1

PRINCIPLE OF NATIONALITY -

ARTICLE 15. Laws relating to family rights and duties, or to the status, condition and legal capacity
of persons are binding upon citizens of the Philippines, even though living abroad. (9a)

ARTICLE 16. Real property as well as personal property is subject to the law of the country where
it is situated.
However, intestate and testamentary successions, both with respect to the order of succession
and to the amount of successional rights and to the intrinsic validity of testamentary provisions,
shall be regulated by the national law of the person whose succession is under consideration,
whatever may be the nature of the property and regardless of the country wherein said property
may be found. (10a)

ARTICLE 17. The forms and solemnities of contracts, wills, and other public instruments shall be
governed by the laws of the country in which they are executed.
When the acts referred to are executed before the diplomatic or consular officials of the Republic
of the Philippines in a foreign country, the solemnities established by Philippine laws shall be
observed in their execution.
Prohibitive laws concerning persons, their acts or property, and those which have for their object
public order, public policy and good customs shall not be rendered ineffective by laws or
judgments promulgated, or by determinations or conventions agreed upon in a foreign country.
(11a)

 LEX LOCI CELEBRATIONIS/LEX LOCI CONTRACTUS

 It is the law of the place where contracts, will and other public instruments ar4 executed
and governs their “forms and solemnities” pursuant to 2nd par. Of Art. 17
 DOCTRINE OF PROCESSUAL PRESUMPTION - allows the court of the forum to presume that
the foreign law applicable to the case is the same as the local law of or domestic law.

ACTIONABLE ACTS
Human Relations (n)
ARTICLE 19. Every person must, in the exercise of his rights and in the performance of his duties,
act with justice, give everyone his due, and observe honesty and good faith.
ARTICLE 20. Every person who, contrary to law, wilfully or negligently causes damage to another,
shall indemnify the latter for the same.
ARTICLE 21. Any person who wilfully causes loss or injury to another in a manner that is contrary
to morals, good customs or public policy shall compensate the latter for the damage.
 THE PRINCIPLE OF RIGHT OF FIRST REFUSAL IS NOT FOUNDED ON CONTRACTS BUT ON
QUASI-DELICTUAL RELATIONSHIP COVERED BY HUMAN RELATIONS AND UNJUST
ENRICHMENT. UNDER ART. 19 WHICH STATES, Every person must, in the exercise of his rights
and in the performance of his duties, act with justice, give everyone his due, and observe
honesty and good faith.
 The proper action is not rescission of sale but it is an action for damages in violation of the
tortious act.
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Right to privacy

ARTICLE 26. Every person shall respect the dignity, personality, privacy and peace of mind of his
neighbors and other persons. The following and similar acts, though they may not constitute a
criminal offense, shall produce a cause of action for damages, prevention and other relief:

(1) Prying into the privacy of another’s residence;

(2) Meddling with or disturbing the private life or family relations of another; dumrrI
(3) Intriguing to cause another to be alienated from his friends;
(4) Vexing or humiliating another on account of his religious beliefs, lowly station in life, place of
birth, physical defect, or other personal condition.

JURIDICAL CAPACITY V. CAPACITY TO ACT

ARTICLE 37. Juridical capacity, which is the fitness to be the subject of legal relations, is inherent
in every natural person and is lost only through death. Capacity to act, which is the power to do
acts with legal effect, is acquired and may be lost. (n)

ARTICLE 38. Minority, insanity or imbecility, the state of being a deaf-mute, prodigality and civil
interdiction are mere restrictions on capacity to act, and do not exempt the incapacitated person
from certain obligations, as when the latter arise from his acts or from property relations, such as
easements. (32a)

ARTICLE 39. The following circumstances, among others, modify or limit capacity to act: age,
insanity, imbecility, the state of being a deaf-mute, penalty, prodigality, family relations, alienage,
absence, insolvency and trusteeship. The consequences of these circumstances are governed in
this Code, other codes, the Rules of Court, and in special laws. Capacity to act is not limited on
account of religious belief or political opinion.
A married woman, twenty-one years of age or over, is qualified for all acts of civil life, except in
cases specified by law. (n)

JURIDICAL CAPACITY is the fitness to be the subject of legal relations, it is inherent in every
natural person and is lost upon death. It passive. It exist even without the capacity to act.

CAPACITY TO ACT is the power to the acts with legal effect. It is merely acquired and may be
lost even before death. It is active. It cannot exist without juridical capacity.

WHEN IS THE CHILD CONSIDERED BORN?

ARTICLE 41. For civil purposes, the foetus is considered born if it is alive at the time it is
completely delivered from the mother’s womb. However, if the foetus had an intra-uterine life of
less than seven months, it is not deemed born if it dies within twenty-four hours after its
complete delivery from the maternal womb. (30a)
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ARTICLE 42. Civil personality is extinguished by death.

The effect of death upon the rights and obligations of the deceased is determined by law, by
contract and by will. (32a)

ARTICLE 43. If there is a doubt, as between two or more persons who are called to succeed each
other, as to which of them died first, whoever alleges the death of one prior to the other, shall
prove the same; in the absence of proof, it is presumed that they died at the same time and there
shall be no transmission of rights from one to the other. (33)

PD 603 SEC. 5

Art. 5. Commencement of Civil Personality. – The civil personality of the child shall commence
from the time of his conception, for all purposes favorable to him, subject to the requirements of
Article 41 of the Civil Code.

SEC. 3 (JJ) RULE 131

(jj) That except for purposes of succession, when two persons perish in the same calamity, such
as wreck, battle, or conflagration, and it is not shown who died first, and there are no particular
circumstances from which it can be inferred, the survivorship is determined from the
probabilities resulting from the strength and the age of the sexes, according to the following
rules:
1. If both were under the age of fifteen years, the older is deemed to have survived;
2. If both were above the age sixty, the younger is deemed to have survived;
3. If one is under fifteen and the other above sixty, the former is deemed to have survived;
4. If both be over fifteen and under sixty, and the sex be different, the male is deemed to have
survived, if the sex be the same, the older;
5. If one be under fifteen or over sixty, and the other between those ages, the latter is deemed to
have survived.

 DONATION IS VALID. According to Sec. 5 PD 603, the civil personality of the child shall
commence from the moment of conception for all purposes favorable to him, subject to the
requirement of Art. 41 of the Civil Code
 For Civil purposes, CHILD IS CONSIDERED BORN if it is completely delivered from the
mother’s womb with an intra-uterine life of 7 months provided it is alive for 24 hours after
complete delivery.
 According to Art. 43 of the Civil Code, IN THE ABSENCE OF PROOF, WHEN 2 OR MORE
PERSONS WHO ARE TO SUCCEED TO EACH OTHER, THEY ARE PRESUMED TO HAVE DIED AT
THE SAME TIME AND THERE WILL BE NO TRANSMISSION OF RIGHTS TO ONE ANOTHER.
 There must be proof who died first in order for this to apply Art. 43.
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For Purposes of Succession death deemed to occur to take place:

1. Death as a fact deemed to occur when it actually take place

2. Death is presumed to take place in instances mentioned in Art. 390 - After the absence of 7
years and his whereabouts is unknown whether he is alive or not shall be presumed dead for all
purposes except succession.
3. He shall be presumed dead, after the lapse of 10 years, for purposes of opening his succession
4. Art. 391. The following shall be presumed dead for all purposes, including the division of the
estate among the heirs:
(1) A person on board a vessel lost during a sea voyage, or an aeroplane which is missing, who
has not been heard of for four years since the loss of the vessel or aeroplane;
(2) A person in the armed forces who has taken part in war, and has been missing for four years;
(3) A person who has been in danger of death under other circumstances and his existence has
not been known for four years. (n)

Absolute Community of Property

Definition
The community property consists of all the property owned by the spouses at the time of the
celebration of the marriage, and those either one or both of them acquired during the marriage.
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There is a presumption provided in the Family Code that properties acquired during the marriage
belong to the community, unless it is proved that it is one of those excluded therefrom.
[Tolentino]

Governing law
Art. 80, FC. In absence of a contrary stipulation in a marriage settlement, the property relations of
the spouses shall be governed by Philippine laws, regardless of the place of the celebration of the
marriage and their residence.

By the Nationality Rule [Art. 15, CC], the rule that Absolute Community Property (ACP) is the
default mode of property relations absent any marriage settlement applies to all Filipinos,
regardless of the place of the marriage and their residence. [N.B.]

Exceptions
1. Where both spouses are aliens
2. With respect to the extrinsic validity of contracts affecting property not situated in the
Philippines and executed in the country where the property is located
3. With respect to the extrinsic validity of contracts entered into in the Philippines but affecting
property situated in a foreign country whose laws require different formalities for its extrinsic
validity [Art. 80, FC]

If marriage does not take place Art. 81, FC. Everything stipulated in the settlements or contracts
referred to in the preceding articles in consideration of a future marriage, including donations
between the prospective spouses made therein, shall be rendered void if the marriage does not
take place. However, stipulations that do not depend upon the celebration of the marriages shall
be valid.

Waiver Not Allowed

General Rule: No waiver of rights, shares and effects of the absolute community of property
during the marriage can be made

Exception: In case of judicial separation of property. When the waiver takes place upon a judicial
separation of property, or after the marriage has been dissolved or annulled, the same shall
appear in a public instrument and shall be recorded as provided in Article 77.

The creditors of the spouse who made such waiver may petition the court to rescind the waiver
to the extent of the amount sufficient to cover the amount of their credits. [Art. 89, FC.]

Provisions on Co-ownership Apply

The provisions on co-ownership shall apply to the absolute community of property between the
spouses in all matters not provided for in this Chapter. [Art. 90, FC]

N.B. The creditors of the spouse who made such waiver may petition the court to rescind
the waiver to the extent of the amount sufficient to cover the amount of their credits.
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Conjugal Partnership of Gains

This property regime was formerly the default regime under the CC.

In this regime, the spouses retain ownership of their separate property. However, the spouses
also place in a common fund the proceeds, products, fruits and income of their separate property
and those acquired by either or both spouses through their efforts or by chance.

The presumption applies that all properties acquired during the marriage belong to the CPG.
There are 3 distinct patrimonies in this system, the husband’s capital property, the
wife’s paraphernal property, and the conjugal property.

Art. 201. The following shall be excluded from the community:

(1) Property acquired by gratuitous title by either spouse, when it is provided by the donor or
testator that it shall not become a part of the community;

(2) Property inherited by either husband or wife through the death of a child by a former
marriage, there being brothers or sisters of the full blood of the deceased child;

(3) A portion of the property of either spouse equivalent to the presumptive legitime of the
children by a former marriage;

(4) Personal belongings of either spouse.

However, all the fruits and income of the foregoing classes of property shall be included in the
community.

SECTION 3. - Conjugal Partnership Property

Art. 156. Whenever an amount or credit payable in a certain number of years belongs to one of
the spouses, the sums which may be collected by installments due during the marriage shall not
pertain to the conjugal partnership, but shall be considered capital of the husband or of the wife,
as the credit may belong to one or the other spouse. (1402)

EVOLUTION OF JUDICIAL RECOGNITION OF FOREIGN DIVORCE BASED ART. 26 OF THE FC

(MEMORIZE)

The rules on divorced prevailing in this jurisdiction can be summed as follows:

First, Philippine divorce do not provide for ABSOLUTE DIVORCE, hence the court cannot grant the
same.

Second, consistent with Articles 15 and 17 of the Civil Code, the marital bonds between 2 Filipino
Citizens cannot be dissolved even by absolute divorced obtained abroad.
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Third, absolute divorced obtained abroad by couples, who are both aliens, may be recognized in
the Philippines, it is consistent with their respective national laws; and

Fourth, in mixed marriages involving a Filipino Citizen and an alien, the former is allowed to
contract a subsequent marriage in case the absolute divorce is validly obtained abroad by an
alien spouse capacitating him/her to marry.

The fourth rule is what the Supreme Court en banc, has extended. Pursuant to the landmark case
of Republic v. Manalo, foreign divorce decrees obtained to nullify marriages between a Filipino
and an alien may ALREADY BE RECOGNIZED IN THIS JURISDICTION, REGARDLESS WHO BETWEEN
THE SPOUSES INITIATED THE DIVORCE. Provided, that the party petitioning for the recognition of
foreign divorce decree - presumably the Filipino Citizen - must prove the divorce as a matter of
fact and demonstrate its conformity to the foreign law allowing it.

DRUG ADDICTION MAY BE A GROUND FOR DECLARATION OF NULLITY OF MARRIAGE,

ANNULMENT OF MARRIAGE AND LEGAL SEPARATION

A. FOR DECLARATION OF NULLITY OF MARRIAGE

a) The drug addiction must amount to Psychological Incapacity under Art. 36 of the FC
which amount to failure to perform marital obligation
b) It must be existing at the time of marriage (antecedent), incurable and grave.

B. ANNULMENT OF MARRIAGE AND LEGAL SEPARATION

The drug addiction must be concealed

A) It must exist at the time of marriage

B) There should be NO COHABITATION WITH FULL KNOWLEDGE OF THE DRUG ADDICTION
C) The case is filed within 5 years from knowledge of such addiction

C. LEGAL SEPARATION
a) There should be no condonation or consent
b) The action must be filed within 5 years from occurence of the cause
c) The addiction must arise during the marriage not at the time of marriage

ART. 45 PAR. 6 - Talks about incurable disease

ART. 46 PAR. 3 - Talks about concealment of disease

Status of CHILDREN UNDER THE FF:

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1. Under Art. 36 - Psychological Incapacity

2. Art. 53. Either of the former spouses may marry again after LEGITIMATE
compliance with the requirements of the immediately preceding
Article; otherwise, the subsequent marriage shall be null and void.
Art. 54. Children conceived or born before the judgment of annulment
or absolute nullity of the marriage under Article 36 has become final
and executory shall be considered legitimate. Children conceived or
born of the subsequent marriage under Article 53 shall likewise be
legitimate.
3. Voidable Marriages under Art. 45

4. Subsequent marriage due to absentee spouse

1. Art. 40 final judgment declaring the marriage void

2. Art. 44
Art. 44. If both spouses of the subsequent marriage acted in bad faith,
said marriage shall be void ab initio and all donations by reason of ILLEGITIMATE
marriage and testamentary dispositions made by one in favor of the
other are revoked by operation of law. (n)

3. Art. 35. Void Marriages

4. Art. 37 - Void Marriages due to incestuous marriage

5. Art. 38 - Void Marriages due to Public Policy

 A dead child can be legitimated...

Right of legitimate children

1. To bear the surname of the father and the mother in conformity with the provisions of
the Civil Code on Surnames
2. To receive support from their parents, their ascendants, and in proper cases, their
brothers and sisters, in conformity with the provisions of Support and
3. To be entitled to legitime and other successional rights granted to them by law

Under Art. 213 - TENDER AGE PRESUMPTION states that no child under 7 years old shall be
separated from the mother unless the court finds compelling reasons otherwise.

The rationale behind the rule is that, as a GENERAL RULE, it is recommended in order to avoid
a tragedy where a mother has seen her baby torn away from her. No man can sound the deep
sorrows of who is deprived of her child of tender age.
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The following instances constitute COMPELLING REASONS

1. NEGLECT
2. ABANDONMENT
3. UNEMPLOYMENT
4. IMMORALITY
5. HABITUAL DRUNKENESS
6. DRUG ADDICTION
7. MALTREATMENT OF CHILD
8. INSANITY
9. AFFLICTION OF COMMUNICABLE DISEASE

SUBSTITUTE PARENTAL AUTHORITY V. SPECIAL PARENTAL AUTHORITY

SUBSTITUTE PARENTAL AUTHORITY - the parents lose their parental authority in favor of the
substitute parental authority who acquires it to the exclusion of the parents. Substitute parental
authority displaces parental authority.

SPECIAL PARENTAL AUTHORITY - the parents or anyone exercising parental authority does not
lose parental authority, however, those who are charged with special parental authority
EXERCISE SUCH AUTHORITY ONLY during the time that the child is in their custody or supervision.
Special parental authority concurs with parental authority.

 CIVIL CODE PROHIBITS A HUSBAND AND WIFE FROM CONSTITUTING UNIVERSAL

PARTNERSHIP BUT NOT LIMITED PARTNERSHIP.

PROPERTY REGIMES

147 - COMMON LAW SPOUSES, VOID 148 - BIGAMOUS MARRIAGES / COMMON LAW
MARRIAGES; Art. 36 SPOUSES WITH LEGAL IMPEDIMENTS
SPECIAL CO-OWNERSHIP ORDINARY CO-OWNERSHIP
Effort in the care and maintenance of the ONLY property acquired by both parties
family and household, are regarded as through their actual joint contribution of
contributions to the acquisitions of common money, property or industry shall be owned by
property by one who has no salary, income or them in common in proportion to their
industry respective contribution.

The married one’s share shall accrue to the

absolute community property or conjugal
partnership of gains existing in such valid
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marriage
If actual contribution of the party is NOT Actual contribution is required in this
proved, there will be NO co-ownership and NO provision.
presumption of equal shares

PSYCHOLOGICAL INCAPACITY
Art. 36. A marriage contracted by any party who, at the time of the celebration, was
psychologically incapacitated to comply with the essential marital obligations of marriage, shall
likewise be void even if such incapacity becomes manifest only after its solemnization. (As
amended by Executive Order 227)

THIS IS THE DEFAULT RULE NOW.

Irrespective of WHEN THE MARRIAGE TOOK PLACE, OTHER THAN FOR PURPOSES OF
REMARRIAGE, NO JUDICIAL ACTION IS NECESSARY TO DECLARE MARRIAGE ABSOLUTE NULLITY.

 Generally, in cases under void marriages - declaration of nullity of marriage IS NOT

NECESSARY, EXCEPT:
 Purpose of remarriage
 Determination of Heirship
 Legitimacy or illegitimacy
 Settlement of estate
 Dissolution of property
 Criminal cases for that matter

 The DECREE OF NULLITY OF MARRIAGE BE ISSUED ONLY AFTER THE LIQUIDATION OF,
PARTITION, AND DISTRIBUTION OF PROPERTIES - DOES NOT APPLY TO DECLARATION OF
NULLITY OF MARRIAGE UNDER ART. 36 OF THE FC. THE RULE APPLIES ONLY IF THERE IS
SECOND MARRIAGE WHICH IS VOID BECAUSE OF NON COMPLIANCE UNDER ART. 40 OF THE
SAME CODE. - NO PROPERTY REGIME TO RESOLVE...
 REVERSE ACCESSION - where the building is considered principal and the land is an
accessory. If on the other hand, the value of the land is more than the value of the building,
ordinary rule of accession applies where the land is the principal and the building is the
accessory. REVERSE ACCESSION IS APPLICABLE ONLY IN CONJUGAL PARTNERSHIP OF GAIN
UNDER THE CIVIL CODE AND FC.
 TERMINABLE MARRIAGES UNDER ART. 41 AND 42 PAGE 53
 READ PAGE 54 SUMMATION - ART. 43 OF THE FC - ABSENTEE SPOUSE
 ART. 26 - MARRIAGE SOLEMNIZED ABROAD / DIVORCE OBTAINED ABROAD
 TERMINABLE MARRIAGES UNDER ART. 41 AND 42 PAGE 53
 ART. 168 - PAGE 60 - PATERNITY AND FILIATION
 PAGE 66 ART. 256 - RETROACTIVE EFFECT IN RELATION TO ART. 144 AND 147
 ADOPTION PAGE 67-72 - RA 8552 - DOMESTIC ADOPTION LAW AND INTERCOUNRY
ADOPTION
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SUCCESSION

Purpose of giving effect to testamentary disposition, the importance between heirs and legatees
and devisees are as follows:

1. In case there is PRETERITION - if one or some or all of the compulsory heirs in the direct line
had been totally omitted in the testator’s will THE INSTITUTION OF HEIR SHALL BE ANNULLED.
However, the legatee or devisee shall be valid so long as they are not excessive or inofficious
2. In case there is an IMPERFECT OF INVALID DISINHERITANCE, the institution of heirs is annulled
to the extent of the impairment of the legitime. However, the legatee and devisee shall be valid
so long they are not excessive and inofficious.

In SIMPLE SUBSTITUTION, the testator designates one or more persons to substitute the original
heir or heirs in case of the latter dies before him or repudiate or should be incapacitated to
accept the the inheritance. In this kind of substitution, only one heir inherits.

In FIDEICOMMISARRY SUBSTITUTION, the testator institute a first heir(fiduciary) and charges

him to preserved and transmit the whole or part of the inheritance to the second heir. In this
kind of substitution, both the 1st and 2nd inherits.

DR. NIXON L. TREYES v. ANTONIO L. LARLAR, et al. G.R. No. 232579, 08 September 2020, EN
BANC (Caguioa, J.)

DOCTRINE OF THE CASE Subject to the required proof, without any need of prior judicial
determination, Larlar, et al., siblings of Rosie, by operation of law, are entitled to one-half of the
inheritance of the decedent. Thus, in filing their Complaint, they do not seek to have their right
as intestate heirs established, for the simple reason that it is the law that already establishes that
right. What they seek is the enforcement and protection of the right granted to them under
Article 1001 in relation to Article 777 of the Civil Code by asking for the nullification of the
Affidavits of Self-Adjudication that disregard and violate their right as intestate heirs. Unless
there is a pending special proceeding for the settlement of the decedent’s estate or for the
determination of heirship, the compulsory or intestate heirs may commence an ordinary civil
action to declare the nullity of a deed or instrument, and for recovery of property, or any other
action in the enforcement of their ownership rights acquired by virtue of succession, without the
necessity of a prior and separate judicial declaration of their status as such.

 INTRINSIC VALIDITY OF THE TESTAMENTARY PROVISIONS SHALL BE GOVERNED BY THE LAW

OF TESTATOR, WHOSE SUCCESSION IS UNDER CONSIDERATION - ART. 16

EXTRINSIC VALIDITY - (FORMAL) INTRINSIC VALIDITY

Law in force at the time of will was executed Law of decedent’s nationality at the time of his
(Art. 795) death
Place, Forms, Solemnities of the will was Aspect of the will governed by the national law
executed (Art. 17) of the decedent
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1. Order of Succession
2. Amount of Successional Rights
3. Intrinsic Validity of testamentary provision
4. Capacity to Succeed

Foreigner’s Will Filipino

1. PH law (Art. 816) 1. National Law
2. National Law (Art. 817) 2. Law of the place where it is executed
3. Law of the place where he resides
4. Law of the place where it is executed

FORMS OF WILL

FORMS OF WILLS
In General [Art. 804, CC]
1. The will must be in writing
2. It must be in a language or dialect known to the testator

ATTESTED OR NOTARIAL WILLS

Formal requirements for notarial wills
1. Subscribed at the end
2. Attestation clause
3. Marginal signatures
4. Page numbers
5. Acknowledged by a notary public
6. Additional requirements for handicapped testators
7. Subscribed by 3 or more witnesses in the presence of the testator and of one another

Note: Unlike in holographic wills, there is no requirement that an attested will should be
dated.

FORMAL REQUIREMENTS
Subscribed at the end of the will by:
SUBSCRIPTION a. Testator himself
b. Testator’s name written by a representative in his presence and under
his express direction
Attested and subscribed by 3 or more credible witnesses in the presence
of the testator and of one another [Art. 805, CC]

The attestation clause shall state the following [par. 3, Art. 805, CC]:
1. Number of pages;
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2. The fact that the testator or his representative under his express
ATTESTATION direction signed the will and every page in the presence of instrumental
CLAUSE witnesses
3. That the witnesses signed the will and all its pages in the presence of
the testator and of one another.

The signatures of the witnesses must be at the bottom of the attestation

clause [Cagro v. Cagro, G.R. No. L-5826 (1953)].

The notary public cannot be counted as an attesting witness [Cruz v.

Villasor, G.R. No. L-32213 (1973)].

Test of presence: Not whether they actually saw each other sign, but
whether they might have seen each other sign had they chosen to do so
considering their mental and physical condition and position with
relation to each other at the moment of inscription of eachsignature
[Jaboneta v. Gustilo, G.R. No. 1641 (1906)].

Effect of Omissions:
Omissions can be supplied by an examination of the will itself, without
the need of resorting to extrinsic evidence, will not be fatal and will not
prevent allowance of the will.
General rule: Testator or his representative shall write his name, and the
witnesses shall sign each and every page except the last page [Art. 805,
CC].
MARGINAL Exceptions:
SIGNATURES 1. When the will consists of only one page

2. When the will consists of only two pages, the first of which contains all
dispositions and is signed at the bottom by the testator and the
witnesses, and the second page contains only the attestation clause duly
signed at the bottom by the witnesses. [Abangan v. Abangan, G.R. No. L-
13431 (1919)]

3. The use of thumbprint was allowed [Matias v. Salud, G.R. No. L-

10751 (1958)]

4. The inadvertent failure of one witness to affix his signature to one

page of a testament, due to the simultaneous lifting of two pages in the
course of signing, is not per se sufficient to justify denial of
probate. [Icasiano v. Icasiano, G.R. No. L- 18979 (1964)]
All the pages of the will shall be numbered correlatively in letters placed
PAGE NUMBERS on the upper part of each page (i.e. Page One of Five Pages). [Art. 805,
 14

CC]
ACKNOWLEDGED BY The certification of acknowledgement need not be signed by the notary
A NOTARY PUBLIC in the presence of the testator and the witnesses. [Javellana v. Ledesma,
G.R. L-7179 (1955)]
ADDITIONAL 1. Deaf Mute [Art. 807, CC]
REQUIREMENT FOR a. Testator must personally read the will; or
HANDICAPPED b. Testator shall personally designate two persons to read the
TESTATOR contents and communicate it to him in some practicable manner.

2. Blind [Art. 808, CC]

a. The will shall be read to the testator twice – By one of the
subscribing witnesses and by the notary public acknowledging the
will.

b. A testator suffering from glaucoma may be considered as legally

blind [Garcia v. Vasquez, G.R. No. L-26615 (1970)]

Qualifications [Art. 820, CC]

1. Of sound mind
SUBSCRIBED BY 3 OR 2. Aged 18 years or over
MORE WITNESSES IN 3. Not blind, deaf or dumb
THE PRESENCE OF 4. Able to read and write
THE TESTATOR AND
OF ONE ANOTHER Disqualifications [Art. 821, CC]
1. Person not domiciled in the Philippines
2. Those who have been convicted of falsification, perjury, or false
testimony. Creditors may be witnesses [Art. 824, CC].

Supervening incompetency shall not prevent the allowance of the will

[Art. 822, CC].

 In representation, the legal heir must not only be a legal heir of the person he is
representing but also of the decedent from whom represented person is supposed to
inherit. - IN CASE OF ADOPTION, IT CANNOT BE REPRESENTED SINCE ADOPTION CREATES A
PERSONAL LEGAL RELATION ONLY BETWEEN THE ADOPTING PARENT AND THE ADOPTED
CHILD.
 DOCTRINE OF DEPENDENT RELATIVE REVOCATIO -(short facts: the 1st will was made by the
testator tore the will; she made a second will but was declared by the court void for
failure to comply with the formal requisites
 Under Art. 832 - “the revocation made in a subsequent will shall take effect, even if the
new will should become inoperative by reason of incapacity of the heirs, devisees or
legatees designated therein or by their renunciation.
 15

 In said doctrine “IS A RULE WHERE REVOCATION OF THE OLD WILL IS A SUSPENSIVE
CONDITION OR DEPENDS UPON THE EFFECTIVITY OF THE NEW DISPOSITION, AND IF THE
NEW WILL INTENDED AS SUBSTITUTE IS INOPERATIVE,THE ORIGINAL WILL REMAIN IN
FORCE
 THE REVOCATION OF THE ORIGINAL WILL WAS NOT THROUGH THE EXECUTION OF A
SUBSEQUENT WILL WITH REVOCATORY CLAUSE BUT THROUGH DESTRUCTION WITH INTENT
TO DO SO.
 Naguid v. Naguid - As GENERAL RULE, the will should be admitted in probate proceedings if
all the necessary requirements for the extrinsic validity have been met and the court should
not consider the intrinsic validity of the provisions of said will. However, the exception
arises when the will in effect contains only one testamentary disposition. In effect, entirely
disposing such to X since the legitimes are provided by law. Hence the trial court may
consider the intrinsic validity of the provisions of the will.

SURVIVING LC & SPOUSE (SS) ILC LP AND ILP

RELATIVES DESCENDANTS ASCENDANTS
LC ALONE 1/2
1 LC AND SS 1/2 1/4
2 OR MORE 1/4 EACH 1/4, SAME
LC, SS WITH 1 LC
1 LC AND 1 1/2 1/2 OF OF
ILC 1 LC
1 LC, SS, 1ILC 1/2 1/4 1/2 OF OF
1 LC
2 LC SS, LC 1/4 EACH 1/4 (Preferred 1/2 of 1 LC
over ILC) (may
suffer
reduction
due to
preferenc
e)
LP ALONE 1/2
LP, ILC 1/4 1/2
LP, SS 1/4 1/2
 16

LP, SS, ILC 1/8 1/4 1/2

ILC ALONE 1/2
ILC, SS 1/3 1/3
SS ALONE 1/2

Except:
Marriage in
articulo mortis
and testator
dies within 3
months fr.
Marriage

Ex to Ex

Living together
as H and W for
more than 5
years
ILO ALONE 1/2
ILP, SS 1/4 1/4

INTESTATE SHARE CHART

A) SPOUSE ALONE ALL F) SPOUSE - 1/2

LP - 1/2
B) SPOUSE - 1/2 G) SPOUSE - 1/2

1 LC - 1/2 ILP - 1/2

C) SPOUSE - SAME 1 LC H) SPOUSE - 1/2

2 OR MORE LC ILC - 1/2

D) SPOUSE - 1/4 I) SPOUSE - 1/4

2 OR MORE LC - 1 SHARE LP - 1/2

ILC - 1/2 SHARE OF LC EACH ILC - 1/4

E) SPOUSE - 1/4 J) Spouse - 1/2

1 LC - 1/2 Brother/Sisters - 1/2

 17

1 ILC - 1/4 Nephew/Nieces

NOT IN CODAL - By analogy apply Art. 100

RIGHT OF ACCRETION

Art. 1015. Accretion is a right by virtue of which, when two or more persons are called to the
same inheritance, devise or legacy, the part assigned to the one who renounces or cannot
receive his share, or who died before the testator, is added or incorporated to that of his co-
heirs, co-devisees, or co-legatees. (n)

Art. 1016. In order that the right of accretion may take place in a testamentary succession, it
shall be necessary:

(1) That two or more persons be called to the same inheritance, or to the same portion
thereof, pro indiviso; and

(2) That one of the persons thus called die before the testator, or renounce the inheritance, or
be incapacitated to receive it. (928a)

OBLIGATIONS AND CONTRACTS

CIVIL OBLIGATION - give a right of action to compel their performance

NATURAL OBLIGATION - not being based on positive law but on equity and natural law, do not
grant a right of action to enforce the performance, but after voluntary fulfillment by the obligor,
they authorize the retention of what has been delivered or rendered by reason thereof.

An example of this Art. 1424 of the NCC. According to this article, when a right to sue upon a civil
obligation has lapsed by extinctive prescription, the obligor who voluntary performs the contract
cannot recover what he has delivered or the value of the service he rendered.

1. IF THE DEBTOR PROMISE TO PAY AS SOON AS HE HAS MEANS TO PAY. Is valid. It is an

obligation subject to INDEFINITE PERIOD because the debtor binds himself to pay when his
means permits him to do so (Art. 1180). When the creditor knows that the debtor has means to
pay him, HE MUST FILE AN ACTION IN COURT TO FIX PERIOD AND WHEN THE DEFINITE PERIOD
AS SET BY THE COURT ARRIVES, THE OBLIGATION TO PAY BECOMES DEMANDABLE (Art. 1197)
 18

2. IF THE CREDITOR PROMISE TO PAY WHEN HE LIKES. IS NOT VALID. It is a suspensive condition
the fulfillment of which subject only to sole will of the debtor. Therefore, the condition is VOID.
3. WHEN THE DEBTOR PROMISE TO PAY WHEN HE BECOMES A LAWYER. IT IS VALID. IT IS A
SUSPENSIVE CONDITION WHICH IS NOT SUBJECT TO THE SOLE WILL OF DEBTOR BUT ALSO TO
OTHER FACTORS OUTSIDE THE DEBTOR’S CONTROL.
4. DEBTOR PROMISE TO PAY IF HIS SON, WHO IS SICK WITH CANCER, DOES NOT DIE WITHIN 1
YEAR. IT IS VALID. THE DEATH OF THE SON OF CANCER WITHIN 1 YEAR IS NEGATIVE
SUSPENSIVE CONDITION WITH REGARD TO HIS PAYMENT. THE OBLIGATION BECOMES
DEMANDABLE IF THE DEBTOR’S SON DOES NOT DIE WITHIN ONE YEAR.

COMPENSATION is a mode of extinguishing to the concurrent amount, the obligation of those

person who in their own right are reciprocally creditor and debtors of each other. It involves
balancing of 2 simultaneous obligations in order to extinguish them to the extent in which
amount of one is covered by the other.

PAYMENT means not only delivery of money but also performance of an obligation. In this case,
capacity to dispose of the thing paid and capacity to receive payment are required in debtor and
creditor, respectively. In COMPENSATION such is not necessary because the compensations
operates by law and not by the act of the parties. In PAYMENT, the performance must be
complete while in COMPENSATION, there may be partial extinguishment of an obligation.

 DEBTS WHICH ARE NOT SUSCEPTIBLE OF COMPENSATION

1. Debts arising from contracts of deposit

2. Debts arising from contract of commodatum
3. Claims of support due by gratuitous title
4. Obligations arising from criminal offense
5. Certain obligations in favor of the government such as taxes, duties and other
similar nature

 REQUSITIES OF FORTUITOUS EVENT

1. The event must be independent of human will

2. The event could not be foreseen, though foreseen is inevitable
3. The event must have rendered impossible for the debtor’s compliance in a proper
manner
4. The debtor must not be guilty of delay or negligence.

 VICARIOUS LIABILTY - BOTH PAGE 91

 IMPOSSOBLE AND ILLEGAL CONDITIONS IN A SIMPLE DONATION V. IMPOSSOBLE AND
ILLEGAL CONDITIONS ON ONEROUS DONATIONS
 IN IMPOSSOBLE AND ILLEGAL CONDITIONS in a Simple donation, the impossible and
illegal is considered not written and the donation remains valid. The condition or mode
 19

being an accessory disposition, its nullity does not affect the donation unless it clearly
appears the the donor would have not made the donation without the condition.
 In Onerous donation, it is actually governs the law on contracts. Impossible and illegal
condition shall annul the obligation which depends upon them. In this case, but the
donation and condition is void. Onerous donation is actually a contract of sale. A classic
example is that A donated the land in exchange of the car.

Creditor cannot compel the debtor to deliver a GENERIC THING (i.e. 21 inch 1983 TV set)
BECAUSE generic thing is designated merely by its class or genus without any particular
designation or physical segregation from others of the same class. AN ACTION FOR SPECIFIC
PERFORMANCE IS THEREFORE legally and physically impossible. The remedy of the creditor is ask
for 21 inch tv set which must be neither of superior or inferior quality additionally, he can also
ask for damages.

The case of refrigerator is different one. The court may compel the debtor to comply with the
obligation specifically, the reason is obvious. The obligation is DETERMINATE. UNDER THE NCC, IF
THE DEBTOR REFUSES OR UNABLE TO COMPLY WITH HIS OBLIGATION, ASSUMING THE
OBLIGATION IS TO GIVE, THE REMEDY OF THE CREDITOR IS TO BRING AN ACTION AGAINST THE
DEBTOR FOR SPECIFIC PERFORMANCE AND ADDITIONALLY HE CAN RECOVER DAMAGE.

HEIRS OF PEDESTRIAN AND PASSENGER MAY PROCEED AGAINST THE ER

UNDER THE REVISED PENAL CODE

The source of liability of the Driver and the ER in CULPA CRIMINAL, the liability of Driver is direct
while the ER is subsidiary. Diligence of good father of the family cannot be availed as a defense
by the ER because of the very nature of his obligation.

UNDER THE CIVIL CODE

The heirs of the pedestrian may go against the Driver and ER or against only ER. In this case, the
source of liability of Driver and his employer is quasi-delict (CULPA AQUILIANA) committed by the
driver. The liability of Driver and Employer is direct and primary. The ER of the Driver can relieve
themselves by proving due diligence of a good father of the family in the selection and
supervision of its drivers.

The heirs of passengers may proceed against Driver’s ER only. The source of obligation of Driver’s
ER is breach of contract of carriage with the passenger (CULPA CONTRACTUAL). His liability is
direct and primary. He can relieve himself of the liability by proving due diligence of the father of
the family. This because under the law on common carriers, we do not adhere to principle of
respondeat superior, we adhere to the principle that there is always an implied duty of the
 20

common carrier to carry the passenger safely to his place of destination. However, not available
as a defense he may do so to mitigate his liability.

A check, whether manager’s check or ordinary check, IS NOT LEGAL TENDER, and an offer of
check in payment is not valid tender of payment and may refused receipt by the creditors. Mere
delivery of checks does not discharge the obligation under a judgment. A check shall produce
payment only when they have been cashed or when the fault of the creditor, they may have
been impaired.

However, it is not necessary that the right of redemption be exercise by delivery of legal tender.
A check may be used for the exercise of right of redemption, the same being a right not an
obligation. The tender of check is sufficient to complete redemption prices.

Redemption within the period allowed by law is not a matter of intent but a question of payment
or valid tender redemption price within the said period. Whether the redemption is being made
under the ACT 3135 of general banking law, the mortgagor or assignee is required to tender
payment to make said redemption valid.

Moreover, Creditor’s refusal to was justified on the ground that the amount does not include
interest. In order to effect the redemption of the foreclosed property, the payment to the
purchaser must include the ff sums: a) bid price b) the interest of the bid price computed at 1%
per month and c) assessment or taxes, if any paid by the pruchaser, with same interest rate.

UNDER ART. 1293 - EXPROMISSION - when a third person takes the place of the original debtor
without its consent or against its will but with the consent of the creditors.

Stipulation pour autrui - Involves any stipulation in favor of a third person. Ex. Accident
insurance Policy - where you can file an action based on the contract of insurance although you
are not a party to the contract. Page 109
 NOT ALL AGGREEMENT AFFECTING LAND NEEDS TO BE IN WRITING TO ATTAIN
ENFORCEABILITY. THUS THE FF ARE NOT COVERED BY THE STATUTE OF FRAUDS:
1. Oral partition of real properties
2. Setting up of boundaries
3. An agreement creating a right of way
The reasons are simply because they are not amonng those enumerated by Art. 1403

UNENFORCEABLE VOIDABLE / ANNULABLE RESCISSIBLE (1381)

One cannot be enforced
unless ratified in the manner
provide by law
(1390)
A contract in which CONSENT
of one of the parties is
defective, either because of
WANT OF CAPACITY or
because it is VITIATED, but
which contract is VALID until
A contract that has caused
a particular damage to
one of the parties or to a
third person and which for
EQUITABLE REASONS
may be set aside even if
 21

JUDICIALLY set aside valid.

1. Unauthorized contracts – Voidable or annullable Contracts which are valid until

those entered into by one
who has no authority or legal
representation, or who has
acted beyond his powers [par.
1, Art. 1403, CC]
2. Those which did not comply
with the Statute of Frauds
[par. 2, Art. 1403, CC]
(a) An agreement that by its
terms is not to be performed
within a year from the making
thereof;
contracts are existent, valid rescinded. All essential
and binding, although they requisites of a contract exist
can be annulled because of but there is injury or damage
want of capacity or vitiated to one of the parties or to
consent of one of the parties. third persons – external or
[Tolentino] extrinsic defect consisting of
an economic damage or
Under Art. 1392. lesion. [Paras]
RATIFICATION extinguishes
the action to annul a voidable
contract.

(b) A special promise to

answer for the debt, default,
or miscarriage of another;

(c) An agreement made in

consideration of marriage,
other than a mutual promise
to marry;

(d) An agreement for the sale

of goods, chattels or things in
action, at a price not less than
five hundred pesos, unless the
buyer accept and receive part
of such goods and chattels, or
the evidences, or some of
them, of such things in action
or pay at the time some part
of the purchase money; but
when a sale is made by
auction and entry is made by
the auctioneer in his sales
book, at the time of the sale,
of the amount and kind of
property sold, terms of sale,
price, names of the
purchasers and person on
 22

whose account the sale is

made, it is a sufficient
memorandum;

(e) An agreement of the

leasing for a longer period
than one year, or for the sale
of real property or of an
interest therein;

3. Those where both parties

are incapable of
giving consent to a contract
[par. 3, Art.
1403, CC]

Who may institute action

forannulment
General Rule: Action for
annulment may be
instituted by all who are
thereby obliged
principally or subsidiarily.
Exceptions: (1) Persons
capable of giving
consent and (2) guilty parties
who have caused
the vitiation of consent cannot
allege the incapacity or want
of consent of those they
contracted with. [Art. 1397,
CC].
Requisites:
1. Plaintiff must have an
interest in the contract;
2. The victim and not the
party responsible for the vice
or defect must assert the
same
Exception: If a third person is
prejudiced in his rights with
respect to one of the
 23

contracting parties and can

show detriment which would
positively result to him from
the contract in which he has
no intervention. [Teves v.
People’s Homesite & Housing
Corp., G.R. No. L-21498
(1968)]

An action for annulment must Prescription period: must

be brought within 4 years:
1. In cases of I, V or undue
influence, fr the time defect of
the consent ceases
2. Mistake or Fraud fr. The
time of discovery
3. Incapacitated
person,minors, fr the time
guardianship ceases
commence within 4 years
Persons under guardianship
and absentee: period of 4
years shall not begin until the
termination of the former’s
incapacity or until the
domicile of other is unknown

Note:
 If one of the parties is in incapable of giving consent, THE CONTRACT IS VOIDBALE. The
Contract is valid, until annuled.
 If both of the parties are incapable of giving consent, THE CONTRACT IS UNENFORCEABLE.
The contract CANNOT BE ENFORCED UNTIL RATIFIED.
 A agreed to sell his property to B to evade attachment of the her property. THE CONTRACT
IS RESCSSIBLE BECAUSE IT IS IN FRAUD OF HER CREDITORS. The contract that has caused a
particular damage to one of the parties or to a third person and which for EQUITABLE
REASONS may be set aside even if valid.
 Statute of Frauds by virtue of which oral contracts are unenforceable by court action is
applicable only to those contracts which are executory (one yet to be performed not those
which have been consummated either totally or partially (Executed). THE REASON IS
OBVIOUS, THERE IS ALREADY RATIFICATION OF THE CONTRACT BECAUSE OF THE
ACCEPTANCE OF THE BENEFITS. AS MATTER OF FACT, THIS IS ALREADY EMBODIED IN THE
NCC. ACCORDING TO ART. 1405 OF THE SAID CODE, CONTRACTS INFRINGING THE STATUTE
OF FRAUDS ARE RATIFIED BY FAILURE TO OBJECT IN THE PRESENTATION OF ORAL EVIDENCE
TO PROVE THE SAME, OR BY ACCEPTANCE OF THE BENEFITS UNDER THEM.
 “According to art. 1406 of the CC, the parties may only avail themselves of the right
under Art. 1357, if the contract is enforceable under the statute of frauds. The contract
was taken out of the operations of the Statute of Frauds under the doctrine of part
performance. Under Art. 1357, parties may compel each other to observe form of
contract required by law.
 24

 Principle of mutuality of contract -Art. 1308. The contract must bind both contracting
parties; its validity or compliance cannot be left to the will of one of them. (1256a)
 Interference with Contractual Relations - Art. 1314. Any third person who induces another
to violate his contract shall be liable for damages to the other contracting party. (n)
 OPTION TO BUY AND THE RIGHT OF FIRST REFUSAL are both tortious act and the propery
remedy is Art. 19, an action for damages under QD
 CONSENSUAL CONTRACTS - are contracts that are perfected by mere consent of the parties.
REAL CONTRACTS - are contracts that are perfected from the delivery of an object of an
obligation. An example of real contracts are deposit, commodatum, mutuum (simple loan)
and pledge.
 Under Art. 1324 of the Civil Code, when the offeror has allowed the offeree a certain period
to accept, the offer may be withdrawn at anytime BEFORE ACCEPTANCE by communicating
such withdrawal, EXCEPT when the option is founded upon a consideration, as something
paid of promise. It is also supported by paragraph 1479 by the NCC, an acceptance of
unilateral promise for a thing price certain is binding upon the promisor if promise is
supported by a consideration distinct from the price.
 While as rule IN PARI DELICTO have no recourse against each other on the principle that THE
TRANSGRESSOR CANNOT PROFIT FROM HIS OWN WRONG DOINGS, such rule DOES NOT
APPLY TO VIOLATIONS OF SEC 118 OF THE PUBLIC LAND ACT. Because of the underlying
principle in the act to conserve the land which homesteader has acquired by virtue of
gratuitous grant from the government for himself and his family. In keeping up with the
policy, it has been held that the one who purchases a homestead within 5 year prohibitory
period can only recover the price which he has paid bu filing a claim against the estate of
deceased seller under the principle that no one will unjustly enrich himself at the expense of
another.
 ESTOPPEL - ELEMENTS OF LACHES
1. Conduct on the part of the defendant or one whom he claims, giving rise to a situation
pf which complaint seeks a remedy;
2. Delay in asserting the complainant’s rights, complainant having the knowledge or
notice of the defendant’s conduct and having been afforded an opportunity to institute
a suit;
3. Lack of knowledge on the part of the defendant that the complainant would assert a
right on which he bases his suit; and
4. Injury or prejudice to the defendant in the event the relief is accorded to the
complainant, or the suit is not held to be barred.
 Doctrine of Laches is based on equity and public policy. It is the failure or neglect, for an
unreasonable length of time, by exercising due diligence, could or should have been done
earlier. It is negligence or omission to assert a right within reasonable time.

TRUST

IMPLIED TRUST
 25

Art. 1453. When property is conveyed to a person in reliance upon his declared intention to hold
it for, or transfer it to another or the grantor, there is an implied trust in favor of the person
whose benefit is contemplated.

CONTRUCTIVE TRUST - is a form of implied trust created by equity to meet the demands of
justice. It arises against who fraud, by fraud, duress, or abuse of confidence, undue influence or
mistake or breach of fiduciary duty or wrongful disposition of another’s property, obtain or holds
a legal right to property which he is entitled to under the law.

FF. Example of constructive trust

Art. 1451. When land passes by succession to any person and he causes the legal title to be put
in the name of another, a trust is established by implication of law for the benefit of the true
owner.

Art. 1452. If two or more persons agree to purchase property and by common consent the legal
title is taken in the name of one of them for the benefit of all, a trust is created by force of law in
favor of the others in proportion to the interest of each.

Art. 1454. If an absolute conveyance of property is made in order to secure the performance of
an obligation of the grantor toward the grantee, a trust by virtue of law is established. If the
fulfillment of the obligation is offered by the grantor when it becomes due, he may demand the
reconveyance of the property to him.

Art. 1455. When any trustee, guardian or other person holding a fiduciary relationship uses trust
funds for the purchase of property and causes the conveyance to be made to him or to a third
person, a trust is established by operation of law in favor of the person to whom the funds
belong.

Art. 1456. If property is acquired through mistake or fraud, the person obtaining it is, by force of
law, considered a trustee of an implied trust for the benefit of the person from whom the
property comes.

Art. 1457. An implied trust may be proved by oral evidence.

NEGOTIORUM GESTIO

EXAMPLES OF “OBLIGATIONS WITHOUT AN AGREEMENT”

1. Solutio indebity
2. Negotiorum Gestio
3. Delicts
4. Quasi-delicts
5. All other obligations arising from law such as giving support to stranger, rendering help to a
sick/ill person.
 26

SOLUTION INDEBITI

Art. 2154. If something is received when there is no right to demand it, and it was unduly
delivered through mistake, the obligation to return it arises. (1895)

Art. 2159. Whoever in bad faith accepts an undue payment, shall pay legal interest if a sum of
money is involved, or shall be liable for fruits received or which should have been received if the
thing produces fruits.

He shall furthermore be answerable for any loss or impairment of the thing from any cause,
and for damages to the person who delivered the thing, until it is recovered. (1896a)

CONTRACT OF SALE CONTRACT TO SELL

Ownership is transferred to the buyer upon
delivery of the object to him
There is only one contract executed bet the
seller and the buyer
The buyer’s non payment of the price is a
negative resolutory condition
Ownership is retained by the seller until the
purchase price is fully paid and the delivery of
an object does not confer ownership to the
buyer
There are 2 contracts, first is the contract to
sell and second is the deed of sale which is
executed after full payment of the purchase
price
The buyer’s full payment of the price, is a
positive suspensive condition

CONDITIONAL SALE ABSOLUTE SALE

Vendor/Seller is granted to unilaterally rescind Is one where the title of the property is nor
the contract predicated upon fulfillment or reserved to the vendor/seller or the
non-fulfillment of an obligation. vendor/seller is not granted to rescind the
contract based on fulfillment or non fulfillment
of an obligation.
Is subject to the happening of event or
performance of a condition, such as payment
of full purchase price or any prestation, to give,
to do or not to do.
Contract to Sell is a specie of conditional sale. It sells the right to buy the property.

INTERRUPTION OF PRESCRIPTIVE PERIOD - that the full period of prescription commences to run
anew upon the cessation of the suspension.

IN TOLLING OF PRESCRIPTION OF ACTION - prescriptive period is merely tolled and continues to

run again, with only the balance of the remaining period available for the filing of an action.
 27

OPTION CONTRACT - is one granting a privilege to buy the property within the agreed time and
determined price. It must be supported by a consideration.
NOTE. If such is not supported by a consideration, a unilateral promise to buy or sell shall
not be binding to the promisor, for it is merely an AN OFFER TO SELL/BUY which may be
withdrawn anytime.

EARNEST MONEY - is part of the purchase price and proof of perfection of the contract.

MACEDA LAW RA 6552 RECTO LAW - ART. 1484

Applicable to immovable property such as Applicable to movable property (personal
residential property and condos payable by property) paid by installment and limiting the
installment right of the seller in case of default by the
buyer to one of the 3 remedies
MOST IMPORTANT FEATURES
1. After having payment of installment for 2 1. Exact fulfillment of an obligation, should
years, the buyer is entitled to a mandatory vendee failed to pay
grace period of 1 month for every year of 2. Cancel the sale if 2 or more installments
installment without interest have not been paid
3. Foreclose the chattel mortgage on the things
If the contract is canceled, the seller shall sold, also in default of 2 or more installments
refund the buyer the cash surrender value with no further actions against the purchaser.
equivalent to 50% of the total payment made
and after 5 years of installment an additional
5% every year but shall not exceed 90% of total
payment made.
2. In case of less than 2 years payment made,
the seller shall give the buyer a grace period of
not less than 60 days.

If the buyer fails to pay due the expiration of

the grace period, the seller may cancel the
contract after 30 days from receipt of the buyer
of notice of cancellation or demand of
rescission by notarial act.
REMEDY OF THE SELLER
1. To compel specific performance by filing an  Remedy here is alternative NOT
action against the buyer for the agreed price cumulative, that the exercise of one, bars
2. File a rescission to the court or rescind the the exercise of the other
contract by notarial act  If the seller opted to file a collection
3. Recover damages for breach of contract claims (exact fulfillment), then later on the
(applicable to both 1 and 2) was able to secure judgment, however
there is deficiency..., the prohibition of the
 28

said law on foreclosure is not violated.

‘Since the thing was sole in a EXECUTION
SALE AND NOT ON FORECLOSURE SALE.

In contract of sale, THE REDEMPTION PERIOD - if the period is express in the contract, the
redemption period is 10 years; if no period stipulated, 4 years from expiration of the time
within which to redeem

EQUITABLE REDEPTION

Art. 1601. Conventional redemption shall take place when the vendor reserves the right to
repurchase the thing sold, with the obligation to comply with the provisions of Article 1616 and
other stipulations which may have been agreed upon. (1507)

Art. 1602. The contract shall be presumed to be an equitable mortgage, in any of the following
cases:

(1) When the price of a sale with right to repurchase is unusually inadequate;

(2) When the vendor remains in possession as lessee or otherwise;

(3) When 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) When the purchaser retains for himself a part of the purchase price;

(5) When the vendor binds himself to pay the taxes on the thing sold;

(6) In any other case where it may be fairly inferred that the real intention of the parties is that
the transaction shall secure the payment of a debt or the performance of any other obligation.

In any of the foregoing cases, any money, fruits, or other benefit to be received by the vendee as
rent or otherwise shall be considered as interest which shall be subject to the usury laws. (n)

Art. 1604. The provisions of Article 1602 shall also apply to a contract purporting to be an
absolute sale. (n)

RES PERIT DOMINO - the thing perishes with the owner

Double Sales - if the thing sold is under Conditional Sale then the Seller sold the same property to
a different person... THERE IS NO DOUBLE SALE! LIABLE TO ART. 19, DAMAGES

BUYERS IN GOOD FAITH -

 29

a possessor in good faith - one who is not aware that there exist in his title any flaw which
invalidates them. Under the Torrens System, a buyer of registered lands is not required by law to
inquire further than what the Torrens certificate indicates. If a person proceeds to buy it relying
on the title, that person is considered buyer in good faith

GR: the power to rescind an obligation must be done judicially and cannot exercise solely on
party’s own judgment that the other has committed a breach of the obligation. However, this not
applicable in CONTRACT TO SELL. IN CONTRACT TO SELL, THERE IS RESERVATION OF OWNERSHIP
ON THE PART OF THE SELLER AND OBLIGATION TO CONVEY TITLE WILL ONLY ARISE UPON FULL
PAYMENT OF THE PURCHASE PRICE.

ART. 1592 V. MACEDA LAW

ART. 1592 is applicable in cases of contract of sale immovable property while ML applicable on
contract to sell or payment by way of installment. In Art. 1592, rescission may be made by
judicially or by notarial act. ML can be rescinded by notarial act only.

Art. 1592. In the sale of immovable property, even though it may have been stipulated that upon
failure to pay the price at the time agreed upon the rescission of the contract shall of right take
place, the vendee may pay, even after the expiration of the period, as long as no demand for
rescission of the contract has been made upon him either judicially or by a notarial act. After the
demand, the court may not grant him a new term. (1504a)

TACITA RECONDUCCION

Art. 1670. If at the end of the contract the lessee should continue enjoying the thing leased for
fifteen 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. (1566a)

Art. 1678. If the lessee makes, in good faith, useful improvements which are suitable to the use
for which the lease is intended, without altering the form or substance of the property leased,
the lessor upon the termination of the lease shall pay the lessee one-half of the value of the
improvements at that time. Should the lessor refuse to reimburse said amount, the lessee may
remove the improvements, even though the principal thing may suffer damage thereby. He shall
not, however, cause any more impairment upon the property leased than is necessary.

With regard to ornamental expenses, the lessee shall not be entitled to any reimbursement, but
he may remove the ornamental objects, provided no damage is caused to the principal thing,
and the lessor does not choose to retain them by paying their value at the time the lease is
extinguished. (n)
 30

Art. 1680. The lessee shall have no right to a reduction of the rent on account of the sterility of
the land leased, or by reason of the loss of fruits due to ordinary fortuitous events; but he shall
have such right in case of the loss of more than one-half of the fruits through extraordinary and
unforeseen fortuitous events, save always when there is a specific stipulation to the contrary.

Extraordinary fortuitous events are understood to be: fire, war, pestilence, unusual flood,
locusts, earthquake, or others which are uncommon, and which the contracting parties could not
have reasonably foreseen. (1575)

UNDER THE TOPIC OF AGENCY

PLEDGE CREATED BY OPERATIONS OF LAW
Art. 1912. The principal must advance to the agent, should the latter so request, the sums
necessary for the execution of the agency.

Should the agent have advanced them, the principal must reimburse him therefor, even if the
business or undertaking was not successful, provided the agent is free from all fault. The
reimbursement shall include interest on the sums advanced, from the day on which the advance
was made. (1728)

Art. 1913. The principal must also indemnify the agent for all the damages which the execution
of the agency may have caused the latter, without fault or negligence on his part. (1729)

Art. 1914. The agent may retain in pledge the things which are the object of the agency until the
principal effects the reimbursement and pays the indemnity set forth in the two preceding
articles. (1730)

AGENT MAY APPOINT A SUB-AGENT

Art. 1892. The agent may appoint a substitute if the principal has not prohibited him from doing
so; but he shall be responsible for the acts of the substitute:

(1) When he was not given the power to appoint one;

(2) When he was given such power, but without designating the person, and the person
appointed was notoriously incompetent or insolvent.

IT IS A CONTRACT OF AGENCY due to the ff indicia:

1. The price is fixed by the manufacturer with mark up constituting the commission;
2. The manufacturers reacquires the unsold units at exactly the same price; and
3. The warranty for the units was born by the manufacturer.

Art. 1877. An agency couched in general terms comprises only acts of administration, even if the
principal should state that he withholds no power or that the agent may execute such acts as he
 31

may consider appropriate, or even though the agency should authorize a general and unlimited
management. (n)

Art. 1927. An agency cannot be revoked if a bilateral contract depends upon it, or if it is the
means of fulfilling an obligation already contracted, or if a partner is appointed manager of a
partnership in the contract of partnership and his removal from the management is unjustifiable.
(n)

Art. 1930. The agency shall remain in full force and effect even after the death of the principal, if
it has been constituted in the common interest of the latter and of the agent, or in the interest of
a third person who has accepted the stipulation in his favor. (n)

LOAN

Art. 1933. By the contract of loan, one of the parties delivers to another, either something not
consumable so that the latter may use the same for a certain time and return it, in which case
the contract is called a commodatum; or money or other consumable thing, upon the condition
that the same amount of the same kind and quality shall be paid, in which case the contract is
simply called a loan or mutuum.

Commodatum is essentially gratuitous.

Simple loan may be gratuitous or with a stipulation to pay interest.

In commodatum the bailor retains the ownership of the thing loaned, while in simple loan,
ownership passes to the borrower. (1740a)

Two Types of Contracts of Loan

1. Commodatum – a contract where one party delivers to another something not consumable so
that the latter may use the
same for a certain time and return it. [Art. 1933, CC]

2. Mutuum (Simple Loan) – a contract where one party delivers to another, money or other
consumable thing, upon the condition that the same amount of the
same kind and quality shall be paid. [Art. 1933, CC]

Note: A contract of commodatum is a gratuitous real contract, and is purely personal in nature. It
does not require compensation for its use, and is perfected upon delivery by the bailor. However
it demands that the same exact thing be returned, and that generally the use of the thing is only
limited to the bailor, with exceptions in Art. 1939 (2). A contract of loan is a real contract,
perfected upon delivery of a loan of money or any fungible thing, with the borrower acquiring
the ownership of the money/fungible thing with the corresponding obligation to pay the creditor
an equal amount of the same kind and quality (Art. 1933, cf. Art.1953, CC).
 32
COMMODATUM
The creditor/bailor delivers to the
debtor/bailee consumable of non-consumable
so that the latter may use the same for a
certain time and must return the same thing
The subject matter of commodatum may be a
movable or immovable thing which is ordinarily
non-consumable (if the thing borrowed is
consumable, it is merely for display or
exhibition)
It is essentially gratuitous
There is no transmission of ownership of thing
borrowed
The same thing borrowed is required to be
returned
DIFFERENCE BETWEEN GUARANTY AND SURETY
GUARANTY
It is a contract by virtue of which a person
called the guarantor, binds himself to the
creditor to fulfilll the obligation of the principal
debtor in case the latter should fail to do so
The liability of the guarantor is subsidiary
The guarantor assumes the liability by virtues
of an independent agreement to pay the
obligation if the principal debtor fails to do so
The liability here is collateral
The guarantor is an insurer of the solvency of
the principal debtor
A guarantor can avail himself the BENEFIT OF
EXCUSSION and division, if the creditor, if the
creditor proceeds against him for payment of
the obligation
EXCUSSION - The benefit of excussion in favor of the guarantor refers to the right by which such
guarantor cannot be compelled to pay the creditor unless the latter has exhausted all the
property of the principal debtor and resorted all the legal remedies against such debtor.
EXCUSSION can be availed of when:
MUTUUM
The creditor delivers to the debtor money or
consumable thing upon the condition that the
same amount of the same kind and quality is
paid
Subject matter of mutuum, is either money or
consumable
It may be gratuitous or with a stipulation to pay
interest
Borrower acquires ownership to the thing
loaned
Borrower discharges his obligation not by
returning the identical thing loaned, but paying
equivalent in kind, quality and quantity
SURETY
Is a contract by virtue of which a person binds
himself solidarity with the principal debtor to
fulfill the obligation
The liability here is primary
The surety assumes the liability as a regular
party to the contract
Liability is original
Surety is the insurer of the debt
Surety cannot
 33

Art. 2060. In order that the guarantor may make use of the benefit of exclusion, he must set it up
against the creditor upon the latter's demand for payment from him, and point out to the
creditor available property of the debtor within Philippine territory, sufficient to cover the
amount of the debt. (1832)

It cannot be availed of when:

Art. 2059. The excussion shall not take place:

(1) If the guarantor has expressly renounced it;

(2) If he has bound himself solidarily with the debtor;

(3) In case of insolvency of the debtor;

(4) When he has absconded, or cannot be sued within the Philippines unless he has left a
manager or representative;

(5) If it may be presumed that an execution on the property of the principal debtor would not
result in the satisfaction of the obligation. (1831a)

Art. 2084. A judicial bondsman cannot demand the exhaustion of the property of the principal
debtor.

Definition of Quasi-Delict (also known as culpa aquiliana)

Art. 2176, CC. 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, is called a quasi-delict and is governed by the
provisions of this Chapter.

The defense of diligence in the selection and supervision of the employee under 2180 is available
only to those primarily thereunder, but not to those subsidiarily liable under 103 of the RPC.
Abuse of Right; elements
Art. 19, CC. Every person must, in the exercise of his rights and in the performance
of his duties, act with justice, give everyone his due, and observe honesty and good faith

Elements [Albenson v. CA, G.R. No. 88694 (1993)]:

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.
Test of abuse of rights
 34

No hard and fast rule; depends on the circumstances of each case. The exercise of a right must
be in accordance with the purpose for which it was established, and must not be excessive or
unduly harsh; there must be no intention to injure another.

Generally, the exercise of any right must be in accordance with the purpose for which it was
established. It must not be excessive or unduly harsh; there must be no intention to injure
another.

There is abuse of right when:

1. The right is exercised for the only purpose of prejudicing or injuring another
2. The objective of the act is illegitimate
3. There is an absence of good faith

Effects of the application of Art. 19:

a. “A right, though by itself legal because recognized or granted by law as such, may
nevertheless become the source of some illegality” [Globe Mackay v. CA, G.R. No. 81262 (1989)];
b. It precludes the defense of damnum absque injuria. Damnum absque injuria does not apply
when there is an abuse of a person’s right [Amonoy v. Gutierrez, G.R. No. 140420 (2001)].

Persons Exercising Parental Authority Parental Authority

It consists, to a large extent, of the instruction and supervision of the child. May be exercised by:
1. Parents/Adoptive parents
2. Court-appointed guardians
3. Substitute Parental Authorities
a. Grandparents
b. Oldest qualified sibling over 21 years
c. Child’s actual custodian, provided he is qualified and over 21 years
4. Special Parental Authorities
a. School
b. Administrators
c. Teachers
d. Individual, entity, or institution engaged in child care

Available Defense
Proof that the parent/guardian observed all diligence of a good father of a family to prevent the
damage.

1. Parents
Art. 2180 (2), CC. The father and, in case of his death or incapacity, the mother, are responsible
for the damages caused by the minor children who live in their company.

Art. 211, FC. Parents and other persons exercising parental authority shall be civilly liable for the
injuries and damages caused by the acts or omissions of their unemancipated children living in
 35

their company and under their parental authority subject to the appropriate defenses provided
by law.

Parents are responsible for their minor children who live in their company.

“Minors” Defined
Minors refer to those who are below 21 years old, not below 18 years. The law reducing majority
age did not amend Art. 2180. The basis is the Art. 236(3) of the Family Code, as amended by RA
6809, which provides that nothing in the Family Code shall be construed to derogate from the
duty or responsibility of parents and guardians for children and wards below 21 years of age
mentioned in Art. 2180, CC

Death/Incapacity of Father Irrelevant The provision in Art. 2180, which makes the mother liable
only upon the death/incapacity of the father is no longer operative due to Family Code
provisions:
• Art. 221 states that persons exercising parental authority shall be civilly liable for the torts of
the children in their care.
• Art. 211 states that both the father and the mother exercise parental authority.
Note: Even if the complaint for damages is filed when parental authority is already lodged with
the adoptive parents, the parents who shall be made vicariously liable are those who exercised
parental authority at the time the quasi-delict was committed. In this case, it was the biological
parents. [Tamargo v. IAC, G.R. No. 85044 (1992)]

Basis of liability of parents and adopters

 36

Parental liability is anchored upon parental authority coupled with presumed parental
dereliction in the discharge of the duties accompanying such authority. The parental
dereliction is, of course, only presumed and the presumption can be overturned under Article
2180 CC, by proof that the parents had exercised all the diligence of a good father of a family to
prevent the damage [Tamargo v. CA, supra].

Illegitimate children Responsibility is with the mother whom the law vests with parental
authority.

2. Guardians
Art. 2180 (3), CC. Guardians are liable for damages caused by the minors or incapacitated
persons who are under their authority and live in their company.
The liability of guardians with respect to their wards is governed by the same rule as in the
liability of parents with respect to their children below 21 years and who live with them.

“Incapacitated” Defined (Rule 92, Rules of

Court) Also known as those who are “incompetent:”
1. Those suffering penalty of civil interdiction
2. Prodigals
3. Deaf and dumb unable to read and write
4. Unsound mind, even though they have lucid intervals
5. Being of sound mind, but by reason of age, disease, weak mind, and other similar causes,
cannot take care of themselves or manage their property

Minors or incapacitated tortfeasors without

a parent or guardian (Art. 2182)
Answerable with his own property in an action against him. A guardian ad litem shall be
appointed.
b. Teachers and Schools
Art. 2180 (7), CC. Lastly, teachers or heads of establishments of arts and trades shall be liable for
damages caused by their pupils and students or apprentices, so long as they remain in their
custody.
Art. 218, FC. The school, its administrators and teachers, or the individual, entity or institution
engaged in child shall have special parental authority and responsibility over the
minor child while under their supervision, instruction or custody.

Authority and responsibility shall apply to all authorized activities whether inside or outside the
premises of the school, entity or institution.

Art. 219, FC. Those given the authority and responsibility under the preceding Article shall be
principally and solidarily liable for damages caused by the acts or omissions of
theunemancipated minor. The parents, judicial guardians or the persons exercising
substitute parental authority over said minor shall be subsidiarily liable
 37

The respective liabilities of those referred to in the preceding paragraph shall not apply if
it is proved that they exercised the proper diligence required under the particular
circumstances.

All other cases not covered by this and the preceding articles shall be governed by the provisions
of the CC on quasi-delicts.

Under Art. 2180, teachers or heads of establishments of arts and trades are responsible for their
pupils and students or apprentices, so long as they remain in the former’s custody, regardless of
age.

Under the Family Code, liability attaches to the school, its administrators and teachers, or the
individual or entity engaged in child care, so long as the child is under their supervision,
instruction, or custody, and the child is below 18 years old.

Basis of liability
The persons vicariously liable stand in loco parentis and are called upon to exercise reasonable
supervision over the conduct of the students.

“Custody” Defined “Custody” means the protective and supervisory custody that the school, its
head and teachers exercise over the pupils, for as long as they are inattendance in school, which
includes recess time. It is not required that the student must live and board in the school.

Custody does not connote immediate and actual physical control. It refers more to the influence
exerted on the student and the discipline instilled in him. [Palisoc v. Brillantes, G.R. No. L-29025
(1971)]

As long as it is shown that the student is in the school premises pursuant to a legitimate
student objective, in the exercise of a legitimate right, or the enjoyment of a legitimate student
privilege, the responsibility of the school authorities over the student continues. [Amadora v CA,
G.R. No. L-47745 (1988)]

Available Defense
Proof that the teacher/school observed all diligence of a good father of a family to prevent the
damage.
 38

What must be established for vicarious liability:

1. Existence of an employer-employee relationship between company and tortfeasor
2. Tortious act had been committed while the tortfeasor was acting in the normal
course of employment
Basis for liability is not respondeat superior, but pater familias.

Basis of liability
Employer’s negligence in:
1. The selection of their employees (culpa in eligiendo)
2. The supervision over their employees (culpa in vigilando)
 39

The liability imposed upon employers with respect to damages occasioned by the negligence of
their employees to whom they are not bound by contract is based on the employer’s own
negligence, such as when he places a powerful automobile in the hands of a servant whom he
knows to be ignorant of the method of managing such vehicle [Cangco v. Manila Railroad,
supra].

Presumption of Negligence
The presentation of proof of the negligence of its employee gives rise to the presumption that
the defendant employer did not exercise the diligence of a good father of a family in the
selection and supervision of its employees [Lampesa v. De Vera, G.R. No. 155111 (2008)].

Available Defense
Proof of due care and diligence in the:
1. Selection of employees
a. Careful examination of the applicant for employment as to his qualifications, experience
and record of service
2. Supervision of employees
a. Formulation of standard operating procedures, suitable rules and regulations, and
issuance of proper instructions
b. Monitoring of their implementation
c. Imposition of disciplinary measures in case of their breach

When Applicable
Vicarious liability arises when there is an employer-employee relationship. To determine its
existence, the “control test” is used. Under this, a relationship exists if the “employer” controls
both the means and the details of the process by which the “employee” is to accomplish his task.
[Professional Services v. CA and Agana, G.R. No. 126297 (2010)].

Criminal Negligence
The vicarious liability of the employer for criminal negligence of his employee is governed by RPC
103. Conviction of the employee conclusively binds the employer.

Defense of due diligence in the selection and supervision of the employee is not available.
The employer cannot appeal the conviction [Fernando v. Franco (1971)].

Note: The liability of the employer under Art. 103 RPC is subsidiary.

Registered Owner Rule

The registered owner of the vehicle is primarily responsible to the public for whatever damage or
injury the vehicle may have caused, even if he had already sold the same to someone else.

The policy is the easy identification of the owner who can be held responsible so as not to
inconvenience or prejudice the third party injured [Cadiente v. Macas (2008)]. The registered
 40

owner, however, has the right to be indemnified by the real or actual owner of the amount that
he may be required to pay as damages for the injury caused to the plaintiff [Orix Metro Leasing v.
Mangalinan (2012)].

This rule applies even if the vehicle is leased to third persons. The liability of the registered
owner is subject to his right of recourse against the transferee or buyer.

PROXIMATE CAUSE

In order that civil liability for negligence may arise, there must be a direct causal connection
between the damage suffered by the plaintiff and the act or omission of the defendant.

Plaintiff, however, must establish a sufficient link between the act or omission and the
damage or injury. That link must not be remote or far-fetched; otherwise, no liability will attach.

The damage or injury must be a natural and probable result of the act or omission. [Dy
Teban Trading, Inc. v. Ching, G.R. No. 161803 (2008)]

Note: It is not required that it be shown that the injury would not have occurred without the act
or omission complained of. It only requires some reasonable connection between the act or
omission and the injury.

If the actor’s conduct is a material element and 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 v.
IAC, G.R. No. 66102-04 (1990)]

There is no exact formula to determine proximate cause. It is based upon mixed considerations
of logic, common sense, policy and precedent. [Dy Teban Trading, Inc. v. Ching, G.R. No. 161803
(2008)]

Two Definitions
Proximate cause immediately resulting in
injury:
1. That cause, which, in natural and continuous sequence, unbroken by any efficient intervening
cause, produces the injury, and without which the result would not have occurred. [Bataclan v.
Medina, G.R. No. 10126 (1957)]
2. Foreseen by a person of ordinary care that the injury complained of or some similar injury
would result from the cause as a natural and probable consequence. [Pilipinas Bank v. CA, G.R.
No. 105410 (1994)]

Proximate cause not immediately resulting in injury but sets in motion a chain of events, which
eventually result in injury:
 41

a. That cause acting first and producing the injury, by setting other events in motion, all
constituting a natural and continuous chain, each having a close causal connection with its
immediate predecessor, the final event in the chain immediately effecting the injury as a natural
and probable result of the first cause, under such circumstances that the person responsible for
the first event should, as an ordinary prudent and intelligent person,
have reasonable ground to expect at the moment of his act that an injury might probably result
therefrom.
b. Also known as the proximate legal cause
c. A cause is still proximate, although farther in time to the injury, if the happening of it set other
foreseeable events into motion resulting ultimately in the damage. [Abrogar v. Cosmos Bottling
Co., G.R. No. 164749 (2017)] Respondent was mistakenly given Dormicum, a potent sleeping
tablet, instead of medication for his blood sugar. He took a pill for 3 consecutive days and on the
third day, he fell asleep on the wheel and figured in a vehicular accident. The Court found that
the proximate cause of the accident was the Mercury Drug employee’s mistake in reading the
prescription [Mercury Drug v. Baking, G.R. No. 156037 (2007)].

Note: Here, 3 days have elapsed from the time of the negligent act determined by the Court as
the proximate cause; thus, the Court did not consider the time element in determining
proximate cause but the nature and gravity of the injury.

Res ipsa loquitur

Definition
Literally, res ipsa loquitur means “the thing speaks for itself” [Professional Services, Inc. v. Agana,
G.R. No. 126297(2007)].

Statement of the Rule

Where the thing which causes injury is shown to be under the management of the defendant (or
his servants), and the accident is such as in the ordinary course of things does not happen if
those who have the management (or control) used proper care, it affords reasonable evidence,
in the absence of an explanation by the defendant, that the accident arose from (or was caused
by the defendants) want of care [Tan v. JAM Transit, G.R. No. 183198 (2009)].
Where the thing which caused the injury, without the fault of the injured, is under the
exclusive control of the defendant and the injury is such that it should not have occurred if he,
having such control used proper care, it affords reasonable evidence, in the absence of
explanation that the injury arose from the defendant’s want of care, and the burden of proof is
shifted to him to establish that he has observed due care and diligence [Professional Services v.
Agana, G.R. No. 126297(2007)].

Elements [Ramos v. CA, G.R. No. 124354 (1999)]

1. The accident is of a kind which ordinarily does not occur in the absence of someone’s
negligence;
2. It is caused by an instrumentality within the exclusive control of the defendant or defendants;
and
 42

3. The possibility of contributing conduct, which would make the plaintiff responsible, is
eliminated.

Note: In Professional Services v. Agana, supra, the Court added “the absence of explanation by
the defendant” as a fourth element.

Last Clear Chance

The test is also known as the “Doctrine of Discovered Peril” or “Doctrine of Supervening
Negligence” or “Humanitarian Doctrine.”

Effect on Plaintiff's Right to Recover

The antecedent negligence of the plaintiff does not preclude him from recovering damages
caused by the supervening negligence of the defendant, who had the last fair chance to prevent
the impending harm by the exercise of due diligence. [PNR v. Brunty,
G.R. No. 169891 (2006)]

Establishing the Defendant’s Liability

Where both parties are negligent, but the negligent act of one is appreciably later in time
than that of the other, or when it is impossible to determine whose fault or negligence should be
attributed to the incident, the one who had the last clear opportunity to avoid the impending
harm and failed to do so is chargeable with the consequences. [Philippine Bank of Commerce v.
CA, G.R. No. 97626 (1997)]

It is necessary to show that the person who allegedly had the last opportunity to avert the
accident was aware of the existence of the peril, or should, with exercise of due care, have been
aware of it. [Pantranco v. Baesa, G.R. No. 79050-51 (1989)]

When Not Applicable

a. Where the proximate cause of the injury has been established [PNR v. Brunty, G.R. No. 169891
(2006)]
b. In a case of culpa contractual, where neither the contributory negligence of the
plaintiff nor his last clear chance to avoid the loss, would exonerate the defendant
from liability. Such contributory negligence or last clear chance by the plaintiff merely
serves to reduce the recovery of damages by the plaintiff but does not exculpate the
defendant from his breach of contract [Consolidated Bank v. CA, G.R. No. 138569 (2003)]

c. When the party charged is required to act instantaneously, and if the injury cannot be
avoided by the application of all means at hand after peril is or should have been discovered
[Pantranco v. Baesa, G.R. No. 79050-51 (1989)]

d. The doctrine of last clear chance, as enunciated in Anuran v. Buno, applies in a suit between
the owners and drivers of colliding vehicles. It does not arise where a passenger demands
responsibility from the carrier to enforce its contractual obligations. It will be inequitable to
 43

exempt the negligent driver of the jeepney and its owners on the ground that the other driver
was likewise guilty of negligence [Bustamante v. CA, G.R. No. 89880
(1991)].

Note:
• If plaintiff is the proximate cause: no recovery can be made.
• If plaintiff is not the proximate cause:

Recovery can be made but such will be mitigated.

• If negligence of parties is equal in degree, then each bears his own loss.

Damnum absque injuria

Under this principle, the legitimate exercise of a person's rights, even if it causes loss to
another, does not automatically result in an actionable injury. The law does not prescribe a
remedy for the loss. This principle does not, however, apply when there is an abuse of a person's
right, or when the exercise of this right is suspended or extinguished pursuant to a court order.
Indeed, in the availment of one's rights, one must act with justice, give their due, and observe
honesty and good faith. [Amonoy v. Gutierrez, G.R. No. 140420 (2001)].

The proper exercise of a lawful right cannot constitute a legal wrong for which an action will lie,
although the act may result in damage to another, for no legal right has been invaded.

One may use any lawful means to accomplish a lawful purpose and though the means adopted
may cause damage to another, no cause of action arises in the latter's favor. An
injury or damage occasioned thereby is damnum absque injuria. The courts can give no redress
for hardship to an individual resulting from action reasonably calculated to achieve a lawful
means. [Custodio v. CA, supra]

Actual and Compensatory Damages

Compensatory damages
Damages in satisfaction of, or in recompense for, loss or injury sustained. The phrase “actual
damages” is sometimes used as a synonym of compensatory damages.

Requisites:
To seek recovery of actual damages, it is necessary to prove the actual amount of loss with a
reasonable degree of certainty, premised upon competent proof and on the best evidence
obtainable [Asilo, Jr. v. People and Sps. Bombasi, G.R. No. 159017-18
(2011); ICTSI v. Chua, G.R. No. 195031 (2014)].

Alleged and proved with certainty

Art. 2199, CC. Except as provided by law or by stipulation, one is entitled to an adequate
compensation only for such pecuniary loss suffered by him as he has duly proved. Such
compensation is referred to as actual or compensatory damages.
 44

The damages must be proven by competent evidence (admissible or probative). There must be
pleading and proof of actual damages suffered for the same to be recovered. In addition to the
fact that the amount of loss must be capable of proof, it must also be actually proven with a
reasonable degree of certainty, premised upon competent proof or the best evidence obtainable
such as receipts, cash and check vouchers, and other documentary evidence of the same nature.
The burden of proof of the damage suffered is imposed on the party claiming the same.
Selfserving statements are not sufficient basis for an award of actual damages [Oceaneering
Contractors v. Baretto, G.R. No. 184215 (2011)].

Actual or compensatory damages cannot be presumed, but must be proven with a reasonable
degree of certainty [MCC Industrial Sales Corp. v. Ssangyong Corp., G.R. No.
170633 (2007)].

Damages must be proved with reasonable accuracy, even when not denied [Valencia v. Tantoco,
G.R. No. L-7267 (1956)].

When is a person entitled? [PeLoRePLS]

1. When there is a pecuniary loss suffered by him;
2. When he has alleged and prayed for such relief [Manchester Dev’t Corp v. CA, G.R.
No. L-75919 (1987)];
3. When he has duly proved it;
4. When provided by law or by stipulation. No proof of pecuniary loss is necessary for: moral,
nominal, temperate, liquidated or exemplary damages.

The assessment of such damages is discretionary upon the court, except liquidated ones. [Art.
2216, CC]. If the physical integrity of a person’s body is violated or diminished, actual injury is
suffered for which actual or compensatory damages are due and assessable. Such violation
entitles a person to actual or compensatory damages. A
scar, especially on a woman’s face, is a violation of bodily integrity, giving rise to a legitimate
claim for restoration to her condition ante. [Gatchalian v. Delim, G.R. No. 56487 (1991)]

Formula for the net earning capacity

Net earning capacity = Life Expectancy × (Gross annual income – Reasonable living expenses)
[People v. Aringue, G.R. No. 116487 (1997); Candano v. Sugata-On, G.R. 163212, (2007)].

Where: Life expectancy = × (80 – age of victim at the time of death) General Rule: Damages for
loss of earning capacity shall be awarded in every case, and that claimant shall present
documentary evidence to substantiate claim for damages. [Tan, et al. v. OMC Carriers, Inc., G.R.
No. 190521 (2011)].

Attorney’s fees and expenses of litigation

 45

Art. 2208, CC. In the absence of stipulation, attorney's fees and expenses of litigation, other than
judicial costs, cannot be recovered, except:
1. When exemplary damages are awarded;
2. When the defendant's act or omission has compelled the plaintiff to litigate with third persons
or to incur expenses to protect his interest;
3. In criminal cases of malicious prosecution against the plaintiff;
4. In case of a clearly unfounded civil action or proceeding against the plaintiff;
5. Where the defendant acted in gross and evident bad faith in refusing to satisfy the plaintiff's
plainly valid, just and demandable claim;
6. In actions for legal support;
7. In actions for the recovery of wages of household helpers, laborers and skilled workers;
8. In actions for indemnity under workmen's compensation and employer's liability laws;
9. In a separate civil action to recover civil liability arising from a crime;
10. When at least double judicial costs are awarded;
11. In any other case where the court deems it just and equitable that attorney's fees and
expenses of litigation should be recovered.

In all cases, the attorney's fees and expenses of litigation must be reasonable.

Two kinds of attorney’s fees:

1. Ordinary - reasonable compensation paid to a lawyer for his services
2. Extraordinary - awarded to a successful litigant; to be paid by the losing party as
indemnity for damages. [Aquino v. Casabar, G.R. No. 191470, (2015)].

Attorney’s fees in CC 2208 is an award made in favor of the litigant, not of his counsel, and the
litigant is the judgment creditor who may enforce the judgment for attorney's fees by execution
[Quirante v. IAC, G.R. No. 73886 (1989)].

Moral Damages
Art. 2217, CC. Moral damages include physical suffering, mental anguish, fright, serious anxiety,
besmirched reputation, wounded feelings, moral shock, social humiliation, and similar injury.
Though incapable of pecuniary computation, moral damages may be recovered if they are the
proximate result of the defendant's wrongful act or omission.

Art. 2218, CC. In the adjudication of moral damages, the sentimental value of property,
real or personal, may be considered. Moral damages are emphatically not intended to enrich a
complainant at the expense of the defendant. Its award is aimed at the restoration, within the
limits of the possible, of the spiritual status quo ante, and it must be proportional to the suffering
inflicted [Visayan Sawmill v. CA, G.R. No. 83851 (1993)]. Mental suffering means distress or
serious pain as distinguished from annoyance, regret or vexation [Bagumbayan Corp. v. IAC, G.R.
No. L-66274 (1984)].

When awarded (Art. 2217)

 46

Awarded when injury consists of:

1. Physical suffering
2. Besmirched reputation
3. Mental anguish
4. Fright
5. Moral shock
6. Wounded feelings
7. Social humiliation
8. Serious anxiety
9. Similar injury

Art. 2219, CC. Moral damages may be

recovered in the following and analogous cases:
1. A criminal offense resulting in physical injuries;
2. Quasi-delicts causing physical injuries;
3. Seduction, abduction, rape, or other lascivious acts;
4. Adultery or concubinage;
5. Illegal or arbitrary detention or arrest;
6. Illegal search;
7. Libel, slander or any other form of defamation;
8. Malicious prosecution;
9. Acts mentioned in article 309;
10. Acts and actions referred to in articles 21, 26, 27, 28, 29, 30, 32, 34, and 35.

The parents of the female seduced, abducted, raped, or abused, referred to in No. 3 of this
article, may also recover moral damages.

The spouse, descendants, ascendants, and brothers and sisters may bring the action

In acts referred to in Arts. 21, 26, 27, 28, 29, 32, 34 and 35, CC
Art. 21, CC. Any person who wilfully causes loss or injury to another in a manner that is contrary
to morals, good customs or public policy shall compensate the latter for the damage.

Acts Contra Bonus Mores

Moral damages are recoverable where the dismissal of the employee was attended by bad faith
or fraud or constituted an act oppressive to labor, or was done in a manner contrary to morals,
good customs, or public policy [Triple Eight v. NLRC, G.R. No. 129584, (1998)]

Nominal damages consist of damages awarded not for the purposes of indemnifying the plaintiff
for any loss suffered, but for the vindication or recognition of a right violated by the defendant.
Nominal damages are awarded in every obligation arising from law, contracts, quasi-contracts,
acts or omissions punished by law, and quasi-delicts [PNOC v. CA, G.R. No. 107518, (1998)].

Requisites and characteristics

 47

1. Invasion or violation of any legal or property right.

2. No proof of loss is required.
3. The award is to vindicate the right violated.

i. When Nominal Damages are Recoverable

Art. 2221, CC. Nominal damages are adjudicated in order that a right of the plaintiff, which has
been violated or invaded by the defendant, may be vindicated or recognized, and not for the
purpose of indemnifying the plaintiff for any loss suffered by him.

Art. 2222, CC. The court may award nominal damages in every obligation arising from any source
enumerated in article 1157, or in every case where any property right has been invaded.

Art. 2223, CC. The adjudication of nominal damages shall preclude further contest upon the right
involved and all accessory questions, as between the parties to the suit, or their respective heirs
and assigns.

1. Violation of a right
Nominal damages "are recoverable where a legal right is technically violated and must be
vindicated against an invasion that has produced no actual present loss of any kind.”
Its award is thus not for the purpose of indemnification for a loss but for the recognition
and vindication of a right. When granted by the courts, they are not treated as an equivalent of a
wrong inflicted but simply a recognition of the existence of a technical injury [Gonzales v. PCIB,
G.R. No. 180257 (2011)].

Nominal damages may also be awarded in cases where a property right has been
invaded. [Twin Ace v. Rufina, G.R. No. 160191, (2006)].

2. No actual loss caused or proven

When the plaintiff suffers injury not enough to warrant an award of actual damages, then
nominal damages may be given. [Twin Ace v. Rufina, supra].

Nominal damages may also be awarded where there has been a breach of contract and no
substantial injury or actual damages whatsoever have been or can be shown [Areola v. CA, G.R.
No. 95641, (1994)].

Under conditions of equity

The plaintiffs sought to recover damages from the hotel due to its breach of contract as regards
food service for the plaintiff’s guests.

The SC did not award actual and moral damages because it found that the plaintiff’s failure to
inform the hotel of the increase of guests was the proximate cause of the plaintiff’s injury.
Nevertheless, the SC awarded nominal damages under considerations of equity, for the
discomfiture that the plaintiffs were subjected to during the event, averring that the hotel could
 48

have managed the "situation" better, it being held in high esteem in the hotel and service
industry. [Spouses Guanio v. Makati Shangri-la, G.R. No. 190601 (2011)].

Nature and determination of amount

The assessment of nominal damages is left to the discretion of the trial court according to the
circumstances of the case.

Small but substantial

Generally, nominal damages, by their nature, are small sums fixed by the court without
regard to the extent of the harm done to the injured party. However, it is generally held that
nominal damages is a substantial claim, if based upon the violation of a legal right; in such a case,
the law presumes damage although actual or compensatory damages are not proven [Gonzales
v. People, G.R. No. 159950 (2007)].

Commensurate to the injury suffered

Even if there was no documentary evidence to justify Maria’s claim for actual damages, she was
still awarded nominal damages to vindicate her right and its value was commensurate to the
injury she suffered [Pedrosa v. CA, G.R. No. 118680, (2001)].

Special reasons extant in the case

Since the assessment of damages are being left to the discretion of the court, the circumstances
of a particular case will determine whether the amount assessed as nominal damage is within
the scope or intent of the law [Robes-Francisco v. CFI, G.R. No. L- 41093, (1978)].

For instance, in the case of People v. Bernardo, supra, given the relatively short duration of the
child’s kidnapping, the court found the amount of ₱50,000.00 awarded as nominal damages
excessive, so it was reduced to ₱10,000.00.

Temperate Damages
Art. 2224, CC. Temperate or moderate damages, which are more than nominal but less than
compensatory damages, may be recovered when the court finds that some pecuniary loss has
been suffered but its amount cannot, from the nature of the case, be provided with certainty.

Art. 2225, CC. Temperate damages must be reasonable under the circumstances. These damages
are awarded for pecuniary loss, in an amount that, from the nature of the case, cannot be
proved with certainty.

Temperate damages are more than nominal but less than compensatory damages. [Tan v. OMC
Carriers, 2011 supra]. Temperate damages are incompatible with nominal damages hence,
cannot be granted concurrently [Citytrust Bank v. IAC, G.R. No. 84281(1994)].

Requisites
1. Actual existence of pecuniary loss;
2. The nature and circumstances of the loss prevents proof of the exact amount;
 49

3. They are more than nominal and less than compensatory;

4. Causal connection between the loss and the defendant’s act or omission;
5. Amount must be reasonable.

Liquidated Damages
Art. 2226, CC. Liquidated damages are those agreed upon by the parties to a contract, to be paid
in case of breach thereof.

Art. 2227, CC. Liquidated damages, whether intended as an indemnity or a penalty, shall be
equitably reduced if they are iniquitous or unconscionable.

Requisites and characteristics

1. Liquidated damages must be validly stipulated.
2. There is no need to prove the amount of actual damages.
3. Breach of the principal contract must be proved.

Exemplary or Corrective Damages

Art. 2229, CC. Exemplary or corrective damages are imposed, by way of example
or correction for the public good, in addition to the moral, temperate, liquidated or
compensatory damages.

General Principles
1. Exemplary damages cannot be awarded alone: they must be awarded IN ADDITION to moral,
temperate, liquidated or compensatory damages.

2. The purpose of the award is to deter the defendant (and others in a similar condition) from a
repetition of the acts for which exemplary damages were awarded;hence, they are not
recoverable as a matter of right.

3. The defendant must be guilty of malice or negligence above the ordinary.

4. Plaintiff is not required to prove the amount of exemplary damages.

(a) But plaintiff must show that he is entitled to moral, temperate, or compensatory damage;
that is, substantial damages, not purely nominal ones.

This requirement applies even if the contract stipulates liquidated damages [PNB v. CA, G.R. No.
116181 (1996)].

(b) The amount of exemplary damage need not be pleaded in the complaint because the same
cannot be proved. It is merely incidental or dependent upon what the court may award as
compensatory damages.
 50

Under Art. 2234 of the CC, a showing that the plaintiff is entitled to temperate damages allows
the award of exemplary damages [Canada v. All Commodities Marketing (2008)]. Exemplary
damages are imposed not to enrich one party or impoverish another but to serve as a deterrent
against or as a negative incentive to curb socially deleterious actions. [PNB v. CA, supra].

PROPERTY
Accession – the right by virtue of which the owner of a thing becomes the owner of
everything that is produced thereby, or which is incorporated or attached thereto, either
naturally or artificially. [Art. 440, CC]

Not a mode of acquiring property; it does not depend upon a new title.
1. Right to hidden treasure
Definition: Any hidden and unknown deposit of money, jewelry, or other precious objects,
the lawful ownership of which does not appear. [Art. 439, CC]

General Rule: Belongs to the owner of the land, building, or other property on which it is
found. [Art. 438, CC]

Exceptions
• If discovery made on property of another, the State, or any of its subdivisions AND by
chance: one-half shall be allowed to the finder
• If finder is a trespasser: he shall not be entitled to any
• If the things found be of interest to science or the arts: State may acquire them at their
just price, which shall be divided in conformity with rule stated
2. Rules of accession
a. FOR IMMOVABLES
i. ACCESSION DISCRETA
To the owner belongs:
(1) The natural fruits;
(2) The industrial fruits;
 51

(3) The Civil fruits. [Art. 441, CC]

General Rule: To the owner of the principal belongs the natural, industrial, and civil fruits.
Exceptions:
• Possession in good faith: the possessor is entitled to the fruits received before the
possession is legally interrupted [Art. 526, CC]
• Usufruct, fruits belong to the usufructuary. [Art. 556, CC]
• Lease, fruits belong to the lessee in civil law lease of agricultural land; lessor gets rentals
as civil fruits
• Antichresis [Art. 2132, CC]
Kinds of fruits
1. Natural – spontaneous products of the soil and the young, and other products of
animals. [Art. 442(1), CC]

Partus sequitur ventrem: To the owner of female animals would also belong the young of
such animals although this cannot apply when the owner mixes his cattle with those of
another and they interbreed, thus co-ownership is applied. [Siari Valley Estate v. Lucasan,
G.R. No. L-13281 (1960)].

2. Industrial – Fruits produced by the lands of any kind through cultivation of labor [Art.
442 (2), CC]

3. Civil – Rents of buildings, price of leases of lands and other property and the amount
of perpetual or life annuities or other similar income [Art. 442 (3), CC]

Principles Applicable to Accession Discreta

a. Time of Accrual depending on kind:
i. Annuals: from the time seedlings appear on the ground.
ii. Perennials: from the time fruits actually appear on the plants.
iii. Young of animals: from the time they are in the womb, although unborn – beginning of
maximum ordinary period of gestation.
iv. Fowls: from the time of incubation.

b. Pay expenses to third person possessor in good faith - He who receives the fruits has
the obligation to pay the expenses incurred by a third person in the production, gathering
and preservation of the fruits. [Art. 443, CC]

i. Exception: Owner does not have to pay if land is recovered before gathering from a
possessor in bad faith.

ii. But if owner recovers land from possessor in bad faith, he may choose to acquire the
land and he can make the possessor, builder, planter, sower account for the fruits that
have been gathered, with the obligation to deduct the expenses for producing, harvesting
and preservation of the fruits.
 52

ii. ACCESSION CONTINUA

Right pertaining to the owner of a thing over everything that is incorporated or attached thereto
either naturally or artificially (by external forces). [Art. 440, CC]

ARTIFICIALLY/INDUSTRIALLY INCORPORATED [Arts. 445-456, CC]

Building, planting or sowing on land owned by another (over immovables).

General rule: Whatever is built, planted or sown on the land of another and the
improvements or repairs made thereon, belong to the owner of the land, subject to the
rules on BPS. [Art. 445, CC]
Presumptions
• All works, sowing and planting are presumed made by the owner and at his expense,
unless the contrary is proved. [Art. 446, CC]
● The incorporation must be done in such a manner that to separate the principal from
the accessory would result in injury to both principal and accessory.
● The party in bad faith is always liable for damages.
● When both parties are in bad faith, they are considered to be in good faith.
● The owner of the principal thing owns the natural, industrial and civil fruits, except when
the following persons exist:
a. Possessor in Good Faith
b. Usufructuary
c. Lessee
d. Antichretic creditor

Bad Faith On the part of the landowner Whenever the building, planting or sowing was
done with his knowledge and without opposition on his part. [Art. 453(2), CC] On the part of
the owner of materials

Allows the use of his materials without protest. On the part of the builder, planter and sower
One who has knowledge of any flaw or defect in his title or mode of acquisition [Art. 526,
CC]
He is a possessor in bad faith at the time of BPS if he knows that:
a. He does not have title to the land, and thus, has no right to build thereon; or
b. He has no permission to build, plant, or sow on the land which he possesses but does
not own.

Note: Bad faith leads to liability for damages and the loss of the works or the improvement
without right to indemnity. [Art. 449, CC]

If both parties are in bad faith, then treat them as if they are both in good faith. [Art.
453(1), CC]

NATURALLY INCORPORATED [Arts. 457- 465, CC]

 53

a. Alluvium [Art. 457, CC]

Soil is gradually deposited on banks adjoining the river.

Requisites [GAC – Gradual, Adjacent, Currents]

1. Deposit of soil or sediment is gradual and imperceptible;
2. As a result of the action of the currents of the waters of the river and should have no
human intervention;
3. Land where the accretion takes place is adjacent to the banks of the rivers (RIPARIAN
LAND); and
4. Deemed to Exist: When the deposit of the sediment has reached a level higher than
the highest level of the water during the year, i.e. higher than the riverbank. [Meneses v.
CA, G.R. No. 82220 (1995)]

Effect: The riparian owner automatically owns the alluvion but it does not automatically
become registered property in his name. [Grande v. CA, G.R. No. L-17652 (1962)]

Rationale: To compensate the owners of the land from forces of nature and to encourage
riparian owners to cultivate and enrich the land.

Exception: Deposits due to human action or intervention and abrupt or unanticipated

flooding brought about by extreme weather conditions.

Note: Action of the sea over the estate because of the tide and which results to a strip of
land becomes foreshore land and passes to the realm of the public domain. [Republic v.
Court of Appeals, 281 SCRA 639]

b. Avulsion [Art. 459, CC]

A known portion of land is segregated from one estate by the forceful current of a river,
creek or torrent and transferred to another.

Requisites: [ACFI – Abrupt, caused by Current or other Forces of nature, Identifiable]

1. Segregation and transfer of land is sudden and abrupt;
2. Caused by the current of the river, creek or torrent; and
3. The portion of land transported must be known and identifiable; or

Effect: The ownership of the detached property is retained by the owner provided that
he removes the same within 2 years from the detachment. [Art. 459, CC]

c. Uprooted Trees [Art. 460, CC]

In case of uprooted trees, the owner retains ownership if he makes a claim within 6
months.
 54

This refers only to uprooted trees and does not include trees which remain planted on a
known portion of land carried by the force of the waters. In this latter case, the trees are
regarded as accessions of the land through gradual changes in the course of adjoining
stream. [Payatas v. Tuazon, G.R. No. L-30067 (1929)]

d. Change Of Course Of River [Arts. 461- 462, CC]

Requisites:
1. Change in the natural course of the waters of the river;
2. Such change causes the abandonment of the riverbeds;
3. Such change is sudden or abrupt; and
4. Change is permanent.

Effects
a. Owners whose lands are occupied by the new course of the river automatically (ipso
facto) become owners of the old bed, in proportion to the area they lost [Art. 461, CC]
b. Owners of the lands adjoining the old bed are given the right to acquire the same by
paying the value of the land. Not exceeding the value of the land invaded by the new bed
(the old property of the owner) [Art. 461, CC]
c. The new bed opened by the river on a private estate shall become of public dominion.
[Art. 462, CC]

Exceptions:
a. Where the river simply dries up, the abandoned riverbed belongs to the State because
there are no persons whose lands are occupied by the waters of the river. It is still public
dominion.
b. Where the government reverts back the course of the river, there is no compensation.

Note: Sec. 58 of the Water Code (PD 1067) provides that when a river or stream
suddenly
changes its course to traverse private lands, the owners of the affected lands may not
compel the government to restore the river to its former river bed, nor can they restrain
the
government from taking steps to revert the river or stream to its former course. The
owners of the land thus affected are not entitled to compensation for any damage
sustained thereby. However, the former owners of the new bed shall be the owners of the
abandoned bed in proportion to the area lost by it.

e. Division of River into Branches [Art. 463, CC]

Whenever the current of a river divides itself into branches, leaving a piece of land or part
thereof isolated, the owner of the land retains his ownership and there is no accession.
He also retains it if a portion of land is separated from the estate by the current.
 55

f. Formation of Islands [Arts. 464-465, CC]

They belong to the State if [Art. 464]:
a. Formed on the seas within the jurisdiction of the Philippines;
b. Formed on lakes; or
c. Formed on navigable or floatable rivers:
• Capable of affording a channel or passage for ships and vessels;
• Must be sufficient not only to float bancas and light boats, but also bigger watercraft;
• Deep enough to allow unobstructed movements of ships and vessels.
Test of whether river is navigable: Whether it can be used as a highway of commerce, trade
and travel.

They belong to the private owner of the separated land if [Art. 463]:
The island is formed in a place not mentioned in Art. 464.

Note: There is no accession when islands are formed by the branching of a river; the owner
retains ownership of the isolated piece of land.

They belong to the owners of the nearest margins or banks if [Art. 465]:
a. Formed through successive accumulation of alluvial deposits; and
b. On non-navigable and non-floatable rivers.

Note: If island is in the middle of the river, divide longitudinally in half. If nearer to one margin or
bank, to the nearer riparian owner.

Note: If a landowner allows the sea or a lake to eat up his land completely, it is a case of natural
expropriation and if the land later reappears, he does not regain ownership thereof. [Republic v.
Cabangis, G.R. No. L- 28379 (1929)]

CO-OWNERSHIP V. PARTNERSHIP

CO-OWNERSHIP PARTNERSHIP
As to May be created by law, succession, Always Created by contract
Creation contract, succession, fortuitous event
or occupancy
As to Purpose is the common enjoyment of Is to obtain profits
purpose thing owned in common
As to Has no separate juridical personality has separate and distinct personality
Personality separate and distinct from co-owners
As to An agreement NOT TO DIVIDE the Such agreement not to dissolve the
duration property for 10 years is void partnership is valid. Under the law,
there is no limitation upon the duration
of partnership
As to powers A co-owner has no right to represent A partner has the right to represent the
 56

of members his co-owner unless there is an partnership, unless there is an

agreement to the contrary agreement to the contrary
As to division Division and benefits, It is fixed by law Divison of profits and losses may be
of profits subject to agreement ot the partnership
As to effect The death of the co-owner has no The death of a partner shall result to
of Death effect the co-ownership the dissolution of a partnership
Occupation takes PLACE ONLY with respect to the property without an owner. Possession can
refer to all kinds of property, whether with owner or without owner. Occupation itself, when
proper can confer ownership but possession by itself cannot confer ownership. Occupation is an
original mode of acquiring ownership. Things appropriable by nature which are without an owner
such as animals that are the object of hunting and fishing and hidden treasure and abandoned
movables are acquired by occupation. On the other hand, possession is the holding of thing or
enjoyment of right. Possession can be in concept of an owner or holder.

ANTICHRESIS V. USUFRUCT
Antichresis is a real security transaction wherein the creditor acquires the right to receive fruits
of immovable of debtor, and the obligation a apply them to the payment of the interest, if owing,
and thereafter to the principal of his credit. A Usufruct is real right which authorizes it holder to
enjoy the property of another with the obligation of preserving its form and substance, unless
otherwise provided. Antichresis is always created by contract while Usufruct need not arise from
contract, because it may also be constituted by law of other acts intervivos, such as donation or
in a will and testament and proscription. The subject matter of Antichresis is always a REAL
PROPERTY while the subject matter of Usufruct may either be real or personal property. BOTH
CREATE REAL RIGHTS but Antichresis is an accessory contract, while Usufruct is a principal
contract.

USUFRUCT V. COMMODATUM

USUFRUCT is a right given to a usufructuary to enjoy the property with the obligation of
preserving its form and substance, in COMMODATUM is contract by which the bailor delivers to
the bailee something not consumable so that the latter may use it for something with the
obligation to return it. USUFRUCT, the usufructuary has the right to use the property and its
fruits, COMMODATUM only acquires the right to the use of the property but not to the fruits.
USUFRUCT may be constituted to the whole of part of the fruits of the same, it may even be
constituted over consumables like money, COMMODATUM, consumable goods may be the
subject thereof ONLY when the purpose of the contract is not consumption of the object, as
when it is merely exhibition.

EASEMENT V. USUFRUCT

EASEMENT is an encumbrance imposed upon immovable for the benefit of another immovable
belonging to a different owner in which case it is called REAL OR PREDIAL EASEMENT or for the
benefit of a community or group of persons in which case it is known as PERSONAL EASEMENT.
 57

USUFRUCT includes all uses of the property including rights to the fruits. EASEMENT is limited to
the specific use. USUFRUCT may be constituted to a movable or immovable property. EASEMENT
may be constituted ONLY on immovable property. EASEMENT does not extinguish by the death of
the owner of the dominant estate, while USUFRUCT is extinguish by the death of the
usufructuary unless there is a stipulation to the contrary.
EASEMENT contemplates 2 estates belonging 2 different owners; USUFRUCT contemplates only
one property, whereby the usufructuary uses and enjoys the property as well as the fruits, while
the other owns the naked title during the period of usufruct.

 THERE CAN BE NO EASEMENT OVER USUFRUCT. Since easement may only be constituted on
corporeal immovable property, no easement can constituted on a usufruct which is not a
corporeal right.
 THERE CAN BE NO USUFRUCT OVER EASEMENT. While usufuct may be created over a right,
that right must be existent of its own, independent of the property. A servitude cannot be
the object of usufruct because it has NO EXISTENCE INDEPENDENT OF ITS OWN TO WHICH
IT ATTACHES.
 THERE CAN BE NO EASEMENT OVER EASEMENT. ROMAN SAYING - THERE CAN NO
SERVITUDE OVER ANOTHER SERVITUDE BECAUSE an easement, although it is a real right
over immovable, is not a corporeal right.
 ONLY EASEMENT ON LIGHT AND VIEW CAN BE SUBJECT OF PRESCRIPTION BECAUSE IT IS
APPARENT AND CONTINUOUS EASEMENT.

EASEMENT
As to its exercise [Art. 615, CC]
Continuous: Use is or may be incessant (without pause or interruption), without the
intervention of any act of man
Discontinuous: Used at intervals, and dependent upon the acts of man.

As indication of its existence [Art. 615, CC]

Apparent: Made known and continually kept in view by external signs that reveal the use
and enjoyment of the same
Non-apparent: No external indication of their existence.

As to the object or obligation imposed

Positive: Imposes upon the owner of the servient estate the obligation of allowing
something to be done, or of doing it himself.

Negative: Prohibits the owner of the servient estate from doing something that he could
lawfully do if the easement did not exist

RIGHT OF WAY [Arts. 649-657, CC]

 58

Who may demand [Art. 649, CC]

1. The owner of the dominant estate; or
2. Any person with the real right to cultivate or use the dominant estate e.g. a
usufructuary, a de jure possessor.

Note: A lessee cannot demand such easement, because the lessor is the one bound to
maintain him in the enjoyment of the
property.

Note: A right of way can be established through the will of parties as well, and the
provisions on the legal easement of right of way will not govern.

Requisites for legal demand to establish the easement of right of way [Art. 649, CC and
Floro v. Llenado, G.R. No. 75723, 1995]]
The dominant estate is surrounded by other immovables owned by other persons;
1. There must absolutely be no access i.e. means of entrance or exit/egress to a public
highway;
2. Even if there is access, it is difficult or dangerous to use, or grossly insufficient;
• Mere inconvenience in the use of an outlet does not render the easement a necessity.
• An adequate outlet is one that is sufficient for the purpose and needs of the dominant
owner, and can be established at a reasonable expense.
• Does not necessarily have to be by land – an outlet through a navigable river or a lake
or the seaif suitable to the needs of the tenement is sufficient.

3. The isolation of the immovable is not due to the dominant owner’s own acts e.g. if he
constructs building to others obstructing the old way; and

4. There is payment of indemnity. If right of way is permanent and continuous for the
needs of the dominant estate = value of the land + amount of damage caused to the
servient estate.

If right of way is limited to necessary passage for cultivation of the estate and for
gathering crops, without permanent way = damage caused by encumbrance.

Rules for establishing Right of Way

The easement of right of way shall be established at the point least prejudicial to the
servient estate, and, insofar as consistent with this rule, where the distance from the
dominant estate to a public highway may be the shortest. [Art. 650, CC]

The criterion of least prejudice to the servient estate must prevail over the criterion of
shortest distance although this is a matter of judicial appreciation. While shortest distance
may ordinarily imply least prejudice, it is not always so as when there are permanent
structures obstructing the shortest distance; while on the other hand, the longest distance
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may be free of obstructions and the easiest or most convenient to pass through. [Quimen
v. CA, G.R. No. 112331 (1996)]

The fact that LGV had other means of egress to the public highway cannot extinguish the
said easement, being voluntary and not compulsory. The free ingress and egress along
Mangyan Road created by the voluntary agreement between the parties is thus legally
demandable with the corresponding duty on the servient estate not to obstruct the same.
[La Vista Association v. CA, G.R. No. 95252 (1997)]

The width of the easement of right of way shall be that which is sufficient for the needs of
the dominant estate, and may accordingly be changed from time to time. Art. 651, CC]
Who has the burden of proof in an action for right of way? The burden of proving the
existence of the prerequisites to validly claim a compulsory right of way lies on the owner
of the dominant estate.

NUISANCE

“Nuisances have been divided into two classes: Nuisances per se, and nuisances per
accidens” [Iloilo Cold Storage v. Municipal Council, 24 Phil 471]

Definition
A nuisance is any act, omission, establishment, condition of property, or anything else
which:
(1) Injures or endangers the health or safety of others; or others (Ex. House in danger of
falling, fireworks or explosives factory, houses without building permits and without
provisions for disposal of waste matter [Ayala v. Baretto, 33 Phil. 538]); or

(2) Annoys or offends the senses; (Ex. leather factory, garbage cans, pumping station with a
high chimney, smoke, noise [Bengzon v. Prov. of Pangasinan, 62 Phil. 816]; or

(3) Shocks, defies, or disregards decency or morality; (Ex. Movie actress strips nude in the
lobby of a movie house for sake of publicity for a movie, citing Paras, p. 748); or

(4) Obstructs or interferes with the free passage of any public highway or street, or any body of
water; (Ex. Houses or flea market stalls constructed in public streets); or

(5) Hinders or impairs the use of property [Art. 694, CC] (Ex. Illegal constructions or activities
on another person or entity’s land)

Public v. Private Nuisance

Public Nuisance
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Nuisance that affects a community or neighborhood or any considerable number of persons [Art.
695, CC]. (Ex. A noisy or dangerous factory in a residential district; a karaoke bar inside
a subdivision)

Private Nuisance
One that is not included in the foregoing (Public nuisance) definition. [Art. 695, CC] One
which violates only private rights and produces damages to but one or a few specific persons.

b. Doctrine of Attractive Nuisance One who maintains on his premises dangerous

instrumentalities or appliances of a character likely to attract children at play, and who
fails to exercise ordinary care to prevent children from playing therewith or resorting
thereto, is liable to a child of tender years who is injured thereby, even if the child is
technically a trespasser in the premises. [Jarco Marketing Corp. v. CA, G.R. No. 129792
(1999)]

Reason for doctrine: Although the danger is apparent to those of age, it is so enticing or
alluring to children of tender years as to induce them to approach [Ibid].

Note: The attractive nuisance doctrine is generally not applicable to bodies of water in the
absence of some unusual condition or artificial feature. A swimming pool is not an
attractive nuisance, for while it is attractive, it is merely a duplication of a work of nature
[Hidalgo Enterprises v. Balandan, G.R. L-3422, (1952)]

Criminal prosecution as a remedy

The remedies against a public nuisance are:
1. A prosecution under the Penal Code or any local ordinance; or
2. A Civil Action; or
3. Abatement, without judicial proceedings. [Art. 699, CC]

Judgment with abatement as a remedy

The remedies against a public nuisance are:
1. A prosecution under the Penal Code or any local ordinance; or
2. A Civil Action; or
3. Abatement, without judicial proceedings. [Art. 699, CC]

If a civil action is brought by reason of the maintenance of a public nuisance, such action
shall be commenced by the city or municipal mayor. [Art. 701, CC]

Extrajudicial abatement as a remedy

The remedies against a public nuisance are:
1. A prosecution under the Penal Code or any local ordinance; or
2. A Civil Action; or
3. Abatement, without judicial proceedings. [Art. 699, CC]
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! It must be reasonably and efficiently exercised.

! Means employed must not be unduly oppressive on individuals.
! No more injury must be done to the property or rights of individuals than is necessary to
accomplish the abatement.
! No right to compensation if property taken or destroyed is a nuisance.
a. Summary Abatement Nuisances per se

Since they affect the immediate safety of persons and property, they may be summarily
abated under the undefined law of necessity. [Monteverde v. Generoso, 52 Phil 123]

Nuisances per accidens

No authority has the right to compel the abatement of a particular thing or act as a
nuisance without reasonable notice to the person alleged to be maintaining or doing the
same of the time and place of hearing before a tribunal authorized to decide whether
such a thing or act does in law constitute a nuisance. [Monteverde v. Generoso, 52 Phil
123]

If no compelling necessity requires the summary abatement of a nuisance, the municipal

authorities, under their power to declare and abate nuisances, do not have the right to
compel the abatement of a particular thing or act as a nuisance without reasonable notice
to the person alleged to be maintaining or doing the same of the time and place of hearing
before a tribunal authorized to decide whether such a thing or act does in law constitute a
nuisance. [Iloilo Cold Storage v. Municipal Council, 24 Phil 471]

b. Need for Abatement

One of the most serious hindrances to the enjoyment of life and property is a nuisance.
Provisions for its abatement are indispensable (Report of the Code Commission, p.51).

Special Injury to Individual

A private person may file an action on account of public nuisance, if it is specially
injurious to himself. [Art. 703, CC]

Any private person may abate a public nuisance which is specially injurious to him by
removing or, if necessary, destroying the thing which constitutes the same, without
committing a breach of the peace, or doing necessary injury. But if necessary:

1. That demand be first made upon the owner or possessor of the property to
abate the
nuisance;
2. That demand has been rejected;
3. That the abatement be approved by the district health officer and executed with
the assistance of the local police; and
4. That the value of the destruction does not exceed Three-Thousand Pesos. [Art.
704,
 62

CC]

Right of Individual to Abate Public Nuisance

Process for Extrajudicial Abatement:
1. The district health officer shall take care that one or all of the remedies against a public
nuisance are availed of. [Art. 700, CC]

2. The district health officer shall determine whether or not abatement, without judicial
proceedings, is the best remedy against a public nuisance. [Art. 702, CC]

Process for Judicial Abatement (through Civil Action):

General Rule: If a civil action is brought by reason of the maintenance of a public
nuisance, such action shall be commenced by the city or municipal mayor. [Art. 701, CC]

Exception: A private person may file an action on account of a public nuisance if it is

especially injurious to him. [Art. 703, CC]

Rationale for Exception: An individual who has suffered some special damage different
from that sustained by the general public may maintain a suit in equity for an injunction to
abate it, or an action for damages which he has sustained. The action becomes a tort if
an
individual has suffered particular harm, in which case the nuisance is treated as a private
nuisance with respect to such person.

Requisites of the right of a private individual to bring a civil action to abate a public
nuisance [Art. 704, CC]

1. That demand be first made upon the owner or possessor of the property to abate the
nuisance;
2. That such demand has been rejected;
3. That the abatement be approved by the district health officer and executed with the
assistance of the local police; and
4. That the value of the destruction does not exceed P3,000.

Rules
1. The right must be exercised only in cases of urgent or extreme necessity. The thing
alleged to be a nuisance must be existing at the time that it was alleged to be a nuisance.

2. A summary abatement must be resorted to within a reasonable time after knowledge

of the nuisance is acquired or should have been acquired by the person entitled to abate.

3. The person who has the right to abate must give reasonable notice of his intention to
do so, and allow thereafter a reasonable time to enable the other to abate the nuisance
himself.
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4. The means employed must be reasonable and for any unnecessary damage or force,
the actor will be liable. The right to abate is not greater than the necessity of the case and
is limited to the removal of only so much of the objectionable thing as actually causes the
nuisance.

4. The property must not be destroyed unless it is absolutely necessary to do so.

PROPERTY IN GENERAL

Case summary: the property of Mike (agricultural land) was declared alienable and
disposable while the Property of Rigor (timber land) was declare, no longer intended for
public use.

As to the the property of Rigor, it was effectively removed from the mantle of public
dominion since it was declared by the law that it is no longer needed for public use.

As to the agricultural land, though it was declared alienable and disposable land, such
declaration made by the State of the conversion into patrimonial property must be made
in the form of law enacted by the Congress of by the President (when the president is
authorized by a law). With such express declaration, properties were effectively removed
from the ambit of public dominion. Furthermore, the said property must be declared that
such are no longer intended for public use.

Prescription would never attach the agricultural land owned by Mike since there must be
positive law converting the land of public dominion into a patrimonial property.

As to the timber land, the land must be in open, continuous, exclusive and notorious
possession and occupation of alienable and disposable lands of the public domain as
basis for judicial confirmation of imperfect title must be from June 12, 1945 or earlier.

The prescription will only begun to run only from the time the State declared the land that
it is no longer intended to use for public (30 years). ordinary prescriptive period,
possession of the property for 10 years in good faith without just title.