acts or omissions, but also for those persons for whom one is responsible.

LIABILITY OF THE STATE

1. PUBLIC/GOVERNMENTAL - Where the State is liable only for the tortious acts of its special agents.
The state has voluntarily assumed liability for acts done through special agents.

SPECIAL AGENT is one who receives a definite and fixed order or commission, FOREIGN to the
exercise of the duties of his office.

2. PRIVATE/NON GOVERNMENTAL - When the state is engaged in private business or enterprise, it

becomes liable as an ordinary employer.

LIABILITY OF THE HEADS AND TEACHERS OF THE OF ESTABLISHMENTS OF ART AND TRADES

GR: Where the school is academic rather than technical or vocational in nature, responsibilty for the tort
committed by the student will attach to the teacher in charge of such student.
XPN: In the case of establishments of arts and trades, it is the head thereof, and only he, who shall be
held liable as an exception to the general rule

LIABILITY FOR DAMAGES CAUSED BY THE ANIMALS

GR: The possessor or whoever makes use of the animal is liable independent of fault.
XPN: When the damage is caused by force majeure or by the person who suffered the damage.